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HomeMy WebLinkAboutCity of Canton - Public Financial Report • ' " i . _ . � � _ Ri�hard A. Mallor�n II • Audito�, Car�ton, C3h�o , . . , , . . . . __ - _ -- - - . . * - - _---- ---- * * , _� . . � * ���„� �`��� _ ,: _ - _ _ . . . � , - - - - , _- r � � , �� , _ = ,�,� _"- - ° .� � � �t.i. �-� � ' i r� .�.... „1; ,��. I L.t l�' � "� �'r _ �� �+ - � — _ � — �.3�,, .+�0 i�— , � ` � .:. : �` � ��- ., � � �� � _ � � _ �•e� • d � - � ur � � — ,� l��+ — � �" ° `� 1i• ' ; . :,,,,,g, -,_- +.. �'� - �� =�"' -�� � � � �� �.-- � �.� � '�'� � ,E,�r +,��.�u���� e.,e ���. �IALL�FfAME � ' ;�. :� �� � For �he Year Ended Decernber 31 , 2�2�2 CITY OF CANTON, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2022 RICHARD A. MALLONN II CITY AUDITOR PREPARED BY THE CITY AUDITOR'S OFFICE CITY OF CANTON STARK COUNTY,OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,2022 TABLE OF CONTENTS Title Page Tableof Contents............................................................................................................................... i I. INTRODUCTORY SECTION Letterof Transmittal.......................................................................................................................... v Certificate of Achievement for Excellence in Financial Reporting................................................... xvii CityOfficials..................................................................................................................................... xviii OrganizationalChart......................................................................................................................... xiv IL FINANCIAL SECTION IndependentAuditor's Report............................................................................................................ 1 Management's Discussion and Analysis............................................................................................ 5 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position .................................................................................................... 21 Statement of Activities......................................................................................................... 22 Fund Financial Statements: Balance Sheet-Governmental Funds.................................................................................. 24 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities............................................................................................... 26 Statement of Revenues,Expenditures and Changes in Fund Balances-Governmental Funds........................................................................................ 28 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities......................... 30 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual(Non-GAAP Budgetary Basis): GeneralFund.................................................................................................................. 31 Community and Economic Development Fund............................................................. 33 American Rescue Plan Act Fund.................................................................................... 34 Statement of Net Position-Proprietary Funds..................................................................... 36 Statement of Revenues,Expenses and Changes in Net Position-Proprietary Funds....................................................................................... 38 Statement of Cash Flows-Proprietary Funds...................................................................... 40 Statement of Fiduciary Net Position-Fiduciary Funds....................................................... 44 Statement of Changes in Fiduciary Net Posirion-Fiduciary Fund...................................... 45 Notes to the Basic Financial Statements...................................................................................... 47 Required Supplementary Information: Schedule of the City's Proportionate Share of the Net Pension Liability/Net Pension Asset: Ohio Public Employees Retirement System(OPERS)......................................................... 132 Ohio Police and Fire Pension Fund(OP&F) ....................................................................... 134 Schedule of City Pension Contributions: Ohio Public Employees Retirement System(OPERS) ........................................................ 136 Ohio Police and Fire Pension Fund(OP&F) ....................................................................... 138 Schedule of the City's Proportionate Share of the Net OPEB Liability: Ohio Public Employees Retirement System(OPERS)......................................................... 140 Ohio Police and Fire Pension Fund(OP&F) ....................................................................... 142 Schedule of City OPEB Contributions: Ohio Public Employees Retirement System(OPERS) ........................................................ 144 Ohio Police and Fire Pension Fund(OP&F) ....................................................................... 146 Notes to Required Supplementary Information........................................................................... 148 -i- CITY OF CANTON STARK COUNTY,OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,2022 TABLE OF CONTENTS(CONTINUED) Combining Statements and Individual Fund Schedules: Fund Descriptions-Governmental Funds................................................................................... 154 Individual Fund Schedules of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual(Non-GAAP Budgetary Basis)-Majar Governmental Funds: GeneralFund........................................................................................................................ 158 Community and Economic Development Fund................................................................... 164 American Rescue Plan Act Fund......................................................................................... 166 CapitalProjects Fund........................................................................................................... 167 Motor Vehicle Purchase Fund.............................................................................................. 169 Combining Balance Sheet-Nonmajor Governmental Funds..................................................... 171 Combining Statement of Revenues,Expenditures and Changes in Fund Balances-Nonmajor Governmental Funds.................................................................... 172 Combining Balance Sheet-Nonmajor Special Revenue Funds.................................................. 174 Combining Statement of Revenues,Expenditures and Changes in Fund Balances-Nonmajor Special Revenue Funds................................................................. 182 Individual Fund Schedules of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual(Non-GAAP Budgetary Basis)-Nonmajor Special Revenue Funds: Street Construction,Maintenance,and Repair Fund............................................................ 188 StateHighway Fund............................................................................................................. 189 MunicipalRoad Fund........................................................................................................... 190 Cornerstone Parking Deck Fund.......................................................................................... 191 Mills Industrial Park TIF Fund............................................................................................. 192 Gervasi 1700,LLC TIF Fund............................................................................................... 193 UrbanTIF Fund.................................................................................................................... 194 Lesh Rd/30t''TIF Fund........................................................................................................ 195 CrimeLab Fund................................................................................................................... 196 CourtComputer Fund.......................................................................................................... 197 Court Capital Improvement Special Project Fund................................................................ 198 LegalResearch Fund............................................................................................................ 199 CourtGPS Cost Fund........................................................................................................... 200 Ignition Interlock/Alcohol Monitoring Fund........................................................................ 201 Law Department Dispute Resolution Fund.......................................................................... 202 SARTA Area Improvement Fund........................................................................................ 203 ParkDepartment Fund......................................................................................................... 204 YouthDevelopment Fund.................................................................................................... 205 FederalForfeiture Fund........................................................................................................ 206 ProbationAward Fund......................................................................................................... 207 Enforcement and Education Fund........................................................................................ 208 Indigent Driver Alcohol Treatment Fund............................................................................. 209 Law Enforcement Trust Fund.............................................................................................. 210 Municipal Probation Services Fund..................................................................................... 211 Misdemeanor Community Sanction Grant Fund.................................................................. 212 PrisonerHousing Fund......................................................................................................... 213 Local Law Enforcement Block Grant Fund......................................................................... 214 Supplementary Police Forces Fund...................................................................................... 215 D.A.R.E.Program Fund....................................................................................................... 216 Prob Improv and Incent Grant Fund..................................................................................... 217 Safe Neighborhood Heroes Grant Fund............................................................................... 218 Police Grants and Donations Fund....................................................................................... 219 Byrne Memorial Recovery Act Fund................................................................................... 220 Use of Force Software Upgrade Grant Fund........................................................................ 221 Police EMS Training and Equipment Grant Fund............................................................... 222 2020 Cops Hiring Grant Fund.............................................................................................. 223 2021 Bulletproof Vest Partnership Fund.............................................................................. 224 2014 Byrne Grant Fund........................................................................................................ 225 2021 Cops Hiring Grant Fund.............................................................................................. 226 Fire Grants and Donations Fund.......................................................................................... 227 2021 Department HS Asst to Firefighter Fund..................................................................... 228 EMS Training and Equipment Grant Fund.......................................................................... 229 -ii- CITY OF CANTON STARK COUNTY,OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,2022 TABLE OF CONTENTS(CONTINUED) Combining Statements and Individual Fund Schedules(continued): Fire FEMA Safer Grant 2017 Fund...................................................................................... 230 2019 Asst to Firefighters Grant Fund................................................................................... 231 Vacant/Foreclosed Registry Fund........................................................................................ 232 Canton Merchandising Fund................................................................................................ 233 Hall of Fame Village Tourism Development District Fund................................................. 234 Neighborhood Development Fund....................................................................................... 235 PretrialAward Fund............................................................................................................. 236 BuildingEscrow Fund.......................................................................................................... 237 Vacant/Foreclosure Depository Fund................................................................................... 238 EmployeeRecognition Fund................................................................................................ 239 CityHall Plaza Fund............................................................................................................ 240 RecycleOhio Grant Fund..................................................................................................... 241 Guardrail/Attenuator Replacement Fund............................................................................. 242 Southeast Community Center Fund..................................................................................... 243 Centennial Plaza Maintenance Fund.................................................................................... 244 Thurman Munson Memorial Stadium Donation Fund......................................................... 245 RecoveryCourt ATP Fund................................................................................................... 246 US Dept Justice/Bureau Asst Fund...................................................................................... 247 Project Safe Neighborhood Grant Fund............................................................................... 248 Justice Reinvest Grant Probation Fund................................................................................ 249 Court Technology Grant Fund............................................................................................. 250 Specialized Docket Grant Fund............................................................................................ 251 OCJS 2020 Project Safe Neighborhood Fund...................................................................... 252 OCJS 2021 Project Safe Neighborhood Fund...................................................................... 253 Downtown Canton TDD Fund............................................................................................. 254 Comprehensive Plan Implementation Fund......................................................................... 255 ARPA 2022 Wellness&Recruit FD Fund.......................................................................... 256 OneOhio Opioid Fund......................................................................................................... 257 Centennial Plaza TDD Fund................................................................................................ 258 IncomeTax Fund................................................................................................................. 259 Combining Balance Sheet-Nonmajor Debt Service Funds........................................................ 260 Combining Statement of Revenues,Expenditures and Changes in Fund Balances-Nonmajor Debt Service Funds....................................................................... 261 Individual Fund Schedule of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual(Non-GAAP Budgetary Basis)-Nonmajor Debt Service Fund: General Obligation Bond Retirement Fund.......................................................................... 262 Combining Balance Sheet-Nonmajor Capital Projects Funds................................................... 264 Combining Statement of Revenues,Expenditures and Changes in Fund Balances-Nonmajar Capital Projects Funds.................................................................. 266 Individual Fund Schedules of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual(Non-GAAP Budgetary Basis)-Nonmajor Capital Projects Funds: 2015 Construction/Reconstruction Note Fund..................................................................... 269 2006 City Infrastructure Bond Fund.................................................................................... 270 2006 Recreational Bond Fund.............................................................................................. 271 2006 Construction/Reconstruction Bond Fund.................................................................... 272 2006 Judges Facilities/City Hall Renovation Bond Fund.................................................... 273 41s`St.NW Roadway Reconstruction Project Fund............................................................. 274 2022 Infrastructure Bond Fund............................................................................................ 275 l lth St NW Improvement Project Fund................................................................................ 276 Tuscarawas Street West Corridor Safety Project Fund........................................................ 277 3�`�Street SE Bridge Project GP 1167 Fund......................................................................... 278 36t"St NW Storm Rdwy Wtr& Swr Fund........................................................................... 279 3rd St SE Resurfacing Project Fund...................................................................................... 280 13t"St NW Roadway Reconstruction Fund......................................................................... 281 Mahoning Rd Corridor Project Fund.................................................................................... 282 30th Street NW Resurfacing Project Fund............................................................................ 283 Steese Area 39th St NW Sewer Project Fund....................................................................... 284 Colonial Blvd Reconstruction Project Fund......................................................................... 285 -iii- CITY OF CANTON STARK COUNTY,OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,2022 TABLE OF CONTENTS(CONTINUED) Combining Statements and Individual Fund Schedules(continued): Fund Descriptions—Major Enterprise Funds.............................................................................. 286 Individual Fund Schedules of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual(Non-GAAP Budgetary Basis)-Major Enterprise Funds: WaterOperating Fund.......................................................................................................... 287 SewerOperating Fund......................................................................................................... 288 RefuseOperating Fund........................................................................................................ 289 Fund Descriptions—Nonmajor Enterprise Fund......................................................................... 290 Individual Fund Schedules of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual(Non-GAAP Budgetary Basis)—Non Major Enterprise Fund: BuildingCode Fund............................................................................................................. 291 Fund Descriptions-Internal Service Funds................................................................................ 292 Combining Statement of Net Position-Internal Service Funds.................................................. 293 Combining Statement of Revenues,Expenses and Changes in Net Position-Internal Service Funds....................................................................................... 294 Combining Statement of Cash Flows-Internal Service Funds................................................... 295 Individual Fund Schedules of Revenues,Expenditures and Changes in Fund Balance- Budget and Actual(Non-GAAP Budgetary Basis)-Internal Service Funds: Workers' Compensation Retrospective Fund....................................................................... 296 Health Insurance Fund......................................................................................................... 297 Compensated Absences Claim Fund.................................................................................... 298 Vehicle Self Insurance Fund................................................................................................ 299 Motor Vehicles Department Fund........................................................................................ 300 Fund Descriptions-Fiduciary Funds.......................................................................................... 301 Combining Statement of Fiduciary Net Position-Custodial Funds........................................... 302 Combining Statement of Changes in Fiduciary Net Position-Custodial Funds......................... 304 III. STATISTICAL SECTION Table of Contents- Statistical Section........................................................................................ S Financial Trends: Net Position by Component-Last Ten Years...................................................................... S 1 Changes in Net Position-Last Ten Years............................................................................ S 3 Fund Balances,Governmental Funds-Last Ten Years....................................................... S 7 Changes in Fund Balances,Governmental Funds-Last Ten Years.................................... S 9 Revenue Capacity: Income Tax Revenue Base and Collections-Last Ten Years.............................................. S ll Income Tax Filers by Income Level -Tax Years 2022 and 2013 ........................................ S 12 Debt Capacity: Ratio of Outstanding Debt by Type-Last Ten Years.......................................................... S 13 Ratio of General Bonded Debt Outstanding-Last Ten Years............................................. S 15 Direct and Overlapping Governmental Activities Debt as of December 31,2022 .............. S 17 Legal Debt Margin Information-Last Ten Years................................................................ S 19 Computation of Legal Debt Margin as of December 31,2022............................................ S 21 Pledged Revenue Coverage-Water-Last Ten Years......................................................... S 22 Pledged Revenue Coverage- Sewer-Last Ten Years......................................................... S 23 Demographic and Economic Information: Demographic and Economic Statistics-Last Ten Years..................................................... S 24 Principal Employers-Current Year and Nine Years Ago................................................... S 25 Operating Information: Full-Time Equivalent City Government Employees by Function/Program-Last Ten Years............................................................................. S 27 Capital Assets Statistics by Function/Program-Last Ten Years......................................... S 29 Operating Indicators by Function/Program-Last Ten Years.............................................. S 31 -iv- - � T1'J'''l T - •� � . - �>, .`,�. �~' � � '�,w � � r . � i� ,,. . ,\ �� � `` ;� � � ` . `� ,, • . ti 1 � �.� `-� p ,� .,- ,.� �r, � � � / �, �~ � 4 • a.t.,. � -. . " r --- -,,:' ` � � • � � - ��_� � . � � �, ' r � � i r � -� + �� � . `� � + • - +.r � ' �� �r�� ��` � � �� `� � , �' � �r �� '��—'f• - - . .I R • ' �i T }r � ` � , f ` � � � '�'1 fty � �� I` � i �. ., • _ �, • � �, t � ,' �, �� - f�. � �a ' � Z � � � , � - ti �` , , , �' t , . • � ,' �r ► • ; � , ,� r + � r 'l,^! � �' y � ' ��«, '~� �,�, f �,+l�� ' � - � � '� ' ��ti`+� ' f � `� �, ,�. .., - ,.� I +�r �,� -�., �'�► ,�`r'' .�. �� ,� ; � � -� ".�,�►~ ' �` � � � �` H� ;: ,-�����'*.'}.��,�*�'�! ��,r�'� � ��; ,� � � �{ .�„a,'• � r ``= - )` •'" ` �,/ �.'� ; -- .t • # •�� � '� � �!.� f � , .: . ! ��� ' t^� �;�„-.�..,7��re _�a+ ,�'�.� I� � l . � � , ; �.s-��,;,�z � �� .� �. � �:.- ti �� - �r� � - ' r-�� � �" ---�r�x " . • 'r t .r;,. ����il' j.�' r� '.�,. �T l +} � "`` -�r'� . . f/ '.�� ,�.�� a�.��.+�j - � � ' �. , �! C �" � � ' �`� �'= � #� �- __ . r I I - �` -,�.'�-�-;� ; � ' _...�� ;�* , . _ y Y. S � y •� � � �I � � � 4�I� � �, ' , �� � . , � 1 _� ' i + � • i �' ��s t� _ ' � , . '4'► ' .. _ ' .�, _ � -� .�-- f �.y�i `� — . , ._ 1 � . - r.. �r►� ,�_..,,0, � �� `� . � [ v = . . i —�__ — - iy � - �i _ � '.i " � �, `- 1. �a ' j k .... j J RICHARD A. MALLONN II CANTOI� CITY AUDITOR City Hall, Canton, Ohio 44702 Phone: (330) 489-3226 June 21,2023 To Council Members and Cirizens of the City of Canton: The Annual Comprehensive Financial Report (Annual Report) of the City of Canton as of December 31, 2022 is hereby submitted. This letter and the following report represent the City's continuing commitment to excellence in financial reporting. The purpose of this letter is to acquaint the reader with the Annual Report. Responsibility for both the accuracy of the data, the completeness and fairness of the presentation, including all disclosures,rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the City's financial position and results of operations. All disclosures necessary to enable the reader to gain an understanding of the City's financial acrivities have been included. The financial records,books of accounts and transactions of the City of Canton,Ohio, for the year ending December 31, 2022, have been audited by the certified public accounting firm of Julian & Grube, Inc. As stated in the auditor's report, the audit was conducted in accordance with Generally Accepted Government Auditing Standards and included a financial compliance evaluation, as well as a review of the internal accounting controls. The Auditor's opinion has been included in the report. Accounting principles generally accepted in the United States of America (GAAP) requires that management provide a narrative introduction,overview, and analysis to accompany the basic financial statements in the form of a Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found on page 5 of this report. City Organization and Background The City is located in and is the County Seat of Stark County in northeastern Ohio, approximately 58 miles southeast of Cleveland,23 miles south of Akron,and 94 miles west of Pittsburgh,Pennsylvania. It was incorporated as a village in 1822,and became a city in 1838. The City's 2022 population of 69,671 placed it as the largest city in the County and the eighth largest in the State. The Ciry operates under and is governed by the mayor-council form of government. The City operates as a Statutory Municipal Corporation as defined by the Ohio Revised Code. - v - The City's legislative authority is vested in a twelve-member Council of whom three are elected at-large and nine are elected from their respective ward, for a term of two years. The presiding officer is the President of Council, who is elected at-large by the voters for a two-year term. The President of Council is called upon to vote on legislation in order to break a tie vote. The Council affixes compensation of City officials and employees, and enacts ordinances and resolutions relating to City services,tax levies, appropriating and borrowing money, licensing and regulating business and trades, and other municipal purposes. The Council affirms, by resolution, the individuals appointed by the Mayor to serve on the various boards and commissions for the City. The City's chief executive and administrative officer is the Mayor, who is elected by the voters specifically to that office for a four- year term. The other elected officials are the City Auditor,the City Treasurer and the Law Director, each elected to a four-year term. The Mayor appoints the directors of City departments other than the Income Tax Department. The majar officials appointed by the Mayor are the, Directors of Public Service and Public Safety,Director of Economic Development, Planning Director, the Fire Chief, the Police Chief and the City Engineer. The Mayor also appoints members to a number of boards and commissions, and appoints and removes, in accordance with civil service requirements, all appointed officers and employees, except Council, Auditor, Treasurer, and Law Director and their respective officers and employees. The City Treasurer appoints the Director of Income Tax who serves at his pleasure. The Mayor may veto any legislation passed by Council. A veto may be overridden by a two-thirds vote of all members of Council. City Services General Government Functions: The City provides police protection, firefighting and prevention, EMS services, street maintenance and repairs,parks and recreation. Funding for these operations is derived primarily from taxes in addition to small amounts of revenue generated from user fees. These operarions could not be sustained without a steady flow of tax revenue. Proprietary Operations: The City operates Water, Sewer, Refuse Departments and Building Inspections. The revenue generated from Water, Sewer and Building Departments were sufficient to meet all expenses in 2022. Reporting Entity The Ciry has reviewed its reporting entity definition to ensure conformance with the Governmental Accounting Standards Board(GASB) Statement No. 14"The Financial Reportin_g EntitX", as amended by GASB Statement No. 39, "Determinin,g Whether Certain Organizations are Component Units", and GASB Statement No. 61, "The Financial Reportin�ty: Omnibus—an Amendment of GASB Statements No. 14 and 34". In defining the City for financial reporting purposes, management has identified all agencies, departments and organizations making up the City of Canton the primary government and its potenrial component units. The City presents the Canton Community Improvement Corporation(CCIC)and the Board of Health as discretely presented component units. Neither the Canton City School District, Plain Local School District, Osnaburg School District, nor Canton Local School District has been included in the accompanying financial statements. These districts serve the citizens of Canton;however,the boards are not appointed by the City,nor are they fiscally dependent on the City. The City is associated with the Stark Area Regional Transit Authority, the Stark Council of Governments and the Stark County Regional Planning Commission as jointly governed organizations. Canton Tomorrow, Inc. and the Downtown Canton Special Improvement District are disclosed as joint ventures. Financial Information Accounting Policies and Budgetary Control The budgetary process is prescribed by provisions of the Ohio Revised Code and entails the preparation of budgetary documents within an established timetables. The major documents prepared are the alternative Tax Budget, the Certificate of Estimated Resources and the Appropriations Ordinance: all are prepared on the budgetary - Vl - basis of accounting. The Certificate of Estimated Resources and the Appropriations Ordinance are subject to amendment throughout the year with the legal restricrion that appropriations cannot exceed esrimated resources, as certified. All funds, other than the custodial funds, are legally required to be budgeted and appropriated. The legal level of budgetary control is at the account level split between salary and non-salary line items within each department within each fund for most funds with a only a few budgeted to the fund level. Any budgetary modifications at this level or above may only be made by resolution of the City Council. Budgetary control at this level provides some flexibility in moving appropriations within their account groups to meet expenses. The City's fully automated financial system also maintains budgetary control through its purchase order/encumbrance feature. The purchase order,required before making purchases, creates the encumbrance against the current budget. Request for purchase orders,which would result in an overrun of budget, are not honored until additional appropriations are made available through Council ordinance. This procedure is followed when money is available to allow an increase in appropriations. If no money is available,the requisirion is canceled. The City Auditor monitors all expenditures for accuracy, appropriateness and compliance. The City Auditor monitors expenditures to encumbrances to assure that each obligation incurred was entered into after the appropriate purchase order was issued. The City Auditor will exercise his discretion to issue "then and now certificates" for obligations incurred prior to obtaining a purchase order. This certificate is authorized by the Ohio Revised Code for obligations that do not exceed three thousand dollars. This certificate simply stated means: "then" meaning at the time the obligation was made and "now" meaning as of the date of the certificate there were sufficient appropriations free from prior obligations necessary to meet this obligation in question. The City Auditor requires an ordinance from Council authorizing a"Moral Obligation", for obligations incurred prior to obtaining a purchase order that exceeds this authoriry. The City Auditor continually monitors the encumbrances and expenditures against the budget appropriations and against the County Auditor's Cerrificate of Estimated Resources. Using the budget prepared by the City the preceding July and including the carry over cash balances less carry over encumbrances at year end, the County Auditor arrives at and issues the Certificate of Estimated Resources for the City. The City Auditor submits amendments to the Certificate of Estimated Resources to the County Auditor as deemed appropriate throughout the year. Ohio Law prohibits total fund appropriations from exceeding the amounts by fund on the County Auditor's Certificate. Internal Accounting and Reporting Control As part of its continuing commitment to excellence in financial reporting, the City utilizes a computerized financial accounting and reporting system. Enhancements to present internal accounting controls and procedures are conrinually evaluated by the City Auditor. The City Auditor oversees the appropriateness of internal control, develops procedures to enhance internal control and consults with outside auditors to insure the City remains at a sound financiallevel of operation. The City has built internal accounting controls into its financial accounting, budgeting and reporting system to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss resulting from unauthorized use or disposition; and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The internal accounting controls built into the City's system were developed using the concept of reasonable assurance. This concept recognizes the cost of a control should not exceed the benefits likely to be derived from its implementation, and the evaluation of costs and benefits should require estimates and judgments by management. We believe the Ciry's internal accounting controls adequately safeguard the City's assets and provide reasonable assurance of proper recording and reporting of financial transacrions. Local Economy Twenty-Six commercial banks (branches), savings and loan associations and credit unions are located in the Ciry. One daily newspaper serves the City. The City is within the broadcast area of twenty television stations and one hundred sixteen AM and FM radio stations. Spectrum,Direct TV and Dish provide TV services. - Vll - The City is home to a number of steel industrial manufacturers and suppliers. The City has benefited from the consistent financial success of the Timken Company. Although a small porrion of its office operations has been moved to a location outside the city, the City remains oprimisric of continued posirive impact from The Timken Company and TimkenSteel resulring from the split that occurred from the Timken Company in late 2014. The City continues to benefit from the diversity of its business base including: MK Morse Company, Fresh Mark Incorporated, Republic Engineered Products, Aultman, Cleveland Clinic Mercy Hospitals and the startup of operations at the newly built Amazon Fulfillment Center is essential in order to create a climate for financial stability. Malone University, a private four-year college, and Aultman College of Nursing are located in the City. University of Mount Union and Walsh University,private four-year schools, Stark State College of Technology, a public two- year school, and a branch of Kent State University, Ashland University, Brown Mackie College and Ross College also are located in the County. Within commuting distance are several public and private two-year and four-year colleges and universities, including Kent State University in Kent and a branch of Kent State Universiry in Tuscarawas County, Cleveland State University, Cuyahoga Community College, John Carroll University, Baldwin- Wallace College and Case Western Reserve University in the Cleveland metropolitan area, the University of Akron in Akron, Herzog University Akron, the College of Wooster in Wooster, Hiram College in Hiram, Youngstown State University in Youngstown, Allegheny Wesleyan College, Lake College and Lakeland Community College in Lake County and Franciscan University an Eastern Gateway Community College in Steubenville. The City is served by two acute care hospitals located in the City: Aultman Hospital (1,032 beds) and Mercy Medical Center(476 beds)which became Cleveland Clinic Mercy Hospital, and two additional acute care hospitals located in the County: In 2018 Alliance Community Hospital became Aultman Alliance Community Hospital (204 beds including 78 nursing home/transition-care beds for long-term care). Massillon Psychiatric Center (Heartland Behavioral Healthcare Hospital), a 156-bed public adult psychiatric hospital operated by the State, is also located in the Counry. In 2010, Aultman Hospital completed a three year $80 million dollar expansion project, the largest in its history. The project included a new four-story 380,000 square foot addition that houses a new Aultman Heart Program,Emergency/Trauma Program,Women's Program(including Labor&Delivery)and the Neonatal Intensive Care Unit. Aultman also operates Aultman College which is located within the campus of the Hospital. A new building housing(Aultman Center for Education)was constructed in 2012 and is utilized for the College of Nursing and Health Sciences. Aultman in support of the City's Comprehensive Plan, has been working collaboratively with the City of Canton, Community Building Partnership and Stark Community Foundation to advance the goals of transforming its campus and revitalizing the neighborhood. During 2021, Aultman broke ground on a $28 million Timken Family Cancer Center, a 58,270 square foot faciliry that was completed and opened in the summer of 2022. This facility brings cancer treatment services under one roo£ In late 2021, Aultman became the first hospital in Stark County to offer the Paxman Scalp Cooling System—also known as "cold cap"—to help reduce hair loss for parients undergoing chemotherapy treatment. In 2009, Mercy Medical Center unveiled its new state of the art 24- unit Mercy Intensive Care Unit. The $20.5-million-dollar project was started in 2007 and also includes an expansion of the surgery center parking garage and relocation of the hospital's helipad to the roof of the new structure. In 2013, Mercy began a $14.5 million renovation-expansion in the emergency department increasing the beds from 33 to 48 which opened late 2014. In 2022 Cleveland Clinic Mercy partnered with Hall of Fame Resort and Entertainment Company, the only resort, entertainment and media company centered around the power of professional football, signed a multi-year agreement to make it the official healthcare provider of the Hall of Fame Village Sports Complex and Tom Benson Hall of Fame Stadium to provide medical services to program participants at the Hall of Fame Village year-round. Both Aultman and Mercy continues to add valuable medical resources such as state of the art equipment/procedures to its hospital campuses. Also,both Aultman Hospital and Mercy Medical Center continue to play a pivotal role in the financial stability of the City of Canton and come in as two of our top employers. The Canton Park System (Park System) maintains 62 parks and covers approximately 825 acres. In addition, the City constructed and owns the 5,700-seat Thurman Munson Memorial Stadium with $5 million dollar renovations completed in 2022. In 2013,the citizens of Canton voted on a park levy which at that time generated approximately $2.4 million dollars annually to assist with the maintenance and capital investment into the City's 62 parks. During 2022 the levy generated approximately$3.8 million. The renewal levy was voted on and passed by the voters of the City and included new language to combine both the Canton Parks with the Canton Joint Recreation District. The - vlll - merger process of these two entities was finalized in April 2018. In 2020, the Canton Park System assumed operation of the Peel Coleman South East Community Center. The Park System continues to add valuable upgrades to its park lands to enhance the usefulness and functionality of its Park System. The Park System renewal levy was passed in May 2021. The City's cultural assets include the Canton Art Institute, the Symphony Orchestra Associarion, the Canton Civic Opera Associarion and the Players Guild (through August 2022), all of which are housed in the Cultural Center (Center) for the Arts and host a variety of exhibits, musical and dramatic performances and other cultural events each year. The Center,a gift of the Timken Foundation,is a building complex located on 8-1/2 acres in the center of the City, which cost $13,000,000 to build in 1971. Adjacent to the center is the City-owned auditorium, an air- conditioned arena-rype facility with a seating capacity of 6,000. The Cultural Center and the auditarium accommodate conventions. The City's greater metropolitan area has approximately 36 hotels, motels and bed and breakfasts with over 3,000 rooms. The Canton Palace Theatre is both the literal and figurative cornerstone of the Downtown Canton Arts District. Harry Harper Ink,Canton native and inventor of the patent medicine,Tonsiline,gave the one million dollars to build the Theatre in 1926. Designed by the noted theatre architect, John Eberson, The Palace is considered an atmospheric theatre, meaning as you sit in the auditorium, you feel as if you are lounging between two Spanish castles,under a Mediterranean blue sky,complete with stars, and floating clouds. The Theatre is home to its original Kilgen Theatre Pipe Organ. This 3 manual, 11 rank instrument is the last remaining Kilgen Theatre Organ still playing in its original home. The famed organist Banks Kennedy opened the theatre November 22, 1926, to a sold out crowd,with the first feature silent film,Tin Hats. In 2013,the Palace completed a capital project totaling$1.3 million including new plumbing,roof,windows, service doors, ADA compliant hearing system, live event sound system, and Digital Cinema Projection. The final state of the renovarion was completed in 2015 by restoring the current carpet with an original replica. A vital multi-purpose entertainment facility, its marquee burns brightly sixty feet above Market Avenue,welcoming you to enter its grand foyer and become a part of Canton's nostalgic past. Hosting over 300 events a year, with an attendance of over 100,000 guests, the Palace also strives to be an important part of Canton's future as it typically hosts a free movie night during Canton's First Friday family entertainment events each month. The City's downtown is home to the National First Ladies Library housed in the former home of one time first lady Ida Saxton McKinley. The library presents a history of all the United States first ladies. In 2002,the Library added a $5.5 million education and research center in the former National City Bank building located nearby the Saxton House. The renovations to the 110-year-old building were paid for through private donations and federal grants. The six story research center houses a 91-seat theater, meering and exhibit rooms,research and reference materials and office space for the library personneL In 2011 the Education and Research Center was donated to the National Park Service and then was made a part of the First Ladies National Historic Site. The National First Ladies' Library remains as the managing/operating parmer of the site for the National Park Service. The First Ladies Park and the gated parking lot continue to be owned by the National First Ladies' Library. Also located in the City's downtown area is the main branch of the Stark County District Library. The library is a 2009 winner of the prestigious National Medal for library service. The library's main branch,9 satellite branches, 6 mobile libraries which are the largest in the state, and 24/7 digital branch holdings number more than 1.8 million items. Base on the concept started by Dolly Parton, due to her father's inability to read, First Lady Dewine, in 2019 started Ohio Governor's Imagination Library to help put books in the hands of children by matching funds to help offset the cost of providing this program. Stark Counry Library participates in this program. The library offers full-service cards and ecards which allows individual to access over 1 million items and more than 500,000 electronic items such as eBooks, movies, shows, movies and more. The library offers access to over 831,500 items. The library also offers corporate /organizarion cards which can be used by In addirion, the Library provides programs for attendees and provides computer sessions on publicly available computers found in each branch. The library today reimagines itself as `The Smart Store' where everything is free. It has emerged as a national thought- leader with innovations such as it's no overdue fines policy, the BikeSmart bike sharing network, passport services and Smart School Partnership. It is one of the nine largest library systems in Ohio and serves 12 local school districts. - lX - In 2022, the library revealed its ReImagine plan which is a plan to live out the mission and vision in Stark Counry, crearing inviring spaces that inspire and empower all people to pursue creativity and lifelong learning. It is a multi- year plan to renovate its buildings, upgrading its technology, and crearing more flexible spaces for a wide range of use. The Library worked with consultants from Kent State University and Cleveland Urban Design Collaboration to develop a long-term master plan. The plan consists of building a new 70,000 square foot Main Library and a 15,000 square foot Operations Center on the Main Library campus. Expected ground breaking is schedule to begin in 2023. The City is the home of the National Professional Football Hall of Fame,which attracts more than 200,000 visitors annually. In December 2010, the Hall of Fame's Board of Trustees announced plans for a major expansion and renovation to the museum. The project, called Future 50 Project, was the largest in the Hall of Fame's history, costing $27 million and taking almost two years to complete. The museum building its self was expanded from 83,000 square feet to 118,000 square feet. The largest piece of the expansion was used for a Pro Football Research and Preservation Center. Also 38,000 square feet of existing gallery was renovated, which included a new lobby and visitor orientation theater. A new museum-quality environmental control system was installed to better ensure the safety of the museum's artifacts. The grounds surrounding the Hall of Fame were improved to provide space for special events, rental opportunities and additional parking. The enshrinement ceremony is the main event of the annual week long celebrations and the Hall of Fame completed the facility improvements in time to celebrate the museum's SOt� anniversary and in time for the Class of 2013's induction ceremonies held on August 3, 2013. Also, the preseason game held that week is the kick-off to the start of the upcoming football season. In 2015,the Canton City School District,the City of Canton and the Pro Football Hall of Fame began discussions on the improvement of the district campus which includes McKinley High School, the C.T. Branin Natatorium and Fawcett Stadium for the expansion and improvement of the stadium and surrounding areas. This project has evolved into a potential mulri-phase construcrion and expansion of the Pro Football Hall of Fame campus at an estimated cumulative value of $400 million will include retail shopping and dining facilities. Also, a potential convenrion and events center will occupy these grounds. Along with an indoor waterpark and an amusement park. As of the submission of this report,the City Canton pledged and financed a bond anricipation note of$5 million and the state has committed$10 million in their capital budget. The Hall of Fame has received and the City Schools has accepted a$10 million donation from Tom Benson for the renaming of the Fawcett Stadium. The $25 million cited above was part of the phase 1,a$40 million renovation to the stadium with all phases of renovations being complete in July 2017. Additional private capital will be raised to expedite the projects expected to evolve within the Hall of Fame Village as listed within the master plan. The Hall of Fame Village LLC combined with a publicly traded, special—purpose Acquisition Company to help fund the expansion projects by trading common stock and warrants starting July 2, 2020. The Tom Benson Hall of Fame stadium serves as the football facility far the District High School, area colleges,the Ohio High School Athletic Association state football championship games and the annual Pro Football Hall of Fame game held annually,in conjunction with the Hall of Fame inducrion ceremony fesrivities, which sits adjacent to the stadium. Additionally,beginning in 2019,the annual Black College Football Hall of Fame was hosted at Tom Benson Hall of Fame Stadium with Alabama A&M Bulldogs playing the Morehouse Maroon Tigers. The 2023 classic matchup will feature Morehouse College against Virginal Union University Labor Day weekend along with other scheduled weekend celebration and events. In 2021, the City of Canton and Canton City School District entered into a Joint Facility Development and Use Agreement for 25 years giving the Canton City Schools use of Thurman Munson Memorial Stadium (named after local baseball legend Thurman Munson) without paying fees in exchange for them providing significant stadium improvements. Some of the improvements included scoreboards at both fields,new batting cages and installing turf on the infield of the main field. These initial investments were values at over$600,000. As part of this agreement the City of Canton agreed to spend up to $3,500,000 of American Rescue Plan Act(ARPA)revenue loss dollars on artificial turf on field # 2, repair and replace field lights, renovating of locker room areas, renovating concession area,repair and place roof and HVAC systems,repairs to the parking lot and various other ameniries throughout the stadium. These improvements will allow the Munson Stadium Complex to be used for competitive league and tournament play. The stadium will be the home of the Canton City School Bulldogs, the Malone University Pioneers and all local senior baseball leagues amounting to over 1,500 games played over 1 season. - X - Rail passenger service is available through the city of Alliance by Amtrak. In 2003, Canton became a stop on the Cuyahoga Valley Scenic Railroad. The rail system is owned by the Narional Park Service and provides weekend excursions between Canton and Akron. Greyhound and other independent bus lines provide more complete passenger transportation. The Stark Area Regional Transit Authority (SARTA), a separate political subdivision, provides daily public transportarion in and around the City. The bus service inirially was only a citywide service, but became a countywide system with the passage of a .25 percent county sales tax in 1997. The sales tax, renewed in 2002, 2006, and 2011, serves as the primary revenue source for SARTA. On November 8, 2016, voters approved a 10 year .25 county wide sales tax renewaL In addition to the sales tax, SARTA operations are supported, in part, from payments far contract services, State and Federal operating grants,and rider fares. SARTA provides over 2.5 million rides per year in Stark County and through Fixed Route,Proline and Medicaid Services. SARTA has set on course to become the narion's largest bus fleet running on Hydrogen Fuel Cells (HFC) and the largest east of California. The emissions from a hydrogen fuel cells are water. It expects to have 20 buses in its fuel cell fleet. SARTA had implemented a Transit Asset Management Plan (TAMP) and a Transit Development Plan (2020) (TDPs) which looks at the condirion of assets to guide the prioritization of funding transit agencies and help improve their efficiency and effectiveness. SARTA has also has been awarded the CALSTART "Blue Sky Award" in 2020 for starting a HFC program and for being a pioneer in using HFC vehicles in public transportation. Interstate 77 (north-south) and two U.S. highways (U.S. 30 and 62) serve the City. The City is served by four state routes(S.R. 800,43, 153 and 687). The Ala�on-Canton Regional Airport(Airport), a cooperative effart of Stark County and Summit County(in and far which the City does not have any financial interest ar legal obligations),has an operational area of 2,700 acres,most of which is located in Summit County, directly north of and adjacent to Stark Counry, on Interstate 77. The Airport has four airlines offering nonstop service and had 534,257 customers in 2022 a 29% increase from the Airport's 2021 numbers as the world comes out of the health pandemic but still significantly less than its highest numbers of 1.8 million passengers in 2012. In late 2006,the Airport completed its 5-year$60 million STAR Expansion Project which included extending runways, a new baggage claim area, a new food court, a new security screening area, enlarged gathering space, additional parking, and a terminal gate renovation that will allow the Airport to handle up to 1.6 million passengers annually. In 2007,the Airport invested$10 million in a new deicing facility. In 2008,the Airport announced its new 10-year$ll0 million capital improvement plan called CAK2018 which is now complete. The plan includes a 600 ft. runway extension and border patrol faciliry to allow for international flights, expanded aircraft parking, expanded auto parking, a wider entrance road, expanded ticket wing, expanded securiry screening area, a new aircraft rescue and fire fighting maintenance facility,expand the concourse to allow for three more gates, and partner with the nearby Ciry of Green for a new Indusri-ial Park. The runway extension portion of the project was completed in 2010. The new aircraft rescue, border patrol faciliry, expanded parking lot, and expanded securiry-screening area were completed in 2011. In 2012, CAK completed the Firefighting Maintenance Faciliry (ARFF) and continued to add additional parking. Akron-Canton Airport is excited to embark on the final project of CAK 2018,the gate modernization program. This will include eXpanding the new concourse at an estimated cost of $3.65 million, an expanded ticket wing $2.5 million, and widening of the entrance road $5.0 million which are in progress. In 2016, the airport unveiled a $240 million dollar 20-year Master Plan that was approved by the Federal Aviation Administration (FAA) in 2015 which will guide capital investments and improvements at CAK and will include construction projects isolated to the years 2017 through 2020. The Akron-Canton Airport has embarked upon a 5 year strategic plan. The five-year strategic plan(2020-2024)will involve a transparent,inclusive approach to timely execution of objectives and initiatives throughout the organization.This strategy includes an analysis of CAK's competitive situation to others in the industry; a guiding policy for achieving the organization's goals; and specific action plans for implementarion of this plan. The strategic plan will cover multiple years and be routinely updated as the industry, economy and environment continue to evolve(more on this Five-Year Strategic Plan can be found on the CAK website). In April of 2022 the CAK launched a Business Catalyst Program which allows local entrepreneurs to establish a footprint at the airport. This program is aimed at disadvantaged and minoriry owned business by allowing them to reach thousands of potential customers each week by jump-start business and potentially growing into permanent - x1 - retailers at the airport. These entrepreneurs are supplied with businesses terminal space at a trial rate. Mare information on this program can be found at the CAK website under the Newsroom link. Long-Term Financial Planning During 2022 the City has experienced an increase in overall revenue, excluding other financing sources, for the general fund of$940,015 from 202L The City as a whole welcomes back an increase in GAAP-basis revenue(total of all program revenues and general revenues from the statement of activities) of$23,728,542 from 2021 which is after experiencing its first decline in 2020 after nine years of growth. The City's income tax revenue increased by $4,935,013 and property tax revenue increased by $704,020. Charges for service (program revenue) increased by $8,287,669 while operating grants and contributions (program revenue) and capital grants and contributions (program revenue)increased$11,409,122 and decrease$1,764,417 respectively. After Federal Reserves' interest rate reductions in the fourth quarter of 2007 through 2012 which led to net decreases in general fund interest revenue during that period, general fund interest revenue began to slowly increase by $1,446 in 2013, $120,885 in 2014, $227,300 in 2015, $41,751 in 2016, $206,765 in 2017, $50,281 in 2018, and $557,192 in 2019 due to a more aggressive investment portfolio and improved interest rates on investments such as moving some funds into the State Treasury Asset Reserve(STAR Ohio)who during those times was offering one of the better rates of return. There was a decrease in 2021 by $397,233 which was due to the market still feeling the hardships of the market lows of the pandemic. However as the Federal Reserve began raising the prime interest rate connected to borrowing during 2022 and the city moved invested funds out of STAR Ohio into a more aggressive approach in the market and interest revenue increased in 2022 by$733,338. The immediate U.S. economic future is predicted to be uncertain as prices rise in all categories of goods and services and inflation sets in. The increase in costs has been driven by shortages of goods and a reduced workforce during a pandemic and now a war being fought in the country of Ukraine. The Federal Reserve put forth a number of schedule rate hikes to aid in slowing the economy and easing the rise if inflation. The effects of those rate increases has proven to benefit the economy by reducing inflation and holding off a possible recession. Canton has continued to leverage off the effects of the discovery of oil/natural gas shelf in the southern parts of the area. This discovery of natural gas is still expected to bode well for the regional economy. The local economy will begin seeing benefits of the construction of the one-million-square-foot Amazon Fulfillment Center in Canton, Ohio which is expected to employ upwards to 1,000 workers when fully operational. A slow opening of the facility is expected in the summer of 2023 as hiring has begun. The Ciry's unemployment rate held steady at the end of 2022 at 3.7%. The increase in income tax rate approved by the voters of the City on May 8, 2018 of a .5%has helped in the efforts to address the needs of the City in the areas of neighborhood development, the ciry's revitalizarion growth and in infrastructure upgrades. Also, a portion of the revenue generated from the additional income tax increase has been earmark for police and fire which will allow for an increase in workforce staffing levels in those areas. Relevant Financial Policies On May 18, 2022, the City issued $17,317,500 in Series 2022 Various Purpose Improvement Bonds. The bonds were issued to (1)pay the costs of refunding the City's outstanding Various Purpose Notes Series 2022, (2)pay the costs of improving the City's Service Center, (3) to pay the costs of renovating and refurbishing a City salt dome, and (4) to pay the costs of designing, engineering, constructing, furnishing and equipping a building for sanitation operation of the City's service department. The bonds were split$7,249,186 (note refunding, salt dome, and service center projects)to governmental activiries and$10,068,314(sanitation building project)business-rype activities. The Series 2022 Various Purpose Bonds matures on December 1, 2037 and carries an interest rate of 3.14%. Principal payments are due December 1 of each year and interest payments are due June 1 and December 1 of each year. Payments are made from the capital projects fund and refuse enterprise fund During 2022, the City continued to make biweekly sick expense premium deposits into its compensated absences claim fund to help offset the cost of current and previous unfunded compensated absences. The City previously changed the premium calculation from 125% of the total cost of the sick leave accrued on biweekly payrolls to 105% for 2010. However, the premium returned to 125% January 1, 2011,remained 125% through 2015. During - Xll - 2016 the premium was reduced again to 105% and reset to 125% during 2017 and has continued with that rate in 2022. Major Initiatives In 2022,the City annexed approximately 91.305 acres and continues to explare further annexation options. A Downtown Special Improvement District (District) was formed in the City's central business area in 1997 by petition of a majority of the property owners. In March 1997, Canton City Council approved the petition and the DistricYs articles of incorporation and initial services plan. The District has the authority to assess property owners for the cost of public services and improvements that specifically benefit properties and the District. On March 3, 2016 the District filed an application with Council in accardance with Ohio Revised Code Section 4301.82(B) to have certain properry designated as an outdoor refreshment area. On April 25, 2016, Council passed an ordinance establishing and designaring the Downtown Canton Designated Outdoor Refreshment Area(DORA) in accordance with Revised Code Section 4301.82 which allows alcoholic beverages to be consumed outdoors within the established boundaries and in an official cup as required by law. Canton was one of the first in the state to pass such a law. In 2023, an additional DORA area has been established in the Hall of Fame Village known as the Hall of Fame Village Community Entertainment District. In 2017, Council passed an ordinance establishing the boundaries of a proposed Downtown Redevelopment District including an Innovation District which falls within a ten acre area within the City. The goal is to establish an Innovation District that will attract well-paying jobs far young people from multi-state areas by providing and attracting diversified business, concentrating on providing retention an expansion outreach, recruiting technology based companies,providing high speed broadband of 100 gigabits per second within the Innovation District area and incenrives to attract research and development based companies to name a few. This plan is being implemented in collaborarion with the Canton Regional Chamber of Commerce, existing downtown technology companies, and all institutions that have an impact on Canton's downtown economic development including Stark State College, Stark Development Board, Special Improvement District,other agencies and organizations. In 2015, with the idea of raising funds by collecting donations from the artistic, charitable, business and other community partners, Canton began planning to develop the downtown green space park known as Market Square which would be used as a venue for small events such as concerts, sporting rallies etc. Further exploration and ideas of these partners evolved into a larger project of Phase I,Phase 2 and even a Phase 3. Phase 1 being the design and construction which includes underground utilities, earthwork, hardscape, landscape, lighting a performance stage with cover and a restroom/storage facility. Phase 2 being reconstruction and streetscaping of 3rd Street NW and Court Avenue NW areas surrounding the plaza and a large LED screen. Phase 3 includes an iconic sculpture and additional modified features including a cafe. In May 2020, Council approved the renaming of"Market Square"to Centennial Plaza and to begin construction on the Centennial Plaza Project as previously approved by council at an estimated cost of$13.2 million which will be funded in part with City Funds from Issue 13 revenues,private sector donations and state grants as set out in the plan with the hopes of having things completed in time for the September 2020 Centennial Celebration of the founding of the NFL in Canton. The property will have interactive activities that will be programmed by the Pro Football Hall of Fame with the intention to try to connect the City and the tourist attraction known as Hall Of Fame Village. Centennial Plaza was completed in 2020 and is now a central location in the downtown area for multi-events and celebration moments. In 2022 the City started on construction of a $1.6 million dollar public restroom structure that would allow guests participating in downtown events in the plaza the opportunity to use an indoor restroom facility. In May of 2023,the restroom construction project for visitors of the plaza was completed and open for the June First Friday event. In 2022 the City pledged 5.8 million dollars from the American Rescue Plan Act(ARPA)to improve and update its City Parks. Willig Field,which sit in the northeast area of the city,received$2.3 million in funds to turf the infields of its 4 playing fields. The City also allocated$3.5 million in ARPA funds to put water spray parks in each quadrant of the City along with additional playground amenities. - Xlll - In 2022 the Ciry of Canton entered into a purchase agreement to buy (4) new Ambulances for the fire department. These vehicles are used almost 24 hours a day and complete over 17,000 service runs annually. In 2022, the City of Canton and Habitat for Humanity signed an agreement that has the City using $3.15 million dollars in ARPA funds to create 130 housing related projects which include new home construction, home preservation, home repair and demolition and greenspace improvements in high-poverty neighborhoods. These affordable housing opportunities will be in three Southeast Canton Neighborhoods:Lathrop,Belden and Hartford. In 2004, the City chose to consolidate all of its previous community reinvestment areas into one area known as the Central Neighborhoods Community Reinvestment Area. (CRA) The area covers the City's central downtown business district, significant portions of the City's northeast and southeast quadrants, and portions of the southwest and northwest quadrants closest to the City's downtown. Residential