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Borough of Media
Table of Contents
Managements Discussion Analysis
PAGE
iviii
INDEPENDENT AUDITORS REPORTS 12
BASIC FINANCIAL STATEMENTSEntitywide Financial Statements
Statement of Net Assets 3
Statement of Activities 4
Reconciliation of Total Government Fund Balances to Net Assets ofGovernment Activities 5
Fund Financial Statements
Balance Sheet Governmental Funds iStatement of Revenues Expenditures Changes in Fund BalancesGovernmental Funds 7
Reconciliation of Statement of Revenues Expenditures 8 Changesin Fund Balances of Govemmental Funds to Statement of Activities 8
Budgetary Comparison Statement General Fund 9
Statement of Net Assets Fiduciary Funds 10
Statement of Changes in Net Assets Fiduciary Funds 10
NOTES TO FINANCIAL STATEMENNTS 1131
Media Borough contains a wide array ofdepartments and offices including Code EnforcementFire Health Police Public Works and Recreation Departments
Code Enforcement The mission ofthe Code Enforcement Department is to enhance the overallpublic safety and welfare ofeveryone who lives works and visits the Borough ofMedia byenforcement ofall Borough Code The department investigates any and all propertymaintenance fire safety and life safety complaints as well as reviews and issues any and allbuilding mechanical electrical plumbing dumpster and sign permitsInspections on all commercial and residential properties are performed annually and use andoccupancy inspections are performed at the change ofownership and occupancy The CodeEnforcement Department also acts as the support for the Planning Commission ICC AppealsBoard and Zoning Hearing Board
Fire Department Anallvolunteer organization the Media Fire Hook Ladder Company No1 provides fire protection services to the Borough ofMedia and emergency ambulance service toMedia Upper Providence Township Rose Valley Borough and portions ofNether ProvidenceTownship and Swarthmore Borough The company responds to approximately 275 fire calls and1200 ambulance requests annually
Board ofHealth In addition to offering emergency assistance the company offers communityservices such as lecture and demonstration programs on fire prevention safety and escapeplanning for those living in multifamilydwellings and in singlefamily homes courtesyinspections ofhouses apartments and condominiums training in cardiopulmonary resuscitationskills for groups or individuals in highrisk situations smoke detector installation and batterychecking for Borough residents and consultation on home escape planning smoke detectorlocation fire extinguisher selection and placement and other elements ofpersonal fire safetyplanning
The Board ofHealth has the power and duty to enforce the laws ofthe Commonwealth theregulations ofthe State Department ofHealth and all ordinances ofthe Borough enacted to
prevent the introduction and spread of infectious or contagious disease to abate and remove allnuisances which the board shall deem prejudicial to the public health to mark infected houses or
places to recommend rules for the construction and maintenance ofhousedrains washpipessoilpipes and cesspools and to recommend all such other rules and regulations as shall bedeemed necessary for the preservation ofthe public health which have been approved byBorough Council
Police Department Is afullystaffed and open 24 hours a day yearround is centrally locatedon the corner ofThird and Jackson Streets It employs sixteen fulltime officers four fulltimedispatchers and three fulltime parking enforcement officers In addition the staff is alsosupported by several parttimecivilian employeesMedia police officers respond to approximately 900 calls per month The Department offersadditional services to the community underscoring its proactiveratherthanreactiveapproachto crime prevention
Public Works Department Provides many services to the Borough including but not limited totrash removal twice weekly bulk trash pickup monthly snow removal leafpickup through thefall and winter months sign installation landscaping ofBoroughowned property and variousother road improvements
Recreation BoardResponsible for outfitting operating and maintaining recreation programsand places in the Borough ofMedia These include Summer Day Camp annual holiday eventsbus trips and discount tickets to sports and entertainment venues and family and adult dances
OPERATIONS
The Borough has four 4 main funds General Fund Capital Fund Recreation Fund and LiquidFuels Fund Listed below is a summary ofthe Finance Committee recommendations to BoroughCouncil as it pertains to the adoption ofthe 2011 final budget
Revenues
Please note the General Fund is in balance and includes a transfer of65000 to the capitalreserve account at the end ofthe year for future fire apparatus and building maintenance at thefire house The budget also shows a contingency line item of60000 Annual recurringrevenues such as Act 511 taxesie earned income business privilege mercantile local servicesand transfer tax are projected to increase by approximately 95000 in 2011 The following areother revenues worth noting in 2011
Real Estate Property Taxes 1164000Act 511 Taxes Transfer EIT BP Mercantile LST 3455000 Increase ofapproximately 95000 or28Other Revenues worth noting
o Rental from Borough Owned Properties 712980o Parking Meters Fines Permits 850000
Assumption of38000 CPI increase in Aqua water ground lease5000 projected increase in building permits4500 projected increase in recycling performance grant from the state
7000 projected increase in state aid for pension plans15000projected for grant to update to the Comprehensive Plan12000 from healthcare contributions for Public Works Public Information Officers andnonunion personnel30000 increase in cable franchise fee with Verizon FIGSProjected reduction of22500 19 for police tickets fines and penalties
Expenditures
The following are anticipated increases in the 2011 operating budgetProjected232increase 161700 in the general fund budget in 2011808 increase in health insurance ifthe Borough stays with IBC
P
Borough of Media
Table of Contents
PAGE
ManagementsDiscussion 8 Analysis iviii
INDEPENDENT AUDITORS REPORTS 12
BASIC FINANCIAL STATEMENTS
Entitywide Financial Statements
Statement of Net Assets 3
Statement of Activities 4
Reconciliation of Total Government Fund Balances to Net Assets of
Government Activities 5
Fund Financial Statements
Balance Sheet Governmental Funds 6
Statement of Revenues Expenditures Changes in Fund Balances
Governmental Funds 7
Reconciliation of Statement of Revenues Expenditures Changesin Fund Balances of Govemmental Funds to Statement of Activities 8
Budgetary Comparison Statement General Fund 9
Statement of Net Assets Fiduciary Funds 10
Statement of Changes in Net Assets Fiduciary Funds 10
NOTES TO FINANCIAL STATEMENNTS 1131
MANAGEMENTSDISCUSSION AND ANALYSIS
BACKGROUND INFORMATION
The Borough ofMedia is located in the central section of Delaware County in the PhiladelphiaMetropolitan Area Covering an area of075 square mile Media is situated approximately 12
miles west ofdowntown Philadelphia and is bounded by the Township ofUpper Providence on
the west northwest and southwest and by the Township ofNether Providence on the eastnortheast and southeast
An interlocking system ofhighways serves the residents ofthe Borough with US 1 BaltimorePike and US 1 Bypass eastwest and State Routes 252 320 352 420 and 452 northsouthserving the area The MidCounty Expressway also known as Interstate 476 and the Blue
Route opened on December 19 1991 and connects Interstate 95 near the City ofChester on the
south with the Northeast Extension ofthe Pennsylvania Turnpike on the north traveling just to
the east ofMedia Two interchanges of the Blue Route serve the residents ofMedia Borough the
SwarthmoreMediaInterchange via US 1 and the SpringfieldLimaInterchange via US 1
Bypass
Facts and Figures
Population Approximately6000
Third and Jackson Streets Media PA 19063
6105665210
Fax 6105660335
Location
Incorporated as a borough March 10 1850 from Nether
and Upper Providence Townships Named for its
central location in the county
Area 75 square mile
68 residential
Composition 30commercial2 industrial
BOROUGH OF MEDIA
DELAWARE COUNTY
MEDIA PENNSYLVANIA
Shopping Areas
Parks and Recreation
School District
Distance to Center CityPhiladelphia
Public Transportation
Government
Representation
State Street and Baltimore Pike areas
John K Barran Park tennis courts baseball diamond
RoseTree Media School District6106276000
School Closing Number 542
20 miles or 30 minutes
Available by train bus and trolley
9th Senatorial District DominicFPileggi R6105659100168th Legislative District Tom H Killion R6103251541
7th Congressional District Joseph A Sestak D6108918956
2012 Taxes
Tpayer Bi11of Rights
Borough 30mills
School 222522 mills 20112012
RE Transfer
Income
Business Privilege
General Budget
Police Allocation
SERVICES
k
4 L
53000 mills
5
1 Collected bX Central Tax Bureau
LS mills Collected by Central Tax Bureau
75 mill whsl
75 mill retail Collected by Central Tax Bureau
7000000
3000000
The mission ofthe Borough ofMedia is to promote responsive municipal government services to
its citizens in an efficient and cost effective manner All services provided shall benefit the
health safety and welfare ofthe community
Media Borough contains a wide array ofdepartments and offices including Code EnforcementFire Health Police Public Works and Recreation Departments
Code Enforcement The mission of the Code Enforcement Department is to enhance the overall
public safety and welfare ofeveryone who lives works and visits the Borough ofMedia byenforcement ofall Borough Code The department investigates any and all propertymaintenance fire safety and life safety complaints as well as reviews and issues any and allbuilding mechanical electrical plumbing dumpster and sign permitsInspections on all commercial and residential properties are performed annually and use and
occupancy inspections are performed at the change ofownership and occupancy The CodeEnforcement Department also acts as the support for the Planning Commission ICC AppealsBoard and Zoning Hearing Board
Fire Department Anallvolunteerorganization the Media Fire Hook Ladder Company No1 provides fire protection services to the Borough ofMedia and emergency ambulance service to
Media Upper Providence Township Rose Valley Borough and portions ofNether ProvidenceTownship and Swarthmore Borough The company responds to approximately 275 fire calls and
1200 ambulance requests annually
Board ofHealth In addition to offering emergency assistance the company offers communityservices such as lecture and demonstration programs on fire prevention safety and escapeplanning for those living in multifamily dwellings and in singlefamily homes courtesyinspections ofhouses apartments and condominiums training in cardiopulmonary resuscitationskills for groups or individuals in highrisk situations smoke detector installation and batterychecking for Borough residents and consultation on home escape planning smoke detectorlocation fire extinguisher selection and placement and other elements ofpersonal fire safetyplanning
The Board ofHealth has the power and duty to enforce the laws ofthe Commonwealth theregulations of the State Department ofHealth and all ordinances of the Borough enacted to
prevent the introduction and spread ofinfectious or contagious disease to abate and remove all
nuisances which the board shall deem prejudicial to the public health to mark infected houses or
places to recommend rules for the construction and maintenance ofhousedrains washpipessoilpipes and cesspools and to recommend all such other rules and regulations as shall bedeemed necessary for the preservation of the public health which have been approved byBorough Council
Police Department Is afullystaffed and open 24 hours a day yearround is centrally locatedon the corner ofThird and Jackson Streets It employs sixteen fulltime officers four fulltimedispatchers and threefulltime parking enforcement officers In addition the staff is also
supported by several parttime civilian employeesMedia police officers respond to approximately 900 calls per month The Department offersadditional services to the community underscoring its proactiverather than reactiveapproachto crime prevention
Public Works Department Provides many services to the Borough including but not limited totrash removal twice weekly bulk trash pickup monthly snow removal leafpickup through thefall and winter months sign installation landscaping ofBoroughowned property and variousother road improvements
Recreation Board Responsible for outfitting operating and maintaining recreation programs
and places in the Borough of Media These include Summer Day Camp annual holiday events
bus trips and discount tickets to sports and entertainment venues and family and adult dances
OPERATIONS
The Borough has four 4 main funds General Fund Capital Fund Recreation Fund and LiquidFuels Fund Listed below is a summary ofthe Finance Committee recommendations to BoroughCouncil as it pertains to the adoption of the 2011 final budget
