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HomeMy WebLinkAbout2018_06_20 Town Board Meeting Packet TOWN OF MAMARONECK TOWN BOARD AGENDA WEDNESDAY, JUNE 20, 2018 MEETING LOCATION-SENIOR CENTERNFW 1288 BOSTON POST ROAD 5:00PM THE TOWN BOARD WILL CONVENE IN SENIOR CENTER CARD ROOM TO DISCUSS: 1. Continued Discussion - Charitable Trusts/Property Tax Credit 2. 2018 Road Resurfacing Project 3. Update-Weaver Street Firehouse Renovation Project 4. Update- Community Solar Project 5. Request- Community Garden 6. 2017 Financial Audit 7. New Business 8. Request for Executive Session 8:00PM CALL TO ORDER-SENIOR CENTER MAIN ACTIVITY ROOM PROCLAMATION-BURT CORWIN-PAST COMMANDER OF VETERANS OF FOREIGN WAR - POST 1156 PRESENTATION -2017 FINANCIAL AUDIT SUPERVISOR'S REPORT PUBLIC HEARING - 1. Banning Of Firearms -Town Buildings 2. Restriction on Parking on a Portion of the West Side of North Chatsworth Avenue near its Intersections with Rochelle Road and Huguenot Drive Law 3. Prohibited Overnight Parking on Garit Lane Law-Adjourned until June 6, 2018 CITIZEN COMMENTS BOARD OF FIRE COMMISSIONERS 1. Authorization - Budget Amendment - Capital Project 2017-29 Fire Headquarters Building Improvements 2. Other Fire Department Business AFFAIRS OF THE TOWN OF MAMARONECK 1. Adoption - 2019 Budget Calendar 2. Report of Bids -TA-18-01 Road Resurfacing 3. Authorization-To Proceed/Budget Amendment-Capital Project 2017-54-Pryer Manor Bridge Repairs 4. Authorization -Amendment to Concession Agreement- Slapshot Café 5. Salary Authorization - Police Department 6. Consideration of Certiorari REPORT OF MINUTES-April 18, 2018 & May 2, 2018 REPORTS OF THE COUNCIL TOWN CLERK'S REPORT NEXT REGULARLY SCHEDULED MEETING- Any physically handicapped person needing special assistance in order to attend the meeting should contact the Town Administrator's office at 381-7810. Es, 0 9 T 0 Town of Mamaroneck O Z "` A County of Westchester F 740 West Boston Post Road, Mamaroneck, NY 10543-3353 COUNSEL TEL: 914/381-7815 FAX: 914/381-7809 W MakerJr®TownotMamaroneckNY.org MEMORANDUM To: Members of the Town Board cc: Stephen V. Altieri,Town Administrator From: William Maker,Jr.,Attorney for the Town Subject: Charitable Gifts Reserve Fund and Real Property Tax Credit Date: June 15,2018 The new State legislation calls a two-step approach for establishing a Charitable Gifts Reserve Fund and granting a credit against real property taxes to those who contribute to the Fund. The first step is to establish the Charitable Gifts Reserve Fund which can be done by resolution. I attach a proposed resolution to create the Fund. The second step is to grant a credit against real property taxes to those who contribute. That must be done by local law. I attach a proposed local law that if passed will create the tax credit. If the local law is acceptable to the Town Board,it may set a date for a public hearing to discuss whether the law should be passed. �t r � r•. to Printed on Recycled Paper /"`\ Resolution Establishing a Charitable Gifts Reserve Fund in the Town of Mamaroneck On motion of Council , seconded by Council , the Town Board finds and approves the following: WHEREAS, General Municipal Law § 6-u (1) authorizes the Town Board to establish a charitable gifts reserve fund to which owners of real property in the Town may make charitable contributions of money, and if the Town Board passes the necessary local law, may be able to receive as much as a ninety-five (95%) credit against the taxes imposed by the Town against the real property owned by the donors to the fund,and WHEREAS, if the Town Board passes the necessary local law, such law cannot provide for a credit against the taxes imposed by the County of Westchester, by the Mamaroneck Union Free School District, against properties situated in that District, by the Scarsdale Union Free School District, against properties situated in that District, \ by the Village of Mamaroneck against properties situated in that Village, or by the Village of Larchmont against properties situated in that Village as each of those taxing authorities must create its own charitable gifts reserve fund and decide what will be the amount of the credit against the taxes each imposes. NOW THEREFORE,BE IT RESOLVED, that a Charitable Gifts Reserve Fund is established for the Town of Mamaroneck, BE IT FURTHER RESOLVED, that the Receiver of Taxes is authorized and directed to accept contributions to the Charitable Gifts Reserve Fund only if they are made in currency of the United States or by checks payable in currency of the United States and only if they are made by an owner of real property situated in the Town or by a person acting on behalf of an owner of real property situated in the Town BE IT FURTHER RESOLVED, that the funds on deposit in the Charitable Gifts Reserve Fund shall be invested in the manner provided by General Municipal Law§ 11 BE IT FURTHER RESOLVED, that the Town Administrator and the Receiver of Taxes are authorized and hereby are directed to take the steps necessary to implement this resolution by among other things: (a) issuing to the owner of real property situated in the Town making a contribution, or to the person making the contribution if the contribution is made on behalf of the owner of real property situated in the Town, a written acknowledgment of each contribution, in duplicate, in the form promulgated by the Commissioner of the New York State Department of Taxation and Finance, specifying the amount of the contribution, the name and address of the donor, the date that the contribution was received and containing the signature of the Receiver of Taxes, (b) depositing and securing the charitable contributions in the manner provided by General Municipal Law§ 10, (c) assuring that any interest earned and any capital gains realized on the money on deposit in the Charitable Gifts Reserve Fund are made part of that fund, (d) segregating the amounts on deposit in the Charitable Gifts Reserve Fund from other assets of the Town until such time as the amounts on deposit in the Charitable Gifts Reserve Fund are transferred to one or more of the Town's other funds, (e) maintaining separate journal or ledger entries on the books and records of the Town showing the amounts on deposit in the Charitable Gifts Reserve Fund, including any interest earned and any capital gains realized on the money on deposit in the fund, (f) issuing a notice to each person to whom an acknowledgment is issued that (i) the Town makes no representation that any amount of any charitable contribution made to the Charitable Gifts Reserve Fund may be taken as a deduction from the donor's income when computing the donor's federal or New York State income tax, or taken as a credit against the donor's federal or New York State income tax after such computation is made, and (ii) if the donor deducts a contribution made to the Charitable Gifts Reserve /'"1 Fund when computing the donor's federal or New York State income tax, or takes such contribution as a credit against the donor's federal or New York State income tax after such computation is made and the Internal Revenue Service or the New York State Department of Taxation and Finance disallows such deduction or credit, the donor may be liable to the taxing authority for interest and monetary penalties BE IT FURTHER RESOLVED, that at any time between January 1st and March 1st of each year (except in a leap year when March 1st shall read February 29th), the Town Administrator and the Receiver of Taxes shall transfer the money received as charitable contributions during the immediately preceding calendar year plus any interest earned and any capital gains realized thereon as of December 31st of that immediately preceding year to one or more of the Town's other funds. The funds to which the transfer shall be made and the amount to be transferred to each fund shall be left to the discretion of the Town Administrator and the Receiver of Taxes unless the Town Board, by resolution, makes a specific direction as to which of the Town's funds the transfer shall be made and the amount to be transferred to each fund. The above resolution was put to a roll call vote: ,'"\ King Fiddelman Elkind Eney Katz Seligson June 15,2018 Local Law No, -2018 This local law shall be known as the "Tax Credit for Charitable Contributions to the Charitable Gifts Reserve Fund"Law. BE IT ENACTED by the Town Board of the Town of Mamaroneck Section 1—Purpose: By virtue of the authority given to it by General Municipal Law § 6-u, the Town Board passed a resolution creating a Charitable Gifts Reserve Fund for the Town on June 20,2018.By an amendment to Real Property Tax Law § 980-a, the State of New York has allowed the Town (and other taxing authorities) to authorize a taxing authority that creates a Charitable Gifts Reserve Fund to allow a credit against taxes levied by that taxing authority upon the real property owned by a contributor to such Fund. This local law establishes the credit against the taxes imposed upon the Town for contributions to the Charitable Gifts Reserve Fund. Section 2—Addition of a new article to Chapter 195 of the Mamaroneck Code: Chapter 195 of the Code of the Town of Mamaroneck hereby is amended to add a new Article XI thereto: Article XI Credit for Contributions to the Charitable Gifts Reserve Fund §195-45 Purpose By virtue of the authority given to it by General Municipal Law § 6-u, the Town Board passed a resolution creating a Charitable Gifts Reserve Fund for the Town on June 20,2018.By an amendment to Real Property Tax Law § 980-a, the State of New York has allowed the Town (and other taxing authorities) to authorize a taxing authority that creates a Charitable Gifts Reserve Fund to allow a credit against taxes levied by that taxing authority upon the real property owned by a contributor to such Fund. This local law establishes the credit against the taxes imposed upon the Town for contributions to the Charitable Gifts Reserve Fund. §195-46 Definitions As used in this Article,the following terms shall have the meanings indicated: "Acknowledgment" means the written form signed by the Receiver of Taxes specifying the amount of a Contribution, the name and address of the donor,and the date that the Contribution was received by the Receiver of Taxes,that the Receiver of Taxes issues when a Contribution is made. "Associated Credit Year"means the twelve months immediately preceding May of each year. (11 "Charitable Gifts Reserve Fund" means the fund established by a Town Board resolution passed on June 20,2018. "Contribution"means the amount of the donation of money to the Charitable Gifts Reserve Fund made during an Associated Credit Year as shown on an Acknowledgment. "Credit Claim" means the form prescribed by Commissioner of the New York State Department of Taxation and Finance containing the name of the owner of the property to which a claim for a tax credit relates and the date and the amount of the Contributions made to the Charitable Gifts Reserve Fund by the Donor during the Associated Credit Year. "Donor"means an owner of Real Property. Though not the owner of Real Property, a person who acts on behalf of an owner of Real Property when making a Contribution is considered a Donor. "Real Property"means a parcel of land situated in the Town owned by a Donor. "Taxes" means the taxes imposed by the Town on Real Property for the year in which a credit under this law is claimed. §195-46 Credit for Donations to the Charitable Gifts Reserve Fund So long as an Acknowledgment, and a Credit Claim is presented to the Receiver of Taxes on or before t April 30 of the year for which a credit is claimed,the Receiver of Taxes is authorized and directed to (i) grant a credit against the Taxes for the year in which the presentation is made in an amount equal to 95%of the amount of the Contribution, (ii) reduce the Taxes for that year by an amount equal to that credit and (iii) accept payment of such reduced amount as full satisfaction of the Taxes for that year. Under no circumstances can the credit against the Taxes exceed the amount of the Taxes imposed on the Real Property for that year. Section 3-Severability: Should any provision of this Local Law be declared invalid or unconstitutional by any court of competent jurisdiction, such declaration of unconstitutionality or invalidity shall not affect any other provisions of this Local Law, which may be implemented without the invalid or unconstitutional provisions. Section 4-Effective Date: This Local Law shall become effective upon filing with the Secretary of State. fi'w1 June 15,2018 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT avg. year est ROAD LM RW JB RATING repaved tons cost Notes: $150/ton .-* Burton Road 16 14 15.0 200 $ 30,000 11(2 Orchard Road 16 18 17.0 200 $ 30,000 3 Salem Drive 18 18 18.0 680 $ 102,000 4 Harmony Drive 19 20 19.5 200 $ 30,000 s Madison Avenue 19 21 20.0 2007 750 $ 112,500 1990 6 Vine Street 19 21 20.0 1999 420 $ 63,000 -r Clover Road 17 24 20.5 350 $ 52,500 8 Harmon Drive 22 20 21.0 800 $ 120,000 9 New Jefferson Street 22 21 21.5 410 $ 61,500 10 Deerfield Lane 21 23 22.0 150 $ 22,500 ii Fifth Avenue 21 23 22.0 500 $ 75,000 12 Marbourne Drive 21 23 22.0 1050 $ 157,500 13 Hugenot Drive 24 21 22.5 2001 570 $ 85,500 14 Country Club Drive 20 26 23.0 530 $ 79,500 *6 Garden Road West 19 27 23.0 421 $ 63,150, 16 Murdock Road 22 24 23.0 2008 200 $ 30,000 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 17 Alden Road 21 26 23.5 _ 335 $ 50,250 18 Copley Road 21 26 23.5 230 $ 34,500 19 Revere Road 24 23 23.5 200 $ 30,000 20 Rouken Glen 20 27 23.5 2004 F 100 $ 15,000 21 Beresford Lane 25 23 24.0 100 $ 15,000 22 Gate House Lane 21 28 24.5 420 $ 63,000 Built 1981, 1986 23 Glen Eagles Drive 23 26 24.5 2004 480 $ 72,000 24 Ridgeway Road 23 26 24.5 2012 270 $ 40,500 25 Winding Brook Drive 25 24 24.5 150 $ 22,500 26 Plymouth Road 24 26 25.0 90 $ 13,500 27 Barnwall Lane _ 23 28 25.5 1989 150 $ 22,500 28 Fernwood Road 25 26 25.5 360 $ 54,000 29 Kenmare Road 25 26 25.5 230 $ 34,500 30 Kolbert Drive 23 28 25.5 675 $ 101,250 31 Carroll Place 26 26 _ 26.0 2000 25 $ 3,750 32 Vine Road 25 27 26.0 2004 650 $ 97,500 33 Bryson Street 26 27 26.5 _ 100 $ 15,000 34 Dillon Road 22 _ _ 31 _ 26.5 2005 410 $ 61,500 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 35 Garit Lane 19 34 26.5 140 $ 21,000 36 Nancy Lane 22 31 26.5 125 $ 18,750 37 Old White Plains Road 21 32 26.5 2012 1400 $ 210,000 1989, 1994 38 Hilltop Road 24 31 27.5 280 S 42,000 39 East Drive 25 31 28.0 2004 70 $ 10,500 40 Boulder Brae 29 28 28.5 166 $ 24,900 41 Glenn Road 26 31 28.5 2001 450 $ 67,500 42 Wagon Wheel Road 25 32 28.5 500 $ 75,000 built 1984 43 Katie Lane 28 31 29.5 116 $ 17,400 built 1984 44 Mulberry Lane 27 32 29.5 1999 150 $ 22,500 4s Rockridge Road 27 32 29.5 500 $ 75,000 46 Fairway Drive 29 31 30.0 500 $ 75,000 47 Knollwood Drive 29 31 30.0 2003 230 $ 34,500 48 Locust Ridge Road 29 31 30.0 2004 120 $ 18,000 49 Rockland Avenue 36 24 30.0 2012 1700 $ 255,000 portions 1994, 1997 so Seton Road 29 31 30.0 1998 225 $ 33,750 51 Split Tree Road 29 31 30.0 410 $ 61,500 52 Adrian Circle 29 32 30.5 120 $ 18,000 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 53 Greystone Road 2635 30.5 1999 170 - $ 25,500 54 Lafayette Road 30 31 30.5 1990 390 $ 58,500 55 Wood Street 30 31 30.5 100 $ 15,000 56 South Drive 3131 31.0 2004 550 - - $ 82,500 57 West Drive 31 31 31.0 2004 200 _ $ 30,000 58 Mountain Avenue 31 3231.5 2001 210 . $ 31,500 59 Pheasant Run 28 35 31.5 160 $ 24,000 60 South Ridge Road 31 32 31.5 210 $ 31,500 61 Rocky Road 34 31 . 32.5 2009 150 - $ 22,500 62 Carol Lane 29 37 33.0 1981 180built in 1981 _ _ $ 27,000 63 Falls Road 33 34 33.5 2002 85 _ $ 12,750 64 Ferndale Place 31 36 33.5 85 $ 12,750 65 Well House Close 35 32 33.5 _ 80 $ 12,000 - 66 North Chatsworth Avenue 31 37 34.0 2010 2300 $ 345,000 portions 2000, 2002, 2007 67 Washington Square 32 36 34.0 270 $ 40600 68 Bobby Close 33 36 34.5 198995 $ ia,25o . 69 Fern Road 33 36 34.5 2001 110 $ 16,500 70 Jenny Close 33 36 34.5 130 $ 19,500 built 1984 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 71 Springdale Road 33 36 34.5 1998 75 $ 11,250 72 Coventry Court 36 36 36.0 1998 220 $ 33,000 built in 1998 73 Doris Road 36 36 36.0 90 $ 13,500 74 McKenna Place 34 38 36.0 220 $ 33,000 75 Myrtle Boulevard 34 39 36.5 2011 2350 $ 352,500 portions 1989, 1993, 2007, 76 Brookside Place 33 41 37.0 1994 63 $ 9,450 77 Forest Avenue 36 38 37.0 2014 1850 $ 277,500 2001 78 Birch Road 37 38 37.5 2001 95 $ 14,250 79 Briar Del Circle 36 39 37.5 205 $ 30,750 80 Jason Lane 37 38 37.5 2001 350 $ 52,500 81 Birchfield Road 38 39 38.5 2002 160 $ 24,000 82 Maplewood Street 38 39 38.5 2001 300 $ 45,000 83 Woody Lane 38 39 38.5 120 $ 18,000 84 Crest Avenue 37 41 39.0 2004 100 $ is,000 85 Winged Foot Drive 41 37 39.0 2016 650 $ 97,500 portions 2009 86 Valley Road 38 41 39.5 2002 560 $ sa,000 87 Addee Circle 40 40 40.0 2004 140 $ 21,000 88 Poplar Road 39 42 40.5 2002 100 S 15,000 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 89 Rocky Hollow Drive 3942 40.5 2004 260 - $ 39,000 90 Sackett Circle 40 41 40.5 2004 110 -$ 16,500 91 Sackett Drive 40 41 40.5 2004 125 $ 18,750 92 Wildwood Road 38 43 40.5 2002 200 $ 30,000 93 Carriage House Lane 42 40 41.0 2006 $ 300,900 94 Heather Lane 42 40 41.0 105 $ 15,750 9s Sheldrake Avenue 42 40 41.0 2012 270 - $ 40,500 96 Althea Lane 41 42 41.5 2004 150 $ 22,500 97 Hudson Place 39 44 41.5 2004 125 _ $ 18,750 98 Landsdowne Drive 41 42 41.5 2010 20 $ 3,000 99 Holly Place 40 44 42.0 1998 550 $ 82,500 loo Hickory Grove Drive East 41 44 42.5 2012 500 `$ 75,000 1993, 1990 101 Well House Lane 42 43 42.5 180 $ 27,000 102 Crescent Road 43.0 2009 135 _ $ 20,250 103 Chester 42 45 43.5 2005 110 $ 16,500 104 Eton Road 44 43 43.5 2006 250 $ 37,500 105 Lancia Lane 44.0 2011 65 $ 9,750 1993 'o6 Wildwood Circle 43 46 44.5 100 $ 15,000 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 107 Laurel Avenue 45.0 2013 450 $ 67,500 Crack Seal 108 Sherwood Drive 45.0 2013 60 $ 9,000 109 Taylor Place 45.0 2013 50 $ 7,500 no Thompson Street 45.0 2013 110 $ 16,500 chip seal in Baldwin Avenue 45.0 2013 300 $ 45,000 112 Blossom Terrace 45.0 2014 432 $ 64,800 113 Briarcliff Road 45.0 2009 420 $ 63,000 iia Cabot Road 45.0 2013 140 $ 21,000 1998 us Emerson Road 45.0 2015 142 $ 21,300 116 France Place 45.0 2010 100 $ 15,000 117 Fenimore Road 45.0 2013 1625 $ 243,750 1993 118 Harrison Drive 45.0 2013 520 $ 78,000 119 Richbell Road 45.0 2010 350 $ 52,500 120 Robbins Nest Lane 45.0 2013 120 $ 18,000 121 Rockingstone Avenue 45.0 2010 1700 $ 255,000 2003 122 Spruce Road 42 48 45.0 2000 120 $ 18,000 123 Rochelle Road 45 46 45.5 2010 280 $ 42,000 124 York Road 46 45 45.5 2012 450 $ 67,500 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 125 Bonnie Way 46 47 46.5 2017 340 _ $ 51,000 2004 126 Lester Place 45 48 46.5 2009 200 $ 30,000 _ 127 Prince Willow 47 47 47.0 2014 620 $ 93,000 built 1984, 1989 128 Moran 48 47 47.5 2005 130 $ 19,500 129 Parkland Avenue 4847 47.5 2013 80 . $ lz,000 2004 130 Briar Close 47 50 48.5 2004 135 . _ $ 20,250 131 Edgewater Road 48 49 48.5 2013 77 $ 11,550 2005 132 Forest Place 48 49 48.5 75 $ 11,250 133 Locust Terrace 48 49 48.5 2013 110 _ _ _ $ 16,500 2005 134 Larch Lane 50.0 2016 100 $ 15,000 135 Avon Road 50.0 2016 630 _ $ 94,500 1993, 2011(portions) 136 Byron Lane 50.0 2017 610 $ 91,500 1998& 1990 137 Bonnie Briar Lane 50.0 2017 545 $ 81,750 2008(town portion+) 138 Byron Place _ 50.0 85 $ 12,750 139 Carieon Avenue 50.0 2016 600 $ 90,000 _ 140 Colonial Avenue 50.0 2017 450 $ 67,500 141 Colonial Lane 50.0 2017 30 $ 4,500 142 Cooper Lane 50.0 2014 475 $ 71,250 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 143 Dante Street 50.0 2017 425 $ 63,750 144 Daymon Terrace 50.0 2017 375 $ 56,250 145 Dimitri Place 50.0 2017 150 $ 22,500 1994 146 Echo Lane 50.0 2015 420 $ 63,000 147 Edgewood Avenue 50.0 2017 1382 $ 207,300 148 Elkan Road 50.0 2015 320 $ 48,000 149 Ellsworth Road 50.0 2017 300 $ 45,000 iso Evergreen Lane 50.0 2014 210 $ 31,500 built 1986 151 Fenbrook Drive 50.0 2014 _ 350 $ 52,500 built 1986 152 Garden Road East 50.0 2017 290 $ 43,500 1993, 2007 153 Highland Road 50.0 2017 200 $ 30,000 154 Hillcrest Avenue 50.0 2017 380 $ 57,000 iss Homer Avenue 50.0 2017 300 $ 45,000 156 Howell Avenue 50.0 2016 480 $ 72,000 157 Iselin Terrace 50.0 2012 120 $ 18,0oo 158 Judson Street 50.0 2017 100 $ 15,000 159 Lookout Circle 50.0 2015 455 $ 68,250 160 Lundy Lane 50.0 2012 280 $ 42,000 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 161 Magnetti Circle 50.0 2015 50 $ 7,500 1984 162 Maple Hill Drive 50.0 2017 680 _ $ 102,000 1994, 2010 163 Maxwell Avenue 50.0 2017 275 $ 41,250 164 Mohegan Road 50.0 2016 775 $ 116,250 1997, 2011 165 Oakdale Road 50.0 2017 150 $ 22,500 2008 166 Orsini Drive 50.0 2017 320 $ 48,000 167 Overlook Terrace 50.0 2010 260 $ 39,000 168 Oxford Road 50.0 2017 320 $ 48,000 169 Rebeau Drive 50.0 2017 125 $ 18,750 170 Roxborough Road 50.0 2017 125 $ 18,750 171 Senate Place 50.0 2017 270 $ 40,500 172 Stoneyside Drive 50.0 2017 275 $ 41,250 173 Stratford Road 50.0 _ 2017 300 $ 45,000 174 Barnard Road 134 $ 20,100 175 Barnum Road 1990 140 $ 21,000 176 Boulder Circle 1986 80 $ 12,000 177 Boulder Road 170 $ 25,500 178 Campbell Lane 2003 125 $ 18,750 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 179 Cottage Circle 2000 20 $ 3,000 180 Country Lane 1997 150 $ 22,500 181 Country Road 1997 820 $ 123,000 182 Deane Place 240 $ 36,000 183 Glen Lane 1997 215 $ 32,250 184 Griffen Avenue 2009 1430 $ 214,500 185 Harmon Drive Old 315 $ 47,250 186 Hawthorne Road 105 $ 15,750 187 Hickory Grove Drive West 230 $ 34,500 188 Hidden Green Lane 250 $ 37,500 189 Highridge Road 130 1999 $ 299,850 190 Hillside Road 300 $ 45,000 191 Lakeside Drive 2011 280 $ 42,000 192 Lakewood Lane 130 $ 19,500 193 Leafy Lane 120 $ 18,000 194 Leatherstocking Lane 1997 470 $ 70,500 195 Little Farms Road 1990 110 $ 16,500 196 Maple Street 35 $ 5,250 FALL 2017 TOWN OF MAMARONECK ROAD PAVEMENT RATING SYSTEM HIGHWAY DEPARTMENT 197 Mardon Road 170 $ 25,500 198 Meadow Place 110 $ 16,500 199 Normandy Drive 2010 150 $ 22,500 zoo North Brook Road 190 $ 28,500 201 Park Hill Lane 2004 $ 202 Poccia Circle 275 $ 41,250 203 Preston Street 80 $ 12,000 204 Pryor Manor Road 2003 260 $ 39,000 205 Stonewall Lane 1989 600 $ 90,000 206 Valley Stream Road East 1994 250 $ 37,500 207 Valley Stream Road West 2002 150 $ 22,500 208 Villa Lane 2003 150 $ 22,500 209 Vine Place 2004 80 $ 12,000 210 West Brookside Drive 2008 600 $ 90,000 211 Windsor Street 100 $ 15,000 212 Winthrop Avenue 170 $ 25,500 213 Ormond Place 210 $ 31,500 CONDITION RATING 16-39 = OVERLAY 0-15= RE-CONSTRUCTION 40-50= ROUTINE MAINTENANCE FALL 2017 • Altieri, Stephen From: Wasp, Robert Sent: Wednesday, June 13, 2018 5:53 PM To: Altieri, Stephen Cc: Siligato, Anthony Subject: Firehouse Project Construction Cost Summary - CP-2017-29 (TA-17-07) Attachments: CCN - #1.pdf; CCN - #2.pdf; CCN - #3.pdf; CCN - #4.pdf; SCAN_CCN# 1-4_TA1707_ 05312018.pdf Steve, The following is a summary of construction charges/changes incurred for the Firehouse Floor Reinforcement/Repair Project (TA-17-07): • Capital Project CP-2017-29 originally received Board approval for the amount of$1,115,000.00 (additional $35,000 for Bonding) • Construction contract was awarded to Specialty Construction Systems, Inc. based upon the received low bid amount of: $1,135,000.00 • Removal of asbestos tile within the basement was undertaken through direct contract between the Town of Mamaroneck & Mr. Chimney & Envirowatch, Inc. o Mr. Chimney - $1,800.00 o Envirowatch (Air Monitoring) - $550.00 • To date a total of (4) change orders have been reviewed and approved as noted below. Approved changes orders and supporting backup is attached. o C/O#1 - Electrical supply to condensers - $14,740.00 o C/O#2 — Relocate refrigerant lines - $5,195.00 o C/O#3 — Demolition of basement concrete - $4,495.00 o C/O#4 — Structural steel modifications - $17,825.00 • Project QA/QC Inspection — Concrete and steel work requires quality assurance/control inspection services as outlined in the bid specifications. Connecticut Materials Testing. Inc was recently retained by the Town of Mamaroneck to complete this work. Estimated cost of material inspection and testing was previously provided by Griggs & Davis as $20,000. o Inspection Services - $20,000 • Future Projected Change Orders— Costs herein are presented as approximate. Estimates have not yet been prepared for these items: o Foundation Wall Waterproofing (Install of footing drain, foundation wall coating, sump pump ejector pit, backfill & restoration) - $50,000 o Apparatus Floor Plating (Stainless Steel Plates installed over Epoxy Coating for Protection for Tire Chain Damage) - $25,000 Total construction cost appears close to $1,275,000 based upon all current and future anticipated change order/ outside scope work items as summarized in the table below. Please keep in mind that this does not include any work associated with renovation of the Firehouse Basement and Engineering Consultant Costs BUDGET ITEM COST (S) Construction Contract Amount S 1,135,000.00 Asbestos Removal 1,800.00 S 550.00 CO =1 S 14,740.00 CO =? S 5,195.00 CO =3 S 4,495.00 CO =4 S 17,825.00 Inspection Services S 20,000.00 Foundation Wall \Vaterproofiry S 50,000.00 Apparatus Floor Plating S 25,000.00 SUBTOTAL S 1774,605.00 LNCREASE OVER BUDGET (S1.115M) S 159,605.00 Please feel free to contact me with any questions. Robert P. Wasp, P.E., C.D.T. Town Engineer Town of Mamaroneck 740 West Boston Post Road Mamaroneck, New York 10543 (P) 914-381-7835 rwasp(a.TownofMamaroneckNY.orq W - 2 • O ° 7 z Town of Mamaroneck 44'�.�F ' Town Center 740 West Boston Post Road, Mamaroneck, NY 10543-3353 . FC UN CFC FF OFFICE OF THE TOWN ADMINISTRATOR TEL: 914/381-7810 FAX: 914/381-7809 townadministrator@townofmamaroneck.org www.townofmamaroneck.org Memorandum To: Supervisor and Town Board Re: Community Solar Project-Hommocks Ice Rink/Hommocks Park Apartments Date: June 14, 2018 Previously we have mentioned that the Town would be seeking proposals to develop a Community Solar Project. Briefly described a community solar project establishes a site for the installation of solar panels. The energy generated from the panels is used to offset electrical costs for a specific area in a community or a certain population. In our case the project would target low and moderate income residents in the Hommocks Park Apartments and potentially low and moderate income residents in other parts of the Town. The size of the benefitted population is a function of the amount of electric power that can be generated from the solar field. A couple of months ago we met with the Housing Authority Board regarding this project and they appeared enthusiastic about the prospects of lowering electric costs for the residents of the Hommocks Park Apartments. The proposal is to install the solar panels on the Hommocks Ice Rink Roof which is approximately 30,000 square feet. The developer selected for the program will pay to the Town rent for the use of the ice rink roof and arrange for the development of the customer base for the project subject to approval by the Town. For the developer revenue is generated through a federal tax credit for operating the program and through the re-sale of discounted electricity. With allot of help from Frank Owens of the Sustainability Collaborative the final draft of the Request for Proposals has been completed and a notice posted in the newspaper announcing the availability of the document. The proposed schedule is as follows: • June 13, 2018 Issuance of RFP • June 26, 2018 Deadline for Questions on REP • July 2, 2018 Responses to Questions on RFP • July 12, 2018 RFP Submission Deadline • August 7, 2018 Interviews of Developers • August/Sept. 2018 Anticipated Selection of Developer • October/Nov. 2018 Final Lease Approval by Town Board I have attached a copy of the first two pages of the RFP which provides a detailed description of the project. If you would like a complete copy of the RFP, let me know. Stephen V. Altieri Town Administrator Printed on Recycled Paper TOWN OF MAMARONECK,NEW YORK REQUEST FOR PROPOSALS COMMUNITY SOLAR PROJECT HOMMOCKS ICE RINK 1. PROJECT OVERVIEW 1.1 Project Goals and Background The Town of Mamaroneck,New York, located in Westchester County,hereinafter the "Town", seeks to lease the roof of the Town owned `Hommocks Ice Rink"for a"Community Solar"photovoltaic project("Project"). The Town's goals for the Project are: a) provide Town residents,primarily low and moderate income Town residents, an opportunity to reduce their energy bills with clean energy; b) provide revenue to the Town from roof lease payments; c) educate Town residents of the benefits of solar; and d) help the Town meet its goals to reduce its carbon footprint. 1.2 Project Description The Town of Mamaroneck, through this RFP, intends to identify a project sponsor/developer that will be responsible for all aspects of developing and managing a community solar project located on the roof of the Hommocks Ice Rink located at 140 Hommocks Road, in the Town of Mamaroneck,New York, Section 4 Block 413 Lot 1. The area of the building roof is approximately 30,000 square feet. The sponsor will: A. Enter into a lease and/or lease option agreement with the Town for use of the roof of the Hommocks Ice Rink to prepare and process any necessary permit applications to the Town and any other Local, County or State agencies, and/or any other approval authority related to the development of the Project, at the sponsor's sole cost and expense. B. Negotiate and obtain authority from Con Edison Utility(Con Ed)to interconnect with the electric grid and construct the solar facility and all improvements necessary to achieve such interconnection at the project sponsor's sole cost and expense. C. Solicit and sign up members who will be customers for the electricity produced for the project with a special emphasis on securing customers within the Town of Mamaroneck and taking steps to ensure that low and moderate income households will be encouraged to sign up as members. D. Negotiate all financial arrangements required for development of the Project and for participation in a Community Solar program,with residents participating in the program. E. Manage billing and all other interactions with Con Ed. 1 F. Provide ongoing members management throughout the project lifetime, including interfacing with Con Ed regarding charges to customers of the facility, as well as credentials from any organization involved in subscriber management. G. Maintain the solar facility in compliance with all Federal, State, County or local regulations regarding such facility. H. Provide plan to decommission and remove the solar facility at the end of this contract, if Town determines it is necessary. 1.3 Site Description The site is the roof of the Hommocks Ice Rink located at 140 Hommocks Road Town of Mamaroneck,Westchester County. This facility is used year round for ice skating and Recreation Programs. The Town of Mamaroneck's zoning code permits large scale solar facilities in the zoning district in which the ice rink is located,which may be subject to site plan review by the Town of Mamaroneck Planning Board. 1.4 Proposed Customers The Town seeks the project sponsor to provide a priority process of enrollment,to the extent allowable by law, to ensure the maximum number of Town of Mamaroneck residents will have the first opportunities to participate as customers of the project. The Town also seeks that the project sponsor provide a program and criteria to ensure that the maximum percentage of customers from the Town of Mamaroneck will be low to moderate income("LMI")households pursuant to the New York Community Solar Program. The Town has identified the following potential LMI households that might like to participate in the program. a) Hommocks Park Apartments, 54 units. The Town has spoken to the housing authority board of this complex as well as the managing agent and both parties would like to assist with offering a community solar program to its residents. b) Other identified LMI households. 1.5 Member Recruitment The project sponsor shall provide its plans for recruiting such Town residents and low to moderate income residents of the Town for solar and should identify those activities the Town of Mamaroneck can undertake to assist in those efforts. 2. CONTRACT TERMS AND REQUIREMENTS The response must demonstrate the respondent's willingness and ability to comply with the following expected contract requirements. 2 June 12, 2018 To: Town of Mamaroneck Supervisor Nancy Seligson cc: Stephen Altieri; Sue Odierna From: Elisabeth Radow RE: PROPOSAL FOR TOWN OF MAMARONECK COMUNITY GARDEN Community gardens bring people together with a shared interest while promoting self-sustenance and improved quality of life; in short, goals of our Sustainability Collaborative. Establishing an accessible Town garden for apartment dwellers, residents without the yard space to garden, student groups and possibly even local restaurant establishments wanting to grow their own vegetables and herbs locally would provide a boost in quality of life to those of us who wish to farm locally. It would likewise benefit neighbors in our community who rely in whole or part on food donation for meals. I propose using the back one-half of the field across from Memorial Park to establish the community garden. It is within walking distance of the apartments and has a ready source of water to tap into. In addition, it is a central location for student groups who might want to use a raised bed as an outdoor classroom. The Metro North parking lot which is empty on weekends provides parking space for residents who rent space in the garden. Our Neighbors Love their Community Gardens. The City of New Rochelle has two established community gardens, one on Lincoln Avenue near City Hall and the second in Ward Acres across from The Ward School off of Quaker Ridge Road, each of which can serve as a model for the Town of Mamaroneck. Links follow: GROW LINCOLN PARK COMMUNITY GARDEN https://www.newrochelleny.com/Facilities/Facility/Details/grow-Lincoln-Park-Community- Garden-58 WARD ACRES COMMUNITY GARDEN https://www.newrochelleny.com/DocumentCenter/View/3 3 6/Ward-Acres-Community-Gardens- Rules-and-Application The following is information I gathered from Linda Tarrant-Reid who was instrumental in developing Grow Lincoln Park,the community garden in New Rochelle located next to the Boys and Gils Club off of Lincoln Avenue. Linda started this garden approximately 7 years ago with$3,000. The funds were used to construct 30 raised beds using custom cut cedar planks from Home Depot and the volunteer services of Habitat for Humanity (Jim Killoran). See through wire fencing was installed around the perimeter of the garden space to keep out animal intruders and to discourage theft. The Grow Lincoln Park community garden also has (i)two garden sheds with gardening implements the renters can use(ii) wheel barrows, (iii) a mulch heap, (iv) compost; (v)rain barrels, and(v)picnic tables where renters gather. Construction is ADA complaint. Initial renter-gardeners established their raised beds using soil brought in by them. They top it off each year with community compost. Residents who rent one or more raised beds pay their fee to the New Rochelle Parks and Recreation Department for the season(currently$30/bed for residents and $50/bed for commercial establishments; this fee will increase next year). I would propose we charge a higher rate to begin to help cover costs. Renters get a key to the space. The municipality provides the insurance and does not charge for water usage. Funding can come from CDBG(Community Development Block Grants), rental payments, Westchester Parks Foundation, Parks and Recreation Gift Account. Communal meals are held each season. A little music too. Speakers come to this venue for educational forums. I have also spoken to Joseph Rogot who established with others the Ward Acres Community Garden. This is a lovely secluded spot with in-ground plots surrounded by fencing. Joe emphasized the benefits to community that come from a"community garden."Linda Tarrant- Reid and Joe Rogot are available to answer question regarding establishing a community garden here. Establishing a Community Garden in our Town of Mamaroneck requires approval from the Town Council and the following: 1. Identifying an accessible space: Proposed location is the back one-half of the open field across the street from Memorial Park. 2. Develop a mission/mission statement for the community garden and its participants that requires a commitment to use chemical free fertilizer/pesticides, a willingness to donate a portion of produce for food insecure members of the community; an esprit of community and other goals, to be determined. 3. Develop a layout plan for the garden. 4. Develop a budget and sources of funds. 5. Determine if the Town will permit access to water to grow the garden. 6. Determine whether Parks and Recreation will agree to collect annual rental fee for the raised beds. 7. Community outreach to determine the extent of community interest to establish an accessible community garden. 8. Identify/select a paid part-time coordinator to administer garden operations. 9. Purchase and pick up building materials. 10. Arrange for volunteer workers to construct the raised garden beds; with oversight by Jim Killoran/Habitat for Humanity jim@habitatwc.org Installation of the fence, garden shed(s),water hook-up, rain barrels, picnic table(s), etc. 11. Develop House Rules for maintaining a safe, clean space. ° 97 o f%" . z Town of Mamaroneck •wIli Town Center • 740 West Boston Post Road, Mamaroneck, NY 10543-3353 FOUNOEDE •D,ub, TEL: 914/381-7810 OFFICE OF THE TOWN ADMINISTRATOR FAX: 914/381-7809 saltieri@townofmamaroneckNY.org Memorandum To: Supervisor &Town Board Re: 2017 Financial Audit Date: June 15, 2018 Both at the worksession and the general business meeting, a representative from O'Connor Davies will discuss with the Board the financial audit for the fiscal year ending December 31, 2017. Attached for your review are the following: • Auditors Management Letter • Audit of the Town's Deferred Compensation Plan • Audited Financial Statements and Supplementary Information Stephen V. Altieri Town Administrator O PKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Town of Mamaroneck, New York Report to Those Charged with Governance December 31 , 2017 May 18, 2018 Prepared by Alan Kassay, CPA Partner KNOW akassay(a�pkfod.com CPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 May 18, 2018 The Honorable Supervisor and Members of the Town Board Town of Mamaroneck, New York 740 West Boston Post Road Mamaroneck, New York 10543 We have audited the financial statements of Town of Mamaroneck, New York as of and for the year ended December 31, 2017 and have issued our report thereon dated May 18, 2018. Professional standards require us to communicate with you regarding audit matters that are, in our professional judgment, significant and relevant to those charged with governance ("TCWG") in overseeing the financial reporting process. This communication is intended to provide you with these required communications as well as other findings and information regarding our audit. We are pleased to be of service to you and the Town of Mamaroneck, New York and appreciate the opportunity to present our audit findings to you. We are also pleased to discuss other matters which may be of interest to you and to answer any questions you may have. This information is intended solely for the information and use of TCWG and management of the Town of Mamaroneck, New York and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, f AF 69V ( 1.02 li ka01. 4 ZIP PKF O'Connor Davies, LLP 2 • (N.,0 PKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Contents Status of the Audit 4 Required Communications and Other Matters 5 Internal Control Over Financial Reporting 10 On the Horizon 14 Appendices 1 -Corrected and Uncorrected Misstatements 2 - Management Representation Letter 3-About PKF O'Connor Davies, LLP 3 CPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Status of the Audit Audit of Financial Statements F. Audit fieldwork is complete. The following audit related items remain outstanding: • The financial statements have been drafted and reviewed by management. • We have issued an unmodified report on the financial statements. 