properties in the Central Neighborhoods Community Reinvestment Area can receive 100 percent abatement per year for ten years on the increased value of all qualifying improvements, restoration and construction. Commercial properties in the area can receive 100 percent abatement for the increased value all qualifying improvements, restoration and construcrion for the first 5 years and a 20 percent reduction per year over the remaining five-year period. The construction must be over $50,000 for commercial projects and$5,000 for residential projects to qualify. In 2020, the City of Canton sought to further encourage revitalization of the existing neighborhoods and housing stock while promoting the development of new structures. The City proceeded to expand the CRA program to include the entire City of Canton, thereby providing temporary tax abatement of increased real property taxes on qualifying residential, commercial or industrial real property improvements within the area. This could be residential remodeling/renovations or new residential construction as well as new commercial/industrial construction or expansion projects. The abatement allows owners to pay taxes solely on the pre-improvement assessed value of their residenrial properry for 15 years after improvements are completed. Property owners will not be required to pay property taxes on any increase in value that resulted from renovation or new construction on the properry for a period of 15 years. Additionally, The City of Canton's Commercial/Industrial abatements are ofFered on a per project basis, subject to the approval of the affected School District,to companies that are looking to either construct a new facility or expand a current facility,and require significant investment into real property value. The abatement offered can be up to 100% and up to a 15-year period, with approval of the affected School District. The City of Canton can offer an abatement of up to 50%and up to a 15-year period,without the approval of the affected School District. Beneficially, with the increased potential for tax abatements offered, the City of Canton believes this will lead to positive neighborhood impact with new home construction and renovation increasing the values of surrounding properties and fill in vacant lots, population growth through new housing bringing new families into Canton and grow demand for schools, businesses, and other community services, and this acrivity will help limit funding cuts to schools and other property tax funded organizations as they will conrinue to receive all tax revenues they currently receive and are likely to see increases in revenue as overall property values increase. The City of Canton has started a number of programs which aid in economic,community, and tourism development. The Designated Outdoor Refreshment Area (DORA), established in 2016, is an area of 69 acres of land in Downtown Canton which allows for individuals to stroll through downtown with a drink in hand. Designated DORA cups were designed specifically for businesses participating and beverages intended for consumption outside of the establishment must be contained in the official plastic DORA cup. 21 downtown businesses participate in the DORA. In 2020, the City of Canton iniriated its Energy Special Improvement District(ESID)which allows far the Properry Assessed Clean Energy (PACE) financing of commercial ar industrial properties. This program allows for the financing of energy efficiency improvements the special assessments against the property. This financing can be used for costs such as roofs,HVAC,solar,LED lighring,and others. The City of Canton has uniquely positioned itself central to the creation of Tourism Development Districts (TDD). The TDD was first used in 2017 for the Hall of Fame Village TDD,then twice in 2020 with the Downtown Canton TDD and Hall of Fame Fitness TDD,and a fourth time in 2021 for the Centennial Plaza TDD. These districts assess a special tax (2%) on all receipts of wholesale and retail sales of tangible personal property from doing business within the district. - X1V - Lastly, the City of Canton has established an area known as a Community Entertainment District (CED). The designarion of this area allows for the additional issuance of up to 15 D-5J liquor licenses within the district. The intent of this is to promote the growth of additional food and bar establishments within the City of Canton. Addirionally,there is a second CED being established for the Hall of Fame Village. In 2013, the City established two HUD Neighborhood Revitalization Strategy Areas — the Eastside and Central NRSAs. During 2022, the City expended over $1,000,000 in Federal Community Development Block Grant (CDBG)Program funds on NRSA activities, including housing rehabilitation,youth enrichment programs,programs to prepare youth for college and give minority youth exposure to career opportunities in college. Thirty two (32) housing projects were completed in both the Eastside and Central target areas. The City requested renewal of its two NRSA areas when it submitted its 2020-2023 Consolidated Plan. The renewal was approved for another five-year period. Since the NRSA was established in 2013,the City has invested over$7 million in the NRSA areas. In 2020, Habitat, in partnership with the City,began a renewal project in the Eastside NRSA. The project included acquisition of two(2)homes and rehabilitation of three(3)homes. They also created a green space at Allen Ave SE & John Ct SE. Habitat also built five (5) new homes in 2022 and provided HUD-Certified Housing Counseling to the homebuyers. Funding was awarded by the City and through the Community Development Department to convert the former Lehman High School into a 62-unit independent living facility for senior citizens. Lehman was converted to a middle school in 1976 and closed in 2006. The project was completed in June of 2023 and has begun housing tenants. The City Engineering Department oversees all stages of street and sewer improvement projects. During 2022, the City completed: $6.6 million of road paving,resurfacing and road stabilization projects throughout the City. Some of the larger engineering projects in various stages of planning, development, and construction include: 41ST St. Reconstrucrion, West Tuscarawas Corridor, l lr� Street SE Realignment Project, 3r� St. Resurfacing, 30t" St, 36tn Street Road and Storm Sewer PH 1 & 2, Colonial Blvd PH 1 & 2, and 39`h and Steese Street. The City have also started a Road Stabilization Project that is being tested as an alternative against regular paving methods. In 2022, there were $2.047 million of water projects completed. There were numerous projects for water lines in varying stages of planning, development and construction including: Edgefield II, 34`h St.NW,Harvard Water Main Project, Harter Heights Water Main Replacement, Cleveland Ave & Market Ave Water Main Extensions, and Fairmount Phase IL The Water department has also started the Sugar Creek Water Treatment Plant & Cromer Reservoir improvement projects in conjunction with the state relocating water lines on State Route 62. In 2022, the City's Water Reclamation Department continued its progress in the $92.0 million replacement of its Water Reclamation Facilities and membrane. The membrane purchase,installation, and corresponding construction, is estimated to continue in 2022 and nearing complerion in 2023. Through December 2022,the City had expended $88.1 million of the$92.0 million project. The year 2022 continued to be a difficult year for many residents of the City due to a world pandemic. The City of Canton received American Rescue Plan Assistance (ARPA) funds from the federal government in which some of these funds will be used to fund construction projects,provide small business grants, and provide funding to low-to- moderate income neighborhoods and families to help bring about affordable housing programs to those residents. Debt Administration At the end of 2022, the gross indebtedness of the City was $ll3,267,722. The gross indebtedness of the Ciry was $104,341,348 at the end of 2021. During 2022, the City continued drawing down for Sugar Creek WTP, and Cromer Reservoir loans totaling $1,506,338. In 2022,the City received$35,346 from the 2010 Water Reclamation Facility (WRF) phosphorus/nitrogen removal project loan, and $0 from the 2014 WRF phosphorus — MBR equipment loan. These projects will take almost seven years to complete at an estimated cost of over $92 million. At December 31, 2022, the City had$85,001,669 in OWDA loans outstanding in the enterprise funds and business- type activities and $24,695 in OWDA loans outstanding in the governmental activities. During 2022, the City - XV - received loan proceeds from the Ohio Public Works Commission (OPWC) to finance various projects. The City received $849,163 in OPWC loan proceeds in the enterprise funds and business-type activities and $0 in OPWC loan proceeds in the governmental activiries. At December 31, 2022, the City had $3,801,950 in OPWC loans outstanding in the enterprise funds and business-type activities and $3,499,980 in OPWC loans outstanding in the governmental activiries. The City had$594,601 in long-term State Infrastructure Bank(SIB) Loans outstanding as of December 31,2022,all of which are reported in the governmental activities. In 2022,the City issued$17,317,500 in Series 2022 Various Purpose Improvement Bonds. The bonds were issued to (1) pay the costs of refunding the City's outstanding Various Purpose Notes, (2) pay the costs of improving the City's Service Center, (3) to pay the costs of renovating and refurbishing a City salt dome, and(4) to pay the costs of designing, engineering, constructing, furnishing and equipping a building for sanitation operation of the City's service department. The bonds were split $7,249,186 (note refunding, salt dome, and service center projects) to governmental activities and $10,068,314 (sanitation building project) business-type activiries. The Series 2022 Various Purpose Bonds matures on December 1,2037 and carries an interest rate of 3.14%. In 2018, Moody's Investor Services made no change to its stable outlook for the City. However, in 2012 Moody's Investor Services confirmed the City's rating of A1 and changed its negative outlook to stable. In 2010, Moody's downgraded the City's rating to A1 from Aa3 and gave the City a negative outlook on general obligation bond issue. Fitch Rating Service also downgraded the City from AA- to A+ but said its outlook is stable. Neither Moody's Investor Services nor Fitch Rating Services has rated the City since 2018 as there has been no outstanding bonds since and last rating was A- at that time. The general obligation indebtedness of the City is subject to two statutory debt limitations referred to as the "direct debt limitation" (by Ohio Revised Code Section 133.05). The total principal amount of voted and unvoted nonexempt net indebtedness of the City may not exceed 10.5 percent of its assessed value of real and personal property, and in addition, the net principal amount of unvoted nonexempt debt may not exceed 5.5 percent of the same total assessed value. The City's overall legal debt margin was $95,358,427 and an unvoted debt margin of$46,551,220 as of December 31,2022. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Canton for its Annual Comprehensive Financial Report as of December 31, 2022. The Certificate of Achievement is the highest form of recognition for excellence in state and local government. To be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized financial report whose contents conform to program standards, as well as satisfy both generally accepted accounting principles and applicable legal requirements. Acknowledgements Special recognition for the preparation of this report is made to contributing department heads,Treasurer's staff,my own Auditor's office staff and City Council for their continuing support and commitment to responsible fiscal reporting. Special acknowledgement is given to my administrative staff: Dwayne Knight, Christine Bagley,Heather Locke-Williams, and John Slebodnik for their continued dedication and commitment to sound financial reporting in the preparation of this report. Sincerely, �} 1 t � � ; ,tJ.L1 ��j-=i,'L�'��., Ilr ti Richard A Mallonn II City Auditor - xvi - �� Go�7erilillent Finance Officers Association Certificate of Achievement for Excellence 111 F111a11Clal Re�J01 tlllb Presented to Clt�' Of C�1Ilt0Il (Jllio For its Annual Coillprelleiisi��e Finailcial Report For tlie Fiscal Year Ended December 31. 2021 �?� - P� 7��,� Eleciitit�e Directoi:!CEO -xvii- CITY OF CANTON STARK COUNTY,OHIO CITY OFFICIALS FOR THE YEAR ENDED DECEMBER 31, 2022 Mayor Thomas M. Bernabei Council Members William Sherer II,President James Babcock Gregory Hawk Peter Ferguson Louis Giavasis Bill Smuckler John Mariol II Kevin Hall Frank Morris Robert Fisher Chris Smith Jason Scaglione Brenda Kimbrough City Auditor Richard A. Mallonn II Ciry Treasurer Kim Perez Law Director Jason P.Reese Director of Income Ta� Cynthia Allenswarth Director of Public Service John Highman Director of Public Safery Andrea Perry Fire Chief Kwameshallahu Bennett Police Chief John Gabbard City Engineer James Benekos -xviii- a� � � .x � — � � � � a � � � � •° 3 0 L1 UQ � � a� °� � a � � � � � � �� � � � o U � � � � � U � �" � � � � Q w Q � � �. � � � � o � � o U �� x �-r — V V � 3.. NO s-r y,�,� W � U U � Q � � bp � � 'C � � �� � ,�U. � � �" O .� O � U � N .S". 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"� '_�� ���,� � � r 1 _ — - , � � , r � � 1 M� — , • � ,� 'j � � � �' � � j � I � _ � I � � � � � ' � ' :. � � � � � � .�* � - '� .er�b -•. �r+ � � r t.•, I � Q _ ,�a��� `, — �—" � .__ C ,/ ,� w .._ . ` ',..._ �, � � � ��' - ti. � _. , , . , — I�'� `�` �. � -_ - ,,. .� , ����rt �. _ _ � � � _ �. � _ - �. - '�,��r�--�.,,._ i - — - � � � � � - ,�. � � �•� - - - + r. � � — �e J� �� - _ � '. _ ~ '� • ' - _,-���i i.''�' _ .. � r-.� , - 1 ,� �� � - '� ,�a _ � ' � _ ��� t*. � ; i � Julian 333(-ount}'Line Road.��'est Westerville,Ofi d3082 & Grube 614-H46-1899 — Jginc.biz Independent Auditor's Report City of Canton Stark County,Ohio 218 Cleveland Avenue SW Canton,Ohio 44702 To the Members of Council and Mayar: Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units,each major fund,and the aggregate remaining fund information of the City of Canton, Stark County,Ohio,as of and for the year ended December 31,2022,and the related notes to the financial statements,which collectively comprise the City of Canton's basic financial statements as listed in the table of contents. In our opinion,the financial statements referred to above present fairly,in all material respects,the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Canton, as of December 31, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General, Community and Economic Development, and American Rescue Plan Act funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 of Canton and to meet our other ethical responsibiliries,in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As described in Note 3 to the financial statements, the City of Canton restated beginning net position for Custodial funds to properly account for removing the Board of Health component unit activity. Our opinions are not modified with respect to this matter. 1 Serving Ohio Local Governments City of Canton Stark County Independent Auditor's Report Page 2 Responsibilities of Managerrcent 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 far the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Canton'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 Staterr�ents 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 generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulring from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentarions, or the override of internal control. Misstatements are considered material if there is a substanrial likelihood that,individually or in the aggregate,they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and GovernmentAuditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,and design and perform audit procedures responsive to those risks.Such procedures include examining, on a test basis,evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the City of Canton'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 of Canton'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 Canton Stark 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 assets and liabilities and pension and other post-employment benefit contributions listed in the table of contents 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 informarion because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplerrcentary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Canton's basic financial statements.The accompanying 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 recards used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects,in relation to the basic financial statements as a whole. Other Information Management is responsible far the other information included in the annual report. The other information comprises the introductory and statisrical secrions but does not include the basic financial statements and our auditor's repart 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. Other Reporting Required by GovernmentAuditingStandards In accordance with Government Auditing Standards, we have also issued our report dated June 21, 2023 on our consideration of the Ciry of Canton's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters.The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the City of Canton's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Canton's internal control over financial reporting and compliance. 11� E��J2.�-G�L� r�2c. V � Julian&Grube,Inc. June 21,2023 3 THIS PAGE IS INTENTIONALLY LEFT BLANK -4- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 The management's discussion and analysis (MD&A) of the City of Canton's (the "City") financial performance provides an overall review of the City's fmancial activities far the year ended December 31,2022. The intent of this discussion and analysis is to look at the City's financial performance as a whole; readers should also review the transmittal letter, the basic financial statements and the notes to the basic financial statements to enhance their understanding of the City's financial performance. FINANCIAL HIGHLIGHTS • The City's net position increased$38.8 million as a result of this year's operations. Net position of the business-type activiries increased by $202 million from 2021's net posirion, or 1220%, and net position of governmental activities increasedby$18.6 million,or 13.05%from 2021's netposition. • General revenues accounted for$94.9 million, or 69.24%, of total governmental activities revenue. Program specific revenues accounted for$42.1 million,or 30.76%,of total governmental activities revenue. • The City had$118.4 million in expenses related to govemmental activities; $42.1 million of these expenses was offset by program specific charges for services and sales,grants or contributions. The remaining expenses of the governmental activities of$763 million were offset by general revenues (primarily property taxes, income taxes and unrestricted grants and enritlements)of$94.9 million. • The City's business-type activiries consist of water, sewer,refuse, and building code operations. The Ciry had$42.4 million in expenses related to business-type activiries. All of these expenses were offset by $62.2 million of program specific charges for services and sales,grants or contributions. Program revenues were sufficient to cover expenses of the business-type activities in 2022. General revenues of the business-type activiries were $0.4 million for 2022. Overall,total revenues of the business-type activities exceeded expenses by$19.8 million. • The general fund had revenues and other financing sources of$72.4 million in 2022. This represents an increase of $0.6 million from 2021 revenues. The expenditures and other financing uses of the general fund, which totaled $76.0 million in 2022, increased$6.4 million from 2021. The net decrease in fund balance for the general fund was $3.7 million,or 17.70%. • The City received no rating change in 2022;Moody's maintains a stable outlook on the Ciry's debt. • The City reported operating income of$0.1 million in its compensated absences claim internal service fund. The total liability for compensated absences decreased$0.3 million from $8.3 million at December 31, 2021 to $8.0 million at December 31, 2022. During 2022, the City continued to deposit premiums equal to 125% of earned benefits of employees into the fund. The compensated absences claim internal service fund had a deficit net position of$7.4 million at December 31,2022. USING THIS ANNUAL FINANCIAL REPORT This annual report consists of a series of financial statements and notes to these statements. These statements are organized so the reader can understand the Ciry as a financial whole, an entire operating enriry. The statements then proceed to provide an increasingly detailed look at specific financial acrivities. This annual financial report consists of a series of financial statements. The statement of net posirion and statement of activities provide information about the acrivities of the City as a whole,presenting both an aggregate view of the City's finances and a longer-term view of those finances. Fund financial statements provide the next level of detail. For governmental funds,these statements tell how services were fmanced in the short-term as well as what remains for future spending. The fund financial statements also look at the City's most significant funds with all other nonmajor funds presented in total in one column. -5 - CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Reporting the City as a Whole The Statement of Net Position and the Statement ofActivities While this document contains a large number of funds used by the City to provide programs and activities,the view of the City as a whole looks at all financial transactions and asks the question, "How did the City perform financially during 2022?" The statement of net position and the statement of acrivities answer this quesrion. These statements include all assets and deferred outflows of resources and liabilities and deferred inflows of resources using the accrual basis of accounring similar to the accounting used by most private-sector companies. The accrual basis of accounting will take into account all of the current year's revenues and expenses regardless of when cash is received or paid. These two statements report the City's net position and changes in this position. This change in net position is important because it tells the reader that,for the City as a whole,the financial position of the City has improved or diminished. The causes of this change may be the result of many factors, some financial, some not. Non-financial factors include the City's property tax base, current property tax laws in Ohio restricting revenue growth,facility conditions,required community programs and other factors. In the statement of net position and the statement of activities,the City is divided into two distinct kinds of activities: Governmental Activities: Most of the City's basic services are reported here, including the police, fire, street and highway maintenance,capital improvement,vehicle acquisirion,parks and recreation,and general administrarive. Income taxes,property taxes,undivided local government, ambulance user fees and state and federal grants finance most of these activities. Business-Type Activities:The City charges a fee to customers to help cover all or most of the cost of certain services it provides. The City's water,sewer,refuse and building code operations are reported here. Reporting the City's Most Significant Funds Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Ciry can be divided into three categories: governmental funds,proprietary funds,and fiduciary funds. Fund financial reports provide detailed information about the City's major funds. The City uses many funds to account for a multitude of financial transactions. However,these fund financial statements focus on the City's most significant funds. Some funds are required to be established by State law. However, City Council establishes many other funds to help it control and manage money for particular purposes(Ex.parking deck fund)or to show that it is meeting legal responsibilities far using certain taxes,grants,and other money(Ex.grants received from the U.S.Department of Housing and Urban Development). Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government- wide financial statements. However,unlike the government-wide financial statements,governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Governmental 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. Such information may be useful in evaluating a government's near-term financing requirements. -6- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so,the readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains a multitude of individual governmental funds. The City has segregated these funds into major funds and nonmajor funds. The City's major governmental funds are the general fund, the communiry and economic development fund, the American rescue plan act, the capital projects fund and the motor vehicles purchase fund. Information for major funds is presented separately in the governmental fund balance sheet and in the governmental statement of revenues, expenditures, and changes in fund balances. Data from the other governmental funds are combined into a single, aggregated presentation. Proprietary funds When the City charges customers far the full cost of the services it provides whether to outside customers or to other units of the Ciry, these services are reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the statement of net position and the statement of activities. In fact, the City's enterprise funds (a component of business type funds)are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as a statement of cash flows. We use internal service funds,health insurance,worker's compensation insurance,and compensated absences claim funds, (the other component of proprietary funds)to report acrivities that provide a service to the City's other programs and activities. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. 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. The accounting used for fiduciary funds is much like that used for proprietary funds. Private-purpose trust and custodial funds are the City's fiduciary fund rypes. Required Supplementary Information (RSI) The RSI contains information regarding the City's proportionate share of the Ohio Public Employees Retirement System's (OPERS) and Ohio Police and Fire Retirement System(OP&F)net pension liability, net pension asset, net OPEB liability,net OPEB asset,and the City's schedule of contributions to OPERS and OP&F. Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. -7- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Government-Wide Financial Analysis The table below (Table 1)provides a summary of the City's net position at December 31, 2022 and 2021. Certain amounts at December 31,2021 have been restated as described in Note 3.A. Table 1 Net Position (In Millions) Governmental Business-Type Activities Acrivities Total Restated Restated Restated 2022 2021 2022 2021 2022 2021 Assets Current and other assets $ 159.2 $ 130.3 $ 75.5 $ 60.5 $ 234.7 $ 190.8 Capital assets,net 188.7 178.8 232.7 222.7 421.4 401.5 Total assets 347.9 309.1 308.2 283.2 656.1 592.3 Deferred outflows of resources 29.5 21.5 42 2.7 33.7 242 Liabilities Current and other liabilities $ 73.1 $ 473 $ 15.0 $ 12.0 $ 88.1 $ 59.3 Long-term liabilities: Due in more than one year 17.2 163 91.2 85.3 108.4 101.6 Net pension liabiliry 67.9 79.7 7.6 12.0 75.5 91.7 Net OPEB liability 9.9 9.4 - - 9.9 9.4 Totalliabilities 168.1 152.7 113.8 109.3 281.9 262.0 Deferred inflows of resources 48.4 35.6 12.9 11.1 61.3 46.7 Net position Net investment in capital assets 178.5 167.8 142.0 130.0 320.5 297.8 Restricted 34.5 28.3 - - 34.5 28.3 Unrestricted (52.1) (53.8) 43.7 35.5 (8.4) (18.3) Total net posirion $ 160.9 $ 142.3 $ 185.7 $ 165.5 $ 346.6 $ 307.8 The City applies Governmental Accounting Standards Board(GASB) Statement 68, "Accountin� and Financial Reporting for Pensions-an Amendment of GASB Statement 27" and GASB Statement 71, "Pension Transition for Contributions Made Subsequent to the Measurement Date-An Amendment of GASB Statement No. 68"which significantly revised accounting for pension costs and liabilities. For reasons discussed below, many end users of this financial statement will gain a clearer understanding of the City's actual financial condition by adding deferred inflows related to pension and the net pension liability/asset to the reported net position and subtracting deferred outflows related to pension. The net pension liability/asset is reported pursuant to Governmental Accounring Standards Board (GASB) Statement 68, "Accounting and Financial Reporting for Pensions an Amendment of GASB Statement 27." The net other postemployment benefits (OPEB) liability/asset is reported pursuant to GASB Statement 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions." For reasons discussed below,many end users of this financial statement will gain a clearer understanding of the City's actual financial condition by adding deferred inflows related to pension and OPEB,the net pension liability,and the net OPEB liability to the reported net position and subtracting deferred outflows related to pension and OPEB,the net pension asset, and the net OPEB asset. - 8 - CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Governmental Accounting Standards Board standards are national and apply to all government financial reports prepared in accordance with generally accepted accounting principles. Prior accounting for pensions (GASB 27) and postemployment benefits (GASB 45) focused on a funding approach. This approach limited pension and OPEB costs to contributions annually required by law, which may or may not be sufficient to fully fund each plan's net pension liability/asset 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/asset and the net OPEB liability/asset to equal the Ciry'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 affecring 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/asset and net OPEB liability,respectively,not accounted for as deferred inflows/outflows. Over time,net position can serve as a useful indicator of a government's financial position. At December 31,2022, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by$346.6 million. At year-end, net position was$160.9 million and$185.7 million for the governmental activities and the business-type activities,respectively. -9- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Capital assets reported on the government-wide statements represent the largest portion of the City's net position. At year-end, capital assets, net represented 64.23% of total assets. Capital assets include land, construction in progress, buildings and structures,vehicles,equipment,intangible right to use assets,and infrastructure. The net investment in capital assets at December 31,2022,was$178.5 million and$142.0 million in the governmental activities and business-type activities,respectively. These capital assets are used to provide services to citizens and are not available far future spending. Although the City's investment in capital assets is reparted net of related debt,it should be noted that the resources to repay the debt must be provided from other sources,since capital assets are not used to liquidate these liabilities. Long-term liabilities decreased due to the City paying down its debt obligations. The City reports a liability for its share of the net pension liability and net OPEB liability which are outside of the control of the City. The City contributes its statutorily required contributions to the pension systems; however, it's the pension systems that collect, hold and distribute pensions and OPEB to City employees, not the City. The pension and OPEB liabilities will fluctuate annually due to a number of factors including investment returns,actuarial assumptions used,and the City's proportionate share of net pension and net OPEB costs. As a result,many end users of this financial statement will gain a clearer understanding of the City's actual financial condition by adding deferred inflows related to pension and OPEB,the net pension liability and the net OPEB liability to the reported net position and subtracting deferred outflows related to pension and OPEB and the net pension asset. Had the Ciry not applied the requirements of GASB 68 and GASB 75,the total net position for the governmental activities and business-type activities would have been as follows far 2022 and 2021 (in millions): Governmental Governmental Business-Type Business-Type Activities Activities Activities Activities 2022 202] 2022 2021 Total net position(with GASB 68/GASB 75) 160.9 142.3 185.7 165.5 GASB 68 calculations: Add:Deferred inflows related to pension 33.3 17.1 9.6 6.0 Add:Net pension liability 67.9 79.7 7.6 12.0 Less:Net pension asset (0.6) (0.4) (0.4) (0.3) Less:Deferred outflows related to pension (23.7) (13.6) (4.]) (1.9) GASB 75 calculations: Add:Deferred inflows related to OPEB 8.1 11.2 3.0 4.8 Add:Net OPEB liability 9.9 9.4 - - Less:Net OPEB asset (4.1) (2.3) (2.7) (1.4) Less:Deferred outflows related to OPEB (5.8) (7.9) (0.1) (0.8) Total net position(without GASB 68/GASB 75) 245.9 235.5 198.6 183.9 As of December 31,2022,the City is not able to report positive balances in all three categories of netposition for its governmental activities and for the government as a whole(governmental activities and business-type activities). A portion of the City's net position, $34.5 million represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position is a deficit of$8.3 million. Unrestricted net position may be used to meet the government's ongoing obligations to citizens and creditors without constraints established by debt covenants, enabling legislation, or other legal requirements. - 10- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 The table below(Table 2)shows the changes in net position for fiscal year 2022 and 2021. Table 2 Change in Net Position (In Millions) Governmental Business-Type Activities Activities Total 2022 2021 2022 2021 2021 2020 Revenues Program revenues: Charges for services and sales $ 142 $ 13.9 $ 57.3 $ 49.2 $ 71.5 $ 63.1 Operating grants and contributions 26.0 14.5 - 0.1 26.0 14.6 Capital grants and contributions 2.0 2J 5.0 6.0 7.0 8.7 Total program revenues 42.2 31.1 62.3 55.3 104.5 86.4 General revenues: City income taxes 73.5 68.6 - - 73.5 68.6 Property taxes 6.5 5.8 - - 6.5 5.8 Intergovernmental(grants and entitlements) 7.7 7.8 - - 7.7 7.8 PILOTS 1.6 1.6 - - 1.6 1.6 Other local taxes 1.0 0.5 - - 1.0 0.5 Interest and investment earnings (2.8) (0.3) 0.1 - (2.7) (0.3) Other 7.3 5.3 0.3 0.2 7.6 5.5 Total general revenues 94.8 89.3 0.4 0.2 95.2 89.5 Total revenues 137.0 120.4 62.7 55.5 199.7 175.9 Expenses Program expenses: General government 40.7 22.3 - - 40.7 22.3 Security of persons and property 44.6 41.5 - - 44.6 41.5 Transportation 13.6 11.4 - - 13.6 11.4 Community environment 9.8 7.0 - - 9.8 7.0 Leisure time activities 9.5 6.5 - - 9.5 6.5 Interest and fiscal charges 0.2 0.3 - - 0.2 0.3 W ater - - 16.9 12.9 16.9 12.9 Sewer - - 16.0 14.4 16.0 14.4 Refuse - - 6.7 62 6.7 62 Building - - 2.9 1.3 2.9 1.3 Total program expenses ll 8.4 89.0 42.5 34.8 160.9 123.8 Increase(decrease) in net position 18.6 31.4 20.2 20.7 38.8 52.1 Net position at beginning of year l 42.3 110.9 165.5 144.8 307.8 255.7 Net position at end of year $ 160.9 $ 142.3 $ 185.7 $ 165.5 $ 346.6 $ 307.8 Governmental Activities The 2.5%income tax is the largest revenue source for the City. Designated by ordinance,the capital projects fund receives 18% of net income tax received. In addition, the motor vehicle purchase fund receives 4%,the neighborhood fund receives 2%and the comprehensive fund receives 12% of net income tax received. The remaining 64% is allocated to the general fund and is used for such things as police and fire protection, street maintenance,and other purposes determined by council. - 11 - CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 When looking at sources of income to support governmental activities, it should be noted that charges for services are only 10.36% of governmental activities revenue. Revenues provided by sources other than city residents in the form of operating grants and contributions,capital grants and contributions and grants and entitlements not restricted to specific programs comprise another 26.06%. The remaining revenues are primarily generated locally through property taxes (4.74%) and income taxes (53.65%). Overall,governmental activities revenues increased$16.6 million primarily due to the City recognizing$13.4 million in ARPA grant revenues.Income taxes increased as the economy continued to see more people return to work generating more income tax revenue for the Ciry. Operating grants and conh-iburions increased due to the City recognizing 13.4 million in ARPA grant revenue. Expenses of the governmental activities increased$29.4 million or 33.03%. This increase is partially due to the City spending $14.4 million in ARPA grant funds to improve the City.Additionally,the City's pension expensed increased$7.9 million due to changes in assumptions made by the pension systems which are outside of the control of the City. Graph 3 represents the cost of each of the Ciry's governmental programs: security of persons and property,general government, transportation,public health,leisure time activities,community environment,and interest and fiscal charges. The net cost shows the financial burden that was placed on the City's taxpayers by each of these functions. The decrease in the net cost demonstrates the greater ability to recover the cost of the program under the current revenue policies. As indicated by governmental program expenses,cirizen's safety,health,and well-being is emphasized. Graph 3 Program Expenses 0 8��� ��� 8� 34% � 12% - _ 38% ■General Government ■ Security of Persons and Property ■Transportation Community Environment ■ Leisure Time Activities ■ Interest and Fiscal Charges - 12- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 The graph below compares the City's general revenues(which includes property taxes,income taxes and unrestricted grants and entitlements)and program revenues for fiscal year 2022 and 2021. Graph 4 Governmental Activities-General and Program Revenues(In Millions) $140 $120 $94.8 $100 $89.3 $80 ■General Revenues $60 $40 O Program Revenues $20 $42.2 $31.1 $- Fiscal Year 2022 Fiscal Year 2021 The statement of activities shows the cost of program services and the charges for services and grants offsetting those services. The following table shows,for governmental activities,the total cost of services and the net cost of services. That is,it identifies the cost of these services supported by tax revenue and unrestricted State grants and entitlements. Table 5 Governmental Acrivities(In Millions) Total Cost of Net Cost of Total Cost of Net Cost of Services Services Services Services 2022 2022 2021 2021 Program expenses: General government $ 40.7 $ 21.5 $ 22.3 $ 11.4 Security of persons and property 44.6 37.2 41.5 33.0 Transpartation 13.6 8.0 11.4 5.4 Community environment 9.8 3.5 7.0 2.4 Leisure time activities 9.5 5.9 6.5 5.3 Interest and fiscal charges 02 02 0.3 0.3 Total $ 118.4 $ 76.3 $ 89.0 $ 57.8 The dependence upon general revenues for governmental activities is apparent,with 64.41%of expenses supported through taxes and other general revenues. - 13 - CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 The graph below compares the City's governmental activities program revenues and total governmental activities expenses for fiscal year 2022 and 2021. Graph 6 Governmental Activities—Program Revenues vs.Total Expenses(In Millions) $90 $80 $118.4 $70 $89.0 $60 $50 $40 ❑Program Revenues $30 $42,2 ■Expenses $20 $10 $31.1 $- Fiscal Year 2022 Fiscal Year 2021 Business-Type Activities The net position of the business-type activities include the water, sewer, refuse and building code enterprise funds. For a description of these funds,see the accompanying notes to the basic financial statements. These programs had program revenues of$62.3 million and general revenues of$0.4 million which were sufficient to support the total expenses of$42.5 million. Total revenues exceeded total expenses by$19.8 million in 2022. The graph below shows the business-type activities assets,liabilities and deferred inflows and net position at year-end. Net Position in Business-Type Activities Graph 7 Net Position of Business-Type Activities(In Millions) $300 5286.6 5312.4 $250 $I fi5.5 $20U $Is5.7 $150 $100 `�4 M .,•.•• ' �r � »�X�r� _- -_ �I:�� i�i': �-"_�il.l,:�t� $50 $126.7 • _ I�,'• $120.1 � �'� $ w�.: ..... v,„. .i .:t�`'t�'w:.- December 3l,2022 December 37,2021 OLiabilities and deferred in0ows ONet position ■Assets and deferred outllows The basic financial statements for the major funds are included in this report. Because the focus on business-type activities is a cost of service measurement or capital maintenance,we have included an assessment of the capital asset balances for the business- type activities in Graph 10. - 14- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Financial Analysis of the Government's Funds As noted earlier,the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows,outflows,and balances of spendable resources. Such information is useful in assessing the City's financing requirements. Unassigned fund balance may serve as a useful measure of the City's net resources available for spending at year-end. The City's governmental funds reported a combined fund balance of$59.4 million which is$4.9 million higher than last year's total of$54.5 million. The schedule below indicates the fund balances as of December 31,2022 and 2021 for the governmental funds. Table 8 Fund Balances(In Millions) 12/31/22 12/31/21 Change Major funds: General $ 17.0 $ 20.7 $ (3.7) Community and economic development 2.5 1.7 0.8 Capital projects 9.6 9.0 0.6 Motor vehicle purchase 0.9 0.9 - Nonmajor governmental funds 29.4 22.2 7.2 Total $ 59.4 $ 54.5 $ 4.9 General Fund Fund balance of the general fund decreased$3.7 million from 2021 primarily due to rising inflation affecting the costs of goods and services utilized by the City.Income tax revenues increased due to more people returning to wark and the office resulting in more tax revenue for the City.General government expenditures increased as rising inflation caused an increase to normal goods and services purchased by the City to help operations.Expenditures of the general fund increased$6.0 million from 2021. Cominunity and Economic Development Fund Fund balance of the communiry and economic development fund increased$0.8 million from the prior year. Revenues and other financing sources decreased$0.3 million from$5.7 million in 2021 to$5.4 million in 2022 primarily due to decreased operating grants. Expenditures decreased $0.1 million from $4.8 million in 2021 to $4.7 million in 2022 due to decreased communiry environment projects. The community and economic development fund had $0.4 million in economic development loans receivable at December 31,2022. American Rescue Plan Act Fund The American Rescue Plan Act(ARPA) fund received $61.6 million in ARPA grant money from the federal government. The ARPA fund reported $13.4 million in recognized revenue in 2022 from the ARPA grant funds received. Expenditures were $14.4 million in 2022 as the City continued spending ARPA money. The remaining balance of grant money of$483 million is reported as unearned revenue and will be recognized as expenditures are incurred. Capital Projects Fund Fund balance of the capital projects fund increased $0.6 million from $9.0 million at December 31, 2021 to $9.6 million at December 31,2022. Revenues and other financing sources decreased$0.5 million from$12.1 million in 2021 to $ll.6 million in 2022. Expenditures increased$0.4 million from$10.6 million in 2021 to $11.0 million in 2022. Capital outlay expenditures increased as the City continued with projects that began in 2021. - 15 - CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Motor Vehicle Purchase Fund Fund balance of the motor vehicle purchase fund decreased less than$0.1 million. Revenues decreased$0.1 million from 2021 levels at$2.7 million. Expenditures decreased$0.1 million from$2.7 million in 2021 to$2.6 million in 2022 due to decreased capital purchases as a result of the Ciry purchasing fewer vehicles. Nonmajor Governmental Funds Fund balance of the nonmajor governmental funds increased$7.2 million from $222 million at December 31, 2021 to $29.4 million at December 31,2022. Revenues and other financing sources increased$7.1 million from$30.7 million in 2021 to$37.8 million in 2022 due to the City issuing $7.2 million in general obligation bonds in 2022. Expenditures increased$6.0 million from$24.5 million in 2021 to$30.5 million in 2022 due to an increase in transportation expenditures.Transportation expenditures increased due to the City resurfacing more roads and doing routine maintenance on infrastructure. General Fund Budgeting Highlights 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 Alternative Tax Budget, the Certificate of Estimated Resources and the Appropriarion Ordinance: all are prepared on the budgetary basis of accounting.The Certificate of Esrimated Resources and the Appropriations Ordinance are subject to amendment throughout the year with the legal restriction that appropriations cannot exceed esrimated resources, as cerrified. All funds, other than custodial funds, are legally required to be budgeted and appropriated. The legal level of budgetary control is at the account level split between salary and non-salary line items. Any budgetary modifications above account level may only be made by resolution of City Council. The City's fully automated financial system also maintains budgetary control through its requisition/purchase order/encumbrance feature.Department requisitions,which if processed,would result in an overrun of budget are placed into suspense and can only be authorized when additional appropriations are made available through Council ordinance or departmental transfer. The security of the financial system prohibits commitments in excess of appropriations. Requisitions not completed are removed at the close of each month. Requisitions meeting the required criteria are processed by the City Auditor resulting in the required purchase order. The purchase order provides for the reserved encumbrance against the current budget. The City Auditor continually monitors the encumbrances and expenditures against the budgeted appropriarions and against the County Auditor's Certificate of Estimated Resources. Using the budget prepared by the City the preceding July and including the carry over balances less carry over encumbrances at year-end, the County Auditor arrives at and issues the Certificate of Estimated Resources for the City. Ohio Law prohibits total fund appropriations from exceeding the amounts by fund on the County Auditar's certificate. The City's general fund had original estimated revenues and other financing sources and final estimated revenues and other financing sources of$75.4 million and $75.5 million. The actual revenue and other financing sources were less than final budgeted revenue and other financing sources by$0.8 million. The general fund variance from original budgeted expenditures and other financing uses to final budgeted expenditures and other financing uses was an increase of$10.2 million. The primary areas of increase were $1.3 million in general government. The final budgeted expenditures and other financing uses of$84.4 million exceeded actual expenditures and other financing uses of $80.7 million by$3.7 million.The actual expenditures and other financing uses of$80.7 million were approximately$6.5 million higher than the original budgeted expenditures and other financing uses. - 16- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Financial Analysis of the Proprietary Funds Proprietary Funds The City's proprietary funds provide the same type of informarion found in the government-wide financial statements for business-type activities,except in more detail. The only difference between the amounts reported as business-type activities and the amounts reported in the proprietary fund statements are interfund eliminations between proprietary funds and internal balances due to govemmental activities for internal service activities. The only interfund activity reported in the government wide statements are those between business-rype activities and governmental activities (reported as internal balances and transfers)whereas interfund amounts between various enterprise funds are reported in the proprietary fund statements. The water operating fund, the sewer operating fund, and the refuse operating fund had net position increases of$103 million, $9.1 million,and$21 million,respectively. The building code fund(a nonmajor enterprise fund)had a decrease in net position of$0.4 million. The water operating fund experienced an increase in operating revenue of 3.01%and the sewer operating fund experienced an increase in operating revenue of 44.13%, respectively from the prior year. The water operating fund had an increase in operaring expenses of 29.26% from the prior year while the sewer operaring fund had an increase in operating expenses of 11.26% from the prior year. The Refuse Fund's operating revenue increased 3.01% from 2021 while operating expenses increased 0.54%from 2021. These two factors caused the refuse operating fund to report an increase in net posirion of $2.1 million in 2022 as compared to an increase in net position of$2.1 million in 2021. The building code fund's (nonmajor enterprise fund)operating revenues decreased 12.37%from the prior year while operating expenses increased 107.71%from the prior year. These factors caused a decrease in net position of$0.4 million in 2022 as compared to an increase in net position of $1.4 million in 2021. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of 2022,the City had$421.4 million invested in a variety of capital assets,including police and fire equipment,land, buildings,park facilities,roads,bridges, intangible right to use assets, and water and sewer lines (see following graphs). This amount represents a net increase from prior year. Major additions for the governmental activities include both projects completed in 2022 and removed from construction in progress as well as projects that remain construction in progress at December 31,2022. These projects include ongoing major road and storm sewer projects,park equipment additions and renovations,and a major street lighting upgrade. Additions to Business-Type Activities included additional water and sewer line construction, the continuation of a major renovarion project at the City's Water Reclamation Plant,and ongoing restoration work at two of the Ciry's water plants. The City's 2022 capital budget anticipates a spending level of$2.8 million for capital projects. The City will continue to spend the balance remaining of the$3.4 million generated from the sale of general obligation bonds during 2006 to construct a scaled back version of a scaled back version of a community water park for the youth of the City. The water park plans have been greatly reduced since its inception in 2006. In fact, in 2009, 2010, and 20ll the City spent a portion of the unspent portion of the 2006 issuance, dedicated for both Mallonn Park and the water park, to retire the corresponding years principal and interest due on the aforementioned bonds. In early 2015,the City entered into contracts for a scaled down version of the water park.The prior portion of this issuance expended was used for constructing a fire station,additional building improvement and expansion to Ciry Hall,improve infrastructure and ciry parks expansion and developments. Mare detailed information about the City's capital assets is presented in Note 7 to the basic financial statements. - 17- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 The graph below reflects the City's governmental activities capital assets, net of accumulated depreciation, for December 31, 2022 and 2021: Graph 9 Governmental Capital Assets - Net of Depreciation (Dollar Value in Millions) 150 Zoi.S ioz.z ❑2021 100 ■2022 50 35.3 33.8 25.4 13.2 14.5 14.2 14.3 12.8 0 0.2 � Land Buildings Infrastructure Vehicles Intangible CIP right to use The graph below reflects the City's business-type activiries capital assets, net of accumulated depreciation, for December 31, 2022 and 2021: Graph 10 Business-Type Capital Assets - Net of Depreciation (Dollar Value in Millions) 150 105.1 92.� ❑2021 100 63.2 64.3 48.4 46.6 � ❑2�22 50 15.1 13.6 3.4 3.2 0.0 - � Land BuildingslnfrastructureVehid�wagible rightto us�IP - 18- CITY OF CANTON STARK COUNTY,OHIO MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31,2022 Debt At December 31,2022,the City had outstanding long-term debt obligations in the amount of$13.5 million up from$10.9 million in 2021 for the govemmental activities this represents a 23.85%increase. The City's business-type activities debt obligation as of December 31,2022 was$99.7 million which is an increase from$93.4 million in 2021. This represents an increase of 6.75%. The breakout on debt outstanding,by type,is presented in the table below. Graph 11 Total Debt Outstanding by Type (Dollar value in millions) szo soo so 60 40 20 o � � � Governmental 2022 Governmental 2021 Business-type 2022 Business-type 2021 ■Bonds ■Loans r Notes Financed purchase note payable ■Leases payable During 2022,the City issued$4.1 million in notes payable and retired$7.7 million in notes payable. The balance of the City's notes payable at December 31,2022 is$0.9 million.In 2022,the City issued$17.3 million in general obligation bonds. See Note 11 to the basic financial statements for mare information on the City's note and bond obligations. In 2022,no adjustments were made to the City's credit rating;however,in 2012 Moody's Investor Services confirmed the City's rating of A1 and changed its negative outlook to stable. In 2010, Moody's downgraded the City's rating to A1 from Aa3 and gave the City negative outlook on a general obligation bond issue. Fitch Rating service did not evaluate the City in 2013; however, Fitch had previously downgraded the Ciry from AA- to A+but said its outlook is stable. Other obligations include accrued vacation pay and sick leave. More detailed information about the City's long-term liabilities is presented in Note 9 to the basic financial statements. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens,taxpayers,customers,and investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial informarion,contact Richard A.Mallonn II-City Auditor,City of Canton,218 Cleveland Ave.,Canton, Ohio 44702. (Phone 330-489-3226 ar Fax 330-580-2067). - 19- THIS PAGE IS INTENTIONALLY LEFT BLANK -ao- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF NET POSITION DECEMBER 31,2022 Primary Government Component Units Governmental Business-type Board of Activities Activities Total CCIC Health Assets: Equity in pooled cash and cash equivalents $ 101,955,805 $ 60,112,529 $ 162,068,334 $ 305,085 $ - Cash with fiscal agents 3,019 - 3,019 - 5,874,509 Cash in segregated accounts - 490,167 490,167 - - Receivables: Income taxes 7,661,391 - 7,661,391 - - Properrytaxes 8,100,428 - 8,100,428 - - Accounts 5,776,654 9,291,82A 15,068,478 - 83,352 Accrued interest 408,973 35,473 444,446 - - Due from other governments 14,708,634 124,359 14,832,993 - 435,486 L,oansreceivable 12,769,234 - 12,769,234 - - L,ease receivable 642,319 246,303 888,622 - - Due from component units 199,799 - 199,799 - - Materials and suppliesinventory 413,995 2,806,438 3,220,433 - - Prepayments 805,599 243,929 1,049,528 - 57,017 NetOPEBasset 4,079,170 2,742,768 6,821,938 - 656,203 Netpension asset 618,801 416,072 1,034,873 - 99,545 Intemal balance 1,049,827 (1,049,827) - - - Real estate held for development - - - 978,098 - Capital assets: Land and constructionin progress 39,731,973 108,332,956 148,064,929 - - Depreciable capital assets,net 148,952,013 124,421,611 273,373,624 - 272,453 Total capital assets,net 188,683,986 232,754,567 421,438,553 - 272,453 Totalassets 347,877,634 308,214,602 656,092,236 1,283,183 7,478,565 Deferred outflows of resources: Pension 23,710,032 4,080,732 27,790,764 - 1,026,972 OPEB 5,758,770 126,755 5,885,525 - 37,282 Total deferred outflows of resources 29,468,802 4,207,487 33,676,289 - 1,064,254 Liabilities: Accounts payable 11,381,758 3,676,468 15,058,226 5,919 337,659 Contracts payable - 1,414,576 1,414,576 - - Accrued wagesand benefitspayable 1,779,662 540,345 2,320,007 - 123,460 Due to other governments 466,104 97,884 563,988 - 19,075 Due to primary government - - - - 199,799 Retainagepayable - 49Q167 490,167 - - Accrued interest payable 197,906 26,346 224,252 - 97 Note payable 3,050,000 - 3,050,000 - - Claims payable 2,388,877 - 2,388,877 - - Deposits held and due to others 188,448 - 188,448 - - Payroll withholding payable 1,081,025 247,558 1,328,583 - - Unearned revenue 48,255,377 - 48,255,377 - - Long-term liabilities: Due within one year 4,335,763 8,549,923 12,885,686 - 133,880 Due greater than one year: Net Pension Liability 67,894,967 7,644,277 75,539,244 - 1,828,881 Net OPEB Liability 9,917,277 - 9,917,277 - - Other amounts due in more than one year 17,171,744 91,172,207 108,343,951 - 411,209 Totalliabiliries 168,108,908 113,859,751 281,968,659 5,919 3,054,060 Deferred inflows of resources: Properry taxes levied for the next fiscal year 6,346,775 - 6,346,775 - - Leases 634,648 24Q869 875,517 Pension 33,302,371 9,638,206 42,940,577 - 2,276,929 OPEB 8,073,259 2,994,618 11,067,877 - 695,913 Total deferred inflows of resources 48,357,053 12,873,693 61,230,746 - 2,972,842 Net position: Net investment in capital assets 178,451,100 141,966,953 320,418,053 - 235,571 Restricted for: Community development programs 23,790,611 - 23,790,611 - - Street construction,maintenance,and repair 2,012,106 - 2,012,106 - - Public health service programs - - - - 4,809,006 Saf'ety and security programs and supplies 577,288 - 577,288 - - Court programs 2,548,623 - 2,548,623 - - Other purposes 3,296,633 - 3,296,633 - - Ciry owned parking decks 389,660 - 389,660 - - Debtservice 119,175 - 119,175 - - Capital projects 1,764,594 - 1,764,594 - - Unrestricted(deficit) (52,069,315) 43,721,692 (8,347,623) 1,277,264 (2,528,660) Total net position(deficit) $ 160,880,475 $ 185,688,645 $ 346,569,120 $ 1,277,264 $ 2,515,917 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -21- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2022 Program Revenues Charges for Operating Grants Capital Grants Expenses Services and Sales and Contributions and Contributions Primary Government: Governmental activities: General government $ 40,714,866 $ 8,801,811 $ 10,459,511 $ - Security of persons and property 44,618,910 4,903,455 2,549,529 - Transportation 13,551,460 53,538 3,480,261 2,000,615 Community environment 9,865,516 - 6,331,486 - Leisure time activities 9,510,403 405,658 3,157,255 - Interest and fiscal charges 170,842 - 4,817 - Total governmental acrivities 118,431,997 14,164,462 25,982,859 2,000,615 Business-type activities: Water 16,894,983 21,619,262 - 4,945,591 Sewer 16,000,819 24,757,953 - - Refuse 6,679,839 8,489,066 38,957 - Building Code 2,872,417 2,394,724 - 4,994 Totalbusiness-type activities 42,448,058 57,261,005 38,957 4,950,585 Total primary government $ 160,880,055 $ 71,425,467 $ 26,021,816 $ 6,951,200 Component Units: CCIC $ 360,911 $ 5,807 $ 487,166 $ - Board of Health 6,415,865 1,323,878 6,672,961 8,500 Totalcomponentunits $ 6,776,776 $ 1,329,685 $ 7,160,127 $ 8,500 General revenues: Municipal income taxes levied for: General purposes Community development Capital outlay Property and other taxes Other local taxes Payments in lieu of taxes Grants and enritlements not restricted to specific programs Interest and investment earnings Decrease in fair value of investments Gain on sale of capital assets Miscellaneous Total general revenues Change in net posirion Net position at beginning of year Net position at end of year SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -22- Net(Expense)Revenue and Changes in Net Position Primary Government Component Units Governmental Business-type Board of Activities Activities Total CCIC Health $ (21,453,544) $ - $ (21,453,544) $ - $ - (37,165,926) - (37,165,926) - - (8,017,046) - (8,017,046) - - (3,534,030) - (3,534,030) - - (5,947,490) - (5,947,490) - - (166,025) - (166,025) - - (76,284,061) - (76,284,061) - - - 9,669,870 9,669,870 - - - 8,757,134 8,757,134 - - - 1,848,184 1,848,184 - - - (472,699) (472,699) - - - 19,802,489 19,802,489 - - (76,284,061) 19,802,489 (56,481,572) - - - - - 132,062 - - - - - 1,589,474 - - - 132,062 1,589,474 50,271,705 - 50,271,705 - - 9,030,778 - 9,030,778 - - 14,191,222 - 14,191,222 - - 6,541,558 - 6,541,558 - - 980,112 - 980,112 - - 1,605,218 - 1,605,218 - - 7,708,553 - 7,708,553 - - 1,285,517 95,758 1,381,275 - - (4,103,710) - (4,103,710) - - 7,346,788 297,715 7,644,503 492 43,560 94,857,741 393,473 95,251,214 492 43,560 18,573,680 20,195,962 38,769,642 132,554 1,633,034 142,306,795 165,492,683 307,799,478 1,144,710 882,883 $ 160,880,475 $ 185,688,645 $ 346,569,120 $ 1,277,264 $ 2,515,917 -23- CITY OF CANTON STARK COUNTY,OHIO BALANCESHEET GOVERNMENTALFUNDS DECEMBER 31,2022 Community American and Economic Rescue Capital General Development Plan Act Projects Assets: Equity in pooled cash and cash equivalents $ 9,457,580 $ 2,212,871 $ 50,261,369 $ 9,310,453 Cash with fiscal agent - - - - Receivables: Accounts 3,286,230 393,978 - 600 Accrued interest 393,303 - - - Municipal income taxes 4,903,290 - - 1,379,050 Property and other taxes 3,512,407 - - - Due from other funds 2,438,225 - - - Due from other governments 3,813,459 7,856,000 - 6,440 Loans receivable 963,931 360,192 - - Lease receivable - - - - Due from component units 79,160 - - - Advances to other funds 4,300,000 - - - Materials and supplies inventory 383,957 - - - Prepayments 622,185 584 - 31,700 Total assets $ 34,153,727 $ 10,823,625 $ 50,261,369 $ 10,728,243 Liabilities: Accounts payable $ 1,804,373 $ 527,981 $ 2,005,992 $ 766,342 Accrued wages and benefits payable 1,465,472 - - 63,364 Due to other funds 93,218 157,674 - 1,831 Due to other governments 376,063 - - 10,397 Note payable 3,050,000 - - - Accrued interest payable 137,877 - - - Unearned revenue - - 48,255,377 - Deposits held and due to others - - - - Payroll withholding payable 933,580 - - 28,533 Totalliabilities 7,860,583 685,655 50,261,369 870,467 Deferred intlows of resources: Property taxes levied for the next fiscal year 2,716,346 - - - Delinquent property tax revenue not available 796,061 - - - Accrued interest not available 171,463 - - - Leases - - - - Miscellaneous revenue not available 399,006 - - - Income tax revenue not available 902,336 - - 253,782 Charges for services revenue not available 2,444,901 289,393 - - Intergovernmental revenue not available 1,834,647 7,368,941 - - Total deferred inflows of resources 9,264,760 7,658,334 - 253,782 Fund balances: Nonspendable 5,503,210 584 - 31,700 Restricted - 2,479,052 - - Committed 921,504 - - 9,572,294 Assigned 4,697,869 - - - Unassigned(deficit) 5,905,801 - - - Total fund balances 17,028,384 2,479,636 - 9,603,994 Total liabilities,deferred inflows of resources and fund balances $ 34,153,727 $ 10,823,625 $ 50,261,369 $ 10,728,243 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -24- Motor Nonmajor Total Vehicle Governmental Governmental Purchase Funds Funds $ 1,195,272 $ 24,953,840 $ 97,391,385 - 3,019 3,019 - 743,397 4,424,205 - 15,670 408,973 306,456 1,072,595 7,661,391 - 4,588,021 8,100,428 - - 2,438,225 - 3,003,974 14,679,873 - 11,445,ll1 12,769,234 - 642,319 642,319 - - 79,160 - - 4,300,000 - 30,038 413,995 - 73,517 727,986 $ 1,501,728 $ 46,571,501 $ 154,040,193 $ 591,739 $ 3,184,590 $ 8,881,017 - 167,976 1,696,812 - 6,583,239 6,835,962 - 66,483 452,943 - - 3,050,000 - - 137,877 - - 48,255,377 - 188,448 188,448 - 67,522 1,029,635 591,739 10,258,258 70,528,071 - 3,630,429 6,346,775 - 957,592 1,753,653 - - 171,463 - 634,648 634,648 - 114,517 513,523 56,396 197,386 1,409,900 - 258,095 2,992,389 - 1,070,547 10,274,135 56,396 6,863,214 24,096,486 - 103,555 5,639,049 853,593 27,095,998 30,428,643 - 3,958,714 14,452,512 - - 4,697,869 - (1,708,238) 4,197,563 853,593 29,450,029 59,415,636 $ 1,501,728 $ 46,571,501 $ 154,040,193 -25- CITY OF CANTON STARK COUNTY,OHIO RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31,2022 Total governmental fund balances $ 59,415,636 Amounts reported for governmental activities on the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefare are not reported in the funds. 188,683,986 Other long-term assets are not available to pay for current- period expenditures and therefore are deferred inflows in the funds. Delinquent properry taxes receivable $ 1,753,653 Income taxes receivable 1,409,900 Accounts receivable 3,505,912 Intergovernmental receivable 10,274,135 Accrued interest receivable 171,463 Total 17,115,063 An internal service fund is used by management to charge the costs of insurance to individual funds The assets and liabilities of the internal service fund,including an internal balance of$1,039,282, are included in governmental activities on the statement of net position. (5,707,488) Accrued interest payable is not due and payable in the current period and therefore is not reported in the funds. (60,029) The net pension asset/liabiliry is not due and receivable/payable in the current period;therefare,the asset,liability and related deferred inflows/ outflows are not reported in the governmental funds: Deferred outflows of resources-pension 23,710,032 Deferred inflows of resources-pension (33,302,371) Net pension asset 618,801 Net pension liability (67,894,967) Total (76,868,505) The net OPEB asset/liability is not due and receivable/payable in the current period;therefore,the asset,liability and related deferred inflows/ outflows are not reported in the governmental funds: Deferred outflows of resources-OPEB 5,758,770 Deferred inflows of resources-OPEB (8,073,259) Net OPEB asset 4,079,170 Net OPEB liability (9,917,277) Total (8,152,596) Long-tertn liabilities,including loans and notes payable and capital lease obligations,are not due and payable in the current period and therefore are not reported in the funds. General obligation bonds (7,249,186) Loans payable (4,119,275) Notes payable (900,000) Lease payable (179,570) Financed purchase note payable (1,097,561) Total (13,545,592) Net position of governmental activities $ 160,880,475 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -26- THIS PAGE IS INTENTIONALLY LEFT BLANK -2�- CTTY OF CANTON STARK COUNTY,OHIO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Community American and Economic Rescue Capital General Development Plan Act Projects Revenues: Property and other taxes $ 2,673,150 $ - $ - $ - Municipal income taxes 50,020,498 - - 11,540,348 Charges for services 9,891,516 - - - Licenses,permits,and fees 737,869 - - - Fines and farfeitures ll 3,752 - - 200 Intergovernmental 7,498,596 - 13,368,965 - Interest and investment income 1,153,607 1,131,250 - - Rental income 3,940 - - - Contributions and donations 3,640 - - - Operating grants 197,758 4,044,830 - - Capital grants - - - 6,440 Payment in lieu of taxes - - - - Other local taxes - - - - Decrease in fair value of investments (4,103,710) - - - Other 3,286,772 242,375 1,001,141 23,187 Totalrevenues 71,477,388 5,418,455 14,370,106 11,570,175 Expenditures: Current General government 28,636,927 - 9,342,552 - Security ofpersons andproperty 39,351,009 - 385,279 - Transportation 2,486,140 - - 5,475 Community environment 3,515,260 4,650,756 1,836,992 - Leisure rime activiries 126,735 - 2,805,283 - Capital outlay - - - 10,092,947 Debt service: Principal retirement 1,211,927 2,353 - 767,836 Interest and fiscal charges 63,055 782 - 108,216 Bond issuance costs - - - - Total expenditures 75,391,053 4,653,891 14,370,106 10,974,474 Excess(deficiency)ofrevenues over(under)expenditures (3,913,665) 764,564 - 595,701 Other financing sources(uses): Bond issuance - - - - Issuance of notes 900,000 - - - Lease transacrion - - - - Transfers in - - - - Transfers(out) (648,846) - - - Total other financing sources(uses) 251,154 - - - Net change in fund balances (3,662,Sll) 764,564 - 595,701 Fund balances at beginning of year 20,690,895 1,715,072 - 9,008,293 Fund balances at end of year $ 17,028,384 $ 2,479,636 $ - $ 9,603,994 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -28- Motor Other Total Vehicle Governmental Governmental Purchase Funds Funds $ - $ 3,796,393 $ 6,469,543 2,564,522 8,975,827 73,101,195 - 2,567,721 12,459,237 - - 737,869 - 319,098 433,050 - 4,433,096 25,300,657 - 84,349 2,369,206 - 240,627 244,567 - 609,951 613,591 - 945,356 5,187,944 - 1,756,228 1,762,668 - 1,605,218 1,605,218 - 871,831 871,831 - - (4,103,710) 26,164 756,218 5,335,857 2,590,686 26,961,913 132,388,723 - 4,222,625 42,202,104 - 2,881,113 42,617,401 - 6,530,598 9,022,213 - - 10,003,008 - 6,229,448 9,161,466 2,195,988 3,994,211 16,283,146 395,608 6,515,742 8,893,466 34,431 58,567 265,051 - 49,186 49,186 2,626,027 30,481,490 138,497,041 (35,341) (3,519,577) (6,108,318) - 7,249,186 7,249,186 - 3,200,000 4,100,000 - 145,379 145,379 - 223,846 223,846 - - (648,846) - 10,818,411 11,069,565 (35,341) 7,298,834 4,961,247 888,934 22,151,195 54,454,389 $ 853,593 $ 29,450,029 $ 59,415,636 -29- CITY OF CANTON STARK COUNTY,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 $ 4,961,247 Amounts reported for governmental acrivities in the statement ofactivities are different because: Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those assets are allocated over their estimated useful lives as depreciation/amortization expense. This is the amount by which capital outlays exceeds depreciation/amortization expense in the current period. Capital asset additions $ 20,755,622 Current yeaz depreciarion/amortization (10,851,106) Total 9,904,516 Revenues in the statement of acrivities that do not provide current financial resources are not reported as revenues in the governmental funds. Property and other taxes 72,015 Municipal income taxes 392,510 Intergovernmental revenue 337,963 Operating grants (790,129) Charges for services 301,844 Interest 131,910 Total 446,ll 3 The issuance of bonds,lease payables,and notes are reported as an other financing source in the governmental funds,however,in the statement of activities,they are not reported as revenues as they increase the liabilities on the statement of net posirion. (11,494,565) Repayment of note,loan,and capital lease principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities on the statement of net position. 