2011 Annual Financial Statement - Media Borough

k

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


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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


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


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


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


December 31 2011


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



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


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


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


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


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


December 31 2011


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



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


December 31 2011


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



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


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


December 31 2011


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



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


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


December 31 2011


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



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



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


December 31 2011


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


December 31 2011


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


December 31 2011


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


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

MEDIA BUSINESS AUTHORITY

FINANCIAL STATEMENTS31St DECEMBER 2011

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


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


page 3

Media Business AuthorityStatement ofCash Flow


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


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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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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

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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

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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

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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

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2011 Annual Financial Statement - Media Borough

Documents

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