4 PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1191 Required Communications and Other Matters Required Item Comments Auditor's responsibility We have communicated such information in our engagement letter to under professional you dated January 22, 2018. Generally, these responsibilities standards and planned include: scope and timing of the audit • Forming and expressing an opinion on the financial statements. • Obtaining reasonable assurance that the financial statements are free of material misstatements, whether caused by error or fraud. • Accumulating and communicating uncorrected misstatements to Those Charged with Governance ("TCWG"). • Maintaining professional skepticism. • Communicating audit related matters that are, in our professional judgment, significant to TCWG. Supplementary information Our responsibility for the supplementary information accompanying accompanying the financial the financial statements is to evaluate the presentation of the statements supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. With respect to such supplementary information, we made certain inquiries of members of management and evaluated the form, content and methods of preparing the information to determine that the information complies with US GAAP, the method of preparing it has not changed from the prior period and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 5 ‘-# PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Required Item Comments Other information in Our responsibility as auditors for other information in documents documents containing containing the audited financial statements does not extend beyond audited financial statements the financial information identified in the audit report, and we are not required to perform any procedures to determine that such other information is properly stated. Our responsibilities under In connection with our audit we performed tests of the Entity's the Yellow Book compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Our responsibilities In accordance with Uniform Guidance, we examined, on a test basis, under Uniform Guidance evidence about the Entity's compliance with the types of compliance (Federal Single Audit) requirements described in the"U.S. Office of Management and Budget (OMB) Uniform Guidance Compliance Supplement"applicable to each of its major federal programs for the purpose of expressing an opinion on the Entity's compliance with those requirements. While our audit provided a reasonable basis for our opinion, it does not provide a legal determination on the Entity's compliance with those requirements. Responsibilities of Management's responsibilities include: management and TCWG • The fair presentation of the financial statements, including the selection of appropriate accounting policies. • Establishing and maintaining effective internal control. • Complying with laws, regulations, grants and contracts. • Providing the auditors with all financial records and related information and a signed representation letter. TCWG are responsible for communicating with the auditors and overseeing the financial reporting process. Both management and TCWG are responsible for: • Setting the proper tone at the top. • Designing and implementing policies and controls to prevent and detect fraud. 6 PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Required Item Comments Qualitative aspects of The significant accounting policies are described in Note 1 to the accounting practices - ' financial statements. There have been no initial selections of Accounting Policies accounting policies and no changes in significant accounting policies or their application during the reporting period that had a significant impact on the financial statements. The accounting policies of the Entity conform to U.S. generally accepted accounting principles as applicable to state and local governments. The Entity's reports are based on all applicable GASB pronouncements. Qualitative aspects of No matters have come to our attention that would require us to inform accounting practices — you about the methods used to account for significant unusual Significant Unusual transactions. Transactions Qualitative aspects of Accounting estimates made by management are an integral part of the accounting practices - financial statements and are based on management's knowledge and Accounting Estimates and experience about past and current events and assumptions about Management's Judgment future events. Actual results could differ from those estimates. Certain accounting estimates are particularly sensitive because of their significance to financial statements and their susceptibility to change. The most sensitive estimates affecting the financial statements are: • Actuarial assumptions related to the Other Post Employment Benefit Obligations ("OPEB") • Actuarial assumptions and proportionate share calculations related to pension obligations • Asset lives for depreciable capital assets • Estimates of certain receivable balances and allowances for uncollectible amounts • Estimates for certain operating and long-term liabilities Management believes that the estimates used and assumptions made are adequate based on the information currently available. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements as a whole. 7 CPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1191 Required Item j Comments Qualitative aspects of , Certain financial statement disclosures involve significant judgment accounting practices - and are particularly sensitive because of their significance to financial Financial Statement statement users. The most sensitive disclosure affecting the financial Disclosures statements are: • Other post employment benefit obligations payable • Pension plan information • Outstanding bonded indebtedness • Fund balances The financial statement disclosures are consistent and clear. Difficulties encountered in We encountered no significant difficulties in dealing with management performing the audit relating to the performance of our audit. Corrected and uncorrected Professional standards require us to accumulate all known and likely misstatements misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, corrected misstatements that were brought to the attention of management as a result of our audit procedures are also included in Appendix 1. Disagreements with For purposes of this communication, a disagreement with management management is a matter, whether or not resolved to our satisfaction, concerning financial accounting, reporting, or auditing, which could be significant to the financial statements or the auditors' report. No such disagreements arose during the course of the audit. Management We have requested certain representations from management that are representations included in the management representation letter (see Appendix 2). Management's In some cases, management may decide to consult with other consultations with other accountants about auditing and accounting matters. Management accountants informed us that, and to our knowledge, there were no such consultations with other accountants. 8 PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1591 Required Item Continents Auditor independence We affirm that PKF O'Connor Davies, LLP is independent with respect to the Entity in accordance with relevant professional standards. Significant issues discussed We generally discuss with management a variety of matters, including with management prior to the application of accounting principles and auditing standards, retention business conditions affecting the Entity and business plans and strategies that may affect the risks of material misstatement. None of the matters discussed and our responses thereto were a condition to our retention as auditors. 9 PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Town of Mamaroneck, New York(the"Entity") internal control over financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Accordingly, we express no such opinion. Professional standards require that we communicate to you, in writing, all significant deficiencies and/or material weaknesses in internal control that we identify in performing our audit. For this purpose, deficiencies in internal control are categorized as follows: • A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. • A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. • A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. We did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined above. This communication is intended solely for the information and use of management and others charged with governance and is not intended to be and should not be used by anyone other than these specified parties. We will be pleased to discuss these communications and comments in further detail at your convenience, or to assist you in implementing the recommendations. Pi r c'e-M ._;ietete...,s, ZIP PKF O'Connor Davies, LLP Harrison, New York May 18, 2018 10 PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1/191 Town of Mamaroneck, New York Control Deficiencies • Capital Projects Fund Inactive Projects The lack of financial activity in a capital project over an extended period of time may be an indication of the project's completion. Upon determination that a capital project has been completed, the governing board should pass a resolution indicating this status and directing the disposition of the unexpended proceeds. If the unexpended balance of the project consists of moneys provided from obligations, its use will be restricted to the payment of outstanding indebtedness. If the remaining balance consists of a return of a contribution from an operating fund, it should be returned to that fund to be used for any lawful purpose. Our review of the Capital Projects Fund indicated that the Drainage Improvements Bonnie Way, Storm Drainage Improvements, Water District Capital Improvement Projects, Water Capital Improvement, Sanitary Sewer Pump Station, Highway Garage Building Improvements, Sheldrake Improvements Projects, Storm Water Drainage and Conservation Trails, have all remained inactive in excess of one year. Recommendation We suggest these projects be reviewed to determine the status of completion and the proper disposition of available funds or necessary funding of deficit balances. Over-expended and projects with fund deficits We noted that seventeen projects, (Police Headquarters Renovation $20,803, Three Water Capital Improvements Projects for $125,161, $317,773 and $265,816, Weaver Street Sidewalk Extensions $38,685, Passenger Bus $2,839, Recreation Facility Improvement $3,775, Parking Lot Town Center $218,771, Police Vehicles $808, Roads, Sidewalk and Curbs $688,751, Sanitation Vehicle $253, Town Center Building Improvement$421, Computer Software$9,795, Computer Hardware$31,840, Parking Lot Town Improvement $50,631, Pryor Manor Bridge Improvement $386 and Fire Turnout Gear Equipment $191) have fund deficits for a total of $1,776,699 and several projects have expenditures that exceeded their authorized budgets for a total of$707,893. Recommendation We recommend that Management review the status of these projects and determine a resolution to fund these projects to eliminate the deficits. 11 PKF aCONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Town of Mamaroneck, New York Control Deficiencies • Special Purpose Fund Inactive Accounts Our audit of the trust accounts indicated that the following trust accounts 350th Anniversary Fund ($10,108), and the Beautification Trust($2,343) had no activity in the current year, with the exception of the accumulation of interest. Recommendation We recommend that the trust accounts be analyzed to verify their intended purposes and to determine any future uses of these funds. If deemed appropriate, the Town Board should authorize these funds to be transferred to the appropriate operating funds. • Agency Fund Old Deposits The Agency Fund is provided to account for assets held by the Town in a custodial capacity, as agent for individuals, private organizations, other governmental units and/or other Town funds. Our audit disclosed that there are three deposit accounts with the Town, which have deposits, which are greater than one year old. The amounts on deposit, which are greater than one year old, are as follows: 2017 2016 Erosion Control Deposits $ 238,177 $ 209,678 Tree Maintenance Bond 26,265 9,897 Street Opening Deposits 15,600 40,400 Recommendation We recommend that the Town analyze the balances in these accounts so that a determination may be made as to the proper disposition of the funds. If it is determined that the amounts are no longer due to depositors, they should be transferred to the appropriate operating fund. 12 ‘-# PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Town of Mamaroneck, New York Control Deficiencies • Segregation of Duties Payroll and Salary Modification Access The individual responsible for processing payroll also has access to add, delete and modify employee information as well as salary information. In addition, it was noted that management has access to a "Payroll Audit Report," which identifies any changes made during the pay period within the system relating to employee information and salary. Recommendation There are limitations on obtaining adequate segregation of duties due to the minimal size of the staff. The most efficient/effective method to ensure there are proper controls would be to have the Payroll Audit Report reviewed by a member of management not directly involved in the payroll process. The report should be maintained and the review should be documented within the report. In addition, the Town is currently in the process of implementing a new payroll system, "LOGICS", and is training additional staff in the payroll processes, which will correct the above control deficiencies. • Housing of Urban Development Single Audit Failed Inspections Testing During our inquiry with the client, we were informed that the initial period when McCright&Associates ("Contractor") started performing inspections on behalf of the Town, there were failed inspections in which deficiencies were not completed timely. Recommendation We noted that the amount of inspections not completed timely in relation to the population as a whole was deemed insignificant. The Town has corrected this deficiency between McCright&Associates. The Town should continue to maintain clear lines of communication with this company going forward. 13 %E' PKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 On the Horizon GASB Statement No. 75: Accounting and Financial Reporting for Postemployment Benefits (OPEB) Other than Pensions In June 2015, GASB issued Statement No. 75 "Accounting and Financial Reporting for Postemployment Benefits Other than Pensions."This Statement replaces the requirements of GASB Statement No. 45 "Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions". The key difference in the new standard for New York municipalities and school districts (since New York State has not authorized the establishment of an Other Postemployment Benefit ("OPEB")trust fund) is that these governments must now report the total OPEB liability related to their employees. The prior standard allowed for the amortization of prior service cost over a thirty year period. The statement requires municipalities and school districts to present more extensive note disclosures and required supplementary information ("RSI") about their OPEB liabilities. Among the new note disclosures is a description of the effect on the reported OPEB liability of using a discount rate and a healthcare cost trend rate that are one percentage point higher and one percentage point lower than that assumed in the financial statements. The new RSI includes a schedule showing the causes of the increase and decreases in the OPEB liability and a schedule comparing a government's actual OPEB contributions to its contribution requirements. This new standard parallels the pension standard in GASB Statement No. 68 "Accounting and Financial Reporting for Pensions". Together, these two new standards provide consistent and comprehensive disclosure for all postemployment benefits. The provisions of this Statement are effective for fiscal years beginning after June 15, 2017 (i.e., the Town's financial statements for the year ending December, 2018). GASB Statement No. 84 —Fiduciary Activities In January 2017, GASB issued Statement No. 84 "Fiduciary Activities". The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. Previously issued guidance lacked the necessary clarity to determine when a government had fiduciary responsibility for a certain activity. This lack of clarity has resulted in a divergence in practice among financial statement preparers and auditors. GASB Statement No. 84 establishes criteria for identifying fiduciary activities. The focus of the criteria is on (a) whether a government controls the assets of the fiduciary activity and (b) the beneficiaries with whom a fiduciary relationship exists. A government is considered in control of the assets if the government holds the assets or has the ability to direct the use of the assets in a manner that provides benefits to the specified or intended recipients.The assets also cannot be derived from the government's own source revenues(or from government-mandated or voluntary non-exchange transactions) and must also have one or more of the following characteristics related to whom the assets will benefit: 1) Be administered through a trust 2) The government itself is not the beneficiary 3) Dedicated to providing benefits in accordance with the benefit terms 4) Legally protected from the government's creditors for the benefit of individuals and the government has no administrative or direct financial involvement with the asset 14 PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 GASB Statement No. 84 — Fiduciary Activities (Continued) 5) For the benefit of individuals and government has no administrative or direct financial involvement with the assets An activity meeting the above criteria should be reported in the basic financial statements in one of the following four fiduciary funds, as applicable: 1) Pension (and other employee benefit) trust funds 2) Investment trust funds 3) Private-purpose trust funds 4) Custodial funds Custodial funds should report fiduciary activities that are not reported in one of the first three fiduciary funds noted above. The use of Agency funds has been eliminated with this Statement and replaced with custodial funds. Governments with activities meeting the above criteria will present a Statement of Fiduciary Net Position (i.e., assets, deferred outflows of resources, liabilities, deferred inflows of resources and fiduciary net position) and a Statement of Changes in Fiduciary Net Position (i.e., additions and deductions) for each fiduciary fund type. Previous guidance for agency funds only required the presentation of assets and liabilities, whereas the custodial funds require the same elements as the other fiduciary funds, including net position. The provisions of this Statement are effective for fiscal years beginning after December 15, 2018 (i.e., the Town's financial statements for the year ended December 31, 2019) with earlier application encouraged. GASB Statement No. 87 — Leases Potentially pervasive changes are coming to lease accounting. Under the provisions of GASB Statement No. 87, nearly every lease will be considered a capital lease. While local governments and school districts would most likely be lessees in these kinds of transactions, some might also be involved in transactions where they are the lessor of these assets. Under this standard, lessees will now be required to recognize in their entity-wide Statement of Net Position a lease liability and an intangible right-to-use lease asset when the lease begins. The intangible asset will be similar to other capital assets by requiring amortization over the life of the lease term, similar to depreciation of tangible capital assets. Also similar to other capital assets, leases will need to be assessed for impairment. Lessors will do the opposite. Lessors will recognize a lease receivable and a deferred inflow of resources at the start of a lease. The receivable will be reduced and revenue recognized as lease payments are received each year. The lessor will continue to report the capital asset on its own Statement of Net Position. Governments should review this standard early to anticipate what changes might need to be made to policies, accounting procedures, laws and regulations. The provisions of this Statement are effective for fiscal years beginning after December 15, 2019 (i.e., the Town's financial statements for the year ended X)OX, 2020) with earlier application encouraged. 15 GPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1691 Uniform Guidance Procurement Standards - OMB Extends Procurement Grace Period for One More Year The Office of Management and Budget (OMB) has updated guidance for the procurement grace period available to non-Federal entities under Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The update, as included in the Federal Register, allows for an additional one-year grace period for implementation of the procurement standards set forth in the Uniform Guidance (2 CFR 200.317 through 200.326). Including the grace period, the implementation date for the revised procurement standards will be effective for fiscal years beginning on or after December 26, 2017. A non-Federal entity that chooses to take advantage of this grace period must document its choice in its internal records, noting whether it's in compliance with the previous or revised procurement standards. The new procurement standards apply to procurement of goods and services directly charged to a Federal award. The standards don't apply to indirect costs and procurement of goods and services not charged to a Federal award. The standards have a strong emphasis on procurement methodology to achieve the goals of increased accountability and competition. The changes are designed to better mitigate waste, fraud and abuse. General Requirements of the New Guidance -The following are the general requirements: • Non-Federal entities (such as not-for-profit entities and local governments) receiving Federal awards must have their own documented (written) procurement procedures that conform to reflect Federal law, Uniform Guidance standards, and any State laws and regulations. • Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms of their contracts or purchase orders. • Non-Federal entities must maintain written conflict-of-interest policies if its employees engage in the selection, award and administration of contracts. No employee, officer or agent may participate in the selection, award, or administration of a contract funded by a Federal award if he or she has an actual or apparent conflict of interest. This also applies to organizational conflicts of interest if the non-Federal entity is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization. • Non-Federal entities should focus on greater economy and efficiency to promote cost-effective use of services during the procurement process, and must avoid using Federal funds for the acquisition of unnecessary and duplicative items. • Non-Federal entities must document and maintain records sufficient to detail the history of the procurement steps and activities required to be completed. This includes the rationale for the type of procurement, selection of contract type, and the basis for the contractor selection and price. 16 ��?PKF �•J O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Five Methods of Procurement-The Uniform Guidance outlines five methods of procurement: • Micro-Purchases: Purchases that individually do not exceed $3,500. To the extent practicable, micro-purchases must be distributed equitably among qualified suppliers. No bid or quote process is required. • Small Purchases: Used for purchases up to the Simplified Acquisition threshold, which is currently $150,000. These include small and informal purchase methods for securing services, supplies, or other property. Price or rate quotes must be obtained from an adequate number of qualified sources. • Sealed Bids: Purchases over $150,000. Bids are publically solicited and a fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all material terms and conditions of the invitation for bids, is the lowest in price. This method is most commonly used for procurement of construction contracts. • Competitive Proposals: Purchases over $150,000. This method requires formal solicitation from an adequate number of qualified sources, fixed-price or cost-reimbursement contracts, and is used when sealed bids are not appropriate. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered. • Noncompetitive Proposals: These proposals only apply under unique circumstances. Examples include when an item is available only from one source, when a public emergency does not allow time for a competitive proposal process, when the Federal awarding agency authorizes, or when the competition is deemed inadequate after proper solicitation. Proposed Changes to Government Auditing Standards The U.S. Government Accountability Office has proposed changes to the Government Auditing Standards. These changes will be the first changes since 2011 and are designed to ensure the standards continue to meet the needs of the federal, state and local government communities and the public these bodies serve. The following significant new audit requirement was added to the 2017 exposure draft (proposed new standards): As part of an audit under Government Auditing Standards, if auditors become aware of waste or abuse that could be quantitatively or qualitatively material to the financial statements, auditors should perform additional audit procedures to ascertain the potential effect on the financial statements. Included in the application guidance are these definitions: Waste is the act of using or expending resources carelessly, extravagantly, or to no purpose. Waste involves the taxpayers not receiving reasonable value for money in connection with any government- funded activities because of an inappropriate act or omission by parties with control over or access to government resources. Importantly, waste can include activities that do not include abuse and does not necessarily involve a violation of law. Rather, waste relates primarily to mismanagement, inappropriate actions, and inadequate oversight. 17 GPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Abuse is behavior that is deficient or improper when compared with behavior that a prudent person would consider reasonable and necessary business practice given the facts and circumstances, but excludes fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements. Abuse also includes misuse of authority or position for personal financial interests or those of an immediate or close family member or business associate. Because the determination of abuse is subjective, auditors are not required to perform procedures to detect abuse in financial audits. Auditors may discover that abuse is indicative of fraud or noncompliance with provisions of laws, regulations, contracts, and grant agreements. New Rules for Auditor Involvement in Exempt Offering Documents In July 2017, the Auditing Standards Board released Statement on Auditing Standards No. 133 Auditor Involvement With Exempt Offering Documents. This addresses the auditor's responsibilities when the auditors' report on the financial statements is included, or incorporated by reference, in an exempt offering document such as for municipal bond offerings AND the auditor is considered "involved" in the exempt offering document. An auditor is considered involved in an exempt offering document if the auditor: 1. assists the entity in preparing information (in addition to the financial statements) that will be included in the document, 2. reads a draft of the exempt offering document at the entity's request, 3. auditor issues a comfort or similar letter or an agreed-upon procedures report on information included in the exempt offering document, 4. participates in due diligence discussions with underwriters, placement agents, broker-dealers, or other financial intermediaries in connections with the exempt offering, 5. issues any attestation report on information relating to the exempt offering, 6. provides written agreement for the use of an auditors' report in the exempt offering, 7. updates an auditors' report for inclusion in the exempt offering document When the auditor is considered involved, the auditor is required to do additional procedures outside the scope of the audit. These steps include reading the offering document in order to identify material inconsistencies with the audited financial statements. The auditor must also perform procedures to review events subsequent to the issuance of the audit report and up to the issuance of the exempt offering document. Finally, the auditor must obtain written representations from management. This should be done before the offering document is released. Although this standard is not effective until June 15, 2018, it is very similar to what was formally included in the AICPA's Audit and Accounting Guide: State and Local Governments. 18 GPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1191 Appendix 1 Corrected Misstatements and Uncorrected Misstatements Town Outside Village To reclass the reserve for pre-paid fund balance designation for financial statement purposes. B.0000.0909 FUND BALANCE UNRESERVED.. 265,819 B.0000.0895 FUND BALANCE-RESERVE FOR PREPAID 265,819 To designate for subsequent year per 2018 Adopted Budget B.0000.0909 FUND BALANCE UNRESERVED.. 61,010 B.0000.0910 FUND BAL-DESIGNATED.. 61,010 Highway To record CY reserve for prepaid expenditures DB.0000.0909 FUND BALANCE UNRESERVED.. 340,207 DB.0000.0895 FUND BALANCE-RESERVE FOR PREPAID 340,207 To adjust the designation for subsequent years according to the 2018 Adopted Budget DB.0000.0909 FUND BALANCE UNRESERVED.. 24,400 DB.0000.0910 FUND BAL-DESIGNATED 24,400 Fin Protection District To book P&L activity for the Service Award Plan,except the actual contribution expenditure and revenue SF.0000.0450 SERVICE AWARD INVESTMENT 28,289 SF.9000.9086 SERVICE AWARDS-VOL.. 5,171 SF.0000.2401 INTEREST EARNINGS.. 33,460 To remove Pension Trust Activity SF.0000.0450 SERVICE AWARD INVESTMENT 53,180 SF.0000.9086 SERVICE AWARDS-VOL.. 53,180 To adjust Reserve for Service Awards SF.0000.0909 FUND BALANCE UNRESERVED.. 81,469 SF.0000.0851 RESERVE FOR SERVICE AWARDS 81,469 PKFOD Entry:To establish Reserve for Prepaid Expenditures SF.0000.0909 FUND BALANCE UNRESERVED.. 190,970 SF.0000.0895 FUND BALANCE-RESERVE FOR PREPAID 190,970 To adjust designation for subsequent years according to the 2018 Adopted Budget SF.0000.0909 FUND BALANCE UNRESERVED.. 47,200 SF.0000.0910 FUND BAL-DESIGNATED 47,200 Ambulance PKFOD entry:To establish Reserve for Prepaid Expenditures SM.0000.0909 FUND BALANCE UNRESERVED.. 44,655 SM.0000.0895 FUND BALANCE-RESERVE FOR PREPAID 44,655 To adjust the designation for subsequent years according to the 2017 Adopted Budget SM.0000.0909 FUND BALANCE UNRESERVED.. 31,015 SM.0000.0910 FUND BAL-DESIGNATED.. 31,015 Debt Service To record bond refunding 12/12/2017 V.1380.4022 BOND AND NOTE EXPENSE 124,916 V.9991.4350 PAYMENT TO ESCROW AGENT 6,967,073 V.0000.2711 PREMIUM ON OBLIGATIONS 51,989 V.0000.5791 PROCEEDS OF ADVANCE REFUNDING BONDS 7,040,000 to adjust appropriated fund balance for 2018 adopted budget V.0000.0909 FUND BALANCE UNRESERVED.. 78,220 V.0000.0914 ASSIGNED APPROP.FUND BALANCE 78,220 19 GPcF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1891 Appendix 2 Management Representation Letter 20 o , s fr- Town of Mamaroneck Town Center 740 West Boston Post Road,Mamaroneck,NY 10543-3353 OFFICE OF THE COMPTROLLER TEL:914/381-7850 FAX:914/381-2110 towncomptrollcr@townofinamaroneckny.org May 18, 2018 PKF O'Connor Davies, LLP 500 Mamaroneck Avenue Suite 301 Harrison, New York 10528 This representation letter is provided in connection with your audit of the financial statements of the Town of Mamaroneck New York, which comprise the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information as of December 31, 2017, and the respective changes in financial position and, where applicable, cash flows for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, (having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves) as of the date of this letter, the following representations made to you during your audit. Our Responsibilities 1) We acknowledge that we have fulfilled our responsibilities for: a) The preparation and fair presentation of the financial statements in accordance with US GAAP and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. b) The design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; and c) The design, implementation, and maintenance of internal control to prevent and detect fraud. 2) We understand that the term "fraud" refers to intentional acts by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception that results in a misstatement in financial statements. Two types of intentional misstatements are relevant to your audit — misstatements resulting from fraudulent financial reporting and misstatements resulting from misappropriation of assets. Fraudulent financial reporting involves intentional misstatements, including omissions of amounts or disclosures in financial statements to deceive financial statement users. Misappropriation of assets involves the theft of an entity's assets. qtr toil Printed on Recycled Paper 3) We are further responsible for reviewing, accepting and processing the standard, adjusting, or correcting journal entries that you proposed during the course of your engagement. We cc#ifirm that we designated a suitably qualified individual who understands the nature and impact of the proposed entries to the financial statements, and we accept responsibility for the proposed entries that we authorized and processed. 4) We acknowledge our responsibility for presenting the combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards in accordance with US GAAP, and we believe the combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards, including its form and content, is fairly presented in accordance with US GAAP. The methods of measurement and presentation of the combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. Financial Statements 5) The financial statements referred to above are fairly presented in conformity with US GAAP and include all disclosures necessary for such fair presentation. In that connection, we specifically confirm that: a) The Town's accounting policies, and the practices and methods followed in applying them, are appropriate and are as disclosed in the financial statements. b) There have been no changes during the period audited in the Town's accounting policies and practices. c) All material transactions have been recorded in the accounting records and are reflected in the financial statements. 6) Significant assumptions we used in making accounting estimates, including those measured at fair value, are reasonable. 7) The following, where they exist, have been appropriately disclosed to you and accounted fbr and/or disclosed in the financial statements in accordance with the requirements of US GAAP: a) The identity of all related parties and related party relationships and transactions ncluding revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guaranties, and amounts receivable from or payable to related parties. b) Guarantees, whether written or oral, under which the Town is contingently liable, if any. c) The effects of all known actual, possible, pending or threatened litigation, claims, and assessments. d) The identity of the Town's related parties and all the related party relationships and transactions of which we are aware. 8) We have evaluated events subsequent to the date of the financial statements through the date of this letter, and no such events have occurred which would require adjustment or disclosure in the financial statements. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements. 9) We are in agreement with the adjusting journal entries you have proposed, and they have been posted to the Town's accounts. Information Provided 10)We have provided you with: a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters. b) Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices, if applicable. c) Additional information that you have requested from us for the purpose of the audit. d) Unrestricted access to persons within the Town from whom you determined it necessary to obtain audit evidence. e) Completeness and availability of all minutes of the meetings of the Town Board or summaries of actions of recent meetings for which minutes have not yet been prepared. 11)We have disclosed to you the results of our assessment of the risk that the financial stbtements may be materially misstated as a result of fraud. 12)There are no deficiencies in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the Town's ability to initiate, authorize, record, process, and report financial data reliably in accordance with US GAAP. 13)We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a) Management, b) Employees who have significant roles in internal control, or c) Others where the fraud could have a material effect on the financial statements. 14)We have no knowledge of any allegations of fraud or suspected fraud affecting the Town's financial statements communicated by employees, former employees, regulators, or others. 15)We have no knowledge of instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when preparing financial statements. Government—specific 16)We have identified to you any previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. 17)The Town has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. 18)We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts, and legal and contractual provisions for reporting specific activities in separate funds. 19)We have identified and disclosed to you all instances that have occurred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that we believe have a material effect on the financial statements or other financial data significant to the audit objectives, and any other instances that warrant the attention of those charged with governance. 20)We have identified and disclosed to you all instances, which have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that we beligve have a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives. 21)We have identified and disclosed to you all instances that have occurred or are likely to have occurred, of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives. 22)There are no violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. 23)As part of your audit, you assisted with preparation of the financial statements and related notes and schedule of expenditures of federal awards. We acknowledge our responsibility as it relates to those nonaudit services, including that we assume all management responsibilities; oversee the services by designating an individual, preferably with senior management, who possesse suitable skill, knowledge, or experience; evaluate the adequacy and results of the services performed; and accept responsibility for the results of the services. We have reviewed, approved, and accepted responsibility for those financial statements and related notes and schedule of expenditures of federal awards. We also understand that as part of your audit, you prepared various adjusting journal entries, both on the fund and entity-wide level, and acknowledge that we have reviewed and approved those entries and accepted responsibility for them. 24)The Town has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 25)The Town has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 26)We have followed all applicable laws and regulations in adopting, approving, and amending budgets. 