8,893,466 In the statement of activities,interest is accrued on outstanding bonds and loans, whereas in governmental funds,an interest expenditure is reported when due. 143,395 Contractually required pension/OPEB contributions are reported as expenditures in governmental funds;however,the statement of net position reports these amounts as deferred outflows. Pension 7,669,907 OPEB 141,380 Total 7,811,287 Except for amounts reported as deferred inflows/outflows,changes in the net pension asset/liability and net OPEB liability are reported as pension/OPEB expense in the statement of activities. Pension (1,758,940) OPEB 2,176,689 Total 417,749 Internal service funds are used by management to charge the costs of certain activities,such as insurance,to individual funds.The net revenue(expense) of the internal service funds,including an internal balance activity of$934,491, is reported with the governmental activities on the govrenment-wide statement of net position. (2,509,528) Change in net position of governmental activities $ 18,573,680 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -30- CITY OF CANTON STARK COUNTY,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 Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Revenues: Property and other taxes $ 2,281,000 $ 2,281,000 $ 2,673,150 $ 392,150 Municipal income taxes 38,875,000 38,875,000 41,997,589 3,122,589 Charges for services 7,378,000 7,378,000 7,253,878 (124,122) Licenses,permits,and fees 791,000 791,000 756,840 (34,160) Fines and forfeitures 136,750 136,750 109,305 (27,445) Intergovernmental 6,651,750 6,651,750 7,503,417 851,667 Interest and investment income 617,500 617,500 827,257 209,757 Rental income 48,000 48,000 3,940 (44,060) Operating grants 303,000 303,000 198,310 (104,690) Contributions and donations 2,500 2,500 3,640 1,140 Other 11,972,750 12,022,216 7,917,710 (4,104,506) Totalrevenues 69,057,250 69,106,716 69,245,036 138,320 Expenditures: Current: General government: Service director support administration 1,257,500 4,466,7ll 4,265,960 200,751 Service director 75,853 75,544 63,512 12,032 Purchase administration 543,644 572,674 523,318 49,356 Annexation ll,300 ll,300 394 10,906 Building and maintenance 1,841,555 2,125,192 1,998,323 126,869 Mayor administration 499,344 495,246 414,894 80,352 Planning 262,190 254,040 248,705 5,335 Human resources 200,539 181,998 128,472 53,526 Council 694,830 717,136 692,191 24,945 Judges 2,657,385 2,482,390 2,291,610 190,780 Clerk of Courts 1,930,150 1,838,850 1,764,911 73,939 Law department 2,003,773 2,006,313 1,763,444 242,869 Auditor's office 2,029,875 2,099,470 1,985,413 114,057 Treasurer's office 720,320 904,417 864,080 40,337 Civil service 530,247 530,863 471,832 59,031 Canton helping Canton - 2,500 1,947 553 Management information systems 1,584,310 1,581,686 1,551,860 29,826 Total general government 16,842,815 20,346,330 19,030,866 1,315,464 Security of persons and property: Safety director 228,317 218,317 203,908 14,409 Code enforcement 180,000 180,000 125,199 54,801 Schoolpolice administration 130,405 57,405 43,214 14,191 Central communication 1,921,610 1,941,545 1,912,127 29,418 Police 19,252,035 20,152,631 19,676,185 476,446 Fire 17,764,900 19,531,197 19,308,732 222,465 Traffic engineer/parking meters 30,000 30,000 6,950 23,050 Total security of persons and property 39,507,267 42,111,095 41,276,315 834,780 (Continued) -31 - CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERAL FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Transportation: Engineering-daily operations 98,159 636,942 555,558 81,384 Street department 1,914,839 2,094,838 2,023,414 71,424 Salt storage facility - 500,000 477,906 22,094 Total transportation 2,012,998 3,231,780 3,056,878 174,902 Community environment: Community development administration 1,525,840 1,386,302 1,319,637 66,665 Community involvement 2,021,585 2,080,727 2,053,562 27,165 Community Improvement Corporation 50,000 50,000 50,000 - Total community environment 3,597,425 3,517,029 3,423,199 93,830 Leisure time activities: Baseball 2,156,386 2,653,214 2,649,589 3,625 Civic Center administration 590,000 678,301 673,302 4,999 Total leisure time activities 2,746,386 3,331,515 3,322,891 8,624 Debt service: Principal retirement 5,980,575 5,979,242 5,280,648 698,594 Interest and fiscal charges 188,225 300,678 108,872 191,806 Total debt service 6,168,800 6,279,920 5,389,520 890,400 Total expenditures 70,875,691 78,817,669 75,499,669 3,318,000 Exccss of expenditures over revenues (1,818,441) (9,710,953) (6,254,633) 3,456,320 Other financing sources(uses): Issuance of notes 4,645,000 4,645,000 3,950,000 (695,000) Transfers in 652,600 652,600 642,600 (10,000) Transfers(out) (3,172,600) (3,616,446) (3,241,446) 375,000 Advances in 1,050,000 1,050,000 721,964 (328,036) Advances(out) (140,000) (1,978,731) (1,978,731) - Sale of assets - - 69,483 69,483 Total other financing sources(uses) 3,035,000 752,423 163,870 (588,553) Net change in fund balance 1,216,559 (8,958,530) (6,090,763) 2,867,767 Fund balance at beginning of year 3,531,492 3,531,492 3,531,492 - Prior year encumbrances appropriated 7,868,342 7,868,342 7,868,342 - Fund balance at end of year $ 12,616,393 $ 2,441,304 $ 5,309,071 $ 2,867,767 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -32- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COMMUNITY AND ECONOMIC DEVELOPMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Revenues: Operating grants $ 11,453,968 $ 17,915,445 $ 4,169,581 $ (13,745,864) Other 171,000 175,345 2,113,292 1,937,947 Total revenues 11,624,968 18,090,790 6,282,873 (11,807,917) Expenditures: Current: Community environment: Community development administration 5,315,121 13,400,128 5,466,992 7,933,136 Federal stimulus funding 3,336,052 4,348,010 1,273,119 3,074,891 Community development demolition - - - - Fair housing administration 9,551 88,569 75,034 13,535 Vienna Woods 230,026 255,025 24,999 230,026 Total community environment 8,890,750 18,091,732 6,840,144 ll,251,588 Debt service: Principal retirement - 3,000 2,542 458 Interest and fiscal charges - 714 593 121 Total debt service - 3,714 3,135 579 Total expenditures 8,890,750 18,095,446 6,843,279 11,252,167 Excess(deficiency)of revenues over(under)expenditures 2,734,218 (4,656) (560,406) (555,750) Other financing sources: Advancesin - - 100,000 100,000 Advances(out) - (102,300) (103,100) (800) Total other financing sources - (102,300) (3,100) 99,200 Net change in fund balance 2,734,218 (106,956) (563,506) (456,550) Fund balance(deficit)at beginning of year (2,480,149) (2,480,149) (2,480,149) - Prior year encumbrances appropriated 3,035,030 3,035,030 3,035,030 - Fund balance(deficit)at end of year $ 3,289,099 $ 447,925 $ (8,625) $ (456,550) SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -33- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) AMERICAN RESCUE PLAN ACT FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 31,806,6ll $ 31,806,6ll $ 31,806,6ll $ - Other - - 1,001,141 1,001,141 Total revenues 31,806,611 31,806,611 32,807,752 1,001,141 Expenditures: Current: General government: Support administration - 28,251,770 16,419,994 11,831,776 Invest health medicaUfood project - 1,300,000 1,300,000 - Storm sewer projects - 153,000 152,550 450 COVID-19 Stimulus 51,339,702 23,996,726 7,463,910 16,532,816 Total general government 51,339,702 53,701,496 25,336,454 28,365,042 Security of persons and property: COVID-19 Stimulus - 5,295,768 5,214,029 81,739 Leisure time activities: Park - 2,796,078 2,796,078 - Total expenditures 51,339,702 61,793,342 33,346,561 28,446,781 Net change in fund balance (19,533,091) (29,986,731) (538,809) 29,447,922 Fund balance at beginning of year 19,533,090 19,533,090 19,533,090 - Prior year encumbrances appropriated 10,453,641 10,453,641 10,453,641 - Fund balance at end of year $ 10,453,640 $ - $ 29,447,922 $ 29,447,922 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -34- THIS PAGE IS INTENTIONALLY LEFT BLANK -35- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31,2022 Business-type Activities-Enterprise Funds Water Sewer Refuse Nonmajor Operating Operating Operating Enterprise Fund Fund Fund Fund Assets: Current assets: Equityin pooled cash and cash equivalents $ 22,640,223 $ 23,149,575 $ 12,823,961 $ 1,498,770 Cash in segregated accounts - 490,167 - - Receivables: Accounts 3,627,795 3,493,675 2,155,854 14,500 Accrued interest 644 - 34,829 - Due from other funds - - - - Due from other governments 79,759 35,346 9,254 - Leases receivable 246,303 - - - Due from component unit - - - - Materials and supplies inventory 867,686 1,938,752 - - Prepayments 175,555 - 50,638 17,736 Total current assets 27,637,965 29,107,515 15,074,536 1,531,006 Non-current assets: Netpensionasset 158,116 141,553 86,213 30,190 Net OPEB asset 1,042,308 933,124 568,323 199,013 Capital assets: Land and construction in progress 18,880,522 88,827,461 624,973 - Depreciable capital assets,net 81,676,581 40,384,086 1,765,806 595,138 Total capital assets,net 100,557,103 129,211,547 2,390,779 595,138 Total noncurrent assets 101,757,527 130,286,224 3,045,315 824,341 Total assets 129,395,492 159,393,739 18,119,851 2,355,347 Deferred outtlows of resources: Pension 1,496,024 1,439,525 850,900 294,283 OPEB 40,654 50,154 26,998 8,949 Total deferred outflows of resources 1,536,678 1,489,679 877,898 303,232 Liabilifies: Current liabilities: Accountspayable 3,096,614 269,665 236,380 73,809 Contracts payable - 1,414,576 - - Retainage payable - 490,167 - - Accrued wages and benefits payable 210,199 177,729 113,885 38,532 Due to other funds 4,027 1,209 1,839 3,470 Due to other governments 45,126 27,795 17,595 7,368 Accrued interest payable - - 26,346 - Payroll withholding payable 93,481 81,394 54,215 18,468 General obligation bonds payable - - 535,807 - OWDA loans payable 1,859,285 5,587,054 - - OPWC loans payable 415,424 5,764 - - Compensated absences payable-current - - - - Claim payable - - - - Financed purchase note payable - - 142,764 - L,ease payable - - - 3,825 Totalcurrentliabilities 5,724,156 8,055,353 1,128,831 145,472 Non-current liabilities: General obligation bonds payable - - 9,532,507 - OWDA loans payable 21,268,652 56,286,681 - - OPWC loans payable 3,452,852 7,668 - - Financed purchase note payable - - 613,537 - Lease payable - - - 10,310 Compensated absences payable - - - - Claims payable - - - - Net Pension Liability 2,904,982 2,600,678 1,583,954 554,663 Total non-current liabilities 27,626,486 58,895,027 11,729,998 564,973 Totalliabilities 33,350,642 66,950,380 12,858,829 710,445 Deferred inflows of resources: Leases 240,869 - - - Pension 3,667,019 3,266,541 2,003,072 701,574 OPEB 1,140,952 1,010,009 624,769 218,888 Total deferred inflows of resources 5,048,840 4,276,550 2,627,841 920,462 Net posifion: Netinvestmentin capitalassets 73,560,890 65,909,804 1,915,256 581,003 Unresh-icted(deficit) 18,971,798 23,746,684 1,595,823 446,669 Total net position(deficit) $ 92,532,688 $ 89,656,488 $ 3,511,079 $ 1,027,672 Adjustment to reflect the consolidation of the iuternal service funds activities related to enterprise funds. Net positiou of business-type activities SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -36- Governmental Activifies- Internal Total Service Funds $ 60,112,529 $ 4,564,420 490,167 - 9,291,824 1,352,449 35,473 - - 108,282 124,359 28,761 246,303 - - 120,639 2,806,438 - 243,929 77,613 73,351,022 6,252,164 416,072 - 2,742,768 - 108,332,956 - 124,421,611 - 232,754,567 - 235,913,407 - 309,264,429 6,252,164 4,080,732 - 126,755 - 4,207,487 - 3,676,468 2,500,741 1,414,576 - 490,167 - 540,345 82,850 I 0,545 - 97,884 13,161 26,346 - 247,558 51,390 535,R07 - 7,446,339 - 421,188 - - 1,824,805 - 1,224,706 142,764 - 3,825 - 15,053,812 5,697,653 9,532,507 - 77,555,333 - 3,460,520 - 613,537 - 10,310 - - 6,137,110 - 1,164,171 7,644,277 - 98,816,484 7,301,281 113,870,296 12,998,934 240,869 - 9,638,206 - 2,994,618 - 12,873,693 - 141,966,953 - 44,760,974 (6,746,770) 186,727,927 $ (6,746,770) (1,039,282) $ 185,688,645 -37- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Business-type Activities-Enterprise Funds Water Sewer Refuse Nonmajor Operating Operating Operating Enterprise Fund Fund Fund Fund Operating revenues: Charges for services $ 21,589,271 $ 24,734,480 $ 8,489,066 $ 2,394,724 Rental income 29,991 23,473 - - Other operating revenues 210,084 38,185 2,173 47,273 Total operating revenues 21,829,346 24,796,138 8,491,239 2,441,997 Operating expenses: Personal services 5,394,397 4,978,797 3,177,657 1,036,504 Contract services 3,449,626 S,011,652 2,185,575 1,503,819 Materials and supplies 2,776,176 1,345,3ll 422,795 45,267 Benefit claim expenses - - - - Insurance claims and expenses 194,034 6,431 2,823 150,668 Depreciation 3,917,144 2,151,539 361,063 68,681 Other 129,825 84,923 26,900 - Total operating expenses 15,861,202 13,578,653 6,176,813 2,804,939 Operating income(loss) 5,968,144 11,217,485 2,314,426 (362,942) Nonoperating revenues(expenses): Interest and fiscal charges (612,690) (2,041,741) (290,022) (840) Loss on sale of capital assets (57,566) (73,055) (16,046) - Interest income 8,072 - 87,686 - Operating grants - - 38,957 - Totalnonoperatingrevenues(expenses) (662,184) (2,114,796) (179,425) (840) Income(loss)before contributions 5,305,960 9,102,689 2,135,001 (363,782) Transfer in - - - - Capital contributions 4,945,591 - - 4,994 Changeinnetposition 10,251,551 9,102,689 2,135,001 (358,788) Net position(deficit) atbeginning ofyear 82,281,137 80,553,799 1,376,078 1,386,460 Net position(deficit)at end of year $ 92,532,688 $ 89,656,488 $ 3,511,079 $ 1,027,672 Adjushnent to reflect the consolidation of internal service funds activities related to enterprise funds. Change in net position of business-type activities. SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -38- Governmental Activities- Internal Total Service Funds $ 57,207,541 $ 17,664,793 53,464 - 297,715 4,ll1,682 57,558,720 21,776,475 14,587,355 2,331,880 12,150,672 1,259,125 4,589,549 - - 4,136,366 353,956 17,915,123 6,498,427 - 241,648 3,000 38,421,607 25,645,494 19,137,113 (3,869,019) (2,945,293) - (146,667) - 95,758 - 38,957 - (2,957,245) - i6,i�9,a6a �3,s69,oi9> - 425,000 4,950,585 - 21,130,453 (3,444,019) (3,302,751) $ (6,746,770) (934,491) $ 20,195,962 -39- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Business-type Activities-Enterprise Funds Water Sewer Refuse Nonmajor Operating Operating Operating Enterprise Fund Fund Fund Fund Cash flows from operating activities: Cash received from charges for services $ 21,264,405 $ 24,267,463 $ 8,481,508 $ 2,394,497 Cash received from rents 24,618 23,356 - - Cash received from other operations 212,749 37,939 2,173 36,865 Cash payments for personal services (7,592,090) (6,729,907) (4,303,856) (1,469,919) Cash payments for contractual services (2,543,627) (5,619,500) (2,352,005) (1,537,697) Cash payments for materials and supplies (2,027,681) (1,450,796) (386,225) (45,572) Cash payments for claims (194,034) (6,431) (2,823) (150,668) Cash payments for insurance claims - - - - Cash payments for benefits claims - - - - Cash payments for other expenses (47,273) (99,001) (24,833) (2,100) Net cash provided by(used in)operating activities 9,097,067 10,423,123 1,413,939 (774,594) Cash flows from noncapital financing activities: Cash received from operating grants - - 40,755 - Cash received from transfers in - - - - Net cash provided by noncapital financing activities - - 40,755 - Cash flows from capital and related financing activities: Acquisition of capital assets (ll,765,719) (2,594,413) (742,768) (40,627) Capital contributions 5,015,881 - - 4,994 Proceeds from sale of capital assets 39,375 - 37,500 - Proceeds of bonds - - 10,068,314 - Proceeds of loans 2,288,519 9,385 - - Interest paid on bonds - - (169,489) - Bond issue costs - - (68,314) - Principal paid on financed purchase note payable - - (138,754) - Interest paid on financed purchase note payable - - (25,873) - Principal paid on lease payable - - - (3,372) Interest paid on lease payable - - - (840) Principal paid on OPWC loans (350,033) (8,461) - - Principal paid on OWDA loans (2,058,903) (3,596,525) - - Interest paid on OWDA loans (612,690) (2,041,741) - - Net cash provided by(used in)capital and related financing activities (7,443,570) (8,231,755) 8,960,616 (39,845) Cash flows from investing activities: Interest received 7,428 - 52,857 - Net cash provided by investing activities 7,428 - 52,857 - Net increase(decrease)in cash and cash equivalents 1,660,925 2,191,368 10,468,167 (814,439) Cash and cash equivalents at beginning of year 20,979,298 21,448,374 2,355,794 2,313,209 Cash and cash equivalents at end of year $ 22,640,223 $ 23,639,742 $ 12,823,961 $ 1,498,770 -40- Governmental Activities- Internal Total Service Funds $ 56,407,873 $ 17,664,793 47,974 - 289,726 3,163,743 (20,095,772) (280,814) �iz,osa,8z9� �i,zs9,izs� (3,910,274) - (353,956) - - (17,754,686) - (4,503,998) (173,207) (3,000) 20,159,535 (2,973,087) 40,755 - - 425,000 40,755 425,000 (15,143,527) - 5,020,875 - 76,875 - 10,068,314 - 2,297,904 - (169,489) - (68,314) - (138,754) - (25,873) - (3,372) - (840) - (358,494) - (5,655,428) - (2,654,431) - (6,754,554) - 60,285 _ 60,285 - i3,so6,oai �a,s4s,oa�> 47,096,675 7,ll2,507 $ 60,602,696 $ 4,564,420 -(Continued) -41 - CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Business-type Activities-Enterprise Funds Water Sewer Refuse Nonmajor Operating Operating Operating Enterprise Fund Fund Fund Fund Reconciliation of operating income(loss)to net cash provided by(used in)operating activities: Operating income(loss) $ 5,968,144 $ 11,217,485 $ 2,314,426 $ (362,942) Adjustments: Depreciation 3,917,144 2,151,539 361,063 68,681 Changes in assets and liabilities: (Increase)decrease in accounts receivable (322,140) (467,380) (7,558) (10,635) (Increase)decrease in materials and supplies inventory 160,816 (301,086) - - (Increase)decrease in prepayments (83,791) 79,356 (987) (208) Decrease in due from other funds - - - - (Increase)in due from other governments - - - - (Increase)in due from component units - - - - Increase(decrease)in accounts payable 1,581,271 (425,453) (128,199) (34,814) Increase(decrease)in accrued wages and benefits 18,461 S,ll2 (7,919) 2,796 Increase(decrease)in due to other funds (2,307) (104) 1,023 (1,225) (Decrease)in due to other governments (2,188) (82) (1,224) (2,322) Increase(decrease)in payroll withholding payable 2,123 2,235 (186) 1,285 Decrease in lease receivable 24,060 - - - (Decrease)in deferred inflow-leases (29,494) - - - (Increase)in net pension asset (54,725) (51,702) (30,790) (10,683) (Increase)in net OPEB asset (486,415) (450,032) (270,336) (94,130) (Increase)in deferred outflows of resources-pension (760,166) (819,766) (433,626) (159,728) Decrease in deferred outflows of resources-OPEB 269,405 204,397 154,056 43,837 Increase in deferred inflows of resources-pension 1,346,963 1,286,697 746,021 246,266 (Decrease)in deferred inflows of resources-OPEB (724,105) (584,281) (383,340) (141,685) (Decrease)in netpension liability (1,725,989) (1,423,812) (898,485) (319,087) (Decrease)in compensated absences payable - - - - Increase in claims payable - - - - Net cash providedby(used in)operating activities $ 9,097,067 $ 10,423,123 $ 1,413,939 $ (774,594) Non-Cash Transactions: As of December 31,2022,the water operating fund,sewer operating fund,refuse operating fund,and nonmajor enterprise fund had purchased$972,658,$1,904,743,$102,031 and$13,393,in capital assets on account,respectively. As of December 31,2021,the water operating fund,sewer operating fund,and nonmajor enterprise fund had purchased$719,880, $484,941,and$30,010,in capital assets on account,respectively. During 2022,the Water fund and Sewer fund reported a$79,759 and$35,346 receivable,respectively,for OWDA loan proceeds disbursed by OWDA,but not received by the City by year-end. SEE ACCOMPANYING NOTES TO THE BAS1C FINANCIAL STATEMENTS -42- Governmental Activities- Internal Total Service Funds $ 19,137,113 $ (3,869,019) 6,498,427 - (807,713) (943,947) (140,270) - (5,630) (3,320) - 19,837 - (927) - (6,193) 992,805 2,056,325 18,450 (51,976) (2,613) - (5,816) (7,669) 5,457 (2,198) 24,060 - (29,494) - (147,900) - (1,300,913) - (2,173,286) - 671,695 - 3,625,947 - (1,833,411) - (4,367,373) - - (330,630) - 166,630 � zo,is9,s3s � (2,9�3,og�� -43- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS DECEMBER 31,2022 Private-Purpose Trust Custodial Assets: Equity in pooled cash and cash equivalents $ - $ 47,779 Cash and cash equivalents in segregated accounts 34,391 117,732 Investments in segregated accounts 132,095 - Receivables(net of allowances far uncollectibles): Accounts - 7,312 Total assets 166,486 172,823 Liabilities: Due to other governments - 117,732 Total liabilities - 117,732 Net position: Restricted for individuals,arganizations and other governments 166,486 55,091 Totalnetposition $ 166,486 $ 55,091 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -44- CITY OF CANTON STARK COUNTY,OHIO STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Private-Purpose Trust Custodial Additions: Fines and forfeitures for other governments $ - $ 1,079,892 Property tax collection for other governments - 1,437,559 Earnings on investments 7,711 - Total addirions 7,711 2,517,451 Deductions: Fines and forfeitures distributions to other governments - 1,080,375 Property tax distributions to other governments - 1,446,746 Total deducrions - 2,527,121 Net change in fiduciary net posirion 7,711 (9,670) Net position beginning of year(restated) 158,775 64,761 Net position end of year $ 166,486 $ 55,091 SEE ACCOMPANYING NOTES TO THE BASIC FINANCIAL STATEMENTS -45- THIS PAGE IS INTENTIONALLY LEFT BLANK -46- CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 1-DESCRIPTION OF THE CITY AND REPORTING ENTITY The City of Canton(the"City")is a municipal corporation incorporated under the laws of the State of Ohio. The City operates under a Mayor-Council form of government. The Mayor and Council are elected. The City provides police and fire protection, emergency medical,parks and recreation, planning, zoning, street maintenance and repair, refuse collecrion and general administrative services to the cirizens of the City. Reporting Entity The City's reporting entity has been defined in accordance with GASB Statement No. 14, "The Financial Reporting Enti "as amended by GASB Statement No. 39,"Determinine Whether Certain Oreanizations Are Component Units" and GASB Statement No. 61,"The Financial Reportin�Entity: Omnibus an Amendment of GASB Statements No. 14 and No. 34". The reporting entity is comprised of the primary government, component units and other organizations that are included to ensure that financial statements are not misleading. A primary government consists of all funds, departments, boards and agencies that are not legally separate from the City. The primary government of the City includes City departments and agencies that provide the following services: police protection, firefighting and prevention, street maintenance and repairs,building inspection,parks and recreation,water, sewer and sanitation. Component units are legally separate organizations for which the City is financially accountable. The City is financially accountable for an organization if the City appoints a voting majority of the organization's Governing Board and(1) the City is able to significantly influence the programs or services performed or provided by the organizarion;ar(2)the City is legally entitled to or can otherwise access the organization's resources;or(3)the City is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to,the organization; or(4) the City is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the City in that the City approves the budget, the issuance of debt or the levying of taxes. Certain arganizations are also included as component units if the nature and significance of the relationship between the primary government and the organization is such that exclusion by the primary government would render the primary government's financial statements incomplete ar misleading. Based upon the application of these criteria,the City has two component units,the Canton Communiry Improvement Corporation(CCIC)and the Canton City Board of Health (BOH). The City has the voting majority on the CCIC's Board with no other subdivisions having any representation, and the CCIC is completely dependent on the City for financial support. The City appoints all board members of the BOH and the BOH is dependent of the City for financial support. The City reports the financial status of the CCIC and BOH as discretely presented component units in its basic financial statements. A complete copy of the CCIC and BOH financial statements can be obtained by contacting the City's Community and Economic Development Department and Health Director,respectively. See Note 17 for detail. The City is associated with the Stark Area Regional Transit Authority,the Stark Council of Governments and the Stark County Regional Planning Commission as jointly governed organizations: Canton Tomorrow Inc., and the Downtown Canton Special Improvement District as joint ventures. See Notes 15 and 16 for detail. NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City have been prepared in conformity with generally accepted accounring principles(GAAP)as applied to local governmental units. The Governmental Accounting Standards Board(GASB)is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The most significant of the City's accounting policies are described below. A. Basis of Presentation The City's basic financial statements consist of government-wide statements,including a statement of net posirion and a statement of activiries, and fund financial statements, which provide a more detailed level of financial information. -47 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) 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 acrivities of the primary government, except for fiduciary funds. The activity of the internal service fund is eliminated to avoid"doubling up"revenues and expenses. The statements distinguish between those activiries of the Ciry that are governmental and those that are considered business-type activiries. The statement of net position presents the financial condition of the governmental and business-type activities of the City at year-end. The statement of acrivities presents a comparison between direct expenses and program revenues for each program or function of the City's governmental activities and for the business-type activities of the City. Direct expenses are those that are specifically associated with a service, program or department and therefore are clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program. Revenues,which are not classified as program revenues,are presented as general revenues of the City, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each business segment or governmental function is self-financing or draws from the general revenues of the City. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. The only exception is for contributions from the City's Water, Sewer and Refuse Departments to the City's Motor Vehicle Department,Computer Department,and the City's vehicle self-insurance fund. Activities of these three divisions are included with the governmental activities, thus any contributions and corresponding expenses from other governmental funds are eliminated. This activity remains in the business-type activities in order to not distort the direct costs and program revenues reported for all of the functions involved. Fund Financial Statements-During the year,the Ciry segregates transactions related to certain City functions or activities in separate funds to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the City at this more detailed leveL The focus of governmental and enterprise fund financial statements is on major funds. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column. The internal service fund is presented in a single column on the face of the proprietary fund statements. Fiduciary funds are reported by type. B. Fund Accounting The City uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. There are three categories of funds: governmental, proprietary and fiduciary. Governmental Funds - Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current fmancial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the City's major governmental funds: General fund-The general fund accounts far all financial resources except those required to be 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. Community and economic development fund- To account for HUD community and economic development block grant money used for the acquisirion of real property, administrative costs, public facilities, and the rehabilitation of real property. -48 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) American Rescue Plan Act(ARPA,Zfund- To account for federal grant revenues and expenditures to combat and reduce the effects of the COVID-19 pandemic. Capital projects fund- To account for the City's capital projects and expenditures of 18 percent of the net income tax receipts. Motor vehicle purchase fund - To account for the purchase and maintenance of the City's vehicles and expenditures of 4 percent of the net income tax receipts. Nonmajor governmental funds of the City are used to account for (a) financial resources that are restricted, committed, or assigned to expenditures for capital outlays including the acquisition or construction of capital facilities and other capital assets,(b)specific revenue sources that are restricted or committed to an expenditure for specified purposes other than debt service or capital projects and (c) financial resources that are restricted, committed,or assigned to expenditure for principal and interest. Proprietary Funds - Proprietary fund reporting focuses on changes in net position, financial position and cash flows. Proprietary funds are classified as either enterprise or internal service. Enterprise Funds - Enterprise funds may be used to account for any activity for which a fee is charged to external users far goods ar services. The following are the City's majar enterprise funds: Water operatingfund-The water operating enterprise fund accounts for the provision of water treatment and distribution to its residential and commercial users located within the City, and surrounding communities. Sewer operating_fund- The sewer operating enterprise fund accounts for the provision of sanitary sewer service to the residents and commercial users located within the City, and several surrounding communities. Refuse operatingfund-The refuse operating enterprise fund accounts for the provision of trash collection to the residents and commercial users located in the City. The City's nonmajor enterprise fund is used to account for the provision of building code services. Internal Service Funds-Internal service funds account for the financing of services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. The City's internal service funds report on a self-insurance program for employee medical benefits, compensated absences, and the City's retrospective rating warker's compensation benefits. Fiduciary Funds - Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: pension trust funds, investment trust funds, private-purpose trust funds and custodial funds. Trust funds are distinguished from custodial funds by the existence of a trust agreement or equivalent arrangements that have certain characteristics. Custodial funds are used to report fiduciary activities that are not required to be reported in a trust fund. The City's only trust fund is a private-purpose trust fund established to account for monies donated to assist the poor of the City. The custodial funds account for building permit fees collected on behalf of the State,municipal court collections that are distributed to various local governments, collection of properry taxes to be distributed to the Special Improvement District Board,and the collecrion and disbursement of JEDD income taxes. -49 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) C. Measurement Focus Government-Wide Financial Stateinents - The government-wide financial statements are prepared using the economic resources measurement focus. All non-fiduciary assets and deferred outflows of resources and liabilities and deferred inflows of resources associated with the operation of the City are included on the statement of net position. Fund Financial State�nents-All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and deferred outflows of resources and current liabilities and deferred inflows of resources generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e., revenues and other financing sources)and uses(i.e.,expenditures and other financing uses)of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds. Like the government-wide statements, all proprietary funds and fiduciary funds are accounted for on a flow of economic resources measurement focus. All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of these funds are included on the statement of net position. The statement of changes in fund net position presents increases (i.e., revenues) and decreases (i.e., expenses)in total net position. For proprietary funds,the statement of cash flows provides information about how the City fmances and meets the cash flow needs of its proprietary activities. In fiduciary funds,a liability to the beneficiaries of the fiduciary activity is recognized when an event has occurred that compels the government to disburse fiduciary resources. Fiduciary fund liabilities other than those to beneficiaries are recognized using the economic resources measurement focus. Fiduciary funds present a statement of changes in fiduciary net position which reports additions to and deductions from custodial funds. D. Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Proprietary and fiduciary funds also use the accrual basis of accounting. Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue,the recording of deferred inflows and in the presentation of expenses versus expenditures. Revenues-Exchange and Non-exchange Transactions-Revenue resulting from exchange transactions,in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis,revenue is recarded in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the City, available means expected to be received within sixty days of year-end. - 50 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) Nonexchange transactions, in which the City receives value without directly giving equal value in return, include income taxes,property taxes,grants,entitlements and donations. On an accrual basis,revenue from property taxes is recognized in the year for which the taxes are levied(see Note S.A). Revenue from income taxes is recognized in the period in which the income is earned(see Note S.B). Revenue fi-om grants, entitlements and donarions is recognized in the year in which all eligibility requirements have been sarisfied. Eligibiliry requirements include timing requirements,which specify the year when the resources are required to be used or the year when use is first permitted,matching requirements,in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis,revenue from nonexchange transactions must also be available before it can be recognized. Under the modified accrual basis,the following revenue sources are considered to be both measurable and available at year-end: income tax, delinquent property tax, state-levied locally shared taxes (including gasoline tax), fines and forfeitures,interest, and fees. Deferred Outflows of Resources and Deferred Inflows of Resources-In addition to assets,the government-wide statement of net position will report a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. See Notes 13 and 14 for deferred outflows of resources related to net pension liability/asset and net OPEB liability/asset,respectively. In addition to liabilities,both the government-wide statement of net posirion and the governmental fund financial statements report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources(revenue) until that time. Deferred inflows of resources include property taxes and unavailable revenue. Property taxes represent amounts for which there is an enforceable legal claim as of December 31,2022,but which were levied to finance 2023 operations. These amounts have been recorded as a deferred inflow of resources on both the government-wide statement of net position and the governmental fund financial statements. Unavailable revenue is reported only on the governmental funds balance sheet, and represents receivables which will not be collected within the available period. Unavailable revenue includes,but is not limited to,income taxes,delinquent properry taxes and intergovernmental grants. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. The deferred inflow of resources for leases is related to the lease receivable and is being amorrized to lease revenue in a systematic and rarional manner over the term of the lease. See Notes 13 and 14 for deferred inflows of resources related to net pension liabiliry/asset and net OPEB liability/asset, respectively. These deferred inflows of resources are only reported on the government-wide statement of net position. Expenses/Expenditures-On the accrual basis of accounting,expenses are recognized at the time they are incurred. The measurement focus of governmental fund accounting is on decreases in net financial resources(expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liabiliry is incurred,if ineasurable. Allocations of cost, such as depreciarion and amarrizarion, are not recognized in governmental funds. - 51 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) E. Appropriations A temporary appropriation ordinance to control expenditures may be passed on or about January 1 of each year for the period January 1 to March 31. An annual appropriation ordinance must be passed by April 1 of each year, for the period January 1 to December 3L The legal level of budgetary control, established by the appropriation ordinance,fixes spending authority at the account level split between salary and non-salary line items within each department within each fund. Any budgetary modifications at this level or above may only be made by resolution of the City Council. The appropriation ordinance may be amended during the year by acrion of Council, as new information becomes available,provided that total fund appropriations do not exceed current estimated resources, as certified. F. Lapsing of Appropriations At the close of each 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 succeeding fiscal year and is not re-appropriated. G. Cash and Cash Equivalents To improve cash management,cash received by the City is pooled.Monies for all funds,except the private-purpose trust fund and funds requiring that interest proceeds follow the invested principal, are maintained in this pool. Individual fund integrity is maintained through the City's records. The City utilizes financial institutions to service bonded debt as principal and interest come due. At year end,the balances in these accounts are presented as"cash with fiscal agent"on the City's financial statements. The City has segregated bank and investment accounts for monies held separate from the City's central bank account related to the private-purpose trust fund and the municipal court custodial fund. These monies are presented in the statement of fiduciary net position as"cash and cash equivalents in segregated accounts" and"investments in segregated accounts"since they are not required to be deposited into the City treasury. During 2022,investments were limited to Federal National Mortgage Association(FNMA)securities,Federal Farm Credit Bank (FFCB) securities, Federal Home Loan Mortgage Corporation (FHLMC) securities, Federal Home Loan Bank (FHLB) securities, Agriculture Mortgage securities (AGM), Negotiable certificates of deposit (Negotiable CDs), Commercial Paper, U.S. Treasury Notes, STAR Ohio, and U.S. Government Money Market Mutual Funds. Except for STAR Ohio and nonparticipating investment contracts, investments are reported at fair value which is based on quoted market prices. Nonparticipating investment contracts,such as repurchase agreements, are reported at cost. During 2022,the City invested in STAR 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,but has adopted Governmental Accounting Standards Board (GASB), Statement No. 79, "Certain External Investment Pools and Pool Participants." The City measures its 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 NAV per share that approximates fair value. Far 2022,there were no limitations or restrictions on any participant withdrawals due to redemption notice periods, liquidity fees,or redemption gates.However,24 hours advance notice for deposits and withdrawals of$100 million or more is encouraged. STAR Ohio reserves the right to limit the transacrion to$250 million,requiring the excess amount to be transacted the following business day(s), but only to the $250 million limit. All accounts of the participant will be combined for these purposes. - 52 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) Investment procedures are restricted by the provisions of the Ohio Revised Code. Interest revenue credited to the general fund during 2022 amounted to$1,153,607,which includes$1,050,210,assigned from other City funds. For purposes of the statement of cash flows and for presentation on the statement of net position and the balance sheet, investments with an original maturity of three months or less and investments of the cash management pool are considered to be cash equivalents. H. Inventory On government-wide financial statements, inventaries of supplies are presented at cost and inventories held for resale are reported at the lower of cost or market. Inventories are recorded on a first-in, first-out basis and are expensed when used. On fund financial statements,inventories of governmental funds are stated at cost while inventories held for resale of proprietary funds are stated at the lower of cost or market and supplies of proprietary funds are reported at cost. For all funds, cost is determined on a first-in, first-out basis. Inventory in governmental funds consists of expendable supplies held for consumption. The cost of inventory items is recorded as an expenditure in the governmental fund types when purchased. Inventories of the proprietary funds are expensed when used. L Prepaid Items Payments made to vendors for services that will benefit periods beyond December 31,2022,are recorded as prepaid items using the consumption method by recarding a current asset for the prepaid amount and reflecting the expenditure/expense in the year in which it was consumed. J. Capital Assets General capital assets are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in the governmental funds. These assets are reported in the governmental activities column of the government-wide statement of net position, but are not reported in the fund financial statements. Capital assets utilized by the proprietary funds are reported both in the business-type activities column of the government-wide statement of net position and in the respective funds. All capital assets are capitalized at cost (or estimated historical cost) and updated far additions and retirements during the year. Donated capital assets are recorded at their acquisition values as of the date received. The City maintains a capitalization threshold of five thousand dollars. The City's infrastructure consists of bridges,culverts, storm sewers, streets, streetlights, traffic signals, water lines and sewer lines. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset's life are not. Interest incurred during the construcrion of enterprise capital assets is also capitalized. All reported capital assets are depreciated except for land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the City Engineer's interpretation of historical records of necessary improvements and replacement. Depreciation is computed using the straight-line method over the following useful lives: - 53 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) Governmental Business-Type Activities Activities Description Estimated Lives Estimated Lives Buildings and structures 10 to 45 years 10 to 45 years Vehicles and equipment 10 to 15 years 10 to 15 years Infrastructure 10 to 50 years 10 to 50 years Intangible leased assets 5 to 30 years 5 years The City is reporting intangible right to use assets related to leased equipment and buildings. The intangible assets are being amortized in a systematic and rational manner of the shorter of the lease term or the useful life of the underlying asset. K. Interfund Balances On fund financial statements,interfund loans are classified as"due to/from other funds"on the balance sheet.Long- term interfund loans are classified as"advances to other funds".These amounts are eliminated in the governmental and business-type activities columns of the statement of net position, except for any net residual amounts due between governmental and business-type activities,which are presented as internal balances. L. Compensated Absences The City reports compensated absences in accordance with the provisions of GASB Statement No. 16,"Accountin� for Compensated Absences." Vacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributable to services already rendered and it is probable that the employer will compensate the employees for the benefits through paid time off or some other means. The City recards a liability for accumulated unused vacation time when earned for all eligible employees with more than one year of service. Sick leave benefits are accrued as a liabiliry using the termination method. An accrual for unused earned sick leave is made to the extent that it is probable that benefits will result in termination payments. The liability is an estimate based on the City's past experience of making termination payments. The entire compensated absence liability is reported on the government-wide financial statements. M. Accrued Liabilities and Long-Term Obligations All payables,accrued liabilities and long-term obligations are reported in the government-wide financial statements, and all payables, accrued liabilities and long-term obligations payable from proprietary funds are reported on the proprietary fund financial statements. In general,governmental fund payables and accrued liabilities that,once incurred,are paid in a timely manner and in full from current financial resources are reported as obligations of the funds. However, claims and judgments, and compensated absences that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are due for payment during the current year. Notes,capital leases and long- term loans are recognized as a liability on the fund financial statements when due. Net pension/OPEB liability should be recognized in the governmental funds to the extent that benefit payments are due and payable and the pension/OPEB plan's fiduciary net position is not sufficient for payment of those benefits. - 54 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) N. Fund Balance Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows: Nonspendable The nonspendable fund balance category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The"not in spendable form" criterion includes items that are not expected to be converted to cash. It also includes the long-term amount of loan receivable in the general fund. Restricted Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors(such as through debt covenants),grantors,contributors,or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation (City ardinances). Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources (from external resource providers)and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceabiliry means that the Ciry can be compelled by an external party-such as citizens,public interest groups,or the judiciary to use resources created by enabling legislarion only for the purposes specified by the legislation. Committed The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action(ordinance)of City Council.Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action (ordinance) it employed to previously commit those amounts. In contrast to fund balance that is restricted by enabling legislation, committed fund balance classification may be redeployed for other purposes with appropriate due process. Constraints imposed on the use of committed amounts are imposed by Ciry Council, separate from the authorization to raise the underlying revenue; therefore, compliance with these constraints are not considered to be legally enforceable.Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Assigned Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the general fund, assigned amounts represent intended uses established by policies of Ciry Council,which includes giving the City Auditor the authority to constrain monies for intended purposes. When unassigned fund balance is a deficit in the general fund, assigned fund balance may not be presented in the general fund. Unassigned Unassigned fund balance is the residual classificarion for the general fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted,committed,or assigned. The City applies restricted resources first when expenditures are incurred for purposes for which either restricted ar unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed resources are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. - 55 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) O. Net Position Net position represents the difference between assets and deferred outflows and liabilities and deferred inflows. Net position net investment in capital assets consists of capital assets,net of accumulated depreciation,reduced by the outstanding balances of any borrowing used for the acquisirion, 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 or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The City applies restricted resources first when an expense is incurred for the purposes for which both restricted and unrestricted net position is available. P. Operating Revenues and Expenses Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. For the City, these revenues are primarily charges for services for water services, sewer treatment, and refuse collection for the enterprise funds, and the workers compensation, health insurance, and compensated absences claims for the internal service funds. Operating expenses are necessary costs incurred to provide the good or service that are the primary activity of the fund. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses. Q. Contributions of Capital Contributions of capital in proprietary fund financial statements arise from outside contributions of capital assets, tap-in fees to the extent they exceed the cost of the connection to the system,or from grants or outside contributions of resources restricted to capital acquisition and construction. During 2022, the Ciry recognized capital contributions of$4,945,591 in the water operating fund related to capital grants funding and$4,994 in the nonmajor enterprise fund related to capital grant funding. R. Interfund Activity Transfers between governmental and business-type activities on the government-wide statements are reported in the same manner as general revenues. 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 non-operating revenues/expenses in business-type activities. Interfund transfers are eliminated when reported in the entity wide financial statements for both the governmental and business-type activities. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund, and as a reducrion of expenditures/expenses in the fund that is reimbursed. 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 Administration and that are either unusual in nature or infrequent in occurrence. The City did not have an extraordinary or special item in 2022. T. Estimates The preparation of the financial statements in conformity with GAAP 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. - 56 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Continued) U. Pensions/Other Postemployment Benefits(OPEB) For purposes of ineasuring the net pension asset, net pension/OPEB liabiliry, net pension asset, net OPEB asset, deferred outflows of resources and deferred inflows of resources related pensions/OPEB, and pension/OPEB expense,information about the fiduciary net position of the pension/OPEB plans and additions to/deductions from their fiduciary net position have been determined on the same basis as they are reported by the pension/OPEB 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. V. Unearned Revenue Unearned revenue arises when resources are received by the City before it has a legal claim to them.In subsequent periods,when both revenue recognition criteria are met,ar when the government has a legal claim to the resources, revenue is recognized. NOTE 3-ACCOUNTABILITY AND COMPLIANCE A. Change in Accounting Principles For 2022, the City has implemented GASB Statement No. 87, "Leases", GASB Implementation Guide 2019-3, "Leases",GASB Implementation Guide 2020-1,"Implementation Guide Update-2020",GASB Statement No.91, "Conduit Debt Obli�ations", GASB Statement No. 92,"Omnibus 2020",GASB Statement No. 93, "Replacement �Interbank O�fered Rates", GASB Statement No. 97, " Certain Component Unit Criteria, and Accountin�and Financial Reportin�for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment o� GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32" and certain paragraphs of GASB Statement No. 99,"Omnibus 2022". GASB Statement No. 87 and GASB Implementation Guide 2019-3 enhance the relevance and consistency of information of the government's leasing activities. It establishes requirements for lease accounting based on the principle that leases are financings of the right to use an underlying asset.A lessee is required to recognize a lease liability and an intangible right to use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. These changes were incorporated in the City's 2022 financial statements. The City recognized $698,026 in governmental activities in leases receivable at January 1,2022,due to the implementation of GASB 87;however, this entire amount was offset by deferred inflows of resources for leases.The City recognized$270,363 in business- type activities in leases receivable at January 1,2022,due to the implementation of GASB 87;however,this entire amount was offset by deferred inflows of resources for leases. GASB Implementation Guide 2020-1 provides clarification on issues related to previously established GASB guidance. The implementation of GASB Implementation Guide 2020-1 did not have an effect on the financial statements of the City. GASB Statement No. 91 provides a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with(1)commitments extended by issuers,(2)arrangements associated with conduit debt obligations,and(3)related note disclosures.This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligarion; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of addirional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligarions; and improving required note disclosures. The implementation of GASB Statement No. 91 did not have an effect on the financial statements of the City. - 57 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 3-ACCOUNTABILITY AND COMPLIANCE-(Continued) GASB Statement No. 92 enhances comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The implementation of GASB Statement No. 92 did not have an effect on the financial statements of the City. GASB Statement No. 93 establishes accounting and financial reporting requirements related to the replacement of Interbank Offered Rates (IBORs) in hedging derivative instruments and leases. Tt also identifies appropriate benchmark interest rates for hedging derivative instruments. The implementation of GASB Statement No. 93 did not have an efFect on the financial statements of the City. GASB Statement No. 97 is to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duries that a governing board typically would perform; (2) mirigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit(OPEB)plans,and employee benefit plans other than pension plans or OPEB plans(other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting far Internal Revenue Code (IRC) Section 457 deferred compensation plans(Section 457 plans)that meet the definition of a pension plan and for benefits provided through those plans. The implementation of GASB Statement No. 97 did not have an effect on the financial statements of the City. GASB Statement No. 99 is to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and applicarion of certain GASB Statements and(2)accounting and financial reporting for financial guarantees. The implementation of GASB Statement No. 99 did not have an effect on the financial statements of the City. B. Deticit Fund Balances/Net Position Fund balances/net position at December 31,2022 included the following individual fund deficits: Nonmajor funds Deficit Centennial Plaza TDD $ 46,742 Law enfarcement block grant 6,503 Police grants and donations 100,053 Fire grants and donations 127,785 Jobs Ohio 5,735 49th St NW Storm Sewer Rehab Project 290,460 3rd St SE Resurfacing Project 3,055 36th St NW Sotrm Roadway water and sewer 1,127,905 Internal service funds: Health insurance 392,610 Compensated absences fund 7,411,040 The general fund is liable for any deficit in these funds and provides transfers when cash is required, not when accruals occur. The deficit fund balances resulted from adjustments for accrued liabilities. - 58 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 3-ACCOUNTABILITY AND COMPLIANCE-(Continued) C. Restatement of net position The City's custodial funds net position at December 31, 2021 has been restated to remove a component unit as follows: C�istodial Funds Net position as previously reported $ 5,818,357 Remove Board of Health (5,753,596) Restated net position at January 1,2022 $ 64,761 NOTE 4-DEPOSITS AND INVESTMENTS State statutes classify monies held by the City into three categories. Active deposits are public deposits necessary to meet current demands on the City treasury. Active monies must be maintained either as cash in the City treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal(NOW)accounts,or in money market deposit accounts. Inactive deposits are public deposits that Council has identified as not required for use within the current 5-year period of designation of depositories. Inactive deposits must either be evidenced by certificates of deposit maturing not later than the end of the current period of designation of depositories, or by savings or deposit accounts including, but not limited to,passbook accounts. Interim deposits are deposits of interim monies. Interim monies are those monies,which are not needed for immediate use but which will be needed before the end of the current period of designation of depositories. Interim deposits must be evidenced by time certificates of deposit maturing not more than one year from the date of deposit or by savings or deposit accounts including passbook accounts. Protection of the deposits is provided by the Federal Deposit Insurance Corporation (FDIC), by eligible securities pledged by the financial institution as security for repayment, or by the financial institutions 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. Interim monies may be invested in the following securities: 1. 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 and interest by the United States; 2. Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality,including,but not limited to,the Federal National Mortgage Association,Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities; 3. Written repurchase agreements in the securiries listed above provided that the fair value of the securities subj ect to the repurchase agreements 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; - 59 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 4-DEPOSITS AND INVESTMENTS-(Continued) 4. Bonds and other obligations of the State of Ohio; and with certain limitations including a requirement for maturity within ten years from the date of settlement,bonds and other obligations of political subdivisions of the State of Ohio,if training requirements have been met; 5. Time certificates of deposit or savings or deposit accounts including,but not limited to,passbook accounts; 6. No-load money market mutual funds consisting exclusively of obligations described in division(1) ar(2) 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 7. The State Treasurer's investment pool,the State Treasury Asset Reserve of Ohio(STAR Ohio);and 8. Certain bankers'acceptances(for a period not to exceed one hundred eighty days)and commercial paper notes (for a period not to exceed two hundred seventy days) in an amount not to exceed 40 percent of the interim monies available for investment at any one time if training requirements have been met. The City may also invest any monies not required to be used for a period of six months or more in the following: 1. Bonds of the State of Ohio; 2. Bonds of any municipal corporation, village, county,township, or other political subdivision of this State, as to which there is no default of principal,interest or coupons; and, 3. Obligations of the City. Investments in stripped principal or interest obligation, reverse repurchase agreements and derivatives are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of leverage and short selling are also prohibited. Except as noted above, an investment must mature within five years from the date of purchase unless matched to a specific obligation or debt of the Ciry,and must be purchased with the expectation that it will be held to maturiry. Investments may only be made through specified dealers and institutions. Payment for investments may be made only upon delivery of the securities representing the investments to the treasurer or qualified trustee or,if the securities are not represented by a certificate,upon receipt of confirmation of transfer from the custodian. Cash on Hand: At year end, the City had $1,000 in undeposited cash on hand which is included on the financial statements as part of"equiry in pooled cash and cash equivalents." Cash with Fiscal Agent and in segregated accounts: At year end, the City had $3,019 on deposit with financial institurions to service bonded debt as principal and interest come due. This account is maintained separate from the Ciry's internal investment pooL The balance in this account is included in"deposits with financial institutions"below. At year-end,the City had$490,167 on deposit with financial insritutions to account for retainage payments.This account is maintained separate from the City's internal investment pool. The balance in this account is included in"deposits with financial institutions"below. Cash and Cash Equivalents in Segregated Accounts: At year end, the City had $117,732 deposited with a fmancial institution for monies related to the municipal court custodial fund. In addition, the City had$1,680 deposited with a financial institution related to the private-purpose trust fund and $32,711 of nonnegotiable certificates of deposit held in trust by financial institutions for the private-purpose trust fund. These accounts are maintained separate from the Ciry's internal investment pool. The balances in these accounts are included in "deposits with financial institutions" below. - 60 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 4-DEPOSITS AND INVESTMENTS-(Continued) Investments in Segregated Accounts: At year end,the City had$132,095 in municipal bond mutual funds held in trust for the private-purpose trust fund. The mutual funds are maintained separate from the City's internal investment pool. The balances of the mutual funds are included in"investments"below. A. Deposits with Financial Institutions At December 31,2022,the carrying amount of all City deposits was $36,973,213 and the bank balance of all City deposits was $46,631,975. Of the bank balance, $1,405,142 was covered by the Federal Deposit Insurance Corporation, $23,539,ll4 was covered by the Ohio Pooled Collateral System and $21,687,719 was exposed to custodial risk as discussed below because those deposits were uninsured and uncollateralized. Custodial credit risk is the risk that, in the event of bank failure, the City will not be able to recover deposits or collateral securities that are in the possession of an outside party.The City has no deposit policy for custodial credit risk beyond the requirements of State statute. Ohio law requires that deposits either be insured or protected by(1) eligible securities pledged to the City's and deposited with a qualified trustee by the fmancial institution as security for repayment whose fair value at all times shall be at least 105 percent of the deposits being secured, or (2) participation in the OPCS, a collateral pool of eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution. OPCS requires the total fair value of the securities pledged to be 102 percent of the deposits being secured or a rate set by the Treasurer of State.For 2022,the City's financial institutions were approved for a reduced collateral rate of 60 percent through the OPCS. Although all statutory requirements for the deposit of money had been followed, noncompliance with Federal requirements could potentially subject the City to a successful claim by the FDIC. B. Investments As of December 31,2022,the City had the following investments and maturity: Investment Maturity Measurement/ Measurement 1 Year 1 to 2 2 to 3 Greater Than Investment type Value or Less Years Years 3 Years Pair T�alue: FFCB $ 18,511,214 $ 2,404,810 $ 4,389,353 $ 8,161,935 $ 3,555,116 FHLB 17,496,156 3,503,887 2,403,120 2,826,781 8,762,368 FHLMC 11,963,822 1,930,780 3,745,935 5,239,771 1,047,336 FNMA 2,743,805 486,335 460,540 1,796,930 - AGM 2,960,876 484,230 2,476,646 - - Negotiable CDs 6,001,295 3,397,012 2,153,058 228,174 223,051 Commercial paper 19,088,382 19,088,382 - - - U.S.TreasuryNotes 33,192,964 2,439,340 5,057,088 2,929,548 22,766,988 U.S. Government Money Market Mutual Funds 313,160 313,160 - - - Amortized Cost.