NEW ISSUE-Book-Entry Only Ratings: Standard & Poor’s: “AA+” Moody’s: “Aa1” (See “RATINGS” herein) In the opinion of Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, except that interest on the Bonds must be included in the “adjusted current earnings” of certain corporations for purposes of calculating alternative minimum taxable income. Bond Counsel also is of the opinion that, under existing laws of the State of Nebraska, interest on the Bonds is exempt from Nebraska state income taxation as long as it is exempt for purposes of the federal income tax. See “TAX EXEMPTION” herein. $24,970,000 CITY OF OMAHA, NEBRASKA Various Purpose and Refunding Bonds Series 2013A Dated: Date of Delivery Due: November 15, as shown on inside cover page The above captioned bonds (the “Bonds”) are issuable in fully registered form in the denominations of $5,000 and integral multiples thereof. Interest on the Bonds is payable semiannually on May 15 and November 15 of each year, commencing May 15, 2014, by check or draft mailed to the registered owner as of the applicable record date at the address shown on the books of registry maintained by First National Bank of Omaha, as Registrar. Principal of the Bonds is payable upon presentation and surrender of the Bonds at the principal corporate office of First National Bank of Omaha, as Paying Agent, in Omaha, Nebraska. The Bonds are subject to optional redemption prior to maturity at the principal amount thereof plus interest to the redemption date all as described in this Official Statement. The Bonds initially will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Purchases of the Bonds may be made only in book-entry form in authorized denominations by credit to participating broker-dealers and other institutions on the books of DTC as described herein. Purchasers will not receive certificates evidencing the Bonds. Principal of and interest on the Bonds will be payable by the paying agent directly to DTC as the registered owner thereof. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and disbursement of such payments to the beneficial owners is the responsibility of the DTC Participants and the Indirect Participants, as more fully described herein. Any purchaser of a beneficial interest in the Bonds must maintain an account with a broker or dealer who is, or acts through, a DTC Participant to receive payment of the principal of and interest on such Bonds. See “THE BONDS—Book-Entry Only System” herein. The proceeds of the Bonds will be used to pay the costs of acquiring equipment and constructing improvements relating to the streets and highways, sewers, public safety and other public facilities and parks and recreation facilities of the City of Omaha (the “City”) and to currently refund certain outstanding indebtedness assumed by the City as a result of its annexations of one Douglas County, Nebraska sanitary and improvement district and certain outstanding general obligation debt previously issued by the City. THE BONDS ARE PAYABLE FROM AD VALOREM TAXES, UNLIMITED AS TO RATE AND AMOUNT, LEVIED BY THE CITY AGAINST ALL TAXABLE PROPERTY IN THE CITY. THE FULL FAITH AND CREDIT OF THE CITY ARE PLEDGED TO THE PROMPT PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS. MATURITY SCHEDULE (on inside cover page) This cover page contains information for convenient reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential and material to the making of an informed investment decision. The Bonds are being offered when, as and if issued by the City and accepted by the Underwriter, subject to the approval of legality of the Bonds by Kutak Rock LLP, Bond Counsel, and to certain other conditions. It is expected that delivery of the Bonds will be made on or about September 26, 2013, at DTC in New York, New York against payment therefor. Dated: September 17, 2013
302
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NEW ISSUE-Book-Entry Only Ratings: Standard & Poor’s: “AA+”
Moody’s: “Aa1”
(See “RATINGS” herein)
In the opinion of Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds is excluded
from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative
minimum tax imposed on individuals and corporations, except that interest on the Bonds must be included in the “adjusted current
earnings” of certain corporations for purposes of calculating alternative minimum taxable income. Bond Counsel also is of the
opinion that, under existing laws of the State of Nebraska, interest on the Bonds is exempt from Nebraska state income taxation as
long as it is exempt for purposes of the federal income tax. See “TAX EXEMPTION” herein.
$24,970,000
CITY OF OMAHA, NEBRASKA
Various Purpose and Refunding Bonds
Series 2013A
Dated: Date of Delivery Due: November 15, as shown on inside cover page
The above captioned bonds (the “Bonds”) are issuable in fully registered form in the denominations of $5,000 and integral multiples thereof. Interest on the Bonds is payable semiannually on May 15 and November 15 of each year, commencing May 15, 2014, by check or draft mailed to the registered owner as of the applicable record date at the address shown on the books of registry maintained by First National Bank of Omaha, as Registrar. Principal of the Bonds is payable upon presentation and surrender of the Bonds at the principal corporate office of First National Bank of Omaha, as Paying Agent, in Omaha, Nebraska. The Bonds are subject to optional redemption prior to maturity at the principal amount thereof plus interest to the redemption date all as described in this Official Statement.
The Bonds initially will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Purchases of the Bonds may be made only in book-entry form in authorized denominations by credit to participating broker-dealers and other institutions on the books of DTC as described herein. Purchasers will not receive certificates evidencing the Bonds. Principal of and interest on the Bonds will be payable by the paying agent directly to DTC as the registered owner thereof. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and disbursement of such payments to the beneficial owners is the responsibility of the DTC Participants and the Indirect Participants, as more fully described herein. Any purchaser of a beneficial interest in the Bonds must maintain an account with a broker or dealer who is, or acts through, a DTC Participant to receive payment of the principal of and interest on such Bonds. See “THE BONDS—Book-Entry Only System” herein.
The proceeds of the Bonds will be used to pay the costs of acquiring equipment and constructing improvements relating to the streets and highways, sewers, public safety and other public facilities and parks and recreation facilities of the City of Omaha (the “City”) and to currently refund certain outstanding indebtedness assumed by the City as a result of its annexations of one Douglas County, Nebraska sanitary and improvement district and certain outstanding general obligation debt previously issued by the City.
THE BONDS ARE PAYABLE FROM AD VALOREM TAXES, UNLIMITED AS TO RATE AND AMOUNT, LEVIED BY THE CITY AGAINST ALL TAXABLE PROPERTY IN THE CITY. THE FULL FAITH AND CREDIT OF THE CITY ARE PLEDGED TO THE PROMPT PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS.
MATURITY SCHEDULE
(on inside cover page)
This cover page contains information for convenient reference only. It is not a summary of this issue. Investors must
read the entire Official Statement to obtain information essential and material to the making of an informed investment decision.
The Bonds are being offered when, as and if issued by the City and accepted by the Underwriter, subject to the approval
of legality of the Bonds by Kutak Rock LLP, Bond Counsel, and to certain other conditions. It is expected that delivery of the
Bonds will be made on or about September 26, 2013, at DTC in New York, New York against payment therefor.
The City of Omaha shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made as
to their correctness indicated herein. They are included solely for the convenience of the holders.
* Priced to first call date of November 15, 2023.
CITY OF OMAHA, NEBRASKA
JEAN STOTHERT, MAYOR
CITY COUNCIL
Pete Festersen, President
Chris Jerram Aimee Melton Rich Pahls Franklin Thompson Ben Gray Garry Gernandt
DEPARTMENT DIRECTORS
Allen Herink............................................................................................................. Acting Finance Director Paul D. Kratz ............................................................................................................................. City Attorney James R. Thele ........................................................................................................ Acting Planning Director Todd Schmaderer ....................................................................................................................... Police Chief Bernard Kanger .................................................................................................................. Interim Fire Chief Brook Bench ........................................................................ Parks, Recreation and Public Property Director Robert Stubbe.............................................................................................................. Public Works Director Mikki Frost........................................................................................................... Human Resources Director Gary Wasdin ........................................................................................................................ Library Director Dana Markel.............................................................................................. Convention and Tourism Director Mikki Frost ......................................................................................... Human Rights and Relations Director
Allen Herink, City Comptroller Buster Brown, City Clerk
AUDITOR KPMG LLP
BOND COUNSEL Kutak Rock LLP
UNDERWRITER
[This page left blank intentionally.]
No dealer, broker, salesperson or other person has been authorized by the City or the Underwriter to
give any information or to make any representations in connection with the Bonds or the matters described
herein, other than those contained in this Official Statement, and, if given or made, such other information or
representations must not be relied upon as having been authorized by the City or the Underwriter. This Official
Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of
the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer,
solicitation or sale. The information and expressions of opinion contained herein are subject to change, without
notice, and neither the delivery of this Official Statement, nor any sale made hereunder, shall, under any
circumstances, create any implication that there has been no change in the matters described herein since the
date hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and
may not be reproduced or used, in whole or in part, for any other purpose. The Underwriter may offer and sell
Bonds to certain dealers and others at prices lower than the offering prices stated on the inside cover page
hereof. The offering prices may be changed from time to time by the Underwriter.
(uses) of financial resources* (785,857) (3,896,110) 1,142,314 2,714,313 6,344,539
Fund balance, beginning of year 6,555,432 5,769,575 1,873,465 3,015,779 5,730,092
Fund balance, end of year $5,769,575 $1,873,465 $3,015,779 $5,730,092 $12,074,631
Source: Records of the Finance Department, City of Omaha
*City of Omaha's procedure in General Fund budgeting is as follows: at the end of each fiscal year the excess, if any, of revenues and adjustments over
expenditures and encumbrances is determined. Any such excess, less extraordinary transfers out, if any, is used as the initial credit to the General Fund Budget
for the second year following the year in which the excess has arisen. The year-end fund balance of $12,074,631 is the sum of the 2010 to 2012 carryover of $2,714,313 and the 2012 to 2014 carryover of $9,360,318.
and other financing sources 2,484,704 (5,486,532) 3,203,764 1,901,922 93,655
Fund balance at beginning of year: 16,491,540 18,976,244 13,489,712 16,693,476 18,595,398
Fund balance at end of year: $18,976,244 $13,489,712 $16,693,476 $18,595,398 $18,689,053
*This fund was created by the City Charter and is sustained by a separate debt service fund property tax levy. Its purpose is to accumulate resources for
servicing the general obligation bonded debt of the City. The actual property tax revenues are derived from a levy of 17.581 cents per one hundred dollars of taxable valuation in 2008, 2009 and 19.281 in 2010, 2011 and 2012.
B-4
CITY OF OMAHA SPECIAL TAX REVENUE REDEVELOPMENT AND
2008 Special Obligation Refunding ( Riverfront ) 2026
Special Tax Revenue Redevelopment 2008* 2028
Special Tax Revenue Redevelopment 2009 A 2029
2012 Special Obligation Refunding (Riverfront)* 2032
Special Tax Revenue Redevelopment Refunding Series 2012A 2032
Special Tax Revenue Redevelopment Refunding Series 2012B 2018
Performing Arts Refunding Redevelopment 2012 2024
The 2012 Special Obligation Refunding Bonds and the 2008 Special Obligation Refunding Bonds are serviced by a variety of revenue sources including Property Tax Revenue,
Tax Allocation Revenue, State Cigarette Tax, NRD Miller Park Contribution, Douglas County Miller Park Contribution, Sewer Fees and Land Sales.
*The debt service for the sewer-related portion of the 2008 and 2012 Special Obligation Bonds is paid directly from the Sewer Revenue Enterprise Fund.
**The City recently refunded the principal amount of this issue with the Performing Arts Refunding Redevelopment Bonds 2012 listed above. The bonds of this issue maturing
in 2013 and 2014 will be paid at maturity.
B-5
CITY OF OMAHA, NEBRASKA SUMMARY OF GENERAL FUND REVENUES AND EXPENDITURES
THROUGH JUNE 30, 2013
2013 Actual Projected Projected Over
Budgeted 6/30/2013 12/31/2013 (Under) Budget
Revenues:
General Property Tax $79,089,535 $45,565,135 $79,089,535 $ -
Motor Vehicle Taxes 9,408,238 4,328,996 10,189,122 780,884
City Sales and Use Tax 135,461,322 63,891,525 128,144,631 (7,316,691)
Business Taxes 35,893,995 14,964,215 33,997,039 (1,896,956)
Source: Records of Accounting Department, Office of the Douglas County Clerk.
Population, Net General Bonded Debt and Per Capita Debt
Year Population1
Net Direct
General Obligation
Bonded Debt2,3
Per Capita
Net Direct
General Obligation
Bonded Debt
1950
1960
1970
1980
1990
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
251,117
301,598
346,929
313,911
335,795
390,007
404,516
408,202
412,679
417,702
423,255
428,263
432,791
438,791
454,731
409,850
416,855
419,041
$ 11,100,500
30,697,871
71,586,248
73,939,298
115,435,013
408,103,671
423,338,935
417,421,740
421,869,470
439,551,010
465,864,465
464,368,152
520,334,932
539,312,795
532,339,481
509,486,524
500,154,602
498,105,711
$ 44.00
102.00
206.00
236.00
344.00
1,046.00
1,047.00
1,023.00
1,022.00
1,052.00
1,101.00
1,084.00
1,202.00
1,229.00
1,171.00
1,246.00
1,200.00
1,189.00 1Source: United States Census and Metropolitan Area Planning Agency, City of Omaha. 2Records of the Finance Department, City of Omaha. 3In 1982, the City of Omaha inaugurated a new annexation policy. The current annexation policy is designed to create annual,
balanced annexation packages and establish consistency from year to year. Such annexation packages combine areas with
relatively high outstanding indebtedness in relation to assessed valuation with other areas that have a more positive financial
picture. These balanced packages can then be added to the City without tax increase to cover retirement of the additional debt
assumed by the City. Under this approach, Omaha has grown by approximately 105,130 people and 41 square miles as a result
of annexations since 1980.
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OVERLAPPING DEBT
Listed below are the political subdivisions which have the power to levy taxes and the amount of
net bonded indebtedness of each, as reported to the State of Nebraska Auditor of Public Accounts on
December 17, 2012, applicable to the taxable property within the City of Omaha:
Bonds Outstanding % Applicable to
City of Omaha
Amount
Applicable
Douglas County1 $ 70,185,000 76.25% $ 53,516,062
Omaha-Douglas Public Building Commission2 34,770,000 76.25 26,512,125
School District of Omaha3 264,281,949 85.91 227,044,622
School District of Ralston3 27,449,600 72.78 19,977,818
School District of Millard3 127,665,000 62.65 79,982,122
School District of Elkhorn3 141,895,000 49.24 69,869,098
Westside Community Schools 23,745,000 100.00 23,745,000
Total $689,991,549 $500,646,847
1 Douglas County, under various lease purchase agreements, is obligated to provide for annual rental payments. The annual
payments on those lease purchase agreements, mostly short-term, are in each case $500,000 or less. 2 Payable from certain property tax revenues and payments to be made to it by the City of Omaha and Douglas County under
certain contractual agreements. Actual rental payments by the City for 2012 were $1,583,353. The Act authorizing issuance of
bonds by the Omaha-Douglas Public Building Commission (the “Commission”) permits the Commission to levy a tax of $0.017
per $100 of actual valuation on all the taxable property in Douglas County; the levy for 2012-13 is $0.013 per $100 of actual
valuation. However, although the same Act authorizes the City to levy a tax on all the taxable property in the City, except
intangible property, of $0.017 per $100 of actual valuation in excess of the Charter limitation described under “AUTHORITY TO
LEVY TAXES,” if and to the extent necessary to make the City’s payments to the Commission, no such levy has ever been made
by the City for such purpose. 3 Tax levies for general obligation bond sinking fund purposes are unlimited as to amount. Residents of the City reside in one of
the five school districts and pay taxes only to that school district and the Learning Community. These numbers represent bonds
outstanding as of August 31, 2012.
The City’s ratio of direct and overlapping debt ($1,056,211,230) to its 2012 property valuation
($27,913,680,440) is 3.78%.
LONG-TERM CONTRACTUAL AGREEMENTS
The City of Omaha, under certain existing contractual agreements (including lease purchase
agreements), is obligated to provide for annual payments which are a charge on the General Fund and the
Parking Revenue Fund. From 2013 to 2036, the highest annual payment is $16,640,589 (in 2014), the
lowest is $7,435,015 (in 2036), and the average annual payment is $10,846,645. Such annual payments
are included as General Fund budgetary items for which annual appropriations are required. Under the
Charter of the City of Omaha, the outstanding amount of any lease purchase agreements executed by the
City as vendee or as lessee is not chargeable against the City debt limit.
B-10
City of Omaha and Local Authorities and Districts
Revenue and Special Obligation Bonds Outstanding1
as of December 31, 2012
City of Omaha:
Tax Increment Bonds and Notes $ 305,094,734
Special Tax Revenue Bonds 40,580,000
Highway Allocation Revenue Bonds 1,675,000
Convention Center Hotel Revenue Bonds 145,325,000
Special Obligation Bonds* 76,685,000
Omaha Public Power District 2,052,783,000
Airport Authority of the City of Omaha 23,940,375
Sanitary Sewerage System Revenue Bonds 212,040,000
Nebraska Department of Environmental Control Sewer Revenue Notes 13,071,421
Metropolitan Utilities District 180,601,259 _______________________ 1Revenue bond indebtedness is not general obligation debt of the City. Principal and interest are paid solely from revenues
arising from operations of the respective City facilities or of the Authority or District issuing such revenue bonds. No taxes are
levied for payment of either principal or interest. Nor are the Tax Increment Bonds and Notes and Special Tax Revenue Bonds
referred to above general obligations of the City. Principal and interest are paid (1) either from that portion of the ad valorem tax
on real property in a redevelopment project which is in excess of that portion of the ad valorem tax upon real property in such
redevelopment project produced by the levy at the rate fixed each year by or for each public body levying a tax in such
redevelopment project on the valuation for assessment of the taxable real property as last certified for the year prior to the
providing for division of such taxes pursuant to the redevelopment plan or (2) from special tax revenues collected pursuant to
redevelopment laws. *Including $17,252,935 principal amount payable from sewer revenues.
B-11
TOTAL PROPERTY TAX LEVIES IN THE CITY OF OMAHA
(Levied on Real and Tangible Personal Property)
2008 2009 2010 2011 2012 2013
City of Omaha
Amount per $100 of actual Valuation
(Rounded to four decimals)
General Fund $.2431 $.2431 $.2611 $.2845 $.2845 $.2845
Debt Service Fund .1759 .1759 .1759 .1928 .1928 .1928
Judgment Fund .0060 .0060 .0060 .0060 .0060 .0060
Redevelopment Fund .0089 .0089 .0089 .0159 .0159 .0159
Total for City of Omaha $.4339 $.4339 $.4759 $.4992 $.4992 $.4992
2008-09 2009-10 2010-11 2011-12 2012-13
(Amount per $100 of actual Valuation)
Other Taxing Units
Douglas County $ 0.24519 $ 0.26459 $ 0.26459 $ 0.26459 $ 0.26459
Library-(Unincorporated Areas Only) 0.01807 0.01553 0.01927 0.04791 0.00000
School District of Omaha1 1.20064 0.25572 0.25863 0.25909 0.25465
School District No. 66 of Douglas County1 1.25302 0.29106 0.32890 0.32890 0.35063
School District of Ralston1 1.29738 0.30785 0.32470 0.31280 0.32409
School District of Millard1 1.20997 0.25000 0.26000 0.26000 0.26000
School District of Elkhorn1 1.30499 0.34499 0.36500 0.36499 0.36499
State Educational Service Units2 0.01500 0.01500 0.01500 0.01500 0.01500
Learning Community General3 - 0.96500 0.95125 0.96000 0.95000
Elementary Learning Center - 0.00000 0.00000 0.00000 0.10000
1Residents in Omaha reside in one of the above five school districts and pay taxes only to that school district. 2Residents residing in school districts other than the School District of Omaha pay $0.01606 for years 2012-2013, $0.01609 for years 2011-2012,
$0.01618 for years 2009-10, $0.01642 for years 2008-09 and $0.01629 for years 2007-08. 3Comprised of all 11 school districts within Douglas and Sarpy Counties, the Learning Community implemented a common property tax levy among the 11 school districts with the purpose of helping distribute property tax revenue more evenly throughout the school districts in the area.
B-12
MAJOR TAXPAYERS
The following are firms located within the City of Omaha with real estate valuations in excess of
$25,000,000 as of June 27, 2013.
Taxpayer Value of Real Property
FIRST DATA RESOURCES INC $108,122,000
OAK VIEW MALL LLC 103,206,100
UNITED OF OMAHA LIFE INS 95,101,200
WESTROADS MALL LLC 92,602,800
168TH AND DODGE LP 90,337,700
NEBRASKA FURNITURE MART 66,198,500
IRET-MR9 LLC 54,360,600
COMMERCIAL FED SAV & LOAN 48,357,800
CLF LANDMARK OMAHA LLC 46,177,800
SFI LTD PARTNERSHIP 45,325,000
WAL-MART REAL ESTATE BUS TR 45,146,800
FIRST NATIONAL BANK OMAHA 44,258,000
TARGET CORPORATION 41,888,600
EM OMAHA OWNER LLC 40,368,700
ALEGENT HEALTH 40,098,100
WOODMEN OF THE WORLD LIFE INS 40,000,000
OMAHA PLAZA INVESTMENTS LLC 36,287,300
WACHOVIA DEVELOPMENT CO 35,524,000
CAGR LLC 34,761,700
BISHOP CLARKSON MEMORIAL HOSP 33,396,300
GUARANTEE MUTUAL LIFE 31,132,000
WELLS FARGO BANK NEBRASKA 31,074,300
WEST TELESERVICES CORP 30,500,000
OMAHA MARKETPLACE HOLDINGS LLC 30,451,200
WESTPLEX LIMITED PARTNERSHIP 30,060,300
CONNECTICUT NATL BANK TR 30,000,000
AIRLITE PLASTICS CO 29,921,600
CONAGRA FOODS INC 29,245,000
LOZIER CORP 29,151,000
REGENCY LAKESIDE ASSOC LLC 28,750,800
IRET PROPERTIES 28,652,300
WAL-MART REAL ESTATE BUSINESS 28,398,300
FIRST NATL OF NEBR INC 28,216,300
BUCKS INC 26,690,800
VK BLONDO PROPERTIES LP 25,890,300
WIESMAN DEVELOPMENT LLC 25,508,900
Source: Records of the Tax Control Supervisor, Office of the Douglas County Clerk
B-13
DEBT MANAGEMENT
General Obligation Debt Margin
Article V, Section 5.27, Home Rule Charter of the City of Omaha, 1956, as amended, provides:
The total amount of general obligation indebtedness outstanding at any time, which shall
include bonds issued but shall not include bonds authorized until they are issued, shall
not exceed 3.5 per cent of the actual value of taxable real and personal property in the
city.
Computation of the general obligation debt margin as defined in the Home Rule Charter, based
upon valuations, reflects the following:
Maximum debt limit (3.5% of total assessed valuation) $976,978,815
General obligation bonds outstanding 516,794,764
Less balance in General Obligation Debt
Service Fund December 31, 2012
(18,689,053) (498,105,711)
General obligation debt margin $478,873,104
Revenue bond indebtedness, special obligation bonds, general obligation notes and
lease-purchase agreements are not chargeable against the general obligation debt margin. The City of
Omaha has no general obligation notes outstanding. Revenue and special obligation bond indebtedness
and lease purchase agreement obligations are set forth herein under the captions “OVERLAPPING
DEBT” and “LONG-TERM CONTRACTUAL AGREEMENTS—City of Omaha and Local Authorities
and Districts Revenue and Special Obligation Bonds Outstanding.”
Debt Payment Record
The City of Omaha has never defaulted on its obligations to pay principal of or interest on its
indebtedness.
General Obligation Bonds Authorized But Unissued
Not including the applicable portion of the Bonds, the City has $68,371,000 of general obligation
bonds authorized but unissued which were approved by the City electorate on May 11, 2010. The City
anticipates that these bonds will be issued in varying amounts annually through 2016.
CASH RESERVE FUND
At a special City election held on November 6, 1984, voters of the City approved an amendment
to Section 5.03 of the City Charter to provide in subsection (10) for the establishment of a cash reserve
fund (“Cash Reserve Fund”) for the purpose of meeting emergencies arising from:
(a) the loss or partial loss of a revenue source;
(b) an unanticipated expenditure demand due to a natural disaster, casualty loss or
act of God;
B-14
(c) expenditure demand for the satisfaction of judgments and litigation expenses
when the Judgment Levy Fund balance is inadequate; or
(d) conditions wherein serious loss of life, health or property is threatened or has
occurred.
The 1984 amendment to the City Charter authorized the appropriation at the close of any fiscal
year for credit to the Cash Reserve Fund of any amount, or portion thereof, held as General Fund surplus.
Income earned on amounts credited to the Cash Reserve Fund is retained in the fund. The maximum size
of the Cash Reserve Fund was established at an amount equal to 4% of General Fund appropriations.
The ordinance adopted by the City Council to close Fiscal 1984 Accounts provided that the sum
of $1,600,000 be transferred from 1984 available budgetary balances as the initial credit to the Cash
Reserve Fund to be held as provided in Section 5.03(10) of the City Charter. In 2012, $750,000 was
appropriated from the General Fund, leaving the balance as of December 31, 2012 of $4,044,945.
EMPLOYEE RELATIONS: RETIREMENT SYSTEMS
General
The City of Omaha negotiates with four major unions: The Civilian Management Professional
and Technical Employees Council; The Omaha City Employees, Local No. 251; The Omaha Association
of Firefighters, Local No. 385 (the “Fire Union”); and The Omaha Police Union, Local No. 1 (the “Police
Union”). Current agreements with the four unions expire or expired as follows: The Civilian
Management Professional and Technical Employees Council—December 22, 2012; Fire Union—
December 20, 2014; Omaha City Employees, Local No. 251—December 22, 2012; and Police Union,—
December 21, 2013. See “CITY OF OMAHA EMPLOYEES’ RETIREMENT SYSTEM—Current
Developments” regarding the status of contract negotiations between the City and the civilian bargaining
groups.
The negotiating procedure involves meeting with the designated union representatives and
discussing economic and noneconomic items regarding contractual agreements. At any time, should an
impasse be reached, Nebraska law provides that either party may appeal to the Nebraska Commission of
Industrial Relations. Either party may appeal the decision of such Commission to the Nebraska Supreme
Court, whose decision is final.
Investors should note that (i) the information included in herein relating to the City’s Uniform
Plan and Civilian Plan (each as hereinafter defined) relies on information produced by Cavanaugh
Macdonald Consulting, LLC (the “Actuary”), (ii) actuarial assessments are “forward-looking”
information that reflect the judgment of the fiduciaries of the plans, and (iii) actuarial assessments are
based upon a variety of assumptions, one or more of which may prove to be inaccurate or be changed in
the future, and will change with the future experience of plans. The City engaged Cavanaugh Macdonald
Consulting, LLC in 2011 pursuant to a request for proposal process. Cavanaugh replaced Milliman
Consultants and Actuaries as the City’s actuary as of that date.
Actuarial Methods and Assumptions
Valuations of the plans use the “entry age-normal” cost method. Under this actuarial method, the
value of future costs attributable to future employment of participants is determined. The value of future
costs attributable to past employment of participants, which is called the actuarial liability, is equal to the
present value of benefits less the present value of future normal costs. The unfunded actuarial liability is
B-15
equal to the excess of the actuarial liability over assets. The unfunded actuarial liability is funded as a
level percent of payroll over a 30-year closed period that began—in regards to the Civilian Plan on
January 1, 2002 and in regards to the Uniform Plan on January 1, 2003. The City’s annual Civilian Plan
and Uniform Plan expenses are calculated based on the annual required contribution of the employer
(“ARC”), an amount actuarially determined in accordance with the parameters of GASB 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year
and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years.
As experience develops with the plans, actuarial gains and actuarial losses result. These actuarial
gains and losses indicate the extent to which actual experience is deviating from that expected on the
basis of the actuarial assumptions. In each year, as they occur, actuarial gains and losses are recognized
in the unfunded actuarial liability as of the actuarial valuation date.
The plans use an asset-smoothing method in the actuarial valuation process. As a result, each
plan’s funded status and the targeted contribution are based on the actuarial (smoothed) value of assets –
not the actual market value. See the two tables below for a comparison of each plan’s Market Value of
Assets to its Actuarial Value of Assets.
CIVILIAN PLAN
Date Market Value of
Assets (MVA)
Actuarial Value of
Assets (AVA)
AVA /
MVA
1/1/2008 $294,658,022 $283,243,750 96.13%
1/1/2009 204,452,506 245,343,007 120.00%
1/1/2010 213,219,632 240,109,413 112.61%
1/1/2011 232,346,583 240,291,310 103.42%
1/1/2012 215,434,784 236,741,347 109.89%
1/1/2013 223,233,088 235,591,941 105.54%
UNIFORM PLAN
Date Market Value of
Assets (MVA)
Actuarial Value of
Assets (AVA)
AVA /
MVA 1/1/2008 $529,923,390 $530,493,413 100.1%
1/1/2009 365,923,877 439,108,652 120.0%
1/1/2010 405,390,038 440,478,409 108.7%
1/1/2011 452,640,303 456,158,774 100.8%
1/1/2012 440,429,392 467,375,458 106.1%
CITY OF OMAHA EMPLOYEES’ RETIREMENT SYSTEM
The City of Omaha Employees’ Retirement System (the “Civilian Plan”) became effective on
January 1, 1949. Certain of its provisions, which are governed by Chapter 22.21 of the Omaha Municipal
Code, are summarized herein. The Civilian Plan is a single-employer defined benefit plan with a fiscal
year that ends December 31. Under the Civilian Plan, there are 1,152 active members, 1,002 retirees,
272 beneficiaries, 84 disabled members and 75 deferred vested members for a total of 2,585.
B-16
All city employees except the following are covered by the Civilian Plan: police; firefighters;
persons paid on a contractual or fee basis; seasonal, temporary and part-time employees; and elected
officials who do not make written application to the Civilian Plan. Prior service credit is granted for
employment with the City before January 1, 1949, and membership service credit is granted for
employment thereafter. Compulsory military duty and voluntary military duty in time of war count as
service.
Early retirement is permitted at age 50 with five years of service, with the accrued benefit
reduced 8% per year for retirement prior to age 60. For employees whose age plus service equals or
exceeds 80, the 8% per year reduction is eliminated. An employee’s monthly pension is equal to
2.25% of average final monthly compensation for each year of service.
The historical City contributions are as follows:
Fiscal Year
Ending
Annual Required
Contribution
(ARC)
(a)
Total Employer
Contribution
(b)
% of ARC
Contributed
(b/a)
12/31/2005 $6,877,913 $4,500,192 65.43%
12/31/2006 6,213,801 4,145,033 66.71%
12/31/2007 8,883,617 4,975,039 56.00%
12/31/2008 9,212,669 5,374,082 58.33%
12/31/2009 12,893,331 5,310,754 41.19%
12/31/2010 14,149,386 5,717,610 40.41%
12/31/2011 14,564,847 6,618,110 45.44%
12/31/2012 15,658,045 7,216,050 46.09%
Notes Regarding the above table: (1) The actuarial value of assets is determined based on a method that smoothes the effects of
short term volatility in the market value of investments. The actuarial value is equal to the expected value, based on the assumed
rate of return, plus 25% of the difference between market and expected values. A corridor of 80% to 120% of market value is
also applied; (2) Economic assumptions are as follows: (a) Investment return rate: 8.00%, (b) Salary increase rates: from 10% at
1 year of service to 4% at 20 years of service, (c) Inflation rate: 3.5%, (d) Payroll growth: 4.00%, (e) Post-retirement benefit
increases: Applicable after 5 years equal to the lesser of 3% or $50 per month for members (and their beneficiaries) who retired
on or before January 28, 1998; and (3) The amortization method is a closed 30-year period, level percentage of payroll (the
unfunded actuarial liability is amortized over 19 years as of January 1, 2013).
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B-17
Following is a cash flow analysis of the Civilian Plan for the last five fiscal years:
(1) Results prior to 2011 were provided by the City’s prior actuary and were reported at the end of the year rather than the valuation date.
(2) The prior actuary reported the market value of assets in column (a). The Actuary applied the valuation date methodology for GASB calculations to the
extent the methodology complies with GASB 25 parameters. Information reported as of 1/1/2011 and later accordingly reflects the valuation methodology including the actuarial value of assets.
The City’s annual pension cost and net pension obligation to the Civilian Plan for the fiscal year
ended December 31, 2012 are as follows:
City of Omaha Employees’ Retirement System
Annual Pension Cost and Net Pension Obligation
December 31, 2012
Annual required contribution (ARC) $ 15,658,045
Interest on net pension asset 3,322,571
Adjustment to annual required contribution (3,016,754)
Annual pension cost 15,963,862
Contributions made (7,216,050)
Increase in net pension obligation 8,747,812
Net pension obligation, beginning of year 41,532,143
Net pension obligation, end of year $50,279,955
B-19
Three-year trend information is as follows:
Fiscal
Year
Ending
Annual
Required
Contribution
(ARC)
Percentage
of ARC
Contributed
Net
Pension
Obligation
12/31/2012 $15,658,045 46% $50,279,955
12/31/2011 $14,564,847 45% $41,532,143
12/31/2010 $14,149,386 41% $32,263,609
Asset Allocation
The Pension Board of the Civilian Plan with the recommendation from its investment committee
approves fund manager agreements. Such management agreements provide specific investment
requirements. Updated investment guidelines were adopted by the Civilian Plan in February 2011.
Under the Civilian Plan’s investment guidelines the target range for fixed income assets is between 12%
and 28% of the portfolio value; equity investments shall be 25.5 – 54.0% of the portfolio with large cap
domestics (6.5 – 13.5%), small cap domestics (9.6 – 20.0%), and international equities (9.5 – 20.5%).
