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� ��5, u . � '.t' � f \ � \ r -�� .�i-• .� �� +• � � � �� " The Annual Comprehensive Financial Report for Hamilton, Ohio -Year Ended 12/31/22 CITY OF HAMILTON, OHIO ,,.:=====•�i ,,_ � ,:- � ,,.- ,,,�_ ,:_, �':� � '� ,:. � ;; :: �,.. � � � .� . �' �.��f CITY OF HAMILTON, OHIO ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 Prepared by: Department of Finance David Jones Finance Director CITY OF HAMILTON, OHIO ,,,.;;� ,. ,-_=----; i ''��- � ;�= ,,;"" � ,,;� � � ;; '� �,.. � � � .� � • ��s` CITY OF HAMIL TON, OHIO TABLE OF CONTENTS CITY oF HAMILTON BUTLER COUNTY, OHIO I� INTRODUCTORY SECTION A Letter of Transmittal.............................................................................................v B List of Principal Officials....................................................................................xii C City Organizational Chart ..................................................................................xiii D Certificate of Achievement for Excellence in Financial Reporting ........................xiv I I FINANCIAL SECTION A Independent Auditors' Report................................................................................l B Management's Discussion and Analysis.................................................................5 C Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position...................................................................................20 Statement of Activities .......................................................................................22 Fund Financial Statement Governmental Funds: BalanceSheet.....................................................................................................24 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities.....................................................................................28 Statement of Revenues, Expenditures and Changes in Fund Balances..............30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities.................................................34 Statement of Revenues, Expenditures and Changes in Fund Balance (Budget and Actual): GeneralFund.................................................................................................36 Health Department Fund................................................................................37 Coronavirus State and Local Fiscal Recovery Funds (SLFRF)Fund............38 Proprietary Funds: Statement of Net Position...................................................................................40 Statement of Revenues, Expenses and Changes in Fund Net Position...............44 Statement of Cash Flows....................................................................................46 Fiduciary Funds: Statement of Net Position...................................................................................50 Statement of Changes in Net Position................................................................51 Notes to the Basic Financial Statements..................................................................52 -i - CITY OF HAMIL TON, OHIO D Required Supplementary Information: Schedule of City's Proportionate Share of the Net Pension Liability—Cost Sharing Plans .................................................................130 Schedule of City Pension Contributions—Cost Sharing Plans .............................133 Schedule of City's Proportionate Share of the Net Other Postemployment Benefits(OPEB)Liability(Asset)—Cost Sharing Plans ......................................136 Schedule of City's Other Postemployment Benefit(OPEB) Contributions —Cost Sharing Plans..............................................................................................138 Schedule of City's Other Postemployment Benefit(OPEB) Liability- SingleEmployer Plan............................................................................................141 Schedule of Changes in the City's Total Other Postemployment Benefits (OPEB) Liability—Single Employer Plan.............................................................143 Notes to the Required Supplementary Information...............................................144 E Combining and Individual Fund Statements and Schedules: Nonmaj or Governmental Financial Statements: Combining Balance Sheet.................................................................................154 Combining Statement of Revenues, Expenditures and Changes in FundBalances...................................................................................................156 Combining Balance Sheet—Nonmaj or Special Revenue Funds......................158 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Special Revenue Funds........................................164 Combining Balance Sheet—Nonmajor Capital Projects Funds.......................170 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Capital Projects Funds.........................................172 Individual Schedules of Revenues, Expenditures and Changes in Fund Balance (Budget and Actual): Major Governmental Funds: GeneralFund...............................................................................................174 Special Revenue Fund Health Department Fund..........................................................................177 Coronavirus State and Local Fiscal Recovery Funds (SLFRF)Fund......178 Capital Projects Fund Hamilton Capital Improvement Fund.......................................................179 Criminal Justice Center Construction Fund.............................................180 Nonmajor Governmental Funds: Special Revenue Funds: One Renaissance Center Fund..................................................................181 Unclaimed Monies Fund..........................................................................182 -ii - CITY OF HAMIL TON, OHIO Nonmajor Governmental Funds: Special Revenue Funds (Continued): Convention and Visitor's Bureau Fund....................................................183 Municipal Court Improvement Fund........................................................184 Public Safety/Health Income Tax Fund.................................................185 OneOhio Opioid Settlement Fund............................................................186 Dispute Resolution Proceeds Fund...........................................................187 SafetyServices Fund................................................................................188 Police Pension Fund.................................................................................189 PoliceLevy Fund......................................................................................190 Firemen's Pension Fund...........................................................................191 Fire EMS Levy Fund................................................................................192 StreetLevy Fund......................................................................................193 Champions Mill Sports Complex TIF Fund.............................................194 Stormwater Management Fund................................................................195 RefuseFund..............................................................................................196 Street Maintenance Fund..........................................................................197 Motor Vehicle License Tax Fund.............................................................198 Land Reutilization Fund...........................................................................199 HomeProgram Fund................................................................................200 ParkingFund............................................................................................201 GolfCourse Fund.....................................................................................202 Community Development Block Grant Fund...........................................203 Debt Service Funds: DebtService Fund....................................................................................204 Capital Projects Funds: Special Assessment Fund.........................................................................205 Municipal Improvement Tax Increment Equivalent Fund.......................206 Fire Station Construction Fund................................................................207 Governmental Building Sale Proceeds Fund............................................208 Issue II Proj ects Fund...............................................................................209 Infrastructure Program Fund....................................................................210 Per�nanent Fund: Benninghofen Trust Fund.........................................................................211 -iii - CITY OF HAMIL TON, OHIO Internal Service Funds: Combining Statement ofNet Position..................................................................213 Combining Statement of Revenues, Expenses and Changes inFund Net Position.............................................................................................214 Combining Statement of Cash Flows...................................................................215 Fiduciary Funds—Custodial Funds: Combining Statement of Net Position.............................................................218 Combining Statement of Changes in Net Position..........................................220 I�� STATISTICAL SECTION Net Position by Component-Last Ten Years.............................................................................. S 2 Changes in Net Position-Last Ten Years.................................................................................... S 5 Fund Balances, Governmental Funds -Last Ten Years............................................................. S 13 Changes in Fund Balances, Governmental Funds -Last Ten Years.......................................... S 16 Assessed Valuations and Estimated True Values of Taxable Property-Last Ten Years.......... S 22 Property Tax Levies and Collections -Last Ten Calendar Years.............................................. S 25 Direct and Overlapping Property Tax Rates -Last Ten Calendar Years ................................... S 28 Principal Property Tax Payers -Current Year and Nine Years Ago.......................................... S 30 Income Tax Collection Receipts by Fund-Last Ten Calendar Years....................................... S 31 Principal Income Tax Payers -Current Year and Nine Years Ago............................................ S 34 Ratios of Outstanding Debt by Type -Last Ten Years.............................................................. S 35 Ratios of General Bonded Debt Outstanding-Last Ten Years ................................................. S 38 Computation of Direct and Overlapping Debt Attributable to Governmental Activities -Current Year.................................................................................... S 41 Debt Limitations -Last Ten Years............................................................................................. S 42 Pledged Revenue Coverage-Last Ten Years............................................................................ S 45 Demographic and Economic Statistics -Last Ten Years........................................................... S 48 Principal Employers -Current Year and Nine Years Ago ......................................................... S 51 Full Time Equivalent Employees by Function-Last Ten Years............................................... S 52 Operating Indicators by Function-Last Ten Years................................................................... S 54 Capital Asset Statistics by Function-Last Ten Years............................................................... S 60 -iv- INTRODUCTORY SECTION � �F �� G �� O � 2 � * � O � � �' O �F � R COZ�� CITY OF HAMILTON, OHIO 1,,.,:=='��i .�- � '�� ;= 1 ' ,:- �;; ,. � � �.- � •� � • � ��s�f ='��"� ' �ii CITY OF HAMILTON OHIO _ � ,� `� I I I r Department of Finance �� One Renaissance Center ' ��f 345 High Street, Hamilton Ohio 45011 r��,,,d��,�q, phone (513) 785-7150 fax (513) 785-7160 June 21,2023 To the Honorable Mayor,Vice Mayor, City Council and All Citizens of the City of Hamilton, Ohio: We are pleased to present this Annual Comprehensive Financial Report for Hamilton, Ohio. This report, for the year ended December 31, 2022, contains the financial statements and other financial and statistical data that provide a complete and full disclosure of all material financial aspects of the City. The responsibility for the accuracy of all data presented and its completeness and fairness of presentation rests with the City of Hamilton's Department of Finance. This report presents the financial activity of the City in conformity with generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB) and other recognized authoritative sources. The City of Hamilton is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984, the Single Audit Act Amendments of 1996 and the U. S. Office of Management and Budget's Super Circular. Information related to this single audit, including a schedule of federal expenditures, the independent auditors' reports on internal controls and compliance with applicable laws and regulations, and a schedule of findings and questioned costs are included in a separately issued single audit report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a ManagemenYs Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Hamilton's MD&A can be found immediately following the independent auditors' report. THE REPORTiNG ENTITY The accompanying basic financial statements comply with the provisions of Governmental Accounting Standards Board Statement No. 14, The Financial Reporting Entity, in that they include all the organizations, activities, functions and component units for which the City (the reporting entity) is financially accountable. Financial accountability is defined as the appointment of a voting majority of the component unit's board and either(1) the City's ability to impose its will over the component unit, ar (2) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the City. -v- CITY OF HAMILTON, OHIO Letter of Transmittal For the Year Ended December 31, 2022 Based on the foregoing, the Hamilton Community Authority (HCA) has been determined to be a component unit of the City. The HCA is a new community authority (NCA) authorized under Chapter 349 of the Ohio Revised Code. NCA's are to be created "for the purpose of encouraging orderly development of well planned, diversified and economically sound new communities and of encouraging the initiative and participation of private enterprise in such undertakings; and encouraging cooperation between the developer and community authority to carry out a new community development program." The reporting entity includes all funds, agencies, boards and commissions that are part of the primary government, along with component units. The primary government includes the financial activities of the Hamilton Civil Service Commission, the Hamilton Board of Health, and the Hamilton Municipal Court. CITY OVERVIEW Located thirty miles northwest of Cincinnati, Hamilton encompasses approximately 21.5 square miles and is located within a one-day drive of approximately 65% of the purchasing population in the United States. A network of four interstate highways (71, 74, 75 and 275) and five U.S. and Ohio routes (4, 128, 129, 177 and 127) serve the City. The City of Hamilton provides a host of traditional municipal services including police and fire protection, health and certain social services, operation of a municipal court, street maintenance and other governmental services. In addition, the City owns and operates four utility systems to serve consumers within the City and certain immediately adj acent environs. A seven-member Council, elected by voters of the City, governs the City. Council is elected far four-year staggered terms. The Mayor, who is separately elected, is recognized as the official head of the City for all ceremonial purposes and presides at Council meetings. The voters also elect a Municipal Court Judge, who serves a six-year term, to preside over the proceedings of the Hamilton Municipal Court. City Council appoints the City Manager who is the chief executive officer of the City. The Manager is charged with the proper administration of all affairs of the City. The Manager has the authority to appoint and remove all heads of departments and all subordinate officers and employees of the City and they exercise control over all departments created by the City Council. RECENT ECONOMIC DEVELOPMENT Since 2013 alone, more than $620 million has been invested in our community by businesses locating or expanding here, developers renovating our downtown buildings, or through infrastructure upgrades and improvements. In the same period, more than 2,500 jobs have been filled. These numbers are a testament to the strength of our local economy, and they show the optimism of local residents and employers. The following includes some highlights of this growth in our community. -vi - CITY OF HAMILTON, OHIO Letter of Transmittal For the Year Ended December 31, 2022 The City came out of the COVID-19 pandemic with a historic year in 2022, thanks in large part to the opening of Spooky Nook Sports Champion Mi1L The facility is the largest indoor sports complex in the United States, spanning over 1.2 million square feet of space. The facility includes space for 28 basketball courts or 46 volleyball courts, a full-size multi-sport outdoor turf field, 200-meter indoar track, 65,000 square foot fitness center, and a 5,000 square foot arcade. The site also includes a 233-room hotel and conference center that features 19 meeting rooms. The facility is already having a significant impact on economic development in the City, with new businesses coming into the City and current businesses planning to expand. The growth and attraction of manufacturing business continues to be a priority, with the City seeing thousands of square footage in expansions from companies such as ThyssenKrupp Bilstein, Vinylmax, and 80 Acres Farms, as well as new additions such as Saica. The City experienced growth in a variety of sectors including construction, packaging, and food. Investment along the main business corridors has continued, with numerous residential and commercial projects spanning the High-Main Street districts, including the Rossville Flats, which broke ground in November 2021. The complex is expected to be complete in fall of 2023, and will offer approximately 76 modern garden-style apartments and two 1,600- square-foot commercial spaces in the historic Rossville neighborhood. Our Economic Development Department warked with 18 retail and restaurant businesses that opened or expanded in Hamilton in 2022. All of these businesses enhance the quality of life in Hamilton, making it a better place for people to live, work, and shop. New or expanded small businesses in 2022 included: • Dulce Pecado • Harley Uzed Apparel&Parts Boutique • Kinship Teas • Luke's Custom Cakes (expansion) • Morgan Renae Bridal&Event Venue • OffCenter Designs • Oliver's Toy Chest • PAHHNI Water • Pohlman Lanes (expansion) • Pour House • Rose of Sharon • Seraph by the River • Studio Undefined • TerraLuna Pilates -vii - CITY OF HAMILTON, OHIO Letter of Transmittal For the Year Ended December 31, 2022 • The Fringe • The Hamiltonian • The Studio • Wildfire Hygge Home Now one of Hamilton's largest companies, ThyssenKrupp Bilstein has been a reliable advocate and business partner to the Hamilton community for many years. The company began production at its facility just off Symmes Road in 1995. With only about 185 employees in 2011, the German-based auto parts manufacturer has grown to approximately 750 employees as of December 2021, and invested a total of $43.2 million in expanding its facilities. In 2021, the company was awarded a state tax credit to create more jobs and increase business opportunities. The credit comes as a result of their newly announced expansion: a 150,000 square foot addition that will bring 150 new full-time positions and generate approximately $5.6 million in additional annual payroll. Hamilton has many wonderful employers, and as one of them, Bilstein has consistently demonstrated its commitment to our city and this region as a whole. Vinylmax, a Hamilton company that manufactures vinyl and wood windows and window replacements, was awarded a state tax credit in 2021 to create more jobs and increase business opportunities. The credit comes as a result of their announced 150,000 square foot expansion that will bring 150 new full-time positions and generate approximately $5.6 million more in annual payroll. In July 2020, Saica Group, one of the largest and most advanced European players in the development and production of recycled paper for corrugated packaging, announced its �rst North American facility in Hamilton, Ohio. The new 350,000 square-foot corrugated manufacturing facility in the Hamilton Enterprise Park produced its first boxes in November 2021 and became fully operational in early 2022. With this new project, Saica Group created 64 new jobs in the City of Hamilton. The jobs created at the site consist of 27 skilled operators, 15 manufacturing, engineering, and supply chain professionals, 13 sales staff, and 9 office and management positions. In 2020, 80 Acres Farms officially opened their $30 million indoor farming complex in Hamilton Enterprise Park. The 64,000 square foot indoor farm can produce 300 times more food than an ordinary farm using 97% less water, without the need for pesticides. The company is revolutionizing the way Americans grow, sell, buy, and eat food. The company's headquarters are located in Hamilton, and has facilities in Ohio, Arkansas, North Carolina, and Alabama. In 2021, Newsweek Magazine named the company no. 81 among "America's Most Loved Workplaces 2021" from its survey of over 800,000 employees. The City continues to see development on Route 4, a highly traveled corridor in Hamilton. Third Eye Brewing is currently constructing a$3.1 development in the former Pepsi Bottling Plant. The new facility will include a 10,000 square foot production facility, a spacious taproom, and a full-service kitchen. The project is expected to be complete in 2023. Nearby in this area, the YWCA opened its new $11 million facility. The new location includes 45 permanent and supportive housing units for people experiencing chronic homelessness in Butler County. -viii - CITY OF HAMILTON, OHIO Letter of Transmittal For the Year Ended December 31, 2022 Several proposed upcoming projects in the Lindenwald neighborhood are expected to make signi�cant economic impacts in the area. Bloomfield/Schon, in partnership with the City of Hamilton, is planning to develop the Shuler-Benninghofen Mill on the corner of Pleasant and Williams Avenues. The investment, expected to be north of $20 million, would bring over 100 new apartment units and retail space to a neglected historic property in Hamilton's most populous neighborhood. In addition, plans are in the works for renovation of the iconic Roemer Hardware building. INTERNAL ACCOUNTING AND BUDGETARY CONTROLS The City's budgetary accounting system was designed to provide reasonable, but not absolute, assurances that: 1. The City's assets are protected against loss and unauthorized use or disposition; and 2. Reliable financial reports for preparing financial statements and providing accountability for assets are maintained. The concept of reasonable assurance states internal controls should be evaluated using the following criteria: L The expenditure associated with providing the internal controls should not exceed the benefits likely to be derived from their implementation; and 2. The evaluation of the offsetting costs and bene�ts involves estimates and judgment by the members of the Finance Department. It is the belief of the administrative and financial management personnel that the City's financial controls adequately safeguard existing assets and provide reasonable assurance of the proper recording of financial transactions. Budgetary control is maintained by an encumbrance of purchase commitment amounts prior to the release of purchase orders to vendors. The City Manager and the appropriate Department Director submit requisitions for the expenditure of monies to the Director of Finance for certification of funds and preparation of a purchase order after approvaL The purchase order is reviewed for the availability of funds and the estimated expenditure is encumbered against the available appropriation. Encumbrances, which would exceed the available appropriation, are not approved or recorded until City Council authorizes additional appropriations. Unencumbered appropriations lapse at the end of each year. -ix- CITY OF HAMILTON, OHIO Letter of Transmittal For the Year Ended December 31, 2022 The Government Finance Officers Association (GFOA) recommends local governments establish a rainy day fund equal to at least two months operating reserve or 16.7% of annual expenditures. In 2012, City Council enacted Budget and Financial Policies Resolution#R2012-6-25, which requires the maintenance of a minimum General Fund Balance (reserve) of 10-16% of annual expenditures. Per this resolution, if the General Fund reserve rises above 16°/o of General Fund revenues at the fiscal year-end, the amount over 16°/o can be swept into an Economic Budget Stabilization Fund, which can be expended only through special action by City Council. In 2022, the City once again saw record income tax collections, with the General Fund's portion topping $27.2 million, an increase of$2.7 million over actual collections in 2021. The City used a combination of ARPA funds and carryover fund balance to make several strategic expenditures to invest in the City's future and keep the momentum going in the growth the City has seen in recent years. The City has budgeted $4.0 million for construction of a new Fire Station 26, $2.2 million for stormwater system improvements, $115 million for South B Street improvements, and approximately $8.0 million (in addition to debt proceeds of $24 million) on the construction of a new criminal justice center. The planned criminal justice center will be the new home of the Hamilton Police Department and the Hamilton Municipal Court. Construction on the $32 million facility will begin in 2023. INDEPENDENT AUDIT Included in this report is the unmodified audit opinion rendered on the City's financial statements for the year ended December 31, 2022, by Clark, Schaefer, Hackett& Co. City management plans to continue to subject the financial statements to an annual independent audit as part of the preparation of an Annual Comprehensive Financial Report. This annual independent audit serves to maintain and strengthen the City's accounting and budgetary controls. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Hamilton for its Annual Comprehensive Financial Report for the fiscal year ended December 31, 2021. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Comprehensive Financial Report,whose contents conform to program standards. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements and we are submitting it to the GFOA. -x - CITY OF HAMILTON, OHIO Letter of Transmittal For the Year Ended December 31, 2022 ACKNOWLEDGEMENTS The City of Hamilton is proud to be submitting this Annual Comprehensive Financial Report, which is the result of the continued cooperation and combined efforts of the City's Finance Department staff. Special thanks to Assistant Finance Directar Matthew McKinney and his staff for their outstanding wark that created this document. The support of the Hamilton City Council was essential in the successful preparation and issuance of this report. ',i,M-e 4,. �rr�� ' .� Ut�tit�► � Ov�e.S Joshua A. Smith David C. Jones, CPA City Manager Director of Finance -xi - CITY OF HAMILTON, OHIO List of Principal Officials For the Year Ended December 31, 2022 ELECTED OFFICIALS OFFICE Pat Moeller Mayor Michael Ryan Vice Mayor Eric Pohlman Council Member Carla Fiehrer Council Member Joel Lauer Council Member Susan Vaughn Council Member Timothy Naab Council Member Daniel J. Gattermeyer,Judge Municipal Court ADMINISTRATIVE PERSONNEL TITLE Joshua A. Smith City Manager Timothy Werdmann Executive Director of Internal Services Thomas Vanderhorst Executive Director of External Services Edwin Porter Executive Director of Infrastructure Services J. Scott Scrimizzi Executive Director of Public Safety David Jones, CPA Director of Finance Letitia Block Director of Law Brandon Saurber Director of Neighborhoods Ken Carrier Director of Strategy& Information Jeanne Pope Director of Civil Service and Personnel Craig Bucheit Police Chief Mark Mercer Fire Chief Jody Gunderson Director of Economic Development Adam Helms Director of Resident Services Kenneth Rivera Director of Building Cindy Hogg Director of Health Elizabeth Hayden Director of Planning Bill Hudson Director of Utility Operations Richard Engle, P.E. Director of Engineering Jim Williams Director of Public Warks Daniel Tidyman City Clerk -xii - CITY OF HAMILTON, OHIO City Organizational Chart For the Year Ended December 31, 2022 � � � Human Resources „ , ,�� . ciry cierk EieCted - Officials Executive _ - Leadership �� Team � , � � � , , � � _ � „ , � �„ . � , Resldent � �aW I Englneering 1 Police Servlces �1 Economlc Flnance Utlllty Operatlons Flre/EMS Development Planning 10�0�U0° PubllcWorks J 7echnology SeMces � Health Human Buslness Servlces Resources Bullding I �arge Management Team -xiii - CITY OF HAMILTON, OHIO Government Finance Officers Association of the Ilnited States and Canada Certifzcate ofAchievement for Excellence in Financial Reporting Go��crnmrnt Financc Of�ticcrs Association Certificate of Achievement for Excellence in Financial Reporting Prescntcd to C'ity of �lamilton Ohio f or its Annual �omprchcnsivc Financial Rcport For thc Fiscal Ycar Endcd Dccrmbcr 31. ?021 P- a��:u l:xccuti�c Dircrlor C'l:O -xlv- FINA►NCIAL SECTION `� �F N� �� G �� O � � � * � O � � �' O �F � � COZ�� CITY OF HAMILTON, OHIO 1,,.,:=='��i .�- � '�� ;= 1 ' ,:- �;; ,. � � �.- � •� � • � ��s�f � One East Fourth Street,Suite 1200, Cincinnati, Ohio 45202 BUSINESS ADVISORS P. 513.241.3111 � F.513.241.1212 INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of City Council City of Hamilton, Ohio: Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Hamilton, 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, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Hamilton, Ohio, as of December 31, 2022, and the respective changes in financial position and, where applicable, cash flows, and the respective budgetary comparisons for the General Fund, Health Department Fund, and Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards.) Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Hamilton, Ohio and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the 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 of Hamilton, Ohio'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. cshco.com Auditors'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 auditors' 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 generally accepted auditing standards 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 generally accepted auditing standards 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 City of Hamilton, Ohio'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 City of Hamilton, Ohio's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the managemenYs discussion and analysis and other required supplementary information, as identified in the table of contents, be presented to supplement the basic financial statements. Such information, 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 management's 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 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 report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' 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 on them. 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. Other Reporting Required by GovernmentAuditing Standards In accordance with GovernmentAuditing Standards,we have also issued our report dated June 21, 2023 on our consideration of the City of Hamilton, Ohio's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Hamilton's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Hamilton's internal control over financial reporting and compliance. cea�� s��a��, �a��tt � co. Cincinnati, Ohio June 21, 2023 ,,:;:;::�.i ,�_-- , .:= ,,_- ,,: ,,: ;.. ;: � . ,�- �;; .. � � � �-• •� � • � �� -4 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited This discussion and analysis of the City of Hamilton's financial performance provides an overall review of the City's financial activities for the fiscal 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, notes to the basic financial statements and financial statements to enhance their understanding of the City's financial performance. FINANCIAL ffiGHLIGHTS Key(GAAP Basis) financial highlights for 2022 are as follows: ❑ In total, net position increased $47,199,627. Net position of governmental activities increased $38,503,060, or 63%.Net position ofbusiness-type activities increased$8,696,567, or 3%. ❑ General revenues accounted for $52,690,985 in revenue or 21% of all revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $196,415,365,or 79°/o,of total revenues of$249,106,350. ❑ The City had $77,107,753 in expenses related to governmental activities; $62,687,478 of these expenses were offset by program specific charges for services, grants or contributions. General revenues of$53,918,335 were adequate to provide for these programs. ❑ The general fund had$46,862,010 in revenues and$25,246,827 in expenditures. The general fund's fund balance decreased from$32,240,042 to $32,202,930. OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of four parts — management's discussion and analysis, the basic financial statements, required supplementary information, and an optional section that presents combining and individual statements far nonmajor governmental funds. The basic financial statements include two kinds of statements that present different views of the City: These statements are as follows: 1. The Government-Wide Financial Statements — These statements provide both long-term and short-term information about the City's overall financial status. 2. The Fund Financial Statements — These statements focus on individual parts of the City, reporting the City's operations in more detail than the government-wide statements. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. Required supplemental information is also presented, which provides additional data regarding the net pension and OPEB liabilities/assets. -5 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Government-wide Statements The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the City's assets, liabilities, and deferred outflows/inflows of resources. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the City's net position and how it has changed. Net-position is one way to measure the City's financial health. • Over time, increases or decreases in the City's net position are an indicator of whether its �nancial health is improving or deteriorating,respectively. • To assess the overall health of the City you need to consider additional nonfinancial factors such as the City's tax base and the condition of the City's capital assets. The government-wide financial statements of the City are divided into two categories: • Governmental Activities — Most of the City's programs and services are reported here including security of persons and property,public health and welfare services, basic utility services, leisure time activities,community environment, transportation and general government. • Business-Ty�e Activities—These services are provided on a charge for goods or services basis to recover all of the expenses of the goods or services provided. The City's gas, electric, water and wastewater services are reported as business-type activities. Fund Financial Statements Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes. The fund financial statements provide more detailed information about the City's most significant funds,not the City as a whole. Governmental Funds — Most of the City's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance programs. The relationship (or differences)between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. The City maintains a multitude of individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental statement of revenues, expenditures and changes in fund balances for the major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. -6 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Proprietary Funds — The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its gas, electric, water and wastewater operations. All enterprise funds are reported as major funds in the proprietary funds Statement of Net Position and Statement of Revenues, Expenses and Changes in Fund Net Position. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its fleet management services and costs of certain goods or services provided to other departments or agencies of the City. Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. All of the City's �duciary activities are reported in a separate Statement of Net Position and Statement of Changes in Net Position. Individual fund data for each of these funds is provided in the form of combining statements elsewhere in this report. This space intentionally left blank. -7 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited FINANCIAL ANALYSIS OF THE CITY AS A WHOLE As noted earlier, net position may serve over time as a useful indicator of a government's financial health. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $357,295,457 ($99,945,917 in governmental activities and$257,349,540 in business type activities) as of December 31, 2022. By far, the largest portion of the City's net position ($300,625,924) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment, infrastructure), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City'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 table below provides a summary of the City's statement of net position for 2022 compared to 2021. Governmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Current andOther Assets $163,712,828 $110,006,998 $105,290,399 $102,476,711 $269,003,227 $212,483,709 Net OPEB Asset 2,242,753 1,239,183 4,061,359 2,272,147 6,304,112 3,511,330 Capital assets,Net 149,486,004 133,317,229 313,436,538 318,217,413 462,922,542 451,534,642 Total Assets 315,441,585 244,563,410 422,788,296 422,966,271 738,229,881 667,529,681 Deferred Outflows of Resources 24,126,215 15,461,972 5,978,110 5,014,701 30,104,325 20,476,673 NetPensionLiability 52,273,849 58,693,873 11,017,193 18,478,104 63,291,042 77,171,977 Net OPEB Liability 8,103,849 7,555,970 0 0 8,103,849 7,555,970 Total OPEB Liability 250,551 336,373 1,002,204 1,345,492 1,252,755 1,681,865 Other Long-term Liabilities 90,442,586 88,977,599 125,302,635 130,060,169 215,745,221 219,037,768 Other Liabilities 46,025,961 17,136,222 16,129,396 14,520,747 62,155,357 31,656,969 Total Liabilities 197,096,796 172,700,037 153,451,428 164,404,512 350,548,224 337,104,549 Deferred Inflows of Resources 42,525,087 25,882,488 17,965,438 14,923,487 60,490,525 40,805,975 Net Position Net Investment in Capital Assets 107,664,999 98,174,900 192,960,925 195,264,437 300,625,924 293,439,337 Restricted 25,144,359 20,840,792 11,089,133 11,063,967 36,233,492 31,904,759 Unrestricted(Deficit) (32,863,441) (57,572,835) 53,299,482 42,324,569 20,436,041 (15,248,266) Total Net Position $99,945,917 $61,442,857 $257,349,540 $248,652,973 $357,295,457 $310,095,830 An additional portion of the City's net position represents resources that are subject to external restrictions on how they may be used. In the current year,this represented$36,233,492. The net pension liability is reported by the City pursuant to GASB Statement 68, "Accounting and Financial Reporting for Pensions—an Amendment of GASB Statement 27." The net OPEB liability(asset) is reported by the City pursuant to GASB Statement 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions," which significantly revises accounting for costs and liabilities related to other postemployment benefits (OPEB). For reasons discussed below, many end users of this financial statement will gain a clearer understanding of the City's actual financial condition by adding deferred inflows related to pension and OPEB, the net pension liability and the OPEB liabilities to the reported net position and subtracting deferred outflows related to pension and OPEB. - 8 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited The following discussion pertains to the Net Pension and Net OPEB liabilities (asset) reported in the City's financial statements as a result of the City's participation in the Ohio Public Employee's Retirement System and Ohio Police and Fire Pension Fund. The Total OPEB liability reported in the City's financial statements reflects OPEB benefits provided by the City through a Retiree Life Insurance plan. See Note 11 for more information on this plan. Governmental Accounting Standards Board standards are national and apply to all government financial reports prepared in accordance with generally accepted accounting principles. Prior accounting for pensions (GASB 27) and postemployment benefits (GASB 45) focused on a funding approach. This approach limited pension and OPEB costs to contributions annually required by law, which may or may not be sufficient to fully fund each plan's net pension liability or net OPEB liability. GASB 68 and GASB 75 take an earnings approach to pension and OPEB accounting; however,the nature of Ohio's statewide pension/OPEB plans and state law governing those systems requires additional explanation in order to properly understand the information presented in these statements. GASB 68 and GASB 75 require the net pension liability and the net OPEB liability to equal the City's proportionate share of each plan's collective: l. Present value of estimated future pension/OPEB benefits attributable to active and inactive employees' past service 2. Minus plan assets available to pay these benefits 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 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. The employee enters the employment exchange with the knowledge that the employer's promise is limited not by contract but by law. The employer enters the exchange also knowing that there is a specific, legal limit to its contribution to the retirement system. In Ohio, there is no legal means to enforce the unfunded liability of the pension/OPEB plan as against the public employer. State law operates to mitigate/lessen the moral obligation of the public employer to the employee, because all parties enter the employment exchange with notice as to the law. The retirement system is responsible for the administration of the pension and OPEB plans. -9 - CITY OF HAMILTON, 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 above, 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. In accordance with GASB 68 and GASB 75, the City's statements prepared on an accrual basis of accounting include an annual pension expense and an annual OPEB expense for their proportionate share of each plan's change in net pension liability and net OPEB liability (asset), respectively, not accounted for as deferred inflows/outflows. This space intentionally left blank. - 10 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Change in Net Position— The following table shows the change in net position for 2022 compared with 2021: Crovernmental Business-type Activities Activities Total 2022 2021 2022 2021 2022 2021 Revenues Progam Revenues: Charges for Services and Sales $18,801,829 $18,774,072 $133,727,887 $130,920,435 $152,529,716 $149,694,507 Operating Grants and Contributions 33,295,944 14,461,507 0 0 33,295,944 14,461,507 Capital Grants and Contributions 10,589,705 2,972,337 0 0 10,589,705 2,972,337 TotalProgamRevenues 62,687,478 36,207,916 133,727,887 130,920,435 196,415,365 167,128,351 General Revenues: Property Taxes 11,070,110 9,710,941 0 0 11,070,110 9,710,941 IncomeTaxes 36,761,592 31,245,133 0 0 36,761,592 31,245,133 OtherLocalTaxes 3,282,213 3,301,292 0 0 3,282,213 3,301,292 Intergovernmental,Unrestricted 3,240,413 3,066,316 0 0 3,240,413 3,066,316 Investment Earnings (1,819,798) (142,439) (1,227,350) (342,394) (3,047,148) (484,833) Miscellaneous 1,383,805 4,293,378 0 0 1,383,805 4,293,378 Total General Revenues 53,918,335 51,474,621 (1,227,350) (342,394) 52,690,985 51,132,227 TotalRevenues 116,605,813 87,682,537 132,500,537 130,578,041 249,106,350 218,260,578 Progam Expenses General Crovernment 18,470,115 6,246,010 0 0 18,470,115 6,246,010 Security of Persons andProperty 36,180,916 33,588,698 0 0 36,180,916 33,588,698 Leistae Time Activities 2,063,074 2,012,859 0 0 2,063,074 2,012,859 Commwiiry Environment 3,792,757 1,818,527 0 0 3,792,757 1,818,527 Basic Utility Services 6,681,915 7,558,497 0 0 6,681,915 7,558,497 Transportation 6,256,765 6,621,360 0 0 6,256,765 6,621,360 Public Health and Welfare Services 846,360 712,773 0 0 846,360 712,773 Interest and Fiscal Charges 2,815,851 2,636,393 0 0 2,815,851 2,636,393 GasUtility 0 0 20,191,885 17,796,790 20,191,885 17,796,790 Electric Utility 0 0 77,236,352 68,304,783 77,236,352 68,304,783 WaterUtility 0 0 15,504,942 13,540,250 15,504,942 13,540,250 Wastewater Utility 0 0 11,865,791 10,274,234 11,865,791 10,274,234 TotalExpenses 77,107,753 61,195,ll7 124,798,970 109,916,057 201,906,723 171,ll1,174 Change in Net Position Before Transfers 39,498,060 26,487,420 7,701,567 20,661,984 47,199,627 47,149,404 Transfers (995,000) 0 995,000 0 0 0 Total Change in Net Position 38,503,060 26,487,420 8,696,567 20,661,984 47,199,627 47,149,404 Beginning Net Position 61,442,857 34,955,437 248,652,973 227,990,989 310,095,830 262,946,426 EndingNet Position $99,945,917 $61,442,857 $257,349,540 $248,652,973 $357,295,457 $310,095,830 - 11 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Governmental Activities Governmental activities net position increased $38,503,060, or 63% during 2022. An increase in operating grants can be attributed to State and Local Fiscal Recovery Funds, received as part of the American Rescue Plan Act. Also contributing to the increase in operating grants were HOME Program grants received for new single family housing construction. Capital grants and contributions included grants received from the State of Ohio for the construction of a bike trail as well as Ohio Department of Transportation grants received for various street and traffic improvement projects. Property taxes received as a result of a tax increment financing agreement for the Champions Mill Sports Complex project resulted in an increase in property tax receipts. Increases in income taxes can be attributed to economic expansion at the Hamilton Enterprise Park and due to the Spooky Nook Sports complex. A decrease in investment earnings can be attributed to a decrease in the fair value of investments. An increase in miscellaneous revenue in the prior year due to refunds received from the Ohio Bureau of Warker's Compensation resulted in a subsequent decrease in the current year. A substantial increase in general government expense was due to multiple factors. The City contributed approximately $4,000,000 to the Hamilton Community Improvement Corporation and the Hamilton CORE Fund. In 2022 the City recognized a $3,500,000 claim payable to St. Clair Township due to a settlement with the Township involving the annexation of property by the City from the Township. An increase in basic utility services in the prior year due to infrastructure improvements at the Spooky Nook Sports complex resulted in a subsequent decrease in basic utility services in 2022. Grant funding received for new single family home construction contributed to an increase in community environment expense. An overall decrease in expenses in the prior year due to changes in the net pension and net OPEB liabilities/asset contributed to increases in general government and security of persons expense in 2022. The City receives an income tax, which is based on 2% of all salaries, wages, commissions and other compensation and on net profits earned from residents and businesses located within the City. Income taxes and property taxes made up 31°/o and 9%, respectively, of revenues for governmental activities in 2022. The City's reliance upon tax revenues is demonstrated by the following graph indicating 43°/o of total revenues from general tax revenues: Percent 43.16% Revenue Sources 2022 ofTotal ="'��"`�-- ��4% General Tax Revenues $51,ll 3,915 4316% �� i' i Intergovemmental,Unrestricted 3,240,413 2.74% � 1.17%�,k4 Program Revenues 62,687,478 52.93% ��_ General Other 1,383,805 117% -`- 52.93% Total Revenue* $ll8,425,611 100.00% *Excludes investment earnings of($1,819,798) - IZ - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Business-Type Activities Net position of business-type activities increased$8,696,567. This represents a 3% change from the prior year. An increase in revenues can be attributed to increases in receipts in the gas and electric departments. Gas revenues increased due to increased sales to City consumers as well as increased sales to the AMP Fremont Energy Center. Additionally, the Gas Cost Recovery Rider decreased from a credit of$0.09 Ccf to $0.05 Ccf. Electric department receipts increased mostly due to insurance reimbursements received for damages at the Greenup Hydroelectric Plant. A substantial decrease in expenses across all four utilities in the prior year due to changes in the net pension and net OPEB liabilities/asset resulted in a subsequent increase in expense in 2022. FINANCIAL ANALYSIS OF THE CITY'S FUNDS The City's governmental funds reported a combined fund balance of$95,836,188, which is an increase from last year's balance of $76,831,157. The schedule below indicates the fund balance and the total change in fund balance as of December 31,2022 and 2021: Fund Balance Fund Balance Increase December 31,2022 December 31,2021 (Decrease) General $32,202,930 $32,240,042 ($37,112) Health Department 13,772 12,734 1,038 SLFRF 0 (17,517) 17,517 Hamilton Capital Improvement 30,519,844 26,031,292 4,488,552 Criminal Justice Center Construction 7,169,061 0 7,169,061 Other Govemmental 25,930,581 18,564,606 7,365,975 Total $95,836,188 $76,831,157 $19,005,031 General Fund—The City's General Fund balance change is due to several factors. The tables that follow assist in illustrating the financial activities of the General Fund: - 13 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited 2022 2021 Increase Revenues Revenues (Decrease) Income Taxes $28,199,086 $24,240,373 $3,958,713 Property and Other Local Ta�s 5,866,186 5,863,563 2,623 Intergovernmental Revenues 4,234,620 11,868,694 (7,634,074) Charges for Services 6,603,077 6,302,884 300,193 Licenses and Permits 1,139,735 1,030,580 109,155 Investment Earnings (59,679) 97,195 (156,874) Fines and Forfeitures 392,206 434,249 (42,043) All Other Revenue 486,779 3,S11,ll5 (3,024,336) Total $46,862,010 $53,348,653 ($6,486,643) General Fund revenues decreased $6,486,643, or