• STAR Ohio 13,647,630 13,647,630 - - - Total $ 125,919,304 $ 47,695,566 $20,685,740 $ 21,183,139 $ 36,354,859 The weighted average of maturity of investments is 1.96 years. - 6l - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 4-DEPOSITS AND INVESTMENTS-(Continued) Fair T�alue Measurements: The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level l inputs are quoted prices in active markets for identical assets;Leve12 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City's investments in U.S. government money market mutual funds are valued using quoted market prices in active markets (Level 1 inputs). The City's investments in federal agency securities (FFCB, FHLB, FHLMC, FNMA, AGM), commercial paper, negoriable CDs,and U.S.Treasury Notes are valued using quoted prices in markets that are not considered to be active,dealer quotations or alternative pricing sources for similar assets or liabilities for which all significant inputs are observable,either directly or indirectly(Leve12 inputs). Credit Risk: The City's investments in U.S. Treasury Notes and the federal agency securities that underlie repurchase agreement were rated AA+and Aaa by Standard&Poor's and Moody's Investor Services,respectively. The City's investment in commercial paper was rated A-1+ and P-1 by Standard&Poor's and Moody's Investor Services,respectively.The negotiable CD's were fully covered by the FDIC. The U.S.Government Money Market Mutual Funds were rated AAAm by Standard& Poor's. Standard & Poor's has assigned STAR Ohio an AAAm money market rating. The City has no policy further restricting credit risk beyond the statutory guidelines,which limit investment choices. Custodial Credit Risk.• For an investment, custodial credit risk is the risk that, in the event of the failure of the counter party,the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The federal agency securities and U.S. Treasury Notes are exposed to custodial credit risk in that they are uninsured,unregistered and held by the counterparty's trust department or agent,but not in the City's name. The City has no investment policy dealing with investment custodial credit risk beyond the requirement in State statute that prohibits payment far investments priar to the delivery of the securities representing such investments to the Ciry Auditor or qualified trustee. Concentration of Credit Risk: The City's investment policy addresses concentration of credit risk by requiring investments to be diversified to reduce the risk of loss resulting from over concentration of assets in a specific issue or specific class of securities. The following table includes the percentage of each investment type held by the City at December 31,2022: Measurement/ Measurement Investment type Value %of Total Fair Value FFCB $ 18,511,214 14.70 FHLB 17,496,156 13.89 FHLMC 11,963,822 9.50 FNMA 2,743,805 2.18 AGM 2,960,876 235 Negotiable CDs 6,001,295 4.77 Commercial paper 19,088,382 15.16 U.S.TreasuryNotes 33,192,964 26.36 U.S.Government Money Market Mutual Fund 313,160 0.25 Amortized Costs STAR Ohio 13,647,630 10.84 Total $ 125,919,304 100.00 - 62 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 4-DEPOSITS AND INVESTMENTS-(Continued) C. Reconciliation of Cash and Investments to the Statement of Net Position The following is a reconciliation of cash and investments as reported in the footnote above to cash and investments as reported on the financial statements as of December 31,2022: Cash and investments per note: Carrying amount of deposits $ 36,973,213 Investments 125,919,304 Cash on hand 1,000 Total $ 162,893,517 Cash,cash equivalents, and investments per statement of net position: Governmental activities $ 101,958,824 Business-type activities 60,602,696 Fiduciary funds 331,997 Total $ 162,893,517 NOTE 5-RECEIVABLES Receivables at December 31, 2022, consisted of taxes, accounts (billings for user charged services), interest, loans leases, and intergovernmental receivables. All of these receivables, except loans receivable, are considered fully collectible. No allowances for doubtful accounts have been recorded because uncollectible amounts are expected to be insignificant. Special assessments expected to be collected in more than one-year amount to$2,019,225 in the general fund,$289,393 in the community and economic development fund, and $251,490 in the nonmajor governmental funds. Special assessments are reported among accounts receivable on the statement of net position and the balance sheet and charges for services revenue on the statement of activities and the statement of revenues, expenditures, and changes in fund balance. A. Property Taxes Property taxes include amounts levied against all real and public utiliry property located in the City. Taxes collected from real property taxes(other than public utility)in one calendar year are levied in the preceding calendar year on the assessed value as of January 1 of that preceding year, the lien date. Assessed values are established by the County Auditor at 35 percent of appraised market value. All property is required to be revaluated every six years. Real property taxes are payable annually or semi-annually. If paid annually,payment is due December 31; if paid semi-annually, the first payment is due December 31, with the remainder payable by June 20. Under certain circumstances, State statute permits later payment dates to be established. Public utility 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. Public utility tangible personal property is assessed at varying percentages of true value;public utility real property is assessed at 35 percent of true value. 2022 public utility property taxes became a lien December 31, 2021, are levied after October 1, 2022, and are collected in 2023 with real property taxes. Public utility properiy taxes are payable on the same dates as real property taxes described previously. - 63 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 5-RECEIVABLES-(Continued) The County Auditor collects property taxes on behalf of all taxing districts in the County, including the City of Findlay. The Counry Auditor periodically remits to the Ciry its portion of the taxes collected. Property taxes receivable represents real properiy taxes,public utiliry taxes and outstanding delinquencies which are measurable as of December 31,2022 and for which there is an enforceable legal claim. In the governmental funds,the current portion receivable has been offset by a deferred inflow of resources since the current taxes were not levied to finance 2022 operations and the collection of delinquent taxes has been offset by a deferred inflow of resources since the collection of the taxes during the available period is not subject to reasonable estimation. On a full accrual basis, collectible delinquent property taxes have been recorded as a receivable and revenue while on a modified accrual basis the revenue is reported as a deferred inflow of resources. The tax rates per$1,000 of assessed valuation for the year ended December 31,2022,for all city operations applied to taxable property in the following taxing districts within the City limits was $3.40 for District 20 - Canton City School District, $2.00 for District 30 - Plain Local School District, $2.60 for District 25 - Canton Local School District,and$2.30 for District 345 -Osnaburg Local School District. The assessed values of real and public utility property upon which 2022 property tax receipts were based are as follows: Real property $ 891,772,210 Real and personal public utiliry 84,371,930 Total assessed value $ 976,144,140 B. Income Taxes In the past, the City levied a municipal income tax of two percent on all salaries, wages, commissions and compensation, and net profits earned within the City as well as incomes of residents earned outside of the City. Effective July 1, 2018, the income tax rate levied on wages, commissions, compensations and net profits eamed within the city as well as residents outside the City increased a half of a one percent and the rate became two and a half percent.Prior to July 1, 2018,the City allowed a credit of 100 percent of the tax paid to another municipality up to a maximum of 85 percent of the two percent levied by the City. With the new income tax rate as of July 1, 2018, if it be made to appear that an individual resident taxpayer has paid a municipal income tax to another municipaliry on the same income taxable as mentioned above, the city shall allow a credit against the new tax imposed of the amount so paid to the other municipaliry,equal to two and one-half(2.5%)of the amount obtained by multiplying the lower of the tax rate of such other municipality or of this municipaliry by the taxable income earned in or attributable to the municipality of employment or business activity,provided that such credit shall not be allowed unless the credit is claimed in a timely filed return including any extension granted. Employers within the City are required to withhold income tax on employee compensation and remit the tax to the City either monthly or quarterly,as required. Corporations and other individual taxpayers are required to pay their estimated tax quarterly and file a declaration annually. By City ardinance, income tax proceeds, after income tax department expenditures, are credited to the following funds: 75 percent to the general fund, 20 percent to the capital projects fund and 5 percent to the motor vehicle purchase fund. Effective July 1, 2018 income tax is distributed as follows,64 percent to the general fund, 18 percent to the capital projects fund,4 percent to the motor vehicle purchase fund,2 percent to the neighborhood fund, and 12 percent to the comprehensive plan fund. These allocations were voted upon and approved by the voters of the City on the May 8, 2018 ballot. This requires the fund balances for these funds to be reported as resri-icted as seen on page 127 and 128. - 64 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 5-RECEIVABLES-(Continued) C. Due from Other Governments A summary of intergovernmental receivables follows: Amounts Governmental activities Local government and local government revenue assistance $ 1,775,688 Hotel tax 239,976 Charges for services 1,358,712 Fines and forfeitures 10,331 Casino revenue 1,354,857 Gasoline and excise tax 1,062,966 $5 license plate tax 224,283 Motor vehicle tax 263,388 Grants 8,418,433 Total governmental activities 14,708,634 Business-type activities Loan proceeds 115,105 Grants 9,254 Total business-type activities 124,359 Grand total $ 14,832,993 D. Loans Receivable The community and economic development special revenue fund reflects community development loans receivable in the amount of $360,192. The loans receivable represents the principal owed to the City for Community Development Block Grants. The loans bear interest at annual rates between 0%and 11%. The loans will be repaid over periods up to 20 years. The general fund has reported a loan receivable in the amount of$963,931. The loan receivable represents an economic development loan made to Historic Hercules, LLC for betterments and improvements to The Historic Hercules which is being converted from a motor company facility into residential rental apartments and related facilities. The loan bears an annual interest rate of 3%with a repayment period not to exceed 10 years. The comprehensive plan implementation fund(a nonmajor governmental fund)has reported a loan receivable in the amount of$11,445,111. The loan receivable represents an economic development loan made to HOF Village Hotel II, LLC for improvements and renovations of a hotel located at 320 Market Avenue South. The loan bears an annual interest rate of 0.50%and matures on July 1,2027. - 65 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 5-RECEIVABLES-(Continued) E. Leases Receivable The City is reporting leases receivable of$15,931 in the park fund nonmajor governmental fund and$626,388 in the other special revenue nonmajor governmental fund. The City is also reporting a lease receivable of$246,303 in the water enterprise fund.For fiscal year 2022,the City recognized lease revenue of$63,379 and$29,494 in the governmental activities and business-type activities funds,respectively. This revenue is reported in rental income. The City reported interest revenue of$20,949 and$8,072 in the governmental activities and business-type activities, respectively. The City has entered into lease agreements at the following terms: Lease Lease Commencement End Payment Purpose Date Years Date Method Office space(Governmental) 2021 3 2024 Monthly Restaurant(Governmental) 2020 15 2035 Monthly Cell tower(Business-type) 2001 30 2031 Monthly Lease payments will be paid into the park, other, and water funds. The following is a schedule of future lease payments under the lease agreements: Governmenta] Activities Business-type Activities Fiscal Year Principal Interest Total Principal Interest Total 2023 $ 55,603 $ 19,373 $ 74,976 $ 24,099 $ 7,389 $ 31,488 2024 43,465 17,783 61,248 24,867 6,621 31,488 2025 43,565 16,435 60,000 25,659 5,829 31,488 2026 44,953 15,047 60,000 30,452 4,965 35,417 2027 46,385 13,615 60,000 32,231 3,973 36,204 2028-2032 255,055 44,945 300,000 108,995 5,651 114,646 2033 -2035 153,293 6,707 160,000 - - - Total $ 642,319 $ 133,905 $ 776,224 $ 246,303 $ 34,428 $ 280,731 NOTE 6-RISK MANAGEMENT A. Workers' Compensation Since 1989, the City has participated in the Ohio Bureau of Workers' Compensation Retrospective Rating Plan. Under the retrospective rating plan, the City assumes a portion of the risk in return for a reduction in current premiums. Current limits for claims incurred in 2022 are$200,000 per claim. A minimum premium for fixed costs is charged by the Ohio Bureau of Workers' Compensation. A maximum premium, the employer's experience-rated premium multiplied by the maximum percentage selected by the employer, may be charged back to the Ciry for a ten-year evaluation period per claim. For the policy year 2022, the City selected Tier 1 which calls for no claim limit and a 150 percent maximum premium limit. - 66 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 6-RISK MANAGEMENT-(Continued) The claims liability of$1,669,140 reported in the warkers compensation internal service fund at December 31, 2022, is estimated by the third-party administrators and is based on the requirements of GASB Statement No. 10, "AccountinQ and Financial Reporting for Risk Financin�and Related Insurance Issues", as amended by GASB Statement No. 30, "Risk Financin� Omnibus", which requires that a liability for unpaid claim costs, including estimates of costs relating to incurred but not reported claims, be reported. The estimate was not affected by incremental claim adjustment expenses and does not include other allocated or unallocated claim adjustment expenses. Changes in claims activity for the past two years are as follows: Balance Balance Beginning Claims Claim End Year of Year Incurred Payments of Year 2022 $ 1,669,140 $ 1,317,838 $ 1,317,838 $ 1,669,140 2021 1,669,140 1,187,996 1,187,996 1,669,140 B. Property and Liability The City is exposed to various risks of loss related to torts;theft of,damage to,and destruction of assets;errors and omissions;injuries to employees and natural disasters. The City contracts with Affiliated FM Insurance Company for commercial property coverage, and boiler and machinery coverage which has a $500,000,000 limit and a $100,000 deductible The City contracts with Ohio Plan Risk Management, Inc. through Hylant Administrative Services for automobile combined coverage,which has a$6,000,000 bodily injury and property damage limit; an $8,000,000 general aggregate limit and a $125,000 deductible. The City also contracts with Ohio Plan Risk Management, Inc. for liability coverages, which includes general liability, public official's liability and law enforcement liability. Each of these coverages has a$6,000,000 annual limit per claim and a$8,000,000 per year aggregate with a$125,000 deductible. The City's elected officials are bonded for their respective terms. In addition,several specific employees(i.e.,court bailiffs)are bonded where required by Ohio Revised Code. Settled claims have not exceeded this commercial coverage in any of the past three years. There has not been significant reducrion in coverage from the prior year. C. Medical The City has elected to provide employees' major medical, hospitalization, prescription and dental and vision coverage through a self-insured program. The City maintains a self-insurance internal service fund to account for and finance its uninsured risks of loss in this program. The City purchases stop-loss coverage of$200,000 specific per family. The third-party administrators,Aultcare and UMR,review all claims,which are then paid by the City. The claims liability of$719,737 reported in the Health Insurance Internal Service Fund at December 31, 2022, is estimated by the third-party administrators and is based on the requirements of GASB Statement No. 10, "Accountin�and Financial Reporting_for Risk Financing and Related Insurance Issues", as amended by GASB Statement No. 30, "Risk Financin� Omnibus", which requires that a liability for unpaid claims costs, including estimates of costs relating to incurred but not report claims, be reported. The estimate was not affected by incremental claim adjustment expenses and does not include other allocated or unallocated claim adjustment expenses. - 67 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 6-RISK MANAGEMENT-(Continued) Changes in the fund's claims liability amount for the last two years follow: Balance Balance Beginning Claims Claim End Year of Year Incurred Payments of Year 2022 $ 553,107 $ 16,603,478 $ 16,436,848 $ 719,737 2021 218,240 11,374,959 11,040,092 553,107 THIS SPACE IS LEFT INTENIONALLY BLANK - 68 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 7-CAPITAL ASSETS Due to the implementation of GASB Statement No. 87(see Note 3.A for detail),the City has reported capital assets far the right to use leased equipment and buildings which are reflected in the schedules below. Capital asset activity for the year ended December 31,2022 was as follows. Restated Balance Balance 12/31/21 Addirions Deductions 12/31/22 Governmental Activities Capital assets, not being depreciated/amortized: Land $ 14,198,023 $ 112,933 $ - $ 14,310,956 Construction in progress 14,542,817 18,742,762 (7,864,562) 25,421,017 Total capital assets, not being depreciated/amortized 28,740,840 18,855,695 (7,864,562) 39,731,973 Capital assets, being depreciated/amortized: Buildings and structures 67,949,989 214,363 (20,303) 68,144,049 Vehicles and equipment 41,782,543 1,763,956 (553,379) 42,993,120 Infrastructure 448,675,150 7,640,167 (2,263,476) 454,051,841 Intangible right to use: Leased buildings - 146,003 - 146,003 Leased equipment 47,444 - - 47,444 Total capital assets, being depreciated/amortized 558,455,126 9,764,489 (2,837,158) 565,382,457 Less accumulated depreciation/amortization: Buildings and structures (32,626,418) (1,736,578) 20,303 (34,342,693) Vehicles and equipment (28,611,274) (2,129,924) 553,379 (30,187,819) Infrastructure (347,169,315) (6,971,465) 2,263,476 (351,877,304) Intangible right to use: Leased buildings - (3,650) - (3,650) Leased equipment (9,489) (9,489) - (18,978) Total accumulated depreciation/amortization (408,416,496) (10,851,106) 2,837,158 (416,430,444) Total capital assets, being depreciated/amortized,net 150,038,630 (1,086,617) - 148,952,013 Governmental activities capital assets,net $ 178,779,470 $ 17,769,078 $ (7,864,562) $ 188,683,986 - 69 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 7-CAPITAL ASSETS-(Continued) Depreciation/amortization expense was charged to governmental functions as follows: General government $ 899,730 Security of persons and property 1,288,341 Transportation 7,578,326 Community environment 32,924 Leisure time activities 1,051,785 Total depreciation expense $ 10,851,106 THIS SPACE IS LEFT INTENIONALLY BLANK - 70 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 7-CAPITAL ASSETS-(Continued) Restated Balance Balance 12/31/21 Additions Deductions 12/31/22 Business-type activities Capital assets, not being depreciated/amortized: Land $ 3,371,564 $ - $ (174,984) $ 3,196,580 Construction in progress 92,717,268 14,670,855 (2,251,747) 105,136,376 Total capital assets, not being depreciated/amortized 96,088,832 14,670,855 (2,426,731) 108,332,956 Capital assets, being depreciated/amortized: Buildings and structures 123,691,025 155,400 (508,332) 123,338,093 Vehicles and equipment 31,602,085 942,415 (107,413) 32,437,087 Infrastructure 199,728,266 3,384,598 (192,337) 202,920,527 Intangible right to use: Leased equipment 19,578 - - 19,578 Total capital assets, being depreciated/amortized: 355,040,954 4,482,413 (808,082) 358,715,285 Less accumulated depreciation/amortization: Buildings and structures (75,270,743) (1,784,159) 284,790 (76,770,112) Vehicles and equipment (16,558,023) (2,404,411) 107,413 (18,855,021) Infrastructure (136,547,105) (2,305,941) 192,337 (138,660,709) Intangible right to use: Leased equipment (3,916) (3,916) - (7,832) Total accumulated depreciation/amortization (228,379,787) (6,498,427) 584,540 (234,293,674) Total capital assets, being depreciated/amortized,net 126,661,167 (2,016,014) (223,542) 124,421,611 Business-type activities capital assets,net $ 222,749,999 $ 12,654,841 $ (2,650,273) $ 232,754,567 - 71 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 7-CAPITAL ASSETS-(Continued) Depreciation/amortization expense was charged to the enterprise funds as follows: Water operating $ 3,917,144 Sewer operating 2,151,539 Refuse operating 361,063 Building operating 68,681 Total depreciation expense $ 6,498,427 NOTE 8-COMPENSATED ABSENCES The criteria for determining vacation and sick leave components are derived from negotiated agreements, City ordinances and State laws. Employees earn two to six weeks of vacation per year, depending upon length of service. Ten to fifteen days of vacation may be carried forward into the next year. Employees may bank up to 75 days earned vacation time toward retirement,payable at retirement or termination. No more than 15 days of earned vacation may be banked in any one-year. In March 2003, the City eliminated banked vacation for individuals in management and non-bargaining classifications. In lieu of,or in addition to banking vacation, an employee may request to receive cash payment for unused vacation of no more than 10 days per year in minimum increments of five days calculated at 90 percent. of the current rate of pay. Employees in their 28th year or later, can be paid for up to 20 days at 90%. The employee may cash one to five weeks of banked vacation in each of three consecutive years. Employees must declare their desire to receive cash payment for banked vacation no later than November 1 of each year. Payment shall be made on the first regular pay day in December of each year. Employees must declare their desire to receive payment for the 90%no later than October 1 st of each year. Payment shall be made on the first regular pay day in November of each year. Approval of the 90%cash payment is within the sole discretion of the appointing authority. Employees earn sick leave at the rate 4.6 hours per 80 hours worked. Sick leave accumulation is unlimited. Upon retirement or death, employees who retire between January 1 of the 30th year of credited service or before December 31st of the year of the completion of the 32nd year of accredited service as determined by the Public Employees Retirement System of Ohio (PERS) shall receive payment for hundred percent (100%) of their accrued unused sick leave up to 175 days in lieu of the one hundred percent (100%) of the 150 days maximum or 1,200 hours for those employees of bargaining unit 3449/2937 unused sick leave. Firefighters and police can be paid 100 percent to a maximum of 188.5 days or 1,500 hours. After that hours are paid on a percentage based on the employees' years of service. In 2004,the City established a compensated absence claim fund for the purpose of depositing sick expense premiums from the employees' labor fund distribution to pay both current and previous unfunded compensated absences. The expense associated with current and future obligations is being charged as a direct claim against the compensated absences claim fund. The premium supparting the fund is included in the personal service charge for each fund. Prior to 2009,and the collapse of the City of Canton operarional income,the premium was equal to 125%of the total cost of the sick leave accrued on biweekly payrolls. In an attempt to maintain an adequate workforce in light of this revenue decline, the premium was reduced to 105% of the total cost of the sick leave accrued on a biweekly payroll for 2009 and 2010. The premium reset to 125% effective January 1, 2011 and remained unchanged for 2012, 2013, 2014 and 2015. In 2016 the premium was reduced to 105%. The premium reset to 125% for 2017 and continued at that rate during 2022. - 72 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS State Infrastructure Bank(SIB)Loans and Other Loans The City has annual debt requirements for the following loans,all related to governmental acrivities. A SIB loan was entered into in 2014 for the 12�"Street North Corridor Safety project. The interest rate for this loan is 3%. The original issue amount of the SIB loan was$227,046 with a scheduled maturity in 2024. The SIB loan was a direct placement with terms negotiated directly with the investor and were not offered for public sale. The annual debt service requirements to maturity for the 2014 SIB loan is as follows: 2014 State Infrastructure Bank Loan Year Ending Governmental Activities December 31 Principal Interest 2023 393,442 14,909 2024 201,159 3,017 Total $ 594,601 $ 17,926 Ohio Public Works Commission(OPWC)Loans The City entered into various loan agreements with the OPWC for the purpose of improving the water pollution control system,improving storm sewer operations and installing water lines. These are interest free loans. The City has pledged future revenues, net of certain operating expenses, in the water operating fund and sewer operating fund to repay the loans reported in the water and sewer operaring acrivities. The debt is payable from net revenues and is payable through 2051. Annual principal payments on the debt issues are expected to require 3.54 percent of net revenues for water and 0.06 percent of net revenues for sewer. The total principal remaining to be paid on the debt is$3,868,276 for water and $13,432 for sewer.Principal paid for the current year and total netrevenues were$350,033 and$9,885,288,respectively, for water and$8,461 and$13,369,024,respectively,for sewer. During 2022, the City received OPWC loans proceeds for the following projects: Edgefield Phase 1 and Phase 2 and Cleveland Avenue North West Water Main. The 30t" Street Resurfacing and Cleveland Avenue North West Water Main loan are not included in the schedule of annual debt service requirements to maturity below as the loans are not closed as of December 31, 2022 and a final amortization schedule is not available. OPWC loans are direct borrowings that have terms negotiated directly between the Ciry and the OPWC and are not offered for public sale.In the event of default,the OPWC may(1)charge an 8%default interest rate from the date of the default to the date of the payment and charge the City for all costs incurred by the OPWC in curing the default,(2)in accordance with Ohio Revised Code 164.05,direct the county treasurer of the county in which the Ciry is located to pay the amount of the default from funds that would otherwise be appropriated to the City from such county's undivided local government fund pursuant to ORC 5747.51-5747.53,or(3)at its discrerion,declare the enrire principal amount of loan then remaining unpaid,together with all accrued interest and other charges,become immediately due and payable. - 73 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) The following is a list of outstanding debt with the OPWC: Interest Purpose Rates Ori,ginal Amount Governmental activities,Market Avenue North sewer replacement 0.00% $ 300,000 Governmental acrivities,30th Street N.E. storm sewer improvement 0.00% 494,000 Governmental activities, SSth Street N.E. storm sewer improvement 0.00% 413,000 Governmental acrivities,37th Street Project(street portion) 0.00% 110,457 Governmental activities,Overbrook NW Storm Sewer 0.00% 60,899 Governmental activities,38th Street waterline roadway replacement 0.00% 542,104 Governmental activities,Mahoning Road corridor 0.00% 900,000 Governmental activities,30th Street Resurfacing 0.00% 765,000 * Governmental activities,Mahoning Road Improvement Phase 2 0.00% 900,000 Governmental activities,47th Street Northwest Storm Sewer Repair 0.00% 99,383 Governmental activities,Citywide Traffic Signal Upgrade 0.00% 263,628 Governmental activities,47th Street/Packard Ave Northwest Storm Sewer 0.00% 358,708 Governmental activities,Ridgewood Pase 1 Part 2 0.00% 482,625 Business-type activities,Harrisburg waterline 0.00% 63,102 Business-type activities,Harmont Avenue pump station 0.00% 107,900 Business-type activities,37th Street Project(water and sewer portions) 0.00% 264,866 Business-type activiries,Avondale water main replacement 0.00% 136,567 Business-type activities,Avondale water main replacement Phase 2 0.00% 94,734 Business-type activities,Ridgewood Phase 1 Part 1 0.00% 524,152 Business-type activiries,Edgefield Phase 1 0.00% 334,016 Business-type activiries,Edgefield Phase 2 0.00% 383,001 Business-type activiries, Cleveland Ave NW Water Main 0.00% 450,000 * Business-type activities, Sugar Creek Water Treatment Plant 0.00% 750,000 Business-type activities,Westmoreland water main 0.00% 600,000 Business-type activities,44th St Waterline Improvements 0.00% 225,923 Business-type activities,33rd St Watermain Replacement 0.00% 283,073 Business-type activities, 53rd Street water storage reservoir repair 0.00% 182,739 Business-type activities,Faircrest Street waterline extension 0.00% 1,017,576 $ 11,107,453 * Total permissible borrowings under the loan agreement. - 74 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) Annual debt service requirements to maturity for OPWC loans are as follows: Uhio Yublic Works Commission Loans Year Ending Governmental Activiries Business-Type Activities December 31 Principal Interest Principal Interest 2023 $ 240,695 $ - $ 421,188 $ - 2024 240,694 - 418,491 - 2025 240,694 - 418,491 - 2026 220,172 - 405,247 - 2027 214,650 - 354,501 - 2028 -2032 848,866 - 1,161,137 - 2033 -2037 598,250 - 396,999 - 2038 -2042 413,957 - 93,748 - 2043 -2047 66,947 - - - 2048 -2051 31,532 - - - Total $ 3,ll6,457 $ - $ 3,669,802 $ - For the governmental activities,the schedule above does not include the 30t''Street resurfacing loan as this loan is not closed as of December 31,2022 and a final amortization schedule is not available. For the business-type activiries, the schedule above does not include the Cleveland Ave NW Water Main loan as this loan is not closed as of December 31,2022 and a final amortization schedule is not available. Ohio Water Develoument Authoritv(OWDA)Loans The City entered into various loan agreements with the OWDA for the purpose of improving and expanding both the water and the water pollution control operations. The City has pledged future revenues, net of certain operating expenses, to repay these loans in the water operating fund and sewer operating fund. The debt is payable from net revenues and is payable through 2035. Annual principal and interest payments on the debt issues are expected to require 27.03 percent of net revenues for water and 42.17 percent of net revenues for sewer. The total principal and interest remaining to be paid on the debt is $22,250,475 for water and$0 for sewer not including open loans. Principal and interest paid for the current year and total net revenues were $2,671,593 and$9,885,288,respecrively, for water and $5,638,266 and$13,369,024,respectively,for sewer. The City has entered into an agreement with the City of North Canton and the Stark County Board of Commissioners whereby, these entities will reimburse the City for a portion of its Sewer OWDA debt service payments based upon assigned percentage of design capaciry of thirty-nine million gallons per day in the advanced secondary treatment facilities (known as the Water Reclamation Facility). The agreement is amended as design capacity needs change for the parties involved. For 2013,the assigned percentages were 50.85%for the Ciry,47.00%for Stark County and 2.15% for the Ciry of North Canton. In accordance with the agreement,reimbursements to the City will not be due more often than the City's repayments under the OWDA loan debt service schedules. The City is obligated to make all debt service payments on the OWDA loans and subsequently bills the City of North Canton and Stark County for their assigned percentage of Sewer OWDA loans debt service as stipulated in the agreements. OWDA loans are directborrowings that have terms negotiated directly between the City and the OWDA and are not offered for public sale. In the event of default,the OWDA may declare the full amount of the then unpaid original loan amount to be immediately due and payable and/or require the City to pay any fines,penalties,interest,or late charges associated with the default. - 75 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) The City has both closed and open OWDA loans at December 31, 2022. The closed loans are those that OWDA has made the final disbursements and the Ciry has final amortization schedules for the future debt payments. The following is the City's closed OWDA loans: Purpose Interest Rates Original Amount Governmental activities,Harmont Avenue NE improvement 3.25% $ 60,100 Business-type activities,Plain Township waterline extension(SSth St) 4.74% 1,653,459 Business-type activities,Lake Local Schools waterline 4.64% 1,980,974 Business-type activities,Osnaburg water main eXtension 3.62% 1,402,001 Business-type activities, Sugarcreek water plant improvement 3.25% 3,365,682 Business-type activities, South Cleveland Avenue Waterline Ext. 3.25% 37,677 Business-type activities,NW water plant improvement 3.52% 7,094,093 Business-type activities,NE water plant improvement 539% 14,903,080 Business-type activities, Canton south waterline extension 0.00% 101,547 Business-type activities, S Cleveland Ave Waterline Construction 0.00% 523,904 Business-type activities,new water meters 333% 9,414,052 Business-type activities, South waterline extension phase 1 0.00% 1,383,395 $ 41,919,964 During 2022, the Sugarcreek water treatment plant design project (water fund), the Cromer reservoir improvement project (water fund), the phosphorus/nitrogen removal project (sewer fund), and the Allen Ave Sanitary Sewer Replacement project(sewer fund)received OWDA loan proceeds. As of the end of the audit period,the final amount borrowed for these loans had not been determined and no final reconciliation has been completed by OWDA. Due to these issues, no payment schedules were available for either of these loans as well as the WRF phosphorus - MBR equipment project(sewer fund). Consequently,these loans were not included in the yearly schedule shown above nor were they used in calculating the amount due within one year in the schedule that follows. These loans are considered open since final disbursements have not been made. The total amount borrowed and the total permissible borrowing under the loan agreements are as follows: Amount Total Borrowed as Permissible Purpose Interest Rates of 12/31/22 Borrowin�s Business-type activities,WRF phosphorus/nitrogen removal project 3.38% $ 54,349,928 $ 54,383,258 Business-type activities,WRF phosphorus project- MBR equipment 3.39% 27,389,888 30,234,835 Business-type activities,Sugarcreek water treatment plantproject 2.49% 3,396,957 46,956,387 Business-type activities,Allen Ave Saintary Sewer Replacement project 0.00% 9,385 6,335,909 Business-type activities,Cromer reservior improvement construction project 0.00% 297,221 700,850 $ 85,443,379 $ 138,611,239 - 76 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) Annual debt service requirements to maturity for closed OWDA loans are as follows: Ohio Water Development Authority Loans Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2023 $ 2,958 $ 719 $ 1,859,285 $ 492,566 2024 3,055 629 1,896,136 443,639 2025 3,155 537 1,950,190 393,166 2026 3,259 442 2,005,966 341,091 2027 3,365 343 2,013,801 287,370 2028 -2032 8,903 405 7,572,850 730,641 2033 -2035 - - 2,166,008 97,766 Total $ 24,695 $ 3,075 $ 19,464,236 $ 2,786,239 General Obligation Bonds On May 18,2022, the City issued$17,317,500 in Series 2022 Various Purpose Improvement Bonds. The bonds were issued to(1)pay the costs of refunding the City's outstanding Various Purpose Notes Series 2022,(2)pay the costs of improving the City's Service Center,(3)to pay the costs of renovating and refurbishing a City salt dome,and(4)to pay the costs of designing, engineering, constructing, furnishing and equipping a building for sanitation operation of the Ciry's service department. The bonds were split$7,249,186(note refunding, salt dome, and service center projects)to governmental activiries and$10,068,314(sanitation building project)business-rype activiries.The Series 2022 Various Purpose Bonds matures on December 1, 2037 and carries an interest rate of 3.14%. Principal payments are due December 1 of each year and interest payments are due June 1 and December 1 of each year.Payments are made from the capital projects fund and refuse enterprise fund. Annual debt service requirements to maturity for the General Obligation Bonds are as follows: General Obligation Bonds Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2023 $ 385,781 $ 227,624 $ 535,807 $ 316,145 2024 397,895 215,511 552,631 299,321 2025 410,389 203,017 569,984 281,968 2026 423,274 190,132 587,881 264,071 2027 436,565 176,840 606,340 245,611 2028 -2032 2,397,259 669,764 3,329,530 930,227 2033 -2037 2,798,023 269,004 3,886,141 373,617 Total $ 7,249,186 $ 1,951,892 $ 10,068,314 $ 2,710,960 - 77 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) Financed Purchase Note Pavable In a prior year, the City entered into financed purchase note payable agreements with Santander Bank to finance the purchase of new sanitation cans.Payments are made from the refuse enterprise fund. The total amount of the financed purchase note payable is$1,029,910. The financed purchase note payable agreement bears an interest rate of 3.50%. In a prior, the City entered into financed purchase note payable agreements with Huntington Bank to finance the purchase of police cruisers, an ambulance, and a street sweeper. Payments made under the financed purchase note payable agreement have been reclassified and are reflected as debt service expenditures in the financial statements for the governmental funds. These expenditures are reported as function expenditures on the budgetary statements. The total amount of the financed purchase note payable is$669,803. The financed purchase note payable agreement bears an interest rate of 3.50%. In a prior year,the City entered into financed purchase note payable agreements with Huntington Bank to finance the purchase of a new phone system. Payments made under the financed purchase note payable agreement have been reclassified and are reflected as debt service expenditures in the financial statements for the governmental funds. These expenditures are reported as function expenditures on the budgetary statements. The total amount of the financed purchase note payable is$766,872. The financed purchase note payable agreement bears an interest rate of 3.50%. In a prior year,the City entered into financed purchase note payable agreements with Huntington Bank to finance the purchase of a new fire truck. Payments made under the financed purchase note payable agreement have been reclassified and are reflected as debt service expenditures in the financial statements for the governmental funds. These expenditures are reported as function expenditures on the budgetary statements. The total amount of the financed purchase note payable is$1,262,799. The financed purchase note payable agreement bears an interest rate of 3.50%. In a prior year,the Ciry entered into financed purchase note payable agreements with Huntington Bank to finance the purchase of a fire vehicle. Payments made under the financed purchase note payable agreement have been reclassified and are reflected as debt service expenditures in the financial statements for the governmental funds. These expenditures are reported as function expenditures on the budgetary statements. The total amount of the financed purchase note payable is$38,216. The financed purchase note payable agreement bears an interest rate of 3.50%. In a prior year,the City entered into financed purchase note payable agreements with Huntington Bank to finance the purchase of an upgraded phone system for the City's income tax department. Payments made under the financed purchase note payable agreement have been reclassified and are reflected as debt service expenditures in the financial statements for the governmental funds. These expenditures are reported as function expenditures on the budgetary statements. The total amount of the financed purchase note payable is $24,987. The financed purchase note payable agreement bears an interest rate of 4.13%. - 78 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) Annual debt service requirements to maturity for the Financed Purchase Note Payable are as follows: Financed Purchase Note Payable Year Ending Governmental Acrivities Business-Type Activities December 31 Principal Interest Principal Interest 2023 $ 576,239 $ 29,989 $ 142,764 $ 21,862 2024 257,888 11,208 146,891 17,735 2025 263,434 5,664 151,137 13,489 2026 - - 155,506 9,120 2027 - - 160,003 4,625 Total $ 1,097,561 $ 46,861 $ 756,301 $ 66,831 THIS SPACE IS LEFT INTENIONALLY BLANK - 79 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) Due to the implementation of GASB Statement No. 87(see Note 3.A for detail),the City has reported obligations for leases payable which are reflected in the schedules below. Changes in long-term obligations of the Ciry during the year ended December 31,2022 were as follows. Restated Outstanding Outstanding Due Within 12/31/21 Additions Reductions 12/31/22 One Year Business-rype activities OPWC loans(direct borrowing): Water operations: 2012 Harrisburg waterline 0% $ 6,311 $ - $ (6,311) $ - $ - 2014 37th Street waterline project 0% 105,392 - (23,420) 81,972 23,420 2016 Westmoreland Water Main 412,500 - (75,000) 337,500 75,000 2016 53rd St Water Storage Reservoir Repair 128,992 - (21,499) 107,493 21,499 2017 Avondale Water Main Replacement 109,254 - (13,657) 95,597 13,657 2015 Faircrest Street waterline extension 867,931 - (59,858) 808,073 59,858 2018 Sugar Creek Water treatment plant 693,748 - (37,500) 656,248 37,500 2019 RidgewoodPhase 1 Part] 445,529 - (52,415) 393,114 52,415 2019 Avondale Water Main Replacement 2 75,787 - (9,474) 66,313 9,474 2020 44th St Waterline improvements 203,330 - (22,592) 180,738 22,592 2020 33rd St Watermain replacement 240,612 - (28,307) 212,305 28,307 2022 Edgefield Phase 1 - 334,016 - 334,016 33,402 2022 Edgefield Phase 2 - 383,001 - 383,001 38,300 2022 Cleveland Ave NW Water Main - 211,906 - 211,906 - Sewer operations: 2014 37th Street sewerline project 13,801 - (3,066) 10,735 3,067 2003 Harmont pump station 8,092 - (5,395) 2,697 2,697 Total OPWC loans 3,311,279 928,923 (358,494) 3,881,708 421,188 OWDA loans(direct borrowing): Water operations: 2001 Plain Township waterline extension(SSth St)4.74% 62,941 - (62,941) - - 2002 Lake School waterline 4.64% 147,914 - (147,914) - - 2007 Osnaburg water main extension 3.62% 491,900 - (82,371) 409,529 85,380 2007 SC water plant improvements 3.25% 1,220,501 - (171,532) 1,048,969 177,152 2008 NW water plant improvements 3.52% 2,668,399 - (294,262) 2,374,137 304,711 2009 NE water plant improvements 5.39% 7,923,724 - (705,845) 7,217,879 723,711 2013 water meter planning and design 3.33% 7,209,393 - (411,812) 6,797,581 425,640 2017 South Cleveland Avenue Waterline Ext 3.25% 16,147 - (10,765) 5,382 5,382 2018 S Cleveland Ave Waterline Construction 0.00°/ 436,587 - (34,927) 401,660 34,927 2019 South Waterline Ext 0.00% 30,465 - (20,309) 10,156 10,156 2019 South Waterline Ext Phase 1 0.00% 1,291,169 - (92,226) 1,198,943 92,226 2020 Sugarcreek WTP Design 0% 2,051,593 1,345,364 - 3,396,957 - 2020 Cromer reservior improvements 0% 196,752 93,991 (23,999) 266,744 - Sewer operations: 2022 Allen Ave Sanitary Sewer Replacement 0% - 9,385 - 9,385 - 2010 WRF phosphorus/nitrogen removal project 3.38% 43,924,039 35,346 (2,295,355) 41,664,030 3,565,687 2014 WRF phosphorus-MBR equipment 3.39% 21,501,490 - (],301,170) 20,200,320 2,021,367 Total OWDA loans 89,173,014 1,484,086 (5,655,428) 85,001,672 7,446,339 - 80 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) Restated Outstanding Outstanding Due Within 12/31/21 Additions Reductions 12/31/22 One Year Business-type activities(continued) General Obligation Bonds Series 2022 Various Purpose Improvement Bonds 10,068,314,3.14% - 10,068,314 - 10,068,314 535,807 Net pension liabiliry 12,011,650 - (4,367,373) 7,644,277 - Compensated absences 1,837,003 383,318 (409,466) 1,810,855 359,129 Financed purchase note payable 895,055 - (138,754) 756,301 142,764 Leasepayable 17,507 - (3,372) 14,135 3,825 Total business-rype activities $ 107,245,508 $ 12,864,641 $ (10,932,887) $ 109,177,262 $ 8,909,052 Restated Outstanding Outstanding Due Within 12/31/21 Additions Reductions 12/31/22 One Year Governmental activities Series 2022,Various Purpose Improvement bonds,$7,249,186,3.14% $ - $ 7,249,186 $ - $ 7,249,186 $ 385,781 2014 SIB loan 3.0%(direct borrowing) 976,500 - (381,899) 594,601 393,442 OWDA loan(direct borrowing): 2010 Harmont Avenue sewer extension 3.25% 27,559 - (2,864) 24,695 2,958 OPWC loans(direct borrowing): 2014 SSth Street NE storm sewer 316,632 - (13,767) 302,865 13,767 2015 Mahoning Road Corridor 437,316 - (21,857) 415,459 21,857 2016 30th Street Resurfacing 383,522 - - 383,522 - 2004 Market Avenue sewer 60,000 - (15,000) 45,000 15,000 2014 37th Street road project 49,704 - (11,046) 38,658 11,046 2017 Overbrook NW Storm Sewer 48,720 - (3,045) 45,675 3,045 2017 38th Street Waterline roadway replacement project 433,684 - (54,210) 379,474 54,210 2019 Mahoning Road Improvement Ph 2 900,000 - (45,000) 855,000 45,000 2019 47th St NW Storm Sewer 89,444 - (4,969) 84,475 4,969 2019 Cirywide Traffic Signal Upgrades 140,840 - (7,042) 133,798 7,042 2019 47th St/Packard Ave Storm Sewer 236,500 - (7,884) 228,616 7,884 2019 RidgewoodPhase ] Part2 434,362 - (32,]75) 402,187 32,175 2009 30th Street NE storm sewer 209,950 - (24,700) 185,250 24,700 Total OPWC loans 3,740,674 - (240,695) 3,499,979 240,695 Compensated absences 6,455,542 997,912 (1,302,394) 6,151,060 1,465,676 Note payable(directborrowing) 4,500,000 4,100,000 (7,700,000) 900,000 900,000 Net pension liabiliry 79,687,618 - (11,792,651) 67,894,967 - Net OPEB liabiliry 9,400,168 517,109 - 9,917,277 - Financed purchase note payable 1,655,662 - (558,101) 1,097,561 576,239 Leases payable 44,098 145,379 (9,907) 179,570 11,843 Total governmental activities 106,487,821 13,009,586 (21,988,511) 97,508,896 3,976,634 Totals $ 213,733,329 $ 25,874,227 $ (32,921,398) $ 206,686,158 $ 12,885,686 - 81 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) The above schedule of long-term obligations differs from liabilities reported on the government-wide statement of net position as a result of the compensated absences payable associated with the business-rype acrivities being included with the long-term liabilities of the governmental activities. The compensated absences claim internal service fund is responsible for the payment of both the governmental and business-type compensated absences liabiliries. Since governmental activities are the primary user of the internal service funds, GAAP requires that the long-term liabiliries of the internal service fund be reported among the governmental activities. A reconciliation of the schedule of long-term obligations to the statement of net position at December 31,2022 were as follows: Govemmental Business-Type Activities Activities Total Long-term obligations per schedule above $ 97,508,896 $ 109,177,262 $ 206,686,158 Consolidation of compensated absences claim internal service fund into governmental activities 1,810,855 (1,810,855) - Long-term liabilities on government-wide statement of net position $ 99,319,751 $ 107,366,407 $ 206,686,158 Of the $1,810,855 of business-type compensated absences to be paid from the compensated absences claim internal service fund(which is consolidated with the governmental activities on the statement of net posirion), $359,129 is due within one year. Notes Pavable On April 21,2022,the City issued$3,200,000 of long-term notes payable for the purpose ofpaying the cost of acquiring, constructing, reconstructing and improving City buildings, including, without limitation, the replacement of the City Hall roof,the Civic Center roof and improvements to other City facilities. The notes bear an interest rate not to exceed 6%. These notes were retired by the issuance of the Series 2022,Various Improvement Bonds. On April 1, 2022, the City issued a $1,200,000 Historic Hercules note payable for the purpose of renovating and redeveloping the former Hercules Motor Company facility into market rate residential apartments and related facilities. This note matures on April 1,2023. Of this total, $300,000 is considered a short-term note payable(see Note ll) and $900,000 is considered a long-term note payable. The long-term note payable represents the portion of the Historic Hercules note issue that was refinanced subsequent to year-end with a new maturity date greater than one year from the date of the financial statements(see Note 11). The long-term note payable matures April 1,2024. The long-term notes are backed by the full faith and credit of the City. The notes were a direct placement with terms negotiated directly with the investor and were not offered for public sale. Net Pension Liabilitv and Net OPEB Liability The City pays obligations related to employee compensation from the fundbenefitting from their services.For the City's governmental activities, any net pension liability would be primarily liquidated by the general fund. See Notes 13 and 14 for further information. Lease Pavable See Note 10 for further detail on the City's lease payables. - 82 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 9-LONG-TERM OBLIGATIONS-(Continued) Legal Debt Margin The City's overall legal debt margin was $95,358,427 and an unvoted debt margin of$46,551,220 at December 31, 2022. NOTE 10-LEASES PAYABLE The City has entered into lease agreements for the use of right to use equipment and a building. Due to the implementation of GASB Statement No. 87,the City will report an intangible capital asset and corresponding liability for the future scheduled payments under the leases. The lease payments will be paid from the general fund,community and economic development fund,the nonmajor governmental funds and the nonmajor enterprise fund. The City has entered into lease agreements with varying years and terms as follows: Lease Lease Commencement End Payment Purpose Date Years Date Method Building space 2022 30 2052 Monthly Copiers 2021 5 2026 Monthly The following is a schedule of future lease payments under the lease agreements: Leases Payable Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2023 $ 11,843 $ 6,672 $ 3,825 $ 699 2024 12,569 5,946 4,045 478 2025 13,345 5,170 4,280 244 2026 10,882 4,383 1,985 30 2027 3,731 4,054 - - 2028 -2032 18,954 18,546 - - 2033 -2037 22,171 15,329 - - 2038 -2042 25,935 11,565 - - 2043 -2047 30,337 7,162 - - 2048 -2052 29,803 2,072 - - Total $ 179,570 $ 80,899 $ 14,135 $ 1,451 - 83 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 11 -NOTES PAYABLE The following is a summary of short-term note transactions for the year ended December 31, 2022 reflected in the general fund on the fund financial statements and in the governmental acrivities on the government-wide financial statements: Balance Balance 12/31/2021 Issued Retired 12/31/2022 Notes Payable: Civil Suit Settlement $ 700,000 $ - $ (700,000) $ - Historic Hercules Project 125,000 300,000 (125,000) 300,000 Hall of Fame Village Project 3,250,000 2,750,000 (3,250,000) 2,750,000 $ 4,075,000 $ 3,050,000 $ (4,075,000) $ 3,050,000 The civil suit settlement note was issued on June 24, 2021 and was retired at December 31,2022. The purpose of the issuance was to pay for the settlement of a civil suit in which the Ciry agreed to pay the plaintiff$1,800,000. The Hall of Fame Village project note was issued on December 1,2022 and had an outstanding balance of$2,750,000 at December 31,2022. This note was issued to refinance notes previously issued on December 1,2021 which matured December 1, 2022. The note was issued at an interest rate of 6% and matures on December 1, 2023. The note was issued in anticipation of a long-term bond financing for improvements to Hall of Fame Village related to economic development. On April 1,2022,the City issued a$1,200,000 Historic Hercules note payable to refinance notes previously issued on April 1,2021 which matured April 1,2022.The original issue was issued for the purpose of renovating and redeveloping the former Hercules Motor Company facility into market rate residential apartments and related facilities. Of this total, $300,000 is considered a short-term note payable and $900,000 is considered a long-term note payable (see Note 9). The short-term note payable represents the portion of the Historic Hercules note issue that will be retired when the notes are refinanced on April 1, 2023 (see Note 25 for detail). All short-term notes were backed by the full faith and credit of the Ciry and mature within one year. The short-term note liability is reflected in the General Fund, the fund which received the proceeds. The short-term notes were issued in anticipation of long-term bond financing and will be refinanced until such funds are issued. NOTE 12-BUDGETARY BASIS OF ACCOUNTING While the City is reporting financial position,results of operations and changes in fund balance on the basis of generally accepted accounting principles (GAAP), the budgetary basis as provided by law is based upon accounting for certain transactions on a basis of cash receipts,disbursements and encumbrances. The statement of revenues,expenditures and changes in fund balances - budget (non-GAAP basis) and actual presented for the general fund and community and economic development fund are presented on the budgetary basis to provide a meaningful comparison of actual results with the budget. The major differences between the budget basis and GAAP basis are as follows: 1. Revenues and other sources are recorded when received in cash(budget)as opposed to when susceptible to accrual (GAAP). 2. Expenditures and other uses are recorded when paid in cash (budget) as opposed to when the liability is incurred (GAAP). - 84 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 12-BUDGETARY BASIS OF ACCOUNTING-(Continued) 3. Encumbrances are treated as expenditures (budget) rather than restricted, committed, or assigned fund balance (GAAP). 4. Unreported cash (cash on hand) represents amounts received but not included on the budget basis operaring statements. These amounts are included on the GAAP basis operating statement. 5. Proceeds from manuscript debt are an other financing source (budget) as opposed to a balance sheet transaction (GAAP basis). The following table summarizes the adjustments necessary to reconcile the GAAP basis statements to the budgetary basis statements for the general fund,the community and economic development fund,and the ARPA fund. Net Change in Fund Balance Community and General Economic Fund Development Fund ARPA Budget basis $ (6,090,763) $ (563,506) $ (538,809) Net adjustment for revenue accruals (9,485,529) (864,418) (18,437,646) Net adjustment for expenditure accruals 6,493,561 (32,110) (1,836,992) Net adjustment for other financing sources(uses)accruals (62,716) 3,100 - Funds budgeted elsewhere (498,838) - - Encumbrances 5,981,774 2,221,498 20,813,447 GAAP basis $ (3,662,511) $ 764,564 $ - NOTE 13-DEFINED BENEFIT PENSION PLANS The Statewide retirement systems provide both pension benefits and other postemployment benefits(OPEB). Net Pension Liability/Asset and Net OPEB Liabiliry/Asset The net pension liability/asset and the net OPEB liability/asset reported on the statement of net position represents a liability or asset to employees for pensions and OPEB,respectively. Pensions and OPEB are a component of exchange transactions—between an employer and its employees—of salaries and benefits for employee services. Pensions and 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 obligarion 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/asset and the net OPEB liability/asset represent the City's proportionate share of each pension/OPEB plan's collective actuarial present value of projected benefit payments attributable to past periods of service, net of each pension/OPEB plan's fiduciary net position. The net pension/OPEB liability/asset 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. - 85 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) Ohio Revised Code limits the City's obligation for this liability to annually required payments. The City cannot control benefit terms ar the manner in which pensions/OPEB are financed; however, the City does receive the benefit of employees' services in exchange for compensation including pension and OPEB. GASB 68/75 assumes the liability/asset is solely the obligation of the employer,because(1)they benefit from employee services; and(2) State statute requires funding to come from these employers. All pension contributions to date have come solely from these employers(which also includes pension costs paid in the form of withholdings from employees). The retirement systems may allocate a portion of the employer contributions to provide for these OPEB benefits. In addition,health care plan enrollees pay a portion of the health care costs in the form of a monthly premium. State statute requires the retirement systems to amortize unfunded pension liabilities within 30 years. If the pension amortization period exceeds 30 years, each retirement system's board must propose corrective action to the State legislature. Any resulting legislative change to benefits or funding could significantly affect the net pension/OPEB liability. Resulting adjustments to the net pension/OPEB liability would be effective when the changes are legally enforceable. The Ohio Revised Code permits,but does not require,the retirement systems to provide health care to eligible benefit recipients. The proportionate share of each plan's unfunded benefits is presented as a long-term net pension/OPEB liability/asset on the accrual basis of accounting. Any liability for the contractually-required pension/OPEB contribution outstanding at the end of the year is included in due to other governments on both the accrual and modified accrual bases of accounting. The remainder of this note includes the pension disclosures. See Note 14 for the OPEB disclosures. Plan Description-Ohio Public Employees Retirement System(OPERS) Plan Description-City employees,other than full-time police and firefighters,participate in the Ohio Public Employees Retirement System(OPERS). OPERS administers three separate pension plans. The traditional pension plan is a cost- sharing,multiple-employer defined benefit pension plan. The member-directed plan is a defined contribution plan and the combined plan is a combination cost-sharing,multiple-employer defined benefit/defined contribution pension plan. Participating employers are divided into state, local, law enforcement and public safery divisions. While members in the state and local divisions may participate in all three plans, law enforcement and public safety divisions exist only within the tradirional plan. OPERS provides retirement, disability, survivor and death benefits, and annual cost of living adjustments to members of the traditional and combined plans. Authority to establish and amend benefits is provided by Chapter 145 of the Ohio Revised Code. OPERS issues a stand-alone financial report that includes financial statements,required supplementary information and detailed information about OPERS' fiduciary net position that may be obtained by visiting https://www.opers.or,�/financial/reparts.shtml, by writing to the Ohio Public Employees Retirement System, 277 East Town Street, Columbus,Ohio 43215-4642,or by calling 800-222-7377. - 86 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) Senate Bill(SB)343 was enacted into law with an effective date of January 7,2013. In the legislation,members in the traditional and combined plans were categorized into three groups with varying provisions of the law applicable to each group. The following table provides age and service requirements for retirement and the retirement formula applied to final average salary (FAS) for the three member groups under the tradirional and combined plans as per the reduced benefits adopted by SB 343 (see OPERS Annual Report referenced above for additional information, including requirements for reduced and unreduced benefits): Group A Group B Group C Eligible to retire priar to 20 years of service credit priar to Members not in other Groups January 7,2013 or five years January 7,2013 or eligible to retire and members hired on or after after January 7,2013 ten years after January 7,2013 January 7,2013 State and Local State and Local State and Local Age and Service Requirements: Age and Service Requirements: Age and Service Requirements: Age 60 with 60 months of service credit Age 60 with 60 months of service credit Age 57 with 25 years of service credit ar 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 Traditional Plan Formula: Traditional Plan Formula: Traditional Plan Forruula: 2.2%of FAS mukiplied by years of 2.2%of FAS multiplied by years of 2.2%of FAS multiplied by years of service for the first 30 years and 2.5% service for the first 30 years and 2.5°/o service for the first 35 years and 2.5% for service years in excess of 30 for service years in excess of 30 for service years in excess of 35 Combined Plan Formula: Combined Plan Formula: Combined Plan Formula: 1%of FAS multiplied by years of 1%of FAS multiplied by years of 1%of FAS multiplied by years of service for the first 30 years and 1.25% service far the first 30 years and 1.25% service far the first 35 years and 1.25% for service years in excess of 30 for service years in excess of 30 for service years in excess of 35 Final Average Salary (FAS) represents the average of the three highest years of earnings over a member's career for Groups A and B. Group C is based on the average of the five highest years of earnings over a member's career. Members who retire before meeting the age and years of service credit requirement far 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 traditional plan benefit recipient has received benefits for 12 months,current law provides for an annual cost of living adjustment(COLA). This COLA is calculated on the base retirement benefit at the date of retirement and is not compounded. Members retiring under the combined plan receive a cost—of—living adjustment on the defined benefit portion of their pension benefit. For those who retired prior to January 7,2013,the cost of living adjustment is 3 percent. For those retiring subsequent to January 7,2013,beginning in calendar year 2019,current law provides that the COLA will be based on the average percentage increase in the Consumer Price Index,capped at 3.00%. - 87 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) Defined contribution plan benefits are established in the plan documents,which may be amended by the Board.Member- directed plan and combined plan members who have met the retirement eligibility requirements may apply for retirement benefits. The amount available for defined contribution benefits in the combined plan consists of the member's conh-ibutions plus or minus the investment gains or losses resulring from the member's investment selections. 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 resulring from the member's investment selections. Combined plan members wishing to receive benefits must meet the requirements for both the defined benefit and defined contribution plans. Member-directed participants must have attained the age of 55,have money on deposit in the defined contribution plan and have terminated public service to apply for retirement benefits. The amount available for defined contribution benefits in the member-directed plan consists of the members' contributions, vested employer contributions and investment gains or losses resulting from the members' investment selections. Employer contributions and associated investment earnings vest over a five-year period, at a rate of 20 percent each year.At retirement,members may select one of several distribution options for payment of the vested balance in their individual OPERS accounts. Options include the annuitization of the benefit(which includes joint and survivor options),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 oprions. When members choose to annuitize their defined contribution benefit,the annuitized portion of the benefit is reclassified to a defined benefit. Beginning in 2022,the Combined Plan will be consolidated under the Traditional Pension Plan(defined benefit plan) and the Combined Plan option will no longer be available for new hires beginning in 2022. Funding Policy-The Ohio Revised Code (ORC)provides statutory authority for member and employer contributions as follows: State and Local 2022 Statutory Maximum Contribution Rates Employer 14.0 % Employee * 10.0 % 2022 Actual Contribution Rates Employer: Pension 14.0 % Post-employment Health Care Benefits ** 0.0 % Total Employer 14.0 % Employee 10.0 % * This rate is determined by OPERS'Board and has no ma�mum rate established by ORC. ** This employer health care rate is for the traditional and combined plans. The employer contribution for the member-directed plan is 4.00%. Employer contribution rates are actuarially determined and are expressed as a percentage of covered payroll. The Ciry's contractually required contribution for the Traditional Pension Plan, the Combined Plan and Member- Directed Plan was$4,685,157 for 2022. Of this amount, $208,852 is reported as due to other governments. - 88 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) Plan Description-Ohio Police&Fire Pension Fund(OP&F) Plan Description - City full-rime police and firefighters participate in Ohio Police and Fire Pension Fund(OP&F), a cost-sharing,multiple-employer defined benefit pension plan administered by OP&F. OP&F provides rerirement and disability pension benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by the Ohio State Legislature and are codified in Chapter 742 of the Ohio Revised Code. OP&F issues a publicly available financial report that includes financial information and required supplementary information and detailed information about OP&F fiduciary net position. The report may be obtained by visiting the OP&F website at www.op-£org or by writing to the Ohio Police and Fire Pension Fund, 140 East Town Street, Columbus,Ohio 43215-5164. Upon attaining a qualifying age with sufficient years of service, a member of OP&F inay retire and receive a lifetime monthly pension. OP&F offers four types of service retirement:normal, service commuted,age/service commuted and actuarially reduced. Each type has different eligibility guidelines and is calculated using the member's average annual salary. The following discussion of the pension formula relates to normal service retirement. For members hired after July 1,2013,the minimum retirement age is 52 for normal service rerirement 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 2.50% for each of the first 20 years of service credit, 2.00%for each of the next five years of service credit and 1.50%for each year of service credit in excess of 25 years. The maximum pension of 72.00%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 OP&F benefits for at least one year may be eligible for a cost-of-living allowance adjustment. The age 55 provision for receiving a COLA does not apply to those who are receiving a permanent and total disability benefit, surviving beneficiaries, and statutory survivors. Members participating in the DROP program have separate eligibility requirements related to COLA. The COLA amount for members who have 15 or more years of service credit as of July 1,2013,and members who are receiving a pension benefit that became effective before July 1, 2013, will be equal to 3.00% of the member's base pension benefit. The COLA amount for members who have less than 15 years of service credit as of July 1,2013,and members whose pension benefit became effecrive on or after July 1,2013, will be equal to a percentage of the member's base pension benefit where the percentage is the lesser of 3.00°/o or the percentage increase in the consumer price index,if any,over the twelve-month period that ends on the thirtieth day of September of the immediately preceding year,rounded to the nearest one-tenth of one percent. 