Revenues
Please note the General Fund is in balance and includes a transfer of65000 to the capitalreserve account at the end ofthe year for future fire apparatus and building maintenance at the
fire house The budget also shows a contingency line item of60000 Annual recurringrevenues such as Act 511 taxesie earned income business privilege mercantile local services
and transfer tax are projected to increase by approximately 95000 in 2011 The following are
other revenues worth noting in 2011
Real Estate Property Taxes 1164000Act 511 Taxes Transfer EIT BP Mercantile LST 3455000 Increase of
approximately 95000 or28
Other Revenues worth notingo Rental from Borough Owned Properties 712980o Parking Meters Fines Permits 850000
Assumption of38000 CPI increase in Aqua water ground lease
5000 projected increase in building permits4500 projected increase in recycling performance grant from the state
7000 projected increase in state aid for pension plans15000 projected for grant to update to the Comprehensive Plan
12000 from healthcare contributions for Public Works Public Information Officers and
nonunion personnel30000 increase in cable franchise fee with Verizon FIGS
Projected reduction of22500 19 for police tickets fines and penalties
Expenditures
The following are anticipated increases in the 2011 operating budgetProjected232 increase 161700 in the general fund budget in 2011
808increase in health insurance if the Borough stays with IBC
Approximate savings of80000 as a result of concessions on healthcare coverage for
Public Works and Public Information Officers Concessions include HMO coverage
only 1525prescription coverage from 48 and an employee contribution of3
toward the premium Nonunion staff have been on the HMO plan and will follow suit
with the prescription plan and employee contribution
Proposed salary increases for personnel0 375salary increase for Police
0 25salary increase for Public Works Public Information Officers and non
union staff
o Above projections will result in approximately 81500 approximately 52500in police department increases
Anticipated 7increase in PECO rates anticipated at 19500
Anticipated increase of28000 in pension MMO
Anticipated 10 increase or10000 in workers compensation insurance
Creation ofa ZHB budget of6500 in 2011 Removed from Codes budgetAnticipated 100 increase in sewer rates at3800The Library contribution was increased8200 to 98400 9increase5000 for future maintenanceenhancements to the fire house to be transferred to the
Capital Reserve Account
60000 for future fire apparatus to be transferred to Capital Reserve
9000 reduction in taxes on Armory and parking lotproperty as a result ofthe tax
assessment appeal agreementReduction of18000 in landfill costs in sanitation budget11000 increase for Shade Tree Commissiontrimming stump removal etc
Debt Service2003 Commerce Bank Note 8 years remaining @ 162500 each year
0 2011 Principal payment 1103000 2011 Interest payment 52300
2005 PNC Bank Note 10 years remaining @ 806000 2011 Principal payment 491000 2011 Interest payment 31500
ArmoryThe ninth often 10 annual installments ofapproximately 18000 for the
purchase of the Armory from the State Department ofGeneral Services DGSContingency line item remains at 60000
Insurance expenditures are listed by department in 2011 for the fourth year so you can get a feel
for the actual costs ofeach department
A new category 459 account for miscellaneous donations was created in 2010
Public Works DepartmentResurfacing ofvarious roads throughout the Borough 125000
Please note the total amount is 201000 with 101000 in Liquid Fuels FundPlease note 25000 is allocated for crosswalk repairs
Purchase ofleaf vacuum 35000Installationmaintenanceofstorm sewer piping drains etc 50000Third Street Bridge redesign 300000Sidewalk and curb repair and reimbursement to residents with sidewalkdamage by Borough trees 10500
SUBTOTAL 520500
Parking Facilities
Funds to maintenance the parking garage and parking lots 25000SUBTOTAL 25000
Recreation
Foot bridge @ Houtman Park and ADA enhancements to Barrall Park 50000SUBTOTAL 50000
Miscellaneous ProjectsFee paid to Linn Architects for CDBG funding for renovations to the theatre 6000Tree plantings by Shade Tree Commission 12000Waste veggie oil alternative fuel for public works diesel vehicles 5000Programmable thermostats at the Municipal Center 6000
SUBTOTAL 29000
LIQUID FUELS FUND
Liquid fuels funding will be approximately 101000 in 2011 which is received from theCommonwealth ofPennsylvania The Finance Committee is recommending the funds beexpended on road resurfacing in the amount of101000 This is a slight decrease273 from2010
RECREATION FUND
Please note a transfer from the general fund to the recreation fund in the amount of40000 isincluded in the 2011 budget Most of the expenditures in the Recreation Department are relatedto various programs offered throughout the year This is the third year that summer camp willbe administered by the Media Youth Center and a separate nonprofit organization will
coordinate the Media 5 Mile Race The total Recreation Fund revenue and expenditures are
anticipated to be57000 which is the same as 2010
CONCLUSION
In conclusion as previously mentioned and discussed the Boroughs cash flow position is
improving however there is uncertainty as the economy starts to show signs of improvementCouncil may want to consider the following in 2011
Creation ofa 5 year Capital Improvements Program CIP budget to include futurecapital projectsexpenditures from each department municipal buildings fire companyetc
Monitor the effects ofother municipalities assessing an earned income tax
Monitor future police pension costs
Disposition of 1 W State Street
By considering the above referenced items it may allow for meaningful dialogue to take placeon the future cash flow position ofthe Borough and how to plan for future capital expenditures
Borough Council may want to consider setting aside up to 5ofoperating revenues annually tomaintain a capital reserve fund which will allow for the creation ofa510year capitalimprovement plan CIP The CIP will serve as a blue print for future capital expenditures
Peterson ieo oCertifiedPublic Accountants
Richard M Peterson CPA 113 No Olive StreetGiorgio E Fieo CPA CFE Media Penna 19063
also licensed inNew Jersey 6105656307 office6105656920 fax
INDEPENDENT AUDITORS REPORT
To the Members of Borough Council
Media Pennsylvania
We have audited the accompanying financial statements of the government activities each major fundand the aggregate remaining fund information of the Borough of Media Pennsylvania as of and for the yearended 315 December 2011 which collectively comprise the Boroughs basic financial statements as listed in thetable of contents These financial statements are the responsibility of the Boroughs management Ourresponsibility is to express an opinion on these financial statements based upon our audit
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and Government Auditing Standards issued by the Comptroller General of the United States Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement An audit includes examining on a test basis evidence supportingthe amounts and disclosures in the financial statements An audit also includes assessing the accountingprinciples used and significant estimates made by management as well as evaluating the overall financialstatement presentation We believe that our audit provides a reasonable basis for ouropinion
In our opinion the financial statements referred to above present fairly in all material respects therespective financial position of the government activities each major fund and the aggregate remaining fundinformation of the Borough of Media Pennsylvania as of and for the year ended 31S December 2011 and therespective changes in financial position and the budgetary comparison for the general fund for the year thenended in conformity with accounting principles generally accepted in the United States of America
Our audit was conducted for the purpose of forming an opinion on the financial statements takencollectively which comprise the Borough of Medias basic financial statements The combining fund financialstatements are presented for purposes of additional analysis and are not a required part of the basic financialstatements The combining fund financial statements have however been subjected to the auditing proceduresapplied in the audit of the basic financial statements and in ouropinion are fairly stated in all material respectsin relation to the basic financial statements taken as a whole
The ManagementsDiscussion Analysis has not been subjected to the auditing procedures applied inthe audit of the basic financial statements accordingly we express no opinion thereon
Peterson Fieo Co26 July 2012
1
Peterson Fieo ChoCertifiedPublic Accountants
Richard M Peterson CPA 113 No Olive StreetGiorgio E Fieo CPAr CFE Media Penna 19063
also licensed in New Jersey 610 5656307office
6105656920 fax
INDEPENDENT AUDITORS REPORT ON COMPLIANCEINTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMEDIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Members of Council
Borough of Media
Media Pennsylvania
We have audited the accompanying financial statements of the government activities each major fundand the arggregate remaining fund information of the Borough of Media Pennsylvania as of and for the yearended 31S December 2011 and have issued our report thereon dated 261 July 2012
We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Govemment Auditing Standards issuedby the Comptroller General of the United States
Compliance
As part of obtaining reasonable assurance about whether the said financial statements are free ofmaterial misstatement we performed tests of its compliance with certain provisions of laws regulationscontracts and grants noncompliance with which could have a direct and material effect on the determination offinancial statement amounts However providing an opinion on compliance with those provisions was not anobjective of our audit and accordingly we do not express such an opinion The results of our tests disclosedno instances of noncompliance that are required to be reported under Government Auditing Standards
Internal Control Over Financial Reportin4
In planning and performing our audit we considered the Borough of Medias internal control overfinancial reporting in order to determine ourauditing procedures for the purpose of expressing ouropinion onthe financial statements and not to provide assurance on the internal control over financial reporting Ourconsideration of the internal control over financial reporting would not necessarily disclose all matters in theinternal control over financial reporting that might be material weaknesses A material weakness is a condition inwhich the design or operation of one or more of the internal control components does not reduce to a relativelylow level the risk that misstatements in amounts that would be material in relation to the financial statementsbeing audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions We noted no matters involving the internal control over financialreporting and its operation that we consider to be material weaknesses
This report is intended solely for the information and use of the Members of Council management andothers within the Borough of Media and is not intended to be and should not be used by anyone other thanthese specified parties
Peterson Fieo Co26x July 2012
2
Boroubof Media
Statement of Net Assets
as of December 31 2011
with Comparative Data as ofDecember 3l 2010Governmental Activities2011 2010
ASSETSCurrent Assets
Cash Cash EquivalentsTaxes ReceivableDue from Other Government FundsOther Receivables
Prepaid ExpensesTotal Current Assets
3559686 223419235000 35000
76211 76211110128 11475613395 190453794420 2 479204
NonCurrent AssetsLand
Capital Assets net of DepreciationTotal NonCurrent Assets
TOTAL ASSETS
LIABILITIES 8 NET ASSETSCurrent Liabilities
Accounts Payable Other Current LiabilitiesDeferred Revenue
Due to Other Govemment Funds
Compensated AbsencesNote Payable
Total Current Liabilities
NonCurrent Liabilities
Compensated AbsencesPost Employment Benefits PayableNotes Payable
Total NonCurrent Liabilities
TOTAL LIABILITIES
NET ASSETS
789849 7943499422018 946794910211867 10262298
14006287 12741502
793239 570698
41347 1476676211 7621143833 44679205485 198414
1160115 904768
394498 402111670478 500903
1308400 15138852373376 2416899
3533491 3321667
Invested in Capital Assets Net of Related Debt 8697982 8549999Unrestricted deficit 1774814 869836
Total Net Assets 10472796 9419835
TOTAL LIABILITIES NET ASSETS 14006287 12741502
The accompanying notes are an integral part of these financial statements3
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Reconciliation of Total Government Fund Balances to
Net Assets of Government Activities December31 2011
Total Governmental Fund Balancesp6
