city of omaha, ne · decades and growth of 4.9% between 2000 and 2010. the city of omaha is...

CITY OF OMAHA, NE

MAYOR JEAN STOTHERT

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

FOR

YEAR ENDED

DECEMBER 31, 2014

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City of Omaha, Nebraska

Comprehensive Annual Financial Report

December 31, 2014

Mayor

Jean Stothert

City Council

Pete Festersen District #1

Ben Gray District #2

Chris Jerram District #3

Garry Gernandt District #4

Rich Pahls District #5

Franklin Thompson District #6

Aimee Melton District #7

City Officials

Buster Brown City Clerk

Stephen Curtiss Finance Director

Bernard Kanger Fire Chief

Mikki Frost Human Resources Director

Mikki Frost Human Rights and Relation Director

Paul Kratz City Attorney

Guadalupe Mier Interim Library Director

Brook Bench Parks, Recreation & Public Property Director

James Thele Planning Director

Todd Schmaderer Police Chief

Robert Stubbe Public Works Director

Dean Miller Interim Convention and Tourism Director

City of Omaha, Nebraska Table of Contents

Page(s)

Introductory Section (Unaudited)

Organizational Chart 1 Letter of Transmittal 2 – 5 Certificate of Achievement for Excellence in Financial Reporting 6

Financial Section

Independent Auditors’ Report 7 – 9 Management’s Discussion and Analysis (Unaudited) 10 – 22

Basic Financial Statements: Government-wide Financial Statements:

Statement of Net Position 23 Statement of Activities 24

Fund Financial Statements: Governmental Funds:

Balance Sheet 25 Statement of Revenues, Expenditures, and Changes in Fund Balances 26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund

Balances for Governmental Funds to the Statement of Activities for Governmental Activities 27

Proprietary Funds: Statement of Net Position 28 Statement of Revenues, Expenses, and Changes in Fund Net Position 29 Statement of Cash Flows 30

Fiduciary Funds: Statement of Fiduciary Net Position 32 Statement of Changes in Fiduciary Net Position 33

Discretely Presented Component Units: Combining Statement of Net Position 34 Combining Statement of Activities 35

Notes to Basic Financial Statements 36 – 101

Required Supplementary Information (Unaudited): Budgetary Comparison Schedule – General Fund 102 Notes to Budgetary Comparison Schedule – General Fund 103 – 104 Schedule of Changes in the Civilian Plan’s Net Pension Liability 105 – 111 Civilian Plan – Schedule of City Contributions Civilian Plan – Required Supplementary Information Schedules Schedule of Changes in the Uniformed Plan’s Net Pension Liability Uniformed Plan – Schedule of City Contributions Uniformed Plan – Required Supplementary Information Schedules Postretirement Obligation Schedule of Funding Progress


Page(s)

Combining and Individual Fund Financial Statements and Schedules - Supplemental Information:

Combining Balance Sheet – Nonmajor Governmental Funds 112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor

Governmental Funds 113 Nonmajor Governmental Funds – Special Revenue Funds:

Combining Balance Sheet – Nonmajor Special Revenue Funds 117 – 120 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –

Nonmajor Special Revenue Funds 121 – 124 Budgetary Comparison Schedule – Judgment Fund (Unaudited) 125 Budgetary Comparison Schedule – Library Fine and Fees Fund (Unaudited) 126 Budgetary Comparison Schedule – Douglas County Library Supplement Fund (Unaudited) 127 Budgetary Comparison Schedule – Keno/Lottery Proceeds Fund (Unaudited) 128 Budgetary Comparison Schedule – SID Administrative Fees Revenue Fund (Unaudited) 129 Budgetary Comparison Schedule – Storm Water Fee Revenue Fund (Unaudited) 130 Budgetary Comparison Schedule – City Street Maintenance Fund (Unaudited) 131 Budgetary Comparison Schedule – Street and Highway Allocation Fund (Unaudited) 132 Budgetary Comparison Schedule – Interceptor Sewer Construction Fund (Unaudited) 133 Budgetary Comparison Schedule – Community Park Development Fund (Unaudited) 134 Budgetary Comparison Schedule – State Turn Back Revenue Fund (Unaudited) 135 Budgetary Comparison Schedule – Keno/Lottery Reserve Fund (Unaudited) 136 Budgetary Comparison Schedule – Greater Omaha Convention and Visitors

Bureau Fund (Unaudited) 137 Budgetary Comparison Schedule – Household Chemical Disposal Fund (Unaudited) 138

Nonmajor Governmental Funds – Debt Service Funds: Balance Sheet – Nonmajor Debt Service Fund 140 Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Debt

Service Fund 141 Budgetary Comparison Schedule – Debt Service Fund (Unaudited) 142 Budgetary Comparison Schedule – Riverfront Redevelopment Special Tax Fund (Unaudited) 143

Nonmajor Governmental Funds – Capital Project Funds: Combining Balance Sheet – Nonmajor Capital Project Funds 146 – 148 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –

Nonmajor Capital Project Funds 149 – 151 Budgetary Comparison Schedule – Advanced Acquisition Fund (Unaudited) 152 Budgetary Comparison Schedule – 2010 Environmental Bond Fund (Unaudited) 153 Budgetary Comparison Schedule – 2010 Transportation Bond Fund (Unaudited) 154 Budgetary Comparison Schedule – 2010 Public Facilities Bond Fund (Unaudited) 155 Budgetary Comparison Schedule – 2010 Public Safety Bond Fund (Unaudited) 156 Budgetary Comparison Schedule – 2010 Parks and Recreation Bond Fund (Unaudited) 157 Budgetary Comparison Schedule – Downtown Stadium and Companion

Projects Fund (Unaudited) 158 Budgetary Comparison Schedule – Pedestrian Trail Bridge-Joint-Use Omaha/Council Bluffs

Fund (Unaudited) 159 Budgetary Comparison Schedule – Capital Special Assessment Fund (Unaudited) 160 Budgetary Comparison Schedule – Service Special Assessment Fund (Unaudited) 161


Page(s)

Nonmajor Governmental Funds – Permanent Funds: Combining Balance Sheet – Nonmajor Permanent Funds 163 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances –

Nonmajor Permanent Funds 164 Budgetary Comparison Schedule – Western Heritage Permanent Fund (Unaudited) 165

Nonmajor Enterprise Funds: Combining Statement of Net Position – Nonmajor Enterprise Funds 167 Combining Statement of Revenues, Expenses, and Changes in Net Position – Nonmajor

Enterprise Funds 169 Combining Statement of Cash Flows – Nonmajor Enterprise Funds 171

Pension Trust Funds: Combining Statement of Fiduciary Net Position – Pension Trust Funds 174 Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds 175

Agency Funds: Combining Statement of Fiduciary Assets and Liabilities – Agency Funds 178 – 180 Combining Statement of Changes in Fiduciary Assets and Liabilities – Agency Funds 181 – 183

Statistical Section (Unaudited)

Net Position by Component 185 Changes in Net Position 186 – 188 Fund Balances of Governmental Funds 189 Changes in Fund Balances of Governmental Funds 190 Tax Revenues by Source 191 Assessed Value and Estimated Actual Value of Taxable Property 192 Property Tax Rates – Direct and Overlapping Governments 193 Principal Property Taxpayers 194 Property Tax Levies and Collections 195 Total City Taxable Sales 196 Sales Tax Rates – Direct and Overlapping Governments 197 Ratios of Outstanding Debt by Type 198 Ratios of General Obligation Debt Outstanding 199 Direct and Overlapping Governmental Activities Debt 200 Legal Debt Margin Information 201 Pledged Revenue Coverage 202 – 204 Demographic and Economic Statistics 205 Principal Employers 206 Full-Time Equivalent City Government Employees by Function/Program 207 Operating Indicators by Function/Program 208 Capital Asset Statistics by Function/Program 209

Single Audit Section

Schedule of Expenditures of Federal Awards 210 – 212 Notes to Schedule of Expenditures of Federal Awards 213 – 214 Independent Auditor’s Report on Internal Control Over Financial Reporting and on

Compliance and Other Matters Based on an Audit of the Financial Statements 215 – 216 Report on Compliance for Each Major Federal Program and on Internal Control Over

Compliance – Independent Auditor’s Report 217 – 218 Schedule of Findings and Questioned Costs 219 – 222 Summary Schedule of Prior Audit Findings 223

INTRODUCTORY SECTION

City of Omaha, Nebraska Organizational Chart

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Citizens

Executive and Legislative

Mayor City Council

City ClerkAdministrative

StaffAdministrative

Staff

LawHuman

ResourcesHuman Rights and Relations

Finance Planning Parks, Recreation and Public Property

Fire Police Public WorksConvention and

TourismPublic Library

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July 28, 2015

To the Honorable Mayor, Members of the City Council, and Citizens of the City of Omaha:

State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the City of Omaha (the City) for the fiscal year ended December 31, 2014.

This report consists of management’s representations concerning the finances of the City of Omaha. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Omaha has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Omaha’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Omaha’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Omaha’s financial statements have been audited by BKD, LLP, a firm of licensed and certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Omaha for the fiscal year ended December 31, 2014, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering unmodified opinions that the City of Omaha’s financial statements for the fiscal year ended December 31, 2014, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the City of Omaha was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are included in the Single Audit section found at the end of the CAFR.

Finance Department

Omaha/Douglas Civic Center1819 Farnam Street, Suite 1004

Omaha, Nebraska 68183-1004(402) 444-5416

Telefax (402) 546-1150

Stephen B. CurtissFinance Director

Allen R. Herink

Comptroller

City of Omaha Jean Stothert, Mayor

The Honorable Mayor, Members of the City Council, and Citizens of the City of Omaha July 28, 2015

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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Omaha’s MD&A can be found immediately following the report of the independent auditors.

Profile of the Government

The City of Omaha, incorporated in 1857, is located in the eastern part of the state of Nebraska, and is the 41st largest city in the nation. The City of Omaha currently occupies a land area of 131 square miles and serves a population of 434,353. The City of Omaha has seen steady upward growth over the past five decades and growth of 4.9% between 2000 and 2010. The City of Omaha is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing council.

The City of Omaha is operated under the Mayor-Council form of government. The Mayor and seven-member City Council are both elected to four-year terms. The executive and administrative powers of the City of Omaha are vested in the Mayor, who is popularly elected on a non-partisan basis. Agreements with Douglas County provide for the sharing of library, information technology, parks, purchasing, printing, mail, and 911 services between city and county residents.

The City of Omaha provides a full range of services, including police and fire protection, the construction and maintenance of highways, streets, and other infrastructure, recreational activities and cultural events. The City of Omaha is financially accountable for the Metropolitan Entertainment and Convention Authority (MECA) and Heartland Workforce Solutions, Inc. (HWS). MECA is a separate nonprofit corporation that is responsible for the operation of the Omaha Convention Center/Arena, the Civic Auditorium, and TD Ameritrade Stadium. HWS is a separate 501(c)(3) nonprofit organization that administers the Workforce Investment Act activities for adults, youth, and dislocated workers in Douglas, Sarpy and Washington Counties in Nebraska. Additional information regarding both MECA and HWS can be found in Note 1 (a) in the notes to basic financial statements.

The annual budget serves as the foundation for the City of Omaha’s financial planning and control. All agencies of the City of Omaha are required to submit requests for appropriation to the Finance Director during April of each year. The Finance Director uses these requests as the starting point for developing a proposed budget. The Finance Director then provides the Mayor with a proposed budget. The Mayor reviews all estimates, expenditures, and capital improvements, and makes revisions where necessary. Not later than 30 days before the tax levy certification date, the Mayor then submits the proposed budget to the City Council for consideration, at which time the budget becomes a public record and open to inspection. The City Council is required to hold public hearings on the proposed budget and to adopt a final budget no later than the day prior to the tax levy certification date. The appropriated budget is prepared by fund and department (e.g., police). The Mayor may at any time transfer an unencumbered appropriation balance or portion thereof between appropriations of the same division. Transfers of appropriations between divisions within the same department, however, require the special approval of the City Council. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 102 as part of the required supplemental information. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which starts on page 112. Also included in the governmental fund subsection are project-length


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budget-to-actual comparisons for each governmental fund for which a project-length budget has been adopted (e.g., the CDBG revitalization project special revenue fund and the capital projects funds).

Factors Affecting Financial Condition

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Omaha operates.

Local Economy. The City of Omaha currently enjoys a favorable economic environment and local indicators point to continued stability. Unemployment in the City of Omaha in 2014 was 3.5%, well below the national average. The City of Omaha has a high concentration of its employment in trade, transportation and utilities, professional and business services, education, and healthcare services. The City has a relatively small amount of total employment in manufacturing and government. Over the past decade, Omaha has experienced solid growth, despite two recessions at the national level. The City is the corporate headquarters for such Fortune 500 companies as: Berkshire Hathaway, Union Pacific, ConAgra Foods, Peter Kiewit, and Mutual of Omaha.

The Greater Omaha Metropolitan Statistical Area (MSA) (which includes the eight-county region of Douglas, Sarpy, Cass, Saunders and Washington counties in Nebraska and Harrison, Mills and Pottawattamie counties in Iowa) has a population of approximately 904,421. The MSA grew by 14.9 percent between 2000 and 2011 and is projected to grow another 7.3 percent by 2016. The government’s central business district is expected to maintain its current occupancy rate with a variety of stores, specialty shops, commercial businesses, and a rising number of residential living spaces.

Long-Term Financial Planning. The City has a steady capital improvement plan that provides for reinvesting in City streets, public facilities, public safety, libraries, parks, and infrastructure over the next five years.

Combined Sewer Overflow (CSO)

Like many communities across the nation, the City of Omaha is addressing its CSO problem by implementing a CSO Long Term Control Plan. Combined sewer overflow occurs when untreated wastewater and storm water commingle in a single pipe and spill into Omaha’s rivers and creeks. The total cost of the program, which the City anticipates will extend over approximately 15 years, is estimated at $1.66 billion in 2009 dollars. Annual borrowing needs for the foreseeable future will be in the range of $75 million to $150 million. The City has increased and is increasing its rates and charges for the system on an annual basis for each of the fiscal years 2011 through 2018, primarily for the purpose of paying for the cost of the program.

Awards and Acknowledgements

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Omaha for its comprehensive annual financial report for the fiscal year ended December 31, 2013. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.


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A Certificate of Achievement is valid for a period of only one year. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

In addition, the City also received the GFOA’s Distinguished Budget Presentation Award for its annual budget document dated December 31, 2014. In order to qualify for the Distinguished Budget Presentation Award, the government’s budget document must be judged as proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device.

The preparation of this request would not have been possible without the efficient and dedicated services of the entire staff of the Finance and Administration Department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Omaha’s finances.

Respectfully submitted,

Stephen B. Curtiss Finance Director

Government Finance Officers Association

Certificate of Achievement for

Excellence in Financial Reporting

Presented to

City of Omaha

Nebraska

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

December 31, 2013

Executive Director/CEO

FINANCIAL SECTION

Independent Auditor’s Report The Honorable Mayor and Members of the City Council City of Omaha, Nebraska

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Omaha, Nebraska (the City) as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of Metropolitan Entertainment and Convention Authority (MECA) and Heartland Workforce Solutions, whose financial statements are included as discretely presented component units and represent 100% of the discretely presented component units as of and for the year ended December 31, 2014. Those financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinions, insofar as they relate to the amounts included for MECA and Heartland Workforce Solutions, are based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions

In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Omaha, Nebraska, as of December 31, 2014, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matters

As discussed in Notes 1(r) and 10 to the financial statements, in 2014 the City implemented the provisions of Governmental Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans – an amendment of GASB Statement No. 25. Our opinions are not modified with respect to this matter.

The 2013 financial statements, before they were restated for the matters discussed in Note 1(s) to the financial statements, were audited by other auditors, and their report thereon, dated July 30, 2014, expressed an unmodified opinion. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, schedules of changes in the pension plans’ net pension liability, funding progress and employer contributions, postretirement obligation schedule of funding progress and budgetary comparison information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying supplementary information, consisting of combining fund financials statements and the schedule of expenditures of federal awards required by OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole.

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Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying information in the introductory and statistical sections listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated July 28, 2015, on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.

Omaha, Nebraska July 28, 2015

City of Omaha, Nebraska Management’s Discussion and Analysis

Year Ended December 31, 2014

(Unaudited)

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This discussion and analysis of the City of Omaha’s (the City) financial performance provides an overall review of the City’s financial activities for the fiscal year ended December 31, 2014. The intent of this discussion and analysis is to look at the City’s financial performance as a whole. Readers should also review the basic financial statements to enhance their understanding of the City’s financial performance.

Financial Highlights for Fiscal Year 2014

• The assets of the City, on a government-wide basis, excluding component units, exceeded its liabilities at the close of fiscal year 2014 by $495.8 million (net position). Of this amount, $261.7 million is an unrestricted deficit, $604.7 million is the City’s net investment in capital assets, and $152.8 million is restricted for specific purposes.

• The City’s total net position increased by $31.7 million from the prior year. Of this amount, $10.0 million was a decrease in governmental activities and $41.7 million was an increase in business-type activities. The decrease in net position related to governmental activities is primarily attributable to current year increases for net pension obligations and postretirement benefit obligations, partially offset by increases in tax revenues and capital contributions. The increase in business-type activities is primarily attributable to an increase in the Sewer Revenue Fund of $42.9 million and an increase in the Parking Facilities Fund of $2.4 million. This increase was offset by a decrease in net position of the Convention Center Hotel Fund in the amount of $2.9 million.

• As of December 31, 2014, the City’s governmental funds reported combined ending fund balances of $145.7 million, an increase of $17.3 million in comparison with the prior year, as restated. This increase is largely due to an increase in the fund balance of the General Fund of $5.7 million and increases in various Nonmajor Governmental Fund balances of $11.8 million. These changes were due primarily to a budget surplus from actual sales and use tax revenues being approximately $7.4 million higher than expected in the General Fund and increases in Other Financing Sources (transfers, debt issuance and sale of assets) within Nonmajor Governmental Funds. Of the combined governmental funds ending fund balances, approximately 40.7%, or $59.3 million, is available for spending at the City’s discretion (unassigned and assigned fund balance).

• The general fund, on a current fiscal resources budget basis, reported a surplus of revenues over expenditures, lapsed encumbrances, and transfers of $9.0 million. Revenues were above budget in the amount of $6.5 million and expenditures under budget, lapsed encumbrances, and year-end transfers in the amount of $2.5 million account for a 2014 year-end carryover reserve of $9.0 million.

• At the end of the current fiscal year, the unassigned/assigned fund balance for the general fund was $65.2 million, or 19.6% of general fund expenditures.

• As of December 31, 2014, the City’s general obligation bond rating from Standard & Poor’s was AA+ and Moody’s Investor Service rated the City’s bonds Aa2.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains supplementary and other information in addition to the basic financial statements themselves.



(Unaudited)

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The basic financial statements include two kinds of statements that present different views of the City:

• The first two statements are government-wide statements that provide both long-term and short-term information about the City’s overall financial status.

• The remaining statements are fund financial statements that focus on individual parts of the City’s government, reporting the City’s operations in more detail than the government-wide statements.

– Governmental fund statements tell how general government services such as public safety were financed in the short term, as well as what amounts remain for future spending.

– Proprietary fund statements offer short-term and long-term financial information about the activities the government operates similar to a business, such as the City’s sewage treatment plants or Convention Center Hotel.

– Fiduciary fund statements provide information about financial relationships in which the City acts solely as a trustee or agent for the benefit of others, to whom the pertaining resources belong. One example is parking fine receipts which are remitted to the school district.

The financial statements also include notes that expand upon the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, using accounting methods similar to those used by private sector companies. (The statement of net position and the statement of activities, which are the government-wide statements, include the City’s assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private sector companies.) All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

These two government-wide statements report the City’s net position and how it has changed. Net position – the difference between the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources – is one way of measuring the City’s financial health or financial position. Over time, increases or decreases in the City’s net position is an indicator of whether its financial health is improving or deteriorating. Other nonfinancial factors, such as changes in the City’s property tax base and the condition of the City’s roads and other infrastructure, may need to be considered as well to assess the overall health of the City.

In the statement of net position and the statement of activities, the City is divided into three categories:

Governmental Activities – Most of the City’s basic services are included here such as police, fire, public works, parks and recreation, and general administration departments. Taxes and intergovernmental revenues principally support these functions.



(Unaudited)

12

Business-Type Activities – The City charges fees to customers in order to cover the costs of certain services it provides. The City’s sewer system, air quality control enforcement, marinas, golf courses, tennis operations, parking facilities, printing services, river plaza facility, citywide sports, and hotel are included here.

Component Units – The City includes two separate legal entities in its report, the Metropolitan Entertainment and Convention Authority (MECA), and Heartland Workforce Solutions, Inc. Although legally separate, these “component units” are important because the City is financially accountable for them and the City provides debt service funding for the arena, convention center and stadium (see note 1).

The government-wide financial statements can be found on pages 23 and 24 of this report.

Fund Financial Statements

The fund financial statements provide more detailed information about the City’s most significant funds – not the City as a whole. Funds are accounting mechanisms that the City uses to keep track of specific sources of funding and spending for particular purposes. The City Charter, state law, and bond covenants require certain funds. The City Council or Administration establishes other funds to control and manage money for particular purposes or to show that the City is properly using certain taxes and grants.

The City has three kinds of funds:

Governmental Funds – Most of the City’s basic services are included in governmental funds, which focus on (1) the flow in and out of cash and other financial assets that can readily be converted to cash and (2) the balances remaining at year-end that are available for spending. These funds are reported using the modified accrual accounting basis and a current financial resources measurement focus. Consequently, the governmental fund statements provide a detailed short-term view that helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The relationship between governmental activities (reported in the statement of net position and the statement of activities) and governmental funds is described in a reconciliation that follows the governmental fund financial statements.

The City maintains 77 governmental funds, some of which are combined into a single fund for financial statement purposes. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund and debt service fund, which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation as nonmajor governmental funds.

The City adopts an annual budget for the general fund, as required by the City Charter. A budgetary comparison statement is presented for the general fund using the City’s budgetary basis of accounting. This statement reflects the following: (a) the original budget, (b) the final budget as amended, (c) actual results, and (d) the variance between the final budget and actual results. Because the budgetary basis of accounting differs from the modified accrual basis used in the funds statements, a reconciliation is provided in the notes to the general fund budgetary comparison schedule.

The governmental fund financial statements can be found on pages 25 through 27 of this report.



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Proprietary Funds – Services for which the City charges customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both short-term and long-term financial information. The City maintains 12 enterprise funds, which are a type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer system, air quality control enforcement, marina and dredge operations, golf course operations, tennis operation, river plaza facility, parking facilities, compost, printing services, citywide sports, and hotel. The City has classified the Sewer Revenue, Convention Center Hotel, and Parking Facilities funds as major funds and they are presented separately in the proprietary fund statement of net position and the proprietary statement of revenues, expenses, and changes in net position. Data from the other proprietary funds are combined into a single aggregated presentation as nonmajor enterprise funds.

The proprietary fund financial statements can be found on pages 28 through 31 of this report.

Fiduciary Funds – The City is the trustee, or fiduciary, for certain donated funds. The City maintains 22 fiduciary funds. It is also responsible for other assets that, because of a trust arrangement, can be used only for the trust beneficiaries. The City is responsible for ensuring that the assets reported in these funds are used for their intended purpose. These activities are reported in a separate statement of fiduciary net position. The City excludes this activity from its government-wide financial statements because the City cannot use these assets to finance its operations. The accounting used for fiduciary funds is much like that used for proprietary funds.

The fiduciary fund financial statements can be found on pages 32 and 33 of this report.

Notes to the Basic Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 36 through 101 of this report.

Required Supplementary Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s 2014 budget information for the general fund and the City’s progress in funding its obligation in both pension and other postemployment benefits. Required supplementary information can be found on pages 102 through 111 of this report.

City Government-wide Financial Analysis

As noted earlier, net position (assets and deferred outflows of resources over liabilities and deferred inflows of resources) may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded its liabilities by $495.8 million at the close of fiscal year 2014. The City’s net investment in capital assets reflects its investment in capital assets (e.g., land, building, equipment, and infrastructure) less accumulated depreciation, any related deferred outflows of resources, and the debt relating to unspent proceeds any related outstanding debt used to acquire those assets. The City uses these assets to provide services to its citizens, and consequently, these assets are not available for future spending. The resources needed to repay the debt related to these capital assets must be provided from other sources.



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The following table reflects the condensed summary of net position (in millions):

CITY OF OMAHASummary of Net Position

Governmental Business-type Total PrimaryActivities Activities Government

2014 2013 2014 2013 2014 2013Current and other assets $ 336.3 316.5 209.7 124.4 546.0 440.9 Capital assets 1,145.8 1,106.0 817.9 729.6 1,963.7 1,835.6

Total assets 1,482.1 1,422.5 1,027.6 854.0 2,509.7 2,276.5

Deferred outflows of resources: Loss on refunding 32.0 31.4 3.7 3.9 35.7 35.3

Total assets and deferred outflows ofresources $ 1,514.1 1,453.9 1,031.3 857.9 2,545.4 2,311.8

Current and other liabilities $ 127.1 120.6 45.3 37.6 172.4 158.2 Long-term liabilities 1,226.9 1,187.8 650.3 526.3 1,877.2 1,714.1

Total liabilities 1,354.0 1,308.4 695.6 563.9 2,049.6 1,872.3

Net position:Net investment in capital

assets 418.6 363.1 186.1 214.9 604.7 578.0 Restricted position 130.8 15.8 22.0 42.9 152.8 58.7 Unrestricted position (deficit) (389.3) (233.4) 127.6 36.2 (261.7) (197.2)

Total net position 160.1 145.5 335.7 294.0 495.8 439.5

Total liabilities and net position* $ 1,514.1 1,453.9 1,031.3 857.9 2,545.4 2,311.8

* Beginning net position for 2014 has been restated (See note 1(s) to the financial statements). The 2013 figures in the table above have not been updated to reflect these changes.

Governmental Activities

Net position of the City’s governmental activities increased $14.6 million (10.3%) to $160.1 million. However, a significant portion of that net position is either the City’s net investment in capital assets (building, roads, bridges, etc.) or restricted as to the purpose it can be used for. Consequently, unrestricted net position showed a $389.3 million deficit at the end of this year. This deficit does not mean that the City does not have the resources available to pay its current liabilities. Rather, it is the result of having long-term commitments that are greater than current available resources. Specifically, the City did not include in past annual budgets, the full amounts needed to finance the future liabilities arising from workers’ compensation and healthcare claims ($44.4 million), Civilian, Police, and Fire net pension obligations ($230.3 million), and post-employment benefits ($186.8 million). The City will include these amounts in future years’ budgets as they become due.

Business-Type Activities

The net position of the City’s business-type activities increased approximately $41.7 million to $335.7 million. The City generally can only use this net position to finance the continuing operation of its



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enterprise operations. A key element of this increase is the $42.9 million increase in net position of the Sewer Fund.

The following table shows the revenues and expenses of the governmental and business-type activities:

Change in Net Position(In millions)

Governmental Business-type Total PrimaryActivities Activities Government

2014 2013 2014 2013 2014 2013Revenues:

Program revenues:Charges for services $ 88.6 90.1 134.2 113.6 222.8 203.7 Operating grants and contributions 55.8 64.5 0.7 - 56.5 64.5 Capital grants and contributions 3.3 1.4 5.8 1.0 9.1 2.4

General revenues:Sales and use tax 142.6 136.7 - - 142.6 136.7 Property tax 144.6 142.3 - - 144.6 142.3 Other taxes 84.0 81.4 - - 84.0 81.4 Unrestricted investment earnings 1.6 0.4 0.4 - 2.0 0.4 Other - - 0.8 - 0.8 -

Total revenues 520.5 516.8 141.9 114.6 662.4 631.4 Expenses:

General government 84.0 91.4 - - 84.0 91.4 Public safety 235.4 230.3 - - 235.4 230.3 Transportation services 70.6 71.6 - - 70.6 71.6 Other public services 23.1 28.7 - - 23.1 28.7 Community development 33.1 28.9 - - 33.1 28.9 Culture and parks 52.0 49.3 - - 52.0 49.3 Interest on long-term debt 30.3 31.2 - - 30.3 31.2 Convention Center Hotel - - 15.5 15.7 15.5 15.7 Parking - - 7.0 - 7.0 - Sewage treatment - - 71.9 64.7 71.9 64.7 Other - - 7.8 16.1 7.8 16.1

Total expenses 528.5 531.4 102.2 96.5 630.7 627.9 Increase (decrease) in net

position before transfers (8.0) (14.6) 39.7 18.1 31.7 3.5 Transfers (2.0) (0.5) 2.0 0.5 - -

Increase (decrease) in net position (10.0) (15.1) 41.7 18.6 31.7 3.5

Net position at beginning of year * 170.1 160.6 294.0 275.4 464.1 436.0 Net position at end of year $ 160.1 145.5 335.7 294.0 495.8 439.5

CITY OF OMAHA



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* Beginning net position for 2014 has been restated (see notes 1(s) to the financial statements). The 2013 figures in the table above have not been updated to reflect these changes.

Governmental Activities

The City’s total revenues from governmental activities were $520.5 million for the fiscal year ended December 31, 2014. The largest source of revenue ($144.6 million in 2014) for the City is property tax. Property tax revenues increased $2.3 million (1.6%) during 2014. The City property tax rate is 48.922 cents per $100 of assessed value. Property tax valuations for 2014 increased by 4.2% when compared with valuations from 2013.

The City’s expenses for governmental activities cover a wide range of services, with 44.5% or $235.4 million, for fiscal year 2014 related to public safety and 13.4%, or $70.6 million, for fiscal year 2014 for transportation services. Overall, the expenses for governmental activities decreased by 0.56% or $2.9 million in 2014. This can largely be attributed to decreased expenditures for General Government ($7.4 million) and Other Public Services ($5.6 million).

Business-Type Activities

The net position of the City’s business-type activities increased by $41.7 million. The change of net position by the major enterprise funds and the other nonmajor enterprise funds is presented as follows:

Fund Amount(In millions)

Convention center hotel $ (2.9) Parking facilities 2.3 Sewer revenue 42.9 Other nonmajor enterprise funds (0.6)

41.7

The Convention Center Hotel Fund began operations in April 2004. The City believes that future operations of the Hotel will eliminate this deficit. Annual appropriations from the City will subsidize any debt service shortfall. In October 2011, construction was completed on a 150-room expansion project bringing the hotel’s total inventory to 600 guestrooms. The expansion project also included a refresh of existing rooms and the addition of another ballroom.

The Parking Facilities Fund was established as a tool to manage the City’s eight parking structures and various surface lots throughout the City. Lease purchase debt has been issued to finance the construction of the parking structures. All operating activities of the Parking Facility Fund have been consolidated within Public Works. The completion of a comprehensive parking-fee study will likely lead to changes in rates based on location and hours of enforcement.

In May 2009, the City Council enacted an ordinance increasing sewer use fees by twenty to thirty percent annually beginning in 2012 through 2014. The action provides funding for the sewer system’s capital improvements.



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The City’s enterprise operations are reviewed on an ongoing basis. Revenues and expenses are adjusted as necessary to maintain an adequate amount of working capital. Annual appropriations may also be used to subsidize these funds. The City has decided to account for these activities through the use of enterprise accounting to better identify the cost of the services and for better management control.

Financial Analysis of the Government’s Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balances may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

For the fiscal year ended December 31, 2014, the governmental funds reported combined ending fund balances of $145.7 million, an increase of $17.3 million in comparison with the prior year, as restated. An increase in fund balance in the amount of $5.7 million for the General Fund and $11.8 million for Nonmajor Governmental Funds accounted for this overall fund balance increase. A decrease in the fund balance in the Debt Service Fund of $0.2 million offset these increases.

Approximately 49.7% or $72.4 million of the combined fund balance constitutes committed/assigned/unassigned fund balance, which generally is available for spending at the City’s discretion. The remainder of the fund balance is restricted to indicate that it is not available for new spending, because it has already been restricted for:

• debt service payments ($22.7 million)

• public safety ($3.1 million)

• community development ($2.6 million)

• culture and parks ($6.3 million)

• general government ($10.9 million)

• transportation and street systems ($21.9 million)

The general fund is the City’s chief operating fund. The general fund’s assigned/unassigned fund balance at December 31, 2014 is $65.2 million, while the total fund balance is $68.5 million. As a measure of the general fund’s liquidity, it may be useful to compare both the assigned/unassigned fund balance and the total fund balance to total fund expenditures. The assigned/unassigned fund balance represents 19.6% of the total fund balance to total fund expenditures, whereas the total fund balance represents 20.6% of that same amount. The fund balance of the general fund increased by $5.7 million in fiscal year 2014. For budgeting purposes only, the 2014 budget surplus of $9.0 million is available for governmental use.



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Another major governmental fund is the Debt Service Fund. The Debt Service Fund has a total fund balance of $19.2 million, all of which will be used either for payment of debt service on the City’s general obligation debt or for payment of debt issuance costs. The Debt Service Fund decreased by $0.2 million for fiscal year 2014.

General Fund Budgetary HighlightsDecember 31, 2014

(In millions)Original FinalBudget Budget Actual

Revenues:Taxes $ 279.6 279.6 284.4 Charges for services 24.8 24.8 24.4 Other 26.9 26.9 29.0

Total 331.3 331.3 337.8 Expenditures, lapsed encumbrances,

and transfers 340.7 340.7 338.1 Changes in fund balance $ (9.4) (9.4) (0.3)

There are three types of budget transfers, each requiring a successive level of authority. First, the Mayor may, at any time, transfer an unencumbered appropriation balance or portion thereof between appropriations of the same division. Second, transfers between divisions in the same department may be authorized by resolution of the City Council. Third, transfers between departments/agencies may be authorized by ordinance of the City Council. At the end of the year, the City Council passed a budget amendment to transfer $4.8 million from the General Fund, $1.0 million to the Cash Reserve Fund, $3.3 million to the Contingent Liability Fund, and $0.5 million to the City Capital Improvement Fund.

Significant variances between the general fund’s actual revenues and expenditures and the final amended budget are summarized as follows:

• Sales tax revenue was $7.4 million above budget

• In lieu taxes and licenses and permits were $1.6 million above budget.

• Property tax revenue was $0.6 million below budget.

• Business taxes were $2.6 million below budget.

• Restaurant tax revenue was $0.7 million below budget.

• Other revenues were $1.4 million above budget.

• The Mayor’s office, city clerk, city council, law, human resources, human rights and relations, finance, public works, and the library were collectively $0.5 million under budget.

• The planning department was $0.7 million under budget.



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• The fire department was $0.9 million over budget.

• The police department was $3.2 million under budget.

• The parks department was $0.5 million over budget.

• The employee benefits and other agencies, together were under budget $4.2 million.

Proprietary Funds

The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Net position of the Convention Center Hotel Fund, Parking Facilities Fund, Sewer Revenue Fund, and other enterprise funds amounted to $(45.9) million, $(4.3) million, $385.4 million, and $0.4 million, respectively, at December 31, 2014. Additional discussion concerning the finances of these funds has already been addressed in the discussion of the City’s business-type activities.

Capital Asset and Debt Administration

Capital Assets

The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2014, is approximately $2.0 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, machinery and equipment, streets, bridges, storm sewers, sanitary sewers, event facilities, and wastewater treatment plants. The total change in the City’s investment in capital assets for the current year was a net increase of 7.0% (an increase of 3.6% for governmental activities and an increase of 12.1% for business-type activities).

Governmental Business-typeActivities Activities Total

2014 2013 2014 2013 2014 2013Land $ 139.5 140.0 5.2 5.2 144.7 145.2 Cultural assets 5.9 5.8 0.7 0.7 6.6 6.5 Construction in progress 75.3 52.8 155.9 120.5 231.2 173.3 Buildings 326.3 323.6 110.1 157.5 436.4 481.1 Machinery and equipment 25.0 26.8 8.6 11.1 33.6 37.9 Infrastructure 573.8 557.0 537.4 434.5 1,111.2 991.5

Total $ 1,145.8 1,106.0 817.9 729.5 1,963.7 1,835.5

Major capital asset events during 2014 included the following:

• Construction continued on the City’s sewer system including the Combined Sewer Overflow Program with capital outlays of $108.5 million.

• Adams Park improvements totaled $3.1 million.

• 16th Street mall improvements totaled $1.3 million.

• The conversion of Farnam Street from one-way to two-way totaled $1.1 million.



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• The Papio Wastewater Treatment Plant’s boiler upgrade totaled $1.1 million.

• West Papio Creek outlet repair totaled $.7 million.

• Replacement of the Stockyards Bridge at 26th & L totaled $.6 million.

• Construction in progress citywide totaled $200.4 million.

• Annual citywide depreciation expense for governmental activities totaled $41.5 million.

Additional information on the City’s capital assets can be found in note 11 to the financial statements on pages 89 through 92 of this report.

Long-Term Debt

At December 31, 2014, the City had total bonded debt outstanding of $1.3 billion (including notes payable). Of this amount, $501.8 million is general obligation debt backed by the full faith and credit of the City; $557.7 million of revenue bonds secured solely by specified revenue sources; $70.7 million of special obligation bonds backed by a variety of revenue sources, including sales tax and property tax; $34.7 million of special tax revenue bonds backed by a redevelopment property tax levy; $142.0 million of lease purchase bonds backed by annual General Fund appropriations; and $15.2 million of notes payable backed by a variety of revenue sources.

Governmental Business-typeActivities Activities Total

2014 2013 2014 2013 2014 2013General obligation bonds $ 501.8 490.0 - - 501.8 490.0 Revenue bonds 1.3 1.5 556.4 437.7 557.7 439.2 Special obligation bonds 55.3 57.6 15.4 16.3 70.7 73.9 Special tax revenue bonds 34.7 37.5 - - 34.7 37.5 Lease purchase bonds 110.9 126.1 31.1 34.1 142.0 160.2 Notes payable 2.5 2.8 12.7 12.9 15.2 15.7

Total $ 706.5 715.5 615.6 501.0 1,322.1 1,216.5

During 2014, the City’s total debt increased by $105.6 million (8.7%). In 2014, the City issued $127.8 million for the Sewer Fund’s capital improvement projects, issued $70.2 million for refundings of governmental activities debt, and assumed $39.5 million through annexations. In 2014, the City retired $123.4 million of outstanding debt. These actions account for the increase in outstanding debt.

At December 31, 2014, the City maintained an AA+ rating from Standard & Poor’s Corporation and an Aa2 rating from Moody’s Investors Service on general obligation bonds.

Under the City’s Home Rule Charter, the total amount of general obligation indebtedness outstanding at any time shall not exceed 3.5% of the actual value of taxable real and personal property in the City. The legal debt margin as of December 31, 2014, is $526.6 million.

Additional information on the City’s long-term debt can be found in notes 7 and 8 to the financial statements on pages 59 through 69 of this report.



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Economic Factors and Next Year’s Budget and Rates

• Revenue o The City Council approved a large annexation package which increased 2015 valuations by

$930,048,780.

o Sales tax continues to increase at a steady pace. The City continues to remain cautiously optimistic regarding sales tax growth. Unfortunately, LB775 and LB312 refunds remain somewhat unpredictable and are projected to remain at their recent higher levels. Refunds are budgeted at $12.5 million in 2015. Even with the refunds, net sales tax receipts are projected at $143.7 million which is a 0.8% increase over what was received in 2014 and a 6.1% increase over the 2014 budget. Sales tax continues to be the largest revenue source for the general fund at 41.7% of revenues.

o Property tax valuations are relatively flat (when excluding annexations) compared to the 2014 values. Property tax is a large revenue source and accounts for approximately 22.9% of General Fund revenues. The growth in sales and restaurant tax along with limited growth in city expenditures enabled the city to approve a 2% property tax reduction.

o The restaurant tax continues to perform well, helping to offset the stagnant growth of property tax. Restaurant tax is projected at $29 million in 2015, an estimated increase of 4.7% over 2014.

o Net General Fund revenue increased by 2.8% in the 2015 budget.

• Expenditures

o Labor costs: A majority of the City of Omaha’s General Fund is used for labor costs, most of which are under contract. At the time the 2015 budget was adopted negotiations were ongoing. The City of Omaha budgeted the following wage increases in the wage adjustment account (totaling $15,487,249 for all funds of which $11,127,281 is attributable to the General Fund):

Civilian Personnel: 2%

Police Sworn Personnel: 2%

Fire Sworn Personnel: 2%

Civilian Pension: 7%

Currently all bargaining groups except Police have reached multi-year agreements. These agreements have been settled at budget or under-budget for 2015.

o Combined Sewer Overflow Program (CSO):

The final plan was submitted in Oct 2009 and approved in Feb 2010 to deal with this federal mandate. The original completion date was scheduled for October 2024, but due to the floods of 2011, the completion date has been extended to October 2027.

The costs are estimated at $2 billion (current dollars) over 15-20 years.

Annual Sewer Fee rate increases through 2018 have been adopted.



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This is the largest Public Works project in the history of the State of Nebraska.

The City continually monitors the progress of the project in the hopes of project scope reductions based on current results.

During 2014, the assigned/unassigned fund balance in the general fund was $65.2 million. The City appropriated $9.0 million of this amount for spending in the 2016 fiscal year. This 2016 appropriation represents the 2014 budget balance carried forward. The 2014 budget balance carried forward in the amount of $9.0 million will be appropriated for spending in 2016. The City Charter requires that the general fund budget balance, as of the close of any particular fiscal year, be applied as general fund revenue in the budget for the fiscal year two years subsequent to that fiscal year.

Requests for Information

This financial report is designed to provide citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the funds it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Omaha, Finance Department, Suite 1004, 1819 Farnam Street, Omaha, Nebraska 68183.

