HomeMy WebLinkAboutCity of Lakeland - Public Financial ReportANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
PREPARED BY:
THE CITY OF LAKELAND FINANCE DEPARTMENT
CITY OF LAKELAND, TENNESSEE
TABLE OF CONTENTS
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Page
INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal 6
GFOA Certificate of Achievement for Excellence in Financial Reporting 9
City of Lakeland Organizational Chart 10
City and Board of Education Officials 11
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 13
MANAGEMENT’S DISCUSSION AND ANALYSIS 16
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 25
Statement of Activities 26
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet 27
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 28
Statement of Revenues, Expenditures, and Changes in Fund Balances 29
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 Balances – Budget and Actual
– General Fund 31
– General Purpose School Fund 35
Proprietary Fund Financial Statements
Statement of Net Position 39
Statement of Revenues, Expenses, and Changes in Net Position 40
Statement of Cash Flows 41
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position 42
Statement of Changes in Fiduciary Net Position 43
Notes to Financial Statements 44
CITY OF LAKELAND, TENNESSEE
TABLE OF CONTENTS (CONTINUED)
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Exhibit Page
REQUIRED SUPPLEMENTARY INFORMATION
Lakeland School System and City of Lakeland–Public Employee
Retirement Plan (TCRS Agent Plan)
– Schedule of Changes in Net Pension Liability (Asset) and Related Ratios A-1 75
– Schedule of Contributions A-2 76
Lakeland School System – Teacher Legacy Pension Plan (Certified TCRS Plan)
– Schedule of Proportionate Share of the Net Pension Liability (Asset) A-3 77
– Schedule of Contributions A-4 78
Lakeland School System – Teacher Retirement Pension Plan (TCRS Hybrid Plan)
– Schedule of Proportionate Share of the Net Pension Liability (Asset) A-5 79
– Schedule of Contributions A-6 80
Lakeland School System Other Postemployment Benefit Plan
– Schedule of Changes in Net OPEB Liability and Related Ratios A-7 81
– Schedule of Contributions A-8 82
– Schedule of Money-Weighted Rate of Return A-9 83
SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Nonmajor Governmental Fund Combining Financial Statements
Combining Balance Sheet B-1 86
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances B-2 87
Governmental Individual Fund Schedules:
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Special Revenue Funds
– State Street Aid Fund B-3 88
– Storm Water Fund B-4 89
– Solid Waste Fund B-5 90
– School Federal Projects Fund B-6 91
– School Nutrition Fund B-7 92
– School Discretionary Grants Fund B-8 93
– Lakeland Extended Activities Program Fund B-9 94
School Capital Projects Fund B-10 95
Debt Service Fund B-11 96
SUPPORTING SCHEDULES
Schedule of Transfers C-1 98
Schedule of Interfund Receivables and Payables C-2 99
Schedule Principal and Interest Requirements
– General Obligation Bonds and Notes Payable – Governmental Funds C-3 100
– Revenue Bonds – Sewer Fund C-4 102
Schedule of Changes in Long-Term Debt by Individual Issuance C-5 103
Schedule of Changes in Property Taxes – By Levy Year C-6 104
Schedule of Official Bonds of Principal Officials C-7 105
Schedule of Utility Rate Structure and Number of Customers C-8 106
CITY OF LAKELAND, TENNESSEE
TABLE OF CONTENTS (CONTINUED)
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Exhibit Page
STATISTICAL SECTION (UNAUDITED)
Statistical Section – Table of Contents 108
Financial Trends
Net Position by Component D-1 109
Changes in Net Position D-2 110
Fund Balances of Governmental Funds D-3 112
Changes in Fund Balances – Governmental Funds D-4 113
Revenues by Fiscal Year – General Fund D-5 114
Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund D-6 115
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property D-7 116
Analysis of Value of Taxable Property – Current Fiscal Year D-8 117
Direct and Overlapping Property Tax Rates D-9 118
Principal Property Tax Payers D-10 119
Property Tax Levies and Collections D-11 120
Sales Tax by Fiscal Year D-12 121
Direct and Overlapping Sales Tax Rates D-13 122
Taxable Sales by Category D-14 123
Local Sales Tax Revenue by Industry D-15 124
Debt Capacity
Ratios of Outstanding Debt by Type D-16 125
Ratios of General Bonded Debt D-17 126
Direct and Overlapping Debt – Governmental Activities D-18 127
Demographic and Economic Information
Demographics and Economic Indicators D-19 128
Principal Employers D-20 129
Operating Information
Full-time Equivalent Employees by Function D-21 130
Operating Indicators by Function D-22 131
Capital Assets Statistics by Function D-23 132
GOVERNMENT AUDITING STANDARDS SECTION
Schedule of Expenditures of Federal Awards and State Financial Assistance 134
Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance 136
Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 137
Independent Auditor’s Report on Compliance for Each Major Program and on Internal
Control Over Compliance Required by the Uniform Guidance 139
Schedule of Findings and Questioned Costs 142
Summary of Prior Year Audit Findings 144
Management’s Corrective Action Form 145
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INTRODUCTORY SECTION (UNAUDITED)
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10001 US Highway 70 Lakeland, TN 38002
Phone: (901) 867-2717 | Fax: (901) 867-2063
February 13, 2025
To the Honorable Mayor, Members of the Board of Commissioners, and Citizens of the City of Lakeland:
State law requires that every general-purpose local government publish, within six months of the close of each fiscal
year, a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal
year ended June 30, 2024 (with allowed and approved extensions).
Management assumes full responsibility for the completeness and reliability of the information contained in this report,
based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost
of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute,
assurance that the financial statements are free of any material misstatements.
Watkins Uiberall, PLLC, Certified Public Accountants, have issued an unmodified (clean) opinion on the City of
Lakeland’s financial statements for the year ended June 30, 2024. The independent auditor’s report is located at the
front of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a
narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of
transmittal and should be read in conjunction with it.
Profile of the City
The City of Lakeland (the City), incorporated in 1977, is located in the western part of the state, which is considered
to be one of the most highly populated areas of the State of Tennessee. The City currently occupies approximately
24 square miles and serves an estimated population of 14,186 (see Exhibit D-19 (a)). The City is empowered to levy
a property tax on real property located within its boundaries.
The City has operated by charter under the city manager-commission form of government since 1977. Policymaking
and legislative authority are vested in the Board of Commissioners (the Board), consisting of the mayor and four other
members, all of whom are elected at large. Commissioners serve four-year terms, with two members elected every
two years. The Mayor is elected for a four-year term. The Board appoints the City Manager, who in turn appoints the
City’s department heads.
The City provides a full range of services, including refuse collection, leaf removal, licenses and permits, vital
statistics, the construction and maintenance of roads and other infrastructure, recreational and park activities, and
wastewater treatment. Water distribution services are provided through a separate governmental entity, Memphis
Light Gas & Water.
The Board of Commissioners is required to adopt an initial budget for the fiscal year no later than June 30 preceding
the beginning of the fiscal year on July 1. This annual budget serves as the foundation for the City’s financial planning
and control. The budget is prepared by fund, function (e.g., community services), and department (e.g., engineering).
The City Manager and Finance Director may transfer resources within a fund as they see fit, subject to reporting of
such transfers at the next Board of Commissioners meeting. Budget amendments to increase the total appropriation
of a fund require approval by Ordinance of the Board of Commissioners passed upon two readings and a public
hearing (which may be in conjunction with the second reading).
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Local Economy
The City of Lakeland is a suburb in a metropolitan area and functions as a major commuter hub and suburban
residential center. The City is the home of many affluent residential developments. Major industries located within the
City’s boundaries or in proximity include retail trade, professional services, and wholesale distributors. The Lakeland
School System and City also have a significant economic presence, employing in total more than 380 teachers,
professionals, and support staff. The current unemployment rate for the City is estimated to be 4.6% (see Exhibit D-
19 (D)) which is the lowest it has been since before the pandemic. The City has historically experienced
unemployment rates consistent with national averages.
Per capita personal income within the City is significantly higher than the county or the state as a whole. The City’s
per capita personal income was $67,467 (Exhibit D-19 (c)). According to the United Census Bureau the county’s was
$37,666 while the state’s was $37,866. The City’s population has increased significantly over the past year, growing
from an estimated 13,713 to 14,186. Housing prices in the vicinity of the City of Lakeland continue to remain strong. At
the end of the third quarter of 2023, the median price of a single-family home in the City was $373,800. Due to its
strong and healthy local tax base, the City has maintained a credit rating of Aa3 from Moody’s Investor Service since
2012.
Over the past ten plus years, the City has experienced a period of significant economic growth and investment. Three
large-scale mixed-use and single-family residential developments have been completed or are in various stages of
construction in the City. These developments, combined with an easy commute to the nearby metropolitan center,
an award-winning school system, and the presence of recreational and natural amenities has further strengthened
the City’s economic base. Thanks to the strength of the housing market and the City’s reliance upon property taxes
as a large portion of its revenue base, the City has remained financially healthy.
During the past ten years, the City’s expenditures related to education have increased the total expenditures in
governmental funds and are currently 45.5%. These increases are due to the creation within this decade of the
Lakeland School System, and reflect the move in Shelby County, Tennessee of many municipalities that formed their
own school districts beginning with the fiscal year ended June 30, 2013.
During this same ten-year period, a property tax was established in the City of Lakeland in 2012 to fund education in
the fiscal year ended June 30, 2013. This currently represents 27.1% of governmental funds revenues.
Long-term Financial Planning and Major Initiatives
Unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) in the
general fund at year end was 83.7% of total general fund revenues. Unassigned fund balance was 68.7% of total
general fund revenues, which is significantly higher than the policy guidelines set by the Board of Commissioners for
budgetary and planning purposes (25% of general fund recurring revenues, plus $1.1 million).
As part of its long-term transportation plan, the Board envisions the completion of New Canada Road. Federal funding
covering 80% of planned expenditures has been secured, and loan funds from the U.S. Department of Agriculture
(USDA) have been obligated for the City’s remaining 20% match. Due to rising construction costs, the City is currently
seeking funding alternatives for anticipated expenditures in excess of currently-awarded grant totals.
As mentioned earlier, the City has undergone a recent period of growth and expansion. New residential development
has been extremely strong, with nearly 3,000 housing units being constructed and/or approved in the past ten years.
The City maintains a five-year Capital Improvement Program, which serves as its planning document to ensure that
its facilities, equipment, and infrastructure are well maintained and operating in peak condition. This process gives
the City the ability to plan for its capital needs and allocate short- and long-term resources appropriately. As part of
this process, the City identifies and quantifies the operational costs associated with its capital projects and budgets
resources accordingly. The fiscal year 2025-2029 Capital Improvement Program anticipates approximately $111
million in capital projects. Included is $22 million for construction of a new Lakeland Community Center and $35
million for the completion of New Canada Road. The remainder of the program will finance improvements to the City’s
parks, transportation system, and public works functions. Related to this Capital Improvement Program, the City’s
Long-Term Financial Plan anticipates the issuance of $26.2 million in additional debt in fiscal year 2025.
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Relevant Financial Policies
The City of Lakeland has adopted a comprehensive set of financial policies. During the current year, one of these
policies was particularly relevant. The City's financial policies manual includes policies addressing long-term debt,
including the policy that long-term debt is not utilized for operations, but only for capital projects or construction
identified through the City's long-term financial planning process, including capital improvement projects. During the
fiscal year ended June 30, 2024, the City's proprietary fund issued long-term debt to fund construction costs on certain
infrastructure projects, in line with the financial policy of only issuing debt to support capital needs. The construction
costs are reflected as assets and the debt as liabilities on the Proprietary Fund Statement of Net Position.
Awards and Acknowledgements
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 Lakeland for its annual comprehensive financial
report for the fiscal year ended June 30, 2023. This was the fourth year that the government has achieved this
prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive
financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to
GFOA to determine its eligibility for another certificate.
The GFOA also awarded a Distinguished Budget Presentation Award for the City’s fiscal year 2025 annual budget
document dated June 15, 2024. To qualify for the Distinguished Budget Presentation Award, the City’s budget
document had to be judged proficient as a policy document, a financial plan, an operations guide, and a
communications device. This marks the fifth consecutive time the City has received this recognition.
The preparation of this report would not have been possible without the skill, effort, and dedication of the entire staff
of the Finance Departments of both the City of Lakeland and Lakeland School Systems. We want to thank all City of
Lakeland departments for their assistance in providing the data necessary to prepare this report. Credit is also due
to the Board of Commissioners for their unfailing support in maintaining the highest standards of professionalism in
the management of the City of Lakeland’s finances.
Respectfully submitted,
Sue Matthews Michael Walker
Finance Director City Manager
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CITY OF LAKELAND, TENNESSEE
CITY OF LAKELAND ORGANIZATION CHART
June 30, 2024
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CITY OF LAKELAND, TENNESSEE
CITY AND BOARD OF EDUCATION OFFICIALS
June 30, 2024
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BOARD OF COMMISSIONERS
Josh Roman, Mayor (2026*)
Michele Dial, Vice Mayor (2026*)
Jim Atkinson, Commissioner (2024*)
Connie McCarter, Commissioner (2026*)
Wesley Wright, Commissioner (2024*)
CITY OFFICIALS
City Manager ................................................................................................ Michael Walker, CPA
City Attorney ........................................................................ Will Patterson, Patterson Bray, PLLC
Finance Director .................................................................................................... Sue Matthews**
BOARD OF EDUCATION OFFICIALS
Laura Harrison, Chair (2026*)
Jeremy Burnett, Vice Chair (2024*)
Michelle Childs, Board Member (2024*)
Deborah Thomas, Board Member (2026*)
Keith Acton, Board Member (2026*)
Superintendent ............................................................................................... William E. Horrell, III
School System Attorney ............................................................... Burch, Porter & Johnson, PLLC
Finance Director ........................................................................... Tristan Gately-Sweatt, CMFO**
* Date elected term expires
** Employee with financial oversight responsibility
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
To the Board of Commissioners of the
City of Lakeland, Tennessee:
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activity,
each major fund, the fiduciary fund, and the aggregate remaining fund information of the City of Lakeland, Tennessee,
(the “City”) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activity, each major fund, the fiduciary fund, and the
aggregate remaining fund information of the City of Lakeland, Tennessee, as of June 30, 2024, and the respective
changes in financial position and, where applicable, cash flows thereof and the statements of budgetary comparison
for the general fund and each major special revenue fund 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, and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Responsibilities of Management’s for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
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omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable
user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis and certain pension and other postemployment benefit information as 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 information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of Lakeland, Tennessee’s basic financial statements. The accompanying combining and individual fund
financial statements and schedules, supporting schedules, and schedule of expenditures of federal awards and state
financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual fund financial statements and schedules, the supporting schedules, and the schedule
of expenditures of federal awards and state financial assistance are fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
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Emphasis of Matter – Subsequent Revision of Supplementary Information
As discussed in Note 15 to the financial statements, the schedule of expenditures of federal awards and state financial
assistance (SEFA) has been revised to include previously omitted federal expenditures related to the Clean Water
State Revolving Fund ALN: 66.458, which were material to the SEFA and subject to Single Audit requirements. Our
opinion on the SEFA as of February 13, 2025, has been updated accordingly. Our opinion on the financial statements
is not modified with respect to this matter.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory section and statistical section but does not include the basic financial statements and our auditor’s
report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not
express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 22, 2025, on our
consideration of the City of Lakeland’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 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 Lakeland’s internal control over financial reporting and compliance.
Memphis, Tennessee
February 13, 2025, except for Note 15 and the SEFA, as to which the date is July 22, 2025
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2024
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As management of the City of Lakeland, Tennessee (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. We
encourage readers to consider the information presented here in conjunction with additional information that is
furnished in the notes to the financial statements.
Financial Highlights
The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at
the close of the most recent fiscal year by $112,560,953 (net position). The net position of the City of Lakeland
consists of $91,998,553 in net investment in capital assets, $12,006,318 in restricted, and $8,556,082 in
unrestricted. The unrestricted net position may be used to meet the government’s ongoing obligations to citizens
and creditors.
The City of Lakeland’s change in net position was negative $1,422,520 for the year ended June 30, 2024, a
decrease of $9,368,501 under the prior fiscal year primarily due to increases in education expenses as an
additional high school grade level was served during the fiscal year as well as increases in general government
expenses related to property purchased that was not subject to capitalization.
As of June 30, 2024, the City of Lakeland’s governmental funds reported combined ending fund balances of
$18,126,185, a decrease of $8,472,278 in comparison with the prior year due primarily to the use of fund balance
for capital outlays related to accommodating an additional grade level in a new high school facility.
At the end of the current fiscal year, unassigned fund balance for the general fund was $6,948,587 or 92.2% of
total general fund balance.
The City of Lakeland’s total debt increased $3,963,627 during the current fiscal year. This is primarily due to
draws on Sewer Fund debt of $5,042,702 and offset by scheduled principal repayments on existing general
obligation debt and Sewer Fund debt.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Lakeland’s basic financial
statements. The City’s basic financial statements consist of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements – The government-wide financial statements are designed to provide
readers with a broad overview of the City’s finances in a manner like a private-sector business.
The government-wide financial statements are:
Statement of Net Position – presents information on all the City’s assets and deferred outflows and liabilities
and deferred inflows, with the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial net position of the City is
improving or deteriorating.
Statement of Activities – presents information showing how the City’s net position changed during the most
recent fiscal year. All current year revenues and expenses are considered regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused leave).
Both government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenues (governmental activities) and other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities
of the City include general government, community development, public works, parks and recreation, and education.
The business-type activities of the City include the operations of the sewer facilities.
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
For the Year Ended June 30, 2024
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The government-wide financial statements also include the operations of the Lakeland School System (LSS).
The government-wide financial statements can be found on pages 25-26 of this report.
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 the funds of the
City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains five individual governmental funds and LSS maintains seven individual governmental funds.
Information is presented separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures, and changes in fund balances for the general fund, the general-purpose school fund, the
school capital projects fund, and the debt service fund.
The City adopts an annual appropriated budget for all governmental funds, including the funds of the LSS except for
the Internal School Fund. Budgetary comparison statements have been provided to demonstrate compliance with
these budgets.
The basic governmental fund financial statements can be found on pages 27-38 of this report.
Proprietary funds – The City maintains one type of proprietary fund – an enterprise fund. Enterprise funds are used
to report the same functions presented as business-type activities in the government-wide financial statements. The
City uses an enterprise fund to account for its Sewer operations. Proprietary funds provide the same type of
information as the government-wide financial statements, only in more detail. The proprietary fund financial
statements provide information for the sewer activities of the City, which is a major fund.
The basic proprietary fund financial statements can be found on pages 39-41 of this report.
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of
those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much
like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 42-43 of this report.
Notes to the 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. The notes to the financial statements
can be found on pages 44-73 of this report.
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
For the Year Ended June 30, 2024
18
Required Supplementary Information – In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information regarding the City’s and LSS’s pension plans and
LSS’s other postemployment benefit plan, in Exhibits A-1 through A-9.
Combining and Individual Fund Statements and Schedules – The combining and individual fund statements and
schedules related to nonmajor governmental funds and budgetary comparison schedules for major funds, other than
major special revenue funds, are presented immediately following the required supplementary information. These
statements and schedules are presented as Exhibits B-1 through B-11.
Supporting Schedules, and Other Schedules – Supporting schedules and other schedules are included as
prescribed by the State of Tennessee. These statements and schedules are presented as Exhibits C-1 through C-8.
Statistical Information –Statistical information is included to enhance reader understanding, as required to be
reported in the Annual Comprehensive Financial Report. These statements and schedules are presented as Exhibits
D-1 through D-23.
Government-Wide Financial Analysis
Net Position – Net position may serve over time as a useful indicator of a government’s financial position. In the
case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $112,560,953 at the close
of the most recent fiscal year, a decrease of $1,422,520 or 1.2%, from last year.
The largest portion of the City’s net position (81.7%) reflects its net investment in capital assets (e.g., land, buildings,
equipment, and infrastructure). The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City’s investment in its capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources
since the capital assets themselves cannot be used to liquidate these liabilities.
The following provides a summary of the City’s net position for the fiscal years ended June 30, 2024 and 2023:
2024 2023 2024 2023 2024 2023
Current and other assets 31,990,949$ 38,641,527$ 1,308,858$ 1,157,924$ 33,299,807$ 39,799,451$
Capital assets 137,081,983 131,784,625 25,589,493 15,636,660 162,671,476 147,421,285
Total Assets 169,072,932 170,426,152 26,898,351 16,794,584 195,971,283 187,220,736
Deferred Outflows of Resources 4,508,919 4,486,122 26,510 29,711 4,535,429 4,515,833
Long-term liabilities outstanding 60,090,982 62,068,348 5,787,166 2,085,643 65,878,148 64,153,991
Other liabilities 4,976,858 2,868,875 6,975,609 822,540 11,952,467 3,691,415
Total Liabilities 65,067,840 64,937,223 12,762,775 2,908,183 77,830,615 67,845,406
Deferred Inflows of Resources 10,114,238 9,905,185 906 2,505 10,115,144 9,907,690
Net Asset
Invested in capital assets 77,101,130 73,163,543 14,897,423 13,571,660 91,998,553 86,735,203
Restricted 12,006,318 10,846,427 - - 12,006,318 10,846,427
Unrestricted 9,292,325 16,059,896 (736,243) 341,947 8,556,082 16,401,843
Total Net Position 98,399,773$ 100,069,866$ 14,161,180$ 13,913,607$ 112,560,953$ 113,983,473$
Condensed Statement of Net Position
Governmental Activities Business-Type Activities Totals
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
For the Year Ended June 30, 2024
19
An additional portion of the City’s net position of $12,006,318 (10.7%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position of $8,556,082
(7.6%) may be used to meet the government’s ongoing obligations to citizens and creditors.
Changes in Net Position: Governmental activities decreased the City’s net position by $1,670,093 while business-
type activities increased the City’s net position by $247,573 resulting in a net decrease of $1,422,520. Key elements
of this increase are discussed below.
The following provides a summary of activities for the City for the years ended June 30, 2024 and 2023:
2024 2023 2024 2023 2024 2023
Revenues:
Program Revenues:
Charges for services 2,819,529$ 2,593,866$ 2,422,202$ 1,887,349$ 5,241,731$ 4,481,215$
Operating grants and contributions 18,502,789 17,512,419 61,372 - 18,564,161 17,512,419
Capital grants and contributions 1,776,358 5,999,299 - 363,947 1,776,358 6,363,246
General Revenues:
Property taxes 12,000,408 10,591,634 - - 12,000,408 10,591,634
Local taxes 7,398,069 6,880,132 - - 7,398,069 6,880,132
Intergovernmental 2,074,699 1,860,270 - - 2,074,699 1,860,270
Interest on investments 412,659 293,013 5,417 96,585 418,076 389,598
Other revenue 151,613 1,364,077 5,339 - 156,952 1,364,077
Insurance recoveries 232,120 - - - 232,120 -
Total Revenues 45,368,244 47,094,710 2,494,330 2,347,881 47,862,574 49,442,591
Expenses:
General government 5,386,179 2,448,002 - - 5,386,179 2,448,002
Community development 1,179,351 1,051,168 - - 1,179,351 1,051,168
Public works 7,560,961 6,389,408 - - 7,560,961 6,389,408
Parks and recreation 1,338,097 1,188,121 - - 1,338,097 1,188,121
Education 30,340,419 27,190,110 - - 30,340,419 27,190,110
Interest and fiscal charges 1,233,330 1,287,073 - - 1,233,330 1,287,073
Debt Issuance costs - - - - - -
Water and sewer - - 2,246,757 1,942,728 2,246,757 1,942,728
Total Expenses 47,038,337 39,553,882 2,246,757 1,942,728 49,285,094 41,496,610
Increase/(Decrease) in net position (1,670,093) 7,540,828 247,573 405,153 (1,422,520) 7,945,981
Net position, beginning 100,069,866 92,529,038 13,913,607 13,508,454 113,983,473 106,037,492
Net position, ending 98,399,773$ 100,069,866$ 14,161,180$ 13,913,607$ 112,560,953$ 113,983,473$
Condensed Statement of Activities
Governmental Activities Business-Type Activities Totals
Governmental Activities: Current fiscal year revenues for the City’s governmental activities were $45,368,244
compared to $47,094,710 last year. Expenses for the same period were $47,038,337 compared to $39,553,882 last
year.
General revenue increased for the year, while program revenue decreased slightly; the most notable changes are
discussed below.
Capital grants and contributions decreased from $5,999,299 to $1,776,358 primarily related to a reduction of
expenditures and associated reimbursement grant revenue on the Highway Planning and Construction grant
for the New Canada Road project.
Property taxes increased from $10,591,634 to $12,000,408 due to continued residential and commercial
development within the City.
Local taxes increased from $6,880,132 to $7,398,069 due to continued commercial development within the City
and increased consumer prices and spending.
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
For the Year Ended June 30, 2024
20
Other revenue decreased from $1,364,077 to $151,613 and operating grants and contributions increased from
$17,512,419 to $18,502,789 due to a change in classification of school student activity fund revenue previously
presented as general revenue in the prior year.
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
General
government
Community
development
Public works Parks and
recreation
Education Interest on long-
term debt
Debt issuance
costs
Do
l
l
a
r
s
Governmental Activities Revenues and Expenses
Expenses Revenues
6%
41%
4%
26%
16%
5%
1%0%
1%
Governmental Activities Revenues by Source
Charges for services
Operating grants and contributions
Capital grants and contributions
Property taxes
Local taxes
Intergovernmental
Interest on investments
Other revenue
Insurance recoveries
Business-type activities: Business-type activities increased the City’s net position by $247,573. The largest
factors contributing to this increase were 1) improved interest income in a rising rate environment and 2)
developer contributions of infrastructure.
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
For the Year Ended June 30, 2024
21
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to help control and manage money for particular purposes or to ensure
and demonstrate compliance with finance-related legal requirements. The following provides a more detailed
analysis of the City’s funds.
Governmental funds: Governmental funds focus on providing 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 a government’s net resources available for spending at
the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$18,126,185, a decrease of $8,472,278 over the prior year. The decrease was primarily due to capital outlay
expenditures of $10,581,774 used towards capital needs in the new high school facility funded by debt issued in a
prior fiscal year, and acquisition costs of land to be utilized for future projects. Approximately 37% of this total amount
($6,697,792) constitutes unassigned fund balance, which is available for spending at the government’s discretion.
All the governmental funds reported a positive ending fund balance.
General Fund: The general fund is the chief operating fund of the City. At the end of the current fiscal year,
unassigned fund balance of the General Fund was $6,948,587, while total fund balance reached $7,536,843. As a
measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund
balance to total fund expenditures. Unassigned fund balance represents approximately 49.0% of total general fund
expenditures, while total fund balance represents 53% of that same amount.
The fund balance of the City’s general fund decreased $6,272,378 during the fiscal year ended June 30, 2024. The
primary factor related to this decrease was the purchase of property, both capitalizable and noncapitalizable, as a
part of the to be used in future projects..
General Purpose School Fund: The general-purpose school fund is the chief operating fund of LSS and focuses
on providing educational instruction for students enrolled in the City’s municipal school system. At June 30, 2024,
the fund had a fund balance of $7,049,636, all of which is restricted for education expenditures.
The fund balance of the general-purpose school fund increased $722,710 during the fiscal year ended June 30, 2024
(an insignificant change).
Proprietary fund: The City’s proprietary fund provides the same type of information found in the government-wide
financial statements for business-type activities, but in more detail. Unrestricted net position for the Sewer fund
increased during the year by $341,947 to $(736,243) at the end of the year.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget in the general fund are summarized as follows:
The original budget for revenues increased from $17,966,032 to $18,022,388 in the final budget. The increased
revenues budget was due to budget amendments passed via ordinance for the carryforward of grant revenues
on projects with costs deferred from the prior fiscal year to the current fiscal year.
The original budget for expenditures increased from $27,189,289 to $28,874,273 in the final budget. The
increased expenditures budget was due to budget amounts encumbered in the prior fiscal year and carried
forward to the current fiscal year and budget amendments passed via ordinance for increased costs related to
capital projects in progress.
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
For the Year Ended June 30, 2024
22
The general fund revenues were $5,360,133 less than budgeted. The variance was due primarily to $4,883,811
in lower than expected federal, state, and local grant revenue related to the timing of associated grant
expenditures.
General fund expenditures were less than budgeted by $14,592,217. Of this, $16,790,502 is related to lower
than expected expenditures for capital outlays as noted previously. These capital outlays were to be offset by
previously issued but undrawn debt which was less than budget by $14,500,000.
The variations noted above between budgeted and actual results are not expected to have a significant impact on
the general fund’s future liquidity or service levels; however, the delay in capital projects will require future budget
amendments and revisions during fiscal year 2025.
Capital Asset and Debt Administration
Capital assets: The City’s capital assets for its governmental and business-type activities as of June 30, 2024
amounts to $162,671,476 (net of accumulated depreciation, but not net of related debt). This capital assets includes
land, buildings, improvements, machinery and equipment, subscription assets, and infrastructure including streets.
The total increase in the City’s capital assets for the current fiscal year was $15,250,191 primarily related to additions
in the Sewer Fund for the Clear Creek Interceptor which is an ongoing project. Depreciation expense for the year
was $5,089,407 mostly from depreciation of infrastructure and buildings.
2024 2023 2024 2023 2024 2023
Land 13,779,408$ 9,428,436$ 75,360$ 75,360$ 13,854,768$ 9,503,796$
Buildings and improvements 79,889,522 81,025,825 6,062,081 6,317,880 85,951,603 87,343,705
Improvements other than buildings 1,761,913 1,769,317 6,567,177 6,790,756 8,329,090 8,560,073
Machinery and equipment 5,467,240 5,441,593 652,310 709,647 6,119,550 6,151,240
Vehicles 282,195 396,900 - - 282,195 396,900
Infrastructure 22,404,091 22,711,344 - - 22,404,091 22,711,344
Subscription asset 690,718 54,356 - - 690,718 54,356
Construction in progress 12,806,896 10,956,854 12,232,565 1,743,017 25,039,461 12,699,871
Total capital assets, net 137,081,983$ 131,784,625$ 25,589,493$ 15,636,660$ 162,671,476$ 147,421,285$
Condensed Statement of Capital Assets (Net of Depreciation)
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 6 of this report.
Long-term debt: At the end of the current fiscal year, the City had total debt outstanding of $66,337,842, all of which
is debt backed by the full faith and credit of the government, although $6,446,702 of this amount represents notes
secured primarily by a specified revenue source with a full faith and credit pledge.
2024 2023 2024 2023 2024 2023
Notes payable -$ -$ 6,446,702$ 2,065,000$ 6,446,702$ 2,065,000$
Settlement liability 167,603 167,603 - - 167,603 167,603
Construction loan 1,174,437 1,241,104 - - 1,174,437 1,241,104
General obligation bonds 57,910,754 58,847,259 - - 57,910,754 58,847,259
Subscription liability 638,346 53,249 - - 638,346 53,249
Total debt 59,891,140$ 60,309,215$ 6,446,702$ 2,065,000$ 66,337,842$ 62,374,215$
Governmental Activities Business-Type Activities Totals
Condensed Statement of Outstanding Debt
As mentioned above, the City’s total debt increased $3,963,627 during the current fiscal year due to draws on
previously issued debt within the Sewer Fund.
Additional information on the City’s long-term debt can be found in Note 7 of this report.
