TOWN OF ECLECTIC.ALABAMA FINANCIALSTATEMENTS  FORTHE YEAR ENDED SEPTEMBER 30, 2013    TOWN OF ECLECTIC, ALABAMA  SEPTEMBER 30, 2013 TABLE OF CONTENTS Independent Auditors' Report... FINANCIAL STATEMENTS Statement of Net Position. Statement of Activities  PAGE  Balance Sheet-Goyemmental Funds.  Reconciliation oft the Balance Sheet of Governmental Funds to the Statement ofNet Position.. ..6 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds. ..7 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances  ofGovernmental Funds to the Statement of Activities Statement ofNet Position - Proprietary Fund.  Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund..  10  Statement of Cash Flows - Proprietary Fund. Notes to Financial Statements  13  REQUIRED SUPPLEMENTARY INFORMATION  Statement of Revenues, Expenditures, and Changes in Fund Balances  Budget and Actual - General Fund  32 33  Employees' Retirement System of Alabama - Schedule ofl Funding Progress.    Warren Averett CPAS AND ADVISORS  3815 Interstate Court Montgomery, AL: 36109 334.271.2200 warrenaveret.com  Independent Auditors' Report  Honorable Mayor and Members of The Town Council Town ofE Eclectic, Alabama Report on thel Financial Statements  We have audited the accompanying financial statements of the governmental activities, the business- type activities and each major fund, of the Town of Eclectic, Alabama (the Town) as of September 30, 2013 and for the year then ended, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether 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 entity'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 ofe expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropnateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation of the We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for  the financial statements are free of material misstatement.  financial statements. 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 business-type activities and each major fund of the Town as of September 30, 2013, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.  Other Matters  Required Supplementary Information  Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the budgetary comparison information and schedules of pension funding progress on pages 32 and 33 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.  Wanen lvet, LLC  Montgomery, Alabama January 14,2016  2    FINANCIALSTATEMENTS    TOWN OF ECLECTIC, ALABAMA STATEMENT OF NETI POSITION SEPTEMBER: 30,2013  Governmental Business-type  Activities  Activities  Total  ASSETS Cash and cash equivalents Receivables, net Internal balances Inventory Prepaid expenses Deferred debt expense, net Claims receivable Note receivable Capital assets not being depreciated: Land Capital assets net ofa accumulated depreciation: Buildings Machinery and equipment Utility system Land improvements TOTAL. ASSETS LIABILITIES Accounts payable Accrued interest payable Other current liabilities Customer deposits Line of credit Noncurrent liabilities: Due within one year Due in more than one year TOTALI LIABILITIES NETI POSITION Net investment in capital assets Restricted for: Public works Municipal court Unrestricted TOTAL. NETPOSITION  $ 164,636 $ 549,320 $ 713,956  88,947 (16,694) 20,127 59,673  106,226 16,694 36,208 8,983 262,774 4,473 16,391 190,650 29,076 1,714,631  195,173 36,208 29,110 59,673 262,774 4,473 481,981 908,991 972,464 1,714,631 128,289  465,590 718,341 943,388 128,289  - - 2,572,297 $ 2,935,426 $ 5,507,723  LIABILITIES AND NET POSITION  $  17,878 $ 16,433 28,485 111,307 215,613 1,527,732 1,917,448 584,183 6,797 31,209 32,660 654,849  27,970 $ 6,058 70,052 36,614 162,155 302,849 1,755,902  45,848 16,433 34,543 70,052 111,307 252,227 1,689,887 2,220,297 2,340,085 6,797 31,209 909,335 3,287,426  876,675 2,632,577  TOTAL: LIABILITIES AND NETI POSITION See accompanying notes to financial statements.  9 2,572,297 $ 2,935,426 $ 5,507,723  3    TOWN OF ECLECTIC, ALABAMA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER: 30, 2013  Program Revenues Operating  Capital Grants and  Charges for Grants and Services  Function/Programs Primary Government Govemmental activities: General goverment Public safety Public works Public welfare  Expenses  Contributions Contributions  S 393,956 S 229,078 S  S 7,991 26,145 34,136  762,811 294,965 124,513 90,495 1,666,740 552.261 General Revenues Property taxes Sales taxes Other taxes Alcoholic beverage taxes Interest income Miscellancous revenue Total general revenues Change in net position Net position beginning Net position-ending  263,196 79,794 20,243 592,311 657.892  229,829 229,829  Interest and fiscal charges on long-lerm debt Total governmental activities Business-type activities: Eclectic Water and Sewer Fund Total primary govemment  2,219,001 S 1,250,203 $  34,136 S 229,829    Net (Expense) Revenue and Changes in Net Position Activities  Governmental Business-type Activities  Total  $ (164,878) $ (491,624) 40,803 (104,270) (90,495) (810,464)  (164,878) (491,624) 40,803 (104,270) (90,495) (810,464) 105,631 (704,833) 72,771 872,518 29,076 22,393 769 310,476 1,308,003 603,170 2,684,256  105,631 105,631  (810,464) 72,771 872,518 29,076 22,393 199 47,702 1,044,659 234,195 420,654  570 262,774 263,344 368,975 2,263,602  654,849 $ 2,632,577 $ 3,287,426  See accompanying notes to financial statements.    TOWN OF ECLECTIC, ALABAMA  BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER: 30,2013  Total Funds 88,947 20,127 7,766  General Fund 86,878 20,127 7,766  Street Fund  Municipal Governmental  Court  ASSETS Cash and cash equivalents Receivables Prepaid expenses Due from other funds TOTAL ASSETS  $ 107,141 $ 5,862 $ 51,633 $ 164,636  935  1,134  221,912 $ 6,797 $ 52,767 $ 281,476  LIABILITIES AND FUND BALANCES  LIABILITIES Accounts payable Other current liabilities Due to other funds Line ofcredit TOTALLIABILITIES FUND BALANCES Nonspendable: Prepaid expenses Restricted: Public works Municipal court Unassigned TOTAL FUND BALANCES TOTALI LIABILITIES. AND FUND BALANCES  $ 8,886 $ 23,685 16,694 111,307 160,572  $  8,992 $ 17,878 4,800 7,766 21,558  28,485 24,460 111,307 182,130  20,127 41,213 61,340  20,127 6,797 31,209 41,213 99,346  6,797 6,797  31,209 31,209  221,912 $ 6,797 $ 52,767 $ 281,476  See accompanying notes to financial statements.    