BASIC FINANCIAL STATEMENTS

City of Omaha, Nebraska Statement of Net Position

December 31, 2014

23 See accompanying notes to basic financial statements

AggregatePrimary Government Discretely

Governmental Business-type PresentedAssets and Deferred Outflows of Resources Activities Activities Total Component Units

Assets:Cash and pooled investments $ 46,690,844 2,629,712 49,320,556 14,040,827 Investments 66,900,966 147,688,347 214,589,313 11,451,605 Receivables (net of allowance for uncollectibles) 164,015,509 2,442,640 166,458,149 3,779,986 Due from other governments 46,208,108 8,825,744 55,033,852 171,867 Internal balances 4,217,000 (4,217,000) - - Accrued interest 266,379 122,562 388,941 - Inventories 2,367,427 761,769 3,129,196 - Other assets 521,860 696,095 1,217,955 2,830,266 Restricted assets:

Investments - 28,830,700 28,830,700 - Funds with trustee 5,143,978 22,011,634 27,155,612 -

Capital assets:Nondepreciable 220,675,544 161,852,028 382,527,572 25,631 Depreciable 925,096,532 656,022,022 1,581,118,554 23,357,771

Total assets 1,482,104,147 1,027,666,253 2,509,770,400 55,657,953

Deferred outflows of resources:Loss on refunding of bonds 32,022,978 3,658,731 35,681,709 -

Total assets and deferred outflows of resources $ 1,514,127,125 1,031,324,984 2,545,452,109 55,657,953

Liabilities and Net PositionLiabilities:

Accounts payable and other $ 35,997,938 23,604,044 59,601,982 14,027,728 Accrued interest payable 5,944,136 5,111,069 11,055,205 - Due to other governments 1,904,448 - 1,904,448 - Unearned revenue 4,367,567 - 4,367,567 - Long-term liabilities:

Net pension obligation, due in more than one year 230,291,087 12,096,616 242,387,703 - Postretirement benefit obligation, due in more than one year 186,786,212 11,066,668 197,852,880 - Other liabilities - - - 5,549,525 Compensated absences:

Due within one year 4,969,297 139,811 5,109,108 - Due in more than one year 64,048,710 1,802,018 65,850,728 -

Grants payable:Due within one year 2,525,200 - 2,525,200 - Due in more than one year 10,853,300 - 10,853,300 -

Claims and judgments:Due within one year 2,660,000 - 2,660,000 -

Workers’ compensation and healthcare claims:Due within one year 14,218,057 930,096 15,148,153 - Due in more than one year 30,144,764 1,971,965 32,116,729 -

Bonds, notes, and leases payable:Due within one year 54,563,633 15,514,101 70,077,734 600,327 Due in more than one year 704,731,389 623,435,436 1,328,166,825 1,610,634

Total liabilities 1,354,005,738 695,671,824 2,049,677,562 21,788,214

Net position:Net investment in capital assets 418,572,319 186,069,768 604,642,087 21,172,441 Restricted for:

Debt service 78,666,412 22,011,634 100,678,046 - Other 49,367,563 - 49,367,563 - Perpetual care:

Expendable 22,052 - 22,052 - Nonexpendable 2,775,389 - 2,775,389 -

Unrestricted (389,282,348) 127,571,758 (261,710,590) 12,697,298

Total net position 160,121,387 335,653,160 495,774,547 33,869,739

Total liabilities and net position $ 1,514,127,125 1,031,324,984 2,545,452,109 55,657,953

City of Omaha, Nebraska Statement of Activities


24 See accompanying notes to basic financial statements

Program Revenues Net Revenue (Expense) and Changes in Net PositionAggregateDiscretely

Operating Capital Primary Government PresentedCharges for Grants and Grants and Governmental Business-type Component

Expenses Services Contributions Contributions Activities Activities Total UnitsFunctions/programs:

Primary government:Governmental activities:

General government $ 83,925,873 7,067,312 55,536 - (76,803,025) - (76,803,025) - Public safety 235,395,146 24,978,154 6,310,571 - (204,106,421) - (204,106,421) - Transportation services 70,582,625 16,185,140 37,673,381 3,272,418 (13,451,686) - (13,451,686) - Other public services 23,090,607 7,105,263 1,247,289 - (14,738,055) - (14,738,055) - Community development 33,123,570 20,290,498 10,474,658 - (2,358,414) - (2,358,414) - Culture and parks 51,983,977 12,919,954 - - (39,064,023) - (39,064,023) - Interest on long-term debt 30,319,426 - - - (30,319,426) - (30,319,426) -

Total governmental activities 528,421,224 88,546,321 55,761,435 3,272,418 (380,841,050) - (380,841,050) -

Business-type activities:Convention Center Hotel 15,546,907 12,616,329 - - - (2,930,578) (2,930,578) - Parking 6,979,924 7,285,311 - - - 305,387 305,387 - Sewer 71,915,197 107,872,946 691,787 5,761,604 - 42,411,140 42,411,140 - Citywide Sports 517,816 363,430 - - - (154,386) (154,386) - Marinas 569,344 581,984 - - - 12,640 12,640 - Tennis operations 402,382 266,099 - - - (136,283) (136,283) - Golf operations and concessions 5,187,694 4,075,029 - - - (1,112,665) (1,112,665) - Air quality 682,801 744,000 - - - 61,199 61,199 - Printing and graphics 359,305 356,682 - - - (2,623) (2,623) - River Front Plaza and Marina 71,338 59,510 - - - (11,828) (11,828) -

Total business-type activities 102,232,708 134,221,320 691,787 5,761,604 - 38,442,003 38,442,003 -

Total primary government $ 630,653,932 222,767,641 56,453,222 9,034,022 (380,841,050) 38,442,003 (342,399,047) -

Component units:MECA $ 41,337,478 41,757,021 - - - - - 419,543 Heartland Workforce Solutions 2,810,311 176,710 2,693,627 - - - - 60,026

Total component units $ 44,147,789 41,933,731 2,693,627 - - - - 479,569

General revenues:Property taxes $ 144,656,976 - 144,656,976 - Motor vehicle taxes 10,338,405 - 10,338,405 - Sales and use taxes 142,645,168 - 142,645,168 - Business taxes 67,972,149 - 67,972,149 - Payments in lieu of taxes 5,666,434 - 5,666,434 - Unrestricted investment earnings 1,596,581 416,708 2,013,289 99,782 Miscellaneous - 840,733 840,733

Transfers (2,037,726) 2,037,726 - -

Total general revenues and transfers 370,837,987 3,295,167 374,133,154 99,782

Change in net position (10,003,063) 41,737,170 31,734,107 579,351

Net position – beginning of year, as restated (note 1s) 170,124,450 293,915,990 464,040,440 33,290,388

Net position – end of year $ 160,121,387 335,653,160 495,774,547 33,869,739

City of Omaha, Nebraska Balance Sheet – Governmental Funds

December 31, 2014

25

See accompanying notes to basic financial statements

Debt Nonmajor TotalGeneral Service Governmental Governmental

Fund Fund Funds Funds

Cash and pooled investments $ 2,967,973 12,524,569 31,198,302 46,690,844 Investments 62,581,415 - 4,319,551 66,900,966 Receivables (net of allowance for uncollectibles) 87,980,625 56,995,899 19,038,985 164,015,509 Due from other governments 26,496,889 2,434,137 17,277,082 46,208,108 Due from other funds - - 28,108,000 28,108,000 Accrued interest 120,929 - 145,450 266,379 Inventories 2,367,427 - - 2,367,427 Other assets 22,961 - 498,899 521,860 Restricted assets:

Funds with trustee - - 5,143,978 5,143,978

Total assets $ 182,538,219 71,954,605 105,730,247 360,223,071

Liabilities:Accounts payable and other $ 24,560,194 300,004 11,137,740 35,997,938 Due to other governments 1,879,448 - 25,000 1,904,448 Due to other funds 17,750,000 - 6,141,000 23,891,000 Unearned revenue 56,885 11,719 4,298,963 4,367,567

Total liabilities 44,246,527 311,723 21,602,703 66,160,953

Deferred inflows of resources:Unavailable revenue 69,825,163 52,435,390 26,118,713 148,379,266

Fund balances:Nonspendable 2,390,388 - 3,274,288 5,664,676 Restricted 889,911 19,207,492 47,522,983 67,620,386 Committed - - 13,106,594 13,106,594 Assigned 5,397,753 - 636,511 6,034,264 Unassigned 59,788,477 - (6,531,545) 53,256,932

Total fund balance 68,466,529 19,207,492 58,008,831 145,682,852 Total liabilities, deferred inflows of

resources, and fund balances $ 182,538,219 71,954,605 105,730,247

Amounts reported for governmental activities in the statement of net position are different because:Capital assets used in governmental activities are not current financial resources

and, therefore, are not reported in the funds 1,145,772,076 Deferred outflows of resources relating to the loss on refunding of long-term

debt are not current financial resources and, therefore, are not reportedin the funds 32,022,978

Revenues earned during the current period are not available as resources and, therefore, are recorded as unavailable revenue in the funds 148,379,266

Long-term liabilities, including bonds payable and pension obligations, are not due and payable in the current period and, therefore, are not reported in thefunds (see note 5) (1,311,735,785)

Net position of governmental activities $ 160,121,387

Liabilities, Deferred Inflows of

Assets

Resources, and Fund Balances

City of Omaha, Nebraska Statement of Revenues, Expenditures, and Changes

in Fund Balances – Governmental Funds


26


Debt Nonmajor TotalGeneral Service Governmental Governmental

Fund Fund Funds FundsRevenues:

Taxes:Property $ 78,337,117 54,429,190 8,429,201 141,195,508 Motor vehicle 10,338,405 - - 10,338,405 City sales and use 142,645,168 - - 142,645,168 Business 67,140,142 - 838,998 67,979,140 In lieu 5,446,044 197,957 22,433 5,666,434

Licenses and permits 9,165,909 - 2,053,148 11,219,057 Intergovernmental - 2,322,845 43,073,480 45,396,325 Investment income 1,190,135 181,031 225,415 1,596,581 Revenue from Keno 592,074 - 7,130,917 7,722,991 Charges for services 24,404,043 1,587,232 28,593,570 54,584,845 Rents, royalties, and other 1,485,981 - 1,580,551 3,066,532 Contributions and grants 1,015,207 6,855,352 33,395,936 41,266,495

Total revenues 341,760,225 65,573,607 125,343,649 532,677,481

Expenditures:Current:

General government 39,540,175 1,467,546 6,996,543 48,004,264 Public safety 223,367,872 - 5,704,373 229,072,245 Transportation services 816,503 - 53,574,251 54,390,754 Other public services 17,730,595 - 2,794,834 20,525,429 Community development 11,830,551 - 19,800,372 31,630,923 Culture and parks 29,790,382 - 5,866,566 35,656,948

Debt service:Principal 6,189,843 53,254,446 5,536,210 64,980,499 Interest 2,819,900 22,142,701 6,771,499 31,734,100 Bond issuance costs - 420,440 - 420,440

Capital outlay 1,012,931 - 30,672,206 31,685,137

Total expenditures 333,098,752 77,285,133 137,716,854 548,100,739

Excess (deficiency) of revenuesover expenditures 8,661,473 (11,711,526) (12,373,205) (15,423,258)

Other financing sources (uses):Transfers in 150,000 - 4,370,389 4,520,389 Transfers out (3,088,833) - (2,744,406) (5,833,239) Issuance of debt - - 19,258,012 19,258,012 Issuance of refunding debt - 51,110,000 - 51,110,000 Premium on debt issued - 9,450,273 1,680,688 11,130,961 Payment to escrow agent - (49,035,479) - (49,035,479) Sale of capital assets - - 1,575,285 1,575,285

Total other financing sources (uses) (2,938,833) 11,524,794 24,139,968 32,725,929

Net change in fund balances 5,722,640 (186,732) 11,766,763 17,302,671

Fund balances – beginning of year, as restated (note 1s) 62,743,889 19,394,224 46,242,068 128,380,181

Fund balances – end of year $ 68,466,529 19,207,492 58,008,831 145,682,852

City of Omaha, Nebraska Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances for Governmental Funds to the Statement of Activities for Governmental Activities


27


Amounts reported for governmental activities in the statement of activitiesare different because:

Net change in fund balances – total governmental funds $ 17,302,671

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciationexpense. This is the amount by which depreciation expense exceeded capital outlays in the current period (see note 5). (9,776,714)

The net effect of capital contribution transactions and the sale of capital assets increased net position. 22,031,794

Deferred outflows of resources relating to the loss on refundings of long-term debt are nota current financial resource, and therefore, the amortization of these deferred outflowsof resources are not reported as expenditures in the funds. (2,816,001)

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 2,848,257

The issuance of long-term debt (e.g., bonds, leases, etc.) and long-term liabilities provide current financial resources to governmental funds, whereas the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiumsand discounts, when debt is first issued, whereas these amounts are advanced and amortized inthe statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items (see note 5). (3,529,427)

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds (see note 5). (36,063,643)

Change in net position - governmental activities $ (10,003,063)

City of Omaha, Nebraska Statement of Net Position -

Proprietary Funds

December 31, 2014

28


Convention Parking Sewer Nonmajor TotalCenter Hotel Facilities Revenue Enterprise Proprietary

Assets and Deferred Outflows of Resources Fund Fund Fund Funds Funds

Assets: Current assets:

Cash and cash equivalents $ 24,117 1,488,523 173 1,116,899 2,629,712 Investments - - 147,688,347 - 147,688,347 Receivables (net of allowance for uncollectibles) 332,357 332,952 1,634,988 142,343 2,442,640 Due from other governments - - 8,825,744 - 8,825,744 Due from other funds - - - 1,275,600 1,275,600 Accrued interest receivable 58 - 122,504 - 122,562 Inventories - - 740,600 21,169 761,769 Restricted assets:

Funds with trustee 8,906,301 - - - 8,906,301

Total current assets 9,262,833 1,821,475 159,012,356 2,556,011 172,652,675 Noncurrent assets:

Restricted assets:Investments - - 28,830,700 - 28,830,700 Funds with trustee 13,105,333 - - - 13,105,333

Advanced charges 577,801 - 118,294 - 696,095 Capital assets:

Land - 2,473,344 2,721,046 - 5,194,390 Infrastructure - - 871,077,375 - 871,077,375 Buildings and systems 91,750,625 61,363,255 53,196,856 9,228,130 215,538,866 Furniture and fixtures 15,352,954 - - - 15,352,954 Machinery and equipment 4,273,453 19,548 10,778,358 2,046,620 17,117,979 Cultural assets 735,978 - - - 735,978 Construction in progress - - 155,913,501 8,159 155,921,660

112,113,010 63,856,147 1,093,687,136 11,282,909 1,280,939,202 Less accumulated depreciation (35,989,549) (37,968,589) (381,855,329) (7,251,685) (463,065,152)

Capital assets, net 76,123,461 25,887,558 711,831,807 4,031,224 817,874,050 Total noncurrent assets 89,806,595 25,887,558 740,780,801 4,031,224 860,506,178 Total assets 99,069,428 27,709,033 899,793,157 6,587,235 1,033,158,853

Deferred outflows of resources:Loss on refunding of bonds 3,234,607 270,994 153,130 - 3,658,731

Total assets and deferred outflows of resources $ 102,304,035 27,980,027 899,946,287 6,587,235 1,036,817,584

Liabilities and Net PositionLiabilities:

Current liabilities:Accounts payable and other current liabilities $ 166,286 96,260 23,130,302 211,196 23,604,044 Accrued interest payable 3,122,348 474,604 1,514,117 - 5,111,069 Due to other funds - - 4,217,000 1,275,600 5,492,600 Current installments of long-term debt 1,525,000 2,810,000 11,179,101 - 15,514,101 Workers’ compensation and healthcare claims - 19,693 710,448 199,955 930,096 Compensated absences - 2,424 113,052 24,335 139,811

Total current liabilities 4,813,634 3,402,981 40,864,020 1,711,086 50,791,721 Noncurrent liabilities:

Long-term debt, excluding current installments 143,377,432 28,304,305 451,753,699 - 623,435,436 Net pension obligation - 264,127 9,890,991 1,941,498 12,096,616 Postretirement benefit obligation - 241,638 9,048,837 1,776,193 11,066,668 Workers’ compensation and healthcare claims - 41,752 1,506,274 423,939 1,971,965 Compensated absences - 31,247 1,457,104 313,667 1,802,018

Total noncurrent liabilities 143,377,432 28,883,069 473,656,905 4,455,297 650,372,703

Total liabilities 148,191,066 32,286,050 514,520,925 6,166,383 701,164,424 Net position:

Net investment in capital assets (68,830,872) (5,430,357) 256,299,773 4,031,224 186,069,768 Restricted for debt service 22,011,634 - - - 22,011,634 Unrestricted 932,207 1,124,334 129,125,589 (3,610,372) 127,571,758

Total net position (45,887,031) (4,306,023) 385,425,362 420,852 335,653,160

Total liabilities and net position $ 102,304,035 27,980,027 899,946,287 6,587,235 1,036,817,584

City of Omaha, Nebraska Statement of Revenues, Expenses, and Changes in Net Position -

Proprietary Funds


29



Fund Fund Fund Funds FundsOperating revenues:

Charges for services $ 12,616,329 7,285,311 108,564,733 6,446,734 134,913,107 Total operating revenues 12,616,329 7,285,311 108,564,733 6,446,734 134,913,107

Operating expenses:Personal services - 295,501 19,095,234 4,675,542 24,066,277 Outside services 146,931 2,079,736 12,634,422 1,134,026 15,995,115 Operation and maintenance 2,075,579 498,689 8,880,418 1,289,179 12,743,865 Cost of sales and services - - - 340,704 340,704 Depreciation and amortization 5,769,410 2,409,965 22,786,911 351,229 31,317,515

Total operating expenses 7,991,920 5,283,891 63,396,985 7,790,680 84,463,476 Operating income (loss) 4,624,409 2,001,420 45,167,748 (1,343,946) 50,449,631

Nonoperating revenues (expenses):Investment income 25,223 - 391,485 - 416,708 Interest expense (7,554,987) (1,696,033) (8,518,212) - (17,769,232) Loss on disposal of assets - - - (359,638) (359,638) Miscellaneous - 840,733 - 1,084,514 1,925,247

Total nonoperating revenues (expenses) (7,529,764) (855,300) (8,126,727) 724,876 (15,786,915) Net income (loss) before contributions and transfers (2,905,355) 1,146,120 37,041,021 (619,070) 34,662,716

Transfers in - 1,215,983 120,184 68,024 1,404,191 Transfers out - - (62,341) (29,000) (91,341) Contributed capital - - 5,761,604 - 5,761,604

Change in net position (2,905,355) 2,362,103 42,860,468 (580,046) 41,737,170 Net position, beginning of year (42,981,676) (6,668,126) 342,564,894 1,000,898 293,915,990 Net position, end of year $ (45,887,031) (4,306,023) 385,425,362 420,852 335,653,160

City of Omaha, Nebraska Statement of Cash Flows -

Proprietary Funds


30



Fund Fund Fund Funds FundsCash flows from operating activities:

Receipts from customers $ 12,616,329 7,267,518 107,090,000 6,345,565 133,319,412 Payments to suppliers (2,409,221) (2,544,031) (21,039,538) (2,686,611) (28,679,401) Payments to employees - (325,662) (16,457,938) (3,773,164) (20,556,764)

Net cash provided by (used in) operating activities 10,207,108 4,397,825 69,592,524 (114,210) 84,083,247 Cash flows from noncapital financing activities:

Transfers in (out) - 1,215,983 57,843 13,484 1,287,310 Advances from (to) other funds (40,000) - 18,617,000 55,000 18,632,000

Net cash provided by (used in) noncapital financing activities (40,000) 1,215,983 18,674,843 68,484 19,919,310

Cash flows from capital and related financing activities:Capital expenditures (765,741) (19,549) (108,463,648) (164,305) (109,413,243) Payments on long-term debt (1,340,000) (2,700,000) (9,040,000) - (13,080,000) Issuance of long-term debt - - 138,376,811 - 138,376,811 Interest paid (7,852,791) (1,648,642) (8,746,819) - (18,248,252)

Net cash provided by (used in) capital and related financing activities (9,958,532) (4,368,191) 12,126,344 (164,305) (2,364,684)

Cash flows from investing activities:Net sale/purchases of investment securities (209,988) - (121,288,352) - (121,498,340) Interest received 25,172 - 333,768 - 358,940

Net cash used in investing activities (184,816) - (120,954,584) - (121,139,400) Net increase (decrease) in cash and cash equivalents 23,760 1,245,617 (20,560,873) (210,031) (19,501,527)

Cash and cash equivalents, beginning of year 357 242,906 20,561,046 1,326,930 22,131,239

Cash and cash equivalents, end of year $ 24,117 1,488,523 173 1,116,899 2,629,712

City of Omaha, Nebraska Statement of Cash Flows -

Proprietary Funds (Continued)


31



Fund Fund Fund Funds FundsReconciliation of operating income (loss) to net cash provided by

(used in) operating activities:Operating income (loss) $ 4,624,409 2,001,420 45,167,748 (1,343,946) 50,449,631 Adjustments to reconcile operating income (loss) to net cash provided

by (used in) operating activities:Depreciation and amortization 5,769,410 2,409,966 22,786,911 351,229 31,317,516 Cash flows impacted by changes in:

Receivables - (17,793) (1,474,733) (93,908) (1,586,434) Inventories - - 12,341 462 12,803 Advance charges 29,822 - 5,606 10,000 45,428 Accounts payable and other current liabilities (216,533) 34,393 457,355 59,575 334,790 Worker's compensation and healthcare claims - (29,209) 332,773 102,522 406,086 Compensated absences - (952) (50,987) 37,543 (14,396) Net pension obligation - - 1,038,364 363,932 1,402,296 Postretirement benefit obligation - - 1,317,146 398,381 1,715,527

Net cash provided by (used in) operating activities $ 10,207,108 4,397,825 69,592,524 (114,210) 84,083,247

Supplemental disclosure of noncash capital and related financing activitiesCapital asset acquisitions included in accounts payable $ 164,160 - 4,664,377 - 4,828,537 Contribution of capital assets - - 5,761,604 - 5,761,604 Amortization of premiums (discounts), net 110,062 2,135 761,710 1,545 875,452

City of Omaha, Nebraska Statement of Fiduciary Net Position -

Fiduciary Funds

December 31, 2014

32


Pension Trust AgencyFunds Funds

Assets:Cash and cash equivalents $ 7,629,005 15,060,212 Receivables:

Accounts receivable 3,070,871 23,938 Other receivables - - Accrued interest 2,067,128 575

Due from other governments 28,871 - Due from other funds - 7,600 Investments, at fair value:

Government securities 18,369,069 1,185,514 Municipal issues 4,675,757 - Corporate bonds 138,922,799 - Domestic equities 250,730,822 - International equities 161,359,507 - Domestic real estate securities 168,478,883 - International real estate 2,591,180 - Commodities 14,294,379 - Private equity 35,474,383 - Hedge funds 18,779,086 - Cash and cash equivalents 13,324,497 -

Total assets 839,796,237 16,277,839

Liabilities:Accounts payable and other liabilities 1,138,623 16,270,239 Due to other funds - 7,600

Total liabilities 1,138,623 16,277,839

Net position restricted for pensions $ 838,657,614 -

City of Omaha, Nebraska Statement of Changes in Fiduciary Net Position -

Pension Trust Funds

December 31, 2014

33


Additions:Contributions:

Employer $ 54,178,629 Employee 25,944,774

Total contributions 80,123,403

Investment earnings:Dividends and interest 22,409,466 Net increase in the fair value of investments 18,461,882

Total investment earnings 40,871,348

Less investment expenses (4,284,355)

Net investment income 36,586,993

Total additions 116,710,396

Deductions:Benefit payments 97,890,248

Change in net position 18,820,148

Net position restricted for pensions, beginning of year 819,837,466

Net position restricted for pensions, end of year $ 838,657,614

City of Omaha, Nebraska Discretely Presented Component Units Combining Statement of Net Position

December 31, 2014

34


HeartlandWorkforce

Assets MECA Solutions TotalCash and pooled investments $ 13,885,467 155,360 14,040,827 Investments 11,451,605 - 11,451,605 Receivables (net of allowance for uncollectibles) 3,779,986 - 3,779,986 Due from other governments - 171,867 171,867 Other assets 2,820,152 10,114 2,830,266 Capital assets:

Nondepreciable 25,631 - 25,631 Depreciable 23,123,991 233,780 23,357,771

Total assets $ 55,086,832 571,121 55,657,953

Liabilities and Net Position

Liabilities:Accounts payable and other $ 13,789,015 238,713 14,027,728 Long-term liabilities:

Other liabilities 5,549,525 - 5,549,525 Notes payable:

Due within one year 575,946 24,381 600,327 Due in more than one year 1,553,944 56,690 1,610,634

Total liabilities 21,468,430 319,784 21,788,214

Net position:Net investment in capital assets 21,019,732 152,709 21,172,441 Unrestricted 12,598,670 98,628 12,697,298

Total net position 33,618,402 251,337 33,869,739

Total liabilities and net position $ 55,086,832 571,121 55,657,953

City of Omaha, Nebraska Discretely Presented Component Units

Combining Statement of Activities


35


Program RevenuesOperating Capital Heartland

Charges for Grants and Grants and WorkforceExpenses Services Contributions Contributions MECA Solutions Total

Functions/programs:Component Units

MECA $ 41,337,478 41,757,021 - - 419,543 - 419,543 Heartland Workforce Solutions 2,810,311 176,710 2,693,627 - - 60,026 60,026

Total other component units 44,147,789 41,933,731 2,693,627 - 419,543 60,026 479,569

General revenues:Investment earnings 99,782 - 99,782

Total general revenues 99,782 - 99,782

Change in net position 519,325 60,026 579,351

Net position, beginning of year 33,099,077 191,311 33,290,388

Net position, end of year $ 33,618,402 251,337 33,869,739

Net Revenue andChanges in Net Position

City of Omaha, Nebraska Notes to Basic Financial Statements

December 31, 2014

36 (Continued)

(1) Summary of Significant Accounting Policies

(a) Reporting Entity

The City of Omaha, Nebraska (the City) was incorporated on February 2, 1857. The City operates under a Home Rule Charter and has a mayor-council form of government with an elected full-time chief executive, the Mayor, and an elected legislative body, the council, composed of seven members. The seven council members each represent one of the City’s seven districts. The Mayor and members of the council are elected through popular vote to four-year terms. The City is a political subdivision of the state of Nebraska and is exempt from state and federal income taxes.

The governmental reporting entity consists of the City (the primary government) and its component units. Component units are legally separate organizations for which the City is financially accountable or other organizations whose nature and significant relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board and (i) either the City’s ability to impose its will on the organization or (ii) there is potential for the organization to provide financial benefit to or impose a financial burden on the City.

The basic financial statements include both blended component units and the City’s discretely presented component units. The blended component units, although legally separate entities, are, in substance, part of the City’s operations, and data from these units are included with data of the primary government. The City’s basic financial statements blend the activity of the City of Omaha Parking Facilities Corporation, the City of Omaha Impound Facilities Corporation, the City of Omaha Stadium Facilities Corporation, City of Omaha Northwest Library Facilities Corporation, the City of Omaha Facilities Corporation, and City of Omaha Convention Hotel Corporation. The City is financially accountable for these organizations and they provide services entirely to the City of Omaha.

The City reports its respective ownership percentage of the assets, liabilities, net position, and operating activity of the Omaha-Douglas Public Building Commission (ODPBC), a related party joint venture. The ODPBC was created by state law on May 19, 1971. The purpose of the ODPBC is to provide a means whereby buildings, structures, and facilities can be acquired, constructed, remodeled or renovated and financed for use jointly by the City of Omaha and Douglas County. ODPBC is governed by a five member board of commissioners. Douglas County and the City of Omaha each appoint two members and the resulting four members appoint the fifth member. The City leases space in the Omaha Douglas Civic Center and the adjoining Hall of Justice from the ODPBC under a lease that expires only upon payment of all outstanding bonds of the ODPBC. The annual rental payments are determined based upon actual space occupied by the City for operation and maintenance, which has been determined to be 30%. Separate financial statements for ODPBC’s fiscal year ended June 30, 2014 are available at 1819 Farnam Street, Omaha, Nebraska 68183.


December 31, 2014

37 (Continued)

The City has engaged in related-party transactions as defined under Governmental Accounting Standards Board (GASB) Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards, with the Omaha Housing Authority, Omaha Airport Authority, and Metro Transit Authority where the Mayor or City Council appoints board members to these organizations. The City’s accountability for these organizations does not extend beyond making the appointments.

The aggregate discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize that they are legally separate from the primary government. The City’s basic financial statements discretely present the financial position and activities of the Metropolitan Entertainment and Convention Authority (MECA) and Heartland Workforce Solutions (HWS).

Metropolitan Entertainment and Convention Authority

Metropolitan Entertainment and Convention Authority (MECA) is a separate nonprofit corporation that is responsible for the operation of the Omaha Convention Center/Arena, Civic Auditorium, and Downtown Stadium. The Civic Auditorium ceased operations as of June 30, 2014 and from that date is no longer under the management of MECA. Title to the facilities and all related infrastructure assets are vested with the City. Construction activities were principally funded by private donations and general obligation bonds of the City, and the board members of MECA are appointed by the City. The financial statements for MECA included herein are for the year ended June 30, 2014. MECA’s separate financial statements are available at 1819 Farnam Street, Omaha, Nebraska 68183.

Heartland Workforce Solutions

Heartland Workforce Solutions (HWS) is a separate 501(c)(3) nonprofit corporation that was formed in October 2010. HWS administers the Workforce Investment Act to expand employment opportunities for youth, adults, and dislocated workers in Douglas, Sarpy, and Washington Counties in Nebraska. The organization receives the majority of its funding from the City of Omaha as pass-through federal funds. The Mayor of the City of Omaha is the chief elected official of the Tri-County workforce area. The Mayor appoints all board members and approves HWS’s budget. The financial statements for HWS included herein are for the fiscal year ended June 30, 2014. Separate financial statements for HWS are available at 1819 Farnam Street, Omaha, Nebraska 68183.

Related Organizations

The City’s officials are responsible for appointing members of the boards of other organizations, but the City’s accountability for these organizations does not extend beyond making the appointments. The Mayor or City Council appoints board members of the Omaha Housing Authority, the Omaha Airport Authority, and the Metro Area Transit Authority. The City is not financially accountable for these organizations.


December 31, 2014

38 (Continued)

The Douglas Omaha Technology Commission (DOT.Comm) is a governmental entity formed by an interlocal agreement between the City and Douglas County (the County). The purpose of this entity is to increase the cooperative efforts of the County and the City in connection with electronic information, voice, and data communication services for governmental operations, and public services. The Mayor appoints two members of the DOT.Comm Oversight Committee, which has a total of seven members. The City Finance Director is a permanent member of the Oversight Committee. DOT.Comm has control over its operations and fiscal matters and holds title to its assets. DOT.Comm’s revenues are primarily derived from maintenance fees from the City and County. Separate financial statements can be obtained from its office at 408 South 18th Street, Omaha, Nebraska 68102.

(b) Basis of Presentation

Government wide Financial Statements

The statement of net position and statement of activities display information about the primary government and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize interfund activities. All interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City and between the City and its discretely presented component units. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (1) charges paid by the recipients of goods or services offered by the programs and (2) grants and contributions that are restricted to meeting the operation or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements

The fund financial statements provide information about the City’s funds, including fiduciary funds. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as investment earnings, result from nonexchange transactions, or ancillary activities.


December 31, 2014

39 (Continued)

The City reports the following major governmental funds:

• The general fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds.

• The debt service fund is used to account for the resources for, and the payment of, general long-term debt principal, interest, and related costs.

The City reports the following major proprietary funds:

• The convention center hotel fund is used to account for costs associated with the construction and operation of the Convention Center Hotel.

• The parking facilities fund accounts for all revenues from parking garages, surface lots, parking meters and parking violations and late fees, and the related operation, maintenance, and construction expenditures for all parking facilities. Prior to January 1, 2013, the parking facilities fund accounted for only parking garages and the other parking related activities were recorded within the general fund.

• The sewer revenue fund accounts for activity from sewer service charges, construction grants, and related expenditures for operation, maintenance, and capital improvements of the sanitary sewerage system and wastewater treatment plants.

The City also reports the following additional nonmajor fund types:

• The special revenue funds account for the proceeds from specific revenue sources that are restricted to expenditures for specified purposes.

• The capital projects funds account for all resources received and used for the acquisition or development of major capital improvements (other than those financed by proprietary funds and trust funds).

• The debt service fund is used to account for the resources for, and the payment of specific long-term debt principal, interest, and related costs of redevelopment debt.

• The permanent funds are used to report resources that are legally restricted to the extent that earnings, and not principal, may be used for purposes that support the City’s programs for the benefit of the City or its citizenry.

• The enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises: (a) where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.


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• The pension trust funds accumulate contributions from the City and its employees and earnings from the funds’ investments. Disbursements are made from the funds for pension payments to City retirees.

• The agency funds account for assets held by the City as an agent for various local governments.

(c) Basis of Accounting

The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been met.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain state and federal grants, and charges for service revenues are recognized when their receipt occurs within 60 days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, except for debt service expenditures and other long-term liabilities, which are recorded only when due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds and issuances of long-term debt are reported as other financing sources and uses.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for goods and services. Operating expenses include the cost of sales and service, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

(d) Pooled Cash and Investments

The City maintains a pooled cash and investment account for all funds except the pension trust funds. These funds are placed in the custody of the City Treasurer. Each fund reports its undistributed interest in the principal balance of the pool. Interest earned on the City’s pooled cash and investments is credited to the general fund of the City, except for the following accounts from which interest earned is credited directly to the respective account: Don Hayes Memorial, Ralph Anderson Memorial, Cash Reserve, Western Heritage/Byron Reed, Asarco Remediation, Sewer Revenue, and Sewer Construction accounts. Interest is imputed and transferred to the Keno, Police Seized Assets, and Western Heritage accounts.


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(e) Cash and Cash Equivalents

For purposes of the accompanying statement of cash flows, the City considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents.

(f) Investments

Investments are stated at fair value. Securities traded on a national or international exchange are valued at the last reported sales prices at current exchange rates and where marketable securities are not listed on an exchange, quotations are obtained from brokerage firms or national pricing services. Income from investments not included in pooled cash and investments that are held by individual funds is recorded in the respective funds as it is received. Accrued interest is recorded at year-end.

(g) Inventories

Inventories of materials and supplies are stated at the lower of cost or market using the first-in, first-out method. The costs of inventories are recorded as assets when purchased and expended as used.

(h) Revenue

• Property tax: Nebraska Legislative Bill (LB) 1114 imposes a tax ceiling for general revenue purposes. The tax levy certified in any year shall not exceed $0.45 per $100 of actual valuation. The 2014 general tax levy ($0.26597 per $100 of assessed valuation) was below the legal limit by $0.18403 or approximately $53.3 million.

The Home Rule Charter of the City imposes a tax ceiling for general revenue purposes. The tax levy certified in any year shall not exceed $0.6125 per $100 of actual valuation plus whatever tax levy is necessary to provide for principal and interest payments on the indebtedness of the City for administrative expenses incurred in issuing and maintaining bonds and for satisfaction of judgments and litigation expenses in connection therewith. The 2014 general tax levy ($0.26597 per $100 of assessed valuation) was below the legal limit by $0.34653, or approximately $100.4 million. The assessed value upon which the 2014 levy was based was $28,961,164,220.

The tax levies for all political subdivisions in Douglas County are certified by the county board on or before October 15. Real estate taxes are due and become an enforceable lien on property on December 31. The first half of real estate taxes becomes delinquent on April 1 and the second half becomes delinquent on August 1 following the levy date. Personal property taxes are due on December 31 and become delinquent on April 1 and August 1 following the levy date. Delinquent taxes bear 14% interest.

• Motor vehicle tax: Motor vehicle tax is imposed upon all motor vehicles registered for operation upon the highways of the State of Nebraska. This tax is imposed at the rates authorized by the State and in the manner and for the purpose specified. The Motor Vehicle Tax is assessed on a vehicle at the time of initial registration and annually


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thereafter until the vehicle reaches 14 years of age or more. It is based upon the Manufacturer’s Suggested Retail Price of the vehicle.

• City sales and use tax: A tax imposed upon the sale transactions within the corporate limits of the City on which the State is authorized to impose a tax according to the provisions of the Nebraska Revenue Act of 1967. Sales tax collected by the State is remitted to the City two months after the month of sale. The City’s sales tax is 1.5% and is added to the 5.5% State sales tax set by the Nebraska Legislature. (The State Department of Revenue retains a 3% collection charge on all of the City’s sales tax receipts.) This revenue pays the City’s day-to-day operations.

• Business tax: Includes the cable television franchise fee, keno administrative fee, hotel/motel occupation tax, restaurant occupation tax, tobacco occupation tax, vehicle rental occupation tax, Omaha Public Power District occupation tax, Metropolitan Utilities District occupation tax and vending machines concessions. These fees/taxes were implemented to raise money for the City and to fund special projects.

• Taxes in lieu: Includes payments made by tax exempt quasi-public entities to the local government (including the City) in place of property taxes. The quasi-public entities include Metropolitan Utilities District (MUD) and Omaha Public Power District (OPPD). MUD pays 2% of the annual gross revenue derived from all retail sales of water and gas sold by the MUD within the City of Omaha. OPPD pays the amount paid in lieu of taxes in 1957 which was $183,998. The OPPD in-lieu-of tax payment received is distributed to the General, Judgment, Debt Service, and Redevelopment Debt Service Funds in the same proportion that each respective ad valorem tax levy is in relation to the total City ad valorem tax levy.

• License and permits: Includes various licensing fees, permit fees, and other fees related to professional/business activities (beer and liquor permits, firearm permits, pawnbroker’s permits, theater permits). A majority of these fees were implemented to raise money for the City; however, some items were implemented to regulate businesses and professionals that require a license or permit to practice.

• Intergovernmental: Includes federal and state grants and state tax distribution. The federal and state grants are sought by the City to help fund specific programs and projects which probably could not be fully funded or implemented without financial assistance from outside agencies and special interest groups. The state tax distribution was set up to provide for State aid to political subdivisions. This revenue source established in 1982, by the State of Nebraska, replaced the City's allocation of personal property tax relief and the City's allocation of proceeds of State sales and income taxes from the State Governmental Subdivision Fund prior to 1983.

• Investment income: Revenue source provided from the investment of idle City funds.


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• Revenue from Keno: Includes the City of Omaha’s share of the keno revenues generated under contractual agreements. The City of Omaha receives no less than 12.75% of the gross keno handled, plus unclaimed winning keno tickets. There is one contractor, EHPV Lottery Services LLC, d/b/a Big Red Keno.

• Charges for services: Includes various fees and surcharges related to professional and business activities (asbestos removal, parking meters, swimming fees, tree removal). A majority of these fees were implemented to raise money for the City in order to recover costs of maintenance, upkeep of public property, administration costs, and costs related to the service provided by the City.

• Rents, royalties, and other: Includes rental of publicly-owned property to private citizens for authorized purposes. The City rents/leases a parcel of land located on the Omaha Riverfront property. A full service restaurant and bar is currently operated at this location.

• Contributions and grants: Includes federal, state, and private funding for various items such as: neighborhood development projects, community development activities, shelter for homeless and temporarily displaced families, housing rehabilitation and home buyer assistance, renovation of Omaha Police Department public safety projects, and after school activities.

(i) Capital Assets

Within the government-wide and proprietary fund financial statements, capital assets, including infrastructure, are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Contributed fixed assets, including cultural assets (e.g. works of art) are valued at their estimated fair market value on the date of donation. Capital assets include public domain infrastructure, including roads and bridges. The City defines capital assets as assets with individual costs of more than $10,000 and estimated useful lives in excess of one year. Capital assets used in operations are depreciated or amortized using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide and proprietary fund financial statements. Assets are depreciated using the half-year convention in the first and last years of the asset’s useful life. Cultural assets are not depreciated.

The estimated useful lives are as follows:

Infrastructure 15 – 50 yearsBuildings and systems 15 – 50 yearsImprovements 5 – 30 yearsMachinery and equipment 5 – 20 yearsVehicles 5 – 15 yearsFurniture and Fixtures 5 – 7 years

Net interest costs on funds borrowed to finance the construction are capitalized and depreciated over the life of the related asset.


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(j) Compensated Absences

Employees earn annual vacation and sick leave at various specific rates during their period of employment. In the event of termination, an employee is reimbursed for accumulated vacation time. This balance is the total of a yearly carryover, up to a maximum of 280 hours for civilian bargaining and civilian management employees, plus the current year’s leave balance. Civilian management and bargaining employees are reimbursed for a percentage of accumulated sick leave up to a maximum of 2,000 hours (612.5 maximum paid hours). Civilian and nonexempt management employees have the option of accruing compensatory leave time at a rate of one and one half times the actual hours worked in lieu of the payment of overtime. Employees may accrue a maximum of 120 hours of compensatory time. The compensatory time must be taken within three months after the end of the calendar year in which it is earned and any remaining amounts are paid out in cash. However, the employee retains the right to cash out the compensatory leave balance at any time.

In the event of termination, police employees are reimbursed for accumulated vacation time up to a maximum of 320 hours, plus the current year leave balance. Upon retirement, death, or resignation after 20 years, police employees receive 1 for 1 for the first 1,200 hours of accumulated sick leave and 1 for 4 hours thereafter up to a maximum of 3,200 hours (1,700 maximum paid hours). Police management are reimbursed for accumulated vacation time up to a maximum of 320 hours plus the current year leave balance. Police management will receive sick leave payout for up to 3200 hours at the same rates as police employees. Police employees may accrue a maximum of 360 hours of compensatory time. In the event of termination, fire department 24-hour shift employees are reimbursed for accumulated vacation time up to a maximum of 432 hours, plus current year accumulation. Upon retirement or resignation, fire bargaining 24-hour shift employees are reimbursed for accumulated sick leave at 65% of actual hours. For every quarter a fire bargaining employee does not use sick leave or family sick leave, they earn an additional 0.25% up to the maximum of 10% toward their sick leave payoff. In the event of termination, fire management employees are reimbursed for accumulated vacation time up to a maximum of 280 hours, plus current year accumulation. Upon retirement, fire management employees are reimbursed for accumulated sick leave 1 for 1 for the first 1,200 hours and 1 for 4 the next 2,000 hours for a maximum of 1,700 paid hours. In the event of termination, fire department 40-hour shift employees are reimbursed for accumulated vacation time up to a maximum of 291.48 hours, plus current year accumulation. Upon retirement or resignation, 40-hour shift employees are converted to 24-hour shift employees and reimbursed for accumulated sick leave as above.

For the government-wide, proprietary, and fiduciary fund financial statements, vacation leave and other compensated absences with similar characteristics are accrued as the benefits are earned if the leave is attributable to past service and it is probable that the City will compensate the employees for such benefits. Such accruals are based on current salary rates and include salary-related payments, such as the employer’s matching Social Security and Medicare costs, associated with payments made for compensated absences on termination. In the governmental funds, a liability for these amounts is reported only if they are due as a payable.


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(k) Risk Management

The City is exposed to various risk of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City is self-insured with respect to its obligation to provide workers’ compensation, general liability, property damage, unemployment benefits, and health and dental coverage.

The City purchases commercial insurance for property damage of City buildings and contents. The City purchases commercial insurance for aviation liability for the police aviation unit.

(l) Long-Term Obligations

In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are recorded and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expended in the year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond insurance, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, whereas discounts on debt issuances are reported as other financing uses.

(m) Interfund Transactions

Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans, which are reported as receivables and payables, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” or “advances to/from other funds.”

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

(n) Restricted Assets

Restricted assets include deposits with trustees of various enterprise funds and capital project funds.

(o) Deferred Outflows of Resources

In the government-wide financial statements and proprietary fund financial statements, the total deferred loss on refunding of bonds is reported as a deferred outflow of resources in the applicable statement of net position. The loss on refunding represents, for current refundings


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and advance refundings resulting in defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt and is recognized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or the life of the new debt, whichever is shorter.

(p) Deferred Inflows of Resources

Governmental funds report unavailable revenues as deferred inflow of resources in connection with receivables for revenues not considered measurable and available to liquidate liabilities of the current period. Resources received in advance of all eligibility requirements being met, other than time restrictions, are reported as unearned revenue.

(q) Use of Estimates

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

(r) Adoption of New Accounting Standards

During 2014, the City adopted the provisions of the following accounting standards:

• GASB Statement No. 67, Financial Reporting for Pension Plans, An Amendment of GASB Statement No. 25. The requirements of this statement will improve the financial reporting by state and local government pension plans primarily through enhanced note disclosures and schedules of required supplementary information.

• GASB Statement No. 69, Government Combinations and Disposals of Government Operations. The requirements of this statement will improve accounting and financial reporting by state and local governments by providing specific accounting guidance and requiring disclosures about government combinations and disposals of government operations.

• GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. The requirements of this statement will enhance comparability of financial statements among governments by requiring consistent reporting by those governments that extend or receive nonexchange financial guarantees.

The implementation of these standards did not have a significant impact on the City’s financial statements.


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(s) Adjustment Applicable to Prior Years

During 2014, the City retroactively restated beginning net position/ fund balance to properly reflect property tax receivables, related unavailable revenues, and capital assets as of December 31, 2013. The following table summarizes these adjustments and what their impact would have been on the change in net position / fund balance for the 2013 fiscal year:

Debt Other Total Governmental General Service Governmental Governmental

Activities Fund Fund Funds FundsBeginning net position/fund balance,

as previously reported $ 145,526,337 56,624,847 15,246,819 45,643,040 117,514,706

Adjustment applicable to prior yearsReceivables, net (2,917,643) (2,986,068) (2,023,917) 2,092,343 (2,917,642) Unavailable revenues - 9,105,110 6,171,322 (1,493,315) 13,783,117 Capital assets, nondepreciable 27,515,756 - - - -

Total adjustments 24,598,113 6,119,042 4,147,405 599,028 10,865,475

Beginning net position/fund balance,as restated $ 170,124,450 62,743,889 19,394,224 46,242,068 128,380,181

Approximate impact on fiscal 2013 change in net position/fund balance $ 13,475,000 (1,960,000) (1,330,000) (280,000) (3,570,000)

Governmental Funds

(2) Interfund Receivables, Payables, and Transfers

Individual interfund receivables and payables at December 31, 2014 are as follows:

Receivable Fund Amount Payable FundNonmajor Governmental Funds $ 4,217,000 Sewer Revenue Fund -

Major Enterprise Fund

Nonmajor Governmental Funds 17,750,000 General Fund

Nonmajor Governmental Funds 6,141,000 Nonmajor Governmental Funds

Nonmajor Enterprise Funds 1,275,600 Nonmajor Enterprise Funds

Agency Funds 7,600 Agency Funds All remaining balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. All amounts are expected to be paid within one year.


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Transfers are related to funding for capital projects, lease payments, debt service, or reallocations of special revenues. The following schedule briefly summarizes the City’s transfer activity:

Nonmajor Nonmajor Sewer ParkingGeneral Governmental Enterprise Revenue Facilities

Fund Funds Funds Fund Fund TotalMajor governmental funds:

General fund $ - 1,847,571 26,683 - 1,214,579 3,088,833 Major enterprise funds:

Sewer revenue fund 50,000 - 12,341 - - 62,341 Parking facilities fund - - - - - -

Nonmajor enterprise funds - - 29,000 - - 29,000 Nonmajor governmental funds 100,000 2,522,818 - 120,184 1,404 2,744,406

Total $ 150,000 4,370,389 68,024 120,184 1,215,983 5,924,580

Transfers InMajor Enterprise Funds

Transfers Out

(3) Deposits and Investments

The City has generally pooled the cash resources of the various funds, except the pension trust fund, for investment purposes. Interest earned on pooled funds is credited to the City’s general fund, except for a few specific instances, as noted in footnote 1.

(a) Summary

The following is a complete listing of the deposits and investments of the City, excluding the pension trust funds, as of December 31, 2014:

Investment type Fair ValueDeposits $ 87,989,825 Investments 220,940,675 Trustee accounts

Cash and cash equivalents 17,729,092 Investments 9,426,520

Imprest funds 55,795 $ 336,141,907


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The deposits and investments of the City, excluding the pension trust funds, at December 31, 2014, are reflected in the financial statements as follows:

Government-wide Fiduciary FundsStatement of Statement of

Investment Type Net Position Net Position TotalCash and pooled investments $ 49,320,556 15,060,212 64,380,768 Investments 214,589,313 1,185,514 215,774,827 Restricted funds with trustee 27,155,612 - 27,155,612 Restricted investments 28,830,700 - 28,830,700

$ 319,896,181 16,245,726 336,141,907

(b) Deposits

Custodial credit risk is the risk that in the event of a bank failure, the City will not be able to recover its deposits. The City’s cash deposits are insured up to $250,000 by the FDIC per FDIC institution. The Public Fund Deposit Security Act, Nebraska Revised Statute 77-2398, requires banks to either provide a deposit guaranty bond or by depositing, pledging, or granting a security interest in a single pool of securities to secure repayment of the City’s funds in excess of FDIC insured amounts. As of December 31, 2014, the City had approximately $4,800,000 in uninsured deposits at one financial institution that were not supported by sufficient collateral. All of the City’s other deposits in excess of FDIC insurance limits at December 31, 2014, were collateralized with securities held by the City’s agent in the City’s name.

