Town of Bermuda Run Bermuda Run, North Carolina For the year ended June 30, 2020  Independent Auditor's Reports Basic Financial Statements Information Accompanying the Basic Financial Statements  And    Town of Bermuda Run Table of Contents June 30,2020  Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements:  1-2 3-12  Government-wide Financial Statements:  Exhibit" 1 Exhibit2  Statement of Net Position Statement of Activities  13 14  Fund Financial Statements Exhibit3 3 Exhibit 4 Exhibit 5  Balance Sheet- - Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances- - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures And Changes in Fund Balances of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances- - General Fund and Annually Budgeted Statement of Fund Net Position - Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Fund Statement of Cash Flows - Proprietary Funds  15 16  to the Statement of Activities  17  Exhibite 6  Special Revenue Fund  18 19 20 21 22-39  Exhibit7 Exhibit 8 Exhibit 9  Notes to the Financial Statements    Required Supplementary Information:  Schedule oft the Proportionate Share of the Net Pension Asset - Local Government Employees' Retirement System Schedule of Contributions - Local Government Employees'  40 41  Retirement System  Individual Funds Statements and Schedules:  Statement of Revenues, Expenditures, and Changes in Fund Balances - Statement of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual - General Capital Projects Fund- US1 158 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Special Revenue Fund - Gated Security Schedule of Revenues and Expenditures Budget and Actual - (Non-GAAP)  Budget and Actual - General Fund  42-43 44 45 46-47 48 49  Sewer Fund  Other Schedules:  Schedule of Changes in Ad Valorem Taxes Receivable  Analysis of Current Taxl Levy    EDDIE CARRICK, CPA, PC Certified Public Accountant  INDEPENDENT AUDITOR'SI REPORT  Tol Honorable Mayor and Town Council Town of Bermuda Run Bermuda Run, North Carolina  lhave audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, and each major fund of the Town of Bermudal Run, North Carolina, as of and for the year ended June 30, 2020, 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 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 off financial statements that are free from material misstatement, whether due to fraud or error. My responsibility is to express opinions on these financial statements based on my audit. Id conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's 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 of expressing an opinion on the eftectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness ofs significant accounting estimates made by management, Ibelieve that the audit evidence I have obtained is sufficient and appropriate to provide al basis for my audit In my 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, the discretely presented component unit, and each major fund of the Town of Bermuda Run, North Carolina, as of June 30, 2020, and the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary comparison of the General Fund and Special Revenue Fund for the year then ended ina accordance with accounting principles generally accepted int the United States of America.  Management's Responsibility for the Financial Statements  Auditor's Responsibility  financial statements are free from material misstatement.  as well as evaluating the overall presentation oft the financial statements.  opinions. Opinions  Member oft theA American Institute of Certified Public Accountants  Eddie Carrick  1  151 Young Drive, Lexington, NC 27292 336-249-2545, Fax 336-249-4745    Other Matters  Required Supplementary information  Accounting principles generally accepted in the United States of America require that the managements discussion and analysis on pages 3-12 and the Local Government Employees' Retirement System's Schedules of the Proportionate Share of the Net Pension Asset (Liability) and Contributions, on pages 40 through 41, respectively, 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. I 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 ofi inquiries ofr management about the methods of preparing the information and comparing the information for consistency with managements responses to my inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Bermuda Run, North Carolina's basic financial statements. The individual fund financial statements, budgetary schedules, and other schedules are presented for purposes of additional The individual fund financial statements, budgetary schedules, and other schedules 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 and certain additional procedures, including comparing and reconciling such information directly toi the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures ina accordance with auditing standards generally accepted in the United States of America. In my opinion, based on my audit, and the procedures performed as described above, the individual fund financial statements, budgetary schedules, and other schedules are fairly stated, in all material respects, inr relation to  assurance.  Supplementary and Other Information  analysis and are not ar required part of the basic financial statements.  the basic financial statements as a whole. Emphasis of Matter  As discussed in Note IV to the financial statements, in January 2020, the Worid Health Organization has declared COVID-19 to constitute a "Public Health Emergency of International Concern." Given the uncertainty oft the situation, the duration of any business disruption and related financial impact cannot be reasonably estimated at this time. My opinion is not modified with  respect to this matter Eddie Carrick CPA,PC  C&CO.CAk Lexington, North Carolina October 4, 2020  2    TOwN  Bamicta TRm NORTH CAROLINA I20 Kinderton Boulevard, Suitel 1OO Bermuda Run, NC 27006 336.998.0906 Fax336.998.7209 lownofbr.com  Management's Discussion and Analysis  As management oft the Town of Bermuda Run, we offer the readers of the Town of Bermuda Run's financial statements this narrative overview and analysis of the financial activities of the Town of Bermuda Run for the fiscal year ended June 30, 2020. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the Town's financial statements, which  follow this narrative. Financial highlights  The assets and deferred outflows of resources oft the Town of Bermuda Run exceeded its liabilities and deferred inflows ofr resources at the close of thet fiscal year by $11,790,782 (net position). The government's total net position increased by $1,137,098, primarily due to governmental-type As of the close of the current fiscal year, the Town of Bermuda Run's governmental funds reported combined ending fund balances of $3,045,445 with a net change of $115,645 in fund balance. Att the end oft the current fiscal year, unassigned fund balance for the general fund was $2,525,740, or The Town of Bermuda Run's total debt increased by $2,386 due to a decrease in accrued vacation of  activities and a conservative approach to spending.  Approximately 17% of this total amount, or $519,705; is restricted- or assigned. 144% oft total general fund expenditures fort thet fiscal year. $1,671, and ani increase in netp pension liability of $4,057.  Overview of the Financial Statements  This discussion and analysis is intended to serve as introduction to the Town of Bermuda Run's basic financial statements. The Town's basic financial statements consist of three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the Town through the use of government- wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader's understanding of the financial  condition oft the Town of Bermuda Run.  3  A Vibrant Community of Vision    Management Discussion and Analysis Town of Bermuda Run Figure 1  Required Components of Annual Financial Report  Management's Discussion and Analysis  Basic Financial Statements  Government-wide Financial Statements  Fund Financial Statements  Notes to the Financial Statements Detail  Summary  Basic Financial Statements  The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government-wide Financial Statements. They provide both short and long-term information about the Town's financial status. The next statements (Exhibit 31 through 9) are Fund Financial Statements. These statements focus on the activities of the individual parts of the Town's government. These statements provide more detail than the government-wide statements. There are three parts to the Fund Financial Statements: 1) the governmental fund statements 2) the budgetary comparison statements and 3)t the proprietary fund statements. The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided to show details about the Town's individual funds. Budgetary information required  byt the General Statutes also can be found ini this part of thes statements.  4    Management Discussion and Analysis Town of Bermuda Run Government-Wide Financial Statements  The government-wide financial statements are designed to provide the reader with al broad overview of the Town's finances, similar in format to a financial statement of a private-sector business. The government- wide statements provide short and long-term information about the Town's financial status as a whole. The two government-wide statements report the Town's net position and how they have changed. Net position is the difference between the Town's total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the Town's The government-wide statements are divided into three categories: 1) governmental activities 2) business- type activities and 3) component units. The governmental activities include most of the Town's basic services such as safety and security, transportation and administration. Property tax and state shared revenues finance these activities. The business-type activities are those that the Town charges customers to provide. These include sewer services offered by the Town. The final category is component unit. Although legally separate from the Town, the Tourism Development Authority is important to the Town. The  financial condition.  Town exercises control over the Authority by appointing its members. The government-wide financial statements are on Exhibits 1 and 2 of this report.  