approximately 12%, when compared with the previous year. An increase in intergovernmental revenues in the prior year due to funding received from the State and Local Fiscal Recovery Fund, as part of the American Rescue Plan Act resulted in a subsequent decrease in 2022. Increases in income taxes can be attributed to economic expansion at the Hamilton Enterprise Park and due to the Spooky Nook Sports complex. An increase in all other revenue in the prior year due to refunds received from the Ohio Bureau of Worker's Compensation resulted in a subsequent decrease in the current year. 2022 2021 Increase F�penditures Expenditures (Decrease) General Government $13,597,102 $9,279,170 $4,317,932 Security ofPersons and Property 7,364,274 29,181,065 (21,816,791) L,eisure Time Activities 1,600,000 1,530,193 69,807 Community Environment 832,618 640,430 192,188 Basic Utility Services 427,071 312,421 114,650 Debt Service: Principal Retirement 514,351 480,000 34,351 Interest and Fiscal Charges 911,411 922,968 (11,557) Total $25,246,827 $42,346,247 ($17,099,420) General Fund expenditures decreased $17,099,420, or approximately 40% from the prior year. An increase in general government can mostly be attributed to grants made to the Hamilton Community Improvement Corporation. A substantial decrease in security of persons and property was due to police and fire wages and benefits being paid from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF)Fund. Health Department Fund — The City's Health Department Fund remained stable, increasing from a balance of$12,734 to $13,772. Public health expenditures of$1,061,662 were funded by grants, charges for services,licenses and permits, and transfers in from the general fund. - 14 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Fund — The SLFRF Fund reported $25,090,200 in coronavirus relief funding, which was used to pay wages and benefits of police and fire employees. Hamilton Capital Improvement Fund—The City's Capital Improvement Fund balance increased 17% in 2022. Expenditures included outlays for building improvements, infrastructure improvements, and various equipment purchases. An increase in intergovernmental revenues included grants received from the State of Ohio for the construction of a bike trail. Criminal Justice Center Construction Fund— The Criminal Justice Center Construction Fund has a cash balance of$30 million at December 31, 2022 to be used for construction of a new justice center. Funding for the project consisted of$23 million in note proceeds and$8 million of transfer from the General Fund. Other Governmental Funds—The City's Other Governmental Funds reported an increase in fund balance of$7,365,975, or 40%. An increase in intergovernmental revenues can be attributed to Ohio Department of Transportation grants received for various street and traffic improvement projects, which also resulted in an increase in expenditures for capital outlay. Also contributing to increases in intergovernmental revenues were HOME Program grants received for new single family housing construction, which resulted in increased community environment expenditures. Budgetary 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 2021 the City amended its General Fund budget several times. For the General Fund, final budgeted revenues were 7% higher than original estimates due to increases in income taxes. Final estimated receipts and actual budget basis receipts were not materially different. Final appropriations were 31% less than original estimates and actual budget basis expenditures were 9% less than final estimates due to the funding of police and fire wages and benefits from the Coronavirus State and Local Fiscal Recovery Funds Fund. This space intentionally left blank. - 15 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2022, the City had $462,922,542 invested in land, construction in progress, buildings, improvements, infrastructure, and machinery and equipment, net of accumulated depreciation. Of this total, $149,486,004 was related to governmental activities and $313,436,538 to the business-type activities. The following tables show 2022 and 2021 balances: Governmental Increas e Activities (Decrease) 2022 2021 Land $22,895,230 $21,817,381 $1,077,849 Construction In Progress 42,740,049 33,262,556 9,477,493 Buildings and Irnprovements 51,820,171 47,177,381 4,642,790 Leased Buildings 144,726 0 144,726 Machinery and Equipment 36,600,296 34,776,075 1,824,221 L,eased Equipment 211,783 0 2ll,783 Infrastructure 190,404,169 187,138,058 3,266,111 Less:Accumulated Depreciation (195,330,420) (190,854,222) (4,476,198) Totals $149,486,004 $133,317,229 $16,168,775 Land increased due to the purchase of several parcels north of the downtown area. Construction in progress increased due to the construction of several street resurfacing and intersection improvement projects. The Gilmore Ponds recreational trail also began construction as well as a sanitary sewer replacement program. Buildings and improvements increased as a direct result of the completion of a large parking lot near Spooky Nook sports complex. One Renaissance Center also received a roof replacement and new cooling towers. In addition, a new traffic management center was constructed. Machinery and equipment increased due to the purchase of several police cruisers, two firetrucks and an ambulance. Stormwater purchased a backhoe and a dump truck. Streets purchased a snowplow as well as a bobcat. Infrastructure increased due to the completion of Phase II of the Beltline recreational trail which included 3370 feet of paved trail. One of the street resurfacing projects was also completed. - 16 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Business-Type Increase Activities (Decreas e) 2022 2021 L.and $10,815,289 $9,485,792 $1,329,497 Construction in Progress 36,665,651 52,571,081 (15,905,430) Intangible CapitalAssets 1,070,786 1,070,786 0 Buildings and Improvements 137,047,911 132,416,364 4,631,547 Machinery and Equipment 708,242,614 689,095,763 19,146,851 L.ess:Accumulated Depreciation (580,405,713) (566,422,373) (13,983,340) Totals $313,436,538 $318,217,413 ($4,780,875) Land increased due to property purchased by the Electric Fund. The decrease in construction in progress was due to the completion of a new electric substation as well as gas main replacement projects, a water main replacement project and a sanitary sewer relocation. Buildings and improvements increased as a result of the completion of a control house and 138/69 KV structure at the new electric substation and the upgrade of 8 filter beds at the water production facility. Machinery and equipment increased due to the completion of a gas main replacement project, an electric substation, a water main replacement program as well as a sanitary sewer relocation. The gas department also purchased two backhoes and the wastewater department purchased a new vacuum truck. Additional information on the City's capital assets can be found in Note 9. This space intentionally left blank. - 17 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Debt and OtheY Long-TeYm Obligations The following table summarizes the City's debt and other long-term obligations outstanding as of December 31, 2022 and 2021: 2022 2021 Crovernmental Activities: General Obligation Bonds $14,203,421 $14,760,281 Special Obligation Non-TaxRevenue Bonds 31,820,000 31,900,000 Income TaxRevenue Bonds 7,051,861 8,740,092 SpecialAssessment Bonds 15,000 30,000 OWDA Loans 5,830,307 5,394,586 Installment L,oans 22,990,631 23,390,000 Leases Payable 306,303 0 Claims Payable 3,500,000 0 Compensated Absences 4,725,063 4,762,640 Total Governmental Activities 90,442,586 88,977,599 Business-Type Activities: Mortgage Revenue Bonds 106,852,422 112,360,738 General Obligation Bonds 470,000 495,000 OWDA Loans 2,016,234 2,123,373 OPWC Loans 12,604,386 12,123,933 Installment L,oan 252,889 0 Compensated Absences 3,106,704 2,957,125 TotalBusiness-Type Activities 125,302,635 130,060,169 Totals $215,745,221 $219,037,768 Under state law,the City's general obligation bonded debt issues are subject to a legallimitation based on 10.5% of the total assessed value of real and personal property. In addition, the unvoted net debt of municipal corporations cannot exceed 5.5% of the total assessed value of property. At December 31, 2022, the City's outstanding debt was below the legal limit. Additional information on the City's long- term debt can be found in Note 13. - 18 - CITY OF HAMILTON, OHIO Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited ECONOMIC FACTORS The City's Budget and Financial Policies Resolution R2012-6-25 requires the maintenance of a minimum General Fund Balance (reserve) of 10-16% of budgeted expenditures. Per this resolution, if the General Fund reserve rises above 16°/o of General Fund revenues at the fiscal year-end,the amount over 16% may be swept into an Economic Budget Stabilization Fund,which can be expended only through special action by City CounciL The 2022 unencumbered General Fund cash was $9,994,206 (non-GAAP), or 18.56°/o of 2022 qualifying General Fund revenues. In 2022, the City received the second half of the American Rescue and Recovery Plan Act(ARPA) funds, over $16.7 million, and was able to reimburse public safety salaries totaling $25.09 million in 2022. The City was also fortunate that income tax receipts were up 11.17%, or $3,533,687 (all funds) over 2021. The City used a combination of ARPA funds and fund balance to make several strategic expenditures to invest in the City's future. The City budgeted $4.0 million for the construction of a new Fire Station 26, $2.2 million for stormwater system improvements, and approximately $8.0 million (in addition to debt proceeds of$23 million) for the construction of a new criminal justice center. The balance in the City's Economic Budget Stabilization fund was $4,200,000 at December 31,2022. The GFOA recommends governments adopt rigorous policies for all operating funds in order to achieve and maintain a structurally balanced budget. The policy should include parameters for achieving and maintaining structural balance where recurring revenues are equal to or greater than recurring expenditures in the adopted budget. City Council Resolution 2012-6-25 sets forth these policies. The 2023 General Fund Adopted Budget is structurally balanced and the first quarter of 2023 has started out strong. The Spooky Nook Sports Champion Mill project, led by Manheim, PA-based Spooky Nook Sports LLC, opened for business in 2022. The complex includes the largest indoor sports complex in North America, a fitness center, hotel, restaurants,brewery, and the second largest convention space in southwest Ohio. 80 Acres, a vertical organic farming company, officially opened its enormous $30 million-plus indoor farming complex in Hamilton's Enterprise Park. Hamilton is also home to the corporate headquarters of 80 Acres and Infinite Acres located in downtown Hamilton. Requests for Information This financial report is designed to provide our citizens, taxpayers, creditors, investors and elected officials with a general overview of the City's finances and to show accountability for the money it receives. If you have any questions about this report or need additional information, contact the Office of the City of Hamilton Finance Director, 345 High Street, Hamilton, Ohio 45011, (513) 785-7170, or visit the City website at www.hamilton-city.org. - 19 - CITY OF HAMILTON, OHIO Statement of Net Position December 31, 2022 Component Unit Hamilton Governmental Business-Type Total Primary Community Activities Activities Government Authority Assets: Equity in Pooled Cash and Investments $ 89,117,962 $ 73,227,330 $ 162,345,292 $ 0 Cash and Investments 0 0 0 6,655,066 Receivables: Taxes 21,315,778 0 21,315,778 0 Accounts 1,655,424 17,092,532 18,747,956 0 Due From Other Governments 4,313,072 0 4,313,072 0 Interest 59,371 202,539 261,910 185,540 Special Assessments 424,871 0 424,871 0 Loans 32,650,206 0 32,650,206 22,900,000 Leases 4,968,729 178,676 5,147,405 0 Due from Primary Government 0 0 0 34,738,068 Inventory of Supplies at Cost 134,328 2,418,687 2,553,015 0 Prepaid Items 331,770 1,081,502 1,413,272 0 Restricted Assets: Cash and Investments 7,000,000 11,089,133 18,089,133 0 Cash with Fiscal Agent 1,741,317 0 1,741,317 0 Net OPEB Asset 2,242,753 4,061,359 6,304,112 0 Non-Depreciable Capital Assets 65,635,279 47,480,940 113,116,219 0 Depreciable Capital Assets,Net 83,850,725 265,955,598 349,806,323 0 Total Assets 315,441,585 422,788,296 738,229,881 64,478,674 Deferred Outflows of Resources: Deferred Charge on Debt Refunding 96,462 1,008,026 1,104,488 0 Pension 19,094,995 4,821,866 23,916,861 0 OPEB 4,934,758 148,218 5,082,976 0 TotalDeferredOutFlowsofResources 24,126,215 5,978,110 30,104,325 0 Liabilities: Accounts Payable 3,407,939 7,492,303 10,900,242 0 Accrued Wages and Benefits 2,782,159 1,167,643 3,949,802 0 Intergovernmental Payable 931,221 353,481 1,284,702 0 Payroll WithholdingPayable 672,989 0 672,989 0 Claims Payable 1,271,174 0 1,271,174 0 Due to Others 2,437,785 0 2,437,785 0 Accrued Liabilities 133,968 1,237 135,205 0 Customer Deposits 4,270 2,833,949 2,838,219 0 Due to Hamilton Community Authority 2,091,540 0 2,091,540 0 Accrued lnterest Payable 842,916 980,783 1,823,699 569,638 General Obligation Notes Payablc 31,450,000 3,300,000 34,750,000 0 L,ong-Term Liabilities: Due Within One Year 4,785,481 7,542,486 12,327,967 1,205,000 Due in M ore Than One Year: Net Pension Liability 52,273,849 11,017,193 63,291,042 0 Net OPEB Liability 8,103,849 0 8,103,849 0 Total OPEB Liability 250,551 1,002,204 1,252,755 0 Other Amounts Due in More Than One Year 85,657,105 ll7,760,149 203,417,254 100,083,402 Total Liabilities 197,096,796 153,451,428 350,548,224 101,858,040 (Continued) -2� - CITY OF HAMILTON, OHIO Statement of Net Position December 31, 2022 Component Unit Hamilton Governmental Business-Type Total Primary Community Activities Activities Government Authority Deferred Inflows of Resources: Property Ta�c L,evy for Next Fiscal Year 9,921,277 0 9,921,277 0 Leases 4,968,729 178,676 5,147,405 0 Pension 22,279,154 13,346,177 35,625,331 0 OPEB 5,355,927 4,440,585 9,796,512 0 Total Deferredlnflows ofResources 42,525,087 17,965,438 60,490,525 0 Net Position: Net Investment in Capital Assets 107,664,999 192,960,925 300,625,924 0 Restricted For: Debt Service 0 2,089,133 2,089,133 0 CapitalProjects 215,841 0 215,841 0 Community Environment 502,295 0 502,295 0 General Government 709,727 0 709,727 0 Public Health and Welfare Services 70,621 0 70,621 0 Security ofPersons andProperty 11,859,182 0 11,859,182 0 Streets 4,711,368 0 4,7ll,368 0 None�endable Endowments 75,325 0 75,325 0 ChampionsMillInter-creditorAgreement 7,000,000 0 7,000,000 0 Rate Stabilization 0 9,000,000 9,000,000 0 Unrestricted(Deficit) (32,863,441) 53,299,482 20,436,041 (37,379,366) Total Net Position $ 99,945,917 $ 257,349,540 $ 357,295,457 $ (37,379,366) See accompanyingnotes to the basic fmancial statements -21 - CITY OF HAMILTON, OHIO Statement of Activities For the Year Ended December 31, 2022 Program Revenues Chargesfar OperatingGrants CapitalGrants Services and and and Expenses Sales Contributions Contributions Governmental Activities: General Government $ 18,470,115 $ 5,585,668 $ 0 $ 0 Security of Persons and Property 36,180,916 3,045,715 26,354,391 0 L,eisure Time Activities 2,063,074 18,403 0 0 Community Environment 3,792,757 455,952 2,944,201 0 Basic Utility Services 6,681,915 8,129,162 0 0 Transpartation 6,256,765 1,316,043 3,437,940 10,589,705 Public Health and Welfare Services 846,360 250,886 559,412 0 Interest and Fiscal Charges 2,815,851 0 0 0 Total Governmental Activities 77,107,753 18,801,829 33,295,944 10,589,705 Business-Type Activities: Gas Utility 20,191,885 19,230,682 0 0 Electric Utility 77,236,352 86,535,081 0 0 Water Utility 15,504,942 14,959,968 0 0 Wastewater Utility 11,865,791 13,002,156 0 0 Total Business-Type Activities 124,798,970 133,727,887 0 0 Total Primary Government $ 201,906,723 $ 152,529,716 $ 33,295,944 $ 10,589,705 Component Unit: Hamilton Community Authority $ 15,025,056 $ 1,128,822 $ 2,140,369 $ 0 General Revenues and Transfers Property Taxes Levied for: General Purposes Special Purposes Cap ital Purp os es Income Tax Other Local Taxes Intergovernmental,Unrestricted Investment Earnings M iscellaneous Transfers Total General Revenues and Transfers Change in Net Position Net Position Beginning of Year Net Position End of Year See accompanying notes to the basic financial statements -22 - CITY OF HAMILTON, OHIO Statement of Activities For the Year Ended December 31, 2022 Net(E�ense)Revenue Component and Changes in Net Position Unit Hamilton Governmental Business-Type Community Activities Activities Total Authority $ (12,884,447) $ 0 $ (12,884,447) (6,780,810) 0 (6,780,810) (2,044,671) 0 (2,044,671) (392,604) 0 (392,604) 1,447,247 0 1,447,247 9,086,923 0 9,086,923 (36,062) 0 (36,062) �z,sls,ssi� o �z,gls,ssi� �14,4ao,a�s� o �i4,4ao,a�s� 0 (961,203) (961,203) 0 9,298,729 9,298,729 0 (544,974) (544,974) 0 1,136,365 1,136,365 0 8,928,917 8,928,917 $ (14,420,275) $ 8,928,917 $ (5,491,358) $ (11,755,865) 2,669,804 0 2,669,804 0 6,883,131 0 6,883,131 0 1,517,175 0 1,517,175 0 36,761,592 0 36,761,592 0 3,282,213 0 3,282,213 0 3,240,413 0 3,240,413 0 (1,819,798) (1,227,350) (3,047,148) 87,181 1,383,805 0 1,383,805 0 (995,000) 995,000 0 0 52,923,335 (232,350) 52,690,985 87,181 38,503,060 8,696,567 47,199,627 (11,668,684) 61,442,857 248,652,973 310,095,830 (25,710,682) $ 99,945,917 $ 257,349,540 $ 357,295,457 $ (37,379,366) -23 - CITY OF HAMILTON, OHIO Balance Sheet Governmental Funds December 31, 2022 Health General Department SLFRF Assets: Equity in Pooled Cash and Inveshnents $ 20,807,955 $ 13,772 $ 708,342 Receivables: Taxes 9,150,897 0 0 Accounts 478,168 0 0 Intergovernmental 2,061,462 0 0 Interest 39,897 0 0 Special Assessments 0 0 0 Loans 1,480,000 0 0 Leases 4,908,155 0 0 Interfund Receivable 2,413,104 0 0 Inventary of Supplies,at Cost 67,335 0 0 Prepaid Items 285,249 0 0 Restricted Assets: Cash and Cash Equivalents 7,000,000 0 0 Cash and Cash Equivalents with Fiscal Agent 1,741,317 0 0 Total Assets $ 50,433,539 $ 13,772 $ 708,342 Liabilities: Accounts Payable $ 1,555,144 $ 0 $ 0 Accrued Wages and Benefits Payable 2,162,720 0 374,623 Intergovernmental Payable 484,399 0 333,719 Payroll Withholding Payable 672,989 0 0 Claims Payable 1,621,174 0 0 Due to Others 0 0 0 Accrued Liabilities 103,825 0 0 Customer Deposits 0 0 0 Interfund Payable 0 0 0 Due to Hamilton Community Autharity 0 0 0 Accrued Interest Payable 0 0 0 General Obligation Notes Payable 0 0 0 Total Liabilities 6,600,251 0 708,342 -24 - CITY OF HAMILTON, OHIO Balance Sheet Governmental Funds December 31, 2022 Criminal7ustice Other Total Hamilton Capital Center Governmental Governmental Improvement Construction Funds Funds Assets: Equity in Pooled Cash and Investments $ 7,688,768 $ 30,188,172 $ 29,674,700 $ 89,081,709 Receivables: Taxes 786,972 0 11,377,909 21,315,778 Accounts 0 0 1,177,256 1,655,424 Intergovernmental 0 0 2,251,610 4,313,072 Interest 0 0 19,474 59,371 SpecialAssessments 0 0 424,871 424,871 Loans 27,609,528 0 3,560,678 32,650,206 Leases 0 0 60,574 4,968,729 Interfund Receivable 0 0 0 2,413,104 Inventory of Supplies, at Cost 0 0 24,593 91,928 Prepaid Items 0 0 46,521 331,770 Restricted Assets: Cash and Cash Equivalents 0 0 0 7,000,000 Cash and Cash Equivalents with Fiscal Agent 0 0 0 1,741,317 Total Assets $ 36,085,268 $ 30,188,172 $ 48,618,186 $ 166,047,279 Liabilities: Accounts Payable $ 236,853 $ 14,000 $ 1,423,911 $ 3,229,908 Accrued Wages and Benefits Payable 0 0 187,655 2,724,998 Intergovernmental Payable 0 0 91,495 909,613 Payroll Withholding Payable 0 0 0 672,989 Claims Payable 0 0 0 1,621,174 Due to Others 2,437,785 0 0 2,437,785 Accrued Liabilities 13,397 0 16,746 133,968 Customer Deposits 0 0 4,270 4,270 Interfund Payable 0 0 2,119,256 2,119,256 Due to Hamilton Community Authority 0 0 2,091,540 2,091,540 Accrued Interest Payable 556 5,1 ll 1,322 6,989 General Obligation Notes Payable 2,500,000 23,000,000 5,950,000 31,450,000 Total Liabilities 5,188,591 23,019,1ll 11,886,195 47,402,490 (Continued) -25 - CITY OF HAMILTON, OHIO Balance Sheet Governmental Funds December 31, 2022 Health General Department SLFRF Deferred Inflows of Resources: Unavailable Amounts 4,055,565 0 0 Property Tax Levy for Next Fiscal Year 2,666,638 0 0 Leases 4,908,155 0 0 Total Deferred Inflows of Resources 11,630,358 0 0 Fund Balance: Nonspendable 388,893 0 0 Restricted 7,000,000 13,772 0 Committed 0 0 0 Assigned 6,292,751 0 0 Unassigned 18,521,286 0 0 Total Fund Balance 32,202,930 13,772 0 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 50,433,539 $ 13,772 $ 708,342 -26 - CITY OF HAMILTON, OHIO Balance Sheet Governmental Funds December 31, 2022 Criminal Justice Other Total Hamilton Capital Center Governmental Governmental Improvement Construction Funds Funds Deferred Inflows of Resources: Unavailable Amounts 376,833 0 3,486,197 7,918,595 Property Tax Levy far Next Fiscal Year 0 0 7,254,639 9,921,277 Leases 0 0 60,574 4,968,729 Total Deferred Inflows of Resources 376,833 0 10,801,410 22,808,601 Fund Balance: Nonspendable 0 0 146,114 535,007 Restricted 30,519,844 0 15,714,560 53,248,176 Committed 0 0 3,777,156 3,777,156 Assigned 0 7,169,061 8,293,185 21,754,997 Unassigned 0 0 (2,000,434) 16,520,852 Total Fund Balance 30,519,844 7,169,061 25,930,581 95,836,188 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 36,085,268 $ 30,188,172 $ 48,618,186 $ 166,047,279 See accompany�g notes to the basic fmancial statements -27 - CITY OF HAMILTON, OHIO Reconciliation Of Total Governmental Fund Balances To Net Position Of Governmental Activities December 31, 2022 Total Governmental Fund Balances $ 95,836,188 Amounts reported for governmental activities in the statement of net position are different because Capital Assets used in governmental activities are not resources and therefore are not reparted in the funds. 149,329,336 Other long-term assets are not available to pay for current- period expenditures and therefore are deferred in the funds. 7,918,595 The net pension and OPEB liabilities are not due and payable in the current period,and the net OPEB asset is not an expendable financial resource; therefore,the liabilities/asset and related deferred inflows/outflows are not reported in the governmental funds. Deferred Outflows-Pension 18,905,310 Deferred Inflows-Pension (21,754,137) Net Pension Liabiliry (51,840,451) Deferred Outflows-OPEB 4,933,587 Deferred Inflows-OPEB (5,190,855) Net OPEB Liability (8,103,849) Net OPEB Asset 2,082,987 Total OPEB Liability (250,551) (61,217,959) Internal service funds are used by management to charge back costs of services to individual funds.The assets,liabilities, and deferred outflows/inflows of the Fleet Maintenance Fund are included in governmental activities in the statement of net position. (1,223,011) Long-term liabilities,including bonds payable,are not due and payable in the current period and therefore are not reported in the funds. Deferred Loss on Refunding 96,462 General Obligation Bonds Payable (13,950,000) Special Obligation Non-Tax Revenue Bonds Payable (31,820,000) Special Assessment Bonds Payable (15,000) Bond Premium (253,421) Income Tax Revenue Bonds (7,051,861) Ohio Water Development Authoriry Loans (5,830,307) Installment Loans Payable (22,990,631) Leases Payable (306,303) Claims Payable (3,150,000) Compensated Absences Payable (4,590,244) Accrued Interest Payable (835,927) (90,697,232) Net Position of Governmental Activities $ 99,945,917 See accompanying notes to the basic financial statements -28 - CITY OF HAMILTON, OHIO ,,,.;;� :,,:._..� i : ,��-'-' � ,;-� ;:= � '� �� r;: :: � � � �.� -� �. . � ��s� -29 - CITY OF HAMILTON, OHIO Statement Of Revenues, Expenditures And Changes In Fund Balances Governmental Funds For The Year Ended December 31, 2022 Health General Department SLFRF Revenues: IncomeTaYes $ 28,199,086 $ 0 $ 0 Property and Other Local Taxes 5,866,186 0 0 Intergovernmental Revenues 4,234,620 419,504 25,090,200 Charges far Services 6,603,077 239,182 0 Licenses and Permits 1,139,735 136,104 0 Investment Earnings (59,679) (229) 17,517 Special Assessments 0 0 0 Fines and Forfeitures 392,206 0 0 All Other Revenue 486,779 1,537 0 Total Revenues 46,862,010 796,098 25,107,717 Expenditures: Current: General Government 13,597,102 0 0 Security of Persons and Property 7,364,274 0 25,090,200 Leisure Time Activities 1,600,000 0 0 Community Environment 832,618 0 0 Basic Utility Services 427,071 0 0 Transp ortation 0 0 0 Public Health and Welfare Services 0 1,061,662 0 Cap ital Outlay 0 0 0 Debt Service: Principal Retirement 514,351 0 0 Interest and Fiscal Charges 911,411 0 0 Total F.�cpenditures 25,246,827 1,061,662 25,090,200 Excess(Deficiency)of Revenues Over(Under)Expenditares 21,615,183 (265,564) 17,517 - 30 - CITY OF HAMILTON, OHIO Statement Of Revenues, Expenditures And Changes In Fund Balances Governmental Funds For The Year Ended December 31, 2022 Hamilton Criminal Justice Other Total Capital Center Governmental Governmental Improvement Construction Funds Funds Revenues: IncomeTaxes $ 3,620,149 $ 0 $ 4,525,188 $ 36,344,423 Property and Other L,ocal Ta�ces 0 0 8,448,309 14,314,495 Intergovernmental Revenues 5,708,1 ll 0 ll,750,134 47,202,569 Charges for Services 0 0 8,862,226 15,704,485 Licenses and Permits 0 0 687,469 1,963,308 Investment Earnings (208,088) (813,348) (755,971) (1,819,798) Special Assessments 0 0 518,976 518,976 Fines and Forfeitures 0 0 269,321 661,527 All Other Revenue 82,862 182,141 630,486 1,383,805 Total Revenues 9,203,034 (631,207) 34,936,138 116,273,790 Espenditures: Current: General Government 0 0 214,628 13,811,730 Security of Persons and Property 0 0 3,814,055 36,268,529 L,eisure Time Activities 0 0 190,142 1,790,142 Community Environment 0 0 4,233,884 5,066,502 Basic Utility Services 0 0 9,002,412 9,429,483 Transportation 0 0 7,258,075 7,258,075 Public Health and Welfare Services 0 0 0 1,061,662 Cap ital Outlay 4,987,237 149,571 ll,665,577 16,802,385 Debt Service: Principal Retirement 25,855 0 2,502,151 3,042,357 Interest and Fiscal Charges 18,363 119,641 1,747,419 2,796,834 Total Expenditures 5,031,455 269,212 40,628,343 97,327,699 Excess(Deficiency)of Revenues Over(Under)E�enditures 4,171,579 (900,419) (5,692,205) 18,946,091 (Continued) - 31 - CITY OF HAMILTON, OHIO Statement Of Revenues, Expenditures And Changes In Fund Balances Governmental Funds For The Year Ended December 31, 2022 Health General Department SLFRF Other Financing Sources(Uses): Sale of Capital Assets 4,902 0 0 OWDA Loans Issued 0 0 0 Installment Loan Issuance 0 0 0 LeaseIssuance 144,726 0 0 Transfers In 0 266,602 0 Transfers Out (21,810,391) 0 0 Total Other Financing Sources(Uses) (21,660,763) 266,602 0 Net Change in Fund Balance (45,580) 1,038 17,517 Fund Balance at Beginning of Year 32,240,042 12,734 (17,517) Increase(Decrease)in Inventary 8,468 0 0 Fund Balance End of Year $ 32,202,930 $ 13,772 $ 0 - 32 - CITY OF HAMILTON, OHIO Statement Of Revenues, Expenditures And Changes In Fund Balances Governmental Funds For The Year Ended December 31, 2022 Hamilton Criminal Justice Other Total Capital Center Governmental Governmental Improvement Construction Funds Funds OtherFinancing Sources(Uses): Sale of Capital Assets 218 0 14,510 19,630 OWDA Loans Issued 0 0 564,711 564,711 Installment Loan Issuance 0 0 150,561 150,561 Lease Issuance 211,783 0 0 356,509 Transfers In 2,799,503 8,069,480 14,201,663 25,337,248 Transfers Out (2,694,531) 0 (1,827,326) (26,332,248) Total Other Financing Sources(Uses) 316,973 8,069,480 13,104,119 96,411 Net Change in Fund Balance 4,488,552 7,169,061 7,411,914 19,042,502 Fund Balance at Beginning of Year 26,031,292 0 18,564,606 76,831,157 Increase(Decrease)in Inventory 0 0 (45,939) (37,471) Fund Balance End of Year $ 30,519,844 $ 7,169,061 $ 25,930,581 $ 95,836,188 See accompanying notes to the basic financial statements - 33 - CITY OF HAMILTON, OHIO Reconciliation of the Statement Of Revenues, Expenditures And Changes In Fund Balances of Governmental Funds To The Statement of Activities For The Year Ended December 31, 2022 Net Change in Fund Balances-Total Governmental Funds $ 19,042,502 Amounts reported for governmental activities in the statement of activities are different because Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. Capital Outlay 20,805,025 Depreciation Expense (4,617,936) 16,187,089 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 332,023 Contractually required contributions are reported as expenditures in governmental funds;however,the statement of net position reports these amounts as deferred outflows: Pension 5,511,439 OPEB 99,435 5,610,874 Except for amounts reported as deferred inflows/outflows,changes in the net pension and OPEB liabilities/assets are reported as pension/OPEB expense in the statement of activities: Pension (2,572,731) OPEB 888,773 (1,683,958) The issuance of long-term debt provides current financial resources to governmental funds,however,has no effect on net position. Installment Loan Issued (150,561) Lease Issuance (356,509) Ohio Water Development Authority Loan Issuance (564,711) (1,071,781) Repayment of bond and loan principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the statement of net position. General Obligation Bond Principal Payment 530,000 Special Obligation Non-Tax Revenue Bond Principal Payment 80,000 Special Assessment Bond Principal Payment 15,000 Income Tax Revenue Bond Principal Payment 1,688,231 OWDA Loan Principal Payment 128,990 Installment Loan Principal Payment 549,930 Lease Principal Payment 50,206 Change in Deferred Loss on Refunding (32,155) Change in Bond Premium/Discount 26,860 3,037,062 (Continued) - 34 - CITY OF HAMILTON, OHIO Reconciliation of the Statement Of Revenues, Expenditures And Changes In Fund Balances of Governmental Funds To The Statement of Activities For The Year Ended December 31, 2022 In the statement of activities,interest is accrued on outstanding bonds,whereas in governmental funds,an interest expenditure is reported when due. (13,722) Some expenses reported in the statement of activiries do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Compensated Absences 62,854 Claims Payable (3,150,000) Change in Inventory (37,471) (3,124,617) Internal Service Funds are used by management to charge costs to individual funds and are not reported in the statement of activities. Govemmental fund expenditures and related internal service revenues are eliminated. The net revenue(expense)of the Fleet Maintenance Fund is allocated among the governmental activities. 187,588 Change in Net Position of'Governmental Activities $ 38,503,060 See accompanying notes to the basic financial statements - 35 - CITY OF HAMILTON, OHIO Statement of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) General Fund For the Year Ended December 31, 2022 Variance with Final Budget Original P ositive Budget Final Budget Actual (Negative) Revenues: Income Taxes $ 23,157,500 $ 26,677,284 $ 26,897,229 $ 219,945 Property and Other Local Taxes 5,725,000 5,725,000 5,876,346 151,346 Intergovernmental Revenues 2,737,400 2,838,822 3,746,913 908,091 Charges for Services 17,207,207 17,207,207 14,353,546 (2,853,661) Licenses and Permits 1,062,570 1,062,570 1,275,839 213,269 Investment Earnings 202,500 202,500 606,845 404,345 Fines and Forfeitures 421,318 421,318 388,862 (32,456) All Other Revenue 326,525 326,525 337,866 11,341 Total Revenues 50,840,020 54,461,226 53,483,446 (977,780) Expenditures: Current Security of Persons and Property 34,621,044 10,603,320 8,831,602 1,771,718 Public Health and Welfare Services 1,338,723 1,238,804 1,044,892 193,912 Community Environment 1,296,889 1,428,965 1,222,361 206,604 Basic Utility Services 1,518,777 1,577,415 1,508,949 68,466 General Government 13,960,831 21,525,922 20,542,499 983,423 TotalEapenditures 52,736,264 36,374,426 33,150,303 3,224,123 Excess(Deficiency)of Revenues Over(Under)Expenditures (1,896,244) 18,086,800 20,333,143 2,246,343 Other�nancing Sources(Uses): Sale of Capital Assets 0 0 4,902 4,902 Transfers Out (1,010,452) (23,282,025) (21,543,789) 1,738,236 Total Other Financing Sources(Uses): (1,010,452) (23,282,025) (21,538,887) 1,743,138 Net Change in Fund Balance (2,906,696) (5,195,225) (1,205,744) 3,989,481 Fund Balance at Beginning of Year 8,293,254 8,293,254 8,293,254 0 Prior Year Encumbrances 2,906,696 2,906,696 2,906,696 0 Fund Balance at End of Year $ 8,293,254 $ 6,004,725 $ 9,994,206 $ 3,989,481 See accompanying notes to the basic financial statements - 36 - CITY OF HAMILTON, OHIO Statement of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Special Revenue Fund—Health Department Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Investment Earnings $ 70 $ 70 $ 134 $ 64 All Other Revenue 1,425 1,425 1,537 112 Total Revenues 1,495 1,495 1,671 176 Expenditures: Current Public Health and Welfare Services 500 500 270 230 Total Expenditures 500 500 270 230 Net Change in Fund Balance 995 995 1,401 406 Fund Balance at Beginning of Year 12,761 12,761 12,761 0 Fund Balance at End of Year $ 13,756 $ 13,756 $ 14,162 $ 406 See accompanying notes to the basic financial statements - 37 - CITY OF HAMILTON, OHIO Statement of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Special Revenue Fund—Coronavirus State and Local Fiscal Recovery(SLFRF) Funds For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental Revenues $ 0 $ 16,795,100 $ 16,795,100 $ 0 Total Revenues 0 16,795,100 16,795,100 0 Expenditures: Current: Security of Persons and Property 8,295,100 25,090,200 25,090,200 0 TotalExpenditures 8,295,100 25,090,200 25,090,200 0 Net Change in Fund Balance (8,295,100) (8,295,100) (8,295,100) 0 Fund Balance at Beginning of Year 8,295,100 8,295,100 8,295,100 0 Fund Balance at End of Year $ 0 $ 0 $ 0 $ 0 See accompanying notes to the basic financial statements - 38 - CITY OF HAMILTON, OHIO ,,,.;;� :,,:._..� i : ,��-'-' � ,;-� ;:= � '� �� r;: :: � � � �.� -� �. . � ��s� - 39 - CITY OF HAMILTON, OHIO Statement of Net Position Proprietary Funds December 31, 2022 Business-Type Activities Enterprise Funds Gas Electric Water Assets: Current Assets: Equity in Pooled Cash and Investments $ 3,064,039 $ 47,560,801 $ 7,558,178 Restricted Cash and Investments 2,000,000 4,699,203 1,517,952 Receivables: Accounts 3,381,572 9,788,307 2,075,659 Interest 8,363 131,906 20,821 Leases 0 42,682 0 Inventory of Supplies at Cost 197,476 1,815,143 404,070 Prepaid Items 165,224 672,687 153,798 Total Current Assets 8,816,674 64,710,729 11,730,478 Noncurrent Assets: Leases Receivable 0 135,994 0 Net OPEB Asset 421,801 1,891,521 607,701 Non Depreciable Capital Assets 2,907,539 26,518,188 9,068,165 Depreciable Capital Assets,Net 28,595,540 98,656,133 87,862,871 TotalNoncurrentAssets 31,924,880 127,201,836 97,538,737 Total Assets 40,741,554 191,912,565 109,269,215 Deferred Outflows of Resources: Deferred Charge on Debt Refunda�g 148,805 276,337 431,403 Pension 500,784 2,245,717 721,491 OPEB 32,744 43,315 34,199 Total Deferred Outflows of Resources 682,333 2,565,369 1,187,093 Liabilities: Current Liabilities: Accounts Payable 1,606,819 4,758,269 654,373 Accrued Wages and Benefits 122,639 532,101 180,665 IntergovernmentalPayable 37,143 163,265 54,301 Accrued Liabilities-Current 0 1,237 0 Customer Deposits Payable 636,542 1,695,531 241,870 Interfund Payable 0 0 0 Compensated Absences Payable-Current 199,870 734,477 312,041 AccruedInterestPayable 26,857 360,116 237,579 General Obligation Notes Payable 0 0 0 General Obligation Bonds Payable-Current 0 0 0 Revenue Bonds Payable-Current 655,000 1,355,000 970,000 Installment Loan Payable-Current 0 0 0 OWDA Loans Payable-Current 0 0 43,811 OPWC Loans Payable-Current 0 0 249,407 Total Current Liabilities 3,284,870 9,599,996 2,944,047 -40 - CITY OF HAMILTON, OHIO Statement of Net Position Proprietary Funds December 31, 2022 Governmental Activities- Internal Service Wastewater Total Funds Assets: Current Assets: Equity in Pooled Cash and Investments $ 14,928,814 $ 73,111,832 $ 151,751 Restricted Cash and Investments 2,871,978 11,089,133 0 Receivables: Accounts 1,846,994 17,092,532 0 Interest 41,449 202,539 0 Leases 0 42,682 0 Inventory of Supplies at Cost 1,998 2,418,687 42,400 Prepaid Items 89,793 1,081,502 0 Total Current Assets 19,781,026 105,038,907 194,151 Noncurrent Assets: Leases Receivable 0 135,994 0 Net OPEB Asset 429,005 3,350,028 871,097 Non Depreciable Capital Assets 8,987,048 47,480,940 0 Depreciable Capital Assets,Net 50,841,054 265,955,598 156,668 Total Noncurrent Assets 60,257,107 316,922,560 1,027,765 Total Assets 80,038,133 421,961,467 1,221,916 Deferred Outflows of Resources: Deferred Charge on Debt Refunding 151,481 1,008,026 0 Pension 509,339 3,977,331 1,034,220 OPEB 32,966 143,224 6,165 Total Deferred Outflows of Resources 693,786 5,128,581 1,040,385 Liabilities: Current Liabilities: Accounts Payable 283,342 7,302,803 367,531 Accrued Wages and Benefits 133,000 96A,405 256,399 IntergovernmentalPayable 38,160 292,869 82,220 Accrued Liabilities-Current 0 1,237 0 Customer Deposits Payable 260,006 2,833,949 0 Interfund Payable 0 0 293,848 Compensated Absences Payable-Current 257,566 1,503,954 337,639 Accrued Interest Payable 356,231 980,783 0 General Obligation Notes Payable 3,300,000 3,300,000 0 General Obligation Bonds Payable-Current 25,000 25,000 0 Revenue Bonds Payable-Current 2,085,000 5,065,000 0 Installment Loan Payable-Current 124,913 124,913 0 OWDA Loans Payable-Current 56,195 100,006 0 OPWC Loans Payable-Current 201,413 450,820 0 Total Current Liabilities 7,120,826 22,949,739 1,337,637 (Conta�ued) -41 - CITY OF HAMILTON, OHIO Statement of Net Position Proprietary Funds December 31, 2022 Business-Type Activities Enterprise Funds Gas Electric Water General Obligation Bonds Payable 0 0 0 Installment Loans Payable 0 0 0 Revenue Bonds Payable 3,865,000 37,151,739 27,131,772 OWDA Loans Payable 0 0 678,446 OPWC Loans Payable 0 0 6,737,673 Compensated Absences Payable 120,226 595,984 254,114 NetPensionLiability 1,144,212 5,131,104 1,648,494 Total OPEB Liability 250,551 250,551 250,551 TotalNoncurrentLiabilities 5,379,989 43,129,378 36,701,050 Total Liabilities 8,664,859 52,729,374 39,645,097 Deferred Inflows of Resources: Leases 0 178,676 0 Pension 1,386,091 6,215,802 1,996,978 OPEB 496,900 2,015,421 688,971 Total Deferred Inflows of Resources 1,882,991 8,409,899 2,685,949 Net Position: Net Investment in Capital Assets 27,126,857 88,839,344 61,316,554 Restricted for Debt Service 0 699,203 517,952 Restricted far Rate Stabilization 2,000,000 4,000,000 1,000,000 Unrestricted 1,749,180 39,800,114 5,290,756 TotalNetPosition $ 30,876,037 $ 133,338,661 $ 68,125,262 -42 - CITY OF HAMILTON, OHIO Statement of Net Position Proprietary Funds December 31, 2022 Governmental Activiries- Internal Service Wastewater Total Funds General Obligation Bonds Payable 445,000 445,000 0 Installment Loans Payable 127,976 127,976 0 Revenue Bonds Payable 33,638,911 101,787,422 0 OWDA Loans Payable 1,237,782 1,916,228 0 OPWC Loans Payable 5,415,893 12,153,566 0 Compensated Absences Payable 208,096 1,178,420 221,510 Net Pension Liability 1,163,756 9,087,566 2,363,025 Total OPEB Liability 250,551 1,002,204 0 Total Noncurrent Liabilities 42,487,965 127,698,382 2,584,535 Total Liabilities 49,608,791 150,648,121 3,922,172 Deferred Inflows of Resources: Leases 0 178,676 0 Pension 1,409,768 11,008,639 2,862,555 OPEB 504,343 3,705,635 900,022 Total Deferred Inflows of Resources 1,914,111 14,892,950 3,762,577 Net Position: Net Investment in Capital Assets 15,678,170 192,960,925 156,668 Restricted for Debt Service 871,978 2,089,133 0 Restricted for Rate Stabilization 2,000,000 9,000,000 0 Unrestricted 10,658,869 57,498,919 (5,579,ll6) Total Net Position $ 29,209,017 $ 261,548,977 $ (5,422,448) Adjustment to reflect the consolidation of internal service fund activities related to the enterprise funds. (4,199,437) Net Position of Business-type Activities $ 257,349,540 See accompanying notes to the basic fmancial statements -43 - CITY OF HAMILTON, OHIO Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended December 31, 2022 Business-Type Activities Enterprise Funds Gas Electric Water Operating Revenues: Charges for Services $ 19,228,377 $ 84,975,151 $ 14,757,186 Other Operating Revenues 2,305 1,559,930 202,782 Total Operating Revenues 19,230,682 86,535,081 14,959,968 Operating Expenses: PersonalServices 2,207,940 6,173,236 2,898,931 Contractual Services 1,394,134 7,540,757 3,062,614 Materials and Supplies 231,746 1,434,151 1,771,484 Purchase of Gas and Electric 9,985,353 50,839,569 0 Depreciation 2,177,482 7,422,962 3,390,283 OtherOperatingE�penses 4,009,082 4,002,139 3,119,347 Total Operating Expenses 20,005,737 77,412,814 14,242,659 Operating Income(Loss) (775,055) 9,122,267 717,309 Non-Operating Revenue(Expenses): Interest Income (61,737) (780,023) (119,977) Interest and Fiscal Charges (165,605) (1,308,798) (1,017,154) Loss on Disposal of Capital Assets (20,543) (45,598) (245,129) Total Non-Operating Revenues(Expenses) (247,885) (2,134,419) (1,382,260) Income(Loss)Before Transfers (1,022,940) 6,987,848 (664,951) Transfers: Transfers In 150,000 10,000 835,000 Total Transfers 150,000 10,000 835,000 Change in Net Position (872,940) 6,997,848 170,049 Net Position Beginning of Year 31,748,977 126,340,813 67,955,213 Net Position End of Year $ 30,876,037 $ 133,338,661 $ 68,125,262 -44 - CITY OF HAMILTON, OHIO Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended December 31, 2022 Governmental Activities- Internal Service Wastewater Total Funds Operating Revenues: Charges for Services $ 12,959,477 $ 131,920,191 $ 12,247,618 Other Operating Revenues 42,679 1,807,696 43,678 Total Operating Revenues 13,002,156 133,727,887 12,291,296 Operating Expenses: Personal Services 2,071,723 13,351,830 3,937,440 Contractual Services 2,592,694 14,590,199 4,227,650 Materials and Supplies 318,294 3,755,675 2,132,882 Purchase of Gas and Electric 0 60,824,922 0 Depreciation 2,809,018 15,799,745 18,314 Other Operating Expenses 2,921,690 14,052,258 256,124 Total Operating Expenses 10,713,419 122,374,629 10,572,410 Operating Income(Loss) 2,288,737 11,353,258 1,718,886 Non-Operating Revenue(Expenses): Interest Income (265,613) (1,227,350) (440) Interest and Fiscal Charges (1,152,372) (3,643,929) 0 Loss on Disposal of Capital Assets 0 (311,270) 0 Total Non-Operating Revenues(Expenses) (1,417,985) (5,182,549) (440) Income(Loss)Before Transfers 870,752 6,170,709 1,718,446 Transfers: Transfers In 0 995,000 0 Total Transfers 0 995,000 0 Change in Net Position 870,752 7,165,709 1,718,446 Net Position Beginning of Year 28,338,265 254,383,268 (7,140,894) Net Position End of Year $ 29,209,017 $ 261,548,977 $ (5,422,448) Change in Net Position-Total Enterprise Funds $ 7,165,709 Adjustment to reflect the consolidation of internal service fund activities related to the enterprise funds. 1,530,858 Change in Net Position-Business-type Activities $ 8,696,567 See accompanying notes to the basic fmancial statements -45 - CITY OF HAMILTON, OHIO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2022 Business Type Activities Enterprise Funds Gas Electcic Water Cash Flows from Operating Activities: CashReceivedfromCustomers $18,784,566 $85,269,631 $14,487,317 Cash Payments for Goods and Services (15,221,526) (62,326,848) (8,058,059) CashPaymentstoEmployees (2,813,152) (ll,909,899) (4,006,501) Net Cash Provided(Used)by Operating Activities 749,888 11,032,884 2,422,757 Cash Flows from Noncapital Financing Activities: Kilowatt Hour Tax Received 0 2,371,076 0 Kilowatt Hour Tax Paid to State 0 (2,371,076) 0 Transfers In from Other Funds 150,000 10,000 835,000 Advances In from Other Funds 0 0 0 Advances Out to Other Funds 0 0 0 Net Cash Provided by Noncapital Financing Activities 150,000 10,000 835,000 Cash Flows from Capital and Related Financing Activities: General Obligation Bond Principal Retirement 0 0 0 Note Proceeds 0 0 0 Premium on Debt Issuance 0 0 0 Revenue Bond Principal Retirement (635,000) (1,285,000) (945,000) OPWC Loan Proceeds 0 0 22,134 OWDA I,oan Principal Retirement 0 0 (43,235) OPWC Loan Principal Retirement 0 0 (214,052) Installment Loan Principal Retirement 0 0 0 InterestandFiscalCharges (139,134) (1,471,050) (1,120,874) Acquisition and Construction ofAssets (1,609,878) (6,623,173) (1,971,857) Net Cash Used by Capital and Related Financing Activities (2,384,012) (9,379,223) (4,272,884) Cash Flows from Investin,g Activities: Receipts of Interest 62,982 489,700 88,922 Change in the Fair Value of Investments (127,583) (1,345,617) (219,320) Net Cash Used by Investing Activities (64,601) (855,917) (130,398) Net Increase(Decrease)in Cash and Cash Equivalents (1,548,725) 807,744 (1,145,525) Cash and Cash Equivalents at Beginning of Year 6,612,764 51,452,260 10,221,655 Cash and Cash Equivalents at End of Year $5,064,039 $52,260,004 $9,076,130 Reconciliation of Cash and Cash Equivalents per the Statement of Net Position: Cash and Cash Equivalents $3,064,039 $47,560,801 $7,558,178 Restricted Cash and Cash Equivalents 2,000,000 4,699,203 1,517,952 Cash and Cash Equivalents at End of Year $5,064,039 $52,260,004 $9,076,130 -46 - CITY OF HAMILTON, OHIO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2022 Governmental- Acri�iries Internal Service Wastewater Totals Funds Cash Flows from O�erating Activities: CashReceivedfromCustomers $12,830,394 $131,371,908 $12,291,296 Cash Payments for Goods and Services (5,827,507) (91,433,940) (6,811,824) CashPayments to Employees (2,811,573) (21,541,125) (5,573,461) Net Cash Provided(Used)by Operating Activities 4,191,314 18,396,843 (93,989) Cash Flows fromNoncapital Financin�Activities: Kilowatt Hour Tax Received 0 2,371,076 0 Kilowatt Hour Tax Paid to State 0 (2,371,076) 0 Transfers In from Other Funds 0 995,000 0 Advances In from Other Funds 0 0 293,848 Advances Out to Other Funds 0 0 (151,920) Net Cash Provided by Noncapital Financing Activities 0 995,000 141,928 Cash Flows from Capital and Related Financing Activiries: General Obligation Bond Principal Retirement (25,000) (25,000) 0 Note Proceeds 3,300,000 3,300,000 0 Premium on Debt Issuance 26,146 26,146 0 Revenue Bond Principal Retirement (2,000,000) (4,865,000) 0 OPWC Loan Proceeds 793,822 815,956 0 OWDA LoanPrincipal Retirement (63,904) (107,139) 0 OPWC Loan Principal Rerirement (121,451) (335,503) 0 Installment LoanPrincipal Retirement (131,114) (131,ll4) 0 InterestandFiscalCharges (1,516,092) (4,247,150) 0 Acquisition and Construction of Assets (2,659,106) (12,864,014) 0 Net Cash Used by Capital and Related Financing Activities (2,396,699) (18,432,818) 0 Cash Flows from Investin,�Activities: Receipts ofInterest 153,975 795,579 0 Change in the Fair Value of Investments (444,931) (2,137,451) (440) Net Cash Used by Investing Acriviries (290,956) (1,341,872) (440) Net Increase(Decrease)in Cash and Cash Equivalents 1,503,659 (382,847) 47,499 Cash and Cash Equivalents at Beginning of Year 16,297,133 84,583,812 104,252 Cash and Cash Equivalents at End of Year $17,800,792 $84,200,965 $151,751 Reconciliation of Cash and Cash Equivalents per the Statement of Net Position: CashandCashEquivalents $14,928,814 $73,111,832 $151,751 Restricted Cash and Cash Equivalents 2,871,978 ll,089,133 0 Cash and Cash Equivalents at End of Year $17,800,792 $84,200,965 $151,751 (Conrinued) -47 - CITY OF HAMILTON, OHIO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2022 Business Type Activiries Enterprise Funds Gas Electcic Water Reconciliation of Operating Income(Loss�to Net Cash Provided(Used)bv Operating Activities: OperatingIncome(Loss) ($775,055) $9,122,267 $717,309 Adjustments to Reconcile Operating Income(Loss)to Net Cash Provided(Used)by Operating Activities: Depreciation E�pense 2,177,482 7,422,962 3,390,283 Changes in Assets,Liabilities,and Deferred Outflows/Inflows: Increase inAccounts Receivable (446,ll6) (1,265,650) (472,651) (Increase)Decrease in Inventory (21,539) (28,413) (ll 1,367) Increase in Prepaid Items (54,494) (213,785) (51,150) Increase in Net OPEB Asset (199,819) (820,925) (268,844) Increase in Deferred Outflows of Resowces (124,449) (500,686) (156,655) Increase(Decrease)in Accounts Payable 550,848 (321,760) 79,846 Increase in Accrued Wages and Benefits 28,734 96,255 36,606 Decrease in Customer Deposits Payable (73,470) (63,988) (21,374) Increase in Accrued Liabilities 0 200 0 Increase(Decrease)in Intergoverntnental Payable 2,347 (2,770) 1,526 Increase in Compensated Absences 8,175 69,606 12,526 DecreaseinNetPensionLiability (661,039) (3,575,458) (1,107,222) Decrease in Total OPEB Liabiliry (85,822) (85,822) (85,822) Increase in Deferred Inflows of Resources 424,105 1,200,851 459,746 Total Adjustments 1,524,943 1,910,617 1,705,448 Net Cash Provided(Used)by Operating Activities $749,888 $11,032,884 $2,422,757 Schedule of Noncash Investing_Ca�ital.and Financing Activities: At December 31,2022 the Gas,Electric,Water,and Wastewater Funds had outstanding liabilities of $15,617,$528,ll 7,$235,446,and$95,661,respectively,for the purchase of certain capital assets. In 2022 the Wastewater Fund acquired a vacuum truck through the issuance of a$384,003 installment loan. See accompanying notes to the basic financial statements -48 - CITY OF HAMILTON, OHIO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2022 Governmental- Activiries Internal Service Wastewater Totals Funds Reconciliation of Operating Income(Loss)to Net Cash Provided(Used)bv Operating Activities: OperatingIncome(Loss) $2,288,737 $11,353,258 $1,718,886 Adjustments to Reconcile Operating Income(Loss)to Net Cash Provided(Used)by Operating Activities: Depreciation Expense 2,809,018 15,799,745 18,314 Changes in Assets,Liabiliries,and Deferred Outflows/Inflows: Increase inAccounts Receivable (171,762) (2,356,179) 0 (Increase)Decrease in Inventory 553 (160,766) ]1,257 Increase in Prepaid Itexns (39,848) (359,277) 0 Increase inNet OPEB Asset (189,125) (1,478,713) (376,280) Increase in Deferred Outflows of Resources (104,135) (885,925) (236,143) Increase(Decrease)in Accounts Payable 67,881 376,815 (206,158) Increase inAccrued Wages and Benefits 34,603 196,198 77,550 Decrease in Customer Deposits Payable (23,470) (182,302) 0 Increase in Accrued Liabilities 0 200 0 Increase(Decrease)in Intergovernmental Payable 2,299 3,402 12,935 Increase in Compensated Absences 51,722 142,029 32,827 DecreaseinNetPensionLiabiliry (787,053) (6,130,772) (1,661,073) Decrease in Total OPEB Liability (85,822) (343,288) 0 Increase in Deferred Inflows of Resources 337,716 2,422,418 513,896 Total Adjustments 1,902,577 7,043,585 (1,812,875) Net Cash Provided(Used)by Operating Activities $4,191,314 $18,396,843 ($93,989) -49 - CITY OF HAMILTON, OHIO Statement of Net Position Fiduciary Funds December 31, 2022 Custodial Funds Assets: Equiry in Pooled Cash and Investments $ 486,949 Receivables: Special Assessments 32,646,528 Total Assets 33,133,477 Liabilities: Intergovernmental Payable 201,339 Due to Others 2,493 Due to Hamilton Community Authority 32,646,528 Total Liabilities 32,850,360 Net Position: Restricted For: Individuals and Other Governments 283,117 Total Net Position $ 283,117 See accompanying notes to the basic fmancial statements - 50 - CITY OF HAMILTON, OHIO Statement of Changes in Net Position Fiduciary Funds For the Year Ended December 31, 2022 Custodial Funds Additions: Fines and Forfeiture Collections for Other Governments $ 1,997,968 Contriburions Received for Others 11,079 Tax Collections for Other Governments 2,478,177 Receipt of Seized Property Held for Others 20,359 Total Additions 4,507,583 Deductions: Distribution of Fines and Forfeitures to Other Governments 1,997,968 Distribution of