(c) City Investments

Investments are stated at fair value. City funds are invested in conformity with the Public Funds Deposit Security Act, Nebraska Revised Statute 77-2387. Allowable investments include, but are not limited to, the following: U.S. Government bonds, notes, treasury bills or notes; bonds or notes to U.S. Government agencies; municipal bonds, certain state and political subdivision bonds, and repurchase agreements. For a full listing of the allowable securities, please see the Nebraska Revised Statute 77-2387.

Custodial Credit Risk – Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s policy requires that all funds on deposit with any financial institution be secured with securities equal or greater than the deposit less any amount insured by the FDIC. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy also requires that all investment securities be held in the City’s name in the City’s safekeeping account in accordance with the Public Funds Deposit Security Act, Nebraska Revised Statute 77-2398.

Interest Rate Risk – Interest rate risk is the risk that the fair value of the City’s investments will decrease as a result of an increase in interest rates. As a means of limiting its exposure to


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fair value losses arising from rising interest rates, the City’s investment policy related to maturity is as follows: U.S. Treasury securities cannot exceed five years; zero-coupon or stripped coupon U.S. Treasury notes or bonds cannot exceed two years; certificates of deposit issued by commercial banks cannot exceed 30 months; and all other investments not mentioned above cannot exceed a five-year maturity from the date of purchase. An exception is that the funds on deposit in the Sewer Revenue Bond Reserve Account may be invested in investment securities maturing no later than 10 years from the date of such investment per bond covenants.

The City had the following maturities for pooled investments:

Less ThanInvestment Type Fair Value 1 year 1 - 5 Years 6 - 10 Years

U.S. Agencies $ 220,891,556 81,939,273 131,234,083 7,718,200 U.S. Treasuries 49,119 - 49,119 -

$ 220,940,675 81,939,273 131,283,202 7,718,200

Investment Term

The City had the following maturities for investments held by trustees:

Less ThanInvestment Type Fair Value 1 Year

U.S. Agencies $ 9,426,520 9,426,520

Investment Term

Credit Risk – Credit risk is the risk that the City will not recover its investments due to the inability of the counterparty to fulfill their obligation. State statute limits investment options to certain specific investment vehicles as noted above; however, there is no statutory requirement for investments to meet a certain quality rating.

The City’s pooled investments had the following credit ratings as of December 31, 2014:

QualityInvestment Issuer Fair Value Rating

U.S. AgenciesFNMA $ 34,026,397 AA+FHLMC 47,378,015 AA+FHLB 123,549,095 AA+FFCB 15,938,049 AA+

U.S. Treasuries 49,119 AA+$ 220,940,675


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The City’s investments with trustees had the following credit ratings as of December 31, 2014:

QualityInvestment Issuer Fair Value Rating

U.S. AgenciesFHLB $ 1,948,007 AA+FNMA 7,478,513 AA+

$ 9,426,520

Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment with a single issuer. State statute does not restrict the concentration of a City’s investments with any issuer. The City’s policy states that no more than 25% of the total portfolio will be invested in the issuance of any single institution other than securities of the U.S. government and its agencies.

The City’s pooled investments had the following concentrations by issuer as of December 31, 2014:

Investment type and issuer Fair Value PercentageU.S. Agencies

FNMA $ 34,026,397 15.40%FHLMC 47,378,015 21.44%FHLB 123,549,095 55.93%FFCB 15,938,049 7.21%

U.S. Treasuries 49,119 0.02%$ 220,940,675 100.00%


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The City’s investments held by trustees had the following concentrations by issuer as of December 31, 2014:

Investment type and issuer Fair Value PercentageU.S. Agencies

FHLB $ 1,948,007 20.67%FNMA 7,478,513 79.33%

$ 9,426,520 100.00%

Foreign Currency Risk – Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The City does not have a policy related to foreign currency risk and the City had no investments in foreign currencies as of December 31, 2014.

(d) Pension Trust Funds

The pension trust funds consist of two funds: the Civilian Plan and the Uniformed Plan. These pension programs operate in compliance with Omaha Municipal Code Chapter 22 and Nebraska State Statute 30-3209. City pension funds are invested according to a plan developed and reviewed quarterly by each plan’s Investment Committee. The plans define the purposes of the assets, identify the parties responsible for managing the investment process, establish both broad and specific guidelines for the investment of the fund’s assets, and establish criteria to monitor and evaluate the performance of the investment managers. The plans authorize investments in common and preferred stocks, corporate bonds, cash equivalent securities, certificates of deposits of insured institutions, money market funds, bank short-term investment funds, GICs, BICs, and government bonds. They can be in mutual funds or privately managed accounts.

Interest Rate Risk – The Pension Board of each plan with the recommendation from the respective Investment Committee, approves the fund manager agreements. These management agreements outline specific investment policies each manager must adhere to. The Pension Board of each plan adopted updated investment guidelines in 2013. These guidelines restrict amount of assets that can be invested in fixed income securities. The Uniformed Plan’s approved target range for fixed income securities is between 13% and 27% of the total portfolio value and the Civilian Plan’s approved target range for fixed income securities is between 13% and 28% of the total portfolio value. Fixed income securities are held in seven accounts managed by five managers: $137,186,635 in managed accounts and $25,348,158 in two bond mutual funds.


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Maturities of the securities in these commingled funds are as follows:

Less ThanInvestment Type Fair Value 1 Year 1 - 5 Years 6 - 10 Years 10+ Years

Comingled funds:U.S. Treasuries $ 8,751,374 1.5% 1.6% 1.3% 2.0%U.S. Agencies 8,309,586 0.1% 1.3% 3.2% 1.6%Municipal bonds 4,675,757 - 0.2% 1.2% 2.0%Corporate bonds 115,449,918 3.9% 33.0% 41.9% 5.3%

$ 137,186,635 5.5% 36.1% 47.6% 10.9%

Bond mutual funds: $ 25,348,158 1.7% 48.1% 50.2% -

Investment Term

Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will not be able to fulfill its obligations The Investment Committee of each plan monitors and selects the fund managers based on an investment policy that diversifies the plan’s risks. Each manager employs a varying type of investment style. The following table shows the quality ratings of the investment securities held by investment managers as of December 31, 2014.

Managed AccountsPercentage

Investment Type Ratings of TotalU.S. Treasuries AAA 6.4%U.S. agencies AAA/AA+ 7.4Municipal bonds AAA/A3 3.2Corporate bonds AAA/A3 16.8U.S. agencies BAA1/BBB 0.5Municipal bonds BAA1/BBB 0.2Corporate bonds BAA1/BBB 57.4U.S. agencies N/R 0.1Corporate bonds N/R 8.0

Bond Mutual FundsPercentage

Rating of TotalTSY/AGY 3.6%AAA/Aaa 3.7AA+/A3 1.5BBB/Ba2 80.0Caa 10.3N/R 0.1 Concentration of Credit Risk – Concentration of credit risk is the risk of the loss attributed to the magnitude of the pension plans investments with a single issuer. See footnote 10 for each pension plan’s target asset allocations by asset class and see the actual asset allocations as of December 31, 2014 for the pension plans in the table below. There are two domestic real estate securities and two international equity securities that have concentrations in excess of 5% of total pensions investments as of December 31, 2014 as disclosed in the following table.


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PercentageInvestment Type Fair Value Allocated

Government securities $ 18,369,069 2.22%Municipal issues 4,675,757 0.57%Corporate bonds 138,922,799 16.80%Domestic equities 250,730,822 30.32%International equities

Lazard 110,296,901 13.34%Dimensional fund advisors 51,062,606 6.17%

Domestic real estate securitiesPRISA 109,264,773 13.21%PRISA III 44,269,770 5.35%Other 14,944,340 1.81%

International real estate 2,591,180 0.31%Commodities 14,294,379 1.73%Private equity 35,474,383 4.29%Hedge funds 18,779,086 2.27%Cash and cash equivalents 13,324,497 1.61%

Total $ 827,000,362 100.00%

Foreign Currency Risk – The City is exposed to foreign currency risk related to international equities. Foreign currency risk is the risk that changes in exchange rates will adversely impact the fair value of an investment. The City does not have policy related to foreign currency risk. All international equities are denominated in U.S. dollars.

(4) Net Position/Fund Balances

The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted.

• Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvements of those assets or related debt also should be included in this component of net position. If there are significant unspent related debt proceeds at year end, the portion of the debt attributable to unspent proceeds is not included in the calculations of net investment in capital assets.

• Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

• Debt Service – This fund is restricted for resources for, and the payment of, general long-term debt principal, interest, and related costs.


December 31, 2014

55 (Continued)

• Other – These funds are restricted by external parties for various capital and non-capital projects including library supplies, infrastructure, federal grant projects, and others. The restricted amounts and categories are similar to those shown as restricted at the governmental fund level.

• Perpetual Care – These funds are used to report resources that are legally restricted to the extent that earnings, and not principal, may be used for purposes that support the City’s programs for the benefit of the City or its citizenry.

• Unrestricted Net position – This category represents net position of the City not restricted for any project or other purpose.

Under GASB Statement No. 54, the governmental funds report up to five categories of fund balance. Ranging from the most restrictive to the least restrictive, they are: nonspendable, restricted, committed, assigned, and unassigned.

• Nonspendable Fund Balances – Nonspendable fund balances are amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact.

• Restricted Fund Balances – Restricted fund balances represent amounts constrained by creditors, grantors, contributors or laws, and regulations of other governments, or limitations are imposed by law through constitutional provisions or enabling legislation.

• Committed Fund Balances – Committed funds can only be used for specific purposes pursuant to constraints imposed by the highest level of decision making, which is the City Council. Only the City Council, through an ordinance or resolution, can change any fund balance commitment. An ordinance and resolution are equally binding.

• Assigned Fund Balances – Assigned fund balances are intended for specific purposes. All assignments of contracts and purchase orders over $20,000 are approved by the City Council. A resolution passed by the City Council would explicitly state the specific purpose for the use of funds. For assignments below $20,000, the City Council has given the Finance Director the authority to assign fund balances to reflect the City’s intended use of resources.

• Unassigned Fund Balance – Unassigned fund balance is the residual classification for the general fund. In nonmajor governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance.


December 31, 2014

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Fund balances are classified as nonspendable, restricted, committed, assigned, or unassigned. The City generally spends its resources in the following order, unless special circumstances apply: restricted, committed, assigned and then unassigned. The following provides details of the aggregate amounts displayed on the face of the governmental funds balance sheet:

Nonmajor TotalDebt Governmental Governmental

General Service Funds FundsFund balances:

Nonspendable:Inventory $ 2,367,427 - - 2,367,427 Prepaids 22,961 - - 22,961 Land held for resale - - 498,899 498,899 Permanent principal - - 2,775,389 2,775,389

Total nonspendable 2,390,388 - 3,274,288 5,664,676

Restricted:General - - 10,912,914 10,912,914 Public safety

Police - - 2,518,670 2,518,670 Fire - - 596,228 596,228

Transportation - - 21,888,791 21,888,791 Other public services - - 89,534 89,534 Community development - - 2,626,162 2,626,162 Culture and parks 889,911 - 5,407,285 6,297,196 Debt service - 19,207,492 3,483,399 22,690,891

Total restricted 889,911 19,207,492 47,522,983 67,620,386

Committed:General - - 785,230 785,230 Other public services - - 9,231,286 9,231,286 Community development - - 937,561 937,561 Culture and parks - - 2,152,517 2,152,517

Total committed - - 13,106,594 13,106,594

Assigned:General 3,440,515 - 185,741 3,626,256 Public safety

Police 897,141 - - 897,141 Fire 92,842 - - 92,842

Transportation 184,818 - - 184,818 Community development 519,243 - 450,770 970,013 Culture and parks 259,047 - - 259,047 Other public services 4,147 - - 4,147

Total assigned 5,397,753 - 636,511 6,034,264

Unassigned 59,788,477 - (6,531,545) 53,256,932

Total all funds $ 68,466,529 19,207,492 58,008,831 145,682,852


December 31, 2014

57 (Continued)

(5) Reconciliation of Government-wide and Fund Financial Statements

(a) Explanation of Certain Differences between the Governmental Funds Balance Sheet and the Government-Wide Statement of Net Position

The governmental funds balance sheet includes a reconciliation between the total fund balance of the governmental funds and the total net position of the governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that, “Long-term liabilities, including bonds payable and pension obligations, are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this $1,279,712,807 difference are as follows:

Bonds payable $ 593,094,405 Less: issuance discounts (359,544) Plus: issuance premiums 44,679,585 Lease-purchase contracts payable 110,910,615 Notes payable 2,478,461 Contracts payable 8,491,500 Grants payable 13,378,500 Accrued interest payable 5,944,136 Workers' compensation and

healthcare claims 44,362,821 Net pension obligation 230,291,087 Net OPEB obligation 186,786,212 Claims and judgments payable 2,660,000 Compensated absences 69,018,007

Net difference $ 1,311,735,785

(b) Explanation of Certain Differences between the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities

Following the governmental funds statement of revenues, expenditures, and changes in fund balances there is a reconciliation between the net change in fund balances – total governmental funds and the change in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets, which exceeds the capitalization threshold, is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $(9,776,714) difference are as follows:

Capital outlay $ 31,685,137 Depreciation expense (41,461,851)

Net difference $ (9,776,714)

Another element of that reconciliation states, “The issuance of long-term debt (e.g., bonds, leases, etc.) provides current financial resources to governmental funds, where as the


December 31, 2014

58 (Continued)

repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are advanced and amortized in the statement of activities.” The details of this $(6,345,428) difference are as follows:

Debt issued or incurred:Issuance of long-term debt $ (110,239,002) Net premium/discount of issued debt (11,130,961)

Amortization of premiums/discounts 3,626,189 Principal repayments 53,990,500 Payments on contracts payable 984,000 Current refundings (defeased debt) 10,783,370 Advance refundings (defeased debt) 48,456,477


Another element of that reconciliation states, “Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.” The details of this ($36,063,543) difference are as follows:

Grants payable $ 2,435,250 Workers' compensation and

health claims (3,174,423) Claims and judgments payable (700,000) Net pension obligation (10,589,591) Postretirement benefits obligation (22,901,610) Accrued interest payable 576,404 Compensated absences (1,709,573)


(6) Special Assessment Note Payable

The City did not obtain a special assessment note payable in fiscal year 2014, as there were sufficient funds available to fund the current requirements in the special assessment fund for the purpose of meeting its obligations to contractors for work completed that will ultimately be assessed to the benefited property owners.


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59 (Continued)

(7) Bonds Payable and Other Long-Term Obligations

The following is a summary of long-term liability transactions for the year ended December 31, 2014:

Balances at Issuances Retirements Balances at Amount DueJanuary 1, or Other or Other December 31, Within One

2014 Additions Reductions 2014 Year

Governmental activities:Bonds payable:

General obligation bonds $ 485,310,000 70,235,000 68,045,000 487,500,000 40,810,000 Annexed general obligation

bonds 4,720,000 39,549,446 30,004,446 14,265,000 2,405,000 Special tax revenue bonds 37,450,000 - 2,765,000 34,685,000 2,175,000 Special obligation bonds 57,622,195 - 2,272,790 55,349,405 1,449,020 Revenue bonds 1,490,000 - 195,000 1,295,000 60,000 Unamortized premiums 37,192,585 11,130,961 3,643,961 44,679,585 - Unamortized discounts (378,860) - (19,316) (359,544) -

Total bonds payable 623,405,920 120,915,407 106,906,881 637,414,446 46,899,020

Lease-purchase contractspayable 116,627,255 320,000 6,036,640 110,910,615 6,207,398

Notes payable 2,802,073 133,012 456,624 2,478,461 441,715 Contracts payable 9,475,500 - 984,000 8,491,500 1,015,500 Grants payable 15,813,750 - 2,435,250 13,378,500 2,525,200 Compensated absences 67,308,434 1,709,573 - 69,018,007 4,969,297 Workers’ compensation and

healthcare claims 41,188,398 3,174,423 - 44,362,821 14,218,057 Claims and judgments payable 1,960,000 700,000 - 2,660,000 2,660,000 Net pension obligation 219,701,396 10,589,691 - 230,291,087 - Postretirement benefit obligation 163,884,602 22,901,610 - 186,786,212 -

Total governmentallong-term

liabilities 1,262,167,328 160,443,716 116,819,395 1,305,791,649 78,936,187

Business-type activities:Convention Center Hotel:

Revenue bonds 144,165,000 - 1,340,000 142,825,000 1,525,000 Unamortized premium 2,412,739 - 118,416 2,294,323 - Unamortized discount (225,245) - (8,354) (216,891) -

146,352,494 - 1,450,062 144,902,432 1,525,000


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60 (Continued)

Balances at Issuances Retirements Balances at Amount DueJanuary 1, or Other or Other December 31, Within One

2014 Additions Reductions 2014 Year

Parking Facilities Fund:Lease-purchase contracts

payable $ 33,805,000 - 2,700,000 31,105,000 2,810,000 Unamortized premium 15,653 - 3,089 12,564 - Unamortized discount (4,213) - (954) (3,259) - Compensated absences 34,623 - 952 33,671 2,424 Workers’ compensation and

healthcare claims 153,345 - 91,900 61,445 19,693 Net pension obligation 685,290 - 421,163 264,127 - Postretirement benefit

obligation 598,517 - 356,879 241,638 -

35,288,215 - 3,573,029 31,715,186 2,832,117

Sewer Revenue Fund:Revenue bonds 293,560,000 127,780,000 7,700,000 413,640,000 10,230,000 Unamortized premium 11,168,596 10,596,811 761,710 21,003,697 - Notes payable 12,863,051 450,000 603,104 12,709,947 633,121 Special obligation bonds 16,317,805 - 952,210 15,365,595 315,980 Unamortized premium 221,471 - 7,910 213,561 - Compensated absences 1,621,143 - 50,987 1,570,156 113,052 Workers’ compensation and

healthcare claims 1,883,949 332,773 - 2,216,722 710,448 Net pension obligation 8,852,627 1,038,364 - 9,890,991 - Postretirement benefit

obligation 7,731,691 1,317,146 - 9,048,837 -

354,220,333 141,515,094 10,075,921 485,659,506 12,002,601

Nonmajor enterprise activities:Lease-purchase contracts

payable 320,000 - 320,000 - - Unamortized premium 1,545 - 1,545 - - Compensated absences 360,501 40,303 62,802 338,002 24,335 Workers’ compensation and

healthcare claims 591,472 105,868 73,446 623,894 199,955 Net pension obligation 1,913,484 363,932 335,918 1,941,498 - Postretirement benefit

obligation 1,671,195 398,381 293,383 1,776,193 -

4,858,197 908,484 1,087,094 4,679,587 224,290

Total enterpriseactivities 540,719,239 142,423,578 16,186,106 666,956,711 16,584,008

Total all funds $ 1,802,886,567 302,867,294 133,005,501 1,972,748,360 95,520,195

Other long-term liabilities for governmental activities, including compensated absences, net pension obligation, and net OPEB obligation, are primarily liquidated in the General Fund.


December 31, 2014

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(a) Governmental Activities

Bonds payable at December 31, 2014 comprises the following individual issues:

General Obligation Bonds

Interest Rate First

Original Payable Series Date December 31,

Amount Issued Issue Semiannually Due Callable 2014

$ 205,875,000 04/01/04 G.O. – defeasance bonds 5.25% 2004 – 2027 2014 $ 179,195,000

42,800,000 11/15/05 Various purpose – refund

series 4.00% – 4.75% 2006 – 2025 2015 2,140,000


series 4.00% – 4.25% 2007 – 2026 2016 5,470,000


series 4.00% – 4.75% 2008 – 2027 2017 17,450,000

75,540,000 0'7/24/08 Various purpose – refund

series 3.75% – 5.00% 2009 – 2025 2018 47,200,000

17,880,000 10/30/08 G.O. – defeasance bonds 5.00% – 5.75% 2009 – 2028 2018 5,370,000


7,440,000 10/15/09 Various purpose 2.00% – 3.00% 2010 – 2017 none 2,790,000

11,160,000 10/15/09 Various purpose 4.229% – 5.721% 2018 – 2029 2019 11,160,000



8,500,000 11/18/10 Various purpose 0.70% – 5.00% 2011 – 2030 2020 6,800,000

13,310,000 10/13/11 Various purpose 1.25% – 5.00% 2012 – 2031 2020 11,310,000


27,170,000 10/12/12 Various purpose - refund

series 3.00% – 4.125% 2013 - 2032 2022 24,200,000

32,040,000 10/12/12 G.O. – defeasance bonds 3.00% – 4.00% 2013 - 2028 2022 31,300,000

24,970,000 09/26/13 Various purpose - refund

series 2.00% - 5.00% 2014-2033 2023 22,250,000

29,215,000 11/10/14 Various purpose - refumd

series 2.00% - 5.00% 2015-2034 2024 29,215,000

41,020,000 11/10/14 G.O. – defeasance bonds 1.25% - 4.10% 2015-2031 2024 41,020,000

Total general obligation bonds 487,500,000


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62 (Continued)

Annexed General Obligation Bonds

Interest Rate FirstOriginal Payable Series Date December 31,


$ 1,420,000 01/01/11 S.I.D. #354 1.15% – 4.00% 2012 - 2022 2016 $ 245,000

1,200,000 03/15/11 S.I.D. #244 1.50% – 4.10% 2013 - 2021 2016 235,000

1,740,000 01/15/11 S.I.D. #370 1.30% – 3.40% 2012 - 2019 2016 435,000

885,000 10/11/11 S.I.D. #416 1.10% – 3.50% 2012 - 2021 2016 665,000

185,000 02/15/13 S.I.D. #281 1.70% 2013 - 2020 2018 160,000

400,000 01/15/11 S.I.D. #301 1.45% -4.50% 2012 - 2025 2016 50,000

2,425,000 11/15/11 S.I.D. #365 1.25% - 4.80% 2012 - 2031 2016 195,000

1,085,000 12/15/10 S.I.D. #366 1.15% - 3.80% 2011 - 2021 2015 95,000

1,000,000 11/15/11 S.I.D. #373 1.10% - 3.95% 2012 - 2024 2016 125,000

1,150,000 05/15/13 S.I.D. #373 1.30% - 3.20% 2014 - 2025 2018 1,110,000

4,700,000 10/15/10 S.I.D. #376 1.15% - 4.00% 2011 - 2022 2015 350,000

2,425,000 04/15/13 S.I.D. #382 1.20% - 3.35% 2014 - 2028 2017 2,160,000

2,900,000 04/15/13 S.I.D. #397 1.30% - 2.70% 2014 - 2022 2018 2,750,000

2,160,000 11/01/10 S.I.D. #397 1.15% - 4.00% 2011 - 2022 2015 60,000

2,630,000 09/03/14 S.I.D. #398 1.05% - 3.65% 2015 - 2027 2019 2,630,000

500,000 12/15/10 S.I.D. #407 2.05% - 4.65% 2011 - 2027 2015 40,000

2,400,000 12/15/11 S.I.D. #407 1.70% - 4.60% 2012 - 2031 2016 145,000

2,165,000 05/01/10 S.I.D. #418 1.30% - 4.20% 2011 - 2020 2015 210,000

4,750,000 05/15/11 S.I.D. #422 1.35% - 5.45% 2012 - 2029 2016 430,000

1,100,000 04/15/12 S.I.D. #422 2.10% - 4.20% 2017 - 2032 2017 1,100,000

1,900,000 02/15/11 S.I.D. #436 1.50% - 5.50% 2012 - 2031 2016 145,000

1,000,000 12/01/12 S.I.D. #510 1.50% - 3.65% 2013 - 2027 2017 930,000

Total annexed general obligation bonds 14,265,000 Total general obligation and annexed area bonds $ 501,765,000


December 31, 2014

63 (Continued)

Governmental Activities – Special Tax Revenue Bonds

Interest Rate First



$ 1,095,000 12/20/07 Homeland Redevelopment

Project Series 2007A 4.00% – 4.25% 2007 – 2016 None $ 265,000

4,075,000 12/20/07 Various Projects

Redevelopment Series 2007 3.60% – 5.13% 2007 – 2027 2017 4,060,000

4,865,000 11/13/08 Special Tax Revenue

Redevelopment Series 2008 4.00% – 5.25% 2009 – 2028 2018 3,810,000


Redevelopment Taxable

Series 2009A (BAB) 1.159% – 6.022% 2010 – 2029 None 4,560,000


Refunding Series 2012 2.00% – 4.00% 2012 – 2018 None 1,805,000


Refunding Series 2012A 2.00% – 5.00% 2013 – 2032 None 8,400,000


Refunding Series 2012 2.00% – 4.00% 2015 – 2024 None 11,785,000

$ 34,685,000

Governmental Activities – Special Obligation Bonds

Interest Rate First



$ 38,535,000 03/25/08 Riverfront Redevelopment

Refund Series 2008 4.00% – 6.40% 2009 – 2026 None $ 34,730,000

23,152,065 03/01/12 Riverfront Redevelopment

Refund Series 2012 2.00% – 5.00% 2013 –2032 2022 20,619,405

$ 55,349,405

Governmental Activities – Revenue Bonds

Interest Rate First



$ 1,420,000 09/30/06 Highway Allocation 3.85% – 4.45% 2007 – 2026 2011 $ 1,295,000


December 31, 2014

64 (Continued)

(b) Business-Type Activities

Revenue bonds payable at December 31, 2014 comprises the following individual issues:

Business-Type Activities Revenue BondsInterest Rate First

Original Payable Series Date December 31,Amount Issued Issue Semiannually Due Callable 2014

$ 53,170,000 11/15/06 Sanitary Sewer SystemRevenue Bonds Series 2006 4.00% – 5.00% 2006 – 2036 2016 $ 45,760,000

109,750,000 05/15/07 Convention Center HotelRevenue, Series 2007A 4.00% – 5.00% 2010 – 2035 2017 105,825,000

37,000,000 12/15/10 Convention Center HotelRevenue, Series 2010B (BAB) 3.905% – 7.125% 2016 – 2040 2020 37,000,000

29,975,000 12/10/09 Sanitary Sewer SystemRevenue Series 2009B (BAB) 1.04% – 6.153% 2010 – 2039 2019 26,610,000

33,800,000 11/18/10 Sanitary Sewer System RefundingRevenue, Series 2010A 2.00% – 3.75% 2011 – 2026 2020 23,175,000

34,079,570 11/18/10 Sanitary Sewer SystemRevenue, Series 2010B (RZDB) 0.993% – 6.191% 2011 – 2040 2020 30,770,000

69,560,000 12/01/11 Sanitary Sewer SystemRevenue Series 2011 2.00% – 5.00% 2012 – 2041 2021 65,830,000

97,650,000 12/31/12 Sanitary Sewer SystemRevenue Series 2012 2.00% - 5.00% 2013 - 2042 2022 93,715,000

127,780,000 12/04/14 Sanitary Sewer SystemRevenue Series 2014 1.50% - 5.00% 2015-2044 2024 127,780,000

$ 556,465,000

Special Obligation Bonds - Business-Type Activities (Sewer Revenue Fund)Interest Rate First

Original Payable Series Date December 31,Amount Issued Issue Semiannually Due Callable 2014

$ 17,252,935 03/01/12 Riverfront RedevelopmentProject Series 2012 2.00% - 5.00% 2013 - 2032 2022 $ 15,365,595


December 31, 2014

65 (Continued)

As of December 31, 2014, the bonds payable debt service requirements of the City for principal and interest in future years are as follows:

Governmental ActivitiesPrincipal Interest Total

Year ending December 31:2015 $ 46,899,020 26,223,994 73,123,014 2016 47,492,615 24,440,688 71,933,303 2017 45,827,670 22,544,492 68,372,162 2018 44,605,000 20,602,851 65,207,851 2019 43,730,000 18,639,172 62,369,172 2020 - 2024 208,700,730 62,779,043 271,479,773 2025 - 2029 127,191,850 17,930,869 145,122,719 2030 - 2034 28,647,520 2,046,374 30,693,894

$ 593,094,405 195,207,483 788,301,888

Business-type ActivitiesPrincipal Interest Total

Year ending December 31:2015 $ 12,070,980 25,732,016 37,802,996 2016 12,967,385 25,618,232 38,585,617 2017 13,547,330 25,126,391 38,673,721 2018 13,820,000 24,608,056 38,428,056 2019 14,480,000 24,047,369 38,527,369 2020 - 2024 84,304,270 109,828,922 194,133,192 2025 - 2029 108,118,150 87,537,521 195,655,671 2030 - 2034 132,947,480 58,958,907 191,906,387 2035 - 2039 117,670,000 27,707,406 145,377,406 2040 - 2044 61,905,000 6,256,515 68,161,515

$ 571,830,595 415,421,335 987,251,930

General obligation bonds have been approved by the voters and issued by the City for various municipal improvements. These bonds represent indebtedness supported by the full faith and credit of the City.


December 31, 2014

66 (Continued)

(c) Notes Payable

Notes payable consist of a loan contract between the City and the U.S. Army Corps of Engineers and four loan contracts between the City and the Nebraska Department of Environmental Quality (NDEQ) with interest rates ranging from 1.34% to 2.25%. This also includes a loan contract between the City of Omaha and MECA with approximately $834,000 outstanding as of December 31, 2014. Maturities of the notes payable are as follows:

Governmental ActivitiesPrincipal Interest Total

Year ending December 31:2015 $ 494,366 92,143 586,509 2016 492,238 69,498 561,736 2017 340,170 63,750 403,920 2018 175,817 40,332 216,149 2019 181,974 34,175 216,149 2020 – 2024 793,896 70,702 864,598

$ 2,478,461 370,600 2,849,061

Business-type ActivitiesPrincipal Interest Total

Year ending December 31:2015 $ 633,121 228,390 861,511 2016 644,173 216,907 861,080 2017 655,425 205,215 860,640 2018 666,881 193,308 860,189 2019 678,546 181,183 859,729 2020 – 2024 3,575,257 716,110 4,291,367 2025 – 2029 3,900,414 377,776 4,278,190 2030 – 2034 1,956,130 53,470 2,009,600

$ 12,709,947 2,172,359 14,882,306

(d) Grants Payable

The City has entered into various agreements with not-for-profit organizations to provide grant funds as follows:

2015 $ 2,525,200 2016 2,520,100 2017 1,920,200 2018 2,025,800 2019 2,137,200 2020 – 2024 2,250,000

$ 13,378,500


December 31, 2014

67 (Continued)

(e) Tax Increment Financing Notes and Bonds

At December 31, 2014, $291,462,683 of tax increment financing notes and bonds were outstanding. Tax increment financing allows cities to create special districts and to make public/private improvements within those districts that will generate public/private-sector development. For a period of 15 years, the tax base is frozen at the predevelopment level, and taxes generated from the incremental increases in assessed value are remitted as payment on the notes and bonds. The loan agreements between the City and developer expressly limit the City’s commitment for debt repayment to the incremental tax collected during the 15-year period. At the end of the 15-year period, the tax jurisdiction collects on the increased property values. The related tax increment districts are not component units of the City; therefore, the City is not liable for the outstanding debt. The City’s responsibility for this liability is limited only to remittance of paid taxes.

(f) Debt Margin/Covenants

According to the City Charter, the total amount of general obligation indebtedness (including annexed area bonds) outstanding at any time, which shall include bonds issued, but shall not include bonds authorized until they are issued, shall not exceed 3.5% of the actual value of taxable real and personal property in the City. Debt margin as of December 31, 2014 is calculated as follows:

Debt limit $ 1,013,640,748 General obligation debt 501,765,000 Debt service fund balance 14,696,035

487,068,965 Debt margin $ 526,571,783

Revenue bonds and certain other long-term obligations are the obligation of specific enterprise funds and are payable solely from the revenues of the respective funds. Provisions in the revenue bond ordinances contain limitations and restrictions on annual debt service requirements, maintenance of and flow of moneys through various restricted accounts, and minimum amounts to be maintained in various accounts. It is management’s opinion the City is in compliance with all such significant provisions.

(g) In Substance Defeasance

On November 10, 2014, the City issued $41,020,000 of general obligation refunding bonds to provide resources to purchase investment securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments of $44,795,000 of general obligation bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the governmental activities column of the statement of net position. The reacquisition price exceeded the net carrying amount of the old debt by $3,661,477. This amount is being presented as a deferred outflow of resources and amortized over the shorter life of the refunded debt or new debt. This refunding was undertaken to reduce total debt service payments over the next 17 years by $4,535,232 and resulted in an economic gain of $3,928,508.


December 31, 2014

68 (Continued)

In prior years, the City defeased certain general obligation and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City’s financial statements. The amount of in substance defeased debt outstanding at December 31, 2014 is shown as follows:

General Obligation Bonds2000 Convention Center Series A $ 80,615,000 2006 Various Purpose & Refunding 4,925,000 2007 Various Purpose & Refunding 10,810,000 2008 G.O. Defeasance Bonds 7,145,000 2005 Various Purpose & Refunding 2005A 21,400,000

124,895,000General Obligation Bonds

S.I.D. #244 I 775,000 S.I.D. #300 S 325,000 S.I.D. #301 D 275,000 S.I.D. #354 850,000 S.I.D. #365 H 1,680,000 S.I.D. #365 I 2,055,000 S.I.D. #366 H 675,000 S.I.D. #370 F 690,000 S.I.D. #373 G 730,000 S.I.D. #376 K 3,175,000 S.I.D. #397 G 1,910,000 S.I.D. #407 E 315,000 S.I.D. #407 F 2,035,000 S.I.D. #418 C 1,160,000 S.I.D. #422 D 3,715,000 S.I.D. #436 C 1,550,000

21,915,000

Total general obligation and annexed area bonds 146,810,000

Lease Purchase Bonds2006 Rosenblatt Stadium 915,000 2007 Rosenblatt Stadium 360,000 2005 Park 4, 5 and 7 Refunding Series A 905,000

Total lease purchase bonds 2,180,000 Total $ 148,990,000


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(h) Current Refunding

On November 10, 2014, the City issued $10,090,000 of general obligation refunding bonds to provide resources to call and retire $10,990,000 of general obligation bonds. $5,195,000 of the general obligation bonds were called and retired on December 6, 2014 and the remainder in the amount of $5,795,000 were called and retired on December 10, 2014, resulting in a current refunding. As a result, the liability was removed from the governmental activities column of the statement of net position. The re-acquisition price exceeded the net carrying amount of the old debt by $206,630. This refunding was undertaken to reduce the total debt service payments over the next ten years by $1,051,401 and resulted in an economic gain of $1,043,411.

(8) Lease Purchase Contracts Payable and Contracts Payable

The City is leasing libraries and other facilities under noncancelable lease-purchase agreements expiring at various times through 2037, at which time title will be conveyed to the City. The net book value of leased assets is approximately $170.8 million. The rental payments are designed to equal the debt service requirements of certain nonprofit organizations that financed the construction of the facilities. The City has an option to purchase the facilities at any time by paying an amount equal to the total of all remaining unpaid lease obligations to the lessor at that time.

The following schedule reflects future minimum lease payments under the lease-purchase agreements and contracts payable together with the present value of the net minimum lease payments as of December 31, 2014:

Governmental Business-typeActivities Activities

Fiscal year ending:2015 $ 12,344,359 4,362,088 2016 10,053,709 3,660,869 2017 9,114,090 3,657,902 2018 9,155,700 3,660,293 2019 9,241,868 2,828,589 2020 – 2024 43,616,221 10,883,550 2025 – 2029 38,700,636 9,497,189 2030 – 2034 35,927,025 7,305,695 2035 – 2037 14,805,282 -

Total minimum lease payments 182,958,890 45,856,175 Less amount representing interest 63,556,775 14,751,175

Total principal obligation under capital leaseswith rates of interest from 1.50% to 6.516% $ 119,402,115 31,105,000

Included in contracts payable is the City’s lease for space in the Omaha Douglas Civic Center and the adjoining Hall of Justice under a lease that expires only upon payment of all outstanding bonds of the ODPBC. The annual rental payments are determined based upon actual space occupied by the City for operation and maintenance. Actual rental payments for 2014 were $1,820,520.


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(9) Receivables and Due From Other Governments

The City’s receivables and due from other governments amounts as of December 31, 2014 for the City’s major and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

Convention TotalTotal Center Parking Sewer Nonmajor Business-

Debt Governmental Governmental Hotel Facilities Revenue Enterprise typeGeneral Service Nonmajor Activities Fund Fund Fund Funds Activities Total

Receivables:Property taxes $ 74,873 56,671 8,488 140,032 - - - - - 140,032 Motor vehicle tax 1,002 - - 1,002 - - - - - 1,002 City sales and use tax 23,287 - - 23,287 - - - - - 23,287 Cable TV and gas franchise fee 1,456 - - 1,456 - - - - - 1,456 Telephone occupation tax 1,965 - - 1,965 - - - - - 1,965 Hotel motel occupation tax 517 - - 517 - - - - - 517 Vehicle rental occupation tax 701 - - 701 - - - - - 701 Restaurant Tax 3,397 - - 3,397 - - - - - 3,397 MUD & OPPD in lieu of tax 1,287 49 5 1,341 - - - - - 1,341 Library supplement - - 953 953 - - - - - 953

Lodging tax - - 832 832 - - - - - 832

Wheel tax - - 1,660 1,660 - - - - - 1,660

Highway allocation fees - - 3,428 3,428 - - - - - 3,428 Special assessment - 511 3,361 3,872 - - - - - 3,872

Grants - - 9,997 9,997 - - - - - 9,997 Charges for services and other 5,993 2,199 7,592 15,784 332 333 10,461 142 11,268 27,052

$ 114,478 59,430 36,316 210,224 332 333 10,461 142 11,268 221,492

Receivables and Due From O ther Governments (in Thousands)

As of December 31, 2014, the City has recorded an allowance of approximately $23,150,000 for uncollectible property taxes related to the past five levies.


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Governmental funds report unavailable revenues as deferred inflow of resources in connection with receivables for revenues not considered measurable and available to liquidate liabilities of the current period. Resources received in advance of all eligibility requirements being met, other than time restrictions, are reported as unearned revenue.

At December 31, 2014, the various components of unavailable revenue and unearned revenue are as follows:

Unavailable UnearnedProperty tax receivable (general fund) $ 68,635 41 Property tax receivable (debt service fund) 51,949 12 Property tax receivable (other governmental funds) 7,884 2 Special assessments (debt service fund) 486 - Special assessments (other governmental funds) 3,361 - Charges for services and other (general fund) 1,190 16 Charges for services and other (other governmental funds) 6,843 - Grants (other governmental funds) 8,031 4,297

$ 148,379 4,368

(in thousands)

(10) Employees’ Retirement Plans

Substantially all City employees are covered by one of two single-employer contributory defined benefit retirement plans: the City of Omaha Employees’ Retirement System (the Civilian Plan) and the City of Omaha Police and Firefighters Retirement System (the Uniformed Plan). These plans are accounted by the City as pension trust funds and the financial statements are prepared using the accrual basis of accounting. See discussion of the investment policies of the retirement plans in footnote 3.

(a) Civilian Plan

Plan Description –The Civilian Plan is a single-employer contributory defined benefit pension plan. All eligible City employees, except the following, are covered by the plan: police; firefighters; persons paid on a contractual or fee basis; seasonal, temporary, and part-time employees; and elected officials who do not make written application. Cost-of-living adjustments are provided to members and beneficiaries at the discretion of the City in accordance with plan provisions. A cost-of-living adjustment currently is provided for members who retired prior to January 28, 1998 after a five-year waiting period. The Pension Board of the City administers the Civilian Plan and the City Council is responsible for establishing or amending plan provisions through the labor agreements. The Pension Board is comprised of seven members as follows: the City Comptroller, the City Personnel Director, a City Council member, three members of the Civilian Plan, and a trustee, who is not a member of the Civilian Plan. The Civilian Plan does not issue separate financial statements.


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Plan Membership – Membership of the Civilian Plan consisted of the following as of December 31, 2014: Number of:

Active members 1,153 Service retirements 1,058 Surviving spouses and children 268 Disabled 76 Deferred vested 73

Total participants: 2,628

Benefit Provisions - The Civilian Plan provides retirement, disability, and death benefits to plan members and beneficiaries. Retirement benefits for members are calculated as 2.25% of the average final monthly compensation times years of credited service. Upon severance of employment by a member not eligible for retirement, a refund of such member’s accumulated contributions, including credited interest, will be paid. Average Final Monthly Compensation – The average final monthly compensation is equal to the member’s highest consecutive 26 pay periods of compensation during the final 130 pay periods of service as a member divided by 12. Retirement Age – A member is eligible to retire, with no reduction, after the age of 50 if their age plus service is equal to 80 or more. A member can also retire after age 55 and 5 years of service; however, the pension is reduced 8% for years prior to age 60. Disability Benefits – Members are eligible for disability benefits upon completion of five years of service. Disability benefits are 60% of final monthly compensation reduced by Social Security and workers’ compensation benefits. If the disability is service-related, payment for all medical, surgical, and hospital expenses incurred are covered. Death Benefits – Upon the death of an active or retired member, there are two types of beneficiary pensions paid out: spouse’s pension and/or children’s pension. The spouse’s pension is determined based on one of the following situations:

i. Death of an active member with five years of service or service-connected death and six months of service – A monthly pension equal to 75% of the member’s accrued pension is paid to the surviving spouse until death or remarriage.

ii. Death of a member eligible for retirement or death of a retired member - A monthly pension equal to 75% of the pension the member was receiving or was eligible to receive at the time of death until death or remarriage.


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The children’s pension benefit, as shown below, will be paid to the surviving children until age 18 or prior to death or marriage, except if that child is totally disabled. If the child is totally disabled, the full pension continues to be paid until the cessation of total disability or dependency for support, whichever occurs first.

Number of PercentageDependent of AccruedChildren Benefit

1 5%2 10%3 15%

4 or more 20%

The plan also pays out a lump sum death benefit of $5,000 at the time of the member’s death if the member has eligible dependents. If the member has no eligible dependents at the time of death, the accumulated member’s contributions less previous pension payments made (if any) plus $5,000 will be paid out in a lump sum death benefit to the member’s beneficiary. Supplemental Pension Benefit (COLA) – Retirees (including widows, widowers, and children), who retired before January 28, 1998, will receive a Cost of Living Adjustment (COLA) after five years equal to the lessor of 3% or $50 per month. The COLA is granted for the full remaining period that benefits are payable. Funding Policy – Effective January 1, 2012, Civilian Plan members are required to contribute, by payroll deduction, 10.075% of their annual covered salary and the City is required to contribute at a rate of 11.775% of annual covered salary. The contribution requirements of the plan members and the City are established by City Ordinance and determined by actuarial valuation and may be amended by the City Council. Administrative costs for management of the investment funds are financed through investment earnings. Other administrative costs of the Civilian Plan are paid by the City’s general fund. Plan member and employer contributions are recognized in the period in which the contributions are due and benefits are provided based on a percentage of the member’s final average compensation. Contributions to the Civilian Plan totaled $6,321,141 for the employees and $12,326,643 for the employer for the year ended December 31, 2014.