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. - 89 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-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 Maacimum Contribution Rates Employer 19.50 % 24.00 % Employee 12.25 % 12.25 % 2022 Actual Contribution Rates Employer: Pension 19.00 % 23.50 % Post-employment Health Care Benefits 0.50 % 0.50 % Total Employer 19.50 % 24.00 % Employee 12.25 % 12.25 % Employer contribution rates are expressed as a percentage of covered payroll. The City's contractually required contribution to OP&F was$4,868,423 for 2022. Of this amount, $199,470 is reported as due to other governments. Net Pension Liabilities/Assets, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The net pension liability and net pension asset for OPERS was measured as of December 31,2021,and the total pension liability or asset used to calculate the net pension liability or asset was determined by an actuarial valuation as of that date.OP&F's total pension liability was measured as of December 31,2021,and was determined by rolling forward the total pension liability as of January 1,2021,to December 31,202 L The City's proportion of the net pension liability or asset was based on the City's share of contriburions to the pension plan relative to the contributions of all participating entities. Following is information related to the proporrionate share and pension expense: OPERS- OPERS- OPERS- Member- Traditional Combined Directed OP&F Total Proportion of the net pension liability/asset prior measurement date 0.21081500% 022982800% 0.20047200% 0.88721310% Proportion of the net pension liability/asset current measurement date 0.21853200% 0.25466100% 0.19015500°/o 0.90479000% Change in proportionate share 0.00771700% 0.02483300% -0.01031700% 0.01757690% Propartionate share of the net pensionliability $ 19,013,198 $ - $ - $ 56,526,046 $ 75,539,244 Proportionate share of the net pension asset - 1,003,378 31,495 - 1,034,873 Pension expense (1,948,272) (36,204) (5,055) 2,569,532 580,001 - 90 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-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 - OPERS- Member- Traditional Combined Directed OP&F Total Deferred outflows of resources Differences between expected and actual experience $ 969,265 $ 6,225 $ 31,140 $ 1,629,883 $ 2,636,513 Changes of assumprions 2,377,581 50,425 1,058 10,330,535 12,759,599 Changes in employer's proportionate percentage/ difference between employer contriburions 1,511,135 - - 1,329,937 2,841,072 Contributions subsequent to the measurement date 4,398,146 174,563 112,448 4,868,423 9,553,580 Total deferred outflows of resources $ 9,256,127 $ 231,213 $ 144,646 $ 18,158,778 $ 27,790,764 OPERS - OPERS- OPERS- Member- Traditional Combined Directed OP&F Total Deferred inflows of resources Differences between expected and actual eaperience $ 417,008 $ 112,221 $ - $ 2,938,577 $ 3,467,806 Net difference between projected and actual earnings onpensionplaninvestments 22,615,510 215,109 7,176 14,820,259 37,658,054 Changes in employer's proportionate percentage/ difference between employer contributions 243,468 - - 1,571,249 1,814,717 Total deferred inflows ofresources $ 23,275,986 $ 327,330 $ 7,176 $ 19,330,085 $ 42,940,577 $9,553,580 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/increase to the net pension liability/asset in the year ending December 31,2023. - 91 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: OPERS- OPERS- OPERS - Member- Traditional Combined Directed OP&F Total Year Ending December 31: 2023 $ (1,987,842) $ (65,936) $ 3,129 $ (546,542) $ (2,597,191) 2024 (7,514,737) (91,148) 2,331 (4,445,407) (12,048,961) 2025 (5,317,820) (59,785) 2,799 (1,320,800) (6,695,606) 2026 (3,597,606) (44,196) 2,924 (967,384) (4,606,262) 2027 - (5,861) 3,863 1,240,403 1,238,405 Thereafter - (3,754) 9,976 - 6,222 Total $ (18,418,005) $ (270,680) $ 25,022 $ (6,039,730) $ (24,703,393) 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. THIS SPACE IS LEFT INTENIONALLY BLANK -92 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-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 was determined by an actuarial valuation as of December 31, 2021,using the following actuarial assumptions applied to all periods included in the measurement in accordance with the requirements of GASB 67. Key methods and assumptions used in the latest actuarial valuarion,reflecting experience study results,prepared as of December 31,2021, are presented below. Wage inflation Current measurement date 2.75% Prior measurement date 3.25% Future salary increases,including inflation Current measurement date 2.75%to 10.75%including wage inflation Prior measurement date 325%to 10.75°/o including wage inflation COLA or ad hoc COLA Current measurement date Pre 1/7/2013 retirees:3.00%,simple Post 1/7/2013 retirees:3.00%,simple through 2022,then 2.05%sirnple Prior measurement date Pre 1/7/2013 retirees:3.00%,sirnple Post 1/7/2013 retirees:0.50%,sirnple through 2021,then 2.15%sirnple Investmentrate ofreturn Current measurement date 6.90% Prior measurement date 7.20% Actuarial cost method Individual entry age In July 2021,the OPERS Board adopted a change in COLA for Post-January 7,2013 retirees, changing it from 0.50% simple through 2021 then 2.15%simple to 3.00%simple through 2022 then 2.05%simple. Pre-retirement mortality rates are based on 130% of the Pub-2010 General Employee Mortality tables (males and females)for State and Local Government divisions and 170%of the Pub-2010 Safety Employee Mortality tables(males and females)for the Public Safety and Law Enforcement divisions. Post-retirement mortality rates are based on 115% of the PubG-2010 Retiree Mortality Tables (males and females) for all divisions. Post-retirement mortality rates for disabled retirees are based on the PubNS-2010 Disabled Retiree Mortality Tables(males and females)for all divisions. For all of the previously described tables, the base year is 2010 and mortaliry 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. During 2021, OPERS managed investments in three investment portfolios: the Defined Benefit portfolio, the Health Care portfolio and the Defined Contribution portfolio. The Defined Benefit portfolio contains the investment assets of the Traditional Pension Plan, the defined benefit component of the Combined Plan and the annuitized accounts of the Member-Directed Plan. Within the Defined Benefit portfolio, contributions into the plans are all recorded at the same time, and benefit payments all occur on the first of the month. Accordingly, the money-weighted rate of return is considered to be the same for all plans within the portfolia The annual money-weighted rate of return expressing investment performance,net of investment expenses and adjusted for the changing amounts actually invested,for the Defined Benefit portfolio was a gain of 15.3%for 2021. - 93 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-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 far the benefits provided through the defined benefit pension plans. The long- term expected rate of return on defined benefit investment assets was determined using a building-block method in which best-estimate ranges of expected future real rates ofreturn are developed for each major asset class. These ranges are combined to produce the long-term expected real rate of return by weighting the expected future real rates of return by the target asset allocation percentage, adjusted for inflation. Best estimates of 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: Weighted Average I.ong-Term Expected Target RealRateofReturn Asset Class Allocation (Arithmetic) Fixed income 24.00 % 1.03 % Domestic equities 21.00 3.78 Real estate 11.00 3.66 Private equity 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 °/o Discount Rate-The discount rate used to measure the total pension liability/asset was 6.90%,post-experience study results, for the Traditional Pension Plan, the Combined Plan and Member-Directed Plan. The discount rate used to measure total pension liability prior to December 31,2021 was 7.20%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers are made at the contractually required rates,as actuarially determined. Based on those assumptions,the pension plan's fiduciary net position was projected to be available to make all projected future benefits payments of current plan members. Therefore,the long- term expected rate of return on pension plan investments for the Traditional Pension Plan, Combined Plan and Member-Directed Plan was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Ciry's Proportionate Share of the Net Pension Liability/Asset to Changes in the Discount Rate- The following table presents the proportionate share of the net pension liability/asset calculated using the current period discount rate assumption of 6.90%,as well as what the proportionate share of the net pension liability/asset would be if it were calculated using a discount rate that is one-percentage-point lower (5.90%) or one-percentage-point higher (7.90%)than the current rate: Current 1%Decrease Discount Rate 1%Increase City's proportionate share of the net pension liabiliry(asset): TraditionalPensionPlan $ 50,129,137 $ 19,013,198 $ (6,879,399) Combined Plan (748,704) (1,003,378) (1,202,001) Member-Directed Plan (27,755) (31,495) (34,694) - 94 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) Actuarial Assumptions-OP&F OP&F's total pension liability as of December 31,2021,is based on the results of an actuarial valuation date of January 1,2021, and rolled-forward using generally accepted actuarial procedures. The total pension liability is determined by OP&F's actuaries in accordance with GASB Statement No. 67, as part of their annual valuation. Actuarial valuations of an ongoing plan involve esrimates of the value of reported amounts and assumptions about probability of occurrence of events far into the future. Examples include assumptions about future employment mortality, salary increases, disabilities,retirements and employment terminations. Actuarially determined amounts are subject to continual review and potential modifications,as actual results are compared with past expectations and new estimates are made about the future. Assumptions considered were: withdrawal rates, disability retirement, service retirement, DROP elections, mortality,percent married and forms of the payment,DROP interest rate,CPI-based COLA, investment retums,salary increases and payroll growth. Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuation,prepared as of January 1,2022,are presented below. Valuation date 1/1/21 with actuarial liabilities rolled forward to 12/31/21 Actuarial cost method Entry age normal(level percent ofpayroll) Investmentrate ofreturn C�rrent measurement date 7.50% Prior measurement date 8.00% Projected salary increases 3.75%-10.50% Payroll increases 3.25%per annum,compounded annually,consisting of inflation rate of 2.75%plus productivity increase rate of 0.50% Cost of living adjustments 2.20%per year simple Mortality for non-disabled participants is based on the RP-2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006, adjusted and projected with the Buck Modified 2016 Improvement Scale. Rates for surviving beneficiaries are adjusted by 120%. Age Police Fire 67 or less 77% 68% 68-77 105% 87°/a 78 and up 115% 120% Mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006, adjusted according to the rates in the following table,and projected with the Buck Modified 2016 Improvement Scale. Age Police Fire 59 or less 35% 35% 60-69 60% 45% 70-79 75% 70% 80 and up 100% 90% The most recent experience study was completed for the five-year period ended December 31,2016. - 95 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) 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 and Guidelines.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 calcularing a weighted average of the expected real return premiums for each asset class, adding the projected inflarion 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: Target I.ong TermE�ected AssetClass Allocation RealRateofReturn 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 fiYed income 7.00 3.00 Private credit 5.00 4.50 U.S.inflation linked bonds * 17.00 0.80 Midstreamenergy infrastructure 5.00 5.00 Real assets 8.00 5.90 Gold 5.00 2.40 Private real estate 12.00 4.80 Total 125.00 % Note:assumptions are geometric. * levered 2x OP&F's Board of Trustees has incorporated the risk parity concept into OP&F's asset liability valuation with the goal of reducing equity risk exposure, which reduces overall Total Portfolio risk without sacrificing return and creating a more risk-balanced portfolio based on the relationship between asset classes and economic environments. From the notional portfolio perspective above, the Total Portfolio may be levered up to 125 times due to the application of leverage in certain fixed income asset classes. Discount Rate-The total pension liability was calculated using the discount rate of 7.50%. A discount rate of 8.00% was used in the previous measurement date. 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 eaming were calculated using the longer-term assumed investment rate of return 8.00%. 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. - 96 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 13-DEFINED BENEFIT PENSION PLANS-(Continued) Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - Net pension liabiliry 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%, 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%),or one percentage point higher(8.50%)than the current rate. Current 1%Decrease DiscountRate 1%Increase City's proporrionate share ofthenetpensionliability $ 83,827,339 $ 56,526,046 $33,790,811 NOTE 14-DEFINED BENEFIT OPEB PLANS Net OPEB Liability/Asset See Note 13 for a description of the net OPEB liability/asset. 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, mulriple-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. 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. The health care trust is also used to fund health care for member-directed plan participants, in the form of a Retiree Medical Account (RMA). At rerirement or separation, member directed plan participants may be eligible for reimbursement of qualified medical expenses from their vested RMA balance. - 97 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) Effective January 1, 2022, OPERS discontinued the group plans currently offered to non-Medicare retirees and re- employed retirees.Instead,eligible non-Medicare retirees will select an individual medical plan.OPERS will provide a subsidy or allowance via an HRA allowance to those retirees who meet health care eligibiliry requirements. Retirees will be able to seek reimbursement for plan premiums and other qualified medical expenses. In order to qualify for postemployment health care coverage, age and service retirees under the traditional pension and combined plans must have twenty or more years of qualifying Ohio service credit with a minimum age of 60, or generally 30 years of qualifying service at any age. Health care coverage for disability benefit recipients and qualified survivor benefit recipients is available. Current retirees eligible (or who became eligible prior to January 1, 2022) to participate in the OPERS health care program will continue to be eligible after January 1,2022.Eligibility requirements will change for those retiring after January 1, 2022, with differing eligibility requirements for Medicare retirees and non-Medicare retirees.The health care coverage provided by OPERS meets the definition of an Other Post Employment Benefit(OPEB)as described in GASB Statement 75. See OPERS'Annual Comprehensive Financial Report referenced below for additional information. The Ohio Revised Code permits,but does not require OPERS to provide health care to its eligible benefit recipients. Authority to establish and amend health care coverage is provided to the Board in Chapter 145 of the Ohio Revised Code. Disclosures for the health care plan are presented separately in the OPERS 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 allowing public employers to fund postemployment health care through their contributions to OPERS. When funding is approved by OPERS' Board of Trustees,a portion of each employer's contribution to OPERS is set aside to fund OPERS health care plans. Beginning in 2018, OPERS no longer allocated a portion of its employer contributions to health care for the traditional plan and the combined plan. Employer contribution rates are expressed as a percentage of the earnable salary of active members. In 2022,state and local employers contributed at a rate of 14.00% of earnable salary and public safety and law enforcement employers contributed at 18.10%. These are the maximum employer contribution rates permitted by the Ohio Revised Code. Active member contributions do not fund health care. Each year, the OPERS Board determines the portion of the employer contribution rate that will be set aside to fund health care plans. For 2022, OPERS did not allocate any employer contribution to health care for members in the Traditional Pension Plan and Combined Plan. The OPERS Board is also authorized to establish rules far 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 4.00%. Employer contribution rates are actuarially determined and are expressed as a percentage of covered payroll. The City's contractually required contribution was $44,978 for 2022. Of this amount, $2,005 is reported as due to other governments. Plan Description-Ohio Police&Fire Pension Fund(OP&F) Plan Description — The City contributes to the Ohio Police and Fire Pension Fund (OP&F) sponsored healthcare program, a cost-sharing, multiple-employer defined post-employment health care plan administered by a third-party provider. This program is not guaranteed and is subject to change at any time upon action of the Board of Trustees.On January 1, 2019, OP&F implemented a new model for health care. Under this new model, OP&F provides eligible retirees with a fixed stipend earmarked to pay for health care and Medicare Part B reimbursements. - 98 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) OP&F contracted with a vendor who assists eligible retirees in choosing health care plans that are available where they live(both Medicare-eligible and pre-65 populations). A stipend funded by OP&F is available to these members through a Health Reimbursement Arrangement and can be used to reimburse retirees for qualified health care expenses. A reriree is eligible for the OP&F health care stipend unless they have access to any other group coverage including employer and retirement coverage.The eligibility of spouses and dependent children could increase the stipend amount. If the spouse or dependents have access to any other group coverage including employer or retirement coverage, they are not eligible for stipend support from OP&F. Even if an OP&F member or their dependents are not eligible for a stipend,they can use the services of the third-party administrator to select and enroll in a plan. The stipend provided by OP&F meets the definition of an Other Post Employment Benefit(OPEB)as described in Governmental Accounting Standards Board(GASB) Statement No.75. OP&F inaintains funds for health care in two separate accounts: one account for health care benefits and one account for Medicare Part B reimbursements.A separate health care trust accrual account is maintained for health care benefits under IRS Code Section 115 trust.IRS Code Section 401(h)account is maintained for Medicare Part B reimbursements. The Ohio Revised Code allows,but does not mandate,OP&F to provide OPEB benefits. Authority for the OP&F Board of Trustees to provide health care coverage to eligible participants and to establish and amend benefits is codified in Chapter 742 of the Ohio Revised Code. OP&F issues a publicly available financial report that includes financial information and required supplementary information for the plan. The report may be obtained by visiting the OP&F website at www.op-f�org or by writing to the Ohio Police and Fire Pension Fund, 140 East Town Street,Columbus,Ohio 43215-5164. Funding Policy—The Ohio Revised Code provides for contribution requirements of the participating employers and of plan members to the OP&F defined benefit pension plan. Participating employers are required to contribute to the pension plan at rates expressed as percentages of the payroll of active pension plan members, currently 19.50% and 24.00% of covered payroll for police and fire employer units, respecrively. The Ohio Revised Code states that the employer contribution may not exceed 19.50% of covered payroll for police employer units and 24.00% of covered payroll for fire employer units. Active members do not make contributions to the OPEB Plan. The Board of Trustees is authorized to allocate a portion of the total employer contributions for retiree health care benefits. For 2022,the portion of employer contributions allocated to health care was 0.50% of covered payroll. The amount of employer contributions allocated to the health care plan each year is subject to the Trustees' primary responsibility to ensure that pension benefits are adequately funded. The OP&F Board of Trustees is also authorized to establish requirements for contributions to the health care plan by retirees and their eligible dependents or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected. The City's contractually required contribution to OP&F was $114,485 for 2022. Of this amount, $4,691 is reported as due to other governments. - 99 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) Net OPEB Liabilities/Assets, OPEB Expense, and Deferred Outflows or 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 incorporaring 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 Proportion of the net OPEB liability/asset prior measurement date 021033300% 0.88721310% Proportion of the net OPEB liability/asset current measurement date 0.21780300% 0.90479000% Change in proportionate sl�are 0.00747000% 0.01757690% Proportionate share of the net OPEB liabiliry $ - $ 9,917,277 $ 9,917,277 Proportionate share of the net OPEB asset 6,821,938 - 6,821,938 OPEB expense (5,338,745) 717,510 (4,621,235) At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: OPERS OP&F Total Deferred outflows of resources Differences between expected and actual experience $ - $ 451,146 $ 451,146 Changes of assurnptions - 4,389,691 4,389,691 Changes in employer's proportionate percentage/ difference between employer contributions 555,122 330,102 885,224 Contributions subsequent to the measurement date 44,979 114,485 159,464 Total deferred outflows ofresources $ 600,101 $ 5,285,424 $ 5,885,525 - 100- CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) OPERS OP&F Total Deferred inflows of resources Differences between e�cpected and actual experience $ 1,034,785 $ 1,310,709 $ 2,345,494 Net difference between proj ected and actual earnings on OPEB plan investments 3,252,221 895,861 4,148,082 Changes ofassumptions 2,761,443 1,151,836 3,913,279 Changes in employer's proportionate percentage/ difference between employer contributions 160,782 500,240 661,022 Total deferred inflows ofresources $ 7,209,231 $ 3,858,646 $ 11,067,877 $159,464 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/increase to the net OPEB liability/asset in the year ending December 31,2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: OPERS OP&F Total Year Ending December 31: 2023 $ (4,005,429) $ 314,673 $ (3,690,756) 2024 (1,471,020) 181,675 (1,289,345) 2o2s �no,s93� 222,os9 �488,s34� zo26 �46�,06�� ioi,z66 �36s,goi� 2027 - 239,557 239,557 Thereafter - 253,063 253,063 Total $ (6,654,109) $ 1,312,293 $ (5,341,816) 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 ofhealth care costs for financial reporting purposes are based on the substantive plan(the plan as understood by the employers and plan members) and include the types of coverage provided at the time of each valuation and the historical pattern of sharing of costs between OPERS and plan members. 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. - 101 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) 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 C�rrent measurement date 2.75% Prior Measurement date 325% Projected Salary Increases, including inflation C�rrent measurement date 2.75 to 10.75% including wage inflation Prior Measurement date 3.25 to 10.75% including wage inflation Single Discount Rate: C�rrent measurement date 6.00% Prior Measurement date 6.00% Investment Rate of Return C�trrent measurement date 6.00% Prior Measurement date 6.00°/o Municipal Bond Rate �rrent measurement date 1.84% Prior Measurement date 2.00% Health Care Cost Trend Rate C�rrent measurement date 5.50%initial, 3.50°/o ultimate in 2034 Prior Measurement date 8.50%initial, 3.50%ultimate in 2035 Actuarial Cost Method Individual Entry Age Normal Pre-retirement mortality rates are based on 130% of the Pub-2010 General Employee Mortaliry 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 mortaliry rates are based on 115% of the PubG-2010 Retiree Mortaliry 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 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. - 102 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) During 2021, OPERS managed investments in three investment portfolios: the Defined Benefit portfolio, the Health Care portfolio and the Defined Contribution portfolia The Health Care portfolio includes the assets for health care expenses for the Traditional Pension Plan, Combined Plan and Member-Directed Plan eligible members. Within the Health Care portfolio, contributions into the plans are assumed to be received continuously throughout the year based on the actual payroll payable at the rime contributions are made,and health care-related payments are assumed to occur mid-year.Accordingly,the money-weighted rate of return is considered to be the same far all plans within the portfolio. The annual money-weighted rate of return expressing investment performance,net of investment expenses and adjusted for the changing amounts actually invested,for the Health Care portfolio was a gain of 14.3%for 2021. The allocation of investment assets within the Health Care portfolio is approved by the Board of Trustees as outlined in the annual investment plan. Assets are managed on a total return basis with a long-term objective of continuing to offer a sustainable health care program for current and future retirees. OPERS'primary goal is to achieve and maintain a fully funded status for the benefits provided through the defined pension plans. Health care is a discretionary benefit. The long-term expected rate of return on health care investment assets was determined using a building-block method in which best-estimate ranges of expected future 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. 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: Weightcd Average Long-Term Eapected Target RealRateofReturn Asset Class Allocation (Arithmetic) Fixed Income 34.00 % 0.91 °/a Domestic equities 25.00 3.78 Real Estate Investment Trusts (REITs) 7.00 3.71 International equities 25.00 4.88 Ris k parity 2.00 292 Other investments 7.00 1.93 Total 100.00 % 3.45 % Discount Rate-A single discount rate of 6.00%was used to measure the total OPEB liability on the measurement date of December 31, 2021. A single discount rate of 6.00% was used to measure the total OPEB liabiliry on the measurement date of December 31,2021. Projected benefit payments are required to be discounted to their actuarial present value using a single discount rate that reflects (1) a long-term expected rate of return on OPEB plan investments(to the extent that the health care fiduciary net position is projected to be sufficient to pay benefits),and (2) a 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 the actuarial assumed rate of return on the health care investment portfolio of 6.00% and a municipal bond rate of 1.84%. 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 the year 2121. As a result, the actuarial assumed long-term expected rate of return on health care investments was applied to projected costs through the year 2121, the duration of the projection period through which projected health care payments are fully funded. - 103 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) Sensitivity of the City's Proportionate Share of the Net OPEB Asset to Changes in the Discount Rate-The following table presents the proportionate share of the net OPEB asset calculated using the single discount rate of 6.00%,as well as what the proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is one- percentage-point lower(5.00%)or one-percentage-point higher(7.00%)than the current rate: Current 1%Decrease Discount Rate 1%Increase City's propartionate share of the net OPEB asset $ 4,011,940 $ 6,821,938 $ 9,154,279 Sensitivity of the City's Proportionate Share of the Net OPEB Asset to Changes in the Health Care Cost Trend Rate -Changes in the health care cost trend rate may also have a significant impact on the net OPEB asset. The following table presents the net OPEB asset calculated using the assumed trend rates, and the expected net OPEB asset if it were calculated using a health care cost trend rate that is 1.00%lower or 1.00%higher than the current rate. Retiree health care valuations use a health care cost trend assumption with changes over several years built into that assumption. The near-term rates reflect increases in the current cost of healthcare;the trend starting in 2022 is 5.50%. If this trend continues for future years, the projection indicates that years from now virtually all expenditures will be for health care. A more reasonable alternative is the health care 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%in the most recent valuation. Current Health Care Trend Rate 1%Decrease Assumption 1%Increase Ci _ry's proportionate share of the net OPEB asset $ 6,895,658 $ 6,821,938 $ 6,734,483 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 esrimates of the value of reported amounts and assumptions about probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, salary increases, disabilities,retirements and employment terminations. Actuarially determined amounts are subject to continual review and potential modifications,as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by the employers and plan members)and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employers and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations. Actuarial calculations reflect a long-term perspective. For a newly hired employee,actuarial calculations will take into account the employee's entire career with the employer and also take into consideration the benefits,if any,paid to the employee after termination of employment until the death of the employee and any applicable contingent annuitant. In many cases,actuarial calculations reflect several decades of service with the employer and the payment of benefits after termination. - 104- CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results, are presented below. Valuation Date January 1,2021,with actuarialliabilities rolled forward to December 31,2021 Actuarial Cost Method Entry Age Normal(L,evel Percent of Payroll) Investment Rate of Return Current measurement date 7.50% Prior measurement date 8.00% Projected Salary Increases 3.75°/o to 10.50°/o Payroll Growth 3.25% Single discount rate: Current measurement date 2.84% Prior measurement date 2.96% Cost of Living Adjustments 2.20%simple per year 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%. Age Police Fire 67 or less 77% 68% 68-77 105% 87% 78 and up 115% 120°/o Mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006, adjusted according to the rates in the following table,and projected with the Buck Modified 2016 Improvement Scale. Age Police Fire 59 or less 35% 35% 60-69 60% 45% 70-79 75% 70% 80 and up 100% 90% The most recent experience study was completed for the five-year period ended December 31,2016. The long-term expected rate of return on 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. - 105 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) 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 31,2020,are summarized below: Target L,ong TermF�pected Asset Class Allocation Real Rate ofReturn Cash and cash equivalents 0.00 % 0.00 % Domestic equity 21.00 3.60 Non-US equity 14.00 4.40 Private markets 8.00 6.80 Core fixed income* 23.00 110 High yield fixed income 7.00 3.00 Private credit 5.00 4.50 U.S.inflation linked bonds * 17.00 0.80 Midstreamenergy infrastructure 5.00 5.00 Real assets 8.00 5.90 Gold 5.00 2.40 Private real estate 12.00 4.80 Total 125.00 % Note:assumptions are geometric. * levered 2x OP&F's Board of Trustees has incorporated the risk parity concept into OP&F's asset liability valuation with the goal of reducing equity risk exposure, which reduces overall Total Portfolio risk without sacrificing return, and creating a more risk-balanced portfolio based on their relationship between asset classes and economic environments. From the notional portfolio perspective above, the Total Portfolio may be levered up to 1.25 times due to the application of leverage in certain fixed income asset classes. Discount Rate-For 2021,the total OPEB liability was calculated using the discount rate of 2.84%. For 2020,the total OPEB liability was calculated using the discount rate of 2.96%. 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 7.50%. Based on those assumptions,OP&F's fiduciary net position was projected to not be able to make all future benefit payment of current plan members. Therefore, a municipal bond rate of 2.05%at December 31,2021 and 2.12%at December 31,2020 was blended with the long-term rate of 7.50%,which resulted in a blended discount rate of 2.84%. Sensitivity of the City's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate-Net OPEB liability is sensitive to changes in the discount rate,and to illustrate the potential impact the following table presents the net OPEB liability calculated using the discount rate of 2.84%, 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%),or one percentage point higher(3.84%) than the current rate. Current 1%Decrease Discount Rate 1%Increase City's proportionate share of the net OPEB liability $ 12,466,237 $ 9,917,277 $ 7,822,026 - 106 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 14-DEFINED BENEFIT OPEB PLANS-(Continued) Sensitivity of the City's Proportionate Share of the Net OPEB Liability to Changes in the Health Care Cost TYend 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. NOTE 15-JOINT VENTURES Canton Tomorrow,Inc. The City participates in Canton Tomorrow, Inc., formed under Chapter 1702 of the Ohio Revised Code. Of the 26 member board, the City appoints three members. The degree of control exercised by any participating government is limited to its representation on the board. Canton Tomorrow,Inc., was formed to serve as a catalyst to bring together the vision,initiative and action necessary for the conrinuing revitalization of the City. Continued existence of Canton Tomorrow,Inc.is dependent on the City's continuedparticipation,despite its minimal contribution to the overall budget however,the City does not have an equity interest in Canton Tomorrow,Ina(Agency). The Agency is not accumulating significant financial resources or experiencing fiscal stress,which would cause additional financial benefit or burden to the City. Canton Tomorrow Inc.'s funding comes from a grant given by the City through the Canton Community Improvement Corporation to the Canton Regional Chamber of Commerce. In 2022,the grant was for$175,000. The Chamber of Commerce is responsible for dividing it up amongst its various agencies like Canton Tomorrow, Inc. Additional funding was paid to the Community Improvement Corporation in the forms of Tax Increment Funding for $71,577 and Comprehensive Plan funding far the maintenance and upkeep of the Nationwide Building in the amount of$100,000 and for the l lth Street S.E. Interception and Roadway Improvement Project in the amount of$95,000 for replacing city scales. Complete financial statements can be obtained from Canton Tomorrow,Inc. Downtown Canton Special Improvement District The City participates in the Downtown Canton Special Improvement District(District),formed under Chapter 1710 of the Ohio Revised Code. Of the 13-member board,the City appoints two members. The degree of control exercised by any participating government is limited to its representation on the board. The District was created for the purpose of developing and implementing plans for public improvements and public services. Continued existence of the District is dependent on the City's continued participation;however,the City does not have an equity interest in the District. In 2022, the City contributed $193,841 to the District, which represents 100 percent of total contributions. Complete financial statements can be obtained from the Downtown Canton Special Improvement District. NOTE 16-JOINTLY GOVERNED ORGANIZATIONS Stark Area Regional Transit Authority The City participates in the Stark Area Regional Transit Authority(Authority),which is a jointly governed organization between Stark County and the cities of Canton,Massillon and Alliance. A nine-member board of trustees oversees the operation of the Authority whose purpose is to provide a low cost mass transportation system for Stark County. The City appoints three of the nine members. Each member's control over the operarion of the Authoriry is limited to its representation on the Board. The Board exercises total authority for the day-to-day operations of the Authority,which include budgeting,appropriating,contracting and designating management. The City has no financial responsibility for any of the Authority's liabilities. The City made no monetary contributions to assist in the operational expenses of the Authority during 2022. Complete financial statements may be obtained from the Stark Area Regional Transit Authority. - 107 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 16-JOINTLY GOVERNED ORGANIZATIONS-(Continued) Stark Council of Governments The Stark Council of Governments (SCOG) is a jointly governed organization. SCOG is a regional council of governments formed under Chapter 167 of the Ohio Revised Code. Currently, SCOG's functions include the funding and operation of the Stark County Metropolitan Narcorics Unit and the Canton Crime Lab. SCOG is governed by the membership, including Stark Counry, and other ciries and villages and townships. The membership elects a nine- member executive committee. Based on recommendations of the executive committee, the membership approves its own budget, appoints personnel and performs accounting and finance related activities. Continued existence of the agency is dependent on the City's continued participation; however, the City does not have an equity interest in the agency. The agency is not accumulating significant financial resources or experiencing fiscal stress,which would cause additional financial benefit or burden to the City. The City contributed$550,744 from the general fund for 2022 for the operation of SCOG. Complete financial statements may be obtained from the Stark Council of Governments. Stark County Regional Planning Commission The City participates in the Stark County Regional Planning Commission(Commission),which is a statutorily created political subdivision of the State. The commission is jointly governed among Stark Counry, and other cities,villages, and townships. Of the 88-member board,the City appoints 5 members. The degree of control exercised by any participating government is limited to its representation on the board. The principal aim of the Commission is to provide comprehensive planning,both long and short-term range, dealing with the economic and physical environment of Stark County. The board exercises total authority for the day-to-day operations of the Commission. These include budgeting,appropriating,contracting,and designating management. The Ciry has no financial responsibility for any of the Commission's liabilities. In 2022, the Ciry contributed $5,000 in membership dues to the Commission and an additional$30,000 of Housing and Urban Development(HUD)dollars for the Stock Pile Program helping low income families with renovation expenses. Complete financial statements can be obtained from the Stark Counry Regional Planning Commission, Stark Counry,Ohio. NOTE 17-DISCRETELY PRESENTED COMPONENT UNITS The component unit column in the government-wide financial statements identifies the financial data of the City's component units, the Canton Community Improvement Corporation (CCIC) and the Canton City Health District (District). They are reported separately to emphasize that they are legally separate from the City. A summary of the CCIC and District's more significant accounting policies and activities are disclosed below. A. Canton Community Improvement Corporation The CCIC is a legally separate, not-for-profit, community improvement corporation, as authorized under Chapter 1724 of the Ohio Revised Code. The seven-member board is comprised of the following,the City's Mayor,three appointed or elected officials, chosen by the Mayor, and three recommended by the Mayor and approved by the other three board members. The CCIC was organized for the purpose of advancing, encouraging, and promoting the industrial, economic, and commercial and civic development of the community. The City's Community and Economic Development Department, as authorized by City Council, provides an annual grant to pay for all operational costs associated with the CCIC. Complete financial statements can be obtained from the Canton Community Improvement Corporation. Summary of Significant Accounting Policies The financial statements of CCIC have been prepared using the accrual basis of accounting in conformity with generally accepted accounting principles (GAAP) as applied to local governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. - 108 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Community Development Loans - CCIC issues loans to various businesses for the purpose of assisting the establishment of a new business enterprise in the City of Canton and/or continuing or expanding existing business activiry. Real Estate Held for Development-Real Estate Held for Development represents property donated or transferred to CCIC by the City to be used in future economic development projects as well as land currently being utilized for an economic development project. The property held for development is reported at cost and depreciation is not recognized. The balance is reported as a non-current asset,as the CIC does not intend to distribute the property in the subsequent year. Contributions - During 2022, the CCIC received $416,578 from the city. The funds received provide economic development loans and facade improvement grants, as well as administrative expenses of CCIC. Federal Income Tax- CCIC is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. Net Position-Net position represents the difference between assets and liabiliries on the statement of net position. Net position is reported as restricted in the combined financial statements when there are limitarions imposed on its use through external restrictions imposed by creditors, grantors, laws, or regulations. There was no restricted balance for economic development as of December 31,2022. Estimates-The preparation of financial statements,in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of support,revenues and expenses during the reporting period.Actual results could differ from these estimates. Cash and Investments At December 31,2022,the carrying amount of the CCIC's deposits was$305,085. Based on the criteria described in GASB Statement No.40,"Deposits and Investment Risk Disclosures",as of December 31,2022,only$250,000 of the bank balance was covered by the Federal Deposit Insurance Corporation. There are no significant statutory restrictions regarding the deposits and investments of funds held by the not-for-profit corporation. At December 31,2022,CCIC had no investments. Real Estate Held for Development Real Estate Held for Development activity year ended December 31,2022 was as follows: Balance Balance 12/31/21 Addition Deletion 12/31/22 Real Estate Held for Development $ 40,000 $ 938,098 $ - $ 978,098 Total Cost $ 40,000 $ 938,098 $ - $ 978,098 - 109 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Community Development Loans CCIC awards loans through the Community Development Block Grant program provided by the Ciry. If the business has been awarded a Performance Loan(Deferred Loan)and has maintained all of the terms and conditions of the agreement, CCIC shall forgive and cancel the unpaid balance for the specified time stated in the agreement. For all loan types,the borrowers must meet certain criteria documented in the loan agreements for receiving these funds.Jobs must be created as a result of the loan. Fifty-one percent or more of the new employees must be in the low to moderate income category.The City retains the loans and is responsible for the collection of these loans and are therefore not recorded in the financial statements of CCIC. Commitments In 2022,there were no loans or grants committed to or approved by the Board of Directors. In-Kind Contributions,Donated Facilities and Services The City provides CCIC with office space and various office services without charge. The value of the donated faciliries is not recognized in the accompanying financial statements because no objecrive basis is available to measure the value of the donated facilities.No in-kind wages were received from the City in 2022. Risk Management For 2022,the CCIC's properties were covered under the City's property insurance policy, except for Lehman HS which had its own$1,000,000 liability insurance policy. Leases During 2022, the CCIC continued its monthly lease with D&J Promotions, Inc. (Jeffco Metals Division) for the Scales properry at l lth Street SE,Canton, Ohio through June 2022. The CCIC received$700 in rental income for 2022. B. Canton City Board of Health The constitution and laws of the State of Ohio establish the rights and privileges of the City of Canton Board of Health(the`Board of Health")as a body corporate and politic. Consistent with the provisions of the Ohio Revised Code Section 370936,the Board of Health is a legally separate organization.The Board of Health's services include communicable disease investigations, immunization clinics, tuberculosis screenings, home visits, public health nursing services and issues,health-related licenses and permits,emergency preparedness activities as well as birth certificates and death certificates. The Board of Health is governed by a six-member Governing Board(the `Board") and a Health Commissioner. Board members are appointed by the Mayor of the City of Canton (the "City") and confirmed by City Council, according to the Ohio Revised Code. The Mayor serves as president of the Board by virtue of the office. In addition,the City provides funding to the Board of Health, thus the City can impose will on the Board of Health, and the Board of Health imposes a financial burden to the City. Therefore, the Board of Health is considered a discretely presented component unit of the City of Canton. - 110- CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Summary of Significant Accounting Policies The financial statements of the Board of Health have been prepared in conformity with accounting principles generally accepted in the United States of America(GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.The more significant of the Board of Health's accounting policies are described below. Basis of Presentation - Government-Wide Financial Statements- The statement of net position and the statement of activities display information about the Board of Health as a whole. These statements include the financial activiries of the primary government, except for fiduciary funds. The Board of Health has no fiduciary funds. The statements distinguish between those activities of the Board of Health that are governmental and those that are considered business-type activities. The Board of Health has no business-type activities. The statement of net position presents the financial condition of the governmental activities and business-type activities for the Board of Health at year end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the Board of Health's govemmental activities and for the business-type activities of the Board of Health. Direct expenses are those that are specifically associated with a service, program or department and therefore are clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operation of a particular program.Revenues which are not classified as program revenues are presented as general revenues of the Board of Health,with certain limited exceptions.The comparison of direct expenses with program revenues identifies the extent to which each governmental program is self-financing or draws from the general revenues of the Board of Health. Measurement Focus - Government-Wide Financial Statements - The government-wide financial statements are prepared using the economic resources measurement focus. All assets, deferred outflows of resources, liabilities and deferred inflows of resources associated with the operation of the Board of Health are included on the statement of net position.The statement of activities presents increases(e.g.,revenues)and decreases(e.g.,expenses)in total net position. Basis of Accounting- Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements.Government-wide financial statements are prepared using the accrual basis of accounting; enterprise and custodial funds also use the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting.Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred inflows of resources, and in the presentation of expenses versus expenditures. Revenues-Exchange and Nonexchange Transactions - Revenues resulting from exchange transactions, in which each party gives and receives essentially equal value, are recorded on the accrual basis when the exchange takes place. Nonexchange transactions, in which the Board of Health receives value without directly giving equal value in return, include intergovernmental contractual allocations from participaring local governments, grants, entitlements, and donations. Revenue from intergovernmental contractual allocations, grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been sarisfied. Eligibility requirements include riming 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 Board of Health must provide local resources to be used for a specified purpose,and expenditure requirements,in which the resources are provided to the Board of Health on a reimbursement basis. - 111 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Deferred Ou�ows of Resources and Deferred Inflows of Resources - In addition to assets, the government-wide statement of net position will report a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources(expense/expenditure)until then. For the Board of Health,deferred outflows of resources are related to the Board of Health's net pension liability/asset and net OPEB asset,respectively. In addition to liabilities,both the government-wide statement of net position and the governmental fund financial statements report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources(revenue) until that time. For the Board of Health, deferred inflows of resources include pension, OPEB, and unavailable revenue.Unavailable revenue is reported only on the governmental funds balance sheet and represents receivables which will not be collected within the available period. For the Board of Health,unavailable revenue includes,but is not limited to intergovernmental grants. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. For the Board of Health,deferred inflows of resources are related to the Board of Health's net pension liability/asset and net OPEB liability/asset,respectively. Expenses-On the accrual basis of accounting,expenses are recognized at the time they are incurred. Accounts Receivable-Accounts receivables are stated at unpaid balances,less an allowance for doubtful accounts. The Board of Health provides for losses on accounts receivable using the allowance method.The allowance is based on experience,third-party contracts and other circumstances,which may affect the ability of patients to meet their obligations.Receivables are considered impaired if full principal payments are not received in accordance with the contractual terms. It is the Board of Health's policy to charge off uncollectible accounts receivable when management determines the receivable will not be collected. Capital Assets - Capital assets are reported in the applicable governmental activities columns in the government- wide financial statements,but are not reported in the fund financial statements. Capital assets are defined by the Board of Health as assets with initial,individual cost of more than$5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost.Donated capital assets are recorded at their acquisition value. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. All reported capital assets are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets.Depreciation is computed using the straight- line method over the following useful lives: Governmental Activities Description Estimated Lives Equipment 10 years Vehicles 10 years Intangible leased assets 4 years The Board of Health is reporting intangible right to use assets related to a leased building. The intangible assets are being amortized in a systematic and rational manner of the shorter of the lease term or the useful life of the underlying asset. - 112 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Net Position - Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. The Board of Health's net investment in capital assets consists of capital assets,net of accumulated depreciation,reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through enabling legislation or through external restricrions imposed by creditors, grantors, or laws or regulations of other governments. The Board of Health's policy is to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted resources are available. Net position restricted for other purposes are restricted by grantors and regulations of other governments. Interfund transactions and balances-Transfers within governmental activities are eliminated on the govemment- wide financial statements. Internal allocations of overhead expenses from one function to another or within the same function are eliminated on the statement of activities. Payments for interfund services provided and used are not eliminated. Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements. On the fund financial statements, outstanding interfund loans are reported as"interfund receivables/payables". Compensated Absences-The Board of Health reports compensated absences in accordance with the provisions of GASB Statement No. 16,"Accounting for Compensated Absences." Vacarion benefits are accrued as a liability as the benefits are earned if the employees'rights to receive compensation are attributable to services already rendered and it is probable that the employer will compensate the employees for the benefits through paid time off or some other means. The Board of Health records a liability for accumulated unused vacarion rime when earned for all eligible employees with more than one year of service. Sick leave benefits are accrued as a liability using the termination method. An accrual for unused earned sick leave is made to the extent that it is probable that benefits will result in termination payments. The liability is an estimate based on the Board of Health's past experience of making termination payments. The entire compensated absence liability is reported on the government-wide financial statements as a component of due to primary government. Use of Estimates-The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported on the financial statements and accompanying notes. Actual results may differ from those estimates. Pensions/Other Postemployment Benefits (OPEB) - For purposes of ineasuring the net pension/OPEB liability/asset, deferred outflows of resources and deferred inflows of resources related to pensions/OPEB, and pension/OPEB expense, information about the fiduciary net position of the pension/OPEB plans and additions to/deductions from their fiduciary net position have been determined on the same basis as they are reported by the pension/OPEB 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. Prepayments - Payments made to vendors for services that benefit future periods are recorded as prepayments in both government-wide and fund financial statements. A current asset for the prepaid amount is recorded at the time of purchase,and the expenditure is reported in the year in which services are consumed. Governmental fund balance has been presented as nonspendable equal to the balance of the prepayments at year-end. - 113 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Cash with Fiscal Agent As required by the Ohio Revised Code, the Canton City Auditor is the fiscal agent of the Board of Health. The Board of HealtWs cash pool, used by all funds, is deposited with the Canton City Treasurer. The cash pool is commingled with the City of Canton's cash and investment pool and is not identifiable as to demand deposits or investments. All collecrions are remitted to the Canton City Treasurer for deposit and all disbursements are made by warrants prepared by the Canton City Auditor drawn on deposits held in the name of the City of Canton.GASB 3 and GASB 40 requirements for the City of Canton are presented in the December 31,2022 Annual Comprehensive Financial Report.The fund balances are expressed in cash equivalents.Cash equivalents are available for immediate expenditure or liquid investments which are immediately marketable,have negligible credit risk,and mature within three months. The carrying amount of cash on deposit with the Canton City Treasurer at December 31, 2022 was $5,874,509. Receivables Receivables at December 31, 2022 consisted of charges for services (primarily billings from clinic services) and intergovernmental receivables arising from grants. Receivables have been recorded to the extent that they are measurable at December 31,2022. All receivables are expected to be collected in the subsequent year. Amounts due from other governments consisted of the following at year end: Fund Description Amount Governmental General Grant-federal $ 9,930 Infant Mortality Reduction Grant-federal 98,028 Public Health Infrastructure Grant-federal 101,468 Nonmajor Governmental Grants-federal 226,060 Total due from other governments $ 435,486 - 114- CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Capital Assets Due to the implementation of GASB Statement No. 87,the Board of Health has reported capital assets for the right to use a leased building which are reflected in the schedule below. Capital asset acrivity for the governmental activities for the year ended December 31,2022,was as follows: Restated Balance Balance Governmental activities: 12/31/21 Addirions Disposals 12/31/22 Capital assets, being depreciated/amortized: Equipment $ 215,542 $ 44,891 $ - $ 260,433 Vehicles 47,005 - - 47,005 Intangible right to use: Leased buildings 53,888 - - 53,888 Total capital assets,being depreciated/amortized 316,435 44,891 - 361,326 Less: accumulated depreciation/amortization: Equipment (27,243) (24,358) - (51,601) Vehicles (15,094) (4,701) - (19,795) Intangible right to use: Leasedbuildings - (17,477) - (17,477) Total accumulated depreciarion/amortization 42,337 (46,536 - 88,873 Total capital assets being depreciated/amortized,net 274,098 1,645) - 272,453 Governmental acriviries capital assets,net $ 274,098 $ 1,645) $ - $ 272,453 Depreciation/amortization expense was charged to governmental activities as follows: Governmental activities: Public Health Services $ 46,536 - 115 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNITS-(Continued) Long-term Obligations Due to the implementation of GASB Statement No. 87, the Board of Health has reported obligations for leases payable which are reflected in the schedule below. During 2022, the following activity occurred in the Board of Health's governmental and business-type long-term obligations. Restated Amounts Balance Balance Due Within Governmental Activities: 12/31/21 Additions Reductions 12/31/2022 One Year Compensatedabsences $ 529,311 $ 88,164 $ (109,268) $ 508,207 $ ll6,477 Net pension liability 2,812,408 - (983,527) 1,828,881 - Lease payable 53,888 - (17,006) 36,882 17,403 Total $ 3,395,607 $ 88,164 $ (1,109,801) $ 2,373,970 $ 133,880 The Board of Health's compensated absences will be paid from the City's compensated absences internal service fund. The Board of Health reports a compensated absences liability for its share of the liability in this fund. The Board of Health pays obligations(net pension liability/net OPEB liability)related to employee compensation from the fund benefitting from their services. Leases Payable The Board of Health has entered into a lease agreement for the use of right to use a building. Due to the implementation of GASB Statement No. 87, the Board of Health will report an intangible capital asset and corresponding liability for the future scheduled payments under the leases. The lease payments will be paid from the general fund. The Board of Health has entered into a lease agreement for the use of a building at the following terms: Lease Lease Commencement End Payment Purpose Date Years Date Method Building 2021 4 2025 Monthly The following is a schedule of future lease payments under the lease agreements: Fiscal Year Principal Interest Total 2023 $ 17,403 $ 909 $ 18,312 2024 17,957 355 18,312 2025 1,522 4 1,526 Total $ 36,882 $ 1,268 $ 38,150 - 116 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Due to City of Canton The City pays various liabilities of the Board of Health through the City's internal service funds. The Board of Health makes payments to the City to support its share of the Ciry's internal service funds and reports its share of liabilities for medical and workers' compensarion claims at year-end. The City has also advanced(loaned)monies to the Board of Health to fund short-term deficits while the Board of Health awaits reimbursement for programs. The Board of Health owes these advanced/loaned monies back to the City at year-end. The following are amounts due to the City at December 31,2022: Due to Ciry of Canton Medical Claims $ 36,347 Worker's Compensation Claims 84,292 Loans 79,160 Total $ 199,799 Risk Management The Board of Health is exposed to various risks of casualty losses and injuries to employees. Property and Liabiliry-The Board of Health belongs to the Public Enriries Pool of Ohio(PEP),a risk-sharing pool available to Ohio local governments. PEP provides property and casualty coverage for its members. York Risk Pooling Services,Inc., a Sedgwick Company, (York)functions as the administrator of PEP and provides program management, underwriting, claims, loss control, risk management, and reinsurance services for PEP. PEP is a member of the American Public Entity Excess Pool (APEEP), which is administered by York. Member governments pay annual contributions to fund PEP.PEP pays judgments, settlements and other expenses resulting from covered claims that exceed the members' deductibles. Casualty and Property Coverage - 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,the Pool retained $500,000 for casualty claims and $250,000 for properry claims). The Board of Directors and York periodically review the financial strength of PEP and other market conditions to determine the appropriate level of risk PEP will retain.There has been no significant reduction in coverage from last year. 