Domestic real estate securities shall be 9.5 – 20.5% of the portfolio. The investments may be held
individually or commingled in mutual funds and investment pools. There are no individual investments
greater than 5% with a single issuer. See the table below for a breakdown of investment type and
accompanying asset value:
Investment Type
Market Value
12/31/2012 Percent Allocated
Government Securities $20,278,557 8.60%
Municipal Issues 1,409,593 0.63%
Corporate Bonds 21,076,921 9.40%
Domestic Equities 67,886,568 30.27%
International Equities 36,006,318 16.06%
Domestic Real Estate Securities 36,980,630 16.49%
Commodities 22,342,786 9.96%
Private Equity 12,059,269 5.38%
Cash and Cash Equivalents 6,200,110 2.76%
Total $224,240,753 100.0%
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B-20
Fixed income investments are held in two accounts managed by two different managers:
$34.8 million in managed accounts and $10.7 million in one bond mutual fund. Maturities of the
securities in these commingled funds as of December 31, 2012 are as follows:
Managed Accounts
Maturity Range (Years)
Investment Type Less than 1
year
1-5 6-10 10+
U.S. Treasuries 0.0% 10.0% 7.2% 7.2%
U.S. Agencies 0.4% 14.4% 2.3% 0.3%
Municipal Bonds 0.0% 0.00% 2.2% 1.8%
Corporate Bonds 1.6% 19.2% 22.0% 11.4%
Bond Mutual Funds
Maturity Percent of Total
0-1 years 27.8%
1-5 years 72.2%
6-10 years --
10+ years --
The credit quality ratings of the securities in these two fixed income asset funds as of
December 31, 2012 are as follows:
Managed Accounts
Investment Type Ratings Percent of Total
U.S. Treasuries AAA 9.5%
U.S. Agencies AAA/AA+ 10.0%
Municipal Bonds AAA/A3 2.8%
Corporate Bonds AAA/A3 21.4%
U.S. Agencies BAA1/BBB 1.4%
Corporate Bonds BAA1/BBB 47.9%
Corporate Bonds N/R 7.0%
Bond Mutual Funds
Rating Percent of Total
TSY/AGY 41.5%
AAA/Aaa 39.3%
AA+/A3 15.0%
BBB/Ba2 4.0%
N/R 0.2%
Current Developments
In regard to the Civilian Plan, contribution rates for both the employees and the City were
increased through December 22, 2012. The City and the civilian bargaining groups are continuing to
negotiate solutions to address the Civilian Plan’s unfunded actuarial accrued liability. It is expected that
new contract provisions beginning in 2013 will provide additional funding to the Civilian Plan. The 2014
Budget of the City includes an additional 5% City contribution to the Civilian Plan in 2014.
B-21
POLICE AND FIRE RETIREMENT SYSTEM
The City of Omaha Police and Fire Retirement System (the “Uniform Plan”) became effective on
July 1, 1961. Certain of its provisions, which are governed by Chapter 22.61 of the Omaha Municipal
Code, are summarized herein. The Uniform Plan is a single-employer defined benefit plan with a fiscal
year that ends December 31. Under the Uniform Plan, there are 1,411 active members, 947 retirees,
393 beneficiaries, 237 disabled members and 11 deferred vested members for a total of 2,844.
Membership in the Uniform Plan is limited to and shall include only probationary and regular
uniformed personnel of the Police and Fire Departments. Under the new December 2012 contract
between the City and the Fire Union, the minimum years of service required to qualify for a maximum
pension benefit of 75% of average monthly compensation increased by five years for existing sworn fire
personnel with less than 15 years of service. Additionally, the minimum years of service required for new
hires to qualify for the maximum pension benefit without penalty increased by 10 years from the old
contract and the maximum benefit for such new hires is now capped at 65% of average monthly
compensation. Further, new hires under the contract that retire prior to the age of 55 face a penalty on
their pension benefits. In regards to sworn fire personnel with more than 15 years of services at the time
of the new contract, the retirement qualifications remain as they were—with 25 years of service or more,
an employee can retire at the minimum age of 45 with a lifetime monthly retirement benefit equal to
75% of average final monthly compensation and with a minimum of 20 years of service, an employee can
retire at the age of 50 with a lifetime monthly service retirement benefit equal to 55% of average monthly
compensation. For sworn police personnel, under the September 2010 contract the minimum years of
service for a maximum pension benefit of 75% of average monthly compensation increased from 25 years
to 30 years. Additionally, under the new police contract sworn personnel hired after January 1, 2010, the
minimum age for a normal service retirement is 50. For current sworn police personnel, retirement is
optional at 45 with 20 years of service with a lifetime monthly service retirement benefit equal to 50% of
average monthly compensation. With 30 years of service or more, an employee can retire at the
minimum age of 45 with a lifetime monthly retirement benefit equal to 75% of average final monthly
compensation.
The historical City contributions are as follows:
Fiscal Year
Ending
Annual Required
Contribution
(ARC)
(a)
Total Employer
Contribution
(b)
% of ARC
Contributed
( b/a )
12/31/2005 $26,255,804 $17,762,209 67.65%
12/31/2006 31,102,053 20,171,610 64.86%
12/31/2007 34,842,280 20,699,211 59.41%
12/31/2008 38,073,021 21,700,806 57.00%
12/31/2009 50,507,561 22,701,608 44.95%
12/31/2010 55,488,062 24,183,493 43.58%
12/31/2011 49,945,979 30,775,568 61.62%
12/31/2012 54,310,693 35,302,037 65.00%
Notes Regarding this Schedule: (1) The actuarial value of assets is determined based on a method that smoothes the effects of short term volatility in the market value investments. The actuarial value is equal to the expected value, based on the assumed rate of return, plus 1/3 of the difference
between market and expected values. A corridor of 80% to 120% of market value is also applied; (2) Economic assumptions are as follows:
(a) Investment return rate: 8.00%, (b) Salary increase rates: from 6.5% at 1 year of service to 4% at 30 years of service, (c) Inflation rate: 3.5%, (d) Payroll growth: 4.00%, (e) Post-retirement benefit increases: the lesser of 3% or $50 ($65 for Fire retirements after June 30, 2007. The
increase will be made annually, beginning in the 13th month of retirement); and (3) The amortization method is a closed 30-year period, level
percentage of payroll (the unfunded actuarial liability is amortized over 21 years as of January 1, 2012).
B-22
Following is a cash flow analysis of the system for the last five fiscal years:
Actuarial valuations on an ongoing plan involve estimates of the value-reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are
made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and the plan members) and include benefits provided at the time of each
valuation and the historical pattern of sharing benefit costs between the employer and plan member to that
point. The actuarial methods used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations. In the January 1, 2012 actuarial valuation, the unprojected unit
credit actuarial cost method was used. The actuarial assumptions included a 3% projected
investment rate of return and an annual health care cost trend of 8.10% initially, reduced by decrements
to an ultimate rate of 4.70% after 71 years. Both rates include a 2.50% inflation assumption. The
amortization of the unfunded actuarial accrued liability is calculated assuming 25 annual payments
increasing at 2.75% per year. The amortization method used is the level percentage of projected payroll
method and the amortization period is closed 30-year period beginning in 2007.
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APPENDIX B—CITY OF OMAHA FINANCIAL INFORMATION
PART TWO
Comprehensive Annual Financial Report
(December 31, 2012)
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CITY OF OMAHA, NEBRASKA
COMPREHENSIVE ANNUALFINANCIAL REPORT
FOR
FISCAL YEAR ENDED
•
MAYOR JEAN STOTHERT
DECEMBER 31, 2012
Office of the Mayor— 1819 Farnam Street, Suite 300
Omaha, Nebraska 68183-0300(402) 444-5000
*eo FAX: (402) 444-6059
City of Omaha
Jean Stothert, Mayor
Dear Omaha Citizens and Public Officials:
I am pleased to submit the City of Omaha’s Comprehensive Annuai Financial Report forthe fiscal year that ended December 31, 2012.
A public report from governmental entities of their financial transactions and fundbalances represents the work of those entrusted with public funds on behalf of theirfellow citizens. In Omaha, the work of thousands of dedicated public employees towardtheir department and our community goals are reflected in the pages that follow.Complete and accurate disclosure and explanations of public expenses not only satisf’governmental accounting standards; they provide the transparency citizens expect anddeserve.
Our finance professionals take great pride in their work in developing this report. Iwould like to thank them for their efforts and for working every day to enhance the fiscalstability of our great City.
Sincerely,
Jean StothertMayorCity of Omaha
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CITY OF OMAHA, NEBRASKA
Comprehensive Annual Financial Report
December 31, 2012
Mayor
Jean Stothert
City Council
Pete Festersen District #1
Ben Gray District #2
Chris Jerram District #3
Garrv Gernandt District #4
Rich Pahls District #5
Franklin Thompson District #6
Aimee Melton District #7
City Officials
Buster Brown City Clerk
Allen Herink Acting Finance Director
Michael McDonnell Fire Chief
Steve Kerrigan Acting Human Resources Director
Steve Kerrigan Acting Human Rights and Relation Director
Paul Kratz City Attorney
Gary Wasdin Library Director
Brook Bench Acting Parks, Recreation & Public Property Director
James Thele Acting Planning Director
Todd Schmaderer Police Chief
Robert Stubbe Public Works Director
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CITY OF OMAHA, NEBRASKA
Table of Contents
Page(s)
Introductory Section
Organizational Chart 1Letter of Transmittal 2 — 5Certificate of Achievement for Excellence in Financial Reporting 6
Financial Section
Independent Auditors’ Report 7 _9Management’s Discussion and Analysis (Unaudited) 10—22
Statement of Net Position 23Statement of Activities 24
Fund Financial Statements:Governmental Funds:
Balance Sheet 25Statement of Revenues, Expenditures, and Changes in Fund Balances 26Reconciliation of the Change in Fund Balances of Governmental Funds to the
Statement of Activities 27
Proprietary Funds:Statement of Net Position 28Statement of Revenues, Expenses, and Changes in Fund Net Position 29Statement of Cash Flows 30
Fiduciary Funds:Statement of Fiduciary Net Position 31Statement of Changes in Fiduciary Net Position 32
Discretely Presented Component Units:Combining Statement of Net Position 33Combining Statement of Activities 34
Notes to Basic Financial Statements 35 — 89
Required Supplementary Information (Unaudited):Budgetary Comparison Schedule — General Fund 90Notes to Budgetary Comparison Schedule — General Fund 91 —92Schedules of Funding Progress and Employer Contributions 93 — 94
CITY OF OMAHA, NEBRASKA
Table of Contents
Page(s)
Supplemental Information:
Combining Balance Sheet — Nonmajor Governmental Funds 95Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor
Governmental Funds 96Nonmajor Governmental Funds — Special Revenue Funds:
Combining Balance Sheet — Nonmajor Special Revenue Funds 100— 103Combining Statement of Revenues, Expenditures, and Changes in Fund Balances —
Nonmajor Special Revenue Funds 104— 107Budgetary Comparison Schedule — Judgment Fund (unaudited) 108Budgetary Comparison Schedule — Library Fine and Fees Fund (Unaudited) 109Budgetary Comparison Schedule — Douglas County Library Supplement Fund (Unaudited) 110Budgetary Comparison Schedule — Keno/Lottery Proceeds Fund (Unaudited) 111Budgetary Comparison Schedule — SID Administrative Fees Revenue Fund (Unaudited) 112Budgetary Comparison Schedule — Storm Water Fee Revenue Fund (Unaudited) 113Budgetary Comparison Schedule — City Street Maintenance Fund (Unaudited) 114Budgetary Comparison Schedule — Street and Highway Allocation Fund (Unaudited) 115Budgetary Comparison Schedule — Interceptor Sewer Construction Fund (Unaudited) 116Budgetary Comparison Schedule — Community Park Development Fund (Unaudited) 117Budgetary Comparison Schedule — State Turn Back Revenue Fund (Unaudited) 118Budgetary Comparison Schedule — Keno/Lottery Reserve Fund (Unaudited) 119Budgetary Comparison Schedule — Greater Omaha Convention and Visitors
Bureau Fund (Unaudited) 120Budgetary Comparison Schedule — Household Chemical Disposal Fund (Unaudited) 121
Nonmajor Governmental Funds — Debt Service Funds:Balance Sheet — Nonmajor Debt Service Fund 123Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor Debt
Service Fund 124Budgetary Comparison Schedule — Debt Service Fund (Unaudited) 125Budgetary Comparison Schedule — Riverfront Redevelopment Special Tax Fund (Unaudited) 126
Nonmajor Governmental Funds — Capital Project Funds:Combining Balance Sheet — Nonmajor Capital Project Funds 130 — 132Combining Statement of Revenues, Expenditures, and Changes in Fund Balances —
Nonmajor Capital Project Funds 133 — 135Budgetary Comparison Schedule — Advanced Acquisition Fund (Unaudited) 136Budgetary Comparison Schedule —2010 Environmental Bond Fund (Unaudited) 137Budgetary Comparison Schedule —2006 Transportation Bond Fund (Unaudited) 138Budgetary Comparison Schedule —2010 Transportation Bond Fund (Unaudited) 139Budgetary Comparison Schedule —2006 Public Facilities Bond Fund (Unaudited) 140Budgetary Comparison Schedule —2010 Public Facilities Bond Fund (Unaudited) 141Budgetary Comparison Schedule — 2006 Public Safety Bond Fund (Unaudited) 142
CITY OF OMAHA, NEBRASKA
Table of Contents
Page(s)
Budgetary Comparison Schedule —2010 Public Safety Bond Fund (Unaudited) 143Budgetary Comparison Schedule — 2006 Parks and Recreation Bond Fund (Unaudited) 144Budgetary Comparison Schedule —2010 Parks and Recreation Bond Fund (Unaudited) 145Budgetary Comparison Schedule — Downtown Stadium and Companion
Projects Fund (Unaudited) 146Budgetary Comparison Schedule — Pedestrian Trail Bridge-Joint Use (Unaudited) 147Budgetary Comparison Schedule — Special Assessment Funds (Unaudited) 148
Nonmajor Govemmental Funds — Permanent Funds:Combining Balance Sheet — Nonmajor Permanent Funds 150Combining Statement of Revenues, Expenditures, and Changes in Fund Balances—
Nonmajor Permanent Funds 151Budgetary Comparison Schedule — Western Heritage Permanent Fund (Unaudited) 152
Nonmajor Enterprise Funds:Combining Statement of Net Position — Nonmajor Enterprise Funds 154Combining Statement of Revenues, Expenses, and Changes in Net Position — Nonmajor
Pension Trust Funds:Combining Statement of Fiduciary Net Position — Pension Trust Funds 158Combining Statement of Changes in Fiduciary Net Position — Pension Trust Funds 159
Agency Funds:Combining Statement of Fiduciary Assets and Liabilities — Agency Funds 162 — 164Combining Statement of Changes in Assets and Liabilities — Agency Funds 165 — 167
Statistical Section (Unaudited)
Net Position by Component 169Changes in Net Position 170 — 171Fund Balances of Govemmental Funds 172Changes in Fund Balances of Governmental Funds 173Tax Revenues by Source 174Assessed Value and Estimated Actual Value of Taxable Property 175Direct and Overlapping Govemments 176Principal Property Taxpayers 177Property Tax Levies and Collections 178Total City Taxable Sales 179Direct and Overlapping Governments 180Ratios of Outstanding Debt by Type 181Ratios of General Obligation Debt Outstanding 182Direct and Overlapping Governmental Activities Debt 183
CITY OF OMAHA, NEBRASKA
Table of Contents
Page(s)
Legal Debt Margin Information 184Pledged Revenue Coverage 185 — 186Demographic and Economic Statistics 187Principal Employers 188Full-Time Equivalent City Government Employees by FunctionlProgram 189Operating Indicators by Function/Program 190Capital Asset Statistics by FunctionlProgram 191
INTRODUCTORY SECTION
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Finance Department
Omaha/Douglas Civic Center1819 Farnam Street, Suite 1004Omaha Nebraska 68 183-1004
(402) 444-5416Telefax (402) 546-1150
Allen R. Herink
City of Omaha Acting Director
Jean Stothert, Mayor Comptroller
July 31, 2013
To the Honorable Mayor, Members of the City Council,and Citizens of the City of Omaha:
State law requires that all general-purpose local govemments publish within six months of the close ofeach fiscal year a complete set of financial statements presented in conformity with generally acceptedaccounting principles (GAAP) and audited in accordance with generally accepted auditing standards by afirm of licensed certified public accountants. Pursuant to that requirement, we hereby issue thecomprehensive annual financial report of the City of Omaha (the City) for the fiscal year endedDecember 31, 2012.
This report consists of management’s representations conceming the finances of the City of Omaha.Consequently, management assumes full responsibility for the completeness and reliability of all of theinformation presented in this report. To provide a reasonable basis for making these representations,management of the City of Omaha has established a comprehensive internal control framework that isdesigned both to protect the government’s assets from loss, theft, or misuse and to compile sufficientreliable information for the preparation of the City of Omaha’s financial statements in conformity withGAAP. Because the cost of internal controls should not outweigh their benefits, the City of Omaha’scomprehensive framework of internal controls has been designed to provide reasonable rather than absoluteassurance that the financial statements will be free from material misstatement. As management, we assertthat, to the best of our knowledge and belief this financial report is complete and reliable in all materialrespects.
The City of Omaha’s financial statements have been audited by KPMG LLP, a firm of licensed andcertified public accountants. The goal of the independent audit was to provide reasonable assurance that thefinancial statements of the City of Omaha for the fiscal year ended December 31, 2012, are free of materialmisstatement. The independent audit involved examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements; assessing the accounting principles used and significantestimates made by management; and evaluating the overall financial statement presentation. Theindependent auditor concluded, based upon the audit, that there was a reasonable basis for renderingunqualified opinions that the City of Omaha’s financial statements for the fiscal year ended December 31,2012, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as thefirst component of the financial section of this report.
The independent audit of the financial statements of the City of Omaha was part of a broader, federallymandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standardsgoverning Single Audit engagements require the independent auditor to report not only on the fairpresentation of the financial statements, but also on the audited government’s internal controls andcompliance with legal requirements, with special emphasis on internal controls and legal requirements
The Honorable Mayor, Members of the City Council,and Citizens of the City of Omaha
July 31, 2013
involving the administration of federal awards. These reports are available in the City of Omaha’sseparately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompanythe basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letterof transmittal is designed to complement MD&A and should be read in conjunction with it. The City ofOmaha’s MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The City of Omaha, incorporated in 1857, is located in the eastern part of the state of Nebraska, and is the42nd largest city in the nation. The City of Omaha currently occupies a land area of 127 square miles andserves a population of 419,041. The City of Omaha has seen steady upward growth over the past fivedecades and growth of 4.9% between 2000 and 2010. The City of Omaha is empowered to levy a propertytax on both real and personal properties located within its boundaries. It also is empowered by state statuteto extend its corporate limits by annexation, which occurs periodically when deemed appropriate by thegoverning council.
The City of Omaha is operated under the Mayor-Council form of government. The Mayor andseven-member City Council are both elected to four-year terms. The executive and administrative powersof the City of Omaha are vested in the Mayor, who is popularly elected on a non-partisan basis.Agreements with Douglas County provide for the sharing of library, information technology, parks,purchasing, printing, mail, and 911 services between city and county residents.
The City of Omaha provides a full range of services, including police and fire protection, the constructionand maintenance of highways, streets, and other infrastructure, recreational activities and cultural events.The City of Omaha is financially accountable for the Metropolitan Entertainment and ConventionAuthority (MECA) and Heartland Workforce Solutions, Inc. (HWS). MECA is a separate nonprofitcorporation that is responsible for the operation of the Omaha Convention Center/Arena, the CivicAuditorium, and TD Ameritrade Stadium. HWS is a separate 501(c)(3) nonprofit organization thatadministers the Workforce Investment Act activities for adults, youth, and dislocated workers in Douglas,Sarpy and Washington Counties in Nebraska. Additional information regarding both MECA and HWS canbe found in Note 1 (a) in the notes to basic financial statements.
The annual budget serves as the foundation for the City of Omaha’s financial planning and control. Allagencies of the City of Omaha are required to submit requests for appropriation to the Finance Directorduring April of each year. The Finance Director uses these requests as the starting point for developing aproposed budget. The Finance Director then provides the Mayor with a proposed budget. The Mayorreviews all estimates, expenditures, and capital improvements, and makes revisions where necessary. Notlater than 30 days before the tax levy certification date, the Mayor then submits the proposed budget to theCity Council for consideration, at which time the budget becomes a public record and open to inspection.The City Council is required to hold public hearings on the proposed budget and to adopt a final budget nolater than the day prior to the tax levy certification date. The appropriated budget is prepared by fund anddepartment (e.g., police). The Mayor may at any time transfer an unencumbered appropriation balance orportion thereof between appropriations of the same division. Transfers of appropriations between divisionswithin the same department, however, require the special approval of the City Council. Budget-to-actualcomparisons are provided in this report for each individual governmental fund for which an appropriated
The Honorable Mayor, Members of the City Council,and Citizens of the City of Omaha
July 31, 2013
annual budget has been adopted. For the general fund, this comparison is presented on page 90 as part ofthe required supplemental information. For governmental funds, other than the general fund, withappropriated annual budgets, this comparison is presented in the governmental fund subsection of thisreport. which starts on page 95. Also included in the governmental fund subsection are project-lengthbudget-to-actual comparisons for each governmental fund for which a project-length budget has beenadopted (e.g., the CDBG revitalization project special revenue fund and the capital projects funds).
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is consideredfrom the broader perspective of the specific environment within which the City of Omaha operates.
Local Economy. The City of Omaha currently enjoys a favorable economic environment and localindicators point to continued stability. Unemployment in the City of Omaha in 2012 was 4.3%, well belowthe national average. The City of Omaha has a high concentration of its employment in trade,transportation and utilities, professional and business services, education, and healthcare services. The Cityhas a relatively small amount of total employment in manufacturing and government. Over the past decade,Omaha has experienced solid growth, despite two recessions at the national level. The City is the corporateheadquarters for such Fortune 500 companies as: Berkshire Hathaway, Union Pacific, ConAgra Foods,Peter Kiewit, and Mutual of Omaha.
The Greater Omaha Metropolitan Statistical Area (MSA) (which includes the eight-county region ofDouglas, Sarpy, Cass, Saunders and Washington counties in Nebraska and Harrison, Mills andPottawattamie counties in Iowa) has a population of approximately 888,959. The MSA grew by 14.9percent between 2000 and 2011 and is projected to grow another 7.3 percent by 2016. The government’scentral business district is expected to maintain its current occupancy rate with a variety of stores, specialtyshops, commercial businesses, and a rising number of residential living spaces.
Long-Term Financial Planning. The City has a steady capital improvement plan that provides forreinvesting in City streets, public facilities, public safety, libraries, parks, and infrastructure over the nextfive years.
Combined Sewer Overflow (CSO)
Like many communities across the nation, the City of Omaha is addressing its CSO problem byimplementing a CSO Long Term Control Plan. Combined sewer overflow occurs when untreatedwastewater and storm water commingle in a single pipe and spill into Omaha’s rivers and creeks. The totalcost of the program, which the City anticipates will extend over approximately 15 years, is estimated at$1.66 billion in 2009 dollars. Annual borrowing needs for the foreseeable future will be in the range of $75million to $150 million. The City has increased and is increasing its rates and charges for the system on anannual basis for each of the fiscal years 2011 through 2018, primarily for the purpose of paying for the costof the program.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded aCertificate of Achievement for Excellence in Financial Reporting to the City of Omaha for itscomprehensive annual financial report for the fiscal year ended December 31, 2011. In order to be awardeda Certificate of Achievement, a government must publish an easily readable and efficiently organized
The Honorable Mayor, Members of the City Council,and Citizens of the City of Omaha
July 31, 2013
comprehensive annual financial report. This report must satisfy both generally accepted accountingprinciples and applicable legal requirements.
A certificate of Achievement is valid for a period of only one year. We believe that our currentcomprehensive annual financial report continues to meet the Certificate of Achievement Program’srequirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its annualbudget document dated December 31, 2011. In order to qualify for the Distinguished Budget PresentationAward, the government’s budget document must be judged as proficient in several categories, including asa policy document, a financial plan, an operations guide, and a communications device.
The preparation of this request would not have been possible without the efficient and dedicated services ofthe entire staff of the Finance and Administration Department. We would like to express our appreciationto all members of the department who assisted and contributed to the preparation of this report. Credit alsomust be given to the Mayor and the City Council for their unfailing support for maintaining the higheststandards of professionalism in the management of the City of Omaha’s finances.
Respectfully submitted,
Allen R. HerinkActing Finance Director
Certificate ofAchievementfor Excellence
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6
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FINANCIAL SECTION
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KPMG LLPSuite 1501222 South 15th StreetOmaha, NE 68102-1610
Suite 1600233 South 13th StreetLincoln, NE 68508-2041
Independent Auditors’ Report
The Honorable Mayor and Membersof the City Council
City of Omaha, Nebraska:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, the aggregate discretely presented component units, each major fund, and the aggregateremaining fund information of the City of Omaha, Nebraska (the City), as of and for the year endedDecember 31, 2012, and the related notes to the financial statements, which collectively comprise theCity’s basic financial statements as listed in the table of contents.
Management’s Responsibilityfor the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with U.S. generally accepted accounting principles; this includes the design, implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statementsthat are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not auditthe financial statements of Metropolitan Entertainment and Convention Authority (MECA) and HeartlandWorkforce Solutions, which statements are included as discretely presented component units and represent100% of the discretely presented component units as of and for the year ended December 31, 2012. Thosestatements were audited by other auditors, whose reports have been fumished to us, and our opinion,insofar as it relates to the amounts included for MECA and Heartland Workforce Solutions, is based solelyon the reports of the other auditors. We conducted our audit in accordance with auditing standardsgenerally accepted in the United States of America and the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whetherthe basic financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors’ judgment, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In makingthose risk assessments, the auditors consider internal control relevant to the entity’s preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements.
KPMG LLP is a Delaware limited liability partnership,the U.S. member firm of KPMG letereahonal Cooperative(KPMG leternatioeal”), a Swiss entity.
W4
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.
Opinions
In our opinion, based on our audit and the report of the other auditors, the financial statements referred toabove present fairly, in all material respects, the respective financial position of the governmentalactivities, the business-type activities, the aggregate discretely presented component units, each majorfund, and the aggregate remaining fund information of the City of Omaha, Nebraska, as of December 31,2012, and the respective changes in its financial position and, where applicable, cash flows thereof for theyear then ended in accordance with U.S. generally accepted accounting principles.
Other Matters
Required Supplementary Information
U.S. generally accepted accounting principles require that the management’s discussion and analysis onpages 10 to 22, the budgetary comparison schedule — general fund on page 90, the notes to budgetarycomparison schedule — general fund on pages 91 to 92, and schedules of funding progress and employercontributions on pages 93 to 94, be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the GovernmentalAccounting Standards Board who considers it to be an essential part of financial reporting for placing thebasic financial statements in an appropriate operational, economic, or historical context. We have appliedcertain limited procedures to the required supplementary information in accordance with auditing standardsgenerally accepted in the United States of America, which consisted of inquiries of management about themethods of preparing the information and comparing the information for consistency with management’sresponses to our inquiries, the basic financial statements, and other knowledge we obtained during ouraudit of the basic financial statements. We do not express an opinion or provide any assurance on theinformation because the limited procedures do not provide us with sufficient evidence to express anopinion or provide any assurance.
Supplementary and Other Injörmation
Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the City’s basic financial statements. The combining and individual nonmajor fund financialstatements and budgetary comparison schedules, and the introductory and statistical sections, are presentedfor purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements are the responsibility of managementand were derived from and relate directly to the underlying accounting and other records used to preparethe basic financial statements. Such information has been subjected to the auditing procedures applied inthe audit of the basic financial statements and certain additional procedures, including comparing andreconciling such information directly to the underlying accounting and other records used to prepare thebasic financial statements or to the basic financial statements themselves, and other additional proceduresin accordance with auditing standards generally accepted in the United States of America. In our opinion,the combining and individual nonmajor fund financial statements are fairly stated in all material respects inrelation to the basic financial statements as a whole.
The introductory section and statistical section and budgetary comparison schedules have not beensubjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly,we do not express an opinion or provide any assurance on them.
8
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 31, 2013 onour consideration of the City’s internal control over financial reporting and on our tests of its compliancewith certain provisions of laws, regulations, contracts, and grant agreements and other matters. Thepurpose of that report is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the City’s internal control over financial reporting andcompliance.
LCP
Omaha, NebraskaJuly 31, 2013
9
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 3 1, 2012
(Unaudited)
The discussion and analysis of the City of Omaha’s (the City) financial performance provides an overall reviewof the City’s financial activities for the fiscal year ended December 31, 2012. The intent of this discussion andanalysis is to look at the City’s financial performance as a whole. Readers should also review the basic financialstatements to enhance their understanding of the City’s financial performance.
Financial Highlights for Fiscal Year 2012
o The assets of the City, on a governmentwide basis excluding component units, exceeded its liabilities at theclose of fiscal year 2012 by $447.3 million (net position). Of this amount, $110.1 million is an unrestricteddeficit, while $496.6 million is the City’s net investment in capital assets, and $60.8 million is restrictedfor specific purposes.
o The City’s total net position decreased by $23.9 million from the prior year. Of this amount, $32.5 millionwas a decrease in governmental activities and $8.6 million was an increase in business-type activities. Thedecrease in net position related to governmental activities is primarily attributable to current year increasesfor net pension obligations by $27.7 million and postretirement benefits obligations by $27.6 million. Theincrease in business-type activities is primarily attributable to an increase in the Sewer Revenue Fund of$13.5 million. This increase was offset by a decrease in net position of the Convention Center Hotel Fundin the amount of $5.5 million.
• As of December 31, 2012, the City’s governmental funds reported combined ending fund balances of$115.6 million, an increase of $52.4 million in comparison with the prior year. This increase is largely dueto the receipt of $21 million from 2011 flood insurance proceeds; pledged Stadium receipts of $7.0million; City Capital Improvement bonds, $5.4 million; Parks and Recreation bonds, $4.6 million; andincreased Street & Highway revenues of $3.2 million. Of the combined governmental funds ending fundbalances, approximately 48.7%, or $56.2 million, is available for spending at the City’s discretion(unassigned and assigned fund balance).
• The general fund, on a current fiscal resources basis, reported a surplus of revenues over expenditures,lapsed encumbrances, and transfers of $9.4 million. Revenues were above budget in the amount of $5.1million and expenditures under budget, lapsed encumbrances and year-end transfers in the amount of $4.3million account for a 2012 year-end carryover reserve of $9.4 million.
• At the end of the current fiscal year, the unassigned/assigned fund balance for the general fund was$44.8 million, or 14.6% of general fund expenditures.
o As of December 31, 2012, the City’s general obligation bond rating from Standard & Poor’s was AAA andMoody’s Investor Service rated the City’s bonds Aal.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. TheCity’s basic financial statements comprise three components: (1) govemmentwide financial statements, (2) fundfinancial statements, and (3) notes to the financial statements. This report also contains other supplementaryinformation in addition to the basic financial statements themselves.
10 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
The basic financial statements include two kinds of statements that present different views of the City:
• The first two statements are govemmentwide statements that provide both long-tenn and short-terminformation about the City’s overall financial status.
The remaining statements are fund financial statements that focus on individual parts of the City’sgovernment, reporting the City’s operations in more detail than the governmentwide statements.
— Governmental fund statements tell how general government services such as public safety werefinanced in the short term, as well as what amounts remain for future spending.
— Proprietary fund statements offer short-term and long-term financial information about the activitiesthe government operates similar to a business, such as the City’s sewage treatment plants orConvention Center Hotel.
— Fiduciary fund statements provide information about financial relationships in which the City actssolely as a trustee or agent for the benefit of others, to whom the pertaining resources belong, forexample, parking fine receipts which are remitted to the school district.
The financial statements also include notes that explain some of the information in the financial statements andprovide more detailed data. The statements are followed by a section of required supplementary information thatfurther explains and supports the information in the financial statements.
Government-wide Financial Statements
The govemmentwide financial statements are designed to provide readers with a broad overview of the City’sfinances, using accounting methods similar to those used by private sector companies. The statement of netposition and the statement of activities, which are the governmentwide statements, include the City’s assets andliabilities using the accrual basis of accounting, which is similar to the accounting used by most private sectorcompanies. All changes in net position are reported as soon as the underlying event giving rise to the changeoccurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statementfor some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned butunused vacation leave).
These two governrnentwide statements report the City’s net position and how it has changed. Net position — thedifference between the City’s assets and liabilities — is one way of measuring the City’s financial health orfinancial position. Over time, increases or decreases in the City’s net position is an indicator of whether itsfinancial health is improving or deteriorating. Other nonfinancial factors, such as changes in the City’s propertytax base and the condition of the City’s roads and other infrastructure, may need to be considered to assess theoverall health of the City.
In the statement of net position and the statement of activities, the City is divided into three categories:
Governmental Activities — Most of the City’s basic services are included here, such as the police, fire, publicworks, parks and recreation, and general administration departments. Taxes and intergovernmental revenuesprincipally support these functions.
11 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
Business-Type Activities — The City charges fees to customers in order to cover the costs of certain services itprovides. The City’s sewer system, air quality control enforcement, compost operation, marinas, golf courses,tennis operation, parking facilities, printing services, river plaza facility, citywide sports, and hotel are includedhere.