CITY OF LAKELAND, TENNESSEE
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
For the Year Ended June 30, 2024
23
Currently Known Facts, Decisions, or Conditions of Future Significance
As of the report date of this Annual Comprehensive Financial Report, the following items are considered to hold
future significance for the City of Lakeland:
Governmental Activities –
During the fiscal year ended June 30, 2024, the City took possession of certain property within the City of
Lakeland to be utilized as the construction site of a planned Lakeland Community Center. The fiscal year
ending June 30, 2025, annual budget includes the planned capital outlays and debt issuance related to this
project in future fiscal years.
The high school facility at Lakeland Preparatory School continues to add one grade level per year, with related
increases in governmental activities intergovernmental revenues and related education expenses. The final
grade level will be added during fiscal year ending June 30, 2026.
Business-type Activities –
During the fiscal year ended June 30, 2024, the City implemented sewer rate changes effective on
December 1, 2023. This rate will significantly increase business-type activities and the sewer fund
revenue for future fiscal years.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in
the government’s finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the City of Lakeland, Finance Director, 10001 U.S. Highway
70, Lakeland, Tennessee 38002.
BASIC FINANCIAL STATEMENTS
24
CITY OF LAKELAND, TENNESSEE
STATEMENT OF NET POSITION
June 30, 2024
Governmental Business-Type
Activitie Activit Total
ASSETS
Cash and cash equivalents 16,988,499$ 816,532$ 17,805,031$
Receivables
Property taxes 6,081,782 - 6,081,782
Customer 289,693 - 289,693
Other 61,407 1,721 63,128
Less allowance for doubtful accounts (65,559) - (65,559)
Due from other governments 4,303,136 490,605 4,793,741
Internal balances 1,024,354 (1,024,354) -
Inventory 8,363 - 8,363
Prepaid items 599 - 599
Net pension asset 2,995,969 - 2,995,969
Restricted investments 302,706 - 302,706
Capital assets, not being depreciated 26,586,304 12,307,925 38,894,229
Capital assets, being depreciated, net 110,495,679 13,281,568 123,777,247
Total assets 169,072,932 26,898,351 194,946,929
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 3,278,402 26,510 3,304,912
Related to OPEB 1,230,517 - 1,230,517
Total deferred outflows of resources 4,508,919 26,510 4,535,429
LIABILITIES
Accounts payable and accrued liabilities 1,918,744 5,214,017 7,132,761
Accrued payroll 1,241,540 49,238 1,290,778
Accrued interest payable 150,695 - 150,695
Customer deposits 130,225 - 130,225
Unearned revenue 53,515 - 53,515
Noncurrent liabilities:
Due within one year 1,482,139 688,000 2,170,139
Due in more than one year
Other liabilities 58,927,661 5,758,702 64,686,363
Net pension liability 323,527 28,464 351,991
Net other postemployment benefits liability 839,794 - 839,794
Total liabilities 65,067,840 12,762,775 76,806,261
DEFERRED INFLOWS OF RESOURCES
Current property taxes assessed for subsequent period 5,841,566 - 5,841,566
Related to pension 805,651 906 806,557
Related to other postemployment benefits 2,789,944 - 2,789,944
Gain on refunding 677,077 - 677,077
Total deferred inflows of resources 10,114,238 906 10,115,144
NET POSITION
Net investment in capital assets 77,101,130 14,897,423 91,998,553
Restricted for:
Net pension asset 2,995,969 - 2,995,969
Stabilization reserve trust 302,706 - 302,706
Storm wate 372,642 - 372,642
School activities 8,335,001 - 8,335,001
Unrestricted 9,292,325 (736,243) 8,556,082
Total net position 98,399,773$ 14,161,180$ 112,560,953$
Primary Government
The accompanying notes are an integral part of the financial statements.
25
CITY OF LAKELAND, TENNESSEE
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2024
Operating Capital
Charges Grants and Grants and Governmental Business-Type
Functions/Programs Expenses for Services Contributions Contributions Activitie Activitie Total
Primary government:
Governmental Activities:
General government 5,386,179$ -$ 25,000$ -$ (5,361,179)$ -$ (5,361,179)$
Community development 1,179,351 191,725 - 152,934 (834,692) - (834,692)
Public works 7,560,961 1,588,578 795,907 490,759 (4,685,717) - (4,685,717)
Parks and recreation 1,338,097 170,954 - - (1,167,143) - (1,167,143)
Education 30,340,419 868,272 17,681,882 1,132,665 (10,657,600) - (10,657,600)
Interest on long-term debt 1,233,330 - - - (1,233,330) - (1,233,330)
Total governmental activities 47,038,337 2,819,529 18,502,789 1,776,358 (23,939,661) - (23,939,661)
Business-Type activity:
Sewer 2,246,757 2,422,202 61,372 - - 236,817 236,817
Total primary governmen 49,285,094$ 5,241,731$ 18,564,161$ 1,776,358$ (23,939,661) 236,817 (23,702,844)
General revenues:
Property taxes 12,000,408 - 12,000,408
Local option sales tax 6,754,613 - 6,754,613
Other taxes
Wholesale liquor and beer taxes 235,345 - 235,345
Business, cable tv, and hotel-motel taxes 408,111 - 408,111
Intergovernmental revenues:
State sales tax 1,729,780 - 1,729,780
Other state revenue 344,919 - 344,919
Other revenue 151,613 5,339 156,952
Interest on investments 412,659 5,417 418,076
Insurance recoveries 232,120 232,120
Total general revenues and transfers 22,269,568 10,756 22,280,324
Change in net position (1,670,093) 247,573 (1,422,520)
Net position - beginning 100,069,866 13,913,607 113,983,473
Net position - ending 98,399,773$ 14,161,180$ 112,560,953$
Program Revenues Net (Expense) Revenue and Changes in Net Position
The accompanying notes are an integral part of the financial statements.
26
CITY OF LAKELAND, TENNESSEE
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2024
General Nonmajo Total
General Purpose Governmental Governmental
Fund School Fund Funds Funds
ASSET
Cash and cash equivalents 6,198,025$ 6,081,931$ 4,708,543$ 16,988,499$
Receivables
Property taxes 6,081,782 - - 6,081,782
Custome - - 289,693 289,693
Other 55,968 3,607 1,832 61,407
Less allowance for doubtful accounts (65,559) - - (65,559)
Due from other governments 1,172,857 2,255,875 874,404 4,303,136
Due from other funds 1,352,115 288,146 13,121 1,653,382
Inventory 2,861 - 5,502 8,363
Prepaid items - 599 - 599
Restricted investments - 302,706 - 302,706
Total assets 14,798,049$ 8,932,864$ 5,893,095$ 29,624,008$
LIABILITIES
Accounts payable and
accrued liabilities 772,244$ 128,192$ 1,018,308$ 1,918,744$
Accrued payroll 96,793 1,090,262 54,485 1,241,540
Customer deposits 130,225 - - 130,225
Due to other funds 72,575 - 556,453 629,028
Unearned revenue 25,000 - 28,515 53,515
Total liabilities 1,096,837 1,218,454 1,657,761 3,973,052
DEFERRED INFLOWS OF RESOURCE
Unavailable revenue
Property taxes 5,954,185 - - 5,954,185
Other taxes - 664,774 - 664,774
Grants 203,739 - 695,628 899,367
Other 6,445 - - 6,445
Total deferred inflows of resources 6,164,369 664,774 695,628 7,524,771
FUND BALANCE
Nonspendable 2,861 599 - 3,460
Restricted - 7,049,037 2,548,676 9,597,713
Committed 350,572 - 1,241,825 1,592,397
Assigned 234,823 - - 234,823
Unassigned 6,948,587 - (250,795) 6,697,792
Total fund balances 7,536,843 7,049,636 3,539,706 18,126,185
Total liabilities, deferred inflows of
resources and fund balances 14,798,049$ 8,932,864$ 5,893,095$ 29,624,008$
The accompanying notes are an integral part of the financial statements.
27
CITY OF LAKELAND, TENNESSEE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF
NET POSITION
June 30, 2024
18,126,185$
(1)
137,081,983
(2)
1,683,205
(3)
Less: subscription lease payabl (638,346)$
Less: general obligation bonds (57,910,754)
Less: settlement obligation (167,603)
Less: construction loan (1,174,437) (59,891,140)
(4)
Less: accrued interest payable (150,695)
Less: compensated absences payable (518,660) (669,355)
(5)
dd: net pension asse 2,995,969
Less: net pension liabilit (323,527)
Less: net other postemployment liabilit (839,794) 1,832,648
(6)
dd: deferred outflows of resources related to pensions 3,278,402
dd: deferred outflows of resources related to OPEB 1,230,517
Less: deferred inflows of resources related to pensions (805,651)
Less: deferred inflows of resources related to OPEB (2,789,944) 913,324
(7)
(677,077)
Net position of governmental activities 98,399,773$
The gain recognized on refunding debt is not a financial resource and will
be amortized in future years.
Amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions and OPEB will be amortized and
recognized as components of pension and OPEB expense in future
years.
Net pension assets are not a financial resource in the current period, and
net pension liabilities and net other postemployment liabilities are not
payable with current financial resources and, therefore, are not reported
in the funds.
Amounts reported for governmental activities in the statement of net position
are different because:
Total fund balances, governmental funds
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are unearned or unavailable in the funds.
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds.
Long-term debt is not due and payable in the current period and,
therefore is not reported in the funds.
The accompanying notes are an integral part of the financial statements.
28
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2024
General Nonmajor Total
General Purpose Governmental Governmental
Fund School Fund Funds Funds
REVENUES
Property taxes 5,879,855$ 6,120,553$ -$ 12,000,408$
Local taxes 3,516,029 3,803,812 - 7,319,841
Intergovernmental
State sales, income and other tax 2,052,521 - - 2,052,521
State gas tax - - 490,759 490,759
State grant revenue - 14,740,152 - 14,740,152
Licenses and permits 197,325 - - 197,325
Charges for services 165,354 58,743 2,398,107 2,622,204
Federal, state, and local grants 409,545 305,451 1,357,804 2,072,800
Contributions - - 1,132,665 1,132,665
Co-curricular - - 1,145,785 1,145,785
Interest on investments 383,444 2,255 26,960 412,659
Other 58,182 86,188 7,243 151,613
Total revenues 12,662,255 25,117,154 6,559,323 44,338,732
EXPENDITURES
Current
General government 4,871,053 - - 4,871,053
Community development 1,128,616 - - 1,128,616
Public works 725,531 - 5,163,079 5,888,610
Parks and recreation 1,136,620 - - 1,136,620
Education - 24,391,531 3,182,018 27,573,549
Debt Service
Principal 111,788 - 1,031,384 1,143,172
Interest and fiscal charges 2,356 - 1,442,477 1,444,833
Capital outlay 6,306,092 79,718 4,195,964 10,581,774
Total expenditures 14,282,056 24,471,249 15,014,922 53,768,227
Excess (deficiency) of reveneus
over (under) expenditures (1,619,801) 645,905 (8,455,599) (9,429,495)
OTHER FINANCING SOURCES (USES)
Issuance of subscription liability 642,127 - 82,970 725,097
Insurance recovery 133,042 - 99,078 232,120
Transfers in - 740,595 5,350,941 6,091,536
Transfers out (5,427,746) (663,790) - (6,091,536)
Total other financing sources (uses) (4,652,577) 76,805 5,532,989 957,217
Net change in fund balances (6,272,378) 722,710 (2,922,610) (8,472,278)
Fund balances - beginning 13,809,221 6,326,926 6,462,316 26,598,463
Fund balances - ending 7,536,843$ 7,049,636$ 3,539,706$ 18,126,185$
The accompanying notes are an integral part of the financial statements.
29
CITY OF LAKELAND, TENNESSEE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2024
(8,472,278)$
(1)
dd: capital outlays capitalize 10,386,765$
Less: depreciation expense (5,089,407) 5,297,358
(2)
860,878
(3)
dd: principal payments on long-term deb 1,143,172
Less: proceeds from debt issuance (725,097) 418,075
(4)
dd: amortization of deferred amount on refunding debt 208,332
Change in accrued interest payabl 3,171
Change in compensated absences (233,019) (21,516)
(5)
Difference between actual contributions and pension expense 12,549
Difference between actual contributions and OPEB expense 234,841 247,390
Change in net position of governmental activitie (1,670,093)$
Payments of contributions to the pension plans and OPEB plan are
recorded as expenditures in the governmental funds. Pension expense
and OPEB expense are recorded on an actuarially determined basis in the
statement of activities.
Net change in fund balance - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. In the
statement of activities, the cost of those assets is allocated over their
estimated useful lives as depreciation expense. This is the amount by
which capital outlays exceeded depreciation in the current period.
The issuance o long-term debt (e.g. bonds, notes, othe loans) provides
current financial resources to governmental funds, while the repayment of
the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net
position. This amount is the net effect of these differences in the treatment
of long-term debt and related items.
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. This is the net
difference between the amounts deferred in the current and prior years.
The accompanying notes are an integral part of the financial statements.
30
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
PROPERTY TAXES
Property taxes 5,817,444$ 5,817,444$ 5,872,739$ 55,295$
Property tax interest and penalties 11,571 11,571 7,116 (4,455)
Total property taxes 5,829,015 5,829,015 5,879,855 50,840
LOCAL TAXES
Local sales tax 3,541,386 3,541,386 2,872,573 (668,813)
Wholesale beer and liquor tax 147,881 147,881 235,345 87,464
Business tax 158,173 158,173 161,230 3,057
Hotel/motel tax 130,918 130,918 95,875 (35,043)
CATV franchise tax 130,674 130,674 119,857 (10,817)
Other revenue 17,261 17,261 31,149 13,888
Total local taxes 4,126,293 4,126,293 3,516,029 (610,264)
INTERGOVERNMENTAL
State of Tennessee shared revenues
Sales tax 1,851,492 1,851,492 1,707,602 (143,890)
Beer and liquor tax 1,200 1,200 51,037 49,837
City streets and transportation funding 25,000 25,000 28,024 3,024
Receipts in lieu of tax - TVA 275,000 275,000 265,858 (9,142)
Total intergovernmental 2,152,692 2,152,692 2,052,521 (100,171)
LICENSES AND PERMITS
Other general government 1,000 1,000 - (1,000)
Parks improvement fees 4,600 4,600 5,600 1,000
Building and related permits 75,000 75,000 47,280 (27,720)
Other permits 32,750 32,750 46,057 13,307
Engineering fees 28,100 28,100 43,100 15,000
Administrative fees for developments 16,197 16,197 55,288 39,091
Total licenses and permits 157,647 157,647 197,325 39,678
CHARGES FOR SERVICES
Recreation fees for services 162,500 162,500 99,211 (63,289)
Parks development fees 27,885 27,885 32,964 5,079
Rental income 32,000 32,000 33,179 1,179
Total charge for services 222,385 222,385 165,354 (57,031)
FEDERAL, STATE AND LOCAL GRANTS 5,240,000 5,293,356 409,545 (4,883,811)
INTEREST ON INVESTMENTS 223,000 223,000 383,444 160,444
OTHER 15,000 18,000 58,182 40,182
Total revenues 17,966,032 18,022,388 12,662,255 (5,360,133)
Budgeted Amounts
(CONTINUED ON NEXT PAGE)
The accompanying notes are an integral part of the financial statements.
31
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgeted Amounts
EXPENDITURES
GENERAL GOVERNMENT
General Government
Salaries 216,303$ 278,303$ 276,379$ 1,924$
Benefits 63,296 103,421 101,478 1,943
Contractual services 643,199 766,606 3,049,005 (2,282,399)
Materials and supplies 58,000 80,959 223,768 (142,809)
Insurance 68,203 82,703 82,586 117
Other charges 97,500 110,073 104,583 5,490
1,146,501 1,422,065 3,837,799 (2,415,734)
Municipal Court
Salaries 7,700 4,100 4,001 99
Benefits 1,089 2,589 2,001 588
Contractual services 1,200 25,800 9,521 16,279
9,989 32,489 15,523 16,966
Board and Commissions
Salaries 25,200 25,900 25,900 -
Benefits 2,968 3,568 3,081 487
Other charges - 4,500 3,145 1,355
28,168 33,968 32,126 1,842
Financial Administration
Salaries 283,562 295,962 290,537 5,425
Benefits 130,810 100,860 92,817 8,043
Contractual services 17,000 54,200 49,970 4,230
Materials and supplies 2,500 500 - 500
Other charges 8,500 9,200 8,771 429
442,372 460,722 442,095 18,627
GIS
Salaries 207,282 204,982 199,278 5,704
Benefits 67,006 70,106 62,959 7,147
Contractual services 312,420 313,320 227,350 85,970
Materials and supplies 73,250 121,894 29,064 92,830
Other charges 54,850 68,704 24,859 43,845
714,808 779,006 543,510 235,496
Total general government 2,341,838 2,728,250 4,871,053 (2,142,803)
(CONTINUED ON NEXT PAGE)
The accompanying notes are an integral part of the financial statements.
32
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgeted Amounts
COMMUNITY DEVELOPMENT
Engineering
Salaries 143,281$ 138,681$ 132,826$ 5,855$
Benefits 38,114 44,314 41,347 2,967
Contractual services 45,000 68,055 210,962 (142,907)
Materials and supplies 2,700 4,200 3,456 744
Other charges 13,510 16,270 11,240 5,030
242,605 271,520 399,831 (128,311)
Construction Inspection
Salaries 132,401 138,001 111,299 26,702
Benefits 70,067 56,267 53,558 2,709
Materials and supplies 5,400 4,400 4,202 198
Other charges 11,200 12,400 9,383 3,017
219,068 211,068 178,442 32,626
Code Enforcement
Salaries 48,298 50,698 49,325 1,373
Benefits 24,883 24,983 23,619 1,364
Materials and supplies 4,400 4,400 2,556 1,844
Other charges 1,200 1,500 1,000 500
78,781 81,581 76,500 5,081
Planning and Economic Development
Salaries 265,700 257,600 252,076 5,524
Benefits 95,885 87,685 79,329 8,356
Contractual services 165,000 164,600 114,597 50,003
Materials and supplies 500 500 - 500
Other charges 32,025 33,425 27,841 5,584
559,110 543,810 473,843 69,967
Total community development 1,099,564 1,107,979 1,128,616 (20,637)
PUBLIC WORKS
Salaries 405,899 424,499 424,299 200
Benefits 169,212 194,843 173,878 20,965
Contractual services 40,000 29,922 27,530 2,392
Materials and supplies 53,000 68,273 66,533 1,740
Other charges 27,450 34,950 33,291 1,659
Total public works 695,561 752,487 725,531 26,956
PARKS AND RECREATION
Senior Citizen
Contractual services 3,500 3,700 3,689 11
Materials and supplies 23,250 22,980 21,643 1,337
Other charges 32,850 31,050 28,489 2,561
59,600 57,730 53,821 3,909
(CONTINUED ON NEXT PAGE)
The accompanying notes are an integral part of the financial statements.
33
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgeted Amounts
IH Clubhouse
Contractual services 3,000$ 5,500$ 4,393$ 1,107$
Materials and supplies 30,000 41,800 40,766 1,034
Other charges 14,650 15,650 13,462 2,188
47,650 62,950 58,621 4,329
Recreation
Contractual services 68,000 66,100 64,231 1,869
Materials and supplies 41,000 60,281 58,529 1,752
Other charges 44,000 32,400 27,203 5,197
153,000 158,781 149,963 8,818
Park Administration
Salaries 390,001 433,101 416,868 16,233
Benefits 168,950 166,000 155,864 10,136
Contractual services 175,500 159,700 159,559 141
Materials and supplies 45,950 46,561 45,402 1,159
Other charges 93,040 104,140 96,522 7,618
873,441 909,502 874,215 35,287
Total parks and recreation 1,133,691 1,188,963 1,136,620 52,343
DEBT SERVICE
Principal - - 111,788 (111,788)
Interest - leases - - 2,356 (2,356)
Total debt service - - 114,144 (114,144)
CAPITAL OUTLA 21,918,635 23,096,594 6,306,092 16,790,502
Total expenditures 27,189,289 28,874,273 14,282,056 14,592,217
Deficiency of revenues
under expenditures (9,223,257) (10,851,885) (1,619,801) 9,232,084
OTHER FINANCING SOURCES (USES)
Issuance of debt 14,500,000 14,500,000 - (14,500,000)
Issuance of subscription liability - - 642,127 642,127
Insurance recovery - - 133,042 133,042
Transfers out (5,964,258) (6,447,302) (5,427,746) 1,019,556
Total other financing sources (uses)8,535,742 8,052,698 (4,652,577) (12,705,275)
Net change in fund balances (687,515)$ (2,799,187)$ (6,272,378) (3,473,191)$
Fund balances - beginning 13,809,221
Fund balances - ending 7,536,843$
The accompanying notes are an integral part of the financial statements.
34
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL PURPOSE SCHOOL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
PROPERTY TAXE 6,187,10$ 6,187,10$ 6,120,55$ (66,554)$
LOCAL TAXE 3,879,53 3,879,53 3,803,812 (75,726)
INTERGOVERNMENTA
TN Investment in Student Achievemen 13,481,95 13,861,95 14,001,72 139,775
Career Ladder Program 20,000 20,000 17,480 (2,520)
Privilege tax 480,000 480,000 555,636 75,636
Othe 78,015 78,015 52,525 (25,490)
Parental leave - - 112,783 112,783
Total intergovernmental 14,059,96 14,439,96 14,740,15 300,184
CHARGES FOR SERVICE 43,000 43,000 58,743 15,743
FEDERAL, STATE AND LOCAL GRANTS 32,000 336,240 305,451 (30,789)
INTEREST INCOME 4,500 4,500 2,255 (2,245)
OTHER 55,000 55,000 86,188 31,188
Total revenues 24,261,11 24,945,35 25,117,15 171,801
EXPENDITURES
EDUCATION
Board of education service
Salaries 17,000 17,357 17,356 1
Benefits 299,950 286,162 286,149 13
Contractual services 85,000 120,700 120,700 -
Materials and supplie 13,000 3,407 3,407 -
Other charges 198,000 185,323 185,323 -
612,950 612,949 612,935 14
Office of superintenden
Salaries 216,676 235,154 234,154 1,000
Benefits 92,309 84,587 84,447 140
Contractual services 12,500 4,538 4,538 -
Materials and supplie 8,500 6,506 6,433 73
Other charges 27,000 52,049 51,847 202
356,985 382,834 381,419 1,415
Budgeted Amounts
(CONTINUED ON NEXT PAGE)
The accompanying notes are an integral part of the financial statements.
35
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL PURPOSE SCHOOL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Budgeted Amounts
Office of principal
Salaries 1,280,67$ 1,324,092$ 1,316,03$ 8,054$
Benefits 355,234 334,583 266,364 68,219
Contractual services 16,000 17,626 16,251 1,375
Materials and supplie 45,000 42,515 24,764 17,751
Other charges 25,250 26,110 15,420 10,690
1,722,16 1,744,92 1,638,83 106,089
Regular instruction
Salaries 9,321,071 9,175,77 9,173,89 1,883
Benefits 2,928,63 2,874,94 2,402,30 472,639
Contractual services 185,000 207,892 173,979 33,913
Materials and supplie 802,200 1,206,092 1,058,01 148,079
Other charges 10,000 13,717 12,869 848
13,236,901 13,464,70 12,808,19 656,514
Other/Bonus Pa
Salaries 463,578 731,940 639,808 92,132
Benefits 77,687 106,231 75,108 31,123
541,265 838,171 714,916 123,255
Special education
Salaries 1,527,752 1,539,97 1,470,00 69,967
Benefits 527,483 546,519 386,747 159,772
Contractual services 70,000 129,999 105,669 24,330
Materials and supplie 60,900 60,900 34,480 26,420
Other charges 450 450 - 450
2,186,58 2,277,84 1,996,90 280,939
Other student suppor
Salaries 645,238 652,968 640,780 12,188
Benefits 196,931 198,588 167,011 31,577
Materials and supplie 12,000 12,000 4,702 7,298
Other charges 22,500 22,500 5,167 17,333
876,669 886,056 817,660 68,396
Regular instruction suppor
Salaries 480,202 538,718 535,956 2,762
Benefits 154,744 161,227 156,581 4,646
Materials and supplie 19,500 19,500 11,654 7,846
Other charges 18,000 18,000 274 17,726
672,446 737,445 704,465 32,980
(CONTINUED ON NEXT PAGE)
The accompanying notes are an integral part of the financial statements.
36
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL PURPOSE SCHOOL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Budgeted Amounts
Special education suppor
Salaries 305,750$ 305,750$ 296,644$ 9,106$
Benefits 115,307 115,307 63,322 51,985
Contractual services 30,000 46,000 45,602 398
Materials and supplie 2,000 2,000 1,180 820
Other charges 4,000 4,000 1,974 2,026
457,057 473,057 408,722 64,335
Technolog
Salaries 247,045 281,220 256,014 25,206
Benefits 73,133 78,933 59,858 19,075
Contractual services 102,500 102,461 99,411 3,050
Materials and supplie 100,000 104,202 74,001 30,201
Other charges 172,200 168,037 122,500 45,537
694,878 734,853 611,784 123,069
Fiscal services
Salaries 158,877 158,877 158,877 -
Benefits 53,098 53,098 43,376 9,722
Contractual services 100,838 98,617 71,631 26,986
Materials and supplie 5,000 4,196 1,210 2,986
Other charges 11,500 14,525 14,055 470
329,313 329,313 289,149 40,164
Human resources
Salaries 158,940 223,885 185,178 38,707
Benefits 67,464 75,979 52,777 23,202
Contractual services 30,000 28,501 13,897 14,604
Materials and supplie 10,000 12,980 11,620 1,360
Other charges 8,500 8,019 8,009 10
274,904 349,364 271,481 77,883
Student services
Salaries 69,436 88,636 74,764 13,872
Benefits 17,700 17,700 - 17,700
87,136 106,336 74,764 31,572
Health services
Salaries 203,372 178,077 174,530 3,547
Benefits 60,332 72,692 34,871 37,821
Contractual services 6,000 3,667 1,535 2,132
Materials and supplie 5,250 5,250 3,459 1,791
Other charges 4,500 6,833 2,836 3,997
279,454 266,519 217,231 49,288
(CONTINUED ON NEXT PAGE)
The accompanying notes are an integral part of the financial statements.
37
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL PURPOSE SCHOOL FUND
For the Year Ended June 30, 2024
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Budgeted Amounts
Operation of plan
Salaries 768,192$ 756,610$ 630,165$ 126,445$
Benefits 160,915 166,949 132,153 34,796
Contractual services 108,000 102,492 71,097 31,395
Materials and supplie 75,500 90,564 69,353 21,211
Other charges 392,126 527,070 501,446 25,624
1,504,73 1,643,68 1,404,21 239,471
Maintenance of plan
Benefits 32,372 15,145 15,145 -
Contractual services 215,000 426,821 420,804 6,017
Materials and supplie 96,500 123,262 118,967 4,295
343,872 565,228 554,916 10,312
Transportation
Contractual services 650,000 944,000 851,772 92,228
Materials and supplie - 1,000 (306) 1,306
650,000 945,000 851,466 93,534
Cafeteria
Salaries - 6,781 3,433 3,348
Benefits - 1,217 370 847
Materials and supplie - 18,150 15,805 2,345
- 26,148 19,608 6,540
Total education 24,837,30 26,398,14 24,391,531 2,006,61
CAPITAL OUTLA 164,400 80,046 79,718 328
Total expenditures 25,001,70 26,478,19 24,471,24 2,006,94
Excess (deficiency) of reveneus
over (under) expenditures (740,598) (1,532,842 645,905 2,178,74
OTHER FINANCING SOURCES (USES)
Transfers in 740,595 740,595 740,595 -
Transfers out (3,663,790 (663,790) (663,790) -
Total other financing sources (uses (2,923,195 76,805 76,805 -
Net change in fund balance (3,663,793$ (1,456,037$ 722,710 2,178,74$
Fund balances - beginnin 6,326,92
Fund balances - endin 7,049,63$
The accompanying notes are an integral part of the financial statements.
38
CITY OF LAKELAND, TENNESSEE
STATEMENT OF NET POSITION
PROPRIETARY FUND
June 30, 2024
Enterprise
Fund
Sewer Fund
ASSETS
Current assets:
Cash and cash equivalents 816,532$
Receivables
Other 1,721
Due from other governments 490,605
Total current assets 1,308,858
Noncurrent assets:
Capital assets, not being depreciated 12,307,925
Capital assets, being depreciated, net 13,281,568
Total capital assets, net 25,589,493
Total assets 26,898,351
DEFERRED OUTFLOWS OF RESOURCES
Related to pension 26,510
LIABILITIES
Current liabilities:
Accounts payable and other accruals 5,214,017
Accrued payroll 49,238
Due to other funds 1,024,354
Current portion of notes payable 688,000
Total current liabilities 6,975,609
Noncurrent liabilities:
Notes payable, net of current portion 5,758,702
Net pension liability 28,464
Total noncurrent liabilities 5,787,166
Total liabilities 12,762,775
DEFERRED INFLOWS OF RESOURCES
Related to pension 906
NET POSITION
Net investment in capital assets 14,897,423
Unrestricted (736,243)
Total net position 14,161,180$
The accompanying notes are an integral part of the financial statements.
39
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended June 30, 2024
Enterprise
Fund
Sewer Fund
Operating Revenues:
Sewer service fee 2,218,252$
Service connections fees 203,950
Other 5,339
Total operating revenues 2,427,541
Operating Expenses:
Salaries 437,656
Benefits 176,566
Materials and supplies 179,342
Utilities 141,779
Professional services 449,092
Other services and charges 84,683
MLGW collection fees 47,361
Depreciation 592,979
Total operating expenses 2,109,458
Operating income 318,083
Nonoperating Revenues (Expenses):
Interest 5,417
Bond interest and fiscal charges (137,299)
Total nonoperating expenses (131,882)
Income (loss) before contributions and transfers 186,201
Federal grant contributions 61,372
Change in net position 247,573
Total net position - beginning 13,913,607
Total net position - ending 14,161,180$
The accompanying notes are an integral part of the financial statements.
40
CITY OF LAKELAND, TENNESSEE
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
For the Year Ended June 30, 2024
Enterprise
Fund
Sewer Fund
CASH FLOWS FROM (USED FOR) OPERATING ACTIVITIES
Receipts from customers and users 2,077,849$
Payments to suppliers 3,532,298
Payments to employees (598,639)
Other receipts 5,339
Net cash provided by operating activities 5,016,847
CASH FLOW USED FOR NONCAPITA
FINANCING ACTIVITIES
Payment from other funds 1,024,354
Receipts from grantors 61,372
Net cash provided by noncapital financing activities 1,024,354
CASH FLOW FROM (USED FOR) CAPITAL AN
RELATED FINANCING ACTIVITIE
Purchases of capital assets (10,545,812)
Proceeds from issuance of capital debt 5,042,702
Principal paid on capital debt (661,000)
Interest paid on capital debt (137,299)
Net cash used for capital and related financing activities (6,301,409)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 5,417
Net decrease in cash and cash equivalents (193,419)
Cash and cash equivalents - beginning of the year 1,009,951
Cash and cash equivalents - end of the yea 816,532$
Reconciliation of operating income to net cash
from operating activities:
Operating income 318,083$
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Depreciation 592,979
Pension expense in excess of employer contributions 9,423
Change in assets and liabilities
Receivables (344,353)
Accounts payable 4,434,555
Accrued payroll 6,160
Net cash provided by operating activitie 5,016,847$
The accompanying notes are an integral part of the financial statements.