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 (for which an independent audit is still ongoing) conform to generally accepted accounting principles, and preliminarily show the following assets, liabilities and net position at December 31,2021 and 2020(the latest information available): Casualty and Property Coverage 2021 2020 Assets $ 59,340,305 $ 57,336,499 Liab ilitie s 17,07],953 16,156,805 Net Position -Unrestricted $ 42,268,352 $ 41,179,694 - 117 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) At December 31, 2021 and 2020, the liabilities in the preceding table include unknown amounts of estimated incurred claims payable.The casualry coverage assets and net position in the preceding table include approximately $15.0 million and $14.1 million of unpaid claims to be billed to approximately 571 member governments in the future, as of December 31, 2021 and 2020, respecrively. These amounts will be included in future contributions from members when the related claims are due for payment. Based on discussions with PEP,the expected rates PEP charges to compute member contributions,which are used to pay claims as they become due, are expected to increase slightly from those used to determine the historical contributions detailed as follows. By contract, the annual liability of each member is limited to the amount of financial contributions required to be made to PEP for each year of inembership. The Board of Health's contributions for 2022 totaled$11,073. After completing one year of inembership,members may withdraw on each anniversary date of the date they joined PEP, provided they give written notice to PEP 60 days in advance of the anniversary date. Upon withdrawal, members may receive a partial refund of their capital contributions as defined by the contract. Withdrawing members have no other future obligations to the pool.Also upon withdrawal,payments for all casualty claims and claim expenses become the sole responsibility of the withdrawing member,regardless of whether a claim occurred or was reported prior to withdrawal. Contingencies Grants - The Board of Health received financial assistance from federal and state agencies in the form of grants. The expenditure of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantar agencies.Any disallowed claims resulting from such audits could become a liability of the general fund or other applicable funds.However,in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the Board of Health at December 31,2022. Litigation-The Board of Health is not currently involved in litigation for which the Board of Health's legal counsel anticipates a loss. Defined Benefit Pension Plans Plan descriptions and actuarial information for the Health Board of Health's defined benefit pension plans are the same as the City's(see Note 13). The Board of Health's contractually required contribution for the Traditional Pension Plan,the Combined Plan and Member-Directed Plan was$450,666 for 2022.Of this amount, $18,327 is reported as due to other governments. The net pension liability and net pension asset for OPERS was measured as of December 31, 2021, and the total pension liability or asset used to calculate the net pension liability or asset was determined by an actuarial valuarion as of that date. The Board of Health's proportion of the net pension liability or asset was based on the Board of Health's share of contributions to the pension plan relative to the contributions of all participating entities. - 118 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Following is information related to the proportionate share and pension expense: OPERS- OPERS - OPERS- Member- Tradirional Combined Directed Total Proportion of the net pension liability/asset prior measurement date 0.01899300% 0.02070600% 0.04481400% Proportion of the net pension liability/asset current measurement date 0.02102100% 0.02449600% 0.01668600% Change in propartionate share 0.00202800% 0.00379000% -0.02812800% Proportionate share of the net pension liability $ 1,828,881 $ - $ - $ 1,828,881 Proportionate share of the net pension asset - 96,515 3,030 99,545 Pension expense (182,539) (2,997) (486) (186,022) At December 31, 2022, the Board of Health reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: OPERS- OPERS- Member- Traditional Combined Directed Total Deferred outflows of resources Differences between eapected and actual eaperience $ 93,234 $ 599 $ 2,995 $ 96,828 Changes ofassumptions 228,701 4,850 102 233,653 Changes in employer's proportionate percentage/ difference between employer contributions 245,825 - - 245,825 Contributions subsequenttothe measurement date 423,059 16,791 10,816 450,666 Total deferred outflows ofresources $ 990,819 $ 22,240 $ 13,913 $ 1,026,972 - 119 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) OPERS- OPERS- OPERS- Member- Traditional Combined Directed Total Deferred inflows of resources Differences between eapected and actual eaperience $ 40,ll2 $ 10,795 $ - $ 50,907 Net difference between projected and actual earnings on pension plan investments 2,175,388 20,691 690 2,196,769 Changes in employer's proportionate percentage/ difference between employer contributions 29,253 - - 29,253 Total deferred inflows ofresources $ 2,244,753 $ 31,486 $ 690 $ 2,276,929 $450,666 reported as deferred outflows of resources related to pension resulting from Board of Health contributions subsequent to the measurement date will be recognized as a reduction of/increase to the net pension liability/asset 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- OPERS- OPERS- Member- Traditional Combined Directed Total Year Ending December 31: 2023 $ (180,99'� $ (6,342) $ 3,129 $ (184,210) 2024 (684,231) (8,768) 2,331 (690,668) 2025 (484,197) (5,751) 2,799 (487,149) 2026 �32�,s6g> �4,2si� 2,924 �32s,s9s� 2027 - (564) 3,863 3,299 Thereafter - (361) (12,639) (13,000) Total � (i,6�6,993� � (26,03� � z,4o� � (l,�oo,6z3� - i2o- CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Sensitivity of the Board of Health's Proportionate Share of the Net Pension Liability/Asset to Changes in the Discount Rate- The following table presents the proportionate share of the net pension liability/asset calculated using the current period discount rate assumption of 6.90%, as well as what the proportionate share of the net pension liability/asset would be if it were calculated using a discount rate that is one-percentage-point lower (5.90%)or one-percentage-point higher(7.90%)than the current rate: Current 1%Decrease Discount Rate 1%Increase Board of Health's proportionate share ofthe net pension liability(asset): Traditional Pension Plan $ 4,821,926 $ 1,828,881 $ (661,730) Combined Plan (72,018) (96,515) (ll5,621) Member-Directed Plan (2,670) (3,030) (3,337) Defined Benefit OPEB Plans Plan descriptions and actuarial information for the Health Board of Health's defined benefit OPEB plans are the same as the Ciry's(see Note 14). Employer contribution rates are actuarially determined and are expressed as a percentage of covered payroll. Employer contribution rates are actuarially determined and are expressed as a percentage of covered payroll. The Board of Health's contractually required contribution was $4,327 for 2022. Of this amount, $176 is reported as due to other governments. The net OPEB asset and total OPEB asset 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. The Board of Health's proportion of the net OPEB asset was based on the Board of Health's share of contributions to the retirement plan relative to the contributions of all participating entities. OPERS Proportion ofthe net OPEB liability/asset prior measurement date 0.01894900% Proportion ofthe net OPEB liability/asset current measurement date 0.02095100% Change in proportionate share 0.00200200°/o Proportionate share ofthe net OPEB as s et $ 656,203 OPEB eapense (540,412) - 121 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) At December 31, 2022, the Board of Health reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: OPERS Deferred outflows of resources Changes in employer's proportionate percentage/ difference between ernployer contributions $ 32,955 Contributions subsequent to the measurement date 4,327 Total deferred outflows ofresources $ 37,282 OPERS Deferred inflows of resources Differences between e�ected and actual eaperience $ 99,536 Net difference between projected and actual earnings on OPEB plan investments 312,831 Changes ofassurnptions 265,623 Changes in employer's proportionate percentage/ difference between employer contributions 17,923 Total deferred inflows ofresources $ 695,913 $4,327 reported as deferred outflows of resources related to OPEB resulting from Board of Health contributions subsequent to the measurement date will be recognized as a reduction of/increase to the net OPEB liability/asset in the year ending December 31,2023. - 122 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) 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 Year Ending December 31: 2023 $ (399,776) 2024 (146,820) 2025 (69,744) 2026 (46,618) Total $ (662,958) Sensitivity of the Board of Health's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate - The following table presents the proportionate share of the net OPEB asset calculated using the single discount rate of 6.00%,as well as what the proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is one-percentage-point lower(5.00%)or one-percentage-point higher(7.00%)than the current rate: Current 1%Decrease Discount Rate 1%Increase Board of Health's proportionate share ofthe net OPEB asset $ 385,909 $ 656,203 $ 880,551 Sensitivity of the Board of Health's Proportionate Share of the Net OPEB Liability 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 asset.The following table presents the net OPEB asset calculated using the assumed trend rates,and the expected net OPEB asset if it were calculated using a health care cost trend rate that is 1.00%lower or 1.00%higher than the current rate. Retiree health care valuations use a health care cost trend assumption with changes over several years built into that assumption.The near-term rates reflect increases in the current cost of healthcare;the trend starting in 2022 is 5.50%.If this trend continues for future years,the projection indicates that years from now virtually all expenditures will be for health care. A more reasonable alternative is the health care 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%in the most recent valuation. C�rrent Health Care Trend Rate 1%Decrease Assumption 1%Increase Board of Health's proportionate share ofthe net OPEB asset $ 663,294 $ 656,203 $ 647,791 - 123 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 17-DISCRETELY PRESENTED COMPONENT UNTTS-(Continued) Other Employee Benefits Compensated Absences-Employees earn between 10 and 30 days of vacation time per year depending upon service with he Board of Health. Up to 5 vacation days(40 hours)may be carried over into the next calendar year subject to approval by the Board of Health for extenuating circumstances. Vacation hours carried forward must be used by March 31. At no time may the vacation credit exceed the vacation time plus 5 days.Vacarion rime in excess of this total will be forfeited by the employee. Employees earn sick leave at the rate 4.6 hours per 80 hours worked. Sick leave accumulation is unlimited. Upon retirement or death,an employee can be paid 100 percent to a maximum of 150 days or 1,200 hours of accumulated, unused sick leave. Employee Medical, Dental, Vision, and Prescription Drug - The Board of Health provides employee medical benefits through participation in the City's major medical,hospitalization,prescription and dental and vision self- insured program. The City maintains a self-insurance internal service fund to account for and finance its uninsured risks of loss in this program. The City purchases stop-loss coverage of$200,000 specific per family. The third- party administrators,Aultcare and UMR,review all claims,which are then paid by the City. Interfund Activity The Board of Health made the following interfund transfers in 2022: Transfers From Transfers To Amount General fund Air Pollurion(134)fund $ 40,000 Nonmajor governmental Air Pollution(134)fund 204,651 $ 244,651 The interfund transfers represent the residual equity of transfer of certain nonmajor governmental grant funds to the general fund. Interfund transfers within governmental activities are eliminated on the government-wide financial statements. Interfund Loans Interfund loans consisted of the following at December 31,2022, as reported on the fund financial statements: Receivable fund Payable fund Amount General fund Nonmajor governmental fund $ 10,000 The interfund loan balance is the result of resources provided by the receivable fund to the payable fund to provide cash flow resources until anticipated revenues are received. - 124- CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 18-CONTINGENCIES A. Grants The Ciry received financial assistance from federal and State agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liabiliry of the general fund or other applicable funds;however,in the opinion of management,any such disallowed claims will not have a material adverse effect on the overall financial position of the City. B. Litigation The City is a party to various other legal proceedings. The City management is of the opinion that ultimate disposition of those subsequent pending claims and legal proceedings will likely not have a material adverse effect, if any, on the financial condition of the City. However any pending litigation that could be successful against the Ciry would in all likelihood not exceed a maximum exposure of$250,000. NOTE 19-COMMITMENTS The City utilizes encumbrance accounting as part of its budgetary controls. Encumbrances outstanding at year end may be reported as part of restricted, committed, or assigned classifications of fund balance to the extent fund balance is available. At year end, the City's commitments for encumbrances (less amounts already reported as payables)in the governmental funds were as follows: Encumbrances as of 12/31/22 Major Funds General Fund $ 4,946,094 Community and Economic Development Fund 1,693,518 ARPA 20,813,447 Capital Project Fund 4,822,187 Motor Vehicle Purchase Fund 99,834 Nonmajor Governmental Funds 7,517,606 Total $ 39,892,686 NOTE 20-INTERFUND TRANSACTIONS AND INTERFUND BALANCES A. Interfund Transfers Interfund transfers for the year ended December 31, 2022, consisted of the following, as reported on the fund financial statements: Transfers Out Transfer In Amount General fund Nonmajor governmental funds $ 223,846 General fund Internal service funds 425,000 Total $ 648,846 - 125 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 20-INTERFUND TRANSACTIONS AND INTERFUND BALANCES-(Continued) Transfers are used to 1) move revenues from the fund required by statute or budget to collect them to the fund required by statute or budget to expend them,2)move receipts restricted to debt service from the funds collecring the receipts to the debt service fund as debt service payments become due,and 3)use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds. Interfund transfers between governmental funds are eliminated for reporting on the statement of activities. B. Interfund Balances Due From Other Funds(Receivable) Internal General Service Due To Other Funds(Payable) Fund Funds Total General fund $ - $ 93,218 $ 93,218 Community and economic development fund 157,674 - 157,674 Capital projects fund - 1,831 1,831 Water operating fund - 4,027 4,027 Sewer operating fund - 1,209 1,209 Refuse operating fund - 1,839 1,839 Nonmajor enterprise funds - 3,470 3,470 Nonmajor governmental funds 6,580,551 2,688 6,583,239 Total $ 6,738,225 $ 108,282 $ 6,846,507 Balances due among the governmental activities and internal service funds are eliminated on the government-wide statement of net position.Balances due from the enterprise funds to the governmental activities and internal service funds are reported on the statement of net position as a component of internal balance. The amount due from other funds for the general fund contains a long-term advance to the comprehensive plan implementation fund(a nonmajor governmental fund)of$4,300,000 that will be repaid in greater than one year. - 126 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 21-FUND BALANCES Fund balance is classified as nonspendable,restricted,committed,assigned,or unassigned based primarily on the extent to which the Ciry is bound to observe constraints imposed upon the use of the resources in the government funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented below: Community and Motor Nonmajor General Economic Capital Vehicle Governmental Fund Balances Fund Development Projects Purchase Funds Total Nonspendable: Materials& supplies $ 383,957 $ - $ - $ - $ 30,038 $ 413,995 Prepaids 622,185 584 31,700 - 73,517 727,986 Long-term loans 4,300,000 - - - - 4,300,000 Unclaimed monies 197,068 - - - - 197,068 Total nonspendable 5,503,210 584 31,700 - 103,555 5,639,049 Restricted for: Road improvements - - - - 2,450,523 2,450,523 Community development grants&programs - 2,479,052 - - 13,870,007 16,349,059 Other purposes - - - - 2,785,693 2,785,693 Police department grants, donations&programs - - - - 423,661 423,661 Judicial system grants&programs - - - - 2,859,413 2,859,413 Cornerstone parking deck operations - - - - 365,442 365,442 Youth development donations&programs - - - - 5,332 5,332 Employee recognition program - - - - 143 143 Debt service payments - - - - 112,478 ll 2,478 Park donations - - - - 21,813 21,813 Infrastructure improvements - - - - 351,804 351,804 Recreational facility improvements - - - - 450,810 450,810 Construction projects - - - - 3,381,922 3,381,922 City hall renovations - - - - 1,744 1,744 Canton merchandising - - - - 15,213 15,213 Motor vehicle purchases - - - 853,593 - 853,593 Total restricted $ - $ 2,479,052 $ - $ 853,593 $ 27,095,998 $ 30,428,643 - 127 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 21-FUND BALANCES-(Continued) Community and Motor Nonmajor General Economic Capital Vehicle Governmental Fund Balances Fund Development Projects Purchase Funds Total Committed to: Vehicle self-insurance $ 308,221 $ - $ - $ - $ - $ 308,221 Motor vehicle maintenance 500,574 - - - - 500,574 Park department operations - - - - 3,524,648 3,524,648 Capital improvements - - 9,572,294 - - 9,572,294 Other purposes 112,709 - - - 434,066 546,775 Total committed 921,504 - 9,572,294 - 3,958,714 14,452,512 Assigned to: General government operations 1,777,554 - - - - 1,777,554 Security of persons and properryprograms 1,105,287 - - - - 1,105,287 Transportation projects 1,321,147 - - - - 1,321,147 Community environment projects 22,791 - - - - 22,791 Leisure rime acrivities 471,090 - - - - 471,090 Total assigned 4,697,869 - - - - 4,697,869 Unassigned(deficit) 5,905,801 - - - (1,708,238) 4,197,563 Total fund balances $ 17,028,384 $ 2,479,636 $ 9,603,994 $ 853,593 $ 29,450,029 $ 59,415,636 NOTE 22-TAX ABATEMENTS As of December 31, 2022, the City provides tax abatements through two programs - Community Reinvestment Area (CRA)and Enterprise Zone(Ezone). These programs relate to the abatement of property taxes. CRA - Under the authority of Ohio Revised Code (ORC) Section 3735.67, the CRA program is an economic development tool administered by municipal and county governments that provides real property tax exemptions for property owners who renovate existing or construct new buildings. CRA's are areas of land in which property owners can receive tax incentives for investing in real property improvements. Under the CRA program, local governments petition to the Ohio Development Services Agency(ODSA)for confirmation of a geographical area in which investment in housing is desired. Once an area is confirmed by the ODSA, local governments may offer real property tax exemptions to taxpayers that invest in that area. Property owners in the CRA can receive temporary tax abatements for renovation of existing structures and new construction in these areas. Property owners apply to the local legislative authority for approval to renovate or construct in the CRA. Upon approval and certification of completion,the amount of the abatement is deducted from the individual or entity's property tax bill. - 128 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 22-TAX ABATEMENTS-(Continued) Ezone- Under the authority of ORC Sections 5709.62 and 5709.63, the Ezone program is an economic development tool administered by municipal and county governments that provides real and personal property tax exemptions to businesses making investments in Ohio. An Ezone is a designated area of land in which businesses can receive tax incentives in the form of tax exemptions on qualifying new investment. An Ezone's geographic area is identified by the local government involved in the creation of the zone. Once the zone is defined, the local legislative authority participating in the creation must petition the OSDA. The OSDA must then certify the area for it to become an acrive Enterprise Zone. The local legislative authority negotiates the terms of the Enterprise Zone Agreement (the "Agreement")with the business,which may include tax sharing with the Board of Education. Legislation must then be passed to approve the Agreement. All Agreements must be finalized before the project begins and may contain provisions for the recoupment of taxes should the individual or entity fail to perform. The amount of the abatement is deducted from the business's property tax bill. The City has entered into agreements to abate property taxes through these programs. During 2022,the City's property tax revenues were reduced as a result of these agreements as follows: City Tax Abatement Program Taxes Abated CRA $ 10,662 Ezone 2,392 Total $ 13,054 During 2022,the City did not incur a reduction in taxes by agreements entered into by other governments that reduced the City's taxes. NOTE 23-DUE FROM COMPONENT UNIT During 2019,the City of Canton Board of Health became a legally separate entity and as a result a component unit of the City. The Ciry still pays certain obligations related to the Board of Health. The table below presents the amounts owed to the City by the Board of Health at year-end. Amount Due from component unit: Loan $ 79,160 Medical Claims 36,347 Workers Compensarion Claims 84,292 Total $ 199,799 NOTE 24-COVID-19 The United States and the State of Ohio declared a state of emergency in March of 2020 due to the COVID-19 pandemic. Ohio's state of emergency ended in June,2021 while the national state of emergency ended in Apri12023.During 2022, the City received COVID-19 funding. The financial impact of COVID-19 and the continuing emergency measures may impact subsequent periods of the City. The impact on the City's future operating costs,revenues, and additional recovery from emergency funding, either federal or state,cannot be estimated. The City's investment portfolio fluctuates with market conditions,and due to market volatility,the amount of gains or losses that may be realized in subsequent periods,if any,cannot be determined. - 129 - CITY OF CANTON STARK COUNTY,OHIO NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2022 NOTE 25-SIGNIFICANT SUBSEQUENT EVENTS On April 1, 2023, the City retired the $1,200,000 Historic Hercules Note through the issuance of a$900,000 Historic Hercules Refunding Note. The Historic Hercules Refunding Note bears an interest rate of 6.00%and matures April 1, 2024. - 130- REQUIRED SUPPLEMENTARY INFORMATION -131 - CITY OF CANTON,OHIO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY/NET PENSION ASSET OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM(OPERS) LAST NINE YEARS 2022 2021 2020 2019 Traditional Plan: City's proportion of the net pension liability 0.218532% 0.210815% 0.222220% 0.203442% City's proportionate share of the netpensionliability $ 19,013,198 $ 31,217,155 $ 40,055,195 $ 55,718,639 City'scoveredpayroll $ 31,922,193 $ 28,616,786 $ 28,888,021 $ 27,495,850 City's proportionate share of the net pension liability as a percentage of its covered payroll 59.56% 109.09% 138.66% 202.64% Plan fiduciary net position as a percentage of the total pension liability 92.62% 86.88% 82.17% 74.70% Combined Plan: Ciry's proportion of the netpensionasset 0.254661% 0.229828% 0.238514% 0.189944% Ciry's proportionate share of the netpensionasset $ 1,003,378 $ 663,430 $ 453,559 $ 249,671 Ciry'scoveredpayroll $ 1,167,486 $ 1,006,864 $ 972,414 $ 953,243 City's proportionate share of the net pension asset as a percentage of its covered payroll 85.94% 65.89% 46.64% 26.19% Plan fiduciary net position as a percentage of the total pension asset 169.88% 157.67% 145.28% 126.64% Member Directed Plan. Ciry's proportion of the netpensionasset 0.173469% 0.155658% 0.186971% 0.152969% Ciry's proportionate share of the netpensionasset $ 31,495 $ 33,524 $ 6,445 $ 3,402 Ciry's covered payroll $ 1,093,640 $ 1,097,980 $ 1,006,880 $ 942,580 City's proportionate share of the net pension asset as a percentage of its covered payroll 2.88% 3.05% 0.64% 036% Plan fiduciary net position as a percentage of the total pension asset 171.84% 188.21% 118.84% 113.42% Note:Information prior to 2014 was unavailable. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Amounts presented for each fiscal year were determined as of the City's measurement date which is the prior year-end. (1)Amounts for 2018 have been restated to reflect the removal of the Health Districts's proportionate share. SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION -132- 2018(1) 2017 2016 2015 2014 0.204422% 0.224478% 0.239094% 0.238157% 0.238157% $ 32,069,771 $ 50,975,135 $ 41,414,095 $ 28,724,397 $ 28,075,608 $ 29,602,038 $ 29,259,467 $ 29,866,883 $ 29,295,150 $ 28,672,100 108.34% 174.22% 138.66% 98.05% 97.92% 84.66% 77.25% 81.08% 86.45% 86.36% 0.252294% 0.316472% 0.327300% 0.336465% 0.336465% $ 343,454 $ 176,139 $ 159,271 $ 129,546 $ 35,305 $ 1,128,777 $ 1,231,883 $ 1,182,483 $ 1,229,908 $ 1,194,669 30.43% 14.30% 13.47% 10.53% 2.96% 137.28% ll6.55% ll6.90% ll4.83% 104.56% 0.161454% 0.174190% 0.181591% n/a n/a $ 5,635 $ 726 $ 694 n/a n/a $ 966,700 $ 715,867 $ 1,011,317 n/a n/a 0.58% 0.10% 0.07% n/a n/a 124.46% 103.40% 103.91% n/a n/a -133- CITY OF CANTON,OHIO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY OHIO POLICE AND FIRE(OP&F)PENSION FUND LAST NINE YEARS 2022 2021 2020 2019 Ciry's proportion of the net pension liability 0.90479000% 0.88721310% 0.88014160% 0.89002900% City's proportionate share of the net pension liabiliry $ 56,526,046 $ 60,482,113 $ 59,291,039 $ 72,649,884 Ciry's covered payroll $ 22,286,765 $ 21,962,986 $ 21,079,645 $ 20,160,698 Ciry's proportionate share of the net pension liability as a percentage of its covered payroll 253.63% 27538% 281.27% 36035% Plan fiduciary net position as a percentage of the total pension liability 75.03% 70.65% 69.89% 63.07% Note:Information prior to 2014 was unavailable. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Amounts presented for each fiscal year were determined as of the Ciry's measurement date which is the prior year-end. SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - 134- 2018 2017 2016 2015 2014 0.91049900% 0.89965700% 0.99237900% 0.98849140% 0.98849140% $ 55,881,392 $ 56,983,376 $ 63,840,446 $ 51,207,977 $ 48,142,632 $ 19,960,909 $ 19,548,776 $ 19,839,596 $ 19,409,588 $ 21,641,256 279.95% 291.49% 321.78% 263.83% 222.46% 70.91°/a 68.36°/a 66.77% 72.20% 73.00% - 135- CITY OF CANTON,OHIO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CITY PENSION CONTRIBUTIONS OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM(OPERS) LAST TEN YEARS 2022 2021 2020 2019 Tr-aditional Plan: Contractuallyrequiredcontribution $ 4,398,146 $ 4,469,107 $ 4,006,350 $ 4,044,323 Contributions in relation to the conh-actually required contribution (4,398,146) (4,469,107) (4,006,350) (4,044,323) Contribution deficiency(excess) $ - $ - $ - $ - City's covered payroll $ 31,415,329 $ 31,922,193 $ 28,616,786 $ 28,888,021 Contributions as a percentage of covered payroll 14.00% 14.00% 14.00% 14.00% Combined Plan: Contractuallyrequiredcontribution $ 174,563 $ 163,448 $ 140,961 $ 136,138 Contributions in relation to the contractually required contribution (174,563) (163,448) (140,961) (136,138) Contribution deficiency(excess) $ - $ - $ - $ - City's covered payroll $ 1,246,879 $ 1,167,486 $ 1,006,864 $ 972,414 Contributions as a percentage of covered payroll 14.00% 14.00% 14.00% 14.00% Member Directed Plan: Contractually required contribution $ 112,448 $ 109,364 $ 109,798 $ 100,688 Contributions in relation to the conh-actually required contribution (112,448) (109,364) (109,798) (100,688) Contribution deficiency(excess) $ - $ - $ - $ - City's covered payroll $ 1,124,480 $ 1,093,640 $ 1,097,980 $ 1,006,880 Contributions as a percentage of covered payroll 10.00% 10.00% 10.00% 10.00% (1)Information prior to 2013 is not available for the Traditional and Combined Plans and information for the Member Directed Plan is not available prior to 2015. Schedule is intended to show information far 10 years.Additional years will be displayed as they become available. (2)Amounts for 2018 have been restated to reflect the removal of the Health Department's proportionate share. SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - 136- 2018(2) 2017 2016 2015 2014 2013 $ 3,849,419 $ 3,848,265 $ 3,511,136 $ 3,584,026 $ 3,515,418 $ 3,727,373 (3,849,419) (3,848,265) (3,511,136) (3,584,026) (3,515,418) (3,727,373) $ - $ - $ - $ - $ - $ - $ 27,495,850 $ 29,602,038 $ 29,259,467 $ 29,866,883 $ 29,295,150 $ 28,672,100 14.00% 13.00% 12.00% 12.00% 12.00% 13.00% $ 133,454 $ 146,741 $ 147,826 $ 141,898 $ 147,589 $ 155,307 (133,454) (146,741) (147,826) (141,898) (147,589) (155,307) $ - $ - $ - $ - $ - $ - $ 953,243 $ 1,128,777 $ 1,231,883 $ 1,182,483 $ 1,229,908 $ 1,194,669 14.00% 13.00% 12.00% 12.00% 12.00% 13.00% $ 94,258 $ 96,670 $ 85,904 $ 121,358 (94,258) (96,670) (85,904) (121,358) $ - $ - $ - $ - $ 942,580 $ 966,700 $ 715,867 $ 1,011,317 10.00% 10.00% 12.00% 12.00% - 137- CITY OF CANTON,OHIO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CITY PENSION CONTRIBUTIONS OHIO POLICE AND FIRE(OP&F)PENSION FUND LAST TEN YEARS 2022 2021 2020 2019 Police: Contractually required contribution $ 2,163,428 $ 2,259,868 $ 2,226,925 $ 2,122,872 Contributions in relation to the contractuallyrequiredcontriburion (2,163,428) (2,259,868) (2,226,925) (2,122,872) Contribution deficiency(excess) $ - $ - $ - $ - City'scoveredpayroll $ 11,386,463 $ 11,894,042 $ 11,720,658 $ 11,173,011 Contributions as a percentage of covered payroll 19.00% 19.00% 19.00% 19.00% Fire: Contractually required contribution $ 2,704,995 $ 2,442,290 $ 2,406,947 $ 2,328,059 Contriburions in relarion to the contractually required contribution (2,704,995) (2,442,290) (2,406,947) (2,328,059) Contriburion deficiency(excess) $ - $ - $ - $ - City's coveredpayroll $ ll,510,617 $ 10,392,723 $ 10,242,328 $ 9,906,634 Contributions as a percentage of covered payroll 23.50% 23.50% 23.50% 23.50% SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - 138- 2018 2017 2016 2015 2014 2013 $ 2,001,228 $ 1,985,253 $ 1,957,745 $ 1,915,238 $ 1,925,993 $ 1,781,676 (2,001,228) (1,985,253) (1,957,745) (1,915,238) (1,925,993) (1,781,676) $ - $ - $ - $ - $ - $ - $ 10,532,779 $ 10,448,700 $ 10,303,921 $ 10,080,200 $ 10,136,805 $ 11,217,268 19.00% 19.00% 19.00% 19.00% 19.00% 15.88% $ 2,262,561 $ 2,235,369 $ 2,172,541 $ 2,293,458 $ 2,179,104 $ 2,123,929 (2,262,561) (2,235,369) (2,172,541) (2,293,458) (2,179,104) (2,123,929) $ - $ - $ - $ - $ - $ - $ 9,627,919 $ 9,512,209 $ 9,244,855 $ 9,759,396 $ 9,272,783 $ 10,419,930 23.50% 23.50% 23.50% 23.50% 23.50% 2038% - 139- CITY OF CANTON,OHIO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY/NET OPEB ASSET OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM(OPERS) LAST SIX YEARS 2022 2021 2020 2019 City's proportion of the net OPEB liability/asset 0.217803% 0.210333% 0.221337% 0.202446% City's proportionate share of the netOPEBliability/(asset) $ (6,821,938) 5 (3,747,246) $ 27,880,039 $ 26,394,121 Ciry's covered payroll $ 34,183,319 $ 30,721,630 $ 30,867,315 $ 29,391,673 Ciry's proportionate share of the net OPEB liability/asset as a percentage of its covered payroll 19.96% 12.20% 9032% 89.80% Plan fiduciary net position as a percentage ofthe total OPEB liability/asset 128.23% ll5.57% 47.80% 4633% Note:Information priar to 2017 was unavailable. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Amounts presented for each fiscal year were determined as of thc City's measurement date which is the prior year-end. (1)Amounts far 2018 have been restated to reflect the removal of the Health DistricYs proportionate share. SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION -140- 2018(1) 2017 0.204259°/a 0.224638°/a $ 22,181,075 $ 22,689,180 $ 31,697,515 $ 31,207,217 69.98% 72.70% 54.14°/a 54.04°/a -141 - CITY OF CANTON,OHIO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY OHIO POLICE AND FIRE(OP&F)PENSION FUND LAST SIX YEARS 2022 2021 2020 2019 City's proportion of the net OPEB liability 0.90479000% 0.88721310% 0.88014160% 0.89002900% City's proportionate share of the net OPEB liabiliry $ 9,917,277 $ 9,400,168 $ 8,693,801 $ 8,105,079 Ciry's covered payroll $ 22,286,765 $ 21,962,986 $ 21,079,645 $ 20,160,698 City's proportionate share of the net OPEB liability as a percentage of its covered payroll 44.50% 42.80% 41.24% 40.20% Plan fiduciary net position as a percentage of the total OPEB liability 46.86% 45.42% 47.08% 46.57% Note:Information priar to 2017 was unavailable. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Amounts presented for each fiscal year were determined as of the City's measurement date which is the prior year-end. SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION -142- zois zoi� o.9io499oo�ia o.s996s�oo�ia $ 51,587,558 $ 42,704,695 $ 19,960,909 $ 19,548,776 258.44% 218.45% 14.13% 15.96% -143- CITY OF CANTON,OHIO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CITY OPEB CONTRIBUTIONS OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM(OPERS) LAST TEN YEARS (SEE ACCOUNTANT'S COMPILATION REPORT) 2022 2021 2020 2019 Contractually required contribution $ 44,979 $ 43,746 $ 43,919 $ 40,275 Contributions in relation to the contractually required contriburion (44,979) (43,746) (43,919) (40,275) Contribution deficiency(excess) $ - $ - $ - $ - City'scovered payroll $ 33,786,688 $ 34,183,319 $ 30,721,630 $ 30,867,315 Contributions as a percentage of covered payroll 0.13% 0.13% 0.14% 0.13% (1) Information prior to 2013 not available. (2)Amounts for 2018 have been restated to reflect the removal of the Health Department's proportionate share. SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - 144- 2018(2) 2017 2016 2015 2014 2013 $ 37,703 $ 345,976 $ 650,519 $ 620,986 $ 623,331 $ 41,532 (37,703) (345,976) (650,519) (620,986) (623,331) (41,532) $ - $ - $ - $ - $ - $ - $ 29,391,673 $ 31,697,515 $ 31,207,217 $ 32,060,683 $ 30,525,058 $ 29,866,769 0.13% 1.09% 2.08% 1.94% 2.04% 0.14% - 145- CITY OF CANTON,OffiO STARK COUNTY,OHIO SCHEDULES OF THE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CITY OPEB CONTRiBUTIONS OHIO POLICE AND FIRE(OP&F)PENSION FUND LAST TEN YEARS (SEE ACCOUNTANT'S COMPILATION REPORT) 2022 2021 2020 2019 Police: Contractually required contribution $ 56,932 $ 59,470 $ 58,603 $ 55,865 Contriburions in relation to the contractually required contribution (56,932) (59,470) (58,603) (55,865) Contribution deficiency(excess) $ - $ - $ - $ - City'scoveredpayroll $ 11,386,463 $ 11,894,042 $ 11,720,658 $ 11,173,011 Contributions as a percentage of covered payroll 0.50% 0.50% 0.50% 0.50% Fire: Contractually required contriburion $ 57,553 $ 51,964 $ 51,212 $ 49,533 Contriburions in reLation to the contractually required contribution (57,553) (51,964) (51,212) (49,533) Contribution deficiency(excess) $ - $ - $ - $ - City's covered payroll $ 11,510,617 $ 10,392,723 $ 10,242,328 $ 9,906,634 Contriburions as a percentage of covered payroll 0.50% 0.50% 0.50% 0.50% SEE ACCOMPANYING NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - 146- 2018 2017 2016 2015 2014 2013 $ 52,664 $ 52,244 $ 51,520 $ 51,763 $ 49,794 $ 347,422 (52,664) (52,244) (51,520) (51,763) (49,794) (347,422) $ - $ - $ - $ - $ - $ - $ 10,532,779 $ 10,448,700 $ 10,303,921 $ 10,080,200 $ 10,136,805 $ 11,217,268 0.50% 0.50% 0.50% 0.50% 0.50% 3.62% $ 48,140 $ 47,561 $ 46,224 $ 48,797 $ 47,212 $ 316,280 (48,140) (47,561) (46,224) (48,797) (47,212) (316,280) $ - $ - $ - $ - $ - $ - $ 9,627,919 $ 9,512,209 $ 9,244,855 $ 9,759,396 $ 9,272,783 $ 10,419,930 0.50% 0.50% 0.50% 0.50% 0.50% 3.62% - 147- CITY OF CANTON,OHIO STARK COUNTY,OHIO NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED DECEMBER 31,2022 PENSION OHIO PUBLIC EMPLOYEES RETIREME'NT SYSTEM(OPERS) Changes in benefit terms: � There were no changes in benefit terms from the amounts reported for 2014. � There were no changes in benefit terms from the amounts reported for 2015. � There were no changes in benefit terms from the amounts reported for 2016. � There were no changes in benefit terms from the amounts reported for 2017. � There were no changes in benefit terms from the amounts reported for 2018. � There were no changes in benefit terms from the amounts reported for 2019. � There were no changes in benefit terms from the amounts reported for 2020. � There were no changes in benefit terms from the amounts reported for 2021. � There were no changes in benefit terms from the amounts reported for 2022. Changes in assumptions: ° There were no changes in assumptions for 2014. � There were no changes in assumptions for 2015. � There were no changes in assumptions for 2016. ° For 2017, the following were the most significant changes of assumptions that affected the total pension liability since the prior measurement date: (a) reduction in the actuarially assumed rate of return from 8.00% down to 7.50%, (b) for defined benefit investments,decreasing the wage inflation from 3.75%to 3.25%and(c)changing the future salary increases from a range of 4.25%- 10.05%to 3.25%-10.75%. � There were no changes in assumptions for 2018. ° Far 2019, the following were the most significant changes of assumprions that affected the total pension liabiliry since the prior measurement date:(a)the assumed rate of return and discount rate were reduced from 7.50%down to 7.20%. � There were no changes in assumptions for 2020. � There were no changes in assumptions for 2021. � Far 2022, the following were the most significant changes of assumptions that affected the total pension liabiliry since the prior measurement date: (a) wage inflation was changed from 3.25% to 2.75%, (b) future salary increases, including inflation were changed from 3.25%-10.75% to 2.75%-10.75%, (c) COLA for post 1/7/2013 rerirees were changed from 0.50%, simple through 2021, then 2.15% simple to 3.00%, simple through 2022, then 2.05% simple and (d) the actuarially assumed rate of return was changed from 7.20%to 6.90%. (Continued) 148 CITY OF CANTON,OHIO STARK COUNTY,OHIO NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 PENSION OHIO POLICE AND FIRE(OP&F)PENSION FZIND Changes in benefit terms: � There were no changes in benefit terms from the amounts reported for 2014. � There were no changes in benefit terms from the amounts reported for 2015. � There were no changes in benefit terms from the amounts reported for 2016. � There were no changes in benefit terms from the amounts reported for 2017. � There were no changes in benefit terms from the amounts reported for 2018. � There were no changes in benefit terms from the amounts reported for 2019. � There were no changes in benefit terms from the amounts reported for 2020. � There were no changes in benefit terms from the amounts reported for 2021. � There were no changes in benefit terms from the amounts reported for 2022. Changes in assumptions: ° There were no changes in assumptions for 2014. � There were no changes in assumptions for 2015. � There were no changes in assumptions for 2016. � There were no changes in assumptions for 2017. ° Far 2018, the following were the most significant changes of assumptions that affected the total pension liabiliry since the prior measurement date: (a)reducrion in the actuarially assumed rate of return from 8.25%down to 8.00%, (b)changing the future salary increases from a range of 4.25%-11.00% to 3.75%-10.50%, (c) reduction in payroll increases from 3.75% down to 3.25%, (d) reduction in inflation assumptions from 3.25% down to 2.75% and (e) Cost of Living Adjustments (COLA) were reduced from 2.60%and 3.00%simple to 2.20%and 3.00%simple. � There were no changes in assumptions for 2019. � There were no changes in assumptions for 2020. ° There were no changes in assumptions for 2021. ° Far 2022, the following were the most significant changes of assumptions that affected the total pension liabiliry since the prior measurement date:(a)the actuarially assumed rate of return was changed from 8.00%to 7.50%. (Continued) 149 CITY OF CANTON,OHIO STARK COUNTY,OHIO NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 OTHER POSTEMPLOYMENT BENEFITS(OPEB) OHIO PUBLIC E'MPLOYEES RETIREME'NT SYSTEM(OPERS) Changes in benefit terms: � There were no changes in benefit terms from the amounts reported for 2017. � There were no changes in benefit terms from the amounts reported for 2018. � There were no changes in benefit terms from the amounts reported for 2019. � There were no changes in benefit terms from the amounts reported for 2020. � For 2021, the following were the most significant changes in benefit terms since the prior measurement date: the Board approved several changes to the health care plan offered to Medicare and non-Medicare retirees in efforts to decrease costs and increase the solvency of the health care Plan. These changes are effective January 1,2022 and include changes to base allowances and eligibility for Medicare retirees, as well as replacing OPERS-sponsored medical plans for non-Medicare retirees with monthly allowances, similar to the program for Medicare retirees. These changes are reflected in the December 31, 2020 measurement date health care valuation.These changes significantly decreased the total OPEB liability for the measurement date December 31,2020. � There were no changes in benefit terms from the amounts reparted for 2022. Changes in assumptions: ° There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for 2017. ° For 2018, the following were the most significant changes of assumptions that affected the total OPEB liability since the prior measurement date:(a)reduction in the actuarially assumed rate of return from 4.23%down to 3.85%. ° For 2019, the following were the most significant changes of assumprions that affect the total OPEB liabiliry since the prior measurement date: (a) the discount rate was increased from 3.85% up to 3.96%, (b) The investment rate of return was decreased from 6.50%percent down to 6.00%, (c)the municipal bond rate was increased from 331%up to 3.71%and(d)the health care cost trend rate was increased from 7.50%,initial/3.25%,ultimate in 2028 up to 10.00%,initiaU3.25%ultimate in 2029. � For 2020, the following were the most significant changes of assumptions that affect the total OPEB liability since the prior measurement date: (a) the discount rate was decreased from 3.96% up to 3.16%, (b) the municipal bond rate was decreased from 3.71%up to 2.75%and(c)the health care cost trend rate was increased from 10.00%, initial/3.25%,ultimate in 2029 up to 10.50%, initial/3.50%ultimate in 2030. � Far 2021, the following were the most significant changes of assumprions that affect the total OPEB liabiliry since the prior measurement date: (a) the discount rate was increased from 3.16% up to 6.00%, (b) the municipal bond rate was decreased from 2.75% up to 2.00% and (c) the health care cost trend rate was decreased from 10.00%, initial/3.50%, ultimate in 2030 down to 8.50%,initial/3.50%ulrimate in 2035. � For 2022, the following were the most significant changes of assumptions that affect the total OPEB liability since the prior measurement date: (a)wage inflation changed from 3.25%to 2.75%,(b)projected salary increases,including inflation changed from 3.25%-10.75% to 2.75%-10.75%, (c)the municipal bond rate was changed from 2.00%to 1.84%and(d)the health care cost trend rate was changed from 8.50%initial,3.50%ultimate in 2035 to 5.50%initial,3.50%ultimate in 2034. (Continued) 150 CITY OF CANTON,OHIO STARK COUNTY,OHIO NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 OTHER POSTEMPLOYMENT BENEFITS(OPEB) OHIO POLICE AND FIRE(OP&F)PENSION FZTND Changes in benefit terms: � There were no changes in benefit terms from the amounts reparted for 2017. � There were no changes in benefit terms from the amounts reported for 2018. � Far 2019,OP&F changed its retiree health care model from a self-insured health care plan to a stipend-based health care model. � There were no changes in benefit terms from the amounts reported for 2020. � There were no changes in benefit terms from the amounts reparted for 2021. � There were no changes in benefit terms from the amounts reported for 2022. Changes in assumptions: � There were no changes in methods and assumptions used in the calculation of actuarial determined contributions for 2017. 0 Far 2018, the following were the most significant changes of assumprions that affected the total OPEB liabiliry since the prior measurement date: (a) DROP interest rate was reduced from 4.50% to 4.00%, (b) CPI-based COLA was reduced from 2.60% to 2.20%, (c)investment rate of return was reduced from 8.25%to 8.00%,(d)salary increases were reduced from 3.75%to 3.25%and (e)payroll growth was reduced from 3.75%to 3.25%. 0 For 2019, the following were the most significant changes of assumptions that affect the total OPEB liability since the prior measurement date:(a)the discount rate was increased from 3.24%up to 4.66%. ° Far 2020, the following were the most significant changes of assumprions that affect the total OPEB liabiliry since the prior measurement date:(a)the discount rate was decreased from 4.66%up to 3.56%. ° For 2021, the following were the most significant changes of assumptions that affect the total OPEB liability since the prior measurement date:(a)the discount rate was decreased from 3.56%down to 2.96%. ° For 2022, the following were the most significant changes of assumptions that affect the total OPEB liability since the prior measurement date: (a)the investment rate of return was changed from 8.00%to 7.50%and(b)the discount rate was changed from 2.96%to 2.84%. 151 THIS PAGE IS INTENTIONALLY LEFT BLANK. - 152 - COMBINING STATEMENTS AND INDIVIDUAL FUND SCHEDULES - 153- CITY OF CANTON STARK COUNTY,OHIO FUND DESCRIPTIONS-GOVERNMENTAL FUNDS Major Governmental Funds General Fund The general fund accounts for all financial resources except those required to be accounted for in another fund.The general fund balance is available to the City for any purpose provided it is e�pended or transferred according to the general laws of Ohio. Community and Economic Deve[opment Fund The community and economic development fund is a major special revenue fund that accounts for HUD community and economic development block grant money used for the acquisition of real property, administrative costs, public facilities, and the rehabilitation of real property. American Rescue Plan Act Fund To account for monies received from the Federal government to provide relief to the City to combat the Coronavirus pandemic. Capital Projects Fund The capital projects fund is a major capital projects fund that accounts for the City's capital projects and expenditures of 20 percent of net income tax receipts. Motor Vehicle Purchase Fund The motor vehicle purchase fund is a major capital projects fixnd that accounts for the purchase and maintenance of the City's vehicles and expenditures of 5 percent of net income tax receipts. Nonmajor Special Revenue Funds The special revenue funds are used to account for the proceeds of specific revenue sources(other than major capital projects)that are legally restricted to expenditures for specific purposes. The following are the nonmajor special revenue funds which the City of Canton operates: Street Construction,Maintenance and Repair Fund Required by the Ohio Revised Code to account for that portion of the State gasoline tax and motor vehicle registration fees designated for maintenance of streets within the City. State Highway Fund Required by the Ohio Revised Code to account for that portion of the State gasoline tax and motor vehicle registration fees designated for maintenance of State highways within the City. Municipal Road Fund To account for County grant money used for various street projects approved through the county's municipal road fund. Cornerstone Parking Deck Fund To account for parking fees collected at City owned parking facilities. Mills Industrial Park TIF Fund To account for tax incremental financing(TIF)revenues associated with the Mi11s Industrial Park. Gervasi 1700,LLC TIF Fund To account for tax incremental financing(TIF)revenues associated with Gervasi 1700,LLC. Urban TIF Fund To account for tax increment financing(TIF)associated with the development of luxury lofts at the Historic Onesto Hotel. Lesh Rd./30th St TIF Fund To account for tax incremental financing(TIF)revenues associated with the City's Lesh Rd./30th St.TIF agreement. Crime Lab Fund To account for monies received for the operational costs of the City's crime lab. Court Compufer Fund To account for monies used to maintain court computer systems. Court Funds To account for special revenues received from Canton Municipal Court fines.These include the court capital improvement special projects,legal research,court GPS cost,and ignition interlock/alcohol monitoring funds. Law Department Dispute Reso[ution Fund To provide for the receipt of fees charged for discretionary public services provided to resolve various types of disputes. -154- CITY OF CANTON STARK COUNTY,OHIO FUND DESCRIPTIONS-GOVERNMENTAL FUNDS(CONTINUED) SARTA Area Improve»ienf Fund To account for contributions and donations for Stark Area Regional Transit Authority(SARTA)operations and improvements. Park Department Fund To account for park donations and operational fees charged by the department. Youth Development Fund To account for grant monies used for summer youth employment programs. Federal Forfeiture Fund To account for the proceeds from seizures in federal cases. Probation Award Fund To account for the costs associated with the probation program ran by the municipal court. Enforcement and Education Fund To account for fines which are used for educating the public on the dangers of driving while under the influence of alcohol and the laws governing the operation of a motor vehicle while under the influence of alcohol. Indigent Driver A[coho[Treatment Fund To account for fines collected by the municipal court from persons whose driver's license or permit was suspended for driving under the influence of alcohol.By order of the court,this fund will provide for the cost of rehabilitation for those deemed to be indigent. Law Enforcement Trust Fund To account for monies received from the sale or disposition of seized contraband.Expenditures from this fund are made for law enforcement purposes. Municipal Probation Services Fund To account for fines and forfeitures used for various probation projects. Misdemeanor Com»iuniry Sanetion Grant Fund To account for grant dollars from the Department of Rehabilitation and Correction to be used to meet the needs of low level offenders,divert additional offenders from prison and enhance public safety. Prisoner Housing Fund To account for fines collected and used for the housing and/or treatment of indigent offenders. Local Law Enf'orcement Block Grant Fund To account for block grant monies used for law enforcement purposes. Supp[ementary Po[ice Forces Funds To account for the receipts and expenditures of the Canton police youth corp fund. Police Funds To account for the receipt and expenditure of various grants and donations received by the City's police department.These include the D.A.R.E.program fixnd,probation improvement and incentive grant fixnd,safe neighborhood heroes grant fixnd,police grants and donations fund,COPS hiring program grants,Bulletproof Vest Partnership Fund,police EMS training and equipment grant fund,Use of Force Software Upgrade Grant,and Byrne memorial recovery act fund. Fire Funds To account for the receipts and expenditures of various grants and donations received by the City's fire department. These include the fire grants and donation fund,Assist to firefighters grants,the EMS training and equipment grant fund,the firefighter assistance grant fund,and the Fire FEMA SAFER Grant 2017 fund. VacanUForeclosed Registry Fund To account for registration fees,penalties and interest levied as established in Chapter 1353 of the Codified Ordinances and the administrative fee withheld from the maintenance bond used to enforce laws regarding foreclosed and/or vacant properties. -155- CITY OF CANTON STARK COUNTY,OHIO FUND DESCRIPTIONS-GOVERNMENTAL FUNDS(CONTINUED) Canton Merchandising Fund To account for the receipts and expenditures associated with activity resulting from the sale of various City of Canton merchandise. Jobs Ohio Fund To account for the receipts and expenditures associated with the Jobs Ohio program. Hall of'Fame Village To account for the costs associated with the development and upkeep of the Hall of Fame Village. Neighborhood Development Fund To account for income tax revenues associated with the demolition of vacant properties and improvements of blighted neighborhoods for the enhancement of city residents. Pretrial Award Fund To acount for revenues and expenditures associated with the pretrial award program. Building Escrow Fund To account for receipts from insurance companies,under City and State statutes,necessary to ensure compliance with building codes after a structure fire.Disbursements are normally to property owners upon release from the code enforcement department. Vacant/Foreclosure Depository Fund This fund accounts for deposits held for vacant and foreclosed upon homes. Other Other funds operated by the City are subsidized in part by local,state and Federal monies as well as miscellaneous sources.These include the employee recognition,city hall plaza,recycle Ohio grant,guardrail/attenuator replacement,southeast community center, Thurman Munson Memorial Stadium donation, recovery court ATP fixnd,justice reinvest grant prob., court technology grant, specialized docket grant, clerk of courts administration funds, Centennial plaza maintenance fund, US Department of Justice (Bureau Assistance)fixnd,Project safe neighborhood grant fund and OCJS 2020 project safe neighborhood. Downtown Canton TDD To account for money received from Downtown Canton TDD. Comprehensive Plan Implementation Fund To account for income tax revenues associated for economic and downtown area development,job creation,and expansion and retention. ARPA 2022 Wellness&Recruit To account for ARPA grant money set aside for wellness and recruiting programs. OneOhio Opioid Sett[ement To account for monies received by the City from the opioid settlement to combat the opioid crisis in the City. Centennial Plaza TDD To account for money received from Centennial Plaza TDD. Income Tax Fund To account for the receipts from the assessment of an income taac.This fund is included in the general fund(GAAP basis),but has a separate legally adopted budget(budget basis). This fund is not included in the combining statements for the nonmajor special revenue funds since it is reported in the general fund(GAAP basis);however,the budgetary schedule is presented in this section. Nonmajor Debt Service Funds To account for the accumulation of resources for,and the payment of,general obligation debt principal and interest. General Obligation Bond Retirement Fund To account for the accumulation of resources to pay principal and interest on general obligation debt. Special Assessment Bond Retirement Fund To account for the collection of special assessments levied against properties for the payment of special assessment bonds and related interest costs.No budgetary schedule is presented for this fund as no revenues or expenditures were budgeted in 2021. Nonmajor Capital Projects Funds 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 the proprietary or nonexpendable trust funds. 20I5 Constructiore/Reconstruction Note Fund To account for the portions of a 2015 City note for building renovations and construction being done throughout the City. 2006 Ciry Infrastrucfure Bond Fund To account for the portions of a 2006 City bond issue spent for roadway,storm sewer,and other infrastructure improvements. -156- CITY OF CANTON STARK COUNTY,OHIO FUND DESCRIPTIONS-GOVERNMENTAL FUNDS(CONTINUED) 2006 Recreational Bond Fund To account for the portions of a 2006 City bond issue spent for a water park,baseball field upgrades and other recreational facility improvements. 2006 Construcrion/Reconstruction Bond Fund To account for the portions of a 2006 City bond issue for building renovations and construction being done throughout the City. 2006 Judges Facilities/Ciry Hall Renovation Bond Fund To account for the portions of a 2006 City bond issue spent on a renovation project being undertaken at City Hall. 41st St NW Roadway Reconstruction To account for capital grants and all costs associated with infrastructure improvements related to the 41st St. NW Roadway Reconstrucrion. 2022Infrastructure Bond To account for the portion of the 2022 General Obligation Bonds for the salt storage and the Service Center upgrade projects. Ilth SL NWlmprovement Project Fund To account for capital grants and all costs associated with the l lth Street NW infrastructure road project. Tuscarawas Street W.Corridor Safety Project Fund To account for loan proceeds and all costs related to the Tuscarawas Street West Corridor Safety project. 49th Sf NW Storm Sewer Rehab Project To account for loan proceeds and all costs related to the 49th St NW Storm Sewer Rehab Project. 3rd Street SE Bridge Proj GP 1167 To account for capital grants and all costs related to the 3rd Street Bridge project. 36th Street NW Storm Roadway Fund To account for capital grants and all costs related to the 36th Street NW Storm Roadway project. 3rd Street SE Resurfacing Project Fund To account for capital grants and all costs related to the 3rd Street resurfacing project. 13th Street NW Roadway Reconstruc6on Fund To account for capital grants and all costs associated with infrastructure improvements related to the 13th Street NW Roadway Mahoning Rrl Corridor Project Fund To account for capital grants and all costs associated with infrastructure improvements to the Mahoning Road Corridor. 30th Sfreet NW Resurfacing Project Fund To account for capital grants and all costs related to the 30th Street NW Resurfacing project. Steese Area 39th ST NW Sewer Project Fund To account for capital grants and all costs related to the Steese Area 39th St NW Sewer project. Colonial BLVD Reconstruction Project Fund To account for capital grants and all costs related to the Colonial BLVD Reconstruction project. -157- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERALFUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud¢et Actual (Nesative) Revenues: Properry and othertaxes $ 2,281,000 $ 2,673,150 $ 392,150 Municipal income taxes 38,875,000 41,997,589 3,122,589 Chargesforservices 7,378,000 7,253,878 (124,122) Liceuses,permits,and fees 791,000 756,840 (34,160) Fines and forfeitures 136,750 109,305 (27,445) Intergovernmeutal 6,651,750 7,503,417 851,667 Interestandinveshnentincome 617,500 827,257 209,757 Rentalincome 48,000 3,940 (44,060) Contributiousand dona[ions 2,500 3,640 1,140 Operatinggrants 303,000 198,310 (104,690) Other 12,022,216 7,917,710 (4,104,506) Total revenues 69,106,716 69,245,036 138,320 Expenditures: Current: General operating: Current: General Government Codes and permits General Government-Support Administration: Materials and supplies 7,650 4,937 2,713 Contractual services 4,398,716 4,229,221 169,495 Capital outlay 30,995 29,495 1,500 Other 29,350 2,307 27,043 Total Gerier�al Government-Support Arlministration 4,466,711 4,265,960 200,751 Service Director-Service Directar Administration: Personal services 58,303 51,421 6,882 Materials and supplies 200 - 200 Contractual services 13,291 10,190 3,101 Other 3,750 1,901 1,849 Total Service Director-Service Directar Administration 75,544 63,5 l2 12,032 Service Director-Purchase Administration: Personal seroices 287,514 281,140 6,374 Materials and supplies 262,761 229,136 33,625 Contractual services 8,739 6,822 1,917 Capitaloutlay 6,142 - 6,L42 Other 7,518 6,220 1,298 TotalServiceDirector-PurchaseAdministration 572,674 523,318 49,356 Service Director-Amiexafiori: Personal seroices 6,300 94 6,206 Contrac[ual services 5,000 300 4,700 TotalServiceDirector-Amteeation 11,300 394 IQ906 Building and Maintenance-Other Building: Personal seroices 92Q272 848,073 72,199 Materials and supplies 152,242 147,154 5,088 Contractual services 1,007,221 960,042 47,179 Capital outlay 32,000 31,842 158 Other 13,457 11,212 2,245 Total Building and Maintenmtce-Other Building 2,125,192 1,998,323 126,869 (Continued) -158- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERAL FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud¢et Actual (Nesative) Mayor-Administration: Personalservices 407,219 393,817 13,402 Materials and supplies 9,217 2,798 6,419 Contractual services 63,810 5,460 58,350 Other I5,000 12,819 2,181 TotalMcryor-Administr�ation 495,246 414,894 8Q352 Mayor-Planning Department: Personal seroices 243,890 240,324 3,566 Materials and supplies 3,600 2,717 883 Contrac[ual services 4,150 3,700 450 Capital outlay 1,500 1,500 - Other 900 464 436 TotalMcryor-PlanningDepartment 254,040 248,705 5,335 Mayor-Human Resources Admiiaisiration: Personal services 97,163 89,684 7,479 Materials and supplies 14,984 9,535 5,449 Contractual services 67,107 28,144 38,963 Capital outlay 1,000 - 1,000 Other 1,744 1,109 635 Total Mayor-Human Resources Adminisiration 181,998 128,472 53,526 Council-Council Admirtistration: Personal services 644,185 634,006 IQ179 Materials and supplies 3,928 2,105 1,823 Contractual services 68,918 56,080 12,838 Other ]OS 105 Total Council-Council Admiriistratian 717,136 692,191 24,945 Courts/Judge-Judge Adminislradon: Personal services 2,133,935 1,986,699 147,236 Materials and supplies 76,589 61,482 I5,107 Contractual services 204,375 184,403 19,972 Other 67,491 59,026 8,465 TotalCourts/Judge-JudgeAdminishation 2,482,390 2,291,610 190,780 Courts/C[erk-C[erk of Courts Adminisbation: Personal seroices 1,773,450 1,707,004 66,446 Materials and supplies 27,200 24,269 2,931 Contractual services 37,200 33,138 4,062 Other 1,000 500 500 Total Courts/Clerk-Clerk af Courts Administration 1,838,850 1,764,911 73,939 Law Directar-Law Administration: Personal services 1,633,148 1,555,245 77,903 Materials and supplies 17,141 14,722 2,419 Contractual services 14,550 9,487 5,063 Other 35,325 18,920 16,405 Total Law Directar-Law Administration 1,700,164 1,598,374 101,790 Law-Non Operationa[Legal Exp: Materials and supplies 9,079 7,251 1,828 Contractual services 121,782 78,247 43,535 Capital outlay �88 Z�8 - Other 175,000 79,284 95,716 Total LaK�-Non OperationalLegal Exy 306,149 165,070 141,079 Auditor-Auditor Administration: Personal services 1,164,575 1,137,833 26,742 Materials and supplies 19,229 17,350 1,879 Contractual services 12,788 10,092 2,696 Other 188,867 106,129 82,738 Tota[Auditor-Auditor Administr-ation ],385,459 1,271,404 114,055 Auditor-Legally Binding Expenses: Contractua]services 654,011 654,010 1 Other 6Q000 59,999 1 Total Auditor-Legally Binding Expenses 714,011 714,009 2 (Continued) -159- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERAL FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variancc with Final Budget Final Positive Bud¢et Actual (Nesative) Trea.surer-Admirtistration&Operations: Personal seroices 30L,845 295,596 6,249 Materials and supplies 843 343 500 Contractual services 133,954 104,314 29,640 Other 467,775 463,827 3,948 Total Treasurer-Administration&Operations 904,417 864,080 4Q337 Board of Commission-Civi[Service: Personalservices 387,860 373,789 14,071 Materials and supplies 15,512 12,104 3,408 Contractual services 119,701 78,977 4Q724 Capital outlay 3,040 3,038 2 Other 4,750 3,924 826 Total Board of Commission-Civil Service 53Q863 471,832 59,031 Cantan He[ping Canton Materials and supplies 2,280 1,727 553 Contrac[ual services 220 220 Total Canton Helping Canton 2,500 1,947 553 Managementlnformation Systems: Personal services 1,272,160 1,245,609 26,551 Materials and supplies 17,112 14,727 2,385 Contractual services 291,733 290,843 890 Other 681 681 Total Managementlnformatiort Systems 1,581,686 1,551,860 29,826 Total General Governmeut 20,346,330 19,03Q866 1,315,464 Securiry of Persons and Property: Safery Director�-Safety Dimctor Administration: Personalservices 215,567 202,233 13,334 Materials and supplies 300 - 300 Contrac[ual services 1,875 1,675 200 Other 575 575 Total Safery Director�-Safety Director,4dministration 218,317 203,908 14,409 (Continued) -160- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERAL FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variancc with Final Budget Final Positive Bud¢et Actual (Nesative) Safery Director-Code EnforcementAdministration: Contractual services 18Q000 125,199 54,801 Total Safery Director� -Code Enforcement Administratian 18Q000 125,l99 54,801 Sajety Director-School Police Administration: Personalservices 57,405 43,214 14,191 Total Sajety Director-School Poliee Administration 57,405 43,214 14,191 Safery Director-Central Conimunication Administration: Personal services 1,881,7L0 1,863,553 18,157 Materials and supplies 12,866 9,549 3,317 Contractual services 42,719 37,069 5,650 Other 4,250 1,956 2,294 Total Safery Director-Central Communication Administr�ation 1,94L,545 1,912,127 29,418 Police Administration: Personalservices 17,804,631 17,449,181 355,450 Materials and supplies 718,011 671,477 46,534 Contractual services ],398,921 1,355,146 43,775 Capital outlay 128,853 128,647 206 Other ]02,215 71,734 30,481 TotalPoliceAdministration 20,152,631 19,676,185 476,446 Fire Administration: Personalservices 17,419,L00 17,212,188 206,912 Materials and supplies 76Q909 758,399 2,510 Contractual services 96Q939 956,319 4,620 Capitaloutlay 266,482 266,482 - Other 123,767 115,344 8,423 TotalFireAdminisn�ation L9,531,197 19,308,732 222,465 TrafJic Divisians-TrafJic Engineer/Park�'ng Meter: Materials and supplies 9,000 6,250 2,750 Contractual services 21,000 700 2Q300 Total TrafJic Divisians-TrafJic Engrneer/Parla'ng Meter� 30,000 6,950 23,050 Total Security of Persons and Property 42,1ll,095 41,276,315 834,780 (Continued) -161- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERAL FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variancc with Final Budget Final Positive Bud¢et Actual (Nesative) Transporta[ion: Engirieering-Daily Operatians: Personal services 62,489 6Q406 2,083 Materials and supplies 504,575 432,544 72,031 Contractual services 34,105 27,285 6,820 Capital outlay 35,323 35,323 - Other 450 450 Total Engineering-Daily Operations 636,942 555,558 81,384 Salt Storage Facility Project: Capital outlay SOQ000 477,906 22,094 Total Salt Storage Facility Project: 500,000 477,906 22,094 Street-Maintertance: Personalseroices 449,039 416,120 32,919 Materials and supplies 49,746 45,894 3,852 Contractual services L,491,200 1,465,222 25,978 Capitaloutlay 89,500 89,500 - Other 15,353 6,678 8,675 Total Sbeet-Maintenance 2,094,838 2,023,414 71,424 Total Transportation 3,23 L,780 3,056,878 174,902 Community Environment: Community Dwelopment-Conimunity DwelapmentAdministr�arion: Personalservices 1,044,886 997,225 47,661 Materials and supplies 3,779 1,749 2,030 Contractual services L45,595 132,933 12,662 Other 192,042 187,730 4,312 TotalCommunityDevelopment-CommunityDwelapmeritAdministr�ation 1,386,302 1,319,637 66,665 Community Involvement: Personalservices 2,080,727 2,053,562 27,165 Commimity Improvement Corporation: Other 50,000 SQ000 Total Community Environment 3,517,029 3,423,799 93,830 (Continued) -162- CITY OF CANTON STARK COUNTY,OffiO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERAL FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Neeative) Leisure Time Ac[ivi[ies: Mayor-Baseball: Materials and supplies 28Q049 279,215 834 Contractual services 1,217,799 1,215,008 2,791 Capitaloutlay 1,155,366 L,155,366 Tata1 Mayor-Baseball 2,653,214 2,649,589 3,625 Civic Ceriter-Civic CeriterAdminisn�ation: Contractual services 678,301 673,302 4,999 Tatal Civic Center-Civic Center Adminish�a[ion 678,301 673,302 4,999 Tota!leisure time activities 3,331,515 3,322,891 8,624 Deb[Service: Principal retirement 5,979,242 5,28Q648 698,594 Interest and fiscal charges 30Q678 108,872 191,806 Tatal Debt Service 6,279,920 5,389,520 89Q400 Total expenditures 78,817,669 75,499,669 3,318,000 Excess of expenditures over revenues (9,71 Q953) (6,254,633) 3,456,320 Other Tinancing soorces(oses): Sale of capital assets - 69,483 69,483 Issuance of notes 4,645,000 3,95Q000 (695,000) Transfers in 652,600 642,600 (IQ000) Transfers(out) (3,616,446) (3,241,446) 375,000 Advances in 1,050,000 721,964 (328,036) Advances(out) Q,978,731) (1,978,731) Total other financing sources(uses) 752,423 163,870 (588,553) Net chanQe in fund balance (8,958,530) (6,09Q763) 2,867,767 Fund balance at beginning of year 3,531,492 3,531,492 - Prior year encumbrances appropriated 7,868,342 7,868,342 Fund balance at end of year $ 2,441,304 $ 5,309,071 $ 2,867,767 -163- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COMMUNITY AND ECONOMIC DEVELOPMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 17,915,445 $ 4,169,581 $ (13,745,864) Other 175,345 2,113,292 1,937,947 Total revenues 18,090,790 6,282,873 (ll,807,917) Expenditures: Current: Community Environment: Community DevelopmentAdminisU^ation: Materials and supplies 68,118 26,131 41,987 Contractual services 563,931 258,333 305,598 Capital outlay 1,499 1,499 - Other 12,766,580 5,181,029 7,585,551 TotalCommunityDevelopmentAdministration 13,400,128 5,466,992 7,933,136 Federal Stimu[us Funding: Materials and supplies 1,000 - 1,000 Contractual services 2,621,407 84,613 2,536,794 Other 1,725,603 1,188,506 537,097 Total Federal Stimulus Funding 4,348,010 1,273,119 3,074,891 Fair Housing Administration: Personal services 585 585 - Materials and supplies 500 - 500 Contractual services 22,161 17,190 4,971 Other 65,323 57,259 8,064 Total Fair Housing Administration 88,569 75,034 13,535 (Continued) -164- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COMMUNITY AND ECONOMIC DEVELOPMENT FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Vienna Woods: Other 255,025 24,999 230,026 Total Fair Housing Administration 255,025 24,999 230,026 Deht service: Principal retirement 3,000 2,542 458 Interest and fiscal charges 714 593 121 Total Debt Service 3,714 3,135 579 Total expenditures 18,095,446 6,843,279 11,252,167 Excess(deficiency)of revenues over(under)expenditures (4,656) (560,406) (555,750) Other financing sources: Advances in - 100,000 100,000 Advances out (102,300) (103,100) (800) Total Other Financing Sources (102,300) (3,100) 99,200 Net change in fund balance (106,956) (563,506) (456,550) Fund balance(deficit)at beginning of year (2,480,149) (2,480,149) - Prior year encumbrances appropriated 3,035,030 3,035,030 - Fund balance(deficit)at end of year $ 447,925 $ (8,625) $ (456,550) -165- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) AMERICAN RESCUE PLAN ACT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud¢et Actual (Nesative) Revenues: Intergovernmental $ 31,806,611 $ 31,806,611 $ - Other 1,001,141 I,OOl,141 Totalrevenues 31,806,611 32,807,752 1,001,141 Expenditures: Current: Generaloperating: Current: General Government General Government-Support Administration: Contractual services 4,60Q000 1,820,787 2,779,213 Capital outlay 1,85Q970 1,850,036 934 Other 21,800,800 12,749,171 9,051,629 Total General Government-Support Administration 28,251,770 16,419,994 11,831,776 Lnvest Health MedicaUFood Project Other 1,30Q000 1,30Q000 Total InvestHealth Medical/Food Project 1,30Q000 1,30Q000 31st ST NE Water[ine&Storm Sewer Project Contractual services 153,000 152,550 450 Tota131st ST NE Waterline&Starm Sewer Project 153,000 152,550 450 COPLD-19 Stimulus Contractual services 442,000 292,000 I50,000 Other 23,554,726 7,171,910 16,382,816 Total COPlD-19 Stimulus 23,996,726 7,463,910 16,532,816 Total General Government 53,701,496 25,336,454 28,365,042 COVID-!9 Stimulus Materials and supplies 11,000 1],000 - Contractual services 306,640 306,640 - Capitaloutlay 1,41Q000 1,406,576 3,424 Other 3,568,128 3,489,813 78,315 Total COVID-19 Stimulus 5,295,768 5,214,029 81,739 Total Securiry of Persons and Property 5,295,768 5,214,029 81,739 Leisure Time Activities�, Purk Other 2,796,078 2,796,078 Total Park 2,796,078 2,796,078 Total Leisure Time Activities 2,796,078 2,796,078 Total expenditures 61,793,342 33,346,561 28,446,781 NetchanQein fund balance (29,986,731) (538,809) 29,447,922 Fund balance at beginning of year 19,533,090 19,533,090 - Prior year encumbrances appropriated 10,453,641 IQ453,641 Fund balance atend ofyear $ $ 29,447,922 $ 29,447,922 166 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) CAPITAL PROJECTS FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive BudQet Actual (Ne�ative) Revenues: Municipal income taxes $ 11,600,000 $ 11,8ll,822 $ 211,822 Capital grants 10,000 - (10,000) Other 40,000 49,186 9,186 Total revenues 11,650,000 11,861,008 211,008 Expenditures: Capital Outlay: Safety Director: Police Department-Police Administration 264,025 232,933 31,092 Fire Department-Fire Administration 605,456 605,220 236 Total Safety Director 869,481 838,153 31,328 Traffic Diviszons: Traffic Signal 95,043 89,401 5,642 Service Director: Service Director Administration 473,722 407,514 66,208 Engineering Administration 9,439,274 8,253,788 1,185,486 Engineering-Colonial Blvd Reconstruction Project 1,330,000 1,318,687 11,313 PurchasingAdministration 28,391 26,106 2,285 Motor vehicle administration 10,200 10,200 - Engineering-l lth Street Improvement Project 198,908 198,908 - Street Administration 318,537 189,869 128,668 StreetPaving 2,228,259 1,768,915 459,344 Engineering-36th Street NW Storm,Roadway,Water,Sewer 83,600 - 83,600 Engineering-Colonial Blvd Reconstruction Project Phase 2 232,519 232,519 - Building Maintenance Administration 1,098,078 755,547 342,531 Collection System Department 136,445 90,023 46,422 Engineering-Salt Storage Facility Pro: 323,350 320,060 3,290 Engineering-Steese Area(39th St.NW)Project 562,821 562,821 - Engineering-Urban Forestry 59,719 30,078 29,641 Engineering-Tusc St W Corr Safety Project 92562 82,361 32,361 50,000 TotalServiceDirector 16,606,184 14,197,396 2,408,788 Water: 37th Street Water Sewer Street Improvement Project ll0,458 110,458 - Community Development: Community Development Administration 15,000 8,478 6,522 Managementlnformation Systems: Information Technology Manager 720,957 689,563 31,394 Council: Council Administration 38,624 34,916 3,708 Auditor: Auditor Administration 225,683 204,594 21,089 (Continued) -167- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) CAPITAL PROJECTS FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive BudQet Actual (Ne�ative) Law: Law-Administration 17,730 13,342 4,388 Income TaY: Income Tax-Administration 95,071 49,719 45,352 Clerk: Clerk of Courts Administration 22,910 22,910 - Treasurer: Treasurer-Administration 25,000 - 25,000 Total Capital Outlay 18,842,141 16,258,930 2,583,2ll Debt Service: Principal retlrement: Various purposeloans 767,903 767,835 68 Interest and Fiscal Charges: Various purpose loans 108,424 108,217 207 Total Debt Service 876,327 876,052 275 Total expenditures 19,718,468 17,134,982 2,583,486 Excess of expenditures over revenues (8,068,468) (5,273,974) 2,794,494 Other financing sources: Sale of assets - 11,150 11,150 Loan proceeds-OPWC 255,000 110,458 (144,542) Total other financing sources 255,000 121,608 (133,392) Net change in fund balance (7,813,468) (5,152,366) 2,661,102 Fund balance at beginning of year 3,424,556 3,424,556 - Prior year encumbrances appropriated 5,418,819 5,418,819 - Fund balance at end of year $ 1,029,907 $ 3,691,009 $ 2,661,102 -168- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MOTOR VEHICLE PURCHASE FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Municipal income taxes $ 2,523,064 $ 2,624,849 $ 101,785 Other - 14,984 14,984 Total revenues 2,523,064 2,639,833 116,769 Expenditures: Capital Outlay: Safety Director.