Contributions Received for Others 11,079 Distribution of Taxes to Other Governments 2,478,177 Distribution of Seized Property Held for Others 12,838 Total Deductions 4,500,062 Change in Net Posirion 7,521 Net Position at Beginning of Year 275,596 Net Position End of Year $ 283,117 See accompanying notes to the basic financial statements - 51 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are presented as of December 31, 2022 and for the year then ended and have been prepared in conformity with generally accepted accounting principles (GAAP) applicable to local governments. The Governmental Accounting Standards Board(the "GASB") is the standard-setting body for establishing governmental accounting and financial reporting principles, which are primarily set forth in the GASB's Codification of Governmental Accountine and Financial Reportin� Standards (GASB Codification). A. Reportin�Entity The City of Hamilton, Ohio (the City) is a home rule municipal corporation created under the auspices of the laws and constitution of the State of Ohio. The origins of the City date back as early as 179L In 1803, the State of Ohio officially created Butler County and named the City as the county seat in 1810. Hamilton operates under a city charter adopted November 2, 1926 which became effective on January l, 1928. The current charter, as amended,was adopted November 7, 2000 and became effective on January 1, 2001. A seven-member council elected by voters of the City governs the City. The Mayor, who is separately elected, is recognized as the official head of the City for all ceremonial purposes. The City also elects a municipal court judge (the Judge) to preside over the proceedings of the Hamilton Municipal Court. The Judge is elected to a six-year term. The City Council appoints the City Manager who serves as Chief Executive Officer and Director of Public Safety. He is charged with the proper administration of all city affairs. The City Manager appoints all Directors and the Deputy City Manager-Operations, to whom the various utility systems' directors report. The City Manager also appoints the Finance Director, who acts as the Chief Financial Officer, as well as, the Directors of Law, Planning, Economic Development, Public Works, Health, Information Technology, the Chiefs of Police and Fire, and the Directors of the Electric and Gas and Water Utilities. Ultimately, the City Manager retains the power to appoint and remove all department heads, subordinate staff and employees and exercises control over all departments. The services provided under the direction of the City Manager as delegated to each of the subordinate Directors and their departments comprise the primary government unit of the City. They have therefore been included as part of the reporting entity. The funds, agencies, boards and commissions that are a part of the primary government include the following services: operation of a municipal court, police and fire protection, health, parks and recreation, street maintenance, and other governmental services. In addition, the City owns and operates a gas distribution system, electric generation facilities and distribution system, a water treatment and distribution system, a wastewater treatment and collection system, all of which are reported as enterprise funds (business type-major). The City also operates parking facilities, athletic facilities, and two golf courses,which are reported as special revenue funds (governmental—non-major). - 52 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) A. Reportin�Entity(Continued) The reporting entity is composed of the primary government, component units and other organizations. The primary government includes all funds, organizations, activities and component units for which the City (the primary government) is financially accountable and that are not legally separate. Component units are legally separate organizations for which the City is �nancially accountable. The City is financially accountable for an organization if it appoints a voting maj ority of the organization's governing board and either (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 the levying of taxes. The City reports one blended component unit and one discretely presented component unit. Blended Com�onent Unit - The City of Hamilton Health Department (the "Health Department") is a blended component unit of the City. The constitution and laws of the State of Ohio establish the rights and privileges of the Health Department as a body corporate and politic. A six-member Board and a Health Commissioner govern the Health Department. The Health Department's services include communicable disease investigations, immunization clinics, and inspections, and the Health Department issues health-related licenses and permits. Although it is legally separate from the City, the Health Department is reported as if it were part of the primary government due to the fact that the City manager appoints the members of the Board, the City provides operating support and approves the budget, and any debt of the Health Department is expected to be repaid entirely or almost entirely with resources of the City. Complete financial statements can be obtained from the City of Hamilton Department of Finance. Discretelv P�'esented Com�onent Unit - The component unit column on the government-wide financial statements includes the financial data of the City's discretely presented component unit, the Hamilton Community Authority(the "Authority"). The Authority is a community authority created pursuant to Chapter 349 of the Ohio Revised Code. The City of Hamilton, Ohio (the "Developer") filed a petition (the "Petition") for creation of the Authority with the Clerk of Council of the City of Hamilton, Ohio, and the petition was accepted by Ordinance No. OR2017-5-62 of the City Council on May 24, 2017. The Petition, which may be subject to amendment or change, defines the boundaries of the Authority and allows the Authority to finance the costs of publicly owned and operated improvements and community facilities with Community Development Charges. By its Ordinance, the City of Hamilton determined the Authority would be conducive to the public health, safety, convenience and welfare, and that it was intended to result in the development of a new community authority as described in the Ohio Revised Code. The Authority thereby was organized as a body corporate and politic in the State. - 53 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) A. Reportin�Entitv(Continued) By law, the Authority is governed by a seven-member board of trustees. At inception, the City Council of the City of Hamilton, Ohio appointed four of the trustees and the remaining three trustees were appointed by the Developer. The Authority is included as a component unit of the City due to the fact that the City appoints a voting maj ority of the Authority board, and the City can impose its will on the Authority by influencing the projects and activities of the Authority. Complete financial statements can be obtained from the City of Hamilton Department of Finance. See note 21. The City participates in four governmental joint ventures: three Hamilton-Indian Springs Joint Economic Development Districts (JEDD), the Ohio Municipal Electric Generation Agency (OMEGA) JV2, and the Meldahl Hydroelectric Project. The City also participates in the following jointly governed organizations: American Municipal Power (AMP) Inc., the Transportation Improvement District (TID) of Butler County, the Butler County Emergency Management Agency (EMA), the Hamilton Community Improvement Corporation (CIC), the Hamilton Economic Development Corporation (HEDC), and the Ohio-Kentucky-Indiana Regional Council of Governments (OKI). These organizations are presented in Note 18 and Note 19 to the basic financial statements and are excluded from the accompanying �nancial statements except as noted. As a custodian of public funds, the City invests all public monies held on deposit in the City Treasury. In the case of the Hamilton-Indian Springs Joint Economic Development Districts (the "JEDD"), a legally separate district, the City serves as fiscal agent but the organization is not considered a part of the City. The JEDD has a five-member board of trustees for which the City appoints one member and for which the City is not financially accountable. The JEDD was formed under the auspices of Ohio Revised Code Charter 715 to facilitate commercial and economic development within a specific territory completely located within the boundaries of then Indian Springs, now Fairfield Township. The JEDD has levied an income tax equal to the income tax rate charged within the City of Hamilton (2%) on all compensation earned by employees working in the JEDD. Income tax collections net of collection expenses and refunds are first applied to District operating expenses in accordance with the District's Budget, then to any long-term maintenance set aside, with any surplus to be paid to Hamilton and Fairfield Township according to contractual percentages. The JEDD is a joint venture of the City,which is more fully explained in Note 18 to the basic financial statements. Accordingly, the activity of the JEDD is presented as a custodial fund(fiduciary)within the City's financial statements. - 54 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) B.Basis of Presentation-Fund Accountin� The accounting policies and financial reporting practices of the City conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of its significant accounting policies: The accounting system is organized and operated on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, deferred outflows/inflows of resources, fund equity, revenues and expenditures (expenses). The following fund types are used by the City: Governmental Funds Governmental funds are those funds through which most governmental functions are typically �nanced. The acquisition, use and balances of the City's expendable financial resources and the related current liabilities (except those accounted for in the proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of"financial flow" (sources, uses and balances of financial resources). The following are the City's major governmental funds: General Fund- This fund is used to account for all financial resources except those accounted for in another fund. The general fund balance is available to the City for any purpose provided it is expended or transferred according to the generallaws of Ohio. Health Department Fund- This fund is used to account for the activities of the health department, which are funded by contributions from the general fund, charges for services, and grants. Coronavirus State and Local Fiscal Recover Funds SLFRF Fund- To account for Coronavirus State and Local Fiscal Recovery funds received as part of the American Rescue Plan Act. The funds are to be used to support the response and recovery from the COVID-19 public health emergency. Hamilton Capital Improvement Fund - This fund is used to account for revenue from one-fourth of one percent(.25%) of the City income tax receipts. Funds are to be used for capital acquisition for Police, Fire, Public Works, Parks and Recreation and Public Health. Funds may also be used to retire outstanding General Obligation Bonds and Notes issued for capital acquisition. Criminal Justice Center Construction Fund - This fund is used to account for debt proceeds and other sources to be used for construction of a new justice center, which will house the police department and municipal court. - 55 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) B.Basis of Presentation-Fund Accountin�(Continued) Proprietary Funds All proprietary funds are accounted for on an "economic resources" measurement focus. This measurement focus provides that all assets, liabilities, and deferred outflows/inflows of resources associated with the operation of these funds are included on the balance sheet. Proprietary fund type operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Enterprise Funds - These funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The City's major enterprise funds are: Gas Fund—To account for the operation of the City's gas service. Electric Fund—To account for the operation of the City's electric service. Water Fund—To account for the operation of the City's water system. Wastewater Fund—To account for the operation of the City's wastewater system. Internal Service Funds—These funds are used to account for fleet management services and costs of certain goods or services provided to other departments or agencies of the City. Fiduciary Funds Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: custodial funds, pension trust funds, investment trust funds, and private-purpose trust funds. The City has six custodial funds. The Rounding Up Utility Account Fund is used to account for voluntary contributions from citizens and/or organizations within the City to assist elderly, needy and disabled utility customers with utility charges incurred. The Butler County Annexation Tax Fund is used to account for income taxes obtained from a special annexation of contiguous property to Hamilton. The Joint Economic Development District (JEDD) Fund is used to account for the receipt and disbursement of income tax revenue pursuant to Section 11 of the Joint Economic Development District Agreement with Indian Springs/Fairfield Township, the 2004 Joint Economic Development District Agreement with Indian Springs/Fairfield Township, and Section 5 of the 2017 amendment to the Hamilton-Indian Springs Joint Economic Development District Contract with Fairfield Township. The Municipal Court Fund accounts for funds that flow through the municipal court office. The Property Assessed Clean Energy Fund accounts for special assessments collected and remitted to the Hamilton Community Authority. - 56 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) B.Basis of Presentation-Fund Accountin�(Continued) Fiduciary Funds(Continued) The Police Property Room Fund is used to account for the receipt of items remaining in the custody of the police department(the City will hold the items for a certain period of time at which they will be auctioned or disposed). Trust funds are used to account for assets held under a trust agreement for individuals, private organizations, or other governments and are therefore not available to support the City's own programs. The City currently has no trust funds. C. Basis of Presentation—Financial Statements 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 statements distinguish between those activities of the City that are governmental and those that are considered business- type activities. In order to avoid distorting the measurement of the cost of individual functional activities, entries are made to eliminate the activity provided by the internal service funds to those funds considered governmental and those considered business-type. These balances appear as internal balances on the statement of net position. Interfund receivables and payables between governmental and business-type activities have been eliminated in the government-wide Statement of Net Position. These eliminations minimize the duplicating effect on assets and liabilities within the governmental and business-type activities total column. Interfund services provided and used are not eliminated in the process of consolidation. The government-wide statements are prepared using the economic resources measurement focus. This is the same approach used in the preparation of the proprietary fund financial statements but differs from the manner in which governmental fund �nancial 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. This Space Intentionally Left Blank - 57 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) C. Basis of Presentation—Financial Statements (Continued) The government-wide statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function or program 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 and grants and contributions that are restricted to meeting the operational or capital requirements of 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 identifies the extent to which each business segment or governmental function is self-financing or draws from the general revenues of the City. Fund Financial Statements — Fund financial statements report detailed information about the City. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental fund types are accounted for using a flow of current financial resources measurement focus. The financial statements for governmental funds are a balance sheet, which generally includes only current assets, current liabilities, deferred outflows/inflows of resources, and a statement of revenues, expenditures and changes in fund balances, which reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other�nancing uses) of current financial resources. Proprietary and fiduciary fund types are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets, liabilities, and deferred outflows/inflows of resources associated with the operation of these funds are included on the statement of net position. The statement of changes in fund net position presents increases (i.e., revenues) and decreases (i.e., expenses) in net position. The statement of cash flows provides information about how the City finances and meets the cash flow needs of its proprietary activities. D. Basis of Accounting Basis of accounting represents the methodology utilized in the recognition of revenues and expenditures or expenses in the accounts and reported in the financial statements, and relates to the timing of the measurements made. The accounting and reporting treatment applied to a fund is determined by its measurement focus. - 58 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) D. Basis of Accounting(Continued) The modified accrual basis of accounting is followed by the governmental funds. Under the modified accrual basis of accounting,revenues are recorded when susceptible to accrual,i.e.,both measurable and available. The term "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, which for the City is 60 days after year end. Expenditures are recognized in the accounting period in which the fund liability is incurred, if ineasurable, except for unmatured interest on general long-term debt which is recognized when due. 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. Revenue from income taxes is recognized in the period in which the income is earned and is available. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied and the revenue is available. 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 speci�c purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Revenue considered susceptible to accrual at year end includes income taxes, interest on investments and state levied locally shared taxes (including motor vehicle license fees and local government assistance). Licenses,permits, charges for services and other miscellaneous revenues are recorded as revenue when received in cash because generally this revenue is not measurable until received. Special assessment installments including related accrued interest, which are measurable but not available at December 31, 2022, are recorded as deferred inflows of resources. Property taxes, which are measurable at December 31, 2022 but are not intended to finance 2022 operations, and delinquent property taxes whose availability is indeterminate, are recorded as deferred inflows of resources. Property taxes are further described in Note 5. The accrual basis of accounting is utilized for reporting purposes by the government-wide financial statements, proprietary funds, and custodial funds. Revenues are recognized when they are earned and expenses recognized when incurred. - 59 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) E.Budgetary Process The budgetary process is prescribed by provisions of the Ohio Revised Code and entails the preparation of budgetary documents within an established timetable. The major documents prepared are the tax budget, the certificate of estimated resources and the appropriation ordinance, all of which are prepared on the budgetary basis of accounting. The certificate of estimated resources and the appropriation ordinance are subject to amendment throughout the year. All funds other than custodial funds are legally required to be budgeted and appropriated; however, only governmental funds are required to be reported. The primary level of budgetary control is at the fund, department and object level. Budgetary modifications may be made only by ordinance of the City Council. L Tax Bud�et The Director of Finance submits an annual tax budget for the following fiscal year to City Council by July 15 for consideration and passage. The adopted budget is submitted to the County Auditor, as Secretary of the County Budget Commission, by July 20 of each year for the period January 1 to December 31 of the following year. 2. Estimated Resources The County Budget Commission reviews estimated revenue and determines if the budget substantiates a need to levy all or part of previously authorized taxes. The Budget Commission then certifies its actions to the City by September 1 of each year. As part of the certification process, the City receives an official certificate of estimated resources stating the projected receipts by fund. Prior to December 31, the City must revise its budget so that the total contemplated expenditures from any fund during the ensuing �scal year do not exceed the amount available as stated in the certificate of estimated resources. The revised budget then serves as the basis for the annual appropriations measure. On or about January 1, the certificate of estimated resources is amended to include any unencumbered fund balances from the preceding year. The certificate may be further amended during the year if a new source of revenue is identified or if actual receipts exceed current estimates. The amounts reported on the budgetary statements reflect the amounts in the final amended official certificate of estimated resources issued during 2022. - 60 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) E.Budgetary Process (Continued) 3. A�propriations As required by charter, an annual appropriation ordinance must be adopted prior to the beginning of the fiscal year. The appropriation ordinance establishes spending controls at the fund, department and object level, the legal level of control. The appropriation ordinance may be amended during the year as additional information becomes available, provided that total fund appropriations do not exceed the current estimated resources as certified by the County Budget Commission. During the year, several supplemental appropriations were necessary to budget contingency funds, intergovernmental grants and proceeds of debt issues. The allocation of appropriations among departments and objects within a fund may be modi�ed during the year by management. Administrative control is maintained through the establishment of more detailed line-item budgets. The budgetary figures which appear in the "Statement of Revenues, Expenditures, and Changes in Fund Balances--Budget and Actual for the General Fund and Major Special Revenue Funds" are provided on the budgetary basis to provide a comparison of actual results with the final budget, including all amendments and modifications. 4. Encumbrance As part of formal budgetary controls, purchase orders, contracts and other commitments for expenditures are encumbered and recorded as the equivalent of expenditures (budget basis) in order to reserve that portion of the applicable appropriation. However, on the GAAP basis of accounting, encumbrances do not constitute expenditures or liabilities. 5. Lapsin_ o�f A�propriations At the close of each fiscal year, the unencumbered balance of each appropriation reverts to the respective fund from which it was appropriated and becomes subject to future appropriations. The encumbered appropriation balance is carried forward to the subsequent fiscal year and need not be reappropriated. 6. Budgetary Basis of Accounting The City's budgetary process accounts for the City's transactions on a basis other than generally accepted accounting principles (GAAP). The major differences between the budgetary basis and the GAAP basis lie in the manner in which revenues and expenditures are recorded. Under the budgetary basis, revenues and expenditures are recognized on the cash basis. Utilizing the cash basis, revenues are recorded when received in cash and expenditures when paid. Under the GAAP basis,revenues and expenditures are recorded on the modified accrual basis of accounting. Encumbrances are recorded as the equivalent of expenditures on the budgetary basis. - 61 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) E.Budgetary Process (Continued) 6. Budgetary Basis of Accounting(Continued) The following table summarizes the adjustments necessary to reconcile the GAAP basis statement to the budgetary cash basis statement for the General Fund and Major Special Revenue Funds: Net Change in Fund Balance Health General Department SLFRF Fund Fund Fund GAAP Basis (as reported) ($45,580) $1,038 $17,517 Increase(Decrease): Accrued Revenues at December 31,2022 received during 2023 (8,585,056) 390 0 Accrued Revenues at December 31,2021 received during 2022 8,679,849 (27) (17,517) Accrued F�penditures at December 31,2022 paid during 2023 6,600,251 0 0 Accrued Eapenditures at December 31,2021 paid during 2022 (4,925,685) 0 (8,295,100) Change in Interfund Balances (331,618) 0 0 2021 Prepaids for 2022 221,944 0 0 2022 Prepaids for 2023 (285,249) 0 0 Outstanding Encumbrances (3,159,400) 0 0 Perspective Difference: Activity ofFunds Reclassified for GAAP Reporting Purposes 624,800 0 0 Budget Basis ($1,205,744) $1,401 ($8,295,100) F. Cash and Cash Equivalents Cash and cash equivalents include amounts in demand deposits, the State Treasury Asset Reserve (STAR Ohio) and short-term securities with original maturities of three months or less. STAR Ohio is considered a cash equivalent because it is a highly liquid investment. See Note 4, "Cash, Cash Equivalents and Investments." - 62 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) G.Investments Investment procedures and interest allocations are restricted by provisions of the Ohio Constitution and the Ohio Revised Code. The City allocates interest among certain funds based upon the fund's cash balance at the date of investment. In accordance with GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools" and GASB Statement No. 72, "Fair T�alue Measurement and Application," the City records all its investments at fair value except for nonparticipating investment contracts which are reported at cost, which approximates fair value. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statements. 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. See Note 4, "Cash, Cash Equivalents and Investments". The City's investment in the State Treasury Asset Reserve of Ohio (STAR 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 and is recognized as an external investment pool by the City. 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 a NAV per share that approximates fair value. For fiscal year 2022, there were no limitations or restrictions on any participant withdrawals due to redemption notice periods, liquidity fees, or redemption gates. However, notice must be given 24 hours in advance of all deposits and withdrawals exceeding $100 million. STAR Ohio reserves the right to limit the transaction to $250 million,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. H. Inventory Inventories are stated at moving average cost. The costs of governmental fund inventories are recorded as expenditures when purchased rather than when consumed. The costs of proprietary fund inventories are recorded as expenses when consumed rather than when purchased. L 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. A current asset for the prepaid amount is recorded at the time of the purchase and an expenditure/expense is reported in the year in which services are consumed. - 63 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) J. Capital Assets and Depreciation Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000. 1. Propert�Plant and Equipment-Governmental Activities Governmental activities capital assets are those not directly related to the business type funds. These generally are acquired or constructed for governmental activities and are recorded as expenditures in the governmental funds and are capitalized at cost(or estimated historical cost for assets not purchased in recent years). These assets are reported in the Governmental Activities column of the Government-wide Statement of Net Position, but they are not reported in the Fund Financial Statements. Contributed capital assets are recorded at acquisition value at the date received. Capital assets include land, buildings, building improvements, machinery, equipment and infrastructure. Infrastructure is defined as long-lived capital assets that normally are stationary in nature and normally can be preserved for a significant number of years. Examples of infrastructure include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Estimated historical costs for governmental activities capital asset values were initially determined by identifying historical costs when such information was available. In cases where information supporting original cost was not obtainable, estimated historical costs were developed. For certain capital assets, the estimates were arrived at by indexing estimated current costs back to the estimated year of acquisition. Leased assets are measured at the present value of lease payments expected to be made during the lease term. 2. Propert�Plant and Equipment—Business Type Activities Property, plant and equipment acquired by the proprietary funds are stated at cost (or estimated historical cost), including interest capitalized during construction and architectural and engineering fees where applicable. Contributed capital assets are recorded at acquisition value at the date received. These assets are reported in both the Business-Type Activities column of the Government-wide Statement of Net Position and in the respective funds. Leased assets are measured at the present value of lease payments expected to be made during the lease term. 3. Depreciation All capital assets are depreciated, excluding land and construction in progress. Depreciation has been provided using the straight-line method over the following estimated useful lives: Governmental and Business-Type Activities Description Estimated Lives (in years) Buildings 40 Improvements Other than Buildings 40 Machinery, Equipment,Furniture and Fixtures 5 — 10 Infrastructure 25—75 Intangible Assets—FERC License 50 Leased Assets 5 - 10 - 64 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) K. Lon�-Term Obligations Long-term liabilities are being repaid from the following funds: Obligation Fund General Obligation/Income Tax Debt Service Fund,Parking Fund Revenue/Special Obligation Non-Tax Golf Course Fund,Wastewater Fund Revenue Bonds OWDA/OPWC Loans Water Fund, Wastewater Fund, Stormwater Management Fund Special Assessment Bonds Debt Service Fund Revenue Bonds Gas Fund, Electric Fund, Water Fund Wastewater Fund Leases Payable General Fund, Hamilton Capital Improvement Fund Installment Loans General Fund, Stormwater Fund, Wastewater Fund Total OPEB Liability General Fund, Gas Fund, Electric Fund, Water Fund, Wastewater Fund Compensated Absences/Net Pension General Fund, Safety Services Fund, Liability/Net OPEB Liability Refuse Fund, Street Maintenance Fund Community Development Block Grant Fund Gas Fund, Electric Fund,Water Fund Wastewater Fund, Parking Fund Golf Course Fund,Fleet Maintenance Fund Central Services Fund L. Compensated Absences Employees of the City earn vacation leave at various rates within limits specified under collective bargaining agreements or under ordinance. Vacation earned in a calendar year must be used during that year. Vacation time cannot carry over into the subsequent year, unless written permission is granted from the City Manager. At termination or retirement, employees are paid at their then full rate for 100°/o of their unused vacation leave. The rate of cash compensation for sick leave payout varies within specified limits under collective bargaining agreements or City ordinance. Employees hired before 1990 are paid 75% of the accumulated sick time upon retirement or death up to a maximum of 1,200 hours for employees whose normal wark schedule is 40 hours per week, and up to 1,680 hours for those working a 51 hour week. Those individuals that commenced employment on or after January 1, 1990, will be paid 50%, and those individuals that commenced employment on or after January 1, 1994 will be paid 25% of the accumulated sick leave upon death or retirement. Compensation for sick leave is paid at the employee's then full rate of pay at the time of termination or retirement. - 65 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) L. Compensated Absences (Continued) In accordance with GASB Statement No. 16, "Accounting for Compensated Absences," the City records a liability for vacation time and sick leave when the obligation is attributable to services previously rendered or to rights that vest or accumulate, and when payment of the obligation is probable and can be reasonably determined. For governmental funds, compensated absences are recognized as liabilities and expenditures to the extent payments come due each period upon the occurrence of employee resignations and retirements. For governmental funds, the portion of unpaid compensated absences expected to be paid using expendable, available resources is reported as an expenditure in the fund from which the individual earning the leave is paid, and a corresponding liability is reflected in the account "Compensated Absences Payable." The long-term portion of the liability is reported in the Government-wide Statements under Long-term Liabilities. M.Net Position Net position represents the difference between assets,liabilities, and deferred outflows/inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. N. Pension/OPEB The provision for pension/OPEB cost is recorded when the related payroll is accrued and the obligation is incurred. For purposes of ineasuring the net pension and OPEB liability/asset, 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 systems. 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 systems report investments at fair value. O. Interfund Activity 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 and after nonoperating revenues/expenses in proprietary funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements. In order to avoid distorting the measurement of the cost of individual functional activities, entries are made to eliminate the activity provided by the internal service funds to those funds considered governmental and those considered business-type. The elimination of the internal service funds is based on the activity of each fund to which it provides service. - 66 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) P.Fund Balances In the fund financial statements, fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. Fund balance is reported in five components — nonspendable, restricted, committed, assigned and unassigned. Nonspendable—Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form or legally contractually required to be maintained intact. Restricted— Restricted fund balance consists of amounts that have constraints placed on them either externally by third parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling legislation. 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 (compelled by external parties) that those resources be used only for the specific purposes stipulated in the legislation. Committed — Committed fund balance consists of amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City's highest level of decision making authority. For the City, these constraints consist of ordinances passed by City Council. Committed amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action (ordinance) it employed previously to commit those amounts. Assigned—Assigned fund balance consists of amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed. The City has no formal policy authorizing a body or official to assign amounts for specific purposes. Unassigned — Unassigned fund balance consists of amounts that have not been restricted, committed or assigned to specific purposes within the General Fund as well as negative fund balances in all other governmental funds. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted (committed, assigned and unassigned) resources as they are needed. In 2012, City Council enacted Budget and Financial Policies (R2012-6-25), which requires the maintenance of a minimum General Fund Balance (reserve) of 10-16% of annual expenditures. If the General Fund reserve rises above 16% of General Fund revenue at fiscal year end, the amount over 16°/o will be swept into the Economic Development Capital Projects Fund and/or the Economic Budget Stabilization Fund, which can be expended only through special action by City Council. At December 31, 2022, the balance in the Economic Budget Stabilization Fund was $4,200,000 and is reported in unassigned fund balance. - 67 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Q. Restricted Assets Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside far their repayment, are classified as restricted assets on the statement of net position because their use is limited to debt service payments and rate stabilization. Restricted cash in the General Fund represents resources set aside for the payment of health insurance claims, as well as amounts set aside pursuant to the Champions Mill Inter-creditor Agreement. R. Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. For the City, these revenues are charges for services for gas and electric service, water treatment and distribution and wastewater collection and treatment. Operating expenses are necessary costs incurred to provide the good or service that is the primary activity of the fund. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. S. Estimates The preparation of 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. T.Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred outflows for the deferred charge on debt refunding and for deferred pension/OPEB amounts. The deferred charge on debt refunding is reported in the government-wide statement of net position and proprietary funds statement of net position. A deferred charge on refunding results 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. Deferred outflows of resources are reported for pension/OPEB amounts on the government-wide and proprietary funds statement of net position. See Notes 10 and 11. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources until that time. On the government-wide statement of net position and governmental funds balance sheet, property taxes that are intended to finance future fiscal periods are reported as deferred inflows. - 68 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) T.Deferred Outflows/Inflows of Resources(Continued) In addition, the governmental funds balance sheet reports deferred inflows which arise only under a modified accrual basis of accounting. Accordingly, the item, unavailable amounts, is reported only in the governmental funds balance sheet. The governmental funds report unavailable amounts for delinquent property taxes, income taxes, special assessments, and state levied shared taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Deferred inflows are also reported on the government-wide and fund financial statements for lease receivable amounts to be received in future years. Deferred inflows of resources related to pension/OPEB are reported on the government-wide and proprietary funds statement of net position. See Notes 10 and 11. U. Leases Receivable Lease receivables are measured at the present value of lease payments expected to be received during the lease term, reduced by any provision for estimated uncollectible amounts. Deferred inflows of resources related to lease receivables are recorded initially as equal to the amount of the initial measurement of the lease receivable and subsequently recognized as revenue in a systematic and rational manner over the term of the lease. This Space Intentionally Left Blank - 69 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 2-FUND BALANCE CLASSIFICATION Fund balance is classified as nonspendable, restricted, committed, assigned, and unassigned 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 constraints placed on fund balance for the major governmental fund and all other governmental funds are presented below: Health Hamilton Capital Criminal Other Total General Department Improvement Justice Center Governmental Govemmental Fund Balances Fund Fund Fund Fund Funds Funds Nonspendable: Supplies Inventory $67,335 $0 $0 $0 $24,593 $91,928 Prepaid Items 285,249 0 0 0 46,521 331,770 Unclavned Funds 36,309 0 0 0 0 36,309 Pern�anent Fund Corpus 0 0 0 0 75,000 75,000 Total Nonspendable 388,893 0 0 0 146,114 535,007 Restricted: Public Safety 0 0 0 0 5,327,937 5,327,937 Public Health 0 13,772 0 0 0 13,772 County Court Computer Improvements 0 0 0 0 401,736 401,736 Dispute Resolution 0 0 0 0 45,391 45,391 Addiction Treatment 0 0 0 0 56,849 56,849 Law Enforcement 0 0 0 0 5,330,201 5,330,201 Street Maintenance 0 0 0 0 3,348,503 3,348,503 Community Development 0 0 0 0 468,886 468,886 Fire Insurance Deposits 0 0 0 0 195,832 195,832 CapitalIxnprovements 0 0 30,519,844 0 538,900 31,058,744 Pern�anent Fund Corpus 0 0 0 0 325 325 Champions Mill Intercreditor Agreement 7,000,000 0 0 0 0 7,000,000 TotalRestricted 7,000,000 13,772 30,519,844 0 15,714,560 53,248,176 Conunitted: StormwaterOperations 0 0 0 0 2,077,116 2,077,116 Refuse Operations 0 0 0 0 1,575,596 1,575,596 Parking Operations 0 0 0 0 95,318 95,318 ColfCourseOperations 0 0 0 0 29,126 29,126 TotalCommitted 0 0 0 0 3,777,156 3,777,156 Assigned: CapitalImprovements 0 0 0 7,169,061 8,293,185 15,462,246 Services and Supplies 1,698,934 0 0 0 0 1,698,934 Worker's Compensation 4,593,A17 0 0 0 0 4,593,817 Total Assigned 6,292,751 0 0 7,169,061 8,293,185 21,754,997 Unassigned(Deficits): 18,521,286 0 0 0 (2,000,434) 16,520,852 TotalFundBalances $32,202,930 $13,772 $30,519,844 $7,169,061 $25,930,581 $95,836,188 Champions Mill Inter-creditor Agreement-The City has restricted $7,000,000 of non-tax revenues pursuant to an inter-creditor agreement with Central Bank and Trust (the `Bank") and Champions Mill Land LLC (the "Developer"). A financing commitment from the Bank to the Developer for the Spooky Nook Project is conditional upon the City establishing the reserve fund. The City is required to maintain these reserves until December 31, 2026. -70 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 3 -COMPLIANCE AND ACCOUNTABILITY Deficit Fund Equities—The following funds had deficit fund balance/net position amounts at December 31, 2022: Fund Balance/ Fund Net Position Deficit Nonmajor Governmental Funds Capital Projects Funds: Special Assessment Fund $2,000,434 Internal Service Funds Fleet Maintenance 1,223,011 Central Services 4,199,437 The deficit occurring in the Special Assessment Fund is due to interfund payables reported in the fund. As cash is received and the payables liquidated,the deficits will be eliminated. The deficits in the Fleet Maintenance Fund and Central Services Fund have occurred due to recognition of liabilities at year-end. The Internal Service Funds operate as a rotary fund and cash is recognized as revenue operationally only after an actual expense is made. These deficits will be eliminated by future charges for services. A portion of these deficits are the result of accounting for the net pension/OPEB liability for which there is no repayment schedule. NOTE 4 -CASH,CASH EQUIVALENTS,AND INVESTMENTS Cash resources of several individual funds are combined to form a pool of cash and investments. In addition, investments are separately held by a number of individual funds. Statutes require the classification of funds held by the City into three categories: Category 1 consists of"active" funds - those funds required to be kept in "cash" or "near cash" status for immediate use by the City. Such funds must be maintained either as cash in the City Treasury or in depository accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts. Category 2 consists of "inactive" funds - those funds not required for use within the current five year period of designation of depositories. Inactive funds may be deposited or invested only as certificates of deposit maturing no later than the end of the current period of designation of depositories. -71 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 4 -CASH,CASH EQUIVALENTS,AND INVESTMENTS (Continued) Category 3 consists of"interim° funds - those funds not needed for immediate use but needed before the end of the current period of designation of depositories. Interim funds may be invested or deposited in the following securities: • United States treasury notes, bills, bonds, or any other obligation or security issued by the United States treasury or any other obligation guaranteed as to principal or interest by the United States; • Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality, including but not limited to, the federal national mortgage association, federal home loan bank, federal farm credit bank, federal home loan mortgage corporation, government national mortgage association, and student loan marketing association. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities; • Written repurchase agreements in the securities listed above provided that the fair 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 that the term of the agreement must not exceed thirty days; • Interim deposits in eligible institutions applying for interim funds; • Bonds and other obligations of the State of Ohio; • No-load money market mutual funds consisting exclusively of obligations described in the first two bullets of this section and repurchase agreements secured by such obligations, provided that investments in securities described in this division are made only through eligible institutions, and • The State Treasury Asset Reserve of Ohio (STAR Ohio). Ohio law requires that deposits be either 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 fair 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 fair value of the securities pledged to be 102 percent of the deposits being secured or a rate set by the Treasurer of State. -72 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 4 -CASH,CASH EQUIVALENTS,AND INVESTMENTS (Continued) A.Deposits Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a custodial credit risk policy. As of December 31, 2022, $10,790,361 of the City's bank balance of$11,546,853 was exposed to custodial credit risk since it was uninsured and collateralized with securities held in the Ohio Pooled Collateral System. B. Investments The City's investments at December 31,2022 are summarized below: Credit Fair Value Concentration Investment Maturities(in Years) FairValue Ratin� Hierarchy ofCreditRisk lessthanl 1-3 3-5 Money Market Mutual Fund3 $2,208,753 AA+� NA 131% $2,208,753 $0 $0 Marketable CDs 8,469,502 AAA4 I.eve12 5.01% 5,143,689 3,325,813 0 STAR Ohio3 69,361,899 AAAm� NA 41.06% 69,361,899 0 0 Municipal Bonds 324,608 Aa2� Leve12 019% 0 324,608 0 FNMA 6,291,392 AA+' I,eve12 3.72% 3,359,795 2,931,597 0 FFCB 20,172,670 AA+� I,eve12 ll.94% 5,417,550 9,184,057 5,571,063 FAMC 3,216,444 AA+� I,eve12 1.90% 3,216,444 0 0 FHLB 12,839,702 AA+� I,eve12 7.60% 0 7,791,902 5,047,800 FHLMC 10,216,113 AA+� I,eve12 6.05% 3,419,895 6,796,218 0 US Treasury Notes 35,811,935 N/A I.evel 1 21.22% 8,937,577 9,730,485 17,143,873 TotalInvestments $168,913,018 100.00% $101,065,602 $40,084,680 $27,762,736 ' Standard&Poor's 2 Moody's 3 Reported at amortized cost 4 All are fully FDIC insured and therefore have an implied AAA credit rating Custodial Credit Risk The risk that, in the event of a failure of a counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City employs the use of"safekeeping" accounts to hold and maintain custody of its investments as identified within this policy and as a means of mitigating this risk. -73 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 4 -CASH,CASH EQUIVALENTS,AND INVESTMENTS (Continued) B. Investments (Continued) Interest Rate Risk The risk that the City will incur fair value losses arising from rising interest rates. Such risk is mitigated by the investment policy by limiting investments to certain maximum maturities. As a rule, unless specified otherwise within the policy,investments are to have a maximum maturity of five years unless the investment is matched to a specific expenditure. The context of a specific investment purchase must be weighed in proportion to the remainder of the existing investment portfolio and the "prudent investor"rule to attempt to limit such risk. Credit Risk It is the City's policy to limit its investments that are not obligations of the U.S. Government or obligations explicitly guaranteed by the U.S. Government to investments which have the highest credit quality rating issued by nationally recognized statistical rating organizations. Concentration of Credit Risk The City places no limit on the amount it may invest in any one issuer. 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. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Leve12 inputs are significant other observable inputs. Investments classi�ed in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. Level 3 inputs are significant unobservable inputs. C. Bennin�hofen Trust The Bennighofen Trust Fund reports the endowment bequeathed to the City from the estate of Christian Benninghofen. The endowment is to be held permanently by the City and invested and reinvested in bonds issued by the United States, the State of Ohio, or any County, as well as municipal bonds issued by such subdivisions with the State of Ohio. Earnings from the endowment are to be used for the purpose of assisting and aiding the needy poor of the City. The City disburses earnings from the endowment quarterly. This Space Intentionally Left Blank -74 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 5 -TAXES A. PropertV Taxes Property taxes include amounts levied against real estate and public utility property located in the City. Real property taxes (other than public utility) collected during 2022 were levied after October 1, 2021 on assessed values as of January 1, 2021, the lien date. Assessed values were established by the County Auditor at 35% of appraised market value. All property is required to be reevaluated every six years and equalization adjustments made in the third year following the reappraisal. The last revaluation was completed for tax year 2017. Real property taxes are payable annually or semiannually. If paid annually, payment is due January 31; if paid semiannually, the first payment is due February and the remainder payable in July. Under certain circumstances, state statute permits later payment dates to be established. Public utility real property taxes collected in one calendar year are levied in the preceding calendar year on assessed values determined as of December 31 of the year preceding the tax collection year, the lien date. Certain public utility tangible personal property is currently assessed at 100°/o of its true value. Public utility property taxes are payable on the same dates as real property described previously. The County Treasurer collects property taxes on behalf of all taxing districts in the County including the City of Hamilton. The County Auditor periodically remits to the City its portion of the taxes collected. The full tax rate for the City's operations for the year ended December 31, 2022 was $10.71 per $1,000 of assessed value. The assessed value upon which the 2022 receipts were based was $942,098,790. This amount constitutes $931,870,700 in real property assessed value and $10,228,090 in public utility assessed value. Ohio law prohibits taxation of property from all taxing authorities in excess of 1% of assessed value without a vote of the people. Under current procedures, the City's share is 1.071% (10.71 mills) of assessed value. Real Estate Tax Abatement Pursuant to Ohio Revised Code Chapter 5709, the City established an Enterprise Zone Abatement Program. The City authorizes incentives through passage of public ordinances, based upon each businesses investment criteria and through a contractual application process with each business. The abatement equals an agreed upon percentage of the additional property tax resulting from the increase in assessed value as a result of the improvements. The amount of the abatement is deducted from the recipient's property tax bi1L The establishment of the Enterprise Zone gave the City the ability to maintain and expand business located within the City and created new jobs by abating or reducing assessed valuation of properties, resulting in abated taxes, from new or improved business real estate and includes major housing improvements in specified areas. -75 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 5 -TAXES (Continued) A. Propertv Taxes (Continued) The City has offered the Enterprise Zone abatements to encourage economic stability, maintain property values, and generate new employment opportunities and population growth. Below is the amount of taxes abated for the Enterprise Zone Program for the year ending December 31, 2022. Total Amount of Taxes Abated Tax Abatement Program Far the year 2022 Enterprise Zone 3DSL Properties,LLC $58,421 80 Acres Urban Agriculture,LLC 16,021 Bethesda Hospital and Duke Realty 254,741 Concord Hamiltonian Riverfront 46,555 GR3 Sandbox Partners LLC 10,23 0 Matandy Steel&Metal Products 24,388 Thyssenkrupp Bilstein 32,064 Vinylmax,LLC 62,562 $504,982 B. Income Tax The City levies a tax of 2.00% on all salaries, wages, commissions and other compensation and on net profits earned within the City as well as on incomes of residents earned outside the City. In the latter case, the City allows a credit of 100% of the tax paid to another municipality to a maximum of 2.00% of taxable salaries,wages, commissions and other compensation. Employers within the City are required to withhold income tax on employees' 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. All City residents are required to file a municipal income tax return annually regardless of whether tax is owed. -76 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 5 -TAXES (Continued) B. Income Tax(Continued) Income Tax Abatement The City created the Job Creation and Tax Credit Program to maintain the City's competitiveness as a site for location of new businesses and the expansion of existing businesses. Pursuant to Ohio Revised Code 718 and the applicable City ordinance, the City provides an incentive to the company based upon the company's gross annual payroll, the amount of income tax generated annually and the number of jobs created or retained by the business. The abatement is administered as a refund based upon the company's payroll taxes. The time period of the incentive in years, is determined by how many new jobs are created by the company. The tax abatement incentive to a new business or expanding business with new payroll is at a percentage of up to 60% of income tax paid on new payroll for a period of 3 to 10 years. For the year ending December 31, 2022,income taxes of$26,353 were abated by the City. NOTE 6—RECEIVABLES Receivables at December 31, 2022 consisted of taxes, accounts receivable, accrued interest, special assessments, loans receivable, leases receivable, interfund receivables, and intergovernmental (due from other governments) receivables arising from shared revenues. These receivables result from both exchange and non-exchange transactions. Business-type receivables at December 31, 2022, are presented net of allowances for doubtful accounts. To better detail the accounts receivable balances in the Business-type Funds, the following schedule identifies and reconciles these amounts as of December 31, 2022 as follows: Accounts Receivable Total As of December 31,2022 Business-Type Gas Electric Water Wastewater Activities Earnedandunbilledconsumeraccounts $2,207,821 $5,485,943 $1,024,710 $916,635 $9,635,109 Earned and billed consumer accounts 1,662,325 5,899,981 1,401,632 1,494,502 10,458,440 Less allowance for uncollectible accounts (491,536) (2,230,869) (365,989) (571,027) (3,659,421) Other 2,962 633,252 15,306 6,884 658,404 TotalAccountsReceivable $3,381,572 $9,788,307 $2,075,659 $1,846,994 $17,092,532 -77 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 7-TRANSFERS Following is a summary of transfers in and out for all funds for 2022: Fund Transfers In Transfers Out Governmental Funds: General Fund $0 $21,810,391 Health Department Fund 266,602 0 Hamilton Capital Improvement Fund 2,799,503 2,694,531 Criminal Justice Center Construction Fund 8,069,480 0 Other Governmental Funds 14,201,663 1,827,326 Total Governmental Funds 25,337,248 26,332,248 Proprietary Funds: Enterprise Funds: Gas Fund 150,000 0 Electric Fund 10,000 0 Water Fund 835,000 0 Total Enterprise Funds 995,000 0 Totals $26,332,248 $26,332,248 The City makes transfers between various funds during the year for operating and debt service related payments. The individual governmental funds transfer their portion of the debt service payment during the year into the Debt Service Fund for payment of obligations and some transfers are made from the General Fund at year-end to eliminate deficit balances. In 2022 the Street Maintenance Fund and Municipal Improvement Tax Increment Equivalent Fund transferred $775,841 and $516,828, respectively, to the Infrastructure Program Fund for various infrastructure improvement projects. The Hamilton Capital Improvement Fund transferred$2,294,032 to the Debt Service Fund for debt retirement. The General Fund transferred a total of$21,543,789 to various funds for capital projects and purchases. NOTE 8—INTERFUND TRANSACTIONS The composition of inter-fund balances as of December 31, 2022, is as follows: Interfund Interfund Receivable Payable General Fund $2,413,104 $0 Other Governmental Funds 0 2,ll 9,256 Fleet Maintenance Fund 0 293,848 $2,413,104 $2,413,104 $2,ll9,256 and $293,848 of the interfund activity relates to cash advances the General Fund made to the Special Assessment Fund and Fleet Maintenance Fund,respectively. -78 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 9 -CAPITAL ASSETS A. Governmental Activities Capital Assets Summary by category of changes in governmental activities capital assets at December 31, 2022: Historical Cost: December 31, December 31, Class 2021 Additions Delerions 2022 Capital assets not being depreciated: L,and $21,817,381 $1,077,849 $0 $22,895,230 Construction in Progress 33,262,556 15,316,418 (5,838,925) 42,740,049 Sub-Total 55,079,937 16,394,267 (5,838,925) 65,635,279 Capital assets being depreciated: Buildings and Improvements 47,177,381 4,642,790 0 51,820,171 L,eased Buildings 0 144,726 0 144,726 Machinery and Equipment 34,776,075 1,984,273 (160,052) 36,600,296 Leased Equipment 0 211,783 0 211,783 Infrastructure 187,138,058 3,266,1ll 0 190,404,169 Total Cost $324,171,451 $26,643,950 ($5,998,977) $344,816,424 Accumulated Depreciation: December 31, December 31, Class 2021 Additions Deletions 2022 Buildings and Improvements ($23,614,096) ($1,014,680) $0 ($24,628,776) L,eased Buildings 0 (25,373) 0 (25,373) Machinery and Equipment (25,883,858) (1,436,416) 160,052 (27,160,222) Leased Equipment 0 (28,237) 0 (28,237) Infrastructure (141,356,268) (2,131,544) 0 (143,487,812) Total Depreciation ($190,854,222) ($4,636,250) * $160,052 ($195,330,420) Net Value: $133,317,229 $149,486,004 *Depreciation was charged to governmental functions as follows: General Government $709,557 Security of Persons and Property 770,328 L,eisure Time Activities 286,640 Comui�inity Environment 6,541 Tran sportation 2,852,171 Public Health and Welfare Services 11,013 Total Depreciation Eapense $4,636,250 -79 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 9 -CAPITAL AS5ET5 (Continued) B.Business-Tvne Activities Capital Assets Summary by category at December 31,2022: Historical Cost: December 31, December 31, Class 2021 Additions Deletions 2022 Capital assets not being depreciated: L.and $9,485,792 $1,329,497 $0 $10,815,289 Construction in Progress 52,571,081 2,495,200 (18,400,630) 36,665,651 Sub-Total 62,056,873 3,824,697 (18,400,630) 47,480,940 Capital assets being depreciated: Intangible CapitalAssets 1,070,786 0 0 1,070,786 Buildings and Irnprovements 132,416,364 4,631,547 0 137,047,9ll Machinery and Equipment 689,095,763 21,274,526 (2,127,675) 708,242,614 Total Cost $884,639,786 $29,730,770 ($20,528,305) $893,842,251 Accumulated Depreciation: December 31, December 31, Class 2021 Additions Deletions 2022 Intangible CapitalAssets ($299,824) ($21,416) $0 ($321,240) Buildings and Improvements (77,078,007) (1,815,445) 0 (78,893,452) Machinery and Equipment (489,044,542) (13,962,884) 1,816,405 (501,191,021) Total Depreciation ($566,422,373) ($15,799,745) $1,816,405 ($580,405,713) Net Value: $318,217,413 $313,436,538 - 80 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS Net Pension Liabiliry The net pension liability reported on the statement of net position represents a liability to employees for pensions. Pensions are a component of exchange transactions--between an employer and its employees— of salaries and benefits for employee services. Pensions 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 liability represents the City's proportionate share of each pension plan's collective actuarial present value of projected benefit payments attributable to past periods of service, net of each pension plan's fiduciary net position. The net pension liability calculation is 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 this estimate annually. 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. GASB 68 assumes the liability is solely the obligation of the employer, because (1) they benefit from employee services; and (2) State statute requires all funding to come from these employers. All contributions to date have come solely from these employers (which also includes costs paid in the form of withholdings from employees). State statute requires the pension plans to amortize unfunded liabilities within 30 years. If the amortization period exceeds 30 years, each pension plan's board must propose corrective action to the State legislature. Any resulting legislative change to benefits or funding could significantly affect the net pension liability. Resulting adjustments to the net pension liability would be effective when the changes are legally enforceable. The proportionate share of each plan's unfunded benefits is presented as a long-term net pension liability on the accrual basis of accounting. Any liability for the contractually-required pension contribution outstanding at the end of the year is included in intergovernmental payable on both the accrual and modified accrual bases of accounting. Plan DescYiption—Ohio Public Employees Retirement System (OPERS) Plan Description - City employees, other than full-time police and firefighters, participate in the Ohio Public Employees Retirement System (OPERS). OPERS administers three separate pension plans. The traditional pension plan is a cost-sharing, multiple-employer defined benefit pension plan. The member- directed plan is a defined contribution plan and the combined plan is a cost-sharing, multiple-employer defined benefit pension plan with defined contribution features. While members (e.g. City employees) may elect the member-directed plan and the combined plan, substantially all employee members are in OPERS' traditional plan; therefore,the following disclosure focuses on the traditional pension plan. - 81 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) OPERS provides retirement, disability, survivor and death benefits, and annual cost of living adjustments to members of the traditional plan. 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 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 plan as per the reduced benefits adopted by SB 343 (see OPERS Annual Comprehensive Financial Report referenced above 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 prior to Members not in other Groups January 7,2013 or five years January 7,2013 or efigible 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 aud 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 or Age 62 with 5 years of service credit Formula: Formula: 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 first 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 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 bene�t amount. The initial amount of a member's pension benefit is vested upon receipt of the initial benefit payment for calculation of an annual cost-of-living adjustment. When a benefit recipient has received benefits for 12 months, an annual cost of living adjustment(COLA) is provided. This COLA is calculated on the base retirement benefit at the date of retirement and is not compounded. For those retiring prior to January 7, 2013, the COLA will continue to be a 3.00% simple annual COLA. For those retiring subsequent to January 7, 2013, beginning in calendar year 2019, the COLA will be based on the average percentage increase in the Consumer Price Index, capped at 3.00%. Benefits in the Combined Plan consist of both an age-and-service formula benefit(defined benefit) and a defined contribution element. The defined benefit element is calculated on the basis of age, FAS, and years of service. Eligibility regarding age and years of service in the Combined Plan is the same as the Traditional Pension Plan. The benefit formula for the defined benefit component of the plan for State and Local members in transition Groups A and B applies a factor of 1.00% to the member's FAS for the �rst 30 years of service. - 82 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) A factor of 1.25% is applied to years of service in excess of 30. The benefit formula for transition Group C applies a factor of 1.0% to the member's FAS and the first 35 years of service and a factor of 1.25% is applied to years in excess of 35. Persons retiring before age 65 with less than 30 years of service credit receive a percentage reduction in benefit. The defined contribution portion of the benefit is based on accumulated member contributions plus or minus any investment gains or losses on those contributions. Defined contribution plan benefits are established in the plan documents, which may be amended by the OPERS's Board of Trustees. 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% 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), partial lump-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. For additional information, see the Plan Statement in the OPERS Annual Comprehensive Financial Report. Beginning in 2022, the Combined Plan will be consolidated under the Traditional Pension Plan (defined benefit plan) and the Combined Plan option will no longer be available for new hires beginning in 2022. 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 % Employer contribution rates are actuarially determined and are expressed as a percentage of covered payroll. The City's contractually required contribution was $4,014,875 for 2022. Of this amount, $179,591 is reported as an intergovernmental payable. - 83 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) Plan DescYiption—Ohio Police& Fire Pension Fund(OPP) Plan Description - City full-time police and itrefighters participate in Ohio Police and Fire Pension Fund (OPF), a cost-sharing, multiple-employer defined benefit pension plan administered by OPF. OPF 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. OPF issues a publicly available financial report that includes financial information and required supplementary information and detailed information about OPF fiduciary net position. The report that may be obtained by visiting the OPF website at www.op-f•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 sufficient years of service, a member of OPF inay retire and receive a lifetime monthly pension. OPF 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 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 above 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 OPF 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 and statutory survivors. Members participating in the DROP program have separate eligibility requirements related to COLA. Members retiring under normal service retirement, with less than 15 years of service credit on July 1, 2013, will receive a COLA equal to either 3.00% or the percent increase, if any, in the consumer price index (CPI) over the 12-month period ending on September 30 of the immediately preceding year, whichever is less. The COLA amount for members with at least 15 years of service credit as of July 1, 2013 is equal to 3.00% of their base pension or disability benefit. 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 1 st of each year. The annual COLA increase is $360 under a Single Life Annuity Plan with proportional reductions for optional payment plans. - 84 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) 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 OPF was $4,184,855 for 2022. Of this amount, $340,750 is reported as an intergovernmental payable. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The net pension liability for OPERS was measured as of December 31, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. OPF'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, 202L The City's proportion of the net pension liability 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: OPERS OP&F Total Proportionate Share of the Net Pension Liability $17,101,085 $46,189,957 $63,291,042 Proportion of the Net Pension Liability-2022 0.196555% 0.739344% Proportion of the Net Pension Liability-2021 0.192842% 0.713153% Percentage Change 0.003713% 0.026191% Pension Expense ($2,664,695) $3,295,028 $630,333 - 85 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: OPERS OP&F Total Deferred Outflows of Resources Changes in assumptions $2,138,471 $8,441,541 $10,580,012 Differences between expected and actual experience 871,788 1,331,844 2,203,632 Change in proportionate share 459,451 2,474,036 2,933,487 City contributions subsequent to the measurement date 4,014,875 4,184,855 8,199,730 Total DeferredOutflows ofResourccs $7,484,585 $16,432,276 $23,916,861 Deferred Inflows ofResources Net difference between projected and actual earnings onpensionplaninvestments $20,341,108 $12,110,293 $32,451,401 Differences between e�pected and actual experience 375,067 2,401,244 2,776,311 Change in proportionatc share 0 397,619 397,619 Total DeferredInflows of Resources $20,716,175 $14,909,156 $35,625,331 $8,199,730 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 in the year ending December 31, 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 OP&F Total Year Ending December 31: 2023 ($2,362,693) $500,198 ($1,862,495) 2024 (6,864,960) (2,836,087) (9,701,047) 2o2s �4,�s3,o1�� s69,000� �s,6s2,oi�� 2026 �3,23s,�9s� �s�6,434� �3,s12,229� zo2� 0 1,119,sss l,ll9,ssg Total ($17,246,465) ($2,661,735) ($19,908,200) ActuaYial 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. - 86 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) 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 in the December 31, 2021 and December 31, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: December 31,2021 Wage Inflation 2.75 percent Future Salary Increases,including inflation 2.75 to 10.75 percent including wage inflation COLA orAd Hoc COLA(Pre 1/7/13 retirees) 3 percent simple COLA orAd Hoc COLA(Post 1/7/13 retirees) 3 percent simple through 2022.2.05 percent simple,thereafter Investment Rate of Return 6.9 percent Actuarial Cost Method Individual Entry Age December 31,2020 Wage Inflation 3.25 percent Future Salary Increases,including inflation 3.25 to 10.75 percent including wage inflation COLA orAd Hoc COLA(Pre 1/7/13 retirees) 3 percent simple COLA orAd Hoc COLA(Post 1/7/13 retirees) 0.5 percent simple through 2021.2.15 percent simple,thereafter Investment Rate of Return 7.2 percent Actuarial Cost Method Individual Entry Age Pre-retirement mortality rates are based on 130% of the Pub-2010 General Employee Mortality tables (males and females) for State and Loca1 Government divisions and 170% 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% 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 a11 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. The most recent experience study was completed for the five year period ended December 31, 2020. The long-term 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. - 87 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) 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. Best estimates of arithmetic real rates of return were provided by the Board's investment consultant. For each major asset 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: Long-Term Fa�ected Target Real Rate of Return Asset Class Allocation (Arithmetic) Fixed Income 24.00 % 1.03 % Domestic Equities 21.00 3.78 Real Fs tate 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 was 6.9 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 statutorily required rates. 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 was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's PYoportionate ShaNe of the Net Pension Liabiliry to Changes in the Discount Rate The following table presents the City's proportionate share of the net pension liability 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 would be if it were calculated using a discount rate that is one- percentage-point lower(5.9 percent) or one-percentage-point higher(7.9 percent)than the current rate: Current 1%Decrease Discount Rate 1%Increase (5.90%) (6.90%) (7.90%) City's proportionate share of the net pension liability $45,087,751 $17,101,085 ($6,187,551) - 88 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) ActuaYial Assumptions—OPF OPF'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 OPF's actuaries in accordance with GASB Statement No. 67, as part of their annual valuation. Actuarial valuations of an ongoing plan involve estimates 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 were: 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. Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results, prepared as of January 1, 2021, compared with January l, 2020, are presented below. January 1,2021 January 1,2020 Valuation Date January 1,2021,with actuarial liabilities January 1,2020,with actuarial liabilities rolled forward to December 31,2021 rolled forward to December 31,2020 Actuarial Cost M ethod Entry Age Normal Entry Age Normal Investment Rate of Return 7.5 percent 8.0 percent Projected Salary Increases 3.75 percent to 10.5 percent 3.75 percent to 10.5 percent Payroll Growth Inflation rate of 2.75 percent plus Inflation rate of 2.75 percent plus productivity increase rate of 0.5 productivity increase rate of 0.5 Cost of LivingAdjustments 2.2 percent simple 2.2 percent simple For the January 1, 2021 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 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 For the January 1, 2021 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 Modified 2016 Improvement Scale. - 89 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) 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 expectation. 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 OPF's target asset allocation as of December 31, 2021 are summarized below: Target Long Term E�ected Asset Class Allocation RealRate 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 Care Fixed Income* 23.00 110 High Yeld Fi�d Income 7.00 3.00 Private Cedit 5.00 4.50 U.S.Inflation Linked Bonds* 17.00 0.80 MidstreamEnergy Infrastructure 5.00 5.00 Real As s ets 8.00 5.90 Go ld 5.00 2.40 Private Real Estate 12.00 4.80 Total 125.00 % * levered 2.Sx Note:Assumptions are geometric OPF's Board of Trustees has incorporated the "risk parity" concept into OPF'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. -90 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 10—DEFINED BENEFIT PENSION PLANS (Continued) Discount Rate For 2021, the total pension liability was calculated using the discount rate of 7.50 percent. The discount rate used for 2020 was 8.00 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 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 Ciry's PYoportionate ShaYe 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 $68,499,061 $46,189,957 $27,611,980 This Space Intentionally Left Blank -91 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F Net OPEB Liability(Asset) The net OPEB liability(asset)reported on the statement of net position represents a liability to employees for OPEB. OPEB is a component of exchange transactions--between an employer and its employees—of salaries and benefits for employee services. 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 �nancial period. The obligation to sacrifice resources for OPEB is a present obligation because it was created as a result of employment exchanges that already have occurred. The net OPEB liability (asset) represents the City's proportionate share of each OPEB plan's collective actuarial present value of projected benefit payments attributable to past periods of service, net of each OPEB plan's fiduciary net position. The net OPEB liability (asset) calculation is 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. 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 OPEB are financed; however, the City does receive the benefit of employees' services in exchange for compensation including OPEB. GASB 75 assumes the liability is solely the obligation of the employer, because they benefit from employee services. OPEB contributions come from these employers and health care plan enrollees which pay a portion of the health care costs in the form of a monthly premium. The Ohio revised Code permits, but does not require the retirement systems to provide healthcare to eligible benefit recipients. Any change to benefits or funding could significantly affect the net OPEB liability (asset). Resulting adjustments to the net OPEB liability(asset)would be effective when the changes are legally enforceable. The retirement systems may allocate a portion of the employer contributions to provide for these OPEB benefits. The proportionate share of each plan's unfunded benefits is presented as a long-term net OPEB liability (asset) on the accrual basis of accounting. Any liability for the contractually-required OPEB contribution outstanding at the end of the year is included in intergovernmental payable on both the accrual and modified accrual bases of accounting. -92 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) Plan Description —Ohio Public Employees Retirement System (OPERS) Plan Description - 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 to qualifying benefit recipients of both the traditional pension and the combined plans. This 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 refund, member directed plan participants may be eligible for reimbursement of qualified medical expenses from their vested RMA balance. 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. Medicare-eligible retirees who choose to become re-employed or survivors who become employed in an OPERS-covered position are prohibited from participating in an HRA. For this group of retirees, OPERS sponsors secondary coverage through a professionally managed self-insured program. Retirees who enroll in this plan are provided with a monthly allowance to offset a portion of the monthly premium. Medicare- eligible spouses and dependents can also enroll in this plan as long as the retiree is enrolled. OPERS provides a monthly allowance for health care coverage for eligible retirees and their eligible dependents. The base allowance is determined by OPERS. Effective January 1, 2022, OPERS will discontinue 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. These changes are reflected in the December 31, 2020, measurement date health care valuation. -93 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) In order to qualify for postemployment health care coverage, age and service retirees under the traditional pension and combined plans must have 20 or more years of qualifying Ohio service credit with a minimum age of 60, or generally 30 years of qualifying service at any age. Health care coverage for disability benefit recipients and qualified survivor benefit recipients is available. The health care coverage provided by OPERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement 75. Current retirees eligible (or who become eligible prior to January l, 2022) to participate in the OPERS health care program will continue to be eligible after January 1, 2022. Eligibility requirements wi11 change for those retiring after January 1, 2022, with differing eligibility requirements for Medicare retirees and non-Medicare retirees. 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 financial report. Interested parties may obtain a copy by visiting https://www.opers.or,�/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 authority requiring 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, health care is not being funded. 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. The portion of employer contributions allocated to health care for members in the Traditional Pension Plan and Combined Plan was 0 percent during calendar year 2022. 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 $0 for 2022. -94 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) Plan DescYiption—Ohio Police& Fire Pension Fund(OP&F) Plan Description — 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 far health care and Medicare Part B reimbursements. 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. A retiree is eligible for the OP&F health care stipend unless they have access to any other group coverage including employer and retirement coverage. The eligibility of spouses and dependent children could increase the stipend amount. If the spouse or dependents have access to any other group coverage including employer or retirement coverage, they are not eligible for stipend support from OP&F. Even if an OP&F member or their dependents are not eligible for a stipend, they can use the services of the third- party administrator to select and enroll in a p1an. The stipend provided by OP&F meets the definition 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 ll5 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-f•or� 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 �re employer units. Active members do not make contributions to the OPEB Plan. -95 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) The Board of Trustees is authorized to allocate a portion of the total employer contributions made into the pension plan to the Section 115 trust and the Section 401(h) account as the employer contribution 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 and is limited by the provisions of Sections ll 5 and 401(h). 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 $99,435 for 2022. Of this amount, $8,529 is reported as an intergovernmental payable. OPEB Liabilities (Asset), 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 l, 2021, to December 31, 202L The City's proportion of the net OPEB liability (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 Proportionate Share of the Net OPEB Liability(Asset) ($6,304,ll2) $8,103,849 $1,799,737 Proportion of the Net OPEB Liability(Asset) -2022 0201271% 0.739344% Proportion of the Net OPEB Liability(Asset) -2021 0.197091% 0.713153% Percentage Change 0.004180% 0.026191% OPEB Expense ($5,212,765) $818,356 ($4,394,409) *Tota12022 OPEB expense, including the Retiree Life Insurance Plan is ($4,433,964). -96 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) 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 ofResources Changes in assumptions $0 $3,587,011 $3,587,011 Differences between e�cpected and actual eaperience 0 368,652 368,652 Change in proportionate share 43,738 834,245 877,983 City contributions subsequent to the measurement date 0 99,435 99,435 Total Deferred Outflows of Resources $43,738 $4,889,343 $4,933,081 Deferred Inflows ofResources Net difference between projected and actual earnings on OPEB plan investments $3,005,359 $732,049 $3,737,408 Changes in assumptions 2,551,834 941,213 3,493,047 Differences between expected and actual eaperience 956,238 1,071,039 2,027,277 Change in proportionate share 0 233,310 233,310 Total Deferred Inflows of Resources $6,513,431 $2,977,61 1 $9,491,042 $99,435 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 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 3 1: 2023 ($3,984,461) $492,770 ($3,491,691) 2024 �i,396,96i> 3a4,o9i �i,oi2,a�o> 2025 (656,656) 398,540 (258,116) zoz6 �431,61s> l03>960 �3z�,6ss> 2027 0 207,304 207,304 2028 0 140,331 140,331 2029 0 85,301 85,301 Total ($6,469,693) $1,812,297 ($4,657,396) ActuaYial 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. -97 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) Projections of benefits for financial reporting purposes are based on the substantive plan 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. The total OPEB liability was determined by an actuarial valuation as of December 31, 2020, rolled forward to the measurement date of December 31, 2021. The actuarial valuation used the following actuarial assumptions applied to all prior periods included in the measurement in accordance with the requirements of GASB 74: Wage Inflation 2.75percent Projected Salary Increases, 2.75 to 10.75 percent including inflation includmg wage inflation Single Discount Rate: Current measurement date 6.00 percent Prior measurement date 6.00 percent Investment Rate ofReturn: C�irrent measurement date 6.00 percent Prior measurement date 6.00 percent Municipal Bond Rate: C�irrent measurement date 1.84 percent Prior measurement date 2.00 percent Health Care Cost Trend Rate: Current measurement date 5.5 percent initial, 3.5 percent ultimate in 2034 Prior measurement date 8.5 percent initial, 3.5 percent ultimate in 2035 Actuarial Cost Method Individual Entry Age Normal Pre-retirement mortality rates are based on 130% of the Pub-2010 General Employee Mortality tables (males and females) for State and Local Government divisions and 170% 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% 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 a11 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. The most recent experience study was completed for the five year period ended December 31, 2020. -98 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) 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 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. The allocation of investment assets with 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. Best estimates of arithmetic rates of return were provided by OPERS 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: Weighted Average L,ong-Term Eapected Target Real Rate of Return Asset Class Allocation (Arithmetic) 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 Pariry 2.00 2.92 Other investments 7.00 1.93 Total 100.00 % 3.45 °/o Discount Rate A single discount rate of 6.00 percent was used to measure the OPEB liability on the measurement date of December 31, 2021. A single discount rate of 6.00 percent was used to measure the OPEB liability on the measurement date of December 31, 2020. 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 L84 percent (Fidelity Index's "20-Year Municipal GO AA Index"). -99 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) 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 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 Liability (Asset) to Changes in the Discount Rate The following table presents the City's proportionate share of the net OPEB liability (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 (asset) 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°/a) (7.00°/a) City's proportionate share of the net OPEB liability(asset) ($3,707,412) ($6,304,112) ($8,459,420) Sensitivity of the City's Proportionate Share of the Net OPEB Liability (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 (asset). The following table presents the net OPEB liability (asset) calculated using the assumed trend rates and the expected net OPEB liability (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. 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 that in the not-too-distant future,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 City's proportionate share of the net OPEB liability(asset) ($6,372,240) ($6,304,112) ($6,223,299) - 100 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement SVstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) 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 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 ar 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 liabilities January 1,2020,with actuarial liabilities rolled forward to December 31,2021 rolled forward to December 31,2020 Actuarial Cost M ethod Entry Age Normal Entry Age Normal Investment Rate of Return 7.5 percent 8.0 percent Projected Salary Increases 3.75 percent to 10.5 percent 3.75 percent to 10.5 percent Payroll Growth Inflation rate of 2.75 percent plus Inflation rate of 2.75 percent plus productivity increase rate of 0.5 productivity increase rate of 0.5 Single discount rate 2.84 percent 2.96 percent Cost of LivingAdjustments 2.2 percent simple 2.2 percent simple - 1�1 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement Svstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) 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 Modified 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 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 les s 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 OPEB 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 below: - 102 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement SVstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) Target L,ong TermEapected Asset Class Allocation RealRate ofRetum 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 Fi�d Income * 23.00 110 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 A s s ets 8.00 5.90 Go ld 5.00 2.40 Private RealEstate 12.00 4.80 Total 125.00 % * levered 2.Sx Note:Assumptions are geometric 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 OPEB liability was calculated using the discount rate of 2.84 percent. For 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 7.50 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 212 percent at December 31, 2020, was blended with the long- term rate of 7.50 percent, 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. - 103 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) A. Ohio Public Emplovees Retirement SVstem (OPERS) and Ohio Police & Fire Pension Fund OP&F (Continued) Sensitivity of the City's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate The 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 (L84 percent), or one percentage point higher (3.84 percent) than the current rate. Current 1%Decrease Discount Rate 1%Increase (1.84%) (2.84%) (3.84%) City's proportionate share of the net OPEB liability $10,186,719 $8,103,849 $6,391,726 Sensitivity of the City's PYoportionate Share of the Net OPEB Liability to Changes in the Health Care Cost Trend Rate The total OPEB liability is based on a medical benefit that is a flat dollar amount; therefore, it is unaffected by a health care cost trend rate. An increase or decrease in the trend rate would have no effect on the total OPEB liability. This Space Intentionally Left Blank - 104 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) B. Retiree Life Insurance Plan Total OPEB Liability The Total OPEB liability reported for Retiree Life Insurance on the statement of net position represents a liability to employees for OPEB. OPEB is a component of exchange transactions--between an employer and its employees—of salaries and benefits for employee services. 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 OPEB is a present obligation because it was created as a result of employment exchanges that already have occurred. Plan DescYiption Plan Description — The City provides life insurance benefits to individuals who retire from the City through a single-employer OPEB plan which is administered by Hartford Life Insurance Company. The retiree must have a minimum of ten consecutive years of continuous service with the City, must have been associated with the City for at least five of the last ten years prior to retirement and must have participated in the employee group life insurance program to and at the time of retirement. The retiree must be immediately eligible at the time of separation for full retirement or disability retirement benefits under the Public Employees Retirement System, Ohio Police and Fire Pension Fund, or other retirement system. Employees who retired prior to March 1, 1977 are eligible to receive $2,000 in life insurance benefits. Employees who retired after March 1, 1977 are eligible to receive $4,000 in life insurance benefits. Benefit provisions of the plan are established and may be amended by City Council through ordinance. Funding Policy— Annual contributions to the plan represent actual contractual contributions required to cover the cost of the life insurance premiums. The City's contractually required contribution was $89,880 for 2022. At December 31, 2022 the number of active participants was 607 and the number of retirees was 676. The City's Retiree Life Insurance plan has no assets. - 105 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) B. Retiree Life Insurance Plan (Continued) Changes in the Total OPEB Liability, OPEB expense, DefeYYed Outflows of ResouYces and DefeYYed Inflows of Resources The Total OPEB liability for the Retiree Life Insurance plan was determined by an actuarial valuation as of December 31, 2022. Following is information related to changes in the Total OPEB liability: Changes in Total OPEB Liability Total OPEB Liability 12/31/21 $1,681,865 Service cost 24,053 Interest 29,468 Difference between expected and actual experience (8,500) Changes of assumptions (384,251) Benefit payments (89,880) Total OPEB Liability 12/31/22 $1,252,755 Retiree Life Insurance Plan OPEB expense ($39,555) At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the Retiree Life Insurance Plan from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Retiree Life Insurance Plan Changesinassumptions $111,809 $298,860 Differences between expected and actual experience 38,086 6,610 Total $149,895 $305,470 Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Retiree Life Insurance Plan will be recognized in OPEB expense as follows: Year Ending December 31: 2023 ($6,5 64) 2024 (39,648) 2025 (67,407) 2026 (41,956) Total ($155,575) - 106 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 11 -DEFINED BENEFIT OPEB PLANS (Continued) B. Retiree Life Insurance Plan (Continued) ActuaYial Assumptions 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. The total OPEB liability was determined by an actuarial valuation as of December 31, 2022. The actuarial valuation used the following actuarial assumptions applied to all prior periods included in the measurement in accordance with the requirements of GASB 74: Single Discount Rate: Current measurement date 4.00 percent Prior Measurement date 1.80 percent Actuarial Cost Method Entry Age Normal Martality Rates: Non-Disabled Pub-2010 General/Public Safety Retired Pub-2010 General Retiree Disabled Pub-2010 General Disabled Retiree Weighting Headcount-weighted Future Improvement Projected generationally using Scale MP-2021 The most recent experience study was completed for the five year period ended December 31, 2018. Discount Rate A single discount rate of 4.00 percent was used to measure the total OPEB liability on the measurement date of December 31, 2022. A single discount rate of 1.80 percent was used to measure the total OPEB liability on the measurement date of December 31, 2021. Because the Retiree Life Insurance Plan is not funded, the discount rate is based on a 20-year tax exempt municipal bond rate based on published indices. Sensitivity of the total OPEB Liability to Changes in the Discount Rate The following table presents the Retiree Life Insurance Plan total OPEB liability calculated using the single discount rate of 4.00 percent, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one- percentage-point lower(3.00 percent) or one-percentage-point higher(5.00 percent)than the current rate: Current 1%Decrease Discount Rate 1%Increase (3.00%) (4.00%) (5.00%) Total OPEB liability $1,400,677 $1,252,755 $1,129,719 - 107 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 12 -NOTES PAYABLE The Ohio Revised Code provides that notes including renewal notes issued in anticipation of the issuance of general obligation bonds may be issued and outstanding from time to time up to a maximum period of twenty years from the date of issuance of the original notes. The maximum maturity for notes anticipating general obligation bonds payable from special assessments is five years. Any period in excess of five years must be deducted from the permitted maximum maturity of the bonds anticipated, and portions of the principal amount of notes outstanding for more than five years must be retired in amounts at least equal to and payable no later than those principal maturities required if the bonds had been issued at the expiration of the initial five year period. Bond anticipation notes may be retired at maturity from the proceeds of the sale of renewal notes or of the bonds anticipated by the notes, or from available funds of the City or a combination of these sources. Balance Balance January 1, December 31, 2021 Issued (Retired) 2022 Special Revenue Fund Notes Payable: 4.00% Stormwater Improvements 0 3,700,000 0 3,700,000 Total Special Revenue Fund Notes Payable 0 3,700,000 0 3,700,000 Capital Projects Fund Notes Payable: 4.00% CriminalJustice CenterConstruction $0 $23,000,000 $0 $23,000,000 4.00% Tylersville Road Improvements 0 2,250,000 0 2,250,000 4.00% Utility Relocation 0 750,000 0 750,000 4.00% Amphitheater Roof 0 1,750,000 0 1,750,000 Total Capital Projects Fund Notes Payable 0 27,750,000 0 27,750,000 Enterprise Fund Notes Payable: 4.00% WastewaterImprovements 0 3,300,000 0 3,300,000 Total Enterprise Fund Notes Payable 0 3,300,000 0 3,300,000 TotalNotes Payable $0 $34,750,000 $0 $34,750,000 This Space Intentionally Left Blank - 108 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 13 -LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS Long-term debt and other long-term obligations of the City at December 31, 2022 were as follows: Balance Balance Issue Interest Maturity December3l, December3l, DueWithin Date Rate Description Date 2021 Additions Reductions 2022 OneYear Governmental Activities Debt: General Obligation Bonds: 2020 3.0%-4.00°/ VariousPurpose2020 2040 $2,500,000 $0 ($40,000) $2,460,000 $100,000 2020 3.0%-4.00°/ VariousPurpose2020Refunding 2040 1,170,000 0 (250,000) 920,000 265,000 2018 2.6%-4.00% Various Purpose 2048 9,810,000 0 (240,000) 9,570,000 250,000 2021 1.08°/ Property Improvement 2024 1,000,000 0 0 1,000,000 0 Total Cre�eral Obligation Bonds 14,480,000 0 (530,000) 13,950,000 615,000 Special Obligation Non-TaxRevenue Bonds:* 2020 0.93%-3.48% ChampionsMillProjectRefundi�g 2050 30,025,000 0 0 30,025,000 0 2020 0.93%-3.48% ChampionsMillProject 2050 1,875,000 0 (80,000) 1,795,000 80,000 Total Special Obligation Non-TaxRevenue Bonds 31,900,000 0 (8Q000) 31,820,000 80,000 Income TaxReve�ue Bonds:* 2017 3.00% VariousPurposeRefunding 2035 7,198,135 0 (423,979) 6,774,156 437,439 2017 3.00% Various Purpose 2035 479,866 0 (202,161) 277,705 146,562 2017 239°/ VariousPurposeRefu�di�g 2026 1,062,091 0 (1,062,091) 0 0 Total Income TaxRevenue Bonds 8,740,092 0 (1,688,231) 7,051,861 584,001 Special Assessment Bonds(with Governmental Cortunitment): 2003 525% Shaffer's Creek Sanitary Sewer 2022 30,000 0 Q5,000) I5,000 15,000 IssuanceDiscounts/Premiums 280,281 0 (26,860) 253,421 0 TotalBondsPayable 55,430,373 0 (2,340,091) 53,090,282 1,294,001 Ohio WaterDevelopment Authority Loans Payable:* 2016 2.13% South Hamilton Road Storm W ater 2049 3,171,949 0 (85,893) 3,086,056 87,732 2020 1.47°/ Spooky NookPublic Improveme�ts 2052 2,222,637 564,71] (43,097) 2,744,251 86,828 Total Ohio W ater Development Authority Loans Payable 5,394,586 564,711 (128,990) 5,830,307 174,560 InstalLnent Loans: 2019 27-4.0°/ GovemmentBuilding 2049 23,390,000 0 (490,000) 22,900,000 505,000 2022 3.25% LeafCollector 2025 0 15Q561 (59,930) 90,631 29,235 TotalInstallmentLoans 23,390,000 15Q561 (549,930) 22,990,631 534,235 Governmental Activities Other Long-Term Obligations: Leases 0 356,509 (50,206) 306,303 111,899 Claims Payable 0 3,SOQ000 0 3,500,000 350,000 Compensated absences 4,762,640 2,249,443 (2,287,020) 4,725,063 2,320,786 Govemme�talActivitiesDebtandOtherLong-TennObGgations $88,977,599 $6,821,224 ($5,356,23'� $90,442,586 $4,785,481 *The Income Tax Revenue Bonds and Special Obligation Non-Tax Revenue Bonds are direct placement debt. The Ohio Water Development Authority Loans are direct borrowing debt. The principal amount of the City's special assessment bonds outstanding was $15,000. The special assessments issued are for non-capital related repairs to sidewalks, streets, etc. Special assessment bonds are general obligation debt (backed by the full faith and credit of the City) that is being retired with the proceeds from special assessments levied against benefited property owners. The City is obligated to repay the debt irrespective of the amount of special assessments collected from property owners. - 109 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 13 -LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS(Continued) Balance Balance Issue Interest Maturity December3l, December3l, Due Within Date Rate Descnption Date 2021 Additions Reductions 2022 One Year Business-Type AcHviHes Debt: Mortgage Revenue Bonds: 2017 2.23% Cms Refunding 2027 $3,615,000 $0 ($570,000) $3,045,000 $585,000 2018 3.80% Gas Improvements 2038 1,540,000 0 (65,000) 1,475,000 70,000 2018 3.0%-5.0% ElectricRefunding 2030 10,75Q000 0 (975,000) 9,775,000 1,03Q000 2019 3.0°/-5.0°/ Electric Refunding 2039 11,160,000 0 (2Q000) 11,140,000 