(BAM Insured) Ratings: S&P Insured: AA MUR: Aa3 · (BAM Insured) Ratings: S&P Insured: "AA" MUR: "Aa3" NEW ISSUE BOOK-ENTRY FORM ONLY See "RATINGS" and "BOND INSURANCE" herein. In

(BAM Insured) Ratings: S&P Insured: "AA"

MUR: "Aa3" NEW ISSUE BOOK-ENTRY FORM ONLY See "RATINGS" and "BOND INSURANCE" herein. In the opinion of Bricker & Eckler LLP, Bond Counsel, under existing law (a) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Series 2020 Bonds is excluded from gross income for federal income tax purposes and is not treated as an item of tax preference for purposes of the alternative minimum tax, and (b) interest on and any profit made on the sale, exchange or other disposition of the Series 2020 Bonds is exempt from certain taxes levied by the State of Ohio and its political subdivisions. The City has not designated the Series 2020 Bonds as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). Interest on the Series 2020 Bonds may be subject to certain federal income taxes imposed on certain corporations, and certain taxpayers may have certain other adverse federal income tax consequences as a result of owning the Series 2020 Bonds. For a more complete discussion of the tax aspects, see "TAX MATTERS."

OFFICIAL STATEMENT $40,465,000

CITY OF MARYSVILLE, OHIO Water System Mortgage Revenue Bonds, Series 2020

Dated: Date of Delivery Due: As shown on the inside cover herein The above-captioned Water System Mortgage Revenue Bonds, Series 2020 (the "Series 2020 Bonds") are being issued by the City of

Marysville, Ohio (the "City" or "Issuer") pursuant to an ordinance of the Council of the City adopted on February 10, 2020, and a Certificate of Award authorized by such ordinance (collectively, the "Bond Legislation"), and an Indenture of Mortgage, dated as of June 1, 1991, as supplemented and amended by a First Supplemental Indenture of Mortgage, dated as of November 15, 1993, a Second Supplemental Indenture of Mortgage, dated as of April 1, 2002, a Third Supplemental Indenture of Mortgage, dated as of November 1, 2003, a Fourth Supplemental Indenture of Mortgage, dated as of October 15, 2007, a Fifth Supplemental Indenture of Mortgage, dated as of June 15, 2016, and a Sixth Supplemental Indenture of Mortgage, dated as of May 20, 2020 (collectively, the "Indenture"), between the City and The Huntington National Bank, Cincinnati, Ohio, as trustee (the "Trustee"), for the purpose of paying costs associated with the acquisition, construction, expansion, rehabilitation, and improvement of the City's municipal water system (the "Utility"). Terms used herein with initial capitalization where the rules of grammar would not otherwise so require and not defined have the meanings given to them under "DEFINITIONS" herein or in APPENDIX B - "SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE."

Interest on the Series 2020 Bonds will be payable semiannually on June 1 and December 1 of each year, commencing December 1, 2020. Principal of and interest on the Series 2020 Bonds will be payable at maturity in federal funds at the designated office of The Huntington National Bank, as trustee, registrar, paying agent and transfer agent for the Series 2020 Bonds.

The Series 2020 Bonds are issuable as fully registered obligations and, when issued, will be initially registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). Purchases of beneficial interests in the Series 2020 Bonds will be made in book-entry only form. Purchasers of beneficial interests ("Beneficial Owners") will not receive certificates representing their interests in the Series 2020 Bonds. So long as the Series 2020 Bonds of an issue are registered in the name of Cede & Co., as nominee of DTC, references herein to the owners shall mean Cede & Co. and shall not mean the Beneficial Owners of that issue of Series 2020 Bonds. See "BOOK-ENTRY ONLY SYSTEM" herein.

The Series 2020 Bonds are subject to optional redemption prior to their stated maturity, as set forth herein. The Series 2020 Bonds maturing December 1, 2035, December 1, 2037, December 1, 2039, December 1, 2041, December 1, 2043 and December 1, 2049 will be subject to mandatory sinking fund redemption prior to stated maturity as set forth herein. See "THE SERIES 2020 BONDS – Redemption" herein.

THE SERIES 2020 BONDS ARE SPECIAL LIMITED OBLIGATIONS OF THE CITY, SECURED BY THE INDENTURE HEREIN, AND WILL BE PAYABLE SOLELY FROM THE NET REVENUES AND AMOUNTS IN THE SPECIAL FUNDS DESCRIBED HEREIN. NEITHER THE GENERAL CREDIT OF THE CITY, NOR THAT OF THE STATE OF OHIO OR OF ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS AND THE OWNERS AND HOLDERS OF THE SERIES 2020 BONDS DO NOT HAVE THE RIGHT TO HAVE ANY EXCISES OR TAXES LEVIED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE CITY, FOR THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS.

The scheduled payment of principal of and interest on the Series 2020 Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Series 2020 Bonds by Build America Mutual Assurance Company.

The Series 2020 Bonds are offered when, as and if issued and received by the Underwriter, subject to prior sale and to withdrawal or modification of the offer without notice. Certain legal matters relating to the issuance of the Series 2020 Bonds are subject to the approving opinion of Bricker & Eckler LLP, Bond Counsel. (See "LEGAL MATTERS" and "TAX MATTERS.") Certain other legal matters will be passed upon for the Underwriter by its counsel, Frost Brown Todd LLC, Columbus, Ohio. Bradley Payne, LLC, Circleville, Ohio, has acted as Municipal Advisor to the City in connection with the issuance of the Series 2020 Bonds. (See "MUNICIPAL ADVISOR.")

This cover page contains certain information for general reference only. It is not a summary of the provisions of the Series 2020 Bonds. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. This Official Statement has been prepared by the City of Marysville in connection with the original offering for sale by it of the Series 2020 Bonds. It is expected that delivery of the Series 2020 Bonds in definitive form will be made through the facilities of DTC on or about May 20, 2020. The date of this Official Statement is April 29, 2020, and the information herein speaks only as of that date.

i

$40,465,000 CITY OF MARYSVILLE, OHIO

Water System Mortgage Revenue Bonds, Series 2020

$11,985,000 SERIAL BONDS

Maturity Date (December 1)

Principal Maturing

Interest Rate Yield CUSIP1

2020 $ 225,000 4.00% 1.130% 574486EW22021 215,000 4.00 1.160 574486EX0 2022 255,000 4.00 1.310 574486EY82023 300,000 4.00 1.390 574486EZ52024 330,000 4.00 1.490 574486FA92025 380,000 4.00 1.580 574486FB72026 430,000 4.00 1.690 574486FC52027 480,000 4.00 1.750 574486FD32028 535,000 4.00 1.860 574486FE12029 590,000 4.00 1.910 574486FF82030 650,000 3.00 2.160 574486FG62031 705,000 4.00 2.110 574486FH42032 765,000 4.00 2.240 574486FJ02033 835,000 4.00 2.360 574486FK72044 2,595,000 4.00 2.840 574486FT82045 2,695,000 4.00 2.880 574486FR2

$1,870,000 4.00% TERM BONDS MATURING DECEMBER 1, 2035,

YIELD 2.440%, CUSIP1 574486FL5


YIELD 2.810%, CUSIP1 574486FM3


YIELD 2.640%, CUSIP1 574486FN1


YIELD 2.720, CUSIP1 574486FP6


YIELD 2.790%, CUSIP1 574486FQ4


YIELD 3.170%, CUSIP1 574486FS0

Build America Mutual Assurance Company Disclaimer Statement

Build America Mutual Assurance Company ("BAM") makes no representation regarding the Series 2020 Bonds or the advisability of investing in the Series 2020 Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading "BOND INSURANCE" and "APPENDIX G – Specimen Municipal Bond Insurance Policy."

1 Copyright © 2020 CUSIP Global Services. The City is not responsible for the use of the CUSIP numbers referenced herein nor is any representation made by the City as to their correctness; such CUSIP numbers are included solely for the convenience of the readers of the Official Statement.

ii



City Council

Henk Berbee President/Mayor

Mark Reams

Vice President

Deborah Groat Member

Donald Boerger Member

Aaron Carpenter Member

Alan Seymour

Member J.R. Rausch

Member

City Administration

Terry Emery City Manager

Brad Lutz

Director of Finance

Tim Aslaner Law Director

Professional Services

Stifel, Nicolaus & Company, Incorporated

Underwriter

Bricker & Eckler LLP Bond Counsel

Bradley Payne, LLC Municipal Advisor

Frost Brown Todd LLC Underwriter's Counsel

The Huntington National Bank

Trustee

iii

REGARDING THIS OFFICIAL STATEMENT This Official Statement does not constitute an offering of any security other than the original offering of the Series 2020 Bonds of the City of Marysville, Ohio, (the "City" or "Issuer") identified on the cover hereof. No person has been authorized by the City to give any information or to make any representations, other than those contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been given or authorized by the City. Statements contained in this Official Statement that involve estimates, forecasts, or matters of opinion, whether or not expressly described herein, are intended solely as such and are not to be construed as representations of facts. The information set forth herein has been obtained from the City and other sources that are believed to be reliable for purposes of this Official Statement. This Official Statement contains, in part, estimates and matters of opinion that are not intended as statements of fact, and no representation is made as to the correctness of such estimates and opinions or that they will be realized. The information and expressions of opinions herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof.

CUSIP data on the Cover has been provided by CUSIP Global Services, which is managed on behalf of the American Bankers Association ("ABA") by S&P Global Market Intelligence, a division of S&P Global Inc. CUSIP is a registered trademark of the ABA. The CUSIP data are being provided solely for the convenience of the owners of the Series 2020 Bonds and only at the time of issuance of the Series 2020 Bonds. The City, Bond Counsel, and the Underwriter are not responsible for the selection or use of these CUSIP numbers and make no representation with respect to such data or undertake any responsibility for its accuracy now or at any time in the future. CUSIP numbers are subject to being changed after the issuance of the 2020 Bonds as a result of subsequent actions and events.

Certain information in this Official Statement is attributed to the Ohio Municipal Advisory Council ("OMAC"). OMAC compiles information from official and other sources. OMAC believes the information it compiles is accurate and reliable, but OMAC does not independently confirm or verify the information and does not guarantee its accuracy. OMAC has not reviewed this official statement to confirm that the information attributed to it is information provided by OMAC or for any other purpose. Certain information located at websites referred to herein has been prepared by the respective entities responsible for maintaining such websites. The City takes no responsibility for the continued accuracy of any internet address or the accuracy, completeness, or timeliness of any information posted at any such address. In the absence of an express statement to the contrary, none of such information is incorporated herein by reference. Stifel, Nicolaus & Company, Incorporated (the "Underwriter") has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. UPON ISSUANCE, THE SERIES 2020 BONDS WILL NOT BE REGISTERED BY THE CITY UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE, AND WILL NOT BE LISTED ON ANY STOCK OR OTHER SECURITIES EXCHANGE. THE SERIES 2020 BONDS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS ANY OTHER FEDERAL, STATE, MUNICIPAL OR OTHER GOVERNMENTAL ENTITY OR AGENCY, EXCEPT THE

iv

CITY, PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT OR APPROVED THE SERIES 2020 BONDS FOR SALE. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY, AND THERE SHALL NOT BE ANY SALE OF, THE SERIES 2020 BONDS BY ANY PERSON IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL TO MAKE SUCH OFFER, SOLICITATION OR SALE.

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2020 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE SERIES 2020 BONDS TO CERTAIN DEALERS, DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICE MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.

INVESTMENT CONSIDERATIONS General

The Series 2020 Bonds, like all obligations of state and local governments, are subject to changes in value due to changes in the condition of the market for taxable and tax-exempt obligations or changes in the financial position of the City. It is possible under certain market conditions, or if the financial condition of the City should change, that the market price of the Series 2020 Bonds could be adversely affected. With regard to the risk involved in a downward revision or withdrawal of the rating for the Series 2020 Bonds shown on the cover hereof, see "RATINGS" herein. With regard to the risk involved in a loss of the exclusion from gross income for purposes of federal income taxation of interest payable on the Series 2020 Bonds, see "TAX MATTERS" herein. Prospective purchasers of the Series 2020 Bonds should consult their own tax advisors prior to any purchase of the Series 2020 Bonds as to the impact of the Internal Revenue Code of 1986, as amended, upon their acquisition, holding or disposition of the Series 2020 Bonds. Market for the Series 2020 Bonds

Subject to prevailing market conditions, the Underwriter intends, but is not obligated, to make a market in the Series 2020 Bonds. There is no assurance that a secondary market for the Series 2020 Bonds will develop or, if developed, will not be disrupted by events including, but not limited to, the current pandemic associated with the COVID-19 virus (See "CORONAVIRUS (COVID-19)" herein). Consequently, investors may not be able to resell the Series 2020 Bonds purchased should they need or wish to do so for emergency or other purposes.

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Prepayments of Principal

The Series 2020 Bonds allow the City to prepay certain principal of the Series 2020 Bonds without penalty. See "THE SERIES 2020 BONDS – Redemption – Optional Redemption" herein. If such Series 2020 Bonds were to be prepaid before scheduled maturity, the investor would not receive the anticipated yield through the scheduled maturity date. In such a prepayment situation there is no guarantee that the investor could reinvest the proceeds and receive a comparable yield for the period remaining until the scheduled maturity of the Series 2020 Bonds. The investor, therefore, may receive a lower total return for the period beginning on the date of purchase through the scheduled date of maturity than anticipated.

[Balance of Page Intentionally Left Blank]

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BOND ISSUE SUMMARY The information contained in this Issue Summary is qualified in its entirety by the entire Official Statement, which should be reviewed in its entirety by potential investors. Issuer: City of Marysville, Ohio Issue: $40,465,000 Water System Mortgage Revenue Bonds, Series 2020 (the "Series 2020

Bonds") Dated Date: Date of Delivery Interest Payment Dates: Interest on the Series 2020 Bonds will be paid each June 1 and December 1, commencing

December 1, 2020. Maturity Dates: Serial Bonds: December 1, 2020 through December 1, 2033, December 1, 2044 and

December 1, 2045, inclusive; Term Bonds: December 1, 2035, December 1, 2037, December 1, 2039, December 1,

2041, December 1, 2043 and December 1, 2049. Redemption: The Series 2020 Bonds maturing after December 1, 2024 are subject to redemption at the

option of the City, either in whole or in part, in such order of maturity as the City shall determine, on any date on or after June 1, 2025, at a redemption price equal to 100% of the principal amount redeemed plus, in each case, accrued interest to the date fixed for redemption. See "THE SERIES 2020 BONDS – Redemption – Optional Redemption" herein.

The Series 2020 Bonds maturing on December 1, 2035, December 1, 2037, December 1,

2039, December 1, 2041, December 1, 2043 and December 1, 2049 are subject to mandatory sinking fund redemption prior to stated maturity. See "THE SERIES 2020 BONDS – Redemption – Mandatory Sinking Fund Redemption" herein.

Purpose: The Series 2020 Bonds are issued for the purpose of paying costs associated with the acquisition, construction, expansion, rehabilitation, and improvement of the City's municipal water system (the "Utility"). See "THE SERIES 2020 BONDS – Authorization and Purpose" herein.

Security: The Series 2020 Bonds will be special obligations of the City and are secured by a pledge

of the Net Revenues and moneys in the Special Funds. The Series 2020 Bonds are not general obligations of the City, the State of Ohio, or any political subdivision thereof, and are not secured by the full faith and credit of the City, the State, or any political subdivision thereof. See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2020 BONDS" herein."

Credit Ratings: The City has received a rating on the Series 2020 Bonds of "AA" from S&P Global Ratings

("S&P"), a division of S&P Global Inc. on the understanding that the Series 2020 Bonds will be insured by BAM upon their issuance. The Series 2020 Bonds also have an underlying rating of "Aa3" from Moody's Investors Service, Inc. ("Moody's"). See "RATINGS" herein.

vii

Tax Matters: In the opinion of Bond Counsel, (i) under existing law and assuming compliance with certain covenants and the accuracy of certain representations, interest on the Series 2020 Bonds is excluded from gross income for federal income tax purposes, is not treated as an item of tax preference for purposes of the alternative minimum income tax and is exempt from certain taxes imposed by the State and its political subdivisions. Interest on the Series 2020 Bonds may be subject to certain federal income taxes imposed on certain corporations, and certain taxpayers may have certain other adverse federal income tax consequences as a result of owning the Series 2020 Bonds. See "TAX MATTERS" herein.

Bond Insurance: The Series 2020 Bonds will be secured by a municipal bond insurance policy, to be issued on the date of delivery of the Series 2020 Bonds, securing the payment, when due, of the principal of and interest on the Series 2020 Bonds. (See "BOND INSURANCE.")

Bank Qualification: The City has not designated the Series 2020 Bonds as "qualified tax exempt obligations"

within the meaning of Section 265(b)(3) of the Code. Legal Opinion: Bricker & Eckler LLP Municipal Advisor: Bradley Payne, LLC Underwriter: Stifel, Nicolaus & Company, Incorporated Underwriter's Frost Brown Todd LLC Counsel: Trustee: The Huntington National Bank Book-Entry Only System: The Series 2020 Bonds are being issued as fully registered bonds in book entry form only

and book entry interests therein will be available for purchase in amounts of $5,000 and integral multiples thereof. Owners of book entry interests will not receive physical delivery of bond or note certificates. DTC or its nominee will receive all payments with respect to the Series 2020 Bonds from the Trustee. DTC is required by its rules and procedures to remit such payments to its participants for subsequent disbursement to owners of the book entry interests.

Delivery and Payment: It is expected that delivery of the Series 2020 Bonds in definitive form will be made through

DTC on or about May 20, 2020. The Series 2020 Bonds will be released to the Underwriter against payment in federal funds.

City Official: Questions concerning the Official Statement should be directed to Brad Lutz, Director of

Finance, City of Marysville, 209 South Main Street, Marysville, Ohio 43040. Telephone: (937) 645-7364.

viii

TABLE OF CONTENTS

REGARDING THIS OFFICIAL STATEMENT .............................................................................................. iii INVESTMENT CONSIDERATIONS .............................................................................................................. iv

General .................................................................................................................................................. iv Market for the Series 2020 Bonds ........................................................................................................ iv Prepayments of Principal ....................................................................................................................... v

BOND ISSUE SUMMARY ............................................................................................................................... vi TABLE OF CONTENTS ................................................................................................................................. viii INTRODUCTORY STATEMENT .................................................................................................................... 1 DEFINITIONS ..................................................................................................................................................... 2 THE SERIES 2020 BONDS ............................................................................................................................... 5

Authorization and Purpose ..................................................................................................................... 5 Form and Terms ..................................................................................................................................... 5 Redemption ............................................................................................................................................. 5

ESTIMATED SOURCES AND USES OF FUNDS .......................................................................................... 8 SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2020 BONDS ......................................... 8

General ................................................................................................................................................... 8 Production of Adequate Revenues and Coverage Ratio ....................................................................... 9 Issuance of Additional Bonds .............................................................................................................. 10

MUNICIPAL BANKRUPTCY ......................................................................................................................... 10 BOND INSURANCE ........................................................................................................................................ 10

Bond Insurance Policy ......................................................................................................................... 10 Build America Mutual Assurance Company ....................................................................................... 11 BAM GreenStar Bonds ........................................................................................................................ 12

RATINGS .......................................................................................................................................................... 13 UNDERWRITING ............................................................................................................................................ 14 MUNICIPAL ADVISOR .................................................................................................................................. 15 LITIGATION ..................................................................................................................................................... 15 LEGAL MATTERS ........................................................................................................................................... 15 TAX MATTERS ................................................................................................................................................ 16

General ................................................................................................................................................. 16 Original Issue Discount ........................................................................................................................ 17 Amortizable Bond Premium ................................................................................................................ 17

BOOK-ENTRY ONLY SYSTEM .................................................................................................................... 18 Revision of Book-Entry System - Replacement Bonds ...................................................................... 20

TRANSCRIPT AND CLOSING DOCUMENTS ............................................................................................ 20 CORONAVIRUS (COVID-19) ........................................................................................................................ 20 CONTINUING DISCLOSURE ........................................................................................................................ 21 CONCLUDING STATEMENT ........................................................................................................................ 23 APPENDIX A – THE CITY OF MARYSVILLE, OHIO ............................................................................. A-1

General Information ........................................................................................................................... A-1 Map of Geographic Area .................................................................................................................... A-2 Structure of Government .................................................................................................................... A-3 Principal Officials ............................................................................................................................... A-3 City Employees .................................................................................................................................. A-3 Pension Obligations ............................................................................................................................ A-4 City Services ....................................................................................................................................... A-4

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THE UTILITY ................................................................................................................................................. A-5 Water System Facilities ...................................................................................................................... A-5 Organization and Management .......................................................................................................... A-7 Historical and Future Growth of Use of the Utility ........................................................................... A-7 Customer Base .................................................................................................................................... A-8 Capital Improvements Plan .............................................................................................................. A-10 Utility Rates and Charges ................................................................................................................. A-11 Historical and Projected Revenues and Expenditures of the Utility ............................................... A-13

ECONOMY AND EMPLOYMENT ............................................................................................................ A-14 Economic Development ................................................................................................................... A-14 Building Permit Values .................................................................................................................... A-15 Labor Force Statistics ....................................................................................................................... A-16 Largest Employers ............................................................................................................................ A-17

CITY TAX BASE .......................................................................................................................................... A-18 Ad Valorem Taxes and Assessed Valuation .................................................................................... A-18 State Reimbursement of Property Tax Revenues ............................................................................ A-19 Assessed Valuation ........................................................................................................................... A-20 Largest Taxpayers in the City .......................................................................................................... A-21 Property Tax Rate Calculations ....................................................................................................... A-22 Property Tax Revenues .................................................................................................................... A-22 Budgeting, Tax Levy and Appropriations Procedure ...................................................................... A-23 Investment of Funds ......................................................................................................................... A-23 Income Tax Revenues ...................................................................................................................... A-24

CITY DEBT AND DEBT LIMITATIONS .................................................................................................. A-25 Statutory Debt Limitations Generally .............................................................................................. A-25 Charter Millage Limitation .............................................................................................................. A-27 Bond Anticipation Notes .................................................................................................................. A-27 City General Obligation Debt Currently Outstanding ..................................................................... A-28 Leases and Other Long Term Obligations ....................................................................................... A-29 Debt Service Requirements for the Bonds ....................................................................................... A-30 Future Financings ............................................................................................................................. A-31 City Insurance ................................................................................................................................... A-31 Cyber-Security .................................................................................................................................. A-32

FINANCES OF THE CITY .......................................................................................................................... A-32 Financial Reports and Audits ........................................................................................................... A-33 General Fund Revenue Sources ....................................................................................................... A-33

APPENDIX B – Summary of Certain Provisions of the Indenture .......................................................... B-1 APPENDIX C – Audited Financial Statements for the Fiscal Year Ended December 31, 2018 .............. C-1 APPENDIX D – Form of Approving Legal Opinion of Bricker & Eckler LLP ....................................... D-1 APPENDIX E – Form of Closing Certificates .......................................................................................... E-1 APPENDIX F – Form of Continuing Disclosure Certificate ..................................................................... F-1 APPENDIX G – Specimen Municipal Bond Insurance Policy and Debt Service Reserve Insurance

Policy............................................................................................................................. G-1



INTRODUCTORY STATEMENT This Official Statement has been prepared by the City in connection with the original issuance and sale by the City of the Series 2020 Bonds identified on the cover page hereof. All financial and other information presented herein has been provided by the City from its records, except for information expressly attributed to other sources. The presentation of information, including tables of receipts from taxes and other sources, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the City or the City's municipal water system (the "Utility"). No representation is made that past experience, as might be shown by such financial and other information, will necessarily continue or be repeated in the future. Certain statements contained in this Official Statement, including, without limitation, statements containing the words "believes," "anticipates," "expects" and words of similar import, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the City to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, general economic conditions, demographic changes, and existing government regulations and changes in, or the failure to comply with, government regulations. Certain of these factors are discussed in more detail elsewhere in this Official Statement. Given these uncertainties, readers of this Official Statement and investors are cautioned not to place undue reliance on such forward-looking statements. This Official Statement should be considered in its entirety and no subject discussed should be considered less important than any other subject by reason of its location in the text. Reference should be made to laws, reports or documents referred to for more complete information regarding their contents. References herein to provisions of Ohio law, whether codified in the Ohio Revised Code (the "Revised Code") or uncodified, the Ohio Constitution, or federal law, are references to such provisions as they presently exist. Provisions of the Ohio law and Constitution and federal law may in the future, and from time to time, be amended, repealed or supplemented. Unless otherwise defined herein, capitalized terms shall have the meanings given to them under "DEFINITIONS" herein or in the Indenture. For information regarding the Indenture, see APPENDIX B - "SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE" in this Official Statement. Additional information relating to the financial condition of the City may be obtained by contacting its Director of Finance, Brad Lutz, City of Marysville, 209 South Main Street, Marysville, Ohio 43040, telephone: (937) 645-7364.

2

DEFINITIONS The following capitalized terms, as used in this Official Statement and the Appendices attached

hereto, have the following meanings unless otherwise indicated:

"Additional Bonds" means any notes, bonds or other obligations of the City that may be issued on parity with the Series 2016 Bonds and the Series 2020 Bonds pursuant to the Indenture.

"Annual Report" means any annual report provided by the City referred to in this Official Statement and any appendix hereto.

"Bankruptcy Code" means Title 11 of the United States Code.

"Bond Counsel" means Bricker & Eckler LLP, Columbus, Ohio.

"Bond" or "Bonds" means the Series 2016 Bonds, Series 2020 Bonds and any Additional Bonds.

"Bond Insurer" or "BAM" means Build America Mutual Assurance Company, or any successor thereto.

"Bond Reserve Fund Facility" means the debt service reserve fund insurance policy.

"Bond Reserve Fund Facility Provider" or "BAM" means Build America Mutual Assurance Company, or any successor thereto.

"Charter" means the Charter of the City.

"City" or "Issuer" means the City of Marysville, Ohio.

"Code" means the Internal Revenue Code of 1986, as amended.

"Council" means the City Council of the City.

"County" means Union County, Ohio.

"County Auditor" means the County Auditor of the County.

"County Prosecutor" means the County Prosecutor of the County.

"County Treasurer" means the County Treasurer of the County.

"Cover" means the cover page and the inside cover of this Official Statement.

"Director of Finance" means the Director of Finance of the City.

"EMMA" means the Electronic Municipal Market Access System of the MSRB.

"First Supplemental Indenture" means, the First Supplemental Indenture of Mortgage, dated as of November 15, 1993, between the City and the Original Trustee, that secured the Series 1993 Bonds.

3

"Fifth Supplemental Indenture" means, the Fifth Supplemental Indenture of Mortgage, dated as of June 15, 2016, between the City and the Trustee, that secures the Series 2016 Bonds.

"Fourth Supplemental Indenture" means, the Fourth Supplemental Indenture of Mortgage, dated as of October 15, 2007, between the City and the Trustee, that secured the Series 2007 Bonds.

"Indenture" means, collectively, the Original Indenture, the First Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, and the Sixth Supplemental Indenture, as amended and supplemented from time to time.

"MSA" means the Columbus Metropolitan Statistical Area, as defined by the United States Office of Management and Budget.

"MSRB" means the Municipal Securities Rulemaking Board. "Municipal Advisor" means Bradley Payne, LLC. "OMAC" means the Ohio Municipal Advisory Council.

"Original Indenture" means, the Indenture of Mortgage, dated as of June 1, 1991, between the City and the Original Trustee.

"Original Trustee" means The Fifth Third Bank.

"Revised Code" means the Ohio Revised Code.

"Second Supplemental Indenture" means, the Second Supplemental Indenture of Mortgage, dated as of April 1, 2002, between the City and the Trustee, that secured the Series 2002 Bonds.

"Series 2002 Bonds" means the City's $3,820,000 Water System Mortgage Revenue Bonds, Series 2002, dated April 1, 2002, which are no longer outstanding.

"Series 2003 Bonds" means the City's $9,115,000 Water System Mortgage Revenue Bonds, Series 2003, dated October 15, 2003, which are no longer outstanding.

"Series 2007 Bonds" means the City's $21,335,000 Water System Mortgage Revenue Refunding Bonds, Series 2007, dated October 17, 2007, which are no longer outstanding.

"Series 2016 Bonds" means the City's $19,560,000 Water System Mortgage Revenue Refunding Bonds, Series 2016, dated June 15, 2016.

"Series 2020 Bonds" means the City's $40,465,000 Water System Mortgage Revenue Bonds, Series 2020, dated May 20, 2020.

"Sixth Supplemental Indenture" means, the Sixth Supplemental Indenture of Mortgage, dated as of May 20, 2020, between the City and the Trustee, that secures the Series 2020 Bonds.

"State" or "Ohio" means the State of Ohio.

"State Auditor" means Auditor of the State.

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"Tax Commissioner" means the Tax Commissioner of the State.

"Third Supplemental Indenture" means, the Third Supplemental Indenture of Mortgage, dated as of November 1, 2003, between the City and the Trustee, that secured the Series 2003 Bonds.

"Trustee" means The Huntington National Bank, as successor to the Original Trustee. "Underwriter" means Stifel, Nicolaus & Company, Incorporated. "Utility" means the City's municipal water system.


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THE SERIES 2020 BONDS Authorization and Purpose

The Series 2020 Bonds are authorized by an ordinance (the "Bond Ordinance") of the City Council of the City (the "Council") adopted on February 10, 2020, and are issued pursuant to Article XVIII, Section 12 of the Ohio Constitution, which permits the City to issue revenue bonds, such as the Series 2020 Bonds, under the provisions of its Charter.

The Series 2020 Bonds are special limited obligations of the City and do not constitute a pledge of the full faith and credit of the City. The proceeds from the Series 2020 Bonds will be used for the purpose of paying costs associated with the acquisition, construction, expansion, rehabilitation, and improvement of the City's municipal water system (the "Utility"). For a description of the Utility, see "THE UTILITY" herein. Upon issuance and delivery, the Series 2020 Bonds will be secured under the Indenture. The Indenture provides for a pledge of the Net Revenues and the moneys in the Special Funds, a rate covenant, and a requirement to maintain the debt service reserve fund to secure all Bonds, each as hereinafter described. See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2020 BONDS." Form and Terms

The Series 2020 Bonds will be issued in fully registered form and will bear interest, at the rates set forth on the Cover hereof based on a 360-day year, from their dated date until maturity. The Series 2020 Bonds will be in denominations of $5,000 or any integral multiple thereof, and will be numbered consecutively from R-1 upward as determined by the Director of Finance of the City.

The Series 2020 Bonds will bear interest payable on June 1 and December 1 of each year, commencing December 1, 2020, at the rates set forth on the Cover hereof and will be payable as to principal on December 1 in the years set forth on the Cover hereof. Principal of and interest on the Series 2020 Bonds will be payable at maturity in immediately available funds, in lawful money of the United States of America, at the designated office of the Trustee. Redemption

Mandatory Sinking Fund Redemption

The Series 2020 Bonds maturing on December 1, 2035 are subject to mandatory sinking fund redemption at a redemption price of 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 in the years and in the respective principal amounts as follows:

Year Principal Amount to be Redeemed

2034 $900,000

The remaining principal amount of such Series 2020 Bonds ($970,000) will mature at stated maturity on December 1, 2035.

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2036 $1,045,000

The remaining principal amount of such Series 2020 Bonds ($1,110,000) will mature at stated maturity on December 1, 2037.



2038 $1,180,000




2040 $2,215,000




2042 $2,395,000


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2046 $2,805,0002047 2,890,0002048 2,975,000

The remaining principal amount of such Series 2020 Bonds ($3,065,000) will mature at stated

maturity on December 1, 2049.

Optional Redemption

The Series 2020 Bonds maturing after December 1, 2024 are subject to redemption at the option of

the City, either in whole or in part, in such order of maturity as the City shall determine, on any date on or after June 1, 2025 at a redemption price equal to 100% of the principal amount redeemed plus, in each case, accrued interest to the date fixed for redemption.

When partial redemption is authorized, the Series 2020 Bonds or portions thereof to be redeemed will be selected by lot within a maturity in such manner as the Trustee may determine, provided, however, that the portion of any such Series 2020 Bond so selected will be in the amount of $5,000 or any integral multiple thereof.

The notice of the call for redemption of the Series 2020 Bonds to be redeemed shall identify (i) by designation, letters, numbers or other distinguishing marks, such Series 2020 Bonds or portions thereof to be redeemed, (ii) the redemption price to be paid, (iii) the date fixed for redemption, and (iv) the place or places where the amounts due upon redemption are payable. From and after the specified redemption date, interest on such Series 2020 Bonds or portions thereof called for redemption shall cease to accrue. Such notice shall be sent by first class mail to each such registered holder at the address shown in Series 2020 Bond registration records at least 30 days prior to the redemption date. Failure to receive such notice or any defect therein shall not affect the validity of the proceedings for the redemption of any such Series 2020 Bond.


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ESTIMATED SOURCES AND USES OF FUNDS

The proceeds of the Series 2020 Bonds will be applied as follows:

Sources

Par Value of the Series 2020 Bonds $ 40,465,000.00 Net Original Bond Premium 1,380,443.65

Total Sources $41,845,443.65 Uses

Deposit to Construction Fund $40,460,176.80 Deposit to Bond Fund 495,042.79 Costs of Issuance1 890,224.06

Total Uses $41,845,443.65

1 Includes Underwriter's compensation, rating fees, legal fees, Trustee fees, municipal bond insurance premium, Bond Reserve Fund Facility premium, Municipal Advisor fees, printing and distribution costs, and other miscellaneous expenses.

SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2020 BONDS

General

The Series 2020 Bonds and Additional Bonds which may be issued on a parity therewith under the Indenture are special obligations of the City payable from the Net Revenues and moneys in the Special Funds, each as hereinafter defined. The Series 2020 Bonds are secured by the pledge of the Net Revenues and the Special Funds and by a first mortgage lien, subject to Permitted Encumbrances. In addition, a franchise to operate the Utility for a period of 20 years after foreclosure will be granted to the purchaser at any foreclosure sale under the Indenture. Pursuant to the Indenture, the Special Funds consist of the Bond Fund, the Bond Reserve Fund, the Construction Fund, the Replacement and Improvement Fund, and the Water System Reserve Fund. The Bond Reserve Fund for the Series 2020 Bonds will be funded at closing of the Series 2020 Bonds through a Bond Reserve Fund Facility provided by the Bond Reserve Fund Facility Provider.

The Series 2020 Bonds are further secured by the municipal bond insurance policy provided by the

Bond Insurer as described herein. THE SERIES 2020 BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY, THE

STATE, OR ANY POLITICAL SUBDIVISION THEREOF, AND ARE NOT SECURED BY THE FULL FAITH AND CREDIT OF THE CITY, THE STATE, OR ANY POLITICAL SUBDIVISION THEREOF, AND THE OWNERS AND HOLDERS OF THE SERIES 2020 BONDS DO NOT HAVE THE RIGHT TO HAVE ANY EXCISES OR TAXES LEVIED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE CITY, FOR THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS.

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The table below sets forth the historical and projected Net Revenues for the Utility from 2015 through 2023:

Historical and Projected Net Revenues for the Utility City of Marysville, Ohio

Fiscal Year

Net Revenues

2015 $4,324,4152016 5,626,3172017 5,750,2652018 6,435,4962019 6,604,7262020* 4,725,4022021* 4,867,1652022* 5,013,1792023* 5,163,575

Source: City of Marysville * Projected

The table below sets forth historical and projected debt service coverage for the Bonds since 2015:

Debt Service Coverage for the Bonds City of Marysville, Ohio

Fiscal Year

Bond Service Charges

Net Revenues

Coverage Ratio

2015 $1,119,769 $4,324,415 3.862016 1,403,060 5,626,317 4.012017 1,796,800 5,750,265 3.202018 1,571,300 6,435,496 4.102019 1,545,050 6,604,726 4.272020* 2,520,414 4,725,402 1.872021* 3,158,200 4,867,165 1.542022* 3,154,800 5,013,179 1.592023* 3,154,800 5,163,575 1.64

* Projected Source: City of Marysville

Production of Adequate Revenues and Coverage Ratio

Section 503 of the Original Indenture requires that the Net Revenues of the Utility be equal to not less than 110% of the aggregate amount of bond service charges payable on the Bonds during each Fiscal Year. In the event that such coverage ratio is not met for two consecutive Fiscal Years, the City is required to take certain steps under Section 503 of the Original Indenture with respect to the rates, charges, and operation of the Utility in order to ensure that the 110% coverage ratio is restored. Failure by the City to take such action will be deemed an Event of Default under Section 601(c) of the Original Indenture. See "APPENDIX B – Summary of Certain Provisions of the Indenture – Production of Adequate Revenues" herein.

Pursuant to Section 503 of the Original Indenture, the City is in compliance with the required 110%

coverage ratio.

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Issuance of Additional Bonds

The Series 2020 Bonds are being issued as Additional Bonds under Section 205 of the Original Indenture. Section 205 of the Original Indenture permits the City to issue Additional Bonds from time to time for the purpose of (i) refunding any Bonds issued for Utility purposes, (ii) making replacements, extensions or improvements to the Utility, or (iii) any combination of the (i) and (ii). Such Additional Bonds are equally and ratably secured by the Net Revenues and the Special Funds with any other series of Bonds issued under the Indenture, including the Series 2016 Bonds and Series 2020 Bonds. See "APPENDIX B – Summary of Certain Provisions of the Indenture – Issuance of Additional Bonds" herein.

Section 205 of the Original Indenture further provides that the City may issue other obligations secured by a security interest in the Net Revenues which are junior in lien to the Bonds; provided that certain certifications are made with respect to the adequacy of the Net Revenues and debt service on such obligations. See "APPENDIX B – Summary of Certain Provisions of the Indenture – Issuance of Additional Bonds" herein.

MUNICIPAL BANKRUPTCY An Ohio municipality may file for bankruptcy under Chapter 9 of the Bankruptcy Code if it meets certain prerequisites under both federal and State law. Section 109(c) of the Bankruptcy Code sets forth the requirements for a State political subdivision to file for bankruptcy protection. In addition to requiring the municipality to be insolvent1, the municipality must be specifically authorized, in its capacity as a municipality or by name, to be a debtor under such chapter by State law, or by a governmental officer or organization empowered by State law to authorize such entity to be a debtor under such chapter2. With regard to State law, Revised Code Section 133.36 requires that a political subdivision which desires to file bankruptcy seek and obtain permission of the Tax Commissioner. The foregoing federal and State laws also permit an Ohio county to initiate Chapter 9 proceedings which, because a county collects certain revenues on behalf of a municipality (particularly ad valorem property taxes), may adversely affect the financial condition of such municipality.

BOND INSURANCE

Bond Insurance Policy

Concurrently with the issuance of the Series 2020 Bonds, Build America Mutual Assurance Company ("BAM") will issue its Municipal Bond Insurance Policy for the Series 2020 Bonds (the "Policy"). The Policy guarantees the scheduled payment of principal of and interest on the Series 2020 Bonds when due as set forth in the form of the Policy included as an appendix to this Official Statement.

The Policy is not covered by any insurance security or guaranty fund established under New York,

California, Connecticut or Florida insurance law.

1 11 U.S.C. Section 101(32)(C) requires that in order to be "insolvent" a municipality must not be paying its debts as they come due. 2 See 11 U.S.C. Section 109(c)(2).

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Build America Mutual Assurance Company

BAM is a New York domiciled mutual insurance corporation and is licensed to conduct financial guaranty insurance business in all fifty states of the United States and the District of Columbia. BAM provides credit enhancement products solely to issuers in the U.S. public finance markets. BAM will only insure obligations of states, political subdivisions, integral parts of states or political subdivisions or entities otherwise eligible for the exclusion of income under section 115 of the U.S. Internal Revenue Code of 1986, as amended. No member of BAM is liable for the obligations of BAM. The address of the principal executive offices of BAM is: 200 Liberty Street, 27th Floor, New York, New York 10281, its telephone number is: 212-235-2500, and its website is located at: www.buildamerica.com.

BAM is licensed and subject to regulation as a financial guaranty insurance corporation under the

laws of the State of New York and in particular Articles 41 and 69 of the New York Insurance Law.

BAM's financial strength is rated "AA/Stable" by S&P Global Ratings, a business unit of Standard & Poor's Financial Services LLC ("S&P"). An explanation of the significance of the rating and current reports may be obtained from S&P at www.standardandpoors.com. The rating of BAM should be evaluated independently. The rating reflects the S&P's current assessment of the creditworthiness of BAM and its ability to pay claims on its policies of insurance. The above rating is not a recommendation to buy, sell or hold the Series 2020 Bonds, and such rating is subject to revision or withdrawal at any time by S&P, including withdrawal initiated at the request of BAM in its sole discretion. Any downward revision or withdrawal of the above rating may have an adverse effect on the market price of the Series 2020 Bonds. BAM only guarantees scheduled principal and scheduled interest payments payable by the Issuer of the Series 2020 Bonds on the date(s) when such amounts were initially scheduled to become due and payable (subject to and in accordance with the terms of the Policy), and BAM does not guarantee the market price or liquidity of the Series 2020 Bonds, nor does it guarantee that the rating on the Series 2020 Bonds will not be revised or withdrawn.

Capitalization of BAM

BAM's total admitted assets, total liabilities, and total capital and surplus, as of December 31, 2019 and as prepared in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services were $534.9 million, $132.5 million and $402.4 million, respectively.

BAM is party to a first loss reinsurance treaty that provides first loss protection up to a maximum of 15% of the par amount outstanding for each policy issued by BAM, subject to certain limitations and restrictions.

BAM's most recent Statutory Annual Statement, which has been filed with the New York State Insurance Department and posted on BAM's website at www.buildamerica.com, is incorporated herein by reference and may be obtained, without charge, upon request to BAM at its address provided above (Attention: Finance Department). Future financial statements will similarly be made available when published.

BAM makes no representation regarding the Series 2020 Bonds or the advisability of investing in the Series 2020 Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading "BOND INSURANCE".

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BAM GreenStar Bonds

The Series 2020 Bonds have been designated BAM GreenStar Bonds because BAM has determined that the use of bond proceeds by the Issuer as described in this Official Statement and in any additional information obtained by BAM aligns with one of the Green Bond Principals (GBPs) developed by the International Capital Markets Association (ICMA). The GBPs were developed by the ICMA with the goal of establishing universally accepted guidelines for the issuance of green bonds, and one of the key requirements addresses the use of proceeds. BAM has been identified by the ICMA as an observer organization that is active in the field of green and/or social or sustainability finance and is a Climate Bond Initiative approved verifier. The Credit Profile prepared by BAM for the Series 2020 Bonds will identify which of the following GBP categories applies to the Series 2020 Bonds:

renewable energy energy efficiency pollution prevention and control environmentally sustainable management of living natural resources and land use terrestrial and aquatic biodiversity clean transportation climate change adaptation sustainable water and wastewater management green buildings

Each of the GBPs correlates to one of the following UN Sustainable Development Goals which

will also be included in the Credit Profile for the Series 2020 Bonds:

clean water and sanitation affordable and clean energy sustainable cities and communities industry innovation and infrastructure responsible consumption and production climate action life below water life on land

For projects under construction, the bond obligor has agreed to furnish annual information to BAM

on the status of the project until completion, which will be reflected in the BAM Credit Profile for the Series 2020 Bonds.

The BAM GreenStar designation is based upon information obtained by BAM, which information BAM believes to be reliable, at the time of the issuance of the Series 2020 Bonds. BAM does not charge a fee in connection with the designation, does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. The designation is provided on an "AS IS" basis. BAM makes no representation or warranty, express or implied, including, but not limited to, the accuracy, results, timeliness, completeness, merchantability or fitness for any particular purpose with respect to the designation. A complete description of BAM GreenStar, and its limitations and terms of use, are available on BAM's website https://buildamerica.com/greenstar and https://buildamerica.com/terms-of-use and incorporated herein by reference. The BAM GreenStar designation is determined solely by BAM; it has not been reviewed or approved by the Issuer of or the Underwriter for the Series 2020 Bonds, and the Issuer and Underwriter assume no responsibility for such designation.

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Additional Information Available from BAM

Credit Insights Videos. For certain BAM-insured issues, BAM produces and posts a brief Credit Insights video that provides a discussion of the obligor and some of the key factors BAM's analysts and credit committee considered when approving the credit for insurance. The Credit Insights videos are easily accessible on BAM's website at buildamerica.com/creditinsights/. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)

Credit Profiles. Prior to the pricing of bonds that BAM has been selected to insure, BAM may prepare a pre-sale Credit Profile for those bonds. These pre-sale Credit Profiles provide information about the sector designation (e.g. general obligation, sales tax); a preliminary summary of financial information and key ratios; and demographic and economic data relevant to the obligor, if available. Subsequent to closing, for any offering that includes bonds insured by BAM, any pre-sale Credit Profile will be updated and superseded by a final Credit Profile to include information about the gross par insured by CUSIP, maturity and coupon. BAM pre-sale and final Credit Profiles are easily accessible on BAM's website at buildamerica.com/obligor/. BAM will produce a Credit Profile for all bonds insured by BAM, whether or not a pre-sale Credit Profile has been prepared for such bonds. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)

Disclaimers. The Credit Profiles and the Credit Insights videos and the information contained therein are not recommendations to purchase, hold or sell securities or to make any investment decisions. Credit-related and other analyses and statements in the Credit Profiles and the Credit Insights videos are statements of opinion as of the date expressed, and BAM assumes no responsibility to update the content of such material. The Credit Profiles and Credit Insight videos are prepared by BAM; they have not been reviewed or approved by the Issuer of or the Underwriter for the Series 2020 Bonds, and the Issuer and Underwriter assume no responsibility for their content.

BAM receives compensation (an insurance premium) for the insurance that it is providing with respect to the Series 2020 Bonds. Neither BAM nor any affiliate of BAM has purchased, or committed to purchase, any of the Series 2020 Bonds, whether at the initial offering or otherwise.

RATINGS

As noted on the Cover, the City has received a rating from S&P Global Ratings ("S&P"), a division of S&P Global Inc. which has rated the Series 2020 Bonds "AA" (the "Insured Rating"), on the understanding that the Series 2020 Bonds will be insured by the Bond Insurer upon their issuance. The Series 2020 Bonds also have an underlying rating of "Aa3" from Moody's Investors Service, Inc., ("Moody's"). No application for a rating has been made to any other rating agency.

The Insured Rating reflects only the views of S&P. Any explanation of the significance of the Insured Rating may only be obtained from S&P Global Ratings, a division of S&P Global Inc., 55 Water Street, New York, New York 10041, telephone (212) 438-2000; website: www.standardandpoors.com.

The underlying rating reflects only the views of Moody's. Any explanation of the significance of

the underlying rating may only be obtained from Moody's Investors Service, Inc., 7 World Trade Center, New York, New York 10007, telephone (212) 553-0300, website: www.moodys.com.

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The City furnished to Moody's certain information and materials, some of which may not have been included in this Official Statement, relating to the Series 2020 Bonds and the City. Generally, rating agencies base their ratings on such information and materials, as well as investigation, studies and assumptions by the rating agencies. Such ratings are not recommendations to buy, sell or hold the Series 2020 Bonds.

The Insured Rating assumes, upon delivery of the Series 2020 Bonds, the issuance of the Policy by

the Bond Insurer, a copy of which is attached to this Official Statement as APPENDIX G. See "BOND INSURANCE." Pursuant to the Policy, the Bond Insurer will insure the payment, when due, of principal of and interest on the Series 2020 Bonds, as described in this Official Statement.

The ongoing stability of the Bond Insurer and the Bond Insurer's ability to pay principal of and interest on the Series 2020 Bonds, and otherwise to perform its obligation under the Policy, are the primary basis for the Insured Rating assigned to the Series 2020 Bonds and the ultimate security for the payment of principal of and interest on the Series 2020 Bonds. A decline in the financial condition of the Bond Insurer could have an adverse effect on the Insured Rating and, consequently, on the market price of the Series 2020 Bonds.

There can be no assurance that a rating, when assigned, will continue for any given period of time or that it will not be lowered or withdrawn entirely by a rating agency if, in its judgment, circumstances so warrant. In addition, the City currently expects to provide to Moody's (but assumes no obligation to furnish to the Underwriter or the holders from time to time of the Series 2020 Bonds) further information and materials that it or they may request. The City does not, however, obligate itself hereby to furnish such information and materials, and may issue unrated bonds and notes from time to time. Failure by the City to furnish such information and materials, or the issuance of unrated bonds or notes, may result in the suspension or withdrawal of Moody's underlying rating on the Series 2020 Bonds. Any lowering, suspension or withdrawal of such rating may have an adverse effect on the marketability or market price of the Series 2020 Bonds.

UNDERWRITING Stifel, Nicolaus & Company, Incorporated (the "Underwriter") has agreed, pursuant to the Bond Purchase Agreement, dated April 29, 2020 (the "Bond Purchase Agreement"), to purchase all, but not less than all, of the Series 2020 Bonds at an aggregate purchase price of $41,592,736.15 (the "Purchase Price"), which is equal to the principal amount of the Series 2020 Bonds ($40,465,000.00), plus net original issue premium ($1,380,443.65), less Underwriter's discount ($252,707.50), plus accrued interest thereon, if any, to the date of delivery.

The Underwriter is purchasing the Series 2020 Bonds as originally issued for purpose of resale. The Underwriter reserves the right to join with dealers and other underwriters in offering the Series 2020 Bonds to the public. The Underwriter may offer and sell the Series 2020 Bonds to certain dealers (including dealer banks and dealers depositing the Series 2020 Bonds into unit investment trusts, certain of which may be sponsored or managed by the Underwriter), and others at prices lower than the public offering price noted on the Cover. The initial offering prices of the Series 2020 Bonds may be changed, from time to time, by the Underwriter.

The Underwriter has agreed to retain $203,557.81 from the Purchase Price to pay certain costs of issuance of the Series 2020 Bonds, including municipal bond insurance premium ($141,964.13) and the Bond Reserve Fund Facility premium ($61,593.68), which amounts will be wired to the Bond Insurer and Bond Reserve Fund Facility Provider on behalf of the City at closing.

The Underwriter has agreed to wire funds to the Trustee at closing for further distribution by the Trustee to pay certain costs of issuance of the Series 2020 Bonds on behalf of the City, including Municipal

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Advisor fees, rating fees, legal fees, Trustee fess, printing and distribution costs, and other miscellaneous expenses. An amount of $433,958.75 shall be deposited with the Trustee from the proceeds of the Series 2020 Bonds for this purpose and disbursed in accordance with instructions from the Underwriter.