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Annual Pension Cost and Net Pension Obligation – The City’s annual pension cost and net pension obligation to the Civilian Plan for the year ended December 31, 2014 were as follows:

Annual required contribution $ 17,996,034 Interest on net pension obligation 4,858,628 Adjustment to annual required contribution (4,920,311)

Annual pension cost 17,934,351 Contributions made (12,326,643)

Increase in net pension obligation 5,607,708 Net pension obligation - beginning of year 60,732,854 Net pension obligation - end of year $ 66,340,562

The annual pension costs, the percentage of annual pension costs contributed, and the net pension obligation for fiscal years 2014, 2013, and 2012 are as follows:

AnnualPension Annual Percentage Net

Cost Pension of APC Pension(APC) Contributed Contributed Obligation

Fiscal year ended:12/31/2014 17,934,351$ 12,326,643$ 68.73 % 66,340,562$ 12/31/2013 17,647,381 7,194,482 40.77 60,732,854 12/31/2012 15,963,862 7,216,050 45.20 50,279,955

Schedule of Employer Contributions

Actuarial Methods and Assumptions – The annual required contribution for the current year was determined as part of the January 1, 2014 actuarial valuation using the following actuarial assumptions:

Actuarial cost method Entry age normalAmortization method Layered approach with level of percent of payroll,

closed periodsRemaining amortization period 18 to 20 years, depending on baseActuarial assumptions:

Inflation 3.25%, net of investment expensesProjected salary increases 4.00% to 10.00%Investment rate of return 8.00% per year

Funded Status and Funding Progress – As of January 1, 2014, the most recent actuarial date, the plan is 53.7% funded. The actuarial accrued liability for benefits was $442,754,113, and the actuarial value of the assets was $237,579,690, resulting in an unfunded actuarial accrued liability


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(UAAL) of $205,174,423. The covered payroll (annual payroll of active employees covered by the plan) was $63,413,206, and the ratio of the UAAL to the covered payroll was 323.6%. The Schedule of Funding Progress, presented as RSI following the Notes to the Financial Statements, presents multiyear trend information about whether the actuarial value of the plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Net Pension Liability – GASB Statement No. 67 requires the City to calculate and present the various components of the net pension liability, which includes different factors and assumptions than the UAAL shown above, which is determined in accordance with the provisions of GASB Statement No. 27. For its December 31, 2015 fiscal year-end, the City will implement the provisions of GASB Statement No. 68, which supersedes and replaces the requirements of Statement No. 27. Therefore, in future years, only the net position liability will be reported in the City’s financial statements and notes. The components of the net pension liability for the City’s Civilian Plan as of December 31, 2014 were as follows: Total pension liability 660,039,197$ Fiduciary net position (238,730,446) Net pension liability 421,308,751$

Ratio of fiduciary net position toTotal pension liability 36.17%

The total pension liability of the Civilian Plan was determined by an actuarial valuation as of January 1, 2014, rolled forward one year to December 31, 2014 (the measurement date), using the entry age normal cost method and calculated based on the discount and actuarial assumptions below. Actuarial Assumptions – The actuarial assumptions used in the valuation are based on the results of the most recent actuarial experience study dated September 17, 2013, which covered the five-year period ending December 31, 2011. As of the actuarial valuation on January 1, 2014, the inflation assumption was lowered from 3.50% to 3.25%. Mortality Rates – The pre-retirement mortality rates were based on the RP-2000 Employee Table (ages set forward 1 year) with generational mortality projections using Scale AA. The post-retirement mortality rates were based on the RP-2000 Healthy Annuitant Table (ages set forward 1 year) with generational mortality projections using Scale AA. The disabled mortality rates were based on the RP-2000 Disabled Retiree Table using generational mortality projections. Discount Rate – The discount rate (or single equivalent interest rate (SEIR)) used to measure the total pension liability as of December 31, 2014 was 4.49%. The Civilian Plan’s fiduciary net position was projected to be depleted in 2029 and, as a result, the municipal bond index rate was used in the determination of the discount rate. The municipal bond rate index was obtained from the Bond Buyers General Obligation 20-Year Municipal Bond Index published monthly by the Board of


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Governors’ of the Federal Reserve System. The long-term expected rate of return of 8.00% of investments was applied to periods before 2029 and the municipal bond index rate of 3.70% was applied to periods on and after 2029, resulting in a discount rate of 4.49% as of December 31, 2014. The prior measurement date (December 31, 2013) had a discount rate of 5.47% due to the municipal bond rate being 4.73%. The projected cash flows used to determine the discount rate assumed that plan contributions from members and the City will be made at the current contribution rates and were projected through the year 2114. Long-Term Rate of Return – The long-term expected rate of return on pension plan investments was reviewed as part of the regular experience study prepared for the Civilian Plan. The results of the most recent experience study were presented in a report dated September 17, 2013. Some of the factors used in evaluating the long-term rate of return assumption are as follows: long-term historical data, estimates inherent in current market data, and an analysis of best-estimate ranges of expected future real rates of return (expected returns, net of investment expenses and inflation) which, along with estimates of variability and correlations for each asset class, were developed by the Civilian Plan’s investment consultant. These ranges were combined to develop the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation and then adding expected inflation. The Civilian Plan’s investment consultant provides capital market assumptions for a thirty year period and was used in the actuary’s analysis. The target asset allocation and best estimates for the arithmetic real rate of return for each asset class, as provided by the Civilian Plan’s investment consultant, as of December 31, 2014 are as follows:

Long-termTarget Expected Real

Allocation Rate of Return

US large cap equities 10.0% 6.4%US mid cap equities 5.0% 6.8%US small cap equities 9.8% 7.6%International equities - developed markets 5.0% 6.7%International equities - small cap 7.5% 8.0%International equities - emerging markets 2.5% 9.0%Intermediate fixed income 10.5% 2.6%High yield bonds 10.0% 4.9%Private real estate 18.0% 4.9%Private equity 8.7% 9.9%Commodities 5.0% 6.4%Hedge funds 8.0% 2.9%

Total 100.0%

Asset Class

Rate of Return – For the year ended December 31, 2014, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 5.256%. The money rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.


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Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the Civilian Plan, calculated using the discount rate of 4.49%, as well as what the Civilian Plan’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.49%) or 1-percentage-point higher (5.49%) than the current rate:

Current1% Decrease Discount 1% Increase

(3.49%) Rate (4.49%) (5.49%)

Net Pension Liability 508,502,983$ 421,308,751$ 349,132,520$

Subsequent Event – Since the measurement date (December 31, 2014), there have been significant changes to the plan benefit and funding provisions, as a result of the settlement of certain labor agreements. The major changes include the following:

i. A reduction in the benefit multiplier for credited years of service from 2.25% to 1.90%.

ii. A change in the normal retirement age from the rule of 80 (age plus years of credited service equals or exceeds 80) or age 60 with 5 years of service to the rule of 85 or age 65 with 5 years of service. Certain special provisions apply if a member is within 5 or 10 years of normal retirement.

iii. A change in the calculation of the average final monthly compensation from the average of the

highest consecutive 26 pay periods of compensation during the final 130 pay periods of service to the average of the final 130 pay periods of service. If a member is within 5 years of normal retirement, it is based on the average of the highest consecutive 78 pay periods of compensation during the final 130 pay periods of service. The average final monthly compensation will not be lower than the current average final monthly salary at December 31, 2014.

iv. The disability benefit changed from 60% of the average final monthly compensation to years

of service times 1.50% for non-service related or 1.75% for service related disabilities times the average final monthly compensation.

v. The creation of a cash balance plan for new hires.

vi. To increase the City’s contribution rate from 11.775% to 17.775% in 2014 and 18.775% in

2015 and beyond.

These changes are not reflected in the actuarial study as of the measurement date as they were not formally approved and in effect at that time. Had the changes been reflected as of the measurement date, the fiduciary net position would no longer be projected to be depleted and the discount rate used would have been 8.00% instead of 4.49%. Based on the change in discount rate, the change in benefit provisions and the City’s funding plan, the total pension liability would decrease from $660,039,197 to $427,920,650 and the total net pension liability would decrease from $421,308,751


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to $189,190,204. The fiduciary net position would remain the same. This resulted in a ratio of fiduciary net position to total pension liability of 55.79% compared to the 36.17% disclosed above. Summary financial information for the Civilian Plan as of and for the year ended December 31, 2014 is as follows: Assets

Cash and cash equivalents $ 7,150,020 Due from other governments 28,871 Receivables:

Accounts receivable 1,130,595 Accrued interest 212,212

Investments 230,539,515 Total assets $ 239,061,213

LiabilitiesAccounts payable and other current liabilities $ 330,767

Net PositionNet position restricted for pensions 238,730,446

Total liabilities and net position $ 239,061,213

Additions

ContributionsEmployer $ 12,326,643 Employee 6,321,141

Total contributions 18,647,784 Investment income 6,306,426 Net appreciation in fair value of investments 6,070,127 Investment expense (1,318,321)

Net investment income 11,058,232 Total additions 29,706,016

DeductionsBenefit payments 31,318,384

Change in net position (1,612,368) Net position restricted for pensions, beginning of year 240,342,814 Net position restricted for pensions, end of year $ 238,730,446


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(b) Uniformed Plan

Plan Description –The Uniformed Plan is a single-employer contributory defined benefit pension plan. The Uniformed Plan covers all eligible probationary and regular sworn personnel of the police and fire departments of the City. Cost-of-living adjustments are provided to members and beneficiaries at the discretion of the City in accordance with plan provisions. A cost-of-living adjustment currently is provided to all members in accordance with plan provisions. The Pension Board of the City administers the Uniformed Plan and the City Council is responsible for establishing or amending plan provisions through the labor agreements. The Pension Board is comprised of 7 members as follows: the City Finance Director, the City Personnel Director, a City Council member, three members of the Uniformed Plan, and a trustee, who is not a member of the Uniformed Plan. The Uniformed Plan does not issue separate financial statements.

Plan Membership – Membership of the Uniformed Plan consisted of the following as of December 31, 2014.

Number of:Active members 1,370 DROP participants 51 Service retirements 974 Surviving spouses and children 303 Disabled 223 Deferred vested 10

Total participants: 2,931

Benefit Provisions – The Uniformed Plan provides retirement, disability, and death benefits to plan members and beneficiaries. The calculation of monthly retirement benefits for police and fire members is a specific percentage, ranging from 20% to 65% or 75%, of the member’s average final monthly compensation. The specific percentage depends on whether the member is a police or fire member, the member’s hire date, and the member’s age and years of service as of their retirement date. Upon severance of employment by a member not eligible for retirement, a refund of such member’s accumulated contributions, including credited interest, will be paid. Average Final Monthly Compensation

Fire – For members who were either a) age 45 with at least 25 years of service or b) age 50 with at least 20 years as of January 1, 2013, the average final monthly compensation is equal to the member’s highest consecutive 26 pay periods of compensation during the final 130 pay periods of service as a member divided by 12. For all others, the average final monthly compensation is equal to the member’s highest 78 pay periods of compensation during the final 130 pay periods of service as a member, divided by 36. For members who were hired before January 1, 2013, an adjustment is made to include a career average of overtime pay. For all others, overtime pay is excluded from their pensionable pay calculation.


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Police – For members hired before January 1, 2010, the average final monthly compensation is equal to the member’s highest consecutive 26 pay periods of compensation during the final 130 pay periods of service as a member divided by 12. For all others, the average final monthly compensation is equal to the member’s highest 78 pay periods of compensation during the final 130 pay periods of service as a member, divided by 36. For members who were hired before January 1, 2010, an adjustment is made to include a career average of overtime pay. For all others, overtime pay is excluded from their pensionable pay calculation.

Retirement Age

Fire – A member is eligible to retire, without reduction, if they were: a) age 55 with at least 10 years of service; b) age 50 with at least 20 years of service; or c) age 45 with at least 25 years of service if hired before January 1, 2013. Police – A member is eligible to retire if they were a) age 45 with at least 20 years of service if hired on or before January 1, 2010; b) age 50 with at least 20 years of service if hired after January 1, 2010; or c) age 55 with at least 10 years of service. If a member retires with less than 30 years of service a 7% reduction is applied for each year prior to age 55.

Disability Benefits – Members are eligible for disability benefits at any time. The monthly pension benefit is a specific percentage of the member’s average final monthly compensation. The monthly disability benefit of a member is determined based on the following situations:

i. Injury or illness of an active member in the line of duty with less than 20 years of service – The monthly pension benefit is equal to 50% of the member’s final average monthly compensation.

ii. Injury or illness of an active member in the line of duty with 20 or more years of service – The

monthly pension benefit is same as if the member took a normal service retirement, however, there is no 7% reduction for each year below the age of 55 years.

iii. Injury or illness of an active member not in the line of duty with less than 20 years of service –

The monthly pension benefit is a specific percentage, ranging from 10% to 30%, of the member’s final average monthly compensation.

iv. Injury or illness of an active member not in the line of duty with 20 or more years of service –

The monthly pension benefit is a specific percentage, ranging from 45% to 75%, of the member’s final average monthly compensation.

Pension payments for service-connected disability retirements shall be reduced by the dollar amount equivalent to any worker’s compensation benefits paid to the retirees times the percentage contributed to the Uniformed Plan by the City.


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Death Benefits – Upon the death of an active or retired member, there are two types of beneficiary pensions paid out: spouse’s pension and/or children’s pension. There is also a lump sum death benefit. The spouse’s pension, as long as the spouse was married to the deceased member for at least one full year prior to the member’s death, is determined based on one of the following situations:

i. Death of an active member in the line of duty with less than 25 years of service – A monthly pension equal to 49% of the member’s average final monthly compensation is paid to the surviving spouse until death or remarriage.

ii. Death of an active member in the line of duty with 25 or more years of service – A monthly

pension equal to 69% of the member’s average final monthly compensation is paid to the surviving spouse until death or remarriage.

iii. Death of an active member not in the line of duty with less than 25 years of service – A

monthly pension equal a specific percentage, ranging from 35% to 49%, of the member’s average final monthly compensation is to be paid to the surviving spouse until death or remarriage. The specific percentage is dependent upon the years of service at the time of the member’s death.

iv. Death of an active member not in the line of duty 25 or more years of service – A monthly

pension equal 69% of the member’s average final monthly compensation is to be paid to the surviving spouse until death or remarriage.

v. Death of a retired member - A monthly pension equal to 90% or 75% for fire or police,

respectively, of the pension the member was receiving or was eligible to receive at the time of death until death or remarriage if that member was hired before January 1, 2013 or January 1, 2010 for fire and police, respectively. For fire and police members hired after these dates, the benefit is 50% of the pension the member was receiving or was eligible to receive at the time of death until death or remarriage.

The benefits normally payable to the spouse shall be placed in a trust fund for the education of the child or children, if any, of the deceased member until such child or children attain age 18, marry, or die if the active member died as a result of injuries or illness sustained in the line of duty and any of the following apply: a) widow or widower was not legally married to the member for a full year, b) if the widow/widower should remarry after commencing benefits, or c) if the spouse of the deceased member predeceased him or her.


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The children’s pension benefit, as shown below, will be paid to the surviving children until age 18 or prior to death or marriage, except if that child is totally disabled. If the child is totally disabled, the full pension continues to be paid until the cessation of total disability or dependency for support whichever occurs first.

Number of PercentageDependent of Accrued

Children Benefit1 15%2 30%3 45%

4 or more 50% If the member has no eligible dependents at the time of death, the accumulated member’s contribution less previous pension payments made (if any) or $500, if greater, will be paid out in a lump sum death benefit. The lump sum death benefit for member with eligible dependents is paid at two points in time, which might coincide: immediately and at the time when there is only one remaining dependent. For an active member, an amount equal to one year’s salary computed on the basis of the maximum monthly rate for patrolmen and firefighters is payable immediately and the deceased member’s accumulated contributions less pension payments made to the member’s dependents is payable in a lump sum to the dependent who last ceases to receive pension benefits. For a retired member, $1,000 is payable immediately ($5,000 for fire retirements after June 30, 2005) and the excess over $1,000 ($5,000 for fire retirements after June 30, 2005), if any, of the deceased member’s accumulated contributions less pension payments made to the member’s dependents is payable in a lump sum to the dependent who last ceases to receive pension benefits. Supplemental Pension Benefit (COLA) – Retirees (including widows, widowers, and children) will receive a Cost of Living Adjustment (COLA) after one year (three years for police members who retired before March 6, 2003) equal to the lessor of 3% or $50 per month ($65 per month for fire retirements). The COLA is granted for the full remaining period that benefits are payable. Deferred Retirement Option Program (DROP) – The City has established a DROP for police and fire pension members as of the union contracts entered into in 2013 for fire members and 2011 for police members. The DROP allows a member to retire for pension purposes once they reach retirement eligibility, as long as they also meet the minimum age and/or years of service eligibility requirements for the DROP, but to continue working for three to five years. The member receives a paycheck and the member’s monthly pension benefit is deposited into the member’s DROP account. At the end of the elected drop period, which is a minimum of three years and a maximum of 5 years, the member must “retire-in-fact.” The member may withdraw, without penalty, from the DROP prior to the expiration of the member’s DROP election period due to a hardship, non-service connected disability, or a service connected disability with approval from the Pension Board. Contributions to the pension are eliminated at the beginning of the DROP period. Pension benefits are set and will not be increased because of raises, promotions, increased years of service, or pension enhancements. When a member retires-in-fact, their monthly pension benefit will be paid directly to them and the


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member will have access to the funds in their DROP account. The balance held by the third party DROP administrator at December 31, 2014, was $5,332,018. Funding Policy – Fire and police members are required to contribute by payroll deduction the following percentages of their total monthly salary and similarly the City is required to contribute at the following percentages for each member’s pensionable earnings for fire and police members.

EmployeeRate

Fire sworn 17.150% 32.965 %Fire management 17.230 33.170Police sworn 15.350 33.670Police management 16.350 33.170

City Bargaining Group Rate

The police management employee contribution rate is 15.350% for employees participating in the DROP program. In addition, the City shall make additional contributions of $1,327,600 annually through the year 2028. The contribution requirements of the plan members and the City are established by City Ordinance and determined by actuarial valuation and may be amended by the City Council. Administrative costs for management of the investment funds are financed through investment earnings. Other administrative costs of the Uniformed Plan are paid by the City’s general fund. Plan member and employer contributions are recognized in the period in which the contributions are due and benefits are provided based on a percentage of the member’s final average compensation and are recognized when due and payable. Contributions to the Uniformed Plan totaled $19,623,633 for the employees and $41,851,986 for the employer for the year ended December 31, 2014 Annual Pension Cost and Net Pension Obligation – The City’s annual pension cost and net pension obligation to the Uniformed Plan for the year ended December 31, 2014 were as follows: Annual required contribution 43,524,890$ Interest on net pension obligation 13,633,595 Adjustment to annual required contribution (9,679,301)

Annual pension cost 47,479,184 Contributions made (41,851,986)

Increase in net pension obligation 5,627,198 Net pension obligation - beginning of year 170,419,943 Net pension obligation - end of year 176,047,141$


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The annual pension costs, the percentage of annual pension costs contributed, and the net pension obligation for fiscal years 2014, 2013, and 2012 are as follows:

AnnualPension Annual Percentage Net

Cost Pension of APC Pension(APC) Contributed Contributed Obligation

Fiscal year ended:12/31/2014 47,479,184$ 41,851,896$ 88.15 % 176,047,141$ 12/31/2013 54,074,680 43,838,750 81.07 170,419,943 12/31/2012 55,663,357 35,302,037 63.42 160,184,013

Schedule of Employer Contributions

Actuarial Methods and Assumptions – The annual required contribution for the current year was determined as part of the January 1, 2014 actuarial valuation using the following actuarial assumptions. Actuarial cost method Entry age normalAmortization method Level percent of payroll, closedRemaining amortization period 30 years

Actuarial assumptions:Inflation 3.25%, net of investment expensesProjected salary increases 4.00% to 13.00%Investment rate of return 8.00% per year

Funded Status and Funding Progress – As of January 1, 2014, the most recent actuarial date, the plan is 46.8% funded. The actuarial accrued liability for benefits was $1,170,967,753, and the actuarial value of the assets was $548,360,223, resulting in an unfunded actuarial accrued liability (UAAL) of $622,607,530. The covered payroll (annual payroll of active employees covered by the plan) was $121,040,325, and the ratio of the UAAL to the covered payroll was 514.5%. The Schedule of Funding Progress, presented as RSI following the Notes to the Financial Statements, presents multiyear trend information about whether the actuarial value of the plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Net Pension Liability – GASB Statement No. 67 requires the City to calculate and present the various components of the net pension liability, which includes different factors and assumptions than the UAAL shown above, which is determined in accordance with the provisions of GASB Statement No. 27. For its December 31, 2015 fiscal year-end, the City will implement the provisions of GASB Statement No. 68, which supersedes and replaces the requirements of Statement No. 27. Therefore, in future years, only the net position liability will be reported in the City’s financial statements and notes.


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The components of the net pension liability for the City’s Uniformed Plan as of December 31, 2014 were as follows: Total pension liability 1,224,944,017$ Fiduciary net position (599,927,167) Net pension liability 625,016,850$

Ratio of fiduciary net position tototal pension liability 48.98%

The total pension liability of the Uniformed Plan was determined by an actuarial valuation as of January 1, 2014, rolled forward one year to December 31, 2014 (the measurement date), using the entry age normal cost method and calculated based on the discount and actuarial assumptions below. Actuarial Assumptions – The actuarial assumptions used in the valuation are based on the results of the most recent actuarial experience study dated September 17, 2013, which covered the five year period ending December 31, 2011. As of the actuarial valuation on January 1, 2014, separate salary increase assumptions were introduced for police and fire members. Mortality Rates – The pre-retirement mortality rates were based on the RP-2000 Employee Table (ages set forward 1 year) with generational mortality projections using Scale AA. The post-retirement mortality rates were based on the RP-2000 Healthy Annuitant Table (ages set forward 5 years) with generational mortality projections using Scale AA. The disabled mortality rates were based on the RP-2000 Disabled Retiree Table using generational mortality projections. Discount Rate – The discount rate (or single equivalent interest rate (SEIR)) used to measure the total pension liability as of December 31, 2014 was 8.00%. The prior measurement date (December 31, 2013) had a discount rate of 8.00%. The projected cash flows used to determine the discount rate assumed that plan contributions from members and the City will be made at the current contribution rates and were projected through the year 2114. Long-Term Rate of Return – The long-term expected rate of return on pension plan investments was reviewed as part of the regular experience study prepared for the Uniformed Plan. The results of the most recent experience study were presented in a report dated September 17, 2013. Some of the factors used in evaluating the long-term rate of return assumption are as follows: long-term historical data, estimates inherent in current market data, and an analysis of best-estimate ranges of expected future real rates of return (expected returns, net of investment expenses and inflation) which, along with estimates of variability and correlations for each asset class, were developed by the Uniformed Plan’s investment consultant. These ranges were combined to develop the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation and then adding expected inflation. The Uniformed Plan’s investment consultant provides capital market assumptions for a thirty year period and was used in the actuary’s analysis.


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The target asset allocation and best estimates for the arithmetic real rate of return for each asset class, as provided by the Uniformed Plan’s investment consultant, as of December 31, 2014 are as follows:

Long-termTarget Expected Real

Allocation Rate of ReturnUS large cap equities 16.0% 6.4%US small cap equities 12.0% 7.6%International equities - developed markets 7.0% 6.7%International equities - small cap 10.0% 8.0%International equities - emerging markets 10.0% 9.0%Intermediate fixed income 5.0% 2.6%High yield bonds 15.0% 4.9%Private real estate 13.5% 4.9%Timberland 3.5% 3.9%Commodities 3.0% 6.4%Private equity 5.0% 11.4%

Total 100.0%

Asset Class

Rate of Return – For the year ended December 31, 2014, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 4.939%. The money rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the Uniformed Plan, calculated using the discount rate of 8.00%, as well as what the Uniformed Plan’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (7.00%) or 1-percentage-point higher (9.00%) than the current rate:

Current1% Decrease Discount 1% Increase

(7.00%) Rate (8.00%) (9.00%)

Net Pension Liability 771,525,940$ 625,016,850$ 502,575,698$


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Summary financial information for the Uniformed Plan as of and for the year ended December 31, 2014 is as follows: Assets

Cash and cash equivalents $ 478,985 Receivables:

Accounts receivable 1,940,276 Accrued interest 1,854,916

Investments 596,460,847 Total assets $ 600,735,024

LiabilitiesAccounts payable and other current liabilities $ 807,856

Net PositionNet position restricted for pensions 599,927,168

Total liabilities and net position $ 600,735,024

AdditionsContributions

Employer $ 41,851,986 Employee 19,623,633

Total contributions 61,475,619 Investment income 16,103,040 Net appreciation in fair value of investments 12,391,755 Investment expense (2,966,034)

Net investment income 25,528,761 Total additions 87,004,380

DeductionsBenefit payments 66,571,864

Change in net position 20,432,516 Net position restricted for pensions, beginning of year 579,494,652 Net position restricted for pensions, end of year $ 599,927,168


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(c) Net Pension Obligation

Reconciliation of the December 31, 2014 net pension obligation to the financial statements is as follows:

Net pension obligationCivilian plan $ (66,340,562) Uniformed plan (176,047,141)

Total net pension obligation $ (242,387,703)

Recorded inGovernmental activities $ (230,291,087) Parking facilities enterprise fund (264,127) Sewer revenue enterprise fund (9,890,991) Nonmajor enterprise funds (1,941,498)

Total net pension obligation $ (242,387,703)


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(11) Capital Assets

Capital asset activity of governmental activities for the year ended December 31, 2014 is as follows:

Beginning EndingBalances Increases Decreases Balances

Governmental activities:Capital assets, not being

depreciated:Land $ 139,948,588 1,137,281 1,575,285 139,510,584 Cultural assets 5,841,990 11,306 - 5,853,296 Construction in progress 80,291,404 30,102,539 35,082,279 75,311,664

Total capital assets,not beingdepreciated 226,081,982 31,251,126 36,657,564 220,675,544

Capital assets, being depreciated:Buildings 566,820,908 21,982,547 8,991 588,794,464 Machinery and equipment 80,443,913 5,235,732 3,628,245 82,051,400 Infrastructure 794,079,114 58,192,944 - 852,272,058

Total capital assets,being depreciated 1,441,343,935 85,411,223 3,637,236 1,523,117,922

Less accumulated depreciation for:Buildings 243,180,052 19,294,438 - 262,474,490 Machinery and equipment 53,652,180 6,295,567 2,915,061 57,032,686 Infrastructure 237,076,688 41,437,526 - 278,514,214

Total accumulateddepreciation 533,908,920 67,027,531 2,915,061 598,021,390

Total capital assets,being depreciated, net 907,435,015 18,383,692 722,175 925,096,532

Governmental activitiescapital assets, net $ 1,133,516,997 49,634,818 37,379,739 1,145,772,076

Depreciation expense was charged to the following functions/program in 2014:

Governmental activities:General government $ 1,301,661 Public safety 4,205,472 Community development 985,248 Other public services 1,213,911 Culture and parks 17,435,781 Transportation services 16,319,778

Total depreciation expense – governmental $ 41,461,851


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Depreciation expense charged to the function/programs in 2014 is less than depreciation expense shown on the governmental activities capital asset activity table due to transfers and capital contributions in 2014.

Capital asset activity of each major enterprise fund for the year ended December 31 204 is as follows:


Convention Center Hotel Fund:Capital assets, not being

depreciated:Cultural assets $ 718,020 17,958 - 735,978

Capital assets, being depreciated:Buildings 91,512,249 238,376 - 91,750,625 Machinery and equipment 3,978,432 295,021 - 4,273,453 Furniture and fixtures 14,974,408 378,546 - 15,352,954

Total capital assets,being depreciated 110,465,089 911,943 - 111,377,032

Less accumulated depreciation for:Buildings 19,102,656 2,662,977 - 21,765,633 Machinery and equipment 3,524,836 218,634 - 3,743,470 Furniture and fixtures 7,592,647 2,887,799 - 10,480,446

Total accumulateddepreciation 30,220,139 5,769,410 - 35,989,549

Total capital assets,being depreciated, net 80,244,950 (4,857,467) - 75,387,483

Convention Center Hotel Fundcapital assets, net $ 80,962,970 (4,839,509) - 76,123,461

Parking Facilities Fund:Capital assets, not being

depreciated:Land $ 2,473,344 - - 2,473,344

Total capital assets,not being depreciated 2,473,344 - - 2,473,344

Capital assets, being depreciated:Leased buildings and buildings 61,363,255 - - 61,363,255 Machinery and equipment - 19,548

Total capital assets,being depreciated 61,363,255 19,548 - 61,382,803

Less accumulated depreciation for:Leased buildings and buildings 35,558,624 2,409,314 - 37,967,938 Machinery and equipment - 651 651

Total accumulateddepreciation 35,558,624 2,409,965 - 37,968,589

Total capital assets,being depreciated, net 25,804,631 (2,390,417) - 23,414,214

Parking Facilities Fundcapital assets, net $ 28,277,975 (2,390,417) - 25,887,558


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Sewer Revenue Fund:Capital assets, not being depreciated:

Land $ 2,721,046 - - 2,721,046 Construction in progress 120,529,185 112,934,428 77,550,112 155,913,501

Total capital assets,not being depreciated 123,250,231 112,934,428 77,550,112 158,634,547

Capital assets, being depreciated:Infrastructure 783,404,017 87,673,358 - 871,077,375 Buildings and systems 53,059,399 137,457 - 53,196,856 Machinery and equipment 10,159,513 705,710 88,865 10,776,358

Total capital assets,being depreciated 846,622,929 88,516,525 88,865 935,050,589

Less accumulated depreciation for:Infrastructure 307,601,016 26,181,674 - 333,782,690 Buildings and systems 39,094,283 1,087,870 - 40,182,153 Machinery and equipment 7,448,772 528,579 86,865 7,890,486

Total accumulated depreciation 354,144,071 27,798,123 86,865 381,855,329 Total capital assets,

being depreciated, net 492,478,858 60,718,402 - 553,197,260 Sewer Revenue Fund

capital assets, net $ 615,729,089 173,652,830 77,550,112 711,831,807

Depreciation expense recorded on the sewer revenue fund’s statement of net position for 2014 is lower than depreciation expense shown on the sewer revenue funds capital asset activity table above due to transfers and capital contributions in 2014.

Capital asset activity of the nonmajor enterprise fund for the year ended December 31, 2014 is as follows:


Nonmajor Enterprise Funds:Capital assets, not being depreciated:

Construction in progress $ 27,500 4,432 23,773 8,159 Capital assets, being depreciated:

Buildings and systems 9,228,130 - - 9,228,130 Machinery and equipment 2,946,441 183,647 1,083,468 2,046,620

Total capital assets,being depreciated 12,174,571 183,647 1,083,468 11,274,750

Less accumulated depreciation for:Building and systems 5,194,560 289,864 - 5,484,424 Machinery and equipment 2,429,725 61,365 723,829 1,767,261

Total accumulated depreciation 7,624,285 351,229 723,829 7,251,685 Nonmajor Enterprise Funds

capital assets, net $ 4,577,786 (163,150) 383,412 4,031,224

Interest incurred during the construction phase of capital assets of business-type activities is added to the cost of the underlying assets constructed and is depreciated over the useful lives of the assets. During


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2014, the Sewer Revenue Fund capitalized $5,215,860 in interest costs related to its major construction projects incurred during 2014.

(12) Fund Deficits

Fund deficits exist in the following funds as of December 31, 2014:

Major Enterprise Funds: Convention Center Hotel $ (45,887,031) Parking Facilities (4,306,023)

Nonmajor Special Revenue Funds:Library Fines and Fees (75,301) Douglas County Library Supplement (734,894) Community Park Development (1,606,308) Grants (1,293,104) Household Chemical Disposal (115,286)

Nonmajor Capital Projects Funds:2010 Public Facilities Bond (191,205) Missouri River Pedestrian Bridge (40,000)

Nonmajor Enterprise Funds:Golf Operations (3,407,770) Air Quality (101,928)

(a) Major Enterprise Funds

The Convention Center Hotel began operations in April 2004. The City projects that future operations of the hotel will eliminate this deficit. An addition of 150 rooms, a junior ballroom, and additional meeting space were completed in 2012 and are expected to generate additional revenue to reduce the deficit. Several national-profile events have been secured for the adjoining Century-Link Center providing increased revenue stability. Annual appropriations from the City will subsidize any debt service shortfall.

The Parking Facilities Fund was established as a tool to manage the City’s eight parking structures and various surface lots throughout the City. Lease-purchase debt has been issued to finance the construction of the parking structures. The City recently completed a comprehensive parking study. Among the recommendations implemented to date are: the consolidation of all parking functions under one department – Public Works and the installation of new parking meters that accept both credit cards and coins. Under consideration are changes to parking fees, increased hours of enforcement, and review of vendor and leasing contracts. The City has also hired a full-time parking facilities manager to oversee all parking operations. Annual appropriations from the City’s General Fund to subsidize the payment of this debt will eliminate this deficit.


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(b) Nonmajor Special Revenue Funds

The Community Park Development Fund’s deficit is a result of the acquisition of two large land purchases. These sites are outside of the City and have been selected as future regional parks. A park development fee has been established, which will be collected from neighboring Sanitary Improvement Districts to fund these acquisitions. The other Nonmajor Special Revenue Fund deficits will be eliminated upon collection of unavailable revenues from the sponsoring grantor agency or reduction of expenses.

(c) Nonmajor Capital Funds

The deficit in the 2010 Public Facilities Bond Fund will be eliminated with the issuance of bonds in 2015. The deficit in the Missouri River Pedestrian Bridge Fund will be eliminated by the receipt of unavailable revenues.

(d) Nonmajor Enterprise Funds

The deficits in the Golf Operations and Air Quality Funds will be eliminated by fee increases and reduction of expenses.

(13) Postretirement Healthcare Benefits

(a) Plan Description

The City sponsors a single-employer, defined benefit healthcare plan that provides certain postemployment healthcare benefits to eligible retirees and their dependents up to age 65 when they would be Medicare eligible in accordance with provisions established in Chapter 23 of the Omaha Municipal Code. The benefits include medical and prescription coverage. The rates paid by retirees are substantially lower than they would be under individual health insurance policies. This difference is an implicit rate subsidy and considered other post-employment benefits (OPEB). The plan is administered by the City. The plan does not issue separate financial statements.

(b) Funding Policy

The contribution requirements of plan members and the City are established through labor negotiations, with the Omaha Police Union Local No. 101, the Professional Firefighters Association of Omaha Local No. 385, the Omaha City Employees Local No. 251, and other classified civilian and sworn employees. All agreements are approved and can be amended by the City Council. Contributions are made to the plan based on a pay-as-you-go basis and the City self-insures this benefit. For the year ended December 31, 2014, the City paid $15,379,691 for 882 retirees. Retiree contribution rates vary from 0% to 10% of an annual estimated premium depending on the bargaining group. Retiree contributions for 2014 were $710,403.

(c) Annual OPEB Cost and Net OPEB Obligation

The City’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoing


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basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The amortization method used is the level percentage of projected payroll and the periods used on closed. The remaining amortization period is 23 years. The unit-credit-actuarial-cost method is used. The following table shows the components of the City’s annual OPEB costs for the year, the amount actually contributed to the plan, and the changes in the City’s net OPEB obligation:

Normal cost $ 23,462,056 Amortization of unfunded actuarial accrued liability 18,432,015 Interest on net OPEB obligation 5,216,580 Adjustments to annual required obligation (7,764,085)

Annual OPEB cost 39,346,566 Contributions made by employer (15,379,691)

Increase in net OPEB obligation 23,966,875 Net OPEB obligation, beginning of year (173,886,005) Net OPEB obligation, end of year $ (197,852,880)

The net OPEB cost is allocated to governmental activities, parking facilities enterprise fund, sewer revenue enterprise fund, and other nonmajor enterprise funds based on 2014 compensation expense, as follows:

Governmental activities $ (186,786,212) Parking facilities fund (241,638) Sewer revenue fund (9,048,837) Nonmajor enterprise funds (1,776,193)

Total OPEB obligation $ (197,852,880)

The annual OPEB costs, the percentage of annual OPEB cost contributed, and the net OPEB obligation for 2014, 2013, and 2012 are as follows:

Percentage ofAnnual OPEB Annual OPEB

Cost Contributed Net OPEBFiscal year ended:

2014 $ 39,346,566 39% $ (197,852,880) 2013 43,891,315 34 (173,886,005) 2012 44,454,512 35 (144,918,982)


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(d) Funded Status and Funding Progress

The funded status of the plan as of January 1, 2014 is as follows:

Actuarial accrued liability (AAL) $ 400,783,581 Actuarial value of plan assets -

Unfunded actuarial accrued liability (UAAL) $ 400,783,581

Funded ratio 0%Covered payroll $ 179,300,000 UAAL as a percentage of covered payroll 224%

(e) Actuarial Methods and Assumptions

Actuarial valuations on an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information, which shows the actuarial liability as a percentage of covered payroll.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan member to that point. In the January 1, 2014 actuarial valuation, the unit-credit-actuarial-cost method was used. The actuarial assumptions included a 3% projected investment rate of return, a payroll growth rate of 2.75%, and an annual healthcare cost trend of 6.00% during 2014, reduced to an ultimate rate of 4.40% after 80 years, with a maximum rate of 6.40%. Both rates include an inflation assumption. The amortization of the unfunded actuarial accrued liability is calculated assuming 23 annual payments increasing at 2.75% per year. The amortization method used is the level percentage of projected payroll method and the amortization period is a closed 30-year period beginning in 2007.

(14) Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City is self-insured with respect to its obligation to provide workers’ compensation, general liability, property damage, unemployment benefits, health and dental coverage, environmental, and antitrust.

The City sets aside assets for claim settlements in the general and individual proprietary funds. These funds service all claims for the risk of loss to which the City is exposed including general liability, property, and casualty up to $100,000 per occurrence. The City also services claims including workers’ compensation, employee health and dental, environmental, and antitrust, which are subject to unlimited liability by the City.


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The City maintains a Judgment Fund for the purpose of accumulating funds to satisfy judgments, damage claims, and related litigation expenses against the City. It is sustained by an unlimited tax levy upon tangible property within the City.

The City obtains an annual funding valuation from a claims servicing company managing the appropriate level of estimated claims liability for workers’ compensation claims. Liabilities are reported when it is probable that a loss can be reasonably estimated. Liabilities are based on historical losses paid.

The City maintains a blanket surety bond covering all City employees, including those of the city clerk’s office and the public libraries, in the amount of $201,000.

The City purchases commercial insurance for property damage of City buildings and contents in excess of $100,000. Settled claims have never exceeded this commercial coverage.

The City purchases commercial insurance for aviation liability for the police aviation unit, in the amount of $1,000,000 per person and $5,000,000 per occurrence for personal injury. Settled claims have never exceeded this commercial coverage.

Changes in the balance of claims liabilities during the fiscal years 2014 and 2013 for workers’ compensation and employee health and dental are as follows:

Beginning Current Endof Year Year Claim of YearLiability Claims Payments Liability

2014 $ 43,817,164 48,427,643 44,979,925 47,264,882 2013 41,151,606 58,590,477 55,924,919 43,817,164

Reconciliation of the December 31, 2014 claims liability for workers’ compensation and employee health and dental to the financial statements is as follows:

Governmental activities $ 44,362,821 Parking facilities fund 61,445 Sewer revenue fund 2,216,722 Nonmajor enterprise funds 623,894

Total workers' compensation and employee health and dental $ 47,264,882

(15) Commitments and Contingencies

(a) Judgment Claims

The City is a defendant in a number of lawsuits in its normal course of operations. In addition to the $2,660,000 recorded by the City as claims and judgments payable, the City Attorney is of the opinion that there is a possibility that the City will incur additional losses on various lawsuits of approximately $5,785,000.


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(b) Grants

The City participates in a number of federally assisted grant programs, principally Federal Highway Construction Grants, HUD Grants, Office of Justice Prevention Grants, Homeland Security, Department of Energy and Department of Transportation Grants, and other local improvement programs. The programs are subject to financial and compliance audits. The amount of expenditures, if any that may be disallowed by granting agencies is not determinable at this time; however, City management does not believe that such amounts, if any, would be significant.

(c) Encumbrances

An encumbrance is the commitment of appropriated funds to purchase goods or services to be delivered or performed at a future date. On a budget basis, an encumbrance is a reserve of fund balance. The encumbrances are generally in a requisition form before the end of the budget year. The purchasing process must be initiated before year-end. The encumbrances do not lapse at year-end. Department heads are authorized to make or approve encumbrances in their respective departments. Contracts or purchase orders over $20,000 are approved by the City Council. Encumbrances are included in restricted, committed, assigned, or unassigned fund balances as appropriate. The City’s encumbrances as of December 31, 2014 by fund type are as follows:

Governmental funds:General $ 6,287,665 Special revenue 10,852,681 Capital projects 16,999,557

Total encumbrances $ 34,139,903

(d) Construction Commitments

The City has various construction projects. The sewer revenue enterprise fund accounts for construction proceeds from bond issuance, income from sewer service charges, construction grants and related expenditures for operation, maintenance and capital improvements of the sanitary sewer system and wastewater treatment plants. The City’s obligation under these construction commitments was $154,819,865 as of December 31, 2014.

City Of Omaha, Nebraska

Notes to Basic Financial Statements

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(16) Pledged Revenues

The City has pledged specific revenues streams to secure the repayment of certain outstanding debt issues. The following table lists those revenues and the corresponding debt issue along with the purpose of the debt, the amount and term of the pledge remaining, the current fiscal year principal and interest on the debt, the amount of pledged revenue recognized during the current fiscal year, and the approximate percentage of the revenue stream that has been committed if estimable:

Principaland Interest Recognized

Percentage for the for the YearAmount of of Year Ended EndedRevenue Term of Revenue December 31, December 31,

Issue Type Revenue Pledged Pledged General Purpose for Debt Commitment Pledged 2014 2014Special tax revenue Community redevelopment $ 51,030,255 To finance infrastructure Through 2032 100% $ 4,205,558 4,263,934

redevelopment (series 2007A, 2007C, property tax and capital improvements2008, 2008, 2009A taxable, 2012, in redevelopment areas2012A, 2012B) throughout the City

Special obligation Cigarette tax, TIF revenues, 110,185,161 To finance infrastructure Through 2032 Various 6,742,776 148,044,020 (series Riverfront 2008 refunding, sewer revenue, land sales, and capital improvements2012 refunding) and sales tax in the Riverfront Business

ParkHighway allocation Street and highway 1,979,915 To finance street Through 2026 100% 255,305 37,673,381

(series 2006) gasoline taxes improvementsConvention Center Hotel Net operating revenue of 266,507,588 To finance the construction Through 2040 100% 8,860,504 12,652,552

(series 2007A, 2010B taxable) the hotel of the ConventionCenter Hotel

Sanitary sewer system Operating revenue of the 742,801,668 To finance the construction Through 2044 100% 21,173,188 107,916,387 (series 2006,2009B taxable, sanitary sewer system and rehabilitation of the2010A Refunding, 2010 B taxable, sanitary sewer system2011, 2012, 2014)NE Department of Environmental Quality(series C317432, C317476,C317734)



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(17) Subsequent Events

The City of Omaha has entered into a $55,000,000 loan agreement with the Nebraska Department of Environmental Quality (NDEQ), of which only $450,000 has been drawn down as of December 31, 2014. As of July 28, 2015, the City has drawn down approximately $36,100,000 of additional funds on this NDEQ loan.

(18) Discretely Presented Component Units

(a) Investments

As of June 30, 2014, the investment balances of Metropolitan Entertainment & Convention Authority (MECA), a discretely presented component unit, are as follows:

Investment Maturities Credit Rating Fair ValueCertificates of deposit 8/15/14-11/27/15 100% FDIC Insured $ 2,600,000 Commercial paper 7/3/14 - 12/30/14 S&P-A1 and Moody's P1 3,347,741 U.S. Treasury securities 4/30/15 - 8/15/15 N/A 2,003,023 Government agency

discount notes 12/15/14 - 2/12/16 N/A 3,500,841

Total investments $ 11,451,605

Heartland Workforce Solutions, Inc. (HWS), a discretely presented component unit, had no investments at June 30, 2014.

(b) Capital Assets

Activity for the year ended June 30, 2014 for MECA’s property, equipment, and intangible assets and accumulated depreciation and amortization is as follows:

Additions & July 1, 2013 Reclassifications Dispositions June 30, 2014

Leasehold improvements $ 8,828,143 7,461,316 - 16,289,459 Furniture, fixtures, and

equipment 12,195,572 2,548,611 (1,226,426) 13,517,757 Building rights 10,079,196 - - 10,079,196 Construction in progress 1,181,454 (1,155,823) - 25,631

32,284,365 8,854,104 (1,226,426) 39,912,043 Accumulated depreciation

and amortization (14,851,265) (2,764,352) 853,196 (16,762,421) Total $ 17,433,100 6,089,752 (373,230) 23,149,622

Heartland Workforce Solutions, Inc. had $233,780 in capital assets, net of accumulated depreciation as of June 30, 2014. These capital assets consisted of furniture and fixtures and leasehold improvements.



December 31, 2014

100

(c) Notes Payable

Activity for the year ended June 30, 2014 for MECA’s long-term debt activity is as follows:

Balance Balance,June 30, 2013 Additions Reductions June 30, 2014

City of Omaha $ 2,805,836 - (675,946) 2,129,890

Heartland Workforce Solutions, Inc. had $81,071 in long-term debt as of June 30, 2014.

Through the amended agreement and lease with the City, MECA agreed to exercise good faith and best efforts to raise and pay over to the City the sum of $14,000,000 to offset additional funds provided by the City for the construction of the facility. Proceeds from the sale of Naming Rights were specifically identified as a source of repayment. The Naming Rights have been sold to an outside party under a Convention Center/Arena Naming Rights Agreement, which terminates on September 1, 2018. As a result, the obligation for the repayment of this portion of the construction funds has been recorded as long-term debt payable to the City offset by recording intangible Building Rights.

Debt service payments for MECA are as follows:

Principal InterestYear:

2015 $ 575,946 149,054 2016 575,946 149,054 2017 575,946 149,054 2018 402,052 173,895

$ 2,129,890 621,057

(d) Commitments and Contingencies

MECA renewed the long-term contract for food service operations for CenturyLink Center Omaha in July of 2013. The terms of the contract commit MECA to a ten-year CPI indexed annual payment to the contractor of $250,000. The annual payment made as of June 30, 2014 was $250,000. There are incentive provisions in the contract that may result in additional payments to the contractor, capped at $62,500 per contract year. Such incentives totaled $62,500 for the year ended June 30, 2014. The remaining costs of such commitments as of June 30, 2014 are nine annual payments of $250,000 subject to increases in accordance with a CPI index.

MECA entered into a five-year contract for food service operations for TD Ameritrade Park Omaha in June 2010. The terms of the contract commit MECA to a five-year CPI indexed annual payment to the contractor of $79,462 for the year ended June 30 2014. There are incentive provisions in the contract that may result in additional payments to the contractor. Such incentives totaled $9,846 for the year ended June 30, 2014. The remaining costs of such commitments under this contract as of



December 31, 2014

101

June 30, 2014 are two annual payments of $75,000 subject to increases in accordance with a CPI index.