25,000 2019 3.0%-5.0% ElectricImprovements 2049 I5,105,000 0 (29Q000) 14,815,000 300,000 2015 2.0°/-5.0°/ WaterRefunding 2044 9,975,000 0 (32Q000) 9,655,000 325,000 2018 4.00°/ Water Refunding 2029 4,665,000 0 (S1Q000) 4,155,000 525,000 2018 3.0%-4.0% WaterImprovements 2048 2,79Q000 0 (60,000) 2,730,000 65,000 2019 3.0°/-4.0°/ WaterRefunding 2039 8,005,000 0 (2Q000) 7,985,000 20,000 2019 3.0°/-4.0°/ W ater Improvements 2049 1,735,000 0 (35,000) 1,700,000 35,000 2016 1.75%-5.0% WastewaterRefunding 2026 5,265,000 0 (965,000) 4,300,000 1,O1Q000 2018 2.0°/-5.0°/ WastewaterRefunding 2041 22,510,000 0 (77Q000) 21,740,000 80Q000 2019 3.0°/-5.0°/ WastewaterRefunding 2039 8,310,000 0 (265,000) 8,045,000 275,000 105,425,000 0 (4,865,000) 100,56Q000 5,065,000 Issuance Discounts/Premiums 6,935,738 0 (643,316) 6,292,422 0 Total Mortgage Revenue Bonds 112,36Q738 0 (5,508,316) 106,852,422 5,065,000 Creneral Obligation Bonds: 2018 2.6%-4.0% WastewaterImprovements 2038 495,000 0 (25,000) 470,000 25,000 Ohio WaterDevelopment Authority Loans:* 2010 3.25% SanitarySewerImprovements 2030 228,858 0 (22,275) 206,583 23,005 2016 133°/ River Road WaterMain 2037 765,492 0 (43,235) 722,257 43,811 2018 2.22% SanitarySewerImprovements 2049 1,129,023 0 (41,629) 1,087,394 33,190 TotalOhioWaterDevelopmentAuthonryLoans 2,123,373 0 (10'7,139) 2,016,234 100,006 Ohio Public Works Coixnx�ission Loans:* 2016 0.00%Gilmore Road Pump Station I 2049 2,965,381 0 (107,832) 2,857,549 107,832 2016 0.00°/Pershing Avenue Water Main 2048 662,448 0 (24,998) 637,450 24,998 2017 0.00%State Route 4 W ater Main 2049 393,730 0 (14,318) 379,412 14,318 2017 0.00%Arlington Avenue W ater Main 2049 561,239 0 Q9,693) 541,546 19,693 2017 0.00°/Gilmore Road Pump Station II 2049 374,516 0 (13,619) 360,897 13,619 2018 0.00%Southern Hills WaterMain 2049 1,722,711 0 (60,446) 1,662,265 60,446 2019 0.00°/Bilstein WaterMain Loop 2050 226,120 0 (7,934) 218,186 7,934 2020 0.00%HighlandParkWaterMain ZO51 2,099,203 22,134 (35,356) 2,085,981 70,711 2019 0.00°/North Third Street W ater Main 2050 1,513,547 0 (51,307) 1,462,240 51,307 2021 0.00%SOID Sanitary SewerRelocation 2052 1,605,038 793,822 0 2,398,860 79,962 Total Ohio Public Works Commission Loans 12,123,933 815,956 (335,503) 12,604,386 45Q820 Installment Loan: 2022 2.45% VacuumTruck 2024 0 384,003 (131,114) 252,889 17A,913 Basiness-'I�pe Activities Other Long-Term Obliga6ons: Compensated absences 2,957,125 1,799,592 (1,65Q013) 3,106,704 1,776,747 Business-TypeActivitiesDebtandOtherLong-TermObligations $130,060,169 $2,999,551 ($7,757,085) $125,302,635 $7,542,486 *The Ohio Water Development Authority Loans and Ohio Public Warks Commission Loans are direct borrowings. Outstanding revenue bonds totaled $100,560,000 at December 31, 2022. Under the terms of the revenue bond indentures, the City has agreed to certain covenants including, among other things, maintaining revenue levels to provide for operating expenses and debt service. All of the borrowing issued under the master trust indentures for the revenue bonds are insured under municipal bond insurance policies. Under the terms of the policies,the insurer guarantees the payments of principal and interest. - 110 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 13 -LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS(Continued) A. Future Long-Term Financing Requirements A summary of the City's future long-term debt funding requirements including principal and interest payments as of December 31, 2022 follows: GOVERNMENTAL ACTIVITIES General Obligation Bonds SpecialAssessment Bonds Income TaxRevenue Bonds* Years Principal Interest Total Principal Interest Total Principal Interest Total 2023 $615,000 $457,634 $1,072,634 $15,000 $78A $15,788 $584,001 $201,419 $785,420 2024 1,640,000 435,534 2,075,534 0 0 0 459,754 186,641 646,395 2025 470,000 401,734 871,734 0 0 0 473,739 172,657 646,396 2026 480,000 385,584 865,584 0 0 0 488,150 158,248 646,398 2027 490,000 371,184 861,184 0 0 0 502,999 143,400 646,399 2028-2032 2,240,000 1,655,343 3,895,343 0 0 0 2,754,021 477,989 3,232,010 2033-2037 2,965,000 1,255,594 4,220,594 0 0 0 1,789,197 77,643 1,866,840 2038-2042 2,450,000 732,550 3,182,550 0 0 0 0 0 0 2043-2047 2,125,000 334,444 2,459,444 0 0 0 0 0 0 2048-2052 475,000 17,813 492,813 0 0 0 0 0 0 Totals $13,950,000 $6,047,414 $19,997,414 $I5,000 $788 $15,788 $7,051,861 $1,417,997 $8,469,858 GOVERNMENTAL ACTIVITIES Special Obligation Non-Tax Revenue Bonds* OW DA Loans* Installment Loans Years Principal Interest Total Principal Interest Total Principal Interest Total 2023 $80,000 $92Q161 $I,OOQ161 5174,560 $112,509 $287,069 5534,235 $897,582 $1,431,817 2024 580,000 916,402 1,496,402 177,602 109,351 286,953 SSQ199 881,216 1,431,415 2025 585,000 909,399 1,494,399 180,819 106,134 286,953 571,197 863,838 1,435,035 2026 920,000 898,386 1,818,386 184,097 102,857 286,954 555,000 845,530 1,40Q530 2027 940,000 883,055 1,823,055 187,435 99,518 286,953 575,000 826,235 1,401,235 2028-2032 4,975,000 4,118,104 9,093,104 989,491 445,276 1,434,767 3,205,000 3,803,992 7,008,992 2033-2037 5,605,000 3,474,479 9,079,479 1,082,881 351,887 1,434,768 3,885,000 3,121,200 7,006,200 2038-2042 6,375,000 2,544,251 8,919,251 1,185,401 249,367 1,434,768 4,73Q000 2,279,000 7,009,000 2043-2047 6,975,000 1,446,613 8,421,613 1,297,973 136,795 1,434,768 5,75Q000 1,255,000 7,005,000 2048-2052 4,785,000 253,678 5,038,678 370,048 30,571 400,619 2,635,000 167,200 2,802,200 Totals $31,82Q000 $16,364,528 $48,184,528 $5,830,307 $1,744,265 57,574,572 $22,990,631 $14,940,793 $37,931,424 BUSINESS-TYPE ACTIVITIES Revenue Bonds General Obligation Bonds OWDA/OPWCLoans* Years Principal Interest Total Principal Interest Total Principal Interest Total 2023 $5,065,000 $4,163,672 $9,228,672 $25,000 $15,368 $40,368 $550,826 $37,385 $588,211 2024 5,25Q000 3,964,691 9,214,691 25,000 14,618 39,618 559,368 35,241 594,609 2025 5,470,000 3,783,686 9,253,686 25,000 13,868 38,868 56Q739 33,065 593,804 2026 5,715,000 3,559,320 9,274,320 25,000 13,118 38,118 562,143 3Q856 592,999 2027 4,76Q000 3,069,828 7,829,828 25,000 12,368 37,368 563,581 28,612 592,193 2028-2032 22,315,000 12,552,553 34,867,553 ]45,000 SQ535 195,535 2,78Q237 109,584 2,889,821 2033-2037 25,245,000 8,068,839 33,313,839 165,000 24,831 189,831 2,712,940 68,150 2,781,090 2038-2042 18,745,000 3,029,510 21,774,510 35,000 1,269 36,269 2,456,067 38,530 2,494,597 2043-2047 6,025,000 832,513 6,857,513 0 0 0 2,456,067 18,398 2,474,465 2048-2052 1,970,000 87,900 2,057,900 0 0 0 1,41$652 1,722 1,42Q374 Totals $1OQ560,000 $43,ll2,512 $143,672,512 $47Q000 $145,975 $615,975 $14,62Q620 $401,543 $15,022,163 BUSINESS-TYPE ACTIVITES Installment Loan Years P�incipal Interest Total 2023 $124,913 $0 $124,913 2024 127,976 0 127,976 Totals $252,889 $0 $252,889 *The Income Tax Revenue Bonds and Special Obligation Non-Tax Revenue Bonds are direct placement debt. The Ohio Water Development Authority Loans and Ohio Public Works Commission Loans are direct borrowing debt. - 111 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 13 -LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS(Continued) The City's total debt margin was $88,092,141 at December 31, 2022. The Ohio Revised Code provides that the net debt of a municipal corporation,when approved by the electors, shall not exceed 10.5% of the total value of all property in the municipal corporation as listed and assessed for taxation. In addition,the unvoted net debt of municipal corporations cannot exceed 5.5% of the total taxable value of property. The statutory limitations on debt are measured by a direct ratio of net debt to tax valuation and expressed in terms of a percentage. B. Installment Loans In June 2022 the City received a $384,003 installment loan for the purchase of a vacuum truck. The loan carries an interest rate of 2.45% and matures in 2024. In April 2022 the City received a $150,561 installment loan for the purchase of a truck mounted leaf collector. The loan carries an interest rate of 3.25% and matures in 2025. In March 2019 the City received $24,768,150 from the Hamilton Community Authority (a discretely presented component unit) for sale of the Hamilton Government Building located at 345 High Street. Amounts received from the Authority will be paid back over a period of 30 years, after which time the City will own the building. The building is reported by the City as Governmental Activities capital assets at historical cost. The total loan balance at December 31, 2022 was $22,900,000. C. Conduit Debt From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2022, there were two series of Industrial Revenue Bonds outstanding with an aggregate principal amount payable of$7,ll 5,288. D. Ohio Water Development Authoritv Loans Spooky Nook Improvements - In 2020 the City entered into an agreement with the OWDA, as administrator far the U. S. Environmental Protection Agency(EPA), for the City to receive a loan for public infrastructure improvements at the Spooky Nook project. The total amount is subject to change and has not been finalized. The interest rate on the loan is 1.47°/o, per annum. This loan is payable from storm water collection charges and is received by the City in increments as the project is completed. As of December 31, 2022, the City had received $2,787,348 from OWDA. Subsequent amounts will be received in future years. - 112 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 13 -LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS(Continued) E. Ohio Public Works Commission Loans Highland Park Water Main Replacement- In 2020 the City obtained financing through the Ohio Public Warks Commission for a water main replacement project in the Highland Park area at an interest rate of 0%. This loan is received by the City in increments as the project is completed. As of December 31, 2022, the City had received $2,121,337 from OPWC. Subsequent amounts will be received in future years. SOID Sanitary Sewer Relocation - In 2021 the City obtained financing through the Ohio Public Works Commission for sanitary sewer improvements at an interest rate of 0%. This loan is received by the City in increments as the project is completed. As of December 31, 2022,the City had received$2,398,860 from OPWC. Subsequent amounts will be received in future years. F. Claim Payable The City is reporting a $3,500,000 claim payable to St. Clair Township. The liability is the result of a settlement between the City and Township involving the annexation of property by the City from the Township. The liability will be paid over a period of 10 years at an interest rate of 3.0%. G.Pledged Revenue Coverage The Gas Utility revenue bonds are payable from the net revenue derived from operations of the gas utility and are secured by a pledge of and lien on such net revenues until the bond maturity dates of 2027 and 2038. In 2022 the Gas Fund reported $1,340,690 of net pledged revenues for coverage of a principal and interest debt service requirement of$774,135. The Electric Utility revenue bonds are payable from the net revenue derived from operations of the electric utility and are secured by a pledge of and lien on such net revenues until the bond maturity dates of 2030, 2039, and 2049. In 2022 the Electric Fund reported $15,765,206 of net pledged revenues for coverage of a principal and interest debt service requirement of$2,756,050. The Water Utility revenue bonds are payable from the net revenue derived from operations of the water utility and are secured by a pledge of and lien on such net revenues until the bond maturity dates of 2029, 2039, 2044, 2048, and 2049. In 2022 the Water Fund reported $3,987,615 of net pledged revenues for coverage of a principal and interest debt service requirement of$2,052,688. The Wastewater Utility revenue bonds are payable from the net revenue derived from operations of the wastewater utility and are secured by a pledge of and lien on such net revenues until the bond maturity dates of 2026, 2039, and 204L In 2022 the Wastewater Fund reported $4,832,142 of net pledged revenues for coverage of a principal and interest debt service requirement of $3,446,551. - 113 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 14—LEASES A. Leases Receivable The City leases various office space and a cell phone tower as lessor. In 2022 the City received $296,630 in lease revenue and $16,490 in interest payments. Total lease receivable balances at December 31, 2022 are as follows: Fund Leases Receivable General Fund $4,908,155 Golf Course Fund 60,574 Electric Fund 178,676 Tota1 Leases Receivable $5,147,405 B. Leases Pavable The City leases various office space and police equipment. The following is a schedule of future lease payments as of December 31, 2022: Leases Payable - Governmental Activities Years Principal Interest Total 2023 $111,899 $11,095 $122,994 2024 90,301 5,981 96,282 2025 43,430 3,374 46,804 2026 45,200 1,604 46,804 2027 15,473 129 15,602 Totals $306,303 $22,183 $328,486 - 114 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 15 -INSURANCE AND RISK MANAGEMENT The City is exposed to various risks of loss related to torts and liability; damage to and theft of or destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City maintains a number of insurance coverages in order to protect against the various risks mentioned above. Those coverages are as follows: Property Insurance $242,145,219 Limit Earthquake $25,000,000 Flood $10,000,000 Ordinance or Law Coverage $1,250,000 Extra Expense Designated Locations $1,500,000 Valuable Papers Restoration $1,250,000 Electric Property Insurance $391,643,587 Limit Earthquake $50,000,000 Flood $50,000,000 Demolition and Increased Cost Construction $10,000,000 Newly Acquired Locations $5,000,000 Misc. Unnamed Locations $250,000 Boiler and Machinery $40,000,000 Limit Auto $1,000,000 Limit Comprehensive and Collision $20,000 Deductible Garage Keepers Liability $500,000 Limit Crime—Theft of Money and Securities In/Out $500,000 Limit Forgery and Alteration Coverage $500,000 Limit Public Officials Bond—Treasurer $500,000 Limit Public Officials Bond—All Others $500,000 Limit Police Professional Liability(per occurrence) $1,000,000 Limit - 115 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 15 -INSURANCE AND RISK MANAGEMENT(Continued) Public Officials Liability $1,000,000 Limit Public Utilities Excess Liability $80,000,000 Limit Claims Made Retroactive 4/86 Combined Products Liability Completed Operations Liability Failure to Supply Liability Pollution Liability Medical Malpractice Liability General Liability(per occurrence) $1,000,000 Limit Products,Personal Injury, Stop Gap Liability $1,000,000 Limit Ambulance Attendants Errors and Omissions $1,000,000 Limit Pollution Legal Liability $10,000,000 Aggregate Named NDD Housing Lead Abatement One Year Term Umbrella $19,000,000 Limit Does not apply separately over the underlying/primary coverages Third-party liability coverage is subject to a $100,000 Self-Insured Retention (SIR). A $400,000 total Self-Insured Retention (SIR) (annual) will be applicable to Public Entity General Liability, Employee Benefit, Plan Administration Liability, Employment Practices Liability, Liquor Liability, Law Enforcement Liability, Auto Liability, and Public Entity Management Liability. This will act as an aggregate stop loss maximum. Third party claims adjustment services are provided by Travelers Insurance as per the terms of the City of Hamilton's contract with Travelers Insurance for SIR claims and Cunningham Lindsey U.S. Inc. for utility claims. There has been no significant reduction in coverage in 2022. Settled claims did not exceed this commercial coverage in any of the past three years. - 116 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 15 -INSURANCE AND RISK MANAGEMENT(Continued) A. Self-Insurance Medical coverage is offered to employees through a self-funded insurance plan. The plan is offered to local governments state-wide through the Jefferson Health Plan (JHP) in Steubenville, Ohio and administered by United Healthcare of Ohio. The City participates in the plan and makes payment to the Risk Management Agency based on actuarial estimates of the amounts needed to pay claims and actual amounts needed to pay �xed costs (premiums for stop-loss coverage and medical conversion and administrative fees and services). The claims liability of$1,259,703 reported in the General Fund at December 31, 2022 is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. This amount is non-discounted and is based upon historical claims experience. Changes in the claims liability in 2021 and 2022 was as follows: C�rrent Year Beginning of Clairns and End of Year Changes in Claiins Year Year Liability Estimates Payments Liability 2021 $760,605 8,553,487 (8,281,713) $1,032,379 2022 1,032,379 7,414,988 (7,187,664) 1,259,703 B.BWC Group Retrospective Rating Program The City participates in the Ohio BWC Group Retrospective Rating Program. The Group Retrospective Rating Program is a performance-based incentive program designed to recover a portion of premium for employers that reduce injury rates and lower associated claims costs. Group retrospective rating member employers initially pay their individual experience rated premium to the BWC as if they were not in a retro group. The total of the individual premiums for the group members is the "standard premium" of the group. 12 months after the end of the policy year, the BWC will calculate the group retrospective premium, based upon developed incurred claim losses of the entire group. The BWC will then compare the group retrospective premium to the standard premium. If the retrospective premium is lower than the standard premium, group members will receive a rebate of the difference. If the retrospective premium is higher, each group member will be charged an assessment to cover the shortfalL This calculation is done again at 24 and 36 months, providing a financial incentive for group members to continuously work on safety and claims management. - 117 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 15 -INSURANCE AND RISK MANAGEMENT(Continued) C. BWC Individual Retrospective Rating Program In prior years the City was enrolled in the Ohio BWC's Individual Retrospective Rating program. Each retrospective rated policy year carries a 10 year liability period. The Individual Retrospective Rating provided the City with an up-front premium discount in exchange for assuming dollar-for-dollar claims liability for any claim filed during the Retrospective Rating policy year. There is a maximum per claim limit and an aggregate policy limit in Retrospective Rating. For 2022 Hamilton's per claim limit is $200,000 and its aggregate policy limit is 150% of the standard premium(i.e.,premium before the Individual Retrospective Rating discount and less BWC administrative costs). The claims liability of$11,471 reported in the General Fund at December 31, 2022 is based on the requirements of GASB Statement No. 10,which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the claims liability amount are as follows: Current Year Beginning of Claims and Year Changes in Claims End of Year Year Liability Estimates Payments Liability 2021 $23,925 $7,003 ($23,925) $7,003 2022 7,003 11,471 (7,003) 11,471 NOTE 16—SIGNIFICANT COMMITMENTS A. Encumbrance Commitments At December 31, 2022 the City had encumbrance commitments in the Governmental Funds as follows: Fund Encumbrances General Fund $3,159,400 Hamilton Capital Improvement Fund 2,683,194 Criminal Justice Center Construction Fund 50,000 Other Governmental Funds 7,720,053 Total Governmental Funds $13,612,647 - 118 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 16—SIGNIFICANT COMMITMENTS (Continued) B. Contractual Commitments As of December 31, 2022, the City had contractual commitments related to property, plant and equipment improvements and additions, as well as various other contracts and agreements to provide or receive services related to the operations of the City. The list below reflects the major contracts that comprise commitments at December 31, 2022: Contractual Vendor Commitment Capital Electric Line Builders $1,422,992 RA Mi1lerConstruction Co Inc 845,005 Sunesis Construction Company 818,552 C.G.Construction&Utilities Inc 655,503 InsituformTechnologies LLC 597,035 Mi De Con Inc 550,000 Milcon Concrete Inc 514,933 Community Improvement Corp of Hamilton Ohio 498,880 Kramer&Feldman,Inc 452,074 Bansal Construction Inc 426,077 Wolfe House Movers ofIndiana LLC 370,000 Adleta Inc 364,512 The Hydaker Wheatlake Company 321,547 Rumpke 296,327 Lithko Restoration Technologies 290,602 Mi De Con Inc 273,654 Altec Industries Inc 248,846 Structured Solutions LI,C 178,548 ProPump Services LL,C 177,919 Johnsons Fire Equipment DBA Johnsons Emergency Vehicles 171,554 Butler Co Sheriffs Office 165,991 Rack&Ballauer E�avating 152,964 $9,793,515 - 119 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 17—CONTINGENCIES A. Litigation Various claims and lawsuits are pending against the City. The City believes that the ultimate disposition of such claims and lawsuits will not have a material adverse effect on the City's financial position. B.Federal and State Grants For the period January 1, 2022 to December 31, 2022, the City received federal and state grants for specific purposes that are subject to review and audit by grantor agencies or their designee. Such audits could lead to a request for reimbursement to the grantor agency for expenditures disallowed under the terms of the grant. Based on prior experience, the City believes such disallowance, if any,would be immaterial. C.Asset Retirement Obligations GASB Statement No. 83 "Certain Asset Retirement Obligations" establishes criteria for determining the recognition of a liability for an Asset Retirement Obligation(ARO). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. Recognition of the ARO occurs when the liability is both incurred and reasonably estimable. An ARO is incurred based on external laws,regulations, or contracts. Ohio Revised Code Section 61ll.44 requires the City to submit any changes to their sewage treatment system to the Ohio EPA for approval. Through this permitting process, the City would be responsible to address any public safety issues associated with their sewage treatment facilities and the permit would specify the procedures required to dispose of all or part of the sewage treatment plant. At this time, the City does not have an approved permit from the Ohio EPA to dispose of all or part of their sewage treatment plants. Due to the lack of specific legal requirements for retiring the sewage treatment plants, the City has determined that the amount of the Asset Retirement Obligation cannot be reasonably estimated. The City's licenses with the Federal Energy Regulatory Commission for operation of the Greenup Hydroelectric Plant on the Ohio River and the City of Hamilton Hydroelectric Plant on the Great Miami River state that, upon retirement of the facility, the Commission may require the City to remove any or all structures, equipment, and power lines within the project boundary and take any such other action necessary to restore the project waters, lands, and facilities remaining. At this time, the City has no plans of retiring these plants and therefore is unable to know what the Commission's requirements would be. Due to the lack of specific license requirements for the retiring of the hydroelectric plants, the City has determined that the amount of the Asset Retirement Obligation cannot be reasonably estimated. - 120 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 18—JOINT VENTURES The City of Hamilton is a member of a number of Governmental Joint Ventures as described in GASB Statement No. 6L The following is a list of organizations and a brief description of each Joint Venture. A. Hamilton-Indian Springs Joint Economic Development Districts In 1996, the Hamilton-Indian Springs Joint Economic Development District (JEDD) between the City of Hamilton and Fairfield Township was approved by Fairfield Township voters. It set aside over 200 acres of prime land, zoned for business and industrial, to be serviced jointly as specified in the contract and marketed for commercial/industrial development. The original JEDD authorized a 2% earnings tax on all business within its boundaries, of which 75% flows to the City and 25°/o flows to the Township. One stipulation of the JEDD agreement is that the City of Hamilton will not annex any township land for the 30-year term of the contract. In exchange, 12 acres of county-owned land on the boundary between Hamilton and the Township was transferred to the City. The JEDD contains Menards, which opened in 2011, a home improvement chain store with locations throughout the Midwestern United States. Construction was completed on a new Hobby Lobby store in 2015 and Discount Tire and AAA Storage opened for business during 2016. An amendment to the JEDD was approved in August 2004 to add over 100 acres of retail development. This amendment reversed the collection percentage of the entities (75% for Fairfield Township and 25°/o for the City) for this section of land. To date, the development in the JEDD areas has proceeded at a strong pace. A number of projects and developments have occurred within all phases of the JEDD, including several banks and restaurants, as well as stores such as Wal-Mart, Target, Dick's, Best Buy, JC Penney, Staples and a variety of other retail establishments. The interchange was upgraded and the State Route 4 By-Pass was widened to provide improved access to the JEDD. Due to this JEDD's location around the interchange of State Route 129 and the State Route 4 By-Pass, additional retail and commercial development is expected to continue at this location into the future. In April 2017, a second amendment to the JEDD was approved to add approximately 184 acres. Income tax collections in this area are distributed 50°/o to the City of Hamilton and 50% to Fairfield Township. The land comprising the JEDD around the intersection of Gilmore Road and Hamilton Mason Road includes an assisted living facility operated by StoryPoint Senior Living on about 15 acres of the land. During 2022, the City's distribution of tax collections for the Hamilton-Indian Springs Joint Economic Development District totaled$751,351. B.American Municipal Power(AMP)—OMEGA JV2 Proiect In December 2000, the City became a part of the OMEGA (Ohio Municipal Energy Generation Association) JV2 Project. The OMEGA JV2 project is a joint venture among the City of Hamilton and 35 other participating municipalities created under the auspices of the Ohio Constitution Section XVIII, Sections 3 and 4 and Ohio Revised Code Section 715.02. All of the participating communities are members of AMP, Inc. and the joint venture has appointed that non-profit corporation to perform certain management functions. - 121 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 18—JOINT VENTURES (Continued) B.American Municipal Power(AMP)—OMEGA JV2 Prolect(Continued) The purpose of the joint venture is to create distributive generation among the participating members allowing for increased electric production capacity during peak demand. The degree of control exercised by any participating member is weighted in proportion to each participanYs project share, which is 23.87% for the City (a non-majority voting position). Project share is equal to the amount of distributive generation capacity for each of the members. Membership in the joint venture is defined as financing or non-financing participant, as well as an owner or purchasing participant, for which the City qualifies as a financing, purchasing participant. As a �nancing purchasing participant, the City makes payments to OMEGA JV2. The continued existence of OMEGA JV2 is dependent upon the City's continued participation, but the City, as a financing purchasing participant, does not have an equity interest in OMEGA JV2. Complete financial statements may be obtained from AMP, Inc., 1111 Schrock Road, Columbus, Ohio 43219. C. Meldahl Hydroelectric Proiect AMP constructed a three-unit hydroelectric generation facility on the Captain Anthony Meldahl Locks and Dam, an existing dam, on the Ohio River, constructed by the United States Army Corps of Engineers and of related equipment and associated transmission facilities (the "Meldahl Project"). Now that the Meldahl Project has entered commercial operation, it has a generating capacity of approximately 105 MW. The City of Hamilton and AMP hold, as co-licensees, the Federal Energy Regulatory Commission license to operate the Meldahl Project. The City of Hamilton has executed a take-or-pay power sales contract with AMP for a Project Share of 54MW or 51.4°/o of capacity and associated energy from the Meldahl Project. Pursuant to the various agreements between Hamilton and AMP,the Meldahl Project is owned by Meldahl, LLC, a single member, Delaware not-for-profit limited liability company ("Meldahl, LLC"). AMP is the sole member of Meldahl, LLC and appoints three members of its Board of Directors (the Meldahl Board). AMP, acting as agent of Meldahl LLC, has financed the development, acquisition, construction and equipping of the Meldahl Project. In order to finance the construction of the Meldahl Project and related costs, in 2010 and 2011 AMP issued six series of its Meldahl Hydroelectric Project Revenue Bonds (the "Meldahl Bonds") in the amount of $685,100,000 consisting of taxable, tax-exempt and tax advantaged obligations (Build America Bonds, Clean Renewable Energy Bonds and New Clean Renewable Energy Bonds). The Meldahl Bonds are secured by a master trust indenture and payable from amounts received by AMP under a take-or-pay power sales contract with 48 of its Members. The Meldahl Project entered commercial operation on April 12, 2016. - 122 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 19—JOINTLY GOVERNED ORGANIZATIONS The City of Hamilton is a member of a number of Jointly Governed Organizations as described in GASB Statement No. 61. The following is a list of organizations and a brief description of each Jointly Governed Organization. A. AMP,Inc. The City of Hamilton is a member of American Municipal Power, Inc. (AMP). AMP is a non- profit corporation organized under Ohio law and Internal Revenue Code Section 501 and is a jointly governed organization. The organization operates on a non-profit basis for the mutual benefit of its member municipalities, all of whom own or operate a municipal electric system. The non-profit corporation is dedicated to providing member assistance and low-cost power supplies. The controlling board of AMP, Inc. is based upon a representative from several of the member communities. The degree of control exercised by any participating government is limited to its representation on the board. The continued existence of the corporation is not dependent upon the City. Complete financial statements may be obtained from AMP, Inc., 1111 Schrock Road, Columbus, Ohio 43229. B. Transportation Improvement District of Butler Countv The Transportation Improvement District of Butler County (TID), a jointly governed organization, provides the opportunity to construct roads, bridges, and accompanying improvements within the County. The TID's Board of Trustees,which consists of representatives from Butler County, two cities and three townships, oversees the operation of the District. The continued existence of the TID is not dependent upon the City of Hamilton's continued participation and the City of Hamilton has no equity interest in the Transportation Improvement District. Complete financial statements can be obtained from the Transportation Improvement District, 1921 Fairgrove Ave., Hamilton, Ohio 45011. C. Butler County Emergency Management AgenCV The Butler County Emergency Management Agency (EMA) is a jointly governed organization whose membership consists of Butler County, five cities including the City of Hamilton, and seven villages. The EMA was created by a countywide agreement with the Butler County Commissioners and is intended to provide cooperative effort between all local governments to manage disaster relief and coordinate with the Federal Emergency Management Agency (FEMA) in times of crisis. The twenty-six members of the advisory council comprise one County Commissioner and the chief official of each of the local government members. The continued existence of the Butler County Emergency Management Agency is not dependent upon the City's continued participation and the City of Hamilton has no equity interest in the Butler County EMA. Complete financial statements can be obtained from the Butler County Emergency Management Agency, 315 High Street, Hamilton, Ohio 45011. - 123 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 19—JOINTLY GOVERNED ORGANIZATIONS (Continued) D. Hamilton Communitv Improvement Corporation The Hamilton Community Improvement Corporation (CIC) was incorporated under Internal Revenue Code Section 501(c)(6) in 1966 to advance, encourage, and promote the industrial, economic, commercial, and civil development of the City of Hamilton and the area surrounding it. The CIC is a jointly governed organization. The Board of Trustees of the CIC provides oversight to the CIC's operations and is comprised of inembers representing the City of Hamilton, the Greater Hamilton Chamber of Commerce and local business officials. The City does not maintain a voting majority on the Board and the CIC is not dependent on the City's continued participation for its continued existence. Complete financial statements can be obtained from the Hamilton Community Improvement Corporation, 345 High Street, Hamilton, Ohio 45011. E. Hamilton Economic Development Corporation The Hamilton Economic Development Corporation (HEDC) was organized to provide increased awareness to Downtown Hamilton businesses and to foster economic growth within the City. The corporation was formed under Internal Revenue Code Section 501(c)(6) and is a jointly governed organization. The HEDC's Board provides oversight to the activities of the organization. The Board consists of the City Manager of Hamilton, the Mayor and Vice-Mayor of Hamilton, one County Commissioner,the Superintendent of the Hamilton City School District, and the thirty-three members of the Hamilton Chamber of Commerce. The City does not maintain a voting majority on the Board and the HEDC is not dependent on the City's continued participation for its continued existence. Complete financial statements can be obtained from the HEDC, 201 Dayton Street, Hamilton, Ohio 450ll. F. Ohio-Kentucky-Indiana Regional Council of Governments The Ohio-Kentucky-Indiana Regional Council of Governments (OKI), a jointly governed organization, was established to provide coordinated planning services to the appropriate federal, state and local governments, their political subdivisions, agencies, departments, instrumentalities, and special districts, in connection with the preparation and development of comprehensive and continuing regional transportation and development plans within the OKI Region. The OKI region includes Butler, Clermont, Hamilton, and Warren Counties in Ohio, Boone, Campbell and Kenton Counties in Kentucky, and Dearborn and Ohio Counties in Indiana. OKI contracts for local funds and other support with the governing board of each of the governments who are members of OKI or with such other persons as may be appropriate to provide such funds and support. The support is based on the population of the area represented. A Board of Trustees was created for conducting the activities of the OKL This Board consists of one elected official of each City and municipal corporation, one individual selected by each City planning agency or commission and one person selected by each planning agency or commission of each municipal corporation located in each member City. - 124 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 19—JOINTLY GOVERNED ORGANIZATIONS (Continued) F. Ohio-Kentucky-Indiana Regional Council of Governments (Continued) This Board of Trustees then selects not more than ten residents of the OKI Region. The total membership of the Board of Trustees shall not exceed 100. Any member of OKI may withdraw its membership upon written notice to OKI effective two years after receipt of the notice by OKI. To obtain financial statements of the Ohio-Kentucky-Indiana Regional Council of governments, write to OKI at 720 E.Pete Rose Way, Suite 420, Cincinnati, OH 45202. NOTE 20—ENTERPRISE INTERFUND REVENUES AND ADMINISTRATIVE CHARGES The City's Utility Enterprise activities (Gas, Electric, Water and Wastewater) make sales to one another on both a daily basis and a non-routine basis, at standard utility rates defined by municipal ordinance. During 2022, the Electric Fund purchased $166,158 of natural gas from the Gas Fund. This amount is reflected in the purchased electric expense account in the Electric Fund and as charges for services in the Gas Fund. The Water and Wastewater Funds purchased electric services from the Electric Fund in the amount of $1,232,743 and $782,366 respectively, during 2022. These amounts are recorded in the Water and Wastewater Funds as contractual services and as charges for services in the Electric Fund. The City's Electric System provides street and traffic lighting services to the City and the estimated operating cost of supplying these services was approximately $295,000 for the year ending December 31, 2022. Beginning in 2009, Council approved a policy to provide certain utility costs to general government facilities at no cost. The estimated operating cost of supplying gas, water, and wastewater utilities at no cost to general governmental facilities was estimated to be $230,000 for the year ending December 31, 2022. The Utility Systems are allocated a portion of the City's administrative cost from the General Fund. In addition, each Utility is charged expenses by the City's Internal Service Funds. Represented below is the amount charged to each Utility Fund by type of charge or activity for 2022. Gas Electric Water Wastewater Administrative cost(General Fund) $1,435,502 $1,607,539 $1,435,502 $1,304,761 Central Services Fund 2,545,664 2,520,699 1,546,759 1,489,905 Fleet Maintenance Fund 383,411 604,846 296,667 67,368 Total $4,364,577 $4,733,084 $3,278,928 $2,862,034 - 125 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 21 —DISCRETELY PRESENTED COMPONENT UNIT The component unit column in the government-wide financial statements includes the financial data of the City's discretely presented component unit,the Hamilton Community Authority(Authority). A. Basis of Accounting The basic financial statements of the Authority are prepared using the accrual basis of accounting in conformity with GAAP. B. Basis of Presentation The Authority's basic financial statements consist of a statement of net position, a statement of revenues, expenses and changes in net position, and a statement of cash flows. C. Deposits As of December 31, 2022, the Authority had $14,007 in cash on deposit with US Bank(Trustee) and $6,641,059 on deposit with Huntington Bank (Trustee) in accordance with the Authority's Master Trust Agreements with the Trustees. The amount on deposit with the Trustees consists of US Treasury money market funds, US Treasury Bills, and Certificates of Deposit. These accounts are reported as cash and investments on the Statement of Net Position. D. Loan Receivable In March 2019, the Authority issued $24,860,000 in revenue bonds to purchase the Hamilton Government Building located at 345 High Street for $24,768,150. Amounts received by the City will be paid back over a period of 30 years, after which time the City will own the building. The Authority has pledged the payments received from the City for the payment of principal and interest on the bonds. In 2022,the City paid the Authority$1,399,047. The following is a schedule of future loan payments to be received from the City as of December 31, 2022: L.oan Receivable Years Principal Interest Total 2023 $505,000 $894,592 $1,399,592 2024 520,000 879,190 1,399,190 2025 540,000 862,810 1,402,810 2026 555,000 845,530 1,400,530 2027 575,000 826,235 1,401,235 2028-2032 3,205,000 3,803,992 7,008,992 2033-2037 3,885,000 3,121,200 7,006,200 2038-2042 4,730,000 2,279,000 7,009,000 2043-2047 5,750,000 1,255,000 7,005,000 2048-2049 2,635,000 167,200 2,802,200 Totals $22,900,000 $14,934,749 $37,834,749 - 126 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 21—DISCRETELY PRESENTED COMPONENT UNIT(Continued) E. Lon�-Term Debt Debt activity for the Authority for the year ended December 31, 2022 was as follows: Balance Balance December 31, December 31, Due Within 2021 Additions Reducrions 2022 One Year 2019 Building Revenue Bonds $23,390,000 $0 ($490,000) $22,900,000 $505,000 2020 PACE Bonds 32,020,000 0 0 32,020,000 485,000 2020 TIF'Bonds 36,090,000 0 (10,000) 36,080,000 25,000 2021 Parking Revenue Bonds 12,900,000 0 0 12,900,000 190,000 Bond Premium(Discount) (2,703,089) 0 91,491 (2,611,598) 0 Total Bonds $101,696,9ll $0 ($408,509) $101,288,402 $1,205,000 The Authority issued revenue bonds to purchase the Hamilton Government Building located at 345 High Street in 2019. The City is making annual payments to the Authority. The Authority has pledged the payments received from the City for the payment of principal and interest on the revenue bonds. The Property Assessed Clean Energy (PACE) Bonds were issued to finance energy improvements at the Champion Mill Spooky Nook Sports Complex site. The City has levied special assessments on the project site, which will be collected and remitted to the Authority. The debt will be retired by the assessments collected from the project site owner. The Authority is reporting a receivable from the City for the assessments to be collected by the City and remitted to the Authority. The Authority issued Tax Increment Financing (TIF) Bonds in 2020 to fund infrastructure improvements at the Champion Mill Spooky Nook Sports Complex site. The bonds will be retired with payments in lieu of taxes received from the property owner. In 2021, the Authority issued $12,900,000 of Revenue Bonds to be used for developer parking lot improvements and City of Hamilton Parking lot improvements for the Spooky Nook Sports Complex. Repayment of debt will be made with community development charges and net parking revenue. - 127 - CITY OF HAMILTON, OHIO Notes to the Basic Financial Statements For the Year Ended December 31, 2022 NOTE 22—CHANGE IN ACCOUNTING PRINCIPLE For 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, "Leases," Statement No. 91, "Conduit Debt Obligations," Statement No. 92, "Omnibus 2020," and Statement No. 93, "Replacement of Interbank Offered Rates." GASB Statement No. 87 establishes standards of accounting and financial reporting for leases. GASB Statement No. 91 establishes a single method of reporting conduit debt obligations. GASB Statement No. 92 establishes accounting and financial reporting requirements for specific issues related to leases, intra-entity transfers of assets, postemployment benefits, government acquisitions, risk �nancing and insurance-related activities of public entity risk pools, fair value measurements, and derivative instruments. GASB Statement No. 93 establishes accounting and financial reporting requirements related to the replacement of interbank offered rates in hedging derivative instruments and leases. The implementation of these Statements had no effect on beginning net position/fund balance. - 128 - CITY OF HAMILTON, OHIO REQUIRED SUPPLEMENTARY INFORMATION - 129 - CITY OF HAMILTON, OHIO Schedule of City's Proportionate ShaNe of the Net Pension Liability- Cost Sharing Plans Last Nine Years Ohio Public Employees Retirement System Year 2014 2015 2016 City's proportion of the net pension liability 0.195707% 0.195707% 0.180651% Ciry's proportionate share of the net pension liability $23,071,305 $23,604,447 $31,291,101 City's covered payroll $24,119,685 $24,075,983 $22,863,367 Ciry's proportionate share of the net pension liability as a percentage of its covered payroll 95.65% 98.04% 136.86% Plan fiduciary net position as a percentage of the total pension liability 86.36% 86.45% 81.08% Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2014 2015 2016 Ciry's proportion of the net pension liability 0.738902% 0.738902% 0.702774% City's proportionate share of the net pension liability $35,986,826 $38,278,184 $45,209,938 Ciry's covered payroll $14,795,978 $14,571,091 $14,408,748 City's proportionate share of the net pension liability as a percentage of its covered payroll 243.22% 262.70% 313.77% Plan fiduciary net position as a percentage of the total pension liability 73.00% 72.20% 66.77% Source: Finance Director's Office and the Ohio Police and Fire Pension Fund Notes: The City implemented GASB Statement 68 in 2015. The schedule is intended to show ten years of information. Additional years will be displayed as they become available. Information prior to 2014 is not available. The schedule is reported as of the measurement date of the Net Pension Liability, which is the prior year end. - 130 - CITY OF HAMILTON, OHIO Schedule of City's Proportionate ShaNe of the Net Pension Liability- Cost Sharing Plans Last Nine Years Ohio Public Employees Retirement System Year 2017 2018 2019 City's proportion of the net pension liability 0.181112% 0.194154% 0.192963% City's proportionate share of the net pension liability $41,127,343 $30,459,006 $52,848,657 City's covered payroll $23,579,133 $25,659,746 $26,172,393 City's proportionate share of the net pension liability as a percentage of its covered payroll 174.42% ll 8.70% 201.93% Plan fiduciary net position as a percentage of the total pension liability 77.25% 84.66% 74.70% Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2017 2018 2019 City's proportion of the net pension liability 0.684675% 0.711449% 0.708997% City's proportionate share of the net pension liability $43,366,613 $43,664,825 $57,872,890 City's covered payroll $14,718,583 $15,525,792 $16,127,372 City's proportionate share of the net pension liabiliry as a percentage of its covered payroll 294.64% 281.24% 358.85% Plan fiduciary net position as a percentage of the total pension liability 68.36% 70.91% 63.07% Source: Finance Director's Office and the Ohio Police and Fire Pension Fund - 131 - CITY OF HAMILTON, OHIO Schedule of City's Proportionate ShaNe of the Net Pension Liability- Cost Sharing Plans Last Nine Years Ohio Public Employees Retirement System Year 2020 2021 2022 City's proportion of the net pension liabiliry 0.192546% 0.192842% 0.196555% City's proportionate share of the net pension liability $38,058,030 $28,555,709 $17,101,085 City's covered payroll $27,177,157 $27,451,886 $27,629,593 City's proportionate share of the net pension liability as a percentage of its covered payroll 140.04% 104.02% 61.89% Plan fiduciary net position as a percentage of the total pension liability 82.17% 86.88% 92.62% Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2020 2021 2022 City's proportion of the net pension liability 0.700746% 0.713153% 0.739344% City's proportionate share of the net pension liability $47,205,981 $48,616,268 $46,189,957 City's covered payroll $16,769,908 $17,643,755 $18,147,094 City's proportionate share of the net pension liability as a percentage of its covered payroll 281.49% 275.54% 254.53% Plan fiduciary net position as a percentage of the total pension liability 69.89% 70.65% 75.03% Source: Finance Director's Office and the Ohio Police and Fire Pension Fund Notes: The City implemented GASB Statement 68 in 2015. The schedule is intended to show ten years of information. Additional years will be displayed as they become available. Information prior to 2014 is not available. The schedule is reported as of the measurement date of the Net Pension Liability, which is the prior year end. See accompanying notes to the required supplementary information - 132 - CITY OF HAMILTON, OHIO Schedule of City Pension Contributions- Cost Sharing Plans Last Ten YeaNs Ohio Public Employees Retirement System Year 2013 2014 2015 2016 Contractually required contribution $3,135,559 $2,889,118 $2,743,604 $2,829,496 Contributions in relation to the contractually required contribution 3,135,559 2,889,118 2,743,604 2,829,496 Contribution deficiency(excess) $0 $0 $0 $0 City's covered payroll $24,119,685 $24,075,983 $22,863,367 $23,579,133 Contributions as a percentage of 13.00% 12.00% 12.00% 12.00% covered payroll Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2013 2014 2015 2016 Contractually required contribution $2,673,790 $3,091,205 $3,060,364 $3,127,255 Contributions in relation to the contractually required contribution 2,673,790 3,091,205 3,060,364 3,127,255 Contribution deficiency(excess) $0 $0 $0 $0 City's covered payroll $14,795,978 $14,571,091 $14,408,748 $14,718,583 Contributions as a percentage of 18.07% 21.21% 21.24% 21.25% covered payroll Source: Finance Director's Office and the Ohio Police and Fire Pension Fund - 133 - CITY OF HAMILTON, OHIO Schedule of City Pension Contributions- Cost Sharing Plans Last Ten YeaNs Ohio Public Employees Retirement System Year 2017 2018 2019 Contractually required contribution $3,335,767 $3,664,135 $3,804,802 Contributions in relation to the contractually required contribution 3,335,767 3,664,135 3,804,802 Contribution deficiency (excess) $0 $0 $0 City's covered payroll $25,659,746 $26,172,393 $27,177,157 Contributions as a percentage of 13.00°/o 14.00°/o 14.00% covered payroll Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2017 2018 2019 Contractually required contribution $3,291,033 $3,409,109 $3,544,582 Contributions in relation to the contractually required contribution 3,291,033 3,409,109 3,544,582 Contribution deficiency (excess) $0 $0 $0 City's covered payroll $15,525,792 $16,127,372 $16,769,908 Contributions as a percentage of 21.20% 21.14% 21.14% covered payroll Source: Finance Directar's Office and the Ohio Police and Fire Pension Fund - 134 - CITY OF HAMILTON, OHIO Schedule of City Pension Contributions- Cost Sharing Plans Last Ten YeaNs Ohio Public Employees Retirement System Year 2020 2021 2022 Contractually required contribution $3,843,264 $3,868,143 $4,014,875 Contributions in relation to the contractually required contribution 3,843,264 3,868,143 4,014,875 Contribution deficiency (excess) $0 $0 $0 City's covered payroll $27,451,886 $27,629,593 $28,677,679 Contributions as a percentage of 14.00°/o 14.00°/o 14.00% covered payroll Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2020 2021 2022 Contractually required contribution $3,732,159 $3,839,298 $4,184,855 Contributions in relation to the contractually required contribution 3,732,159 3,839,298 4,184,855 Contribution deficiency (excess) $0 $0 $0 City's coveredpayroll $17,643,755 $18,147,094 $19,887,089 Contributions as a percentage of 21.15% 21.16% 21.04% covered payroll Source: Finance Directar's Office and the Ohio Police and Fire Pension Fund Notes: The City implemented GASB Statement 68 in 2015. See accompanying notes to the required supplementary information - 135 - CITY OF HAMILTON, OHIO Schedule of City's Proportionate ShaNe of the Net Other Postemployment Benefits (OPEB) Liability (Asset) - Cost Sharing Plans Last Six Years Ohio Public Employees Retirement System Year 2017 2018 2019 Ciry's proportion of the net OPEB liability(asset) 0.184216% 0.196423% 0.195454% City's proportionate share of the net OPEB liabiliry (asset) $18,606,477 $21,330,123 $25,482,589 Ciry's covered payroll $23,579,133 $25,659,746 $26,172,393 City's proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll 78.91% 83.13% 97.36% Plan fiduciary net position as a percentage of the total OPEB liability 54.05% 54.14% 46.33% Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2017 2018 2019 Ciry's proportion of the net OPEB liability(asset) 0.684675% 0.711449% 0.708997% City's proportionate share of the net OPEB liability (asset) $32,499,962 $40,309,693 $6,456,505 Ciry's coveredpayroll $14,718,583 $15,525,792 $16,127,372 City's proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll 220.81% 259.63% 40.03% Plan fiduciary net position as a percentage of the total OPEB liability 15.96% 14.13% 46.57% Source: Finance Director's Office and the Ohio Police and Fire Pension Fund Notes: The Ciry implemented GASB Statement 75 in 2018. The schedule is intended to show ten years of information. Additional years will be displayed as they become available. Information prior to 2017 is not available. The schedule is reported as of the measurement date of the Net OPEB Liability. See accompanying notes to the required supplementary information - 136 - CITY OF HAMILTON, OHIO Schedule of City's Proportionate ShaNe of the Net Other Postemployment Benefits (OPEB) Liability (Asset) - Cost Sharing Plans Last Six Years Ohio Public Employees Retirement System Year 2020 2021 2022 City's proportion of the net OPEB liability (asset) 0.195755% 0.197091% 0.201271% City's proportionate share of the net OPEB liability (asset) $27,038,853 ($3,511,330) ($6,304,112) City's covered payroll $27,177,157 $27,451,886 $27,629,593 City's proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll 99.49% (12.79%) (22.82%) Plan fiduciary net position as a percentage of the total OPEB liability 47.80% ll5.57% 128.23% Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2020 2021 2022 City's proportion of the net OPEB liabiliry(asset) 0.700746% 0.713153% 0.739344% City's proportionate share of the net OPEB liability (asset) $6,921,777 $7,555,970 $8,103,849 City's covered payroll $16,769,908 $17,643,755 $18,147,094 City's proportionate share of the net OPEB liability (asset) as a percentage of its covered payroll 41.27% 42.83% 44.66% Plan fiduciary net position as a percentage of the total OPEB liabiliry 47.08% 45.42% 46.86% Source: Finance Director's Office and the Ohio Police and Fire Pension Fund - 137 - CITY OF HAMILTON, OHIO Schedule of City's Other Postemployment Benefit(OPEB) Contributions-Cost Sharing Plans Last Ten YeaNs Ohio Public Employees Retirement System Year 2013 2014 2015 Contractually required contribution $241,197 $481,520 $457,267 Contributions in relation to the contractually required contribution 241,197 481,520 457,267 Contribution deficiency (excess) $0 $0 $0 City's covered payroll $24,119,685 $24,075,983 $22,863,367 Contributions as a percentage of 1.00% 2.00% 2.00% covered payroll Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2013 2014 2015 Contractually required contribution $536,138 $72,855 $72,044 Contributions in relation to the contractually required contribution 536,138 72,855 72,044 Contribution deficiency (excess) $0 $0 $0 City's covered payroll $14,795,978 $14,571,091 $14,408,748 Contributions as a percentage of 3.62% 0.50% 0.50% covered payroll Source: Finance Director's Office and the Ohio Police and Fire Pension Fund - 138 - CITY OF HAMILTON, OHIO Schedule of City's Other Postemployment Benefit(OPEB) Contributions-Cost Sharing Plans Last Ten YeaNs Ohio Public Employees Retirement System Year 2016 2017 2018 Contractually required contribution $471,583 $256,597 $0 Contributions in relation to the contractually required contribution 471,583 256,597 0 Contribution deficiency (excess) $0 $0 $0 City's covered payroll $23,579,133 $25,659,746 $26,172,393 Contributions as a percentage of 2.00% 1.00% 0.00% covered payroll Source: Finance Director's Office and the Ohio Public Employees Retirement System Ohio Police and Fire Pension Fund Year 2016 2017 2018 Contractually required contribution $73,593 $77,629 $80,637 Contributions in relation to the contractually required contribution 73,593 77,629 80,637 Contribution deficiency (excess) $0 $0 $0 City's covered payroll $14,718,583 $15,525,792 $16,127,372 Contributions as a percentage of 0.50% 0.50% 0.50% covered payroll Source: Finance Director's Office and the Ohio Police and Fire Pension Fund - 139 - CITY OF HAMILTON, OHIO Schedule of City's Other Postemployment Benefit(OPEB) Contributions-Cost Sharing Plans Last Ten YeaNs Ohio Public Employees Retirement System Year 2019 2020 2021 2022 Contractually required contribution $0 $0 $0 $0 Contributions in relarion to the contractually required contribution 0 0 0 0 Contribution deficiency(excess) $0 $0 $0 $0 City's covered payroll $27,177,157 $27,451,886 $27,629,593 $28,677,679 Contributions as a percentage of 0.00% 0.00% 0.00% 0.00% covered payroll Source: Finance Director's Office and the Ohio Public Employees Rerirement System Ohio Police and Fire Pension Fund Year 2019 2020 2021 2022 Contractually required contribution $83,850 $88,219 $90,735 $99,435 Contributions in relation to the contractually required contribution 83,850 88,219 90,735 99,435 Contriburion deficiency(excess) $0 $0 $0 $0 City's covered payroll $16,769,908 $17,643,755 $18,147,094 $19,887,089 Contributions as a percentage of 0.50% 0.50% 0.50% 0.50% covered payroll Source: Finance Director's Office and the Ohio Police and Fire Pension Fund Notes: The City implemented GASB Statement 75 in 2018. The schedule is intended to show ten years of information. Additional years will be displayed as they become available. Information priar to 2013 is not available. See accompanying notes to the required supplementary information - 140 - CITY OF HAMILTON, OHIO Schedule of City's Other Postemployment Benefits (OPEB) Liability— Single Employer Plan Last Six Years Retiree Life Insurance Plan Year 2017 2018 2019 Total OPEB liability $1,386,170 $1,327,255 $1,502,960 City's covered-employee payroll 38,297,716 41,185,538 42,299,765 Total OPEB liability as a percentage of its covered-employee payroll 3.62°/o 3.22% 3.55°/o Source: Finance Director's Office - 141 - CITY OF HAMILTON, OHIO Schedule of City's Other Postemployment Benefits (OPEB) Liability— Single Employer Plan Last Six Years Retiree Life Insurance Plan Year 2020 2021 2022 Total OPEB liability $1,631,540 $1,681,865 $1,252,755 City's covered-employee payroll 43,947,065 45,095,640 45,776,687 Total OPEB liability as a percentage of its covered-employee payroll 3.71% 3.73% 2.74°/o Source: Finance Director's Office Notes: The Retiree Life Insurance Plan has no assets. The City implemented GASB Statement 75 in 2018. The schedule is intended to show ten years of information. Additional years will be displayed as they become available. Information prior to 2017 is not available. The schedule is reported as of the measurement date of the Total OPEB Liability. See accompanying notes to the required supplementary information - 142 - CITY OF HAMILTON, OHIO Schedule of Changes in the City's Total Other Postemployment Benefit(OPEB)Liability- Single Employer Plan Last Five Years Retiree Life Insurance Plan Year 2018 2019 2020 2021 2022 TotaIOPEBLiabiliryBeginningofYear $1,386,170 $1,327,255 $1,502,960 $1,631,540 $1,681,865 Service cost 15,498 14,686 18,382 22,442 24,053 Interest 47,062 48,811 40,140 31,740 29,468 Difference between expected and actual experience 19,734 31,916 21,914 39,058 (8,500) Changes ofassumptions (57,311) 166,583 135,366 46,567 (384,251) Benefitpayments (83,898) (86,291) (87,222) (89,482) (89,880) TotaIOPEBLiabiliryEndofYear $1,327,255 $1,502,960 $1,631,540 $1,681,865 $1,252,755 Source:Finance Director's Office Notes:The City implemented GASB Statement 75 in 2018. The schedule is intended to show ten years of information.Additional years will be displayed as they become available.Information prior to 2018 is not available. See accompanying notes to the required supplementary information - 143 - CITY OF HAMILTON, OHIO Notes to the Required Supplementary Information For the Year Ended December 31, 2022 NET PENSION LIABILITY—COST SHARING PLANS OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM(OPERS) Changes in benefit terms: There were no changes in benefit terms for the period 2014-2022. Changes in assumptions: 2014-2016: There were no changes in methods and assumptions used in the calculation of actuarial determined contributions. 2017: The following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: -Reduction in actuarial assumed rate of return from 8.00%to 7.50% -Decrease in wage inflation from 3.75%to 3.25% -Change in future salary increases from a range of 4.25°/o-10.02%to 3.25%-10.75% - Amounts reported beginning in 2017 use mortality rates based on the RP-2014 Healthy Annuitant mortality table. 2018: There were no changes in methods and assumptions used in the calculation of actuarial determined contributions. 2019: The following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: -Reduction in actuarial assumed rate of return from 7.50%to 7.20% 2020: The following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: -Change in COLA from 3.00°/o to 1.4°/o for post 1/7/13 retirees. 202L• The following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: -Change in COLA from 1.4%to 0.5% for post 1/7/13 retirees. 2022: The following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: -Change in COLA from 0.5%to 3.00% for post 1/7/13 retirees. -Reduction in actuarial assumed rate of return from 7.20%to 6.90%. - Pre-retirement mortality rates are based on Pub-2010 General Employee/Safety Employee mortality tables. - Post-retirement mortality rates are based on PubG-2010 Retiree mortality tables. - Post-retirement mortality rates for disabled retirees are based on PubNS-2010 Disabled Retiree mortality tables for all divisions. - 144 - CITY OF HAMILTON, OHIO Notes to the Required Supplementary Information For the Year Ended December 31, 2022 NET PENSION LIABILITY—COST SHARING PLANS(Continued) OHIO POLICE AND FIRE (OP&F)PENSION FUND Changes in benefit terms: There were no changes in benefit terms for the period 2014-2022. Changes in assumptions: 2014-2017: There were no changes in methods and assumptions used in the calculation of actuarial determined contributions. 2018: The following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: -Reduction in actuarial assumed rate of return from 8.25°/o to 8.00% -Decrease salary increases from 3.75%to 3.25% - Change in payroll growth from 3.75°/o to 3.25°/o -Reduce DROP interest rate from 4.5%to 4.0% -Reduce CPI-based COLA from 2.6%to 2.2% -Inflation component reduced from 3.25%to 2.75% - For the January 1, 2017, valuation, mortality for non-disabled participants is based on the RP-2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006 - For the January l, 2017, valuation, mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006 2019-2021: There were no changes in methods and assumptions used in the calculation of actuarial determined contributions. 2022: The following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: -Reduction in actuarial assumed rate of return from 8.00°/o to 7.50% This Space Intentionally Left Blank - 145 - CITY OF HAMILTON, OHIO Notes to the Required Supplementary Information For the Year Ended December 31, 2022 NET OPEB LIABILITY(ASSET)- COST SHARING PLANS OffiO PUBLIC EMPLOYEES RETIREMENT SYSTEM(OPERS) Changes in benefit terms: There were no changes in benefit terms for the periods 2018-2021. 2022: Group plans for non-Medicare retirees and re-employed retirees replaced with individual medical plans. OPERS will provide a subsidy or allowance via an HRA. Changes in assumptions: For 2018,the single discount rate changed from 4.23%to 3.85%. 2019: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -The single discount rate changed from 3.85%to 3.96%. -Reduction in actuarial assumed rate of return from 6.50%to 6.00% -Change in health care cost trend rate from 7.5%to 10% -The Municipal Bond Rate changed from 3.31%to 3.71% 2020: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -The single discount rate changed from 3.96%to 3.16%. -Change in health care cost trend rate from 10.0%to 10.5°/o -The Municipal Bond Rate changed from 3.71°/o to 2.75°/o 202L• The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -The single discount rate changed from 3.16%to 6.00%. -Change in health care cost trend rate from 10.5%to 8.5°/o -The Municipal Bond Rate changed from 2.75°/o to 2.00°/o 2022: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -Change in health care cost trend rate from 8.5%to 5.5% -The Municipal Bond Rate changed from 2.00°/o to 1.84°/o - Pre-retirement mortality rates are based on Pub-2010 General Employee/Safety Employee mortality tables. - Post-retirement mortality rates are based on PubG-2010 Retiree mortality tables. - Post-retirement mortality rates for disabled retirees are based on PubNS-2010 Disabled Retiree mortality tables for all divisions. - 146 - CITY OF HAMILTON, OHIO Notes to the Required Supplementary Information For the Year Ended December 31, 2022 NET OPEB LIABILITY(ASSET)- COST SHARING PLANS (Continued) OHIO POLICE AND FIRE (OP&F)PENSION FUND Changes in benefit terms: 2018: There were no changes in benefit terms. 2019: The retiree health care model and the current self-insured health care plan were replaced with a stipend-based health care model. 2020 -2022: There were no changes in benefit terms. Changes in assumptions: 2018: The single discount rate changed from 3.79%to 3.24%. 2019: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -The single discount rate changed from 3.24%to 4.66%. 2020: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -The single discount rate changed from 4.66%to 3.56%. 2021: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -The single discount rate changed from 3.56%to 2.96°/o. -The payroll growth rate changed from 2.75%to 3.25%. 2022: The following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date: -The single discount rate changed from 2.96%to 2.84°/o. - 147 - CITY OF HAMILTON, OHIO Notes to the Required Supplementary Information For the Year Ended December 31, 2022 TOTAL OPEB LIABILITY—SINGLE EMPLOYER PLAN RETIREE LIFE INSURANCE PLAN Changes in benefit terms: There were no changes in benefit terms for the periods 2018-2022. Changes in assumptions: 2018: The single discount rate changed from 3.50% to 3.80%. The mortality table for non-disabled participants was changed to the RP-2014 Total Mortality Table and the mortality table for disabled participants was changed to the RP-2014 disabled Mortality Table. In addition, termination rates were updated. 2019: The single discount rate changed from 3.80% to 2.75%. The mortality table for non-disabled participants was changed to the Pri-2012 Total Mortality Table and the mortality table for disabled participants was changed to the Pri-2012 disabled retiree Mortality Table. 2020: The single discount rate changed from 2.75% to 2.00%. The mortality table for non-disabled participants was changed to the Pub-2010 General/Public Safety Mortality Table and the mortality table for disabled participants was changed to the Pub-2010 General Disabled Retiree Mortality Table. 2021: The single discount rate changed from 2.00%to 1.80%. 2022: The single discount rate changed from 1.80%to 4.00%. - 148 - CITY OF HAMILTON, OHIO COMBINING AND INDIVIDUAL FUND �.7 TATEMENTS AND ,iJ CHEDULES THE FOLLOWING COMBINING STATEMENTS AND SCHEDULES INCLUDE THE MAJOR AND NONMAJOR GOVERNMENTAL FUNDS, INTERNAL SERVICE FUNDS AND FID UCIARY FUNDS. - 149 - CITY OF HAMILTON, OHIO Special Revenue Funds Special Revenue Funds are used to account for the proceeds of speci�c revenue sources (other than amounts relating to trusts, debt service, or major capital projects) that are legally restricted or committed to expenditures for specified purposes. One Renaissance Center Fund To account for revenues and expenditures related to the City-owned office tower known as One Renaissance Center. (The Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances are not presented because this fund is reported as part of the General Fund on a GAAP basis.) Unclaimed Monies Fund To account for the receipt of monies unable to be returned or distributed. The City will hold the receipts for the statutory period and then the monies will be disbursed to the State of Ohio.(The Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances are not presented because this fund is reported as part of the General Fund on a GAAP basis.) Convention and Visitor's Bureau Fund To account for the HoteUMotel tax levied on guests of the City where 50% of such tax monies are distributed to the Convention and Visitor's Bureau and 50% is distributed to the City. Central Business Special Improvement District Fund To account for the receiving and disbursing of special assessments levied upon real property within the Hamilton Central Business Special Improvement District.(This fund is not part of the City's appropriated budget,therefore no budgetary schedule is presented.) Fire Insurance Deposit Escrow Fund To account for deposits and reimbursements held for fire damage as prescribed by Ohio Revised Code.(This fund is not part of the City's appropriated budget, therefore no budgetary schedule is presented.) Municipal Court Improvement Fund To account for an extra five dollar fee charged by the municipal court on all cases. The money received from this fee is restricted for computerization projects within the municipal court. Public Safety/Health Income Tax Fund To account for revenue from 0.25% of the City's income tax restricted to expenditures for health and public safety. OneOhio Opioid Settlement Fund To account for monies obtained and distributed by the State of Ohio for opioid settlements from drug manufacturers and distributors. It is designated for resources to assist with community drug recovery,prevention and treatment. (Continued) - 150 - CITY OF HAMILTON, OHIO Special Revenue Funds (Continued) Dispute Resolution Proceeds Fund To account for the collection of certain fees imposed by Municipal Court. These are restricted to dispute resolution. Safety Services Fund To account for all monies restricted for public safety services including crime prevention, youth intervention, drug education and helmet and seatbelt safety. Police Pension Fund To accumulate property taxes levied for the partial payment of the current and accrued liability for police disability and pension. Police Levy Fund To account for monies from the one-mill levy to provide additional police personnel, motor vehicles and equipment of the police division. Firemen's Pension Fund To accumulate property taxes levied for the partial payment of the current and accrued liability for fire disability and pension. Fire EMS Levy Fund To account for monies from the one-mill levy to provide and maintain an additional front line paramedic unit with the fire division. Street Levy Fund To account for a 3.9 mill, 10 year property tax levy which is used to fund street improvements. Champions Mill Sports Complex TIF Fund To account for service payments in lieu of taxes levied by the City and remitted to the Hamilton Community Authority pursuant to a cooperative agreement Stormwater Management Fund To account for the planning, construction, operation and maintenance of storm water devices. Refuse Fund To account for revenues collected to help fund the refuse collection activity of the City. Revenue collected is committed to defray the cost of refuse collection. (Continued) - 151 - CITY OF HAMILTON, OHIO Special Revenue Funds (Continued) Street Maintenance Fund To account for state levied and controlled gasoline tax and motor vehicle license fees restricted for local street construction,maintenance and repair. Motor Vehicle License Tax Fund To account for county-levied motor vehicle registration fees designated for street construction, maintenance and repairs. (The Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances are not presented because this fund is reported as part of the Street Maintenance Fund on a GAAP basis.) Land Reutilization Fund To account for State grants from the Moving Ohio Forward program to be used for demolition of vacant, abandoned and blighted properties in the City. Home Program Fund To account for federal grants restricted for improvement of the community's housing stock. Parking Fund To account for revenues and expenditures associated with the operation of City-owned parking facilities. Golf Course Fund To account for revenues and expenditures associated with the operation of two City- owned golf courses. Community Development Block Grant Fund To account for federal grants restricted for community and environmental improvements. Debt Service Fund The Debt Service Funds are used to account for retirement of the County's general obligation bonds, special assessment bonds and loans other than those financed by proprietary funds. Debt Service Fund To account for the accumulation of resources for the payments of general obligation debt of the City including self-supporting obligations not otherwise paid from proprietary funds. (Continued) - 152 - CITY OF HAMILTON, OHIO Capital Projects Funds The Capital Projects Funds are used to account for the financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by proprietary or trust funds. Special Assessment Fund To account for revenues and expenditures associated with the levy of special assessments on citizen's property. Municipal Improvement Tax Increment Equivalent (MITIE) Fund To account for monies deposited as service payments in lieu of taxes distributed by the County Treasurer for improvements exempt from taxation and far their related costs. To account for the deposit of any income tax revenue that has been dedicated to finance the aforementioned improvements. Fire Station Construction Fund To account for transfers from the General Fund to be used for the construction costs of building Fire Station 26 on a 2.5 acre site on South Erie Boulevard. Governmental Building Sale Proceeds Fund To account for proceeds from the sale of the Hamilton Government Building. A portion of the proceeds were used for infrastructure improvements, and a portion was loaned to developers of the Spooky Nook project. Issue II Projects Fund To account for road and bridge construction projects, partially funded by state grants from the Ohio Public Works Commission, pursuant to Auditor of State specifications. (The Balance Sheet is not presented because there are no assets or liabilities at year end.) Infrastructure Program Fund To account for the purpose of improving the City's infrastructure with proceeds from the issuance of gasoline tax revenue general obligation bonds and transfers from other funds. Peamanent Fund The Permanent Fund is used to account for the financial resources that are legally restricted in that only the earnings,not the principal, may be used to support the City's programs. Benninghofen Trust Fund To account for the investment revenues received and uses of the monies from a charitable bequest made to the City for use with the poor by the Benninghofen Family. The bequest cannot be used for any purpose other than generating investment income. - 153 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022 Nonmajor Nonmajor Nonmajor Total Nonmajor Special Capital Projects Permanent Governmental Revenue Funds Funds Fund Funds Assets: Equity in Pooled Cash and Investments $ 21,674,258 $ 7,925,ll7 $ 75,325 $ 29,674,700 Receivables: Ta:ces 9,674,721 1,703,188 0 ll,377,909 Accounts 1,177,256 0 0 1,177,256 Intergovernmental 2,251,610 0 0 2,251,610 Interest 19,474 0 0 19,474 Special Assessments 39,594 385,277 0 424,871 Loans 60,678 3,500,000 0 3,560,678 Leases 60,574 0 0 60,574 Inventory of Supplies,at Cost 24,593 0 0 24,593 Prepaid Items 46,521 0 0 46,521 Total Assets $ 35,029,279 $ 13,513,582 $ 75,325 $ 48,618,186 Liabilities: Accounts Payable $ 1,200,201 $ 223,710 $ 0 $ 1,423,911 Accrued Wages and Benefits Payable 187,655 0 0 187,655 IntergovernmentalPayable 91,495 0 0 91,495 Accrued Liabilities 16,746 0 0 16,746 CustomerDeposits 4,270 0 0 4,270 InterfundPayable 0 2,119,256 0 2,119,256 Due to Hamilton Community Authority 2,091,540 0 0 2,091,540 Accrued Interest Payable 822 500 0 1,322 General Obligation Notes Payable 3,700,000 2,250,000 0 5,950,000 Total Liabilities 7,292,729 4,593,466 0 ll,886,195 Deferred Inflows of Resources: UnavailableAmounts 2,885,933 600,264 0 3,486,197 Property Tax Levy far Ne�t Fiscal Year 5,766,438 1,488,201 0 7,254,639 Leases 60,574 0 0 60,574 Total Deferred Inflows of Resources 8,712,945 2,088,465 0 10,801,410 Fund Balance: Nonspendable 71,114 0 75,000 146,114 Restricted 15,175,335 538,900 325 15,714,560 Committed 3,777,156 0 0 3,777,156 Assigned 0 8,293,185 0 8,293,185 Unassigned 0 (2,000,434) 0 (2,000,434) Total Fund Balance 19,023,605 6,831,651 75,325 25,930,581 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 35,029,279 $ 13,513,582 $ 75,325 $ 48,618,186 - 154 - CITY OF HAMILTON, OHIO ..-;;:•�,i ,,,='_..� ,:- �,�.'''"� ,:_ ,��;= 1 '� ;; � .. � � •- � •� . I' ��s`f _ �55 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022 Nonmajor Nonmajor Special Nonmajor Debt Capital Projects Revenue Funds Service Fund Funds Revenues: Income Taxes $ 4,525,188 $ 0 $ 0 Property and Other Local Taxes 6,960,109 0 1,488,200 Intergovernmental Revenues 6,868,540 0 4,881,594 Charges for Services 8,862,226 0 0 Licenses and Permits 687,469 0 0 Investment Earnings (538,444) 0 (218,233) Special Assessments 178,332 0 340,644 Fines and Forfeitures 269,321 0 0 All Other Revenue 623,876 0 6,610 Total Revenues 28,436,617 0 6,498,815 Espenditures: Current: General Government 214,247 0 0 Security of Persons and Property 3,814,055 0 0 L,eisure Time Activities 190,142 0 0 Community Environment 4,233,884 0 0 Basic Utility Services 9,002,412 0 0 Transportation 7,258,075 0 0 Capital Outlay 0 0 11,665,577 Debt Service: Principal Retirement 323,682 2,178,469 0 Interest and Fiscal Charges 180,397 1,566,522 500 Total Expenditures 25,216,894 3,744,991 11,666,077 Excess(Deficiency)of Revenues Over(Under)E�enditures 3,219,723 (3,744,991) (5,167,262) Other Financing Sources(Uses): Sale of Capital Assets 14,510 0 0 OWDA L,oans Issued 564,711 0 0 Installment I,oan Issuance 150,561 0 0 Transfers In 2,720,499 2,828,689 8,652,475 Transfers Out (775,841) 0 (1,051,485) Total Other Financing Sources(Uses) 2,674,440 2,828,689 7,600,990 Net Change in Fund Balance 5,894,163 (916,302) 2,433,728 Fund Balance at Beginning of Year 13,175,381 916,302 4,397,923 Decrease in Inventory (45,939) 0 0 Fund Balance End of Year $ 19,023,605 $ 0 $ 6,831,651 - 156 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022 Nonmajor Total Nonmajor Permanent Governmental Fund Funds Revenues: IncomeTaxes $ 0 $ 4,525,188 Property and Other Local Taxes 0 8,448,309 Intergovernmental Revenues 0 11,750,134 Charges for Services 0 8,862,226 Licenses and Permits 0 687,469 Investment Earnings 706 (755,971) Special Assessments 0 518,976 Fines and Forfeitures 0 269,321 All Other Revenue 0 630,486 Total Revenues 706 34,936,138 Expenditures: Current: General Government 381 214,628 Security of Persons and Property 0 3,814,055 Leisure Time Activities 0 190,142 Community Environment 0 4,233,884 Basic Utility Services 0 9,002,412 Transportation 0 7,258,075 Capital Outlay 0 11,665,577 Debt Service: PrincipalRetirement 0 2,502,151 Interest and Fiscal Charges 0 1,747,419 Total Expenditures 381 40,628,343 Excess(Deficiency)of Revenues Over(Under)Elpenditures 325 (5,692,205) Other Financing Sources(Uses): Sale of Capital Assets 0 14,510 OWDA Loans Issued 0 564,711 Installment Loan Issuance 0 150,561 Transfers In 0 14,201,663 Transfers Out 0 (1,827,326) Total Other Financing Sources(Uses) 0 13,104,119 Net Change in Fund Balance 325 7,411,914 Fund Balance at Beginning of Year 75,000 18,564,606 Decrease in Inventory 0 (45,939) Fund Balance End of Year $ 75,325 $ 25,930,581 - 157 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2022 Central Business Special Fire Insurance Municipal Convention and Improvement Deposit Court Visitor's Bureau District Escrow Improvement Assets: Equity in Pooled Cash and Investments $ 31,250 $ 0 $ 195,832 $ 407,386 Receivables: Taxes 0 0 0 0 Accounts 0 0 0 0 Intergovernmental 0 0 0 0 Interest 0 0 0 0 Special Assessments 0 39,594 0 0 Loans 0 0 0 0 Leases 0 0 0 0 Inventory of Supplies,at Cost 0 0 0 0 Prep aid Items 0 0 0 0 Total Assets $ 31,250 $ 39,594 $ 195,832 $ 407,386 Liabilities: Accounts Payable $ 31,250 $ 0 $ 0 $ 5,650 Accrued Wages and Benefits Payable 0 0 0 0 IntergovernmentalPayable 0 39,594 0 0 Accrued Liabilities 0 0 0 0 Customer D ep osits 0 0 0 0 Due to Hamilton Community Authority 0 0 0 0 Accrued Interest Payable 0 0 0 0 General Obligation Notes Payable 0 0 0 0 Total Liabilities 31,250 39,594 0 5,650 Deferred Inflows of Resources: Unavailable Amounts 0 0 0 0 Property Tax Levy for Ne�t Fiscal Year 0 0 0 0 Leases 0 0 0 0 Total Deferred Inflows of Resources 0 0 0 0 Fund Balance: Nonsp endable 0 0 0 0 Restricted 0 0 195,832 401,736 Committed 0 0 0 0 Total Fund Balance 0 0 195,832 401,736 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 31,250 $ 39,594 $ 195,832 $ 407,386 - 158 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2022 Public One Ohio Dispute Safety/Health Opioid Resolution Income Tax Settlement Proceeds Safety Services Assets: Equity in Pooled Cash and Investments $ 2,452,453 $ 56,849 $ 45,438 $ 2,943,818 Receivables: Taxes 983,715 0 0 951,597 Accounts 0 0 0 0 Intergovernmental 0 0 0 53,311 Interest 0 0 0 0 Special Assessments 0 0 0 0 Loans 0 0 0 0 Leases 0 0 0 0 Inventory of Supplies,at Cost 0 0 0 0 Prep aid Items 0 0 0 0 Total Assets $ 3,436,168 $ 56,849 $ 45,438 $ 3,948,726 Liabilities: Accounts Payable $ 0 $ 0 $ 0 $ 2,473 Accrued Wages and Benefits Payable 0 0 0 13,547 IntergovernmentalPayable 0 0 47 3,032 Accrued Liabilities 16,746 0 0 0 Customer D ep osits 0 0 0 0 Due to Hamilton Community Authority 0 0 0 0 Accrued Interest Payable 0 0 0 0 General Obligation Notes Payable 0 0 0 0 Total Liabilities 16,746 0 47 19,052 Deferred Inflows of Resources: Unavailable Amounts 471,041 0 0 173,428 Property Tax Levy for Ne�t Fiscal Year 0 0 0 831,480 Leases 0 0 0 0 Total DeferredInflows ofResources 471,041 0 0 1,004,908 Fund Balance: Nonsp endable 0 0 0 0 Restricted 2,948,381 56,849 45,391 2,924,766 Committed 0 0 0 0 Total Fund Balance 2,948,381 56,849 45,391 2,924,766 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 3,436,168 $ 56,849 $ 45,438 $ 3,948,726 (Continued) - 159 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2022 Firemen's Police Pension Police Levy Pension Fire EM S Levy Assets: Equity in Pooled Cash and Investments $ 666,397 $ 1,739,038 $ 640,517 $ 1,739,039 Receivables: Taxes 285,479 762,461 285,479 762,461 Accounts 0 0 0 0 Intergovernmental 15,993 41,178 15,993 41,178 Interest 0 0 0 0 Special Assessments 0 0 0 0 Loans 0 0 0 0 Leases 0 0 0 0 Inventory of Supplies,at Cost 0 0 0 0 Prep aid Items 0 0 0 0 Total Assets $ 967,869 $ 2,542,677 $ 941,989 $ 2,542,678 Liabilities: Accounts Payable $ 0 $ 0 $ 0 $ 0 Accrued Wages and Benefits Payable 0 0 0 0 Intergovernmental Pay able 0 0 0 0 Accrued Liabilities 0 0 0 0 Customer D ep osits 0 0 0 0 Due to Hamilton Community Authority 0 0 0 0 Accrued Interest Payable 0 0 0 0 General Obligation Notes Payable 0 0 0 0 Total Liabilities 0 0 0 0 Deferred Inflows of Resources: Unavailable Amounts 52,028 137,421 52,028 137,421 Property Tax Levy for Ne�t Fiscal Year 249,444 666,218 249,444 666,218 Leases 0 0 0 0 Total DeferredInflows ofResources 301,472 803,639 301,472 803,639 Fund Balance: Nonsp endable 0 0 0 0 Restricted 666,397 1,739,038 640,517 1,739,039 Committed 0 0 0 0 Total Fund Balance 666,397 1,739,038 640,517 1,739,039 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 967,869 $ 2,542,677 $ 941,989 $ 2,542,678 - 160 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2022 Champions Mill Sparts Stormwater StreetLevy ComplexTIF Management Refuse Assets: Equity in Pooled Cash and Investments $ 1,999,001 $ 0 $ 5,828,954 $ 1,231,003 Receivables: Taxes 3,551,989 2,091,540 0 0 Accounts 0 0 369,439 703,159 Intergovernmental 52,308 0 0 0 Interest 0 0 16,196 0 Special Assessments 0 0 0 0 Loans 0 0 0 0 Leases 0 0 0 0 Inventory of Supplies,at Cost 0 0 0 0 Prepaid Items 0 0 0 10,585 Total Assets $ 5,603,298 $ 2,091,540 $ 6,214,589 $ 1,944,747 Liabilities: Accounts Payable $ 6,665 $ 0 $ 384,719 $ 310,697 Accrued Wages and Benefits Payable 0 0 40,435 36,457 Intergovernmental Pay able 0 0 11,497 11,412 Accrued Liabilities 0 0 0 0 Customer D ep osits 0 0 0 0 Due to Hamilton Community Authority 0 2,091,540 0 0 Accrued Interest Payable 0 0 822 0 General Obligation Notes Payable 0 0 3,700,000 0 Total Liabilities 6,665 2,091,540 4,137,473 358,566 Deferred Inflows of Resources: Unavailable Amounts 500,663 0 0 0 Property TaxLevy forNe�tFiscalYear 3,103,634 0 0 0 Leases 0 0 0 0 Total DeferredInflows ofResources 3,604,297 0 0 0 Fund Balance: Nonsp endable 0 0 0 10,585 Restricted 1,992,336 0 0 0 Committed 0 0 2,077,116 1,575,596 Total FundBalance 1,992,336 0 2,077,116 1,586,181 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 5,603,298 $ 2,091,540 $ 6,214,589 $ 1,944,747 (Continued) - 161 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2022 Street Land Maintenance Reutilization HomeProgram Parking Assets: Equity in Pooled Cash and Investments $ 995,357 $ 28,110 $ 139,222 $ 194,393 Receivables: Taxes 0 0 0 0 Accounts 26,890 0 0 77,768 Intergovernmental 1,559,465 235,786 20,563 0 Interest 2,656 0 0 530 Special Assessments 0 0 0 0 Loans 0 0 7,771 0 Leases 0 0 0 0 Inventory of Supplies,at Cost 24,593 0 0 0 PrepaidItems 32,791 0 0 3,145 Total Assets $ 2,641,752 $ 263,896 $ 167,556 $ 275,836 Liabilities: Accounts Payable $ 138,208 $ 0 $ 20,562 $ 84,061 Accrued Wages and Benefits Payable 80,970 865 0 8,742 IntergovernmentalPayable 21,352 431 0 2,532 Accrued Liabilities 0 0 0 0 CustomerDeposits 0 0 0 4,270 Due to Hamilton Community Authority 0 0 0 0 Accrued Interest Payable 0 0 0 0 General Obligation Notes Payable 0 0 0 0 Total Liabilities 240,530 1,296 20,562 99,605 Deferred Inflows of Resources: Unavailable Amounts 987,671 235,786 7,771 77,768 Property Tax Levy for Ne�t Fiscal Year 0 0 0 0 Leases 0 0 0 0 Total DeferredInflows ofResources 987,671 235,786 7,771 77,768 Fund Balance: Nonspendable 57,384 0 0 3,145 Restricted 1,356,167 26,814 139,223 0 Committed 0 0 0 95,318 Total Fund Balance 1,413,551 26,814 139,223 98,463 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 2,641,752 $ 263,896 $ 167,556 $ 275,836 - 162 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2022 Community Total Nonmajar Development Special Golf Course Block Grant Revenue Funds Assets: Equity in Pooled Cash and Investments $ 36,870 $ 303,331 $ 21,674,258 Receivables: Taxes 0 0 9,674,721 Accounts 0 0 1,177,256 Intergovernmental 0 215,835 2,251,610 Interest 92 0 19,474 Special Assessments 0 0 39,594 Loans 0 52,907 60,678 Leases 60,574 0 60,574 Inventory of Supplies,at Cost 0 0 24,593 Prepaid Items 0 0 46,521 Total Assets $ 97,536 $ 572,073 $ 35,029,279 Liabilities: Accounts Payable $ 81 $ 215,835 $ 1,200,201 Accrued Wages and Benefits Payable 6,256 383 187,655 Intergovernmental Payable 1,499 99 91,495 Accrued Liabilities 0 0 16,746 CustomerDeposits 0 0 4,270 Due to Hamilton Community Authority 0 0 2,091,540 Accrued Interest Payable 0 0 822 General Obligation Notes Payable 0 0 3,700,000 Total Liabilities 7,836 216,317 7,292,729 Deferred Inflows of Resources: Unavailable Amounts 0 52,907 2,885,933 Property Tax Levy for Ne�t Fiscal Year 0 0 5,766,438 Leases 60,574 0 60,574 Total DeferredInflows ofResources 60,574 52,907 8,712,945 Fund Balance: Nonspendable 0 0 71,114 Restricted 0 302,849 15,175,335 Committed 29,126 0 3,777,156 Total FundBalance 29,126 302,849 19,023,605 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 97,536 $ 572,073 $ 35,029,279 - 163 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 Central Business Special Fire Insurance Municipal Convention and Improvement Deposit Court Visitor's Bureau District Escrow Improvement Revenues: Income Taxes $ 0 $ 0 $ 0 $ 0 Property and Other Local TaYes 82,743 0 0 0 Intergovernmental Revenues 0 0 0 0 Charges for Services 0 0 0 77,554 Licenses and Permits 0 0 0 0 Investment Earnings 0 0 0 (10,354) Special Assessments 0 178,332 0 0 Fines and Forfeitures 0 0 0 59,455 All Other Revenue 0 0 98,000 0 Total Revenues 82,743 178,332 98,000 126,655 Expenclitures: Current: General Government 93,750 0 116,008 0 Security of Persons and Property 0 0 0 143,705 Leisure Time Activities 0 0 0 0 Community Environment 0 178,332 0 0 Basic Utility Services 0 0 0 0 Transp ortation 0 0 0 0 Debt Service: Principal Retirement 0 0 0 0 Interest and Fiscal Charges 0 0 0 0 Total Expenditures 93,750 178,332 116,008 143,705 Excess(Deficiency)of Revenues Over(Under)Eapenditures (11,007) 0 (18,008) (17,050) Other Ftinancing Sources(Uses): Sale of Capital Assets 0 0 0 0 OWDA Loans Issued 0 0 0 0 Installment Loan Issuance 0 0 0 0 Transfers In 0 0 0 0 Transfers Out 0 0 0 0 Total Other Financing Sources(Uses) 0 0 0 0 Net Change in Fund Balance (11,007) 0 (18,008) (17,050) Fund Balance at Beginning of Year 11,007 0 213,840 418,786 Decrease in Inventory 0 0 0 0 Fund Balance End of Year $ 0 $ 0 $ 195,832 $ 401,736 - 164 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 Public One Ohio Dispute Safety/Health Opioid Resolution Income Tax Settlement Proceeds Safety Services Revenues: Income Taxes $ 4,525,188 $ 0 $ 0 $ 0 Property and Other Local TaYes 0 0 0 831,505 Intergovernmental Revenues 0 58,459 0 120,706 Charges for Services 0 0 7,923 17,167 Licenses and Permits 0 0 0 0 Investment Earnings (66,331) (1,610) (1,176) (78,290) Special Assessments 0 0 0 0 Fines and Forfeitures 0 0 0 209,866 All Other Revenue 0 0 0 52,075 Total Revenues 4,458,857 56,849 6,747 1,153,029 Expenclitures: Current: General Government 0 0 4,489 0 Security of Persons and Property 3,289,000 0 0 381,350 Leisure Time Activities 0 0 0 0 Community Environment 0 0 0 0 Basic Utility Services 0 0 0 0 Transp ortation 0 0 0 0 Debt Service: Principal Retirement 0 0 0 0 Interest and Fiscal Charges 0 0 0 0 Total Expenditures 3,289,000 0 4,489 381,350 Excess(Deficiency)of Revenues Over(Under)Eapenditures 1,169,857 56,849 2,258 771,679 Other Ftinancing Sources(Uses): Sale of Capital Assets 0 0 0 13,505 OWDA Loans Issued 0 0 0 0 Installment Loan Issuance 0 0 0 0 Transfers In 0 0 0 45,000 Transfers Out 0 0 0 0 Total Other Financing Sources(Uses) 0 0 0 58,505 Net Change in Fund Balance 1,169,857 56,849 2,258 830,184 FundBalanceatBeginningofYear 1,778,524 0 43,133 2,094,582 Decrease in Inventory 0 0 0 0 Fund Balance End of Year $ 2,948,381 $ 56,849 $ 45,391 $ 2,924,766 (Continued) - 165 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 Firemen's Police Pension Police Levy Pension Fire EM S Levy Revenues: Income Taxes $ 0 $ 0 $ 0 $ 0 Property and Other Local TaYes 249,451 666,239 249,451 666,239 Intergovernmental Revenues 32,047 82,512 32,047 82,512 Charges for Services 0 0 0 0 Licenses and Permits 0 0 0 0 Investment Earnings (18,016) (47,045) (17,340) (47,046) Special Assessments 0 0 0 0 Fines and Forfeitures 0 0 0 0 All Other Revenue 0 0 0 0 Total Revenues 263,482 701,706 264,158 701,705 Expenclitures: Current: General Government 0 0 0 0 Security of Persons and Property 0 0 0 0 Leisure Time Activities 0 0 0 0 Community Environment 0 0 0 0 Basic Utility Services 0 0 0 0 Transp ortation 0 0 0 0 Debt Service: Principal Retirement 0 0 0 0 Interest and Fiscal Charges 0 0 0 0 Total Expenditures 0 0 0 0 Excess(Deficiency)of Revenues Over(Under)Eapenditures 263,482 701,706 264,158 701,705 Other Ftinancing Sources(Uses): Sale of Capital Assets 0 0 0 0 OWDA Loans Issued 0 0 0 0 Installment Loan Issuance 0 0 0 0 Transfers In 0 0 0 0 Transfers Out 0 0 0 0 Total Other Financing Sources(Uses) 0 0 0 0 Net Change in Fund Balance 263,482 701,706 264,158 701,705 FundBalanceatBeginningofYear 402,915 1,037,332 376,359 1,037,334 Decrease in Inventory 0 0 0 0 Fund Balance End of Year $ 666,397 $ 1,739,038 $ 640,517 $ 1,739,039 - 166 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 Champ ions Mill S`ports Stortnwater Street I,evy ComplexTIF Management Refuse Revenues: Income Taxes $ 0 $ 0 $ 0 $ 0 Property and Other Local TaYes 3,103,718 1,110,763 0 0 Intergovernmental Revenues 102,697 0 0 0 Charges for Services 0 0 2,996,901 5,132,261 Licenses and Permits 0 0 0 0 Investment Earnings (51,614) 0 (137,278) (32,132) Special Assessments 0 0 0 0 Fines and Forfeitures 0 0 0 0 All Other Revenue 0 0 57,995 69,698 Total Revenues 3,154,801 1,110,763 2,917,618 5,169,827 Expenclitures: Current: General Government 0 0 0 0 Security of Persons and Property 0 0 0 0 Leisure Time Activities 0 0 0 0 Community Environment 0 1,110,763 0 0 Basic Utility Services 0 0 4,053,697 4,948,715 Transp ortation 3,238,820 0 0 0 Debt Service: Principal Retirement 0 0 188,920 0 Interest and Fiscal Charges 0 0 114,660 0 Total Expenditures 3,238,820 1,110,763 4,357,277 4,948,715 Excess(Deficiency)of Revenues Over(Under)Eapenditures (84,019) 0 (1,439,659) 221,112 Other Ftinancing Sources(Uses): Sale of Capital Assets 0 0 0 0 OWDA Loans Issued 0 0 564,711 0 Installment Loan Issuance 0 0 150,561 0 Transfers In 0 0 2,200,000 0 Transfers Out 0 0 0 0 Total Other Financing Sources(Uses) 0 0 2,915,272 0 Net Change in Fund Balance (84,019) 0 1,475,613 221,112 FundBalanceatBeginningofYear 2,076,355 0 601,503 1,365,069 Decrease in Inventory 0 0 0 0 Fund Balance End of Year $ 1,992,336 $ 0 $ 2,077,ll6 $ 1,586,181 (Continued) - 167 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 Street Land Maintenance Reutilization HomeProgram Parking Revenues: Income Taxes $ 0 $ 0 $ 0 $ 0 Property and Other Local TaYes 0 0 0 0 Intergovernmental Revenues 3,413,037 0 766,054 0 Charges for Services 344,765 0 0 267,252 Licenses and Permits 687,469 0 0 0 Investment Earnings (13,043) (744) (3,767) (4,170) Special Assessments 0 0 0 0 Fines and Forfeitures 0 0 0 0 All Other Revenue 24,061 0 46,ll0 12,690 Total Revenues 4,456,289 (744) 808,397 275,772 Expenclitures: Current: General Government 0 0 0 0 Security of Persons and Property 0 0 0 0 Leisure Time Activities 0 0 0 0 Community Environment 0 42,944 752,187 0 Basic Utility Services 0 0 0 0 Transportation 3,624,613 0 0 394,642 Debt Service: Principal Retirement 0 0 0 126,233 Interest and Fiscal Charges 0 0 0 61,600 Total Expenditures 3,624,613 42,944 752,187 582,475 Excess(Deficiency)of Revenues Over(Under)Eapenditures 831,676 (43,688) 56,210 (306,703) Other Ftinancing Sources(Uses): Sale of Capital Assets 0 1,005 0 0 OWDA Loans Issued 0 0 0 0 Installment Loan Issuance 0 0 0 0 Transfers In 0 50,000 0 387,833 Transfers Out (775,841) 0 0 0 Total Other Financing Sources(Uses) (775,841) 51,005 0 387,833 Net Change in Fund Balance 55,835 7,317 56,210 81,130 Fund Balance at Beginning of Year 1,403,655 19,497 83,013 17,333 Decrease in Inventory (45,939) 0 0 0 Fund Balance End of Year $ 1,413,551 $ 26,814 $ 139,223 $ 98,463 - 168 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 Community Total Nonmajar Development Special Golf Course Block Grant Revenue Funds Revenues: IncomeTaxes $ 0 $ 0 $ 4,525,188 Property and Other Local TaYes 0 0 6,960,109 Intergovernmental Revenues 0 2,178,469 6,868,540 Charges for Services 18,403 0 8,862,226 Licenses and Permits 0 0 687,469 Investment Earnings (799) (7,689) (538,444) Special Assessments 0 0 178,332 Fines and Forfeitures 0 0 269,321 All Other Revenue 176,658 86,589 623,876 Total Revenues 194,262 2,257,369 28,436,617 Expenclitures: Current: General Government 0 0 214,247 Security of Persons and Property 0 0 3,814,055 Leisure Time Activities 190,142 0 190,142 Community Environment 0 2,149,658 4,233,884 Basic Utility Services 0 0 9,002,412 Transportation 0 0 7,258,075 Debt Service: Principal Retirement 8,529 0 323,682 Interest and Fiscal Charges 4,137 0 180,397 Total Expenditures 202,808 2,149,658 25,216,894 Excess(Deficiency)of Revenues Over(Under)Expenditwes (8,546) 107,711 3,219,723 Other Financing Sources(Uses): Sale of Capital Assets 0 0 14,510 OWDA Loans Issued 0 0 564,711 Installment Loan Issuance 0 0 150,561 Transfers In 37,666 0 2,720,499 Transfers Out 0 0 (775,841) Total Other Financing Sources(Uses) 37,666 0 2,674,440 Net Change in Fund Balance 29,120 107,711 5,894,163 Fund Balance at Beginning of Year 6 195,138 13,175,381 Decrease in Inventory 0 0 (45,939) Fund Balance End of Year $ 29,126 $ 302,849 $ 19,023,605 - 169 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Capital Projects Funds December 31, 2022 Special Fire Station Assessment MITIE Construction Assets: Equity in Pooled Cash and Investments $ 159,534 $ 532,790 $ 3,855,748 Receivables: TaYes 0 1,703,188 0 Special Assessments 385,277 0 0 Loans 0 0 0 Total Assets $ 544,8ll $ 2,235,978 $ 3,855,748 Liabilities: Accounts Payable $ 40,712 $ 0 $ 15,800 Interfund Payable 2,119,256 0 0 Accrued Interest Payable 0 0 0 General Obligation Notes Payable 0 0 0 Total I�abilities 2,159,968 0 15,800 Deferred Inflows of Resources: Unavailable Amounts 385,277 214,987 0 Property Tax L,evy for Neart Fiscal Year 0 1,488,201 0 Total Deferred Inflows of Resources 385,277 1,703,188 0 Fund Balance: Restricted 0 532,790 0 Assigned 0 0 3,839,948 Unassigned (2,000,434) 0 0 Total Fund Balance (2,000,434) 532,790 3,839,948 Total I�abilities,Deferred Inflows of Resources and Fund Balance $ 544,8ll $ 2,235,978 $ 3,855,748 - 170 - CITY OF HAMILTON, OHIO Combining Balance Sheet Nonmajor Capital Projects Funds December 31, 2022 Governmental Total Nonmajor Building Sale Infrastructure Capital Projects Proceeds Program Funds Assets: Equity in Pooled Cash and Investments $ 9,447 $ 3,367,598 $ 7,925,117 Receivables: Taxes 0 0 1,703,188 Special Assessments 0 0 385,277 Loans 3,500,000 0 3,500,000 Total Assets $ 3,509,447 $ 3,367,598 $ 13,513,582 Liabilities: Accounts Payable $ 0 $ 167,198 $ 223,710 Interfund Payable 0 0 2,119,256 Accrued Interest Payable 0 500 500 General Obligation Notes Payable 0 2,250,000 2,250,000 Total Liabilities 0 2,417,698 4,593,466 Deferred Inflows of Resources: Unavailable Amounts 0 0 600,264 Property Tax Levy for Next Fiscal Year 0 0 1,488,201 Total Deferred Inflows of Resources 0 0 2,088,465 Fund Balance: Restricted 0 6,ll0 538,900 Assigned 3,509,447 943,790 8,293,185 Unassigned 0 0 (2,000,434) Total Fund Balance 3,509,447 949,900 6,831,651 Total Liabilities,Deferred Inflows of Resources and Fund Balance $ 3,509,447 $ 3,367,598 $ 13,513,582 - 171 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 Governmental S`pecial Fire Station Building Sale Assessment MITIE Construction Proceeds Revenues: Prop erty and Other Local TaYes $ 0 $ 1,488,200 $ 0 $ 0 Intergovernmental Revenues 0 0 0 0 Investment Earnings (3,132) (14,144) (109,175) (121) Special Assessments 340,644 0 0 0 All Other Revenue 0 0 0 0 Total Revenues 337,512 1,474,056 (109,175) (121) Expenditures: CapitalOutlay 802,264 942,357 50,877 37,493 Debt Service: Interest and Fiscal Charges 0 0 0 0 Total Elcpenditures 802,264 942,357 50,877 37,493 Excess(Deficiency)of Revenues Over(Under)E�penditures (464,752) 531,699 (160,052) (37,614) Other Financing Sources(Uses): Transfers In 0 150,000 4,000,000 0 Transfers Out (227,393) (594,284) 0 0 Total Other Financing Sources(Uses) (227,393) (444,284) 4,000,000 0 Net Change in Fund Balance (692,145) 87,415 3,839,948 (37,614) Fund Balance at Beginning of Year (1,308,289) 445,375 0 3,547,061 Fund Balance End of Year $ (2,000,434) $ 532,790 $ 3,839,948 $ 3,509,447 - 172 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 Total Nonmajor Issue II Infrastructure Capital Project Projects Progam Funds Revenues: Property and Other Local Taxes $ 0 $ 0 $ 1,488,200 Intergovernmental Revenues 1,867,689 3,013,905 4,881,594 Investment Earnings 0 (91,661) (218,233) Special Assessments 0 0 340,644 All Other Revenue 0 6,610 6,610 Total Revenues 1,867,689 2,928,854 6,498,815 Expenditures: CapitalOutlay 1,867,689 7,964,897 11,665,577 Debt Service: Interest and Fiscal Charges 0 500 500 Total F.