HomeMy WebLinkAboutCity of Napoleon - Public Financial Report CITY OF NAPOLEON, OHIO
Henry County, Ohio
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2022
CITY OF NAPOLEON, OHIO
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CITY OF NAPOLEON, OHIO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2022
Prepared by the Finance Department
Kevin Garringer
Director of Finance
CITY OF NAPOLEON, OHIO
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CITY OF NAPOLEON, OHIO
TABLE OF CONTENTS
CITY OF NAPOLEON
HENRY COUNTY, OHIO
I� INTRODUCTORY SECTION
A Letter of Transmittal...........................................................................................v
B List of Principal Officials..................................................................................xv
C City Organizational Chart................................................................................ xvi
D Certificate of Achievement for Excellence in Financial Reporting................xvii
I I FINANCIAL SECTION
A Independent Auditor's Report............................................................................. 1
B Management's Discussion and Analysis ............................................................5
C Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position.................................................................................... 18
Statement of Activities ........................................................................................20
Fund Financial Statements:
Governmental Funds:
BalanceSheet ......................................................................................................22
Reconciliation of Total Governmental Fund Balances to Net Position of
Governmental Activities......................................................................................24
Statement of Revenues, Expenditures and Changes in Fund Balances ...............26
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances to the Statement of Activities..................................................28
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual(Non-GAAP Budgetary Basis):
GeneralFund .................................................................................................. 31
Proprietary Funds:
Statement of Net Position.................................................................................... 32
Statement of Revenues, Expenses and Changes in Fund Net Position................36
Statement of Cash Flows..................................................................................... 38
Fiduciary Funds:
Statement of Net Position....................................................................................42
Statement of Changes in Net Position.................................................................43
Notes to the Basic Financial Statements...................................................................44
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CITY OF NAPOLEON, OHIO
D Required Supplementary Information:
Schedule of City's Proportionate Share of the Net
PensionLiability................................................................................................ 122
Schedule of City Pension Contributions............................................................ 124
Schedule of City's Proportionate Share of the Net Other
Postemployment Benefits (OPEB) Liability...................................................... 126
Schedule of City's Other Postemployment Benefit(OPEB) Contributions...... 128
Notes to the Required Supplementary Information................................................ 130
E Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Financial Statements:
Combining Balance Sheet.................................................................................. 140
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances............................................................................................................. 141
Combining Balance Sheet—Nonmajor Special Revenue Funds....................... 142
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances—Nonmajor Special Revenue Funds.................................................. 148
Combining Balance Sheet—Nonmajor Debt Service Funds............................. 154
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances—Nonmajor Debt Service Funds........................................................ 155
Combining Balance Sheet—Nonmajor Capital Projects Funds ........................ 156
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances—Nonmajor Capital Projects Funds.................................................... 157
Individual Schedules of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual(Non-GAAP Budgetary Basis):
Major Governmental Funds:
GeneralFund................................................................................................ 158
Debt Ser-vice Fund:
Special Assessment Bond Retirement Fund.............................................. 162
Capital Projects Fund:
Capital Improvement Fund........................................................................ 163
AquaticCenter Fund ................................................................................. 164
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CITY OF NAPOLEON, OHIO
Nonmajor Governmental Funds:
Special Revenue Funds:
Street Construction, Maintenance and Repair Fund.................................. 165
State Highway Improvement Fund............................................................ 166
Motor Vehicle License Tax Fund.............................................................. 167
EMS Transport Service Fund.................................................................... 168
RecreationFund........................................................................................ 169
American Rescue Plan Fund..................................................................... 171
Shelter House Facility Repair Fund .......................................................... 172
Hotel/Motel Tax Fund............................................................................... 173
Fire Loss Claims Fund .............................................................................. 174
Community Development Block Grant(CDBG)Income Fund................ 175
Indigent Drivers Alcohol Treatment Fund................................................ 176
Law Enforcement and Education Fund..................................................... 177
Court Computerization Fund..................................................................... 178
Law Enforcement Trust Fund.................................................................... 179
Mandatory Drug Fine Fund....................................................................... 180
FireEquipment Fund................................................................................. 181
Municipal Probation Service Fund............................................................ 182
Probation Officer Grant Fund.................................................................... 183
Court Improvement Fund.......................................................................... 184
Handicap Parking Fines Fund................................................................... .185
PolicePension Fund.................................................................................. 186
FirePension Fund...................................................................................... 187
CemeteryFund.......................................................................................... 188
Justice Reinvestment Incentive Grant Fund.............................................. 189
Certified Police Training Fund.................................................................. 190
Indigent Drivers Interlock/Alcohol Fund.................................................. 191
OneOhio Fund.......................................................................................... 192
Debt Service Fund:
General Bond Retirement Fund................................................................. 193
Oakwood/American TIF Fund.................................................................. 194
Capital Projects Funds:
Capital Improvement Project(CIP)Funding Reserve Fund...................... 195
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CITY OF NAPOLEON, OHIO
I y y STATISTICAL SECTION
Net position by Component-Last Ten Years.............................................................................. S 2
Changes in Net position-Last Ten Years.................................................................................... S 4
Fund Balances, Governmental Funds -Last Ten Years............................................................... S 8
Changes in Fund Balances, Governmental Funds -Last Ten Years .......................................... S 10
Income Tax Revenues by Source, Governmental Funds -Last Ten Years................................ S 14
Income Tax Collections - Current Year and Nine Years Ago.................................................... S 17
Ratio of Outstanding Debt By Type - Last Ten Years............................................................... S 18
Ratios of General Bonded Debt Outstanding-Last Ten Years.................................................. S 20
Computation of Direct and Overlapping Debt Attributable to
Governmental Activities - Current Year.................................................................................... S 23
Debt Limitations -Last Ten Years............................................................................................. S 24
Pledged Revenue Coverage-Last Ten Years............................................................................ S 26
Demographic and Economic Statistics -Last Ten Years........................................................... S 28
Principal Employers - Current Year and Nine Years Ago ......................................................... S 31
Full Time Equivalent Employees by Function -Last Ten Years............................................... S 32
Operating Indicators by Function- Last Ten Years................................................................... S 34
Capital Asset Statistics by Function - Last Ten Years ............................................................... S 36
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INTR OD UCTOR Y SECTION
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CITY OF NAPOLEON, OHIO
�u v1 > 255 West Riverview Avenue, PO Box 151• Napoleon,Ohio 43545-0151
Kevin Garringer,Director of Finance
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Nap�ile0n E-maiL• k�arringer(�a,napoleonohio.com
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June 24,2023
Introduction
To the Honorable Mayor,the City Council and the Citizens of the City of Napoleon, Ohio:
We are pleased to present the twenty-seventh(27th)Annual Comprehensive Financial Report(ACFR) of
the City of Napoleon, Ohio (City), for the year ended December 31, 2022. The report has been prepared
in accordance with Generally Accepted Accounting Principles (GAAP) established by statements of the
Governmental Accounting Standards Board (GASB), other authoritative pronouncements and guidelines
recommended by the Government Finance Officers Association (GFOA) of the United States and Canada
and audited in accordance with Government Auditing Standards (GAS). GAAP requires a narrative
introduction, overview, and analysis called the Management's Discussion and Analysis (MD&A), to
accompany the basic financial statements and notes. This Letter of Transmittal (LOT) is designed to
complement the MD&A and should be read in conjunction with it. The City's MD&A can be found
immediately following the report of the independent auditors.
The Report
State law, along with Administrative Rules of the Auditor of State, requires all City governments to
publish an Annual Report within 150 days of the close of each fiscal year. This report must present a
complete set of financial statements presented in conformity with GAAP. This Annual Report for 2022
was filed with the Auditor of State on or before, May 31, 2023. Various City debt service Ti�ust
Agreements require Audited Annual Reports in accordance with GAS. Pursuant to these requirements,
we hereby issue the ACFR of the City for the fiscal year ended December 31, 2022.
While there is no legal requirement for the preparation of an ACFR, it represents a commitment by the
City, and its officers, to conform to nationally recognized standards of excellence in financial reporting.
This report consists of management's representations concerning the finances of the City. Responsibility
for both the accuracy of the presented data and the completeness and reliability of the presentation,
including all disclosures,rests with City management.
City management has established various internal controls designed to compile reliable information for
the preparation of the Annual Financial Statements in conformity with GAAP. The City's internal
controls are designed to provide reasonable rather than absolute assurance that the financial statements
will be free from material misstatement. We believe the data, as presented, is accurate in all material
respects; that it is presented in a manner designed to fairly set forth the financial position and results of
operations of the City; and, that all disclosures necessary to enable the reader to gain an understanding of
the City's financial activity have been presented.
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CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
The City's financial statements have been audited by BHM CPA Group Inc., Piketon, Ohio, an
Independent Public Accountant (IPA) working as a contracted agent for the Auditor of State Office of
Ohio (AOS), Keith Faber. The IPA issued an unmodified opinion that the basic financial statements are
presented fairly in confarmity with GAAP, in all material respects, representing the financial position of
the City as of December 31, 2022. The report from the IPA is presented as the first component of the
financial section of this report.
PROFILE OF THE CITY OF NAPOLEON
The first documented dwelling in Napoleon was a log cabin built in 1832. The town of Napoleon was
founded in 1835 and later was made the county seat of Henry County. The name of "Napoleon" was
given to the township by a group of Frenchmen who inhabited the area at that time. Local citizens
adopted the name, and the town was officially incorparated as the Village of Napoleon in 1863. In 1950
the Village of Napoleon officially became the "City of Napoleon"as the population exceeded 5,000. The
2022 census is 8,762. The City is located on the Maumee River, and is about 40 miles southwest of
Toledo, Ohio, 50 miles north of Lima, Ohio, 65 miles east of Fort Wayne, Indiana, 110 miles southwest
of Detroit, Michigan, and 130 miles west of Cleveland, Ohio.
Two national highways US-6, and US-24 a four-lane limited access highway running east and west,
bypass on the north edge of the City. Two state routes run north and south, SR-108 runs through the City,
and SR-109 is outside the City 3 miles east. Entrances to the Ohio Turnpike, Interstate I-80/90 are
located 12 miles north of the City, one off SR-108 and one off SR-109. Interstate I-75 is 25 miles east
of the City crossing US-6. The City has a limited rail service running through the City provided by
Defiance & Western Railway with connections to CSXT and Norfolk and Southern to the west in
Defiance, Ohio. Main lines of CSXT and Norfolk and Southern run east and west through southern
Henry County, and north and south lines of Canadian National Railroad are to the east in Wood County.
Amtrak service is available in Bryan and Toledo, Ohio, and Fort Wayne, Indiana. Toledo Express Airport
is located about 30 miles to the northeast in Lucas County and provides passenger and freight air services.
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CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
Form of Government
The Citizens of Napoleon, who were determined to exercise "Home Rule" authority, voted to become a
Chartered Ciry, as allowed by the State Constitution of Ohio, effective January 1, 1952. The City Charter
has been amended several times since the first effective charter in 1952. The City Charter stipulates a
charter review to be done every eight (8) years. In 2016, the City Charter underwent a full review by an
appointed Charter Review Commission. The Commission recommended various changes to the Charter
to be voted on by the Citizens of Napoleon. City Council agreed and placed these proposed changes
before its Citizens for a vote on November 8, 2016; all proposed changes were passed with an effective
date of January 1, 2018. The next Charter Review Commission will be formed and meet in 2024 for
another full review.
The City operates and is governed by a strong City Council (Council) with a Council/Ciry Manager form
of government. The City is subject to general laws applicable to all Cities under the Ohio Constitution.
The City may exercise all powers of local self-government (known as Home Rule) and police powers to
the extent that they do not conflict with the Ohio Constitution. Legislative authority is vested in a seven
(7) member CounciL The Mayor, who serves as ceremonial head of the City, is separately elected. The
Mayor exercises limited executive and legislative authority as provided by the City Charter; however, the
Mayor has all judicial powers as conferred upon mayors under Ohio law. The Council enacts ordinances
and resolutions, approves contracts, fixes compensation of City officials and employees, sets rates and
policy's relating to City general governmental services (including proposing income and property tax
levies (voted levies)), sets utility rates, approves appropriations and borrowing money, regulates
businesses and trades, and all other related municipal services related to the City.
General elections for the City are held every two years, alternating with four (4) council seats and then
three (3) council seats plus the Mayor. All council seats and the Mayor are elected at-large and terms of
office are four (4) years. The Municipal Court Judge is separately elected every six (6) years. The
Council President is the presiding officer of Council and is elected by sitting Council members. For
information about the Mayor and Council,please visit our website at www.napoleonohio.com. Except for
Municipal Court, the Charter establishes certain administrative departments and Council may establish
additional departments as needed; Council establishes all department positions. By Charter, the City
Manager, Finance Director, Law Director and Clerk of Council are all appointed by and serve at the
pleasure of Council with no specified term limits. Except for departments of Finance, Law and Municipal
Court, the City Manager has authority over all other operational departments and appoints those
department heads. Subject to approval of Council, both Council and the Mayor, and on certain boards the
City Manager, recommends appointments of individuals to the various City boards and commissions.
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CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
Municipal Services
The City offers a wide variety of services to its Citizens as authorized by its Charter, the Ohio Revised
Code (ORC), and City Administrative Code. The broad categories of services include police and fire
protection; emergency medical rescue services; streets maintenance; traffic control; planning and
engineering; building and zoning code enforcement; cemeteries; community development; municipal
court; recreation programs and parks (including various types of ball fields, playgrounds, picnic areas, a
golf course, a pool and a boat ramp); economic development; and general administrative services. The
City does not operate hospitals or schools, and it is not responsible for public assistance programs.
The City operates four (4) enterprise activities: 1) water treatment and distribution; 2) sewer wastewater
collection and treatment, including the City's storm water system; 3) electric distribution for residential,
commercial, and industrial customers; and 4) residential solid waste collection and disposal, including a
curbside recycling program, a yard waste transfer station site, a mosquito control program, storm debris
removal and two (2) seasonal bulk refuse collection events.
The City's enterprise activities are not subject to rate review by the Public Utilities Commission of Ohio
(PUCO) or any similar regulatory body; however, by Charter, Council appoints a citizen's board called
the Board of Public Affairs (BOPA) to review and make recommendations to Council on all enterprise
activity including rates, policies and procedures. The Council, by City Charter and Home Rule, has the
necessary authority to establish and amend utility user rates as required. All utility rates are monitored on
an on-going basis to ensure their adequacy to meet operational, maintenance, debt service and capital
replacement needs. Final responsibility for enterprise rate changes lies solely with the Council.
The City is 1 of 133 municipal utility members (from nine (9) states) in American Municipal Power, Inc.
(AMP). AMP is a non-profit corparation organized in Ohio in 1971 for the purpose of owning, operating
electric facilities, providing for the generation, transmission and distribution of electric power to its
members. In addition, AMP purchases wholesale electric power and sells it to members at rates based on
purchase price plus a small service fee. AMP also develops alternative power sources, reviews short and
long-term power needs, and operates a power dispatch center 24 hours a day, 365 days a year, to serve its
member communities. The City participates in three (3)joint ventures all managed by AMP; in addition,
the City is contractually obligated for costs related to various "Take-or-Pay" power contracts including
the AMPGS project terminated in 2009 by AMP participants following an unexpected increase in costs.
Detailed descriptions of the City's obligation to joint ventures and other various contracted power
contracts are listed in the Notes to the Financial Statements under Joint Ventures and Jointly Governed
Organizations and Contingencies. Currently the City has a closed electric system and does not offer
outside power sources to its customers from other power providers.
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CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
The City has a contract with Henry County for the operation of a County/City Community Improvement
Corporation (CIC) for the purpose of Economic Development. Mutual aid contracts for fire and
emergency medical services are between the City, certain county Townships and the Henry County South
Joint Ambulance District. Henry County operates the Health District, in which the City participates
contractually, but has no direct fiduciary responsibility by agreement. The City has a contract with the
Napoleon/Henry County Chamber of Commerce to operate a Tourist Bureau funded by one half(1/2) of a
lodge tax of six (6%) percent imposed by Council and collected by the City through the Income Tax
Division of the Finance Department.
The Reporting Entity
The accompanying basic financial statements comply with the provisions of GASB Statement No. 14,
"The Financial Reporting Entity", in that the financial statements 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, or (2) the possibility that the
component unit will provide a financial benefit to or impose a financial burden on the City.
Based on the foregoing,the reporting entity of the City has no component units.
Budgetary and Accounting Controls
The City's budgetary accounting system was designed to provide reasonable assurance that:
L 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 maintained.
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 on the cash basis of accounting and is maintained at the object level for each
function within each fund by legislation approved by Council. The various objects are:
Personal Services: Other Expenditures:
• Salary and Wages • Contractual Services
• Fringe Benefits • Materials and Supplies
• Capital Outlays
• Transfers (Within Funds)
• Debt Service—Principal&Interest
Lower levels within each object are accounted for and reported internally. Such lower levels are referred
to as line items of expenditure. Estimated amounts must be encumbered (Certification of Funds) prior to
final approval of purchase orders or other contracts to vendors. Encumbrances in excess of the available
object level of appropriations are not approved unless additional appropriations are authorized. The City
Manager and Finance Director have authority to move appropriations within a specific object,but must
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CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
have legislative approval to move appropriations or supplement appropriations from one object category
to a different object category. Unencumbered appropriations return(lapse)to the unappropriated balances
in the individual funds at the end of each fiscal year. The City's fiscal year currently coincides with the
calendar year ending December 315t. The final budget must be adopted by City Council no later than
March 31 s`in the fiscal year to which it applies.
2022 Year in Review
The local economy has remained strong. The income tax collections were up 5.05% compared to the
previous year, where some other communities saw a decrease in income tax projections from the previous
year. The water, sewer, electric and sanitation funds were also strong. Water and sewer use remained
steady and sanitation fund collections remained level. The electric usage throughout the City was up in
2022, the City's rolling 3-month Power Supply Cost Adjustment Factor averaged at .0177 per KWH for
the year. Napoleon saw the completion of a 24-unit apartment complex. Napoleon did not see widespread
business closures.
Comparing municipal income taxes, on a cash basis, for 2022 to 2021, the overall combined total income
tax collections was up by 5.05%. Withholdings were up 3.43%and business net profit taxes were down
by 3% and individual taxes were up by 20.58%,in 2022 as compared to 2021. Actual income tax
revenues collected in 2022 at the one and a half(1.5%)percent rate was $5,486,710,up by$263,614 as
compared to 2021. As of the date of this report, 2023 income revenue through May is down 2.20%as
compared to the same period for 2022. In 2022,the City's allowed credit(also known as the reduced
income tax credit)for taxes paid to other Cities at 70%up to the rate of 1.5%. Starting July 1, 2022, the
City began utilizing RITA for the income tax collection.
The following are the private and public employers that have the largest work forces and are located
inside and/or just outside (adjacent to)the City:
Major Employers Nature of Activiry or Business
Inside City Limits:
Advance Drainage Systems Manufacturer of Field Tile and Sewer Pipe
Automatic Feed Company Automotive Tool and Die Machine Shop
City of Napoleon(Office& Services) Governmental Services to the City
Cloverleaf Cold Storage * Long Term Cold Storage and Warehousing
Custom Agri Systems Manufacture&Repair Agriculture Equipment
Defiance Stamping * Engineered&fabricated parts stamping
Northcrest Nursing Home Rehabilitation Center&Long-term Care Facility
Henry County Hospital Hospital Services and Care Facility
Henry County Offices Governmental Services to the County
Koester Corporation Industrial Control Systems
Snyder Chevrolet Car Sales and Repairs
Lutheran Home Rehabilitation Center&Long-term Care Facility
JAC Products Tier I Auto Supplier
Napoleon Area City School District Education—Elementary thru High School
Old Castle Precast * Structural Foam Plastic Molding
Tenneco Automotive * Rubber and Meta1 Shock Attenuation Parts
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CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
Major Employers Nature of Activiry or Business
Outside Citv Limits:
NASG * (Ridgeville Corners) Automotive Parts and Solar Energy Panel Parts
Campbell Soup Supply Company, LLC ** Canned Soups, Beverages, Other Food Products
Filling Home of Mercy Developmental Disabilities Care&Services
Gerken Materials Road Construction and Materials
Dana Drivetrain and e-Propulsion Systems
* National Companies with Additional Locations
** Largest U.S. Location
In 2022, the City accomplished numerous undertakings that provide for and promote the welfare of its
residents:
• Ongoing construction of the WWTP rehab project. Projected completion date is 2023.
• Keller Napoleon Industrial Properties, LLC. started a$6.SM project of a 150,000 Sq. Ft. facility.
• Received the Reliable Public Power Provider designation from the American Public Power
Association,which is the highest recognition a public power utility can receive.
• Finished a 2-year leadership development and training program through a company called
Wildsparq. Approximately 37 supervisors in the city participated.
• Used Grant funds,purchased trench boxes for the Operations Department.
• Completed reconstruction of a portion of American Road and Oakwood Avenue in our industrial
corridor in the City.
• Repaved a few residential streets, including Westmoreland Avenue, Independence Avenue, and a
portion of Woodlawn Avenue, Lynne Avenue and Glenwood Avenue.
• Thermaduct signed an agreement to move into the old Walmart building in 2023. This building
has been vacant for over 20 years.
• Dunkin Donuts completed a remodel of an empty restaurant building and opened.
• Bigby Coffee built a new facility and opened.
Napoleon continues to maintain essential services as expected by residents and businesses. The following
are some of the major goals and projects for the future:
• Repave residential streets around the Napoleon High School, E. Maumee Avenue, Scott Street,
Meekison Street,Maumee Lane, Union Street,DeRome Drive and Wayne Park Drive.
• Complete the reconstruction of the Van Hyning Pump Station. To be finished in 2023.
• Begin reconstruction of the Palmer Ditch Pump Station.
• Improve pedestrian walking and biking abilities by completing the Ritter Park Path Project.
• Rerouting of the sewer interceptor line on Meekison Street.
• Waterline replacement projects on W. Main Street and Orwig Avenue.
• Actively replacing lead service lines throughout the City.
• Creating an Energy Assessment agreement area throughout the City.
• Assisting Dana Corporation with increased electric usage in a local warehouse facility.
• Construction on a new Agricultural Building to be started at the fairgrounds.
• Add a roundabout at a dangerous intersection on the north side of the city.
• Replacement of a bridge on Oakwood Avenue over Oberhaus Creek.
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CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
Continuous improvement is important to the City and the Citizen's we serve. Departments continue to do
annual reviews of their operations for cost savings and to identify new potential revenue sources. The
City continues the ongoing process of updating department policies and procedures for operational
efficiencies,risk management and to reflect changes to City code.
AWARDS AND ACKNOWLEDGEMENTS
Independent Audit
Included in this report is an unmodified audit opinion rendered on the City's financial statements for the
year ended December 31, 2022, issued by BHM CPA Group Inc., Piketon, Ohio, the contracted IPA
working for the AOS Office of Ohio and performing the 2021 Audit. City management plans to continue
to subject the financial statements to an annual independent audit as part of the preparation of an ACFR,
and to meet requirements of certain revenue trust agreements on enterprise revenue debt. In addition, an
annual audit serves to maintain and strengthen the City's accounting and budgetary controls.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awards a
Certificate of Achievement for Excellence in Financial Reporting to those governmental entities that
qualify. To be awarded a Certificate of Achievement, a governmental unit must prepare an easily readable
and efficiently organized Comprehensive Annual Financial Report whose contents satisfy all program
standards. The report must satisfy both GAAP and applicable legal requirements respective to the reporting
entity. An awarded Certificate of Achievement is valid for a period of one year only.
The City received a Certificate of Achievement for the fiscal year ended December 31, 2021. We believe
this, our twenty-seventh (27tth) Annual Financial Report for 2022, meets the high standards set by the
GFOA for a Certificate of Achievement for Excellence in Financial Reporting, and so therefare the City is
submitting it to GFOA for certification.
Public Disclosure
The publication of this ACFR is indicative of the City's commitment to provide significantly enhanced
financial information and accountability to its citizens. The report is made available on the City's website.
-xii -
CITY OF NAPOLEON, OHIO
Letter of Transmittal
For the Year Ended December 31, 2022
Acknowledgments
The City is grateful to those that assist to make this report possible, including the Henry County Auditor's
Office,the Henry County Chamber of Commerce and CIC, and the audit staff of BHM CPA Group Inc.
Sincere appreciation is also extended to the many individuals who have worked diligently and contributed
significant time and effort in gathering data for this report, particularly the staff of Donald J. Schonhardt
& Associates, Inc., who through their continued knowledge and professionalism help make this annual
project become a reality.
A special thank you is extended to the Members of City Council, the Mayor and the City Departments for
the support and trust shown to the City Administration and the Finance Department and for allocating the
resources and time for the development of this report. A final thank you goes to the Citizens of
Napoleon, Ohio, who continue to support the many decisions made by the City in its financial operations.
Finally, we would especially like to recognize City staff, all of whom exhibited dedication and
professionalism throughout the many hours required in preparing this report.
Respectfully submitted,
r�
�
Kevin Garringer Joel L. Mazur
Finance Director City Manager
City of Napoleon, Ohio City of Napoleon, Ohio
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CITY OF NAPOLEON, OHIO
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CITY OF NAPOLEON, OHIO
List of Principal Officials
For the Year Ended December 31, 2022
Elected Officials
Term (*)Years
Name Title Expires of Service Surety
at
12/31/22
Jason P. Maassel Mayor 12/31/23 7.00 A
Joseph D. Bialorucki President of Council 12/31/25 7.00 A
Daniel L. Baer President Pro-Tem of Council 12/31/23 7.00 A
David Cordes Council Person 12/31/25 1.00 A
Lori L. Siclair Council Person (Appointed) 12/31/25 5.00 A
Kenneth Haase Council Person 12/31/25 5.00 A
J. Ross Durham Council Person 12/31/23 3.00 A
Molly Knepley Council Person 12/31/23 3.00 A
(*)Years represent those in current listed position; individual may have Ciry time in other positions.
Appointed Officials
Term Years of
Name Title Expires Service Surety
Joel L. Mazur City Manager(Apt. O1/09/17) Indefinite 6.00 A
Billy D. Harmon Law Director Indefinite 6.00 A
Kevin Garringer Director of Finance Indefinite 2.00 Bonded
*
Melissa K. Cotter Clerk of Courts Indefinite 6.00 A
(A) Surety-PEP Insurance Company,Public Official Bond Surety up to $1,000,000.
* Public Officials Faithful Performance Bond through Travelers Insurance Company in the amount
of$50,000
City Physical and Web Addresses:
City of Napoleon, Ohio
255 West Riverview Avenue
P.O. Box 151
Napoleon, Ohio 43545-0151
www.napoleonohio.com
-xv-
CITY OF NAPOLEON, OHIO
City Organizational Chart
For the Year Ended December 31, 2022
Citizens
Boards and Mayor and Judge and
Commissions Council Municipal Court
Finance City Law
Department Manager Director
Engineering,
Electric Cemetery Building and
Zoning
Human Fire and
Resources Rescue Operations,
Streets and
Sanitation
Management Parks and
Information Recreation
Systems
Administrator Water and
Wastewater
OPolice
Elected
Boards and Commissions
Board of Public nffairti Ludgc Tax and ndvisoq�Conlrol[3oard E3oard uf Zoning Appcalti
Civil Service Commission Planning Commission l ree Commission
Chartcr Rcvicw Commission Amcricans with Disabilitics Act Parks and Rccrcation Board
E3oard uf E3uilding Appeals Compliancc[3oard Rccords Rct�ntion Commission
CIC Board County/City Cieneral Health District Housing Advisory Board
NC"I V Advisory Board Volunteer Firetighters Dependent Board I ax Incentive Revie�v Council
Privacy Committee Preser�ation Commission llealth Care Cost Commission
I lousing Council Board o1�Review Fair I lousing Board
Napolcon InG�structurc/ Stifcty Conunittcc Audit Conunittcc
Gcunomic Dcvclopmcnt Maumut Vallcy Planning and l lcnry County Mctropolitan
Fund Rcvicw Committcc Organizatirnial Board Housing Authority
-XVl -
CITY OF NAPOLEON, OHIO
Government Finance Officers Association of the United States and Canada
Certificate of Achievement for Excellence in Financial Reporting
(_�o�cnuncnt Financc C>fliccrs As.ociatiun
Certificate of
Achievement
for Excellence
in Financial
Reporting
Prescntcd to
Citv of Napoleon
� Ohio
Fur its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
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FINANCIAL SECTION
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CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
City of Napoleon
Henry County
255 West Riverview Avenue
Napoleon, Ohio 43545-0151
To the Members of Council:
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Napoleon, Henry County, Ohio
(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, each
major fund, and the aggregate remaining fund information of the City of Napoleon, Henry County, Ohio as
of December 31, 2022, and the respective changes in financial position and, where applicable, cash flows
thereof and the budgetary comparison for the General Fund for the year then ended in accordance with
the accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City, and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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.
1
One East Campus View Blvd.Suite 300 • Columbus,OH 43235 • (614)430-0590 • FAX(614)448-4519
PO Box 875 • 129 Pinckney Street • Circleville,OH 43113 • (740)474-5210• FAX(740)474-7319
PO Box 687 • 528 S.West Street • Piketon,OH 45661 • (740)289-4131 • FAX(740)289-3639
www.bhmcpagroup.com
City of Napoleon
Henry County
Independent Auditor's Report
Page 2
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and GovernmentAuditing Standards, we
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
2
City of Napoleon
Henry County
Independent Auditor's Report
Page 3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, and schedules of net pension and other post-employment benefit liabilities and
pension and other post-employment benefit contributions be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with 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 basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual financial report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover
the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
3
City of Napoleon
Henry County
Independent Auditor's Report
Page 4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2023,
on our consideration of the City's internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
City's internal control over financial reporting and compliance.
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BHM CPA Group, Inc.
Piketon, Ohio
June 24, 2023
4
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
The management discussion and analysis (MD&A) of the City of Napoleon's (City) financial
performance provides an overall review of the Ciry'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 HIGHLIGHTS
Key financial highlights for 2022 are as follows:
❑ In total, net position increased $5,778,714, from 2021. The net position of governmental activities
increased $1,275,905 from 2021; and the net position of business-type activities increased $4,502,809,
from 2021. Please see additional discussion on this item, and the Changes in Net position Table, both
listed later in the MD&A.
❑ Total revenues exceeded $38 million. $7.6 million was general revenues, or 20% of the total revenues;
and$30.1 million was program specific revenues in the form of charges for services and sales, operating
grants and contributions and capital grants and contributions, or 80%of the total revenues.
❑ The City had $9.2 million in program expenses related to governmental activities; only $3.1 million of
these expenses were offset by program specific revenues. General revenues (primarily taxes) of$7.4
million,plus excess cash reserves,were adequate to provide for the balance on these programs.
❑ Among major funds, the general fund had $69 million in revenues, $4.9 million in expenditures,
(expenditures reflect a net of reimbursements (or off-sets) for shared administrative costs allocated to
the business type activities) and other financing sources and uses. The general fund's fund balance
decreased$208,020.
❑ Net position for the proprietary funds increased by$4,482,614.
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
statements for nonmajor governmental funds and internal service 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.
- 5 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
The financial statements also include notes that explain some of the information in the financial
statements and provide more detailed data. The statements are followed by a section of required
supplementary information that further explains and supports the information in the financial statements.
Government-wide Statements
The government-wide statements report information about the City as a whole using accepted methods
similar to those used by private-sector companies. The Statement of Net Position includes all of the
government's assets, deferred outflows of resources, liabilities and deferred 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 they have changed. Net-
position (the difference between the City's assets, deferred outflows of resources, liabilities and deferred
inflows of resources) are one way to measure the City's financial health or position.
• Over time, increases or decreases in the City's net position are an indicator of whether its financial
health is improving or deteriorating,respectively.
• To assess the overall health of the City you need to consider additional nonfinancial factors such as
properry tax base, current property tax laws, conditions of the City's streets and general infrastructure
and status of growth within the City.
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, leisure time activities,
community environment, transportation and general government.
• Business-Type 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 electric, water, sewer and
sanitation services are reported as business-type activities.
Fund Financial Statements
The fund financial statements provide more detailed information about the City's most significant funds,
not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources
of funding and spending for particular purposes.
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 are reconciled in the financial
statements.
- 6 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
Proprietary Funds — Proprietary funds use the same basis of accounting as business-type activities;
therefore, these statements will essentially match.
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 statement because
the resources of those funds are not available to support the City's own programs. All of the City's
fiduciary activities are reported in a separate Statement of Fiduciary Assets and Liabilities and a separate
Statement of Fiduciary Net Position.
FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
The following table provides a comparison of net position between 2022 and 2021:
Governmental Business-type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Current and other assets $13,631,189 $12,594,582 $32,048,371 $29,818,989 $45,679,560 $42,413,571
Capital assets,Net 45,200,780 46,075,553 59,959,873 52,526,414 105,160,653 98,601,967
Total assets 58,831,969 58,670,135 92,008,244 82,345,403 150,840,213 141,015,538
Deferred outflows of resources 2,465,545 1,724,335 572,826 456,630 3,038,371 2,180,965
Netpension liabiliry 5,680,487 7,130,570 1,367,957 2,358,857 7,048,444 9,489,427
Net OPEB liability 731,747 696,504 0 0 731,747 696,504
Other long-term liabilities 4,822,592 5,099,872 37,911,523 31,797,769 42,734,115 36,897,641
Other liabilities 993,835 792,659 1,593,006 1,740,087 2,586,841 2,532,746
Totalliabilities 12,228,661 13,719,605 40,872,486 35,896,713 53,101,147 49,616,318
Deferred inflows ofresources 4,892,500 3,774,417 2,210,129 1,909,674 7,102,629 5,684,091
Net position:
Net investment in capital assets 41,100,079 41,700,091 22,504,359 21,190,379 63,604,438 62,890,470
Restricted 4,450,723 4,386,895 0 0 4,450,723 4,386,895
Unrestricted(deficit) (1,374,449) (3,186,538) 26,994,096 23,805,267 25,619,647 20,618,729
Total net position $44,176,353 $42,900,448 $49,498,455 $44,995,646 $93,674,808 $87,896,094
The net pension liability (NPL) is reported by the City pursuant to GASB Statement 68, "Accounting and
Financial Reporting for Pensions—an Amendment of GASB Statement 27." For fiscal year 2018, the
City adopted 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 wi11 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 net OPEB liability to the reported
net position and subtracting deferred outflows related to pension and OPEB.
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
- 7 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
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:
1. 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.
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, respectively, not accounted for as
deferred inflows/outflows. As a result of implementing GASB 75, the City is reporting a net OPEB
liability and deferred inflows/outflows of resources related to OPEB on the accrual basis of accounting.
