comprehensive annual financial report - City of Mobile

CITY OF MOBILE, ALABAMA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008

Samuel L. Jones, Mayor Barbara S. Malkove, Executive Director of Finance Patricia A. Aldrich, Comptroller

CITY OF MOBILE, ALABAMA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2008 TABLE OF CONTENTS PAGES I. INTRODUCTORY SECTION Letter of Transmittal GFOA Certificate of Achievement Organization Chart List of Principal Officials

i-v vi vii viii

II. FINANCIAL SECTION Independent Auditor's Report A. MANAGEMENT'S DISCUSSION AND ANALYSIS

1-2 3 - 15

B. BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets Statement of Activities

16 17 - 18

Fund Financial Statements Governmental Fund Financial Statements Balance Sheet Reconciliation of the Balance Sheet Governmental Funds to the Statement of Net Assets Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds to the Statement of Activities

19 - 20 21 22 - 23 24

Proprietary Fund Financial Statements Balance Sheet Statement of Revenues, Expenses, and Changes in Fund Net Assets Statement of Cash Flows

25 - 26 27 - 28 29 - 32

Component Units Financial Statements Statement of Net Assets Statement of Activities Notes to the Financial Statements

33 34 - 35 36 - 78

C. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Notes to Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund

79 - 82 83

D. COMBINING FINANCIAL STATEMENTS Combining Balance Sheet - Non-major Governmental Funds (by fund type) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-major Governmental Funds (by fund type)

84 85

Non-major Special Revenue Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Schedule of Capital Projects by Program and Disposition

86 - 87 88 - 89 90 - 91

Non-major Debt Service Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances

92 - 93 94 - 95

Non-major Capital Projects Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Schedule of Capital Projects by Program and Disposition

96 - 97 98 - 99 100 - 109

Internal Service Funds Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Combining Statement of Cash Flows

110 111 112 - 113

Non-major Enterprise Funds Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Combining Statement of Cash Flows Schedule of Capital Projects by Program and Disposition

114 - 115 116 - 117 118 - 121 122 - 123

E. OTHER SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues - Budget and Actual (Budgetary Basis) Schedule of Other Financing Sources (Uses) - Budget and Actual (Budgetary Basis)

124 - 125 126

Capital Assets Capital Assets Used in the Operation of Governmental Activities Schedule by Source Capital Assets Used in the Operation of Governmental Activities Schedule by Function

127 128 - 129

Long-Term Debt Schedule of Bonds, Warrants, and Notes Payable

130 - 131

III. STATISTICAL SECTION Net Assets by Component Changes in Net Assets Governmental Activities Tax Revenue by Source Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Value of Taxable Sales Sales Tax Rates Direct and Overlapping Governments Principal Sales Taxpayers Assessed Value and Estimated Actual Value of Taxable Property Property Tax Rates Direct and Overlapping Governments Principal Property Taxpayers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Government Debt Legal Debt Margin Information Pledged - Revenue Coverage Demographic and Economic Statistics Principal Employers Full-time Equivalent City Government Employees by Function Operating Indicators by Function Capital Asset Statistics by Function

132 - 133 134 - 139 140 - 141 142 - 143 144 - 145 146 147 - 148 149 150 - 151 152 153 154 - 155 156 - 157 158 159 160 - 161 162 163 - 164 165 166 - 167 168 - 170 171

PROFILE OF THE GOVERNMENT Three hundred-year-old historic Mobile is the county seat of Mobile County and is located in the southwestern section of Alabama, at the head of Mobile Bay, thirty-one miles from the Gulf of Mexico. The city covers a land area of 179 square miles and is part of the second largest metropolitan area in Alabama. The latest figures from the 2000 census indicate the population of Mobile to be 198,915 and the Mobile Metropolitan Statistical Area (MSA) to be 540,258. The City of Mobile, Alabama (the City) was incorporated on January 20, 1814 under the provisions of Act 1911, No. 281, page 330; Code 1940. The City operates under a mayor-council form of government. The City engages in a comprehensive range of municipal services, including public safety, street and drainage, sanitation, health and social services, culture and recreation, public improvements, public transportation, planning and zoning, and general administrative services. This report includes all funds of the City. The City provides a full range of services. These services include police and fire protection; the construction and maintenance of highways, streets and infrastructure; and recreational activities and cultural events. The Mobile Public Library and the Public Parks and Recreation Board (Ladd - Peebles Stadium) have both met the established criteria to be included in the reporting entity as component units, and accordingly are included in the report. The Board of Water and Sewer Commissioners of the City of Mobile, Mobile Housing Board, Mobile Airport Authority, Mobile Board of Health, Mobile Emergency Management, and Mobile Personnel Board are related entities but have not met the established criteria for inclusion in the reporting entity, and accordingly are excluded from this report. Additional information on all of these entities can be found in the notes to the financial statements (See Note 1). Policy making and legislative authority are vested in a seven member city council who are, among other things, responsible for passing local ordinances, adopting budgets, appointing committees and board members of related organizations, and approving the appointment of executive directors of the City. The Mayor is responsible for carrying out the policies and ordinances of the City Council, supervising the operation of the City and appointing executive directors. The Mayor and Council members are elected to four-year terms. All council members are elected from within their respective districts. The annual budget serves as the foundation for the City’s financial planning and control. The Mayor is required to submit a budget proposal to the City Council for most of the City’s departments and funds by August 20 of each fiscal year. The Council, after public comment and evaluation, adopts the balanced budget by the beginning of the fiscal year each October. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City’s governing body. Activities of the general fund are included in the annual appropriated budget. Project-length financial plans are adopted for the capital projects funds. The comparison between the project-length basis budget to actual expenditures for the year is not meaningful and, therefore, is not presented. The level of budgetary control is on the departmental level within an individual fund for legal and administrative control. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Unencumbered amounts lapse at year-end.

ii

As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. ECONOMIC CONDITION In a year of ups and downs in the national economy, there has been stability in the local economy. Austal Shipbuilding held a ground breaking for their $245M 700,000 sq ft Modular Manufacturing Facility. The value of the contracts exceeds $1.6B for this facility on the Riverfront. The Mobile Container Terminal at the Alabama Port Authority is nearing completion. The Mitchell Cancer Center opened its doors as a regional treatment facility expecting more than 25,000 patients during its first year. SSAB Alabama Inc (formerly IPSCO Steel) selected the area for a $460M expansion of their new state-of-the-art heat-treating facility. Mobile continues to have the fastest job growth in Alabama – having created more than 16,000 jobs over the last four years. Unemployment figures for 2008 rose but remained low in the local and state areas. The unemployment rate for the MSA was 5.5%; Alabama, 5.4% and the US was 6.2%. The median household income for the city was $36,619; for the state was $40,232 and for the US was $ 50,233. The number of houses sold fell from 5,440 in 2007 to 4,106 in 2008. In January 2008 Forbes Magazine named Mobile as one of America’s Fastest-Growing Metros. “Mobile is projected to have the greatest change in ‘gross metropolitan product (GMP),’ 34% between 2007-2012, according to research done for us…” The communities listed offer a promise of booming economies for years to come. LONG-TERM FINANCIAL PLANNING In 2008, Moody’s Investor Service and Standard and Poor’s upgraded the City’s bond ratings to A1 and AA-. These upgrades reflected the city’s improved financial position, healthy reserves, a growing economic tax base and positive economic development trends. In addition to the new and expanding industry in and around the city, citizens in two areas west and southwest of Mobile voted to be annexed into the city, increasing anticipated tax revenues by $12 to $16 million in the 2008-2009 fiscal year. The Mobile Regional Airport also came into the city limits adding new tax revenue. With the new city limits came new Police Jurisdiction limits and more revenue sources. MAJOR INITIATIVES The City purchased the Alabama Cruise Terminal from Alabama Real Estate Holdings, Inc. by paying off the loan of $18,680, 918. The City will continue to operate the terminal which serves Carnival Cruise Line's ship Holiday through the management team of Point Clear Holdings but will receive all the income from the venture rather than a share of the revenues. SSAB Alabama Inc. announced the building of a $460M expansion for its state-of-the art heattreating facility. This and other major projects calling Mobile home are in great need of qualified employees. Workers will be needed for the new jobs being offered over the next two years with new industry coming into our city. A workforce strategic planning initiative is a collaborative effort of the City of Mobile, Mobile County, Mobile Works and the Mobile Area Chamber of Commerce. We also welcome new citizens to Mobile to fill these jobs since the unemployment rate is so low here and so many of our citizens are fully employed. iii

RELEVANT FINANCIAL POLICIES Management of the City is responsible for establishing and maintaining internal control designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit. As a recipient of Federal and State awards, the City also is responsible for ensuring that adequate internal control is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control is subject to periodic evaluation by the City. As a part of the City’s single audit, tests are made to determine the adequacy of internal control, including that portion related to Federal awards, as well as to determine that the City’s single audit for the fiscal year ended September 30, 2008 provided no instances of material weaknesses in internal control or significant violations of applicable laws and regulations. Cash Management. Cash temporarily idle during the fiscal year was invested in government securities and bank certificates of deposit. The average yield on investments was approximately 2.0 percent. The City’s investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by Federal Depository Insurance or collateralized. The deposits that were not insured by Federal Depository Insurance were covered under the Security for Alabama Funds Enhancement (SAFE) program. Each of the banks holding the City’s deposits is a certified participant in the SAFE program. Through the SAFE program, all public funds are protected through a collateral pool administered by the Alabama State Treasury. Risk Management. The City is self-insured for claims and judgments, general liability and general automobile liability. These liabilities were estimated to be approximately $416,000 at September 30, 2008 and were accounted for in the Insurance Internal Service Fund. Claim settlement and loss expenses are accrued in this fund for estimated reported claims. Past experience indicates that incurred but not reported claims, in aggregate, do not represent a material amount and, therefore, have not been accrued at year-end. The City is also self-insured for workers’ compensation claims up to $500,000 per accident and employee health insurance claims. An excess coverage insurance policy covers individual claims in excess of $500,000 per accident for workers’ compensation claims. The City has contracted with outside third parties for claims administration. These liabilities were estimated to be approximately $7.14 million at September 30, 2008 and are accounted for in the Governmentwide financial statements. The liability for employee health insurance claims of approximately $1.71 million is reported in the Employee Health Plan Fund (Internal Service Fund).

iv

AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended September 30, 2007. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of the comprehensive annual finance report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department and especially the efforts of Patricia Aldrich, Comptroller. Each member of the department has our sincere appreciation for the contributions made in preparation of this report. My sincere appreciation is also extended to our independent auditors, Banks, Finley, White & Co., for their fine cooperation and technical guidance. In closing, without the leadership and support of the governing body of the City, preparation of this report would not have been possible. Sincerely,

Barbara Malkove Executive Director of Finance

v

vi

vii

CITY OF MOBILE, ALABAMA List of Principal Officials SEPTEMBER 30, 2008 TITLE

NAME

Mayor

Samuel L. Jones

City Council District 1 District 2 District 3 District 4 District 5 District 6 District 7

Fredrick D. Richardson, Jr. William Carroll Clinton L. Johnson John C. Williams Reggie Copeland, Sr. Connie Hudson Gina Gregory

Executive Director of Finance

Barbara S. Malkove

City Clerk

Lisa C. Lambert

viii

MANAGEMENT'S DISCUSSION AND ANALYSIS

MANAGEMENT’S DISCUSSION AND ANALYSIS Our discussion and analysis of the City of Mobile’s financial performance provides an overview of the City’s financial activities for the fiscal year ended September 30, 2008. Please read it in conjunction with the transmittal letter on page i and the City’s financial statements, which begin on page 16. The financial statements are also available on the City’s website at www.cityofmobile.org. FINANCIAL HIGHLIGHTS · ·

·

· ·

The assets of the City exceeded its liabilities at the close of the current fiscal year by $375.9 million. The City’s total net assets decreased $9.4 million, or 2.44 percent, as a result of this year’s operations. While net assets of our governmental activities decreased by $27.2 million, or 9.20 percent, the net assets of our business-type activities increased by $17.81 million, or 19.89 percent. At the close of the fiscal year, the City's governmental funds reported a combined ending fund balance of $123.2 million. The combined governmental funds fund balance increased by $34.3 million from the prior year's ending fund balance. The General Fund closed with a fund balance of $16.9 million, a decrease of $1.3 million since the beginning of the year. The City’s total debt increased by $123.20 million primarily due to the issuance of $193.9 million in general obligation warrants and a capital leases. The debt provided for the purchase of the Alabama Cruise Terminal, other economic opportunities and city improvement. USING THIS ANNUAL REPORT

This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise four components: 1) government-wide financial statements, 2) fund financial statements, 3) notes to the financial statements, and 4) required supplementary information. The Statement of Net Assets and the Statement of Activities, (pages 16 - 18) provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Fund financial statements start on page 19. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the governmentwide statements by providing information about the City’s most significant funds. The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 36. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's general fund budget. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget starting on page 79. 3

REPORTING THE CITY AS A WHOLE The Statement of Net Assets and the Statement of Activities One of the most important questions asked about the City’s finances is “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City’s net assets and changes in them. You can think of the City’s net assets – the difference between assets and liabilities – as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net assets are one indicator of whether its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, such as changes in the City’s tax bases and the condition of the City’s drainage systems and roads, to assess the overall health of the City. In the Statement of Net Assets and the Statement of Activities, we divide the City into three kinds of activities: ·

·

·

Governmental activities – Most of the City’s basic services are reported here, including the police, fire, public works, parks and recreation departments and general administration. Sales, business license, property taxes, franchise fees, and state and federal grants finance most of these activities. Business-type activities – The City charges a fee to customers to help it cover all or most of the cost of certain services provided. Convention center, civic center, the golf and tennis centers and parking facilities are reported here. Component units – The City includes two separate legal entities in its report – Mobile Public Library and The Public Park and Recreation Board (Ladd-Peebles Stadium). Although legally separate, these “component units” are important because the City is financially accountable for them. More comprehensive information about the City’s component units can be found in Note 1. REPORTING THE CITY’S MOST SIGNIFICANT FUNDS

Fund Financial Statements The fund financial statements provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State Law and by bond covenants. However, the City Council established many other funds to help control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money (like grants received from the Federal Transportation Authority and the Department of Justice). Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for non-major funds is provided in the form of combining statements in a later section of this report. The City’s two kinds of funds – governmental and proprietary – use different accounting approaches. 4

·

Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Government fund information helps you determine whether there are more or fewer resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds in a separate reconciliation following each fund financial statement.

·

Proprietary funds – When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Assets and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities – such as the City’s Motor Pool. Because internal service funds primarily serve governmental functions, they are included within the governmental activities of the government-wide financial statements. THE CITY AS A WHOLE - CONDENSED FINANCIAL INFORMATION

As year-to-year financial information is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the changing financial position of the City as a whole. The City’s net assets at fiscal year-end are $375.9 million. This is a $9.4 million decrease over last year’s net assets of $385.3 million. The following table provides a summary of the City’s net assets:

5

City of Mobile, Alabama Summary of Net Assets (dollars are in thousands) Governmental Activities

Business-type Activities

2008

2007

Current and other assets Capital assets Total assets

$ 148,314 490,010 $ 638,324

$ 112,469 427,465 $ 539,934

$

6,347 108,923 $ 115,270

$

Long-term liabilities Other liabilities Total liabilities

$ 326,746 43,055 369,801

$ 202,004 42,209 244,213

$

165,220 101,137 2,166 268,523

268,806 16,179 10,736 295,721

$ 638,324

$ 539,934

$ 115,270

Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets Total liabilities and net assets

2008

Total Primary Government

Amount Change

2007

2008

2007

3,840 94,033 $ 97,873

$ 154,661 598,933 $ 753,594

$ 116,309 521,498 $ 637,807

$

$

1,258 7,080 8,338

$ 327,870 49,860 377,730

$ 203,262 49,289 252,551

$

108,695

92,822

(1,353) 107,342

(3,287) 89,535

273,915 101,137 813 375,865

361,628 16,179 7,449 385,256

$ 753,594

$ 637,807

1,124 6,805 7,929

$ 97,873

$

$

% Change

38,352 77,435 115,787

32.97% 14.85% 18.15%

124,608 571 125,179

61.30% 1.16% 49.57%

(87,713) 84,958 (6,636) (9,391)

(24.26)% 525.11% (89.09)% (2.44)%

115,787

18.15%

The largest portion of the City's net assets (72.9 percent) reflects its investment in capital assets (e.g., land, buildings, infrastructure, equipment, etc.) less any related debt used to acquire those assets that are still outstanding, excluding any unspent proceeds of the debt issued. The City uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net assets (26.91 percent) represents resources that are subject to restrictions as to how they may be used. The remaining balance of unrestricted net assets may be used to meet the City's on-going obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets for governmental activities and the government as a whole. However, the unrestricted net assets for business-type activities show a deficit due to increased expenditures for WAVE Transit fuel and utilities, increased para-transit costs, and increased utilities. Total net assets decreased by $27.2 million for governmental activities and increased $17.8 million for business-type activities.

6

Comparative data is accumulated and presented to assist analysis. The following table provides a summary of the City’s changes in net assets: City of Mobile, Alabama Summary of Changes in Net Assets (dollars are in thousands) Governmental Activities

Program Revenues: Charges for svcs. Operating grants and contributions Capital grants and contributions Grant Revenues: Taxes Investment earnings Other Total revenues Program Expenses: General gov't Economic development Public safety Public works Culture and recreation Finance Nondepartmental Interest on long-term debt Alabama Cruise Civic Centers Convention Center Golf Course Firemedics Parking garage Tennis center Affordable homes program WAVE transit Total expenses Change in net assets before capital contributions and transfers Capital contributions Transfers Change in net assets Net assets, beginning Net assets, ending


2008

2007

2008

$ 51,140

$ 53,346

$ 10,947

5,189

4,611

3,180


2007

Amount Change

% Change

467

0.008%

2008

2007

8,274

$ 62,087

$ 61,620

3,667

190

8,856

4,801

4,055

0.84%

2,850

83

2,464

3,263

5,314

(2,051)

(0.39)%

181,771

175,936

8,941

7,691

190,712

183,627

7,085

0.04%

3,150 5,550 249,980

4,659 5,086 246,488

(164) 59 23,533

34 18,653

2,986 5,609 273,513

4,693 5,086 265,141

(1,707) 523 8,372

(0.36)% 0.10% 0.03%

49,311

25,689

-

-

49,311

25,689

23,622

0.92%

984 96,010 40,955

1,011 79,093 34,964

-

-

984 96,010 40,955

1,011 79,093 34,964

(27) 16,917 5,991

(0.03)% 0.21% 0.17%

22,192 5,274 -

15,418 5,363 53,282

-

-

22,192 5,274 -

15,418 5,363 53,282

6,774 (89) (53,282)

0.44% (0.02)% (1.00)%

36,120 -

9,879 -

$

$

4,134

3,834

36,120 4,134

9,879

26,241

3,834

300

2.66% 100.00% 0.08%

681 (68) 1,160 21 (3)

0.07% (0.05)% 0.26% 0.09% (0.01)%

-

-

9,922 1,303 5,633 265 543

9,241 1,371 4,473 244 546

9,922 1,303 5,633 265 543

9,241 1,371 4,473 244 546

250,846

224,699

16 10,244 32,060

11 9,445 29,165

16 10,244 282,906

11 9,445 253,864

5 799 29,042

0.45% 0.08% 0.11%

21,789

(8,527)

(10,512)

11,277

(20,670)

(1.83)%

(26,333)

4,694 (7,812)

7,812

4,694

(4,694)

26,333

(1.00)% -%

(27,199)

18,671

17,806

(2,700)

15,971

(25,364)

(1.59)%

295,722

277,050

89,535

92,235

385,257

369,285

15,972

0.04%

$ 268,523

$ 295,721

$ 107,341

$ 89,535

$ 375,864

$ 385,256

(9,392)

(0.024)%

(866)

(9,393) (9,393)

$

Graphic presentations of selected data from the summary tables follow to assist in the analysis of the City’s activities for fiscal year 2008.

7

GOVERNMENTAL REVENUES 2008

Charges for service 20.46% Capital grants and contributions 1.27% Investment earnings 1.26% Operating grants and contributions 2.08% Other 2.22% 72.71% Taxes

* Zero Data, Capital contributions Charges for service

Capital grants and contributions

Investment earnings

Operating grants and contributions

Other

Taxes

GOVERNMENTAL REVENUES 2007 Charges for service 21.24%

Capital grants and contributions 1.13%

Investment earnings 1.85%

Capital contributions 1.87%

Operating grants and contributions 1.84%

70.04% Taxes

Other 2.02% Charges for service


Investment earnings

Capital contributions


Other

Taxes

As graphically portrayed above, the City is heavily reliant on taxes to support governmental operations. Taxes provided 72.71% and 70.04% of the City’s total governmental revenues in fiscal years 2008 and 2007, respectively. 8

GOVERNMENTAL FUNCTIONAL EXPENSES 2008

14.40% Interest on long-term debt

General goverment 19.66%

2.10% 8.85% Culture and recreation

Economic development 0.39%

16.33% Public works

Public safety. 38.27%

* Zero Data, Nondepartmental General goverment

Economic development

Culture and recreation

Public safety.

Public works

Interest on long-term debt

GOVERNMENTAL FUNCTIONAL EXPENSES 2007

0.45% Economic development General goverment 11.43%

4.40% Interest on long-term debt 23.71% Nondepartmental

2.39% Finance Public safety. 35.20%

6.86% Culture and recreation 15.56% Public works

General goverment

Public safety.

Public works


Finance

Nondepartmental

Interest on long-term debt


See the following page for discussion of these graphs.

9

Governmental activities Governmental activities decreased the City’s net assets by $27.2 million. The key elements of this decrease are as follows: ·

Charges for services decreased by $2.21 million.

·

Investment earnings decreased by $1.51 million for governmental activities due to lower interest earnings. Funds available for investing increased.

·

The City received capital contributions during the current year of $3.18 million primarily related to construction and renovation costs.

·

Tax revenues increased by $5.84 million during the year primarily due to leveling in area sales primarily due to the first annexation initiative of the West Mobile corridor along Schillinger Road.

Governmental activity expenses increased over the prior year. Of the $250.85 million of governmental activity expenses, public safety was the largest operating cost, at 38.3% of total costs in 2008. For the government-wide full accrual statements, capital outlay expenses were eliminated and capital assets were reported. Business-type activities Business-type activities increased the City’s total net assets by $17.8 million. Business-type activities are shown comparing costs to revenues generated by related services. The golf course, parking garage and cruise terminal business-type activities are self-supporting with user charges and other revenues designed to recover costs. The civic center, convention center, Firemedics, and WAVE Transit, tennis center, and Affordable Homes Program provided services with user charges that did not recover costs in the current year. These activities required subsidization by the City.

10

Fiscal Year

2007

5,000

0

Civic center

Convention center

Golf course

Firemedics

Parking garage

Tennis center

Affordable homes program

Alabama Cruise Terminal

BUSINESS-TYPE ACTIVITIES Revenues vs. Costs


Affordable homes program

Tennis center

Parking garage

Firemedics

Golf course

Convention center

Civic center

Costs

Revenue

Costs Revenue

WAVE Transit

Business Activity

WAVE Transit

10,000

Dollar Value in Thousands

10,000

5,000

0

Dollar Value in Thousands

BUSINESS-TYPE ACTIVITIES Revenues vs. Costs Fiscal Year

2008

Business Activity

11

THE CITY’S FUNDS Governmental Funds The focus of the City's governmental funds is to provide information on short-term inflows, outflows, and balances of expendable resources. Such information is useful in comparing the City’s resources at the end of the year with upcoming financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Governmental funds reported ending fund balances of $123.2 million, of which $106.9 million is unreserved, indicating availability for continuing the City’s service requirements. The reserved fund balances include $8.4 million committed to encumbrances outstanding at year end, $1.8 million committed for long-term receivables, $2.7 million committed to grant administration, $2.5 million committed to economic development, and $884,521 for road and bridge repair and construction. The total ending fund balances of governmental funds show a $34.3 million increase from the prior year. This increase is due primarily to proceeds from the issuance of new warrants during the year for capital improvements and to provide funding for advance refundings on warrants and notes payable. Major Governmental Funds The General Fund is the City’s primary operating fund and the largest source of day-to-day service delivery. The fund balance in the General Fund decreased by approximately $1.3 million due primarily to increases in personnel costs and spending in public safety. See General Fund Budgetary Highlights for more information. The Capital Improvements Fund has a fund balance of $25.08 million which includes a net decrease of $1.5 million. The 2006 G.O. Refunding and Capital Projects fund has a fund balance of $7.99 million. This fund accounts for expenditures related to projects financed by the proceeds of the 2006 G.O. Refunding and Capital Warrants. The fund balance in this fund decreased by $8.6 million as a result of increased capital outlays. Three new funds were established as a result of the issuance of the 2008, 2008B and 2008C G.O. Warrants. The 2008 General Capital Improvements Projects were classified as a major fund. Proprietary Funds The proprietary fund statements share the same focus as the government-wide statements, reporting both short-term and long-term information about financial status.

12

Enterprise Funds The City’s enterprise funds consist of the Alabama Cruise Terminal (a newly established fund for 2008), the Mobile Civic Center, the Municipal Parking Garage, the Azalea City Golf Course, Firemedics, Mobile Convention Center, the Tennis Center, Affordable Homes Program and WAVE Transit. The total net assets of the Enterprise Funds increased by $17.81 million during the current fiscal year. This overall increase is attributable to increased subsidization of the Firemedics, convention center, civic center, and WAVE Transit. Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. The City’s three internal service funds include the Motor Pool Fund, Insurance Fund and Employee Health Fund. The net assets of the funds decreased by $0.86 from the prior year, due to increases in health benefits paid. GENERAL FUND BUDGETARY HIGHLIGHTS During the year there was a $8.63 million increase in appropriations between the original and final amended budget. Following are the main components of the increase: ·

$2.6 million supplemental appropriation to the public safety department for increased costs ($1.1 million in Police, $725,000 in Fire and $783,000 in Mobile Metro Jail).

·

$1.9 million supplemental appropriation in public works function for increased cost in the municipal garage for the cost of fuel and parts. This trend has continued into the 2008-2009 year.

There were no changes to anticipated revenues from the original to the final amended budget. The budget for fiscal year 2008 was approximately $165.91 million. This was an increase of $2.27 million from the prior year amended budget. Total revenues were approximately $10.8 million over budget while expenditures were $14.6 million over budget. This was due to increases in business license revenue, charges for services and fines and forfeitures. Total revenues included more than $6.9 million in unbudgeted grant proceeds from state and federal government sources. Grant expenditures were also unbudgeted so that total expenditures were over budget for approximately the same amount. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets As of September 30, 2008, the City’s investment in capital assets, net of accumulated depreciation for governmental and business-type activities was $490.0 million and $108.9 million, respectively. The overall increase was $77.4 million or 14.8% from 2007 for the City as a whole. See Note 7 for additional information about changes in capital assets during the fiscal year and construction commitments outstanding at the end of the year.

13

Capital Assets Net of Accumulated Depreciation (dollars are in thousands) Governmental Activities 2008 Non-depreciable capital assets: Land $ 24,124 Infrastructure-inprogress 48,749 Construction-inprogress 30,348 Depreciable capital assets, net Buildings 30,332 Improvements 70,541 Vehicular equipment 17,368 Other equipment 14,263 Infrastructure 254,285 Total capital assets, net $ 490,010


2007

2007

2008

2007

Total % Change

$ 10,329

$ 32,698

$ 33,898

(3.5)%

48,749

47,935

1.7%

2008

$ 23,569

$

8,574

47,935

Total

32,663

993

2,265

31,341

34,928

(10.27)%

30,747 65,711 17,877 14,793 194,170

86,261 6,223 4,042 2,830

67,837 6,603 4,069 2,930

116,593 76,764 21,410 17,093 254,285

98,584 72,314 21,946 17,723 194,170

18.3% 6.2% (2.4)% (3.6)% 31.0%

$ 427,465

$ 108,923

$ 94,033

$ 598,933

$ 521,498

14.8%

Long-term Debt As of September 30, 2008 the City had $299 million of long-term debt outstanding, including bonds and warrants payable, notes payable, and obligations under capital leases. See Note 8 for additional information about changes in long-term debt during the fiscal year. The following table summarizes the City's long-term debt: Outstanding Long-term Debt (dollars are in thousands) Governmental Activities

Bonds and warrants Notes payable Obligations under capital leases Total long-term debt

2008

2007

$ 291,060 1,790

$ 186,151 1,980

5,660 $ 298,510

7,625 $ 195,756

Business-type Activities 2008 $

$

2007 $

1,003 1,003

$

1,212 1,212

Total

Total % Change

2008

2007

$ 291,060 1,790

$ 186,151 1,980

56.36% (9.60)%

6,663 $ 299,513

8,837 $ 196,968

(24.60)% 52.06%

14

All of the City's general obligation bond issues are insured and as a result, carry the highest ratings from Standard & Poor's Corporation (AAA) and Moody's Investor Services (Aaa). Subsequent to year end, both S & P and Moody’s increased the City’s underlying rating. Under current State of Alabama statutes, the City's general obligation bonded debt issuances are subject to a legal limitation based on 20 percent of total assessed value of real and personal property. As of September 30, 2008, the City's permissible debt limit exceeded actual debt by approximately $222.6 million. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES With positive economic growth of 2007-2008, the general fund budgeted revenues were expected to increase by approximately $10 million. During the year, an area of western Mobile was annexed into the City. But also, the national economy changed dramatically and sales taxes and other revenue sources have decreased by nearly nine million. This remains true for both the general fund and the capital projects fund. Transfers from other funds were less than last year so that total revenues and transfers in are budgeted at approximately $216 million or about $6 million more than the 2007-2008 budget. By the 2008-2009 year-end, a budget amendment is expected showing the decrease in revenues and some decreases in expenditures, especially fuel and repair costs. For those proprietary funds that have adopted budgets, there have been changes in Motor Pool and the WAVE for increases in fuel cost and repair costs. These costs have decreased so that a budget amendment will be offered to decrease those expenditures. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need any additional financial information, please contact the Executive Director of Finance’s office at 205 Government Street, Suite 530, Mobile, Alabama.