41
CITY OF LAKELAND, TENNESSEE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUND
June 30, 2024
OPEB
Trust Fund
ASSETS
Cash and cash equivalents 31,992$
Investments
Equity exchange traded funds 383,389
Equity mutual funds 1,322,633
Fixed income mutual funds 1,467,059
Structured investments 204,645
Total investments 3,377,726
Total assets 3,409,718$
NET POSITION
Restricted for OPEB 3,409,718$
The accompanying notes are an integral part of the financial statements.
42
CITY OF LAKELAND, TENNESSEE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
For the Year Ended June 30, 2024
OPEB
Trust Fund
ADDITIONS
Contributions
Employer 242,153$
Implicit subsidy 54,529
Total contributions 296,682
Investment earnings (losses):
Interest and dividends 116,202
Net appreciation in fair value of investments 239,996
Total investment earnings 356,198
Total additions 652,880
DEDUCTIONS
Premiums 146,682
Administrative expense 12,812
Total deductions 159,494
Change in net position 493,386
Net position - beginning of the year 2,916,332
Net position - end of the yea 3,409,718$
The accompanying notes are an integral part of the financial statements.
43
CITY OF LAKELAND, TENNESSEE
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
44
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Lakeland, Tennessee (City) was incorporated in 1977 and operates under a City Manager-Commissioners
form of government.
The Lakeland School System (Board of Education or Schools) was created in 2013 and began operation in August
2014. The Board of Education operates under the City Charter and is a legally separate entity. The Board of
Education is considered a part of the City reporting entity. The City provides funding, approves the School’s operating
budget, and issues long-term debt, such as bonds and notes payable, to provide the financing for the acquisition and
construction of the School’s facilities. The Board of Education’s funds include the General Purpose Fund, Federal
Projects Fund, Nutrition Fund, Discretionary Grants Fund, Lakeland Extended Activities Program (LEAP) Fund,
Internal School Fund, and the Capital Projects Fund. The Board of Education does not issue separate financial
statements.
As required by accounting principles generally accepted in the United States of America, these financial statements
present the government and its component units, entities for which the government is financially accountable.
Blended component units, although legally separate entities, are in substance, part of a government’s operations.
The City has no blended or discretely presented component units. The significant accounting policies followed by
the component unit are generally the same as those followed by the primary government.
Fiduciary Component Unit – The Board of Education’s Other Postemployment Benefit (OPEB) Trust Fund represents
a fiduciary component unit of the City. The trust fund is a legally separate entity, and the resources of the trust fund
cannot be used to finance the School’s operations. The School is committed to making contributions to the trust, and
therefore assumes a financial burden for the trust fund and thus has financial accountability.
B. Basis of Presentation
1. Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the nonfiduciary activities of the primary government and are designed to provide readers with a
broad overview of the City’s finances, in a manner similar to private-sector business. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support. Certain eliminations have been made
regarding interfund activities, payables, and receivables. All internal balances in the statement of net position have
been eliminated except those representing balances between the governmental activities and business-type
activities, which are presented as internal balances and eliminated in the total primary government column. In the
statement of activities, those transactions between governmental and business-type activities have not been
eliminated.
The statement of net position presents information on all the City’s assets, deferred outflows of resources, liabilities,
and deferred inflows of resources, with the differences presented as net position. Net position is reported as one of
three categories: net investment in capital assets, restricted, or unrestricted. Restricted net position is further
classified as either net position restricted by enabling legislation or net position that is otherwise restricted.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other items not
properly included among program revenues are reported instead as general revenues.
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Fund Financial Statements
Separate financial statements are provided for governmental funds, the proprietary fund, and the fiduciary fund, even
though the latter is excluded from the government-wide financial statements. The activities of the government are
organized into funds, each of which are separate accounting entities. Each fund is accounted for by providing a set
of self-balancing accounts which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of
resources, fund balance/net position, revenues, and expenditures/expenses. Major individual governmental funds
and major individual enterprise funds are reported as separate columns in the fund financial statements.
The City has presented all major funds that met the quantitative or qualitative criteria to be reported as a major fund
as separate columns in the fund financial statements. The City’s major funds are as follows:
Major Governmental Funds: General Fund and General Purpose School Fund.
Major Proprietary Funds: Sewer Fund
Detailed descriptions of these funds are presented below.
3. Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and statement of revenues, expenditures, and
changes in fund balance individually for all major funds and in the aggregate for the remaining nonmajor funds. An
accompanying schedule is presented to reconcile and explain the difference in fund balance and changes in fund
balances as presented in these statements to net position and changes in net position presented in the government-
wide financial statements. The governmental funds of the City are described below:
a. General Fund – The primary operating fund of the City and accounts for all financial resources of the general
government not specifically provided for in other funds. Most of the essential governmental services such as
general administration, community services, and public works are reported in the general fund.
b. Special Revenue Funds – These funds are used to account for the proceeds of specific revenue sources
(other than special assessments, expendable trusts, or major capital projects) that are legally restricted or
committed to expenditures for specific purposes. The special revenue funds include the State Street Aid
Fund, Storm Water Fund, Solid Waste Control Fund, School Federal Projects Fund, School Nutrition Fund,
School Discretionary Grants Fund, Lakeland Extended Activities Program (LEAP) Fund, and Internal School
Fund. The special revenue funds also include the General Purpose School Fund which is described in further
detail below:
General Purpose School Fund – The operating fund of the Lakeland School System and accounts for all
general revenues and other receipts that are not allocated by law or contractual agreement to another
Lakeland School System fund, such as property tax revenue from Shelby County, Tennessee, Tennessee
Investment in Student Achievement (TISA) funds, sales tax, etc. General operating expenditures and
capital improvement costs that are not paid through other School funds are paid from the General Purpose
School Fund.
c. School Capital Projects Fund – This fund accounts for the School’s financing of major capital improvement
projects and capital asset purchases.
d. Debt Service Fund – The fund accounts for the resources accumulated and payments made for principal
and interest on long-term general obligation debt of governmental funds.
46
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4. Proprietary Fund Financial Statements
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses, and
changes in net position, and a statement of cash flows. The proprietary fund of the City is described below:
a. Enterprise Fund – Accounts for business-like activities provided to the public. The activities are financed
primarily by user charges and the measurement of the financial activity focuses on net income measurement
like private sector businesses.
Sewer Fund – Accounts for sewer fees in connection with the operation of the City's sewer system. The
proceeds of loans in this fund have been used specifically for the construction or acquisition of sewer
systems and facilities. Since it is the intention of the City to repay these loans through sewer fund
operations, these obligations are reported in this fund.
5. Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of fiduciary net position and statement of changes in fiduciary
net position. Fiduciary fund balances and activities are excluded from the government-wide financial statements as
they do not represent amounts available to the primary government.
a. Other Postemployment Benefit (OPEB) Trust Fund – The School’s OPEB trust fund accounts for the
activities and accumulation of resources related to retiree group health and dental benefits that are required
to be held in trust for the members and beneficiaries of other postemployment benefit plans.
C. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe “which” transactions are recorded within the various financial
statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus
applied.
Measurement Focus
On the government-wide statement of net position and statement of activities, both governmental and business-type
activities are presented using the “economic resources” measurement focus. Accordingly, all the City’s assets and
liabilities, including capital assets and long-term liabilities, along with deferred inflows and outflows of resources, are
included in the accompanying statement of net position. The statement of activities presents changes in net position.
Proprietary funds and fiduciary funds are also accounted for using the “economic resources” measurement focus.
Accordingly, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current
or noncurrent) are included in the statement of net position. The statement of revenues, expenses, and changes in
net position presents revenues (additions) and expenses (deductions) in total net position.
All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets,
deferred outflows of resources, liabilities, and deferred inflows of resources are generally included on their balance
sheets. Their operating statements present sources and uses of available resources during a given period. These
funds use fund balance as their measure of available resources at the end of the period.
Basis of Accounting
The government-wide financial statements are presented using the accrual basis of accounting, as are the proprietary
fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Amounts reported as program revenues include 1) charges to customers or applicants
for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by
the provider have been met. Unearned revenue arises when assets are recognized before revenue recognition
47
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
criteria have been satisfied. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
Basis of Accounting
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the sewer fund are charges to customers
for sales and services. The sewer fund also recognizes as operating revenue the portion of tap fees intended to
recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the
cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
Revenues in the fiduciary fund are those additions to the plan that are generated from contributions from the City or
School and participants and investment related income. Expenses are those deductions to the assets of the plan that
arise from the payment of benefits and administrative expenses.
Governmental fund financial statements are reported using the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available to finance expenditures of the current period.
Revenues are available when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the City considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible
to accrual by the City, are property taxes, other local taxes, and intergovernmental revenues. Licenses and permits,
charges for services, fines and forfeitures, and miscellaneous revenues are measurable and available only when
cash is received by the City. Expenditure-driven grants are recognized as revenue when the qualifying expenditures
have been incurred and all other eligibility requirements have been met, and the amount is received during the period
or within the availability period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due. The issuance of long-term debt and financing through
leases and SBITA are reported as other financing sources.
D - Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balances
1. Deposits and investments
The City considers all highly liquid investments with an original maturity of three months or less when purchased to
be cash and cash equivalents. Cash equivalents held by the trustee of the School OPEB Fund are included in cash
and cash equivalents. Cash equivalents also include investments in the Local Government Investment Pool (LGIP)
due to the short-term nature of their maturity.
Investments, including other postemployment benefit investments held in fiduciary funds, are reported at fair value
except for those investments in the LGIP. The LGIP qualifies as a 2a7-like pool and is reported at amortized cost
using a Stable Net Asset Value which approximates fair value.
Restricted investments consist of assets held in an irrevocable trust for future TCRS pension benefits.
2. Receivables
All trade and property taxes receivable are shown net of an allowance for uncollectible amounts.
Real and personal property taxes are levied by July 1 for each fiscal year on values assessed as of the prior January
1, the date the City has an enforceable legal claim. Property taxes are due on December 1 and are considered
delinquent after February 28, at which time penalties and interest are assessed and property is available tax lien.
48
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property taxes receivable are recognized as of the date the City has an enforceable legal claim. Property taxes are
reflected as revenues in the fiscal period for which they are levied, which is the subsequent fiscal year for the current
fiscal year’s assessment, provided they are received and collected within the current period or within 60 days following
the fiscal year end (August 29). Since the receivable is recognized before the period of revenue recognition, the
entire amount of the receivable, less an estimated allowance for uncollectible taxes, is reported as a deferred inflow
of resources as of June 30. Delinquent taxes estimated to be collected subsequent to August 29 are included in the
balance sheet as property taxes receivable and a deferred inflow of resources to reflect amounts that were not
available as revenues at June 30, 2024. The property tax levy is without legal limit. The rate, as permitted by
Tennessee State Law and City Charter, is set annually by the Board of Commissioners.
The Board of Education recognizes its share of real and personal property taxes, sales taxes, and other local taxes
as revenue in the fiscal year collected by the State of Tennessee, Shelby County, or the City, as applicable. The
Board of Education does not have any taxing authority. Consequently, the Schools rely on a share of real and
personal property taxes collected by the Shelby County. The Shelby County tax levy of $3.39 per $100 of assessed
value includes $1.60 for both the county schools and the municipal schools of Shelby County. Distribution of the
$1.60 to the county schools and the municipal school districts is based on the average daily attendance of each
system. Approximately 76% and 24% was distributed to Shelby County Schools and the municipal school districts
of Shelby County, respectively.
Receivables due from other governments are primarily from the United States government, the State of Tennessee,
and Shelby County, Tennessee. No allowance for uncollectable amounts has been recognized.
Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in
connection with resources that have been received, but not yet earned as “unearned revenue.” At the end of the
current fiscal year, unavailable revenue principally represents amounts relating to property taxes and grants.
3. Interfund transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances
to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds
are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities
and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account
in applicable governmental funds to indicate that they are not available for appropriation and are not expendable
available financial resources.
Permanent reallocations of resources between funds of the City are classified as interfund transfers. For the
statement of activities, all transfers between individual governmental funds have been eliminated.
4. Inventories and prepaid items
Inventories consist of expendable supplies and is presented at cost. Inventory is charged to operations using average
cost. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both government-wide and fund financial statements. The cost of inventory and prepaid items is recorded as
expenditures/ expenses when consumed rather than when purchased.
5. Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., streets, bridges, sidewalks,
and similar items), are reported in the applicable governmental or business-type activities columns in the government-
wide financial statements. Such assets with an initial, individual cost of more than $5,000 and an estimated useful
life more than two years are recorded at historical cost or estimated historical cost if purchased or constructed.
Contributed capital assets are recorded at estimated acquisition value at the date received. Major outlays for capital
49
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
assets and improvements are capitalized as projects are constructed. 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.
Land, easements, rights-of-way, and construction in progress are not depreciated. All other capital assets are
depreciated using the straight-line method over the following estimated useful lives:
Buildin s and improvements 15-40 ears
Other improvements 20 ears
Machiner and equipmen 5 ears
Vehicles 5 ears
Infrastructure
Ri ht-to-use-assets
30 years
3-7 ears
6. Right-of-use capital assets and related liabilities
Right-of-use lease assets are recorded at an amount equal to the initial measurement of the related lease liability
plus lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to
place the lease into service. Right-of-use subscription-based IT arrangements (SBITA) are recorded at an amount
equal to the initially measurement of the related SBITA liability, plus payments made prior to the SBITA term, and
plus capitalizable implementation costs. The right-of-use assets are amortized on a straight-line basis over the life of
the related lease term or SBITA term.
Lease and SBITA liabilities are initially measured at the present value of payments expected to be made during the
term of the related agreements. Subsequently, the liabilities are reduced by the principal portion of the payments
made. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by
lessor is not determinable, the City uses its estimated incremental borrowing rate as the discount rate for the liabilities.
The lease or SBITA term includes the noncancellable period of the lease including renewal periods reasonably certain
to be exercised and termination options reasonably certain not to be exercised.
7. Deferred outflows of resources
Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense) until then. The City has qualifying items for reporting in this
category. Deferred outflows of resources include those related to pension and other postemployment benefits.
8. Compensated absences
Compensated absences for accumulated unpaid vacation and sick time are accrued when incurred in the
government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental
funds only if they have matured, for example, as a result of employee resignations and retirements. Vacation hours
earned may be accrued depending on years of service and subject to maximums ranging from 160 – 200 hours. Sick
time may be converted to vacation time at the time of termination for a maximum combined payout of 240 hours.
Compensated absences are paid out of the general fund, the general purpose school fund, LEAP fund, state street
aid fund, solid waste fund, storm water fund, and the sewer fund.
9. Long-term obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-
type activities, or proprietary fund type statement of net position. Premiums and discounts are deferred and amortized
over the life of the associated debt using the effective interest method. Debt is reported net of the applicable premium
or discount. Debt issuance costs are expensed when incurred.
50
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In the governmental fund financial statements, debt premiums and discounts, as well as issuance costs are
recognized in the current period. The face amount of debt is reported as other financing sources in the period
received. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether paid or withheld from the actual debt
proceeds received, are reported as debt service expenditures.
10. Deferred inflows of resources
Deferred inflows of resources represent an acquisition of net assets that applies to a future period and is not
recognized as an inflow of resources (revenue) until that time. The City has qualifying items for reporting in this
category. Unavailable revenues from property taxes are amounts in the governmental funds that were receivable
and measurable at year-end but were not available to finance expenditures for the current year. Deferred inflows of
resources also include those related to pensions and other postemployment benefits. In addition, the unamortized
gain on refunding reported in the government-wide statement of net position results from the difference in the carrying
value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life
of the refunded or refunding debt.
11. Net position and fund balance
In the government-wide financial statements and the proprietary fund in the fund financial statements, equity is
classified as net position and displayed in three components:
Net investment in capital assets – consists of capital assets, including restricted capital assets, net of
accumulated depreciation and reduced by the outstanding balances of any notes or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets. Applicable deferred outflows of
resources and deferred inflows of resources, if any, should be included in the component of net position.
Restricted net position – consists of net position with constraints placed on the use either by (1) external groups
such as creditors, grantors, contributors, or laws or regulations of other governments or (2) law through
constitutional provisions or enabling legislations.
Unrestricted net position – all other net position that does not meet the definition of restricted or net investment
in capital assets.
When an expense is incurred for purposes for which both restricted and unrestricted amounts are available, it is the
City’s policy to reduce restricted amounts first.
In the fund financial statements, governmental funds report fund balances in classifications that comprise a hierarchy
based primarily on the extent to which the government is bound to honor constraints on the specific purposes for
which amounts in these funds can be spent. These classifications consist of the following five components, as
applicable:
Nonspendable – amounts that cannot be spent because they are either (a) in a non-spendable form, including
items not expected to be converted to cash (i.e. inventories, prepaid amounts, long-term portion of loans and
notes receivable), or (b) legally or contractually required to be maintained intact (i.e. the principal of a permanent
fund).
Restricted – amounts constrained to be used for a specific purpose as per external parties, constitutional
provision, or enabling legislation.
Committed – amounts constrained to be used for specific purposes by formal action (ordinance) adopted by the
Board of Commissioners. Amounts classified as committed are not subject to legal enforceability like restricted
resources; however, they cannot be used for any other purpose unless the Board removes or changes the
commitment by taking the same action it employed to impose the commitment.
51
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assigned – amounts intended to be used by the City for a specific purpose but are neither restricted nor
committed. The intent shall be expressed by the Board of Commissioners, or a designee authorized by the Board
of Commissioners, with authority to assign amounts. The nature of the actions necessary to remove or modify an
assignment is not as rigid as required under a committed fund balance classification. The Mayor and City
Manager have been authorized to assign amounts in the general fund for a specific purpose in accordance with
fund balance policy established by the Board of Commissioners. Amounts in excess of nonspendable, restricted,
and committed fund balance in funds other than the general fund are reported as assigned fund balance.
Unassigned – represents the residual balance available for any purpose in the general fund. In other
governmental funds, the classification is used only to report a deficit balance resulting from overspending for
specific purposes for which amounts had been restricted, committed, or assigned. All funds in this category are
considered spendable resources. This category also provides the resources necessary to meet unexpected
expenditures and revenue shortfalls.
When an expenditure is incurred for purposes for which both restricted, committed, assigned, or unassigned amounts
are available, it is the policy of the City to expend any available restricted, committed, or assigned resources, in that
order, prior to expending unassigned resources.
The City has determined that the unassigned general fund balance will remain at a level equal to 25 percent of
recurring general fund revenues, plus $1,100,000 associated with cash flow management and protecting against
exposure to variable rate debt. If fund balance is depleted below the level established by this policy, the City Manager,
with consultation from the Finance Director, will develop a plan to replenish the fund balance. The plan will require
the approval of the Board of Commissioners and will include recommendations for rate, fee, or revenue adjustments
as well as expenditure reductions, as necessary. The plan will also be reviewed and modified on an annual basis
until the fund balance policy level is achieved.
12. Pensions and Other Postemployment Benefits
The City maintains three defined benefit retirement plans sponsored by Tennessee Consolidated Retirement System
and one defined benefit other postemployment benefit plan (OPEB) sponsored by the City.
For purposes of measuring the net pension and net OPEB assets or liabilities, deferred outflows of resources and
deferred inflows of resources related to pensions and OPEB, and pension and OPEB expense, information about the
fiduciary net position, and additions to/deductions from each plan’s fiduciary net position have been determined on
the same basis as they are reported by the actuaries. For this purpose, benefits (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms of each plan. Expenses of
the plans, such as investment fees, trustee fees, and audit fees, are paid by the plans. However, certain
administrative functions are performed by employees of the City and are not reimbursed by the plans. Investments,
other than contracts, are reported at fair value. Investment income is recognized as earned. Plan assets do not
include any securities of the City nor have any of the plans made any loans to the City.
13. Fair Value Measurements
Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants. Assets and liabilities recorded at fair value in the statements of net position
are categorized based on the level of judgment associated with the inputs used to measure their value. The three
categories of level inputs are as follows: Level 1 inputs include unadjusted quoted prices in active markets for identical
assets or liabilities accessible at the measurement date; Level 2 inputs include quoted prices for similar assets or
liabilities; quoted prices for identical or similar assets or liabilities in inactive markets; or other inputs that can be
corroborated by observable market data. Such inputs include market interest rates and volatilities, spreads and yield
curves; Level 3 inputs are inputs which are unobservable for the asset or liability and rely on management’s own
assumptions that market participants would use in pricing the asset or liability. Investments using the Net Asset Value
(“NAV”) per share have no readily determinable fair value and have been determined using amortized cost which
approximates fair value.
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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement. In determining fair value, the City utilizes valuation
techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent
possible. The methods used may produce a fair value calculation that may not be indicative of net realizable value
or reflective of future fair values. Furthermore, while the City believes its valuation methods are appropriate and
consistent with other market participants, the use of different methodologies or assumptions to determine the fair
value of certain financial instruments could result in a different fair value measurement at reporting date.
14. 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 revenues and expenses during the reporting period. Actual results could differ from those
estimates.
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary information
The Board of Commissioners annually approves the operating budgets of the general, special revenue, capital
projects, debt service, and sewer funds of the City. Capital projects are approved as part of a five-year capital
improvements plan (CIP). The total budgets of these funds constitute legal spending limits, requiring ordinance
amendment. Transfers within the funds are authorized by the Board of Commissioners in the budget ordinance but
must be presented to the Board of Commissioners at the next scheduled meeting. The Lakeland School Board of
Education annually approves the operating budgets of each of school funds, except for the Internal School Fund,
which is not required to, and does not, adopt an annual budget. The Board of Commissioners then approves the
Lakeland School System budget. Annual budgets are adopted on a basis consistent with Tennessee Code
Annotated, which is not materially different than the modified accrual basis of accounting.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts)
outstanding at year end are reported in the fund balance categories of their related ultimate expenditure and do not
constitute expenditures or liabilities because the commitments will be reappropriated and honored during the
subsequent year.
B. Excess of expenditures over appropriations
For the year ended June 30, 2024, no expenditures exceeded appropriations.
C. Deficit fund equity
As of June 30, 2024, the Solid Waste Fund and School Federal Projects Fund had deficit fund balances of $62,706,
and $188,089, respectively, due to timing of expenses and reimbursements.
53
NOTE 3 – DEPOSITS
Legal Provisions
Deposits must be collateralized by federal depository insurance, the Tennessee Bank Collateral Pool, collateral held
by the City’s agent in the City’s name, collateral held by the Federal Reserve Banks acting as third party agents, or
a combination of these methods. State statute requires that all uninsured deposits with financial institutions must be
collateralized by securities whose fair value is equal to 105% of the average daily balance of public deposits held.
Collateral securities required to be pledged by the participating banks to protect their public fund accounts are pledged
to the state treasurer on behalf of the bank collateral pool. The securities pledged to protect these accounts are
pledged in the aggregate rather than against each account. The members of the pool may be required by agreement
to pay an assessment to cover any deficiency. Under this additional assessment agreement, public fund accounts
covered by the pool are insured for purposes of credit risk disclosure.
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The
City’s policy for custodial risk is to follow state guidelines. As of June 30, 2024, all bank deposits were entirely insured
by federal depository insurance and collateralized by the Bank Collateral Pool of the State of Tennessee.
Restricted Cash and Cash Equivalents
Restricted cash in the school capital projects fund represent deposits in the LGIP that are restricted for school capital
projects.
NOTE 4 – INVESTMENTS
Legal Provisions
Investments are limited to those authorized by Tennessee State Law. State statutes authorize the City to make direct
investments in in bonds, notes or treasury bills of the U.S. government and obligations guaranteed by the U.S.
government or any of its agencies; deposit accounts at state and federal chartered banks and savings and loan
associations; repurchase agreements; the Tennessee Local Government Investment Pool (LGIP); bonds of any state
or political subdivision rated A or higher by any nationally recognized rating service; and nonconvertible debt
securities of certain federal government sponsored enterprises. Statutes also require that securities underlying
repurchase agreements must have a fair value at least equal to the amount of funds invested in the repurchase
transaction. State statutes limit maturities of the above investments to four years from the date of investment unless
a greater maturity is approved by the State Director of Finance.
The School is a member of the Tennessee Consolidated Retirement System (TCRS) Stabilization Reserve Trust.
The School has placed funds into the irrevocable trust as authorized by statute under Tennessee Code Annotated,
Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of
the trust. Funds of trust members are held and invested in the name of the trust for the benefit of each member.
Each member’s funds are restricted for the payment of retirement benefits of that member’s employees. Trust funds
are not subject to the claims of general creditors of the School or City. The trust is authorized to make investments
as directed by the TCRS Board of Trustees. The School may not impose restrictions on investments placed by the
trust on their behalf.
In addition to investments allowed by the School, the fiduciary fund’s investment policies authorize investments in
mutual funds, common stocks, and other equities. The investment policies of the fiduciary funds have been formally
adopted by the City’s Board of Commissioners.
A. Primary Government Investments
The LGIP represents 100% of the primary government’s investments at June 30, 2024. These investments are
reported at amortized cost which approximates fair value and are included as cash equivalents. The LGIP uses
amortized costs rather than fair value to report net position to compute share prices. The LGIP maintains a weighted
average maturity of 60 days or less.
54
NOTE 4 – INVESTMENTS (CONTINUED)
B. Restricted Investments – TCRS Stabilization Reserve Trust
Assets of the TCRS, including the Stabilization Reserve Trust, are invested in the Tennessee Retiree Group Trust
(TRGT). The TRGT is not registered with the Securities and Exchange Commission (SEC) as an investment
company. The State of Tennessee has not obtained a credit quality rating for the TRGT from a nationally recognized
credit ratings agency. The fair value of investment positions in the TRGT is determined daily based on the fair value
of the pool’s underlying portfolio. Furthermore, TCRS had not obtained or provided any legally binding guarantees to
support the value of participant shares during the fiscal year. There are no restrictions on the sale or redemption of
shares. For further information concerning the School’s investments with the TCRS Stabilization Reserve Trust, as
well as the audited financial statements of the TCRS, please refer to https://treasury.tn.gov/Retirement/Boards-and-
Governance/Reporting-and-Investment-Policies.
The following table summarizes fair value disclosures and measurements for the School’s investments held by the
TRGT on its behalf as of June 30, 2024:
Investments at Fair Value Total Level 1 Level 2 Level 3
U.S. equity 93,839$ 93,839$ -$ -$
Developed market international equity 42,379 42,379 - -
Emerging market international equity 12,108 12,108 - -
U.S. fixed income 60,541 - 60,541 -
Short-term securities 3,027 - 3,027 -
Real estate 30,271 - - 30,271
242,165 148,326$ 63,568$ 30,271$
Investments at amortized cost using NAV
Private equity and strategic lending 60,541
Total restricted investments 302,706$
C. Fiduciary Investments
The School administers one fiduciary fund, the OPEB Trust Fund, whose investments are held by a third-party trustee
bank. Additionally, the School utilizes an advisor to select appropriate investment choices. The following table
summarizes fair value disclosures and measurements for the fiduciary investments at June 30, 2024:
Investments at Fair Value Total Level 1 Level 2 Level 3
Fiduciary Activities:
Equity exchange traded funds 383,389$ 383,389$ -$ -$
Equity mutual funds 1,322,633 1,322,633 - -
Fixed income mutual funds 1,467,059 1,467,059 - -
Structured Investments 204,645 - - 204,645
3,377,726$ 3,173,081$ -$ 204,645$
The following is a description of the valuation methodologies used for assets measured at fair value. There have
been no changes in the methodologies used at June 30, 2024:
Short-term securities: generally, include investments in money market-type securities reported at cost plus
accrued interest.
Equity and equity derivative securities: Level 1 are valued using last reported sales prices quoted in active
markets that can be accessed at the measurement date. Level 2 are securities whose values are derived
daily from associated traded securities. Level 3 are valued with last trade data having limited trading volume.
55
NOTE 4 – INVESTMENTS (CONTINUED)
US Treasury Bills, Bonds, Notes and Futures: Level 1 are valued using last reported sales prices quoted in
active markets that can be accessed at the measurement date. Level 2 are valued using a bid-ask spread
price from multiple independent brokers, dealers, or market principals, which are known to be actively
involved in the market. Level 3 are valued using proprietary information, a single pricing source, or other
unobservable inputs related to similar assets or liabilities.
Real estate investments: Level 3 are valued using the last valuations provided by external investment
advisors or independent external appraisers. Generally, all direct real estate investments are appraised by a
qualified independent appraiser(s) with the professional designation of Member of the Appraisal Institute
(“MAI”), or its equivalent, every three (3) years beginning from the acquisition date of the property. The
appraisals are performed using generally accepted valuation approaches applicable to the property type.
Private mutual funds, traditional private equity funds, strategic lending funds and real estate funds: Those
funds that report using GAAP, the fair value, as well as the unfunded commitments, were determined using
the prior quarter’s NAV, as reported by the fund managers, plus the current cash flows. These assets were
then categorized by investment strategy. In instances where the fund investment reported using non-GAAP
standards, the investment was valued using the same method, but was classified in Level 3.
Risks and Uncertainties – The fiduciary fund trust’s and TRGT’s investments include various types of investment
funds, which in turn invest in any combination of stock, bonds and other investments exposed to various risks, such
as interest rate, credit, and market risk. Due to the level of risk associated with certain investment securities, it is at
least reasonably possible that changes in the values of investment securities will occur in the near term and that such
changes could materially affect the amounts reported for trust investments.
Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The School does not have the ability to limit TRGT investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The City and School manages its exposure to
declines in fair value by structuring the investment portfolio so that securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. The City and
School invest operating funds primarily in short-term securities or the LGIP and limits the average maturity of the
portfolio to those established by TCA 6-5-106 for commercial paper and repurchase agreements and four years for
investments in securities of the U.S. Treasury, Federal Government sponsored agencies, or certificates of deposit.
Concentration of Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill
its obligations. Concentration of credit risk is the risk of loss attributed to the magnitude of the investment in a single
issuer. The School does not have the ability to limit the credit ratings of individual investments made by the trust. The
School places no limit on the amount the TRGT may invest in one issuer. The City and School have adopted the
investment policy established by TCA 6-5-106 for investments other than those held for Pension and OPEB benefits.
The School diversifies its fiduciary fund investment portfolios so that the impact of potential losses from any one type
of security or from any one individual issuer will be minimized. The School had no investments that comprised more
than 5% of its total investments at June 30, 2024.
Custodial Credit Risk – Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty
to a transaction, the county will not be able to recover the value of its investments or collateral securities that are in
the possession of an outside party. The City’s investments in the LGIP are held by the State Treasury, not in the
name of the City. The third-party bank is also a participant in the State collateral pool. Pursuant to the trust
agreements, investments are held in the TRGT and each fiduciary trust are for the benefit of the School to pay
retirement benefits of their respective employees.
56
NOTE 5 – INTERFUND TRANSACTIONS
The composition of interfund balances as of June 30, 2024, is as follows:
General Aggregate
Purpose Nonmajor
Receivable From General School Governmental Total
Major Funds
General -$ 67,613$ 4,962$ 72,575$
Sewer 1,024,354 - - 1,024,354
Aggregate Nonmajor Governmental 327,761 220,533 8,159 556,453
Total 1,352,115$ 288,146$ 13,121$ 1,653,382$
Payable To
Major Funds
These balances resulted from the time lag between the dates that the interfund goods and services are provided or
reimbursable expenditures occur and when payments between funds are made.