- 8 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
Governmental Business-type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:
Charges far Services and Sales $1,630,086 $1,896,115 $26,881,787 $28,812,828 $28,Sll,873 $30,708,943
Operating Grants and Contributions 701,307 902,153 0 0 701,307 902,153
Capital Grants and Conh-ibutions 777,295 3,872,102 461,632 387,441 1,238,927 4,259,543
Generalrevenues:
Properiy Taxes 752,256 717,005 0 0 752,256 717,005
Payments in Lieu of Taxes 33,301 0 0 0 33,301 0
Municipal Income Taxes 5,894,014 4,904,826 0 0 5,894,014 4,904,826
Other Local Taxes 488,712 489,124 0 0 488,712 489,124
Grants and Entitlements
not Restricted to Specific Programs 646,823 716,775 0 0 646,823 716,775
Investment Earnings (969,943) (201,552) 188,913 94,432 (781,030) (107,120)
Miscellaneous 559,627 259,211 0 0 559,627 259,211
Total revenues 10,513,478 13,555,759 27,532,332 29,294,701 38,045,810 42,850,460
Program Expenses:
SecurityofPersonsandProperty 4,187,848 4,072,196 0 0 4,187,848 4,072,196
Public Health and Welfare Services 94,765 75,470 0 0 94,765 75,470
Leisure Time Activities 1,038,018 3,215,616 0 0 1,038,018 3,215,616
Community Environment 52,002 88,315 0 0 52,002 88,315
Transportation 1,557,945 1,475,757 0 0 1,557,945 1,475,757
General Government 2,233,563 452,869 0 0 2,233,563 452,869
Interest and Fiscal Charges 73,432 103,000 0 0 73,432 103,000
Electric 0 0 16,494,445 15,002,149 16,494,445 15,002,149
Water 0 0 3,355,622 3,237,649 3,355,622 3,237,649
Sewer 0 0 2,277,113 6,325,475 2,277,113 6,325,475
Sanitation 0 0 902,343 722,412 902,343 722,412
Total expenses 9,237,573 9,483,223 23,029,523 25,287,685 32,267,096 34,770,908
Change in Net Position Before Transfers 1,275,905 4,072,536 4,502,809 4,007,016 5,778,714 8,079,552
Transfers 0 836,442 0 (836,442) 0 0
Total Change in Net Position 1,275,905 4,908,978 4,502,809 3,170,574 5,778,714 8,079,552
Beginning Net Position,as Restated 42,900,448 37,991,470 44,995,646 41,825,072 87,896,094 79,816,542
Ending Net Position $44,176,353 $42,900,448 $49,498,455 $44,995,646 $93,674,808 $87,896,094
- 9 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
Governmental Activities
The City's governmental activities net position increased by $1,275,905 from 2021 to 2022. Much of
this increase was related to increases in both property and income tax revenue, paired with an increase in
the OPERS Net OPEB asset during the year. The increase in the net OPEB asset is offset against the
department expenditures on an entity wide basis and results in a reduction in OPEB expense for the year.
The City receives an income tax, which is based on 1.5% of all salaries, wages, commissions and other
compensation earned from residents living within the City and from nonresidents for work done or
services performed or rendered in the City.
Properry taxes and income taxes made up 7.2% and 56.1% respectively of revenues for governmental
activities for the City in fiscal year 2022. The City's reliance upon tax revenues is demonstrated by the
following graph indicating 68.19%of total revenues from general tax revenues:
Percent -- --
Revenue Sources 2022 of Total � 29.57%
General Shared Revenues $646,823 6.15% o � - - - - - --�%'
6.15/o'
Program Revenues 3,108,688 29.57% , -
General Tax Revenues 7,168,283 68.19% _3.t9%
GeneralOther (410,316) -3.91% 68.19%
Total Revenue $10,513,478 100.00%
This space intentionally left blank.
- 10 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
Business-Type Activities
In 2022, the total net position of all business-type activities increased by $4,502,809. Just like in the
governmental activities, much of this increase was related to an increase in the OPERS Net OPEB asset
during the year. The increase in the net OPEB asset is offset against the department expenditures on an
entity wide basis and results in a reduction in OPEB expense for the year. There was also a slight
increase in charges for services across all of the proprietary funds.
User rates in the enterprise funds are evaluated annually by management with rate adjustments
recommended by City administration to the Board of Public Affairs and the City Council (legislative
body) for review and formal approval. Changes to user rates are made periodically whenever necessary
to keep pace with increased operational and capital costs.
FINANCIAL ANALYSIS OF THE CITY'S GOVERNMENTAL FUNDS
The City's governmental funds reported a combined fund balance of$10,156,802, which is an increase of
$902,301 from last year's balance of$9,254,501. The schedule below indicates the fund balance and the
total change in fund balance by fund type as of December 31, 2022 and 2021:
Fund Balance Fund Balance Increase
December 31,2022 December 31,2021 (Decrease)
General $3,021,575 $3,229,595 ($208,020)
Special Assessment Bond Rerirement 616,028 609,288 6,740
CapitalImprovement 1,411,001 712,314 698,687
Aquatic Center 277,802 302,231 (24,429)
Other Governmental 4,830,396 4,401,073 429,323
Total $10,156,802 $9,254,501 $902,301
General Fund — The City's General Fund balance slightly increased primarily due to a decrease in
expenditures. The tables that follow assist in illustrating the financial activities of the General Fund:
2022 202] Increase
Revenues Revenues (Decrease)
Taxes(Income,Property and Other) $6,911,999 $5,668,103 $1,243,896
Intergovernmental Revenue 375,398 311,761 63,637
Charges for Services 242,302 564,183 (321,881)
Licenses and Permits 78,783 65,926 12,857
Investment Earnings (1,015,480) (231,743) (783,737)
Fines and Forfietures 124,225 151,555 (27,330)
All Other Revenue 219,519 189,531 29,988
Total $6,936,746 $6,719,316 $217,430
General Fund revenues in 2022 increased 3.2% compared to revenues in fiscal year 2021. The most
significant factors contributing to this increase was in income tax revenue which was offset by a decrease
in investment market values. This kept this increase from being larger.
- 11 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
2022 2021 Increase
Expenditures Expenditures (Decrease)
Security of Persons and Property $3,748,786 $3,521,014 $227,772
Public Health and Welfare Services 107,677 106,266 1,411
Community Environment 39,000 39,000 0
General Govemment 1,064,871 864,483 200,388
Total $4,960,334 $4,530,763 $429,571
General Fund expenditures increased by $429,571 in 2022 from 202L The largest increase was $227,772
in Security of Persons and Property. This is attributed to a slight increase in salaries and benefits for both
the police and fire personnel from 2021 to 2022. General Government expenditures reflect a net of
reimbursements (or off-sets) for shared administrative costs allocated to the business type activities. In
addition, reimbursements (off-sets), and fund transfers, are included for the inside the City kilowatt hour
(kWh) tax monies collected in the Electric Fund, and directed back to the General Fund pursuant to Ohio
law. The kWh tax reimbursements off-set the general government charged utilities of electric and water,
with the net balance receipted to the General Fund.
Both the Special Assessment Bond Retirement Fund and the Capital Improvement Fund balances
increased in 2022 from 2021. The Aquatic Center Fund balance showed a decrease from 2021 to 2022
mostly due to a decrease in investment earnings during 2022. The Other Governmental Funds increased
in 2022 from 2021. All of these were slight changes which can be attributed to the annual activities of
these funds. The increase in the Capital Improvement Fund balance was mostly related to a decrease in
capital expenditures during 2022. The increase in the Special Assessment Bond Retirement Fund can be
attributed to the decrease in principal and interest payments on special assessment debt during the year.
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 (known as Cash Basis). The most
significant budgeted fund is the General Fund. During the course of fiscal year 2022 the City amended its
General Fund budget, along with other funds,various times on an as needed basis.
In the General Fund, the final budget basis for revenue was $7.4 million, including other financing
sources. This was an increase from the original conservative budget estimates of $6.2 million mostly
related to an anticipation of increased income tax revenue for the year. The General Fund had an
adequate revenue stream and fund balance reserves to cover its expenditures in 2022.
- 12 -
CITY OF NAPOLEON, 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 fiscal 2022 the City had $105,160,653 net of accumulated depreciation invested in land,
improvements, infrastructure, buildings, machinery and equipment and construction in progress. Of this
total, $45,200,780 was related to governmental activities and $59,959,873 to the business-type activities.
The following table shows fiscal year 2022 and 2021 balances:
Governmental Increase
Acrivities (Decrease)
2022 2021
Land $10,055,971 $10,055,971 $0
Construcrion in Progress 6,147,056 6,147,056 0
Improvements 10,104,543 9,740,831 363,712
BuIldings 3,814,174 3,814,174 0
Machinery and Equipment 7,352,033 7,212,496 139,537
Infrastructure 37,825,087 37,825,087 0
Less:Accumulated Depreciation (30,098,084) (28,720,062) (1,378,022)
Totals $45,200,780 $46,075,553 ($874,773)
Business-Type Increase
Activities (Decrease)
2022 2021
Land $245,525 $245,525 $0
Construcrion in Progress 12,483,368 4,262,817 8,220,551
Buildings 26,644,240 26,644,240 0
Improvements 48,647,432 47,570,617 1,076,815
Machinery and Eqiupment 7,725,967 7,502,356 223,6ll
Less:Accumulated Depreciation (35,786,659) (33,699,141) (2,087,518)
Totals $59,959,873 $52,526,414 $7,433,459
In the governmental activities, the increase in improvements is due to City road rebuilds and other
building improvements and the increase to machinery and equipment is due to the normal replacement of
aging equipment.
In the business-type activities, the large increase in construction in progress is related to the continued
improvements at the waste water treatment facility. Once again the increase in machinery and equipment
can be attributed to the normal replace of aging equipment during the year. (See NOTE 10 — CAPITAL
ASSETS to the Basic Financial Statements for additional explanation and information.)
- 13 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
Debt
At December 31, 2022, the City had$12 million in bonds outstanding, $860,000 due within one year. The
following table summarizes the City's debt outstanding as of December 31, 2022 and 2021:
2022 2021
Governmental Activities:
General Obligation Bonds $4,100,701 $4,375,462
Compensated Absences 721,891 724,410
Net Pension Liabiliry 5,680,487 7,130,570
Net OPEB Liabiliry 731,747 696,504
Total Governmental Activities 11,234,826 12,926,946
Business-Type Activities:
Revenue Bonds $8,093,002 $8,666,107
WPCLF Loans Payable 3,242,048 3,629,414
OWDA Loans Payable 11,352,360 3,794,512
OPWC Loans Payable 150,000 175,000
OSWRC Deferred Loan Payable 246,499 246,499
WSRLA Loan 14,371,605 14,824,503
Compensated Absences 456,009 461,734
Net Pension Liabiliry 1,367,957 2,358,857
Total Business-Type Activities 39,279,480 34,156,626
Totals $50,514,306 $47,083,572
State statutes limit the amount of unvoted general obligation debt the City may issue. The aggregate
amount of the City's unvoted debt is also subject to overlapping debt restrictions with other political
subdivisions. The actual aggregate amount of the City's unvoted debt, when added to the other applicable
political subdivisions within Henry County, Ohio, where Napoleon is located, is limited to ten mills. At
December 31, 2022, the City's outstanding debt was below the legal limit. (See NOTE 14 — LONG
TERM DEBT to the Basic Financial Statements for additional explanation and information.)
- 14 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
CITY'S GENERAL AND OTHER FUNDS BUDGETS AND OTHER ECONOMIC FACTORS
The City purposefully builds into its budget conservative revenue estimates with offsetting reductions or
limited increases in base operating costs. Budgetary revenue estimates for the General Fund, and other
funds, typically projects no growth, or estimated reductions as necessary, in the various revenue sources
for each budgeted fund. Original budgeted expenditures for the General Fund, and other funds, are
typically projected to exceed revenues. Reductions are made to budgeted expenditures, as necessary, to
keep the funds in balance as required by State Law. The City utilizes actual or projected fund balance
reserves for any negative differences in revenues to expenditures to keep the budget balanced. The
original 2022 General Fund budgeted revenues were conservatively projected at $6.1 million and ended
up lower than the final actual revenues of $7.4 million; and the budgeted expenditures were projected
above the final actual expenditures. Comparing the General Fund 2022 original estimated revenues to the
actual receipts on a cash basis, there was a 16% increase in actual receipts compared to estimated
revenues, mostly related to income taxes for the year. Comparing the General fund 2022 original
budgeted expenditures to actual expenditures on a cash basis, there was a 7% decrease in actual final
expenditures compared to original budgeted expenditures. The process used in 2022 of the lower estimate
to actual for revenues, and the higher estimate to actual for expenditures assists in keeping year ending
fund reserves at sustainable levels, and helps to buffer any potential down turns, or slow growth periods,
in local economic conditions.
During the 2022 budget review and approval process, certain department requests were reduced from
original submissions; certain requested capital projects and capital acquisitions were reduced or
eliminated; and only those items that City management and City Council determined necessary for base
service levels were appropriated.
We continue to pursue new potential revenue sources, while reviewing the possibility of increasing
existing sources. A close monitoring of current and projected economic conditions is an ongoing process
each year to determine if increased revenues or reductions in expenditures are necessary to maintain fiscal
stability.
- 15 -
CITY OF NAPOLEON, OHIO
Management's Discussion and Analysis
For the Year Ended December 31, 2022 Unaudited
Over the years, City budgets have reflected a number of actions, including a voted increase to income tax
rates, to account for changes in economic conditions; and, for changes caused by reductions of shared
governmental revenues from the State of Ohio, and other additional unfunded mandates placed on the
City by both the State and Federal Governments. Budgetary reviews and adjustments are made quarterly
throughout the year, as recommended by Management, and approved by City Council. Please see the
letter of transmittal for a more in-depth review of the local economy and its impact on the City.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general
overview of the City's finances and to show the City's accountability for the money it receives. It is
intended to reflect the most current and up to date information on the City for the period reported.
However, if you have questions about this report or need additional financial information please contact
the Finance Department by one of the following venues:
Written Request: City of Napoleon, Ohio
Attn: Department of Finance
255 West Riverview Avenue
P.O. Box 151
Napoleon, Ohio 43545-0151
Phone Request: Phone (419) 599-1235
FAX (419) 599-8393
E-mail Request: kgarringer@napoleonohio.com
Web Page: www.napoleonohio.com
- 16 -
CITY OF NAPOLEON, OHIO
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- 17 -
CITY OF NAPOLEON, OHIO
Statement of Net Position
December 31, 2022
Governmental Business-Type
Activities Activities Total
Assets:
Cash and Cash Equivalents $ 8,907,093 $ 25,330,724 $ 34,237,817
Receivables:
Property Taxes 828,783 0 828,783
Municipal Income Ta;ces 1,592,282 0 1,592,282
Accounts 422,352 4,327,781 4,750,133
Intergovernmental 773,650 0 773,650
Interest 11,482 ll,677 23,159
Special Assessments 0 80,524 80,524
Loans 128,316 0 128,316
Internal Balances 44,444 (44,444) 0
Inventory of Supplies at Cost 378,893 1,518,574 1,897,467
Net OPEB Asset 543,894 492,815 1,036,709
Capital Assets:
Capital Assets Not Being Depreciated 16,203,027 12,728,893 28,931,920
Capital Assets Being Depreciated,Net 28,997,753 47,230,980 76,228,733
Investment in Joint Venture 0 330,720 330,720
Total Assets 58,831,969 92,008,244 150,840,213
Deferred Outflows of Resources:
Pension 2,064,791 572,826 2,637,617
OPEB 400,754 0 400,754
Total Deferred Outflows of Resources 2,465,545 572,826 3,038,371
Liabilities:
Accounts Payable 334,847 1,502,148 1,836,995
Accrued Wages and Benefits 160,580 82,716 243,296
Intergovernmental Payable 30,608 0 30,608
Unearned Revenue 462,106 0 462,106
Accrued Interest Payable 5,694 8,142 13,836
Long-Term Liabilities:
Due Within One Year 630,615 1,303,747 1,934,362
Due in Mare Than One Year 4,191,977 36,607,776 40,799,753
Net Pension Liability 5,680,487 1,367,957 7,048,444
Net OPEB Liability 731,747 0 731,747
Totall�abilities 12,228,661 40,872,486 53,101,147
(Continued)
- 18 -
CITY OF NAPOLEON, OHIO
Governmental Business-Type
Activities Activities Total
Deferred Inflows of Resources:
Property Tax Levy for Neat Fiscal Year 793,074 0 793,074
Pension 3,239,921 1,700,947 4,940,868
OPEB 859,505 509,182 1,368,687
Total Deferred Inflows of Resources 4,892,500 2,210,129 7,102,629
Net Position:
Net Investment in Capital Assets 41,100,079 22,504,359 63,604,438
Restricted For:
CapitalProjects 294,348 0 294,348
Debt Service 638,494 0 638,494
Street Construction,MaintenanceandRepair 1,482,842 0 1,482,842
Fire Equipment 519,213 0 519,213
Court Improvement 209,980 0 209,980
Other Purposes 1,305,846 0 1,305,846
Unrestricted(Deficit) (1,374,449) 26,994,096 25,619,647
Total Net Position $ 44,176,353 $ 49,498,455 $ 93,674,808
See accompanying notes to the basic fmancial statements
- 19 -
CITY OF NAPOLEON, OHIO
Statement ofActivities
For the Year Ended December 31, 2022
Program Revenues
Charges for Operating Capital Grants
Services and Grants and and
Expenses Sales Contributions Contributions
Governmental Activities:
Security of Persons and Property $ 4,187,848 $ 1,115,612 $ 11,963 $ 0
Public Health and Welfare Services 94,765 14,403 0 0
Leisure Time Activities 1,038,018 466,881 0 0
Community Environment 52,002 ll,926 13,916 0
Transportation 1,557,945 8,133 673,697 764,350
General Government 2,233,563 13,131 1,731 12,945
Interest and Fiscal Charges 73,432 0 0 0
Total Governmental Activities 9,237,573 1,630,086 701,307 777,295
Business-Type Activities:
Electric 16,494,445 17,484,705 0 0
Water 3,355,622 4,372,307 0 37,183
Sewer 2,277,113 4,ll 5,241 0 424,449
Sanitation 902,343 909,534 0 0
Total Business-Type Activities 23,029,523 26,881,787 0 461,632
Totals $ 32,267,096 $ 28,511,873 $ 701,307 $ 1,238,927
General Revenues:
Property Taxes
Payments in Lieu of Taxes
Municipal Income Taxes
Other Local Taxes(kWh Tax)
Grants and Entitlements not Restricted to Specific Programs
Investment Earnings
Miscellaneous
Total General Revenues
Change in Net Position
Net Position Beginning of Year
Net Position End of Year
See accompanying notes to the basic fmancial statements
- 20 -
CITY OF NAPOLEON, OHIO
Net(Expense)Revenue
and Changes in Net Position
Governmental Business-Type
Activities Activities Total
$ (3,060,273) $ 0 $ (3,060,273)
(80,362) 0 (80,362)
(571,137) 0 (571,137)
(26,160) 0 (26,160)
(111,765) 0 (111,765)
�z,zos,�sd� o �2,zos,�s6�
(73,432) 0 (73,432)
�6,ias,ass� o �6,i2a,sss�
0 990,260 990,260
0 1,053,868 1,053,868
0 2,262,577 2,262,577
0 7,191 7,191
0 4,313,896 4,313,896
(6,128,885) 4,313,896 (1,814,989)
752,256 0 752,256
33,301 0 33,301
5,894,014 0 5,894,014
488,712 0 488,712
646,823 0 646,823
(969,943) 188,913 (781,030)
559,627 0 559,627
7,404,790 188,913 7,593,703
1,275,905 4,502,809 5,778,714
42,900,448 44,995,646 87,896,094
$ 44,176,353 $ 49,498,455 $ 93,674,808
-21 -
CITY OF NAPOLEON, OHIO
Balance Sheet
Governmental Funds
December 31, 2022
Special
Assessment
Bond Capital
General Retirement Improvement Aquatic Center
Assets:
Cash and Cash Equivalents $ 1,615,628 $ 616,028 $ 1,499,464 $ 277,517
Receivables:
Property Taxes 360,469 0 0 305,839
Municipal Income Taxes 1,592,282 0 0 0
Accounts 33,935 0 0 0
Intergovernmental 220,808 0 195,828 3,630
Interest 8,523 404 0 182
Loans 0 0 0 0
Interfund Loans Receivables 0 0 2,800 0
Inventory of Supplies,at Cost 8,455 0 0 0
Total Assets $ 3,840,100 $ 616,432 $ 1,698,092 $ 587,168
Liabilities:
Accounts Payable $ 142,444 $ 0 $ 91,263 $ 299
Accrued Wages and Benefits Payable 104,983 0 0 0
Intergovernmental Payable 30,608 0 0 0
Interfund Loans Payable 0 0 0 0
Unearned Revenue 0 0 0 0
Total Liabilities 278,035 0 91,263 299
Deferred Inflows of Resources:
Unavailable Amounts 195,281 404 195,828 16,546
Property Tax for Neat Fiscal Year 345,209 0 0 292,521
Total Deferred Inflows of Resources 540,490 404 195,828 309,067
Fund Balances:
Nonspendable 19,678 0 0 0
Restricted 0 616,028 0 277,802
Committed 13,590 0 1,411,001 0
Assigned 68,755 0 0 0
Unassigned 2,919,552 0 0 0
Total Fund Balances 3,021,575 616,028 1,411,001 277,802
Total Liabilities,Deferred Inflows of Resources
and Fund Balances $ 3,840,100 $ 616,432 $ 1,698,092 $ 587,168
See accompanying notes to the basic fmancial statements
- 22 -
CITY OF NAPOLEON, OHIO
Other Total
Governmental Governmental
Funds Funds
$ 4,846,665 $ 8,855,302
162,475 828,783
0 1,592,282
388,407 422,342
353,384 773,650
2,373 11,482
128,316 128,316
0 2,800
363,142 371,597
$ 6,244,762 $ 12,986,554
$ 97,685 $ 331,691
52,361 157,344
0 30,608
2,800 2,800
462,106 462,106
614,952 984,549
644,070 1,052,129
155,344 793,074
799,414 1,845,203
363,142 382,820
3,218,267 4,ll2,097
1,240,143 2,664,734
11,644 80,399
(2,800) 2,916,752
4,830,396 10,156,802
$ 6,244,762 $ 12,986,554
- 23 -
CITY OF NAPOLEON, OHIO
Reconciliation Of Total Governmental Fund Balances
To Net Position Of Governmental Activities
December 31, 2022
Total Governmental Fund Balances $ 10,156,802
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 reported in the funds. 45,193,134
Other long-term assets are not available to pay for current-
period eapenditures and therefore are deferred in the funds.
Municipal Income Taxes 0
Property Taxes 34,861
Charges far Services 402,149
Interest Revenues 11,482
Intergovernmental 603,637 1,052,129
The net pension/OPEB liability is not due and payable in the current period;
therefore,the liability and related deferred inflows/outflows are not
reparted in governmental funds:
Net OPEB Asset 523,490
Deferred Outflows-Pension 2,041,077
Deferred Inflows-Pension (3,169,501)
Deferred Outflows-OPEB 400,754
Deferred Inflows-OPEB (838,424)
Net Pension Liability (5,623,855)
Net OEPB Liabiliry (731,747) (7,398,206)
Accrued interest on outstanding debt is not due and payable in
the current period and,therefore, is not reported in the funds:
it is reported when due. (5,694)
Internal service funds are used by management to charge
the costs of insurance to mdividual funds. The assets
and liabilities of the internal service funds are included in
governmental activities in the statement of net position. (7,843)
Long-term liabilities, including bonds payable,are not due
and payable in the current period and therefore are not
reparted in the funds.
General Obligation Bonds Payable (4,015,000)
Premium on General Obligation Bonds Payable (85,701)
Compensated Absences Payable (713,268) (4,813,969)
Net Position of Governmental Activities $ 44,176,353
See accompanying notes to the basic fmancial statements
- 24 -
CITY OF NAPOLEON, OHIO
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- 25 -
CITY OF NAPOLEON, OHIO
Statement of Revenues,Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2022
Special
Assessment
Bond Capital
General Retirement Improvement Aquatic Center
Revenues:
Property Taxes $ 308,319 $ 0 $ 0 $ 288,309
Payments in Lieu of Taxes 0 0 0 0
Municipal Income Tax 6,114,968 0 0 0
Other Local Taxes(kWh Tax) 488,712 0 0 0
Intergovernmental Revenues 375,398 0 749,226 7,906
Charges for Services 242,302 0 0 0
Licenses and Permits 78,783 0 0 0
Investment Earnings (1,015,480) 6,740 0 4,791
Fines and Forfeitures 124,225 0 0 0
All Other Revenue 219,S19 0 484,401 10,000
Total Revenue 6,936,746 6,740 1,233,627 311,006
Expenditures:
Current
Securiry of Persons and Property 3,748,786 0 0 0
Public Health and Welfare Services 107,677 0 0 0
Leisure Time Activities 0 0 0 105,195
Community Environment 39,000 0 0 0
Transportation 0 0 0 0
General Government 1,064,871 0 0 0
Capital Outlay 0 0 1,960,117 0
Debt Service:
Principal Retirement 0 0 0 170,000
Interest and Fiscal Charges 0 0 0 60,240
Total Expenditures 4,960,334 0 1,960,117 335,435
Excess(Deficiency)of Revenues
Over Eapenditures 1,976,412 6,740 (726,490) (24,429)
Other Financing Sources(Uses):
Sale of Capital Assets 30,147 0 0 0
Transfers In 66,520 0 1,535,437 0
Transfers Out (2,281,941) 0 (110,260) 0
Total Other Financing Sources(Uses) (2,185,274) 0 1,425,177 0
Net Change in Fund Balances (208,862) 6,740 698,687 (24,429)
Fund Balances at Beginning of Year 3,229,595 609,288 712,314 302,231
Increase in Inventory Reserve 842 0 0 0
N�nd Balances End of Year $ 3,021,575 $ 616,028 $ 1,4ll,001 $ 277,802
See accompanying notes to the basic fmancial statements
- 26 -
CITY OF NAPOLEON, OHIO
Other Total
Governmental Governmental
Funds Funds
$ 138,733 $ 735,361
33,301 33,301
0 6,114,968
0 488,712
1,019,257 2,151,787
834,875 1,077,177
0 78,783
38,307 (965,642)
129,449 253,674
90,169 804,089
2,284,091 10,772,210
585,303 4,334,089
0 107,677
1,065,938 1,171,133
13,002 52,002
557,918 557,918
338,502 1,403,373
0 1,960,117
100,000 270,000
18,850 79,090
2,679,513 9,935,399
(395,422) 836,811
9,568 39,715
872,004 2,473,961
(96,760) (2,488,961)
784,812 24,715
389,390 861,526
4,401,073 9,254,501
39,933 40,775
$ 4,830,396 $ 10,156,802
- 27 -
CITY OF NAPOLEON, 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 $ 861,526
Amourcts reported for governmental activities in the statemerct of
activities are different because
Governmental funds repart capital outlays as etcpenditures. However,
in the statement of acriviries,the cost of those assets is allocated over
their estimated useful lives as depreciation e�pense. This is the amount
by which depreciation exceeded capital outlay in the current period.
Capital Outlay 616,643
Depreciation (1,437,381) (820,738)
Governmental funds only report the disposal of assets to the eatent
proceeds are received from the sale. In the statement of activities,a
gain or loss is reported for each disposal. This is the amount of the loss
on the disposal of capital assets net of proceeds received. (47,650)
Revenues in the statement of activities that do not provide current
fmancial resources are not reported as revenues in the funds.
Municipal Income Taxes (220,954)
Property Taxes 16,895
Charges for Services (63,725)
Interest (4,301)
Intergovemmental (26,362) (298,447)
Contractually required contributions are reported as expenditures in
governmental funds;however,the statement of net position reports
these amounts as deferred outflows:
Pension 728,OO1
OPEB 9,110 737,111
Except far amounts reparted as deferred inflows/outflows,changes in the
net pension and OPEB liabilities are reported as pension/OPEB expense
in the statement of activities:
Pension 55,909
OPEB 399,960 455,869
(Continued)
- 28 -
CITY OF NAPOLEON, OHIO
The issuance of long-term debt provides current financial resources to
governmental funds,but has no effect on net position. In addition,
repayment of bond,note and capital lease principal is an e�penditure in the
govemmental funds,but the repayment reduces long-term liabilities in the
statement of net position.
Premium on General Obligation Bonds Amortized 4,761
General Obligation Bonds Principal 270,000 274,761
Interest is reported as an e�cnditure when due in the governmental
funds but is accrued on outstanding debt on the statement of net position.
Premiums are reported as revenues when the debt is first issued;
however,these amounts are deferred and amortized on the
statement of net position.
Accrued Interest Payable 897
Some etcpenses reparted on the statement of activities do not
require the use of current fmancial resources and,therefore, are
not reported as expenditures in governmental funds.
Increase in Supplies Inventory 40,775
Increase in Compensated Absences Payable (9,497) 31,278
The intemal service funds are used by management to charge the costs of
services to individual funds and is not reported in the statement of activities.
Governmental fund e�enditures and related internal service fund
revenues are eliminated. The net revenue(expense)of the internal
service funds are allocated among the governmental activities. 81,298
Change in NetPosition of'GovernmentalActivities $ 1,275,905
See accompanying notes to the basic financial statements
- 29 -
CITY OF NAPOLEON, OHIO
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- 30 -
CITY OF NAPOLEON, 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:
Property Taxes $ 300,850 $ 308,319 $ 308,319 $ 0
Municipal Income Tax 4,283,260 5,287,592 5,300,620 13,028
Other Local Taxes 490,000 488,712 488,712 0
IntergovernmentalRevenue 244,410 353,180 353,180 0
Charges for Services 369,300 348,743 348,743 0
Licenses and Permits 72,300 78,783 78,783 0
Investment Earnings 68,000 143,367 143,367 0
Fines and Forfeitures 151,000 123,628 123,628 0
All Other Revenues 183,040 214,131 214,131 0
TotalRevenues 6,162,160 7,346,455 7,359,483 13,028
Expenditures:
Current:
Security ofPersons andProperty 3,975,136 4,167,823 3,825,881 341,942
Public Health and Welfare Services 133,750 138,404 108,995 29,409
Community Environment 39,000 39,000 39,000 0
GeneralGovernment 1,371,192 1,871,159 1,140,955 730,204
TotalEapenditures 5,519,078 6,216,386 5,114,831 1,101,555
Excess(Deficiency)of Revenues
Over(Under)Eapenditures 643,082 1,130,069 2,244,652 1,114,583
Other Financing Sources(Uses):
Sale of Capital Assets 5,000 30,147 30,147 0
Transfers In 70,850 65,247 66,520 1,273
Transfers Out (1,737,522) (2,281,941) (2,281,941) 0
Total Other Financing Sowces(Uses): (1,661,672) (2,186,547) (2,185,274) 1,273
Net Change In Fund Balance (1,018,590) (1,056,478) 59,378 1,115,856
Fund Balance at Beginning of Year 2,482,108 2,482,108 2,482,108 0
Priar Year Encumbrances 96,005 96,005 96,005 0
Fund Balance at End of Year $ 1,559,523 $ 1,521,635 $ 2,637,491 $ 1,115,856
See accompanying notes to the basic financial statements
- 31 -
CITY OF NAPOLEON, OHIO
Statement of Net Position
Proprietary Funds
December 31, 2022
Business-Type Activities
Enterprise Funds
Electric Water Sewer
Assets:
Current Assets:
Cash and Cash Equivalents $ 14,577,464 $ 3,572,976 $ 5,483,200
Receivables:
Accounts 2,817,240 649,315 715,485
Interest 4,629 2,341 3,594
Special Assessments 0 4,523 76,001
Inventory of Supplies at Cost 1,031,034 416,604 70,936
Total CurrentAssets 18,430,367 4,645,759 6,349,216
Non Current Assets:
Capital Assets,Net 5,726,864 24,272,737 29,669,755
Net OPEB Asset 191,176 139,952 114,857
Inveshnent in Jo�t Venture 330,720 0 0
Total Non Current Assets 6,248,760 24,412,689 29,784,612
Total Assets 24,679,127 29,058,448 36,133,828
Deferred Outflows of Resources:
Pension 222,215 162,670 133,508
Total Deferred Outflows of Resources 222,215 162,670 133,508
Liabilities:
Current Liabilities:
Accounts Payable 1,368,277 52,992 51,219
Accrued Wages and Benefits 31,949 23,340 18,931
Compensated Absences Payable-Current 75,876 50,489 48,280
Accrued Interest Payable 0 5,273 2,869
Revenue Bonds-Current 0 405,000 175,000
Ohio Public Works Commission Loan-Current 0 0 25,000
Ohio Water Development Authority Loans-Cwrent 0 20,230 97,719
Water Pollution Control Loans-Cwrent 0 0 391,250
TotalCurrentLiabilities 1,476,102 557,324 810,268
- 32 -
CITY OF NAPOLEON, OHIO
Governmental
Activities
Internal Service
Sanitation Total Fund
$ 1,697,084 $ 25,330,724 $ 51,791
145,741 4,327,781 10
1,ll3 11,677 0
0 80,524 0
0 1,518,574 7,296
1,843,938 31,269,280 59,097
290,517 59,959,873 7,646
46,830 492,815 20,404
0 330,720 0
337,347 60,783,408 28,050
2,181,285 92,052,688 87,147
54,433 572,826 23,714
54,433 572,826 23,714
29,660 1,502,148 3,156
8,496 82,716 3,236
14,903 189,548 6,950
0 8,142 0
0 580,000 0
0 25,000 0
0 117,949 0
0 391,250 0
53,059 2,896,753 13,342
(Continued)
- 33 -
CITY OF NAPOLEON, OHIO
Statement of Net Position
Proprietary Funds
December 31, 2022
Business-Type Activities
Enterprise Funds
Electric Water Sewer
Long Term Liabilities:
Compensated Absences Payable 141,515 34,228 64,238
Net Pension Liability 530,663 388,475 318,825
Revenue Bonds Payable 0 3,837,075 3,675,928
OWDA Loans Payable 0 33,254 11,201,156
OPWC Loans Payable 0 0 125,000
Ohio Sewer&Water Rotary Commission Deferred Loan Payable 0 64,454 182,045
Water Pollution Control Loans Payable 0 0 2,850,798
WSLRA Loans Payable 0 14,371,605 0
Total Long-Term Liabilities 672,178 18,729,091 18,417,990
Total Liabilities 2,148,280 19,286,415 19,228,258
Deferred Intlows of Resources:
Pension 659,841 483,036 396,436
OPEB 197,525 144,599 118,673
Total Deferred Intlows of Resources 857,366 627,635 515,109
Net Position:
Net Investment in Capital Assets 5,726,864 5,541,ll9 10,945,859
Unrestricted 16,168,832 3,765,949 5,578,ll0
Total Net Position $ 21,895,696 $ 9,307,068 $ 16,523,969
Adjustment to reflect the consolidation of internal
service fund activities related to the enterprise funds.