Component Units — The City includes two separate legal entities in its report, the Metropolitan Entertainmentand Convention Authority (MECA), and Heartland Workforce Solutions Inc. Although legally separate, these“component units” are important because the City is financially accountable for them and the City provides debtservice funding for the arena and convention center (see note 1).
The governmentwide financial statements can be found on pages 23 and 24 of this report.
Fund Financial Statements
The fund financial statements provide more detailed information about the City’s most significant funds — not theCity as a whole. Funds are accounting mechanisms that the City uses to keep track of specific sources of fundingand spending for particular purposes. The City Charter, state law, and bond covenants require certain funds. TheCity Council or Administration establishes other funds to control and manage money for particular purposes or toshow that the City is properly using certain taxes and grants.
The City has three kinds of funds:
Governmental Funds — Most of the City’s basic services are included in governmental funds, which focus on(1) the flow in and out of cash and other financial assets that can readily be converted to cash and (2) thebalances remaining at year-end that are available for spending. These funds are reported using the modifiedaccrual accounting basis and a current financial resources measurement focus. Consequently, the governmentalfund statements provide a detailed short-term view that helps the reader determine whether there are more orfewer financial resources that can be spent in the near future to finance the City’s programs. The relationshipbetween governmental activities (reported in the statement of net position and the statement of activities) andgovernmental funds is described in a reconciliation that follows the governmental fund financial statements.
The City maintains 93 governmental funds. Information is presented separately in the governmental fund balancesheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for thegeneral fund and debt service fund, which are considered to be major funds. Data from the other governmentalfunds are combined into a single, aggregated presentation.
The City adopts an annual budget for the general fund, as required by the City Charter. A budgetary comparisonstatement is presented for the general fund using the City’s budgetary basis of accounting. This statement reflectsthe following: (a) the original budget, (b) the final budget as amended, (c) actual results, and (d) the variancebetween the final budget and actual results. Because the budgetary basis of accounting differs from the modifiedaccrual basis used in the funds statements, a reconciliation is provided at the end of the statement.
The governmental fund financial statements can be found on pages 25 through 27 of this report.
Proprietary Funds — Services for which the City charges customers a fee are generally reported in proprietaryfunds. Proprietary funds, like the governmentwide statements, provide both short- and long-term financial
12 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
information. The City maintains 15 enterprise funds, which are a type of proprietary fund. Enterprise funds areused to report the same functions presented as business-type activities in the governmentwide financialstatements. The City uses enterprise funds to account for its sewer system, air quality control enforcement,compost operation, marina dredge operations, golf course operations, tennis operation, river plaza facility,parking facilities, printing services, citywide sports, and hotel.
The proprietary fund financial statements can be found on pages 28 through 30 of this report.
Fiduciary Funds — The City is the trustee, or fiduciary, for certain donated funds. The City maintains 24fiduciary funds. It is also responsible for other assets that, because of a trust arrangement, can be used only forthe trust beneficiaries. The City is responsible for ensuring that the assets reported in these funds are used fortheir intended purpose. These activities are reported in a separate statement of fiduciary net position. The Cityexcludes this activity from its govemmentwide financial statements because the City cannot use these assets tofinance its operations. The accounting used for fiduciary funds is much like that used for proprietary funds.
The fiduciary fund financial statements can be found on pages 31 and 32 of this report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in thegovemmentwide and fund financial statements. The notes to the basic financial statements can be found on pages35 through 89 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain requiredsupplementary information concerning the City’s 2012 budget information and the City’s progress in funding itsobligation in both pension and other postemployment benefits. Required supplementary information can be foundon pages 90 through 94 of this report.
City Governmentwide Financial Analysis
As noted earlier, net position (assets over liabilities) may serve over time as a useful indicator of a government’sfinancial position. In the case of the City, assets exceeded liabilities by $447.3 million at the close of fiscal year2012. The City’s net investment in capital assets reflects its investment in capital assets (e.g., land, building,equipment, and infrastructure), less accumulated depreciation, and less any related outstanding debt used toacquire those assets. The City uses these assets to provide services to its citizens, and consequently, these assetsare not available for future spending. The resources needed to repay the debt related to these capital assets mustbe provided from other sources.
13 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
The following table reflects the condensed summary of net position (in millions):
CITY OF OMAHA
Summary of Net Position
Governmental Business-type Total primaryactivities activities government
2012 2011 2012 2011 2012 2011
Current and other assets $ 339 308 190 138 529 446Capital assets 1,104 1,104 662 595 1,766 1,699
Total assets $ 1,443 1,412 852 733 2,295 2,145
Current and other liabilities $ 128 53 42 15 170 68Long-term liabilities 1,147 1,159 531 447 1,678 1,606
Total liabilities andnet position $ 1,443 1,412 852 733 2,295 2,145
Governmental Activities
Net position of the City’s governmental activities decreased $32.6 million (16.3%) to $167.6 million. However, asignificant portion of that net position is either restricted as to the purpose it can be used for or the City’s netinvestment in capital assets (building, roads, bridges, etc.). Consequently, unrestricted net position showed a$209 million deficit at the end of this year. This deficit does not mean that the City does not have the resourcesavailable to pay its current liabilities. Rather, it is the result of having long-term commitments that are greaterthan current available resources. Specifically, the City did not included in past annual budgets the full amountsneeded to finance future liabilities arising from worker’s compensation and healthcare claims ($38.7 million),Civilian employees, Policemen’s and Firemen’s net pension obligation ($201.7 million) and postemploymentbenefits ($137.2 million). The City will include these amounts in future years’ budgets as they become due.
Business-Type Activities
The net position of the City’s business-type activities increased approximately $8.7 million to $279.7 million.The City generally can only use this net position to finance the continuing operation of its enterprise operations.A key element of this increase is the $13.5 million increase in net position incurred by the Sewer Fund.
14 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
The following table shows the revenue and expense of the governmental and business-type activities:
City of Omaha’s Change in Net Position(In millions)
Governmental Business-type Total primaryactivities activities government
2012 2011 2012 2011 2012 2011Revenues:
Program revenues:Charges for services $ 84.2 78.3 94.8 77.0 179.0 155.3Operating grants and
contributions 70.6 81.3 0.9 0.7 71.5 82.0Capital grants and
Increase (decrease) inin net position (32.5) (46.2) 8.6 6.3 (23.9) (39.9)
Net position at beginning ofyear 200.1 246.3 271.1 264.8 471.2 511.1
Net position at end ofyear $ 167.6 200.1 279.7 271.1 447.3 471.2
15 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
Governmental Activities
The City’s total revenues from governmental activities were $505.2 million for the fiscal year endedDecember 31, 2012. The largest source of revenue ($141.8 million in 2012) for the City is property tax. Propertytax increased $2.2 million (1.6 %) during 2012. The city property tax rate is 49.922 cents per $100 of assessedvalue. Property tax valuations for 2012 increased by 1.57% when compared with 2011 valuations.
The City’s expenses for governmental activities cover a wide range of services, with 41.4%, or $221.1 million,for fiscal year 2012 related to public safety and 11.9%, or $63.8 million, for fiscal year 2012 for transportationservices. Overall, the expenses for governmental activities decreased by 1.4% or $7.3 million in 2012. This canlargely be attributed to an $11.2 million decrease in expenditures for culture and parks.
Business-Type Activities
The net position of the City’s business-type activities increased by $8.7 million. The change of net position bythe major enterprise funds and the other nonmajor enterprise funds is presented as follows:
Fund Amount(In millions)
Convention Center Hotel $ (5.5)Parking facilities 0.5Sewer revenue 13.5Other nonmajor enterprise funds 0.2
The Convention Center Hotel Fund began operations in April 2004. The City believes that future operations ofthe Hotel will eliminate this deficit. Annual appropriations from the City will subsidize any debt service shortfall.In October 2011, construction was completed on a 150-room expansion project bringing the hotel’s totalinventory to 600 guestrooms. The expansion project also included an additional ballroom.
The Parking Facilities Fund was established as a tool to manage the City’s eight parking structures and varioussurface lots throughout the City. Lease purchase debt has been issued to finance the construction of the parkingstructures. All operating activities of the Parking Facility Fund have been consolidated within Public Works.The completion of a comprehensive parking-fee study may lead to changes in rates based upon location andhours of enforcement.
In May 2009, the City Council enacted an ordinance increasing sewer use fees by twenty to thirty percentannually beginning in 2012 through 2014. The action provides funding for the sewer system’s capitalimprovements.
The City’s enterprise operations are reviewed on an ongoing basis. Revenues and expenses are adjusted asnecessary to maintain an adequate amount of working capital. Annual appropriations may also be used tosubsidize these funds. The City has decided to account for these activities by the use of enterprise accounting tobetter identify the cost of the services and for better management control.
16 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legalrequirements.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, andbalances of spendable resources. Such information is useful in assessing the City’s financing requirements. Inparticular, unassigned fund balances may serve as a useful measure of a government’s net resources available forspending at the end of the fiscal year.
For the fiscal year ended December 31, 2012, the governmental funds reported combined ending fund balancesof $115.6 million, an increase of $52.4 million in comparison with the prior year. An increase in fund balance inthe amount of $7.3 million for the Downtown Stadium Fund; an increase in the amount of $5.4 million for theStreet and Highway Allocation Fund; an increase in the Capital City improvement Fund of $4.9 million; anincrease of $3.1 million for the 2010 Parks and Recreation Fund and an increase in fund balance in the amountof $19.1 million for the Grant Funds accounted for the majority of the $48.3 million increase in the nonmajorGovernmental Funds fund balance. The fund balance in the General Fund and Debt Service Fund increased$4.0 million and $0.1 million, respectively.
Approximately 48.7% or $56.2 million of the combined fund balance constitutes committed/assigned/unassignedfund balance, which generally is available for spending at the City’s discretion. The remainder of the fundbalance is restricted to indicate that it is not available for new spending, because it has already been committedto:
o pay debt service ($22.5 million)
o public safety purposes ($1.1 million)
o community development ($2.2 million)
• culture and parks purposes ($6.0 million)
o general government purposes ($6.5 million)
o transportation and street system purposes ($13.7 million)
The General Fund is the City’s chief operating fund. The general fund’s assigned/unassigned fund balance atDecember 31, 2012 is $44.8 million, while the total fund balance is $47.9 million. As a measure of the generalfund’s liquidity, it may be useful to compare both the assigned/unassigned fund balance and the total fundbalance to total fund expenditures. The assigned/unassigned fund balance represents 14.6% of the total fundbalance to total fund expenditures, whereas the total fund balance represents 15.6% of that same amount. Thefund balance of the general fund increased by $4.0 million for fiscal year 2012. For budgeting purposes only, the2012 budget surplus of $9.4 million is available for governmental use.
17 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
Another major governmental fund is the Debt Service Fund. The Debt Service Fund has a total fund balance ofS 18.7 million, all of which will be used either for payment of debt service on the City’s general obligation debt orfor payment of debt issuance costs. The Debt Service Fund increased by £0.1 million for fiscal year 2012.
Expenditures, lapsed encumbrances,and transfers 314.0 314.2 312.1
Changes in fund balance $ (2.1) (2.3) 5.0
Proprietary Funds
The City’s proprietary funds provide the same type of information found in the governmentwide financialstatements, but in more detail.
Net position of the Convention Center Hotel Fund, Parking Facilities Fund, Sewer Revenue Fund, and otherenterprise funds amounted to S(37.6) million, S(4.8) million, S320.5 million, and S1.5 million, respectively, atDecember 31, 2012. Additional discussion concerning the finances of these funds has already been addressed inthe discussion of the City’s business-type activities.
There are three types of budget transfers, each requiring a successive level of authority. First, the Mayor may, atany time, transfer an unencumbered appropriation balance or portion thereof between appropriations of the samedivision. Second, transfers between divisions in the same department may be authorized by resolution of the CityCouncil. Third, transfers between departments/agencies may be authorized by ordinance of the City Council. Atthe end of the year, the City Council passed a budget amendment to transfer $1.2 million from the General Fundto the Contingent Liability Fund.
Significant variances between the general fund’s actual revenues and expenditures and the final amended budgetare summarized as follows:
• Sales tax revenue was £0.4 million above budget
• In Lieu taxes and Licenses and Permits were $1.1 million below budget
18 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
• Property tax revenue was $0.6 million above budget
o Business Taxes were $0.9 million above budget
• Restaurant Tax revenues were $5.8 million above budget
o Interest earnings were $0.7 million below budget
o Rents and Royalties and Misc. Revenues were 0.8 million below budget
o Charges for services were $1.4 million above budget
o The Mayor’s Office, City Council, Human Resources, Planning, Parks, Public Works and theLibrary collectively were $1.7 million above budget.
o The City Clerk, Law, Human Rights and Relations, Finance, and Police ended the year $0.6 millionunder budget.
o The Fire Department was $7.2 million over budget.
o Retiree Benefits and Other Agencies were under budget $6.8 million and $4.4 million respectively.
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for its govemmental and business-type activities as of December 31,2012, is $1.8 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings,improvements, machinery and equipment, streets, bridges, storm sewers, sanitary sewers, event facilities, andwastewater treatment plants. The total change in the City’s investment in capital assets for the current year was anet increase of 3.9% (a decrease of 0.1% for governmental activities and an increase of 11.3% for business-typeactivities).
Total $ 1,103.6 1,104.3 662.5 595.0 1,766.1 1,699.3
Major capital asset events during 2012 included the following:
• DOT.Comm Projects for Success infrastructure improvements; current year expenditures were$1.9 million.
19 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
o Construction continued on the City’s sewer system including the Combined Sewer OverflowProgram with capital outlays of $93.6 million.
o Purchases of fire fighting vehicles, aerial ladder truck; current year expenditures were $0.7 million.
o Construction continued on the 144th and Eagle Run Road Project; current year costs were$1.5 million.
• City wide park renovations and construction of City parks; current year expenses were $5.4 million.
o ADA street ramp compliance construction; current year expenditures were $1.7 million.
Construction and repair on lO street bridge over Leahy Mall; current year expenditures were $0.8million.
o Final construction on the Downtown Ballpark Project; current year expenditures were $1.8 million.
o Construction of street improvements on 48th Street from L to Q; current year expenditures were $1.1million.
• Construction in progress citywide totaled $145.6 million.
o Annual citywide depreciation expense for governmental activities totaled $37.9 million.
Additional information on the City’s capital assets can be found in note 11 to the financial statements on pages76 through 80 of this report.
Long-Term Debt
At December 31, 2012, the City had total bonded debt outstanding of $1 .268 billion (including notes payable).Of this amount, $516.8 million is general obligation debt backed by the full faith and credit of the City;$449.8 million of revenue bonds secured solely by specified revenue sources; $57.9 million of special obligationbonds backed by a variety of revenue sources, including sales tax and property tax; $59.4 million of special taxrevenue bonds backed by a redevelopment property tax levy; $167.9 million of lease purchase bonds backed byannual General Fund appropriations; and $16.4 million of notes payable backed by a variety of revenue sources.
Cit) of Omaha’s Outstanding Debt
(In millions)
Governmental Business-typeactivities activities Total
During 2012, the City’s total debt increased by $83.1 million (7.0%). In 2012, the City issued $97.7 million forconstruction of the combined sewer separation project. This issue accounts for the increase in outstanding debt.
At December 31, 2012, the City maintained an AAA rating from Standard & Poor’s Corporation and an Aairating from Moody’s Investors Service on general obligation bonds.
Under the City’s Home Rule Charter, the total amount of general obligation indebtedness outstanding at any timeshall not exceed 3.5% of the actual value of taxable real and personal property in the City. The debt margin as ofDecember 31, 2012, is $478.9 million.
Additional information on the City’s long-term debt can be found in notes 6 and 7 to the financial statements onpages 55 through 65 of this report.
Economic Factors and Next Year’s Budgets and Rates
The City’s property tax base for 2013 is $27.9 billion. This is an increase over 2012 of $430.2 million or 1.6%,primarily due to annexations in 2012. This increase also includes revaluations of existing properties and newgrowth within the City. The property tax rate for 2013 remained the same as 2012 at 49.922 cents per $100 ofvaluation.
o Sales tax collections for 2011 and 2012 have changed, respectively, by (0.2) % and 1.4% over eachof the past two years. For 2012, increased sales tax collections were enough to offset an increase inbusiness incentive tax refunds of $0.9 million. Current net collections through June 2013 show anincrease over the same period in 2012 by 3.9%.
• In the fall of 2011, the City enacted a 2.5% restaurant occupation tax charge on food and beverages.in 2013, the City budgeted restaurant tax revenues at $25.6 million. Collections for 2013 are nowprojected at $25.3 million or $0.4 million under budget.
o Effective January 1, 2013, the state legislature prohibits the City from collecting the wheel tax in thethree mile jurisdiction of Douglas County. This results in a loss of revenue of approximately $3.2million.
• The Sewer Use Fee rate for 2013 increases about 26% over 2012. Anticipated future rate increasesare intended to fund the Combine Sewer Overflow Compliance Project.
• Overall general fund revenue collections for 2013 are projected to be $5.3 million under budget(1.7%) due primarily to LB775 and LB312 sales tax refunds to businesses.
All of these factors were considered in preparing the City’s budget for the 2014 fiscal year.
During 2012, the assigned/unassigned fund balance in the general fund was $44.8 million. The City appropriated$9.4 million of this amount for spending in the 2014 fiscal year. This 2014 appropriation represents the 2012budget balance carried forward. The 2012 budget balance carried forward in the amount of $9.4 million will beappropriated for spending in 2014. The City Charter requires that the general fund budget balance, as of the closeof any particular fiscal year, shall be applied as general fund revenue in the budget for the fiscal year two yearssubsequent to that fiscal year.
21 (Continued)
CITY OF OMAHA, NEBRASKA
Management’s Discussion and Analysis
Year ended December 31, 2012
(Unaudited)
Requests for Information
This financial report is designed to provide citizens, taxpayers, customers, investors, and creditors with a generaloverview of the City’s finances and to demonstrate the City’s accountability for the funds it receives. Questionsconcerning any of the information provided in this report or requests for additional financial information shouldbe addressed to the City of Omaha, Finance Department, Suite 1004, 1819 Famam Street, Omaha, Nebraska68183.
22
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BASIC FINANCIAL STATEMENTS
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CITY OF OMAHA, NEBRASKA
Statement of Net Position
December31, 2012
Liabilities and Net Position
Liabilities:Accounts payable and otherAccrued interest payableDue to other governmentsUnearned revenueLong-term liabilities:
Net pension obligation due in more than one yearPostrctirement benefit obligation due in more than one yearOther liabilitiesCompensated absences:
Due within one yearDue in more than one year
Grants payable:Due within one yearDue in more than one year
Claims and judgments:Due within one year
Workers’ compensation and healthcare claims:Due within one yearDue in more than one year
Bonds, notes, and leases payable:Due within one yearDue in more than one year
Total liabilities
Net position:Net investment in capital assetsRestricted for:
Debt serviceCommunity improvementPerpetual care:
ExpendableNonexpendable
Unrestricted
Total net position
Total liabilities and net position
See accompanying notes to basic financial statements.
— 2,250,000— 13,513,750
— 1,950,000
14,555,22026,596,386
66,780,0491,215,724,325
1,847,594,984
Primary government
Assets
Cash and pooled investmentsI rlvestmentsReceivables (net of allowance for uncollectibles)Due from other governmentsInternal balancesAccrued interestInventoriesOther assetsRestricted assets:
Cash and pooled investments S 560,317 8,251,165 34,234,107 43,045,589Investments 74,153,277 — 4,565,619 78,718,896Receivables (net ofallosvanee for uncollectibles) 92,676,187 55,699.750 28,117,071 176,493.008Dne front nthergovernments 22,994.025 223.942 16,737,214 39,955,181Due from other funds — 10,371,000 — 10,371,000Accnted interest 130,260 — 60.665 190,925Inventories 2.320,144 — — 2,320,144Other assets 10.722 — 498,899 509,621Restricted assets:
Deposits with tmstee — — 10,879,942 10,879.942
Total assets S 192,844,932 74,545,857 95,093,517 362,484,306
Liabilities and Fund Balances
Liabilities:Accounts payable and other S 32,592,307 169,601 9,543,501 42,305,409Due to other governnsents 988,345 — 25,000 1.013,345Due to other funds 30,371,000 — — 30,371.000Unearned revenue 25.360 17,189 4,613,874 4.656,423Advanced revenue 80.959,039 55.670,014 31.903,083 168,532,136
Total liabilities 144,936,051 55,856,804 46.085.458 246,878,313
Total liabilities atid fund balances S 192,844,932 74,545,857 95,093,517
Amounts reported for governmental activilies in the slatementof net position are different because:
Capital assets used in governmental activities arenot linancial resources and, therefore, are notreported in the funds 1,103,629,790
Revenues earned during the current period are notavailable as resources and, therefore, are recognizedas advanced revenue in the funds 168,532,136
Bond costs of issuance are capitalized at the governmentsvide level and amortized over the life of Ilte relatedbonds 6,903,613
Long-term liabilities. including bonds payable and pensionobligations, are not due and payable in the current periodand. therefore, are not reported in the funds (see note 5) (1,227,109,321)
Net position of governmental activities S 167,562,211
See acconspanying notes to basic financial statements.
25
CITY OF OMAHA, NEBRASKA
Statement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental Funds
Year ended December 31, 2012
PropertyMotor vehicleCity sales and uscBusinessIn lieu
Licenses and permitsIntergovernmentalInvestment incomeRevenue from KenoCharges for servicesRents, royalties, and otherContributions and grants
Total revenues
Expenditures:Current:
General governmentPublic safetyTransportation servicesOther public servicesCommunity developmentCulture and parks
Debt service:PrincipalInterestBond issuance costs
Capital outlay
Total expenditures
Excess (deficiency) of revenuesover expenditures
Other financing sources (uses):Transfers inTransfers outSale of capital assetsProceeds from issuance of bondsProceeds from refunding bondsProceeds from bond premiumDiscount on sale of bondsPayment to refunded bond escrow agent
Total other financing sources
Net change in fund balances
Fund balances beginning of year
Fund balances - end of year
$ 79,123,6159,163,518
128,379,32261,614,154
3,956,0318,417,387
(480)722,382554,533
20,613,005965,061107,663
313,616,191
38,505,619206,990,090
1,113,00916,415,1097,233,401
28,841,517
3,984,8733,045,351
257,258
306,386,227
7,229,964
150,000(3,413,203)
53,660,317 7,931,448
717,49222,322
1,536,24939,720,823
444,9886,665,750
31,462,60221,663,716
_______________
49,882,028
_______________
160,047,418
738,724 9,145,101— 6,758,284
47,853,48713,098,52019,010,163
— 4,966,316
4,896,6537,531,931
492,973
_______________
32,562,258
_______________
146,315,686
(579,570) 13,731,732
— 2,176,735— (2,077,007)
658,00042,555,86235,067,0654,073,894
(3,922)
______________
(47,877,188)
______________
34,573,439
48,305,171
140,715,3809,163,518
128,379,32262,331,6464,174,5229,953,636
41,896,0212,133,5067,220,283
54,709,03122,628,77752,404,647
535,710,289
48,389,444213,748,374
48,966,49629,513,62926,243,56433,807,833
47,062,14033,803,919
973,24832,819,516
515,328,163
20,382,126
2,326,735(5,490,210)
658,00077,890,86235,067,065
8,380,765(3,922)
(86,845,834)
31,983,461
52,365,587
See accompanying notes to basic financial statements.
CITY OF OMAHA, NEBRASKA j5Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities — Governmental Funds
Year ended December 31, 2012
Amounts reported for governmental activities iii the statement of activitiesare different because:
Net change in fund balances — total governmental funds $ 52,365,587Governmental finds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimateduseful lives and reported as depreciation expense. This is the amount by whichcapital outlays exceeded depreciation expense in the current period (see note 5). (5,081,487)
The net effect of various miscellaneous transactions involving capital contributionsand sale of capital assets. 901,969
Revenues in the statement of activities that do not provide current financialresources are not reported as revenues in the funds. (19,604,284)
The issuance of long-term debt (e.g., bonds, leases, etc.) and long-term liabilitiesprovides current financial resources to governmental funds, whereas therepayment of the principal of long-term debt consumes the current financialresources of governmental funds. Neither transaction, however, has any effecton net position. Also, governmental funds report the effect of issuance costs,premiums, discounts, and similar items when debt is first issued, whereas theseamounts are advanced and amortized in the statement of activities. This amountis the net effect of these differences in the treatment of long-term debt andrelated items (see note 5). 1,651,233
Some expenses reported in the statement of activities do not require the use ofcurrent financial resources and, therefore, are not reported as expenditures inthe governmental funds (see note 5). (62,778,038)
Change in net position of governmental activities S (32,545,020)
See accompanying notes to basic financial statements.
Total noncurrent liabilities 142,894.053 33,499.237 350.539,711 3,939.169 530,872,170
Total liabilities 147,315,099 36.982,140 383,760,656 4,479,591 572,537,486
Net positionNet investnsent in capital assets (58,781,331) (5,441,990) 196,612,406 4,533,070 136,922,155Restricted for debt service 22,219,931 — 21,219,508 43,439,439Unrestricted (1,028.096) 690,958 102,717.536 (3,002,248) 99,378,150
Total net posilion 137,589,496) (4.751,032) 320.549,450 1,530,822 279,739,744
Total liabilities and net position S 109.725,603 32,231,108 704.310,106 6,010,4t3 852,277,230
See acconspanying notes to basic financial slatements.
28
CITY OF OMAHA, NEBRASKA
Statement of Revenues, Expenses, and Changes in Net PositionProprietary Funds
Operating revenues:Charges for services S 11,147,600 4,064,700 73,321,440 7,244,940 95,778,689
Total operating revenues 11,147,600 4,064,700 73,321,449 7,244.940 95,778,689
Operating expenses:Personal services — 103.121 17,086,095 3,621,586 20,810,802Outside services 146,498 1,552,660 9,461.741 1,217,276 12,378,175Operation and maintenance 1,360,197 65,411 8,478,241 1,619,674 11,523,523Cost of sales and services — — 276,785 276,785Depreciation and amortization 5,442,663 2,410,197 19,039,886 442,464 27,335,210
Total operating expenses 6,949.358 4,131,389 54,065,963 7.177,785 72,324.495
Operating income (lossl 4,198.242 (66,689) 19,255,486 67,155 23,454,194
Nonoperating revenues (expenses):Investment income 100,405 — 306,156 — 406,561Interest expense (9.810.798) (1,902,040) (7,980,699) (15,587) 119,709,124)Oain on disposal of assets — — 9,000 — 9.000
Total nonoperating revenues (expenses), net (9,710.393) (1.902,040) (7,665,543) (15,587) (19,293,563)
Inconse (loss) before contributions and transfers (5,512,151) (1,968.729) 11,589,943 51,568 4,160,631
Transfers in — 2,446.3 19 913,870 — 3,360,189Transfers out — — (196,712) — (196,712)Cotitrihnted capital — — 1,236,274 100,000 1,336.274
Chaitge ut net position (5,512.151) 477,590 13,543,375 151,568 8,660,382
Net positiott at beginnittg of year (32,077,345) (5,228,622) 307,006,075 1,379.254 271,079.362
Net position at end of year S (37.589,496) (4,751.032) 320,549,450 1,530,822 279,739,744
See accompanying notes to basic titiancial statements.
29
CITY OF OMAHA, NEBRASKA
Statement of Cash Flows — Proprietary Funds
Year ended December 31, 20 2
Cash flows front operating activities:Receipts from customersPayments to suppliersPayments to employees
Net cash provided by operating activities
Cash flosvs from noitcapital financing activities:Transfers in/osttAdvances front (to) otlter fttnds
Net cash provided by (itsed in) ttoncapitalfinancing activities
Cash flows from capital and related financing activities:Capital expenditttresCapital contributedDebt issoance costsPayments Ott long-term debtlsstiance of long-term debtPrentiutti received on issuance
of long-term debtInterest paid
Net cash used in capital and relatedfinancing activities
Cash flows front ittvesting activities:Net sale/pttrcltases of investment securities, netInterest received
Net cash provided by (itsed in) ittvestittg activities
Net increase (decrease) in cash and cash equivalents
Cash and cash eqttivalents, beginning of year
Caslt and cash eqttivalettts, end of year
Recottciliation of operating incoitse (loss) to itet cash provided byoperating activities:
Operating ittcottle (loss)Adjttstmeitts to reconcile operating income (loss) to set cash provided
by (ttsed in) operatittg activities:Depreciation and amortizationCaslt tlosvs intpacted by chattges in:
Due from other governments 1,089 1,089Due from other funds 1,221,300 1,221,300investments, at fair value:
Government securities 37,312,465 1,196,423 38,508,888Municipal issues 3,879,158 — 3,879,158Corporate bonds 117,525,803 117,525,803Domestic equities 227,181,818 — 227,181,818International equities 125,170,190 125,170,190Domestic real estate securities 133,107,674 133,107,674International real estate 1,503,535 1,503,535Commodities 33,493,365 33,493,365Private equity 12,059,269 — 12,059,269Cash and cash equivalents 19,508,721
_______________
19,508,721
Total assets 715,437,723 10,770,910 726,208,633
Liabilities:Accounts payable and other liabilities 2,404,496 10,770,910 13,175,406
Total liabilities 2,404,496 10,770,910 13,175,406
Net position held in trust for pension benefits $ 713,033,227 713,033,227
See accompanying notes to basic financial statements.
31
CITY OF OMAHA, NEBRASKA
Statement of Changes in Fiduciary Net Position —
Pension Trust Funds
Year ended December 31, 2012
Additions:Contributions:
Employer $ 42,518,087Employee 25,843,583
Total contributions 68,361,670
Investment earnings:Dividends and interest 21,004,508Net increase in the fair value of investments 61,057,680
Total investment earnings 82,062,188
Less investment expenses (3,853,291)
Net investment income 78,208,897
Total additions 146,570,567
Deductions:Benefit payments 89,401,515
Change in net position 57,169,052
Net position, beginning of year 655,864,175
Net position, end of year $ 713,033,227
See accompanying notes to basic financial statements.
32
CITY OF OMAHA, NEBRASKA
Discretely Presented Component UnitsCombining Statement of Net Position
December 31, 2012
WorkforceAssets MECA Solutions Total
Cash and pooled investments $ 15,243,146 309,376 15,552,522Investments 21,167,800 21,167,800Receivables (net of allowance for uncollectibles) 3,731,277 9,602 3,740,879Due from other governments 352,491 352,491Other assets 2,470,246 2,470,246Capital assets:
Liabilities:Accounts payable and other $ 24,566,810 293,414 24,860,224Long-term liabilities:
Other liabilities 396,105 18,611 414,716Bonds, notes, and leases payable:
Due within one year 1,002,241 1,002,241Due in more than one year 2,805,837 2,805,837
Total liabilities 28,770,993 312,025 29,083,018
Net position:Net investment in capital assets 13,493,817 109,181 13,602,998Restricted 133,250 133,250Unrestricted 17,649,554 226,194 17,875,748
Total net position 31,143,371 468,625 31,611,996
Total liabilities and net position $ 59,914,364 780,650 60,695,014
See accompanying notes to basic financial statements.
33
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34
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(1) Summary of Significant Accounting Policies
(a) Reporting Entity
The City of Omaha, Nebraska (the City) was incorporated on February 2, 1857. The City operatesunder a Home Rule Charter and has a mayor-council form of government with an elected full-timechief executive, the Mayor, and an elected legislative body, the council, composed of sevenmembers. The seven council members each represent one of the City’s seven districts. The Mayorand members of the council are elected through popular vote to four-year terms. The City is apolitical subdivision of the state of Nebraska and is exempt from state and federal income taxes.
The governmental reporting entity consists of the City (the primary government) and its componentunits. Component units are legally separate organizations for which the City is financiallyaccountable or other organizations whose nature and significant relationship with the City are suchthat exclusion would cause the City’s financial statements to be misleading or incomplete. Financialaccountability is defined as the appointment of a voting majority of the component unit’s board and(i) either the City’s ability to impose its will on the organization or (ii) there is potential for theorganization to provide financial benefit to or impose a financial burden on the City.
The basic financial statements include both blended component units and the City’s discretelypresented component units. The blended component units, although legally separate entities, are, insubstance, part of the City’s operations, and data from these units are basic with data of the primarygovernment. The City’s basic financial statements blend the activity of the City of Omaha ParkingFacilities Corporation, the City of Omaha Impound Facilities Corporation, the City of OmahaStadium Facilities Corporation, City of Omaha Northwest Library Facilities Corporation, the City ofOmaha Facilities Corporation, and City of Omaha Convention Hotel Coiporation. The City isfinancially accountable for these organizations and they provide services entirely to the City ofOmaha.
The City reports its respective ownership percentage of the assets, liabilities, net position, andoperating activity of the Omaha-Douglas Public Building Commission (the Commission). Separatefinancial statements are available at 1819 Famam Street, Omaha, Nebraska 68183.
The City has engaged in related-party transactions as defined under Governmental AccountingStandards Board (GASB) Statement No. 56, Codification of Accounting and Financial ReportingGuidance Contained in the AICPA Statements on Auditing Standards, with the Omaha HousingAuthority, Omaha Airport Authority, and Metro Transit Authority where the Mayor or City Councilappoints board members to these organizations. The City’s accountability for these organizationsdoes not extend beyond making the appointments.
