KEY FINANCIAL FACTS

ACCOUNTING & AUDITING ISSUES

• Currently, the City of Hubbard prepares its annual financial report in accordance with Ohio Administrative Code Section 117-6-01. This requires the City to prepare financial statements in accordance with Generally Accepted Accounting Principles.
• The City issues a Comprehensive Annual Financial Report. The City's 2004 CAFR was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers of the United States and Canada. This was the fifth consecutive time the City received such an honor.
• The City uses Governmental Fund Accounting.
• Types of Funds seen on the City Financial Statements:
  • GENERAL FUND: Accounts for all financial resources except for those required by law to be accounted for in another fund. The General Fund is the City's general operating fund.
  • SPECIAL REVENUE FUNDS: Account for specific revenue sources that are legally restricted to disbursement for specified purposes.
  • DEBT SERVICE FUNDS: Account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and other related costs.
  • CAPITAL PROJECT FUNDS: Account for the financial resources used for the acquisition or construction of major capital facilities.
  • ENTERPRISE FUNDS: Account for operations that are financed and operated in a manner similar to that of a private business enterprise-where costs of providing goods/services to the general public on a continual basis are recovered or financed primarily through user charges.
  • INTERNAL SERVICE FUNDS: Account for the financing of goods/services provided by one department to other departments within the same governmental entity on a cost-reimbursement basis.
  • TRUST & AGENCY FUNDS: Account for assets/resources held by the governmental unit in a trustee capacity or as an agent for individuals, private organizations, or other governmental units.
• The City is subject to an annual audit as performed by the Office of the Auditor of the State of Ohio.

BUDGETARY ISSUES

• A Tax Budget is submitted to the Trumbull County Auditor each year by July 15-based upon estimated resources and expenditures for the period of January 1 to December 31 of the following year.
• The Trumbull County Budget Commission certifies the City's budget by September 1. Upon receipt of the certification, the City must revise its estimated appropriations in order to comply with the official certificate of estimated revenue as projected for each fund.
• Each fund is comprised of a series of line item appropriations. The total annual appropriations should be passed by January 1, and must be submitted to the County Auditor by April 1 for the period of January 1 to December 31. The appropriations may be amended throughout the year, as new information becomes available. However, appropriations may never exceed estimated resources as certified.
• Ohio law requires the City to use the encumbrance method of accounting. This system requires recording purchase commitments before the expenditure of city funds is made. As a result, a portion of the available line item appropriations is reserved for that commitment when it becomes payable.

TREASURY ISSUES

• Legal statute requires that money held by the City of Hubbard be classified into one of three categories.
  • Category 1 is deemed "active" money. This money is used to meet current operating expenses of the City. As a result, the funds must be highly liquid and can be maintained as cash in the City treasury, a depository accounts payable or withdrawable on demand account-including NOW accounts.
  • Category 2 consists of "inactive" money. This money cannot be required for use within the current two-year period for designation of banking depositories. Subject to certain restrictions, this money can only be invested in certificates of deposit (CD's).
  • Category 3 is comprised of "interim" monies-money, which is not required for immediate use, but will be needed before the end of the current two-year designation of banking depository period.
• The City of Hubbard maintains its Category 1 money in a local banking depository.
• Category 3 money is held in the Treasurer of State's investment pool-STAR Ohio or bank certificates of deposit.

FINANCIAL FACTS & FIGURES

City of Hubbard 2005 Total Budget		$21,651,745
City of Hubbard 2006 Total Budget		$18,494,753
Total Investment Pooled In STAR Ohio (As of December 2005)		$45,797
Total Investment Pooled In Bank Instruments (As of December 2005)		$9,594,019

OWDA Loan
Principal Outstanding, 12-31-05		$1,994,859
Interest Rate:		6.58%
Loan Term:		25 years
Date of Final Payment:		July 1, 2020
Series 1997 Sewer System Mortgage Revenue Bonds
Principal Outstanding, 12-31-05		$ 4,005,000
Interest Rates:		4.75% to 5.45%
Debt Maturity:		November 15, 2015
Issue II Loan - North Main Street Pump Station & Force Main Improvements
Principal Outstanding, 12-31-05		$158,572
Interest Rates:		0%
Loan Term:		20 years
Issue II Loan - Waterline Looping Project, Phase I
Principal Outstanding, 12-31-05		$87,621
Interest Rate:		0%
Loan Term:		20 years
Issue II Loan - Myron Street Waterline Replacement Project
Principal Outstanding, 12-31-05		$127,585
Interest Rate:		0%
Loan Term:		20 years
AMP Ohio Generator Project Bond Anticipation Notes
Principal Outstanding, 12-31-05		$1,890,000
Interest Rate:		3.75%
Loan Term:		1 year
AMP Ohio OMEGA Joint Venture 5
Principal Outstanding, 12-31-05		$2,340,190
Interest Rate:		Variable
Loan Term:		30 years
Issue II - North Main Street Waterline
Principal Outstanding, 12-31-05		$524,909
Interest Rate:		0%
Loan Term:		20 years
2005 General Obligation - Bond
Principal Outstanding, 12-31-05		$5,100,000
Interest Rate:		2.60% - 3.70%
Loan Term:		12 years