Net Posirion of Business-type Acriviries
See accompanying notes to the basic financial statements
- 34 -
CITY OF NAPOLEON, OHIO
Governmental
Activities
Internal Service
Sanitation Total Fund
26,480 266,461 1,673
129,994 1,367,957 56,632
0 7,513,003 0
0 11,234,410 0
0 125,000 0
0 246,499 0
0 2,850,798 0
0 14,371,605 0
156,474 37,975,733 58,305
209,533 40,872,486 71,647
161,634 1,700,947 70,420
48,385 509,182 21,081
210,019 2,210,129 91,501
290,517 22,504,359 7,646
1,525,649 27,038,540 (59,933)
$ 1,816,166 49,542,899 $ (52,287)
(44,444)
$ 49,498,455
- 35 -
CITY OF NAPOLEON, 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
Electric Water Sewer
Operating Revenues:
Charges for Services $ 17,227,055 $ 4,332,974 $ 4,264,410
Other Charges for Services 240,307 39,333 71,063
Total Operating Revenues 17,467,362 4,372,307 4,335,473
Operating Expenses:
Personal Services 953,929 719,363 606,485
Contractual Services 1,180,190 689,821 390,261
Purchased Power 13,547,535 0 0
Materials and Supplies 230,131 528,757 138,133
Utilities 78,588 300,348 157,039
Depreciation 399,418 1,062,361 872,547
Total Operating Expenses 16,389,791 3,300,650 2,164,465
OperatingIncome(Loss) 1,077,571 1,071,657 2,171,008
Nonoperating Revenue(Expenses):
Inveshnent Earnings 76,909 37,164 56,560
Interest Expense 0 (62,922) (ll3,914)
Loss on Sale of Capital Assets (35,637) 0 (6,864)
Other Local Taxes(kWh Tax) 105,031 0 0
Loss on Investment in Joint Venture (52,051) 0 0
Other Nonoperating Expense(kWh Paid to State) (105,473) 0 0
Total Nonoperating Revenues(Expenses) (11,221) (25,758) (64,218)
Income(Loss)Befare Transfers and Contributions 1,066,350 1,045,899 2,106,790
Transfers In 0 0 0
Capital Contributions 0 37,183 2ll,081
Change in Net Position 1,066,350 1,083,082 2,317,871
Net Position Beginning of Year 20,829,346 8,223,986 14,206,098
Net Position End of Year $ 21,895,696 $ 9,307,068 $ 16,523,969
Change in Net Position-Total Enterprise Funds
Adjustment to reflect the consolidation of internal
service fund activities related to the enterprise funds.
Change in Net Positioin-Business-type Activities
See accompanying notes to the basic financial statements
- 36 -
CITY OF NAPOLEON, OHIO
Governmental
Activities
Internal Service
Sanitation Total Fund
$ 874,675 $ 26,699,114 $ 64,682
34,859 385,562 271,319
909,534 27,084,676 336,001
248,308 2,528,085 83,126
511,957 2,772,229 10,949
0 13,547,535 0
127,191 1,024,212 148,360
2,133 538,108 688
22,914 2,357,240 340
912,503 22,767,409 243,463
(2,969) 4,317,267 92,538
18,280 188,913 0
0 (176,836) 0
0 (42,501) (6,045)
0 105,031 0
0 (52,051) 0
0 (105,473) 0
i8,aso �sz,9i�� �d,o4s�
15,3ll 4,234,350 86,493
0 0 15,000
0 248,264 0
15,3ll 4,482,614 101,493
1,800,855 45,060,285 (153,780)
$ 1,816,166 49,542,899 $ (52,287)
4,482,614
20,195
$ 4,502,809
- 37 -
CITY OF NAPOLEON, OHIO
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2022
Business-Type Activities
Enterprise Funds
Electric Water Sewer
Cash Flows from Operatin�Activities:
Cash Received from Customers $17,384,555 $4,300,092 $4,304,836
Cash Payments for Goods and Services (14,469,348) (1,576,064) (751,238)
Cash Payments to Employees (1,370,437) (1,051,991) (794,983)
Net Cash Provided(Used)
by Operating Activities 1,544,770 1,672,037 2,758,615
Cash Flows from Noncapital Financin,g Activities:
Transfers In from Other Funds 0 0 0
Receipts of Other Local Taxes 105,031 0 0
kWh Tax Paid to State (105,473) 0 0
Net Cash Provided(Used)by
Noncapital Financing Activities (442) 0 0
Cash Flows from Capital and
Related Financing Activities:
Acquisition and Construction of Assets (360,503) (432,468) (9,750,849)
Capital Contributions 0 2,223 501,904
OWDA Loan Issued 0 0 7,783,579
Principal Paid on Mortgage Revenue Bonds 0 (390,000) (170,000)
Principal Paid on
Ohio Public Warks Commission Loan 0 0 (25,000)
Principal Paid on
Ohio Water Development Authority Loans 0 (19,786) (205,945)
Principal Paid on
WPCLF Loan 0 0 (387,366)
Principal Paid on
WSLRA Loan 0 (452,898) 0
Interest Paid on All Debt 0 (71,208) (140,575)
Net Cash Used for Capital
and Related Financing Activities (360,503) (1,364,137) (2,394,252)
Cash Flows from Investing Activities:
ReceiptsofInterest 80,173 38,285 58,422
Net Cash Provided
by Investing Acrivities 80,173 38,285 58,422
Net Increase(Decrease)in Cash and Cash Equivalents 1,263,998 346,185 422,785
Cash and Cash Equivalents at Beginning of Year 13,313,466 3,226,791 5,060,415
Cash and Cash Equivalents at End of Year $14,577,464 $3,572,976 $5,483,200
- 38 -
CITY OF NAPOLEON, OHIO
Governmental
Activities
Internal Service
Sanitarion Totals Funds
$912,758 $26,902,241 $335,991
(623,160) (17,419,810) (163,571)
(325,423) (3,542,834) (173,509)
(35,825) 5,939,597 (1,089)
0 0 15,000
0 105,031 0
0 (105,473) 0
0 (442) 15,000
0 (10,543,820) 0
0 504,127 0
0 7,783,579 0
0 (560,000) 0
0 (25,000) 0
0 (225,731) 0
0 (387,366) 0
0 (452,898) 0
0 (211,783) 0
0 (4,118,892) 0
19,020 195,900 0
19,020 195,900 0
(16,805) 2,016,163 13,911
1,713,889 23,314,561 37,880
$1,697,084 $25,330,724 $51,791
(Continued)
- 39 -
CITY OF NAPOLEON, OHIO
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2022
Business-Type Activities
Enterprise Funds
Electric Water Sewer
Reconciliation of Operating Income(Loss)to Net Cash
Provided(Used)bv Operating Activities:
OperatingIncome(Loss) $1,077,571 $1,071,657 $2,171,008
Adjustments to Reconcile Operating Income(Loss)
to Net Cash Provided(Used)by Operating Activities:
Depreciarion Ezpense 399,418 1,062,361 872,547
Changes in Assets and Liabilities:
Decrease(Increase)in Accounts Receivable (82,319) (71,870) (30,502)
Increase in Deferred Outflows of Resources (42,695) (29,866) (30,710)
Decrease(Increase)in Inventary (72,661) (63,754) (18,633)
Increase in Net OPEB Asset (79,429) (57,282) (50,870)
Increase(Decrease)in Accounts Payable 639,986 6,616 (47,172)
Decrease in Claims Payable (229) 0 0
Increase(Decrease)in Accrued
Wages and Beneflts 1,166 87 1,057
Decrease in Net Pension Liability (396,694) (297,574) (212,199)
Increase(Decrease)in Deferred Inflows of Resources 106,381 72,408 85,170
Increase(Decrease)in Compensated Absences (5,725) (20,746) 18,919
TotalAdjustments 467,199 600,380 587,607
Net Cash Provided(Used)
by Operating Activities $1,544,770 $1,672,037 $2,758,615
Schedule of Noncash Investing,Capital and Financing Activities:
As of December 31,2022,the Sewer Fund had outstanding liabilities of$34,522 for the purchase
of certain capital assets.
The Water Fund received capital contributions from various other sources in the
amount of $37,183.
See accompanying notes to the basic fmancial statements
-40 -
CITY OF NAPOLEON, OHIO
Governmental
Activities
Internal Service
Sanitarion Totals Funds
($2,969) $4,317,267 $92,538
22,914 2,357,240 340
3,224 (181,467) 20
(12,925) (116,196) (309)
0 (155,048) 689
(20,992) (208,573) (5,833)
18,121 617,551 (4,263)
0 (229) 0
2,912 5,222 (1,654)
(84,433) (990,900) (64,277)
36,496 300,455 (6,324)
i,aa� (s,�as� �ia,oi6�
(32,856) 1,622,330 (93,627)
($35,825) $5,939,597 ($1,089)
-41 -
CITY OF NAPOLEON, OHIO
Statement of Net Position
Fiduciary Funds
December 31, 2022
Custodial
Funds
Assets:
Cash and Cash Equivalents $ 2,413
Total Assets 2,413
Liabilities:
Intergovernmental Payable 2,413
Total Liabilities $ 2,413
See accompanying notes to the basic fmancial statements
-42 -
CITY OF NAPOLEON, OHIO
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended December 31, 2022
Custodial Funds
Additions:
Contriburions:
Fines,Licenses and Permits for Distribution 771,783
Total Additions 771,783
Deductions:
Distributions to Other Governments 771,783
Total Deductions 771,783
Net Change in Fiduciary Net Position 0
Net Position at Beginning of Year 0
Net Position End of Year $ 0
See accompanying notes to the basic financial statements
-43 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Napoleon, Ohio (the City)is a home rule municipal corporation created under the laws of the
State of Ohio. The City operates under its own Charter, which provides for a Council/Manager form of
government. The Charter was adopted November 7, 1950 and became effective January 1, 1952. The
Charter was amended by vote on November 7, 2000, and became effective January 1, 2001; and the
current Charter was amended by vote on November 8, 2016 and became effective January 1, 2018.
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 Accountin� and Financial Reporting Standards (GASB
Codification).
A. Reporting Entitv
The accompanying basic financial statements comply with the provisions of GASB Statement
No. 14, "The Financial Reporting Entity," as amended by GASB Statement No. 61 "The
Financial Reporting Entity: Omnibus; an amendment of GASB Statements No. 14 and No. 34," in
that the financial statements include all organizations, activities, functions and component units
for which the City (the primary government) is financially accountable. Financial accountability
is defined as the appointment of a voting majority of a legally separate organization's governing
body and either (1) the City's ability to impose its will over the organization, or (2) the potential
that the organization will provide a financial benefit to, or impose a financial burden on,the City.
Based on the foregoing, the City's financial reporting entity has no component units but includes
all funds, agencies, boards and commissions that are part of the primary government, which
include the following services: police and fire protection,parks and recreation,planning, zoning,
street maintenance and other governmental services. In addition, the City owns and operates a
water treatment and distribution system, a wastewater treatment and collection system, an electric
distribution system and provides refuse collection services all of which are reported as enterprise
funds.
1. Joint Ventures with Equity Interest
Ohio Municipal Electric Generation Agency Joint T�enture 2 (Omega JV-2) - The City is a
participant with thirty-six subdivisions within the State of Ohio in a joint venture to provide
supplemental reserve electric power to the participants on a cooperative basis. The Omega JV-2
was created for that purpose. The Omega JV-2 is managed by AMP which acts as the joint
venture's agent. See Note 16 "Joint Ventures."
-44 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Reporting Entitv(Continued)
1. Joint Ventures with Equity Interest(Continued)
Ohio Municipal Electric Generation Agency Joint T�enture 5 (Omega JV-S) - The City is a
participant with forty-two subdivisions within the State of Ohio in a joint venture to construct a
hydroelectric plant and associated transmission facilities in West Virginia on the Ohio River at
the Belleville Locks and Dam and receive electricity from its operation. The Omega JV-5 was
created for that purpose. See Note 16 "Joint Ventures."
Ohio Municipal Electric Generation Agency Joint T�enture 6 (Omega JV-6) - The City is a
participant with ten subdivisions within the State of Ohio in a distributive generation project
using wind turbine technology. The Omega JV-6 was created for that purpose. See Note 16
"Joint Ventures."
Prairie State Energy Campus (the `PSEC Ownership Interest") - The City is a participant with
sixty-eight subdivisions within the State of Ohio in a planned 1,600 MW coal-fired power plant
and associated facilities in southwest Illinois. The PESC was created for that purpose. See Note
16 "Joint Ventures."
AMP Fremont Energy Center (AFEC) - The City is a participant in a non-binding memorandum
of understanding (MOU) with FirstEnergy Corp. regarding the Fremont Energy Center
("AFEC"). AFEC is a 707 MW natural gas fired combined cycle generation plant with a Base
Capacity of 512 MW, located near the City of Fremont, Ohio. See Note 16 "Joint Ventures."
Combined Hydroelectric Projects - The City is a participant with seventy-nine subdivisions
within the State of Ohio in a distributive generation project using three hydroelectric projects.
The Combined Hydroelectric Projects was created for that purpose. See Note 16 "Joint
Ventures."
Meldahl Hydroelectric Project (the "Meldahl Project) - The City is a participant with forty-
seven subdivisions within the State of Ohio in a distributive generation project using 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. See Note 16 "Joint Ventures."
Napoleon Solar - The City is a participant with three subdivisions within the State of Ohio in a
3.54 MW solar energy generation field on a brownfield area, including on top of an old land fill,
in Napoleon, Ohio. The AMP, Inc. Solar Project 1 was created for that purpose. See Note 16
"Joint Ventures."
Greenup Hydroelectric Project - The City is a participant within the State in the Greenup
Hydroelectric Facility. See Note 16 "Joint Ventures."
-45 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Reporting Entitv(Continued)
2. Joint Ventures without Equity Interest
Community Improvement Corporation - The City, along with Henry County is a participant in the
joint venture to operate the Community Improvement Corporation (CIC). The corporation's
duties are to advance, encourage and promote the industrial, economic, commercial and civic
development of the City of Napoleon and Henry County. See Note 16 "Joint Ventures."
3. Jointly Governed Or�anization:
Maumee Valley Planning Organization - The City is a member of the Maumee Valley Planning
Organization (MVPO), which is a jointly governed organization between Defiance, Fulton,
Henry, Paulding, and Williams Counties and the respective townships and municipalities in each
of those counties. The purpose of the MVPO is to act as a joint regional planning commission to
write and administer Community Development Block Grants (CDBG) and help with housing
rehabilitation in the area.
B.Basis of Presentation - Fund Accounting
The accounting policies and financial reporting practices of the City conform to generally
accepted accounting principles as applicable to governmental units.
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, deferred outflows of resources,
liabilities, deferred inflows of resources, fund equity, revenues and expenditures (expenses). The
various funds are summarized by type in the basic financial statements. The following fund types
are used by the City:
-46 -
CITY OF NAPOLEON, 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 Accounting (Continued)
Governmental Funds
Governmental Funds - Governmental funds are those funds through which most governmental
functions are typically financed. The acquisition, use and balances of the City's expendable
financial resources and the related current liabilities and deferred inflows of resources (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 general laws of Ohio and the limitations of the City
Charter.
Special Assessment Bond Retirement Fund - To accumulate special assessment revenues
collected by the County Treasurer and remitted to the City by the County Auditor for payment of
assessment bonds.
Capital Improvement Fund - To account for financial resources, mainly income tax revenue
transferred into the fund,used for the major capital projects undertaken by the City.
Aquatic Center Fund- To account for financial resources used for the construction of the Aquatic
Center.
The other governmental funds of the City account for grants and other resources whose use is
restricted to a particular purpose.
Proprietary Funds
All proprietary funds are accounted for on an "economic resources" measurement focus. This
measurement focus provides that all assets and deferred outflows of resources and all liabilities
and deferred inflows of resources associated with the operation of these funds are included on the
balance sheet. Proprietary fund type operating statements present increases (i.e., revenues) and
decreases (i.e., expenses)in total 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, whereby 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 and non-major enterprise funds are:
Electric Fund—(Major)—To account for the operation of the City's electric distribution service.
-47 -
CITY OF NAPOLEON, 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 Accounting (Continued)
Water Fund—(Major)—This fund is used to account for the operation of the City's water service.
Sewer Fund — (Major) — This fund is used to account for the operation of the City's sanitary
sewer service.
Sanitation Fund — (Non-major) — This fund is used to account for the operation of the City's
sanitation(refuse)pickup and disposal service.
Internal Seroice Funds (Non-major) - These funds are used to account for the financing of goods
or services provided by one department or agency to other departments or agencies of the City, or
to other governments, on a cost-reimbursement basis. The City has one internal service fund, the
Garage Fund. This fund is used to account for monies received from city departments to cover
the cost of servicing the vehicles of the City departments.
Fiduciary Funds
These funds are used to account for assets held by a governmental unit in a trustee capacity or as
an agent for individuals, private organizations, other governmental units, and/or other funds. The
City's only fiduciary fund is a custodial fund. This fund is used to account for the collection and
distribution of municipal court fines and forfeitures.
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. The internal service fund is eliminated to avoid "doubling up" revenues and
expenses; however, the interfund services provided and used are not eliminated in the process of
consolidation.
-48 -
CITY OF NAPOLEON, 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 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 financial statements are prepared.
Governmental fund financial statements therefore include a reconciliation with brief explanations
to better identify the relationship between the government-wide statements and the statements for
governmental funds.
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 Stateinents — 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 and deferred outflows of resources
and current liabilities and deferred 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 financing uses) of current financial
resources.
All proprietary fund types are accounted for on a flow of economic resources measurement focus.
With this measurement focus, all assets and deferred outflows of resources and all liabilities and
deferred inflows of resources associated with the operation of these funds are included on the
statement of net position. The statement of changes in fund net position presents increases (i.e.,
revenues) and decreases (i.e., expenses) in total net position. The statement of cash flows
provides information about how the City finances and meets the cash flow needs of its proprietary
activities.
-49 -
CITY OF NAPOLEON, 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
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.
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. Revenue resulting from exchange transactions, in which each party
gives and receives essentially equal value, is recorded on the modified accrual basis when the
exchange takes place and the resources are 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 specific 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 withheld by employers, interest on investments, state levied
locally shared taxes (including motor vehicle license fees and local government assistance).
Income taxes other than those withheld by employers, licenses, permits, charges for service and
other miscellaneous revenues are recorded as revenue when received in cash because generally
this revenue is not measurable until received.
Special assessment installments, which are measurable, but not available at December 31, are
recorded as deferred inflow of resources —unavailable amount. Property taxes measurable as of
December 31, 2022, but which are not intended to finance 2022 operations and delinquent
property taxes, whose availability is indeterminate, are recorded as deferred inflow of resources
as further described in Note 6 "Taxes".
The accrual basis of accounting is utilized for reporting purposes by the proprietary funds and
fiduciary funds. Revenues are recognized when they are earned and expenses recognized when
incurred.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E.Deferred Inflows/Outflows of Resources
In addition to assets, the statements of financial position will sometimes report a separate section
for deferred outflows of resources. Deferred outflows of resources, represents a consumption of
net assets that applies to future periods and will not be recognized as an outflow of resources
(expenses/expenditures) until then. For the City, deferred outflows related to pension/OPEB are
explained in notes 11 and 12.
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 periods and so
will not be recognized as an inflow of resources (revenue) 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. 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, charges for services, interest 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 of resources related to
pension/OPEB are reported on the government-wide statement of net position. (See Note 11 and
12)
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. 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
ardinance, 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 only funds required to be
reported in the basic financial statements are the general fund and any major special revenue
funds. The primary level of budgetary control is at the object level within each department.
Budgetary modifications may be made only by ordinance of the City Council.
1. Tax Bud�et
The Director of Finance and the City Manager submit 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.
The budget commission has waived the filing of the budget, however, schedules A and B of the
budget must be submitted to the commission.
- 52 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Budgetary Process (Continued)
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 fiscal 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, �he 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 statement reflect the amounts in the final amended official certificate of estimated
resources issued during 2022.
3. Appropriations
A temporary appropriation ordinance to control expenditures may be passed on or about January
1 of each year for the period January 1 through March 31. An annual appropriation ordinance
must be passed by April 1 of each year for the period January 1 through December 31. 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. The allocation of
appropriations among departments and objects within a fund may be modified during the year by
an ordinance of City Council. During 2022, several supplemental appropriations were necessary
to budget the use of contingency funds, intergovernmental grant proceeds and capital
improvement projects. 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--General Fund" are provided
on the budgetary basis to provide a comparison of actual results with the final budget, including
all amendments and modifications.
- 53 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Budgetary Process (Continued)
4. Encumbrances
As part of formal budgetary control, 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 and to determine and maintain legal
compliance. However, on the GAAP basis of accounting, encumbrances do not constitute
expenditures or liabilities and are reported in the fund balances for governmental funds in the
accompanying basic financial statements.
5. Lapsin_g of 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.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Budgetary Process (Continued)
6. Budgetary Basis of Accounting
The City's budgetary process accounts for certain 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 a 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.
On the budgetary basis investment earnings are recognized when realized, whereas on a GAAP
basis unrealized gains and losses are recognized when investments are adjusted to fair value.
The following table summarizes the adjustments necessary to reconcile the GAAP basis
statements to the budgetary basis statements for the general fund:
Net Change In Fund Balance
General
Fund
GAAP Basis(as reported) ($208,862)
Increase(Decrease):
Accrued Revenues at
December 31,2022
received during 2023 (1,686,020)
Accrued Revenues at
December 31,2021
received during 2022 816,759
Accrued Expenditures at
December 31,2022
paid during 2023 247,427
Accrued Expenditures at
December 31,2021
paid during 2022 (200,021)
2021 Adjustment to Fair Value 27,131
2022 Adjustment to Fair Value 1,131,716
Outstanding Encumbrances (68,752)
Budget Basis $59,378
- 55 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Cash and Cash Equivalents
Cash and cash equivalents include amounts in demand deposits, repurchase agreements, the State
Treasury Asset Reserve (STAR Ohio) and certificates of deposit with original maturity dates of
three months or less. The STAR Ohio is considered an investment for purposes of GASB
Statement No. 3,but it is reported as a cash equivalent in the basic financial statements because it
is a highly liquid instrument which is readily convertible to cash. The City pools its cash for
investment and resource management purposes. Each fund's equity in pooled cash and
investments represents the balance on hand as if each fund maintained its own cash and
investment account. For purposes of the statement of cash flows, the proprietary funds' shares of
equity in pooled certificates of deposit are considered to be cash equivalents. See Note 5, "Cash,
Cash Equivalents and Investments."
H.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 5, "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
$25 million. STAR Ohio reserves the right to limit the transaction to $50 million, requiring the
excess amount to be transacted the following business day(s), but only to the $50 million limit.
All accounts of the participant will be combined for these purposes.
- 56 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I.Inventory
Inventory is stated at cost (first-in, first-out) in the governmental funds and at the lower of cost or
market in the proprietary funds. The costs of inventory items are recorded as expenditures in the
governmental funds when purchased and as expenses in the proprietary funds when used.
J. Capital Assets and Depreciation
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.
Capital assets are defined by the City as assets with an initial, individual cost of more than
$7,500.
1. Property,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). 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.
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. All
infrastructure acquired prior to the implementation of GASB Statement No. 34, `Basic Financial
Statements — and Management's Discussion and Analysis —for State and Local Governments",
has been reported.
2. Property,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.
- 57 -
CITY OF NAPOLEON, 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 (Continued)
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 usefullives:
Governmental and
Business-Type Activities
Description Estimated Lives (in years)
Buildings 25
Improvements other than Buildings/Infrastructure 10 - 50
Machinery, Equipment, Vehicles,Furniture and Fixtures 5 -25
K.Long-Term Debt
Long-term liabilities are being repaid from the following funds:
Obligation Fund
General Obligation Bonds General Obligation Bond Retirement Fund
Water Fund
Mortgage Revenue Bonds Sewer Fund, Water Fund
Special Assessment Bonds Special Assessment Bond Retirement Fund
with Governmental Commitment Sewer Fund
Long-Term Note Water Fund
Ohio Public Works Special Assessment Bond Retirement Fund
Commission Loans Sewer Fund
OWDA Loans Water Fund, Sewer Fund
OSWRC Loans Sewer Fund, Water Fund
WPCLF Loans Sewer Fund
WSLRA Loans Water Fund
Payable to Joint Venture Electric Fund
Pension Liability/OPEB Liability General Fund
Electric Fund
Water Fund
Sewer Fund
Sanitation Fund
Central Garage Rotary Fund
Compensated Absences General Fund
Street Construction, Maintenance, and
Repair Fund
Recreation Fund
Electric Fund
Water Fund
Sewer Fund
Sanitation Fund
Central Garage Rotary Fund
- 58 -
CITY OF NAPOLEON, 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
Employees of the City earn vacation leave at various rates within limits specified under collective
bargaining agreements or under statute.
The rate of cash compensation for sick leave payout varies within specified limits under
collective bargaining agreements or under law. Employees are paid 25% of the accumulated sick
time upon retirement. Employees are eligible for retirement at age 60 with 5 years of service, age
55 with 25 years of service, and any age with at least 30 years of service. Compensation for sick
leave is paid at the employee's full rate of pay at the time of termination or retirement.
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, that portion of unpaid compensated absences that has matured 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"Matured Compensated Absences Payable." In
the government wide statement of net position, "Matured Compensated Absences Payable" is
recorded within the "Due within one year" account and the long-term portion of the liability is
recorded within the "Due in more than one year" account. Compensated absences are expensed
in the proprietary funds when earned and the related liability is reported within the fund.
M. Net Position
Net position represents the difference between assets plus deferred outflows and liabilities plus
deferred inflows. 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 their use either through the enabling legislation adopted by the City ar
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.
- 59 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. 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 ar 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.
O.Pensions/Other Postemplovment Benefits (OPEB)
For purposes of ineasuring the net pension/OPEB liability, 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 positon have been determined on the same basis as they are reported by the
pension/OPEB plan. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. The
pension/OPEB plans report investments at fair value.
- 60 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. 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.
Transfers between governmental and business-type activities on the government-wide statements
are reported in the same manner as general revenues. In addition, interfund transfers between
governmental funds are eliminated for reporting on the government-wide financial statements.
Only transfers between governmental activities and business-type activities are reported on the
statement of activities.
Q.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.
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 water treatment and
distribution, wastewater collection and treatment, maintenance of storm water collection systems,
electric generation and collection of solid waste refuse. 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.Extraordinary and Special Items
Extraordinary items are transactions or events that are both unusual in nature and infrequent in
occurrence. Special items are transactions or events that are within the control of the City
Council and that are either unusual in nature or infrequent in occurrence. Neither type of
transaction occurred during fiscal year 2022.
T.Fair Value
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 classified 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.
- 61 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 2—CHANGES 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
financing 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.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 3 -COMPLIANCE AND ACCOUNTABILITY
Funtl Defzcit- The fund deficit at December 31, 2022 of$2,800 in the Fire Facility Training Grant Fund
(capital project fund) arose from the recognition of expenditures on the modified accrual basis of
accounting which are greater than expenditures recognized on the budgetary basis and the posting of an
interfund loan payable. The deficit does not exist under the cash basis of accounting. The General Fund
provides transfers when cash is required, not when accruals occur.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 4-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 maj or governmental
funds and all other governmental funds are presented below:
Special Assessment Capital Aquatic Other Total
General Bond Retirement Improvement Center Governmental Governmental
Fund Balances Fund Fund Fund Fund Funds Funds
Nonspendable:
Supplies Inventory $8,455 $0 $0 $0 $363,142 $371,597
Undaimed Monies I 1,223 0 0 0 0 11,223
TotalNonspendable 19,678 0 0 0 363,142 382,820
Restricted:
Special Assessment Debt Service Payments 0 616,028 0 0 0 616,028
Oakwood/American TIF 0 0 0 0 27,756 27,756
Street Construction and Maintenance 0 0 0 0 945,328 945,328
State Highway Improvements 0 0 0 0 86,467 86,467
Motor Vehicle License Tax 0 0 0 0 475,653 475,653
Cemetery 0 0 0 0 68,944 68,944
Police Pension 0 0 0 0 8A,406 88,406
Fire Pension 0 0 0 0 41,027 41,027
HoteVMotel 0 0 0 0 27,340 27,340
Fire Fquipment 0 0 0 0 518,866 518,866
Fire Claims Loss 0 0 0 0 94,772 94,772
CDBG Grant 0 0 0 0 47,995 47,995
Indigent Drivers Alcohol Treatment 0 0 0 0 66,089 66,089
Law Enforcement and Education 0 0 0 0 1,831 1,831
LawEnforcement 0 0 0 0 1,189 1,189
Court Computenzation 0 0 0 0 20Q097 200,097
Mandatory Drug Fine 0 0 0 0 19,553 19,553
Municipal Probation Service 0 0 0 0 157,116 157,116
Aquatic Center 0 0 0 277,802 0 277,802
One Ohio 0 0 0 0 44 44
Probation Officer Grant 0 0 0 0 22,283 22,283
CourtImprovement 0 0 0 0 209,980 209,980
HandicapParking 0 0 0 0 1,100 1,100
Certified Police Training 0 0 0 0 19,004 19,004
Indigent Drivers Interlock/Alcohol 0 0 0 0 78,501 78,501
Justice Reinvestment Grant 0 0 0 0 18,926 18,926
TotalRestricted 0 616,028 0 277,802 3,218,267 4,112,097
Committed:
Special Events 4,226 0 0 0 0 4,226
Economic Development 986 0 0 0 0 986
Employee Benefits 8,378 0 0 0 0 8,378
EMS Transport Service 0 0 0 0 482,960 482,960
Recreation 0 0 0 0 678,515 678,515
Shelter House Facility Repair 0 0 0 0 6,231 6,231
Capitallmprovement 0 0 1,411,001 0 0 1,411,001
CIP 0 0 0 0 72,437 72,437
Total Committed 13,590 0 1,411,001 0 1,240,143 2,664,734
Assigned:
Encumbrances for Purchase Orders 68,755 0 0 0 0 68,755
Debt Service 0 0 0 0 11,644 ll,644
Total Assigned 68,755 0 0 0 11,644 80,399
Unassigned 2,919,552 0 0 0 (2,800) 2,916,752
TotalFundBalances $3,021,575 $616,028 $1,411,001 $277,802 $4,830,396 $1Q156,802
- 64 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 5-CASH, CASH EQUIVALENTS AND INVESTMENTS
Cash resources of several individual funds are combined to form a pool of cash and investments.
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 ar 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.
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;
This space intentionally left blank.
- 65 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 5-CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
• 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).
• Certain bankers' acceptances and commercial paper notes for a period not to exceed one
hundred and eighty days from the date of purchase in an amount not to exceed twenty-five
percent of the interim moneys available for investment at any one time.
A.Deqosits
Custodial credit risk is the risk that, in the event of a bank failure, the City's deposits may not be
returned. The City's policy is to place deposits with major local banks.
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 market value at all times shall be at least 105 percent of the deposits being
secured, or participation in the Ohio Pooled Collateral System (OPCS), a collateral pool of
eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to
secure the repayment of all public monies deposited in the financial institution. OPCS requires
the total market value of the securities pledged to be 102 percent of the deposits being secured or
a rate set by the Treasurer of State.
- 66 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 5-CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
A.Deposits (Continued)
At year end the carrying amount of the City's deposits was $6,635,316, including $2,500 of cash
on hand, and the bank balance was $6,395,848. Federal depository insurance covered $342,996
of the bank balance and $6,052,852 was exposed to custodial risk and was collateralized with
securities held by the pledging financial institutions trust department or agent but not in the City's
name and securities held in the Ohio Pooled Collateral System.
B.Investments
The City's investments at December 31, 2022 are summarized below:
Investment
Maturities
Fair Value (in Years)
Fair Value Credit Ratin� Hierarchy less than 1 1-3 3-5
U.S.Treasury Notes $6,361,771 AAA'/Aaa� Level l $1,925,860 $2,042,185 $2,393,726
U.S.Treasury Bonds 243,028 AAA'/Aaa� Level 1 0 243,028 0
Commercial Paper 1,491,005 AAA'/Aaa� Level l 1,491,005 0 0
FFCB 2,799,713 AAA'/Aaa� Leve12 491,580 1,486,002 822,131
FHLB 2,280,325 AAA`/Aaa� Leve12 0 876,152 1,404,173
FHLMC 825,865 AAA'/Aaa� Leve12 601,967 223,898 0
FNMA 2,458,181 AAA'/Aaa� Leve12 0 2,458,181 0
STAR Ohio 4,327,344 AAAm' N/A 4,327,344 0 0
Negotiable CD's 6,817,682 N/A Level 1 4,237,351 2,358,780 221,551
TotalInvestments $27,604,914 $13,075,107 $9,688,226 $4,841,581
' Standard&Poor's
�Moody's Investor Service
Interest Rate Risk— The City's investment policy limits security purchases to those that mature
within five years of settlement date with an average weighted maturity not to exceed two years.
Credit Risk— The City's investments in U.S. Treasury Notes, Freddie MAC, FFCB, FHLB and
FNMA were rated AAA and Aaa by Standard & Poor's and Moody's Investor Services,
respectively. While the City has no formal investment policy, the City addresses credit risk by
limiting investments to the safest types of securities,pre-qualifying financial institutions,brokers,
intermediaries and financial advisors and by diversifying the investment portfolio so that potential
losses on individual securities do not exceed income generated from the remaining portfolio. The
negotiable certificates of deposit were not rated.
- 67 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 5-CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
B.Investments (Continued)
Custodial Credit Risk—For an investment, custodial credit risk is the risk that, in the event of the
failure of the counterparty, 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's investments in U.S.
Treasury Notes, U.S. Treasury Bonds, Commercial Paper, FFCB, FHLB, FHLMC and FNMA in
the amounts of $6,361,771, $243,028, $1,491,005, $2,799,713, $2,280,325, $825,865and
$2,458,181 respectively are exposed to custodial credit risk as they are uninsured, unregistered,
and held by the counterparty's trust department or agent in the City's name. The City has no
investment policy dealing with custodial credit risk beyond the requirements of State statute
which prohibit payment for investments prior to the delivery of the securities representing the
investments to the treasurer or qualified trustee. At year end, the City's investment in negotiable
certificates of deposit of$6,817,682 was fully insured by FDIC.
Concentration of Credit Risk—The City places no limit on the amount the City may invest in one
issuer. The City has invested 23%in U.S. Treasury Notes, 1%in U.S. Treasury Bonds, 5%in
Commercial Paper, 10% in FFCB, 8% in FHLB, 3% in FHLMC, 9%in FNMA, 25%in
negotiable certificates of deposit and 16%in STAR Ohio.