• Central Communication Administration 100,000 88,552 11,448 Police Department-Police Administration 813,040 804,329 8,7ll Fire Department-Fire Administration 413,344 413,344 - Total Safery Director 1,326,384 1,306,225 20,159 Traffic Divisions: Traffic Divisions-Engineer Administration 12,500 12,500 - Traffic Divisions-Traffic Sign&Paint 11,000 ll,000 - Traffic Divisions-Traffic Signal 85,000 20,000 65,000 Total Traffic Divisions 108,500 43,500 65,000 Service Director.• Engineering Administration 9,500 9,500 - Street Administration 849,719 686,964 162,755 Street Paving 230,000 230,000 - Daily Operations 600 600 - Building Maintenance Administration 3,050 3,050 - Collection System Department 8,850 8,850 - Total Service Director 1,101,719 938,964 162,755 Civil Service: Civil Service Administration 30,000 30,000 - Mayor: Mayor Administration 1,250 1,250 - Managementlnformation Systems: Information Technology Manager 1,750 1,750 - Judges: Judge Administration 11,000 11,000 - (Continued) -169- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MOTOR VEHICLE PURCHASE FUND(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Debt service: Principal retirement: Financed purcahse 396,410 395,608 802 Total Principle retirement: 396,410 395,608 802 Interest and Fiscal Charges: Financed purcahse 34,562 34,431 131 Interest and Fiscal Charges: 34,562 34,431 131 Total Debt Service 430,972 430,039 933 Total expenditures 3,011,575 2,762,728 248,847 Excess of expenditures over revenues (488,511) (122,895) 365,616 Other financing sources: Saleofassets 30,000 11,180 (18,820) Net change in fund balance (458,Sll) (ll 1,715) 346,796 Fund balance at beginning of year 419,038 419,038 - Prior year encumbrances appropriated 195,982 195,982 - Fund balance at end of year $ 156,509 $ 503,305 $ 346,796 -170- CITY OF CANTON STARK COUNTY,OHIO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31,2022 Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Assets: Equiry in pooled cash and cash equivalents $ 20,308,629 $ 109,459 $ 4,535,752 $ 24,953,840 Cash with fiscal agent - 3,019 3,019 Receivables: Properry and other local taxes 4,588,021 - - 4,588,021 Municipal income taxes 1,072,595 - - 1,072,595 Accounts 593,484 6,697 143,216 743,397 Accrued interest 1,681 - 13,989 15,670 Due from other governments 2,926,687 - 77,287 3,003,974 Loansreceivable 11,445,1ll - - ll,445,ll1 Leases receivable 642,319 - - 642,319 Materials and supplies inventory 30,038 - - 30,038 Prepayments 73,517 - - 73,517 Total assets $ 41,682,082 $ 119,175 $ 4,770,244 $ 46,571,501 Liabilities: Accounts payable $ 1,179,206 $ - $ 2,005,384 $ 3,184,590 Accrued wages and benefits payable 167,976 - - 167,976 Due to other funds 6,583,239 - - 6,583,239 Due to other governments 66,483 - - 66,483 Deposits held and due to others 188,448 - - 188,448 Payroll withholding payable 67,522 - - 67,522 Totalliabilities 8,252,874 - 2,005,384 10,258,258 Deferred intlows of resources: Property taxes levied for the next fiscal year 3,630,429 - - 3,630,429 Delinquent property tax revenue not available 957,592 - - 957,592 Leases 634,648 - - 634,648 Tncome tax revenue not available 197,386 - - 197,386 Intergovernmental revenue not available 1,070,547 - - 1,070,547 Charges for services revenue not available 251,398 6,697 - 258,095 Miscellaneous revenue not available ll 4,517 - - ll 4,517 Total deferred inflows of resources 6,856,517 6,697 - 6,863,214 Fund balances: Nonspendable 103,555 - - 103,555 Restricted 22,797,240 ll2,478 4,186,280 27,095,998 Committed 3,958,714 - - 3,958,714 Unassigned(deficit) (286,818) - (1,421,420) (1,708,238) Total fund balances 26,572,691 ll2,478 2,764,860 29,450,029 Total liabilities,deferred inflows of resources,and fund balances $ 41,682,082 $ 119,175 $ 4,770,244 $ 46,571,501 -171- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Nonmajor Nonmajor Nonmajor Total Nonmajor Special Revenue Debt Service Capital Projects Governmental Funds Funds Funds Funds Revenues: Property and other local taxes $ 3,796,393 $ - $ - $ 3,796,393 Municipal income taxes 8,975,827 - - 8,975,827 Charges for services 2,567,721 - - 2,567,721 Fines and forfeitures 319,098 - - 319,098 Intergovernmental 4,433,096 - - 4,433,096 Interest and investment income 43,731 4,817 35,801 84,349 Rental income 240,627 - - 240,627 Contributions and donations 609,951 - - 609,951 Operating grants 945,356 - - 945,356 Capital grants 257,782 - 1,498,446 1,756,228 Payment in lieu of taxes 1,605,218 - - 1,605,218 Otherlocaltaxes 871,831 - - 871,831 Other 613,002 - 143,216 756,218 Total revenues 25,279,633 4,817 1,677,463 26,961,913 Expenditures: Current General government 4,222,625 - - 4,222,625 Security of persons and property 2,881,113 - - 2,881,113 Transportation 6,530,598 - - 6,530,598 Leisure rime acrivities 6,229,448 - - 6,229,448 Capital outlay 369,116 - 3,625,095 3,994,2ll Debt service: Principal retirement 15,742 - 6,500,000 6,515,742 Interest and fiscal charges 3,025 - 55,542 58,567 Bond issuance costs - - 49,186 49,186 Total expenditures 20,251,667 - 10,229,823 30,481,490 Excess(deficiency)of revenues over(under)expenditures 5,027,966 4,817 (8,552,360) (3,519,577) Other financing sources: Bondissuance - - 7,249,186 7,249,186 Issuance of notes - - 3,200,000 3,200,000 Lease transactions 145,379 - - 145,379 Transfers in 18,846 - 205,000 223,846 Total other financing sources 164,225 - 10,654,186 10,818,411 Net change in fund balances 5,192,191 4,817 2,101,826 7,298,834 Fund balances at beginning of year 21,380,500 107,661 663,034 22,151,195 Fund balanccs at end of year $ 26,572,691 $ 112,478 $ 2,764,860 $ 29,450,029 -172- TffiS PAGE IS INTENTIONALLY LEFT BLANK. - 173 - CITY OF CANTON STARK COUNTY,OHIO COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS DECEMBER 31,2022 Street Construction, Cornerstone Maintenance, State Municipal Parking Mills Industrial and Repair Highway Road Deck Park TIF Assets: Equity in pooled cash and cash equivalents $ 821,924 $ 214,571 $ A96,805 $ 79,312 $ 464,320 Receivables: Property and other taxes - - - - - Income taxes - - - - - Accounts 1,569 - - - - Accrued interest - - - - - Due from other governments 1,454,150 96,487 - - - Loans receivable - - - - - Leases receivable - - - - - Materials a�d supplies inve�tory 3Q038 - - - - Prepayments 25,605 1,660 - 198 - Total assets $ 2,333,286 $ 312,718 $ 896,805 $ 79,510 $ 464,320 Liabilities: Accountspayable $ 56,872 $ 7,583 $ - $ 7,280 $ - Accrued wages and benefits payable 77,728 3,845 - - - Due to other funds 917 141 - - - Due to other governments 12,009 594 - 40,000 - Deposits held and due to others - - - - - Payroll withholding payable 23,842 1,641 - - - Totalliabilities 171,368 13,804 - 47,280 - Deferred inflows of resources: Properry taxes levied for the next fiscal year - - - - - Delinquent properry tax revenue not available - - - - - Leases - - - - - Income tax revenue not available - - - - - Intergovernmental revenue not available 800,523 49,288 - - - Charges for services revenue not available - - - - - Miscellaneous revenue not available - - - - - Total deferred inflows of resources 800,523 49,288 - - - Fund balances: Nonspendable 55,643 1,660 - 198 - Restricted 1,305,752 247,966 896,805 32,032 464,320 Committed - - - - - Unassigned(deficit) - - - - - Total fund balances(deficit) 1,361,395 249,626 896,805 32,230 464,320 Total liabilities,deferred inflows of resources,and fund balances $ 2,333,286 $ 312,718 $ 896,805 $ 79,510 $ 464,320 -174- Law Department Gervasi 1700, Lesh Rd/30th Crime Court Dispute SARTA Area LLC TIF St TIF Lab Computer Court Resolution Improvement $ 80,225 $ 72,386 $ 174,273 $ 232,971 $ 1,104,278 $ 1,054 $ 642 - - 1,756 709,116 40,681 - - - - - 1,146 3,127 - - $ 80,225 $ 72,386 $ 176,029 $ 943,233 $ 1,148,086 $ 1,054 $ 642 $ - $ - $ - $ 4,820 $ 40,975 $ - $ - - - - - 624 - - - - - - 2,827 - - - - - 4,820 44,426 - - - - - - 6,605 - - - - - - 6,605 - - - - - 1,146 3,127 - - 80,225 72,386 176,029 937,267 1,093,928 1,054 642 80,225 72,386 176,029 938,413 1,097,055 1,054 642 $ 80,225 $ 72,386 $ 176,029 $ 943,233 $ 1,148,086 $ 1,054 $ 642 (Continued) -175- CITY OF CANTON STARK COUNTY,OHIO COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS(CONTINUED) DECEMBER 31,2022 Enforcement Indigent Driver Park Youth Federal Probation and Alcohol Department Development Forfeiture Award Education Treatment Assets: Equiry in pooled cash and cash equivalents $ 3,767,892 $ 4,470 $ 140,699 $ 12,995 $ 28,962 $ 145,403 Receivables: Property and other taxes 4,588,021 - - - - - Income taxes - - - - - - Accounts 613 - - - - - Accrued interest 42 - - - - - Due from other governments - - - - 393 1,058 Loansreceivable - - - - - - Leases receivable 15,931 - - - - - Materials and supplies inventoty - - - - - - Prepayments 30,177 - 240 - - - Total assets $ 8,402,676 $ 4,470 $ 140,939 $ 12,995 $ 29,355 $ 146,461 Liabilities: Accounts payable $ 126,183 $ - $ - $ - $ - $ - Accrued wages and benefits payable 57,019 - - - - 2,389 Due to other funds 1,630 - - - - - Due to other governments 9,341 - - 334 - 35 Deposits held and due to others - - - - - - Payroll withholding payable 28,118 - - - - 1,032 Total Liabilities 222,291 - - 334 - 3,456 Deferred inflows of resources: Property taxes levied for the next fiscal year 3,630,429 - - - - - Delinquent property tax revenue not available 957,592 - - - - - Leases 15,726 - - - - - Income tax revenue not available - - - - - - Intergovernmental revenue not available - - - - - - Charges for services revenue not available - - - - - - Miscellaneous revenue not available - - - - - - Total deferred inflows of resources 4,603,747 - - - - - Fund balances: Nonspendable 30,177 - 240 - - - Restricted 21,813 4,470 140,699 12,661 29,355 143,005 Commireed 3,524,648 - - - - - Unassigned(deficit) - - - - - - Totalfund balances(deficit) 3,576,638 4,470 140,939 12,661 29,355 143,005 Total Liabilities,deferred inflows of resources,and fund balances $ 8,402,676 $ 4,470 $ 140,939 $ 12,995 $ 29,355 $ 146,461 -176- Misdemeanor Law Municipal Community Local Law Enforcement Probation Sanction Prisoner Enforcement Su�plementary Trust Services Grant Housing Block Grant Police Forces Police Fire $ 62,719 $ 423,037 $ 84,510 $ 139,253 $ 8,014 $ 108 $ 104,753 $ 216,298 2,090 10,835 85,302 1,548 - - 208,661 - - 2,332 2,174 - - - - - $ 64,809 $ 436,204 $ 171,986 $ 140,801 $ 8,014 $ 108 $ 313,414 $ 216,298 $ - $ 8,377 $ - $ 2,000 $ - $ - $ - $ 155,620 - 2,385 5,043 - - - - - - - - - 14,517 - 282,285 188,463 - 369 779 - - - - - - 1,012 2,161 - - - - - - 12,143 7,983 2,000 14,517 - 282,285 344,083 - - 42,651 - - - 131,182 - - - 42,651 - - - 131,182 - - 2,332 2,174 - - - - - 64,809 421,729 119,178 138,801 - 108 - - - - - - (6,503) - (100,053) (127,785) 64,809 424,061 121,352 138,801 (6,503) 108 (100,053) (127,785) $ 64,809 $ 436,204 $ 171,986 $ 140,801 $ 8,014 $ 108 $ 313,414 $ 216,298 (Continued) -177- CITY OF CANTON STARK COUNTY,OHIO COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS(CONTINUED) DECEMBER 31,2022 Vacant/ Foreclosed Canton HOF Neighborhood Pretrial Registry Merchandising Jobs Ohio Village Development Award Assets: Equity in pooled cash and cash equivalents $ 272,082 $ 15,213 $ - $ 15,788 $ 1,251,648 $ 4,451 Receivables: Property and other taxes - - - - - - Income taxes - - - - 153,228 - Accounts 64,071 - - 283,398 - - Accrued interest - - - - - - Due from other governments - - - 112,636 - - Loans receivable - - - - - - Leases receivable - - - - - - Materials and supplies inventory - - - - - - Prepayments 430 - - - - - Total assets $ 336,583 $ 15,213 $ - $ 411,822 $ 1,404,876 $ 4,451 Liabilities: Accounts payable $ 4,678 $ - $ - $ 54,392 $ - $ - Accrued wages and benefits payable 923 - - - - - Due to other funds 927 - 5,735 - - - Due to other governments 142 - - - - - Deposits held and due to othexs - - - - - - Payroll withholding payable 429 - - - - - Totalliabilities 7,099 - 5,735 54,392 - - Deferred inflows of resources: Properry taxes levied for the next fiscal year - - - - - - Delinquent properry tax revenue not available - - - - - - Leases - - - - - - Income tax revenue not available - - - - 28,198 - Intergovernmental revenue not available - - - - - - Charges for services revenue not available - - - 244,793 - - Miscellaneous revenue not available - - - 108,281 - - Total deferred inflows of resources - - - 353,074 28,198 - Fund balances: Nonspendable 430 - - - - - Restricted 329,054 15,213 - 4,356 1,376,678 4,451 Committed - - - - - - Unassigned(deficit) - - (5,735) - - - Total fund balances(deficit) 329,484 15,213 (5,735) 4,356 1,376,678 4,451 Total liabilities,deferred inflows of resources,and fund balances $ 336,583 $ 15,213 $ - $ 411,822 $ 1,404,876 $ 4,451 -178- Vacant/ Downtown Comprehensive ARPA 2022 OneOhio Centennial Building Foreclosure Canton Plan Wellness& O�ioid Plaza Escrow Depository Other TDD Implement Recruit Settlement TDD $ 188,448 $ 2,301,755 $ 475,293 $ 296,106 $ 6,053,119 $ 124,400 $ 27,385 $ 1,067 - - - - 919,367 - - - - - 46,373 - 102,528 - 94,873 59 - - 1,639 - - - - - - - 93,806 70,095 38,073 - - - - - - - 11,445,I11 - - - - - 626,388 - - - - - - - 4,285 - 2,143 - - - $ 188,448 $ 2,301,755 $ 1,247,784 $ 366,201 $ 18,560,341 $ 124,400 $ 122,258 $ 1,126 $ - $ - $ 4,875 $ - $ 705,551 $ - $ - $ - - - 9,471 4,456 4,717 - - - - - 116,356 - 5,800,000 124,400 - 47,868 - - 1,463 65 728 - - - 188,448 - - - - - - - - - 4,202 - 2,258 - - - 188,448 - 136,367 4,521 6,513,254 124,400 - 47,868 - - 618,922 - - - - - - - - - 169,188 - - - - - 46,903 - - - - - - - 6,236 - - - - - - - 672,061 - 169,188 - - - - - 4,285 - 2,143 - - - - 2,301,755 1,005 361,680 11,875,756 - 122,258 - - - 434,066 - - - - - - - - - - - - (46,742) - 2,301,755 439,356 361,680 11,877,899 - 122,258 (46,742) $ 188,448 $ 2,301,755 $ 1,247,784 $ 366,201 $ 18,560,341 $ 124,400 $ 122,258 $ 1,126 (Continued) -179- CITY OF CANTON STARK COUNTY,OHIO COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS(CONTINUED) DECEMBER 31,2022 Total Nonmajor Special Revenue Funds Assets: Equity in pooled cash and cash equivalents $ 20,308,629 Receivables: Property and other taxes 4,588,021 Income taxes 1,072,595 Accounts 593,484 Accrued interest 1,681 Due from other governments 2,926,687 L,oa�s receivable 11,445,111 Leasesreceivable 642,319 Materials a�d supplies inve�tory 30,038 Prepayments 73,517 Total assets $ 41,682,082 Liabilities: Accountspayable $ 1,179,206 Accrued wages and benefits payable 167,976 Due to other funds 6,583,239 Due to other governments 66,483 Deposits held and due to othexs 188,448 Payroll withholding payable 67,522 Total liabilities 8,252,874 Deferred inflows of resources: Properry taxes levied for the next fiscal year 3,63Q429 Delinquent properry tax revenue not available 957,592 Leases 634,648 Income tax revenue not available 197,386 Intergovernmental revenue not available 1,070,547 Charges for services revenue not available 251,398 Miscellaneous revenue not available 114,517 Total deferred inflows of resources 6,856,517 Fund balances: Nonspendable 103,555 Restricted 22,797,240 Committed 3,958,714 Unassigned(deficit) (286,818) Total fund balances(deficit) 26,572,691 Total liabilities,deferred inflows of resources,and fund balances $ 41,682,082 -180- THIS PAGE IS INTENTIONALLY LEFT BLANK isi CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Street Construction, Cornerstone Maintenance, State Municipal Parking Mills Industrial and Repair Highway Road Deck Park TIF Revenues: Property and otherlocaltaxes $ - $ - $ - $ - $ - Municipal Income taxes - - - - - Charges for services - - - 207,584 - Fines and forfeitures - - - - - Intergovernmental 3,983,122 286,743 - - - Interest and investment income - - - - - Rental income - - - 3,793 - Contributions and donations - - - - - Operating grants - - - - - Capital grants - - 257,782 - - Payment in lieu of taxes - - - - 69,957 Otherlocaltaxes - - - - - Other 11,218 - - - - Total revenues 3,994,340 286,743 257,782 211,377 69,957 Expenditures: Current General government - - - - - Security of persons and property 1,477,718 6,216 - 199,752 - Transportation 2,554,920 267,068 257,782 - - Leisure time activities - - - - - Capital outlay - - - - - Debt service: Principal retirement - - - - - Interest and fiscal charges - - - - - Total expendi[ures 4,032,638 273,284 257,782 199,752 - Excess of revenues over(under)expenditures (38,298) 13,459 - 11,625 69,957 Other financing sources: Lease transactions - - - - - Transfersin - - - - - Total other financing sources - - - - - Net change in fund balance (38,298) 13,459 - 11,625 69,957 Fund balances(deficit) at beginning of year 1,399,693 236,167 896,805 20,605 394,363 Fuud balances(deficit)at end of year $ 1,361,395 $ 249,626 $ 896,805 $ 32,230 $ 464,320 -182- Law Department Gervasi 1700, Urban Lesh Rd/30th Crime Court Dispute SARTA Area LLC TIF TIF St TIF Lab Computer Court Resolution Improvement $ - $ - $ - $ - $ - $ - $ - $ - - - - 24,674 874,688 478,047 - - 48,783 317,936 8,526 - - - - - - - - - - 550 - - 48,783 317,936 8,526 24,674 874,688 478,597 - - - 317,936 - - 143,902 922,289 - - 13,767 - - - - - - - 13,767 317,936 - - 143,902 922,289 - - 35,016 - 8,526 24,674 730,786 (443,692) - - 35,016 - 8,526 24,674 730,786 (443,692) - - 45,209 - 63,860 151,355 207,627 1,540,747 1,054 642 $ 80,225 $ - $ 72,386 $ 176,029 $ 938,413 $ 1,097,055 $ 1,054 $ 642 (Continued) -183- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Enforcement Indigent Driver Park Youth Federal Probation and Alcohol Department Development Forfeiture Award Education Treatment Revenues: Property and otherlocaltaxes $ 3,796,393 $ - $ - $ - $ - $ - Municipal Income taxes - - - - - - Charges for services 1,545 - - - - - Fines and forfeitures - - 105,602 - 3,372 43,819 Intergovernmental 125,158 - - - - - Interest and investment income 706 - 1 - - - Rental income 159,320 - - - - - Contributions and donations 25,851 - - - - - Operating grants - - - - - - Capital grants - - - - - - Payment in lieu of taxes - - - - - - Other local taxes - - - - - - Other 87,629 - 1,244 - - 14,404 Totalrevenues 4,196,602 - 106,847 - 3,372 58,223 Expenditures: Current: General government - - - 442 - - Security of persons and properry - - 13,537 - - - Transportation - - - - - - Leisure time activities 4,291,052 - - - - - Capital outlay - - - - - - Debt service: Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total expenditures 4,291,052 - 13,537 442 - - Excess(deficiency)of revenues over(under)expenditures (94,450) - 93,310 (442) 3,372 58,223 Other flnancing sources: Lease transactions - - - - - - Transfers in - - - - - - Total other financing sources - - - - - - Net change in fund balance (94,450) - 93,310 (442) 3,372 58,223 Fund balances(deficit) at beginning of year 3,671,088 4,470 47,629 13,103 25,983 84,782 Fund balances(deficit)at end of year $ 3,576,638 $ 4,470 $ 140,939 $ 12,661 $ 29,355 $ 143,005 -184- Misdemeanor Law Municipal Community Local Law Enforcement Probation Sanction Prisoner Enforcement Supplementary Trust Services Grant Housing Block Grant Police Forces Police Fire $ - $ - $ - $ - $ - $ - $ - $ - - 190,955 - - - - - - 14,811 - - 14,220 - - - - - - - - - - - 2,600 - - 170,604 - - - 399,480 88,864 - 194 - - 8,O14 - - - 14,811 191,149 170,604 14,220 8,014 - 399,480 91,464 - 138,699 167,611 2,000 - - - - 12,490 - - - - - 559,987 155,620 12,490 138,699 167,611 2,000 - - 559,987 155,620 2,321 52,450 2,993 12,220 8,014 - (160,507) (64,156) - - - - - - - 18,846 - - - - - - - 18,846 2,321 52,450 2,993 12,220 8,014 - (160,507) (45,310) 62,488 371,611 118,359 126,581 (14,517) 108 60,454 (82,475) $ 64,809 $ 424,061 $ 121,352 $ 138,801 $ (6,503) $ 108 $ (100,053) $ (127,785) (Continued) -185- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS(CONTINUED) FOR THE YEAR ENDED DECEMBER 31,2022 Vacant/ Foreclosed Canton HOF Neighborhood Registry Merchandising Jobs Ohio Village Development Revenues: Property and other local taxes $ - $ - $ - $ - $ - Municipal Income taxes - - - - 1,282,261 Charges for services 90,205 - - - - Fines and forfeitures - - - - - Intergovernmental - - - - - Interest and investment income - - - - - Rental income - - - - - Contributions and donations - - - - 50,000 Operating grants - - - - - Capital grants - - - - - Payment in lieu of taxes - - - 1,160,016 - Other Local taxes - - - 573,244 - Other 64,071 1,274 - 112,399 - Total revenues 154,276 1,274 - 1,845,659 1,332,261 Expenditures: Current General government 35,142 10,621 - 54,392 508,757 Security of persons and property 83,703 - - - - Transportation 10,458 - - - 574,500 Leisure time activities - - - 1,938,396 - Capital outlay - - - - - Debt service: Principal retirement - - - - - Interest and fiscal charges - - - - - Total expendi[ures 129,303 10,621 - 1,992,788 1,083,257 Excess(deficiency)of revenues over(under)expenditures 24,973 (9,347) - (147,129) 249,004 Other financing sources: Lease transactions - - - - - Transfers in - - - - - Total other financing sources - - - - - Net change in fund balance 24,973 (9,347) - (147,129) 249,004 Fund balances(deficit) at beginning of year 304,511 24,560 (5,735) 151,485 1,127,674 Fund balances(deficit)at end of year $ 329,484 $ 15,213 $ (5,735) $ 4,356 $ 1,376,678 -186- Total Vacant/ Downtown Comprehensive OneOhio Centennial Nonmajor Pretrial Foreclosure Canton Plan O�ioid Plaza Special Revenue Award Depository Other TDD Implement Settlement TDD Funds $ - $ - $ - $ - $ - $ - $ - $ 3,796,393 - - - - 7,693,566 - - 8,975,827 - 700,000 - - 23 - - 2,567,721 - - - - - 137,274 - 319,098 - - - - 38,073 - - 4,433,096 - - 20,243 - 22,781 - - 43,731 - - 77,514 - - - - 240,627 - - 73,000 - 458,500 - - 609,951 - - 286,408 - - - - 945,356 - - - - - - - 257,782 - - - - - - - 1,605,218 - - - 281,314 - - 17,273 871,831 - 25,000 187,565 - 99,440 - - 613,002 - 725,000 644,730 281,314 8,312,383 137,274 17,273 25,279,633 397 - 540,441 4,521 1,296,444 15,016 64,015 4,222,625 - 372,090 - - - - - 2,881,113 - - 68,530 - 2,797,340 - - 6,530,598 - - - - - - - 6,229,448 - - - - 369,116 - - 369,116 - - - - 1,975 - - 15,742 - - - - 3,025 - - 3,025 397 372,090 608,971 4,521 4,467,900 15,016 64,015 20,251,667 (397) 352,910 35,759 276,793 3,844,483 122,258 (46,742) 5,027,966 - - - - 145,379 - - 145,379 - - - - - - - 18,846 - - - - 145,379 - - 164,225 (397) 352,910 35,759 276,793 3,989,862 122,258 (46,742) 5,192,191 4,848 1,948,845 403,597 84,887 7,888,037 - - 21,380,500 $ 4,451 $ 2,301,755 $ 439,356 $ 361,680 $ 11,877,899 $ 122,258 $ (46,742) $ 26,572,691 -187- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) STREET CONSTRUCTION,MAINTENANCE,AND REPAIR FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Intergovernmental $ 3,960,000 $ 3,970,857 $ 10,857 Other 50,525 41,743 (8,782) Totalrevenues 4,010,525 4,012,600 2,075 Expenditures: Current: Security of Persons and Property: Trafftc Divisions-Tr•af�'tc Administration Personal services 356,785 322,969 33,816 Materials and supplies 23,506 20,446 3,060 Contractual services 21,772 16,172 5,600 Capital outlay 39,850 35,708 4,142 Other 372 371 1 Total Traffic Divisions-Traffic Administration 442,285 395,666 46,619 Traffic Divisions-Traffic Sign and Paint: Personal services 285,245 259,520 25,725 Materials and supplies 108,879 107,358 1,521 Contractual services 71,490 66,841 4,649 Capital outlay 9,458 9,458 - Other 2,189 1,947 242 Total Traffic Divisions-Tra/fic Sign and Paint 477,261 445,124 32,137 Traffic Divisions-Traffic Signal.� Personal services 505,171 420,491 84,680 Materials and supplies 176,098 175,614 484 Contractual services 164,066 160,967 3,099 Capital outlay 93,553 86,905 6,648 Total Traffic Divisions-Traffic Signal 938,888 843,977 94,911 Total Security of Persons and Property 1,858,434 1,684,767 173,667 Transportation: Engineering-Daily Operations: Personal services 25,105 23,593 1,512 Materials and supplies 900 900 - Contractual services 41,680 41,680 - Total Engineering-Daily Operations 67,685 66,173 1,512 Engineering-Administration: Materials and supplies 800,000 800,000 - Capital outlay 995 995 - Total Engineering-Administration 800,995 800,995 - Street Maintenance: Personal services 1,142,151 957,632 184,519 Materials and supplies 653,005 544,964 108,041 Contractual services 133,657 119,220 14,437 Capital outlay 76,200 76,134 66 Other 17,500 16,128 1,372 TotalStreet Maintenance 2,022,513 1,714,078 308,435 TotalTransportation 2,891,193 2,581,246 309,947 Total expenditures 4,749,627 4,266,013 483,614 Net change in fund balance (739,102) (253,413) 485,689 Fund balance at beginning of year 621,003 621,003 - Prior year encumbrances appropriated 229,920 229,920 - Fund balance at end of year $ 111,821 $ 597,510 $ 485,689 -188- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) STATE HIGHWAY FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Intergovernmental S 280,000 $ 285,858 $ 5,858 Other 3,500 2,150 (1,350) Total revenues 283,500 288,008 4,508 Expenditures: Current: Security of Persons and Property: Traffic Divisions-Traffic Signal: Materials and supplies 10,000 - 10,000 Contractual services 10,000 - 10,000 Capital outlay 20,000 10,000 10,000 Total Tra�c Divisions-Traffic Signal 40,000 10,000 30,000 Transportation: Street Maintenance.• Personal services 160,079 134,352 25,727 Materials and supplies 40,576 37,193 3,383 Contractual services 95,250 94,471 779 Capital outlay 1,000 - 1,000 Total Street Maintenance 296,905 266,016 30,889 Total expenditures 336,905 276,016 60,889 Net change in fund balance (53,405) ll,992 65,397 Fund balance at beginning of year 181,736 181,736 - Prior year encumbrances appropriated 10,389 10,389 - Fund balance at end of year $ 138,720 $ 204,ll7 $ 65,397 -189- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MUNICIPAL ROAD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 245,000 $ 887,610 $ 642,610 Other 20,000 - (20,000) Intergovernmental 75,000 - (75,000) Total revenues 340,000 887,610 547,610 Expenditures: Current Transportation: Engineering-Daily Operations: Materials and supplies 152,694 - 152,694 Capital outlay 443,182 443,182 - Other 6,725 6,725 - Total Engineering-Daily Operations 602,601 449,907 152,694 Net change in fund balance (262,601) 437,703 700,304 Fund balance at beginning of year 4,819 4,819 - Prior year encumbrances appropriated 262,158 262,158 - Fund balance at end of year $ 4,376 $ 704,680 $ 700,304 -190- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) CORNERSTONE PARKING DECK FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services S 194,500 $ 207,479 $ 12,979 Rental income 3,000 3,793 793 Total revenues 197,500 2ll,272 13,772 Expenditures: Current: Security of Persons and Property: Police Administration: Personal services 21,300 21,300 - Traffic Division-Tra�c Engineer/Parking Meter: Personal services 198 198 - Materials and supplies 8,141 6,866 1,275 Contractual services 256,758 254,561 2,197 Other 1,977 1,977 - Total Traffic Division-Traffic Engineer/Parking Meter 267,074 263,602 3,472 Total expenditures 288,374 284,902 3,472 Net change in fund balance (90,874) (73,630) 17,244 Fund balance at beginning of year 91,651 91,651 - Prior year encumbrances appropriated 22,123 22,123 - Fund balance at end of year $ 22,900 $ 40,144 $ 17,244 -191 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MILLS INDUSTRIAL PARK TIF FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Payment in lieu of taxes $ 68,000 $ 69,957 $ 1,957 Expenditures: Current: Transportation: Engineering-Daily Operarions: Materials and supplies 325,000 - 325,000 Net change in fund balance (257,000) 69,957 326,957 Fund balance at beginning of year 394,363 394,363 - Fund balance at end of year $ 137,363 $ 464,320 $ 326,957 -192- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GERVASI 1700,LLC TIF FLTND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Payment in lieu of taxes $ 50,000 $ 48,782 $ (1,218) Expenditures: Current Transportation: Engineering-Daily Operations: Materials and supplies 140,866 70,866 70,000 Debt Service: Principal retirement 13,767 13,767 - Total expenditures 154,633 84,633 70,000 Net change in fund balance (104,633) (35,851) 68,782 Fund balance at beginning of year 45,209 45,209 - Prior Year Encumbrances Appropriated 70,866 70,866 - Fund balance at end of year $ 11,442 $ 80,224 $ 68,782 -193- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) URBAN TIF FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Payment in lieu of taxes $ 330,000 $ 317,936 $ (12,064) Expenditures: Current General Government Historac Onesto TIF. Other 70,000 67,432 2,568 Broadview Deve[opment TIF: Other 185,000 178,926 6,074 Innovation District TIP: Other 75,000 71,578 3,422 Total expenditures 330,000 317,936 12,064 Net change in fund balance - - - Fund balance at beginning of year - - - Fund balance at end of year $ - $ - $ - -194- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) LESH RD/30TH ST TIF FLTND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Payment in lieu of taxes $ 6,100 $ 8,527 $ 2,427 Expenditures: Current: Transportation: Engineering-Daily Operations: Materials and supplies 50,000 - 50,000 Net change in fund balance (43,900) 8,527 52,427 Fund balance at beginning of year 63,860 63,860 - Fund balance at end of year $ 19,960 $ 72,387 $ 52,427 -195- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) CRIME LAB FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 25,000 $ 26,614 $ 1,614 Expenditures: Current: Security of Persons and Property Police Administrataon: Capital outlay 78,000 - 78,000 Net change in fund balance (53,000) 26,614 79,614 Fund balance at beginning of year 147,658 147,658 - Fund balance at end of year $ 94,658 $ 174,272 $ 79,614 -196- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COURT COMPUTER FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 216,000 $ 179,689 $ (36,3ll) Other 2,000 - (2,000) Total revenues 218,000 179,689 (38,3ll) Expenditures: Current General Government: Courts/Clerk-Clerk of Courts Administration: Personal services 148,915 1,146 147,769 Materials and supplies 57,102 42,205 14,897 Contractual services 113,000 103,052 9,948 Capital outlay 55,500 4,561 50,939 Other 1,000 - 1,000 Total Courts/Clerk-Clerkof Courts Administration 375,517 150,964 224,553 Net change in fund balance (157,517) 28,725 186,242 Fund balance at beginning of year 184,092 184,092 - Prior year encumbrances appropriated 10,154 10,154 - Fund balance at end of year $ 36,729 $ 222,971 $ 186,242 -197- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COURT CAPITAL IMPROVEMENT SPECIAL PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 450,000 $ 415,666 $ (34,334) Other 2,500 3,558 1,058 Total revenues 452,500 419,224 (33,276) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Personal services 273,810 228,791 45,019 Materials and supplies 34,531 23,629 10,902 Contractual services 195,821 186,783 9,038 Capital outlay 390,932 388,856 2,076 Other 39,468 25,762 13,706 Total Courts/Judge-Judge Administration 934,562 853,821 80,741 Net change in fund balance (482,062) (434,597) 47,465 Fund balance at beginning of year 990,756 990,756 - Prior year encumbrances appropriated 41,909 41,909 - Fund balance at end of year $ 550,603 $ 598,068 $ 47,465 -198- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) LEGAL RESEARCH FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 20,000 $ 15,865 $ (4,135) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Materials and supplies 21,076 3,076 18,000 Contractual services 11,524 4,600 6,924 Capital outlay 8,000 - 8,000 Total Courts/Judge-Judge Administration 40,600 7,676 32,924 Net change in fund balance (20,600) 8,189 28,789 Fund balance at beginning of year 78,577 78,577 - Prior year encumbrances appropriated 4,612 4,612 - Fund balance at end of year $ 62,589 $ 91,378 $ 28,789 -199- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COURT GPS COST FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 1,500 $ 899 $ (601) Expenditures: Current General Government Courts/Judge-Judge Administration: Contractual services 3,800 3,800 - Net change in fund balance (2,300) (2,901) (601) Fund balance at beginning of year 3,988 3,988 - Fund balance at end of year $ 1,688 $ 1,087 $ (601) -200- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) IGNITION INTERLOCK/ALCOHOL MONITORING FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 75,000 $ 49,558 $ (25,442) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Contractual services 97,588 87,588 10,000 Excess of expenditures over revenue (22,588) (38,030) (15,442) Other financing(uses): Transfers out (150,000) (150,000) - Net change in fund balance (172,588) (188,030) (15,442) Fund balance at beginning of year 388,619 388,619 - Prior year encumbrances appropriated 28,281 28,281 - Fund balance at end of year $ 244,312 $ 228,870 $ (15,442) -201 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) LAW DEPARTMENT DISPUTE RESOLUTION FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Other $ 200 $ - $ (200) Expenditures: Current: General Government: Law Director-Administrarion: Contractual services 1,000 - 1,000 Net change in fund balance (800) - 800 Fund balance at beginning of year 1,054 1,054 - Fund balance at end of year $ 254 $ 1,054 $ 800 -202- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) SARTA AREA IMPROVEMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current: Transportation: Engineering-Daily Operations: Contractual services $ 642 $ - $ 642 Net change in fund balance (642) - 642 Fund balance at beginning of year 642 642 - Fund balance at end of year $ - $ 642 $ 642 -203- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) PARK DEPARTMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Properry taxes $ 3,700,000 $ 3,796,393 $ 96,393 Intergovernmental 150,000 125,158 (24,842) Rental income ll0,500 159,876 49,376 Contributions and donations 2,000 25,851 23,851 Other 113,500 129,564 16,064 Total revenues 4,076,000 4,236,842 160,842 Expenditures: Current: Leisure Time Activities: Park Division-Specia[Parks Funds: Personal services 2,593,478 2,408,475 185,003 Materials and supplies 751,516 581,852 169,664 Contractual services 1,480,701 1,014,788 465,913 Capital outlay 2,387,388 1,274,946 1,ll2,442 Other 171,136 134,581 36,555 Total ParkDivision-Special Parks Funds 7,384,219 5,414,642 1,969,577 Excess of expenditures over revenues (3,308,219) (1,177,800) 2,130,419 Other financing sources: Sale of capital assets 4,000 373 (3,627) Net change in fund balance (3,304,219) (1,177,427) 2,126,792 Fund balance at beginning of year 3,276,222 3,276,222 - Prior year encumbrances appropriated 580,878 580,878 - Fund balance at end of year $ 552,881 $ 2,679,673 $ 2,126,792 -204- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) YOUTH DEVELOPMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 4,470 $ 4,470 $ - Fund balance at end of year $ 4,470 $ 4,470 $ - -205- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) FEDERAL FORFEITURE FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Revenues: Fines and forfeitures $ 105,602 $ 105,602 $ - Investment income - 1 1 Other 2,500 1,245 (1,255) Total revenues 108,102 106,848 (1,254) Expenditures: Current: Security of Persons and Property: Police Administration: Personal services 16,000 13,335 2,665 Materials and supplies 39,642 12,495 27,147 Contractual services 5,000 - 5,000 Capital outlay 22,500 - 22,500 Other 5,000 - 5,000 Total Police Administration 88,142 25,830 62,312 Net change in fund balance 19,960 81,018 61,058 Fund balance at beginning of year 47,540 47,540 - Prior year encumbrances appropriated 12,142 12,142 - Fund balance at end of year $ 79,642 $ 140,700 $ 61,058 -206- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) PROBATION AWARD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Contractual services $ 12,995 $ - $ 12,995 Net change in fund balance (12,995) - 12,995 Fund balance at beginning of year 12,995 12,995 - Fund balance at end of year $ - $ 12,995 $ 12,995 -207- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) ENFORCEMENT AND EDUCATION FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Fines and forfeitures $ 5,750 $ 3,389 $ (2,361) Expenditures: Current Security of Persons and Property: Police Administration: Other 17,000 - 17,000 Net change in fund balance (ll,250) 3,389 14,639 Fund balance at beginning of year 25,573 25,573 - Fund balance at end of year $ 14,323 $ 28,962 $ 14,639 -208- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) INDIGENT DRIVER ALCOHOL TREATMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Fines and forfeitures $ 71,272 $ 44,054 $ (27,218) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Personal services 208,011 95,672 ll2,339 Contractual services 113,000 37,500 75,500 Total Courts/Judge-judge administration: 321,011 133,172 187,839 Excess of expenditures over revenues (249,739) (89,ll 8) 160,621 Other financing sources: Transfers in 185,000 150,000 (35,000) Net change in fund balance (64,739) 60,882 125,621 Fund balance at beginning of year 64,739 64,739 - Prior year encumbrances appropriated 18,750 18,750 - Fund balance at end of year $ 18,750 $ 144,371 $ 125,621 -209- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) LAW ENFORCEMENT TRUST FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Fines and forfeitures $ 35,000 $ 48,066 $ 13,066 Expenditures: Current Security of Persons and Property: Police Administration: Materials and supplies 15,500 1,645 13,855 Contractual services 16,000 12,938 3,062 Capital outlay 5,000 4,618 382 Other 5,000 - 5,000 Total Police Administration 41,500 19,201 22,299 Net change in fund balance (6,500) 28,865 35,365 Fund balance at beginning of year 27,143 27,143 - Fund balance at end of year $ 20,643 $ 56,008 $ 35,365 -210- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MUNICIPAL PROBATION SERVICES FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 200,000 $ 195,157 $ (4,843) Other - 194 194 Total revenues 200,000 195,351 (4,649) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Personal services 190,015 103,566 86,449 Materials and supplies 28,031 27,531 500 Contractual services 36,079 8,979 27,100 Other 17,000 15,018 1,982 Total Courts/Judge-Judge Administration 271,125 155,094 ll 6,031 Net change in fund balance (71,125) 40,257 111,382 Fund balance at beginning of year 353,955 353,955 - Prior year encumbrances appropriated 7,264 7,264 - Fund balance at end of year $ 290,094 $ 401,476 $ 111,382 -211 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MISDEMEANOR COMMUNITY SANCTION GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 170,000 $ 170,604 $ 604 Expenditures: Current General Government: Courts/Judge-Judge Administration. Personal services 175,406 162,233 13,173 Materials and supplies 4,500 - 4,500 Contractual services 5,000 4,688 312 Total Courts/Judge-Judge Administration 184,906 166,921 17,985 Net change in fund balance (14,906) 3,683 18,589 Fund balance at beginning of year 78,666 78,666 - Fund balance at end of year $ 63,760 $ 82,349 $ 18,589 -212- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) PRISONER HOUSING FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Fines and forfeitures $ 12,000 $ 13,663 $ 1,663 Expenditures: Current General Government: Courts/Judge-Judge Administration. Contractual services 90,000 12,000 78,000 Net change in fund balance (78,000) 1,663 79,663 Fund balance at beginning of year 106,590 106,590 - Prior year encumbrances appropriated 19,000 19,000 - Fund balance at end of year $ 47,590 $ 127,253 $ 79,663 -213- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) LOCAL LAW ENFORCEMENT BLOCK GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current Security of Persons and Property: Police Administration: Capital outlay $ 43,300 $ 43,300 $ - Other 59,328 51,314 8,014 Total Police Administration 102,628 94,614 8,014 Net change in fund balance (102,628) (94,614) 8,014 Fund balance at beginning of year 102,628 102,628 - Fund balance at end of year $ - $ 8,014 $ 8,014 -214- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) SUPPLEMENTARY POLICE FORCES FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current Security of Persons and Property Police Administrataon: Materials and supplies $ 108 $ - $ 108 Net change in fund balance (108) - 108 Fund balance at beginning of year 108 108 - Fund balance at end of year $ - $ 108 $ 108 -215- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) D.A.R.E. PROGRAM FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current Security of Persons and Property: Police Administration: Materials and supplies $ 151 $ - $ 151 Net change in fund balance (151) - 151 Fund balance at beginning of year 151 151 - Fund balance at end of year $ - $ 151 $ 151 -216- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) PROB IMPROV AND INCENT GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current General Government: Courts/Judge-Judge Administration. Contractual services $ 969 $ - $ 969 Net change in fund balance (969) - 969 Fund balance at beginning of year 969 969 - Fund balance at end of year $ - $ 969 $ 969 -217- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) SAFE NEIGHBORHOOD HEROES GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 131,182 $ - $ (131,182) Expenditures: Current: General operating: Security of persons and property: Fire Administration: Capital outlay 144,300 144,300 - Net change in fund balance (13,118) (144,300) (131,182) Fund balance at beginning of year - - - Prior Year Encumbrances Appropriated 144,300 144,300 - Fund balance at end of year $ 131,182 $ - $ (131,182) -218- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) POLICE GRANTS AND DONATIONS FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current Security of Persons and Property: Police Administration: Materials and supplies � 3,050 $ - $ 3,050 Contractual services 500 - 500 Capital outlay 4,500 - 4,500 Total Police Administration 8,050 - 8,050 Net change in fund balance (8,050) - 8,050 Fund balance at beginning of year 9,138 9,138 - Fund balance at end of year $ 1,088 $ 9,138 $ 8,050 -219- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) BYRNE MEMORIAL RECOVERY ACT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Other 6nancing sources(uses): Advances out S (4,029) $ - S (4,029) Net change in fund balance (4,029) - (4,029) Fund balance at beginning of year 4,029 4,029 - Fund balance at end of year $ - $ 4,029 $ 4,029 -220- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) USE OF FORCE SOFTWARE UPGRADE GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 55,490 $ - $ (55,490) Expenditures: Current: Security of Persons and Property: Police Administration: Other 55,490 - 55,490 Net change in fund balance - - - Fund balance at beginning of year - - - Fund balance at end of year $ - $ - $ - -221 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) POLICE EMS TRAINING AND EQUIPMENT GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year S 1,500 $ 1,500 $ - Fund balance at end of year $ 1,500 $ 1,500 $ - -222- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2020 COPS HIRING GRANT FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Revenues: Operating grants $ 450,000 $ 236,091 $ (213,909) Expenditures: Current: Security of persons and property: Police Administration: Other 450,000 214,467 235,533 Net change in fundbalance - 21,624 21,624 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 21,624 $ 21,624 223 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2021 BULLETPROOF VEST PARTNERSHIP FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Revenues: Operating grants $ - $ 2,371 $ 2,371 Expenditures: Current: Security of persons and property: Police Administration: Materials and supplies 34,880 4,743 30,137 Net change in fundbalance (34,880) (2,372) 32,508 Fund balance at beginning of year 34,880 34,880 - Fund balance at end of year $ - $ 32,508 $ 32,508 224 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2014 BYRNE GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 1,250,000 $ - $ (1,250,000) Expenditures: Current: Security of Persons and Property: Police Administration: Other 200,000 - 200,000 Net change in fund balance 1,050,000 - (1,050,000) Fund balance at beginning of year - - - Fund balance at end of year $ 1,050,000 $ - $ (1,050,000) -225- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2021 COPS HIRING GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 200,000 $ 117,ll6 $ (82,884) Expenditures: Current: Security of Persons and Property: Police Administration: Other 200,000 82,281 ll7,719 Net change in fund balance - 34,835 34,835 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 34,835 $ 34,835 -226- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) FIRE GRANTS AND DONATIONS FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Donations $ - $ 2,599 $ 2,599 Expenditures: Current: Security of persons and property: Fire Administration: Materials and supplies 202 - 202 Net change in fund balance (202) 2,599 2,801 Fund balance at beginning of year 362 362 - Fund balance at end of year $ 160 $ 2,961 $ 2,801 -227- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2021 DEPARTMENT HS ASST TO FIREFIGHTER FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current Security of Persons and Property: Fire Administration: Materials and supplies $ 170,000 $ 155,620 $ 14,380 Capital outlay 37,309 37,308 1 Total Fire Administration 207,309 192,928 14,381 Excess of expenditures over revenues (207,309) (192,928) 14,381 Other financing sources: Transfers in 18,846 18,846 - Advances in 188,463 188,463 - Total other financing sources 207,309 207,309 - Net change in fund balance - 14,381 14,381 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 14,381 $ 14,381 -228- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) EMS TRAINING AND EQUIPMENT GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 6,027 $ 6,027 $ - Fund balance at end of year $ 6,027 $ 6,027 $ - -229- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) FIRE FEMA SAFER GRANT 2017 FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Operating grants $ 15,000 $ - $ (15,000) Expenditures: Current Security of Persons and Property: Fire Administration: Other 15,000 - 15,000 Net change in fund balance - - - Fund balance at beginning of year - - - Fund balance at end of year $ - $ - $ - -230- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2019 ASST TO FIREFIGHTERS GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 88,864 $ 88,864 $ - Excess of revenues over expenditures 88,864 88,864 - Other financing sources(uses): Advances out (88,864) (88,864) - Net change in fund balance - - - Fund balance at beginning of year - - - Fund balance at end of year $ - $ - $ - -231 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) VACANT/FORECLOSED REGISTRY FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Revenues: Charges for services $ 40,000 $ 90,205 $ 50,205 Other - 750 750 Total revenues 40,000 90,955 50,955 Expenditures: Current General Government: Courts/Judge-Judge Administration. Personal services 40,510 35,842 4,668 Security of Persons and Property Safety Director-Code EnforcementAdministration: Materials and supplies 33,084 25,631 7,453 Contractual services 152,052 70,852 81,200 Capital outlay 1,500 - 1,500 Other 3,950 185 3,765 Total Safety Director -Code Enforcement Administration 190,586 96,668 93,918 Street-Maintenance: Contractual services 77,500 20,000 57,500 Total expenditures 308,596 152,510 156,086 Net change in fund balance (268,596) (61,555) 207,041 Fund balance at beginning of year 297,720 297,720 - Prior year encumbrances appropriated 8,539 8,539 - Fund balance at end of year S 37,663 $ 244,704 $ 207,041 -232- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) CANTON MERCHANDISING FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Other $ - $ 1,274 $ 1,274 Expenditures: Current General Government: Council Administration: Materials and supplies 2,000 - 2,000 Contractual services 551 51 500 Total Council Administration 2,551 51 2,500 Net change in fund balance (2,551) 1,223 3,774 Fund balance at beginning of year 13,915 13,915 - Prior year encumbrances appropriated 75 75 - Fund balance at end of year $ 11,439 $ 15,213 $ 3,774 -233- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) HALL OF FAME VILLAGE TOURISM DEVELOPMENT DISTRICT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Negative) Revenues: Payment in lieu of taxes $ 1,250,000 $ 1,160,016 $ (89,984) Other local taxes 613,443 583,456 (29,987) Other 203,557 112,399 (91,158) Total Revenues 2,067,000 1,855,871 (211,129) Expenditures: Current: Leisure Time Activities: Hall of Fame Village-Tourism Development District: Other 1,914,314 1,825,997 88,317 PACE Financing: Other 250,000 112,399 137,601 Total expenditures 2,164,314 1,938,396 225,918 Net change in fund balance (97,314) (82,525) 14,789 Fund balance at beginning of year 98,313 98,313 - Fund balance at end of year $ 999 $ 15,788 $ 14,789 -234- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES 1N FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) NEIGHBORHOOD DEVELOPMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Municipal income taxes $ 1,212,000 $ 1,312,425 $ 100,425 Donations and contributions 50,000 50,000 - Total revenues 1,262,000 1,362,425 100,425 Expenditures: Current: General Government: General Government-SupportAdministration: Contractual services 534,417 314,417 220,000 Capital outlay 559,753 546,748 13,005 Total General Government-SupportAdministration 1,094,170 861,165 233,005 Transportation: Engineering-Daily Operations: Materials and supplies 500,000 500,000 - Capital outlay 325,000 74,500 250,500 Total Engineering-Daily Operations 825,000 574,500 250,500 Total expenditures 1,919,170 1,435,665 483,505 Net change in fund balance (657,170) (73,240) 583,930 Fund balance at beginning of year 672,890 672,890 - Prior year encumbrances appropriated 365,915 365,915 - Fund balance at end of year $ 381,635 $ 965,565 $ 583,930 -235- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) PRETRIAL AWARD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Expenditures: Current: General government Courts/judge-judge administration Contract services $ 4,451 $ - $ 4,451 Net change in fund balance (4,451) - 4,451 Fund balance at beginning of year 4,451 4,451 - Fund balance at end of year $ - $ 4,451 $ 4,451 -236- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) BUILDING ESCROW FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Other $ 200,000 $ 240,158 $ 40,158 Expenditures: Current: General Government: Safety Director-Code Enforcement Administration Other 200,000 193,062 6,938 Net change in fundbalance - 47,096 47,096 Fund balance at beginning of year 141,352 141,352 - Fund balance at end of year $ 141,352 $ 188,448 $ 47,096 -237- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) VACANT/FORECLOSURE DEPOSITORY FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 500,000 $ 700,000 $ 200,000 Other - 25,000 25,000 Total Revenues 500,000 725,000 225,000 Expenditures: Current: General Government: Safety Director-Code Enforcement Administration Other 1,800,000 372,090 1,427,910 Net change in fund balance (1,300,000) 352,910 1,652,910 Fund balance at beginning of year 1,948,845 1,948,845 - Fund balance at end of year $ 648,845 $ 2,301,755 $ 1,652,910 -238- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) EMPLOYEE RECOGNITION FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current General Government Mayor Administration: Contractual services $ 143 $ - $ 143 Net change in fund balance (143) - 143 Fund balance at beginning of year 143 143 - Fund balance at end of year $ - $ 143 $ 143 -239- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) CITY HALL PLAZA FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 173 $ 173 $ - Fund balance at end of year $ 173 $ 173 $ - -240- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) RECYCLE OHIO GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 7,516 $ 7,516 $ - Fund balance at end of year $ 7,516 $ 7,516 $ - -241 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GUARDRAIUATTENUATOR REPLACEMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Other $ 80,000 $ 133,193 $ 53,193 Expenditures: Current General Government Law Director-Law Administration: Capital outlay 10,000 - 10,000 Other 15,000 7,288 7,712 Total Law Director-Law Administration 25,000 7,288 17,712 Transportation: Street Maintenance. Contractual services 500 - 500 Capital outlay 87,020 83,675 3,345 Other 5,000 - 5,000 Total StreetMaintenance 92,520 83,675 8,845 Total expenditures 117,520 90,963 26,557 Net change in fund balance (37,520) 42,230 79,750 Fund balance at beginning of year 124,988 124,988 - Prior year encumbrances appropriated 13,125 13,125 - Fund balance at end of year $ 100,593 $ 180,343 $ 79,750 -242- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) SOUTHEAST COMMUNITY CENTER FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 862 $ 862 $ - Fund balance at end of year $ 862 $ 862 $ - -243- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) CENTENNIAL PLAZA MAINTENANCE FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Contributions and donations $ 83,533 $ 73,000 $ (10,533) Rental income 74,642 82,727 8,085 Other - 32,500 32,500 Total revenues 158,175 188,227 30,052 Expenditures: Current: General Government General government-support admznistration: Contractual services 280,515 270,515 10,000 Net change in fund balance (122,340) (82,288) 40,052 Fund balance at beginning of year 102,825 102,825 - Prior Year Encumbrances Appropriated 20,515 20,515 - Fund balance at end of year $ 1,000 $ 41,052 $ 40,052 -244- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) THURMAN MUNSON MEMORIAL STADNM DONATION FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 1,566 $ 1,566 $ - Fund balance at end of year $ 1,566 $ 1,566 $ - -245- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) RECOVERY COURT ATP FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Revenues: Operating grants $ 5,000 $ 8,796 $ (3,796) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Personal services 6,095 59 6,036 Contractual services 1,875 - 1,875 Total Courts/Judge-Judge Administration 7,970 59 7,9ll Net change in fundbalance (2,970) 8,737 4,115 Fund balance at beginning of year 7,390 7,390 - Fund balance at end of year $ 4,420 $ 16,127 $ 4,115 -246- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) US DEPT JUSTICE/BUREAU ASST FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Other 6nancing(uses): Advances out $ (58,756) $ - $ 58,756 Net change in fund balance (58,756) - 58,756 Fund balance at beginning of year 58,756 58,756 - Fund balance at end of year $ - $ 58,756 S 58,756 -247- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) PROJECT SAFE NEIGHBORHOOD GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Other financing sources(uses): Advances out $ (16,800) $ - $ 16,800 Net change in fund balance (16,800) - 16,800 Fund balance at beginning of year 16,800 16,800 - Fund balance at end of year $ - $ 16,800 $ 16,800 -248- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) JUSTICE REINVEST GRANT PROBATION FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 228,250 $ 187,612 $ (40,638) Expenditures: Current: General Government: Courts/Judge-Judge Administration: Personal services 243,902 193,010 50,892 Contractual services 2,530 - 2,530 Total Courts/judge-judge adminstration 246,432 193,010 53,422 Net change in fund balance (18,182) (5,398) 12,784 Fund balance at beginning of year 18,192 18,192 - Fund balance at end of year $ 10 $ 12,794 $ 12,784 -249- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COURT TECHNOLOGY GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 37,308 $ - $ (37,308) Expenditures: Current General Government: Courts/Judge-Judge Administration. Contractual services 37,308 - 37,308 Net change in fund balance - - - Fund balance at beginning of year - - - Fund balance at end of year $ - $ - $ - -250- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) SPECIALIZED DOCKET GRANT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Operating grants $ 240,000 $ 90,000 $ (150,000) Expenditures: Current General Government: Courts/Judge-Judge Adminastration. Personal services 273,460 94,848 178,612 Net change in fund balance (33,460) (4,848) 28,612 Fund balance at beginning of year 69,980 69,980 - Fund balance at end of year $ 36,520 $ 65,132 $ 28,612 -251 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) OCJS 2020 PROJECT SAFE NEIGHBORHOOD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Operating grants $ - $ 22,800 $ 22,800 Excess of revenues over expenditures - 22,800 22,800 Other financing sources(uses): Advancesin 22,800 - (22,800) Advancesout (22,800) - 22,800 Total other financing sources(uses) - - - Net change in fund balance - 22,800 22,800 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 22,800 $ 22,800 252 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) OCJS 2021 PROJECT SAFE NEIGHBORHOOD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Expenditures: Current Security of persons and property: Police Administration: Personal services $ 18,000 $ - $ 18,000 Excess of expenditures over revenues (18,000) - 18,000 Other financing sources: Advances in 18,000 18,000 - Net change in fund balance - 18,000 18,000 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 18,000 $ 18,000 253 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES 1N FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) DOWNTOWN CANTON TDD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Revenues: Other local taxes $ 81,000 $ 211,219 $ 130,219 Net change in fund balance 81,000 211,219 130,219 Fund balance at beginning of year 84,887 84,887 - Fund balance at end of year $ 165,887 $ 296,106 $ 130,219 254 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COMPREHENSIVE PLAN IMPLEMENTATION FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Municipal income taxes $ 8,670,000 $ 7,874,548 $ (795,452) Charges for services - 23 23 Other 72,000 184,979 ll 2,979 Contributions and donations 457,500 458,500 1,000 Total revenues 9,199,500 8,518,050 (681,450) Expenditures: Current: General Govemment General Government-Support Administration: Materials and supplies 59,781 58,943 838 Contractual services 709,517 336,119 373,398 Capital outlay 242,479 242,479 - Other 6,082,107 5,954,173 127,934 Total General Government-SupportAdministration 7,093,884 6,591,714 502,170 Mayor-Administration: Contractual services 200,000 200,000 - Planning and Zoning. Personal services 166,020 164,275 1,745 Contractual services 2,000 - 2,000 Other 1,000 - 1,000 Total Planning and Zoning 169,020 164,275 4,745 Tusc St W Corr Safety Project• Contractual services 1,500,000 1,435,171 64,829 Transportation: Engineering-Daily Operations: Materials and supplies 1,533,766 1,533,765 1 Contractual services 545,286 536,271 9,015 Capital outlay 3,075,362 3,075,361 1 Total Transportation 5,154,414 5,145,397 9,017 Total expenditures 14,117,318 13,536,557 58Q761 Excess of expenditures over revenues (4,917,818) (5,018,507) (100,689) Other financing sources(uses): Advances in - 1,500,000 1,500,000 Advances(out) (750,000) (500,000) 250,000 Total other financing sources(uses) (750,000) 1,000,000 1,750,000 Net change in fund balance (5,667,818) (4,018,507) 1,649,311 Fund balance at beginning of year 2,737,059 2,737,059 - Prior year encumbrances appropriated 3,010,839 3,010,839 - Fund balance at end of year $ 80,080 $ 1,729,391 $ 1,649,311 -255- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) ARPA 2022 WELLNESS&RECRUIT FD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Expenditures: Current Security of persons and property: Police Administration: Personal services $ 124,400 $ - $ 124,400 Excess of expenditures over revenues (124,400) - 124,400 Other financing sources: Advances in 124,400 124,400 - Net change in fund balance - 124,400 124,400 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 124,400 $ 124,400 256 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) ONE OHIO OPIOID FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Fines and forfeitures $ 25,000 $ 42,401 $ 17,401 Expenditures: Current: General Government: General government-support administration: Materials and supplies 17,500 15,016 2,484 Contractual services 7,500 - 7,500 Total General government-support administration 25,000 15,016 9,984 Net change in fundbalance - 27,385 27,385 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 27,385 $ 27,385 257 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) CENTENNIAL PLAZA TDD FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Other local taxes $ 17,151 $ 17,213 $ 62 Expenditures: Current: Tourism Development District TDD Capital outlay 64,015 64,015 - Excess of expenditures over revenues (46,864) (46,802) 62 Other financing sources: Advancesin 47,868 47,868 - Net change in fund balance 1,004 1,066 62 Fund balance at beginning of year - - - Fund balance at end of year $ 1,004 $ 1,066 $ 62 258 CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) INCOME TAX FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Municipal income taxes $ 9,234,379 $ 9,063,161 $ (171,218) Other 51,600 27,421 (24,179) Total revenues 9,285,979 9,090,582 (195,397) Expenditures: Current General Government Law Administration: Personal services 194,929 151,969 42,960 Income Tax Administration: Personal services 1,341,ll0 1,308,342 32,768 Materials and supplies 156,048 150,984 5,064 Contractual services 234,286 212,996 21,290 Capital outlay 30,750 3,690 27,060 Other 7,423,715 7,360,625 63,090 TotallncomeTaxAdministration 9,185,909 9,036,637 149,272 Debt Service: Principal retirement 6,883 6,883 - Total expenditures 9,387,721 9,195,489 192,232 Net change in fund balance (101,742) (104,907) (3,165) Fund balance at beginning of year - - - Prior year encumbrances appropriated 104,907 104,907 - Fund balance at end of year $ 3,165 $ - $ (3,165) -259- CITY OF CANTON STARK COUNTY,OHIO COMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS DECEMBER 31,2022 General Special Total Nonmajor Obligation Bond Assessment Bond Debt Service Retirement Retirement Funds Assets: Equiry in pooled cash and cash equivalents $ 109,459 $ - $ 109,459 Cash with fiscal agent 3,019 - 3,019 Receivables: Accounts - 6,697 6,697 Total assets $ 112,478 $ 6,697 $ 119,175 Deferred inflows of resources: Charges for services revenue not available $ - $ 6,697 $ 6,697 Fund balances: Restricted ll2,478 - ll2,478 Total deferred inflows of resources and fund balances $ 112,478 $ 6,697 $ 119,175 -260- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 General Total Obligation Bond Non Major Retirement Debt Service Revenues: Interest and inveshnent income $ 4,817 $ 4,817 Total revenues 4,817 4,817 Net change in fund balances 4,817 4,817 Fund balances at beginning of year 107,661 107,661 Fund balances at end of year $ 112,478 $ 112,478 -261 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) GENERAL OBLIGATION BOND RETIREMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Interest and inveshnent income $ 16,000 $ 4,817 $ (11,183) Expenditures: Current: Debt Service: Interest and fiscal charges 50,000 - 50,000 Net change in fund balance (34,000) 4,817 38,817 Fund balance at beginning of year 104,642 104,642 - Fund balance at end of year $ 70,642 $ 109,459 $ 38,817 -262- THIS PAGE IS INTENTIONALLY LEFT BLANK. -263 - CITY OF CANTON STARK COUNTY,OHIO COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECTS FUNDS DECEMBER 31,2022 2015 2006 2006 Construction City 2006 Construction/ Reconstruction Infrastructure Recreational Reconstruction Note Bond Bond Bond Assets: Equiry in pooled cash and cash equivalents $ 50,279 $ 162,525 $ 450,759 $ 10,691 Receivables: Accounts - 143,216 - - Accrued interest - - 51 - Due from other governments - 46,805 - - Total assets $ 50,279 $ 352,546 $ 450,810 $ 10,691 Liabilities: Accounts payable $ - $ 742 $ - $ - Fund balances: Resh-icted 50,279 351,804 450,810 10,691 Unassigned(deficit) - - - - Total fund balances(deficit) 50,279 351,804 450,810 10,691 Total liabilities,deferred inflows of resources,and fund balances $ 50,279 $ 352,546 $ 450,810 $ 10,691 -264- 2006 Judges Totals Facilities/ 2022 llth Street 49th St NW 3rd Street 36th St NW Nonmajor City Hall Infrastructure Improvement Stm Sewer SE Bridge Storm Roadway Capital Projects Renovation Bond Bond Project Rehab Project Project Water&Sewer Funds $ 1,744 $ 3,859,754 $ - $ - $ - $ - $ 4,535,752 - - - - - - 143,216 - 13,938 - - - - 13,989 - - 30,482 - - - 77,287 $ 1,744 $ 3,873,692 $ 30,482 $ - $ - $ - $ 4,770,244 $ - $ 552,740 $ 30,482 $ 290,460 $ 3,055 $ 1,127,905 $ 2,005,384 1,744 3,320,952 - - - - 4,186,280 - - - (290,460) (3,055) (1,127,905) (1,421,420) 1,744 3,320,952 - (290,460) (3,055) (1,127,905) 2,764,860 $ 1,744 $ 3,873,692 $ 30,482 $ - $ - $ - $ 4,770,244 -265- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 2015 2006 2006 Construction City 2006 Construction/ Reconstruction Infrastructure Recreational Reconstruction Note Bond Bond Bond � Revenues: Interest and investment income $ - $ - $ 229 $ - Capital grants - 176,805 - - Other - 143,216 - - Total revenues - 320,021 229 - Expenditures: Capital outlay - 523,597 - - Debt service: Principal retirement 6,500,000 - - - Interest and fiscal charges 55,542 - - - Bond issuance costs 21,860 - - - Total expenditures 6,577,402 523,597 - - Excess of revenues over(under)expenditures (6,577,402) (203,576) 229 - Other financing sources: Bond issuance 3,221,860 Note issuance 3,200,000 - - - Transfers in 205,000 - - - Total other financing sources 6,626,860 - - - Net change in fund balances 49,458 (203,576) 229 - Fund balances(deficit)at beginning of year 821 555,380 450,581 10,691 Fund balances(deficit)at end of year $ 50,279 $ 351,804 $ 450,810 $ 10,691 -266- 2006 Judges Tuscarawas Facilities/ 41st St NW 2022 llth St NW Street West 49th St NW City Hall Roadway Infrastructure Improvement Corridor Storm Sewer Renovation Bond Reconstruction Bond Project Safety Project Rehab Project $ - $ - $ 35,572 $ - $ - $ - - 23,557 - 107,760 481 1,057,710 - 23,557 35,572 107,760 481 1,057,710 - 23,557 714,620 30,482 - 1,069,746 - - 27,326 - - - - 23,557 741,946 30,482 - 1,069,746 - - ��o6,s�4� ��,2�s 4si �12,036� - - 4,027,326 - - - - - 4,027,326 - - - - - 3,320,952 77,278 481 (12,036) 1,744 - - (77,278) (481) (278,424) $ 1,744 $ - $ 3,320,952 $ - $ - $ (290,460) (Continued) -267- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECTS FUNDS(CONTINUED) FOR THE YEAR ENDING DECEMBER 31,2022 Total 3rd Street SE 36th St NW Nonmajor Bridge Storm Roadway Capital Projects Project Water&Sewer Funds Revenues: Interest and investment income $ - $ - $ 35,801 Capital grants 67,062 65,071 1,498,446 Other - - 143,216 Total revenues 67,062 65,071 1,677,463 Expenditures: Capital outlay 70,117 1,192,976 3,625,095 Debt service: Principal retirement - - 6,500,000 Interest and fiscal charges - - 55,542 Bond issuance costs - - 49,186 Total expenditures 70,117 1,192,976 10,229,823 Excess of revenues over(under)expenditures (3,055) (1,127,905) (8,552,360) Other financing sources: Bond issuance - - 7,249,186 Note issuance - - 3,200,000 Transfers in - - 205,000 Total other financing sources - - 10,654,186 Net change in fund balances (3,055) (1,127,905) 2,101,826 Fund balances(deficit)at beginning of year - - 663,034 Fund balances(deficit)at end of year $ (3,055) $ (1,127,905) $ 2,764,860 -268- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2015 CONSTRUCTION/RECONSTRUCTION NOTE FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Expenditures: Current: Debt Service: Principle Retirement: Various purpose loans $ 6,600,000 $ 6,500,000 $ 100,000 Interest and Fiscal Charges: Various purpose loans/bonds 83,850 55,542 28,308 Bond issue costs: Various purpose bonds 21,860 21,860 - Total Debt Service 6,705,710 6,577,402 128,308 Excess of expenditures over revenues (6,705,710) (6,577,402) 128,308 Other financing sources: Transfers in 205,000 205,000 - Bond issuance 3,221,860 3,221,860 - Note issuance 3,300,000 3,200,000 (100,000) Total other financing sources 6,726,860 6,626,860 (100,000) Net change in fund balance 21,150 49,458 28,308 Fund balance at beginning of year 821 821 - Fund balance at end of year $ 21,971 $ 50,279 $ 28,308 -269- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2006 CITY INFRASTRUCTURE BOND FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 200,000 $ 130,000 $ (70,000) Expenditures: Capital Outlay: Service Director: Engineering Administration 681,723 605,871 75,852 Net change in fund balance (481,723) (475,871) 5,852 Fund balance at beginning of year 133,043 133,043 - Prior year encumbrances appropriated 422,337 422,337 - Fund balance at end of year $ 73,657 $ 79,509 $ 5,852 -270- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2006 RECREATIONAL BOND FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Interest and inveshnent income $ - $ 179 $ 179 Net change in fund balance - 179 179 Fund balance at beginning of year 450,579 450,579 - Fund balance at end of year $ 450,579 $ 450,758 $ 179 -271- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2006 CONSTRUCTION/RECONSTRUCTION BOND FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 10,691 $ 10,691 $ - Fund balance at end of year $ 10,691 $ 10,691 $ - -272- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2006 NDGES FACILITIES/CITY HALL RENOVATION BOND FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Fund balance at beginning of year $ 1,743 $ 1,743 $ - Fund balance at end of year $ 1,743 $ 1,743 $ - -273- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 41 ST ST NW ROADWAY RECONSTRUCTION PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 65,430 $ 23,557 $ (41,873) Expenditures: Capital Outlay: Service Director.