Barbara S. Malkove, CPA, CGFO Executive Director of Finance

15

BASIC FINANCIAL STATEMENTS

CITY OF MOBILE, ALABAMA STATEMENT OF NET ASSETS September 30, 2008 Governmental Activities ASSETS Cash, equity in pooled cash Restricted cash - capital purchases Receivables - net Inventories Internal balances Other assets Non-depreciable capital assets Depreciable capital assets, net Total Assets LIABILITIES Accounts payable and accrued liabilities Unearned revenue Pension contribution Noncurrent liabilities: Due in less than 1 year: Bonds and warrants payable Notes payable Capital lease obligations Compensated absences Insurance claims Landfill postclosure liability Due in more than one year: Bonds and warrants payable Notes payable Capital lease obligations Compensated absences Self-insured liability - legal Insurance claims Landfill postclosure liability Postemployment benefits Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Capital projects Debt service Economic development Grant programs Unrestricted Total net assets Total liabilities and net assets

Primary Government Business-Type Activities

$ 120,650,698

$

561,096 22,875,500 1,862,752 2,353,744 10,000 103,221,111 386,789,064 $ 638,323,965

3,477,851 193,235 (2,353,744) 184,304 9,566,996 99,355,893 $ 115,270,001

$

$

21,481,562 658,520 3,709,271

4,845,466

1,667,087 4,912,447 -

Component Units

Total $ 125,496,164

$

3,621,480

561,096 26,353,351 2,055,987 194,304 112,788,107 486,144,957 $ 753,593,966

$

385,451 1,082,279 5,089,210

$

$

23,148,649 5,570,967 3,709,271

104,391 -

8,890,000 210,000 3,026,871 1,340,247 3,703,306 35,040

150,545 74,700 -

8,890,000 210,000 3,177,416 1,414,947 3,703,306 35,040

82,301 38,005 -

282,169,610 1,580,000 2,633,202 12,889,306 415,874 5,149,553 972,419 20,936,000 369,800,781

852,545 271,479 7,928,803

282,169,610 1,580,000 3,485,747 13,160,785 415,874 5,149,553 972,419 20,936,000 377,729,584

319,167 418,461 962,325

165,220,265

108,695,419

273,915,684

1,009,260

92,579,787 3,338,317 2,482,806 2,735,850 811,939 375,864,382 $ 753,593,966

3,117,625 4,126,885 5,089,210

92,579,787 3,338,317 2,482,806 2,735,850 2,166,159 268,523,184 $ 638,323,965

(1,354,221) 107,341,198 $ 115,270,001

See Accompanying Notes to the Financial Statements.

$

16

CITY OF MOBILE, ALABAMA STATEMENT OF ACTIVITIES For the year ended September 30, 2008

Primary Government: Governmental Activities: General government Economic development Public safety Public works Culture and recreation Finance Interest on long-term debt Total governmental activities Business-Type Activities: Alabama Cruise Terminal Civic Center Convention Center Golf course Firemedics Parking garage Tennis Center Affordable homes program WAVE Transit Total business-type activities Total primary government Component units: Mobile Public Library Public Park and Recreation Bd. Total component units

Program Revenues Operating Grants and Contributions

Capital Grants and Contributions

Expenses

Charges for Services

$ 49,310,958 984,354 96,009,857 40,955,090 22,191,802 5,273,774 36,120,233 250,846,068

$ 9,056,023 41,289,992 277,672 516,332 51,140,019

4,134,371 9,921,621 1,302,813 5,632,700 264,875 542,698 16,295 10,244,202 32,059,575 282,905,643

202,671 2,200,886 3,169,704 1,423,508 2,299,286 475,082 76,195 1,099,053 10,946,385 62,086,404

3,667,452 3,667,452 8,856,536

82,935 82,935 3,263,341

9,416,336 844,631 $ 10,260,967

795,601 750,636 $ 1,546,237

1,331,742 1,331,742

628,831 628,831

$

$

259,454 4,929,630 5,189,084

$

$

2,194,480 674,246 311,680 3,180,406

General Revenues: Taxes: Real and personal property tax Sales tax Gasoline tax Room tax Beer and liquor tax Rental and leasing tax Cigarette stamp tax Other tobacco tax Other tax revenue Grants and contributions not restricted to specific programs Investment earnings Other Transfers Total General Revenues and Transfers Change in Net Assets Net Assets Beginning of Year Net Assets End of Year


17

Net (Expense) Revenue and Changes in Net Assets Governmental Activities

$

Business-Type Activities

(39,995,481) 1,210,126 (49,115,989) (40,365,738) (21,675,470) (5,273,774) (36,120,233) (191,336,559)

$

$

(191,336,559)

Component Units

Totals

202,671 (1,933,485) (6,751,917) 120,695 (3,333,414) 210,207 (466,503) (16,295) (5,394,762) (17,362,803) (17,362,803)

(39,995,481) 1,210,126 (49,115,989) (40,365,738) (21,675,470) (5,273,774) (36,120,233) (191,336,559) 202,671 (1,933,485) (6,751,917) 120,695 (3,333,414) 210,207 (466,503) (16,295) (5,394,762) (17,362,803) (208,699,362) $

$

$

14,938,843 140,470,973 7,775,814 5,239,745 2,027,597 4,430,951 2,188,771 434,014 4,264,065 3,150,149 5,550,454 (26,333,227) 164,138,149 (27,198,410) 295,721,594 268,523,184

$

$

7,354,647 1,586,408 59,405 (164,194) 26,333,227 35,169,493 17,806,690 89,534,508 107,341,198

$

$

14,938,843 147,825,620 7,775,814 6,826,153 2,027,597 4,430,951 2,188,771 434,014 4,264,065 3,209,554 5,386,260 199,307,642 (9,391,720) 385,256,102 375,864,382

$

(6,660,162) (93,995) (6,754,157)

6,738,843 15,139 6,753,982 (175) 4,127,060 4,126,885


18

GOVERNMENTAL FUNDS

Governmental funds are those through which most governmental functions of the City are financed. General Fund Capital Improvements Fund 2006 G.O. Refunding and Capital Projects Fund 2008 General Capital Improvement Projects

CITY OF MOBILE, ALABAMA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2008

General Fund ASSETS Cash, equity in pooled cash and investments Restricted cash - capital purchases Receivables - net Due from other funds Inventories Other assets Total assets LIABILITIES Accounts payable and accrued liabilities Deferred revenue Due to other funds Compensated absences - terminated employees Insurance claims - due and payable Total liabilities FUND BALANCES Reserved for: Encumbrances Long-term notes receivable Grant administration Economic development Road and bridge repair Road and bridge construction Unreserved, reported in: General Fund Capital Projects Funds Debt Service Funds Total fund balances Total liabilities and fund balances

$

$

$

$

Capital Improvements Fund

10,261,996 19,042,930 3,017,923 1,862,751 10,000 34,195,600

$

15,175,902 653,906 648,214 335,062 514,361 17,327,445

$

$

22,755,160 16,390 2,676,786 1,060,000 26,508,336

968,396 109,554 350,000 1,427,950

1,220,923 1,790,000 2,735,850 85,726 -

7,162,786 -

11,035,656 16,868,155 34,195,600

17,917,600 25,080,386 26,508,336


$

19

2006 G. O. Refunding and Capital Projects Funds

$

$

$

2008 General Capital Improvements Projects

9,157,252 9,157,252

$

1,170,143 1,170,143

$

$

-

$

7,987,109 7,987,109 9,157,252

Other Governmental Funds

40,959,889 40,959,889

$

373,253 373,253

$

$

-

$

40,586,636 40,586,636 40,959,889

$

Total Governmental Funds

33,371,358 1,173,267 34,544,625

$

1,110,300 725,965 1,836,265

$

$

116,505,655 16,390 22,892,983 4,077,923 1,862,751 10,000 145,365,702

18,797,994 763,460 1,724,179 335,062 514,361 22,135,056

65,654 2,397,080 352,619 531,902

8,449,363 1,790,000 2,735,850 2,482,806 352,619 531,902

26,022,788 3,338,317 32,708,360 34,544,625

11,035,656 92,514,133 3,338,317 123,230,646 145,365,702

$


20

CITY OF MOBILE, ALABAMA RECONCILIATION OF THE BALANCE SHEET GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS September 30, 2008 Total Fund Balances - Governmental Funds

$ 123,230,646

Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital Assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Governmental capital assets Less accumulated depreciation

$ 610,401,737 (130,664,103)

479,737,634

2,613,208 (342,818)

2,270,390

Other assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Bond costs Less accumulated amortization Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. Accrued interest Pension contribution Bonds and warrants payable Notes payable Capital lease obligations Compensated absences Insurance claims Landfill postclosure liability OPEB liability

(1,953,833) (3,709,271) (291,059,610) (1,790,000) (4,656,983) (13,623,012) (8,338,498) (1,007,459) (20,936,000)

(347,074,666)

Deferred revenue in governmental funds is susceptible to full accrual accounting in the government-wide financial statements. Revenue that is deferred because it is not available to finance current expenditures. Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are reported with governmental activities. Total Net Assets - Governmental Activities


104,940

10,254,240 $ 268,523,184

21

CITY OF MOBILE, ALABAMA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended September 30, 2008 Capital Improvements Fund

General Fund Revenues Taxes Licenses and Permits Intergovernmental Charges for Services Fines and forfeitures State and federal assistance Assessments Interest Other Total revenues

$

118,734,721 33,820,585 539,578 9,850,027 4,968,281 6,866,842 1,208,934 631,579 176,620,547

$

47,261,265 1,943 11,285 2,688,836 49,963,329

Expenditures Current: General government Economic development Public safety Public works Culture and recreation Finance Nondepartmental Capital Outlay Debt Service: Principal Interest and fees Total expenditures

16,774,235 903,138 84,463,292 36,655,722 13,191,508 4,597,974 40,379,533 -

10,610,713

196,965,402

3,378,135 151,586 14,140,434

Excess (deficiency) of revenues over expenditures

(20,344,855)

35,822,895

Other Financing Sources (Uses) Transfers in Transfers out Insurance recoveries Capital-related debt issued Proceeds from disposal of assets Total other financing sources (uses)

34,719,008 (16,155,109) 448,534 2,233 19,014,666

(37,320,914) (37,320,914)

(1,330,189)

(1,498,019)

18,198,344

26,578,405

Net change in fund balances Fund balances, beginning of the year Fund balances, end of the year

$

16,868,155


$

25,080,386

22

2006 G.O. Refunding and Capital Projects Fund

$

482,153 482,153

2008 General Capital Improvements Projects

$

$

Total Governmental Funds

15,774,787 2,501,126 1,439,727 885,404 1,252,979 21,854,023

$ 181,770,773 36,321,711 539,578 9,850,027 4,968,281 8,306,569 1,943 3,150,149 4,573,394 249,482,425

9,074,434

16,109,543

6,505,267 11,045,485

16,774,235 903,138 84,463,292 36,655,722 13,191,508 4,597,974 46,884,800 46,840,175

9,074,434

866,194 16,975,737

43,566,501 35,102,453 96,219,706

46,944,636 36,120,233 333,375,713

(8,592,281)

(16,413,364)

(74,365,683)

(83,893,288)

57,000,000 57,000,000

21,407,840 (33,304,976) 91,390,000 79,492,864

56,126,848 (86,780,999) 448,534 148,390,000 2,233 118,186,616

40,586,636

5,127,181

34,293,328

27,581,179

88,937,318

32,708,360

$ 123,230,646

(8,592,281) 16,579,390 $

562,373 562,373

Other Governmental Funds

7,987,109

$

40,586,636

$


23

CITY OF MOBILE, ALABAMA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2008 Net Change in Fund Balances - Total Governmental Funds

$

34,293,328

Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report the acquisition of capital assets as expenditures. However, in the statement of activities, the cost of those assets are capitalized and depreciated over their estimated useful lives. Expenditures for capital assets Less current year depreciation

$

55,493,838 (13,351,655)

42,142,183

(148,390,000) 2,743,725 44,200,911

(101,445,364)

(364,361) 153,764 (87,515) (13,785) 755,606 (1,163,610) (35,040) 1,325,283 (1,770,404) (129,292)

(1,329,354)

Contributions of capital assets are not reported as income in governmental funds. Change in deferred revenue Proceeds from debt obligations provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statements of net assets. Capital-related debt issued Principal payments - capital lease obligations Principal payments - bonds and notes payable Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Amortization of deferred amount on refunding Amortization of current year bond premium Amortization of current year bond costs Amortization of current year bond discount Change in long-term compensated absences Change in long-term insurance claims Change in long-term landfill postclosure liability Change in accrued interest Change in pension contribution Change in arbitrage liability Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service funds is reported with governmental activities. Change in net assets of governmental activities


(859,203) $ (27,198,410)

24

PROPRIETARY FUNDS

Proprietary funds are used to account for the City's ongoing organizations and activities which are similar to those often found in the private sector. Mobile Civic Center Mobile Convention Center WAVE Transit Municipal Parking Garage Alabama Cruise Terminal

CITY OF MOBILE, ALABAMA BALANCE SHEET PROPRIETARY FUNDS September 30, 2008

Mobile Civic Center ASSETS Current assets: Cash, equity in pooled cash and investments Restricted cash - capital purchases Receivables - net Due from other funds Prepaid expenses Materials and supplies Total current assets Noncurrent assets: Non-depreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable and accrued liabilities Deferred revenue Capital lease obligations - current portion Compensated absences Insurance claims payable Due to other funds Total current liabilities

$

$

$

Noncurrent liabilities: Compensated absences Self-insured liability - legal Capital lease obligations, net of current portion Total noncurrent liabilities Total liabilities

224,350 10,260,925 10,485,275 11,047,657

428,449 163,928 592,377

$

$

$

592,377

NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets Total liabilities and net assets

160,370 108,202 271,930 21,880 562,382

Mobile Convention Center

11,047,657

4,999,575 43,709,746 48,709,321 52,816,981

320,129 169,437 489,566

$

$

$

489,566

11,095,440 (640,160) 10,455,280 $

3,287,368 770,519 49,773 4,107,660

WAVE Transit

52,816,981


19,779,535 19,779,535 21,752,542

492,591 150,545 74,700 1,938,138 2,655,974 271,479 852,545 1,124,024 3,779,998

48,769,754 3,557,661 52,327,415 $

231,828 1,106,905 376,284 112,651 145,339 1,973,007

18,776,445 (803,901) 17,972,544 $

21,752,542

25

Municipal Parking Garage

$

$

$

671,953 235,000 350,000 1,256,953 1,895,790 5,125,107 7,020,897 8,277,850

30,781 4,579,082 4,609,863

$

$

$

4,609,863

8,277,850

202,671 202,671 18,690,919 18,690,919 18,893,590

-

$

$

$

-

7,223,329 (3,555,342) 3,667,987 $

Other Enterprise Funds


18,690,919 202,671 18,893,590 $

18,893,590

$

Governmental Activities Internal Service Funds

Totals

493,947 1,054,554 47,896 1,596,397

$

4,845,466 3,477,851 998,214 184,304 193,235 9,699,070

2,447,281 1,789,661 4,236,942 5,833,339

9,566,996 99,355,893 108,922,889 $ 118,621,959

$

395,137 1,413,820 1,808,957

$

$

1,667,087 4,912,447 150,545 74,700 3,351,958 10,156,737

$

4,145,043 544,706 (17,483) 4,672,266 10,272,541 10,272,541 14,944,807

1,358,285 1,704,745 3,063,030

1,808,957

271,479 852,545 1,124,024 11,280,761

415,874 1,211,663 1,627,537 4,690,567

4,139,532 (115,150) 4,024,382

108,695,419 (1,354,221) 107,341,198

9,088,123 1,166,117 10,254,240

5,833,339

$ 118,621,959

$


14,944,807

26

CITY OF MOBILE, ALABAMA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Year Ended September 30, 2008

Mobile Civic Center OPERATING REVENUES Facility rent Sales revenue Parking fees User charges Concessions Miscellaneous Total operating revenues

$

OPERATING EXPENSES Utilities Materials Cost of goods sold Personal services Professional and technical Commodities Insurance benefit payments Self-insured losses Event expenses Other expenses Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Taxes Investment income Interest expense Gain (loss) on disposal of assets Damaged vehicle reimbursement Operating grants and contributions Other revenue (expense) Net nonoperating revenues (expenses)

$

Change in net assets Net assets, beginning of the year

1,006,871 92,182 1,099,053 220,349 5,518,275 2,043,995 794,910 1,666,673 10,244,202

(1,933,485)

(6,751,917)

(9,145,149)

8,941,055 8,941,055

23 (47,456) 41,352 3,667,452 3,661,371

2,189,138

(5,483,778)

943,106 -

(3,200,000)

82,935 8,162,795 (1,938,100)

(990,379)

(1,010,862)

11,445,659 $

$

1,050,412 3,318,026 3,386,921 56,566 861,032 1,248,664 9,921,621

(1,933,485)

Capital grants and contributions Transfers in Transfers out

541,075 123,191 1,923,333 406,468 175,637 3,169,704

WAVE Transit

695,417 1,342,294 283,589 73,400 932,143 197,363 610,165 4,134,371

-

Net income (loss) before contributions and transfers

Net assets, end of the year

569,979 325,671 1,009,223 103,256 192,757 2,200,886


10,455,280

-

823,852

53,338,277 $

52,327,415


17,148,692 $

17,972,544

27


Municipal Parking Garage $

475,082 475,082

$

-

210,207

202,671

12,463 12,463

-

222,670

202,671

-

18,690,919 -

222,670

18,893,590

3,445,317 3,667,987

$

-

1,350 61,093 202,432 264,875

$

202,671 202,671


18,893,590

$

Totals $

1,586,136 169,696 448,862 7,743,958 511,404 463,256 10,923,312

$

21,410,643 21,410,643

184,074 110,566 5,890,332 154,518 619,036 392,632 145,138 7,496,296

2,150,252 110,566 16,068,927 3,825,028 2,794,347 932,143 2,307,030 3,873,072 32,061,365

2,628,112 126,135 1,078,215 19,474,015 (52,451) 1,794,663 1,676,965 26,725,654

(3,720,380)

(21,138,053)

(5,315,011)

46,919 (1,790) (131,437) (86,308)

8,941,055 59,405 (49,246) (90,085) 3,667,452 12,528,581

11,268 (29,847) 100,924 50,163 2,337 134,845

(3,806,688)

(8,609,472)

(5,180,166)

3,674,507 -

82,935 31,471,327 (5,138,100)

4,320,963 -

(132,181)

$

169,696 3,601,860 1,680 2,680 3,775,916


17,806,690

4,156,563

89,534,508

4,024,382

$ 107,341,198

(859,203) 11,113,443 $


10,254,240

28

CITY OF MOBILE, ALABAMA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended September 30, 2008

Mobile Civic Center Cash Flows From Operating Activities Cash received from: User charges Sales revenue Internal billings Customers and users Employee contributions Facility rent Parking Concessions Miscellaneous Cash payments for insurance claims Cash payments for operating expenses Cash payments for interfund services used Cash payments to employees for services Net cash provided (used) by operating activities

$

Cash Flows from Non-capital Financing Activities Taxes Operating grants and contributions Cost reimbursement Transfers in from other funds Transfers out to other funds Net cash provided by non-capital financing activities Cash Flows from Capital and Related Financing Activities Interest payments Acquisition of capital assets Proceeds from disposal of capital assets Reimbursement for damaged vehicles Capital grants and contributions Capital lease payments Net cash used by capital and related financing activities Cash Flows from Investing Activities Investment income received Net cash flows provided by investing activities Net increase (decrease) in pooled cash and investments Pooled cash and investments, beginning of the year Pooled cash and investments, end of the year $

1,009,223 504,407 325,671 103,256 (32,820) (2,139,441) (43,993) (1,342,294)


$

(1,615,991)

1,816,632 541,075 123,191 406,468 177,810 (5,565,673) (3,318,026)

WAVE Transit

$

1,059,597 (3,074,786) (5,473,896)

(5,818,523)

(7,489,085)

943,106 -

8,941,055 (3,200,000)

3,675,809 8,082,833 (4,069,780)

943,106

5,741,055

7,688,862

-

(123,105) -

(47,969) (59,432) 112,395 82,935 (144,506)

-

(123,105)

(56,577)

-

-

23

-

-

23

(672,885) 833,255 160,370

$

(200,573) 3,487,941 3,287,368


$

143,223 88,605 231,828

29


$

252,287 (31,662) -

$

220,625

$



202,671 -

$

202,671

3,370,074 169,694 1,680 2,680 (1,212,151) (100,000) (5,811,237)


Totals

$

7,458,197 169,694 1,297,769 448,862 511,404 147,670 (12,023,713) (143,993) (15,945,453)

(3,579,260)

(18,079,563)

$

18,568,913 95,084 2,849,702 (19,480,447) (5,120,349) (123,058) (3,210,155)

-

18,690,919 -

3,674,507 -

8,941,055 3,675,809 31,391,365 (7,269,780)

2,335 4,320,963 -

-

18,690,919

3,674,507

36,738,449

4,323,298

-

(18,893,590) -

(1,790) (30,278) (61,167) (64,085)

(49,759) (19,106,405) 51,228 82,935 (208,591)

(29,847) (1,373,086) (1,061,175) 50,163 778,770

-

(18,893,590)

(157,320)

(19,230,592)

(1,635,175)

12,463

-

46,919

59,405

11,267

12,463

-

46,919

59,405

11,267

233,088 438,865 671,953

-

(15,154) 509,101 493,947

$

$

$

(512,301) 5,357,767 4,845,466

$


(510,765) 5,200,514 4,689,749

30

CITY OF MOBILE, ALABAMA STATEMENT OF CASH FLOWS (CONT'D) PROPRIETARY FUNDS For the Year Ended September 30, 2008

Mobile Civic Center Reconciliation of operating loss to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation Change in assets and liabilities (increase) decrease in: Accounts receivable Prepaid expenses Materials and supplies Increase (decrease) in: Accounts payable Accrued liabilities Payroll payable Insurance claims payable Self-insured liability legal Deferred revenue Total adjustments Net cash provided (used) by operating activities

$

(1,933,485)


$

610,165

$

(6,751,917)

WAVE Transit

$

1,248,664

(9,145,149) 1,666,673

(109,565) 1,360 -

(106,701) (45,052) -

(39,456) (23,876) 5,767

41,111 (225,577) 317,494

(165,690) 2,173 933,394

27,613 (25,036) 44,379 1,656,064

(1,615,991)

$

(5,818,523)


$

(7,489,085)

31


$

$

210,207



$

202,671

$

(3,720,380)


Totals

$

(21,138,053)

$

202,432

-

145,138

(120,755) 30,781 -

-

(231,786) (10,309) 85,233

(608,263) (47,096) 91,000

103,056 -

(102,040) 10,418

-

131,701 21,143 141,120

(96,966) 106,665 65,522 (325,444) 3,058,490

385,505 3,077 (58,885) (4,862) 2,104,856

220,625

$

202,671

$

(3,579,260)

3,873,072

(5,315,011)

$

(18,079,563)


1,676,965

$

(3,210,155)

32

COMPONENT UNITS

Mobile Public Library The Public Park and Recreation Board

CITY OF MOBILE, ALABAMA STATEMENT OF NET ASSETS COMPONENT UNITS September 30, 2008

Public Park and Recreation Board

Mobile Public Library ASSETS Cash, equity in pooled cash and investments Receivables: Accounts, notes and other - net Depreciable capital assets Total assets LIABILITIES Current liabilities: Accounts payable and accrued liabilities Due within one year: Compensated absences Notes payable Due after one year: Compensated absences Notes payable Total liabilities

$

3,256,937

$

364,543

$

74,853 883,333 4,215,123

$

49,471

Total liabilities and net assets

$

3,621,480

$

310,598 198,946 874,087

$

385,451 1,082,279 5,089,210

$

54,920

$

104,391

38,005

82,301

38,005 82,301

418,461 505,937

319,167 456,388

418,461 319,167 962,325

883,333 2,825,853 3,709,186

125,927 291,772 417,699

1,009,260 3,117,625 4,126,885

-

NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets $

Total

4,215,123

$

874,087


$

5,089,210

33

CITY OF MOBILE, ALABAMA STATEMENT OF ACTIVITIES COMPONENTS UNITS For the year ended September 30, 2008

Expenses Mobile Public Library Culture and recreation Total Mobile Public Library Public Park and Recreation Board Culture and recreation Total Public Park and Recreation Board Total component units

Charges for Services

Program Revenues Operating Grants and Contributions

$ 9,416,336 9,416,336

$

795,601 795,601

$ 1,331,742 1,331,742

844,631 844,631 $ 10,260,967

750,636 750,636 $ 1,546,237

$ 1,331,742

Capital Grants and Contributions $

$

628,831 628,831 628,831

General Revenues: Payment from City of Mobile Payment from City of Saraland Grants, entitlements and contributions not restricted to specific programs Interest income Total general revenues Change in net assets Net assets - beginning Net assets - ending


34

Public Library $

$

Net (Expense) Revenue and Changes in Net Assets Public Park and Recreation Board

(6,660,162) (6,660,162)

6,172,104 144,000 422,739 15,139 6,753,982 93,820 3,615,366 3,709,186

Totals $

$

(6,660,162) (6,660,162)

(93,995) (93,995)

(93,995) (93,995) (6,754,157)

(93,995) 511,694 417,699

6,172,104 144,000 422,739 15,139 6,753,982 (175) 4,127,060 4,126,885

$


35

NOTES TO THE FINANCIAL STATEMENTS

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 1 – ORGANIZATION AND REPORTING ENTITY Organization The City of Mobile, Alabama (the City) was incorporated on January 20, 1814 under the provisions of Act 1911, No. 281, page 330; Code 1940. The City operates under a mayor-council form of government. The City engages in a comprehensive range of municipal services, including public safety, street and drainage, sanitation, health and social services, culture and recreation, public improvements, public transportation, planning and zoning, and general administrative services. Reporting Entity The financial statements of the City have been prepared in conformity with the accounting principles generally accepted in the United States as specified by the Governmental Accounting Standards Board (GASB). As required by accounting principles generally accepted in the United States, these financial statements present the primary government (the City) and its discretely presented component units, entities for which the government is considered financially accountable. Because the City appoints the Boards of Directors for these entities and there is a financial burden or benefit from these entities, they are considered governmental fund type component units and are reported in a separate column in the government-wide statements to emphasize that they are legally separate from the primary government. Each discretely presented component unit has a September 30 fiscal year-end. Component Units ·

Mobile Public Library - The Library has its own governing body which is appointed by the Council of the City of Mobile. The City contributes financial support to the Library on an annual basis. The Library’s other sources of revenue come from State and Federal financial assistance, other municipalities, Mobile County and user fees.

·

The Public Park and Recreation Board (Ladd – Peebles Stadium) - The City appropriates funds to the Public Park and Recreation Board for operational and capital outlay purposes. The members of the Board are appointed by the Council of the City of Mobile. The Board’s other sources of revenue come from the rental of Ladd – Peebles Stadium.

Complete financial statements of the individual component units can be obtained directly from their administrative offices as provided below. Mobile Public Library 700 Government Street Mobile, Alabama 36602

The Public Park and Recreation Board (Ladd – Peebles Stadium) P.O. Box 66721 Mobile, Alabama 36660 36

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 1 – ORGANIZATION AND REPORTING ENTITY (CONT'D) Related Organizations The City’s officials are also responsible for appointing the members of the boards of other organizations. However, the City has no financial burden or benefit from these organizations, nor do they have the power to impose their will upon the members of their boards. Therefore, these organizations are not considered component units of the City. The City’s related organizations are as follows: ·

Board of Water and Sewer Commissioners of the City of Mobile (BWSC) – BWSC is a separate governmental unit granted independent authority by the State of Alabama General Statutes. All of the five board members are appointed by the Council of the City of Mobile. BWSC has the ability to issue its own debt, and its operations are financed through water and sewer usage fees.

·

Mobile Housing Board – The Mayor appoints members to the governing board and can remove members for cause. The Housing Board has complete legislative and administrative authority. The Housing Board’s primary revenues come from rents and monies received from the Federal government.

·

Mobile Airport Authority – The Mayor appoints members to the governing board and can remove members for cause. The Airport Authority has complete legislative and administrative authority and has the ability to issue its own debt. Its operations are financed through aviation revenues and monies received from the Federal government.

Joint Ventures The City is a participant with other local governments in joint ventures to operate the following organizations: ·

Mobile Board of Health – The Mayor and the Council of the City of Mobile do not appoint the board members for the Mobile Board of Health. The City is legally required to contribute financial support to the Board of Health on an annual basis. The City contributed $600,000 to the Mobile Board of Health during the fiscal year ended September 30, 2008. The Mobile Board of Health receives contributions from other municipalities included within Mobile County as well as from Mobile County. Of the contributing entities, not one entity has unilateral control over the operations of the Mobile Board of Health. In addition, the Mobile Board of Health receives State and Federal financial assistance. The City has no equity interest in the Mobile Board of Health. Complete financial statements for the Mobile Board of Health may be obtained from their administrative office at 251 North Bayou Street, Mobile, Alabama 36601. 37

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 1 – ORGANIZATION AND REPORTING ENTITY (CONT'D) ·

Mobile Emergency Management - The board members for Mobile Emergency Management are the mayors for the municipalities in Mobile County and the President of the Mobile County Commission or their appointees. The City is legally required to contribute financial support to Mobile Emergency Management on an annual basis. The City contributed $432,876 to Mobile Emergency Management during the fiscal year ended September 30, 2008. Mobile Emergency Management receives contributions from other municipalities included within Mobile County as well as State and Federal financial assistance. The City has no equity interest in Mobile Emergency Management. Complete financial statements for Mobile Emergency Management may be obtained from their administrative office at 348 North McGregor Avenue, Mobile, Alabama 36618.

·

Mobile Personnel Board - The five board members are appointed by a supervisory committee. The supervisory committee consists of the mayors for all cities in Mobile County, the County Sheriff, the County License Commissioner, the County Revenue Commissioner and various county judges. The City is legally required to contribute financial support to the Personnel Board on an annual basis. The City contributed $1,053,186 to the Mobile Personnel Board during the fiscal year ended September 30, 2008. The Mobile Personnel Board also receives contributions from all municipalities included within Mobile County as well as from Mobile County. The City has no equity interest in the Mobile Personnel Board. Complete financial statements for the Mobile Personnel Board may be obtained from their administrative office at P.O. Box 66794, Mobile, Alabama 36660-1794.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The more significant of the government’s accounting policies are described below. Basis of Presentation – Government-wide and Fund Accounting The basic financial statements include both government-wide (based on the City as a whole) and fund financial statements. The focus is on either the City as a whole or major individual funds. Both the government-wide and fund financial statements categorize primary activities as either governmental or business type. In the government-wide Statement of Net Assets, both the governmental and business-type activities columns (a) are presented on a consolidated basis by column, and (b) are reflected, on a full accrual, economic resource basis, which incorporates long-term assets and receivables as well as long-term debt and obligations. The City generally first uses restricted assets for expenses incurred for which both restricted and unrestricted assets are available. The City may defer the use of restricted assets based on a review of the specific transaction.