MECA renewed the long-term contract for food service operations for TD Ameritrade Park Omaha in July of 2013. The contract term for this renewal is from February 1, 2014 until June 30, 2023. The terms of the contract commit MECA to a ten-year CPI indexed annual payment to the contractor of $75,000. There are incentive provisions in the contract that may result in additional payments to the contractor capped at $18,750 per contract year, subject to CPI indexing. The remaining costs of such commitments as of June 30, 2014 are ten annual payments of $75,000 subject to increases in accordance with a CPI index.

REQUIRED SUPPLEMENTARY INFORMATION (Unaudited)


Budgetary Comparison Schedule – General Fund – Budgetary Basis

(Unaudited)


102

See accompanying notes to budgetary comparison schedule – general fund

Variance withfinal budget

Budgeted amounts positiveOriginal Final Actual (negative)

Revenues:Property tax $ 79,086,084 79,086,084 78,527,924 (558,160) Motor vehicle taxes 9,750,000 9,750,000 10,338,405 588,405 City sales and use tax 135,404,522 135,404,522 142,758,561 7,354,039 Business taxes 22,967,694 22,967,694 20,341,736 (2,625,958) Taxes in lieu 4,690,000 4,690,000 5,446,044 756,044 Licenses and permits 8,365,000 8,365,000 9,165,909 800,909 Intergovernmental revenues - - - - Charges for services 24,789,609 24,789,609 24,404,043 (385,566) Revenue for KENO 565,000 565,000 592,073 27,073 Interest income 800,000 800,000 1,115,342 315,342 Rent and royalties 999,000 999,000 1,103,450 104,450 Miscellaneous - - 1,015,207 1,015,207 Restaurant Tax 27,677,874 27,677,874 26,999,949 (677,925) Business Usage 12,463,549 12,463,549 12,269,668 (193,881) Tobacco Tax 3,750,000 3,750,000 3,711,132 (38,868)

Total revenues 331,308,332 331,308,332 337,789,443 6,481,111 Expenditures:

General government:Mayor’s office 1,039,725 1,107,191 1,100,207 6,984 City clerks 655,154 695,801 667,588 28,213 City council 1,160,612 1,214,809 1,055,147 159,662 Law 3,743,387 3,984,144 3,730,320 253,824 Human Resources 2,262,134 2,368,635 2,133,259 235,376 Human Rights and Relations 452,993 484,892 468,048 16,844 Finance 3,472,178 3,685,590 3,468,794 216,796 Planning 7,481,055 8,061,923 7,376,365 685,558 Employee benefits 21,804,823 21,804,823 20,222,737 1,582,086 Other agencies 29,176,915 26,073,362 23,483,434 2,589,928 Other accounts 6,222,895 6,222,895 6,415,904 (193,009)

Total general government 77,471,871 75,704,065 70,121,803 5,582,262 Public safety:

Fire 90,615,765 90,720,269 91,652,766 (932,497) Police 124,298,437 124,983,924 121,798,535 3,185,389

Total public safety 214,914,202 215,704,193 213,451,301 2,252,892 Public works:

Environmental 17,921,440 17,903,501 17,774,906 128,595 Street and highway 871,159 751,462 1,240,749 (489,287)

Total public works 18,792,599 18,654,963 19,015,655 (360,692) Culture and recreation:

Parks and recreation 18,625,727 19,256,218 19,721,662 (465,444) GOCVB 400,000 400,000 400,000 - Libraries 10,464,250 10,949,210 10,799,160 150,050

Total culture and recreation 29,489,977 30,605,428 30,920,822 (315,394) Total expenditures 340,668,649 340,668,649 333,509,581 (7,159,068) (Deficiency) excess of revenues over expenditures (9,360,317) (9,360,317) 4,279,862 13,640,179 Net changes in fund balances (9,360,317) (9,360,317) 4,279,862 13,640,179

Fund balances, beginning of year - - 21,243,929 21,243,929 Lapsed encumbrances - - 153,957 153,957 Transfers out - - (4,794,136) (4,794,136)

Fund balances, end of year $ (9,360,317) (9,360,317) 20,883,612 30,243,929


Notes to Budgetary Comparison Schedule – General Fund

(Unaudited)


103 (Continued)

(1) Budget and Budgetary Accounting

The Mayor is required by the City Charter to prepare and submit an annual budget to the City Council. A budget is prepared for the general fund and all special revenue funds, exclusive of all grant funds and the service-type special assessments fund. These budgets are prepared primarily on a cash basis for revenues and modified accrual basis for expenditures. The budget presented reflects the original budget and the revised budget prior to the closing ordinance. In addition, encumbrances are reported as expenditures for budgetary purposes. Under this system, purchase orders, contracts, and other commitments for the expenditure of funds are recorded as encumbrances in order to reserve a portion of the applicable appropriation.

Throughout the year, budgetary monitoring, to ensure compliance with the City Council approved budget, is perform by each division and by the following category of expenditures: personnel services, nonpersonnel services, capital outlay, and debt service. All budget amendments must be approved by the Mayor and/or City Council. Unencumbered appropriations lapse at the end of the fiscal year. Encumbered funds are carried over to the ensuing fiscal year until utilized or canceled.

The City Charter also requires the City Council each year to make an ad valorem tax levy for a sinking fund (debt service fund) that shall provide for principal and interest payments on the general obligation bonded indebtedness of the City.

Appropriations for certain special revenue funds and capital projects funds are controlled on a project basis and are carried forward each year until the project is completed or grant funds are expended.

Budgets are also prepared for the proprietary funds as a management control device. The budgets for these funds are prepared on a revenue and expenditure basis similar to the budgets for the governmental fund types.

(2) Reconciliation of Budget-Basis Revenues and Expenditures to GAAP

Revenue and expenditures presented on a non-GAAP budget basis of accounting differ from the revenues and expenditures presented in accordance with GAAP because of the different treatment of encumbrances and accruals (revenue recognition).

In addition, Section 5.14 of the City of Omaha’s Home Rule Charter requires, in relevant part, that the year-end general fund balance “. . . be applied as general fund revenue in the budget for the fiscal year two years subsequent to that fiscal year.” Therefore, the amount of the general fund carryover coming into a particular fiscal year has already been determined. Any general fund encumbrances at the end of a fiscal year are not included in the year-end general fund balance because those encumbrances will normally need to be paid in the following fiscal year and cannot be held until the fiscal year two years subsequent to the fiscal year when the encumbrance was incurred.


Notes to Budgetary Comparison Schedule – General Fund

(Unaudited)


104

All general fund encumbrances are charged to the appropriate accounts at the end of the fiscal year. This allows those funds to be kept separate from the year-end general fund balance. Therefore, when the actual payments to the vendors are required in the following fiscal year, there are general fund moneys available. A reconciliation of the differences between the budgetary versus GAAP is presented as follows:

General FundBudget basis:2014 carryover to 2016 $ 9,000,000 2013 carryover to 2015 11,883,612

Total budget basis fund balance before transfer out 20,883,612

Basis differences:Cash reserve 6,287,300 Contingent liability reserve 4,984,158 Accrued property taxes 5,928,235 Accrued sales taxes 23,287,172 Accrued interest 113,437 Encumbrances 6,287,665 Inventory 694,950

GAAP basis fund balance $ 68,466,529

(3) Expenditures in Excess of Budget

Budgeted expenditures were exceeded in the following departments/divisions:

Department/Division Amount

General fund:Culture and recreation:

Parks and recreation $ (465,444) Public safety:

Fire (932,497) Public works:

Street and highway (489,287)


Schedule of Changes in the Civilian Plan’s Net Pension Liability

Year ended December 31, 2014

(Dollars in Thousands)

105 (Continued)

2014Total Pension Liability

Service cost $ 14,010 Interest 30,653 Benefit changes - Difference between expected and actual experience - Changes of assumptions 70,858 Benefit payments, including member refunds (31,316)

Net change in Total Pension Liability 84,205

Total Pension Liability - beginning 575,834

Total Pension Liability - ending (a) $ 660,039

Civilian Plan Fiduciary Net PositionContributions – employer $ 12,327 Contributions – member 6,321 Net investment income 11,122 Benefit payments, including member refunds (31,316) Administrative expense (66)

Net change in Civilian Plan Fiduciary Net Position (1,612)

Civilian Plan Fiduciary Net Position – beginning 240,343

Civilian Plan Fiduciary Net Position - ending (b) $ 238,731

Net Pension Liability - ending (a) - (b) $ 421,308

Civilian plan fiduciary net position as a percentageof the total pension liability 36.2%

Covered-employee payroll 60,477

City's net pension liability as a percentage of covered-employee payroll 696.6%

Note to schedule:

Results for the other years within the last ten years are not available and will be developed prospectively from 2014.


Civilian Plan - Schedule of City Contributions



106 (Continued)

2014

Actuarially determined employer contribution $ 17,163 Actual employer contribution 12,327 Annual contribution deficiency $ 4,836

Covered-employee payroll $ 60,477

Actual contributions as a percentage of covered-employee payroll 20.4%

Notes to Schedule:

Results for the other years within the last ten years are not available and will be developedprospectively from 2014 forward.

Valuation date:

Actuarially determined contribution rates are calculated as of January 1 of the most recent actuarial valuation date. The most recent actuarial valuation date is January 1, 2014.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age normal

Amortization method Layered approach with level percent of payroll, closed

Remaining amortization period 18 to 20 years, depending on base

Asset valuation method Expected + 25% of (Market - Expected Values)

Inflation 3.25%

Salary increase, including inflation 4.00% to 10.00%

Investment rate of return 8.00%, net of investment expense, including inflation


Civilian Plan - Required Supplementary Information Schedules


107 (Continued)

Civilian Plan Schedule of City Contributions

2014

Annual money-weighted rate of return, net of investment expense 5.256%

Note to schedule:


Civilian Plan Schedule of Funding Progress (Dollars in Millions)

Actuarial UAAL as aActuarial Accrued Percentage

Actuarial Value of Liability (AAL) Unfunded Funded Covered of CoveredValuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll

Date (a) (b) (b - a) (a / b) (c) ((b - a) / c)

January 1, 2014 $ 237.6 $ 442.8 $ 205.2 53.7% $ 63.4 323.7%January 1, 2013 235.6 436.2 200.6 54.0 63.3 316.9January 1, 2012 236.7 420.8 184.1 56.3 62.8 293.2January 1, 2011 240.3 409.4 169.1 58.7 59.2 285.6January 1, 2010 213.2 402.8 189.6 52.9 55.7 340.4January 1, 2009 204.5 387.7 183.2 52.7 56.4 324.8

Civilian Plan Schedule of Employer Contributions

AnnualActuarial Required AnnualValuation Contribution Pension Percentage

Date (ARC) Contribution Contributed

December 31, 2014 $ 17,996,034 $ 12,326,643 68.5%December 31, 2013 17,406,168 7,194,482 41.3 December 31, 2012 15,658,045 7,216,050 46.1 December 31, 2011 14,564,847 6,618,110 45.4 December 31, 2010 14,149,386 5,717,610 40.4 December 31, 2009 12,893,331 5,310,754 41.2


Schedule of Changes in the Uniformed Plan’s Net Pension Liability



108 (Continued)

2014Total Pension Liability

Service cost $ 29,469 Interest 91,066 Benefit changes - Difference between expected and actual experience - Changes of assumptions - Benefit payments (66,559)

Net change in Total Pension Liability 53,976

Total Pension Liability - beginning 1,170,968

Total Pension Liability - ending (a) $ 1,224,944

Uniformed Plan Fiduciary Net PositionContributions – employer $ 41,852 Contributions – member 19,623 Net investment income 25,665 Benefit payments (66,559) Administrative expense (149)

Net change in Uniformed Plan Fiduciary Net Position 20,432

Uniformed Plan Fiduciary Net Position – beginning 579,495

Uniformed Plan Fiduciary Net Position - ending (b) $ 599,927

Net Pension Liability - ending (a) - (b) $ 625,017

Uniformed plan fiduicary net position as a percentageof the total pension liabilitiy 48.98%

Covered-employee payroll 120,776

City's net pension liability as a percentage of covered-employee payroll 517.50%

Note to schedule:



Uniformed Plan - Schedule of City Contributions



109 (Continued)

2014

Actuarially determined employer contribution $ 43,525 Actual employer contribution 41,852 Annual contribution deficiency $ 1,673

Covered-employee payroll $ 120,776

Actual contributions as a percentage of covered-employee payroll 34.7%

Notes to Schedule:

Results for the other years within the last ten years are not available and will be developedprospectively from 2014 forward.

Valuation date:

Actuarially determined contribution rates are calculated as of January 1 of the most recent actuarial valuation date. The most recent actuarial valuation date is January 1, 2014.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age

Amortization method Level percent of payroll, closed

Remaining amortization period 15 years

Asset valuation method Expected + 25% of (Market - Expected Values)

Inflation 3.25%

Salary increase, including inflation 4.00% to 13.00%

Investment rate of return 8.00%, net of investment expense, including inflation

Cost-of-living adjustment The lesser of 3% or $50 for Police or $65 for Fire


Uniformed Plan - Required Supplementary Information Schedules


110

Uniformed Plan Schedule of City Contributions

2014

Annual money-weighted rate of return, net of investment expense 4.939%

Note to schedule:


Uniformed Plan Schedule of Funding Progress (Dollars in millions)

Actuarial UAAL as aActuarial Accrued Percentage

Actuarial Value of Liability (AAL) Unfunded Funded Covered of CoveredValuation Assets Entry Age AAL (UAAL) Ratio Payroll Payroll

Date (a) (b) (b - a) (a / b) (c) ((b - a) / c)

January 1, 2014 $ 548.4 $ 1,171.0 $ 622.6 46.8% $ 121.0 514.5% January 1, 2013 495.8 1,108.9 613.1 44.7 116.1 528.1January 1, 2012 467.4 1,077.6 610.2 43.4 110.0 554.7January 1, 2011 456.2 1,028.9 572.7 44.3 105.0 545.4January 1, 2010 405.4 1,026.0 620.6 39.5 103.9 597.3January 1, 2009 365.9 947.6 581.7 38.6 99.5 584.6

Uniformed Plan Schedule of Employer Contributions

AnnualActuarial Required AnnualValuation Contribution Pension Percentage

Date (ARC) Contribution Contributed

December 31, 2014 $ 43,524,890 $ 41,851,986 96.2% December 31, 2013 52,895,180 43,838,750 82.9 December 31, 2012 54,310,693 35,302,037 65.0 December 31, 2011 49,945,979 30,775,568 61.6 December 31, 2010 55,488,062 24,183,493 43.6 December 31, 2009 50,507,561 22,701,608 44.9


Postretirement Obligation Schedule of Funding Progress


(Dollars in Millions)

111

Schedule of Funding ProgressUAAL as a

Actuarial Actuarial Unfunded percentagevalue of accrued AAL Covered of coveredassets liability (AAL) (UAAL) Funded ratio payroll payroll

Actuarial valuation date (a) (b) (b-a) (a-b) (c) ((b-a)/c)January 1, 2014 $ - $ 400.8 $ 400.8 $ - % 179.3$ 224%January 1, 2012 - 449.4 449.4 - 164.2 274March 1, 2010 - 478.1 478.1 - 159.7 299

NONMAJOR GOVERNMENTAL FUNDS

City of Omaha, Nebraska Combining Balance Sheet

Nonmajor Governmental Funds

December 31, 2014

112

TotalSpecial Debt Capital Nonmajor

Revenue Service Projects Permanent GovernmentalAssets Funds Funds Funds Funds Funds

Cash and pooled investments $ 17,028,727 2,647,589 11,334,984 187,002 31,198,302 Investments - - 1,487,387 2,832,164 4,319,551 Receivables (net of allowance for uncollectibles) 5,877,112 8,457,095 4,704,778 - 19,038,985 Due from other governments 16,783,541 392,366 101,175 - 17,277,082 Due from other funds 27,823,200 - 284,800 - 28,108,000 Accrued interest 133,615 - 2,808 9,027 145,450 Other assets - - 498,899 - 498,899 Restricted assets:

Funds with trustee 2,677,508 - 2,466,470 - 5,143,978

Total assets $ 70,323,703 11,497,050 20,881,301 3,028,193 105,730,247

Liabilities, Deferred Inflowsof Resources, and Fund Balances

Liabilities:Accounts payable and other current liabilities $ 9,344,219 4,500 1,789,021 - 11,137,740 Due to other governments - - 25,000 - 25,000 Due to other funds 5,856,200 - 284,800 - 6,141,000 Unearned revenue 4,298,035 928 - - 4,298,963

Total liabilities 19,498,454 5,428 2,098,821 - 21,602,703

Deferred inflows of resources:Unavailable revenue 13,936,173 8,008,223 4,174,317 - 26,118,713

Fund balances (deficit):Nonspendable - - 498,899 2,775,389 3,274,288 Restricted 32,945,962 3,483,399 11,071,570 22,052 47,522,983 Committed 9,508,189 - 3,367,653 230,752 13,106,594 Assigned 636,511 - - - 636,511 Unassigned (6,201,586) - (329,959) - (6,531,545)

Total fund balance 36,889,076 3,483,399 14,608,163 3,028,193 58,008,831

Total liabilities, deferred inflowsof resources, and fund balance $ 70,323,703 11,497,050 20,881,301 3,028,193 105,730,247

City of Omaha, Nebraska Combining Statement of Revenues, Expenditures, and

Changes in Fund Balances



113

TotalSpecial Debt Capital Nonmajor

Revenue Service Projects Permanent GovernmentalFunds Funds Funds Funds Funds

Revenues:Taxes:

Property $ 1,661,628 6,767,573 - - 8,429,201 Business 838,998 - - - 838,998 In lieu 6,135 16,298 - - 22,433

Licenses and grants 2,053,148 - - - 2,053,148 Intergovernmental 41,573,480 1,500,000 - - 43,073,480 Investment income 85,930 - 65,313 74,172 225,415 Revenue from Keno 7,130,917 - - - 7,130,917 Charges for services 27,147,032 - 1,446,538 - 28,593,570 Rents, royalties, and other 667,851 725,000 187,700 - 1,580,551 Contributions and grants 23,818,006 230,641 9,347,289 - 33,395,936

Total revenues 104,983,125 9,239,512 11,046,840 74,172 125,343,649

Expenditures:Governmental activities:

General government 6,894,897 76,049 25,597 - 6,996,543 Public safety 5,620,373 - 84,000 - 5,704,373 Transportation services 53,524,251 - 50,000 - 53,574,251 Other public services 2,794,834 - - - 2,794,834 Community development 15,271,282 - 4,529,090 - 19,800,372 Culture and parks 5,674,038 - 92,528 100,000 5,866,566

Debt service:Principal 195,000 5,037,790 303,420 - 5,536,210 Interest 2,320,797 4,402,094 48,608 - 6,771,499

Capital outlay:Other public services 1,203,970 - 2,508,962 - 3,712,932 Public safety - - 3,582,090 - 3,582,090 Culture and parks 337,486 - 4,919,362 - 5,256,848 General government - - 1,271,606 - 1,271,606 Transportation 2,081,000 - 14,527,903 - 16,608,903 Community development - - 239,827 - 239,827

Total expenditures 95,917,928 9,515,933 32,182,993 100,000 137,716,854

Other financing sources (uses):Transfers in 725,913 - 3,644,476 - 4,370,389 Transfers out (328,829) - (2,415,577) - (2,744,406) Issuance of debt - - 19,258,012 - 19,258,012 Premium on debt issued - - 1,680,688 - 1,680,688 Sale of capital assets - - 1,575,285 - 1,575,285

Total other financing sources 397,084 - 23,742,884 - 24,139,968

Net change in fund balance 9,462,281 (276,421) 2,606,731 (25,828) 11,766,763

Beginning fund balance 27,426,795 3,759,820 12,001,432 3,054,021 46,242,068

Ending fund balance $ 36,889,076 3,483,399 14,608,163 3,028,193 58,008,831

SPECIAL REVENUE FUNDS



Special Revenue Funds

114

Special Revenue Funds account for the proceeds from specific revenue sources that are restricted to expenditures for specified purposes.

Judgment Fund – To accumulate resources for the purpose of providing a means to satisfy judgments, damage claims, and related litigation expenses against the City. It is sustained by a Judgment Fund tax levy upon tangible property. The actual and projected revenues are derived from a levy of 0.6 cents per $100 in 2007 – 2014.

Public Library Contribution Fund – To accumulate and hold special contributions for the library from outside sources. Funds are generally restricted for specific purposes to enhance library operations. The trust fund includes grants, gifts, State Aid, and contributions from Friends of the Library and the Library Foundation.

Library Fines and Fees Fund – To account for the revenues generated through fees and fines collected by the Library.

Douglas County Library Supplement Fund – To account for the revenue generated by a property tax levy assessed on Douglas County residents living in unincorporated areas. The Douglas County Board passed this levy in 1995 for the purpose of providing countywide funding for the Omaha Public Library System.

Miscellaneous Contribution Fund – To account for money collected and encumbered into this Expendable Trust Fund. These short-term “small funds” are not large enough for the creation of a fund and are established for the sole purpose of private entity or individual contributions for specific usage of funds. Organizations with current year activity or previous year balances are tracked individually by the finance department.

Keno/Lottery Proceeds Fund – To accumulate resources from the City’s percentage of Keno revenue in the City and account for activities financed with Keno revenues.

SID Administrative Fee Revenue Fund – To collect a 1% fee on Sanitary and Improvement District final construction costs. The City ordinance #36247 passed April 29, 2003 authorized the City to collect a 1% fee (1% of final construction costs) from subdivision applications using Sanitary and Improvement District (SID) financing.

Storm Water Fee Revenue Fund – To account for revenues collected from a fee charged to all retail Metropolitan Utilities District customers. The funds are used to implement administrative requirements of the NPDES Storm Water Permit issued by the Nebraska Department of Environmental Quality in 2003. This function is mandated by the Environmental Protection Agency of the Federal Government.

City Street Maintenance Fund – To account for the usage of City motor vehicle registration fees and street cut fees. The City Motor Vehicle Registration Fee was increased to $50.00 per passenger vehicle, with a graduated schedule for larger vehicles. The street cut fee, derived from local utilities and contractors, is based upon the size of the street cut. Use of funds is restricted to street maintenance and repair purposes and their related costs.

Street and Highway Allocation Fund – To account for usage of State shared vehicle user taxes allocated to the City. Usage of fund proceeds is restricted to street maintenance, improvements, and related purposes. In addition to the state gasoline tax portion, cities and counties divide an additional 2 cents per gallon as authorized by the 1985 State Legislature.




115

Interceptor Sewer Construction Fund – To accumulate resources from the Special Sewer Connection Fees charged to new plats outside the City limits within the Papillion Creek Watershed and existing platted lots as they are developed. These fees are used to finance the extension and/or relief of existing interceptor sanitary sewers in the Papillion Creek Watershed Basin.

Community Park Development Fund – To account for the costs of community park acquisition, and park improvements in suburban Omaha. In addition, subdivision agreements include provisions for revenues to be collected from Sanitary Improvement Districts at appropriate debt to value intervals.

Storm Water Management Plan Program – To account for storm water planning grants received. These funds are used primarily for implementation.

State Turn Back Revenue Fund – To account for money collected upon adoption of LB 551 by the State Legislature and amended in 2008 by LB 754 and LB 912. The City receives 70% of the state sales tax collected through the CenturyLink Omaha and the Hilton hotel. The majority of these funds are used to repay the CenturyLink debt. The remaining 10% of the City’s revenue from this source is to be distributed for tourism-related purposes in the areas of the City with high concentrations of poverty.

Ballpark Revenue Fund – With the passage of City Ordinance #68123 dated June 1, 2008, the City Council established the Ballpark Revenue Fund. The purpose of this special revenue fund is to accumulate excess College World Series revenues for any purpose related to the New Stadium or its operations. The annual excess of Public Funds that exceed the stadium debt service or the Variable Funds that exceed planned projections are to be deposited into this fund. The City’s portion of College World Series revenue shall also be deposited into this fund. The City may retain all Public Surplus Funds in the event the fund balance of this fund exceeds $10,000,000.

Keno Lottery Reserve Fund – To account for the reserve perpetual fund in accordance with Ordinance No. 34688 passed in 1998. Twenty-five (25%) of all Keno revenue must be credited to this fund until the fund balance reaches $2,370,000. After this reserve fund reaches $3,000,000, 25% of the interest earned stays in the fund; 75% is appropriated as permitted.

Grants Fund – To account for costs associated with activities related to various grants received by the City, which are designated for a specific purpose or period of time.

Greater Omaha Convention and Visitors Bureau Fund – To account for the operations of the Greater Omaha Convention and Visitors Bureau, which is a City department established to improve the City’s economy by attracting conventions and visitors.

Household Chemical Disposal Fund – To account for funds related to the collection of household hazardous waste. In August 2001, an Interlocal Agreement between Omaha, Douglas, and Sarpy counties was executed to establish a regional collection center for household hazardous waste (HHW).

Development Revenue Fund – To record fees collected on Tax Increment Financing (TIF) projects in accordance with the City of Omaha Municipal Code, Section 24-150, Fees: Tax Increment Financing Applications, Processing and Administration. Funds received will be used to fund additional staff required to administer the processing of TIF applications.




116

Technology and Training – To account for technology and training fees from any permit, inspection, zoning approval, subdivision approval, board application, or other item sought from or performed by the Planning Department. Fees collected will be used to defray the costs of enhancing the technological resources and training of the Planning Department. This is City Council ordinance number 39121.


Combining Balance Sheet

Nonmajor Special Revenue Funds

December 31, 2014

117

DouglasPublic Library County Keno/

Library Fines Library Miscellaneous LotteryAssets Judgment Contribution and Fees Supplement Contribution Proceeds

Cash and pooled investments $ 129,503 333,356 22 6 1,983,579 169,406 Receivables (net of allowance for uncollectibles) 1,684,019 - - - 139,866 348,511 Due from other governments 6,537 - - 953,301 - - Due from other funds 5,856,200 - - - - - Accrued interest - - - - - - Other assets - - - - - - Restricted assets:

Funds with trustee - - - - - -

Total assets $ 7,676,259 333,356 22 953,307 2,123,445 517,917

Liabilities, Deferred Inflows of Resources, and Fund Balances

Liabilities:Accounts payable and other current liabilities $ 2,209,721 63,452 23 - 15,025 332,176 Due to other funds - - 75,300 734,900 - - Unearned revenue 884 - - - - -

Total liabilities 2,210,605 63,452 75,323 734,900 15,025 332,176

Deferred inflows of resources:Unavailable revenue 1,548,331 - - 953,301 - -

Fund balances (deficit):Restricted 3,917,323 269,904 - - 2,108,420 - Committed - - - - - - Assigned - - - - - 185,741 Unassigned - - (75,301) (734,894) - -

Total fund balance (deficit) 3,917,323 269,904 (75,301) (734,894) 2,108,420 185,741

Total liabilities, deferred inflowsof resources, and fund balance $ 7,676,259 333,356 22 953,307 2,123,445 517,917




December 31, 2014

118

SID Street and Interceptor CommunityAdministrative Storm Water City Street Highway Sewer Park

Assets Fee Revenue Fee Revenue Maintenance Allocation Construction Development

Cash and pooled investments $ 140,241 2,612,155 755,660 31,889 602,796 55 Receivables (net of allowance for uncollectibles) 12,845 - 3,580,122 28,449 - 83,300 Due from other governments - - 1,659,794 3,430,754 - - Due from other funds - - 4,217,000 12,150,000 5,600,000 - Accrued interest - - - - - - Other assets - - - - - - Restricted assets:

Funds with trustee - - - - - -

Total assets $ 153,086 2,612,155 10,212,576 15,641,092 6,202,796 83,355


Liabilities:Accounts payable and other current liabilities $ - 244,323 1,141,191 4,132,041 - 8,567 Due to other funds - - - - - 1,612,700 Unearned revenue - - - - - -

Total liabilities - 244,323 1,141,191 4,132,041 - 1,621,267

Deferred inflows of resources:Unavailable revenue - - 2,532,366 10,565 - 68,396

Fund balances (deficit):Restricted - - 6,539,019 11,498,486 - - Committed 153,086 2,367,832 - - 6,202,796 - Assigned - - - - - - Unassigned - - - - - (1,606,308)

Total fund balance (deficit) 153,086 2,367,832 6,539,019 11,498,486 6,202,796 (1,606,308)

Total liabilities, deferred inflowsof resources, and fund balance $ 153,086 2,612,155 10,212,576 15,641,092 6,202,796 83,355




December 31, 2014

119

Greater OmahaStorm Water State Keno ConventionManagement Turn Back Ballpark Lottery and Visitors

Assets Plan Program Revenue Revenue Reserve Grants Bureau

Cash and pooled investments $ 1,333,346 167,408 997,634 564,639 3,875,627 2,081,357 Receivables (net of allowance for uncollectibles) - - - - - - Due from other governments - - - - 9,901,633 831,522 Due from other funds - - - - - - Accrued interest - - - 133,615 - - Other assets - - - - - - Restricted assets:

Funds with trustee - - - 2,677,508 - -

Total assets $ 1,333,346 167,408 997,634 3,375,762 13,777,260 2,912,879


Liabilities:Accounts payable and other current liabilities $ 49,230 126,500 - - 730,937 259,544 Due to other funds - - - - 3,334,700 - Unearned revenue 1,284,116 - - - 3,013,035 -

Total liabilities 1,333,346 126,500 - - 7,078,672 259,544

Deferred inflows of resources:Unavailable revenue - - - - 7,991,692 831,522

Fund balances (deficits):Restricted - 40,908 997,634 3,375,762 2,376,693 1,821,813 Committed - - - - - - Assigned - - - - - - Unassigned - - - - (3,669,797) -

Total fund balance (deficit) - 40,908 997,634 3,375,762 (1,293,104) 1,821,813

Total liabilities, deferred inflowsof resources, and fund balance $ 1,333,346 167,408 997,634 3,375,762 13,777,260 2,912,879




December 31, 2014

120

TotalHousehold SpecialChemical Development Technology Revenue

Assets Disposal Revenue and Training Funds

Cash and pooled investments $ 11 784,475 465,562 17,028,727 Receivables (net of allowance for uncollectibles) - - - 5,877,112 Due from other governments - - - 16,783,541 Due from other funds - - - 27,823,200 Accrued interest - - - 133,615 Other assets - - - - Restricted assets:

Funds with trustee - - - 2,677,508

Total assets $ 11 784,475 465,562 70,323,703


Liabilities:Accounts payable and other current liabilities $ 16,697 - 14,792 9,344,219 Due to other funds 98,600 - - 5,856,200 Unearned revenue - - - 4,298,035

Total liabilities 115,297 - 14,792 19,498,454

Deferred inflows of resources:Unavailable revenue - - - 13,936,173

Fund balances (deficits):Restricted - - - 32,945,962 Committed - 784,475 - 9,508,189 Assigned - - 450,770 636,511 Unassigned (115,286) - - (6,201,586)

Total fund balance (deficit) (115,286) 784,475 450,770 36,889,076

Total liabilities, deferred inflowsof resources, and fund balance $ 11 784,475 465,562 70,323,703


Combining Statement of Revenues, Expenditures, and Changes in Fund Balance



121

DouglasPublic Library County Keno/

Library Fines Library Miscellaneous LotteryJudgment Contribution and Fees Supplement Contribution Proceeds

Revenues:Taxes:

Property $ 1,661,628 - - - - - Business - - - - - - In lieu 6,135 - - - - -

Licenses and permits - - - - - - Intergovernmental - - - 1,189,421 - - Investment income - - - - 40,007 - Revenue from Keno - - - - - 7,130,917Charges for services - - 394,838 - 348,392 - Rents, royalties, and other 50 - - - 308,173 - Contributions and grants - 795,583 - - 391,196 -

Total revenues 1,667,813 795,583 394,838 1,189,421 1,087,768 7,130,917


General government 1,135,428 - - - 172,474 1,516,428Public safety - - - - 7,330 1,176,000Transportation services - - - - - - Other public services - - - - - 120,000 Community development - 238,558 - - 277,217 - Culture and parks - 542,443 477,492 2,444,000 371,348 1,635,250

Debt service:Principal - - - - - - Interest - - - - - 2,260,492

Capital outlay:Other public services - - - - - - Culture and parks - - - - 11,066 - Transportation - - - - - -

Total expenditures 1,135,428 781,001 477,492 2,444,000 839,435 6,708,170

Other financing sources (uses):Transfers in - - - - - - Transfers out - - - - - -

Total other financing sources (uses) - - - - - -

Excess (deficiency) revenues over

expenditures 532,385 14,582 (82,654) (1,254,579) 248,333 422,747

Beginning fund balance (deficit) 3,384,938 255,322 7,353 519,685 1,860,087 (237,006)

Ending fund balance (deficit) $ 3,917,323 269,904 (75,301) (734,894) 2,108,420 185,741





122

SID Street and Interceptor CommunityAdministrative Storm Water City Street Highway Sewer ParkFee Revenue Fee Revenue Maintenance Allocation Construction Development

Revenues:Taxes:

Property $ - - - - - - Business - - - - - - In lieu - - - - - -

Licenses and permits - - - - 1,591,685 - Intergovernmental - - - 37,673,381 - - Investment income - - - - - - Revenue from Keno - - - - - - Charges for services 145,322 1,289,746 23,075,536 720,607 - 396,716 Rents, royalties, and other - - 23,185 322,998 - - Contributions and grants - 1,295 4,187,195 159,686 - -

Total revenues 145,322 1,291,041 27,285,916 38,876,672 1,591,685 396,716


General government - - 394,964 3,345,810 - - Public safety - - - - - - Transportation services - - 22,790,142 30,734,109 - - Other public services - 1,089,367 - - - - Community development - - - - - - Culture and parks - - 142,485 - - 31,020

Debt service:Principal - - - 195,000 - - Interest - - - 60,305 - -

Capital outlay:Other public services - 44,606 - - - - Culture and parks - - 326,420 - - - Transportation - - - 2,081,000 - -

Total expenditures - 1,133,973 23,654,011 36,416,224 - 31,020

Other financing sources (uses):Transfers in - 16,407 - - - - Transfers out - - - (208,645) (120,184) -

Total other financing sources (uses) - 16,407 - (208,645) (120,184) -


expenditures 145,322 173,475 3,631,905 2,251,803 1,471,501 365,696

Beginning fund balance (deficit) 7,764 2,194,357 2,907,114 9,246,683 4,731,295 (1,972,004)

Ending fund balance (deficit) $ 153,086 2,367,832 6,539,019 11,498,486 6,202,796 (1,606,308)





123

GreaterOmaha

Storm Water State Keno ConventionManagement Turn Back Ballpark Lottery and VisitorsPlan Program Revenue Revenue Reserve Grants Bureau

Revenues:Taxes:

Property $ - - - - - - Business - - 78,367 - - 760,631 In lieu - - - - - -

Licenses and permits - - - - - - Intergovernmental - 258,094 - - - 2,407,213 Investment income - - - 44,989 934 - Revenue from Keno - - - - - - Charges for services - - 291,200 - - 145,406 Rents, royalties, and other - - - - - 13,445 Contributions and grants 769,115 - - - 17,240,601 -

Total revenues 769,115 258,094 369,567 44,989 17,241,535 3,326,695


General government - - - - 242,356 63,955 Public safety - - - - 4,437,043 - Transportation services - - - - - - Other public services 702,682 - - - 476,349 - Community development - 248,209 - - 9,938,503 3,927,578 Culture and parks - - - 30,000 - -

Debt service:Principal - - - - - - Interest - - - - - -

Capital outlay:Other public services 66,433 - - - 1,092,931 - Culture and parks - - - - - - Transportation - - - - - -

Total expenditures 769,115 248,209 - 30,000 16,187,182 3,991,533

Other financing sources (uses):Transfers in - - 150,148 - 559,358 - Transfers out - - - - - -

Total other financing sources (uses) - - 150,148 - 559,358 -


expenditures - 9,885 519,715 14,989 1,613,711 (664,838)

Beginning fund balance (deficit) - 31,023 477,919 3,360,773 (2,906,815) 2,486,651

Ending fund balance (deficit) $ - 40,908 997,634 3,375,762 (1,293,104) 1,821,813





124

TotalHousehold Technology SpecialChemical Development and RevenueDisposal Revenue Training Funds

Revenues:Taxes:

Property $ - - - 1,661,628 Business - - - 838,998 In lieu - - - 6,135

Licenses and permits - - 461,463 2,053,148 Intergovernmental 45,371 - - 41,573,480 Investment income - - - 85,930 Revenue from Keno - - - 7,130,917 Charges for services - 339,269 - 27,147,032 Rents, royalties, and other - - - 667,851 Contributions and grants 273,335 - - 23,818,006

Total revenues 318,706 339,269 461,463 104,983,125


General government - 23,482 - 6,894,897 Public safety - - - 5,620,373 Transportation services - - - 53,524,251 Other public services 406,436 - - 2,794,834 Community development - 181,995 459,222 15,271,282 Culture and parks - - - 5,674,038

Debt service:Principal - - - 195,000 Interest - - - 2,320,797

Capital outlay:Other public services - - - 1,203,970 Culture and parks - - - 337,486 Transportation - - - 2,081,000

Total expenditures 406,436 205,477 459,222 95,917,928

Other financing sources (uses):Transfers in - - - 725,913 Transfers out - - - (328,829)

Total other financing sources (uses) - - - 397,084


expenditures (87,730) 133,792 2,241 9,462,281

Beginning fund balance (deficit) (27,556) 650,683 448,529 27,426,795

Ending fund balance (deficit) $ (115,286) 784,475 450,770 36,889,076


Budgetary Comparison Schedule – Judgment Fund


(Unaudited)

125

Variance withFinal Budget

Budgeted Amounts PositiveOriginal Final Actual (Negative)

Revenues:Taxes property $ 1,668,072 1,668,072 1,661,628 (6,444) Taxes in lieu 6,090 6,090 6,135 45 Rents, royalties, and other - 50 50

Total revenues 1,674,162 1,674,162 1,667,813 (6,349)

Expenditures:General government 1,621,108 1,621,108 1,135,428 485,680

Total expenditures 1,621,108 1,621,108 1,135,428 485,680 Excess of revenues over expenditures 53,054 53,054 532,385 479,331

Net change in fund balances 53,054 53,054 532,385 479,331

Fund balances, beginning 2,705,284 2,705,284 3,384,938 679,654

Fund balances, ending $ 2,758,338 2,758,338 3,917,323 1,158,985


Budgetary Comparison Schedule – Library Fine and Fees Fund


(Unaudited)

126



Revenues:Charges for services $ 463,455 463,455 394,838 (68,617)

Total revenues 463,455 463,455 394,838 (68,617)

Expenditures:Culture and parks 477,492 477,492 477,492 -

Total expenditures 477,492 477,492 477,492 -

Deficiency of revenues overexpenditures (14,037) (14,037) (82,654) (68,617)

Net change in fund balance (14,037) (14,037) (82,654) (68,617)

Fund balances, beginning 14,125 14,125 7,353 (6,772)

Fund balances (deficit), ending $ 88 88 (75,301) (75,389)


Budgetary Comparison Schedule – Douglas County Library Supplement Fund


(Unaudited)

127



Revenues:Intergovernmental $ 1,877,372 1,877,372 1,189,421 (687,951)

Total revenues 1,877,372 1,877,372 1,189,421 (687,951)

Expenditures:Culture and parks 2,444,000 2,444,000 2,444,000 -

Total expenditures 2,444,000 2,444,000 2,444,000 -

Deficiency of revenues overexpenditures (566,628) (566,628) (1,254,579) (687,951)

Net change in fund balance (566,628) (566,628) (1,254,579) (687,951)


Fund balances (deficit), ending $ 15,103 15,103 (734,894) (749,997)


Budgetary Comparison Schedule – Keno / Lottery Proceeds Fund


(Unaudited)

128



Revenues:Revenue from Keno $ 5,431,500 5,431,500 7,130,917 1,699,417

Total revenues 5,431,500 5,431,500 7,130,917 1,699,417

Expenditures:General government - - 1,516,428 (1,516,428) Public safety 1,176,000 1,176,000 1,176,000 - Other public services 120,000 120,000 120,000 - Culture and parks 1,635,250 1,635,250 1,635,250 - Debt service:

Principal - - - - Interest 2,260,492 2,260,492 2,260,492 -

Total expenditures 5,191,742 5,191,742 6,708,170 (1,516,428)

Excess of revenues overexpenditures 239,758 239,758 422,747 182,989

Net change in fund balance 239,758 239,758 422,747 182,989

Fund balances (deficit), beginning (370,891) (370,891) (237,006) 133,885

Fund balances (deficit), ending $ (131,133) (131,133) 185,741 316,874


Budgetary Comparison Schedule – SID Administrative Fees Revenue Fund


(Unaudited)

129



Revenues:Charges for services $ 35,000 35,000 145,322 110,322

Total revenues 35,000 35,000 145,322 110,322

Expenditures:Community development - - - -

Total expenditures - - - -

Excess of revenues overexpenditures 35,000 35,000 145,322 110,322


Fund balances (deficit), beginning (27,000) (27,000) 7,764 34,764

Fund balances, ending $ 8,000 8,000 153,086 145,086


Budgetary Comparison Schedule – Storm Water Fee Revenue Fund


(Unaudited)

130



Revenues:Charges for services $ 2,200,000 2,200,000 1,289,746 (910,254) Contributions and grants - - 1,295 1,295

Total revenues 2,200,000 2,200,000 1,291,041 (908,959)

Expenditures:Other public services 1,507,585 1,556,982 1,089,367 467,615 Capital outlay 49,397 - 44,606 (44,606)

Total expenditures 1,556,982 1,556,982 1,133,973 423,009

Excess of revenues overexpenditures 643,018 643,018 157,068 (485,950)

Other financing uses:Transfer in - - 16,407 16,407

Total other financing uses - - 16,407 16,407

Net change in fund balance 643,018 643,018 173,475 (469,543)

Fund balances, beginning 2,208,000 2,208,000 2,194,357 (13,643)

Fund balances, ending $ 2,851,018 2,851,018 2,367,832 (483,186)


Budgetary Comparison Schedule – City Street Maintenance Fund


(Unaudited)

131



Revenues:Charges for services $ 22,525,000 22,525,000 23,075,536 550,536 Rents, royalties and others - - 23,185 23,185 Contributions and grants 1,700,000 1,700,000 4,187,195 2,487,195

Total revenues 24,225,000 24,225,000 27,285,916 3,060,916

Expenditures:General government 416,000 416,000 394,964 21,036 Transportation services 21,070,779 21,070,779 22,790,142 (1,719,363) Culture and parks 292,731 292,731 142,485 150,246 Capital outlay - - 326,420 (326,420)


Excess of revenuesover expenditures 2,445,490 2,445,490 3,631,905 1,186,415

Other financing uses:Transfers in - - - -

Total other financing uses - - - -

Net change in fund balances 2,445,490 2,445,490 3,631,905 1,186,415

Fund balances (deficits), beginning (1,099,454) (1,099,454) 2,907,114 4,006,568



Budgetary Comparison Schedule – Street and Highway Allocation Fund


(Unaudited)

132

Variance WithFinal Budget


Revenues:Intergovernmental $ 34,627,091 34,627,091 37,673,381 3,046,290 Charges for services - - 720,607 720,607 Rents, royalties and other 29,000 29,000 322,998 293,998 Contributions and grants - - 159,686 159,686

Total revenues 34,656,091 34,656,091 38,876,672 4,220,581

Expenditures:General government 4,720,277 3,424,044 3,345,810 78,234 Transportation services 35,326,843 36,623,076 30,734,109 5,888,967 Culture and parks - - - - Debt service:

Principal 195,000 195,000 195,000 - Interest 58,220 58,220 60,305 (2,085)

Capital outlay - - 2,081,000 (2,081,000)

Total expenditures 40,300,340 40,300,340 36,416,224 3,884,116

Excess of revenues over (under)expenditures (5,644,249) (5,644,249) 2,460,448 8,104,697

Other financing uses:Transfers out - - (208,645) 208,645

Total other financing uses - - (208,645) 208,645

Net change in fund balance (5,644,249) (5,644,249) 2,251,803 (7,896,052)

Fund balances, beginning 7,733,595 7,733,595 9,246,683 1,513,088



Budgetary Comparison Schedule – Interceptor Sewer Construction Fund


(Unaudited)

133



Revenues:Licenses and permits $ 1,000,000 1,000,000 1,591,685 591,685

Total revenues 1,000,000 1,000,000 1,591,685 591,685

Expenditures:Other public services 1,000,000 1,000,000 - 1,000,000

Total expenditures 1,000,000 1,000,000 - 1,000,000

Excess of revenues overexpenditures - - 1,591,685 1,591,685

Other financing uses:Transfers out - - (120,184) 120,184

Total other financing uses - - (120,184) 120,184

Net change in fund balance - - 1,471,501 1,471,501




Budgetary Comparison Schedule – Community Park Development Fund


(Unaudited)

134



Revenues:Charges for services $ 250,000 250,000 396,716 146,716

Total revenues 250,000 250,000 396,716 146,716

Expenditures:- - 31,020 (31,020)

Total expenditures - - 31,020 (31,020)

Excess of revenues over expenditures 250,000 250,000 365,696 115,696


Fund balances, beginning (2,147,708) (2,147,708) (1,972,004) 175,704

Fund balances, ending $ (1,897,708) (1,897,708) (1,606,308) 291,400


Budgetary Comparison Schedule – State Turn Back Revenue Fund


(Unaudited)

135



Revenues:Intergovernmental $ 265,000 265,000 258,094 (6,906)

Total revenues 265,000 265,000 258,094 (6,906)

Expenditures:Community development 248,638 248,638 248,209 429

Total expenditures 248,638 248,638 248,209 429




Fund balances, ending $ 59,979 59,979 40,908 (19,071)


Budgetary Comparison Schedule – Keno / Lottery Reserve Fund


(Unaudited)

136



Revenues:Investment income $ 79,000 79,000 44,989 (34,011)

Total revenues 79,000 79,000 44,989 (34,011)








Budgetary Comparison Schedule – Greater Omaha Convention and Visitors Bureau Fund


(Unaudited)

137



Revenues:Taxes business $ 3,745,051 745,051 760,631 15,580 Intergovernmental - 3,000,000 2,407,213 (592,787) Charges for services 153,000 153,000 145,406 (7,594) Rents, royalties and other 35,000 35,000 13,445 (21,555)

Total revenues 3,933,051 3,933,051 3,326,695 (606,356)

Expenditures:General government 163,442 63,955 63,955 - Community development 3,606,241 3,705,728 3,927,578 (221,850)

Total expenditures 3,769,683 3,769,683 3,991,533 (221,850)

Excess (deficiency) of revenuesover (under) expenditures 163,368 163,368 (664,838) (828,206)

Net change in fund balance 163,368 163,368 (664,838) (828,206)

Fund balances, beginning 1,950,489 1,950,489 2,486,651 536,162



Budgetary Comparison Schedule – Household Chemical Disposal Fund


(Unaudited)

138



Revenues:Intergovernmental $ 300,000 300,000 45,371 (254,629) Contributions and grants 150,000 150,000 273,335 123,335

Total revenues 450,000 450,000 318,706 (131,294)

Expenditures:Other public services 444,038 444,038 406,436 37,602

Total expenditures 444,038 444,038 406,436 37,602

Excess (deficiency) of revenuesover (under) expenditures 5,962 5,962 (87,730) (93,692)


Fund balances, beginning (141,623) (141,623) (27,556) (114,067)

Fund balances, ending $ (135,661) (135,661) (115,286) 20,375

NONMAJOR DEBT SERVICE FUNDS



Debt Service Fund

139

The Debt Service Funds are used to account for the resources for, and the payment of, general long-term debt principal, interest, and related costs.