NOTE6-TAXES
A. Property Taxes
Property taxes include amounts levied against all real estate and public utility property, and
tangible personal property used in business and 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 reappraised every six years, and
equalization adjustments are made in the third year following reappraisal. The last revaluation
was completed in 2019 and the equalization adjustment was completed in 2017. Real property
taxes are payable annually or semi-annually. The first payment is due January 20; the remainder
is payable by June 20.
- 68 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 6-TAXES (Continued)
A. Propertv Taxes (Continued)
Public utility real and tangible personal property taxes collected in one calendar year are levied in
the preceding calendar year on assessed values determined as of December 31 of the second year
preceding the tax collection year, the lien date. Certain public utility tangible personal property is
currently assessed at 100% of its true value. Public utility property taxes are payable on the same
dates as real properry described previously.
The County Treasurer collects property taxes on behalf of all taxing districts in the County
including the City of Napoleon. The County Auditor periodically remits to the City its portion of
the taxes collected.
The full tax rate for the City's operations far the year ended December 31, 2022 was $4.80 per
$1,000 of assessed value. The assessed value upon which the 2022 receipts were based was
$171,106,790. This amount constitutes $169,683,360 in real property assessed value and
$1,423,430 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 .48% (4.80
mills)of assessed value.
B.Income Tax
The City levies a tax of 1.5% 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 70% of the tax paid to another municipality to a
maximum of 1.5% 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.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 7—TAX ABATEMENT DISCLOSURES
As of December 31, 2022, the City of Napoleon provides tax incentives under a Community
Reinvestment Area Program(CRA).
Real Estate Tax Abatements
Pursuant to Ohio Revised Code Chapter 5709, the City established a Community Reinvestment area in
2010. The City of Napoleon authorizes incentives through the passage of public ordinances, based upon
each businesses investment criteria, and through a contractual application process with each business,
including proof that the improvements have been made. 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 properry tax bill. The
establishment of the CRA gave the City the ability to maintain and expand businesses located in 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 for office and industrial uses.
Income Tax Abatement Programs
The City of Napoleon entered into an economic development agreement with the Defiance Stamping
Company in 2015. The purpose of the agreement is to maintain Napoleon's competitiveness as a site for
location of new businesses and the expansion of existing businesses. Pursuant to Ohio Revised Code
Chapter 718 and City ordinance, the City provides an incentive to the Defiance Stamping 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.
Below is the information relevant to the disclosure of those programs for the year ended December 31,
2022.
Total Amount of
Ta�s Abated
(incentives Abated
For the Year 2022
TaxAbatcmcnt In Actual Dollars)
Just Busch Investments,LLC (2019-2029) (CRA)
-C�oss Dollar amount oftaYes abated during 2022 $2,756
- 7� -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 8-RECEIVABLES
Receivables at December 31, 2022 consisted of taxes, interest, accounts receivable, special assessments
and intergovernmental receivables arising from shared revenues. All receivables are considered
collectible in full due to the ability to foreclose for nonpayment of taxes and the stable condition of State
programs.
NOTE 9-TRANSFERS
Following is a summary of transfers in and out for all funds for 2022:
Transfers Out:
Capital Nonmajor
General Improvement Governmental
Transfers In: Fund Fund Funds Total
General Fund $0 $0 $66,520 $66,520
Capital Improvement Fund 1,535,437 0 0 1,535,437
Nonmajor Governmental Funds 731,504 ll0,260 30,240 872,004
Internal Service Fund 15,000 0 0 15,000
Total $2,281,941 $110,260 $96,760 $2,488,961
Transfers are used to (1) move unrestricted revenues collected in the General Fund to finance various
programs accounted for in other funds in accordance with budgetary authorizations; (2) move receipts
restricted to debt service from the funds collecting the receipts to the debt service fund as debt service
payments become due; (3) move revenues from the fund that statute or budget required to collect them to
the fund that statute or budget requires to expend them; (4) move revenues to the construction in progress
reserve fund for future capital purchase authorized by Council; and (5) move remaining balance in funds
that are being closed to the funds that made the original transfer.
All transfers were made in accordance with the Ohio Revised Code sections 5705.14, 5705.15, and
5705.16.
- 71 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 10-CAPITAL ASSETS
A. Governmental Activities Cauital Assets
Certain capital assets were misclassified in the prior period. Beginning balances have been
corrected to reflect proper classification. Summary by category of changes in governmental
activities capital assets at December 31, 2022:
Historical Cost:
December 31, December 31,
Class 2021 Transfers Additions Deletions 2022
CapUal assets not being depreciated:
Land $10,055,971 $0 $0 $0 $10,055,971
ConstructioninProgress 6,147,056 0 0 0 6,147,056
Subtotal 16,203,027 0 0 0 16,203,027
CapUal assets being depreciated:
Improvements 9,740,831 0 363,712 0 10,104,543
Buildings 3,814,174 0 0 0 3,814,174
Machinery and Equipment 7,212,496 (37,183) 252,931 (76,211) 7,352,033
Infrastructure 37,825,087 0 0 0 37,825,087
Subtotal 58,592,588 (37,183) 616,643 (76,211) 59,095,837
Total Cost $74,795,615 ($37,183) $616,643 ($76,211) $75,298,864
Accumulated Depreciation:
December 31, December 31,
Class 2021 Transfers Additions Deletions 2022
Improvements ($2,232,142) $0 ($392,899) $0 ($2,625,041)
Buildings (2,780,362) 0 (73,430) 0 (2,853,792)
Machinery and Equipment (4,283,911) 6,102 (301,272) 53,257 (4,525,824)
Infrastructure (19,423,647) 0 (669,780) 0 (20,093,427)
Total Depreciation ($28,720,062) $6,102 ($1,437,381) * $53,257 ($30,098,084)
Net Value: $46,075,553 $45,200,780
* Depreciation expenses were charged to governmental functions as follows:
Security of Persons and Property $142,683
Public Health and Welfare Services 23,102
Leisure Time Activiries 68,179
Transportation 1,123,337
General Government 80,080
Total Depreciation Expense $1,437,381
- 72 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 10-CAPITAL ASSETS (continued)
B.Business-Tvue Activities Capital Assets
Summary by category of changes in business-type activities capital assets at December 31, 2022:
Historical Cost:
December 31, December 31,
Class 2021 Transfers Additions Deletions 2022
Capital assets not being depreciated:
Land $245,525 $0 $0 $0 $245,525
Construction in Progress 4,262,817 0 8,220,551 0 12,483,368
Subtotal 4,508,342 0 8,220,551 0 12,728,893
Capital assets being depreciated:
Buildings 26,644,240 0 0 0 26,644,240
Improvements 47,570,617 0 1,076,815 0 48,647,432
Machinery and Equipment 7,502,356 (12,734) 498,651 (262,306) 7,725,967
Subtotal 81,717,213 (12,734) 1,575,466 (262,306) 83,017,639
Total Cost $86,225,555 ($12,734) $9,796,017 ($262,306) $95,746,532
Accumulated Depreciation:
December 31, December 31,
Class 2021 Transfers Additions Deletions 2022
Buildings ($8,306,411) $0 ($1,008,920) $0 ($9,315,331)
Improvements (20,758,287) 0 (960,873) 0 (21,719,160)
MachineryandEquipment (4,634,443) 9,193 (381,005) 254,087 (4,752,168)
Total Depreciation (�33,699,141) $9,193 ($2,350,798) $254,087 ($35,786,659)
Net Value: $52,526,414 $59,959,873
This space intentionally left blank.
- 73 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —DEFINED BENEFIT PENSION PLANS
Net Pension Liability
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 far 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 seroice, 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 Description—Ohio Public E�rcployees Retirement Syste�rc (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.
- 74 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —DEFINED BENEFIT PENSION PLANS (Continued)
OPERS provides retirement, disability, suroivor 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.or�/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 eligible to retire and members hrced on or after
after January 7,2013 ten years after January 7,2013 January 7,2013
State and Local State and Local State and Local
Age and Service Requirements: Age and Service Requirements: Age and Service Requirements:
Age 60 with 60 months of service credit Age 60 with 60 months of service credit Age 57 with 25 years of service credit
or Age 55 with 25 years of service credit or Age 55 with 25 years of service credit or Age 62 with 5 years of service credit
Formula: Formula: Formula:
2.2%of FAS multiplied by years of 2.2%of FAS mukiplied 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 benefit 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 far 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
first 30 years of service.
- 75 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —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 far 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 $698,468 for 2022.
- 76 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —DEFINED BENEFIT PENSION PLANS (Continued)
Plan Description—Ohio Police& Fire Pension Fund(OPF)
Plan Description - City full-time police and firefighters 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-£org ar 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 lst of each year. The
annual COLA increase is $360 under a Single Life Annuity Plan with proportional reductions for optional
payment plans.
- 77 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —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 $375,309 for 2022.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resouvices 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, 2021. 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 ofthe Net Pension Liability $2,877,659 $4,170,785 $7,048,444
Proportion of the Net Pension Liability-2022 0.033075% 0.066760%
Proportion of the Net Pension Liability-2021 0.033820% 0.065738%
Percentage Change (0.000745%) 0.001022%
Pension F�pense ($590,641) $246,850 ($343,791)
- 78 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —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 $359,845 $762,250 $1,122,095
Differences between e�ected and
actual e�erience 146,699 120,254 266,953
Change in proportionate share 0 174,792 174,792
City contributions subsequent to the
measurement date 698,468 375,309 1,073,777
Total Deferred Outflows of Resources $1,205,012 $1,432,605 $2,637,617
Deferred Inflows of Resources
Net difFerence between projected and
actual earnings on pension plan investments $3,422,862 $1,093,512 $4,516,374
Differences between e�ected and
actual eaperience 63,ll5 216,824 279,939
Change in proportionate share 92,187 52,368 144,555
Total Deferred Inflows ofResources $3,578,164 $1,362,704 $4,940,868
$1,073,777 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 ($518,462) $8,506 ($509,956)
2024 (1,203,809) (262,852) (1,466,661)
2o2s �so4,gss� �so,94s� �ggs,soo>
2026 �sa4,494� �dl,s9i� �6od,oss>
2027 0 91,474 91,474
Total ($3,071,620) ($305,408) ($3,377,028)
Actuarial Assumptions- OPERS
Actuarial valuations of an ongoing plan involve estimates of the values of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and cost trends. Actuarially determined amounts are
subject to continual review or modification as actual results are compared with past expectations and new
estimates are made about the future.
- 79 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —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 or Ad Hoc COLA(Pre 1/7/13 retirees) 3 percent simple
COLA or Ad Hoc COLA(Post]/7/13 retirees) 3 percent simple through 2022.2.05 percent simple,thereafter
Investment Rate of Retum 6.9 percent
Actuarial Cost Method Individual Faltry Age
December 31,2020
Wage Inflation 3.25 percent
Future Salary Increases,including inflation 3.25 to 10.75 percent including wage inflation
COLA or Ad Hoc COLA(Pre 1/7/13 retirees) 3 percent simple
COLA or Ad Hoc COLA(Post 1/7/13 retirees) 0.5 percent simple through 2021.2.15 percent simple,thereafter
Investment Rate ofReturn 7.2 percent
Actuarial Cost Method Individual Entry Age
Pre-retirement mortality rates are based on 130% of the Pub-20]0 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 all of the previously
described tables, the base year is 2010 and mortality rates for a particular calendar year are determined by
applying the MP-2020 mortality improvement scales (males and females)to all of these tables.
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.
- 80 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —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:
I.ong-Term E�ected
Target Real Rate of Return
Asset Class Allocation (Arithmetic)
Fixed Income 24.00 % 1.03 %
Domestic Equities 21.00 3.78
Real Fstate 11.00 3.66
Private Equiry 12.00 7.43
International Equities 23.00 4.88
Ris k 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 a�ailable 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 Proportionate Share of the Net Pension Liability 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:
Crrent
1°/o Decrease Discount Rate 1°/o Increase
(5.90%) (6.90%) (7.90%)
City's proportionate share
of the net pension liability $7,587,074 $2,877,659 ($1,041,201)
- 81 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —DEFINED BENEFIT PENSION PLANS (Continued)
Actuarial 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 1,2020, are presented below.
January ],2021 January 1,2020
Valuation Date January 1,2021,with actuarial liabilities January 1,2020,with actuarialliabilities
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 lnflation 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 les s 77 % 68 %
68-77 105 87
78 and up ll5 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.
- 82 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —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 F�tpected
Assct Class Allocation Rcal Rate of Rcturn
Cash and Cash Equivalents 0.00 % 0.00 %
Domestic Equity 21.00 3.60
Non-US Equity 14.00 4.40
Private Markets 8.00 6.80
Core Fixed Income * 23.00 1.10
High Yield Fixed Income 7.00 3.00
Private Credit 5.00 4.50
U.S.Inflation Linked Bonds* 17.00 0.80
MidstreamFnergy Infrastructure 5.00 5.00
Real A s s ets 8.00 5.90
Gold 5.00 2.40
Private Real Fstate 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.
- 83 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 11 —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 City's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate Net pension liability is sensitive to changes in the discount rate, and to illustrate the potential impact
the following table presents the net pension liability calculated using the discount rate of 7.50 percent, as
well as what the net pension liability would be if it were calculated using a discount rate that is one
percentage point lower(6.50 percent), or one percentage point higher(8.50 percent)than the current rate.
C�►rrent
1%Decrease Discount Rate 1%Increase
(6.50%) (7.50%) (8.50%)
City's proportionate share
ofthe netpension liability $6,185,216 $4,170,785 $2,493,261
This Space Intentionally Left Blank
- 84 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS
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
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.
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 seroice, 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 liabiliry 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.
- 85 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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.
- 86 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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 far
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 1,
2022) to participate in the OPERS health care program will continue to be eligible after January 1, 2022.
Eligibility requirements will 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.org/financial/reports.shtml, by writing to
OPERS, 277 East Town Street, Columbus, Ohio 43215-4642, or by calling (614) 222-5601 or 800-222-
7377.
Funding Policy - The Ohio Revised Code provides the statutory 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.
- 87 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (Continued)
The Board of Trustees is authorized to allocate a portion of the total employer contributions made into the
pension plan to the Section ll5 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 115 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 $9,ll0 for 2022.
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 1, 2021, to December 31, 2021. 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 ofthe Net OPEB Liability(Asset) ($1,036,709) $731,747 ($304,962)
Proportion ofthe Net OPEB Liability(Asset)-2022 0.033099% 0.066760%
Proportion ofthe Net OPEB Liability(Asset)-2021 0.033873% 0.065738°/o
Percentage Change (0.00077%) 0.001022%
OPEB F�pense ($892,608) $52,751 ($839,857)
- 88 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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
DeferredOutflows ofResources
Changes in assumptions $0 $323,895 $323,895
Differences between eYpected and
actual e�perience 0 33,288 33,288
Change in proportionate share 0 34,461 34,461
City contributions subsequent to the
measurement date 0 9,110 9,110
Total Deferred Outflows of Resources $0 $400,754 $400,754
Deferred Inflows of Res ources
Net difference between projected and
actualeamings on OPEBpIan investments $494,230 $66,101 $560,331
Changes in assumptions 419,649 84,988 504,637
Differences between eapected and
actual eaperience 157,254 96,709 253,963
Change in proportionate share 0 49,756 49,756
Total Deferred Inflows of Resources $1,071,133 $297,554 $1,368,687
$9,110 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 31:
zo23 ($662,439� �z2,�g� ($639,6sz�
zo24 �z29,�3i� i2,9�� �zi6,�s4�
2025 (107,985) 21,213 (86,772)
2026 (70,978) 5,479 (65,499)
2027 0 15,853 15,853
2028 0 10,055 10,055
2029 0 5,726 5,726
Total ($1,071,133) $94,090 ($977,043)
- 89 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (Continued)
Actuarial Assumptions- OPERS
Actuarial valuations of an ongoing plan involve estimates of the values of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and cost trends. Actuarially determined amounts are
subject to continual review or modification as actual results are compared with past expectations and new
estimates are made about the future.
Projections of 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 2.75 percent
Projected Salary Increases, 2J5 to 10.75 percent
including inflation including wage inflation
Single Discount Rate:
C�rrent measurement date 6.00 percent
Prior measurement date 6.00 percent
Investment Rate of Return:
C�rrent measurement date 6.00 percent
Prior measurement date 6.00 percent
Municipal Bond Rate:
C�rrent measurement date 1.84 percent
Prior measurement date 2.00 percent
Health Care Cost Trend Rate:
C�irrent 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 Fntry Age Nom�al
Pre-retirement mortality rates are based on 130°/o 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 all of the previously
described tables, the base year is 2010 and mortality rates for a particular calendar year are determined by
applying the MP-2020 mortality improvement scales (males and females)to all of these tables.
The most recent experience study was completed for the five year period ended December 31, 2020.
- 90 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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 E�ected
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 Parity 2.00 2.92
Other investments 7.00 1.93
Total 100.00 % 3.45 %
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 1.84 percent (Fidelity Index's "20-Year
Municipal GO AA Index").
- 91 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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 Ciry'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:
C�irrent
1%Decrease Discount Rate 1%Increase
(5.00°/a) (6.00%) (7.00%)
City's proportionate share
ofthe net OPEBliability(asset) ($609,684) ($1,036,709) ($1,391,151)
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.
C�irrent Health Care
Cost Trend Rate
1%Decrease Assumption 1%Increase
City's proportionate share
ofthe net OPEB liability(asset) ($1,047,914) ($1,036,709) ($1,023,421)
- 92 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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 or contractual funding limitations.
Actuarial calculations reflect a long-term perspective. For a newly hired employee, actuarial calculations
will take into account the employee's entire career with the employer and also take into consideration the
benefits,if any,paid to the employee after termination of employment until the death of the employee and
any applicable contingent annuitant. In many cases, actuarial calculations reflect several decades of
service with the employer and the payment of benefits after termination.
Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results,
are presented below.
Valuation Date January 1,2021,with actuarial 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 productiviry 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
- 93 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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
67orless 77 % 68 %
68-77 105 87
78 and up 115 120
Mortality for disabled retirees is based on the RP-2014 Disabled Mortaliry Tables rolled back to 2006,
adjusted according to the rates in the following table, and projected with the Buck Modified 2016
Improvement Scale.
Age Police Fire
59 or less 35 % 35 °/a
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:
- 94 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (Continued)
Target Long TermE�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
Core Fixed Income * 23.00 1.10
High Yeld Fixed Income 7.00 3.00
Private Credit 5.00 4.50
U.S.Inflation Linked Bonds* 17.00 0.80
MidstreamEnergyInfrastructure 5.00 5.00
Real Assets 8.00 5.90
Gold 5.00 2.40
Private Real Fstate 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 2.12 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.
- 95 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 12 -DEFINED BENEFIT OPEB PLANS (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 (1.84 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
ofthe net OPEB liability $919,824 $731,747 $577,150
Sensitivity of the City's PYoportionate Share of the Net OPEB Liability to Changes in the Health Care
Cost Ti^end 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
- 96 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 13—COMPENSATED ABSENCES
In accordance with GASB Statement No. 16, "Accounting for Compensated Absences," vacation and
compensatory time are accrued as liabilities when an employee's right to receive compensation is
attributable to services already rendered and it is probable the employee will be compensated through
paid time off or some other means, such as cash payments at termination or retirement. Leave time that
has been earned but is unavailable for use as paid time off or as some other form of compensation because
an employee has not met the minimum service time requirement, is accrued to the extent that it is
considered to be probable that the conditions for compensation will be met in the future.
Sick leave is accrued using the vesting method, whereby the liability is recorded on the basis of leave
accumulated by employees who are eligible to receive termination payments as of the balance sheet date,
and on leave balances accumulated by other employees who are expected to become eligible in the future
to receive such payments.
At December 31, 2022, the City's accumulated,unpaid compensated absences amounted to $1,177,900, of
which $721,891 is recorded as a liability of the Governmental Activities and $456,009 is recorded as a
liability of the Business-Type Activities.
- 97 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 14-LONG-TERM DEBT
Long-term debt of the City at December 31, 2022 was as follows:
Balance Balance Amount Due
Date ]nterest Maturity December3l, December3l, Within
Purchased Rate Description Date 2021 Additions (Reductions) 2022 One Yeac
Business-Type Activities:
Revenue Bonds:
2020 2.00% Water-Water System Improvement(Refunding 2004-2010) 2040 $2,25Q000 $0 ($29Q000) $1,960,000 $300,000
Premium 81,172 0 (4,272) 76,900 0
2021 3.00% WaterlmprovementBonds 2040 2,255,000 0 (1OQ000) 2,155,000 105,000
Premium 52,960 0 (2,787) SQ173 0
2021 5.00% Sewer-Sewer System Improvement(Refunding 2010-2012) 2041 3,900,000 0 (17Q000) 3,730,000 175,000
Premium 126,975 0 (6,046) 12Q929 0
TotalRevenueBonds 8,666,107 0 (573,105) 8,093,002 580,000
Ohio Sewec and Water Rotary Commission Deferred Loans:
1998 OSWRC-Palmer Ditch Pcoject 48,060 0 0 48,060 0
2005 OSWRC-North Pointe Water and Sewer Project 198,439 0 0 198,439 0
TotaIOSWRCLoans 246,499 0 0 246,499 0
Ohio Public Works Commission Loan(OPWC):
2008 WoodlawnAvenueImprovements 2029 175,000 0 (25,000) 150,000 25,000
Ohio Water Development A�thority Loans(OWDA):
2005 4.490°/ OWDA-Water-NPWaterlinelmprovements 2025 73,270 0 (19,786) 53,484 20,230
2005 4.490°/ OWDA-Sewer-E.Maumee Sewer Tap 2025 123,556 0 (48,271) 75,285 48,317
2005 4.490°/ OWDA-Sewer-NPSewerlinelmprovements 2025 222,599 0 (45,204) 177,395 49,402
2019 1.000% OWDA-Sewer-Williams Pump Starion Improvements 2040 1,292,920 0 (6Q470) 1,232,450 0
2020 0.000% OWDA-Sewer-WWTP Improvements Phase I 2026 2,030,167 6,347,021 0 8,377,188 0
2022 0.000"/o OWDA-Sewec-VanHyning Pumping Station Replacement 2025 52,000 1,436,558 (52,000) 1,436,558 0
Total Ol�io Water Development Authoriry Loans 3,794,512 7,783,579 (225,731) 11,352,360 117,949
Water Pollution Conhol Loan Fund Loans(WPCLF):
2008 EQ Basin Storm Water Retention 2030 3,629,414 0 (387,366) 3,242,048 391,250
WSRLA Loan:
2017 0.000% Water Plant Reconshuction 2048 14,824,503 0 (452,898) 14,371,605 0
Compensated Absences 461,734 456,009 (461,734) 456,009 189,548
Net Pension Liability 2,358,857 0 (990,900) 1,367,957 0
TotalBusiness-TypeLong-TermDebt $34,156,626 58,239,588 ($3,116,734) $39,279,480 $1,303,747
- 9c4 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 14-LONG-TERM DEBT (Continued)
Balance Balance AmountDue
Date Interest Maturity December3l, December3l, Within
Purchased Rate Description Date 2021 Additions (Reductions) 2022 One Year
Governmental Activities:
General Obligation Bonds:
2005 3.00%-5.00%Northcrest Drive 2025 $105,000 $0 ($25,000) $80,000 $25,000
2005 3.00%-5.00%SR 424 Resurfacing 2025 80,000 0 (2Q000) 6Q000 20,000
2010 4.50% Courthouse Renovations 2025 24Q000 0 (55,000) 185,000 60,000
2021 3.00% Municipal Pool 2040 3,86Q000 0 (170,000) 3,690,000 175,000
Premium 9Q462 0 (4,761) 85,701 0
Total General Obligation Bonds 4,375,462 0 (274,761) 4,100,701 280,000
Compensated Absences 724,410 721,891 (724,410) 721,891 350,615
NetPensionLiability 7,130,570 0 (1,450,083) 5,680,487 0
Net OPEB Liability 696,504 35,243 0 731,747 0
TotalGovernmentalActivitiesLong-TermDebt $12,926,946 S757,134 ($2,449,254) $11,234,826 $630,615
The fund balance of$616,028 in the Special Assessment Bond Retirement Fund at December 31, 2022 is
restricted for the retirement of outstanding special assessment debt. The Sewer Fund will be collecting
special assessments to retire the enterprise funds' special assessment debt.
Water Pollution Control Loan Fund Loans - During 2008, the City entered into two loan agreements
with the Water Pollution Control Loan Fund (WPCLF). These loans were related to sewer and storm
water improvements. The loan balance decreased by $387,366 during 2022 to a year-end balance of
$3,242,048.
Ohio Water Developinent Authority Loans - The City entered into two loan agreements with Ohio Water
Development Authority (OWDA) in 2005. This was on May 16, 2005 to finance the Sewer System
Extension and Improvement and the East Maumee Sewer Tap Project (loan number 4334) and the
Waterline Construction (loan number 4333) projects. The City entered into a loan agreement with
OWDA in 2019. This was for the Sewer Pump improvements at the Williams Station (loan number
8541). The City also entered into two loan agreements with OWDA in 2020 to finance the VanHyiung
Pumping Station Replacement and for Phase I improvements to the waste water treatment plant. The
sources of payments for the obligations are to be derived from user charges and assessments on property
owners.
- 99 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 14-LONG-TERM DEBT (Continued)
Refunding Bonds, Series 2021 - On January 7, 2021, the City refunded $4,253,600 of outstanding sewer
improvement bonds (the "2010 and 2012 Bonds") with an interest rate ranging from 1.0% - 5.0% with
$4,070,000 of refunding bonds issued in January 2021. The entire principal amount of the 2010 and 2012
bonds was paid off during 2021. The refunding was undertaken for the purpose of reducing interest rates
and debt service on the prior bonds. This transaction resulted in a net present value savings to the City of
$1,557,497.
Various Purpose Improvement Bonds, Series 2005 - The general obligation bonds were issued on July
28, 2005 for the purpose of retiring bond anticipation notes issued for Northcrest Drive and Road
Improvements. The bonds consist of$285,000 in serial bonds and$405,000 in term bonds.
The term bonds maturing on December 1, 2025 have interest rates of 5 percent per year, and are subject to
mandatory sinking fund redemption in part by lot pursuant to the terms of the mandatory sinking fund
requirements. The mandatory redemption is to occur on December 1 in the years 2020 through 2024
(with the balance of the $50,000 to be paid at stated maturity on December 1, 2025) at a redemption price
equal to 100% of the principal amount redeemed, plus accrued interest to the redemption date, according
to the following schedule:
Principal Amount to
Year be Redeemed
2023 45,000
2024 45,000
2025 50,000
- 100 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 14-LONG-TERM DEBT (Continued)
The bonds outstanding are general obligations of the City for which the full faith and credit of the City is
pledged for repayment. The source of payment for the obligations will be derived from a tax levied on
property.
2012 Revenue Bonds - During 2012, the City issued $1,100,000 worth of Sewer and Water Mortgage
Revenue bonds for work done on the City's water and sewer lines and reconstruction projects far
Clairmont Avenue. These bonds have an interest rate of 4.0%. A portion of the proceeds was used to pay
off the principal balances of existing notes that had previously been issued for work done on this project
and other improvements made to the City's Water and Sewer infrastructure. These bonds are scheduled
to mature in 2042 and will be retired from the City's Water and Sewer Funds through user charges.
2021 Revenue Bonds - During 2021, the City issued $2,360,000 worth of Water Mortgage Revenue
bonds for work done on the City's water lines. These bonds have an interest rate of 1.0% - 3.0%. These
bonds are scheduled to mature in 2040 and will be retired from the City's Water Fund through user
charges.
Ohio Public Works Commission Loans- The City entered into a loan agreement with Ohio Public Works
Commission (OPWC) on January 16, 2008, in the amount of$500,000, to finance the Woodlawn Avenue
Improvement Project. This OPWC loan carries a 0%interest rate.
2010 General Obligation Bond - During 2010, the City issued a $760,000 General Obligation Bond for
work done on the City's courthouse. This bond had an interest rate of 2.0% - 4.5% and is scheduled to
mature in 2025.
2021 General Obligation Bond- During 2021, the City issued a$4,040,000 General Obligation Bond for
work done on the City's municipal pool. This bond had an interest rate of 1.0% - 4.0% and is scheduled
to mature in 2040.
- 101 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 14-LONG-TERM DEBT (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:
General Mortgage
Obligation Bonds Revenue Bonds
Ycars Principal Interest Principal Interest
2023 $280,000 $75,722 $580,000 $132,129
2024 285,000 60,734 600,000 114,229
2025 305,000 47,790 530,000 94,577
2026 195,000 36,990 550,000 77,329
2027 195,000 35,040 550,000 71,829
2028-2032 1,010,000 145,400 1,975,000 288,273
2033-2037 1,070,000 91,245 1,825,000 184,378
2038-2042 675,000 20,635 1,235,000 46,720
Totals $4,015,000 $513,556 $7,845,000 $1,009,464
OWDA Loans OPWC Loans WPCLF Loans
Years Principal Interest Principal Interest Principal Interest
2023 $117,949 $13,331 $25,000 $0 $391,250 $27,523
2024 123,780 7,996 25,000 0 399,133 23,561
2025 64,435 2,668 25,000 0 403,135 19,559
2026 0 0 25,000 0 407,176 15,518
2027 0 0 25,000 0 4ll,258 11,436
2028-2031 0 0 25,000 0 1,230,096 13,612
Totals $306,164 $23,995 $150,000 $0 $3,242,048 $111,209
OWDA loan numbers 8541, 9341 and 8585 payable in the amounts of $1,232,450, $8,377,188
and $1,436,558 respectively, are not included in the above maturity tables. The construction has
started,but we do not have final amortization schedules from OWDA.
B.Deferred Loan Payable to the Ohio Sewer and Water Rotary Commission
The City has received advances to meet the portion of costs of sewer and water improvements to
be financed by assessments which collections are deferred or exempt pursuant to division (B) of
Section 6103.052 of the Ohio Revised Code. The City is responsible for collecting the
assessments for which the deferments were made when the property no longer meets the
exemption criteria.
- 102 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 15-RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; natural disasters, and injuries to employees. To manage this risk the City
participates in various jointly funded pools, both risk sharing and group rated, to provide separate and
distinct coverage for the risk involved. These pools are: the Public Entities Pool of Ohio (PEP), a risk-
sharing pool; Buckeye Ohio Risk Management Agency-Health Benefits, Inc., for Health and Group Life
Insurance Coverage (aka — BORMA Health Benefits, ar BORMA H & L); and Ohio Rural Water
Association-Group Rated Pool for Workers Compensation (aka—ORWA Workers Compensation Pool).
There have been no significant reductions in insurance coverage's from coverage's in the prior year. In
addition, settled claims resulting from these risks have not exceeded commercial insurance coverage's in
any of the past three fiscal years.
A. PEP Property and Casualtv Pool
The PEP Properry and Casualty Pool provides boiler and machinery, automobile liability,
automobile physical damage, general liability, crime and property, and public officials insurance
coverage up to specifics limits. There are currently 553 members in the PEP Pool. Member
contributions are calculated annually to produce a sufficient sum of money within the pool to
fund administrative expenses and to create reserves for claims. During 2021, the City paid
$211,944 for property and casualty coverage from 12/OU21 — ll/30/2022 and during 2022, paid
$249,012 for property and casualty coverage from 12/O1/22— 11/30/2023.
Casualty and Property Covera��e
APEEP provides PEP with an excess risk-sharing program. Under this arrangement, PEP retains
insured risks up to an amount specified in the contracts. At December 31, 2022, PEP retained
$350,000 casualty claims and$100,000 for property claims.
The aforementioned casualty and property reinsurance agreements do not discharge PEP's
primary liability for claims payments on covered losses. Claims exceeding coverage limits are
the obligation of the respective PEP member.
Financial Position
PEP's financial statements (audited by other accountants) conform with generally accepted
accounting principles, and reported the following assets, liabilities and retained earnings at
December 31, 2021 and 2020 (the latest information available):
2021 2020
Assets $ 59,340,305 $ 57,336,499
Liabilities (17,071,953� �16,156,805�
Net Position—Unrestricted $ 42,268,352 $ 41,179,694
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 15-RISK MANAGEMENT (Continued)
A. PEP Property and Casualtv Pool (Continued)
2021 2020
Number of Members 589 570
Unpaid Claims to be Billed in the $13.9 million $13.5 million
Future
The Pool's membership increased from 570 members in 2020 to 589 members in 2021.
The Pool uses reinsurance and excess risk sharing arrangements to reduce its exposure to loss.
These agreements permit recovery of a portion of its claims from reinsurers and a risk sharing
pool; however, they do not discharge the Pool's primary liability for such payments. The Pool is
a member of American Public Entity Excess Pool (APEEP), which, like PEP, is administered by
York Risk Pooling Services, Inc. (York). APEEP provides the Pool with an excess risk sharing
program. Under this arrangement, the Pool retains insured risks up to an amount specified in the
contracts. (At December 31, 2019 the Pool retained $500,000 for casualty claims and $250,000
for property claims). The Board of Directors and York periodically review the financial strength
of the Pool and other market conditions to determine the appropriate level of risk the Pool will
retain.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 15-RISK MANAGEMENT (Continued)
B.BORMA Health Benefits Pool
The BORMA Health Benefits Pool is for employee benefits and includes Life Insurance,
Accidental Death and Dismemberment Insurance, Health Insurance and Prescription Drug
Insurance. Each pool member has its own respective plan and coverage it has elected to provide
for its employees. Premiums paid into the pool by each member are based on the level of
coverage within each respective plan. In 2021, the pool included the following Ohio Cities and
Villages as members: Archbold, Bowling Green, Bucyrus, Carey, Defiance, Fayette, Fremont,
Hunting Valley, Hicksville, Napoleon, Oberlin, Oregon and Sandusky County Health
Department. Member contributions are calculated annually to produce a sufficient sum of money
within the pool to fund administrative expenses and to create reserves for claims. As of
December 31, 2021, the pool had total reported assets of $9,849,164. Each pool member
provides to its own employees all-available options listed in its own developed plan as covered by
the pool.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 15-RISK MANAGEMENT (Continued)
B.BORMA Health Benefits Pool(Continued)
For both the BORMA Property and Casualty, and the BORMA Health Benefits Pool's; individual
members are not considered"participants having equity interest" as defined by GASB Statement
No. 14 since members have no rights to any assets of the pool other than residual claims upon
dissolution. Both pools are a multi jurisdictional arrangement that have characteristics of a joint
venture but has additional features that distinguish it, for financial reporting purposes, from the
traditional joint ventures as defined in GASB Statement No. 14.
Both pools have the ability to require the member Cities to make supplemental payments in the
event reserves are not adequate to cover claims. The probability of this occurring is considered
remote due to the adequacy of the pool reserves and premium levels, therefore, no additional
amounts have been reserved in the financial statements. Audited financial statements are
maintained separately by each pool.