TOWN OF ECLECTIC, ALABAMA TO THE STATEMENT OF NETI POSITION  RECONCILIATION OF THE. BALANCE HETOFCOVERMMENTAL FUNDS  SEPTEMBER 30, 2013  Differences in amounts reported for governmental activities in the Statement of! Net Position.  Total fund balances governmental funds Capital assets used in governmental activities are not financial resources and, therefore, are not reported in  $  99,346  the governmental funds.  2,255,608  Deferred debt expenses are allocated over their estimated useful lives and are shown net ofamortization expense as an asset Long-term liabilities, including bonds payable, and accrued interest are not due and payable in the current period and, therefore, are: not reported in the governmental funds. Balances at September 30, 2013, were: Bonds, leases and notes payable Accrued interest Compensated absences  in the Statement ofNet Position.  59,673  (1,731,098) (16,433) (12,247)  Total long-term liabilities  (1,759,778) 654,849  Net position of governmental activities  See accompanying notes to financial statements.    TOWN OF ECLECTIC, ALABAMA FOR THE YEAR ENDED SEPTEMBER30,; 2013  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES  GOVERNMENTAL FUNDS  Total Funds $ 996,758 228,759 267,810 271,001 90,488 29,920 199 1,884,935  General Fund 987,625 $ 227,624 267,810 271,001 33,554 28,177 194 1,815,985  Street Funds 9,133 $ 1,135  Municipal Governmental  Court  REVENUES Taxes Licenses and permits Intergovemmenta. Charges for services Fines and forfeitures Miscellaneous revenues Interest Total revenues EXPENDITURES Current operations: General government Public safety Public works Public welfare Debt service: Principal retirement Interest charges Total expenditures Excess (deficiency) ofr revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out  56,934 1,743 5 58,682 45,181  10,268  345,023 684,976 235,199 324,221 164,345 91,078 1,844,842 (28,857) 38,766 38,766 9,909 51,431 61,340 $  2,710  392,914 684,976 235,199 324,221 164,345 91,078 1,892,733 (7,798) 38,766 (38,766)  2,710 7,558 (31,000) (31,000) (23,442) 30,239  45,181 13,501 (7,766) (7,766) 5,735 25,474  Total other financing sources (uses) Net change ini fund balances FUND BALANCES-1 BEGINNING FUND BALANCES-ENDING  (7,798) 107,144  6,797 $ 31,209 $ 99,346  See accompanying notes to financial statements.    TOWN OF ECLECTIC, ALABAMA FOR THE YEAR ENDED SEPTEMBER 30, 2013  RECONCILIATION OF THE: STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND  BALANCES OF GOVERNMENTAL FUNDS TOTHES STATEMENT OF ACTIVITIES  Differences in amounts reported for Governmental Activities in the Statement of Activities.  Net change ini fund balances- total governmental funds  $ (7,798) 246,198 (184,811)  Capital outlays, reported as expenditures in governmental funds, is shown as capital assets in the Statement ofNet Position. Depreciation expense on governmental capital assets included int the governmental activities in the Statement of Activities. Donations of capital assets increase net assets in Statement ofl Net Position but do not appear in the governmental funds because they Repayment of long-term debt is reported as an expenditure in governmental funds, but a reduction of long-term liabilities in the  are not financial resources.  16,000  Statement ofl Net Position. General obligation bonds Notes payable Claims and judgments Total repayments  100,000 29,345 35,000  164,345  Governmental funds report the effect ofi issuance costs, premiums and discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. 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.  Amortization  (3,315)  Compensated absences Accrued interest Additional expenses  2,992 584  3,576 5 234.195  Change in net position of governmental activities  See accompanying notes to financial statements.    TOWN OF ECLECTIC, ALABAMA STATEMENT OF NET POSITION PROPRIETARY FUND SEPTEMBER 30, 2013  Eclectic Waterand Sewer Fund $ 549,320 106,226 36,208 8,983 16,694 262,774 4,473 984,678 16,391 290,865 319,469 2,982,532 (1,658,509) 1,950,748 2,935,426 27,970 6,058 3,922 32,692 70,052 140,694 162,155 302,849 1,755,902 876,675 $ 2,632,577  ASSETS CURRENT ASSETS Cash and cash equivalents Receivables, net Inventory Prepaid expenses Due from other funds Claims receivable Note receivable Total current assets CAPITAL. ASSETS Land Buildings Machinery and equipment Utility system Less accumulated depreciation TOTAL. ASSETS LIABILITIES CURRENT LIABILITIES Accounts payable Other liabilities Compensated absences Notes payable Customer deposits Total current liabilities NONCURRENT LIABILITIES Notes payable TOTALLIABILITIES NET POSITION Neti investment in capital assets Unassigned TOTALI NET: POSITION  Total capital assets, net ofaccumulated depreciation  See accompanying notes to financial statements.    TOWN OF ECLECTIC, ALABAMA FOR THE YEAR ENDED SEPTEMBER, 30, 2013  STATEMENT OF REVENUES, EXPENSES, AND CHANGES INI NET POSITION  PROPRIETARY FUND  Eclectic Waterand Sewer Fund  643,135 14,757 657,892  OPERATING REVENUES Charges for services: Water revenues Fee revenues Total operating revenues OPERATING EXPENSES Operational and maintenance Salaries and wages Water purchases Depreciation Total operating expenses OPERATING INCOME Interest income Interest expense Other income  Personnel, operations and maintenance, and utilities:  191,548 124,425 132,749 90,917 539,639 118,253 570 (12,622) 262,774 250,722 368,975 2,263,602 2,632,577  NONOPERATING REVENUES (EXPENSE)  Total nonoperating revenues (expense)  Change in net position  TOTALNET POSITION-BEGINNING TOTALNET POSITION-ENDING  See accompanying notes to financial statements.  