38

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) The government-wide Statement of Activities reflects both the gross and net cost per functional category (public works, public safety, etc.) which are otherwise being supported by general government revenues (taxes, licenses and permits, etc.). The Statement of Activities reduces gross expenses, including depreciation, by related program revenues (charges for services, operating and capital grants, and contributions). The program revenues must be directly associated with a function or a business-type activity. Direct expenses are those that are clearly identifiable with a specific function or segment. Direct expenses are not eliminated from the various functional categories. The City does not allocate indirect expenses. The operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. The governmental funds financial statements are presented on a current financial resource and modified accrual basis of accounting. This is the manner in which these funds are normally budgeted. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements’ governmental column, a reconciliation is presented which briefly explains the adjustments necessary to reconcile the governmental fund statements to the government-wide statements’ governmental column. The focus of this reporting model is on the City as a whole and the fund financial statements, including the major individual funds of the governmental and business-type categories, as well as the component units. Each presentation provides valuable information that can be analyzed and compared (between years and between governments) to enhance the usefulness of the information. In the fund financial statements, the City’s accounting records are organized and operated on a fund basis. A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on the specific activities or attaining certain objectives, in accordance with special regulations, restrictions or limitations. The types of funds used in accounting for the financial operations of the City and their nature and purpose are as follows: Governmental Funds – Governmental funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City’s expendable financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is based upon determination of changes in financial position, rather than upon net income determination. The following are the City’s governmental funds:

39

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) General Fund – The General Fund is the general operating fund of the City and is considered a major governmental fund. All general tax revenue and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. The general operating expenditures, fixed charges and capital improvement costs that are not paid through other funds, are paid from the General Fund. Special Revenue Fund – The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than for major capital projects) requiring separate accounting because of legal or regulatory provisions or administrative action. The Special Revenue Funds are considered non-major governmental funds. Special Revenue Funds used by the City are as follows: ·

Four-cent Gasoline Tax – This fund accounts for tax revenues to be used to pay for street resurfacing.

·

Five-cent Gasoline Tax – This fund accounts for tax revenues to be used to pay the cost of construction, improvement, maintenance and supervision of highways, bridges and streets, including the retirement of bonds for the payment of which such revenues have been or may hereafter be pledged.

·

Seven-cent Gasoline Tax – This fund accounts for tax revenues to be used to pay the cost of electricity for street lights and the cost of operating the concrete and storm sewer maintenance, street sweeping, street repair, ditch cleaning, pipe-laying and heavy equipment departments.

·

Fuel Inspection Fees – This fund accounts for a special inspection fee levied by the State of Alabama to be used for street improvements and City planning purposes.

·

Economic Development – This fund is used to account for activities funded by recaptured funds from refinanced second mortgages for economic development planning from the Mobile Housing Board.

·

Tax Increment – This fund is used to account for revenues generated by tax collections under the Tax Increment Financing Plan and used to pay for redevelopment projects in the downtown area.

Debt Service Funds – These funds are non-major governmental funds used to account for assets held for the repayment of principal and interest on the City’s outstanding bond issues. Debt service funds used by the City are as follows:

40

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) ·

1996 General Obligation Refunding Warrants – This fund is used to service the remaining debt outstanding on the 1996 General Obligation Refunding Warrants.

·

1998 General Obligation Refunding and Improvement Warrants – This fund is used to service the remaining debt outstanding on the 1998 General Obligation Refunding and Improvement Warrants.

·

1999 General Obligation Private Placement Warrants – This fund is used to service the remaining debt outstanding on the 1999 General Obligation Private Placement Warrants.

·

1999 General Obligation Private Placement Warrants (I.P.S.C.O.) – This fund is used to service the remaining debt outstanding on the 1999 General Obligation Private Placement Warrants (I.P.S.C.O.).

·

2000 General Obligation Capital Projects Warrants – This fund is used to service the remaining debt outstanding on the 2000 General Obligation Capital Improvement Warrants.

·

2001 General Obligation Refunding and School Warrants – This fund is used to service the remaining debt outstanding on the 2001 General Obligation Refunding and School Warrants.

·

Bank Service Charges – Various Issues – This fund is used to pay agent and trustee fees for defeased debt.

·

2002 General Obligation Refunding Warrants – This fund is used to service the remaining debt outstanding on the 2002 General Obligation Refunding Warrants.

·

2002 Limited Obligation Tax Increment Warrants – This fund is used to service the remaining debt outstanding on the 2002 Limited Obligation Tax Increment Warrants.

·

2006 General Obligation Refunding and Improvement Warrants – This fund is used to service the remaining debt outstanding on the 2006 General Obligation Refunding and Improvement Warrants.

·

2006 General Obligation Private Placement Warrants – This fund is used to service the remaining debt outstanding on the 2006 General Obligation Private Placement Warrants.

·

2008 General Obligation Capital Improvement Warrants - This fund is used to service the debt outstanding on the 2008 General Obligation Capital Improvement Warrants.

41

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Capital Projects Funds – These funds are used to account for financial resources for the acquisition or construction of major capital facilities (other than those financed by proprietary fund types). Capital Projects Funds used by the City are as follows: ·

Capital Improvements – This fund is considered a major governmental fund and is used to provide for necessary capital improvements and is financed by the one and two thirds cents sales tax.

·

Strategic Plan – This fund is used to provide for several special projects. The majority of this fund is financed by a portion of the gasoline tax and sales tax.

·

1995 Capital Projects – This fund is used to provide for several projects: the closure of Bates Field Landfill, the upgrading of Azalea City Golf Course facilities, engineering for Magnolia Grove Road, a tennis court parking lot, purchase of the Touchdown building and improvements to Airport Boulevard and the garage work area. This fund was financed by the 1995 General Obligation Capital Improvement Warrants.

·

1996 General Obligation Capital Projects – This fund is used to provide for several projects; the renovation of Ladd Memorial Stadium, several drainage projects, street improvements, and water quality studies. This fund was financed by the 1996 General Obligation Capital Improvement Warrants.

·

Municipal Government Capital Improvements – This fund is used for several projects including the Mobile Regional Senior Community Center and various building maintenance projects.

·

1998 General Obligation Capital Projects – This fund is used to provide for several projects including modular buildings at Strickland Youth Center and the construction and installation of certain improvements to the City’s storm water drainage system.

·

1998 General Obligation Refunding and Capital Projects – This fund is used to provide for certain capital improvement projects, including addition to Public Library, Fine Arts Museum, GM&O Terminal renovations, Public Safety buildings, and City/County Misdemeanor facility.

·

1998 General Obligation Private Placement Projects – This fund is to provide for the acquisition of a new financial system and work order system.

·

1999 General Obligation Private Placement (I.P.S.C.O.) – This fund is to provide for site and infrastructure improvements to be constructed and installed by the Industrial Development Board of Mobile County at the site of a facility that produces and manufactures steel products by I.P.S.C.O. 42


2000 Capital Projects - This fund is used to provide for improvements to the City’s parks and recreational facilities and for storm water drainage and sewer improvements.

·

2002 Limited Obligation Tax Increment Capital Projects –This fund is used to acquire certain land and finance, construct and install certain public improvements located within the Tax Increment District.

·

2006 General Obligation Refunding and Capital Projects – This fund is a major governmental fund used to provide for certain capital improvement projects of the City. This fund was financed by the 2006 General Obligation Refunding and Capital Warrants.

·

Flood Management – This fund is used to hold funds collected from developers to help defray the cost of future drainage in an area. This fund was established by ordinance passed by the City Council.

·

2008 General Capital Improvement Projects - This fund is used to provide for certain capital improvement projects of the City.

·

2008-B General Obligation Capital Improvement Projects - This fund is used for certain capital improvement projects of the City.

·

2008-C General Obligation Capital Improvement Projects - This fund is used for certain capital improvement projects of the City.

Proprietary Funds – Proprietary funds are used to account for the City’s ongoing organizations and activities which are similar to those often found in the private sector. The measurement focus is based upon determination of net income. Revenues are recognized in the period in which they are earned and expenses are recognized in the period incurred. Operating revenues shown for proprietary operations generally result from producing or providing goods and services. Operating expenses for these operations include all costs related to providing the service or product. All other revenue and expenses not meeting these definitions are reported as nonoperating revenues and expenses. The City’s proprietary funds are as follows: Enterprise Funds – The City has the following eight enterprise funds to account for activities whose operations are financed and operated in a manner similar to private business operations – where the intent of the City is that the costs of providing goods or services to the general public on a continuing basis is financed or recovered primarily through user charges. The City has determined that periodic determination of revenues earned, expenses incurred and net income is appropriate for capital maintenance, public policy, management control and accountability. ·

Mobile Civic Center – This major enterprise fund is used to account for the operations of the Mobile Civic Center which include activities such as sporting events, social events, musical performances, and theatrical performances. 43


Mobile Convention Center – This major enterprise fund is used to account for the operations of the Mobile Convention Center which includes activities such as business conventions and social events.

·

WAVE Transit – This major enterprise fund is used to account for the operations of the City’s public transportation system which derives the majority of its income from passenger fare revenues and various government subsidies.

·

Alabama Cruise Terminal - This major enterprise fund is used to account for the operations of the Alabama Cruise Terminal, a cruise ship homeport, which includes an arrival and departure terminal facility and secured parking facilities.

·

Municipal Parking Garage – This major enterprise fund is used to account for the operations of the Municipal Parking Garage which is rented to the general public on a daily basis.

·

Azalea City Golf Course – This fund is used to account for the operations of the Azalea City Golf Course which derives revenues from course and cart rental.

·

Firemedics – This fund is used to account for the operations of the firemedics division which provides ambulance services to the general public.

·

Tennis Center – This fund is used to account for the operations of the Tennis Center which derives the majority of its income from tennis court rentals.

·

Affordable Homes Program – This fund is used to account for the operations of the Affordable Homes Program which derives the majority of its income from rental activity.

Internal Service Funds – These funds are used to account for the financing of goods or services provided to other departments or agencies of the City, or to other governments, on a costreimbursement basis. The internal service funds are included in governmental activities for government-wide reporting purposes. The excess revenue or expenses for the funds are allocated to the appropriate functional activity (governmental activities). Excess amounts have not been allocated to any business-type activity since these amounts would be insignificant. The City’s internal service funds are as follows: ·

Motor Pool – This fund is used to account for vehicles and equipment provided and maintained by the Motor Pool for other departments of the City.

·

Insurance Fund – This fund is used to account for automobile and general liability claims and expenses paid for other departments of the City.

44


Employee Health Fund – This fund is used to account for assets held in trust by the City for the payment of health insurance claims.

Basis of Accounting – Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government-wide financial statements, as well as the enterprise funds, apply Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. The City’s reporting entity does not apply FASB pronouncements or APB opinions issued after November 30, 1989. Government-wide Financial Statements In the government-wide Statement of Net Assets and Statement of Activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Fund Financial Statements Governmental Funds All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become both “measurable and available” to finance current expenditures. Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities (the City considers revenue available if it is collected within 60 days after year end). Selective sales and use taxes are considered available and measurable when the underlying exchange has occurred (i.e., September sales taxes are recorded as revenue in September even though the taxpayers remit the taxes in October) and are recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue when they are measurable and their validity seems certain. Property taxes are recognized as revenue when the enforceable legal claim has occurred. Grant revenues are recognized when all eligibility requirements have been met. Other revenues, including licenses and permits, certain charges for services, and miscellaneous revenues, are recorded as revenue when received in cash because they are generally not measurable until actually received. 45

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Expenditures (including capital outlay) are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Principal and interest on general long-term debt are exceptions to this rule and are recognized when due. Also, expenditures related to insurance claims, employee pension liability, compensated absences and the sinking fund are recognized when payable from expendable available financial resources. Proprietary Funds Proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when a liability is incurred, regardless of the timing of related cash flows. Budgets and Budgetary Accounting – The City follows these procedures in establishing the budgetary data presented in the accompanying financial statements: ·

Prior to August 20, the Mayor submits to the City Council a proposed current revenue and expenditure budget for the general operations of the City government for the fiscal year beginning October 1, which constitutes the General Fund Budget, a Capital Budget and a budget message. However, a legally adopted budget is only required for the General Fund. By law, expenditures may not exceed revenues and surplus available, if any.

·

A public hearing is held to obtain final taxpayer input, and necessary revisions are made not later than September 30.

·

The budget is adopted by a majority vote of the City Council, and any required revenue measures are legally enacted through passage of an ordinance.

·

Changes or amendments to budgeted expenditures of the City at the departmental and fund level must be approved by the City Council.

·

Departmental expenditures may not legally exceed budgetary appropriations for the General Fund. Accordingly, the legal level of budgetary control is established within the General Fund at the departmental level. Management may amend the budget at the object level within departments without City Council approval. All unencumbered balances lapse at year-end.

46

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Revenue Recognition – Ad valorem taxes are assessed on property valuations and statutory liens are attached to such properties as of October 1st each year. These taxes are due October 1st, but do not become delinquent until December 31st, after which penalty fees are levied. If taxes and penalties are not paid by June 30th of the following year, the property is then sold for taxes due and remittance is made at this time by the Mobile County Tax Collector to the City of Mobile. All tax levies are collected and remitted to the City of Mobile by the end of the City’s fiscal year; consequently, the financial statements do not have accounts receivable or allowance for uncollected tax levies. Other material revenue which is susceptible to accrual includes sales tax, interest income and state-shared revenue. Revenue which is not both available and measurable and is thus not susceptible to accrual includes property and franchise taxes and business licenses. Deferred Revenue – The fund financial statements include both unearned revenue and revenue that is not considered available to finance current expenditures. The government–wide financial statements include only unearned revenue. Encumbrances – Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control in the General Fund and Capital Projects Funds. Encumbrances outstanding at year-end are reported as a reservation of fund balance for subsequent year expenditures. For budgetary purposes, current year encumbrances are treated as expenditures and any unencumbered balances lapse at year-end. Encumbrances have been recorded in the General Fund and Capital Projects Funds. Pooled Cash and Investments – Pooled cash and investments consist of cash, government securities, certificates of deposit, and repurchase agreements. Cash balances and the requirements of all funds are considered in determining the amount to be invested. Interest earned on pooled cash and investments is recorded as General Fund revenue and allocated between funds based upon balances (see Note 3). The City reports its money market investments and investments in short-term debt securities that have remaining maturities of one year or less at amortized cost. Inventories - All City inventories are maintained on a consumption basis of accounting where items are purchased for inventory and charged to the budgetary accounts as the items are consumed. Inventories held by the General Fund consist principally of traffic engineering, municipal garage, public buildings, and electrical department supplies. Inventories are stated at average or weighted average cost. Appropriate allowances have been recorded for obsolete and surplus items.

47

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Interfund Transactions – On fund financial statements, receivables and payables resulting from outstanding balances are classified as “interfund receivables/payables.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Flow of cash or goods from one fund to another without a requirement for repayment is reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds. The governmentwide statements eliminate interfund transfers and receivables/payables as reported within the segregated governmental and business-type activities column. Only transfers and receivables/payables between the two columns appear in this statement, which zero in total. Capital Assets - The accounting treatment over capital assets depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. Government-wide Financial Statements In the government-wide financial statements, capital assets are valued at historical cost, or estimated historical cost if actual is unavailable. Donated capital assets are valued at their estimated fair market value on the date donated. The City capitalizes assets with a cost of $2,500 or more as purchase and construction outlays occur. Infrastructure has been capitalized retroactively to 1980 using estimated historical costs. Depreciation is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciation is provided over the assets’ useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Types of Assets Buildings Improvements Infrastructure (Drainage, Streets, Bridges, Sidewalks and Docking) Infrastructure (Utilities and Landscaping) Machinery and equipment Automotive equipment Office equipment

Estimated Useful Life 25-60 years 20 years 50 years 25 years 5-10 years 3-15 years 6 years

Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide financial statements. 48

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Bond Discounts, Premiums and Issuance Costs - In the governmental funds, bond discounts, premiums and issuance costs are treated as period costs in the year of issue. In the government-wide financial statements, bond discounts, premiums and issuance costs are deferred and amortized over the term of the bonds using the bonds outstanding method which approximates the effective interest method. Bond discounts/premiums are presented as a reduction/addition to the face amount of the bonds payable whereas issuance costs are recorded as other assets. Compensated Absences – The GASB requires that accrued liabilities for future vacations and sick leave be recorded if, (1) the employees' rights to receive compensation are attributable to services already rendered, and (2) it is probable that the employer will compensate the employees for the benefits through paid time off or some other means, such as cash payments at termination or retirement. The liability for these compensated absences is recorded as long-term debt in the government-wide financial statements. The current portion of this debt is estimated based on historical trends. In the enterprise funds, the compensated absences liability is presented in the balance sheet, and is classified as current and non-current. In the governmental fund financial statements, amounts that would normally be paid with expendable available financial resources once the liability has matured, for example as a result of employee resignations and retirements, are recorded in the General Fund, and the amounts considered noncurrent are not reported in the fund financial statements. Amounts paid or payable within 60 days are deemed to be payable from expendable financial resources. Equity Classifications Government-wide Financial Statements Equity is classified as net assets and displayed in three components: ·

Invested in capital assets, net of related debt – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds and mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

·

Restricted net assets – Consists of net assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) the City’s own laws through its enabling legislation and other provisions of its laws and regulations.

·

Unrestricted net assets – All other net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.”

49

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Fund Financial Statements The fund equity of the governmental fund financial statements is classified as fund balance. Fund balance is further classified as reserved and unreserved. The fund equity of the proprietary fund financial statements is classified in the same manner as the government-wide financial statements. Statement of Cash Flows – For the purposes of the Statement of Cash Flows, the proprietary funds consider cash and all highly liquid investments with an original maturity of three months or less to be cash equivalents. NOTE 3 – CASH, EQUITY IN POOLED CASH AND INVESTMENTS Deposits Cash balances available for investment by most City funds are maintained in pooled cash and investment accounts to improve investment opportunities. The equity in pooled cash and investment balances in the accompanying combined balance sheet represents the undivided interest of each respective fund in pooled accounts. Included as deposits are bank accounts and certificates of deposit. Each of the banks holding the City’s deposits, as well as those of the Component Units, is a certified participant in the Security for Alabama Funds Enhancement (SAFE) program. Through the SAFE program, all public funds are protected through a collateral pool administered by the Alabama State Treasury. The City’s primary government deposits were fully insured or collateralized at September 30, 2008. At year-end, the carrying amount of the City’s deposits was $125,496,164 and the bank balance was $98,298,449. Included in the bank balances are certificates of deposit totaling $80,673,659. Of the total bank balance, $2,250,000 was covered by Federal Depository Insurance. The remainder of $123,246,164 was covered under the SAFE program. Investments The City is restricted by State statute to investments in U.S. Government Treasury and Agency securities, certificates of deposit and money market accounts, repurchase agreements and reverse repurchase agreements, banker’s acceptances and commercial paper. In each case, all funds must be fully insured or collateralized by the pledge of securities. Securities allowed as collateral include U.S. Government Treasury and Agency securities, State of Alabama Obligations and City of Mobile Obligations. As of September 30, 2008, the City had the following investments:

Money market funds Federal Home Loan Bank Certificates of deposit

$ $

Fair Value 1,912,777 13,520,983 80,673,659 96,107,419

Weighted Average Maturity (Years) 0.58 0.82 0.79 0.73

50

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 3 – CASH, EQUITY IN POOLED CASH AND INVESTMENTS (CONT'D) Credit Risk and Concentration of Credit Risk The City’s investment policy prohibits the purchase of debt securities rated below AA. As of September 30, 2008, the City’s investments in Federal Home Loan Bank securities are rated A1+ by Standard and Poor’s (S & P), and the City’s money market investments are rated AAAm by S & P. These are S & P’s highest ratings in the respective investment categories. The investment policy also requires diversification of the City’s investment portfolio by security type and institution. With the exception of U.S. Treasury Securities, the City will allow no more than 65% of its investment portfolio to be invested in a single issuer. Of the City’s total investments 1.99% are in Dreyfus Government Cash Funds and 14.07% are issues of the Federal Home Loan Bank. Custodial Credit Risk The City’s investment policy includes a requirement that City funds be collateralized at 102%. Investments are exposed to custodial credit risk if the securities are uninsured and unregistered and are either held by the counterparty, or by the counterparty’s trust department or agent but not in the City’s name. Interest Rate Risk The City has an investment policy that limits the maturities on individual investments to no more than one year. NOTE 4 – RECEIVABLES Receivables at September 30, 2008 consist of the following: Governmental Activities Receivables Taxes Customers and other Other governmental units

$

Gross receivables Less: allowance for uncollectibles Net receivables

14,113,814 3,648,905 5,153,428

$

22,916,147 (40,647) $

22,875,500


Business-type Activities 720,684 6,238,345 4,403

$

6,963,432 (3,485,581) $

3,477,851

14,834,498 9,887,250 5,157,831 29,879,579 (3,526,228)

$

26,353,351

Substantially all receivables are due in 2009, except General Fund assessments receivable for lot cleaning and building demolitions of $2,085,108, a long-term note receivable from the Mobile Housing Board for $1,790,000 and Capital Projects Funds assessments receivable for public improvements of $109,554.

51

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 5 – INTERFUND TRANSFERS Transfers within the reporting entity are substantially for the purposes of subsidizing operating functions, funding capital projects and asset acquisitions, or maintaining debt service on a routine basis. Resources are accumulated in a fund to support and simplify the administration of various projects or programs. Interfund transfers for the year ended September 30, 2008, are as follows: Transfer In Major Governmental Funds General Fund Capital Improvements Fund Other Governmental Funds Internal Service Funds Mobile Civic Center WAVE Transit Other Enterprise Funds Total General Fund Capital Improvements Fund General Fund Other Governmental Funds WAVE Transit Total Capital Improvements Fund Other Governmental Funds General Fund Capital Improvements Fund Other Governmental Funds Mobile Convention Center Alabama Cruise Terminal Other Enterprise Funds Total Other Governmental Funds Internal Service Funds General Fund Total Internal Service Funds Major Enterprise Funds Mobile Civic Center General Fund Total Mobile Civic Center Mobile Convention Center Other Governmental Funds Total Mobile Convention Center WAVE Transit General Fund Capital Improvements Fund Total WAVE Transit Alabama Cruise Terminal Other Governmental Funds Total Alabama Cruise Terminal Other Enterprise Funds General Fund Other Governmental Funds Total Other Enterprise Funds

$ 27,755,152 5,137,622 1,938,138 34,830,912

Transfer Out

$

440,000 51,250 4,320,963 943,106 7,662,795 2,651,079 16,069,193

440,000 2,369,940 2,809,940

27,755,152 11,875,702 500,000 40,130,854

51,250 12,146,577 6,061,263 3,200,000 21,459,090

5,137,622 2,369,940 6,332,138 18,690,919 1,023,428 33,554,047

4,320,963 4,320,963

-

943,106 943,106

-

-

3,200,000 3,200,000

7,662,795 500,000 8,162,795

1,938,138 1,938,138

18,690,919 18,690,919

-

2,651,079 1,023,428 3,674,507

-

$ 94,892,232

$ 94,892,232

52

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 6 – INTERFUND RECEIVABLES AND PAYABLES Generally, outstanding balances between funds reported as “due to/from other funds” include subsidy commitments outstanding at year-end and other miscellaneous receivables/payables between funds. Interfund receivables and payables at September 30, 2008, are as follows: Due To Other Funds Major Governmental Funds General Fund Other Governmental Funds Mobile Civic Center WAVE Transit Other Enterprise Funds Total General Fund

$

271,930 376,284 648,214

Capital Improvements Fund Municipal Parking Garage Other Governmental Funds Other Enterprise Funds Total Capital Improvements Fund

350,000 350,000

Other Governmental Funds General Fund Capital Improvements Fund Total Other Governmental Funds

25,965 700,000 725,965

Mobile Civic Center General Fund Total Mobile Civic Center

Due From Other Funds

$

700,000 360,000 1,060,000 -

-

WAVE Transit General Fund Capital Improvements Fund Total WAVE Transit

271,930 271,930

2,003,100 2,003,100

Municipal Parking Garage Capital Improvements Fund Total Municipal Parking Garage

376,284 376,284

-

Other Enterprise Funds General Fund Capital Improvements Fund Total Other Enterprise Funds

350,000 350,000

1,053,820 360,000 1,413,820 $

5,141,099

25,965 2,003,100 1,053,820 3,082,885

$

5,141,099

Substantially all interfund balances are expected to be repaid within one year except $350,000 due to the Municipal Parking Garage from the Capital Improvements Fund, and $700,000 due to the Capital Improvements Fund from the Strategic Plan Fund.

53

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS September 30, 2008 NOTE 7 – CAPITAL ASSETS Governmental Activities The following is a summary of changes in capital assets for the year ended September 30, 2008: Capital Assets, Not Depreciated

Balance, 10/1/07 Additions Deductions Balance, 9/30/08 Accumulated Depreciation Balance, 10/1/07 Additions Deductions Balance, 9/30/08 Capital Assets, Net

Land

Construction in Progress

Infrastructure in Progress

$ 23,569,134 554,350 24,123,484

$ 32,662,815 5,896,596 8,210,939 30,348,472

$

$ 24,123,484

47,935,127 16,484,364 15,670,336 48,749,155

$ 30,348,472

$

48,749,155

Capital Assets, Depreciated Improvements Other than Vehicular Other Buildings Equipment Equipment

Infrastructure

Totals

$ 52,917,269 1,111,650 675,000 53,353,919

$ 87,013,222 8,210,939 95,224,161

$ 49,447,386 3,230,879 2,164,214 50,514,051

$40,847,805 2,500,142 626,032 42,721,915

$ 255,964,839 65,254,022 321,218,861

$ 590,357,597 103,242,942 27,346,521 666,254,018

22,169,909 853,138 1,576 23,021,471

21,302,039 3,381,630 24,683,669

31,570,449 3,073,177 1,498,019 33,145,607

26,054,822 2,830,767 426,401 28,459,188

61,794,966 5,138,942 66,933,908

162,892,185 15,277,654 1,925,996 176,243,843

$ 30,332,448

$ 70,540,492

$ 17,368,444

$14,262,727

$ 254,284,953

$ 490,010,175

Buildings

Construction in progress consists of the following: Balance October 1, 2007 Municipal Garage Expansion GIS Mapping System Police - Joint Use Firearms Range Cooper Riverside Park Improvements Langan Park - Athletic Field Parking Lot McNally Park - Municipal Pier Mobile Tennis Center - Repairs Lake Drive Tricentennial Park Mobile Regional Senior Comm. Center Waterfront Development Saenger Theater Renovation Project Fort Conde Reconstruction Sage Avenue Armory Technology Building Renovations Dearborn Street Community Center Rep. Springhill Ave Rec Center Renovations Taylor Park Improvements Mobile Civic Center - Escalator Upgrade Bring Back Broad Street New Towing Facility - Impound Yard New Public Safety Facility Others

$

916,537 2,847,827 1,596,308 166,757 157,118 511,192 2,329,194 641,098 3,288,441 14,474,480 2,964,801 451,002 199,342 141,029 105,301 323,819 137,257 155,093 347,345 44,350 864,524

$ 32,662,815

Additions $

938 9,676 372,166 1,053 21,335 28,835 646 1,960,379 23,498 13,997 650,000 69,336 41,310 29,500 226,819 27,714 49,289 1,437,819 382,582 183,357 366,347

$ 5,896,596

Deductions $

Balance September 30, 2008

167,810 178,453 511,192 2,358,029 2,978,798 268,678 182,339 134,801 164,971 204,382 1,061,486

$

917,475 2,857,503 1,968,474 641,744 5,248,820 14,497,978 1,101,002 550,638 1,785,164 426,932 183,357 169,385

$ 8,210,939

$

30,348,472

54

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 7 – CAPITAL ASSETS (CONT'D) As of September 30, 2008, commitments to contractors on capital projects totaled approximately $19.2 million. Budgeted costs to complete projects in progress totaled approximately $82.2 million. Depreciation expense was charged to governmental activities as follows: General government Economic development Public safety Public works Culture and recreation Finance Total depreciation expense

$

8,053,033 3,398 2,208,547 1,115,510 1,691,549 279,618 $ 13,351,655

Business-type Activities: The following is a summary of changes in capital assets for the year ended September 30, 2008: Capital Assets, Not Depreciated Construction in Progress

Land Balance, 10/1/07

$ 10,329,364

Additions

$

-

Deductions Balance, 9/30/08

Buildings

2,265,008

$ 106,755,675

152,174

20,348,192

1,755,550

1,424,000

8,573,814

993,182

Capital Assets, Depreciated Improvements Other than Vehicular Buildings Equipment $

10,585,072 34,500

-

-

$12,704,006 -

Other Equipment

Totals

$ 5,870,495

$ 148,509,620

87,651

20,622,517

14,356

180,921

3,374,827

127,103,867

10,619,572

12,689,650

5,777,225

165,757,310

Accumulated Depreciation Balance, 10/1/07

-

-

38,918,566

3,981,705

8,635,081

2,940,734

54,476,086

Additions

-

-

1,924,119

414,906

21,305

101,621

2,461,951

Deductions

-

-

8,861

94,755

103,616

-

-

4,396,611

8,647,525

2,947,600

56,834,421

6,222,961

$ 4,042,125

$ 2,829,625

$ 108,922,889

Balance, 9/30/08 Capital Assets, Net

$

8,573,814

$

993,182

-

-

40,842,685 $ 86,261,182

$

Approximately $7.0 million (cost of $12.1 million and accumulated depreciation of $5.1 million) of the Municipal Parking Garage property is leased to others as of September 30, 2008. (See Note 12) Depreciation expense was charged to business-type activities as follows: Civic center Convention center WAVE transit Parking garage Golf course Firemedics Tennis center Affordable homes program Total depreciation expense

$

610,165 1,248,663 256,342 201,644 119,093 10,475 4,850 10,719 $ 2,461,951

55

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 8 – LONG-TERM DEBT New Debt Issuances On July 24, 2008 the City issued $69,295,000 in City of Mobile, Alabama General Obligation Refunding and Improvement Warrants, Series 2008B (the Series 2008B Warrants). The Series 2008B warrants were issued to , 1) finance the cost of certain capital improvements, 2) provide funds to advance refund the City's outstanding General Obligation Capital Improvement and Refunding Warrants, Series 1998, (the Series 1998 Warrants) and, 3) provide funds to pay the expenses of issuing the Series 2008B Warrants. In order to effect the refunding of the Series 1998 Warrants the City entered in to an irrevocable trust agreement with Regions Bank. The trust agreement required the City to deposit substantially all the funds from the proceeds from issuing the Series 2008B Warrants into a trust account to be invested in U.S. Treasury obligations. The deposit of the proceeds into the irrevocable trust legally defeased the Series 1998 Warrants. Interest on the Series 2008B Warrants is payable semiannually on February 15 and August 15 of each year beginning February 15, 2009 at interest rates ranging between 4.000% to 5.000%. Principal payments on the Series 2008 Warrants are due annually beginning February 15, 2012 through February 15, 2020. On July 24, 2008 the City issued $22,095,000 in City of Mobile, Alabama General Obligation Warrants, Series 2008C AMT (the Series 2008C Warrants). The Series 2008C warrants were issued to , 1) finance the cost of certain capital improvements, 2) provide funds to refinance and pay the outstanding principal of an existing loan between Alabama Real Estate Holdings, Inc. and the Teachers Retirement System of Alabama, Inc., with an outstanding balance of $18,680,918 and, 3) provide funds to pay the expenses of issuing the Series 2008C Warrants. Interest on the Series 2008C Warrants is payable semiannually on February 15 and August 15 of each year beginning February 15, 2009 at interest rates ranging between 4.000% to 4.830%. Principal payments on the Series 2008C Warrants are due annually beginning February 15, 2012 through February 15, 2030. On January 22, 2008 the City issued $57,000,000 in City of Mobile, Alabama General Obligation Warrants, Series 2008 (the Series 2008 Warrants). The Series 2008 warrants were issued to, 1) finance the costs of capital improvements for the City, 2) pay the City's obligation for certain economic development incentives, and 3) pay the expenses of issuing the Series 2008 Warrants. Interest on the Series 2008 Warrants is payable semiannually on February 15 and August 15 of each year beginning August 15, 2008 at interest rates ranging between 4.000% to 4.460%. Principal payments on the Series 2008 Warrants are due annually beginning February 15, 2022 through February 15, 2030.