Riverfront Redevelopment Special Tax Fund – This redevelopment levy is used to pay bond and interest payments on Redevelopment Bonds. The levy for 2009 was .894 cents per $100 of taxable valuation. The levy for 2010, 2011, 2012, and 2013 is 1.594 cents. The State Development Law authorizes a taxing authority of 2.6 cents on each $100 upon actual value of all taxable property in the City.

This Redevelopment Debt Service Fund services the following issuances:

Name Date of Issue Date RetiredSpecial Tax Revenue Redevelopment 2007 2007 2027Special Tax & Tax Allocation Revenue Redevelopment 2007 A 2007 20162008 Special Obligation Refunding ( Riverfront ) 2008 2026Special Tax Revenue Redevelopment 2008* 2008 2028Special Tax Revenue Redevelopment 2009 A 2009 20292012 Special Obligation Refunding (Riverfront)* 2012 2032Special Tax Revenue Redevelopment Refunding Series 2012A 2012 2032Special Tax Revenue Redevelopment Refunding Series 2012B 2012 2018Performing Arts Refunding Redevelopment 2012 2012 2024

The 2012 Special Obligation Refunding Bonds and the 2008 Special Obligation Refunding Bonds are serviced by a variety of revenue sources including Property Tax Revenue, Tax Allocation Revenue, State Cigarette Tax, NRD Miller Park Contribution, Douglas County Miller Park Contribution, Sewer Fees and Land Sales. *The debt service for the sewer-related portion of the 2008 and 2012 Special Obligation Bonds is paid directly from the Sewer Revenue Enterprise Fund.


Balance Sheet

Nonmajor Debt Service Fund – Riverfront

Redevelopment Special Tax Fund

December 31, 2014

140

RiverfrontRedevelopment

SpecialAssets Tax

Cash and pooled investments $ 2,647,589 Receivables (net of allowance for uncollectibles) 8,457,095 Due from other governments 392,366

Total assets $ 11,497,050


Liabilities:Accounts payable and other current liabilities $ 4,500 Unearned revenue 928

Total liabilities 5,428

Deferred inflows of resources:Unavailable revenue 8,008,223

Fund balances:Restricted 3,483,399

Total fund balance 3,483,399

Total liabilities, deferred inflows of resources, and fund balance $ 11,497,050


Statement of Revenues, Expenditures, and Changes in Fund Balance

Nonmajor Debt Service Fund – Riverfront

Redevelopment Special Tax Fund


141

RiverfrontRedevelopment

SpecialTax

Revenues:Taxes:

Property $ 6,767,573 In lieu 16,298

Intergovernmental 1,500,000 Rents, royalties, and other 725,000 Contributions and grants 230,641

Total revenues 9,239,512


General government 76,049 Debt service:

Principal 5,037,790 Interest 4,402,094

Total expenditures 9,515,933

Net change in fund balances (276,421)

Beginning fund balance 3,759,820

Ending fund balance $ 3,483,399


Budgetary Comparison Schedule – Debt Service Fund (Major Fund)


(Unaudited)

142



Revenues:Taxes property $ 53,603,500 53,603,500 54,429,190 825,690 Taxes in lieu - - 197,957 197,957 Intergovernmental 2,558,607 2,558,607 2,322,845 (235,762) Investment income 275,000 275,000 181,031 (93,969) Charges for services 2,025,000 2,025,000 1,587,232 (437,768) Contributions and grants 233,165 233,165 6,855,352 6,622,187

Total revenues 58,695,272 58,695,272 65,573,607 6,878,335

Expenditures:General government 527,257 527,257 1,467,546 (940,289) Debt service:

Principal 39,647,695 39,647,695 53,254,446 (13,606,751) Interest 23,008,424 23,008,424 22,142,701 865,723 Bond issuance costs - - 420,440 (420,440)


Excess (deficiency) of revenuesover expenditures (4,488,104) (4,488,104) (11,711,526) (7,223,422)

Other financing sources (uses):Issuance of debt - - 51,110,000 51,110,000 Premium on debt issued - - 9,450,273 9,450,273 Payment to escrow agent - (49,035,479) (49,035,479)

Total other financing sources - - 11,524,794 11,524,794

Net change in fund balance (4,488,104) (4,488,104) (186,732) 4,301,372




Budgetary Comparison Schedule - Riverfront Redevelopment Special Tax Fund


(Unaudited)

143


Budgeted amounts PositiveOriginal Final Actual (Negative)

Revenues:Taxes property $ 6,702,476 6,702,476 6,767,573 65,097 Taxes in lieu - - 16,298 16,298 Intergovernmental 1,515,950 1,515,950 1,500,000 (15,950) Investment income - - - - Rents, royalties, and other - - 725,000 725,000 Contributions and grants 1,049,233 1,049,233 230,641 (818,592)

Total revenues 9,267,659 9,267,659 9,239,512 (28,147)

Expenditures:General government 43,590 43,590 76,049 (32,459) Debt service:

Principal 4,287,515 4,287,515 5,037,790 (750,275) Interest 5,159,367 5,159,367 4,402,094 757,273


Deficiency of revenues overexpenditures (222,813) (222,813) (276,421) (53,608)

Net change in fund balance (222,813) (222,813) (276,421) (53,608)


Fund balances, ending $ 3,067,818 3,067,818 3,483,399 415,581

NONMAJOR CAPITAL PROJECT FUNDS



Capital Project Funds

144

The Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments.

ASARCO/Lewis and Clark Remediation Fund – To develop initial public improvements associated with the conversion of the ASARCO property to a public recreational area, along with other improvements along the riverfront. Improvements will include trails, benches, landscaping, roads, parking lots, and similar public developments. In addition, the agreement requires ASARCO to deposit $1.5 million to be invested by the City to fund long-term remediation costs.

Advanced Acquisition Fund – To account for net proceeds from the sale or exchange of real property. The net proceeds from the sale or exchange of real property not needed for public purposes are to be credited to this fund. Section 5.03 of the Municipal Code permits usage of available funds to facilitate the orderly and timely acquisition of real estate for public purposes as proposed in the master plan.

City Capital Improvement Fund – To account for money supplemented by General Fund appropriations and grants used to fund various city projects.

2006 Environmental Bond Fund – To account for money received through the issuance of a general obligation bond voted on in the May 2006 primary election. Proceeds from the sale of the bond are used toward the cost of construction and improvement of storm, sanitary, and interceptor sewers throughout the City.

2010 Environmental Bond Fund – To account for money received through the issuance of a general obligation bond voted on in the May 2010 primary election. Proceeds from the sale of the bond are used toward the cost of construction and improvement of storm, sanitary, and interceptor sewers throughout the City.

Airport Business Park Development Fund – To account for contributions received from developers who request Tax Increment Financing throughout the Downtown Northeast area. This requirement is incorporated in the Redevelopment Agreement between the City of Omaha and the developer when sewer connections are required within the Airport Industrial Park and/or East Omaha Detention Cells. All sewer connection fees within this area are paid by this fund. Other funding is provided by TIF proceeds and the sale of land.

2006 Transportation Bond Fund – To account for money received through the issuance of general obligation bonds in the May 2006 primary elections. Proceeds from the sale of these bonds are used toward the cost of construction and improvement of streets, expressways, freeways, and various bridge improvements throughout the City.

2010 Transportation Bond Fund – To account for money received through the issuance of general obligation bonds in the May 2010 primary elections. Proceeds from the sale of these bonds are used toward the cost of construction and improvement of streets, expressways, freeways, and various bridge improvements throughout the City.

2006 Public Facilities Bond Fund – To account for the construction of projects funded with proceeds from the 2006 Public Facility Bond Authorization. The Bond Authorization amount is $16,410,000.

2010 Public Facilities Bond Fund – To account for the construction of projects funded with proceeds from the 2010 Public Facility Bond Authorization. The Bond Authorization amount is $8,025,000.



Capital Project Funds

145

2010 Public Safety Bond Fund – To account for money received through the issuance of general obligation bonds in the May 2010 primary election. Proceeds from the sale of these bonds will be used for various public safety capital expenditures, including the purchase of aerials, pumpers, and emergency vehicle preemption system equipment.

2006 Parks and Recreation Bond Fund – To account for the City of Omaha 2006 Bond issue. The City of Omaha citizens voted and approved, in the spring of 2006, to issue $16,930,000 in General Obligation bonds. This money will be used for development and rehabilitation of City of Omaha Parks and Recreations Centers.

2010 Parks and Recreation Bond Fund – To account for the City of Omaha 2010 Bond issue. The City of Omaha citizens voted and approved on May 11, 2010 to issuance of $14,410,000 in General Obligation bonds. This money will be used for development and rehabilitation of City of Omaha Parks and Recreations Centers.

Downtown Stadium & Companion Project – To account for the construction of a new City baseball stadium to be built between 10th and 13th Streets between Cuming and Webster Streets. The City of Omaha Facilities Corporation will issue lease purchase bonds to provide funding. On June 10, 2008, the Omaha City Council adopted Ordinance 38124 approving the Sixth Amendment to the Agreement and Lease regarding the Omaha Convention Center/Arena between the City and MECA (Metropolitan Entertainment & Convention Authority) to provide for the construction and operation.

Trail Bridge – Joint Use Omaha/Council Bluffs Fund – To account for moneys spent toward the operation and maintenance of the Missouri River Pedestrian Bridge. Funds received in this fund may be used toward inspection, operation and maintenance costs of the crossing bridge.

Missouri River Pedestrian Bridge Fund – To account for the costs associated with the construction of the Missouri River Pedestrian Bridge.

UNMC Infrastructure Improvements Fund – To account for the redevelopment of 42nd Street within the University of Nebraska Medical Center campus. The fund will provide for fully reimbursable expenditures for street and other infrastructure development to the site. The project entails a reduction from 4 to 2 lanes of through traffic creating a pedestrian friendly streetscape. The project has been expanded to include the study of the relocation of Saddle Creek Road to the west permitting development of the previous roadbed into an urban campus.

Downtown Development Fund – To account for the redevelopment of the site known as Pinnacle Foods located across 10th Street from the CenturyLink Center. The fund represents the City’s exercise of its “right of first refusal” to acquire this prime development property.

Capital Special Assessment Fund – To account for Public Works assessments for sidewalks and sewer repairs done by the City. This is assessed annually for the homeowner with outstanding bills. S.I.D.’s are also billed for street and sewer repairs.

Service Special Assessment Fund – To account for a Parks and Recreation fund to enforce the city codes for weeds, litter, and demolition of buildings. This is assessed annually for the homeowner with outstanding bills.



Nonmajor Capital Project Funds

December 31, 2014

146

ASARCO/ AirportLewis & 2006 2010 Business 2006

Clark Advanced City Capital Environmental Environmental Park TransportationAssets Remediation Acquisition Improvement Bond Bond Development Bond

Cash and pooled investments $ 147,028 3,342,761 500,049 - 167,051 660,658 52,783 Investments 1,487,387 - - - - - - Receivables (net of allowance for uncollectibles) - - 24,380 - - - 165,120 Due from other governments - - 30,412 - - - 43,084 Due from other funds 284,800 - - - - - - Accrued interest 2,550 - - - - - - Other assets - - 498,899 - - - - Deposits with trustee - - - - - - -

Total assets $ 1,921,765 3,342,761 1,053,740 - 167,051 660,658 260,987 Liabilities, Deferred Inflows ofResources, and Fund Balances

Liabilities:Accounts payable and other current liabilities $ - 2,855 416,503 - 77,517 - - Due to other funds - - 197,300 - - - - Due to other governments - - - - - - -

Total liabilities - 2,855 613,803 - 77,517 - - Deferred inflows of resources:

Unavailable revenue - - 39,792 - - - 208,204 Fund balance (deficit):

Nonspendable - - 498,899 - - - - Restricted - 3,339,906 - - 89,534 - 52,783 Committed 1,921,765 - - - - 660,658 - Assigned - - - - - - - Unassigned - - (98,754) - - - -

Total fund balance (deficit) 1,921,765 3,339,906 400,145 - 89,534 660,658 52,783

Total liabilities, deferred inflowsof resources, and fund balance $ 1,921,765 3,342,761 1,053,740 - 167,051 660,658 260,987




December 31, 2014

147

2006 2010 2010 2006 2010 Downtown2010 Public Public Public Parks and Parks and Stadium &

Transportation Facilities Facilities Safety Recreation Recreation CompanionAssets Bond Bond Bond Bond Bond Bond Project

Cash and pooled investments $ 3,218,867 - 33 575,931 - 1,353,358 - Investments - - - - - - - Receivables (net of allowance for uncollectibles) 1,011,034 - - - 1,351 12,027 - Due from other governments - - - - - - - Due from other funds - - - - - - - Accrued interest - - - - - - - Other assets - - - - - - - Deposits with trustee 751,229 - - - - - 1,715,241

Total assets $ 4,981,130 - 33 575,931 1,351 1,365,385 1,715,241 Liabilities, Deferred Inflows ofResources, and Fund Balances

Liabilities:Accounts payable and other current liabilities $ 748,642 - 143,738 - - 265,282 - Due to other funds - - 47,500 - - - - Due to other governments - - - - - - -

Total liabilities 748,642 - 191,238 - - 265,282 - Deferred inflows of resources:

Unavailable revenue 434,104 - - - 1,351 - - Fund balance (deficit):

Nonspendable - - - - - - - Restricted 3,798,384 - - 575,931 - 1,100,103 1,715,241 Committed - - - - - - - Assigned - - - - - - - Unassigned - - (191,205) - - - -

Total fund balance (deficit) 3,798,384 - (191,205) 575,931 - 1,100,103 1,715,241

Total liabilities, deferred inflowsof resources, and fund balance $ 4,981,130 - 33 575,931 1,351 1,365,385 1,715,241




December 31, 2014

148

Trail Bridge MissouriJoint Use River UNMC Capital Service TotalOmaha/ Pedestrian Infrastructure Downtown Special Special Capital

Assets Council Bluffs Bridge Improvement Development Assessment Assessment ProjectsCash and pooled investments $ 413,342 - - - 120,665 782,458 11,334,984 Investments - - - - - - 1,487,387 Receivables (net of allowance for uncollectibles) - 40,000 - - 643,689 2,807,177 4,704,778 Due from other governments - - 25,000 - 150 2,529 101,175 Due from other funds - - - - - - 284,800 Accrued interest - - - - 15 243 2,808 Other assets - - - - - - 498,899 Deposits with trustee - - - - - - 2,466,470

Total assets $ 413,342 40,000 25,000 - 764,519 3,592,407 20,881,301 Liabilities, Deferred Inflows ofResources, and Fund Balances

Liabilities:Accounts payable and other current liabilities $ 13,654 - - - 120,830 - 1,789,021 Due to other funds - 40,000 - - - - 284,800 Due to other governments - - 25,000 - - - 25,000

Total liabilities 13,654 40,000 25,000 - 120,830 - 2,098,821 Deferred inflows of resources:

Unavailable revenue - 40,000 - - 643,689 2,807,177 4,174,317 Fund balance (deficit):

Nonspendable - - - - - - 498,899 Restricted 399,688 - - - - - 11,071,570 Committed - - - - - 785,230 3,367,653 Assigned - - - - - - - Unassigned - (40,000) - - - - (329,959)

Total fund balance (deficit) 399,688 (40,000) - - - 785,230 14,608,163

Total liabilities, deferred inflowsof resources, and fund balance $ 413,342 40,000 25,000 - 764,519 3,592,407 20,881,301





149

ASARCO/ AirportLewis & 2006 2010 Business 2006

Clark Advanced City Capital Environmental Environmental Park TransportationRemediation Acquisition Improvement Bond Bond Development Bond

Revenues:Investment income $ 26,351 - 144 - - - - Charges for services - - - - - - - Rents, royalties, and other - - - - - - - Contributions and grants - - 2,877,652 - 1,013,014 - 401,371

Total revenues 26,351 - 2,877,796 - 1,013,014 - 401,371 Expenditures:

Current:General government - - - - - - - Public safety - - 84,000 - - - - Transportation services - - - - - - - Community development - 1,522,419 2,705,171 - - - - Culture and parks - - - - - - -

Debt service:Principal - - - - - - - Interest - - - - - - -

Capital outlay:Other public services - - - 210,408 2,229,278 - - Public safety - - 1,808,729 - - - - Culture and parks - - 134,446 - - - - General government - - - - - - - Transportation - - 2,119,863 - - - 856,333 Community development - - 185,830 - - - -

Total expenditures - 1,522,419 7,038,039 210,408 2,229,278 - 856,333

Other financing sources (uses):Transfers in - - 1,396,337 62,135 - - - Transfers out - - - - (62,135) - - Issuance of debt - - - - 460,300 - - Premium on issuance of debt - - - - 39,700 - - Sale of capital assets - 1,575,285 - - - - -

Total other financing sources (uses) - 1,575,285 1,396,337 62,135 437,865 - -

Excess (deficiency) revenues over expenditures 26,351 52,866 (2,763,906) (148,273) (778,399) - (454,962)

Fund balances (deficit), beginning 1,895,414 3,287,040 3,164,051 148,273 867,933 660,658 507,745

Fund balance (deficit), ending $ 1,921,765 3,339,906 400,145 - 89,534 660,658 52,783





150

2006 2010 2010 2006 2010 Downtown2010 Public Public Public Parks and Parks and Stadium &

Transportation Facilities Facilities Safety Recreation Recreation CompanionBond Bond Bond Bond Bond Bond Project

Revenues:Investment income $ - - - - - - - Charges for services - - - - - - 852,028 Rents, royalties, and other - - - - - 187,700 - Contributions and grants 2,517,453 - - - 11,414 1,319,724 -

Total revenues 2,517,453 - - - 11,414 1,507,424 852,028 Expenditures:

Current:General government - - - - - - - Public safety - - - - - - - Transportation services - - - - - - - Community development - - - - - - - Culture and parks - - 22,783 - - - -

Debt service:Principal - - - - - - 303,420 Interest - - - - - - 48,608

Capital outlay:Other public services - 69,276 - - - - - Public safety - - 1,069,815 703,546 - - - Culture and parks - - 845,579 - 2,873 3,650,824 213,090 General government - - - - - - - Transportation 11,289,032 - 262,675 - - - - Community development - - 53,997 - - - -

Total expenditures 11,289,032 69,276 2,254,849 703,546 2,873 3,650,824 565,118

Other financing sources (uses):Transfers in - 21,479 544,732 17,222 - 1,203,646 - Transfers out (235,256) (544,732) (21,479) - (1,203,646) - - Issuance of debt 13,738,900 - 2,117,600 598,500 - 2,209,700 133,012 Premium on issued debt 1,216,788 - 182,400 51,500 - 190,300 - Sale of capital assets - - - - - -

Total other financing sources (uses) 14,720,432 (523,253) 2,823,253 667,222 (1,203,646) 3,603,646 133,012

Excess (deficiency) revenues over expenditures 5,948,853 (592,529) 568,404 (36,324) (1,195,105) 1,460,246 419,922

Fund balances (deficit), beginning (2,150,469) 592,529 (759,609) 612,255 1,195,105 (360,143) 1,295,319

Fund balance (deficit), ending $ 3,798,384 - (191,205) 575,931 - 1,100,103 1,715,241





151

Trail Bridge MissouriJoint Use River UNMC Capital Service TotalOmaha/ Pedestrian Infrastructure Downtown Special Special Capital

Council Bluffs Bridge Improvement Development Assessment Assessment ProjectsRevenues:

Investment income $ - - - - 7,576 31,242 65,313 Charges for services - - - 2,904 423,836 167,770 1,446,538 Rents, royalties, and other - - - - - - 187,700 Contributions and grants 130,000 30,000 - - 1,046,661 - 9,347,289

Total revenues 130,000 30,000 - 2,904 1,478,073 199,012 11,046,840 Expenditures:

Current:General government - - - - 22,392 3,205 25,597 Public safety - - - - - - 84,000 Transportation services - - - - 50,000 - 50,000 Community development - - - 1,500 300,000 - 4,529,090 Culture and parks 44,745 - - - 25,000 - 92,528

Debt service:Principal - - - - - - 303,420 Interest - - - - - - 48,608

Capital outlay:Other public services - - - - - - 2,508,962 Public safety - - - - - - 3,582,090 Culture and parks 72,550 - - - - - 4,919,362 General government - - - - 1,271,606 - 1,271,606 Transportation - - - - - - 14,527,903 Community development - - - - - - 239,827

Total expenditures 117,295 - - 1,500 1,668,998 3,205 32,182,993

Other financing sources (uses):Transfers in 130,000 - - - 268,925 - 3,644,476 Transfers out - - - (1,404) (78,000) (268,925) (2,415,577) Issuance of debt - - - - - - 19,258,012 Premium on issued debt - - - - - - 1,680,688 Sale of capital assets - - - - - - 1,575,285

Total other financing sources (uses) 130,000 - - (1,404) 190,925 (268,925) 23,742,884

Excess (deficiency) revenues over expenditures 142,705 30,000 - - - (73,118) 2,606,731

Fund balances (deficit), beginning 256,983 (70,000) - - - 858,348 12,001,432

Fund balance (deficit), ending $ 399,688 (40,000) - - $ - 785,230 14,608,163


Budgetary Comparison Schedule – Advance Acquisition Fund


(Unaudited)

152



Revenues:Contributions and grants $ - - - -

Total revenues - - - -

Expenditures:Community development 1,246,000 1,246,000 1,522,419 (276,419) Capital outlay - - - -


Deficiency of revenues underexpenditures (1,246,000) (1,246,000) (1,522,419) (276,419)

Other financing sources:Sale of capital assets - - 1,575,285 1,575,285

Total other financing sources - - 1,575,285 1,575,285

Net change in fund balance (1,246,000) (1,246,000) 52,866 1,298,866


Fund balances, ending $ 155,694 155,694 3,339,906 3,184,212


Budgetary Comparison Schedule – 2010 Environmental Bond Fund


(Unaudited)

153



Revenues:Contributions and grants $ - - 1,013,014 1,013,014

Total revenues - - 1,013,014 1,013,014

Expenditures:Capital outlay 1,319,000 1,319,000 2,229,278 (910,278)


Deficiency of revenues underexpenditures (1,319,000) (1,319,000) (1,216,264) 102,736

Other financing sources (uses):Transfers out - - (62,135) (62,135) Issuance of debt 1,319,000 1,319,000 460,300 (858,700) Premium on issued debt - - 39,700 39,700

Total other financing sources 1,319,000 1,319,000 437,865 (881,135)

Net change in fund balance - - (778,399) (778,399)

Fund balances, beginning - - 867,933 867,933

Fund balances, ending $ - - 89,534 89,534


Budgetary Comparison Schedule – 2010 Transportation Bond Fund


(Unaudited)

154


Budgeted amounts PositiveOriginal Final Actual (Negative)


Total revenues - - 2,517,453 2,517,453



Deficiency of revenues underexpenditures (10,659,000) (10,659,000) (8,771,579) 1,887,421

Other financing sources (uses):Transfers out - - (235,256) (235,256) Issuance of debt 11,234,000 11,234,000 13,738,900 2,504,900 Premium on debt issued - - 1,216,788 1,216,788

Total other financing sources 11,234,000 11,234,000 14,720,432 3,486,432

Net change in fund balance 575,000 575,000 5,948,853 5,373,853

Fund balances (deficit), beginning - - (2,150,469) (2,150,469)

Fund balances, ending $ 575,000 575,000 3,798,384 3,223,384


Budgetary Comparison Schedule – 2010 Public Facilities Bond Fund


(Unaudited)

155



Revenues:Contributions and grants $ - - - -


Expenditures:Culture and parks - - 22,783 (22,783) Capital outlay 2,559,000 2,559,000 2,232,066 326,934

Total expenditures 2,559,000 2,559,000 2,254,849 304,151


Other financing sources (uses):Transfers in - - 544,732 544,732 Transfers out - - (21,479) (21,479) Issuance of debt 2,559,000 2,559,000 2,117,600 (441,400) Premium on debt issued - - 182,400 182,400

Total other financing sources 2,559,000 2,559,000 2,823,253 264,253

Net change in fund balance - - 568,404 568,404

Fund balances (deficit), beginning - - (759,609) (759,609)

Fund balances (deficit), ending $ - - (191,205) (191,205)


Budgetary Comparison Schedule – 2010 Public Safety Bond Fund


(Unaudited)

156



Revenues:$ - - - -


Expenditures:Capital outlay 1,665,000 1,665,000 703,546 961,454

Total expenditures 1,665,000 1,665,000 703,546 961,454

Deficiency of revenues underexpenditures (1,665,000) (1,665,000) (703,546) 961,454

Other financing sources :Transfers in - - 17,222 17,222 Issuance of debt 1,665,000 1,665,000 598,500 (1,066,500) Premium on debt issued - - 51,500 51,500

Total other financing sources 1,665,000 1,665,000 667,222 (997,778)

Net change in fund balance - - (36,324) (36,324)

Fund balances (deficit), beginning - - 612,255 612,255

Fund balances, ending $ - - 575,931 575,931


Budgetary Comparison Schedule – 2010 Parks and Recreation Bond Fund


(Unaudited)

157




Total revenues - - 1,507,424 1,507,424




Other financing sources:Transfer in - - 1,203,646 1,203,646 Issuance of debt 3,118,000 3,118,000 2,209,700 (908,300) Premium on debt issued - - 190,300 190,300

Total other financing sources 3,118,000 3,118,000 3,603,646 485,646

Net change in fund balance - - 1,460,246 1,460,246

Fund deficit, beginning - - (360,143) (360,143)

Fund balances, ending $ - - 1,100,103 1,100,103


Budgetary Comparison Schedule – Downtown Stadium and Companion Project Fund


(Unaudited)

158



Revenues:Charges for services $ - - 852,028 852,028 Contributions and grants 4,000,000 4,000,000 - (4,000,000)

Total revenues 4,000,000 4,000,000 852,028 (3,147,972)

Expenditures:Debt Service:

Principal - - 303,420 (303,420) Interest - - 48,608 (48,608)

Capital outlay - - 213,090 (213,090)

Total expenditures - - 565,118 (565,118)

Excess of revenuesover expenditures 4,000,000 4,000,000 286,910 (3,713,090)

Other financing sources :Issuance of debt - - 133,012 133,012

Total other financing sources - - 133,012 133,012

Net change in fund balance 4,000,000 4,000,000 419,922 (3,580,078)

Fund balances (deficit), beginning (3,130,922) (3,130,922) 1,295,319 4,426,241

Fund balances, ending $ 869,078 869,078 1,715,241 846,163


Budgetary Comparison Schedule – Pedestrian Trail Bridge

Joint-Use Omaha / Council Bluffs Fund


(Unaudited)

159



Revenues:Contributions and grants $ 130,000 130,000 130,000 -

Total revenues 130,000 130,000 130,000 -

Expenditures:Culture and parks 116,915 116,915 44,745 72,170 Capital outlay - - 72,550 (72,550)

Total expenditures 116,915 116,915 117,295 (380)

Excess of revenues over expenditures 13,085 13,085 12,705 (380)

Other financing sources:Transfers in 130,000 130,000 130,000 -

Total other financing sources 130,000 130,000 130,000 -

Net change in fund balance 143,085 143,085 142,705 (380)


Fund balances, ending $ 415,858 415,858 399,688 (16,170)


Budgetary Comparison Schedule – Capital Special Assessment Fund


(Unaudited)

160



Revenues:Investment income $ 30,000 30,000 7,576 (22,424) Charges for services 465,000 465,000 423,836 (41,164) Contributions and grants - - 1,046,661 1,046,661

Total revenues 495,000 495,000 1,478,073 983,073

Expenditures:General government 28,000 28,000 22,392 5,608 Transportation services 865,000 865,000 50,000 815,000 Community development 300,000 300,000 300,000 - Culture and parks 25,000 25,000 25,000 - Capital outlay - - 1,271,606 (1,271,606)


Deficiency of revenuesunder expenditures (723,000) (723,000) (190,925) 532,075

Other financing sources (uses):Transfers in 72,931 72,931 268,925 195,994 Transfers out - - (78,000) (78,000)

Total other financing sources 72,931 72,931 190,925 117,994

Net change in fund balance (650,069) (650,069) - 650,069

Fund balances, beginning 650,069 650,069 - (650,069)

Fund balances, ending $ - - - -


Budgetary Comparison Schedule – Service Special Assessment Fund


(Unaudited)

161



Revenues:Investment income $ 35,000 35,000 31,243 (3,757) Charges for services 200,000 200,000 167,770 (32,230)

Total revenues 235,000 235,000 199,013 (35,987)

Expenditures:General government 2,000 2,000 3,205 (1,205)

Total expenditures 2,000 2,000 3,205 (1,205)


Other financing uses:Transfers in - - - - Transfers out (72,931) (72,931) (268,925) (195,994)

Total other financing uses (72,931) (72,931) (268,925) (195,994)


Fund balances (deficit), beginning (135,502) (135,502) 858,348 993,850

Fund balances, ending $ 24,567 24,567 785,231 760,664

NONMAJOR PERMANENT FUNDS

City of Omaha, Nebraska Nonmajor Governmental Funds

Permanent Funds

162

Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government’s programs.

Western Heritage Special Revenue Fund – To account for a Permanent Endowment fund established in accordance with City Ordinance #33472 passed January 31, 1995, whereby the City will contribute moneys toward the renovation and construction at the Western Heritage Museum. These funds were realized from the sale of a portion of the Byron Reed coin and manuscript collection held in October 1996.

Endowment for Library Fund – To account for funds that are donated to the Public Library from outside sources. This is a permanent fund for endowment gifts. In 1974, Don L. Hayes bequeathed to the Public Library a permanent memorial endowment with interest to be used to purchase books in honor of his parents. In 1979, Ralph Anderson bequeathed an endowment to the library with interest to be used to benefit the library. Annual interest from these accounts is used to enhance the library’s collections and operations.

City of Omaha, Nebraska Combining Balance Sheet

Permanent Funds

December 31, 2014

163

TotalWestern Endowment Permanent

Assets Heritage for Library Funds

Cash and pooled investments $ 166,402 20,600 187,002 Investments 2,773,431 58,733 2,832,164 Accrued interest 8,837 190 9,027

Total assets $ 2,948,670 79,523 3,028,193

Liabilities and Fund Balances

Fund balances:Nonspendable 2,717,918 57,471 2,775,389 Restricted - 22,052 22,052 Committed 230,752 - 230,752

Total fund balance $ 2,948,670 79,523 3,028,193

City of Omaha, Nebraska Combining Statement of Revenues, Expenditures, and

Changes in Fund Balance

Permanent Funds


164

TotalWestern Endowment PermanentHeritage for Library Funds

Revenues:Investment income $ 57,797 16,375 74,172

Total revenues 57,797 16,375 74,172


Culture and parks 100,000 - 100,000

Total expenditures 100,000 - 100,000

Net change in fund balance (42,203) 16,375 (25,828)

Beginning fund balance 2,990,873 63,148 3,054,021

Ending fund balance $ 2,948,670 79,523 3,028,193

City of Omaha, Nebraska Budgetary Comparison Schedule –

Western Heritage Fund


(Unaudited)

165



Revenues:Investment income $ 31,500 31,500 57,797 26,297

Total revenues 31,500 31,500 57,797 26,297



Deficiency of revenuesunder expenditures (68,500) (68,500) (42,203) 26,297

Net change in fund balance (68,500) (68,500) (42,203) 26,297



NONMAJOR ENTERPRISE FUNDS


Nonmajor Enterprise Funds

166

The Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises: (a) where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis is financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.

City Wide Sports Revenue Fund – To account for the moneys received from adult leagues operated by the Parks, Recreation, and Public Property Department. Currently, leagues are formed for football, volleyball, and basketball competition. The fund is self-supported through registration fees charged to participants.

Marinas Fund – To account for activities at the N.P. Dodge Park Marina, the Riverfront Marina, and Cunningham Lake Marina. This Enterprise Fund accounts for receipts generated through the leasing of boat stalls at the N.P. Dodge Park Marina.

Dodge Park Marina Dredge Fund – To account for the accumulated reserves for the replacement of the River Dredge. The Dodge Park Marina Dredge Fund is a special revenue fund created to take care of any contingencies (repairs, etc.) that occur with the dredge. Each year, $4,000 is transferred from the Dodge Park Marina fund to this fund.

Tennis Operations Fund – To account for the Tennis operations at the City of Omaha Tennis courts. This enterprise fund provides for the operation of one 8-court indoor tennis center, one 15-court tennis center, and numerous neighborhood tennis courts located throughout the City.

Golf Operations Fund – To account for the Golf operations and concessions at the City of Omaha Golf Courses. This enterprise fund was created in 1993 to form a self-supporting enterprise fund for the operations at all Municipal Golf Courses, which includes maintenance of the City’s four 18-hole golf courses and five 9-hole golf courses and to fund necessary capital improvements.

Air Quality Fund – To account for the Title V federal funding and the applicable City ordinance authorized fees. These funds provide the City the necessary resources to monitor the air quality and enforce the health and environmental laws relating to clean air.

Compost Fund – To account for the contract between the City of Omaha and the Quality Control Division of the City of Omaha to operate the compost facility located adjacent to the Papillion Creek Wastewater Treatment Plant.

Printing Services and Graphics Fund – To account for the charges for printing services for the various City and Douglas County departments, agencies, and grant fund projects.

Riverfront Plaza and Marina Fund – To account for the activity at Lewis and Clark landing on the City of Omaha’s Missouri Riverfront. The plaza is available for private groups to rent.


Combining Statement of Net Position


December 31, 2014

167

City Wide Dodge ParkSports Marina Tennis Golf

Assets Revenue Marinas Dredge Operations Operations

Current assets:Cash and cash equivalents $ 25,925 118,226 77,586 18,346 - Due from other funds - 1,275,600 - - - Receivable (net of allowance for uncollectibles) - - - - - Inventories - - - - 21,169

Total current assets 25,925 1,393,826 77,586 18,346 21,169

Noncurrent assets:

Capital assets:Building and systems - 2,670,847 - 3,648,929 2,908,354 Machinery and equipment - 141,883 - - 1,828,266 Construction in progress - 8,159 - - -

Less accumulated depreciation - (1,648,713) - (1,875,719) (3,650,782)

Total capital assets, net - 1,172,176 - 1,773,210 1,085,838

Total noncurrent assets - 1,172,176 - 1,773,210 1,085,838

Total assets $ 25,925 2,566,002 77,586 1,791,556 1,107,007


Current liabilities:Accounts payable and other $ 11,217 4,604 - 10,856 116,436 Workers’ compensation and healthcare claims - 10,604 - 10,604 151,481 Due to other funds - - - - 1,275,600 Compensated absences - 126 - 2,431 15,668

Total current liabilities 11,217 15,334 - 23,891 1,559,185

Noncurrent liabilities:Net pension obligation - 175,721 - 88,717 1,270,318 Postretirement benefit obligation - 160,760 - 81,163 1,162,159 Workers’ compensation and healthcare claims - 22,481 - 22,481 321,167 Compensated absences - 1,630 - 31,333 201,948

Total noncurrent liabilities - 360,592 - 223,694 2,955,592

Total liabilities 11,217 375,926 - 247,585 4,514,777

Net position: (deficit)

Net investment in capital assets - 1,172,176 - 1,773,210 1,085,838 Unrestricted 14,708 1,017,900 77,586 (229,239) (4,493,608)

Total net position (deficit) 14,708 2,190,076 77,586 1,543,971 (3,407,770)

Total liabilities and net position $ 25,925 2,566,002 77,586 1,791,556 1,107,007


Combining Statement of Net Position


December 31, 2014

168

Printing Riverfront TotalServices & Plaza & Nonmajor

Assets Air Quality Compost Graphics Marina Enterprise

Current assets:Cash and cash equivalents $ 719,241 1,935 54,813 100,827 1,116,899 Due from other funds - - - - 1,275,600 Receivable (net of allowance for uncollectibles) 8,345 - 133,998 - 142,343 Inventories - - - - 21,169

Total current assets 727,586 1,935 188,811 100,827 2,556,011

Noncurrent assets:

Capital assets:Building and systems - - - - 9,228,130 Machinery and equipment - - 76,471 - 2,046,620 Construction in progress - - - - 8,159

Less accumulated depreciation - - (76,471) - (7,251,685)

Total capital assets, net - - - - 4,031,224

Total noncurrent assets - - - - 4,031,224

Total assets $ 727,586 1,935 188,811 100,827 6,587,235


Current liabilities:Accounts payable and other $ 23,751 1,935 29,789 12,608 211,196 Workers’ compensation and healthcare claims 22,722 - 4,544 - 199,955 Due to other funds - - - - 1,275,600 Compensated absences 5,385 - 725 - 24,335

Total current liabilities 51,858 1,935 35,058 12,608 1,711,086

Noncurrent liabilities:Net pension obligation 344,712 - 62,030 - 1,941,498 Postretirement benefit obligation 315,362 - 56,749 - 1,776,193 Workers’ compensation and healthcare claims 48,175 - 9,635 - 423,939 Compensated absences 69,407 - 9,349 - 313,667

Total noncurrent liabilities 777,656 - 137,763 - 4,455,297

Total liabilities 829,514 1,935 172,821 12,608 6,166,383

Net position (deficit):

Net investment in capital assets - - - - 4,031,224 Unrestricted (101,928) - 15,990 88,219 (3,610,372)

Total net position (deficit) (101,928) - 15,990 88,219 420,852

Total liabilities and net position $ 727,586 1,935 188,811 100,827 6,587,235


Combining Statement of Revenues, Expenses, and

Changes in Net Position



169


Revenue Marinas Dredge Operations Operations

Operating revenues:Charges for services $ 363,430 581,984 - 266,099 4,075,029

Total operating revenues 363,430 581,984 - 266,099 4,075,029

Operating expenses:Personal services 268,074 332,214 - 201,085 3,244,386 Outside services 119,445 28,873 - 52,006 744,683 Operation and maintenance 125,138 43,983 - 40,671 784,746 Cost of sales and service 5,159 68,889 - - 266,656 Depreciation and amortization - 95,385 - 108,620 147,224

Total operating expenses 517,816 569,344 - 402,382 5,187,695

Operating income (loss) (154,386) 12,640 - (136,283) (1,112,666)

Nonoperating revenues (expenses):Loss on dispoal of assets - - - - - Miscellaneous - - - - -

Total nonoperating revenues (expenses) - - - - -

Income (loss) before contributions and transfers (154,386) 12,640 - (136,283) (1,112,666)

Transfer in - 29,000 - - Transfer out - (29,000) - - -

Change in net position (154,386) (16,360) 29,000 (136,283) (1,112,666)

Total net position (deficit), beginning 169,094 2,206,436 48,586 1,680,254 (2,295,104)

Total net position (deficit), ending $ 14,708 2,190,076 77,586 1,543,971 (3,407,770)


Combining Statement of Revenues, Expenses, and

Changes in Net Position



170

Printing Riverfront TotalServices & Plaza & Nonmajor

Air Quality Compost Graphics Marina Enterprise

Operating revenues:Charges for services $ 744,000 - 356,682 59,510 6,446,734

Total operating revenues 744,000 - 356,682 59,510 6,446,734

Operating expenses:Personal services 524,522 - 105,261 - 4,675,542 Outside services 26,938 - 91,012 71,069 1,134,026 Operation and maintenance 131,342 - 163,032 267 1,289,179 Cost of sales and service - - - - 340,704 Depreciation and amortization - - - - 351,229

Total operating expenses 682,802 - 359,305 71,336 7,790,680

Operating income (loss) 61,198 - (2,623) (11,826) (1,343,946)

Nonoperating revenues (expenses):Loss on dispoal of assets - (359,638) - - (359,638) Miscellaneous - 1,084,514 - - 1,084,514

Total nonoperating revenues (expenses) - 724,876 - - 724,876

Income (loss) before contributions and transfers 61,198 724,876 (2,623) (11,826) (619,070)

Transfer in 12,341 26,683 - - 68,024 Transfer out - - - - (29,000)

Change in net position 73,539 751,559 (2,623) (11,826) (580,046)

Total net position (deficit), beginning (175,467) (751,559) 18,613 100,045 1,000,898

Total net position (deficit), ending $ (101,928) - 15,990 88,219 420,852


Combining Statement of Cash Flows



171


Revenue Marinas Dredge Operations Operations

Cash flows from operating activities:Receipts from customers $ 363,430 581,984 - 266,099 4,075,029 Payments to suppliers (242,481) (154,792) - (91,352) (1,721,869) Payments to employees (268,074) (230,211) - (183,657) (2,556,015)

Net cash provided by (used in) operating activities (147,125) 196,981 - (8,910) (202,855)

Cash flows from noncapital financing activities:Transfers in (out) - (29,000) 29,000 - - Advances from (to) other funds - (298,600) - - 353,600

Net cash provided by (used in) noncapital financing activities - (327,600) 29,000 - 353,600

Cash flows from capital and related financing activities:Capital expenditures - (12,591) - - (151,714)

Net cash used in capital and related financing activities - (12,591) - - (151,714)

Net increase (decrease) in cash and cash equivalents (147,125) (143,210) 29,000 (8,910) (969)

Cash and cash equivalents, beginning of year 173,050 261,436 48,586 27,256 969

Cash and cash equivalents, end of year $ 25,925 118,226 77,586 18,346 -

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:

Operating income (loss) $ (154,386) 12,640 - (136,283) (1,112,666) Adjustment to reconcile operating income (loss) to

net cash provided by (used in) operating activities:Depreciation and amortization - 95,385 - 108,620 147,224 Cash flows impacted by changes in:

Receivables 7,261 - - - - Inventories - - - - 462 Advanced charges - - - - 10,000 Accounts payable and other current liabilities - (13,047) - 1,325 63,754 Worker's compensation - 2,416 - 2,416 95,858 Compensated absences and healthcare claims - (116) - (2,643) 30,707 Net pension obligation - 49,330 - 7,460 271,763 Postretirement benefit obligation - 50,373 - 10,195 290,043

Net cash provided by (used in) operating

activities $ (147,125) 196,981 - (8,910) (202,855)


Combining Statement of Cash Flows



172

Printing Riverfront TotalAir Services & Plaza & Nonmajor

Quality Compost Graphics Marina Enterprise

Cash flows from operating activities:Receipts from customers $ 757,198 - 242,315 59,510 6,345,565 Payments to suppliers (143,818) - (273,571) (58,728) (2,686,611) Payments to employees (439,113) - (96,094) - (3,773,164)

Net cash provided by (used in) operating activities 174,267 - (127,350) 782 (114,210)

Cash flows from noncapital financing activities:Transfers in (out) 12,341 1,143 - - 13,484 Advances from (to) other funds - - - - 55,000

Net cash provided by (used in) noncapital financing activities 12,341 1,143 - - 68,484

Cash flows from capital and related financing activities:Capital expenditures - - - - (164,305)

Net cash used in capital and related financing activities - - - - (164,305)

Net increase (decrease) in cash and cash equivalents 186,608 1,143 (127,350) 782 (210,031)

Cash and cash equivalents, beginning of year 532,633 792 182,163 100,045 1,326,930

Cash and cash equivalents, end of year $ 719,241 1,935 54,813 100,827 1,116,899

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:

Operating income (loss) $ 61,198 - (2,623) (11,826) (1,343,946) Adjustment to reconcile operating income (loss) to

net cash provided by (used in) operating activities:Depreciation and amortization - - - - 351,229 Cash flows impacted by changes in:

Receivables 13,198 - (114,367) - (93,908) Inventories - - - - 462 Advanced charges - - - - 10,000 Accounts payable and other current liabilities 14,462 - (19,527) 12,608 59,575 Worker's compensation 5,178 - (3,346) - 102,522 Compensated absences and healthcare claims 8,623 - 972 - 37,543 Net pension obligation 30,592 - 4,787 - 363,932 Postretirement benefit obligation 41,016 - 6,754 - 398,381

Net cash provided by (used in) operating

activities $ 174,267 - (127,350) 782 (114,210)

PENSION TRUST FUNDS

City of Omaha, Nebraska Pension Trust Funds

173

The Pension Trust Funds are used to account for assets held by the City in a trustee capacity.