The obligation of the Underwriter to accept delivery of the Series 2020 Bonds is subject to the various conditions set forth in the Bond Purchase Agreement. The Underwriter is obligated to purchase all of the Series 2020 Bonds if any of the Series 2020 Bonds are purchased.

MUNICIPAL ADVISOR

The City has retained Bradley Payne, LLC, as municipal advisor (the "Municipal Advisor") to provide financial advice in connection with the City's issuance of the Series 2020 Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities.

LITIGATION

To the knowledge of the appropriate officials of the City, no litigation or administrative action or proceeding is pending or threatened restraining or enjoining, or seeking to restrain or enjoin, the issuance and delivery of the Series 2020 Bonds, imposition or amounts of the Utility's rates, or the validity and enforceability of the Indenture securing the Series 2020 Bonds or contesting or questioning the proceedings and authority under which the Series 2020 Bonds and the Indenture have been authorized and under which the Series 2020 Bonds are to be issued, sold, executed, and delivered and the Indenture is to be executed and delivered, or the validity of the Series 2020 Bonds and Indenture. A no-litigation certificate to such effect will be delivered by the City to the Underwriter at the time of original delivery of the Series 2020 Bonds to such Underwriter. In common with other political subdivisions, the City from time to time receives notices of claims for money damages. In the opinion of officials of the City, any such claims outstanding, regardless of their merit, are not in excess of the City's insurance coverage.

LEGAL MATTERS Legal matters incident to the issuance of the Series 2020 Bonds and with regard to the excludability of the interest on the Series 2020 Bonds from gross income for federal income tax purposes (see "TAX MATTERS" herein) are subject to the approving opinion of Bricker & Eckler LLP, Bond Counsel to the City. A signed copy of that opinion will be delivered to the Underwriter at the time of original delivery. Assuming no change in applicable law prior to the date of delivery of such opinion, the opinion will be substantially in the form attached hereto as APPENDIX D. The opinion will speak only as of its date, and subsequent distribution of it by recirculation of the Official Statement or otherwise shall create no implication that Bond Counsel has reviewed or expresses any opinion concerning any of the matters referred to in the opinion subsequent to the date thereof. Certain legal matters will be passed upon for the Underwriter by their counsel, Frost Brown Todd LLC, Columbus, Ohio. While Bond Counsel has participated in the preparation of portions of this Official Statement, it has not been engaged to confirm or verify, and expresses and will express no opinion as to the accuracy, completeness or fairness of any of the statements in this Official Statement, including its appendices (other than APPENDIX D), or in any other reports, financial information, offering or disclosure documents or

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other information pertaining to the City or the Series 2020 Bonds that may be prepared or made available by the City or others to the holders of the Series 2020 Bonds or others.

TAX MATTERS General

In the opinion of Bricker & Eckler LLP, Bond Counsel, under existing law interest on the Series 2020 Bonds is excluded from gross income for federal income tax purposes under Section 103(a) of the Code, and is not treated as an item of tax preference under Section 57 of the Code for purposes of the alternative minimum tax. Further, the Series 2020 Bonds are not "private activity bonds" as defined in Section 141(a) of the Code.

Interest on the Series 2020 Bonds, the transfer thereof, and any profit made on their sale, exchange or other disposition, are exempt from the Ohio personal income tax, the Ohio commercial activity tax, the net income base of the Ohio corporate franchise tax, and municipal, school district, and joint economic development district income taxes in Ohio.

The opinion on tax matters will be based on and will assume the accuracy of certain representations and certifications made by Council and others, and the compliance with certain covenants of the City, to be contained in the transcript of proceedings and which are intended to evidence and assure the foregoing, including that the Series 2020 Bonds are and will remain obligations the interest on which is excluded from gross income for federal income tax purposes. Bond Counsel has not and will not independently verify the accuracy of such certifications and representations. The City has not designated the Series 2020 Bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3) of the Code. The Code prescribes a number of qualifications and conditions for the interest on state and local government obligations to be and remain excluded from gross income for federal income tax purposes some of which, including provisions for the rebate by the City of certain investment earnings to the federal government, require future or continued compliance after issuance of the obligations in order for the interest to be and continue to be so excluded from the date of issuance. Noncompliance with these requirements could cause the interest on the Series 2020 Bonds to be included in gross income for federal income tax purposes and thus to be subject to regular federal income tax retroactively to the date of their issuance. The City has covenanted to take such actions that may be required of it for the interest on the Series 2020 Bonds to be and remain excluded from gross income for federal income tax purposes, and not to take any actions which would adversely affect that exclusion. Under the Code, interest on the Series 2020 Bonds may be subject to a branch profits tax imposed on certain foreign corporations doing business in the United States of America, and a tax imposed on excess net passive income of certain S corporations. Under the Code, the exclusion of interest from gross income for federal income tax purposes can have certain adverse federal income tax consequences on items of income or deductions for certain taxpayers, including among them financial institutions, certain insurance companies, recipients of Social Security and Railroad Retirement benefits, and those that are deemed to incur or continue indebtedness to acquire or carry tax-exempt obligations and individuals otherwise eligible for the earned income tax credit. The applicability and extent of these or other tax consequences will depend upon the particular tax status or other items of income and expenses of the holders of the Series 2020 Bonds. Bond Counsel will express no opinion and make no representation regarding such consequences.

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From time to time, legislative proposals are pending in the United States Congress that would, if enacted, alter or amend one or more of the federal tax matters referred to above in certain respects or would adversely affect the market value of the Series 2020 Bonds. Court proceedings may also be filed, the outcome of which could modify the tax treatment of obligations such as the Series 2020 Bonds. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of the Series 2020 Bonds will not have an adverse effect on the tax status of interest or other income on the Series 2020 Bonds or the market value or marketability of the Series 2020 Bonds. Prospective purchasers of the Series 2020 Bonds should consult their own tax advisers regarding pending or proposed federal and state tax legislation and court proceedings, as to all of which Bond Counsel expresses no opinion. Original Issue Discount

Certain of the Series 2020 Bonds may be sold to the public at a price of less than 100% of their face amount (the "Discount Bonds"). The following information, which has not been included in the opinion of Bond Counsel, may be helpful to prospective purchasers of the Discount Bonds.

Under present federal income tax law, original issue discount (i.e., the difference between the issue price, as hereinafter defined, of a Discount Bond and the stated redemption price at maturity of such Discount Bond), is treated as accruing ("accreted") over the term of such Discount Bond. The issue price is the price at which a substantial amount of the Discount Bonds is sold to the public (excluding bond houses, brokers or similar persons acting in the capacity of underwriters or wholesalers). In general, the amount of original issue discount that is to be accreted in each "accretion period" will equal (a) the issue price of that Discount Bond, increased by the amount of original issue discount that has been accreted in all prior accretion periods, multiplied by (b) the initial offering yield of that Discount Bond reflected on the Cover of this Official Statement (determined on the basis of compounding at the close of each accretion period and properly adjusted for the length of the accretion period), minus interest actually paid during such accretion period. For these purposes, "accretion period" means a six-month period (or shorter period from the date the Discount Bond was issued) which ends on a day in the calendar year corresponding to the maturity date of that Discount Bond or the date six months before such maturity date.

The amount of original issue discount so accreted in a particular accretion period will be considered to accrete ratably on each day of the accretion period. Such accreted amount is used for purposes of determining the adjusted basis for federal income tax purposes of the holder of such Discount Bond but is not included in such holder's gross income for federal income tax purposes. Consequently, a purchaser who buys a Discount Bond in the initial offering at the issue price and holds such Discount Bond to its maturity would not realize any gain or loss for federal income tax purposes upon payment of the stated redemption price of that Discount Bond at maturity.

Amortizable Bond Premium

Certain of the Series 2020 Bonds may be sold at issue prices greater than the principal amount payable at maturity or earlier call date (the "Premium Bonds"). The following information, which has not been included in the opinion of Bond Counsel, may be helpful to prospective purchasers of the Premium Bonds. Premium Bonds will be considered to be issuable with amortizable bond premium (the "Bond Premium"). A taxpayer who acquires a Premium Bond in the initial public offering will be required to adjust his or her basis in the Premium Bond downward as a result of the amortization of the Bond Premium, pursuant to Section 1016(a)(5) of the Code. The amount of amortizable Bond Premium will be computed on the basis of the taxpayer's yield to maturity with compounding at the end of each accrual period. Rules for determining (i) the amount of amortizable Bond Premium and (ii) the amount amortizable in a particular

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year are set forth at Section 171(b) of the Code. No income tax deduction for the amount of amortizable Bond Premium will be allowed to a holder pursuant in Section 171(a)(2) of the Code. The amortization of Bond Premium may be taken into account as a reduction in the amount of tax-exempt income for purposes of determining other tax consequences of owning the Premium Bonds. A purchaser of a Premium Bond at its issue price in the initial public offering who holds that Premium Bond to maturity will realize no gain or loss upon the retirement of such Premium Bond. PROSPECTIVE PURCHASERS OF THE PREMIUM BONDS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX CONSEQUENCES OF THE PURCHASE, SALE, TRANSFER, REDEMPTION, PAYMENT, OR OTHER DISPOSITION OF THE PREMIUM BONDS, INCLUDING, WITHOUT LIMITATION, MODIFICATIONS TO THE METHOD FOR AMORTIZING PREMIUM FOR CERTAIN SUBSEQUENT PURCHASERS, AND INCLUDING THE EFFECT OF ANY APPLICABLE STATE OR LOCAL INCOME TAX LAWS.

BOOK-ENTRY ONLY SYSTEM

The information in this section concerning DTC and DTC's book-entry only system has been obtained from DTC and the City takes no responsibility for the completeness or accuracy thereof. The City cannot and does not give any assurances that DTC, Direct Participants or Indirect Participants will distribute to the Beneficial Owners (each as hereinafter defined) (a) payments of interest, principal, or premium, if any, with respect to the Series 2020 Bonds, (b) certificates representing ownership interest in or other confirmation of ownership interest in the Series 2020 Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its partnership nominee, as the registered owner of the Series 2020 Bonds, or that they will so do on a timely basis or that DTC, Direct Participants or Indirect Participants will act in the manner described in this Official Statement. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC Participants are on file with DTC.

The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Series 2020 Bonds. The Series 2020 Bonds will be issued as fully-registered bonds registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered bond certificate will be issued for each maturity of the Series 2020 Bonds and will be deposited with DTC.

DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly

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or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.

Purchases of Series 2020 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2020 Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2020 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Series 2020 Bonds, except in the event that use of the book-entry system for the Series 2020 Bonds is discontinued.

To facilitate subsequent transfers, all Series 2020 Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Series 2020 Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2020 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2020 Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Series 2020 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 2020 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Series 2020 Bonds. For example, Beneficial Owners of Series 2020 Bonds may wish to ascertain that the nominee holding the Series 2020 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Trustee and request that copies of the notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the Series 2020 Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Series 2020 Bonds unless authorized by a Direct Participant in accordance with DTC's MMI procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Series 2020 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distribution and dividend payments on the Series 2020 Bonds will be made to Cede & Co. or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the City or the Trustee, on payable date in accordance with their respective holdings

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shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name", and will be the responsibility of such Participant and not of DTC, the Trustee, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

DTC may discontinue providing its services as a depository with respect to the Series 2020 Bonds at any time by giving reasonable notice to the City or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed (or otherwise produced) and delivered.

The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed (or otherwise produced) and delivered to DTC. (See also "BOOK-ENTRY ONLY SYSTEM – Revision of Book-Entry Only System – Replacement Bonds")

The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.

Revision of Book-Entry System - Replacement Bonds

The Bond Ordinance provides for issuance of fully registered bonds (the "Replacement Bonds") directly to owners other than DTC or its nominee only if DTC determines not to continue to act as security depository of the Series 2020 Bonds. In such event, the City may in its discretion establish a securities depository/book entry relationship with another qualified securities depository. If the City does not or is unable to do so, and after appropriate notice to DTC, the Trustee will authenticate and deliver fully registered Replacement Bonds, in the denominations of $5,000 or any multiple thereof, to or at the direction of and, if the event is not the result of City action or inaction, at the expense (including printing costs) of, any persons requesting such issuance. Replacement Bonds may be transferred, registered and assigned only in the registration books of the Trustee.

TRANSCRIPT AND CLOSING DOCUMENTS A complete transcript of proceedings for the Series 2020 Bonds, including an appropriate no-litigation certificate (see "LITIGATION" herein), will be delivered by the City when the Series 2020 Bonds are delivered by the City to the Underwriter. The City will at that time also provide to the Underwriter a certificate of the Director of Finance, in the form attached hereto as APPENDIX E, addressed to the Underwriter relating to the accuracy and completeness of this Official Statement.

CORONAVIRUS (COVID-19)

As widely reported, the outbreak of COVID-19, a new strain of coronavirus that can result in severe respiratory disease, and has reportedly spread to more than 170 countries and regions, including the United States and the State of Ohio. COVID-19 has been declared a pandemic by the World Health Organization. The spread of the strain of coronavirus commonly known as COVID-19 is altering the behavior of businesses and people in a manner that is having negative effects on global, state and local economies.

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In response, the Governor of the State (the "Governor") and the Director of the Ohio Department of Health have taken certain actions to limit the spread of the virus and its impact on local communities and health care services, including the declaration of a state of emergency in the State on March 9, 2020 and the issuance of a shelter-in-place order and related closure of all non-essential businesses from March 23, 2020, through at least May 1, 2020.

The full effect of the pandemic on global financial markets as well as national, state, and local economies is unknown. There can be no assurances as to the materiality, severity and duration of negative economic conditions caused by the pandemic.

The generation of Net Revenues is dependent upon additional factors outside the City's control, such as the economy, natural disasters, pandemics and changes in law. The current national and regional economic conditions may increase the rate of nonpayment of fees and charges by the City's customers. In response to the Governor's shelter-in-place order, many businesses have temporarily closed. These actions have resulted in significant increases in unemployment rates. Increased rates of unemployment could result in some customers' inability to pay utility bills on time. In addition, the recent Am. Sub. House Bill 197 signed into law by the Governor on March 27, 2020, gives the Director of Environmental Protection the ability to issue orders to public water systems during the COVID-19 outbreak regarding access to water service and fees or charges that are permitted to be charged to customers. Specifically, the director may order a public water systems to (i) restore water service to any customer whose service was disconnected for nonpayment of fees or charges, (ii) waive all fees for connection or reconnection to the public water system, or (iii) prohibit disconnecting customers for nonpayment of fees or charges. Over an extended length of time, significant instances of late payment or nonpayment could result in Net Revenues that are insufficient to pay debt service on the Bonds. However, the City believes it has sufficient cash reserves available to meet its operating expenses and all debt service payments, notwithstanding the possibility of late payments or non-payments due to the COVID-19 pandemic. See the "THE UTILITY – Historical and Projected Revenues and Expenditures of the Utility" and APPENDIX C.

While the potential impact on the City cannot be predicted at this time, the continued spread of the outbreak could have a material adverse effect on the City, its financial operations, and the Utility. There can be no assurance concerning the full effect that the spread of COVID-19 will have on the City's finances or operations.

CONTINUING DISCLOSURE The City has agreed for the benefit of the holders and beneficial owners of the Series 2020 Bonds to provide annual financial and operating information in its Annual Report, not later than September 30 of each year, and to provide notices of certain significant events, as listed in the Disclosure Certificate defined below. Concurrently with the delivery of the Series 2020 Bonds, the City will deliver a certificate of the Director of Finance, in the form attached hereto as APPENDIX F (the "Disclosure Certificate"), describing the nature of the information to be provided, the persons and entities to whom such information will be provided and the times at which such information will be provided. The City's failure to comply with any undertaking contained in such certificate will not constitute an event of default under the Series 2020 Bonds.

The Disclosure Certificate is being signed by the City to assist the Underwriter in complying with the Rule. Specifically, the City agrees to provide the Annual Report to the Municipal Securities Rulemaking Board (the "MSRB") in the manner and format prescribed by the MSRB.

The City has had 12 continuing disclosure undertakings (collectively, the "Undertakings") that were in effect for all or part of the previous five years. During the previous five years, the City filed its Annual

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Reports with the MSRB on a timely basis as required pursuant to the Undertakings. With respect to the City's audited financial statements that were released by the State Auditor within the past five years, the City filed such audited financial statements with the MSRB on the same day of their release by the State Auditor. The City has retained Bond Counsel to assist it with complying with the Undertakings and the Disclosure Certificate.


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CONCLUDING STATEMENT To the extent that any statements made in this Official Statement involve matters of opinion or estimates, whether or not expressly stated to be such, they are made as such and not as representations of fact or certainty, and no representation is made that any of such statements will be realized. Information herein has been derived by the City from official and other sources and is believed by the City to be reliable, but information other than that obtained from official records of the City has not been independently confirmed or verified by the City and its accuracy is not guaranteed. Neither this Official Statement nor any statement which may have been made orally or in writing is to be construed as or as part of a contract with the original purchasers or holders of the Series 2020 Bonds. This Official Statement has been duly prepared and delivered by the City, and executed for and on behalf of the City by its City Manager and Director of Finance.

CITY OF MARYSVILLE, OHIO By: /s/ Terry Emery City Manager By: /s/ Brad Lutz Director of Finance

THIS PAGE INTENTIONALLY LEFT BLANK

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APPENDIX A

THE CITY OF MARYSVILLE, OHIO

The following is a brief description of the City of Marysville, Ohio (the "City" or "Issuer") and the geographic area in which the City is located, together with certain information concerning its economy and governmental organization, its indebtedness, current major revenue sources and general and specific funds. General Information

The City is an independent political subdivision of the State of Ohio and operates subject to the provisions of its Charter, the Ohio Constitution, and various sections of the Revised Code. The City is the county seat of Union County (the "County"), and it offers the advantages of a metropolitan area combined with the charm of a rural, smaller community. Settled along Mill Creek early in the 1820's, the City encompasses approximately 16 square miles of territory and serves as the hub for the County. The City is located approximately 25 miles northwest of Columbus, the State capital, on U.S. Route 33, a major highway. Other principal highways in the City are U.S. Route 36 and State Routes 4, 31, 38, 245 and 736. The City's central location is among its greatest assets because it makes travel quick and convenient for residents. As the largest city in the County, the City is the home of both large and small industries, and its diversified business base helps provide a desirable quality of life. Few communities of its size in the country have enjoyed the international spotlight that has focused on the City, largely as a result of the Honda of America Manufacturing, Inc. automobile assembly facilities. Other major companies located in the City include the Scotts Miracle-Gro Company (lawn care products), Veyance Technologies, Inc. (formerly a division of The Goodyear Tire & Rubber Company), Midwest Express, Inc. (trucking), Nestlé USA (food research and development), and Parker Hannifin (manufacturer). The Union County Airport, which is located in the City, provides complete air service, including charter and freight service. The Union County Airport's 4,218 ft. runway can accommodate most private and executive aircraft. Commercial air service is also available at John Glenn Columbus International Airport in the City of Columbus. The Marysville Exempted Village School District serves City residents with its five elementary schools (K-4), one intermediate school (5-6), one middle school (7-8), one high school (9-12), and one Early College/STEM high school (9-12). A number of public and private two-year and four-year colleges and universities are also located within commuting distance, including The Ohio State University, Capital University, Otterbein College, Ohio Dominican College, Franklin University, Columbus State Community College, and DeVry Institute of Technology. The City has an extensive park system. The City owns and operates 16 parks encompassing 300 acres, one of which, American Legion Park, contains the municipal swimming pool. In addition, several public golf courses are currently operating in the immediate vicinity. City residents are served by two local healthcare facilities: Memorial Hospital of Union County, a modern 110 bed facility located just south of the downtown area of the City, and the Charles B. Mills

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Mental Health Center. A large number of other hospital and healthcare facilities are located within an hour's commute, including The Ohio State University Hospitals.

Map of Geographic Area

MARYSVILLE

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Structure of Government

The City operates under its Charter, but is also subject to the general statutes of the State that are applicable to all municipalities in the State. As a home-rule municipality, the City may exercise all powers of local self-government under Article XVIII, Section 3 of the Ohio Constitution.

The City operates under a "Council/Manager" form of government. The Council is composed of seven members and selects a President (who also serves as Mayor of the City) and Vice President from among its ranks to serve one-year terms. Under this form of government, the Council also appoints a city manager (the "City Manager") and other executive officials. The City Manager serves as the City's chief executive officer and supervises executive departments and divisions of the City. Principal Officials

The current elected officials of the City and some of its appointed officials are:

Principal Officials City of Marysville, Ohio

Name Office Date Term Expires Beginning of Tenure

Henk Berbee Mayor/Council President December 31, 2021 January 2010Mark Reams Council Vice President December 31, 2021 January 1998Donald Boerger Council Member December 31, 2023 January 2020Aaron Carpenter Council Member December 31, 2023 January 2020Alan Seymour Council Member December 31, 2023 August 2015Deborah Groat Council Member December 31, 2023 January 2008J.R. Rausch Council Member December 31, 2021 January 2012Terry Emery City Manager Appointed May 2011 Brad Lutz Director of Finance Appointed February 2020Tim Aslaner Law Director December 31, 2021 January 2000Rebecca Dible Clerk of Council Appointed July 2018 Source: City of Marysville

City Employees

The City has 206 full-time employees and 95 part-time employees. This includes 42 in the firefighter service and 40 sworn police officers. Thirty-seven (37) of the sworn officers are unionized and represented by the Fraternal Order of Police (FOP). Thirty-eight (38) of the firefighters are unionized and represented by the International Association of Fire Fighters (IAFF). All other employees are not unionized.

The City completed a collective bargaining agreement (CBA) with the IAFF for the dates July 1,

2019 through June 30, 2022, with the following cost of living increases for each year: 2020 (2.75%), 2021 (2.75%) and 2022 (2.25%). The City more recently completed the CBA with the FOP for dates January 1, 2020 through December 31, 2022, with the same cost of living increases for each year.

City officials note that the labor/management relationships are outstanding with both unions.

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Pension Obligations

All full-time employees of the City are covered either by the Ohio Public Employees Retirement System or the Ohio Police and Fire Pension Fund. The current employee contribution to the statewide systems is 10.0% of total compensation to the Ohio Public Employees Retirement System and 10.0% to the Ohio Police and Fire Pension Fund. The City's share, as employer, is currently 14.0% to Public Employees Retirement System; 19.5% for Police and 24.0% for Fire to the Ohio Police and Fire Pension Fund. These pension funds are regulated by the laws of the State, and changes in benefits will change the employer's contribution rate. Under the Consolidated Omnibus Reconciliation Act of 1985 (Public Law 99-272), public employers, including the City, are subject to mandatory Medicare (hospital insurance tax of Federal Insurance Contributions Act tax) contributions of 1.45% of each covered employee's wage base. Covered employees include all employees (with limited exceptions) hired after March 31, 1986. City Services

The City currently provides water, sewer, police and fire protection services. Residents of the City receive utility services from Dayton Power & Light, Union Rural Electric, Columbia Gas of Ohio, CenturyLink, and Spectrum.


THE UTILITY

Water System Facilities

The Utility provides potable water supply to residential, commercial, and industrial customers within the City corporation limits and to several areas outside the City. As reflected in the map below, the Utility serves a total area of 85.90 square miles.

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Service Area The Utility, which consists of three basic components – supply, treatment, and distribution –

provides potable water supply to residential, commercial, and industrial customers within the City's corporate limits and to several areas outside the City, including portions of the County.

On January 31, 2006, approximately 475 customers were added to the Utility from the

unincorporated areas of the County as a result of the City's acquisition of the County's water system utility. The acquisition superseded the City's prior agreement with the County to provide water to these customers and expanded the City's service area from 16.2 square miles to 85.9 square miles.

The City encompasses approximately 9.815 acres, or 15.34 square miles. It has been estimated that

approximately 4,392 of these acres (or 44.8% of these acres) are developed. Residential land use accounts for approximately 62% of these developed acres, commercial land use accounts for 20% of these developed acres and industrial land use accounts for the remaining 18% of these developed acres.

The surrounding areas of the County outside the City's corporate limits are largely undeveloped.

There are, however, a few pockets of developed areas to the east and southeast of the City. These include several residential, commercial, and industrial developments located to the southeast along the Industrial Parkway/U.S. Route 33 corridor, extending southward to State Route 161.

The City is currently in compliance with all orders from the Environmental Protection Agency with

respect to the Utility. Water Supply The City obtains its water supply from several groundwater wells and surface water that is pumped from Mill Creek through the Creek View Pump Station to the reservoir located on Raymond Road. The surface water comes from Mill Creek, a stream that flows through Logan, Union, and Delaware Counties and eventually discharges into the Scioto River. Water Treatment

The City's Water Treatment Plant (the "Existing Plant") is located at the intersection of Main Street and Mill Creek in the City. The Existing Plant was constructed in 1928, and expanded in 1956 and 1980 by the Ohio Water Service Company. The City purchased the Utility in 1991 from the Ohio Water Service Company for $11,000,000, through the issuance of mortgage revenue bonds. In 2007, the City issued its Series 2016 Bonds for the purpose of making improvements to the Utility. Since 1991, the City has invested nearly $35,000,000 of improvements in the Utility.

The Existing Plant is a conventional lime/soda softening facility which treats blended raw surface

and ground water by clarification, softening, and recarbonation. The water is then filtered and disinfected. The capacity of the Existing Plant is 3.80 mgd. The Existing Plant is being replaced with a new water treatment plant as part of the Project. (See "Capital Improvements Plan" below.) Water Distribution

The Utility's distribution system consists of approximately 198 miles of distribution pipelines. Within the distribution system, there are water storage facilities at four locations for a total capacity of 3.5 million gallons. A fifth storage tank is planned on the eastern side of the City.

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Organization and Management

The Existing Plant's operating structure includes 16 full-time employees. The Existing Plant's operations are managed by the City's Division of Water (within the Public Service Department), and supervised by one Superintendent. The Existing Plant staff includes a Chief Plant Operator who assists the Superintendent with management of the Existing Plant. The Superintendent has a Class IV Water Supply Certification and the Chief Plant Operator has a Class III Operators Certificate.

In addition to the Plant management referenced above, there are four Plant operators and one

mechanic/relief operator at the Existing Plant. The Existing Plant's Distribution Crew has nine additional positions including a foreman, two servicemen, and six distribution maintenance positions.

Historical and Future Growth of Use of the Utility

Over the past 50 years, the City has exhibited significant population growth, which has consequently corresponded to an increase in the number of customers and system demands on the Utility. The population at the 2010 census was 22,094 which is an approximate 39% increase from 2000. The City's estimated population, according to the U.S. Census Bureau, was 23,509 in 2018. It is expected that the City's population will continue to grow at a steady rate. The tables below summarize historical and projected Utility demand.

Historical Demand of the Utility City of Marysville, Ohio

Year

Average Day (MGD)

Maximum Day (MGD)

2014 2.1 3.32015 2.3 3.42016 2.3 3.72017 2.4 3.72018 2.3 3.52019 2.6 4.0

Source: City of Marysville

Projected Future Demand of the Utility City of Marysville, Ohio

Year

Average Day (MGD)

Maximum Day (MGD)

2020 2.5 3.92025 2.7 4.42030 2.9 5.02035 3.2 5.72040 3.5 6.52045 3.8 7.42050 4.1 8.42055 4.4 9.5


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The following table summarizes the historical annual daily flow for the Utility since 2014.

Capacity and Average Daily Flow of the Utility City of Marysville, Ohio

Fiscal Year

Existing Capacity (MGD)

Daily Flow

(MGD)

Percentage Utilization of

Capacity2014 3.8 2.1 55.0%2015 3.8 2.3 61.0 2016 3.8 2.3 61.02017 3.8 2.4 62.02018 3.8 2.7 72.02019* 3.8 2.7 72.02020* 3.8 2.7 72.0

Source: City of Marysville * Estimated

Customer Base

As of December 31, 2019, the Utility served a customer base of 8,205 residential customers and 662 commercial customers. The table below summarizes the statistical information of the 10 largest customers for calendar year 2019.

Top Ten Utility Customers City of Marysville, Ohio

Customer

Volume (Cubic Feet)

Percentage of Total Volume

Billed

Amount

Percentage of Total Billed

AmountState of Ohio 8,855,000 4.54% $215,074 1.59%

Nestlé USA 2,848,489 1.46 75,569 0.56

Hilcrest LLC 966,411 0.50 69,375 0.51

HAP V 959,328 0.49 62,947 0.47

EPCON Jerome 628,054 0.32 51,200 0.38

Marysville Estates 648,032 0.33 51,111 0.38

Veyance Technologies, Inc. 1,968,600 1.01 50,792 0.38

Scotts Miracle-Gro Company 1,151,064 0.59 54,932 0.41

Schottenstein Real Estate 459,667 0.24 37,152 0.28

Prestige Gardens 749,232 0.38 21,985 0.16 Source: City of Marysville

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The table below summarizes the user types of the Utility from 2018 through 2020.

Classification of Users of the Utility City of Marysville, Ohio

Description

2018 2019 2020

# of Customers % of Total # of Customers % of Total # of Customers % of Total

Residential - Single Unit 6,470 73.83% 6,631 72.93% 7,214 73.02%

Residential - Multi Unit 815 9.30 820 9.02 898 9.09

Residential - "Snow Birds" 62 0.71 63 0.69 63 0.64

Commercial - Single Unit 623 7.11 593 6.52 578 5.85

Commercial - Multi Unit 40 0.46 42 0.46 66 0.67

Industrial 28 0.32 27 0.30 31 0.31

Private Fire 100 1.14 1 0.01 1 0.01

Sewer ONLY 0 0.00 34 0.37 39 0.39

Fire Lines 0 0.00 119 1.31 118 1.19

Public Authority 43 0.49 43 0.47 43 0.44

City Accounts 29 0.33 28 0.31 28 0.28

Residential/Secondary Meter 553 6.31 691 7.60 801 8.11

Total 8,763 100.00% 9,092 100.00% 9,880 100.00%

% Yearly Increase 3.6% 3.8% 8.7%

% Overall Increase 7.8% 11.8% 20.7%



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Capital Improvements Plan

The City has implemented a capital improvement program ("CIP") with respect to the Utility, which includes planned designs, construction projects, maintenance and repair of the Utility, the associated costs, and schedules for implementation of these improvements. The total cost of the improvements in the CIP is estimated at approximately $70,000,000 – $75,000,000 and will be funded through proceeds from the Series 2020 Bonds, private contributions and reserves, and cash on-hand. The following table provides an overview of the CIP.

Capital Improvements Plan

City of Marysville, Ohio

Description 2020 2021 2022 2023 2024 2025 Water Main Over Sizing $ 150,000 $ 150,000 $ 150,000 $ 150,000 $150,000 $150,000Distribution Materials (e.g., water main, valves, hydrants) 200,000 200,000 200,000 200,000 200,000 200,000Main Replacement: E. 6th Street (Plum Street to Cherry Street) 800,000 -- -- -- -- --New Water Treatment Plant 60,000,000 -- -- -- -- --New Water Treatment Plant – Distribution -- 5,000,000 -- -- -- --Main Replacement: W. 5th Street (Court Street to Maple Street) -- 400,000 -- -- -- --Southern Water Tower – Design and Property Purchase -- 700,000 -- -- -- --Southern Water Tower – Construction -- -- 2,500,000 2,500,000 -- --VMware Cloud on AWS 117,329 -- -- -- -- --AWS Storage 19,892 -- -- -- -- --Upgrade Office Software 26,820 -- -- -- -- -- -- -- -- -- -- --In House Projects -- -- -- -- -- --Paving, N. Plum Street 60,000 -- -- -- -- --Waterline, Fairwood Drive 100,000 -- -- -- -- --Paving, Fairwood Drive -- 75,000 -- -- -- --Waterline, 2nd Street -- 100,000 75,000 -- -- --Paving, 2nd Street -- -- 75,000 -- -- Total $61,474,041 $6,625,000 $2,925,000 $2,850,000 $350,000 $350,000


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New Water Treatment Plant The Project consists of the acquisition, construction, expansion, rehabilitation, and improvement of a new City-owned water treatment plant (the "New Plant"). The New Plant will be a conventional lime/soda softening facility which treats blended raw surface and ground water. The New Plant will utilize solid contact clarification, biologically active sand filters, and secondary treatment with ozonation and will provide 7.5 mgd of capacity with provisions to eventually expand capacity to 15 mgd. The construction phase of the New Plant is anticipated to commence in 2020 and to be paid with from proceeds of the Series 2020 Bonds as well as accumulated cash balances within the three water operating and capital funds. Design and engineering of the New Plant has been completed.

The New Plant will replace the City's Existing Plant. After construction on the New Plant is complete, the Existing Plant will be decommissioned, and any usable equipment will be removed from the site. The lime lagoon will be dredged until empty, and the empty lagoon will likely be used as a clean fill dirt site. There is also an opportunity for the City to scrap steel from the site of the Existing Plant, or it may be left for a potential buyer. City management's goal, however, is to find a commercial buyer for the site that will take advantage of the historical provenance of the Existing Plant building, preserving the structure while providing jobs for the community.

Staffing at the New Plant is also expected to resemble staffing at the Existing Plant. Existing Plant

staffing includes four Operators, one Mechanic/Relief Operator and a Chief Operator. The New Plant is expected to staff four Operators, one Mechanic, one Relief Operator, one Assistant Superintendent, and one Superintendent. The classification of the New Plant has been assigned by the Ohio Environmental Protection Agency as a class IV, thus requiring the Superintendent to occupy the plant for 40 hours per week. Utility Rates and Charges

The City has exclusive jurisdiction over rates, operations, and services of the Utility within the City's service boundaries. It establishes rates and charges to fund working capital requirements, operation and maintenance expenditures, debt service, and to generate sufficient revenues to permit the issuance of bonds on terms favorable to the City. Rates are approved by City Council and no other federal, State, County, or regulatory agency has jurisdiction over the rates charged. No future rate increases are anticipated in the upcoming years. The City's water rates/charges are summarized below.

Rates for the Utility

City of Marysville, Ohio Effective January 1 of each year 2017 2018 2019 2020 First 200 cubic feet per month $11.50 $11.50 $11.50 $11.50 Next 1,300 cubic feet per month 6.75 6.75 6.75 6.75 Next 48,500 cubic feet per month 3.60 3.60 3.60 3.60 Over 50,000 cubic feet per month 2.90 2.90 2.90 2.90 Minimum monthly charge 23.00 23.00 23.00 23.00

Note: Rates residential, commercial, and industrial rates per 100 cubic feet or fraction thereof. Source: City of Marysville

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Capacity fees for new water service are based upon the size of the tap, and are assessed to each new connection to the Utility at the time a building permit is issued. The City charges the following capacity fees for new water service:

Capacity Fees for the Utility City of Marysville, Ohio

Meter Size (inches)

Meter Equivalents

Connection Charge

5/8 1.0 $ 4,9501 2.2 10,8901 ½ 6.4 31,6802 10.0 49,5003 20.0 99,0004 40.0 198,0006 64.0 316,800


The capacity fees shown in the table above became effective June 25, 2018.


Historical and Projected Revenues and Expenditures of the Utility

The table below sets forth the historical and projected revenues for the Utility from 2017 through 2024:

Historical and Projected Revenues and Expenditures of the Utility City of Marysville, Ohio

(Cash Basis) Actual Actual Actual Forecasted Forecasted Forecasted Forecasted Forecasted Revenues 2017 2018 2019 2020 2021 2022 2023 2024 Tenant Utility Deposit $ 2,941 $ 3,548 $ (750) $ 10,300 $ 10,609 $ 10,927 $ 11,255 $ 11,593

Interest Income 155,728 312,336 545,237 176,038 181,319 186,759 192,362 198,133

Assessments 4,828 8,070 2,970 7,828 8,063 8,305 8,554 8,810

Permits & Inspection Fees 60,152 71,057 77,251 132,985 136,975 141,084 145,317 149,676

County Inspection Fees 65,095 66,059 188,241.21 87,738 90,371 93,082 95,874 98,750

Service Charges 7,223,629 7,283,802 7,727,744 7,682,199 7,912,665 8,150,045 8,394,547 8,646,383

Miscellaneous 61,686 64,393 73,894 36,050 37,132 38,245 39,393 40,575

County Tap Fees 1,321,653 1,979,504 1,788,556 772,500 795,675 819,545 844,132 869,456

Sale of Assets -- -- -- -- -- -- -- --

Total Revenues $8,895,712 $9,788,769 $10,403,144 $8,905,638 $9,172,809 $9,447,992 $9,731,434 $10,023,376 Expenditures Salaries, Wages & Benefits $1,589,753 $1,699,956 $1,825,356 $1,975,003 $2,034,253 $2,095,281 $2,158,140 $2,222,884

Materials & Supplies 657,833 841,042 617,113 888,750 915,413 942,875 971,162 1,000,296

Contract Services 797,823 727,651 1,271,025 1,133,658 1,167,668 1,202,698 1,238,779 1,275,943

Other Expenses 100,038 84,624 84,925 182,825 188,310 193,959 199,778 205,771 Total Expenditures $3,145,447 $3,353,273 $3,798,418 $4,180,236 $4,305,644 $4,434,813 $4,567,859 $4,704,894

Net Revenues Before Debt Services and Transfers $5,750,265 $6,435,496 $6,604,726 $4,725,402 $4,867,165 $5,013,179 $5,163,575 $5,318,482

Debt Service Fund -- -- -- -- -- -- -- --

2007 Revenue Bond 208,000 -- -- -- -- -- -- --

2016 Revenue Bond 1,588,800 1,571,300 1,545,050 1,513,800 1,479,000 1,444,200 1,409,400 1,392,000

2020 Revenue Bond - - - 1,006,614 1,679,200 1,710,600 1,745,400 1,763,400Total Debt Service $1,796,800 $1,571,300 $1,545,050 $2,520,414 $3,158,200 $3,154,800 $3,154,800 $3,155,400

Coverage Ratio 3.20 4.10 4.27 1.87 1.54 1.59 1.64 1.69

Transfers to Replacement & Improvement Fund 1,269,000 1,269,000 1,269,000 12,900,000 6,447,640 2,759,050 2,687,561 183,178

Excess (Deficiency) $ 2,698,912 $ 3,574,424 $ 3,774,946 $(10,472,479) $(4,538,638) $(704,634) $ (481,749) $2,178,841

January 1 Fund Balance 12,028,096 14,727,008 18,301,432 22,076,380 11,603,901 7,065,263 $6,360,629 5,878,880

December 31 Fund Balance $14,727,008 $18,301,432 $22,076,380 $11,603,901 $7,065,263 $6,360,629 $5,878,880 $8,057,721Fund Balance as % of Revenues 166% 187% 212% 130% 77% 67% 60% 80%


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ECONOMY AND EMPLOYMENT Economic Development

The City and the parts of the County near the City have experienced enormous economic growth and development in the past 30 years. This development has helped the assessed valuation of the City grow 500% since the early 1990's as the City has been transformed from a predominantly agricultural area to a young and robust municipality. Much of this economic development has been in the area of manufacturing and relates to the Honda of America ("Honda") automobile assembly facility. The Honda facility was built in the late 1970's outside the City, but within the County, and serves as a major employer for the City's residents. In fact, Honda represents the largest amount of international investment in Ohio when ranked by the number of employees. Another large manufacturer, the Scotts Miracle-Gro Company ("Scotts"), maintains its world and North American headquarters as well as its main manufacturing facility in the City. Scotts is a global leader in consumer lawn, garden and pest control products. With the Honda plant and Scotts serving as the backbone for the area's employment base, the manufacturing industry is the largest employment sector within the County. The Ohio Development Services Agency recently estimated that 7,744 of the County's 29,384 private-sector jobs (26 percent) were in manufacturing. The City's commercial and industrial base continues to expand, particularly along U.S. Route 33 which has recently been named the Ohio 33 Smart Mobility Corridor ("Smart Corridor"). The Smart Corridor is a 35-mile highway stretch connecting East Liberty, Ohio and the City with the Columbus region and is home to one of the largest concentrations of manufacturers, research and development firms, and logistics companies in Ohio, including Honda and Scotts. The State and U.S. Department of Transportation have recently made funding commitments totaling $20.9 million to make the Smart Corridor into a proving ground for autonomous and connected vehicles. Installation of the fiber optic cable and redundant fiber loop along the Smart Corridor was completed in 2019. The new 33 Innovation Park, located along the Smart Corridor and within the City, offers numerous attractive options for companies seeking to establish or relocate. Two planned buildings at the 200-acre commercial park will offer a combined 168,000 square feet of premier space for advanced manufacturing, research and development, smart mobility, data analytics, and logistics firms. 33 Innovation Park will also be home to the new 20,000 square foot Automotive and Mobility Innovation Center. Three of the newest commercial developments have transformed the eastern side of the City into a bustling hive of active businesses. Coleman's Crossing, City Gate, and Bethel Woods offer several hundred acres of highly developable property that has attracted many big box retailers, including a Home Depot, Super Wal-Mart, Lowe's, Meijer and a Kroger Marketplace. Restaurants, banks, drug stores and a variety of service-based businesses make these developments, which are conveniently located along U.S. Route 33, a shopping destination for the whole County. Two large mixed-use projects are also underway in the City that will provide more single family and multi-family housing options to the growing area, in addition to significant commercial opportunities. In 2018, development began on Woodside, a 107-acre mixed-use project located less than one mile east of the City's downtown along Industrial Parkway. Woodside is the largest mixed-use development in City history and will include more than 850 residences, offices, shops and restaurants when completed. Development also recently started on Cook's Pointe, a 170-acre Planned Unit Development located two miles north of the downtown along U.S. Route 33. Cook's Pointe is projected to have approximately one million square feet of office and retail business space and 360 apartments and condominiums. Construction of Cook's Pointe Boulevard, a new half-mile, five lane roadway, was completed in late 2018.

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The sharp increase in population over the past two decades have been the catalyst for several other large residential developments, including Mill Valley and Scott Farms to the north of U.S. Route 33 as well as the Green Pastures subdivision in the western portion of the City. Construction also recently began recently on four new hotels in various locations within the City. Combined, these four hotels will add nearly 350 new hotel rooms to the community. Commercial and office land uses are also concentrated in the central business district, which has benefited from a successful downtown revitalization program. Nearly $1,300,000 of public and private investments was used to beautify businesses and improve infrastructure in the downtown area. Many strip retail and auto-oriented commercial land uses are thriving along West Fifth Street to the west of downtown, Delaware Avenue west of U.S. Route 33, and Main Street between Mill Creek and U.S. Route 33. In order to further the City's commercial and industrial development, the City has entered into several tax abatement agreements with businesses in the area. The City has entered into agreements with Scotts, the largest employer and second largest taxpayer in the City, as well as with ABI and Parker Hannifin. All of these agreements create jobs and promote economic development for the City. In addition to new commercial businesses, the City is actively targeting new industries, particularly around the Industrial Parkway and Smart Corridor. With room for additional development, the City has poised itself for significant commercial growth in the future. Manufacturing, alternative energy, research and development, and logistics and warehousing are just a few of the markets that would be a perfect fit for this growing community. The City's administration and leaders are committed to embracing the opportunities for growth, but are careful to maintain control so that growth is orderly and productive. According to the U.S. Bureau of the Census, the City's population in 2018 was 23,509. Building Permit Values

The City's growth in the past decade is reflected, in part, in the degree of building activity in the City. The following table relating to the issuance of building permits (residential, commercial, and industrial) by the City since 2014 is set forth for informational purposes only.

Annual Permits and Total Construction Value City of Marysville, Ohio

Year

Number of Building Permits

Total Construction Cost

2014 377 $ 64,615,825 2015 414 52,919,052 2016 424 106,876,287 2017 471 71,775,097 2018 637 104,119,865 2019 489 72,923,690


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Labor Force Statistics

Unemployment and labor force statistics specific to the City are not available. The County, MSA, State and United States information presented in this section is included for informational purposes only. It should not be implied from the inclusion of such data in this Official Statement that the City is representative of the County, MSA, State, or United States, or vice versa. The following statistics are not seasonally adjusted.

Area Unemployment Rates (annual percentages)

Labor Force (in thousands)

Year Union County

Columbus MSA

State of Ohio

United States

Year Union County

2014 4.5% 4.8% 5.7% 6.2% 2014 26.92015 3.8 3.6 4.2 4.8 2015 27.02016 3.8 4.2 5.0 4.7 2016 27.82017 3.7 4.1 5.0 4.1 2017 28.42018 3.5 3.8 4.6 3.7 2018 28.32019* 2.9 3.2 3.8 3.4 2019* 29.0

Source: Ohio Department of Job and Family Services, Bureau of Labor Market Information * As of December 2019


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Largest Employers

The following table lists the 50 largest employers in the MSA as of October 2019. It should not be implied from the inclusion of such data in this Official Statement that the City is representative of the MSA, or vice versa.

Largest Employers Columbus MSA

Rank Firm Number of Employees Industry

1 The Ohio State University 33,335 Education2 OhioHealth 23,836 Healthcare3 State of Ohio 21,342 State government 4 JPMorgan Chase & Co. 18,400 Banking & financial services 5 Nationwide Mutual Insurance Company 12,500 Insurance & financial services6 Nationwide Children's Hospital 10,875 Pediatric healthcare 7 Kroger Co. 10,563 Retail grocery 8 City of Columbus 8,963 Government 9 Mount Carmel Health System 8,776 Healthcare

10 L Brands Inc. 8,616 Specialty retailer 11 Honda North America, Inc. 7,700 Auto manufacturing 12 Franklin County 6,150 Government 13 Cardinal Health Inc. 5,075 Healthcare products & services14 Huntington Bancshares Inc. 4,921 Banking & financial services 15 Amazon.com, Inc. 4,828 Online retailer/cloud computing16 Alliance Data Systems Corp. 4,396 Marketing/credit card transaction services17 American Electric Power Company Inc. 4,294 Electric power utility 18 Giant Eagle Inc. 3,386 Retail grocery 19 Abercrombie & Fitch Company 2,700 Retail clothing 20 South-Western City School District 2,688 Education21 Wendy's Co. 2,338 Restaurant22 Discover Financial Services LLC 2,283 Financial services 23 XPO Logistics, Inc. 2,246 Transportation and logistics services24 YMCA of Central Ohio 2,243 Youth development/social outreach 25 DHL Supply Chain 2,192 Contract logistics provider 26 Fairfield Medical Center 2,081 Healthcare27 Safelite Group Inc. 2,064 Automotive glass repair 28 Abbott Laboratories/Abbott Nutrition 2,055 Nutrition research and products29 Big Lots Inc. 2,008 Discount retail 30 Donatos Pizzeria LLC 1,982 Restaurant31 Licking Memorial Health Systems 1,975 Healthcare32 TS Tech Americas Inc. 1,821 Automotive seat manufacturing33 Charter Communications, Inc. 1,779 Telecommunications provider34 Westerville City School District 1,739 Education35 Worthington Industries Inc. 1,735 Steel manufacturing 36 Central Ohio Primary Care Physicians Inc. 1,730 Healthcare36 Teleperformance USA 1,730 Call center, customer service, tech support38 Aetna Inc. 1,719 Healthcare insurance 39 Stanley Electric U.S. Co. Inc. 1,680 Automotive equipment manufacturer40 United Parcel Service 1,669 Package delivery & logistics 41 Cameron Mitchell Restaurants LLC 1,658 Restaurants and catering 42 Battelle Memorial Institute 1,636 Technology & research development43 Ascena Retail Group, Inc. 1,635 Retail clothing 44 Roosters Inc. 1,578 Restaurant45 Gap Inc. 1,508 Retail clothing 46 PNC Financial Services Group Inc. 1,500 Banking & financial services 46 UnitedHealth Group 1,500 Healthcare insurance 48 Columbia Gas of Ohio Inc. 1,402 Natural gas utility 49 CAS, a division of the American Chemical Society 1,400 Scientific research information50 Pickerington Local School District 1,384 Education

Source: Columbus Business First. Data as of October 2019

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Largest Employers City of Marysville, Ohio

Source: City of Marysville Notes: (1) Honda of America, while not located within the territory of the City, employs approximately 7,700, including more residents of the

City than any other employer. (2) Information as of November 18, 2019.

CITY TAX BASE

THE FOLLOWING SUMMARY INFORMATION REGARDING THE CITY IS PRESENTED FOR GENERAL INFORMATION PURPOSES, AND IT IS NOT THE BASIS ON WHICH THE SERIES 2020 BONDS ARE BEING OFFERED TO INVESTORS. THE SERIES 2020 BONDS ARE SPECIAL LIMITED OBLIGATIONS OF THE CITY, SECURED BY THE INDENTURE HEREIN, AND WILL BE PAYABLE SOLELY FROM THE NET REVENUES AND AMOUNTS IN THE SPECIAL FUNDS DESCRIBED HEREIN. NEITHER THE GENERAL CREDIT OF THE CITY, NOR THAT OF THE STATE OF OHIO OR OF ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS AND THE OWNERS AND HOLDERS OF THE SERIES 2020 BONDS DO NOT HAVE THE RIGHT TO HAVE ANY EXCISES OR TAXES LEVIED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE CITY, FOR THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS.

Ad Valorem Taxes and Assessed Valuation

Overview

For property taxation purposes, assessment of real property is performed on a calendar year basis by the elected County Auditor subject to supervision by the Tax Commissioner, and assessment of public utility tangible personal property is performed by the Tax Commissioner. Property taxes are billed and collected by the County Treasurer.

Taxes collected from real property in one calendar year are levied in the preceding calendar year on assessed values as of January 1 of that preceding year. Public utility tangible personal property taxes collected in one calendar year are levied in the preceding calendar year on assessed values determined as of December 31 of that second year preceding the tax collection year. Beginning with the 2009 tax year, general business tangible personal property is no longer subject to tax.

Firm Number of Employees Type of Business

Scotts Miracle-Gro Company 1,403 Lawn Care ProductsMemorial Hospital of Union County 808 Healthcare Marysville Exempted Village School District 704 Education Ohio Reformatory for Women 698 Government Union County 571 Government Wal-Mart 471 Retail Veyance Technologies Inc. 387 Manufacturing City of Marysville 337 Government Nestlé R&D Center Inc. 333 Research & DevelopmentScioto Corporation 279 Custodial/Janitor Supplies

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Real Property

The "assessed valuation" of real property is fixed at 35% of true value and is determined pursuant to rules of the Tax Commissioner, except that real property devoted exclusively to agricultural use is assessed at not more than 35% of its current agricultural use value. Beginning in 2009, certain elderly or disabled resident homeowners receive a flat $25,000 property tax exemption on the market value of their homestead.