10    TOWN OF ECLECTIC, ALABAMA STATEMENT OF CASH FLOWS PROPRIETARY FUND FOR THE YEAR ENDED SEPTEMBER: 30, 2013  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  Eclectic Watera and Sewer Fund $ 661,630 (333,061) (126,020) 202,549  CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers for goods and services Payments to employees for services Net cash provided by operating activities  CASH FLOWS FROM NONCAPITAL FINANCING  ACTIVITIES  Cash payments to other funds FINANCING ACTIVITIES Principal payments on capital debt Interest paid on capital debt  (29,406)  CASH FLOWS FROM CAPITAL. AND RELATED  (30,803) (12,622) (43,425) 570 130,288 419,032 549,320  Net cash used by capital and related financing activities CASH FLOWS! FROM INVESTING ACTIVITIES  Interest income  NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR  See accompanying notes to financial statements.  11    TOWN OF ECLECTIC, ALABAMA STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED SEPTEMBER. 30,2013  PROPRIETARY FUND  RECONCILIATION OF OPERATING INCOME TO NET CASH  PROVIDED BY OPERATING ACTIVITIES  Eclectic Water and Sewer Fund $ 118,253  Operating income Depreciation  Adjustments to reconcile operating income to net cash provided by operating activities: Decrease in accounts receivable Decrease in note receivable Decrease in prepaid expenses Increase in inventory Decrease in accounts payable Increase in compensated absences Increase in customer deposits Net cash provided by operating activities  90,917 1,237 995 142 (5,052) (5,655) 206 1,506 $ 202,549  See accompanying notes to financial statements.  12    TOWN OF ECLECTIC, ALABAMA NOTES TOI FINANCIAL STATEMENTS SEPTEMBER 30, 2013  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Reporting Entity  The Town of Eclectic (the Town) was incorporated under the laws of the State of Alabama in 1907 and operates under an elected Mayor-Council form of government as required by State of Alabama Legislative Act No. 73-618 approved August 28, 1973. The Town provides the following services: public safety (police and fire), highways and streets, sanitation and utilities (water and sewer), health and social services, public improvements, planning and zoning, recreation and general administrative services.  Government-Hide and Fund Financial Statements  The basic financial statements consist of the government-wide financial statements and fund financial statements. Both sets of statements distinguish between governmental and business-type activities. Government-wide financial statements are comprised of the statement of net position and the statement of activities and reports information on all of the non-fiduciary activities of the primary government and its component unit. For the most part, the effect of inter-fund activity has been removed from these statements. The exception to this is interfund services provided and used which are eliminated in the consolidation process. Governmental activities, which normally are supported by taxes and intergovermmental revenues, are reported separately from business-type activities, which rely to a The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues are classified into three categories: charges for services, operating grants and contributions, and capital grants and contributions. Charges for services refer to direct recovery from customers for services rendered. Grants and contributions refer to revenues restricted for specific programs whose use may be restricted further to operational or capital items. The general revenues section displays revenue collected that help support all functions of government and contribute to the The fund financial statements follow and report additional and detailed information about operations for major funds individually and nonmajor funds in the aggregate for governmental funds. A reconciliation is provided that converts the results of governmental fund accounting to the government-wide presentations.  significant extent on fees and charges for support.  change int the net position for the fiscal year.  13    TOWN OF ECLECTIC, ALABAMA NOTES' TO FINANCIAL STATEMENTS SEPTEMBER 30,2 2013  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus, Basis ofAccounting, and Financial Statemen! Presentation  The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis ofaccounting as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when al liability is incurred, regardless oft the timing of related cash flows. Property taxes are recognized as revenues in the year received or when an enforceable legal claim exists, whichever comes first. Grants and similar items are recognized as revenue as soon as all eligibility 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 oft the current period, considered to be sixty days for property taxes and ninety days for all other revenue. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment  requirements imposed by the provider have been met.  is due.  The Town reports the following major governmental funds:  General Fund - This is the Town's primary operating fund. It accounts for all financial resources ofthe general government, except those required to be accounted for in another fund. Street Fund - This is a special revenue fund in which the Town accounts for the gasoline taxes reçeived that are restricted to the maintenance and capital improvements ofthe' Town's streets. Municipal Court Fund - This is a special revenue fund in which the Town accounts for court  fines and bonds received.  The Town reports the following major enterprise fund:  Eclectic Water and Sewer Fund - Accounts for water and sanitary sewer services provided to  the residents ofthe" Town.  Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues oft the enterprise funds and of the internal service funds are charges to customers for sales and services. Operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this  definition are reported as nonoperating revenues and expenses.  