C. ORWA Workers Compensation Pool and UnemploVment Benefits
The City participates in the State of Ohio's Bureau of Workers Compensation Group Rating
Program as a member of the ORWA Workers Compensation Group Rated Pool. The ORWA
pool is one of many organized group rated pools, authorized by the State of Ohio, providing
lowered Workers Compensation Insurance Premiums to groups of like entities. Benefits received
by injured workers are established and controlled by the State of Ohio Bureau of Workers
Compensation. The City pays the State Workers Compensation a premium based upon a rate per
$100 of payroll paid in the prior year, plus administrative costs. The annual rate is a computed
factor(%) using the past five (5)years of loss history for both the City and the other members of
the group in the ORWA pool. During 2022, the City paid $98,952 for Workers Compensation
premiums. It should be noted that premiums are based on the prior fiscal year's (2015) gross
payroll. Starting in 2017, Workers' Compensation changed from a perspective billing to a
prospective billing basis. Premium payment is trued up in the next fiscal year.
D. State Unemployment Benefits
The City pays Unemployment Benefits Claims as they occur directly to the Ohio Department of
Job and Family Services of the State of Ohio. Political Subdivisions in Ohio are not required to
pay the unemployment tax. During 2022, the City paid $0 to the Ohio Department of Job and
Family Services for unemployment benefit claims.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES
A. Ohio Municipal Electric Generation A�encv Joint Venture 2 (Ome�a JV-2)
The City of Napoleon is a Non-Financing Participant and an Owner Participant with an
ownership percentage of.20% and shares participation with thirty-five other subdivisions within
the State of Ohio in the Ohio Municipal Electric Generation Agency (OMEGA JV2). Owner
Participants own undivided interests, as tenants in common, in the OMEGA JV2 Project in the
amount of their respective Project Shares. Purchaser Participants agree to purchase the output
associated with their respective Project shares, ownership of which is held in trust for such
Purchaser Participants.
Pursuant to the OMEGA JV2 Agreement, the participants jointly undertook as either Financing
Participants or Non-Financing Participants and as either Owner Participants or Purchaser
Participants, the acquisition, construction and equipping of OMEGA JV2, including such portions
of OMEGA JV2 as have been acquired, constructed or equipped by AMP and to pay or incur the
costs of the same in accordance with the JV2 Agreement.
OMEGA JV2 was created to provide additional sources of reliable, reasonably priced electric
power and energy when prices are high or during times of generation shortages or transmission
constraints, and to improve the reliability and economic status of the participants' respective
municipal electric utility system. The Project consists of 138.65 MW of distributed generation of
which 134.081MW is the participants entitlement and 4.569MW are held in reserve. On
dissolution of OMEGA JV2, the net assets will be shared by the participants on a percentage of
ownership basis. OMEGA JV2 is managed by AMP, which acts as the joint venture's agent.
During 2001, AMP issued $50,260,000 of 20 year fixed rate bonds on behalf of the Financing
Participants of OMEGA JV2. The net proceeds of the bond issue of $45,904,712 were
contributed to OMEGA JV2. On January 3, 2011, AMP redeemed all of the $31,110,000
OMEGA JV2 Project Distributive Generation Bonds then outstanding by borrowing on AMP's
revolving credit facility. As such, the remaining outstanding bond principal of the OMEGA JV2
indebtedness was reduced to zero, with the remaining principal balance now residing on the AMP
credit facility. The City's net investment and its share of operating results of OMEGA JV2 are
reported in the City's electric fund (an enterprise fund). The City's net investment in OMEGA
JV2 was ($2,065) at December 31, 2022. Complete financial statements for OMEGA JV2 may
be obtained from AMP or from the State Auditor's website at www.auditor.state.oh.us.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
A. Ohio Municipal Electric Generation A�encV Joint Venture 2 (Ome�a JV-2) (Continued)
The thirty-six participating subdivisions and their respective ownership shares at December 31,
2022 are:
Percent Kw Percent Kw
Municipality Ownership Entitlement Municipality Ownership Entitlement
Hamilton 23.87% 32,000 Grafton 0.79% 1,056
Bowling Green 1432% 19,198 Brewster 0.75% 1,000
Niles 11.49% 15,400 Monroeville 0.57% 764
Cuyahoga Falls 7.46% 10,000 Milan 0.55% 737
Wadsworth 5.81% 7,784 Oak Harbor 0.55% 737
Painesville 5.22% 7,000 Elmore 0.27% 364
Dover 5.22% 7,000 Jackson Center 0.22% 300
Galion 4.29% 5,753 Napoleon 0.20% 264
Amherst 3.73% 5,000 Lodi 0.16% 218
St. Mary's 2.98% 4,000 Genoa 0.15% 199
Montpelier 2.98% 4,000 Pemberville 0.15% 197
Shelby L89% 2,536 Lucas 0.12% 161
Versailles 1.24% 1,660 South Vienna 0.09% 123
Edgerton 1.09% 1,460 Bradner 0.09% 119
Yellow Springs 1.05% 1,408 Woodville 0.06% 81
Oberlin 0.91% 1,217 Haskins 0.05% 73
Pioneer 0.86% 1,158 Arcanum 0.03% 44
Seville 0.79% 1,066 Custar 0.00% 4
95.20% 127,640 4.80% 6,441
Grand Total 100.00% 134,081
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
B. Ohio Municipal Electric Generation Agencv Joint Venture 5 (Omega JV-5)
The City of Napoleon is a Financing Participant with an ownership percentage of 7.35%, and
shares participation with forry-one other subdivisions within the State of Ohio in the Ohio
Municipal Electric Generation Agency Joint Venture 5 (OMEGA JVS). Financing Participants
own undivided interests, as tenants in common, without right of partition in the OMEGA JVS
Project.
Pursuant to the OMEGA Joint Venture JVS Agreement (Agreement), the participants jointly
undertook as Financing Participants, the acquisition, construction, and equipping of OMEGA
JVS, including such portions of OMEGA JVS as have been acquired, constructed or equipped by
AMP.
OMEGA JVS was created to construct a 42 Megawatt (MW) run-of-the-river hydroelectric plant
(including 40MW of backup generation) and associated transmission facilities (on the Ohio River
near the Bellville, West Virginia Locks and Dam) and sells electricity from its operations to
OMEGA JVS Participants.
Pursuant to the Agreement, each participant has an obligation to pay its share of debt service on
the Beneficial Interest Certificates (Certificates) from the revenues of its electric system, subject
only to the prior payment of Operating & Maintenance Expenses (O&M) of each participant's
System, and shall be on a parity with any outstanding and future senior electric system revenue
bonds, notes or other indebtedness payable from any revenues of the System. On dissolution of
OMEGA JVS, the net position will be shared by the financing participants on a percentage of
ownership basis. Under the terms of the Agreement each participant is to fix, charge and collect
rates, fees and charges at least sufficient in order to maintain a debt coverage ratio equal to 110%
of the sum of OMEGA JVS debt service and any other outstanding senior lien electric system
revenue obligations. As of December 31, 2022 Napoleon has met their debt coverage obligation.
The Agreement provides that the failure of any JVS participant to make any payment due by the
due date thereof constitutes a default. In the event of a default, OMEGA JVS may take certain
actions including the termination of a defaulting JVS Participant's entitlement to Project Power.
Each Participant may purchase a pro rata share of the defaulting JVS Participant's entitlement to
Project Power, which together with the share of the other non-defaulting JVS Participants, is
equal to the defaulting JVS Participant's ownership share of the Project, in kilowatts ("Step Up
Power")provided that the sum of any such increases shall not exceed, without consent of the non-
defaulting JVS Participant, an accumulated maximum kilowatts equal to 25% of such non-
defaulting JVS Participant's ownership share of the project prior to any such increases.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
B. Ohio Municipal Electric Generation Agencv Joint Venture 5 (Omega JV-5) (Continued)
OMEGA JVS is managed by AMP,which acts as the joint venture's agent. During 1993 and 2001
AMP issued $153,415,000 and $13,899,981 respectively of 30 year fixed rate Beneficial Interest
Certificates (Certificates) on behalf of the Financing Participants of OMEGA JVS. The 2001
Certificates accrete to a value of$56,125,000 on February 15, 2030. The net proceeds of the bond
issues were used to construct the OMEGA JVS Project. On February 17, 2004 the 1993
Certificates were refunded by issuing 2004 Beneficial Interest Refunding Certificates in the
amount of$116,910,000, which resulted in a savings to the membership of$34,951,833 from the
periods 2005 through 2024. On February 15, 2014, all of the 2004 BIRCs were redeemed from
funds held under the trust agreement securing the 2004 BIRCs and the proceeds of a promissory
note issued to AMP by OMEGA JVS. This was accomplished with a draw on AMP's revolving
credit facility. The resulting balance was $65,891,509 at February 28, 2014. On January 29, 2016,
OMEGA JVS issued the 2016 Beneficial Interest Certificates ("2016 Certificates") in the amount
of$49,745,000 for the purpose of refunding the promissory note to AMP in fu1L The outstanding
amount on the promissory note had been reduced to $49,243,377 at the time of refunding as
compared to its value at December 31, 2015 of$49,803,187. The promissory note represented the
February 2014 redemption of the 2004 Certificates from funds held under the trust agreement
securing the 2004 BIRCs.
The City's net investment and its share of operating results of OMEGA JVS are reported in the
City's electric fund(an enterprise fund). The City's net investment to date in OMEGA JVS was
$219,610 at December 31, 2022. Complete financial statements for OMEGA JVS may be
obtained from AMP ar from the State Auditor's website at www.auditor.state.oh.us.
C. Ohio Municipal Electric Generation A�encv Joint Venture 6 (Ome�a JV-6)
The City of Napoleon is a Financing Participant with an ownership percentage of 4.17%, and
shares participation with nine other subdivisions within the State of Ohio in the Ohio Municipal
Electric Generation Agency Joint Venture 6 (OMEGA JV6). Financing Participants, after
consideration of the potential risks and benefits can choose to be Owner Participants or Purchaser
Participants. Owner Participants own undivided interests, as tenants in common in the Project in
the amount of its Project Share. Purchaser Participants purchase the Project Power associated
with its Project Share.
Pursuant to the OMEGA Joint Venture JV6 Agreement (Agreement), the participants agree
jointly to plan, acquire, construct, operate and maintain the Project, and hereby agree, to pay
jointly for the electric power, energy and other services associated with the Project.
OMEGA JV6 was created to construct four (4) wind turbines near Bowling Green Ohio. Each
turbine has a nominal capacity of 1.8 MW and sells electricity from its operations to OMEGA
JV6 Participants.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
C. Ohio Municipal Electric Generation A�encv Joint Venture 6 (Ome�a JV-6) (Continued)
Pursuant to the Agreement each participant has an obligation to pay its share of debt service on
the Adjustable Rate Revenue Bonds (Bonds)from the revenues of its electric system, subject only
to the prior payment of Operating & Maintenance Expenses (O&M) of each participant's System,
and shall be on a parity with any outstanding and future seniar electric system revenue bonds,
notes or other indebtedness payable from any revenues of the System. On dissolution of
OMEGA JV6, any excess funds shall be refunded to the Non-Financing Participants in proportion
to each Participant's Project Share and to Financing Participant's respective obligations first by
credit against the Financing Participant's respective obligations. Any other excess funds shall be
paid to the Participants in proportion to their respective Project Shares. Under the terms of the
Agreement each financing participant is to fiX, charge and collect rates, fees, charges, including
other available funds, at least sufficient in order to maintain a debt coverage ratio equal to 110%
of the sum of OMEGA JV6 debt service and any other outstanding senior lien electric system
revenue obligations. As of August 15, 2015, OMEGA JV-6 no longer has any outstanding debt
obligations.
The Agreement provides that the failure of any JV6 participant to make any payment due by the
due date constitutes a default. In the event of a default and one in which the defaulting
Participant failed to cure its default as provided far in the Agreement, the remaining participants
would acquire the defaulting Participant's interest in the project and assume responsibility for the
associated payments on a pro rata basis up to a maximum amount equal to 25% of such non-
defaulting Participant's Project share ("Step Up Power").
The City's net investment and its share of operating results of OMEGA JV6 are reported in the
City's electric fund (an enterprise fund). The City's net investment to date in OMEGA JV6 was
$114,076 at December 31, 2022. Complete financial statements for OMEGA JV6 may be
obtained from AMP or from the State Auditor's website at www.auditor.state.oh.us.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
C. Ohio Municipal Electric Generation A�encv Joint Venture 6 (Ome�a JV-6) (Continued)
The ten participating subdivisions and their respective ownership shares at December 31, 2022
are:
KW %of
Participant Amount Financing
Bowling Green 4,100 56.94%
Cuyahoga Falls 1,800 25.00%
Napoleon 300 4.17%
Oberlin 250 3.47%
Wadsworth 250 3.47%
Edgeton 100 1.39%
Elmore 100 1.39%
Montpelier 100 1.39%
Pioneer 100 1.39%
Monroeville 100 1.39%
Total 7,200 100.00%
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
D. Prairie State Energv Campus (68 Members)
On December 20, 2007, AMP acquired a 23.26% undivided ownership interest (the "PSEC
Ownership InteresP') in the Prairie State Energy Campus ("PSEC"), a two-unit, supercritical coal-
fired power plant designed to have a net rated capacity of approximately 1,582 MW and
associated facilities in southwest Illinois. The PSEC Ownership Interest is held by AMP 368
LLC, a single-member Delaware limited liability company("AMP 368 LLC"). AMP is the owner
of the sole membership interest in AMP 368 LLC. Construction of the PSEC commenced in
October 2007. Unit 1 of the PSEC commenced operations in the second quarter of 2012 and Unit
2 of the PSEC commenced operations in the fourth quarter of 2012.
From July 2008 through September 2010, AMP issued five series of Prairie State Energy Campus
Revenue Bonds (collectively,the "Initial Prairie State Bonds")to finance PSEC project costs and
PSEC related expenses. The Initial Prairie State Bonds consist of tax-exempt, taxable and tax
advantaged Build America Bonds issued in the original aggregate principal amount of
$1,696,800,000. On January 14, 2015 and November 30, 2017, AMP issued bonds to refund all
of the callable tax-exempt Initial Prairie State Bonds issued in 2008 and 2009. As of December
31, 2022, AMP had $1,413,165,000 aggregate principal amount of Prairie State Bonds
outstanding.
AMP sells the power and energy from the PSEC Ownership Interest pursuant to a take-or-pay
power sales contract with 68 Members (the "Prairie State Participants"). The Prairie State
Bonds are net revenue obligations of AMP, secured by a master trust indenture,payable primarily
from the payments to be made by the Prairie State Participants under the terms of the Prairie State
Power Sales Contract. The capacity factor for the Prairie State Energy Campus for the fiscal year
ending December 31, 2021 was 81.4°/o.
The City of Napoleon has executed a take-or-pay power sales contract with AMP as a participant
of the PSEC of 4,976 kW or 1.35% of capacity and associated energy from the PSEC.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
E.AMP Fremont Energv Center(AFEC)
On July 28, 2011, AMP acquired from FirstEnergy Generation Corporation ("FirstEnergy") the
Fremont Energy Center ("AFEC"), then nearing completion of construction and located in
Fremont, Sandusky County, Ohia Following completion of the commissioning and testing,
AMP declared AFEC to be in commercial operation as of January 20, 2012. The AMP Fremont
Energy Center is a natural gas fired, combined cycle, electric power generation plant with a
capacity of 512 MW (unfired)/675 MW (fired), consisting of two combustion turbines, two heat
recovery steam generators and one steam turbine and condenser.
AMP subsequently sold a 5.16% undivided ownership interest in AFEC to Michigan Public
Power Agency and entered into a power sales contract with the Central Virginia Electric
Cooperative for the output associated with a 4.15% undivided ownership interest in AFEC. The
output of AFEC associated with the remaining 90.69% undivided ownership interest (the
"90.69% Interest") is sold to AMP Members pursuant to a take-or-pay power sales contract with
87 of its members (the "AFEC Power Sales Contract").
To provide permanent financing for the 90.69% Interest, in 2012, AMP issued, in two series
$546,085,000 of its AMP Fremont Energy Center Project Revenue Bonds (the "AFEC Bonds"),
consisting of taxable and tax-exempt obligations. The AFEC Bonds are net revenue obligations
of AMP, secured by a master trust indenture and payable from amounts received by AMP under
the AFEC Power Sales Contract. On December 20, 2017, AMP issued bonds to refund all of the
callable tax-exempt AFEC Bonds issued in 2012. As of December 31, 2022, $405,280,000
aggregate principal amount of AFEC Bonds was outstanding.
In April 2021, AMP executed a Gas Supply Contract (the "Gas Supply Contract") with Tennergy
Corporation ("Tennergy") under the terms of which Tennergy will provide a portion of the
natural gas made available to Tennergy under the terms of a Prepaid Natural Gas Sales
Agreement ("Prepaid Natural Gas Sales Agreement") between Tennergy and a subsidiary of
Morgan Stanley. Under the Gas Supply Contract, AMP receives the benefit of a discount from
market index gas priced.
The City of Napoleon has executed a take-or-pay power sales contract with AMP as a participant
of the AFEC of 6,650 kW or 1.43%of capacity and associated energy from the AFEC.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
F. Combined Hvdroelectric Proiects (79 Members)
AMP owns and operates three hydroelectric projects, the Cannelton, the Smithland and the
Willow Island hydroelectric generating facilities (the "Combined Hydroelectric Projects"), all on
the Ohio River, with an aggregate generating capacity of approximately 208 MW. Each of the
Combined Hydroelectric Projects is in commercial operation and consists of run-of-the-river
hydroelectric generating facilities on existing Army Corps dams and includes associated
transmission facilities. AMP holds the licenses from FERC for the Combined Hydroelectric
Projects.
To provide financing for, ar refinance certain obligations incurred in respect of, the Combined
Hydroelectric Projects, AMP has issued eight series of its Combined Hydroelectric Projects
Revenue Bonds (the"Combined Hydroelectric Bonds"),in an original aggregate principal amount
of $2,354,485,000 and consisting of taxable, tax-exempt and tax advantaged obligations (Build
America Bonds, Clean Renewable Energy Bonds and New Clean Renewable Energy Bonds).
The Combined Hydroelectric Bonds are secured by a master trust indenture and payable from
amounts received by AMP under a take-or-pay power sales contract with 79 of its Members. As
of December 31, 2022, $2,119,182,647 aggregate principal amount of the Combined
Hydroelectric Bonds and approximately $23.1 million aggregate principal amount of subordinate
obligations, consisting of notes evidencing draws on the Line of Credit, were outstanding under
the indenture securing the Combined Hydroelectric Bonds.
In August 2017, AMP filed a lawsuit against Voith Hydro, Inc. ("Voith"), the supplier of major
powerhouse equipment, including the turbines and generators for the Combined Hydroelectric
Projects and the Meldahl Project (as hereinafter defined). See "LITIGATION—RELATING TO THE
COMBINED HYDROELECTRIC PROJECTS AND MELDAHL PROJECT"herein.
As part of the initial disclosures, AMP listed 70 potential witnesses and $90 million in gross
damages, while Voith listed over 100 potential witnesses and $65 million in gross damages. A
scheduling order has been established which provides for an October 31, 2022 trial date.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
G.Meldahl Hvdroelectric Proiect(48 Members) and Greenup (47 Members)
AMP owns and, together with the City of Hamilton, Ohio, an AMP Member, developed and
constructed a 108.8 MW, three-unit hydroelectric generation facility on the Captain Anthony
Meldahl Locks and Dam, an existing Army Corps dam on the Ohio River, and related equipment
and associated transmission facilities (the "Meldahl Project"). The Meldahl Project is operated
by the City of Hamilton.
In order to finance the construction of the Meldahl Project and related costs, AMP issued seven
series of its Meldahl Hydroelectric Project Revenue Bonds ("Meldahl Bonds") in an original
aggregate principal amount of$820,185,000 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. As
of December 31, 2022, $655,050,000 aggregate principal amount of the Meldahl Bonds and
approximately $2.3 million aggregate principal amount of subordinate obligations, consisting of
notes evidencing draws on the Line of Credit, were outstanding under the indenture securing the
Meldahl Bonds.
The City of Napoleon has executed a take-or-pay power sales contract with AMP as a participant
of the Meldahl Project of 504 kW or .48% of capacity and associated energy from the Meldahl
Proj ect.
H.Napoleon Solar(3 Members)
AMP owns the Napoleon Solar Project, a 3.54 MW solar installation, located in Napoleon, Ohio.
The Napoleon Solar Project entered commercial operation in August 2012. The output of the
Napoleon Solar Project is sold pursuant to the terms of a take-or-pay power sales contract with
three of AMP's Members. The cost of the Napoleon Solar Project was financed with the
proceeds of a draw on the Line of Credit. As of December 31, 2022, $3,642,991 on AMP's Line
of Credit was allocable to the financing or refinancing of costs related to the Napoleon Solar
Proj ect.
The City of Napoleon has executed a take-or-pay power sales contract with AMP as a participant
of the Napoleon Solar Project of 104 kW or 29.38% of capacity and associated energy from the
Napoleon Solar Project.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 16-JOINT VENTURES (Continued)
I. Greenup Hvdroelectric Proiect(47 Members)
In connection with the development of the Meldahl Project, Hamilton agreed to sell and AMP
agreed to purchase a 48.6% undivided ownership interest (the "AMP Interest") in the Greenup
Hydroelectric Facility. On May 11, 2016, AMP issued $125,630,000 aggregate principal amount
of its Greenup Hydroelectric Project Revenue Bonds, Series 2016A (the "Greenup Bonds") and,
with a portion of the proceeds thereof, acquired the AMP Interest. The Greenup Bonds are
secured by a separate power sales contract that has been executed by the same Members (with the
exception of Hamilton, which retained title to a 51.4% ownership interest in the Greenup
Hydroelectric Facility) that executed the Meldahl Power Sales Contract. As of December 31,
2022, $120,600,000 aggregate principal amount of the Greenup Bonds was outstanding and
approximately $0.55 million aggregate principal amount of subordinate obligations, consisting of
notes evidencing draws on the Line of Credit were outstanding under the indenture securing the
Greenup Bonds.
The City of Napoleon has executed a take-or-pay power sales contract with AMP as a participant
of the Greenup Hydroelectric Facility of 330 kW or .97% of capacity and associated energy from
the Greenup Hydroelectric Facility.
J. Community Improvement Corporation (CIC)
The City, along with Henry County is a participant in the joint venture to operate the Community
Improvement Corporation (CIC). The corporation's duties are to advance, encourage and
promote the industrial, economic, commercial and civic development of the City of Napoleon and
Henry County. The CIC is governed by a Board of 10 Trustees. Five of these trustees are
residents of the City of Napoleon and the remaining five are residents of Henry County. The
City's degree of control over the Board is limited to its representation on the Board. The City has
no equity interest in the CIC. The City paid $39,000 to the CIC during 2022. Financial
information can be obtained from the CIC, 104 East Washington Street,Napoleon, Ohio 43545.
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CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 17-CONTINGENCIES
A.American Municipal Power Generating Station Project(AMPGS)
The City is a member of American Municipal Power (AMP) and has participated in the AMP
Generating Station (AMPGS) Project. This project intended to develop a pulverized coal power
plant in Meigs County, Ohia The City's share was 12,000 kilowatts of a total 771,281 kilowatts,
giving the City a 1.56 percent share. The AMPGS Project required participants to sign "take or
pay" contracts with AMP. As such, the participants are obligated to pay any costs incurred for
the project. In November 2009, the participants voted to terminate the AMPGS Project due to
projected escalating costs. These costs were therefore deemed impaired and participants were
obligated to pay costs already incurred. In prior years, the payment of these costs was not
considered probable due to AMP's pursuit of legal action to void them. As a result of a March
31, 20141ega1 ruling, the AMP Board of Trustees on April 15, 2014 and the AMPGS participants
on April 16, 2014 approved the collection of the impaired costs and provided the participants with
an estimate of their liability. The City's estimated share at March 31, 2014 of the impaired costs
is $2,078,311. The City received a credit of$714,622 related to their participation in the AMP
Fremont Energy Center (AFEC) Project, and another credit of$542,698 related to the AMPGS
costs deemed to have future benefit for the project participants, leaving a net impaired cost
estimate of$820,991. Because payment is now probable and reasonably estimable, the City is
reporting a payable to AMP in its business-type activities and in its electric enterprise fund for
these impaired costs. AMP financed these costs on its revolving line of credit. Any additional
costs (including line-of-credit interest and legal fees) or amounts received related to the project
will impact the City's liability. These amounts will be recorded as they become estimable.
In late 2016, AMP reached a Settlement in the Bechtel Corporation litigation. On December 8,
2016, at the AMPGS Participants meeting, options for the allocation of the Settlement funds were
approved. The AMPGS Participants and the AMP Board of Trustees voted to allocate the
Settlement among the participants and the AMP General Fund based on each participant's
original project share in kW including the AMP General Fund's project share.
The City does have a potential PHFU Liability of $610,940 resulting in a net total potential
liability of$614,681, assuming the assets making up the PHFU (principally the land comprising
the Meigs County site)have no value and also assuming the City's credit balance would earn zero
interest. Stranded costs as well as PHFU costs are subject to change, including future borrowing
costs on the AMP line of credit. Activities include items such negative items as property taxes as
well as positive items revenue from leases or sale of all or a portion of the Meigs County site
property.
B.Litigation
The City is a party to various legal proceedings which seek damages or injunctive relief generally
incidental to its operations and pending projects. The City's management is of the opinion that
the ultimate disposition of various claims and legal proceedings will not have a material effect, if
any, on the financial condition of the City.
- 118 -
CITY OF NAPOLEON, OHIO
Notes to the Basic Financial Statements
For the Year Ended December 31, 2022
NOTE 17-CONTINGENCIES (Continued)
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 6111.44 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.
NOTE 18—SIGNIFICANT COMMITMENTS
There were significant encumbrances outstanding at year-end in the Capital Improvement Fund (capital
projects fund)in the amount of$378,638. This amount is reported as part of the committed fund balance.
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CITY OF NAPOLEON, OHIO
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CITY OF NAPOLEON, OHIO
REQUIRED �.7 UPPLEMENTARY INFORMATION
- 121 -
CITY OF NAPOLEON, OHIO
Schedule of City's Proportionate Share of the Net Pension Liability
Last Nine Years
Ohio Public Employees Retirement System
Year 2014 2015 2016 2017
City's proportion of the net pension
liability 0.036165% 0.036165% 0.035699% 0.034863%
City's proportionate share of the net
pension liability $4,263,382 $4,361,903 $6,183,555 $7,916,741
City's covered payroll $3,460,008 $4,450,275 $4,795,008 $4,506,742
City's proportionate share of the net
pension liability as a percentage
of its covered payroll 123.22°/o 98.01% 128.96% 175.66%
Plan fiduciary net posirion as a
percentage of the total pension
liability 86.36% 86.45% 81.08% 7725%
Source: Finance Directar's Office and the Ohio Public Employees Retirement System
Ohio Police and Fire Pension Fund
Year 2014 2015 2016 2017
City's proportion of the net pension
liability 0.0728821% 0.0728821% 0.070684% 0.064993%
City's proportionate share of the net
pension liability $3,549,587 $3,775,597 $4,547,148 $4,116,571
City's coveredpayroll $1,190,129 $1,497,328 $1,509,393 $1,468,432
City's proportionate share of the net
pension liability as a percentage
of its covered payroll 298.25% 252.16% 301.26% 280.34%
Plan fiduciary net position as a
percentage of the total pension
liability 73.00% 72.20% 66.77% 68.36%
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 displaycd 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,
wl�ich is the prior year end.
See accompanying notes to required supplementary information
- 122 -
CITY OF NAPOLEON, OHIO
2ois 2oi9 2020 2021 2022
0.036763% 0.034758% 0.033839% 0.033820% 0.033075%
$5,767,324 $9,519,511 $6,688,505 $5,008,003 $2,877,659
$4,748,600 $4,694,650 $4,761,086 $4,769,814 $4,805,586
121.45% 202.77% 140.48% 104.99% 59.88%
84.66% 74.70% 82.17% 86.88% 92.62%
2018 2019 2020 2021 2022
0.066267% 0.064170% 0.063651% 0.065738% 0.066760%
$4,067,121 $5,237,967 $4,287,876 $4,481,424 $4,170,785
$1,524,027 $1,527,850 $1,629,373 $1,379,061 $1,690,300
266.87% 342.83% 263.16% 324.96% 246.75%
70.91% 63.07% 69.89% 70.65% 75.03%
- 123 -
CITY OF NAPOLEON, OHIO
Schedule of City Pension Contributions
Last Ten Years
Ohio Public Employees Retirement System
Fiscal Year 2013 2014 2015 2016
Contractually required contribution $449,801 $534,033 $575,401 $540,809
Contrbutions in relation to the
contractually required contnbution 449,801 534,033 575,401 540,809
Contribution deficiency(excess) $0 $0 $0 $0
City's covered payroll $3,460,008 $4,450,275 $4,795,008 $4,506,742
Contributions as a percentage of 13.00% 12.00% 12.00% 12.00%
covered payroll
Source:Finance Directar's Office and the Ohio Public Employees Retirement System
Ohio Police and Fire Pension Fund
Year 2013 2014 2015 2016
Contractually required contribution $203,274 $304,856 $303,237 $295,008
Contrbutions in relation to the
contractually required contnbution 203,274 304,856 303,237 295,008
Contrbution de�ciency(excess) $0 $0 $0 $0
City's coveredpayroll $1,190,129 $1,497,328 $1,509,393 $1,468,432
Contnbutions as a percentage of 17.08% 20.36°/o 20.09% 20.09%
covered payroll
Source:Finance Director's Office and the Ohio Police and Fire Pension Fund
Notes:The City implemented GASB Statement 68 in 2015.
See accompanying notes to required supplementary information
- 124 -
CITY OF NAPOLEON, OHIO
2017 2018 2019 2020 2021 2022
$631,563 $657,251 $666,552 $667,774 $672,782 $698,468
631,563 657,251 666,552 667,774 672,782 698,468
$0 $0 $0 $0 $0 $0
$4,748,600 $4,694,650 $4,761,086 $4,769,814 $4,805,586 $4,989,057
13.00% 14.00% 14.00% 14.00% 14.00% 14.00%
2017 2018 2019 2020 2021 2022
$306,177 $306,945 $327,341 $293,740 $360,034 $375,309
306,177 306,945 327,341 293,740 360,034 375,309
$0 $0 $0 $0 $0 $0
$1,524,027 $1,527,850 $1,629,373 $1,379,061 $1,690,300 $1,762,014
20.09% 20.09°/a 20.09% 21.30% 21.30% 21.30%
- 125 -
CITY OF NAPOLEON, OHIO
Schedule of City's Proportionate Share of the Net Other Postemployment Benefits (OPEB)
Liability
Last Six Years
Ohio Public Employees Retirement System
Year 2017 2018 2019
City's proportion of the net OPEB
liability(asset) 0.033745% 0.035762% 0.033927%
City's proportionate share of the net
OPEB liability(asset) $3,408,342 $3,883,467 $4,423,283
City's covered payroll $4,506,742 $4,748,600 $4,694,650
City's proportionate share of the net
OPEB liability(asset) as a percentage
of its covered payroll 75.63% 81.78% 94.22%
Plan fiduciary net position as a
percentage of the total OPEB
liability(asset) 54.50% 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
City's proportion of the net OPEB
liability 0.064993% 0.066267% 0.064170%
City's proportionate share of the net
OPEB liabiliry $3,085,056 $3,754,610 $584,364
City's covered payroll $1,468,432 $1,524,027 $1,527,850
City's proportionate share of the net
OPEB liability as a percentage
of its covered payroll 210.09% 246.36% 38.25%
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 City implemented GASB Statement 75 in 2018.
Information prior to 2016 is not available.
The schedule is reported as of the measurement date of the Net OPEB Liability.
See accompanying notes to required supplementary information
- 126 -
CITY OF NAPOLEON, OHIO
2020 2021 2022
0.033834% 0.033873% 0.033099%
$4,673,357 ($603,472) ($1,036,709)
$4,761,086 $4,769,814 $4,805,586
9s.16°io �12.6s°io� �zl.s�°io)
47.80% 115.57% 128.23%
2020 2021 2022
0.063651% 0.065738% 0.066760%
$628,727 $696,504 $731,747
$1,629,373 $1,379,061 $1,690,300
38.59% 50.51% 43.29%
47.08% 45.42% 46.86%
- 127 -
CITY OF NAPOLEON, OHIO
Schedule of City's Other Postemployment Benefit(OPEB) Contributions
Last Ten Years
Ohio Public Employees Retirement System
Year 2013 2014 2015 2016
Contractually required contribution $34,600 $89,006 $95,900 $90,135
Contriburions in relation to the
contractually required contribution 34,600 89,006 95,900 90,135
Contribution deficiency(excess) $0 $0 $0 $0
City's covered payroll $3,460,008 $4,450,275 $4,795,008 $4,506,742
Contributions as a percentage of 1.00% 2.00% 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 2016
Contractually required contriburion $5,951 $7,487 $7,547 $7,342
Contributions in relation to the
contractually required contribution 5,951 7,487 7,547 7,342
Contribution deficiency(excess) $0 $0 $0 $0
City's coveredpayroll $1,190,129 $1,497,328 $1,509,393 $1,468,432
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.
See accompanying notes to required supplementary information
- 128 -
CITY OF NAPOLEON, OHIO
2oi� 2ois 2oi9 2020 2o2i 2022
$47,486 $0 $0 $0 $0 $0
47,486 0 0 0 0 0
$0 $0 $0 $0 $0 $0
$4,748,600 $4,694,650 $4,761,086 $4,769,814 $4,805,586 $4,890,871
1.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2017 2018 2019 2020 2021 2022
$7,441 $7,448 $7,746 $7,237 $8,755 $9,110
7,441 7,448 7,746 7,237 8,755 9,110
$0 $0 $0 $0 $0 $0
$1,524,027 $1,527,850 $1,629,373 $1,379,061 $1,690,300 $1,762,014
0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
- 129 -
CITY OF NAPOLEON, OHIO
Notes to the Supplementary Required Information
For the Year Ended December 31, 2022
NET PENSION LIABILITY
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%-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%to 1.4°/o for post 1/7/13 retirees.
2021: 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.
- 130 -
CITY OF NAPOLEON, OHIO
Notes to the Supplementary Required Information
For the Year Ended December 31, 2022
NET PENSION LIABILITY(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%to 8.00%
-Decrease salary increases from 3.75%to 325%
- Change in payroll growth from 3.75%to 3.25%
-Reduce DROP interest rate from 4.5%to 4.0°/o
-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 1, 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%to 7.50%
This Space Intentionally Left Blank
- 131 -
CITY OF NAPOLEON, OHIO
Notes to the Supplementary Required Information
For the Year Ended December 31, 2022
NET OPEB LIABILITY(ASSET)
OHIO 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%
- The Municipal Bond Rate changed from 3.71%to 2.75%
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 3.16%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%to 2.00%
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%to 1.84%
- 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.