The discretely presented component units, on the other hand, are reported in separate columns in thegovernmentwide financial statements to emphasize that they are legally separate from the primarygovernment. The City’s basic financial statements discretely present the financial position andactivities of the Metropolitan Entertainment and Convention Authority (MECA) and HeartlandWorkforce Solutions (HWS).
35 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Metropolitan Entertainment and Convention Authority
Metropolitan Entertainment and Convention Authority (MECA) is a separate nonprofitcorporation that is responsible for the operation of the Omaha Convention Center/Arena, CivicAuditorium, and Downtown Stadium. Title to the facilities and all related infrastructure assetsare vested with the City. Construction activities were principally funded by private donations andgeneral obligation bonds of the City. Board members of MECA are appointed by the City. Thefinancial statements for MECA included herein are for the year ended June 30, 2012. MECA’sseparate financial statements are available at 1819 Famam Street, Omaha, Nebraska 68183.
Heartland Workforce Solutions
Heartland Workforce Solutions (HWS) is a separate 501(c)(3) nonprofit corporation that wasfonned in October 2010. HWS administers the Workforce Investment Act to expandemployment opportunities for youth, adults, and dislocated workers in Douglas, Sarpy, andWashington Counties in Nebraska. The organization receives the majority of its funding from theCity of Omaha as pass-through federal funds. The Mayor of the City of Omaha is the chiefelected official of the Tn-County workforce area. The Mayor appoints all board members andapproves HWS’s budget. The financial statements for HWS included herein include the periodfor fiscal year ended June 30, 2012. Separate financial statements for HWS are available at 1819Farnarn Street, Omaha, NE 68183.
Related Organizations
The City’s officials are responsible for appointing members of the boards of other organizations, butthe City’s accountability for these organizations does not extend beyond making the appointments.The Mayor or City Council appoints board members of the Omaha Housing Authority, the OmahaAirport Authority, and the Metro Area Transit Authority. The City is not financially accountable forthese organizations.
The Douglas Omaha Technology Commission (DOT.Comm) is a governmental entity formed by aninterlocal agreement between the City and Douglas County (the County). The purpose of this entityis to increase the cooperative efforts of the County and the City in connection with electronicinformation, voice, and data communication services for governmental operations, and publicservices. The Mayor appoints two members of the DOT.Comm Oversight Committee, which has atotal of seven members. The City Finance Director is a permanent member of the OversightCommittee. DOT.Comm has control over its operations and fiscal matters and holds title to its assets.DOT.Comm’s revenues are primarily derived from maintenance fees from the City and County.Separate financial statements can be obtained from its office at 408 South 18th Street, Omaha,Nebraska 68102.
(b) Basis ofPresentation
Governmentwide Financial Statements
The statement of net position and statement of activities display information about the primarygovernment and its component units. These statements include the financial activities of the overallgovernment, except for fiduciary activities. Eliminations have been made to minimize interfund
36 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
activities. These statements distinguish between the governmental and business-type activities of theCity and between the City and its discretely presented component units. Governmental activities,which normally are supported by taxes and intergovernmental revenues, are reported separately frombusiness-type activities, which rely to a significant extent on fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues forthe business-type activities of the City and for each function of the City’s governmental activities.Direct expenses are those that are specifically associated with a program or function and, therefore,are clearly identifiable to a particular function. Program revenues include (1) charges paid by therecipients of goods or services offered by the programs and (2) grants and contributions that arerestricted to meeting the operation or capital requirements of a particular program. Revenues that arenot classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds.Separate statements for each fund category — governmental, proprietary, and fiduciary — arepresented. The emphasis of fund financial statements is on major governmental and enterprise funds,each displayed in a separate column. All remaining governmental and enterprise funds are separatelyaggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactionsassociated with the principal activity of the fund. Exchange transactions are those in which eachparty receives and gives up essentially equal values. Nonoperating revenues, such as investmentearnings, result from nonexchange transactions, or ancillary activities.
The City reports the following major governmental funds:
o The general find is used to account for all revenues and expenditures necessary to carry outbasic governmental activities of the City that are not accounted for through other funds.
• The debt service fund is used to account for the resources for, and the payment of, generallong-term debt principal, interest, and related costs.
The City reports the following major proprietary funds:
o The convention center hotel fund is used to account for costs associated with the constructionand operation of the Convention Center Hotel.
e The parking facilities fund accounts for activity from parking revenue and related expendituresfor operation, maintenance, and construction of parking garages.
• The sewer revenue fund accounts for activity from sewer service charges, construction grants,and related expenditures for operation, maintenance, and capital improvements of the sanitarysewerage system and wastewater treatment plants.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
The City reports the following additional fund types:
o The pension trust funds accumulate contributions from the City and its employees andearnings from the funds’ investments. Disbursements are made from the funds for pensionpayments to City retirees.
o The agency funds account for assets held by the City as an agent for various localgovernments.
o The permanent funds are used to report resources that are legally restricted to the extent thatearnings, and not principal, may be used for purposes that support the City’s programs for thebenefit of the City or its citizenry.
The special revenue funds account for the proceeds from specific revenue sources that arerestricted to expenditures for specified purposes.
• The capital projects funds account for all resources received and used for the acquisition ordevelopment of major capital improvements (other than those financed by proprietary fundsand trust funds).
o The enterprisefinds account for operations that are financed and operated in a manner similarto private business enterprises: (a) where the intent of the governing body is that the costs ofproviding goods or services to the general public on a continuing basis are financed orrecovered primarily through user charges or (b) where the governing body has decided thatperiodic determination of revenues earned, expenses incurred, andlor net income is appropriatefor capital maintenance, public policy, management control, accountability, or other purposes.
(c) Basis ofAccounting
The governmentwide, proprietary, and fiduciary fund financial statements are reported using theeconomic resources measurement focus and the accrual basis of accounting. Revenues are recordedwhen earned and expenses are recorded at the time liabilities are incurred, regardless of when therelated cash flows take place. Nonexchange transactions, in which the City gives (or receives) valuewithout directly receiving (or giving) equal value in exchange, include property and sales taxes,grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognizedin the fiscal year for which the taxes are levied. Revenues from grants, entitlements, and donationsare recognized in the fiscal year in which all eligible requirements have been met.
Governmental funds are reported using the current financial resources measurement focus and themodified accrual basis of accounting. Under this method, revenues are recognized when measurableand available. Property and sales taxes, interest, certain state and federal grants, and charges forservices are accrued when their receipt occurs within 60 days after the end of the accounting periodso as to be both measurable and available. Expenditures are generally recorded when a liability isincurred, except for debt service expenditures and other long-term liabilities, which are recordedonly when due. General capital assets acquisitions are reported as expenditures in governmentalfunds. Proceeds and issuances of long-term debt are reported as other financing sources and uses.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
in connection with a proprietary fund’s principal ongoing operations. The principal operatingrevenues of the enterprise funds are charges to customers for goods and services. Operating expensesinclude the cost of sales and service, administrative expenses, and depreciation on capital assets. Allrevenues and expenses not meeting this definition are reported as nonoperating revenues andexpenses.
(d) Pooled Cash and Investments
The City maintains a pooled cash and investment account for all funds. These funds are placed in thecustody of the City Treasurer. Each fund reports its undistributed interest in the principal balance ofthe pooi. Interest earned on the City’s pooled cash and investments is credited to the general fund ofthe City, except for the Don Hayes Memorial Fund, Ralph Anderson Memorial Fund, Cash ReserveFund, Western Heritage/Byron Reed Fund, Asarco Remediation Fund, Sewer Revenue Fund, andSewer Construction Fund, which are credited directly to the respective funds. Interest is imputed andtransferred to the Keno funds, Police Seized Assets funds, Law Enforcement Block Grant funds, andWestern Heritage fund.
(e) Cash and Cash Equivalents
For purposes of the accompanying statement of cash flows, the City’s enterprise funds consider allhighly liquid debt instruments with an original maturity of three months or less when purchased to becash equivalents.
Q9 Investments
Investments are stated at fair value. Securities traded on a national or international exchange arevalued at the last reported sales prices at current exchange rates and where marketable securities arenot listed on an exchange, quotations are obtained from brokerage firms or national pricing services.Income from investments not included in pooled cash and investments that are held by individualfunds is recorded in the respective funds as it is received. Accrued interest is recorded at year-end.
(g) Inventories
Inventories of materials and supplies are stated at the lower of cost or market using the first-in,first-out method. The costs of govemmental fund inventories are recorded as assets when purchasedand expended as used.
(h) Revenue
• Property tax: Nebraska Legislative Bill (LB) 1114 imposes a tax ceiling for general revenuepurposes. The tax levy certified in any year shall not exceed $0.45 per $100 of actual valuation.The 2012 general tax levy ($0.28447 per $100 of assessed valuation) was below the legal limitby $0.16553, or $45,493,374.
The Home Rule Charter of the City imposes a tax ceiling for general revenue purposes. The taxlevy certified in any year shall not exceed $0.6l25 per $100 of actual valuation plus whatevertax levy is necessary to provide for principal and interest payments on the indebtedness of theCity for administrative expenses incurred in issuing and maintaining bonds and for satisfactionof judgments and litigation expenses in connection therewith. The 2012 general tax levy
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
($0.28447 per $100 of assessed valuation) was below the legal limit by $032803, or$90,154,000. The assessed value upon which the 2012 levy was based was $27,483,461,755.
The tax levies for all political subdivisions in Douglas County are certified by the county boardon or before October 15. Real estate taxes are due and become an enforceable lien on propertyon December 31. The first half of real estate taxes becomes delinquent on April 1 and thesecond half becomes delinquent on August 1 following the levy date. Personal property taxesare due on December 31 and become delinquent on April 1 and August 1 following the levydate. Delinquent taxes bear 14% interest.
• Motor vehicle tax: Motor vehicle tax is imposed upon all motor vehicles registered for operationupon the highways of the State of Nebraska. The tax is imposed at the rates authorized by theState and in the manner and for the puose specified. The Motor Vehicle Tax is assessed on avehicle at the time of initial registration and annually thereafter until the vehicle reaches 14years of age or more. It is based upon the Manufacturer’s Suggested Retail Price of the vehicle.
o City sales and use tax: A tax imposed upon the sale transactions within the corporate limits ofthe City on which the State is authorized to impose a tax according to the provisions of theNebraska Revenue Act of 1967. Sales tax collected by the State is remitted to the City twomonths after the month of sale. The tax is 1.5% that is added to the 5.5% State Sales Tax set bythe Nebraska Legislature. (The State Department of Revenue retains a 3% collection charge onall of the City’s sales tax receipts.) This revenue pays the City’s day-to-day operations.
• Business tax: Includes the cable television franchise fee, hotel/motel occupancy tax, kenoadministrative fee, occupation tax—Omaha Public Power District, occupation tax—Metropolitan Utilities District, stadium concessions, vehicle rental occupation tax, and vendingmachines concessions. These fees/taxes were implemented to raise money for the City and tofund special projects.
• License and permits: Includes various licensing fees, permit fees, and other fees related toprofessional/business activities (beer and liquor permits, firearm permits, pawnbroker’s permits,theater permits). A majority of these fees were implemented to raise money for the City;however, some items were implemented to regulate businesses and professionals that require alicense or permit to practice.
o Charges for services: Includes various fees and surcharges related to professional and businessactivities (asbestos removal, parking meters, swimming fees, tree removal). A majority of thesefees were implemented to raise money for the City in order to recover costs of maintenance,upkeep of public property, administration costs, and costs related to the service provided by theCity.
(i) Capital Assets
Within the governmentwide and proprietary fund financial statements, capital assets, includinginfrastructure, are recorded at historical cost or at estimated historical cost if actual historical cost isnot available. Contributed fixed assets are valued at their estimated fair market value on the date ofdonation. Capital assets include public domain infrastructure, including roads and bridges. The City
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
defines capital assets as assets with individual costs of more than $10,000 and estimated useful livesin excess of one year. Capital assets used in operations are depreciated or amortized using thestraight-line method over the lesser of the capital lease period or their estimated useful lives in thegovemmentwide and proprietary fund financial statements. Assets are depreciated using thehalf-year convention in the first and last years of the asset’s useful life.
The estimated useful lives are as follows:
Infrastructure 15 — 50 yearsBuildings and systems 15 — 50 yearsImprovements 5 — 30 yearsMachinery and equipment 5 —20 yearsVehicles 5 — 15 yearsFurniture and Fixtures 5 — 7 years
Net interest costs on funds borrowed to finance the construction are capitalized and depreciated overthe life of the related asset.
(1) Compensated Absences
Employees earn annual vacation and sick leave at various specific rates during their period ofemployment. In the event of termination, an employee is reimbursed for accumulated vacation time.This balance is the total of a yearly carryover, up to a maximum of 280 hours for civilian bargainingand civilian management employees, plus the current year’s leave balance. Civilian management andbargaining employees are reimbursed for a percentage of accumulated sick leave up to a maximumof 2,000 hours (612.5 maximum paid hours). Civilian and nonexempt management employees havethe option of accruing compensatory leave time at a rate of one and one half times the actual hoursworked in lieu of the payment of overtime. Employees may accrue a maximum of 120 hours ofcompensatory time. The compensatory time must be taken within three months after the end of thecalendar year in which it is earned and any remaining amounts are paid out in cash. However, theemployee retains the right to cash out the compensatory leave balance at any time.
In the event of termination, police employees are reimbursed for accumulated vacation time up to amaximum of 320 hours, plus the current year leave balance. Upon retirement, death, or resignationafter 20 years, police employees receive I for 1 for the first 1,200 hours of accumulated sick leaveand 1 for 4 hours thereafter up to a maximum of 3,200 hours (1,700 hours). Police employees mayaccrue a maximum of 360 hours of compensatory time. In the event of termination, Fire Department24-hour shift employees are reimbursed for accumulated vacation time up to a maximum of 432hours, plus current year accumulation. Upon retirement or resignation, Fire Bargaining 24-hour shiftemployees are reimbursed for accumulated sick leave at 65% of actual hours. In the event oftermination, Fire Management employees are reimbursed for accumulated vacation time up to amaximum of 280 hours, plus current year accumulation. Upon retirement, Fire Managementemployees are reimbursed for accumulated sick leave 1 for 1 for the first 1,200 hours and 1 for 4 forall hours greater than 1,201 to 3,200 for a maximum 1,700. In the event of termination, FireDepartment 40-hour shift employees are reimbursed for accumulated vacation time up to a maximumof 291.48 hours, plus current year accumulation. Upon retirement or resignation, 40-hour shift
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
employees are converted to 24-hour shift employees reimbursed for accumulated sick leave asabove.
For the governmentwide, proprietary, and fiduciary fund financial statements, vacation leave andother compensated absences with similar characteristics are accrued as the benefits are earned if theleave is attributable to past service and it is probable that the City will compensate the employees forsuch benefits. Such accruals are based on current salary rates and include salary-related payments,such as the employer’s matching Social Security and Medicare costs, associated with payments madefor compensated absences on termination. In the governmental funds, a liability for these amounts isreported only if they are due as a payable.
(k) Risk Management
The City is exposed to various risk of loss related to torts, theft of, damage to, and destruction ofassets; errors and omissions; injuries to employees; and natural disasters. The City is self-insuredwith respect to its obligation to provide workers’ compensation, general liability, property damage,unemployment benefits, and health and dental coverage.
The City purchases commercial insurance for property damage of City buildings and contents. TheCity purchases commercial insurance for aviation liability for the police aviation unit.
(1) Long- Term Obligations
In the governmentwide financial statements and proprietary fund types in the fund financialstatements, long-term debt and other long-term obligations are reported as liabilities in the applicablegovernmental activities, business-type activities, or proprietary fund type statement of net position.Bond premiums and discounts, as well as issuance costs, are advanced and amortized over the life ofthe bonds using the straight-line method. Bonds payable are reported net of the applicable bondpremium or discount. Bond issuance costs are reported as advanced charges and other assets andamortized over the term of the related debt on a straight-line basis.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,as well as bond issuance costs, during the current period. The face amount of debt issued is reportedas other financing sources. Premiums received on debt issuances are reported as other financingsources, whereas discounts on debt issuances are reported as financing uses. Issuance costs, whetheror not withheld from the actual debt proceeds received, are reported as current expenditures.
(in) Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers.Loans, which are reported as receivables and payables, are subject to elimination upon consolidationand are referred to as either “due to/from other funds” or “advances to/from other funds.”
Services provided, deemed to be at market or near market rates, are treated as revenues andexpenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriatebenefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions aretreated as transfers. Transfers between governmental or proprietary funds are netted as part of thereconciliation to the govemmentwide presentation.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(n) Restricted Assets
Restricted assets include deposits with trustees of various enterprise funds and capital projects.
(o) Recent Accounting Pronouncements
Adoption of New Accounting Pronouncements
In November 2010, GASB issued Statement No. 60, Accounting and Financial Reportingfor ServiceConcession Arrangements. The objective of this statement is to improve financial reporting byaddressing issues related to service concession arrangements (SCA5), which are a type ofpublic-private or public-public partnership. This guidance was effective for the City for the yearended December 31, 2012. The City does not have SCAs that fall under this guidance.
In December 2010, GASB issued Statement No. 62, Codification of Accounting and FinancialReporting Guidance Contained in Pre-November 30, 1989 Financial Accounting Standards Board(FASB) and American Institute of Certified Public Accountants (AICP4) Pronouncements. Theobjective of this statement is to incorporate into the GASB’s authoritative literature certainaccounting and financial reporting guidance that is included in the following pronouncements issuedon or before November 30, 1989, which does not conflict with or contradict GASB pronouncements:FASB Statements and Interpretations; Accounting Principles Board Opinions; or AccountingResearch Bulletins of the AICPA Committee on Accounting Procedure (collectively referred to asthe FASB and AICPA pronouncements). The guidance was effective and was adopted by the Cityfor the year ended December 31, 2012.
In June 2011, GASB issued Statement No. 63, Financial Reporting of Deferred Ou(fiows ofResources, Deferred Inflows of Resources, and Net Position. This statement provides financialreporting guidance for presentation of certain deferred outflows of resources and deferred inflows ofresources and was effective and was adopted by the City for the year ended December 31, 2012.
In June 2011, GASB issued Statement No. 64, Derivative Instruments: Application of HedgeAccounting Termination Provisions, an amendment of GASB Statement No. 53. The objective of thisstatement is to clarify whether an effective hedging relationship continues after the replacement of aswap counterparty or a swap counterparty’s credit support provider. This statement sets forth criteriathat establish when the effective hedging relationship continues and hedge accounting shouldcontinue to be applied. The requirements of this statement were effective for the City for the yearended December 31, 2012.
New Accounting Pronouncements Not Adopted
In November 2010, GASB issued Statement No. 61, The Financial Reporting Entity: Omnibus, anamendment of GASB Statements No. 14 and No. 34. The objective of this statement is to improvefinancial reporting for a governmental financial reporting entity. The requirements ofGASB Statement No. 14, The Financial Reporting Entity, and the related financial reportingrequirements of GASB Statement No. 34, Basic Financial Statements — and Management’sDiscussion and Analysis —for State and Local Governments, were amended to better meet user needsand to address reporting entity issues that have arisen since the issuance of those statements. Theguidance is effective for the City for the year ending December 31, 2013.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements3;.
December 31, 2012
In March 2012, GASB issued Statement No. 65, items Previously Reported as Assets andLiabilities,which reclassifies certain items that were previously reported as assets and liabilities as deferredoutflows of resources, deferred inflows of resources, or current period outflows and inflows. Therequirements of this statement are effective for the City for the year ending December 31, 2013.
In March 2012, GASB issued Statement No. 66, Technical Corrections. The objective of thisstatement is to improve accounting and financial reporting for a governmental financial reportingentity by resolving conflicting guidance that resulted from the issuance of previous pronouncements.The provisions of this statement are effective for the City for the year ending December 31, 2013.
In June 2012, GASB issued Statement No. 67, Financial Reportingfor Pension Plans. The objectiveof this statement is to improve financial reporting by state and local governmental pension plans.This Statement results from a comprehensive review of the effectiveness of existing standards ofaccounting and financial reporting for pensions with regard to providing decision-useful information,supporting assessments of accountability and interperiod equity, and creating additionaltransparency. The provisions of this statement are effective for the City for the year endingDecember 31, 2014.
In June 2012, GASB issued Statement No. 68, Accounting and Financial Reportingfor Pension. Theprimary objective of this statement is to improve accounting and financial reporting by state andlocal governments for pensions. The provisions of this statement are effective for the City for theyear ending December 31, 2015.
In January 2013, GASB issued Statement No. 69, Government Combinations and Disposals ofGovernment Operations. This statement establishes accounting and financial reporting standardsrelated to government combinations and disposals of government operations. The provisions of thisstatement are effective for the City for the year ending December 31, 2014.
In April 2013, GASB issued Statement No. 70, Accounting and Financial Reporting forNonexchange Financial Guarantees. The objective of this statement is to improve accounting andfinancial reporting by state and local governments that extend and receive nonexchange financialguarantees. The provisions of this statement are effective for the City for the year endingDecember 31, 2014.
The City has not completed its assessment of the impact of the adoption of these statements.
(p) Use ofEstimates
The preparation of the financial statements in conformity with U.S. Generally Accepted AccountingPrinciples (GAAP) requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements, and the reported amounts of revenues and expenditures/expenses during thereporting period. Actual results could differ from those estimates.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(2) Interfund Receivables, Payables, and Transfers
Individual interfund receivables and payables at December 31, 2012 are as follows:
Receivable fund Amount Payable fund
Agency Fund $ 1,221,300 Civilian Retirement Fund - Pension TrustFund
Sewer Revenue Fund - Enterprise Fund 20,000,000 General FundNonmajor Enterprise Funds 27,000 Convention Center Hotel Fund -
Enterprise FundDebt Service Fund 10,371,000 General Fund
All remaining balances result from the time lag between the dates that (1) interfund goods and services areprovided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and(3) payments between funds are made. All amounts are expected to be paid within one year.
Transfers are related to funding for capital projects, lease payments, debt service, or reallocations ofspecial revenues. The following schedule briefly summarizes the City’s transfer activity:
Transfer inGeneral Nonmajor Sewer Parking
Transfers out fund governmental revenue facilities Total
Major governmental funds:General ifind $ — 966,884 2,446,319 3,413,203
Major enterpdse funds:Sewer revenue 50,000 146,712 — 196,712
Total $ 150,000 2,176,735 913,870 2,446,319 5,686,922
(3) Deposits and Investments
The City has generally pooled the cash resources of the various funds, except the pension trust fund, forinvestment purposes. Interest earned on pooled funds is credited to the City’s general fund in accordancewith Nebraska State Statute Section 77-23 15, R.R.S. 1943.
(a) Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City will not be able to recoverits deposits. As of December 31, 2012, all of the City’s deposits were collateralized with securitiesheld by the City’s agent in the City’s name.
(b) City Investments
Investments are stated at fair value. City funds are invested in conformity with the public fundsSecurity Act, Chapter 77, Article 23, specifically 77-2387, of the Nebraska Revised Statutes.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Allowable investments include U.S. government bonds, U.S. Treasury bills and notes, U.S. agencybonds and notes, certain state and political subdivision bonds, repurchase agreements, warrants ofthe State of Nebraska and Nebraska political subdivisions, and certain instruments of the FHLM,federal farm credit system, FHLB, FNMA, and the Small Business Administration. The governmentmoney market mutual fund consists of only those securities that are allowed by N.R.S. 77-2387.
Custodial Credit Risk — Custodial credit risk is the risk that, in the event of the failure of thecounterparty, the City would not be able to recover the value of its investments or collateralsecurities that are in the possession of an outside party. The City’s policy requires that all funds ondeposit with any financial institution be secured with securities equal or greater than the deposit lessany amount insured by the FDIC. The City’s investment policy also requires that all investmentsecurities be held in the City’s name in the City’s safekeeping account.
Interest Rate Risk — Interest rate risk is the risk that the fair value of the City’s investments willdecrease as a result of an increase in interest rates. The City’s investment policy related to maturity isas follows: U.S. Treasury securities cannot exceed five years; zero-coupon or stripped couponU.S. Treasury notes or bonds cannot exceed two years; certificates of deposit issued by commercialbanks cannot exceed 30 months; and all other investments not mentioned above cannot exceed afive-year maturity from the date of purchase.
The City had the following maturities for pooled investments:
Investment termLess than
Investment type Fair value 1 year 1 — 5 years
U.S. agencies $ 120,792,279 17,894,398 102,897,881U.S. Treasuries 84,157,982 67,289,348 16,868,634
8 204,950,261
The City had the following maturities for investments held by trustees:
Investment termLess than
Investment type Fair value 1 year 1 —5 years
U.S. agencies 8 4,744,808 2,756,927 1,987,881U.S. Treasuries 132,500 — 132,500
$ 4,877,308
Credit Risk — Credit risk is the risk that the City will not recover its investments due to the inabilityof the counterparty to fulfill their obligation. State statute limits investment options to certainspecific investment vehicles. There is no statutory requirement for investments to meet a certainquality rating.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December3l,2012
The pooled investment’s quality rating is as follows:
QualityInvestment type Fair value rating AAA
U.S. agencies $ 120,792,279 AAAU.S. Treasuries 84,157,982 AAA
$ 204,950,261
The deposits with trustees’ quality rating are as follows:
QualityInvestment type Fair value rating AAA
U.S. agencies $ 4,744,808 AAAU.S. Treasuries 132,500 AAA
$ 4,877,308
Concentration of Credit Risk — Concentration of credit risk is the risk of loss attributed to themagnitude of the City’s investment in a single issuer. State statute does not restrict the concentrationof investment in any issuer. The City’s policy states that no more than 25% of the total portfolio willbe invested in the issuance of any single institution other than securities of the U.S. government andits agencies.
Concentrations of investment by issuer for pooled investments are displayed in the following table:
Investment type Fair value Percentage
U.S. agencies S 120,792,279 60%U.S. Treasuries 84,157,982 40
$ 204,950,261
Concentrations of investment by issuer for deposits held by trustees are displayed in the followingtable:
Investment type Fair value Percentage
U.S. agencies $ 4,744,808 98%U.S. Treasuries 132,500 2
4,877,308
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Foreign Currency Risk — Foreign currency risk is the risk that changes in exchange rates willadversely impact the fair value of an investment. The City does not have a policy related to foreigncurrency risk.
Summary — The following is a complete listing of deposits and investments of the City:
Cash and cash equivalents 28,222,565Investments 4,877,308
Imprest funds 54,077
$ 298,871,232
The deposits and investments of the City, excluding the pension trust funds, at December 31, 2012,are reflected in the financial statements as follows:
FiduciaryGovernmentwide funds
statement of statement ofInvestment type net position net position Total
Cash and pooled investments $ 45,379,939 8,318,297 53,698,236Investments 189,657,192 1,196,423 190,853,615Restricted deposits with trustee 33,099,873 33,099,873Restricted investments 21,219,508
________________
21,219,508
$ 289,356,512 9,514,720 298,871,232
(c) Pension Trust Funds
The pension trust funds consist of two funds: the Civilian Plan and the Uniformed Plan. Thesepension programs operate in compliance with Omaha Municipal Code Chapter 22 and NebraskaState Statute 30-3209. City pension funds are invested according to a plan developed and reviewedquarterly by each plan’s Investment Committee. The plans define the purposes of the assets, identifythe parties responsible for managing the investment process, establish both broad and specificguidelines for the investment of the fund’s assets, and establish criteria to monitor and evaluate theperformance of the investment managers. The plan authorizes investments in common and preferredstocks, corporate bonds, cash equivalent securities, certificates of deposits of insured institutions,money market funds, bank short-term investment funds, GICs, BICs, and government bonds. Theycan be in mutual funds or privately managed accounts.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Interest Rate Risk — The Pension Board of each plan with the recommendation from the respectiveInvestment Committee approves fund manager agreements. These management agreements outlinespecific investment policies each manager must adhere to. The Retirement Committees do restrictthe general asset allocation to fixed income. The uniformed plan fund’s target range for fixed incomeassets is between 13% and 31% of the portfolio value and the civilian plan fund’s range is between12% and 28%. Updated Investment Guidelines were adopted by each Pension Board inFebruary 2011. Fixed income investments are held in five accounts managed by four managers:$150.7 million in managed accounts and $10.7 million in one bond mutual fund. Maturities of thesecurities in these commingled funds are as follows:
Credit Risk — Credit risk involves the potential of loss of fair value due to the quality of the fixedincome investments. The Investment Committees of each plan monitor and select fixed fundmanagers based on an investment policy that diversifies the plan’s risks. Each manager employs avarying type of investment style. Fixed income investments are held in five accounts and aremanaged by four managers: $150.7 million in managed accounts and $10.7 million in one bondmutual fund. The quality ratings of the securities in these commingled funds are as follows:
Concentration of Credit Risk — Fixed income securities guidelines are governed by each manager’sindividual management contract. This allows a wide variety of management styles, thus diversifyingeach portfolio. Combined target allocation for fixed income securities shall be 12% to 31% of theportfolio. Equity investments shall be 22% to 77% of the portfolio with large cap domestics (6.5% to27%), small cap domestics (6% to 20%), and international equities (9.5% to 30%). Domestic realestate securities shall be 9.5% to 28% of the portfolio. They may be held individually or commingledin mutual funds and investment poois. There are no individual investments greater than 5% with asingle issuer.
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CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
PercentageInvestment type Fair value allocated
Government securities $ 37,312,465 5.3%Municipal issues 3,879,158 0.6Corporate bonds 117,525,803 16.5Domestic equities 227,181,818 32.0International equities 125,170,190 17.6Domestic real estate securities 133,107,674 18.7International real estate 1,503,535 0.2Commodities 33,493,365 4.7Private equity 12,059,269 1.7Cash and cash equivalents 19,508,721 2.7
Total $ 710,741,998 100.0%
Foreign Currency Risk — The City is exposed to foreign currency risk related to internationalequities. Foreign currency risk is the risk that changes in exchange rates will adversely impact thefair value of an investment. The City does not have policy related to foreign currency risk. Allinternational equities are denominated in U.S. dollars.
(4) Net Position/Fund Balances
The governmentwide and proprietary fund financial statements utilize a net position presentation. Netposition are categorized as net investment in capital assets, restricted, and unrestricted.
• Net Investment in Capital Assets — This category groups all capital assets, including infrastructure,into one component of net position. Accumulated depreciation and outstanding balances of debt that areattributable to the acquisition, construction, or improvement of these assets reduce the balance in thiscategory.
• Restricted Net Position — This category presents external restrictions imposed by creditors, grantors,contributors, or laws or regulations of other govemments and restrictions imposed by law throughconstitutional provisions or enabling legislation.
• Debt Service— This fund is restricted for resources for, and the payment of general long-term debtprincipal, interest, and related costs.
• Community Improvement — These funds are restricted to comply with City ordinances requiring athree million dollar bond reserve for the Convention Center Hotel Revenue Bonds and a reserve offund interest earnings from Keno revenues.
• Perpetual care — These funds are used to report resources that are legally restricted to the extent thatearnings, and not principal, may be used for purposes that support the City’s programs for the benefitof the City or its citizenry.
• Unrestricted Net position — This category represents net position of the City not restricted for anyproject or other purpose.
51 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Under GASB Statement No. 54, the governmental funds report up to five categories of fund balance.Ranging from the most restrictive to the least restrictive, they are: nonspendable, restricted, committed,assigned, and unassigned.
• Nonspendable Fund Balances — Nonspendable fund balances are amounts that cannot be spentbecause they are either not in spendable form or legally or contractually required to be maintainedintact.
o Restricted Fund Balances — Restricted fund balances represent amounts constrained by creditors,grantors, contributors or laws, and regulations of other governments, or limitations are imposed bylaw through constitutional provisions or enabling legislation.
o Committed Fund Balances — Committed funds can only be used for specific purposes pursuant toconstraints imposed by the highest level of decision making, which is the City Council. Only theCity Council, through an ordinance or resolution, can change any fund balance commitment.
o Assigned Fund Balances — Assigned fund balances are intended for specific purposes. Allassignments of contracts and purchase orders over $20,000 are approved by the City Council. Aresolution passed by the City Council would explicitly state the specific purpose for the use of funds.Management can assign funds through the purchasing process in conjunction with the FinanceDepartment.
• Unassigned Fund Balance — Unassigned fund balance is the residual classification for the generalfund. In nonmajor governmental funds, if expenditures incurred for specific purposes exceeded theamounts restricted, committed, or assigned to those purposes, it may be necessary to report anegative unassigned fund balance.