14    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER: 30, 2013  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Stewardship, Compliance, and. Accountability  An annual budget is adopted for the Town's general fund. Under state law, the Mayor submits the annual budget to the Council for consideration and approval no later than October 1. Such budget is based on expected expenditures by program. and estimated resources by source. The budget is prepared using the modified accrual basis of accounting. Revisions to the budget must be approved by the Council. All  annual appropriations lapse at fiscal year-end. Management Estimates and. Assumptions  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date oft the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results  could vary from estimates used. Assets, Liabilities, and Equity Cash and Cash Equivalents  Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities oft three months or less from the date of acquisition.  Receivables and Payables  Activity between funds that are representative of ending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of inter-fund loans) or "advances to/from other funds" (i.e., the noncurrent portion of inter-fund loans). Any residual balances outstanding between the governmental activities and business-type activities are  reported in the government-wide financial statements as "internal balances." All receivables are: shown net of any applicable allowance for uncollectibles.  Property taxes are assessed on October 1 and levied on the subsequent October 1 for the fiscal year beginning on the levy date, at which time a lien is attached. These taxes are due and payable on October 1 (levy date) and delinquent after December 31 in each year (except with respect to motor vehicles, which have varying due dates), after which a penalty and interest are required to be charged. Ifreal property taxes are not paid by the June 15 following the due date, a tax sale is required to be held. Revenue is recognized in the year when the taxes are levied and collected. The taxes are  collected by the Elmore County tax collector and remitted to the Town.  15    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Assets, Liabilities, and Equity (Continued) Inventories and Prepaid Items  Inventories are valued at cost using the average cost method. The costs of governmental fund type inventories are recorded as expenditures when consumed rather than when purchased.  Inventories are summarized as follows:  Governmental Business-type Activities $  Activities  Total  Materials and supplies Capital Assets  $ 36,208 $ 36,208  Capital assets, purchased or constructed, are reported at cost or estimated historical cost. Donated Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life greater than two years. The Town did not report infrastructure acquired prior to The cost of normal maintenance and repairs that do not add to the value of the asset or materially Capital assets are depreciated using the straight-line method over the following estimated useful lives:  capital assets are recorded at estimated fair value at the date of donation.  October 1, 2003.  extend assets' lives are not capitalized.  Buildings Improvements Machinery and equipment Utility system Infrastructure  30 years 20 years 7-20 years 50 years 50 years  16    TOWN OF ECLECTIC, ALABAMA NOTES TOI FINANCIAL STATEMENTS SEPTEMBER: 30, 2013  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Assets, Liabilities, and Equity (Continued) Compensated Absences subsequent periods.  The Town allows employees to accumulate vacation and sick leave up to certain limits for use in  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, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and sO will not be recognized as an outflow of resources (expenselexpenditure) until that time. The Town did not have 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, deferred inflows of resources, represents an acquisition oft net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town did not have any items that qualified for  any items that qualified for reporting in this category.  reporting in this category. Long-Term Obligations  Int the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life ofthe bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the 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 debt service expenditures.  term of the related debt.  17    TOWN OF ECLECTIC, ALABAMA NOTES TOFINANCIAL STATEMENTS SEPTEMBER 30, 2013  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Assets, Liabilities, and Equity (Continued)  Lease Obligations  Capital lease obligations are stated at the original fair market value of leased assets capitalized, less payments since the inception oft the lease discounted at the implicit rate ofi interest in the lease. Also, in the year an asset is acquired by capital lease, the expenditure for the asset and the offsetting amount of the financing source are reflected in the fund financial statements in the statement of revenues, expenditures, and changes in fund balances. Capital lease obligations of proprietary funds and governmental activities in the govemment-wide financial statements and the cost of assets sO acquired  are refiected in the accounts oft those funds and statements.  Fund Equity  The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable - This classification includes amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained Restricted - This classification includes amounts that can be spent only for specific purposes because of constitutional provisions, charter requirements or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or Committed - This classification includes amounts that can be used only for specific purposes determined by a formal action of the Town Council. The Town Council is the highest level of decision making authority for the Town. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the Town Council. Assigned - This classification includes amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the Town's adopted policy, only the Town Council may assign amounts for specific purposes. Unassigned-Thisclassification includes all other spendable amounts.  intact.  regulations ofc other governments.  