56

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 8 – LONG-TERM DEBT (CONT'D) The general and limited obligation bonds/warrants and notes of the City include the following at September 30, 2008: $2,700,000; 1999 General Obligation Private Placement Warrants (IPSCO), due annually with interest payable semi-annually at a rate of 4.85% per annum; maturing February 15, 2009

$

330,000

$31,430,000; 2001 General Obligation Refunding Warrants, due annually with interest payable semi-annually at rates ranging from 4.00% to 5.00% per annum; maturing February 15, 2020

16,060,000

$65,725,000; 2002 General Obligation Refunding Warrants, due annually with interest payable semi-annually at rates ranging from 5.2% to 5.5% per annum; maturing August 15, 2020

56,350,000

$10,655,000; 2002 Limited Obligation Tax Increment Warrants; due annually with interest payable semi-annually at rates ranging from 3.7% to 5.5% per annum; maturing February 15, 2023

9,440,000

$63,410,000; 2006 General Obligation Refunding and Improvement Warrants; due annually with interest payable semi-annually at rates ranging from 4.38% to 5.00% per annum; maturing February 15, 2030

60,150,000

$3,100,000; 2006 General Obligation Private Placement Warrants; due semiannually with interest payable semi-annually at a rate of 4.50% per annum; maturing August 15, 2016

2,610,000

$57,000,000; 2008 General Obligation Refunding and Improvement Warrants, due semi-annually with interest payable at rates ranging from 4.00% to 5.00% per annum; maturing February 15, 2020

57,000,000

$69,295,000; 2008B General Obligation Refunding and Improvement Warrants, due semi-annually with interest payable at rates ranging from 4.00% to 5.00% per annum; maturing February 15, 2030

69,295,000

$22,095,000; 2008C (AMT) General Obligation Refunding and Improvement Warrants, due semi-annually with interest payable at rates ranging from 4.00% to 5.00% per annum; maturing February 15, 2030.

22,095,000

Total bonds/warrants payable $2,000,000; note payable to Chemical Bank of New York, annual principal payments ranging from $40,000 to $200,000 through August 2012, semiannual interest payments with rates ranging from 3.73% to 7.9% per annum

$ 293,330,000

$

$1,275,000; note payable to JPMorgan Chase, annual principal payments ranging from $40,000 to $115,000 through August 2022, semi-annual interest payments at LIBOR plus 0.2% (5.1325% at September 30, 2008) Total notes payable

700,000

1,090,000 $

1,790,000

57

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 8 – LONG-TERM DEBT (CONT'D) The principal maturities and related interest requirements for the bonds, warrants and notes payable for the next five fiscal years and thereafter are as follows: Bonds/Warrants Payable

Fiscal Year Ending September 30 2009

Principal $

8,890,000

Governmental Activities Interest $

14,102,575

Total $

22,992,575

2010

9,290,000

13,500,472

22,790,472

2011

9,740,000

13,061,783

22,801,783

2012

14,000,000

12,517,624

26,517,624

2013

15,045,000

11,845,356

26,890,356

2014-2018

85,385,000

47,808,849

133,193,849

2019-2023

68,105,000

26,689,138

94,794,138

2024-2028

56,380,000

13,088,713

69,468,713

2029-2035

26,495,000

1,224,625

27,719,625

293,330,000

153,839,135

447,169,135

Subtotals Plus: Bond Premium Less: Deferred Bond Discount

3,351,654

(3,351,654)

-

(1,814,749)

1,814,749

-

Less: Deferred amount on refunding Totals

(3,807,295)

3,807,295

-

$ 291,059,610

$ 156,109,525

$ 447,169,135

$

$

$

Notes Payable 2009

210,000

89,215

299,215

2010

220,000

80,918

300,918

2011

235,000

71,557

306,557

2012

260,000

60,931

320,931

2013

65,000

48,635

113,635

2014-2018

385,000

188,182

573,182

2019-2022

415,000

62,815

477,815

Totals

$

1,790,000

$

602,253

$

2,392,253

The City has entered into capital leases for various items including an aerial ladder truck, garbage trucks and cans, fire trucks, heavy equipment for the motor pool, police cars, a fire boat, heavy equipment for public works and services. Future debt service payments under these governmental activity capital leases are as follows:

58

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 8 – LONG-TERM DEBT (CONT'D) Present Value of Net Minimum Lease Payments


$

Amount Representing Interest

3,026,871

$

Total Minimum Future Lease Payments

185,013

$

3,211,884

2010

1,638,364

83,397

1,721,761

2011

755,771

30,990

786,761

2012

239,067

6,717

245,784

Totals

$

5,660,073

$

306,117

$

5,966,190

The City entered into a capital lease for six diesel transit buses for use in public transportation. Future debt service payments under these business-type activity capital leases are as follows: Present Value of Net Minimum Lease Payments


$


150,545

$

Total Minimum Future Lease Payments

41,929

$

192,474

2010

156,838

35,636

192,474

2011

163,394

29,080

192,474

2012

170,224

22,251

192,475

2013

177,339

15,135

192,474

2014

184,751

7,722

192,473

Totals

$

1,003,091

$

151,753

$

1,154,844

Generally, the capital leases provide for bargain purchase options or options to purchase at prices representing the expected fair value of the property. The following is an analysis of the leased property under capital leases by major classes:

Vehicles

Governmental Activities

Business-Type Activities

$ 12,613,082

$

Equipment Less: Accumulated amortization

2,872,974

171,524

15,486,056

1,699,322

(6,975,682) $

1,527,798

8,510,374

(761,343) $

937,979

59

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 8 – LONG-TERM DEBT (CONT'D) The following is a summary of the changes in liabilities reported in the Statement of Net Assets for the year ended September 30, 2008: Balance October 1

Additions

Deductions

Balance September 30

Due Within One Year

$188,506,500

$148,390,000

$43,566,500

$293,330,000

$ 8,890,000

1,925,377

1,426,277

-

3,351,654

-

(1,705,600)

-

(1,814,749)

-

(3,807,295)

-

Governmental Activities General and limited obligation bonds/warrants Plus: Bond premium Less: Bond discount

(109,149)

Less: Deferred amount on refunding

(4,171,656)

-

(364,361)

Total general and limited obligation bonds/warrants Notes payable

186,151,072 1,980,000

148,110,677 -

43,202,139

291,059,610

8,890,000

190,000

1,790,000

210,000

Obligations under capital leases Compensated absences Self-insured legal liability

7,625,028

1,150,000

3,114,955

5,660,073

3,026,871

13,492,110

2,077,690

1,340,247

14,229,553

1,340,247

4,860

415,874

22,679,905

8,852,859

3,762,191

35,040

1,007,459

35,040

420,734

-

Insurance claims

9,907,515

21,625,249

Landfill postclosure liability

1,042,499

-

OPEB liability Arbitrage liability

129,292

20,936,000 -

-

-

20,936,000

-

-

-

70,696,438

343,951,428

17,264,349

208,590

1,003,091

150,545

129,292

Total governmental activities

220,748,250

193,899,616

Business-type Activities Obligations under capital leases Compensated absences

1,211,681

-

305,572

372,963

332,356

346,179

74,700

1,517,253

372,963

540,946

1,349,270

225,245

$222,265,503

$194,272,579

$71,237,384

$345,300,698

$17,489,594

Total business-type activities Total primary government

Repayment of principal and interest maturities is made from sales taxes. Also, for governmental activities, compensated absences are generally liquidated by the general fund.

60

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 8 – LONG-TERM DEBT (CONT'D) Under State law, the City’s legal debt may not exceed 20% of the total assessed value of real and personal property within the City. At September 30, 2008, the permissible debt limit exceeded actual debt by approximately $223 million. The City, on behalf of the Mobile Housing Board, has obtained a total of three loans from a bank guaranteed by the Secretary for Housing and Urban Development (HUD) under section 108 of the Housing and Community Development Act of 1974. Proceeds of the loans were passed through the City to the Mobile Housing Board for the construction of three buildings located in downtown Mobile. Although the City remains contingently liable, the loans have been recorded as obligations of the Mobile Housing Board, a separate reporting entity, because of its agreement to service the debt until retirement with proceeds from a HUD community development block grant. The balances of the loans outstanding at September 30, 2008 totaled $3,650,000. NOTE 9 – DEFEASANCE OF PRIOR DEBT The City has defeased certain outstanding general obligation bonds and warrants and other debt by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old debt. Accordingly, the trust accounts and the defeased debt are not included in the City’s financial statements. At September 30, 2008, the following outstanding debt is considered defeased: 2000 General Obligation Capital Improvement Warrants

$ 11,345,000

NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS The City contributes to three retirement plans covering substantially all of its employees. Contributions by the City to the three plans during the year are summarized as follows: Employees' Retirement System of Alabama (ERSA) Police and Firefighters Retirement Plan (PFFRP) General Municipal Employee Pension Trust Fund (GMEPTF) Total

$ 3,346,473 10,579,773 30,070 $13,956,316

Employees’ Retirement System of Alabama – All of the City’s employees, other than police and fire employees, participate in ERSA, an agent multiple-employer, defined benefit pension plan. ERSA provides retirement and other benefits for state employees, state police, and, on an elective basis, to employees of all cities, counties, towns and quasi-public organizations. The ERSA issues a stand-alone financial report which may be obtained by contacting The Retirement Systems of Alabama at 135 South Union Street, Montgomery, AL 36130-2150.

61

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) The plan provides retirement benefits as well as death and disability benefits. Members vest after 10 years of service. Employees attaining the earlier of age 60 or completing 25 or more creditable years of service are entitled to an annual retirement benefit, payable monthly for life. Service retirement benefits are calculated by three methods with the members receiving payments under the method which yields the highest monthly benefit: (1) minimum guaranteed, (2) money purchase, or (3) formula. Under the formula method, members are allowed 2.0125% of their final average salary (best 3 of the last 10 years) for each year of service. The plan permits early retirement at the age of 60 and completion of 10 years of creditable service. Active employees who become disabled receive disability benefits which are calculated in the same manner as those used for service retirement benefits. These benefits are paid until the earlier of death or recovery from disability. If an active employee dies, his/her designated beneficiary receives payments, not to exceed the balance of his/her vested contributions plus the member’s annual earnings from the previous fiscal year at date of death. The beneficiary has the option of receiving an initial lump sum or to receive monthly payments until the designated amount is paid in full. If a member’s employment is terminated before the member is eligible for any other benefits under the Employees’ Retirement System of Alabama, the member shall receive a refund of his/her member contribution plus interest credited at 4% per year compounded annually, based upon the following years of service: Service Less than 3 years 3 - 15 years 15 - 20 years 21 - 25 years

Interest Credited None 50% of interest earned 60% of interest earned 70% of interest earned

Employees participating in the plan are required to contribute 5% of their earnings to the plan. Employer contributions during fiscal 2008 were based on 7.74% of salaries. Employer contributions required to support the benefits of the system are determined using a level funding approach and consist of a normal contribution, determined using the “entry age normal” method, and an unfunded accrued liability determined by subtracting the present value of prospective employer normal contributions and member contributions together with the current assets held from the present value of total expected benefits to be paid from the system. Total contributions to the pension plan in fiscal 2008 amounted to $5,475,110 of which $3,346,473 and $2,128,637 were made by the City of Mobile and its employees respectively. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of September 30, 2007.

62

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) The authority to establish or amend the Plan’s funding policy is granted under Provisions of Act 515, Acts of Alabama 1945, for the purpose of providing retirement allowances and other specified benefits for state employees, state police, and, on an elective basis, all cities, counties, towns and quasi-public organizations. The responsibility for the general administration and operation of the employee retirement system is vested in the Board of Control. Benefit provisions are established by the Code of Alabama 1975, Sections 36-27-1 through 36-27-103, as amended, sections 36-27-120 through 36-27-139, as amended, and sections 36-27B-1 through 36-27B-6. The annual pension cost and total contributions made for Plan years 2007/08 and 2006/07 were as follows: Plan Year 2007/08

Plan Year 2006/07

Annual pension cost

$ 2,773,256

$ 2,533,082

Contributions made

$ 2,773,256

$ 2,533,082

Significant actuarial assumptions used in determining the annual required contribution at September 30, 2007 include: (a) a rate of return on the investment of present and future assets of 8 percent per year compounded annually and (b) projected salary increases depending on age of employee ranging from 4.61 percent to 7.75 percent per year. Of the salary increases assumption, approximately 4.5 percent of the salary increases is attributable to inflation while the remainder is attributable to merit or seniority. The actuarial value of assets was determined using a five year smoothed market method. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at September 30, 2007 was 20 years. Trend information for the Plan: Fiscal Year Ended

Annual Pension Cost (APC)

Percentage of APC Contributed

Net Pension Obligation

September 30, 2005

$2,310,517

100%

-

September 30, 2006

$2,533,082

100%

-

September 30, 2007

$2,773,256

100%

-

63

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) The schedule of funding progress is as follows: (a)

(b)

(c)

(d)

(e)

Actuarial Valuation Date

Actuarial Value of Assets

Actuarial Accrued Liability (AAL)1

Unfunded AAL (UAAL) (b)-(a)

Funded Ratio (a)/(b)

Covered Payroll

(f) UAAL as a % of Covered Payroll (c)/(e)

9/30/20022

$112,779,381

$112,095,458

$

100.6%

$ 38,228,578

-1.8%

9/30/20033

$114,956,154

$119,690,360

$

4,734,206

96.0%

$ 36,792,401

12.9%

9/30/20044

$118,004,522

$123,347,798

$

5,343,276

95.7%

$ 36,896,041

14.5%

9/30/2005

$122,477,322

$138,627,267

$ 16,149,945

88.4%

$ 41,064,856

39.3%

9/30/20065

$127,390,730

$148,706,041

$ 21,315,311

85.7%

$ 41,421,892

51.5%

9/30/2007

$134,013,310

$155,672,217

$ 21,658,908

86.1%

$ 42,240,873

51.3%

(683,923)

1

Reflects liability for cost of living benefit increases granted on or after October 1, 1978.

2

Reflects effect of DROP if unit elected to enroll prior to June 20, 2003.

3

Reflects effect of DROP if unit elected to enroll prior to May 18, 2004.

4

Reflects effect of DROP if unit elected to enroll prior to August 4, 2005.

5

Reflects changes in actuarial assumptions.

Police and Firefighters Retirement Plan – Every member of the police and fire departments of the City, except for civilian employees hired on or after April 15, 1985, certain civilian employees hired before April 15, 1985, and certain policemen and firemen who elected not to participate during a temporary period of discretionary participation, participates in the PFFRP, a singleemployer, defined-benefit pension plan. The PFFRP was established by an Act of the Alabama State Legislature. The Act requires that employees contribute 8% of their earnings to the fund, and the City contributes an actuarially determined amount. Also contributed by the City are 5% of certain Municipal Court fines and 2% of the gross fire insurance premiums collected on policies which cover property within the City of Mobile limits and its police jurisdiction. The City reimburses the PFFRP for the liability for the pre-retirement lump sum death benefit equal to a match of the employee contributions up to $5,000. The PFFRP issues a stand-alone financial report which may be obtained by contacting the Mobile Police and Firefighters’ Retirement Plan Board at Post Office Box 1827, Mobile, AL 366331827. Participants in the PFFRP are entitled to certain benefits depending upon whether sufficient assets are in the fund to cover the benefits.

64

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) Participating members hired prior to March 28, 1990, attaining the earlier of age 50 and completing 20 or more years of service with the last ten years being consecutive are entitled to a monthly benefit of 2.5% of the member’s final three years’ average salary, not to exceed 75% of final average salary. Participating members hired on or after March 28, 1990, attaining the earlier of age 55 and completing 20 or more years of service with the last ten years being consecutive are entitled to a monthly benefit of 2.5% of the member’s final five years’ average salary plus 2.25% of final average salary for each year of service in excess of 20 years, not to exceed 72.5% of final average salary. A member actively employed who is eligible for retirement may elect to remain employed by the City as an Eligible Employee and participate in the Deferred Retirement Option Plan for a period not to exceed 36 months, deferring receipt of retirement benefit until employment with the City is terminated. If a participating member of the police or fire department who has at least 15 years of service becomes permanently physically or mentally disabled other than while performing his/her duties as a uniformed officer, he/she shall be entitled to a disability pension equal to 2.5% of his/her final salary multiplied by his/her years of service, but not more than 60% of his/her final salary. If any participant becomes permanently physically or mentally disabled in the line of duty, he/she shall receive a monthly benefit equal to 45% of his/her final salary. If a member disabled in the line of duty can prove to the Board’s satisfaction that he/she is totally disabled, he/she will be entitled to 60% of his/her final salary. If a member terminates his/her employment for reasons other than disability or death after completing more than 15 years of service but less than 20 years, the last 10 years being consecutive, he/she is entitled to receive a maximum monthly benefit equal to 2.5% of his/her final three years’ average salary multiplied by his/her years’ service beginning the later of his/her termination or his/her 65th birthday. If a member with less than 15 years terminates his/her employment for reasons other than disability or death, he/she shall receive a refund of his/her contributions to the Plan. If a member eligible for retirement dies prior to his/her annuity starting date, his/her eligible family members shall receive a benefit equal to the greater of the 50% survivor’s benefit, or a single sum equal to the lesser of twice the member’s contributions to the Plan or the sum of the member’s contributions plus $5,000. If a member eligible for retirement dies prior to his/her annuity starting date who is not survived by an eligible family member, or if a member not eligible for retirement dies, the beneficiary shall receive a single sum equal to the lesser of twice the member’s contributions to the Plan or the sum of the member’s contributions plus $5,000. The PFFRP Board has the authority to establish and/or amend the obligations to contribute to the Plan of the Plan members and/or the Plan’s sponsor with approval by a majority vote of the city council or like governing body of the City.

65

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) The minimum required contribution as determined by the Act is the sum of the following amounts: (a) (b) (c) (d) (e)

the normal cost for the plan year (determined using the projected unit credit actuarial cost method); the increasing 30-year amortization payment required to amortize the initial unfunded actuarial accrued liability determined as of October 1, 1996, which amortization payment is scheduled to increase at the rate of 4% per annum; the level-dollar 30-year amortization payment required to amortize changes in the unfunded actuarial accrued liability due to plan changes; the level-dollar 10-year amortization payment required to amortize changes in the unfunded actuarial accrued liability due to assumption and method changes; and the level-dollar five-year amortization payment required to amortize changes in the unfunded actuarial accrued liability due to experience.

The significant actuarial assumptions used to compute the contribution requirements are the same as those used to compute the actuarial accrued liability. The required contribution percentages, developed in the most recent actuarial valuations for the plans, to cover minimum pension liabilities are: Determination of minimum required contribution: Normal cost Amortization of the unfunded actuarial accrued liability Total required contributions as a percentage of expected payroll

13.35

%

27.09 40.44

%

Estimated contributions by source: Employees Fire insurance premiums Municipal Court fines City of Mobile

7.34 3.75 0.35 29.00

%

$

2,679,192 1,368,332 127,711 10,579,773

40.44

%

$

14,755,008

The actuarial required contribution for 2007/2008 and 2006/2007 plan years were determined as part of the October 1 actuarial valuations using the projected unit credit actuarial cost method. The actuarial assumptions included (a) 8% investment rate of return and (b) projected salary increase of 5% per year. Both (a) and (b) included an inflation component of 3.5%. The actuarial value of assets was determined using market value. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at October 1, 2007 was 40 years.

66

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) Trend information for the Annual Pension Cost of the Plan for the current and two previous years are as follows: Fiscal Year Ended




September 30, 2006

$3,698,103

100%

September 30, 2007

$2,810,659

100%

-

September 30, 2008

$3,299,299

100%

-

The schedule of funding progress is as follows: (1)

(2)

(3)

(4)

(5)



Actuarial Accrued Liability (AAL)

Unfunded AAL (UAAL) (2)-(1)

Funded Ratio (1)/(2)

Covered Payroll

(6) UAAL as a % of Covered Payroll (3)/(5)

10/1/2003

$ 61,521,737

$184,055,017

$122,533,280

33.4%

$ 29,428,553

416.4%

10/1/2004

$ 61,705,780

$190,094,181

$128,388,401

32.5%

$ 30,974,684

414.5%

10/1/2005

$ 83,819,260

$197,225,687

$113,406,427

42.5%

$ 32,055,235

353.8%

10/1/2006

$ 92,405,268

$205,362,700

$112,957,432

45.0%

$ 33,158,518

340.7%

10/1/2007

$105,396,066

$222,111,577

$116,715,511

47.5%

$ 36,488,843

319.9%

General Municipal Employee Pension Trust Fund – In 1968, a significant curtailment with respect to participation in the GMEPTF occurred, the effect of which rendered the plan virtually inactive. Participation in the pension fund by City employees hired after 1968 was ended. Eligible employees in 1968 were able to elect participation in the Employees’ Retirement System of Alabama plus some combination of benefits under the GMEPTF. The pension fund was insolvent at the date of the change in the plan. The City plans to fund benefits under the GMEPTF as they become due. At September 30, 2008, the Fund had no assets; accordingly, the City will pay benefits as needed from the General Fund. Annually, the City reviews the plan for significant changes in actuarial assumptions. As a result of such a review as of September 30, 2008, the City has determined that an actuarial update is not required due to the discontinuance of participation in the plan, stable actuarial assumptions, the annual diminishment of the estimated pension liability resulting from benefit payments and the relative insignificance of the plan to the financial position and results of operation of the City. Benefits paid by the City under the GMEPTF during the year ended September 30, 2008 was $103,245. 67

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) Transit Workers Pension Plan (TWPP) – On June 30, 2003 the City entered into an agreement and declaration of trust (the trust agreement) with Transit Management of Mobile, Inc. (the contracted Operator), to be retroactively effective to July 1, 2002 which contractually obligated the City (as plan sponsor) to reimburse the contracted Operator for the payment of any pension plan or other employee benefits. The trust agreement establishes the TWPP, a single-employer defined benefit pension plan, for the purpose of providing pension benefits to participants, retired participants and beneficiaries that are equivalent to those benefits that were previously offered under the ERSA. The TWPP covers employees of the contracted Operator (former employees of the City) and was established under the Urban Mass Transportation Act which requires provisions for the preservation of rights, privileges and benefits, including the continuation of pension rights and benefits. All full-time employees of the contracted Operator, other than the general manager, are eligible to participate in the plan. The plan year begins July 1, and ends June 30. The TWPP issues a stand-alone financial report which may be obtained by contacting the Board of Trustees of the TWPP at 1224 West I-65 Service Road South, Mobile, AL 36609. The plan provides retirement benefits as well as death and disability benefits. Members vest after 5 years of service. Employees attaining the earlier of age 60 or completing 25 or more creditable years of service are entitled to an annual retirement benefit, payable monthly for life. Participants receive credited service for all periods of full-time covered employment as well as for the period during which the participant was a member of the ERSA, including periods of purchased creditable service under the ERSA, as well as for the period beginning with the date the participant was no longer an active member of ERSA and ending on June 30, 2002. Members receive payments based on 2.0125% of average monthly compensation (best 3 of the last 10 years) multiplied by credited service, offset by the monthly accrued benefit payable from the ERSA and attributable to service recognized as credited service under this plan. The plan permits early retirement at the age of 60 upon completion of 5 years of creditable service. Active employees who become disabled receive disability benefits which are calculated in the same manner as that used for service retirement benefits. These benefits are paid until the earlier of death or recovery from disability. If an active employee dies, his/her designated beneficiary receives payments, not to exceed the balance of his/her vested contributions plus the member’s annual earnings from the previous fiscal year at date of death. The beneficiary has the option of receiving an initial lump sum or to receive monthly payments until the designated amount is paid in full. If a member’s employment is terminated before the member is eligible for any other benefits under the plan, the member shall receive a single lump sum payment equal to accumulated contributions plus interest credited at 4% per year compounded annually (for participants who have earned less than five years of credited service), or a monthly accrued benefit payable at normal retirement age calculated in the same manner as that used for service retirement benefits (for participants who have earned at least five years of credited service).

68

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) Employees participating in the plan are required to contribute 5% of their earnings to the plan, and the City contributes an actuarially determined amount. Employer contributions required to support the benefits of the system are determined using a level funding approach and consist of a normal contribution, determined using the “entry age normal” method, and an unfunded accrued liability determined by subtracting the present value of prospective employer normal contributions and member contributions together with the current assets held from the present value of total expected benefits to be paid from the system. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of July 1, 2006. The actuarial assumptions included (a) 7% investment rate of return and (b) projected salary increase of 4% per year. Both (a) and (b) included an inflation component of 3%. The actuarial value of assets was determined using market value. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at July 1, 2007 was 25 years. Trend information for the Annual Pension Cost of the Plan for the current and two previous years are as follows: Plan Year Ended




June 30, 2006

$92,693

100%

-

June 30, 2007

$185,010

100%

-

June 30, 2008

$232,679

100%

-

The schedule of funding progress is as follows:


(1)

(2)

(3)

(4)

(5)


Actuarial Accrued Liability (AAL)

Unfunded AAL (UAAL) (2)-(1)

Funded Ratio (1)/(2)

Covered Payroll

(6) UAAL as a % of Covered Payroll (3)/(5)

7/1/2003

$

1,142,784

$

2,527,329

$

1,384,545

45.2%

$

1,940,890

71.3%

7/1/2004

$

1,486,579

$

3,183,378

$

1,696,799

46.7%

$

2,321,101

73.1%

7/1/2005

$

1,640,163

$

3,716,181

$

2,076,018

44.1%

$

2,766,040

75.1%

7/1/2006

$

2,051,366

$

3,747,562

$

1,696,196

54.7%

$

2,733,052

62.1%

7/1/2007

$

2,645,002

$

4,537,095

$

1,892,093

58.3%

$

3,280,678

57.7%

69

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) Other Post-Employment Benefits (OPEBs) The City provides post-employment healthcare coverage, including dental benefits, and life insurance, as allowed by Alabama state laws, to eligible individuals on a pay-as-you-go basis. With respect to retirees, life insurance is equal to $6,000 for former employees and $2,000 for each covered dependent and is a fully-insured benefit provided by an insurance company selected periodically by the City. With respect to disabled employees for the first 12 months of disability prior to age 65, life insurance is equal to the lesser of two times annual salary or $75,000 plus an accidental death and dismemberment benefit of the same amount. The cost of retiree health care, dental care and life insurance benefits is recognized as an expenditure as claims are paid. For fiscal year 2008, those costs totaled approximately $5,440,290 and the liability for incurred and not paid claims totaled $2,461,100. Eligible Individuals: Eligible individuals include all regular, full-time employees of the City and their spouses and dependent children who are covered on the date of the employee’s retirement, disability, or death, as applicable. General employees must be age 60 with at least 10 years of service with the City out of the last 12 years of employment or any age with at least 25 years of service, of which at least the last 10 years were in active employment with the City and at least 20 years were under the Mobile County Merit System. Alternatively, general employees with at least 10 years of service who become eligible for a disability pension under the Retirement System of Alabama (RSA) will also be eligible for coverage. Police and fire employees must be age 50 (if hired prior to March 28, 1990) or age 55 (otherwise) with at least 20 years of service or must become eligible for a disability pension from the police and firefighter retirement plan sponsored by the City. Alternatively, police and fire employees who terminate their employment prior to retirement, but who have earned at least 20 years of service, will also be eligible for coverage, provided that they pay the COBRA premium during the deferral period prior to their retirement. All other employees who terminate their employment are eligible for COBRA coverage. Spouses of deceased employees or retirees are also eligible for COBRA coverage prior to age 65. Required Monthly Premium for Post-Employment Benefit Coverage: Retirees must pay the required monthly premium for either single or family coverage, as applicable. During fiscal year 2008, retirees have been assumed to make monthly contributions equal to $38.00 for single coverage and $101.00 for family coverage. COBRA contributions for the same period have been assumed to be $233.00 per month for single coverage and $593.00 per month for family coverage. Dependents of deceased retirees may pay the monthly retiree rate for up to 12 months after the retiree’s death, but must pay the monthly COBRA premium thereafter. Dependents of employees who either have earned at least 10 years of service or die in the line of duty are eligible to pay the same premium. All other terminated employees and dependents must pay the COBRA premium for continued coverage.