Amounts Reported for governmental activitiesin the Statement of Net Assets are different because
Capital Assets used in governmental activities are not financialresources and therefore are not reported as assest in govt fundsAccrued Payroll LiabilityCompensated Absences
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Post Employment Benefits PayableNotes Payable
Net Assets of Governmental Activitiesp3
3004766
10211867
121143438331
6704781513885
10472796
The accompanying notes are an integral part of these financial statements5
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rn rn O1 o D v v c1 Z E O aw W tL fn L O 2 m d mZ O1 CC1 N O Qf NJ Zy m U d J VI w wW N C U N C N
0 Q W N 7 7 7 7 7 N N W C tl Q W W f N m Q O C O
ii iL U f rn X O a aa v U X a S O X F m O wH w w w O a r t z LL a w
Borough of Media
Reconciliation of theStatement of Revenues Expenditures Changes in Fund Balances of
Governmental Fundsto the Statementof Activities
Amounts reported for the governmental activities in the statement
of activities are different because
Net Changes in Fund Balances total governmental fundsp7 1187237
Principal Payments on Bonds Notes Payable 198414
Expenditures for Capital Assets net of disposals 461893
Accrual for Payroll 121143
Accrual for PostEmployment Benefits 161116
Depreciation Expense claimed on GAAP Statement of Activities 512324
Changes in Net Assets of Govemmental Fundsp4 1052961
The accompanying notes are an integral part of these financial statements8
Boroueh of Media
Budgetary Comparison Statement General Fund
for the year ended December 31 2011
Final Actual Amounts
Appropriated Budgetary Variance
Budget Basis
REVENUES
Taxes 4635000 4813950 178950
Licenses Permits 354100 431499 77399
Fines Forfeits Costs 194000 181471 12529Interest Rents 730580 728665 1915Intergovernmental Revenues 316495 447024 130529
Charges For Sevices 8 Fees 930075 802904 127171Miscellaneous Revenue
TOTAL BUDGETED REVENUES 7160250 7405513 245263
EXPENDITURES CURRENT
General Government 972900 912057 60843
Public Safety 3537165 3370786 166379
Public Works Highways Streets 1019220 1062225 43005Public Works Sanitation 443900 376429 67471
Library 98400 98400
Culture Recreation 85600 75500 10100
Community Development 75500 75699 199
Insurance Employee Benefits PRTaxes c 275000 367893 92893
Not Classified
TOTAL EXPENDITURES CURRENT
DEBT SERVICE
PrincipalInterest
TOTAL DEBT SERVICE
TOTAL EXPENDITURES
EXCESSS of REVENUES OVER EXPENDITURES
Net Transfer to RECREATION FUND
Net Transfer to CAPITAL RESERVE
Net Transfer to CAPITAL FUND ACCRUED IN 2010
Net Transfer to CAPITAL FUND
NET TRANSFERS
NET CHANGE in FUND BALANCE
6507685 6338989 168696
197145 198414 126964120 62469 1651
261265 260883 382
6768950 6599872 169078
391300 805641 414341
40000 400003333 3333
400000 400000
351300 318498 32802
391300 761831 370531
43810 43810
The accompanying notes are an integral part of these financial statements9
Borough ofMedia
Statement ofNet Assets Fiduciary Funds as ofDecember 31 2011
with Comparative Data as ofDecember 3I 2010
Pension Trust Funds
ASSETS
Cash Cash Equivalents
TOTAL ASSETS
2011 2010
11294224 11540862
11294224 11540862
LIABILITIES 8 NET ASSETS
LIABILITIES
NET ASSETS
Held in Trust for Pension Benefits
Pool Participants
TOTAL LIABILITIES NET ASSETS
11294224 11540862
11294224 11540862
Statement ofChanges in Net Assets Fiduciary Funds
for the Year Ended December 31 2011
with Comparative Data for the YearEnded December 31 2010Pension Trust Funds
2011 2010
ADDITIONSContributions
State Aid
Employer Contributions
Employee Contributions
Total Contributions
285418 177916
261936 306684
114613 126206661967 610806
Investment EarningsRealized Gains net of lossesUnrealized Gains net of losses
Total Additions
REDUCTIONS
Benfits Paid
Administration ExpensesUnrealized Losses net of gains
Total Reductions
Change in Net Assets
Net Assets Beginning of Year
Net Assets End of Year
184899 179638
410467 220275764029
1257333 1774748
412969 46644076785 763511014217
1503971 542791
246638 1231957
11540862 10308905
11294224 11540862
The accompanying notes are an integral part of these financial statements
10
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
NOTE 1 SUMMARY ofSIGNIFICANT ACCOUNTING POLICIES
The Borough of Media presents its financial statements in accordance with generally acceptedaccounting principles GAAP which include all relevant Governmental Accounting Standards
Board GASB pronouncements The accounting and reporting framework and the more
significant accounting policies are discussed in subsequent subsections ofthis Note
Component Units The Borough used guidance contained in GASB Statement No 14 The
Financial Reporting Entity as amended by GASB Statement No 39 to evaluate the possibleinclusion of related entities eg authorities boards councils etc within its reporting entityiecomponent units The criteria used by the Borough for inclusion are financial accountabilityand the nature and significance of the relationships In determining financial accountability in a
given case the Borough reviews the applicability of the following criteria The Borough is
financially accountable for
Organizations that make up the legal Borough entity
Legally separate organizations if Borough officials both a appoint a votingmajority of the organizationsgoverning body and b are able to impose its will
on the organization or if there is a potential for the organization to providespecific financial benefits to or impose specific financial burdens on the
Borough as defined below
Impose its will If the Borough can significantly influence the programs
projects activities of or the level of services performed or provided by the
organization
Financial benefit or burden exists if the Borough1 is entitled to the organizationsresources or
2 is legally obligated or has otherwise assumed the obligation to fmance
the deficits of or provide support to the organization or
3 is obligated in some manner for the debt of the organization
Organizations that are fiscally dependent on the Borough Fiscal dependency is
established if the organization needs the concurrence of the Borough in order to
adopt its budget levy taxes set rates or charges or issue bonded debt
Based upon the above criteria the Borough does not have any component units
Basis ofPresentation Entitywide Financial Statements The Statement ofNet Assets and the
Statement of Activities display information about the Borough as a whole These statements
exclude fiduciary activities such as the pension funds The entitywide financial statements are
prepared using the economic resources measurement focus and the accrual basis of accountingUnder the accrual basis of accounting revenues are recognized when they are earned and
11
The total departmental allotment excluding capital expenditures is listed by department below
Police Department 3101250 4327 441 increaseCode Enforcement Department 213635 298 180 increaseAdministration Finance 561250 783 37decreaseFire Department 198180 277 247decreaseHealth Department 14250 020 0Public Works Department 1287370 1796 589decrease
o Sanitation 439900o Highway 822970o Snow removal 24500
CAPITAL FUND BUDGET REVENUES
2011 will be the fifth year that capital revenues and expenditures will be segregated from the
operating budget General Fund Borough Council decided previously on a threshold of5000cost with a useful life offive 5 years for capital items
The following is anticipated nonrecurring grantsrevenue for 2011
Third Street Bridge Design Reimbursement 300000 county and stateIt is anticipated that 351300will be transferred from the General Fund to the CapitalFund to help cover the costs of the projects listed below
No transfer from the Capital Reserve Fund anticipated for 2011 capitalprojectspurchasesAnticipated63decrease45650 from 2010 in Capital Fund
CAPITAL FUND BUDGET EXPENDITURESThe following is a list ofcapital expenditures by departmentcategory for 2011
Police
Purchase one 1new police vehicle 27000Purchase ofcomputers tasers etc 18525
SUBTOTAL 45525
Fire
Repair and renovations offire house steps 10000SUBTOTAL 10000
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTSDecember 31 2011
with comparative information as ofDecember 31 2010
within the current year or within 60 days from December 31S and available to pay obligations ofthe current period This includes investment earnings real estate taxes real estate transfer taxesearned income taxes and certain fees for services Revenues for projects funded by federal or
state funds are recognized at the time all eligibility requirements have been satisfied said
requirements include a timing requirements which specify the year when the resources are
required to be used or the year when use is first permitted b matching requirements in whichthe Borough must provide local resources to be used for a specified purpose and cexpenditurerequirements in which the resources are provided to the Borough on a reimbursement basis
Property taxes remaining unpaid 60 days after the close ofthe fiscal year though measurable are
not available soon enough in the subsequent year to finance current period obligationsTherefore property taxes remaining unpaid 60 days after the close of the fiscal year are not
recognized as income and recorded as a receivable until they are indeed received Likewiseother revenues including earned income taxes and certain other charges for services and
miscellaneous revenues are recorded as revenue when received because they are generally notmeasurable until actually received
Expenditure Recognition The measurement focus of governmental fund accounting is on
decreases in net financial resources expenditures rather than expenses Most expenditures are
measurable and are recorded when the related fund liability is incurred However principal andinterest on general longterm debt which has not matured are recognized when paid Further as
provided in GASB Interpretation No 6 Recognition and Measurement ofCertain Liabilitiesand Expenditures in Governmental Fund Financial Statements certain governmental fundliabilities and expenditures eg compensated absences are recognized to the extent theliabilities mature come due for payment each period Allocations of costs such as depreciationand amortization are not recognized in the governmental funds
Fiduciary Funds Trust FundsZ Fiduciary Funds or Trust Funds are used to account for assets
held by the Borough in a trustee capacity or as an agent for individuals private organizationsother governments andor other funds including Pension Trust Funds Pension Trust Funds are
accounted for in essentially the same manner as proprietary funds since the measurement of the
periodic net income and the determination ofcapital maintenance are critical
Budgets An annual appropriation budget is adopted for the general fund wherein all annual
appropriations lapse on December 31 S ofeach year Budgets are adopted on a cash basis
Cash Cash Equivalents The Borough ofMedia considers all highly liquid debt instrumentswith an original maturity ofthree months or less to be cash equivalents
Investments Investments are recorded at fair value
Accounts Receivable Accounts Payable Activity between funds that are representative of
lendingborrowing arrangements outstanding at the end ofthe fiscal year are referred to as eitherdue tofrom other fundsie the current portion of interfund loans or advancestofrom other
13
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
fundsie the noncurrent portion of interfund loans
Capital Assets Capital assets which include property plant equipment are reported in the
governmental activities column in the entitywide financial statements Capital assets are defined
by the Borough as assets with both an initial individual cost of more than 5000 and an
estimated useful life in excess of one year Such assets are recorded at historical cost if
purchased or constructed Donated capital assets are recorded at estimated fair value at the dateofdonation
Major outlays for capital assets and improvements are capitalized as projects are constructedinclusive ofancillary costs The costs ofnormal maintenance and repairs that do not add to thevalue ofthe asset or materially extend its useful life are not capitalized
Property plant equipment ofthe Borough are depreciated using the straightline method over
the following estimated useful lives
Land improvements 20 years
Buildings improvements 50 yearsFurniture equipment 520yearsInfrastructure 50 years
The Boroughsgeneral infrastructure assets consist of streets and roads and their related traffic
signals The Borough has capitalized the general infrastructure assets acquired on or after
January 1 2004 at their actual cost assets acquired before January 1 2004 were capitalized at
their appraised cost as part of the implementation of Statement of Governmental AccountingStandards 34
LongTermObli atgiIn the entitywide financial statements longterm debt and other longterm obligations are reported as liabilities Bonds payable are reported net of the applicable bond