- 132 -
CITY OF NAPOLEON, OHIO
Notes to the Supplementary Required Information
For the Year Ended December 31, 2022
NET OPEB LIABILITY (ASSET) (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%.
- 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%.
- 133 -
CITY OF NAPOLEON, OHIO
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- 134 -
CITY OF NAPOLEON, OHIO
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
THE FOLLOWING COMBINING STATEMENTSAND SCHEDZILESINCLUDE
THE MAJOR AND NONMAJOR GOVERNMENTAL FUNDS, AND
FIDZICIARY FUNDS.
- 135 -
CITY OF NAPOLEON, OHIO
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue funds are used to account for the proceeds of specific revenue sources (other
than amounts relating to major capital projects) that are legally restricted to expenditures for
specified purposes.
Street Construction, Maintenance and Repair Fund
To account for state-levied and controlled gasoline tax and motor vehicle registration fees
designated for street maintenance and repair.
State Highway Improvement Fund
To account for the portion of the state gasoline tax and motor vehicle registration fees
designated for street maintenance and repair of state highways within the City.
Motor Vehicle License Tax Fund
To account for county-levied motor vehicle registration fees designated for street
construction, maintenance and repair.
EMS Transport Service Fund
To account for service charges to clients for emergency medical services.
Recreation Fund
To account for the operation and maintenance of public recreational facilities.
American Rescue Plan Fund
This fund is used to account for Coronavirus State and Local Fiscal Recovery funds
received as part of the American Rescue Plan Act.
Shelter House Facility Repair Fund
To account for the maintenance and repair of public shelter house facilities.
HoteVMotel Tax Fund
To account for the collection of HoteUMotel EXcise Tax, otherwise known as Lodge Tax.
Fire Loss Claims Fund
To account for insurance proceeds held as security against the cost to provide for
removing,repairing and securing losses caused by fire.
Community Development Block Grant(CDBG) Income Fund
To account for Community Development Block Grant monies to be used for home
improvements.
Indigent Drivers Alcohol Treatment Fund
To account for the revenues from fines as established by the state to pay for alcohol
related training programs for indigent persons.
(Continued)
- 136 -
CITY OF NAPOLEON, OHIO
Nonmajor Governmental Funds
Special Revenue Funds (Continued)
Law Enforcement and Education Fund
To account for the financial resources used to educate and treat persons with alcohol
related problems and to enhance law enforcement activities as a deterrent to the operation
of motor vehicles while under the influence of alcohol.
Court Computerization Fund
To account for the acquisition, improvement, replacement and repair of capital assets of
the Napoleon Municipal Court.
Law Enforcement Trust Fund
To account for funds received by the police department for contraband,per state statute.
Mandatory Drug Fine Fund
To account for mandatory fines collected for drug related offenses.
Fire Equipment Fund
To account for monies received from fire contracts to be used for the purchase of fire
fighting apparatus.
Municipal Probation Service Fund
To account for monies received from fines levied and expenditures by Probation Officer.
Probation Officer Grant Fund
To account for monies received from State Grant for Municipal Probation Officer.
Court Improvement Fund
To account for monies received from fines levied and expenditures for Court
Improvements.
Handicap Parking Fines Fund
To account for monies received from Municipal Court for handicap parking violations.
Police Pension Fund
To account for taxes levied toward partial payment of the current and accrued liability for
police disability and pension.
Fire Pension Fund
To account for taxes levied toward partial payment of the current and accrued liability for
fire disability and pension.
(Continued)
- 137 -
CITY OF NAPOLEON, OHIO
Nonmajor GoveVnmental Funds
Special Revenue Funds (Continued)
Cemetery Fund
To account for monies received by specific agreement, gifts, bequests or otherwise to
provide for perpetual care of individual plots within the City cemetery.
Justice Reinvestment Incentive Grant Fund
To account for financial resources used for municipal court/probation department.
Certified Police Training Fund
To account for financial resources used for police continuing professional training.
Indigent Drivers Interlock/Alcohol Fund
To account for revenues from fines as established by the State to pay for alcohol
monitoring programs for indigent people.
One Ohio Fund
To account for revenues distributed by the State for opioid settlements from drug
manufacturers and distributors. It is designated for resources to assist with community
drug recovery,prevention and treatment.
Debt Service Fund
Debt Service Funds are used to account for retirement of the City's general obligation and
special assessment bonds.
General Bond Retirement 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.
Oakwood/American TIF Fund
To account for the tax increment financing of activity related to the improvements and
future development at Oakwood Avenue and American Road.
(Continued)
- 138 -
CITY OF NAPOLEON, OHIO
Nonmajor Governmental Funds
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.
Fire Facility Training Grant Fund
To account far financial resources used for the Fire Training Facility construction. (This
fund only exists on a GAAP basis and is not part of the City's appropriated budget;
therefore no budgetary schedule is presented.)
Capital Improvement Project (CIP) Funding Reserve Fund
To account for the capital improvement reserve established by City Council to pre-fund
large purchases.
- 139 -
CITY OF NAPOLEON, OHIO
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2022
Nonmajor Nonmajor Total Nonmajor
Special Nonmajor Debt Capital Project Governmental
Revenue Funds Service Fund Fund Funds
Assets:
Cash and Cash Equivalents $ 4,734,828 $ 39,400 $ 72,437 $ 4,846,665
Receivables:
Taxes 162,475 0 0 162,475
Accounts 388,407 0 0 388,407
Intergovernmental 353,384 0 0 353,384
Interest 2,373 0 0 2,373
Loans 128,316 0 0 128,316
Inventory of Supplies,at Cost 363,142 0 0 363,142
Total Assets $ 6,132,925 $ 39,400 $ 72,437 $ 6,244,762
Liabilities:
Accounts Payable $ 97,685 $ 0 $ 0 $ 97,685
Accrued Wages and Benefits Payable 52,361 0 0 52,361
Interfund I,oans Payable 0 0 2,800 2,800
Unearned Revenue 462,106 0 0 462,106
Total Liabilities 612,152 0 2,800 614,952
Deferred Inflows of Resources:
Unavailable Amounts 644,070 0 0 644,070
Property Tax for Ne�t Fiscal Year 155,344 0 0 155,344
Total Deferred Inflows of Resources 799,414 0 0 799,414
Fund Balances:
Nonspendable 363,142 0 0 363,142
Restricted 3,190,511 27,756 0 3,218,267
Committed 1,167,706 0 72,437 1,240,143
Assigned 0 11,644 0 11,644
Unassigned 0 0 (2,800) (2,800)
Total Fund Balances 4,721,359 39,400 69,637 4,830,396
Total Liabilities,Deferred Inflows of Resources
and Fund Balances $ 6,132,925 $ 39,400 $ 72,437 $ 6,244,762
- 140 -
CITY OF NAPOLEON, OHIO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Governmental Funds
For�the Year Ended December 31, 2022
Nonmajor Nonmajor Total Nonmajor
Special Nonmajor Debt Capital Project Governmental
Revenue Funds Service Fund Fund Funds
Revenues:
Property Taxes $ 138,733 $ 0 $ 0 $ 138,733
Payments in Lieu of Taxes 0 33,301 0 33,301
Intergovernmental Revenues 1,019,257 0 0 1,019,257
Charges for Services 834,875 0 0 834,875
Investment Earnings 38,143 164 0 38,307
Fines and Forfeitures 129,449 0 0 129,449
All Other Revenue 90,169 0 0 90,169
Total Revenue 2,250,626 33,465 0 2,284,091
Espenditures:
Current:
Security of Persons and Property 585,303 0 0 585,303
Leisure Time Activities 1,065,938 0 0 1,065,938
Community Environment 13,002 0 0 13,002
Transportation 557,918 0 0 557,918
General Government 332,793 5,709 0 338,502
Debt Service:
Principal Retirement 55,000 45,000 0 100,000
Interest and Fiscal Charges 9,600 9,250 0 18,850
Total Faipenditures 2,619,554 59,959 0 2,679,513
Excess(Deficiency)of Revenues
Over E�enditures (368,928) (26,494) 0 (395,422)
Other Financing Sources(Uses):
Sale of Capital Assets 9,568 0 0 9,568
Transfers In 815,504 56,500 0 872,004
Transfers Out (96,760) 0 0 (96,760)
Total Other Financing Sources(Uses) 728,312 56,500 0 784,812
Net Change In Fund Balance 359,384 30,006 0 389,390
Fund Balances at Beginning of Year 4,322,042 9,394 69,637 4,401,073
Increase in Inventory Reserve 39,933 0 0 39,933
Fund Balances End of Year $ 4,721,359 $ 39,400 $ 69,637 $ 4,830,396
- 141 -
CITY OF NAPOLEON, OHIO
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2022
Street
Construction,
Maintenance StateHighway MotorVehicle EMSTransport
and Repair Improvement License Tax Service
Assets:
Cash and Cash Equivalents $ 912,092 $ 79,546 $ 464,882 $ 400,857
Receivables:
Taxes 0 0 0 0
Accounts 3,692 0 0 357,367
Intergovernmental 256,047 20,763 32,313 0
Interest 598 52 305 0
Loans 0 0 0 0
Inventory of Supplies,at Cost 353,776 0 0 0
Total Assets $ 1,526,205 $ 100,361 $ 497,500 $ 758,224
Liabilities:
Accounts Payable $ 45,212 $ 0 $ 0 $ 1,431
Accrued Wages and Benefits Payable 10,593 0 0 0
Unearned Revenue 0 0 0 0
Total Liabilitics 55,805 0 0 1,431
Deferred Inflows of Resources:
Unavailable Amounts 171,296 13,894 21,847 273,833
Property Tax for Next Fiscal Year 0 0 0 0
Total Deferred Inflows of Resources 171,296 13,894 21,847 273,833
Fund Balances:
Nonspendable 353,776 0 0 0
Restricted 945,328 86,467 475,653 0
Committed 0 0 0 482,960
Total FundBalances 1,299,104 86,467 475,653 482,960
Total Liabilities,Deferred Inflows of Resources
and Fund Balances $ 1,526,205 $ 100,361 $ 497,500 $ 758,224
- 142 -
CITY OF NAPOLEON, OHIO
American Shelter House HoteUMotel Fire Loss
Recreation Rescue Plan Facility Repair Tax Claims CDBG Income
$ 723,351 $ 462,106 $ 6,231 $ 8,573 $ 94,772 $ 47,995
0 0 0 0 0 0
8 0 0 27,340 0 0
0 0 0 0 0 0
475 303 4 0 0 0
0 0 0 0 0 128,316
9,366 0 0 0 0 0
$ 733,200 $ 462,409 $ 6,235 $ 35,913 $ 94,772 $ 176,311
$ 31,752 $ 0 $ 0 $ 8,573 $ 0 $ 0
13,092 0 0 0 0 0
0 462,106 0 0 0 0
44,844 462,106 0 8,573 0 0
475 303 4 0 0 128,316
0 0 0 0 0 0
475 303 4 0 0 128,316
9,366 0 0 0 0 0
0 0 0 27,340 94,772 47,995
678,515 0 6,231 0 0 0
687,881 0 6,231 27,340 94,772 47,995
$ 733,200 $ 462,409 $ 6,235 $ 35,913 $ 94,772 $ 176,311
(Continued)
- 143 -
CITY OF NAPOLEON, OHIO
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2022
Indigent Law Law
Drivers Alcohol Enforcement Court Enforcement
Treatment and Education Computerization Trust
Assets:
Cash and Cash Equivalents $ 66,089 $ 1,831 $ 200,789 $ 1,189
Receivables:
T axes 0 0 0 0
Accounts 0 0 0 0
Intergovernmental 0 0 0 0
Interest 43 1 130 0
Loans 0 0 0 0
Inventory of Supplies,at Cost 0 0 0 0
Total Assets $ 66,132 $ 1,832 $ 200,919 $ 1,189
Liabilities:
Accounts Payable $ 0 $ 0 $ 692 $ 0
Accrued Wages and Benefits Payable 0 0 0 0
Unearned Revenue 0 0 0 0
Total Liabilities 0 0 692 0
Deferred Inflows of Resources:
Unavailable Amounts 43 1 130 0
Property Tax for Ne�Fiscal Year 0 0 0 0
Total Deferred Inflows of Resources 43 1 130 0
Fund Balances:
Nonspendable 0 0 0 0
Restricted 66,089 1,831 200,097 1,189
Committed 0 0 0 0
Total Fund Balances 66,089 1,831 200,097 1,189
Total Liabilities,Deferred Inflows of Resources
and Fund Balances $ 66,132 $ 1,832 $ 200,919 $ 1,189
- 144 -
CITY OF NAPOLEON, OHIO
M unicip al
Mandatory Probation Probation Court Handicap
Drug Fine Fire Equipment Service Officer Grant Improvement Parking Fines
$ 19,553 $ 528,841 $ 157,ll6 $ 10,466 $ 209,980 $ 1,100
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 24,646 0 0
13 347 102 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
$ 19,566 $ 529,188 $ 157,218 $ 35,112 $ 209,980 $ 1,100
$ 0 $ 9,975 $ 0 $ 0 $ 0 $ 0
0 0 0 506 0 0
0 0 0 0 0 0
0 9,975 0 506 0 0
13 347 102 12,323 0 0
0 0 0 0 0 0
13 347 102 12,323 0 0
0 0 0 0 0 0
19,553 518,866 157,116 22,283 209,980 1,100
0 0 0 0 0 0
19,553 518,866 157,ll6 22,283 209,980 1,100
$ 19,566 $ 529,188 $ 157,218 $ 35,112 $ 209,980 $ 1,100
(Continued)
- 145 -
CITY OF NAPOLEON, OHIO
Combining Balance Sheet
Nonmajor Special Revenue Funds
December 31, 2022
7ustice
Reinvestment
Police Pension Fire Pension Cemetery Incentive Grant
Assets:
Cash and Cash Equivalents $ 104,758 $ 52,379 $ 68,944 $ 13,839
Receivables:
Taxes 108,317 54,158 0 0
Accounts 0 0 0 0
Intergovernmental 2,979 5,958 0 10,678
Interest 0 0 0 0
Loans 0 0 0 0
Inventory of Supplies,at Cost 0 0 0 0
Total Assets $ 216,054 $ 112,495 $ 68,944 $ 24,517
Idabilities:
Accounts Payable $ 0 $ 0 $ 0 $ 50
Accrued Wages and Benefits Payable 16,528 ll,440 0 202
Unearned Revenue 0 0 0 0
Total Liabilitics 16,528 ll,440 0 252
Deferred Inflows of Resources:
Unavailable Amounts 7,557 8,247 0 5,339
Property Tax for Next Fiscal Year 103,563 51,781 0 0
Total Deferred Inflows of Resources 1 ll,120 60,028 0 5,339
Fund Balances:
Nonsp endable 0 0 0 0
Restricted 88,406 41,027 68,944 18,926
Committed 0 0 0 0
Total Fund Balances 88,406 41,027 68,944 18,926
Total Liabilities,Deferred Intlows of Resources
and Fund Balances $ 216,054 $ 112,495 $ 68,944 $ 24,517
- 146 -
CITY OF NAPOLEON, OHIO
Total Nonmajor
CertifiedPolice IndigentDrivers Special
Training Interlock/Alcohol One Ohio Revenue Funds
$ 19,004 $ 78,501 $ 44 $ 4,734,828
0 0 0 162,475
0 0 0 388,407
0 0 0 353,384
0 0 0 2,373
0 0 0 128,316
0 0 0 363,142
$ 19,004 $ 78,501 $ 44 $ 6,132,925
$ 0 $ 0 $ 0 $ 97,685
0 0 0 52,361
0 0 0 462,106
0 0 0 612,152
0 0 0 644,070
0 0 0 155,344
0 0 0 799,414
0 0 0 363,142
19,004 78,501 44 3,190,511
0 0 0 1,167,706
19,004 78,501 44 4,721,359
$ 19,004 $ 78,501 $ 44 $ 6,132,925
- 147 -
CITY OF NAPOLEON, OHIO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Special Revenue Funds
For�the Year Ended December 31, 2022
Street
Construction, EM S
Maintenance State Highway Motar Vehicle Transport
and Repair Improvement License Tax Service
Revenues:
Property Ta�ces $ 0 $ 0 $ 0 $ 0
Intergovernmental Revenues 521,698 42,300 118,543 0
Charges for Services 3,352 0 0 455,132
Investment Earnings 9,732 794 4,629 0
Fines and Farfeitures 0 0 0 674
All Other Revenue 5,857 0 0 0
Total Revenue 540,639 43,094 123,172 455,806
Expenditures:
Current:
Security of Persons and Property 0 0 0 359,507
L,eisure Time Activities 0 0 0 0
Community Enviornment 0 0 0 0
Transportation 375,262 21,698 160,893 0
General Government 0 0 0 0
Debt Service:
Principal Retirement 0 0 0 0
Interest&Fiscal Charges 0 0 0 0
Total Expenclitures 375,262 21,698 160,893 359,507
Excess(Deficiency)of Revenues
Over Eapenditures 165,377 21,396 (37,721) 96,299
Other Financing Sources(Uses):
Sale of Capital Assets 0 0 0 0
Transfers In 0 0 0 0
Transfers Out 0 0 0 (30,240)
Total Other F+inancing S ources(Uses) 0 0 0 (30,240)
Net Change In Fund Balance 165,377 21,396 (37,721) 66,059
Fund Balances at Beginning of Year 1,093,170 65,071 S13,374 416,901
Increase(Decrease)in Inventory Reserve 40,557 0 0 0
Fund Balances End of Year $ 1,299,104 $ 86,467 $ 475,653 $ 482,960
- 148 -
CITY OF NAPOLEON, OHIO
Shelter House
American Facility HoteUMotel FireLoss
Recreation Rescue Plan Repair Tax Claims CDBG Income
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
0 93,864 0 131,867 0 13,916
372,050 0 1,983 0 0 0
8,022 4,962 60 0 0 0
0 0 0 0 0 0
69,731 0 0 0 0 0
449,803 98,826 2,043 131,867 0 13,916
0 0 0 0 0 0
1,065,938 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 264,576 0 66,518 0 0
0 0 0 0 0 0
0 0 0 0 0 0
1,065,938 264,576 0 66,518 0 0
(616,135) (165,750) 2,043 65,349 0 13,916
0 0 0 0 0 0
731,504 0 0 0 0 0
0 0 0 (66,520) 0 0
731,504 0 0 (66,520) 0 0
ll5,369 (165,750) 2,043 (1,171) 0 13,916
573,136 165,750 4,188 28,511 94,772 34,079
(624) 0 0 0 0 0
$ 687,881 $ 0 $ 6,231 $ 27,340 $ 94,772 $ 47,995
(Continued)
- 149 -
CITY OF NAPOLEON, OHIO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Special Revenue Funds
For�the Year Ended December 31, 2022
Indigent Law Law
Drivers Alcohol Enforcement Court Enforcement
Treatment and Education Computerization Trust
Revenues:
Property Taxes $ 0 $ 0 $ 0 $ 0
Intergovernmental Revenues 0 0 0 0
Charges for Services 0 0 0 0
Investment Earnings 748 28 2,151 12
Fines andForfeitures 1,428 490 34,160 0
All Other Revenue 0 0 0 0
Total Revenue 2,176 518 36,311 12
Expenditures:
Current:
Security of Persons and Property 7,000 1,463 28,707 0
Leisure Time Activities 0 0 0 0
Community Enviomment 0 0 0 0
Transp ortation 0 0 0 0
General Government 0 0 0 0
Debt Service:
Principal Retirement 0 0 0 0
Interest&Fiscal Charges 0 0 0 0
Total Expenditures 7,000 1,463 28,707 0
Excess(Deficiency)of Revenues
Over Expenditures (4,824) (945) 7,604 12
Other Financing Sources(Uses):
Sale of Capital Assets 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 (4,824) (945) 7,604 12
Fund Balances at Beginning of Year 70,913 2,776 192,493 1,177
Increase(Decrease)in Inventory Reserve 0 0 0 0
Fund Balances End of Year $ 66,089 $ 1,831 $ 200,097 $ 1,]89
- 150 -
CITY OF NAPOLEON, OHIO
M unicip al
Mandatory Probation Probation Court Handicap
DrugFine Fire Equipment Service Officer Grant Improvement Parking Fines
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
0 0 0 49,281 0 0
0 0 0 0 0 0
203 5,158 1,632 0 0 0
470 0 25,292 0 57,115 0
1,681 12,900 0 0 0 0
2,354 18,058 26,924 49,281 57,ll5 0
576 39,588 5,659 43,505 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 65 0 0 0
0 0 0 0 0 0
0 0 0 0 55,000 0
0 0 0 0 9,600 0
576 39,588 5,724 43,505 64,600 0
1,778 (21,530) 21,200 5,776 (7,485) 0
0 0 0 0 0 0
0 84,000 0 0 0 0
0 0 0 0 0 0
0 84,000 0 0 0 0
1,778 62,470 21,200 5,776 (7,485) 0
17,775 456,396 135,916 16,507 217,465 1,100
0 0 0 0 0 0
$ 19,553 $ 518,866 $ 157,116 $ 22,283 $ 209,980 $ 1,100
(Continued)
- 151 -
CITY OF NAPOLEON, OHIO
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Nonmajor Special Revenue Funds
For�the Year Ended December 31, 2022
7ustice
Reinvestment
Police Pension Fire Pension Cemetery Incentive Grant
Revenues:
Property Ta�ces $ 92,488 $ 46,245 $ 0 $ 0
Intergovernmental Revenues 12,263 6,132 0 21,356
Charges for Services 0 0 2,358 0
Investment Earnings 0 0 0 0
Fines and Farfeitures 0 0 0 0
All Other Revenue 0 0 0 0
Total Revenue 104,751 52,377 2,358 21,356
Expenditures:
Current:
Security of Persons and Property 28,395 52,043 0 ll,714
L,eisure Time Activities 0 0 0 0
Communiry Enviornment 0 0 13,002 0
Transportation 0 0 0 0
General Government 0 0 0 0
Debt Service:
Principal Retirement 0 0 0 0
Interest&Fiscal Charges 0 0 0 0
Total Expenclitures 28,395 52,043 13,002 ll,714
Excess(Deficiency)of Revenues
Over Eapenditures 76,356 334 (10,644) 9,642
Other Financing Sources(Uses):
Sale of Capital Assets 0 0 9,568 0
Transfers In 0 0 0 0
Transfers Out 0 0 0 0
Total Other F+inancing S ources(Uses) 0 0 9,568 0
Net Change In Fund Balance 76,356 334 (1,076) 9,642
Fund Balances at Beginning of Year 12,050 40,693 70,020 9,284
Increase(Decrease)in Inventory Reserve 0 0 0 0
Fund Balances End of Year $ 88,406 $ 41,027 $ 68,944 $ 18,926
- 152 -
CITY OF NAPOLEON, OHIO
Tota�
Nonmajor
Sp ecial
Certified Police Indigent Drivers Revenue
Training Interlock/Alcohol One Ohio Funds
$ 0 $ 0 $ 0 $ 138,733
6,306 0 1,731 1,019,257
0 0 0 834,875
0 0 12 38,143
0 9,820 0 129,449
0 0 0 90,169
6,306 9,820 1,743 2,250,626
6,306 840 0 585,303
0 0 0 1,065,938
0 0 0 13,002
0 0 0 557,918
0 0 1,699 332,793
0 0 0 55,000
0 0 0 9,600
6,306 840 1,699 2,619,554
0 8,980 44 (368,928)
0 0 0 9,568
0 0 0 815,504
0 0 0 (96,760)
0 0 0 728,312
0 8,980 44 359,384
19,004 69,521 0 4,322,042
0 0 0 39,933
$ 19,004 $ 78,501 $ 44 $ 4,721,359
- 153 -
CITY OF NAPOLEON, OHIO
Combining Balance Sheet
Nonmajor Debt Service Funds
December 31, 2022
Total Nonmajor
General Bond Oakwood/ Debt Service
Retirement American TIF Funds
Assets:
Cash and Cash Equivalents $ 11,644 $ 27,756 $ 39,400
Total Assets $ 11,644 $ 27,756 $ 39,400
Total Liabilities 0 0 0
Fund Balances:
Restricted 0 27,756 27,756
Assigned 11,644 0 11,644
Total Fund Balances 11,644 27,756 39,400
Total Liabilities andFunds Balances $ 11,644 $ 27,756 $ 39,400
- 154 -
CITY OF NAPOLEON, OHIO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Debt Service Funds
For�the Year Ended December 31, 2022
Total Nonmajor
General Bond Oakwood/ Debt Service
Retirement American TIF Funds
Revenues:
Payments in Lieu of Taxes 0 33,301 33,301
Investment Earnings 0 164 164
Total Revenue 0 33,465 33,465
Expenditures:
Current:
General Government 0 5,709 5,709
Debt Service:
PrincipalRetirement 45,000 0 45,000
Interest&Fiscal Charges 9,250 0 9,250
Total FYpenditures 54,250 5,709 59,959
Excess(Deficiency)of Revenues
Over Expenditures (54,250) 27,756 (26,494)
Other Financing Sources(Uses):
Transfers In 56,500 0 56,500
Total Other Financing Sources(Uses) 56,500 0 56,500
Net Change In Fund Balance 2,250 27,756 30,006
Fund Balance at Beginning of Year 9,394 0 9,394
Fund Balance End of Year $ ll,644 $ 27,756 $ 39,400
- 155 -
CITY OF NAPOLEON, OHIO
Combining Balance Sheet
Nonmajor Capital Projects Funds
December 31, 2022
Tota1 Nonmajor
Fire Facility CIP Funding Capital Projects
Training Grant Reserve Funds
Assets:
Cash and Cash Equivalents $ 0 $ 72,437 $ 72,437
Total Assets $ 0 $ 72,437 $ 72,437
Liabilities:
Interfund L,oans Payable 2,800 0 2,800
Total Liabilities 2,800 0 2,800
Fund Balances:
Committed 0 72,437 72,437
Unassigned (2,800) 0 (2,800)
Total Fund Balances (2,800) 72,437 69,637
Total Liabilities and Funds Balances $ 0 $ 72,437 $ 72,�137
- 156 -
CITY OF NAPOLEON, OHIO
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Capital Projects Funds
For�the Year Ended December 31, 2022
Total Nonmajor
Fire Facility CIP Funding Capital Project
Training Grant Reserve Funds
Revenues:
Total Revenue $ 0 $ 0 $ 0
Expenditures:
Total Expenditures 0 0 0
Excess(Deficiency)of Revenues
Over Expenditures 0 0 0
Fund Balances(Deficits)at Beginning of Year (2,800) 72,437 69,637
Fund Balances(Deficits)End of Year $ (2,800) $ 72,437 $ 69,637
- 157 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis)
Major Funds- General Fund
For the Year Ended December 31, 2022
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Property Taxes $ 300,850 $ 308,319 $ 308,319 $ 0
Municipal Income Taxes 4,283,260 5,287,592 5,300,620 13,028
Other Local Taxes 490,000 488,712 488,712 0
Intergovernmental Revenues 244,410 353,180 353,180 0
Charges for Services 369,300 348,743 348,743 0
Licenses and Permits 72,300 78,783 78,783 0
Investment Earnings 68,000 143,367 143,367 0
Fines and Forfeitures 151,000 123,628 123,628 0
All Other Revenues 183,040 214,131 214,131 0
TotalRevenues 6,162,160 7,346,455 7,359,483 13,028
Expenclitures:
Security of Persons and Property:
Police:
Personal Services 2,043,734 2,186,095 2,135,262 50,833
Materials and Supplies 93,725 97,310 81,109 16,201
Contractual Services 233,440 240,977 195,767 45,210
Other Eapenditures 9,775 20,426 17,671 2,755
CapitalOutlay 2,300 2,300 2,300 0
TotalPolice 2,382,974 2,547,108 2,432,109 114,999
Fire:
Personal Services 1,348,105 1,352,570 1,170,839 181,731
Materials and Supplies 61,391 71,391 58,515 12,876
Contractual Services 132,431 140,841 ll6,876 23,965
CapitalOutlay 0 2,380 2,380 0
Total Fire 1,541,927 1,567,182 1,348,610 218,572
Police Code Enfarcement:
Personal Services 38,610 42,408 41,836 572
Materials and Supplies 2,600 2,600 1,626 974
Contractual Services 8,525 8,025 1,700 6,325
Other Eapenditures 500 500 0 500
TotalPolice Code Enfarcement 50,235 53,533 45,162 8,371
Total Security ofPersons andProperty 3,975,136 4,167,823 3,825,881 341,942
(Continued)
- 158 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis)
Major Funds- General Fund
For the Year Ended December 31, 2022
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Public Health and Welfare Services:
Cemetery:
Personal Services 106,980 109,958 89,063 20,895
Materials and Supplies 12,550 14,102 11,600 2,502
Contractual Services 14,220 14,344 8,332 6,012
Total Public Health and Welfare Services 133,750 138,404 108,995 29,409
Community Environment:
Econcomic Development:
Contractual Services 39,000 39,000 39,000 0
Total Community Environment 39,000 39,000 39,000 0
General Government:
City Council:
Personal Services 4,961 11,556 1,409 10,147
Materials and Supplies 620 620 308 312
Contractual Services 910 2,103 130 1,973
Other Eapenditures 2,023 2,023 1,200 823
Total City Council 8,514 16,302 3,047 13,255
M ay or:
Personal Services 2,059 4,767 601 4,166
Materials and Supplies 570 570 362 208
Contractual Services 2,700 2,700 0 2,700
Other Eapenditwes 100 100 0 100
Total Mayor 5,429 8,137 963 7,174
City M anager-Administration:
Personal Services 40,474 93,942 10,925 83,017
Materials and Supplies 354 817 36 781
Contractual Services 8,320 20,046 617 19,429
Other Eapenditures 680 680 680 0
Total City Manager-Administration 49,828 ll5,485 12,258 103,227
City M anager-Human Resources:
Personal Services 10,673 24,671 2,751 21,920
Materials and Supplies 148 920 58 862
Contractual Services 3,451 8,975 821 8,154
Other Eapenditwes 1,200 1,200 1,009 191
Total City Manager-Human Resources 15,472 35,766 4,639 31,127
(Continued)
- 159 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis)
Major Funds- General Fund
For the Year Ended December 31, 2022
Variance with
Final Budget
Original Positive
Budget Fina1 Budget Actual (Negative)
Law Director:
Personal Services 28,078 65,926 8,312 57,614
Materials and Supplies 171 394 14 380
Contractual Services 6,176 13,266 393 12,873
Other Expenditwes 6,000 5,948 4,503 1,445
Total Law Director 40,425 85,534 13,222 72,312
Finance-Administration:
Personal Services 46,796 60,498 9,892 50,606
Materials and Supplies 2,768 2,768 2,367 401
Contractual Services 10,864 72,164 72,164 0
Other Eapenditures 2,022 3,972 3,468 504
CapitalOutlay 0 820 360 460
Total Finance-Administration 62,450 140,222 88,251 51,971
Finance-Utility Billing:
Personal Services 16,216 37,485 4,715 32,770
Materials and Supplies 4,854 ll,351 1,310 10,041
Contractual Services 5,999 13,877 1,432 12,445
Other Eapenditures 0 6 6 0
Total Finance-Utility Billing 27,069 62,719 7,463 55,256
Finance-Income Tax Collection:
Personal Services 142,540 142,552 117,079 25,473
Materials and Supplies 6,000 6,000 2,941 3,059
Contractual Services 16,744 85,094 82,102 2,992
Total Finance-Income Tax Collection 165,284 233,646 202,122 31,524
Infortnation Systems:
Personal Services 165,660 169,094 165,594 3,500
Materials and Supplies 15,390 15,390 11,799 3,591
Contractual Services 71,695 71,695 58,153 13,542
Total Finance-Information Systems 252,745 256,179 235,546 20,633
City Engineer:
Personal Services 37,003 85,924 5,963 79,961
Materials and Supplies 806 1,987 187 1,800
Contractual Services 12,050 27,852 2,164 25,688