70

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) Annual OPEB Cost and Net OPEB Obligation: The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 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 of time. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation to the OPEB Plan: As of September 30, 2008 Annual OPEB Cost Employer Contributions Interest on Employer Contributions Increase in the Net OPEB Obligation Net OPEB Obligation, beginning of the year

$

26,672,000 (5,584,000) (152,000) 20,936,000 -

Net OPEB Obligation, end of the year

$

20,936,000

Trend information for the OPEB Plan:

Fiscal Year Ended September 30, 2007


Percentage of Annual OPEB Cost Contributed

Net OPEB Obligation

$ 26,672,000

22%

$ 20,936,000

Funding Status and Funding Progress As of September 30, 2007, the actuarial accrued liability for benefits was $196,597,000, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $71,720,000 and the ratio of the unfunded actuarial accrued liability to the covered payroll was 274.1 percent. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare 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. The schedule of funding progress, present trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 71

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) The schedule of funding progress is as follows: (1)

(2)



(3) Actuarial Accrued Liability (AAL)

-

$196,597,000

October 1, 2006

(4)

(5)

Unfunded AAL (UAAL) Funded (2)-(1) Ratio (1)/(2) $ 196,597,000

-

(6)

(7)

Covered Payroll

Net OPEB Obligation

$ 71,720,000

274.1 %

Actuarial Methods and Assumptions: 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 the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions 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. The City used the projected unit credit cost method to determine all liabilities, with the liability for each active employee assumed to accrue over his working lifetime based on elapsed time from his date of hire until retirement. Valuation date

October 1, 2007

Actuarial cost method

Projected unit credit

Amortization method

15 year open period; level-dollar payment

Investment return

5.50% per annum (includes inflation at 3.50% per annum

Healthcare cost trend rate(s):

Medical

Dental

Select rates

10% for 2007/2008 graded to 6.00% for 2015/2016

Not applicable

Ultimate rate

5.50% per annum

3.50% per annum

Deferred Compensation Plans – The City offers its employees a choice of two deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans, available to all City employees, permit them to defer a portion of their salary until future years. One of the plans is administered by a nongovernmental third party and the other by the Retirement Systems of Alabama. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

72

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 10 – RETIREMENT PLANS AND OTHER EMPLOYEE BENEFITS (CONT'D) All amounts of compensation deferred under the plans, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the individuals who participate in the deferred compensation plan and are not subject to the claims of the City’s general creditors. NOTE 11 – RESTRICTED NET ASSETS The following is a summary of the restricted net assets at September 30, 2008: Activity Capital Projects Capital Projects Debt Service Economic Development Grant Programs

Restricted By Enabling Legislation Legal Restriction Legal Restriction Enabling Legislation Grant Agreements

Amount $

662,139 3,862,480 3,338,317 2,482,806 2,735,850

$

13,081,592

NOTE 12 – RENTAL INCOME The City is lessor of a parking garage under a lease agreement effective August 17, 2004 for an initial term of 49 years. The lessee may, at its option, extend the initial term of the lease for two additional periods. The first extension shall be for a term of 15 years on the same terms and conditions of the initial term by giving written notice to the City at least 60 days prior to the end of the initial term. The second extension shall be for a term of 12 years and 2 days, terminating on August 19, 2080 on the same terms and conditions of the initial term by giving written notice to the City at least 60 days prior to the end of the first extension term. The lessee paid a base amount of $5,000,000 which constituted payment in full of all base rent due under the lease for the lease term; therefore the base rental amount is being recognized as revenue over a period of 49 years. The lease allows the lessee to pay all expenses associated with the operation of the parking garage from rentals received. A percentage of the balance remaining after payment of these expenses is to be remitted to the City at the end of each lease year commencing on October 1 of each year. Rental income of $315,206 for fiscal year 2008 is included in the Enterprise Funds – Municipal Parking Garage fund. Also see Note 8 for additional information relating to leased property. On February 3, 2004, the City entered into a ground lease agreement with Alabama Real Estate Holdings, Inc. (AREH) for a portion of Mobile Landing on which AREH agreed to develop a cruise terminal, parking garage and related commercial and retail facilities. Under the agreement, AREH is required in each twelve month period commencing October 1 of each year to pay to the City an amount equal to a specific percentage of excess cash flow as defined in the agreement for the immediately preceding operating year (the “Excess Cash Flow (ECF) Distribution Percentage”). 73

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 12 – RENTAL INCOME (CONT'D) The initial ECF Distribution Percentage is 60%, and payments shall be made commencing on January 1, 2006 and on each January 1st thereafter based on the excess cash flow for the operating year ending on the immediately preceding September 30th and calculated on the basis of the financial statements for such operating year. Concurrently with the making of any such payment, AREH shall deliver to the City a certificate of the chief financial officer of AREH demonstrating its calculation of the amount to be paid. In the event the sum of debt service on the AREH Loan and Operating Expenses is greater than the Gross Project Receipts for any Operating Year (an “Operating Deficiency”), the City must pay such Operating Deficiency to AREH within 30 days of its receipt of the certificate. For the operating year ended September 30, 2008, the amount to be remitted to AREH was $580,199, which is included in accounts payable in the Capital Improvements Fund at September 30, 2008. NOTE 13 – COMMITMENTS AND CONTINGENCIES Joint Governmental Complex On June 26, 1990, the City entered into an operating lease with the County of Mobile (The County) to lease space in a joint governmental complex. Lease payments for the City were $1,313,389 for the year ended September 30, 2008. The above referenced lease agreement is renewable annually and calls for the City to pay a minimum $935,000 in lease payments for each full renewed lease year. The annual rent is adjusted once every two lease years by a factor based on the fee received by the City from the County for the City’s collection of the County’s sales tax. University of South Alabama Cancer Center The City entered into a performance agreement with the University of South Alabama dated December 7, 2004 to pay to the University a sum sufficient to pay debt service on $6 million (plus interest at 5% per annum) of the total construction and start-up costs of the Cancer Center. The funds will be paid over a ten year period commencing August 1, 2005. In order to provide for a method of paying the sums agreed, the City adopted Ordinance No. 34-055 effective December 7, 2004 to amend the tax rate imposed on hotels, motels, tourist courts, tourist cabins, lodging houses and rooming houses (the Lodging Tax) within the City, in addition to all license taxes already imposed upon them, a license tax equal to 8% of gross receipts and that in the Police Jurisdiction to an additional 3% of gross receipts. The City has specially and irrevocably pledged this increase for the payment of the principal and interest to the University.

74

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 13 – COMMITMENTS AND CONTINGENCIES (CONT'D) Future payments under this agreement are due as follows: Amount Representing Principal

Fiscal Year Ending September 30 2009 2010 2011 2012 2013 2014 Totals


Total Future Commitments

$

600,000 600,000 600,000 600,000 600,000 600,000

$

163,671 163,671 163,671 163,671 163,671 163,671

$

763,671 763,671 763,671 763,671 763,671 763,671

$

3,600,000

$

982,026

$ 4,582,026

Industrial Development Board – Austal USA, LLC On April 8, 2005, the City entered into a funding agreement with the Industrial Development Board of the City of Mobile (the Board) under which the City will provide financial assistance in connection with a proposed economic development project for the benefit of Austal USA, LLC. The City agreed to pay the Board the sum of $2,500,000 to pay costs of the project, plus an amount equal to the interest on the loan incurred by the Board, over approximately five years with semi-annual payments commencing August 15, 2005. Future payments under this commitment are due as follows: Fiscal Year Ending September 30 2009

Amount Representing Principal


Total Future Commitments

$

$

$

324,727

4,881

329,608

ThyssenKrupp Steel and Stainless USA, LLC (ThyssenKrupp) On May 14, 2007, the City entered into a local party funding and participation agreement among the State of Alabama, the Alabama Department of Transportation, the City, Mobile County, and the Industrial Development Board regarding the establishment of a steel manufacturing plant by ThyssenKrupp in north Mobile County. The City has agreed to contribute up to a maximum contribution of $33.5 million to the project’s incentive fund as an Economic Development Payment to be funded through issuance of General Obligation Warrants (See Note 8).

75

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 13 – COMMITMENTS AND CONTINGENCIES (CONT'D) Self-Insured Liability - Legal The City of Mobile is a defendant in various suits and has been notified of claims against it, said suits and claims arising from alleged defects in sidewalks, streets, public drainage facilities and other public ways, or arising from alleged negligent operation of motor vehicles and other alleged tortuous misconduct on the part of City employees. The City attorney has reviewed these claims and lawsuits in order to evaluate the likelihood of an unfavorable outcome to the City and to arrive at an estimate, if any, of the amount or range of potential loss to the City. As a result of such review, the various claims and lawsuits have been categorized into “probable,” “reasonably possible” and “remote” contingencies. According to the City attorney, loss contingencies categorized as “probable” range between $415,874 and $466,273. Consequently, the City has accrued at September 30, 2008, the lesser of the range equal to $415,874. Loss contingencies categorized as “reasonably possible” range between $425,000 and $1,000,000. NOTE 14 – RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The claim liabilities are reported if information prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The City is self-insured for claims and judgments, general liability, and general automobile liability. As more fully discussed in Note 13, the City has determined and recorded an estimate of $415,874 for loss contingencies relating to claims and judgments. Claim settlement and loss expenses are accrued for estimated reported claims. Past experience indicates that incurred but not reported claims, in aggregate, do not represent a material amount and, therefore, have not been accrued at year-end. The City is also self-insured for workers’ compensation claims up to $500,000 per accident and for employee health insurance claims. An excess coverage insurance policy covers individual claims in excess of $500,000 per accident for workers’ compensation claims. The City has contracted with outside parties for claims administration. The estimated liability for workers’ compensation claims as of September 30, 2008 is $7,148,114. The liability for employee health insurance claims includes an estimated amount for claims that have been incurred but have not been reported. The present value of the estimated liability for employee health claims as of September 30, 2008 is $1,704,746.

76

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 14 – RISK MANAGEMENT (CONT'D) The schedule below presents the changes in claims liabilities for the past two years for the City’s self-insured liabilities: Current-Year Claims and Changes in Estimates

Beginning-ofFiscal-Year Liability Claims and judgments, general liability and general automotive liability 2006-2007 2007-2008

End-ofFiscal-Year Liability

Claim Payments

$

507,000 420,734

$

892,105 1,695,559

$

978,371 1,700,419

$

420,734 415,874

Employee Health 2006-2007 2007-2008

$

1,555,173 1,763,630

$

20,501,536 19,415,131

$

20,293,079 19,474,015

$

1,763,630 1,704,746

Workers' Compensation 2006-2007 2007-2008

$

8,143,885 8,143,885

$

1,849,801 1,327,558

$

1,849,801 2,323,329

$

8,143,885 7,148,114

NOTE 15 – FUND DEFICITS OF NON-MAJOR FUNDS Deficits in net assets/fund balance of non-major funds at September 30, 2008, are as follows: Non-major Enterprise Fund Firemedics Internal Service Fund Employee Health Fund

$

152,043

$ 2,843,511

NOTE 16 – MUNICIPAL SOLID WASTE LANDFILLS The City has in operation two solid waste landfills. The responsibility for annual operation and future closure and postclosure care costs of one of the landfills has been transferred to another entity. At September 30, 2008, the City believes that this entity is financially capable of meeting the closure and postclosure care obligations when they are due. Accordingly, a liability for such future costs has not been established. The City owns a second landfill site which has reached full capacity. State and federal laws and regulations require the City to perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. The $1,007,459 reported in the Statement of Net Assets as a landfill postclosure liability at September 30, 2008 represents the estimated current cost of all postclosure care. However, due to changes in technology, laws or regulations, these costs may change in the future.

77

CITY OF MOBILE, ALABAMA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 17 – IRREVOCABLE LETTER OF CREDIT The City entered into an Irrevocable Letter of Credit on May 14, 2002 with their 2002 Limited Obligation Tax Increment Warrants’ Paying Agent in the amount of $11,148,326 for the benefit of the holders of the $10,655,000 City of Mobile, Alabama Limited Obligation Tax Increment Warrants, Series 2002 (Warrants) issued by the City pursuant to an Ordinance duly adopted by the City on May 7, 2002. The Letter of Credit can only be used by the City to make a drawing to pay the amount of principal and/or interest due on the Warrants or redemption premium of the Warrants. The Letter of Credit was renewed on May 15, 2008 with the terms and conditions requiring an annual renewal of the agreement.

78

RSI - GENERAL FUND

Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual - General Fund Notes to Schedule of Revenues, Expenditures, and Changes in Fund

REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN THE MD&A

CITY OF MOBILE, ALABAMA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND For the Year Ended September 30, 2008

Actual (Budgetary Basis)

Budgeted Amounts Original Final Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures State and federal assistance Interest Miscellaneous (other) Total Expenditures Departmental General government City Clerk Mayor's office City Council City Smart City Hall Overhead Archives Legal Urban development Administrative services Human resources Municipal info. system Geographical info. system Telecommunications Total general government Economic development Mobile film office Historic development Neighborhood and community services Total economic development Public safety Police Fire Municipal court Mobile Metro Jail Animal shelter Total public safety

$

117,710,119 31,105,436 1,050,000 9,060,749 3,972,500 2,020,000 125,000 165,043,804

$

116,044,511 33,231,884 583,501 9,939,646 4,808,545 1,252,928 50,000 165,911,015

$

118,734,721 33,820,585 539,578 9,850,026 4,968,281 6,929,764 1,208,934 631,577 176,683,466

Variance with Final Budget Positive/ (Negative) $

2,690,210 588,701 (43,923) (89,620) 159,736 6,929,764 (43,994) 581,577 10,772,451

589,131 818,977 602,951 262,263 4,048,439 329,441 1,464,242 4,167,936 287,103 416,950 3,144,742 794,677 913,206 17,840,058

598,733 826,475 602,951 265,507 4,049,730 334,664 1,479,706 4,365,166 289,499 423,038 3,187,023 806,398 913,206 18,142,096

537,244 682,150 614,903 219,224 4,139,896 305,693 1,296,524 3,672,245 292,314 389,926 3,053,691 715,125 855,301 16,774,236

61,489 144,325 (11,952) 46,283 (90,166) 28,971 183,182 692,921 (2,815) 33,112 133,332 91,273 57,905 1,367,860

189,519 315,428

192,059 320,640

179,399 253,589

12,660 67,051

577,653 1,082,600

583,570 1,096,269

470,150 903,138

113,420 193,131

46,213,779 28,563,485 2,290,659 6,700,000 707,086 84,475,009

47,354,190 29,288,871 2,336,214 7,483,524 723,312 87,186,111

44,563,076 29,768,182 2,131,148 7,434,996 603,455 84,500,857

2,791,114 (479,311) 205,066 48,528 119,857 2,685,254

79

CITY OF MOBILE, ALABAMA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (CONT'D) GENERAL FUND For the Year Ended September 30, 2008

Budgeted Amounts Original Final


Variance with Final Budget Positive/ (Negative)

Departmental (Cont'd) Public works Public service administration Flood control Administration Concrete and sidewalk repair Right-of-way maintenance Asphalt street repair Street sweeping Dredge Storm drain & heavy equip. Landfill Solid waste Trash Electrical Engineering Real estate office Real estate management Keep Mobile Beautiful Municipal garage Architectural engineering Environmental services Public buildings Mechanical systems Hank Aaron Stadium Traffic engineering Total public works

197,809 1,331,835 1,076,858 1,578,768 878,081 1,142,616 776,568 845,549 1,468,186 3,174,859 3,607,855 3,646,172 2,004,446 1,612,632 232,815 155,801 353,890 8,883,946 1,235,810 562,996 2,104,400 1,618,261 6,000 1,250,441 39,746,594

200,921 1,360,682 1,095,076 1,616,778 895,690 1,168,565 786,729 862,931 1,500,207 3,182,855 3,727,158 3,712,057 2,069,266 1,640,560 237,754 158,575 357,952 10,276,239 1,252,544 570,107 2,139,002 1,642,282 6,000 1,276,695 41,736,625

222,467 1,000,978 973,714 1,292,707 726,886 824,755 653,096 676,980 1,167,378 3,018,772 3,099,420 3,905,082 2,178,815 1,398,360 363,939 325,542 9,356,971 1,117,529 382,869 2,036,988 1,707,518 1,483,570 37,914,336

(21,546) 359,704 121,362 324,071 168,804 343,810 133,633 185,951 332,829 164,083 627,738 (193,025) (109,549) 242,200 (126,185) (166,967) 357,952 919,268 135,015 187,238 102,014 (65,236) 6,000 (206,875) 3,822,289

Culture and recreation Parks and recreation director Community activities Mobile Museum of Art History Museum Parks maintenance Recreation - athletics Recreation Special events Special activities Parks and cemeteries Baseball stadium Total culture and recreation

148,506 137,161 2,053,093 1,463,105 3,995,775 816,713 3,627,519 349,311 2,324,873 14,916,056

150,859 137,161 2,086,416 1,463,105 4,156,827 837,545 3,495,854 389,715 2,333,800 15,051,282

145,574 134,646 1,886,854 3,400,063 1,436,823 755,548 2,920,333 377,069 2,130,655 3,940 13,191,505

5,285 2,515 199,562 (1,936,958) 2,720,004 81,997 575,521 12,646 203,145 (3,940) 1,859,777

271,324 264,483 398,865 823,130 417,858 361,986 212,389 204,975 2,015,713 4,970,723

274,411 269,300 407,293 839,684 426,866 367,842 216,113 206,904 2,054,830 5,063,243

262,088 210,686 385,557 689,508 413,087 339,813 208,059 187,228 1,901,945 4,597,971

Finance Finance administration Budget Purchasing Accounting Inventory control Treasury Payroll Police and fire pension Revenue Total finance

12,323 58,614 21,736 150,176 13,779 28,029 8,054 19,676 152,885 465,272

80

CITY OF MOBILE, ALABAMA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (CONT'D) GENERAL FUND For the Year Ended September 30, 2008 Actual (Budgetary Basis)

Budgeted Amounts Original Final Attrition savings Reserve for retirements Total departmental expenditures

1,452,307

(12,996,929) 47,693

156,778,697

159,334,350

(2,555,653)

1,005,084 600,000

1,055,188 600,000

1,053,186 600,000

-

2,400,000 4,005,084

3,147,492 4,802,680

2,763,705 4,416,891

383,787 385,789

7,145 454,520 43,608 505,273

7,152 480,864 43,608 531,624

7,142 432,876 42,897 482,915

10 47,988 711 48,709

Agencies Mobile Museum Board Public Library Total agencies

6,012,104 6,012,104

6,172,104 6,172,104

6,172,104 6,172,104

Employee cost Retired employees insurance Employee education Workmen's compensation Unemployment compensation Employees' pension Police and firefighter's retirement Total employee cost

4,408,400 80,000 2,000,000 65,000 120,000 6,673,400

4,377,938 45,000 2,273,096 65,000 108,426 6,869,460

4,369,397 2,273,096 58,566 30,070 7,713,234 14,444,363

6,434 (30,070) (7,604,808) (7,574,903)

1,750,000 3,583,882 440,336 1,538,010 105,000 7,417,228

1,950,000 3,580,882 443,336 1,557,135 105,000 7,636,353

1,427,128 5,136,012 438,097 2,019,635 92,906 3,083,940 343,170 12,540,888

522,872 (1,555,130) 5,239 (462,500) (92,906) (3,083,940) (238,170) (4,904,535)

24,613,089 174,164,705

26,012,221 182,790,918

38,057,161 197,391,511

(12,044,940) (14,600,593)

(16,879,903)

(20,708,045)

25,373,044

Nondepartmental Mandated activities Personnel Board Board of Health Juvenile court and youth center Total mandated activities Joint activities Board of equalization Emergency management Mobile legislative delegation Total joint activities

Other Fire insurance Contractual Dues Organizations Athletic fund State and federal projects General miscellaneous Total other Total nondepartmental expenditures Total expenditures Excess (deficiency) of revenues over expenditures

(14,979,424) 1,500,000

(12,996,929) 1,500,000

149,551,616


(9,120,901)

$

2,002

8,541 45,000 -

81

CITY OF MOBILE, ALABAMA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (CONT'D) GENERAL FUND For the Year Ended September 30, 2008

Budgeted Amounts Original Final Other financing sources (uses): Transfers in Transfers out Insurance recoveries Transfer to grants Sales of general capital assets Total other financing sources (uses)

25,135,433 (25,877,688) (115,000) (857,255)

Excess (deficiency) of revenues and other financing sources (uses) expenditures and other financing uses Fund balances Beginning of the year End of the year

(9,978,156)

$

(4,302,118) (14,280,274)

$



32,870,720 (20,548,906) (175,000) -

34,719,008 (16,155,109) 448,536 (62,921) 2,233

1,848,288 4,393,797 448,536 112,079 2,233

12,146,814

18,951,747

6,804,933

(4,733,089)

(1,756,298)

(26,413,364) (31,146,453)

$

$

(2,315,968)

17,403,530 15,647,232

Adjustments necessary to convert the results of operations at the end of the year on the budget basis to the modified accrual basis are as follows: Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Encumbrances outstanding at September 30, 2008 Encumbrances outstanding at September 30, 2007 Net change in fund balance per the statement of revenues, expenditures, and changes in fund balance

$

(1,756,298) 1,220,923 (794,814)

$

(1,330,189)

82

CITY OF MOBILE, ALABAMA NOTES TO SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND For the Year Ended September 30, 2008 NOTE 1 - BUDGET RECONCILIATION The reported budgetary data represents the final appropriated budget after amendments adopted by the City Council. An appropriated budget was legally adopted for the General Fund on the same modified-accrual basis used to present actual revenue and expenditures, except, for budgetary purposes, current year encumbrances are treated as expenditures. The following is a summary of the reconciliation of generally accepted accounting principles (GAAP) expenditures to budgetary expenditures for the fiscal year ended September 30, 2008: GAAP expenditures

$ 196,965,402

Encumbrances at September 30, 2008 September 30, 2007 Budgetary expenditures

1,220,923 (794,814) $ 197,391,511

For the fiscal year ended September 30, 2008, general fund expenditures exceeded budgetary appropriations by $14,600,593. NOTE 2 - FUND BALANCE Following is a reconciliation of the General Fund's fund balance-budgetary basis to fund balance - generally accepted accounting principles (GAAP) basis: Fund balance - budgetary basis at September 30, 2008

$ 15,647,232

Add encumbrances Function General government Economic development

116,835 20,046

Public safety

263,942

Public works

681,587


106,592

Finance Other

26,297 5,624

Total encumbrances Fund balance - GAAP basis at September 30, 2008

1,220,923 $ 16,868,155

83

GOVERNMENTAL FUNDS - NON-MAJOR

Governmental funds are those through which most governmental functions of the City are financed. Special Revenue Funds - These funds are used to account for the proceeds of specific revenue sources (other than for major capital projects) requiring separate accounting because of legal or regulatory provisions or administrative action. Debt Service Funds - These funds are used to account for assets held for the repayment of principal and interest on the City's outstanding bond issues. Capital Projects Funds - These funds are used to account for financial resources for the acquisition or construction of major capital facilities (other than those financed by proprietary fund types).

COMBINING FINANCIAL STATEMENTS

CITY OF MOBILE, ALABAMA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS (BY FUND TYPE) September 30, 2008

ASSETS Cash, equity in pooled cash and investments Receivables Total assets LIABILITIES Accounts payable and accrued liabilities Due to other funds Total liabilities FUND BALANCES Reserved for: Encumbrances Economic development Road and bridge repair Road and bridge construction Unreserved, reported in: Capital projects funds Debt service funds Total fund balances Total liabilities and fund balances

Special Revenue Funds

Debt Service Funds

Capital Projects Funds

Total Non-major Governmental Funds

$ 3,765,017 378,973 $ 4,143,990

$ 3,338,317 $ 3,338,317

$ 26,268,024 794,294 $ 27,062,318

$ 33,371,358 1,173,267 $ 34,544,625

$

$

$

273,876 700,000 973,876

$ 1,110,300 725,965 1,836,265

65,654 -

65,654 2,397,080 352,619 531,902

836,424 25,965 862,389

-

2,397,080 352,619 531,902

-

3,281,601

3,338,317 3,338,317

26,022,788 26,088,442

26,022,788 3,338,317 32,708,360

$ 4,143,990

$ 3,338,317

$ 27,062,318

$ 34,544,625

84

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (BY FUND TYPE) For the Year Ended September 30, 2008 Special Revenue Funds Revenues Taxes Licenses and permits State and federal assistance Interest Other Total revenues Expenditures Current: Nondepartmental Capital outlay Debt service: Principal Interest and fees Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Proceeds from issuance of warrants Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balances, beginning of the year Fund balance, end of the year

$ 6,075,393 102,972 2,919 6,181,284

Debt Service Funds

$

187,939 187,939

Capital Projects Funds

Total Non-major Governmental Funds

$ 9,699,394 2,501,126 1,439,727 594,493 1,250,060 15,484,800

$ 15,774,787 2,501,126 1,439,727 885,404 1,252,979 21,854,023

3,623,513 1,729,382

-

2,881,754 9,316,103

6,505,267 11,045,485

5,352,895

9,776,796 9,552,267 19,329,063

33,789,705 25,550,186 71,537,748

43,566,501 35,102,453 96,219,706

(19,141,124)

(56,052,948)

(74,365,683)

(1,895,078)

21,407,840 (1,616,690)

91,390,000 (29,793,208)

91,390,000 21,407,840 (33,304,976)

(1,895,078) (1,066,689)

19,791,150 650,026

61,596,792 5,543,844

79,492,864 5,127,181

2,688,291 $ 3,338,317

20,544,598 $ 26,088,442

27,581,179 $ 32,708,360

828,389

4,348,290 $ 3,281,601

85

NON-MAJOR SPECIAL REVENUE FUNDS

·

Four-cent Gasoline Tax - This fund accounts for tax revenues to be used to pay for street resurfacing.

·

Five-cent Gasoline Tax - This fund accounts for tax revenues to be used to pay the cost of construction, improvement, maintenance and supervision of highways, bridges and streets, including the retirement of bonds for the payment of which such revenues have been or may hereafter be pledged.

·

Seven-cent Gasoline Tax - This fund accounts for tax revenues to be used to pay the cost of electricity for street lights and the cost of operating the concrete and storm sewer maintenance, street sweeping, street repair, ditch cleaning, pipe-laying and heavy equipment departments.

·

Fuel Inspection Fees - This fund accounts for a special inspection fee levied by the State of Alabama to be used for street improvements and City planning purposes.

·

Economic Development - This fund is used to account for activities funded by recaptured funds from refinanced second mortgages for economic development planning from the Mobile Housing Board.

·

Tax Increment - This fund is used to account for revenues generated by tax collections under the Tax Increment Financing Plan and used to pay for redevelopment projects in the downtown area.

CITY OF MOBILE, ALABAMA COMBINING BALANCE SHEET NON-MAJOR SPECIAL REVENUE FUNDS September 30, 2008 Gasoline Tax Funds 5 Cent 7 Cent Gasoline Gasoline Tax Tax

4 Cent Gasoline Tax ASSETS Cash, equity in pooled cash and investments Receivables Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities FUND BALANCES Reserved for: Economic development Road and bridge repair Road and bridge construction Total fund balances Total liabilities and fund balances

$ $

$

856,667 115,519 972,186

$

619,567 619,567

$

$

352,619 352,619 $

972,186

475,005 56,897 531,902

-

$ $

$

531,902 531,902 $

531,902

199,142 199,142

$ 1,331,672 371,558 $ 1,703,230

180,592 18,550 199,142

$

$

Total

199,142

800,159 18,550 818,709

352,619 531,902 884,521 $ 1,703,230

86

Fuel Inspection Fees $ $

$

Economic Development

7,415 7,415

$

7,415 7,415

$

$

7,415

200

$

Total

$ 2,410,850 $ 2,410,850

$ 3,765,017 378,973 $ 4,143,990

$

$

200

36,065 36,065

22,295 22,295

2,374,785 2,374,785

2,397,080 352,619 531,902 3,281,601

22,495

$ 2,410,850

$ 4,143,990

-

$

22,495 22,495

Tax Increment

836,424 25,965 862,389

87

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS For the Year Ended September 30, 2008 Gasoline Tax Funds 5 Cent 7 Cent Gasoline Gasoline Tax Tax

4 Cent Gasoline Tax Revenues Taxes Interest Loan repayments Total revenues

$ 1,311,455 1,311,455

Expenditures Nondepartmental Economic development Gas Electricity Total nondepartmental Capital outlay Construction Total capital outlay Total expenditures Excess (deficiency) of revenues over expenditures

$ 4,211,940 4,211,940

62,047 1,910,644 1,972,691

62,047 1,910,644 1,972,691

1,729,382 1,729,382 1,729,382

-

1,972,691

1,729,382 1,729,382 3,702,073

644,551

283,243

509,867

(600,000)

(283,243)

(883,243)

(417,927)

$

$ 2,255,934 2,255,934

-

-

Net change in fund balance

644,551 644,551

-

(417,927)

Other financing sources (uses) Transfers out

Fund balances, beginning of the year Fund balance, end of the year

$

Total

770,546 352,619

44,551

$

487,351 531,902

-

$

-

(373,376)

$

1,257,897 884,521

88

Fuel Inspection Fees $

Tax Increment

Total

515 2,919 3,434

$ 1,778,031 102,457 1,880,488

$ 6,075,393 102,972 2,919 6,181,284

-

25,225 25,225

1,625,597 1,625,597

1,650,822 62,047 1,910,644 3,623,513

-

25,225

1,625,597

1,729,382 1,729,382 5,352,895

254,891

828,389

85,422 85,422

Economic Development $

85,422

(21,791)

(85,422)

-

-

$

-

-

(21,791)

$

44,086 22,295

(926,413)

(1,895,078)

(671,522)

(1,066,689)

3,046,307 $ 2,374,785

4,348,290 $ 3,281,601

89

CITY OF MOBILE, ALABAMA SCHEDULE OF CAPITAL PROJECTS BY PROGRAM AND DISPOSITION SPECIAL REVENUE FUNDS Beginning of Project through September 30, 2008

Program/Project Name 4 Cent Gasoline Tax Fund Resurfacing projects Install Raised Pavement Markers Resurface - Mobile Pay as You Go Total 4 cent gasoline tax fund Total special revenue funds projects

Project Cost Prior Years

Current Activity

Total Project Cost to September 30, 2008

$

1,378,170 19,974 1,398,144

$

1,627,343 97,422 4,617 1,729,382

$

3,005,513 97,422 24,591 3,127,526

$

1,398,144

$

1,729,382

$

3,127,526

90

Disposition In Progress Completed Expensed Capitalized Expensed Capitalized $

-

$

-

$

-

$

3,005,513 97,422 24,591 3,127,526

$

-

$

-

$

-

$

3,127,526

91

NON-MAJOR DEBT SERVICE FUNDS

·

1996 General Obligation Refunding Warrants - This fund is used to service the remaining debt outstanding on the 1996 General Obligation Refunding Warrants.

·

1998 General Obligation Refunding and Improvement Warrants - This fund is used to service the remaining debt outstanding on the 1998 General Obligation Refunding and Improvement Warrants.

·

1999 General Obligation Private Placement Warrants - This fund is used to service the remaining debt outstanding on the 1999 General Obligation Private Placement Warrants.

·

1999 General Obligation Private Placement Warrants (I.P.S.C.O.) - This fund is used to service the remaining debt outstanding on the 1999 General Obligation Private Placement Warrants (I.P.S.C.O.).

·

2000 General Obligation Capital Projects Warrants - This fund is used to service the remaining debt outstanding on the 2000 General Obligation Capital Improvement Warrants.

·

2001 General Obligation Refunding and School Warrants - This fund is used to service the remaining debt outstanding on the 2001 General Obligation Refunding and School Warrants.

·

Bank Service Charges - Various Issues - This fund is used to pay agent and trustee fees for defeased debt.

·

2002 General Obligation Refunding Warrants - This fund is used to service the remaining debt outstanding on the 2002 General Obligation Refunding Warrants.

·

2002 Limited Obligation Tax Increment Warrants - This fund is used to service the remaining debt outstanding on the 2002 Limited Obligation Tax Increment Warrants.

·

2006 General Obligation Refunding and Improvement Warrants - This fund is used to service the remaining debt outstanding on the 2006 General Obligation Refunding and Improvement Warrants.

·

2006 General Obligation Private Placement Warrants - This fund is used to service the remaining debt outstanding on the 2006 General Obligation Private Placement Warrants.

·

2008 General Obligation Capital Improvement Warrants - This fund is used to service the remaining debt outstanding on the 2008, 2008B and 2008C General Obligation Capital Improvement Warrants.