Fund Financial Statements  The fund financial statements (see Figure 1) provide a more detailed look at the Town's most significant activities. A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Bermuda Run, like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-compliance), with finance-related legal requirements, such as General Statutes or the Town's budget ordinance. All of the funds of the Town of Bermuda Run can be divided into two categories: governmental funds and proprietary Governmental Funds - Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the Town's basic services are accounted fori in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Government funds are reported using an accounting method called modified accrual accounting which provides a short term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him determine if there are more or less financial resources available to finance the Town's programs. The relationship between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a  funds.  reconciliation that is part oft thet fund financial statements.  5    Management Discussion and Analysis Town of Bermuda Run  The Town of Bermuda Run adopts an annual budget for the General Fund and Special Revenue Fund, as required by the General Statutes. The budget is a legally adopted document that incorporates input from the citizens of the Town, the management oft the Town, and the decisions of the board about which services top provide and how to pay for them. It also authorizes the Town to obtain funds from identified sources to finance the current period activities. The budgetary statement provided for the General Fund and Special Revenue Fund demonstrates how well the Town complied with thel budget ordinance and whether or not the Town succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented in the same format, language and classifications as the legal budget document. The statement shows four columns: 1).t the original budget as adopted by the board 2) the final budget as amended by the board 3) the actual resources, charges to appropriations, and ending balances ini the General Fund and Special Revenue Fund, and 4) the differences or variance between the final budget and actual resources and charges. To account for the difference between the budgetary basis ofa accounting and the modified accrual basis, ar reconciliation showing the differences in the reported activities is shown att the end oft the budgetary statement. Proprietary funds - The Town of Bermuda Run has one type of proprietary fund. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account fori its sewer activity. This fund is the same as the functions shown in the business-type activities in the Statement of Net Position and Statement of Notes to the Financial Statements - The notes provide additional information that is essential to the full understanding of data provided in the government-wide and fund financial statements. The notes to the Other Information - In addition to the basic financial statements and accompanying notes, this report includes certain supplemental information detailing the information provided int the basic financial statements and is presented to allow the reader to gain an in-depth understanding of the financial information Interdependence with Other Entities - The Town depends on financial resources flowing from, or associated with, both the Federal Government and the State of North Carolina. Because of this dependency, the Town is subject to changes in specific flows of intergovernmental. revenues based on modifications to Federal and State laws and Federal and State appropriations. Itis also subject to changes inir investment earnings and asset values associated with U.S. Treasury Securities because of actions by  Activities.  financial statements begin on page 22 oft this report.  presented.  foreign government and other holders of publicly held U.S. Treasury Securities.  6    Management Discussion and Analysis Town of Bermuda Run Government-Wide Financial Statements  Town of Bermuda Run's Net Position (Figure2)  Governemental Activities 2020  Business-Type. Activities 2020  Total 2020 2019  2019  2019  Current and other assets Capital assets Deferred outflows ofr resources Total assets and deferred outflows ofr resources Long-term liabilities Other liabilities Deferred inflows ofr resources Totall liabilities and deferred inflows ofresources Net position: Net investment in capital assets Restricted for: Stabilization by State Statute Streets Unrestricted Total net position  $3,273,094 $ 3,004,906 $ 1,949,827 $ 1,635,615 $ 5,222,921 $ 4,640,521  4,881,341 4,073,573 1,948,180 2,036,919  6,829,521 6,110,492 48,536  48,536  60,924  60,924  8,202,971 7,139,403 3,898,007 $3,672,534 12,100,978 10,811,937  86,259 217,125 6,729 310,113  83,873 68,174 6,125 158,172  86,259 217,208 6,729 310,196  83,873 68,257 6,125 158,255  83 83  83 83  4,881,341 4,073,573 1,948,180 2,036,919  6,829,521 6,110,492 60,065 310,334  60,065 310,334  151,640 256,281  151,640 256,281  2,641,118 2,499,737 1,949,743 1,635,532 4,590,861 4,135,269 $7,892,858 $ 6,981,231 $3,897,924 $ 3,672,452 $ 11,790,782 $ 10,653,683  As noted earlier, net position may serve over time as one useful indicator of a government's financial condition. The assets and deferred outflows of resources of the Town exceeded liabilities and deferred inflows by $11,790,782 as of June 30, 2020. The Town's net position increased by $1,137,098 for the fiscal year ended June 30, 2020. However, the largest portion (58%) reflects the Town's net investment in capital assets (road improvements, equipment, machinery, utility plant) less any related debt still outstanding that was issued to acquire those items. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town's net investment in capital assets is reported net of the outstanding debt, the resources needed to repay that debt must be provided by other sources, since capital assets cannot be used to liquidate these liabilities. An additional portion oft the Town's net position, $7,199,921, represents resources that are subject to external restrictions  on how they may be used. The remaining balance of $4,590,861 is unrestricted.  7    Management Discussion and Analysis Town of Bermuda Run government net position:  Several particular aspects of the Town's financial operations positively influenced the total unrestricted  Continued diligence in the collection of property taxes by maintaining at tax collection percentage of  99.31%, compared to the state average of97%. Timely maintenance of Town assets to maximize lives. Capital grant associated with the General Fund capital project.  Town of Bermudal Run's Changes in Net Position (Figure 3)  Governmental Activities 2020 2019  Business-type Activities 2020 2019  Total 2020 2019  Revenues Program revenues: Charges fors services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Othert taxes Other Total revenues Expenses: General goverment Safety Gate operations Transportation Interest on long-te term debt Water ands sewer Total expenses Transfers Increase inr net position Net position, July1 Netp position, June 30  512,652 $ 520,082 $ 527,122 $ 546,697 $ 1,039,774 $ 1,066,779  61,896 770,000 849,843 839,912 486,533 544,616 556,814 525,753  63,191  61,896 770,000 849,843 486,533 557,664  63,191 839,912 544,616 528,303  850  2,550  3,237,738 2,493,554 527,972 549,247 3,765,710 3,042,801  960,164 1,001,455 87,740 545,210 531,537 732,997 842,855 2,326,111 2,465,421 911,626 911,626  960,164 1,001,455 87,740 545,210 732,997 302,500  89,573  89,573 531,537 842,855 289,516 287,863 287,863  302,500 289,516  302,500 289,516 2,628,611 2,754,936  Increase inr netp position before transfers  28,132 225,472 259,731 1,137,098  28,132 225,472 259,731 1,137,098  6,981,231 6,953,099 3,672,452 3,412,721 10,653,683 10,365,820 $_7,892,858 $ 6,981,231 $ 3,897,924 $ 3,672,452 $ 11,790,782 $10,653,683  8    Management Discussion and Analysis Town of Bermuda Run  Governmental activities. Governmental activities increased the Town's net position by $911,626, thereby accounting for 81% of the total growth in net position of the Town. The increase in net position was the result ofi increased revenue generation, capital contributions as well as continued effort to control costs and manage expenditures. Management believes healthy investment in the Town will result in additional revenues, adding to the Town's net position by investing in capital assets which were largely funded by capital contribution revenues. Tax revenue remained steady in the current year. Town management acknowledges that 2020 was as successful year and plans oni improving upon these approaches as al long-  term strategy to realize continued fiscal health. Key elements of thisi increase are as follows: Taxr revenues remained steady  Town council has adopted a conservative approach to general fund spending Capital contributions associated with the General Fund capital project  Business-type activities: Business-type activities increased the Town's net position by $225,472, accounting for 19% oft the total growthi in the government's net position. Key elements oft this increase areas  follows:  Sewer charges remain steady Conservative approach to spending Financial Analysis of the Town's Funds related legal requirements.  As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance- Governmental Funds: The focus oft the Town's governmental funds is to provide information on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing the Town's financing requirements. Specifically, unreserved fund balance can be a useful measure of a government's The General Fund is the chief operating fund of the Town. Att the end oft the current fiscal year, the Town of Bermuda Run's fund balance available in the General Fund was $2,525,740, while total fund balance reached $2,896,139. The Town currently has an available fund balance of 144% of general fund At. June 30, 2020, the governmental funds of the Town reported a combined fund balance of $3,045,445 with a net increase in fund balance of $115,645. Included in this change in fund balance are increases in the General Fund of $189,877, a decrease in the General Fund Capital Project of $58,646, and a decrease  net resources available fors spending at the end of thet fiscal year.  expenditures, while total fund balance represents 165% of the same amount.  