18    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013  1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  Assets, Liabilities, and Equity (Continued) Fund Equity (Continued)  When an expenditure isi incurred for purposes for which both restricted and unrestricted fund balance is available, the' Town considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Town considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions.  2. CASH AND CASH EQUIVALENTS Custodial Credit Risk. - Deposits  Custodial credit risk is the risk that in the event ofa bank failure, the Town's deposits may not be returned As of September 30, 2013, none of the Town's bank balance of $775,300 was exposed to custodial credit risk. All of the Town's bank balances are insured by the Federal Deposit Insurance Corporation (FDIC) and the Security for Alabama Funds Enhancement (SAFE) Program. The SAFE Program is a multiple financial collateral pool administered by the State Treasurer according to State of Alabama statute.  toit. The Town does not have a deposit policy for custodial credit risk.  3. RECEIVABLES  Receivables as of September 30, 2013, for the government'si individual major funds are as follows:  Eclectic Municipal Water and Court Sewer Fund $ 1,134 112,483 1,134 112,483 6,257  General Fund 77,136 $ 8,638 1,104 86,878 86,878 $  Street Fund 835 $ 100 935  Total $ 77,971 122,255 1,204 201,430 6,257  Taxes Accounts Intergovermental. Gross receivables Less allowance for uncollectable Total receivables  935 $ 1,134 $ 106,226 $ 195,173  19    TOWN OF ECLECTIC, ALABAMA NOTES TOI FINANCIAL STATEMENTS SEPTEMBER 30, 2013 4. CAPITAL ASSETS  Capital asset activity for the year ended September 30, 2013, was as follows:  Primary Government Governmental activities: Capital assets, notl being depreciated: Land Construction inj progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Machinery and equipment Land improvements Total capital assets, being depreciated Less accumulated depreciation for: Buildings Machinery and equipment Landi improvements Total accumulated depreciation Total capital assets, being depreciated, net  Beginning Balance  Ending Balance 465,590 465,590 799,207 3,080,642 321,318 80,866 193,029  Increases Decreases Transfers  449,590 $ 16,000 $ 23,229 472,819 539,780 3,063,020 321,318 3,924.118 63,250 1.973,503 181,963 2,218,716 1,705,402  $ (23,229) (23,229) 23,229 35.281  16,000 236,198 10,000 246,198 17,616 156,129 11,066 184.811 61,387  (27,659) (27,659) (27,659) (27.659)  58,510 4,201,167 35,281 2,137,254 35.281 2,411,149 23,229 1,790,018 $2,255,608  Govermental activities capital assets, net $2,178,221 $ 77,387 $  20    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013  4. CAPITAL ASSETS (Continued) Primary Government (Continued)  Beginning Balance $ 16,391 $ 56,718 73,109 290,865 354,750 2,925,814 3,571,429 82,839 312,232 1,207,802 1,602,873 1,968,556  Ending Balance $ 16,391 16,391 290,865 319,469  Increases Decreases Transfers  Busines-ypeactivtis: Capital assets, not being depreciated: Land Construction inj progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Machinery and equipment Utility system Total capital assets, being depreciated Less accumulated depreciation for; Buildings Machinery and equipment Utility system Total accumulated depreciation Total capital assets, being depreciated, net  (56,718) (56,718) (35,281) 56,718 2,982,532 21,437 3,592,866 (35,281)  17,376 13,442 60,099 90,917 (90,917)  100,215 290,393 1,267,901  (35,281) 1,658,509 56,718 1,934,357 $1,950,748  Business-type activities capital assets, net $2,041,665 $ (90,917) $  Depreciation expense was charged to unctionsyprograms oft the primary government as follows:  Governmental activities: General government Public safety Public works Cultural and recreation  $  6,837 87,836 59,766 30.372 184.811 90.917  Total depreciation expense - governmental activities  Business-type activities  21    TOWN OF ECLECTIC, ALABAMA NOTES TOI FINANCIAL STATEMENTS SEPTEMBER 30, 2013  5. INTERFUND BALANCES  Interfund balances are generally used to meet cash demands necessary to pay operating expenditures. Except for amounts due from Enterprise and Internal Service Funds, these amounts should be repaid during the next fiscal year. The composition ofi interfund balances as of September 30, 2013, is shown below.  Due to/from other funds: Receivable Fund General  Payable Fund General Municipal Fund Court $ $ 7,766 $ 16,694 $ 16,694 $ 7,766 $ 24,460  Total 7,766 16,694  Eclectic Water and Sewer Fund  6. SHORT-TERM DEBT  The Town maintains a $200,000 line of credit to support operations pending collection and receipt of outstanding Town revenue. Interest is paid on outstanding balances at 3.85%. Short-term debt activity for  the year ended September 30, 2013, was as follows:  Beginning balance Issues Redemptions Ending Balance  $  145,710 217,402 (251,805) 111,307  $  22    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIALSTATEMENTS SEPTEMBER 30, 2013 7. LONG-TERM DEBT  Long-term debt activity for the year ended September 30, 2013, was as follows:  Beginning Balance 1,335,000 $ 525,443 15,239 35,000 1,910,682 225,650 3,716 229,366  Ending Balance 496,098 12,247  Due Within One Year 103,366 12,247 215,613 32,692 3,922 36,614  Additions Reductions  Governmental activities: General obligation bonds Notes payable Compensated absences Claims and judgments Governmental activity long-term liabilities Business-type: activities: Notes payable Compensated absences Business-type: activity long-term liabilities Total long-term debt General Obligation Bonds  (100,000) $ 1,235,000 $ 100,000  (29,345) (15,239) (35,000) (179,584) 1,743,345 (30,803) (3,716) (34,519)  12,247 12,247  194,847 3,922 198,769  3,922 3,922  2,140,048 S 16,169 $ (214,103) $ 1,942,114 $ 252,227  The Town issues general obligation bonds to provide for the acquisition and construction of major capital projects. General obligation bonds are direct obligations and pledge the full faith and credit of the Town.  The current outstanding balances are as follows:  $1,200,000 Series 1996 General Obligation Warrants due ins annual installments of $40,000 to $85,000 through August 15, 2017, with a maximum principal of $85,000 due in fiscal year 2017, interest at $1,210,000 Series 2007 General Obligation Refunding Warrants due ins annual installments of$10,000 to $80,000 through August 1, 2030, with a maximum principal of $80,000 due in fiscal year 2030,  4.00%.  $ 250,000  interest at 4.00%1 to 4.70%. Total general obligation bonds  985,000 1,235,000  23    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013  7. LONG-TERM DEBT (Continued) General Obligation Bonds (Continued)  The following schedule illustrates debt service to maturity for the general obligation bonds at September  30,2013:  Governmental Activities Interest  Principal  Total 155,525 156,213 151,700 82,188 423,200 424,665 166,045  Year ending September 30: 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029-2030 Totals Notes. Payable  100,000 $ 54,565 $ 154,565  105,000 110,000 110,000 45,000 270,000 340,000 155,000  50,525 46,213 41,700 37,188 153,200 84,665 11,045  $1,235,000 $ 479,101 $1 1,714,101  The Town has received funding from local banks to provide for the acquisition of capital assets. The  current outstanding balances are as follows: Governmental activities:  Note payable with Trustmark used to fund costs related to the purchase of the municipal building. The note is due in monthly payments of $854 through December 25, 2013 and has an Note payable with First Community Bank of Central Alabama used to fund costs related to the purchase of two fire trucks. The note is due in annual payments of $46,631 through July 14, 2025 and has an interest rate of4.50%. The note is secured by two fire trucks.  interest rate of5.95%. The note is secured by the municipal building.  $ 77,358  418,740 496,098  Business-type activities:  Note payable with Trustmark in the amount of $275,000. The note is duei in monthly payments of$3,619 through December 9, 2015 and has an interest rate of5.95%. The note is secured by  the pledge ofr revenues derived from the operations ofthes system.  $ 194,847  24    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013  7. LONG-TERM DEBT (Continued) Notes Payable (Continued)  The following schedulei illustrates debt service to maturity for the notes payable at September! 30, 2013:  Governmental Activities Interest  Principal  Total  Year ending September 30: 2014 2015 2016 2017 2018 2019-2023 2024-2025 Totals  103,366 $ 21,479 $ 124,845  27,360 30,144 31,546 32,966 188,427 82,289  19,271 16,487 15,085 13,666 44,729 5,485  46,631 46,631 46,631 46,632 233,156 87,774  496,098 $ 136,202 $ 632,300 Business-type Activities Interest  Principal  Total  Year ending September 30: 2014 2015 2016 Totals  a 32,692 $ 10,734 $ 43,426  34,696 127,459  8,730 1,851  43,426 129,310  194,847 $ 21,315 $ 216,162  8. OPERATING LEASES  The Town is obligated under an operating lease agreement for copiers through August 30, 2015. The future  minimum lease payments under these lease agreements are:  Year ending September 30: 2014 2015  $   7,191 6.592 13.783  Present value ofminimum lease payments  Total rental expense for the above mentioned lease is $7,191 for the year ended September 30, 2013.  25    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013  9. EMPLOYEES RETIREMENT PLAN Employee Pension Plan  The Town has a defined benefit pension plan covering substantially all employees. The pension plan is funded as required by applicable statutes, ordinances, or as a percentage of eligible salaries and/or based upon actuarial valuations. The plan provides retirement, disability, and death benefits, and annual cost-of- living adjustments to plan members and beneficiaries. The plan is an agent multiple-employer retirement  plan. The agent for the plan is the Employees' Retirement System of Alabama.  Plan. Description  The Employees' Retirement System of Alabama (ERS) is an agent multiple-employer public employee retirement system. The ERS was established on October 1, 1945, under the provisions of Act 515, Acts of Alabama 1945, for the purpose of providing retirement allowances and other specified benefits for state employees, state police, and, on an elective basis, all cities, counties, towns, and quasi-public organizations. The responsibility for the general administration and operations of the ERS is vested in the ERS Board of Substantially all employees are members of the ERS. Membership is mandatory for covered or eligible employees of the Town of Eclectic. The ERS provides retirement benefits as well as death and disability benefits as established by state law. The retirement benefits are established by Title 36, Chapter 27 of Alabama State Law and must be amended by statute. Benefits vest after 10 years of creditable service. Vested employees may retire with full benefits at age 60 or after 25 years of service, regardless of age (30 years of service for those units that have not elected 25 years retirement). Retirement benefits are caiculated by two methods with the retiree receiving payment under the method that yields the highest monthly benefit. The two methods are (I) Minimum Guaranteed, and (2) Formula, of which the Formula method usually produces the highest monthly benefit. Under the formula method, upon service retirement, ar member receives a retirement allowance equal to 2.0125% of the member's average final compensation (best three of last ten years) multiplied by the number of years of creditable service. At retirement, a member receives one additional year of creditable service in determining the retirement allowance for each five years of service as a full-time certified firefighter, police officer, or correctional officer. Disability benefits are calculated in the same manner as regular retirement benefits. A pre-retirement death benefitin the amount of the annual salary for the fiscal year preceding death is provided to plan members. The Retirement System of Alabama issues a publicly available financial report that includes financial statements and required supplementary information for the Employees' Retirement System of Alabama. That report may be obtained by writing to The Retirement System of Alabama, 135 South Union Street  Control. Authority to amend the plan rests with the Legislature of Alabama.  