Other Eapenditures 1,000 1,000 1,000 0
Total City Engineer 50,859 116,763 9,314 107,449
(Continued)
- 160 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis)
Major Funds- General Fund
For the Year Ended December 31, 2022
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Municipal Court:
Personal Services 532,710 528,369 456,063 72,306
Materials and Supplies 35,081 39,406 28,323 11,083
Contractual Services 70,252 86,659 62,955 23,704
Other Eapenditures 230 230 100 130
Total Municipal Court 638,273 654,664 547,441 107,223
Service-Buildings,Property and Equipment:
Personal Services 10,4ll 24,065 3,006 21,059
Materials and Supplies 1,589 3,738 332 3,406
Contractual Services 411 883 66 817
Other Eapenditures 100 100 0 100
Total Service-Buildings,Property and Fn 12,Sll 28,786 3,404 25,382
M iscellaneous:
Materials and Supplies 1,308 3,655 434 3,221
Contractual Services 18,398 47,466 5,044 42,422
Other Expenditures 22,627 65,835 7,807 58,028
Total Miscellaneous 42,333 116,956 13,285 103,671
Total General Govemment 1,371,192 1,871,159 1,140,955 730,204
TotalExpenditures 5,519,078 6,216,386 5,114,831 1,101,555
Excess(Deficiency)of Revenues
Over(Under)E�enditures 643,082 1,130,069 2,244,652 1,114,583
Other F+inancing Sources(Uses):
Sale of Capital Assets 5,000 30,147 30,147 0
Transfers In 70,850 65,247 66,520 1,273
Transfers Out (1,737,522) (2,281,941) (2,281,941) 0
TotalOtherFinancingSources(Uses) (1,661,672) (2,186,547) (2,185,274) 1,273
Net Change In Fund Balance (1,018,590) (1,056,478) 59,378 l,ll 5,856
Fund Balance at Beginning of Year 2,482,108 2,482,108 2,482,108 0
Prior Year Encumbrances 96,005 96,005 96,005 0
Fund Balance at End of Year $ 1,559,523 $ 1,521,635 $ 2,637,491 $ l,ll 5,856
- 161 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis)
Major Funds—Debt Service Fund
For the Year Ended December 31, 2022
SPECIALASSESSMENT BOND RETIl2EMENT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 4,200 $ 6,740 $ 6,740 $ 0
Total Revenues 4,200 6,740 6,740 0
Expenclitures:
General Government:
Contractual Services 0 300 0 300
Total EYpenditures 0 300 0 300
Excess(Deficiency)of Revenues
Over(Under)E�penditures 4,200 6,440 6,740 300
Fund Balance at Beginning of Year 609,288 609,288 609,288 0
Fund Balance at End of Year $ 613,488 $ 615,728 $ 616,028 $ 300
- 162 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis)
Major Funds- Capital Project Funds
For the Year Ended December 31, 2022
CAPITAL IMPRO VEMENT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 55,000 $ 777,295 $ 777,295 $ 0
All Other Revenues 325,000 484,401 484,401 0
Total Revenues 380,000 1,261,696 1,261,696 0
Expenditures:
Capital Outlay:
City M anager 74,699 74,699 71,699 3,000
Law Director 2,000 2,000 0 2,000
Central Information System 34,758 34,758 34,487 271
Engineering 52,000 52,000 42,000 10,000
Municipal Court 87,496 87,496 4,845 82,651
Police 351,691 436,370 386,629 49,741
Fire 22,100 22,100 20,323 1,777
Parks and Recreation 52,791 54,933 54,725 208
Cemetery 15,000 15,000 14,331 669
Street Maintenance 1,671,205 1,744,547 1,728,609 15,938
Total E�enditures 2,363,740 2,523,903 2,357,648 166,255
Excess(Deficiency)of Revenues
Over(Under)E�enditures (1,983,740) (1,262,207) (1,095,952) 166,255
Other Financing Sources(Uses):
Transfers In 1,250,000 1,535,437 1,535,437 0
Transfers Out (107,700) (110,260) (110,260) 0
TotalOtherFinancingSources(Uses) 1,142,300 1,425,177 1,425,177 0
Net Change In Fund Balance (841,440) 162,970 329,225 166,255
Fund Balance at Beginning of Year 550,709 550,709 550,709 0
Prior Year Encumbrances 240,892 240,892 240,892 0
Fund Balance at End of Year $ (49,839) $ 954,571 $ 1,120,826 $ 166,255
- 163 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis)
Major Funds- Capital Project Funds
For the Year Ended December 31, 2022
AQUATIC CENTERFUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Property Taaces $ 282,400 $ 287,725 $ 287,725 $ 0
Intergovernmental Revenues 6,000 7,906 7,906 0
Investment Earnings 1,200 4,791 4,791 0
All Other Revenues 0 10,000 10,000 0
Total Revenues 289,600 310,422 310,422 0
Expenditures:
Leisure Time Activities:
CapitalOutlay 127,632 134,678 128,645 6,033
Debt Service:
Principal Retirement 180,000 180,000 170,000 10,000
Interest and Fiscal Charges 60,240 60,240 60,240 0
Total EYpenditures 367,872 374,918 358,885 16,033
Excess(Deficiency)of Revenues
Over(Under)E�penditures (78,272) (64,496) (48,463) 16,033
Fund Balance at Beginning of Year 301,498 301,498 301,498 0
Prior Year Encumbrances 18,132 18,132 18,132 0
Fund Balance at End of Year $ 241,358 $ 255,134 $ 271,167 $ 16,033
- 164 -
CITY OF NAPOLEON, 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
STREET CONSTRUCTION,MAINTENANCEAND REPAIRFUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 524,000 $ 525,173 $ 525,173 $ 0
Charges for Services 2,500 3,843 3,843 0
Investment Earnings 3,000 9,732 9,732 0
All Other Revenues 5,400 5,512 5,512 0
Total Revenues 534,900 544,260 544,260 0
Expenditures:
Transportation:
Street Maintenance:
Personal Services 224,480 225,877 202,296 23,581
Materials and Supplies 127,108 127,108 104,472 22,636
Contractual Services 56,082 57,159 24,182 32,977
Other Eapenditures 31,340 31,340 25,093 6,247
Capital Outlay 100 100 44 56
Total Street Maintenance 439,ll0 441,584 356,087 85,497
Ice and Snow Removal:
Personal Services 32,000 32,000 22,972 9,028
Materials and Supplies 101,550 101,550 63,949 37,601
Contractual Services 18,500 18,500 5,894 12,606
Other Eapenditures 7,000 12,497 12,497 0
Total Ice and Snow Removal 159,050 164,547 105,312 59,235
Storm Drainage:
Personal Services 11,000 ll,000 8,745 2,255
Materials and Supplies 5,000 5,000 1,584 3,416
Contractual Services 3,000 3,000 0 3,000
Other Eapenditures 500 500 0 500
Total Storm Drainage 19,500 19,500 10,329 9,171
Total E�enditures 617,660 625,631 471,728 153,903
Excess(Deficiency)of Revenues
Over(Under)Expenditures (82,760) (81,371) 72,532 153,903
Fund Balance at Beginning of Year 783,101 783,101 783,101 0
Prior Year Encumbrances 25,860 25,860 25,860 0
Fund Balance at End of Year $ 726,201 $ 727,590 $ 881,493 $ 153,903
- 165 -
CITY OF NAPOLEON, 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 TATE ffiGHWAY IMPRO VEMENT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 35,500 $ 42,582 $ 42,582 $ 0
Investment Earnings 215 794 794 0
Total Revenues 35,715 43,376 43,376 0
Expenditures:
Transportation:
Materials and Supplies 6,200 6,200 3,898 2,302
Contractual Services 28,700 28,700 17,800 10,900
Total E�enditures 34,900 34,900 21,698 13,202
Excess(Deficiency)of Revenues
Over(CTnder)E�enditures 815 8,476 21,678 13,202
Fund Balance at Beginning of Year 57,868 57,868 57,868 0
Fund Balance at End of Year $ 58,683 $ 66,344 $ 79,546 $ 13,202
- 166 -
CITY OF NAPOLEON, 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 LICENS E TAX FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 112,000 $ 119,193 $ 119,193 $ 0
Investment Earnings 2,250 4,629 4,629 0
Total Revenues 114,250 123,822 123,822 0
Expenditures:
Transportation:
Materials and Supplies 126,334 126,334 62,251 64,083
Contractual Services 155,000 155,000 116,435 38,565
Total E�enditures 281,334 281,334 178,686 102,648
Excess(Deficiency)of Revenues
Over(CTnder)E�enditures (167,084) (157,512) (54,864) 102,648
Fund Balance at Beginning of Year 356,619 356,619 356,619 0
Prior Year Encumbrances 145,334 145,334 145,334 0
Fund Balance at End of Year $ 334,869 $ 344,441 $ 447,089 $ 102,648
- 167 -
CITY OF NAPOLEON, 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
EMS TRANSPORT SERVICEFUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 5,000 $ 0 $ 0 $ 0
Charges for Services 423,000 457,071 459,071 2,000
Fines and Forfeitures 0 674 674 0
Total Revenues 428,000 457,745 459,745 2,000
Expenclitures:
Securiry of Persons and Property:
Materials and Supplies 55,092 55,092 41,424 13,668
Contractual Services 144,769 144,769 115,088 29,681
Other Eapenditures 205,000 205,000 205,000 0
CapitalOutlay 6,700 6,700 6,700 0
Total E�enditures 411,561 411,561 368,212 43,349
Excess(Deficiency)of Revenues
Over(Under)Expenditures 16,439 46,184 91,533 45,349
Other Financing Sources([7ses):
Transfers Out (28,800) (30,240) (30,240) 0
Total Other Financing Sources(Uses) (28,800) (30,240) (30,240) 0
Net Change In Fund Balance (12,361) 15,944 61,293 45,349
Fund Balance at Beginning of Year 326,334 326,334 326,334 0
Prior Year Encumbrances 7,ll 1 7,111 7,1 ll 0
Fund Balance at End of Year $ 321,084 $ 349,389 $ 394,738 $ 45,349
- 168 -
CITY OF NAPOLEON, 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
RECREATION FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Charges for Services $ 312,200 $ 370,018 $ 372,558 $ 2,540
Investment Earnings 2,700 8,022 8,022 0
All Other Revenues 38,000 69,843 69,843 0
Total Revenues 352,900 447,883 450,423 2,540
Expenditures:
Leisure Time Activities:
Administration:
Personal Services ll0,890 110,890 108,581 2,309
Materials and Supplies 1,100 1,100 359 741
Contractual Services 4,170 4,181 2,696 1,485
Other E�penditwes 2,000 2,000 0 2,000
Total Administration 118,160 118,171 1 l 1,636 6,535
Golf Course Operations:
Personal Services 186,750 204,508 186,652 17,856
Materials and Supplies 91,503 104,836 99,177 5,659
Contractual Services 23,550 30,899 27,158 3,741
Other Expenditwes 180 180 0 180
CapitalOutlay 48,722 46,068 45,929 139
Total Golf Course Operations 350,705 386,491 358,916 27,575
Pool Op erations:
Personal Services 108,080 111,693 106,502 5,191
Materials and Supplies 38,700 38,200 36,190 2,010
Contractual Services 23,630 38,696 37,318 1,378
CapitalOutlay 37,000 34,700 31,129 3,571
Total Pool Operations 207,410 223,289 211,139 12,150
Parks and Programs:
Personal Services 266,300 272,798 250,791 22,007
Materials and Supplies 103,000 108,090 100,075 8,015
Contractual Services 57,200 78,955 68,760 10,195
Total Parks and Programs 426,500 459,843 419,626 40,217
TotalExpenditures 1,102,775 1,187,794 1,101,317 86,477
Excess(Deficiency)of Revenues
Over(Under)E�enditures (749,875) (739,911) (650,894) 89,017
(Continued)
- 169 -
CITY OF NAPOLEON, 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
RECRF.ATION FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Other Financing Sources(Uses):
Transfers In 590,000 731,504 731,504 0
Total Other Financing Sowces(Uses) 590,000 731,504 731,504 0
Net Change In Fund Balance (159,875) (8,407) 80,610 89,017
Fund Balance at Beginning of Year 565,938 565,938 565,938 0
Prior Year Encumbrances 17,975 17,975 17,975 0
Fund Balance at End of Year $ 424,038 $ 575,506 $ 664,523 $ 89,017
- 170 -
CITY OF NAPOLEON, 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
AMERICAN RES CUE PLAN FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 429,000 $ 433,278 $ 433,278 $ 0
Investment Earnings 300 4,962 4,962 0
Total Revenues 429,300 438,240 438,240 0
Expenclitures:
General Government:
CapitalOutlay 1,049,147 1,055,073 388,603 666,470
Total EYpenditures 1,049,147 1,055,073 388,603 666,470
Excess(Deficiency)of Revenues
Over(Under)E�penditures (619,847) (616,833) 49,637 666,470
Fund Balance at Beginning of Year 216,094 216,094 216,094 0
Prior Year Encumbrances 190,147 190,147 190,147 0
Fund Balance at End of Year $ (213,606) $ (210,592) $ 455,878 $ 666,470
- 171 -
CITY OF NAPOLEON, 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 HELTER HOUS E FACILITY REPAIIi FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Charges for Services $ 2,500 $ 1,983 $ 1,983 $ 0
Investment Earnings 5 60 60 0
Total Revenues 2,505 2,043 2,043 0
Expenditures:
Total EYpenditures 0 0 0 0
Excess(Deficiency)of Revenues
Over(Under)E�penditures 2,505 2,043 2,043 0
Fund Balance at Beginning of Year 4,188 4,l 88 4,188 0
Fund Balance at End of Year $ 6,693 $ 6,231 $ 6,231 $ 0
- 172 -
CITY OF NAPOLEON, 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
HOTEUMOTEL TAX FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 100,000 $ 133,038 $ 133,038 $ 0
Total Revenues 100,000 133,038 133,038 0
Expenditures:
General Government:
Contractual Services 50,000 66,518 66,518 0
Total E�enditures 50,000 66,518 66,518 0
Excess(Deficiency)of Revenues
Over(Under)E�penditures 50,000 66,520 66,520 0
Other Financing Sources(Uses):
Transfers Out (50,000) (66,520) (66,520) 0
Total Other Financing Sowces(Uses) (50,000) (66,520) (66,520) 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
- 173 -
CITY OF NAPOLEON, 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
FII2ELOSS CI,AIMS FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Total Revenues $ 0 $ 0 $ 0 $ 0
Expenclitures:
General Government:
Other Elpenditures 31,000 31,000 0 31,000
Total EYpenditures 31,000 31,000 0 31,000
Excess(Deficiency)of Revenues
Over(Under)E�penditures (31,000) (31,000) 0 31,000
Fund Balance at Beginning of Year 94,772 94,772 94,772 0
Fund Balance at End of Year $ 63,772 $ 63,772 $ 94,772 $ 31,000
- 174 -
CITY OF NAPOLEON, 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
CDBG INCOME FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 34,000 $ 13,916 $ 13,916 $ 0
Total Revenues 34,000 13,916 13,916 0
Expenclitures:
Community Environment:
Contractual Services 34,000 34,000 0 34,000
Total EYpenditures 34,000 34,000 0 34,000
Excess(Deficiency)of Revenues
Over(Under)E�penditures 0 (20,084) 13,916 34,000
Fund Balance at Beginning of Year 34,079 34,079 34,079 0
Fund Balance at End of Year $ 34,079 $ 13,995 $ 47,995 $ 34,000
- 175 -
CITY OF NAPOLEON, 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
INDIGENT DRIVERS ALCOHOL TREATMENT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 750 $ 748 $ 748 $ 0
Fines and Forfeitures 2,000 1,491 1,491 0
Total Revenues 2,750 2,239 2,239 0
Expenditures:
Security of Persons and Property:
Contractual Services 25,000 25,000 7,000 18,000
Total E�enditures 25,000 25,000 7,000 18,000
Excess(Deficiency)of Revenues
Over(Under)E�enditures (22,250) (22,761) (4,761) 18,000
Fund Balance at Beginning of Year 70,800 70,800 70,800 0
Fund Balance at End of Year $ 48,550 $ 48,039 $ 66,039 $ 18,000
- 176 -
CITY OF NAPOLEON, 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
LAW ENFORCEMENT AND EDUCATION FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 50 $ 28 $ 28 $ 0
Fines and Forfeitures 800 490 490 0
Total Revenues 850 518 518 0
Expenditures:
Security of Persons and Property:
Personal Services 0 0 (208) 208
Contractual Services 2,200 2,200 2,153 47
Cap ital Outlay 500 500 0 500
Total E�enditures 2,700 2,700 1,945 755
Excess(Deficiency)of Revenues
Over(Under)E�enditures (1,850) (2,182) (1,427) 755
Fund Balance at Beginning of Year 2,426 2,426 2,426 0
Prior Year Encumbrances 300 300 300 0
Fund Balance at End of Year $ 876 $ 544 $ 1,299 $ 755
- 177 -
CITY OF NAPOLEON, 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
COURT COMPUTF.RI7.ATION FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 1,500 $ 2,151 $ 2,151 $ 0
Fines and Forfeitures 30,000 34,151 34,151 0
Total Revenues 31,500 36,302 36,302 0
Expenditures:
Security of Persons and Property:
Contractual Services 9,500 10,350 10,152 198
Other Eapenditures 10,000 10,008 10,008 0
CapitalOutlay 26,000 25,150 7,855 17,295
Total E�enditures 45,500 45,508 28,015 17,493
Excess(Deficiency)of Revenues
Over(Under)E�enditures (14,000) (9,206) 8,287 17,493
Fund Balance at Beginning of Year 189,731 189,731 189,731 0
Fund Balance at End of Year $ 175,731 $ 180,525 $ 198,018 $ 17,493
- 178 -
CITY OF NAPOLEON, 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
LAW ENFORCEMENT TRUST FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 15 $ 12 $ 12 $ 0
Total Revenues 15 12 12 0
Expenclitures:
Security of Persons and Property:
Other Eapenditures 500 0 0 0
Capital Outlay 500 0 0 0
Total E�enditures 1,000 0 0 0
Excess(Deficiency)of Revenues
Over(Under)E�enditures (985) 12 12 0
Fund Balance at Beginning of Year 1,177 1,177 1,177 0
Fund Balance at End of Year $ 192 $ 1,189 $ 1,189 $ 0
- 179 -
CITY OF NAPOLEON, 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
MANDATORY DRUG FINE FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 200 $ 203 $ 203 $ 0
Fines and Forfeitures 750 380 380 0
All Other Revenues 0 0 1,681 1,681
Total Revenues 950 583 2,264 1,681
Expenditures:
Security of Persons and Property:
Personal Services 3,000 3,000 0 3,000
Other Eapenditures 1,000 1,000 76 924
CapitalOutlay 2,000 2,000 500 1,500
Total E�enditures 6,000 6,000 576 5,424
Excess(Deficiency)of Revenues
Over(Under)Expenditures (5,050) (5,417) 1,688 7,105
Fund Balance at Beginning of Year 17,775 17,775 17,775 0
Fund Balance at End of Year $ 12,725 $ 12,358 $ 19,463 $ 7,105
- 180 -
CITY OF NAPOLEON, 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
FIl2E EQUIPMENT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 2,200 $ 5,158 $ 5,158 $ 0
All Other Revenues 0 12,900 12,900 0
Total Revenues 2,200 18,058 18,058 0
Expenclitures:
Security of Persons and Property:
CapitalOutlay 74,900 74,900 45,889 29,011
Total E�enditures 74,900 74,900 45,889 29,011
Excess(Deficiency)of Revenues
Over(Under)E�penditures (72,700) (56,842) (27,831) 29,011
Other Financing Sources(Uses):
Transfers In 80,000 84,000 84,000 0
Total Other Financing Sources(Uses) 80,000 84,000 84,000 0
Net Change In Fund Balance 7,300 27,158 56,169 29,011
Fund Balance at Beginning of Year 446,396 446,396 446,396 0
Prior Year Encumbrances 10,000 10,000 10,000 0
Fund Balance at End of Year $ 463,696 $ 483,554 $ 512,565 $ 29,011
- 181 -
CITY OF NAPOLEON, 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 PROBATION SERVICE FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Investment Earnings $ 1,500 $ 1,632 $ 1,632 $ 0
Fines and Forfeitures 23,700 26,347 26,347 0
Total Revenues 25,200 27,979 27,979 0
Expenditures:
Security of Persons and Property:
Personal Services 27,885 27,885 5,659 22,226
Contractual Services 500 500 0 500
Other Expenditures 500 500 65 435
Total E�enditures 28,885 28,885 5,724 23,161
Excess(Deficiency)of Revenues
Over(Under)E�enditures (3,685) (906) 22,255 23,161
Fund Balance at Beginning of Year 133,618 133,618 133,618 0
Fund Balance at End of Year $ 129,933 $ 132,712 $ 155,873 $ 23,161
- 182 -
CITY OF NAPOLEON, 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
PROBATION OFFICER GRANT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 53,000 $ 49,292 $ 49,292 $ 0
Total Revenues 53,000 49,292 49,292 0
Expenclitures:
Security of Persons and Property:
Personal Services 950 54,000 43,072 10,928
Total EYpenditures 950 54,000 43,072 10,928
Excess(Deficiency)of Revenues
Over(Under)E�penditures 52,050 (4,708) 6,220 10,928
Fund Balance at Beginning of Year 4,246 4,246 4,246 0
Fund Balance at End of Year $ 56,296 $ (462) $ 10,466 $ 10,928
- 183 -
CITY OF NAPOLEON, 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
COURT IMPROVEMENT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Fines and Forfeitures $ 60,000 $ 57,058 $ 57,058 $ 0
Total Revenues 60,000 57,058 57,058 0
Expenclitures:
Security of Persons and Property:
Debt Service:
Principal Retirement 55,000 55,000 55,000 0
Interest and Fiscal Charges 9,600 9,600 9,600 0
Total E�enditures 64,600 64,600 64,600 0
Excess(Deficiency)of Revenues
Over(Under)Expenditures (4,600) (7,542) (7,542) 0
Fund Balance at Beginning of Year 212,668 212,668 212,668 0
Fund Balance at End of Year $ 208,068 $ 205,126 $ 205,126 $ 0
- 184 -
CITY OF NAPOLEON, 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
IIANDICAP PARKING FINES FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Total Revenues $ 0 $ 0 $ 0 $ 0
Expenditures:
Total E�enditures 0 0 0 0
Excess(Deficiency)of Revenues
Over(Under)E�penditures 0 0 0 0
Fund Balance at Beginningof Year 1,100 1,100 1,100 0
Fund Balance at End of Year $ 1,100 $ 1,100 $ 1,100 $ 0
- 185 -
CITY OF NAPOLEON, 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 PENSION FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Property Taxes $ 77,736 $ 92,495 $ 92,495 $ 0
Intergovernmental Revenues 12,000 12,263 12,263 0
Total Revenues 89,736 104,758 104,758 0
Expenditures:
Security of Persons and Property:
Personal Services 89,736 89,736 29,169 60,567
Total E�enditures 89,736 89,736 29,169 60,567
Excess(Deficiency)of Revenues
Over(Under)E�enditures 0 15,022 75,589 60,567
Fund Balance at Beginning of Year 29,169 29,169 29,169 0
Fund Balance at End of Year $ 29,169 $ 44,191 $ 104,758 $ 60,567
- 186 -
CITY OF NAPOLEON, 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
FIl2E PENSION FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Property Taxes $ 39,005 $ 46,248 $ 46,248 $ 0
Intergovernmental Revenues 5,550 6,132 6,132 0
Total Revenues 44,555 52,380 52,380 0
Expenditures:
Security of Persons and Property:
Personal Services 44,555 80,055 52,585 27,470
Total E�enditures 44,555 80,055 52,585 27,470
Excess(Deficiency)of Revenues
Over(Under)E�enditures 0 (27,675) (205) 27,470
Fund Balance at Beginning of Year 52,584 52,584 52,584 0
Fund Balance at End of Year $ 52,584 $ 24,909 $ 52,379 $ 27,470
- 187 -
CITY OF NAPOLEON, 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
CEMETERY FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Charges for Services $ 4,000 $ 2,358 $ 2,358 $ 0
Total Revenues 4,000 2,358 2,358 0
Expenditures:
Community Environment:
Materials and Supplies 6,000 6,000 4,013 1,987
CapitalOutlay 0 9,568 9,568 0
Total Expenditures 6,000 15,568 13,581 1,987
Excess(Deficiency)of Revenues
Over(C7nder)E�enditures (2,000) (13,210) (11,223) 1,987
Other Financing Sources(Uses):
Sa1e of Capital Assets 0 9,568 9,568 0
Total Other Financing Sowces(Uses) 0 9,568 9,568 0
Net Change In Fund Balance (2,000) (3,642) (1,655) 1,987
Fund Balance at Beginning of Year 70,020 70,020 70,020 0
Fund Balance at End of Year $ 68,020 $ 66,378 $ 68,365 $ 1,987
- 188 -
CITY OF NAPOLEON, 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
JUS TICE RF.INVES TMENT INCENTIVE GRANT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 21,356 $ 21,356 $ 21,356 $ 0
Total Revenues 21,356 21,356 21,356 0
Expenditures:
Securiry of Persons and Property:
Personal Services 18,730 18,730 10,822 7,908
Materials and Supplies 1,500 1,500 320 1,180
Contractual Services 2,950 610 556 54
Cap ital Outlay 850 0 0 0
Total E�enditures 24,030 20,840 11,698 9,142
Excess(Deficiency)of Revenues
Over(Under)E�enditures (2,674) 516 9,658 9,142
Fund Balance at Beginningof Year 4,181 4,181 4,181 0
Fund Balance at End of Year $ 1,507 $ 4,697 $ 13,839 $ 9,142
- 189 -
CITY OF NAPOLEON, 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
CERTIF'IED POLICE TRAINING FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 0 $ 6,306 $ 6,306 $ 0
Total Revenues 0 6,306 6,306 0
Expenclitures:
Security of Persons and Property:
Personal Services 5,000 ll,306 6,306 5,000
Contractual Services 500 500 0 500
Total E�enditures 5,500 11,806 6,306 5,500
Excess(Deficiency)of Revenues
Over(Under)E�enditures (5,500) (5,500) 0 5,500
Fund Balance at Beginning of Year 19,004 19,004 19,004 0
Fund Balance at End of Year $ 13,504 $ 13,504 $ 19,004 $ 5,500
- 19� -
CITY OF NAPOLEON, 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
INDIGENT DRIVERS INTERIACK/ALCOHOL FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Fines and Forfeitures $ 6,500 $ 9,945 $ 9,945 $ 0
Total Revenues 6,500 9,945 9,945 0
Expenclitures:
Security of Persons and Property:
Contractual Services 5,000 5,000 840 4,160
Total EYpenditures 5,000 5,000 840 4,160
Excess(Deficiency)of Revenues
Over(Under)E�penditures 1,500 4,945 9,105 4,160
Fund Balance at Beginning of Year 69,241 69,241 69,241 0
Fund Balance at End of Year $ 70,741 $ 74,186 $ 78,346 $ 4,160
- 191 -
CITY OF NAPOLEON, 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 OHIO FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Intergovernmental Revenues $ 0 $ 1,731 $ 1,731 $ 0
Investment Earnings 0 12 12 0
Total Revenues 0 1,743 1,743 0
Expenclitures:
General Government:
Contractual Services 0 1,699 1,699 0
Total EYpenditures 0 1,699 1,699 0
Excess(Deficiency)of Revenues
Over(Under)E�penditures 0 44 44 0
Fund Balance at Beginning of Year 0 0 0 0
Fund Balance at End of Year $ 0 $ 44 $ 44 $ 0
- 192 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis)
Nonmajor Debt Service Fund
For the Year Ended December 31, 2022
GENEIZAL BOND RETII2EMENT FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Total Revenues $ 0 $ 0 $ 0 $ 0
Expenclitures:
Debt Service:
Principal Retirement 45,000 45,000 45,000 0
Interest and Fiscal Charges 9,250 9,250 9,250 0
Total E�enditures 54,250 54,250 54,250 0
Excess(Deficiency)of Revenues
Over(Under)E�penditures (54,250) (54,250) (54,250) 0
Other Financing Sources(Uses):
Transfers In 56,500 56,500 56,500 0
Total Other Financing Sowces(Uses) 56,500 56,500 56,500 0
Net Change In Fund Balance 2,250 2,250 2,250 0
Fund Balance at Beginning of Year 9,394 9,394 9,394 0
Fund Balance at End of Year $ 1 1,644 $ 11,644 $ 1 1,644 $ 0
- 193 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis)
Nonmajor Debt Service Fund
For the Year Ended December 31, 2022
OAKWOOD/AMERICAN TIF FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Payments in Lieu of Taxes $ 0 $ 33,301 $ 33,301 $ 0
Investment Earnings 0 164 164 0
Total Revenues 0 33,465 33,465 0
Expenditures:
General Government:
Contractual Services 0 5,709 5,709 0
Total E�enditures 0 5,709 5,709 0
Excess(Deficiency)of Revenues
Over(Under)E�enditures 0 27,756 27,756 0
Fund Balance at Beginning of Year 0 0 0 0
Fund Balance at End of Year $ 0 $ 27,756 $ 27,756 $ 0
- 194 -
CITY OF NAPOLEON, OHIO
Schedule of Revenues, Expenditures and Changes in
Fund Balance—Budget and Actual(Non-GAAP Budgetary Basis)
Nonmajor Capital Projects Fund
For the Year Ended December 31, 2022
CIP FUNDING RES ERVE FUND
Variance with
Final Budget
Original Positive
Budget Final Budget Actual (Negative)
Revenues:
Total Revenues $ 0 $ 0 $ 0 $ 0
Expenclitures:
Total E�enditures 0 0 0 0
Excess(Deficiency)of Revenues
Over(Under)Expenditures 0 0 0 0
Fund Balance at Beginning of Year 72,437 72,437 72,437 0
Fund Balance at End of Year $ 72,437 $ 72,437 $ 72,437 $ 0
- 195 -
CITY OF NAPOLEON, OHIO
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- 196 -
STATISTICAL SECTION
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CITY OF NAPOLEON, OHIO
,�,7 TATISTICAL 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 13
These schedules contain trend information to help the reader understand how
the City's financial position has changed over time.
Revenue Capacity S 14—S 17
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 source,the income tax.
Debt Capacity S 18—S 27
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 28—S 31
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 32—S 37
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
annual comprehensive financial reports for the relevant year.