27)The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 28)The financial statements properly classify all funds and activities in accordance with GASB Statement No. 34. 29)All funds that meet thequantitative criteria in GASB Statement Nos. 34 and 37 for resen ation as P major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 30)Components of net position (net investment in capital assets; restricted; and unrestricted) and classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if applicable, approved. 31)Investments and land are properly valued. 32)Receivables recorded in the financial statements represent valid claims against debtors for transactions arising on or before the balance sheet date and have been reduced to their e$timated net realizable value. 33)Provisions for uncollectible receivables have been properly identified and recorded. 34)Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 35)We agree with the findings of specialists in evaluating the other postemployment benefit obligation and have adequately considered the qualifications of the specialists in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to the specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists. 36)We believe that the actuarial assumptions and methods used to measure pension and OPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances. 37)Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 38)Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 39)Deposits and investment securities are properly classified as to risk and are properly disclosed. 40)Capital assets, including infrastructure and intangible assets, are properly capitalized, repotted, and, if applicable, depreciated. 41)Capital assets have been evaluated for impairment as a result of significant and unexpected decline in service utility. Impairment loss and insurance recoveries have been properly recorded. 42)We have appropriately disclosed the Town's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available and have determined that net position is properly recognized under the policy. 43)We are following our established accounting policy regarding which resources (that is, r4stricted, committed, assigned, or unassigned) are considered to be spent first for expenditures for which more than one resource classification is available. That policy determines the fund balance classifications for financial reporting purposes. 44)We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentatioh of the RSI. 45)We have disclosed all tax abatement agreements, the total gross amount of taxes abated during the period, the specific taxes being abated, and whether any commitments other than to reduce taxes were made as part of any tax abatement agreement as required by GASB statement No. 77i 46)With respect to federal award: a) We are responsible for understanding and complying with and have complied with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ("Uniform Guidance"), including requirements relating to preparation of the schedule of expenditures of federal awards. b) We acknowledge our responsibility for presenting the schedule of expenditures of federal awards (SEFA) in accordance with the requirements of the Uniform Guidance, and wr believe the SEFA, including its form and content, is fairly presented in accordance with the Uniform Guidance. The methods of measurement or presentation of the SEFA have not changed from those used in the prior period and we have disclosed to you any significant assumpl♦ions and interpretations underlying the measurement or presentation of the SEFA. c) We have identified and disclosed to you all of our government programs and related activities subject to the Uniform Guidance. d) We are responsible for understanding and complying with, and have complied with, the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of our federal programs and have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on each major program. e) We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance requirements applicable to federal programs that provides reasonable assurance that we are managing our federal awards in compliance with laws, regulations, and the provisions of contracts and grant agreements that could have a material effect on our federal programs. We believe the internal control system is adequate and is functioning as intended. f) We have made available to you all contracts and grant agreements (including amendments, if any) and any other correspondence with federal agencies or pass-through entities relevant to federal programs and related activities. g) We have received no requests from a federal agency to audit one or more specific programs as a major program. h) We have complied with the direct and material compliance requirements (except for noncompliance disclosed to you), including when applicable, those set forth in the Compliance Supplement, relating to federal awards and have identified and disclosed to you all amounts questioned and all known noncompliance with the requirements of federal awards. i) We have disclosed any communications from grantors and pass-through entities co cerning possible noncompliance with the direct and material compliance requirements, including communications received from the end of the period covered by the compliance audit to the date of the auditor's report. j) We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relae to the objectives of the compliance audit, including findings received and corrective actions taken from the end of the period covered by the compliance audit to the date of the auditor's report. k) Amounts claimed or used for matching were determined in accordance with relevant guidelines in the Uniform Guidance. I) We have disclosed to you our interpretation of compliance requirements that may have,varying interpretations. m) We have made available to you all documentation related to compliance with the direct(material compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements. n) We have disclosed to you the nature of any subsequent events that provide additional evidence about conditions that existed at the end of the reporting period affecting noncompliance during the reporting period. o) There are no such known instances of noncompliance with direct and material compliance requirements that occurred subsequent to the period covered by the auditor's report. p) No changes have been made in internal control over compliance or other factors that might significantly affect internal control, including any corrective action we have taken regarding significant deficiencies or material weaknesses in internal control over compliance, subsequent to the date as of which compliance was audited. q) Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the financial statements have been prepared. r) The copies of federal program financial reports provided you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or pass-through entity, as applicable. s) We have charged costs to federal awards in accordance with applicable cost principles. t) We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by the Uniform and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions. u) We are responsible for and have accurately prepared the auditee section of the Data Collection Form as required by the Uniform Guidance. v) We are responsible for preparing and implementing a corrective action plan for each audit finding. Signature: ll Signature: �l Title: �o� /t irr Title /190/1)-ills I //- GPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS ESTABLISHED IN 1991 Appendix 3 About PKF O'Connor Davies, LLP 21 c,PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS IN 1001 FIRM OVERVIEW Founded in 1891,PKF O'Connor Davies has evolved from an Jiidustlt'_y Recognitioi accounting firm to a corps of high-caliber professionals that delivers to a global and growing client base a complete range of audit,tax and advisory services as well as insights and Ranked 29 of"2018's Top 100 Firms" expertise at the highest level.As our business has grown,our -Accounting Today,2018 commitment to active value creation has allowed 115 to connect our clients to sound business advice,key players and resources Ranked 7 of the"Top Firms in the across diverse industries. Mid-Atlantic" An Acknowledged Clnhtil i.,eadef -AccountingToday,2018 Not only are we one of the nation's most rapidly growing accounting Ranked 11 of"New Jersey's Top and advisory firms,we are also the lead North American firm In the growing PKF global network of independent accounting and advisory Accounting Firms" firms_This enables us to provide clients with preferred access to top- -NJBIZ,2017 tier experts and firms in over 400 locations,in 150 countries around the world.It also establishes us as the primary referral point for "Tax Advice Award" international businesses with needs in North America,an advantage for -Family Wealth Report Awards,2018 our domestic clients seeking connections outside the U.S. Active Partner Involvement "Best Multi Family Office -Client Dedicated Lngagemerit Tears Service-Over$2 Billion" -Private Asset Management Awards,2018 We have built strong relationships with our clients by being proactive,thorough and efficient.Firm partners are involved "Best Private Client Audit Firm" in the day-to-day management of engagements,ensuring Private Asset Management Awards,2017 a high degree of client service and cost effectiveness.Multi- disciplinary teams ensure solutions are customized to address specific needs and integrated for greater efficiency. "Best Reporting Solution Award" -Private Asset Management Awards,2016 A Higher Standard:Beyond Passive Value Calculation to Active Value Creation "Best Places to Work in New Jersey" Our focus on value has driven our growth,propelling PKF O'Connor -NJBIZ,2018 Davies to the Top 29 on AccountingTodays 2018'Top 100 Firms"list and gaining us acclaim as one of the country's fastest-growing firms. Ranked 22 of the 50"Best Accounting With unmatched client focus,we unlock genuine value hidden at key Employers to Work for in connection points in every engagement within regional,national North America" and international arenas.Through these connections,our team of Vault,2018 specialists continually drives efficiencies,uncovers opportunities and manages risk-delivering value where others can't. KNOW GREATER VALUETM 22 Agility, Responsiveness and Recognitiosi Since our founding,PKF O'Connor Davies has maintained Its commitment to gaining a deep understanding of each client's operations and financial history in order to help meet their every challenge and objective.We fulfill this mission by providing resources that match those of larger firms in scope-but with the agility only a mid-sized firm such as ours can demonstrate...and yet,we still rank among them.Our services include: Accounting and Advisory Services Assurance S' ices Bankruptcy&Restructuring •Accounting Outsourcing Management Advisory Services Agreed-Upon Procedures(AUPs) Risk Advisory Services Audits,Reviews and Compilations Specialty Industry Advisory Services Employee Benefit Plans -Employee Benefit Plan Services Government Entity Audits&Compliance -Entrepreneurial Business Advisory Solutions International Financial Reporting -Government&Public Sector Advisory Services Standards(IFRS) -Healthcare Advisory Services IT Audit&Cybersecurity Reviews -Hospitality Advisory Services Public Company Accounting Oversight Transaction&Financial Advisory Services Board(PCAOB) Wealth Services Tax Compliance and Family Office.Services Piiunning Services r Employee Benefit Planning&Tax Compliance ■ Accounting&Reporting International Tax Services Advisory IRS Representation&Tax Controversies Charitable Giving Personal Financial Planning • Investment Monitoring&Oversight Private Foundation Services • Lifestyle Support +- State and Local Tax(SALT) • Personal Financial Management Tax Compliance&Reporting •Tax Planning Tax-Exempt Organizations Wealth Planning • Tax Research and Strategic Planning - Trust and Estate Planning We offer an exceptional breadth of advisory services across diverse industries and sectors. PKf OrCONNOR DAVIES ACCOUNTANTS AND ADVISORS PKF O'Connor Davies.LLP Is a member firm of the PKF International limited network d legally independent firms and does not accept arty responsibility a liability for the actlons or auctions on the part of any other individual member firm or firms. Bethesda,MD Cranford,NJ I Hat ison,NY Livmgsto-i.NJ New Yoi k,NY Newburgh,NY Stamford,CT Wethersfield,Cl Woodcliff Lake,NJ www.pkfod.com 23 ■ PKF ' O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS .l Deferred Compensation Plan for Employees of the Town of Mamaroneck Financial Statements December 31 , 2017 and 2016 1 1 l 1 J J J J J J KNOW GREATER VALUE' J I PKF aCONNOR DAVIES ACCOUNTANTS AND ADVISORS Independent Auditors' Report The Members of the Board of the Deferred Compensation Plan for Employees of the Town of Mamaroneck Report on the Financial Statements We have audited the accompanying financial statements of Deferred Compensation Plan for Employees of the Town of Mamaroneck (the "Plan"), which comprise the statements of net assets available for benefits as of December 31, 2017 and 2016, the related statements of changes in net assets available for benefits for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Plan's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. PKF O'CONNOR DAVIES. LLP 500 Mamaroneck Avenue, Harrison,NY 10528 I Tel: 914.381.8900 I Fax: 914.381.8910 I www.pkfod.com PKF O'Connor Davies. LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Deferred Compensation Plan for Employees of the Town of Mamaroneck as of December 31, 2017 and 2016, and the changes in its net assets available for benefits for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Other Matter— Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis on pages 3 through 5 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audits of the basic financial statements. However, we did not audit the information and express no opinion on it. PAF" lr , , LLP May 29, 2018 Deferred Compensation Plan for Employees of the Town of Mamaroneck Management's Discussion and Analysis December 31, 2017 Introduction As management of the Deferred Compensation Plan for the Employees of the Town of Mamaroneck (the "Plan"), we offer readers of the Plan's financial statements this narrative overview and analysis of the financial activities of the Plan as of and for the years ended December 31, 2017 and 2016. The Plan covers all Town employees and elected or appointed officials who elect to participate in the Plan. Under the Plan, participants may defer a portion of their salary until future years. The Plan is governed by section 457(b) of the Internal Revenue Code. Financial Highlights The net assets available for benefits totaled $11,285,722 at December 31, 2017 compared to $10,002,918 at December 31, 2016. These funds are available for distribution to Plan participants in accordance with Plan provisions. The total number of Plan participants at December 31, 2017 and 2016 was 132 and 138. The investments held by the Plan are in two major asset classes; a collective investment trust and pooled separate accounts. The collective investment trust represents approximately 18% and 21% of the Plan's net assets available for benefits as of December 31, 2017 and 2016. Total investments, at fair value, were $11,142,337 and $9,858,752 at December 31, 2017 and 2016. In addition to the investments held by the Plan, the Plan also has notes receivable from participants which represent the unpaid principal balance plus any accrued unpaid interest on loans to participants against their individual account balance. Notes receivable from participants at December 31, 2017 and 2016 were $143,385 and $144,166. Overview of the Financial Statements This narrative overview and analysis is intended to serve as an introduction to the Plan's basic financial statements, which comprise the following three components: (1) Statements of Net Assets Available for Benefits, (2) Statements of Changes in Net Assets Available for Benefits, and (3) Notes to Financial Statements. Summary Financial Statements The summary financial statements for the years ended December 31, 2017 and 2016 have been prepared under the accrual method of accounting. These summary financial statements reflect the resources available to pay benefits to participants, as well as changes in those resources during the year. 3 Deferred Compensation Plan for Employees of the Town of Mamaroneck Management's Discussion and Analysis December 31, 2017 Summary Financial Statements (continued) Net Assets Available for Benefits 2017 2016 Assets $ 11,285,722 $ 10,002,918 Liabilities - - Net Assets Available for Benefits $ 11,285,722 $ 10,002,918 Changes in Net Assets Available for Benefits 2017 2016 ADDITIONS (DEDUCTIONS) Contributions $ 586,852 $ 589,448 Investment income 1,398,902 578,053 Interest income on notes receivable from participants 6,084 6,071 Deductions (709,034) (360,120) Net Increase 1,282,804 813,452 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 10,002,918 9,189,466 End of Year $ 11,285,722 $ 10,002,918 Notes to Financial Statements The financial statement notes provide additional information that is essential to a full understanding of the information provided in the statements as follows: Note 1 - Provides a general description of the Plan, as well as descriptions of contributions, benefits, notes receivable from participants, participant accounts, vesting, and expenses. Note 2 - Provides a summary of the Plan's significant accounting policies. Note 3 - Provides a description of the Plan's investments. Note 4 - Describes the Plan's tax status. Note 5 - Describes the Plan's related party transactions. Note 6 - Describes the Plan's termination rights. Note 7 - Describes various risks and uncertainties of the Plan's investments. 4 Deferred Compensation Plan for Employees of the Town of Mamaroneck Management's Discussion and Analysis December 31, 2017 Financial Analysis of the Deferred Compensation Plan The following financial analysis summarizes the financial results of the Plan. Net increases or decreases in Plan assets are accumulated through voluntary payroll deferrals, rollovers from other qualified retirement plans, earnings or losses on investments, interest and dividends, interest income on notes receivable from participants, benefits paid to participants, deemed distributions, and administrative expenses. Key components of the net increase (decrease) in Plan Assets for the years ended December 31 are as follows: 2017 2016 Voluntary payroll deferrals $ 586,852 $ 552,355 Rollover contributions - 37,093 Net appreciation in fair value of investments 1,388,254 569,300 Interest and dividends from investments 10,648 8,753 Interest income on notes receivable from participants 6,084 6,071 Benefits paid to participants (698,035) (359,520) Deemed distributions (10,499) - Administrative expenses (500) (600) Net Increase in Plan Assets $ 1,282,804 $ 813,452 Other Highlights As part of a semi-annual review of the Plan's investment portfolio, the Deferred Compensation Plan Board will make changes to the investment funds offered to Plan participants. Other than changes in the fair value of Plan assets as may be impacted by the stock and bond markets, no other matters are known by management to have a significant impact on the operations or financial position of the Plan. Requests for Information This financial report is designed to provide a general overview of the Deferred Compensation Plan for Employees of the Town of Mamaroneck. Questions concerning any information provided in this report or requests for additional information should be addressed to the Plan Administrator, Town of Mamaroneck, 740 W. Boston Post Road, Mamaroneck, NY 10543. 5 Deferred Compensation Plan for Employees of the Town of Mamaroneck Statements of Net Assets Available for Benefits December 31, 2017 2016 ASSETS Investments, at fair value $ 11,142,337 $ 9,858,752 Notes receivable from participants 143,385 144,166 Total Assets 11,285,722 10,002,918 LIABILITIES - - Net Assets Available for Benefits $ 11,285,722 $ 10,002,918 See notes to financial statements 6 Deferred Compensation Plan for Employees of the Town of Mamaroneck Statements of Changes in Net Assets Available for Benefits Year Ended December 31, 2017 2016 ADDITIONS Contributions Participants $ 586,852 $ 552,355 Rollover - 37,093 Total Contributions 586,852 589,448 Investment Income Net appreciation in fair value of investments 1,388,254 569,300 Interest income 10,648 8,753 Total Investment Income 1,398,902 578,053 Interest income on notes receivable from participants 6,084 6,071 Total Additions 1,991,838 1,173,572 DEDUCTIONS Benefits paid to participants 698,035 359,520 Deemed distributions 10,499 - Administrative expenses 500 600 Total Deductions 709,034 360,120 Net Increase 1,282,804 813,452 NET ASSETS AVAILABLE FOR BENEFITS Beginning of year 10,002,918 9,189,466 End of year $ 11,285,722 $ 10,002,918 See notes to financial statements 7 Deferred Compensation Plan for Employees of the Town of Mamaroneck Notes to Financial Statements December 31, 2017 and 2016 1. Description of the Plan The Town of Mamaroneck (the "Town") established the Deferred Compensation Plan for Employees of the Town of Mamaroneck (the "Plan") under Internal Revenue Code ("IRC") Section 457(b). The following description of the Plan is provided for general information purposes only. Participants should refer to the plan agreement for a more complete description of the Plan's provisions. General The Plan is an eligible deferred compensation plan covering all Town employees and elected or appointed officials who elect to participate. Contributions Participants can elect to defer a portion of their current salary until future years in amounts allowable by the IRC. The plan administrator allows participants to direct the investment of their contributions among the various investment options offered by the Plan. The Plan also provides certain catch-up provisions for participants age 50 or over, and for participants within three years of their normal retirement age, as defined by the Plan. Amounts contributed by employees are deferred for federal and state income tax purposes until benefits are paid to the employees. The Town does not make any contributions to the Plan. Benefits Employees are fully vested in their account balance at all times. A participant whose service ends for any reason may elect to receive the balance of their account in either a lump-sum amount or in annual installments over a prescribed period. In the event of an unforeseen emergency, as defined in the IRC, a participant may make withdrawals. If a participant dies before his/her benefit payments begin, the balance credited to their account shall be paid to their beneficiary in the form elected. The benefit payment shall be calculated on the basis of the most recent valuation dated before the date of payment. Notes Receivable from Participants Participants may borrow from their accounts up to a maximum amount equal to the lesser of $50,000 or 50% of their vested account balance, whichever is less. The loans are secured by the balance in the participant's account and bear interest at local prevailing rates as determined quarterly by the plan administrator. Principal and interest is paid ratably through monthly payroll deductions. The loan must be repaid within a period not to exceed 5 years from the date the participant receives the loan, unless the loan is for the purchase of the participant's principal residence, in which case the loan must be repaid within 20 years. 8 Deferred Compensation Plan for Employees of the Town of Mamaroneck Notes to Financial Statements December 31, 2017 and 2016 1. Description of the Plan (continued) Participant Accounts The entire income of the Plan, including realized and unrealized gains and losses, net of any expenses, has been credited to the participants' accounts in accordance with the Plan's allocation procedures. Vesting A participant is 100% vested in their accounts at all times. Expenses Certain expenses of maintaining the Plan are paid by the Town and are excluded from these financial statements. Administrative expenses consist of expenses associated with administering loans to participants of the Plan. Investment expenses charged to the Plan for investments are charged directly against the assets of the accounts and are not separately reflected. Consequently, investment expenses are reflected as a reduction of investment return for such investments. 2. Summary of Significant Accounting Policies Basis of Accounting The financial statements of the Plan have been prepared on the accrual basis of accounting. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the plan sponsor to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of changes in net assets during the reporting period. Actual results could differ from those estimates. Investment Valuation and Income Recognition The Plan's investments are stated at fair value. Separate accounts are reported at the value reported to the Plan by the insurance company, which represents the approximate fair value of the underlying investments comprising the accounts. The collective investment trust is valued at the net asset value ("NAV") of units held by the Plan. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. The practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Purchases and sales are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Net appreciation (depreciation) includes the Plan's gains and losses on investments bought and sold as well as held during the year. 9 Deferred Compensation Plan for Employees of the Town of Mamaroneck Notes to Financial Statements December 31, 2017 and 2016 3. Investments The following tables set forth, by level within the fair value hierarchy, the Plan's investments at fair value as of December 31: 2017 Other Investments Measured Level 1 at NAV* Total Separate accounts $ 9,139,374 $ - $ 9,139,374 Collective investment trust - 2,002,963 2,002,963 $ 9,139,374 $ 2,002,963 $ 11,142,337 2016 Other Investments Measured Level 1 at NAV * Total Separate accounts $ 7,750,396 $ - $ 7,750,396 Collective investment trust - 2,108,356 2,108,356 $ 7,750,396 $ 2,108,356 $ 9,858,752 (*) As discussed in Note 2, investments that are measured using the practical expedient are not classified within the fair value hierarchy. The following investments represent 5% or more of the net assets available for benefits at December 31: 2017 2016 Voya Stable Value Fund 75 $ 2,002,963 $ 2,108,356 Voya T. Rowe Price Growth Equity Portfolio 1,221,244 912,397 Voya Invesco Equity & Income Portfolio 1,165,917 986,025 Voya Intermediate Bond Port S 727,651 783,706 Fidelity VIP Growth Port I 699,706 541,322 Voya Oppenheimer Global P 664,892 Voya Strategic Allocation Conservative Port I 617,892 * * -Amount was less than 5% of the Plan's net assets available for benefits. 11 Deferred Compensation Plan for Employees of the Town of Mamaroneck Notes to Financial Statements December 31, 2017 and 2016 3. Investments (continued) The Voya Stable Value Fund 75 CIT (the "Fund") is a group collective investment trust that holds a diversified portfolio of stable value products. Wilmington Trust is the trustee of the Fund and the Fund is subadvised by Galliard Capital Management, Inc. Wilmington Trust and Galliard Capital Management are not affiliated with Voya. The Fund represents approximately 18% and 21% of the Plan's net assets available for benefits as of December 31, 2017 and 2016. The average yields of the Fund were 1.19% and 0.42% for the years ended December 31, 2017 and 2016. The Plan's separate accounts (including investments bought, sold as well as held during the year) appreciated (depreciated) in value by $1,388,254 and $569,300 for the years ended December 31, 2017 and 2016. 4. Tax Status The Plan is an eligible deferred compensation plan within the meaning of Section 457(b) of the IRC. Amounts deferred thereunder are not subject to tax under present income tax law until paid or otherwise made available to Plan participants or beneficiaries. 5. Related Party Transactions Certain Plan investments are managed by Voya. Voya is the custodian as defined by the Plan and, therefore, these transactions qualify as related party transactions. Direct fees paid to Voya by the Plan amounted to $500 and $600 for the years ended December 31, 2017 and 2016. 6. Plan Termination Although it has not expressed any intent to do so, the Town has the right under the Plan to discontinue deferrals and to terminate the Plan. Upon termination of the Plan, all amounts deferred shall be payable as provided in the plan document. 7. Risks and Uncertainties The Plan investments are subject to various risks. Among these risks are custodial credit risk, credit risk, concentration of credit risk, and interest rate risk. Custodial credit risk, as it relates to investments, is the risk that in the event of the failure of the custodian, the Plan will not be able to recover the value of the investments or collateral securities that are in the possession of the third party. Investments in the collective investment trust and separate accounts are not exposed to custodial credit risk as they are held in segregated trust accounts in the name of the Plan with the custodian. 12 Deferred Compensation Plan for Employees of the Town of Mamaroneck Notes to Financial Statements December 31, 2017 and 2016 7. Risks and Uncertainties (continued) Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The credit risk of the custodian, Voya, is evaluated by nationally recognized statistical rating agencies. The financial ratings from these agencies are as follows: Moody's Investor Service (A2 as of March 2018), A.M. Best (A as of March 2018), Standard and Poor's (A as of March 2018), and Fitch (A as of March 2018). Concentration of credit risk is the risk of loss attributable to the magnitude of an investment with a single issuer. All of the Plan's investments are managed by Voya. The interest rate risk is the risk that changes in interest rates could adversely affect the fair value of an investment. Since all investments are participant directed, all risks exist at the participant level. Each individual within the Plan has the ability to liquidate their positions on demand and have responsibility for managing their exposure to fair value loss. As of December 31, 2017, none of the Plan's investments had a maturity date, which would increase an investment's sensitivity to its fair value based on interest rate changes. ***** 13 no PKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS PKF O'Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms. Town of Mamaroneck, New York Financial Statements and Supplementary Information Year Ended December 31 , 2017 Town of Mamaroneck, New York Table of Contents Page No. Independent Auditors' Report 1 Management's Discussion and Analysis 4 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 14 Statement of Activities 15 Fund Financial Statements Balance Sheet - Governmental Funds 17 Reconciliation of Governmental Funds Balance Sheet to the Government- Wide Statement of Net Position 19 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Town Outside Villages, Highway and Special Districts Funds 23 Fiduciary Fund 26 Statement of Assets and Liabilities 27 Notes to the Financial Statements Required Supplementary Information Service Awards Program Schedule of Changes in the Town's Total Pension Liability - Last Ten Fiscal Years 64 Other Post Employment Benefits 65 Schedule of Funding Progress - Last Three Fiscal Years New York State and Local Employees' Retirement System Schedule of the Town's Proportionate Share of the Net Pension Liability 66 Schedule of Contributions 67 New York State and Local Police and Fire Retirement System Schedule of the Town's Proportionate Share of the Net Pension Liability 68 Schedule of Contributions 69 Combining and Individual Fund Financial Statements and Schedules Major Governmental Funds General Fund Comparative Balance Sheet 70 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 71 Schedule of Revenues and Other Financing Sources Compared to Budget 73 Schedule of Expenditures and Other Financing Uses Compared to Budget 75 Town Outside Villages Fund Comparative Balance Sheet 78 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 79 Town of Mamaroneck, New York Table of Contents (Concluded) Page No. Schedule of Revenues and Other Financing Sources Compared to Budget 81 Schedule of Expenditures and Other Financing Uses Compared to Budget 83 Highway Fund Comparative Balance Sheet 85 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 86 Special Districts Fund Combining Balance Sheet - Sub-Funds 88 Combining Schedule of Revenues, Expenditures and Change in Fund Balances - Sub-Funds 90 Section 8 Housing Assistance Fund Comparative Balance Sheet 92 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 93 Capital Projects Fund Comparative Balance Sheet 94 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 95 Project-Length Schedule 96 Non-Major Governmental Funds Combining Balance Sheet 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 100 Tri-Municipal Cable T.V. Fund Comparative Balance Sheet 102 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 103 Special Purpose Fund Comparative Balance Sheet 105 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance 106 Debt Service Fund Comparative Balance Sheet 107 Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 108 Federal Programs Report on Internal Control Over Financing Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 110 Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance 112 Schedule of Expenditures of Federal Awards 114 Notes to Schedule of Expenditures of Federal Awards 115 Summary Schedule of Prior Audit Findings 116 Schedule of Findings and Questioned Costs 117 no PKF aCONNOR DAVIES ACCOUNTANTS AND ADVISORS Independent Auditors' Report The Honorable Supervisor and Town Board of the Town of Mamaroneck, New York Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the Town of Mamaroneck, New York ("Town") as of and for the year ended December 31, 2017, and the related notes to the financial statements which collectively comprise the Town's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Town's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the Town, as of December 31, 2017, and the respective changes in financial position and the respective budgetary comparison for the General, Town Outside Villages, Highway and Special Districts funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. PKF O'CONNOR DAVIES,LLP 500 Mamaroneck Avenue, Harrison, NY 10528 I Tel:914.381.8900 I Fax:914.381.8910 I www.pkfod.com PKF O'Connor Davies,LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. Emphasis of Matter We draw attention to Note 2C in the notes to financial statements which disclose the effects of the Town's adoption of the provisions of Governmental Accounting Standards Board Statement No. 73 "Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68". Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis and the schedules included under Required Supplementary Information in the accompanying table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit for the year ended December 31, 2017 was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, for the year ended December 31, 2017 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended December 31, 2017 and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole for the year ended December 31, 2017. We also previously audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the Town as of and for the year ended December 31, 2016 (not presented herein), and have issued our report thereon dated May 30, 2017, which contained unmodified opinions on the respective financial statements of the governmental activities, the discretely presented component unit, each major fund and the aggregate remaining fund information. The combining and individual fund financial statements and schedules for the year ended December 31, 2016 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the 2016 financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the 2016 basic financial statements and certain additional procedures, 2 including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended December 31, 2016. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 18, 2018 on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control over financial reporting and compliance. PIF " LLP PKF O'Connor Davies, LLP Harrison, New York May 18, 2018 3 (This page intentionally left blank) Town of Mamaroneck, New York Management's Discussion and Analysis (MD&A) December 31, 2017 Introduction As management of the Town of Mamaroneck, New York ("Town"), we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended December 31, 2017. It should be read in conjunction with the basic financial statements, which immediately follow this section, to enhance understanding of the Town's financial performance. Financial Highlights Key financial highlights for fiscal year 2017 are as follows: • As of the close of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $25,318,946, a decrease of $2,772,425 from the prior year. The decrease in fund balance is primarily due to a reduction of restricted fund balance in the Town's Capital Projects Fund. • At the end of the current fiscal year, the total fund balance for the Town-wide General Fund was $9,359,856 or 76% of total General Fund expenditures and other financing uses for 2017. The total Town-wide General Fund fund balance consists of $339,732 (Nonspendable), $964,645 (Assigned), $125,000 (Restricted) and $7,930,479 (Unassigned). Total fund balance for the Town Outside Villages Fund was $4,611,799 or 38% of total fund expenditures and other financing uses for 2017. Total fund balance for Highway Fund and Special Districts Funds are $1,049,148 and $5,188,728, respectively or 18% and 60%, respectively, of total fund expenditures and other financing uses for 2017. The Town adopted a formal fund balance policy and surplus recovery plan on March 20, 2013 which prescribes that a minimum of 15% to 30% of the subsequent year's budgeted appropriations be retained. The percentages at December 31, 2017, in most cases, are within the range of or exceed the surplus levels that are consistent with Town's policy. • During the year ended December 31, 2017; the Town retired $9,115,845 of long term general obligation debt and issued $7,040,000 of new long term general obligation debt in the form of advance refunding serial bonds. Overall, long-term debt obligations of the Town decreased by $2,075,845 to $30,785,000 for the period ending December 31, 2017. ❖ Commencing with the year ended December 31, 2015, the Town implemented the provisions of the Governmental Accounting Standards Board ("GASB") Statement No. 68, "Accounting and Financial Reporting for Pensions". This pronouncement established new accounting and financial reporting requirements associated with the Town's participation in the cost sharing multiple employer pension plans administered by the New York State and Local Employees' Retirement System ("ERS") and the New York State and Local Police and Fire Retirement System ("PFRS"). Under the new standards, cost-sharing employers are required to report in their government-wide financial 4 statements a net pension liability (asset), pension expense and pension-related deferred inflows and outflows of resources based on their proportionate share of the collective amounts for all of the municipalities and school districts in the plan. At December 31, 2017 the Town reported in its Statement of Net Position a liability of $5,318,690 for its proportionate share of the ERS and PFRS pension liabilities. More detailed information about the Town's pension plan reporting in accordance with the provisions of GASB Statement No. 68, including amounts reported as pension expense and deferred inflows/outflows of resources, is presented in the notes to the financial statements. ❖ On the government-wide financial statements, the assets and deferred outflows of resources of the primary government, which is reported separately from the component unit (Mamaroneck Housing Authority) for which the Town is financially accountable, exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $9,510,305. Of this amount, the unrestricted net position, which is available to meet the ongoing obligations of the Town, is reported as a deficit in the amount of $17,311,086 due primarily from the required accrual in accordance with the provisions of GASB Statement No. 45 of the Town's annual Other Post-Employment Benefits Obligations Payable (OPEB) of$30,640,000. Overview of Financial Statements This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements. The basic financial statements include three components: 1) government- wide financial statements, 2) fund financial statements and 3) notes to financial statements. This report also includes other supplementary information as listed in the table of contents. Government-Wide Financial Statements The government-wide financial statements are designed to provide the readers with a broad overview of the Town's finances in a manner similar to a private-sector business. The Town of Mamaroneck Housing Authority is a legally separate component unit of the primary government ("Town") for which the Town is financially accountable. The reader may refer to the component unit's separately issued financial statements for additional information. The statement of net position presents information on all of the Town's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator as to whether the financial position of the Town is improving or deteriorating. The statement of activities presents information reflecting how the Town's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (for example, uncollected taxes and earned but unused vacation leave). The government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues ("governmental activities"). The governmental activities of the Town include general government support, public safety, health, 5 transportation, economic opportunity and development, culture and recreation, home and community services and interest. The government-wide financial statements can be found immediately following this discussion and analysis. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related and legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and fiduciary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains fourteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Town Outside Villages Fund, Highway Fund; Special Districts Fund (Fire, Street Lighting, Ambulance, Refuse and Garbage, Sewer and Water Districts), Section 8 Housing Assistance Fund and Capital Projects Fund, which are considered to be major funds. Data for the other three non-major governmental funds (Tri-Municipal Cable T.V., Special Purpose and Debt Service Funds) are combined into a single aggregated presentation. Individual fund data for each of these non- major governmental funds is provided in the form of combining statements elsewhere in this report. The Town adopts an annual appropriation budget for its General Fund, Town Outside Villages Fund, Highway Fund, and Special Districts Fund, which are major funds. A budgetary comparison statement has been provided for these funds within the basic financial statements to demonstrate compliance with the respective budgets. Annual budgets are also adopted for the Tri-Municipal Cable T.V. Fund and the Debt Service Fund which are non-major funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Town's programs. The Town previously maintained two fiduciary funds; an Agency Fund and a Pension Trust Fund. Resources are held in the Agency Fund by the Town purely in a custodial capacity. The activity 6 in the Agency Fund is limited to the receipt, temporary investment, and remittance of resources to the appropriate individuals, organizations or governments. The Pension Trust Fund however is no longer used since the Town, for the year ended in December 31, 2016, implemented the requirements of GASB Statement No. 73, "Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement No. 68". Refer to Note 2, Section C in the Financial Statements for further details on the change in accounting and financial reporting for the activity of the Service Awards Pension Program for volunteer firefighters. The financial statements for the governmental and fiduciary funds can be found in the basic financial statements section of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements are located following the basic financial statements section of this report. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of the Town's financial position. In the case of the Town, assets and deferred outflows of resources exceeded liabilities by $9,510,305 at the close of the current fiscal year. Net Position December 31, 2017 2016 Current Assets $ 100,723,263 $ 85,143,965 Capital Assets, net 47,725,754 43,822,905 Total Assets 148,449,017 128,966,870 Deferred Outflows of Resources 6,156,185 9,746,628 Current Liabilities 57,310,951 56,014,577 Long-term Liabilities 69,054,829 68,309,208 Total Liabilities 126,365,780 124,323,785 Deferred Inflows of Resources 18,729,117 1,761,893 NET POSITION Net investment in capital assets 20,552,890 17,142,172 Restricted 6,268,501 7,587,153 Unrestricted (17,311,086) (12,101,505) Total Net Position $ 9,510,305 $ 12,627,820 7 Net Position Distribution December 31, 2017 Net Investment in Capital Unrestricted Assets Net Assets 216% - - — -182% Restricted Net Assets 66% Net investment in capital assets, less any outstanding debt used to acquire those assets of $20,552,890, accounts for 216% of the total net position. The Town uses these assets to provide services to citizens. Consequently, these assets cannot be used for future spending. Although the Town's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since capital assets cannot be used to liquidate these liabilities. Approximately 66% of the Town's net position is restricted for various purposes (future capital projects, debt service, special revenue funds and trusts). The restricted net position of $6,268,501 represents resources that are subject to external restrictions on how they may be used. The restrictions are as follows: December 31, 2017 2016 Future Capital Projects $ 125,000 $ 125,000 Debt Service 871,666 933,413 Pension Benefits - 1,051,225 Special Districts: Water 2,455,291 2,415,482 Sewer 259,224 232,770 Refuse and Garbage 109,153 99,891 Ambulance - - Street Lighting 11,178 42,256 Section 8 Housing Assistance 472,180 712,378 Tri-Municipal Cable TV 1,714,438 1,738,396 Trusts 250,371 236,342 Total $ 6,268,501 $ 7,587,153 The remaining balance of net position, representing unrestricted net assets of ($17,311,086) is reported as a deficit as a result of having long-term commitments including compensated absences and other post employment benefit obligations that are greater than currently available resources. Payments of these liabilities will be budgeted in the year that actual 8 payment will be made. At the end of the current fiscal year, the Town is able to report positive net position balances for the government as a whole. Change in Net Position Year Ended December 31, Primary Government 2017 2016 REVENUES Program Revenues Charges for Services $ 8,473,399 $ 8,572,342 Operating Grants and Contributions 7,481,928 6,939,865 Capital Grants and Contributions 349,551 341,127 General Revenues Real Property Taxes 25,233,805 23,708,098 Other Tax Items 1,078,925 1,000,533 Non-Property Taxes 1,827,391 1,748,807 Unrestricted Use of Money and Property 36,289 27,642 Sale of property and compensation for loss 1,348,579 158,808 Insurance Recoveries 145,852 2,047 Unrestricted State Aid 1,524,938 1,878,775 Miscellaneous 3,899 29,790 Total Revenues 47,504,556 44,407,834 EXPENSES Program Expenses General Government Support 8,558,953 7,886,168 Public Safety 15,075,843 14,474,164 Health 2,341,289 2,240,164 Transportation 6,094,052 5,921,176 Economic Opportunity and Development 7,181,791 6,455,362 Culture and Recreation 5,587,787 5,290,919 Home and Community Services 3,646,045 3,546,456 Interest 766,612 712,909 Total Expenses 49,252,372 46,527,318 Change in Net Position (1,747,816) (2,119,484) NET POSITION Beginning 12,627,820 13,731,772 Cumulative Effect of Change in Accounting Principle (1,369,699) 1,015,532 Beginning, as restated 11,258,121 14,747,304 Ending $ 9,510,305 $ 12,627,820 9 Sources of Revenue for Fiscal Year 2017 Governmental Activities Other Tax Items & Misc Unrestricted 5% State Aid Non-Property 3% Taxes 4% Program Revenues 34% Real Property Taxes 54% Expenses for Fiscal Year 2017 Governmental Activities Interest 1% 5a Recreation Health Culture and Public31Safety% -\ 11% General Home and Government Community Support Services 18% 7% Economic Opportunity and Transportation Development 13% 14% Governmental activities decreased the Town's net position by $1,747,816 for the fiscal year ended December 31, 2017. Total revenues for the year ended December 31, 2017, from governmental activities totaled $47,504,556. Real Property Taxes of $25,233,805 represent the largest revenue source (54%). Governmental activities expenses of the Town totaled $49,252,372. The largest components of these expenses are in the areas of Public Safety (31%), General Government Support (18%), Economic Opportunity & Development (14%), Transportation (13%), Culture and Recreation (11%) and Home and Community Services (7%). 10 Financial Analysis of the Town's Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Fund Balance Reporting Nonspendable — consists of assets that are inherently nonspendable in the current period either because of their form or because they must be maintained intact, including prepaid items, inventories, long-term portions of loans receivable, financial assets held for resale and principal of endowments. Restricted — consists of amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments; or through constitutional provisions or enabling legislation. Committed — consists of amounts that are subject to a purpose constraint imposed by a formal action of the government's highest level of decision-making authority before the end of the fiscal year, and that require the same level of formal action to remove the constraint. Assigned — consists of amounts that are subject to a purpose constraint that represents an intended use established by the government's highest level of decision-making authority, or by their designated body or official. The purpose of the assignment must be narrower than the purpose of the General Fund, and in funds other than the General Fund, assigned fund balance represents the residual amount of fund balance. Unassigned — represents the residual classification for the government's General Fund, and could report a surplus or deficit. In funds other than the General Fund, the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. These changes were made to reflect spending constraints on resources, rather than availability for appropriations and to bring greater clarity and consistency to fund balance reporting. This pronouncement should result in an improvement in the usefulness of fund balance information. Governmental Funds The focus of the Town's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $25,318,946, a decrease of $2,772,425 compared to last years ending balance of $28,091,371. The nonspendable fund balance component of $1,918,479 consists of amounts representing prepaid expenditures. Prepaid expenditures have been established primarily to account for a portion of the New York state retirement and general liability insurance payments made in advance. Fund balance of $3,946,321 is restricted for special purpose trusts, special revenue funds, capital projects and debt service. The assigned fund balance classification aggregates $11,523,667, consisting primarily of amounts designated to balance the fiscal 2018 budget ($936,725 in the General Fund, $350,000 in the Town Outside Villages Fund, $65,000 in the Highway Fund, $106,000 in the Special Districts Funds, $234,170 in the Debt Service Fund and $350,000 in the Tri-Municipal Cable T.V. Fund) and amounts available 11 to be used at the Town's discretion in funds other than the General Fund ($3,599,066 in the Town Outside Villages Fund, $471,476 in the Highway Fund, $3,499,086 in the Special Districts Funds, $472,180 in the Section 8 Housing Assistance Fund and $1,364,438 in the Non-Major Governmental Tri-Municipal Cable T.V. Fund). The remaining fund balance of $7,930,479 is unassigned and represents the remaining positive fund balance in the General Fund. The General Fund is the primary operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the General Fund was $7,930,479, representing 85% of the total General Fund balance of$9,359,856. This is an increase over the prior year, when the total fund balance was $8,292,038. All categories of actual revenues other than Fines and Forfeitures and Federal aid have exceeded 2017 budget estimates. Real Property Tax, Other Tax Items and Sale of Property revenues generated the largest positive budget variances contributing to a highly favorable increase in fund balance. Two useful measures of liquidity are the percentage of unassigned fund balance to total expenditures and total fund balance to total expenditures. As a result of the increases in revenues, at the end of the current fiscal year, the General Fund showed a 64% unassigned fund balance as compared to total expenditures and other financing uses. Actual expenditures and other financing uses were approximately $400,000 greater than the amounts estimated to be expended in the 2017 final operating budget. This negative expenditure variance is primarily due to the unanticipated credit card processing fees incurred for the allowable prepayment collection of 2018 Town property taxes during the last four business days of 2017 as per executive order from the New York State Governor's office. Conservative revenue and expenditure budgeting along with prudent financial management has resulted in a continued increase in total fund balance. The Town Outside Villages Fund's total fund balance at the end of the fiscal year was $4,611,799, an increase of $447,870 from the previous fiscal year. This primarily resulted from licenses and permit fees and sales tax distribution revenue being approximately $430,000 greater than the conservatively estimated final budget. The Highway Fund's total fund balance at the end of the current fiscal year was $1,049,148, a decrease of $194,629 from the previous year. Approximately $190,000 represents funds transferred to capital infrastructure projects reducing the need to issue additional debt. The Special Districts Fund's total fund balance at the end of the current fiscal year was $5,188,728, an increase of $262,057 from the previous year. The increase is primarily the result of a Cumulative Effect of Change in Accounting Principle in the Fire District resulting in an increase over the prior year to Restricted Fund Balance in the amount of $81,470 restricted for the Length of Service Awards Program (LOSAP) pensions, a net increase in Water District fund balance of approximately $310,000 and in increase in Sewer District revenues of approximately $60,000 compared to 2016. Positive expenditure budget variances in the Ambulance, Sewer, Garbage and Water Districts attributable to conservative expenditure budget estimates also contributed to an increase in fund balance at fiscal year ended 2017. The Capital Projects Fund reflects a fund balance of$1,800,760 at the end of the current fiscal year, a decrease of $4,043,667 from the previous year. The Town plans on issuing new long term debt in the form of serial bonds to fund all currently authorized capital projects during the 2018 fiscal year. 12 Capital Assets The Town's investment in capital assets for its governmental activities as of December 31, 2017, amounted to $47,725,754 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, infrastructure and construction-in-progress. Captial Assets (Net of Accumulated Depreciation) 2017 2016 Land $ 4,031,660 $ 4,031,660 Buildings and Improvements 17,579,884 16,984,281 Machinery and Equipment 4,281,204 3,950,094 Infrastructure 14,708,507 14,420,381 Construction-in-Progress 7,124,499 4,436,489 $ 47,725,754 $ 43,822,905 Additional information on the Town's capital assets can be found in Note 3 of this report. Long-Term Debt & Short-Term Capital Borrowings At the end of the current fiscal year, the Town had total bonded debt outstanding of $30,785,000. As required by New York State Law, all bonds issued by the Town are general obligation bonds, backed by the full faith and credit of the Town. During the 2017 fiscal year, the Town paid $9,115,845 in principal on outstanding long-term obligations and issued $7,040,000 in long-term obligations in the form of advance refunding serial bonds in order to capture an opportunity to refinance existing bonds for a lower interest cost to the Town thereby resulting in a significant saving over the life of the new bonds. Additional information on the Town's long-term debt and short-term capital borrowings can be found in Note 3 of this report. Requests for Information This financial report is designed to provide a general overview of the Town's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to Stephen Altieri - Town Administrator or Anthony Siligato — Town Comptroller, Town of Mamaroneck, 740 W. Boston Post Road, Mamaroneck, New York 10543. 13 Town of Mamaroneck, New York Statement of Net Position December 31, 2017 Component Unit Mamaroneck Governmental Housing Activities Authority ASSETS Cash and equivalents $ 67,672,495 $ 144,487 Investments 5,125,933 452,693 Receivables Taxes, net 24,446,385 - Accounts 752,652 - Due from other governments 676,308 - State and Federal aid 131,011 - Rents - 7,062 Interest - 1,947 Prepaid expenses 1,918,479 - Restricted assets - 187,234 Capital assets Not being depreciated 11,156,159 - Being depreciated, net 36,569,595 3,579,865 Total Assets 148,449,017 4,373,288 DEFERRED OUTFLOWS OF RESOURCES 6,156,185 12,500 LIABILITIES Accounts payable 1,381,257 42,751 Accrued liabilities 95,265 - Tenant deposits payable - 61,243 Due to school districts 55,384,071 - Due to other governments 10 - Overpayments 254,060 - Unearned revenues 12,893 - Accrued interest payable 183,395 12,514 Non-current liabilities Due within one year 2,540,300 280,000 Due in more than one year 66,514,529 1,627,456 Total Liabilities 126,365,780 2,023,964 DEFERRED INFLOWS OF RESOURCES 18,729,117 - NET POSITION Net investment in capital assets 20,552,890 2,057,459 Restricted for Future Capital Projects 125,000 - Debt service 871,666 Special districts Water 2,455,291 - Sewer 259,224 - Street lighting 11,178 - Refuse and garbage 109,153 - Section 8 housing assistance 472,180 - Tri-Municipal Cable TV 1,714,438 - Trusts 250,371 - Unrestricted (17,311,086) 304,365 Total Net Position $ 9,510,305 $ 2,361,824 The notes to the financial statements are an integral part of this statement. 14 Town of Mamaroneck, New York Statement of Activities Year Ended December 31, 2017 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities General government support $ 8,558,953 $ 2,116,759 $ 12,506 $ 5,170 Public safety 15,075,843 320,901 33,558 - Health 2,341,289 924,078 - - Transportation 6,094,052 1,005,275 118,954 332,093 Economic opportunity and development 7,181,791 - 6,826,431 - Culture and recreation 5,587,787 2,776,340 2,500 985 Home and community services 3,646,045 1,330,046 487,979 - Interest 766,612 - - 11,303 Total Governmental Activities $ 49,252,372 $ 8,473,399 $ 7,481,928 $ 349,551 Component unit- Mamaroneck Housing Authority $ 904,698 $ 869,813 $ - $ - General revenues Real property taxes Other tax items Payment in lieu of taxes Interest and penalties on real property taxes Utilities gross receipts taxes Non-property taxes Non-property tax distribution from County Unrestricted use of money and property Sale of property and compensation for loss Unrestricted State aid Miscellaneous Insurance recoveries Total General Revenues Change in Net Position Net Position - Beginning, as reported Cumulative Effect of Change in Accounting Principle Net Position- Beginning, as restated Net Position -Ending The notes to the financial statements are an integral part of this statement. 15 Net(Expense) Revenues and Changes in Net Position Component Unit Mamaroneck Governmental Housing Activities Authority $ (6,424,518) $ - (14,721,384) - (1,417,211) - (4,637,730) - (355,360) - (2,807,962) - (1,828,020) - (755,309) - (32,947,494) - (34,885) 25,233,805 - 1,348 - 1,067,806 - 9,771 - 1,827,391 - 36,289 5,321 1,348,579 - 1,524,938 - 3,899 10,189 145,852 - 31,199,678 15,510 (1,747,816) (19,375) 12,627,820 2,381,199 (1,369,699) - 11,258,121 2,381,199 $ 9,510,305 $ 2,361,824 16 Town of Mamaroneck, New York Balance Sheet Governmental Funds December 31, 2017 Town Outside Special General Villages Highway Districts ASSETS Cash and equivalents $ 56,114,044 $ 3,651,076 $ 1,027,433 $ 1,627,027 Investments 2,005,905 - - 3,120,028 Taxes receivable, net 24,446,385 - - - Other receivables Accounts 451,968 39,087 1,728 1,271 Due from other governments 121,794 469,417 23,374 61,723 State and Federal aid 18,281 - 10,035 - Due from other funds 434,575 34,621 94,400 69,266 1,026,618 543,125 129,537 132,260 Prepaid expenditures 339,732 654,792 473,007 450,948 Total Assets $ 83,932,684 $ 4,848,993 $ 1,629,977 $ 5,330,263 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 451,492 $ 210,010 $ 170,009 $ 66,371 Accrued liabilities 40,327 - 15,372 39,566 Due to school districts 55,384,071 - - - Due to other funds 163,009 27,184 395,448 35,598 Due to other governments 10 - - - Overpayments 254,060 - - - Unearned revenues 3,098 - - - Total Liabilities 56,296,067 237,194 580,829 141,535 Deferred inflows of resources Deferred tax revenues 581,949 - - - Taxes collected in advance 17,694,812 - - - Total Deferred Inflows of Resources 18,276,761 - - - Total Liabilities and Deferred Inflows of Resources 74,572,828 237,194 580,829 141,535 Fund balances Nonspendable 339,732 654,792 473,007 450,948 Restricted 125,000 - - 1,132,694 Assigned 964,645 3,957,007 576,141 3,605,086 Unassigned 7,930,479 - - - Total Fund Balances 9,359,856 4,611,799 1,049,148 5,188,728 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 83,932,684 $ 4,848,993 $ 1,629,977 $ 5,330,263 The notes to the financial statements are an integral part of this statement. 17 Section 8 Total Housing Capital Non-Major Governmental Assistance Projects Governmental Funds $ 824,649 $ 1,749,393 $ 2,678,873 $ 67,672,495 - - - 5,125,933 - - - 24,446,385 '- - 28,278 230,320 752,652 - - - 676,308 102,695 - 131,011 554,106 83,232 1,270,200 685,079 313,552 2,830,171 - - - 1,918,479 $ 824,649 $ 2,434,472 $ 2,992,425 $ 101,993,463 $ 535 $ 482,840 $ - $ 1,381,257 - - - 95,265 - - - 55,384,071 351,934 141,077 155,950 1,270,200 - - - 10 - - - 254,060 - 9,795 - 12,893 352,469 633,712 155,950 58,397,756 - - - 581,949 - - - 17,694,812 - - - 18,276,761 352,469 633,712 155,950 76,674,517 - - 1,918,479 - 1,800,760 887,867 3,946,321 472,180 - 1,948,608 11,523,667 _ - - 7,930,479 472,180 1,800,760 2,836,475 25,318,946 $ 824,649 $ 2,434,472 $ 2,992,425 $ 101,993,463 ii 18 (This page intentionally left blank) Town of Mamaroneck, New York Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position December 31, 2017 Fund Balances - Total Governmental Funds $ 25,318,946 Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 47,725,754 Governmental funds do not report the effect of losses on refunding bonds and assets or liabilities related to net pension assets (liabilities) whereas these amounts are deferred and amortized in the statement of activities. Deferred amounts on net pension liabilities - retirement system 4,776,228 Deferred amounts on total pension liabilities - length of service program 155,620 Deferred amounts on refunding bonds 190,032 5,121,880 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Real property taxes 581,949 Long-term liabilities that are not due and payable in the current period are not reported in the funds. Accrued interest payable (183,395) Bonds payable (30,881,753) Installment purchase debt payable (58,602) Compensated absences (513,370) Net pension liability - retirement system (5,318,690) Total pension liability - length of service program (1,642,414) Other post employment benefit obligations payable (30,640,000) (69,238,224) Net Position of Governmental Activities $ 9,510,305 The notes to the financial statements are an integral part of this statement. 19 Town of Mamaroneck,New York Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31,2017 Town Outside Special General Villages Highway Districts REVENUES Real property taxes $ 4,361,569 $ 9,569,007 $ 4,982,470 $ 6,561,652 Other tax items 1,078,925 - - - Non-property taxes - 1,827,391 - - Departmental income 3,718,585 225,694 22,683 2,100,063 Intergovernmental charges - - 370,269 122,966 Use of money and property 322,362 - 182 41,608 Licenses and permits 74,730 779,363 - - Fines and forfeitures 291,460 6,575 - - Sale of property and compensation for loss 30,493 1,200 29,967 5,067 State aid 1,968,777 - 118,772 - Federal aid 52,711 - - - Miscellaneous 31,140 7,991 20 117 Total Revenues 11,930,752 12,417,221 5,524,363 8,831,473 EXPENDITURES Current General government support 4,467,232 446,221 - - Public safety - 5,845,944 - 1,832,467 Health 424,619 59,100 - 1,117,013 Transportation 141,650 6,321 2,932,202 139,430 Economic opportunity and development 448,859 - - - Culture and recreation 2,574,305 1,341,083 - - Home and community services 462,843 219,351 - 2,159,687 Employee benefits 2,104,891 3,819,224 1,476,230 1,597,545 Debt service Principal - - - 29,300 Interest - - - 183 Refunding bond issuance costs - - - - Capital outlay - - - - Total Expenditures 10,624,399 11,737,244 4,408,432 6,875,625 Excess(Deficiency)of Revenues Over Expenditures 1,306,353 679,977 1,115,931 1,955,848 OTHER FINANCING SOURCES(USES) Refunding bonds issued - - - - Issuance premium - - - - Payment to refunded bond escrow account - - - - Sale of property 1,316,886 - - Insurance recoveries - 580 145,272 - Transfers in 132,318 154,279 41,938 69,150 Transfers out (1,687,739) (386,966) (1,497,770) (1,762,941) Total Other Financing Sources(Uses) (238,535) (232,107) (1,310,560) (1,693,791) Net Change in Fund Balances 1,067,818 447,870 (194,629) 262,057 FUND BALANCES Beginning of Year 8,292,038 4,163,929 1,243,777 4,926,671 End of Year $ 9,359,856 $ 4,611,799 $ 1,049,148 $ 5,188,728 The notes to the financial statements are an integral part of this statement. 20 Section 8 Total Housing Capital Non-Major Governmental Assistance Projects Governmental Funds $ - $ - $ - $ 25,474,698 - - - 1,078,925 - - - 1,827,391 - - 1,040,103 7,107,128 - - - 493,235 1,539 - 13,104 378,795 - - - 854,093 - - - 298,035 - - - 66,727 - 5,170 - 2,092,719 6,109,608 134,888 - 6,297,207 20,990 198,190 55,310 313,758 6,132,137 338,248 1,108,517 46,282,711 - - 946,204 5,859,657 - - - 7,678,411 - - - 1,600,732 - - - 3,219,603 6,372,335 - - 6,821,194 - - - 3,915,388 - - 5,647 2,847,528 - - - 8,997,890 - - 2,320,845 2,350,145 - - 858,864 859,047 - - 124,916 124,916 6,368,279 - 6,368,279 6,372,335 6,368,279 4,256,476 50,642,790 (240,198) (6,030,031) (3,147,959) (4,360,079) - - 7,040,000 7,040,000 - - 51,989 51,989 - - (6,967,073) (6,967,073) - - - 1,316,886 - - - 145,852 2,127,111 3,262,609 5,787,405 (140,747) (311,242) (5,787,405) - 1,986,364 3,076,283 1,587,654 (240,198) (4,043,667) (71,676) (2,772,425) 712,378 5,844,427 2,908,151 28,091,371 $ 472,180 $ 1,800,760 $ 2,836,475 $ 25,318,946 21 (This page intentionally left blank) Town of Mamaroneck, New York Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2017 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because Net Change in Fund Balances - Total Governmental Funds $ (2,772,425) Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay expenditures 6,160,806 Depreciation expense (2,257,957) 3,902,849 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Real property taxes (240,893) Bond and installment purchase debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Refunding bonds issued (7,040,000) Issuance premium (51,989) Payment to refunded bond escrow agent 6,967,073 Principal paid on installment purchase debt 29,300 Principal paid on bonds 2,320,845 Amortization of loss on refunding bonds and issuance premium 17,871 2,243,100 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Accrued interest 74,564 Compensated absences (37,922) Pension liabilities - retirement system (819,994) Pension liabilities - length of service program (117,095) Other post employment benefit obligations (3,980,000) (4,880,447) Change in Net Position of Governmental Activities $ (1,747,816) The notes to the financial statements are an integral part of this statement. 22 Town of Mamaroneck,New York Statement of Revenues,Expenditures and Changes in Fund Balances-Budget and Actual General,Town Outside Villages, Highway and Special Districts Funds Year Ended December 31,2017 General Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 3,838,591 $ 3,838,591 $ 4,361,569 $ 522,978 Other tax items 607,000 607,000 1,078,925 471,925 Non-property taxes - - - - Departmental income 3,561,375 3,561,375 3,718,585 157,210 Intergovernmental charges - - - - Use of money and property 270,000 270,000 322,362 52,362 Licenses and permits 35,250 35,250 74,730 39,480 Fines and forfeitures 300,000 300,000 291,460 (8,540) Sale of property and compensation for loss - - 30,493 30,493 State aid 1,818,725 1,830,423 1,968,777 138,354 Federal aid 67,740 67,740 52,711 (15,029) Miscellaneous 36,700 36,700 31,140 (5,560) Total Revenues 10,535,381 10,547,079 11,930,752 1,383,673 EXPENDITURES Current General government support 3,915,102 4,019,278 4,467,232 (447,954) Public safety - - - - Health 370,000 370,000 424,619 (54,619) Transportation 143,837 143,837 141,650 2,187 Economic opportunity and development 505,688 523,688 448,859 74,829 Culture and recreation 2,616,084 2,616,084 2,574,305 41,779 Home and community services 511,693 520,924 462,843 58,081 Employee benefits 2,187,750 2,187,750 2,104,891 82,859 Debt service Principal - - - - Interest - - - - Total Expenditures 10,250,154 10,381,561 10,624,399 (242,838) Excess(Deficiency)of Revenues Over Expenditures 285,227 165,518 1,306,353 1,140,835 OTHER FINANCING SOURCES(USES) Sale of property - - 1,316,886 1,316,886 Insurance recoveries - - - - Transfers in 93,000 130,731 132,318 1,587 Transfers out (1,266,203) (1,529,403) (1,687,739) (158,336) Total Other Financing Uses (1,173,203) (1,398,672) (238,535) 1,160,137 Net Change in Fund Balances (887,976) (1,233,154) 1,067,818 2,300,972 FUND BALANCES Beginning of year 887,976 1,233,154 8,292,038 7,058,884 End of Year $ - $ - $ 9,359,856 $ 9,359,856 23 Town Outside Villages Fund Highway Fund Variance with Variance with Final Budget Final Budget Original Final Positive Original Final Positive Budget Budget Actual (Negative) Budget Budget Actual (Negative) $ 9,585,429 $ 9,585,429 $ 9,569,007 $ (16,422) $ 4,991,021 $ 4,991,021 $ 4,982,470 $ (8,551) 1,700,000 1,700,000 1,827,391 127,391 - - - - 173,100 173,100 225,694 52,594 20,000 20,000 22,683 2,683 - - - 453,000 453,000 370,269 (82,731) - - - 100 100 182 82 478,000 478,000 779,363 301,363 - - - - 7,000 7,000 6,575 (425) - - - - 1,200 1,200 11,500 11,500 29,967 18,467 - - 85,000 85,000 118,772 33,772 1,500 1,500 - (1,500) - - - - 3,000 3,000 7,991 4,991 - - 20 20 11,948,029 11,948,029 12,417,221 469,192 5,560,621 5,560,621 5,524,363 (36,258) 477,565 511,075 446,221 64,854 - - - - 5,920,889 5,920,889 5,845,944 74,945 - - - - 59,100 59,100 59,100 - - - - - 23,050 23,050 6,321 16,729 3,057,227 3,061,727 2,932,202 129,525 1,342,650 1,342,650 1,341,083 1,567 - - - - 214,673 214,673 219,351 (4,678) - - - - 3,988,200 4,108,200 3,819,224 288,976 1,491,400 1,491,400 1,476,230 15,170 12,026,127 12,179,637 11,737,244 442,393 4,548,627 4,553,127 4,408,432 144,695 (78,098) (231,608) 679,977 911,585 1,011,994 1,007,494 1,115,931 108,437 - - 580 580 10,000 148,000 145,272 (2,728) 136,000 136,000 154,279 18,279 26,800 26,800 41,938 15,138 (372,701) (386,966) (386,966) - (1,091,893) (1,301,643) (1,497,770) (196,127) (236,701) (250,966) (232,107) 18,859 (1,055,093) (1,126,843) (1,310,560) (183,717) (314,799) (482,574) 447,870 930,444 (43,099) (119,349) (194,629) (75,280) 314,799 482,574 4,163,929 3,681,355 43,099 119,349 1,243,777 1,124,428 $ - $ - $ 4,611,799 $ 4,611,799 $ - $ - $ 1,049,148 $ 1,049,148 (Continued) 24 Town of Mamaroneck,New York Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual(Continued) General,Town Outside Villages, Highway and Special Districts Funds Year Ended December 31,2017 Special Districts Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 6,572,915 $ 6,572,915 $ 6,561,652 $ (11,263) Other tax items - - - - Non-property taxes - - - - Departmental income 1,505,998 1,505,998 2,100,063 594,065 Intergovernmental charges 113,000 113,000 122,966 9,966 Use of money and property 1,000 1,000 41,608 40,608 Licenses and permits - - - - Fines and forfeitures - - - - Sale of property and compensation for loss - - 5,067 5,067 State aid - - - - Federal aid - - - - Miscellaneous - - 117 117 Total Revenues 8,192,913 8,192,913 8,831,473 638,560 EXPENDITURES Current General government support - - - - Public safety 1,930,568 1,930,568 1,832,467 98,101 Health 1,176,119 1,176,119 1,117,013 59,106 Transportation 103,810 103,810 139,430 (35,620) Economic opportunity and development - - - - Culture and recreation - - - - Home and community services 2,203,033 2,218,183 2,159,687 58,496 Employee benefits 1,768,145 1,768,145 1,597,545 170,600 Debt service Principal 29,300 29,300 29,300 - Interest 200 200 183 17 Total Expenditures 7,211,175 7,226,325 6,875,625 350,700 Excess(Deficiency)of Revenues Over Expenditures 981,738 966,588 1,955,848 989,260 OTHER FINANCING SOURCES(USES) Insurance recoveries - - - - Transfers in 69,150 69,150 69,150 - Transfers out (1,078,673) (1,758,298) (1,762,941) (4,643) Total Other Financing Uses (1,009,523) (1,689,148) (1,693,791) (4,643) Net Change in Fund Balances (27,785) (722,560) 262,057 984,617 _ FUND BALANCES Beginning of year 27,785 722,560 4,926,671 4,204,111 End of Year $ - $ - $ 5,188,728 $ 5,188,728 The notes to the financial statements are an integral part of this statement. 25 Town of Mamaroneck, New York Statement of Assets and Liabilities Fiduciary Fund December 31, 2017 Agency ASSETS Cash and equivalents $ 586,657 LIABILITIES Accounts payable $ 119,661 Employee payroll deductions 1,762 Deposits 465,234 Total Liabilities $ 586,657 The notes to financial statements are an integral part of this statement. 26 (This page intentionally left blank) Town of Mamaroneck, New York Notes to Financial Statements December 31, 2017 Note 1 - Summary of Significant Accounting Policies The Town of Mamaroneck, New York ("Town") was established in 1661 and operates in accordance with Town Law and the various other applicable laws of the State of New York. The Town Board is the legislative body responsible for overall operation. The Town Administrator serves as the chief executive officer and the Town Comptroller serves as the chief financial officer. The Town provides the following services to its residents: public safety, health, transportation, economic opportunity and development, culture and recreation, home and community services and general and administrative support. The accounting policies of the Town conform to generally accepted accounting principles as applicable to governmental units and the Uniform System of Accounts as prescribed by the State of New York. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the Town's more significant accounting policies: A. Financial Reporting Entity The financial reporting entity consists of a) the primary government, which is the Town, b) organizations for which the Town is financially accountable and c) other organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete as set forth by GASB. In evaluating how to define the Town, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the Town's reporting entity was made by applying the criteria set forth by GASB, including legal standing, fiscal dependency and financial accountability. Based upon the application of these criteria, the following individual component unit is included in the Town's reporting entity because of its operational and financial relationship with the Town. The Mamaroneck Housing Authority ("Housing Authority") was organized in July 1992 as a municipal housing authority created and established under the Public Housing Law of the State of New York to provide affordable housing. The members of the Housing Authority's Board are appointed by the Town Board and, therefore, the Town is considered able to impose its will on the Housing Authority. Bonds issued by the Housing Authority are guaranteed by the Town. Since the Housing Authority does not provide services entirely or almost entirely to the Town, the financial statements of the Housing Authority have been reflected as a discretely presented component unit. Complete financial statements of the component unit can be obtained from its administrative office at the address indicated below. Town of Mamaroneck Housing Authority 740 West Boston Post Road Mamaroneck, New York 10543 B. Government-Wide Financial Statements The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all non-fiduciary activities of the primary government as a whole and its component unit. For the most part, the effect of interfund activity has been removed from these statements, except for interfund services provided and used. 27 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) The Statement of Net Position presents the financial position of the Town at the end of its fiscal year. The Statement of Activities demonstrates the degree to which direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods or services, or privileges provided by a given function or segment, (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment and (3) interest earned on grants that is required to be used to support a particular program. Taxes and other items not identified as program revenues are reported as general revenues. The Town does not allocate indirect expenses to functions in the Statement of Activities. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter is excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Fund Financial Statements The accounts of the Town are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts, which comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances/net position, revenues and expenditures/expenses. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. The Town maintains the minimum number of funds consistent with legal and managerial requirements. The focus of governmental fund financial statements is on major funds as that term is defined in professional pronouncements. Each major fund is to be presented in a separate column, with non-major funds aggregated and presented in a single column. Fiduciary funds are reported by type. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements' governmental activities column, a reconciliation is presented on the pages following, which briefly explain the adjustments necessary to transform the fund based financial statements into the governmental activities column of the government-wide presentation. The Town's resources are reflected in the fund financial statements in two broad fund categories, in accordance with generally accepted accounting principles as follows: Fund Categories a. Governmental Funds - Governmental Funds are those through which most general government functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds. The following are the Town's major governmental funds. General Fund - The General Fund constitutes the primary operating fund of the Town and is used to account for and report all financial resources not accounted for and reported in another fund. Special Revenue Funds - Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted, committed, or assigned to expenditures for specific purposes other than debt service or capital projects. The major special revenue funds of the Town are as follows: 28 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) Town Outside Villages Fund - The Town Outside Villages Fund is used to account for transactions, which by statute affect only those areas outside the boundaries of the villages located within the Town. The major revenues of this fund are real property taxes and non-property taxes. Highway Fund - The Highway Fund is used to account for road and bridge maintenance and improvements as defined in the Highway Law of the State of New York. The major revenue of this fund is real property taxes. Special Districts Fund - The Special Districts Fund is provided to account for the operation and maintenance of the Town's water, sewer, street lighting, refuse and garbage, ambulance and fire protection. The major revenues of this fund are real property taxes and departmental income. Section 8 Housing Assistance Fund - The Section 8 Housing Assistance Fund is provided to account for resources received from the U.S. Department of Housing and Urban Development for housing assistance payment purposes. Capital Projects Fund - The Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of major capital facilities and other capital assets. The Town also reports the following non-major governmental funds. Special Revenue Funds: Tri-Municipal Cable T.V. Fund - The Tri-Municipal Cable T.V. Fund is used to account for franchise fees collected and expenditures for the joint activity cable T.V. operations. Special Purpose Fund - The Special Purpose Fund is used to account for assets held by the Town in accordance with terms of a trust agreement. Debt Service Fund - The Debt Service Fund is provided to account for and report financial resources that are restricted, committed or assigned to expenditures for principal and interest and for financial resources that are being accumulated for principal and interest maturing in future years. b. Fiduciary Funds (Not Included in Government-Wide Financial Statements) - The Fiduciary Funds are used to account for assets held by the Town in an agency capacity on behalf of others. The Agency Fund is used to account for employee payroll withholdings or deposits that are payable to other jurisdictions or individuals. D. Measurement Focus, Basis of Accounting and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources 29 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) (all assets and liabilities). The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. The Agency Fund has no measurement focus but utilizes the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Property taxes are considered to be available if collected within sixty days of the fiscal year end. If expenditures are the prime factor for determining eligibility, revenues from Federal and State grants are recognized as revenues when the expenditure is made. A ninety day availability period is generally used for revenue recognition for most other governmental fund revenues. Fees and other similar revenues are not susceptible to accrual because generally they are not measurable until received in cash. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, net pension liability, total pension liability and other post employment benefit obligations are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Component Units Component units are presented on the basis of accounting that most accurately reflects their activities. The Housing Authority is accounted for on the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded at the time liabilities are incurred. E. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balances Cash and Equivalents, Investments and Risk Disclosure Cash and Equivalents - Cash and equivalents consist of funds deposited in demand deposit accounts, time deposit accounts and certificates of deposit with original maturities of less than three months. The Town's deposits and investment policies are governed by State statutes. The Town has adopted its own written investment policy which provides for the deposit of funds in FDIC insured commercial banks or trust companies located within the State. The Town is authorized to use demand deposit accounts, time deposit accounts and certificates of deposit. 30 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) Collateral is required for demand deposit accounts, time deposit accounts and certificates of deposit at 100% of all deposits not covered by Federal deposit insurance. The Town has entered into custodial agreements with the various banks which hold their deposits. These agreements authorize the obligations that may be pledged as collateral. Such obligations include. among other instruments, obligations of the United States and its agencies and obligations of the State and its municipal and school district subdivisions. Investments - Permissible investments include obligations of the U.S. Treasury, U.S. Agencies, repurchase agreements and obligations of New York State or its political subdivisions. The Town follows the provisions of GASB Statement No. 72, "Fair Value Measurements and Application', which defines fair value and establishes a fair value hierarchy organized into three levels based upon the input assumptions used in pricing assets. Level 1 inputs have the highest reliability and are related to assets with unadjusted quoted prices in active markets. Level 2 inputs relate to assets with other than quoted prices in active markets which may include quoted prices for similar assets or liabilities or other inputs which can be corroborated by observable market data. Level 3 inputs are unobservable inputs and are used to the extent that observable inputs do not exist. The Town participates in the Cooperative Liquid Assets Securities System ("CLASS"), a cooperative investment pool, established pursuant to Articles 3A and 5G of General Municipal Law of the State of New York. CLASS has designated Public Trust Advisors, LLC as its registered investment advisor. Public Trust Advisors, LLC is registered with the Securities and Exchange Commission ("SEC"), and is subject to all of the rules and regulations of an investment advisor handling public funds. As such, the SEC provides regulatory oversight of CLASS. The pool is authorized to invest in various securities issued by the United States and its agencies, obligations of the State of New York and repurchase agreements. These investments are reported at fair value. CLASS issues separately available audited financial statements with a year end of June 30th. At June 30, 2017, the percentage of fair values to total pool assets by investment type are as follows: Quoted Prices in Active Significant Significant Markets for Other Other Identical Observable Unobservable Assets Inputs Inputs Other Asset Category Total (Level 1) (Level 2) (Level 3) (Cost) Cash 27% 0% 0% 0% 27% Repurchase agreements 25% 0% 25% 0% 0% U.S. Government Treasury Securities 48% 0% 48% 0% 0% Total 100% 0% 73% 0% 27% 31 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) The maximum maturity for any specific investment in the portfolio is 397 days. CLASS is rated AAAm by Standard & Poor's. Local government investment cooperatives in this rating category meet the highest standards for credit quality, conservative investment policies and safety of principal. The cooperative invests in a high quality portfolio of investments legally permissible for municipalities and school districts in the State. Additional information concerning the cooperative is presented in the annual report of CLASS, which may be obtained from Public Trust Advisors, LLC, 999 18th Street, Suite 1230, Denver, CO 80202. Investments of the Fire Protection District are stated at fair value. The amounts are invested in various portfolios by the trustee of the Fund, who has been designated by the State Comptroller. These investments are unrated. The Town has no formal policy relating to interest rate or credit risk for Pension Trust investments. Investments of the Housing Authority consist of negotiable certificates of deposit and money market funds. Investments are stated at cost, which approximates fair value. The investments are not subject to risk categorization. Risk Disclosure Interest Rate Risk - Interest rate risk is the risk that the government will incur losses in fair value caused by changing interest rates. The Town does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from changing interest rates. Generally, the Town does not invest in any long-term investment obligations. Custodial Credit Risk - Custodial credit risk is the risk that in the event of a bank failure, the Town's deposits may not be returned to it. GASB Statement No. 40 directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by depository insurance and the deposits are either uncollateralized, collateralized by securities held by the pledging financial institution or collateralized by securities held by the pledging financial institution's trust department but not in the Town's name. The Town's aggregate bank balances that were not covered by depository insurance were not exposed to custodial credit risk at December 31, 2017. Credit Risk - Credit risk is the risk that an issuer or other counterparty will not fulfill its specific obligation even without the entity's complete failure. The Town does not have a formal credit risk policy other than restrictions to obligations allowable under General Municipal Law of the State of New York. Concentration of Credit Risk - Concentration of credit risk is the risk attributed to the magnitude of a government's investments in a single issuer. The Town's investment policy limits the amount on deposit at each of its banking institutions. 32 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) Taxes Receivable - Real property taxes attach as an enforceable lien on real property and are levied on January 1st. The Town collects county, town, highway and special district taxes, which are due April 1st and payable without penalty to April 30th. School districts taxes are levied on July 1st and are due on September 1st, with the first half payable without penalty until September 30th and the second half payable without penalty until January 31st. The Town guarantees the full payment of the County and school districts warrants and assumes the responsibility for uncollected taxes. The Town also has the responsibility for conducting in-rem foreclosure proceedings. The Town functions in both a fiduciary and guarantor relationship with the County of Westchester and the various school districts located within the Town with respect to the collection and payment of real property taxes levied by such jurisdictions. County taxes are included in the Town's levy and are payable without penalty for thirty days. The County Charter provides for the Town to collect County and school districts taxes and remit them as collected to the respective municipality. However, the Town must remit to the County sixty percent of the amount levied by May 25th and the balance of forty percent on October 15th. With respect to school districts taxes, the Charter provides that the Town satisfy the warrant of each school district by April 5th. Thus, the Town's fiduciary responsibility is from the date of the levy until the due date of the respective tax warrant at which time the Town must satisfy its obligations to the municipalities regardless of the amounts collected. The County tax warrant is due in October and uncollected County taxes have been accounted for in a manner similar to Town taxes. The collection of school districts taxes is deemed a financing transaction until the warrants are satisfied. Other Receivables - Other receivables include amounts due from other governments and individuals for services provided by the Town. Receivables are recorded and revenues recognized as earned or as specific program expenses/expenditures are incurred. Allowances are recorded when appropriate. Due From/To Other Funds - During the course of its operations, the Town has numerous transactions between funds to finance operations, provide services and construct assets. To the extent that certain transactions between funds had not been paid or received as of December 31, 2017, balances of interfund amounts receivable or payable have been recorded in the fund financial statements. Inventory - There are no inventory values presented in the balance sheets of the respective funds of the Town. Purchases of inventoriable items at various locations are recorded as expenditures at the time of purchase and year-end balances at these locations are not material. Prepaid Expenses/Expenditures - Certain payments to vendors reflect costs applicable to future accounting periods, and are recorded as prepaid items using the consumption method in both the government wide and fund financial statements. Prepaid expenses/expenditures consist of costs which have been satisfied prior to the end of the fiscal year, but represent amounts which have been provided for in the subsequent year's budget and/or will benefit such periods. Reported amounts in governmental funds are equally offset by nonspendable fund balance, which indicates that these amounts do not constitute "available spendable resources" even though they are a component of current assets. 33 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) Restricted Assets - The Housing Authority's restricted assets include rent security deposits required from tenants according to the terms of the lease agreements. In addition, certain proceeds from the Housing Authority revenue bonds, as well as certain other resources, are set aside pursuant to the terms of the bond indenture. Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the Town chose to include all such items regardless of their acquisition date or amount. The Town was able to estimate the historical cost for the initial reporting of these assets through backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). Major outlays for capital assets and improvements are capitalized as projects are constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives is not capitalized. Land and construction-in-progress are not depreciated. Property, plant, equipment and infrastructure of the Town are depreciated using the straight line method over the following estimated useful lives. Life Class in Years Buildings and improvements 20-50 Machinery and equipment 5-20 Infrastructure 30-50 The costs associated with the acquisition or construction of capital assets are shown as capital outlay expenditures on the governmental fund financial statements. Capital assets are not shown on the governmental fund balance sheet. Unearned Revenues - Unearned revenues arise when assets are recognized before revenue recognition criteria have been satisfied. In government-wide financial statements, unearned revenues consist of amounts received in advance and/or grants received before the eligibility requirements have been met. Unearned revenues in the fund financial statements are those where asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The Town has reported unearned revenues of $3,098 for rents received in advance in the General Fund and $9,795 for State aid received in advance in the Capital Projects Fund. These amounts have been deemed to be measurable but not "available" pursuant to generally accepted accounting principles. 34 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) Deferred Outflows/Inflows of Resources - In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Town has reported deferred outflows of resources of$190,032 for a deferred loss on refunding bonds in the government-wide Statement of Net Position. This amount results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The Town reported deferred inflows of resources of$581,949 for real property taxes not expected to be collected within the first sixty days of the subsequent fiscal year in the General Fund and $17,694,812 of taxes collected in advance in the General Fund and the Government-Wide Statement of Net Position. These amounts are deferred and recognized as an inflow of resources in the period that the amount becomes available. The Town reported deferred outflows and deferred inflows of resources in relation to its pension obligations. A summary of the Town's deferred outflows and deferred inflows of resources are as follows: Deferred Deferred Outflows Inflows of Resources of Resources Pension Plans - Employee Retirement System $ 2,098,083 $ 349,043 Pension Plans - Police and Fire Retirement System 3,712,450 685,262 Defined Benefit - Fire Service Awards Program 155,620 - Deferred Loss on Refunding bonds 190,032 - Taxes collected in advance - 17,694,812 $ 6,156,185 $ 18,729,117 These amounts are detailed in the discussion of the Town's pension plans in Note 3F. The Authority reported deferred outflows of resources of $12,500 for a deferred loss on refunding in the Statement of Net Position. This amount results from the difference in the carrying value of the refunded debt and its requisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Long-Term Liabilities - In the government-wide financial statements, long-term debt and other long-term liabilities are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred. 35 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as Capital Projects Fund expenditures. Net Pension Liability - The net pension liability represents the Town's proportionate share of the net pension liability of the New York State and Local Employees' Retirement System. The financial reporting of these amounts are presented in accordance with the provisions of GASB Statement No. 68, "Accounting and Financial Reporting for Pensions" and GASB Statement No. 71, "Pension Transition for Contributions Made Subsequent to the Measurement Date". Total Pension Liability - Length of Service Award Program - The financial reporting of these amounts are presented in accordance with the provisions of GASB Statement No. 73, `Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68". Compensated Absences - The various collective bargaining agreements provide for the payment of accumulated vacation and sick leave upon separation from service. The liability for such accumulated leave is reflected in the government-wide Statement of Net Position as current and long-term liabilities. A liability for these amounts is reported in the governmental funds only if the liability has matured through employee resignation or retirement. The liability for compensated absences includes salary related payments, where applicable. Net Position - Net position represents the difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the Town or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Net position on the Statement of Net Position includes, net investment in capital assets, restricted for future capital projects, debt service, special districts, Section 8 Housing Assistance, Tri-Municipal Cable TV and trusts. The balance is classified as unrestricted. Fund Balances - Generally, fund balance represents the difference between current assets and deferred outflows of resources and current liabilities and deferred inflows of resources. In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Under this standard the fund balance classifications are as follows: Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form (inventories, prepaid amounts, long-term receivables, advances) or they are legally or contractually required to be maintained intact (the corpus of a permanent fund). Restricted fund balance is reported when constraints placed on the use of the resources are imposed by grantors, contributors, laws or regulations of other governments or imposed by law through enabling legislation. Enabling legislation includes a legally enforceable requirement that these resources be used only for the specific purposes as 36 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) provided in the legislation. This fund balance classification is used to report funds that are restricted for debt service obligations and for other items contained in the General Municipal Law of the State of New York. Committed fund balance is reported for amounts that can only be used for specific purposes pursuant to formal action of the entity's highest level of decision making authority. The Town Board is the highest level of decision making authority for the Town that can, by the adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, these funds may only be used for the purpose specified unless the Town Board removes or changes the purpose by taking the same action that was used to establish the commitment. This classification includes certain amounts established and approved by the Town Board. Assigned fund balance, in the General Fund, represents amounts constrained either by policies of the Town Board for amounts assigned for balancing the subsequent year's budget or the Town Supervisor for amounts assigned as encumbrances. Unlike commitments, assignments generally only exist temporarily, in that additional action does not normally have to be taken for the removal of an assignment. An assignment cannot result in a deficit in the unassigned fund balance in the General Fund. Assigned fund balance in all funds except the General Fund includes all remaining amounts, except for negative balances, that are not classified as nonspendable and are neither restricted nor committed. Unassigned fund balance, in the General Fund, represents amounts not classified as nonspendable, restricted, committed or assigned. The General Fund is the only fund that would report a positive amount in unassigned fund balance. For all governmental funds other than the General Fund, unassigned fund balance would necessarily be negative, since the fund's liabilities and deferred inflows of resources, together with amounts already classified as nonspendable, restricted and committed would exceed the fund's assets and deferred outflows of resources. In order to calculate the amounts to report as restricted and unrestricted fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the Town's policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the Town's policy to use fund balance in the following order: committed, assigned and unassigned. F. Encumbrances In governmental funds, encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve applicable appropriations, is generally employed as an extension of formal budgetary integration in the General, Town Outside Villages, Highway, Special Districts and Tri-Municipal Cable TV funds. Encumbrances outstanding at year-end are generally reported as assigned fund balance since they do not constitute expenditures or liabilities. 37 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 1 - Summary of Significant Accounting Policies (Continued) G. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. H. Subsequent Events Evaluation by Management Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued, which date is May 18, 2018. Note 2 - Stewardship, Compliance and Accountability A. Budgetary Data The Town generally follows the procedures enumerated below in establishing the budgetary data reflected in the financial statements: a) Prior to October 20th, the head of each administrative unit shall submit to the budget officer an estimate of revenues and expenditures for such administrative unit for the ensuing year. b) The budget officer, upon completion of the review of the estimates, shall prepare a tentative budget and file such budget in the office of the Town Clerk on or before October 30th. c) On or before November 10th, the Town Clerk shall present the tentative budget to the Town Board. d) The Town Board shall review the tentative budget and may make such changes, alterations and revisions as it shall consider advisable and which are consistent with law. Upon completion of such review, the tentative budget and any modifications as approved by the Town Board shall become the preliminary budget. e) On or before December 10th, the Town Board shall hold a public hearing on the preliminary budget. f) After the public hearing, the Town Board may further change, alter and revise the preliminary budget subject to provisions of the law. g) The preliminary budget as submitted or amended shall be adopted by resolution no later than December 20th. h) Formal budgetary integration is employed during the year as a management control device for General, Town Outside Villages, Highway, Special Districts, Tri-Municipal Cable TV and Debt Service funds. 38 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 2 - Stewardship, Compliance and Accountability (Continued) i) Budgets for General, Town Outside Villages, Highway, Special Districts, Tri-Municipal Cable TV and Debt Service funds are legally adopted annually on a basis consistent with generally accepted accounting principles. The Capital Projects Fund is budgeted on a project basis. Annual budgets are not adopted by the Town Board for the Section 8 Housing Assistance and Special Purpose funds. j) The Town Board has established legal control of the budget at the function level of expenditures. Transfers between appropriation accounts, at the function level, require approval by the Town Board. Any modifications to appropriations resulting from an increase in revenue estimates or supplemental reserve appropriations also require a majority vote by the Board. k) Appropriations in General, Town Outside Villages, Highway, Special Districts, Tri-Municipal Cable TV and Debt Service funds lapse at the end of the fiscal year, except that outstanding encumbrances are reappropriated in the succeeding year pursuant to the Uniform System of Accounts promulgated by the Office of the State Comptroller. Budgeted amounts are as originally adopted, or as amended by the Town Board. B. Property Tax Limitation The Town is not limited as to the maximum amount of real property taxes which may be raised. However, on June 24, 2011, the Governor signed Chapter 97 of the Laws of 2011 ("Tax Levy Limitation Law"). This applies to all local governments. The Tax Levy Limitation Law restricts the amount of real property taxes that may be levied by a Town in a particular year. The original legislation that established the Tax levy Limitation Law was set to expire on June 16, 2016. Chapter 20 of the Laws of 2015 extends the Tax Levy Limitation Law through June 2020. The following is a brief summary of certain relevant provisions of the Tax Levy Limitation Law. The summary is not complete and the full text of the Tax Levy Limitation Law should be read in order to understand the details and implementations thereof. The Tax Levy Limitation Law imposes a limitation on increases in the real property tax levy, subject to certain exceptions. The Tax Levy Limitation Law permits the Town to increase its overall real property tax levy over the tax levy of the prior year by no more than the "Allowable Levy Growth Factor," which is the lesser of one and two-one hundredths or the sum of one plus the Inflation Factor; provided, however that in no case shall the levy growth factor be less than one. The "Inflation Factor" is the quotient of: (i) the average of the 20 National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the coming fiscal year minus the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve- month period ending six months prior to the start of the prior fiscal year, divided by (ii) the average of the National Consumer Price Indexes determined by the United States with the result expressed as a decimal to four places. The Town is required to calculate its tax levy limit for the upcoming year in accordance with the provision above and provide all relevant information to the New York State Comptroller prior to adopting its budget. The Tax Levy Limitation Law sets forth certain exclusions to the real property tax levy limitation of the Town, including exclusions for 39 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 2 - Stewardship, Compliance and Accountability (Continued) certain portions of the expenditures for retirement system contributions and tort judgments payable by the Town. The Town Board may adopt a budget that exceeds the tax levy limit for the coming fiscal year, only if the Town Board first enacts, by a vote of at least sixty percent of the total voting power of the Town Board, a local law to override such limit for such coming fiscal year. C. Cumulative Effect of Change in Accounting Principle The Town, for the year ended December 31, 2017, implemented the requirements of GASB Statement No. 73, `Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68" that establishes requirements for defined benefit pensions that are not within the scope of GASB Statement No. 68. As a result of adopting this standard, a cumulative effect for the change in accounting principle of $1,369,699 was recorded in the Governmental Activities. D. Expenditures in Excess of Budget The following functional expenditure categories exceed their budgetary authorization by the amounts indicated: General Fund General Government Support Finance $ 9,659 Assessor 61,124 Town Attorney 11,124 Personnel 25,955 Central communications 29,735 Taxes on Town property 65,681 Judgments and claims 1,801 Unallocated insurance 12,831 Credit card fees 393,208 Health Narcotics Guidance Council 54,619 Culture and Recreation Special recreation facility 43,058 Employee Benefits Life insurance 8 Other Financing Uses Transfers out- Capital Projects Fund 158,336 In addition, the entire General Fund budget was overexpended by $401,174. 40 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 2 - Stewardship, Compliance and Accountability (Continued) Town Outside Villages Fund General Government Support Central communications $ 8,091 Unallocated insurance 11,412 Credit card fees 1,804 Public Safety Safety inspection 36,538 Culture and Recreation Joint youth advocate 25 Home and Community Services Planning board 6,060 Environmental control 812 Highway Fund Transfers out 196,127 Special Districts Fund Transportation 35,620 Other Financing Uses - Transfers out 4,643 Tri-Municipal Cable T.V. Fund General Government Support 26,362 E. Capital Projects Fund Deficits Deficits in individual projects arise because of expenditures exceeding current financing on the projects. These deficits will be eliminated with the subsequent receipt or issuance of authorized financing. F. Excess of Actual Expenditures Over Budget—Capital Projects Fund The following capital projects exceeded their budgetary authorization by the amounts indicated below: Police Headquarters Renovation 24-6 $ 20,803 Water Capital Improvement 2014-12 161 Water Capital Improvement 2015-12 317,773 Recreation Facility Improvement 2016-31 3,775 Parking Lot Town Center 2016-48 203,659 Police Vehicles 2017-02 808 Roads, Sidewalk and Curbs 2017-04 110,956 Computer Software 2017-19 9,795 Computer Hardware 2017-20 31,840 Parking Lot Town Improvement 2017-48 9,131 41 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds A. Taxes Receivable Taxes receivable at December 31, 2017 consisted of the following: Town and County taxes - Current $ 197,146 School districts taxes - Current 23,778,963 Tax liens 1,790,544 Property acquired for taxes 31,321 25,797,974 Allowance for uncollectible amounts (1,351,589) $ 24,446,385 School districts taxes are offset by liabilities to the school districts, which will be paid no later than April 5, 2018. Taxes receivable are also partially offset by deferred tax revenues of$581,949 which represents an estimate of the taxes receivable which will not be collected within the first sixty days of the subsequent year. B. Due From/To Other Funds The balances reflected as due from/to other funds at December 31, 2017 were as follows: Due Due Fund From To General $ 434,575 $ 163,009 Town Outside Villages 34,621 27,184 Highway 94,400 395,448 Special Districts 69,266 35,598 Section 8 Housing Assistance - 351,934 Capital Projects 554,106 141,077 Non-Major Governmental 83,232 155,950 $ 1,270,200 $ 1,270,200 The outstanding balances between funds results mainly from the time lag between the dates that 1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system and 3) payments between funds are made. 42 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) C. Capital Assets Changes in the Town's capital assets are as follows: Balance Balance January 1, December 31, 2017 Additions Deletions 2017 Capital Assets, not being depreciated: Land $ 4,031,660 $ - $ - $ 4,031,660 Construction-in-progress 4,436,489 3,706,440 1,018,430 7,124,499 Total Capital Assets, not being depreciated $ 8,468,149 $ 3,706,440 $ 1,018,430 $ 11,156,159 Capital Assets, being depreciated: Buildings and improvements $ 23,769,777 $ 1,237,883 $ - $ 25,007,660 Machinery and equipment 12,884,988 1,186,034 404,404 13,666,618 Infrastructure 32,912,682 1,048,879 - 33,961,561 Total Capital Assets, being depreciated 69,567,447 3,472,796 404,404 72,635,839 Less Accumulated Depreciation for: Buildings and improvements 6,785,496 642,280 - 7,427,776 Machinery and equipment 8,934,894 854,924 404,404 9,385,414 Infrastructure 18,492,301 760,753 - 19,253,054 Total Accumulated Depreciation 34,212,691 2,257,957 404,404 36,066,244 Total Capital Assets, being depreciated, net $ 35,354,756 $ 1,214,839 $ - $ 36,569,595 Capital Assets, net $ 43,822,905 $ 4,921,279 $ 1,018,430 $ 47,725,754 Depreciation expense was charged to the Town's functions and programs as follows: General Government Support $ 250,741 Public Safety 379,157 Transportation 1,037,676 Economic Opportunity and Development 91,561 Culture and Recreation 280,931 Home and Community Services 217,891 Total Depreciation Expense $ 2,257,957 43 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Capital Assets - Component Unit Changes in the Housing Authority's capital assets are as follows: Balance Balance January 1, December 31, 2017 Additions 2017 Capital Assets, being depreciated Buildings and improvements $ 6,662,374 $ 42,326 $ 6,704,700 Machinery and equipment 741,480 - 741,480 Total Capital Assets, being depreciated 7,403,854 42,326 7,446,180 Less Accumulated Depreciation for Buildings and improvements 3,146,276 246,690 3,392,966 Machinery and equipment 410,732 62,617 473,349 Total Accumulated Depreciation 3,557,008 309,307 3,866,315 Total Capital Assets. being depreciated, net $ 3,846,846 $ (266,981) $ 3,579,865 D. Accrued Liabilities Accrued Liabilities at December 31, 2017 were as follows: Fund Special General Highway Districts Total Payroll and Employee Benefits $ 40,327 $ 15,372 $ 39,566 $ 95,265 E. Joint Ventures The Town and the Village of Larchmont ("Village") participate in the Larchmont-Mamaroneck Joint Garbage Disposal Commission. The purpose of the joint venture is to provide incineration of garbage and refuse from the Village and the Town Garbage District. The following is an audited summary of the financial information included in the financial statements of the joint venture. Balance Sheet Date— December 31, 2017 Total Assets $ 2,349,770 Total Liabilities 4,762,896 Net Position (Deficit) (2,413,126) Total Revenues 3,682,277 Total Expenditures 4,316,563 Decrease in Net Position (634,286) 44 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) The Town, together with the Village of Mamaroneck and the TownNillage of Harrison, participate in the Westchester Joint Water Works. The purpose of the joint venture is to acquire, construct, provide, maintain and operate a water works system. The following is an audited summary of special purpose financial information included in the financial statements of the joint venture. Balance Sheet Date - December 31, 2017 Total Assets $ 11,466,087 Total Liabilities 49,441,443 Net Deficit (33,975,356) Total Revenues 26,818,797 Total Expenses 28,216,714 Net Decrease in Net Assets (1,397,917) The Town, together with the Villages of Mamaroneck and Larchmont, formed the Tri-Municipal Larchmont-Mamaroneck Cable TV Board of Control. The Board was organized to administer the franchise agreement with Verizon and UA-Columbia Cablevision of Westchester. The franchise fees received are used to operate three public cable TV channels, serving the community interests of Larchmont and Mamaroneck. The following is an audited summary of financial information included in the financial statements of the Larchmont-Mamaroneck Community Television joint venture. Balance Sheet Date - December 31, 2017 Total Assets $ 93,557 Total Liabilities 3,223 Net Assets 90,334 Total Revenues 685,277 Total Expenses 689,921 Net Decrease in Net Assets (4,644) F. Long-Term Liabilities The following table summarizes changes in the Town's long-term indebtedness for the year ended December 31, 2017: Cumulative Balance Effect of Balance as Reported Change in as Restated Maturities Balance January 1, Accounting January 1, New Issues/ and/or December 31, Due Within 2017 Principle 2017 Additions Payments 2017 One Year Governmental Activities Bonds Payable $ 32,860,845 $ - $ 32,860,845 $ 7,040,000 $ 9,115,845 $ 30,785,000 $ 2,460,000 Plus Unamortized premium on bonds 74,607 - 74,607 51,989 29,843 96,753 - 32,935,452 - 32,935,452 7,091,989 9,145,688 30,881,753 2,460,000 Installment Purchase Debt Payable 87,902 - 87,902 - 29,300 58,602 29,300 45 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Cumulative Balance Effect of Balance as Reported Change in as Restated Maturities Balance January 1, Accounting January 1, New Issues/ and/or December 31, Due Within 2017 Principle 2017 Additions Payments 2017 One Year Other Non-Current Liabilities Compensated Absences $ 475,448 $ - $ 475,448 $ 85,922 $ 48,000 $ 513,370 $ 51,000 Net Pension Liability 8,150,406 - 8,150,406 - 2,831,716 5,318,690 - Total Pension Liability-Length of service award program - 1,369,699 1,369,699 272,715 - 1,642,414 - Other Post Employment Benefit Obligations Payable 26,660,000 - 26,660,000 5,960,000 1,980,000 30,640,000 - Total Other Non-Current Liabilities 35,285,854 1,369,699 36,655,553 6,318,637 4,859,716 38,114,474 51,000 Governmental Activities Long-Term Liabilities $ 68,309,208 $ 1,369,699 $ 69,678,907 $ 13,410,626 $ 14,034,704 $ 69,054,829 $ 2,540,300 Mamaroneck Housing Authority Component Unit Revenue Bonds Payable $ 1,910,000 $ - $ 1,910,000 $ - $ 270,000 $ 1,640,000 $ 280,000 Plus Unarnortized premium on bonds 31,459 - 31,459 - 6,991 24,468 - 1,941,459 - 1,941,459 - 276,991 1,664,468 280,000 Deferred Rent Payable 274,353 - 274,353 - 31,365 242,988 - Component Unit- Long-Term Liabilities $ 2,215,812 $ - $ 2,215,812 $ - $ 308,356 $ 1,907,456 $ 280,000 Each governmental fund's liability for compensated absences, net pension liability, total pension liability and other post employment benefit obligations payable are liquidated by the respective fund. Governmental liabilities for bonds are liquidated by the Debt Service Fund, which is funded by the General, Town Outside Villages, Highway and Special Districts funds. Governmental liabilities for installment purchase debt are liquidated by the Special Districts Fund - Ambulance District. Bonds Payable Bonds payable at December 31, 2017 are comprised of the following individual issues: Amount Outstanding Original at Year of Issue Final Interest December 31, Purpose Issue Amount Maturity Rates 2017 Fire District Improvements 2007 $ 460,000 October, 2022 4.30-4.375 % $ 185,000 Public Improvements 2009 4,170,000 March, 2029 3.25-4.125 385,000 Public Improvements 2010 3,320,000 October, 2030 2.50-3.500 155,000 Public Improvements 2013 4,158,000 May, 2028 2.00-2.500 3,175,000 Fire District Improvements 2013 996,000 May, 2026 2.590 725,000 Refunding Bonds 2013 2,630,000 June, 2019 3.000 800,000 Public Improvements 2014 8,860,000 July, 2033 2.00-3.250 7,670,000 Public Improvements 2016 2,185,000 July, 2031 2.00-3.000 2,050,000 Public Improvements 2016 8,990,845 October, 2036 2.00-2.300 8,600,000 Refunding Bonds 2017 7,040,000 March, 2030 2.00-2.350 7,040,000 $ 30,785,000 46 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Interest expenditures of $858,864 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $766,429 was recorded in the government-wide financial statements for governmental activities. Installment Purchase Debt Payable The Town has entered into an agreement to finance the cost of purchasing certain equipment. The lease meets the criteria of a capital lease. The terms of the agreements provide for repayment in annual installments, through 2019, including interest at .21%. Interest expenditures of $183 were recorded in the fund financial statements in the Special Districts Fund - Ambulance District and in the District-Wide financial statements. The balance due at December 31, 2017 was $58,602. Payments to Maturity The annual requirements to amortize all bonded debt outstanding as of December 31, 2017 including interest payments of$5,714,106 are as follows: Year Ending Bonds Installment Purchase Debt Total December 31, Principal Interest Principal Interest Principal Interest 2018 $ 2,460,000 $ 646,701 $ 29,300 $ 183 $ 2,489,300 $ 646,884 2019 2,140,000 635,614 29,302 183 2,169,302 635,797 2020 1,925,000 589,266 - - 1,925,000 589,266 2021 1,965,001 547,954 - - 1,965,001 547,954 2022 2,010,000 505,662 - - 2,010,000 505,662 2023-2027 10,380,001 1,862,381 - - 10,380,001 1,862,381 2028-2032 7,219,998 790,182 - - 7,219,998 790,182 2033-2036 2,685,000 135,980 - - 2,685,000 135,980 $ 30,785,000 $ 5,713,740 $ 58,602 $ 366 $ 30,843,602 $ 5,714,106 The above general obligation bonds are direct obligations of the Town for which its full faith and credit are pledged and are payable from taxes levied on all taxable real property within the Town. Indebtedness -Component Units Bonds payable at December 31, 2017 is comprised of the following: Amount Outstanding Original at Year of Issue Final Interest December 31, Purpose Issue Amount Maturity Rates 2017 Hommocks Park Apartments Refunding Revenue Bonds, Series A 2015 $ 1,535,000 August, 2021 2.00% $ 1,040,000 Hommocks Park Apartments, Series B 2015 650,000 October, 2035 3.0% -3.50% 600,000 $ 1,640,000 47 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) The annual requirements to amortize the bonds outstanding as of December 31, 2017 including interest payments of$244,162 are as follows: Year Ending December 31, Principal Interest Total 2018 $ 280,000 $ 39,344 $ 319,344 2019 285,000 33,494 318,494 2020 290,000 27,494 317,494 2021 300,000 21,394 321,394 2022 30,000 15,094 45,094 2023-2027 155,000 61,967 216,967 2028-2032 180,000 37,175 217,175 2033-2035 120,000 8,200 128,200 $ 1,640,000 $ 244,162 $ 1,884,162 Interest expense of$42,811 was recorded for the Housing Authority. The revenue bonds are payable from the revenues received by the Housing Authority from the operation of the project. The Town has guaranteed payment of bond principal and interest. The bonds are subject to redemption prior to maturity, at the direction of the Housing Authority and with the consent of the Town, upon the occurrence of one or more of the following events. 