Montgomery, Alabama 36130-2150.  26    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER: 30,2013  9. EMPLOYEES RETIREMENT PLAN (Continued) Contributions. Required and Contributions. Made  The actuary has computed, as of the date of the latest actuarial valuation (September 30, 2012), the estimated present value of benefits payable to retired members, beneficiaries, and active members. The actuarial valuation is prepared using the entry age method. The present value of all expected benefits payable to the present group of members and beneficiaries is calculated by adding the present value oft the expected benefits payable to the active members to the present value of the expected future payments to As required by statute, the ERS funding policy provides for employer contributions at actuarially determined rates, expressed as a percent of annual covered payroll, in amounts sufficient to accumulate assets to pay benefits when due. The employer contributions required to support the benefits of each system are determined following a level funding approach and consist ofa normal contribution, an accrued liability contribution, a pre-retirement death benefit contribution, and a portion to finance administrative The required contribution rate is 5% for regular members and 6% for certified law enforcement, correctional officers, and firefighters. For the fiscal year ended September 30, 2012, the required employer  retired members and beneficiaries.  costs.  contribution rate was 5.65% of annual covered compensation.  Annual Pension Cost  1. Current-Year Contribution Information  For the year ended September 30, 2013, the Town'sa annual pension cost contributed by employees was $35,128 and the Town contributed $31,208, or a total of $66,336. Contributions were made in accordance with actuarially determined contribution requirements through an actuarial valuation  performed at September 30, 2012. 2. Actuarial Assumptions and Methods  Valuation date Actuarial cost method Asset valuation method Amortization method Remaining amortization period Period closed/open Actuarial assumptions: Projected salary increases Cost of living increases *Includes inflation at 3.00%.  September 30, 2012 Entry Age 5-Year Smoothed Market* Level Percent Open 30 years Open 3.759-7.759* None  Ultimate Investment: rate ofreturn (discount rate) 8%*  27    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013  9. EMPLOYEES RETIREMENT PLAN (Continued)  Annual Pension Cost (Continued)  2. Actuarial Assumptions and Methods (Continued)  In accordance with GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, a pension liability of $0 was calculated at the transition date. Trend information for the most current valuation year and the two preceding years is as follows:  Fiscal Year Ending 9/30/2010 9/30/2011 9/30/2012  Annual Pension Cost (APC) $ 19,992 20,480 24,388  Percentage ofAPC Contributed 100.0% 100.0% 100.0%  Net Pension Obligation (NPO) $  3. Funding Status  The funding status oft the plan as ofthe most recent actuarial valuation is as follows:  (b-a) Accrued Liability (UAL)  (b) Entry Age Unfunded Accrued Liability  (b-a)/e UALasa Payroll  Actuarial (a) Actuarial Actuarial  (a/b) Funded Ratio  (c) Annual Covered Percentage of Payroll  Valuation Date  Value of Assets  9/30/12'2 $ 783,440 $ 617,735 $ (165,705) 126.8% $ 551,880 (30.0%) 'Reflects the impact of Act 2011-676, which increases the member contribution rates by 2.25% beginning October 1, The schedule of funding progress, presented as required supplementary information following the notes to financial statements, present multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.  2011 and! by an additional 0.25%5 beginning October 1,2012. 2 Reflects changes toi interest smoothing technology.  28    TOWN OF ECLECTIC, ALABAMA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2013 10. RISK MANAGEMENT  The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Town has purchased general liability insurance through a commercial insurance carrier. Coverage provides up to $1,000,000 per claim for a maximum total coverage of$3,000,000. The Town also purchased commercial insurance for other risks of loss, including property The Town has worker's compensation insurance through the Municipal Workers Compensation Fund. The Town has employee health coverage through the Local Government Health insurance Plan (LGHIP) administered by the State's Employees' Health Insurance Board. LGHIP is a self-insured health insurance program funded from the premiums of the participating local government units and their subscribers. LGHIP provides group health insurance for employees for local government units, certain organizations, and associations. Monthly premiums are determined by the plan's actuary and are based on past claims  and casualty insurance.  Coverage is provided up to $1,000,000 for each injury by accident or disease.  experience.  11. CONTINGENT LIABILITIES  Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, ifany, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the Town expects such amounts, if The Town is a defendant in various lawsuits whose outcome is not presently determinable. In the opinion of the Town's counsel, the resolution of these matters will not have a material adverse effect on the  any, to be immaterial.  financial condition of the' Town. 12. BOND COVENANT  The Town was in violation of a covenant contained in the Series 1996 General Obligation Warrants for fiscal year 2013. The covenant states that the Town will furnish the Alabama Water Pollution Control Authority (Authority) a copy of its audited financial statements no later than one hundred eighty days The Town contacted the Alabama Department of Environmental Management (ADEM) regarding this violation. ADEM responded stating that although they would not waive this requirement, the Authority  following the close ofthe fiscal year.  does not plan on taking any action on this violation.  