in Special Revenue Fund of $15,586.  9    Management Discussion and Analysis Town of Bermuda Run  General Fund Budgetary Highlights: During thet fiscal year, the Town revised the budget on one occasion. Generally, budget amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; 2) amendments made to recognize new funding amounts from external sources, such as Federal and State grants; and 3)i increases in appropriations that become necessary to maintain services. The Town amended the budget in order to account fort the Special Revenue's gate expenditures. Proprietary Funds: The Town's proprietary funds provide the same type of information found in the government-wide statements but in more detail. Unrestricted net position in the Sewer Fund at the end of the fiscal year amounted to $1,949,743. The total change in net position was $225,472. Other factors concerning the finances of this fund have already been addressed in the discussion of the Town's business-  type activities.  Capital Asset and Debt Administration  Capital Assets. The Town's investment in capital assets fori its governmental and business-type activities as of June 30, 2020, totals $6,829,521 (net of accumulated depreciation). These assets include buildings,  roads, machinery and equipment.  Major capital asset transactions during the year included thet following additions: Construction in progress road improvements $828,646  Road improvements $60,225 Sidewalk improvement $205,903  Town of Bermudal Run's Capital Assets (net of depreciation) (Figure 4)  Govemmental Activities 2020 2019 828,646 3,119,290 3,212,864 428,400 464,100 382,011 122,992  Business-type Activities 2020 2019  Total 2020 2019 828,646 $ 3,119,290 3,212,864 428,400 464,100 382,011 362,323 122,992  Construction inj progress Road improvements Buildings Otheri improvements Equipment andf furnishings Plant and distribution  362,323 34,286  34,286  1,948,182 2,036,919 1,948,182 2,036,919  $ 4,881,341 $ 4,073,573 $ 1,948,180 $ 2,036,919 $ 6,829,521 $6,110,492  Additional information on the Town's capital assets can be found in the Note IIL.A.4 of the Basic Financial  Statements.  10    Management Discussion and Analysis Town of Bermuda Run  Long-term Debt. As of June 30, 2020, the Town's long-term debt was made up of thet following:  Town of Bermuda Run's Long-term Debt (Figure 5)  Governmental Activities 2020 2019 83,293 $ 79,236 $ 2,966 4,637 86,259 $ 83,873 $  Business-type Activities 2020 2019 $ $  Total 2020 2019 83,293 $ 79,236 2,966 4,637 $ 86,259 $ 83,873  Pension related debt (LGERS) Compensated absences  Town of Bermuda Run's Outstanding Debt $1,671 and ani increase in net pension liability of $4,057.  The Town of Bermuda Run's total debt increased by $2,386 due to a decrease in accrued vacation of North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of property located within that government's boundaries. The Additional information regarding the Town's long-term debt can bet found in Note II.B.6 of this report. The following key economic indicators reflect the growth and prosperity oft the Town.  legal debt margin for the Towni is $45,154,027.  Economic Factors and Next Year's Budgets and Rates  The continued build out of Kinderton Village Residential Community with a new 72 unit single Ai fully operational 50 bed tower in for the Davie Medical Center - Bermuda Run Campus, as well The expansion of services for Bermuda Village Premier Retirement Community Increased commercial and retail growth int the Town and surrounding areas  family section  as af fully operationalj joint replacement unit  Increased destination driven economic impact from Truist Sports Park for tournaments and special The construction of the new R.I.S.E. 100,000 square foot indoor sports and events facility adjacent Continued increased use of WinMock at Kinderton for corporate events, weddings, and regional Work toward the recruitment of a 130 room boutiquelupscale hotel adjacent to WinMock at The completion of a 224 unit market rate apartment community within the Kinderton Commercial Two new access streets tot the Kinderton Commercial Core area adding additional opportunities for  events  toTruist Sports Park thati is scheduled for completion in June of2 2021  programs. Kinderton Core area mixed-use development  11    Management Discussion and Analysis Town of Bermuda Run  Budget Highlights for the Fiscal Year Ending June 30, 2021  Governmental Activities: Property tax revenues are expected to increase slightly in conjunction with new construction in the commercial areas, as well as renewed residential family home construction in the residential zoned areas. The Town has budgeted monies to enhance quality of life by interconnecting residential and retail areas with multi-use paths. Other revenues and expenses are expected to remain The Town has chosen not to appropriate fund balance in the. fiscal year 2021 budget. Management believes that increased revenues and continued restrictions on spending will maintain the Town's financial position. As the Town considers future revenue sources, it has determined that a $0.01 increase in the property tax rate will result in additional revenues of approximately $56,053 at current values and collection rate. Though management believes current growth will generate enough revenue to support Town operations, ac careful analysis of property tax revenue will be considered ini future years' budgets. Business-type Activities: Revenues for the 2020-2021 year are expected to increase slightly due to projected volume increase in sales tax distribution from the State of North Carolina. However, this will be tempered with a change from per capita to ad valorem method of sales tax distribution by the Davie County  consistent with the 2019-2020 fiscal year.  Commissioners. Requests for Information  This report is designed to provide an overview of the Town's finances for those with an interest in this area. Questions concerning any oft thei information found in this report or requests for additional information should be directed tot the Town Manager, Town of Bermuda Run, 120 Kinderton Blvd, Suite 100, Bermuda Run, NC  27006.  12    Exhibit1  Town of Bermuda Run, North Carolina Statement of Net Position June 30, 2020  Component Unit Town of Bermuda Run Tourism Development Authority  Primary Government Business-type Activities  Governmental Activities  Total  ASSETS Current assets: Cash andi investments Property taxes receivable (net) Accounts receivable (net) Restricted cash Total current assets Non-current assets: Capital assets (Note 4): Construction inj progress Other capital assets, net of depreciation Total Capital assets Total assets DEFERRED OUTFLOWS OFF RESOURCES Pension deferrals Total deferredi inflows ofr resources LIABILITIES Current liabilities: Accounts payable Long-term liabilities: Netp pension liability Accrued vacation Totall liabilities DEFERRED INFLOWS OF RESOURCES Pension deferrals Total deferred inflows ofr resources NET POSITION Net investment in capital assets Restricted for: Stabilization! by State Statute Streets Tourism Development Unrestricted Total net position  $ 2,800,252 $ 1,949,827 $ 4,750,079 $  10,524 151,984 310,334 3,273,094 828,646 4,052,695 4,881,341 8,154,435 48,536 48,536  10,524 151,984 310,334 5,222,921 828,646 6,000,875 6,829,521 12,052,442 48,536 48,536  1,768 184,521 186,289  1,949,827  1,948,180 1,948,180 3,898,007  186,289  217,125 83,293 2,966 303,384 6,729 6,729 4,881,341 60,065 310,334 2,641,118  83  217,208 83,293 2,966 303,467 6,729 6,729 6,829,521 60,065 310,334 4,590,861  83  1,948,180  1,768 184,521 186,289  1,949,743  $ 7,892,858 $ 3,897,924 $ 11,790,782 $  The accompanying notes are ani integral part oft thef financial statements  13        Exhibit3  Town of Bermuda Run, North Carolina Governmental Funds Balance Sheet June 30, 2020  Major Capital Project US158  Total Governmental Funds 310,334 10,524 151,984  Special Revenue  General : 2,588,238 $ 310,334 (91,919) 10,524 151,984  ASSETS Cash andi investments Restricted cash Duet to (from) otherf funds Propertyt taxes receivable (net) Accounts receivable (net) LIABILITIES Accounts payable  212,014 $ 2,800,252  91,919  * 2,969,161 $ 91,919 $ 212,014 $ 3,273,094 $ 62,498 $ 150,565 $ 4,063 $ 217,125  62,498 10,524 10,524 60,065 310,334 2,525,740 2,896,139  150,565  4,063  217,125 10,524 10,524 60,065 310,334 (58,646) 207,952 2,525,740 3,045,445  DEFERRED INFLOWS OF RESOURCES Property taxes receivable Total deferredi inflows of resources Fund balances: Restricted for: Stabilization by states statute Streets Capital project Assigned for gate operations Unassigned Total Fund Balances Totall liabilities, deferred inflows ofr resources and fund balances Amounts reported for governmental activities int thes statement ofr net position (Exhibit 1)arec different! because: Capital assets usedi ing governmental: activities arer notf financial resources and therefore arer not reportedi int thet funds. ofr resources on the Statement ofl Net Position Liabilities fore earnedr revenues considered deferred inflows ofr resources inf funds statements. Pension related deferrals governmental activities: Accrued vacation Net position oft the governmental: activities  (58,646) (58,646)  207,952 207,952  2,969,161 $ 91,919 $ 212,014  4,881,341 (83,293) 48,536 10,524 (6,729)  Net pension liability  Contributions tot thep pension plani int the current fiscaly year are deferred outflows  Somel liabilities, including bonds payable, arei not due andy payablei int the current period and aret therefore not reported in ther netp position oft the  (2,966) 7,892,858  The accompanying notes are ani integral part oft thet financial statements  15    Exhibit 4  Town of Bermuda Run, North Carolina Governmental Funds For the Year Ended June 30, 2020  Statement of Revenues, Expenditures and Changes in Fund Balance  Major Capital Project US158  Total Governmental Funds $ 846,251 486,533 221,372 227,896 33,392 512,652 136,050 2,464,145 770,000 3,234,145 870,763 87,740 528,237 1,631,760 3,118,500  Special Revenue $  General $ 846,251 $ 486,533 221,372 227,896 33,392 136,050 1,951,494  Revenues: Ad Valoremt taxes Other taxes andl licenses Unrestricted intergovernmental revenues Restricted intergovernmental revenues Investment earnings Gate fees Other revenues Other financing sources: Proceeds from long-term debt Capital contributions Appropriated fund balance Total revenues and other sources Expenditures: General government Safety Gate operations Transportation Debt service Other Financing Uses: Transfers Total Expenditures and Other Uses Excess ofr revenues and other sources over (under) expenditures and other uses Fund Balances Beginning ofy year, July1 1 End ofyear, June 30  512,652 512,652  770,000 770,000  1,951,494 870,763 87,740 803,114 1,761,617  512,652  528,237 528,237  828,646 828,646  1,761,617 189,877 2,706,262  828,646 (58,646)  528,237 (15,586) 223,537  3,118,500 115,645 2,929,800  Z 2,896,139 $ (58,646) $ 207,952 $ 3,045,445  The accompanying notes are ani integral part oft thet financial statements  16    Exhibit 5  Town of Bermuda Run, North Carolina Governmental Funds For the' Year Ended June 30, 2020  Statement of Revenues, Expenditures and Changes in Fund Balance  Amounts reported for governmental activities int the statement of activities are different because:  Net changes inf fund! balances totalg governmental funds  $ 115,645  Governmental fundsr report capital outlays as expenditures. However, int the Statement of Activities, the cost of those assetsi is allocated overt their estimated usefull lives andr reported as depreciation expense. Thisi ist the amount! byv which capital outlays exceeded depreciation for the current period..  