The composition of interfund transfers for the year ended June 30, 2024 is as follows:
General Aggregate
Purpose Nonmajor
Transfers Out School Governmental Total
Major Funds
General 740,595$ 4,687,151$ 5,427,746$
General Purpose School - 663,790 663,790
Total 740,595$ 5,350,941$ 6,091,536$
Major Funds
Transfers In
Transfers out of the major funds generally represent debt service, cost allocation, and capital project funding.
57
NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024, was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land 9,428,436$ 4,350,972$ -$ -$ 13,779,408$
Construction in progress 10,956,854 4,023,967 - (2,173,925) 12,806,896
Total capital assets, not being depreciated 20,385,290 8,374,939 - (2,173,925) 26,586,304
Capital assets, being depreciated:
Buildings and improvements 89,881,638 307,632 - 798,749 90,988,019
Other improvements 6,368,929 - - 132,450 6,501,379
Machinery and equipment 9,181,015 697,909 (14,514) 281,223 10,145,633
Vehicles 861,299 - - 8,300 869,599
Infrastructure 79,659,093 264,388 - 953,203 80,876,684
Subscription asset 80,749 741,897 - - 822,646
Total capital assets, being depreciated 186,032,723 2,011,826 (14,514) 2,173,925 190,203,960
Less accumulated depreciation for:
Buildings and improvements (8,855,813) (2,242,684) - - (11,098,497)
Other improvements (4,599,612) (139,854) - - (4,739,466)
Machinery and equipment (3,739,422) (953,485) 14,514 - (4,678,393)
Vehicles (464,399) (123,005) - - (587,404)
Infrastructure (56,947,749) (1,524,844) - - (58,472,593)
Subscription asset (26,393) (105,535) - - (131,928)
Total accumulated depreciation (74,633,388) (5,089,407) 14,514 - (79,708,281)
Total capital assets, being depreciated, net 111,399,335 (3,077,581) - 2,173,925 110,495,679
Governmental activities capital assets, net 131,784,625$ 5,297,358$ -$ -$ 137,081,983$
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-Type activities:
Capital assets, not being depreciated:
Land 75,360$ -$ -$ -$ 75,360$
Construction in progress 1,743,017 10,489,548 - - 12,232,565
Total capital assets, not being depreciated 1,818,377 10,489,548 - - 12,307,925
Capital assets, being depreciated:
Buildings and improvements 10,541,806 - - - 10,541,806
Other improvements 10,935,256 - - - 10,935,256
Machinery and equipment 1,270,798 56,264 - - 1,327,062
Total capital assets, being depreciated 22,747,860 56,264 - - 22,804,124
Less accumulated depreciation for:
Buildings and improvements (4,223,926) (255,799) - - (4,479,725)
Other improvements (4,144,500) (223,579) - - (4,368,079)
Machinery and equipment (561,151) (113,601) - - (674,752)
Total accumulated depreciation (8,929,577) (592,979) - - (9,522,556)
Total capital assets, being depreciated, net 13,818,283 (536,715) - - 13,281,568
Business-Type activities capital assets, net 15,636,660$ 9,952,833$ -$ -$ 25,589,493$
58
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to function/programs of the primary government as follows:
Governmental Activities:
General government 323,445$
Community development 50,735
Public works 1,659,659
Parks and recreation 185,105
Education 2,870,463
5,089,407$
Business-Type Activities:
Sewer 592,979$
Total depreciation expense - governmental activities
Construction and other significant commitments
The government had active construction projects as of June 30, 2024. At year end the government’s commitments
with contractors were approximately as follows:
Remaining
Project Spent-to-Date Commitment
City Construction
Clear Creek Interceptor 9,058,301$ 14,214,879$
Parks Restrooms 26,725 270,280
9,085,026$ 14,485,159$
NOTE 7 – LONG-TERM LIABILITIES
1. Long-Term Debt
General obligation and revenue bonds and notes
The City periodically issues general obligation notes for the acquisition, construction, and improvement of major
capital facilities and infrastructure. The bonds are generally issued as 15 to 40-year serial bonds. The City is not
subject to any state or other law that limits the amount of debt a City may have outstanding; therefore, there is no
legal debt margin or computation thereof. The City's full faith, credit and unlimited taxing power are pledged to the
repayment of all general obligation notes payable and interest and the City is contingently liable for the repayment of
revenue notes principal and interest. Repayment terms are generally structured with increasing amounts of principal
maturing as interest requirements decrease over the term of the debt. Certain notes contain a provision in which
amounts outstanding become immediately due on default.
In May 2022, the City entered into a loan agreement with the State Revolving Loan Fund through the Tennessee
Department of Environment and Conservation. Under the agreement, the City obtained a $15,000,000 loan at an
interest rate of 2.86%. The loan is payable in 240 monthly installments in the amount of $51,505 through maturity in
May 2042. The loan was obtained to partially finance a $24,000,000 project to replace the existing Clear Creek
Interceptor as a part of the sewer operations. As of June 30, 2024, only $5,042,702 has been drawn on the loan.
In September 2023, the City entered into a loan agreement with the State Revolving Loan Fund through the
Tennessee Department of Environment and Conservation. Under the agreement, the City obtained a $9,000,000
loan at an interest rate of 3.35%. The loan is payable in 240 monthly installments in the amount of $51,505 through
maturity in June 2044. The loan was obtained to partially finance a $24,000,000 project to replace the existing Clear
Creek Interceptor as a part of the sewer operations. As of June 30, 2024, no amounts have been drawn on the loan.
59
NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
Shelby County Settlement Obligation
In January 2014, the City and the School entered into a settlement agreement with the Board of Commissioners of
Shelby County, Shelby County, Tennessee, and the Shelby County Board of Education. The City agreed to pay the
Shelby County Board of Education twelve annual installments of $56,337. The City elected to establish the liability
incurred through the settlement agreement at its present value with a discount rate of .50%.
Debt outstanding as of June 30, 2024 consisted of the following:
Interest Maturity Original Outstanding
Rates Date Issue at Year End
Governmental activities:
Payable through Debt Service Fund
Notes from direct borrowings:
TLDA Construction Loan 1.89% 7/20/2039 1,725,000$ 1,174,437$
General Obligation Refunding Bonds, Series 2021 R1 2.125% 1/27/2061 5,194,500 4,937,918
General Obligation Refunding Bonds, Series 2021 R2 2.125% 1/27/2061 9,600,000 9,125,809
General Obligation Refunding Bonds, Series 2022 R1 2.50% 6/22/2062 9,900,000 9,602,495
General Obligation Refunding Bonds, Series 2022 R2 2.50% 6/22/2062 9,800,000 9,505,500
General Obligation Refunding Bonds, Series 2022 R3 2.50% 6/22/2062 9,700,000 9,408,505
General Obligation Refunding Bonds, Series 2022 R4 2.50% 6/22/2062 7,903,000 7,665,506
General Obligation Refunding Bonds, Series 2022 R5 2.50% 6/22/2062 7,902,500 7,665,021
61,725,000 59,085,191
Other Debt:
Shelby County Settlement Liability .50% 11/1/2025 676,044 167,603
62,401,044$ 59,252,794$
Business-Type activities:
Payable through Sewer Fund
Notes from direct borrowings:
TN Municipal League Note, Series 2005 3.98%* 5/25/2026 11,000,000$ 1,404,000$
TN State Revolving Loan 2022-476 2.86% 5/30/2042 15,000,000 5,042,702
TN State Revolving Loan 2022-476-01 3.35% 6/30/2044 9,000,000 -
35,000,000$ 6,446,702$
*Variable rate Tennessee Municipal Bond Fund loan rate for June 30, 2024 was 3.98%
60
NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
Annual debt service requirements to maturity for bonds and notes payable are as follows:
Years Ending
June 30 Principal Interest Principal Interest
2025 1,139,837$ 1,417,456$ 688,000$ 3,089$
2026 1,107,239 1,393,677 716,000 1,575
2027 1,075,798 1,368,664 - -
2028 1,099,370 1,344,997 - -
2029 1,129,198 1,315,087 - -
2030-2034 6,050,449 6,169,626 - -
2035-2039 6,802,718 5,414,911 - -
2040-2044 7,187,169 4,588,951 5,042,702 -
2045-2049 8,088,289 3,680,252 - -
2050-2054 9,108,380 2,660,154 - -
2055-2059 10,259,239 1,509,301 - -
2060-2062 6,205,108 293,321 - -
59,252,794$ 31,156,397$ 6,446,702$ 4,664$
Governmental Activities Business-Type Activities
2. Subscription-based IT arrangements (SBITA) Obligations
The City and school entered into long-term, noncancellable SBITAs. The liabilities are measured using discount rates
ranging from 2.18% to 4.56%, which is the estimated incremental borrowing rate. Terms of the agreements expire in
various years through fiscal year 2030. Amounts are payable through the general fund and education capital projects
fund.
Expense on SBITA obligations consisted for the following for the year ended June 30, 2024:
Amortization expense - subscription assets 105,535$
Interest on subscription lease liabilities 2,580
Total 108,115$
Annual debt service requirements to maturity for the SBITA obligations are as follows:
Years Ending
June 30 Principal Interest Total
2025 141,776$ 14,724$ 156,500$
2026 117,494 11,506 129,000
2027 91,720 8,280 100,000
2028 93,723 6,276 99,999
2029 95,770 4,230 100,000
2030 97,863 2,137 100,000
638,346$ 47,153$ 685,499$
Governmental Activities
61
NOTE 7 – LONG-TERM LIABILITIES (CONTINUED)
3. Changes in long-term liabilities
A summary of long-term liability activity, including debt, for the year ended June 30, 2024 is as follows. Additional
detailed information is available following the summary.
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Construction loan 1,241,104$ -$ (66,667)$ 1,174,437$ 67,932$
Settlement liability 167,603 -- 167,603 111,275
General obligation bonds 58,847,259 - (936,505)57,910,754 960,630
Subscription lease payable 53,249 725,097 (140,000)638,346 141,776
Total long-term debt 60,309,215 725,097 (1,143,172) 59,891,140 1,281,613
Compensated absences 285,641 335,575 (102,556) 518,660 200,526
60,594,856$ 1,060,672$ (1,245,728)$ 60,409,800$ 1,482,139$
Business-T pe activities:
Revenue notes payable 2,065,000$ 5,042,702$ (661,000)$ 6,446,702$ 688,000$
For governmental activities, compensated absences and SBITA obligations are generally liquidated by the general
fund and school general-purpose fund.
NOTE 8 – DEFERRED GAIN ON REFUNDING
The unamortized deferred gain on refunding relates to General Obligation Refunding Bonds for governmental
activities. Deferred gain on refunding reported in the statement of net position at June 30, 2024 of $677,077 related
to the refunding of the Series 2015 Capital Outlay Notes.
NOTE 9 – NET POSITION AND FUND BALANCE
Following is more detailed information on the government-wide calculation of net investment in capital assets:
Governmental Business-Type
Activities Activity Total
Capital assets, net of accumulated depreciation 137,081,983$ 25,589,493$ 162,671,476$
Total outstanding balance of capital debt (59,891,140) (6,446,702) (66,337,842)
Total other capital-related liabilities - (4,245,368) (4,245,368)
Deferred gain on refunding (677,077) - (677,077)
Unspent bond proceeds related to debt 587,364 - 587,364
Net investment in capital assets 77,101,130$ 14,897,423$ 91,998,553$
62
NOTE 9 – NET POSITION AND FUND BALANCE (CONTINUED)
Following is more detailed information on the governmental fund balances:
School Nonmajor
General General Governmental
Fund Purpose Funds Total
Nonspendable for:
Inventory 2,861$ -$ -$ 2,861$
Prepaid expenditures - 599 - 599
Total nonspendable fund balance 2,861 599 - 3,460
Restricted for:
Education capital projects - - 587,364 587,364
Storm water - - 372,642 372,642
Education - 6,746,331 1,588,670 8,335,001
Stabilization reserve trust - 302,706 - 302,706
Total restricted fund balance - 7,049,037 2,548,676 9,597,713
Committed for:
Park acquisition 84,720 - - 84,720
Major roads 265,852 - - 265,852
State street aid - - 1,241,707 1,241,707
Debt service - - 118 118
Total committed fund balance 350,572 - 1,241,825 1,592,397
Assigned to:
Parks - Athletic Complex 234,823 - - 234,823
Unassigned 6,948,587 - (250,795) 6,697,792
Total fund balances 7,536,843$ 7,049,636$ 3,539,706$ 18,126,185$
63
NOTE 10 – PENSIONS
The City of Lakeland and Lakeland School System participate in the following defined benefit multiple-employer
Public Employee Retirement Plans administered by the Tennessee Consolidated Retirement System (TCRS):
I. Public Employee Retirement Plan of TCRS (Classified Plan) – Certain employees of the City of Lakeland
and certain classified employees of the Lakeland School System that were former Legacy Shelby County
or Memphis City Schools Employees are included in this plan. The plan was closed to new membership
on January 1, 2015 but continues to provide benefits to existing members. This is an agent multiple-
employer pension plan.
II. Teacher Legacy Pension Plan of TCRS (School Certified Plan) – Certain certified employees with
membership in TCRS prior to July 1, 2014 are included in this plan. The plan was closed to new
membership on June 30, 2014 but continues to provide benefits to existing members. The plan is a cost
sharing multiple-employer pension plan.
III. Teacher Retirement Plan of TCRS (School Hybrid Plan) – Certain staff with membership in TCRS
beginning on or after July 1, 2014 are included in this plan. The plan is a hybrid plan which features both
a defined contribution element and a pension plan element. The plan is a cost sharing multiple-employer
pension plan.
The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board
of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury
Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS
issues a publicly available financial report that can be obtained at https://treasury.tn.gov/Retirement/Boards-and-
Governance/Reporting-and-Investment-Policies. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the
benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt
the benefit terms permitted by statute.
The net pension assets, deferred outflows of resources, net pension liabilities, and deferred inflows of resources
related to pensions reported on the statement of net position are summarized as follows:
Deferred Deferred
Net Pension Outflows of Net Pension Inflows of Pension
Asset Resources Liability Resources Expense
Governmental Activities
Classified Plan -$ 308,671$ 323,527$ 10,297$ 173,620$
School Certified Plan 2,915,655 2,741,584 - 712,760 508,840
School Hybrid Plan 80,314 228,147 - 82,594 98,718 Total governmental activities 2,995,969 3,278,402 323,527 805,651 781,178
Business-type Activities
Classified Plan - 26,510 28,464 906 6,857
Total 2,995,969$ 3,304,912$ 351,991$ 806,557$ 788,035$
For governmental activities, pension liability is generally liquidated by the general and school general purpose funds.
A. General Information about the Pension Plans
Benefits Provided
Under the Classified Plan and School Certified Plan, members are eligible to retire with an unreduced benefit at age
60 with 5 years of service credit or after 30 years of service credit regardless of age. A reduced early retirement
benefit is available at age 55 and vested. Under the School Hybrid Plan, members are eligible to retire with an
unreduced benefit at age 65 with 5 years of service credit or pursuant to the rule of 90 in which the member’s age
64
NOTE 10 – PENSIONS (CONTINUED)
and service credit total 90. A reduced early retirement benefit is available at age 60 and vested or pursuant to the
rule of 80.
Benefits are determined by a formula using the member’s highest five consecutive year average compensation and
the member’s years of service credit. Members vest with five years of service credit. Service-related disability benefits
are provided regardless of length of service. Five years of service is required for non-service-related disability
eligibility. The service related and non-service-related disability benefits are determined in the same manner as a
service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits
are available under various eligibility criteria.
Member and beneficiary annuitants are entitled to automatic cost of living adjustments (COLAs) after retirement. A
COLA is granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is based on
the change in the consumer price index (CPI) during the prior calendar year, capped at 3 percent, and applied to the
current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is
granted if the CPI change is between one-half percent and one percent. A member who leaves employment may
withdraw their employee contributions, plus any accumulated interest. Additionally, under the School Certified Plan
and School Hybrid Plan, benefit terms and conditions, including COLAs, can be adjusted on a prospective basis.
Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit
terms and conditions on an automatic basis.
Employees Covered by Benefit Terms
At the measurement date of June 30, 2023, the following employees were covered by the terms of the agent plan:
Classified
Plan
Inactive employees or beneficiaries currently receiving benefits 18
Inactive employees entitled to but not yet receiving benefits 16
Active employees 14
48
Contributions
Contributions for employees are established in the statutes governing the TCRS and may only be changed by the
Tennessee General Assembly or, for the School Hybrid Plan, by automatic cost controls set by law. Employees
contribute 5 percent of salary. The City and School make employer contributions at the rate set by the Board of
Commissioners as determined by an actuarial valuation. By law, employer contributions to each plan are required to
be paid. TCRS may intercept the City’s state shared taxes if the required employer contributions are not remitted.
The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned
by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Per
the statutory provisions governing TCRS, the employer contribution rate for the School Hybrid Plan cannot be less
than 4 percent, except in years when the maximum funded level, as established by the TCRS Board of Trustees is
reached. For the year ended June 30, 2024, employer contributions to the School TCRS Teacher Hybrid Plan
included contributions to the Pension Stabilization Reserve Trust of 1.05%, of covered payroll. Employer contributions
to each plan for the year ended June 30, 2024 were as follows:
Classified School School
Plan Certified Plan Hybrid Plan
Employer contributions 62,281$ 591,045$ 135,144$
Covered payroll 827,049 8,776,737 4,582,653
As a percentage of covered payroll 7.53% 6.73% 2.95%
65
NOTE 10 – PENSIONS (CONTINUED)
B. Actuarial Assumptions for each TCRS Plan
The total pension liability as of June 30, 2023 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation 2.25%
Salary increases Graded salary ranges from 8.72% to 3.44% based on age, including
inflation, avera in 4.00%
Investment rate of return 6.75%, net of investment expense, includin inflation
Cost-of-Livin Ad ustment 2.125%
Mortalit rates ctual experience includin an ad ustment for anticipated movement
The actuarial assumptions used in the June 30, 2023 actuarial valuation were based on the results of an actuarial
experience study performed for the period July 1, 2016 through June 30, 2020. The demographic assumptions were
adjusted to reflect more closely actual and expected future experience.
Investment Policy
The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees
in conjunction with the June 30, 2020 actuarial experience study. A blend of future capital market projects and
historical market returns was used in a building-block method in which a best-estimate of expected future real rates
of return (expected returns, net pension plan investment expense and inflation) is developed for each major asset
class. These best-estimates are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected inflation of
2.25%. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation
for each major asset class are summarized in the following table:
sset Class
Long-Term Expected
Real Rate of Return
Target
llocation
U.S. equit 4.88% 31%
Developed market international equit 5.37% 14%
Emer in market international equit 6.09% 4%
Private equit and strate ic lendin 6.57% 20%
U.S. fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees
as 6.75% based on a blending of the three factors described above.
Discount Rate
The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that employee contributions will be made at the current rate and that
contributions from the Board of Education will be made at the actuarially determined contribution rate pursuant to an
actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid
by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available
to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to determine total
pension liability.
66
NOTE 10 – PENSIONS (CONTINUED)
C. Net Pension Liability (Asset)
The net pension liability (asset) for each TCRS plan was measured as of June 30, 2023, and the total pension liability
(asset) used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. The
components of the net pension liability (asset) as of that date are as follows:
Agent Plan
Classified School School
Plan Certified Plan Hybrid Plan
Total Pension Liability
Service cost 72,017$
Interest 226,036
Changes of benefit items -
Differences between expected and actual experience 106,427
Changes in assumptions -
Benefit payments, including refunds (128,876)
Net change in total pension liability 275,604
Total pension liability - beginning 3,341,111
Total pension liability - ending 3,616,715
Plan Fiduciary Net Position
Contributions - employer 57,756$
Contributions - employee 45,549
Net investment income 206,498
Benefit payments (128,876)
Administrative expense (2,047)
Net change in plan fiduciary net position 178,880
Plan fiduciary net position - beginning 3,085,844
Plan fiduciary net position -ending 3,264,724
Net pension liability (asset) 351,991$
Plan fiduciary net position as a percentage
of the total pension liability 90.27%
Proportionate share of net pension liability (asset) (2,915,655)$ (80,314)$
Proportionate share at June 30, 2023 measurement date 0.247304% 0.189406%
Proportionate share at June 30, 2022 measurement date 0.215526% 0.179598%
Cost-Sharing Plans
The proportion of the net pension liability (asset) was based on the School’s contributions to each cost-sharing plan
relative to the contributions of all participating LEAs. Detailed information about each cost-sharing pension plan’s
fiduciary net position is available in a separately issued TCRS financial report.
67
NOTE 10 – PENSIONS (CONTINUED)
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate
The following presents the net pension liability (asset) or proportionate share of net pension liability (asset) of the City
related to each TCRS plan calculated using the discount rate of 6.75%, as well as what the net pension liability (asset)
or proportionate share of net pension liability (asset) would be if it were calculated using a discount rate that is 1-
percentage-point lower (5.75%) or 1-percentage point higher (7.75%) than the current rate:
1% Decrease Current Rate 1% Increase
Net pension liability (asset)
Classified Plan 878,043$ 351,991$ (80,669)$
Proportionate share of the net pension liability (asset)
School Certified Plan 6,350,500$ (2,915,655)$ (10,622,483)$
School Hybrid Plan 369,442 (80,314) (404,102)
D. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended June 30, 2024, the City reported pension expense, deferred outflows of resources, and deferred
inflows of resources related to each plan from the following sources:
Classified School School
Plan Certified Plan Hybrid Plan
Pension Expense (Negative Pension Expense) 180,477$ 508,840$ 98,718$
Deferred Outflows of Resources
Differences between expected and actual experience 80,295$ 694,658$ 2,705$
24,533 505,881 20,419
Changes in assumptions 168,072 950,000 60,424
Changes in proportion of net pension liability (asset)- - 9,455
62,281 591,045 135,144
Total 335,181$ 2,741,584$ 228,147$
Deferred Inflows of Resources
Differences between expected and actual experience 11,203$ 135,306$ 46,878$
Changes in proportion of net pension liability (asset)- 577,454 35,716
11,203$ 712,760$ 82,594$
Contributions subsequent to the measurement date of
June 30, 2023
Net difference between projected and actual earnings on
pension plan investments
The amounts shown above for “Contributions subsequent to the measurement date of June 30, 2023,” will be
recognized as a reduction (increase) to net pension liability (asset) in the following measurement period.
68
NOTE 10 – PENSIONS (CONTINUED)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows for the years ending June 30:
Classified School School
Plan Certified Plan Hybrid Plan
2025 106,931$ 476,610$ (3,300)$
2026 86,120 (608,530) (6,272)
2027 68,479 1,565,737 25,228
2028 167 3,962 (1,478)
2029 - - (1,354)
Thereafter - - (2,415)
In the table shown above, positive amounts will increase pension expense while negative amounts will decrease
pension expense.
NOTE 11 – DEFINED CONTRIBUTION EMPLOYEE BENEFIT PLAN
School Hybrid Plan 401(k) Portion
The School Hybrid Plan provides a combination of a defined benefit plan and a defined contribution plan. The defined
benefit portion of the Hybrid Plan is managed by TCRS. The defined contribution assets are deposited into the State’s
401(k) plan where the employee manages the investments within the 401(k) plan. Enrolled employees may, at their
option, contribute 2% of their salaries and employers are required to contribute 5% of those salaries to the defined
contribution (401(k)) portion of the Hybrid Plan. Contributions are made on a tax-deferred basis. Employees are
immediately vested in contributions. During 2024, the School’s employer contribution to the Hybrid Plan was
$425,573.
City of Lakeland and Lakeland School System 401(k) Plan
All regular full-time employees of the City and LSS hired after January 1, 2016, who have obtained the age of
eighteen, and who are not participating in the TCRS plans, are required to participate in the State of Tennessee
Deferred Compensation Plan II defined contribution 401(k) plan. The plan is administered by a third-party
administrator. The City of Lakeland Board of Commissioners has the authority for establishing and amending the
plan’s provisions. Under the plan terms, the City will match participant contributions up to 5% of the participant’s
salary. Participants are required to contribute 5% of their compensation. Participants are 100% vested in their
contributions when they are made and are 100% vested in the employer contributions after 5 years of service. During
2024, the City and School contributed $115,599 and $272,982, respectively, to the plan.
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)
The School administers a single-employer defined benefit other postemployment benefit plan to provide health care
benefits to certain School employees who qualify under the provisions of the TCRS i.e. Lakeland School System
Other Postemployment Benefit Plan (OPEB). The OPEB liability is liquidated by the school general purpose fund.
A. General Information about the OPEB Plan
Benefits Provided
Legacy employees that qualify for retirement benefits under the TCRS may be eligible for post-retirement health
benefits for life. Eligible employees must complete 15 years of service with the Lakeland School System and meet
the requirements under TCRS. Those who are former employees of Shelby County School District or Memphis City
Schools must have 15 years of continuous service with Lakeland School System, Shelby County, and/or Memphis
69
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) (CONTINUED)
City Schools prior to retirement. Legacy employees are those employees who have attained at least three years of
service as of July 1, 2016 from Lakeland School System, Shelby County School District or Memphis City Schools
and were hired by Lakeland School System directly from any Shelby County school system prior to October 15, 2018.
Non-Legacy employees are not eligible for any post-retirement health benefits. Surviving spouses of legacy retirees
can stay on the plan at their own expense until eligible for Medicare. The premium charged to retirees is the portion
of premiums not covered by the Lakeland School System explicit subsidy. The Board of Education has established
benefit provisions and contribution obligations.
Employees Covered by Benefit Terms
Plan membership as of the actuarial valuation date of June 30, 2024 consisted of the following:
Active employees 61
Inactive employees or beneficiaries currently receiving benefits 15
76
Contributions
Lakeland School System’s intent, at a minimum, is to partially fund the annual required contribution at $200,000 per
year and pay for the pay-as-you-go costs from the school general-purpose fund until the Trust balance is sufficient
to meet future benefit payments. Employer contributions are based on an actuarially determined rate. For the year
ended June 30, 2024, employer contributions including implicit subsidy of $54,529 to the plan were $296,682 which
were greater than the actuarially determined contribution for the plan of $250,682 by $46,000.
B. Actuarial Assumptions
Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. As such, the actuarial calculations of the OPEB plan reflect a long-term
perspective. Actuarially determined amounts are subject to continual revision as results are compared to past
expectations and new estimates are made about the future.
The total OPEB liability was determined by an actuarial valuation as of June 30, 2024, using the entry age normal
level percent of salary, actuarial cost method with liabilities rolled forward to the June 30, 2024, measurement date.
Significant actuarial assumptions used in the valuation include:
Inflation 2.25%
Salar increases Graded salar ran es from 7.5% to 3.7% based on a e
Investment rate of return 6.00%, net of investment expense, includin inflation
Mortality table SOA Pub-2010 mortality tables (General, Teacher, Contingent Survivors) fully
enerational usin scale MP-2021
Health care cost trend rate Pre-65: 8.0% initial, decreasing by 0.5% annually to an ultimate rate of 4.5% for
FY 2032
Post-65: 6.50% initial, decreasing by 0.25% annually to an ultimate rate of 4.5%
for FY 2032
Changes of assumptions
In 2024, the following assumptions were changed: decreased the investment rate of return from 6.5% to 6.0%,
decreased the inflation rate from 3.0% to 2.25%, increased the initial health care cost trend rate from 7% to 8% for
pre-65 retirees, and decreased the initial health care cost trend rate from 7% to 6.5% for post-65 retirees.
70
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) (CONTINUED)
Investment Policy
Lakeland School System has placed funds with the Tennessee School Board Association OPEB Trust (“TSBA OPEB
Trust”) to be used to pre-fund a portion of the OPEB liability. The assets of the TSBA OPEB Trust are commingled
with other participant’s funds for investment purposes but are held in an irrevocable trust for each plan participant
and may be used only for the payment of benefits to the members of the plan in accordance with the terms of their
plan. The TSBA OPEB Trust’s policy regarding allocation of invested assets is established and may be amended by
the TSBA OPEB Trust Board of Trustees by a majority vote of its members. The TSBA OPEB Trust obtains an
annual audit, which may be obtained from the TSBA at 525 Brick Church Park Drive, Nashville, TN 37207; however,
the audit for the year ended June 30, 2024, was not available from other auditors as of the date of this report.
It is the policy of the TSBA OPEB Trust Board to pursue an investment strategy that reduces risk through prudent
diversification of the portfolio across a broad selection of distinct asset classes. The investment policy discourages
the use of cash equivalents, except for liquidity purposes, and aims to refrain from dramatically shifting asset class
allocations over short time spans. The long-term expected rate of return on OPEB plan investments was determined
using a building block method in which expected future rates of return are developed for each major asset class.
These expected future rates of return are then combined to produce the long-term expected rate of return by weighting
them based on the target asset allocation percentage. The best estimates of arithmetic real rates of return for each
major asset class included in the target asset allocation as of June 30, 2024 as summarized as follows:
sset Class Tar et Allocation Lon -Term Expected Rate of Return
US lar e equit 35.0% 7.54%
International equit 17.0% 7.28%
Fixed Income 42.0% 4.18%
Equit Hed e Assets 6.0% 5.90%
100% 6.00%
Rate of Return
For the year ended June 30, 2024, the annual money-weighted rate of return on investments was 11.92 percent. The
money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for the
changing amounts invested.
Discount Rate Information
The discount rate used in valuing OPEB liabilities in funded plans as of the measurement date must be based on the
long-term expected rate of return on OPEB plan investments that are expected to be used to finance future benefit
payments to the extent that they are sufficient to pay for projected benefit payments and the OPEB plan assets are
invested using a strategy that will achieve that return. When the OPEB plan investments are insufficient to cover
future benefit payments, a yield for 20-year tax-exempt general obligation municipal bonds with an average rating of
AA/Aa or higher (or equivalent quality on another rating scale) must be used. The final equivalent single discount
rate as of June 30, 2024 is 6.0% with the assumption that Lakeland School System will eventually pay the pay-go
costs out of the OPEB Trust at the time the Trust is expected to be sufficient to finance all future benefit payments.
71
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) (CONTINUED)
C. Net OPEB Liability
The components of the School’s net OPEB liability based on a measurement date of June 30, 2024 were as follows:
Total Plan Fiduciary Net OPEB
OPEB Liability Net Position Liability (Asset)
Beginning of year 4,155,200$ 2,916,332$ 1,238,868$
Changes for the year:
Service cost 164,063 - 164,063
Interest 274,805 - 274,805
Change in benefit terms 34,958 - 34,958
Differences between expected and
actual experience (669,405) - (669,405)
Changes in assumptions 455,873 - 455,873
Contributions - employer - 296,682 (296,682)
Net investment income - 356,198 (356,198)
Benefit payments (146,682) (146,682) -
Administrative expenses - (12,812) 12,812
Other changes (19,300) - (19,300)
Net changes 94,312 493,386 (399,074)
End of yea 4,249,512$ 3,409,718$ 839,794$
Plan fiduciary net position as a percentage
of the total OPEB liabilit 80.24%
Increase (Decrease)
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate
The following presents the School’s net OPEB liability (asset) calculated using the discount rate of 6.0%, as well as
what the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower
(5.0%) or 1-percentage point higher (7.0%) than the current rate:
1% Decrease Current Rate 1% Increase
Net OPEB liability (asset) 1,383,446$ 839,794$ 388,593$
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rate
The following presents the School’s net OPEB liability (asset) calculated using the healthcare cost trend initial rates.