premium or discount Bond premiums discounts and issuance costs are deferred and amortized
over the life ofthe bonds using the straightline method
In the fund financial statements governmental fund types recognize bond premiums discountsand bond issuance costs during the current period The face amount ofdebt issued is reported as
other financing sources Premiums received and discounts paid on debt issuances are reported as
other financing sources and uses Issuance costs whether or not withheld from the actual debt
proceeds received generally are reported as debt service expenditures except for refundings paidfrom proceeds which are reported as other financing uses
Fund Equity In the fund financial statements governmental funds report reservations of fundbalance for amounts that are not available for appropriation or are legally restricted by outside
parties for a specific purpose
Restricted Net Assets Restricted net assets are comprised ofassets net ofrelated liabilities that
14
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTSDecember 31 2011
with comparative information as ofDecember 31 1010
are legally restricted as to their use When both restricted and unrestricted resources are
available for use it is the Boroughspolicy to use restricted resources first and then unrestrictedresources as they are needed Administrative expenses are paid with the use ofunrestrictedresources
Compensated Absences The Boroughspolicy concerning vacation pay directs all vacation daysto be taken by the end of the calendar year Therefore there is no accrual for unused vacation
pay at December 31 2011
The Boroughspolicy regarding sick pay directs that upon retirement only a portion ofunusedsick time is paid out The payout of sick time is as follows
HighwayAdministration Department 50of the first 150 accumulated sick days20of 151 to 180 sick days0ofsick days in excess of 180 days
Police Department lesser ofa 100 days severance pay or
b 50ofaccumulated sick time
In accordance with the provisions of Statement of Governmental Accounting Standards 16Accounting for Compensated Absences a liability is recorded only for the vested portion ofaccumulated rights to receive sick pay benefits Historically Media Borough has estimated thecurrent portionie the portion to be paid within one year at 10 of the total accumulated
obligation Several employees are eligible to separate service and receive alumpsum paymentfor these benefits at a cost ofapprox 7500 the estimated maximum obligation due by the
Borough ifevery employee eligible for retirement separated service during 2012 is estimated atbetween90000 and 108000
Use of Estimates in the Preparation of Financial Statements The preparation of financialstatements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period Actual results coulddiffer from those estimates
Comparative Data Comparative totals for the prior year have been presented in the
accompanying financial statements in order to provide an understanding of changes in the
Boroughsfinancial position and operations Certain amounts presented in the prior year havebeen reclassified in order to be consistent with the current years presentation Howeverpresentation ofprior year totals by fund and activity type have not been presented in each ofthestatements since their inclusion would make the statements unduly complex and difficult to readSummarized comparative information should be read in conjunction with the Boroughsfinancial statements for the year ended December 31 2010 from which the summarizedinformation was derived
15
BOROUGH ofMEDIANOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
NOTE 2 DEPOSITS INVESTMENTS
Deposits Custodial credit risk is the risk that the Boroughsdeposits will not be returned in theevent ofa bank failure The Borough does not have a policy for custodial credit risk on depositsThe Borough is required by statute to deposit funds in depositories that are either banks bankinginstitutions or trust companies located within the Commonwealth of Pennsylvania To theextent that such deposits exceed federal insurance the depositories must pledge as collateral
obligations of the United States the Commonwealth of Pennsylvania or any politicalsubdivision of the Commonwealth Under Act 72 of 1971 as amended the depositories maymeet this collateralization requirement by pooling appropriate securities to cover all public fundson deposit
On December 31 2011 the carrying amount of the Boroughsdeposits was3559066 and thebank balances were3575334 Of these bank balances 266292 was covered by federal
depository insurance and3309042 was exposed to custodial credit risk because it was
uninsured and the collateral held by the depositorysagent was not in the Boroughsname
On December 31 2010 the carrying amount of the Boroughsdeposits was2233572 and thebank balances were2317895 Of these bank balances 265673 was covered by federal
depository insurance and 2052222 was exposed to custodial credit risk because it was
uninsured and the collateral held by the depositorysagent was not in the Boroughsname
Investments The Borough is authorized by statutes to invest in a obligations of the UnitedStates ofAmerica and agencies and instrumentalities ofthe United States and b obligations ofthe Commonwealth ofPennsylvania or any of its agencies or instrumentalities and c depositsin savings accounts or time deposits or share amounts of institutions insured by the Federal
Deposit Insurance Corporation the Federal Savings Loan Insurance Corporation or the
National Credit Union Share Insurance Fund Additionally the Borough may invest in shares ofan investment company registered under the Investment Company Act of 1940 whose shares are
registered under the Securities Act of 1933 provided that the all investments ofthat company are
also authorized investments for Borough funds The Borough is in compliance with this statute
The Pension Trust Funds are administered by the Pennsylvania State Association of BoroughsPSAB Retirement Trust which has responsibility for the exclusive management of the fund
and has full power to invest the monies therein subject to the terms conditions limitations and
restrictions imposed by law upon fiduciaries
As ofDecember 31 2011 and 2010 the Police Pension andNonUniformed Pension Plans hadinvested with PSAB 11294224 and 11540862 respectively which represents pooledinvestments comprised of domestic equity and fixed income securities Investments in externalinvestment pools are disclosed but not subject to interest rate custodial credit or concentrationrisks because they are not evidenced by securities that exist in physical or book entry form
16
BOROUGH ofMEDIA
NOTES toFINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31 2011 was as follows
Beginning EndingGovernmentalActivities
Balance Increases Decreases Balance
Capital Assets Not Being DepreciatedLand
Capital Assets Being DepreciatedLand ImprovementsInfrastructure
Buildings and improvementsFurniture Equipment
Total Assets Being Depreciated
Accumulated DepreciationLand ImprovementsInfrastructure
Buildings and improvementsFurniture Equipment
Total Accumulated Depreciation
Capital Assets Being Depreciated
794349 4500 789849
917542 302810 1220352
2520615 163583 26841989603833 4Q500 9563333
3053647 3053647
16095637 466393 40500 16521530
347381 63587 410968
254370 46121 300491
3041290 183987 40500 3184777
2984647 218629 32032766627688 512324 40500 7099512
9467949 45931 9422018
Capital asset activity for the year ended December 31 2010 was as follows
Beginning EndingGovernmental Activities
Balance Increases Decreases Balance
Capital Assets Not Being DepreciatedLand 794349 794349
Capital Assets Being DepreciatedLand Improvements 769663 147879 917542
Infrastructure 2482659 37956 2520615
Buildings and improvements 9555241 48592 9603833Furniture Equipment 2997428 56219 3053647
Total Assets Being Depreciated 15804991 290646 16095637
Accumulated DepreciationLand ImprovementsInfrastructure
Buildings and improvementsFurniture Equipment
Total Accumuated Depreciation
Capital Assets BeingDepreciated
289770 57611 347381
209002 45368 254370
2857303 183987 3041290
2754986 229661 2984647
6111061 516627 6627688
9693930 225981 9467949
17
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
Depreciation was charged to the following functions for the years 2011 2010
GovernmentalActivities
General Government
Public SafetyPublic Works Highways Streets
Public Works Sanitation
Health Welfare
Cuhure Recreation
Conucunity DevebpmentTotal Depreciation Expense
2011 2010
99526 93143238509 249541
111079 111079
20031 19685813 813
38301 38301
4065 4065
512324 516627
NOTE 4 INTERFUND RECEIVABLES PAYABLES TRANSFERS
The balance ofshortterm interfund receivablespayables at December 31 2011 was as follows
Due From Due To
Other Funds Other Funds
General Fund 150051
Highway Aid Fund 54912Recreation Commission Fund 21299
Capital Reserve Fund 15217 89057165268 165268
18
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTSDecember 31 2011
with comparative information as ofDecember 31 2010
Interfund transfers represent cash appropriations from the general fund to various other funds of
the Borough directed by the Borough Council The composition of interfitnd transfers for the
year ended December 31 2011 is as follows
Interfund Transfers cash
Transfers Out Transfers In
General Fund 150051 General Fund
Recreation Commission Fund Recreation Commission Fund
Highway Aid Fund Highway Aid Fund
Capital Reserve Fund 15217 Capital Reserve Fund
165268
Interfund Transfers accrued at 12312011Transfers Out
General Fund
Transfers In
400000 Capital Reserve Fund
NOTE 5 LONGTERMLIABILITIES
212995491289057165268
400000
In September 2003 the Borough entered into a note agreement with Commerce Bank to borrow
1800000 for the purpose ofproviding funds for various capital projects This note matures in
2018 and requires monthly principal and interest payments in the amount of13547 at 375
percent interest
In February 2003 the Borough entered into a sales agreement to purchase the Media Armoryfrom the Commonwealth of Pennsylvania The original amount of the note was 156750
payable in ten equal installments of15750 plus accrued interest at225 This note matures in
2013
In November 2005 the Borough entered into an agreement with PNC Bank to borrow 910000for the purpose ofproviding funds for various capital projects This note matures in 2020 and
requires monthly payments ofprincipal and interest in the amount of6720 at392interest
19
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
The annual debt service requirements to maturity are as follows
Principal Interest Total
2012 205485 54099 2595842013 212830 46402 259232
2014 204781 38423 243204
2015 212702 30502 243204
2016 220934 22270 24320420172020 457153 26385 483538
2021 0 0
1513885 218081 1731966
Schedules of changes in longterm liabilities for the years ended December 31 2011 2010 are
as follows
Governmental Activities Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Year Ended 12312011
Notes Payable 1712299 198414 1513885 205485
Compensated Absences 446790 8459 438331 43833
PostEmployment Benefits 500903 169575 670478
Total LTFinancing 2659992 169575 206873 262214 193 I K
Year Ended 12312010
Notes Payable 1905540 193241 1712299 198414
Compensated Absences 404384 42406 446790 44679
PostEmpbyment Benefits 249438 251465 500903
Total LTFinancing 2559362 293871 193241 2659992 243093
The general fund is responsible for the payment ofthese liabilities
NOTE 6 TAXES
For 2011 the Borough levied a general fund real estate tax of 3 mills30 of the assessed
value of real estate located within the Borough due January 1 2011 the taxable assessedvaluation ofproperty for 2011 is 390328966 Invoices for this real estate tax were mailed on
February 1 2011 Tax payments received through March 31 2011 were granted a2discountthose received after May 31 2011 are subject to a 10 penalty Taxes remaining unpaid on
20
BOROUGH of MEDIA
NOTES to FINANCIAL STATEMENTSDecember 31 2011
with comparative information as ofDecember 31 2010
December 31 2011 were submitted to Delaware County for tax liens
Other taxes levied in 2011
Real Estate Transfer ofsale priceEarned Income Tax 1 ofnet income
Mercantile TaxGross Receipts Tax ofWholesalers of75 millsGross Receipts Tax ofRetailers of75 mills
Business Privilege Tax Gross Receipts Tax ofService Retailers of1z millsLocal Services Tax formerly Emergency Municipal
Services Tax 52 per person employed within Borough limits
NOTE7 POLICE PENSION FUND
eneral All of the Boroughsfulltime police employees participate in the Pennsylvania StateAssociation of Boroughs Municipal Retirement Trust PSAB defined benefit pension plan as
established by Borough Ordinance No 691 as amended The Trust is established under the
pension plans of members of the Pennsylvania State Association of Boroughs and OtherSubdivisions ofthe Commonwealth ofPennsylvania
Benefit Provisions Employees attaining the age of 50 who have completed 25 years of serviceare entitled to a monthly benefit equal to 50 percent of average monthly compensation averagedover the last 36 months ofemployment Active employees who become disabled due to servicerelated events receive 100 percent oftheir wages at the time oftheir retirement less a credit to the