- 51 -
City of Napoleon, Ohio
Net Position by Component
Last Ten Years
(accrual basis of accountin�
2013 2014 2015
Governmental Activities:
Net Investment in Capital Assets $32,448,052 $31,960,590 $33,433,083
Restricted 2,768,235 2,990,372 2,806,677
Unrestricted(Deficit) 3,533,369 3,332,982 (1,392,832)
Total Governmental Activities Net Position $38,749,656 $38,283,944 $34,846,928
Business-type Activities:
Net Investment in Capital Assets $20,699,687 $20,700,229 $22,542,372
Unrestricted 19,237,386 19,439,411 18,129,077
Total Business-type Activities Net Position $39,937,073 $40,139,640 $40,671,449
Primary Government:
Net Investment in Capital Assets $53,147,739 $52,660,819 $55,975,455
Restricted 2,768,235 2,990,372 2,806,677
Unrestricted 22,770,755 22,772,393 16,736,245
Total Primary Government Net Position $78,686,729 $78,423,584 $75,518,377
Source: Finance Director's Office
- 52 -
City of Napoleon, Ohio
2016 201� 2o1g 2019 2020 2021 2022
$34,214,705 $35,367,308 $37,840,220 $38,273,373 $40,207,246 $41,700,091 $41,100,079
2,858,956 2,935,327 3,177,822 3,172,484 5,721,764 4,386,895 4,450,723
(1,146,059) (1,616,213) (8,420,054) (6,217,292) (7,937,540) (3,186,538) (1,374,449)
$35,927,602 $36,686,422 $32,597,988 $35,228,565 $37,991,470 $42,900,448 $44,176,353
$23,498,665 $25,425,370 $26,268,146 $25,176,518 $25,983,867 $21,190,379 $22,504,359
19,777,496 18,808,213 17,042,982 16,241,395 15,841,205 23,805,267 26,994,096
$43,276,161 $44,233,583 $43,311,128 $41,417,913 $41,825,072 $44,995,646 $49,498,455
$57,713,370 $60,792,678 $64,108,366 $63,449,891 $66,191,113 $62,890,470 $63,604,438
2,858,956 2,935,327 3,177,822 3,172,484 5,721,764 4,386,895 4,450,723
18,631,437 17,192,000 8,622,928 10,024,103 7,903,665 20,618,729 25,619,647
$79,203,763 $80,920,005 $75,909,116 $76,646,478 $79,816,542 $87,896,094 $93,674,808
- 53 -
City of Napoleon, Ohio
Changes in Net Position
Last Ten Years
(accrual basis of accountin�
2013 2014 2015
Expenses
Governmental Activities:
Security of Persons and Property $3,509,977 $3,897,632 $3,654,789
Public Health and Welfare Services ll9,347 121,621 130,226
Leisure Time Activities 837,829 979,834 885,152
Community Environment 889,241 152,816 133,083
Transportation 1,081,351 1,646,040 1,508,973
General Government 1,037,778 1,089,719 895,716
Interest and Fiscal Charges 67,818 71,185 49,078
Total Governmental Activities Expenses 7,543,341 7,958,847 7,257,017
Business-type Activities:
Electric 15,784,619 16,111,027 14,525,667
Water 2,471,001 2,725,757 2,483,792
Sewer 3,175,055 3,114,530 3,298,500
Sanitation 718,019 742,677 756,482
Total Business-type Activities Expenses 22,148,694 22,693,991 21,064,441
Total Primary Government Expenses $29,692,035 $30,652,838 $28,321,458
Program Revenues
Governmental Activities:
Charges for Services
Security of Persons and Property $1,204,603 $1,103,728 $1,062,603
Public Health and Welfare Services 18,877 18,668 22,665
Leisure Time Activities 275,990 278,108 240,539
Communiry Environment 4,742 6,288 5,280
Transportation 13,878 8,997 14,115
General Government 100,503 42,022 21,996
Operating Grants and Contributions 1,517,992 950,214 586,830
Capital Grants and Contributions 66,201 76,151 931,660
Total Governmental Activities Progr�am Revenues 3,202,786 2,484,176 2,885,688
- 54 -
City of Napoleon, Ohio
2016 201� 2o1g 2019 2020 2021 2022
$3,546,651 $4,052,817 $4,181,547 $1,528,894 $3,972,294 $4,072,196 $4,187,848
107,520 121,144 166,772 163,755 93,016 75,470 94,765
896,040 1,037,985 1,069,024 1,213,411 1,618,929 3,215,616 1,038,018
1,057,736 543,782 53,119 44,359 80,173 88,315 52,002
225,516 721,483 1,065,866 1,649,584 720,992 1,475,757 1,557,945
1,108,794 1,118,076 2,079,503 1,074,671 1,246,393 452,869 2,233,563
64,017 43,997 59,666 52,836 98,944 103,000 73,432
7,006,274 7,639,284 8,675,497 5,727,510 7,830,741 9,483,223 9,237,573
15,578,395 16,376,184 17,946,062 18,812,3 83 17,546,472 15,002,149 16,494,445
2,820,862 3,165,477 3,425,305 3,592,861 3,597,475 3,237,649 3,355,622
3,322,734 3,601,304 3,711,983 3,394,400 4,684,426 6,325,475 2,277,113
829,618 848,385 837,422 934,836 934,847 722,412 902,343
22,551,609 23,991,350 25,920,772 26,734,480 26,763,220 25,287,685 23,029,523
$29,557,883 $31,630,634 $34,596,269 $32,461,990 $34,593,961 $34,770,908 $32,267,096
$1,045,704 $1,135,063 $1,189,906 $1,068,296 $1,238,565 $1,243,403 $1,115,612
14,655 16,752 21,152 18,105 19,515 23,500 14,403
260,055 243,119 252,546 240,154 266,306 513,539 466,881
3,270 4,222 5,092 4,260 7,890 4,880 11,926
7,486 6,783 11,188 5,924 10,000 21,188 8,133
51,590 138,934 97,747 77,391 30,955 89,605 13,131
621,783 697,848 664,597 785,332 1,606,197 902,153 701,307
802,876 237,473 2,156,969 160,476 752,003 3,872,102 777,295
2,807,419 2,480,194 4,399,197 2,359,938 3,931,431 6,670,370 3,108,688
(Continued)
- SS -
City of Napoleon, Ohio
Changes in Net Position
Last Ten Years
(accrual basis of accountin�
2013 2014 2015
Business-type Activities:
Charges for Services
Electric 15,693,889 15,391,341 14,970,816
Water 2,862,800 3,218,817 3,309,819
Sewer 3,340,375 3,343,019 3,904,365
Sanitation 867,760 867,626 860,787
Capital Grants and Contributions 3,455,321 0 167,351
Total Business-type Activities Program Revenues 26,220,145 22,820,803 23,213,138
Total Primary Government Program Revenues 29,422,931 25,304,979 26,098,826
Net(Expense)/Revenue
Governmental Activities (4,340,555) (5,474,671) (4,371,329)
Business-type Activities 4,071,451 126,812 2,148,697
Total Primary Government Net (Expense)/Revenue ($269,104) ($5,347,859) ($2,222,632)
General Revenues and Other Changes in Net Position
Governmental Activities:
Property Taxes $368,837 $371,815 $365,123
Payments in Lieu of Taxes 0 0 0
Municipal Income Taxes 3,588,267 3,821,982 4,097,468
Other Local Taxes (kWh Tax) 524,529 512,414 520,952
Grants and Entitlements not
Restricted to Specific Programs 448,430 50,375 798,480
Investment Earnings 49,515 40,475 8,164
Miscellaneous 277,279 211,898 397,832
Transfers 2,756,953 0 116,754
Total Governmental Activities 8,013,810 5,008,959 6,304,773
Business-type Activities:
Investment Earnings 88,142 75,755 103,486
Transfers (2,756,953) 0 (116,754)
Total Business-type Activities (2,668,811) 75,755 (13,268)
Total Primary Government $5,344,999 $5,084,714 $6,291,505
Change in Net Position
Governmental Activities $3,673,255 ($465,712) $1,933,444
Business-type Activities 1,402,640 202,567 2,135,429
Total Primary Government Change in Net Position $5,075,895 ($263,145) $4,068,873
Source: Finance Director's Office
- 56 -
City of Napoleon, Ohio
2016 201� 2o1g 2019 2020 2021 2022
16,250,617 15,591,655 17,557,232 16,889,912 16,667,338 19,373,830 17,484,705
3,233,144 3,390,516 3,590,647 2,819,295 4,073,887 3,988,547 4,372,307
4,054,675 4,036,930 3,932,884 4,049,241 3,703,599 4,555,774 4,115,241
874,071 892,891 879,260 836,225 891,572 894,677 909,534
624,929 839,103 324,231 70,219 1,684,785 387,441 461,632
25,037,436 24,751,095 26,284,254 24,664,892 27,021,181 29,200,269 27,343,419
27,844,855 27,231,289 30,683,451 27,024,830 30,952,612 35,870,639 30,452,107
(4,198,855) (5,159,090) (4,276,300) (3,367,572) (3,899,310) (2,812,853) (6,128,885)
2,485,827 759,745 363,482 (2,069,588) 257,961 3,912,584 4,313,896
($1,713,028) ($4,399,345) ($3,912,818) ($5,437,160) ($3,641,349) $1,099,731 ($1,814,989)
$358,670 $350,199 $385,234 $389,773 $674,149 $717,005 $752,256
0 0 0 0 0 0 33,301
4,120,044 4,212,894 3,272,728 4,017,857 4,289,399 4,904,826 5,894,014
515,950 483,133 497,718 477,525 470,521 489,124 488,712
5,422 340,970 335,637 384,626 215,104 716,775 646,823
99,506 64,846 93,922 560,642 371,297 (201,552) (969,943)
79,387 465,868 343,819 140,351 647,995 259,211 559,627
100,550 0 0 27,375 (6,250) 836,442 0
5,279,529 5,917,910 4,929,058 5,998,149 6,662,215 7,721,831 7,404,790
219,435 197,677 331,845 203,748 142,948 94,432 188,913
(100,550) 0 0 (27,375) 6,250 (836,442) 0
118,885 197,677 331,845 176,373 149,198 (742,010) 188,913
$5,398,414 $6,115,587 $5,260,903 $6,174,522 $6,811,413 $6,979,821 $7,593,703
$1,080,674 $758,820 $652,758 $2,630,577 $2,762,905 $4,908,978 $1,275,905
2,604,712 957,422 695,327 (1,893,215) 407,159 3,170,574 4,502,809
$3,685,386 $1,716,242 $1,348,085 $737,362 $3,170,064 $8,079,552 $5,778,714
- 57 -
City of Napoleon, Ohio
Fund Balances, Governmental Funds
Last Ten Years
(modified accrual basis of accounting)
2013 2014 2015 2016
General Fund
Nonspendable $7,706 $9,120 $9,409 $44,283
Committed 19,966 11,772 13,022 11,196
Assigned 871,172 777,758 838,819 590,274
Unassigned 1,030,178 1,162,723 1,265,731 1,301,015
Total General Fund 1,929,022 1,961,373 2,126,981 1,946,768
All Other Governmental Funds
Nonspendable $177,587 $170,935 $229,196 $252,736
Restricted 2,391,541 2,434,009 2,279,047 2,442,470
Committed 1,439,374 1,555,291 1,912,226 2,586,537
Assigned 27,767 9,554 28,749 13,650
Unassigned (29,206) (27,902) (28,492) (29,300)
Total All Other Governmental Funds 4,007,063 4,141,887 4,420,726 5,266,093
Total Governmental Funds $5,936,085 $6,103,260 $6,547,707 $7,212,861
Source: Finance Director's Office
- 58 -
City of Napoleon, Ohio
201� 2o1g 2019 2020 2021 2022
$47,322 $16,404 $57,417 $18,334 $15,599 $19,678
32,808 54,198 41,611 21,938 7,779 13,590
498,796 1,054,526 691,949 46,906 94,575 68,755
1,405,609 655,332 1,648,729 3,104,136 3,111,642 2,919,552
1,984,535 1,780,460 2,439,706 3,191,314 3,229,595 3,021,575
$330,192 $344,474 $280,242 $357,437 $323,209 $363,142
2,580,649 2,798,732 3,029,161 5,422,310 3,926,117 4,112,097
2,522,755 1,612,463 1,487,789 1,236,769 1,768,986 2,651,144
36,757 34,596 21,995 55,235 9,394 11,644
(40,465) (47,434) (133,606) (29,477) (2,800) (2,800)
5,429,888 4,742,831 4,685,581 7,042,274 6,024,906 7,135,227
$7,414,423 $6,523,291 $7,125,287 $10,233,588 $9,254,501 $10,156,802
- 59 -
City of Napoleon, Ohio
Changes in Fund Balances, Governmental Funds
Last Ten Years
(modified accrual basis of accounting)
2013 2014 2015 2016
Revenues:
Taxes $4,458,946 $4,660,798 $4,969,922 $4,998,063
Intergovernmental Revenues 1,719,738 1,248,507 2,272,156 1,283,816
Charges for Services 1,012,086 819,227 869,489 865,305
Licenses and Permits 73,435 70,252 70,735 75,027
Investment Earnings 54,013 34,162 11,047 89,533
Special Assessments 49,694 28,815 37,142 33,107
Fines and Forfeitures 369,351 354,229 306,292 363,060
All Other Revenue 365,253 464,363 339,064 343,855
Total Revenue 8,102,516 7,680,353 8,875,847 8,051,766
Expenditures:
Current:
Security of Persons and Property 3,293,773 3,559,821 3,426,149 3,271,532
Public Health and Welfare Services 105,132 107,365 111,598 100,039
Leisure Time Activities 722,535 717,360 792,662 808,066
Community Environment 885,933 151,254 132,277 192,306
Transportation 503,534 554,015 671,335 498,095
General Government 897,863 936,313 852,115 1,030,993
CapitalOutlay 471,986 1,177,632 2,271,611 1,337,778
Debt Service:
Principal Retirement 129,951 119,151 124,151 124,351
Interest and Fiscal Charges 70,247 71,499 49,428 64,423
Total Expenditures 7,080,954 7,394,410 8,431,326 7,427,583
Excess (Deficiency) of Revenues
Over Expenditures 1,021,562 285,943 444,521 624,183
- S 10 -
City of Napoleon, Ohio
201� 2o1g 2019 2020 2021 2022
$5,045,738 $4,131,094 $4,869,080 $5,394,521 $6,095,962 $7,372,342
1,223,001 3,107,470 1,204,837 1,917,555 1,774,292 2,151,787
997,003 952,986 985,505 1,041,551 1,418,304 1,077,177
70,563 71,387 75,182 95,475 65,926 78,783
61,866 88,365 561,244 376,904 (200,465) (965,642)
11,526 22,995 8,787 2,493 467 0
332,305 327,219 277,376 244,488 301,672 253,674
429,527 477,490 280,640 1,122,416 352,081 804,089
8,171,529 9,179,006 8,262,651 10,195,403 9,808,239 10,772,210
3,664,792 3,510,952 3,708,022 4,318,562 4,222,031 4,334,089
104,137 108,592 108,888 108,905 106,266 107,677
858,514 879,372 940,402 2,275,228 3,599,187 1,171,133
137,222 45,707 44,359 80,173 88,315 52,002
507,430 498,793 523,974 393,793 523,594 557,918
795,734 1,332,128 474,245 934,074 1,103,138 1,403,373
1,683,118 3,439,910 1,585,880 2,188,179 2,138,986 1,960,117
119,349 107,200 87,200 92,354 3,780,000 270,000
44,456 59,971 53,159 39,979 162,417 79,090
7,914,752 9,982,625 7,526,129 10,431,247 15,723,934 9,935,399
256,777 (803,619) 736,522 (235,844) (5,915,695) 836,811
(Continued)
- 511 -
City of Napoleon, Ohio
Changes in Fund Balances, Governmental Funds
Last Ten Years
(modified accrual basis of accounting)
2013 2014 2015 2016
Other Financing Sources (Uses):
Sale of Capital Assets 38,700 17,289 20,954 33,755
General Obligation Notes Issued 0 0 0 0
General Obligation Bonds Issued 0 0 0 0
Premium on General Obligation Bonds 0 0 0 0
Transfers In 1,878,718 2,137,016 2,185,044 2,457,040
Transfers Out (2,056,218) (2,266,206) (2,264,290) (2,508,340)
Other Financing Sources -Capital Leases 0 0 0 0
Total Other Financing Sources (Uses) (138,800) (111,901) (58,292) (17,545)
Net Change in Fund Balance $882,762 $174,042 $386,229 $606,638
Debt Service as a Percentage
of Noncapital Expenditures 3.31% 3.16% 2.95% 4.02%
Source: Finance Director's Office
- S 12 -
City of Napoleon, Ohio
201� 2o1g 2019 2020 2021 2022
50,395 103,355 59,041 861 2,058 39,715
0 0 0 3,500,000 0 0
0 0 0 0 4,040,000 0
0 0 0 0 95,223 0
2,442,394 2,952,732 2,256,321 2,069,206 3,286,569 2,473,961
(2,628,344) (3,127,062) (2,427,701) (2,262,567) (2,450,127) (2,488,961)
0 0 0 0 0 0
(135,555) (70,975) (112,339) 3,307,500 4,973,723 24,715
$121,222 ($874,594) $624,183 $3,071,656 ($941,972) $861,526
3.06% 2.81% 2.39% 2.26% 29.02% 3.75%
- S13 -
City of Napoleon, Ohio
Income Tax Revenues by Source, Governmental Funds
Last Ten Years
Tax year 2013 2014 2015 2016
Income Tax Rate 1.50% 1.50% 1.50% 1.50%
Estimated Personal Income $321,298,252 $340,074,000 $339,299,820 $343,994,115
Total Tax Collected $3,766,944 $4,002,571 $4,233,916 $4,906,698
Income Tax Receipts
Withholding 2,815,263 2,885,428 3,021,851 3,372,317
Percentage 74.74% 72.09% 71.37% 68.73%
Corporate 426,751 561,348 608,345 807,938
Percentage 11.32% 14.02% 14.37% 16.47%
Individuals 524,930 555,795 603,721 726,443
Percentage 13.94% 13.89% 14.26% 14.80%
Source: City Income Tax Department
- S 14 -
City of Napoleon, Ohio
201� 2ols 2019 2020 2021 2022
l.so�io l.so�ia l.so�io l.so�io l.so�io l.so�io
$353,979,920 $355,437,871 $386,721,369 $381,699,363 $377,048,463 $462,282,992
$4,616,746 $4,300,691 $4,516,394 $4,589,475 $5,223,095 $5,486,709
3,162,578 3,242,460 3,337,832 3,579,093 3,826,675 3,957,746
68.50% 75.39°/a 73.90% 77.98% 73.26% 72.13%
727,125 390,875 460,411 331,043 656,574 636,879
15.75% 9.09% 10.19% 7.21% 12.57% 11.61%
727,043 667,357 718,152 679,339 739,846 892,084
15.75% 15.52% 15.91% 14.81% 14.17% 16.26%
- 515 -
City of Napoleon, Ohio
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- S 16 -
City of Napoleon, Ohio
Income Tax Collections
Current Year and Nine Years Ago
Calendar Year 2022
Local
Number Percent of Taxable Percent of
Income Level of Filers Total Income Income
$0- $19,999 1,575 37.24% $10,635,573 5.67%
20,000-49,999 1,267 29.96% 42,788,753 22.81%
50,000- 74,999 603 14.26% 37,116,203 19.79%
75,000-99,999 355 8.39% 30,653,417 16.34%
Over 100,000 429 10.14% 66,366,287 35.39%
Total 4,229 100.00% $187,560,233 100.00%
Calendar Year 2013
Local
Number Percent of Taxable Percent of
Income Level of Filers Total Income Income
$0- $19,999 2,537 51.39% $15,781,810 9.76%
20,000-49,999 1,282 25.97% 42,193,655 26.09%
50,000- 74,999 550 11.14% 33,729,321 20.86%
75,000- 99,999 278 5.63% 23,913,192 14.78%
Over 100,000 290 5.87% 46,110,505 28.51%
Total 4,937 100.00% $161,728,483 100.00%
Source: Finance Director's Office
- 517 -
City of Napoleon, Ohio
Ratio of Outstanding Debt By Type
Last Ten Years
2013 2014 2015
Governmental Activities (1)
General Obligation Bonds Payable $1,105,000 $1,030,000 $950,000
Special Assessment Bonds Payable 144,354 112,554 80,754
Long-Term Notes Payable 0 0 0
Ohio Public Works Commission Loan Payable 49,402 37,051 24,700
Business-type Activities �i)
Ohio Water Development Authority Loans Payable 1,257,105 1,142,870 1,022,324
Ohio Public Works Commission Loans Payable 397,106 368,421 339,736
Ohio Water and Sewer Rotary Commission Loans Payable 307,669 300,832 300,832
Water Pollution Control Loan Fund Loans Payable 6,593,088 6,235,432 5,874,191
Water Supply Revolving Loan Payable 0 0 0
Long-Term Notes Payable 2,500,000 2,500,000 2,500,000
General Obligation Bonds Payable 1,325,000 1,180,000 1,025,000
Special Assessment Bond Payable 56,646 49,446 42,246
Revenue Bonds Payable 10,070,000 9,585,000 9,085,000
Total Primary Government $23,805,370 $22,541,606 $21,244,783
Population �2�
City of Napoleon 8,782 9,000 8,940
Outstanding Debt Per Capita $2,711 $2,505 $2,376
Income �s>
Personal (in thousands) 321,298 340,074 339,300
Percentage of Personal Income 7.41% 6.63% 6.26%
Sources:
(1) City Finance Director's Office
(2) US Bureau of Census,Population Division
(3) US Department of Commerce, Bureau of Economic Analysis
(a) Per Capita Income is only available by County, Total Personal Income is a calculation
- S 18 -
City of Napoleon, Ohio
2016 2017 2018 2019 2020 2021 2022
$870,000 $785,000 $700,000 $615,000 $525,000 $4,375,462 $4,100,701
48,754 26,754 4,554 2,354 0 0 0
0 0 0 0 3,500,000 0 0
12,349 0 0 0 0 0 0
916,078 825,367 811,926 703,383 2,748,926 3,794,512 11,352,360
311,051 282,366 253,681 225,000 225,000 175,000 150,000
300,832 300,832 300,832 263,116 246,499 246,499 246,499
5,509,329 5,140,810 4,768,596 4,392,650 4,012,935 3,629,414 3,242,048
0 9,247,156 15,715,701 15,956,748 15,503,850 14,824,503 14,371,605
3,900,000 3,900,000 2,500,000 2,352,000 2,352,000 0 0
865,000 695,000 520,000 335,000 0 0 0
34,246 26,246 17,446 8,646 0 0 0
8,575,000 8,035,000 7,470,000 7,155,000 7,040,445 8,666,107 8,093,002
$21,342,639 $29,264,531 $33,062,736 $32,008,897 $36,154,655 $35,711,497 $41,556,215
8,851 8,659 8,299 8,249 8,207 8,107 8,794
$2,411 $3,380 $3,984 $3,880 $4,405 $4,405 $4,726
343,994 353,980 355,438 386,721 381,699 377,048 462,283
6.20% 8.27% 9.30% 8.28% 9.47% 9.47% 8.99%
- S 19 -
City of Napoleon, Ohio
Ratios of General Bonded Debt Outstanding
Last Ten Years
Year 2013 2014 2015 2016
Population �i� 8,782 9,000 8,940 8,851
Assessed Value �a� $144,710,680 $140,680,550 $140,849,400 $140,501,870
General Bonded Debt �3�
General Obligation Bonds $2,430,000 $2,210,000 $1,975,000 $1,735,000
Resources Available to Pay Principal �4� $27,767 $9,554 $28,749 $13,650
Net General Bonded Debt $2,402,233 $2,200,446 $1,946,251 $1,721,350
Ratio of Net Bonded Debt
to Assessed Value 1.66% 1.56% 1.38% 1.23%
Net Bonded Debt per Capita $273.54 $244.49 $217.70 $194.48
Source:
(1) U.S. Bureau of Census ofPopulation
(2) Henry County Auditor
(3) Includes all general obligation bonded debt supported by property taxes.
(4) Includes only Debt Service funds available for general obligation bonded debt supported by property taxes.
- 520 -
City of Napoleon, Ohio
201� 2ols 2019 2020 2021 2022
8,659 8,299 8,249 8,207 8,107 8,794
$151,096,730 $150,298,770 $150,765,380 $169,600,090 $172,645,510 $171,106,790
$1,480,000 $1,220,000 $950,000 $525,000 $4,375,462 $4,100,701
$36,757 $34,596 $21,995 $55,235 $9,394 $0
$1,443,243 $1,185,404 $928,005 $469,765 $4,366,068 $4,100,701
0.96% 0.79% 0.62% 0.28% 2.53% 2.40%
$166.68 $142.84 $112.50 $57.24 $538.56 $466.31
- 521 -
City of Napoleon, Ohio
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- 522 -
City of Napoleon, Ohio
Computation of Direct and Overlapping
Debt Attributable to Governmental Activities
Deceinber 31, 2022
Percentage Amount
Applicable to Applicable to
Gross Debt the City of the City of
Jurisdiction Outstanding Napoleon Napoleon
Direct:
City ofNapoleon $4,100,701 100.00% $4,100,701
Overlapping:
Napoleon City School District 26,720,000 35.93% 9,600,496
Liberty Center School District 17,100,000 2.32% 396,720
Four County Career Center 2,095,000 3.80% 79,610
Subtotal 10,076,826
Total $14,177,527
Source: Henry County
Percentages determined by dividing each overlapping subdivisions'assessed valuation within the City
by the subdivisions'total assessed valuation.
- 523 -
City of Napoleon, Ohio
Debt Limitations
Last Ten Years
Collection Year 2013 2014 2015 2016
Total Debt
Net Assessed Valuation $144,710,680 $140,680,550 $140,849,400 $140,501,870
Legal Debt Limitation(%)�i) 10.50% 10.50% 10.50% 10.50%
Legal Debt Limitation($)�i� 15,194,621 14,771,458 14,789,187 14,752,696
City Debt Outstanding�z� 1,105,000 1,030,000 950,000 870,000
Less: Applicable Debt Service Fund Amounts (27,767) (9,554) (28,749) (13,650)
Net Indebtedness Subject to Limitation 1,077,233 1,020,446 921,251 856,350
Overall Legal Debt Margin $14,117,388 $13,751,012 $13,867,936 $13,896,346
Unvoted Debt
Net Assessed Valuation $144,710,680 $140,680,550 $140,849,400 $140,501,870
Legal Debt Limitation(%)(i> 5.50% 5.50% 5.50% 5.50%
Legal Debt Limitation($)��� 7,959,087 7,737,430 7,746,717 7,727,603
City Debt Outstanding�2� 1,105,000 1,030,000 950,000 870,000
Less: Applicable Debt Service Fund Amounts (27,767) (9,554) (28,749) (13,650)
Net Indebtedness Subject to Limitation 1,077,233 1,020,446 921,251 856,350
Overall Legal Debt Margin $6,881,854 $6,716,984 $6,825,466 $6,871,253
(1) Direct Debt Limitation based upon Section 133, The Uniform Bond Act of the Ohio Revised Code.
(2) City Debt Outstanding includes Non Self-Supporting General Obligation Bonds and Notes only.
Enterprise Debt is not considered in the computation of the Legal Debt Margin.
Source: Finance Director's Office
- 524 -
City of Napoleon, Ohio
201� 2ols 2019 2020 2021 2022
$151,096,730 $150,298,770 $150,765,380 $169,600,090 $172,645,510 $171,106,790
10.50% 10.50% 10.50% 10.50% 10.50% 10.50%
15,865,157 15,781,371 15,830,365 17,808,009 18,127,779 17,966,213
785,000 700,000 615,000 525,000 4,285,000 4,015,000
(36,757) (34,596) (21,995) (55,235) (9,394) (11,644)
748,243 665,404 593,005 469,765 4,275,606 4,003,356
$15,ll6,914 $15,ll5,967 $15,237,360 $17,338,244 $13,852,173 $13,962,857
$151,096,730 $150,298,770 $150,765,380 $169,600,090 $172,645,510 $171,106,790
5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
8,310,320 8,266,432 8,292,096 9,328,005 9,495,503 9,410,873
785,000 700,000 615,000 525,000 4,285,000 4,015,000
(36,757) (34,596) (21,995) (55,235) (9,394) (11,644)
748,243 665,404 593,005 469,765 4,275,606 4,003,356
$7,562,077 $7,601,028 $7,699,091 $8,858,240 $5,219,897 $5,407,517
- S25 -
City of Napoleon, Ohio
Pledged Revenue Coverage
Last Ten Years
2013 2014 2015 2016
Sewer System Bonds �i a�
Gross Revenues �2> $3,373,988 $3,412,809 $3,936,723 $4,159,750
Direct Operating Expenses �3> 2,159,341 2,118,671 2,309,699 2,295,638
Net Revenue Available for Debt Service 1,214,647 1,294,138 1,627,024 1,864,112
Annual Debt Service Requirement �4� 650,633 640,676 636,597 636,732
Coverage 1.87 2.02 2.56 2.93
Electric System Bonds �1 e�
Gross Revenues �z> $15,603,439 $15,991,230 $14,965,308 $16,208,908
Direct Operating Expenses �3� 15,220,282 15,555,991 13,960,055 14,997,692
Net Revenue Available for Debt Service 383,157 435,239 1,005,253 1,211,216
Annual Debt Service Requirement (4) 0 0 0 0
Coverage N/A N/A N/A N/A
Electric System Amp-Ohio ��n�
Gross Revenues �s� $15,571,064 $15,961,782 $14,927,117 $16,153,201
Direct Operating Expenses �3> 15,220,282 15,555,991 13,960,055 14,997,692
Net Revenue Available for Debt Service 350,782 405,791 967,062 1,155,509
Annual Debt Service Requirement (4) 0 0 0 0
Coverage N/A N/A N/A N/A
Water System Bonds �i��
Gross Revenues �z> $2,889,431 $3,317,029 $3,335,865 $3,278,782
Direct Operating Expenses �3� 1,856,073 2,123,585 1,884,289 2,212,787
Net Revenue Available for Debt Service 1,033,358 1,193,444 1,451,576 1,065,995
Annual Debt Service Requirement �4� 544,556 529,806 538,471 528,884
Coverage 1.90 2.25 2.70 2.02
(1) TheMortgage Revenue Bonds were issued as follows:
(a) The Sewer Bonds were issued in 1998,in the amount of$3,480,000,in 2010 in the amounts
of$2,050,000, $1,800,000 and$2,535,000, in 2012 in the amount of$913,000 and in
2021 in the amount of$4,070,000.
(b) The Electric Bonds were issued in 1998, in the amount of$3,245,000.
(c) The Water Bonds were issued in 2008, in the amount of$3,505,000,in 2010 in the amounts
of$305,000 and$540,000, in 2012 in the amount of$187,000, in 2020 in the amount of$2,545,000
and 2021 in the amount of$2,360,000.
(2) Gross revenues include operating revenues plus interest income.
(3) Direct operating expenses include operating expenses less depreciation.
(4) Annual debt service requirements include principal and interest on revenue bonds only.
(5) Gross revenues do not include interest income. This is operating revenue only according to
Amp-Ohio debt covenant.
Source: Finance Director's Office - S 26 -
City of Napoleon, Ohio
201� 2ols 2019 2020 2021 2022
$4,102,182 $4,103,091 $4,128,417 $4,210,583 $4,589,284 $4,392,033
2,596,558 2,597,562 2,471,357 3,739,254 4,925,856 1,291,918
1,505,624 1,505,529 1,657,060 471,329 (336,572) 3,100,115
644,217 641,274 372,130 371,7ll 253,318 253,404
2.34 2.35 4.45 1.27 (1.33) 12.23
$15,561,372 $17,626,832 $16,846,017 $16,715,984 $16,628,793 $17,544,271
15,782,123 17,379,408 18,213,457 16,994,153 14,432,560 15,990,373
(220,751) 247,424 (1,367,440) (278,169) 2,196,233 1,553,898
0 0 0 0 0 0
N/A N/A N/A N/A N/A N/A
$15,499,543 $17,539,066 $16,793,537 $16,677,532 $16,599,805 $16,389,791
15,782,123 17,379,408 18,213,457 16,994,153 14,432,560 15,990,373
(282,580) 159,658 (1,419,920) (316,621) 2,167,245 399,418
0 0 0 0 0 0
N/A N/A N/A N/A N/A N/A
$3,441,821 $3,638,507 $3,805,918 $4,107,007 $4,031,016 $4,409,471
2,436,100 2,755,307 2,718,266 2,834,700 2,167,499 2,238,289
1,005,721 883,200 1,087,652 1,272,307 1,863,517 2,171,182
537,699 542,279 541,221 331,328 476,114 469,132
1.87 1.63 2.01 3.84 3.91 4.63
- 527 -
City of Napoleon, Ohio
Demographic and Economic Statistics
Last Ten Years
Calendar Year 2013 2014 2015 2016
Population �i>
City of Napoleon 8,782 9,000 8,940 8,851
Henry County 28,045 28,092 27,937 27,816
Income (2)
Total Personal (in thousands) 321,298 340,074 339,300 343,994
Per Capita 36,586 37,786 37,953 38,865
Unemployment Rate �3)
Federal 6.7% 5.6% 5.0% 4.7%
State 7.1% 5.1% 4.8% 5.0%
Henry County 7.2% 5.5% 5.5% 5.5%
Civilian Work Force Estimates �3�
State 5,758,000 5,726,000 5,694,000 5,687,000
Henry County 15,300 13,700 13,500 13,500
Sources:
(1) US Bureau of Census of Population
(2) Per Capita Income is only available by County, Total Personal Income is a calculation
(3) State Department of Labor Statistics
- 528 -
City of Napoleon, Ohio
2017 2018 2019 2020 2021 2022
8,659 8,299 8,249 8,207 8,107 8,794
27,629 27,185 27,006 26,921 26,836 27,538
353,980 355,438 386,721 381,699 377,048 462,283
40,880 42,829 46,881 46,509 46,509 52,568
4.1% 3.9% 3.5% 3.9% 3.7% 3.5%
4.9% 4.6% 4.1% 5.5% 3.4% 3.6%
5.1% 5.8% 4.6% 5.6% 2.8% 4.9%
5,782,000 5,758,000 5,811,750 5,634,700 5,136,800 5,723,000
13,500 13,100 13,265 12,679 9,921 12,700
- 529 -
City of Napoleon, Ohio
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- 530 -
City of Napoleon, Ohio
Principal Employers
Current Year and Nine Years Ago
2022
Number Percentage
of of Total
Employer Nature of Business Employees Rank Employment
Wal-Mart Stores Retail 490 1 4.87%
JAC Automobile Parts Manufacturer 477 2 4.74%
Campbel Soup Supply Co LLC* Soup Manufacturer 384 3 3.82%
Henry County County Government 367 4 3.65%
Napoleon City School District Education 365 5 3.63%
Henry County Hospital Inc Health Care 268 6 2.66%
Tenneco Automotive (Pullman Company) Automobile Parts Manufacturer 264 7 2.62%
City of Napoleon Local Government 251 8 2.50%
Defiance Stamping Automobile Parts Manufacturer 96 9 0.95%
Automatic Feed Steel Handling Equipment 84 10 0.84%
Total 3,046
Total Employment within the City 10,058
2013
Percentage
Number of of Total
Employer Nature of Business Employees Rank Employment
Napoleon City School District Education 489 1 4.67%
Henry County Auditors Counry Government 400 2 3.82%
Campbel Soup Supply Co LLC Soup Manufacturer 386 3 3.69%
Wal-Mart Stores Retail 331 4 3.16%
Henry County Hospital Inc Health Care 308 5 2.94%
The Lutheran Home Long-term Health Care 259 6 2.47%
Tenneco Automotive (Pullman Company) Automobile Parts Manufacturer 235 7 2.24%
City of Napoleon Local Government 217 8 2.07%
Oldcastle APG Inc Manufacturing 128 9 1.22%
Automatic Feed Company Steel Handling Equipment 82 10 0.78%
Total 2,835
Total Employment within the City 10,472
Sources: City of Napoleon Income Tax Department
(Total Employment#based on W2's received from employers)
- 531 -
City of Napoleon, Ohio
Full Time Equivalent Employees by Function
Last Ten Years
2013 2014 2015 2016
Governmental Activities
General Government
Finance 9.00 9.00 9.00 9.00
Legal/Court 10.00 10.00 9.00 9.00
Administration 10.00 10.00 10.00 10.00
Maintenance 3.00 3.00 3.00 3.00
Security of Persons and Property
Police 21.00 22.00 21.00 23.00
Fire 9.00 9.00 9.00 9.00
Transportation
Street 3.00 3.00 3.00 3.00
Leisure Time Activities
Recreation/Seniors 5.00 5.00 5.00 5.00
Community Environment
Service -Cemetery 1.00 1.00 1.00 1.00
Business-Type Activities
Utilities -Electric 14.00 14.00 14.00 14.00
Water 9.00 9.00 9.00 10.00
Sewer 7.00 7.00 7.00 7.00
Solid Waste 3.00 3.00 2.00 3.00
Total Employees 104.00 105.00 102.00 106.00
Method: 1.00 for each full-time, 0.50 for each part-time and 0.25 for each seasonal employee
Source: Finance Director's Office
- 532 -
City of Napoleon, Ohio
201� 2ols 2019 2020 2021 2022
9.00 9.00 8.00 6.00 6.00 6.00
10.00 10.00 11.50 11.00 9.50 11.50
9.00 11.00 13.00 13.50 13.50 ll.00
3.00 3.00 3.00 3.00 3.00 3.00
20.00 19.00 22.00 22.00 22.00 23.00
10.00 8.00 24.00 24.50 22.00 22.00
3.00 2.00 2.00 2.00 3.00 3.00
5.00 5.00 7.50 4.50 10.50 19.00
1.00 1.00 1.00 2.00 2.00 2.00
14.00 14.00 14.00 12.00 12.00 13.00
11.00 10.00 11.5 0 11.00 11.00 12.00
8.00 8.00 8.00 8.50 8.50 8.50
3.00 2.00 4.00 4.00 3.00 4.00
106.00 102.00 129.50 124.00 126.00 13 8.00
- S33 -
City of Napoleon, Ohio
Operating Indicators by Function
Last Ten Years
2013 2014 2015 2016
Governmental Activities
General Government
Licenses and Permits
Number of Building Permits 99 87 181 139
Number of Commercial Permits 13 17 7 13
Security of Persons and Property
Police
Number of Traffic Citations Issued 1,070 741 741 565
Number of Parking Tickets 16 83 83 59
Number of Law Violations:
Criminal/Juvenile Citations 832 713 713 827
Fire
Number of Fire Calls Answered 246 237 227 170
Number of EMS Runs 1,135 1,147 1,237 1,339
Number of Inspections 97 36 188 107
Transportation
Street
Facilities and Services: Miles of Streets 72 72 72 72
Business-Type Activities
Water
Number of Service Connections 3,663 3,663 3,663 3,663
Daily Average Consumption(gallons) 1.3M 1.3M 13M 13M
Maximum Daily Capacity of Treatment(gallons) 4.SM 4.SM 4.SM 4.SM
Sewer
Number of Service Connections 4,360 3,553 3,553 3,553
Daily Average Sewage Treatment(gallons) 1.8M 1.8M 1.8M 1.8M
Maximum Daily Capacity of Treatment(gallons) 4.SM 4.SM 4.SM 4.SM
Source: Finance Director's Office
- S34 -
City of Napoleon, Ohio
2017 2018 2019 2020 2021 2022
186 171 164 180 192 177
31 60 73 62 54 73
427 456 411 232 388 322
53 28 22 8 62 8
1,054 927 855 712 670 589
167 210 237 296 362 442
1,428 1,370 1,409 1,449 1,574 1,401
270 463 204 87 145 169
72 72 72 72 72 72
3,895 3,895 3,900 3,920 3,960 3,970
13M 13M 1.14M 1.14M 1.13M 1.093M
4.SM 4.SM 4.SM 4.SM 4.SM 4.SM
3,683 3,683 3,678 3,715 3,740 3,754
1.8M 1.8M 2.OM 1.64M 1.77M 1.518M
4.SM 4.SM 4.SM 4.SM 4.SM 4.SM
- 535 -
City of Napoleon, Ohio
Capital Asset Statistics by Function
Last Ten Years
2013 2014 2015 2016
Governmental Activities
General Government
Area(square miles) 7 7 7 7
Security of Persons and Property
Police
Stations 1 1 1 1
Vehicles 7 7 7 7
Fire
Stations 1 1 1 1
Vehicles 11 11 11 11
Transportation
Street
Vehicles 9 9 9 9
Leisure Time Activities
Recreation/Seniors
Land(acres) 225 225 225 225
Parks 9 9 9 9
Swimming Pools 1 1 1 1
Tennis Courts 1 1 1 1
Baseball/Softball Diamonds 7 7 7 7
Golf Courses 1 1 1 1
Business-Type Activities
Utilities
Water
Waterlines (Miles) 63 63 63 63
Number of Purification Plants 2 2 2 2
Number of Hydrants 653 653 653 653
Number of Water Towers 2 2 2 2
Sewer
Sewerlines (Miles) 47 47 47 47
Number of Treatment Plants 1 1 1 1
Storm Water Drainage
Miles of Storm Sewers 37 37 37 37
Source: Finance Director's Office
- 536 -
City of Napoleon, Ohio
2017 2018 2019 2020 2021 2022
7 7 7 7 7 7
1 1 1 1 1 1
8 8 9 9 9 10
1 1 1 1 1 1
11 10 10 10 10 10
9 9 9 9 9 9
225 225 225 225 225 225
9 9 9 9 9 9
1 1 1 1 1 1
1 1 1 1 1 1
7 7 7 7 7 7
1 1 1 1 1 1
63 63 63 63 63 63
2 1 1 1 1 1
658 658 646 646 646 646
2 2 2 2 2 2
47 47 47 47 47 47
1 1 1 1 1 1
37 37 37 37 37 37
- 537 -
City of Napoleon, Ohio
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- 538 -