52 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Fund balances are classified as nonspendable, restricted, committed, assigned, or unassigned. The Citygenerally follows the same order in spending resources unless special circumstances apply. The followingprovides details of the aggregate amounts displayed on the face of the governmental funds balance sheet:
Nonmajor Totalgovernmental governmental
General Debt Service funds funds
Fund balances:Nonspendable:
Inventory $ 2,320,144 2,320,144Permanent principal 2,775,389 2,775,389
Total nonspendable 2,320,144 2,775,389 5,095,533
Restricted:General
— 6,493,068 6,493,068Public safety
— 1,063,844 1,063,844Transportation 13,655,232 13,655,232Other public services 2,339,669 2,339,669Community development — — 2,196,606 2,196,606Culture and parks 747,561 5,276,223 6,023,784Debt service
— 3,303,762 3,303,762Other public services 5,227,274 5,227,274Community development
— 422,867 422,867Culture and parks
— 3,493,074 3,493,074Debt service — —
Total committed 18,704,036 18,704,036
Assigned:General 1,153,124 5,655,987 6,809,111Public safety 5,587,995 — 5,587,995Transportation 114,107 114,107Community development 190,714 — 190,714Culture and parks 187,095 — 1,035,627 1,222,722Other public services — —
Total assigned 7,233,035 — 6,691,614 13,924,649
Unassigned 37,608,141 — (13,987,312) 23,620,829
Total unassigned 37,608,141 — (13,987,312) 23,620,829
Total all funds $ 47,908,881 18,689,053 49,008,059 115,605,993
53 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(5) Reconciliation of government-wide and fund financial statements
(a) Explanation of Certain Differences between the Governmental Funds Balance Sheet and theGovernment-Wide Statement of Net Position
The governmental funds balance sheet includes reconciliation between find balance — totalgovernmental funds and net position of governmental activities as reported in the government-widestatement of net position. One element of that reconciliation explains, “Long-term liabilities,including bonds payable and pension obligations, are not due and payable in the current period and,therefore, are not reported in the funds.” The details of the $1,227,109,321 difference are as follows:
Bonds payable $ 618,481,829Less deferred amount for loss on
(b) Explanation of Certain Differences between the Governmental Funds Statement of Revenues,Expenditures, and Changes in Fund Balances and the Government-Wide Statement ofActivities
The governmental funds statement of revenues, expenditures, and changes in fund balances includesreconciliation between net change in fund balances — total governmental funds and change in netposition of governmental activities as reported in the government-wide statement of activities. Oneelement of that reconciliation explains, “Governmental funds report capital outlays as expenditures.However, in the statement of activities, the cost of those assets, which exceeds the capitalizationthreshold, is allocated over their estimated useful lives and reported as depreciation expense.” Thedetails of this ($5,081,487) differences are as follows:
Capital outlay $ 32,819,516Depreciation expense (37,901,003)
Net difference $ (5,081,487)
54 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Another element of that reconciliation states, “The issuance of long-term debt (e.g., bonds, leases,etc.) provides current financial resources to governmental funds, where as the repayment of theprincipal of long-term debt consumes the current financial resources of governmental funds. Neithertransaction, however, has any effect on net position. Also, governmental funds report the effect ofissuance costs, premiums, discounts, and similar items when debt is first issued, whereas theseamounts are advanced and amortized in the statement of activities.” The details of this $1,651,233difference are as follows:
Debt issued or incurred:Issuance of long-term debt $ (112,957,928)Annexed debt (12,285,378)Deferred charge for issuance costs (2,440,965)
Another element of that reconciliation states, “Some expenses reported in the statement of activitiesdo not require the use of current financial resources and, therefore, are not reported as expendituresin governmental funds.” The details of this ($62,778,038) difference are as follows:
Grants payable $ 2,300,000Workers’ compensation and
health claims (4,953,358)Claims and judgments payable 1,445,000Net pension obligation (27,681,550)Postretirement benefits obligation (27,647,165)Accrued interest 221,498Compensated absences (6,462,463)
Net difference $ (62,778,038)
(6) Special Assessment Note Payable
The City did not obtain a note for 2012, as there were sufficient funds available to fund the currentrequirements in the special assessment fund for the purpose of meeting obligations to contractors for workin place that will ultimately be assessed to the benefited property owners.
55 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(7) Bonds Payable and Other Long-Term Obligations
The following is a summary of long-term liability transactions for the year ended December 31, 2012:
Balances at lssuances Retirements Balances at Amount dueJanuary 1, or other or other December 31, within one
2012 additions reductions 2012 year
Governmental activities:Bonds payable:
General obligation bonds S 516,090,000 59,210,000 65,560,000 509,740,000 38,835,000Annexed general obligation
General obligation bonds have been approved by the voters and issued by the City for variousmunicipal improvements. These bonds represent indebtedness supported by the full faith and creditof the City.
61 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(c) Notes Payable
Notes payable consist of a loan contract between the City and the U.S. Army Corps of Engineers andthree loan contracts between the City and the Nebraska Department of Environmental Quality(NDEQ) with interest rates ranging from 0% to 3%. Maturities of the notes payable are as follows:
At December 31, 2012, $305,156,947 of tax increment financing notes and bonds were outstanding.Tax increment financing allows cities to create special districts and to make public/privateimprovements within those districts that will generate public/private-sector development. For aperiod of 15 years, the tax base is frozen at the predevelopment level, and taxes generated from theincremental increases in assessed value are remitted as payment on the notes and bonds. The loanagreements between the City and developer expressly limit the City’s commitment for debtrepayment to the incremental tax collected during the 15-year period. At the end of the 15-yearperiod, the tax jurisdiction collects on the increased property values. The related tax incrementdistricts are not component units of the City; therefore, the City is not liable for the outstanding debt.The City’s responsibility for this liability is limited only to remittance of paid taxes.
(j9 Debt Margin/Covenants
According to the City Charter, the total amount of general obligation indebtedness (includingannexed area bonds) outstanding at any time, which shall include bonds issued, but shall not includebonds authorized until they are issued, shall not exceed 3.5% of the actual value of taxable real andpersonal property in the City. Debt margin as of December 31, 2012 is calculated as follows:
Debt limit $ 976,978,815
General obligation debt 516,794,764Debt service fund balance 18,689,053
498,105,711
Debt margin S 478,873,104
Revenue bonds and certain other long-term obligations are the obligation of specific enterprise fundsand are payable solely from the revenues of the respective funds. Provisions in the revenue bondordinances contain limitations and restrictions on annual debt service requirements, maintenance ofand flow of moneys through various restricted accounts, and minimum amounts to be maintained invarious accounts. It is management’s opinion the City is in compliance with all such significantprovisions.
(g) In Substance Deftasance
On October 25, 2012, the City issued $11,785,000 of special tax revenue development bonds toprovide resources to purchase investment securities that were placed in an irrevocable trust for thepurpose of generating resources to all future debt service payments of $11,685,000 of special taxrevenue bonds. As a result, the funded bonds are considered to be defeased and the liability has beenremoved from the govemmental activities column of the statement of net position. The reacquisitionprice exceeded the net carrying amount of the old debt by $770,644. This amount is being nettedagainst the new debt and amortized over the shorter life of the refunded debt or original debt. Thisrefunding was undertaken to reduce total debt service payments over the next 12 years by $1,248,180and resulted in an economic gain of$1,207,572.
63 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December3l,2012
On October 12, 2012, the City issued $32,040,000 of general obligation refunding bonds to provideresources to purchase investment securities that were placed in an irrevocable trust for the purpose ofgenerating resources for all future debt service payments of $31,725,000 of general obligation bonds.As a result, the refunded bonds are considered to be defeased and the liability has been removedfrom the governmental activities column of the statement of net position. The reacquisition priceexceeded the net carrying amount of the old debt by $3,082,814. This amount is being netted againstthe new debt and amortized over the shorter life of the refunded debt or original debt. This refundingwas undertaken to reduce total debt service payments over the next 16 years by $2,666,154 andresulted in an economic gain of $2,533,692.
In prior years, the City defeased certain general obligation and other bonds by placing the proceedsof new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.Accordingly, the trust account assets and the liability for the defeased bonds are not included in theCity’s financial statements. The amount of in substance defeased debt outstanding at December 31,2012 is shown as follows:
64 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
General Obligation Bonds
2000 Convention Center Series A $ 92,175,0002003 Various Purpose 7,560,0002004 Various Purpose & Refunding 2004B 7,430,0002005 Various Purpose & Refunding 2005A 21,400,000
128,565,000
General Obligation Bonds
S.I.D. #250 700,000S.LD. #288 119,567S.I.D. #322 1,315,000S.I.D. #388 850,000S.I.D. #353 A 925,000S.I.D. #353 A 460,000S.I.D. #330 H 1,210,000S.I.D. #300 R 300,000
5,879,567
Total general obligation andannexed area bonds 134,444,567
The City is leasing libraries and other facilities under noncancelable lease-purchase agreements expiring atvarious times through 2036, at which time title will be conveyed to the City. The net book value of leasedassets is approximately $182.9 million. The rental payments are designed to equal the debt servicerequirements of certain nonprofit organizations that financed the construction of the facilities. The City hasan option to purchase the facilities at any time by paying an amount equal to the total of all remainingunpaid lease obligations to the lessor at that time.
65 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
The following schedule reflects future minimum lease payments under the lease-purchase agreementstogether with the present value of the net minimum lease payments as of December 31, 2012:
Total minimum lease payments 205,182,406 55,137,067
Less amount representing interest 74,088,223 18,372,067
Total principal obligation under capital leaseswith rates of interest from 1.10% to 6.51% $ 131,094,183 36,765,000
The City leases space in the Omaha Douglas Civic Center and the adjoining Hall of Justice under a leasethat expires only upon payment of all outstanding bonds of the Commission. The annual rental paymentsare determined based upon actual space occupied by the City for operation and maintenance. Actual rentalpayments for 2012 were approximately $1,600,000.
66 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(9) Receivables
Receivables at December 31, 2012 of the City’s major funds and nonmajor funds in the aggregate,including the applicable allowances for uncollectible accounts, are as follows:
Total
Total Parking business
Dabs gos’erooceolal facilities Soaver l5pr
General senior Nonmajor activities fund fund Nonmajor activities Total
Receivables:
Properlylasas S 79,669.535 53.605.859 6.090.852 136,795.226 .— 30,795,226
Tolopisooc occopasios las 2,377,1)22 — — 2,377,022 — — 2,377,022
I ole) cole) 0000pal:oo vs 426.964 — 426.964 — — 426,964
Vol tIe rectal occopaloo las 652,264 — — 652,264 — — 652,264
Roslaerael Tos 3.025,709 — 3.025.709 — —. — — 3,025,789
S 92.676.167 55,699,751) 26,117,071 126,493,000 171,726 1.420.249 170,266 1.762,241 178,255.249
Governmental funds report advanced revenues in connection with receivables for revenues not consideredavailable to liquidate liabilities of the current period. At December 31, 2012, the various components ofadvanced revenue and unearned revenue are as follows:
Charges for services and other (sewer revenue fund) 270,460Charges for services and other (nonmajor enterprise funds)
_______________
46,637
$ 168,532,136 4,973,520
(10) Employees’ Retirement Plans
Substantially all City employees are covered by one of two single-employer contributory defined benefitretirement plans. The City of Omaha Employees’ Retirement System (the Civilian Plan) and the City ofOmaha Police and Firefighters Retirement System (the Uniformed Plan), as described as follows, areaccounted for by the City as pension trust funds.
67 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(a) Civilian Plan
Plan Description — The Civilian Plan is a single-employer contributory defined benefit pension plan.The Civilian Plan provides retirement benefits to plan members and beneficiaries. All eligible Cityemployees, except the following, are covered by the plan: police; firefighters; persons paid on acontractual or fee basis; seasonal, temporary, and part-time employees; and elected officials who donot make written application. Cost-of-living adjustments are provided to members and beneficiariesat the discretion of the City in accordance with plan provisions. A cost-of-living adjustment currentlyis provided for members who retired prior to January 28, 1998 after a five-year waiting period. ThePension Board of the City administers the Civilian Plan. The Pension Board is responsible forestablishing or amending plan provisions. The Civilian Plan does not issue separate financialstatements.
Funding Policy — Effective January 1, 2012, Civilian Plan members are required to contribute, bypayroll deduction, 10.08% of their annual covered salary and the City is required to contribute at arate of 11.78% of annual covered salary. Administrative costs for management of the investmentfunds are financed through investment earnings. Other administrative costs of the Civilian Plan arepaid by the City’s general fund. Contributions to the Civilian Plan totaled $6,201,923 for theemployees and $7,216,050 for the employer for the year ended December 31, 2012.
Participant Data
Membership of the Civilian Plan consists of the following at December 31, 2012:
Number of:Active members 1,152Service retirements 1,002Surviving spouses and children 272Disabled 84Deferred vested 75
Total participants 2,585
The Civilian Plan is not subject to either the minimum funding standards of the EmployeeRetirement Income Security Act of 1974 or the maximum funding standards of the EmployeeRetirement Income Security Act of 1974 or the maximum funding limitations. Funding standards areactuarially determined using the entry age normal cost method.
68 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
The information presented in the notes to financial statements and required supplementaryinformation was determined as part of the actuarial valuation at the date indicated. Additionalinformation as of the latest actuarial valuation follows:
Valuation date January 1, 2012Actuarial cost method Entry age normal methodAmortization method Level percent cost of payRemaining amortization period 20 yearsAsset valuation method Expected + 25%
75% of expected value, plus 25% of market valueActuarial assumptions:
Investment rate of return 8% per yearProjected salary increases Varying 4% to 10% per yearCost-of-living adjustments Lesser of 3% or $50 per monthAmortization period Closed
Annual Pension Cost and Net Pension Obligation — The City’s annual pension cost and net pensionobligation to the Civilian Plan for the fiscal year ended December 31, 2012 are as follows:
Annual required contribution $ 15,658,045Interest on net pension obligation 3,322,571Adjustment to annual required contribution (3,016,754)
Annual pension cost 15,963,862
Contributions made (7,216,050)
Increase in net pension obligation 8,747,812
Net pension obligation, beginning of year (41,532,143)
Net pension obligation, end of year $ (50,279,955)
The annual pension costs, the percentage of annual pension cost contributed, and the net pensionobligation for 2012, 2011, and 2010 are as follows:
Schedule of employer contributionsAnnualrequired Percentage Net
contribution of ARC pension(ARC) contributed obligation
Basis ofAccounting — The Civilian Plan’s financial statements are prepared using the accrual basis ofaccounting and are presented as a pension trust fund in the accompanying basic financial statementsof the City. Plan member and employer contributions are recognized in the period in which thecontributions are due. Benefits are provided based on a percentage of the member’s final averagecompensation and are recognized when due and payable.
Method Used to Value Investments — Civilian Plan assets are carried at fair value. Investments insecurities traded on a national securities exchange are valued at the latest quoted market prices.Unlisted investments are valued at net asset value.
Funding Status and Funding Progress — The funding status and funding progress is as follows(dollars in millions):
Actuarial UAAL as aActuarial accrued Unfunded percentagevalue of liability (AAL) AAL Funded Covered of covered
Actuarial assets entry age (UAAL) ratio payroll payrollvaluation date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
2012 $ 236.7 420.8 184.1 56.3% $ 62.8 293.2%
The schedules of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements,present multiyesr trend information about whether the actuarial values of plan assets are increasing or decreasing over time relativeto the AALs for benefits.
Summary financial information for the Civilian Plan is as follows:
Assets
Cash and cash equivalents $ 984Due from other funds 1,089Receivables:
Accounts payable and other current liabilities $ 1,640,865
Total liabilities 1,640,865Net Position
Net position:Held in trust for pension benefits 223,233,088
Total liabilities and net position $ 224,873,953
70 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Additions:Contributions:
Employer $ 7,216,050Employee 6,201,923
Total contributions 13,417,973
Investment income (loss):Dividends and interest 6,075,554Net appreciation in fair value of investments 18,454,403Investment expenses (1,364,199)
Net investment income 23,165,758
Total additions 36,583,73 1
Deductions:Benefit payments 28,785,427
Change in net position 7,798,304
Net position held in trust for pension benefits, beginning of year 215,434,784
Net position held in trust for pension benefits, end of year $ 223,233,088
(b) Uniformed Plan
Plan Description — The Uniformed Plan is a single-employer contributory defined benefit pensionplan. The Uniformed Plan covers all eligible probationary and regular sworn personnel of the Policeand Fire Departments of the City. The Uniformed Plan provides retirement, disability, and deathbenefits to plan members and beneficiaries. Cost-of-living adjustments are provided to members andbeneficiaries at the discretion of the City in accordance with plan provisions. The City Council hasthe authority to negotiate, set, and amend contribution rates for the employer and employees. ThePension Board of the City administers the Uniformed Plan. The Pension Board is responsible forestablishing or amending plan provisions. The Uniformed Plan does not issue separate financialstatements.
The valuation date of January 1, 2012 does not include the renegotiated fire union contract. The fireunion signed a new contract with the City in December 2012, which includes a commitment by theCity and the fire union to increase their contributions to the uniform plan to address the growingunfunded liability of the Plan. Management has yet to quantify the impact of the new contract, butexpects the changes to impact the updated valuation to be prepared on January 1, 2013.
71 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Funding Policy — Uniformed Plan members are required to contribute, by payroll deduction, apercentage of their annual covered salary and the City is also required to contribute as follows:
In addition, the City will make contributions of $1,327,600 annually through 2028. Administrativecosts for management of the investment funds are financed through investment earnings. Otheradministrative costs of the Uniformed Plan are paid by the City’s general fund. Contributions to theUniformed Plan totaled $19,641,660 for the employees and $35,302,037 for the employer for theyear ended December 31, 2012.
Participant Data
Membership of the Uniformed Plan consists of the following at December 31, 2012:
Number of:Active members 1,411Service retirements 947Surviving spouses and children 282Disabled 237Deferred vested 11
Total participants 2,888
The Uniformed Plan is not subject to either the minimum funding standards of the EmployeeRetirement Income Security Act of 1974 or the maximum funding standards of the EmployeeRetirement Income Security Act of 1974 or the maximum funding limitations. Funding standards areactuarially determined using the entry age normal cost method.
72 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
The information presented in the notes to the basic financial statements and required supplementaryinformation was determined as part of the actuarial valuation at the date indicated. Additionalinformation as of the latest actuarial valuation follows:
Valuation date January 1, 2012Actuarial cost method Entry age normal methodAmortization method Level percent of payRemaining amortization period 21 yearsAsset valuation method Expected Value + 33%
One-third of market value, plustwo-thirds of expected asset value
Actuarial assumptions:Investment rate of return 8% per yearProjected annual salary increases varying 4% through 6.5%Final year wage adjustment 10.0%Cost-of-living adjustments Lesser of 3% or $50 per month ($65 for fire
retirements after June 30, 2007)Amortization period Closed
Annual Pension Cost and Net Pension Obligation — The City’s annual pension cost and net pensionobligation to the Uniformed Plan for the year ended December 31, 2012 are as follows:
Annual required contribution $ 54,310,693Interest on net pension obligation 11,185,815Adjustment to annual required contribution (9,833,151)
Annual pension cost 55,663,357
Contributions made (35,302,037)
Increase in net pension obligation 20,361,320
Net pension obligation, beginning of year (139,822,693)
Net pension obligation, end of year $ (160,184,013)
73 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December3l,2012
The annual pension costs, the percentage of annual pension cost contributed, and the net pensionobligation for 2012, 2011, and 2010 are as follows:
Schedule of employer contributionsAnnualrequired Percentage Net
contribution of ARC pensionARC contributed obligation
Basis of Accounting — The Uniformed Plan’s financial statements are prepared using the accrualbasis of accounting and are presented as a pension trust fund in the accompanying financialstatements of the City. Plan member and employer contributions are recognized in the period inwhich the contributions are due. Benefits are provided based on a percentage of the member’s finalaverage compensation and are recognized when due and payable.
Method Used to Value Investments — Uniformed Plan assets are carried at fair value. Investments insecurities traded on a national securities exchange are valued at the latest quoted market prices.Unlisted investments are valued at net asset value.
Funding Status and Progress — The funding status and funding progress is as follows:(dollars in millions).
Actuarial UAAL as aActuarial accrued Unfunded percentagevalue of liability (AAL) AAL Funded Covered of covered
Actuarial assets entry age (UAAL) ratio payroll payrollvaluation date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
2012 $ 467.4 1,077.6 610.2 43.4% $ 110 554.7%
The schedules of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements,present multiyear trend information about whether the actuarial values of plan assets are increasing or decreasing over time relativeto the AALs for benefits.
74 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Summary financial information for the Uniformed Plan is as follows:
Total capital assets,not beingdepreciated 169,563,806 23,762,953 8,985,848 184,340,911
Capital assets, being depreciated:Buildings 557,114,585 6,454,378 411,259 563,157,704Machinery and equipment 73,624,161 4,855,168 2,989,349 75,489,980Infrastructure 754,972,918 23,525,200 778,498,118
Total capital assets,being depreciated 1,385,711,664 34,834,746 3,400,608 1,417,145,802
Less accumulated depreciation for:Buildings 212,097,268 15,901,466 280,695 227,718,039Machinery and equipment 49,188,790 4,942,843 2,710,616 51,421,017Infrastructure 189,661,883 29,055,984 218,717,867
Total accumulateddepreciation 450,947,941 49,900,293 2,991,311 497,856,923
Total capital assets,being depreciated,net 934,763,723 (15,065,547) 409,297 919,288,879
Governmentalactivitiescapital assets, net $ 1,104,327,529 8,697,406 9,395,145 1,103,629,790
In 2012, the City annexed SID #244; 300; 330; 370; 414; 416; 440; 447; and 553. As a result, capital assetsrelated to government wide of $16,543,347, net of accumulated depreciation of$1 1,999,290 were acquiredand capital assets related to sewer of $3,256,842, net of accumulated depreciation of $2,806,057, and debtof $12,285,378 was assumed in a noncash transaction. Current year additions to accumulated depreciationwere increased by the amount of existing depreciation on the acquired assets.
76 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
Depreciation expense was charged to functions/programs as follows:
Governmental activities:General governmentPublic safetyCommunity developmentOther public servicesCulture and parksTransportation services
Total depreciation expense — governmental
Capital asset activity of each major enterprise fund is as follows:
ii$ 1,123,340
3,720,857853,696
1,060,74116,238,69814,903,671
$ 37,901,003
Convention Center Flotel Fund:Capital assets, not being
depreciated:Cultural assets
Beginningbalances
$ 718,020
Increases DecreasesEnding
balances
718,020
Capital assets, being depreciated:BuildingsMachinery and equipmentFurniture and fixtures
Total capital assets,being depreciated
Less accumulated depreciation for:BuildingsMachinery and equipmentFurniture and fixtures
Total capital assets,not being depreciated 54,357,496 91,641,729 36,072,839 109,926,386
Capital assets, being depreciated:Buildings and systems 715,624,945 40,096,839 — 755,721,784Machinery and equipment 9,575,077 743,362 229,383 10,089,056
Total capital assets,being depreciated 725,200,022 40,840,201 229,383 765,810,840
Less accumulated depreciation for:Infrastructure 268,637,701 20,215,148 288,852,849Buildings and systems 36,902,199 1,098,378 — 38,000,577Machinery and equipment 6,868,324 532,417 229,383 7,171,358
Total accumulateddepreciation 312,408,224 21,845,943 229,383 334,024,784
Total capital assets,being depreciated, net 412,791,798 18,994,258
_____________
431,786,056
Sewer Revenue Fundcapital assets, net $ 467,149,294 110,635,987 36,072,839 541,712,442
Nonmajor Enterprise Funds:Capital assets, not being
depreciated:Construction in progress $
Capital assets, being depreciated:Buildings and systems 9,228,130 — 9,228,130Machinery and equipment 2,813,437 63,585 24,540 2,852,482
Total capital assets,being depreciated 12,041,567 63,585 24,540 12,080,612
Less accumulated depreciation for:Building and systems 4,575,250 311,676 — 4,886,926Machinery and equipment 2,207,667 130,788 24,540 2,313,915
Total accumulateddepreciation 6,782,917 442,464 24,540 7,200,841
Nonmajor Enterprisecapital assets, net $ 5,258,650 (378,879)
______________
4,879,771
(12) Fund Deficits
Fund deficits exist in the following funds as of December 31, 2012:
Major Enterprise Funds:Convention Center Hotel-Enterprise Fund $ (37,589,496)Parking Facilities-Enterprise Fund (4,751,032)
Nonmajor Special Revenue Funds:Keno/Lottery Proceeds (338,192)Community Park Development (2,422,707)Grants (918,431)Household Chemical Disposal (77,060)
Nonmajor Capital Projects Funds:Downtown Stadium and Companion Project (10,130,922)Missouri River Pedestrian Bridge (100,000)
The Convention Center Hotel began operations in April 2004. The City projects that futureoperations of the hotel will eliminate this deficit. An addition of 150 rooms, a junior ballroom, andadditional meeting space were completed in 2012 and are expected to generate additional revenue toreduce the deficit. Several national-profile events have been secured for the adjoining Century-LinkCenter providing increased revenue stability. Annual appropriations from the City will subsidize anydebt service shortfall.
The Parking Facilities Fund was established as a tool to manage the City’s eight parking structuresand various surface lots throughout the City. Lease-purchase debt has been issued to finance theconstruction of the parking structures. The City recently completed a comprehensive parking study.Among the recommendations implemented to date are: the consolidation of all parking functionsunder one department — Public Works; and, the installation of new parking meters that accept bothcredit cards and coins. Under consideration are changes to parking fees, increased hours ofenforcement, and review of vendor and leasing contracts. The City has also hired a full-time parkingfacilities manager to oversee all parking operations. Annual appropriations from the City’s GeneralFund to subsidize the payment of this debt will eliminate this deficit.
(b) Voninajor Special Revenue Funds
The Community Park Development Fund’s deficit is a result of the acquisition of two large landpurchases. These sites are outside of the City and have been selected as future regional parks. A parkdevelopment fee has been established, which will be collected from neighboring SanitaryImprovement Districts to fund these acquisitions. Both Douglas and Sarpy Counties are contributingpartners to the Household Chemical Disposal Fund, along with the City; they have both agreed tomake one-time contributions to help eliminate this fund deficit. The other Nonmajor SpecialRevenue Fund deficits will be eliminated upon collection of advanced revenues from the sponsoringgrantor agency and reduction of expenses.
(c) Nonmajor Capital Funds
The Downtown Stadium fund deficit is the result of expenditures to complete the City’s newballpark. Pledged gifts will eliminate the deficit. The elimination of the fund deficit in the remainingNonmajor Capital Projects Fund will be accomplished by the receipt of advanced revenues.
(d) Nonmajor Enterprise Funds
The deficit in the Golf Operations, Air Quality Fund, Compost, and Printing Services and Graphicswill be eliminated by fee increases and reduction of expenses.
(13) Postretirement Healthcare Benefits
(a) Plan Description
The City sponsors a single-employer, defined benefit healthcare plan that provides certainpostemployment healthcare benefits to eligible retirees and their dependents up to age 65 when theywould be Medicare eligible in accordance with provisions established in Chapter 23 of the OmahaMunicipal Code. The benefits include medical and prescription coverage. The rates paid by retirees
81 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
Decernber3l,20l2
are substantially lower than they would be under individual health insurance policies. This differenceis an implicit rate subsidy and considered other post employment benefits (OPEB). The plan isadministered by the City. The plan does not issue separate financial statements.
(b) Funding Policy
The contribution requirements of plan members and the City are established through labornegotiations, with the Omaha Police Union Local No. 101, the Professional Firefighters Associationof Omaha Local No. 385, the Omaha City Employees Local No. 251, and other classified civilianand sworn employees. All agreements are approved and can be amended by the City Council.Contributions are made to the plan based on a pay-as-you-go basis and the City self-insures thisbenefit. For the year ended December 31, 2012, the City paid $15,642,584 for 916 retirees. Retireecontribution rates vary from 0% to 10% of an annual estimated premium depending on thebargaining group. Retiree contributions for 2012 were $439,174.
(c) Annual OPEB Cost and Net OPEB Obligation
The City’s annual other OPEB cost (expense) is calculated based on the annual required contributionof the employer (ARC), an amount actuarially determined in accordance with the parameters ofGASB Statement No. 45, Accounting and Financial Reporting by Employers for PostemploymentBenefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoingbasis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (orfunding excess) over a period not to exceed 30 years. The amortization method used is the levelpercentage of projected payroll and the periods used on closed. The remaining amortization period is25 years. The unprojected-unit-credit-actuarial-cost method is used. The following table shows thecomponents of the City’s annual OPEB costs for the year, the amount actually contributed to theplan, and the changes in the City’s net OPEB obligation:
Normal cost $ 26,692,833Amortization of unfunded actuarial accrued liability 19,059,447Interest on net OPEB obligation 3,483,212Adjustments to annual required obligation (4,780,980)
Annual OPEB 44,454,512
Contributions made by employer (15,642,583)
Increase in net OPEB obligation 28,811,929
Net OPEB obligation, beginning of year (116,107,053)
Net OPEB obligation, end of year $ (144.918,982)
The net OPEB cost is allocated to governmental activities, sewer enterprise fund, and other nonmajorenterprise funds based on 2012 compensation expense.
82 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
The annual OPEB costs, the percentage of annual OPEB cost contributed, and the net OPEBobligation for 2012, 2011, and 2010 are as follows:
The funded status of the plan as of January 1, 2012 is as follows:
Actuarial accrued liability (AAL) $ 449,381,032
Actuarial value of plan assetsUnfunded actuarial accrued liability (UAAL) $ 449,381,032
Funded ratio
Covered payroll $ 164,200,000
UAAL as a percentage of covered payroll 274%
(e) Actuarial Methods and Assumptions
Actuarial valuations on an ongoing plan involve estimates of the value of reported amounts andassumptions about the probability of occurrence of events far into the future. Examples includeassumptions about future employment, mortality, and the healthcare cost trend. Amounts determinedregarding the funded status of the plan and the annual required contributions of the employer aresubject to continual revision as actual results are compared with past expectations and new estimatesare made about the future. The schedule of funding progress, presented as required supplementaryinformation following the notes to the financial statements, presents multiyear trend information,which shows the actuarial liability as a percentage of covered payroll.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan asunderstood by the employer and the plan members) and include benefits provided at the time of eachvaluation and the historical pattern of sharing benefit costs between the employer and plan memberto that point. In the January 1. 2012 actuarial valuation, the unprojected unit-credit-actuarial-costmethod was used. The actuarial assumptions included a 3% projected investment rate of return andan annual healthcare cost trend of 8.10% during 2012, reduced to an ultimate rate of 4.70% after71 years. Both rates include a 2.50% inflation assumption. The amortization of the unfundedactuarial accrued liability is calculated assuming 25 annual payments increasing at 2.75% per year.The amortization method used is the level percentage of projected payroll method and theamortization period is a closed 30-year period beginning in 2007.
83 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(14) Risk Management
The City is exposed to various risk of loss related to torts, theft of damage to, and destruction of assets;errors and omissions; injuries to employees; and natural disasters. The City is self-insured with respect toits obligation to provide workers’ compensation, general liability, property damage, unemploymentbenefits, health and dental coverage, environmental, and antitrust.
The City sets aside assets for claim settlements in the general and individual proprietary funds. These fundsservice all claims for risk of loss to which the City is exposed including general liability, property, andcasualty up to $100,000 per occurrence. The City also services claims including workers’ compensation,employee health and dental, environmental, and antitrust, which are subject to unlimited liability by theCity.
The City maintains a Judgment Fund for the purpose of accumulating funds to satisfy judgments, damageclaims, and related litigation expenses against the City. It is sustained by an unlimited tax levy upontangible property within the City.
The City obtains an annual funding valuation from a claims servicing company managing the appropriatelevel of estimated claims liability for workers’ compensation claims. Liabilities are reported when it isprobable that a loss can be reasonably estimated. Liabilities are based on historical losses paid.
The City maintains a blanket surety bond covering all City employees, including those of the city clerk’soffice and the public libraries, in the amount of $250,000.
The City purchases commercial insurance for property damage of City buildings and contents in excess of$100,000. Settled claims have never exceeded this commercial coverage.
The City purchases commercial insurance for aviation liability for the police aviation unit, in the amount of$1,000,000 per person and $5,000,000 per occurrence for personal injury, and $200,000 for propertydamage. Settled claims have never exceeded this commercial coverage.
Changes in the balance of claims liabilities during the fiscal years 2012 and 2011 for workers’compensation and employee health and dental are as follows:
Beginning Current Endof year year Claim of yearliability claims payments liability
The City is a defendant in a number of lawsuits in its normal course of operations. In addition to the$1,950,000 recorded by the City as claims and judgments payable, the City Attorney is of the
84 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
opinion that there is a possibility that the City will incur additional losses on various lawsuits ofapproximately $6,540,000.
(b) Grants
The City participates in a number of federally assisted grant programs, principally Federal HighwayConstruction Grants, HUD Grants, Office of Justice Prevention Grants, Homeland Security,Department of Energy and Department of Transportation Grants, and other local improvementprograms. The programs are subject to financial and compliance audits. The amount of expenditures,if any that may be disallowed by granting agencies is not determinable at this time; however, Citymanagement does not believe that such amounts, if any, would be significant.
(c) Encumbrances
An encumbrance is the commitment of appropriated funds to purchase goods or services to bedelivered or performed at a future date. On a budget basis, an encumbrance is a reserve of fundbalance. The encumbrances are generally in a requisition form before the end of the budget year. Thepurchasing process must be initiated before year-end. The encumbrances do not lapse at year-end.Department heads are authorized to make or approve encumbrances in their respective departments.Contracts or purchase orders over $20,000 are approved by the City Council. Encumbrances areincluded in restricted, committed, assigned, or unassigned fund balances as appropriate.Encumbrances are detailed in the following table:
The City has various construction projects; specifically, the sewer fund is used to account for incomefrom sewer service charges, construction grants and related expenditures for operation, maintenanceand capital improvements of the sanitary sewer system and wastewater treatment plants. The City’sobligation under these construction commitments is $96,274,780 as of December 31, 2012.