1) The Project is damaged or destroyed to the extent that; a) it cannot be reasonably repaired within a six month period or b) the Housing Authority would thereby be prevented from carrying on the normal rental operations of the project, as it existed prior to the damage, for a period of six months or more. 2) Title to, or the use of or possession of, all or substantially the entire project is condemned or taken under the exercise of the power of eminent domain by any governmental authority. Under this extraordinary redemption provision, the bonds are subject to redemption as a whole at any time, but not in part, at a redemption price equal to 100% of the outstanding principal amount thereof without discount, together with accrued interest to the date of redemption. At the option of the Authority, the 2015 Series B bonds maturing on or after October 15, 2024 will be subject to redemption prior to maturity on any date on or after October 15, 2023. The bonds may be redeemed either as a whole or in part and if in part in order of maturity and in any amount within maturity, at the following redemption prices, plus accrued interest to the date of redemption. Redemption Period Redemption Price (Dates Inclusive) as a Percentage of Par October 15, 2024 100% 48 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Deferred Rent Payable The Authority leases the land on which the facility is located from the Town. The term of the lease is 30 years and six months which commenced in July 1995 and expires in December 2023. The rent was $1 for the period July 1, 1995 through June 30, 1996. Beginning July 1, 1996, the rent was increased to $125,000 per year and shall increase by 1% % on each July 1st, thereafter, during the term of the lease. For financial statement purposes, rent expense is being recognized on the straight-line basis over the life of the lease in accordance with GASB guidance. For the year ended December 31, 2017, rent expense of$138,195 was charged to operations. Deferred rent payable represents the difference between rent paid or accrued per the terms of the ground lease and what the rent would have been if recorded on the straight-line basis over the life of the lease. At December 31, 2017, deferred rent payable was $242,988. Advance Refunding During the 2017 fiscal year, the Town issued $7,040,000 in serial bonds with interest rates ranging from 2.00% to 2.35%, depending on maturity. The proceeds were used to advance refund $2,050,000 of outstanding 2007 various purposes serial bonds bearing interest at 4.00% to 4.25%, $2,470,000 of outstanding 2009 various purposes serial bonds bearing interest at 4.00% to 4.125%, $2,275,000 of outstanding 2010 various purposes serial bonds bearing interest at 2.5% to 3.50%. The net proceeds of $6,967,073 (including $51,989 of issuance premium and after $124,916 in underwriting fees and other issuance costs) were used to purchase U.S. Government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the bonds. As a result, the 2007, 2009 and 2010 serial bonds are considered defeased and the liability for those serial bonds has been removed from the Statement of Net Position. The reacquisition price exceeded the net carrying amount of the old debt by $172,073. This amount and the premium are being amortized over the remaining life of the refunded debt. The Town advance refunded the 2007, 2009 and 2010 serial bonds to reduce its total debt service payments over 13 years by $659,968 and to obtain a net present value economic gain of$549,827. As of December 31, 2017, $6,795,000 of bonds outstanding are considered defeased. Compensated Absences Pursuant to its collective bargaining agreements, the Town is required to pay its civil service employees for accumulated sick leave upon retirement. The contract provides for the payment of $75 per day for those days earned in excess of 165 days but not more than 240 days. Maximum number of days to be paid will be 75 days. The contract also provides for these employees to be compensated at their regular rate of pay for unused vacation time upon separation of employment up to a maximum of 30 days. No payment is provided for unused sick leave or vacation time for police and fire employees. The value of compensated absences has been reflected in the government-wide financial statements. 49 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Pension Plans New York State and Local Retirement System The Town participates in the New York State and Local Employees' Retirement System ("ERS") and the New York State and Local Police and Fire Retirement System ("PFRS") which are collectively referred to as the New York State and Local Retirement System ("System"). These are cost-sharing, multiple-employer defined benefit pension plans. The System provides retirement benefits as well as death and disability benefits. The net position of the System is held in the New York State Common Retirement Fund ("Fund"), which was established to hold all net assets and record changes in plan net position. The Comptroller of the State of New York serves as the trustee of the Fund and is the administrative head of the System. The Comptroller is an elected official determined in a direct statewide election and serves a four year term. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law ("NYSRSSL"). Once a public employer elects to participate in the System, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. The Town also participates in the Public Employees' Group Life Insurance Plan, which provides death benefits in the form of life insurance. The System is included in the State's financial report as a pension trust fund. That report, including information with regard to benefits provided may be found at www.osc.state.ny.us/retire/publications/index.php or obtained by writing to the New York State and Local Retirement System, 110 State Street, Albany, NY 12244. The System is noncontributory except for employees who joined after July 27, 1976, who contribute 3% of their salary for the first ten years of membership, and employees who joined on or after January 1, 2010, who generally contribute between 3% and 6% of their salary for their entire length of service. Under the authority of the NYSRSSL, the Comptroller annually certifies the actuarially determined rates expressly used in computing the employers' contributions based on salaries paid during the System's fiscal year ending March 31. The employer contribution rates for the plan's year ending in 2017 are as follows: Tier/Plan Rate ERS 2 751 19.8% 3 A14 16.0 4 A15 16.0 5 A15 13.1 6 A15 41J1 9.3 6 A15 41J2 9.3 PFRS 2 384D 24.1 5 384D * 19.5 5 384D 22.9 6 384D * 14.5 * Indicates employees are required to make a contribution for this PFRS tier/plan. 50 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) At December 31, 2017, the Town reported a liability of $2,153,827 for its proportionate share of the net pension liability of ERS and a liability of $3,164,863 for its proportionate share of the net pension liability of PFRS. The net pension liability was measured as of March 31, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Town's proportion of the net pension liability was based on a computation of the actuarially determined indexed present value of future compensation by employer relative to the total of all participating members. At March 31, 2017, the Town's proportion was 0.0229223% for ERS and 0.1526963% for PFRS. This was an increase .0016787% for ERS and a decrease of .0074215% for PFRS from their proportion measured as of March 31, 2016. For the year ended December 31, 2017, the Town recognized pension expense in the government-wide financial statements of $1,280,627 for ERS and $1,890,135 for PFRS. Pension expenditures of $957,538 for ERS and $1,393,230 for PFRS were recorded in the fund financial statements and were charged to the following funds: ERS PFRS General Fund $ 511,064 $ - Town Outside Villages 88,616 1,072,787 Highway 268,111 - Special Districts 89,747 320,443 Total $ 957.538 $ 1.393,230 At December 31, 2017, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ERS PFRS Deferred Deferred Deferred Deferred Outflows Inflows Outflows Inflows of Resources of Resources of Resources of Resources Differences between expected and actual experience $ 53,973 $ 327,071 $ 415,175 $ 546,818 Changes of assumptions 735,826 - 1,559,195 Net difference between projected and actual earnings on pension plan investments 430,207 - 472,668 - Changes in proportion and differences between Town contributions and proportionate share of contributions 164,307 21,972 212,797 138,444 Town contributions subsequent to the measurement date 713,770 - 1,052,615 - $ 2,098,083 $ 349,043 $ 3.712,450 $ 685,262 51 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) $713,770 and $1,052,615 reported as deferred outflows of resources related to ERS and PFRS, respectively, resulting from the Town's accrued contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended March 31, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ERS and PFRS will be recognized in pension expense as follows: Year Ended March 31, ERS PFRS 2018 $ 454,542 $ 656,097 2019 454,542 656,097 2020 387,777 620,818 2021 (261,591) (43,873) 2022 - 85,434 The total pension liability for the March 31, 2017 measurement date was determined by using an actuarial valuation as of April 1, 2016, with update procedures used to roll forward the total pension liabilities to March 31, 2017. Significant actuarial assumptions used in the April 1, 2016 valuation were as follows: Inflation 2.5% Salary scale 3.8% in ERS, 4.5% in PFRS indexed by service Investment rate of return 7.0% compounded annually, net of investment expenses, including inflation Cost of living adjustments 1.3% annually Annuitant mortality rates are based on the April 1, 2010 - March 31, 2015 System's experience with adjustments for mortality improvements based on Society of Actuaries Scale MP-2014. The actuarial assumptions used in the April 1, 2016 valuation are based on the results of an actuarial experience study for the period April 1, 2010 - March 31, 2015. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected return, net of investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized below. 52 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Long-Term Expected Target Real Rate Asset Type Allocation of Return Domestic Equity 36 % 4.55 % International Equity 14 6.35 Private Equity 10 7.75 Real Estate 10 5.80 Absolute Return Strategies 2 4.00 Opportunistic Portfolio 3 5.89 Real Assets 3 5.54 Bonds and Mortgages 17 1.31 Cash 1 (0.25) Inflation Indexed Bonds 4 1.50 100 % The real rate of return is net of the long-term inflation assumption of 2.5%. The discount rate used to calculate the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based upon those assumptions, the System's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The following presents the Town's proportionate share of the net pension liability calculated using the discount rate of 7.0%. as well as what the Town's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1 percentage point lower (6.0%) or 1 percentage point higher (8.0%) than the current rate: 1% Current 1% Decrease Assumption Increase (6.0%) (7.0%) (8.0%) Town's proportionate share of the ERS net pension liability (asset) $ 6,878.898 $ 2,153.827 $ (1,841,211) Town's proportionate share of the PFRS net pension liability (asset) $ 8,972,203 $ 3.164.863 $ (1.706.074) 53 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) The components of the collective net pension liability as of the March 31, 2017 measurement date were as follows: ERS PFRS Total Total pension liability $ 177,400,586,000 $ 31,670,483,000 $ 209,071,069,000 Fiduciary net position 168,004,363,000 29,597,831,000 197,602,194,000 Employers' net pension liability $ 9,396,223.000 $ 2,072,652,000 $ 11,468,875,000 Fiduciary net position as a percentage of total pension liability 94.7% 93.5% 94.5% Employer contributions to ERS and PFRS are paid annually and cover the period through the end of the System's fiscal year, which is March 31st. Retirement contributions as of December 31, 2017 represent the employer contribution for the period of April 1, 2017 through December 31, 2017 based on prior year ERS and PFRS wages multiplied by the employers' contribution rate, by tier. Retirement contributions to ERS and PFRS for the nine months ended December 31, 2017 were $713,770 and $1,052,615, respectively. Voluntary Defined Contribution Plan The Town can offer a defined contribution plan to all non-union employees hired on or after July 1, 2013 and earning at the annual full-time salary rate of $75,000 or more. The employee contribution is between 3% and 6% depending on salary and the Town will contribute 8%. Employer contributions vest after 366 days of service. No current employees participated in this program. Defined Benefit - Fire Service Awards Program The Town's financial statements are for the year ended December 31, 2017. The information contained in this note is based on information for the Town of Mamaroneck Fire District Length of Service Award Program for the program year ending on December 31, 2017, which is the most recent program year for which complete information is available. The Program is accounted for in the Town's financial statements within the Fire Protection District Fund. Plan description The Town of Mamaroneck Fire District established a defined benefit Service Award Program (referred to as a "LOSAP" - Length Of Service Award Program - under Section 457(e)(11) of the Internal Revenue Code) effective January 1, 1999 for the active volunteer firefighter members of the Town of Mamaroneck Fire District. This is a single employer defined benefit plan. The Program was established pursuant to Article 11-A of the New York State General Municipal Law. The Program provides municipally-funded deferred compensation to volunteer firefighters to facilitate the recruitment and retention of active volunteer firefighters. The Town of Mamaroneck Fire District is the Sponsor of the Program and the Program administrator. 54 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) An eligible Program Participant is defined to be an active volunteer firefighter who is at least 18 years of age and has earned one year of Service Award Program Service Credit. An active volunteer firefighter earns a year of Service Credit for each calendar year after the establishment of the Program in which he or she accumulates 50 points. Points are granted for the performance of certain firefighter activities in accordance with a system established by the Sponsor on the basis of a statutory list of activities and point values. A Participant may also receive Service Credit for five years of active volunteer firefighting service rendered prior to the establishment of the Program. Participants acquire a non-forfeitable right to be paid a Service Award after earning five years of Service Credit, becoming totally and permanently disabled, dying while an active volunteer or upon attaining the Program's Entitlement Age while an active volunteer. The Program's Entitlement Age is age 60. and is the age at which benefits begin to be paid to Participants. Benefits provided A Participant's Service Award benefit is paid as a ten-year certain and continuous monthly payment life annuity. The amount payable each month equals $20 multiplied by the total number of years of Service Credit earned by the Participant. The maximum number of years of Service Credit a Participant may earn under the Program is 40 years. Currently, there are no other forms of payment of a volunteer's earned Service Award under the Program. Except in the case of pre-Entitlement Age death or total and permanent disablement, a Participant's Service Award will not be paid until he or she attains the Entitlement Age. Volunteers who are active after attaining the Entitlement Age and who may have commenced receiving a Service Award have the opportunity to earn Service Credit and, thereby, increase their Service Award payments. The pre-Entitlement Age death and disability benefit is equal to the actuarial value of the Participant's earned Service Award at the time of death or disablement. Program does not provide extra line-of-duty death or disability benefits. All death and disability benefits are self-insured and are paid from the Program Trust Fund. Active Members 45 Vested-Terminated 19 Retired and Beneficiaries 1 Total 65 Contributions New York State General Municipal Law §219(d) requires the District to contribute an actuarially determined contribution on an annual basis. The actuarially determined contribution shall be appropriated annually by the District. Measurement of Total Pension Liability The total pension liability at the December 31, 2017 measurement date was determined using an actuarial valuation as of that date. 55 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Actuarial Assumptions. The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Cost Method: Entry Age Normal Inflation: 0.0% Salary Scale: None assumed Mortality rates: Non pre-retirement mortality; post retirement RP2000MF with improvement Discount Rate. The discount rate used to measure the total pension liability was 3.31%, which is based on the 20-year AA general obligation bond rate as of plan year end. Trust Assets. Although assets have been accumulated in an irrevocable trust such that the assets are dedicated to providing pensions to plan members in accordance with benefit terms, the trust assets are not legally protected from creditors of the District. As such, the trust assets do not meet the criteria in paragraph 4 of GASB Statement No. 73. The trust assets are recorded in the General fund as investments and as a component of Restricted fund balance. Changes in the Total Pension Liability Balance as of 1/1/17 measurement date $ 1,369,699 Service cost 59,638 Interest 45,337 Changes in assumptions or other inputs 172,911 Benefit payments (5,171) Balance as of 12/31/17 measurement date $ 1,642,414 Sensitivity of the Total Pension Liability to changes in the discount rate. The following presents the total pension liability of the District as of the December 31, 2017 measurement date, calculated using the discount rate of 3.31 percent, as well as what the District's total pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (2.31 percent) or 1-percentage point higher (4.31 percent) than the current rate: 1% Current 1% Decrease Assumption Increase 2.31% 3.31% 4.31% Total Pension Liability $ 1,756,638 $ 1,642,414 $ 1,525,647 56 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2017, the District recognized pension expense of $122,266. At December 31, 2017, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Changes of assumptions or other inputs $ 155,620 $ - Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31, 2018 $ 17,291 2019 17,291 2020 17,291 2021 17,291 2022 17,291 Thereafter 69,165 Other Post Employment Benefit Obligations Payable In addition to providing pension benefits, the Town provides certain health care benefits for retired employees through a single employer defined benefit plan. The various collective bargaining agreements stipulate the employees covered and the percentage of contribution. Contributions by the Town may vary according to length of service. The cost of providing other post employment benefit obligations payable is shared between the Town and the retired employees. Substantially all of the Town's employees may become eligible for those benefits if they reach normal retirement age while working for the Town. The cost of other post employment benefit obligations payable is recognized as an expenditure as claims are paid. The Town's annual other post employment benefit ("OPEB") cost (expense) is calculated based on the annual required contribution, ("ARC"), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. GASB Statement No. 45 establishes standards for the measurement, recognition and display of the expenses and liabilities for retirees' medical insurance. As a result, reporting of expenses and liabilities will no longer be accounted for under the "pay-as-you-go" approach. Instead of expensing the current year premiums paid, a per capita claims cost will be determined, which will be used to determine a "normal cost", an "actuarial accrued liability", and ultimately the ARC. 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 over a period not to exceed thirty years. 57 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. These amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Calculations are based on the OPEB benefits provided under the terms of the substantive plan in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. In addition, the assumptions and projections utilized do not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. The actuarial calculations of the OPEB plan reflect a long-term perspective. The Town is required to accrue on the government-wide financial statements the amounts necessary to finance the plan as actuarially determined, which is equal to the balance not paid by plan members. Funding for the Plan has been established on a pay-as-you-go basis. The assumed increase in postretirement benefits is 8.0% for the first year, decreases by .5% per year through year 7 to 5%, and then continues at 5% thereafter. The amortization basis is the level percentage of payroll method with an open amortization approach. The actuarial assumptions included a 4.5% investment rate of return and 3% inflation rate. The unit credit method was used to determine the actuarial value of the assets of the OPEB plan, however, the Town currently has no assets set aside for the purpose of paying post employment benefits. The actuarial cost method utilized was the unit credit method. The number of participants as of January 1, 2017 was as follows: Active Employees 135 Retired Employees 118 Total 253 58 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Amortization Component: Actuarial Accrued Liability as of January 1, 2017 $ 70,340,000 Assets at Market Value - Unfunded Actuarial Accrued Liability ("UAAL") $ 70,340,000 Funded Ratio 0.00% Covered Payroll (Active plan members) $ 12,290,000 UAAL as a Percentage of Covered Payroll 572.34% Annual Required Contribution $ 6,320,000 Interest on Net OPEB Obligation 1,200,000 Adjustment to Annual Required Contribution (1,560,000) Annual OPEB Cost 5,960,000 Contributions Made (1,980,000) Increase in Net OPEB Obligation 3,980,000 Net OPEB Obligation - Beginning of Year 26,660,000 Net OPEB Obligation - End of Year $ 30,640,000 The Town's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and two preceding years are as follows: Fiscal Percentage of Year Ended Annual Annual OPEB Net OPEB December 31, OPEB Cost Cost Contributed Obligation 2017 $ 5,960,000 33.22 % $ 30,640,000 2016 5,790,000 31.61 26,660,000 2015 5,080,000 31.50 22,700,000 The schedule of funding progress for the OPEB plan immediately following the notes to the financial statements presents multi-year trend information about whether the actuarial value of the plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits over time. 59 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) G. Revenues and Expenditures Interfund Transfers Interfund transfers are defined as the flow of assets, such as cash or goods and services, without the equivalent flow of assets in return. The interfund transfers reflected below have been reflected as transfers: Transfers In Town Outside Special Capital Non-Major General Villages Highway Districts Projects Governmental Transfers Out Fund Fund Fund Fund Fund Funds Total General Fund $ - $ - $ - $ - $ 660,358 $ 1,027,381 $ 1,687,739 Town Outside Villages Fund 50,000 - - - 164,755 172,211 386,966 Highway Fund - - - - 531,477 966,293 1,497,770 Special Districts Fund - - - - 749,118 1,013,823 1,762,941 Capital Projects Fund 25,087 17,621 15,138 - - 82,901 140,747 Non-Major Governmental Funds 57,231 136,658 26,800 69,150 21,403 - 311,242 $ 132,318 $ 154,279 $ 41,938 $ 69,150 $ 2.127,111 $ 3,262,609 $ 5,787,405 Transfers are used to 1) move funds from the fund with collection authorization to the funds where additional amounts are needed and 2) to move amounts earmarked in the operating funds to fulfill commitments for Capital Projects and Debt Service funds expenditures. H. Net Position The components of net position are detailed below: Net investment in capital assets -the component of net position that reports the difference between capital assets less both the accumulated depreciation and the outstanding balance of debt, excluding unexpended proceeds, that is directly attributable to the acquisition, construction or improvement of those assets. Restricted for Future Capital Projects - the component of net position that reports the amounts restricted for future capital projects. Restricted for Debt Service - the component of net position that reports the difference between assets and liabilities of the Debt Service Fund with constraints placed on their use by Local Finance Law. Restricted for Special Districts Funds, Section 8 Housing Assistance and Tri-Municipal Cable TV- the component of net position that represents funds restricted for specific purposes under New York State Law or by external parties and/or statutes. Restricted for Trusts - the component of net position that has been established to set aside funds in accordance with the terms of the grants. Unrestricted - all other amounts that do not meet the definition of "restricted" or "net investment in capital assets". 60 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) I. Fund Balances 2017 2016 To Section 8 Town Section 6 aneide Special Housing Capital Non-Major Outeide Spacial Howling Caplet Non-Major General Villages HgI ay Districts Assistance Projects Governmental General Villages H¢may District. Ambience Projects Governmental Fund Fund Fund Fund Fund Fund Funds Total Fund Fund Fund Fund Fund Fund Funds Tots) Nospe.beae Prepaidegnditres $ 339,732 $ 654,792 $ 473,007 $ 450,945 $ - $ - $ - $ 1,918479 $ 213,450 $ 388,973 $ 132,800 $ 210,617 $ $ - $ - $ 945,840 Restricted Capital projects - - - - - 1,800,760 - 1,800,760 - - - - - 5,844,427' - 5,844,427 Futse capital projects 125,000 - - - - - - 125,000 125,000 - - - - - - 125,000 Penton benefit. - - - 1,132,694 - - - 1,132,694 - - - 1,051,225 - - - 1,051,225 Truce - - - - - - 250,371 250,371 - - - - - - 236,342 236,342 Debt nation - - - - _ - 637,4% 637,496 - - - - - - 777,463 777,463 Total Restricted 125,000 - - 1,132,694 - 1,800,760 887,867 3,946,321 125,000 - - 1,051,225 - 5,844,427 1,013,805 8,034,457 Assigned Purchases on order: General gnernnenl Nippon 10,825 4,609 - - - - - 15,434 5,765 20,809 - - - - - 26,574 Pubic safety - 3,132 - - - - - 3,132 - - - - - - - - Transportation - - 39,665 - - - - 39,665 - - 2,499 - - - - 2,499 Economo Opprlu ity and development 16,195 - - - - - - 16,195 16,194 - - - - - - 16,194 Cunene and recreation - - - - - - - - 11,995 - - - - - - 11,995 a) Hone and community unions 900 200 - - - - 1,100 - 5,000 - - - - - 5,000 27,920 7,941 39,665 - - - - 75,526 33,954 25,809 2,499 - - - - 62,262 Subsequent year's rpandltres 936,725 350,000 65,000 106,000 - - 584,170 2,041,895 854,022 288,990 40,600 27,785 - - 505,950 1,717,347 Major fund - 3,599,066 471,476 3,499,066 472,180 - - 8,041,808 - 3,460,157 1,067,878 3,637,044 712,378 - - 8,877,457 Nn-Major Gmernnentd funds- Tri-MunIclpal Cobb T.V. - - - - - - 1,364,438 1,364,438 - - - - - - 1,388,396 1,388,396 Toth Assigned 964,645 3,957,007 576,141 3,605,086 472,180 - 1,948,608 11,523,667 887,976 3,774,956 1,110,977 3,664,629 712,378 - 1,894,346 12,045,462 1hasbged 7,930,479 - - - - - - 7,930,479 7,065,612 - - - - - - 7,065,612 Total Fund Balance. $ 9,359,856 $ 4,811,789 $ 1,049,148 ..5_.. :1L_8 5, 72847 E2,180 6 1,800,760 $ 2,836.475 $ 25,318,946 8 8,292,038 L 4,163,929 $ 1,243,777 _5_ 9....,___26 4, 671 1...M.,272_35 S ,844,427 $ 2,908,151 .8._a3,1:91 371 Town of Mamaroneck, New York Notes to Financial Statements (Continued) December 31, 2017 Note 3 - Detailed Notes on All Funds (Continued) Certain elements of fund balance are described above. Those additional elements, which are not reflected in the Statement of Net Position but are reported in the governmental funds balance sheet are described below. Prepaid Expenditures has been established to account for retirement and health insurance payments made in advance. The amount is classified as nonspendable to indicate that funds are not "available" for appropriation or expenditure even though they are a component of current assets. Restricted for Pension Benefits represents funds restricted for specific purposes under New York State law or by external parties and/or statutes. Purchases on order are assigned and represent the Town's intention to honor the contracts in process at year-end. The subsequent year's appropriations will be amended to provide authority to complete the transactions. Subsequent year's expenditures represent that at December 31, 2017, the Town Board has assigned the above amounts to be appropriated for the ensuing year's budget. Unassigned fund balance in the General Fund represents amounts not classified as nonspendable, restricted, committed or assigned. Note 4 - Summary Disclosure of Significant Contingencies A. Litigation The Town, in common with other municipalities, receives numerous notices of claims for money damages arising from false arrest, property damage or personal injury. Of the claims currently pending, none are expected to have a material effect on the financial position of the Town if adversely settled. Westchester Joint Water Works ("WJWW') a joint venture of the Town as reported in note 3 is currently being fined by the New York State Health Department for not meeting a Supreme Court of the State of New York ruling requiring the construction of a filtration plant by December 3, 2008. These fines amounted to $44,578.750 as of December 31, 2017 and continue to accrue at $13,750 a day. The Town' share of these fines is approximately $8,367,677 or 18.8% of the total. Management of the WJWW has indicated that the State is holding in abeyance the imposition of these fines although they continue to be accrued by the WJWW. The Town has not accrued their share in the Special District Fund — Water District as the expectation of management is that the fines will be suspended or replaced with a negotiated settlement as the WJWW has proposed multiple acceptable alternatives to the filtration plant. The Town is also defendant in numerous tax certiorari proceedings, the results of which generally require tax refunds on the part of the Town. The amount of possible refunds cannot be determined at the present time and any refunds resulting from adverse settlements will be funded in the year in which the payments are made. 62 Town of Mamaroneck, New York Notes to Financial Statements (Concluded) December 31, 2017 Note 4 - Summary Disclosure of Significant Contingencies (Continued) B. Risk Management The primary government purchases various conventional liability and workers' compensation insurance policies to protect against potential losses. The general liability policy provides coverage up to $3 million. In addition. there is a public officials liability policy providing coverage of$2 million. Finally there is an excess liability policy for an additional $40 million. The Town's workers' compensation policy provides coverage at statutory levels. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. The Housing Authority purchases various conventional insurance policies to reduce its exposure to loss. The Housing Authority maintains a general liability policy with coverage up to $5 million. Settled claims resulting from these risks have not exceeded commercial coverage in any of the past three fiscal years. C. Contingencies The Town participates in various Federal grant programs. These programs are subject to program compliance audits pursuant to the Single Audit Act. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the Town anticipates such amounts, if any, to be immaterial. 63 Town of Mamaroneck, New York Required Supplementary Information Schedule of Changes in the District's Total Pension Liability Last Ten Fiscal Years (1) * 2017 Total Pension Liability Service Cost $ 59,638 Interest 45,337 Changes in assumptions or other inputs 172,911 Differences between expected and actual experience - Benefit payments (5,171) Net Change in total pension liability 272,715 Total pension liability — beginning 1,369,699 Total pension liability — ending 1,642,414 Covered payroll N/A Total pension liability as a percentage of covered payroll 0% (1) Schedule is intended to show information for 10 years. Additional years will be displayed as they become available Notes to Required Supplementary information Changes of assumptions or other inputs. The discount rate used to measure the total pension liability December 31, 2016: 2.31% December 31, 2017: 3.31% Trust Assets. There are no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 73 to pay related benefits. See independent auditors' report. 64 Town of Mamaroneck, New York Required Supplementary Information - Schedule of Funding Progress Other Post Employment Benefits Last Three Fiscal Years Unfunded Actuarial Unfunded Liability as a Actuarial Percentage Valuation Value of Accrued Accrued Funded Covered of Covered Date Assets Liability Liability Ratio Payroll Payroll January 1, 2017 $ - $ 70,340,000 $ 70,340,000 - % $ 12,290,000 572.34 °YO January 1, 2016 - 67,240,000 67,240,000 - 11,970,000 561.74 January 1, 2015 - 60,640,000 60,640,000 - 12,070,000 502.40 See independent auditors' report. 65 Town of Mamaroneck, New York Required Supplementary Information - Schedule of the Town's Proportionate Share of the Net Pension Liability New York State and Local Employees' Retirement System Last Ten Fiscal Years (1) 2017 2016 (2) 2015 Town's proportion of the net pension liability 0.0229223% 0.0212436% 0.0225153% Town's proportionate share of the net pension liability $ 2,153,827 $ 3,409,658 $ 760,623 Town's covered-employee payroll $ 6,193,460 $ 6,044,712 $ 6,133,937 Town's proportionate share of the net pension liability as a percentage of its covered payroll 34.78% 56.41% 12.40% Plan fiduciary net position as a percentage of the total pension liability 94.70% 90.70% 97.90% Note- The amounts presented for each fiscal year were determined as of the March 31 measurement date within the current fiscal year. (1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions. (2) The discount rate used to calculate the total pension liability was decreased from 7.5% to 7.0% effective with the March 31, 2016 measurement date. I See independent auditors' report. 66 Town of Mamaroneck, New York Required Supplementary Information - Schedule of Contributions New York State and Local Employees' Retirement System Last Ten Fiscal Years (1) 2017 2016 2015 Contractually required contribution $ 951,693 $ 975,073 $ 921,095 Contributions in relation to the contractually required contribution (951,693) (975,073) (921,095) Contribution excess $ - $ - $ - Town's covered payroll $ 6,366,881 $ 6,296,849 $ 6,216,275 Contributions as a percentage of covered payroll 14.95% 15.49% 14.82% (1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions. See independent auditors' report. 67 Town of Mamaroneck, New York Required Supplementary Information - Schedule of the Town's Proportionate Share of the Net Pension Liability New York State and Local Police and Fire Retirement System Last Ten Fiscal Years (1) 2017 2016 (2) 2015 Town's proportion of the net pension liability 0.1526963% 0.1601178% 0.1617364% Town's proportionate share of the net pension liability $ 3,164,863 $ 4,740,748 $ 445,195 Town's covered payroll $ 6,168,882 $ 6,036,891 $ 6,198,180 Town's proportionate share of the net pension liability as a percentage of its covered payroll 51.30% 78.53% 7.18% Plan fiduciary net position as a percentage of the total pension liability 93.50% 90.20% 99.00% Note - The amounts presented for each fiscal year were determined as of the March 31 measurement date within the current fiscal year. (1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions. (2) The discount rate used to calculate the total pension liability was decreased from 7.5% to 7.0% effective with the March 31, 2016 measurement date. See independent auditors' report. 68 Town of Mamaroneck, New York Required Supplementary Information - Schedule of Contributions New York State and Local Police and Fire Retirement System Last Ten Fiscal Years (1) 2017 2016 2015 Contractually required contribution $ 1,403,486 $ 1,362,460 $ 1,105,220 Contributions in relation to the contractually required contribution (1,403,486) (1,362,460) (1,105,220) - Contribution excess $ - $ - $ - Town's covered payroll $ 6,425,121 $ 6,105,861 $ 6,230,182 Contributions as a percentage of covered payroll 21.84% 22.31% 17.74% (1) Data not available prior to fiscal year 2015 implementation of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions. See independent auditors' report. 