CITY OF MOBILE, ALABAMA COMBINING BALANCE SHEET NON-MAJOR DEBT SERVICE FUNDS September 30, 2008 1998 General Obligation Refunding and Improvement Warrants

1996 General Obligation Refunding Warrants

1999 General Obligation Private Placement Warrants (I.P.S.C.O.)

1999 General Obligation Private Placement Warrants

2000 General Obligation Capital Projects Warrants

ASSETS Cash, equity in pooled cash and investments

$

7,935

$

643,054

$

31,537

$

16,386

$

-

FUND BALANCES Fund balances unreserved Designated for debt service

$

7,935

$

643,054

$

31,537

$

16,386

$

-

92


2002 Limited Obligation Tax Increment Warrants

2006 General Obligation Refunding and Improvement Warrants


2008 General Obligation Capital Improvement Warrants

$ 91,066

$ 763,097

$

-

$ 1,615,934

$

2,946

$

239

$ 3,338,317

$ 91,066

$ 763,097

$

-

$ 1,615,934

$

2,946

$

239

$ 3,338,317

2001 General Obligation Refunding & School Warrants

Bank Service Charges Various Issues

$ 166,123

$ 166,123

Total

93

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR DEBT SERVICE FUNDS For the Year Ended September 30, 2008 1998 General Obligation Refunding and Improvement Warrants

1996 General Obligation Refunding Warrants Revenues Interest income Total revenues

$

Expenditures Principal payments on bonds and warrants Interest on bonds and warrants Bank fees Total expenditures

830 830

Net change in fund balance

248 248

$

2,969 2,969

$

-

-

315,000

-

-

749,819 2,046,615

-

24,219 339,219

-

(2,014,086)

248

2,108 2,108

(336,250)

(2,108)

-

4,140,000 (1,616,690)

-

338,644 -

-

-

2,523,310

-

338,644

-

830 $

$

1,296,796

830

Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses)

32,529 32,529

2000 General Obligation Capital Projects Warrants

-

Excess (deficiency) of revenues over expenditures

Fund balance, beginning Fund balances, ending

$

1999 General Obligation Private Placement Warrants (I.P.S.C.O.)


7,105 7,935

509,224 $

133,830 643,054

248 $

31,289 31,537

2,394 $

13,992 16,386

(2,108) 2,108 $

-

94

2001 General Obligation Refunding & School Warrants $

17,249 17,249

Bank Service Charges Various Issues $

2,790 2,790

1,570,000

-

784,448 2,354,448

2,989 2,989

(2,337,199)

(199)

52,501 52,501

$

-

$

77,780 77,780

2006 General Obligation Private Placement Warrants $

804 804

2008 General Obligation Capital Improvement Warrants $

239 239

Total $

187,939 187,939

3,795,000

420,000

2,115,000

265,000

-

9,776,796

3,206,846 7,001,846

506,413 926,413

2,902,525 5,017,525

126,450 391,450

1,246,450 1,246,450

9,549,278 2,989 19,329,063

(6,949,345)

(926,413)

(4,939,745)

(390,646)

(1,246,211)

(19,141,124)

2,352,517 -

-

6,998,091 -

926,413 -

5,014,275 -

391,450 -

1,246,450 -

21,407,840 (1,616,690)

2,352,517

-

6,998,091

926,413

5,014,275

391,450

1,246,450

(19,791,150)

74,530

804

239

650,026

239

2,688,291 $ 3,338,317

15,318 $

2002 General Obligation Refunding Warrants $



150,805 166,123

(199) $

91,265 91,066

48,746 $

714,351 763,097

$

-

$

1,541,404 1,615,934

$

2,142 2,946

$

95

NON-MAJOR CAPITAL PROJECTS FUNDS

·

Strategic Plan - This fund is used to provide for several special projects. The majority of this fund is financed by a portion of the gasoline tax and sales tax.

·

1995 Capital Projects - This fund is used to provide for several projects: the closure of Bates Field Landfill, the upgrading of Azalea City Golf Course facilities, engineering for Magnolia Grove Road, a tennis court parking lot, purchase of the Touchdown building and improvements to Airport Boulevard and the garage work area. This fund was financed by the 1995 General Obligation Capital Improvement Warrants.

·

1996 General Obligation Capital Projects - This fund is used to provide for several projects; the renovation of Ladd Memorial Stadium, several drainage projects, street improvements, and water quality studies. This fund was financed by the 1996 General Obligation Capital Improvement Warrants.

·

Municipal Government Capital Improvements - This fund is used for several projects including the Mobile Regional Senior Community Center and various building maintenance projects.

·

1998 General Obligation Capital Projects - This fund is used to provide for several projects including modular buildings at Strickland Youth Center, and the construction and installation of certain improvements to the City's storm water drainage system.

·

1998 General Obligation Refunding and Capital Projects - This fund is used to provide for certain capital improvement projects, including addition to Public Library, Fine Arts Museum, GM&O Terminal renovations, Public Safety buildings, and City/County Misdemeanor facility.

·

1998 General Obligation Private Placement Projects - This fund is to provide for the acquisition of a new financial system and work order system.

·

1999 General Obligation Private Placement (I.P.S.C.O.) - This fund is to provide for site and infrastructure improvements to be constructed and installed by the Industrial Development Board of Mobile County at the site of a facility that produces and manufacturers steel products by I.P.S.C.O.

·

2000 Capital Projects - This fund is used to provide for improvements to the City's parks and recreational facilities and for storm water drainage and sewer improvements.

·

2002 Limited Obligation Tax Increment Capital Projects -This fund is used to acquire certain land and finance, construct and install certain public improvements located within the Tax Increment District.

·

Flood Management - This fund is used to hold funds collected from developers to help defray the cost of future drainage in an area. This fund was established by ordinance passed by the City Council.

·

2008B General Obligation Capital Improvement Projects - This fund is used to provide for the certain capital improvement projects.

·

2008C General Obligation Capital Improvement Projects - This fund is used to pay the cost of certain improvements to the Alabama Cruise Terminal.

CITY OF MOBILE, ALABAMA COMBINING BALANCE SHEET NON-MAJOR CAPITAL PROJECT FUNDS September 30, 2008

1995 Capital Projects

Strategic Plan ASSETS Cash, equity in pooled cash and investments Accounts receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Contracts payable Retainage payable Accounts payable

1998 General Obligation Capital Projects

Municipal Government Capital Improvements

$

4,843,276 765,077

$

54,323 -

$

458,235 -

$

2,592,761 29,217

$

2,971,566 -

$

5,608,353

$

54,323

$

458,235

$

2,621,978

$

2,971,566

$

38,399 38,399

$

-

$

$

63,578 256 63,834

$

35,769 35,769

Due to other funds Total liabilities Fund balances Reserved for encumbrances Unreserved Total fund balances Total liabilities and fund balances


700,000

-

-

-

-

738,399

-

-

63,834

35,769

31,627 2,526,517 2,558,144

26,646 2,909,151 2,935,797

4,869,954 4,869,954 $

-

5,608,353

54,323 54,323 $

54,323

458,235 458,235 $

458,235

$

2,621,978

$

2,971,566

96


2002 Limited Obligation Tax Increment Capital Projects

82,572 -

$ 2,141,888 -

$ 156,815 -

$

83,540 -

$ 7,949,645 -

$ 3,010,386 -

$ 26,268,024 794,294

82,572

$ 2,141,888

$ 156,815

$

83,540

$ 7,949,645

$ 3,010,386

$ 27,062,318

$

$

$

$

$

$

1998 General Obligation Refunding and Capital Projects

1998 General Obligation Private Placement Projects

1999 General Obligation Private Placement (IPSCO)

$1,923,001 -

$

16

$

$1,923,001

$

16

$

$

$

477 17,106 17,583

-

-

-

$

-

-

-

17,583

-

-

5,000 1,900,418 1,905,418

-

$1,923,001

16 16 $

16

$

102,657 102,657 -

5,148 5,148

Flood Management

-

2008B General Obligation Capital Improvement Projects

2008C General Obligation Capital Improvement Projects

Total

9,982 9,982

504 504

-

-

-

102,657

5,148

-

9,982

504

973,876

82,572 82,572

2,039,231 2,039,231

151,667 151,667

83,540 83,540

2,381 7,937,282 7,939,663

3,009,882 3,009,882

65,654 26,022,788 26,088,442

82,572

$ 2,141,888

$ 156,815

83,540

$ 7,949,645

$ 3,010,386

$ 27,062,318

$

-

256,514 17,362 273,876 700,000

97

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR CAPITAL PROJECT FUNDS September 30, 2008


Strategic Plan Revenues Sales tax $ Lease/rental - tax Motor fuel - tax Room - tax Business license State and federal assistance Interest Other Total revenues

$

760 760

763,671 -

12,757 -


Municipal Government Capital Improvements $

12,757

1,439,727 90,729 -

$

1,530,456

106,914 106,914

-

-

99,864

-

88,406 2,224,592 113,023 359,044 98,823 2,883,888 3,647,559

25,343 2,790 28,133 28,133

-

1,539 123,391 1,685 3,363 216,232 238,619 1,030,998 1,615,827 1,715,691

-

9,903,517

(27,373)

(9,957,589)

$

$

-

13,551,076

Expenditures Current Nondepartmental Principal payments on debt Interest and fiscal charges Capital outlay Capitalized equipment Right-of-way and realty Testing Engineering Architectural Commodities Construction Professional services Other Total capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing uses Proceeds from issuance of debt Transfers Total other financing sources Net change in fund balance Fund balances, beginning Fund balances, ending

3,725,286 2,159,120 2,068,475 1,746,513 2,501,126 100,496 1,250,060


(9,957,589) (54,072) 4,924,026 4,869,954

-

$

(27,373) 81,696 54,323

$

952 6,902 35,375 55,057 98,286 98,286

12,757

(185,235)

-

(391,450)

(753,250)

(391,450) (576,685) 3,134,829 2,558,144

(753,250) (744,622) 3,680,419 2,935,797

12,757 445,478 458,235

$

8,628

$

98

1998 General Obligation Refunding and Capital Projects

1999 General Obligation Private Placement Projects

1999 General Obligation Private Placement (IPSCO)

$

$

$

59,825 59,825

-

372 372

2,972 2,972

2000 Capital Projects $

67,285 67,285

2002 Limited Obligation Tax Increment Capital Projects $

106,818 -

Flood Management

2008B General Obligation Capital Improvement Projects

2008C General Obligation Capital Improvement Projects

$

$

$

870 -

106,818

870

26,918 26,918

-

-

-

-

-

2,118,083 33,789,705 25,450,322

-

1,425 140 24,821 102,657 129,043 129,043

3,976,644 3,976,644 3,976,644

-

-

2,495 30,850 478 89,613 123,969 123,969

24,192 24,192 24,192

(64,144)

(23,820)

(61,758)

(3,869,826)

533

-

-

(64,144) 1,969,562 $1,905,418

(23,820) 23,836 $ 16

2,972

2,972 79,600 $ 82,572

17,777

15,484,800

-

2,881,754 33,789,705 25,550,186

9,998 2,594 11,080 24,145 61,382,255 (61,355,337)

(394,199)

(56,052,948)

22,095,000 (18,690,919)

91,390,000 (29,793,208)

-

-

69,295,000 -

(61,758) 2,100,989 $2,039,231

(3,869,826) 4,021,493 $ 151,667

-

69,295,000 7,939,663 $ 7,939,663

$

$ 3,725,286 2,159,120 2,068,475 1,746,513 2,501,126 1,439,727 594,493 1,250,060

89,945 128,047 34,070 78,842 33,444 6,417,946 588,968 1,435,585 509,256 9,316,103 71,537,748

-

870 82,670 83,540

17,777 -

1,273 (10,001) 10,271 410,433 411,976 411,976

473

870

Total

3,404,081 3,009,882 $ 3,009,882

99

61,596,792 5,543,844 20,544,598 $ 26,088,442

CITY OF MOBILE, ALABAMA SCHEDULE OF CAPITAL PROJECTS BY PROGRAM AND DISPOSITION CAPITAL PROJECTS FUNDS BEGINNING OF PROJECT THROUGH SEPTEMBER 30, 2008

Project Cost Prior Year

Program/Project Name General Government Multipurpose Mobile Housing Board - home grant Various bank charges Finance - general government equip and misc items Fredrick Richardson - District 1 William Carroll - District 2 Reggie Copeland - District 5 Gina Gregory - District 7 Reserve for contingency - TIF Building and grounds allowance CSX - Quiet Zone Initiative City share - Crepe Myrtle Trail City share - Crepe Myrtle Trail - General Fund City share - economic development City share - ThyssenKrupp Citywide strategic and marketing plan Demolitions - condemned buildings Equipment - administrative services Equipment - animal shelter Equipment - council miscellaneous Equipment -city clerk Equipment - public works Equipment - telecommunications Expand municipal garage Financial software maintenance Fire damage - Sage Avenue Armory Sage Avenue Armory GIS/aerial mapping system GIS mapping system Mechanical maintenance - maintenance projects Mobile Area Education Fund Mobile Airport - rent Aviation Training School Public buildings - maintenance projects Renovations - CitiSmart room Tax increment financing - RSA building Technology building - purchase and renovation Strategic planning - comm/react/CitiSmart Strategic planning - Mayor's office misc remove and equip Strategic planning - MIS system upgrade Total multipurpose

$

373,320 (298,663) 7,048 75,087 916,537 199,342 2,686,827 161,000 44,218 6,521,383 141,029 77,126 10,904,254

Total Project to September 30, 2008

Current Activities

$

45,256 442,462 41,478 3,812 900 1,000 14,400 1,018,054 55,117 118,083 849,240 (826,745) 60,398 15,102,686 352,996 15,475 92,400 700 1,754 7,067 65,159 15,606 938 236,114 69,336 5,330 9,761 81,902 150,000 9,026 88,761 5,976,644 41,310 350,000 37,185 125,455 24,659,060

$

45,256 442,462 41,478 3,812 900 1,000 14,400 1,018,054 55,117 118,083 1,222,560 (1,125,408) 60,398 15,102,686 360,044 15,475 92,400 75,787 1,754 7,067 65,159 15,606 917,475 236,114 268,678 5,330 2,696,588 161,000 81,902 150,000 9,026 88,761 44,218 12,498,027 182,339 350,000 114,311 125,455 35,563,314

100

Disposition In-Progress Expensed Capitalized

$

118,083 360,044 478,127

$

1,222,560 (1,125,408) 917,475 5,330 2,696,503 161,000 3,877,460

Expensed

$

Completed Capitalized

45,256 442,462 41,478 3,812 900 1,000 14,400 1,018,054 55,117 60,398 15,102,686 15,475 39,633 1,754 7,067 56,434 7,046 236,114 85 51,694 150,000 9,026 88,761 12,498,027 350,000 101,678 30,398,357

$

52,767 75,787 8,725 8,560 268,678 30,208 44,218 182,339 114,311 23,777 809,370

101

CITY OF MOBILE, ALABAMA SCHEDULE OF CAPITAL PROJECTS BY PROGRAM AND DISPOSITION (CONT'D) CAPITAL PROJECTS FUNDS BEGINNING OF PROJECT THROUGH SEPTEMBER 30, 2008

Program/Project Name General Government Environmental Engineering, Row and testing 12 Mile Creek Museum Dr. 2006 Various Drainage Pip Rep 2007 Annex Areas 1&2 2008 Miscellaneous Drainage/Pipes Water quality studies Azalea Road at Boltons Bridge design Airport Blvd Stabilization Bates Landfill closure Bayou St. Board of Health Big Stickney Culvert at Springhill Avenue Carlisle Phase 2 - Morlee Drive to ICG railroad Catherine Street drainage Conception Street drainage Cottage Hill - Bridge Repair Craft Highway - stormwater Craft Highway - bridge repair Dauphin St. Ext. Drainage Eslava Creek repairs at Wimbledon Eslava Creek at Airport Environment testing and upgrade FEMA - mitigation buyout Florida Street - Woodcock Creek Dauphin Government Street Phase 3 - Houston/Crenshaw Government Street drainage - loop area Granada Drive and Spring Creek Gulffield Drive drainage Halls Mill Road at Moore Bridge Ice House Branch drainage Jackson Heights drainage Little Stickney - 3 mile tributary Little Stickney - Springhill to Louiselle Macy Place drainage Maryknoll ditch repairs McGill Blacklawn drainage McRae Avenue - stormwater Michigan Avenue bridge repairs Montlimar Canal repairs Navco Road bridge and Bolton NCRS erosion debris removal Old Shell road drainage Panorama Boulevard drainage Seabreeze Road East drainage Spring Creek Bank Stabilization Spencers Branch drainage - Dodge School Southern Drain Phase 2 Three Mile Creek bank stabilization Various channel improvements - citywide Westgate subdivision drainage Wilshire Rd Drainage Wilkins Road drainage Total environmental


347,756 740,197 5,300 3,019,418 1,430,727 33,983 31,613 3,000 47,996 122,069 946,788 1,225,490 3,082,789 1,383,181 1,107,842 61,276 472,076 3,810,586 20,736 1,447,855 125,280 1,289,862 917,013 205,828 19,177 650,455 683,774 99,982 114,288 6,240 61,876 5,965,462 136,765 652,469 193,944 30,463,093

Current Activities

22,008 345,802 2,000 970,955 4,742 115,077 48,402 170,044 6,000 150 28,588 5,040 13,450 66,198 1,952,161 533 67,317 606,338 3,369,347 714 15,949 51,597 1,252,246 61,752 1,311,769 1,862 23,025 757,501 231,406 156,275 531,255 386,307 139,649 171,686 140 16,800 17,448 12,921,533


22,008 345,802 2,000 970,955 4,742 115,077 347,756 48,402 910,241 6,000 5,450 3,048,006 1,430,727 39,023 13,450 31,613 69,198 2,000,157 122,069 533 67,317 1,553,126 4,594,837 3,082,789 1,383,181 714 1,123,791 51,597 1,313,522 472,076 3,810,586 82,488 2,759,624 125,280 1,289,862 918,875 228,853 19,177 1,407,956 915,180 99,982 114,288 162,515 531,255 448,183 6,105,111 136,765 824,155 140 16,800 211,392 43,384,626

102


1,553,126 915,180 2,468,306

345,802 2,000 970,955 4,742 48,402 6,000 5,450 3,048,006 1,430,727 39,023 13,450 31,613 69,198 2,000,157 122,069 533 4,594,837 3,082,789 1,383,181 714 51,597 1,313,522 472,076 3,810,586 82,488 2,759,623 228,853 19,177 1,407,956 114,288 162,515 6,105,111 448,183 136,765 824,155 16,800 35,153,343

Expensed


22,008 115,077 67,316 204,401

347,756 910,241 1,123,792 125,280 1,289,862 918,875 99,982 531,255 140 211,392 5,558,575

103


Program/Project Name General Government Transportation Electrical equipment Traffic engineering - street improvements Resurfacing - 4 cent gas tax project Resurfacing - 2006 bond projects Resurfacing - Mobile Pay as You Go Bel Air Boulevard bridge repairs City's share - Hillcrest MPO project City's share - Old Shell Road City's share - Zeigler Boulevard Cody Road widening project Airport Blvd Signal System Improvement Airport Blvd Interconnect Downtown streets and signs Elwood Drive repairs Florence Street Halls Mill Road - Dublin Street Lipscomb Landing bridge Lipscomb Landing road Miscellaneous street improvements Mobile Street improvements Morgan Street Bridge Repairs Old Shell Road Sidewalks Water Street improvements - sign design Shadow Creek Road repairs St. Stephens Road Sidewalks Stormwater - miscellaneous bridges Neighborhood Beautification-District 4 Traffic circles/calming devices Traffic engineering - signal at Cody Road Traffic engineering - signal at MLK Traffic engineering - two way St. Louis Street Traffic engineering - two way Dauphin Street Traffic engineering - signal at 680 S. University Traffic engineering - signal at Providence park Total transportation Security 800 MHZ radio site rental City's share-fire department equipment grant Equipment - fire Equipment - police Equipment - public safety Fire - miscellaneous fire station building improvements


Current Activities

834,157 4,051,828 2,000,393 987,643 3,018,667 1,144,788 205,963 8,550 14,555 1,875 56,392 78,423 611,545 137,944 585,704 914,242 6,350 528,623 14,700 43,326 56,644 365,236 22,546 16,387 15,706,481

15,061 33,729 1,028,518 7,908 77,959 299,302 92,132 84,308 6,809 1,122 1,804 36,958 37,960 24,290 515 7,562 123,168 2,890 122,697 4,247 478 106,056 2,115,473

43,101

98,823 494 373,305 49,400 2,700 61,451


15,061 33,729 1,862,675 4,051,828 2,008,301 1,065,602 3,018,667 1,144,788 505,265 100,682 84,308 6,809 14,555 1,875 57,514 78,423 611,545 139,748 36,958 585,704 37,960 24,290 914,757 6,350 7,562 651,791 2,890 137,397 47,573 478 162,700 365,236 22,546 16,387 17,821,954 98,823 494 373,305 49,400 2,700 104,552

104


-

724,251 4,051,828 1,065,602 3,018,667 505,265 100,681 84,308 6,809 1,875 585,704 37,960 24,290 914,757 7,562 651,791 47,573 365,236 162,700 16,387 12,373,246

-

104,552

Expensed


15,061 33,729

89,116

1,138,424 2,008,301 1,144,788 14,555 57,514 78,423 611,545 139,748 6,350 137,397 22,546 5,359,591

98,823 494 195,348 49,400 2,700 -

177,957 -

36,958 2,890 478 -

105


Program/Project Name General Government Security (Cont'd) Fire - various station upgrades Ft. Hardeman Armory Roof Fire Dept. - Warehouse Purchase New Public Safety Facility Police -Motorcycles Police - new towing facility Police - Toulmonville multipurpose room Police - community initiative Police joint use firearms facility Police joint use firearms facility - General Fund Total security Recreation Equipment - parks and recreation Broad/Dauphin Transit Pocket Park College Football Bowl Contribution LPGA Cruise terminal and gangway Lease purchase - parks and recreation equipment Municipal Pier - McNally Park Municipal Pier - McNally Park - General Fund Hank Aaron Stadium Parks - annexed area Parks - citywide swimming pools repairs Parks - Baumhauer-Randall Parks - Crawford Park improvements Parks - Cooper-Riverside Park Parks - Dearborn Street Community Center Parks - Demotropolis/Stotts Parks - Figures Park improvements Parks - Hackmeyer Park improvements Parks - Heritage Park Parks - Isom Park Parks - James Seals Park improvements Parks - Joe Bailey Park improvements Parks - Kidd Park improvements Parks - Lake Drive Tricentennial Park Parks - Lake Drive Tricentennial Park - General Fund Parks - Langan various improvements Parks - Langan playground Parks - Luscher Park improvements Parks - Lavretta new restrooms Parks - Mary Abby Berg Parks - Pixie Playhouse/master plan Parks - Plateau Community Center Parks - Mobile Regional Senior Community Center Parks - Taylor Park improvements Parks - Trinity Gardens Park


Current Activities


44,350 25,549 10,300 1,596,308 (1,505,092) 214,516

13,231 162,802 714,670 183,357 7,982 382,582 10,317 372,166 (372,166) 2,061,114

13,231 162,802 714,670 183,357 7,982 426,932 35,866 10,300 1,968,474 (1,877,258) 2,275,630

61,281 511,192 (300,942) 166,757 105,301 9,582 45,000 13,600 15,960 5,087 641,098 (497,000) 157,118 98,731 59,574 7,955 20,127 3,288,441 137,257 -

1,484 29,450 1,150,000 350,000 18,690,918 443,185 27,689 2,450 106,127 3,190 13,635 1,053 32,404 933 5,258 12,079 369 646 (646) 21,335 2,759 664 100,000 5,863 3,298 1,960,379 27,714 240

1,484 90,731 1,150,000 350,000 18,690,918 443,185 511,192 (300,942) 27,689 2,450 106,127 3,190 13,635 167,810 137,705 933 9,582 50,258 13,600 12,079 369 15,960 5,087 641,744 (497,646) 178,453 101,490 59,574 8,619 100,000 5,863 23,425 5,248,820 164,971 240

106


13,600 -

Expensed


11,234 183,357 426,931 1,968,474 (1,877,254) 817,294

13,231

10,300 381,714

40,731 2,450 5,087 641,744 (497,646) 5,248,820 -

1,484 1,150,000 350,000 12,870 27,689 106,127 3,190 13,635 2,904 933 5,258 12,079 369 100,000 5,863 3,298 240

3,436 7,982 -

162,802 700,000 35,866 1,076,625 50,000 18,690,918 430,315 511,192 (300,942) 167,810 134,801 9,582 45,000 15,960 178,453 101,490 59,574 8,619 20,127 164,971 -

107


Program/Project Name General Government Recreation (Cont'd) Springhill Avenue recreation center Mobile Tennis - Resurfacing Tennis Court Strategic Plan - Ladd Stadium debt Waterfront development Waterfront development - General Fund Total recreation Cultural Saenger Theatre - roof repairs Centre for the Living Arts Joe Jefferson Playhouse renovations Strategic Plan - Saenger Theatre renovations Historic development - African American Heritage Trail Strategic Plan - Battleship Restoration Addition to Mobile Public Library Mobile Public Library - repairs/renovation Total cultural Total general government Proprietary Mobile Tennis Center Mobile Tennis Center - Repairs Mobile Civic Center: Maintenance Account: Escalator upgrades General maintenance Total proprietary Total capital projects

$


Current Activities

323,819 14,474,480 (14,472,864) 4,871,554

226,819 2,418 98,975 23,498 (23,498) 23,320,688


550,638 2,418 98,975 14,497,978 (14,496,362) 28,192,242

77,127 2,964,801 3,041,928

74,930 250,000 4,260 13,998 31,445 50,000 11,400 31,300 467,333

74,930 250,000 81,387 2,978,799 31,445 50,000 11,400 31,300 3,509,261

65,201,826

65,545,201

130,747,027

2,329,194

28,835

2,358,029

155,093 -

49,289 65,245

204,382 65,245

2,484,287

143,369

2,627,656

67,686,113

$

65,688,570

$

133,374,683

108


13,600

550,638 14,497,978 (14,496,362) 5,993,440

-

1,897,332

58,214,783

250,000 31,445 50,000 11,400 9,932 352,777

81,387 2,978,799 21,368 3,156,484

33,323,697

36,248,515

-

-

-

-

-

-

$

58,214,783

20,287,870

2,418 98,975

-

2,960,033

Capitalized

-

-

2,960,033

$

Completed Expensed

$

74,930 -

2,358,029

55,318

204,382 9,927

55,318

2,572,338

33,379,015

$

38,820,853

109

INTERNAL SERVICE FUNDS

Internal Service funds are used to account for the financing of goods or services provided to other departments or agencies of the City, or to other governments, on a costreimbursement basis. Motor Pool Fund - This fund is used to account for vehicles and equipment provided and maintained by the Motor Pool for other departments of the City. Insurance Fund - This fund is used to account for automobile and general liability claims and expenses paid for other departments of the City. Employee Health Fund - This fund is used to account for assets held in trust by the City for the payment of health insurance claims.

CITY OF MOBILE, ALABAMA COMBINING BALANCE SHEET INTERNAL SERVICE FUNDS September 30, 2008

ASSETS Current assets: Cash, equity in pooled cash and investments Restricted cash - capital purchases Accounts receivable Total current assets Property, plant and equipment Vehicles Furniture, fixtures and equipment Less: accumulated depreciation Property, plant and equipment - net Total assets LIABILITIES Current liabilities: Accounts payable Accrued payroll Capital lease obligations, current portion Insurance claims payable Total current liabilities Noncurrent liabilities: Capital lease obligations, net of current portion Self-insured liability - legal Total noncurrent liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets Total liabilities and net assets

Motor Pool

Insurance Fund

$ 2,641,296 544,706 (17,483) 3,168,519

$ 1,503,747 1,503,747

29,478,999 3,583,411 33,062,410 (22,789,869) 10,272,541 $ 13,441,060

$ 1,503,747

$

$

87,260 7,416

$

$

Employee Health Fund

Total

-

$ 4,145,043 544,706 (17,483) 4,672,266

-

29,478,999 3,583,411 33,062,410 (22,789,869) 10,272,541 $ 14,944,807

124,842 -

$ 1,138,767 -

$ 1,350,869 7,416

94,676

124,842

1,704,745 2,843,512

1,704,745 3,063,030

1,211,663 1,211,663 1,306,339

415,874 415,874 540,716

2,843,512

1,211,663 415,874 1,627,537 4,690,567

9,088,123 3,046,598 12,134,721 $ 13,441,060

963,031 963,031 $ 1,503,747

(2,843,512) (2,843,512) $ -

9,088,123 1,166,117 10,254,240 $ 14,944,807

110

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For the year ended September 30, 2008

Motor Pool Operating revenues Charges for services Total operating revenues Operating expenses Materials Personal services Professional and technical Other charges Insurance benefit payments Increase (decrease) in provision for self-insured losses Depreciation Total operating expense Operating income (loss) Nonoperating revenues (expenses) Gain on disposal of assets Damaged vehicles reimbursement Cost reimbursement Investment income Interest expense Total nonoperating revenues Income (loss) before operating transfers Transfers in Change in net assets Net assets at beginning of the year Net assets at end of the year

$ 4,361,044 4,361,044

$

Insurance Fund


Total

-

$ 17,049,599 17,049,599

$ 21,410,643 21,410,643

2,628,112 126,135 60,991 103,964 -

888,710 1,690,699 -

128,514 19,474,015

2,628,112 126,135 1,078,215 1,794,663 19,474,015

1,676,965 4,596,167 (235,123)

2,579,409 (2,579,409)

(52,451) 19,550,078 (2,500,479)

(52,451) 1,676,965 26,725,654 (5,315,011)

100,924 50,163 500 11,268 (29,847) 133,008

1,837 1,837

(102,115) (102,115) 12,236,836 $ 12,134,721

100,924 50,163 2,337 11,268 (29,847) 134,845

(2,577,572)

(2,500,479)

(5,180,166)

2,606,859

1,714,104

4,320,963

(29,287) $

-

933,744 963,031

(786,375) (2,057,137) $ (2,843,512)

(859,203) 11,113,443 $ 10,254,240

111

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the year ended September 30, 2008

Motor Pool Cash flows from operating activities Cash received from: Internal billings Customers and users Employee contributions Cash payment for insurance claims Cash payments for operating expenses Cash payments to employees for services Net cash provided (used) by operating activities Cash flows from non-capital financing activities Cost reimbursements Transfers in from other funds Net cash provided by non-capital financing activities Cash flows from capital and related financing activities Acquisition of capital assets Proceeds from disposal of assets Proceeds from capital leases Payments on capital leases Interest payments Reimbursement for damaged vehicles Net cash used by capital and related financing activities

$ 4,464,100 (2,972,594) (123,058)

$

Insurance Fund


Total

-

$ 14,104,813 95,084 2,849,702 (19,480,447)

$ 18,568,913 95,084 2,849,702 (19,480,447)

(2,607,671)

459,916

(5,120,349)

-

-

(2,607,671)

(1,970,932)

(3,210,155)

500

1,835 2,606,859

1,714,104

2,335 4,320,963

500

2,608,694

1,714,104

4,323,298

-

-

(1,373,086) (1,061,175) 1,150,000 (371,230) (29,847)

-

-

-

-

1,368,448

-

(1,373,086) (1,061,175) 1,150,000 (371,230) (29,847) 50,163 (1,635,175)

(123,058)

50,163 (1,635,175)

Cash flows from investing activities Investment income received

11,267

-

-

11,267

Net cash provided by investing activities

11,267

-

-

11,267

Net increase (decrease) in pooled cash and investments

(254,960)

1,023

Pooled cash and investments beginning of the year

3,440,961

1,502,724

Pooled cash and investments end of the year

$ 3,186,001

$ 1,503,747

(256,828) 256,828 $

-

(510,765) 5,200,514 $ 4,689,749

112

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF CASH FLOWS (CONT'D) INTERNAL SERVICE FUNDS For the year ended September 30, 2008 Insurance Fund


Total

$ (2,579,409)

$ (2,500,479)

$ (5,315,011)

1,676,965

-

-

1,676,965

103,056

-

-

103,056

Motor Pool Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation Change in assets and liabilities Decrease (increase) in Accounts receivable Increase (decrease) in Accounts payable Accrued liabilities Insurance claims payable Self-insured liability - legal Total adjustments Net cash provided (used) by operating activities

$

(235,123)

(179,527) 3,077 1,603,571 $ 1,368,448

(23,400) (4,862) (28,262)

588,432 (58,885) 529,547

385,505 3,077 (58,885) (4,862) 2,104,856

$ (2,607,671)

$ (1,970,932)

$ (3,210,155)

113

ENTERPRISE FUNDS - NON MAJOR

Enterprise funds account for activities whose operations are financed and operated in a manner similar to private business operations - where the intent of the City is that the costs of providing goods or services to the general public on a continuing basis is financed or recovered primarily through user charges. Azalea City Golf Course - This fund is used to account for the operations of the Azalea City Golf Course which derives revenues from course and cart rental. Firemedics - This fund is used to account for the operations of the Firemedics division which provides ambulance service to the general public. Tennis Center - This fund is used to account for the operations of the Tennis Center which derives the majority of its income from tennis court rentals. Affordable Homes Program - This fund is used to account for the operations of the Affordable Homes Program which derives the majority of its income from rental activity.