Capital outlay Construction inp progress Depreciation  $ 266,128 828,646 (287,007)  807,767 3,592  Revenues in the statement of activities that do not provide current financial resources are not reported as revenues int thei funds. Change in unavailable revenue: for tax revenues Changes inp pension expense Changes inr net pension assets Changes in deferred outflows Changes in net pension liability Changes in deferred inflows  (12,388) (4,057) (604)  (17,049)  Thei issuance ofl long-term debtp provides current financial resources to governmental funds, whilet the repayment oft the principal ofl long-term debt consumes the current financial resources ofg governmental funds. Neither transaction has anye effect on net position. This amount is the net effect of these differences int thet treatment ofl long-termi debt Some oft the expenses reported int the statement of activities dor not require the use of current financial resources and, therefore, are not reported as  andr relatedi items.  expenditures in governmental funds. Compensated absences  1,671 $ 911,626  Total changesi in net position ofg governmental activities  The accompanying notes are ani integral part oft the financial statements  17        Exhibit7  Town of Bermuda Run, North Carolina Proprietary Funds Statement of Fund Net Position June 30, 2020  Assets Current assets: Cash andi investments Accounts receivable (net) Total current assets Noncurrent assets: Capital assets:  $1,949,827 1,949,827  Other capital assets, neto of depreciation Total non-current: assets Total assets Liabilities Current liabilities: Current maturities on long-t -term debt Accounts payable Total current! liabilities Long-term liabilities: Duei inr more than one year Totall liabilities Net Position Neti investment in capital assets Unrestricted  1,948,180 1,948,180 3,898,007  83 83  83  1,948,180 1,949,743 $3,897,924  Total net position of business-type activities  The accompanying notes are ani integral part oft thet financial statements  19    Exhibit8  Town of Bermuda Run, North Carolina Proprietary Funds For the Year Ended June 30, 2020  Statement of Revenues, Expenses and Changes in Fund Net Position  Operating revenues: Sewer charges Operating expenses: Administration Sewer operations Depreciation  $  527,122 527,122 51,010 162,751 88,739 302,500 224,622  Operating income Nonoperating revenue (expense): Interest income Otheri income  850 850 225,472  Total nonoperating revenue (expense) Income before operating transfers Operating transfers in (out)  Change in net position- business type activities  225,472 3,672,452 3,897,924  Total net position- July1 Total net position- June 30  $  The accompanying notes are an integral part oft the financial statements  20    Exhibit 9  Town of Bermuda Run, North Carolina Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2020  Cash flows from operating activities: Cash received from customers Cash payment to suppliers of goods and services Cash payment to employees and benefits Net Cash Provided By Operating Activities Cash flows from noncapital financial activities: Transfer from General Fund Sewer assessments  9 527,122 (213,760) 313,362  Net Cash Provided by Noncapital Financing Activities Cash from capital and related financing activities:  Interest paid Payments on long-term debt Purchase of capital assets  Net Cash Used by Capital and Related Financing Activities Cash flows fromi investing activities: Interest on investments Net Cash Provided by Investing Activities Net Increase (Decrease) In Cash Cash- Beginning of Year, July1 1 Cash- End of Year, June 30  850 850 314,212 1,635,615 1 1,949,827  Adjustments to Reconcile Net Operating Income to Net Cash Provided by Operating Activities: Changes in current assets and liabilities: (Increase) decrease in accounts receivable Increase (decrease) in accounts payable Net Cash Provided (Used) By Operating Activities  Net operating income Depreciation  $ 224,622 88,739  313,362 $  Interest paid  The accompanying notes are ani integral part of the financial statements  21    Town of Bermuda Run, North Carolina NOTES TO FINANCIAL STATEMENTS As of or for the Year Ended. June 30, 2020  Description of the unit  The Town of Bermuda Run is located in Davie County, which isi in the Piedmont area of North Carolina. The Town has a population of approximately 2,700 and covers approximately two thirds of one square mile. The  Town provides sewer services toi its residents. IS Summary of Significant Accounting Policies the more: significant accounting policies: A. Reporting entity  The accounting policies of the Town of Bermuda Run and its discretely presented component unit conform to generally accepted accounting principles as applicable to governments. The following is a summary of  The Town of Bermuda Run is a municipal corporation governed by an elected mayor and council. As required by generally accepted accounting principles, these financial statements present the Town and its component unit, a legally separate entity for which the Town is financially accountable. The discretely presented component unit presented below is reported in a separate column in the Town's financial  statements in order to emphasize that iti is legally separate for the Town. Town of Bermuda Run Tourism Development Authority  The Town of Bermuda Run Tourism Development Authority was established December 1, 2010 for the purpose of collecting a 3% occupancy tax to be used for the promotion of tourism in Bermuda Run. The members oft the Tourism Development. Authority's governing board are appointed by the Town. The Tourism Development Authority, which has a June 30 year-end, is presented as ifit were a special revenue fund. Information conceming the Tourism Development Authority can be obtained by contacting the Finance  Officer, Town of Bermudal Run, Bermuda Run, NC.  B. Basis of presentation  Government-wide Statements: The statement of net position and the statement of activities display the information about the government and its component unit. These statements include the activities of the overall government. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the Town. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non- exchange transactions. Business-type activities are financed in whole or part by fees charged to external The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the Town and for each function of the Town's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed fort the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods and services offered by the programs and (b) grants and contributions that are restricted to meeting the operational and capital requirements of a particular program. Revenues that are not classified as program revenues, including allt taxes, are presented as general revenues.  parties.  22    Notes tot the Financial Statements (continued)  B. Basis ofp presentation (continued)  Fund Financial Statements: The fund financial statements provide information about the Town's funds. Separate statements for each fund category governmental and proprietary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non- Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially the equal values. Non-operating revenues, such as subsidies and  major funds.  investment earnings, result from non-exchange transactions or ancillary activities.  The Town reports the following major governmental funds:  General Fund  The General Fund is the general operating fund oft the Town. Itis used to account for all financial resources except those required to be accounted for in other funds. The primary revenue sources are ad valorem taxes and state-shared revenues. The primary expenditures are for streets and general government  services. Special Revenue Fund  The Special Revenue Funds account for specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specific purposes. The Town maintains one  Special Revenue Fund, the Gated Security Fund. The Town reports the following major enterprise funds:  Sewer Fund  The Town maintains an Enterprise Fund, the Sewer Fund, to account for its sewer services. This fund is Itis the intent of the governing body that costs (expenses, including depreciation) of providing these services to the public on a continuing basis be financed or recovered primarily through user charges. Therefore, periodic accounting is necessary for determination of net income and rate control.  financed and operated int the same manner as aj private business enterprise.  C.A Measurement. Focus and Basis of Accounting using the modified basis of accounting.  