�cpenditures 1,867,689 7,965,397 11,666,077 Excess(Deficiency)of Revenues Over(Under)Expenditures 0 (5,036,543) (5,167,262) Other Financing Sources(Uses): Transfers In 0 4,502,475 8,652,475 Transfers Out 0 (229,808) (1,051,485) Total Other Financing Sources(Uses) 0 4,272,667 7,600,990 Net Change in Fund Balance 0 (763,876) 2,433,728 Fund Balance at Beginning of Year 0 1,713,776 4,397,923 Fund Balance End of Year $ 0 $ 949,900 $ 6,831,651 - 173 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Major Fund- General Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Income Taxes $ 23,157,500 $ 26,677,284 $ 26,897,229 $ 219,945 Property and Other Local Taxes 5,725,000 5,725,000 5,876,346 151,346 Intergovernmental Revenues 2,737,400 2,838,822 3,746,913 908,091 Charges for Services 17,207,207 17,207,207 14,353,546 (2,853,661) Licenses and Permits 1,062,570 1,062,570 1,275,839 213,269 Investment Eamings 202,500 202,500 606,845 404,345 Fines and Forfeitures 421,318 421,318 388,862 (32,456) All Other Revenue 326,525 326,525 337,866 11,341 Total Revenues 50,840,020 54,461,226 53,483,446 (977,780) Expenclitures: Security of Persons and Property: Municipal Court: Personal Services 1,736,030 1,736,030 1,574,654 161,376 Other Expenditures 272,276 266,135 267,787 (1,652) Total Municipal Court 2,008,306 2,002,165 1,842,441 159,724 Police: Personal Services 16,333,550 2,890,750 2,495,647 395,103 Other Expenditures 1,396,726 1,825,364 1,534,447 290,917 TotalPolice 17,730,276 4,716,114 4,030,094 686,020 Fire: Personal Services 13,296,377 2,269,260 1,444,095 825,165 OtherExpenditures 1,586,085 1,615,781 1,514,972 100,809 Total Fire 14,882,462 3,885,041 2,959,067 925,974 Total Security ofPersons andProperty 34,621,044 10,603,320 8,831,602 1,771,718 Public Health and Welfare Services: Health: Personal Services 742,549 818,094 797,637 20,457 Other Expenditures 596,174 420,710 247,255 173,455 Total Public Health and Welfare Services 1,338,723 1,238,804 1,044,892 193,912 (Continued) - 174 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Major Fund- General Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Community Environment: Department of Planning: Personal Services 1,056,299 1,176,068 1,045,912 130,156 Other Etpenditures 187,590 202,897 159,572 43,325 Total Department of Planning 1,243,889 1,378,965 1,205,484 173,481 CDBG: OtherEapenditures 53,000 50,000 16,877 33,123 Tota1CDBG 53,000 50,000 16,877 33,123 Total Community Environment 1,296,889 1,428,965 1,222,361 206,604 Basic Utility Services: Public Works: Personal Services 1,257,876 1,270,372 1,231,765 38,607 OtherExpenditures 260,901 307,043 277,184 29,859 Total Basic Utility Services 1,518,777 1,577,415 1,508,949 68,466 General Government: City Council: Personal Services 96,895 96,895 75,128 21,767 Other Eapenditures 6,857 10,611 9,663 948 Total City Council 103,752 107,506 84,791 22,715 City Clerk: Personal Services 81,493 81,608 81,143 465 Other Expenditures 17,902 18,329 19,112 (783) Total City Clerk 99,395 99,937 100,255 (318) City M anager: Personal Services 525,395 530,511 543,054 (12,543) Other Expenditures 12,894 21,273 22,883 (1,610) Total City Manager 538,289 551,784 565,937 (14,153) Neighborhoods: Personal Services 432,695 525,700 521,011 4,689 Other Etpenditures 137,129 141,123 136,443 4,680 Total Neighborhoods 569,824 666,823 657,454 9,369 Department of Law: Personal Services 610,136 610,136 536,413 73,723 Other Expenditures 400,416 662,725 683,459 (20,734) Total Department of Law 1,010,552 1,272,861 1,219,872 52,989 (Continued) - 175 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Major Fund- General Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Department of Civil Service: Personal Services 561,439 561,439 511,351 50,088 Other Etpenditures 11,510 11,456 10,717 739 Total Department of Civil Service 572,949 572,895 522,068 50,827 Finance: Personal Services 1,597,407 1,596,523 1,413,055 183,468 Other Expenditures 932,502 1,356,430 1,104,251 252,179 Total Finance 2,529,909 2,952,953 2,517,306 435,647 Special Appropriations-General: Personal Services 180,186 81,664 62,375 19,289 Other Expenditures 6,245,707 12,434,080 12,022,606 411,474 Total Special Appropriations-General 6,425,893 12,515,744 12,084,981 430,763 Sp ecial App rop riations: Personal Services 90,203 90,813 74,836 15,977 Other Expenditures 2,020,065 2,694,606 2,714,999 (20,393) Total Special Appropriations 2,110,268 2,785,419 2,789,835 (4,416) Total General Government 13,960,831 21,525,922 20,542,499 983,423 TotalE�penditures 52,736,264 36,374,426 33,150,303 3,224,123 Excess(Deficiency)of Revenues Over(Under)E�penditures (1,896,244) 18,086,800 20,333,143 2,246,343 Other Financing Sources(Uses): Sale of Capital Assets 0 0 4,902 4,902 Transfers Out (1,010,452) (23,282,025) (21,543,789) 1,738,236 Total Other Financing Sources(Uses) (1,010,452) (23,282,025) (21,538,887) 1,743,138 Net Change in Fund Balance (2,906,696) (5,195,225) (1,205,744) 3,989,481 Fund Balance at Beginning of Year 8,293,254 8,293,254 8,293,254 0 Priar Year Encumbrances 2,906,696 2,906,696 2,906,696 0 Fund Balance at End of Year $ 8,293,254 $ 6,004,725 $ 9,994,206 $ 3,989,481 - 176 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Major Fund—Special Revenue Fund—Health Department Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Investment Earnings $ 70 $ 70 $ 134 $ 64 All Other Revenue 1,425 1,425 1,537 112 Total Revenues 1,495 1,495 1,671 176 Expenditures: Public Health and Welfare Services: Other E�enditures 500 500 270 230 Total E�enditures 500 500 270 230 Net Change in Fund Balance 995 995 1,401 406 Fund Balance at Beginning of Year 12,761 12,761 12,761 0 Fund Balance at End of Year $ 13,756 $ 13,756 $ 14,162 $ 406 - 177 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Major Fund—Special Revenue Fund— Coronavirus State and Local Fiscal Recovery (SLFRF) Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental Revenues $ 0 $ 16,795,100 $ 16,795,100 $ 0 Total Revenues 0 16,795,100 16,795,100 0 Expenclitures: Secwity ofPersons andProperty: Personal Services 0 25,090,200 25,090,200 0 Other E�penditures 8,295,100 0 0 0 Total Eapenditures 8,295,100 25,090,200 25,090,200 0 Net Change in Fund Balance (8,295,100) (8,295,100) (8,295,100) 0 Fund Balance at Beginning of Year 8,295,100 8,295,100 8,295,100 0 Fund Balance at End of Year $ 0 $ 0 $ 0 $ 0 - 178 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Major Fund—Capital Projects Fund—Hamilton Capital Improvement Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Income Taxes $ 2,985,000 $ 2,985,000 $ 3,470,595 $ 485,595 Intergovernmental Revenues 3,986,000 7,491,221 5,708,1 ll (1,783,ll0) All Other Revenue 20,000 1,246,555 63,046 (1,183,509) Total Revenues 6,991,000 ll,722,776 9,241,752 (2,481,024) Expenditures: Cap ital Outlay 6,817,119 13,446,492 11,185,951 2,260,541 Debt Service: Interest and Fiscal Charges 0 0 12,460 (12,460) Total Expenditures 6,817,119 13,446,492 11,198,4ll 2,248,081 Excess(Deficiency)of Revenues Over(Under)E�penditures 173,881 (1,723,716) (1,956,659) (232,943) Other Financing Sources(Uses): Sale of Capital Assets 27,000 27,000 218 (26,782) Note Issuance 0 0 2,500,000 2,500,000 Debt Issuance Premium 0 0 19,816 19,816 Transfers In 90,452 2,907,364 2,799,503 (107,861) Transfers Out (1,849,224) (2,799,224) (2,694,531) 104,693 Total Other Financing Sources(Uses) (1,731,772) 135,140 2,625,006 2,489,866 Net Change in Fund Balance (1,557,891) (1,588,576) 668,347 2,256,923 Fund Balance at Beginning of Year 278,814 278,814 278,814 0 PriorYearEncumbrances 4,276,119 4,276,119 4,276,119 0 Fund Balance at End of Year $ 2,997,042 $ 2,966,357 $ 5,223,280 $ 2,256,923 - 179 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Major Fund—Capital Projects Fund— Criminal Justice Center Construction Fund For the Year Ended December 31, 2022 Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Investment Eaming,s $ 0 $ 0 $ 41,428 $ 41,428 Total Revenues 0 0 41,428 41,428 Expenditures: CapitalOutlay 0 33,000,000 185,571 32,814,429 Debt Service: Interest and Fiscal Charges 0 0 114,530 (114,530) Total Expenditures 0 33,000,000 300,101 32,699,899 Excess(Deficiency)of Revenues Over(Under)E�:penditures 0 (33,000,000) (258,673) 32,741,327 Other Financing Sources(Uses): General Obligation Notes Issued 0 23,000,000 23,182,141 182,141 Transfers In 0 10,000,000 8,069,480 (1,930,520) Total Other Financing Sources(Uses) 0 33,000,000 31,251,621 (1,748,379) Net Change in Fund Balance 0 0 30,992,948 30,992,948 Fund Balance at Beginning of Year 0 0 0 0 Fund Balance at End of Year $ 0 $ 0 $ 30,992,948 $ 30,992,948 - 180 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 ONE RENAIS S ANCE CENTER FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Charges for Services $ 2,522,268 $ 2,522,268 $ 2,326,064 $ (196,204) Total Revenues 2,522,268 2,522,268 2,326,064 (196,204) Expenditures: General Government: Other Expenditures 2,254,200 3,729,879 3,327,620 402,259 Total Expenditures 2,254,200 3,729,879 3,327,620 402,259 Excess(Deficiency)of Revenues Over(Under)E�:penditures 268,068 (1,207,611) (1,001,556) 206,055 Other Financing Sources(Uses): Transfers In 0 500,000 0 (500,000) Total Other Financing Sources(Uses) 0 500,000 0 (500,000) Net Change in Fund Balance 268,068 (707,611) (1,001,556) (293,945) Fund Balance at Beginning of Year 1,027,002 1,027,002 1,027,002 0 Prior Year Encumbrances 139,284 139,284 139,284 0 Fund Balance at End of Year $ 1,434,354 $ 458,675 $ 164,730 $ (293,945) - 181 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 UNCLAIMED MONIES FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: All Other Revenue $ 5,000 $ 5,000 $ 1,272 $ (3,728) Total Revenues 5,000 5,000 1,272 (3,728) Expenditures: General Government: Other E�enditures 20,000 20,000 9,857 10,143 Total Expenditures 20,000 20,000 9,857 10,143 Net Change in Fund Balance (15,000) (15,000) (8,585) 6,415 Fund Balance at Beginning of Year 44,894 44,894 44,894 0 Fund Balance at End of Year $ 29,894 $ 29,894 $ 36,309 $ 6,415 - 182 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 CONVINTION AND VISITOR'S BLIREAUFUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Property and Other Local Taxes $ 100,000 $ 125,000 $ 82,743 $ (42,257) TotalRevenues 100,000 125,000 82,743 (42,257) Expenditures: General Government: Other E�penditures 131,250 156,250 125,000 31,250 Total Eapenditures 131,250 156,250 125,000 31,250 Net Change in Fund Balance (31,250) (31,250) (42,257) (11,007) Fund Balance at Beginning of Year 11,007 11,007 11,007 0 Priar Year Encumbrances 31,250 31,250 31,250 0 Fund Balance at End of Year $ ll,007 $ 11,007 $ 0 $ (11,007) - 183 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 MUNICIPAL COURT IMPROVEMENT FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Charges for Services $ 82,406 $ 82,406 $ 77,554 $ (4,852) Fines and Forfeitures 68,915 68,915 58,935 (9,980) Total Revenues 151,321 151,321 136,489 (14,832) Expenditures: Security ofPersons andProperty: Other Expenditures 154,402 151,820 150,870 950 TotalEapenditures 154,402 151,820 150,870 950 Net Change in Fund Balance (3,081) (499) (14,381) (13,882) Fund Balance at Beginningof Year 405,140 405,140 405,140 0 Priar Year Encumbrances 9,152 9,152 9,152 0 Fund Balance at End of Year $ 411,211 $ 413,793 $ 399,911 $ (13,882) - 184 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 PUBLIC SAFETY/HEALTH INCOME TAX FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Income Taxes $ 3,739,500 $ 3,739,500 $ 4,338,245 $ 598,745 Total Revenues 3,739,500 3,739,500 4,338,245 598,745 Expenclitures: Security ofPersons andProperty: Other E�penditures 3,739,500 3,739,500 3,289,000 450,500 Total E�penditures 3,739,500 3,739,500 3,289,000 450,500 Net Change in Fund Balance 0 0 1,049,245 1,049,245 Fund Balance at Beginning of Year 1,472,649 1,472,649 1,472,649 0 Fund Balance at End of Year $ 1,472,649 $ 1,472,649 $ 2,521,894 $ 1,049,245 - 185 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 ONEOHIO OPIOID SETTLEMENT FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental Revenues $ 0 $ 100,000 $ 58,459 $ (41,541) Total Revenues 0 100,000 58,459 (41,541) Expenditures: Public Health and Welfare Services: Other Expenditures 0 100,000 0 100,000 Total Eapenditures 0 100,000 0 100,000 Net Change in Fund Balance 0 0 58,459 58,459 Fund Balance at Beginning of Year 0 0 0 0 Fund Balance at End of Year $ 0 $ 0 $ 58,459 $ 58,459 - 186 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 DISPUTERESOLUTION PROCEIDS FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Charges for Services $ 7,300 $ 7,300 $ 7,857 $ 557 Total Revenues 7,300 7,300 7,857 557 Expenclitures: General Government: Personal Services 5,022 5,022 4,491 531 Other Eapenditures 1,000 1,000 0 1,000 Total Expenditures 6,022 6,022 4,491 1,531 Net Change in Fund Balance 1,278 1,278 3,366 2,088 Fund Balance at Beginning of Year 42,621 42,621 42,621 0 Fund Balance at End of Year $ 43,899 $ 43,899 $ 45,987 $ 2,088 - 187 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 SAFETYSERVICES FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Property and Other Local Taxes $ 820,000 $ 820,000 $ 831,505 $ 11,505 Intergovernmental Revenues 120,329 136,379 120,706 (15,673) Charges for Services 22,755 22,755 17,167 (5,588) Fines and Farfeitures 225,200 225,200 211,532 (13,668) All Other Revenue 30,500 32,313 52,075 19,762 Total Revenues 1,218,784 1,236,647 1,232,985 (3,662) Expenditures: Security ofPersons andProperty: Personal Services 329,215 329,132 306,6ll 22,521 OtherEapenditures 963,546 962,783 77,246 885,537 Total Expenditures 1,292,761 1,291,915 383,857 908,058 Excess(Deficiency)of Revenues Over(Under)Eapenditures (73,977) (55,268) 849,128 904,396 Other Financing Sources(Uses): Sale of Capital Assets 10,000 10,000 13,505 3,505 Transfers In 80,000 80,000 45,000 (35,000) Total Other Financing Sources(Uses) 90,000 90,000 58,505 (31,495) Net Change in Fund Balance 16,023 34,732 907,633 872,901 Fund Balance at Beginning of Year 2,071,574 2,071,574 2,071,574 0 Priar Year Encumbrances 22,872 22,872 22,872 0 Fund Balance at End of Year $ 2,ll0,469 $ 2,129,178 $ 3,002,079 $ 872,901 - 188 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 POLICEPINSION FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Property and Other Local TaYes $ 240,000 $ 240,000 $ 249,451 $ 9,451 Intergovernmental Revenues 42,000 42,000 32,047 (9,953) Total Revenues 282,000 282,000 281,498 (502) Expenditures: Security of Persons and Property: Other E�enditures 295,000 295,000 0 295,000 Total Expenditures 295,000 295,000 0 295,000 Net Change in Fund Balance (13,000) (13,000) 281,498 294,498 Fund Balance at Beginning of Year 403,768 403,768 403,768 0 Fund Balance at End of Year $ 390,768 $ 390,768 $ 685,266 $ 294,498 - 189 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 POLICE LEVY FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Property and Other Local Taxes $ 650,000 $ 650,000 $ 666,239 $ 16,239 Intergovernmental Revenues 82,000 82,000 82,512 512 Total Revenues 732,000 732,000 748,751 16,751 Expenditures: Security of Persons and Property: Other Eapenditures 725,000 725,000 0 725,000 Total EYpenditures 725,000 725,000 0 725,000 Net Change in Fund Balance 7,000 7,000 748,751 741,751 Fund Balance at Beginning of Year 1,039,527 1,039,527 1,039,527 0 Fund Balance at End of Year $ 1,046,527 $ 1,046,527 $ 1,788,278 $ 741,751 - 190 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 FIIZEMEN'S PINSION FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Prop erty and Other Local Taxes $ 240,000 $ 240,000 $ 249,451 $ 9,451 Intergovernmental Revenues 32,000 32,000 32,047 47 Total Revenues 272,000 272,000 281,498 9,498 Espenditures: Security of Persons and Property: Other E�enditures 282,000 282,000 0 282,000 Total Expenditures 282,000 282,000 0 282,000 Net Change in Fund Balance (10,000) (10,000) 281,498 291,498 Fund Balance at Beginning of Year 377,155 377,155 377,155 0 Fund Balance at End of Year $ 367,155 $ 367,155 $ 658,653 $ 291,498 - 191 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 FIIZE EMS LEVY FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Property and Other Local Taxes $ 650,000 $ 650,000 $ 666,239 $ 16,239 Intergovernmental Revenues 85,000 85,000 82,512 (2,488) Total Revenues 735,000 735,000 748,751 13,751 Expenditures: Security of Persons and Property: Other Eapenditures 725,000 725,000 0 725,000 Total E�enditures 725,000 725,000 0 725,000 Net Change in Fund Balance 10,000 10,000 748,751 738,751 Fund Balance at Beginning of Year 1,039,529 1,039,529 1,039,529 0 Fund Balance at End of Year $ 1,049,529 $ 1,049,529 $ 1,788,280 $ 738,751 - 192 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 S TREET LEVY FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Property and Other L,ocal Taxes $ 3,100,000 $ 3,100,000 $ 3,103,718 $ 3,718 Intergovernmental Revenues 50,000 50,000 102,697 52,697 Total Revenues 3,150,000 3,150,000 3,206,415 56,415 Expenditures: Community Environment: OtherEapenditures 5,509,450 5,509,450 4,295,337 1,214,ll3 Total Expenditures 5,509,450 5,509,450 4,295,337 1,214,113 Net Change in Fund Balance (2,359,450) (2,359,450) (1,088,922) 1,270,528 Fund Balance at Beginning of Year 2,798 2,798 2,798 0 Prior Year Encumbrances 2,359,450 2,359,450 2,359,450 0 Fund Balance at End of Year $ 2,798 $ 2,798 $ 1,273,326 $ 1,270,528 - 193 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 CHAMPIONS MILL SPORTS COMPLEX TIF FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: PropertyandOtherLocalTaxes $ 0 $ 1,ll0,763 $ 1,110,763 $ 0 Total Revenues 0 1,ll0,763 1,110,763 0 Expenditures: General Government: Other E�p enditures 0 1,ll 0,763 1,110,763 0 Total Eapenditures 0 1,ll0,763 1,110,763 0 Net Change in Fund Balance 0 0 0 0 Fund Balance at Beginning of Year 0 0 0 0 Fund Balance at End of Year $ 0 $ 0 $ 0 $ 0 - 194 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 S TORMWATER MANAGEMENT FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Charges for Services $ 3,005,868 $ 3,005,868 $ 2,971,517 $ (34,351) Investment Earnings 20,000 20,000 10,687 (9,313) All Other Revenue 25,000 25,000 28,684 3,684 Total Revenues 3,050,868 3,050,868 3,010,888 (39,980) Espenditures: Basic Utility Services: Personal Services 932,020 981,639 918,849 62,790 Other E�enditures 4,586,148 5,484,307 3,341,495 2,142,812 Debt Service: Principal Retirement 169,088 169,088 128,990 40,098 Interest and Fiscal Charges 148,493 148,493 109,318 39,175 Total Expenditures 5,835,749 6,783,527 4,498,652 2,284,875 Excess(Deficiency)of Revenues Over(Under)E�enditures (2,7g4,881) (3,732,659) (1,487,764) 2,244,895 Other Financing Sources(Uses): OWDA Loan Proceeds 3,275,000 2,033,352 564,711 (1,468,641) Note Issuance 0 3,700,000 3,700,000 0 Premium on Debt Issuance 0 0 29,311 29,311 Transfers In 0 2,200,000 2,200,000 0 Total Other Financing Sowces(Uses) 3,275,000 7,933,352 6,494,022 (1,439,330) Net Change in Fund Balance 490,119 4,200,693 5,006,258 805,565 Fund Balance at Beginning of Year 145,598 145,598 145,598 0 Priar Year Encumbrances 182,013 182,013 182,013 0 Fund Balance at End of Year $ 817,730 $ 4,528,304 $ 5,333,869 $ 805,565 - 195 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 REFUS E FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Charges far Services $ 5,081,052 $ 5,081,052 $ 5,117,057 $ 36,005 All Other Revenue 74,000 74,000 69,698 (4,302) Total Revenues 5,155,052 5,155,052 5,186,755 31,703 Expenditures: Basic Utility Services: Personal Services 995,186 995,186 931,778 63,408 Other E�penditures 4,477,047 4,465,273 4,348,105 ll7,168 Total Eapenditures 5,472,233 5,460,459 5,279,883 180,576 Net Change in Fund Balance (317,181) (305,407) (93,128) 212,279 Fund Balance at Beginning of Year 700,529 700,529 700,529 0 Priar Year Encumbrances 305,154 305,154 305,154 0 Fund Balance at End of Year $ 688,502 $ 700,276 $ 912,555 $ 212,279 - 196 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 S TREET MAINTINANCE FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental Revenues $ 4,210,000 $ 4,210,000 $ 3,406,963 $ (803,037) Charges for Services 265,000 265,000 344,765 79,765 Licenses and Permits 390,000 390,000 412,481 22,481 Investment Earnings 3,000 3,000 9,543 6,543 All Other Revenue 11,000 11,000 22,683 11,683 Total Revenues 4,879,000 4,879,000 4,196,435 (682,565) Expenditures: Transpartation: Personal Services 1,868,388 1,865,541 1,671,419 194,122 Other Eapenditures 2,158,078 2,231,121 2,172,995 58,126 Total Expenditures 4,026,466 4,096,662 3,844,414 252,248 Excess(Deficiency)of Revenues Over(Under)Expenditures 852,534 782,338 352,021 (430,317) Other Financing Sources(Uses): Transfers Out (1,100,000) (1,100,000) (500,000) 600,000 TotalOtherFinancingSources(Uses) (1,100,000) (1,100,000) (500,000) 600,000 Net Change in Fund Balance (247,466) (317,662) (147,979) 169,683 Fund Balance at Beginning of Year 685,881 685,881 685,881 0 Prior Year Encumbrances 270,777 270,777 270,777 0 Fund Balance at End of Year $ 709,192 $ 638,996 $ 808,679 $ 169,683 - 197 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 MOTOR VEHICLE LICENSE TAX FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Licenses and Permits $ 300,000 $ 300,000 $ 274,988 $ (25,012) Investment Earnings 200 200 853 653 Total Revenues 300,200 300,200 275,841 (24,359) Expenclitures: Total Eapenditures 0 0 0 0 Excess(Deficiency)of Revenues Over(Under)E�penditures 300,200 300,200 275,841 (24,359) Other Financing Sources(Uses): Transfers Out (300,000) (300,000) (275,841) 24,159 TotalOtherFinancingSources(Uses) (300,000) (300,000) (275,841) 24,159 Net Change in Fund Balance 200 200 0 (200) Fund Balance at Beginning of Year 0 0 0 0 Fund Balance at End of Year $ 200 $ 200 $ 0 $ (200) - 198 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 LAND REUTILIZATION FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Total Revenues $ 0 $ 0 $ 0 $ 0 Expenditures: Community Environment: Personal Services 38,087 38,087 32,490 5,597 Other Eapenditures 32,800 32,800 18,171 14,629 Total Expenditures 70,887 70,887 50,661 20,226 Excess(Deficiency)of Revenues Over(Under)E�penditures (70,887) (70,887) (50,661) 20,226 Other Financing Sources(Uses): Sale of Capital Assets 18,000 18,000 1,005 (16,995) Transfers In 65,000 65,000 50,000 (15,000) Total Other Financing Sources(CTses) 83,000 83,000 51,005 (31,995) Net Change in Fund Balance 12,113 12,113 344 (11,769) Fund Balance at Beginning of Year 17,754 17,754 17,754 0 Prior Year Encumbrances 2,800 2,800 2,800 0 Fund Balance at End of Year $ 32,667 $ 32,667 $ 20,898 $ (11,769) - 199 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 HOME PROGRAM FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental Revenues $ 1,682,450 $ 1,973,278 $ 745,491 $ (1,227,787) All Other Revenue 264,120 438,264 46,110 (392,154) Total Revenues 1,946,570 2,411,542 791,601 (1,619,941) Espenditures: Community Environment: Personal Services 20,750 22,176 2,500 19,676 Other E�enditures 1,949,529 2,475,571 1,603,507 872,064 Total E�penditures 1,970,279 2,497,747 1,606,007 891,740 Net Change in Fund Balance (23,709) (86,205) (814,406) (728,201) Fund Balance at Beginning of Year (77,343) (77,343) (77,343) 0 Priar Year Encumbrances 160,660 160,660 160,660 0 Fund Balance at End of Year $ 59,608 $ (2,888) $ (731,089) $ (728,201) -200 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 PARKING FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Charges for Services $ 337,880 $ 337,880 $ 267,252 $ (70,628) Investment Earnings 1,000 1,000 624 (376) All Other Revenue 5,000 5,000 12,690 7,690 Total Revenues 343,880 343,880 280,566 (63,314) Expenditures: Transportation: Personal Services 212,873 212,873 164,711 48,162 Other E�enditures 361,956 358,560 301,793 56,767 Debt Service: Principal Retirement 126,233 126,233 126,233 0 Interest and Fiscal Charges 61,600 61,600 61,600 0 Total Expenditures 762,662 759,266 654,337 104,929 Excess(Deficiency)of Revenues Over(Under)E�enditures (418,782) (415,386) (373,771) 41,615 Other Financing Sources(Uses): Transfers In 387,833 387,833 387,833 0 Total Other Financing Sources(Uses) 387,833 387,833 387,833 0 Net Change in Fund Balance (30,949) (27,553) 14,062 41,615 Fund Balance at Beginning of Year 7,429 7,429 7,429 0 Prior Year Encumbrances 29,809 29,809 29,809 0 Fund Balance at End of Year $ 6,289 $ 9,685 $ 51,300 $ 41,615 -201 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 GOLF COURSE FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Charges for Services $ 17,457 $ 17,457 $ 18,403 $ 946 Investment Earnings 200 200 0 (200) All Other Revenue 270,000 270,000 176,658 (93,342) Total Revenues 287,657 287,657 195,061 (92,596) Expenditures: Leisure Time Activities: Personal Services 125,392 125,392 122,421 2,971 Other Eapenditures 125,880 125,880 67,844 58,036 Debt Service: PrincipalRetirement 8,486 8,486 8,529 (43) Interest andFiscal Charges 4,181 4,181 4,137 44 Total Expenditures 263,939 263,939 202,931 61,008 Excess(Deficiency)of Revenues Over(Under)E�penditures 23,718 23,718 (7,870) (31,588) Other Financing Sources(Uses): Transfers In 12,667 37,667 37,666 (1) Total Other Financing Sources(Uses) 12,667 37,667 37,666 (1) Net Change in Fund Balance 36,385 61,385 29,796 (31,589) Fund Balance at Beginning of Year 2,276 2,276 2,276 0 Fund Balance at End of Year $ 38,661 $ 63,661 $ 32,072 $ (31,589) -202 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2022 COMMUNTI'Y DEVELOPMENT BLOCK GRANT FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovemmental Revenues $ 4,502,326 $ 5,509,230 $ 2,198,662 $ (3,310,568) Investment Earnings 524 835 809 (26) All Other Revenue 580,326 692,382 86,589 (605,793) Total Revenues 5,083,176 6,202,447 2,286,060 (3,916,387) Expenclitures: Community Environment: Personal Services 132,048 134,514 7,539 126,975 Other E�enditures 4,583,720 5,839,919 3,023,857 2,816,062 Total Expenditures 4,715,768 5,974,433 3,031,396 2,943,037 Net Change in Fund Balance 367,408 228,014 (745,336) (973,350) Fund Balance at Beginning of Year (1,424,605) (1,424,605) (1,424,605) 0 Prior Year Encumbrances 1,465,088 1,465,088 1,465,088 0 Fund Balance at End of Year $ 407,891 $ 268,497 $ (704,853) $ (973,350) -203 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Debt Service Funds For the Year Ended December 31, 2022 DEBT S ERVICE FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Total Revenues $ 0 $ 0 $ 0 $ 0 Expenditures: Debt Service: Principal Retirement 1,539,561 2,489,561 2,362,553 127,008 Interest and Fiscal Charges 1,575,630 1,575,630 1,592,748 (17,118) TotalEapenditures 3,115,191 4,065,191 3,955,301 109,890 Excess(Deficiency)of Revenues Over(Under)E�enditures (3,115,191) (4,065,191) (3,955,301) 109,890 Other Financing Sources(Uses): Transfers In 2,198,889 3,148,889 3,038,999 (109,890) Total Other Financing Sources(Uses) 2,198,889 3,148,889 3,038,999 (109,890) Net Change in Fund Balance (916,302) (916,302) (916,302) 0 Fund Balance at Beginning of Year 916,302 916,302 916,302 0 Fund Balance at End of Year $ 0 $ 0 $ 0 $ 0 -204 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 S PECIAL AS S ES S MENT FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Special Assessments $ 392,000 $ 392,000 $ 340,644 $ (51,356) Total Revenues 392,000 392,000 340,644 (51,356) Expenditures: CapitalOutlay 1,026,460 985,580 982,081 3,499 Total Expenditures 1,026,460 985,580 982,081 3,499 Excess(Deficiency)of Revenues Over(Under)Eapenditures (634,460) (593,580) (641,437) (47,857) Other Financing Sources(Uses): Bond Issuance 1,412,372 1,412,372 0 (1,412,372) Transfers Out (437,799) (437,799) (437,703) 96 Advances In 400,000 400,000 1,795,836 1,395,836 Advances Out (1,366,573) (1,395,836) (1,395,836) 0 Total Other Financing Sources(Uses) 8,000 (21,263) (37,703) (16,440) Net Change in Fund Balance (626,460) (614,843) (679,140) (64,297) Fund Balance at Beginning of Year 29,340 29,340 29,340 0 Prior Year Encumbrances 626,460 626,460 626,460 0 Fund Balance at End of Year $ 29,340 $ 40,957 $ (23,340) $ (64,297) -205 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 MUNICIPAL IMPROVEMENT TAX INCREMENT EQUIVALENT FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Property and Other Local Taxes $ 1,375,000 $ 1,509,033 $ 1,488,200 $ (20,833) Total Revenues 1,375,000 1,509,033 1,488,200 (20,833) Expenditures: CapitalOutlay 854,150 942,743 942,357 386 TotalEapenditures 854,150 942,743 942,357 386 Excess(Deficiency)of Revenues Over(Under)Expenditures 520,850 566,290 545,843 (20,447) Other Financing Sources(Uses): Transfers In 0 I50,000 150,000 0 Transfers Out (590,557) (613,447) (594,284) 19,163 Total Other Financing Sources(C7ses) (590,557) (463,447) (444,284) 19,163 Net Change in Fund Balance (69,707) 102,843 101,559 (1,284) Fund Balance at Beginning of Year 446,318 446,318 446,318 0 Fund Balance at End of Year $ 376,611 $ 549,161 $ 547,877 $ (1,284) -206 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 FII2E STATION CONSTRUCTION FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Total Revenues $ 0 $ 0 $ 0 $ 0 Expenditures: CapitalOutlay 0 4,000,000 46,037 3,953,963 Total Expenditures 0 4,000,000 46,037 3,953,963 Excess(Deficiency)of Revenues Over(Under)E�enditures 0 (4,000,000) (46,037) 3,953,963 Other Financing S ources(Uses): Transfers In 0 4,000,000 4,000,000 0 Total Other Financing Sources(Uses) 0 4,000,000 4,000,000 0 Net Change in Fund Balance 0 0 3,953,963 3,953,963 Fund Balance at Beginning of Year 0 0 0 0 Fund Balance at End of Year $ 0 $ 0 $ 3,953,963 $ 3,953,963 -207 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 GOVERNMENTAL BLJILDING SALE PROCEEDS FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Total Revenues $ 0 $ 0 $ 0 $ 0 Expenclitures: CapitalOutlay 59,637 69,351 69,351 0 Total Expenditures 59,637 69,351 69,351 0 Net Change in Fund Balance (59,637) (69,351) (69,351) 0 Fund Balance at Beginning of Year 9,714 9,714 9,714 0 Prior Year Encumbrances 59,637 59,637 59,637 0 Fund Balance at End of Year $ 9,714 $ 0 $ 0 $ 0 -208 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 ISSUE II PROJECTS FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental Revenues $ 1,100,000 $ 3,481,910 $ 1,867,689 $ (1,614,221) Total Revenues 1,100,000 3,481,910 1,867,689 (1,614,221) Expenditures: CapitalOutlay 1,100,000 3,481,910 2,331,129 1,150,781 Total Expenditures 1,100,000 3,481,910 2,331,129 1,150,781 Net Change in Fund Balance 0 0 (463,440) (463,440) Fund Balance at Beginning of Year 0 0 0 0 Fund Balance at End of Year $ 0 $ 0 $ (463,440) $ (463,440) -209 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 INFRASTRUCTLJRE PROGRAM FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental Revenues $ 4,666,500 $ 5,967,551 $ 3,652,276 $ (2,315,275) All Other Revenue 1,445,300 0 0 0 Total Revenues 6,ll 1,800 5,967,551 3,652,276 (2,315,275) Expenditures: Cap ital Outlay 10,541,087 12,633,535 11,060,119 1,573,416 Total Expenditures 10,541,087 12,633,535 11,060,119 1,573,416 Excess(Deficiency)of Revenues Over(Under)E�penditwes (4,429,287) (6,665,984) (7,407,843) (741,859) Other Financing Sources(Uses): General Obligation Notes Issued 0 2,250,000 2,250,000 0 Premium on Debt Issuance 0 0 6,610 6,610 Transfers In 2,688,100 5,236,072 4,502,475 (733,597) Transfers Out (234,909) (234,909) (229,808) 5,101 Total Other Financing Sources(Uses) 2,453,191 7,251,163 6,529,277 (721,886) Net Change in Fund Balance (1,976,096) 585,179 (878,566) (1,463,745) Fund Balance at Beginning of Year (651,093) (651,093) (651,093) 0 Priar Year Encumbrances 2,399,682 2,399,682 2,399,682 0 Fund Balance at End of Year $ (227,507) $ 2,333,768 $ 870,023 $ (1,463,745) -210 - CITY OF HAMILTON, OHIO Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis) Nonmajor Permanent Fund For the Year Ended December 31, 2022 BENNINGHOFEN TRUST FUND Variance with Final Budget Original Positive Budget Final Budget Actual (Negative) Revenues: Investment Earnings $ 1,000 $ 1,000 $ 706 $ (294) Total Revenues 1,000 1,000 706 (294) Expenditures: General Government: Other E�penditures 1,000 1,000 485 515 TotalE�penditures 1,000 1,000 485 515 Net Change in Fund Balance 0 0 221 221 Fund Balance at Beginning of Year 75,104 75,104 75,104 0 Fund Balance at End of Year $ 75,104 $ 75,104 $ 75,325 $ 221 -211 - CITY OF HAMILTON, OHIO Internal Service Funds Internal Service Funds are used to account for financing goods or services provided by one activity to other activities of the City on a cost-reimbursement basis. Fleet Maintenance Fund To account for revenues and expenses associated with the maintenance of the City's motor transport equipment. Central Services Fund To account for revenues and expenses associated with interdepartmental charges for the costs of certain goods or services. -212 - CITY OF HAMILTON, OHIO Combining Statement of Net Position Internal Service Funds December 31, 2022 Fleet Maintenance Central Services Total Assets: Current Assets: Equity in Pooled Cash and Investments $ 36,253 $ 115,498 $ 151,751 Inventory of Supplies at Cost 42,400 0 42,400 Total Current Assets 78,653 115,498 194,151 Noncurrent Assets: Net OPEB Asset 159,766 711,331 871,097 Depreciable Capital Assets,Net 156,668 0 156,668 TotalNoncurrentAssets 316,434 711,331 1,027,765 Total Assets 395,087 826,829 1,221,916 Deferred Outflows of Resources: Pension 189,685 844,535 1,034,220 OPEB 1,171 4,994 6,165 Total Deferred Outflows of Resources 190,856 849,529 1,040,385 Liabilities: Current Liabilities: Accounts Payable 178,031 189,500 367,531 Accrued Wages and Benefits 57,161 199,238 256,399 Intergovernmental Payable 21,608 60,612 82,220 Compensated Absences Payable-Current 64,846 272,793 337,639 InterfundPayable 293,848 0 293,848 Total Current Liabilities 615,494 722,143 1,337,637 Noncurrent Liabilities: Compensated Absences Payable 69,973 151,537 221,510 Net Pension Liability 433,398 1,929,627 2,363,025 TotalNoncurrent Liabilities 503,371 2,081,164 2,584,535 Total Liabilities 1,ll8,865 2,803,307 3,922,172 Deferred Inflows of Resources: Pension 525,017 2,337,538 2,862,555 OPEB 165,072 734,950 900,022 Total Deferred Inflows of Resources 690,089 3,072,488 3,762,577 Net Position: Investment in Capital Assets 156,668 0 156,668 Unrestricted (1,379,679) (4,199,437) (5,579,116) Total Net Position $ (1,223,011) $ (4,199,437) $ (5,422,448) -213 - CITY OF HAMILTON, OHIO Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended December 31, 2022 F leet Maintenance Central Services Total Operating Revenues: Charges far Services $ 3,129,505 $ 9,ll8,113 $ 12,247,618 OtherOperatingRevenues 43,678 0 43,678 Total Operating Revenues 3,173,183 9,ll8,113 12,291,296 Operating Expenses: Personal Services 718,406 3,219,034 3,937,440 Contractual Services 445,176 3,782,474 4,227,650 MaterialsandSupplies 1,776,953 355,929 2,132,882 Dep reciation 18,314 0 18,314 OtherOperatingExpenses 26,746 229,378 256,124 Total Operating Expenses 2,985,595 7,586,815 10,572,410 OperatingIncome 187,588 1,531,298 1,718,886 Nonoperating Revenues(Expenses): Investment Earnings 0 (440) (440) Total Nonoperating Revenues(Expenses) 0 (440) (440) Change in Net Position 187,588 1,530,858 1,718,446 Net Position Beginningof Year (1,410,599) (5,730,295) (7,140,894) Net Position End of Year $ (1,223,011) $ (4,199,437) $ (5,422,448) -214 - CITY OF HAMILTON, OHIO Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2022 Fleet Central Maintenance Services Total Cash Flows fromOperating Activities: Cash Received fromC�stomers $3,173,183 $9,118,113 $12,291,296 Cash Payments for Goods and Services (2,270,70� (4,541,118) (6,811,824) Cash Payments for Employees (1,024,021) (4,549,440) (5,573,461) Net Cash Provided(Used)by Operating Activities (121,544) 27,555 (93,989) Cash Flows fromNoncapital Financin�Activities: Advances In from Other Funds 293,848 0 293,848 Advances Out to Other Funds (151,920) 0 (151,920) Net Cash Provided by Noncapital Financing Activities 141,928 0 141,928 Cash Flows fromInvestin�Activities: Change in the Fair Value of Investments 0 (440) (440) Net Cash Used by Investing Activities 0 (440) (440) Net Increase in Cash and Cash Equivalents 20,384 27,ll5 47,499 Cash and Cash Equivalents at Beginning ofYear 15,869 88,383 104,252 Cash and Cash Equivalents at End ofYear $36,253 $115,498 $151,751 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating Income $187,588 $1,531,298 $1,718,886 Adjustments to Reconcile Operating Income to Net Cash Provided(Used)by Operating Activities Depreciation Eapense 18,314 0 18,314 Changes in Assets,Liabilities,and Deferred Outflows/Inflows: Decrease in Inventory 11,257 0 11,257 Increase in Net OPEB Asset (65,781) (310,499) (376,280) Increase in Deferred Outflows ofResources (38,099) (198,044) (236,143) Decrease in Accounts Payable (32,941) (173,21� (206,158) Increase in Accrued Wages and Benefits 22,888 54,662 77,550 Increase in IntergovernmentalPayable 7,848 5,087 12,935 Increase in Compensated Absences 25,277 7,550 32,827 Decrease in Net Pension Liability (330,934) (1,330,139) (1,661,073) Increase in Deferred Inflows ofResources 73,039 440,857 513,896 TotalAdjustments (309,132) (1,503,743) (1,812,875) Net Cash Provided(Used)by Operating Activities ($121,544) $27,555 ($93,989) -215 - CITY OF HAMILTON, OHIO ,,,.�. ��,_._..;. �:= 'I �,�'"I� �: ;; 1 i ;; ,:- �:s .. III �'' •� � � � �l�sf _2�6 - CITY OF HAMILTON, OHIO Fiduciary Funds Fiduciary fund types are used to account for assets held by the City in a trustee capacity or as an agent for individuals,private organizations, other governmental units and/or other funds. Custodial Funds Rounding Up Utility Account Fund To account for voluntary contributions from citizens and/or organizations within the City to assist elderly, needy and disabled utility customers with utility charges incurred. Butler County Annexation Tax Fund To account for income taxes obtained from a special annexation of property contiguous to Hamilton. Joint Economic Development District(JEDD) Fund To account for the receipt and disbursement of income tax revenue pursuant to The Joint Economic Development District Agreement with Indian Springs/Fairfield Township. Municipal Court Fund To account for funds that flow through the Municipal Court office. Police Property Room Fund To account for the receipt of items remaining in the custody of the Police Department. The City will hold the items for a certain period of time at which they will be auctioned or disposed. Property Assessed Clean Energy Fund To account for special assessments collected and remitted to the Hamilton Community Authority. The assessments have been levied to fund energy improvements at the Champion Mill Spooky Nook Sports Complex site. The Hamilton Community Authority has issued debt to finance the energy improvements. The debt will be retired by the assessments collected from the project site owner. -217 - CITY OF HAMILTON, OHIO Combining Statement of Net Position Custodial Funds December 31, 2022 RoundingUp Butler County Utility Account Annexation Tax JEDD Assets: Equity in Pooled Cash and Investments $ 2,493 $ 44,669 $ 44,768 Receivables: Special Assessments 0 0 0 Total Assets 2,493 44,669 44,768 Liabilities: Intergovernmental Payable 0 44,669 44,768 Due to Others 2,493 0 0 Due to Hamilton Community Authority 0 0 0 TotalIaabilities 2,493 44,669 44,768 Net Position: Restricted For: Individuals and Other Governments 0 0 0 Total Net Position $ 0 $ 0 $ 0 -218 - CITY OF HAMILTON, OHIO Combining Statement of Net Position Custodial Funds December 31, 2022 Property Municipal PoliceProperty AssessedClean TotalCustodial Court Room Energy Funds Assets: Equity in Pooled Cash and Investments $ 111,902 $ 283,117 $ 0 $ 486,949 Receivables: Special Assessments 0 0 32,646,528 32,646,528 Total Assets 111,902 283,117 32,646,528 33,133,477 Liabilities: Intergovernmental Payable 111,902 0 0 201,339 Due to Others 0 0 0 2,493 Due to Hamilton Community Authority 0 0 32,646,528 32,646,528 TotalI�abilities 111,902 0 32,646,528 32,850,360 Net Position: Restricted For: Individuals and Other Governments 0 283,117 0 283,ll7 Total Net Position $ 0 $ 283,117 $ 0 $ 283,ll7 -219 - CITY OF HAMILTON, OHIO Combining Statement of Changes in Net Position Custodial Funds For the Year Ended December 31, 2022 RoundingUp ButlerCounty Utility Account Anne�tion Tax JEDD Adclitions: Fines and Forfeiture Collections for Other Governments $ 0 $ 0 $ 0 Contributions Received for Others 11,079 0 0 Tax Collections for Other Governments 0 223,375 1,204,684 Receipt of Seized Property Held for Others 0 0 0 Total Additions 11,079 223,375 1,204,684 Deductions: Distribution of Fines and Forfeitures to Other Governments 0 0 0 Distribution of Contributions Received for Others 11,079 0 0 Distribution of Taxes to Other Govemments 0 223,375 1,204,684 Distribution of Seized Property Held for Others 0 0 0 Total Deductions 11,079 223,375 1,204,684 Change in Net Position 0 0 0 Net Position at Beginning of Year 0 0 0 Net Position End of Year $ 0 $ 0 $ 0 -22� - CITY OF HAMILTON, OHIO Combining Statement of Changes in Net Position Custodial Funds For the Year Ended December 31, 2022 Prop erty Municipal Police Property Assessed Clean Total Custodial Court Room Energy Funds Additions: Fines and Forfeiture Collections for Other Governments $ 1,997,968 $ 0 $ 0 $ 1,997,968 Contributions Received for Others 0 0 0 11,079 TaY Collections for Other Governments 0 0 1,OSO,ll 8 2,478,177 Receipt of Seized Property Held for Others 0 20,359 0 20,359 Total Adclitions 1,997,968 20,359 1,O50,ll8 4,507,583 Deductions: Distribution of Fines and Farfeitures to Other Governments 1,997,968 0 0 1,997,968 Distribution of Contributions Received for Others 0 0 0 11,079 Distribution of Taxes to Other Governments 0 0 1,050,118 2,478,177 Distribution of Seized Property Held for Others 0 12,838 0 12,838 Total Deductions 1,997,968 12,838 1,050,118 4,500,062 Change in Net Position 0 7,521 0 7,521 Net Position at Beginning of Year 0 275,596 0 275,596 NetPositionEndofYear $ 0 $ 283,ll7 $ 0 $ 283,117 -221 - CITY OF HAMILTON, OHIO ,,,.==•� ,,,_----; i .:- ,,_- ,�= ,;: ;,, ;; � . ;: „,:- � , :: �,.. � � � •� � • � �ls�f -222 - STATISTICAL SECTION � �F �� G /� <v �' � O � � � * � O � � �' O �F � � COZ�� CITY OF HAMILTON, OHIO 1,,.,:=='��i .�- � '�� ;= 1 ' ,:- �;; ,. � � �.- � •� � • � ��s�f CITY OF HAMILTON, OHIO STA TISTICAL TABLES This part of the City'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 Financial Trends S 2—S 21 These schedules contain trend information to help the reader understand how the City's financial position has changed over time. Revenue Capacity S 22—S 34 These schedules contain information to help the reader understand and assess the factors affecting the City's ability to generate its most significant local revenue sources,the income tax and property tax. Debt Capacity S 35—S 47 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Economic and Demographic Information S 48—S 51 These schedules offer economic and demographic indicators to help the reader understand the environment within which the City's financial activities take place and to provide information that facilitates comparisons of financial information over time and among governments. Operating Information S 52—S 65 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 Note: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. - S1 - CITY OF HAMILTON, OHIO Net Position by Component Last Ten Years (accrual basis of accounting) * * * 2013 2014 2015 Governmental Activities: Net Investment in Capital Assets $64,612,820 $68,592,556 $66,544,600 Restricted 9,974,060 6,720,442 8,178,159 Unrestricted(Deficit) 12,148,592 (25,249,747) (28,081,791) Total Governmental Activities Net Position $86,735,472 $50,063,251 $46,640,968 Business-type Activities: Net Investment in Capital Assets $101,543,663 $107,423,550 $100,463,100 Restricted 20,759,192 21,622,744 18,235,929 Unrestricted 44,971,490 24,981,821 29,658,800 Total Business-type Activities Net Position $167,274,345 $154,028,115 $148,357,829 Primary Government: Net Investment in Capital Assets $166,156,483 $176,016,106 $167,007,700 Restricted 30,733,252 28,343,186 26,414,088 Unrestricted 57,120,082 (267,926) 1,577,009 Total Primary Government Net Position $254,009,817 $204,091,366 $194,998,797 *Restated Source: City Records (continued) - 52 - CITY OF HAMILTON, OHIO Net Position by Component Last Ten Years (accr�ual basis of accounting) * * 2016 2017 2018 Governmental Activities: Net Investment in Capital Assets $74,591,613 $82,073,889 $69,635,711 Restricted 6,212,366 7,132,718 5,676,645 Unrestricted(Deficit) (34,082,733) (82,974,765) (73,211,626) Total Governmental Activities Net Position $46,721,246 $6,231,842 $2,100,730 Business-type Activities: Net Investment in Capital Assets $196,783,938 $196,590,931 $191,875,521 Restricted 18,131,101 15,582,840 15,306,399 Unrestricted 62,635,431 33,762,003 29,137,499 Total Business-type Activities Net Position $277,550,470 $245,935,774 $236,319,419 Primary Government: Net Investment in Capital Assets $271,375,551 $278,664,820 $261,511,232 Restricted 24,343,467 22,715,558 20,983,044 Unrestricted 28,552,698 (49,212,762) (44,074,127) Total Primary Government Net Position $324,271,716 $252,167,616 $238,420,149 (continued) - 53 - CITY OF HAMILTON, OHIO Net Position by Component Last Ten Years (accr�ual basis of accounting) 2019 2020 2021 2022 Governmental Activities: Net Investment in Capital Assets $73,715,986 $85,377,651 $98,174,900 $107,664,999 Restricted 9,554,467 8,747,676 20,840,792 25,144,359 Unrestricted(Deficit) (49,812,247) (59,169,890) (57,572,835) (32,863,441) Total Governmental Activities Net Position $33,458,206 $34,955,437 $61,442,857 $99,945,917 Business-type Activities: Net Investment in Capital Assets $192,842,977 $191,648,643 $195,264,437 $192,960,925 Restricted 11,971,595 11,147,393 11,063,967 11,089,133 Unrestricted 28,861,306 25,194,953 42,324,569 53,299,482 Total Business-type Activities Net Position $233,675,878 $227,990,989 $248,652,973 $257,349,540 Primary Government: Net Investment in Capital Assets $266,558,963 $277,026,294 $293,439,337 $300,625,924 Restricted 21,526,062 19,895,069 31,904,759 36,233,492 Unrestricted (20,950,941) (33,974,937) (15,248,266) 20,436,041 Total Primary Government Net Position $267,134,084 $262,946,426 $310,095,830 $357,295,457 - 54 - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accrual basis of accounting) 2013 2014 2015 Expenses Governmental Activities: General Government $6,846,691 $5,495,659 $11,972,665 Security of Persons and Property 29,179,575 27,645,337 29,109,984 Leisure Time Activities 2,552,980 2,828,054 2,788,945 Community Environment 4,757,333 4,341,261 3,213,932 Basic Utility Services 5,696,920 6,088,052 6,779,008 Transportation 5,644,999 5,878,181 5,496,120 Public Health and Welfare Services 1,081,832 1,206,052 1,542,573 Interest and Fiscal Charges 973,805 992,213 1,075,144 Total Governmental Activities Expenses 56,734,135 54,474,809 61,978,371 Business-type Activities: Gas Utility 24,873,444 31,175,555 22,071,290 Electric Utility 57,515,509 64,245,951 65,637,974 Water Utility 14,605,296 13,741,329 14,563,899 Wastewater Utility 12,256,376 11,602,824 12,065,377 Total Business-type Activities Expenses 109,250,625 120,765,659 114,338,540 Total Primary GovernmentExpenses $165,984,760 $175,240,468 $176,316,911 Program Revenues Governmental Activities: Charges for Services General Government $3,315,895 $3,252,331 $3,183,357 Security of Persons and Property 2,804,466 2,963,747 3,055,722 Leisure Time Activities 1,200,984 1,284,944 1,209,724 Communiry Environment 746,272 611,630 456,883 Basic Utility Services 5,903,259 5,933,181 5,839,079 Transportation 645,653 591,655 659,797 Public Health and Welfare Services 253,046 232,987 222,113 Operating Grants and Contributions 8,740,661 5,925,099 5,584,899 Capital Grants and Contributions 1,573,747 1,973,789 2,880,774 Total Governmental Activities Program Revenues 25,183,983 22,769,363 23,092,348 (continued) - SS - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accrual basis of accounting) 2016 2017 2018 Expenses Governmental Activities: General Government $13,748,213 $10,793,974 $7,716,575 Security of Persons and Property 29,364,275 32,248,544 35,283,600 Leisure Time Activities 2,655,781 2,872,495 2,880,127 Community Environment 2,156,324 2,638,446 2,409,400 Basic Utility Services 5,986,601 6,692,126 7,500,327 Transportation 5,398,871 5,418,564 8,072,742 Public Health and Welfare Services 1,392,658 1,876,1 ll 1,525,836 Interest and Fiscal Charges 1,136,751 1,142,343 1,383,549 Total Governmental Activities Expenses 61,839,474 63,682,603 66,772,156 Business-type Activities: Gas Utility 20,059,695 20,169,139 22,634,644 Electric Utility 73,482,880 85,518,469 86,543,649 Water Utility 14,948,562 16,234,3ll 15,631,654 Wastewater Utility 13,232,904 13,359,997 15,037,103 Total Business-type Activities Expenses 121,724,041 135,281,916 139,847,050 Total Primary GovernmentExpenses $183,563,515 $198,964,519 $206,619,206 Program Revenues Governmental Activities: Charges for Services General Government $3,666,535 $4,154,625 $4,132,094 Security of Persons and Property 3,195,876 3,323,603 3,355,144 Leisure Time Activities 1,098,407 1,128,081 1,084,312 Communiry Environment 789,256 333,476 473,146 Basic Utility Services 6,031,405 6,451,263 6,551,126 Transportation 683,059 859,246 846,517 Public Health and Welfare Services 224,444 213,411 224,750 Operating Grants and Contributions 4,469,691 4,556,837 3,508,525 Capital Grants and Contributions 3,186,797 3,504,621 2,800,741 Total Governmental Activities Program Revenues 23,345,470 24,525,163 22,976,355 (continued) - 56 - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accrual basis of accounting) 2019 2020 2021 Expenses Governmental Activities: General Government $8,781,340 $7,266,275 $6,246,010 Security of Persons and Property 4,871,606 35,594,939 33,588,698 Leisure Time Activities 3,182,781 2,232,464 2,012,859 Community Environment 2,644,798 9,914,098 1,818,527 Basic Utility Services 8,728,161 9,878,398 7,558,497 Transportation 8,140,992 5,554,662 6,621,360 Public Health and Welfare Services 1,418,978 2,348,847 712,773 Interest and Fiscal Charges 2,155,256 2,751,191 2,636,393 Total Governmental Activities Expenses 39,923,912 75,540,874 61,195,117 Business-type Activities: Gas Utility 21,001,035 19,067,720 17,796,790 Electric Utility 84,314,775 83,678,299 68,304,783 Water Utility 16,724,324 16,662,378 13,540,250 Wastewater Utility 13,779,455 13,361,201 10,274,234 Total Business-type Activities Expenses 135,819,589 132,769,598 109,916,057 Total Primary GovernmentExpenses $175,743,501 $208,310,472 $171,111,174 Program Revenues Governmental Activities: Charges for Services General Government $4,929,109 $5,300,394 $5,410,568 Security of Persons and Property 3,255,130 2,834,002 2,934,308 Leisure Time Activities 1,064,951 179,882 17,529 Communiry Environment 861,033 898,255 822,130 Basic Utility Services 7,098,064 7,540,591 8,121,292 Transportation 909,805 1,146,078 1,222,650 Public Health and Welfare Services 238,566 223,548 245,595 Operating Grants and Contributions 6,358,220 9,323,536 14,461,507 Capital Grants and Contributions 3,881,170 3,106,891 2,972,337 Total Governmental Activities Program Revenues 28,596,048 30,553,177 36,207,916 (continued) - 57 - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accrual basis of accounting) 2022 Expenses Governmental Activities: General Government $18,470,115 Security of Persons and Property 36,180,916 Leisure Time Activities 2,063,074 Community Environment 3,792,757 Basic Utility Services 6,681,915 Transportation 6,256,765 Public Health and Welfare Services 846,360 Interest and Fiscal Charges 2,815,851 Total Governmental Activities Expenses 77,107,753 Business-type Activities: Gas Utility 20,191,885 Electric Utility 77,236,352 Water Utility 15,504,942 Wastewater Utility 11,865,791 Total Business-type Activities Expenses 124,798,970 Total Primary Government Expenses $201,906,723 Program Revenues Governmental Activities: Charges for Services General Govemment $5,585,668 Security of Persons and Property 3,045,715 Leisure Time Activities 18,403 Communiry Environment 455,952 Basic Utility Services 8,129,162 Transportation 1,316,043 Public Health and Welfare Services 250,886 Operating Grants and Contributions 33,295,944 Capital Grants and Contributions 10,589,705 Total Governmental Activities Program Revenues 62,687,478 (continued) - 58 - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accr�ual basis of accounting) 2013 2014 2015 Business-type Activities: Charges for Services Gas Utility 24,742,117 29,369,479 21,979,425 Electric Utility 60,346,033 61,577,164 64,619,906 Water Utility 14,656,538 14,865,682 12,550,024 Wastewater Utility 11,779,979 12,037,408 11,821,865 Operating Grants and Contributions 0 0 0 Capital Grants and Contributions 0 713,516 0 Total Business-type Activities Program Revenues 111,524,667 ll 8,563,249 110,971,220 Total Primary Government Program Revenues 136,708,650 141,332,612 134,063,568 Net(Expense)/Revenue Governmental Activities (31,550,152) (31,705,446) (38,886,023) Business-type Activities 2,274,042 (2,202,410) (3,367,320) Total Primary Government Net(Expense)/Revenue ($29,276,110) ($33,907,856) ($42,253,343) General Revenues and Other Changes in Net Position Governmental Activities: Income Taxes $22,310,512 $23,354,264 $24,852,412 Property and Other Local Taxes 8,961,444 8,709,596 8,959,287 Intergovernmental,Unrestricted 3,210,419 2,674,829 2,691,164 Investment Earnings (69,511) 253,825 114,686 Miscellaneous 751,688 1,021,094 1,635,091 Transfers 0 0 (46,727) Total Governmental Activities 35,164,552 36,013,608 38,205,913 Business-type Activities: Other Local Taxes (kWh Tax) 0 0 0 Investment Earnings 73,168 1,053,605 317,485 Transfers 0 0 46,727 Special Items 2,850,000 0 0 Total Business-type Activities 2,923,168 1,053,605 364,212 Total Primary Government $38,087,720 $37,067,213 $38,570,125 Change in Net Position Governmental Activities $3,614,400 $4,308,162 ($680,110) Business-type Activities 5,197,210 (1,148,805) (3,003,108) Total Primary Government Change in Net Position $8,811,610 $3,159,357 ($3,683,218) (continued) - 59 - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accr�ual basis of accounting) 2016 2017 2018 Business-type Activities: Charges for Services Gas Utility 19,086,678 18,482,683 21,756,412 Electric Utility 66,319,492 70,567,830 79,889,209 Water Utility 13,088,389 13,390,954 13,904,531 Wastewater Utility 12,385,219 12,368,579 12,653,041 Operating Grants and Contributions 743,247 743,577 744,842 Capital Grants and Contributions 0 0 0 Total Business-type Activities Program Revenues 111,623,025 115,553,623 128,948,035 Total Primary Government Program Revenues 134,968,495 140,078,786 151,924,390 Net(Expense)/Revenue Governmental Activities (38,494,004) (39,157,440) (43,795,801) Business-type Activities (10,101,016) (19,728,293) (10,899,015) Total Primary Government Net(Expense)/Revenue ($48,595,020) ($58,885,733) ($54,694,816) General Revenues and Other Changes in Net Position Governmental Activities: Income Taxes $25,970,527 $25,664,959 $26,716,305 Property and Other Local Taxes 8,627,124 8,581,044 8,999,351 Intergovernmental,Unrestricted 2,342,386 2,206,014 2,281,996 Investment Earnings 28,749 196,209 314,480 Miscellaneous 1,605,496 1,509,998 1,198,278 Transfers 0 0 0 Total Governmental Activities 38,574,282 38,158,224 39,510,410 Business-type Activities: Other Local Taxes (kWh Tax) 2,952 0 0 Investment Earnings 