CITY OF MOBILE, ALABAMA COMBINING BALANCE SHEET NON-MAJOR ENTERPRISE FUNDS September 30, 2008 Azalea City Golf Course ASSETS Current assets: Cash, equity in pooled cash and investments Receivables - net Materials and supplies Total current assets

$

Noncurrent assets equipment Non-depreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable and accrued liabilities Lease payable - current portion Due to other funds Total current liabilities Noncurrent liabilities: Leases payable, net of current portion Total noncurrent liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets Total liabilities and net assets

219,752 734 47,896 268,382

Firemedics

$

1,053,820 1,053,820

2,444,281 1,219,053 3,663,334

115,535 115,535

$ 3,931,716

$ 1,169,355

$

$

94,954 360,000 454,954 3,475,036 1,726 3,476,762

$ 3,931,716

267,578 1,053,820 1,321,398 126,301 (278,344) (152,043)

$ 1,169,355

114

Affordable Homes Program

Tennis Center

$

1,124 1,124

$

92,109 92,109 $

93,233

$

$

32,589 32,589

$

93,233

639,035

$ 5,833,339

16

446,048 192,971 639,019 $

493,947 1,054,554 47,896 1,596,397 2,447,281 1,789,661 4,236,942

16

92,147 (31,503) 60,644

$

3,000 362,964 365,964

-

-

$

273,071 273,071

Totals

639,035

$

395,137 1,413,820 1,808,957 4,139,532 (115,150) 4,024,382

$ 5,833,339

115

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS NON-MAJOR ENTERPRISE FUNDS For the year ended September 30, 2008 Azalea City Golf Course Operating revenues Facility rent Sales revenue User charges Concessions Miscellaneous Total operating revenues Operating expenses Utilities Cost of goods sold Personal services Professional and technical Commodities Other expenses Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Investment income Interest expense Loss on disposal of assets Total nonoperating revenues (expenses) Net income (loss) before transfers Transfers in Change in net assets Net assets at beginning of the year Net assets at end of the year

$

166,146 1,231,733 2,556 1,400,435

Firemedics $

74,907 110,566 728,339 3,977 145,630 122,090 119,094 1,304,603

2,299,286 2,299,286 34,217 4,785,229 104,279 440,135 258,365 10,475 5,632,700

95,832

(3,333,414)

46,919 (1,790) (61,593) (16,464)

-

79,368

(3,333,705)

(291) (291)

-

3,220,737

79,368 3,397,394 $ 3,476,762

(112,968) $

(39,075) (152,043)

116


Tennis Center $

3,550 70,841 1,680 124 76,195

$

$

169,696 3,601,860 1,680 2,680 3,775,916

74,874 376,764 40,762 33,271 12,177 4,850 542,698

76 5,500 10,719 16,295

184,074 110,566 5,890,332 154,518 619,036 392,632 145,138 7,496,296

(466,503)

(16,295)

(3,720,380)

(189) (189)

(69,364) (69,364)

46,919 (1,790) (131,437) (86,308)

(466,692)

(85,659)

(3,806,688)

-

453,770

-

(12,922) $

-

Totals

73,566 60,644

(85,659) $

724,678 639,019

3,674,507 (132,181) 4,156,563 $ 4,024,382

117

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR ENTERPRISE FUNDS For the year ended September 30, 2008

Cash flows from operating activities Cash received from: User charges Sales revenue Facility rent Concessions Miscellaneous Cash payments for operating expenses Cash payments for interfund services use Cash payments to employees for services

Azalea City Golf Course

Firemedics

$ 1,231,648 166,146 2,556 (494,195) (100,000) (710,921)

$ 2,067,585 (560,951) (4,727,371)

Net cash used by operating activities

95,234

(3,220,737)

Cash flows from non-capital financing activities Transfers in from other funds

-

3,220,737

Net cash provided by non-capital financing activities

-

3,220,737

Cash flows from capital and related financing activities Interest paid on capital lease Acquisition of capital assets Proceeds from disposal of capital assets Capital lease payments

(1,790) (27,166) (59,281) (64,085)

-

(152,322)

-

Cash flows from investing activities Investment income received

46,919

-

Net cash provided by investing activities

46,919

-

Net increase (decrease) in pooled cash and investments

(10,169)

-

Pooled cash and investments - beginning of the year

229,921

-

Net cash used by capital and related financing activities

Pooled cash and investments - end of the year

$

219,752

$

-

118


Tennis Center

$

70,841 3,548 1,680 124 (151,445) (372,945)

$

(448,197)

(5,560) -

$ 3,370,074 169,694 1,680 2,680 (1,212,151) (100,000) (5,811,237)

(5,560)

(3,579,260)

453,770

-

3,674,507

453,770

-

3,674,507

(3,112) (1,887) -

-

(1,790) (30,278) (61,167) (64,085)

1 -

(4,999)

1

(157,320)

-

-

46,919

-

-

46,919

574

(5,559)

550 $

Total

1,124

(15,154)

278,630 $

273,071

509,101 $

493,947

119

CITY OF MOBILE, ALABAMA COMBINING STATEMENT OF CASH FLOWS (CONT'D) NON-MAJOR ENTERPRISE FUNDS For the year ended September 30, 2008 Azalea City Golf Course Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Change in assets and liabilities Decrease (increase) in accounts receivable Decrease (increase) in materials and supplies Increase (decrease) in accounts payable Increase (decrease) in payroll payable Increase (decrease) in due to other funds Total adjustments Net cash provided (used) by operating activities

$

$

95,832

Firemedics

$ (3,333,414)

119,094

10,475

(85) (10,309) (26,716) 17,418 (100,000) (598)

(231,701) 102,202 231,701 112,677

95,234

$ (3,220,737)

120


Tennis Center

$

(466,503)

$

4,850

10,719

9,731 3,725 18,306 $

(448,197)

(16,295)

16 10,735 $

(5,560)

Total

$ (3,720,380) 145,138 (231,786) (10,309) 85,233 21,143 131,701 141,120 $ (3,579,260)

121

CITY OF MOBILE, ALABAMA SCHEDULE OF CAPITAL PROJECTS BY PROGRAM AND DISPOSITION ENTERPRISE FUNDS BEGINNING OF PROJECT THROUGH SEPTEMBER 30, 2008


Program/Project Name Azalea City Golf Course Clubhouse renovations Golf course parking lot WAVE Transit Facility improvements Facility improvements - N. Mobile County Mobile Convention Center Equipment Roof repair Municipal Parking Garage Equipment-traffic engineering Total

$

959,475 -

Current Activities

$

26,886 280


$

986,361 280

1,083,234 4,638

21,216 489

1,104,450 5,127

167,243

88,945 123,105

88,945 290,348

1,350

1,350

$ 2,214,590

$

262,271

$

2,476,861

122

Disposition In-Progress Completed Expended Capitalized Expensed Capitalized

$

$

-

$

986,361 280

$

-

$

-

5,128

-

-

-

88,945 -

-

-

1,350

-

$

991,769

$

1,104,450 -

90,295

290,348 $

1,394,798

123

SUPPLEMENTARY INFORMATION

Other Supplementary Information General Fund Capital Assets Long-Term Debt

OTHER SUPPLEMENTARY INFORMATION

CITY OF MOBILE, ALABAMA SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) GENERAL FUND For the year ended September 30, 2008

Budget Taxes Property Real estate Motor vehicle Sales and use Sales tax - City Sales tax - Police Jurisdiction Lease/rental - City Lease/rental - Police Jurisdiction Room tax - City Room tax - Police Jurisdiction Selective sales and use Motor fuel Regular - City Regular - Police Jurisdiction County equalization Alcoholic beverages Liquor - City Liquor - Police Jurisdiction Liquor - ABC Board Table Wine Beer Other Cigarette stamp tax Other tobacco tax - City Other tobacco tax - Police Jurisdiction Other tax revenue Total taxes Licenses and permits Business licenses - City Business licenses - Police Jurisdiction Motor vehicle licenses Dog licenses Total licenses and permits Intergovernmental Alcoholic Beverage Control Board Financial excise tax Oil and gas tax Mobile County Racing Commission Total intergovernmental

$

10,280,351 1,290,639

Variance Positive/ (Negative)

Actual

$

11,570,990 1,589,822

$

1,290,639 299,183

65,873,928 24,500,840 3,975,000 410,000 2,600,000 335,000

74,161,289 15,323,133 4,011,092 419,859 3,173,293 319,939

8,287,361 (9,177,707) 36,092 9,859 573,293 (15,061)

2,000,000 1,060,000 480,000

2,068,474 932,988 476,990

68,474 (127,012) (3,010)

450,000 38,000 190,000 145,000 1,140,000

472,802 41,925 193,659 146,844 1,172,367

22,802 3,925 3,659 1,844 32,367

2,150,000 425,000 27,000 30,000 117,400,758

2,188,771 403,363 30,651 36,470 118,734,721

38,771 (21,637) 3,651 6,470 1,333,963

27,182,937 3,250,499 650,000 22,000 31,105,436

29,834,671 3,095,985 861,413 28,516 33,820,585

2,651,734 (154,514) 211,413 6,516 2,715,149

150,000 600,000 115,000 185,000 1,050,000

68,306 160,627 163,038 147,607 539,578

(81,694) (439,373) 48,038 (37,393) (510,422)

124

CITY OF MOBILE, ALABAMA SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) GENERAL FUND (CONT'D) For the year ended September 30, 2008

Budget


Actual

Charges for services Health Lot cleaning Building demolition fee Animal shelter City sexton Public safety Inspection Fire plan review fee Police and fire Engineering Parking meters Parking management fees Hazardous material cleanup County sales tax collection fee Property rental Motor vehicle rental - City Motor vehicle rental - Police Jurisdiction Franchise fees - miscellaneous Recreational fees Sale of assets Landfill Total charges for services

35,000 75,000 18,000 2,400

41,306 24,969 15,251 5

6,306 (50,031) (2,749) (2,395)

1,600,000 32,000 475,000 265,000 270,000 2,668,349 42,000 255,000 390,000 2,050,000 500,000 8,000 375,000 9,060,749

2,073,037 39,810 444,286 277,672 180,396 2,702,599 53,917 705,027 200,744 2,281,675 516,332 9,755 283,246 9,850,027

473,037 7,810 (30,714) 12,672 (89,604) 34,250 11,917 450,027 (189,256) 231,675 16,332 1,755 (91,754) 789,278

Fines and forfeitures Municipal offense fines Police fines Drivers' education Bond forfeitures Court costs DA Restitution Unit collection fees Corrections fund Alarm ordinance fines and permits Probation fee from court City drug testing Other fees Total fines and forfeitures

90,000 1,710,000 370,000 154,000 360,000 98,500 1,180,000 10,000 3,972,500

235,682 1,911,686 438,045 84,350 518,959 107,739 1,388,202 6,800 190,024 64,180 22,614 4,968,281

145,682 201,686 68,045 (69,650) 158,959 9,239 208,202 (3,200) 190,024 64,180 22,614 995,781

State and Federal Assistance Interest Investment of idle funds Interest on receivables Total interest Miscellaneous Law enforcement revenues Athletic fund Miscellaneous Total miscellaneous (other) Total revenues

-

6,866,842

1,900,000 120,000 2,020,000

1,075,863 133,071 1,208,934

125,000 125,000

394,526 105,257 131,796 631,579

$ 164,734,443

$ 176,620,547

6,866,842 (824,137) 13,071 (811,066) 394,526 105,257 6,796 506,579 $

11,886,104

125

CITY OF MOBILE, ALABAMA SCHEDULE OF OTHER FINANCING SOURCES (USES) BUDGET AND ACTUAL (BUDGETARY BASIS) GENERAL FUND For the year ended September 30, 2008

Budget Other financing sources Operating transfers in From 5-cent Gasoline Tax Special Revenue Fund From 7-cent Gasoline Tax Special Revenue Fund From Fuel Inspection Fees Special Revenue Fund From Strategic Plan Capital Projects Fund From Capital Improvements Capital Projects Fund From WAVE Transit Total operating transfers in

$

Insurance recoveries Sale of general capital assets Total other financing sources

Actual

$

-

Other financing uses Operating transfers out To Mobile Civic Center Enterprise Fund To Capital Improvement Fund To Strategic Plan Fund To Mobile Convention Center Enterprise Fund To Metro Transit Enterprise Fund To Firemedics Enterprise Fund To Mobile Tennis Center Enterprise Fund To Insurance Internal Service Fund To Employee Health Plan Internal Service Fund Total operating transfers out Total other financing uses

600,000 425,000 84,000 3,579,301 20,447,132 25,135,433

1,134,431 3,143,100 615,000 1,111,137 5,740,000 486,000 2,500,000 1,714,103 16,443,771 $

8,691,662


$

600,000 283,243 85,422 3,971,136 27,755,152 1,938,138 34,633,091

$

141,757 (1,422) (391,835) (7,308,020) (1,938,138) (9,497,658)

448,534 2,233 450,767

(448,534) (2,233) (450,767)

943,106 440,000 51,250 7,662,795 2,197,309 453,770 2,606,859 1,714,104 16,069,193

191,325 2,703,100 563,750 1,111,137 (1,922,795) (2,197,309) 32,230 (106,859) (1) 374,578

19,014,665

$ (10,323,003)

126

CITY OF MOBILE, ALABAMA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES SCHEDULE BY SOURCE September 30, 2008 Accumulated Depreciation

Cost Governmental activities capital assets Land Buildings Improvements other than buildings Vehicular equipment Other equipment Infrastructure Infrastructure-in-progress Construction-in-progress Total governmental activities

Investment in governmental activities General obligation warrants General grants and other Revenue sharing Capital improvements General Fund Internal Service Funds Special Revenue Funds Gifts Total investment in governmental activities

$

24,123,484 53,353,919 95,224,161 50,514,051 42,721,915 321,218,861 48,749,155 30,348,472

$

23,021,471 24,683,669 33,145,607 28,459,188 66,933,908 -

Book Value

$

24,123,484 30,332,448 70,540,492 17,368,444 14,262,727 254,284,953 48,749,155 30,348,472

$ 666,254,018

$ 176,243,843

$ 490,010,175

$

$

$

70,082,706 45,156,199 926,995 339,722,105 9,474,603 33,196,718 41,563,093 126,131,599

$ 666,254,018

19,813,809 10,144,280 625,586 85,325,268 4,891,463 22,916,102 10,568,055 21,959,281

$ 176,243,843

50,268,897 35,011,919 301,409 254,396,838 4,583,141 10,280,616 30,995,038 104,172,317

$ 490,010,175

127

CITY OF MOBILE, ALABAMA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES SCHEDULE BY FUNCTION September 30, 2008 Land

General government Economic development Public safety Public works Culture and recreation Finance Nondepartmental Total governmental capital assets allocated to functions

Improvements

$

22,790,297 132,500 75,715 1,124,972 -

$

50,615,284 5,378,001 962,889 38,264,530 3,457 -

$

24,123,484

$

95,224,161

Construction in progress Infrastructure in progress Total governmental activities capital assets Less: accumulated depreciation Net governmental activities capital assets

128

Buildings

Equipment

Infrastructure

Total

$

21,579,094 8,281,952 1,428,858 22,037,265 26,750 -

$

29,505,003 66,948 26,986,473 19,725,786 3,083,469 5,027,925 8,840,362

$ 321,218,861 -

$ 445,708,539 66,948 40,778,926 22,193,248 64,510,236 5,058,132 8,840,362

$

53,353,919

$

93,235,966

$ 321,218,861

587,156,391 30,348,472 48,749,155 666,254,018 (176,243,843) $ 490,010,175

129

CITY OF MOBILE, ALABAMA SCHEDULE OF BONDS, WARRANTS AND NOTES PAYABLE For the year ended September 30, 2008

Interest Rates Percent

Interest Payment Dates

Issue Date

Final Maturity Date


3.9-5.50

2/15-8/15

7/8/98

8/15/20

Semi-annual payments ranging from $380,088 to $2,139,544

1999 General Obligation Private Placement Warrants (IPSCO)

4.85

2/15-8/15

3/11/99

2/15/09

Semi-annual interest with annual principal payments ranging from $225,000 to $330,000

2001 General Obligation Refunding and School Warrants

4-5

2/15-8/15

8/15/01

2/15/20

Semi-annual interest payments with annual principal payments ranging from $785,000 to $2,925,000


5.2-5.5

2/15-8/15

5/15/02

8/15/20

Semi-annual interest payments with annual principal payments ranging from $1,975,000 to $5,475,000


3.7-5.5

2/15-8/15

5/15/02

2/15/23

Semi-annual interest payments with annual principal payments ranging from $$390,000 to $885,000


4.38-5.0

2/15-8/15

7/1/06

2/15/30



4.5

2/15-8/15

10/2/06

8/15/16

Semi-annual interest payments with annual principal payments ranging from $225,000 to $380,000

4.0-5.0%

2/15-8/15

1/22/08

2/15/30


2008B General Obligation Refunding and Improvement Warrants

4.0-4.660%

2/15-8/15

7/24/08

2/15/20


2008C (AMT) General Obligation Improvement Warrants

4.0-4.830%

2/15-8/15

7/24/08

2/15/30


Note payable to Chemical Bank of New York

3.737.9

2/1-8/1

8/5/92

8/1/12


Note payable to JPMorgan Chase Bank

Variable 0.2 + LIBOR

2/1-8/1

6/30/04

8/1/22


2008 General Obligation Warrants

Serial Payments

Total

130

Original Amount of Issue

$

Year Ended September 30, 2008 Issued


Year Ended September 30, 2008 Retirements


Interest for Year Ended September 2008

55,461,336

35,086,500

-

35,086,500

-

26,499,366

2,700,000

645,000

-

315,000

330,000

47,969

31,430,000

17,630,000

-

1,570,000

16,060,000

782,518

65,725,000

60,145,000

-

3,795,000

56,350,000

3,203,091

10,655,000

9,860,000

-

420,000

9,440,000

506,163

63,410,000

62,265,000

-

2,115,000

60,150,000

2,899,275

3,100,000

2,875,000

-

265,000

2,610,000

126,450

1,246,450

57,000,000

-

57,000,000

-

57,000,000

69,295,000

-

69,295,000

-

69,295,000

-

22,095,000

-

22,095,000

-

22,095,000

-

2,000,000

840,000

-

140,000

700,000

23,644

1,275,000

1,140,000

-

50,000

1,090,000

257,912

384,146,336

$

190,486,500

$

148,390,000

$

43,756,500

$

295,120,000

$

35,592,838

131

CITY OF MOBILE, ALABAMA STATISTICAL SECTION This part of the City of Mobile's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents

Page

Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.

132

Revenue Capacity These schedules contain information to help the reader assess the government's local revenue sources.

146

Debt Capacity These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.

147

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.

163

Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 168

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

CITY OF MOBILE, ALABAMA NET ASSETS BY COMPONENT LAST SEVEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008

2007

Governmental activities Invested in capital assets, net of related debt

$

Restricted Unrestricted Total governmental activities net assets

165,220,265

$

268,805,699

101,136,760

16,179,486

2,166,159

10,736,409

$

268,523,184

$

295,721,594

$

108,695,419

$

92,821,853

Business-type activities Invested in capital assets, net of related debt Unrestricted Total Business-type activities net assets

(1,354,221)

(3,287,345)

$

107,341,198

$

89,534,508

$

273,915,684

$

361,627,552

Primary government Invested in capital assets, net of related debt Restricted

101,136,760

Unrestricted Total primary government net assets

16,179,486

811,938 $

375,864,382

7,449,064 $

385,256,102

132

2006 $

247,146,264

2005 $

229,591,176

2004 $

217,465,721

(restated) 2002

2003 $

208,403,465

14,374,419

10,940,382

14,560,599

10,381,039

15,528,997

7,943,856

(4,584,993)

(6,263,934)

$

197,315,496 9,152,614 (165,322)

$

277,049,680

$

248,475,414

$

227,441,327

$

212,520,570

$

206,302,788

$

93,845,147

$

94,654,880

$

93,570,979

$

97,229,101

$

97,082,598

(1,610,125)

(829,620)

4,572,242

4,429,680

4,310,429

$

92,235,022

$

93,825,260

$

98,143,221

$

101,658,781

$

101,393,027

$

340,991,411

$

324,246,056

$

311,036,700

$

305,632,566

$

294,398,094

14,374,419

10,940,382

13,918,872 $

369,284,702

14,560,599

7,114,236 $

342,300,674

10,381,039

(12,751) $

325,584,548

9,152,614

(1,834,254) $

314,179,351

4,145,107 $

307,695,815

133

CITY OF MOBILE, ALABAMA CHANGES IN NET ASSETS LAST SEVEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008

2007

Expenses Governmental activities: General government

$


49,310,958

$

25,688,828

984,354

1,011,217

Public safety

96,009,857

79,092,490

Public works

40,955,090

34,964,378


22,191,802

15,418,136

5,273,774

5,363,060

Finance Nondepartmental

-

Interest on long-term debt Total governmental activities expenses

53,282,158

36,120,233

9,879,154

250,846,068

224,699,421

Business-type activities: Alabama Cruise Terminal

-

-

Civic Center

4,134,371

3,833,788

Convention Center

9,921,621

9,240,980

Golf course

1,302,813

1,371,130

Firemedics

5,632,700

4,473,192

Parking garage

264,875

243,425

Tennis center

542,698

546,246

16,295

10,864

10,244,202

9,445,274

Affordable Homes Program WAVE transit Total business-type activities expenses Total primary government expenses

32,059,575 $

282,905,643

29,164,899 $

253,864,320

134

2006

$

$

25,254,679

2005

$

24,452,166

2004

$

21,644,715

(restated) 2002

2003

$

19,229,493

$

19,030,342

749,116

881,185

866,762

2,795,934

2,666,172

72,728,165

69,825,747

65,977,916

66,273,267

69,394,743

33,730,335

31,860,023

29,415,975

27,897,415

32,406,083

13,666,917

13,964,452

11,905,849

9,695,397

9,048,813

5,220,066

4,886,293

3,947,068

3,948,490

4,475,376

55,690,268

52,284,454

36,157,225

41,714,086

49,754,258

8,310,320

8,856,242

8,851,566

9,041,529

37,051,729

215,349,866

207,010,562

178,767,076

180,595,611

223,827,516

3,882,027

3,664,294

3,774,381

3,960,368

4,604,404

7,842,320

7,997,931

6,663,265

5,454,468

5,244,403

1,347,414

1,262,802

1,149,487

1,108,755

1,007,526

4,265,886

4,099,539

3,741,557

3,375,538

3,521,868

247,879

463,143

279,366

288,411

287,034

494,000

426,896

432,122

382,228

412,593

11,223

31,865

16,045

17,240

21,762

9,144,479

8,168,928

7,040,061

6,726,593

5,754,512

27,235,228

26,115,398

23,096,284

21,313,601

20,854,102

242,585,094

$

233,125,960

$

201,863,360

$

201,909,212

$

244,681,618

135

CITY OF MOBILE, ALABAMA CHANGES IN NET ASSETS (CONT'D) LAST SEVEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008

2007

Program Revenues Governmental activities: Charges for services General government

$

9,056,023

$

9,357,220

Public safety

41,289,992

43,238,905

Public works

277,672

261,901

516,332

488,084



5,189,084

4,611,096


3,180,406

2,849,792

59,509,509

60,806,998

Total governmental activities program revenues Business-type activities: Charges for services Alabama Cruise Terminal

202,671

-

Civic Center

2,200,886

1,886,225

Convention Center

3,169,704

1,626,680

Golf course

1,423,508

1,436,369

Firemedics

2,299,286

1,935,848

475,082

315,206

76,195

71,577

Parking garage Tennis center Affordable Homes Program

-

WAVE transit

-

1,099,053

Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues

$

1,001,989

3,667,452

189,500

82,935

2,463,690

14,696,772

10,927,084

74,206,281

$

71,734,082

Net Expense Governmental activities

$ (191,336,559)

$ (163,892,423)

Business-type activities

(17,362,803)

(18,237,815)

$ (208,699,362)

$ (182,130,238)

Total primary government net expense

136

2006

$

9,738,673

2005

$

$

7,501,714

(restated) 2002

2003

$

6,866,737

$

7,950,586

39,537,888

35,693,676

33,474,098

31,868,172

31,264,796

233,358

241,089

241,330

232,441

227,607

503,998

421,705

484,650

530,574

519,719

2,259,958

1,312,445

1,800,444

2,222,375

1,375,823

10,452,699

12,160,117

4,302,290

3,207,269

1,330,199

62,726,574

58,388,477

47,804,526

44,927,568

42,668,730

-

-

-

-

-

1,927,101

1,781,537

1,857,264

2,013,122

2,501,326

1,438,348

1,582,472

1,095,902

1,096,499

1,205,863

1,433,407

1,248,908

1,103,880

1,184,329

1,166,718

1,783,517

1,589,705

1,230,873

2,042,130

1,787,673

332,442

270,805

295,248

277,674

315,338

72,256

64,550

71,603

71,692

77,093

2,515

42,033

30,950

29,292

36,706

960,770

826,705

947,123

1,291,535

1,075,378 14,631,958

-

$

8,559,445

2004

190,775

782,380

317,138

3,187,170

7,069,778

2,954,854

7,764,261

11,137,526

14,667,268

10,370,077

16,087,672

73,864,100

$

73,055,745

$

58,174,603

$

61,015,240

$ (152,623,292)

$ (148,622,085)

$ (130,962,550)

$ (135,668,043)

(16,097,702)

(11,448,130)

(12,726,207)

(5,225,929)

$ (168,720,994)

$ (160,070,215)

$ (143,688,757)

$ (140,893,972)

22,798,053 $

65,466,783

$ (181,158,786) 1,943,951 $ (179,214,835)

137

CITY OF MOBILE, ALABAMA CHANGES IN NET ASSETS (CONT'D) LAST SEVEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008

2007

General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Real and personal property tax

$

Sales tax

14,938,843

$

140,470,973

Gross receipts tax

13,200,779 135,345,733

-

-

Gasoline tax

7,775,814

10,020,374

Room tax

5,239,745

4,689,885

Beer and liquor tax

2,027,597

1,933,147

Rental and leasing tax

4,430,951

6,638,181

Cigarette stamp tax

2,188,771

2,229,154

Other tobacco tax

434,014

444,534

Financial excise tax

-

1,286,414

Other tax revenue

4,264,065

149,249

Investment earnings

3,150,149

4,658,748

Other

5,550,454

5,086,335

Capital contributions

-

Transfers

4,693,831

(26,333,227)

Total governmental activities

(7,812,027)

164,138,149

182,564,337

7,354,647

6,285,253

Business-type activities: Taxes: Sales tax Gross receipts tax

-

Room tax Investment earnings Other

-

1,586,408

1,405,841

59,405

34,180

(164,194)

Transfers Total business-type activities Total primary government

-

26,333,227

7,812,027

35,169,493

15,537,301

$

199,307,642

$

198,101,638

$

(27,198,410)

$

18,671,914

Changes in Net Assets Governmental activities Business-type activities Total primary government net expense

17,806,690 $

(9,391,720)

(2,700,514) $

15,971,400

138

2006

$

12,834,026

2005

$

142,430,882

12,514,663

2004

$

125,670,947

-

11,483,033

$

110,299,805

-

(restated) 2002

2003

11,250,105

$

-

-

10,778,874 -

106,370,132

107,721,408

10,054,815

10,240,950

9,576,652

9,773,049

9,887,274

4,883,060

4,038,979

2,147,609

2,035,015

2,164,859

2,000,960

1,851,427

1,738,397

1,446,190

1,479,985

6,573,934

5,817,366

5,312,377

6,019,106

6,184,240

2,250,584

2,306,408

2,305,187

771,869

727,935

461,272

387,780

305,632

-

-

1,681,486

676,323

1,359,800

334,239

-

185,176

156,916

138,824

129,902

127,940

2,914,890

1,224,720

572,095

1,300,571

1,160,117

1,688,182

4,941,870

3,773,696

2,125,914

10,174,430

-

-

(6,761,709)

-

(172,177)

-

(3,129,800)

181,197,558

169,656,172

145,883,307

6,255,350

5,574,203

5,105,314

-

-

-

329,733

3,221,150

141,885,825

153,628,212

-

-

-

4,888,988

4,984,322

1,438,130

1,284,105

962,656

914,858

978,744

40,239

29,506

12,877

17,570

20,170

12,036

70,178

6,761,709

172,177

3,129,800

14,507,464

7,130,169

9,210,647

-

-

-

(329,733)

(3,221,150)

5,491,683

2,762,086

$

195,705,022

$

176,786,341

$

155,093,954

$

147,377,508

$

156,390,298

$

28,574,266

$

21,034,087

$

14,920,757

$

6,217,782

$

(27,530,574)

(1,590,238) $

26,984,028

(4,317,961) $

16,716,126

(3,515,560) $

11,405,197

265,754 $

6,483,536

4,738,601 $

(22,791,973)

139

CITY OF MOBILE, ALABAMA GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Motor Fiscal

Property

Sales

Fuel

Room

Year

Tax

Tax

Tax

Tax

2008

$

14,938,843

$ 140,470,973

$

7,775,814

$

5,239,745

2007

13,200,779

135,345,733

10,020,374

4,689,885

2006

12,834,026

142,430,882

10,054,815

4,883,060

2005

12,514,663

125,670,947

10,240,950

4,038,979

2004

11,483,033

110,299,805

9,576,652

2,147,609

2003

11,250,105

106,370,132

9,773,049

2,035,015

2002

10,778,874

107,721,408

9,887,274

2,164,859

2001

10,767,183

107,521,673

9,850,348

2,049,239

2000

10,175,574

108,225,256

9,516,250

2,122,663

1999

9,543,724

108,854,023

9,550,627

2,233,969

Note: Effective October 1, 2003, the City changed from a gross receipts tax to a sales tax.