Ina accordance with North Carolina General Statutes, all funds of the Town are maintained during the year Government-wide and. Proprietary Fund Financial Statements: The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus. The government-wide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses recorded at the time liabilities are incurred regardless of when the related cash flows take place. Non-exchange transactions, in which the Town gives (or receives) value  23    Notes to the Financial Statements (continued)  .A Measurement. Focus and Basis of Accounting (continued)  without directly receiving (or giving) equal value in exchange, including property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which alle eligibility Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than Proprietary funds distinguish operating revenues and expenses from non-operating 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 of the Town enterprise fund are charges to customers for sales and services. The Town also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the sewer system. Operating expenses for enterprise. funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this Governmental Fund Financial Statements: Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long- term debt and acquisitions under capital leases are reported as other financial sources. The Town considers all revenues available if they are collected within 90 days after year end, except for property taxes. Ad valorem taxes receivable are not accrued as revenue because the amount is not susceptible to accrual. At June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered to be an available resource to finance the operations of the current year. Also, as of September 1, 2013, State law altered the procedures for the assessment and collection of property taxes on registered motor vehicles in North Carolina. Effective with this change in the law, the State of North Carolina is responsible for billing and collecting the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are registered. The billed taxes are applicable to thet fiscal year in which they are received. Uncollected taxes that were billed in periods prior to September 1, 2013 and for limited registration plates are shown as a receivable in these financial statements and are offset by deferred inflows of resources. Sales taxes and certain intergovernmental revenues, such as the beer and wine tax, collected and held by the State at year-end onl behalf of the Town are recognized as revenue. Sales taxes are considered shared revenue for the Town because the taxi is levied by Davie County and then remitted to and distributed by the State. Most intergovernmental revenues and sales and services are not susceptible to accrual because generally they are not measurable until received in cash. Alltaxes, including those dedicated for specific  requirements have been satisfied.  as program revenues. Likewise, general revenues include all taxes.  definition are reported as non-operating revenues and expenses.  24    Notes to the Financial Statements (continued)  C.A Measurement Focus and Basis ofA Accounting (continued)  purposes are reported as general revenues rather than program revenues. Under the terms of grant agreements, the Town funds certain programs by a combination of specific cost-reimbursement. grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there is both restricted and unrestricted net position available to finance the program. Itis the Town's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then  general revenues. D. Budgetary data  The Town's budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the General Fund, the Gated Security Special Revenue Fund and the Enterprise Fund. All annual appropriations lapse at the fiscal-year end. Fund. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the departmental level for all annually budgeted funds and at the project level for the multi-year funds. The Town does not have a  current policy which allows for departmental transfers without council approval. E.A Assets, Liabilities, Deferred Outlows/Inflows of Resources, and Fund Equity:  1. Deposits and Investments  All deposits of the Town and the Tourism Development Authority are made in board-designated official depositories and are secured as required by State law (G.S. 159-31). The Town and the Tourism Development Authority may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the Town and the Tourism Development Authority may establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts, and State law [G.S. 159-30(c)] authorizes the Town and the Tourism Development Authority to invest in obligations oft the United States or obligations fully guaranteed both as to principal and interest by the United States, obligations oft the State of North Carolina, bonds and notes of any North Carolina local government or public authority, obligations of certain non-guaranteed federal agencies, certain high quality issues of commercial paper and bankers' acceptances, and the North Carolina Capital Management Trust (NCCMT). The Town's and the Tourism Development Authority investments are reported at fair value. Non- participating interest earning contracts are accounted for at cost. The NCCMT Government Portfolio, a SEC-registered (2a-7) external investment pool, is measured at amortized cost, which is the NCCMT's share price. The NCCMT- Term Portfolio's securities are valued at fair value. The Town does not have a  certificates of deposit.  formal investment or credit risk policy. 2. Cash and Cash Equivalents  The Town pools money from several funds to facilitate disbursements and investment and to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered cash and cash equivalents. The Tourism Development Authority considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash  and cash equivalents.  25    Notes to the Financial Statements (continued)  3. Restricted. Assets  Powell Bill funds are classified as restricted cash because it can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136-41.1 through  136-41.4.  Town of Bermua Run Restricted Cash Governmental Activities General Fund Total Restricted Cash  Streets $310,334 $310,334  4. Ad Valorem Taxes Receivable  In accordance with State law (G.S. 105-347 and G.S. 159-13(a)), the Town levies ad valorem taxes on July 1, the beginning oft the fiscal year. The taxes are due on September 1; however, interest does not accrue until the following January 6. These taxes are based on the assessed values as of January 1, 2019. As allowed by State law, the Town has established a schedule of discounts that apply to taxes which are paid prior to the due date. In the Town's General Fund, ad valorem tax revenues are reported net of such  discounts.  5. Allowances for Doubtful Accounts  All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. This account is estimated by analyzing the percentage of receivables that were written offi inj prior  years. 6. Capital Assets  Capital assets are defined by the government as assets with an initial, individual cost ofr more than $2,500 and an estimated useful life ofr more than two years. Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets are recorded at their estimated fair value at the date of donation. General infrastructure assets acquired prior to July 1, 2003, consist of the road network and improvements that were acquired or that received substantial improvements subsequent to July 1, 1980, and are reported at estimated historical cost using deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not Capital assets are depreciated using the straight-line method over thet following estimated useful lives:  capitalized.  Asset Class Road improvements Furniture and office equipment Infrastructure  Useful Life- -Yrs 25 10-15 15-40  26    Notes to the Financial Statements (continued)  7. Deferred Outlows/Inflows of Resources  Ina 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 and SO will not be recognized as an expense or expenditure until then. The Town has one that meet this criterion, contributions made to the pension plan in the 2020 fiscal year. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and sO will not be recognized as revenue until then. The Town has one item that meets the criterion for this category -deferrals of pension expense that result from the implementation OfGASB Statement 68. 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 statements of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method that approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance cost, except for prepaid insurance costs, are expensed in the reporting period in which they are incurred. Prepaid insurance costs are expensed over Inf fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are ported as other financing uses. Issuance costs, whether or not withheld  8. Long-Term Obligations  the life of the debt.  fromi the actual net proceeds received, are reported as debt service expenditures.  9. Compensated. Absences  The vacation policy of the Town provides for the accumulation of up to thirty days earned vacation leave with such leave being fully vested when earned. For the Town's government-wide funds, an expense and liability for compensated absences and the salary-related payments are recorded as the leave is eamed. The Town has not recognized a current liability due to thei immaterial nature of this liability. The Town's sick leave policy provides for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at thet time of retirement may be used in the determination ofl length of service for retirement benefit purposes. Since the Town does not have any obligation for the accumulation ofs sick leave until iti is actually taken, no accrual fors sick leave has been made.  10. Net Position/ Fund Balances  Net Position  Net position in government-wide and proprietary fund financial statements are classified as net investment in capital assets, net of related debt; restricted and unrestricted. Restricted net position represent constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or  regulations of other governments ori imposed by lawt through state statute.  27    Notes to the Financial Statements (continued)  10. Net Position/ Fund Balances (continued)  Fund Balances  In the governmental fund financial statements, fund balance is composed off five classifications designed to  disclose the hierarchy of constraints placed on how fund balance can bes spent. The governmental fund types classify fund balances as follows:  Nonspendable Fund Balance - This classification includes amounts that cannot be spent because they are either (a) noti in spendable form or (b) legally or contractually required tol ber maintained intact. Restricted Fund Balance - This classification includes amounts that are restricted to specific purposes  externally imposed by creditors ori imposed by law.  