290,705 781,792 1,282,660 Transfers 0 0 0 Special Items 139,000,000 0 0 Total Business-type Activities 139,293,657 781,792 1,282,660 Total Primary Government $177,867,939 $38,940,016 $40,793,070 Change in Net Position Governmental Activities $80,278 ($999,216) ($4,285,391) Business-type Activities 129,192,641 (18,946,501) (9,616,355) Total Primary Government Change in Net Position $129,272,919 ($19,945,717) ($13,901,746) (continued) - S 10 - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accr�ual basis of accounting) 2019 2020 2021 Business-type Activities: Charges for Services Gas Utility 21,076,426 17,849,755 18,111,405 Electric Utility 81,730,855 80,238,628 85,535,709 Water Utility 14,747,917 14,396,099 14,301,554 Wastewater Utility 13,454,526 13,109,026 12,971,767 Operating Grants and Contributions 742,114 85,733 0 Capital Grants and Contributions 0 0 0 Total Business-type Activities Program Revenues 131,751,838 125,679,241 130,920,435 Total Primary Government Program Revenues 131,751,838 125,679,241 130,920,435 Net(Expense)/Revenue Governmental Activities (11,327,864) (44,987,697) (24,987,201) Business-type Activities (4,067,751) (7,090,357) 21,004,378 Total Primary Government Net(Expense)/Revenue ($15,395,615) ($52,078,054) ($3,982,823) General Revenues and Other Changes in Net Position Governmental Activities: Income Taxes $28,838,412 $30,414,174 $31,245,133 Property and Other Local Taxes 8,998,489 9,081,485 13,012,233 Intergovernmental,Unrestricted 2,742,242 2,543,229 3,066,316 Investment Earnings 773,556 723,360 (142,439) Miscellaneous 1,332,641 3,722,680 4,293,378 Transfers 0 0 0 Total Governmental Activities 42,685,340 46,484,928 51,474,621 Business-type Activities: Other Local Taxes (kWh Tax) 0 0 0 Investment Earnings 1,424,210 1,405,468 (342,394) Transfers 0 0 0 Special Items 0 0 0 Total Business-type Activities 1,424,210 1,405,468 (342,394) Total Primary Government $44,109,550 $47,890,396 $51,132,227 Change in Net Position Governmental Activities $31,357,476 $1,497,231 $26,487,420 Business-type Activities (2,643,541) (5,684,889) 20,661,984 Total Primary Government Change in Net Position $28,713,935 ($4,187,658) $47,149,404 (continued) - 511 - CITY OF HAMILTON, OHIO Changes in Net Position Last Ten Years (accrual basis of accounting) 2022 Business-type Activities: Charges for Services Gas Utility 19,230,682 Electric Utility 86,535,081 Water Utility 14,959,968 Wastewater Utility 13,002,156 Operating Grants and Contributions 0 Capital Grants and Contributions 0 Total Business-type Activities Program Revenues 133,727,887 Total Primary Government Prograin Revenues 133,727,887 Net(Expense)/Revenue Governmental Activities (14,420,275) Business-type Activities 8,928,917 Total Primary Government Net(Expense)/Revenue ($5,491,358) General Revenues and Other Changes in Net Position Governmental Activities: Income Taxes $36,761,592 Property and Other Local Taxes 14,352,323 Intergovernmental,Unrestricted 3,240,413 Investment Earnings (1,819,798) Miscellaneous 1,383,805 Transfers (995,000) Total Governmental Activities 52,923,335 Business-type Activities: Other Local Taxes (kWh Tax) 0 Investment Earnings (1,227,350) Transfers 995,000 Special Items 0 Total Business-type Activities (232,350) Total Primary Government $52,690,985 Change in Net Position Governmental Activities $38,503,060 Business-type Activities 8,696,567 Total Primary Government Change in Net Position $47,199,627 - S 12 - CITY OF HAMILTON, OHIO Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) * 2013 2014 2015 2016 General Fund Nonspendable $157,427 $257,910 $273,120 $270,135 Restricted 0 0 0 0 Committed 0 0 0 0 Assigned 2,591,073 3,513,033 2,027,ll9 1,598,710 Unassigned 8,272,712 7,986,708 11,602,256 7,267,975 Total General Fund 11,021,212 ll,757,651 13,902,495 9,136,820 All Other Governmental Funds Nonspendable $128,399 $173,681 $169,184 $176,403 Restricted 14,833,337 9,753,522 5,294,588 2,748,424 Comrnitted 4,031,504 4,492,651 4,386,446 4,438,845 Assigned 2,240,056 3,386,345 843,659 103,101 Unassigned (473,703) (98,694) (36,116) (391,739) Total All Other Governmental Funds 20,759,593 17,707,505 10,657,761 7,075,034 Total Governmental Funds $31,780,805 $29,465,156 $24,560,256 $16,211,854 (continued) Source: City Records * Restated - S13 - CITY OF HAMILTON, OHIO Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) * 2017 2018 2019 2020 General Fund Nonspendable $241,555 $272,307 $228,832 $281,476 Restricted 0 0 0 0 Committed 0 0 0 0 Assigned 2,141,318 3,735,047 3,123,241 5,734,275 Unassigned 5,504,248 12,462,795 13,689,068 19,346,447 Total General Fund 7,887,121 16,470,149 17,041,141 25,362,198 All Other Governmental Funds Nonspendable $167,074 $161,087 $135,027 $162,527 Restricted 3,607,737 2,621,820 6,157,749 38,307,485 Comrnitted 3,901,117 3,893,237 3,382,530 2,507,621 Assigned 5,255 490,909 14,359,229 7,004,568 Unassigned (5,155,483) (2,900,490) (650,864) (1,063,149) Total All Other Governmental Funds 2,525,700 4,266,563 23,383,671 46,919,052 Total Governmental Funds $10,412,821 $20,736,712 $40,424,812 $72,281,250 (continued) - S 14 - CITY OF HAMILTON, OHIO Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) 2021 2022 General Fund Nonspendable $325,705 $388,893 Restricted 7,000,000 7,000,000 Committed 0 0 Assigned 6,354,659 6,292,751 Unassigned 18,559,678 18,521,286 Total General Fund 32,240,042 32,202,930 All Other Governmental Funds Nonspendable $187,935 $146,ll 4 Restricted 37,574,978 46,248,176 Comrnitted 1,976,869 3,777,156 Assigned 6,177,139 15,462,246 Unassigned (1,325,806) (2,000,434) Total All Other Governmental Funds 44,591,ll5 63,633,258 Total Governmental Funds $76,831,157 $95,836,188 - 515 - CITY OF HAMILTON, OHIO Changes in Fund Balances, Governmental Funds Last Ten Years (modifzed accrual basis of accounting) 2013 2014 2015 2016 Revenues: Taxes $30,392,344 $31,793,857 $33,637,684 $34,425,266 Intergovernmental Revenues 13,552,982 10,403,668 10,354,357 10,075,259 Charges for Services 12,367,803 12,274,857 12,210,156 12,746,544 Licenses and Permits 935,844 1,036,845 1,018,831 1,086,953 Investment Earnings (59,847) 253,825 114,686 28,749 Special Assessments 668,686 626,396 457,761 452,533 Fines and Forfeitures 821,866 947,713 944,175 1,063,974 All Other Revenue 751,688 1,021,094 1,635,091 1,880,496 Total Revenues 59,431,366 58,358,255 60,372,741 61,759,774 Expenditures: Current: General Government 6,456,639 4,599,445 5,203,607 10,186,194 Security of Persons and Property 27,840,266 26,527,614 26,548,7ll 27,434,430 Leisure Time Activities 2,731,042 2,406,632 2,427,067 2,318,248 Community Environment 4,639,097 4,195,166 3,004,125 2,162,524 Basic Utility Services 5,621,039 5,847,541 6,354,117 8,344,578 Transportation 3,496,658 3,761,881 3,161,989 4,109,609 Public Health and Welfare Services 1,042,523 1,144,033 1,455,638 1,398,872 CapitalOutlay 6,069,186 8,688,731 14,304,429 11,282,845 Debt Service: Principal Retirement 2,365,000 2,405,000 2,559,963 3,208,002 Interest and Fiscal Charges 1,187,163 1,134,543 1,217,255 1,283,266 Total Expenditures 61,448,613 60,710,586 66,236,901 71,728,568 Excess (Deficiency) of Revenues Over Expenditures (2,017,247) (2,352,331) (5,864,160) (9,968,794) (continued) - S 16 - CITY OF HAMILTON, OHIO Changes in Fund Balances, Governmental Funds Last Ten Years (modifzed accrual basis of accounting) 2017 2018 2019 2020 Revenues: Taxes $34,475,333 $35,923,106 $37,764,569 $39,426,581 Intergovernmental Revenues 10,152,144 8,965,068 12,579,271 14,877,943 Charges for Services 14,098,978 13,941,420 14,943,430 14,404,805 LicensesandPermits 1,ll0,347 1,307,990 1,572,057 2,123,975 Investment Earnings 196,209 314,480 773,556 723,360 Special Assessments 345,325 613,095 753,092 920,081 Fines and Forfeitures 923,483 942,788 964,239 687,791 All Other Revenue 1,509,998 1,198,278 1,059,463 3,995,858 TotalRevenues 62,811,817 63,206,225 70,409,677 77,160,394 Expenditures: Current: General Government 7,066,643 5,257,017 6,224,429 6,246,754 Security of Persons and Property 28,794,336 29,505,532 31,629,829 30,985,000 Leisure Time Activities 2,536,998 2,461,376 2,730,146 1,810,018 Community Environment 2,406,167 2,283,037 2,339,378 1,729,218 Basic Utility Services 8,644,891 7,196,824 8,087,683 9,311,833 Transportation 3,226,018 3,365,740 3,196,931 3,066,211 Public Health and Welfare Services 1,679,277 1,406,363 1,200,403 2,203,987 Capital Outlay 12,560,55 8 10,094,186 10,610,750 17,843,220 Debt Service: Principal Retirement 12,215,116 2,604,211 11,966,907 5,991,407 Interest and Fiscal Charges 1,183,980 1,296,558 1,648,529 2,396,199 Total Expenditures 80,313,984 65,470,844 79,634,985 81,583,847 Excess (Deficiency) of Revenues Over Expenditures (17,502,167) (2,264,619) (9,225,308) (4,423,453) (continued) - S 17 - CITY OF HAMILTON, OHIO Changes in Fund Balances, Governmental Funds Last Ten Years (modifzed accrual basis of accounting) 2021 2022 Revenues: Taxes $44,175,481 $50,658,918 Intergovernmental Revenues 20,352,433 47,202,569 Charges for Services 15,278,500 15,704,485 Licenses and Permits 1,898,991 1,963,308 Investment Earnings (142,439) (1,819,798) Special Assessments 750,651 518,976 Fines and Forfeitures 766,354 661,527 All Other Revenue 4,293,378 1,383,805 Total Revenues 87,373,349 116,273,790 Expenditures: Current: General Government 9,714,308 13,811,730 Security of Persons and Property 33,422,400 36,268,529 Leisure Time Activities 1,768,933 1,790,142 Community Environment 2,336,432 5,066,502 Basic Utility Services 10,242,782 9,429,483 Transportation 4,814,747 7,258,075 Public Health and Welfare Services 1,033,670 1,061,662 Capital Outlay 16,433,795 16,802,385 Debt Service: Principal Retirement 3,077,208 3,042,357 Interest and Fiscal Charges 2,532,544 2,796,834 Total Expenditures 85,376,819 97,327,699 Excess (Deficiency) of Revenues Over Expenditures 1,996,530 18,946,091 (continued) - S18 - CITY OF HAMILTON, OHIO Changes in Fund Balances, Governmental Funds Last Ten Years (modifzed accrual basis of accounting) 2013 2014 2015 2016 Other Financing Sources (Uses): Sale of Capital Assets 115,852 29,359 65,721 15,336 Lease Issuance 0 0 0 0 Ohio Water Development Authority Loans 0 0 0 1,592,766 Loan Issuance 9,500,000 0 700,000 0 Bonds and Notes Issued 0 0 0 0 Premium on Debt Issuance 0 0 0 0 Discount on Debt Issuance 0 0 0 0 Refunding Bonds Issued 0 0 0 0 Refunded Bonds Redeemed 0 0 0 0 Long Term Note Issuance 0 0 0 0 Transfers In 7,500,414 11,699,277 10,725,880 10,319,607 Transfers Out (7,500,414) (11,699,277) (10,522,975) (10,319,607) Total Other Financing Sources (Uses) 9,615,852 29,359 968,626 1,608,102 Net Change in Fund Balance $7,598,605 ($2,322,972) ($4,895,534) ($8,360,692) Debt Service as a Percentage of Noncapital Expenditures 6.30% 6.59% 6.78% 7.50% (continued) Source: City Records - S 19 - CITY OF HAMILTON, OHIO Changes in Fund Balances, Governmental Funds Last Ten Years (modifzed accrual basis of accounting) 2017 2018 2019 2020 Other Financing Sources (Uses): Sale of Capital Assets 22,411 750,708 81,958 959,246 Lease Issuance 0 0 0 0 Ohio Water Development Authority Loans 0 0 0 803,232 Loan Issuance 1,427,128 266,705 24,952,286 0 Bonds andNotes Issued 1,196,214 11,470,000 0 33,030,000 Premium on Debt Issuance 0 242 0 356,083 Discount on Debt Issuance 0 (54,429) 0 0 Refunding Bonds Issued 23,141,416 0 0 31,650,000 Refunded Bonds Redeemed (14,087,879) 0 0 (30,538,765) Long Term Note Issuance 0 0 3,893,340 0 Transfers In 6,973,964 14,002,163 7,534,399 12,010,540 Transfers Out (6,973,964) (14,002,163) (7,534,399) (12,010,540) Total Other Financing Sources (Uses) 11,699,290 12,433,226 28,927,584 36,259,796 Net Change in Fund Balance ($5,802,877) $10,168,607 $19,702,276 $31,836,343 Debt Service as a Percentage of Noncapital Expenditures 19.58% 6.60% 18.76% 11.43% (continued) - S20 - CITY OF HAMILTON, OHIO Changes in Fund Balances, Governmental Funds Last Ten Years (modifzed accrual basis of accounting) 2021 2022 Other Financing Sources (Uses): Sale of Capital Assets 116,840 19,630 Lease Issuance 0 356,509 Ohio Water Development Authority Loans 1,419,405 564,711 Loan Issuance 0 150,561 Bonds and Notes Issued 1,000,000 0 Premium on Debt Issuance 0 0 Discount on Debt Issuance 0 0 Refunding Bonds Issued 0 0 Refunded Bonds Redeemed 0 0 Long Term Note Issuance 0 0 Transfers In 7,829,713 25,337,248 Transfers Out (7,829,713) (26,332,248) Total Other Financing Sources (Uses) 2,536,245 96,411 Net Change in Fund Balance $4,532,775 $19,042,502 Debt Service as a Percentage of Noncapital Expenditures 8.36% 7.63% - S21 - CITY OF HAMILTON, OHIO Assessed Tlaluations and Estimated Ti�ue T�alues of Taxable Property (per$1,000 of assessed value) Last Ten Years Tax Year 2013 2014 2015 2016 Real Property Assessed $805,839,810 $753,521,500 $747,624,230 $744,751,530 Actual 2,302,399,457 2,152,918,571 2,136,069,229 2,127,861,514 Public Utility Assessed 4,726,410 4,763,000 4,937,810 5,062,790 Actual 4,726,410 4,763,000 4,937,810 5,062,790 Total Assessed 810,566,220 758,284,500 752,562,040 749,814,320 Actual 2,307,125,867 2,157,681,571 2,141,007,039 2,132,924,304 Assessed Value as a Percentage of Actual Value 35.13% 35.14% 35.15% 35.15% Total Direct Tax Rate $6.81 $6.81 $6.81 $6.81 Source: Butler County Auditor (continued) - 522 - CITY OF HAMILTON, OHIO Assessed Tlaluations and Estimated Ti�ue T�alues of Taxable Property (per$1,000 of assessed value) Last Ten Years Tax Year 2017 2018 2019 2020 Real Property Assessed $789,655,500 $788,116,750 $799,255,590 $928,920,100 Actual 2,256,158,571 2,251,762,143 2,283,587,400 2,654,057,429 Public Utility Assessed 5,309,340 5,738,750 5,848,920 6,520,190 Actual 5,309,340 5,738,750 5,848,920 6,520,190 Total Assessed 794,964,840 793,855,500 805,104,510 935,440,290 Actual 2,261,467,911 2,257,500,893 2,289,436,320 2,660,577,619 Assessed Value as a Percentage of Actual Value 35.15% 35.17% 35.17% 35.16% Total Direct Tax Rate $6.81 $6.81 $6.81 $10.71 (continued) - 523 - CITY OF HAMILTON, OHIO Assessed Valuations and Estimated True T�alues of Taxable Property (per$1,000 of assessed value) Last Ten Years Tax Year 2021 2022 Real Property Assessed $931,870,700 $963,823,710 Actual 2,662,487,714 2,753,782,029 Public Utility Assessed 10,228,090 8,006,200 Actual 10,228,090 8,006,200 Total Assessed 942,098,790 971,829,910 Actual 2,672,715,804 2,761,788,229 Assessed Value as a Percentage of Actual Value 35.25% 35.19% Total Direct Tax Rate $10.71 $10.71 - 524 - CITY OF HAMILTON, OHIO Property Tax Levies and Collections Last Ten Calendar Years Calendar Year 2013 2014 2015 2016 Taxes Levied for the Calendar Year $5,409,302 $5,349,390 $5,091,799 $5,060,320 Collected within the Calendar Year of the Levy Amount 5,042,759 5,043,851 4,837,997 4,845,600 Percent of Levy 93.22% 94.29% 95.02% 95.76% Collections in Subsequent Years (1) 231,531 258,114 262,126 221,457 Total Collections to Date Amount 5,274,290 5,301,965 5,100,123 5,067,057 Percent of Levy 97.50% 99.11% 100.16% 100.13% Source: County Auditor (1) The County does not identify delinquent tax collections by tax year. (continued) - 525 - CITY OF HAMILTON, OHIO Property Ta�Levies and Collections Last Ten Calendar Years Calendar Year 2017 2018 2019 2020 Taxes Levied for the Calendar Year $5,046,008 $5,268,044 $5,263,202 $5,337,176 Collected within the Calendar Year of the Levy Amount 4,847,791 5,048,100 5,087,861 5,111,567 Percent of Levy 96.07% 95.82% 96.67% 95.77% Collections in Subsequent Years(1) 245,331 237,315 253,409 199,998 Total Collections to Date Amount 5,093,122 5,285,415 5,341,270 5,311,565 Percent of Levy 100.93% 100.33% 101.48% 99.52% (continued) - 526 - CITY OF HAMILTON, OHIO Property Ta�Levies and Collections Last Ten Calendar Years Calendar Year 2021 2022 Taxes Levied for the Calendar Year $9,187,665 $9,242,216 Collected within the Calendar Year of the Levy Amount 8,784,460 8,884,567 Percent of Levy 95.61% 96.13% Collections in Subsequent Years(1) 328,067 327,999 Total Collections to Date Amount 9,112,527 9,212,566 Percent of Levy 99.18% 99.68% - 527 - CITY OF HAMILTON, OHIO Direct and Overlapping Property Tax Rates Last Ten CalendaY Years 2013 2014 2015 2016 2017 Direct Rates General Fund 4.21 4.21 4.21 4.21 4.21 Police Pension Fund 0.30 0.30 0.30 0.30 0.30 Fire Pension Fund 0.30 0.30 0.30 0.30 0.30 Police/ Fire-EMS Levies 2.00 2.00 2.00 2.00 2.00 Street Levy 0.00 0.00 0.00 0.00 0.00 Total Direct Rate 6.81 6.81 6.81 6.81 6.81 Overlapping Rates Hamilton City School District 53.61 55.61 54.81 54.81 54.31 Butler County 9.72 9.72 9.72 9.72 9.72 Source: County Auditor Note: Rates may only be raised by obtaining the approval of a majority of the voters at a public election. (continued) - 528 - CITY OF HAMILTON, OHIO Direct and Overlapping Property Tax Rates Last Ten CalendaY Years 2018 2019 2020 2021 2022 Direct Rates General Fund 4.21 4.21 4.21 4.21 4.21 Police Pension Fund 0.30 0.30 0.30 0.30 0.30 Fire Pension Fund 0.30 0.30 0.30 0.30 0.30 Police/ Fire-EMS Levies 2.00 2.00 2.00 2.00 2.00 Street Levy 0.00 0.00 3.90 3.90 3.90 Total Direct Rate 6.81 6.81 10.71 10.71 10.71 Overlapping Rates Hamilton City School District 53.81 53.31 52.81 52.56 52.56 Butler County 9.72 9.72 9.22 7.30 9.72 - 529 - CITY OF HAMILTON, OHIO Principal Property Tax Payers Current Year and Nine Years Ago 2022 Percentage Assessed of Total Tax Payer Nature of Business Value Assessed Value Colonial Senior Services Healthcare $7,167,590 0.74% Saica Pack US Manufacturing 6,729,810 0.69°/o Duke Energy Utility 5,885,050 0.61% Hamilton Community Authority Government 5,279,630 0.54% Pedcor Investments Investments 5,257,090 0.54% Tippmann Realty Real Estate 4,919,240 0.51% Bethesda Hospital Healthcare 4,697,490 0.48% Shadow Creek Apartments Real Estate 4,666,710 0.48% AHP Knollwood Crossing Real Estate 4,377,180 0.45% Wish Village Apartments Real Estate 3,585,800 0.37% Sub-Total 52,565,590 5.41% AllOthers 919,264,320 94.59% Total $971,829,910 100.00% 2013 Percentage Assessed of Total Tax Payer Nature of Business Value Assessed Value Shadow Creek Apartments Real Estate $5,126,050 0.63% Tippmann Realty Partners Real Estate 5,075,840 0.63% Colonial Senior Services Healthcare 4,437,090 0.55% AHP-Knollwood Crossing Real Estate 4,403,310 0.54% Pedcor Investments 2004 Investments 4,006,940 0.49% Duke Realty Real Estate 3,577,710 0.44% Meijers Stores Retail 3,272,510 0.40% Duke Energy Utility 2,480,730 0.31% Gold Ring Holdings Real Estate 2,396,580 0.30% VCG-Hamilton Crossings Real Estate 2,380,000 0.29% Sub-Total 37,156,760 4.58% AllOthers 773,409,460 95.42% Total $810,566,220 100.00°/o Source: County Auditor - 530 - CITY OF HAMILTON, OHIO Income Tcrx Collection Receipts by Fund (Cash Basis ofAccounting) Last Ten CalendaY Years 2013 2014 2015 2016 GeneralFund�i� $17,464,829 $17,840,205 $19,347,853 $20,442,128 Public Safety/Health Income Tax Fund�z> 2,844,699 2,897,290 3,120,623 3,297,ll9 Hamilton Capital Improvement Fund�3> 2,275,758 2,317,831 2,496,498 2,637,695 Total $22,585,286 $23,055,326 $24,964,974 $26,376,942 Income Tax Rate�a� 2.00 2.00 2.00 2.00 (continued) Source: City Records (1)-Equates to 1.55%of 2.00%total rate, or 77.50%of total (2)-Equates to 025%of 2.00%total rate, or 12.50%of total (3)-Equates to 0.20%of 2.00%total rate, or 10.00%of total (4)-Effective Dates of Levy: Note: Increases in the income tax rate requires voter approval. - S31 - CITY OF HAMILTON, OHIO Income Tax Collection Receipts by Fund (Cash Basis of Accountin� Last Ten Calendar Years 2017 2018 2019 2020 General Fund�i> $20,597,611 $21,195,154 $22,770,473 $23,087,295 Public Safety/Health Income Tax Fund�z� 3,322,196 3,416,956 3,672,615 3,726,698 Hamilton Capital Improvement Fund�s� 2,657,757 2,733,479 2,938,092 2,981,359 Total $26,577,564 $27,345,589 $29,381,180 $29,795,352 Income Tax Rate�4� 2.00 2.00 2.00 2.00 (continued) - 532 - CITY OF HAMILTON, OHIO Income Tcrx Collection Receipts by Fund (Cash Basis ofAccounting) Last Ten CalendaY Years 2021 2022 General Fund�i� $24,527,610 $27,266,310 Public Safety/Health Income Tax Fund�z> 3,956,064 4,394,076 Hamilton Capital Improvement Fund�3> 3,164,855 3,521,829 Total $31,648,529 $35,182,215 Income Tax Rate(4� 2.00 2.00 - S33 - CITY OF HAMILTON, OHIO Principal Income Tax Payers Current Year and Nine Years Ago 2022 Employer Nature of Business Rank Butler County Auditor Government 1 Hamilton City School District Education 2 Kettering Medical Center Network Healthcare 3 ThyssenKrupp Bilstein of America Inc. Manufacturing 4 City of Hamilton Government 5 Matandy Steel Metal Products Manufacturing 6 Bethesda Hospital Inc. Healthcare 7 Valeo Climate Control Manufacturing 8 Alliance Physicians Inc. Healthcare 9 Vinyl Max LLC Manufacturing 10 2013 Employer Nature of Business Rank Butler County Government 1 Hamilton City School District Education 2 City of Hamilton Government 3 Kettering Medical Center Network Healthcare 4 ThyssenKrupp Bilstein of America Manufacturing 5 Miami University Education 6 GE Engine Services, Inc. Manufacturing 7 Alliance Physicians Inc. Healthcare 8 Valeo Climate Control Manufacturing 9 Bethesda Hospital Inc. Healthcare 10 Note:Due to legal restrictions and confidentiality requirements,the City cannot disclose the amount of withholdings by taxpayer. - 534 - CITY OF HAMILTON, OHIO Ratios of Outstanding Debt By Type Last Ten Years 2013 2014 2015 2016 Governmental Activities (1) General Obligation Bonds $25,701,350 $23,258,690 $20,762,700 $18,218,564 Special Obligation Non-Tax Revenue Bonds 0 0 0 0 Income Tax Revenue Bonds 0 0 0 0 InstallmentLoans 9,500,000 9,500,000 10,115,037 9,432,035 Special Assessment Bonds 1,060,000 920,000 770,000 625,000 OWDA Loans 0 0 0 1,592,766 Leases 0 0 0 0 Long Term Notes 0 0 0 0 Business-type Activities (1) Water Revenue Bonds $23,655,911 $22,574,819 $28,817,338 $28,116,322 OWDA Loans 383,412 366,201 339,322 334,401 OPWC Loans 0 0 0 3,869,759 General Obligation Bonds 0 0 0 0 Gas Bonds 7,268,857 5,895,337 4,467,672 4,221,385 Enterprise Notes 10,690,000 10,690,000 103,695,000 0 Installment Loans 0 0 0 0 Electric Revenue Bonds 146,129,261 137,642,002 30,924,820 30,111,546 Wastewater Bonds 56,274,683 54,084,065 51,824,871 49,533,503 Total Primary Government $280,663,474 $264,931,114 $251,716,760 $146,055,281 Population (2) City of Hamilton 62,477 62,258 62,486 62,359 Outstanding Debt Per Capita $4,492 $4,255 $4,028 $2,342 Income (3) Personal (in thousands) (a) 14,468,982 14,592,475 15,294,831 15,631,343 Percentage of Personal Income 1.94% 1.82% 1.65% 0.93% Sources: (1) City Records (2) U.S. Bureau of Census,Population Division (3) U.S. Department of Commerce,Bureau of Economic Analysis (a) Per Capita Income is only available for the County, Total Personal Income is presented for the County. (continued) - 535 - CITY OF HAMILTON, OHIO Ratios of Outstanding Debt By Type Last Ten Years 2017 2018 2019 2020 Governmental Activities (1) General Obligation Bonds $3,211,639 $14,057,373 $13,402,229 $15,472,141 Special Obligation Non-Tax Revenue Bonds 0 0 0 31,900,000 Income Tax Revenue Bonds 22,789,549 20,915,338 10,265,609 9,508,411 Installment Loans 0 0 24,335,000 23,870,000 Special Assessment Bonds 470,000 305,000 210,000 110,000 OWDA Loans 3,019,894 3,286,599 3,331,707 4,039,070 Leases 0 0 0 0 Long Term Notes 0 0 3,893,340 0 Business-type Activities (1) Water Revenue Bonds $21,738,885 $30,014,128 $31,262,ll0 $30,218,664 OWDA Loans 1,243,921 1,868,038 2,194,157 2,099,414 OPWC Loans 4,967,531 7,142,237 8,376,372 10,092,208 General Obligation Bonds 0 555,000 535,000 515,000 Gas Bonds 5,770,000 6,965,000 6,380,000 5,775,000 Enterprise Notes 45,220,000 0 0 0 Installment Loans 0 0 0 0 Electric Revenue Bonds 16,269,523 28,883,975 42,712,319 41,345,459 Wastewater Bonds 21,484,866 45,495,404 42,649,583 40,380,752 Total Primary Government $146,185,808 $159,488,092 $189,547,426 $215,326,119 Population (2) City of Hamilton 62,127 62,092 62,174 62,182 Outstanding Debt Per Capita $2,353 $2,569 $3,049 $3,463 Income (3) Personal (in thousands) (a) 15,680,621 16,197,532 16,229,556 18,217,377 Percentage of Personal Income 0.93% 0.98% 1.17% 1.18% (continued) - 536 - CITY OF HAMILTON, OHIO Ratios of Outstanding Debt By Type Last Ten Years 2021 2022 Governmental Activities (1) General Obligation Bonds $14,760,281 $14,203,421 Special Obligation Non-Tax Revenue Bonds 31,900,000 31,820,000 Income Tax Revenue Bonds 8,740,092 7,051,861 Installment Loans 23,390,000 22,990,631 Special Assessment Bonds 30,000 15,000 OWDA Loans 5,394,586 5,830,307 Leases 0 306,303 Long Term Notes 0 0 Business-type Activities (1) Water Revenue Bonds $29,175,218 $28,101,772 OWDA Loans 2,123,373 2,016,234 OPWC Loans 12,123,933 12,604,386 General Obligation Bonds 495,000 470,000 Gas Bonds 5,155,000 4,520,000 Enterprise Notes 0 0 Installment Loans 0 252,889 Electric Revenue Bonds 39,948,599 38,506,739 Wastewater Bonds 38,081,921 35,723,9ll Total Primary Govemment $211,318,003 $204,413,454 Population (2) CityofHamilton 63,399 63,127 Outstanding Debt Per Capita $3,333 $3,238 Income (3) Personal (in thousands)(a) 18,371,762 20,525,528 Percentage of Personal Income 1.15% 1.00% - 537 - CITY OF HAMILTON, OHIO Ratios of General Bonded Debt Outstanding Last Ten Years Year 2013 2014 2015 2016 Population (1) 62,477 62,258 62,486 62,359 Actual Value(in thousands) (2) $2,307,126 $2,157,682 $2,141,007 $2,132,924 General Bonded Debt (3) General Obligation Bonds $25,701,350 $23,258,690 $20,762,700 $18,218,564 Total General Bonded Debt $25,701,350 $23,258,690 $20,762,700 $18,218,564 Resources Available to Pay Principal $0 $0 $0 $0 Net General Bonded Debt $25,701,350 $23,258,690 $20,762,700 $18,218,564 Ratio of Net Bonded Debt to Estimated Actual Value 1.11% 1.08% 0.97% 0.85% Net Bonded Debt per Capita $41137 $373.59 $332.28 $292.16 Source: (1) U.S.Bureau of Census of Population (2) Butler County Auditor (3) Includes all general obligation bonded debt supported by property taxes. (continued) - 538 - CITY OF HAMILTON, OHIO Ratios of General Bonded Debt Outstanding Last Ten Years Year 2017 2018 2019 2020 Population (1) 62,127 62,092 62,174 62,182 Actual Value(in thousands) (2) $2,261,468 $2,257,501 $2,289,436 $2,660,578 General Bonded Debt (3) General Obligation Bonds $3,211,639 $14,612,373 $13,937,229 $15,987,141 Total General Bonded Debt $3,211,639 $14,612,373 $13,937,229 $15,987,141 Resources Available to Pay Principal $0 $0 $0 $0 Net General Bonded Debt $3,211,639 $14,612,373 $13,937,229 $15,987,141 Ratio of Net Bonded Debt to Estimated Actual Value 0.14% 0.65% 0.61% 0.60% Net Bonded Debt per Capita $51.69 $235.33 $224.16 $257.10 (continued) - 539 - CITY OF HAMILTON, OHIO Ratios of General Bonded Debt Outstanding Last Ten Years Year 2021 2022 Population (1) 63,399 63,127 Actual Value(in thousands) (2) $2,672,716 $2,761,788 General Bonded Debt (3) General Obligation Bonds $15,255,281 $14,673,421 Total General Bonded Debt $15,255,281 $14,673,421 Resources Available to Pay Principal $0 $0 Net General Bonded Debt $15,255,281 $14,673,421 Ratio of Net Bonded Debt to Estimated Actual Value 0.57% 0.53% Net Bonded Debt per Capita $240.62 $232.44 - 540 - CITY OF HAMILTON, OHIO Computation of Direct and Overlapping Debt Attributable to Governmental Activities December 31, 2022 Percentage Amount Applicable to Applicable to Gross Debt the City of the City of Jurisdiction Outstanding Hamilton (1) Hamilton Direct: City of Hamilton $82,217,523 100.00% $82,217,523 Overlapping: Butler County 20,290,270 9.73% 1,974,243 Hamilton City School District 45,510,000 96.85% 44,076,435 Talawanda City School District 21,800,000 3.23% 704,140 Ross Local School District 8,705,000 0.40% 34,820 Subtotal 46,789,638 Total $129,007,161 (1) Percentages were determined by dividing the assessed valuation of the political subdivision located within the boundaries of the City by the total assessed valuation of the political subdivision. Source: Ohio Auditor of State - 541 - CITY OF HAMILTON, OHIO Debt Limitations Last Ten Years Tax Year 2013 2014 2015 2016 Total Debt Net Assessed Valuation $810,566,220 $758,284,500 $752,562,040 $749,814,320 Legal Debt Limitation(%) (1) 10.50% 10.50% 10.50% 10.50% Legal Debt Limitation($) (1) 85,109,453 79,619,873 79,019,014 78,730,504 City Debt Outstanding(2) 23,875,438 21,739,256 19,720,000 17,340,000 Less: Applicable Debt Service Fund Amounts 0 0 0 0 Net Indebtedness Subject to Limitation(2) 23,875,438 21,739,256 19,720,000 17,340,000 Overall Legal Debt Margin $61,234,015 $57,880,617 $59,299,014 $61,390,504 Debt Margin as a Percentage of Debt Limit 71.95°/o 72.70% 75.04% 77.98% Unvoted Debt Net Assessed Valuation $810,566,220 $758,284,500 $752,562,040 $749,814,320 Legal Debt Limitation(%) (1) 5.50% 5.50% 5.50% 5.50% Legal Debt Limitation($) (1) 44,581,142 41,705,648 41,390,912 41,239,788 City Debt Outstanding(2) 23,875,438 21,739,256 19,720,000 17,340,000 Less: Applicable Debt Service Fund Amounts 0 0 0 0 Net Indebtedness Subject to Limitation(2) 23,875,438 21,739,256 19,720,000 17,340,000 Overall Legal Debt Margin $20,705,704 $19,966,392 $21,670,912 $23,899,788 (1) Direct Debt Limitation based upon Section 133,The Uniform Bond Act of the Ohio Revised Code. (2) Ciry Debt Outstanding includes Non Self-Supporting General Obligation Bonds and Notes only. Enterprise Debt is not considered in the computarion of the Legal Debt Margin. Source: City Records (continued) - 542 - CITY OF HAMILTON, OHIO Debt Limitations Last Ten Years Tax Year 2017 2018 2019 Total Debt Net Assessed Valuation $794,964,840 $793,855,500 $805,104,510 Legal Debt Limitarion(%)(1) 10.50% 10.50% 10.50% Legal Debt Limitation($)(1) 83,471,308 83,354,828 84,535,974 City Debt Outstanding(2) 3,185,000 14,090,000 13,440,000 Less: Applicable Debt Service Fund Amounts 0 0 0 Net Indebtedness Subject to Limitation(2) 3,185,000 14,090,000 13,440,000 Overall Legal Debt Margin $80,286,308 $69,264,828 $71,095,974 Debt Margin as a Percentage of Debt Limit 96.18% 83.10°/o 84.10% Unvoted Debt Net Assessed Valuation $794,964,840 $793,855,500 $805,104,510 Legal Debt Limitation(%)(1) 5.50% 5.50% 5.50% Legal Debt Limitarion($)(1) 43,723,066 43,662,053 44,280,748 City Debt Outstanding(2) 3,185,000 14,090,000 13,440,000 Less: Applicable Debt Service Fund Amounts 0 0 0 Net Indebtedness Subject to Limitation(2) 3,185,000 14,090,000 13,440,000 Overall Legal Debt Margin $40,538,066 $29,572,053 $30,840,748 (continued) - 543 - CITY OF HAMILTON, OHIO Debt Limitations Last Ten Years Tax Year 2020 2021 2022 Total Debt Net Assessed Valuation $935,440,290 $942,098,790 $971,829,910 Legal Debt Limitarion(%)(1) 10.50% 10.50% 10.50% Legal Debt Limitation($)(1) 98,221,230 98,920,373 102,042,141 City Debt Outstanding(2) 15,165,000 14,480,000 13,950,000 Less: Applicable Debt Service Fund Amounts 0 0 0 Net Indebtedness Subject to Limitation(2) 15,165,000 14,480,000 13,950,000 Overall Legal Debt Margin $83,056,230 $84,440,373 $88,092,141 Debt Margin as a Percentage of Debt Limit 84.56% 8536°/o 8633% Unvoted Debt Net Assessed Valuation $935,440,290 $942,098,790 $971,829,910 Legal Debt Limitation(%)(1) 5.50% 5.50% 5.50% Legal Debt Limitarion($)(1) 51,449,216 51,815,433 53,450,645 City Debt Outstanding(2) 15,165,000 14,480,000 13,950,000 Less: Applicable Debt Service Fund Amounts 0 0 0 Net Indebtedness Subject to Limitation(2) 15,165,000 14,480,000 13,950,000 Overall Legal Debt Margin $36,284,216 $37,335,433 $39,500,645 - 544- CITY OF HAMILTON, OHIO Pledged Revenue Coverage Last Ten Years 2013 2014 2015 2016 Water System Revenue Bonds Gross Revenues (1) $14,656,915 $14,965,626 $12,602,429 $13,130,285 Direct Operating Expenses (2) 10,505,666 9,477,829 9,364,217 10,137,417 Net Revenue Available for Debt Service 4,151,249 5,487,797 3,238,212 2,992,868 Annual Debt Service Requirement 2,320,492 2,314,717 2,316,840 2,064,721 Coverage(3) 1.79 2.37 1.40 1.45 Wastewater System Revenue Bonds Gross Revenues (1) $14,684,679 $12,375,483 $11,950,092 $12,470,466 Direct Operating Expenses (2) 7,068,795 6,582,215 6,816,788 7,155,147 Net Revenue Available for Debt Service 7,615,884 5,793,268 5,133,304 5,315,319 Annual Debt Service Requirement 4,901,071 4,852,095 4,844,370 4,846,320 Coverage(3) 1.55 1.19 1.06 1.10 Gas System Revenue Bonds Gross Revenues (1) $24,746,065 $29,488,952 $22,013,427 $19,117,737 Direct Operating Expenses (2) 22,596,575 28,900,507 19,446,910 17,472,300 Net Revenue Available for Debt Service 2,149,490 588,445 2,566,517 1,645,437 Annual Debt Service Requirement 1,669,237 1,669,738 1,670,375 432,925 Coverage(3) 1.29 035 1.54 3.80 Electric System Revenue Bonds Gross Revenues (1) $60,360,176 $62,073,277 $64,722,757 $66,451,995 Direct Operating Expenses (2) 42,282,539 48,620,592 46,586,253 62,051,190 Net Revenue Available for Debt Service 18,077,637 13,452,685 18,136,504 4,400,805 Annual Debt Service Requirement 14,837,797 15,373,471 15,301,2ll 2,470,584 Coverage(3) 1.22 0.88 1.19 1.78 Special Assessment Bonds Special Assessment Collections $499,689 $484,900 $417,716 $342,130 Debt Service Principal 135,000 140,000 150,000 145,000 Interest 65,498 58,523 51,078 43,020 Coverage 2.49 2.44 2.08 1.82 (1) Gross revenues include operating revenues plus interest income. (2) Direct operaring expenses include operaring expenses less depreciation. (3) Coverage ratios based on GAAP basis figures.Under the terms of the revenue bond indentures,coverage ratios are calculated using Non-GAAP basis figures. Source: Ciry Records (continued) - 545 - CITY OF HAMILTON, OHIO Pledged Revenue Coverage Last Ten Years 2017 2018 2019 2020 Water System Revenue Bonds Gross Revenues (1) $13,483,093 $14,070,659 $14,877,288 $14,583,444 Direct Operating Expenses (2) 11,317,676 10,307,917 11,962,646 12,196,520 Net Revenue Available for Debt Service 2,165,417 3,762,742 2,914,642 2,386,924 Annual Debt Service Requirement 2,064,373 1,964,902 2,202,199 2,046,015 Coverage(3) 1.05 1.91 1.32 1.17 Wastewater System Revenue Bonds Gross Revenues (1) $12,541,901 $12,966,268 $13,698,367 $13,390,424 Direct Operating Expenses (2) 8,054,016 7,950,546 8,824,466 9,376,304 Net Revenue Available for Debt Service 4,487,885 5,015,722 4,873,901 4,014,120 Annual Debt Service Requirement 3,991,788 3,334,502 3,853,762 3,448,133 Coverage(3) 1.12 1.50 1.26 1.16 Gas System Revenue Bonds Gross Revenues (1) $18,531,047 $21,879,539 $21,304,490 $17,982,935 Direct Operating Expenses (2) 17,472,987 20,149,213 18,711,023 16,729,845 Net Revenue Available for Debt Service 1,058,060 1,730,326 2,593,467 1,253,090 Annual Debt Service Requirement 184,071 653,671 773,133 773,414 Coverage(3) 5.75 2.65 335 1.62 Electric System Revenue Bonds Gross Revenues (1) $71,035,797 $80,569,387 $82,553,789 $81,042,173 Direct Operating Expenses (2) 75,464,636 75,820,874 74,502,740 75,849,959 Net Revenue Available for Debt Service (4,428,839) 4,748,513 8,051,049 5,192,214 Annual Debt Service Requirement 2,482,759 2,549,893 2,457,340 2,592,672 Coverage(3) (1.78) 1.86 3.28 2.00 Special Assessment Bonds Special Assessment Collections $345,325 $234,082 $326,617 $308,315 Debt Service Principal 155,000 165,000 95,000 100,000 Interest 35,153 22,975 17,750 12,175 Coverage 1.82 1.25 2.90 2.75 (continued) - 546 - CITY OF HAMILTON, OHIO Pledged Revenue Coverage Last Ten Years 2021 2022 Water System Revenue Bonds Gross Revenues (1) $14,251,861 $14,839,991 Direct Operating Expenses (2) 9,077,783 10,852,376 Net Revenue Available for Debt Service 5,174,078 3,987,615 Annual Debt Service Requirement 2,053,313 2,052,688 Coverage(3) 2.52 1.94 Wastewater System Revenue Bonds Gross Revenues (1) $12,901,120 $12,736,543 Direct Operating Expenses (2) 6,262,619 7,904,401 Net Revenue Available for Debt Service 6,638,501 4,832,142 Annual Debt Service Requirement 3,453,050 3,446,551 Coverage(3) 1.92 1.40 Gas System Revenue Bonds Gross Revenues (1) $18,088,032 $19,168,945 Direct Operating Expenses (2) 15,450,558 17,828,255 Net Revenue Available for Debt Service 2,637,474 1,340,690 Annual Debt Service Requirement 773,981 774,135 Coverage(3) 3.41 1.73 Electric System Revenue Bonds Gross Revenues (1) $85,337,028 $85,755,058 Direct Operating Expenses (2) 62,587,101 69,989,852 Net Revenue Available for Debt Service 22,749,927 15,765,206 Annual Debt Service Requirement 2,769,300 2,755,300 Coverage(3) 8.22 5.72 Special Assessment Bonds Special Assessment Collections $391,494 $336,645 Debt Service Principal 80,000 15,000 Interest 6,300 1,575 Coverage 4.54 20.31 - 547 - CITY OF HAMILTON, OHIO Demographic and Economic Statistics Last Ten Years Calendar Year 2013 2014 2015 2016 Population (1) City of Hamilton 62,477 62,258 62,486 62,359 Butler County 368,130 371,272 374,158 372,538 Income (2) (a) Total Personal (in thousands) 14,468,982 14,592,475 15,294,831 15,631,343 Per Capita 39,304 39,304 40,878 41,534 Unemployment Rate (3) Federal 7.4% 6.2% 5.3% 4.9% State 7.4% 5.6% 4.6% 4.7% Butler County 6.9% 4.9% 4.2% 4.1% Civilian Work Force Estimates (3) State 5,766,000 5,737,000 5,703,400 5,673,900 Butler County 190,500 191,100 186,900 187,900 Sources: (1) US Bureau of Census of Population (2) US Department of Commerce,Bureau of Economic Analysis (a)Per Capita Income is only available for the County. Total Personal Income is presented far the County. US Department of Commerce,Bureau of Economic Analysis information is only available through 2021,far the presentation of 2021 and 2022 statistics,the City is using the latest information available. (3) State Department of Labor Starisrics (continued) - 548 - CITY OF HAMILTON, OHIO Demographic and Economic Statistics Last Ten Years Calendar Year 2017 2018 2019 2020 Population (1) City of Hamilton 62,127 62,092 62,174 62,182 Butler County 380,604 382,378 383,134 384,268 Income (2) (a) Total Personal (in thousands) 15,680,621 16,197,532 16,229,556 18,217,377 Per Capita 42,620 42,360 42,360 47,408 Unemployment Rate (3) Federal 4.4% 3.8% 3.5% 6.0% State 5.0% 4.5% 4.1% 5.6% Butler County 4.4% 3.7% 33% 4.9% Civilian Work Force Estimates (3) State 5,849,603 5,416,810 5,574,900 5,706,400 Butler County 190,208 153,227 188,200 192,400 (continued) - 549 - CITY OF HAMILTON, OHIO Demographic and Economic Statistics Last Ten Years Calendar Year 2021 2022 Population (1) City of Hamilton 63,399 63,127 Butler County 390,357 390,234 Income (2) (a) Total Personal (in thousands) 18,371,762 20,525,528 Per Capita 47,064 52,598 Unemployment Rate (3) Federal 3.8% 3.5% State 43% 4.1% Butler County 4.7% 3.1% Civilian Work Force Estimates (3) State 5,743,600 5,738,700 Butler County 141,966 199,200 - 550 - CITY OF HAMILTON, OHIO Principal Employers Current Year and Nine Years Ago 2022 Number of Employer Nature of Business Employees Rank Butler County Government 1,500 1 Hamilton City School District Education 1,227 2 Fort Hamilton Hospital Health Care 945 3 Communiry First Solutions (HQ) Health Care 650 4 City of Hamilton Government 620 5 ThyssenKrupp Bilstein of America(HQ) Manufacturing 600 6 Miami University-Hamilton Education 400 7 Vinylmax Manufacturing 300 8 Bethesda Butler Hospital(TriHealth) Health Care 245 9 Valeo Climate Control Manufacturing 235 10 Total 6,722 Total Employment within the City(1) N/A 2013 Number of Employer Nature of Business Employees Rank Butler County Government 1,750 1 Hamilton City School District Education 1,095 2 Fort Hamilton Hospital Health Care 1,020 3 City of Hamilton Government 680 4 Community First Health Care 650 5 Miami University-Hamilton Education 370 6 ThyssenKrupp Bilstein of America Manufacturing 350 7 Meijer Retail 325 8 The Kroger Company Retail 250 9 First Financial Bank Financial 230 10 Total 6,720 Total Employment within the City(1) N/A (1) -Total employment within the City is not available. Source: City Records - S51 - CITY OF HAMILTON, OHIO Full Time Equivalent Employees by Function Last Ten Years 2013 2014 2015 2016 2017 Governmental Activities General Government City Administration 23.00 23.75 16.50 19.00 19.00 Engineering 6.00 7.00 4.00 5.00 5.00 Municipal Court 30.75 27.50 27.00 27.50 28.50 Information Technology 6.00 6.00 5.00 14.00 14.00 Finance 34.50 33.25 29.00 28.50 24.75 Security of Persons and Property Police 121.75 118.00 121.25 124.00 136.00 Fire 95.00 97.00 96.25 98.50 107.00 Public Health and Welfare Services Health 11.50 13.25 15.50 15.75 14.75 Leisure Time Activities Parks and Recreation 17.50 17.75 15.00 14.50 14.50 Community Environment Planning and Zoning 15.00 15.00 16.50 16.75 13.75 Transportation Street 60.00 60.00 56.25 57.25 53.00 Business-Type Activities Utilities Gas 30.00 28.00 26.00 27.00 22.75 Electric 105.00 111.50 96.75 103.00 99.00 Water 30.00 25.00 30.25 31.75 36.00 Wastewater 16.00 14.00 26.00 25.75 25.50 Utility Customer Service 25.00 17.00 19.00 18.00 16.00 Total Employees 627.00 614.00 600.25 626.25 629.50 Method: 1.00 for each full-time,0.50 for each part-time and 0.25 for each seasonal employee Source: City Records (continued) - 552 - CITY OF HAMILTON, OHIO Full Time Equivalent Employees by Function Last Ten Years 2018 2019 2020 2021 2022 Governmental Activities General Government City Administration 19.50 23.00 23.54 24.54 26.54 Engineering 5.00 5.00 5.00 5.00 5.00 Municipal Court 28.00 29.50 31.00 30.00 29.50 Information Technology 14.25 12.25 10.25 9.25 10.25 Finance 22.25 18.00 15.25 15.25 14.25 Security of Persons and Property Police 133.00 136.00 133.33 132.33 134.83 Fire 105.00 105.00 102.83 103.33 10733 Public Health and Welfare Services Health 13.00 12.00 1030 8.05 6.25 Leisure Time Activities Parks and Recreation 13.00 11.75 14.40 14.90 19.50 Community Environment Planning and Zoning 13.50 8.50 7.90 8.40 9.40 Transportation Street 56.00 66.75 57.20 54.70 5930 Business-Type Activities Utilities Gas 26.50 27.50 27.00 26.05 27.75 Electric 102.50 100.25 96.40 91.15 93.85 Water 35.00 38.50 38.98 37.73 39.53 Wastewater 24.00 31.00 29.12 27.82 32.22 Utility Customer Service 17.00 16.00 15.00 17.00 18.00 Total Employees 627.50 641.00 617.50 605.50 633.50 - 553 - CITY OF HAMILTON, OHIO Operating Indicators by Function Last Ten Years 2013 2014 2015 2016 Governmental Activities General Government Licenses and Permits Building Permits Issued-Residential 299 354 318 400 Building Permits Issued- Commercial 340 282 325 368 Security of Persons and Property Police Misdemeanor Arrests 3,159 6,237 6,025 5,488 Felony Arrests 1,519 773 637 754 Traffic Citations Issued 4,315 4,253 4,698 5,058 Parking Tickets Written 2,710 2,437 2,107 2,195 Fire/Emergency Medical Services Number of Calls Answered 11,657 12,157 12,724 12,967 Number of Inspections 295 520 980 96 Number of Emergency Medical Calls 9,239 9,700 10,208 10,337 Transportation Street Street Resurfacing(Center Line miles) 3.49 1.82 3.56 1.12 Parking Parking Levels 5.00 5.00 5.00 5.00 Parking Spaces 550 550 550 550 Average Daily Cars Parked N/A N/A N/A N/A Parking/Meters -On Street and Lots 753 656 524 524 Public Works Refuse Collection Refuse Collected(tons) 23,227 23,232 23,190 23,282 Recyclables Collected(tons) 2,728 2,697 2,644 2,660 Leisure Time Activities Parks and Recreation Athletic Field Permits Issued* 75 132 N/A N/A Public Health and Welfare Services Health Care Number of Patient Beds 274 209 296 320 *Beginning in 2015,athletic field permits are issued by the Hamilton Parks Conservancy. (continued) - 554 - CITY OF HAMILTON, OHIO Operating Indicators by Function Last Ten Years 2017 2018 2019 Governmental Activities General Government Licenses and Permits Building Permits Issued-Residential 349 385 479 Building Permits Issued-Commercial 411 346 162 Security of Persons and Property Police Misdemeanor Arrests 6,462 6,546 6,613 Felony Arrests 892 791 777 Traffic Citations Issued 4,934 4,952 4,838 Parking Tickets Written 900 1,161 4,310 Fire/Emergency Medical Services Number of Calls Answered 14,482 14,254 14,412 Number of Inspections 478 565 1,220 Number of Emergency Medical Calls 13,002 12,161 12,693 Transportation Street Street Resurfacing(Center Line miles) 3.54 2.83 432 Parking Parking Levels 5.00 5.00 5.00 Parking Spaces 550 550 550 Average Daily Cars Parked N/A N/A N/A Parking/Meters - On Street and Lots 445 538 538 Public Works Refuse Collection Refuse Collected(tons) 23,907 24,278 24,822 Recyclables Collected(tons) 2,645 2,536 2,296 Leisure Time Activities Parks and Recreation Athletic Field Permits Issued* N/A N/A N/A Public Health and Welfare Services Health Care Number of Patient Beds 358 257 241 (continued) - 555 - CITY OF HAMILTON, OHIO Operating Indicators by Function Last Ten Years 2020 2021 2022 Governmental Activities General Government Licenses and Permits Building Permits Issued-Residential 528 528 515 Building Permits Issued- Commercial 233 302 300 Security of Persons and Property Police Misdemeanor Arrests 5,992 3,692 3,177 Felony Arrests 982 591 557 Traffic Citations Issued 3,450 3,433 3,715 Parking Tickets Written 2,633 3,798 4,042 Fire/Emergency Medical Services Number of Calls Answered 13,744 14,468 14,400 Number of Inspections 497 686 850 Number of Emergency Medical Calls 11,825 11,260 12,000 Transportation Street Street Resurfacing(Center Line miles) 4.61 2.19 6.30 Parking Parking Levels 5.00 5.00 5.00 Parking Spaces 550 550 550 Average Daily Cars Parked N/A N/A N/A Parking/Meters -On Street and Lots 400 486 444 Public Works Refuse Collection Refuse Collected(tons) 27,221 27,706 26,499 Recyclables Collected(tons) 2,587 2,520 2,340 Leisure Time Activities Parks and Recreation Athletic Field Permits Issued* N/A N/A N/A Public Health and Welfare Services Health Care Number of Patient Beds 268 182 190 (continued) - 556 - CITY OF HAMILTON, OHIO Operating Indicators by Function Last Ten Years 2013 2014 2015 2016 Business-Type Activities Gas Average Daily Consumption(100 cubic feet) 9,969 10,243 6,794 6,505 Peak Daily Consumption(100 cubic feet) 27,136 33,759 32,152 25,089 Electric Peak Demand(MW) 140 133 143 145 Energy Requirement(MWh) 619,273 613,779 614,023 604,727 Total System Sales (MWh) 566,426 594,699 561,624 571,211 Total Residential Customers 26,099 26,127 26,347 26,379 Total Commercial Customers 2,922 2,915 2,908 2,895 Water New Service Connections 25 23 23 30 Water Main Breaks 117 83 83 72 Average Daily Consumption(thousands of gallons) 15,458 14,490 14,490 15,222 Peak Daily Consumption(thousands of gallons) 20,323 18,204 18,204 22,215 Wastewater Average Daily Sewage Treatment(millions of gallons) 8.4 8.9 8.9 8.5 Source: City Records N/A=Informarion Not Available (continued) - 557 - CITY OF HAMILTON, OHIO Operating Indicators by Function Last Ten Years 2017 2018 2019 Business-Type Activities Gas Average Daily Consumption(100 cubic feet) 6,861 7,549 7,349 Peak Daily Consumption(100 cubic feet) 26,769 28,170 32,496 Electric Peak Demand(MW) 135 132 124 Energy Requirement(MWh) 585,366 610,054 599,026 Total System Sales (MWh) 552,949 583,686 565,567 Total Residential Customers 26,783 26,400 26,528 Total Commercial Customers 2,886 2,887 2,908 Water New Service Connections 84 76 124 Water Main Breaks 42 73 43 Average Daily Consumption(thousands of gallons) 14,766 11,792 16,452 Peak Daily Consumption(thousands of gallons) 19,491 22,331 21,386 Wastewater Average Daily Sewage Treatment(millions of gallons 9.0 10.8 10.4 (continued) - 558 - CITY OF HAMILTON, OHIO Operating Indicators by Function Last Ten Years 2020 2021 2022 Business-Type Activities Gas Average Daily Consumption(100 cubic feet) 6,709 7,221 7,393 Peak Daily Consumption(100 cubic feet) 23,495 23,770 32,139 Electric Peak Demand(MW) 132 136 135 Energy Requirement(MWh) 573,848 594,261 629,796 Total System Sales (MWh) 547,178 562,007 590,473 Total Residential Customers 26,583 26,654 26,707 Total Commercial Customers 2,908 2,928 2,894 Water New Service Connections 83 77 90 Water Main Breaks 38 76 68 Average Daily Consumption(thousands of gallons) 15,560 15,034 15,548 Peak Daily Consumption(thousands of gallons) 24,823 19,477 19,803 Wastewater Average Daily Sewage Treatment(millions of gallons 9.2 7.7 9.7 - 559 - CITY OF HAMILTON, OHIO Capital Asset Statistics by Function Last Ten Years 2013 2014 2015 2016 Governmental Activities General Government Public Land and Buildings Land(Square Miles) 21.68 21.68 21.68 21.68 Security of Persons and Property Police Stations 1 1 1 1 Patrol Cruisers 40 40 40 49 Fire/Emergency Medical Services Stations 5 5 5 5 Transportation Street Streets (lane miles) 254.21 254.21 254.21 254.21 Street Lights 7,028 7,029 9,043 9,043 Traffic Signals 96 95 95 95 Parking Off street Parking Garages 1 1 1 1 Leisure Time Activities Parks and Recreation Parks 54 54 54 36 Park Area(acres) 1,308 1,308 1,308 1,308 Playgrounds 24 24 24 24 Ball Fields Lighted 9 9 9 10 Unlighted 34 34 34 34 Tennis Courts Lighted 2 2 2 1 Unlighted 6 6 6 3 Swimming Pools 1 1 1 1 Splash Pads 3 3 5 Golf Courses 2 2 2 2 Skateboard Park 1 1 1 1 Community Environment Libraries 1 1 1 1 Public Health and Welfare Hospitals 2 2 2 2 (continued) - 560 - CITY OF HAMILTON, OHIO Capital Asset Statistics by Function Last Ten Years 2017 2018 2019 2020 Governmental Activities General Government Public Land and Buildings Land(Square Miles) 21.68 21.68 21.68 21.68 Security of Persons and Property Police Stations 1 1 1 1 Patrol Cruisers 60 60 60 60 Fire/Emergency Medical Services Stations 5 5 5 5 Transportation Street Streets (lane miles) 254.21 254.21 254.21 254.21 Street Lights 9,050 9,051 9,051 9,051 Traffic Signals 92 94 94 97 Parking Off street Parking Garages 1 1 1 1 Leisure Time Activities Parks and Recreation Parks 44 47 47 46 Park Area(acres) 1,315 1,261 1,261 1,261 Playgrounds 23 26 26 26 Ball Fields Lighted 9 9 9 9 Unlighted 34 34 34 34 Tennis Courts Lighted 1 1 1 1 Unlighted 5 5 5 6 Swimming Pools 1 1 1 1 Splash Pads 8 8 8 8 Golf Courses 2 2 2 2 Skateboard Park 1 1 1 1 Community Environment Libraries 1 1 1 1 Public Health and Welfare Hospitals 2 2 2 2 (continued) - 561 - CITY OF HAMILTON, OHIO Capital Asset Statistics by Function Last Ten Years 2021 2022 Governmental Activities General Government Public Land and Buildings Land(Square Miles) 21.68 21.68 Security of Persons and Property Police Stations 1 1 Patrol Cruisers 60 60 Fire/Emergency Medical Services Stations 5 5 Transportation Street Streets (lane miles) 254.21 254.21 Street Lights 9,603 9,413 Traffic Signals 97 100 Parking Off street Parking Garages 1 1 Leisure Time Activities Parks and Recreation Parks 46 46 Park Area(acres) 1,261 1,261 Playgrounds 26 26 Ball Fields Lighted 9 9 Unlighted 34 34 Tennis Courts Lighted 1 1 Unlighted 6 6 Swimming Pools 1 1 Splash Pads 8 8 Golf Courses 2 2 Skateboard Park 1 1 Community Environment Libraries 1 1 Public Health and Welfare Hospitals 2 2 (continued) - 562 - CITY OF HAMILTON, OHIO Capital Asset Statistics by Function Last Ten Years 2013 2014 2015 2016 Business-Type Activities Utilities Water Purification Plants 2 2 2 2 Maximum Capacity(millions of gallons) 46 46 46 46 Waterlines (Miles) 345.0 340.1 340.1 340.1 Wastewater Treatment Plants 1 1 1 1 Maximum Capacity(millions of gallons) 32 32 32 32 Sanitary Sewerlines (Miles) 253.0 253.0 253.0 253.0 Storm Drains (Miles) 188.2 188.2 188.2 188.2 Source: City Records (continued) - 563 - CITY OF HAMILTON, OHIO Capital Asset Statistics by Function Last Ten Years 2017 2018 2019 2020 Business-Type Activities Utilities Water Purification Plants 2 2 2 2 Maximum Capacity(millions of gallons) 46 46 46 46 Waterlines (Miles) 340.1 340.1 340.1 340.1 Wastewater Treatment Plants 1 1 1 1 Maximum Capacity(millions of gallons) 32 32 32 32 Sanitary Sewerlines (Miles) 253.0 253.0 253.0 253.0 Storm Drains (Miles) 188.2 188.2 188.2 188.2 (continued) - 564 - CITY OF HAMILTON, OHIO Capital Asset Statistics by Function Last Ten Years 2021 2022 Business-Type Activities Utilities Water Purification Plants 2 2 Maximum Capacity(millions of gallons) 46 46 Waterlines (Miles) 340.1 3401 Wastewater Treatment Plants 1 1 Maximum Capacity(millions of gallons) 32 32 Sanitary Sewerlines (Miles) 253.0 253.0 Storm Drains (Miles) 188.2 188.2 - 565 - CITY OF HAMILTON, OHIO ,__::c;:•�i , �.::- �_'�,,� ..:..�:- � � , . : �� r:: :: � � � �.- -r . ,� ��s`� _ S66 _