Ohio law requires the County Auditor, subject to supervision by the Tax Commissioner, to adjust the true value of taxable real property every six years to reflect current fair market values. This "sexennial reappraisal" is done by individual appraisal of properties. In the third year following a sexennial reappraisal, the County Auditor, again subject to supervision by the Tax Commissioner, performs a "triennial update" to adjust the value of taxable real property to reflect true values. The triennial update is done without individual appraisal of properties, but with reference to a sales-assessment ratio over the three-year period.

Personal Property

In 2005, the State accelerated its phase-out of the tangible personal property tax. Beginning with the 2009 tax year, general business tangible personal property is no longer subject to tax.

Public utility tangible personal property – including tangible personal property of electric utilities not used for transmission and distribution and all tangible personal property of gas utilities – was not included in the phase-out created by the State. All public utility tangible personal property is assessed at varying percentages of its true value depending on the type of property and the type of utility.

The State currently reimburses school districts for tax losses resulting from the phase-out of the tangible personal property tax. However, recent legislation will reduce and eliminate the amount of such payments. (See "CITY TAX BASE – Property Tax Rate Calculations.")

State Reimbursement of Property Tax Revenues

Rollback and Homestead Exemption Reimbursement

The State reimburses taxing districts, including municipalities, for decreased tax revenues due to (a) the 10% reduction or "rollback" in certain non-commercial property taxes, (b) the 2.5% reduction applicable to certain owner-occupied housing, and (c) the flat, $25,000 reduction in taxable value applicable to certain elderly or disabled homeowners. Such reimbursements are subject to repeal or revision by the State.

Public Utility Property and Tangible Personal Property Tax Loss Reimbursement In tax year 2001, changes took effect which reduced the assessment percentages applicable to electric generation and natural gas tangible personal property, thereby reducing the amount of tangible public utility property tax revenue collected by taxing districts. In order to replace the taxes no longer received due to the lower assessment percentages, State consumption taxes on electricity and natural gas were enacted in 1999 and 2000, respectively. Beginning in 2006, the State began to phase out the tax on tangible personal property used in business. The State also reimburses certain taxing districts for the loss of tax revenues due to the phase-out of the tax on general business tangible personal property, and on the tangible personal property belonging to telephone, telegraph, and interexchange companies. In order to replace a portion of the lost revenue, a

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commercial activity tax was enacted in 2005 and is imposed on gross receipts, including receipts from services, in the State.

The reimbursement of both types of tangible personal property tax revenues losses, although originally scheduled to end by calendar year 2018, had been frozen. Recent legislation generally combines the two types of tangible personal property tax revenue loss payments, reinstitutes the phase-out and reduces the payments depending on the type of levy.

For additional information prepared by the Ohio Department of Taxation illustrating the amount of reimbursements for future years, go to http://www.tax.ohio.gov/personal_property/phaseout.aspx.

Assessed Valuation

The following table classifies the City's taxable property according to use:

Assessed Valuation City of Marysville, Ohio (2020 Collection Year)

Property Classification

Amount Percent of

Total Assessed Valuation

Real Estate1 Residential/Agricultural $348,887,270 72.74%Commercial/Industrial/Mineral 117,204,380 24.44 Public Utility Real 0 0.00

Total Real Estate $466,091,650 97.17%

Personal Property2 Public Utility Personal $13,555,390 2.83%

Total Personal $13,555,390 2.83%

Total Assessed Valuation $479,647,040 100.00%

Source: Union County Auditor 1 Real property taxes collected in a calendar year are levied in the preceding calendar year on assessed values as of January 1 of that preceding year. Real property is assessed at 35% of market value and reappraised every six years, with triennial updates every three years. 2 Tangible personal property taxes collected in a calendar year are levied in the same calendar year, on assessed values during and at the close of the most recent fiscal year of the taxpayer (ending on or before March 30 of said calendar year) at tax rates determined in the preceding year.

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Historic Growth in the City's Assessed Valuation City of Marysville, Ohio

Tax Year Assessed Valuation Percent Increase Over Prior Year

2010 $384,302,330 0.60% 20111 386,109,640 0.47 2012 383,333,000 (0.72) 2013 366,023,040 (4.52) 20142 372,156,750 1.68 2015 374,110,230 0.52 2016 414,072,180 10.68 20171 418,841,690 1.15 2018 425,105,820 1.50 2019 479,647,040 12.83

Source: Union County Auditor 1 Year of triennial update 2 Year of sexennial appraisal

Largest Taxpayers in the City

The following tables list the largest real estate and public utility taxpayers in the City. Percentage of total assessed valuation is based on a total assessed valuation of $479,647,040 for collection year 2020.

Largest Taxpayers City of Marysville, Ohio (2020 Collection Year)

Real Estate Taxpayers

Name Type of Business Assessed Valuation

Percent of City's Total Assessed

Valuation Scotts Miracle-Gro Company Lawn Care Products $9,148,130 1.91%Nestlé USA Research 4,137,900 0.86Watkins Glen Holdings Ltd. Developer 2,966,480 0.62The Kroger Company Grocer 2,591,320 0.54SM-Links LLC Real Estate 2,400,620 0.50Marcus Pohlmann Properties LLC Real Estate 2,301,150 0.48Lakeside at Marysville LLC Real Estate 2,209,620 0.46Ohio Department of Development Government 2,441,150 0.51UMH OH Marysville Estates LLC Real Estate 2,015,920 0.42Nissan International Transport Developer 1,954,040 0.41Source: Union County Auditor

Public Utility Taxpayers

Name Type of Business Assessed Valuation

Percent of City's Total Assessed

Valuation Dayton Power & Light Company Electric Utility $9,103,800 1.90%Union Rural Electric Electric/Gas Utility 2,436,250 0.51Columbia Gas of Ohio Gas Utility 1,793,320 0.37Source: Union County Auditor

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Property Tax Rate Calculations

State law has a "reduction factor" mechanism that is intended to negate increases in taxes resulting from increases in the true value of real property due solely to inflation. Legislation implementing a 1980 constitutional amendment classifies real property as either (1) residential and agricultural or (2) all other real property, and provides for tax reduction factors to be separately computed for and applied to each class.

Statutory procedures limit the amount realized by each taxing subdivision from real property taxation, by the application of a tax reduction factor, to the amount realized from those taxes in the preceding year plus: (i) the proceeds of any new taxes (other than renewals) approved by the electors, calculated to produce an amount equal to the amount that would have been realized if those taxes had been levied in the preceding year, and (ii) amounts realized from new and existing taxes on the assessed valuation of real property added to the tax duplicate since the preceding year. Such limitations are expressly inapplicable to amounts realized from taxes levied at a rate required to produce a specified amount, such as for debt service charges, and from taxes levied inside the ten-mill limitation or any applicable municipal charter tax rate limitation.

A reduction factor is computed for each separate levy that is subject to the limitation. A resulting "effective tax rate" reflects the aggregate of those reductions and is the rate at which real property taxes are, in fact, collected. Real property tax amounts from property devoted to residential and agricultural purposes are, in certain cases, further reduced by an additional 10% (12.5% in the case of certain owner-occupied residential property) or a flat, $25,000 reduction in taxable value applicable to certain elderly or disabled resident homeowners, when billed to the taxpayer. These reductions are reimbursed to the taxing subdivisions by the State. A phase out of these reductions began in 2013. The 10% reduction for residential and agricultural properties and 2.5% additional reduction for owner-occupied residential property do not apply to new levies and replacement levies approved by voters after the August 6, 2013 election. Additionally, starting in the 2014 tax year, the $25,000 reduction in taxable value for certain elderly homeowners and homeowners with disabilities is being grandfathered out, with new reductions limited to property owners with total income less than or equal to $30,000. This figure is adjusted for inflation annually by the Tax Commissioner. (See "CITY TAX BASE – State Reimbursement of Property Tax Revenues" for a discussion of reimbursement by the State for these reductions.)

Property Tax Revenues

The following table shows historical property tax levies and collections for the City since tax year 2014.

Historical Property Tax Collections City of Marysville, Ohio

Tax Year Taxes Levied Taxes Collected* Collection Rate

Change in Collection Rate

from Previous Year

2014 $5,198,660 $4,996,243 96.11% (0.23)% 2015 5,724,779 5,343,634 93.34 (2.87) 2016 6,456,019 6,130,090 94.95 1.72 2017 7,470,923 7,747,812 103.71 9.22 2018 7,972,465 7,798,055 97.81 (5.68) 2019 9,256,353 -- -- --

Source: Union County Auditor * Includes rollbacks reimbursed by the State and delinquent taxes, but does not include payments in lieu of taxes associated with TIF districts.

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Budgeting, Tax Levy and Appropriations Procedure

The Revised Code contains detailed provisions regarding City budgeting, tax levy and appropriation procedures. These procedures involve review by County officials at several steps.

The law requires generally that a subdivision prepare, and then adopt after a public hearing, a tax budget approximately six months before the start of the next fiscal year. The tax budget then is presented for review by the county budget commission, which is comprised of the county auditor, treasurer and prosecuting attorney. However, a county budget commission may waive the requirement for a tax budget and require an alternative form of more limited information required by the commission to perform its duties.

City budgeting for a fiscal year (which is the calendar year) formally begins with the preparation of a tax budget by the Union County Budget Commission, which is comprised of the County Auditor, County Treasurer and County Prosecuting Attorney (the "Budget Commission"). Among other items, the tax budget must show the amounts required for debt service, the estimated receipts for payment from sources other than ad valorem property taxes and the net amount for which an ad valorem property tax levy must be made. The tax budget then is presented for review by the Budget Commission. The Budget Commission holds a public hearing, reviews the budget, and issues a Certificate of Estimated Resources by September 1, which certificate is the basis for City appropriations and expenditures for the coming fiscal year.

Upon approval of the tax budget and issuance of the Certificate of Estimated Resources, the Budget Commission certifies its actions to the Council together with the approved tax rates. Thereafter, the Council levies the approved taxes and certifies them to the proper County officials. The approved and certified tax rates are reflected in the tax bills sent to property owners during the collection year. Real property taxes are payable on a calendar year basis, generally in two installments with the first due usually in February and the second due in July or later.

Appropriation measures may be amended or supplemented during the fiscal year. Annual appropriations may not exceed the Budget Commission's official estimates of resources. The County Auditor must certify that the Council's appropriation measures, including any supplements or amendments, do not appropriate moneys in excess of the amount set forth in the latest of those official estimates. Investment of Funds

According to the Director of Finance, all moneys of the City, including specifically moneys in the general fund, the bond retirement fund, and all project funds containing proceeds of any debt issuances of the City, are presently or will be invested in accordance with the requirements of Ohio law, and in particular Chapter 135 of the Revised Code (the "Uniform Depository Act"). Under Section 135.14, Revised Code, the City may invest its funds provided that such investments must mature or be redeemable within five years from the date of purchase. The classifications of obligations which are eligible for such investment by the City range from investment in the State Treasury Asset Reserve of Ohio investment pool ("STAR Ohio") to investment in United States Treasury bills, certificates of deposit and investment grade bonds, notes, or other obligations issued by any federal government agency. Certain investment practices remain exclusive to those political subdivisions whose fiscal officers have completed additional training in accordance with the Uniform Depository Act.

Further, pursuant to Revised Code Section 135.14, all investments of the City, except for investments in securities in STAR Ohio and certain no-load money market mutual funds, must be made

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through members of the National Association of Securities Dealers, Inc., banks, savings banks, or savings and loan associations regulated by the State superintendent of financial institutions or through institutions regulated by the comptroller of the currency, Federal Deposit Insurance Corporation, or board of governors of the Federal Reserve System.

The City interprets the limits on federally guaranteed investments and all other legal investments very conservatively. No moneys of the City have ever been invested in interest-only obligations, reverse-repurchase obligations, inverse floater obligations, or other investment vehicles commonly referred to as derivative investments. No moneys of the City are invested in obligations which mature later than the time at which it is reasonably expected that the City will need access to such moneys in order to meet current financial commitments. The Director of Finance has attended special training in all of the investment areas to assure strict compliance with the conservative investment philosophy of the City. All investments are transacted with banks or other financial institutions operating in the State. Complete detail of the current investment practices of the City can be found in the most recent audited financial statements of the City (see APPENDIX C herein).

Income Tax Revenues

The Revised Code authorizes municipal corporations to levy a tax on income at a uniform rate. No municipal corporation is authorized to levy a municipal income tax in excess of one percent (1%) per annum without obtaining the approval of at least a majority of its electors voting on the question at an election held in accordance with applicable Ohio law.

The City's income tax is imposed on wages, salaries, commissions, and other compensation of individuals and on net profits of businesses and professions received within the City. Military pay or allowances, income of religious, charitable, or educational institutions (to the extent derived from tax-exempt property or activities), net profits of public utilities (except for long-distance telephone companies), and interest and dividends are exempt from municipal income tax. The City's income tax rate is 1.5%. The income tax rate increased from 1.0% to the current rate effective July 1, 2010. The City does not allow an income tax credit based on income taxes paid to another municipality by residents who work outside of the City. Revenues derived from the income tax since 2011 are as follows:

Historical Income Tax Revenues City of Marysville, Ohio

Year Income Tax Revenues Percent Change

2011 $13,085,760 -- 2012 13,049,809 (0.27)% 2013 14,094,212 8.00 2014 15,176,475 7.68 2015 15,951,599 5.11 2016 17,456,251 9.43 2017 18,801,562 7.71 2018 19,037,167 1.25 2019* 19,222,080 0.97

Source: City of Marysville * Cash basis (unaudited)

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CITY DEBT AND DEBT LIMITATIONS THE SERIES 2020 BONDS ARE SPECIAL LIMITED OBLIGATIONS OF THE CITY, SECURED BY THE INDENTURE, AND WILL BE PAYABLE SOLELY FROM THE NET REVENUES AND AMOUNTS IN THE SPECIAL FUNDS DESCRIBED HEREIN. NEITHER THE GENERAL CREDIT OF THE CITY, NOR THAT OF THE STATE OF OHIO OR OF ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS AND THE OWNERS AND HOLDERS OF THE SERIES 2020 BONDS DO NOT HAVE THE RIGHT TO HAVE ANY EXCISES OR TAXES LEVIED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE CITY, FOR THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS. Statutory Debt Limitations Generally

The City may issue voted general obligation bonds, and notes issued in anticipation thereof, pursuant to a vote of the electors of the City. Ad valorem taxes, without limitation as to amount or rate, assessed to pay debt service on voted bonds are authorized by the electors at the same time they authorize issuance of the bonds. Such voted debt is subject to the direct debt limitations but is not subject to the indirect debt limitation. (See "Direct Debt Limitations" below.) Voted obligations may also be issued by certain overlapping subdivisions.

General obligation bonds, and notes issued in anticipation thereof, may also be issued by the City (and certain overlapping political subdivisions, such as the Marysville Exempted Village School District and the County) without a vote of the electors. Unvoted debt is subject to both the direct and indirect debt limitations. (See "Direct Debt Limitations" and "Indirect Debt Limitation")

Following are descriptions of the statutory and constitutional debt and ad valorem property tax limitations applying to the City's presently outstanding and projected bond and note indebtedness, and certain other long term financial obligations of the City.

Direct Debt Limitations

Revised Code Section 133.05 provides that, exclusive of certain "exempt debt" (discussed below), the net principal amount of unvoted general obligation debt of the City may not exceed five and one-half percent (5.5%) of the total value of all property in the City as listed and assessed for taxation. Revised Code Section 133.05 also provides that the net principal amount of both voted and unvoted general obligation debt of the City may not exceed ten and one-half percent (10.5%) of the total value of all property in the City as listed and assessed for taxation. These two limitations, referred to as "the direct debt limitations," may be amended from time to time by the Ohio General Assembly.

Ohio law provides that certain forms of municipal debt are exempt from the direct debt limitations ("exempt debt"). Exempt debt includes, among others, general obligation debt, to the extent that such debt is "self-supporting" (that is, revenues from the facilities financed are sufficient to pay applicable operating and maintenance expenses and related debt service and other requirements); bonds issued in anticipation of the collection of special assessments; revenue bonds, such as the Series 2020 Bonds; notes issued in anticipation of the collection of current revenues or in anticipation of the proceeds of a specific tax levy; notes issued for certain emergency purposes; and bonds issued to pay final judgments. Notes issued in anticipation of such bonds are also exempt from the direct debt limitations.

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In calculating debt subject to the direct debt limitations, the amount of money in a City's bond retirement fund allocable to the principal amount of non-exempt debt is deducted from gross non-exempt debt.

Without consideration of money in the City's bond retirement fund, and based on the currently

applicable assessed valuation of $479,647,040:

(a) The total voted and unvoted non-exempt debt that the City could issue subject to the 10-1/2% limitation described above is $50,362,939.20. The total City non-exempt debt which will be outstanding after delivery of the Series 2020 Bonds is $0.00, leaving the full borrowing capacity of $50,362,939.20 within the limitation for combined voted and unvoted non-exempt debt; and

(b) The total unvoted non-exempt debt that the City could issue subject to the 5-1/2%

limitation is $26,380,587.20. The total City non-exempt debt subject to such limitation which will be outstanding after issuance of the Series 2020 Bonds is $0.00, leaving the full borrowing capacity of $26,380,587.20 within the 5-1/2% limitation for unvoted non-exempt debt.

Indirect Debt Limitation

Unvoted general obligation bonds and bond anticipation notes cannot be issued by the City unless the tax required to be imposed on taxable property in the City for the payment of the debt service on (a) such bonds (or the bonds in anticipation of which notes are issued), and (b) all outstanding unvoted general obligation bonds (including bonds in anticipation of which notes are issued) of the combination of overlapping taxing subdivisions in the City resulting in the highest tax rate required for such debt service, in any one year, is ten mills or less per $1.00 of assessed valuation. This indirect debt limitation, the product of which is commonly referred to as the "ten-mill limitation," is imposed by a combination of the provisions of Article XII, Sections 2 and 11 of the Ohio Constitution and Revised Code Section 5705.02.

The ten-mill limitation is the maximum aggregate millage for all purposes that may be levied on any single piece of property by all overlapping taxing subdivisions without a vote of the electors. The ten mills which may be levied without a vote of the electors is in fact levied, collected and allocated among the City and its overlapping taxing subdivisions for general fund purposes pursuant to a statutory formula.

This "inside" millage allocated to each overlapping taxing subdivision is required by present Ohio law to be used first for the payment of debt service on unvoted general obligation debt of the subdivision, unless provision has been made for its payment from other sources. The balance of the millage is available for other purposes of the subdivision. Thus, to the extent this inside millage is required for debt service of a taxing subdivision (which may exceed the formula allocation to that subdivision), the amount that would otherwise be available to that subdivision or to other such overlapping subdivisions for general fund purposes is reduced.

A political subdivision's allocation of inside millage can be exceeded only in the event it is required for the payment of debt service on its unvoted general obligation debt and, in that case, the inside millage allocated to the other overlapping subdivisions would be reduced proportionally to bring the aggregate levies of inside millage down to ten mills.

In case of notes issued in anticipation of the issuance of unvoted general obligation bonds, the highest annual debt service estimated for the bonds anticipated by the notes is used to calculate the millage required.

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Revenue bonds, such as the Series 2020 Bonds, and notes in anticipation of revenue bonds, are not included in debt subject to the ten-mill limitation since they are not general obligations of the City, and neither the general revenue nor the full faith and credit of the City are pledged for their payment.

The ten-mill limitation applies to all unvoted general obligation debt even if debt service on some of such debt is expected to be paid in fact from special assessments, utility earnings or other sources.

In calculating whether or not unvoted debt to be issued by the City is within the ten-mill limitation, it is necessary to determine the total outstanding debt service requirements within the ten-mill limitation of all the taxing subdivisions overlapping the City.

THE SERIES 2020 BONDS ARE NOT GENERAL OBLIGATION DEBT AND ARE PAYABLE SOLELY FROM THE NET REVENUES AND AMOUNTS IN THE SPECIAL FUNDS DESCRIBED HEREIN. THE SERIES 2020 BONDS, THEREFORE, ARE NOT SUBJECT TO THE STATUTORY DEBT LIMITATIONS.

Charter Millage Limitation

Pursuant to its Charter, the City has increased the amount of millage available to cover unvoted debt. The City has an additional five mills available as a result of such Charter millage. Pursuant to Revised Code Section 5705.18, the Charter millage limitation is in addition to the ten-mill limitation that would otherwise apply to the City.

The highest debt service requirement in any year for all City unvoted debt is estimated to be approximately $2,557,373.50* and is expected to be paid by sources other than ad valorem taxes, such as City income taxes and enterprise revenues.

Based upon the maximum debt service schedule required for the City's outstanding general obligation debt (but excluding therefrom debt service requirements for voted debt), the highest annual debt service requirement in any year for all City, debt subject to the ten-mill limitation, is estimated to be approximately $2,557,373.50*. The payment of that annual debt service would require a levy of approximately 5.3318* mills per $1.00 of assessed valuation based on current (collection year 2020) assessed valuation of $479,647,040. Within the ten-mill limitation, according to the Union County Auditor, 2.0021 mills have been allocated to unvoted debt of overlapping subdivisions in Union County. After taking into account the 5.3318* mills allocated to the City's unvoted debt, within the ten-mill limitation, and the 2.0021 mills allocated to overlapping subdivisions, an additional 1.2870* mills are available within the ten-mill limitation. Along with the City's five Charter mills, a total of 6.28703* mills are available to support additional unvoted debt of the City. Based upon the current assessed valuation of the City, this remaining millage capacity would permit the City to issue approximately $39,548,251.46* of additional 20-year bonds, assuming an interest rate of 5.50% (and subject to the 5.5% percent direct debt limit heretofore described).

Bond Anticipation Notes

Under Ohio law, notes, including renewal notes, issued in anticipation of the issuance of general obligation bonds may be issued and outstanding from time to time up to a maximum period of 20 years from the date of issuance of the original notes, except that the maximum maturity for notes issued in anticipation of general obligation bonds payable from special assessments is approximately five years. Any period in excess of five years must be deducted from the permitted maximum maturity of the bonds anticipated, and

* Estimated. Assumes the City's $2,435,000 Various Purpose Notes, Series 2019C, dated August 22, 2019 are amortized over 13 years at 5.0% and the City's $4,535,000 Various Purpose Notes, Series 2020A, dated March 26, 2020 are amortized over 17 years at 5.0%.

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portions of the principal amount of notes outstanding for more than five years must be retired in amounts at least equal to, and payable not later than, principal maturities that would have been required if bonds had been issued at the expiration of the initial five-year period. The last maturity of any bonds issued to refund general obligation bond anticipation notes may not be later than the year of last maturity permitted by law for the bonds anticipated.

$6,970,000 of the debt of the City is in the form of general obligation bond anticipation notes. This balance will be unaffected by the issuance of the Series 2020 Bonds. Such bond anticipation notes, however, are expected to be renewed in 2020 or 2021.

Bond anticipation notes may be retired at maturity from the proceeds of the sale of renewal notes, the proceeds of the sale of the bonds anticipated by such notes, from other available funds of the City, or from a combination of these sources.

The ability of the City to retire its outstanding bond anticipation notes from the proceeds of the sale of either renewal notes or bonds will be dependent upon the marketability of such renewal notes or bonds under market conditions then prevailing. Under present Ohio law, there is no ceiling on the annual interest rate permitted on general obligation notes and bonds of municipalities.

City General Obligation Debt Currently Outstanding

The City currently has the following issues of general obligation bonds and notes outstanding:

Outstanding General Obligation Debt City of Marysville, Ohio

Issue Dated Date Final

Maturity

Balance Outstanding on May 20, 2020

Bonds

Refunding Bonds, Series 2007 04/03/2007 12/01/2020 $ 760,000Various Purpose Bonds, Series 2011 10/26/2011 12/01/2031 9,960,000Park Construction and Improvement Bonds, Series 2014

10/30/2014 12/01/2024 670,000

Wastewater Treatment System Bonds, Series 2015

04/22/2015

12/01/2047

9,445,000

Total Bonds

$20,835,000

Bond Anticipation Notes Various Purpose Notes, Series 2019C 08/22/2019 08/20/2020 $2,435,000Various Purpose Notes, Series 2020A 03/26/2020 03/25/2021 4,535,000

Total Bond Anticipation Notes

$6,970,000

Total General Obligation Debt $27,805,000


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Leases and Other Long Term Obligations

The City has the other following long-term obligations: A. Leases Aside from basic leases for copiers and a phone system, the City has one lease obligation for a street sweeper. The term of the sweeper lease is for five years and expires on February 1, 2023. The annual payment for the sweeper lease is $276,752.35, amortized at an interest rate of 3.82%. The City will own the sweeper at the conclusion of the lease, and currently has $55,350 of equity in the sweeper.

B. Utility Revenue Bonds After issuance of the Series 2020 Bonds, the City will have the following issues of sewer and water revenue bonds (collectively, the "Utility Revenue Debt") outstanding:

Outstanding Utility Revenue Debt City of Marysville, Ohio

Issue

Dated Date

Final Maturity

Balance Outstanding May 20, 2020

Wastewater Treatment System Revenue Refunding Bonds, Series 2015

04/22/2015 12/01/2047 $41,380,000

Wastewater Treatment System Revenue Refunding Bonds, Series 2016

04/06/2016 12/01/2047 66,160,000

Water System Mortgage Revenue Refunding Bonds, Series 2016

06/15/2016 12/01/2038 16,530,000

Wastewater System Revenue Bonds, Series 2016B

09/15/2016 12/01/2035 8,060,000

The Series 2020 Bonds 05/20/2020 12/01/2049 40,465,000

Total $172,595,000


The City's Utility Revenue Debt is not general obligation debt and is payable only from revenues of sewer and water enterprises. The respective bond indentures for the various issues comprising the City's Utility Revenue Debt have certain restrictive covenants which principally require that bond reserve funds be maintained and charges for services to customers be in sufficient amounts, as defined, to satisfy the obligations under each respective indenture. In addition, special provisions exist regarding covenant violations, redemptions of principal and maintenance or properties in good condition.


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Debt Service Requirements for the Bonds

As noted herein, the Series 2020 Bonds are not general obligation debt and are payable only from the Net Revenues and amounts in the Special Funds described herein.

The following schedule presents the City's actual debt service requirements for the Bonds, with the Series 2020 Bonds presented separately:

Outstanding Debt Service Requirements for the Bonds City of Marysville, Ohio

Calendar

Year

Series 2016 Bonds Series 2020 Bonds Total

Debt Service Principal Interest Principal Interest 2020 $870,000.00 $643,800.00 $ 225,000.00 $ 781,614.44 $2,520,414.442021 870,000.00 609,000.00 215,000.00 1,464,200.00 3,158,200.002022 870,000.00 574,200.00 255,000.00 1,455,600.00 3,154,800.002023 870,000.00 539,400.00 300,000.00 1,445,400.00 3,154,800.002024 870,000.00 522,000.00 330,000.00 1,433,400.00 3,155,400.002025 870,000.00 487,200.00 380,000.00 1,420,200.00 3,157,400.002026 870,000.00 452,400.00 430,000.00 1,405,000.00 3,157,400.002027 870,000.00 417,600.00 480,000.00 1,387,800.00 3,155,400.002028 870,000.00 382,800.00 535,000.00 1,368,600.00 3,156,400.002029 870,000.00 348,000.00 590,000.00 1,347,200.00 3,155,200.002030 870,000.00 313,200.00 650,000.00 1,323,600.00 3,156,800.002031 870,000.00 278,400.00 705,000.00 1,304,100.00 3,157,500.002032 870,000.00 243,600.00 765,000.00 1,275,900.00 3,154,500.002033 870,000.00 208,800.00 835,000.00 1,245,300.00 3,159,100.002034 870,000.00 174,000.00 900,000.00 1,211,900.00 3,155,900.002035 870,000.00 139,200.00 970,000.00 1,175,900.00 3,155,100.002036 870,000.00 104,400.00 1,045,000.00 1,137,100.00 3,156,500.002037 870,000.00 69,600.00 1,110,000.00 1,105,750.00 3,155,350.002038 870,000.00 34,800.00 1,180,000.00 1,072,450.00 3,157,250.002039 -- -- 2,130,000.00 1,025,250.00 3,155,250.002040 -- -- 2,215,000.00 940,050.00 3,155,050.002041 -- -- 2,305,000.00 851,450.00 3,156,450.002042 -- -- 2,395,000.00 759,250.00 3,154,250.002043 -- -- 2,495,000.00 663,450.00 3,158,450.002044 -- -- 2,595,000.00 563,650.00 3,158,650.002045 -- -- 2,695,000.00 459,850.00 3,154,850.002046 -- -- 2,805,000.00 352,050.00 3,157,050.002047 -- -- 2,890,000.00 267,900.00 3,157,900.002048 -- -- 2,975,000.00 181,200.00 3,156,200.002049 -- -- 3,065,000.00 91,950.00 3,156,950.00

Total $16,530,000.00 $6,542,400.00 $40,465,000.00 $30,517,064.44 $94,054,464.44


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C. Special Obligation Debt The City has the following issues of special obligation debt (the "Special Obligation Debt") outstanding:

Outstanding Special Obligation Debt City of Marysville, Ohio

Issue

Dated Date

Final Maturity

Balance Outstanding May 20, 2020

Special Obligation Revenue Bonds, Series 2014

08/27/2014 12/01/2034 $8,660,000

Special Obligation TIF Revenue Bonds, Series 2018 (Cook's Pointe)

03/07/2018 12/01/2049 4,870,000

Total $13,530,000


The Special Obligation Revenue Bonds, Series 2014 (the "2014 Special Obligation Revenue

Bonds") are not general obligation debt and secured under a Trust Agreement, dated as of August 27, 2014, between the City and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2014 Special Obligation Revenue Bonds are payable from the non-tax revenues of the City.

The Special Obligation TIF Revenue Bonds, Series 2018 (the "2018 Special Obligation TIF

Revenue Bonds") are not general obligation debt and secured under an Amended and Restated Service Payment Agreement, dated as of January 31, 2018, between the City and Three D Properties, LLC. The 2018 Special Obligation TIF Revenue Bonds are payable from payments in lieu of taxes made in connection with a development in the City known as Cook's Pointe.

Future Financings

The City anticipates additional capital spending over the next several years as follows: in 2021 issuing debt in the amount of $1,203,917 to support roadway improvements to State Route 38, 11th Street, Cottage Street and the Uptown alley; in 2022 issuing debt in the amount of $578,601 to support road paving, as well as additional improvements to Cottage Street and the Uptown alley; in 2023 issuing debt in the amount of $1,474,702 for State Route 31 phase 3 improvements; and in 2024 issuing debt in the amount of $230,774 for the installation of a traffic signal at Coleman's Crossing and Industrial Parkway. City Insurance

The City maintains comprehensive insurance coverage with the Public Entities Proof of Claim for real property, building contents and vehicles in a maximum amount of $148,076,206 with deductible clauses ranging from $500 for vehicles to $5,000 for real and personal property. In addition, the City maintains liability coverage with limits of $3,000,000. Vehicle policies include liability coverage for bodily injury and property damage. Ohio law provides immunity for political subdivisions such as the City from liability in damages. The immunity covers injury, death, or loss to persons or property allegedly caused by an act or omission of such political subdivisions or their employees in connection with governmental and proprietary functions, as defined in State statutes. The statutes have no effect on any liability imposed by federal law or other federal cause of action. Pursuant to Ohio law, there are, however, five areas in which a political subdivision

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may be held liable for such loss. These include the negligent operation of a motor vehicle by employees engaged within the scope of their employment and authority; negligent performance of proprietary functions; negligent failure to keep public roads in repair, and other negligent failure to remove obstructions from public roads; negligence of employees due to physical defects within or upon the grounds of buildings used in the performance of governmental functions, excluding jails, juvenile detention workhouses and other detention facilities; and liability specifically imposed by statute. Ohio law also imposes a two-year statute of limitations and puts limits on the damages which may be recovered from such political subdivisions. No punitive or exemplary damages can be recovered, and any insurance benefits are deducted from any award against a political subdivision. Although there is no limitation with respect to compensatory damages representing a person's economic loss, there is a $250,000 per person ceiling on the compensatory damage that represents a person's non-economic loss in cases other than wrongful death, in which case there is no maximum limitation. Cyber-Security

The City, like many other large public and private entities, relies on a large and complex technology environment to conduct its operations and faces multiple cybersecurity threats, including, but not limited to, hacking, phishing, viruses, malware and other attacks on its computing and other digital networks and systems (collectively, "Systems Technology"). As a recipient and provider of personal, private, or sensitive information, the City may be the target of cybersecurity incidents that could result in adverse consequences to the City and its Systems Technology, requiring action to mitigate the consequences. Cybersecurity incidents could result from unintentional events or from deliberate attacks by unauthorized entities or individuals attempting to gain access to the City's Systems Technology for the purposes of misappropriating assets or information or causing operational disruption and damage.

To mitigate the risk of operations impact and/or damage from cybersecurity incidents or cyber-attacks, the City invests in multiple forms of cybersecurity and operational safeguards. While City cybersecurity and operational safeguards are periodically tested, no assurances can be given by the City that such measures will ensure against cybersecurity threats and attacks, and any breach could damage the City's Systems Technology and cause material disruption to the City's finances or operations. The costs of remedying any such damage or protecting against future attacks could be substantial. Furthermore, cybersecurity breaches could expose the City to material litigation and other legal risks, which could cause the City to incur material costs.

In the event of a Systems Technology breach, the City has invested in a cyber-security insurance

policy. The policy provides for a variety of coverages: cyber-crime, liability, breach response and business loss. Maximum coverage ranges from $250,000 to $5,000,000 with deductibles ranging from $5,000 to $10,000.

FINANCES OF THE CITY

THE SERIES 2020 BONDS ARE SPECIAL LIMITED OBLIGATIONS OF THE CITY, SECURED BY THE INDENTURE, AND WILL BE PAYABLE SOLELY FROM THE NET REVENUES AND AMOUNTS IN THE SPECIAL FUNDS DESCRIBED HEREIN. NEITHER THE GENERAL CREDIT OF THE CITY, NOR THAT OF THE STATE OF OHIO OR OF ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS AND THE OWNERS AND HOLDERS OF THE SERIES 2020 BONDS DO NOT HAVE THE RIGHT TO HAVE ANY EXCISES OR TAXES LEVIED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION THEREOF, INCLUDING

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THE CITY, FOR THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE SERIES 2020 BONDS. Financial Reports and Audits

The City's fiscal year is the calendar year. The City maintains its accounts, appropriations and other fiscal records in accordance with the procedures established and prescribed by the State Auditor. The State Auditor is charged by Ohio law with the responsibility of auditing the financial statements of each taxing subdivision and most agencies and public institutions. The State Auditor is charged by law with the responsibility for auditing the financial statements of each taxing subdivision and most public agencies and institutions. A financial report for each fiscal year is required to be filed with the State Auditor pursuant to Revised Code Section 117.38. Such reports are required to be submitted to the State Auditor at the close of each fiscal year. At the time of filing of such report, the Director of Finance is required to publish a notice that the report is completed and available for review in the Director of Finance's office.

The most recent audit of the City's financial statements by the State Auditor was completed through the fiscal year ending December 31, 2018 and was reviewed by the City's administrative staff during the post-audit conference on June 21, 2019. The Audit revealed no findings for recovery. No bring-down procedures have been undertaken by the Auditor since the date of the financial statements. The financial statements presented fairly the overall financial condition of the City. The Audited Financial Statements for the fiscal year ended December 31, 2018 are attached hereto as APPENDIX C.

Except for audits by, or by certified public accountants at the direction of, the State Auditor pursuant to Ohio law and audits under federal program requirements, no independent audit of the City's financial records is made.

All Ohio municipalities and counties are required to prepare their annual financial reports on the basis of generally accepted accounting principles ("GAAP"). Governmental Accounting Standards Board ("GASB") pronouncements and Financial Accounting Standards Board pronouncements are the principal sources used to determine the accounting principles employed. These publications, among other things, provide for a modified accrual basis of accounting for governmental funds and for a full accrual basis of accounting for proprietary funds and for each major and aggregated non-major fiduciary funds. The publications also further provide for the preparation of balance sheets for each major and non-major fund, and statements of revenues and expenditures, and changes in fund balances (major and aggregated non-major governmental funds) or statements of revenues, expenses and changes in retained earnings/equity (major and aggregated non-major proprietary funds) and statement of cash flows. The principles further require preparation of a statement of net assets and a statement of activities for the entity's business type and government type activities on the full accrual basis of accounting, and management's discussion and analysis of major events and transactions during the year.

General Fund Revenue Sources

The General Fund is the main operating fund of the City. It is the fund from which most of the City's expenditures are paid and into which most of the City's revenues are deposited. The City derives most of its revenues from a tax on real and tangible personal property, a municipal income tax, the local government fund, estate taxes, and fees for services. The local government fund includes moneys derived from portions of state general revenue fund taxes that are earmarked for distribution to local governmental units and the rollback reimbursement (see "CITY TAX BASE – State Reimbursement of Property Tax Revenues –

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Rollback and Homestead Exemption Reimbursement" in this APPENDIX A). These programs are subject to repeal or modification by the General Assembly of the State.

Although the security for the City's general obligation debt is its pledge to pay such debt from ad

valorem taxes to be levied on all taxable property within the City, debt service for the City is in practice paid from four sources: voted property tax revenues, income tax revenues, local government fund, and enterprise surcharge revenues.

The following table sets forth the historical revenues of the major revenue sources of the City's General Fund.

General Fund – Major Tax Revenue Sources City of Marysville (Non-GAAP basis)

Year

City

Income Tax

% of General

Fund

Property (Ad Valorem)

Taxes

% of General

Fund

Local Government

Fund

% of General

Fund

2014 $15,042,306 87.8% $1,423,758 8.3% $194,776 1.1%

2015 15,951,599 82.0 1,490,098 7.7 200,237 1.0

2016 17,456,251 82.0 1,456,793 6.8 181,037 0.9

2017 18,801,562 82.8 1,602,135 7.1 175,926 0.8

2018 19,037,167 83.4 1,639,428 7.2 178,135 0.8

2019 19,269,137 80.7 1,664,568 7.0 225,327 0.9


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APPENDIX B

SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE

Certain material provisions of the Indenture are discussed below. The discussion does not purport to be complete and is subject in all respects to the provisions of, and is qualified in its entirety by reference to, the Indenture, and is subject to certain provisions of the Bond Insurer (as defined below). Copies of the Indenture are available from the Original Purchaser and, after delivery of the Series 2020 Bonds, for inspection at the principal corporate trust office of the Trustee. Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the Original Indenture. Terms neither defined herein nor in the Original Indenture shall have the meaning assigned to them in accordance with industry standards. Definitions "Additional Bonds" means any notes, bonds or other obligations of the Issuer that may be issued on parity with the Series 2016 Bonds and the Series 2020 Bonds pursuant to the Indenture. "Authenticating Agent" means, with respect to the Series 2016 Bonds and the Series 2020 Bonds the Trustee, and, with respect to any Series of Additional Bonds, the authenticating agent identified in the Bond Legislation for such Series of Additional Bonds, or if no authenticating agent is so identified, the Trustee. "Authorized Denomination" means, with respect to the Series 2020 Bonds, $5,000, or such other amount as will be provided in the Certificate of Award with respect to Series 2020 Bonds which are Capital Appreciation Bonds, and, with respect to any other Series of Bonds, $5,000 unless a different amount is set forth in the Bond Legislation for such Series of Bonds. "Authorized Officer" or "Authorized Officers" of the Issuer means any person or persons specifically authorized by resolution or ordinance of the Legislative Authority to take the action intended, and, if there is no such specific authorization, the Executive Officer or the Fiscal Officer. "Bonds" means the Series 2016 Bonds, Series 2020 Bonds and Additional Bonds. "Bondholder" or "holder" means the person in whose name any Bond is registered. "Bond Fund" or "City of Marysville, Ohio - Water System Bond Fund" means the fund of that name created by the Bond Legislation under the Original Indenture. "Bond Insurer" means the entity issuing a municipal bond insurance policy, and with respect to the Series 2020 Bonds, Build America Mutual Assurance Company ("BAM").

"Bond Legislation" means, when used in connection with the Series 2020 Bonds, Ordinance No. 006-2020 adopted by the Legislative Authority on February 10, 2020, including the Certificate of Award referred to therein, and, when used in connection with Additional Bonds or to relate to Bonds when Additional Bonds are outstanding, means or includes, as the case may be, such ordinance to the extent applicable and the ordinance or other legislation providing for the issuance of such Additional Bonds, all

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as the same may be amended, modified or supplemented by any amendments or modifications thereof and supplements thereto entered into in accordance with the provisions of the Indenture. "Bond Purchase Agreement" means, as to the Series 2020 Bonds, the Bond Purchase Agreement, dated April 29, 2020, between the Issuer and the Underwriter, providing for the sale of the Series 2020 Bonds to the Original Purchaser. "Bond Registrar" means the Trustee, until a successor Bond Registrar will have become such pursuant to applicable provisions of the Indenture. Any Bond Registrar designated under the Indenture will be a transfer agent registered in accordance with Section 17(A)(c) of the Securities Exchange Act of 1934. "Bond Reserve Fund" or "City of Marysville, Ohio - Water System Bond Reserve Fund" means the fund of that name created under the Original Indenture. "Bond Reserve Fund Facility," or with respect to the Series 2020 Bonds, "Bond Reserve Fund Surety Bond," means a letter of credit, surety bond or other credit facility that, if determined by the Fiscal Officer to be the most economical manner of providing all or part of the Bond Reserve Requirement, is issued by a Bond Reserve Fund Facility Provider for the benefit of the holders of the Bonds and that guarantees or assures the timely payment of principal of and interest on the Bonds, subject only to notification that there are insufficient funds for such payment. The Bond Reserve Fund Facility (a) will comply with the requirements of Section 401 of the Indenture, (b) will be in a stated amount that, when added to the funds, if any, deposited in the Bond Reserve Fund, will equal the Bond Reserve Requirement and (c) will either remain in effect so long as the Bond Reserve Requirement, which in whole or in part is met by the Bond Reserve Fund Facility, continues or will provide for a draw by the Trustee or payment thereunder for deposit in the Bond Reserve Fund at or prior to the expiration of the Bond Reserve Fund Facility (unless renewed or replaced by a new Bond Reserve Fund Facility) in an amount equal to the stated amount. "Bond Reserve Fund Facility Provider" means the entity issuing a Bond Reserve Fund Facility, and (a) with respect to the Series 2016 Bonds, Build America Mutual Assurance Company ("BAM"), and (b) with respect to the Series 2020 Bonds, BAM. "Bond Reserve Requirement" means, as of the date of any calculation, that amount which is equal to the least of (a) the maximum amount of Bond Service Charges required to be paid during any future Fiscal Year, (b) 125% of average annual debt service, and (c) an amount equal to ten percent (10%) of the proceeds of the sale of the Series 2020 Bonds. "Bond Service Charges" means, for any period of time, the principal of (including mandatory sinking fund payments) and interest and any premium payable on the Bonds during that period. "Bond Year" means the annual period provided for computation of the Rebate Amount pursuant to Section 148 of the Code. "Business Day" means any day of the year, other than: (a) a Saturday; (b) a Sunday; (c) a day on which banks located in Cincinnati, Ohio are required or authorized by law to remain closed; or (d) a day on which the New York Stock Exchange is closed. "Capital Appreciation Bonds" means, as to Bonds of any Series, Bonds identified in the Bond Legislation for that Series which do not pay interest on a current basis but with respect to which interest will be compounded on each Interest Payment Date and paid only at maturity.

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"Capitalized Interest" means, with respect to any Series of Additional Bonds, the amount set forth in the Bond Legislation for such Series of Bonds. "Certificate of Award" means the Certificate of Award authorized by the Bond Legislation providing for issuance of the Series 2020 Bonds. "Charter" means the Charter of the Issuer.

"Clerk" means the Clerk of the Legislative Authority and any officer of the Issuer who succeeds to the functions thereof. "Code" means the Internal Revenue Code of 1986, as amended, and references to the Code and Sections of the Code will include relevant regulations and proposed regulations thereunder, as amended, and any successor provisions to such Sections, regulations or proposed regulations. "Construction Fund" or "City of Marysville, Ohio - Water System Construction Fund" means with respect to any Series of Bonds a fund of that name, if any, created by the Bond Legislation for that Series of Bonds. "Construction Period" means the period between the beginning of the acquisition, construction and installation of improvements to be financed with a Series of Bonds and the date of substantial completion thereof as certified pursuant to the Indenture. "Custodian" means a bank or trust company, organized and existing under the laws of the United States of America or any state thereof which (a) has capital and surplus at least as great as that required under the Indenture for a successor to the Trustee and (b) is qualified to exercise trust powers in the state in which its principal office is located. "Eligible Investments" means, to the extent permitted by law:

(a) bonds, notes or other obligations of, or obligations guaranteed by, the United States of America, or those for which the faith of the United States of America is pledged for the payment of principal and interest thereon;

(b) bonds, notes, debentures, or any other obligations or securities

issued by any federal government agency or instrumentality; (c) bonds and other obligations of the State of Ohio; (d) no-load money market mutual funds consisting exclusively of

obligations described in clauses (a) or (b) above and repurchase agreements secured by such obligations, provided that investments in securities described in this part are made only through eligible institutions mentioned in Ohio Revised Code Section 135.03;

(e) written repurchase agreements not exceeding thirty (30) days in

length secured fully by obligations of the types specified in clause (a), (b), (c), and (d) above and issued by any institution eligible to become a public depository as permitted under Ohio Revised

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Code Section 135.03, which collateral (a) is in the custody of the Trustee or an agent designated by the Issuer, (b) is not subject to any third party claims, and (c) has a market value equal to at least 102% of the amount invested and be market to market daily; and

(f) the Ohio Subdivisions' Investment Fund created and administered

by the Treasurer of the State of Ohio pursuant to Ohio Revised Code Section 135.45 ("STAROhio").

"Event of Default" means an Event of Default as defined in the Indenture and summarized herein. "Executive Officer" means the Mayor of the Issuer and any officer of the Issuer who succeeds to the function thereof. "First Supplemental Indenture" means the First Supplemental Indenture of Mortgage dated as of November 15, 1993, that amends and supplements the Original Indenture, between the Issuer and the Original Trustee, that secured the Series 1993 Bonds. "Fiscal Officer" means the Director of Finance of the Issuer and any officer of the Issuer who succeeds to the functions thereof. "Fiscal Year" or "fiscal year" means, with respect to the Utility, the calendar year, unless otherwise provided by law or permitted by law if a voluntary change in Fiscal Year is approved by the Trustee after receipt of written notice from the Fiscal Officer of the proposed change in the Fiscal Year. "Fourth Supplemental Indenture" means the Fourth Supplemental Indenture of Mortgage dated as of October 15, 2007, between the Issuer and the Trustee, that amends and supplements the Original Indenture, First Supplemental Indenture, Second Supplemental Indenture, and Third Supplemental Indenture, that secured the Series 2007 Bonds. "Fifth Supplemental Indenture" means the Fifth Supplemental Indenture of Mortgage dated as of June 15, 2016, between the Issuer and the Trustee, that amends and supplements the Original Indenture, First Supplemental Indenture, Second Supplemental Indenture, Third Supplemental Indenture, and Fourth Supplemental Indenture, and secures the Series 2016 Bonds,. "Indenture" means, collectively, the Original Indenture, securing the Bonds, as amended and supplemented by the First Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture and the Sixth Supplemental Indenture as the same may be duly modified, amended or supplemented from time to time in accordance with the terms thereof. "Independent Engineer" means any engineer, firm of engineers or nationally recognized consultant (whether or not trained as an engineer), independent of the Issuer, experienced in the construction and operation of water systems such as the Utility, selected by the Issuer. "Insurance Consultant" means a person who is not an officer or employee of the Issuer, or a firm which is not a partnership, corporation or association having a partner, principal director, officer, member or substantial stockholder who is an officer or employee of the Issuer, qualified to survey risks and to recommend insurance coverage for plants and systems engaged in operations similar to those of the Utility and having a favorable reputation for skill and experience in such surveys and such recommendations, and

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so long as meeting the foregoing requirements, who may be a broker or agent with whom the Issuer transacts business. "Interest Payment Date" means, with respect to the Series 2020 Bonds, the first (1st) day of each June and December commencing December 1, 2020, and, with respect to each Series of Additional Bonds, the dates set forth in the Bond Legislation for such Series of Additional Bonds. "Investment Company" means an open-end diversified management investment company registered under the Investment Company Act of 1940, as amended. "Issuer" or "City" means the City of Marysville, Ohio, a municipal corporation and political subdivision in and of the State of Ohio, located in the County of Union thereof, and its lawful successors. "Legal Officer" means the Law Director of the Issuer and any officer of the Issuer who succeeds to the functions thereof. "Legislative Authority" means the Council of the Issuer and any officer, board, commission or other body which hereafter succeeds, by operation of law, to the powers and duties of such council. "Moody's" means Moody's Investors Service, Inc., a corporation organized and existing under the laws of the State of Delaware, its successors and their assigns, and, if such corporation is dissolved or liquidated or no longer performs the functions of a securities rating agency, "Moody's" will be deemed to refer to any other nationally recognized securities rating agency designated by the Legislative Authority by notice to the Trustee.

"Mortgaged Properties" means:

(a) All the title and interests of the Issuer in and to the real estate and in the easements described in the Indenture and relating to the Utility, together with all other real properties now or hereafter made subject to the lien of the Indenture by supplemental indenture or otherwise (collectively the "Utility Site");

(b) All buildings, structures, additions, improvements, facilities, transmission and distribution

lines, fixtures, fittings, machinery, apparatus, installations, furniture, equipment and other tangible property, now or hereafter located in, upon or under, or based at the Utility Site or located in or on any public streets, roads, rights-of-way or other public property and used in connection with the Utility (collectively the "Utility Facilities");

(c) All easements, rights of way or use, licenses, privileges, franchises, servitudes, tenements,

hereditaments and all appurtenances now or hereafter belonging to or anywise appertaining to the Utility Site or the Utility Facilities including, without limitation, all right, title and interest in any street, open or proposed;

(d) All revenues, payments, repayments, income, charges, rentals and moneys derived by the

Issuer from the lease, sale or other disposition of any portion of the Utility Site or Utility Facilities and the proceeds from any insurance or condemnation award pertaining thereto;

(e) All right, title and interest of the Issuer in any property, real, personal, mixed, tangible or

intangible, of every nature and kind and wheresoever situated now owned and hereafter acquired and forming a part of, or, directly appertaining to the business, maintenance or operation of the Utility (other than that property pledged in Clause Two of the Original

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Indenture) including, to the extent provided in the Indenture, Motor Vehicles and accounts receivable; and

(f) The franchise provided for in the Bond Legislation for the Bonds, under which, in case of

foreclosure, the purchaser may operate the Utility.