Restricted for Stabilization by State statute - portion of fund balance that is restricted by State Restricted for Streets - Powell Bill portion of fund balance that is restricted by revenue source for street construction and maintenance expenditures. This amount represents the balance oft thet total Committed Fund Balance -portion of fund balance that can only be used for specific purposes imposed by majority vote by quorum of Town of Bermuda Run's governing body (highest level of decision-making authority). The governing body can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action Assigned fund balance - portion of fund balance that Town of Bermuda Run intends to use for specific  Statute [G.S. 159-8(a)).  unexpended Powell Bill funds.  is taken (the adoption of another ordinance) to remove or revise the limitation.  purposes.  Gate Operations - portion of fund balance that intended to be used for the security gate Unassigned fund balance - the portion of fund balance that has not been restricted, committed, or assigned The Town of Bermuda Run has a revenue spending policy that provides guidance for programs with multiple revenue sources. The Finance Officer will use resources in the following hierarchy: bond proceeds, federal funds, State funds, local non-town funds, town funds. For purposes of fund balance classification expenditures are to be spent from restricted fund balance first, followed by in-order by committed fund balance, assigned fund balance and lastly unassigned fund balance. The Finance Officer has the authority  operations.  tos specific purposes or othert funds.  to deviate from this policy ifitisi int the best interest of the Town.  28    Notes to the Financial Statements (continued)  11. Defined Benefit Cost-Sharing Plans  For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Governmental Employees' Retirement System (LGERS) and additions toldeductions from LGERS' fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Town of Bermuda Run's employer contributions are recognized when due and the Town of Bermuda Run has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investments are reported at fair value. A. Material Violations of Finance-Related Legal and Contractual Provisions: None  II.S Stewardship, Compliance, and Accountability:  B. Excess of Expenditures over Appropriations: None II. Detail Notes on All Funds and Account Groups:  A. Assets; 1. Deposits  All the deposits of the Town and the Tourism Development Authority are either insured or collateralized by using one of two methods. Under the Dedicated Method, all déposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Town's or the Tourism Development Authority's agents in these units' names. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Town and the Tourism Development Authority, these deposits are considered to be held by the Town's and the Tourism Development Authority's agents in their names. The amount of the pledged collateral is based on an approval averaging method for non-interest bearing deposits and the actual current balance for interest- bearing deposits, Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Town, the Tourism Development. Authority, or the escrow agent. Because of the inability to measure the exact amounts of collateral pledged for the Town andt the Tourism Development, Authority under the Pooling Method, the potential exists to undercolatenzation, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Town has no formal policy regarding custodial credit risk for deposits, but relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions and to monitor them for compliance. The Town complies with provisions of GS 159-31 when designating official depositories and verifying that deposits are properly secured. The Tourism Development. Authority has no formal policy regarding custodial  credit risk for deposits.  29    Notes to the Financial Statements (continued)  1. Deposits (continued)  At June 30, 2020, the Town's deposits had a carrying amount of $4,743,239 and a bank balance of $4,917,725. The bank balances of the Town were covered by $250,000 of federal depository insurance. The remaining balance ofo deposits is collateralized under the Pooling Method as enumerated above. At. June 30, 2020, the TDA's deposits had a carrying amount of $184,521 and al bank balance of $184,971. The bank balances of the TDA were covered by $250,000 of federal depository insurance. Any excess  balance of deposits is collateralized under the Pooling Method as enumerated above.  2. Investments credit risk.  At. June 30, 2020, the Town had $317,174 invested with thel North Carolina Capital Management Trust Cash Portfolio which carried a credit rating of AAAm by Standard and Poor's. The Town has no policy regarding  3. Receivable Allowances for Doubtful Accounts 30, 2020 are net oft the following allowances for doubtful accounts:  The amounts presented in the Balance Sheet and the Statement of Net Position for the year ending June  Fund None  June 30,2020 -0-  4. Capital Assets Primary Government  Capital asset activity fort the Primary Government fort the year ended. June 30, 2020:  Beginning Balances $  Ending  Increases (Decreases) Balances  Governmental activities: Capital assets not being depreciated: Construction! inp progress Capital assets being depreciated: Roadi improvements Building Otheri improvements Equipment andi furnishings Total capital assets being depreciated: Less, accumulated depreciationi for: Roadi improvements Building Other improvements Equipment Total accumulated depreciation Governmental activity capital assets, net  $ 828,646 $  $ 828,646 4 4,936,758 892,500 1,171,461 595,625 7,596,344 1,817,468 464,100 789,450 472,633 3,543,651 $4,881,341  $4 4,876,533 $ 60,225 $ 892,500 965,558 595,625 7,330,216 1,663,669 428,400 713,130 451,445 3,256,644  205,903 266,128 153,799 35,700 76,320 21,188 287,007  4,073,573 $ (20,879) $  30    Notes to the Financial Statements (continued)  4. Capital Assets Primary Government (continued)  Depreciation expense was charged to functions of the primary government as follows:  General government Gate operations Transportation  $74,023 16,973 196,011 $287,007  Beginning Balances  Ending  iIncreases Decreases Balances  Business-type activities: Sewer fund: Capital assets not being depreciated: Sewer construction Capital assets being depreciated: Plant and distribution Total capital assets being depreciated: Less, accumulated depreciation for: Plant and distribution Total accumulated depreciation  $  $  $  $ 3,313,403 3,313,403 1,365,221 1,365,221 $1,948,180  3,313,403 3,313,403 1,276,482 1,276,482  88,739 88,739  Business-type activity capital assets, net $2,036,919 $ (88,739) $  Construction commitments  The government has active construction projects as of June 30, 2020. At year-end, the government's  commitments with contractors are as follows:  Remaining  Project  Spent-to-date Commitment $ 828,646 $ 834,554  General Capital Project- US158  31    Notes to the Financial Statements (continued)  B. Liabilities:  1. Pension Plan Obligations:  a. Local Governmental Employees' Retirement System  Plan Description. The Town is a participating employer in the statewide Local Governmental Employees' Retirement System (LGERS), a cost-sharing muliple-employer defined benefit pension plan administered by the State of North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management oft the plan is vested in the LGERS Board of Trustees, which consists of 13 members - nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees' Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State's CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919) 981-5454, Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member's average final compensation times the member's years of creditable service. A member's average final compensation is calculated as the average of a member's four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age (15) years of creditable service fori firefighters and rescue squad members who are killed in the line of duty) or have completed five years of service and have reached age 60. Eligible beneficiaries may elect to receive ar monthly Survivor's Alternate Benefit for life or a return of the member's contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon LGERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries ofl LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive ar monthly Survivor's Alternate Benefit for life or a return oft the member's contributions. Contributions. Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. Town employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Town's contractually required contribution rate for the year ended. June 30, 2020, was 8.95% for general employees actuarially determined as an amount that, when combined with employee  or at www.0Sc.nc.gov.  actuarial gains oft the plan.  32    Notes to the Financial Statements (continued)  a. Local Governmental Employees' Retirement System (continued)  contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Town were! $17,973 for the year ended June 30, 4 2020. Refunds of Contributions - Town employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual's Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of At June 30, 2020, the Town reported a liability of $83,293 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2018. The total pension liability was then rolled forward to the measurement date of June 30, 2019 utilizing update procedures incorporating the actuarial assumptions. The Town's proportion of the net pension liability was based on a projection of the Town's long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2020, the Town's proportion was 0.00305% (measured as of June 30, 2019), which was a decrease of0 0.00029% fromi its proportion as of June 30, 2019 (measured as of June 30, 2018). For the year ended June 30, 2020, the Town recognized pension expense of $35,022. At. June 30, 2020, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions  right to employer contributions or any other benefit provided by LGERS.  