Civilian Retirement Fund – To account for resources that are held in trust for the members and beneficiaries of the full-time Civilian employees of the City of Omaha.

Police/Fire Retirement Reserve Fund – To account for resources that are held in trust for the members and beneficiaries of the Police and Fire Sworn full-time employees of the City of Omaha.

City of Omaha, Nebraska Combining Statement of Fiduciary Net Position

Pension Trust Funds

December 31, 2014

174

Civilian Police/Fire TotalRetirement Retirement Pension

Fund Reserve Fund Trust FundsAssets

Cash and cash equivalents $ 7,150,020 478,985 7,629,005 Receivables:

Accounts receivable 1,130,595 1,940,276 3,070,871 Accrued interest 212,212 1,854,916 2,067,128

Due from other governments 28,871 - 28,871 Investments, at fair value:

Government securities 7,214,170 11,154,899 18,369,069 Municipal issues 2,107,963 2,567,794 4,675,757 Corporate bonds 36,513,748 102,409,051 138,922,799 Domestic equities 55,656,270 195,074,552 250,730,822 International equities 33,725,688 127,633,819 161,359,507 Domestic real estate securities 45,495,916 122,982,967 168,478,883 International real estate - 2,591,180 2,591,180 Commodities 6,625,248 7,669,131 14,294,379 Private equity 20,358,138 15,116,245 35,474,383 Hedge funds 18,779,086 - 18,779,086 Cash and cash equivalents 4,063,288 9,261,209 13,324,497

Total assets $ 239,061,213 600,735,024 839,796,237


Accounts payable and other current liabilities $ 330,767 807,856 1,138,623

Total liabilities 330,767 807,856 1,138,623

Net position restricted for pensions 238,730,446 599,927,168 838,657,614

Total liabilities and net position $ 239,061,213 600,735,024 839,796,237

City of Omaha, Nebraska Combining Statement of Changes in Fiduciary Net Position

Pension Trust Funds


175

Civilian Police/Fire TotalRetirement Retirement Pension

Fund Reserve Fund Trust Funds

Additions:Contributions:

Employer $ 12,326,643 41,851,986 54,178,629 Employee 6,321,141 19,623,633 25,944,774

Total contributions 18,647,784 61,475,619 80,123,403

Investment income:Dividends and interest 6,306,426 16,103,040 22,409,466 Net appreciation in fair value of investments 6,070,127 12,391,755 18,461,882

Total investment earnings 12,376,553 28,494,795 40,871,348

Investment expenses (1,318,321) (2,966,034) (4,284,355)

Net investment income 11,058,232 25,528,761 36,586,993

Total additions 29,706,016 87,004,380 116,710,396

Deductions:Benefit payments 31,318,384 66,571,864 97,890,248

Change in net position (1,612,368) 20,432,516 18,820,148

Net position restricted for pensions,beginning of year 240,342,814 579,494,652 819,837,466

Net position restricted for pensions,end of year $ 238,730,446 599,927,168 838,657,614

AGENCY FUNDS


Agency Funds

176 (Continued)

The Agency Funds account for assets held by the City as an agent for various local governments.

R/D #126 First National Bank Tower Fund – To account for the tax increment financing revenues collected in regard to the First National Bank Tower TIF project.

R/D #132 ConAgra Campus and Parking Fund – To account for the tax increment financing revenues collected with regard to the ConAgra Campus/Parking TIF project. Property taxes from the increased property value are collected and used to pay off the TIF debt service requirements.

TIF Bond Debt Service Fund – To account for the tax increment financing revenues collected in regards to the Convention Center Hotel TIF project and account for the debt service reserve required by the issuance of bonds.

TIF Redevelopment Projects Fund – To comply with the Community Development Law of the State of Nebraska (Chapter 18, Article 21, Sections 18-2101) as supplemented and including Sections 18-2147 to 18-2153, Reissue Revised Statutes of Nebraska, 1943, as amended. This fiduciary fund is required in accordance with Section 18-2147 to establish separate funds into which Excess Tax Revenues (provided from special tax provisions) from the Redevelopment site shall be paid and from which the principal and interest of the Redevelopment Note shall be paid.

R/D #122 First National Child Care Facility - To account for the tax increment financing revenues collected in regards to the First National Bank Day Care TIF project. These funds will be remitted to First National upon request.

R/D #77 Hammons/Embassy Suites Fund – To account for the tax increment financing revenues collected in regards to the ConAgra Embassy Suites Hotel TIF project.

Appeal Bond Deposit Fund – To account for appeal application fees received from citizens whose application to build upon or rezone an area of land within the City limits has been denied. Fees are charged for appeal applications to defray the administrative costs incurred by the City Planning Board of Appeals.

Automobile Impounding Deposit Fund – To account for vehicles sold at auction at the police tow lot for more than the accumulated charges against the vehicle. The amount in excess of the accumulated charges is held in escrow for two years, during which the former owner can claim the money held.

Bid Deposit Fund – To account for moneys collected from vendors based on the required amounts to place a bid within the City. Once the bid process is completed and bid is awarded, the bid deposits for those who did not receive the bid are returned.

Board of Education Liquor Deposit Fund – To account for the collection of fees derived from a wholesale beer and liquor occupation tax imposed on any person who engages in the manufacture or distribution of beer or liquors, or selling at retail of alcoholic beverages within the City limit. The tax rates are controlled by the State of Nebraska. These license fees are remitted to the Omaha Public Schools Board of Education, through the Douglas County Treasurer via wire transfer, on a quarterly basis.


Agency Funds

177

Board of Education Tobacco Deposit Fund – To account for license fees from retailers for all tobacco sales, including a separate permit fee for the operation of any machine, which upon insertion of a coin or substitute object operates or may be operated to dispense tobacco products. These license fees are remitted to the Omaha Public Schools Board of Education, through the Douglas County Treasurer via wire transfer, on a quarterly basis.

Humane Society Kennel Permits Fund – To account for collection of kennel permits and licenses from citizens. Receipts are remitted to the Humane Society on a quarterly basis.

Sales Tax Deposit Fund – To account for all sales tax receipts collected by the City, which are imposed upon sales transactions within the corporate limits of the City in accordance with the Nebraska Tax Revenue Act of 1967. The State portion of the sales tax is remitted to the Nebraska Department of Revenue on a monthly basis.

After Hours Dance Deposit Fund – To account for money collected through Section 5-64 of the Omaha Municipal Code, in which the City requires a $5,000 bond to be posted when a business is granted an after-hours dance permit.

Board of Education Parking Fines Fund – To account for moneys collected by the City Cashier for parking violation fines, which are remitted to the Omaha Public Schools Board of Education through the Douglas County Treasurer, via wire transfer, on a quarterly basis.

Park Development Deposits Fund – To account for the receipts received for neighborhood parks to be built within suburban Omaha in the future. In addition, subdivision agreements include provision for deposits to be made to the fund at appropriate debt to value intervals.

Arterial Street Improvement Program Fund – To collect and distribute funds for the design and construction of arterial street improvements in the unincorporated portions of Douglas County. These funds are collected on behalf of Douglas County and are remitted on an as-requested basis to the County.

R/D #102 First National Processing Center – To account for the tax increment financing revenues collected in regards to the First National Bank Data Center TIF project.

Demolition Performance Bond Fund – To hold moneys where citizens post a deposit for the demolition of dilapidated structures. Before the demolition fee is refunded, a visual inspection is done to insure proper cleanup of the demolition site.

Performance Bond Fund – To hold deposits received in the form of a bond or cashier’s check from vendors whose bid was accepted to provide services, i.e., professional or construction, to the City of Omaha. Upon satisfactory completion of the contracted services, the bond deposit is returned to the vendor. If the vendor fails to satisfactorily complete the contracted services, the bonding company is then responsible for finding another vendor to complete the contracted services.

TIF Projects Contribution Fund – To account for the contributions received from redevelopment projects on certain locations for the purpose of defraying costs of improvements to those locations. This special revenue fund was created to record contributions collected on TIF projects in accordance with the existing redevelopment agreements.


Combining Statement of Fiduciary Assets and Liabilities

Agency Funds

December 31, 2014

178

R/D #126 R/D #132 R/D #122 R/D #77First ConAgra TIF Bond TIF First National Hammons/ Appeal

National Campus & Debt Redevelopment Bank Child Embassy BondAssets Bank Tower Parking Service Projects Care Facility Suites Deposit

Cash and pooled investments $ 1,207,907 76,035 2,019,099 504,760 - 10,977 2,850 Accounts receivable (net of allowance for uncollectibles) - - - - - - - Due from other funds - - - - - - - Accrued interest - - 575 - - - - Investments - - 1,185,514 - - - -

Total assets $ 1,207,907 76,035 3,205,188 504,760 - 10,977 2,850

LiabilitiesAccounts payable and other liabilities $ 1,207,907 76,035 3,205,188 504,760 - 10,977 2,850 Due to other funds - - - - - - -

Total liabilities $ 1,207,907 76,035 3,205,188 504,760 - 10,977 2,850



Agency Funds

December 31, 2014

179

Board of Board of Humane After Board ofAutomobile Education Education Society Hours EducationImpounding Bid Liquor Tobacco Kennel Sales Tax Dance Parking

Assets Deposit Deposit Deposit Deposit Permits Deposit Deposit Fines

Cash and pooled investments $ 100,750 96,088 144,438 9,373 1,000 72 5,000 72,066 Accounts receivable (net of allowance for uncollectibles) - - 2,225 2,045 500 19,168 - - Due from other funds - - - - - - - 7,600 Accrued interest - - - - - - - - Investments - - - - - - - -

Total assets $ 100,750 96,088 146,663 11,418 1,500 19,240 5,000 79,666

LiabilitiesAccounts payable and other liabilities $ 100,750 96,088 146,663 11,418 1,500 11,640 5,000 79,666 Due to other funds - - - - - 7,600 - -

Total liabilities $ 100,750 96,088 146,663 11,418 1,500 19,240 5,000 79,666



Agency Funds

December 31, 2014

180

Arterial R/D #102Park Street First National Demolition TIF

Development Improvement Processing Performance Performance Projects TotalAssets Deposits Program Center Bond Bonds Contribution Agency

Cash and pooled investments $ 135,711 10,378,519 6,833 1,000 40,900 246,834 15,060,212 Accounts receivable (net of allowance for uncollectibles) - - - - - - 23,938 Due from other funds - - - - - - 7,600 Accrued interest - - - - - - 575 Investments - - - - - - 1,185,514

Total assets $ 135,711 10,378,519 6,833 1,000 40,900 246,834 16,277,839

Liabilities Accounts payable and other liabilities $ 135,711 10,378,519 6,833 1,000 40,900 246,834 16,270,239 Due to other funds - - - - - - 7,600

Total liabilities $ 135,711 10,378,519 6,833 1,000 40,900 246,834 16,277,839


Combining Statement of Changes in Fiduciary Assets and Liabilities

Agency Funds


181

Balance, Balance,January 1, December 31,

2014 Additions Deductions 2014R/D #126 First National Bank Tower

Assets:

Cash and pooled investments $ 829,252 5,788,821 5,410,166 1,207,907 Liabilities:

Accounts payable and other liabilities $ 829,252 379,555 900 1,207,907

R/D #132 ConAgra Campus and ParkingAssets:

Cash and pooled investments $ 1,513,360 1,589,395 3,026,720 76,035 Liabilities:

Accounts payable and other liabilities $ 1,513,360 1,588,895 3,026,220 76,035 TIF Bond Debt Service

Assets:Cash and pooled investments $ 1,694,637 3,330,103 3,005,641 2,019,099 Investments 1,168,831 17,441 758 1,185,514 Accrued interest 575 - - 575

$ 2,864,043 3,347,544 3,006,399 3,205,188 Liabilities:

Accounts payable and other liabilities $ 2,864,043 1,955,426 1,614,281 3,205,188 TIF Redevelopment Projects

Assets:Cash and pooled investments $ 344,608 43,762,035 43,601,883 504,760

Liabilities:

Accounts payable and other liabilities $ 344,608 22,689,101 22,528,949 504,760 R/D #122 First National Bank Child Care FacilityAssets:

Cash and pooled investments $ - 82,828 82,828 - Liabilities:

Accounts payable and other liabilities $ - 41,414 41,414 - R/D #77 Hammons/Embassy Suites

Assets:Cash and pooled investments $ 723,644 745,598 1,458,265 10,977

Liabilities:Accounts payable and other liabilities $ 723,644 734,621 1,447,288 10,977

Appeal Bond DepositAssets:

Cash and pooled investments $ 2,800 877 827 2,850 Liabilities:

Accounts payable and other liabilities $ 2,800 877 827 2,850



Agency Funds


182


2014 Additions Deductions 2014

Assets:Cash and pooled investments $ 80,169 56,834 36,253 100,750

Liabilities:Accounts payable and other liabilities $ 80,169 56,834 36,253 100,750

Bid DepositAssets:

Cash and pooled investments $ 91,630 766,842 762,384 96,088 Liabilities:

Accounts payable and other liabilities $ 91,630 776,160 771,702 96,088 Board of Education Liquor Deposit

Assets:Cash and pooled investments $ 273,142 682,033 810,737 144,438 Accounts receivable 2,400 305,205 305,380 2,225

$ 275,542 987,238 1,116,117 146,663 Liabilities:

Accounts payable and other liabilities $ 275,542 569,425 698,304 146,663 Board of Education Tobacco Deposit

Assets:Cash and pooled investments $ 20,503 35,068 46,198 9,373 Accounts receivable 1,965 14,066 13,986 2,045

$ 22,468 49,134 60,184 11,418 Liabilities:

Accounts payable and other liabilities $ 22,468 25,072 36,122 11,418 Humane Society Kennel Permits

Assets:Cash and pooled investments $ 2,800 4,600 6,400 1,000 Accounts receivable 400 1,500 1,400 500

$ 3,200 6,100 7,800 1,500 Liabilities:

Accounts payable and other liabilities $ 3,200 2,900 4,600 1,500 Sales Tax Deposit

Assets:Cash and pooled investments $ 27 673,804 673,759 72 Accounts receivable 17,979 124,357 123,168 19,168

$ 18,006 798,161 796,927 19,240 Liabilities:

Accounts payable and other liabilities $ (844) 667,846 655,362 11,640 Due to other funds 18,850 7,600 18,850 7,600

18,006 675,446 674,212 19,240 After Hours Dance Deposit

Assets:Cash and pooled investments $ 5,000 411 411 5,000

Liabilities:Accounts payable and other liabilities $ 5,000 411 411 5,000

Automobile Impounding Deposit



Agency Funds


183


2014 Additions Deductions 2014Board of Education Parking Fines

Assets:Cash and pooled investments $ 249,033 690,935 867,902 72,066 Due from other funds 18,850 7,600 18,850 7,600

$ 267,883 698,535 886,752 79,666 Liabilities:

Accounts payable and other liabilities $ 267,883 485,548 673,765 79,666 Park Development Deposits

Assets:Cash and pooled investments $ 565,791 1,178,855 1,608,935 135,711

Liabilities:Accounts payable and other liabilities $ 565,791 1,306,925 1,737,005 135,711

Arterial Street Improvement ProgramAssets:

Cash and pooled investments $ 8,013,637 2,674,274 309,392 10,378,519 Liabilities:

Accounts payable and other liabilities $ 8,013,637 2,773,502 408,620 10,378,519 R/D #102 First National Processing Center

Assets:Cash and pooled investments $ - 6,833 - 6,833

Liabilities:Accounts payable and other liabilities $ - 6,833 - 6,833

Demolition Performance BondAssets:


Accounts payable and other liabilities $ 17,450 88,150 104,600 1,000 Performance Bond

Assets:Cash and pooled investments $ 28,000 68,900 56,000 40,900

Liabilities:Accounts payable and other liabilities $ 28,000 68,900 56,000 40,900

TIF Projects ContributionAssets:


Accounts payable and other liabilities $ 124,000 135,000 12,166 246,834 Total Agency Funds

Assets:Cash and pooled investments $ 14,579,483 62,424,362 61,943,633 15,060,212 Accounts receivable 22,744 445,128 443,934 23,938 Due from other funds 18,850 7,600 18,850 7,600 Accrued interest 575 - - 575 Investments 1,168,831 17,441 758 1,185,514

Total assets $ 15,790,483 62,894,531 62,407,175 16,277,839 Liabilities:

Accounts payable and other liabilities $ 15,771,633 34,353,395 33,854,789 16,270,239 Due to other funds 18,850 7,600 18,850 7,600

Total liabilities $ 15,790,483 34,360,995 33,873,639 16,277,839

STATISTICAL SECTION


Statistical Section (Unaudited)

December 31, 2014

184

This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents Page

Financial Trends

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 185

Revenue Capacity

These schedules control information to help the reader assess the City’s most significant local revenue sources: property tax and sales tax. 191

Debt Capacity

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 198

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 205

Operating Information

These schedules contain service and infrastructure data to help the readers understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 208

Sources: Unless otherwise noted, the information in these pages is derived from the comprehensive financial reports for the relevant year.

Schedule 1

City of Omaha, Nebraska Net Position by Component

Last Ten Fiscal Years

(Accrual Basis of Accounting)

2005 2006 2007 2008

Governmental activities:Net investment in capital assets $ 213,958,527 237,357,059 261,308,456 295,937,697 Restricted 13,163,721 14,612,499 16,814,445 15,189,807 Unrestricted 80,623,315 60,396,134 49,343,457 (540,888)

Total governmentalactivities net position $ 307,745,563 312,365,692 327,466,358 310,586,616

Business-type activities:Net investment in capital assets $ 261,232,484 244,078,865 222,456,144 235,667,494 Restricted 10,135,739 12,362,000 6,898,070 4,248,375 Unrestricted (2,984,272) 10,157,757 40,308,588 23,937,327

Total business-typeactivities net position $ 268,383,951 266,598,622 269,662,802 263,853,196

Primary government:Net investment in capital assets $ 475,191,011 481,435,924 483,764,600 531,605,191 Restricted 23,299,460 26,974,499 23,712,515 19,438,182 Unrestricted 77,639,043 70,553,891 89,652,045 23,396,439

Total primary governmentnet position $ 576,129,514 578,964,314 597,129,160 574,439,812

GASB 34 was adopted in 2002.

Source: City of Omaha Financial Statements.

In 2014, adjustments applicable to prior years were made for property tax receivables, unavailable revenues, and capital assets. Net position balances prior to 2014 have not been changed within this schedule for these adjustments

185

2009 2010 2011 2012 2013 2014

$ 309,036,583 327,786,022 352,248,316 359,649,050 363,088,678 418,572,319 8,238,405 6,350,609 6,565,759 17,390,845 15,812,979 130,831,416

(24,680,926) (87,779,242) (158,706,845) (209,477,684) (233,375,320) (389,282,348)

$ 292,594,062 246,357,389 200,107,230 167,562,211 145,526,337 160,121,387

$ 228,900,267 195,594,307 166,025,886 136,922,155 214,916,418 186,069,768 8,253,046 31,292,774 40,374,573 43,439,439 42,844,357 22,011,634

25,401,260 37,903,634 64,678,906 99,378,150 36,145,215 127,571,758

$ 262,554,573 264,790,715 271,079,365 279,739,744 293,905,990 335,653,160

$ 537,936,850 523,380,329 518,274,202 496,571,205 578,015,096 604,642,087 16,491,451 37,643,383 46,940,332 60,830,284 58,657,336 152,843,050

720,334 (49,875,608) (94,027,939) (110,099,534) (197,230,105) (261,710,590)

$ 555,148,635 511,148,104 471,186,595 447,301,955 439,442,327 495,774,547

Schedule 2

City of Omaha, Nebraska Changes in Net Position



2005 2006 2007 2008Expenses:

Governmental activities:General government $ 43,617,209 40,179,313 93,334,595 95,914,300 Public safety 172,241,162 193,303,487 182,854,883 205,824,014 Transportation services 44,550,196 47,021,969 53,248,665 60,683,765 Other public services 14,185,823 14,797,970 15,650,815 17,366,093 Community development 27,550,352 19,774,789 19,460,381 25,723,952 Culture and parks 33,992,416 37,818,310 44,894,282 40,980,138 Interest on long-term debt 32,326,682 32,437,752 34,696,594 36,519,588

Total governmental activities expenses 368,463,840 385,333,590 444,140,215 483,011,850 Business-type activities:

Convention center hotel 12,008,197 11,591,414 11,290,566 11,114,593 Sewer 38,084,381 39,582,646 45,508,217 49,533,194 Other 11,807,899 11,680,369 11,377,633 12,155,403

Total business-type activities expenses 61,900,477 62,854,429 68,176,416 72,803,190 Total primary government $ 430,364,317 448,188,019 512,316,631 555,815,040

Component units:MECA & Heartland Workforce Solutions $ 20,532,090 22,647,661 25,035,984 27,211,194

Program revenues:Governmental activities:

Charges for services:General government $ 8,430,849 8,098,358 5,854,592 5,729,600 Public safety 8,869,544 8,941,612 15,205,428 15,812,344 Transportation services 14,022,227 15,604,717 18,133,477 18,848,115 Other public services 5,367,287 3,286,082 9,620,112 6,205,471 Community development 11,118,776 10,757,992 8,343,329 6,397,642 Culture and parks 6,598,990 11,881,082 4,789,667 3,545,845

Operating grants and contributions 58,198,805 52,895,766 76,410,773 82,615,753 Capital grants and contributions 32,117,784 17,134,301 29,598,164 30,129,275

Total governmental activitiesprogram revenues 144,724,262 128,599,910 167,955,542 169,284,045

Business-type activities:Charges for services:

Convention center hotel 4,623,041 6,447,117 7,732,472 8,918,038 Parking 3,749,533 3,790,010 4,151,923 4,115,811 Sewer revenue fund 33,328,738 34,892,510 38,474,534 41,194,630 Citywide sports 145,468 153,668 117,543 148,420 Marinas 395,825 786,525 737,166 550,236 Tennis operations 237,017 270,768 248,238 267,683 Golf operations and concessions 3,311,079 3,406,750 3,537,287 3,441,617 Air quality 512,456 536,475 532,192 509,037 Compost 756,279 798,411 756,900 561,151 Printing and graphics 478,632 515,262 528,309 543,339 River front plaza and marina 20,661 31,011 85,482 38,350

Operating grants and contributions - - - - Capital grants and contributions 5,795,266 9,011,366 4,486,724 4,565,282

Total business-type activitiesprogram revenues 53,353,995 60,639,873 61,388,770 64,853,594

Total primary government $ 198,078,257 189,239,783 229,344,312 234,137,639

186

2009 2010 2011 2012 2013 2014

$ 100,443,246 116,720,038 102,690,207 108,841,189 91,390,308 83,925,873 188,694,996 193,001,551 216,023,998 221,081,828 230,254,594 235,395,146 61,124,356 60,380,233 61,355,661 63,844,036 71,625,887 70,582,625 17,355,052 21,001,115 34,196,504 30,052,963 28,740,801 23,090,607 27,376,811 31,987,295 31,619,209 27,254,620 28,867,688 33,123,570 47,480,688 64,931,722 60,697,876 49,472,973 49,340,930 51,983,977 37,443,658 38,360,978 35,225,037 33,961,782 31,203,115 30,319,426

479,918,807 526,382,932 541,808,492 534,509,391 531,423,323 528,421,224

10,172,478 8,905,205 10,064,689 16,760,156 15,712,726 15,546,907 47,580,754 51,529,157 56,781,587 62,037,663 64,709,568 71,915,197 12,122,555 10,744,969 13,505,316 13,226,801 16,045,767 14,770,604 69,875,787 71,179,331 80,351,592 92,024,620 96,468,061 102,232,708

$ 549,794,594 597,562,263 622,160,084 626,534,011 627,891,384 630,653,932

27,425,166 26,355,147 40,381,582 44,898,851 44,607,103 44,147,789

$ 8,560,906 11,432,415 9,482,548 3,639,384 3,693,496 7,067,312 14,736,190 18,373,482 16,902,557 16,269,792 17,079,473 24,978,154 19,092,487 22,167,354 28,495,842 34,946,985 33,889,943 16,185,140 3,877,405 2,582,651 2,968,813 4,106,470 3,420,354 7,105,263 7,465,072 5,748,813 10,553,850 11,836,131 21,003,207 20,290,498

10,177,203 8,772,389 9,894,853 13,412,015 11,027,280 12,919,954 70,638,578 65,624,631 81,334,162 70,615,981 64,458,307 55,761,435 27,255,802 31,671,217 1,991,113 2,111,413 1,383,647 3,272,418

161,803,643 166,372,952 161,623,738 156,938,171 155,955,707 147,580,174

6,819,371 7,824,146 6,765,385 11,147,600 11,892,337 12,616,329 4,144,920 4,170,400 4,230,566 4,064,700 6,266,862 7,285,311

43,633,767 49,944,627 60,461,497 72,391,970 88,339,205 107,872,946 130,940 193,202 151,708 292,769 344,704 363,430 486,878 446,039 397,457 603,435 619,904 581,984 268,028 263,691 259,872 256,924 269,595 266,099

3,644,417 3,421,704 3,347,221 3,713,606 3,814,386 4,075,029 537,111 802,199 689,868 759,500 752,083 744,000 769,070 835,696 322,717 1,072,270 832,054 - 551,847 474,093 348,389 499,711 412,301 356,682 40,179 48,532 34,612 46,725 42,980 59,510

- - 711,466 929,479 - 691,787 5,491,917 - - 1,336,274 967,081 5,761,604

66,518,445 68,424,329 77,720,758 97,114,963 114,553,492 140,674,711 $ 228,322,088 234,797,281 239,344,496 254,053,134 270,509,199 288,254,885

Schedule 2

City of Omaha, Nebraska Changes in Net Position - Continued



2005 2006 2007 2008

Component units:MECA & Heartland Workforce Solutions:

Charges for services $ 20,754,599 23,467,353 24,863,872 29,865,018 Operating grants and contributions 1,500,000 1,500,000 1,500,000 1,815,000

Total component unit revenues $ 22,254,599 24,967,353 26,363,872 31,680,018

Net revenue (expense):Governmental activities $ (223,739,578) (256,733,680) (276,184,673) (313,727,805) Business-type activities (8,546,482) (2,214,556) (6,787,646) (7,949,596)

Total primary government $ (232,286,060) (258,948,236) (282,972,319) (321,677,401)


187

2009 2010 2011 2012 2013 2014

$ 30,629,846 28,717,594 39,797,000 42,570,030 42,769,020 41,933,731 - - 1,023,608 3,813,685 3,400,987 2,693,627

$ 30,629,846 28,717,594 40,820,608 46,383,715 46,170,007 44,627,358

$ (318,115,164) (360,009,980) (380,184,754) (377,571,220) (375,467,616) (380,841,050) (3,357,342) (2,755,002) (2,630,834) 5,090,343 18,085,431 38,442,003

$ (321,472,506) (362,764,982) (382,815,588) (372,480,877) (357,382,185) (342,399,047)

$ 3,204,680 2,362,447 439,026 1,484,864 1,562,904 479,569

Schedule 2

City of Omaha, Nebraska Changes in Net Position - Continued



2005 2006 2007 2008

General revenues and other changes in net position:Governmental activities:

Taxes:Property tax $ 94,292,799 99,432,780 114,935,220 118,979,538 Motor vehicle tax 9,030,957 8,818,011 8,825,629 9,374,405 Sales and use tax 114,184,544 113,625,998 116,051,364 124,470,354 Business taxes 26,845,997 28,781,008 30,884,535 33,963,566 Payments in lieu of taxes 5,575,592 5,259,341 5,543,008 5,898,722

Unrestricted investment earnings 2,298,930 5,446,225 6,722,915 4,720,079 Sale of capital assets 1,781,215 (63,554) (143,254) - Transfers (1,112,967) 54,000 (1,385,123) (558,601)

Total governmental activities 252,897,067 261,353,809 281,434,294 296,848,063

Business-type activities:Unrestricted investment earnings 657,991 483,227 2,810,340 1,581,389 Sale of capital assets 2,761 - (13,447) - Miscellaneous - - - - Transfers 1,112,967 (54,000) 1,385,123 558,601

Total business-type activities 1,773,719 429,227 4,182,016 2,139,990

Total $ 254,670,786 261,783,036 285,616,310 298,988,053

Component units:MECA & Heartland Workforce Solutions:

Donations not restricted to specific programs $ 1,848,013 2,129,239 2,562,289 - Unrestricted investment earnings 229,544 615,691 821,148 984,508

$ 2,077,557 2,744,930 3,383,437 984,508

Change in net position:Governmental activities $ 29,157,489 4,620,129 5,249,621 (16,879,742) Business-type activities (6,772,763) (1,785,329) (2,605,630) (5,809,606)

Total $ 22,384,726 2,834,800 2,643,991 (22,689,348)


Net position, beginning of yearGovernmental activities $ 278,588,074 307,745,563 322,216,737 327,466,358 Business-type activities 275,156,714 268,383,951 272,268,432 269,662,802

Total $ 553,744,788 576,129,514 594,485,169 597,129,160


Net position, end of year:Governmental activities $ 307,745,563 312,365,692 327,466,358 310,586,616 Business-type activities 268,383,951 266,598,622 269,662,802 263,853,196

Total $ 576,129,514 578,964,314 597,129,160 574,439,812

Component units:

MECA & Heartland Workforce Solutions $ 8,192,434 13,257,056 17,968,381 23,421,713

Source: City of Omaha Financial Statements. ¹. The end balance in 2006 for the City does not match the 2007 beginning balance because it was restated to include the

annexation of Elkhorn. 2. Beginning in 2011, the City began reporting Heartland Workforce Solutions as an additional component unit. 3. The end balance in 2012 for the City does not match the 2013 beginning balance due to the restatement for the

implementation of GASB Statement No. 65. 4. The end balance in 2013 for the City does not match the 2014 beginning balance due the restatement of property tax

revenue recognition and the restatement of capital contributions for governmental activities in 2014.

188

2009 2010 2011 2012 2013 2014

$ 130,016,943 138,320,939 139,574,325 141,765,319 142,350,476 144,656,976 9,299,184 9,309,995 9,068,784 9,163,518 9,839,552 10,338,405

120,735,362 126,910,238 126,636,793 128,379,322 136,693,604 142,645,168 34,251,049 38,228,765 60,121,479 62,341,910 66,484,605 67,972,149 4,595,289 4,538,014 4,870,216 4,174,522 5,085,338 5,666,434 1,663,491 1,440,989 2,008,143 2,365,086 396,792 1,596,581 1,290,879 (252,225) - - - -

(1,729,587) (4,723,408) (8,345,147) (3,163,477) (515,017) (2,037,726)

300,122,610 313,773,307 333,934,593 345,026,200 360,335,350 370,837,987

328,132 267,736 574,337 406,561 (43,612) 416,708 - - (345,700) - - - - - - - - 840,733

1,729,587 4,723,408 8,345,147 3,163,477 515,017 2,037,726

2,057,719 4,991,144 8,573,784 3,570,038 471,405 3,295,167

$ 302,180,329 318,764,451 342,508,377 348,596,238 360,806,755 374,133,154

$ - - - - - - 506,343 - 112,275 80,648 115,488 99,782

$ 506,343 - 112,275 80,648 115,488 99,782

$ (17,992,554) (46,236,673) (46,250,161) (32,545,020) (15,132,266) (10,003,063) (1,298,623) 2,236,142 6,288,650 8,660,382 18,556,836 41,737,170

$ (19,291,177) (44,000,531) (39,961,511) (23,884,638) 3,424,570 31,734,107

$ 3,711,023 2,362,447 551,301 1,565,512 1,678,392 579,351

$ 310,586,616 292,594,062 246,357,392 200,107,231 160,658,603 170,124,450 263,853,196 262,554,573 264,790,715 271,079,362 275,359,154 293,915,990

$ 574,439,812 555,148,635 511,148,107 471,186,593 436,017,757 464,040,440

$ 23,421,713 27,132,736 29,495,183 30,046,484 31,611,996 33,290,388

$ 292,594,062 246,357,389 200,107,231 167,562,211 145,526,337 160,121,387 262,554,573 264,790,715 271,079,365 279,739,744 293,915,990 335,653,160

$ 555,148,635 511,148,104 471,186,596 447,301,955 439,442,327 495,774,547

27,132,736 29,495,183 30,046,484 31,611,996 33,290,388 33,869,739

Schedule 3

City of Omaha, Nebraska Fund Balances of Governmental Funds


(Modified Accrual Basis of Accounting)

2005 2006 2007 2008

General fund:Reserved $ 3,550,983 4,492,350 1,896,788 2,810,463 Unreserved 29,222,049 28,415,728 27,071,866 28,855,951 Nonspendable - - - - Restricted - - - - Assigned - - - - Unassigned - - - -

Total general fund $ 32,773,032 32,908,078 28,968,654 31,666,414

All other governmental funds:Reserved $ 48,781,150 65,570,634 55,180,529 42,178,023 Unreserved, reported in:

Special revenue funds 21,200,398 24,558,745 27,285,911 19,190,703 Capital projects funds 16,307,510 (23,163,386) (2,097,906) (15,493,032) Permanent funds 1,848 360 4,058 4,525

Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - -

Total all othergovernmental funds $ 86,290,906 66,966,353 80,372,592 45,880,219


* Beginning in 2011, the City adopted GASB 54 which adjusted the fund balance classifications names and definitions for all governmental funds.

189

` 2009 2010 2011 2012 2013 2014

$ 3,921,976 3,637,299 - - - - 24,167,995 25,940,212 - - - -

- - 2,246,558 2,320,144 2,301,101 2,390,388 - - 709,301 747,561 853,190 889,911 - - 8,391,106 7,233,035 848,127 5,397,753 - - 32,595,155 37,608,141 52,622,429 59,788,477

$ 28,089,971 29,577,511 43,942,120 47,908,881 56,624,847 68,466,529

$ 44,190,404 40,659,061 - - - -

4,876,004 5,273,301 - - - - 35,431,679 17,252,775 - - - -

539,208 428,925 - - - - - - 2,775,389 2,775,389 2,775,389 3,274,288 - - 38,509,089 53,513,385 42,613,307 66,730,475 - - 18,252,217 18,704,036 20,593,562 13,106,594 - - 1,676,859 6,691,614 4,732,086 636,511 - - (41,915,268) (13,987,312) (9,824,485) (6,531,545)

$ 85,037,295 63,614,062 19,298,286 67,697,112 60,889,859 77,216,323

Schedule 4

City of Omaha, Nebraska Changes Fund Balances of Governmental Funds



2005 2006 2007 2008Revenues:

Taxes:Property $ 89,341,424 94,917,441 102,681,478 112,384,610 Motor vehicle 9,030,957 8,818,011 8,825,629 9,374,405 City sales and use 114,184,544 113,625,998 116,051,364 124,470,354 Business 26,845,997 28,781,008 30,884,535 34,249,571 In lieu 5,575,592 5,259,341 5,543,008 5,898,722

Licenses and permits 8,248,962 8,216,566 8,044,824 8,022,731 Intergovernmental 47,399,603 43,152,752 48,850,176 41,275,818 Investment income 2,298,930 5,446,225 6,722,915 4,720,079 Revenue from Keno 6,209,779 6,811,365 7,693,010 7,455,212 Charges for services 38,807,379 39,246,354 45,727,075 45,777,345 Rents, royalties and other 2,487,922 2,521,666 5,353,045 2,726,418 Contributions and grants 31,790,177 19,733,628 48,985,045 56,815,186

Total revenues 382,221,266 376,530,355 435,362,104 453,170,451 Expenditures:

Current:General government 30,437,115 35,503,736 40,689,673 52,797,201 Public safety 164,988,313 174,588,175 183,747,875 197,108,649 Transportation services 37,312,546 39,232,879 43,421,768 48,623,732 Other public services 13,928,763 14,364,818 14,750,946 16,929,963 Community development 27,680,503 19,346,165 18,744,993 25,035,148 Culture and parks 31,431,397 28,351,405 31,551,223 30,321,658

Debt service:Principal 25,925,284 28,511,654 42,832,712 72,787,515 Interest 31,086,344 31,506,802 33,532,480 34,954,674 Bond issuance costs 302,799 161,026 303,209 1,346,460

Capital outlay 47,748,502 42,654,753 58,734,797 76,692,920 Total expenditures 410,841,566 414,221,413 468,309,676 556,597,920 Deficiency of revenues

under expenditures (28,620,300) (37,691,058) (32,947,572) (103,427,469) Other financing sources (uses):

Transfers in 750,000 654,000 1,434,525 679,238 Transfers out (1,862,967) (600,000) (2,819,648) (1,237,839) Sales of capital assets 1,877,271 - - 421,700 Issuance of debt 47,369,296 18,521,516 57,565,000 146,483,605 Issuance of refunding debt 6,890,000 11,425,000 - - Premium on debt issued 543,236 168,836 671,698 4,350,806 Payment to escrow agent (6,935,000) (11,667,801) (17,900,194) (79,064,654) Discount on debt issued - - - -

Total other financingsources 48,631,836 18,501,551 38,951,381 71,632,856

Net change in fund balances $ 20,011,536 (19,189,507) 6,003,809 (31,794,613)

Debt Service as a percentage ofnoncapital expenditures 15.70% 16.15% 18.64% 22.45%


190

2009 2010 2011 2012 2013 2014

$ 117,561,400 130,625,280 135,175,220 140,715,380 142,356,535 141,195,508 9,299,184 9,309,995 9,068,784 9,163,518 9,839,552 10,338,405

120,735,362 126,910,238 126,636,793 128,379,322 136,693,604 142,645,168 34,251,051 38,228,765 60,121,478 62,331,646 66,482,755 67,979,140 4,590,903 4,538,013 4,870,216 4,174,522 5,085,338 5,666,434 7,125,362 8,447,524 8,627,683 9,953,636 12,690,376 11,219,057

37,433,627 38,943,475 39,289,990 41,896,021 43,962,013 45,396,325 1,663,490 1,291,935 1,834,089 2,133,506 396,793 1,596,581 6,195,196 6,959,045 7,222,115 7,220,283 7,568,495 7,722,991

61,279,668 49,441,858 53,453,047 54,709,031 51,118,569 54,584,845 1,459,459 2,388,690 2,066,022 22,628,777 2,213,984 3,066,532

41,657,358 44,964,597 44,972,195 52,404,647 48,134,603 41,266,495 443,252,060 462,049,415 493,337,632 535,710,289 526,542,617 532,677,481

44,237,217 45,480,158 45,478,299 48,389,444 44,398,810 48,004,264 195,327,042 192,681,892 209,513,357 213,748,374 224,066,859 229,072,245 48,208,708 47,095,867 48,800,535 48,966,496 55,910,474 54,390,754 16,403,382 20,012,730 33,340,836 29,513,629 27,526,059 20,525,429 26,735,726 27,990,036 26,808,123 26,243,564 28,095,556 31,630,923 29,906,063 31,916,664 38,392,941 33,807,833 34,352,195 35,656,948

36,895,854 35,934,250 40,000,182 47,062,140 51,224,548 64,980,499 36,899,394 38,360,978 35,225,036 33,803,919 32,872,116 31,734,100 1,271,689 740,548 303,220 973,248 253,321 420,440

64,895,974 79,278,779 55,701,862 32,819,516 41,896,199 31,685,137 500,781,049 519,491,902 533,564,391 515,328,163 540,596,137 548,100,739

(57,528,989) (57,442,487) (40,226,759) 20,382,126 (14,053,520) (15,423,258)

5,570,605 6,442,775 1,845,880 2,326,735 7,078,509 4,520,389 (7,300,192) (11,169,286) (10,191,027) (5,490,210) (7,593,526) (5,833,239) 1,334,919 647,484 12,044,740 658,000 - 1,575,285

91,592,000 77,485,000 27,995,000 77,890,862 15,403,783 19,258,012 45,560,000 - - 35,067,065 10,645,000 51,110,000 4,649,445 2,435,125 1,349,812 8,380,765 1,323,467 11,130,961

(48,297,153) (37,988,113) (22,768,806) (86,845,834) (10,895,000) (49,035,479) - (346,191) - (3,922) - -

93,109,624 37,506,794 10,275,599 31,983,461 15,962,233 32,725,929 $ 35,580,635 (19,935,693) (29,951,160) 52,365,587 1,908,713 17,302,671

16.93% 16.88% 15.74% 16.76% 16.86% 18.73%

Schedule 5

City of Omaha, Nebraska Tax Revenues by Source



Street TelephoneGeneral Highway Occupation

Year Sales Tax Property Tax Allocation Tax Wheel Tax

2005 $ 120,873,521 $ 88,660,364 $ 25,503,946 $ 13,725,215 $ 11,896,323 2006 122,721,806 93,165,028 24,790,938 14,352,217 11,751,030 2007 128,625,275 98,142,156 28,638,167 14,965,695 14,934,190 2008 131,801,803 109,912,905 29,459,975 15,932,992 15,525,838 2009 127,301,965 115,586,354 27,572,563 15,746,026 15,638,431 2010 131,455,524 128,501,803 27,674,536 14,815,170 18,348,772 2011 133,278,455 133,399,969 30,371,268 14,963,767 23,247,322 2012 128,379,322 138,875,565 32,452,013 16,254,082 22,870,980 2013 136,693,604 139,940,082 34,215,504 15,330,236 19,659,390 2014 142,645,168 138,883,919 37,673,381 14,263,312 19,943,832


191

Motor Hotel/Vehicle MUD CableVehicle Occupation in Lieu Franchise RestaurantTaxes Tax of Tax Tax Tax

$ 8,808,677 $ 5,435,528 $ 6,360,672 $ 3,589,703 $ - 8,818,011 5,989,404 5,056,174 4,048,296 - 8,825,629 6,990,559 5,229,233 4,312,349 - 9,374,405 8,310,620 5,714,591 4,727,391 - 9,299,184 8,087,878 4,411,087 4,952,987 - 9,309,995 8,162,031 4,356,585 5,198,243 4,419,993 9,068,784 9,314,653 4,362,256 5,617,734 23,796,387 9,163,518 7,543,401 3,666,563 5,449,203 24,851,426 9,839,552 7,960,019 4,524,169 5,396,107 25,719,588

10,338,405 8,415,277 5,156,958 5,646,229 26,999,949

Schedule 6

City of Omaha, Nebraska Assessed Value and Estimated

Actual Value of Taxable Property


192

Real Property Other PropertyPersonal/ Total

Residential/ Centrally Taxable TotalCommercial Assessed Assessed Direct

Property Property Value Tax Rate

Year ended December 31:2005 19,561,022,580 1,934,101,080 21,495,123,660 43.3872006 20,407,325,900 1,858,658,545 22,265,984,445 43.3872007 23,466,618,660 1,835,621,110 25,302,239,770 43.3872008 24,851,524,870 1,658,411,000 26,509,935,870 43.3872009 25,148,357,122 1,929,355,078 27,077,712,200 47.5872010 24,966,532,305 1,923,371,175 26,889,903,480 49.9222011 25,675,576,785 1,807,884,970 27,483,461,755 49.9222012 26,035,695,300 1,877,985,140 27,913,680,440 49.9222013 25,891,486,245 1,911,962,630 27,803,448,875 49.9222014 26,951,266,975 2,009,897,245 28,961,164,220 48.922

Source: Douglas County Assessor’s Office.

Note Property is assessed at actual value; therefore, the assessed values are equal to actual value. Taxes assessed by the County during 2014 are not due and payable until 2015.

Schedule 7

City of Omaha, Nebraska Property Tax Rates

Direct and Overlapping Governments


2014 2013 2012 2011

City of Omaha:General fund 0.26597 0.28447 0.28447 0.28447 Judgment 0.00600 0.00600 0.00600 0.00600 Debt service 0.20131 0.19281 0.19281 0.19281 Redevelopment debt service 0.01594 0.01594 0.01594 0.01594

Total City of Omaha 0.48922 0.49922 0.49922 0.49922

Overlapping rates1:

Douglas County 0.28059 0.28059 0.26459 0.26459 Omaha Douglas Building Commission 0.01500 0.01290 0.01300 0.01300 Papio NRD 0.03276 0.03275 0.03275 0.03275 Omaha Public Schools 0.24833 0.25204 0.25465 0.25909 Metro Community College 0.09500 0.09500 0.08500 0.08500 Education Service Units 0.01499 0.01563 0.01500 0.01500 Omaha Transit Authority 0.05270 0.05224 0.05027 0.04872 Learning Community 0.96000 0.96000 0.96000 0.96000 Learning Community – capital projects - - - 0.00125

Total overlapping rates 1.69937 1.70115 1.67526 1.67940

Total tax rate 2.18859 2.20037 2.17448 2.17862

Sources: Douglas County Clerk’s Office and City of Omaha Finance Department.