"Municipal Bond Insurance Policy" means the municipal bond insurance policy issued by the Bond Insurer assuring the payment when due of principal of and interest on the Series 2020 Bonds, as provided therein.

"Net Revenues" means for any period the difference between Revenues and Operating and Maintenance Expenses for such period. "Notice by Mail" or "notice" of any action or condition "by Mail" will mean a written notice meeting the requirements of the Indenture mailed by certified mail return receipt requested to the holders of specified Bonds at the addresses shown on the registration books maintained pursuant to the Indenture. "Operating and Maintenance Expenses" means all expenses for the operation, maintenance, administration and ordinary current repairs of the Utility made in the usual course of business in order to maintain and operate the Utility in a reasonable and prudent manner, and including items normally included as essential expenses in the operating budget of municipally owned water systems, and further including, without limitation, insurance premiums, the Issuer's reasonable administrative expenses properly allocable to the Utility (including, without limitation, engineering, architectural, legal, consulting and accounting fees and expenses), any taxes or assessments, whether general or special, which are lawfully imposed on the Utility or on the revenue or income derived from the operation thereof, the Rebate Amount, charges for purchased power, telephone and other public or private utility services, and fees and expenses of the Trustee, the Bond Registrar, and any Authenticating and Paying Agents, fees and expenses payable to any Person providing a credit enhancement facility for any Series of Bonds, fees and expenses of Independent Engineers, architects, consultants (including, but not limited to, Insurance Consultants), accountants and attorneys retained by the Issuer, from time to time, to perform and carry out duties imposed on the Issuer by the Indenture, all as determined (except as otherwise specified in this definition) in accordance with generally accepted accounting principles consistently applied. Operating and Maintenance Expenses do not include: (1) Bond Service Charges on the Bonds or principal of or interest or premium on any other Bonds or bond anticipation notes issued by the Issuer; (2) any allowance (whether on capitalized leases or other debt) for amortization or depreciation of the Utility; and (3) any of the fees and expenses previously described which are paid from the Construction Fund. "Original Indenture" means the Indenture of Mortgage dated as of June 1, 1991, between the Issuer and the Original Trustee, that secured the Series 1991 Bonds. "Original Issuance Date" means as to Series 2020 Bonds, the date on which such Series 2020 Bonds are first authenticated and delivered to the Original Purchaser against payment therefor. "Original Purchaser" or "Underwriter" means, as to the Series 2020 Bonds, Stifel, Nicolaus & Company, Incorporated, and as to each Series of Additional Bonds the Person or Persons identified in the Bond Legislation for such Series of Additional Bonds. "Original Trustee" means The Fifth Third Bank, Cincinnati, Ohio.

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"Outstanding Bonds" or " Bonds Outstanding" or "Outstanding" when used in reference to Bonds means all Bonds that have been authenticated and delivered by the Authenticating Agent under the Indenture except:

(a) Bonds canceled by the Trustee on surrender, exchange or transfer or canceled because of payment at maturity or redemption;

(b) Bonds that are deemed to have been paid and discharged pursuant to the provisions of the

Indenture (which will not include Bonds paid with the proceeds of credit enhancement facilities, including drawings on the Municipal Bond Insurance Policy);

(c) Bonds in lieu of which others have been authenticated under the Indenture.

"Paying Agent" means with respect to the Series 2020 Bonds, the Trustee, and, with respect to any Series of Additional Bonds, the paying agent appointed in accordance with the Bond Legislation for such Series of Additional Bonds and, in either case, any successor paying agent appointed in accordance with the Indenture. "Principal office" or "Principal Office" of the Paying Agent means the principal corporate trust office of the Trustee if the Trustee is serving as Paying Agent, and, with respect to any other Paying Agent, the office thereof designated in writing to the Trustee. "Person" means one or more natural persons, firms, associations, partnerships, corporations or public bodies. "Principal Payment Date" means December 1 in any year in which Bonds of any Series mature or are subject to mandatory sinking fund redemption. "Project" means the acquisition, construction, expansion, rehabilitation, and improvement of the Utility, including the acquisition of land and interests in land related to the same, and related improvements thereto necessary for the enhanced efficiency and usefulness thereof. "Qualified Self Insurance" means insurance maintained through a program of self-insurance or, to the extent permitted by law, insurance maintained with an association in which the Issuer has a material interest or of which the Issuer has control, either singly or with others. "Rebate Amount" means the aggregate of Excess Earnings. "Record Date" means, with respect to the Series 2020 Bonds, the fifteenth (15th) day of the month preceding the month in which an Interest Payment Date occurs; and, with respect to any Series of Additional Bonds, the day or days identified as such in the Bond Legislation for such Series of Additional Bonds. "Revenue Account" means an account within the Revenue Fund established under the Indenture. "Rebate Fund" or "City of Marysville, Ohio - Water System Revenue Bonds Rebate Fund" means the fund of that name created under the Original Indenture. "Replacement and Improvement Fund" or "City of Marysville, Ohio - Water System Replacement and Improvement Fund" means the fund of that name created under the Original Indenture.

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"Replacement and Improvement Fund Requirement" means the sum of $1,000,000 or such greater amount as may be provided for in any supplemental indenture hereto; provided, however, that no such supplemental indenture will reduce the amount of the Replacement and Improvement Fund Requirement. "Revenue Fund" or "City of Marysville, Ohio - Water System Revenue Fund" means the fund of that name created under the Original Indenture. "Revenues" means all revenues received by or on behalf of the Issuer from or in connection with the ownership, operation, use and services of the Utility including, without limitation, any investment income realized from any investment made from any moneys credited to the Revenue Fund, the Bond Fund, the Bond Reserve Fund, the Replacement and Improvement Fund, and the Water System Reserve Fund, revenues pledged or appropriated for the benefit of the Utility, all rates, charges, rentals, and other income received by the Issuer or accrued to the Issuer, and other moneys pledged in the Indenture, to be deposited in the Revenue Fund. Revenues will not include (a) any income resulting from investment of moneys on deposit in the Construction Fund or the Rebate Fund, (b) proceeds of the Bonds, (c) proceeds of the sale of any portion of the Utility (to the extent such proceeds are not used to replace equipment or property of the Utility), or (d) proceeds of insurance (other than insurance which provides for lost revenue to the Utility when the Utility is unable to function) or eminent domain. "S&P" means Standard & Poor's Corporation, a corporation organized and existing under the laws of the State of New York, its successors and their assigns, and, if such corporation is dissolved or liquidated or is no longer perform the functions of a securities rating agency, "S&P" will be deemed to refer to any other nationally recognized securities rating agency designated by the Legislative Authority by notice to the Trustee. "Second Supplemental Indenture" means the Second Supplemental Indenture of Mortgage, dated as of April 1, 2002, between the Issuer and the Trustee, that secured the Series 2002 Bonds. "Series" means the Series 2020 Bonds, and, with respect to Additional Bonds, one or more of the series in which Additional Bonds are authorized to be issued. "Series 1991 Bonds" means the Water System Mortgage Revenue Bonds, Series 1991, dated June 1, 1991, issued in the original principal amount of $11,000,000, which principal amount was defeased by the Series 1993 Bonds. "Series 1993 Bonds" means the Water System Mortgage Revenue Bonds, Series 1993, dated November 15, 1993, issued in the original principal amount of $12,280,000, which principal amount was defeased by the Series 2003 Bonds. "Series 2002 Bonds" means the Water System Mortgage Revenue Bonds, Series 2002, dated April 1, 2002, issued in the original principal amount of $3,820,000, of which no aggregate principal amount remains outstanding. "Series 2003 Bonds" means the Water System Mortgage Revenue Refunding Bonds, Series 2003, dated October 15, 2003, issued in the original principal amount of $9,155,000, of which no aggregate principal amount remains outstanding. "Series 2007 Bonds" means the Issuer's Water System Mortgage Revenue Bonds, Series 2007, dated October 17, 2007, issued in the original principal amount of $21,335,000, of which no aggregate principal amount remains outstanding.

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"Series 2016 Bonds" means the Issuer's Water System Mortgage Revenue Refunding Bonds, Series 2016, dated June 15, 2016, issued in the original principal amount of $19,560,000, of which $16,530,000 in aggregate principal amount remains outstanding.

"Series 2020 Bonds" means the Issuer's Water System Mortgage Revenue Bonds, Series 2020, in the aggregate principal amount of $40,465,000, authorized by the Bond Legislation for the Series 2020 Bonds. "Sixth Supplemental Indenture" means the Sixth Supplemental Indenture of Mortgage dated as of May 20, 2020, between the Issuer and the Trustee, that amends and supplements the Original Indenture, First Supplemental Indenture, Second Supplemental Indenture, Third Supplemental Indenture, Fourth Supplemental Indenture and Fifth Supplemental Indenture, and secures the Series 2020 Bonds.

"Special Funds" means the Bond Fund, the Bond Reserve Fund, the Construction Fund, the Replacement and Improvement Fund, and the Water System Reserve Fund. "Third Supplemental Indenture" means the Third Supplemental Indenture of Mortgage dated as of November 1, 2003, between the Issuer and the Trustee, that amends and supplements the Original Indenture, the First Supplemental Indenture, and the Second Supplemental Indenture, that secured the Series 2003 Bonds. "Trustee" means The Huntington National Bank, Cincinnati, Ohio, and its successors and any corporation or association resulting from or surviving any consolidation or merger to which it or its successors may be a party and any successor trustee at the time serving as successor trustee under the Indenture. "Utility" means the Issuer's municipal water system of the Issuer, now or hereafter owned or operated by the Issuer as a public utility, and includes any extensions, modifications, enlargements or additions thereto.

"Water System Reserve Fund" or "City of Marysville, Ohio – Water System Reserve Fund" means the fund of that name created under the Original Indenture.

Creation of Funds

The Indenture and the Bond Legislation establish the following Funds:

(a) the Construction Fund designated the "City of Marysville, Ohio – Water System Construction Fund;"

(b) the Revenue Fund designated the "City of Marysville, Ohio – Water System Revenue

Fund;" (c) the Bond Fund designated the "City of Marysville, Ohio – Water System Bond Fund;" (d) the Bond Reserve Fund designated the "City of Marysville, Ohio – Water System Bond

Reserve Fund;" (e) the Replacement and Improvement Fund designated the "City of Marysville, Ohio – Water

System Replacement and Improvement Fund;"

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(f) the Water System Reserve Fund designated the "City of Marysville, Ohio – Water System Reserve Fund;" and

(g) the Rebate Fund designated "City of Marysville, Ohio – Water System Revenue Bonds Rebate Fund."

Application of Proceeds and Funds The proceeds of sale of the Series 2020 Bonds will be allocated and deposited as follows:

(a) $40,460,176.80, to the City of Marysville, Ohio – Water System Construction Fund, as the amount necessary to finance certain costs associated with the Project;

(b) $495,042.79, to the City of Marysville, Ohio – Water System Bond Fund; (c) $252,707.50, to be retained by the Original Purchaser, as its compensation in connection

with the sale and underwriting of the Series 2020 Bonds; (d) $433,958.75, to be wired by the Original Purchaser to the Trustee to pay certain costs of

issuance of the Series 2020 Bonds; (e) $141,964.13, to be wired to BAM as payment for the Municipal Bond Insurance Policy;

and

(f) $61,593.68, to be wired to BAM as payment for the Bond Reserve Fund Facility. As set forth above, the Underwriter has agreed to wire funds to the Trustee at closing for further

distribution by the Trustee to pay certain costs of issuance of the Series 2020 Bonds on behalf of the City, including rating fees, legal fees, Trustee fees, printing and distribution costs, and other miscellaneous expenses.

The Special Funds will be maintained in the custody of the Issuer or the Trustee, as provided in the Indenture or in the Bond Legislation, as a separate account (except when invested in Eligible Investments). The Trustee may establish in the Bond Fund, the Bond Reserve Fund and the Rebate Fund such additional accounts and subaccounts as it determines necessary in order to permit it to maintain appropriate records for accounting and federal income tax compliance purposes.

The Construction Fund will be maintained in the custody of the Issuer as a trust fund and will be used for the purposes and in accordance with the provisions of the Indenture. If the unexpended proceeds of a prior Series of Bonds remain in the Construction Fund upon the issuance of any Additional Bonds, the Issuer will establish a separate subaccount within the Construction Fund, for accounting purposes, for the deposit of the proceeds of the issue of Additional Bonds in accordance with the Indenture.

The Revenue Fund will be maintained in the custody of the Issuer as a trust fund separate and

distinct from all other funds of the Issuer. So long as any of the Bonds are Outstanding, all Revenues will be deposited in the Revenue Fund. The funds on deposit in the Revenue Fund will be allocated as provided in the Indenture.

The Bond Fund and the Bond Reserve Fund will be maintained in the custody of the Trustee as trust funds and will be used solely for the payment of Bond Service Charges on the Bonds, and to the extent

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provided in the Indenture, for the purchase for cancellation or redemption of Bonds. If at any time, upon the Issuer's request and if the Trustee will have moneys and investments then on deposit in the Bond Fund and Bond Reserve Fund sufficient to purchase for cancellation or redeem on the next available redemption date any Outstanding Bonds, without thereby reducing the balance thereafter remaining in the Bond Fund and Bond Reserve Fund below the amount which on such redemption date would be required by the Indenture to be on hand therein with respect to Bonds not to be so redeemed, the Trustee will cause such moneys to be used out of the Bond Fund and Bond Reserve Fund in the amounts required, together with any other moneys provided by the Issuer, to accomplish such purchase or redemption.

The Bond Reserve Fund will be funded with cash of the Issuer, proceeds from the Bonds, a Bond Reserve Fund Facility, or any combination thereof, in an aggregate amount equal to the Bond Reserve Requirement. In the event that the balance in the Bond Reserve Fund falls below the Bond Reserve Requirement at any time which the Bonds are outstanding, the Issuer will immediately deposit with the Trustee from Revenues, for credit to the Bond Reserve Fund, an amount equal to cover such deficiency. The Trustee will review and value at fair market value the Eligible Investments on deposit in the Bond Reserve Fund on the first day of each January, April, July and October, and deliver a written notice of such evaluation to the Issuer. When the amount on deposit in the Bond Reserve Fund on any quarterly valuation date is in excess of the Bond Reserve Requirement, the Trustee will transfer the excess to the Interest Payment Account of the Bond Fund. When the amount on deposit in the Bond Reserve Fund is at least equal to the principal amount of the Bonds, the Trustee will transfer from the Bond Reserve Fund to the Bond Fund an amount equal to the principal of such bonds due and payable on their maturity date or the next succeeding bond retirement date, as the case may be. Those moneys will be used to pay the principal of such Bonds due on such date. The reduction in the Bond Reserve Fund resulting from that transfer need not be restored.

The Replacement and Improvement Fund will be maintained in the custody of the Issuer as a trust

fund separate and distinct from all other funds of the Issuer. The moneys held in the Replacement and Improvement Fund will, to the extent necessary from time to time, after applying to that purpose any moneys then in the Water System Reserve Fund, be transferred to the Bond Fund to permit the payment of all obligations payable from the Bond Fund without drawing on the Bond Reserve Fund and, otherwise, at the written request of the Issuer (to be delivered to the Trustee) signed by the Fiscal Officer or Executive Officer, will be used by the Issuer solely to replace obsolete or worn-out equipment or to make improvements, or, with funds in the Bond Fund and Bond Reserve Fund and other funds made available by the Issuer, to retire by purchase or by call in accordance with applicable redemption provisions in the Indenture, all or part of the Bonds from time to time Outstanding. If the amount in the Bond Fund is insufficient to permit payment of all obligations payable from the Bond Fund on any Interest Payment Date, the Trustee, in accordance with the Indenture, may direct the Issuer to apply to that purpose moneys held in the Replacement and Improvement Fund. The Issuer may from time to time deposit to the Replacement and Improvement Fund amounts in excess of the amounts required by the Indenture. The Water System Reserve Fund will be maintained in the custody of the Issuer as a trust fund separate and distinct from all other funds of the Issuer. The moneys held in the Water System Reserve Fund will, to the extent necessary from time to time, upon the Issuer's request and if the Trustee will have sufficient funds available for such purpose, be transferred to the Bond Fund to permit the payment of all obligations payable from the Bond Fund without drawing upon the Replacement and Improvement Fund or Bond Reserve Fund, may be transferred to the appropriate fund of the Issuer to permit the payment of principal of and interest on any unvoted general obligation bonds, or notes issued in anticipation thereof, issued by the Issuer to pay costs of Improvements, or may be transferred to the Revenue Fund and otherwise

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may be used for any other lawful Utility purpose, including without limitation, the retirement of outstanding Bonds, by call for redemption or by purchase for cancellation. Application of Revenues

The Revenue Fund will be maintained in the custody of the Issuer and invested only in Eligible Investments. Except as otherwise provided in Indenture only the following payments will be made out of the Revenue Fund and in the following order:

First: For Operating and Maintenance Expenses, as and when payable. Second: Not later than the last Business Day of each month, to the Trustee (a) for deposit

into the Bond Fund, an amount equal to 1/12 of the principal amount of Bonds maturing or subject to mandatory sinking fund redemption on the next succeeding Principal Payment Date, and (b) for deposit into the Bond Fund, an amount equal to the sum of (1) 1/6 of the amount of interest payable on or before the next succeeding Interest Payment Date on Bonds the interest on which is paid semi-annually, and (2) the amount of interest payable during the next succeeding month on Bonds the interest on which is paid more frequently than semi-annually; provided, however, that payments to the Bond Fund with respect to any Series of Additional Bonds for any period may be made from Capitalized Interest for such Series of Bonds to the extent provided for in the Bond Legislation for such Series of Bonds.

Third: Not later than the fifth Business Day after each Interest Payment Date to the

Trustee for deposit into the Bond Reserve Fund, the amount, if any, necessary to restore the balance in the Bond Reserve Fund to the Bond Reserve Requirement.

For purposes of determining the Bond Reserve Requirement with respect to, and the amount required to be paid on each deposit date into the Bond Reserve Fund for, Additional Bonds constituting interim indebtedness, principal (including Mandatory Sinking Fund Redemption Requirements) and interest requirements payable on such Additional Bonds will be deemed to be those amounts that equal the principal (including Mandatory Sinking Fund Redemption Requirements) and interest payments that would be required for an issue of long term bonds in the same principal amount bearing interest at a rate equal to 90% of the revenue bond index.

Notwithstanding the foregoing provisions, in lieu of any required deposits of cash or Eligible Investments into the Bond Reserve Fund or in substitution for any cash or Eligible Investments on deposit in the Bond Reserve Fund, the Issuer may cause to be deposited into the Bond Reserve Fund a Bond Reserve Fund Facility, provided that: (i) if the Bonds are outstanding and a municipal bond insurance policy is in full force and effect, the use of any such instrument, including its form and substance and the issuer thereof, will be approved in writing by the applicable bond insurer, which approval will not be withheld unreasonably and the reasonableness of which is to be determined by reference to the general requirements then imposed by the bond insurer as approved by rating services for the maintenance of any then current ratings of the Bonds, (ii) the following criteria will be satisfied: (A) the rating category assigned by a rating service to the long-term unsecured debt or claims paying ability or other credit standing of the

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Bond Reserve Fund Facility Provider is not less than one rating category lower than the highest long-term rating assigned by that rating service to any Bonds and is not less than "A," (B) the Bond Reserve Fund Facility has a term of at least one year, (C) at least 31 days prior to the expiration of the Bond Reserve Fund Facility, the Issuer will fully fund the Bond Reserve Fund or deliver to the Trustee a substitute Bond Reserve Fund Facility, as provided below, and (D) if any Bonds outstanding from time to time are rated and if the rating assigned by a rating service to the Bond Reserve Fund Facility Provider falls more than one rating category below the highest rating assigned by that rating service to any Bonds, the Issuer, within 12 months after the rating falls, will either fully fund the Bond Reserve Fund or deliver to the Trustee a substitute Bond Reserve Fund Facility satisfying the requirement of clause (A) above, and (iii) there will be delivered to the Trustee an opinion of nationally recognized bond counsel to the effect that such action, and the proposed use of any money released from the Bond Reserve Fund as a result of such action will not adversely affect the exclusion from gross income of interest on any Bonds for federal income tax purposes. In the event that such a Bond Reserve Fund Facility is delivered to the Trustee and will expire before the Bond Reserve Fund will be released in accordance with the terms hereof, the replacement therefor, whether in the form of cash, Eligible Investments, or a Bond Reserve Fund Facility, will be delivered to the Trustee and, if applicable, be effective at least 31 days before the stated expiration of the prior Bond Reserve Fund Facility, in which case the prior Bond Reserve Fund Facility will immediately thereupon be canceled and returned to the issuing financial institution. Any amounts in excess of the Bond Reserve Requirement created by virtue of a deposit of a Bond Reserve Fund Facility into the Bond Reserve Fund will be transferred to the Bond Fund in accordance with the paragraph below.

Fourth: Not later than the last Business Day of each month, to the Issuer for deposit into

the Replacement and Improvement Fund, the sum of $10,000 or such lesser sum as may then be required to create and thereafter maintain a balance in the Replacement and Improvement Fund at least equal to the Replacement and Improvement Fund Requirement.

Fifth: On the first Business Day of each month, to the Trustee such sums in addition to

any of the foregoing allocations as may be necessary and available, after meeting the requirements of the preceding Second, Third and Fourth Paragraphs to make up any previous deficiency in any such monthly allocation.

Sixth: As and when due, such sums as are required to pay principal of and interest on

other indebtedness of the Issuer incurred for Utility purposes. Seventh: On or before January 31 of each year, the balance then remaining in the Revenue

Fund as of December 31 of the previous calendar year, after reserving therein an amount which, in the opinion of the Fiscal Officer, is sufficient to maintain adequate working capital, will be transferred to the Water System Reserve Fund; provided that the amount reserved for working capital will not be less than one fourth (1/4) of the aggregate amount of Operating and Maintenance Expenses for the immediately preceding Fiscal Year.

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Covenants of the City

The Issuer covenants, but without pledging its credit or taxing power and only out of the Net Revenues, to make such payments into the Special Funds as are required by the Indenture and pay the Bond Service Charges on the dates and at the places and in the manner mentioned in the Bonds according to the true intent and meaning thereof.

Anything in the Indenture, the Bond Legislation or the Bonds to the contrary notwithstanding, neither the general resources of the Issuer will be required to be used for, nor will the general credit of the Issuer be pledged to, the performance of any duty under the Indenture, the Bond Legislation or the Bonds, but any payment to be made under the Indenture, the Bond Legislation or the Bonds will be made only from the Revenues and the Special Funds to the extent provided in the Bond Legislation and the Indenture; provided, however, that if otherwise lawful, nothing in the Indenture will be deemed to prohibit the Issuer from using, of its own volition, any of its general resources for the fulfillment of any of the terms and conditions of the Indenture, the Bond Legislation or the Bonds. Production of Adequate Revenues

To provide for the payment of the Bond Service Charges on the Bonds as the same will become due and payable, the Issuer covenants at all times to prescribe, charge and collect such rates for the services, and to restrict the Operating and Maintenance Expenses, of the Utility as will result in Net Revenues at least adequate to provide for (i) the payments required by the Indenture to be made into the Bond Fund, the Bond Reserve Fund and the Replacement and Improvement Fund, (ii) the payment of debt service on any other obligation of the Issuer incurred for Utility purposes, (iii) the payment of the fees and expenses of the Trustee, the Authenticating Agent, the Paying Agent, the Bond Registrar and any Person providing credit enhancement for any Series of Bonds, and (iv) sufficient coverage to permit the issuance of Additional Bonds required for the construction of necessary or advisable extensions or improvements of the Utility. In no event will the Net Revenues for any Fiscal Year, be less than 110% of the aggregate amount of Bond Service Charges payable during such Fiscal Year; provided that the failure in any Fiscal Year to meet such test will not constitute a basis for the declaration of an Event of Default under the Indenture unless such test is not met for two consecutive Fiscal Years. In the event of such a failure, however, the Issuer will notify the Trustee and will immediately employ an Independent Engineer knowledgeable in the operation of municipal water systems and rate studies applicable thereto, and having a good repute for skill and experience in such work, to prepare and submit, within 120 days following the close of such fiscal year, a written report and recommendations with respect to the rates and charges of the Utility and with respect to improvements or changes in the operations of the Utility, stating also the extent to which prior recommendations of consultants or engineers may not have been complied with by the Issuer. A copy of such report and recommendations will be filed with the Issuer, the Trustee, the Original Purchaser and any Bondholders requesting the same. The Issuer will, within 90 days after receipt of such report, revise its rates and charges in conformity with such recommendations and otherwise follow such recommendations, and the failure to do so will constitute the basis for a declaration of an Event of Default under the Indenture. Operation and Maintenance

The Issuer will operate the Utility under the provisions of the Constitution of Ohio, laws and applicable regulations of the United States of America, the State of Ohio, and other governmental agencies having jurisdiction thereover, and will efficiently maintain and carry on the operations and business of the Utility and will keep the Utility in good condition, repair and working order, replacing any part or parts thereof which may become worn out or injured by other suitable property of at least equal value and efficiency. Nothing in the Indenture however, will be held to prevent the Issuer from discontinuing the use and operation of any property or equipment forming a non-essential part of the Utility if it is no longer

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profitable to use and operate such property or equipment. Any monies received from such dispositions or discontinuations will be credited to the Revenue Fund. Title to Utility

Except as otherwise provided in the Indenture and except for Permitted Encumbrances, the Issuer covenants that it has good and marketable title in fee simple to the real property comprising the Utility Site which it purports to hold in fee simple, free and clear of liens and encumbrances other than Permitted Encumbrances, good and marketable leasehold title to that portion of the Utility Site in which the Issuer holds a leasehold estate, sufficient other interests in real property to permit the Utility to carry out the intended use of the property so held as to interests owned or held in other than fee simple or leasehold and good right, full power, and lawful authority to grant, bargain, sell, assign, transfer, convey, pledge, set-over, quit-claim, release and mortgage that title to the Trustee in the manner intended in the Indenture. Except as otherwise provided in the Indenture, the Issuer covenants that it has and will preserve good and indefeasible title to all personal property now or hereafter included in the Mortgaged Properties and will warrant and defend the same to the Trustee and its successors and assigns against the claims of all persons and parties whomsoever. Compliance with Requirements of Law

The Issuer covenants to comply with all laws, rules and orders of any governmental body or officers exercising any power of regulation or supervision over it or any part of the Utility and to make any repairs to the Utility or any part thereof that may be required by any such rule or regulation, provided, however, that the Issuer will have the right in good faith to contest the validity of any such law, rule or order in any reasonable manner and to delay or refuse to comply therewith if such contest will not affect the conduct of the business of the Utility or the maintenance of the physical condition of the Utility in a manner which will permit the Issuer to comply with its covenants under the Indenture. Books of Record and Account; Financial Reports

The Issuer covenants to separately account for the Revenues and keep proper books of record and account (separate and distinct from all other records and accounts of the Issuer) in such manner as is required by the Bond Legislation and is necessary to show the complete financial results of operation of the Utility and all capital expenditures for replacements or betterments of the Utility, the Operating and Maintenance Expenses, and amounts deposited in the Special Funds. The Issuer will promptly notify the Trustee of the filing by the Issuer of a petition in bankruptcy or any similar insolvency proceedings pursuant to the Federal Bankruptcy Code or any state law.

The Issuer covenants to furnish to the Trustee and the Original Purchaser an annual financial report with respect to the Utility in such form, containing such information and within such time period as is required by the laws of the State of Ohio. Insurance

The Issuer covenants to insure and at all times keep insured, at its own expense, or cause to be insured, but solely from the Revenues, the property and equipment from time to time comprising the Utility, which are of an insurable nature and of the character usually insured by private companies operating similar properties and businesses, for the full insurable value thereof (except that such insurable value will not be deemed to include any value for which any contractor engaged in constructing improvements to the Utility will be liable under his contract), with a responsible insurance company or companies against loss or damage by fire, tornado, lightning, vandalism and other causes covered by standard "extended coverage"

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or "all risks" policies by such private companies. The Issuer will also carry or cause to be carried general liability insurance with a responsible insurance company or companies in amounts of not less than $1,000,000 resulting from any one occurrence in connection with the Utility and not less than $1,000,000 with respect to property damage in connection with the Utility, provided that the Issuer may include aggregate deductibles or self-insurance retention of $25,000 in any one year in such policies. Such insurance may include personal indemnity bonds for officers or employees of the Issuer in an amount commensurate with industry standards. The Issuer also will procure such workers' compensation insurance as may be required by the laws of the State.

The Issuer covenants to apply all proceeds received from policies of property and casualty insurance required hereunder to the payment of costs related to rebuilding, restoring, replacing, or otherwise curing the damage or loss giving rise to such proceeds, unless otherwise approved by the Trustee.

If at any time it will be unlawful to carry such insurance or if at any time the Issuer will be unable to obtain such insurance for the risks covered thereby, it will not constitute an Event of Default under the provisions of the Indenture if the Issuer will carry or cause to be carried such insurance through Qualified Self Insurance, as defined below, provided that the requirements set forth in the Indenture are satisfied. Events of Default

Each of the following events is an Event of Default under the Indenture:

(a) Failure by the Issuer to pay the Bond Service Charges on any Bond, when and as the same will have become due and payable, whether at maturity, by acceleration or upon call for redemption; or

(b) Failure by the Issuer to make the deposits, when due, into the Bond Fund required to be

made pursuant to the Indenture, and the continuance thereof for three (3) Business Days; (c) Failure to perform or observe duly or punctually any other covenant, condition or

agreement contained in the Bonds, in the Bond Legislation or in the Indenture or any supplemental indenture and to be performed by the Issuer, which failure will have continued for a period of sixty (60) days after written notice specifying such failure and requiring the same to be remedied has been given to the Issuer by the Trustee, which may give such notice in its discretion and will give such notice at the written request of the holders of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding;

(d) The Issuer will (i) commence a proceeding under any federal bankruptcy, insolvency,

reorganization or similar law or (ii) have a receiver or trustee appointed for it or for the whole or any substantial part of its property.

Notwithstanding the foregoing, if, by reason of Force Majeure, the Issuer is unable to observe or perform any covenant, agreement or obligation which would give rise to an Event of Default under the Indenture, the Issuer will not be deemed in default during the continuance of such inability. However, the Issuer will promptly give notice to the Trustee of the existence of an event of Force Majeure and must use its best efforts to remove the effects thereof; provided that the settlement of strikes or other such disturbances are entirely within its discretion.

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Acceleration

Upon the occurrence of an Event of Default, the Trustee may declare, and upon the written request of the holders of not less than 25% in aggregate principal amount of the Bonds then outstanding the Trustee will declare, by notice in writing delivered to the Issuer, the principal of all the Bonds then outstanding (if not then due and payable), and the interest accrued thereon, to be due and payable immediately. Upon that declaration, that principal and interest will become and be immediately due and payable. Interest on the Bonds will accrue to the date determined by the Trustee for the tender of payment to the holders pursuant to that declaration; provided, that interest on any unpaid principal of Bonds outstanding will continue to accrue from the date determined by the Trustee for the tender of payment to the holders of those Bonds. Rescinding of Declaration

The acceleration provisions of the Indenture are subject to the condition that if, at any time after the principal of the Bonds will have been so declared due and payable and prior to the first to occur of (a) the entry of a judgment in a court of law or equity for enforcement hereunder and (b) the appointment, and the confirmation thereof, of a receiver after the opportunity for hearing by the Issuer, all sums payable hereunder except the principal of the Bonds which have not reached their maturity dates or been called for earlier prior redemption will have been duly paid and all existing defaults will have been cured, then and in every such case such payment will constitute a waiver of such default and its consequences and an automatic rescission and annulment of such declaration, and if the Issuer has transferred custody of any Special Funds to the Trustee, in accordance with a direction to do so given by the Trustee to the Issuer pursuant to Section 604 of the Indenture, the Trustee immediately will return custody of such Special Funds to the Issuer upon receipt of a written request from the Issuer to do so; but such waiver will not extend to or affect any subsequent default or impair any rights consequent thereon. Foreclosure Sale of Mortgaged Properties

In the event of any sale pursuant to the provisions of the Indenture under or by virtue of a judgment or decree of foreclosure and sale, or otherwise, the Mortgaged Properties will be sold as an entirety, or substantially as an entirety, unless the court ordering such sale will otherwise direct. The Issuer, for itself and all who may claim through or under it, waives any and all right to have the Mortgaged Properties marshaled upon any foreclosure of the lien hereof and hereby agrees that any court having jurisdiction to foreclose that lien may sell the Mortgaged Properties substantially as an entirety. Moneys or security held in any Special Fund or the Revenue Fund will be applied to the payment of the Outstanding Bonds and interest thereon, subject to and in accordance with the procedure specified in the Indenture for application of proceeds of the foreclosure sale.

The Trustee may cause to be adjourned from time to time any sale by announcement at the time and place appointed for sale or for adjourned sale or sales; and except as otherwise provided by law, that sale may be made, without further notice or publication, at the time and place to which that sale will be so adjourned.

Upon the completion of that sale, the Trustee will, if requested by the purchaser, execute and deliver to the purchaser a quitclaim deed or deeds and other instruments conveying, assigning and transferring all its estate, right, title and interest in and to the property sold, and the Issuer will also execute and deliver to the purchaser all necessary quitclaim deeds and instruments as may be advisable in the judgment of, and as may be requested by, the Trustee for the purpose of confirming that sale.

Any sale will operate to divest all the estate, right, title, interest, claim and demand whatsoever, whether at law or in equity, of the Issuer and the Trustee in and to the property so sold, and will be a

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perpetual bar both at law and in equity against the Issuer and the Trustee and all persons or parties claiming or who may claim that property, or any part thereof, from, through or under the Issuer.

Upon the completion of any sale, the purchaser will be entitled to operate the Utility under the terms and conditions of the franchise set out in the Bond Legislation for the Bonds. Other Default Provisions

The Trustee, upon the written request of the holders of a majority in principal amount of the Bonds at the time Outstanding and provided that all fees and expenses of the Trustee have been paid, will waive any Event of Default and its consequences, except an Event of Default arising from a default in the payment of the principal of any Bond at the date of maturity specified therein; provided, however, that an Event of Default arising from a default in the payment of interest on the Bonds will not be waived unless, prior to such waiver, all arrears of interest will have been paid or, as to such interest, will have been provided for by payment into the appropriate Special Fund of a sum sufficient to pay the same. In case of any such waiver, or in case any proceeding taken on account of any such default will have been discontinued or abandoned or determined adversely to the Trustee, then in every such case, the Issuer, the Trustee and the holders of the Bonds will be restored to their former positions and rights hereunder respectively, and all rights, remedies, powers and duties of the Trustee will continue as though no such proceedings had been taken. Remedial Action by Bondholders

In order to promote and protect the equal and ratable rights of every holder of the Bonds, and to avoid multiplicity of suits, no holder of any Bond will be entitled to institute any suit, action or proceeding at law or in equity to enforce any rights or remedies granted by the Indenture unless:

(a) Such holder will have previously given to the Trustee written notice of an Event of Default as hereinbefore provided; and

(b) The holders of at least 25% in principal amount of the Bonds then Outstanding, in

accordance with the provisions of the Indenture will have made written request upon the Trustee, and will have afforded to it a reasonable opportunity to institute such action, suit or proceeding in its own name; and

(c) The Trustee will have been offered security and indemnity satisfactory to it against the

costs, expenses and liabilities to be incurred by compliance with such requests; and (d) The Trustee, for sixty (60) days after receipt of such notification, request and offer of

indemnity, will not have instituted any such action, suit or proceeding; and (e) The Indenture authorizes the Trustee to institute the action, suit or proceeding requested by

the Bondholders.

Such notification, request and offer of indemnity are hereby declared, in every case, at the option of the Trustee, to be conditions precedent to any action or cause of action for the enforcement of any remedy hereunder; it being understood and intended that no one or more holders of Bonds will have any right in any manner whatsoever by his or their action to affect, disturb or prejudice the lien of the Indenture or to enforce any right hereunder except in the manner provided, and that all proceedings at law or in equity will be instituted, had and maintained in the manner provided in the Indenture and for the equal and ratable benefit of all holders of the Outstanding Bonds.

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Nothing contained in the Indenture or in the Bonds, however, will affect the right of any Bondholder

to enforce the payment of principal of and interest on any Bond at and after the maturity thereof without reference to or consent of either the Trustee or the holder of any other Bond. Supplemental Indentures Not Requiring Consent of Bondholders

The Issuer and the Trustee may, without the consent of, or notice to, any of the holders of the Bonds, enter into indentures supplemental to the Indenture as will not be inconsistent with the terms and provisions hereof for any one of the following purposes:

(a) To cure any ambiguity, inconsistency or formal defect or omission in the Indenture; (b) To grant to or confer upon the Trustee for the benefit of the holders of the Bonds any

additional rights, remedies, powers, or authority that may lawfully be granted to or conferred upon the holders of the Bonds or the Trustee or either of them;

(c) To subject to the lien and pledge of the Indenture additional revenues; (d) To add to the covenants and agreements of the Issuer contained in the Indenture other

covenants and agreements thereafter to be observed for the protection of the holders of the Bonds, or to surrender or limit any right, power or authority herein reserved to or conferred upon the Issuer, including the limitation of rights of redemption so that in certain instances Bonds of different Series will be redeemed in some prescribed ratio to one another;

(e) To evidence any succession to the Issuer and the assumption by such successor of the

covenants and agreements of the Issuer herein and in the Bonds contained; (f) In connection with the issuance of Additional Bonds; (g) In connection with any other change which in the judgment of the Trustee is not to the

prejudice of the Trustee or the Bondholders; (h) To effect a book entry registration system for any Series of Bonds or to cause any such

system to be discontinued and certificated Bonds to be issued therefor; (i) To permit compliance with changes in federal tax laws; (j) To permit the exchange of any Series of Bonds initially issued only in fully registered form,

at the option of the holders, for coupon Bonds of such Series payable to bearer, in an aggregate principal amount not exceeding the unmatured and unredeemed principal amount of the predecessor Bonds, bearing interest at the same rate and maturing on the same date, with coupons attached representing all unpaid interest due or to become due thereon, if in the opinion of nationally recognized bond counsel selected by the Issuer that exchange would not result in the interest on any of Series of Bonds outstanding becoming subject to federal income taxation.

Supplemental Indentures Requiring Consent of Bondholders

Exclusive of supplemental indentures entered into pursuant to the preceding section, the Issuer, by appropriate legislation and with the consent of the holders of a majority in principal amount of the Bonds

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at the time Outstanding, given as provided in the Indenture, and such other consent or consents as are required by the terms of the Bonds or Bond Legislation, may modify or amend any covenant, condition or provision of the Indenture or any supplemental indenture; provided, however, that no such modification or amendment will permit or effect a change in the redemption or purchase provisions or in the maturity of principal of any Bond or of any installment of interest thereon or reduction in the amount of principal thereof or the rate of interest thereon or reduce the amount or extend the time of any sinking fund payment without the consent of the holder of such Bond, or will change or modify any of the rights or obligations of the Trustee without its written consent thereto, or, without the consent of holders of all Bonds Outstanding, will permit the imposition upon the Net Revenues or the Special Funds of a lien ranking prior to or equal with the applicable lien of the Indenture, or any supplemental indenture, or create a preference or priority of any Bond over any other Bond, or reduce the percentage of the principal amount of Bonds the consent of which is required to effect a modification or amendment of the provisions of the Indenture or any supplemental indenture. Modification by Unanimous Action

Notwithstanding anything contained in the foregoing provisions of Section 1103 of the Original Indenture, the rights and obligations of the Issuer and of the holders of the Bonds, and the terms and provisions of the Bonds and the Indenture or any supplemental indenture, may be modified or altered, in any respect with the consent of (i) the Issuer, (ii) the Trustee, and (iii) the holders of all of the Bonds then Outstanding, provided, however, that before any such modification, amendment, alteration or change will be effective there will have been delivered to the Trustee an opinion of bond counsel to the effect that such modification, amendment, alteration or change will not adversely affect the exclusion of interest on any Bonds from the gross income of Bondholders thereof for federal income tax purposes. Issuance of Additional Bonds

If no Event of Default has occurred and is continuing, the Issuer may, to the extent permitted by law in effect at the time thereof, and provided such issuance does not adversely affect the tax exempt status of any Outstanding Bonds, issue Additional Bonds from time to time for the purpose of (i) refunding, in advance or otherwise, any one or more Series of Bonds or other indebtedness of the Issuer incurred for Utility purposes, (ii) making replacements, extensions or improvements to the Utility, or (iii) any combination of the foregoing purposes. Additional Bonds of any Series will be equally and ratably secured by the Net Revenues and the Special Funds with the Series 2016 Bonds, the Series 2020 Bonds and each other Series of Additional Bonds; provided, however, that nothing herein will prevent payment of Bond Service Charges on a Series of Additional Bonds from (i) being otherwise secured and payable from sources or by property or instruments not applicable to the Series 2016 Bonds, the Series 2020 Bonds, or any one or more Series of Additional Bonds or (ii) not being secured or protected from sources or by property or instruments applicable to the Series 2016 Bonds, the Series 2020 Bonds, or one or more Series of Additional Bonds. Before any Additional Bonds are authenticated there will be delivered to the Trustee the following items:

(a) If the Additional Bonds are issued to finance replacements, extensions or improvements to the Utility, a certificate of an Independent Engineer (i) stating that in the opinion of such Independent Engineer, the replacements, extensions or improvements are reasonably necessary for the proper and economical operation of the Utility or for meeting existing or prospective demands for its services or both; and (ii) setting forth such Independent Engineer's estimate of the additional Net Revenues, if any, that will result from such replacements, extensions or improvements to the Utility for the first full Fiscal Year after completion of such replacements, extensions or improvements, which estimate will be based upon rates in effect at the time of such estimate, but such estimates will not be based

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on projected increases in the number of customers of the Utility (except for increases in the number of customers attributable to the acquisition of any additional water system, or the acquisition of customers from any such water system, by the Issuer); and

(b) A certificate of an Independent Engineer stating that in his or her opinion the Net Revenues

for the twelve calendar months immediately preceding the passage of the Bond Legislation authorizing such Additional Bonds, as adjusted to reflect rates in effect at the time of adoption of such Bond Legislation and the additional Net Revenues, if any, as set forth in the certificate of the Independent Engineer provided for in paragraph (a) above, equals or exceeds (i) 110% of the sum reasonably estimated as being the largest amount which will be required in any subsequent twelve month period to pay Bond Service Charges of all Bonds to be Outstanding Bonds immediately after the issuance of such Additional Bonds plus (ii) 100% of the sum reasonably estimated as being the largest amount which will be required in any subsequent twelve month period to pay principal and interest payable with respect to all other indebtedness of the Issuer (including without limitation general obligation bonds or notes, provided that in the case of notes, it will be assumed that the notes are converted to bonds bearing interest at the rate of seven percent (7.0%) per annum and amortizing over 25 years with level debt service) which the Issuer intends to pay from Net Revenues; and

(c) In the case of Additional Bonds to be issued for the purpose of refunding any Outstanding

Bonds or other indebtedness of the Issuer incurred for Utility purposes, evidence satisfactory to the Trustee that provision has been made to assure that moneys sufficient to retire the Bonds or such other indebtedness to be refunded will be available in the possession of the Trustee or in the Issuer's bond retirement fund at the time provided for retirement thereof under the plan for refunding and are committed to such purpose.

In making the calculation for purposes of the certificate of the Independent Engineer provided for

in paragraph (b) above: (i) in the case of issuance of Additional Bonds for refunding any Outstanding Bonds or other indebtedness of the Issuer issued for Utility purposes, payments on account of interest and principal maturities of such Additional Bonds will be used in lieu of and to the exclusion of such payments on account of interest and principal maturities of the Bonds or other indebtedness being refunded thereby; (ii) if any variable rate Series of Bonds are outstanding immediately prior to the issuance of such Additional Bonds, an interest rate equal to the greater of 6.5% per annum or the average interest rate actually borne by such Series of Bonds during the twelve (12) month period (or, if shorter, the period during which such Bonds were Outstanding) ended the end of the month next preceding the month in which such Series of Additional Bonds are to be issued will be used (provided that if such variable rate Bonds are convertible to a fixed rate, the fixed rate applicable upon conversion will be used) for estimating the interest requirements for such variable rate Series of Bonds; (iii) for purposes of estimating the payments of Bond Service Charges on any Series of Additional Bonds required to be made following the issuance thereof (A) if such Series of Additional Bonds will bear interest at a variable rate, an interest rate for such Series of Additional Bonds equal to the greater of 6.5% per annum or the average interest rate actually borne during the twelve (12) month period (or, if shorter, the period during which any variable rate Bonds were outstanding) ended the end of the month next preceding the month in which such Series of Additional Bonds are to be issued by all variable rate Series of Bonds Outstanding at the time of issuance of such Series of Additional Bonds will be used (provided that if such variable rate Bonds are convertible to a fixed rate, the fixed rate applicable upon conversion will be used) for estimating the interest requirements for such Series of Additional Bonds, (B) if such Series of Additional Bonds has a final stated maturity of three years or less, a level annual debt service based upon an interest rate determined as set forth in clause (A) of this paragraph and a final maturity of 25 years will be used; and (iv) any variable rate Series of Bonds having an interest

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reset period of more than one year will not be considered to be a variable rate Series of Bonds Outstanding for purposes of clause (iii) of this paragraph.

To the extent permitted by law, the Issuer may issue other obligations secured by a security interest

in the Net Revenues subordinate to that of the Bonds; provided, however, that the Fiscal Officer will certify to the Trustee, prior to the issuance of any such subordinate obligations, that Net Revenues are projected to be adequate to meet all requirements of the Indenture as well as pay all debt service on such subordinate obligations.


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APPENDIX C

AUDITED FINANCIAL STATEMENTS

CITY OF MARYSVILLE, OHIO

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018



Single Audit Reports

December 31, 2018

PLATTENBURG Certified Public Accountants

Efficient Effective Transparent

Honorable Mayor and City Council City of Marysville 209 S. Main Street Marysville, Ohio 43040 We have reviewed the Independent Auditor’s Report of the City of Marysville, Union County, prepared by Plattenburg & Associates, Inc., for the audit period January 1, 2018 through December 31, 2018. Based upon this review, we have accepted these reports in lieu of the audit required by Section 117.11, Revised Code. The Auditor of State did not audit the accompanying financial statements and, accordingly, we are unable to express, and do not express an opinion on them. Our review was made in reference to the applicable sections of legislative criteria, as reflected by the Ohio Constitution, and the Revised Code, policies, procedures and guidelines of the Auditor of State, regulations and grant requirements. The City of Marysville is responsible for compliance with these laws and regulations. Keith Faber Auditor of State Columbus, Ohio July 18, 2019

rakelly

Faber

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Federal Grantor/Pass Through Grantor/ Pass Through Entity CFDA

Program Grant Title Number Number Expenditures

US DEPARTMENT OF TRANSPORTATIONPassed through Ohio Department of Transportation

Highway Planning and Construction Cluster:Marysville Fifth St Sidewalk PID 99923 20.205 156,518$ State Route 31 Small Cities Grant PID 101063 20.205 1,304,181 US-33 Smart Mobility Grant PID 106432 20.205 131,105

Total Highway Planning and Construction Cluster 1,591,804

Total US Department of Transportation 1,591,804

UNITED STATES DEPARTMENT OF JUSTICEDirect:

Bulletproof Vest Partnership Program N/A 16.607 1,428

Total United States Department of Justice 1,428

Total Expenditures of Federal Awards 1,593,232$

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

NOTE A - SIGNIFICANT ACCOUNTING POLICIES

CITY OF MARYSVILLESchedule of Expenditures of Federal Awards

For The Year Ended December 31, 2018

The accompanying schedule of expenditures of federal awards is a summary of the activity of the City's federal award programs. The schedule has been prepared using the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The City did not elect to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.


8260 NORTHCREEK DRIVE, SUITE 330 / CINCINNATI, OH 45236 (513) 891-2722 FAX (513) 891-2760 TWO PRESTIGE PLACE, SUITE 240 / DAYTON, OH 45342 (937) 433-0400 FAX (937) 433-0429

www.plattenburg.com

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Honorable Mayor and City Council City of Marysville

We have audited, in accordance with the 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, each major fund, and the aggregate remaining fund information of the City of Marysville (the City), as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 14, 2019, wherein we noted the City adopted GASB No. 75 as disclosed in Note 2.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions 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.

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 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 entity's financial statements will not be prevented, or detected and corrected 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.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free from 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.

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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 on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Plattenburg & Associates, Inc. Cincinnati, Ohio June 14, 2019

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8260 NORTHCREEK DRIVE, SUITE 330 / CINCINNATI, OH 45236 (513) 891-2722 FAX (513) 891-2760 TWO PRESTIGE PLACE, SUITE 240 / DAYTON, OH 45342 (937) 433-0400 FAX (937) 433-0429

www.plattenburg.com

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF

FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE


Report on Compliance for Each Major Federal Program

We have audited the City of Marysville’s (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended December 31, 2018. 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 federal statutes, regulations, and the terms and conditions of its federal awards 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. 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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.

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, 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, 2018.

Report on Internal Control over Compliance

Management of the City 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

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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 an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, 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 or significant deficiencies. 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated June 14, 2019, which contained unmodified opinions on those financial statements, wherein we noted the City adopted GASB No. 75 as disclosed in Note 2. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance 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 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Plattenburg & Associates, Inc. Cincinnati, Ohio June 14, 2019

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CITY OF MARYSVILLE SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Year Ended December 31, 2018

Section I – Summary of Auditor’s Results

Financial Statements

Type of auditor’s report issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified

Internal control over financial reporting:

Material weakness(es) identified? No

Significant Deficiency(s) identified? None reported

Noncompliance material to financial statements noted? No Federal Awards

Internal control over major federal programs:

Material weakness(es) identified? No

Significant Deficiency(s) identified? None reported

Type of auditor’s report issued on compliance for major federal programs: Unmodified

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No

Identification of major federal programs:

Highway Planning and Construction Cluster ‐CFDA# 20.205

Dollar threshold used to distinguish between Type A and Type B Programs $750,000

Auditee qualified as low‐risk auditee? No

Section II – Findings Related to the Financial Statements Required to be reported in Accordance with GAGAS

None

Section III – Federal Award Findings and Questioned Costs

None

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CITY OF MARYSVILLE SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS

December 31, 2018 The City of Marysville had no prior audit findings or questioned costs.