69 Town of Mamaroneck, New York General Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 56,114,044 $ 12,465,669 Investments 2,005,905 - Taxes receivable Town and County taxes 197,146 331,957 School districts taxes 23,778,963 49,611,845 Tax liens 1,790,544 2,168,070 Property acquired for taxes 31,321 31,321 25,797,974 52,143,193 Allowance for uncollectible amounts (1,351,589) (1,667,663) 24,446,385 50,475,530 Other receivables Accounts 451,968 323,148 Due from other governments 121,794 8,621 State and Federal aid 18,281 28,658 Due from other funds 434,575 171,629 1,026,618 532,056 Prepaid expenditures 339,732 213,450 Total Assets $ 83,932,684 $ 63,686,705 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities Accounts payable $ 451,492 $ 226,599 Accrued liabilities 40,327 30,616 Due to school districts 55,384,071 54,306,843 Due to other funds 163,009 5,625 Due to other governments 10 10 Overpayments 254,060 379 Unearned revenues 3,098 1,753 Total Liabilities 56,296,067 54,571,825 Deferred inflows of resources Deferred tax revenues 581,949 822,842 Taxes collected in advance 17,694,812 - Total Deferred Inflows of Resources 18,276,761 822,842 Total Liabilities and Deferred Inflows of Resources 74,572,828 55,394,667 Fund balance Nonspendable 339,732 213,450 Restricted 125,000 125,000 Assigned 964,645 887,976 Unassigned 7,930,479 7,065,612 Total Fund Balance 9,359,856 8,292,038 Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 83,932,684 $ 63,686,705 See independent auditors' report. 70 Town of Mamaroneck, New York General Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual Years Ended December 31, 2017 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 3,838,591 $ 3,838,591 $ 4,361,569 $ 522,978 Other tax items 607,000 607,000 1,078,925 471,925 Departmental income 3,561,375 3,561,375 3,718,585 157,210 Use of money and property 270,000 270,000 322,362 52,362 Licenses and permits 35,250 35,250 74,730 39,480 Fines and forfeitures 300,000 300,000 291,460 (8,540) Sale of property and compensation for loss - - 30,493 30,493 State aid 1,818,725 1,830,423 1,968,777 138,354 Federal aid 67,740 67,740 52,711 (15,029) Miscellaneous 36,700 36,700 31,140 (5,560) - Total Revenues 10,535,381 10,547,079 11,930,752 1,383,673 EXPENDITURES Current General government support 3,915,102 4,019,278 4,467,232 (447,954) Health 370,000 370,000 424,619 (54,619) Transportation 143,837 143,837 141,650 2,187 Economic opportunity and development 505,688 523,688 448,859 74,829 Culture and recreation 2,616,084 2,616,084 2,574,305 41,779 Home and community services 511,693 520,924 462,843 58,081 Employee benefits 2,187,750 2,187,750 2,104,891 82,859 Debt service Interest - - - - Total Expenditures 10,250,154 10,381,561 10,624,399 (242,838) Excess of Revenues Over Expenditures 285,227 165,518 1,306,353 1,140,835 OTHER FINANCING SOURCES (USES) Sale of property - - 1,316,886 1,316,886 Transfers in 93,000 130,731 132,318 1,587 Transfers out (1,266,203) (1,529,403) (1,687,739) (158,336) Total Other Financing Uses (1,173,203) (1,398,672) (238,535) 1,160,137 Net Change in Fund Balance (887,976) (1,233,154) 1,067,818 2,300,972 FUND BALANCE Beginning of Year 887,976 1,233,154 8,292,038 7,058,884 End of Year $ - $ - $ 9,359,856 $ 9,359,856 See independent auditors'report. 71 2016 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 3,847,133 $ 3,847,133 $ 3,643,083 $ (204,050) 605,000 605,000 1,000,533 395,533 3,396,434 3,396,434 3,597,718 201,284 263,000 263,000 313,684 50,684 35,500 35,500 72,710 37,210 270,000 270,000 320,723 50,723 - 13,513 13,513 1,573,725 1,578,125 2,273,584 695,459 66,100 66,100 77,003 10,903 36,700 36,700 68,647 31,947 10,093,592 10,097,992 11,381,198 1,283,206 3,872,077 3,876,477 4,040,191 (163,714) 350,000 350,000 373,063 (23,063) 140,360 140,360 135,000 5,360 500,760 500,760 452,103 48,657 2,473,359 2,473,509 2,395,766 77,743 472,044 480,144 433,957 46,187 1,968,207 1,968,207 1,979,948 (11,741) 19,350 19,350 - 19,350 9,796,157 9,808,807 9,810,028 (1,221) 297,435 289,185 1,571,170 1,281,985 - - 145,295 145,295 50,000 59,000 59,000 - (936,612) (1,108,520) (1,108,520) - (886,612) (1,049,520) (904,225) 145,295 (589,177) (760,335) 666,945 1,427,280 589,177 760,335 7,625,093 6,864,758 $ - $ - $ 8,292,038 $ 8,292,038 72 Town of Mamaroneck, New York General Fund Schedule of Revenues and Other Financing Sources Compared to Budget Year Ended December 31, 2017 (With Comparative Actuals for 2016) Variance with Final Budget Original Final Positive 2016 Budget Budget Actual (Negative) Actual REAL PROPERTY TAXES $ 3,838,591 $ 3,838,591 $ 4,361,569 $ 522,978 $ 3,643,083 OTHER TAX ITEMS Payments in lieu of taxes - - 1,348 1,348 1,264 Interest and penalties on real property taxes 600,000 600,000 1,067,806 467,806 984,323 Utilities gross receipts taxes 7,000 7,000 9,771 2,771 14,946 607,000 607,000 1,078,925 471,925 1,000,533 DEPARTMENTAL INCOME Parking fees 335,750 335,750 364,493 28,743 349,331 W Recreation fees 827,000 827,000 956,994 129,994 861,162 Clerk fees 8,000 8,000 6,489 (1,511) 9,473 Election services 1,000 1,000 808 (192) 1,212 Senior center dues 14,500 14,500 25,145 10,645 22,192 Pool charges 560,000 560,000 637,717 77,717 613,067 Ice rink charges 1,146,000 1,146,000 1,117,619 (28,381) 1,170,216 Section 8 Housing Assistance Fund reimbursement 669,125 669,125 609,320 (59,805) 571,065 3,561,375 3,561,375 3,718,585 157,210 3,597,718 USE OF MONEY AND PROPERTY Earnings on investments 20,000 20,000 36,289 16,289 27,642 Rents 250,000 250,000 286,073 36,073 286,042 270,000 270,000 322,362 52,362 313,684 LICENSES AND PERMITS 35,250 35,250 74,730 39,480 72,710 FINES AND FORFEITURES Fines and forfeited bail 300,000 300,000 291,460 (8,540) 320,723 I SALE OF PROPERTY AND COMPENSATION FOR LOSS Insurance recoveries - - 30,493 30,493 13,513 STATE AID Per capita 140,000 140,000 142,194 2,194 142,194 Mortgage tax 1,300,000 1,300,000 1,382,744 82,744 1,736,581 Youth programs 2,500 2,500 2,500 - 2,957 NGC-Mental Health Board 370,000 370,000 424,619 54,619 373,063 Other 6,225 17,923 16,720 (1,203) 18,789 1,818,725 1,830,423 1,968,777 138,354 2,273,584 FEDERAL AID Programs for the aging 67,740 67,740 52,711 (15,029) 77,003 MISCELLANEOUS Refund of prior year's expenditures - - 225 225 - Gifts and donations 36,700 36,700 27,241 (9,459) 38,857 Unclassified - - 3,674 3,674 29,790 36,700 36,700 31,140 (5,560) 68,647 TOTAL REVENUES 10,535,381 10,547,079 11,930,752 1,383,673 11,381,198 OTHER FINANCING SOURCES Sale of property - - 1,316,886 1,316,886 145,295 Transfers in Town Outside Villages Fund 50,000 50,000 50,000 - 50,000 Capital Projects Fund - - 25,087 25,087 - Debt Service Fund 43,000 43,000 43,000 - - Section 8 Housing Assistance Fund - 23,500 - (23,500) - Special Purpose Fund - 14,231 14,231 - 9,000 TOTAL OTHER FINANCING SOURCES 93,000 130,731 1,449,204 1,318,473 204,295 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 10,628,381 $ 10,677,810 $ 13,379,956 $ 2,702,146 $ 11,585,493 See independent auditors' report. Town of Mamaroneck, New York General Fund Schedule of Expenditures and Other Financing Uses Compared to Budget Year Ended December 31, 2017 (With Comparative Actuals for 2016) Variance with Final Budget Original Final Positive 2016 Budget Budget Actual (Negative) Actual GENERAL GOVERNMENT SUPPORT Town Board $ 29,428 $ 29,428 $ 28,938 $ 490 $ 29,603 Town Justice 366,453 378,151 367,301 10,850 375,106 Supervisor 88,039 88,039 87,332 707 86,275 Town Administrator 329,044 329,044 306,287 22,757 334,818 Finance 562,202 562,202 571,861 (9,659) 548,072 Audit 80,100 80,100 77,675 2,425 74,038 Assessor 539,611 539,611 600,735 (61,124) 641,988 Town Clerk 243,067 243,067 228,301 14,766 212,740 ,iTown Attorney 244,200 244,200 255,324 (11,124) 285,544 crl Personnel 165,460 165,460 191,415 (25,955) 121,838 Engineer 129,270 129,270 55,676 73,594 125,945 Elections 44,660 44,660 44,660 - 43,360 Town Center 361,146 361,146 358,021 3,125 355,803 Central communications 44,500 44,500 74,235 (29,735) 57,836 Central services 124,765 124,765 121,194 3,571 86,165 Central data processing 255,065 347,543 335,857 11,686 404,936 Municipal association dues 4,000 4,000 3,550 450 3,350 Taxes on Town property 83,130 83,130 148,811 (65,681) 88,392 Judgments and claims 50,000 50,000 51,801 (1,801) 55,827 Unallocated insurance 87,225 87,225 100,056 (12,831) 94,144 Metropolitan commuter transportation mobility tax 15,000 15,000 14,994 6 14,411 Credit card fees 50,000 50,000 443,208 (393,208) - Contingency 18,737 18,737 - 18,737 - 3,915,102 4,019,278 4,467,232 (447,954) 4,040,191 HEALTH Narcotics Guidance Council 370,000 370,000 424,619 (54,619) 373,063 TRANSPORTATION Superintendent of Highways 124,837 124,837 123,674 1,163 121,314 Off-street parking 19,000 19,000 17,976 1,024 13,686 143,837 143,837 141,650 2,187 135,000 ECONOMIC OPPORTUNITY AND DEVELOPMENT Programs for the Aging 490,688 508,688 433,859 74,829 437,103 Community Action Program 15,000 15,000 15,000 - 15,000 505,688 523,688 448,859 74,829 452,103 CULTURE AND RECREATION General recreation 412,473 412,473 404,522 7,951 407,888 Ice rink 623,903 623,903 601,714 22,189 594,414 Youth programs 662,758 662,358 618,224 44,134 524,507 Pool 784,541 784,541 778,724 5,817 754,574 Adult recreation 103,109 103,509 98,763 4,746 90,518 Special recreation facility 29,300 29,300 72,358 (43,058) 23,865 2,616,084 2,616,084 2,574,305 41,779 2,395,766 rn HOME AND COMMUNITY SERVICES Community beautification 25,200 34,431 25,811 8,620 23,330 Cemeteries 16,000 16,000 10,200 5,800 11,400 Human rights commission 1,000 1,000 - 1,000 700 Rent Subsidy Program 469,493 469,493 426,832 42,661 398,527 511,693 520,924 462,843 58,081 433,957 EMPLOYEE BENEFITS State retirement 515,000 515,000 511,064 3,936 516,088 Social security 340,000 340,000 330,467 9,533 318,872 Workers' compensation benefits 125,000 125,000 123,892 1,108 90,560 Life insurance 5,500 5,500 5,508 (8) 5,151 Hospital and medical insurance 1,188,000 1,188,000 1,126,060 61,940 1,027,106 Disability insurance 6,250 6,250 6,087 163 5,789 Unemployment benefits 8,000 8,000 1,813 6,187 16,382 2,187,750 2,187,750 2,104,891 82,859 1,979,948 TOTAL EXPENDITURES 10,250,154 10,381,561 10,624,399 (242,838) 9,810,028 (Continued) Town of Mamaroneck, New York General Fund Schedule of Expenditures and Other Financing Uses Compared to Budget (Continued) Year Ended December 31, 2017 (With Comparative Actuals for 2016) Variance with Final Budget Original Final Positive 2016 Budget Budget Actual (Negative) Actual OTHER FINANCING USES Transfers out Debt Service Fund $ 1,027,381 $ 1,027,381 $ 1,027,381 $ - $ 806,612 Capital Projects Fund 238,822 502,022 660,358 (158,336) 301,908 TOTAL OTHER FINANCING USES 1,266,203 1,529,403 1,687,739 (158,336) 1,108,520 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 11,516,357 $ 11,910,964 $ 12,312,138 $ (401,174) $ 10,918,548 v v See independent auditors' report. Town of Mamaroneck, New York Town Outside Villages Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 3,651,076 $ 3,496,158 Receivables Accounts 39,087 15,650 Due from other governments 469,417 458,928 Due from other funds 34,621 - 543,125 474,578 Prepaid expenditures 654,792 388,973 Total Assets $ 4,848,993 $ 4,359,709 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 210,010 $ 189,418 Due to other funds 27,184 6,362 Total Liabilities 237,194 195,780 Fund balance Nonspendable 654,792 388,973 Assigned 3,957,007 3,774,956 Total Fund Balance 4,611,799 4,163,929 Total Liabilities and Fund Balance $ 4,848,993 $ 4,359,709 See independent auditors' report. 78 Town of Mamaroneck, New York Town Outside Villages Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual Years Ended December 31, 2017 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 9,585,429 $ 9,585,429 $ 9,569,007 $ (16,422) Non-property taxes 1,700,000 1,700,000 1,827,391 127,391 Departmental income 173,100 173,100 225,694 52,594 Licenses and permits 478,000 478,000 779,363 301,363 Fines and forfeitures 7,000 7,000 6,575 (425) Sale of property and compensation for loss - - 1,200 1,200 State aid - - - - Federal aid 1,500 1,500 - (1,500) Miscellaneous 3,000 3,000 7,991 4,991 Total Revenues 11,948,029 11,948,029 12,417,221 469,192 EXPENDITURES Current General government support 477,565 511,075 446,221 64,854 Public safety 5,920,889 5,920,889 5,845,944 74,945 Health 59,100 59,100 59,100 - Transportation 23,050 23,050 6,321 16,729 Culture and recreation 1,342,650 1,342,650 1,341,083 1,567 Home and community services 214,673 214,673 219,351 (4,678) Employee benefits 3,988,200 4,108,200 3,819,224 288,976 Debt service Interest - - - - Total Expenditures 12,026,127 12,179,637 11,737,244 442,393 Excess (Deficiency) of Rev- 1 enues Over Expenditures (78,098) (231,608) 679,977 911,585 OTHER FINANCING SOURCES (USES) Insurance recoveries - - 580 580 Transfers in 136,000 136,000 154,279 18,279 Transfers out (372,701) (386,966) (386,966) - Total Other Financing Uses (236,701) (250,966) (232,107) 18,859 Net Change in Fund Balance (314,799) (482,574) 447,870 930,444 FUND BALANCE Beginning of Year 314,799 482,574 4,163,929 3,681,355 End of Year $ - $ - $ 4,611,799 $ 4,611,799 See independent auditors' report. 79 2016 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 9,146,718 $ 9,146,718 $ 9,112,943 $ (33,775) 1,600,000 1,600,000 1,748,807 148,807 156,000 156,000 202,341 46,341 420,000 420,000 822,790 402,790 7,000 7,000 9,035 2,035 2,500 2,500 1,200 1,200 2,000 800 3,400 3,400 48,410 45,010 11,334,318 11,334,318 11,948,826 614,508 453,600 481,130 514,234 (33,104) 5,624,350 5,628,349 5,585,351 42,998 56,100 56,100 56,100 - 19,150 19,150 9,977 9,173 1,296,476 1,296,476 1,296,332 144 229,804 229,805 192,417 37,388 3,619,696 3,619,696 3,643,360 (23,664) 1,150 1,150 - 1,150 11,300,326 11,331,856 11,297,771 34,085 33,992 2,462 651,055 648,593 - - 2,047 2,047 119,000 119,000 119,658 658 (265,361) (336,331) (336,331) - (146,361) (217,331) (214,626) 2,705 (112,369) (214,869) 436,429 651,298 112,369 214,869 3,727,500 3,512,631 $ - $ - $ 4,163,929 $ 4,163,929 80 Town of Mamaroneck, New York Town Outside Villages Fund Schedule of Revenues and Other Financing Sources Compared to Budget Year Ended December 31, 2017 (With Comparative Actuals for 2016) Variance with Final Budget Original Final Positive 2016 Budget Budget Actual (Negative) Actual REAL PROPERTY TAXES $ 9,585,429 $ 9,585,429 $ 9,569,007 $ (16,422) $ 9,112,943 NON-PROPERTY TAXES Non-property tax distribution from County 1,700,000 1,700,000 1,827,391 127,391 1,748,807 DEPARTMENTAL INCOME Police fees 300 300 291 (9) 277 Zoning fees 7,000 7,000 17,200 10,200 15,130 co Planning Board fees 3,000 3,000 11,535 8,535 2,920 Emergency tenants protection 2,500 2,500 2,360 (140) 2,450 Parking fees 128,300 128,300 155,443 27,143 147,098 Recreation fees 32,000 32,000 38,865 6,865 34,466 173,100 173,100 225,694 52,594 202,341 LICENSES AND PERMITS Building permits 375,000 375,000 581,835 206,835 650,559 Alarm licenses 33,000 33,000 39,240 6,240 38,600 Other licenses 70,000 70,000 158,288 88,288 133,631 478,000 478,000 779,363 301,363 822,790 FINES AND FORFEITURES False alarms 7,000 7,000 6,575 (425) 9,035 SALE OF PROPERTY AND COMPENSATION FOR LOSS Sale of property - - 1,200 1,200 - STATE AID New York State energy grant - - - - 2,500 FEDERAL AID Transportation 1,500 1,500 - (1,500) 2,000 MISCELLANEOUS Unclassified 3,000 3,000 7,991 4,991 48,410 TOTAL REVENUES 11,948,029 11,948,029 12,417,221 469,192 11,948,826 OTHER FINANCING SOURCES Insurance recoveries - - 580 580 2,047 Transfers in Capital Projects Fund - - 17,621 17,621 - Debt Service Fund 17,000 17,000 17,000 - - Tri-Municipal Cable T.V. Fund 119,000 119,000 119,658 658 119,658 TOTAL OTHER FINANCING SOURCES 136,000 136,000 154,859 18,859 121,705 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 12,084,029 $ 12,084,029 $ 12,572,080 $ 488,051 $ 12,070,531 w N See independent auditors' report. Town of Mamaroneck, New York Town Outside Villages Fund Schedule of Expenditures and Other Financing Uses Compared to Budget Year Ended December 31, 2017 (With Comparative Actuals for 2016) Variance with Final Budget Original Final Positive 2016 Budget Budget Actual (Negative) Actual GENERAL GOVERNMENT SUPPORT Central communications $ 20,000 $ 20,000 $ 28,091 $ (8,091) $ 23,925 Central services 132,500 132,500 79,251 53,249 73,500 Central data processing 108,136 141,646 137,452 4,194 174,368 Unallocated insurance 111,000 111,000 122,412 (11,412) 116,250 Judgments and claims 75,000 75,000 52,790 22,210 105,913 Metropolitan commuter transportation mobility tax 19,600 19,600 18,521 1,079 17,226 Employee evaluations 5,000 5,000 2,900 2,100 3,052 Credit card fees 3,000 3,000 4,804 (1,804) - Contingency 3,329 3,329 - 3,329 - w G.) 477,565 511,075 446,221 64,854 514,234 PUBLIC SAFETY Police 5,377,618 5,377,618 5,293,187 84,431 5,039,019 Other public safety 11,000 11,000 5,179 5,821 2,126 Traffic control 78,620 78,620 57,625 20,995 80,600 Control of animals 18,500 18,500 18,264 236 18,204 Safety inspection 435,151 435,151 471,689 (36,538) 445,402 5,920,889 5,920,889 5,845,944 74,945 5,585,351 HEALTH Narcotics Guidance Council 59,100 59,100 59,100 - 56,100 TRANSPORTATION Off-street parking lots 23,050 23,050 6,321 16,729 9,977 CULTURE AND RECREATION Playgrounds and recreation 55,150 55,150 54,000 1,150 54,272 Youth programs 21,000 21,000 21,000 - 500 Joint youth advocate 500 500 525 (25) 515 Library 1,263,000 1,263,000 1,263,000 - 1,238,076 Celebrations 3,000 3,000 2,558 442 2,969 1,342,650 1,342,650 1,341,083 1,567 1,296,332 HOME AND COMMUNITY SERVICES Board of Appeals 50,109 50,109 48,640 1,469 48,603 Planning Board 71,059 71,059 77,119 (6,060) 60,390 Environmental control 89,580 89,580 90,392 (812) 80,974 Emergency tenant protection 2,500 2,500 2,450 50 2,450 Coastal zone 1,425 1,425 750 675 - 214,673 214,673 219,351 (4,678) 192,417 EMPLOYEE BENEFITS State retirement 100,000 100,000 88,616 11,384 98,326 Police retirement 1,115,000 1,115,000 1,072,787 42,213 1,037,312 Social security 440,000 440,000 377,653 62,347 348,393 Workers' compensation benefits 295,700 415,700 290,924 124,776 308,339 Life insurance 3,500 3,500 3,344 156 3,215 Hospital and medical insurance 2,013,000 2,013,000 1,971,810 41,190 1,832,126 Disability insurance 1,000 1,000 782 218 940 Unemployment benefits 20,000 20,000 13,308 6,692 14,709 3,988,200 4,108,200 3,819,224 288,976 3,643,360 co TOTAL EXPENDITURES 12,026,127 12,179,637 11,737,244 442,393 11,297,771 OTHER FINANCING USES Transfers out General Fund 50,000 50,000 50,000 - 50,000 Debt Service Fund 172,211 172,211 172,211 - 109,661 Capital Projects Fund 150,490 164,755 164,755 - 176,670 TOTAL OTHER FINANCING USES 372,701 386,966 386,966 - 336,331 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 12,398,828 $ 12,566,603 $ 12,124,210 $ 442,393 $ 11,634,102 See independent auditors' report. (This page intentionally left blank) Town of Mamaroneck, New York Highway Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 1,027,433 $ 1,153,072 Receivables Accounts 1,728 472 Due from other governments 23,374 45,472 State and Federal aid 10,035 - Due from other funds 94,400 12,909 129,537 58,853 Prepaid expenditures 473,007 132,800 Total Assets $ 1,629,977 $ 1,344,725 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 170,009 $ 85,835 Accrued liabilities 15,372 4,453 Due to other funds 395,448 999 Due to other governments - 9,661 Total Liabilities 580,829 100,948 Fund balance Nonspendable 473,007 132,800 Assigned 576,141 1,110,977 Total Fund Balance 1,049,148 1,243,777 Total Liabilities and Fund Balance $ 1,629,977 $ 1,344,725 See independent auditors' report. 85 Town of Mamaroneck, New York Highway Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual Years Ended December 31, 2017 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Real property taxes $ 4,991,021 $ 4,991,021 $ 4,982,470 $ (8,551) Departmental income 20,000 20,000 22,683 2,683 Intergovernmental charges 453,000 453,000 370,269 (82,731) Use of money and property 100 100 182 82 Sale of property and compensation for loss 11,500 11,500 29,967 18,467 State aid 85,000 85,000 118,772 33,772 Miscellaneous - - 20 20 Total Revenues 5,560,621 5,560,621 5,524,363 (36,258) EXPENDITURES Current Transportation 3,057,227 3,061,727 2,932,202 129,525 Employee benefits 1,491,400 1,491,400 1,476,230 15,170 Total Expenditures 4,548,627 4,553,127 4,408,432 144,695 Excess of Revenues Over Expenditures 1,011,994 1,007,494 1,115,931 108,437 OTHER FINANCING SOURCES (USES) Insurance recoveries 10,000 148,000 145,272 (2,728) Transfers in 26,800 26,800 41,938 15,138 Transfers out (1,091,893) (1,301,643) (1,497,770) (196,127) Total Other Financing Uses (1,055,093) (1,126,843) (1,310,560) (183,717) Net Change in Fund Balance (43,099) (119,349) (194,629) (75,280) FUND BALANCE Beginning of Year 43,099 119,349 1,243,777 1,124,428 End of Year $ - $ - $ 1,049,148 $ 1,049,148 See independent auditors' report. 86 2016 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 4,593,786 $ 4,593,786 $ 4,583,828 $ (9,958) 20,000 20,000 31,727 11,727 495,000 495,000 381,614 (113,386) 100 100 140 40 12,500 12,500 22,742 10,242 85,000 85,000 102,772 17,772 - - 576 576 5,206,386 5,206,386 5,123,399 (82,987) 2,989,289 2,994,146 2,809,225 184,921 1,305,925 1,305,925 1,339,366 (33,441) 4,295,214 4,300,071 4,148,591 151,480 911,172 906,315 974,808 68,493 10,000 10,000 16,340 6,340 (956,172) (966,167) (954,467) 11,700 (946,172) (956,167) (938,127) 18,040 (35,000) (49,852) 36,681 86,533 35,000 49,852 1,207,096 1,157,244 $ - $ - $ 1,243,777 $ 1,243,777 87 Town of Mamaroneck, New York Special Districts Fund Combining Balance Sheet - Sub Funds December 31, 2017 (With Comparative Totals for 2016) Street Refuse and Water Sewer Lighting Garbage District District District District ASSETS Cash and equivalents $ 486,201 $ 204,897 $ 24,143 $ 117,159 Investments 1,987,334 - - - Receivables Accounts - - - - Due from other governments - 60,523 - - Due from other funds - - - - 60,523 - - Prepaid expenditures 2,580 7,042 7,006 16,815 Total Assets $ 2,476,115 $ 272,462 $ 31,149 $ 133,974 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 229 $ 3,144 $ 10,234 $ 4,042 Accrued liabilities - 246 - - Due to other funds - - 167 14,724 Total Liabilities 229 3,390 10,401 18,766 Fund balances Nonspendable 2,580 7,042 7,006 16,815 Restricted - - - - Assigned 2,473,306 262,030 13,742 98,393 Total Fund Balances 2,475,886 269,072 20,748 115,208 Total Liabilities and Fund Balances $ 2,476,115 $ 272,462 $ 31,149 $ 133,974 See independent auditors' report. 88 Fire Totals Ambulance Protection District District 2017 2016 $ 344,578 $ 450,049 $ 1,627,027 $ 3,674,177 1,132,694 3,120,028 1,051,225 1,271 1,271 3,729 1,200 - 61,723 116,578 69,266 69,266 5,044 1,200 70,537 132,260 125,351 112,103 305,402 450,948 210,617 $ 457,881 $ 1,958,682 $ 5,330,263 $ 5,061,370 $ 22,938 $ 25,784 $ 66,371 $ 68,235 22,190 17,130 39,566 60,499 5,890 14,817 35,598 5,965 51,018 57,731 141,535 134,699 112,103 305,402 450,948 210,617 1,132,694 1,132,694 1,051,225 294,760 462,855 3,605,086 3,664,829 406,863 1,900,951 5,188,728 4,926,671 $ 457,881 $ 1,958,682 $ 5,330,263 $ 5,061,370 89 Town of Mamaroneck, New York Special Districts Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances-Sub Funds Year Ended December 31, 2017 (With Comparative Totals for 2016) Street Water Sewer Lighting District District District REVENUES Real property taxes $ - $ - $ 256,656 Departmental income 1,032,871 266,080 - Intergovernmental charges - - - Use of money and property 8,050 - - Sale of property and compensation for loss - - - Miscellaneous - - - Total Revenues 1,040,921 266,080 256,656 EXPENDITURES Current Public safety - - - Health - - - Transportation - - 139,430 Home and community services 85,426 111,334 - Employee benefits - 38,823 26,009 Debt service Principal - - - Interest - - Total Expenditures 85,426 150,157 165,439 Excess of Revenues Over Expenditures 955,495 115,923 91,217 OTHER FINANCING SOURCES (USES) Transfers in - - - Transfers out (924,059) (93,651) (126,237) Total Other Financing Uses (924,059) (93,651) (126,237) Net Change in Fund Balances 31,436 22,272 (35,020) FUND BALANCES Beginning of Year, as reported 2,444,450 246,800 55,768 Cumulative Effect of Change in Accounting Principle - - - Beginning of Year, as restated 2,444,450 246,800 55,768 End of Year $ 2,475,886 $ 269,072 $ 20,748 See independent auditors' report. 90 Refuse and Fire Totals Garbage Ambulance Protection District District District 2017 2016 $ 2,113,542 $ 592,755 $ 3,598,699 $ 6,561,652 $ 6,103,629 801,112 - 2,100,063 2,110,567 122,966 - 122,966 112,763 - 33,558 41,608 33,512 - 5,067 5,067 14,679 - - 117 117 70,843 2,113,542 1,516,833 3,637,441 8,831,473 8,445,993 - - 1,832,467 1,832,467 1,892,948 1,117,013 - 1,117,013 1,118,290 - 139,430 141,536 1,962,927 - - 2,159,687 2,159,489 - 293,184 1,239,529 1,597,545 1,524,901 29,300 - 29,300 29,300 - 183 - 183 6,384 1,962,927 1,439,680 3,071,996 6,875,625 6,872,848 150,615 77,153 565,445 1,955,848 1,573,145 69,150 69,150 - (143,814) (37,440) (437,740) (1,762,941) (1,130,979) (143,814) (37,440) (368,590) (1,693,791) (1,130,979) 6,801 39,713 196,855 262,057 442,166 108,407 367,150 1,704,096 4,926,671 3,468,973 - - 1,015,532 108,407 367,150 1,704,096 4,926,671 4,484,505 $ 115,208 $ 406,863 $ 1,900,951 $ 5,188,728 $ 4,926,671 91 Town of Mamaroneck, New York Section 8 Housing Assistance Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 824,649 $ 1,385,885 State and Federal aid receivable - 3,685 Total Assets $ 824,649 $ 1,389,570 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities Accounts payable $ 535 $ - Due to other funds 351,934 164,140 Unearned revenues - 39,918 Total Liabilities 352,469 204,058 Deferred inflows of resources Housing assistance payments received in advance - 473,134 Total Liabilities and Deferred Inflows of Resources 352,469 677,192 Fund balance Assigned 472,180 712,378 Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 824,649 $ 1,389,570 See independent auditors' report. 92 Town of Mamaroneck, New York Section 8 Housing Assistance Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended December 31, 2017 2016 REVENUES Use of money and property $ 1,539 $ 1,513 Federal aid 6,109,608 6,203,198 Miscellaneous 20,990 41,426 Total Revenues 6,132,137 6,246,137 EXPENDITURES Current Economic opportunity and development 6,372,335 6,244,244 Excess (Deficiency) of Revenues Over Expenditures (240,198) 1,893 OTHER FINANCING USES Transfers out - (1,200) Net Change in Fund Balance (240,198) 693 FUND BALANCE Beginning of Year 712,378 711,685 End of Year $ 472,180 $ 712,378 See independent auditors' report. 93 Town of Mamaroneck, New York Capital Projects Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 1,749,393 $ 6,575,635 Receivables Accounts 28,278 1,707 State and Federal aid 102,695 - Due from other funds 554,106 1,200 685,079 2,907 Total Assets $ 2,434,472 $ 6,578,542 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 482,840 $ 721,307 Due to other funds 141,077 1,716 Unearned revenues 9,795 11,092 Total Liabilities 633,712 734,115 Fund balance Restricted 1,800,760 5,844,427 Total Liabilities and Fund Balance $ 2,434,472 $ 6,578,542 See independent auditors' report. 94 Town of Mamaroneck, New York Capital Projects Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended December 31, 2017 2016 REVENUES State aid $ 5,170 $ (46) Federal aid 134,888 - Miscellaneous 198,190 168,168 Total Revenues 338,248 168,122 EXPENDITURES Capital outlay 6,368,279 6,697,638 Deficiency of Revenues Over Expenditures (6,030,031) (6,529,516) OTHER FINANCING SOURCES (USES) Bonds issued - 11,175,845 Transfers in 2,127,111 1,061,273 Transfers out (140,747) - Total Other Financing Sources 1,986,364 12,237,118 Net Change in Fund Balance (4,043,667) 5,707,602 FUND BALANCE Beginning of Year 5,844,427 136,825 End of Year $ 1,800,760 $ 5,844,427 See independent auditors' report. 95 Town of Mamaroneck,New York Capital Projects Fund Project-Length Schedule Inception of Project through December 31,2017 Project Project Expenditures Unexpended PROJECT Number Budget and Transfers Balance Police Headquarters Renovation 24-6 $ 1,193,375 $ 1,214,178 $ (20,803) Construction of Water Plant 25-2 1,220,000 1,111,613 108,387 Justice Court Equipment 28-4 48,500 38,747 9,753 Drainage Improvements-Bonnie Way 29-9 205,000 8,869 196,131 Storm Drainage Improvements 29-10 102,000 81,118 20,882 Water District-Capital Improvements 2010-12 330,000 285,507 44,493 Town Center Building Improvement 2011-14 131,530 127,249 4,281 Water Capital Improvement 2012-12 492,400 453,648 38,752 Sanitary Sewer Pump Station 2012-23 65,000 35,425 29,575 Ice Rink Improvements 2012-24 472,535 472,487 48 Water Capital Improvement 2014-12 125,000 125,161 (161) Sanitary Sewer Pump Station 2014-23 35,500 387 35,113 Recreation Facilities Memorial Park 2014-31 42,000 40,793 1,207 Ambulance Equipment 2014-33 38,500 37,610 890 Highway Garage Building Improvements 2014-38 166,000 33,975 132,025 Highway Vehicles and Equipment 2015-06 459,995 259,569 200,426 Fire District Apparatus 2015-11 1,700,000 715,167 984,833 Water Capital Improvement 2015-12 1,027,300 1,345,073 (317,773) Fire Building Improvements 2015-29 363,000 215,319 147,681 Sheldrake Improvements 2015-40 11,300 5,210 6,090 Weaver Street Sidewalk Extensions 2015-45 395,000 38,685 356,315 New Jefferson Parking Road Improvement 2015-47 183,150 66,619 116,531 Storm Water Drainage 2015-49 72,450 648 71,802 Roads,Sidewalk and Curbs 2016-04 1,021,668 987,066 34,602 Highway Vehicles and Equipment 2016-06 367,425 360,450 6,975 Water Capital Improvement 2016-12 1,347,200 658,223 688,977 Town Center Building Improvement 2016-14 371,250 120,149 251,101 Passenger Bus 2016-22 52,565 13,639 38,926 Recreation Facility Improvement 2016-31 57,200 60,975 (3,775) Ambulance Equipment 2016-33 5,000 - 5,000 Conservation Trails 2016-39 52,750 13,023 39,727 Parking Lot Town Center 2016-48 597,120 800,779 (203,659) Storm Water Drainage 2016-49 223,483 124,100 99,383 Sewer System Evaluation 2016-51 1,200,000 1,095,512 104,488 Police Vehicles 2017-02 70,000 70,808 (808) Roads,Sidewalk and Curbs 2017-04 860,000 970,956 (110,956) Highway Vehicles and Equipment 2017-06 580,000 136,769 443,231 Sanitation Vehicle 2017-09 170,500 253 170,247 Water Capital Improvement 2017-12 1,741,850 882,441 859,409 Town Center Building Improvement 2017-14 227,500 421 227,079 Computer Software 2017-19 149,533 159,328 (9,795) Computer Hardware 2017-20 126,000 157,840 (31,840) Ice Rink Improvements 2017-24 105,064 51,620 53,444 Fire Chief Vehicle 2017-27 40,000 37,895 2,105 Fire Building Improvements 2017-29 1,213,000 46,521 1,166,479 Recreation Facility Improvement 2017-31 7,500 - 7,500 Ambulance Equipment 2017-33 19,250 9,490 9,760 Highway Garage Building Improvements 2017-38 163,500 377 163,123 Sheldrake Improvements 2017-40 5,000 - 5,000 Parking Lot Town Improvement 2017-48 41,500 50,631 (9,131) Gardens Lake Improvement 2017-53 61,050 - 61,050 Pryor Manor Bridge Improvement 2017-54 103,500 386 103,114 Fire Turnout Gear Equipment 2017-56 250,000 191 249,809 Records Management 2017-57 42,372 38,505 3,867 Senior Center Improvements 2017-58 16,000 - 16,000 Totals $ 20,168,315 $ 13,561,405 $ 6,606,910 See independent auditors'report. 96 Fund Balance (Deficit)at Total December 31, Revenues 2017 $ 1,193,375 $ (20,803) 1,220,000 108,387 38,747 - 205,000 196,131 102,000 20,882 330,000 44,493 131,530 4,281 492,400 38,752 65,000 29,575 472,535 48 (125,161) 35,500 35,113 42,000 1,207 38,500 890 166,000 132,025 459,995 200,426 1,700,000 984,833 1,027,300 (317,773) 363,000 147,681 11,300 6,090 (38,685) 123,150 56,531 72,450 71,802 1,021,668 34,602 367,425 6,975 1,347,200 688,977 371,250 251,101 10,800 (2,839) 57,200 (3,775) 5,000 5,000 52,750 39,727 582,008 (218,771) 223,483 99,383 1,200,000 104,488 70,000 (808) 282,205 (688,751) 195,000 58,231 - (253) 616,625 (265,816) - (421) 149,533 (9,795) 126,000 (31,840) 105,064 53,444 40,000 2,105 63,000 16,479 7,500 7,500 19,250 9,760 35,000 34,623 5,000 5,000 - (50,631) 61,050 61,050 - (386) - (191) 42,372 3,867 16,000 16,000 $ 15,362,165 $ 1,800,760 97 Town of Mamaroneck, New York Non-Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2017 (With Comparative Totals for 2016) Tri- Municipal Special Cable T.V. Purpose REVENUES Departmental income $ 1,040,103 $ Use of money and property 1,801 - Miscellaneous - 55,310 Total Revenues 1,041,904 55,310 EXPENDITURES Current General government support 946,204 - Home and community services - 5,647 Debt service Principal - - Interest - - Refunding bond issuance costs - - Total Expenditures 946,204 5,647 Excess (Deficiency) of Revenues Over Expenditures 95,700 49,663 OTHER FINANCING SOURCES (USES) Refunding bonds issued - - Issuance premium - - Payment to refunded bond escrow account - - Transfers in - - Transfers out (119,658) (35,634) Total Other Financing Sources (Uses) (119,658) (35,634) Net Change in Fund Balances (23,958) 14,029 FUND BALANCES Beginning of Year 1,738,396 236,342 End of Year $ 1,714,438 $ 250,371 See independent auditors' report. 100 Total Non-Major Governmental Funds Debt Service 2017 2016 $ - $ 1,040,103 $ 1,021,965 11,303 13,104 163,549 55,310 51,413 11,303 1,108,517 1,236,927 - 946,204 908,976 5,647 3,833 2,320,845 2,320,845 1,745,000 858,864 858,864 675,226 124,916 124,916 - 3,304,625 4,256,476 3,333,035 (3,293,322) (3,147,959) (2,096,108) 7,040,000 7,040,000 51,989 51,989 - (6,967,073) (6,967,073) - 3,262,609 3,262,609 2,420,224 (155,950) (311,242) (128,658) 3,231,575 3,076,283 2,291,566 (61,747) (71,676) 195,458 933,413 2,908,151 2,712,693 $ 871,666 $ 2,836,475 $ 2,908,151 101 (This page intentionally left blank) Town of Mamaroneck, New York Tri-Municipal Cable T.V. Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 1,484,118 $ 1,508,200 Accounts receivable 230,320 230,196 Total Assets $ 1,714,438 $ 1,738,396 FUND BALANCE Assigned $ 1,714,438 $ 1,738,396 See independent auditors' report. 102 (This page intentionally left blank) I I Town of Mamaroneck, New York Tri-Municipal Cable T.V. Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended December 31, 2017 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Departmental income $ 688,800 $ 688,800 $ 1,040,103 $ 351,303 Use of money and property 700 700 1,801 1,101 Total Revenues 689,500 689,500 1,041,904 352,404 EXPENDITURES Current General government support 919,842 919,842 946,204 (26,362) Excess (Deficiency) of Revenues Over Expenditures (230,342) (230,342) 95,700 326,042 OTHER FINANCING USES Transfers out (119,658) (119,658) (119,658) - Net Change in Fund Balance (350,000) (350,000) (23,958) 326,042 FUND BALANCE Beginning of Year 350,000 350,000 1,738,396 1,388,396 End of Year $ - $ - $ 1,714,438 $ 1,714,438 See independent auditors' report. 103 2016 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 658,800 $ 658,800 $ 1,021,965 $ 363,165 700 700 1,034 334 659,500 659,500 1,022,999 363,499 889,842 889,842 908,976 (19,134) (230,342) (230,342) 114,023 344,365 (119,658) (119,658) (119,658) - (350,000) (350,000) (5,635) 344,365 350,000 350,000 1,744,031 1,394,031 $ - $ - $ 1,738,396 $ 1,738,396 104 Town of Mamaroneck, New York Special Purpose Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 250,371 $ 243,762 LIABILITIES AND FUND BALANCE Liabilities Due to other funds $ - $ 7,420 Fund balance Restricted 250,371 236,342 Total Liabilities and Fund Balance $ 250,371 $ 243,762 See independent auditors' report. 105 Town of Mamaroneck, New York Special Purpose Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended December 31, 2017 2016 REVENUES Miscellaneous $ 55,310 $ 40,923 EXPENDITURES Current Home and community services 5,647 3,833 Excess of Revenues Over Expenditures 49,663 37,090 OTHER FINANCING USES Transfers out (35,634) (9,000) Net Change in Fund Balance 14,029 28,090 FUND BALANCE Beginning of Year 236,342 208,252 End of Year $ 250,371 $ 236,342 See independent auditors' report. 106 (This page intentionally left blank) Town of Mamaroneck, New York Debt Service Fund Comparative Balance Sheet December 31, 2017 2016 ASSETS Cash and equivalents $ 944,384 $ 931,968 Due from other funds 83,232 1,445 Total Assets $ 1,027,616 $ 933,413 LIABILITIES AND FUND BALANCE Liabilities Due to other funds $ 155,950 $ - Fund balance Restricted 637,496 777,463 Assigned 234,170 155,950 Total Fund Balance 871,666 933,413 Total Liabilities and Fund Balance $ 1,027,616 $ 933,413 See independent auditors' report. 107 Town of Mamaroneck, New York Debt Service Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended December 31, 2017 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) REVENUES Use of money and property $ - $ - $ 11,303 $ 11,303 Miscellaneous - - - - Total Revenues - - 11,303 11,303 EXPENDITURES Debt service Serial bonds Principal 2,320,845 2,320,845 2,320,845 - Interest 858,864 858,864 858,864 - 3,179,709 3,179,709 3,179,709 - Refunding bond issuance costs - 124,916 124,916 - Total Expenditures 3,179,709 3,304,625 3,304,625 - Deficiency of Revenues Over Expenditures (3,179,709) (3,304,625) (3,293,322) 11,303 OTHER FINANCING SOURCES (USES) Refunding bonds issued - 7,040,000 7,040,000 - Issuance premium - 51,989 51,989 - Payment to refunded bond escrow agent - (6,967,073) (6,967,073) - Transfers in 3,179,709 3,179,709 3,262,609 82,900 Transfers out (155,950) (155,950) (155,950) - Total Other Financing Sources 3,023,759 3,148,675 3,231,575 82,900 Net Change in Fund Balance (155,950) (155,950) (61,747) 94,203 FUND BALANCE Beginning of Year 155,950 155,950 933,413 777,463 End of Year $ - $ - $ 871,666 $ 871,666 See independent auditors' report. 108 2016 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ - $ - $ 162,515 $ 162,515 - - 10,490 10,490 - - 173,005 173,005 1,745,000 1,745,000 1,745,000 - 675,226 675,226 675,226 - 2,420,226 2,420,226 2,420,226 - 2,420,226 2,420,226 2,420,226 - (2,420,226) (2,420,226) (2,247,221) 173,005 2,420,226 2,420,226 2,420,224 (2) 2,420,226 2,420,226 2,420,224 (2) 173,003 173,003 - - 760,410 760,410 $ - $ - $ 933,413 $ 933,413 109 (This page intentionally left blank) no PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditors' Report The Honorable Supervisor and Town Board of the Town of Mamaroneck, New York We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the Town of Mamaroneck, New York ("Town") as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated May 18, 2018. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town's internal control over financial reporting ("internal control") to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. PKF O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Harrison, NY 10528 I Tel:914.381.8900 I Fax:914.381.8910 I www.pkfod.com PKF O'Connor Davies,LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to the management of the Town in a separate letter. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. PAF"keemu � d, LbP PKF O'Connor Davies, LLP Harrison, New York May 18, 2018 111 PKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS Report on Compliance For Each Major Federal Program and Report on Internal Control Over Compliance Required by The Uniform Guidance Independent Auditor's Report The Honorable Supervisor and the Town Board of the Town of Mamaroneck, New York Report on Compliance for Each Major Federal Program We have audited the Town of Mamaroneck, New York's ("Town") compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Town's major federal programs for the year ended December 31, 2017. The Town's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditors'Responsibility Our responsibility is to express an opinion on compliance for each of the Town's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ("Uniform Guidance"). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Town's compliance. Opinion on Each Major Federal Program In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2017. PKF O'CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Harrison, NY 10528 I Tel:914.381.8900 I Fax:914.381.8910 I www.pkfod.com PKF O'Connor Davies,LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. Report on Internal Control Over Compliance Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Town's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Pr&/a-2W2, ed LLP PKF O'Connor Davies, LLP Harrison, New York May 18, 2018 113 Town of Mamaroneck, New York Schedule of Expenditures of Federal Awards Year Ended December 31, 2017 Pass-Through Passed Federal Entity Through Federal Federal Grantor/Pass-Through Grantor/ CFDA Identifying to Sub- Program Program or Cluster Title Number(1) Number Recipients Expenditures U.S. Department of Housing and Urban Development Direct Program Section 8 Housing Choice Vouchers 14.871 $ - $ 6,372,335 Environmental Protection Agency Direct Program Long Island Sound Program 66.437 - 134,888 U.S. Department of Health and Human Services Indirect Programs- Passed through County of Westchester Special Programs for the Aging -Title III, Part B AGET6860415 Grants for Supportive Services and Senior Centers 93.044 710335 - 8,172 Special Programs for the Aging -Title III, Part C AGET9420415 Nutrition Services 93.045 710335 - 44,539 Total U.S. Department of Health and Human Services - 52,711 Total Expenditures of Federal Awards $ - $ 6,559,934 (1) Catalog of Federal Domestic Assistance Number The accompanying notes are an integral part of this schedule. 114 Town of Mamaroneck, New York Notes to Schedule of Expenditures of Federal Awards December 31, 2017 Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Town of Mamaroneck, New York ("Town") under programs of the federal government for the year ended December 31, 2017. Federal awards received directly from the Federal agencies as well as Federal awards passed through other government agencies are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town. Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3 - Indirect Cost Rate The Town has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Note 4 - Subrecipient For the year ended December 31, 2017, the Town provided no funds to subrecipients. Note 5 - Nonmonetary Assistance For the year ended December 31, 2017, the Town received no nonmonetary assistance. 115 Town of Mamaroneck, New York Summary Schedule of Prior Audit Findings Year Ended December 31, 2017 None 116 Town of Mamaroneck, New York Schedule of Findings and Questioned Costs Year Ended December 31, 2017 Section I - Summary of Auditor's Results Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP Unmodified Internal control over financial reporting: • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal Control over major federal programs: • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified ? Yes X None reported Type of auditor's report issued on compliance for major federal programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes X No Identification of major federal programs CFDA Number(s) Name of Federal Program or Cluster 14.871 Section 8 Housing Choice Vouchers Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? X Yes No 117 Town of Mamaroneck, New York Schedule of Findings and Questioned Costs (Concluded) Year Ended December 31, 2017 Section II-Financial Statement Findings None Section III-Federal Award Findings and Questioned Costs None 118 i OPKF O'CONNOR DAVIES ACCOUNTANTS AND ADVISORS PKF O'Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms. TR,OCLAWATION Commander Burt Corwin WHEREAS: Burt Corwin recently retired as the highly respected Commander of the Veterans of Foreign Wars Post 1156 David Potts in the Town of Mamaroneck after serving for 10 years; and WHEREAS: Burt served as an officer in the US Army from 1969 to 1971, including one year in Vietnam; and WHEREAS: Burt also had an impressive 33 year career with IBM, retiring at the end of 2007. He then taught part-time in the MBA Programs of Fordham University and lona College until the end of 2012; and WHEREAS: Commander Corwin has been a part of our community for 34 years and has enriched the lives of veterans by supporting veterans' causes, working with the Commanders of American Legion Posts 90 and 347 to secure a tax exemption for veterans from the school district, hosting an annual picnic luncheon for veterans in Montrose; and WHEREAS: Commander Corwin worked with the Town of Mamaroneck to lease the VFW building at 1288 West Boston Post Road for community programs and events. Years later in 2016, he negotiated the sale of the property to the Town ensuring the building will be used by the community and veterans for the future. The proceeds of the sale were donated to local veterans' charities; and WHEREAS: Burt Corwin refers to the VFW Post 1156 David Potts as the "Little Engine That Could" because it has had an important impact on the lives of area veterans and the community as a whole. The community is lucky to have had Commander Burt Corwin, PhD as the conductor of this "Little Engine." NOW, THEREFORE, BE IT RESOLVED, that I, Nancy Seligson, Supervisor of the Town of Mamaroneck, and the Town Board members honor and thank Commander Burt Corwin for his service to veterans and the community, and congratulate and wish him happiness upon his retirement from his position as Commander of the VFW Post 1156. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Town of Mamaroneck to be affixed this 20th day of June 2018. Nancy Seligson, Supervisor Jaine Elkind Eney, Councilwoman Abby Katz, Councilwoman Sabrina Fiddelman, Councilwoman Jeffery L. King, Councilman Attested to by: Christina Battalia, Town Clerk o 9 2i p Town of Mamaroneck T r County of Westchester 740 West Boston Post Road, Mamaroneck, NY 10543-3353 . FOUNDED 1661 COUNSEL TEL: 914/381-7815 FAX: 914/381-7809 WMakerJr@TownofMamaroneckNY.org MEMORANDUM To: Stephen V. Altieri, Town Administrator Christina Battalia, Town Clerk From: William Maker, Jr. - Town Attorney Subject: Local law regarding firearms in Town buildings Date: June 8, 2018 Attached is the proposed local law that will be the subject of the June 20th public hearing. to, Printed on Recycled Paper Local Law No. -2018 This local law shall be known as the "Banning of Firearms within specified Town Buildings" Law. BE IT ENACTED by the Town Board of the Town of Mamaroneck Section 1-Purpose: The Town Board is aware of the country's current plague of shootings of, and other types of attacks on, innocent persons in schools, in the workplace, in churches, in places of worship, in other public places, and in homes. The Town Board recognizes that it cannot solve this problem and is mindful of the right to bear arms given to the people by the Second Amendment to the United States Constitution and by New York Civil Rights Law § 4. Balanced against these rights is the Town's objective of providing a safe work environment for Town employees and a safe place for visitors to Town buildings. Weighing these competing points, the Town Board finds that safety is paramount. Therefore this law bans possession of firearms within the Town Buildings identified in this local law by persons, other than those permitted to do so by this law. Section 2-Creation of a new article in a current chapter of the Mamaroneck Code: Chapter 100 of the Code of the Town of Mamaroneck hereby is amended to add the following Article III to it: Chapter 100 Artide III:Firearms Banned in Town Buildings § 100-7. Legislative Intent. The Town Board is aware of the country's current plague of shootings of, and other types of attacks on, innocent persons in schools, in the workplace, in churches, in places of worship, in other public places, and in homes. The Town Board recognizes that it cannot solve this problem and is mindful of the right to bear arms given to the people by the Second Amendment to the United States Constitution and by New York Civil Rights Law § 4. Balanced against these rights is the Town's objective of providing a safe work environment for Town employees and a safe place for visitors to Town buildings. Weighing these competing points, the Town Board finds that safety is paramount. Therefore this law bans possession of firearms within the Town Buildings identified in this article by persons,other than those permitted to do so by this law. In enacting this law, the Town Board is relying on the oft-quoted phrase from the Unites States Supreme Court's decision in District of Columbia v Heller,554 US 570,626(2008): "Although we do not undertake an exhaustive historical analysis today of the full scope of the Second Amendment, nothing in our opinion should be taken to cast doubt on longstanding . . . laws forbidding the carrying of firearms in sensitive places such as schools and government buildings . . . ." and the Supreme Court's reiteration of that proposition in McDonald v City of Chicago, Illinois, 561 US 742, 786 (2010) ("We made it clear in Heller that our holding did not cast doubt on such longstanding regulatory measures as . . . 'laws forbidding the carrying of firearms in sensitive places such as schools and government buildings . . . .' "). Preceding Heller and McDonald, the Attorney General of the State of New York, in Informal Opinion No. 89-75, opined that a village, when acting in its proprietary capacity, could ban possession of firearms within Village Hall. In reaching this conclusion, the Attorney General relied upon Barrett v Kunzig, 331 F. Supp. 266, 272 (M.D. Term 1971), cert den, 409 US 914 (1972) which had observed: "[I]t would seem clear that the United States Government and its custodian, General Services Administration, could make use of its property as could any private citizen with his home. Hence, it could prevent entry or make such conditions as it deemed proper as a precedent to entry." After Heller, the Tenth Circuit Court of Appeals faced a case where banning the possession of firearms on government property was the issue. In Bonidy v United States Postal Serv., 790 F3d 1121 (10th Cir. 2015), the Court of Appeals upheld the constitutionality of the section of the Code of Federal Regulations that prohibits carrying firearms while on property belonging to the United States Postal Service (39 CFR§232.1 [1]) against a challenge from a person with a permit to carry a concealed weapon. Although the United States Postal Service(USPS) is an arm of the government and not a private company, the Court noted: "As a government-owned business acting as a proprietor rather than as a sovereign, the USPS has broad discretion to govern its business operations according to the rules it deems appropriate. . . . [T]he bans [on possession of firearms] struck down in Heller and McDonald . . . regulated wholly private activity and applied to every citizen within the respective jurisdictions. By contrast, the regulation challenged here applies only to discrete parcels of land owned by the U.S. Postal Service, and affects private citizens only insofar as they are 2 doing business with the USPS on USPS property. And the regulation is directly relevant to the USPS's business objectives, which include providing a safe environment for its patrons and employees." Bonidy, 790 F3d at 1126-27. Finally, this law is compatible with the federal statute (18 USC § 930) that, with certain exceptions, bans the possession of firearms within those buildings owned or leased by the Federal government where employees of the federal government are regularly present for the purpose of performing their official duties. The Town Board, acting in its proprietary capacity as owner of the Town Buildings defined below, enacts the following ban on the possession of firearms in those Town Buildings. § 100-8. Definitions For the purpose of this article, the following terms have these meanings: "Exempt person" means (a) police officers as that term is defined in subdivision thirty-four of section 1.20 of the NY Criminal Procedure Law, (b) peace officers as that term is defined in section 2.10 of the NY Criminal Procedure Law, (c) individuals in the service of the United States who, whether in pursuit of their official duty, or when authorized by federal law, regulation or order are authorized to possess a firearm, and (d) employees of banking institutions or armored transportation companies whose jobs require them to transport cash, but only when they are performing their duties for their employer. An Exempt person has that status under this law whether the person is on-duty or off-duty, or in the case of police officers and peace officers only, whether that officer is actively employed or retired. "Firearm" means an instrument meeting the description contained in any one of the following paragraphs of section 265.00 of the NY Penal Law: (1): Machine-gun (3): Firearm (11): Rifle (12): Shotgun 3 (15-a): Electronic dart gun (15-c): Electronic stun gun (20): Disguised gun (21): Semiautomatic (22): Assault weapon. "Firearm" also includes BB guns, pellet guns, paint ball guns and air pistols or rifles. "Town Building" means the buildings and improvements known by these names and/or postal addresses, but not the parking lots that are adjacent thereto: (a) the Town Center located at 740 West Boston Post Road, Mamaroneck, NY 10543 (b) the Hommocks Park Ice Rink located at 140 Hommocks Road, Larchmont, NY 10538 (c) the Weaver Street Firehouse located at 205 Weaver Street, Larchmont, NY 10538 (d) the Ambulance District Building located at 155 Weaver Street, Larchmont, NY 10538 (e) the Highway Garage Building located at 40 Maxwell Avenue, Larchmont, NY 10538 (f) the Parks Building located within Memorial Park (g) the Senior Citizen Center located at 1228 Boston Post Road, Larchmont, New York 10538 (h) the Sheldrake Environmental Center located at 685 Weaver Street, Larchmont NY 10538. § 100-9. Illegal possession It is a violation of this law for any person, other than an Exempt person, to possess a firearm when in a Town Building. § 100-10. Resident Custodians Notwithstanding section 100-9, the custodian who resides at the Senior Citizen Center and the adult members of that custodian's family are allowed to possess within the Senior Citizen Center the firearms which that person is licensed to possess, and the custodian who resides at the Sheldrake Environmental Center and the adult members of that custodian's family are allowed to possess within the Sheldrake Environmental Center the firearms which that person is licensed to possess. § 100-11. Signage Notice of this law's ban on the possession of firearms in Town Buildings shall be posted conspicuously at each public entrance to a Town Building. No person shall be convicted of violating this article if such notice is not so posted, unless such person had actual notice of the ban. 4 § 100-12. Penalty A person who violates this article shall be charged with a violation and if convicted shall be punished by a fine of not less than five hundred and no/ths ($500.00) dollars and not more than one thousand and no/ths ($1,000.00) dollars. Section 3-Severability: Should any provision of this Local Law be declared invalid or unconstitutional by any court of competent jurisdiction, such declaration of unconstitutionality or invalidity shall not affect any other provisions of this Local Law, which may be implemented without the invalid or unconstitutional provisions. Section 4-Effective Date: This Local Law shall become effective upon filing with the Secretary of State. May 30,2018 5 LEGAL NOTICE IS HEREBY GIVEN that pursuant to Section 130 of the Town Law of the State of New York, and pursuant to a resolution of the Mamaroneck Town Board adopted on June 6, 2018 a Public Hearing will be held on Wednesday, June 20, 2018 at 8:00 PM or as soon thereafter as is possible at the VFW/Town Senior Center, 1288 Boston Post Road, Larchmont, New York to consider: "Restriction on Parking on a Portion of the West Side of North Chatsworth Avenue near its Intersections with Rochelle Road and Huguenot Drive" Law. Purpose The parking of automobiles on the west side of North Chatsworth Avenue near the corner formed by the intersection of the west side of North Chatsworth Avenue and the south side of Rochelle Road, and near the corner formed by the intersection of the west side of North Chatsworth Avenue and the north side of Huguenot Drive creates visual obstructions for automobiles attempting to enter North Chatsworth Avenue from Rochelle Road and Huguenot Drive. Preventing parking near those corners will improve safety for automobiles and pedestrians. The full text of this document can be viewed on the website or copies can be obtained at the Town Clerk's office during regular hours, Mon-Fri, 8:30 AM to 4:30 PM, In June, July and August until 4:00 PM at 740 W. Boston Post Road Mamaroneck, NY PLEASE TAKE FURTHER NOTICE that at the Public Hearing all persons interested will be given an opportunity to be heard and that all persons are invited to submit written comments at or prior thereto. BY ORDER OF THE TOWN BOARD OF THE TOWN OF MAMARONECK Published: June 13, 2018 Adjourned until June 20, 2018 Adjourned until June 6, 2018 Public Hearing Notice LEGAL NOTICE IS HEREBY GIVEN that pursuant to Section 130 of the Town Law of the State of New York, and pursuant to a motion of the Mamaroneck Town Board on June 6, 2018 this Public Hearing will be adjourned until Wednesday, June 20, 2018 at 8:00 PM or as soon thereafter as is possible at the VFW/Town Senior Center, 1288 Boston Post Road, Larchmont, New York to consider: "Prohibited Overnight Parking on Garit Lane" Law. Purpose On May 2, 1984, it was decided to allow parking between the hours of 3:00 am (prevailing time) and 6:00 am (prevailing time) on Garit Lane. Over the last thirty years circumstances have changed and therefore like most streets within the Town, overnight parking on Garit Lane should be prohibited. The full text of this document can be viewed on the website or copies can be obtained at the Town Clerk's office during regular hours, Mon-Fri, 8:30 AM to 4:30 PM, In June, July and August until 4:00 PM at 740 W. Boston Post Road Mamaroneck, NY PLEASE TAKE FURTHER NOTICE that at the Public Hearing all persons interested will be given an opportunity to be heard and that all persons are invited to submit written comments at or prior thereto. BY ORDER OF THE TOWN BOARD OF THE TOWN OF MAMARONECK Original Publication: April 27, 2018 gF +i O 9 2 � 9 Town of Mamaroneck Town Center = 740 West Boston Post Road, Mamaroneck, NY 10543-3353 • ECUNCEC '6EI . OFFICE OF THE TOWN ADMINISTRATOR TEL: 914/381-7810 FAX: 914/381-7809 townadministrator©townofmamaroneck.org www.townofmamaroneck.org Memorandum To: Board of Fire Commissioners Re: Authorization-Transfer of Funds Engineering Charges-Weaver Street Firehouse Project Date: June 15, 2018 Griggs and Davis Engineering was originally retained by the Fire District to conduct engineering services for the firehouse restoration project. The original retainer dates back to April of 2017. At that time the authorization included work on design and preparation of the bidding documents at a total cost of$63,625. Subsequently the engineering agreement was expanded to include an additional feasibility analysis needed for review of the concrete floor slab and work related to the administration of the construction project. The total value of the Griggs and Davis Contract is now $149,325. In order to fund the full value of the contract an additional $85,700 must be appropriated to the capital project. Attached is a more detailed summary of the engineering services arrangement. The proposal is to transfer the funds from the Fire District Fund Balance but to subsequently replenish the fund balance when the funds are borrowed for the renovation of the fire house basement. ACTION REQUESTED: THAT THE BOARD OF FIRE COMMISSIONERS APPROVE AND AUTHORIZE THE TRANSFER OF FUNDS IN THE AMOUNT OF $85,700 FROM THE UNEXPENDED BALANCE OF THE FIRE DISTRICT TO CAPITAL PROJECT#2017-FIRE BUILDING IMPROVEMENTS IN ACCORDANCE WITH THE SCHEDULE PREPARED BY THE TOWN COMPTROLLER Stephen V. Altieri Town Administrator io Printed on Recycled Paper Altieri, Stephen From: Wasp, Robert Sent: Wednesday, June 13, 2018 4:55 PM To: Altieri, Stephen Cc: Siligato, Anthony Subject: Griggs & Davis Charge Summary - TMFD Firehouse CP-2017-29 Attachments: Griggs & Davis Charges_06052018.xlsx; FW:Weaver Street Fire Headquarters - Larchmont, NY; 3-20-17 email.pdf Steve, Provided below is a bullet summary of Griggs & Davis's Engineering Charges to the Firehouse Project (excluding the any initial feasibility study completed prior to the award of his April 2017 proposal for detailed design, bidding and construction inspection services). • The Board approved the Construction Document Phase as defined per April 2017 Letter of Agreement during its meeting on May 3, 2017. Other work phases (Bidding, Permit, Construction Admin) were not included under this authorization o Construction Document Phase: $63,625.00 + reimbursable • Additional feasibility analysis was authorized for Griggs and Davis to evaluate the original firehouse floor slab for potential replacement by email dated 3/20/2017 (attached) o Additional Feasibility Study: $7,500.00 • Following the receipt of construction bids, Griggs and Davis agreed to amend the terms of their April 2017 Letter of Agreement per the following breakdown (described on attached email). All work phases note reimbursable as additional o Construction Document Phase: $55,325.00 o Bidding Phase: $8,000.00 o Building Permit Phase: $3,000.00 o Construction Admin: $75,500.00 Based upon there is presently a funding gap of$85,700 that needs Board authorization. This was calculated as shown in the following table: BUDGET Ii b\i COST (S) Construction Doc Phase S 55,325.00 Bidding Phase S 8,000.00 Building Permit Phase S 3,000.00 Construction Admin Phase S 75,500.00 Add. Feasabrlity Study S 7,500.00 SUBTOTAL S 149,325.00 Less Pr¢i'ious Board.4uthori_nrioi; S 63,625 00 FLNDLNG GAP $ 85,700.00 Robert P. Wasp, P.E., C.D.T. Town Engineer 1 AMEND 2017 CAPITAL PROJECT & BUDGET - (#2017-29 FIRE HQ BLDG IMP) 6/20/2018 TOWN BOARD MEETING CAPITAL PROJECTS FUND(FUND H): AMEND BUDGET: EXP H.3410.0400.2017.29 FIRE BUILDING IMPROVEMENTS $ 85,700.00 REV H.0000.5034.2017.29 TRANSFERS FROM FIRE DISTRICT $ 85,700.00 (CAPITAL PROJECT#2017-29) (Increase project budget with$85,700 of Fire district unreserved fund balance for the purpose of funding the structural engineering component(Bidding phase, Building permit phase, Construction admin phase &initial feasibility study)for Fire HQ apparatus floor. * Original Capital Project Budget: $ 1,150,000.00 * Funding source: * SERIAL BONDS/BAN-R.O.B. 2/1/17 $ 1,150,000.00 * TRANSFER FR FIRE DISTRICT FUND-R.O.B. 5/3/17 $ 63,000.00 * TRANSFER FR FIRE DISTRICT FUND-R.O.B. 5/2/18 $ 30,000.00 * TRANSFER FR FIRE DISTRICT FUND-R.O.B. 6/20/18 $ 85,700.00 * Capital Project Budget amended &adopted on 6/20/18: $ 1,328,700.00 AMEND 2018 FIRE DISTRICT OPERATING BUDGET(FUND SF): AMEND BUDGET: EXP SF.9900.9950 TRANSFER TO CAPITAL PROJECT $ 85,700.00 REV SF.0000.5995 APPROPRIATED FUND BALANCE $ 85,700.00 o o Town of Mamaroneck _ rn Town Center •FOUNDED1661 • 740 West Boston Post Road, Mamaroneck, NY 10543-3353 TEL: 914/381-7810 OFFICE OF THE TOWN ADMINISTRATOR FAX: 914/381-7809 saltieri@townofmamaroneckNY.org Memorandum To: Supervisor & Town Board Re: Proposed 2019 Budget Calendar Date: June 14, 2018 Attached is a proposed calendar of dates for the preparation and review of the Town Budget that is subject to adoption by the Board. However, it is possible to make changes to the calendar. Stephen V. Altieri Town Administrator BUDGET CALENDAR-2019 TOWN BUDGET* Thursday, June 21, 2018 Distribution of Operating & Capital Budget Worksheets/Budget Instructions to Department Heads Monday, August 20, 2018 Submission of Capital Budget Worksheets to Town Administrator's Office Monday, September 10, 2018 Input of Operating Budgets into KVS Budget System Wednesday, September 12, 2018 Submission of All Operating Budget Work Sheets Monday, September 17, 2018 through Departmental Budget Work Sessions Friday, September 28, 2018 Wednesday, October 17, 2018 8:00pm Submission of Tentative Budget to the Town Board Wednesday, October 24, 2018 5:00pm — 7:00pm Preliminary Review of Tentative Budget with Town Board - Conference Room D Monday, October 29, 2018 5:00pm —8:00pm Budget Review Conference Room D Wednesday, October 31, 2018 5:00pm — 8:00pm Budget Review Continued if Necessary Conference Room D Monday, November 5, 2018 5:00pm - 7:00pm Capital Budget Review Wednesday, December 5, 2018 8:00pm Budget Hearing 2019 Preliminary Budget Wednesday, December 19, 2018 8:00pm Adoption 2019 Budget *Additional sessions may be added, if necessary. Morn wVVIJLIVVt https://townofmamaroneck.novusagenda.com/AgendaWeb/CoverSheet. Item Coversheet „'; Town of Mamaroneck Town Center L� = 740 West Boston Post Road, Mamaroneck,NY 10543-3353 OFFICE OF THE TOWN ADMINISTRATOR TO: Town Administrator Altieri FROM: Town Superintendent of Highways Martirano DATE: June 20, 2018 Award of Contract TA-18-o1 for Resurfacing of Various Roads Bids were opened on May 16, 2018 for the above referenced contract for Resurfacing Various Roads. Bidder ELQ Industries from New Rochelle submitted the lowest bid at $251,762. 2018 Capital Budget funding(CHIPs and balance of TA-17-05)for this project is approximately$160,000. Since this is a unit cost contract and ELQ has submitted the lowest unit cost for asphalt at$117.00 per ton, we have the SUBJECT: flexibility of eliminating items(curbs)and decreasing the amount of asphalt. Therefore, I recommend award of the contract to ELQ Industries of New Rochelle, NY.They have successfully and satisfactorily performed this type of work for the town in the past. Respectfully Submitted, Lou Martirano Superintendent of Highways )f1 6/15/2018,3:48 PM 2018 Road Resurfacing Bid Results - May 16, 2018 - 11:00AM Contract TA-18-01 Town of Mamaroneck Highway Department BIDDERS Town ELQ Industries PCI Industries Montesano Bros. Estimate New Rochelle,NY 10801 Mt.Vernon,NY 10510 New Rochelle,NY 10801 Bid Item# Bid Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost 1.Asphalt Concrete Wearing Course-SuperPave 1,200 Ton $ 107.00 $ 128,400.00 $ 117.00 $ 140,400.00 $ 140.00 $ 168,000.00 $ 139.00 $ 166,800.00 2.Asphalt Concrete Wedge Course 100 Ton $ 107.00 $ 10,700.00 $ 112.00 $ 11,200.00 $ 150.00 $ 15,000.00 $ 202.00 $ 20,200.00 3.Milling and Key Cuts 500 SY $ 3.50 $ 1,750.00 $ 10.00 $ 5,000.00 $ 20.00 $ 10,000.00 $ 35.00 $ 17,500.00 4.Reset Manhole Castings 10 Each $ 510.00 $ 5,100.00 $ 625.00 $ 6,250.00 $ 650.00 $ 6,500.00 $ 870.00 $ 8,700.00 5.Reset Catch Basin Castings 8 Each $ 625.00 $ 5,000.00 $ 625.00 $ 5,000.00 $ 900.00 $ 7,200.00 $ 995.00 $ 7,960.00 6.Reset Existing Stone Curb 600 LF $ 18.00 $ 10,800.00 $ 44.00 $ 26,400.00 $ 40.00 $ 24,000.00 $ 120.00 $ 72,000.00 7.Install Granite Curb 600 LF $ 45.00 $ 27,000.00 $ 61.00 $ 36,600.00 $ 55.00 $ 33,000.00 $ 142.00 $ 85,200.00 8.New Concrete Curb 300 LF $ 25.00 $ 7,500.00 $ 45.00 $ 13,500.00 $ 65.00 $ 19,500.00 $ 78.00 $ 23,400.00 9.New Concrete ADA Ramps 24 SF $ 50.00 $ 1,200.00 $ 288.00 $ 6,912.00 $ 50.00 $ 1,200.00 $ 214.00 $ 5,136.00 10.Water Valve Box Adjustment 4 Each $ 125.00 $ 500.00 $ 125.00 $ 500.00 $ 125.00 $ 500.00 $ 125.00 $ 500.00 11.Gas Valve Box Adjustment 10 Each non-paymentnon- - pent --- non-payment '"' non-payment --- 12.Maintenance&Protection of Traffic 24 LS non-payment --- non-payment --- non-payment --- non-payment ___ $197,950.00 $251,762.00 $284,900.00 $407,396.00 estimate based on 2017 prices Bid Bond? Yes Bid Bond? Yes Bid Bond? Yes Prequalification Yes Prequalification Yes Prequalification Yes FUNDING SOURCES: CHIPs $83,726.54 PAVE NY $19,111.42 EWR $15,989.77 TA-17-05 $40,000.00 $158,827.73 Lou Martirano,Superintendent of Highways 0 9 9 0 o Town of Mamaroneck r" Town Center o 740 West Boston Post Road, Mamaroneck, NY 10543-3353 • FOUNDED166t• OFFICE OF THE TOWN ADMINISTRATOR TEL: 914/381-7810 FAX: 914/381-7809 townadministrator@townofmamaroneck.org www.townofmamaroneck.org Memorandum To: Supervisor and Town Board Re: Authorization to Proceed/Budget Amendment Repairs to the pry's` Manor Bridge. The Pjr Manor Bridge is in need of major repairs to the abutments, façade and foundations. The bridge is located in the City of New Rochelle and the Town of Mamaroneck. For that reason the Town and the City entered into an agreement a number of years ago for each community to assume fifty percent of the cost of maintenance and repair. Under the agreement the City of New Rochelle assumes administrative responsibilities for engineering, preparation of bid documents and other planning functions subject to Town approval. Planning for this project began in 2017. At that time the estimated budget for the project was $210,000 with the Town's share being about $105,000. Due to a series of coastal storms over the winter months there was significant additional damage to the bridge. The project was re-engineered to account for the additional damage. Plans and specifications were prepared and the City of New Rochelle recently let the project for bid and received three responses: • Defoe Construction $2,118,435 • McNamee Construction $1,446,390 • ELQ Construction $ 426,618 The bids have been evaluated and the low bid from ELQ has been found complete and acceptable. Attached is a memorandum from the Town Engineer that presents a further breakdown of the components of the revised budget for the project. The total costs including engineering and construction administration is now estimated to be $542,819.80. The Town's share of this cost is $271,448. Adding a small contingency we are recommending a total Town budget of$275,000. This would require a transfer of funds for our share of the project in the amount of$171,500. The second attachment is a schedule prepared by the Comptroller outlining the transfer of funds needed for the project. Pursuant to New York State Law Town governments have responsibility for virtually all bridges in the Town including those in the villages. Therefore our bridge maintenance budget is in the Townwide Budget. The recommendation is to transfer funds from the Townwide unexpended balance to finance our share of the project. is Printed on Recycled Paper The City of New Rochelle City Council will be considering this matter at their meeting on June 19, 2018. Subject to their awarding the bid for the project the Town Board is asked to consider this matter on June 20, 2018. ACTION REQUESTED: THAT THE TOWN BOARD APPROVE THE TOWN OF MAMARONECK PROCEEDING WITH THE CITY OF NEW ROCHELLE TO COMPLETE REPAIRS TO THE PRYOR MANOR BRIDGE AND THAT THE TOWN AUTHORIZES A TRANSFER OF FUNDS IN THE AMOUNT OF $171,500 INTO CAPITAL PROJECT#2017- 54 IN ACCORDANCE WITH THE COMPTROLLER'S TRANSFER SCHEDULE /r Stephen V. Alfieri Town Administrator Altieri, Stephen From: Wasp, Robert Sent: Wednesday,June 13, 2018 4:14 PM To: Altieri, Stephen Cc: Siligato, Anthony Subject: Pryer Manor Bridge - Project Budget Update - CP-2017-54 Attachments: Copy of Bid Tabulation - 10-690-P6.xls Hi Steve, As we discussed earlier this afternoon, I've prepared the following summary breakdown of changes from the Towns original budget allocation for the project: • Improvements to the Pryer Manor Bridge were originally planned under Capital Project#2017-54 in the amount of$103,500 (inc.3,500 for contingency / bonding). • New Rochelle retained GPI, Inc. for engineering design and preparation of bid documents for the scope of repairs o Original GPI contract amount: $28,000.00 • Lead testing was later added the GPI scope in the amount of +$1,300.00 o Revised GPI contract amount: $29,300.00 • NYSDEC Permit Fee was charged to the project through request on 2/16/18 o NYSDEC Permit Fee $200.00 • Additional deterioration to the Bridge was discovered following inspection of the Pryer Manor Bridge in November/December 2017. Additional scope was added to GPI's contract to provide design for the necessary improvements. o Supplemental GPU Scope Design Fee: $18,000.00 • Bids were received on May 23, 2018. ELQ Industries has been identified as the apparent low-bidder and is scheduled to be awarded the construction contract following authorization from the City Board on June 19, 2018. Bid tabulation prepared by New Rochelle DPW is attached to this email. o ELQ Industries Bid Amount: $426,618.00 o Recommended additional 10% Contingency (Change Orders: $42,661.80) • Tectonic Engineering submitted a proposal for construction inspection/administration services dated June 6, 2018. This contract has not yet been executed but appears complete and acceptable to move forward. o Construction Inspection Contract: $26,040.00 Based upon the above, total costs for the project amount to $542,819.80. Please note that this includes the additional 10% Contingency Factor added to the Contractors Costs for likely change orders. The table below summarizes these costs in table format and includes calculation of the Town's project share as total and as increase from the former established budget. 1 AMEND 2017 CAPITAL PROJECT & BUDGET - (#2017-54 PRYOR MANOR BRIDGE IMP) 6/20/2018 TOWN BOARD MEETING CAPITAL PROJECTS FUND(FUND H): AMEND BUDGET: EXP H.5120.0400.2017.54 PRYOR MANOR BRIDGE IMPROVEMENTS $ 171,500.00 REV H.0000.5031.2017.54 TRANSFERS FROM GENERAL TOWNWIDE FUND $ 171,500.00 (CAPITAL PROJECT#2017-54) (Increase project budget with$171,500 of General Townwide unreserved fund balance for the purpose of funding the bid award contract along with all necessary components of the bridge improvement project(engineering design&preparation of bid docs, lead testing, NYSDEC permit fee, construction inspection&admin services). " Original Capital Project Budget: $ 103,500.00 * Funding source: * SERIAL BONDS/BAN-R.O.B. 2/1/17 $ 103,500.00 * TRANSFER FR GENERAL TOWNWIDE FUND-R.O.B. 6/20/18 $ 171,500.00 * Capital Project Budget amended&adopted on 6/20/18: $ 275,000.00 AMEND 2018 GENERAL TOWNWIDE OPERATING BUDGET(FUND A): AMEND BUDGET: EXP A.9900.9950 TRANSFER TO CAPITAL PROJECT $ 171,500.00 REV A.0000.5995 APPROPRIATED FUND BALANCE $ 171,500.00 O 9 2 � 3 9 ° ° Town of Mamaroneck W "' Town Center x n ~ " 740 West Boston Post Road, Mamaroneck, NY 10543-3353 . FOUNDFD '6F1 . OFFICE OF THE TOWN ADMINISTRATOR TEL: 914/381-7810 FAX: 914/381-7809 townadministrator@townofmamaroneck.org www.townofmamaroneck.org Memorandum To: Supervisor and Town Board Re: Proposed Amendment to Concession Agreement- Slapshot Café Date: June 14, 2018 Attached is a memorandum reviewed with the Recreation Commission at their meeting on Tuesday, June 12, 2018 in regard to an amendment to the rink/pool concession agreement. The Commission did endorse the recommendation on the proposal however final approval is required by the Town Board. ACTION REQUESTED- THAT THE TOWN BOARD APPROVE THE PROPOSED AMENDMENT TO THE CONCESSION AGREEMENT BETWEEN THE TOWN AND SLAPSHOT CAFE AND THAT THE TOWN ADMINISTRATOR BE AUTHORIZED TO EXECUTE THE AGREEMENT SUBJECT TO THE APPROVAL OF THE TOWN ATTORNEY AS TO THE FORM OF THE AGREEMENT. - Stephen V. Altieri Town Administrator 0 Printed on Recycled Paper E• 0 9 .. 2i 9 ° 9 Town of Mamaroneck Z W m Town Center 1 '' ''- 7 740 West Boston Post Road, Mamaroneck, NY 10543-3353 • f O U N UE7 .a • OFFICE OF THE TOWN ADMINISTRATOR TEL: 914/381-7810 FAX: 914/381-7809 Memorandum townadministrator@townofmamaroneck.org To: Chairman and Members of the Recreation Commission www.townofmamaroneck.org Re: Proposed Amendment to Concession Agreement-Slapshot Cafe Date: June 7, 2018 Through the Recreation Department, the operator of the concession requested an opportunity to discuss the potential for amending the current concession agreement for the ice rink and pool. The request is based upon the operator's concern that with changes in attendance at the rink and more liberal policies at the Hommocks Pool regarding outside food, the economic viability of the concession has changed. The ability to operate profitably under the current concession agreement has, according to the operator, become more difficult. We therefore agreed to discuss an amendment to the concession agreement. Slap Shot Café has operated the concession since 1999. Generally Slap Shot Café has been responsive to the Town on offerings to the public and changes that we have requested in his operation. During their tenure, the concession agreement has been put out for bid on two occasions and each time he was the successful bidder. I should point out that when we have issued a request for proposals for the concession, there has not been a significant response. In the last proposal process only one other vendor expressed an interest in the concession. At the same time that we agreed to discuss a possible amendment to the current concession agreement, Jill Fisher and Rob Lunde did test the waters to determine whether alternative concessionaires were available. One concessionaire did express some interest however in the end the concessionaire failed to follow through with his proposal. In view of the lack of alternative concessionaires and the operating history of Slap Shot Café, we felt it was worthwhile to consider an amendment to the plan to insure the continued operation of a concession stand at the rink and pool.Currently Slap Shot Café is contracted to pay a monthly rent of$2,416 during the rink season and $1,916 during the pool season. The current concession agreement runs through September 15, 2018. The proposed amendment to the concession agreement is outlined on the next page. We have insisted that as part of any amendment, Slap Shot Café must provide monies for capital improvements to the kitchen equipment. The capital equipment purchased with the subsidy from S p Shot Café will be owned by the Town and remain with the Town at the • • of th• ••ncession agreement. / ..Aor-- ----- Fisher ' Stephen V. Altieri Supe endent of Recreation Town Administrator i«1 Printed on Recycled Paper Proposed Amended Concession Agreement 1. Term-January 1, 2018-September 15, 2021 -44.5 months 2. Rent Payment January 1, 2018-June 30, 2018 - Lump Sum Payment of$9,750 July 1, 2018-June 30, 2019- Monthly Expense- Rent- $1,146 Utilities- 250 Capital Equip. 230 Total $1,626 Total Annual Rent $19,512 July 1, 2019-June 30, 2020 Monthly Expense - Rent $1,180 Utilities 250 Capital Equip. 230 Total $1,660 Total Annual Rent $19,920 July 1, 2020-September 15, 2021 -14.5 months Monthly Expense - Rent $1,250 Utilities 250 Capital Equip. 230 Total $1,730 Total Rent- 14.5 months $25,085 The capital equipment component of the rent will be paid by separate check each month and those funds will be credited to the Hommocks Ice Rink Trust Fund. � 9 O ° n Z Mamaroneck Town Police Town Center 7 740 West Boston Post Road,Mamaroneck,NY 10543-3345 TEL: 914/381-6100 June 5, 2018 From: Chief Paul Creazzo To: Board of Police Commissioners Subject: SALARY AUTHORIZATION / PROMOTION Salary authorization is requested for the position of Police Detective at an annual rate of $120,112. The department wishes to promote Police Officer William Kolman to the position of Detective. This promotion will fill a Detective position which has been left vacant by the retirement of Detective Edmonds. Police Officer Kolman began his career with the Town of Mamaroneck Police Department in December 2007. He previously served as a police officer in the New York City Police Department for three years. With your approval, the promotion date for this position will be June 21, 2018. Respectfully submitted, Paul Creazzo Chief of Police tli Printed on Recycled Paper Q4, 20 �9 7 Z Mamaroneck Town Police rn Town Center t 7 740 West Boston Post Road,Mamaroneck,NY 10543-3345 TEL: 914/381-6100 June 5, 2018 From: Chief Paul Creazzo To: Board of Police Commissioners Subject: SALARY AUTHORIZATION / PROMOTION Salary authorization is requested for the position of Police Sergeant at an annual rate of $127,451. The department wishes to promote Police Officer William Rakas to the position of Sergeant. This promotion will fill a Sergeant position which has been left vacant by the promotion of Sergeant Anthony Hoffmann to Lieutenant. Police Officer William Rakas began his career with the Town of Mamaroneck in July 2010. He previously served as a Police Officer in the New York City Police Department for three years. With your approval, the promotion date for this position will be June 21, 2018. Respectfully submitted, Paul Creazzo Chief of Police R to/ Printed on Recycled Paper