Note: 1 Overlapping rates are those of local and county governments that apply to property owners within the City of Omaha.

193

2010 2009 2008 2007 2006 2005

0.28447 0.26112 0.24312 0.24912 0.24912 0.24912 0.00600 0.00600 0.00600 - - - 0.19281 0.19281 0.17581 0.18475 0.18475 0.18475 0.01594 0.01594 0.00894 - - -

0.49922 0.47587 0.43387 0.43387 0.43387 0.43387

0.26459 0.24519 0.24519 0.24519 0.26144 0.26427 0.01300 0.01300 0.01300 0.01096 0.01096 0.01096 0.03275 0.03275 0.03375 0.03485 0.03844 0.03909 0.25863 0.25572 1.20064 1.20059 1.19930 1.21849 0.08500 0.08500 0.06740 0.06470 0.06470 0.06470 0.01500 0.01500 0.01500 0.01500 0.01500 0.01500 0.04872 0.04674 0.04613 0.04617 0.04871 0.04890 0.96000 0.96000 - - - - 0.00125 0.00500 - - - -

1.67894 1.65840 1.62111 1.61746 1.63855 1.66141

2.17816 2.13427 2.05498 2.05133 2.07242 2.09528

Schedule 8

City of Omaha, Nebraska Principal Property Taxpayers

Current Year and Nine Years Ago

TaxableType of Assessed

Taxpayer Business Value RankFirst Data Corp Payment processing $ 102,122,000 1 0.35 %SFI Ltd Partnership Real estate management 106,161,000 2 0.37First National Bank of Omaha Banking 101,627,700 3 0.35Westroads Mall LLC Retail management 92,602,800 4 0.32United of Omaha Life Insurance Insurance 92,072,000 5 0.32168th and Dodge LP Real estate management 90,337,700 6 0.31Oak View Mall LLC Retail management 85,206,100 7 0.29IRET Properties Real estate investment 81,656,800 8 0.28Nebraska Furniture Mart Retail management 66,198,500 9 0.23Commercial Federal Sav & Loan Banking 48,357,800 10 0.17Conneticut National Bank DeveloperPREFCO ONZE LLC InsuranceSimon Property Group Real estate managementOmaha Real Estate Investment Real estate managementOpis Realty Real estate management $

866,342,400 2.99 %

Source: Douglas County Assessor.

2014Percentageof Total City

TaxableAssessed

Value

194

TaxableAssessed

Value Rank$ 48,221,800 6 0.22 %

82,124,300 2 0.3860,650,400 4 0.2846,831,900 7 0.22

102,718,100 1 0.48

63,155,500 3 0.2950,636,200 5 0.2446,000,000 8 0.2145,133,800 9 0.2143,994,900 10 0.20

$ 589,466,900 2.73 %

2005

ValueAssessedTaxable

of Total CityPercentage

Schedule 9

City of Omaha, Nebraska Property Tax Levies and Collections

Last Ten Fiscal Year

195

Collected Within the CollectionsTaxes Levied Year of the Levy in Subsequent Total collections to Date

for the Percentage Years PercentageFiscal Year Amount of Levy Amount Amount of Levy

Year ended December 31:2005 $ 93,260,893 91,592,309 98.21 $ 1,572,719 93,165,028 99.90%2006 96,605,427 96,518,641 99.91 1,623,515 98,142,156 101.592007 109,778,828 107,891,215 98.28 2,021,690 109,912,905 100.122008 115,018,659 113,644,205 98.81 1,708,782 115,352,987 100.292009 128,854,709 126,195,724 97.94 1,873,134 128,068,858 99.392010 134,239,776 131,111,754 97.67 1,644,917 132,756,671 98.902011 137,202,938 136,885,263 99.77 1,456,009 138,341,272 100.832012 139,350,675 138,009,236 99.04 1,463,387 139,472,713 100.092013 138,800,377 136,839,584 98.59 545,669 137,385,253 98.982014 141,683,808 28,479 0.02 - 28,479 0.02

Note 1: Property taxes are certified in August of each year by the Douglas County Assessor. The taxes are based on cents per $100 of taxable value. Taxes become due on December 31, of that year and may be paid in two equal installments. Taxes become delinquent if not paid by April 1 and August 1. Delinquent taxes bear 14% interest. Prior to 2009, the figures above included interest. The City includes total interest for late payments with taxes on the financial statements.

Note 2: In 2014, the City changed how it accounts for property tax revenues and the figures of the fiscal year 2014 were restated to reflect this change.

Schedule 10

City of Omaha, Nebraska Total City Taxable Sales


196

Total City TotalTaxable DirectSales Tax Rate

Year ended December 31:2005 $ 8,292,560,467 0.01502006 8,413,842,533 0.01502007 8,819,720,867 0.01502008 9,037,369,933 0.01502009 8,736,921,267 0.01502010 9,023,580,333 0.01502011 9,143,290,667 0.01502012 9,630,891,267 0.01502013 10,067,835,399 0.01502014 10,404,045,783 0.0150

Source: City of Omaha Revenue Division.

Schedule 11

City of Omaha, Nebraska Sales Tax Rates

Direct and Overlapping Governments


197

Direct Overlapping1

City of State of TotalOmaha Nebraska Tax Rate

Fiscal year:2005 0.015 0.055 0.0702006 0.015 0.055 0.0702007 0.015 0.055 0.0702008 0.015 0.055 0.0702009 0.015 0.055 0.0702010 0.015 0.055 0.0702011 0.015 0.055 0.0702012 0.015 0.055 0.0702013 0.015 0.055 0.0702014 0.015 0.055 0.070

Note: 1 Overlapping rates are those of other governments that apply to consumers within the City of Omaha.

Schedule 12

City of Omaha, Nebraska Ratios of Outstanding Debt by Type


(Amounts in Thousands, Except per Capita)

Governmental activities

Special

General Tax Assessment

Obligation Supported Notes Revenue Notes Capital

Bonds Bonds Payable Bonds Payable Leases

Fiscal year:2005 $ 484,756 99,524 741 - 3,507 34,102 2006 476,256 97,520 1,025 - 3,305 34,730 2007 536,827 99,040 215 2,350 3,096 37,418 2008 558,062 108,491 706 2,210 2,881 41,312 2009 545,829 110,873 257 2,065 2,658 107,131 2010 526,180 107,306 - 1,920 2,428 141,098 2011 518,750 103,615 - 1,855 2,191 130,603 2012 516,795 100,012 - 1,675 2,947 131,094 2013 490,030 95,072 - 1,490 2,802 126,103 2014 501,765 90,034 - 1,295 2,478 119,402

Note: Details regarding the City’s outstanding debt can be found in the notes to the financial statements. 1 See table 17, Demographic and Economic Statistics, for income and population data.

198

Business-type Activities

Hotel Tax Sewer Sewer Total Bond Total Percentage Net

Revenue Supported Revenue Notes Revenue Capital Premiums Primary of Personal Debt per

Bonds Bonds Bonds Payable Bonds Leases (Discounts), Net Government Income1

Capita1

$ 110,155 20,836 - 17,116 445 49,920 32,798 853,900 4.21 2,017 110,155 20,355 53,170 33,031 305 49,765 32,151 911,768 4.50 2,129 109,750 19,855 54,430 37,056 155 47,815 35,007 983,014 4.85 2,271 109,750 19,335 53,295 34,879 - 46,200 337,305 1,314,426 6.48 2,997 109,750 18,792 82,095 32,628 - 44,505 39,604 1,096,187 5.40 2,411 146,435 18,229 148,074 6,650 - 42,010 39,088 1,179,418 5.81 2,878 145,965 17,639 212,040 13,071 - 39,425 39,446 1,224,600 6.04 2,938 145,325 17,252 302,755 13,455 - 36,765 53,520 1,321,595 6.52 3,154 144,165 16,318 293,560 12,863 - 34,125 50,406 1,266,934 N/A 3,005 142,825 15,366 413,640 12,710 - 31,105 67,625 1,398,245 N/A 3,219

Schedule 13

City of Omaha, Nebraska Ratios of General Obligation Debt Outstanding


199

Ratio of

Net Debt

Less amounts Net to Estimated

General Available in Bonded ValuationObligation Debt Debt per of Taxable

Bonds Service Fund Total Capital1

Real Property2

Fiscal year:2005 $ 484,756,472 $ 18,892,007 $ 465,864,465 1,101 2.172006 476,256,472 11,888,320 464,368,152 1,084 2.092007 536,826,472 16,491,540 520,334,932 1,202 2.062008 558,062,463 18,976,244 539,086,219 1,229 2.032009 545,829,194 13,489,712 532,339,482 1,171 1.972010 526,180,000 16,693,476 509,486,524 1,246 1.892011 518,750,000 18,595,398 500,154,602 1,200 1.822012 516,794,764 18,689,053 498,105,711 1,189 1.782013 490,030,000 15,246,819 474,783,181 1,126 1.712014 501,765,000 14,696,034 487,068,966 1,121 1.68

Note: Details regarding the City’s outstanding debt can be found in the notes to the financial statements. 1 Population data can be found in table 17, Demographic and Economic Statistics. 2 Property value information can be found in table 6, Assessed Value and Actual Value of Taxable

Property.

Schedule 14

City of Omaha, Nebraska Direct and Overlapping Governmental Activities Debt

December 31, 2014

200

Estimated Direct andDebt Percentage Overlapping

Governmental Units Outstanding Applicable1

Debt to the City

Direct:

City4

$ 706,483,481 100.00% $ 706,483,481

Overlapping:Douglas County 59,355,000 74.55 44,249,153

Omaha-Douglas Public Bldg. Commission2

41,750,000 74.55 31,124,625

School District of Omaha3

232,277,989 86.48 200,874,005

School District of Ralston3

25,045,000 100.00 25,045,000

School District of Millard3

147,060,000 80.65 118,603,890

School District of Elkhorn3

163,980,000 50.36 82,580,328

School District No. 66 of Douglas County3

27,160,000 100.00 27,160,000

696,627,989 529,637,001

Total $ 1,403,111,470 $ 1,236,120,482

Source: The information regarding the bonds outstanding comes from the State of Nebraska Auditor of Public Accounts Web site, reported as of December 31, 2014.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and business of the City. This process recognizes that, when considering the government’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, is responsible for repaying the debt, of each overlapping government.

1 The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the City’s taxable assessed value and dividing it by the corresponding overlapping government unit’s taxable assessed value.

2 Payable from certain property tax revenues and payments to be made to it by the City of Omaha and Douglas County under certain contractual agreements. Actual rental payments by the City for 2013 were $1,300,000. The Act authorizing issuance of bonds by the Omaha-Douglas Public Building Commission permits them to levy a tax of $0.17 per $100 of actual valuation on all the taxable property in Douglas County. However, although the same Act authorizes the City to levy a tax on all the taxable property in the City, except intangible property, of $0.17 per $100 of actual valuation in excess of the Charter limitation described under “AUTHORITY TO LEVY TAXES,” if and to the extent necessary to make the City’s payments to the Commission, no such levy has ever been made by the City for such purpose.

3 Residents of the City reside in one of the five school districts and pay taxes only to that school district. These numbers represent bonds outstanding as of December 31, 2014.

4 The debt for the City of Omaha is based on the general obligation debt.

Schedule 15

City of Omaha, Nebraska Legal Debt Margin Information


(Amount in thousands)

2005 2006 2007 2008

Debt limit $ 752,329 779,309 885,578 927,848 Total net debt applicable to limit 465,864 464,368 520,335 539,086

Legal debt margin $ 286,465 314,941 365,243 388,762

Total net debt applicableto the limit as apercentage of debt limit 61.92% 59.59% 58.76% 58.10%

Legal debt margin calculation for fiscal year 2014

Taxable property values:Real estate $ 1,417,423 Personal property 27,543,742

Total assessed value 28,961,165

Debt limit (3.5% of total assessed value) 1,013,641

Debt applicable to limit:General obligation bonds 501,765

Less amount set aside for repaymentof general obligation debt (14,696)

Total net debt applicable to limit 487,069

Legal debt margin $ 526,572

Note: Under Article V. Section 5.27, Home Rule Charter of the City of Omaha, 1956 as amended, the City of Omaha’s outstanding general obligation debt should not exceed 3.5% of the actual value of taxable real and personal property in the City. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

201

2009 2010 2011 2012 2013 2014

$ 947,720 941,147 961,921 961,921 973,121 1,013,641 532,339 509,487 500,154 500,154 474,783 487,069

$ 415,381 431,660 461,767 461,767 498,338 526,572

56.17% 54.13% 52.00% 52.00% 48.79% 48.05%

Schedule 16

City of Omaha, Nebraska Pledge Revenue Coverage


202

Direct NetGross Operating Available Debt Service Requirements

Revenue1

Expenses2

Revenue Principal Interest Total3

CoverageUtility Service

Sewer System Charges

2005 $ 33,279,697 23,515,095 9,764,602 1,439,030 1,512,034 2,951,064 3.312006 34,759,942 24,434,713 10,325,229 2,475,854 2,558,781 5,034,635 2.052007 40,573,046 26,148,634 14,424,412 2,436,679 5,078,921 7,515,600 1.922008 41,969,126 29,381,293 12,587,833 3,832,682 5,080,556 8,913,238 1.412009 43,704,193 29,341,757 14,362,436 3,968,039 4,867,190 8,835,229 1.632010 49,783,043 32,629,953 17,153,090 4,790,945 6,246,860 11,037,805 1.552011 59,414,374 35,082,144 24,332,230 6,183,692 7,670,908 13,854,600 1.762012 73,636,605 35,026,078 38,610,527 9,819,735 7,797,934 17,617,669 2.192013 88,272,211 35,169,996 53,102,215 10,722,865 13,396,933 24,119,798 2.202014 108,956,218 40,610,074 68,346,144 9,255,315 13,426,326 22,681,641 3.01

(1)Generally, gross revenues include sewer use fees and interest on investments.

(2)Generally, direct operating expenses include sewage treatment and pumping, sewer maintenance, administrative and general, and industrial waste control.Excluded from direct operating expense are depreciation and amortization.

(3)The numbers reflect the total annual fiscal year’s debt service requirements on all the outstanding senior and junior revenue bonds and notes.

Net Revenues

Convention Center Hotel from Manager

2005 $ 5,197,148 1,111,614 4,085,534 - 4,280,527 4,280,527 0.952006 7,046,759 1,766,738 5,280,021 - 5,318,665 5,318,665 0.992007 8,414,989 1,835,394 6,579,595 - 5,299,307 5,299,307 1.242008 9,715,892 1,956,436 7,759,456 - 6,158,546 6,158,546 1.262009 7,065,949 1,863,396 5,202,553 - 5,192,217 5,192,217 1.002010 8,274,289 1,569,043 6,705,246 315,000 5,185,917 5,500,917 1.222011 6,969,693 1,971,401 4,998,292 470,000 5,170,217 5,640,217 0.892012 11,248,005 1,506,695 9,741,310 640,000 7,606,435 8,246,435 1.182013 11,915,719 2,429,308 9,486,411 1,160,000 7,570,504 8,730,504 1.092014 12,641,552 2,222,510 10,419,042 1,340,000 7,520,504 8,860,504 1.18

(1)Generally, gross revenues include net revenues from manager and interest on investments.

(2)Generally, direct operating expenses include administrative costs, taxes, and insurance.Excluded from direct operating expense are depreciation and amortization.

(3) Hotel opened April 1, 2004.

Schedule 16

City of Omaha, Nebraska Pledge Revenue Coverage - Continued


203


Revenue1

Expenses2


Coverage

Dock RentalDodge Park Marina Fund Fees

2005 $ 424,648 277,860 146,788 140,000 24,628 164,628 0.892006 444,992 261,985 183,007 140,000 18,398 158,398 1.162007 517,829 300,929 216,900 150,000 12,038 162,038 1.342008 504,623 325,086 179,537 155,000 5,288 160,288 1.122009 498,450 450,812 47,638 - - - N/A 2010 446,039 283,542 162,497 - - - N/A 2011 397,344 272,036 125,308 - - - N/A 2012 603,435 471,743 131,692 - - - N/A 2013 619,904 531,989 87,915 - - - N/A 2014 581,984 473,960 108,024 - - - N/A

(1)Generally, gross revenues include net slip rental fees, concessions, and interest on investments.

(2)Generally, direct operating expenses include operating and maintenance costs.Excluded from direct operating expense are depreciation and amortization.

Special Tax Revenue RedevelopmentRedevelopment Bonds Levy

2005 $ 1,815,671 - 1,815,671 1,125,000 2,082,762 3,207,762 0.572006 1,924,414 - 1,924,414 1,360,000 1,929,602 3,289,602 0.582007 1,987,825 - 1,987,825 1,095,000 1,768,361 2,863,361 0.692008 2,266,497 - 2,266,497 1,420,000 1,889,680 3,309,680 0.682009 2,386,049 - 2,386,049 1,730,000 2,105,945 3,835,945 0.622010 4,175,584 - 4,175,584 2,315,000 2,302,714 4,617,714 0.902011 4,258,621 - 4,258,621 2,390,000 2,228,570 4,618,570 0.922012 4,436,505 - 4,436,505 2,625,000 2,113,708 4,738,708 0.942013 4,469,767 - 4,469,767 3,130,000 1,530,279 4,660,279 0.962014 4,263,934 - 4,263,934 2,765,000 1,440,558 4,205,558 1.01

(1)Gross revenue include the Special Tax Redevelopment Property Tax Levy.

Schedule 16

City of Omaha, Nebraska Pledge Revenue Coverage - Continued


204


Revenue1

Expenses2


Coverage

Special Obligation Bonds

2005 $ 119,192,495 - 119,192,495 621,813 3,376,938 3,998,751 29.81 2006 116,878,412 - 116,878,412 643,542 3,352,007 3,995,549 29.25 2007 121,702,023 - 121,702,023 670,527 3,325,702 3,996,229 30.45 2008 128,318,818 - 128,318,818 699,182 2,455,815 3,154,997 40.67 2009 125,060,406 - 125,060,406 1,442,837 3,645,523 5,088,360 24.58 2010 130,252,172 - 130,252,172 1,251,492 3,589,306 4,840,798 26.91 2011 129,912,045 - 129,912,045 1,300,878 3,534,862 4,835,740 26.86 2012 131,719,136 - 131,719,136 1,360,264 3,210,247 4,570,511 28.82 2013 140,253,013 - 140,253,013 1,809,870 3,020,695 4,830,565 29.03 2014 146,535,568 - 146,535,568 2,272,790 2,961,534 5,234,324 28.00

(1)Gross revenues include state cigarette tax, TIF revenues, land sales, and sales tax.

(2)Generally, direct operating expenses include administrative costs, taxes, and insurance.

(3)Sewer Revenue portion of debt service requirement reported under the Sewer Revenue Fund.

Street & Highway TaxAllocation Bonds

2010 $ 27,674,538 - 27,674,538 145,000 84,503 229,503 120.58

2011 30,371,268 - 30,371,268 65,000 77,645 142,645 212.922012 32,469,853 - 32,469,853 180,000 73,578 253,578 128.052013 34,215,504 - 34,215,504 185,000 67,270 252,270 135.632014 37,673,381 - 37,673,381 195,000 60,305 255,305 147.56

(1)Gross revenues include state street and highway allocation taxes.

Schedule 17

City of Omaha, Nebraska Demographic and Economic Statistics


205

Per CapitaPersonal Personal School Unemployment

Population1

Income2

Income2

Enrollment3

Rate4

Fiscal year:2005 423,255 $ 20,283,646 41,693 73,182 4.32006 428,263 21,424,933 43,599 74,288 3.42007 432,791 22,786,541 45,946 75,318 3.32008 438,646 23,941,124 47,588 75,764 3.72009 454,731 23,428,776 45,921 77,096 5.02010 409,850 23,584,222 45,473 77,560 4.72011 416,855 24,672,885 47,008 78,708 5.02012 419,041 25,765,091 48,498 78,796 4.42013 421,570 N/A N/A 80,638 4.52014 434,353 N/A N/A 78,167 3.2

Sources:1 U.S. Census Bureau.

2 U.S. Department of Commerce Bureau of Economic Analysis. Personal Income and Per Capita Income

are based on Douglas County figures. Personal income and per capita personal income datais not available for 2013 and 2014.

3 Omaha Public Schools, Millard Public Schools, District 66.

4 United States Department of Labor – Bureau of Labor Statistics

The unemployment rates are for the Omaha – Council Bluffs Metropolitan Statistical Area.

Schedule 18

City of Omaha, Nebraska Principal Employers

Current and Five Years Ago

206


Employer Employees Rank Employment

Offutt Air Force Base 7,500+ 1 1.69Alegent Health 7,500+ 2 1.69Omaha Public Schools 5,000+ 3 1.69Methodist Health System 5,000+ 4 1.13The Nebraska Medical Center 5,000+ 5 1.13University of Nebraska Medical Center 2,500+ 6 1.13First Data Corp. 2,500+ 7 0.56Union Pacific Corp. 2,500+ 8 0.56HyVee Inc. 2,500+ 9 0.56First National Bank of Nebraska 2,500+ 10 0.56West Corp. 2,500+ 11 0.56Walmart Stores 2,500+ 12 0.56ConAgra Foods 2,500+ 13 0.56Mutual of Omaha 2,500+ 14 0.56Creighton University 2,500+ 15 0.56

Total 13.50%


Employer Employees Rank Employment

Offutt Air Force Base 7,500+ 1 1.99Alegent Health 7,500+ 2 1.99Omaha Public Schools 7,500+ 3 1.99Methodist Health System 5,000+ 4 1.32The Nebraska Medical Center 5,000+ 5 1.32First Data Corp. 2,500+ 6 1.32Union Pacific Corp. 2,500+ 7 0.66University of Nebraska Medical Center 2,500+ 8 0.66West Corp. 2,500+ 9 0.66First National Bank of Nebraska 2,500+ 10 0.66Mutual of Omaha 2,500+ 11 0.66ConAgra Foods 2,500+ 12 0.66Creighton University 2,500+ 13 0.66City of Omaha 2,500+ 14 0.66University of Nebraska Omaha 2,500+ 15 0.66

Total 15.87%

Sources: Greater Omaha Economic Development Partnership – Omaha Chamber of Commerce Web site.

Note: Data not available for employers nine years prior; therefore, earliest year available is presented above.

Schedule 19

City of Omaha, Nebraska Full-Time Equivalent City Government

Employees by Function/Program


2005 2006 2007 2008

Function:General government 182 165 161 170 Public safety:

Police:Sworn 768 772 751 796 Civilian 180 170 161 147

Fire:Sworn 634 651 630 662 Civilian 8 8 9 9

Prosecutors 17 17 13 11 Transportation services 229 244 249 255 Community development 103 102 106 118 Culture and parks 210 208 211 221 Other public services 87 96 98 96 Golf 25 25 23 21 Tennis 1 1 1 1 Dodge Park Marina 1 1 1 1 Printing and graphics - 7 5 5 Sewer 45 42 57 57 Air quality control 7 7 7 7 Compost 6 7 7 7 Parking facilities 1 1 1 - Environmental engineering - - - -

Total 2,504 2,524 2,491 2,584

Source: City of Omaha Annual Budgets.

207

2009 2010 2011 2012 2013 2014

170 176 180 169 169 167

765 787 780 790 774 788 143 149 142 142 134 141

667 640 624 633 651 633 5 - - 3 5 5

12 12 12 12 12 12 262 262 275 284 262 271 117 120 121 119 117 118 208 221 221 220 206 226 95 105 104 102 111 122 22 17 16 16 18 20 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 2 2 2

57 57 63 63 65 64 7 6 6 6 5 5 7 5 5 5 5 5

- - - 1 2 2 - - - - - -

2,542 2,562 2,554 2,569 2,540 2,583

Schedule 20

City of Omaha, Nebraska Operating Indicators by Function/Program


2005 2006 2007 2008

Function:General government:

Law – civic:Civil active cases 416 350 389 161

Public safety:Police:

Calls for service 234,149 235,065 232,586 226,616 Incidents of arrests 28,019 32,266 32,732 32,178 Crime scene investigation N/A N/A N/A N/ACalls for services per day N/A N/A N/A N/A

Traffic citations:Moving 30,611 33,238 28,834 20,120

Response to Priority 1 Citizen Calls:Average response time N/A N/A N/A N/A

Fire:Fire calls answered 1,825 1,834 1,905 1,620 Average response time 4 min 34 sec 4 min 36 sec 4 min 34 sec 4 min 31 sec

Culture and recreation:Library:

Number of items checked outby public 2,500,000 2,889,557 2,855,393 3,002,144

Recreation:Attendance: community centers 629,618 638,835 720,778 611,081

Community development:Planning:

Planning board case reviews 561 390 452 233 Golf:

Golf rounds played 206,000 195,911 189,346 182,157

Source: City of Omaha Annual Budget.Note: The figures shown above are based on actuals.

208

2009 2010 2011 2012 2013 2014

241 245 261 280 269 259

236,670 229,933 218,446 217,149 N/A N/A25,009 39,973 24,078 22,732 N/A N/A

N/A N/A N/A N/A 5,830 5,083 N/A N/A N/A N/A 519 620

24,409 43,186 47,230 43,219 N/A N/A

N/A N/A N/A N/A 5 min 6 min 26 sec

1,549 1,585 1,420 1,878 1,619 1,754 4 min 25 sec 4 min 28 sec 4 min 23 sec 4 min 24 sec 4 min 18 sec 4 min 28 sec

3,131,585 3,205,734 3,148,969 3,038,060 N/A 3,021,207

615,000 893,737 959,984 884,734 749,175 712,223

277 218 188 167 181 219

181,000 157,500 152,503 162,479 160,707 168,086

Schedule 21

City of Omaha, Nebraska Capital Asset Statistics by Function/Program


2005 2006 2007 2008Function:

Public safety:Police precincts (includes headquarters) 5 5 5 5 Police horse patrol facility 1 1 1 1 Emergency response and traffic facility 1 1 1 1 Police air support facility 1 1 1 1 Fire stations (includes headquarters) 23 23 23 24 Police/fire training facility - 1 1 1 Medic units 13 13 15 15

Transportation services:Lane miles of streets, striped 830 840 870 870 Streetlights 51,528 52,834 53,696 54,852

Culture and recreation:Parks acreage 8,284 8,537 8,537 8,680 Parks N/A N/A N/A N/ASwimming pools (outdoor) 16 16 16 16 Swimming pools (indoor) 2 2 3 3 Golf courses (public) 8 8 8 8 Community centers 15 15 15 15 Libraries 10 10 11 11

Sewer:Sewer line cleaned (linear feet) 3,171,496 3,405,072 3,383,994 3,150,344

Sources: Various City departments.

209

2009 2010 2011 2012 2013 2014

5 5 5 5 5 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

24 24 24 24 24 24 1 1 1 1 1 1

15 15 15 15 15 15

940 1,200 930 930 1,045 1,160 56,277 57,074 58,207 58,725 58,685 59,729

9,455 9,475 9,475 9,620 9,620 9,522 192 225 225 231 231 239 14 16 15 15 15 15 3 3 3 3 3 3 8 8 8 8 9 9

16 15 14 14 13 13 12 12 12 12 12 12

3,383,994 3,711,211 3,459,317 3,539,909 3,528,832 3,346,046

SINGLE AUDIT SECTION

City Of Omaha, Nebraska Schedule of Expenditures of Federal Awards


210

See accompanying independent auditors' report and notes to schedule of expenditures of federal awards.

CFDANumber Grant Number Expenditures

U.S. Department of Housing and Urban Development:Community Development Block Grants/Entitlement Grants Cluster:

Community Development Block Grants/Entitlement Grants 14.218 B-(08-12)-MC-31-0002 $ 399,432 Community Development Block Grants/Entitlement Grants 14.218 B-(13)-MC-31-0002 1,000,947 Community Development Block Grants/Entitlement Grants 14.218 B-(14)-MC-31-0002 3,138,459 Community Development Block Grants/Entitlement Grants 14.218 168,650

Subtotal for CFDA 14.218 4,707,488

Community Development Block Grants/State-Administered Small Cities Program Cluster:Neighborhood Stabilization Program - 3 14.228 B-11-MN-31-0001 40 Passed through Nebraska Department of Economic Development:

Neighborhood Stabilization Program - 1 14.228 0910S23 74,192 Neighborhood Stabilization Program - 3 St Richards Sr. Housing 14.228 11-NRS-05 14,059 Neighborhood Stabilization Program - 3 Fair Deal 14.228 11-NR-12 74,000

Subtotal for CFDA 14.228 162,291

Emergency Solutions Grants Program:Emergency Solutions Program - 2013 14.231 S-13-MC-31-0001 315,657

Shelter Plus Care:Shelter Plus Care - 2013 14.238 103,653 Shelter Plus Care - 2014 14.238 37,271


HOME Investment Partnerships Program:HOME Investment Partnership Program 14.239 M-(10-12)-DC-31-0203 15,060 HOME Investment Partnership Program 14.239 M-13-DC-31-0203 2,031,599 HOME Investment Partnership Program 14.239 M-14-DC-31-0203 315,796

Subtotal for CFDA 14.239 2,362,455

Fair Housing Assistance Program State and Local:Fair Housing Assistance Program - 2010 14.401 FF207K107008 190,048 Fair Housing Assistance Program - 2014 14.401 FF207K147008 10,094


Lead Based Paint Hazard Control:2010 Lead Based Paint Hazard Control in Privately-Owned Housing 14.900 NELB-0479-10 736,603

Healthy Homes Production Program:2010 Healthy Homes Production Program 14.913 NELB-0479-10 56,878

Total U.S. Department of Housing and Urban Development 8,682,438

U.S. Department of Interior:Passed through the State of Nebraska Historical Society:

Historic Preservation Fund Grants-in-Aid - 2013 15.904 2013 GRANT 29,775 Historic Preservation Fund Grants-in-Aid - 2014 15.904 2014 GRANT 8,206


Total U.S. Department of Interior 37,981

U.S. Department of Justice:Law Enforcement Assistance - Narcotics and Dangerous Drugs - Laboratory Analysis:

DEA - Marijuana Eradication 16.001 2014 GRANT 10,000 DEA - Drug Task Force 16.001 2014 GRANT 23,135


Juvenile Accountability Block Grants:Passed through the State of Nebraska Commission on Law Enforcement and Criminal Justice:

Juvenile Accountability Block Grant XIV 16.523 11-JA-0602 6,000 Juvenile Justice and Delinquency Prevention Allocation to States:

African America Youth Leadership 16.540 13-JJ-01 3,750 Missing Children's Assistance:

Passed through the Nebraska State Patrol:Internet Crimes Against Children 16.543 Internet Crimes 6,138

Federal Grantor/Pass-throughGrantor/Program Title

City Of Omaha, Nebraska Schedule of Expenditures of Federal Awards - Continued


211



Violence Against Women Office:Passed through the Domestic Violence Council:

NCC VAWA - 2012 16.588 12-VW-0707 $ 40,521 NCC VAWA - 2013 16.588 13-VW-0707 93,088


Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program:ENC. ARREST POL. - GEAP 2011 16.590 2011-WE-AX-0018 268,949

Project Safe Neighborhoods:2012 Project Safe Neighborhoods 16.609 2012-GP-BX-0013 73,588 2013 Project Safe Neighborhoods 16.609 2013-GP-BX-0002 62,597


Public Safety Partnership and Community Policing Grants:2011 COPS Hiring Grants 16.710 2011-UL-WX-0022 842,032

Edward Byrne Memorial Justice Assistance Grant Program Cluster:2011 Justice Assistance (JAG) 16.738 2011-DJ-BX-2287 156,242 2012 Justice Assistance (JAG) 16.738 2012-DJ-BX-0863 78,451 2013 Justice Assistance (JAG) 16.738 2013-DJ-BX-0974 136,523 2014 Justice Assistance (JAG) 16.738 2014-DJ-BX-0891 98,476 Passed through the State of Nebraska Commission on Law Enforcement and Criminal Justice:

2013-14 Metro Drug Task Force 16.738 13-DA-0311 42,697


Byrne Criminal Justice Innovation Program:2012 Byrne Criminal Innovation Program 16.817 2012-AJ-BX-0013 58,601

Equitable Sharing Program:General Seized Assets 16.922 NB0280200 96,485 Metro Seized Assets 16.922 NB0280200 383,208


Total U.S. Department of Justice 2,480,481

U.S. Department of Transportation:Highway Planning and Construction Cluster:

Passed through the State of Nebraska Department of Highway Safety:Click it or Ticket it 20.205 2013 Click-it or Ticket 33,157 You Drink, You Drive, You Lose 20.205 2013-YDYDYL 15,632 2013 Selective Traffic Overtime 20.205 2013 Selective Traffic OT 22,629

144th St W Dodge Rd to Eagle Run 20.205 STPC-5001(19) Phase II 84,196 N-133/N-64 90th & Maple 20.205 HSIP-133-2(112) 275,151 Blondo St from 162nd to Eldorado 20.205 MAPA-5127(2) 332,383


Highway Traffic Safety Cluster:State and Community Highway Safety:

Passed through the State of Nebraska Department of Highway Safety:2013 Helmet Check 20.600 2013 Helmet Check 13,555 Project Night Life 20.600 08-40 112,208 IACP Conference 20.600 1,218


Alcohol Impaired Driving Countermeasures Incentive Grants I:Passed through the State of Nebraska Department of Highway Safety:

2013 Selective Alcohol Over Time 20.601 2013 Selective Alcohol OT 15,084 Driving Under the Influence Checks 20.601 DUI Checks 21,229


Subtotal for Highway Traffic Safety Cluster 163,294

National Priority Safety Programs:Passed through the State of Nebraska Department of Highway Safety:

Project Extra Mile 20.616 Project Extra Mile 11,546

Total U.S. Department of Transportation 937,988

Federal Grantor/Pass-throughGrantor/Program Title

City Of Omaha, Nebraska Schedule of Expenditures of Federal Awards - Continued


212



U.S. Department of Treasury:Equitable Sharing Program 21.000 NB0280200 $ 478,033

Total U.S. Department of Treasury 478,033

U.S. Commission on Civil Rights:Employment Discrimination - Title VII of the Civil Rights Act of 1964 30.001 EECCN130022 42,214

Total U.S. Commission on Civil Rights 42,214

Institute of Museum and Library ServicesNational Leadership Grants Program 45.312 LG-07-12-0615-12 235,577

Total Institute of Museum and Library Services 235,577

U.S. Environmental Protection Agency:Congressional Mandated Projects:

Omaha Lead Database - 2012 66.202 V-97734901 140,380 Superfund State Political Subdivision, and Indian Tribe Site - Specific Cooperation Agreements:

2012 EPA Lead Pass Through 66.802 V-97733501 308,751

Total U.S. Environmental Protection Agency 449,131

U.S. Department of Health and Human Services:National Bioterrorism Hospital Preparedness Program:

Passed through the State of Nebraska Department of Health and Human Services:2012 Office of Assistant Secretary for Preparedness and Response Grant 93.889 1U90TP000533-01 62 2013 Office of Assistant Secretary for Preparedness and Response Grant 93.889 5U90TP000533-02 149,959 2014 Office of Assistant Secretary for Preparedness and Response Grant 93.889 5U90TP000533-02 871


Total U.S. Department of Health and Human Services 150,892

Executive Office of the President:High Intensity Drug Trafficking Areas Program:

High Intensity Drug Trafficking Areas Program - METRO/COOR #12 95.001 G12MW0008A 10,193 High Intensity Drug Trafficking Areas Program - METRO/COOR #13 95.001 G13MW0008A 195,504 High Intensity Drug Trafficking Areas Program - METRO/COOR #14 95.001 G14MW0008A 183,516


Total Executive Office of the President 389,213

U.S. Department of Homeland Security:Assistance to Firefighters Grant 97.044 EMW-2013-FP-01003 11,208 Passed through the Nebraska Emergency Management Agency:

2011 State Homeland Security Program 97.067 2011-SS-00017 11,410 2011 State Homeland Security Program / Metropolitan Medical Reserve System 97.067 2011-SS-00017 1,774 2012 State Homeland Security Program 97.067 2012-SS-0026 91,074 2013 State Homeland Security Program 97.067 EMW-2013-SS-00010-S01 255,677 2014 State Homeland Security Program 97.067 2014-SS-00054 15,488 2011 CCP 97.067 2011-SS-T0-00017 1,322 2012 CCP 97.067 EMW-2012-SS-00026 6,725


National Explosives Detection Canine Team Program:Explosive Detection Canine Team 97.072 HSTS0208HCAN438 283,988

Total Department of Homeland Security 678,666

Total expenditures of federal awards $ 14,562,614

Grantor/Program TitleFederal Grantor/Pass-through

City Of Omaha, Nebraska Notes to Schedule of Expenditures of Federal Awards


213

Note 1: Reporting Entity

The accompanying Schedule of Expenditures of Federal Awards (the schedule) presents the activity of all federal financial award programs of the City of Omaha, Nebraska (the City). The City’s basic financial statements include the operations of Heartland Workforce Solutions (HWS), a discretely presented component unit, which received approximately $2,310,000 in Federal awards which is not included in the City’s schedule of expenditures of federal awards for the year ended December 31, 2014. The City’s reporting entity is defined in note 1 to the City’s basic financial statements. For the purposes of the schedule, federal awards include grants, contracts, loans, and loan guarantee agreements entered into directly between the City and agencies and departments of the federal government or pass through other government agencies or other organizations.

Note 2: Basis of Accounting

Amounts reported in the schedule are on the accrual basis, while amounts reported on federal financial reports are primarily on the cash basis.

Note 3: Outstanding Loan Principal Balances

The following is the outstanding principal balance of the Community Development Block Grant related to program loans (CFDA #14.218) at December 31, 2014:

Community Development Block Grant $ 161,209

The following is the outstanding principal balance of the Neighborhood Stabilization Program related to program loans (CFDA #14.228) at December 31, 2014:

Neighborhood Stabilization Program $ 24,566

The following is the outstanding principal balance of the HOME Investment Partnership Program related to program loans (CFDA #14.239) at December 31, 2014:

HOME Investment Partnership Program $ 749,358

The loan balances above are not included in the federal expenditures for the year ended December 31, 2014.

City Of Omaha, Nebraska Notes to Schedule of Expenditures of Federal Awards


214

Note 4: Subrecipients

Of the federal expenditures presented in the schedule, the City provided federal awards to subrecipients for the year ended December 31, 2014 as follows:

AmountProvided

Grant CFDA toProgram Title Number Number Subrecipients

Community Development Block Grants/Entitlement Grants Various 14.218 $ 509,571

HOME Investment Partnerships Program Various 14.239 900,091 Juvenile Justice and Delinquency Prevention

Allocation to States:African America Youth Leadership 13-JJ-01 16.540 3,750

Grants to Encourage Arrest Policies and Enforcementof Protection Orders 2011-WE-AX-0018 16.590 201,582

Project Safe Neighborhoods Various 16.609 50,262 Justice Assistance Grant Various 16.738 287,975 Byrne Criminal Justice Innovation Program 2012-AJ-BX-0013 16.817 49,283

$ 2,002,514

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial

Statements Performed in Accordance with Government Auditing Standards The Honorable Mayor and Members of the City Council City of Omaha, Nebraska We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of Omaha, Nebraska (the City), as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated July 28, 2015, which contained “Emphasis of Matters” paragraphs regarding a change in accounting principle and restatements of previously issued financial statements. Our report also includes a reference to other auditors who audited the financial statements of the discretely presented component units, as described in our report on the City’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.

Internal Control Over Financial Reporting

Management of the City is responsible for establishing and maintaining effective internal control over financial reporting (internal control). In planning and performing our audit, we considered the City’s internal control to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses and, therefore, there can be no assurance that all material weaknesses have been identified. However, as discussed in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be a material weakness.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as item 2014-001 to be a material weakness.

216

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

The City’s Response to Finding

The City’s response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

We also noted certain additional matters that we have reported to City’s management in a separate letter dated July 28, 2015.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance

Independent Auditor’s Report

The Honorable Mayor and Members of the City Council City of Omaha, Nebraska Report on Compliance for Each Major Federal Program

We have audited the compliance of the City of Omaha, Nebraska (the City) with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2014. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. The City’s basic financial statements include the operations of Heartland Workforce Solutions (HWS), a discretely presented component unit, which received approximately $2,310,000 in federal awards which are not included in the City’s schedule of expenditures of federal awards for the year ended December 31, 2014. Our audit, described below, did not include the operations of HWS because the component unit engaged other auditors to perform an audit in accordance with OMB Circular A-133.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

218

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

Opinion on Each Major Federal Program

In our opinion, the City of Omaha, Nebraska, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2014.

Report on Internal Control Over Compliance

Management of the City of Omaha, Nebraska is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.


City of Omaha, Nebraska Schedule of Findings and Questioned Costs


219

Summary of Auditor’s Results

1. The opinions expressed in the independent auditor’s report were:

Unmodified Qualified Adverse Disclaimer

2. The independent auditor’s report on internal control over financial reporting disclosed:

Significant deficiency(ies)? Yes None Reported

Material weakness(es)? Yes No

3. Noncompliance considered material to the financial statements

was disclosed by the audit? Yes No

4. The independent auditor’s report on internal control over compliance for major federal awards programs

disclosed:

Significant deficiency(ies)? Yes None Reported

Material weakness(es)? Yes No

5. The opinions expressed in the independent auditor’s report on compliance for major federal awards

were:

Unmodified Qualified Adverse Disclaimer

6. The audit disclosed findings required to be reported by OMB

Circular A-133? Yes No

City of Omaha, Nebraska Schedule of Findings and Questioned Costs


220

7. The City’s major programs were:

Cluster/Program CFDA Number

Community Development Block Grants/Entitlement Grants Cluster 14.218 HOME Investment Partnerships Program 14.239 Lead Based Paint Hazard Control 14.900 Edward Byrne Memorial Justice Assistance Grant Program Cluster 16.738 Equitable Sharing Program 16.922 Highway Planning and Construction Cluster 20.205 Equitable Sharing Program 21.000

8. The threshold used to distinguish between Type A and Type B programs as those terms are defined in OMB Circular A-133 was $469,130.

9. The City qualified as a low-risk auditee as that term is defined in OMB Circular A-133? Yes No

City of Omaha, Nebraska Schedule of Findings and Questioned Costs - Continued


221

Findings Required to be Reported by Government Auditing Standards

Reference Number Finding

Questioned Costs

2014-001

Proposed Audit Adjustments

Criteria or Specific Requirement – Management is responsible for the preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP).

Condition – The preparation of the City’s financial statements required prior period adjustments and proposed adjusting journal entries for proper financial statement presentation.

Context – City procedures did not allow for the proper evaluation of potential adjustments that, individually or in the aggregate, have a significant effect on the financial statements at year-end.

Effect – Significant prior period and current year adjustments were identified and proposed in connection with the financial statement audit.

Cause – The City received accounting advice over the course of several years from various third parties, however this guidance was not consistent with GAAP and therefore, corrections were made to beginning net position and current year financial statements.

Recommendation – Management should review procedures to help ensure that controls are in place that will allow for the preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America.

Views of Responsible Officials and Planned Corrective Actions (Management’s Response) – City management has reviewed the proposed adjustments and will ensure that the recommended procedures are incorporated in future fiscal year financial statements.

None

City of Omaha, Nebraska Schedule of Findings and Questioned Costs - Continued


222

Findings Required to be Reported by OMB Circular A-133

Reference Number Finding

Questioned Costs

No matters are reportable.

City of Omaha, Nebraska Summary Schedule of Prior Audit Findings


223

Reference Number Summary of Finding Status

2013-001

Federal Programs – ARRA-Edward Byrne Memorial Justice Assistance

Grant (JAG) CFDA No. 16.738, 16.804 and ARRA-Energy Efficiency and Conservation Block Grant Program (EECBG) CFDA No. 81.128

Criteria or Specific Requirement – Activities Allowed or Unallowed and Allowable Costs/Cost Principles

Recommendation – The City should establish policies and procedures to ensure that semi-annual certifications are completed on a semi-annual basis for all employees working 100% on grants that are federally funded. The City should also establish policies and procedures to ensure that personnel activity reports or equivalent documentation is maintained at least monthly and is signed by the employee for all employees working on multiple activities or cost objectives.

Corrected

2013-002 Federal Programs – ARRA-Edward Byrne Memorial Justice Assistance Grant (JAG) CFDA No. 16.738, 16.804 and ARRA-Energy Efficiency and Conservation Block Grant Program (EECBG) CFDA No. 81.128

Criteria or Specific Requirement – Procurement, Suspension and Debarment

Recommendation – The City should evaluate current procurement practices to identify areas, where internal controls could be strengthened to include monitoring of compliance with procurement, suspension and debarment compliance requirements including obtaining suspension and debarment certifications from all subrecipients and vendors.

Corrected

city of omaha, ne · decades and growth of 4.9% between 2000 and 2010. the city of omaha is...

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