These, respectively, are Pre-65 (Post-65) participants of 8.0% decreasing by 0.5% annually to an ultimate rate of
4.5% as well as what the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-
percentage-point lower, 7.0% decreasing to 3.5%, or 1-percentage-point higher, 9.0% decreasing to 5.5%, than the
current rate:
1% Decrease Current Rate 1% Increase
Net OPEB liability (asset) 406,712$ 839,794$ 1,365,146$
D. OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB
Other Postemployment Benefit Expense
For the year ended June 30, 2024, the School recognized OPEB expense of $81,140.
72
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) (CONTINUED)
Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended June 30, 2024, the School reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
234,939$ 2,500,179$
Changes in assumptions 995,578 233,364
- 56,401
Total 1,230,517$ 2,789,944$
Differences between expected and actual experience
Net difference between projected and actual earnings on OPEB
plan investments
Amounts recognized as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in pension expense as follows for the year ending June 30:
2025 (225,839)$
2026 (152,048)
2027 (262,108)
2028 (244,822)
2029 (212,371)
Thereafter (462,239)
In the table shown above, positive amounts will increase OPEB expense while negative amounts will decrease OPEB
expense.
NOTE 13 - COMMITMENTS AND CONTINGENCIES
Shelby County Trustee
The City has contracted with the Shelby County Trustee (the Trustee) to collect real and personal property taxes on
behalf of the City. A 2.5% commission is paid to the Trustee. The collection fees paid to the Trustee are expensed in
the general government function as contractual services.
Legal Contingencies
Legal proceedings against the City, many of which normally recur in governmental operations, can arise periodically.
City officials are not aware of any future legal contingencies to record on the financial statements as of June 30,
2024.
73
NOTE 14 - RISK MANAGEMENT
Insurance Other Than Health Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and
omissions; and natural disasters. The City considers it more economically feasible to participate in a public entity risk
pool as opposed to purchasing commercial insurance for certain general liability, workers’ compensation, and
property and casualty insurance. As such, the City participates in the Public Entity Partners Risk Management Pool
(the Pool), which is a public entity risk pool consisting of member political subdivisions of the State of Tennessee that
works in many ways like a traditional insurer. Members can obtain typical insurance coverage limits and deductible
options at reasonable rates according to their risk tolerance while the Pool provides traditional underwriting,
reinsurance, claims processing and loss control services. Unlike commercial insurance, the Pool offers the
opportunity to earn a pro-rata refund of the surplus premiums according to the City’s premium paid and its favorable
loss experience in recent years. Each political subdivision that has participated in the pool is subject to assessment
if the funds it paid as premiums are insufficient to meet the obligations of the pool. The pool may reinsure through
the Local Government Reinsurance Fund of Tennessee or a commercial insurance company.
The School continues to carry commercial insurance through Public Risk Insurers for all purposes. The City continues
to carry commercial insurance for all other risks of loss, including certain general liability and property and casualty
insurance. The City has replacement cost insurance, including earthquake coverage, on all buildings and on mobile
equipment and vehicles costing more than $25,000 each. The City and School have not incurred any losses more
than commercial insurance coverage for the past three fiscal years. Liabilities are reported when it is probable that
a loss has occurred, and the amount of the loss can be reasonably estimated.
Health Insurance
The City and School participate in the Interlocal Health Benefits Plan Asset Trust to reduce costs of benefit plan
administration and lower premium rates related to healthcare benefits. The Interlocal Health Plan is accounted for
as a public entity risk pool but operates solely as a risk-sharing pool. Benefits and premium requirements are
established and may be amended by an insurance committee. The plan is self-insured and financed on a pay-as-
you-go basis with the risk shared equally among the participants. Claims liabilities of the plan are periodically
computed using actuarial and statistical techniques to establish premium rates. The employers in each plan develop
a contribution policy in term of subsidizing active employees or retired employees’ premiums since the committee is
not prescriptive on that issue. The plan has a separately issued Annual Comprehensive Financial Report and can
be found on the state’s website at http://www.comptroller.tn.gov/advance-search.html.
The City and the School are only liable for their portion of plan premiums plus any outstanding capital requirements
from the Interlocal Health Plan. The liability for any incurred-but-not-reported claims is borne by the Interlocal Health
Plan and not by the individual members. During the year ended June 30, 2024, the City and the School contributed
premiums of $603,706 and $2,596,019, respectively to the Interlocal Health Benefits Plan Asset Trust.
NOTE 15 – REVISION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Subsequent to the issuance of the City’s financial statements and related audit reports dated February 13, 2025,
management identified a material omission in the Schedule of Expenditures of Federal Awards (SEFA) related to
federal loan proceeds received under the Clean Water State Revolving Fund (ALN 66.458). The omitted expenditures
met the criteria of a major federal program under the Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance).
As a result, the SEFA has been revised to include the omitted expenditures, and additional audit procedures were
performed by the auditors to audit this program in accordance with the requirements of the Uniform Guidance. No
changes were made to the basic financial statements other than the revised SEFA. Accordingly, the auditor’s report
on the financial statements has been dual dated to July 22, 2025, with respect to this matter. The auditor’s reports
issued under Government Auditing Standards and the Uniform Guidance have been redated to reflect the completion
of these additional procedures.
REQUIRED SUPPLEMENTARY INFORMATION
74
LAKELAND SCHOOL SYSTEM AND CITY OF LAKELAND
PUBLIC EMPLOYEE RETIREMENT PLAN (TCRS AGENT PLAN)
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years Ended June 30
Exhibit A-1
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Total Pension Liabilit
Service cos 72,017$ 57,797$ 56,033$ 52,918$ 74,961$ 102,41$ 101,31$ 124,091$ 135,26$ 83,026$
Interes 226,03 215,53 192,53 180,03 176,22 148,32 148,12 135,25 125,25 103,83
Chan es of benefit item - - - - - - - - - -
Differences between expecte
and actual experienc 106,42 7,963 18,055 46,728 70,835 248,67 158,858 7,978 44,512 95,059
Chan es in assumption - - 420,18 - - - 47,157 - - -
Benefit pa ment 128,876 119,166 110,761 110,012 101,392 72,988 63,051 82,795 60,195 36,900
Net chan e in total pension liabilit 275,60 146,20 539,93 169,66 78,954 426,42 74,691 184,52 155,81 245,01
Total pension liabilit - be innin 3,341,111 3,194,90 2,654,97 2,485,30 2,406,35 1,979,92 1,905,23 1,720,70 1,564,89 1,319,87
Total pension liabilit - endin 3,616,71 3,341,111 3,194,90 2,654,97 2,485,30 2,406,35 1,979,92 1,905,23 1,720,70 1,564,89
Plan Fiduciary Net Position
Contributions - emplo e 57,756 37,392 37,736 36,167 56,433 87,400 85,193 93,608 101,21 94,211
Contributions - emplo e 45,549 43,479 43,879 42,05 42,327 49,878 49,531 54,424 58,40 54,773
Net investment incom 206,49 123,545 669,512 124,16 174,79 177,71 211,24 46,404 49,863 216,83
Benefit pa ment 128,876 119,166 110,761 110,012 101,392 72,988 63,051 82,795 60,195 36,900
dministrative expens 2,047 1,721 1,712 1,772 1,799 2,251 2,121 2,129 1,797 862
Net chan e in plan fiduciar net positio 178,88 163,561 638,65 90,606 170,36 239,75 280,79 109,512 147,49 328,06
Plan fiduciar net position - be innin 3,085,84 3,249,40 2,610,751 2,520,14 2,349,77 2,110,01 1,829,22 1,719,70 1,572,21 1,244,15
Plan fiduciar net position -endin 3,264,72 3,085,84 3,249,40 2,610,751 2,520,14 2,349,77 2,110,01 1,829,22 1,719,70 1,572,21
Net pension liability (asset 351,991$ 255,26$ 54,498$ 44,223$ 34,838$ 56,576$ 130,093$ 76,01$ 998$ 7,322$
Plan fiduciary net position as a percentag
of the total pension liabilit 90.27% 92.36% 101.71% 98.33% 101.40% 97.65% 106.57% 96.01% 99.94% 100.47%
Covered payroll 910,971$ 869,57$ 877,58$ 841,08$ 846,52$ 997,55$ 990,62$ 1,088,47$ 1,176,95$ 1,095,47$
Net pension liability (asset) as
percentage of covered payrol 38.64% 29.36% -6.21% 5.26% -4.12% 5.67% -13.13% 6.98% 0.08% -0.67%
NOTE 1 - CHANGES OF ASSUMPTION
In 2017, amounts reported as changes of assumptions resulted from changes to the inflation rate, investment rate of return, cost-of-living adjustment, salary growth, and mortality improvements.
In 2021, amounts reported as changes of assumptions resulted from changes to the inflation rate, investment rate of return, cost-of-living adjustment, and mortality improvements.
75
LAKELAND SCHOOL SYSTEM AND CITY OF LAKELAND
PUBLIC EMPLOYEE RETIREMENT PLAN (TCRS AGENT PLAN)
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years Ended June 30
Exhibit A-2
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined
contribution 62,773$ 57,756$ 37,392$ 37,736$ 36,167$ 56,433$ 87,400$ 69,682$ 93,608$ 101,218$
Contributions 62,281 57,756 37,392 37,736 36,167 56,433 87,400 85,193 93,608 101,218
Contribution deficiency (excess) 492$ -$ -$ -$ -$ -$ -$ (15,511)$ -$ -$
Covered payroll 827,049$ 910,971$ 869,574$ 877,583$ 841,088$ 846,528$ 997,556$ 990,620$ 1,088,473$ 1,176,953$
Contributions as a percentage
of covered payroll 7.53% 6.34% 4.30% 4.30% 4.30% 6.67% 8.76% 8.60% 8.60% 8.60%
NOTE 1 - METHODS AND ASSUMPTIONS USED TO DETERMINE CONTRIBUTION RATE
Valuation date
Actuarial cost method Entry Age Normal
Amortization method Level dollar, closed (not to exceed 20 years
Remaining amortization period Varies by yea
Asset valuation method 10 year smoothed with a 20% corridor to market value
Inflation 2.25%
Salary increases
Investment rate of return 6.75%, net of investment expenses, including inflation
Retirement age Pattern of retirement determined by experience stud
Mortalit
Cost of Living Adjustments 2.125%
NOTE 2 - CHANGES OF ASSUMPTION
In 2017, the following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent; decreased the investment rate of return from 7.50 percent to 7.25 percent;
decreased the cost-of-living adjustment from 2.50 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4.00 percent; and
modified mortalit assum tions.
In 2021, the following assumptions were changed: decreased inflation rate from 2.50 percent to 2.25 percent; decreased the investment rate of return from 7.25 percent to 6.75 percent;
decreased the cost-of-livin ad ustment from 2.25 percent to 2.125 percent; and modified mortalit assumptions.
Graded salary ranges from 8.72% to 3.44% based on age, including inflation, averaging 4.00%
Customized table based on actual experience including an adjustment for some anticipated movement
Actuarially determined contributions for fiscal year 2024 were calculated based on the June 30, 2022 actuarial valuation.
76
LAKELAND SCHOOL SYSTEM
TEACHER LEGACY PENSION PLAN (CERTIFIED TCRS PLAN)
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET)
Last Ten Fiscal Years Ended June 30
Exhibit A-3
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Proportion of the net
pension liability (asset) 0.247304% 0.215526% 0.204841% 0.199687% 0.183808% 0.158417% 0.112938% 0.100034% 0.908630% 0.217500%
Proportionate share of the
net pension liability (asset)(2,915,655)$ (2,643,223)$ (8,835,304)$ (1,522,758)$ (1,889,878)$ (557,457)$ (36,950)$ 625,158$ 37,221$ (353)$
Covered payroll 8,025,144$ 7,092,820$ 6,723,240$ 6,646,084$ 6,163,343$ 5,547,257$ 3,904,255$ 3,611,030$ 3,401,445$ 85,374$
Proportionate share of the net
pension liability (asset) as
a percentage of its
covered payroll -36.33% -37.27% -131.41% -22.91% -30.66% -10.05% -0.95% 17.31% 1.09% -0.41%
Plan fiduciary net position
as a percentage of the
total pension liability 104.11% 104.42% 116.13% 103.09% 104.28% 101.49% 100.14% 97.14% 99.81% 100.08%
77
LAKELAND SCHOOL SYSTEM
TEACHER LEGACY PENSION PLAN (CERTIFIED TCRS PLAN)
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years Ended June 30
Exhibit A-4
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Contractually required 591,045$ 697,385$ 730,561$ 690,477$ 706,479$ 644,686$ 503,691$ 360,905$ 326,437$ 307,490$
Contribution in relation to the
contractually required contribution 591,045 697,385 730,561 690,477 706,479 644,686 503,691 360,905 326,437 307,490
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered payroll 8,776,737$ 8,025,144$ 7,092,820$ 6,723,240$ 6,646,084$ 6,163,343$ 5,547,257$ 3,904,255$ 3,611,030$ 3,401,445$
Contributions as a percentage
of covered payroll 6.73% 8.69% 10.30% 10.27% 10.63% 10.46% 9.08% 9.24% 9.04% 9.04%
NOTE 1 - CHANGES OF ASSUMPTION
In 2017, the following assumptions were changed: decreased inflation rate from 3.00% to 2.50%; decreased the investment rate of return from 7.50% to 7.25%; decreased the cost-of-living
adustment from 2.50% to 2.25%; decreased salar rowth raded ran es from an avera e of 4.25% to an avera e of 4.00%; and modified mortalit assum tions.
In 2021, the following assumptions were changed: decreased inflation rate from 2.50% to 2.25%; decreased the investment rate of return from 7.25% to 6.75%; decreased the cost-of-living
adustment from 2.25% to 2.125%; and modified mortalit assum tions.
78
LAKELAND SCHOOL SYSTEM
TEACHER RETIREMENT PENSION PLAN (TCRS HYBRID PLAN)
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET)
Last Ten Fiscal Years Ended June 30
Exhibit A-5
2023 2022 2021 2020 2019 2018 2017 2016 2015
Proportion of the net
pension liability (asset) 0.189406% 0.179598% 0.188043% 0.158725% 0.144815% 0.158576% 0.055238% 0.069721% 0.057412%
Proportionate share of the
net pension liability (asset)(80,314)$ (54,405)$ (203,690)$ (90,258)$ (81,746)$ (71,918)$ (14,573)$ (7,258)$ (2,309)$
Covered payroll 3,767,366$ 3,066,979$ 2,713,911$ 2,003,003$ 1,532,436$ 1,385,759$ 450,602$ 306,781$ 119,286$
Proportionate share of the net
pension liability (asset) as
a percentage of its
covered payroll -2.13% -1.77% -7.51% -4.51% -5.33% -5.19% -3.23% -2.37% -1.94%
Plan fiduciary net position
as a percentage of the
total pension liability 104.97% 104.55% 121.53% 116.52% 123.07% 126.97% 126.81% 121.88% 127.46%
This is a 10-year schedule. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future fiscal years until 10 years of
information is available.
79
LAKELAND SCHOOL SYSTEM
TEACHER RETIREMENT PENSION PLAN (TCRS HYBRID PLAN)
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years Ended June 30
Exhibit A-6
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Contractually required 135,144$ 108,123$ 61,646$ 54,820$ 40,661$ 29,729$ 22,598$ 14,502$ 7,679$ 2,982$
Contribution in relation to the
contractually required contribution 135,144 108,123 61,646 54,820 40,661 29,729 55,430 14,502 12,271 4,771
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ (32,832)$ -$ (4,592)$ (1,789)$
Covered payroll 4,582,653$ 3,767,366$ 3,066,979$ 2,713,911$ 2,003,003$ 1,532,436$ 1,385,759$ 450,602$ 306,781$ 119,286$
Contributions as a percentage
of covered payroll 2.95% 2.87% 2.01% 2.02% 2.03% 1.94% 4.00% 3.22% 4.00% 4.00%
Contributions as a percentage
of covered payroll placed into
Pension Stabilization Reserve Trust* 1.05% 1.13% 1.99% 1.98% 1.97% 2.06% 0.00% 0.00% 0.00% 0.00%
NOTE 1 - CHANGES OF ASSUMPTIONS
In 2017, the following assumptions were changed: decreased inflation rate from 3.00% to 2.50%; decreased the investment rate of return from 7.50% to 7.25%; decreased the cost-of-living
adjustment from 2.50% to 2.25%; decreased salary growth graded ranges from an average of 4.25% to an average of 4.00%; and modified mortality assumptions.
In 2021, the following assumptions were changed: decreased inflation rate from 2.50% to 2.25%; decreased the investment rate of return from 7.25% to 6.75%; decreased the cost-of-living
adjustment from 2.25% to 2.125%; and modified mortality assumptions.
* Beginning in fiscal year 2019, contributions in excess of amounts required by TCRS to be placed towards the pension were placed in a Pension Stabilization Reserve Trust.
80
LAKELAND SCHOOL SYSTEM
OTHER POSTEMPLOYMENT BENEFIT PLAN
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years Ended June 30
Exhibit A-7
2024 2023 2022 2021 2020 2019 2018 2017 2016
Total OPEB Liability
Service cost 164,063$ 220,458$ 256,031$ 253,347$ 182,651$ 189,121$ 112,708$ 104,359$ 12,471$
Interest 274,805 362,751 358,203 336,860 279,878 263,050 204,813 183,967 45,368
Changes of benefit items 34,958 - - - - - 219,591 - 1,910,502
Differences between expected
and actual experience (669,405) (1,698,576) (650,498) (137,551) 424,160 (170,827) 76,196 - (99,959)
Changes in assumptions 455,873 46,981 (292,770) - 1,019,657 - 172,083 - (113,700)
Benefit payments (146,682) (140,739) (78,804) (119,822) (50,186) (32,183) (22,656) (32,649) (12,134)
Other changes (19,300) - - - - - - - -
Net change in total OPEB liability 94,312 (1,209,125) (407,838) 332,834 1,856,160 249,161 762,735 255,677 1,742,548
Total OPEB liability - beginning 4,155,200 5,364,325 5,772,163 5,439,329 3,583,169 3,334,008 2,571,273 2,315,596 573,048
Total OPEB liability - ending 4,249,512 4,155,200 5,364,325 5,772,163 5,439,329 3,583,169 3,334,008 2,571,273 2,315,596
Plan Fiduciary Net Position
Contributions - employer 296,682 290,739 756,062 269,822 525,186 417,416 377,156 161,149 112,003
Net investment income 356,198 290,209 (383,241) 468,647 27,912 64,059 24,583 25,907 5,683
Benefit payments (146,682) (140,739) (78,804) (119,822) (50,186) (47,416) (22,656) (32,649) (12,134)
Administrative expense (12,812) (10,713) (9,892) (7,653) (5,594) (3,658) (1,391) (653) -
Net change in plan fiduciary net position 493,386 429,496 284,125 610,994 497,318 430,401 377,692 153,754 105,552
Plan fiduciary net position - beginning 2,916,332 2,486,836 2,202,711 1,591,717 1,094,399 663,998 286,306 132,552 27,000
Plan fiduciary net position -ending 3,409,718 2,916,332 2,486,836 2,202,711 1,591,717 1,094,399 663,998 286,306 132,552
Net OPEB liability (asset)839,794$ 1,238,868$ 2,877,489$ 3,569,452$ 3,847,612$ 2,488,770$ 2,670,010$ 2,284,967$ 2,183,044$
Plan fiduciary net position as a
percentage of the total OPEB liability 80.24% 70.19% 46.36% 38.16% 29.26% 30.54% 19.92% 11.13% 5.72%
Covered payroll 4,337,750$ 4,377,443$ 4,609,191$ 4,821,770$ 4,782,810$ 5,306,108$ 5,184,986$ 3,300,603$ 3,204,469$
Net OPEB liability as a percentage
of covered payroll 19.36% 28.30% 62.43% 74.03% 80.45% 46.90% 51.50% 69.23% 68.12%
This is a 10-year schedule. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in future fiscal years until 10 years of
information is available.
In 2023, amounts reported as changes of assumptions resulted from changes to the investment rate of return.
In 2022, amounts reported as changes of assumptions resulted from changes to the investment rate of return.
In 2024, amounts reported as changes of assumptions resulted from changes to the investment rate of return.
81
LAKELAND SCHOOL SYSTEM
OTHER POSTEMPLOYMENT BENEFIT PLAN
SCHEDULE OF CONTRIBUTIONS
Last Ten Fiscal Years Ended June 30
Exhibit A-8
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
ctuarially determined contribution 250,682$ 409,592$ 468,902$ 475,549$ 351,709$ 366,572$ 257,746$ 240,597$ 67,209$ 74,970$
Contributions 296,682 290,739 756,062 269,822 525,186 417,416 377,156 161,149 112,003 27,000
Contribution deficiency (excess) (46,000)$ 118,853$ (287,160)$ 205,727$ (173,477)$ (50,844)$ (119,410)$ 79,448$ (44,794)$ 47,970$
Covered payroll 4,337,750$ 4,377,443$ 4,609,191$ 4,821,770$ 4,782,810$ 5,306,108$ 5,184,986$ 3,300,603$ 3,204,469$ N/
Contributions as a percentage
of covered payroll 6.84% 6.64% 16.40% 5.60% 10.98% 7.87% 7.27% 4.88% 3.50% N/
Valuation Date ctuarial determined contribution rates for fiscal year 2024 were calculated based on the June 30, 2022 valuation.
ctuarial cost method
mortization method
sset valuation method
Inflation
Salary increases
Investment rate of return
Mortalit
Healthcare cost trend rates
3.0%
Graded salary ranges from 7.5% to 3.7% based on age, including inflation
6.60%, net of investment expenses, including inflation
SOA Pub-2010 mortality tables (General, Teacher, Contingent Survivors) fully generational using Scale MP-2021
Pre-65 & Post-65 benefits - 7.0% initial, decreasing by 0.5% annually to an ultimate rate of 4.5% for FY2029 and onward
Market value
NOTE 1 - METHODS AND ASSUMPTIONS USED TO DETERMINE CONTRIBUTION RATE
Entry age normal
Level percentage of salary
82
LAKELAND SCHOOL SYSTEM
OTHER POSTEMPLOYMENT BENEFIT PLAN
SCHEDULE OF MONEY-WEIGHTED RATE OF RETURN
Last Ten Fiscal Years Ended June 30
Exhibit A-9
Annual Money-Weighted
Rate of Return
Net of Investment Expenses
2024 11.92%
2023 11.18%
2022 -14.69%
2021 29.37%
2020 3.60%
2019 7.32%
2018 6.25%
2017 14.10%
2016 -2.12%
This is a 10-year schedule. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule in
future fiscal years until 10 years of information is available.