Borough ofany amount paid under the WorkersCompensation Law Benefits vest after 12 yearsof service This benefit is based on the ratio ofservice actually completed at date ofterminationto services that would have been completed at retirement date
Police are required to contribute five percent oftheir annual salary to the PSAB The Borough is
required to contribute the remaining amounts necessary to fund the PSAB using the entry agenormal actuarial method as specified in Act 205
Plan Membership Actuarial valuation report Form 205 is filed with the Public EmployeeRetirement Commission on a biennial basis The most recently filed Form 205 disclosed that
pension plan membership consisted ofthe following as of its actuarial date January 1 2011
Active Employees 16
Retirees and beneficiaries currently receiving benefits 6Total 22
Method Used to Value Investments In accordance with GASB No 25 investments are
reported at fair value Securities traded on a national or international exchange are valued at thelast reported sales price at current exchange rates
21
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as of December 31 2010
The Actuarial Cost Method used is the Entry Age Normal methodAdministrative Costs Administrative costs including the investment manager custodial trustee
and actuarial services are charged to the plan and paid from pension funds
Contributions Act 205 requires that annual contributions be based upon the minimum
municipal obligation MMO The MMO is based upon the plans biennial actuarial valuation
The state provides an allocation offunds which must be used for pension funding Any financial
requirement established by the MMO which exceeds the state and employee contributions must
be funded by the employer in accordance with Act 205
During the years ended December 31 2011 2010 the following contributions were receivedin accordance with contribution requirements determined by the actuary of the plan
for the Year Ended December 31 2011 2010
Employer Contributions 306684 306684Employee Contributions 73784State Contributions 82345 82345
Trend Information Actuarial information is required to be reported biennially by Act 205except for distressed pension plans which require annual reporting The historical information
required to be disclosed is as follows
Unfunded assets
YearActuarial Actuarial Unfunded Annual in excess of
Value of Accrued Percentage assets in excess of Covered Accrued LiabilityAssets Liability Funded Accrued Liability Payroll as a ofPayroll
1Jan04
1JanOS 4416562 5431681 813 t015119 1200796 845
1Jan06
Jan07 5326542 6898414 772 1571872 1275872 1232
Jan08
1Jatt09 5867037 6564417 894 697380 1391318 5011Jan0
1Jan11 6746942 9262969 728 2516027 1391318 1808
NOTE 8 NONUNIFORMED PENSION FUND
General Substantially all of the fulltime nonuniformedie nonpolice employeesparticipate in the Pennsylvania State Association of Boroughs Municipal Retirement Trust
PSAB defined benefit pension plan as established by Borough Ordinance No 504 as amendedThe Trust is established under the pension plans of members of the Pennsylvania State
Association of Boroughs and Other Subdivisions ofthe Commonwealth of Pennsylvania
22
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
Benefit Provisions Employees attaining the age of 62 are entitled to a 1 of averagecompensation times years of service prior to January 1 1981 plus b 1125 of averagecompensation times years of service after December 31 1980 and prior to January 1 1992 and
c20of average compensation times years of service after December 31 1991 with themaximum of 70 pension benefit Average compensation is the total wages paid by the
employer averaged over the final 12 months of employment Employees who become disabledreceive the accrued benefit at the date ofdisablement Effective January 1 2003 the Borough ofMedia increased employee pensions to 2total compensation for all years of service Thisbenefit applies to those employees currently employed by the Borough ofMedia
Borough employees participating in this plan are required to contribute 55of their annual
salary to the PSAB The Borough is required to contribute the remaining amounts necessary to
fund the PSAB using the entryagenormal actuarial method as specified in Act 205
Plan Membership Actuarial valuation report Form 205 is filed with the Public EmployeeRetirement Commission on a biennial basis The most recently filed Form 205 disclosed that
pension plan membership consisted ofthe following as of its actuarial date January 1 2011
Active Employees 20
Retirees and beneficiaries currently receiving benefits 10
Deferred 3
Total 33
Method Used to Value Investments In accordance with GASB Statement No 25 investmentsare reported at fair value Securities traded on a national or international exchange are valued atthe last reported sales price at current exchange rates
The actuarial cost method used is the Entry Age Normal method
Administrative Costs Administrative costs including the investment manager custodial trustee
and actuarial services are charged to the plan and paid from pension funds
Contributions Act 205 requires that annual contributions be based upon the minimum municipalobligation MMO The MMO is based upon the plans biennial actuarial valuation The state
provides an allocation of funds which must be used for pension funding Any financial
requirement established by the MMO which exceeds the state and employee contributions must
be funded by the employer in accordance with Act 205
During the years ended December 31 2011 2010 the following contributions were received inaccordance with contribution requirements determined by the actuary ofthe plan
23
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTSDecember 31 2011
with comparative information as ofDecember 31 2010
for the Year Ended December 31 2011 2010
Employer Contributions
Employee Contributions 50283 52422State Contributions 95571 95571
145854 147993
Trend Information Actuarial information is required to be reported biennially by Act 205except for distressed pension plans which require annual reporting The historical information
required to be disclosed is as follows
Unfunded Unfunded assetsActuarial Actuarial Accrued Liability Annual in excess of
Value of Accrued Percentage Fxcess Funded Covered Accrued LiabilityYear Assets Liability Funded Liability Pa roll as a ofPa roll
1Jan04
1JanOS 3748291 3708254 1011 40037 866136 46
1Jan06 s
IJan07 4247727 4261802 997 14075 999275 14
IJan08
1Jan09 4418621 4713244 937 294623 1072244 275
1Jan10 s
1Jan11 473Q306 5373916 880 643610 1072244 600
not available
NOTE 9 CONTINGENT LIABILITIES
The government is a defendant in various lawsuits Although the outcome ofthese lawsuits is not
presently determinable in the opinion ofthe governmentslegal counsel the resolution of thesematters will not have a material adverse effect on the financial condition of the government
NOTE 10 SALE ofWATERWORKS SYSTEM
On May 18 1995 the Borough of Media Media enacted an asset purchase agreement with
Philadelphia Suburban Water Company PSW now Aqua PA for the sale of its waterworks
system The purchase price paid by PSW to Media for the Media water system assets was
25891878 as summarized in the Asset Purchase Agreement
Further on May 23 1995 PSW and Media executed a lease for approximately 63 acres wherebythe lessee PSW shall hold the leased property for a term ending on December 31 2045expiration date unless extended or terminated sooner as outlined in the signed lease
agreement Lessee at its sole option may extend the lease for two additional terms of50 yearseach on the terms and provisions contained in the lease by providing the lessorie the
24
BOROUGH ofMEDIANOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
Borough with notice ofsuch extension 180 days prior to the expiration date
The annual rentals from the lessee are as follows
A For the period January 1 2006 through December 31 2010 lessee shall pay lessor thesum of 380923 per year in advance For each subsequent fiveyear period throughDecember 31 2045 the rent shall be adjusted based on the consumer price index CPIas discussed in Section 2 of the lease agreement and pursuant to the following formula
New rent old rent x CPI adjustment factorCPI adjustment factor new CPI divided by old CPI
This formula provided a 10 increase in the rental payment due January 1 2011The remaining lease payments are as follows
Year Ended December 312012 4190152013 4190152014 4190152015 4190152016 419015
20172021 209507520222026 209507520272031 209507520322036 209507520372041 209507520422045 1676060
14246510
Note These payments have not been adjusted based on consumerprice index CPIas provided in the lease forperiods beyond 2016
B The rent for the premises is divided among the parcels comprising the leased propertyand the easement property as set forth in Exhibit D of the lease agreement In the eventthat lessee elects to exercise a contraction option as set forth in Article N of the leaseagreement then the rent shall be adjusted and prorated commencing on the date that thecontraction option is effective
NOTE 11 SALE ofSEWER SYSTEM
On April 5 2001 Little Washington and Media executed the asset purchase agreement for thesale of the Boroughswastewater system The purchase price paid by Little Washington was
25
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
4063117 as summarized in the asset purchase agreement
Further on April 6 2001 Little Washington and Media executed a lease for approximately 12
acres ofland The lessee Little Washington shall hold the leased property for a term ending on
December 31 2052 expiration date unless extended or terminated sooner as outlined in thelease agreement Lessee at its sole option may extend the lease for two additional terms of50years each on the terms and provisions contained in the lease by providing the lessor with noticeofsuch extension 180 days prior to the expiration date
Annual rentals are due in advance on January ls of each year During the first through fifthcalendar years of the term commencing January 1 2003 annual rentals were due at the rate of56780 For each subsequent fiveyear period through December 31 2052 the rent shall beadjusted based on the consumer price index CPI as discussed in Section 2 of the leaseagreement and pursuant to the following formula
New rent old rent x CPI adjustment factorCPI adjustment factor new CPI divided by old CPI
The remaining term lease payments are as follows
Year Ended December 31201 Z 567802013 567802014 567802015 567802016 56780
20172021 28390020222026 28390020272031 28390020322036 28390020372041 28390020422046 28390020472051 283900
2052 56780
2327980
Note These payments have not been adjusted based on consumerprice index CPIas provided in the lease
26
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTSDecember 31 2011
with comparative information as ofDecember 31 2010
NOTE 12 SALE ofBOROUGH PROPERTY
On August 19 2011 the Borough the site ofits historic former borough hall facility located at 1
W State Street in Media Borough for 670000 thereby incurring expenses of sale of40215net proceeds 629785 Prior to the sale the basis value ofthis property had been reflected inthe Boroughsfinancial statements as 4500 for the cost of the land with the remaining valuesof40500 associated with the construction of the building being fully depreciated throughoutthe years prior to 2011 Accordingly these financial statements reflect a net gain of625285In additional several items of furniture fixtures equipment from the property were sold
separately providing the Borough with an additional5100
From time to time the Borough removes property eg vehicles furniture fixtures etc from
service and places same up for sale During 2011 such sales provided the Borough 2200 inadditional to the sales mentioned above
NOTE 13 LEASES
The Borough entered into agreements to lease its Armory building and the Media Theater Theleases expire at various times through July 31 2014 The annual rents from the lessees are as
follows
Year Ended December 312012 1925012013 1925012014
Total 385002
NOTE 14 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
In 2009 the Borough adopted Government Accounting Standards Board Statement No 45Accounting andFinancial Reporting by Employers forPostEmployment Benefits Other Than
Pensions This Statement establishes standards for the measurement recognition and displayof other postemployment benefits OPEB expensesexpenditures and related liabilities
assets note disclosures and if applicable required supplementary information in the financial
reports of state and local governmental employers
Plan Description The Borough selfadministers its singleemployer other postemploymentbenefit program with benefits as follows
Police Employees Eligible employees include those police officers who retire either aat or after normal retirement age with at least 20 years of service or b after age 50 with 25