2018


Comprehensive Annual Financial Report For the Year Ended December 31, 2018



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COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2018

UNAUDITED

Prepared by the Finance Department

Justin NahviFinance Director


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TABLE OF CONTENTS

CITY OF MARYSVILLE

UNION COUNTY, OHIO

INTRODUCTORY SECTION

A Letter of Transmittal ........................................................................................... vii

B List of Principal Officials ................................................................................... xvi

C City Organizational Chart ................................................................................. xvii

D Certificate of Achievement for Excellence in Financial Reporting .............. xviii

FINANCIAL SECTION

A Independent Auditor’s Report................................................................................ 1

B Management’s Discussion and Analysis ...................................................................... 3

C Basic Financial Statements: Government-wide Financial Statements:

Statement of Net Position ................................................................................... 16

Statement of Activities ....................................................................................... 18

Fund Financial Statements:

Governmental Funds:

Balance Sheet ..................................................................................................... 20

Reconciliation of Total Governmental Fund Balances to Net Position of

Governmental Activities ..................................................................................... 23

Statement of Revenues, Expenditures and Changes in Fund Balances .............. 24

Reconciliation of the Statement of Revenues, Expenditures and Changes

in Fund Balances of Governmental Funds to the Statement of Activities .......... 28

Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual (Non-GAAP Budgetary Basis):

General Fund ................................................................................................. 31

Proprietary Funds:

Statement of Net Position ................................................................................... 32

Statement of Revenues, Expenses and Changes in Fund Net Position ............... 36

Statement of Cash Flows .................................................................................... 38

Fiduciary Funds:

Statement of Assets and Liabilities ..................................................................... 42

Notes to the Basic Financial Statements .................................................................. 43

I

II


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D Required Supplemental Information:

Schedule of City’s Proportionate Share of the Net

Pension Liability ............................................................................................... 108

Schedule of City Pension Contributions ........................................................... 110

Schedule of City’s Proportionate Share of the Net Other Postemployment

Benefits (OPEB) Liability ................................................................................ 113

Schedule of City’s Other Postemployment Benefit (OPEB) Contributions ..... 114

Notes to the Required Supplemental Information ................................................. 116

E Combining and Individual Fund Statements and Schedules:

Nonmajor Governmental Financial Statements:

Combining Balance Sheet ................................................................................. 126

Combining Statement of Revenues, Expenditures and Changes in Fund

Balance ............................................................................................................. 127

Combining Balance Sheet – Nonmajor Special Revenue Funds ...................... 128


Balance – Nonmajor Special Revenue Funds ................................................... 134

Combining Balance Sheet – Nonmajor Capital Projects Funds ....................... 140


Balance – Nonmajor Capital Projects Funds .................................................... 142

Individual Schedules of Revenues, Expenditures and Changes in Fund

Balance - Budget and Actual (Non-GAAP Budgetary Basis):

Major Governmental Funds:

General Fund .................................................................................................. 144

Debt Service Fund:

Debt Service Fund ....................................................................................... 148

Coleman’s Crossing TIF Fund ..................................................................... 149

Capital Projects Fund:

Capital Improvement Projects (CIP) Fund .................................................. 150

Nonmajor Governmental Funds:

Special Revenue Funds:

Veyance Incentive Fund .............................................................................. 151

Univenture Financial Incentive Fund........................................................... 152

Enterprise Zone Revenue Fund .................................................................... 153

Street Tree Fund........................................................................................... 154


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Nonmajor Governmental Funds: (Continued)

Special Revenue Funds (Continued):

Pool Fund ..................................................................................................... 155

City Events Fund ......................................................................................... 156

Police Pension Fund..................................................................................... 157

Fire Pension Fund ........................................................................................ 158

Police Grant Fund ........................................................................................ 159

Fire Grant Fund ............................................................................................ 160

Street Maintenance Fund ............................................................................. 161

Law Enforcement Trust Fund ...................................................................... 162

Mandatory Drug Fine Fund ......................................................................... 163

Driving Under the Influence (DUI)

Alcohol Education And Enforcement Fund ....................................... 164

Driving Under the Influence (DUI) Indigent Drivers Treatment Fund........ 165

State Highway Fund..................................................................................... 166

Court Computer and Research Fund ............................................................ 167

Municipal Court Computer Fund ................................................................. 168

Municipal Court Special Projects Fund ....................................................... 169

Court Probation Fee Fund ............................................................................ 170

Eljer Park Fund ............................................................................................ 171

Cemetery Maintenance Fund ....................................................................... 172

Cemetery Endowment Fund ........................................................................ 173

Municipal Court Local Interlock Fund ........................................................ 174

Municipal Court State Interlock Fund ......................................................... 175

Community Housing Improvement Program (CHIP) Grant Fund ............... 176

Federal Law Enforcement Fund................................................................... 177


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Nonmajor Governmental Funds: (Continued)

Capital Projects Funds:

Parkland Development Fund ....................................................................... 178

ODNR Grant Fund ....................................................................................... 179

OPWC Grant Fund....................................................................................... 180

Community Development Block Grant (CDBG) Formula Grant Fund ....... 181

Pedestrian Bridge Fund ................................................................................ 182

Safe Routes to School Grant Fund ............................................................... 183

Town Run Restoration Fund ........................................................................ 184

City Development Grant Fund ..................................................................... 185

Northwest 33 Grant Fund ............................................................................ 186

State Route 31 Fund ..................................................................................... 187

Fiduciary Funds – Agency Funds:

Combining Statement of Changes in Assets and Liabilities ............................. 189


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STATISTICAL SECTION

Net Position by Component - Last Ten Years .............................................................................. S 2

Changes in Net Position - Last Ten Years .................................................................................... S 4

Fund Balances, Governmental Funds - Last Ten Years ............................................................... S 8

Changes in Fund Balances, Governmental Funds - Last Ten Years .......................................... S 10

Income Tax Revenues by Source, Governmental Funds - Last Ten Years ................................ S 14

Income Tax Collections- Current Year and Nine Years Ago ..................................................... S 17

Ratios of Outstanding Debt By Type - Last Ten Years .............................................................. S 18

Ratios of General Bonded Debt Outstanding - Last Ten Years ................................................. S 20

Computation of Direct and Overlapping Debt Attributable to

Governmental Activities - Current Year ............................................................................... S 23

Debt Limitations - Last Ten Years ............................................................................................. S 24

Pledged Revenue Coverage - Last Ten Years ............................................................................ S 26

Demographic and Economic Statistics - Last Ten Years ........................................................... S 28

Principal Employers - Current Year and Nine Years Ago ......................................................... S 31

Full Time Equivalent Employees by Function - Last Ten Years ............................................... S 32

Operating Indicators by Function - Last Ten Years ................................................................... S 34

Capital Asset Statistics by Function - Last Ten Years ............................................................... S 36

III


INTRODUCTORY SECTION


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CITY OF MARYSVILLE

209 South Main Street Marysville, Ohio 43040

Justin Nahvi, City Finance Director

phone (937) 645-1030 fax (937)-645-1105 www.marysvilleohio.org

June 14, 2019

To the City Council and the Citizens of the City of Marysville, Ohio:

We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of Marysville, Ohio, (the City) for the year ended December 31, 2018. The report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) established by statements of the Governmental Accounting Standards Board (GASB), other authoritative pronouncements and guidelines recommended by the Government Finance Officers Association (GFOA) of the United States and Canada, and audited in accordance with Generally Accepted Auditing Standards (GAAS). GAAP requires a narrative introduction, overview, and analysis called the Management’s Discussion and Analysis (MD&A) to accompany the basic financial statements. This Letter of Transmittal (LOT) is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

THE REPORT

State law, along with Administrative Rules of the Auditor of State, requires all City governments to publish an Annual Report within 150 days of the close of each fiscal year. This report must present a complete set of financial statements presented in conformity with GAAP. Various City debt service Trust Agreements require Audited Annual Reports in accordance with GAAS. Pursuant to these requirements, we hereby issue the CAFR of the City of Marysville, Ohio, for the fiscal year ended December 31, 2018.

While there is no legal requirement for the preparation of a CAFR, it represents a commitment by the City, and its officers, to conform to nationally recognized standards of excellence in financial reporting. This report consists of management’s representations concerning the finances of the City. Responsibility for both the accuracy of the presented data and the completeness and reliability of the presentation, including all disclosures, rests with City management.

City Management has established various internal controls designed to compile reliable information for the preparation of the Annual Financial Statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s various internal controls are designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City; and that all disclosures necessary to enable the reader to gain an understanding of the City's financial activity have been presented.

http://www.marysvilleohio.org/


Letter of Transmittal

For the Year Ended December 31, 2018

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The firm of Plattenburg, Certified Public Accountants (independent auditor) has audited the financial

statements of the City. The objective of the independent audit was to provide reasonable assurance that

the financial statements of the City for the year ended December 31, 2018, are free from misstatement.

The audit involved examining, on a test basis, evidence supporting amounts and disclosures in the

financial statements, assessing the accounting principles used and significant estimates made by the

management, and evaluating the overall financial statement presentation. The independent auditor issued

an unmodified opinion that the basic financial statements are presented fairly in conformity with GAAP,

in all material respects, representing the financial position of the City as of December 31, 2018. The

Independent Auditor’s Report is presented as the first component of the financial section of this report.

PROFILE OF THE CITY OF MARYSVILLE

City Overview

The City of Marysville is an independent political subdivision of the State of Ohio and operates subject to

the provisions of its charter, the Ohio Constitution, and various sections of the Revised Code. As a home-

rule municipality, the City may exercise all powers of local self-government under Article XVIII, Section

3 of the Ohio Constitution. The City is the county seat of Union County (the County), and it offers the

advantages of a metropolitan area combined with the charm of a rural, smaller community. Settled along

Mill Creek early in the 1820's, the City encompasses approximately 16 square miles of territory and

serves as the hub for the County.

Effective January 1, 2016, the form of government provided by the charter of the City switched from the

"mayor-director-council form of government" to the “council-manager form of government.” Legislative

authority is exercised by a seven-member City Council (the "Council") that meets regularly on the second

and fourth Thursdays of each month. Three members of Council are elected from the City at large and

four are elected from each of four wards. Council members serve overlapping terms of four years. At the

first meeting of each year, the Council elects one of its members to serve as Mayor and one to serve as Vice-

Mayor, each for a term of one year.

Marysville is located approximately 25 miles northwest of Columbus, the State capital, on U.S. 33, a

major highway. Other principal highways in Marysville are U.S. Route 36 and State Routes 4, 31, 38,

245 and 736. The City's central location is among its greatest assets because it makes travel quick and

convenient for residents.

As the largest city in the County, Marysville is the home of both large and small industries, and its

diversified business base helps provide a desirable quality of life. Few communities of its size in the

country have enjoyed the international spotlight that has focused on the City, largely as a result of the

Honda of America Manufacturing, Inc. automobile assembly facilities. Other major industries located in

the City include The Scotts Miracle-Gro Company (lawn care products), Veyance Technologies (formerly

The Goodyear Tire & Rubber Company), Univenture (manufacturer), Nestlé Product Technology Center

(food research and development), and Parker Hannifin –Hydraulic Pump Division (manufacturer).

The City of Marysville provides a host of traditional municipal services including police and fire

protection, parks and recreation, operation of a municipal court, street maintenance and other

governmental services. In addition, the City owns and operates water and sewer systems to serve

consumers within the City and certain immediately adjacent environs.




DRAFT - ix - 5/30/2019

The Reporting Entity

The accompanying basic financial statements comply with the provisions of GASB Statement No. 14,

"The Financial Reporting Entity", as amended by GASB Statement No. 39, "Determining Whether

Certain Organizations are Component Units" and GASB Statement No. 61 “The Financial Reporting

Entity: Omnibus; an amendment of GASB Statements No. 14 and No. 34,” in that the financial statements

include all of the organizations, activities, functions and component units for which the City (The

Reporting Entity) is financially accountable. Financial accountability is defined as the appointment of a

voting majority of the component unit's board, and either (1) the City's ability to impose its will over the

component unit, or (2) the possibility that the component unit will provide a financial benefit to or impose

a financial burden on the City.

Based on the foregoing, the reporting entity of the City has no component units, but includes the

following services as authorized by its charter: police and fire protection, parks and recreation, planning,

zoning, engineering, street maintenance, provision of water and wastewater treatment services, refuse

collection (on a contractual basis) and other governmental services.

Budgetary and Accounting Controls

The City's budgetary accounting system was designed to provide reasonable assurance that:

1. The City's assets are protected against loss and unauthorized use or disposition; and

2. Reliable financial reports for preparing financial statements and providing accountability for

assets are maintained.

The concept of reasonable assurance states that internal controls should be evaluated using the following

criteria:

1. The expense associated with providing the internal controls should not exceed the benefits likely

to be derived from their implementation; and

2. The evaluation of the offsetting costs and benefits involves estimates and judgment by the City

administration and members of the finance office.

All internal control evaluations occur within this framework. It is the belief of the administrative and

financial management personnel that the City's financial controls adequately safeguard existing assets and

provide reasonable assurance of the proper recording of financial transactions.




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Budgetary internal controls are maintained to ensure compliance with legal provisions embodied in the

annual appropriated budget by City Council. The activity of all funds is included in the annual

appropriation budget. The City also maintains an encumbrance accounting system to maintain budgetary

control. The control is maintained through the encumbering of estimated purchases through the use of

formal approved purchase orders. Encumbered amounts do not lapse at year-end, unused encumbrances

are carried over to the following year. The Administration, Mayor, and City Council receive a monthly

report of amounts in the City’s bank accounts reconciled to the amounts on the City’s internal records. In

addition, the Administration, Mayor, and City Council receive a monthly report comparing budgeted and

actual revenue and expenditure.

As demonstrated by the statements and schedules included in the financial section of this report, the City

continues meeting its responsibility for sound financial management.

LOCAL ECONOMY

The City of Marysville, once a predominantly agricultural area, has transformed into a young and robust

municipality. Much of this economic development has been in the area of manufacturing and relates to its

two largest corporations – Honda of America Mfg., Inc. and The Scotts Miracle-Gro Company. The first

Honda facility (motorcycle production) was built in the late 1970's with two other large facilities

(automobile, research and development) constructed in the 1980’s outside the City, but within the County,

and serves as a major employer for the City's residents. The Scotts Miracle-Grow Company, founded in

Marysville in 1868, employs approximately 1,100 people and maintains its World and North American

Headquarters as well as its main manufacturing facility in the City.

Industrial developments within the City limits are predominately clustered in the southeastern portion of

the City along Industrial Parkway to the north and south of Scottslawn Road. A significant amount of

vacant farmland and potential development sites are also found in this area, including the new 33

Innovation Park. A small number of industrial businesses also continue to operate closer to the city’s

center. Office and research and development facilities occur on small sites throughout the city. The

largest existing research and development facility, the Nestle Product Technology Center, employs

approximately 250 people and is located on Collins Avenue. However, other research and development

facilities are operated by The Scotts Miracle-Gro Company, ContiTech, Parker Hannifin, and Honda of

America Mfg., Inc.

Retail developments such as Coleman’s Crossing, City Gate, and Bethel Woods, offer several hundred

acres of commercial development. These developments are located along US 33, making Marysville a

regional shopping destination. Several big box retailers such as Home Depot, Wal-Mart, Lowe’s, Meijer,

and Kroger Marketplace have called Marysville home for the past several years. These businesses have

spurred additional retail and commercial development in the area and more businesses are currently being

planned.

Marysville provides a wide range of residential options throughout the community, from upscale,

executive homes to traditional suburban homes, as well as the historic residential area in the

neighborhood known as Olde Town Marysville. The sharp increase in population over the last 10 years

has been the catalyst for several large residential developments, including Mill Valley and Scott Farms to

the north of US 33 as well as the Green Pastures subdivision in the western portion of the City. Several

other residential developments are located along State Route 4/US 36 and State Route 38 in the southwest

area of the City.




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Uptown Marysville, which includes the historic central business district, is composed of a mix of

residential, retail, and office uses in the blocks surrounding the intersection of Fifth and Main streets.

Team Marysville, an association of Marysville officials, business owners, and residents established in

2012, continues to work toward improving the economic condition of the city’s prized Uptown District.

The City of Marysville, Union County, and the Marysville Exempted Village School District joined

together to create the Council of Governments. By pooling resources among the governmental units, the

entities will be able to save thousands of taxpayer dollars initially leading to bigger savings in the future.

ECONOMIC DEVELOPMENT

2018 brought continued economic growth for the City of Marysville thanks to a strong and diverse

business community and recovering national economy. Union County’s average unemployment rate of

3.5% is consistently lower than the State of Ohio and United States. The City’s economy remained stable

and continued to expand as evidenced by several commercial, industrial, and residential new builds and

expansions.

Some of the economic development highlights from 2018 include:

33 Smart Mobility Corridor

Work to move the 33 Smart Mobility Corridor project forward continued throughout 2018. The

Ohio Department of Transportation completed installation of 35 miles of fiber optic cable along

US-33 between Dublin and East Liberty. Installation of the redundant fiber loop was partially

completed in 2018 and is expected to be fully complete in early 2019.

The NW 33 Council of Governments, which oversees the 33 Smart Mobility Corridor Project,

hired a marketing consultant to determine the best way to brand and market the corridor. The

marketing strategy is expected to be complete in the summer of 2019.

Connected Marysville

By the end of 2018, five traffic signals within the City had been upgraded to allow for the testing

of smart mobility technologies. Honda of America successfully tested the first traffic signal at

Fifth and Main Streets in October. Former Ohio Governor John Kasich joined company,

community, and media representatives to celebrate the occasion. All 27 traffic signals within the

City will be upgraded by 2020.

33 Smart Mobility Corridor Economic Development Strategy

Work was completed on the 33 Smart Mobility Corridor Economic Development Strategy

(Strategy). The Strategy serves as a supplement and update to the original 2014 Union County

Economic Development Strategy. It provides a framework for policies, projects, and programs

that can be implemented to promote, encourage, and spur business growth and development

within the smart mobility industry. As a follow-up to the completion of the Strategy, plans are

underway to complete a complementing smart mobility marketing strategy in 2019-2020.




DRAFT - xii - 5/30/2019

Smart Workforce Committee

A Smart Workforce Committee has been established to promote the advancement of educational

and training opportunities for students and incumbent workers interested in smart mobility-related

careers. Members of the committee include representatives from DriveOhio/ODOT, The Ohio

State University, Columbus State Community College, Transportation Research Center, Ohio Hi-

Point Career Center, Marion Technical College, Marysville Early College High School, and

private sector partners.

Automotive & Mobility Innovation Center (AMIC)

After receiving grant funding through the 2018 Ohio Capital Appropriations Bill, planning began

to establish the AMIC at the 33 Innovation Park. The AMIC will be a 20,000 square-foot center

of innovation that will house multiple offices, co-working space, data center, and other amenities

for companies, governmental agencies, and academia involved with the development and testing

of smart mobility technologies. It is anticipated that the AMIC will be open in late 2020.

33 Innovation Park

Construction of the first phase of utilities and roadway infrastructure was completed at the 33

Innovation Park in late summer 2018. The City constructed 1,200-feet of roadway known as

Innovation Way, and also completed the installation of park signage and streetscape. Despite

multiple attempts, efforts to secure the park’s first tenant were unsuccessful.

Woodside Development

City officials approved plans for the Woodside Development, a 107-acre mixed use project that

will include more than 850 residences, offices, shops, and restaurants. The multi-year project will

also include the expansion of Professional Parkway to Columbus Avenue. The Woodside project

is being led by The Robert Weiler Company and promises to be the largest mixed use

development in City history.

Cook’s Pointe

Construction of Cook’s Pointe Boulevard was completed in late 2018. The project consisted of

the construction of a new 0.53-mile, five lane roadway between OH-31 and OH-4 north of US-33.

The project also included the installation of underground utilities, street lighting, street trees, a

shared use path, and sidewalk. This project provides access to more than 160-acres of prime

commercial and residential property. By the end of the year, a multi-family development and two

commercial projects had been announced for portions of the site.

Expanded Lodging Options

Visitors to Marysville will soon have multiple new lodging options as construction began on three

hotels in various locations within the city. Comfort Suites, Fairfield Inn & Suites, and

Home2Suites each began or continued construction, while a fourth, Springhill Suites, announced

its intention to build a new hotel in 2019. Combined, these four hotels will add nearly 350 new

hotel rooms to the community.




DRAFT - xiii - 5/30/2019

New Marysville Businesses

• Agnone, Morrison & Associates, Eye Physicians and Surgeons, Inc.

• Arby’s

• Attaboyz Archery

• Betsey’s Boutique

• Better Than Yesterday

• Carissa Cantrell, Massage Therapy

• Custom Staffing

• Eda's Italian Ice

• Edward Jones - Financial Advisor: Mandy S. Beecher

• Goodies Galore

• Kendall & Blue Boutique

• Monarch Skilled Nursing and Rehab (expansion)

• Primrose School of Marysville

• Red Shed BBQ

• SodaPharm

• Stir Fresh Asian Canteen

• The Captivating Canine Spa

• The Learning Cottage

• The Little Blue Boutique

• The Pension Group

• The Story of Autism

FUTURE ECONOMIC DEVELOPMENT

Community and economic development are a priority to the City to ensure a vibrant economy and top-

notch quality of life. Through the sharing of public and private resources and forging of new partnerships,

the City continues to be a catalyst in the development and revitalization of the community. To further

guide future growth and development, the City and its economic development partners recently completed

a new Community Comprehensive Plan, 33 Smart Mobility Corridor Economic Development Strategy,

and an update to the City’s Economic Development Strategic Plan.

Hiring of Development Project Manager – The City of Marysville, Union County, and Union County CIC

(Marysville Economic Development Office) have each committed funding for the hiring of a new

economic development staff person. The Development Project Manager will work to implement and

manage various economic development programs and initiatives, including the 33 Smart Mobility

Corridor, countywide business retention and expansion program, and entrepreneurial development

program, among others. The new employee will begin in June 2019.

Implementation of 33 Smart Mobility Corridor Strategy – The 33 Smart Mobility Corridor Economic

Development Strategy was completed in 2018. The recommendations set forth in the strategy will be

incorporated into the 2020-2021 Union County-Marysville Economic Development Action Plan.




DRAFT - xiv - 5/30/2019

33 Smart Mobility Corridor Marketing Strategy – Work will begin on developing the 33 Smart Mobility

Corridor Marketing Strategy in 2019-2020 as a follow-up to the 33 Smart Mobility Corridor Economic

Development Strategy. The marketing strategy will focus specifically on Union County, Marysville, and

the US-33 Corridor. It will be a comprehensive economic development marketing plan that includes

positioning, marketing goals and strategies, audiences, tactics, timelines, and budgets. It will also include

detailed recommendations for positioning to best reach target audiences, overall and for each target

audience, based on both what is important to each target audience and the region’s competitive strengths.

Strategic Destination Analysis & Hospitality Plan – The Union County CIC will assist the Union County

Convention & Visitors Bureau to complete a Strategic Destination Analysis and Hospitality Plan. The

plan will include a SWOT Analysis and will determine the forces that are likely to affect tourism and

business travel in Marysville and Union County. Additionally, the plan will uncover destinations and

reasons for business and leisure visits, identify opportunities to improve local amenities, explore the need

for meeting space/conference center, and present recommendations on how the community can grow and

support the travel and hospitality industry.

33 Innovation Park Attraction Efforts – The City of Marysville and the Union County CIC will continue

to work closely with Lee & Associates and other partners to secure the first building/tenant at the 33

Innovation Park. To-date, several developers and businesses have expressed interest in locating projects at

the park. The Automotive & Mobility Innovation Center (AMIC), as outlined above, will also be a future

tenant at the park.

Tax Incentive Impact Study – To better understand the impact that tax incentives have on local governing

bodies, the Union County CIC will hire a consultant to conduct a Tax Incentive Impact Study. The study

will include a tax incentive audit, economic impact of previous project, benchmarking analysis with peer

communities, reverse site selection exercise, and tax forecast. It will also include recommendations on

how to improve existing tax abatement programs.

Biennial Business & Goodwill Mission to Japan – In September, a delegation of City, County, and

Marysville Schools officials will travel to Japan to meet with the parent companies of local Japanese-

owned businesses. The delegation will also attend the Midwest U.S. - Japan Association Conference and

meet with community representatives in Yorii-machi, Marysville’s friendship city.




DRAFT - xv - 5/30/2019

AWARDS AND ACKNOWLEDGEMENTS

Independent Audit

Included in this report is an unqualified audit opinion rendered on the City's financial statements for the

year ended December 31, 2018, issued by Plattenburg, Certified Public Accountants. City management

plans to continue to subject the financial statements to an annual independent audit as part of the

preparation of a CAFR, and to meet requirements of certain Revenue Trust Agreements on Revenue Debt.

In addition, an annual audit serves to maintain and strengthen the City's accounting and budgetary

controls.

Public Disclosure

The publication of this CAFR is indicative of the City's commitment to provide significantly enhanced

financial information and accountability to its citizens. In addition to the citizens of Marysville, the

recipients of this report include city, state, federal offices, schools, libraries, newspapers, investment

banking firms, banks and rating agencies. The report is made available to any person or organization

requesting it. The extensive effort to prepare and distribute this report is indicative of the continued efforts

of the City to improve its overall financial accounting, management and reporting capabilities.

Acknowledgments

Sincere appreciation is extended to the many individuals who have worked diligently and contributed

significant time and effort in gathering data for this report, particularly the staff of Donald J. Schonhardt

& Associates, Inc., who through their continued knowledge and professionalism help make this annual

project become a reality.

A special thank you is extended to the Members of City Council and the City Departments for the support

and trust shown to the Administration and the Finance Department and for allocating the resources and

time for the development of this report, which demonstrates the City’s commitment to conform to

reporting requirements established for municipal governments, and to maintain the sound financial

position the City has enjoyed for many years. A final thank you goes to the Citizens of Marysville, Ohio,

who continue to support the many decisions made by the City in its financial operations.

Finally, we would especially like to recognize City staff, all of whom exhibited dedication and

professionalism throughout the many hours required in preparing this report.

Respectfully submitted,

Justin Nahvi Terry Emery

Director of Finance


City Manager



List of Principal Officials


DRAFT - xvi - 5/30/2019

ELECTED

OFFICIALS

OFFICE

TERM

EXPIRES

J.R. Rausch Council President 12/31/21

Nevin Taylor Council Vice-President 12/31/19

Alan Seymour Council Member 12/31/19

Henk Berbee Council Member 12/31/21

Deborah Groat Council Member 12/31/19

Mark Reams Council Member 12/31/21

Tracy Richardson Council Member 12/31/19

ADMINISTRATIVE

PERSONNEL

TITLE

TERM OF

OFFICE

Terry Emery

City Manager

Appointed

Justin Nahvi

Director of Finance

Appointed

Tim M. Aslaner

Law Director

12/31/21

City Address:

Marysville City Hall

209 South Main Street

Marysville, Ohio 43040


City Organizational Chart


DRAFT - xvii - 5/30/2019


Government Finance Officers Association of the United States and Canada

Certificate of Achievement for Excellence in Financial Reporting

DRAFT - xviii - 5/30/2019

FINANCIAL SECTION



1 8260 NORTHCREEK DRIVE, SUITE 330 / CINCINNATI, OH 45236 (513) 891-2722 FAX (513) 891-2760

TWO PRESTIGE PLACE, SUITE 240 / DAYTON, OH 45342 (937) 433-0400 FAX (937) 433-0429 www.plattenburg.com

INDEPENDENT AUDITOR’S REPORT


Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City of Marysville (the City) as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City's basic financial statements.

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 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 entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'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.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business‐type activities, each major fund and the aggregate remaining fund information of the City, as of December 31, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter

As discussed in Note 2 to the financial statements, during the year ended December 31, 2018, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pension. We did not modify our opinion regarding this matter.

2


Other Matters

Required Supplementary Information

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

Supplementary and 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 introductory section, combining and individual nonmajor fund financial statements and schedules and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly 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 combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have 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 them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2019, 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 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.

Plattenburg & Associates, Inc. Cincinnati, Ohio June 14, 2019


Management’s Discussion and Analysis For the Year Ended December 31, 2018 Unaudited

DRAFT - 3 - 6/17/2019

The discussion and analysis of the City of Marysville’s (City) financial performance provides an overall review of the City’s financial activities for the fiscal year ended December 31, 2018. The intent of this discussion and analysis is to look at the City’s financial performance as a whole; readers should also review the transmittal letter, notes to the basic financial statements and financial statements to enhance their understanding of the City’s financial performance.

FINANCIAL HIGHLIGHTS

Key financial highlights for 2018 are as follows:

In total, net position increased $10,183,463, a 9.8% increase from 2017. The net position of governmental activities increased $1,030,570, a 4.6% increase from 2017; and the net position of business-type activities increased $9,152,893 from 2017.

Total revenues were $65,648,601. $30.1 million was general revenues, or 46% of the total revenues; and $35.5 million was program specific revenues in the form of charges for services and sales, operating grants and contributions and capital grants and contributions, or roughly 54% of the total revenues.

The City had $30.6 million in program expenses related to governmental activities; only $6.8 million of these expenses were offset by program specific revenues. General revenues (primarily taxes) of $24.9 million were adequate to provide for the balance on these programs.

Among major funds, the General Fund had $24.6 million in revenues and $17.9 million in expenditures. The General Fund’s fund balance, including transfers, increased $5,406 to $9,432,925.

Net position for the proprietary funds increased by $9,152,893.

The City maintained a bond credit rating of Aa3, as issued by Moody’s Investors Services.

OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report consists of three parts – management’s discussion and analysis, the basic financial statements, and an optional section that presents combining statements for nonmajor governmental funds. The basic financial statements include two kinds of statements that present different views of the City:

These statements are as follows:

1. The Government-Wide Financial Statements – These statements provide both long-term and short-term information about the City’s overall financial status.

2. The Fund Financial Statements – These statements focus on individual parts of the City, reporting the City’s operations in more detail than the government-wide statements.


Management’s Discussion and Analysis

For the Year Ended December 31, 2018 Unaudited

DRAFT - 4 - 5/30/2019

The financial statements also include notes that explain some of 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 Statements

The government-wide statements report information about the City as a whole using accepted methods

similar to those used by private-sector companies. The Statement of Net Position includes all of the

government’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. All of

the current year’s revenues and expenses are accounted for in the statement of activities regardless of

when cash is received or paid.

The two government-wide statements report the City’s net position and how they have changed. Net-

position (the difference between the City’s assets plus deferred outflows of resources and liabilities plus

deferred inflows of resources) is one way to measure the City’s financial health or position.

Over time, increases or decreases in the City’s net position is an indicator of whether its financial

health is improving or deteriorating, respectively.

To assess the overall health of the City you need to consider additional nonfinancial factors such as

property tax base, current property tax laws, conditions of the City’s streets and general infrastructure

and status of growth within the City.

The government-wide financial statements of the City are divided into two categories:

Governmental Activities – Most of the City’s programs and services are reported here including

security of persons and property, public health and welfare services, leisure time activities,

community environment, transportation and general government.

Business-Type Activities – These services are provided on a charge for goods or services basis to

recover all of the expenses of the goods or services provided. The City’s water, sewer, stormwater

and sanitation services are reported as business-type activities.

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 devices that the City uses to keep track of specific sources

of funding and spending for particular purposes.

Governmental Funds – Most of the City’s activities are reported in governmental funds, which focus on

how money flows into and out of those funds and the balances left at year-end available for spending in

future periods. These funds are reported using an accounting method called modified accrual accounting,

which measures cash and all other financial assets that can readily be converted to cash. The

governmental fund statements provide a detailed short-term view of the City’s general government

operations and the basic services it provides. Governmental fund information helps you determine

whether there are more or fewer financial resources that can be spent in the near future to finance

programs. The relationship (or differences) between governmental activities (reported in the Statement of

Net Position and the Statement of Activities) and governmental funds are reconciled in the financial

statements.




DRAFT - 5 - 5/30/2019

Proprietary Funds – Proprietary funds use the same basis of accounting as business-type activities;

therefore, these statements will essentially match.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside

the government. Fiduciary funds are not reflected in the government-wide financial statements because

the resources of those funds are not available to support the City’s own programs. All of the City’s

fiduciary activities are reported in the separate Fiduciary Statement of Assets and Liabilities.

FINANCIAL ANALYSIS OF THE CITY AS A WHOLE

The following table provides a comparison of net position between 2018 and 2017:

Governmental Business-type

Activities Activities Total

Restated Restated Restated

2018 2017 2018 2017 2018 2017

Current and other assets $21,215,845 $22,273,115 $62,276,942 $51,457,780 $83,492,787 $73,730,895

Capital assets, Net 74,486,893 70,207,782 182,816,625 187,774,290 257,303,518 257,982,072

Total assets 95,702,738 92,480,897 245,093,567 239,232,070 340,796,305 331,712,967

Deferred outflows of resources 7,689,338 5,864,639 5,385,348 6,109,146 13,074,686 11,973,785

Net pension liability 21,828,080 22,807,669 2,711,901 3,762,845 24,539,981 26,570,514

Net OPEB liability 19,285,358 15,382,785 1,952,080 1,742,544 21,237,438 17,125,329

Other long-term liabilities 28,314,515 27,933,392 152,657,161 156,139,648 180,971,676 184,073,040

Other liabilities 5,709,984 6,294,659 1,824,745 2,266,361 7,534,729 8,561,020

Total liabilities 75,137,937 72,418,505 159,145,887 163,911,398 234,283,824 236,329,903

Deferred inflows of resources 5,021,910 3,725,372 790,148 39,831 5,812,058 3,765,203

Net position (deficit):

Net investment in capital assets 43,776,985 39,732,395 34,996,804 36,233,245 78,773,789 75,965,640

Restricted 4,091,422 4,718,106 3,901,174 4,162,899 7,992,596 8,881,005

Unrestricted (24,636,178) (22,248,842) 51,644,902 40,993,843 27,008,724 18,745,001

Total net position $23,232,229 $22,201,659 $90,542,880 $81,389,987 $113,775,109 $103,591,646

The net pension liability (NPL) is reported by the City pursuant to GASB Statement 68, “Accounting and

Financial Reporting for Pensions—an Amendment of GASB Statement 27.” For fiscal year 2018, the

City adopted GASB Statement 75, “Accounting and Financial Reporting for Postemployment Benefits

Other Than Pensions,” which significantly revises accounting for costs and liabilities related to other

postemployment benefits (OPEB). For reasons discussed below, many end users of this financial

statement will gain a clearer understanding of the City’s actual financial condition by adding deferred

inflows related to pension and OPEB, the net pension liability and the net OPEB liability to the reported

net position and subtracting deferred outflows related to pension and OPEB.

Governmental Accounting Standards Board standards are national and apply to all government financial

reports prepared in accordance with generally accepted accounting principles. Prior accounting for

pensions (GASB 27) and postemployment benefits (GASB 45) focused on a funding approach. This

approach limited pension and OPEB costs to contributions annually required by law, which may or may

not be sufficient to fully fund each plan’s net pension liability or net OPEB liability.




DRAFT - 6 - 5/30/2019

GASB 68 and GASB 75 take an earnings approach to pension and OPEB accounting; however, the nature

of Ohio’s statewide pension/OPEB plans and state law governing those systems requires additional

explanation in order to properly understand the information presented in these statements.

GASB 68 and GASB 75 require the net pension liability and the net OPEB liability to equal the City’s

proportionate share of each plan’s collective:

1. Present value of estimated future pension/OPEB benefits attributable to active and inactive

employees’ past service

2. Minus plan assets available to pay these benefits

GASB notes that pension and OPEB obligations, whether funded or unfunded, are part of the

“employment exchange” – that is, the employee is trading his or her labor in exchange for wages,

benefits, and the promise of a future pension and other postemployment benefits. GASB noted that the

unfunded portion of this promise is a present obligation of the government, part of a bargained-for benefit

to the employee, and should accordingly be reported by the government as a liability since they received

the benefit of the exchange. However, the City is not responsible for certain key factors affecting the

balance of these liabilities. In Ohio, the employee shares the obligation of funding pension benefits with

the employer. Both employer and employee contribution rates are capped by State statute. A change in

these caps requires action of both Houses of the General Assembly and approval of the Governor. Benefit

provisions are also determined by State statute. The Ohio revised Code permits, but does not require the

retirement systems to provide healthcare to eligible benefit recipients. The retirement systems may

allocate a portion of the employer contributions to provide for these OPEB benefits.

The employee enters the employment exchange with the knowledge that the employer’s promise is

limited not by contract but by law. The employer enters the exchange also knowing that there is a

specific, legal limit to its contribution to the retirement system. In Ohio, there is no legal means to

enforce the unfunded liability of the pension/OPEB plan as against the public employer. State law

operates to mitigate/lessen the moral obligation of the public employer to the employee, because all

parties enter the employment exchange with notice as to the law. The retirement system is responsible for

the administration of the pension and OPEB plans.

Most long-term liabilities have set repayment schedules or, in the case of compensated absences (i.e. sick

and vacation leave), are satisfied through paid time-off or termination payments. There is no repayment

schedule for the net pension liability or the net OPEB liability. As explained above, changes in benefits,

contribution rates, and return on investments affect the balance of these liabilities, but are outside the

control of the local government. In the event that contributions, investment returns, and other changes are

insufficient to keep up with required payments, State statute does not assign/identify the responsible party

for the unfunded portion. Due to the unique nature of how the net pension liability and the net OPEB

liability are satisfied, these liabilities are separately identified within the long-term liability section of the

statement of net position.

In accordance with GASB 68 and GASB 75, the City’s statements prepared on an accrual basis of

accounting include an annual pension expense and an annual OPEB expense for their proportionate share

of each plan’s change in net pension liability and net OPEB liability, respectively, not accounted for as

deferred inflows/outflows. As a result of implementing GASB 75, the City is reporting a net OPEB

liability and deferred inflows/outflows of resources related to OPEB on the accrual basis of accounting.

This implementation also had the effect of restating net position at December 31, 2017 from $37,518,574

to $22,201,659 for Governmental Activities and from $83,110,422 to $81,389,987 for Business-type

Activities.




DRAFT - 7 - 5/30/2019

Changes in Net position – The following table shows the changes in net position for the fiscal year 2018

and 2017: Governmental Business-type

Activities Activities Total

2018 2017 2018 2017 2018 2017

Revenues

Program revenues:

Charges for Services and Sales $4,100,018 $3,567,803 $28,752,058 $26,818,369 $32,852,076 $30,386,172

Operating Grants and Contributions 1,029,207 894,694 0 0 1,029,207 894,694

Capital Grants and Contributions 1,671,702 428,165 0 21,677 1,671,702 449,842

General revenues:

Property Taxes 1,766,279 1,609,037 0 0 1,766,279 1,609,037

Municipal Income Taxes 18,386,826 18,830,805 0 0 18,386,826 18,830,805

Other Local Taxes 391,671 384,028 0 0 391,671 384,028

Payments in Lieu of Taxes 2,660,992 1,832,342 4,620,956 3,721,459 7,281,948 5,553,801

Grants and Entitlements not Restricted

to Specific Programs 874,366 115,131 0 0 874,366 115,131

Investment Earnings 300,294 140,947 601,846 308,880 902,140 449,827

Miscellaneous 492,386 320,658 0 0 492,386 320,658

Total revenues 31,673,741 28,123,610 33,974,860 30,870,385 65,648,601 58,993,995

Program Expenses:

Security of Persons and Property 14,030,632 13,706,093 0 0 14,030,632 13,706,093

Public Health and Welfare Services 334,933 431,163 0 0 334,933 431,163

Leisure Time Activities 415,980 446,269 0 0 415,980 446,269

Community Environment 5,869,580 3,011,885 0 0 5,869,580 3,011,885

Transportation 3,456,475 3,874,024 0 0 3,456,475 3,874,024

General Government 5,516,227 6,478,340 0 0 5,516,227 6,478,340

Interest and Fiscal Charges 1,019,344 1,022,991 0 0 1,019,344 1,022,991

Sewer 0 0 16,127,090 15,359,155 16,127,090 15,359,155

Water 0 0 6,080,070 6,169,630 6,080,070 6,169,630

Stormwater 0 0 803,617 810,021 803,617 810,021

Sanitation 0 0 1,811,190 1,579,169 1,811,190 1,579,169

Total expenses 30,643,171 28,970,765 24,821,967 23,917,975 55,465,138 52,888,740

Change in Net Position Before Transfers 1,030,570 (847,155) 9,152,893 6,952,410 10,183,463 6,105,255

Transfers 0 373,064 0 (373,064) 0 0

Total Change in Net Position 1,030,570 (474,091) 9,152,893 6,579,346 10,183,463 6,105,255

Beginning Net Position, Restated 22,201,659 N/A 81,389,987 N/A 103,591,646 N/A

Ending Net Position $23,232,229 $22,201,659 $90,542,880 $81,389,987 $113,775,109 $103,591,646




DRAFT - 8 - 5/30/2019

Governmental Activities

The information necessary to restate the 2017 beginning balances and the 2017 OPEB expense amounts

for the effects of the initial implementation of GASB 75 is not available. Therefore, 2017 functional

expenses still include OPEB expense of $65,870 for Governmental Activities and $22,109 for Business-

type Activities computed under GASB 45. GASB 45 required recognizing OPEB expense equal to the

contractually required contributions to the plan. Under GASB 75, OPEB expense represents additional

amounts earned, adjusted by deferred inflows/outflows.

The contractually required contribution is no longer a component of OPEB expense. Under GASB 75, the

2018 statements report OPEB expense of $1,677,157 for Governmental Activities and $183,946 for

Business-type Activities.

Consequently, in order to compare 2018 total program expenses to 2017, the following adjustments are

needed:

Governmental Business-type

Activities Activities

Total 2018 program expenses under GASB 75 $30,643,175 $24,821,967

OPEB expense under GASB 75 (1,677,157) (183,946)

2018 contractually required contribution 32,365 0

Adjusted 2018 program expenses 28,998,383 24,638,021

Total 2017 program expenses under GASB 45 28,970,765 23,917,975

Change in program expenses not related to OPEB $27,618 $720,046



DRAFT - 9 - 6/17/2019


Net position of the City’s governmental activities had an increase of $1,030,570 from 2017. Municipal income tax receipts decreased $443,979, on a full accrual basis from 2017. The City receives an income tax based on a percentage of all salaries, wages, commissions and other compensation earned from residents living within the City and from nonresidents for work done or services performed or rendered in the City. In addition, interest income for the General Fund increased $159,977 from 2017 in relation to four increases to the federal funds target rate that were instituted by the Federal Open Market Committee in 2018.

Charges for Services increased by $532,215 from 2017. This was primarily due to an increase in permits and inspection fees collected in the governmental activity funds as compared to the 2017 fiscal year.

Capital grants and contributions increased by $1,243,537 from 2017 due to the City receiving capital grants in 2018 for the State Route 31 Phase 1 project along with the receipt of the ATCMTD grant for the Smart Mobility project along the NW 33 Corridor.

Security of Persons and Property expenses increased $324,539 from 2017. This increase is related to cost of living, merit wage and health insurance cost increases that were realized within the Police, Fire and Municipal Court departments for which expenditures are posted to this fund.

Transportation expenses decreased $417,549 from 2017. This expense category represents the activity of the public works department. This decrease is primarily due to less road improvements occurring in 2018 as compared to 2017.

General Government expenses decreased $962,113 from 2017. This is associated with the decrease in expenditures as previously noted for Transportation expenses.

Property taxes and income taxes made up 5.6% and 58.1% respectively of revenues for governmental activities for the City in fiscal year 2018. The City’s reliance upon tax revenues is demonstrated by the following graph indicating 73.27% of total revenues from general tax revenues:

Percent

Revenue Sources 2018 of TotalGrants and Entitlements not Restricted to Specific Programs $874,366 2.76%Program Revenues 6,800,927 21.47%General Tax Revenues 23,205,768 73.27%General Other 792,680 2.50%

Total Revenue $31,673,741 100.00%2.76%

21.47%

73.27%

2.50%



DRAFT - 10 - 6/17/2019

Business-Type Activities

Net position of the business-type activities increased by $9,152,893 from 2017. This is due in part to an increase of $5,028,200 in the net position of Water.

The City’s business-type activities are its sanitation, sewer, water, and stormwater departments. The water and wastewater treatment plants provide services to a resident base in excess of 23,000. The City also provides wastewater treatment for the Village of Milford Center and several small unincorporated areas outside the City limits. The wastewater treatment plant generated operating revenues of $15,405,998 and had operating expenses of $11,176,994. The water plant generated operating revenues of $10,777,054 and had operating expenses of $5,430,567. The City’s goal is to cover the costs of operations as well as building a cash balance in these funds equivalent to one-third of the department’s annual operating budget. The City is also generating funds for additional capital expansion to ensure continued capacity and capacity improvements for future growth and development.

FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS

The City’s governmental funds reported a combined fund balance of $10,406,836, which is an increase of $338,944 from last year’s balance of $10,067,892. The schedule below indicates the fund balance and the total change in fund balance by fund type as of December 31, 2018 and 2017:

Fund Balance Fund Balance IncreaseDecember 31, 2018 December 31, 2017 (Decrease)

General $9,432,925 $9,427,519 $5,406Debt Service (106,874) (5,000) (101,874)Coleman's Crossing TIF 6,092 224,271 (218,179)Capital Improvements Project (CIP) (2,391,115) (2,516,958) 125,843Other Governmental 3,465,808 2,938,060 527,748

Total $10,406,836 $10,067,892 $338,944

General Fund – The City’s General Fund balance increased due to many factors. The tables that follow assist in illustrating the financial activities of the General Fund:

2018 2017 IncreaseRevenues Revenues (Decrease)

Taxes (Income, Property and Other) $20,637,245 $20,346,700 $290,545Intergovernmental Revenue 370,485 348,210 22,275Charges for Services 2,508,839 2,285,732 223,107Licenses and Permits 154,937 151,919 3,018Investment Earnings 290,125 121,774 168,351Fines and Forfietures 648,152 666,790 (18,638)Donations 1 0 1All Other Revenue 33,527 127,154 (93,627)

Total $24,643,311 $24,048,279 $595,032




DRAFT - 11 - 5/30/2019

General Fund revenues in 2018 increased approximately 2.5% compared to revenues in fiscal year 2017.

The most significant factor contributing to this increase was in taxes reflecting the overall increase in

business, employee withholdings, and self-employed income taxes.

2018 2017 Increase

Expenditures Expenditures (Decrease)

Security of Persons and Property $11,545,316 $11,106,986 $438,330

Public Health and Welfare Services 361,226 413,767 (52,541)

Community Environment 1,289,818 1,039,969 249,849

General Government 4,743,525 4,918,232 (174,707)

Total $17,939,885 $17,478,954 $460,931

General Fund expenditures increased by $460,931 or about 2.6% when compared to the prior year of

2017. The largest increase was in Security of Persons and Property, an increase of $438,330. This is

associated with increases in cost of living, merit and health insurance costs that were applied to

employees with the Police, Fire and Municipal Court departments for which operating expenditures for

these departments are posted to this fund.

The Debt Service fund balance decreased $101,874 from 2017. This is due to increased principal and

interest payments on existing General Obligation debt in 2018 as compared to the prior year.

The Coleman’s Crossing TIF fund balance decreased $218,179 from 2017. This decline is attributed to a

capital project for the installation of a traffic signal on Coleman’s Crossing for which expenditures were

posted to this fund.

The Capital Improvement Project (CIP) fund balance increased $125,843 from 2017. This is due to

receiving more income tax revenue and expending less in debt expenditures in 2018.




DRAFT - 12 - 5/30/2019

The City’s budget is prepared according to Ohio law and is based on accounting for certain transactions

on a basis of cash receipts, disbursements and encumbrances. The most significant budgeted fund is the

General Fund. During the course of fiscal year 2018 the City amended its General Fund budget several

times.

In the General Fund, the final budget basis for revenue was $23.9 million, slightly higher than the original

conservative budget estimates of $23 million. Municipal Income Tax revenues exceeded the final budget

mainly due to an increase in employer withheld taxes and self-employed residents. Also, the General

Fund originally budgeted $23.5 million for expenditures, including transfers and advances, and the final

budgeted expenditures were approximately $26.6 million. Transfer out exceeded the original budget as

the City was able to not only expend more funds on capital projects and but also reduce principal

payments on outstanding debt.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At the end of fiscal 2018 the City had $257,303,518 net of accumulated depreciation invested in land,

improvements, infrastructure, buildings, machinery and equipment, vehicles and construction in progress.

Of this total, $74,486,893 was related to governmental activities and $182,816,625 to the business-type

activities. The following table shows fiscal year 2018 and 2017 balances:

Governmental Increase

Activities (Decrease)

2018 2017

Land $6,308,349 $6,308,349 $0

Construction in Progress 4,837,010 2,478,350 2,358,660

Buildings 29,407,526 29,407,526 0

Improvements Other Than Buildings 8,180,482 7,840,288 340,194

Machinery and Equipment 3,361,231 2,808,291 552,940

Vehicles 6,943,169 6,530,149 413,020

Infrastructure 100,506,337 95,560,495 4,945,842

Less: Accumulated Depreciation (85,057,211) (80,725,666) (4,331,545)

Totals $74,486,893 $70,207,782 $4,279,111




DRAFT - 13 - 5/30/2019

Business-Type Increase

Activities (Decrease)

2018 2017

Land $4,195,515 $4,195,515 $0

Construction in Progress 4,263,430 5,537,068 (1,273,638)

Buildings 108,182,972 108,182,972 0

Improvements Other Than Buildings 28,174,546 28,165,605 8,941

Machinery and Equipment 3,327,847 2,935,991 391,856

Vehicles 2,534,317 2,283,692 250,625

Infrastructure 106,612,374 104,422,710 2,189,664

Less: Accumulated Depreciation (74,474,376) (67,949,263) (6,525,113)

Totals $182,816,625 $187,774,290 ($4,957,665)

Governmental Activities’ increases were associated with investments in replacement vehicles, operating

equipment within the Public Service departments and IT equipment. Additional information on the City’s

capital assets can be found in Note 10.