85 (Continued)
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86(C
ontin
ued)
CITY OF OMAHA, NEBRASKA
Notes to Basic Financial Statements
December 31, 2012
(17) Subsequent Events
The City has evaluated subsequent events from the financial statement date through July 31, 2013, the dateat which the financial statements were issued, and determined there were no items to disclose.
(18) Discretely Presented Component Units
(a) Cash and Investments
As of June 30, 2012, the investment balances of the discretely presented components are as follows:
MECA
Investment Maturities Credit rating Fair value
Certificates of deposit 7/27/12-5/24/13 100% FDIC Insured $ 5,880,000Commercial paper 8/1/12 - 11/13/12 S&P-Al and Moody’s P1 6,892,881U.S. Treasury securities 10/31/12 - 5/15/13 N/A 5,495,905Government agency
discount notes 8/3/12 - 1/3/13 N/A 2,899,014
Totalinvestments $ 21,167,800
HWS had no investments.
(b) Capital Assets
Activity for the year ended June 30, 2012 for both of the component units’ property, equipment, andintangible assets and accumulated depreciation and amortization is as follows:
Additions &July 1, 2011 Reclassifications Dispositions June 30, 2012
Leasehold improvements $ 6,075,157 1,587,763 (3,070) 7,659,850Fumiture, fixtures, and
equipment 10,359,078 1,866,440 (387,351) 11,838,167Building rights 10,079,196
— 10,079,196Construction in progress 386,422 267,247
MECA’s long-term debt activity for the year ended June 30, 2012 is as follows:
Balance Balance,June 30, 2011 Additions Reductions June 30, 2012
City of Omaha $ 4,157,729 — (675,946) 3,481,783Food service contract 652,575 (326,280) 326,295
Total $ 4,810,304 (1,002,226) 3,808,078
Through the amended agreement and lease with the City, MECA agreed to exercise good faith andbest efforts to raise and pay over to the City the sum of $14,000,000 to offset additional fundsprovided by the City for the construction of the facility. Proceeds from the sale of Naming Rightswere specifically identified as a source of repayment. The Naming Rights have been sold to anoutside party under a Convention Center/Arena Naming Rights Agreement, which terminates onSeptember 1, 2018. As a result, the obligation for the repayment of this portion of the constructionfunds has been recorded as long-term debt payable to the City offset by recording intangibleBuilding Rights.
Under a long-term contract for food service operations, MECA received a $4,000,000 interest-freeloan from the contractor for the purchase of food service equipment and leasehold improvements.The loan is to be repaid over the 10-year period of the contract, which began in July 2003.
MECA’s Debt service payments for the City and food service contract debt are as follows:
MECA entered into a long-term contract for food service operations in November 2001. The termsof the contract commit MECA to a 10-year CPI indexed annual payment to the contractor of$727,226 and $715,493 for the years ended June 30, 2012 and 2011. There are incentive provisionsin the contract that may result in additional payments to the contractor. Such incentives totaled$181,807 for the year ended June 30, 2012. The remaining cost of such commitments as of June 30,2012 is as follows:
Year ending June 30:2013 $ 1,000,000
$ 1,000,000
89
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REQUIRED SUPPLEMENTARY INFORMATION(Unaudited)
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CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — General Fund
(Unaudited)
Year ended December 31, 2013
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:Property tax S 78,519,348 78,519,348 79,123,615 604,267Motor vehicle taxes 9,408,238 9,408,238 9,163,518 (244,720)City sales and use tax 131,466,507 131,466,507 131.859,046 392,539Business taxes 20,789,410 20,789,410 21.694,969 905,559Taxes in lieu 4,877,090 4,877,090 3.956,031 (921,059)Licenses and pennits 8,620.323 8,620,323 8.4 17.387 (202,936)Intergovernmental revenues — — (480) (480)Charges for services 19,252,164 19,252,164 20,613,005 1,360.841Revenue for KENO 545,865 545,865 554,533 8,668interest income 1,375,000 1,375,000 682,977 (692,023)Rent and royalties 204,000 204,000 965,061 761,061Miscellaneous 1,639,475 1,639,475 107,663 (1,531,812)Restaurant Tax 19,084,888 19,084,888 24,851,426 5,766,538Business Usage 12,440,078 12,440,078 11,348,853 (1,091,225)Revenue from Stadium 3,631,921 3,631,921 3,720,401 88,480
Total revenues 311,854,307 311,854,307 317,058,005 5,203,698
Net changes in fund balances (2,172,850) (2,305,510) 4,933,989 7,239,499
Fund balances — beginning of year — — 5,730,091 5,730,091Lapsed encumbrances — — 1,480,750 1,480,750Transfers out
— — (70,200) (70,200)Transfers in — — — —
Fund balances — end of year S (2,172,850) (2,305,510) 12,074,630 14,380,140
See accompanying notes to schedule of revenues. expenditures. and changes in fund balances — budget and actual — general fund.
90
CITY OF OMAHA, NEBRASKA
Notes to Budgetary ComparisonSchedule — General Fund
Unaudited
Year ended December 31, 2012
(1) Budget and Budgetary Accounting
The Mayor is required by the City Charter to prepare and submit an annual budget to the City Council. Abudget is prepared for the general fund and all special revenue funds, exclusive of all grant funds and theservice-type special assessments fund. These budgets are prepared primarily on a cash basis for revenuesand modified accrual basis for expenditures. The budget presented reflects the original budget and therevised budget prior to the closing ordinance. In addition, encumbrances are reported as expenditures forbudgetary purposes. Under this system, purchase orders, contracts, and other commitments for theexpenditure of funds are recorded as encumbrances in order to reserve a portion of the applicableappropriation.
Budgetary control is maintained by department/division and by the following category of expenditures:personnel services, nonpersonnel services, capital outlay, and debt service. All budget amendments mustbe approved by the Mayor and/or City Council. Unencumbered appropriations lapse at the end of the fiscalyear. Encumbered funds are carried over to the ensuing fiscal year until utilized or canceled.
The City Charter also requires the City Council each year to make an ad valorem tax levy for a sinkingfund (debt service fund) that shall provide for principal and interest payments on the general obligationbonded indebtedness of the City.
Appropriations for certain special revenue funds and capital projects funds are controlled on a project basisand are carried forward each year until the project is completed or grant funds are expended.
Budgets are also prepared for the proprietary funds as a management control device. The budgets for thesefunds are prepared on a revenue and expenditure basis similar to the budgets for the governmental fundtypes.
(2) Reconciliation of Budget-Basis Revenues and Expenditures to GAAP
Revenue and expenditures presented on a non-GAAP budget basis of accounting differ from the revenuesand expenditures presented in accordance with GAAP because of the different treatment of encumbrancesand accruals (revenue recognition).
In addition, Section 5.14 of the City of Omaha’s Home Rule Charter requires, in relevant part, that theyear-end general fund balance “. . . be applied as general fund revenue in the budget for the fiscal year twoyears subsequent to that fiscal year.” Therefore, the amount of the general fund carryover coming into aparticular fiscal year has already been determined. Any general fund encumbrances at the end of a fiscalyear are not included in the year-end general fund balance because those encumbrances will normally needto be paid in the following fiscal year and cannot be held until the fiscal year two years subsequent to thefiscal year when the encumbrance was incurred.
91 (Continued)
CITY OF OMAHA, NEBRASKA
Notes to Budgetary ComparisonSchedule — General Fund
Unaudited
Year ended December 31, 2012
All general fund encumbrances are charged to the appropriate accounts at the end of the fiscal year. Thisallows those funds to be kept separate from the year-end general fund balance. Therefore, when the actualpayments to the vendors are required in the following fiscal year, there are general fund moneys available.A reconciliation of the differences between the budgetary versus GAAP is presented as follows:
General fund
Budget basis:2ol2carryoverto2ol4 $ 2,714,3132011 carryover to 2013 9,360,317
Budgeted expenditures were exceeded in the following departments/divisions:
Department/division Amount
General fund:Mayor’s Office $ (80,923)City Council (4,603)Human Resources (91,451)Planning (122,713)Public safety:
Fire (7,152,714)Public works:
Street and highway (1,044,423)Culture and parks:
Parks and recreation (850,139)Libraries (95,897)
Stadium (807,235)
92
CITY OF OMAHA, NEBRASKA
Schedules of Funding Progress and Employer Contributions
Year ended December 31, 2012
Unaudited
Civilian Plan Schedule of Funding Progress(Dollars in millions)
Actuarial UAAL as aActuarial accrued Unfunded percentagevalue of liability (AAL) AAL Covered of coveredassets entry age (UAAL) Funded ratio payroll payroll
Actuarial valuation date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
Uniformed Plan Schedule of Funding Progress(Dollars in millions)
Actuarial UAAL as aActuarial accrued Unfunded percentagevalue of liability (A.AL) AAL Covered of coveredassets entry age (UA.AL) Funded ratio payroll payroll
Actuarial valuation date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
Capital outlay:Other public services 542,602 866,101 — 1,408,703Public safety — — 3,130,138 — 3,130,138Culture and parks 109,890 — 7,904,145 — 8,014,035General government — — 1,564,289 — 1,564,289Transportation 2,144,733 — 12,438,523 — 14,583,256Community development — — 3,861,837 — 3,861,837
Total expenditures 105,130,572 9,784,482 31,326,882 73,750 146,315,686
Other financing sources (uses):Transfers in 690,088 - 1,486,647 — 2,176,735Transfers Out (1,489,870) — (587,137) — (2,077,007)Sale of capital assets — — 658,000 — 658,000Proceeds from the issuance of bonds —- 11,785,000 30,770,862 — 42,555,862Proceeds of refunding bonds — 35,067,065 — — 35,067,065Proceeds from bond premium — 1,815,011 2,258,883 — 4,073,894Discount on sale of bonds — (3,922) — (3,922)Payment to refunded bond escrow agent — (47,877,188) — — (47,877,188)
Total other financing sources (uses) (799,782) 789,888 34,583,333 — 34,573,439
Net change in fund balance 27,038,121 (98,550) 21,356,234 9,366 48,305,171
Beginning fund balance (423,535) 3,898,240 (5,941,778) 3,169,961 702,888
Ending fund balance $ 26,614,586 3,799,690 15,414,456 3,179,327 49,008,059
See accompanying independent auditors’ report.
96
SPECIAL REVENUE FUNDS
juqqoiLilnuopuow!ohdsp
CITY OF OMAHA, NEBRASKA
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds account for the proceeds from specific revenue sources that are restricted to expendituresfor specified purposes.
Judgment Fund — To accumulate resources for the purpose of providing a means to satisfy judgments, damageclaims, and related litigation expenses against the City. It is sustained by a Judgment Fund tax levy upon tangibleproperty. The actual and projected revenues are derived from a levy of 0.6 cents per $100 in 2007 —2012.
Public Library Contribution Fund — To accumulate and hold special contributions for the library from outsidesources. Funds are generally restricted for specific purposes to enhance library operations. The trust fundincludes grants, gifts, State Aid, and contributions from Friends of the Library and the Library Foundation.
Library Fines and Fees Fund — To account for the revenues generated through fees and fines collected by theLibrary.
Douglas County Library Supplement Fund — To account for the revenue generated by a property tax levyassessed on Douglas County residents living in unincorporated areas. The Douglas County Board passed thislevy in 1995 for the purpose of providing countywide funding for the Omaha Public Library System.
Miscellaneous Contribution Fund — To account for money collected and encumbered into this ExpendableTrust Fund. These short-term “small funds” are not large enough for the creation of a fund and are established forthe sole purpose of private entity or individual contributions for specific usage of funds. Organizations withcurrent year activity or previous year balances are shown individually on the Organization Sheet.
Keno/Lottery Proceeds Fund — To accumulate resources from the City’s percentage of Keno revenue in theCity and account for activities financed with Keno revenues.
SIB Administrative Fee Revenue Fund — To collect a 1% fee on Sanitary and Improvement District finalconstruction costs. The City ordinance #36247 passed April 29, 2003 authorized the City to collect a 1% fee (1%of final construction costs) from subdivision applications using Sanitary and Improvement District (SID)financing.
Storm Water Fee Revenue Fund — To account for revenues collected from a fee charged to all retailMetropolitan Utilities District customers. The funds are used to implement administrative requirements of theNPDE5 Storm Water Permit issued by the Nebraska Department of Environmental Quality in 2003. Thisfunction is mandated by the Environmental Protection Agency of the Federal Government.
City Street Maintenance Fund — To account for the usage of City motor vehicle registration fees and street cutfees. The City Motor Vehicle Registration Fee was increased to $50.00 per passenger vehicle, with a graduatedschedule for larger vehicles. The street cut fee, derived from local utilities and contractors, is based upon the sizeof the street cut. Use of funds is restricted to street maintenance and repair purposes and their related costs.
Street and Highway Allocation Fund — To account for usage of State shared vehicle user taxes allocated to theCity. Usage of fund proceeds is restricted to street maintenance, improvements, and related purposes. In additionto the state gasoline tax portion, cities and counties divide an additional 2 cents per gallon as authorized by the1985 State Legislature.
97 (Continued)
CITY OF OMAHA, NEBRASKA
Nonmajor Governmental Funds
Special Revenue Funds
Interceptor Sewer Construction Fund — To accumulate resources from the Special Sewer Connection Feescharged to new plats outside the City limits within the Papillion Creek Watershed and existing platted lots asthey are developed. These fees are used to finance the extension and/or relief of existing interceptor sanitarysewers in the Papillion Creek Watershed Basin.
Community Park Development Fund — To account for the costs of community park acquisition, and parkimprovements in suburban Omaha. In addition, subdivision agreements include provisions for revenues to becollected from Sanitary Improvement Districts at appropriate debt to value intervals.
Storm Water Management Plan Program — To account for storm water planning grants received. These fundsare used primarily for implementation.
State Turn Back Revenue Fund — To account for money collected upon adoption of LB 551 by the StateLegislature and amended in 2008 by LB 754 and LB 912. The City receives 70% of the state sales tax collectedthrough the Qwest Center Omaha and the Hiltbn hotel. The majority of these funds are used to repay the QwestCenter debt. The remaining 10% of the City’s revenue from this source is to be distributed for tourism-relatedpurposes in the areas of the City with high concentrations of poverty.
Ballpark Revenue Fund — With the passage of City Ordinance #68123 dated June 1, 2008, the City Councilestablished the Ballpark Revenue Fund. The purpose of this special revenue fund is to accumulate excess CollegeWorld Series revenues for any purpose related to the New Stadium or its operations. The annual excess of PublicFunds that exceed the stadium debt service or the Variable Funds that exceed planned projections are to bedeposited into this fund. The City’s portion of College World Series revenue shall also be deposited into thisfund. The City may retain all Public Surplus Funds in the event the fund balance of this fund exceeds$10,000,000.
Keno Lottery Reserve Fund — To account for the reserve perpetual fund in accordance with OrdinanceNo. 34688 passed in 1998. Twenty-five (25%) of all Keno revenue must be credited to this fund until the fundbalance reaches $2,370,000. After this reserve fund reaches $3,000,000, 25% of the interest earned stays in thefund; 75% is appropriated as permitted.
Grants Fund — To account for costs associated with activities related to various grants received by the City,which are designated for a specific purpose or period of time.
Greater Omaha Convention and Visitors Bureau Fund — To account for the operations of the Greater OmahaConvention and Visitors Bureau, which is a City department established to improve the City’s economy byattracting conventions and visitors.
Household Chemical Disposal Fund — To account for funds related to the collection of household hazardouswaste. In August 2001, an Interlocal Agreement between Omaha, Douglas, and Sarpy counties was executed toestablish a regional collection center for household hazardous waste (HHW).
Development Revenue Fund — To record fees collected on Tax Increment Financing (TIF) projects inaccordance with the City of Omaha Municipal Code, Section 24-150, Fees: Tax Increment FinancingApplications, Processing and Administration. Funds received will be used to fund additional staff required toadminister the processing of TIF applications.
98 (Continued)
CITY OF OMAHA, NEBRASKA
Nonmajor Governmental Funds
Special Revenue Funds
Technology and Training — To account for technology and training fees from any permit, inspection, zoningapproval, subdivision approval, board application, or other item sought from or performed by the PlanningDepartment. Fees collected will be used to defray the costs of enhancing the technological resources and trainingof the Planning Department. This is City Council ordinance number 39121.
99
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Pub
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$2,
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______________
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_____
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1,17
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s
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rs’
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2,18
4,11
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2,18
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(338
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100
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(Con
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Ass
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2,00
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2,53
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670,
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45,8
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____
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__
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1,88
2,29
63,
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1,88
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6,08
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2,37
4,24
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9,74
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3,76
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4,31
7,46
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3,34
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3,34
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3,34
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7
2,49
1,47
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68,7
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Ass
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123,
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278,
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1,35
6,93
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405
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561
564.
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4.20
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1.70
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2,70
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1,38
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2.64
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32.
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8,24
02,
184.
117
(338
.192
)
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acco
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nyin
gin
depe
tide
ntau
dito
rs’
repo
rt.
(Con
tinu
ed)
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107
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Judgment Fund
Year ended December 31, 2012
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:Taxes property S 1,656,119 1,656,119 1,671,346 15,227Taxes in lieu 2,531 2,531 6,104 3,573
Total revenues 1,658,650 1,658,650 1,677,450 18,800
Expenditures:General government 2,007,402 2,007,402 3,237,766 (1,230,364)Culture and parks
_______________
— 2,534 (2,534)
Total expenditures 2,007,402 2,007,402 3,240,300 (1,232,898)
Excess (deficiency) of revenuesover expenditures (348,752) (348,752) (1,562,850) (1,214,098)
Net change in fund balances (348,752) (348,752) (1,562,850) (1,214,098)
Fund balances—beginning 2,645,377 2,645,377 4,203,136 1,557,759
Fund balances—ending $ 2,296,625 2,296,625 2,640,286 343,661
See accompanying independent auditors’ report.
108
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Library Fine and Fees Fund
Year ended December 31, 2012
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:Charges for services $ 440,755 440,755 454,880 14,125
Total revenues 440,755 440,755 454,880 14,125
Expenditures:Culture and parks 564,925 564,925 564,925 —
Total expenditures 564,925 564,925 564,925 —
Excess of revenues overexpenditures (124,170) (124,170) (110,045) 14,125
Net change in fund balance (124,170) (124,170) (110,045) 14,125
Fund balances — beginning 125,822 125,822 112,706 (13,116)
Fundbalances—ending $ 1,652 1,652 2,661 1,009
See accompanying independent auditors’ report.
109
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Douglas County Library Supplement Fund
The Debt Service Funds are used to account for the resources for, and the payment of, general long-term debtprincipal, interest, and related costs.
Riverfront Redevelopment Special Tax Fund — To accumulate revenues and pay bond and interest obligationson Redevelopment Bonds. The property tax levy for 2006, 2007, 2008, and 2009 is 0.894 cents per $100 oftaxable valuation. It was increased to 1.594 cents per $100 of taxable valuation in 2010 and is the same through2012.
This Redevelopment Debt Service Fund services the following issuances:
These bonds are serviced by a variety of revenues sources including Property Tax Revenue, Tax AllocationRevenue, State Cigarette Tax, NRD Miller Park Contribution, Douglas County Miller Park Contribution, CenturyLink naming rights, and land sales.
122
CITY OF OMAHA, NEBRASKA
Balance Sheet
Nonmajor Debt Service Fund — Riverfront Redevelopment Special Tax Fund
December 31, 2012
Riverfrontredevelopment
specialAssets tax
Cash and pooled investments $ 3,387,083Receivables (net of allowance for uncollectibles) 7,385,023Due from other governments 387,060
Totalassets $ 11,159,166
Liabilities and Fund Balances
Liabilities:Accounts payable and other current liabilities $ 11,946Unearned revenue 1,421Advance revenue 7,346,109
Total liabilities 7,359,476
Fund balances:Restricted 3,799,690
Total fund balance 3,799,690
Total liabilities and fund balance $ 11,159,166
See accompanying independent auditors’ report.
123
CITY OF OMAHA, NEBRASKA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmaj or Debt Service Fund — Riverfront Redevelopment Special Tax Fund
Year ended December 31, 2012
Riverfrontredevelopment
specialtax
Revenues:Taxes:
Property $ 6,260,102In lieu 16,218
Intergovernmental 1,500,000Investment income 26,813Rents, royalties, and other 825,000Contributions and grants 267,9 1 1
Total revenues 8,896,044
Expenditures:Current:
General government 54,428Debt service:
Principal 3,985,264Interest 5,323,955Bond issuance costs 420,835
Total expenditures 9,784,482
Other financing sources:Proceeds from the issuance of bonds 11,785,000Proceeds of refunding bonds 35,067,065Proceeds from bond premium 1,815,011Payment to refunded bond escrow agent (47,877,188)
Total other financing sources 789,888
Net change in fund balances (98,550)
Beginning fund balance 3,898,240
Ending fund balance $ 3,799,690
See accompanying independent auditors’ report.
124
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Debt Service Fund
Year ended December 31, 2012
(Unaudited)
Revenues:Taxes propertyTaxes in lieuIntergovernmentalInvestment incomeCharges for servicesContributions and grants
Other financing sources (uses):Proceeds from issuance of bondsProceeds from bond premiumPayment to refunded bond escrow agent
Total other financing sources
Net change in fund balance
Fund balances — beginning
Fund balances — ending
S 53,219,37481,334
200,0002,157,5843,019,349
58,677,641
694,766
37,532,33323,850,886
62,077,985
(3,400,344)
Final Actual
53,660,317196,169
2,175,678966,136
2,633,4242,414,956
62,046,680
694,766 738,724
38,180,61423,226,637
480,275
62,626,250
(3,400,344) (579,570)
35,335,0004,306,871
(38,968,646)
_______________
673,225
(3,400,344) 93,655
Variance withfinal budget
positive(negative)
440,943114,835
2,175,678766,136475,840
(604,393)
3,369,039
(43,958)
(648,281)624,249
(480,275)
(548,265)
2,820,774
35,335,0004,306,871
(38,968,646)
673,225
3,493,999
See accompanying independent auditors’ report.
Budgeted amountsOriginal
53,219,37481,334
200,0002,157,5843,019,349
58,677,641
37,532,33323,850,886
62,077,985
(3,400,344)
16,746,784 16,746,784 18,595,398 1,848,614
$ 13,346,440 13,346,440 18,689,053 5,342,613
125
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Riverfront Redevelopment Special Tax Fund
Year ended December 31, 2012
(Unaudited)
Revenues:Taxes propertyTaxes in lieuIntergovernmentalInvestment incomeRents, royalties, and otherContributions and grants
Total revenues
Expenditures:General governmentDebt service principalDebt service interestDebt service bond issuance costs
Total expenditures
Deficiency of revenues overexpenditures
Other financing sources (uses):Proceeds from issuance of bondsProceeds of refunding bondsProceeds from bond premiumPayment to refunded bond escrow agent
Total other financing sources
Net change in fund balance
Fund balances — beginning
Fund balances — ending
S 6,420,7196,724
1,500,000
825,000287,230
9,039,673
58,9503,835,2645,610,594
9,504,808
(465,135)
Final Actual
6,260,10216,218
1,500,00026,813
825,000
_____________
267,911
9,039,673 8,896,044
54,4283,985,2645,323,955
______________
420,835
_______________
9,784,482
(465,135) (888,438)
11,785,00035,067,065
1,815,011(47,877,188)
_______________
789,888
(465,135) (98,550)
Variance withfinal budget
positive(negative)
(160,617)9,494
26,813
(19,319)
(143,629)
4,522(150,000)286,639
(420,835)
(279,674)
(423,303)
11,785,00035,067,065
1,815,011(47,877,188)
789,888
366,585
See accompanying independent auditors’ report.
Budgeted amountsOriginal
6,420,7196,724
1,500,000
825,000287,230
58,9503,835,2645,610,594
9,504,808
(465,135)
3,119,507 3,119,507 3,898,240 (778,733)
S 2,654,372 2,654,372 3,799,690 1,145,318
126
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NONMAJOR CAPITAL PROJECT FUNDS
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CITY OF OMAHA, NEBRASKA
Nonmajor Governmental Funds
Capital Project Funds
The Capital Projects Funds are used to account for and report financial resources that are restricted, committed,or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities andother capital facilities and other capital assets. Capital projects funds exclude those types of capital relatedoutflows financed by proprietary funds or for assets that will be held in trust for individuals, privateorganizations, or other governments.
ASARCO/Lewis and Clark Remediation Fund — To develop initial public improvements associated with theconversion of the ASARCO property to a public recreational area, along with other improvements along theriverfront. Improvements will include trails, benches, landscaping, roads, parking lots, and similar publicdevelopments. In addition, the agreement requires ASARCO to deposit $1.5 million to be invested by the City tofund long-term remediation costs.
Advanced Acquisition Fund — To account for net proceeds from the sale or exchange of real property. The netproceeds from the sale or exchange of real property not needed for public purposes are to be credited to this find.Section 5.03 of the Municipal Code permits usage of available funds to facilitate the orderly and timelyacquisition of real estate for public purposes as proposed in the master plan.
City Capital Improvement Fund — To account for money supplemented by General Fund appropriations andgrants used to fund various city projects.
2006 Environmental Bond Fund — To account for money received through the issuance of a general obligationbond voted on in the May 2006 primary election. Proceeds from the sale of the bond are used toward the cost ofconstmction and improvement of storm, sanitary, and interceptor sewers throughout the City.
2010 Environmental Bond Fund — To account for money received through the issuance of a general obligationbond voted on in the May 2010 primary election. Proceeds from the sale of the bond are used toward the cost ofconstmction and improvement of storm, sanitary, and interceptor sewers throughout the City.
Airport Business Park Development Fund — To account for contributions received from developers whorequest Tax Increment Financing throughout the Downtown Northeast area. This requirement is incorporated inthe Redevelopment Agreement between the City of Omaha and the developer when sewer connections arerequired within the Airport Industrial Park and/or East Omaha Detention Cells. All sewer connection fees withinthis area are paid by this fund. Other funding is provided by TIF proceeds and the sale of land.
2006 Transportation Bond Fund — To account for money received through the issuance of general obligationbonds in the May 2006 primary elections. Proceeds from the sale of these bonds are used toward the cost ofconstruction and improvement of streets, expressways, freeways, and various bridge improvements throughoutthe City.
2010 Transportation Bond Fund — To account for money received through the issuance of general obligationbonds in the May 2010 primary elections. Proceeds from the sale of these bonds are used toward the cost ofconstruction and improvement of streets, expressways, freeways, and various bridge improvements throughoutthe City.
127 (Continued)
CITY OF OMAHA, NEBRASKA
Nonmajor Governmental Funds3”.
Capital Project Funds
2006 Public Facilities Bond Fund — To account for the construction of projects funded with proceeds from the2006 Public Facility Bond Authorization. The Bond Authorization amount is $16,410,000.
2010 Public Facilities Bond Fund — To account for the construction of projects funded with proceeds from the2010 Public Facility Bond Authorization. The Bond Authorization amount is $8,025,000.
2006 Public Safety Bond Fund — To account for money received through the issuance of general obligationbonds in the May 2006 primary election. Proceeds from the sale of these bonds will be used for various publicsafety capital expenditures, including the purchase of aerials, pumpers, and emergency vehicle preemptionsystem equipment.
2010 Public Safety Bond Fund — To account for money received through the issuance of general obligationbonds in the May 2010 primary election. Proceeds from the sale of these bonds will be used for various publicsafety capital expenditures, including the purchase of aerials, pumpers, and emergency vehicle preemptionsystem equipment.
2000 Park and Recreation Bond 2002 #1 Fund — To account for this Capital Project fund, which was createddue to the November, 2000 Primary Election, the voters authorized the issuance of $10,500,000 of GeneralObligation Bonds. Various smaller projects remain and should complete in 2009 to expend this fund fully.
2006 Parks and Recreation Bond Fund — To account for the City of Omaha 2006 Bond issue. The City ofOmaha citizens voted and approved, in the spring of 2006, to issue $16,930,000 in General Obligation bonds.This money will be used for development and rehabilitation of City of Omaha Parks, and Recreations Centers.
2010 Parks and Recreation Bond Fund — To account for the City of Omaha 2010 Bond issue. The City ofOmaha citizens voted and approved on May 11, 2010 to issuance of $14,410,000 in General Obligation bonds.This money will be used for development and rehabilitation of City of Omaha Parks and Recreations Centers.
Downtown Stadium & Companion Project — To account for the construction of a new City baseball stadium tobe built between 10th and 13th Streets between Cuming and Webster Streets. The City of Omaha FacilitiesCorporation will issue lease purchase bonds to provide funding. On June 10, 2008, the Omaha City Counciladopted Ordinance 38124 approving the Sixth Amendment to the Agreement and Lease regarding the OmahaConvention Center/Arena between the City and MECA (Metropolitan Entertainment & Convention Authority) toprovide for the construction and operation.
Pedestrian Trail Bridge — Joint Use Omaha/Council Bluffs Fund — To account for moneys spent toward theoperation and maintenance of the Missouri River Pedestrian Bridge. Funds received in this fund may be usedtoward inspection, operation and maintenance costs of the crossing bridge.
Missouri River Pedestrian Bridge Fund — To account for the costs associated with the construction of theMissouri River Pedestrian Bridge.
Back to the River Project Fund — To track expenditures associated with the Riverfront Trail — North/NorthOmaha Connector Grant. The City of Omaha received this grant from the Nebraska Department of Roads toconstruct two major trails, the riverfront trail from ASARCO north to NP Dodge Park and the North OmahaConnector, which will connect this to the Keystone Trail.
128 (Continued)
CITY OF OMAHA, NEBRASKA
Nonmajor Governmental Funds
Capital Project Funds
UNMC Infrastructure Improvements Fund — To account for the redevelopment of 42nd Street within theUniversity of Nebraska Medical Center campus. The fund will provide for fully reimbursable expenditures forstreet and other infrastructure development to the site. The project entails a reduction from 4 to 2 lanes of throughtraffic creating a pedestrian friendly streetscape. The project has been expanded to include the study of therelocation of Saddle Creek Road to the west permitting development of the previous roadbed into an urbancampus.
Downtown Development Fund — To account for the redevelopment of the site known as Pinnacle Foods locatedacross 10th Street from the Qwest Center. The fund represents the City’s exercise of its “right of first refusal” toacquire this prime development property.
Library Facilities Capital Fund — To pay off yearly bond obligations for capital projects to improve facilities ofthe Omaha Public Library. Phase II of this project would include purchase of land in west central, southwest, andnorthwest Omaha areas. Other projects include the renovation of W. Dale Clark Library, Swanson Branch, andAbrahams Branch.
Capital Special Assessment Fund — To account for Public Works assessments for sidewalks and sewer repairsdone by the City. This is assessed annually for the homeowner with outstanding bills. S.I.D.’s are also billed forstreet and sewer repairs.
Service Special Assessment Fund — To account for a Parks and Recreation fund to enforce the city codes forweeds, litter, and demolition of buildings. This is assessed annually for the homeowner with outstanding bills.
129
CiT
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HA
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Non
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s
Dec
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r31
2012
AS
AR
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Lew
is&
2006
2010
Bus
ines
s20
0620
10
Cla
rkA
dvan
ced
Cit
yC
apit
alE
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iron
nsen
tal
En
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on
men
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Tra
nsp
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n20
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Ass
ets
Rem
edia
tio
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Impro
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Bon
dB
ond
t)ev
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men
tB
ond
Bon
dF
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sB
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Cas
han
dpo
oled
inve
stm
ents
S40
4,82
826
5,59
444
247
2,32
894
,705
609,
582
1,92
225
8,68
61.
209.
530
Inve
stm
ents
(.50
0.54
4—
—-
——
—
Rec
eiva
bles
(net
of
allo
wan
cefo
run
coll
ecti
hles
)—
—66
.742
——
.061
)732
2,7(
6
Due
fron
tot
her
gove
rnm
ents
—24
4.84
0—
—55
,110
Due
from
othe
rSt
uds
2.59
2.11
00—
1.9(
10.0
004.
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000
—
Acc
rtte
din
tere
st2,
550
—
Oth
eras
sets
—49
8,S
99D
epos
its
with
trus
tee
——
7.12
1,43
7—
—.
——
——
Tot
alas
sets
51,
907,
922
2.85
7.59
47,
932.
360
472.
328
1.99
4.70
560
9,58
25.
117.
764
261,
402
1.20
9.53
0
Lia
bil
itie
san
dF
und
Bal
ance
s
Litt
bilit
ies:
Acc
ount
spa
yabl
ean
dot
her
curr
ent
liabi
litie
sS
6.90
01.
496.
538
123.
234
4.12
0-
264.
662
159.
718
76.8
23
Dtte
toot
her
fund
s—
592,
00(1
——
Due
togo
vern
men
ts—
..
—
Adv
ance
reve
nue
——
—16
,587
——
1,04
0,98
9—
——
Tot
allia
bilit
ies
—6.
900
2.10
5,12
512
3.24
44,
120
—1.
305,
651
159,
718
76,8
23
Fund
bala
nce
(def
icit
):R
estr
icte
d—
349.
084
1,99
0,58
5—
3,81
2,11
310
1,68
41.
132,
707
Cot
nmit
ted
1,90
7,92
22,
850,
694
—-
——
—
Ass
igtt
ed—
—5,
827,
235
——
609,
582
—
Unt
tssi
gned
——
——
——
——
—
Tot
alfu
ndba
lanc
e(d
efic
it)
1,90
7,92
22,
850,
694
5,82
7,23
534
9,08
41.