years of service OPEB for these employees consist ofpremium payments on health vision
27
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTSDecember 31 2011
with comparative information as ofDecember 31 2010
dental 10000 term life insurance and prescription drug benefits at a rate of 100 for the
retiree and 50 for spouse and dependents for the lesser of 10 years or becoming Medicare
eligible
Other employees Other eligible employees include those full time employees who retire
at are after age 62 OPEB for these employees consist ofpremium payments on health visiondental and 10000 term life insurance and prescription drug benefits at a rate of 25 for the
retiree and spouse until age 65
Funding Policy The contribution requirements of the Borough are established and may be
amended by the Borough Council Thus far it has not been the Boroughspolicy to annuallydesignate resources to fund these obligations in the amount of the liability that it recognizes for
the year which in turn is computed according to the 30year method Instead the Borough has
been using the pay as you go method thereby funding current obligations through its generalfund appropriations There are no required contributions on the part of the program participantsie retirees
Annual OPEB Cost Net OPEB Obligation The Boroughsannual OPEB cost expense is
calculated based on the annual required contribution ARC of the employer an amount
actuarially determined in accordance with GASB Statement No 45 The ARC represents a level
of funding that if paid on an ongoing basis is projected to cover normal cost each year and
amortize any unfunded liabilities or funding excess over a period not to exceed 30 years The
following table shows the components of the Boroughsannual OPEB cost for the year the
amount actually contributed during the year and changes to the Boroughsnet OPEB obligation
28
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
Annual Required Contribution ARC 78617Interest on Net OPEB Obligation 18665
30year amortization of UAAL
Unfunded actuarial accrued liability 154768
Annual OPEB Cost Expense 252050
Contributions Made payasyougoexpds 82475
Increase in Net OPEB Obligation 169575
Net Recognized OPEB Obligation Jany1 2011 500903
Net Recognized OPEB Obligation December 31 2011 670478
The Boroughsannual OPEB cost the percentage of annual OPEB cost contributed to the planand the net OPEB obligation for the year ended December 31 2011 was as follows
Fiscal Year Ended December 31 2011
Annual OPEB Cost 252050
Percentage ofOPEB Cost Contributed 327Net OPEB Obligation 670478
Funding Status Funding Progress
The funded status of the plan as ofDecember 31 2011 the most recent actuarial valuation datewas as follows
Actuarial accrued liability AAL
Actuarial value ofplan assets
Unfunded actuarial accrued liability UAAL
Funded ratio
Covered payroll
UAAL as percentage ofcovered payroll
2520999
25220999
0
2492126
985
29
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
The Borough has estimated its total obligation at 2zmillion As anemployeradministeredplan there are no mandated contributions to fund these OPEB obligations other than
expenditures made on thepayasyougobasis
Actuarial valuations ofan ongoing obligation involve estimates ofthe value ofreported amountsand assumptions about the probability of occurrence of events far into the future Examplesinclude assumptions about future employment mortality and the healthcare cost trendAmounts determined regarding the funded status of the obligation and the annual requiredcontributions of the employer are subject to continual revision as actual results are comparedwith past expectations and new estimates are made about the future The schedule of fundingprogress presented as required supplementary information following the notes to the financial
statements presents multiyear trend information about whether the actuarial value of the planassets is increasing or decreasing over time relative to the actuarial accrued liabilities forbenefits
Actuarial Methods Assumptions Projections ofbenefits for financial reporting purposes are
based on the substantive plan the plan as understood by the employer and the plan membersand include the types ofbenefits provided at the time of each valuation The actuarial methodsand assumptions used include techniques that are designed to reduce the effects of shortterm
volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the longterm perspective ofthe calculations
In calculating the December 31 2011 valuation the entry age normal actuarial cost method was
used The actuarial assumptions included a45discount rate investment rate of return net ofadministrative expenses which is a blended rate of the expected longterm investment returnson plan assets and on the employersown investments calculated based on the funded level of
the plan at the valuation date Initial cost trend assumptions for annual healthcare insurance
prescription costs are based on 8increase in 2011 with a declining rate increase of05eachof the next 5 yearsie 75increase for 2012 7increase for 2013c and remaining at a
5increase for 2016 and thereafter Insurance costs for the dental and vision benefits are
estimated to increase at a constant 5annual rate The UAAL is being amortized on the LevelDollar open basis with anendofyear interest component The remaining amortization periodat December 31 2011 is twentyseven 27 years These values were obtained from the
Boroughsactuarial study commissioned as ofJanuary 1 2010
NOTE 15 PRIOR PERIOD ADJUSTMENTS STATEMENT ofREVENUESEXPENDITURES CHANGES in FUND BALANCES GOVERNMENTAL FUNDS p 7
During 2011 the Borough recognized a decrease in its stated liabilities an offsetting increase toits fund balance for the removal of its recorded obligation for compensated absences from theStatement of Revenues Expenditures Changes in Fund Balances Governmental Fundsfound on page 7 It is the Boroughsposition that this particulaz statement is prepared on the
30
BOROUGH ofMEDIA
NOTES to FINANCIAL STATEMENTS
December 31 2011
with comparative information as ofDecember 31 2010
cash receipts basis ofaccounting and presenting this longterm liability therein is not consistent
with the principles thereof This statement presentation is now consistent with the financial
statements presented in the BoroughsMunicipal Annual Audit Financial Report to the
Pennsylvania Department ofCommunity Economic Development
The Boroughsobligation for compensated absences continues to be presented in the StatementofNet Assets p3 increases and decreases thereto will continue to be reflected in the StatementofActivitiesp4 which are both prepared on the accrual basis ofaccounting in accordance with
Generally Accepted Accounting Principles
which is a comprehensive basis of accounting other than GenerallyAccepted Accounting Principles wherein
revenues and the related assets are recognized when received rather than when earned and expenses are recognizedwhen paid rather than when obligations are incurred
31
DCEDCLGS04ANNUAL REPORT OF MUNICIPAL AUTHORITIES 2011
Commonwealth of PennsylvaniaDepartment of Community and Economic Development
GovernorsCenter for Local Government Services
4th Floor Commonwealth Keystone BuildingHarrisburg Pennsylvania 17120022518882236837
FAX 7177831402
FACE SHEET
Current Information
Authority Name MEDIA BUSINESS AUTHORITY
Authority Address 301 N JACKSON ST 2ND FL
Telephone Number
Fax Number
Name of Contact Person
EMailAddress
Title
Filing Status
1 Active
2 Inactive
5 Terminated
MEDIA PA
19063
610 5665039
KEVIN SCHRAMM
PRESIDENT
X
Date Authority Organized yearFiscal Year Ends monthday
SIGNATURE
TITLE
Corrected Information
231568
Authority Type08 Business District
1985 Date Authority Terminates year1231 Number of Employees
full time equivalentpart time equivalent
PHONE
2035
1
0
SEE REVERSE SIDE FOR GEOGRAPHICAL AREAS SERVED BY AUTHORITY
OPERATING AUTHORITIES BALANCE SHEET
FISCAL YEAR ENDING DEC 2011
ASSETS
CURRENT ASSETS
Cash 2 379
Investments
Accounts receivable
Inventories
Other current assets
TOTAL CURRENT ASSETS
RESTRICTED ASSETSTRUST FUNDS
DEFERRED CHARGES
FIXED ASSETS
Property plant equipment at cost
Less accumulated depreciationConstruction work in progress
Other fixed assets
NET FIXED ASSETS
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
Accounts payableAccrued payroll withholdingsAccrued interest payableCurrent portion of longterm debt
Other current liabilities
TOTAL CURRENT LIABILITIES
LONGTERM DEBT less current portionTOTAL LIABILITIES
FUND EQUITY
CONTRIBUTED CAPITAL
Governmental grantsOther contributions
TOTAL CONTRIBUTED CAPITAL
4y5o
ssS z
55 Zo to
3 89 9
S aoy
RETAINED EARNINGS
Reserved
Unreserved
TOTAL RETAINED EARNINGS
TOTAL FUND EQUITY
TOTAL LIABILITIES FUND EQUITY
2 3 Sblo
3 8Z9
0 3l0
8I9
Z3Sb
231568
2 ybS
S 9q
z3 sG
3z YCvs
BUSINESS DISTRICT
OPERATING AUTHORITIES
STATEMENT OF INCOME AND EXPENDITURES
OPERATING REVENUES
231568
Sale of Servicesusercharges 38 z95
Operating Grants State
Federal
Local government operating subsidies 7 ooa
Interest income 3
Other operating revenues zoo
TOTAL OPERATING REVENUES 2 2 5
OPERATING EXPENSES
Cost of sales and services q 8 ya
Administration Salaries l0 3 39 Z
Other Costs la tzS
Depreciation Z 9s
Other operating expensesg
TOTAL OPERATING EXPENSES 2 SS3
OPERATING INCOME LOSS3
NONOPERATING REVENUES
Capital Grants State
Federal
Proceeds of sale of fixed assets
Proceeds of borrowingsOther nonoperating revenues
TOTALNONOPERATING REVENUES
NONOPERATING EXPENSES
Debt service payments interest only
Constructionsextension of system
Major equipment purchasedOther nonoperating expenses
TOTAL NONOPERATING EXPENSES
TOTAL NONOPERATING REVENUE LOSS
NET INCOME BEFORE EXTRAORDINARY ITEMS 5 0 73
EXTRAORDINARY GAIN LOSSNET INCOME 5 73
RETAINED EARNINGS beginning of year y93RETAINED EARNINGS end of year
DEBT STATEMENT
231568
OUTSTANDING BONDS AND NOTES
Listed below are all currently outstanding bond and note issues according to our files excluding bond
issues redeemed or refunded and defeased Please show the principal payments and make any other
necessary corrections and additions
Issue Original Outstanding Principal
Type Bond B Date Amount Beginning Paid This Outstanding Final
Purp Note N mmyy of Issue of Year Year at Year End Year
a
Total bonds and notes outstanding
Capitalized lease obligationsOther debt
TOTAL OUTSTANDING DEBT
Minus assets held in debt service funds bond reserve funds and bond
redemption funds
Minus lease rental payments receivable
NET DEBT
DEC2011
KEVIN SCHRAMM PRESIDENTMEDIA BUSINESS AUTHORITY
301 N JACKSON ST 2ND FL
MEDIA PA 19063
Annual Report of Municipal Authorities Filing Information
Who Must File Section 8 of the Municipalities Authorities Act 53 PS 310 requires each authority organizedunder the Act to file an annual report of its fiscal affairs with the Department of Community and Economic
Development DCED In addition this section requires each authority to have its accounts audited by a
Certified Public Accountant and submit acopy of the CPA audit along with the annual report
Inactive Authorities All authorities are required to file reports Authorities which are inactive that have had
no financial activity in the last fiscal year should so state in the appropriate box on the first page of the form
and return it to DCED Inactive authorities are not required to submit a CPA audit nor complete the financial
portions ofDCEDCLGS04If the authority has been terminated during the fiscal year please so inform us
Terminated Authorities If the authority has been officially terminated during the fiscal year please inform
us Official termination requires a filing with the Pennsylvania Department of State Corporation Bureau
Authorities Organized Under Other Acts DCED requests authorities organized under enabling legislationother than the Municipalities Authorities Act to voluntarily file reports to improve the completeness of our
financial statistics for all local jurisdictions
What Must Be Filed Each authority must file acompleted form DCEDCLGS04plus a copy of their CPA
audit Reference on the form to the CPA audit is not acceptable the form must be completed fully Everyauthority with financial activity must have a CPA audit and file acopy of the audit report with their Annual
Report
When to File Form DCEDCLGS04and the CPA audit report must be completed and filed within 180 daysof the end of the authoritysfiscal year
Where to File Copies of form DCEDCLGS04and copies of the CPA audit report must be filed in the
following places
One copy to the Department of Community and Economic DevelopmentOne copy to the local governmentsmunicipality county or school district creating the authorityOne copy to remain on file in the authority office open to public inspection
Computer Generated Forms Authorities may substitute their own computergenerated forms for the
Balance Sheet Statement of Income and Expenditures and Debt Statement and attach them to the Face
Sheet for filing Any computergenerated forms must be identical in format and information to form