Debt

At December 31, 2018, the City had $175.6 million in bonds outstanding, $5.4 million due within one

year. The following table summarizes the City’s debt outstanding as of December 31, 2018 and 2017:

2018 2017

Governmental Activities:

Bond Anticipation Note $1,800,000 $2,000,000

General Obligation Bonds 21,386,096 23,147,971

Special Obligation Bond 2,489,293 0

Long-Term Loan 790,000 900,000

Compensated Absences 1,784,262 1,630,683

Capital Leases 64,864 254,738

Net Pension Liability 21,828,080 22,807,669

Net OPEB Liability 19,285,358 15,382,785

Total Governmental Activities 69,427,953 66,123,846

Business-Type Activities:

General Obligation Bonds $9,655,000 $9,865,000

Mortgage Revenue Bonds 142,111,377 145,383,599

OPWC Loans Payable 354,819 384,387

Compensated Absences 535,965 506,662

Net Pension Liability 2,711,901 3,762,845

Net OPEB Liability 1,952,080 1,742,544

Total Business-Type Activities 157,321,142 161,645,037

Totals $226,749,095 $227,768,883

The general obligation bonds supported by governmental activities were for multiple City improvements

financed with bond anticipation notes during the late 1990s. Many of these projects were for the

extension of infrastructure and services to the large annexation of land in 1998. These monies were also

used to refurbish several City streets (Grove Street, Raymond Road) and for the construction of the Public

Service Center. These bonds will be repaid by the general operating revenues (income and property

taxes) of the City.




DRAFT - 14 - 5/30/2019

The general obligation bonds supported by business-type activities were for plant expansion and

renovation of the water and sewer utilities. These bonds were retired from the City’s Water and Sewer

funds during 2013. The mortgage revenue bonds were issued primarily for (1) refinancing the purchase

of the water treatment plant, vehicles, and related infrastructure from the Ohio Water Company in 1991,

(2) refinancing the expansion of the wastewater treatment plant in 1992, (3) infrastructure expansion

required by the large annexation of land in 1998, and (4) construction of a Water Reclamation Facility

and trunk sewer in 2006 through 2009. These bonds are paid by water and sewer revenues collected from

the City’s utility customers for provision of water for consumption and wastewater treatment. Additional

information on the City’s long-term debt can be found in Note 15.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

From August to October of the current year, the City’s five-year budget is prepared. This process starts

with the budgeted current figures and attempts to revise these figures (if applicable) for the remainder of

the year. Predictions are made for the next five years based on assumptions provided by the

Administration. The five-year budget takes a long-term look at the direction of the City. Each

department director prepares the budgeted expenditures that relate to the applicable department. The

finance department prepares the budgeted revenues. The City Administrator and Mayor then review all

figures in detail, and changes are made as necessary.

The budget is then presented to City Council during a workshop, typically held in late October. City

Council reviews the proposed revenues and expenditures for each fund. Changes are then made as

necessary. The final budget is then presented to City Council for their approval.

City Council continues to pursue new revenue sources, while reviewing the possibility of increasing

existing sources. A close watch of current economic conditions is an ongoing process each year to

determine if increased revenues, or reductions in expenditures, are necessary in order to maintain fiscal

stability.

REQUESTS FOR INFORMATION

This financial report is designed to provide our citizens, taxpayers, creditors, and investors with a general

overview of the City’s finances and to reflect the City’s accountability for the monies it receives.

Questions about this report or additional financial information needs should be directed to Justin Nahvi,

City Finance Director, 209 South Main Street, Marysville, Ohio, 43040, (937) 645-7364, or e-mail at

[email protected].

mailto:[email protected]


DRAFT - 15 - 5/30/2019


DRAFT - 16 - 5/30/2019

Statement of Net Position

December 31, 2018

Governmental

Activities

Business-Type

Activities Total

Assets:

Cash and Cash Equivalents 13,375,394$ 48,191,692$ 61,567,086$

Cash and Cash Equivalents with Fiscal Agent 96,909 0 96,909

Investments 0 1,897,797 1,897,797

Receivables:

Municipal Income Taxes 2,931,125 0 2,931,125

Accounts 700,544 3,483,964 4,184,508

Intergovernmental 746,794 724 747,518

Payments in Lieu of Taxes 1,060,053 4,592,015 5,652,068

Interest 21,560 62,781 84,341

Property Taxes 1,889,298 0 1,889,298

Special Assessments 98,549 0 98,549

Prepaid Items 295,619 146,795 442,414

Restricted Assets:

Cash and Cash Equivalents with Fiscal Agent 0 3,901,174 3,901,174

Capital Assets:

Capital Assets Not Being Depreciated 11,145,359 8,458,945 19,604,304

Capital Assets Being Depreciated, Net 63,341,534 174,357,680 237,699,214

Total Assets 95,702,738 245,093,567 340,796,305

Deferred Outflows of Resources:

Pension 4,948,862 739,788 5,688,650

OPEB 2,740,476 193,117 2,933,593

Deferred Loss on Early Retirement of Debt 0 4,452,443 4,452,443

Total Deferred Outflows of Resources 7,689,338 5,385,348 13,074,686

Liabilities:

Accounts Payable 957,869 1,069,275 2,027,144

Accrued Wages and Benefits 203,825 75,519 279,344

Intergovernmental Payable 187,748 40,214 227,962

Contracts Payable 777,070 151,068 928,138

Retainage Payable 267,585 13,377 280,962

Accrued Interest Payable 180,887 475,292 656,179

General Obligation Notes Payable 3,135,000 0 3,135,000

Long-Term Liabilities:

Due Within One Year 4,826,610 3,845,327 8,671,937

Net Pension Liability 21,828,080 2,711,901 24,539,981

Net OPEB Liability 19,285,358 1,952,080 21,237,438

Due in More Than One Year 23,487,905 148,811,834 172,299,739

Total Liabilities 75,137,937 159,145,887 234,283,824

Deferred Inflows of Resources:

Property Tax Levy for Next Fiscal Year 2,854,980 0 2,854,980

Pension 1,750,105 644,730 2,394,835

OPEB 416,825 145,418 562,243

Total Deferred Inflows of Resources 5,021,910 790,148 5,812,058


DRAFT - 17 - 5/30/2019

Governmental

Activities

Business-Type

Activities Total

Net Position:

Net Investment in Capital Assets 43,776,985 34,996,804 78,773,789

Restricted For:

Capital Projects 1,132,383 0 1,132,383

Debt Service 260,230 3,901,174 4,161,404

Street Repair and Maintenance 330,787 0 330,787

State Highway Improvements 55,851 0 55,851

Court Improvements 1,287,394 0 1,287,394

Alcohol Education and Enforcement 202,533 0 202,533

Other Purposes 822,244 0 822,244

Unrestricted (Deficit) (24,636,178) 51,644,902 27,008,724

Total Net Position 23,232,229$ 90,542,880$ 113,775,109$

See accompanying notes to the basic financial statements


DRAFT - 18 - 5/30/2019

Statement of Activities


Expenses

Charges for

Services and

Sales

Operating

Grants and

Contributions

Capital Grants

and

Contributions


Security of Persons and Property - Police 5,978,760$ 6,020$ 17,450$ 0$

Security of Persons and Property - Fire 7,141,196 1,521,665 0 0

Security of Persons and Property - Other 910,676 873,943 0 0

Public Health and Welfare Services 334,933 57,552 0 0

Leisure Time Activities 415,980 1,386,989 0 0

Community Environment 5,869,580 0 5,283 0

Transportation 3,456,475 34,513 1,006,474 1,584,299

General Government 5,516,227 219,336 0 87,403

Interest and Fiscal Charges 1,019,344 0 0 0

Total Governmental Activities 30,643,171 4,100,018 1,029,207 1,671,702


Sewer 16,127,090 15,405,998 0 0

Water 6,080,070 10,777,054 0 0

Stormwater 803,617 987,240 0 0

Sanitation 1,811,190 1,581,766 0 0

Total Business-Type Activities 24,821,967 28,752,058 0 0

Totals 55,465,138$ 32,852,076$ 1,029,207$ 1,671,702$


Investment Earnings

Program Revenues

General Revenues:

Property Taxes Levied For:

General Purposes

Police Pension

Fire Pension

Municipal Income Taxes

Other Local Taxes

Payments in Lieu of Taxes

Grants and Entitlements not Restricted to Specific Programs

Net Position Beginning of Year, as Restated

Net Position End of Year

Miscellaneous

Total General Revenues and Transfers

Change in Net Position


DRAFT - 19 - 5/30/2019

Governmental

Activities

Business-Type

Activities Total

(5,955,290)$ 0$ (5,955,290)$

(5,619,531) 0 (5,619,531)

(36,733) 0 (36,733)

(277,381) 0 (277,381)

971,009 0 971,009

(5,864,297) 0 (5,864,297)

(831,189) 0 (831,189)

(5,209,488) 0 (5,209,488)

(1,019,344) 0 (1,019,344)

(23,842,244) 0 (23,842,244)

0 (721,092) (721,092)

0 4,696,984 4,696,984

0 183,623 183,623

0 (229,424) (229,424)

0 3,930,091 3,930,091

(23,842,244) 3,930,091 (19,912,153)

1,539,351 0 1,539,351

113,464 0 113,464

113,464 0 113,464

18,386,826 0 18,386,826

391,671 0 391,671

2,660,992 4,620,956 7,281,948

874,366 0 874,366

300,294 601,846 902,140

492,386 0 492,386

24,872,814 5,222,802 30,095,616

1,030,570 9,152,893 10,183,463

22,201,659 81,389,987 103,591,646

23,232,229$ 90,542,880$ 113,775,109$

Net (Expense) Revenue

and Changes in Net Position


DRAFT - 20 - 5/30/2019

Balance Sheet

Governmental Funds

December 31, 2018

General Debt Service

Coleman's

Crossing TIF

Assets:

Cash and Cash Equivalents 7,704,244$ 1$ 714,219$

Cash and Cash Equivalents with Fiscal Agent 96,909 0 0

Receivables:

Municipal Income Taxes 2,931,125 0 0

Accounts 362,608 0 0

Intergovernmental 258,073 0 0

Payments in Lieu of Taxes 0 0 1,060,053

Interest 21,560 0 0

Property Taxes 1,637,914 0 0

Special Assessments 21,645 76,904 0

Interfund Loans Receivables 341,592 0 0

Prepaid Items 249,327 0 815

Total Assets 13,624,997$ 76,905$ 1,775,087$

Liabilities:

Accounts Payable 622,358$ 0$ 0$

Accrued Wages and Benefits Payable 193,486 0 0

Intergovernmental Payable 179,060 0 0

Contracts Payable 0 0 499,182

Retainage Payable 0 0 209,760

Interfund Loans Payable 0 5,000 0

Accrued Interest Payable 0 1,875 0

General Obligation Notes Payable 0 100,000 0

Total Liabilities 994,904 106,875 708,942


Unavailable Amounts 1,641,043 76,904 0

Property Tax for Next Fiscal Year 1,556,125 0 1,060,053

Total Deferred Inflows of Resources 3,197,168 76,904 1,060,053

Fund Balances:

Nonspendable 249,327 0 815

Restricted 0 0 5,277

Committed 2,071,438 0 0

Assigned 46,723 0 0

Unassigned 7,065,437 (106,874) 0

Total Fund Balances 9,432,925 (106,874) 6,092

Total Liabilities, Deferred Inflows of Resources

and Fund Balances 13,624,997$ 76,905$ 1,775,087$



DRAFT - 21 - 5/30/2019

Capital

Improvements

Project (CIP)

Other

Governmental

Funds

Total

Governmental

Funds

1,097,602$ 3,859,328$ 13,375,394$

0 0 96,909

0 0 2,931,125

0 337,936 700,544

0 488,721 746,794

0 0 1,060,053

0 0 21,560

0 251,384 1,889,298

0 0 98,549

0 0 341,592

13,076 32,401 295,619

1,110,678$ 4,969,770$ 21,557,437$

194,105$ 141,406$ 957,869$

0 10,339 203,825

0 8,688 187,748

188,428 89,460 777,070

57,825 0 267,585

0 336,592 341,592

26,435 0 28,310

3,035,000 0 3,135,000

3,501,793 586,485 5,898,999

0 678,675 2,396,622

0 238,802 2,854,980

0 917,477 5,251,602

13,076 32,401 295,619

0 2,974,858 2,980,135

0 490,745 2,562,183

0 0 46,723

(2,404,191) (32,196) 4,522,176

(2,391,115) 3,465,808 10,406,836

1,110,678$ 4,969,770$ 21,557,437$


DRAFT - 22 - 5/30/2019


DRAFT - 23 - 5/30/2019

Reconciliation Of Total Governmental Fund Balances

To Net Position Of Governmental Activities

December 31, 2018

Total Governmental Fund Balances 10,406,836$

Amounts reported for governmental activities in the

statement of net position are different because

Capital Assets used in governmental activities are not

resources and therefore are not reported in the funds. 74,486,893

Other long-term assets are not available to pay for current-

period expenditures and therefore are deferred in the funds.

Municipal Income Taxes 1,144,346

Property Taxes 94,371

Charges for Services 215,116

Special Assessments 98,549

Intergovernmental 844,240

Other Local Taxes 0 2,396,622

The net pension/OPEB liability is not due and payable in the current period;

therefore, the liability and related deferred inflows/outflows are not

reported in governmental funds:

Deferred Outflows - Pension 4,948,862

Deferred Inflows - Pension (1,750,105)

Deferred Outflows - OPEB 2,740,476

Deferred Inflows - OPEB (416,825)

Net Pension Liability (21,828,080)

Net OEPB Liability (19,285,358) (35,591,030)

Accrued interest on outstanding debt is not due and payable in

the current period and, therefore, is not reported in the funds:

it is reported when due. (152,577)

Long-term liabilities, including bonds payable, are not due

and payable in the current period and therefore are not

reported in the funds.

General Obligation Bonds Payable (23,875,389)

Capital Leases Payble (64,864)

Long-Term Loans Payable (790,000)

Long-Term Note Payable (1,800,000)

Compensated Absences Payable (1,784,262) (28,314,515)

Net Position of Governmental Activities 23,232,229$



DRAFT - 24 - 5/30/2019

Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds



Coleman's

Crossing TIF

Revenues:

Property Taxes 1,479,868$ 0$ 0$

Municipal Income Tax 18,769,821 0 0

Other Local Taxes 387,556 0 0

Payments in Lieu of Taxes 0 0 2,660,992

Intergovernmental Revenues 370,485 0 0

Charges for Services 2,508,839 101,500 0

Licenses and Permits 154,937 0 0

Investment Earnings 290,125 0 0

Donations 1 0 0

Fines and Forfeitures 648,152 0 0

All Other Revenue 33,527 0 0

Total Revenue 24,643,311 101,500 2,660,992

Expenditures:

Current:

Security of Persons and Property - Police 5,072,520 0 0

Security of Persons and Property - Fire 5,625,475 0 0

Security of Persons and Property - Other 847,321 0 0

Public Health and Welfare Services 361,226 0 0

Leisure Time Activities 0 0 0

Community Environment 1,289,818 0 4,610,369

Transportation 0 0 0

General Government 4,743,525 0 0

Capital Outlay 0 0 0

Debt Service:

Principal Retirement 0 3,415,000 425,000

Interest and Fiscal Charges 0 679,512 333,095

Total Expenditures 17,939,885 4,094,512 5,368,464

Excess (Deficiency) of Revenues

Over Expenditures 6,703,426 (3,993,012) (2,707,472)


DRAFT - 25 - 5/30/2019

Capital

Improvements

Project (CIP)

Other

Governmental

Funds

Total

Governmental

Funds

0$ 226,928$ 1,706,796$

0 0 18,769,821

0 0 387,556

0 0 2,660,992

6,850 3,140,998 3,518,333

0 266,884 2,877,223

0 377,612 532,549

6,913 3,256 300,294

0 0 1

0 169,341 817,493

115 117,605 151,247

13,878 4,302,624 31,722,305

0 133,128 5,205,648

0 130,099 5,755,574

0 47,179 894,500

0 0 361,226

0 207,967 207,967

0 105,920 6,006,107

0 1,326,628 1,326,628

0 250,164 4,993,689

4,253,394 1,805,972 6,059,366

0 0 3,840,000

26,435 0 1,039,042

4,279,829 4,007,057 35,689,747

(4,265,951) 295,567 (3,967,442)

(Continued)


DRAFT - 26 - 5/30/2019

Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds



Coleman's

Crossing TIF

Other Financing Sources (Uses):

Sale of Capital Assets 17,093 0 0

Special Obligation Bonds Issued 0 0 2,489,293

General Obligation Notes Issued 0 1,800,000 0

Transfers In 43,906 2,091,138 0

Transfers Out (6,759,019) 0 0

Total Other Financing Sources (Uses) (6,698,020) 3,891,138 2,489,293

Net Change in Fund Balances 5,406 (101,874) (218,179)

Fund Balances (Deficit) at Beginning of Year 9,427,519 (5,000) 224,271

Fund Balances (Deficit) End of Year 9,432,925$ (106,874)$ 6,092$



DRAFT - 27 - 5/30/2019

Capital

Improvements

Project (CIP)

Other

Governmental

Funds

Total

Governmental

Funds

0 0 17,093

0 0 2,489,293

0 0 1,800,000

4,391,794 276,087 6,802,925

0 (43,906) (6,802,925)

4,391,794 232,181 4,306,386

125,843 527,748 338,944

(2,516,958) 2,938,060 10,067,892

(2,391,115)$ 3,465,808$ 10,406,836$


DRAFT - 28 - 5/30/2019

Reconciliation Of The Statement Of Revenues, Expenditures

And Changes In Fund Balances Of Governmental Funds

To The Statement Of Activities


Net Change in Fund Balances - Total Governmental Funds 338,944$

Amounts reported for governmental activities in the statement of

activities are different because

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 as depreciation expense. This is the amount

by which capital outlay exceeded depreciation in the current period.

Capital Outlay 8,670,621

Depreciation (4,473,556) 4,197,065

Governmental funds only report the disposal of assets to the extent

proceeds are received from the sale. In the statement of activities, a

gain or loss is reported for each disposal. This is the amount of the loss

on the disposal of capital assets net of proceeds received. (5,357)

Donations of capital assets increase net position in the statement of

activities, but do not appear in the governmental funds because they

are not financial resources. 87,403

Revenues in the statement of activities that do not provide current

financial resources are not reported as revenues in the funds.

Municipal Income Taxes (382,995)

Property Taxes 59,483

Charges for Services 514,315

Special Assessments (1,668)

Intergovernmental (342,195) (153,060)

Contractually required contributions are reported as expenditures in

governmental funds; however, the statement of net position reports

these amounts as deferred outflows:

Pension 1,918,427

OPEB 32,365 1,950,792

Except for amounts reported as deferred inflows/outflows, changes in the

net pension and OPEB liabilities are reported as pension/OPEB expense

in the statement of activities:

Pension (3,314,685)

OPEB (1,677,157) (4,991,842)

(Continued)


DRAFT - 29 - 5/30/2019

The issuance of long-term debt provides current financial resources to

governmental funds, but has no effect on net position. In addition,

repayment of bond, note and capital lease principal is an expenditure in the

governmental funds, but the repayment reduces long-term liabilities in the


Long-Term Note Issued (1,800,000)

Long-Term Note Principal 2,000,000

General Obligation Bonds Issued (2,489,293)

General Obligation Bonds Principal 1,761,875

Long-Term Loan Principal 110,000

Capital Lease Principal 189,874 (227,544)

Interest is reported as an expenditure when due in the governmental

funds but is accrued on outstanding debt on the statement of net position.

Premiums are reported as revenues when the debt is first issued;

however, these amounts are deferred and amortized on the


Accrued Interest Payable (12,177)

Some expenses reported on the statement of activities do not

require the use of current financial resources and, therefore, are

not reported as expenditures in governmental funds.

Increase in Compensated Absences Payable (153,654)

Change in Net Position of Governmental Activities 1,030,570$



DRAFT - 30 - 5/30/2019


DRAFT - 31 - 5/30/2019

Statement of Revenues, Expenditures and Changes in

Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis)

General Fund


Original

Budget Final Budget Actual

Variance with

Final Budget

Positive

(Negative)

Revenues:

Property Taxes 1,531,500$ 1,531,500$ 1,479,868$ (51,632)$

Municipal Income Tax 17,584,100 18,135,100 19,037,168 902,068

Other Local Taxes 440,000 440,000 367,720 (72,280)

Intergovernmental Revenue 372,698 372,698 390,807 18,109

Charges for Services 2,138,529 2,450,093 2,499,446 49,353

Licenses and Permits 154,000 154,000 154,937 937

Investment Earnings 120,000 231,650 232,786 1,136

Donations 0 0 1 1

Fines and Forfeitures 651,500 651,500 647,407 (4,093)

All Other Revenues 21,000 21,000 33,527 12,527

Total Revenues 23,013,327 23,987,541 24,843,667 856,126

Expenditures:

Current:

Security of Persons and Property 12,121,502 12,144,648 11,783,603 361,045

Public Health and Welfare Services 378,000 408,205 379,348 28,857

Community Environment 1,345,275 1,388,062 1,352,231 35,831

General Government 4,837,524 5,008,237 4,856,054 152,183

Total Expenditures 18,682,301 18,949,152 18,371,236 577,916


Over (Under) Expenditures 4,331,026 5,038,389 6,472,431 1,434,042


Sale of Capital Assets 10,000 17,100 17,093 (7)

Transfers In 260,907 260,907 43,906 (217,001)

Transfers Out (4,575,079) (7,464,382) (6,779,474) 684,908

Advances Out (216,667) (216,667) (216,667) 0

Total Other Financing Sources (Uses): (4,520,839) (7,403,042) (6,935,142) 467,900

Net Change In Fund Balance (189,813) (2,364,653) (462,711) 1,901,942

Fund Balance at Beginning of Year 7,605,851 7,605,851 7,605,851 0

Prior Year Encumbrances 374,840 374,840 374,840 0

Fund Balance at End of Year 7,790,878$ 5,616,038$ 7,517,980$ 1,901,942$



DRAFT - 32 - 5/30/2019


Proprietary Funds

December 31, 2018

Sewer Water Stormwater

Assets:

Current Assets:

Cash and Cash Equivalents 19,208,911$ 27,761,201$ 917,162$

Investments 1,897,797 0 0

Receivables:

Accounts 1,909,165 1,126,916 183,915

Intergovernmental 306 314 57

Payments in Lieu of Taxes Receivable 4,592,015 0 0

Interest 27,458 35,323 0

Prepaid Items 77,798 62,211 3,485

Restricted Assets:

Cash and Cash Equivalents with Fiscal Agent 3,901,174 0 0

Total Current Assets 31,614,624 28,985,965 1,104,619

Non Current Assets:

Land 2,533,015 1,662,500 0

Construction in Progress 216,260 4,030,191 15,213

Depreciable Capital Assets, Net 133,558,996 39,207,003 1,426,579

Total Non Current Assets 136,308,271 44,899,694 1,441,792

Total Assets 167,922,895 73,885,659 2,546,411

Deferred Outflows of Resources:

Pension 314,302 317,573 56,999

OPEB 82,047 82,893 14,881

Deferred Loss on Early Retirement of Debt 3,379,409 1,073,034 0

Total Deferred Outflows of Resources 3,775,758 1,473,500 71,880

Liabilities:

Current Liabilities:

Accounts Payable 490,134 225,120 101,912

Accrued Wages and Benefits 46,911 20,504 4,365

Intergovernmental Payable 19,125 15,457 2,989

Contracts Payable 77,068 74,000 0

Retainage Payable 13,377 0 0

Compensated Absences Payable - Current 145,232 101,171 12,275

General Obligation Bonds - Current 210,000 0 0

Mortgage Revenue Bonds - Current 2,376,140 966,082 0

Ohio Public Works Commission Loan - Current 0 29,568 0

Total Current Liabilities 3,377,987 1,431,902 121,541


Enterprise Funds


DRAFT - 33 - 5/30/2019

Sanitation Total

304,418$ 48,191,692$

0 1,897,797

263,968 3,483,964

47 724

0 4,592,015

0 62,781

3,301 146,795

0 3,901,174

571,734 62,276,942

0 4,195,515

1,766 4,263,430

165,102 174,357,680

166,868 182,816,625

738,602 245,093,567

50,914 739,788

13,296 193,117

0 4,452,443

64,210 5,385,348

252,109 1,069,275

3,739 75,519

2,643 40,214

0 151,068

0 13,377

4,859 263,537

0 210,000

0 3,342,222

0 29,568

263,350 5,194,780

(Continued)


DRAFT - 34 - 5/30/2019


Proprietary Funds

December 31, 2018


Long Term Liabilities:

Compensated Absences Payable 102,960 153,977 5,863

Net Pension Liability 1,152,173 1,164,054 208,960

Net OPEB Liability 829,358 837,907 150,415

Accrued Interest Payable 419,454 55,838 0

General Obligation Bonds Payable 9,445,000 0 0

Revenue Bonds Payable 120,508,591 18,260,564 0

OPWC Loans Payable 0 325,251 0

Total Long-Term Liabilities 132,457,536 20,797,591 365,238

Total Liabilities 135,835,523 22,229,493 486,779


Pension 273,910 276,801 49,673

OPEB 61,782 62,419 11,205

Total Deferred Inflows of Resources 335,692 339,220 60,878

Net Position:

Net Investment in Capital Assets 7,070,881 26,317,263 1,441,792

Restricted For:

Debt Service 3,901,174 0 0

Unrestricted 24,555,383 26,473,183 628,842

Total Net Position 35,527,438$ 52,790,446$ 2,070,634$



Enterprise Funds


DRAFT - 35 - 5/30/2019

Sanitation Total

9,628 272,428

186,714 2,711,901

134,400 1,952,080

0 475,292

0 9,445,000

0 138,769,155

0 325,251

330,742 153,951,107

594,092 159,145,887

44,346 644,730

10,012 145,418

54,358 790,148

166,868 34,996,804

0 3,901,174

(12,506) 51,644,902

154,362$ 90,542,880$


DRAFT - 36 - 5/30/2019

Statement of Revenues, Expenses and Changes in Fund Net Position

Proprietary Funds



Operating Revenues:

Charges for Services 15,405,998$ 10,777,054$ 976,068$

Other Operating Revenue 0 0 11,172

Total Operating Revenues 15,405,998 10,777,054 987,240

Operating Expenses:

Personal Services 1,968,721 1,892,348 352,765

Contractual Services 2,954,605 886,801 260,848

Materials and Supplies 649,431 777,810 73,864

Utilities 945,121 148,963 3,626

Depreciation 4,659,116 1,724,645 112,514

Total Operating Expenses 11,176,994 5,430,567 803,617

Operating Income (Loss) 4,229,004 5,346,487 183,623

Nonoperating Revenue (Expenses):

Investment Earnings 270,630 331,216 0

Interest Expense (4,950,096) (649,503) 0

Payments in Lieu of Taxes 4,620,956 0 0

Total Nonoperating Revenues (Expenses) (58,510) (318,287) 0

Change in Net Position 4,170,494 5,028,200 183,623

Net Position Beginning of Year, as Restated 31,356,944 47,762,246 1,887,011

Net Position End of Year 35,527,438$ 52,790,446$ 2,070,634$



Enterprise Funds


DRAFT - 37 - 5/30/2019

Sanitation Total

1,581,710$ 28,740,830$

56 11,228

1,581,766 28,752,058

320,591 4,534,425

1,421,515 5,523,769

35,825 1,536,930

4,421 1,102,131

28,838 6,525,113

1,811,190 19,222,368

(229,424) 9,529,690

0 601,846

0 (5,599,599)

0 4,620,956

0 (376,797)

(229,424) 9,152,893

383,786 81,389,987

154,362$ 90,542,880$


DRAFT - 38 - 5/30/2019

Statement of Cash Flows

Proprietary Funds



Cash Flows from Operating Activities:

Cash Received from Customers $15,580,388 $10,820,743 $982,727

Cash Payments for Goods and Services (4,534,721) (1,857,732) (366,080)

Cash Payments to Employees (1,735,770) (1,699,956) (313,919)

Net Cash Provided (Used)

by Operating Activities 9,309,897 7,263,055 302,728

Cash Flows from Capital and

Related Financing Activities:

Acquisition and Construction of Assets (722,905) (1,152,007) (271,938)

Payments in Lieu of Taxes 3,825,941 0 0

Principal Paid on General Obligation Bonds (210,000) 0 0

Principal Paid on Mortgage Revenue Bonds (2,045,000) (875,000) 0

Principal Paid on

Ohio Public Works Commission Loan 0 (29,568) 0

Interest Paid on All Debt (5,004,014) (688,703) 0

Net Cash Used for Capital

and Related Financing Activities (4,155,978) (2,745,278) (271,938)

Cash Flows from Investing Activities:

Fair Value Markdown of Investments (69,557) 0 0

Investments Purchased (1,077,504) 0 0

Receipts of Interest 242,139 312,336 0


by Investing Activities (904,922) 312,336 0

Net Increase (Decrease) in Cash and Cash Equivalents 4,248,997 4,830,113 30,790

Cash and Cash Equivalents at Beginning of Year 18,861,088 22,931,088 886,372

Cash and Cash Equivalents at End of Year $23,110,085 $27,761,201 $917,162


Enterprise Funds


DRAFT - 39 - 5/30/2019

Sanitation Totals

$1,577,369 $28,961,227

(1,311,181) (8,069,714)

(278,281) (4,027,926)

(12,093) 16,863,587

0 (2,146,850)

0 3,825,941

0 (210,000)

0 (2,920,000)

0 (29,568)

0 (5,692,717)

0 (7,173,194)

0 (69,557)

0 (1,077,504)

0 554,475

0 (592,586)

(12,093) 9,097,807

316,511 42,995,059

$304,418 $52,092,866

(Continued)


DRAFT - 40 - 5/30/2019

Statement of Cash Flows

Proprietary Funds



Reconciliation of Operating Income (Loss) to Net Cash

Provided (Used) by Operating Activities:

Operating Income (Loss) $4,229,004 $5,346,487 $183,623

Adjustments to Reconcile Operating Income (Loss)

to Net Cash Provided (Used) by Operating Activities:

Depreciation Expense 4,659,116 1,724,645 112,514

Changes in Assets and Liabilities:

Decrease (Increase) in Accounts Receivable 174,424 43,718 (4,507)

Decrease in Deferred Outflows of Resources 227,596 240,900 40,474

Increase in Prepaids (15,864) (2,234) (3,043)

Increase (Decrease) in Accounts Payable 34,612 (40,654) (25,223)

Increase (Decrease) in Accrued

Wages and Benefits 24,852 385 (532)

Increase in Compensated Absences 11,319 13,653 3,724

Decrease in Net Pension Liability (442,992) (475,648) (78,285)

Increase in Net OPEB Liability 89,023 89,941 16,146

Increase in Deferred Inflows of Resources 318,807 321,862 57,837

Total Adjustments 5,080,893 1,916,568 119,105


by Operating Activities $9,309,897 $7,263,055 $302,728

Schedule of Noncash Investing, Capital and Financing Activities:

As of December 31, 2018, the Sewer Fund, Water Fund and Stormwater Fund had outstanding liabilities of

liabilities of $112,251, $95,925 and $57,975 , for the purchase of certain capital assets.



Enterprise Funds


DRAFT - 41 - 5/30/2019

Sanitation Totals

($229,424) $9,529,690

28,838 6,525,113

(4,391) 209,244

29,951 538,921

(2,625) (23,766)

152,687 121,422

46 24,751

607 29,303

(54,019) (1,050,944)

14,426 209,536

51,811 750,317

217,331 7,333,897

($12,093) $16,863,587


DRAFT - 42 - 5/30/2019

Statement of Assets and Liabilities

Fiduciary Funds

December 31, 2018

Agency

Assets:

Cash and Cash Equivalents 821,537$

Total Assets 821,537

Liabilities:

Due to Others 821,537

Total Liabilities 821,537$



Notes to the Basic Financial Statements


DRAFT - 43 - 5/30/2019

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Marysville is a charter municipal corporation founded in 1837, with the charter adopted by

the electors on December 1, 1960, and most recently updated on November 3, 2009. The City may

exercise all powers of home rule granted under Article XVIII, Section 3 of the Ohio Constitution not in

conflict with applicable general laws of Ohio.

The City operates under a council/mayor/administrator form of government. Services provided include

general administration as well as police, fire, ambulance, municipal court, engineering, planning and

zoning, street maintenance and repair, parks and recreation, a cemetery, and sanitation, sewer, water, and

storm-water utilities.

The financial statements are presented as of December 31, 2018 and for the year then ended and have

been prepared in conformity with generally accepted accounting principles (GAAP) applicable to local

governments. The Governmental Accounting Standards Board (the "GASB") is the standard-setting body

for establishing governmental accounting and financial reporting principles, which are primarily set forth

in the GASB's Codification of Governmental Accounting and Financial Reporting Standards (GASB

Codification).

A. Reporting Entity

The accompanying basic financial statements comply with the provisions of the GASB Statement

No. 14, "The Financial Reporting Entity," as amended by GASB Statement No. 39 "Determining

Whether Certain Organizations are Component Units," and GASB Statement No. 61 “The

Financial Reporting Entity: Omnibus; an amendment of GASB Statements No. 14 and No. 34,” in

that the financial statements include all organizations, activities, functions and component units

for which the City (the primary government) is financially accountable. Financial accountability

is defined as the appointment of a voting majority of a legally separate organization's governing

body and either (1) the City's ability to impose its will over the organization, or (2) the potential

that the organization will provide a financial benefit to or impose a financial burden on the City.

Based on the foregoing, the City's financial reporting entity has no component units but includes

all funds, agencies, boards and commissions that are part of the primary government, which

include the following services: police and fire protection, parks and recreation, planning, zoning,

street maintenance and other governmental services. In addition, the City owns and operates a

water treatment and distribution system, a wastewater treatment and collection system and

provides refuse collection services all of which are reported as enterprise funds.

The City is associated with the Marysville/Union County Joint Recreation District, the Union

County Community Improvement Corporation, the Mid-Ohio Regional Planning Commission,

the Union County Council of Governments and the Marysville/Union County Port Authority;

each is a jointly governed organization. These organizations are more fully described in Note 20

to the basic financial statements.




DRAFT - 44 - 5/30/2019

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation - Fund Accounting

The accounting policies and financial reporting practices of the City conform to generally

accepted accounting principles as applicable to governmental units.

The accounting system is organized and operated on the basis of funds, each of which is

considered a separate accounting entity. The operations of each fund are accounted for with a

separate set of self-balancing accounts that comprise its assets, deferred outflows of resources,

liabilities, deferred inflows of resources, fund equity, revenues and expenditures (expenses). The

various funds are summarized by type in the basic financial statements. The following fund types

are used by the City:

Governmental Funds

Governmental Funds - Governmental funds are those funds through which most governmental

functions are typically financed. The acquisition, use and balances of the City's expendable

financial resources and the related current liabilities and deferred inflows of resources (except

those accounted for in the proprietary funds) are accounted for through governmental funds. The

measurement focus is upon determination of "financial flow" (sources, uses and balances of

financial resources). The following are the City's major governmental funds:

General Fund - This fund is used to account for all financial resources except those accounted for

in another fund. The General Fund balance is available to the City for any purpose provided it is

expended or transferred according to the general laws of Ohio and the limitations of the City

Charter.

Debt Service Fund – This fund is used to account for resources that are used for payment of

principal, interest and fiscal charges on general obligation debt.

Coleman’s Crossing TIF Fund – This fund is used to account for the debt proceeds used for and

the payments in lieu of tax receipts realized by the development of the Coleman’s Crossing area.

These proceeds will be utilized to repay the debt issued for completion of this project, along with

the compensation payment to the Marysville Exempted School District. Also, with the addition

on the Cook’s Pointe TIF in 2018, this fund was utilized to account for community environment

investments within the northern boundaries of the City.

Capital Improvements Project Fund (CIP) – This fund is used to account for the accumulation of

funds for the acquisition of capital assets and/or the construction of major capital facilities.

The other governmental funds of the City account for grants and other resources whose use is

restricted to a particular purpose.




DRAFT - 45 - 5/30/2019


B. Basis of Presentation - Fund Accounting (Continued)

Proprietary Funds

All proprietary funds are accounted for on an "economic resources" measurement focus. This

measurement focus provides that all assets and deferred outflows of resources and all liabilities

and deferred inflows of resources associated with the operation of these funds are included on the

Statement of Net Position. Proprietary fund type operating statements present increases (i.e.,

revenues) and decreases (i.e., expenses) in total net position.

Enterprise Funds - These funds are used to account for operations that are financed and operated

in a manner similar to private business enterprises, whereby the intent of the governing body is

that the costs (expenses, including depreciation) of providing goods or services to the general

public on a continuing basis be financed or recovered primarily through user charges. The City’s

major enterprise funds are:

Sewer Fund – This fund is used to account for the operation of the City’s sanitary sewer service.

Water Fund – This fund is used to account for the operation of the City’s water service.

Stormwater Fund – This fund is used to account for the operation of the City’s surface water

drainage system.

Sanitation Fund – This fund is used to account for the operation of the City’s sanitation (refuse)

pickup and disposal service.

Fiduciary Funds

Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary

category is split into four classifications: pension trust funds, investment trust funds, private-

purpose trust funds and agency funds. Trust funds are used to account for assets held by the City

under a trust agreement for individuals, private organizations or other governments and therefore

not available to support the City’s own programs. The agency funds are custodial in nature

(assets equal liabilities) and do not involve the measurement of results of operation. These funds

operate on a full accrual basis of accounting. The City has five agency funds. These funds are

used to account for monies received by the City in situations where the City’s role is purely

custodial in nature. The five funds are the Municipal Court Fund, which accounts for monies that

flow through the municipal court office, the Law Library Fund, which is used to account for

monies collected from traffic fines until they are remitted to other entities, the Unclaimed Monies

Fund, where the City is holding unclaimed funds due to others, the Union County Port Authority

Fund and the US 33 Council of Governments Fund.




DRAFT - 46 - 5/30/2019


C. Basis of Presentation – Financial Statements

Government-wide Financial Statements – The Statement of Net Position and the Statement of

Activities display information about the City as a whole. These statements include the financial

activities of the primary government, except for fiduciary funds. The statements distinguish

between those activities of the City that are governmental and those that are considered business-

type activities.

The government-wide statements are prepared using the economic resources measurement focus.

This is the same approach used in the preparation of the proprietary fund financial statements but

differs from the manner in which governmental fund financial statements are prepared.

Governmental fund financial statements therefore include a reconciliation with brief explanations

to better identify the relationship between the government-wide statements and the statements for

governmental funds.

The government-wide Statement of Activities presents a comparison between direct expenses and

program revenues for each segment of the business-type activities of the City and for each

function or program of the City’s governmental activities. Direct expenses are those that are

specifically associated with a service, program or department and therefore clearly identifiable to

a particular function. Program revenues include charges paid by the recipient of the goods or

services offered by the program and grants and contributions that are restricted to meeting the

operational or capital requirements of a particular program. Revenues which are not classified as

program revenues are presented as general revenues of the City, with certain limited exceptions.

The comparison of direct expenses with program revenues identifies the extent to which each

business segment or governmental function is self-financing or draws from the general revenues

of the City.

Fund Financial Statements – Fund financial statements report detailed information about the

City. The focus of governmental fund financial statements is on major funds rather than reporting

funds by type. Each major fund is presented in a separate column. Nonmajor funds are

aggregated and presented in a single column. Fiduciary funds are reported by fund type.

The accounting and financial reporting treatment applied to a fund is determined by its

measurement focus. All governmental fund types are accounted for using a flow of current

financial resources measurement focus. The financial statements for governmental funds are a

balance sheet, which generally includes only current assets and deferred outflows of resources

and current liabilities and deferred inflows of resources, and a statement of revenues,

expenditures and changes in fund balances, which reports on the sources (i.e., revenues and other

financing sources) and uses (i.e., expenditures and other financing uses) of current financial

resources.




DRAFT - 47 - 5/30/2019


C. Basis of Presentation – Financial Statements (Continued)

All proprietary fund types are accounted for on a flow of economic resources measurement focus.

With this measurement focus, all assets and deferred outflows of resources and all liabilities and

deferred inflows of resources associated with the operation of these funds are included on the

Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net

Position presents increases (i.e., revenues) and decreases (i.e., expenses) in total net position. The

Statement of Cash Flows provides information about how the City finances and meets the cash

flow needs of its proprietary activities.

D. Basis of Accounting

Basis of accounting represents the methodology utilized in the recognition of revenues and

expenditures or expenses in the accounts and reported in the financial statements, and relates to

the timing of the measurements made. The accounting and reporting treatment applied to a fund

is determined by its measurement focus.

The modified accrual basis of accounting is followed by the governmental funds. Under the

modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both

measurable and available. Revenue resulting from exchange transactions, in which each party

gives and receives essentially equal value, is recorded on the modified accrual basis when the

exchange takes place and the resources are available. The term "available" means collectible

within the current period or soon enough thereafter to be used to pay liabilities of the current

period, which for the City is 60 days after year end. Expenditures are recognized in the

accounting period in which the fund liability is incurred, if measurable, except for unmatured

interest on general long-term debt which is recognized when due.

Non-exchange transactions, in which the City receives value without directly giving equal value

in return, include income taxes, property taxes, payments in lieu of taxes, grants, entitlements and

donations. Revenue from income taxes is recognized in the period in which the income is earned

and is available. Revenue from grants, entitlements and donations is recognized in the fiscal year

in which all eligibility requirements have been satisfied and the revenue is available. Eligibility

requirements include timing requirements, which specify the year when the resources are required

to be used or the year when use is first permitted, matching requirements, in which the City must

provide local resources to be used for a specific purpose, and expenditure requirements, in which

the resources are provided to the City on a reimbursement basis. Revenue considered susceptible

to accrual at year end includes income taxes withheld by employers, interest on investments, state

levied locally shared taxes (including motor vehicle license fees and local government

assistance). Licenses, permits, charges for service and other miscellaneous revenues are recorded

as revenue when received in cash because generally this revenue is not measurable until received.




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D. Basis of Accounting (Continued)

Special assessment installments, which are measurable, but not available at December 31, are

recorded as deferred inflow of resources – unavailable amount. Property taxes measurable as of

December 31, 2018, but which are not intended to finance 2018 operations and delinquent

property taxes, whose availability is indeterminate, are recorded as deferred inflow of resources

as further described in Note 6 “Taxes”.

The accrual basis of accounting is utilized for reporting purposes by the proprietary funds and

fiduciary funds. Revenues are recognized when they are earned and expenses recognized when

incurred.

E. Deferred Inflows/Outflows of Resources

In addition to assets, the statements of financial position will sometimes report a separate section

for deferred outflows of resources. Deferred outflows of resources, represents a consumption of

net position that applies to a future period and will not be recognized as an outflow of resources

(expenses/expenditures) until then. For the City, deferred outflows related to pension/OPEB are

explained in notes 11 and 12.

In addition to liabilities, the statement of financial position will sometimes report a separate

section for deferred inflows of resources. This separate financial statement element, deferred

inflows of resources, represents an acquisition of net position that applies to a future period(s) and

so will not be recognized as an inflow of resources (revenue) until that time. On the government-

wide statement of net position and governmental funds balance sheet, property taxes that are

intended to finance future fiscal periods are reported as deferred inflows. In addition, the

governmental funds balance sheet reports deferred inflows which arise only under a modified

accrual basis of accounting. Accordingly, the item, unavailable amounts, is reported only in the

governmental funds balance sheet. The governmental funds report unavailable amounts for

delinquent property taxes, income taxes, special assessments, charges for services, interest and

state levied shared taxes. These amounts are deferred and recognized as an inflow of resources in

the period that the amounts become available. Deferred inflows of resources related to

pension/OPEB are reported on the government-wide statement of net position. (See Note 11 and

12)




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F. Budgetary Process

The budgetary process is prescribed by provisions of the Ohio Revised Code and entails the

preparation of budgetary documents within an established timetable. The major documents

prepared are the tax budget, the certificate of estimated resources and the appropriation

ordinance, all of which are prepared on the budgetary basis of accounting. The certificate of

estimated resources and the appropriation ordinance are subject to amendment throughout the

year.

All funds other than agency funds are legally required to be budgeted and appropriated; however,

only governmental funds are required to be reported. The only funds required to be reported in

the basic financial statements are the General Fund and any major special revenue funds. The

primary level of budgetary control is at the object level within each department. Budgetary

modifications may be made only by ordinance of the City Council.

1. Tax Budget

The Director of Finance and the City Manager submit an annual tax budget for the following

fiscal year to City Council by July 15 for consideration and passage. The adopted budget is

submitted to the County Auditor, as Secretary of the County Budget Commission, by July 20 of

each year for the period January 1 to December 31 of the following year.

The budget commission has waived the filing of the budget.




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F. Budgetary Process (Continued)

2. Estimated Resources

The County Budget Commission reviews estimated revenue and determines if the budget

substantiates a need to levy all or part of previously authorized taxes. The Budget Commission

then certifies its actions to the City by October 1 of each year. As part of the certification

process, the City receives an official certificate of estimated resources stating the projected

receipts by fund. Prior to December 31, the City must revise its budget so that the total

contemplated expenditures from any fund during the ensuing fiscal year do not exceed the

amount available as stated in the certificate of estimated resources. The revised budget then

serves as the basis for the annual appropriations measure. On or about January 1, the certificate

of estimated resources is amended to include any unencumbered fund balances from the

preceding year. The certificate may be further amended during the year if a new source of

revenue is identified or if actual receipts exceed current estimates. The amounts reported on the

budgetary statement reflect the amounts in the final amended official certificate of estimated

resources issued during 2018.

3. Appropriations

A temporary appropriation ordinance to control expenditures may be passed on or about January

1 of each year for the period January 1 through March 31. An annual appropriation ordinance

must be passed by April 1 of each year for the period January 1 through December 31. The

appropriation ordinance establishes spending controls at the fund, department and object level,

the legal level of control. The appropriation ordinance may be amended during the year as

additional information becomes available, provided that total fund appropriations do not exceed

the current estimated resources as certified by the County Budget Commission. The allocation of

appropriations among departments and objects within a fund may be modified during the year by

an ordinance of City Council. During 2018, several supplemental appropriations were necessary

to budget the use of contingency funds, intergovernmental grant proceeds and capital

improvement projects. Administrative control is maintained through the establishment of more

detailed line-item budgets. The budgetary figures which appear in the "Statement of Revenues,

Expenditures, and Changes in Fund Balances--Budget and Actual--General Fund" are provided

on the budgetary basis to provide a comparison of actual results with the final budget, including

all amendments and modifications.

4. Encumbrances

As part of formal budgetary control, purchase orders, contracts and other commitments for

expenditures are encumbered and recorded as the equivalent of expenditures (budget basis) in

order to reserve that portion of the applicable appropriation and to determine and maintain legal

compliance. However, on the GAAP basis of accounting, encumbrances do not constitute

expenditures or liabilities and are reported as part of fund balances in the accompanying basic

financial statements.




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5. Lapsing of Appropriations

At the close of each fiscal year, the unencumbered balance of each appropriation reverts to the

respective fund from which it was appropriated and becomes subject to future appropriations.

The encumbered appropriation balance is carried forward to the subsequent fiscal year and need

not be reappropriated.

6. Budgetary Basis of Accounting

The City's budgetary process accounts for certain transactions on a basis other than generally

accepted accounting principles (GAAP). The major differences between the budgetary basis and

the GAAP basis lie in the manner in which revenues and expenditures are recorded. Under the

budgetary basis, revenues and expenditures are recognized on a cash basis. Utilizing the cash

basis, revenues are recorded when received in cash and expenditures when paid. Under the

GAAP basis, revenues and expenditures are recorded on the modified accrual basis of accounting.

On the budgetary basis investment earnings are recognized when realized, whereas on a GAAP

basis unrealized gains and losses are recognized when investments are adjusted to fair value.

This space intentionally left blank.




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6. Budgetary Basis of Accounting (Continued)

The following table summarizes the adjustments necessary to reconcile the GAAP basis

statements to the budgetary basis statements for the General Fund: Net Change In Fund Balance

General

Fund

GAAP Basis (as reported) $5,406

Increase (Decrease):

Accrued Revenues at

December 31, 2018

received during 2019 (2,377,349)

Accrued Revenues at

December 31, 2017

received during 2018 2,408,510

Accrued Expenditures at

December 31, 2018

paid during 2019 994,904

Accrued Expenditures at

December 31, 2017

paid during 2018 (1,142,523)

2017 Prepaids for 2018 133,999

2018 Prepaids for 2019 (249,327)

2017 Adjustment to Fair Value (97,260)

2018 Adjustment to Fair Value 49,788

Outstanding Encumbrances (215,364)

2017 Cash With Fiscal Agent 112,306

2018 Cash With Fiscal Agent (96,909)

Perspective Difference:

Activity of Funds Reclassified

for GAAP Reporting Purposes 11,108

Budget Basis ($462,711)




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G. Cash and Cash Equivalents

Cash and cash equivalents include amounts in demand deposits, the State Treasury Asset Reserve

(STAR Ohio) and certificates of deposit with original maturity dates of three months or less. The

STAR Ohio is considered an investment for purposes of GASB Statement No. 3, but it is reported

as a cash equivalent in the basic financial statements because it is a highly liquid instrument

which is readily convertible to cash. The City also invests in STAR Plus, a federally insured cash

account powered by the Federally Insured Cash Account (FICA) program. STAR Plus enables

political subdivisions to generate a competitive yield on cash deposits in a network of carefully

selected FDIC-insured banks via a single, convenient account. All deposits with STAR Plus have

full FDIC insurance, with no term commitment on deposits. The City pools its cash for

investment and resource management purposes. Each fund's equity in pooled cash and

investments represents the balance on hand as if each fund maintained its own cash and

investment account. For purposes of the Statement of Cash Flows, the proprietary funds' shares

of equity in pooled certificates of deposit are considered to be cash equivalents. See Note 5,

"Cash, Cash Equivalents and Investments." Investment earnings of $255,119 earned by other

funds were credited to the General Fund as required by local statute.