990.
585
609,
582
3,81
2,11
310
1,68
4l.
l32,7
07
Tot
allia
bilit
ies
and
fund
bala
ttee
(def
icit
)S
1,90
7,92
22.
857,
594
7,93
2,36
047
2,32
81.
994.
705
609,
582
5,11
7,76
426
1,40
21.
209,
530
See
acco
mpa
nytn
gin
depe
ndet
ttau
dito
rs’
repo
rt.
(Cou
tinst
ed)
130
CIT
YO
FO
MA
HA
,N
EB
RA
SK
A
Com
bini
ngB
alan
ceSh
eet
No
maj
orC
apit
alP
roje
cts
Fund
s
Dec
embe
r3
2012
Ped
estr
ian
Dow
ntow
nT
rail
Bri
dge
Mis
sour
i
2006
2010
2000
Par
kan
d20
06P
arks
2010
Par
ks
Sta
dium
&Jo
int
Use
Riv
er
2010
Pub
lic
Pub
lic
Saf
ety
Pub
lic
Saf
ety
Rec
reat
ion
and
Rec
reat
ion
and
Rec
reat
ion
Com
pani
onO
mah
a/C
ounc
ilP
edes
tria
n
Ass
ets
Fac
ilit
ies
Bon
dB
ond
Bon
d20
02#1
Bon
dB
ond
Pro
ject
Blu
ffs
Bri
dge
Cas
han
dpo
oled
inve
stm
ents
S.5
4403
01.
010,
764
271.
676
6147
6,18
696
,341
96,9
32—
Inve
stm
ents
——
——
——
—
Rec
eiva
bles
(net
ofal
low
ance
for
unco
llec
tibl
es)
——
43.6
9355
1,70
711
.000
,000
“-
100,
000
Due
from
othe
rgo
vern
men
ts—
——
——
-—
Due
from
othe
rfu
nds
——
—81
1.40
02.
300.
000
100.
000
Acc
rued
inte
rest
——
,-—
Oth
eras
sets
——
.—
——
Dep
osit
sw
ithtr
uste
e—
——
869.
078
—
Tot
alas
sets
S1,
544,
030
1,01
0,76
427
1,67
661
1,33
1,27
92,
948.
048
11.8
69.0
7896
,932
100,
000
Lia
bil
itie
san
dF
ond
Bal
ance
s
Lia
bilit
ies:
Acc
ount
spa
yabl
ean
dot
her
curr
ent
liabi
litie
sS
150.
450
676,
207
—(1
1,33
9)20
2,36
154
8,50
6—
.-
9,50
3
Due
toot
her
fund
s—
—11
.400
—‘
11,0
00,0
00—
100.
000
Due
togo
vern
men
ts—
——
——
——
——
Adv
ance
reve
nue
——
12,7
64
__
___
____
____
___
11,0
00.0
00—
100.
000
Tol
allia
bilit
ies
159,
450
676,
207
—61
215,
125
548,
506
22,0
00,0
009,
503
200.
000
Ftin
dba
lanc
e(d
efic
it):
Res
tric
ted
1,38
4,58
033
4,55
727
1,67
6—
1,11
6,15
42,
399,
542
—18
7,42
9—
Com
mit
ted
—,
——
——
——
——
Ass
igne
d—
——
——
——
——
Una
ssig
ned
—‘
——
——
—(1
0,13
0,92
2)—
(100
.000
)
Tot
alth
udba
lanc
e(d
efic
it)
1,38
4,58
033
4,55
727
1,67
6—
1,116
,154
2,39
9,54
2(1
0,13
0,92
2)18
7,42
9(1
00,0
00)
Tot
allia
bilil
ies
and
thud
bala
nce
(def
icit
)S
1,54
4,03
01,
010,
764
271.
676
611,
331,
279
2.94
8,04
811
,869
,078
196,
932
100,
000
See
acco
mpa
nyin
gin
depe
nden
tau
dito
rs’
repo
rt.
(Con
tinu
ed)
131
CIT
YO
FO
.IA
HA
,N
EB
RA
SK
A
Com
bini
ngB
alan
ceSh
eet
Non
maj
orC
apit
alP
roje
cts
Fund
s
Dec
embe
r31
2012
UN
MC
Lib
rary
Cap
ital
Tot
alB
ack
toth
eIn
fras
truct
ure
Dos
vnto
ssn
Fac
ilit
ies
Spe
cial
Ser
vice
Spe
cial
Cap
ital
Ass
ets
Riv
erP
roje
ctIm
pro
vem
ent
Dev
elop
men
tC
apit
alA
sses
smen
tA
sses
snie
nlP
roje
cts
Cas
han
dpo
oled
inve
stm
ents
$60
3.57
9—
7,10
720
714
8,80
167
5,46
58,
248,
766
Inve
slnt
ents
——
—
—15
00,5
44
Rec
eiva
bles
(net
ofal
losv
ance
for
unco
llec
tibl
es)
—1,
452
—1.
560,
042
2,02
5.87
216
,41
2,95
6
Due
lions
othe
rgo
vern
tnte
nls
12,0
2625
,000
——
4,20
84,
363
345.
547
Dtte
frot
tsot
her
fund
s—
——
——
-—
11,7
03,4
00
Acc
rued
ittle
rest
-—
——
249
518
3,31
7
Otl
ter
asse
ts—
——
—
—49
8,89
9D
ep
osits
with
tru
stee
______________
—
—
______________
___
___
_____
___
7,99
0,51
5
Tot
alas
sets
$61
5,60
525
,000
8,55
920
71,
713,
300
2,70
6,21
846
,703
,944
Lia
bili
ties
and
Fun
dB
alan
ces
Lia
bilit
ies:
Acc
ottit
lspa
yabl
ean
dot
her
curr
ent
liabi
litie
s$
264
—8.
325
-67
,525
3.79
2,80
7D
ue10
oUte
rfu
nds
——
——
11,7
03,4
00D
ueto
gove
rnit
tent
s—
—25
.000
—---.
—25
,000
Adv
ance
rcve
tttte
12.0
27—
—
______________
1,56
0,04
22,
025,
872
15,7
68,2
81
Tot
allia
bilit
ies
12,2
9125
,000
8.32
5—
1,62
7,56
72.
025.
872
31.2
89,4
88
Fund
bala
nce
(del
ictI
):R
estr
icte
d60
3.31
4—
——
13,6
83.4
25C
otts
ntilt
ed—
234
207
85.7
3368
0.34
65,
525,
136
Ass
igne
d—
——
——
6.43
6.81
7U
nass
igne
d—
——
——
—(1
0.23
0,92
2)
Tot
alfu
ndba
lanc
e(d
efic
it)
603,
314
—23
420
785
.733
680,
346
15.4
14.4
56
Tot
allia
bilit
ies
aitd
fund
bala
nce
(def
icit
)S
615,
605
25,0
008.
559
207
1,71
3,30
02,
706.
218
46.7
03,9
44
See
acco
ttip
anyi
ngin
depe
nden
tau
dtto
rs’
repo
rt.
132
CIT
YO
FO
MA
HA
.N
EB
RA
SK
A
Com
bini
nrz
Stat
emen
tof
Rev
enue
s.E
xpen
ditu
res,
and
Cha
nges
inFu
ndB
alan
ces
Non
rna(
orC
apita
lPr
ojec
tFu
nds
Yea
ren
ded
Dec
embe
r3
2012
AS
AR
CO
/A
irpo
rtL
ewis
&20
0620
10B
usin
ess
2006
2010
Cla
rkA
dvan
ced
Cit
3C
apit
alE
nvir
onm
enta
lE
nvir
onm
enta
lP
ark
Tra
nsp
ort
atio
nT
ran
sport
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n20
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Bon
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Dev
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Bon
dF
acil
itie
sB
ond
Rev
enue
s:In
vest
men
tio
cottt
e(l
oss)
(14,
714)
—1,
600
——
—
Clta
rges
for
serv
ices
——
-_
——
—
Ren
ts,
roya
lties
,an
dot
her
——
‘‘
——
Con
trib
utio
nsat
tdgr
ants
—2,
564,
842
426,
578
49,1
63—
1,46
4,85
924
8,19
5—
Tot
alre
venu
es(1
4,71
4)
_____________
2.56
6.44
242
6,57
849
.163
—.4
64.8
5924
8.19
5
__
___
__
___
___
Exp
endi
tore
s:C
urre
nt:
Gen
eral
gove
rotti
ent
86.6
66—
Publ
icsa
fety
—28
5.96
0—
.
Tra
nspo
rtat
ioo
serv
ices
—‘—
-—
Cot
ttnsu
oity
deve
lopn
scot
92.2
42—
38.1
10—
Cut
tore
and
park
s(4
.635
)—
.—
25.7
2D
ebt
serv
ice:
Prin
cipa
lIn
tere
st—
.
Deb
tis
suan
ceco
sts
—72
,138
Cap
ital
outla
y:O
tlter
publ
icse
rvic
es—
—65
7,52
320
8,57
8—
——
Publ
icsa
fety
——
—1,
293,
256
——
—37
6,60
8C
ultu
rean
dpa
rks
_91
,228
——
——
—46
,275
Gen
eral
gove
mm
ent
——
——
—
Tra
nspo
rtat
ion
——
——
9,84
2,76
92,
595,
754
—
Com
mun
ityd
evel
opnt
ent
—85
7,10
32,
693,
258
__
__
__
__
__
__
__
__
__
__
__
__
__
__
__
__
__
__
___
__
__
___
__
___
__
__
__
___
__
___
310,
976
Tot
alex
pend
itur
es—
949,
345
4,5t
7,87
t65
7,52
320
8.57
838
,110
9.84
2.76
92,
595,
754
759,
584
Oth
erfi
rtan
eing
sour
ces
(use
s):
i’ra
osfe
rsin
—1,
385,
169
——
903
—
Tra
nsfe
rsou
t—
(902
)—
—-
(585
.660
)—
Sate
ofca
pita
las
sets
—65
8,00
0—
——
‘—
—
Pro
ceed
sfr
omth
eis
suan
ceof
bond
s—
4.81
0.00
035
0,00
02.
040.
000
—8.
966,
000
2.49
4.00
01,
340.
000
Pro
ceed
sfr
ombo
ndpr
emiu
nt—
633.
883
—tl
O.0
0054
0.00
0—
Dis
coun
ton
sate
ofbo
nds
——
(3,9
22)
——
—
Tot
alot
ltcr
fina
ncin
gso
urce
s(u
ses)
—65
8,00
06,
824.
228
350.
000
2.15
0.00
0—
8.96
6,00
02,
449,
243
1,34
0,00
0
Exc
ess
(def
icie
ncy)
res’
eouc
sov
erex
pend
itur
es(1
4,71
4)(2
91.3
45)
4,87
2,79
911
9,05
51.
990.
585
(38.
110)
588,
090
101.
684
580,
416
Futtd
bala
nces
(def
icit)
—be
ginn
ing
1,92
2,63
63,
142.
039
954.
436
230,
029
—64
7.69
23,
224,
023
—55
2,29
1
Fund
bala
nce
(def
icil
)—
endi
ngS
1.90
7,92
22.
850.
694
5,82
7,23
534
9,08
41.
990.
585
609,
582
3.81
2,11
310
1.68
41,
132,
707
Sec
acco
mpa
oyin
gin
depe
nden
tau
dito
rs’
repo
rt.
(Con
tinu
ed)
133
Cll
’YO
FO
MA
HA
,N
EB
RA
SK
A
Com
bini
ngS
tate
men
tof
Rev
enue
s,E
xpen
ditu
res,
and
Cha
nges
inFu
ndB
alan
ces
Non
maj
orC
apit
alP
roje
ctFu
nds
Yea
ren
ded
Dec
embe
r3.2
012
Rev
enue
s:Ii
tves
tntc
ntin
com
e(l
oss)
Cha
rges
for
serv
ices
Ren
ts,
roya
ltie
s,an
dot
her
Co
ntrib
utio
ns
and
grants
__
__
__
__
__
__
_________
_____________________
_____________________
_____________________
_____________________
__
____
____
____
____
___
____
____
____
____
____
__
__
__
__
__
__
__
__
__
__
__
__
__
___
___
___
__
___
__
_
Tot
alre
venu
es
___
__
__
__
__
__
__
__
___
__
___
___
___
__
_
Exp
endi
ture
s:C
urre
nt:
Gen
eral
Cos
ernm
ent
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See
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depe
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tau
dito
rs’
repo
rt.
35
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Advanced Acquisition Fund
Year ended December 31, 2012
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:$
______ ______
Total revenues
Expenditures:Community development 92,242 (92,242)Capital outlay 1,900,000 1,900,000 857,103 1,042,897
Total expenditures 1,900,000 1,900,000 949,345 950,655
Deficiency of revenues underexpenditures (1,900,000) (1,900,000) (949,345) 950,655
Other financing sources:Sale of capital assets 658,000 658,000
Total other financing sources — — 658,000 658,000
Net change in fund balance (1,900,000) (1,900,000) (291,345) 1,608,655
Fund balances — beginning 2,693,657 2,693,657 3,142,039 448,382
Fund balances — ending $ 793,657 793,657 2,850,694 2,057,037
See accompanying independent auditors’ report.
136
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule —2010 Enviromnental Bond Fund
Year ended December 31, 2012
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:Contributions and grants $ — — 49,163 49,163
Total expenditures 3,077,000 3,077,000 2,915,271 161,729
Deficiency of revenues underexpenditures (3,077,000) (3,077,000) (1,523,035) 1,553,965
Other financing sources:Proceeds from issuance of bonds 3,077,000 3,077,000 4,360,000 1,283,000Proceeds from bond premium — — 310,000 310,000
Total other financing sources 3,077,000 3,077,000 4,670,000 1,593,000
Net change in fund balance — — 3,146,965 3,146,965
Fund balances — beginning — — (747,423) (747,423)
Fund balances — ending $ — — 2,399,542 2,399,542
See accompanying independent auditors’ report.
145
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Downtown Stadium and Companion Projects Fund
Year ended December 31, 2012
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues;Charges for services $ 1,127,441 1,127,441Contributions and grants 7,000,000 7,000,000 7,000,000 —
Total revenues 7,000,000 7,000,000 8,127,441 1,127,441
Expenditures:Debt Service:
Principal 34,366 (34,366)Interest 93,054 (93,054)
Capital outlay 1,768,688 (1,768,688)
Total expenditures 1,896,108 (1,896,108)
Excess (deficiency) of revenuesover (under) expenditures 7,000,000 7,000,000 6,231,333 (768,667)
Other financing sources (uses):Proceeds from issuance of bonds 1,094,862 1,094,862
Total other financing sources (uses) — — 1,094,862 1,094,862
Net change in fund balance 7,000,000 7,000,000 7,326,195 326,195
Fund balances—beginning (18,000,000) (18,000,000) (17,457,117) 542,883
Fund balances — ending $ (11,000,000) (11,000,000) (10,130,922) 869,078
See accompanying independent auditors’ report.
146
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Pedestrian Trail Bridge-Joint Use
Year ended December., 1, 2012 -
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:Contributions and grants $ 200,000 200,000 100,000 (100,000)
Total revenues 200,000 200,000 100,000 (100,000)
Expenditures:Culture and parks 86,873 86,873 228,148 (141,275)Capital outlay —
______________
140,084 (140,084)
Total expenditures 86,873 86,873 368,232 (281,359)
Deficiency of revenues underexpenditures 113,127 113,127 (268,232) (381,359)
Other financing sources:Transfers in 100,000 100,000
Total other financing sources — — 100,000 100,000
Net change in fund balance 113,127 113,127 (168,232) (281,359)
Fund balances—beginning 309,548 309,548 355,661 46,113
Fund balances — ending S 422,675 422,675 187,429 (235,246)
See accompanying independent auditors’ report.
147
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Special Assessment Fuids
Year ended December 31, 2012
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:Investment income $ 144,000 144,000 311,160 167,160Charges for services 770,000 770,000 163,025 (606,975)Rents and royalties — — 193 193Contributions and grants — — 1,306,986 1,306,986
Total revenues 914,000 914,000 1,781,364 867,364
Expenditures:General government 30,000 30,000 27,976 2,024Transportation services 885.000 885,000 70,000 815,000Culture and parks 25,100 25,100 25,100Debt service:
Principal 536,000 (536,000)Interest 10,883 (10,883)
Capital outlay 1,564,289 (1,564,289)
Total expenditures 940,100 940,100 2,234,248 (1,294,148)
Deficiency of revenues underexpenditures (26,100) (26,100) (452,884) (426,784)
Other financing sources (uses):Transfers in 228,000 228,000 (228,000)Transfers Out (228,000) (228,000) 228,000Proceeds from issuance of bonds — — 536,000 536,000
Total other financing sources — — 536,000 536,000
Net change in fund balance (26,100) (26,100) 83,116 109,216
Fund balances—beginning 98,618 98,618 682,963 584,345
Fund balances — ending S 72,518 72,518 766,079 693,561
See accompanying independent auditors’ report.
148
NONMAJOR PERMANENT FUNDS
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CITY OF OMAHA, NEBRASKA
Nonmajor Governmental Funds :Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, notprincipal, may be used for purposes that support the reporting government’s programs.
Western Heritage Special Revenue Fund — To account for a Permanent Endowment fund established inaccordance with City Ordinance #33472 passed January 31, 1995, whereby the City will contribute moneystoward the renovation and construction at the Western Heritage Museum. These funds were realized from thesale of a portion of the Byron Reed coin and manuscript collection held in October 1996.
Endowment for Library Fund — To account for funds that are donated to the Public Library from outsidesources. This is a permanent fund for endowment gifts. Tn 1974, Don L. Hayes bequeathed to the Public Librarya permanent memorial endowment with interest to be used to purchase books in honor of his parents. In 1979,Ralph Anderson bequeathed an endowment to the library with interest to be used to benefit the library. Annualinterest from these accounts is used to enhance the library’s collections and operations.
149
CITY OF OMAHA, NEBRASKA
Combining Balance Sheet
Nonmaj or Permanent Funds
December 31, 2012
TotalWestern Endowment Permanent
Assets Heritage for Library Funds
Cash and pooled investments $ 93,467 3,892 97,359Investments 3,005,904 59,171 3,065,075Accrued interest 16,700 193 16,893
Total assets $ 3,116,071 63,256 3,179,327
Liabilities and Fund Balances
Liabilities:Accounts payable and other current liabilities $
________________
Total liabilities
Fund balances:Nonspendable 2,717,918 57,471 2,775,389Committed 398,153 5,785 403,938
Total fund balance 3,1 16,071 63,256 3,179,327
Total liabilities and fund balance $ 3,116,071 63,256 3,179,327
See accompanying independent auditors’ report.
150
CITY OF OMAHA, NEBRASKA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmaj or Permanent Funds
Year ended December 31, 2012
Revenues:Investment income
Total revenues
Expenditures:Current:
Culture and parks
Total expenditures
Other financing sources (uses):Transfers inTransfers out
Total other financing sources
Net change in fund balance
Beginning fund balance
Ending fund balance
WesternHeritage
S 82,509
82,509
73,750
73,750
8,759
3,107,312
S 3,116,071
Endowmentfor Library
607
607
607
62,649
63,256
TotalPermanent
Funds
83,116
83,116
73,750
73,750
9,366
3,169,961
3,179,327
See accompanying independent auditors’ report.
151
CITY OF OMAHA, NEBRASKA
Budgetary Comparison Schedule — Western Heritage Permanent Fund
Year ended December 31, 2012
(Unaudited)
Variance withfinal budget
Budgeted amounts positiveOriginal Final Actual (negative)
Revenues:Investment income $ 87,000 87,000 82,509 (4,491)
Total revenues 87,000 87,000 82,509 (4,491)
Expenditures:Culture and parks 87,000 87,000 73,750 13,250
Total expenditures 87,000 87,000 73,750 13,250
Deficiency of revenuesunder expenditures — — 8,759 8,759
Net change in fund balance — — 8,759 8,759
Fund balances — beginning 31,141,918 31,141,918 3,107,312 (28,034,606)
Fund balances—ending $ 31,141,918 31,141,918 3,116,071 (28,025,847)
See accompanying independent auditors’ report.
152
ENTERPRISE FUNDS
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CITY OF OMAHA, NEBRASKA
Enterprise Funds
The Enterprise Funds account for operations that are financed and operated in a manner similar to privatebusiness enterprises: (a) where the intent of the governing body is that the costs of providing goods or services tothe general public on a continuing basis is financed or recovered primarily through user charges or (b) where thegoverning body has decided that periodic determination of revenues earned, expenses incurred, andJor netincome is appropriate for capital maintenance, public policy, management control, accountability, or otherpurposes.
City Wide Sports Revenue Fund — To account for the moneys received from adult leagues operated by theParks, Recreation, and Public Property Department. Currently, leagues are formed for football, volleyball, andbasketball competition. The fund is self-supported through registration fees charged to participants.
Marinas Fund — To account for activities at the N.P. Dodge Park Marina, the Riverfront Marina, andCunningham Lake Marina. This Enterprise Fund accounts for receipts generated through the leasing of boat stallsat the N.P. Dodge Park Marina.
Dodge Park Marina Dredge Fund — To account for the accumulated reserves for the replacement of the RiverDredge. The Dodge Park Marina Dredge Fund is a special revenue fund created to take care of any contingencies(repairs, etc.) that occur with the dredge. Each year, $4,000 is transferred from the Dodge Park Marina fund tothis fund.
Tennis Operations Fund — To account for the Tennis operations at the City of Omaha Tennis courts. Thisenterprise fund provides for the operation of one 8-court indoor tennis center, one 15-court tennis center, andnumerous neighborhood tennis courts located throughout the City.
Golf Operations Fund — To account for the Golf operations and concessions at the City of Omaha Golf Courses.This enterprise fund was created in 1993 to form a self-supporting enterprise fund for the operations at allMunicipal Golf Courses, which includes maintenance of the City’s four 18-hole golf courses and five 9-hole golfcourses and to fund necessary capital improvements.
Air Quality Fund — To account for the Title V federal funding and the applicable City ordinance authorizedfees. These funds provide the City the necessary resources to monitor the air quality and enforce the health andenvironmental laws relating to clean air.
Compost Fund — To account for the contract between the City of Omaha and the Quality Control Division of theCity of Omaha to operate the compost facility located adjacent to the Papillion Creek Wastewater TreatmentPlant.
Printing Services and Graphics Fund — To account for the charges for printing services for the various Cityand Douglas County departments, agencies, and grant fund projects.
Riverfront Plaza and Marina Fund — To account for the activity at Lewis and Clark landing on the City ofOmaha’s Missouri Riverfront. The plaza is available for private groups to rent.
153
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aipt
nett
t(0
9,95
11,
696,
651
—96
9.40
976
,471
—2,
852,
482
Les
sac
enat
alat
edde
prec
iati
tttt
__
__
__
__
__
__
__
(1,4
51,1
)7))
)—
11,6
5)1.
775)
(3,4
90,8
27)
—(5
31,6
98)
176.
471)
—(7
.20)
1,84
))
Tot
alca
pita
las
sets
(net
ofac
rntn
ttla
tecl
depr
ecia
tion
)—
(.32
9,72
8—
1,99
8,15
41.
1(4
,178
__
__
__
__
__
__
__
437,
7)1
——
4,87
9,77
)
Tot
alno
ncur
rent
asse
ts—
(.32
9.72
8—
1,99
8,15
41,
114,
178
—44
)1,1
40—
—4,
882.
20))
Tot
alas
sets
S49
.8)1
62,
493,
259
4)1,
586
2.02
9,73
2(.
157,
914
335,
32))
44)1
,530
(79,
839
(28,
427
6,85
5,4(
3
Lia
lsit
itie
san
dN
etP
osit
ion
Ctt
rren
lli
ahih
lics
:A
ccot
ttsts
paya
ble
and
othe
rS
1,51
274
,020
—((
.9)1
283
,21(
1((
(.68
77,
678
59.3
63—
248.
363
Acc
rued
inte
rest
paya
ble
——
——
—3.
642
——
3.64
2U
near
ned
reve
ttac
46.6
37—
——
——
—46
,637
Cnr
rett
tin
stal
lttt
ents
ofio
ttp.
tets
nde
bt—
——
——
—25
,000
—25
,800
Wor
kers
’co
tnpe
tssa
tion
and
Itea
ltlt
care
clai
ms
—8.
734
—1(
1.19
012
3.73
229
,1(3
(8,9
248,
734
199.
427
Dtte
toot
lter
ftnt
ds—
——
—74
6,0)
8)99
,110
0—
845.
1(01
)C
otnp
etts
ated
abse
itce
s—
76._.
(.59
29.
1(42
3,29
))2.
949
404
—(7
,353
Tot
alcu
rren
t(i
abih
ties
48,1
4982
,830
-23
.684
961,
975
43,0
9015
7,19
368
,501
____
____
____
__
1,38
5,42
2
Non
curr
ent
liab
ilit
ies:
Lnn
g-te
rtn
debt
excl
udin
gcn
rret
ttin
stal
lnte
nts
——
——
321,
701
—32
1.7(
11P
ensi
onob
ligat
iots
—87
,143
—65
.371
832,
9)19
308,
680
209,
0(6
47,7
30(.
550,
849
Pon
tret
iren
sent
bene
fit
obli
gati
on—
77.1
2157
,853
737,
12))
273,
180
(84,
978
42.2
41(.
372.
493
Wor
kers
’co
mpe
nsat
ints
and
(tea
ltlt
care
clai
nts
—(5
,959
—(8
,6(9
226,
092
53,1
9834
,579
15,9
5936
4,4)
16C
otnp
cnsa
ted
abse
ttce
s—
1,42
7—
30.2
62(7
1.8(
862
,523
56,0
347,
656
__
__
__
__
__
__
__
329,
720
Tot
alIt
onca
rren
tli
abil
itie
s
__
__
__
__
__
__
__
181,
650
—(7
2(0
5(.
967.
939
697,
581
806.
308
((3
.58
6—
3,93
9,16
9
Tot
alli
abil
itie
s48
.149
264,
480
—(9
5,78
92,
929,
9(4
740.
671
963,
5(11
(82,
087
____
____
____
__
5,32
4.59
1
Net
posi
tion
:
Net
inve
stm
ent
inca
pita
las
sets
—1,
329,
728
—1,
998,
154
1,11
4.17
8—
91,
1(10
——
4,53
3,1(
70U
nres
tric
ted
(.65
789
9,85
140
,586
((64
,211
)(2
,886
,178
)(4
05,3
51)
(6(3
,981
)(2
,248
)12
8,42
7(3
.082
,248
)
Tot
alte
lpo
siti
on(.
657
2.22
8.77
94)
1,58
6(.
833,
943
(1,7
72,1
8(0)
(4(1
5,35
1)(5
22,9
71)
12,2
48)
128.
427
(.53
0,82
2
Tot
alli
abil
itie
san
dtte
tpo
siti
onS
49,8
062.
493,
259
40,5
862.
029,
732
1.15
7.91
433
5,32
))44
0,53
0(7
9.83
9(2
8,42
76,
855,
4(3
See
acco
tstp
anyi
ngin
depe
ndet
stau
dito
rs’
repo
rt.
154
CIT
YO
FO
MA
hA
,N
EB
RA
SK
A
Cot
nhin
ing
Sta
tem
ent
ofR
even
ues.
Exp
ense
s.an
dC
hang
esin
Net
Pos
itio
n
Non
maj
orE
nter
pris
eFu
nds
Yea
rca
det!
Dec
embe
r31
.20
12
Cit
yW
ide
Pri
nti
ng
Riv
erfr
on
tT
otal
Spo
rts
Dod
geP
ark
Ten
nis
Gol
fS
ervi
ces
Pla
za&
Non
ntaj
orR
even
ueM
arin
asM
arin
aD
redg
eO
per
atio
ns
Op
erat
ion
sA
irQ
uali
tyC
otop
ost
and
Gra
phic
sM
ario
aE
nte
rpri
se
Ope
rati
ngre
venu
es:
Cha
rges
for
serr
ices
S29
2.76
960
3,43
5—
256.
924
3,7(
3.60
675
9,50
(11,
072.
270
499,
711
46.7
257.
244,
940
Tot
alttp
etst
ting
reve
nues
292.
769
683.
435
—25
6.92
43.
7(3,
606
759.
50))
.072
.27)
)49
9.71
146
.725
7,24
4.94
0
Ope
rati
ngex
pens
es:
Pers
otta
lse
rvic
es12
0.96
617
5.74
2—
(94,
31(7
2,16
1.39
940
0,11
5430
)1,7
628)
1,35
6—
3,62
1.50
6O
tttsi
dese
rvic
es20
1.15
330
,155
—94
,603
7(0,
993
25,0
00(0
3.50
031
,379
2(1,
405
(.21
7.27
6O
pera
tion
attd
nsai
tttet
tattc
e(.
743
1911
,115
—31
.933
7115
.731
(54,
060
265,
101
250,
466
2)1,
437
1,61
9,67
4C
ost
ofsa
les
and
serv
ice
2475
,731
——
201.
030
——
—27
6,70
5D
epre
ciat
iott
attd
atrs
ortiz
tttio
ts—
1(15
,661
—(6
.324
142.
406
—70
,073
__
__
__
___
__
___
—44
2,46
4
Tot
alop
erat
ing
expe
nses
323.
086
577,
404
—43
7,16
73,
921.
559
667.
2I))
747.
516
462,
20)
40,8
427,
177,
705
Ope
rati
ngin
cotn
e(l
oss)
(31.
117)
26.0
3)—
(10(
1.24
3)(2
07,9
53)
92.2
9!)
324,
754
37.5
105.
883
67,1
55
Not
tope
rati
ttg
res’
etnt
es)e
xpet
tses
):In
tere
stex
pens
e—
——
——
—((
5,50
7)—
—((
5.58
7)
Tot
alno
nope
rali
ngre
veut
tes
(exp
euse
s)—
—-—
—((
5,50
7)—
-—
((5,
507)
Incc
snse
(los
s)be
fore
ccst
ttrih
ntio
ttsai
tdtr
ansf
ers
(31.
117)
26,0
3)—
(101
1.24
3)(2
07,9
53(
92.2
903)
19,1
6737
,5(0
5,80
351
,568
Cap
ital
co,tt
ribt
ttio
ns—
(1)1
1,1)
00—
——
——
——
(00.
000
Cha
ttge
itsre
tpo
siti
ott
(31,
117)
(26,
031
—(1
80.2
43)
(207
.953
)92
,291
)30
9.16
737
,510
5,88
315
1,56
8
Tot
alne
tpo
siti
on(d
e0ci
t(be
gint
ting
32,7
742,
102,
748
411,
586
2.01
4.18
6((
.564
,047
)(4
97.6
4!)
(832
,130
)(3
9,75
8)12
2,54
41,
379,
254
Tot
alne
tpo
siti
on(d
eOci
t)—
endi
ngS
(.65
72,
228,
779
40,5
86(.
833,
943
((.7
72.0
00)
(405
,351
)(5
22,9
71)
(2.2
48)
128,
427
1,53
0,82
2
See
acco
mpa
ttyi
ngin
depe
nden
tat
tdit
ors’
repo
rt.
(55
See
acco
mpa
nyin
gin
depe
nden
tau
dito
rs’
repo
rt.
CIT
YO
FO
MA
HA
.N
EB
RA
SK
A
Com
bini
ngS
tate
men
tof
Cas
ltFl
osvs
Non
otaj
orE
nter
pris
eFu
nds
Yea
ren
ded
Dec
embe
r3
2012
Cit
yW
ide
Pri
nti
ng
Riv
erfr
ont
Tota
l
Spo
rts
Dod
geP
ark
Ten
nis
Gol
fS
ervi
ces
Pla
za&
Non
nta
jor
Rev
enue
Mari
nas
Mar
ina
Dre
dge
Op
erat
ion
sO
per
atio
ns
Air
Qna
lity
Com
post
and
Gra
phic
sM
arin
aE
nte
rpri
se
Cas
hfl
osvs
into
oper
attn
gac
tivi
ties
:R
ecei
pts
from
cost
o,st
ers
S33
9.40
65t
t3.4
3525
6,92
43,
797.
1171
174
2.1,
1(0
t,07a
,4tt
S40
5.1)
1)9
49.6
767.
253.
333
Pas
s,en
isto
supp
lter
s(2
03.2
43)
(224
,779
11
23
.27
0)
I.5
86.4
59)
1211
,622
)(3
64.9
37)
(237
,574
)(l
t),a
42)
(2,9
9t,7
26)
Pay
men
tsto
empl
oyee
s((
20,9
66)
16
9,9
57
)(1
61,3
58)
(1,9
37,3
75)
(511
2.12
3)(3
30(6
7)
(164
,022
1—
(3,3
93,9
60)
Net
casim
prov
ided
by(t
tsed
in)
oper
atin
gac
tivi
ties
I5.1
97((
(0,6
99(2
7,70
4)27
4,1(
3629
,063
375,
30t
03,4
(30,
034
067,
63’t
Cas
htlo
svs
frot
nno
ttca
pita
lfi
ttan
eitt
gac
tivi
ties
:A
dvan
ces
frot
tt(t
o)ot
her
land
s—
(072
.101
)—
(023
)(2
10,1
141
(3.2
25)
(334
,2t7
)(4
90)
—(1
,421
,050
)
Net
casl
tpr
ovid
edby
)tts
editt
)no
neap
ital
oitta
oeitt
gac
tivi
ties
—(0
72,1
St)
—10
23)
(21(
1,11
4)(3
,225
)(3
34.2
17)
(490
)—
(1,4
21,0
50)
Cas
hfl
osvs
from
capi
tal
and
rela
ted
titta
mtc
ittg
acti
viti
es:
Cap
ital
expe
udit
ttre
s(6
3,50
5)—
—.—
163.