• Engineering-41th St NW Roadway Reconstruction Project 23,557 23,557 - Net change in fund balance 41,873 - (41,873) Fund balance(deficit)at beginning of year (32,715) (32,715) - Prior year encumbrances appropriated 32,715 32,715 - Fund balance(deficit)at end of year $ 41,873 $ - $ (41,873) -274- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 2022 INFRASTRUCTURE BOND FLTND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ - $ 21,634 $ 21,634 Expenditures: Engineer: Salt Storage Facility Project 1,500,000 1,500,000 - Service Center Upgrade and Reconstruction Project 2,471,800 144,225 2,327,575 Debt Service: Bond issue costs: Various purpose bonds 28,200 27,326 874 Excess of expenditures over revenues (4,000,000) (1,649,917) 2,350,083 Other financing sources: Bond issuance 4,000,000 4,027,326 (27,326) Net change in fund balance - 2,377,409 2,322,757 Fund balance at beginning of year - - - Fund balance at end of year $ - $ 2,377,409 $ 2,322,757 -275- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 11TH ST NW IMPROVEMENT PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 240,000 $ 77,278 $ (162,722) Expenditures: Capital Outlay: Service Director.• Engineering-l lth St NW Improvement Project 107,760 107,760 - Net change in fund balance 132,240 (30,482) (162,722) Fund balance(deficit)at beginning of year (107,760) (107,760) - Prior year encumbrances appropriated 107,760 107,760 - Fund balance(deficit)at end of year $ 132,240 $ (30,482) $ (162,722) -276- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) TUSCARAWAS STREET WEST CORRIDOR SAFETY PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 1,338 $ 481 $ (857) Expenditures: Capital Outlay: Service Director.• Engineering-Tusc St W Corr Safety Project 92562 1,338 1,338 - Net change in fund balance - (857) (857) Fund balance(deficit)at beginning of year (1,338) (1,338) - Prior year encumbrances appropriated 1,338 1,338 - Fund balance(deficit)at end of year $ - $ (857) $ (857) -277- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) 3RD STREET SE BRIDGE PROJECT GP 1167 FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Expenditures: Capital Outlay: Water: 37th Street Water Sewer Str Improvement Project $ (181,556) $ (181,556) $ - Total expenditures (181,556) (181,556) - Excess of revenues over expenditures 181,556 181,556 - Other financing sources: Issuance of loans (255,000) (181,556) 73,444 Net change in fund balance (73,444) - 73,444 Fund balance at beginning of year - - - Fund balance(deficit)at end of year $ (73,444) $ - $ 73,444 -278- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 36TH ST NW STORM RDWY WTR&SWR FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 1,363,488 $ 65,071 $ (1,298,417) Expenditures: Capital Outlay: Service Director: Engineering-36th St W Str,Rdwy,Wtr&Swr 1,363,488 1,363,487 1 Net change in fund balance - (1,298,416) (1,298,416) Fund balance(deficit)at beginning of year (1,363,488) (1,363,488) - Prior year encumbrances appropriated 1,363,488 1,363,488 - Fund balance(deficit)at end of year $ - $ (1,298,416) $ (1,298,416) -279- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES 1N FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 3RD ST SE RESURFACING PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Negative) Revenues: Capital grants $ 73,525 $ 67,062 $ (6,463) Expenditures: Capital Outlay: Service Director: Engineering-3rd St SE Bridge Rehab Project 73,525 73,525 - Net change in fund balance - (6,463) (6,463) Fund balance at beginning of year (73,525) (73,525) - Prior year encumbrances appropriated 73,525 73,525 - Fund balance(deficit)at end of year $ - $ (6,463) $ (6,463) -280- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 13TH ST NW ROADWAY RECONSTRUCTION FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 3,140 $ 3,140 $ - Expenditures: Capital Outlay: Service Director.• Engineering-13th St NW Rdwy Recon Project 3,140 3,140 - Net change in fund balance - - - Fund balance(deficit)at beginning of year (3,140) (3,140) - Prior year encumbrances appropriated 3,140 3,140 - Fund balance(deficit)at end of year $ - $ - $ - -281 - CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MAHONING RD CORRIDOR PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 37,212 $ - $ (37,212) Net change in fund balance 37,212 - (37,212) Fund balance(deficit)at beginning of year (18,606) (18,606) - Prior year encumbrances appropriated 18,606 18,606 - Fund balance(deficit)at end of year $ 37,212 $ - $ (37,212) -282- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) 30TH STREET NW RESURFACING PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Capital grants $ 381,478 $ - $ (381,478) Expenditures: Capital Outlay: Service Director: Engineering-30th St NW Resurf Proj GP 1238 381,478 384,478 (3,000) Net change in fund balance - (384,478) (384,478) Fund balance at beginning of year - - - Fund balance at end of year $ - $ (384,478) $ (384,478) -283- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) STEESE AREA 39TH ST NW SEWER PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Ne�ative) Revenues: Capital grants $ 1,500,000 $ 1,109,393 $ (390,607) Expenditures: Capital Outlay: Service Director.• Engineering-Steese Area 39th St NW Sewer Project 1,500,000 1,500,000 - Net change in fund balance - (390,607) (390,607) Fund balance at beginning of year (1,500,000) (1,500,000) - Prior year encumbrances appropriated 1,500,000 1,500,000 - Fund balance(deficit)at end of year $ - $ (390,607) $ (390,607) -284- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BAS1S) COLONIAL BLVD RECONSTRUCTION PROJECT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Budget Actual (Negative) Revenues: Capital grants $ 2,490,165 $ - $ (2,490,165) Expenditures: Capital Outlay: Engineer.• Colonial Blvd Reconstruction project 2,490,165 2,490,165 - Net change in fundbalance - (2,490,165) (2,490,165) Fund balance at beginning of year - - - Fund balance(deficit)at end ofyear $ - $ (2,490,165) $ (2,490,165) -285- CITY OF CANTON STARK COUNTY,OHIO Fund Description-Major Enterprise Funds Enterprise funds may be used to account for any activity for which a fee is charged to external users for goods or services. The Ciry operates three Major enterprise funds: Water Operating Fund The water operating enterprise fund accounts for the provision of water treatment and distribution to its residential and commercial users located within the City and surrounding communities. Sewer Operating Fund The sewer operating enterprise fund accounts for the provision of sanitary sewer service to the residents and commercial users located within the City and several surrounding communities. Refuse Operating Fund The refuse operating enterprise fund accounts for the provision of trash collection to the residents and commercial users located in the City. -286- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) WATER OPERATING FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 20,669,000 $ 21,278,037 $ 609,037 Rental income 26,000 32,046 6,046 Other 2,049 327,308 325,259 Total revenues 20,697,049 21,637,391 940,342 Expenses: Personal services 8,515,215 7,594,213 921,002 Materials and supplies 3,925,803 3,561,154 364,649 Contractual services 12,479,360 10,937,330 1,542,030 Capital outlay 59,896,494 53,520,800 6,375,694 Claims 435,725 276,549 159,176 Other 104,544 62,051 42,493 Debt service: Principal retirement 3,075,722 2,475,920 599,802 Interest and fiscal charges 602,074 545,706 56,368 Total expenses 89,034,937 78,973,723 10,061,214 Excess of expenses over revenues (68,337,888) (57,336,332) ll,001,556 Nonoperating revenues(expenses): Sale of notes 26,025 - (26,025) Sale of assets 5,000 39,375 34,375 Transfer in 293,000 234,872 (58,128) Transfer(out) (287,749) (277,572) 10,177 Loan proceeds 48,597,256 2,297,260 (46,299,996) Capital contributions 10,283,624 5,015,881 (5,267,743) Total nonoperating revenues(expenses) 58,917,156 7,309,816 (51,607,340) Net change in fund balance (9,420,732) (50,026,516) (40,605,784) Fund balance at beginning of year 13,082,060 13,082,060 - Prior year encumbrances appropriated 7,761,709 7,761,709 - Fund balance at end of year $ ll,423,037 $ (29,182,747) $(40,605,784) -287- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) SEWER OPERATING FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (NeQative) Revenues: Charges for services $ 24,572,522 $ 24,271,230 $ (301,292) Intergovernmental 2,850,000 - (2,850,000) Rental income 10,000 23,356 13,356 Other 237,000 136,202 (100,798) Total revenues 27,669,522 24,430,788 (3,238,734) Expenses: Personal services 7,876,343 6,732,141 1,144,202 Materials and supplies 2,494,912 2,023,835 471,077 Contractual services 16,571,150 10,210,705 6,360,445 Capital outlay 20,671,586 11,887,061 8,784,525 Claims 684,859 6,431 678,428 Other 318,7ll 124,341 194,370 Debt service: Principal retirement 3,605,191 3,604,986 205 Interest and fiscal charges 2,041,944 2,041,741 203 Total expenses 54,264,696 36,631,241 17,633,455 Excess of expenses over revenues (26,595,174) (12,200,453) 14,394,721 Nonoperating revenues(ex�enses): Transfer in 1,500,000 1,520,000 20,000 Transfer(out) (1,553,300) (1,553,300) - Issuanceofloans 9,587,146 9,365 (9,577,781) Total nonoperating revenues(expenses) 9,533,846 (23,935) (9,557,781) Net change in fund balance (17,061,328) (12,224,388) 4,836,940 Fund balance(deficit)at beginning of year 14,159,993 14,159,993 - Prior year encumbrances appropriated 6,965,416 6,965,416 - Fund balance at end of year $ 4,064,081 $ 8,901,021 $ 4,836,940 -288- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) REFUSE OPERATING FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 8,010,000 $ 8,504,270 $ 494,270 Operating grants 50,000 40,755 (9,245) Other 10,000 78,067 68,067 Total revenues 8,070,000 8,623,092 553,092 Expenses: Personal services 4,844,560 4,303,856 540,704 Materials and supplies 455,188 446,428 8,760 Contractual services 3,551,403 3,504,691 46,712 Capital outlay 10,739,062 1,470,437 9,268,625 Claims 9,665 3,932 5,733 Other 32,137 27,387 4,750 Debt service: Principal retirement 140,000 140,000 - Interest and fiscal charges 195,874 195,363 511 Bond issue costs 68,314 68,314 - Total expenses 20,036,203 10,160,408 9,875,795 Excess of expenses over revenues (11,966,203) (1,537,316) 10,428,887 Nonoperating revenues(expenses): Bond issuance 10,000,000 10,068,314 68,314 Interestrevenue - 52,857 52,857 Sale of assets - 37,500 37,500 Transfer(out) (50,000) (50,000) - Total nonoperating revenues(expenses) 9,950,000 10,108,671 158,671 Net change in fund balance (2,016,203) 8,571,355 10,587,558 Fund balance at beginning of year 1,666,748 1,666,748 - Prior year encumbrances appropriated 611,516 611,516 - Fund balance at end of year $ 262,061 $ 10,849,619 $ 10,587,558 -289- CITY OF CANTON STARK COUNTY,OHIO Fund Descriptions-Non Major Enterprise Fund Enterprise funds may be used to account for any activiry for which a fee is charged to external users for goods or services. The City operates one Nonmajor Enterprise Fund: Building Code Fund The building code enterprise fund accounts for the provision of license and permit fees collection related to the enforcement of the city building code. The budgetary statement is only shown,since the building code fund is the City's only nonmajor enterprise fund. -290- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) BUILDING CODE FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 2,475,500 $ 2,409,595 $ (65,905) Other 36,000 48,799 12,799 lntergovernmental - 4,994 4,994 Total revenues 2,511,500 2,463,388 (48,112) Expenses: Personal services 1,829,991 1,469,918 360,073 Materials and supplies 60,877 57,933 2,944 Contractual services 1,902,289 1,786,715 115,574 Capital outlay 44,923 44,910 13 Claims 161,500 150,668 10,832 Other 6,890 4,650 2,240 Debt service: Principal retirement 5,500 5,040 460 Interest and fiscal charges 1,000 960 40 Total expenses 4,012,970 3,520,794 492,176 Net change in fund balance (1,501,470) (1,057,406) 444,064 Fund balance at beginning of ycar 1,866,144 1,866,144 - Prior year encumbrances appropriated 425,082 425,082 - Fund balance at end of year $ 789,756 $ 1,233,820 $ 444,064 -291 - CITY OF CANTON STARK COUNTY,OHIO Fund Description-Internal Service Funds Internal Service Funds are established to account for the financing of services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. Workers'Compensation Retrospective Fund To account for the charges to the operating funds on a percentage of payroll basis and the payment of premiums and claims under the retrospective rating plan as provided by the Ohio Bureau of Workers'Compensation. Health Insurance Fund To account far charges to the operating funds on a per employee basis for the health and hospitalization self insurance, eye and dental insurance and for payments to AFSCME for the unions' administered employees' eye and dental premiums. This fund also pays the salaries and fringe benefits of the employees responsible for administering and processing claims. Compensated Absences Claim Fund To account for charges to the operating funds on a per employee basis for the claims associated with and mandated by local and state fringe benefit provisions including accumulated sick time,continuing disability,banked vacation,and termination pay. Vehicle Self Insurance Fund To account for charges to the operating funds on a per fund basis far the claims associated with a vehicle self insurance fund. This fund is included in the general fund (GAAP basis), but has a separate legally adopted budget(budget basis). This fund is not included in the combining statements far the internal service funds since it is reported in the general fund (GAAP basis); however,the budgetary schedule for this fund is presented in this section. Motor Vehicles Department Fund To account for charges to the operating funds on a per fund basis for the department of motor vehicles. This fund is included in the general fund (GAAP basis), but has a separate legally adopted budget (budget basis). This fund is not included in the combining statements for the internal service funds since it is reported in the general fund (GAAP basis); however, the budgetary schedule for this fund is presented in this section. -292- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS DECEMBER 31,2022 Total Workers' Compensated Nonmajor Compensation Health Absences Internal Retrospective Insurance Claim Service Assets: Current assets: Equiry in pooled cash and cash equivalents $ 2,621,986 $ 1,603,135 $ 339,299 $ 4,564,420 Receivables: Accounts - 1,185,855 166,594 1,352,449 Prepayments 1,337 1,756 74,520 77,613 Due from other funds - - 108,282 108,282 Due from other governments 22,131 6,630 - 28,761 Due from component unit 84,292 36,347 - 120,639 Total assets $ 2,729,746 $ 2,833,723 $ 688,695 $ 6,252,164 Liabilities: Current liabilities: Accounts payable $ 2,335 $ 2,498,406 $ - $ 2,500,741 Payroll withholding payable 1,030 2,339 48,021 51,390 Accrued wages and benefits payable - 5,068 77,782 82,850 Due to other governments 361 783 12,017 13,161 Compensated absences payable - - 1,824,805 1,824,805 Claims payable 504,969 719,737 - 1,224,706 Total current liabiliries 508,695 3,226,333 1,962,625 5,697,653 Non-current liabilities: Compensated absences payable - - 6,137,110 6,137,110 Claims payable 1,164,171 - - 1,164,171 Total non-current liabilities 1,164,171 - 6,137,110 7,301,281 Totalliabilities 1,672,866 3,226,333 8,099,735 12,998,934 Net position: Unrestricted(deficit) $ 1,056,880 $ (392,610) $ (7,411,040) $ (6,746,770) -293- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Total Workers' Compensated Nonmajor Compensation Health Absences Internal Retrospective Insurance Claim Service Operating revenues: Charges for services $ 1,106,545 $ 12,377,274 $ 4,180,974 $ 17,664,793 Other 334,419 3,748,395 28,868 4,ll1,682 Total operating revenues 1,440,964 16,125,669 4,209,842 21,776,475 Operating expenses: Personal services 77,988 2,253,892 2,331,880 Contract services 107,506 1,142,239 9,380 1,259,125 Benefit claims and expenses - - 4,136,366 4,136,366 Insurance claims and expenses 1,319,507 16,595,616 - 17,915,123 Other 3,000 - - 3,000 Total operating eapenses 1,508,001 19,991,747 4,145,746 25,645,494 Operating income(loss) (67,037) (3,866,078) 64,096 (3,869,019) Transfer in - 425,000 - 425,000 Change in net position (67,037) (3,441,078) 64,096 (3,444,019) Net position(deficit)at beginning of year 1,123,917 3,048,468 (7,475,136) (3,302,751) Net position(deficit)at end of year $ 1,056,880 $ (392,610) $ (7,411,040) $ (6,746,770) -294- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Total Workers' Compensated Nonmajor Compensation Health Absences Internal Retrospective Insurance Claim Service Cash flows from operating activities: Cash received from charges for services $ 1,106,545 $ 12,377,274 $ 4,180,974 $ 17,664,793 Cash received from other operations 333,492 2,830,251 - 3,163,743 Cash payments for personal services (87,280) (192,009) (1,525) (280,814) Cash payments for contractual services (107,506) (1,142,239) (9,380) (1,259,125) Cash payments for insurance claims (1,317,838) (16,436,848) - (17,754,686) Cash payments for benefits claims - - (4,503,998) (4,503,998) Cash payments for other expenses (3,000) - - (3,000) Net cash(used in)operaring activities (75,587) (2,563,571) (333,929) (2,973,087) Cash flows from noncapital financial activities: Cash received from transfers in - 425,000 - 425,000 Net(decrease)in cash and cash equivalents (75,587) (2,138,571) (333,929) (2,548,087) Cash and cash equivalents at beginning of year 2,697,573 3,741,706 673,228 7,ll2,507 Cash and cash equivalents at end of year $ 2,621,986 $ 1,603,135 $ 339,299 $ 4,564,420 Reconciliation of operating income(loss)to net cash(used in)operating activities: Operating income(loss) $ (67,037) $ (3,866,078) $ 64,096 $ (3,869,019) Changes in assets and liabilities: (Increase)in accounts receivable - (918,144) (25,803) (943,947) (Increase)in due from other govemments (927) - - (927) Decrease in due from other funds - - 19,837 19,837 (Increase)decrease in due from component unit 1,669 (7,862) - (6,193) (Increase)decrease in prepayments 78 (333) (3,065) (3,320) Increase(decrease)in accounts payable (6,168) 2,062,953 (460) 2,056,325 (Decrease)in accrued wages and benefits (2,778) (364) (48,834) (51,976) (Decrease)in due to other governments (68) (56) (7,545) (7,669) (Decrease)in payroll withholding payable (356) (317) (1,525) (2,198) (Decrease)in compensated absences payable - - (330,630) (330,630) Increase in claims payable - 166,630 - 166,630 Net cash(used in)operating activities $ (75,587) $ (2,563,571) $ (333,929) $ (2,973,087) -295- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) WORKERS'COMPENSATION RETROSPECTIVE FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 1,500,000 $ 1,106,545 $ (393,455) Other 250,000 335,472 85,472 Total revenues 1,750,000 1,442,017 (307,983) Expenses: Personal services 115,620 86,924 28,696 Materials and supplies 2,850 - 2,850 Contractual services 217,670 151,660 66,010 Insurance claims and expenses 1,502,000 1,317,838 184,162 Other 4,200 3,000 1,200 Total expenses 1,842,340 1,559,422 282,918 Net change in fund balance (92,340) (ll7,405) (25,065) Fund balance at beginning of year 2,671,017 2,671,017 - Prior year encumbrances appropriated 25,170 25,170 - Fund balance at end of year $ 2,603,847 $ 2,578,782 $ (25,065) -296- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) HEALTH INSURANCE FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (NeQative) Revenues: Charges for services $ ll,000,000 $ 10,864,044 $ (135,956) Other 4,717,834 4,346,961 (370,873) Total revenues 15,717,834 15,2ll,005 (506,829) Expenses: Personal services 219,290 191,692 27,598 Materials and supplies 500 - 500 Contractual services 1,168,746 1,168,746 - Insurance claims and expenses 16,700,729 16,700,259 470 Other 1,500 100 1,400 Total expenses 18,090,765 18,060,797 29,968 Excess of expenses over revenues (2,372,931) (2,849,792) (476,861) Other financing sources: Transfers in - 425,000 425,000 Net change in fund balance (2,372,931) (2,424,792) (51,861) Fund balance at beginning of year 2,009,964 2,009,964 - Prior year encumbrances appropriated 1,729,086 1,729,086 - Fund balance at end of year $ 1,366,ll9 $ 1,314,258 $ (51,861) -297- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) COMPENSATED ABSENCES CLAIM FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 4,018,000 $ 4,180,974 $ 162,974 Other 307,000 - (307,000) Total revenues 4,325,000 4,180,974 (144,026) Expenses: Personal services 4,923,500 4,503,998 419,502 Contractual services 20,000 9,380 10,620 Total expenses 4,943,500 4,513,378 430,122 Net change in fund balance (618,500) (332,404) 286,096 Fund balance at beginning of year 623,682 623,682 - Fund balance at end of year $ 5,182 $ 291,278 $ 286,096 -298- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) VEHICLE SELF INSURANCE FLTND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Interest $ - $ 90 $ 90 Other 25,000 27,448 2,448 Total revenues 25,000 27,538 2,538 Expenses: Personal services 35,410 33,131 2,279 Contractual services 97,800 90,421 7,379 Insurance claim expenses 524,592 486,478 38,114 Total expenses 657,802 610,030 47,772 Excess of expenses over revenues (632,802) (582,492) 50,310 Nonoperating revenue: Transfers in 280,000 276,000 (4,000) Net change in fund balance (352,802) (306,492) 46,310 Fund balance at beginning of year 402,392 402,392 - Prior year encumbrances appropriated 108,841 108,841 - Fund balance at end of year $ 158,431 $ 204,741 $ 46,310 -299- CITY OF CANTON STARK COUNTY,OHIO SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(NON-GAAP BUDGETARY BASIS) MOTOR VEHICLES DEPARTMENT FUND FOR THE YEAR ENDED DECEMBER 31,2022 Variance with Final Budget Final Positive Bud�et Actual (Ne�ative) Revenues: Charges for services $ 3,300,000 $ 3,244,020 $ (55,980) Other 125,000 104,905 (20,095) Total revenues 3,425,000 3,348,925 (76,075) Expenses: Personal services 1,562,615 1,501,273 61,342 Materials and supplies 1,524,799 1,508,772 16,027 Contractual services 779,047 747,734 31,313 Capital outlay 15,415 15,415 - Insurance claim expenses 100 - 100 Other 21,299 20,799 500 Total expenses 3,903,275 3,793,993 109,282 Net change in fund balance (478,275) (445,068) 33,207 Fund balance at beginning of year 300,231 300,231 - Prior year encumbrances appropriated 419,641 419,641 - Fund balance at end of year $ 241,597 $ 274,804 $ 33,207 -300- CITY OF CANTON STARK COUNTY,OHIO Fund Descriptions-Fiduciary Funds Fiduciary funds are used to account for assets held by the Ciry in a trustee capacity, or as an agent for individuals,private organizations,other governmental units,and/or funds. The following are the City's fiduciary fund rypes: Custodial Funds Custodial funds do not recognize revenues or expenditures, only changes in assets and liabilities. These funds are used to record the collection and payment of refundable deposits,taxes collected for other governments,and municipal court. Downtown Special Irrzprovement District Fund: To keep track of property taxes collect by the Ciry for a Special Improvement District. Once the Ciry receives the money it is immediately reimbursed to the board of the district. Building Department State Assessrraent Fund: To account for assessments that are collected by the Ciry on building projects on behalf of the state. Jackson-Canton JEDD Fund: To account for the receipt and disbursement of JEDD income taxes. Municipal Court Fund: To account for municipal court activities,including the civil division and trusteeship accounts not currently reflected on the Ciry's records. -301 - CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS DECEMBER 31,2022 Dowtown Special Building Jackson-Canton Muncipal Improvement Department State JEDD Court District Fund Assessement Fund Fund Fund Assets: Equity in pooled cash and cash equivalents $ - $ 795 $ 46,984 $ - Cash in segregated accounts - - - 117,732 Receivables(net of allowances for uncollectibles): Accounts 7,312 - - - Total assets $ 7,312 $ 795 $ 46,984 $ 117,732 Liabilities: Due to other governments $ - $ - $ - $ 117,732 Totalliabilities - - - 117,732 Net position: Restricted for individuals,organizations and other governments 7,312 795 46,984 - Total net position $ 7,312 $ 795 $ 46,984 $ - -302- Total $ 47,779 117,732 7,312 $ 172,823 $ 117,732 117,732 55,091 $ 55,091 -303- CITY OF CANTON STARK COUNTY,OHIO COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS FOR THE YEAR ENDED DECEMBER 31,2022 Dowtown Special Building Jackson-Canton Muncipal Improvement Department State JEDD Court District Fund Assessement Fund Fund Fund Additions: Fines and forfeitures for other governments $ - $ 17,995 $ - $ 1,061,897 Property tax collection for other governments 193,013 - 1,244,546 - Total additions 193,013 17,995 1,244,546 1,061,897 Deductions: Fines and forfeitures distributions to other governments - 18,478 - 1,061,897 Property tax distributions to other governments 193,841 - 1,252,905 - Total deductions 193,841 18,478 1,252,905 1,061,897 Net change in fiduciary net position (828) (483) (8,359) - Net position beginning of year(restated) 8,140 1,278 55,343 - Net position end of year $ 7,312 $ 795 $ 46,984 $ - -304- Total $ 1,079,892 1,437,559 2,517,451 1,080,375 1,446,746 2,527,121 (9,670) 64,761 $ 55,091 -305- TffiS PAGE IS INTENTIONALLY LEFT BLANK. -306- ��,. � �t `' � ,,�,�, �� r N .l , r 4 1 . � '�.- �. � -i .t,,.y _ . �'.� 't ��' � �Y� y �J'4�.Y L.�� q. *`-,,'Y�''��� ��� � � � I � 1 T� - a� •�� »��� ��'���•'� ��. � f:� � } � II �•� r� ���� �� �� �� ' �� •f r� � •�4�� . 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' �r 1 i .J k .+ h #�"� ..k1 '� + `� tv! ,i ! `, �. r 'K # � ti . . �, � � ,�• - ';„,,.;... �" � � .�i�. _ . . _ _ , � _ .. . :, ,, o . + - — , ' . � � � CITY OF CANTON STARK COUNTY,OHIO STATISTICAL SECTION This part of the Ciry of Canton, Ohio's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Ciry's overall financial health. Contents Page Financial Trends Sl-S10 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Sll-S12 These schedules contain information to help the reader assess the Ciry's most significant local revenue sources, municipal income taxes. Debt Capacity S13-S23 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. Demographic and Economic Information S24-S25 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information S27-S32 These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the seroices the Ciry provides and the activities it performs. Sources:Unless otherwise noted,the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year. -S- CITY OF CANTON STARK COUNTY,OHIO NET POSITION BY COMPONENT LAST TEN YEARS (ACCRUAL BASIS OF ACCOUNTING) 2022 2021 2020 2019 Governmental Activities Net investment in capital assets $ 178,451,100 $ 167,834,977 $ 161,172,446 $ 148,563,517 Restricted 34,498,690 28,252,221 22,180,996 26,137,839 Unrestricted (52,069,315) (53,780,403) (72,489,858) (76,901,325) Total Governmental Activities Net Position $ 160,880,475 $ 142,306,795 $ 110,863,584 $ 97,800,031 Business-Type Activities Net investment in capital assets $ 141,966,953 $ 129,989,301 $ 121,744,301 $ 109,824,923 Unrestricted 43,721,692 35,503,382 23,103,692 20,788,924 Total Business-Type Activities Net Position $ 185,688,645 $ 165,492,683 $ 144,847,993 $ 130,613,847 Primary Government Net investment in capital assets $ 320,418,053 $ 297,824,278 $ 282,916,747 $ 258,388,440 Restricted 34,498,690 28,252,221 22,180,996 26,137,839 Unrestricted (8,347,623) (18,277,021) (49,386,166) (56,ll2,401) Total Primary Government Net Position $ 346,569,120 $ 307,799,478 $ 255,711,577 $ 228,413,878 Note:The City has implemented GASB Statements No.75 in fiscal year 2018 and restated fiscal year 2017. -51 - 2018 2017 2016 2015 2014 2013 $ 134,323,608 $ 127,232,203 $ 120,105,838 $ 114,318,575 $ 106,702,688 $ 99,188,330 19,608,510 20,359,389 17,870,574 21,643,804 19,038,897 20,669,995 (118,676,629) (ll9,444,515) (63,674,938) (62,270,207) 10,069,695 8,055,536 $ 35,255,489 $ 28,147,077 $ 74,301,474 $ 73,692,172 $ 135,8ll,280 $ 127,913,861 $ 93,402,528 $ 80,091,786 $ 81,244,719 $ 75,533,187 $ 70,635,102 $ 70,583,131 27,255,096 34,552,456 37,500,121 33,635,250 42,265,775 40,577,502 $ 120,657,624 $ 114,644,242 $ 118,744,840 $ 109,168,437 $ 112,900,877 $ 1ll,160,633 $ 227,726,136 $ 207,323,989 $ 201,350,557 $ 189,851,762 $ 177,337,790 $ 169,771,461 19,608,510 20,359,389 17,870,574 21,643,804 19,038,897 20,669,995 (91,421,533) (84,892,059) (26,174,817) (28,634,957) 52,335,470 48,633,038 $ 155,913,ll3 $ 142,791,319 $ 193,046,314 $ 182,860,609 $ 248,712,157 $ 239,074,494 -52- CITY OF CANTON STARK COUNTY,OffiO CHANGES IN NET POSITION LAST TEN YEARS (ACCRUAL BASIS OF ACCOUNTING) 2022 2021 2020 2019 Expenses Governmental activities: Generalgovernment $ 40,714,866 $ 22,317,191 $ 37,839,708 $ 28,025,343 Security of persons andproperty 44,618,910 41,486,099 46,358,477 8,837,144 Public health - - - 1,232,398 Transportation 13,551,460 11,401,192 14,268,076 12,622,505 Community environment 9,865,516 6,954,076 6,898,548 5,321,317 Leisure time activities 9,510,403 6,468,004 6,886,494 6,667,334 Economic development - - - - lnterest and fiscal charges 170,842 353,183 403,843 458,779 Total governmental activitiesexpenses 118,431,997 88,979,745 112,655,146 63,164,820 Business-type activities: Water 16,894,983 12,911,295 13,087,071 17,040,979 Sewer 16,000,819 14,385,898 17,151,513 15,504,917 Refuse 6,679,839 6,197,967 7,250,380 7,391,458 Building 2,872,417 1,358,349 2,556,414 2,560,417 Total business-type activities expenses 42,448,058 34,853,509 40,045,378 42,497,771 Total Primary Government Expenses $ 160,880,055 $ 123,833,254 $ 152,700,524 $ 105,662,591 Program Revenues Governmental activities: Charges far services: EMS charges $ 2,718,013 $ 2,629,583 $ 2,631,301 $ 2,465,507 Leisure time activiries 405,658 226,264 173,710 183,892 Licenses,permits,and fees 830,279 1,093,708 719,466 779,435 Municipal court revenue 2,736,548 3,033,295 2,648,132 3,580,152 Other activities 7,473,964 6,903,017 8,510,162 7,274,893 Operating grants and contributions 25,982,859 14,568,356 25,512,200 14,009,562 Capital grants and contributions 2,000,615 2,698,851 3,851,157 9,479,469 Total governmental activities program revenues 42,147,936 31,153,074 44,046,128 37,772,910 Business-type activities: Charges far services: Water 21,619,262 21,088,086 20,404,573 19,654,394 Sewer 24,757,953 17,157,453 17,782,401 17,461,965 Refuse 8,489,066 8,242,411 7,605,258 7,399,720 Building 2,394,724 2,763,981 2,296,302 2,328,174 Operating grants and conh-ibutions 38,957 44,338 62,891 25,514 Capital grants and contributions 4,950,585 6,016,766 5,337,330 4,987,298 Total business-rype activities program r-evenues 62,250,547 55,313,035 53,488,755 51,857,065 Total Primary Government Program Revenues $ 104,398,483 $ 86,466,109 $ 97,534,883 $ 89,629,975 -53- 2018 2017 2016 2015 2014 2013 $ 23,835,090 $ 20,575,714 $ 21,401,267 $ 20,813,879 $ 19,609,570 $ 16,648,538 51,177,610 42,659,988 45,317,984 42,879,044 38,759,803 37,209,092 9,104,599 7,188,358 6,627,161 6,186,052 6,196,761 5,948,698 13,157,017 10,885,075 14,177,868 14,538,968 12,065,377 13,253,789 6,073,153 8,408,420 6,829,268 12,051,165 8,106,584 6,012,767 5,396,449 5,003,179 3,703,459 3,417,987 3,549,040 3,329,290 - - - 263,186 - - 832,149 412,469 361,969 386,900 442,388 542,745 109,576,067 95,133,203 98,418,976 100,537,181 88,729,523 82,944,919 18,111,531 17,763,510 14,639,812 14,174,629 15,3 87,377 13,029,402 17,822,870 17,427,064 12,423,601 14,155,798 12,796,231 12,516,730 6,739,833 6,717,023 6,892,183 6,354,269 6,257,256 5,924,125 2,222,500 1,903,631 1,768,265 - - - 44,896,734 43,811,228 35,723,861 34,684,696 34,440,864 31,470,257 $ 154,472,801 $ 138,944,431 $ 134,142,837 $ 135,221,877 $ 123,170,387 $ 114,415,176 $ 2,271,759 $ 1,879,750 $ 1,721,128 $ 954,809 $ 2,963,877 $ 1,790,137 183,261 196,873 46,712 45,781 30,379 29,550 824,804 706,182 1,083,886 1,499,109 1,512,407 1,510,822 3,652,096 3,527,414 3,397,151 2,765,518 2,867,661 3,401,332 7,505,583 7,762,803 4,821,212 8,727,538 7,497,735 6,496,325 19,621,140 16,479,341 16,591,905 9,787,441 12,203,279 9,361,804 8,231,824 6,972,483 11,438,948 13,910,356 5,755,827 3,956,443 42,290,467 37,524,846 39,100,942 37,690,552 32,831,165 26,546,413 19,153,280 18,460,579 17,025,059 17,576,612 15,545,481 14,919,158 15,955,328 15,804,202 14,340,312 14,925,552 13,407,709 13,914,466 5,817,983 5,787,333 5,849,351 5,762,077 5,962,885 5,801,598 2,413,530 1,893,728 2,011,319 - - - 75,606 78,591 47,971 121,130 69,919 67,026 6,881,345 2,562,096 4,854,422 9,770 600,402 1,943,958 50,297,072 44,586,529 44,128,434 38,395,141 35,586,396 36,646,206 $ 92,587,539 $ 82,111,375 $ 83,229,376 $ 76,085,693 $ 68,417,561 $ 63,192,619 -54- CITY OF CANTON STARK COUNTY,OffiO CHANGES IN NET POSITION(CONTINUED) LAST TEN YEARS (ACCRUAL BASIS OF ACCOUNTING) 2022 2021 2020 2019 Net(Expenses)/Revenues Governmental Activities $ (76,284,061) $ (57,826,671) $ (68,609,018) $ (25,391,910) Business-Type Activities 19,802,489 20,459,526 13,443,377 9,359,294 Total Primary Government Net Expense $ (56,481,572) $ (37,367,145) $ (55,165,641) $ (16,032,616) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Municipal income taxes $ 73,493,705 $ 68,558,692 $ 58,926,120 $ 63,689,354 Property and other taxes 6,541,558 5,837,538 6,080,705 5,435,783 Grants and entitlements not restricted to specific programs 7,708,553 7,817,314 8,058,438 7,090,245 Payment in lieu of taxes 1,605,218 1,567,937 1,061,906 1,050,880 Other local taxes 980,ll2 547,978 164,500 534,451 lnterest and investment earnings (2,818,193) (325,680) 1,193,887 1,720,593 Other 7,346,788 5,266,103 6,187,015 4,020,169 Proceeds on sale of capital assets - - - - Transfers - - - - Total governmental activities 94,857,741 89,269,882 81,672,571 83,541,475 Business-type activities: lnterest and investment earnings 95,758 - - - Other 297,715 173,554 768,403 549,431 Gain on sale of capital assets - 11,610 22,366 47,498 Transfers - - - - Total business-rype activities 393,473 185,164 790,769 596,929 Total Primary Government $ 95,251,214 $ 89,455,046 $ 82,463,340 $ 84,138,404 Special Item Governmental activities: Transfer of operations to Board of Health $ - $ - $ - $ 2,292,578 Change in Net Position Governmental activities $ 18,573,680 $ 31,443,2ll $ 13,063,553 $ 60,442,143 Business-type activities 20,195,962 20,644,690 14,234,146 9,956,223 Total Primary Government $ 38,769,642 $ 52,087,901 $ 27,297,699 $ 70,398,366 -SS- 2018 2017 2016 2015 2014 2013 $ (67,285,600) $ (57,608,357) $ (59,318,034) $ (62,846,629) $ (55,898,358) $ (56,398,506) 5,400,338 775,301 8,404,573 3,710,445 1,145,532 5,175,949 $ (61,885,262) $ (56,833,056) $ (50,913,461) $ (59,136,184) $ (54,752,826) $ (51,222,557) $ 53,456,724 $ 50,015,065 $ 44,357,696 $ 45,014,757 $ 50,699,714 $ 45,912,805 5,503,406 5,158,048 4,746,457 4,463,752 4,916,636 2,473,315 7,116,496 7,470,873 6,728,791 6,815,424 5,040,384 5,356,271 144,666 101,910 120,375 43,687 25,948 35,312 661,955 89,096 - - - - 663,771 490,540 425,963 433,892 206,592 58,749 6,846,994 4,549,880 4,057,189 - 2,906,503 1,964,459 - - - 4,060,560 - - - - (509,135) - - - 74,394,012 67,875,412 59,927,336 60,832,072 63,795,777 55,800,9ll - - - - - 1 582,975 3,635,391 652,386 877,805 558,770 50,847 30,069 15,353 10,309 (10,410) 35,942 - - - 509,135 - - - 613,044 3,650,744 1,171,830 867,395 594,712 50,848 $ 75,007,056 $ 71,526,156 $ 61,099,166 $ 61,699,467 $ 64,390,489 $ 55,851,759 $ - $ - $ - $ - $ - $ - $ 7,108,412 $ 10,267,055 $ 609,302 $ (2,014,557) $ 7,897,419 $ (597,595) 6,013,382 4,426,045 9,576,403 4,577,840 1,740,244 5,226,797 $ 13,121,794 $ 14,693,100 $ 10,185,705 $ 2,563,283 $ 9,637,663 $ 4,629,202 -56- CITY OF CANTON STARK COUNTY,OffiO FUND BALANCES,GOVERNMENTAL FUNDS LAST TEN YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2022 2021 2020 2019 General Fund Nonspendable $ 5,503,210 $ 5,454,906 $ 2,440,352 $ 510,065 Committed 921,504 1,124,147 794,194 741,790 Assigned 4,697,869 6,943,283 5,938,370 1,524,342 Unassigned 5,905,801 7,168,559 9,364,146 10,801,876 Total General Fund $ 17,028,384 $ 20,690,895 $ 18,537,062 $ 13,578,073 All Other Governmental Funds Nonspendable $ 135,839 $ 138,594 $ 160,951 $ 46,195 Restricted 30,428,643 21,074,330 14,988,302 19,099,477 Committed 13,531,008 13,009,480 10,385,373 8,341,151 Unassigned(deficit) (1,708,238) (458,910) (440,286) (435,325) Total All Other Governmental Funds $ 42,387,252 $ 33,763,494 $ 25,094,340 $ 27,051,498 -57- 2018 2017 2016 2015 2014 2013 $ 464,494 $ 459,000 $ 471,541 $ 409,573 $ 400,706 $ 382,303 1,051,732 1,166,310 1,091,198 836,374 772,068 950,255 1,637,333 1,227,262 - - 3,471,995 550,226 3,173,724 - (3,376,238) (4,470,003) 1,435,402 6,502,030 $ 6,327,283 $ 2,852,572 $ (1,813,499) $ (3,224,056) $ 6,080,171 $ 8,384,814 $ 37,174 $ 38,603 $ 36,881 $ 102,984 $ 130,508 $ 41,347 16,698,662 13,268,417 13,633,249 12,525,422 10,153,844 12,031,197 8,055,997 7,485,097 6,374,838 4,479,326 4,044,125 3,395,680 (821,758) (1,749,678) (1,917,973) (938,552) (97,954) (193,ll2) $ 23,970,075 $ 19,042,439 $ 18,126,995 $ 16,169,180 $ 14,230,523 $ 15,275,112 -58- CITY OF CANTON STARK COUNTY,OHIO CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS LAST TEN YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2022 2021 2020 2019 Revenues: Properry and other taxes $ 6,469,543 $ 5,975,465 $ 5,999,717 $ 5,632,268 Municipalincometaxes 73,101,195 68,914,401 59,595,993 62,602,915 Charges for services 12,459,237 12,816,065 13,006,250 12,826,300 Licenses,permits,and fees 737,869 880,440 823,752 880,594 Fines and forfeitures 433,050 295,276 269,024 461,489 Intergovernmental 25,300,657 14,158,831 21,040,432 11,226,345 Interest (1,734,504) (272,186) 1,229,348 1,741,967 Rental income 244,567 216,562 76,942 85,667 Contributions and donations 613,591 911,805 660,020 611,324 Operating grants 5,187,944 7,151,891 6,657,321 7,514,991 Capital grants 1,762,668 2,653,597 3,366,919 8,039,240 Payment in lieu of taxes 1,605,218 1,567,937 1,061,906 1,050,880 Other 6,207,688 4,722,788 4,338,222 3,124,164 Total revenues 132,388,723 119,992,872 ll8,125,846 115,798,144 Expenditures: General government 42,202,104 30,515,205 39,892,229 23,541,894 Securityofpersonsandproperty 42,617,401 41,876,163 39,134,353 41,788,214 Public health - - - 1,133,420 Transportation 9,022,213 6,617,322 7,524,053 5,202,623 Community environment 10,003,008 7,515,181 6,671,288 5,055,249 Leisure time activities 9,161,466 6,552,256 5,704,698 5,342,993 Capital outlay 16,283,146 14,286,893 15,951,093 23,674,315 Economic development - - - - Debt service Principal 8,893,466 6,206,754 5,999,712 6,076,322 Interest and fiscal charges 265,051 353,373 415,897 465,901 Bond issuance costs 49,186 - - - Total expenditures 138,497,041 113,923,147 121,293,323 112,280,931 Excess(deficiency)of revenues over (under)expenditures (6,108,318) 6,069,725 (3,167,477) 3,517,213 Other financing sources(uses): . Sale of assets - - 37,132 44,735 Bond issuance 7,249,186 - - - Issuance of notes/loans/leases 4,245,379 4,753,262 6,632,176 7,854,000 Transfers in 223,846 192,998 782,338 12,639 Transfers out (648,846) (192,998) (1,282,338) (12,639) Total other financing sources(uses) 11,069,565 4,753,262 6,169,308 7,898,735 Special item: Transfer of operations to Board of Health - - - (3,186,134) Net change in fund balances $ 4,961,247 $ 10,822,987 $ 3,001,831 $ 8,229,814 Debt service as a percentage of noncapital expenditures 7.78% 6.63% 6.55% 7.50% -59- 2018 2017 2016 2015 2014 2013 $ 5,269,540 $ 5,209,704 $ 4,481,612 $ 4,316,978 $ 4,192,204 $ 2,574,747 53,880,960 49,666,607 45,247,080 46,693,386 48,536,712 45,921,847 11,989,243 11,980,318 11,607,591 11,038,335 11,414,960 10,974,528 1,245,021 1,164,527 945,545 1,499,109 1,530,879 1,510,822 789,067 603,176 569,407 463,574 427,981 1,110,272 10,730,164 ll,059,243 10,338,129 10,575,834 8,827,418 8,321,048 696,345 511,078 413,629 426,685 206,936 58,749 82,107 96,253 73,504 69,812 54,916 51,364 199,163 35,736 267,628 29,356 2,984 50,525 15,254,021 13,051,518 12,285,017 8,855,961 9,381,059 8,849,719 9,561,286 6,071,653 10,405,265 13,546,094 5,514,695 2,937,038 144,666 101,910 120,375 43,687 25,948 35,312 3,492,385 1,899,292 2,064,772 1,971,568 1,860,401 902,642 113,333,968 101,451,015 98,819,554 99,530,379 91,977,093 83,298,613 20,752,447 17,550,219 19,467,660 19,845,271 18,764,120 15,873,077 41,818,175 37,561,425 37,688,666 40,092,514 37,200,157 35,303,024 8,343,159 6,288,435 6,124,178 5,976,475 6,002,662 5,756,640 6,431,466 4,358,155 5,553,419 6,540,963 4,487,506 3,726,545 5,884,420 8,182,275 6,689,550 12,031,983 8,087,672 5,998,243 4,331,273 3,894,076 2,857,130 2,685,847 2,759,895 2,629,571 15,302,467 18,790,506 14,745,973 20,336,052 15,709,827 11,532,622 - - - 263,186 - - 7,230,906 5,288,125 5,893,021 3,000,277 3,095,171 2,681,335 652,771 403,894 370,289 375,133 453,690 500,053 110,747,084 102,317,110 99,389,886 ll1,147,701 96,560,700 84,001,110 2,586,884 (866,095) (570,332) (ll,617,322) (4,583,607) (702,497) 6,533 70,168 31,257 78,017 97,758 37,973 6,308,930 8,127,442 3,907,447 4,173,735 1,136,617 - 55,335 367,442 40,000 80,000 - 40,000 (555,335) (2,117,442) (40,000) (80,000) - (40,000) 5,815,463 6,447,610 3,938,704 4,251,752 1,234,375 37,973 $ 8,402,347 $ 5,581,515 $ 3,368,372 $ (7,365,570) $ (3,349,232) $ (664,524) 8.25% 6.79% 7.18% 3.63% 4.28% 4.21% -510- CITY OF CANTON STARK COUNTY,OHIO INCOME TAX REVENUE BASE AND COLLECTIONS LAST TEN YEARS (CASH BASIS OF ACCOUNTING) Percentage Percentage Percentage Percentage Taxes of Taxes of Taxes of Taxes Taxes of Taxes From from Tax Tax Total Tax Taxes from from Taxes from from from from Delinquent Delinquent Year Rate(1) Collected Withholding Withholding Corporations Corparations Individuals Individuals Accounts Accounts 2022 2.50% $71,726,333 $53,879,845 75.12% $ 11,305,946 15.76% $4,729,656 6.59% $ 1,810,886 2.52% 2021 2.50% 64,300,111 49,499,826 76.98% 8,284,700 12.88% 4,698,385 7.31% 1,817,200 2.83% 2020 2.50% 57,668,168 47,097,188 81.67% 4,855,267 8.42% 4,246,654 736% 1,469,059 2.55% 2019 2.50% 64,723,178 50,232,415 77.61% 5,891,045 9.10% 5,558,594 8.59% 3,041,124 4.70% 2018 2.50% 54,531,663 42,906,957 78.68% 5,531,988 10.14% 3,619,871 6.64% 2,472,847 4.53% 2017 2.00% 53,106,892 39,776,565 74.90% 5,667,557 10.67% 3,535,200 6.66% 4,127,570 7.77% 2016 2.00°/a 51,223,298 38,385,018 74.94°/a 4,606,635 8.99% 3,352,182 6.54% 4,879,463 9.53% 2015 2.00% 46,385,997 36,254,046 78.16% 5,122,365 ll.04% 3,131,067 6.75% 1,878,519 4.05% 2014 2.00°/a 49,024,719 38,010,089 77.53°/a 6,653,764 13.57% 2,641,532 539% 1,719,334 3.51% 2013 2.00% 47,631,995 38,100,594 79.99% 4,732,915 9.94% 2,402,215 5.04% 2,396,271 5.03% (1) Rates may only be raised by obtaining the approval of a majority of the voters at a public election. -S11 - CITY OF CANTON STARK COUNTY,OHIO 1NCOME TAX FILERS BY 1NCOME LEVEL TAX YEARS 2022 AND 2013 Tax Year 2022 Percent of Income Number of Percent of Taxable Taxable Range Filers Filers Income Income Over$100,000 576 7.36% $ 91,260,679 29.20% $75,001-$100,000 459 5.86% 39,556,396 12.66% $50,001-$75,000 1,119 14.29% 67,829,969 21.71% $25,001-$50,000 2,231 28.50% 81,540,680 26.09% Under$25,000 3,444 43.99% 32,303,853 1034% Total 7,829 100.00% $ 312,491,577 100.00% Tax Year 2013 Percent of Income Number of Percent of Taxable Taxable Range Filers Filers Income Income Over$100,000 266 2.15% $ 69,753,562 30.91% $75,001-$100,000 261 2.11% 22,340,068 9.90% $50,001-$75,000 648 5.24% 39,610,022 17.55% $25,001-$50,000 1,522 12.31% 53,611,706 23.75% Under$25,000 9,665 78.18% 40,371,480 17.89% Total 12,362 99.99% $ 225,686,838 100.00% Source: City of Canton Income Tax Department - S 12- CITY OF CANTON STARK COUNTY,OHIO RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN YEARS Governmental Activities Business-Type Activities General Long-term General Obligation Notes Financcd purchase Lease Obligation Financed purohase Lease Bonds Loans Payable Note payable Payable Bonds Loans Note payable Payable 2022 $ 7,249,186 $ 4,L19,275 $ 900,000 $ 1,097,561 $ 179,570 $ 10,068,314 $ 88,883,380 $ 756,301 $ 14,135 2021 - 4,744,733 4,SOQ000 1,655,662 44,098 - 92,484,293 895,055 17,507 2020 - 5,07L,295 4,725,000 - 2,60L,690 - 96,337,689 - - 2019 - 5,337,601 5,025,000 - 1,402,920 - 99,264,617 - - 2018 - 4,303,852 5,20Q000 - 483,991 - 102,204,653 - - 2017 I,O50,000 3,625,608 5,40Q000 - 834,211 - 100,968,536 - - 2016 2,065,000 2,245,869 3,SOQ000 - 259,633 - 86,886,192 - - 2015 4,142,229 2,016,596 3,500,000 - 397,251 772,770 75,025,996 - - 2014 6,696,770 1,655,482 - - 530,366 1,908,230 38,906,893 - - 2013 9,164,587 1,497,214 - - 179,371 3,OOQ414 30,499,920 - - (I)Source:US Census Bureau. -S13- Total Total Percent of Primary Personal Personal Per Government Income Income PopulationQ) Capita 113,267,722 803,20L,187 14.L0% 69,67L $ 1,626 104,341,348 900,797,018 11.58% 70,426 1,482 108,735,674 1,400,99Q989 7.76% 70,447 1,544 111,030,138 1,970,535,328 5.63% 70,002 1,586 112,192,496 1,861,073,L20 6.03% 70,458 1,592 111,878,355 2,165,588,250 5.17% 7Q909 1,578 94,956,694 2,086,86Q000 4.55% 71,323 1,331 85,854,842 1,969,255,650 4.36% 73,007 1,176 49,697,741 2,032,581,050 2.45% 72,297 687 44,341,506 2,025,14Q466 2.19% 72,683 610 -S 14- CITY OF CANTON STARK COUNTY, OHIO RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING(2) LAST TEN YEARS General Bonded Debt Outstanding Net Position Net General Governmental Business-Type Restricted for Bonded Debt Obligation Obligation Total Debt Service Outstanding 2022 $ 7,249,186 $ 10,068,314 $ 17,317,500 $ ll9,175 $ 17,198,325 2021 - - - ll4,813 (114,813) 2020 - - - 100,624 (100,624) 2019 - - - 86,ll3 (86,113) 2018 - - - 69,497 (69,497) 2017 1,050,000 - 1,050,000 34,988 1,015,012 2016 2,065,000 - 2,065,000 28,314 2,036,686 2015 4,142,229 772,770 4,914,999 54,923 4,860,076 2014 6,696,770 1,908,230 8,605,000 26,856 8,578,144 2013 9,164,587 3,000,414 12,165,001 19,617 12,145,384 (1) Stark County Auditor's Off'ice. (2)This schedule has been revised in 2016 to include amounts externally restricted for the repayment of the principal of general bonded debt. - S 15 - Ratio of Net Estimated True Bonded Debt to Net Value of Estimated True Bonded Taxable Value of Taxable Debt per Property(1) Property Capita $ 2,788,983,257 0.62% $ 246.85 2,502,235,057 0.00% (1.63) 2,492,631,257 0.00% (1.43) 2,545,988,405 0.00% (1.23) 2,258,567,280 0.00% (0.99) 2,131,095,629 0.05% 14.31 2,100,573,771 0.10% 28.56 2,148,602,349 0.23% 66.57 2,069,026,657 0.41% ll8.65 2,122,120,589 0.57% 167.10 - 516- CITY OF CANTON STARK COUNTY, OHIO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31,2022 Percentage Amount General Obligation Applicable Applicable to Debt Outstanding(1) to City(2) City of Canton Direct City of Canton $ 13,545,592 100.00% $ 13,545,592 Overlapping Debt Stark County 13,208,690 9.70% 1,281,243 Canton City Schools 4,850,000 89.93% 4,361,605 Canton Local Schools 30,692,477 8.91% 2,734,700 Osnaburg Local Schools 5,500,000 5.10% 280,500 Total Overlapping Debt 54,251,167 8,658,048 Total $ 67,796,759 $ 22,203,640 Source: Stark County, Ohio; County Auditor (1)Includes general obligation debt except for those payable from enterprise funds (2)Percentages were determined by dividing the assessed valuation of the political subdivision located within the boundaries of the City by the assessed valuation of the political subdivision. - 517 - THIS PAGE IS INTENTIONALLY LEFT BLANK. - 518 - CITY OF CANTON STARK COUNTY,OHIO LEGAL DEBT MARGIN INFORMATION LAST TEN YEARS 2022 2021 2020 2019 Overall Debt Limitation(10.5%of Assessed Valuation) $ 102,495,135 $ 91,957,138 $ 91,604,199 $ 90,005,488 Net Debt Within 10.5%Limitations 7,136,708 (107,661) (91,789) (79,493) Overall Legal Debt Margin Within 10.5°/o Limitations $ 95,358,427 $ 92,064,799 $ 91,695,988 $ 90,084,981 Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 6.96% -0.12% -0.10°/o -0.09% Unvoted Debt Limitation(5.5%of Assessed Valuation) $ 53,687,928 $ 48,168,025 $ 47,983,152 $ 47,145,732 Net Debt Within 5.5%Limitations 7,136,708 (107,661) (91,789) (79,493) Unvoted Legal Debt Margin Within 5.5%Limitations $ 46,551,220 $ 48,275,686 $ 48,074,941 $ 47,225,225 Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 13.29% -0.22% -0.19°/o -0.17% Note: Under State of Ohio finance law,the City of Canton's outstanding general obligation debt should not exceed 10.5%of total assessed property value. In addition, the outstanding general obligation debt net voted debt should not exceed 5.5%of total assessed property value. By law,the general obligation debt subject to the limitation is offset by amounts set aside for repaying general obligation bonds. -S 19- 2018 2017 2016 2015 2014 2013 $ 79,844,609 $ 78,317,764 $ 76,590,382 $ 76,590,382 $ 76,036,730 $ 75,406,074 (63,134) 1,021,133 2,042,627 4,093,073 10,078,532 10,653,423 $ 79,907,743 $ 77,296,631 $ 74,547,755 $ 72,497,309 $ 65,958,198 $ 64,752,651 -0.08°/a 1.30°/a 2.67% 5.34°/a 13.25% 14.13°/a $ 41,823,367 $ 41,023,591 $ 40,ll8,772 $ 40,118,772 $ 39,828,763 $ 39,498,420 (63,134) 1,021,133 2,042,627 4,093,073 10,078,532 10,653,423 $ 41,886,501 $ 40,002,458 $ 38,076,145 $ 36,025,699 $ 29,750,231 $ 28,844,997 -0.15°/a 2.49°/a 5.09% 10.20°/a 25.30% 26.97°/a -520- CITY OF CANTON STARK COUNTY, OHIO COMPUTATION OF LEGAL DEBT MARGIN AS OF DECEMBER 31,2022 Total Assessed Property Value $ 976,144,140 Overall Debt Limitation(10 1/2 % of Assessed Valuation) $ 102,495,135 Gross Indebtedness 113,267,722 Less: Enterprise Funds' G.O. Bonds (10,068,314) OWDA Loans (85,026,367) OPWC Loan (7,381,687) SIB Loans (594,601) Long-Term Notes Payable (900,000) Capital Lease (2,047,567) Debt Service Fund Balance (112,478) Net Debt Within 10 1/2 %Limitations 7,136,708 Legal Debt Margin Within 10 1/2 %Limitations $ 95,358,427 Unvoted Debt Limitation (5 1/2%of Assessed Valuation) $ 53,687,928 Gross Indebtedness 113,267,722 Less: Enterprise Funds' G.O. Bonds (10,068,314) OWDA Loans (85,026,367) OPWC Loan (7,381,687) SIB Loans (594,601) Long-Term Notes Payable (900,000) Capital Lease (2,047,567) Debt Service Fund Balance (112,478) Net Debt Within 5 1/2 %Limitations 7,136,708 Legal Debt Margin Within 5 1/2%Limitations $ 46,551,220 Source: Stark County, Ohio: County Auditor - 521 - CITY OF CANTON STARK COUNTY,OHIO PLEDGED REVENUE COVERAGE-WATER LAST TEN YEARS Water Water Net Debt Service(2) Operating Operating Available Year Revenues Expenses(1) Revenues Principal Interest Coverage 2022 $ 21,829,346 $ 11,944,058 9,885,288 $ 2,408,936 $ 612,690 3.27 2021 21,192,324 8,449,607 12,742,717 2,461,163 602,317 4.16 2020 20,798,243 8,926,729 11,871,514 2,047,453 657,041 4.39 2019 19,880,871 13,013,933 6,866,938 2,015,894 708,081 2.52 2018 19,212,411 14,187,213 5,025,198 1,916,880 761,085 1.88 2017 18,516,422 13,895,418 4,621,004 1,828,154 810,532 1.75 2016 17,077,822 11,864,387 5,213,435 1,690,414 858,350 2.05 2015 17,635,080 10,489,977 7,145,103 1,230,068 655,415 3.79 2014 15,558,604 12,561,631 2,996,973 1,207,800 693,767 1.58 2013 14,966,698 10,773,779 4,192,919 1,226,158 292,830 2.76 (1)Direct operating expenses do not include depreciation expense. (2)Debt service only includes OWDA and OPWC loans payable solely from net revenues in the water enterprise fund. - 522- CITY OF CANTON STARK COUNTY,OHIO PLEDGED REVENUE COVERAGE- SEWER LAST TEN YEARS Sewer Sewer Net Debt Service(2) Operating Operating Available Year Revenues Expenses(1) Revenues Principal Interest Coverage 2022 $ 24,796,138 $ 11,427,114 $ 13,369,024 $ 3,604,986 $ 2,041,741 2.37 2021 17,203,829 10,142,677 7,061,152 3,486,314 2,146,959 1.25 2020 18,002,338 12,977,623 5,024,715 3,367,327 2,248,705 0.89 2019 17,621,516 11,200,671 6,420,845 4,224,121 2,366,590 0.97 2018 16,461,823 13,448,984 3,012,839 4,090,914 2,487,139 0.46 2017 19,372,303 12,979,807 6,392,496 3,961,951 2,603,864 0.97 2016 14,905,867 10,696,474 4,209,393 896,391 92,616 4.26 2015 15,744,326 11,804,564 3,939,762 869,478 119,325 3.98 2014 13,952,785 10,399,217 3,553,568 846,280 142,524 3.59 2013 13,914,466 9,639,001 4,275,465 1,370,935 234,030 2.66 (1)Direct operating expenses do not include depreciation expense. (2)Debt service only includes OWDA and OPWC loans payable solely from net revenues in the sewer enterprise fund. - 523 - CITY OF CANTON STARK COUNTY, OHIO DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN YEARS Per Total Personal Capita Unemployment Population(1) Income Income Rate(2) 2022 69,671 $ 803,201,187 11,528 3.7% 2021 70,426 900,797,018 12,791 3.7% 2020 70,447 1,400,990,989 19,887 5.3% 2019 70,002 1,970,535,328 28,150 4.5% 2018 70,458 1,861,073,120 26,414 5.0% 2017 70,909 2,165,588,250 30,540 5.1% 2016 71,323 2,086,860,000 29,259 5.9% 2015 73,007 1,969,255,650 26,974 5.8% 2014 72,297 2,032,581,050 28,114 4.7% 2013 72,683 2,025,140,450 27,863 6.9% (1) Source: US Census Bureau. (2) Source: U.S. Dept. of Labor - 524 - CITY OF CANTON STARK COUNTY,OHIO PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2022 Percentage of Total City Employer Nature of Activity Employees Employment Aultman Hospital Health Service 4,423 5.86% Cleveland Clinic Mercy Health Service 2,420 3.21% Stark County Government 2,172 2.88% Canton City Schools Education 2,157 2.86% Walmart Retail 1,736 2.30% Timken Steel Steel 1,613 2.14% Fresh Mark Inc Meat processing 1,593 2.11% City of Canton Municipal Government 943 1.25% MK Morse Co Saw Blades and Accessories 506 0.67% Hendrickson USA Heavy Duty Suspensions 401 0.53% Total 17,964 23.81% Estimated Total Employment within the City 75,434 2013 Percentage of Total City Employer Nature of Activity Employees Employment Aultman Hospital Health Service 3,827 15.21% Canton City School District Education 2,642 10.50% Mercy Medical Center Health Service 2,618 10.40% The Timken Co. Tapered roller bearings and steel 2,506 9.96% Stark County County Government 1,953 7.76% Fresh Mark Inc. Meat Processing 1,176 4.67% City of Canton Municipal Government 1,141 4.53% Republic Engineered Steels,Inc. Hot-rolled and cold finished steel bars and specialty steels 1,042 4.14% Nationwide Insurance Insurance Provider 745 2.96% Republic Storage Systems Manufacturer,Metal Lockers&Equi� 514 2.04% Total 18,164 72.17% Estimated Total Employment within the City 25,163 Source: Survey of Employers performed by City Community Development Department and City Income Tax Department - S25 - THIS PAGE IS INTENTIONALLY LEFT BLANK. - 526 - CITY OF CANTON STARK COUNTY, OHIO FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN YEARS Function/Program 2022 2021 2020 2019 2018 Governmental Employees General government 183 187 175 157 179 Security of persons and property 373 375 378 374 361 Public health 57 54 52 55 51 Transportation 48 45 51 50 46 Community development 13 13 16 16 15 Leisure time activities 30 31 30 30 27 Total Governmental Employees 704 705 702 682 679 Business-Type Employees Water 87 88 88 85 85 Sewer 76 75 79 80 80 Refuse 57 61 60 61 60 Building Code 19 20 21 21 21 Total Business-Type Employees 239 244 248 247 246 Total Employees 943 949 950 929 925 Method: Part-time and seasonal employees are not included Source: City of Canton Auditor's Office - 527 - 2017 2016 2015 2014 2013 178 182 183 188 183 347 372 380 379 361 47 51 52 53 52 38 47 47 50 46 13 16 16 16 15 28 17 21 21 14 651 685 699 707 671 89 86 90 85 85 72 74 75 73 76 62 61 67 63 61 23 - - - - 246 221 232 221 222 897 906 931 928 893 - 528 - CITY OF CANTON STARK COUNTY,OHIO CAPITAL ASSETS STATISTICS BY FUNCTION/PROGRAM LAST TEN YEARS Function/Program 2022 2021 2020 2019 2018 General Government Departmental vehicles 55 54 52 52 48 Security of Persons and Property Police stations 5 5 5 5 5 Police department vehicles 120 ll 9 120 113 ll 8 Fire stations 7 7 7 7 7 Fire department vehicles 49 45 50 49 49 Intersections with traffic lights 194 195 198 198 199 Traffic department vehicles 17 17 17 16 17 Public Health Departmental vehicles 32 31 27 25 27 Transportation Area(in square miles) 25.70 25.70 25.70 25.70 25.70 Miles of streets 412.60 413.15 413.57 413.87 414.31 Bridges 24 24 24 24 24 Miles of storm sewers 264.59 219.85 219.85 219.55 21935 Departmental vehicles 103 98 101 104 98 Leisure Time Activities Number of parks 62 62 61 61 61 Park acreage 825 825 825 825 825 Number of shelters 25 25 25 25 25 Number of baseball fields 41 41 41 41 41 Walking tracks 4 4 4 4 4 Walking bridges 17 17 17 17 17 Play equipment sets 49 44 44 44 43 Restrooms 21 21 21 21 20 Number of tennis courts 8 8 8 8 8 Swimming pools 1 1 1 1 1 Community centers 1 1 1 1 1 Departmental vehicles 47 47 51 48 51 Water Miles of water mains 648.01 643.12 67236 668.10 666.28 Water treatment plants 3 3 3 3 3 Maximum daily capacity in gallons(in millions) 40,500 40,500 40,500 40,500 40,500 Number of fire hydrants 3,815 5,538 5,537 5,475 5,449 Departmental vehicles 98 96 95 92 92 Sewer Miles of sanitary sewers 357.93 354.20 36431 36431 363.25 Sewer treatment plants 1 1 1 1 1 Maximum daily capacity in gallons(in millions) Wet weather 88,000 88,000 88,000 88,000 88,000 Dry weather 39,000 39,000 39,000 39,000 39,000 Departmental vehicles 75 73 73 69 69 Refuse Departmental vehicles 29 28 27 26 27 Building Code Departmental vehicles 7 7 7 6 4 Source:Various City of Canton Deparhnents -S29- 2017 2016 2015 2014 2013 43 38 43 38 38 5 5 5 5 5 125 132 129 124 122 7 7 7 7 8 46 48 48 46 44 200 200 200 203 236 17 17 16 15 16 24 24 24 21 19 25.70 25.70 25.70 25.70 25.70 414.11 413.73 413.44 413.44 414.11 24 24 24 24 24 21935 219.15 218.96 218.96 217.48 96 103 108 99 102 61 61 61 61 61 825 825 812 812 812 25 25 25 25 24 41 43 43 43 43 4 4 4 4 4 17 17 17 17 17 43 43 41 41 39 20 21 20 20 19 8 8 8 8 8 1 1 1 - - 1 1 1 1 1 50 50 49 46 45 666.65 664.23 663.99 661.24 66832 3 1 3 3 3 40,500 40,500 40,500 40,500 40,500 5,430 3,321 3,309 3,274 3,258 90 89 87 81 81 364.25 363.00 363.00 363.00 360.00 1 1 1 1 1 88,000 67,000 67,000 67,000 67,000 39,000 39,000 39,000 39,000 39,000 71 69 71 67 68 27 26 26 29 28 2 - - - - -S30- CITY OF CANTON STARK COUNTY,OffiO OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN YEARS Funcrion/Program 2022 2021 2020 2019 2018 General Government Auditor Purchase orders issued 6,599 6,016 6,174 7,197 6,974 Checks issued 15,367 14,981 15,158 15,211 14,830 Payroll checks issued 36,646 35,637 36,771 35,631 34,193 Civil service Tests administered 106 70 37 40 31 Courts Cases heard 30,813 21,032 18,496 27,936 28,372 Trials held 57 69 39 103 108 Probation cases 140 181 180 282 285 Community service Cases 950 1,028 1,057 1,879 2,215 House arrest cases - - - - - Income tax Refundsissued 4,187 1,596 1,434 1,647 1,811 Tax notifications mailed 41,706 42,620 41,063 39,940 39,160 Law department Claims 182 129 100 l78 306 Trials conducted 15 23 8 40 137 Pretrials conducted 3,306 4,643 3,218 3,945 5,114 Prosecutor hearings 35 14 9 34 101 Criminal intakes 1,013 779 664 1,678 1,677 Security of Persons and Property Code enfarcement Building permits issued 780 895 605 782 899 Building permits esrimated value(in millions) $184,869 $180,731 $105,252 $148,864 $39,526 Police Physical arrests 2,697 1,575 2,050 3,360 3,594 Traffic violations 3,540 4,468 3,709 7,329 7,827 Parking violations 4,368 6,848 5,562 9,424 7,891 Fire Calls answered 17,652 18,069 16,117 16,318 15,175 Public Health Birth certificates issued 8,868 9,627 8,453 10,557 9,280 Death certificates issued 8,927 10,285 8,097 6,666 6,881 Nursing Home visits 383 125 251 276 329 Air pollution complaints Investigated 232 282 290 209 258 Food service inspections 1,034 614 695 1,192 1,159 Transportation Road salt expense $427,992 $408,626 $441,379 $610,710 $389,807 Leisure Time Activities Shelter/building permits issued 799 402 30 759 738 Water Number of service connections 44,971 44,516 44,616 44,575 44,543 Daily average consumption in gallons(in millions) 19.066 19,126.000 19.146 21107 21.869 Sewer Number of active sewer accounts 26,457 26,481 26,547 25,981 25,981 Daily average treatment in gallons(in millions) 25.90 25.71 27.48 30.70 30.06 Source:Various City of Canton Departments - S 31 - 2017 2016 2015 2014 2013 6,182 6,677 7,754 7,143 6,924 14,430 15,420 16,682 16,953 15,946 34,407 - 27,952 28,402 27,335 31 21 27 34 30 29,582 27,066 27,051 26,761 25,745 122 162 169 198 180 362 381 425 465 442 2,108 2,166 2,250 2,171 1,971 - - - 109 107 1,606 2,652 2,526 2,564 2,718 36,685 36,681 33,978 30,604 31,650 214 115 422 487 180 73 68 284 299 119 9,474 7,660 7,961 6,489 7,218 323 132 212 67 76 430 1,772 1,190 1,872 1,919 903 3,131 641 638 685 $23,256 $164,796 $107,339 $47,834 $75,616 2,544 2,191 - 2,390 2,013 5,545 3,065 - 3,086 2,074 7,116 - 9,800 9,145 10,100 16,681 15,529 15,350 13,835 14,276 9,723 9,650 9,411 9,553 9,619 6,492 6,667 6,653 6,678 6,798 266 - 329 322 307 274 199 266 276 249 1,309 553 2,019 2,278 2,539 $354,748 $528,478 $590,690 $270,154 $500,693 746 858 879 708 450 44,509 44,480 44,431 44,367 44,360 19.467 21.988 21147 20.089 17.897 25,981 26,433 26,510 26,514 27,763 29.06 28.46 30.04 30.14 27.18 - S32 - I . e e � _ Q'1 D a 1`1 4 *.�r��.��" .'� � . , ''41 �� <' � �� - 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