DCEDCLGS04Substitution of the Face Sheet is not acceptable
Instructions for Completing DCEDCLGS04
Face Sheet The form sent to you includes data on file for your authority in our database Please correct and
update any data provided on the Face Sheet If the purpose of the authority has been changed or expandedplease indicate Please note any additions or deletions to the service area of the authority The report must
be signed by the individual responsible for filing the report This can be either an authorized officer of the
authority or the auditor If the authority is submitting computergenerated forms for the Balance SheetStatement of Income and Expenditures and Debt Statement it must attach them to the Face Sheet providedfor filing substitution of the Face Sheet is not acceptable
Operating Authorities Balance Sheet Each operating authority must complete a combined Balance Sheet
for the financial status of the authority as of the end of the fiscal year This Balance Sheet combines all funds
of the authority If the authority is both an operating and a financing authority complete a separate Balance
Sheet for each function
Operating Authorities Statement of Income and Expenditures Complete aseparate statement for each
principal authority purpose such as water sewer recreation airport mass transit or other purpose Combine
all funds of the same purpose type For instance submit a single Statement of Income and Expenditures for
all sewer activities but a separate statement for water activities if the authority is a multipurpose sewer and
water authority
Financing Authorities Balance Sheet Each financing authority must complete a combined Balance Sheet
for the financial status of the authority as of the end of the fiscal year This Balance Sheet combines atl funds
of the authority If the authority is both an operating and a financing authority complete aseparate Balance
Sheet for each function
Financing Authorities Statement of Income and Expenditures Complete a separate statement for each
major financing purpose combining all projects of asimilar type For instance if an authority finances both
hospitals and higher education facilities it should complete a single combined Statement of Income and
Expenditures for all hospital projects and a separate single combined Statement of Income and Expendituresfor all higher education projects
Debt Statement Each authority with outstanding debt must complete a Debt Statement The Debt Statement
is prepopulated with a listing of outstanding debt as of the beginning of the fiscal year Add any new debt
incurred during the fiscal year to the Statement Please include the purpose of the debt using the code
numbers on the Face Sheet
For Further Assistance
For additional information on completing or filing form DCEDCLGS04please call the GovernorsCenter for
Local Government Services at18882236837
Thank you for completing and filing the form Your cooperation will assist DCED in improving the reporting of
local government finances in Pennsylvania
ANNUAL REPORT OF MUNICIPAL AUTHORITIES TIP SHEET
PLEASE NOTE Section 8 of the Municipalities Authorities Act as originally stated is back in full
effect after Act 230 of 2002 was ruled unconstitutional Acopy ofthe CPA audit is once againrequired to befiled along with the Annual Report ofMunicipal Authorities
The following items are common problems we have found in processing the Annual Report of Municipal Authorities
DCEDCLGS04In order to reduce these problems and preclude our need to contact you we areproviding youwith this Tip Sheet Before mailing your Annual Report please review it to make sure it is complete and does not
contain the following errors
GENERAL INFORMATION
Has the individual completing the Report signed the bottom of the Face Sheet adding Title and Phone NumberAuthorities may substitute their own computergenerated forms for the Balance Sheet Statement of Income and
Expenditures and Debt Statement and attach them to the Face Sheet for filing Anycomputergenerated forms
must be identical in format and information to form DCEDCLGS04Substitution of the Face Sheet is not
acceptableDo all subtotals and totals add correctly on the Balance Sheet and the Statement of Income and ExpendituresAre the figures rounded to the nearest dollar
Are there any line items crossed outandor new ones added If so please review these and place the amounts on
the appropriate line item already on the Report Please see reverse side for common line items
COMPARISON OF THE BALANCE SHEET TO THE STATEMENT OF INCOME AND EXPENDITURES
For operating authorities Does the Total Retained Earnings on the Balance Sheet equal the Retained
Earnings end of year on the Statement of Income and ExpendituresFor financing authorities Does the Total Fund Balance on the Balance Sheet equal the Fund Balance end of
year on the Statement of Income and Expenditures
If there is a valid reason why these amounts do notmatch please provide afootnote and written explanation
COMPARISON OF RETAINED EARNINGS BEGINNING OF YEAR OR FUND BALANCE BEGINNINGOF YEAR TO THE PREVIOUS YEARSFNDOF YEAR BALANCE
For operating authorities Does the Retained Earnings beginning of year on the Statement of Income and
Expenditures equal the previous years Retained Earnings end of yearFor financing authorities Does the Fund Balance beginning of year on the Statement of Income and
Expenditures a ual the previous years Fund Balance end of year
If there is a valid reason why these amounts do notmatch please provide afootnote and written explanation
COMPARISON OF THE BALANCE SHEET TO THE DEBT STATEMENT
The Current portion of longterm debt plus the LONGTERM DEBT less current portion should equal the
Total bonds and notes outstanding on the Debt Statement
Ifthere is a valid reason why these amounts do notmatch please provide afootnote and written explanation
Keep in mind those Annual Reports that do not meet the above criteria will be mailed back to the appropriateauthority to be corrected and resubmitted If we encounter any additional problems in processing the Report we will
make 3 attempts to contact the authority by phone If we do not get a response in a reasonable amount of time the
Report will be mailed back to the authority
Should you have any questions please feel free to contact the GovernorsCenter for Local Government Services at
1888223b837 Thank you for your cooperation in this matter
over
Listed below are common line items used by operating and financing authorities and the appropriate line item that
should be used on the Annual Report of Municipal Authorities
FOR OPERATING AND FINANCING AUTHORITIES BALANCE SHEET ITEMS
LINE ITEMS USED BYAUTHORITIES LINE ITEM ON THE ANNUAL REPORT
Accrued interest receivable Accounts receivable
Prepaid expensesOther current assets
Bond discountslcost
Debt retirement amount Restricted assets trust funds
Accrued expense payable Accounts payableEscrow a able
Deferred Revenue Other current liabilities
FOR OPERATING AUTHORITIES ONLY BALANCE SHEET ITEMS
LINE ITEMS USED BY A UTHORITIES LINE ITEM ON THE ANNUAL REPORT
Lease rental a ments receivable Accounts receivable
Development costs Other fixed assets
Net of accumulated amortization
Net of Amortization Governmental rants
Fund balance of pensions Other contributions
Fixed assets gain loss
De reciation on fixed assets
FOR OPERATING AND FINANCING AUTHORITIES STATEMENT OF INCOME AND EXPENDITURES
GINS ITEMS USED BY A UTHORlTIES LINE ITEM ON THE ANNUAL REPORT
Ta in fees Other o eratin revenues
Amortization unless related to interest on bond
issue
Depreciation
Contributions in aide Other nono eratin revenues
Debt Service payments interest only for operatinauthorities principal interest for financing
authorities
Amortization of bond interest
Debt service payments
Loss on sale of fixed asset Other nono eratin ex enses
De reciation on contributed ca ital Extraordina ain loss
Peterson ieo ChoCertified Public Accountants
Richard MPeterson CPA
Giorgio E Fieo CPA CFE
also licensed inNew Jersey
113 No Olive Street
Media Penna 19063
610 5656307 office
610 5656920 fax
INDEPENDENT AUDITORSREPORT
To the Board ofDirectors
Media Fire CompanyMedia PA 19063
We have audited the accompanying Statement of Cash Receipts Disbursements of the Media Fire
Company a notforprofit organization Tax Account for the year ended 31S December 2011 This financial
statement is the responsibility ofthe organizationsmanagement Our responsibility is to express an opinion on
the financial statement based on our audit
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America These standards require that we plan and perform the audit to obtain reasonable assurance about
whether the Statement of Cash Receipts Disbursements is free ofmaterial misstatement An audit includes
examining on a test basis evidence supporting the amounts and disclosures in the statement ofcash receipts and
disbursements An audit also includes assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall presentation of the statement of cash receipts and
disbursements We believe that our audit provides a reasonable basis for our opinion
As described in note A this financial statement has been prepared on the cash receipts disbursementsbasis of accounting which is a comprehensive basis of accounting other than generally accepted accountingprinciples
In our opinion the Statement ofCash Receipts Disbursements referred to above presents fairly in all
materially respects the cash receipts disbursements of the Media Fire Company Tax Account for the yearended31December 2011 on the basis ofaccounting described in note A
ls December 2012
wwwpetersonfieocom
Media Fire Company Tax Account
Statement of Receipts Disbursements
Year Ended 31 December 2011
CASH RECEIPTS
Borough Reimbursements for Truck PaymentsAnnual Fund Drive
Transfered from Ambulance Fund
Interest Revenue
TOTAL CASH RECEIlTS
CASH DISBURSEMENTS
Repair Refurbishing ofEquipmentLoan Repayment to ReliefFund
Truck PaymentsOther Administrative Expenses
TOTAL CASH DISBURSEMENTS
11000645
1057830427722
562
INCREASE DECREASE in CASH
BEGINNING CASH
ENDING CASH
8
11653
21904
10251
17605
7354
The accompanying notes are an integral part ofthis financial statement
p2
MEDIA FIRE COMPANY TAX ACCOUNT
NOTES to FINANCIAL STATEMENTS
31 S December 2011
A Siificant Accounting Policies This statement is prepared on the cash receiptsdisbursements basis of accounting which is a comprehensive basis of accountingother than generally accepted accounting principles This method accounts for all
receipts and all disbursements regardless of longterm effects of the receipt or
disbursement eg loan proceeds are recorded as receipts with no accounting for the
related liability and equipment purchases and retrofittings are recorded as
disbursements with no accounting for the capital asset nature of the disbursement
Additionally revenues are recognized when received rather than when earned and
expenses are recognized when paid rather than when incurred
B Cash Balances Cash balances at 31S December 2011 are as follows
Checking Account 6191Savings Account 1163Total 7 54
C Loan Pa ents Two loans are being paid from the Fire Company Tax Account
namely one to the Commonwealth for the purchase of a truck loan and the other to
the Relief Fund a related organization Payments on these loans during the year
ended 31S December 2011 are as follows
Principal Interest Total
Commonwealth ofPenna 6748 974 7722Relief Fund 2634 407 3041
Total 9382 1381 10763
D BorouhReimbursements As of 31S December 2011 the Fire Company received
11000 from Media Borough and deposited same into the Fire Company checkingaccount The remaining 1000 ofMedia Boroughs contribution total 12000 is
presumed to be a deposit in transit such is not reflected in these financial statements
p3
Borough ofMedia Tax CollectorReconciliation ofTax Collectors Account
for the period1February2011 through31January2012
A 2011 assessment per County memorandum2011 tax rate
Expected Tax Levy
B Expected Tax Levyadjustment for discounts grantedadjustment for penalties received
less unpaid taxes per report
Expected Remittance to Borough
Actual Remittances to Boroughless amounts from 2010 outstanding at31Jany2011
Net Remittance to Boroughvariance
C Total Amounts Collected
adjustments for chargebacks refundsNet Amount Collected
Total Amount Paid to Media Boroughless amounts from 2010 outstanding at 31Jany2011plus amounts outstanding at31Jany2012
Current Year Amounts Remitted to Media BoroughAmount Due Excess Paid to Media Borough
D Cash Balance per Bank1Febry2011Cash Checks DepositedInterest Income
less Chargebacks Refunds
subtotal
Total Amount Paid to Media Boroughplus amounts outstanding at31Jany2012
subtotal
Cash Balance per Bank31Jany2012See attached accountants report
3903289660003
11707
1170987174995327
27851
1126700
4000
1130964
1122700
o
1129351
58791123472
1126700
4000
112935125
5879
1126700
1122700
772
5052
1123497
1126700
1849
Peterson ieo ChoCertified Public Accountants
Richard M Peterson CPA
Giorgio E Fieo CPA CFE
also licensed in NewJersey