585)
Cap
ital
cont
ribu
ted
—(0
0,00
0—
——
((01
,000
Pay
men
tson
long
.tenm
tde
bt—
...
——
—(2
5,00
0)—
_—
(25.
01(0
)
Inte
rest
paid
——
—..—
——
(15,
694)
——
(15,
694)
Net
cash
prov
ided
by(t
tset
lin
)ca
pita
lan
dre
late
d(i
aane
ittg
acti
viti
es—
00,0
00.—
-—
(63.
505)
—(4
0,69
4)—
_—
(4.2
79)
Caslm
floss
’sfro
m,,
inve
stin
gac
tivity
:In
tere
stre
ceiv
ed—
——
—
Net
cash
prov
ided
byin
vest
ittg
acti
vity
——
——
—
Net
nter
ease
(dec
reas
e)itt
cash
and
cash
eqai
s’al
ents
(5,1
97(6
67.4
02)
(20,
527)
337
26.6
3039
002
,923
0,03
4(5
57,6
90)
Caslm
and
east
teq
aiva
lent
s,be
ginn
ina
of
year
34,6
1)9
855.0
030
.506
60.1
05—
261.
175
02.2
(41)
6.57
11,
450,
273
Caslm
attd
casl
teq
ttis’
alen
ts.
end
ofye
arS
49006
191,
531
4)1,
506
31.5
7833
720
7,01
339
(116
5.13
712
5,40
589
2.50
3
Rec
onci
liat
iott
ofop
erat
ittg
itteo
me
(los
s)to
net
etts
hpr
ttvi
ded
by(u
sed
itt)
op
crat
ing
acti
viti
es:
Ope
rati
ngin
cotn
e(l
oss)
S(3
1.11
7)26
,031
——
(10(
1,24
3)(2
07,9
53)
92,2
911
324,
754
37.5
11)
5,00
367
,155
Adj
ustm
ents
tore
conc
ile
oper
atir
tgin
com
e(l
oss)
tomte
mea
sls
prov
ided
byop
erat
ittg
acti
viti
es:
Dep
reci
atio
nan
dam
orti
zati
on—
1(15
.661
I(6,
324
142,
406
—70
.073
—44
2,46
4C
ash
floss
’sin
tpac
tett
bycl
,ang
esin
:R
ecei
vabl
es—
(11(
0,00
0)—
-—
94,2
64(1
6.89
2)6,
135
(14,
702)
2.95
1(2
8,24
4)In
sen
tori
es—
(8,
505)
.—
——
(18,
505)
Acc
oum
tts
paya
ble
and
otl
ter
46,3
1471
,222
3.26
649
,800
(31.
466)
3.67
844
,271
—‘-
107,
005
Pre
paid
s—
—.
——
(10,
000)
—66
—(9
,934
)C
laim
spa
yabl
e—
I1,6
72)
7,30
82.
154
(29,
336)
10,8
53)
11,1
94(0
,827
)P
ensi
nit
obli
gati
on4,
540
—(3
,930
I7,
367
111,
230
(13.
552)
3,11
47—
—35
,570
Pos
lrel
iret
nenl
bene
fit
obli
gali
on2.
9119
—11
,633
94,2
035,
029
(15,
000)
2,09
310
11,0
67
Net
cash
prov
ided
by)tm
sed
in)
oper
atit
tnac
tivi
ties
515
,197
100,
699
—(2
7,70
4)27
43(3
629
.863
375.
30)
83,4
)38,
834
067,
639
156
PENSION TRUST FUNDS
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CITY OF OMAHA, NEBRASKA
Pension Trust Funds IiI1IThe Pension Trust Funds are used to account for assets held by the City in a trustee capacity.
Civilian Retirement Fund — To account for resources that are held in trust for the members and beneficiaries ofthe full-time Civilian employees of the City of Omaha.
Police/Fire Retirement Reserve Fund — To account for resources that are held in trust for the members andbeneficiaries of the Police and Fire Sworn full-time employees of the City of Omaha.
Change in net position 7,798,304 49,370,748 57,169,052
Net position held in trust for pension benefits,beginning of year 215,434,784 440,429,391 655,864,175
Net position held in trust for pension benefits,end of year $ 223,233,088 489,800,139 713,033,227
See accompanying independent auditors’ report.
159
This page intentionally left blank
AGENCY FUNDS
This page intentionally lefi blank
CITY OF OMAHA, NEBRASKA
Agency Funds
The Agency Funds account for assets held by the City as an agent for various local governments.
RID #126 First National Bank Tower Fund — To account for the tax increment financing revenues collected inregard to the First National Bank Tower TIE project.
RID #132 ConAgra Campus and Parking Fund — To account for the tax increment financing revenuescollected with regard to the ConAgra Campus/Parking TIF project. Property taxes from the increased propertyvalue are collected and used to pay off the TIE debt service requirements.
TIF Bond Debt Service Fund — To account for the tax increment financing revenues collected in regards to theConvention Center Hotel TIF project and account for the debt service reserve required by the issuance of bonds.
TIF Redevelopment Projects Fund — To comply with the Community Development Law of the State ofNebraska (Chapter 18, Article 21, Sections 18-2101) as supplemented and including Sections 18-2147 to18-2153, Reissue Revised Statutes of Nebraska, 1943, as amended. This fiduciary fund is required in accordancewith Section 18-2147 to establish separate funds into which Excess Tax Revenues (provided from special taxprovisions) from the Redevelopment site shall be paid and from which the principal and interest of theRedevelopment Note shall be paid.
RiD #122 First National Child Care Facility - To account for the tax increment financing revenues collected inregards to the First National Bank Day Care TIF project. These funds will be remitted to First National uponrequest.
RID #77 Hammons/Embassy Suites Fund — To account for the tax increment financing revenues collected inregards to the ConAgra Embassy Suites Hotel TIP project.
R/D #87 Aksarben Business and Education Campus Fund — To account for the tax increment financingrevenues collected in regards to the Aksarben Business Park TIP project phase I.
Appeal Bond Deposit Fund — To account for appeal application fees received from citizens whose applicationto build upon or rezone an area of land within the City limits has been denied. Fees are charged for appealapplications to defray the administrative costs incurred by the City Planning Board of Appeals.
Automobile Impounding Deposit Fund — To account for vehicles sold at auction at the police tow lot for morethan the accumulated charges against the vehicle. The amount in excess of the accumulated charges is held inescrow for two years, during which the former owner can claim the money held.
Bid Deposit Fund — To account for moneys collected from vendors based on the required amounts to place a bidwithin the City. Once the bid process is completed and bid is awarded, the bid deposits for those who did notreceive the bid are returned.
Board of Education Liquor Deposit Fund — To account for the collection of fees derived from a wholesalebeer and liquor occupation tax imposed on any person who engages in the manufacture or distribution of beer orliquors, or selling at retail of alcoholic beverages within the City limit. The tax rates are controlled by the State ofNebraska. These license fees are remitted to the Omaha Public Schools Board of Education, through the DouglasCounty Treasurer via wire transfer, on a quarterly basis.
160 (Continued)
CITY OF OMAHA, NEBRASKA
Agency Funds
EL)
Board of Education Tobacco Deposit Fund — To account for license fees from retailers for all tobacco sales,including a separate permit fee for the operation of any machine, which upon insertion of a coin or substituteobject operates or may be operated to dispense tobacco products. These license fees are remitted to the OmahaPublic Schools Board of Education, through the Douglas County Treasurer via wire transfer, on a quarterly basis.
Humane Society Kennel Permits Fund — To account for collection of kennel permits and licenses fromcitizens. Receipts are remitted to the Humane Society on a quarterly basis.
Sales Tax Deposit Fund — To account for all sales tax receipts collected by the City, which are imposed uponsales transactions within the corporate limits of the City in accordance with the Nebraska Tax Revenue Act of1967. The State portion of the sales tax is remitted to the Nebraska Department of Revenue on a monthly basis.
After Hours Dance Deposit Fund — To account for money collected through Section 5-64 of the OmahaMunicipal Code, in which the City requires a $5,000 bond to be posted when a business is granted an after-hoursdance permit.
Board of Education Parking Fines Fund — To account for moneys collected by the City Cashier for parkingviolation fines, which are remitted to the Omaha Public Schools Board of Education through the Douglas CountyTreasurer, via wire transfer, on a quarterly basis.
Park Development Deposits Fund — To account for the receipts received for neighborhood parks to be builtwithin suburban Omaha in the future. In addition, subdivision agreements include provision for deposits to bemade to the fund at appropriate debt to value intervals.
Arterial Street Improvement Program Fund — To collect and distribute funds for the design and constructionof arterial street improvements in the unincorporated portions of Douglas County. These funds are collected onbehalf of Douglas County and are remitted on an as-requested basis to the County.
R/D #102 First National Processing Center — To account for the tax increment financing revenues collected inregards to the First National Bank Data Center TIF project.
Demolition Performance Bond Fund — To hold moneys where citizens post a deposit for the demolition ofdilapidated structures. Before the demolition fee is refunded, a visual inspection is done to insure proper cleanupof the demolition site.
Performance Bond Fund — To hold deposits received in the form of a bond or cashier’s check from vendorswhose bid was accepted to provide services, i.e., professional or construction, to the City of Omaha. Uponsatisfactory completion of the contracted services, the bond deposit is returned to the vendor. If the vendor failsto satisfactorily complete the contracted services, the bonding company is then responsible for finding anothervendor to complete the contracted services.
TJF Projects Contribution Fund — To account for the contributions received from redevelopment projects oncertain locations for the purpose of defraying costs of improvements to those locations. This special revenue fundwas created to record contributions collected on TIE projects in accordance with the existing redevelopmentagreements.
161
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437
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1,92
592
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1,64
0,43
72,
136,
694
237,
803
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—1,
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92,4
7197
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162
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163
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64
CITY OF OMAHA, NEBRASKA
Combining Statement of Changes in Assets and Liabilities
Agency Funds
Year ended December 31, 2012
Balance, Balance,January 1, December31,
RID #126 First National Bank Tower 2012 Additions Deductions 2012
Assets:Cash and pooled investments $ 342,324 2,722,967 2,580,415 484,876
Liabilities:Accounts payable and other liabilities $ 342,324 2,580,415 2,722,967 484,876
RID #132 ConAgra Campus and Parking
Assets:Cash and pooled investments S 1,124,200 790,737 1,490,500 424,437Due from other funds — 1,216,000 — 1,216,000
$ 1,124,200 2,006,737 1,490,500 1,640,437
Liabilities:Accounts payable and other liabilities $ 1,124,200 1,000 517,237 1,640,437
TIF Bond Debt Service
Assets:Cash and pooled investments $ 660,194 2,869,620 2,590,868 938,946Investments 1,196,735 1,199,688 1,200,000 1,196,423Accrued interest — 1,325 — 1,325
$ 1,856,929 4,070,633 3,790,868 2,136,694
Liabilities:Accounts payable and other liabilities $ 1,856,929 1,500 281,265 2,136,694
TIF Redevelopment Projects
Assets:Cash and pooled investments S 709,804 37,085,274 37,557,275 237,803
Liabilities:Accounts payable and other liabilities $ 709,804 18,561,113 18,089,112 237,803
First National Child Care Facility
Assets:Cash and pooled investments S 146,801 145,801 1,000
Liabilities:Accounts payable and other liabilities $ — 77,901 78,901 1,000
RID #77 Hammons/Enibassy Suites
Assets:Cash and pooled investments $ — 638,671 638,671
______________
Liabilities:Accounts payable and other liabilities $ — — — —
R/D #87 Aksarben Bus & Education Campus
Assets:Cash and pooled investments S — 677 677
Liabilities:Accounts payable and other liabilities S — 338 338 —
Appeal Bond Deposit
Assets:Cash and pooled investments $ 1,125 850 50 1,925
Liabilities:Accounts payable and other liabilities $ 1,125 50 850 1,925
165 (Continued)
CITY OF OMAHA, NEBRASKA
Combining Statement of Changes in Assets and Liabilities
Assets:Cash and pooled investments $ 108,522 37,408 53,459 92,471
Liabilities:Accounts payable and other liabilities $ 108,522 53,459 37,408 92,471
Bid Deposit
Assets:Cash and pooled investments $ 86,088 1,395,111 1,383,259 97,940
Liabilities:Accounts payable and other liabilities S 86,088 1,368,480 1,380,332 97,940
Board of Education Liquor Deposit
Assets:Cash and pooled investments S 145,575 548,712 547,600 146,687Accounts receivable 1,200 287,863 289,063 —
$ 146,775 836,575 836,663 146,687
Liabilities:Accounts payable and other liabilities 5 146,775 564,963 564,875 146,687
Board of Education Tobacco Deposit
Assets:Cash and pooled investments $ 9,863 46,712 54,229 2,346Accounts receivable 3,315 17,824 15,371 5,768Due from other funds
_______________
5,300 — 5,300
$ 13,178 69,836 69,600 13,414
Liabilities:Accounts payable and other liabilities 5 13,178 18,294 18,530 13,414
Humane Society Kennel Permits
Assets:Cash and pooled investments $ 72 6,073 6,145Accounts receivable 2,100 2,502 2,502 2,100
S 2,172 8,575 8,647 2,100
Liabilities:Accounts payable and other liabilities 5 2,172 4,272 4,200 2,100
Sales Tax Deposit
Assets:Cash and pooled investments $ 54,736 562,993 617,686 43Accounts receivable 29,355 85,252 88,910 25,697
$ 84,091 648,245 706,596 25,740
Liabilities:Accounts payable and other liabilities $ 84,091 606,207 547,856 25,740
After Hours Dance Deposit
Assets:Cash and pooled investments $ 5,000 — 5,000
Liabilities:Accounts payable and other liabilities $ 5,000 — — 5,000
166 (Continued)
CITY OF OMAHA, NEBRASKA
Combining Statement of Changes in Assets snd Liabilities
Agency Funds
Year ended December 3 2012
Balance, Balance,January 1, December31,
Board of Education Parking Fines 2012 Additions Deductions 2012
Assets:Cash and pooled investments S 67.572 587,617 583.275 71,914
Liabilities:Accounts payable and other liabilities S 67,572 587.833 592,175 71,914
Park Development Deposits
Assets:Cash and pooled investments 5 302,95l 961,091 l,l59,572 104,470
Liabilities:Accounts payable and other liabilities S 302,951 536,690 338,209 104,470
Arterial Street Improvement Program
Assets:Cash and pooled investments S 3,406,185 2,296.535 225,081 5,477,639
Liabilities:Accounts payable and other liabilities S 3.406.185 228.120 2,299,574 5,477,639
RID #102 First National Processing CenterAssets:
Cash and pooled investments S — 902,378 902,378 —
Liabilities:Accounts payable and other liabilities S — 451,189 451,189 —
Demolition Performance Bond
Assets:Cash and pooled investments $ 25,950 132,930 129,880 29,000
Liabilities:Accounts payable and other liabilities S 25.950 29.880 132,930 29,000
Performance Bond
Assets:Cash and pooled investments S 26.000 186.216 132.416 79,800
Liabilities:Accounts payable and oilier liabilities S 26,000 132,416 186,216 79,800
TIF Projects Contribution
Assets:Cash and pooled investments S — 122,000 — 122,000
Liabilities:Accounts payable and other liabilities S — — 122,000 122,000
Total Agency Funds
Assets:Cash and pooled investments S 7.076,161 52.041,373 50.799,237 8.318,297Accounts receivable 35.970 390,939 393.344 33,565Due from other hinds 1.221.300 — 1,221.300Accrued interest
— 1 .325 — I ,325Investments 1,196,735 1,199,688 1,200.000 1,196,423
Total assets S 8,308,866 54.854,625 52,392,581 10.770,9 10
Liabilities:Accounts payable and other liabilities $ 8,308,866 25,904,120 28,366,164 10,770,910
Total liabilities $ 8,308,866 25.904,120 28,366,164 10,770,910
This part of the City’s comprehensive annual financial report presents detailed information as a context forunderstanding what the information in the financial statements, note disclosures, and required supplementaryinformation says about the City’s overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how theCity’s financial performance and well-being have changed over time. 169
Revenue Capacity
These schedules control information to help the reader assess the City’s mostsignificant local revenue source, the property tax. 174
Debt Capacity
These schedules present information to help the reader assess the affordability ofthe City’s current levels of outstanding debt and the City’s ability to issueadditional debt in the future. 181
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the readerunderstand how the environment within which the City’s financial activities takeplace. 187
Operating Information
These schedules contain service and infrastructure data to help the readersunderstand how the information in the City’s financial report relates to theservices the City provides and the activities it performs. 190
Sources: Unless otherwise noted, the information in these pages is derived from the comprehensive financialreports for the relevant year.
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Note: Details regarding the City’s outstanding debt can be found in the notes to the financial statements.
Population data can be found in table 17, Demographic and Economic Statistics.2 Property value information can be found in table 6, Assessed Value and Actual Value of Taxable Property.
See accompanying independent auditors’ report.
182
Schedule 14CITY OF OMAHA, NEBRASKA
Direct and Overlapping Governmental Activities Debt
December31, 2012
Estimated Direct andDebt percentage overlapping
Governmental units outstanding applicable’ debt to the City
Direct:City4 $ 498,105,711 100.00% $ 498,105,711
Overlapping:Douglas County 70,185,000 76.25 53,516,063Omaha-Douglas Public Bldg. Commission2 34,770,000 76.25 26,512,125School District of Omaha2 264,281,949 85.91 227,044,622School District of Ralston3 27,449,600 72.78 19,977,819School District of Millard3 127,665,000 62.65 79,982,123School District of Elkhorn3 141,895,000 49.24 69,869,098School District No. 66 of Douglas County3 23,745,000 100.00 23,745,000
689,991,549 500,646,850
Total $ 1,188,097,260 $ 998,752,561
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries ofthe City. This schedule estimates the portion of the outstanding debt of those overlapping governmentsthat is borne by the residents and business of the City. This process recognizes that,when considering the government’s ability to issue and repay long-term debt, the entire debt burdenborne by the residents and businesses should be taken into account. However, this does not implythat every taxpayer is a resident and, therefore, is responsible for repaying the debt, of each overlappinggovernment.
The percentage of overlapping debt applicable is estimated using taxable assessed property values.Applicable percentages were estimated by determining the portion of the City’s taxable assessed valueand dividing it by the corresponding overlapping government unit’s taxable assessed value.
2 Payable from certain property tax revenues and payments to be made to it by the City of Omahaand Douglas County under certain contractual agreements. Actual rental payments by the City for2012 were $1,583,353. The Act authorizing issuance of bonds by the Omaha-Douglas Public BuildingCommission permits them to levy a tax of $0.17 per $100 of actual valuation on all the taxable propertyin Douglas County. However, although the same Act authorizes the City to levy a tax on all the taxableproperty in the City, except intangible property, of $0.17 per $100 of actual valuation in excess of theCharter limitation described under “AUTHORiTY TO LEVY TAXES,” if and to the extent necessaryto make the City’s payments to the Commission, no such levy has ever been made by the City forsuch purpose.
Residents of the City reside in one of the five school districts and pay taxes only to thatschool district. These numbers represent bonds outstanding as of December 30, 2012.
The debt for the City of Omaha is based on the general obligation debt.
Source: The information regarding the bonds outstanding comes from the State of Nebraska Auditor ofPublic Accounts Web site, reported as of December 30, 2012.
See accompanying independent auditors’ report.
183
2003
2004
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nds.
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Schedule 16CITY OF OMAHA, NEBRASKA
Pledged Revenue Coverage —.
Last Ten Fiscal Years
Direct NetGross operating available Debt service requirements
revenue1 expenses2 revenue Principal Interest Total3 CoverageUtility service
Generally, gross revenues include sewer use fees and interest on investments.Generally, direct operating expenses iuclttde sewage treatment and pumping, sewer maintenance, administrative and general, and industrial Ivaste control.Excluded from direct operating expense are depreciation and amortization.The numbers reflect tlte total annual fiscal year’s debt service requirements on all the outstanding senior and junior revenue bonds and notes.
Net revenuesConvention Center Hotel from Manager
2004 S 5,197,148 1,111,614 4,085,5342005 5,197,148 l,lll,6l4 4,085,5342006 7,046,759 1,766,738 5,280,0212007 8,414,989 1,835,394 6,579,5952008 9,715,892 1,956,436 7,759,4562009 7,065,949 1,863,396 5,202,5532010 8,274,289 1,569,043 6,705,2462011 6,969,693 1,971,401 4,998,2922012 11,248,005 1,506,695 9,741,310Generally, gross revenues include net revenues from manager and interest on investments.
(2) Generally, direct operating expenses include administrative costs, taxes, and insurance.Excluded from direct operating expense are depreciation and anlortization.Hotel opened April I, 2004.
(2) Generally, direct operating expenses include operating and maintenance costs.Excluded from direct operating expense are depreciation and amortization.
Special tax revenue Redevelopmentredevelopment bonds levy
Gross revenues include state cigarette tax, TIF revenues, land sales, and sales tax.Generally, direct operating expenses include ad,ninistrativc costs, taxes, and insurance.
“ Sewer Revenue portio,, of debt service requ,rernent reported under the Sewer Revenue Fund.
Sources: U.S. Census Bureau.2 U.S. Department of Commerce Bureau of Economic Analysis. Personal Income and Per Capita Income
are based on Douglas County figures. The figures for the year 2000 Personal Income and Per CapitaPersonal Income are based on estimates.
Omaha Public Schools, Millard Public Schools, District 66.United States Department of Labor — Bureau of Labor Statistics
The unemployment rates are for the Omaha — Council Bluffs Metropolitan Statistical Area.
See accompanying independent auditors’ report.
187
Schedule 18CITY OF OMAHA, NEBRASKA
Pimcipal Employers
2012Percentageof total City
Employer Employees Rank employment
Offutt Air Force Base 7,500+ 1 1.93%Alegent Health 7,500+ 2 1.93Omaha Public Schools 5,000+ 3 1.93Methodist Health System 5,000+ 4 1.29The Nebraska Medical Center 5,000+ 5 1.29University of Nebraska Medical Center 2,500+ 6 1.29First Data Corp. 2,500+ 7 0.64Union Pacific 2,500+ 8 0.64HyVee Inc. 2,500+ 9 0.64First National Bank of Nebraska 2,500+ 10 0.64West Corp. 2,500+ 11 0.64Walmart Stores 2,500+ 12 0.64ConAgra Foods 2,500+ 13 0.64Mutual of Omaha 2,500+ 14 0.64Creighton University 2,500+ 15 0.64
Total 15.42%
2011Percentageof total City
Employer Employees Rank employment
Alegent Health 7,500± 1 1.99%Offutt Air Force Base 7,500+ 2 1.99Omaha Public Schools 7,500+ 3 1.99The Nebraska Medical Center 5,000± 4 1.33Methodist Health System 5,000+ 5 1.33First Data 5,000+ 6 1.33Union Pacific Corporation 2,500+ 7 0.66University of Nebraska Medical Center 2,500+ 8 0.66West Corp. 2,500+ 9 0.66First National Bank of Omaha 2,500+ 10 0.66Mutual of Omaha 2,500+ 11 0.66Wal-Mart Stores 2,500± 12 0.66City of Omaha 2,500+ 13 0.66ConAgra Foods 2,500+ 14 0.66Creighton University 2,500+ 15 0.66
Total 60,000+ 15.90%
Note: Data not available for employers eight years prior.
Sources: Greater Omaha Economic Development Partnership — Omaha Chamber of Commerce Web site.
See accompanying independent auditors’ report.
188
See
acco
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yG
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mpl
oyee
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Funct
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in
Last
Ten
Fisc
alY
ears
2007
2008
Sch
edul
e19
2009
2010
2011
2012
2003
2004
2005
2006
Func
tion:
Gen
eral
gove
rnm
ent
9417
818
216
5Pu
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safe
ty:
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745
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763
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ual
Bud
gets
.
170
170
176
180
169
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796
765
787
780
790
161
147
143
149
142
142
630
662
667
640
624
633
99
5-—
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1212
1212
249
255
262
262
275
284
106
118
117
120
121
119
211
221
208
221
221
220
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55
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ivil
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190
Sch
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2004
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2006
2007
2008
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2010
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2012
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:P
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arks
**
**
**
192
225
225
231
Swim
min
gpo
ols
(out
door
)17
1616
1616
1614
165
15
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itti
min
gpools
(ind
oor)
22
22
33
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88
88
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88
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mut
tilv
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tcrs
IS15
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1515
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rari
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II12
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er:
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inea
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150,
344
3,38
3,99
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211
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9,31
73,
539,
909
Not
e:T
hese
figu
res
are
base
don
aetu
als
from
the
City
budg
etan
dliv
edas
set
info
rmat
ion.
Sou
rces
:V
ari
ous
City
depa
rtm
ettt
s.
See
acco
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gin
depe
nden
tau
dito
rs’
repo
rt.
191
[This page left blank intentionally.]
APPENDIX C
FORM OF CONTINUING DISCLOSURE UNDERTAKING
Following is the text of Section 11 of the Ordinance. Such Ordinance provisions comprise the
City’s continuing disclosure undertakings pursuant to Securities and Exchange Commission
Rule 15c2-12(b)(5)(i) with respect to the Bonds.
(a) That the City does hereby covenant and agree and enter into a written
undertaking for the benefit of the holders and beneficial owners of the Bonds in accordance with
Section (b)(5)(i) of Securities and Exchange Commission Rule 15c2-12 under the Securities
Exchange Act of 1934, as amended (17 C.F.R. § 240.15c2-12) (the “Rule”). Capitalized terms
used in this Section 11 and not otherwise defined in this Ordinance shall have the meanings
assigned such terms in subsection (d) hereof. It being the intention of the City that there be full
and complete compliance with the Rule, this Section shall be construed in accordance with the
written interpretative guidance and no-action letters published from time to time by the Securities
and Exchange Commission and its staff with respect to the Rule.
(b) The City undertakes to provide the following information as provided in this
Section 11:
(i) Annual Financial Information;
(ii) Audited Financial Statements, if any; and
(iii) Material Event Notices.
(c) (i) The City shall while any Bonds are outstanding provide the Annual
Financial Information on or before the date which is 270 days after the end of each fiscal year of
the City (the “Report Date”) to the MSRB in an electronic format accompanied by identifying
information as prescribed by the MSRB. The City shall include with each submission of Annual
Financial Information a written representation to the effect that the Annual Financial Information
is the Annual Financial Information required by this Section 11 and that it complies with the
applicable requirements of this Section 11 and that it has been provided to the MSRB. If the City
changes its fiscal year, it shall provide written notice of the change of fiscal year to the MSRB. It
shall be sufficient if the City provides to the MSRB any or all of the Annual Financial
Information by specific reference to documents previously provided to the MSRB or filed with
the Securities and Exchange Commission and, if such a document is a final official statement
within the meaning of the Rule, available from the MSRB.
(ii) If not provided as part of the Annual Financial Information, the City
shall provide the Audited Financial Statements when and if available while any Bonds
are outstanding to the MSRB.
(iii) If a Material Event occurs while any Bonds are Outstanding, the City
shall provide a Material Event Notice in a timely manner, not in excess of 10 business
days after the occurrence of the event, to the MSRB. Each Material Event Notice shall be
so captioned and shall prominently state the date, title and CUSIP numbers of the Bonds.
C-2
(iv) The City shall provide in a timely manner to the MSRB notice of any
failure by the City while any Bonds are outstanding to provide to the MSRB Annual
Financial Information on or before the Report Date.
(v) Any filing or report under this Section 11 may be made solely by
transmitting such filing or report to the MSRB in an electronic format accompanied by
identifying information as prescribed by the MSRB.
(d) The following are the definitions of the capitalized terms used in this Section 11
and not otherwise defined in this Ordinance:
(i) “Annual Financial Information” means the financial information or
operating data with respect to the City, provided at least annually, of the type included in
Appendix B of the final official statement with respect to the Bonds. The financial
statements included in the Annual Financial Information shall be prepared in accordance
with generally accepted accounting principles (“GAAP”) for governmental units as
prescribed by the Government Accounting Standards Board (“GASB”). Such financial
statements may, but are not required to be, Audited Financial Statements.
(ii) “Audited Financial Statements” means the City’s annual financial
statements, prepared in accordance with GAAP for governmental units as prescribed by
GASB, which financial statements shall have been audited by such auditor as shall be
then required or permitted by the laws of the State of Nebraska.
(iii) “Material Event” means any of the following events, with respect to the
Bonds:
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults, if material;
(C) Unscheduled draws on debt service reserves reflecting financial
difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial
difficulties;
(E) Substitution of credit or liquidity providers, or their failure to
perform;
(F) Adverse tax opinions, the issuance by the Internal Revenue
Service of proposed or final determinations of taxability, Notices of Proposed
Issue (IRS Form 5701–TEB) or other material notices or determinations with
respect to the tax status of the security, or other material events affecting the tax
status of the Bonds;
(G) Modifications to rights of Bondholders, if material;
(H) Bond calls, if material, and tender offers;
C-3
(I) Defeasances;
(J) Release, substitution or sale of property securing repayment of
the Bonds, if material;
(K) Rating changes;
(L) Bankruptcy, insolvency, receivership or similar event of the
City;
(M) The consummation of a merger, consolidation or acquisition
involving the City or the sale of all or substantially all of the assets of the City
other than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if
material; and
(N) Appointment of a successor or additional paying agent or the
change of name of a paying agent, if material.
(iv) “Material Event Notice” means electronic notice of a Material Event.
(v) “MSRB” means the Municipal Securities Rulemaking Board. On July 1,
2009 the MSRB became the sole repository to which the City must electronically submit
Annual Financial Information, Audited Financial Statements, if any, and Material Event
Notices pursuant to this Section 11. Reference is made to Commission Release No.
34-59062, December 8, 2008 (the “Release”) relating to the MSRB’s Electronic
Municipal Market Access (“EMMA”) system for municipal securities disclosure which
became effective on July 1, 2009. To the extent applicable to this Section 11, the City
shall comply with the Release and with EMMA.
(e) (i) The continuing obligation hereunder of the City to provide Annual
Financial Information, Audited Financial Statements, if any, and Material Event Notices shall
terminate immediately once the Bonds no longer are outstanding. This Section 11, or any
provision hereof, shall be null and void in the event that the City obtains an opinion of nationally
recognized bond counsel to the effect that those portions of the Rule which require this
Section 11, or any such provision, are invalid, have been repealed retroactively or otherwise do
not apply to the Bonds, provided that the City shall have provided notice of such delivery and the
cancellation of this Section 11 to the MSRB.
(ii) This Section 11 may be amended, without the consent of the
Bondholders, but only upon the City obtaining an opinion of nationally recognized bond
counsel to the effect that such amendment, and giving effect thereto, will not adversely
affect the compliance of this Section 11 by the City with the Rule, provided that the City
shall have provided notice of such delivery and of the amendment to the MSRB. Any
such amendment shall satisfy, unless otherwise permitted by the Rule, the following
conditions:
(A) The amendment may only be made in connection with a change
in circumstances that arises from a change in legal requirements, change in law
C-4
or change in the identity, nature or status of the issuer or type of business
conducted;
(B) This Section 11, as amended, would have complied with the
requirements of the Rule at the time of the primary offering, after taking into
account any amendments or interpretations of the Rule, as well as any change in
circumstances; and
(C) The amendment does not materially impair the interests of
Bondholders, as determined either by parties unaffiliated with the City (such as
nationally recognized bond counsel), or by approving vote of Bondholders
pursuant to the terms of this Ordinance at the time of the amendment.
The initial Annual Financial Information after the amendment shall explain, in narrative
form, the reasons for the amendment and the effect of the change, if any, in the type of operating
data or financial information being provided.
(f) Any failure by the City to perform in accordance with this Section 11 shall not
constitute an Event of Default with respect to the Bonds. If the City fails to comply herewith, any
Bondholder or Beneficial Owner may take such actions as may be necessary and appropriate,
including seeking specific performance by court order, to cause the City to comply with its
obligations hereunder.
APPENDIX D
FORM OF OPINION OF BOND COUNSEL
[Letterhead of Kutak Rock LLP]
September __, 2013
City Council of the City
of Omaha, Nebraska
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha, NE 68183
$24,970,000 CITY OF OMAHA, NEBRASKA
Various Purpose and Refunding Bonds Series 2013A
Ladies and Gentlemen:
We have acted as Bond Counsel in connection with the issuance and sale by the City of Omaha
(the “City”), a municipal corporation in the State of Nebraska, of $24,970,000 aggregate principal amount
of Various Purpose and Refunding Bonds, Series 2013A (the “Bonds”). The Bonds are issuable as fully
registered Bonds without coupons dated as of their date of delivery in the denomination of $5,000 or any
integral multiple thereof, bearing interest payable semiannually on May 15 and November 15 of each
year, commencing May 15, 2014, at the rates per annum set forth in the schedule below.
The Bonds mature serially in numerical order on November 15, in each of the years and in the