Resources Related tol Pensions  from thei following sources:  Deferred Outflows Deferred Inflows  of Resources $  of Resources  Differences between expected and actual experience Net difference between projected and actual earnings on Changes in proportion and differences between Town contributions and proportionate share of contributions Town contributions subsequent to the measurement date  14,262 $ 13,575 2,032 694 17,973 48,536 $  Changes of assumptions pension plani investments  6,729 6,729  Total  $  33    Notes to thel Financial Statements (continued)  a. Local Governmental Employees' Retirement System (continued)  $17,973 reported as deferred outflows of resources related to pensions resulting from Town contributions subsequent to the measurement date will be recognized as a decrease oft the net pension asset in the year ended June 30, 2020. Other amounts reported as deferred inflows of resources related to pensions will be  recognized inj pension expense as follows:  Year ended. June 30: 2021 2022 2023 2024 2025 Thereafter  $  12,273 3,487 610 1,462  Actuarial Assumptions. The total pension liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions, applied to allp periods included in the measurement:  Inflation Salary increases Investment rate of return  3.0 percent productivity factor including inflation  3.50 percent to 8.10 percent, including inflation and 7.00 percent, net of pension plan investment expense,  The plan actuary currently uses mortality rates based ont the RP-2014 Total Data Set for Healthy Annuitants Mortality Table that vary by age, gender, employee group (ie. general, law enforcement officer) and health status (ie. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a The actuarial assumptions used in the December 31, 2018 valuation were based on the results of an actuarial experience study for the period January 1,2010 through December 31, 2014. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated forr multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies' return projections reflect the foregoing and historical data analysis. These projections 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 as of June 30, 2019 are  provision to reflect future mortality improvements.  included in the measurement.  summarized int the following table:  34    Notes to the Financial Statements (continued)  a. Local Governmental Employees' Retirement System (continued)  Long-Term Expected Real Rate of Return  Asset Class Fixed Income Global Equity Real Estate Alternatives Credit Inflation Protection Total  Target Allocation  29.0% 42.0% 8.0% 8.0% 7.0% 6.0% 100%  1.4% 5.3% 4.3% 8.9% 6.0% 4.0%  Thei information above is based on 30 year expectations developed with the consulting actuary for the 2018 asset, liability, and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting al long-term inflation Discount rate. The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members willl be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of Sensitivity oft the Town's proportionate share of the net pension asset to changes in the discount rate. The following presents the Town's proportionate share oft the net pension asset calculated using the discount rate of7.00 percent, as well as what the Town's proportionate share oft the net pension asset or net pension liability would bei ifit were calculated using a discount rate that is one percentage point lower (6.00 percent)  assumption of 3.00%. All rates of return and inflation are annualized.  projected benefit payments to determine the total pension liability.  or one percentage point higher (8.00 percent) than the current rate:  1% Decrease (6.00%) $  Discount Rate (7.00%)  1% Increase (8.00%) (5,823)  Town's proportionate share of the net pension liability (asset)  190,507 $  83,293 $  Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the State of North  Carolina.  35    Notes to thel Financial Statements (continued)  b. Law Enforcement Officers Special Separation. Allowance The Town contracts all security and has no eligible law enforcement employees.  C.S Supplemental Retirement Income Plan  The Town contracts all security and has no eligible law enforcement employees.  Plan Description. The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and al Board of Trustees. The Plan provides retirement benefits to employees employed by the Town. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Supplemental Retirement Income Plan for employees is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State's CAFR includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for employees. That report may be obtained by writing to the Office oft the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919)981-5454. Funding Policy. Article 12E of G.S. Chapter 143 requires the Town to contribute each month an amount equal to five percent ofe each employee's salary, and all amounts contributed are vested immediately. Also,  the employees may make voluntary contributions to the plan.  The Town made contributions of $3,6141 fort the reporting year. No amounts were forfeited.  d. Other Post-employment Benefits  The Town has note established policies concerning postemployment benefits as of June 30, 2020.  2. Deferred Outflows and Inflows of Resources Deferred outflows of resources are comprised of the following:  Source  Amount $ 14,262 13,575 2,032 694 17,973 48,536  Differences between expected and actuale experience Net difference between projected and actual earnings on Changes inj proportion and differences between employer contributions and proportionate share of contributions Town contributions subsequent to the measurement date  Changes in assumptions pension plani investments  Total  36    Notes to the Financial Statements (continued)  2. Deferred Outflows and Inflows of Resources (continued) Deferred inflows of resources at year-end are comprised of thet following:  Statement of Net General Fund  Position $  Balance Sheet $ 10,524  Taxes Receivable, less penalties (General Fund) Differences between expected and actual experience  Changes in assumptions  Changes in proportion and differences between employer contributions and proportionate share of contributions  6,729 6,729 $  Total  $  10,524  3. Risk Management  The Town is exposed to various risks of loss related to torts; theft or damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town participates in three self- funded risk financing pools administered by the North Carolina League of Municipalities. Through these pools, the Town obtains general liability and auto liability coverage of $3 million per occurrence, property coverage upt to $20 million per building per occurrence, workers' compensation coverage up to the statutory limits, and employee health coverage up to a $1 million lifetime limit. The pools are reinsured through commercial companies for single occurrence claims against general liability and auto liability in excess of $500,000, up to $500,0001 for property, and $250,000 up to $51 million for workers' compensation. The pools are reinsured for annual employee health claims in excess of $150,000. The property liability pool has an aggregate limit of $1,000,000 for the aggregate losses in as single year. After the property pool has paid out $1,000,000, then the pool will be liable for a $10,000 per claim maintenance deductible on future property The Town has a public officials bond of $50,000 on the Finance Officer and $10,000 on the Tax Collector.  losses fort that year. The remainder of each claim will be bome by the re-insurer.  The Town currently has no flood insurance coverage.  4. Long-Term Obligations: a. Changes in Long-term Liabilities Governmental activities: Installment Note Net Pension Liability (LGERS) Accrued Vacation  Balance $  Balance Current Portion  June 30,2019 increases Decreases June 30, 2020 of Balance  $ $ $ $ 79,236 4,057 83,293 4,637 1,671 2,966  $ 83,873 $ 4,057 $ 1,671 $ 86,259 $  37    Notes to the Financial Statements (continued)  a. Changes in Long-term Liabilities (continued)  Compensated absences for governmental activities have typically been liquidated in the General Fund. At. June 30, 2020, the Town of Bermuda Run had bonds authorized but un-issued of $-0- and a legal debt  margin of $45,154,027. C. Interfund Balances and Activity  Balances due to/from other funds at. June 30, 2020, consist of thei following:  Due to/from other funds: From To  General Fund General Fund Capital Project  $ 91,919 $ 91,919  Thei interfund balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded ini the accounting system, The General Fund has advanced the General Fund Capital Project Fund proceeds needed for various expenditures. The General Fund anticipates ar repayment arrangement after the project is completed.  and (3) payments between funds are made.  D. Net Investment in Capital Assets  Governmental Business-type $ 4,881,341 $ 1,948,180 $ 4,881,341 $ 1,948,180  Capital Assets less: long-term debt add: unexpended debt proceeds Net investment in capital assets E. Fund Balance  The following schedule provides management and citizens with information on the portion of General fund  balance thati is available for appropriation:  Total fund balance General Fund Less: Stabilization by State Statute Streets Powell Bill Remaining Fund Balance  $ 2,896,139  60,065 310,334 $ 2,525,740  38    Notes to the Financial Statements (continued)  E.F Fund Balance (continued)  The outstanding encumbrances are amounts needed to pay any commitments related to purchase orders  and contracts that remain unperformed at year-end.  Encumbrances  General Fund $0  Non-Major Funds  IV. Summary Disclosure of Significant Contingencies Federal and State Assisted Programs  The Town has received proceeds from several federal and State grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant moneys to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying  financial statements for the refund of grant moneys. V. Significant Effects of Subsequent Events  Subsequent events occurring after the statement of financial position date have been evaluated through October 4, 2020, which is the date the financial statements were available to bei issued. In. January 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a "Public Health Emergency of International Concern", which continues to spread throughout the world and has adversely impacted global commercial activity and contributed to significant declines and volatility inf financial markets. The coronavirus outbreak and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the coronavirus outbreak. The outbreak presents uncertainty and risk with respect to the Authority  andi its ability to carry outi its activities which could impact its financial results.  