113 No Olive Street
Media Penna 19063
610 5656307 office
610 5656920 fax
INDEPENDENT AUDITORS REPORT
To the Board ofDirectorsMedia Business AuthorityMedia Pennsylvania
We have audited the accompanying Statement ofNet Assets of the Media Business Authorityas of 31S December 2011 along with the related Statement ofChanges in Net Assets and Statement ofCash Flows for the year then ended These financial statements are the responsibility ofthe Boroughsmanagement Our responsibility is to express an opinion on the financial statements based upon our
audit
We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates ofAmerica Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free ofmaterial misstatement An audit includes
examining on a test basis evidence supporting the amounts and disclosures in the financial statements
An audit also includes assessing the accounting principles used and significant estimates made bymanagement as well as evaluating the overall financial statement presentation We believe that our
audit provides a reasonable basis for our opinion
In our opinion the financial statements referred to above present fairly in all material respectsthe financial position of the government activities of the Media Business Authority as of 31S
December 2011 and for the year ended in conformity with accounting principles generally accepted in
the United States ofAmerica
The Managements Discussion Analysis is not a required part of the basic financialstatements but is rather supplementary information required by generally accepted accountingprinciples in the United States of America The Media Business Authority has not presented a
Managements Discussion Analysis in these financial statements
Peterson Fieo Co
12 June 2012
wwwpetersonfieocom
rS
Media Business AuthorityStatement ofNet Assets
as ofDecember 31 2011
with Comparative Data asoJDecember 31 2010
2011 Total Total
Unrestricted Restricted 2011 2010ASSETS
Cash Cash EquivalentsInventoryCapital Assets net of
accumulated depreciation
TOTAL ASSETS
LIABILITIES NET ASSETS
LIABILITIES
Accounts PayableAccrued PayrollTotal Liabilities
NET ASSETS
Invested in Capital Assetsnet of related debt
Unrestricted
Restricted
TOTAL NET ASSETS
TOTAL LIABILITIES NET ASSETS
27379 27379 125144450 4450 5168
636 636 7931
32465 32465 25613
3899 3899 21205000 5000 50008899 8899 7120
636 636 7931
22930 22930 10562
23566 23566 18493
32465 32465 25613
The accountants report and accompanying notes are an integral part of these financial statements
page 2
Media Business AuthorityStatement ofChanges in NetAssets
for the Year Ended December 31 2011
with Comparative Data for the Year Ended December 31 2010
REVENUES
Contributions from Borough of MediaGross Margin from Special Events
Advertising RevenueGross Margin from Sales of InventoryMiscellaneous
Expense Recovery from Prior YearTOTAL REVENUES
EXPENDITURES
Salaries
Advertising Promotion
DepreciationUtilitiesProfessional Services
WebpageSupplies Materials
Miscellaneous
TOTAL EXPENDITURESEXPENSES
CHANGE IN NET ASSETS
NET ASSETS
Beginning of Year
Prior Period Adjustment rounding
2011 Total TotalUnrestricted Restricted 2011 2010
75000 75000 7500038915 38915 254267260 7260 4065
970 970 3231 31 39
1000122176 122176 105562
63392 63392 6373541425 41425 368857295 7295 88511643 1643 1951
425 425 13751057 1057 856323 323 5801543 1543 866
117103 117103 115099
5073 5073 9537
18493 18493 28030
End of Year 23566 23566 18493
The accountants report and accompanying notes are an integral part of these financial statements
page 3
Media Business AuthorityStatement ofCash Flow
for the Year Ended December 31 2011
with Comparative Data for the Year Ended December 31 2010
Total
2011
Change in Net Assets 5073
Adjustments to Reconcile Change in Net Assets
to Net Cash Provided Used by OperatingActivities
Depreciation Expense 7295
Increase Decrease in Inventory 718
Increase Decrease in Accounts Payable 1779Total Adjustments 9792Net Cash Provided Used by Operating Activities 14865
Cash Provided Used by Investing Activities
Cash Provided Used by Financing Activities
Net Increase Decrease in Cash 14865
Cash beginning of year 12514
Cash end of year 27379
Other InformationInterest Paid
Income Taxes Paid
Total
2010
9537
8851629
1599
110791542
1542
10972
12514
The accountants report and accompanying notes are an integral part of these financial statements
page 4
MEDIA BUSINESS AUTHORITY
NOTES to FINANCIAL STATEMENTS31st December 2011
NOTE 1 PURPOSE ORGANIZATION
The Media Business Authority hereinafter the Authority was established by theBorough ofMedia in 1985 pursuant to the Pennsylvania Municipalities Act of2d May 1945
PL 382 to improve the business district of the Borough The Authoritys charter will
expire in 2035
NOTE 2 REPORTING ENTITY
In evaluating the Authority as a reporting entity the Authority has addressed all
potential component units for which the Authority may or may not be financially accountableand as such be includable within the Authoritys financial statements The Authority isfinancially accountable if it appoints a voting majority of another organizationsgoverningboard and a it can impose its will on said organization or b there is a potential for theother organization to provide specific financial benefit to or impose specific financial burdenon the Authority Additionally the Authority is required to consider other organizations forwhich the nature and significance of their relationship are such that exclusion would cause thereporting entitys financial statements to be misleading or incomplete There are no entitiesthat meet the above criteria and therefore the financial statements of the Authority consistonly of the funds ofthe Authority
NOTE 3 SUMMARY of SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation The Authority adheres to the provisions of GASB No 34Basic Financial Statements and Managements Discussion and Analysis for State and
Local Governments and GASB No 38 Certain Financial Statement Note DisclosuresStatement No 34 established standards for external financial reporting for all state and localgovernmental entitles which includes a Statement of Net Assets a Statement of Changes inNet Assets and a Statement of Cash Flows It requires the classification ofnet assets intothree components a invested in capital assets net ofrelated debt b unrestricted and crestricted These classifications are defined as follows
a Invested in capital assets net of related debt This component of net assets
consists of capital assets including restricted capital assets net of accumulateddepreciation and reduced by the outstanding balances of any bonds mortgages notes
or other borrowings that are attributable to the acquisition construction or
improvement of those assets Ifthere are significant unspent related debt proceeds at
year end the portion of the debt attributable to the unspent proceeds are not includedin the calculation of invested in capital assets net ofrelated debt Rather that portionof the debt is included in the same net assets component as the unspent proceeds
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MEDIA BUSINESS AUTHORITY
NOTES to FINANCIAL STATEMENTS31St December 2011
b Restricted This component of net assets consists of constraints placed on net
asset use through external constraints imposed by creditors such as through debt
covenants grantors contributors or laws or regulations of other governments or
constraints imposed by law through constitutional provisions or enabling legislationIt is comprised of assets net ofany related liabilities
c Unrestricted net assets This component of net assets consists of net assets
that do not meet the definition of restricted or invested in capital assets net of
related debt Administrative expenses are paid with the use ofunrestricted resources
Financial Statement Presentation The Authority complies with generally acceptedaccounting principles applicable to governmental units and applies all relevant Governmental
Accounting Standards Board GASB pronouncements In addition the Authority appliesFinancial Accounting Standards Board FASB pronouncements and Accounting PrinciplesBoard APB opinions issued on or before 30hNovember 1989 unless those pronouncementsconflict with or contradict GASB pronouncements in which case GASB pronouncementswill prevail The Authority has elected not to follow FASB pronouncements issued since that
date
Measurement Focus The statement of net assets and the statement of activities
entitywide statements are prepared using the economic resources measurement focus and
the accrual basis ofaccounting Revenues are recognized when they are earned and expenses
are recognized when they are incurred The fund financial statements are presented using the
modified accrual basis of accounting and the current financial resources measurement focus
Under this basis revenues are recognized in the accounting period in which they become
measurable and available Expenditures are recognized in the accounting period in which the
liability is incurred ifmeasurable
Capital Assets The Authority defines capital assets as assets with an initialindividual cost ofmore than 500 and an estimated useful life in excess ofone year Capitalassets of the Authority are recorded at either their actual cost or estimated historical cost
Donated assets are valued at their estimated fair value on the date donated Currently all
capital assets ofthe Authority are categorized as equipment with depreciation thereon beingcomputed using the straightlinemethod over an asset life of five years Major additions and
improvements are capitalized while expenses for maintenance and repairs that do not add
value to the asset or materially extend asset lives are charged to operations as incurred
Depreciation ofall exhaustible capital assets is charged as an expense against operations
Use of Estimates in the Preparation of Financial Statements The preparation of
financial statements in conformity with generally accepted accounting principles requiresmanagement to make estimates and assumptions that affect the reported amounts ofassets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting periodActual results could differ from these estimates
page 6
MEDIA BUSINESS AUTHORITY
NOTES to FINANCIAL STATEMENTS
31g December 2011
NOTE 4 CASH CASH EQUIVALENTS
All of the Authoritys cash was deposited in demand accounts at FDIC insured
financial institutions where all deposits were fully insured At 31S
December 2011 and 31S
December 2010 the carrying amounts of the Authoritysdeposits were 27379 and 12514
respectively and the bank balances were 33481 and7799 respectively
NOTE 5 INVENTORY
The Authority carries an inventory of clothing eg hats shirts etc and other
souvenir items The Authority reports its inventory at the lower of its cost or resale value on
an average cost basis
Year Ended Dec 31
2011 2010
Gross Receipts from Sales of InventoryCost of Inventory for resale
Cost ofBeginning InventoryPurchases ofMerchandise for Resale
Cost ofEnding Inventory for Resale
Total Cost of Inventory for Resale
Gross Margin from Sale of Inventory
NOTE 6 CHANGES in CAPITAL ASSETS
4583 3970
5168 5797
2895 3309
4450 51683613 3938
970 32
Changes in Capital Assets for the years ended 31S December 2011 2010 are as
follows
December 31 2011Beginning AdditionsofYear
EquipmentAccumulated
DepreciationCapital Assets Net
55842
EndDeletions
ofYear
55842
47911 7295 55206
7931 7295 636
page 7
MEDIA BUSINESS AUTHORITY
NOTES to FINANCIAL STATEMENTS31S December 2011
NOTE 6 CHANGES in CAPITAL ASSETS contd
December 31 2010 Begmnmg Additions DeletionsF
ofYear ofYear
EquiprrentAccuimdated
Depreciation
Capital Assets Net
55842 55842
39060 8851 47911
16782 8851 7931
NOTE 7 ACCOUNTS PAYABLE
Amounts listed as Accounts Payable reflect expenses incurred during the fiscal yearbut not paid as ofDecember 31St
NOTE 8 SPECIAL EVENTS
During the course of the year the MBA operates and coordinates several specialevents designed to develop and enhance the quality of life in the Borough These events
provided revenue and incurred expenses as follows
Year Ended Dec 31
2011 2010
Gross Receipts from Special Events
Expenses Related to Special Events
Gross Margin from Special Events
NOTE 9 ECONOMIC DEPENDENCY
133712 103739
94797 78313
38915 54f
The Authority received approximately 61 and 71 of its revenues from the BoroughofMedia for both years ended 31S December 2011 and 2010 respectively
Further in addition to its direct appropriation of funds the Borough ofMedia providesconsiderable support such as use of Borough facilities insurance coverage and auditservices to the Authority at no cost The value ofdonated facilities and services has not beenvalued and presented in these fmancial statements
page 8
MEDIA BUSINESS AUTHORITY
NOTES to FINANCIAL STATEMENTS
319 December 2011
NOTE 10 LITIGATION
As of the date of these statements the Authority has no pending or threatened claims
or matters of litigation
NOTE 11 STATEMENT ofCASH FLOWS
The Authority has presented its Statement ofCash Flows on the indirect method
page 9