83
SUPPLEMENTARY INFORMATION
84
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
85
CITY OF LAKELAND, TENNESSEE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
Exhibit B-1
Total
State Storm Solid School School School Internal Education Nonmajo
Street Aid Water Waste Federal Nutrition Discretionar LEAP School Capital Deb Governmental
Fund Fund Fund Projects Fund Grants Fund Funds Projects Service Funds
ASSETS
Cash and cash equivalent 1,630,197$ 504,755$ -$ 57,998$ 736,520$ -$ 295,967$ 584,826$ 898,162$ 118$ 4,708,543$
Receivables
Custome - 65,074 224,619 - - - - - - - 289,693
Othe - - - - 1,832 - - - - - 1,832
Due from other government 84,994 - 469,257 226,371 - 13,047 - - 80,735 - 874,404
Due from other fund 13,121 - - - - - - - - - 13,121
Inventor - - - - - - - 5,502 - - 5,502
Total assets 1,728,312$ 569,829$ 693,876$ 284,369$ 738,352$ 13,047$ 295,967$ 590,328$ 978,897$ 118$ 5,893,095$
LIABILITIES
Accounts payable an
accrued liabilities 480,294$ 5,387$ 137,786$ 200$ 2,533$ -$ 575$ -$ 391,533$ -$ 1,018,308$
Accrued payroll 6,311 2,049 3,370 33,381 4,120 5,020 234 - - - 54,485
Due to other fund - 189,751 146,169 212,506 - 8,027 - - - - 556,453
Unearned revenu - - - - 28,515 - - - - - 28,515
Total liabilities 486,605 197,187 287,325 246,087 35,168 13,047 809 - 391,533 - 1,657,761
DEFERRED INFLOWS OF RESOURCES
Unavailable revenu
Grants - - 469,257 226,371 - - - - - - 695,628
FUND BALANCES
Restricted - 372,642 - - 703,184 - 295,158 590,328 587,364 - 2,548,676
Committed 1,241,707 - - - - - - - - 118 1,241,825
Unassigned - - (62,706) (188,089 - - - - - - (250,795
Total fund balances 1,241,707 372,642 (62,706) (188,089 703,184 - 295,158 590,328 587,364 118 3,539,706
Total liabilities, deferred inflows of
resources and fund balance 1,728,312$ 569,829$ 693,876$ 284,369$ 738,352$ 13,047$ 295,967$ 590,328$ 978,897$ 118$ 5,893,095$
Special Revenue Funds
86
CITY OF LAKELAND, TENNESSEE
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2024
Exhibit B-2
Total
State Storm Solid School School School Internal Education Nonmajo
Street Aid Water Waste Federal Nutrition Discretionar LEAP School Capital Deb Governmental
Fund Fund Fund Projects Fund Grants Fund Funds Projects Service Funds
REVENUES
Intergovernmental - state gas ta 490,759$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 490,759$
Charges for service - 212,482 1,376,096 - 535,478 - 274,051 - - - 2,398,107
Federal, state, and local grant - - - 730,136 463,807 163,861 - - - - 1,357,804
Contributions - - - - - - - - 1,132,665 - 1,132,665
Co-curricula - - - - - - - 1,145,785 - - 1,145,785
Interest on investment - 1,278 - - - - - - 25,672 10 26,960
Othe 5,269 - 1,803 - 146 - 25 - - - 7,243
Total revenues 496,028 213,760 1,377,899 730,136 999,431 163,861 274,076 1,145,785 1,158,337 10 6,559,323
EXPENDITURES
Curren
Public works 3,312,919 68,566 1,781,594 - - - - - - - 5,163,079
Education - - - 863,304 813,957 217,831 252,813 1,034,113 - - 3,182,018
Debt service
Principal - - - - - 28,212 - - - 1,003,172 1,031,384
Interest and fiscal charge - - - - - 788 - - - 1,441,689 1,442,477
Capital outla 24,193 264,388 - - - - - - 3,907,383 - 4,195,964
Total expenditure 3,337,112 332,954 1,781,594 863,304 813,957 246,831 252,813 1,034,113 3,907,383 2,444,861 15,014,922
Excess (deficiency) of revenue
over (under) expenditure (2,841,084 (119,194 (403,695 (133,168 185,474 (82,970) 21,263 111,672 (2,749,046 (2,444,851 (8,455,599
OTHER FINANCING SOURCES (USES)
Issuance of subscription liabilit - - - - - 82,970 - - - - 82,970
Insurance proceed - - - - - - - - 99,078 - 99,078
Transfers in 1,967,236 - 275,000 - - - - - 663,790 2,444,915 5,350,941
Total other financing sources and use 1,967,236 - 275,000 - - 82,970 - - 762,868 2,444,915 5,532,989
Net change in fund balance (873,848 (119,194 (128,695 (133,168 185,474 - 21,263 111,672 (1,986,178 64 (2,922,610
Fund balances - beginnin 2,115,555 491,836 65,989 (54,921) 517,710 - 273,895 478,656 2,573,542 54 6,462,316
Fund balances - endin 1,241,707$ 372,642$ (62,706)$ (188,089$ 703,184$ -$ 295,158$ 590,328$ 587,364$ 118$ 3,539,706$
Special Revenue Funds
87
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STATE STREET AID FUND
For the Year Ended June 30, 2024
Exhibit B-3
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - state gas tax
Gas motor fuel 251,562$ 251,562$ 249,469$ (2,093)$
Gas 1989 71,859 71,859 71,552 (307)
Gas 3 cent 39,000 39,000 39,002 2
Gas 2017 135,545 135,545 125,774 (9,771)
Excise tax - - 4,962 4,962
Total intergovernmental - state gas tax 497,966 497,966 490,759 (7,207)
Other - - 5,269 5,269
Federal, state, and local grants 117,000 117,000 - (117,000)
Total revenues 614,966 614,966 496,028 (118,938)
EXPENDITURES
PUBLIC WORKS
Salaries 220,222 220,322 220,231 91
Benefits 88,517 113,217 96,947 16,270
Contractual services 6,000 9,423 9,423 -
Materials and supplies 370,500 473,784 437,338 36,446
Paving 1,967,261 3,829,151 2,495,169 1,333,982
Street lighting 20,000 54,500 36,577 17,923
Other charges 9,640 19,540 17,234 2,306
Total public works 2,682,140 4,719,937 3,312,919 1,407,018
CAPITAL OUTLA - 24,200 24,193 7
Total expenditures 2,682,140 4,744,137 3,337,112 1,407,025
Deficiency of revenues
under expenditures (2,067,174) (4,129,171) (2,841,084) 1,288,087
OTHER FINANCING SOURCES
Transfers in 1,866,910 2,074,954 1,967,236 (107,718)
Net change in fund balances (200,264)$ (2,054,217)$ (873,848) 1,180,369$
Fund balances - beginning 2,115,555
Fund balances - ending 1,241,707$
Budgeted Amounts
88
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STORM WATER FUND
For the Year Ended June 30, 2024
Exhibit B-4
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 210,417$ 210,417$ 212,482$ 2,065$
Interest on investments - - 1,278 1,278
Total revenues 210,417 210,417 213,760 3,343
EXPENDITURES
PUBLIC WORKS
Salaries 44,134 44,334 37,808 6,526
Benefits 18,346 20,046 17,751 2,295
Contractual services 7,500 5,500 2,130 3,370
Materials and supplies 8,950 8,950 1,200 7,750
Other charges 12,460 12,560 9,677 2,883
Total public works 91,390 91,390 68,566 22,824
CAPITAL OUTLA 300,000 300,000 264,388 35,612
Total expenditures 391,390 391,390 332,954 58,436
Deficiency of revenues
under expenditures (180,973) (180,973) (119,194) 61,779
Net change in fund balances (180,973)$ (180,973)$ (119,194) 61,779$
Fund balances - beginning 491,836
Fund balances - ending 372,642$
Budgeted Amounts
89
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SOLID WASTE FUND
For the Year Ended June 30, 2024
Exhibit B-5
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 1,408,678$ 1,408,678$ 1,376,096$ (32,582)$
Other income - - 1,803 1,803
Total revenues 1,408,678 1,408,678 1,377,899 (30,779)
EXPENDITURES:
PUBLIC WORKS
Salaries 66,880 67,180 64,894 2,286
Benefits 29,118 29,118 24,342 4,776
Contractual services 1,073,000 1,656,200 1,616,645 39,555
Materials and supplies 23,500 44,817 44,501 316
Other charges 61,550 40,733 31,212 9,521
Total public works 1,254,048 1,838,048 1,781,594 56,454
Excess (deficiency) of reveneus
over (under) expenditures 154,630 (429,370) (403,695) 25,675
OTHER FINANCING SOURCES
Transfers in - 275,000 275,000 -
Net change in fund balances 154,630$ (154,370)$ (128,695) 25,675$
Fund balances - beginning 65,989
Fund balances - ending (62,706)$
Budgeted Amounts
90
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SCHOOL FEDERAL PROJECTS FUND
For the Year Ended June 30, 2024
Exhibit B-6
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Federal, state, and local grants 948,990$ 1,280,819$ 730,136$ (550,683)$
EXPENDITURES:
Education
Regular Instruction
Salaries 116,518 121,898 121,898 -
Benefits 36,125 35,796 34,794 1,002
Contractual services 925 1,150 1,150 -
Materials and supplies 119,813 72,167 58,518 13,649
273,381 231,011 216,360 14,651
Special Education
Salaries 163,243 170,405 170,405 -
Benefits 57,126 58,442 57,074 1,368
Materials and supplies 73,800 49,065 30,728 18,337
294,169 277,912 258,207 19,705
Other Student Support
Salaries 39,867 40,651 39,620 1,031
Benefits 5,329 5,335 5,145 190
Contractual services 325 4,500 3,750 750
Materials and supplies 4,375 3,275 1,470 1,805
Other charges 925 1,150 1,150 -
50,821 54,911 51,135 3,776
Regular Instruction Support
Salaries 91,059 95,757 93,511 2,246
Benefits 2,964 2,498 1,856 642
Contractual services 6,612 - - -
Materials and supplies - 7,507 6,573 934
Other charges 79,453 47,971 38,811 9,160
180,088 153,733 140,751 12,982
Special Education Suppor
Salaries 10,101 10,203 10,203 -
Benefits 30,827 31,548 30,655 893
Contractual services 23,500 29,715 8,104 21,611
Materials and supplies 15,500 6,000 1,375 4,625
Other charges 61,000 21,200 9,028 12,172
140,928 98,666 59,365 39,301
Technology
Other charges 9,606 9,602 9,602 -
Operation of Plant
Materials and supplies - 7,500 106 7,394
Technical Education
Materials and supplies - 447,485 127,778 319,707
Total education 948,993 1,280,820 863,304 417,516
Net change in fund balances (3)$ (1)$ (133,168) (133,167)$
Fund balances - beginning (54,921)
Fund balances - ending (188,089)$
Budgeted Amounts
91
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SCHOOL NUTRITION FUND
For the Year Ended June 30, 2024
Exhibit B-7
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 382,000$ 382,000$ 535,478$ 153,478$
Federal, state, and local grants 310,700 310,700 463,807 153,107
Other income - - 146 146
Total revenues 692,700 692,700 999,431 306,731
EXPENDITURES:
EDUCATION
Cafeteria
Salaries 302,000 302,696 302,344 352
Benefits 86,700 79,804 69,345 10,459
Contractual services 5,000 3,500 - 3,500
Materials and supplies 296,000 745,496 436,955 308,541
Other charges 3,000 6,182 5,313 869
Total expenditures 692,700 1,137,678 813,957 323,721
Net change in fund balances -$ (444,978)$ 185,474 630,452$
Fund balances - beginning 517,710
Fund balances - ending 703,184$
Budgeted Amounts
92
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SCHOOL DISCRETIONARY GRANTS FUND
For the Year Ended June 30, 2024
Exhibit B-8
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Federal, state, and local grants -$ 171,822$ 163,861$ (7,961)$
EXPENDITURES
EDUCATION
Regular Instruction Support
Other charges - 7,500 7,500 -
Special Education
Salaries - 43,831 41,663 2,168
Benefits - 20,986 17,537 3,449
Materials and supplies - 13,417 11,073 2,344
- 78,234 70,273 7,961
Maintenance of Plant
Capital outlay - - 99,770 (99,770)
Materials and supplies - 86,088 40,288 45,800
- 86,088 140,058 (53,970)
Total education - 171,822 217,831 (46,009)
DEBT SERVICE
Principal - - 28,212 (28,212)
Interest - - 788 (788)
Total debt service - - 29,000 (29,000)
Total expenditures - 171,822 246,831 (75,009)
OTHER FINANCING SOURCES (USES)
Issuance of subscription liability - - 82,970 (82,970)
Net change in fund balances -$ -$ - -$
Fund balances - beginning -
Fund balances - ending -$
Budgeted Amounts
93
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LAKELAND EXTENDED ACTIVITIES PROGRAM FUND
For the Year Ended June 30, 2024
Exhibit B-9
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 280,000$ 280,000$ 274,051$ (5,949)$
Other income - - 25 25
Total revenues 280,000 280,000 274,076 (5,924)
EXPENDITURES:
EDUCATION
Student Services
Salaries 166,000 149,475 145,017 4,458
Benefits 30,900 30,925 15,765 15,160
Contractual services 2,000 2,000 1,000 1,000
Materials and supplies 8,000 8,000 6,186 1,814
206,900 190,400 167,968 22,432
Maintenance of Plant
Salaries 38,000 38,000 33,954 4,046
Benefits 5,100 5,100 4,391 709
Other charges 30,000 46,500 46,500 -
73,100 89,600 84,845 4,755
Total expenditures 280,000 280,000 252,813 27,187
Net change in fund balances -$ -$ 21,263 21,263$
Fund balances - beginning 273,895
Fund balances - ending 295,158$
Budgeted Amounts
94
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SCHOOL CAPITAL PROJECTS FUND
For the Year Ended June 30, 2024
Exhibit B-10
ariance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
REVENUES
Contributions 550,000$ 800,000$ 1,132,665$ 332,665$
Interest income - - 25,672 25,672
Total revenues 550,000 800,000 1,158,337 358,337
EXPENDITURES:
CAPITAL OUTLA
Architectural and engineering - 199,008 124,196 74,812
Construction contracts 5,950,000 3,467,699 3,225,484 242,215
Equipment 1,050,000 583,293 557,703 25,590
Total capital outlay 7,000,000 4,250,000 3,907,383 342,617
Deficiency of revenues
under expenditures (6,450,000) (3,450,000) (2,749,046) 700,954
OTHER FINANCING SOURCES (USES)
Insurance proceeds - - 99,078 99,078
Transfers in 3,663,790 663,790 663,790 -
Total Other Financing Sources 3,663,790 663,790 762,868 99,078
Net change in fund balances (2,786,210)$ (2,786,210)$ (1,986,178) 800,032$
Fund balances - beginning 2,573,542
Fund balances - ending 587,364$
Budgeted Amounts
95
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
DEBT SERVICE FUND
For the Year Ended June 30, 2024
Exhibit B-11
ariance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest income -$ -$ 10$ 10$
EXPENDITURES:
DEBT SERVICE
Principal 1,218,127 1,218,127 1,003,172 214,955
Interest 1,988,626 1,988,626 1,440,238 548,388
Other fees - - 1,451 (1,451)
Bond issuance costs 150,000 150,000 - 150,000
Total expenditures 3,356,753 3,356,753 2,444,861 911,892
Deficiency of revenues
under expenditures (3,356,753) (3,356,753) (2,444,851) 911,902
OTHER FINANCING SOURCES (USES)
Transfers in 3,356,753 3,356,753 2,444,915 (911,838)
Net change in fund balances -$ -$ 64 64$
Fund balances - beginning 54
Fund balances - ending 118$
Budgeted Amounts
96
SUPPORTING SCHEDULES
97
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF TRANSFERS
For the Year Ended June 30, 2024
Exhibit C-1
Transfers In Transfers Out
Major Funds
General Fund
General Purpose School Fund -$ 740,595$
Debt Service Fund - 2,444,915
State Street Aid Fund - 1,967,236
Solid Waste Fund - 275,000
- 5,427,746
General Purpose School Fund
General Fund 740,595 -
School Capital Projects Fund - 663,790
740,595 663,790
Total major funds 740,595 6,091,536
Nonmajor Funds
State Street Aid Fund
General Fund 1,967,236 -
Solid Waste Fund
General Fund 275,000 -
School Capital Projects Fund
General Purpose School Fund 663,790 -
Debt Service Fund
General Fund 2,444,915 -
Total nonmajor funds 5,350,941 -
Total transfers 6,091,536$ 6,091,536$
98
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF INTERFUND RECEIVABLES AND PAYABLES
For the Year Ended June 30, 2024
Exhibit C-2
Receivable From Payable To
Major Funds
General Fund
School General Purpose Fund -$ 67,613$
State Street Aid Fund - 4,962
Solid Waste Fund 138,010 -
Storm Water fund 189,751 -
Sewer Fund 1,024,354 -
1,352,115 72,575
School General Purpose Fund
General Fund 67,613 -
School Federal Projects Fund 212,506 -
School Discretionary Grants Fund 8,027 -
288,146 -
Sewer Fund
General Fund - 1,024,354
School Capital Projects Fund - -
- 1,024,354
Total major funds 1,640,261 1,096,929
Nonmajor Funds
State Street Aid Fund
General Fund 4,962 -
Solid Waste Fund 8,159 -
Solid Waste Fund
General Fund - 138,010
State Street Aid Fund - 8,159
Storm Water fund
General Fund - 189,751
School Federal Projects Fund
School General Purpose Fund - 212,506
School Discretionary Grants Fund
School General Purpose Fund - 8,027
Total nonmajor funds 13,121 556,453
Total interfund receivables and payables 1,653,382$ 1,653,382$
99
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF PRINCIPAL AND INTEREST REQUIREMENTS - GENERAL OBLIGATION BONDS AND NOTES PAYABLE
GOVERNMENTAL FUNDS
June 30, 2024
Exhibit C-3
Principal Interes Principal Interes Principal Interes Principal Interes Principal Interes Principal Interes
2025 67,932$ 22,980$ 111,27$ 1,399$ 89,188$ 104,931$ 164,82$ 193,92$ 154,74$ 239,63$ 153,18$ 237,21$
2026 69,228 21,600 56,328 49 91,083 103,03 168,331 190,421 158,17 236,20 156,57 233,821
2027 70,548 20,208 - - 93,018 101,10 171,90 186,84 162,131 232,252 160,49 229,90
2028 71,892 18,768 - - 94,99 99,123 175,561 183,191 165,76 228,61 164,091 226,30
2029 73,260 17,316 - - 97,014 97,10 179,292 179,46 170,73 223,64 169,01 221,38
2030 74,664 15,828 - - 99,07 95,043 183,102 175,65 174,59 219,78 172,83 217,56
2031 76,080 14,316 - - 101,181 92,938 186,99 171,75 178,962 215,421 177,15 213,24
2032 77,532 12,780 - - 103,331 90,788 190,96 167,78 183,04 211,33 181,20 209,19
2033 79,008 11,208 - - 105,52 88,592 195,02 163,72 188,391 205,99 186,48 203,912
2034 80,520 9,600 - - 107,76 86,350 199,16 159,58 192,722 201,661 190,77 199,62
2035 82,056 7,968 - - 110,05 84,059 203,401 155,351 197,54 196,84 195,54 194,85
2036 83,616 6,300 - - 112,39 81,721 207,72 151,02 202,12 192,25 200,08 190,31
2037 85,212 4,608 - - 114,78 79,332 212,13 146,61 207,87 186,50 205,77 184,62
2038 86,832 2,880 - - 117,22 76,893 216,64 142,10 212,72 181,65 210,58 179,82
2039 88,488 1,128 - - 119,71 74,402 221,24 137,50 218,04 176,33 215,84 174,55
2040 7,569 13 - - 122,26 71,858 225,951 132,801 223,18 171,19 220,93 169,46
2041 - - - - 124,85 69,260 230,752 128,00 229,381 165,00 227,06 163,33
2042 - - - - 127,512 66,607 235,65 123,09 234,812 159,571 232,44 157,95
2043 - - - - 130,221 63,897 240,66 118,08 240,682 153,701 238,251 152,14
2044 - - - - 132,98 61,130 245,77 112,97 246,42 147,95 243,93 146,46
2045 - - - - 135,81 58,304 251,00 107,752 253,12 141,26 250,56 139,83
2046 - - - - 138,701 55,418 256,33 102,41 259,18 135,19 256,57 133,82
2047 - - - - 141,64 52,470 261,781 96,971 265,66 128,71 262,98 127,41
2048 - - - - 144,65 49,460 267,34 91,408 272,08 122,29 269,33 121,062
2049 - - - - 147,732 46,386 273,02 85,727 279,32 115,06 276,502 113,89
2050 - - - - 150,871 43,247 278,82 79,92 286,09 108,28 283,20 107,19
2051 - - - - 154,07 40,041 284,752 74,000 293,24 101,13 290,28 100,11
2052 - - - - 157,352 36,767 290,80 67,949 300,40 93,977 297,372 93,028
2053 - - - - 160,69 33,423 296,982 61,770 308,24 86,137 305,13 85,266
2054 - - - - 164,11 30,008 303,29 55,459 315,79 78,589 312,60 77,79
2055 - - - - 167,59 26,521 309,73 49,014 323,68 70,694 320,42 69,980
2056 - - - - 171,15 22,960 316,32 42,432 331,66 62,716 328,31 62,083
2057 - - - - 174,79 19,323 323,042 35,710 340,17 54,210 336,73 53,663
2058 - - - - 178,51 15,608 329,90 28,846 348,57 45,806 345,05 45,343
2059 - - - - 182,30 11,81 336,91 21,83 357,292 37,091 353,68 36,716
2060 - - - - 186,17 7,941 344,07 14,676 366,17 28,210 362,47 27,92
2061 - - - - 187,50 3,985 346,54 7,364 375,41 18,970 371,621 18,778
2062 - - - - - - - - 384,25 9,619 380,36 9,522
1,174,43$ 187,501$ 167,60$ 1,448$ 4,937,91$ 2,241,84$ 9,125,80$ 4,143,16$ 9,602,49$ 5,383,55$ 9,505,50$ 5,329,17$
(1) Payable from General Purpose School Fund, but backed by full faith and credit of City.
CONTINUED ON THE NEXT PAGE
General Obligation
Refunding Bond 1
Series 2021 Series 2022
Refunding Bond 2
2011 TLDA
Construction Loan Refunding Bond I
General Obligation
Series 2022
General Obligation
Refunding Bond 2
General Obligation
Series 2021
Settlement(1)Shelby County
100
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF PRINCIPAL AND INTEREST REQUIREMENTS - GENERAL OBLIGATION BONDS AND NOTES PAYABLE
GOVERNMENTAL FUNDS
June 30, 2024
Exhibit C-3
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
Principal Interes Principal Interes Principal Interes Principal Interes
151,622$ 234,79$ 123,53$ 191,29$ 123,52$ 191,28$ 1,139,83$ 1,417,45$
154,981 231,43 126,27 188,56 126,262 188,54 1,107,23 1,393,67
158,85 227,56 129,42 185,40 129,41 185,391 1,075,79 1,368,66
162,41 223,99 132,32 182,501 132,32 182,49 1,099,37 1,344,99
167,29 219,12 136,29 178,531 136,29 178,52 1,129,19 1,315,08
171,07 215,34 139,37 175,452 139,36 175,44 1,154,08 1,290,111
175,34 211,06 142,862 171,96 142,85 171,95 1,181,431 1,262,671
179,351 207,06 146,12 168,70 146,11 168,69 1,207,67 1,236,35
184,58 201,831 150,38 164,44 150,38 164,43 1,239,79 1,204,13
188,82 197,58 153,84 160,98 153,83 160,972 1,267,46 1,176,36
193,54 192,86 157,69 157,13 157,68 157,12 1,297,52 1,146,20
198,04 188,37 161,35 153,47 161,34 153,46 1,326,69 1,116,93
203,67 182,741 165,94 148,88 165,932 148,87 1,361,33 1,082,19
208,431 177,98 169,81 145,012 169,80 145,00 1,392,06 1,051,35
213,642 172,77 174,06 140,76 174,052 140,75 1,425,10 1,018,221
218,67 167,74 178,16 136,66 178,15 136,65 1,374,88 986,401
224,74 161,66 183,111 131,71 183,09 131,71 1,403,01 950,69
230,06 156,34 187,44 127,38 187,43 127,37 1,435,36 918,33
235,82 150,59 192,13 122,69 192,12 122,68 1,469,89 883,81
241,45 144,96 196,72 118,11 196,70 118,102 1,504,01 849,69
248,00 138,41 202,061 112,76 202,04 112,761 1,542,61 811,09
253,952 132,46 206,90 107,92 206,892 107,91 1,578,54 775,16
260,301 126,11 212,07 102,751 212,06 102,74 1,616,52 737,182
266,58 119,82 217,201 97,628 217,18 97,623 1,654,40 699,30
273,68 112,73 222,97 91,851 222,96 91,84 1,696,20 657,50
280,31 106,101 228,38 86,44 228,37 86,439 1,736,06 617,64
287,32 99,093 234,09 80,73 234,07 80,730 1,777,85 575,85
294,33 92,078 239,80 75,020 239,79 75,01 1,819,87 533,83
302,01 84,396 246,06 68,761 246,052 68,757 1,865,19 488,51
309,41 77,001 252,09 62,736 252,07 62,732 1,909,38 444,32
317,15 69,266 258,39 56,434 258,37 56,430 1,955,36 398,33
324,96 61,449 264,76 50,06 264,74 50,062 2,001,941 351,76
333,301 53,11 271,55 43,27 271,53 43,272 2,051,14 302,56
341,53 44,880 278,26 36,566 278,24 36,563 2,100,09 253,612
350,07 36,342 285,22 29,609 285,202 29,607 2,150,69 203,01
358,77 27,640 292,30 22,520 292,291 22,518 2,202,27 151,43
367,82 18,586 299,68 15,143 299,66 15,142 2,248,26 97,968
376,48 9,425 306,74 7,679 306,72 7,678 1,754,56 43,923
9,408,50$ 5,274,79$ 7,665,50$ 4,297,59$ 7,665,021$ 4,297,32$ 59,252,79$ 31,156,39$
Total
Series 2022 Series 2022
General Obligation
Refunding Bond 5
General Obligation
Refunding Bond 4
Series 2022
General Obligation
Refunding Bond 3
101
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF PRINCIPAL AND INTEREST REQUIREMENTS - REVENUE BONDS
SEWER FUND
June 30, 2024
Exhibit C-4
Fiscal Year Principal Interest Principal Interest Principal Interest Principal Interest
2025 688,000$ 3,089$ -$ -$ -$ -$ 688,000$ 3,089$
2026 716,000 1,575 - - - - 716,000 1,575
2027 - - - - - - - -
2028 - - - - - - - -
2029 - - - - - - - -
2030 - - - - - - - -
2031 - - - - - - - -
2032 - - - - - - - -
2033 - - - - - - - -
2034 - - - - - - - -
2035 - - - - - - - -
2036 - - - - - - - -
2037 - - - - - - - -
2038 - - - - - - - -
2039 - - - - - - - -
2040 - - - - - - - -
2041 - - - - - - - -
2042 - - 5,042,702 - - - 5,042,702 -
1,404,000$ 4,664$ 5,042,702$ -$ -$ -$ 6,446,702$ 4,664$
(1) Variable interest rate as of June 30, 2024 was 3.35%.
(2) Interim financing loan. No payments due until refinancing or maturity date.
(3) No amounts have been drawn on loan at June 30, 2024.
Series 2022
TN State Revolving Fund
Note Payable (3)Total
TN Municipal League
Series 2005
Note Payable (1)
Series 2022
TN State Revolving Fund
Note Payable (2)
102
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF CHANGES IN LONG-TERM DEBT BY INDIVIDUAL ISSUE
For the Year Ended June 30, 2024
Exhibit C-5
Original Outstanding Issued Paid and/or Refunded Outstanding
Amount of Interest Date Maturity as of During Matured During as of
Description of Indebtedness Issue Rate of Issue Date 6/30/2023 Period During Period Period 6/30/2024
GOVERNMENTAL ACTIVITIES
Other Loans Payable
Payable through Debt Service Fund
TLDA Construction Loan 1,725,000$ 1.89% 11/10/2010 7/20/2039 1,241,104$ -$ 66,667$ -$ 1,174,437$
Shelby County Settlement Liability 676,044$ 0.50% 5/31/2014 11/1/2025 167,603 - - - 167,603
Total other loans payable 1,408,707 - 66,667 - 1,342,040
General Obligation
Payable through Debt Service Fund
G.O. Refunding Bond 1, Series 2021 5,194,500$ 2.125% 1/27/2021 1/27/2061 5,025,250 - 87,332 - 4,937,918
G.O. Refunding Bond 2, Series 2021 9,600,000$ 2.125% 1/27/2021 1/27/2061 9,287,208 - 161,399 - 9,125,809
G.O. Refunding Bond 1, Series 2022 9,900,000$ 2.50% 6/22/2022 6/22/2062 9,753,117 - 150,622 - 9,602,495
G.O. Refunding Bond 2, Series 2022 9,800,000$ 2.50% 6/22/2022 6/22/2062 9,654,601 - 149,101 - 9,505,500
G.O. Refunding Bond 3, Series 2022 9,700,000$ 2.50% 6/22/2022 6/22/2062 9,556,084 - 147,579 - 9,408,505
G.O. Refunding Bond 4, Series 2022 7,903,000$ 2.50% 6/22/2022 6/22/2062 7,785,746 - 120,240 - 7,665,506
G.O. Refunding Bond 5, Series 2022 7,902,500$ 2.50% 6/22/2022 6/22/2062 7,785,253 - 120,232 - 7,665,021
58,847,259 - 936,505 - 57,910,754
Total governmental activities 60,255,966$ -$ 1,003,172$ -$ 59,252,794$
BUSINESS-TYPE ACTIVITIES
Revenue Notes Payable
Payable through Sewer Fund
TN Municipal League Note, Series 2005 11,000,000$ 3.98%* 6/1/2006 5/25/2026 2,065,000$ -$ 661,000$ -$ 1,404,000$
TN State Revolving Fund, Series 2022 5,042,702$ 2.86% 5/2/2022 5/30/2042 - 5,042,702 - - 5,042,702
TN State Revolving Fund, Series 2022 -$ 3.35% 9/20/2023 6/30/2044 - - - - -
Total business-type activities 2,065,000$ 5,042,702$ 661,000$ -$ 6,446,702$
* Variable rate Tennessee Municipal Bond Fund loan rate for June 30, 2024 was 3.98%.
103
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF CHANGES IN PROPERTY TAXES RECEIVABLE - BY LEVY YEAR
For the Year Ended June 30, 2024
Exhibit C-6
Year of Balance Adjustments/ Collections/ Balance
Levy June 30, 2023 Assessment Abatements Refunds June 30, 2024
2024 -$ $5,963,236 -$ $ 5,963,236$
2023 5,880,668 - 8,333 (5,805,591) 83,410
2022 42,453 - 4,130 (24,675) 21,908
2021 5,327 - 4,633 (2,571) 7,389
2020 2,056 - 494 (100) 2,450
2019 458 - 253 (193) 518
2018 375 - 327 (134) 568
2017 814 - 255 (36) 1,033
2016 150 - 392 (38) 504
2015 6 - 487 (30) 463
2014 303 - - - 303
Total 5,932,610 5,963,236 19,304 (5,833,368) 6,081,782
Allowance for uncollectible
property taxes (61,614) (65,559)
Net receivables 5,870,996$ 6,016,223$
Year of Total Assessed Tax Rate
Levy Valuation per $100 Levy
2024 501,112,285$ 1.19$ 5,963,236$
2023 494,173,867 1.19 5,880,669
2022 475,665,753 1.04 4,946,925
2021 454,811,396 1.04 4,730,039
2020 369,153,978 1.24 4,577,509
2019 362,023,970 1.24 4,489,097
2018 355,154,200 1.25 4,439,428
2017 353,143,290 1.25 4,414,291
2016 318,045,649 1.40 4,452,639
2015 313,448,157 1.40 4,388,274
The City files delinquent property taxes with the Chancery Court on the first business day of April each year for
property taxes receivable aged over two years.
DELINQUENT PROPERTY TAXES
PROPERTY TAX RATES AND ASSESSMENTS - LAST 10 YEARS
CHANGES IN PROPERTY TAXES RECEIVABLE BY LEVY YEAR
104
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF OFFICIAL BONDS OF PRINCIPAL OFFICIALS
For the Year Ended June 30, 2024
Exhibit C-7
Amount of Bond
Mayor 10,000$
Commissioners (each)10,000
City Manager 10,000
Finance and Human Resources Director 10,000
City Recorder 10,000
Finance and Inventory Clerk 10,000
Community Services Representative 10,000
Senior Center Manager 10,000
Receptionist 10,000
Human Resources Generalist 10,000
Lakeland School System Superintendent 1,000,000
City employees are covered under the City's insurance policy for dishonesty, forgery,
alterations, theft, disappearance or destruction, and computer fraud subject to a $1,000
deductible. The City of Lakeland also maintains additional fidelity insurance against employee
theft up to $3,000,000 with a $35,000 retention amount. Lakeland School System employees
are covered by a blanket bond.
105
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF UTILITY RATE STRUCTURE AND NUMBER OF CUSTOMERS
For the Year Ended June 30, 2024
Exhibit C-8
SEWER:
Number of Customers as of June 30, 2024:4,362
Gallons Used / 1 CCF = 748.052 gallons
MLGW measures by CCF not gallons
Residential City Sewer Rates
Minimum Monthly Bill $28,77
Volumetric Rate $2.08/ccf
Commercial City Sewer Rates
Minimum Monthly Bill (based on meter size), plus Volumetric Rate $2.08/ccf
Meter Size
(Inches)
Max Flow Rater
(GPM) Multiplier Minimum bill ($)$/ccf
5/8 & 3/4 20 1 28.77$ 2.08$
1 50 2.5 71.93 2.08
11/2 100 5 143.85 2.08
2 160 8 230.16 2.08
3 500 25 719.25 2.08
4 1,000 50 1,438.50 2.08
6 1,600 80 2,301.60 2.08
8 2,800 140 4,027.80 2.08
10 4,400 220 6,329.40 2.08
SANITATION:
Number of Customers as of June 30, 2024:4,599
Rate Type Monthly Charge
Residential 24.70$
STORM WATER:
Number of Customers as of June 30, 2024:5,253
Rate Type Monthly Charge
Residential 3.20$
Commercial Rates (Per Month)
106
STATISTICAL SECTION (UNAUDITED)
107
CITY OF LAKELAND, TENNESSEE
STATISTICAL SECTION - TABLE OF CONTENTS
Contents Exhibit Pa e
Net Position b Componen D-1 110
Chan es in Net Position D-2 111
Fund Balances of Governmental Funds D-3 113
Chan es in Fund Balances – Governmental Funds D-4 114
Revenues b Fiscal Year – General Fund D-5 115
Revenues, Expenditures, and Chan es in Fund Balance – General Fund D-6 116
ssessed Value and Estimated Actual Value of Taxable Propert D-7 117
nal sis of Value of Taxable Propert – Current Fiscal Yea D-8 118
Direct and Overlappin Propert Tax Rates D-9 119
Principal Propert Tax Pa er D-10 120
Propert Tax Levies and Collection D-11 121
Sales Tax b Fiscal Yea D-12 122
Direct and Overlappin Sales Tax Rates D-13 123
Taxable Sales b Cate or D-14 124
Local Sales Tax Revenue b Industr D-15 125
Ratios of Outstandin Debt b T p D-16 126
Ratios of General Bonded Deb D-17 127
Direct and Overlappin Debt – Governmental Activitie D-18 128
Demo raphics and Economic Indicators D-19 129
Principal Emplo ers D-20 130
Full-Time Equivalent Emplo ees b Fund and Functio D-21 131
Operatin Indicators b Function D-22 132
Capital Assets Statistics b Function D-23 133
Operating Information – These exhibits contain information about the City’s operations and
resources to help the reader understand how the City’s financial information relates to the
services the City provides and the activities it performs.
Sources:Unless otherwise noted, the information in these exhibits is derived from the annual financial reports for
the relevant year.
This part of the City of Lakeland’s annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health.
Financial Trends – These exhibits contain trend information to help the reader understand
how the City’s financial performance and well-being have changed over time.
Revenue Capacity – These exhibits contain information to help the reader assess the factors
affecting the City’s ability to generate its property and sales taxes.
Debt Capacity – These exhibits 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 – These exhibits offer demographic and
economic indicators to help the reader understand the environment within which the City’s
financial activities take place, as a means of comparisons over time and with other
governments.
108
CITY OF LAKELAND, TENNESSEE
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual basis of accounting)
Exhibit D-1
As of
June 30, 2024
As of
June 30, 2023
As of
June 30, 2022
As of
June 30, 2021
As of
June 30, 2020
As of
June 30, 2019
As of
June 30, 2018
As of
June 30, 2017
As of
June 30, 2016
As of
June 30, 2015
Governmental Activitie
Net investment in capital assets 77,101,130$ $73,163,543 $68,900,757 54,438,834$ 49,245,341$ 46,769,191$ 44,863,094$ 42,975,044$ 41,237,807$ 41,723,002$
Restricted 12,006,318 10,846,427 8,766,467 3,103,811 3,441,131 3,408,097 8,135,361 8,288,185 1,708,500 -
Unrestricted 9,292,325 16,059,896 14,861,814 18,014,433 16,830,765 14,429,273 5,843,072 5,931,344 11,045,961 10,783,417
Total Governmental Activitie 98,399,773$ 100,069,866$ 92,529,038$ 75,557,078$ 69,517,237$ 64,606,561$ 58,841,527$ 57,194,573$ 53,992,268$ 52,506,419$
Business-Type Activitie
Net investment in capital assets 14,897,423$ $13,571,660 $12,145,664 11,103,421$ 9,941,763$ 9,462,547$ 8,335,618$ 8,024,603$ 7,548,065$ 7,411,864$
Restricted - - - - 2,817 - 16,320 - - -
Unrestricted (736,243) 341,947 1,362,790 1,735,313 2,372,034 1,913,569 1,864,756 1,602,169 1,610,174 1,519,980
Total Business-Type Activitie 14,161,180$ 13,913,607$ 13,508,454$ 12,838,734$ 12,316,614$ 11,376,116$ 10,216,694$ 9,626,772$ 9,158,239$ 8,931,844$
Primary Governmen
Net investment in capital assets 91,998,553$ $86,735,203 81,046,421$ 65,542,255$ 59,187,104$ 56,231,738$ 53,198,712$ 50,999,647$ 48,785,872$ 49,134,866$
Restricted 12,006,318 10,846,427 8,766,467 3,103,811 3,443,948 3,408,097 8,151,681 8,288,185 1,708,500 -
Unrestricted 8,556,082 16,401,843 16,224,604 19,749,746 19,202,799 16,342,842 7,707,828 7,533,513 12,656,135 12,303,397
112,560,953$ 113,983,473$ 106,037,492$ 88,395,812$ 81,833,851$ 75,982,677$ 69,058,221$ 66,821,345$ 63,150,507$ 61,438,263$
Source: Annual audited financial statements for each of the fiscal years presented above, as originally reported. Prior period adjustments, if any, are not reflected.