29    TOWN OF ECLECTIC, ALABAMA NOTES TOI FINANCIAL STATEMENTS SEPTEMBER 30, 2013  13. SUBSEQUENT EVENTS  On December 1,2014, the Town purchased property adjacent to Town Hall in the amount ofs $49,000. The On December 4, 2014, the Town borrowed $155,000 from First Community Bank of Central Alabama. The note is due in monthly payments of $1,171 through December 4, 2029, and has an interest rate of 4.25%. The proceeds of the note were used to pay off the original note with Trustmark and to reduce the line of Subsequent to year end, the Eclectic Water and Sewer Fund received settlement payments related to the case against Harold Whatley and Donald Strickland. These payments began on September 4, 2014 and continued through June 4, 2015. A claims receivable is being recorded in the amount of $262,774, which represents the total settlement received net of estimated legal expenses. This amount is reported as other income on the Eclectic Water and Sewer Fund Statement of Revenues, Expenses, and Changes in Net  purchase was financed through the Town's line ofo credit.  credit. The note iss secured by the municipal building.  Position.  14. EFFECT OF NEW PRONOUNCEMENTS  Management has not currently determined what, ifany, impact implementation oft the following statements Statement No. 67, Financial Reporting of Pension Plans. The objective of this Statement is to improve financial reporting of government pension plans. Requirements of this Statement are effective for financial GASB Statement No. 68, Accounting and Financial. Reporting for Pensions. The objective oft this Statement is to improve accounting and financial reporting of government pensions. Also, it improves information provided by government employers about financial support for pensions that is provided by other entities. Requirements ofthis Statement are effective for financial statements whose fiscal year begins after. June 15, GASB Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement will improve accounting for mergers and acquisitions among state and local governments by providing guidance specific to the situations and circumstances encountered within the governmental environment. Requirements ofthis Statement are effective for financial statements whose fiscal year begins  may have on the financial statements ofthe" Town.  statements whose fiscal year begins after. June 15,2013.  2014.  after December 15, ,2013.  30    TOWN OF ECLECTIC, ALABAMA NOTES TOI FINANCIAL STATEMENTS SEPTEMBER. 30, 2013  14. EFFECT OF NEW: PRONOUNCEMENTS (Continued)  GASB Statement No. 70, Accounting and Financial Reporting, for Non-exchange Financial Guarantees. This Statement requires a government that extends a non-exchange financial guarantee to recognize a liability when qualitative factors and historical data, if any, indicate that is more likely than not that the government will be required to make a payment on the guarantee. This Statement requires a government that has issued an obligation guaranteed in a non-exchange transaction to report the obligation until legally released as an obligor. This Statement specifies the information required to be disclosed by governments that extend non-exchange financial guarantees, effective for reporting periods beginning after June 15, GASB Statement No. 71, Pension Transition of Contributions Made Subsequent to Measurement Date. The objective of this Statement is to address an issue regarding application of transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or non-employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. Requirements oft this Statement are effective for financial statements whose  2013.  fiscal year begins after. June 15,2014.  31    REQUIRED SUPPLEMENTARY INFORMATION    TOWN OF ECLECTIC, ALABAMA BUDGET AND. ACTUAL- - GENERAL FUND FOR THE YEAR: ENDED SEPTEMBER: 30,2013  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES  Variance with Final Budget- Positive (Negative) 49,425 15,624 267,810 92,501 5,554 (7,823) 194 423,285 643,727 (404,270) (188,799) (280,521) (53,845) (91,078) (374,786) 48,499 38.766 87,265 87,265  Budgeted Amounts Original $ 938,200 $ 212,000 178,500 28,000 36,000 1,392,700 988,750 280,706 46,400 43,700 110,500 1,470,056 (77,356) (77,356) 51,431 (25,925) $  Actual Amounts 987,625 $ 227,624 267,810 271,001 33,554 28,177 194 1,815,985 345,023 684,976 235,199 324,221 164,345 91,078 1,844,842 (28,857) 38,766 9,909 51,431 61,340 $  Final 938,200 $ 212,000 178,500 28,000 36,000 1,392,700 988,750 280,706 46,400 43,700 110,500 1,470,056 (77,356) (77,356) 51,431 (25.925) $  REVENUES Taxes Licenses and permits Intergovemmental Charges for services Fines and forfeitures Miscellancous revenues Interest Total revenues EXPENDITURES Current operations: General goverment Public safety Public works Public welfare Debt service: Principal retirement Interest charges Total expenditures Excess (deliciency) ofrevenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Net change in fund balances FUND BALANCES-BEGINNING FUND BALANCES-ENDING  32    TOWN OF ECLECTIC, ALABAMA EMPLOYEES' RETIREMENT SYSTEM OF ALABAMA SCHEDULE OF FUNDING PROGRESS  SCHEDULE OF FUNDING PROGRESS  Actuarial Accrued Liability (AAL)- Entry Age (b) 678,399 691,247 784,998 582,089 611,847 617,735  UAALasa Percentage ofCovered Payroll I(b-a) )cl -8.6% -3.0% 2.1% 20.0% -11.4% -31.1% -30.0%  Actuarial Valuation Date Januaryl 09/30/07 09/30/08 09/30/09 09/30/10' 09/30/11* 09/30/122 09/30/1223  Actuarial Value of Assets (a) 693,368 677,710 669,935 635,315 783,440 783,440  Unfunded AAL (UAAL) (b-a) (14,969) 13,537 115,063 (53,226) 109.1% (171,593) 128.0% (165,705) 126.8%  Funded Ratio (a/b) 105.4% 102.2% 98.0% 85.3%  Covered Payroll (c) $ 408,764 499,285 631,598 576,530 466,654 551,880 551,880  $ 685,757 $ 650,653 $ (35,104)  'Reflects thei impact of Act 2011-27, which closes the DROP program to new applicants after March 24,2011. Reflects thei impact of Act 2011-27 as well as Act 2011-676, which increases the member contribution rates by 2.25%  2p Reflects changes ini interest smoothing technology. Reflects changes in actuarial assumptions.  beginning October 1,2 2011 and by an additional 0.25%1 beginning October 1,2012.  33