H. Investments

Investment procedures and interest allocations are restricted by provisions of the Ohio

Constitution and the Ohio Revised Code. The City allocates interest among certain funds based

upon percentages mandated by City ordinance. In accordance with GASB Statement No. 31,

“Accounting and Financial Reporting for Certain Investments and for External Investment

Pools”, the City records all its investments at fair value except for nonparticipating investment

contracts (certificates of deposit) which are reported at cost, which approximates fair value. All

investments, other than certificates of deposit, are considered, including those with a maturity of

one year or less, and included in the calculation of the change in fair value. Fair value is

determined by quoted market prices. See Note 5, "Cash, Cash Equivalents and Investments."

The City has invested funds in the STAR Ohio during 2018. STAR Ohio is an investment pool

managed by the State Treasurer’s Office which allows governments within the State to pool their

funds for investment purposes. STAR Ohio is not registered with the SEC as an investment

company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act

of 1940. Investments in STAR Ohio are valued at STAR Ohio’s share price which is the price

the investment could be sold for on December 31, 2018.

I. Prepaid Items

Payments made to vendors for services that will benefit periods beyond December 31, 2018, are

recorded as prepaid items using the consumption method. A current asset for the prepaid amount

is recorded at the time of the purchase and an expenditure/expense is reported in the year in

which services are consumed.


Notes to the Basic Financial Statements For the Year Ended December 31, 2018

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J. Capital Assets and Depreciation

Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000.

1. Property, Plant and Equipment - Governmental Activities

Governmental activities capital assets are those not directly related to the business type funds. These generally are acquired or constructed for governmental activities and are recorded as expenditures in the governmental funds and are capitalized at cost (or estimated historical cost for assets not purchased in recent years). These assets are reported in the Governmental Activities column of the Government-wide Statement of Net Position, but they are not reported in the Fund Financial Statements. All infrastructure acquired prior to the implementation of GASB Statement No. 34, “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments”, has been reported.

Donated capital assets are recorded at acquisition value at the date received. Capital assets include land, construction in progress, buildings, building improvements, machinery, equipment and infrastructure. Infrastructure is defined as long-lived capital assets that normally are stationary in nature and normally can be preserved for a significant number of years. Examples of infrastructure include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Estimated historical costs for governmental activities capital asset values were initially determined by identifying historical costs when such information was available. In cases where information supporting original cost was not obtainable, estimated historical costs were developed. For certain capital assets, the estimates were arrived at by indexing estimated current costs back to the estimated year of acquisition.

2. Property, Plant and Equipment – Business Type Activities

Contributed capital assets are recorded at acquisition value at the date received. Capital assets include land, construction in progress, buildings, building improvements, machinery, equipment, vehicles and infrastructure. Infrastructure is defined as long-lived capital assets that normally are stationary in nature and normally can be preserved for a significant number of years. Examples of infrastructure include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems.

Property, plant and equipment acquired by the proprietary funds are stated at cost (or estimated historical cost), including interest capitalized during construction and architectural and engineering fees where applicable. Contributed capital assets are recorded at acquisition value at the date received. These assets are reported in both the Business-Type Activities column of the Government-wide Statement of Net Position and in the respective funds.




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J. Capital Assets and Depreciation (Continued)

3. Depreciation

All capital assets are depreciated, excluding land and construction in progress. Depreciation has

been provided using the straight-line method over the following estimated useful lives:

Description

Governmental and


Estimated Lives (in years)

Buildings 40

Improvements other than Buildings/Infrastructure 10 - 15

Infrastructure 10 - 40

Machinery and Equipment 5 - 10

Vehicles 5 – 10

K. Long-Term Debt

Long-term liabilities are being repaid from the following funds:

Obligation Fund

General Obligation Bonds Debt Service Fund

Mortgage Revenue Bonds Water Fund

Sewer Fund

Capital Leases General Fund

Long-Term Loan Payable

Debt Service Fund

Long-Term Notes Payable

Debt Service Fund

Ohio Public Works

Commission Loans

Water Fund

Sewer Fund

Compensated Absences General Fund

Street Maintenance Fund

Water Fund

Sewer Fund

Sanitation Fund

Stormwater Fund

Pension and OPEB Liabilities

General Fund

Water Fund

Sewer Fund

Sanitation Fund

Stormwater Fund




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L. Compensated Absences

Employees of the City earn vacation leave at various rates within limits specified under collective

bargaining agreements or under statute.

The rate of cash compensation for sick leave payout varies within specified limits under

collective bargaining agreements or under law. Employees are paid 25% of the accumulated sick

time upon retirement. Employees are eligible for retirement at any age with at least 10 years of

service. Compensation for sick leave is paid at the employee's full rate of pay at the time of

termination or retirement.

In accordance with GASB Statement No. 16, "Accounting for Compensated Absences," the City

records a liability for vacation time and sick leave when the obligation is attributable to services

previously rendered or to rights that vest or accumulate, and when payment of the obligation is

probable and can be reasonably determined.

For governmental funds, that portion of unpaid compensated absences that has matured is

reported as an expenditure in the fund from which the individual earning the leave is paid, and a

corresponding liability is reflected in the account “Compensated Absences Payable.” In the

government wide Statement of Net Position, “Compensated Absences Payable” is recorded

within the “Due Within One Year” account and the long-term portion of the liability is recorded

within the “Due in More Than One Year” account. Compensated absences are expensed in the

proprietary funds when earned and the related liability is reported within the fund.

M. Net Position

Net position represents the difference between assets plus deferred outflows of resources and

liabilities plus deferred inflow of resources. Net investment in capital assets consists of capital

assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings

used for the acquisition, construction of improvement of those assets. Net position is reported as

restricted when there are limitations imposed on their use either through the enabling legislation

adopted by the City or through external restrictions imposed by creditors, grantors or laws or

regulations of other governments.

The City applies restricted resources when an expense is incurred for purposes for which both

restricted and unrestricted net position is available.



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N. Fund Balances

In the fund financial statements, fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. Fund balance is reported in five components – nonspendable, restricted, committed, assigned and unassigned.

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

Restricted – Restricted fund balance consists of amounts that have constraints placed on them either externally by third parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from external resource providers) and includes a legally enforceable requirement (compelled by external parties) that those resources be used only for the specific purposes stipulated in the legislation.

Committed – Committed fund balance consists of amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City’s highest level of decision making authority. For the City, these constraints consist of ordinances passed by City Council. Committed amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action (ordinance) it employed previously to commit those amounts.

Assigned – Assigned fund balance consists of amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. The City has no formal policy authorizing a body or official to assign amounts for specific purposes.

Unassigned – Unassigned fund balance consists of amounts that have not been restricted, committed or assigned to specific purposes within the General Fund as well as negative fund balances in all other governmental funds.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. The City has a target minimum fund balance policy for the General Fund of $3.5 million.

O. Pensions/Other Postemployment Benefits (OPEB)

For purposes of measuring the net pension/OPEB liability, deferred outflows of resources and deferred inflows of resources related to pensions/OPEB, and pension/OPEB expense, information about the fiduciary net position of the pension/OPEB plans and additions to/deductions from their fiduciary net positon have been determined on the same basis as they are reported by the pension/OPEB plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. The pension/OPEB plans report investments at fair value.




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P. Interfund Activity

Exchange transactions between funds are reported as revenues in the seller funds and as

expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another

without a requirement for repayment are reported as interfund transfers. Interfund transfers are

reported as other financing sources/uses in governmental funds and after nonoperating

revenues/expenses in proprietary funds. Repayments from funds responsible for particular

expenditures/expenses to the funds that initially paid for them are not presented on the financial

statements. Interfund services provided and used are not eliminated in the process of

consolidation.

Transfers between governmental and business-type activities on the government-wide statements

are reported in the same manner as general revenues. In addition, interfund transfers between

governmental funds are eliminated for reporting on the government-wide financial statements.

Only transfers between governmental activities and business-type activities are reported on the

Statement of Activities.

Q. Estimates

The preparation of financial statements in conformity with generally accepted accounting

principles requires management to make estimates and assumptions that affect the amounts

reported in the financial statements and accompanying notes. Actual results may differ from

those estimates.

R. Operating Revenues and Expenses

Proprietary funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues are those revenues that are generated directly from the primary activity of the

proprietary funds. For the City, these revenues are charges for services for water treatment and

distribution, wastewater collection and treatment, maintenance of storm water collection systems,

and collection of solid waste refuse. Operating expenses are necessary costs incurred to provide

the good or service that is the primary activity of the fund. All revenues and expenses not

meeting this definition are reported as nonoperating revenues and expenses.

S. Extraordinary and Special Items

Extraordinary items are transactions or events that are both unusual in nature and infrequent in

occurrence. Special items are transactions or events that are within the control of the City

Council and that are either unusual in nature or infrequent in occurrence. Neither type of

transaction occurred during fiscal year 2018.

U. Fair Value

The City categorizes its fair value measurements within the fair value hierarchy established by

generally accepted accounting principles. The hierarchy is based on the valuation inputs used to

measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for

identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are

significant unobservable inputs.




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NOTE 2 – CHANGE IN ACCOUNTING PRINCIPLE AND RESTATEMENT OF NET

POSITION/FUND BALANCE

For 2018, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 75,

“Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,” Statement No.

85, “Omnibus 2017,” and Statement No. 86, “Certain Debt Extinguishment Issues.”

GASB Statement No. 75 addresses accounting and financial reporting for OPEB that is provided to the

employees of state and local governmental employers. This Statement establishes standards for

recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and

expense/expenditures related to OPEB.

GASB Statement No. 85 addresses a variety of topics including issues related to blending component

units, goodwill, fair value measurement and application, and postemployment benefits (pensions and

other postemployment benefits). The implementation of GASB Statement No. 85 did not have an effect

on the financial statements of the City.

GASB Statement No. 86 improves consistency in accounting and financial reporting for in-substance

defeasance of debt by providing guidance for transactions in which cash and other monetary assets

acquired with only existing resources—resources other than the proceeds of refunding debt—are placed

in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves

accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to

financial statements for debt that is defeased in substance. The implementation of GASB Statement No.

86 did not have an effect on the financial statements of the City.

The implementation of GASB 75 had the following effect on net position as reported December 31, 2017:

Governmental Business-type Sewer Water

Activities Activities Fund Fund

Net Position/Fund Balance December 31, 2017 $37,518,574 $83,110,422 $32,087,906 $48,500,577

Adjustments:

Net OPEB Liability (15,382,785) (1,742,544) (740,335) (747,966)

Deferred Outflow - Payments Subsequent

to the Measurement Date 65,870 22,109 9,373 9,635

Restated Net Position/Fund Balance December 31, 2017 $22,201,659 $81,389,987 $31,356,944 $47,762,246

Storm Water Sanitation

Fund Fund

Fund Balance December 31, 2017 $2,019,593 $502,346

Adjustments:

Net OPEB Liability (134,269) (119,974)

Deferred Outflow - Payments Subsequent

to the Measurement Date 1,687 1,414

Restated Fund Balance December 31, 2017 $1,887,011 $383,786

Other than employer contributions subsequent to the measurement date, the City made no restatement for

deferred inflows/outflows of resources as the information needed to generate these restatements was not

available.




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NOTE 3 - COMPLIANCE AND ACCOUNTABILITY

A. Fund Deficits

The fund deficits at December 31, 2018 of $2,391,115 in the Capital Improvements Project (CIP)

Fund, (capital projects fund) arose from the recording of general obligation notes payable within

the individual fund. The fund deficit of $24,576 in the City Events Fund (special revenue fund)

arose from the recognition of expenditures on the modified accrual basis of accounting which are

greater than expenditures recognized on the budgetary basis. The fund deficit of $106,874 in the

Debt Service Fund arose from the recording of an interfund loan payable within the fund. The

General Fund provides transfers when cash is required, not when accruals occur.




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NOTE 4 – FUND BALANCE CLASSIFICATION

Fund balance is classified as nonspendable, restricted, committed, assigned and unassigned based

primarily on the extent to which the City is bound to observe constraints imposed upon the use of the

resources in the governmental funds. The constraints placed on fund balance for the major governmental

funds and all other governmental funds are presented below:

Debt Coleman's Capital Other Total

General Service Crossing TIF Improvements Governmental Governmental

Fund Fund Fund Project Fund (CIP) Funds Funds

Nonspendable:

Prepaid Items $249,327 $0 $815 $13,076 $32,401 $295,619

Restricted:

Coleman's Crossing TIF 0 0 5,277 0 0 5,277

Street Maintenance 0 0 0 0 118,958 118,958

Police Pension 0 0 0 0 17,031 17,031

Fire Pension 0 0 0 0 17,031 17,031

Police Grant 0 0 0 0 12,855 12,855

Fire Grant 0 0 0 0 11,788 11,788

Law Enforcement Trust 0 0 0 0 205,966 205,966

Mandatory Drug Fine 0 0 0 0 113,930 113,930

Alcohol Treatment and Education 0 0 0 0 33,127 33,127

Indigent Drivers Treatment 0 0 0 0 169,406 169,406

State Highway Improvements 0 0 0 0 32,504 32,504

Federal Law Enforcement 0 0 0 0 1,248 1,248

ODNR Grant 0 0 0 0 7,253 7,253

Town Run Restoration 0 0 0 0 7,451 7,451

Court Computer and Research 0 0 0 0 338,867 338,867

Municipal Court Computer 0 0 0 0 159,619 159,619

Municipal Court Special Projects 0 0 0 0 520,449 520,449

Court Probation Fee 0 0 0 0 268,459 268,459

CHIP Grant 0 0 0 0 50,389 50,389

Safe Routes to School 0 0 0 0 3,676 3,676

Municipal Court Local Interlock 0 0 0 0 173,958 173,958

Municipal Court State Interlock 0 0 0 0 227,699 227,699

OPWC Grant 0 0 0 0 96,914 96,914

CDBG Formula Grant 0 0 0 0 18,411 18,411

City Development Grant 0 0 0 0 23,996 23,996

Northwest 33 Grant 0 0 0 0 343,873 343,873

Total Restricted 0 0 5,277 0 2,974,858 2,980,135

Committed:

Incentive Funds 20,688 0 0 0 0 20,688

Capital Reserve 2,000,000 0 0 0 0 2,000,000

Accrued Leave 50,750 0 0 0 0 50,750

Swimming Pool 0 0 0 0 6,651 6,651

Street Tree 0 0 0 0 191,691 191,691

Parkland Development 0 0 0 0 218,526 218,526

Eljer Park 0 0 0 0 31,523 31,523

Cemetery Maintenance 0 0 0 0 31,044 31,044

Cemetery Endowment 0 0 0 0 11,310 11,310

Total Committed 2,071,438 0 0 0 490,745 2,562,183

Assigned:

Purchase Orders 46,723 0 0 0 0 46,723

Total Assigned 46,723 0 0 0 0 46,723

Unassigned 7,065,437 (106,874) 0 (2,404,191) (32,196) 4,522,176

Total Fund Balances $9,432,925 ($106,874) $6,092 ($2,391,115) $3,465,808 $10,406,836

Fund Balances




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NOTE 5 - CASH, CASH EQUIVALENTS AND INVESTMENTS

Cash resources of several individual funds are combined to form a pool of cash and investments.

Statutes require the classification of funds held by the City into three categories:

Category 1 consists of "active" funds - those funds required to be kept in "cash" or "near cash" status for

immediate use by the City. Such funds must be maintained either as cash in the City Treasury or in

depository accounts payable or withdrawable on demand, including negotiable order of withdrawal

(NOW) accounts.

Category 2 consists of "inactive" funds - those funds not required for use within the current five year

period of designation of depositories. Inactive funds may be deposited or invested only as certificates of

deposit maturing no later than the end of the current period of designation of depositories.

Category 3 consists of "interim" funds - those funds not needed for immediate use but needed before the

end of the current period of designation of depositories. Interim funds may be invested or deposited in

the following securities:

United States treasury notes, bills, bonds, or any other obligation or security issued by the

United States treasury or any other obligation guaranteed as to principal or interest by the

United States;




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NOTE 5 - CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)

Bonds, notes, debentures, or any other obligations or securities issued by any federal

government agency or instrumentality, including but not limited to, the federal national

mortgage association, federal home loan bank, federal farm credit bank, federal home loan

mortgage corporation, government national mortgage association, and student loan marketing

association. All federal agency securities shall be direct issuances of federal government

agencies or instrumentalities;

Written repurchase agreements in the securities listed above provided that the market value of

the securities subject to the repurchase agreement must exceed the principal value of the

agreement by at least two percent and be marked to market daily, and that the term of the

agreement must not exceed thirty days;

Interim deposits in eligible institutions applying for interim funds;

Bonds and other obligations of the State of Ohio;

No-load money market mutual funds consisting exclusively of obligations described in the

first two bullets of this section and repurchase agreements secured by such obligations,

provided that investments in securities described in this division are made only through

eligible institutions, and

The State Treasury Asset Reserve of Ohio (STAR Ohio).

Certain bankers’ acceptances and commercial paper notes for a period not to exceed one

hundred and eighty days from the date of purchase in an amount not to exceed twenty-five

percent of the interim moneys available for investment at any one time.

A. Deposits

Custodial credit risk is the risk that, in the event of a bank failure, the City’s deposits may not be

returned. The City’s policy is to place deposits with major local banks.

Ohio law requires that deposits be either insured or be protected by eligible securities pledged to

the City and deposited with a qualified trustee by the financial institution as security for

repayment whose market value at all times shall be at least 105 percent of the deposits being

secured, or participation in the Ohio Pooled Collateral System (OPCS), a collateral pool of

eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to

secure the repayment of all public monies deposited in the financial institution. OPCS requires

the total market value of the securities pledged to be 102 percent of the deposits being secured or

a rate set by the Treasurer of State. Although all statutory requirements for the deposit of money

had been followed, noncompliance with Federal requirements could potentially subject the City

to a successful claim by the FDIC.




DRAFT - 64 - 5/30/2019


A. Deposits (Continued)

At year end the carrying amount of the City's deposits was $15,739,280 and $15,438,711 of the

City’s bank balance of $16,438,711 was exposed to custodial credit risk because it was uninsured

and collateralized with securities held by the pledging financial institution’s trust department or

agent, not in the City’s name.

B. Investments

The City's investments at December 31, 2018 are summarized below:

Fair Value

Fair Value Credit Rating Hierarchy less than 1 1-3 3-5

STAR Ohio * $16,522,365 AAAm1

N/A $16,522,365 $0 $0

FNMA 7,490,999 AAA1

/ Aaa2

Level 2 717,440 6,773,559 0

FHLMC 3,081,550 AAA1

/ Aaa2

Level 2 0 3,081,550 0

FHLB 6,134,733 AAA1

/ Aaa2

Level 2 900,688 4,488,305 745,740

Commercial Paper 5,519,276 AAA1

/ Aaa2

Level 2 5,519,276 0 0

U.S. Treasury Notes 7,138,512 AAA1

/ Aaa2

Level 1 7,138,512 0 0

U.S. Treasury Bills 2,163,205 AAA1

/ Aaa2

Level 2 2,163,205 0 0

Negotiable CD's 4,494,583 AAA1

/ Aaa2

Level 2 2,060,735 2,433,848 0

Total Investments $52,545,223 $35,022,221 $16,777,262 $745,740

Investment Maturities (in Years)

* STAR Ohio is reported at its share price (Net Asset Value per Share).

Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect

the fair value of an investment. In accordance with the investment policy, the City manages its

exposure to declines in fair values by limiting the weighted average maturity of its investment

portfolio.

Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will not

fulfill its obligations. While the City has no policy, it limits its investments to mutual funds,

negotiable CD’s, U.S. Government Agency Securities, Commercial Paper, Banker’s Acceptances

and STAR Ohio. Investments in U.S. Government Agency Securities and negotiable certificates

of deposit were rated AAA by Standard and Poor’s. Investments in STAR Ohio were rated

AAAm by Standard & Poor’s. Investments in commercial paper were rated A-1+ by Standard

and Poor’s.




DRAFT - 65 - 5/30/2019


B. Investments (Continued)

Custodial Credit Risk – For an investment, custodial credit risk is the risk that, in the event of the

failure of the counterparty, the City will not be able to recover the value of its investments or

collateral securities that are in the possession of an outside party. For deposits, custodial credit

risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it.

The City does not have a policy for custodial credit risk.

Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the

magnitude of a government’s investment in a single issuer. The City’s investment policy allows

investments in money market accounts, certificates of deposit or within financial institutions

within the State of Ohio as designated by the Federal Reserve Board. The City has invested 14%

of its investments in FNMA, 6% in FHLMC, 12% in FHLB, 11% in Commercial Paper, 14% in

Treasury Notes, 4% in Treasury Bills, 8% in negotiable CD’s and 31% in STAR Ohio.

NOTE 6 - TAXES

A. Property Taxes

Property taxes include amounts levied against all real estate and public utility property, and

tangible personal property used in business and located in the City. Real property taxes (other

than public utility) collected during 2018 were levied after October 1, 2017 on assessed values as

of January 1, 2017, the lien date. Assessed values were established by the County Auditor at 35%

of appraised market value. All property is required to be reappraised every six years, and

equalization adjustments are made in the third year following reappraisal. The last revaluation

was completed in 2013 and the equalization adjustment was completed in 2016. Real property

taxes are payable annually or semi-annually. The first payment is due January 20; the remainder

is payable by June 20.




DRAFT - 66 - 5/30/2019

NOTE 6 - TAXES (Continued)

A. Property Taxes (Continued)

Public utility real property taxes collected in one calendar year are levied in the preceding

calendar year on assessed values determined as of December 31 of the second year preceding the

tax collection year, the lien date. Certain public utility tangible personal property is currently

assessed at 100% of its true value. Public utility property taxes are payable on the same dates as

real property taxes described previously.

The County Treasurer collects property taxes on behalf of all taxing districts in the County

including the City of Marysville. The County Auditor periodically remits to the City its portion

of the taxes collected.

The full tax rate for the City's operations for the year ended December 31, 2018 was $5.20 per

$1,000 of assessed value. The assessed value upon which the 2018 receipts were based was

$418,841,690. This amount constitutes $406,186,210 in real property assessed value and

$12,655,480 in public utility assessed value.

Ohio law prohibits taxation of property from all taxing authorities in excess of 1% of assessed

value without a vote of the people. Under current procedures, the City's share is .52% (5.20

mills) of assessed value.

B. Income Tax

The City levies an income tax of 1.5 percent on all income earned within the City as well as on

incomes of residents earned outside the City. Prior to January 1, 2005, the City allowed a credit

of up to 50 percent of the tax paid to another municipality, not to exceed the amount owed for

incomes of residents earned outside the City. Effective January 1, 2005 this credit was repealed

making the tax owed by all residents of the City a full 1.5% of earned income. Employers within

the City are required to withhold income tax on employee earnings and remit the tax to the City

on a monthly or quarterly basis depending on the amount being withheld. Corporations and other

individual taxpayers are also required to pay their estimated tax at least quarterly and file a final

return annually. Income tax revenues and expenditures for collecting, administering, and

enforcing the tax are recorded in the General Fund. Filing is required and returns are due by

April 15.




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NOTE 7 – TAX ABATEMENT DISCLOSURES

As of December 31, 2018, the City of Marysville provides tax incentives under two programs: Enterprise

Zone (EZ) and Community Reinvestment Area (CRA).

Real Estate Tax Abatements

Pursuant to Ohio Revised Code Chapter 5709, the City established a Community Reinvestment area in

2002 and an Enterprise Zone in 1990, both of which included certain land within the boundaries of the

City of Marysville. The City of Marysville authorizes incentives through the passage of public

ordinances, based upon each businesses investment criteria, and through a contractual application process

with each business, including proof that the improvements have been made. The abatement equals an

agreed upon percentage of the additional property tax resulting from the increase in assessed value as a

result of the improvements. The amount of the abatement is deducted from the recipient’s property tax

bill. The establishment of the CRA and EZ gave the City the ability to maintain and expand businesses

located in the City and created new jobs by abating or reducing assessed valuation of properties, resulting

in abated taxes, from new or improved business real estate for office and industrial uses. The City of

Marysville also enters into various contracts with the benefitting business and the Marysville City School

District for payments in lieu of taxes when required by Section 5709.82 of the Ohio Revised Code.

Income Tax Abatement Programs

The City of Marysville created the Income Tax Abatement program in 2006. The purpose of the program

is to maintain Marysville’s competitiveness as a site for location of new businesses and the expansion of

existing businesses. Pursuant to Ohio Revised Code Chapter 718 and City ordinance, the City provides

an incentive to the company based upon the company’s gross annual payroll, the amount of income tax

generated annually and the number of jobs created or retained by the business. The abatement is

administered as a refund based upon the company’s payroll taxes. Also, the time period of the incentive

in years, is determined by how many new jobs are to be created by the company. The cap on the

incentive is 50% of the income tax collected per year, with an incentive period of no more than 10 years.

City Council’s Incentive Criteria for Decision Making

The City of Marysville has offered tax incentives and Community Reinvestment Act (CRA) and

Enterprise Zone abatements to various businesses based upon substantial project investment in the City.

As a general guideline, the City considers CRA applications for projects that have a residential building

that is less than two units and is owner occupied, the building meets zoning and building regulations, the

CRA encourages private investment that will repair, construct and improve a building and it creates new

employment opportunities. The minimum property tax abatement is seven years for new improvements

of at least $7,500 and the maximum property tax abatement is fifteen years with at least $350,000 worth

of new improvements. For EZ applications, the City of Marysville generally requires projects to have at

least $700,000 dollar real estate investment into a property, along with the retention and creation of at

least 15 jobs with a minimum payroll of at least $750,000.



DRAFT - 68 - 6/17/2019

NOTE 7 – TAX ABATEMENT DISCLOSURES (Continued)

Below is the information relevant to the disclosure of those programs for the year ended December 31, 2018.

Total Amount of Taxes Abated

(Incentives AbatedFor the Year 2018

Tax Abatement In Actual Dollars)

Fiesta Grande (2012 - 2019) (CRA) - Gross Dollar amount of taxes abated during 2018 $589

Scott's Manufacturing (2010 - 2019) (EZ) - Gross Dollar amount of taxes abated during 2018 63,969

Heritage Co-Op (2015 - 2024) (EZ) - Gross Dollar amount of taxes abated during 2018 91,129

Richwood Bank (2012 - 2022) (EZ) - Gross Dollar amount of taxes abated during 2018 26,318

Sumitomo (2015 - 2025) (EZ) - Gross Dollar amount of taxes abated during 2018 397,504

Total $579,509




DRAFT - 69 - 5/30/2019

NOTE 8 - RECEIVABLES

Receivables at December 31, 2018 consisted of taxes, payments in lieu of taxes, interest, accounts

receivable, special assessments and intergovernmental receivables arising from shared revenues.

NOTE 9 - TRANSFERS

Following is a summary of transfers in and out for all funds for 2018:

Transfers Out:

Other

General Governmental

Transfers In: Fund Funds

General Fund $0 $43,906

Debt Service Fund 2,091,138 0

Capital Improvements Project Fund 4,391,794 0

Other Governmental Funds 276,087 0

Total $6,759,019 $43,906

Transfers are used to move unrestricted revenues collected in the General Fund to finance various

programs accounted for in other funds in accordance with budgetary authorizations.

All transfers were made in accordance with the Ohio Revised Code sections 5705.14, 5705.15, and

5705.16.




DRAFT - 70 - 5/30/2019

NOTE 10 - CAPITAL ASSETS

A. Governmental Activities Capital Assets

Summary by category of changes in governmental activities capital assets at December 31, 2018:

Historical Cost:

December 31, December 31,

Class 2017 Additions Deletions 2018

Capital assets not being depreciated:

Land $6,308,349 $0 $0 $6,308,349

Construction in Progress 2,478,350 4,740,253 (2,381,593) 4,837,010

Subtotal 8,786,699 4,740,253 (2,381,593) 11,145,359

Capital assets being depreciated:

Buildings 29,407,526 0 0 29,407,526

Improvements Other Than Buildings 7,840,288 340,194 0 8,180,482

Machinery and Equipment 2,808,291 552,940 0 3,361,231

Vehicles 6,530,149 560,388 (147,368) 6,943,169

Infrastructure 95,560,495 4,945,842 0 100,506,337

Subtotal 142,146,749 6,399,364 (147,368) 148,398,745

Total Cost $150,933,448 $11,139,617 ($2,528,961) $159,544,104

Accumulated Depreciation:



Buildings ($5,087,982) ($748,019) $0 ($5,836,001)

Improvements Other Than Buildings (3,310,576) (388,398) 0 (3,698,974)

Machinery and Equipment (1,483,365) (382,913) 0 (1,866,278)

Vehicles (3,872,539) (416,196) 142,011 (4,146,724)

Infrastructure (66,971,204) (2,538,030) 0 (69,509,234)

Total Depreciation ($80,725,666) ($4,473,556) * $142,011 ($85,057,211)

Net Value: $70,207,782 $74,486,893

* Depreciation expenses were charged to governmental functions as follows:

General Government $646,392

Security of Persons and Property - Police 529,771

Security of Persons and Property - Fire 425,219

Security of Persons and Property - Other 1,210

Public Health and Welfare Services 3,232

Transportation 2,349,399

Community Environment 273,650

Leisure Time Activities 244,683

Total Depreciation Expense $4,473,556




DRAFT - 71 - 5/30/2019

NOTE 10 - CAPITAL ASSETS (continued)

B. Business-Type Activities Capital Assets

Summary by Category at December 31, 2018:

Historical Cost:



Capital assets not being depreciated:

Land $4,195,515 $0 $0 $4,195,515

Construction in Progress 5,537,068 186,515 (1,460,153) 4,263,430

Subtotal 9,732,583 186,515 (1,460,153) 8,458,945

Capital assets being depreciated:

Buildings 108,182,972 0 0 108,182,972

Improvements Other Than Buildings 28,165,605 8,941 0 28,174,546

Machinery and Equipment 2,935,991 391,856 0 3,327,847

Vehicles 2,283,692 250,625 0 2,534,317

Infrastructure 104,422,710 2,189,664 0 106,612,374

Subtotal 245,990,970 2,841,086 0 248,832,056

Total Cost $255,723,553 $3,027,601 ($1,460,153) $257,291,001

Accumulated Depreciation:



Buildings ($25,161,502) ($2,688,398) $0 ($27,849,900)

Improvements Other Than Buildings (6,749,865) (825,184) 0 (7,575,049)

Machinery and Equipment (1,950,976) (219,900) 0 (2,170,876)

Vehicles (1,743,343) (127,423) 0 (1,870,766)

Infrastructure (32,343,577) (2,664,208) 0 (35,007,785)

Total Depreciation ($67,949,263) ($6,525,113) $0 ($74,474,376)

Net Value: $187,774,290 $182,816,625




DRAFT - 72 - 5/30/2019

NOTE 11 – DEFINED BENEFIT PENSION PLANS

Net Pension Liability

The net pension liability reported on the statement of net position represents a liability to employees for

pensions. Pensions are a component of exchange transactions-–between an employer and its employees—

of salaries and benefits for employee services. Pensions are provided to an employee—on a deferred-

payment basis—as part of the total compensation package offered by an employer for employee services

each financial period. The obligation to sacrifice resources for pensions is a present obligation because it

was created as a result of employment exchanges that already have occurred.

The net pension liability represents the City’s proportionate share of each pension plan’s collective

actuarial present value of projected benefit payments attributable to past periods of service, net of each

pension plan’s fiduciary net position. The net pension liability calculation is dependent on critical long-

term variables, including estimated average life expectancies, earnings on investments, cost of living

adjustments and others. While these estimates use the best information available, unknowable future

events require adjusting this estimate annually.

Ohio Revised Code limits the City’s obligation for this liability to annually required payments. The City

cannot control benefit terms or the manner in which pensions are financed; however, the City does

receive the benefit of employees’ services in exchange for compensation including pension.

GASB 68 assumes the liability is solely the obligation of the employer, because (1) they benefit from

employee services; and (2) State statute requires all funding to come from these employers. All

contributions to date have come solely from these employers (which also includes costs paid in the form

of withholdings from employees). State statute requires the pension plans to amortize unfunded liabilities

within 30 years. If the amortization period exceeds 30 years, each pension plan’s board must propose

corrective action to the State legislature. Any resulting legislative change to benefits or funding could

significantly affect the net pension liability. Resulting adjustments to the net pension liability would be

effective when the changes are legally enforceable.

The proportionate share of each plan’s unfunded benefits is presented as a long-term net pension liability

on the accrual basis of accounting. Any liability for the contractually-required pension contribution

outstanding at the end of the year is included in intergovernmental payable on both the accrual and

modified accrual bases of accounting.

Plan Description – Ohio Public Employees Retirement System (OPERS)

Plan Description - City employees, other than full-time police and firefighters, participate in the Ohio

Public Employees Retirement System (OPERS). OPERS administers three separate pension plans. The

traditional pension plan is a cost-sharing, multiple-employer defined benefit pension plan. The member-

directed plan is a defined contribution plan and the combined plan is a cost-sharing, multiple-employer

defined benefit pension plan with defined contribution features. While members (e.g. City employees)

may elect the member-directed plan and the combined plan, substantially all employee members are in

OPERS’ traditional plan; therefore, the following disclosure focuses on the traditional pension plan.




DRAFT - 73 - 5/30/2019

NOTE 11 – DEFINED BENEFIT PENSION PLANS (Continued)

OPERS provides retirement, disability, survivor and death benefits, and annual cost of living adjustments

to members of the traditional plan. Authority to establish and amend benefits is provided by Chapter 145

of the Ohio Revised Code. OPERS issues a stand-alone financial report that includes financial statements,

required supplementary information and detailed information about OPERS’ fiduciary net position that

may be obtained by visiting https://www.opers.org/financial/reports.shtml, by writing to the Ohio Public

Employees Retirement System, 277 East Town Street, Columbus, Ohio 43215-4642, or by calling 800-

222-7377.

Senate Bill (SB) 343 was enacted into law with an effective date of January 7, 2013. In the legislation,

members were categorized into three groups with varying provisions of the law applicable to each group.

The following table provides age and service requirements for retirement and the retirement formula

applied to final average salary (FAS) for the three member groups under the traditional plan as per the

reduced benefits adopted by SB 343 (see OPERS CAFR referenced above for additional information):

Group A Group B Group C

Eligible to retire prior to 20 years of service credit prior to Members not in other Groups

January 7, 2013 or five years January 7, 2013 or eligible to retire and members hired on or after

after January 7, 2013 ten years after January 7, 2013 January 7, 2013

State and Local State and Local State and Local

Age and Service Requirements: Age and Service Requirements: Age and Service Requirements:

Age 60 with 60 months of service credit Age 60 with 60 months of service credit Age 57 with 25 years of service credit

or Age 55 with 25 years of service credit or Age 55 with 25 years of service credit or Age 62 with 5 years of service credit

Formula: Formula: Formula:

2.2% of FAS multiplied by years of 2.2% of FAS multiplied by years of 2.2% of FAS multiplied by years of

service for the first 30 years and 2.5% service for the first 30 years and 2.5% service for the first 35 years and 2.5%

for service years in excess of 30 for service years in excess of 30 for service years in excess of 35

This Space Intentionally Left Blank

https://www.opers.org/financial/reports.shtml




DRAFT - 74 - 5/30/2019


Final average Salary (FAS) represents the average of the three highest years of earnings over a member’s

career for Groups A and B. Group C is based on the average of the five highest years of earnings over a

member’s career.

Members who retire before meeting the age and years of service credit requirement for unreduced

benefits receive a percentage reduction in the benefit amount.

When a benefit recipient has received benefits for 12 months, an annual cost of living adjustment (COLA)

is provided. This COLA is calculated on the base retirement benefit at the date of retirement and is not

compounded. For those retiring prior to January 7, 2013, the COLA will continue to be a 3 percent simple

annual COLA. For those retiring subsequent to January 7, 2013, beginning in calendar year 2019, the

COLA will be based on the average percentage increase in the Consumer Price Index, capped at 3

percent.

Funding Policy - The Ohio Revised Code (ORC) provides statutory authority for member and employer

contributions as follows:

State

and Local

2018 Statutory Maximum Contribution Rates

Employer 14.0 %

Employee 10.0 %

2018 Actual Contribution Rates

Employer:

Pension 14.0 %

Post-employment Health Care Benefits 0.0

Total Employer 14.0 %

Employee 10.0 %

Employer contribution rates are actuarially determined and are expressed as a percentage of covered

payroll. The City’s contractually required contribution was $869,072 for 2018.




DRAFT - 75 - 5/30/2019


Plan Description – Ohio Police & Fire Pension Fund (OPF)

Plan Description - City full-time police and firefighters participate in Ohio Police and Fire Pension Fund

(OPF), a cost-sharing, multiple-employer defined benefit pension plan administered by OPF. OPF

provides retirement and disability pension benefits, annual cost-of-living adjustments, and death benefits

to plan members and beneficiaries. Benefit provisions are established by the Ohio State Legislature and

are codified in Chapter 742 of the Ohio Revised Code. OPF issues a publicly available financial report

that includes financial information and required supplementary information and detailed information

about OPF fiduciary net position. The report that may be obtained by visiting the OPF website at

www.op-f.org or by writing to the Ohio Police and Fire Pension Fund, 140 East Town Street, Columbus,

Ohio 43215-5164.

Upon attaining a qualifying age with sufficient years of service, a member of OPF may retire and receive

a lifetime monthly pension. OPF offers four types of service retirement: normal, service commuted,

age/service commuted and actuarially reduced. Each type has different eligibility guidelines and is

calculated using the member’s average annual salary. The following discussion of the pension formula

relates to normal service retirement.

For members hired after July 1, 2013, the minimum retirement age is 52 for normal service retirement

with at least 25 years of service credit. For members hired on or before July 1, 2013, the minimum

retirement age is 48 for normal service retirement with at least 25 years of service credit.

The annual pension benefit for normal service retirement is equal to a percentage of the allowable average

annual salary. The percentage equals 2.5 percent for each of the first 20 years of service credit, 2.0

percent for each of the next five years of service credit and 1.5 percent for each year of service credit in

excess of 25 years. The maximum pension of 72 percent of the allowable average annual salary is paid

after 33 years of service credit.

Under normal service retirement, retired members who are at least 55 years old and have been receiving

OPF benefits for at least one year may be eligible for a cost-of-living allowance adjustment. The age 55

provision for receiving a COLA does not apply to those who are receiving a permanent and total

disability benefit and statutory survivors.

Members retiring under normal service retirement, with less than 15 years of service credit on July 1,

2013, will receive a COLA equal to either three percent or the percent increase, if any, in the consumer

price index (CPI) over the 12-month period ending on September 30 of the immediately preceding year,

whichever is less. The COLA amount for members with at least 15 years of service credit as of July 1,

2013 is equal to three percent of their base pension or disability benefit.

http://www.op-f.org/



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Funding Policy - The Ohio Revised Code (ORC) provides statutory authority for member and employer contributions as follows:

Police Firefighters2018 Statutory Maximum Contribution Rates

Employer 19.50 % 24.00 %Employee:

January 1, 2018 through December 31, 2018 12.25 % 12.25 %

2018 Actual Contribution RatesEmployer:

Pension 19.00 % 23.50 %Post-employment Health Care Benefits 0.50 0.50

Total Employer 19.50 % 24.00 %

Employee:January 1, 2018 through December 31, 2018 12.25 % 12.25 %

Employer contribution rates are expressed as a percentage of covered payroll. The City’s contractually required contribution to OPF was $1,387,580 for 2018.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

The net pension liability for OPERS was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. OPF’s total pension liability was measured as of December 31, 2017, and was determined by rolling forward the total pension liability as of January 1, 2017, to December 31, 2017. The City's proportion of the net pension liability was based on the City's share of contributions to the pension plan relative to the contributions of all participating entities. Following is information related to the proportionate share and pension expense:

OPERS OP&F TotalProportionate Share of the Net Pension Liability $6,968,253 $17,571,728 $24,539,981

Proportion of the Net Pension Liability-Current Measurement Date 0.044418% 0.286303%Proportion of the Net Pension Liability-Prior Measurement Date 0.042688% 0.266451%Percentage Change 0.001730% 0.019852%

Pension Expense $2,115,462 $2,382,309 $4,497,771




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At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources

related to pensions from the following sources:

OPERS OP&F Total

Deferred Outflows of Resources

Changes in assumptions $832,753 $765,694 $1,598,447

Differences between expected and

actual experience 7,117 266,662 273,779

Change in proportionate share 191,979 1,367,793 1,559,772

City contributions subsequent to the

measurement date 869,072 1,387,580 2,256,652

Total Deferred Outflows of Resources $1,900,921 $3,787,729 $5,688,650

Deferred Inflows of Resources

Net difference between projected and

actual earnings on pension plan investments $1,495,992 $607,848 $2,103,840


actual experience 137,324 31,787 169,111

Change in proportionate share 23,385 98,499 121,884

Total Deferred Inflows of Resources $1,656,701 $738,134 $2,394,835

$2,256,652 reported as deferred outflows of resources related to pension resulting from City contributions

subsequent to the measurement date will be recognized as a reduction of the net pension liability in the

year ending December 31, 2019. Other amounts reported as deferred outflows of resources and deferred

inflows of resources related to pension will be recognized in pension expense as follows:

OPERS OP&F Total

Year Ending December 31:

2019 $760,269 $722,645 $1,482,914

2020 (111,640) 629,660 518,020

2021 (658,754) (95,564) (754,318)

2022 (614,727) (61,824) (676,551)

2023 0 376,242 376,242

2024 0 90,856 90,856

Total ($624,852) $1,662,015 $1,037,163

Actuarial Assumptions - OPERS

Actuarial valuations of an ongoing plan involve estimates of the values of reported amounts and

assumptions about the probability of occurrence of events far into the future. Examples include

assumptions about future employment, mortality, and cost trends. Actuarially determined amounts are

subject to continual review or modification as actual results are compared with past expectations and new

estimates are made about the future.




DRAFT - 78 - 5/30/2019


Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as

understood by the employers and plan members) and include the types of benefits provided at the time of

each valuation. The total pension liability in the December 31, 2017 actuarial valuation was determined

using the following actuarial assumptions, applied to all periods included in the measurement:

Wage Inflation 3.25 percent

Future Salary Increases, including inflation 3.25 to 10.75 percent including wage inflation

COLA or Ad Hoc COLA (Pre 1/7/13 retirees) 3 percent simple

COLA or Ad Hoc COLA (Post 1/7/13 retirees) 3 percent simple through 2018. 2.15 percent simple, thereafter

Investment Rate of Return 7.5 percent

Actuarial Cost Method Individual Entry Age

Mortality rates are based on the RP-2014 Healthy Annuitant mortality table. For males, Healthy

Annuitant Mortality tables were used, adjusted for mortality improvement back to the observation period

base of 2006 and then established the base year as 2015. For females, Healthy Annuitant Mortality tables

were used, adjusted for mortality improvements back to the observation period base year of 2006 and then

established the base year as 2010. The mortality rates used in evaluating disability allowances were based

on the RP-2014 Disabled mortality tables, adjusted for mortality improvement back to the observation

base year of 2006 and then established the base year as 2015 for males and 2010 for females. Mortality

rates for a particular calendar year for both healthy and disabled retiree mortality tables are determined by

applying the MP-2015 mortality improvement scale to the above described tables.

The most recent experience study was completed for the five year period ended December 31, 2015.

The long-term rate of return on defined benefit investment assets was determined using a building-block

method in which best-estimate ranges of expected future real rates of return are developed for each major

asset class. These ranges are combined to produce the long-term expected real rate of return by weighting

the expected future real rates of return by the target asset allocation percentage, adjusted for inflation.

During 2017, OPERS managed investments in three investment portfolios: the Defined Benefit portfolio,

the Health Care portfolio, and the Defined Contribution portfolio. The Defined Benefit portfolio contains

the investment assets for the Traditional Pension Plan, the defined benefit component of the Combined

Plan and the annuitized accounts of the Member-Directed Plan. Within the Defined Benefit portfolio,

contributions into the plans are all recorded at the same time, and benefit payments all occur on the first

of the month. Accordingly, the money-weighted rate of return is considered to be the same for all plans

within the portfolio. The annual money-weighted rate of return expressing investment performance, net of

investment expenses and adjusted for the changing amounts actually invested, for the Defined Benefit

portfolio was 16.82% for 2017.



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The allocation of investment assets with the Defined Benefit portfolio is approved by the Board of Trustees as outlined in the annual investment plan. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the defined benefit pension plans. The table below displays the Board-approved asset allocation policy for 2017 and the long-term expected real rates of return:

TargetAsset Class Allocation

Fixed Income 23.00 % 2.20 %Domestic Equities 19.00 6.37Real Estate 10.00 5.26Private Equity 10.00 8.97International Equities 20.00 7.88Other investments 18.00 5.26

Total 100.00 % 5.66 %

(Arithmetic)

Weighted AverageLong-Term ExpectedReal Rate of Return

Discount Rate The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers are made at the statutorily required rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefits payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following table presents the City’s proportionate share of the net pension liability calculated using the current period discount rate assumption of 7.5 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one-percentage-point lower (6.5 percent) or one-percentage-point higher (8.5 percent) than the current rate:

Current1% Decrease Discount Rate 1% Increase

(6.50%) (7.50%) (8.50%)City's proportionate share of the net pension liability $12,373,842 $6,968,253 $2,461,621

Changes Between Measurement Date and Report Date In October 2018, the OPERS Board adopted certain assumption changes which will impact their valuation prepared as of January 1, 2018. The most significant change is a reduction in the assumed actuarial rate of return from 7.50 percent to 7.20 percent. Although the exact amount of these changes is not known, it has the potential to impact the City’s net pension liability.



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Actuarial Assumptions – OPF

OPF’s total pension liability as of December 31, 2017 is based on the results of an actuarial valuation date of January 1, 2017, and rolled-forward using generally accepted actuarial procedures. The total pension liability is determined by OPF’s actuaries in accordance with GASB Statement No. 67, as part of their annual valuation. Actuarial valuations of an ongoing plan involve estimates of reported amounts and assumptions about probability of occurrence of events far into the future. Examples include assumptions about future employment mortality, salary increases, disabilities, retirements and employment terminations. Actuarially determined amounts are subject to continual review and potential modifications, as actual results are compared with past expectations and new estimates are made about the future. Assumptions considered were: withdrawal rates, disability retirement, service retirement, DROP elections, mortality, percent married and forms of the payment, DROP interest rate, CPI-based COLA, investment returns, salary increases and payroll growth.

Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuation, prepared as of January 1, 2017, are presented below:

Valuation Date January 1, 2017 January 1, 2016Actuarial Cost Method Entry Age Normal Entry Age NormalInvestment Rate of Return 8.00 percent 8.25 percent Projected Salary Increases 3.75 percent to 10.5 percent 4.25 percent to 11 percentPayroll Increases 3.25 percent 3.75 percentInflation Assumptions 2.75 percent 3.25 percentCost of Living Adjustments 3.00 percent simple; 3.00 percent simple;

2.2 percent for increases based on 2.6 percent for increases based onthe lesser of the increase in CPI and 3%. the lesser of the increase in CPI and 3%.

Mortality for non-disabled participants is based on the RP-2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006, adjusted according to the rates in the following table, and projected with the Conduent Modified 2016 Improvement Scale. Rates for surviving beneficiaries are adjusted by 120%. Mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006, adjusted according to the rates in the following table, and projected with the Conduent Modified

2016 Improvement Scale.

Age Police Fire

Healthy Mortality67 or less 77% 68%

68-77 105% 87%78 and up 115% 120%

Disabled Mortality59 or less 35% 35%

60-69 60% 45%70-79 75% 70%

80 and up 100% 90%




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The long-term expected rate of return on pension plan investments was determined using a building-block approach and assumes a time horizon, as defined in the Statement of Investment Policy. A forecasted rate of inflation serves as the baseline for the return expectation. Various real return premiums over the baseline inflation rate have been established for each asset class. The long-term expected nominal rate of return has been determined by calculating a weighted averaged of the expected real return premiums for each asset class, adding the projected inflation rate and adding the expected return from rebalancing uncorrelated asset classes.

Best estimates of the long-term expected geometric real rates of return for each major asset class included in OPF’s target asset allocation as of December 31, 2017 are summarized below:

TargetAsset Class Allocation

Cash and Cash Equivalents 0.00 % 0.00 %Domestic Equity 16.00 5.21Non-US Equity 16.00 5.40Core Fixed Income * 20.00 2.37Global Inflation Protected * 20.00 2.33High Yield 15.00 4.48Real Estate 12.00 5.65Private Markets 8.00 7.99Real Assets 5.00 6.87Master Limited Partnerships 8.00 7.36

Total 120.00 %

* levered 2x

Long Term ExpectedReal Rate of Return

OPF’s Board of Trustees has incorporated the “risk parity” concept into OPF’s asset liability valuation with the goal of reducing equity risk exposure, which reduces overall Total Portfolio risk without sacrificing return, and creating a more risk-balanced portfolio based on their relationship between asset classes and economic environments. From the notional portfolio perspective above, the Total Portfolio may be levered up to 1.2 times due to the application of leverage in certain fixed income asset classes.

Discount Rate The total pension liability was calculated using the discount rate of 8.00 percent. The discount rate for 2016 was 8.25 percent. The projection of cash flows used to determine the discount rate assumed the contributions from employers and from the members would be computed based on contribution requirements as stipulated by State statute. Projected inflows from investment earning were calculated using the longer-term assumed investment rate of return 8.00 percent. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all future benefit payments of current plan members. Therefore, a long-term expected rate of return on pension plan investments was applied to all periods of projected benefits to determine the total pension liability.




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Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount

Rate Net pension liability is sensitive to changes in the discount rate, and to illustrate the potential impact

the following table presents the net pension liability calculated using the discount rate of 8.00 percent, as

well as what the net pension liability would be if it were calculated using a discount rate that is one

percentage point lower (7.00 percent), or one percentage point higher (9.00 percent) than the current rate.

Current

1% Decrease Discount Rate 1% Increase

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

City's proportionate share

of the net pension liability $24,359,023 $17,571,728 $12,036,068

NOTE 12 - DEFINED BENEFIT OPEB PLANS

Net OPEB Liability

The net OPEB liability reported on the statement of net position represents a liability to employees for

OPEB. OPEB is a component of exchange transactions-–between an employer and its employees—of

salaries and benefits for employee services. OPEB are provided to an employee—on a deferred-payment

basis—as part of the total compensation package offered by an employer for employee services each

financial period. The obligation to sacrifice resources for OPEB is a present obligation because it was

created as a result of employment exchanges that already have occurred.