Total Primary Governmen
109
CITY OF LAKELAND, TENNESSEE
CHANGES IN NET POSITION
Last Ten Fiscal Years Ended June 30
(Accrual basis of accounting)
Exhibit D-2
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
EXPENSE
Governmental Activities
General government 5,386,179$ 2,448,002$ 2,280,602$ 2,073,494$ 1,615,102$ 2,241,345$ 2,444,545$ 1,984,530$ 1,663,019$ 1,460,316$
Community services 1,179,351 1,051,168 839,141 562,646 1,036,685 - - - - -
Public safet - - - - - - - - - 2,252
Public work 7,560,961 6,389,408 4,573,665 4,719,674 4,063,106 5,237,019 5,310,397 5,524,380 4,845,979 4,420,595
Parks and recreation 1,338,097 1,188,121 1,045,805 513,748 505,085 603,062 493,440 680,872 435,148 305,885
Natural resources - - - - - - - - - -
Education 30,340,419 27,190,110 19,931,522 19,838,831 17,971,699 15,648,246 15,526,261 8,866,714 9,452,381 6,980,701
Debt issuance costs - - 152,380 34,000 - - - 32,158 214,684 -
Interest on long-term debt 1,233,330 1,287,073 760,617 1,185,980 1,141,192 706,464 723,878 120,027 52,145 50,664
Total governmental activities 47,038,337 39,553,882 29,583,732 28,928,373 26,332,869 24,436,136 24,498,521 17,208,681 16,663,356 13,220,413
Business-Type Activity
Sewe 2,246,757 1,942,728 1,403,653 1,387,998 1,411,827 1,280,582 1,287,702 1,171,287 1,046,611 1,097,001
Total business-type activity 2,246,757 1,942,728 1,403,653 1,387,998 1,411,827 1,280,582 1,287,702 1,171,287 1,046,611 1,097,001
Total primary government expenses 49,285,094$ 41,496,610$ 30,987,385$ 30,316,371$ 27,744,696$ 25,716,718$ 25,786,223$ 18,379,968$ 17,709,967$ 14,317,414$
PROGRAM REVENUE
Governmental Activities
Charges for Services
General government -$ 600$ 400$ 3,606$ 5,328$ 182,005$ 289,925$ 254,125$ 115,735$ 95,372$
Community development 191,725 180,241 268,895 397,838 467,443 - - - - -
Public work 1,588,578 1,562,893 1,566,499 1,508,963 1,465,274 1,450,391 1,438,322 1,450,836 1,411,948 1,397,795
Parks and recreation 170,954 113,671 171,065 155,651 244,630 246,530 254,488 153,810 116,720 55,500
Natural resources - - - - - - - - - -
Education 868,272 736,461 317,854 234,460 477,764 596,144 537,903 370,351 372,705 126,096
Operating grants and contributions 18,502,789 17,512,419 17,719,942 14,131,983 11,177,075 11,016,750 8,958,325 5,718,014 4,967,226 4,550,491 Capital grants and contributions 1,776,358 5,999,299 8,465,404 1,601,883 2,522,360 2,463,353 918,423 1,046,256 171,116 1,016,559
Total governmental activities 23,098,676 26,105,584 28,510,059 18,034,384 16,359,874 15,955,173 12,397,386 8,993,392 7,155,450 7,241,813
Business-Type Activity
Charges for Services
Sewe 2,422,202 1,887,349 1,823,815 1,906,847 2,296,427 1,497,126 1,481,646 1,502,522 1,268,923 1,188,359
Operating grants and contributions 61,372 - - - - - - - - 5,270
Capital grants and contributions - 363,947 244,155 - 41,709 930,093 390,600 133,300 - - Total business-type activity 2,483,574 2,251,296 2,067,970 1,906,847 2,338,136 2,427,219 1,872,246 1,635,822 1,268,923 1,193,629
Total primary government program revenues 25,582,250$ 28,356,880$ 30,578,029$ 19,941,231$ 18,698,010$ 18,382,392$ 14,269,632$ 10,629,214$ 8,424,373$ 8,435,442$
Net (Expense)/Revenue
Governmental activities (23,939,661)$ (13,448,298)$ (1,073,673)$ (10,893,989)$ (9,972,995)$ (8,480,963)$ (12,101,135)$ (8,215,289)$ (9,507,906)$ (5,978,600)$
Business-type activity 236,817 308,568 664,317 518,849 926,309 1,146,637 584,544 464,535 222,312 96,628
Total primary government (23,702,844)$ (13,139,730)$ (409,356)$ (10,375,140)$ (9,046,686)$ (7,334,326)$ (11,516,591)$ (7,750,754)$ (9,285,594)$ (5,881,972)$
(Continued on next page)
110
CITY OF LAKELAND, TENNESSEE
CHANGES IN NET POSITION
Last Ten Fiscal Years Ended June 30
(Accrual basis of accounting)
Exhibit D-2
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
GENERAL REVENUES AND OTHE
CHANGES IN NET POSITION
Governmental Activities
Local taxes 19,398,477$ 17,471,766$ 15,516,666$ 14,281,850$ 12,910,473$ 12,422,859$ 12,054,385$ 9,720,013$ 8,451,536$ 6,639,974$
Intergovernmental revenues 2,074,699 1,860,270 1,912,424 1,854,201 1,573,782 1,593,976 1,545,903 1,587,101 2,897,031 1,771,959
Other revenue 151,613 1,364,077 581,161 324,248 113,589 125,449 61,408 24,941 100,121 42,511
Gain on sale of capital assets - - - - 171 - 172 8,923 - -
Interest on investments 412,659 293,013 35,382 71,153 285,656 103,713 86,221 76,616 43,145 11,947
Insurance proceeds 232,120 - - - - - - - - -
Total governmental activities 22,269,568 20,989,126 18,045,633 16,531,452 14,883,671 14,245,997 13,748,089 11,417,594 11,491,833 8,466,391
Business-Type Activity
Interest on investments 5,417 96,585 5,403 3,271 14,189 12,785 5,378 3,998 4,083 4,311
Other 5,339 - - - - - - - - -
Total business-type activity 10,756 96,585 5,403 3,271 14,189 12,785 5,378 3,998 4,083 4,311
Total primary government 22,280,324$ 21,085,711$ 18,051,036$ 16,534,723$ 14,897,860$ 14,258,782$ 13,753,467$ 11,421,592$ 11,495,916$ 8,470,702$
CHANGE IN NET POSITION
Governmental activities (1,670,093)$ 7,540,828$ 16,971,960$ 5,637,463$ 4,910,676$ 5,765,034$ 1,646,954$ 3,202,305$ 1,983,927$ 2,487,791$
Business-type activity 247,573 405,153 669,720 522,120 940,498 1,159,422 589,922 468,533 226,395 100,939
Total primary government (1,422,520)$ 7,945,981$ 17,641,680$ 6,159,583$ 5,851,174$ 6,924,456$ 2,236,876$ 3,670,838$ 2,210,322$ 2,588,730$
111
CITY OF LAKELAND, TENNESSEE
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
Exhibit D-3
As of
June 30, 2024
s of
June 30, 2023
s of
June 30, 2022
s of
June 30, 2021
s of
June 30, 2020
s of
June 30, 2019
s of
June 30, 2018
s of
June 30, 2017
s of
June 30, 2016
s of
June 30, 2015
General Fund
Nonspendabl 2,861$ 2,256,00$ 1,004$ 1,660$ 320,00$ 69,998$ -$ 66$ -$ -$
Restricted - - 81,198 172,54 172,41 - - - - -
Committed 350,572 1,216,82 1,297,372 1,612,13 1,478,91 1,087,61 523,43 430,07 408,71 395,76
ssigned 234,82 854,82 604,82 1,770,00 1,340,35 214,83 259,97 2,617,69 2,404,22 496,27
Unassigne 6,948,58 9,481,56 8,191,51 7,731,48 8,588,342 8,778,081 7,756,90 7,529,53 8,110,37 6,674,86
Total General Fund 7,536,84$ 13,809,221$ 10,175,91$ 11,287,831$ 11,900,03$ 10,150,52$ 8,540,30$ 10,577,37$ 10,923,32$ 7,566,90$
General Purpose School Fun
Nonspendabl 599$ -$ -$ 1,857$ -$ -$ -$ -$ -$ -$
Restricted 7,049,03 6,326,92 6,190,72 138,33 67,631 30,024 - - - -
Committed - - - - - - - - - -
ssigned - - - 8,723,84 6,989,44 6,136,22 4,326,76 2,795,47 1,865,63 721,39
Total General Purpose School Fun 7,049,63$ 6,326,92$ 6,190,72$ 8,864,03$ 7,057,07$ 6,166,24$ 4,326,76$ 2,795,47$ 1,865,63$ 721,39$
School Federal Projects Fun
Restricted 889$
School Capital Projects Fun
Restricted 2,573,542$ 8,084,48$ 23,376,22$ 43,394,431$ 996,10$ 6,399,351$ 6,602,13$ 20,601,66$
Total School Capital Projects Fun 2,573,542$ 8,084,48$ 23,376,22$ 43,394,431$ 996,10$ 6,399,351$ 6,602,13$ 20,601,66$
Debt Service FundCommitted 54$ 45$ 42$ 42$
Total Debt Service Fun 54$ 45$ 42$ 42$
Non-Major Governmental Fund
Nonspendabl -$ 6,213$ 4,553$ 13,025$ -$ -$ -$ -$ -$ -$
Restricted 2,548,67 1,821,87 1,914,26 1,352,462 1,369,85 1,752,58 1,564,10 1,852,19 998,42 * 767,29 *Committed 1,241,82 2,115,55 2,825,68 555,57 294,322 380,34 923,49 239,88 395,01 *-
ssigned - - - - - - - - - 1,249,47
Unassigne (250,795) (54,921) - - - - - - (2,346) -
Total Non-Major Governmental Fund 3,539,70$ 3,888,72$ 4,744,50$ 1,921,062$ 1,664,17$ 2,132,92$ 2,487,60$ 2,092,081$ 1,391,08$ 2,016,76$
All Governmental Funds (excluding General
Nonspendabl 599$ 6,213$ 4,553$ 14,882$ -$ -$ -$ -$ -$ -$
Restricted 9,597,71 10,722,341 16,190,37 24,867,01 44,831,91 2,778,722 * 7,963,45 * 8,454,332 * 21,600,08 * 767,29 *
Committed 1,241,82 2,115,60 2,825,72 555,61 294,36 380,34 * 923,49 * 239,88 395,01 -
ssigned - - - 8,723,84 6,989,44 6,136,22 4,326,76 2,795,47 1,865,63 1,970,86
Unassigne (250,795) (54,921) - - - - - - (2,346) -
10,589,34$ 12,789,24$ 19,020,65$ 34,161,36$ 52,115,72$ 9,295,28$ 13,213,71$ 11,489,69$ 23,858,37$ 2,738,162$
Source:
Notes: Information is presented as of June 30th of each fiscal year ended
* Reclassified from original reports to match correct presentation
Total All Governmental Funds (excluding General
Annual audited financial statements for each of the fiscal years presented above, as originally reported. Prior period adjustments, if any, are not reflected.
Further information on increases and decreases in fund balance for each year may be found in the audited financial statements for the associated fiscal year end.
The General Fund is always a major fund. Other funds are only shown individually above in fiscal years in which they were classified as a major governmental fund.
112
CITY OF LAKELAND, TENNESSEE
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years Ended June 30
(Modified accrual basis of accounting)
Exhibit D-4
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
REVENUES
Property taxes 12,000,408$ 10,591,634$ 9,727,528$ 9,562,609$ 9,028,947$ 8,870,195$ 8,632,865$ 7,102,514$ 6,515,877$ 4,822,446$
Local sales taxes 7,319,841 6,840,248 5,671,295 4,752,798 3,893,516 3,575,127 3,300,271 2,497,650 1,948,981 1,739,951
Intergovernmental 17,283,432 14,061,005 13,050,017 12,686,966 11,948,467 11,838,064 10,009,710 6,717,032 7,495,060 5,971,888
Licenses and permits 197,325 182,990 274,995 353,234 125,308 100,172 63,233 59,323 108,980 95,372
Charges for services 2,622,204 2,410,876 2,049,718 1,947,284 2,535,131 2,374,898 2,457,405 2,169,799 1,901,373 1,579,391
Federal, state, and local grants 2,072,800 10,181,945 12,608,248 3,866,072 1,636,354 1,378,668 1,736,605 1,208,351 556,439 1,472,901
Contributions 1,132,665 508,352 197,273 487,886 1,261,019 - - - - -
Interest on investments 412,659 293,013 35,382 71,153 285,656 103,713 86,221 76,616 43,145 11,947
Other 151,613 1,372,882 587,755 327,748 119,049 128,349 65,148 25,251 105,621 48,011
Total revenues 43,192,947 46,442,945 44,202,211 34,055,750 30,833,447 28,369,186 26,351,458 19,856,536 18,675,476 15,741,907
EXPENDITURES
Current Expenditures
General government 4,871,053 2,092,548 2,053,705 1,794,134 1,365,546 2,283,517 3,864,019 2,861,943 1,817,676 1,332,988
Community development 1,128,616 1,000,433 834,821 558,326 981,344 - - - - -
Public safety - - -- - - - - - 2,252
Public works 5,888,610 4,869,441 3,183,712 3,386,831 2,725,517 3,319,058 3,081,684 3,405,316 1,955,349 1,719,547
Parks and recreation 1,136,620 1,005,529 896,583 436,158 433,545 587,539 423,320 607,642 449,309 240,813
Natural resources - - -- - - - - - -
Education 27,573,549 24,415,905 21,579,685 18,996,284 17,147,617 15,371,530 14,108,658 8,476,688 7,440,841 7,248,913
Debt Service
Principal 1,143,172 8,284,230 2,099,849 3,175,823 2,086,610 2,011,071 1,972,858 1,856,902 413,323 402,337
Interest and fiscal charges 1,444,833 1,502,297 1,008,783 1,422,686 1,373,774 925,531 921,197 922,883 653,755 49,295
Bond issuance costs - - 152,380 34,000 - - - - - -
Capital outlays 10,581,774 12,966,273 31,870,938 23,664,950 3,649,717 6,647,031 3,738,806 14,636,872 3,968,571 1,426,460
Total expenditures 53,768,227 56,136,656 63,680,456 53,469,192 29,763,670 31,145,277 28,110,542 32,768,246 16,698,824 12,422,605
Excess (deficiency) of revenues
over (under) expenditures (10,575,280) (9,693,711) (19,478,245) (19,413,442) 1,069,777 (2,776,091) (1,759,084) (12,911,710) 1,976,652 3,319,302
OTHER FINANCING SOURCES (USES)
Issuance of debt - 7,015,747 3,155,308 - 43,500,000 467,483 1,185,948 188,105 20,000,000 91,643
Issuance of SBITA 725,097 80,749 - - - - - - - -
Issuance of refunding debt - - 43,569,420 14,794,500 - - - - - -
Insurance proceeds 232,120 - - - - - - - - -
Payment to refunded bond escrow agent - - (43,500,000) (14,350,000) - - - - - -
Premium on debt issuance - - - - - - - - 2,499,981 -
Sale of capital assets - - - - 171 396 260,142 8,923 - -
Transfers in 6,091,536 13,288,979 56,655,283 22,318,351 48,284,992 4,268,340 7,181,395 4,461,554 24,335,102 1,994,722
Transfers out (6,091,536) (13,288,979) (56,655,283) (22,318,351) (48,284,992) (4,268,340) (7,181,395) (4,461,554) (24,335,102) (1,994,722)
Total other financing sources (uses)957,217 7,096,496 3,224,728 444,500 43,500,171 467,879 1,446,090 197,028 22,499,981 91,643
Net change in fund balances (9,618,063)$ (2,597,215)$ (16,253,517)$ (18,968,942)$ 44,569,948$ (2,308,212)$ (312,994)$ (12,714,682)$ 24,476,633$ 3,410,945$
Debt service as a percentage of
noncapital expenditures 6.0%22.3%10.9%15.5%13.3%12.3%12.6%17.5%9.0% 4.3%
113
CITY OF LAKELAND, TENNESSEE
REVENUES BY FISCAL YEAR - GENERAL FUND
Last Ten Fiscal Years Ended June 30
(Modified accrual basis of accounting)
Exhibit D-5
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
REVENUES
Property Taxes
Property taxes 5,816,805$ 4,886,569$ 4,676,813$ 4,583,771$ 4,385,969$ 4,404,320$ 4,385,265$ 4,556,460$ 4,199,800$ 2,646,911$
Personalty taxes 38,334 39,135 35,095 34,113 13,123 17,787 19,049 23,637 23,465 19,556
Interest and penalties 7,116 12,134 11,571 13,458 12,375 9,184 9,772 14,850 14,153 10,433
Utility tax 17,600 15,987 16,665 17,385 7,410 6,342 7,747 14,188 24,256 11,332
Local Sales Taxes
Local sales tax 2,872,573 2,753,513 2,272,299 1,740,852 1,412,224 1,202,495 1,111,683 1,129,714 1,113,235 944,265
Wholesale beer and liquor tax 235,345 206,375 125,859 117,939 96,025 91,344 84,453 84,610 42,754 120,272
Business tax 161,230 144,330 140,432 113,536 87,299 89,615 98,175 83,758 76,994 73,140
Room occupancy tax 95,875 96,134 89,910 74,369 61,069 79,384 47,745 59,501 63,455 61,889
CATV franchise tax 119,857 134,665 140,680 141,043 145,020 146,755 148,500 149,472 148,102 146,346
Other revenue 31,149 29,621 19,327 12,610 - - - - - -
Intergovernmental
Sales tax 1,707,602 1,654,194 1,572,882 1,318,779 1,132,436 1,102,437 1,059,342 1,030,176 1,005,384 941,407
Income tax (Hall)- 2,078 3,623 62,071 102,215 131,374 135,311 143,984 192,645 193,766
Beer and liquor tax 51,037 14,775 1,125 6,268 5,823 5,754 10,918 6,521 8,752 6,573
State road maintenance 28,024 25,472 25,420 24,677 24,677 24,681 25,009 25,106 25,288 25,357
Payments in lieu of tax - TVA 265,858 277,672 257,889 267,643 288,084 307,247 309,880 292,083 293,085 238,635
Other state revenue - - -- 4,899 4,636 5,443 926 1,056 1,217
Licenses and Permits
Building permit fees 47,280 85,781 98,939 173,090 112,368 64,375 48,261 44,759 31,023 49,345
Engineering Fees 43,100 19,900 59,150 61,651 * 93,767 * 30,200 * 79,000 * 31,900 * 17,900 * 8,800
dministrative fees - developments 55,288 20,005 58,044 50,512 * 67,722 * 27,758 * 115,650 * 170,335 * 31,960 * 5,200
Other permits - general government - 600 400 3,296 - - - - - -
Other permits - parks and recreation 5,600 2,149 5,700 6,637 - - - - - -
Other permits - community service 46,057 54,555 52,762 58,048 12,940 35,797 14,972 16,064 13,457 12,527
Charges for Services
General government - - -310 5,328 - - - - -
Other fees - - -54,537 180,646 23,875 70,184 45,405 13,707 20,411
Recreation fees 99,211 93,169 85,476 86,908 121,246 196,354 106,941 103,437 57,124 14,152
Parks development fees 32,964 (6,847) 45,379 46,528 107,402 19,371 103,257 25,660 14,948 -
Rental income 33,179 25,200 34,510 15,578 15,982 30,805 44,290 24,698 48,781 40,437
Federal, State, and Local Grants
Operating grants 351,650 3,857,848 591,426 976,375 319 - 320,494 13,500 36,500 -
Capital grants 57,895 4,034,069 5,675,505 656,355 458,456 197,711 500,605 248,996 155,201 1,122,339
Interest on investments 383,444 231,730 11,988 9,734 22,337 18,400 9,719 7,893 7,198 9,468
Othe 58,182 15,002 14,368 5,814 53,030 77,924 19,165 39,963 38,661 26,974
Total general fund revenu 12,662,255$ 18,725,815$ 16,123,237$ 10,733,887$ 9,030,191$ 8,345,925$ 8,890,830$ 8,387,596$ 7,698,884$ 6,750,752$
* Reclassified from original reports to match correct presentation.
114
CITY OF LAKELAND, TENNESSEE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GENERAL FUND
Last Ten Fiscal Years Ended June 30
(Modified accrual basis of accounting)
Exhibit D-6
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
REVENUES
Property taxes 5,879,855$ 4,953,825$ 4,740,144$ 4,648,727$ 4,418,877$ 4,437,633$ 4,421,833$ 4,609,135$ 4,261,674$ 2,688,232$
Local sales taxes 3,516,029 3,364,638 2,788,507 2,200,349 1,801,637 1,609,593 1,490,556 1,507,055 1,444,540 1,345,912
Intergovernmental 2,052,521 1,974,191 1,860,939 1,679,438 1,558,134 1,576,129 1,545,903 1,498,796 1,526,210 1,406,955
Licenses and permits 197,325 182,990 274,995 353,234 125,308 100,172 63,233 60,823 44,480 61,872
Charges for services 165,354 111,522 165,365 203,861 592,093 328,363 519,322 401,435 184,420 89,000
Federal, state, and local grants 409,545 7,891,917 6,266,931 1,632,730 458,775 197,711 821,099 262,496 191,701 1,122,339
Interest on investments 383,444 231,730 11,988 9,734 22,337 18,400 9,719 7,893 7,198 9,468
Other 58,182 15,002 14,368 5,814 53,030 77,924 19,165 39,963 38,661 26,974
Total revenues 12,662,255 18,725,815 16,123,237 10,733,887 9,030,191 8,345,925 8,890,830 8,387,596 7,698,884 6,750,752
EXPENDITURES
Current Expenditures
General government 4,871,053 2,092,548 2,053,705 1,794,134 1,365,546 2,283,517 3,864,019 2,861,943 1,817,676 1,332,988
Community development 1,128,616 1,000,433 834,821 558,326 981,344 - - - - -
Public safety - - -- - - - - - 2,252
Public works 725,531 602,062 692,393 438,558 465,335 401,566 635,091 896,622 138,676 101,769
Parks and recreation 1,136,620 1,005,529 896,583 436,158 433,545 587,539 423,320 607,642 449,309 1,426,677
Natural resources - - -- - - - - - 59,039
Education - - -- - - - - - 69,574
Debt Service
Principal 111,788 27,500 -- - - - - - -
Interest and fiscal charges 2,356 - -- - - - - 101,684 49,295
Capital outlays 6,306,092 5,571,949 7,827,101 2,069,606 711,936 - - - - 741,324
Total expenditures 14,282,056 10,300,021 12,304,603 5,296,782 3,957,706 3,272,622 4,922,430 4,366,207 2,507,345 3,782,918
Excess (deficiency) of revenues
over (under) expenditures (1,619,801) 8,425,794 3,818,634 5,437,105 5,072,485 5,073,303 3,968,400 4,021,389 5,191,539 2,967,834
OTHER FINANCING SOURCES (USES)
Issuance of debt - 7,015,747 3,155,308 14,794,500 43,500,000 364,001 916,008 94,165 20,000,000 91,643
Issuance of refunding debt - - 43,569,420
Premium on debt issuance - - -- - - - - 2,499,981 -
Issuance of subscription liability 642,127 80,749 -- - - - - - -
Sale of capital assets - - -- 171 - 259,970 - - 496
Transfers in - 700,000 700,000 700,000 730,923 - - - - -
Transfers out (5,427,746) (12,588,979) (52,355,283) (21,543,808) (47,554,069) (3,827,085) (7,181,395) (4,461,554) (24,335,102) (1,974,722)
Total other financing sources (uses)(4,785,619) (4,792,483) (4,930,555) (6,049,308) (3,322,975) (3,463,084) (6,005,417) (4,367,389) (1,835,121) (1,882,583)
Net change in fund balances (6,405,420)$ 3,633,311$ (1,111,921)$ (612,203)$ 1,749,510$ 1,610,219$ (2,037,017)$ (346,000)$ 3,356,418$ 1,085,251$
115
CITY OF LAKELAND, TENNESSEE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Exhibit D-7
Year of
Levy
Residential
Property Farm Property
Commercial
Property
Public Utilities
Property
Commercial
Personal
Property
Total Taxable
Assessed Value
Tax Rate
per $100
Tax Levy Before
Adjustments
Estimated Actual
Taxable Value
Taxable
Assessed Value
as a percentage
of Actual Taxable
Value
Estimated Actual
Taxable Value
per Capita
2024 412,662,675$ 9,739,925$ 71,763,840$ 1,873,145$ 5,072,700$ 501,112,285$ 1.19$ 5,963,236$ 1,860,860,918$ 26.93% 131,065$
2023 406,664,175 9,128,400 69,214,440 2,024,732 4,698,930 491,730,677 1.19 5,851,595 1,857,455,200 26.47% 130,825
2022 392,801,100 9,361,975 66,252,840 2,107,718 5,142,120 475,665,753 1.04 4,946,925 1,795,841,815 26.49% 126,486
2021 384,174,675 9,806,025 54,440,800 1,831,746 4,558,150 454,811,396 1.04 4,730,039 1,731,134,147 26.27% 124,506
2020 309,278,975 7,708,075 46,245,595 1,677,253 4,244,080 369,153,978 1.24 4,577,509 1,401,359,851 26.34% 110,850
2019 301,905,350 7,310,325 46,808,075 1,806,390 4,193,830 362,023,970 1.24 4,489,097 1,380,492,645 26.22% 109,155
2018 296,229,400 7,603,225 45,233,465 1,721,120 4,366,990 355,154,200 1.25 4,439,428 1,346,705,509 26.37%106,481
2017 293,221,300 7,422,225 45,633,520 2,499,805 4,366,440 353,143,290 1.25 4,414,291 1,336,869,300 26.42% 105,589
2016 267,822,525 6,665,875 37,425,900 2,045,929 4,085,420 318,045,649 1.40 4,452,639 1,209,946,971 26.29%95,596
2015 265,348,125 6,871,825 35,791,180 1,905,617 3,531,410 313,448,157 1.40 4,388,274 1,194,704,758 26.24%94,814
Source: Shelby County, Tennessee, Assessor's Office before adjustment from the County Board of Equalization.
Notes: Property in Shelby County, Tennessee, is reassessed every four years.
Residential and farm property is assessed at 25% of appraised/estimated actual taxable value.
Commercial real property is assessed at 40% of appraised/estimated actual taxable value.
Public utilities is assessed at 55% of appraised/estimated actual taxable value.
Population estimated at 14,147 for 2023 per census.gov.
Real Property
116
CITY OF LAKELAND, TENNESSEE
ANALYSIS OF VALUE OF TAXABLE PROPERTY - CURRENT FISCAL YEAR
For the Year Ended June 30, 2024
Exhibit D-8
Year of Levy: 2024
Appraised
Value
Percent
of Total
Assessment
Value
Percent
of Total
Market Real Estate
Farm 21,691,200$ 1.15% 5,422,800$ 1.09%
Residential 1,638,371,900 86.85% 409,592,975 82.04%
Commercial 175,641,300 9.31% 70,256,520 14.07%
Industrial 1,408,700 0.07%563,480 0.11%
Multiple 2,249,000 0.12%688,700 0.14%
Subtotal 1,839,362,100 486,524,475
Greenbelt Real Estate
Farm 17,268,500 0.92%4,317,125 0.86%
Residential 12,278,800 0.65%3,069,700 0.61%
Commercial 23,100 0.00%5,775 0.00%
Industrial - 0.00%- 0.00%
Multiple 674,600 0.04%249,365 0.05%
Subtotal 30,245,000 7,641,965
Personal Property
Tangible 16,906,600 0.90%5,072,700 1.02%
Intangible - 0.00%- 0.00%
Local utility - 0.00% - 0.00%
Subtotal 16,906,600 5,072,700
Total as of April 2024 1,886,513,700$ 499,239,140$
117
CITY OF LAKELAND, TENNESSEE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Exhibit D-9
Levy Year Fiscal Year
City Direct
Rate County Rate
Total Direct &
Overlapping
Rates
2023 2024 1.19$ 3.39$ 4.58$
2022 2023 1.04 3.39 4.43
2021 2022 1.04 3.45 4.49
2020 2021 1.24 4.05 5.29
2019 2020 1.24 4.05 5.29
2018 2019 1.25 4.05 5.30
2017 2018 1.25 4.11 5.36
2016 2017 1.40 4.37 5.77
2015 2016 1.40 4.37 5.77
2014 2015 0.85 4.37 5.22
Notes:
Financial Report and website.
Property Tax Rates per $100 of Assessed Valuation
Shelby County, Tennessee property tax rates obtained from County Annual Comprehensive
Above are the tax rates for both the City of Lakeland and Shelby County.
118
CITY OF LAKELAND, TENNESSEE
PRINCIPAL PROPERTY TAX PAYERS
Current and Nine Years Ago
Exhibit D-10
Name of Taxpa e Nature of Propert Tax Levied
Percentage
of Total ssessment Rank Tax Levied
Percentage
of Total ssessment Rank
Lakeland Apartments TN Assoc LLC partments 161,457$ 2.83% 13,567,800$ 1 122,012$ 2.80% 8,715,120$ 1
Lakeland Commons LP Developin commercial propert 102,807 1.80% 8,639,240 2
Lake District LLC Developin commercial propert 88,149 1.54% 7,407,440 3
CB Associates LLC Strip cente 42,905 0.75% 3,605,440 4 20,440 0.47% 1,460,000 4
Lakeland 64 LLC Fitness center 26,343 0.46% 2,213,720 5 26,400 0.61% 1,885,680 2
Gre or Realt Grou Developin commercial propert 25,556 0.45% 2,147,600 6
Countr brid e Partners LP Strip cente 18,544 0.32% 1,558,360 7 12,320 0.28% 880,000 6
Hi hwa 64 Center LL Strip cente 10,345 0.24% 738,960 9
LDI INC Tennessee Grocer 16,734 0.29% 1,406,200 8
Sainta Rita Real Estate Company Service Station 15,671 0.27% 1,316,880 9
Hi hwa 64 Center LL Developin commercial propert 14,805 0.26% 1,244,080 10
Bankin Consultants of America LCC Strip Cente 25,081 0.58% 1,791,520 3
Oran e Grove Utilities Inc Retail 13,009 0.30% 929,240 5
PPM XIV L Undeveloped Commercial Propert 10,974 0.25% 783,880 7
Lakeland Station Holdin LL Vacant Commercial Propert 10,360 0.24% 740,000 8
Cracker Barrel Old Count r Store In Restaurant 9,009 0.21% 643,520 10
Total for ten lar est taxpa er 512,971 8.99% 43,106,760 259,950 5.96% 18,567,920
Total for all other taxpa er 5,194,323 91.01% 436,497,713 4,100,385 94.04% 292,884,620
Total 5,707,294$ 100% 479,604,473$ 4,360,335$ 100% 311,452,540$
Source: Shelby County Tax Assessor
2024 2015
119
CITY OF LAKELAND, TENNESSEE
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Exhibit D-11
Levy
Year
Fiscal
Year
Original Tax
Levy Adjustments
Adjusted Tax
Levy
Current Tax
Collections
Percent of
Levy Collected
in Funded
Fiscal Year
Collections in
Subsequent
Fiscal Years
Total Tax
Collections
Percent of Tax
Collections to
Tax Levy
Outstanding
Delinquent
Taxes
Percent of
Outstanding
Delinquent
Taxes to Tax
Levy
2023 2024 5,880,668$ 8,333$ 5,889,001$ 5,805,591$ 98.6% -$ 5,805,591$ 98.6% 83,410$ 1.4%
2022 2023 4,946,924 (70,083) 4,876,841 4,830,258 99.0% 24,675 4,854,933 99.6% 21,908 0.4%
2021 2022 4,730,039 8,594 4,738,633 4,692,510 99.0% 38,734 4,731,244 99.8% 7,389 0.2%
2020 2021 4,577,510 22,883 4,600,393 4,577,881 99.5% 20,062 4,597,943 99.9% 2,450 0.1%
2019 2020 4,489,097 (1,833) 4,487,264 4,425,791 98.6% 60,955 4,486,746 100.0% 518 0.0%
2018 2019 4,439,428 42,216 4,481,644 4,460,647 99.5% 20,429 4,481,076 100.0% 568 0.0%
2017 2018 4,414,291 (14,685) 4,399,606 4,382,555 99.6% 16,018 4,398,573 100.0% 1,033 0.0%
2016 2017 4,452,639 3,410 4,456,049 4,417,221 99.1% 38,324 4,455,545 100.0% 504 0.0%
2015 2016 4,388,274 82 4,388,356 4,330,322 98.7% 57,571 4,387,893 100.0% 463 0.0%
2014 2015 2,620,545 (579) 2,619,966 2,559,795 97.7% 60,171 2,619,966 100.0% - 0.0%
Notes: The Shelby County Assessor's office assesses the value of property within the City of Lakeland; the City of Lakeland levies the tax and is ultimately responsible for
collection.