39    Town of Bermuda Run, North Carolina Required Supplementary Information Last Seven Fiscal Years *  Town of Bermuda Run's Proportionate Share of Net Pension Liability (Asset)  Local Government Employees' Retirement System  2020  2019  2018  2017  2016  2015  2014  Bermudal Run's proportion of ther net pension liability (asset) (%6) Bermuda Run's proportion of the net pension liability (asset) ($) Bermuda Run's covered-employee payroll Bermuda Run's proportionate share of the net pension liability (asset) as a percentage ofi its covered-employee payroll percentage oft the total pension liability**  0.00305% 0.00334% 0.00342% 0.00289% 0.00372% 0.00290% 0.00260% $83,293 $79,236 $_52,248 $61,335 $ 16,695 $(17,103) $30,555 $193,571 $186,423 $179,470 $146,070 $175,030 $162,623 $139,108  43.03% 42.50% 29.11% 41.99%  9.54% (10.52%) 21.96%  91.63% 94.18% 91.47% 98.09% 99.07% 102.64% 94.35%  The amounts presented for each fiscal year were determined as of thep priorf fiscal yeare ending. June 30. ** This will be the same percentage for all participant employers int thel LGERS plan.  40    Town of Bermuda Run, North Carolina Town of Bermuda Run's Contributions Required Supplementary Information Last Seven Fiscal Years  Local Government Employees' Retirement System  2020  2019  2018  2017  2016  2015  2014  Contractually required contribution $1 17,973 $ 15,002 $ 13,982 $ 13,012 $ 14,808 $ 12,375 $ 14,538  Contributions in relation to the contractually required contribution Contribution deficiency (excess) Bermuda Run's covered-employee Contributions as aj percentage of covered-employee payroll  17,973  15,002  13,982  13,012  14,808  12,375  14,538  payroll  $200,814 $193,571 $186,423 $179,470 $146,070 $175,030 $162,623  8.95%  7.75%  7.50%  7.25% 10.14%  7.07%  8.94%  41    Town of Bermuda Run, North Carolina For the Year Ended June 30, 2020  General Fund  Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual  (With Comparative Actual Amounts for the Year Ended June 30,2019)  Variance Favorable (Unfavorable)  Actual- -Year Ended June 30,2019 $ 836,701 4,990 2,520 844,211 544,616 544,616 195,109 7,334 11,666 214,109 63,191 154,616 217,807 20,874 36,154 100,000 136,154 1,977,770  Budget  Actual $ 843,867 993 1,391 846,251 486,533 486,533 203,404 6,505 11,462 221,372 61,896 166,000 227,896 33,392 36,050 100,000 136,050 1,951,494  Revenues: Ad Valorem taxes (net ofr refunds) Current levies Prior levies Penalties andi interest Other taxes andl licenses: Local option sales tax Unrestricted intergovernmental revenues: Utilities franchise tax Cable franchise Beer and wine tax Restricted intergovernmental revenues: Powell Bill allocation ABC revenues Investment earnings Other revenues: Otheri income Insurance proceeds  $ 836,000  $  10,251 8,533  478,000  178,000  43,372  213,000 10,000  14,896 23,392  Reimbursement for administrative charges  125,300 1,840,300 197,403 2,037,703  10,750 111,194 (197,403) (86,209)  Total Revenues Other financing sources: Appropriated fund balance Total revenues and other financing sources  1,951,494  1,977,770  42    Town ofE Bermuda Run, North Carolina  Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual (continued)  Variance Favorable (Unfavorable) June 30, 2019  Actual- Year Ended  Budget  Actual  Expenditures: General Government Governing Body Administration: Salaries and! Employee Benefits Operating Expenses Professional Services Tax collection fees Townh Hall expenses Capital outlay Election costs Community Services: Planning andz zoning Community ande economic development Ground/ general maintenance Leafr removal Waster removal Town projects Repairs storm water Post office Capital outlay Contribution tol DOT- pedestrian bridge Other Total General Government Safety- Community police program Transportation: Street Department: Engineering Repairs streets Other Street! lights Capitalo outlay Powell- street repairs Total Transportation Debts service: Principal Interest Total Expenditures Revenues over Expenditures Other Financing Sources (Uses) Transfer tog general capital project Transfer tov water ands sewer fund Excess ofr revenues and other sources over (under) expenditures and other uses Fund Balance: Beginning ofy Year, July1 Endo of Year, June 30  11,400 $ 10,850 $  550 $ 11,400  242,767 104,244 31,844 27,441 24,095 4,171 434,563 52,855 63,934 35,325 200,924 28,540 707 43,066 425,350 870,763 87,740 15,929 323,587 109,054 80,571 266,128 7,844 803,114  234,397 92,348 27,015 17,739 21,921 7,329 400,748 62,374 80,051 24,750 190,895 75,592 1,069 5,573 74,215 514,520 926,667 89,573 29,823 443,638 116,039 73,481 118,219 781,199  435,350  787  617,650 1,064,400 88,900  192,300 193,637 1,160  884,403  81,289  2,037,703  1,761,617 189,877  276,086 189,877  1,797,440 180,330  189,877 2,706,262 2,896,139  189,877  180,330 2,525,930 2,706,262  43    Town of Bermuda Run North Carolina General Capital Projects Fund - US158  Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual  From inception and for the fiscal year ended June 30, 2020  Actual Current Year  Variance Favorable (Unfavorable)  Project Authorization  Prior Year  Totalto Date  Revenues:  Capital contributions: Hillsdale Group Total revenues Expenditures: Road construction Righto ofv way Total expenditures Revenues over expenditures Other financing sources: Transfer from General Fund Powell Bill Transfer from General Fund Total other financing sources Revenues and other sources over (under) expenditures  770,000 $ 770,000  770,000 $ 770,000 $  770,000  770,000  1,540,000 123,200 1,663,200 (893,200) 123,200 770,000 893,200 $  767,046 61,600 828,646 (58,646)  767,046 61,600 828,646 (58,646)  772,954 61,600 834,554 (834,554) 123,200 770,000 893,200 58,646  (58,646) $ (58,646) $  44    Town of Bermuda Run, North Carolina Special Revenue Fund- Gated Security For the Year Ended June 30, 2020  Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual  (With Comparative Actual Amounts for the Year Ended June 30, 2019)  Variance Favorable (Unfavorable)  Actual -Year Ended June 30, 2019 $ 520,082 520,082  Budget  Actual $ 512,652 512,652  Operating revenues: Gate fees Insurance proceeds Fund balance appropriated Totalr revenue and other financing sources Operating expenditures: Administrative Gate operations expense Other Financing Sources (Uses) Transfer to capital project Total otheri financing sources (uses) Total expenditures and other financing uses Revenues over (under) expenditures Fund Balance: Beginning of year End ofy year  $ 513,000 31,250 544,250  $  (348) 31,250 30,902  512,652  520,082  50,000 478,237 528,237  50,000 464,564 514,564  544,250  16,013  544,250  528,237  16,013  514,564 5,518 218,020 223,537  $  (15,586) $ (15,586)  223,537 $ 207,952  45    Town of Bermuda Run, North Carolina Sewer Fund Fort the Year Ended June 30, 2020  Schedule of Revenues and Expenditures Budget and Actual- (Non-GAAP) (With Comparative Actual Amounts for the Year Ended June 30,2019)  Variance Favorable  Actual-Year Ended 546,697 2,550 549,247  Budget  Actual 527,122 850 527,972 $ (4,578)  (Unfavorable) June 30, 2019  Operating revenues: Sewer charges Tapi fees  532,550  Other financing sources: Transfer from general fund Appropriated fund balance Total revenue and other financing sources Operating expenditures: Administrative Licenses Charges from general fund Sewer operations: Plant operations Maintenance Repairs -plant Repairs lines Utilities Capital outlay Other  532,550  527,972  (4,578)  549,247  1,010 50,000 51,010 49,852 1,991 7,955 55,355 31,572 16,026 162,751 213,761  960 50,000 50,960 48,332 833 13,524 39,885 23,710 3,850 16,165 127,175 197,258  52,000  990  480,550 532,550  317,799 318,789  Total operating expenditures Other budgetary appropriations: Principal paid on! long-term debt Interest paid Total expenditures and budgetary appropriations Total revenue and other financing sources over (under) expenditures and budgetary appropriations  532,550  213,761  318,789  197,258  $  314,211  314,211  351,989  46    Town of Bermuda Run, North Carolina Sewer Fund (continued) Fori the Year Ended June 30, 2020  Schedule of Revenues and Expenditures Budget and Actual (Non-GAAP) With Comparative Actual Amounts for the Year Ended June 30, 2019)  2020 Actual  2019 Actual  Reconciliation of Modified Accrual Basis toF Full Accrual Basis:  Total Revenues and Other Financing Sources Total Expenditures and Budgetary Appropriations Excess of Revenues Over (Under) Expenditures Capital outlay Depreciation  $ 527,972  $ 549,247  213,761 314,211  197,258 351,989 3,850 (96,108)  (88,739)  Change ini net position  $ 225,472  $ 259,731  47    Town of Bermuda Run, North Carolina Schedule of Changes in Ad' Valorem Taxes Receivable Fort the Yeare ended June 30, 2020  Balance June 30,2019 $  Collections and Credits $ 840,762 1,781 (240) 38 292 372 (41) 81 3 (4) (1,178) 11 1,169 843,046  Balance June 30, 2020 $  Year ofLevy 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 2007-2008  Additions $ 846,638  5,876 1,374 533 498 390 15 179 236 155 71 1,197  3,155 293 536 682 387 138 317 158 67 19 11 1,169 6,932  $  846,638  $  Ad Valorem Taxes Receivable Net Reconcilement with Revenues: Tax- Ad' Valorem Adjustments  $ $ $  10,524 844,860 (1,814) 843,046  Total collections and credits  48    Town of Bermuda Run, North Carolina Analysis of Current Tax Levy Fort the Year Ended June 30, 2020  Totall Levy  Property excluding Registered Motor Vehicles $ 777,755 5,643  Registered Motor Vehicles $ 63,240  Property  Total  Valuation Rate Levy $5 560,663,333 0.15 $ 840,995  Taxl Levy Town Wide Discoveries Abatements and Releases Totalf for Year  3,762,000  5,643  $564,425,333  846,638 5,876 840,762 99.31%  783,398 5,876 777,522 99.25%  63,240  Less, Uncollected" Tax at. June 30, 2020 Current Year's Taxes Collected Percent Current Year Collected  $ 63,240  100.00%  49