140

$

Alcoholic

Rental

Beverage

and

Tobacco

Other

Tax

Leasing Tax

Tax

Tax Revenue

2,027,597

$

4,430,951

$

2,622,785

$

36,470

Total $

9,117,803

1,933,147

6,638,181

2,673,688

35,212

174,536,999

2,000,960

6,573,934

2,711,856

30,735

11,317,485

1,851,427

5,817,366

2,694,188

39,468

10,402,449

1,738,397

5,312,377

2,610,819

44,088

9,705,681

1,446,190

6,019,106

771,869

39,395

8,276,560

1,479,985

6,184,240

727,935

74,002

8,466,162

1,578,942

6,525,032

775,379

62,548

8,941,901

1,859,915

6,646,595

750,924

76,595

139,373,772

1,883,312

6,413,666

773,358

62,773

9,133,109

141

CITY OF MOBILE, ALABAMA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2008

2007

2006

2005

General fund Reserved

$

Unreserved Total general fund

5,832,499

$

11,035,656

5,205,071

$

12,993,274

4,689,693

$

18,402,448

5,174,935 11,796,629

$

16,868,155

$

18,198,345

$

23,092,141

$

16,971,564

$

10,510,041

$

11,622,558

$

5,793,041

$

5,520,833

All other governmental funds Reserved Unreserved, reported in: Capital projects funds Debt service funds

92,514,133

56,428,126

72,006,529

42,678,174

3,338,317

2,688,293

2,400,188

1,433,489

Total all other governmental funds

$

106,362,491

$

70,738,977

$

80,199,758

$

49,632,496

142

2004 $

3,882,731

(restated) 2002

2003 $

6,097,162

2,971,512

$

4,210,595

2,875,792

2001 $

10,139,464

3,570,622

2000 $

16,868,488

3,734,948

1999 $

1,654,601

3,038,704 3,768,379

$

9,979,893

$

7,182,107

$

13,015,256

$

20,439,110

$

5,389,549

$

6,807,083

$

2,697,375

$

2,571,322

$

4,762,746

$

3,313,747

$

3,396,765

$

3,258,234

$

43,412,545

45,369,844

53,714,582

73,923,236

105,787,983

107,151,079

1,369,219

1,283,533

1,266,712

1,378,443

705,351

396,402

47,479,139

$

49,224,699

$

59,744,040

$

78,615,426

$

109,890,099

$

110,805,715

143

CITY OF MOBILE, ALABAMA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2008

2007

2006

2005

$ 181,770,773

$ 174,536,999

$ 181,520,268

$ 162,867,988

36,321,711

34,637,574

31,928,461

29,365,388

539,578

1,730,873

2,242,992

1,076,162

Charges for services

9,850,027

9,764,293

9,722,612

8,691,951

Fines and forfeitures

4,968,281

4,547,176

3,573,552

3,177,332

State and federal assistance

8,306,569

7,460,888

12,712,656

13,472,562

Interest

3,150,149

4,786,183

2,914,890

1,224,720

Other

4,575,337

4,652,330

1,481,766

4,287,774

249,482,425

242,116,316

246,097,197

224,163,877

16,774,235

15,156,729

14,781,181

14,382,821

Revenues Taxes Licenses and permits Intergovernmental

Total revenues Expenditures General government Economic development

903,138

996,402

714,758

800,771

Public safety

84,463,292

75,746,232

69,966,349

67,849,441

Public works

36,655,722

33,982,373

32,858,243

31,394,476


13,191,508

12,830,294

11,331,104

11,215,110

4,597,974

4,395,742

4,295,572

4,112,383

Special and joint accounts

46,884,800

46,938,096

51,929,138

47,402,180

Capital outlay

46,840,175

36,810,657

20,300,611

21,688,401

Principal

46,944,636

12,556,427

13,261,003

9,364,428

Interest and fees

36,120,233

9,637,487

8,887,309

8,643,848

333,375,713

249,050,439

228,325,268

216,853,859

Finance

Debt service

Total expenditures Excess of revenue over (under) expenditures

(83,893,288)

(6,934,123)

17,771,929

7,310,018

Proceeds from borrowing

148,390,000

3,930,000

1,800,000

2,763,710

Proceeds from refunding

-

Other Financing Sources (Uses)

Payments to escrow agent

-

-

63,410,000

-

(37,722,873)

-

Transfers in

56,126,848

41,185,247

44,794,015

48,194,093

Transfers out

(86,780,999)

(53,102,723)

(55,805,630)

(51,744,152)

Insurance recoveries

448,534

Premiums (discounts) on bonds issued

-

Sale of general fixed assets

2,233

Total other financing sources (uses) Net change in fund balance

564,370 2,652

118,186,616 $

34,293,328

(14,354,577)

-

1,190,117

-

84,045

(7,420,454) $

1,166,236

44,359

18,915,910 $

36,687,839

(741,990) $

6,568,028

Debt service as a percentage of noncapital expenditures

28.9%

10.61%

10.95%

9.61%

144

2004

2003

2002

2001

2000

1999

$ 143,212,780

$ 137,704,861

$ 139,018,577

$ 139,130,344

$ 139,373,772

$ 139,315,452

27,454,522

26,656,919

26,405,321

26,880,488

25,671,694

23,259,954

1,733,778

728,280

294,829

692,041

722,817

865,358

8,822,692

6,371,405

6,704,404

6,445,979

6,209,924

5,961,661

3,377,271

3,573,210

3,258,769

3,254,660

3,471,529

3,356,380

6,102,734

5,429,644

2,706,022

3,210,900

4,837,334

10,088,067

549,682

888,848

1,594,253

5,909,888

7,513,660

6,544,639

3,342,784

1,621,789

3,760,469

9,039,739

1,647,246

2,685,628

194,596,243

182,974,956

183,742,644

194,564,039

189,447,976

192,077,139

13,397,019

11,665,659

12,150,695

10,913,546

11,141,500

8,897,579

818,305

886,056

963,459

908,000

964,955

2,267,361

64,386,318

64,444,891

69,012,864

63,352,719

62,649,747

58,733,480

28,890,302

27,427,242

28,414,539

26,839,772

26,748,487

26,467,522

10,519,569

8,400,232

8,715,623

8,057,244

7,769,667

7,328,945

3,890,413

3,911,753

4,492,412

4,160,579

4,179,403

3,870,741

39,403,235

41,032,941

40,820,701

37,526,250

29,621,619

36,556,688

16,977,026

22,443,462

39,421,934

46,500,212

38,952,878

36,872,825

8,437,064

11,684,709

12,640,070

21,767,505

19,861,172

18,096,371

8,537,613

8,914,939

8,536,082

4,753,208

5,306,034

5,518,819

195,256,864

200,811,884

225,168,379

224,779,035

207,195,462

204,610,331

(17,836,928)

(41,425,735)

(30,214,996)

(17,747,486)

(12,533,192)

3,622,429

13,415,597

31,669,860

18,975,889

7,200,000

(660,621) 5,925,000 -

$

-

65,725,000

-

-

-

-

(66,525,000)

(26,606,401)

-

-

49,313,834

44,985,268

53,853,596

67,699,976

50,167,297

33,516,234

(51,992,311)

(47,150,658)

(53,999,180)

(68,726,927)

(53,495,512)

(37,225,117)

-

-

-

-

-

-

-

-

-

-

-

-

43,324

27,399

36,066

57,245

21,457

54,880

3,289,847

1,484,438

12,506,079

4,093,753

15,669,131

3,545,997

2,629,226

9.73%

$

(16,352,490)

11.87%

$

(28,919,656)

$ (26,121,243)

11.85%

14.99%

$

(2,078,355)

15.04%

$

(8,987,195)

14.08%

145

CITY OF MOBILE, ALABAMA VALUE OF TAXABLE SALES LAST FIVE1 FISCAL YEARS Value of Taxable Fiscal Year

Sales - General

Direct Tax Rate -

Ended

Sales Tax

General Sales

September 30

(in millions)

Tax

2008

1

$

2,910

4.0%

2007

2,166

4.0%

2006

2,152

4.0%

2005

2,062

4.0%

2004

1,813

4.0%

Only years available

146

CITY OF MOBILE, ALABAMA SALES TAX RATES DIRECT AND OVERLAPPING1 GOVERNMENTS LAST TEN FISCAL YEARS

Fiscal Year 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

General 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

Auto 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

City of Mobile Farm Manuf. Machinery Machinery 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Vending 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

General 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

City of Mobile Police Jurisdiction2 Farm Manuf. Auto Machinery Machinery 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

Vending 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Source: Alabama Department of Revenue 1

Overlapping rates are those of local and county governments that apply to sales in common geographical areas.

2

The city collects sales and use tax revenues on sales made within the City of Mobile Police Jurisdiction, located outside of the City's limits and within Mobile County.

3

Tax increases effective August 1, 2001.

147

General 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.0% 1.0%

Auto 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 0.5% 0.5%

Overlapping Rates Mobile County3 Farm Manuf. Machinery Machinery 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.0% 1.0% 1.0% 1.0%

Vending 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.0% 1.0%

General 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.0% 7.0%

Total Direct and Overlapping Rates Farm Manuf. Auto Machinery Machinery 4.0% 4.5% 4.5% 4.0% 4.5% 4.5% 4.0% 4.5% 4.5% 4.0% 4.5% 4.5% 4.0% 4.5% 4.5% 4.0% 4.5% 4.5% 4.0% 4.5% 4.5% 4.0% 4.5% 4.5% 3.5% 4.0% 4.0% 3.5% 4.0% 4.0%

Vending 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% 7.0% 7.0%

148

CITY OF MOBILE, ALABAMA PRINCIPAL SALES TAXPAYERS CURRENT YEAR AND NINE YEARS AGO

Taxpayer Wal-Mart #853

Rank

2008 Percentage of

1999 Percentage of

Total Taxable

Total Taxable

Sales

Rank

1

3.4 %

Wal-Mart #991

2

3.1 %

Sam's Club

3

2.5 %

Wal-Mart #866

4

2.2 %

Target #1376

5

1.7 %

Lowes #549

6

1.5 %

Best Buy

7

1.3 %

Lowes #212

8

1.3 %

Wal-Mart #5174

9

1.3 %

10

1.2 %

Dillard

Sales

1

3.4 %

5

1.9 %

Sears

2

2.8 %

Home Depot

3

2.5 %

Lowes of Mobile

4

2.2 %

McConnell Automotive

6

1.7 %

Treadwell Ford

7

1.6 %

Target

8

1.4 %

J.C. Penney

9

1.3 %

10

1.0 %

Kimberly Clark Total

19.5 %

19.8 %

149

CITY OF MOBILE, ALABAMA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Real Property

Personal Property

Fiscal

Residential

Commercial

Motor

Year

Property

Property

Vehicles

2008

$

$

308,008,300

Other

628,768,700

$ 1,131,989,640

$

243,601,600

2007

587,342,300

874,409,560

265,979,820

245,266,880

2006

509,203,420

866,730,580

243,609,900

246,235,260

2005

481,963,100

839,232,940

219,470,040

254,434,700

2004

473,294,640

814,882,360

249,635,960

256,324,340

2003

417,991,000

782,168,820

212,153,500

249,508,000

2002

*

*

*

*

2001

*

*

*

*

2000

*

*

*

*

1999

*

*

*

*

* Data not available Source: Mobile County Revenue Commissioner Note: Property in the county is reassessed annually. Estimated actual value is calculated by dividing assessed value by those percentages. 1

Includes tax-exempt property.

150

$

Total

Estimated

Assessed

Less:

Total Taxable

Direct

Actual

Value1 as a

Tax Exempt

Assessed

Tax

Taxable

Percentage of

Real Property

Value

Rate

Value

Actual Value

66,816,900

$ 2,245,551,340

7 mills

$12,191,259,500

18.97%

68,678,920

1,904,319,640

7 mills

12,012,219,333

16.42%

48,288,160

1,817,491,000

7 mills

10,723,840,500

17.40%

47,304,180

1,747,796,600

7 mills

11,703,335,996

15.34%

45,358,180

1,748,779,120

7 mills

11,693,749,299

15.34%

34,489,340

1,627,331,980

7 mills

11,267,370,642

14.75%

*

1,629,603,960

7 mills

11,064,269,975

14.73%

*

1,507,445,520

7 mills

11,299,236,604

13.34%

*

1,454,710,080

7 mills

9,994,584,971

14.55%

*

1,420,311,340

7 mills

8,718,318,774

16.29%

151

CITY OF MOBILE, ALABAMA PROPERTY TAX RATES DIRECT AND OVERLAPPING1 GOVERNMENTS LAST TEN FISCAL YEARS Overlapping Rates Mobile County County of Mobile School District Total Total County School Millage Millage

Fiscal Year

City of Mobile Total City Millage

2008

7

16

29.5

52.5

2007

7

16

29.5

52.5

2006

7

16

29.5

52.5

2005

7

16

29.5

52.5

2004

7

16

29.5

52.5

2003

7

16

29.5

52.5

2002

7

16

29.5

52.5

2001

7

16

29.5

52.5

2000

7

16

17.5

40.5

1999

7

16

17.5

40.5

Total Direct & Overlapping Rates

Source: Mobile county Revenue Commissioner 1

Overlapping rates are those of local and county governments that apply to property owners within the City of Mobile.

A twelve (12) mill property tax increase for schools was approved by the voters in 2001.

152

CITY OF MOBILE, ALABAMA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2008

1999 Percentage of

Taxpayer Alabama Power Company

Percentage of

Taxable

Total Taxable

Taxable

Total Taxable

Assessed

Assessed

Assessed

Assessed

Value

Value

Rank

Sales

$ 148,949,940

1

*

Value

Rank

$ 247,682,180

1

5.21 %

Gulf Stream Natural Gas System

62,595,000

2

4.85 %

BellSouth Telecommunications

43,797,700

3

5.82 %

54,614,660

3

*

Kimberly Clark Corporation

35,294,720

4

5.78 %

66,075,820

2

*

Florida Gas Transmission

40,929,600

5

4.85 %

Mobile Gas Service Corporation

32,832,000

6

5.74 %

26,974,940

6

*

Marelda Bel Air Mall LLC

25,739,500

7

6.35 %

IPSCO Steel (AL), Inc.

45,600,520

8

3.35 %

Evonik Degussa Corp.

26,900,420

9

4.42 %

27,018,260

5

*

Exxon Corporation

17,189,240

10

4.85 %

21,389,940

7

*

International Paper Company

39,461,680

4

*

Mobil Exploration

17,318,240

8

*

UOP

15,769,420

9

*

DuPont E.I. Demours & Co.

12,872,100

10

*

Total

$ 578,560,880

5.11

$ 430,445,000

*

Source: Mobile County Revenue Commissioner * Data not available

153

CITY OF MOBILE, ALABAMA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Total Tax Levy for Fiscal Year

Fiscal Year 2008

$

Collected within the Fiscal Year of the Levy Amount Percentage of Levy

13,136,355

2007

12,430,360

2006

* $

*

11,358,098

91.37

10,899,543

10,700,744

98.18

2005

10,473,789

10,281,664

98.17

2004

10,255,078

10,005,488

97.57

2003

9,883,960

8,945,606

90.51

2002

10,015,923

9,829,314

98.14

2001

9,092,716

9,014,930

99.14

2000

8,969,769

8,413,904

93.80

1999

8,917,431

8,362,572

93.78

* Data not available Source: Mobile County Revenue Commissioner

154

Collection in Subsequent Years

Total Collection to Date Amount Percentage of Levy

*

*

*

*

11,358,098

91.37

-

10,700,744

98.18

-

10,281,664

98.17

-

10,005,488

97.57

-

8,945,606

90.51

-

9,829,314

98.14

-

9,014,930

99.14

-

8,413,904

93.80

-

8,362,572

93.78

155

CITY OF MOBILE, ALABAMA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities Limited

General Fiscal

Obligation

Obligation

Notes

Capital

Year

Bonds

Bonds

Payable

Leases

2008

$ 283,890,000

2007

178,646,500

9,860,000

7,139,892

7,625,028

2006

185,056,754

10,265,000

2,160,000

9,576,004

2005

167,983,067

10,655,000

2,325,000

9,889,815

2004

175,177,814

10,655,000

2,475,000

9,502,800

2003

182,291,559

10,655,000

1,750,000

5,924,503

2002

192,999,006

10,655,000

1,595,000

3,719,450

2001

172,414,353

-

1,780,000

2,160,062

2000

187,669,353

-

1,960,000

2,922,567

1999

190,685,481

-

1,635,000

831,378

$

9,440,000

$

5,715,482

$

5,660,073

* Data not available Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1

See the Schedule of Demographic and Economic Statistics on pages 162 - 163 for personal income and population data.

156

Business Type Activities

$

Total

Percentage

Capital

Primary

of Personal

Per

Leases

Government

Income1

Capita1

1,003,091

$

304,073,695

*

$

751

1,211,681

202,059,740

1.75%

501

1,393,250

205,664,508

1.83%

209

1,567,401

189,285,481

1.87%

474

1,546,520

196,264,094

2.06%

491

47,441

200,573,621

2.19%

501

88,946

208,879,510

2.35%

519

128,715

176,225,700

2.00%

439

-

192,551,920

2.22%

481

-

193,151,859

1.71%

483

157

CITY OF MOBILE, ALABAMA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS

General Obligation Bonds

Fiscal Year 2008

$

283,890,000

Total

Percentage of Estimated Actual Taxable Value1 of Property

3,338,316

$ 280,551,684

2.30%

Less: Amounts Available in Debt Service Fund $

Per Capita2 $

693

2007

178,646,500

2,688,293

175,958,207

1.46%

437

2006

185,056,754

2,400,188

182,656,566

1.70%

452

2005

167,983,067

1,433,489

166,549,578

1.42%

417

2004

175,177,814

1,369,219

173,808,595

1.49%

435

2003

182,291,559

1,283,533

181,008,026

1.61%

452

2002

192,999,006

1,266,716

191,732,290

1.73%

476

2001

172,414,353

1,378,443

171,035,910

1.51%

426

2000

187,669,353

705,351

186,964,002

1.87%

467

1999

190,685,481

396,402

190,289,079

2.18%

475

Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1

See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property on pages 149 - 150 for property value of data.

2

Population data can be found in the Schedule of Demographic and Economic Statistics on pages 162 - 163.

158

CITY OF MOBILE, ALABAMA DIRECT AND OVERLAPPING GOVERNMENT DEBT AS OF SEPTEMBER 30, 2008

Governmental Unit Debt Repaid with Property taxes: County Subtotal, overlapping debt City of Mobile direct debt Total direct and overlapping debt

Debt Outstanding $

400,667,127 -

Estimated Share of Overlapping Debt

Estimated Percentage Applicable1 51%

$

100%

205,680,940

289,991,684 -

205,680,940

289,991,684 $

495,672,624

Sources: Assessed value data used to estimate applicable percentages provided by the Mobile County Commissioner's Office. Debt outstanding data provided by the County. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Mobile. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and therefore responsible for repaying the debt of each overlapping government. 1

The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the government's boundaries and dividing it by the county's total taxable assessed value.

159

CITY OF MOBILE, ALABAMA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Fiscal Year

Debt Limit Total net debt applicable to limit Legal Debt margin Total net debt applicable to the limit as a percentage of debt limit

2008

2007

2006

2005

$ 462,473,648

$ 394,599,712

$ 373,155,832

$ 358,670,228

239,875,431

171,439,425

181,386,101

171,891,345

$ 222,598,217

$ 223,160,287

$ 191,769,731

$ 186,778,883

51.9%

43.4%

48.6%

47.9%

Legal Debt Margin Calculation for Fiscal Year 2008 Assessed value of real property, September 30, 2008 Assessed value of personal property, September 30, 2008 Assessed value of personal property, September 30, 2008

$1,760,758,340 551,609,900 $2,312,368,240

Debt Limit (20% of total assessed value) Total net debt applicable to limit Legal debt margin

462,473,648 239,875,431 $ 222,598,217

Note: Under state finance law, the City of Mobile's outstanding general obligation debt should not exceed 20 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. Excludes general obligation warrants applicable to drainage improvements.

160

Fiscal Year 2004

2003

2002

2001

2000

1999

$ 349,755,824

$ 325,466,396

$ 325,920,792

$ 301,489,104

$ 290,942,016

$ 284,062,268

172,289,655

173,130,826

181,163,369

159,414,187

174,776,968

177,996,851

$ 177,466,169

$ 152,335,570

$ 144,757,423

$ 142,074,917

$ 116,165,048

$ 106,065,417

49.3%

53.2%

55.6%

52.9%

60.1%

62.7%

161

CITY OF MOBILE, ALABAMA PLEDGED-REVENUE COVERAGE LAST SEVEN FISCAL YEARS2

Year

Limited Obligation Tax Increment Financing Plan Tax Debt Service Increment Principal

2008

$

1,778,031

$

420,000

$

Interest 506,163

2007

1,416,398

405,000

522,876

2006

1,371,471

390,000

538,090

2005

1,283,642

1

545,305

2004

960,200

1

545,296

2003

760,616

1

545,430

2002

667,308

1

157,658

Note: Details regarding the governments outstanding debt can be found in the notes to the financial statements. 1

No principal payments were scheduled in this period.

2

This debt was issued in 2002.

162

CITY OF MOBILE, ALABAMA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS

Fiscal Year

Population

Personal Income (amounts expressed in millions)

2008

404,698

*

2007

403,000

2006

404,111

11,235

28,080

2005

399,727

10,127

25,227

2004

399,635

9,539

23,840

2003

400,300

9,610

22,916

2002

402,539

8,905

22,135

2001

401,108

8,810

22,004

2000

400,364

8,682

21,590

1999

400,295

11,274

21,814

$

11,540

Per Capita Personal Income * $

28,635

* Data not available Source: Mobile Chamber of Commerce Note: All statistical data presented above are for the County of Mobile as the City of Mobile comprises the majority of the County.

163

Median Age

Education Level in Years of Formal Schooling

School Enrollment

Unemployment Rate

35.9

High School Graduate

65,109

4.7%

35.3


65,614

3.7%

35.7


65,345

3.3%

35.3


64,818

4.8%

35.1


65,340

6.5%

34.4


64,159

7.0%

34.3


65,223

6.7%

34.3


65,013

6.0%

34.7


65,544

5.1%

34.4


65,745

5.1%

164

CITY OF MOBILE, ALABAMA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2008

1999 Percentage of

Percentage of

Total City Taxpayer

Employees

Rank

Employment

Total City Employees

Rank

Employment

Mobile County Public School System

8,110

1

4.47%

7,525

1

4.24%

5,740

2

3.16%

3,610

3

2.03%

4,878

2

2.75%

Mobile Infirmary Medical System Univ. of South AL and 5,000

3

2.76%

Wal-Mart

USA Medical

2,915

4

1.61%

City of Mobile

2,350

5

1.30%

2,400

4

1.35%

Providence Hospital

2,312

6

1.27%

2,307

5

1.30%

Mobile County

1,785

7

0.98%

1,712

7

0.96%

1,500

8

0.83%

-

Springhill Medical Center

1,410

9

0.78%

-

Austal USA

1,100

10

0.61%

-

Jitney Jungle Food Services

-

1,900

6

1.07%

-

1,356

8

0.76%

Saad Enterprises, Inc.

-

1,277

9

0.72%

Ciba-Geigy Corporation

-

1,197

10

0.67%

-

Mobile Aerospace Engineering

U.S. Army Corps of Engineers

Total

32,222

17.76%

28,162

12.63%

Source: Mobile Chamber of Commerce

165

CITY OF MOBILE, ALABAMA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS

2008

2007

2006

2005

Function General government

189

196

184

173

12

13

7

10

Public safety

1,307

1,273

1,178

1,190

Public works

553

585

512

547


294

325

323

276

Finance

88

91

90

87

Golf course

28

17

27

30

Firemedics

61

59

58

60

Tennis center

10

7

11

11

3

3

3

3

2,545

2,569

2,393

2,387


Motor pool Total

Sources: Various City departments

166

2004

2003

2002

2001

2000

1999

173

179

186

188

189

192

12

16

16

16

15

16

1,212

1,200

1,229

1,230

1,246

1,201

582

583

591

588

574

571

288

287

289

282

278

273

88

86

94

96

98

96

28

25

27

22

23

23

57

52

58

59

59

59

10

12

12

13

13

13

3

3

3

3

3

3

2,453

2,443

2,505

2,497

2,498

2,447

167

CITY OF MOBILE, ALABAMA OPERATING INDICATORS BY FUNCTION LAST THREE1 FISCAL YEARS Function General government Urban development Service request orders Municipal offense tickets Inspections/investigations Plan reviews Plan reviews - Right of Way Notice of violations Permits Certificate of occupancy PC/BOA applications Tree Commission applications Complete nuisance abatement cases Complete weed abatement cases Removal of trees Trimming removal Stump removal Mobile Human Resources Department Medical claims Indemnity claims Total claims Mobile 311 Calls SROs created Municipal information technology & telecommunications Buildings with computer equipment Miles of fiber optics Wireless sites Computer user accounts Email accounts Voicemail accounts Computers/printers supported Servers supported 800Mhz subscribers City phone extensions Broadband data cards Software applications supported MIT help desk cases Number of employees trained Cell phones Telecom help desk requests

2008

2007

2006

10,525 1,883 48,626 6,094 3,238 6,735 16,179 507 1,282 16 26 28 499 1,813 366

12,264 1,811 57,494 3,576 3,815 5,820 16,940 793 1,260 29 35 480 294 806 381

10,887 1,550 50,838 3,720 * * 16,871 290 608 40 20 160 266 665 406

316 21 337

311 33 344

318 37 355

110,168 55,644

100,234 51,725

72,126 36,348

170 810 25 2,850 2,050 1,545 2,450 75 1,906 2,442 97 375 5,209 510 307 2,952

166 800 35 2,821 1,810 1,285 2,397 60 1,906 2,475 86 342 5,040 620 244 2,674

155 560 45 2,407 1,576 1,311 2,302 81 1,906 2,351 69 * * * 210 2,906

168

CITY OF MOBILE, ALABAMA OPERATING INDICATORS BY FUNCTION (CONT'D) LAST THREE1 FISCAL YEARS Function Economic development Mobile Historic Development Commission Applications reviewed Certificates issued Applications heard by review board Applications denied Public safety Mobile Police Department Crime Incidents3 Murder (or Non-Neg Mans) Murder - domestic Negligent manslaughter Forcible rape Carjacking Robbery Aggravated assault Burglary Larceny Vehicle theft Arson Simple assault Sex offenses Narcotic laws Weapons offence Forgery - counterfeiting D.U.I. All other offenses Total Tickets Following too close Run red light Run stop sign Speeding Speeding in school zone Fire rescue Total calls answered Inspections Plans reviewed Permits issued Mobile Municipal Court Total cases processed Domestic violence cases Environmental cases Traffic cases Criminal cases

2008

2007

2006

584 543 226 7

597 526 226 24

577 469 108 14

35 3 22 68 833 311 3,182 9,707 1,192 78 5,822 275 3,059 383 652 589 33,085

34 6 2 30 59 639 370 3,416 9,749 1,278 89 5,929 266 3,115 354 623 565 33,885

31 3 1 54 46 601 398 3,349 9,655 1,432 56 6,230 294 3,189 352 623 472 34,512

118 2,765 2,251 15,500 218

57 2,165 1,097 12,234 183

45 1,994 1,148 9,314 132

31,712 641 3,854 1,265

30,579 872 871 1,191

25,588 658 196 350

76,578 1,567 4,311 61,096 9,604

69,951 1,698 2,614 56,363 9,276

57,772 1,691 2,610 43,489 9,982

-

169

CITY OF MOBILE, ALABAMA OPERATING INDICATORS BY FUNCTION (CONT'D) LAST THREE1 FISCAL YEARS Function Public works Flood control Debris removed (cubic yards) Work on ditches (miles) Administration Disciplinary actions processed Claims/reports processed Concrete and sidewalk repair Concrete poured Repairs Replacements Right of way maintenance Material hauled (cubic yards) Material used (cubic yards) Repairs Asphalt street repair Asphalt used (tons) Repairs Street Sweeping Miles sweeper swept Debris removed (cubic yards) Water used (gallons) Dredge Material dredged (cubic yards) Material removed (cubic yards) Material hauled (cubic yards) Storm drain and heavy equipment Drains cleaned Material hauled (cubic yards) Solid waste Waste removal (tons) Other waste removal Special events Carcass removal Trash division Trash picked up Pay pile loads Keep Mobile Beautiful Collections (gallons) Other collections (yards) Cleaned (feet) Culture and recreation: Museum of Mobile Total admissions Agencies: Mobile Public Library Items circulated Customer visits

2008

2007

2006

180 36

940 32

18,120 141

102 117

152 100

175 106

5,305 886 526

3,238 1,049 540

2,342 881 522

40,572 8,845 320

47,654 9,930 261

20,845 7,825 126

2,376 17,801

3,152 21,332

2,467 21,376

17,623 17,460 369,640

18,319 17,697 467,000

19,260 20,310 840,000

8,350 16,780

25,000 12,650 11,500

27,275 10,250 9,284

4,455 5,472

3,506 11,488

4,859 13,458

56,647 57 (ton) 242 6,925

58,235 227 (ton) 160 7,588

58,734 61,800 (cy) 560 4,512

231,900 896

264,602 977

333,285 610

1,442 19,555

1,338 13 19,707

4,643 6,285

87,815

201,629

39,598

1,975,446 1,369,611

1,830,942 1,264,125

1,739,028 1,123,116

1

Only years available

2

Prior year numbers restated per information from the Human Resource Department.

3

Prior year numbers restated per information from Police Department.

* Data not available Source: Various City Departments

170

CITY OF MOBILE, ALABAMA CAPITAL ASSET STATISTICS BY FUNCTION LAST THREE FISCAL YEARS1 Function Streets and Highways Paved Unimproved Traffic Signals Street Lights Public Safety Police Precincts and Mini-Precincts Fire Number of Stations Culture and recreation Number of Parks and Playgrounds Parks Acreage Swimming Pools Tennis Courts Community Centers

2008

2007

2006

1261.5 20.9 452 4922

1179.7 15.8 398 4922

1164.1 12.8 283 4893

10

10

8

20

19

17

89 1740 7 97 17

68 1740** 6 97 16

67 1740** 6 87 16

Motor Pool Number of Sanitation Collection Trucks 34 31 * Data not available **Prior year information restated. More accurate method of measuring acreage implemented in 2008. Source: Various City Departments 1 Only years available

*

171