120
CITY OF LAKELAND, TENNESSEE
SALES TAX BY FISCAL YEAR
Last Ten Fiscal Years Ended June 30
(Modified accrual basis of accounting)
Exhibit D-12
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
SALES TAX REVENUE
Local sales tax 2,011,068$ 1,974,463$ 1,582,729$ 1,173,137$ 981,036$ 835,377$ 772,360$ 784,428$ 773,378$ 655,993$
Local option sales tax 861,505 779,050 689,570 567,715 431,188 367,118 339,323 345,286 339,857 288,272
State-shared sales tax 1,707,602 1,654,194 1,572,882 1,318,779 1,132,436 1,102,437 1,059,342 1,030,176 1,005,384 941,407
Total sales tax revenue 4,580,175$ 4,407,707$ 3,845,181$ 3,059,631$ 2,544,660$ 2,304,932$ 2,171,025$ 2,159,890$ 2,118,619$ 1,885,672$
121
CITY OF LAKELAND, TENNESSEE
DIRECT AND OVERLAPPING SALES TAX RATES
Last Ten Fiscal Years
Exhibit D-13
Fiscal Year City Direct Rate Shelby County
State of
Tennessee
Total Direct &
Overlapping
Rates
2024 0.500% 2.250% 7.000% 9.750%
2023 0.500% 2.250% 7.000% 9.750%
2022 0.500% 2.250% 7.000% 9.750%
2021 0.500% 2.250% 7.000% 9.750%
2020 0.500% 2.250% 7.000% 9.750%
2019 0.500% 2.250% 7.000% 9.750%
2018 0.500% 2.250% 7.000% 9.750%
2017 0.500% 2.250% 7.000% 9.750%
2016 0.500% 2.250% 7.000% 9.750%
2015 0.500% 2.250% 7.000% 9.750%
Notes:
Sales Tax Rates
Local option sales tax can be changed by a vote of the citizens.
122
CITY OF LAKELAND, TENNESSEE
TAXABLE SALES BY CATEGORY
Last Six Calendar Years
Exhibit D-14
2023 2022 2021 2020 2019 2018
Sector
Retail trade 136,234,873$ 69,992,545$ 43,878,929$ 41,207,557$ 44,147,662$ 43,369,724$
Services 15,922,400 8,498,364 6,384,086 5,167,586 6,713,857 7,452,086
Wholesale trade 392,218 209,309 166,300 522,586 450,500 357,743
Other and/or unclassified* 13,784,800 8,232,837 8,049,929 5,841,857 4,217,441 4,970,228
Total 166,334,291$ 86,933,055$ 58,479,244$ 52,739,586$ 55,529,460$ 56,149,781$
Source:
Notes: Figures subject to revision due to amended taxpayer returns.
*
Tennessee Department of Revenue, Research Division.
This category includes agriculture, construction, finance, manufacturing, and transportation; however, as the number of filers in each category is
small the information has been aggregated to prevent identification of individual filers.
The schedule above is intended to be a ten-year schedule; years will be added to this schedule until ten years of data are
presented, as available.
123
CITY OF LAKELAND, TENNESSEE
LOCAL SALES TAX REVENUE BY INDUSTRY
Current and Five Years Ago
Exhibit D-15
Number of
Filers
Percentage
of Total Tax Liability
Percentage
of Total
Number of
Filers
Percentage
of Total Tax Liability
Percentage of
Total
Secto
Retail trade 81 47.09% 3,746,459$ 81.90% 63 40.91% 1,262,632$ 80.09%
Services 47 27.33% 437,866 9.57% 49 31.82% 204,937 13.00%
Wholesale trade 5 2.91% 10,786 0.24% 13 8.44% 9,833 0.62%
Other and/or unclassified*39 22.67% 379,082 8.29% 29 18.83% 99,122 6.29%
Total 172 100.00% 4,574,193$ 100.00% 154 100.00% 1,576,524$ 100.00%
Source: Tennessee Department of Revenue, Research Division.
Notes: Figures subject to revision due to amended taxpayer returns.
Does not include Lakeland's share of county clerk or out-of-state taxpayer amounts.
Number of filers presents the number of returns filed for December of the reported calendar year.
*
Calendar Year 2023 Calendar Year 2018
Figures represent local sales tax collected by taxpayers during the calendar year, not disbursements from the Department of Revenue. Thus, amounts
presented above do not match to amounts reflected within the financial report.
The schedule above is intended to present the most recent year, and nine years prior; as information becomes available this will be presented in subsequent
reporting years.
This category includes agriculture, construction, finance, manufacturing, and transportation; however, as the number of filers in each category is small the
information has been aggregated to prevent identification of individual filers.
124
CITY OF LAKELAND, TENNESSEE
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Exhibit D-16
Fiscal Year
General
Obligation Notes
Payable
Other Loans
Payable
Leases
Payable
Subscription
Liability
Business-Type
Activities
Notes Payable
Total
Outstanding Debt
Total Personal
Income
Ratio of
Outstanding
Debt to Personal
Income Population
Outstanding
Debt per
Capita
2024 57,910,754$ 1,342,040$ -$ 638,346$ 6,446,702$ 66,337,842$ 957,081,411$ 6.93% 14,186 4,676$
2023 58,847,529 1,408,707 - 53,249 2,065,000 62,374,485 871,978,984 7.15% 13,713 4,549
2022 59,967,608 1,529,341 - - 2,701,000 64,197,949 858,193,012 7.48% 14,198 4,522
2021 58,723,595 1,648,475 - - 3,313,000 63,685,070 803,763,546 7.92% 13,904 4,580
2020 62,742,499 1,766,135 105,163 - 3,901,000 68,514,797 698,003,580 9.82% 12,642 5,420
2019 21,326,831 1,876,968 204,940 - 4,466,000 27,874,739 665,662,198 4.19% 12,647 2,204
2018 23,355,164 1,578,328 228,401 - 5,010,000 30,171,893 657,774,678 4.59% 12,617 2,391
2017 25,350,018 718,657 88,461 - 5,533,000 31,690,136 653,848,008 4.85% 12,606 2,514
2016 27,314,827 665,605 53,833 - 6,036,000 34,070,265 682,006,512 5.00% 12,612 2,701
2015 5,331,097 737,164 81,900 - 6,519,000 12,669,161 677,397,330 1.87% 12,618 1,004
Notes:Details regarding the City's outstanding debt are found in the notes to the financial statements for each respective audited fiscal year.
Amounts are presented net of related premiums, discounts, and adjustments.
Personal income and population data are found in the "Demographics and Economic Indicators" schedule.
Governmental Activities
125
CITY OF LAKELAND, TENNESSEE
RATIOS OF GENERAL BONDED DEBT
Last Ten Fiscal Years
Exhibit D-17
Fiscal Year
General
Obligation
Notes Pa able
Other Loans
Pa able
Leases
Pa able
Subscription
Liabilit
Business-Type
Activities
Notes Pa able
Total General
Bonded Debt
Estimated Actual
Value of Taxable
Propert
Ratio of
General
Bonded Debt to
Est Actual
Value of
Taxable
Propert
Populatio
n
General
Bonded Debt
per Capita
2024 57,910,754$ 1,342,040$ -$ 638,346$ 6,446,702$ 66,337,842$ 1,861,136,531 3.56% 14,186 4,676$
2023 58,847,529 1,408,707 - 53,249 2,065,000 62,374,485 1,795,841,815 3.47% 13,713 4,549
2022 59,967,608 1,529,341 - - 2,701,000 64,197,949 1,731,134,147 3.71% 14,198 4,522
2021 58,723,595 1,648,475 - - 3,313,000 63,685,070 1,401,359,851 4.54% 13,904 4,580
2020 62,742,499 1,766,135 105,163 - 3,901,000 68,514,797 1,380,492,645 4.96% 12,642 5,420
2019 21,326,831 1,876,968 204,940 - 4,466,000 27,874,739 1,346,705,509 2.07% 12,647 2,204
2018 23,355,164 1,578,328 228,401 - 5,010,000 30,171,893 1,336,869,300 2.26% 12,617 2,391
2017 25,350,018 718,657 88,461 - 5,533,000 31,690,136 1,209,946,971 2.62% 12,606 2,514
2016 27,314,827 665,605 53,833 - 6,036,000 34,070,265 1,194,704,758 2.85% 12,612 2,701
2015 5,331,097 737,164 81,900 - 6,519,000 12,669,161 1,176,577,136 1.08%12,618 1,004
Notes: Details regarding the City's outstanding debt are found in the notes to the financial statements for each respective audited fiscal year.
Estimated Actual Value of Taxable Property is found on the related statistical table, "Assessed Value and Estimated Actual Value of Taxable Property."
Personal income and population data are found in the "Demographics and Economic Indicators" schedule.
Governmental Activities
126
CITY OF LAKELAND, TENNESSEE
DIRECT AND OVERLAPPING DEBT - GOVERNMENTAL ACTIVITIES
As of June 30, 2024
Exhibit D-18
Name of Government Unit Debt Outstanding
Percentage
Applicable to
Lakeland (1)
Overlapping Debt
(2)
City of Lakeland 59,891,140$ 100.00% 59,891,140$
Shelby County 825,622,285 1.19% 9,836,823
Totals - direct and overlapping
debt 885,513,425$ 69,727,963$
Notes: The Shelby County general obligation debt is obtained on an unaudited basis from the Shelby
County Finance department.
The amount for the City of Lakeland above does not include business-type activities debt recorded
in the Sewer Fund.
The City of Lakeland has no legal debt limit.
(1) Determined by the ratio of assessed valuation of property subject to taxation in the City of
Lakeland to the value of property subject to taxation in Shelby County.
(2) Amount of debt outstanding multiplied by percentage applicable to Lakeland.
127
CITY OF LAKELAND, TENNESSEE
DEMOGRAPHIC AND ECONOMIC INDICATORS
Last Ten Fiscal Years
Exhibit D-19
Year Population (a)
Total Personal
Income (b)
Per Capita Personal
Income (c)
Unemployment
Rate (d)
2024 14,186 957,081,411$ 67,467$ 4.6%
2023 13,713 871,978,984 63,588 (e)6.8%
2022 14,198 858,193,012 60,445 (e)5.5%
2021 13,904 803,763,546 57,808 7.6%
2020 12,642 698,003,580 55,213 11.6%
2019 12,647 665,662,198 52,634 4.6%
2018 12,617 657,774,678 52,134 4.9%
2017 12,606 653,848,008 51,868 4.7%
2016 12,612 682,006,512 54,076 5.9%
2015 12,618 677,397,330 53,685 7.0%
Sources:
(a)
(b)
(c)
(d)
(e)
Estimates of population obtained from census.gov for the calendar year falling within the fiscal
year. Data for fiscal year 2024 is based on the 2023 Census results. 2023 est -
worldpopulationreview.com
Calculated estimate of total personal income as population times per capita personal income.
Data obtained from data.census.gov (unless otherwise indicated) for the calendar year falling
within the fiscal year and for the census tracts related to the City of Lakeland.
Data obtained from U.S. Bureau of Labor Statistics for Shelby County, as the most relevant
measure to present given that the majority of Lakeland residents are employed not within the
City of Lakeland, but in the greater Shelby County. Data is presented as of June of each fiscal
year end.
Estimated based on State of Tennessee personal income growth of 6.1 percent and 4.3 percent
for 2024 and 2023, respectively, as reported on bea.gov.
128
CITY OF LAKELAND, TENNESSEE
PRINCIPAL EMPLOYERS
Current and Nine Years Ago
Exhibit D-20
Taxpayer
No. of
Employees Rank
No. of
Employees Rank
Lakeland School System 331 1 312 1
Chick-Fil-A 125 2
A2H 100 3 92 2
Cracker Barrel 93 4 86 3
Owner's Box 90 5
Waffle House (2 stores total) 69 6 69 4
Sprouts 60 7 53 6
The Pet Hospital 59 8 62 5
City of Lakeland 53 9 45 8
Smiths Plumbing 47 10 51 7
Renaissance Group 34 9
Zaxby's 32 10
Total for ten largest employers 1,027 836
Source: City of Lakeland Business License Data and Chamber of Commerce Member List.
2024 2015
129
CITY OF LAKELAND, TENNESSEE
FULL-TIME EQUIVALENT EMPLOYEES BY FUND AND FUNCTION
Last Ten Fiscal Years
Exhibit D-21
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
CITY FUNDS
General Fund
General government 16.4 8.6 8.4 7.9 7.2 6.7 14.7 14.0 15.2 14.2
Community development 7.9 7.6 7.4 6.1 5.5 5.6 - - - -
Natural resources - - - - - - - - - -
Public works 7.0 7.3 8.5 7.3 7.2 6.8 6.0 4.1 1.4 0.9
Public safety - - - - - - - - - -
Parks and recreation 5.8 7.0 6.2 3.1 2.8 3.2 2.8 4.4 3.3 2.9
Total General Fund 37.1 30.5 30.5 24.4 22.7 22.3 23.5 22.5 19.9 18.0
State Street Aid Fund
Public works 2.5 3.7 4.0 3.6 4.0 4.7 4.0 4.0 3.0 3.5
Stormwater Fund
Public works 0.8 0.8 0.8 0.7 0.5 0.5 0.5 0.5 1.8 1.8
Solid Waste Fund
Public works 2.2 1.5 2.2 2.2 2.2 1.0 1.5 0.5 1.8 0.8
Sewer Fund
Public works 7.5 8.5 7.0 5.0 4.6 3.3 4.0 4.0 4.0 4.0
TOTAL CITY FUNDS 50.0 45.0 44.5 35.9 34.0 31.8 33.5 31.5 30.5 28.1
LSS FUNDS
General Purpose School Fund
Education 295.0 234.0 208.0 197.0 190.0 178.0 162.0 124.0 104.5 95.5
School Federal Projects Fund
Education 8.0 9.0 14.0 6.0 5.0 4.0 3.0 2.0 2.0 1.5
School Nutrition Fund
Education 16.0 10.0 8.0 9.0 7.0 7.0 7.0 3.5 3.5 3.5
School Discretionary Grants Fund
Education - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
LEAP Fund
Education 6.0 6.0 6.0 6.0 4.0 4.0 5.0 3.5 3.5 -
TOTAL LSS FUNDS 325.0 260.0 237.0 219.0 207.0 194.0 178.0 134.0 114.5 101.5
TOTAL FTE'375.0 305.0 281.5 254.9 241.0 225.8 211.5 165.5 145.0 129.6
SUMMARY BY FUNCTION, CITY-WIDE:
General government 16.4 8.6 8.4 7.9 7.2 6.7 14.7 14.0 15.2 14.2
Community development 7.9 7.6 7.4 6.1 5.5 5.6 - - - -
Natural resources - - - - - - - - - -
Public works 19.9 21.8 22.5 18.8 18.5 16.3 16.0 13.1 12.0 11.0
Public safety - - - - - - - - - -
Parks and recreation 5.8 7.0 6.2 3.1 2.8 3.2 2.8 4.4 3.3 2.9
Education 325.0 260.0 237.0 219.0 207.0 194.0 178.0 134.0 114.5 101.5
TOTAL FTE'375.0 305.0 281.5 254.9 241.0 225.8 211.5 165.5 145.0 129.6
Source: City of Lakeland and Lakeland School System personnel records.
Notes:
"LSS" is Lakeland School System.
Numbers presented above are full-time equivalent average number of employees for each fiscal year. A full-time equivalent ("FTE") is
calculated based on 2,080 hours per year, including time off.
For years in which FTE's were not tracked by function, the FTE's on the schedule above are allocated based upon the allocation of personnel
costs.
130
CITY OF LAKELAND, TENNESSEE
OPERATING INDICATORS BY FUNCTION
Last Ten Fiscal Years
Exhibit D-22
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
FUNCTION
Community Development
Residential building permits issued 41 92 89 153 87 86 23 27 38 45
Commercial building permits issued 1 8 2 7 2 1 1 4 2 1
Public Works
Bulk waste collections 3,889 2,636 2,525 2,806 2,848 1,433 822 *
Parks and Recreation
Youth recreation participants 1,372 902 814 556 350 986 867 645 538 447
Senior Center participants**5,299 5,687 5,822
Special Events participants**2,539 2,578 1,703
Wastewater
Sewer connections***4,512 5,287 3,148 2,939 2,920 2,847 2,900 2,900 2,991 2,855
Education
Student enrollment 2,274 2,290 2,041 1,884 1,841 1,735 1,602 955 920 850
Source: City of Lakeland Functional Departments.
* Bulk waste collections program began in September 2017.
** New tracking 2022
*** Sewer connection increase due to Stonebridge acquisition from City of Memphis.
131
CITY OF LAKELAND, TENNESSEE
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Fiscal Years
Exhibit D-23
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
FUNCTION
General Government
City-owned buildings 5 5 5 5 5 5 5 5 5 5
Public Works
Streets (miles)83 83 81 81 81 81 79 79 79 78
Parks and Recreation
Acreage 238 238 238 238 238 238 238 238 235 235
Number of parks 8 8 8 8 8 8 8 8 8 8
Tennis courts 2 2 2 2 2 2 2 2 2 2
Multi use practice fields 4 4 4 2 2 2 2 2 2 2
Athletic fields 2 2 2 - - - - - - -
Playgrounds 4 4 4 4 3 3 3 3 3 3
Picnic Pavilion 4 4 4 4 5 5 5 5 5 5
Amphitheater 1 1 1 1 1 1 1 1 1 1
Walking trails (miles)4 4 4 4 4 4 4 4 4 4
Wastewater
Sanitary sewer (miles)70 68 65 65 65 65 64 63 63 62
Sewer connections 5,287 5,287 3,148 2,939 2,920 2,847 2,900 2,900 2,991 2,855
Education
School buildings 2 2 2 2 2 2 2 1 1 1
Source: City of Lakeland Functional Departments.
132
133
GOVERNMENT AUDITING STANDARDS SECTION
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
For the Year Ended June 30, 2024
134
Assistance Contract
Federal Grantor/Pass-Through Grantor/Program Listing Number Expenditures
U.S. Department of Agriculture
Passed through TN Department of Education
Child Nutrition Cluster
School Breakfast Program 10.553 N/A 39,847$
National School Lunch Program- Non-Cash Assistance 10.555 N/A 30,415
National School Lunch Program- Cash Assistance 10.555 N/A 264,987
USDA Rebate 10.555 N/A 122,042
Subtotal - AL 10.555 417,444
Subtotal - Child Nutrition Cluster 457,291
COVID-19 Pandemic EBT Administrative Costs 10.649 N/A 653
Direct Award
Community Facilities Loans and Grants 10.766 R-1 5,025,250
Community Facilities Loans and Grants 10.766 R-2 9,287,208
Community Facilities Loans and Grants 10.766 R-1 9,753,117
Community Facilities Loans and Grants 10.766 R-2 9,654,601
Community Facilities Loans and Grants 10.766 R-3 9,556,084
Community Facilities Loans and Grants 10.766 R-4 7,785,746
Community Facilities Loans and Grants 10.766 R-5 7,785,253
Subtotal - AL 10.766 58,847,259
Total U.S. Department of Agriculture 59,305,203
U.S. Department of Housing and Urban Development
Passed through Shelby County
CDBG - Entitlement Grants Cluster
Community Development Block Grant (CDBG) 14.218 CA 2300023 234,119
U.S. Department of Transportation
Passed through TN Department of Transportation
Highway Planning and Construction 20.205 STP-M-9409(107)58,357
Highway Planning and Construction 20.205 TAP-M-7900(64) 154,528
Highway Planning and Construction 20.205 TAP-M-7900(59)29,249
Highway Planning and Construction 20.205 STP-M-811(136)3,330
Total U.S. Department of Transportation 245,464
U.S. Department of Treasury
Direct Award
COVID-19 - Coronavirus State & Local Fiscal Recovery Funds 21.027 N/A 25,000
U.S. Environmental Protection Agency
Passed through TN Department of Environment and Conservation
Clean Water State Revolving Fund 66.458 SRF 2022-476 5,042,702
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
(CONTINUED)
For the Year Ended June 30, 2024
135
Assistance Contract
Federal Grantor/Pass-Through Grantor/Program Listing Number Expenditures
U.S. Department of Education
Passed through TN Department of Education
Title I Grants to Local Education Agencies (Title I, Part A of the ESEA)84.010A S010A200042 252,195
Special Education Cluster (IDEA)
Special Education Grants to States (IDEA, Part B)84.027A H027A200052 384,663
COVID-19 Special Education - ARP (IDEA, Part B)84.027X H027X210052 1,742
Special Education Preschool Grants (IDEA Preschool)84.173A H173A200095 11,926
Subtotal - Special Education Cluster (IDEA)398,331
English Language Acquisition State Grants 84.365 S365A200042 13,519
Supporting Effective Instruction State Grants 84.367 S367A200040 38,055
Student Support and Academic Enrichment Program 84.424A S424A200044 24,106
Impact Aid 84.041 S041B-2019-7197 42,171
Total U.S. Department of Education 768,377
U.S. Department of Health and Human Services
Passed through TN Department of Education
COVID-19 Public Health Emergency Response: Cooperative Agreement
for Emergency Response: Public Health Crisis Response 93.354 N/A 6,507$
COVID-19 Temporary Assistance for Needy Families (TANF) 93.558 N/A 7,372
U.S. Department of Homeland Security
Passed through FEMA
Disaster Grants - Public Assistance (Presidentially Declared Disasters)97.036 N/A 455,349
Total Federal Awards 66,090,093$
Assistance Contract
State Financial Assistance Listing Number Expenditures
TN Department of Education
Innovative School Models N/A 130,592$
Child Nutrition State Funding N/A 5,863
COVID-19 Summer Learning Camps N/A 255,908
State Education Preschool Grant N/A 77,773
Public School Security Grant N/A 86,088
Disaster Grants - Public Assistance (Presidentially Declared Disasters)N/A 75,281
Total State Financial Assistance 631,505$
66,721,598$ Total Federal Awards and State Financial Assistance
CITY OF LAKELAND TENNESSEE
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL
ASSISTANCE
For the Year Ended June 30, 2024
136
NOTE 1 – BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal
and state grant activity of the City of Lakeland, Tennessee (the “City”) under programs of the federal government for
the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may
differ from amounts presented in or used in the presentation of the financial statements. Because the Schedule
presents only a selected portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net assets, or cash flows of the City.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1) Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures
are not allowable or are limited as to reimbursement.
2) Pass-through entity identifying numbers are presented where available.
3) There were no federal awards passed through to subrecipients.
4) The City has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
5) Non-monetary assistance is reported in the schedule at the fair market value of the commodities received and
disbursed. For the year ended June 30, 2024, the City received food commodities totaling $30,415.
6) The loan balance for the Community Facilities Loans and Grants totaled $57,910,754.
7) The grant revenue amounts received and expensed (eligible for reimbursement) are subject to audit adjustment.
If any expenses are disallowed by the grantor as a result of such audit and claim for reimbursement to the grantor
would become a liability of the City. In the opinion of management, all grant expenses (eligible for reimbursement)
are in compliance with the terms of the grant agreement and applicable federal and state laws and regulations.
NOTE 3 – RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE
FINANCIAL ASSISTANCE TO THE FINANCIAL STATEMENTS
The following is a reconciliation of expenditures per the schedule of expenditures of federal awards and state financial
assistance to the revenue balances in the City’s financial statements.
Total grant revenue per governmental funds financial statements 2,072,800$
Add: grant revenue recognized in proprietary funds 61,372
Add: Increase in unavailable revenue at the fund level 696,986
Add: Loan program expenditures 58,847,259
Add: Proprietary fund loan 5,042,702
Add: Other grants 479
Total federal awards and state financial assistance 66,721,598$
137
INDEPENDENT AUDITOR’S REPORT
ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Board of Commissioners of the
City of Lakeland, Tennessee:
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business-type activity, each
major fund, the fiduciary fund, and the aggregate remaining fund information of the City of Lakeland, Tennessee (the
“City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements, and have issued our report thereon dated July 22, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion
on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We
identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned
costs as item 2024-001 that we consider to be a material weakness.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do
not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
138
City of Lakeland, Tennessee’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of Lakeland,
Tennessee’s response to the findings identified in our audit and described in the accompanying schedule of findings
and questioned costs. City of Lakeland, Tennessee’s response was not subjected to the other auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Other Reporting Required by Government Auditing Standards
This report has been reissued to reflect the revision of the Schedule of Expenditures of Federal Awards and State
Financial Assistance (SEFA) and the completion of additional audit procedures related to federal program activity
under ALN 66.458. Our report is not modified with respect to this matter.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Memphis, Tennessee
July 22, 2025
139
INDEPENDENT AUDITOR’S REPORT
ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Commissioners of the
City of Lakeland, Tennessee:
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Lakeland, Tennessee (the “City”)’s compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each
of the City’s major federal programs for the year ended June 30, 2024. The City’s major federal programs are
identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above
that could have a direct and material effect on each of its major federal program for the year ended June 30, 2024.
Emphasis of Matter – Reissuance of Report
As discussed in Note 15 to the financial statements, this report has been reissued to reflect the revision of the
Schedule of Expenditures of Federal Awards and State Financial Assistance (SEFA) to include previously omitted
federal expenditures under the Clean Water State Revolving Fund (ALN 66.458). We have audited the program and
updated our major program determination and related compliance audit procedures accordingly. Our opinion on
compliance is not modified with respect to this matter.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City of Lakeland, Tennessee and to meet our other ethical responsibilities,
in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.
Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred
to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes,
regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
140
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s
compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists.
The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a substantial
likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards,
and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the City’s compliance with the compliance requirements referred to above and performing
such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design
audit procedures that are appropriate in the circumstances and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on
the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over
compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified.
However, as discussed below, we did identify a certain deficiency in internal control over compliance that we consider
to be a material weakness.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged with
governance. We consider the deficiency in internal control over compliance described in the accompanying schedule
of findings and questioned costs as item 2024-001 to be a material weakness.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
141
Government Auditing Standards requires the auditor to perform limited procedures on the City of Lakeland,
Tennessee’s response to the internal control over compliance findings identified in our compliance audit described in
the accompanying schedule of findings and questioned costs. The City of Lakeland, Tennessee’s response was not
subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion
on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Memphis, Tennessee
July 22, 2025
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2024
142
SECTION I – SUMMARY OF INDEPENDENT AUDITIOR’S RESULTS
Financial Statements
Type of auditor’s report issued on whether financial statements audited
were prepared in accordance with accounting principles generally
accepted in the United State of America Unmodified
Internal control over financial reporting:
Material weakness(es) identified? X Yes No
Significant deficiency(ies) identified not considered
to be material weakness(es)? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Type of auditor’s report issued on compliance for major programs: Unmodified
Internal control over major programs:
Material weakness(es) identified? X Yes No
Significant deficiency(ies) identified not considered
to be material weakness(es)? Yes X None Reported
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200.516(a) Yes X No
Identification of major programs:
Assistance Listing Number: 10.766 – Community Facilities Loans and Grants
Assistance Listing Number: 66.458 – Clean Water State Revolving Fund
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Did auditee qualify as a low-risk auditee? X Yes No
SECTION II – FINANCIAL STATEMENTS FINDINGS
2024-001 – Exclusion of Federal Expenditures from SEFA
(Material Weakness in Internal Control over Financial Reporting)
(Material Weakness in Internal Control over Compliance)
Criteria: In accordance with 2 CFR §200.510(b), the auditee is required to prepare a complete and accurate
Schedule of Expenditures of Federal Awards and State Financial Assistance (SEFA) that includes the total federal
awards expended for each federal program and the associated Assistance Listing Number (ALN). This schedule
forms the basis for the auditor’s risk-based determination of major programs under 2 CFR §200.518. The SEFA
is also subject to the auditor’s in-relation-to opinion in accordance with AU-C §725 and Government Auditing
Standards. Deficiencies in the preparation of the SEFA may affect both financial reporting and compliance
responsibilities under the Uniform Guidance.
CITY OF LAKELAND, TENNESSEE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2024
143
Condition: The original SEFA submitted by the auditee for the fiscal year ended June 30, 2024, omitted a
significant federal loan program under ALN 66.458 – Clean Water State Revolving Fund. The omitted program
exceeded the threshold for a Type A major program and should have been included in the auditor’s major
program determination and subject to audit under the Uniform Guidance. The omission was not identified or
corrected by the auditee’s internal controls prior to the issuance of the financial statements and initial Single Audit
report.
Cause: The auditee did not have adequate internal controls in place to identify all federal awards for inclusion in
the SEFA. Specifically, there was a lack of coordination between finance staff and grant administrators to ensure
that long-term loan proceeds from state pass-through entities were evaluated for federal reporting purposes.
Effect: The SEFA was materially misstated. As a result:
A federal major program was omitted from the auditor’s risk-based program selection;
The auditor’s original Single Audit report was incomplete and had to be reissued after additional
procedures were performed;
The financial statements were reissued due to the in-relation-to opinion on the materially misstated
SEFA.
This control deficiency represents a material weakness in internal control over financial reporting, because it
resulted in a material misstatement not prevented or detected in a timely manner. It also constitutes a material
weakness in internal control over compliance, as it impaired the auditee’s ability to accurately present federal
award activity and comply with Subpart F of the Uniform Guidance.
Recommendation: We recommend that management implement enhanced controls over the identification and
reporting of federal awards, including:
Developing procedures to reconcile general ledger accounts with federal grant agreements and state
confirmations;
Training personnel on Uniform Guidance SEFA requirements;
Reviewing loan documents and coordinating with granting agencies to verify all federal sources and
assistance types, including loans and non-cash awards.
Views of Responsible Officials and Planned Corrective Action: See Corrective Action Form
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
CITY OF LAKELAND, TENNESSEE
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
For the Year Ended June 30, 2024
144
A. FINANCIAL STATEMENT FINDINGS
None reported.
B. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
10001 US Highway 70 Lakeland, TN 38002
Phone: (901) 867-2717 | Fax: (901) 867-2063
145
MANAGEMENT’S CORRECTIVE ACTION PLAN
City of Lakeland, Tennessee respectfully submits the following corrective action plan for the year ended June 30,
2024. The finding from the June 30, 2024, schedule of findings and questioned costs are discussed below. The
finding is numbered consistently with the number assigned in the schedule.
2024-001: Exclusion of Federal Expenditures from SEFA
Corrective Action:
We acknowledge the finding related to the omission of a federal loan program under ALN 66.458 from the
Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024.
This loan was unusual in nature and not part of the City’s typical federal funding activity. While management
was aware of the federal funding sources related to the State of Tennessee’s loan program, the loan
documentation did not present the information in a manner that was easily recognized. While the Assistance
Listing Number (ALN) was included, no split between federal and state funding (as would typically be the
case) was demarcated in the agreement.
Now that this loan has been properly identified and understood, it has been included in the revised SEFA,
and we do not anticipate similar issues in the future. Going forward, we will ensure that any new federal loan
agreements are reviewed for ALN references and evaluated for SEFA inclusion.
No further corrective action is deemed necessary at this time.
Responsible for Corrective Action: Sue Matthews, Finance Director
Anticipated Completion Date for Corrective Action: Corrective action taken.
Signature: ________________________
Sue Matthews, Finance Director