The net OPEB liability represents the City’s proportionate share of each OPEB plan’s collective actuarial

present value of projected benefit payments attributable to past periods of service, net of each OPEB

plan’s fiduciary net position. The net OPEB liability calculation is dependent on critical long-term

variables, including estimated average life expectancies, earnings on investments, cost of living

adjustments and others. While these estimates use the best information available, unknowable future

events require adjusting these estimates annually.

Ohio Revised Code limits the City’s obligation for this liability to annually required payments. The City

cannot control benefit terms or the manner in which OPEB are financed; however, the City does receive

the benefit of employees’ services in exchange for compensation including OPEB.

GASB 75 assumes the liability is solely the obligation of the employer, because they benefit from

employee services. OPEB contributions come from these employers and health care plan enrollees which

pay a portion of the health care costs in the form of a monthly premium. The Ohio revised Code permits,

but does not require the retirement systems to provide healthcare to eligible benefit recipients. Any

change to benefits or funding could significantly affect the net OPEB liability. Resulting adjustments to

the net OPEB liability would be effective when the changes are legally enforceable. The retirement

systems may allocate a portion of the employer contributions to provide for these OPEB benefits.

The proportionate share of each plan’s unfunded benefits is presented as a long-term net OPEB liability

on the accrual basis of accounting. Any liability for the contractually-required OPEB contribution

outstanding at the end of the year is included in intergovernmental payable on both the accrual and

modified accrual bases of accounting.




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NOTE 12 - DEFINED BENEFIT OPEB PLANS (Continued)

Plan Description – Ohio Public Employees Retirement System (OPERS)

Plan Description - The Ohio Public Employees Retirement System (OPERS) administers three separate

pension plans: the traditional pension plan, a cost-sharing, multiple-employer defined benefit pension

plan; the member-directed plan, a defined contribution plan; and the combined plan, a cost-sharing,

multiple-employer defined benefit pension plan that has elements of both a defined benefit and defined

contribution plan.

OPERS maintains a cost-sharing, multiple-employer defined benefit post-employment health care trust,

which funds multiple health care plans including medical coverage, prescription drug coverage and

deposits to a Health Reimbursement Arrangement to qualifying benefit recipients of both the traditional

pension and the combined plans. This trust is also used to fund health care for member-directed plan

participants, in the form of a Retiree Medical Account (RMA). At retirement or refund, member directed

plan participants may be eligible for reimbursement of qualified medical expenses from their vested RMA

balance.

In order to qualify for postemployment health care coverage, age and service retirees under the traditional

pension and combined plans must have twenty or more years of qualifying Ohio service credit. Health

care coverage for disability benefit recipients and qualified survivor benefit recipients is available. The

health care coverage provided by OPERS meets the definition of an Other Post Employment Benefit

(OPEB) as described in GASB Statement 75. See OPERS’ CAFR referenced below for additional

information.

The Ohio Revised Code permits, but does not require OPERS to provide health care to its eligible benefit

recipients. Authority to establish and amend health care coverage is provided to the Board in Chapter 145

of the Ohio Revised Code.

Disclosures for the health care plan are presented separately in the OPERS financial report. Interested

parties may obtain a copy by visiting https://www.opers.org/financial/reports.shtml, by writing to

OPERS, 277 East Town Street, Columbus, Ohio 43215-4642, or by calling (614) 222-5601 or 800-222-

7377.

Funding Policy - The Ohio Revised Code provides the statutory authority requiring public employers to

fund postemployment health care through their contributions to OPERS. When funding is approved by

OPERS Board of Trustees, a portion of each employer’s contribution to OPERS is set aside to fund

OPERS health care plans.

Employer contribution rates are expressed as a percentage of the earnable salary of active members. In

2018, state and local employers contributed at a rate of 14.0 percent of earnable salary and public safety

and law enforcement employers contributed at 18.1 percent. These are the maximum employer

contribution rates permitted by the Ohio Revised Code. Active member contributions do not fund health

care.

https://www.opers.org/financial/reports.shtml




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Each year, the OPERS Board determines the portion of the employer contribution rate that will be set

aside to fund health care plans. The portion of employer contributions allocated to health care for

members in the Traditional Pension Plan and Combined Plan was 1.0 percent during calendar year 2017.

As recommended by OPERS’ actuary, the portion of employer contributions allocated to health care

beginning January 1, 2018 decreased to 0 percent for both plans. The OPERS Board is also authorized to

establish rules for the retiree or their surviving beneficiaries to pay a portion of the health care provided.

Payment amounts vary depending on the number of covered dependents and the coverage selected. The

employer contribution as a percentage of covered payroll deposited into the RMA for participants in the

Member-Directed Plan for 2018 was 4.0 percent.

Employer contribution rates are actuarially determined and are expressed as a percentage of covered

payroll. The City’s contractually required contribution was $0 for 2018.

Plan Description – Ohio Police & Fire Pension Fund (OP&F)

Plan Description – The City contributes to the Ohio Police and Fire Pension Fund (OP&F) sponsored

healthcare program, a cost-sharing, multiple-employer defined post-employment healthcare plan

administered by a third-party provider. This program is not guaranteed and is subject to change at any

time upon action of the Board of Trustees. OP&F provides health care benefits including coverage for

medical, prescription drug, dental, vision, and Medicare Part B Premium to retirees, qualifying benefit

recipients and their eligible dependents.

OP&F provides access to postretirement health care coverage for any person who receives or is eligible to

receive a monthly service, disability, or statutory survivor benefit, or is a spouse or eligible dependent

child of such person. The health care coverage provided by OP&F meets the definition of an Other Post

Employment Benefit (OPEB) as described in Government Accounting Standards Board (GASB)

Statement No. 75.

The Ohio Revised Code allows, but does not mandate, OP&F to provide OPEB benefits. Authority for

the OP&F Board of Trustees to provide health care coverage to eligible participants and to establish and

amend benefits is codified in Chapter 742 of the Ohio Revised Code.

OP&F issues a publicly available financial report that includes financial information and required

supplementary information for the plan. The report may be obtained by visiting the OP&F website at

www.op-f.org or by writing to the Ohio Police and Fire Pension Fund, 140 East Town Street, Columbus,

Ohio 43215-5164.

Funding Policy – The Ohio Revised Code provides for contribution requirements of the participating

employers and of plan members to the OP&F defined benefit pension plan. Participating employers are

required to contribute to the pension plan at rates expressed as percentages of the payroll of active

pension plan members, currently 19.5 percent and 24 percent of covered payroll for police and fire

employer units, respectively. The Ohio Revised Code states that the employer contribution may not

exceed 19.5 percent of covered payroll for police employer units and 24 percent of covered payroll for

fire employer units. Active members do not make contributions to the OPEB Plan.

http://www.op-f.org/



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OP&F maintains funds for health care in two separate accounts. There is one account for health care benefits and one account for Medicare Part B reimbursements. A separate health care trust accrual account is maintained for health care benefits under IRS Code Section 115 trust. An Internal Revenue Code 401(h) account is maintained for Medicare Part B reimbursements.

The Board of Trustees is authorized to allocate a portion of the total employer contributions made into the pension plan to the Section 115 trust and the Section 401(h) account as the employer contribution for retiree health care benefits. For 2018, the portion of employer contributions allocated to health care was 0.5 percent of covered payroll. The amount of employer contributions allocated to the health care plan each year is subject to the Trustees’ primary responsibility to ensure that pension benefits are adequately funded and is limited by the provisions of Sections 115 and 401(h).

The OP&F Board of Trustees is also authorized to establish requirements for contributions to the health care plan by retirees and their eligible dependents or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected.

The City’s contractually required contribution to OP&F was $32,365 for 2018.

OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

The net OPEB liability and total OPEB liability for OPERS were determined by an actuarial valuation as of December 31, 2016, rolled forward to the measurement date of December 31, 2017, by incorporating the expected value of health care cost accruals, the actual health care payment, and interest accruals during the year. OP&F’s total OPEB liability was measured as of December 31, 2017, and was determined by rolling forward the total OPEB liability as of January 1, 2017, to December 31, 2017. The City's proportion of the net OPEB liability was based on the City's share of contributions to the retirement plan relative to the contributions of all participating entities. Following is information related to the proportionate share and OPEB expense:

OPERS OP&F TotalProportionate Share of the Net OPEB Liability $5,015,892 $16,221,546 $21,237,438

Proportion of the Net OPEB Liability-Current Measurement Date 0.046190% 0.286303%Proportion of the Net OPEB Liability-Prior Measurement Date 0.044330% 0.266451%Percentage Change 0.001860% 0.019852%

OPEB Expense $472,800 $1,388,303 $1,861,103




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At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources

related to OPEB from the following sources:

OPERS OP&F Total

Deferred Outflows of Resources

Changes in assumptions $365,210 $1,582,878 $1,948,088


actual experience 3,907 0 3,907

Change in proportionate share 127,099 822,134 949,233

City contributions subsequent to the

measurement date 0 32,365 32,365

Total Deferred Outflows of Resources $496,216 $2,437,377 $2,933,593

Deferred Inflows of Resources

Net difference between projected and

actual earnings on pension plan investments $373,651 $106,777 $480,428


actual experience 0 81,815 81,815

Total Deferred Inflows of Resources $373,651 $188,592 $562,243

$32,365 reported as deferred outflows of resources related to OPEB resulting from City contributions

subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in 2019.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to

OPEB will be recognized in OPEB expense as follows:

OPERS OP&F Total

Year Ending December 31:

2019 $143,829 $312,956 $456,785

2020 143,829 312,956 456,785

2021 (71,682) 312,956 241,274

2022 (93,411) 312,955 219,544

2023 0 339,650 339,650

2024 0 339,650 339,650

2025 0 285,297 285,297

Total $122,565 $2,216,420 $2,338,985




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Actuarial Assumptions - OPERS

Actuarial valuations of an ongoing plan involve estimates of the values of reported amounts and

assumptions about the probability of occurrence of events far into the future. Examples include

assumptions about future employment, mortality, and cost trends. Actuarially determined amounts are

subject to continual review or modification as actual results are compared with past expectations and new

estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan and include the

types of coverage provided at the time of each valuation and the historical pattern of sharing of costs

between OPERS and plan members. The total OPEB liability was determined by an actuarial valuation

as of December 31, 2016, rolled forward to the measurement date of December 31, 2017. The actuarial

valuation used the following actuarial assumptions applied to all prior periods included in the

measurement in accordance with the requirements of GASB 74:

Wage Inflation 3.25 percent

Projected Salary Increases, 3.25 to 10.75 percent

including inflation including wage inflation

Single Discount Rate:

Current measurement date 3.85 percent

Prior Measurement date 4.23 percent


Municipal Bond Rate 3.31 percent

Health Care Cost Trend Rate 7.5 percent, initial

3.25 percent, ultimate in 2028

Actuarial Cost Method Individual Entry Age

Pre-retirement mortality rates are based on the RP-2014 Employees mortality table for males and females,

adjusted for mortality improvement back to the observation period base year of 2006. The base year for

males and females was then established to be 2015 and 2010, respectively. Post-retirement mortality rates

are based on the RP-2014 Healthy Annuitant mortality table for males and females, adjusted for mortality

improvement back to the observation period base year of 2006. The base year for males and females was

then established to be 2015 and 2010, respectively. Post-retirement mortality rates for disabled retirees

are based on the RP-2014 Disabled mortality table for males and females, adjusted for mortality

improvement back to the observation period base year of 2006. The base year for males and females was

then established to be 2015 and 2010, respectively. Mortality rates for a particular calendar year are

determined by applying the MP-2015 mortality improvement scale to all of the above described tables.


The long-term expected rate of return on health care investment assets was determined using a building-

block method in which best-estimate ranges of expected future real rates of return are developed for each

major asset class. These ranges are combined to produce the long-term expected real rate of return by

weighting the expected future real rates of return by the target asset allocation percentage, adjusted for

inflation.




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During 2017, OPERS managed investments in three investment portfolios: the Defined Benefit portfolio,

the Health Care portfolio and the Defined Contribution portfolio. The Health Care portfolio includes the

assets for health care expenses for the Traditional Pension Plan, Combined Plan and Member-Directed

Plan eligible members. Within the Health Care portfolio, contributions into the plans are assumed to be

received continuously throughout the year based on the actual payroll payable at the time contributions

are made, and health care-related payments are assumed to occur mid-year. Accordingly, the money-

weighted rate of return is considered to be the same for all plans within the portfolio. The annual money-

weighted rate of return expressing investment performance, net of investment expenses and adjusted for

the changing amounts actually invested, for the Health Care portfolio is 15.2 percent for 2017.

The allocation of investment assets with the Health Care portfolio is approved by the Board of Trustees as

outlined in the annual investment plan. Assets are managed on a total return basis with a long-term

objective of continuing to offer a sustainable health care program for current and future retirees. OPERS’

primary goal is to achieve and maintain a fully funded status for the benefits provided through the defined

pension plans. Health care is a discretionary benefit. The table below displays the Board-approved asset

allocation policy for 2017 and the long-term expected real rates of return:

Target

Asset Class Allocation

Fixed Income 34.00 % 1.88 %

Domestic Equities 21.00 6.37

Real Estate Investment Trust 6.00 5.91

International Equities 22.00 7.88

Other investments 17.00 5.39

Total 100.00 % 4.98 %

(Arithmetic)

Weighted Average

Long-Term Expected

Real Rate of Return

Discount Rate A single discount rate of 3.85 percent was used to measure the OPEB liability on the

measurement date of December 31, 2017. A single discount rate of 4.23 percent was used to measure

the OPEB liability on the measurement date of December 31, 2016. Projected benefit payments are

required to be discounted to their actuarial present value using a single discount rate that reflects (1) a

long-term expected rate of return on OPEB plan investments (to the extent that the health care fiduciary

net position is projected to be sufficient to pay benefits), and (2) tax-exempt municipal bond rate based

on an index of 20-year general obligation bonds with an average AA credit rating as of the

measurement date (to the extent that the contributions for use with the long-term expected rate are not

met). This single discount rate was based on an expected rate of return on the health care investment

portfolio of 6.50 percent and a municipal bond rate of 3.31 percent. The projection of cash flows used

to determine this single discount rate assumed that employer contributions will be made at rates equal

to the actuarially determined contribution rate. Based on these assumptions, the health care fiduciary

net position and future contributions were sufficient to finance health care costs through 2034. As a

result, the long-term expected rate of return on health care investments was applied to projected costs

through the year 2034, and the municipal bond rate was applied to all health care costs after that date.



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Sensitivity of the City’s Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate The following table presents the City’s proportionate share of the net OPEB liability calculated using the single discount rate of 3.85 percent, as well as what the City’s proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is one-percentage-point lower (2.85 percent) or one-percentage-point higher (4.85 percent) than the current rate:

Current1% Decrease Discount Rate 1% Increase

(2.85%) (3.85%) (4.85%)City's proportionate share of the net OPEB liability $6,663,831 $5,015,892 $3,682,728

Sensitivity of the City’s Proportionate Share of the Net OPEB Liability to Changes in the Health Care Cost Trend Rate Changes in the health care cost trend rate may also have a significant impact on the net OPEB liability. The following table presents the net OPEB liability calculated using the assumed trend rates, and the expected net OPEB liability if it were calculated using a health care cost trend rate that is 1.0 percent lower or 1.0 percent higher than the current rate.

Retiree health care valuations use a health care cost-trend assumption that changes over several years built into the assumption. The near-term rates reflect increases in the current cost of health care; the trend starting in 2018 is 7.50 percent. If this trend continues for future years, the projection indicates that years from now virtually all expenditures will be for health care. A more reasonable alternative is that in the not-too-distant future, the health plan cost trend will decrease to a level at, or near, wage inflation. On this basis, the actuaries project premium rate increases will continue to exceed wage inflation for approximately the next decade, but by less each year, until leveling off at an ultimate rate, assumed to be 3.25 percent in the most recent valuation.

Current Health CareCost Trend Rate

1% Decrease Assumption 1% IncreaseCity's proportionate share of the net OPEB liability $4,799,141 $5,015,892 $5,239,793

Changes Between Measurement Date and Report Date In October 2018, the OPERS Board adopted a change in the investment return assumption, reducing it from 6.5 percent to 6.0 percent. This change will be effective for the 2018 valuation. The exact amount of the impact to the City’s net OPEB liability is not known.



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Actuarial Assumptions – OP&F

OP&F’s total OPEB liability as of December 31, 2017, is based on the results of an actuarial valuation date of January 1, 2017, and rolled-forward using generally accepted actuarial procedures. The total OPEB liability is determined by OP&F’s actuaries in accordance with GASB Statement No. 74, as part of their annual valuation. Actuarial valuations of an ongoing plan involve estimates of reported amounts and assumptions about probability of occurrence of events far into the future. Examples include assumptions about future employment mortality, salary increases, disabilities, retirements and employment terminations. Actuarially determined amounts are subject to continual review and potential modifications, as actual results are compared with past expectations and new estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employers and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations.

Actuarial calculations reflect a long-term perspective. For a newly hired employee, actuarial calculations will take into account the employee’s entire career with the employer and also take into consideration the benefits, if any, paid to the employee after termination of employment until the death of the employee and any applicable contingent annuitant. In many cases, actuarial calculations reflect several decades of service with the employer and the payment of benefits after termination.

Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results, are presented below.

Valuation Date January 1, 2017, with actuarial liabilities

rolled forward to December 31, 2017

Actuarial Cost Method Entry Age Normal


Projected Salary Increases 3.75 percent to 10.5 percentPayroll Growth Inflation rate of 2.75 percent plus

productivity increase rate of 0.5 percent

Single discount rate:

Currrent measurement date 3.24 percent Prior measurement date 3.79 percent

Cost of Living Adjustments 3.00 percent simple; 2.2 percent simple

for increased based on the lesser of the

increase in CPI and 3 percent

Mortality for non-disabled participants is based on the RP-2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006, adjusted according to the rates in the following table, and projected with the Conduent Modified 2016 Improvement Scale. Rates for surviving beneficiaries are adjusted by 120 percent.

Age Police Fire

67 or less 77 % 68 %68-77 105 87

78 and up 115 120




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Mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006,

adjusted according to the rates in the following table, and projected with the Conduent Modified 2016

Improvement Scale.

Age Police Fire

59 or less 35 % 35 %

60-69 60 45

70-79 75 70

80 and up 100 90

The most recent experience study was completed for the five year period ended December 31, 2016. The

prior experience study was completed December 31, 2011.

The long-term expected rate of return on OPEB plan investments was determined using a building-block

approach and assumes a time horizon, as defined in the Statement of Investment Policy. A forecasted rate

of inflation serves as the baseline for the return expected. Various real return premiums over the baseline

inflation rate have been established for each asset class. The long-term expected nominal rate of return

has been determined by calculating a weighted averaged of the expected real return premiums for each

asset class, adding the projected inflation rate and adding the expected return from rebalancing

uncorrelated asset classes. Best estimates of the long-term expected geometric real rates of return for each

major asset class included in OP&F’s target asset allocation as of December 31, 2017, are summarized

below:

Target

Asset Class Allocation

Cash and Cash Equivalents - % 0.00 %

Domestic Equity 16.00 5.21

Non-US Equity 16.00 5.40

Core Fixed Income * 20.00 2.37

Global Inflation Protected Securities* 20.00 2.33

High Yield 15.00 4.48

Real Estate 12.00 5.65

Private Markets 8.00 7.99

Timber 5.00 6.87

Master Limited Partnerships 8.00 7.36

Total 120.00 %

Note: Assumptions are geometric.

* levered 2x

Long-Term Expected

Real Rate of Return




DRAFT - 92 - 5/30/2019


OP&F’s Board of Trustees has incorporated the risk parity concept into OP&F’s asset liability valuation

with the goal of reducing equity risk exposure, which reduces overall Total Portfolio risk without

sacrificing return, and creating a more risk-balanced portfolio based on the relationship between asset

classes and economic environments. From the notional portfolio perspective above, the Total Portfolio

may be levered up to 1.2 times due to the application of leverage in certain fixed income asset classes.

Discount Rate The total OPEB liability was calculated using the discount rate of 3.24 percent. The

projection of cash flows used to determine the discount rate assumed the contribution from employers and

from members would be computed based on contribution requirements as stipulated by state statute.

Projected inflows from investment earnings were calculated using the longer-term assumed investment

rate of return 8 percent. Based on those assumptions, OP&F’s fiduciary net position was projected to not

be able to make all future benefit payments of current plan members. Therefore, a municipal bond rate of

3.16 percent at December 31, 2017 and 3.71 percent at December 31, 2016, was blended with the long-

term rate of 8 percent, which resulted in a blended discount rate of 3.24 percent. The municipal bond rate

was determined using the S&P Municipal Bond 20 Year High Grade Rate Index. The OPEB plan’s

fiduciary net position was projected to be available to make all projected OPEB payments until 2025.

The long-term expected rate of return on health care investments was applied to projected costs through

2025, and the municipal bond rate was applied to all health care costs after that date.

Sensitivity of the City's Proportionate Share of the Net OPEB Liability to Changes in the Discount

Rate Net OPEB liability is sensitive to changes in the discount rate, and to illustrate the potential impact

the following table presents the net OPEB liability calculated using the discount rate of 3.24 percent, as

well as what the net OPEB liability would be if it were calculated using a discount rate that is one

percentage point lower (2.24 percent), or one percentage point higher (4.24 percent) than the current rate.

Current

1% Decrease Discount Rate 1% Increase

(2.24%) (3.24%) (4.24%)


of the net OPEB liability $20,277,128 $16,221,546 $13,100,953




DRAFT - 93 - 5/30/2019


Sensitivity of the City’s Proportionate Share of the Net OPEB Liability to Changes in the Health Care

Cost Trend Rate Net OPEB liability is sensitive to changes in the health care cost trend rate. The trend

rate is the annual rate at which the cost of covered medical services is assumed to increase from the

current year to the next year. Beginning in 2017, the per-capita costs are assumed to change by the

following percentages each year:

Medicare

Non-Medicare Non-AARP AARP Rx Drug Part B

Year

2017 -0.47% -2.50% 4.50% -0.47% 5.20%

2018 7.00% 7.00% 4.50% 7.00% 5.10%

2019 6.50% 6.50% 4.50% 6.50% 5.00%

2020 6.00% 6.00% 4.50% 6.00% 5.00%

2021 5.50% 5.50% 4.50% 5.50% 5.00%

2022 5.00% 5.00% 4.50% 5.00% 5.00%

2023 and Later 4.50% 4.50% 4.50% 4.50% 5.00%

To illustrate the potential impact, the following table presents the net OPEB liability calculated using the

current healthcare cost trend current rates as outlined in the table above, a one percent decrease in the

trend rates and a one percent increase in the trend rates.

Current

1% Decrease Rates 1% Increase


of the net OPEB liability $12,601,188 $16,221,546 $21,100,562

Changes between Measurement Date and Report Date

In March 2018, the OP&F Board of Trustees approved the implementation date and framework for a new

health care model. Beginning January 1, 2019, the current self-insured health care plan will no longer be

offered. In its place is a stipend-based health care model. A stipend funded by OP&F will be placed in

individual Health Reimbursement Accounts that retirees will use to be reimbursed for health care

expenses. The impact to the City’s NOL is not known.




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NOTE 13 – COMPENSATED ABSENCES

In accordance with GASB Statement No. 16, "Accounting for Compensated Absences," vacation and

compensatory time are accrued as liabilities when an employee's right to receive compensation is

attributable to services already rendered and it is probable the employee will be compensated through

paid time off or some other means, such as cash payments at termination or retirement. Leave time that

has been earned but is unavailable for use as paid time off or as some other form of compensation because

an employee has not met the minimum service time requirement, is accrued to the extent that it is

considered to be probable that the conditions for compensation will be met in the future.

Sick leave is accrued using the vesting method, whereby the liability is recorded on the basis of leave

accumulated by employees who are eligible to receive termination payments as of the balance sheet date,

and on leave balances accumulated by other employees who are expected to become eligible in the future

to receive such payments.

At December 31, 2018, the City's accumulated, unpaid compensated absences amounted to $2,320,227, of

which $1,784,262 is recorded as a liability of the Governmental Activities and $535,965 is recorded as a

liability of the Business-Type Activities.





DRAFT - 95 - 5/30/2019

NOTE 14 - NOTES PAYABLE

The Ohio Revised Code provides that notes including renewal notes issued in anticipation of the issuance

of general obligation bonds may be issued and outstanding from time to time up to a maximum period of

20 years from the date of issuance of the original notes. The maximum maturity for notes anticipating

general obligation bonds payable from special assessments is five years. Any period in excess of five

years must be deducted from the permitted maximum maturity of the bonds anticipated, and portions of

the principal amount of notes outstanding for more than five years must be retired in amounts at least

equal to and payable no later than those principal maturities required if the bonds had been issued at the

expiration of the initial five year period.

Balance Balance

Issue December 31, Issued December 31,

Date 2017 (Retired) 2018


Debt Service Funds Notes Payable:

2.50% MSC BAN 3/29/18 $0 $100,000 $100,000

Capital Projects Fund Note Payable:

1.75% MSC BAN 8/28/17 $3,885,000 ($3,885,000) $0

2.50% MSC BAN 8/28/18 0 3,035,000 3,035,000

Total Capital Project Fund Notes Payable: 3,885,000 (850,000) 3,035,000

Total Governmental Notes Payable $3,885,000 ($750,000) $3,135,000

The 2017 MSCBAN Notes of $3,885,000 bearing a rate of 1.75% matured on August 28, 2018 and were

reissued as 2018 MSCBAN Notes of $3,035,000 bearing a rate of 2.5%. The notes were issued to finance

the cost of construction of the new Municipal Service Complex. These notes will be retired from the

City’s Capital Improvement Fund.




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NOTE 15 - LONG-TERM DEBT

Long-term debt of the City at December 31, 2018 was as follows:

Balance Balance Amount Due

Date December 31, December 31, Within

Purchased Description 2017 Additions (Reductions) 2018 One Year


Bond Anticipation Note2017 MSC BAN $2,000,000 $1,800,000 ($2,000,000) $1,800,000 $1,800,000

General Obligation Bonds:2007 Various Purpose Refunding Bonds 2,175,000 0 (690,000) 1,485,000 725,000

Premium 70,549 0 (21,706) 48,843 21,7062011 Facility Construction Bonds 11,210,000 0 (615,000) 10,595,000 635,000

Premium 17,754 0 (1,365) 16,389 1,3652014 TIF Bonds 9,525,000 0 (425,000) 9,100,000 440,000

Premium 149,668 0 (8,804) 140,864 8,804

Total General Obligation Bonds 23,147,971 0 (1,761,875) 21,386,096 1,831,875

Special Obligation Bond:

2018 TIF Bonds 0 2,489,293 0 2,489,293 0

Long-Term Loan:

2014 Park Construction/Improvement 900,000 0 (110,000) 790,000 120,000

Other Long-Term Obligations: Compensated Absences Payable 1,630,683 1,784,262 (1,630,683) 1,784,262 1,009,871 Capital Leases Payable 254,738 0 (189,874) 64,864 64,864 Net Pension Liability 22,807,669 0 (979,589) 21,828,080 0 Net OPEB Liability 15,382,785 3,902,573 0 19,285,358 0

Total Other Long-Term Obligations 40,075,875 5,686,835 (2,800,146) 42,962,564 1,074,735

Total Governmental Activities Long-Term Debt $66,123,846 $9,976,128 ($6,672,021) $69,427,953 $4,826,610

2018 MSC Bond Anticipation Notes

In March 2019, the City issued $1,800,000 of 2019 bond anticipation notes payable to renew the 2018

MSC bond anticipation notes payable, less $100,000 of principal retirement. As the new notes extended

the maturity date of the bond anticipation notes past 12 months after the date of the financial statements,

the bond anticipation notes will be treated as long-term obligations of the City.

2007 Various Improvement Refunding Bonds

The Various Improvement general obligation bonds are serial bonds issued for the purpose of advance

refunding a portion of the 2000 Various Improvement Bonds issued November 1, 2000 ($6,225,000).

The refunding was undertaken for the purpose of reducing interest rates and debt service on the prior

bonds. The 2007 bonds are not subject to redemption prior to maturity. The bonds mature on December

1, 2007 through December 1, 2017, and December 1, 2020 in the amount of $6,515,000, at a redemption

price equal to 100 percent of the principal plus accrued interest to the redemption date. The amount of

$6,673,981 from the 2007 bonds was placed in an escrow fund to defease the 2000 bonds which was

redeemed each June 1 and December 1 annually between 2007 and 2010. Bonds bear an interest rate

from 4.00 to 5.00%. These bonds will be retired from the City’s Debt Service Fund. $1,533,843 was

outstanding as of December 31, 2018.



DRAFT - 97 - 6/17/2019

NOTE 15- LONG-TERM DEBT (Continued)

2011 Facility Construction Bonds The Facility Construction general obligation bonds are serial bonds issued for the purpose of paying costs associated with designing, constructing, furnishing, and equipping a new police station and municipal courthouse facility. The bonds mature on December 1, 2020 through December 1, 2031, and December 1, 2020 in the amount of $14,585,000, at a redemption price equal to 100 percent of the principal plus accrued interest to the redemption date. Bonds bear an interest rate from 2.00 to 4.375%. These bonds will be retired from the City’s Debt Service Fund. $10,611,389 was outstanding as of December 31, 2018.

2014 Coleman’s Crossing Tax Increment Financing Bonds The Coleman’s Tax Increment Financing general obligation bonds are serial bonds issued for the purpose of financing certain public improvements within the Coleman’s Crossing Tax Increment Financing District. The bonds mature on December 1, 2034 in the amount of $10,730,000, at a redemption price equal to 100 percent of the principal plus accrued interest to the redemption date. Bonds bear an interest rate from 3.00 to 4.00%. These bonds will be retired from the City’s Coleman’s Crossing TIF Fund. $9,240,864 was outstanding as of December 31, 2018.

2014 Partners’ Park Construction Loan The Park Construction Loan is a loan issued for the purpose of constructing a new park called the Partners’ Park in the City of Marysville. Local businesses have agreed to make payments to the City over the next nine years in order to pay off the balance of the loan along with the City of Marysville. The final payment on the loan is scheduled for 2024 and the loan carries an interest rate of 3.99%. The loan had an outstanding balance of $790,000 at December 31, 2018.

2018 Cook’s Pointe Tax Increment Financing Special Obligation Bonds The Cook’s Pointe Tax Increment Financing special obligation bonds are serial bonds issued for the purpose of financing certain public improvements within the Cook’s Pointe Tax Increment Financing District. The bonds mature on December 1, 2049. The bonds are purchased at 100% of the principal amount advanced by the original purchaser, pursuant to the terms of the bonds, with the principal to be advanced not to exceed $4,870,000, with the initial draw in the amount of $128,532. The bonds shall be subject to redemption at the option of the City, either in whole or in part, in such order of maturity as the City shall determine, on any date prior to maturity at a redemption price equal to 100% of the principal amount redeemed plus, in each case, accrued interest to the dated fixed for redemption. The bonds bear an interest rate from 4.75%. These bonds will be retired from the City’s Coleman’s Crossing TIF Fund. $2,489,293 was outstanding as of December 31, 2018 with only interest paid during the year.




DRAFT - 98 - 5/30/2019


Balance Balance Amount Due

Date December 31, December 31, Within

Purchased Description 2017 Additions (Reductions) 2018 One Year


General Obligation Bond:

2015 Sewer System $9,865,000 $0 ($210,000) $9,655,000 $210,000

Mortgage Revenue Bonds:

2015 Sewer System Refunding 29,495,000 0 (990,000) 28,505,000 1,035,000

Premium on Sale of Bonds 1,513,252 0 (79,645) 1,433,607 79,645

2015 Sewer System Refunding 14,410,000 0 (245,000) 14,165,000 255,000

Premium on Sale of Bonds 868,054 0 (45,687) 822,367 45,687




Premium on Sale of Bonds 959,137 0 (55,396) 903,741 55,396

2016 Water System Refunding 18,280,000 0 (875,000) 17,405,000 875,000


Total Mortgage Revenue Bonds 145,383,599 0 (3,272,222) 142,111,377 3,342,222

Ohio Public Works Commission Loan:

Cherry Street and Ninth Street Water 384,387 0 (29,568) 354,819 29,568

Other Long-Term Obligations:

Compensated Absences Payable 506,662 535,965 (506,662) 535,965 263,537

Net Pension Liability 3,762,845 0 (1,050,944) 2,711,901 0

Net OPEB Liability 1,742,544 209,536 0 1,952,080 0

Total Other Long-Term Obligations 6,012,051 745,501 (1,557,606) 5,199,946 263,537

Total Business-Type Activities Long-Term Debt $161,645,037 $745,501 ($5,069,396) $157,321,142 $3,845,327




DRAFT - 99 - 5/30/2019


2015 Sewer System General Obligation Bonds

The Sewer System general obligation bonds are serial bonds issued to provide additional resources for

constructing and installing certain sewer treatment system improvements. The bonds mature on

December 1, 2047 in the amount of $10,270,000, at a redemption price equal to 100 percent of the

principal plus accrued interest to the redemption date. Bonds bear an interest rate from 2.00 to 4.00%.

These bonds will be retired from the City’s Sewer Fund. $9,655,000 was outstanding as of December 31,

2018.

2015 Sewer System Mortgage Revenue Refunding Bonds

The Sewer System Mortgage Revenue Bonds are term bonds issued to advance refund $31,470,000,

including a call premium of $2,757,302, of mortgage revenue bonds issued in 2006 and to currently

refund $14,875,000 of outstanding mortgage revenue bond anticipation notes issued in 2014 and to

provide additional resources for constructing and installing certain sewer treatment system improvements.

Refinancing of the bonds resulted in a cash savings of $2,972,847 (net present value savings of

$2,197,225) or 7.52%. The amount of $32,723,026 from the 2006 bonds was placed in an escrow fund to

defease the 2006 bonds. The refunding bonds are not included in the City’s debt since the City has in-

substance satisfied its obligations through the advance refunding. The bonds bear an interest rate from

3.00 to 5.00%. These bonds will be retired from the City’s Sewer Fund.




DRAFT - 100 - 5/30/2019


2015 Sewer System Mortgage Revenue Bonds (Continued)

Fund assets, whose uses are restricted under the bond indenture, are presented as restricted assets on the

statement of net position. Restricted assets relating to the sewer mortgage revenue bonds at December 31,

2018, were as follows:

2016 Sewer System Mortgage Revenue Refunding Bonds

The Sewer System Mortgage Revenue Bonds are term bonds issued to advance refund $79,125,000,

including a call premium of $3,265,785, of mortgage revenue bonds issued in 2006 and 2007.

Refinancing of the bonds resulted in a cash savings of $19,022,224 (net of funds on hand present value

savings of $7,710,179) or 3.51%. The amount of $83,254,632 from the 2006 and 2007 bonds was placed

in an escrow fund to defease the 2006 and 2007 bonds. The refunding bonds are not included in the

City’s debt since the City has in-substance satisfied its obligations through the advance refunding. The

bonds bear an interest rate from 2.00 to 5.00%. These bonds will be retired from the City’s Sewer Fund.

2016 Water System Mortgage Revenue Refunding Bonds

The Water System Mortgage Revenue Bonds are term bonds issued to advance refund $20,130,000,

including a call premium of $2,094,892, of mortgage revenue bonds issued in 2007. Refinancing of the

bonds resulted in a cash savings of $5,649,521 (net present value savings of $3,375,234) or 2.3%. The

amount of $21,303,469 from the 2007 bonds was placed in an escrow fund to defease the 2007 bonds.

The refunding bonds are not included in the City’s debt since the City has in-substance satisfied its

obligations through the advance refunding. The bonds bear an interest rate from 4.00 to 5.00%. These

bonds will be retired from the City’s Water Fund.

The City has pledged future customer revenues, net of specified operating expenses, to repay Water

Revenue Bonds, series 2016. A description of what these bonds have been used for can be found above.

The principal and interest remaining to be paid on these bonds is $24,582,650. Principal and interest paid

for the current year and total customer net revenues were $1,571,300 and $5,346,487, respectively.

The City has pledged future customer revenues, net of specified operating expenses, to repay Sewer

Revenue Bonds, series 2015 and 2016. A description of what these bonds have been used for can be

found above. The principal and interest remaining to be paid on these bonds is $201,011,156. Principal

and interest paid for the current year and total customer net revenues were $6,813,744 and $4,229,004,

respectively.

Restricted Assets Held by the Trustee

Mortgage Revenue Bond Current Debt Service $315,926

Mortgage Revenue Bond Reserve Fund $3,585,248



DRAFT - 101 - 6/19/2019

NOTE 15 - LONG-TERM DEBT (Continued)

A. Future Long-Term Financing Requirements

A summary of the City's future long-term debt funding requirements including principal and interest payments as of December 31, 2018 follows:


General Obligation Bonds/Notes Long-Term Loan

Years Principal Interest Principal Interest

2019 $3,600,000 $809,826 $120,000 $30,3252020 1,890,000 724,226 120,000 25,5372021 1,160,000 693,238 130,000 20,6472022 1,205,000 636,588 135,000 15,4612023 1,250,000 586,951 140,000 9,974

2024-2028 6,950,000 2,114,717 145,000 4,3892029-2033 6,205,000 727,585 0 0

2034 720,000 25,200 0 0

Totals $22,980,000 $6,318,331 $790,000 $106,333

The special obligation bond in the amount of $2,489,293 is not included in the above maturity tables. The construction has started, but a final amortization schedule will not be generated until the construction is completed. At that time, final principal and interest payments will be determined.




DRAFT - 102 - 5/30/2019

NOTE 15 - LONG-TERM DEBT (Continued)

A. Future Long-Term Financing Requirements (Continued)


General Obligation Bonds Mortgage Revenue Bonds OPWC Loans

Years Principal Interest Principal Interest Principal Interest

2019 $210,000 $334,900 $2,990,000 $5,368,594 $29,568 $0

2020 215,000 330,700 3,085,000 5,248,344 29,568 0

2021 220,000 326,400 3,190,000 5,115,194 29,568 0

2022 225,000 322,000 3,295,000 4,973,394 29,568 0

2023 230,000 316,938 3,400,000 4,826,744 29,568 0

2024-2028 1,250,000 1,486,188 18,780,000 21,958,770 147,841 0

2029-2033 1,475,000 1,272,346 21,815,000 18,052,196 59,138 0

2034-2038 1,745,000 993,020 25,885,000 13,754,195 0 0

2039-2043 2,100,000 387,824 43,300,000 10,558,600 0 0

2044-2047 1,985,000 202,200 9,380,000 617,775 0 0

Totals $9,655,000 $5,972,516 $135,120,000 $90,473,806 $354,819 $0

NOTE 16 - CAPITAL LEASES

The City leases equipment under two capital leases. The original cost of the equipment was $691,341 and

the related liability is reported in the Government-Wide Statement of Net Position.

The following is a schedule of future minimum lease payments under the capital lease together with the

present value of the net minimum lease payments as of December 31, 2018:

Capital

Year Ending December 31, Lease

2019 $66,077

Less amount representing

interest at the City's incremental

borrowing rate of interest (1,213)

Present value of minimum lease payments $64,864




DRAFT - 103 - 5/30/2019

NOTE 17 - 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. During 2018, the City contracted for

the following insurance coverage:

Type of Coverage Coverage Limit Deductible

Buildings $157,292,541 $5,000

Personal Property 5,513,648 5,000

Boiler and Machinery 100,000,000 5,000

Builders Risk 14,600,000 5,000

General Liability 5,000,000 0

Miscellaneous Property 3,097,265 500

Employee Benefit Liability 1,000,000 1,000

Wrongful Acts 5,000,000 1,000

Law Enforcement 5,000,000 2,000

Automobile Liability 5,000,000 0

Electronic Data Processing 25,000 – 1,882,062 500

Settled claims have not exceeded this commercial coverage in any of the past three years, and there has

not been any significant reduction in coverage from the prior year.

Workers’ Compensation claims are covered through the City’s participation in the State of Ohio’s

program. The City pays the State Workers’ Compensation System a premium based upon a rate per $100

of payroll. The rate is determined based on accident history and administrative costs. The City also pays

unemployment claims to the State of Ohio as incurred.




DRAFT - 104 - 6/17/2019

NOTE 18 - CONSTRUCTION COMMITMENTS

As of December 31, 2018, the City had the following commitments with respect to capital projects:

Remaining ExpectedConstruction Date of

Capital Projects Commitment Completion

Colemans Crossing Traffic Signal $93,443 2019Mill Wood Blvd Extension 2,347,128 2019Smart Mobility Grant 262,210 2019West 5th Street Design 63,343 2019SR 31 Widening 1,651,961 2019Innovation Park Signage 240,242 2019Plum Street and Park Design 81,925 2019MUNIS Utility Billing Module 10,654 2019Pump Station 2 Design 2,119 2019West 5th Street Sanitary 152,815 2019Stone for Capital Project 5,714 2019Stormwater Design Improvements 15,213 2019

Total $4,926,767

NOTE 19 - CONTINGENCIES

The City is a party to various legal proceedings, which seek damages or injunctive relief generally incidental to its operations and pending projects. The City's management is of the opinion that the ultimate disposition of various claims and legal proceedings will not have a material effect, if any, on the financial condition of the City.




DRAFT - 105 - 5/30/2019

NOTE 20 - JOINTLY GOVERNED ORGANIZATIONS

Marysville/Union County Joint Recreation District

The Marysville/Union County Joint Recreation District (the District) is a jointly governed organization

involving the City of Marysville, Union County, and Paris Township. The District was established for

acquiring, developing, operating, and maintaining a sports complex and bicycle/walking trail in Union

County. The District’s Board of Trustees consists of seven members, three appointed by the Mayor of

Marysville, three appointed by the County Commissioners, and one appointed by the Paris Township

Board of Trustees.

Union County Community Improvement Corporation

The Union County Community Improvement Corporation (the Corporation), a non-profit corporation,

was established to assist in the financing of economic and industrial development in Union County. It is

the responsibility of the Corporation to provide building, zoning, and land controls for the County,

townships, and municipal corporations. The Board of Trustees consists of not less than three nor more

than twenty-five trustees as such number is fixed by the members from time to time. Two-fifths of the

Board of Trustees are composed of appointed or elected officers of such political subdivisions. The

Corporation can issue its own debt and is not fiscally dependent on the City. The City of Marysville does

not have an ongoing financial interest and/or responsibility with this organization.

Mid-Ohio Regional Planning Commission

The City is a participant in the Mid-Ohio Regional Planning Commission (MORPC), a jointly governed

organization. MORPC is composed of 74 representatives appointed by member governments who make

up the commission, the policy-making body of MORPC, and the oversight board. MORPC is a voluntary

association of local governments in central and south-central Ohio and a regional planning agency whose

membership includes 42 political subdivisions in and around Franklin, Ross, Fayette, Delaware,

Pickaway, Madison, Licking, and Fairfield counties, Ohio. The purpose of the organization is to improve

the quality of life for member communities by improving housing conditions, to promote and support

livability/sustainability measures as a means of addressing regional growth challenges, and to administer

and facilitate the availability of regional environmental infrastructure program funding to the full

advantage of MORPC’s members.

Marysville/Union County Port Authority

The Marysville/Union County Port Authority (the Authority) is a jointly governed organization involving

the City of Marysville and Union County. The Authority was established to enhance, foster, aid, provide

or promote transportation, economic development, housing, recreation, education, governmental

operations, culture, research, and the creation and preservation of jobs and employment opportunities in

Union County. The Authority’s Board of Trustees consists of seven members, three appointed by the

Mayor of Marysville with the advice and consent of City Council, three appointed by the County

Commissioners, and one appointed by the Mayor of Marysville with the advice and consent of the City

Council and the County Commissioners.

Union County Council of Governments (COG) – The Council of Governments (COG) is a jointly

governed organization involving the City of Marysville, Union County, and Marysville Exempted Village

School District. The COG was established to work together in an innovative and collaborative way and

bring new technology and shared services to each member of the Council of Governments to meet current

and future needs. The COG’s board consist of one member from each entity.




DRAFT - 106 - 5/30/2019

NOTE 21 – SIGNIFICANT COMMITMENTS

Significant encumbrances outstanding at year-end in the General Fund are $134,468 and are reported as

assigned fund balance. Also, in the Street Maintenance Fund (special revenue fund), and in the CIP Fund

(capital projects fund) there are significant encumbrances outstanding in the amounts of $42,691 and

$1,066,906, respectively. These amounts are reported as part of the restricted and unassigned fund

balances, respectively.

NOTE 22 - SUBSEQUENT EVENT

On March 27, 2019 the City issued $1,800,000 in one year General Obligation Notes to pay for Various

Improvements within the City. The notes, which mature on March 27, 2020, have an interest rate of

3.0%.


DRAFT - 107 - 5/30/2019

REQUIRED SUPPLEMENTAL INFORMATION


DRAFT - 108 - 5/30/2019

Schedule of City’s Proportionate Share of the Net Pension Liability

Last Five Years

Year 2014 2015 2016

City's proportion of the net pension

liability (asset) 0.041447% 0.041447% 0.043217%

City's proportionate share of the net

pension liability (asset) $4,886,061 $4,998,971 $7,485,699

City's covered payroll $5,383,100 $5,029,150 $6,144,925


pension liability (asset) as a percentage

of its covered payroll 90.77% 99.40% 121.82%

Plan fiduciary net position as a

percentage of the total pension

liability 86.36% 86.45% 81.08%

Source: Finance Director's Office and the Ohio Public Employees Retirement System

Year 2014 2015 2016

City's proportion of the net pension

liability (asset) 0.2542020% 0.2542020% 0.266357%


pension liability (asset) $12,380,435 $13,168,723 $17,134,926



pension liability (asset) as a percentage

of its covered payroll 271.86% 249.53% 346.79%

Plan fiduciary net position as a

percentage of the total pension

liability 73.00% 72.20% 66.77%

Source: Finance Director's Office and the Ohio Police and Fire Pension Fund

Notes: The City implemented GASB Statement 68 in 2015.

Information prior to 2014 is not available.

The schedule is reported as of the measurement date of the Net Pension Liability.

See accompanying notes to required supplementary information

Ohio Public Employees Retirement System

Ohio Police and Fire Pension Fund


DRAFT - 109 - 5/30/2019

2017 2018

0.042688% 0.044418%

$9,693,733 $6,968,253

$5,609,933 $5,695,600

172.80% 122.34%

77.25% 84.66%

2017 2018

0.266451% 0.286303%

$16,876,781 $17,571,728

$6,425,132 $6,620,931

262.67% 265.40%

68.36% 70.91%


DRAFT - 110 - 5/30/2019

Schedule of City Pension Contributions

Last Six Years


Year 2013 2014 2015

Contractually required contribution $699,803 $603,498 $737,391

Contributions in relation to the

contractually required contribution 699,803 603,498 737,391

Contribution deficiency (excess) $0 $0 $0


Contributions as a percentage of 13.00% 12.00% 12.00%

covered payroll



Year 2013 2014 2015

Contractually required contribution $777,831 $1,074,491 $992,643


contractually required contribution 777,831 1,074,491 992,643




covered payroll






DRAFT - 111 - 5/30/2019

2016 2017 2018

$673,192 $740,428 $869,072

673,192 740,428 869,072

$0 $0 $0

$5,609,933 $5,695,600 $6,207,657

12.00% 13.00% 14.00%

2016 2017 2018

$1,290,809 $1,330,145 $1,387,580

1,290,809 1,330,145 1,387,580

$0 $0 $0

$6,425,132 $6,620,931 $6,906,819

20.09% 20.09% 20.09%


DRAFT - 112 - 5/30/2019


DRAFT - 113 - 6/17/2019

Schedule of City’s Proportionate Share of the Net Other Postemployment Benefits (OPEB) Liability Last Two Years

Year 2017 2018

City's proportion of the net OPEBliability (asset) 0.044330% 0.046190%

City's proportionate share of the netOPEB liability (asset) $4,477,483 $5,015,892

City's covered payroll $5,609,933 $5,695,600

City's proportionate share of the netOPEB liability (asset) as a percentageof its covered payroll 79.81% 88.07%

Plan fiduciary net position as apercentage of the total OPEBliability 54.50% 54.14%


Year 2017 2018

City's proportion of the net OPEBliability (asset) 0.266451% 0.286303%

City's proportionate share of the netOPEB liability (asset) $12,647,846 $16,221,546

City's covered payroll $6,425,132 $6,620,931

City's proportionate share of the netOPEB liability (asset) as a percentageof its covered payroll 196.85% 245.00%

Plan fiduciary net position as apercentage of the total OPEBliability 15.96% 14.13%


Notes: The City implemented GASB Statement 75 in 2018. Information prior to 2017 is not available. The schedule is reported as of the measurement date of the Net OPEB Liability.





DRAFT - 114 - 5/30/2019

Schedule of City’s Other Postemployment Benefit (OPEB) Contributions

Last Six Years


Year 2013 2014 2015







covered payroll



Year 2013 2014 2015







covered payroll






DRAFT - 115 - 5/30/2019

2016 2017 2018

$112,199 $56,956 $0

112,199 56,956 0

$0 $0 $0

$5,609,933 $5,695,600 $6,207,657

2.00% 1.00% 0.00%

2016 2017 2018

$32,126 $31,023 $32,365

32,126 31,023 32,365

$0 $0 $0

$6,425,132 $6,620,931 $6,906,819

0.50% 0.50% 0.50%


Notes to the Required Supplemental Information


DRAFT - 116 - 5/30/2019

OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM (OPERS)

Changes in benefit terms: There were no changes in benefit terms for the period 2014-2018.

Changes in assumptions:

2014-2016: There were no changes in methods and assumptions used in the calculation of actuarial

determined contributions.

2017: The following were the most significant changes of assumptions that affected total pension

liability since the prior measurement date

- Reduction in actuarial assumed rate of return from 8.00% to 7.50%

- Decrease in wage inflation from 3.75% to 3.25%

- Change in future salary increases from a range of 4.25%-10.02% to 3.25%-10.75%

2018: There were no changes in methods and assumptions used in the calculation of actuarial determined

contributions.

OHIO POLICE AND FIRE (OP&F) PENSION FUND

Changes in benefit terms: There were no changes in benefit terms for the period 2014-2018.

Changes in assumptions:

2014-2017: There were no changes in methods and assumptions used in the calculation of actuarial

determined contributions.

2018: The following were the most significant changes of assumptions that affected total pension

liability since the prior measurement date.

- Reduction in actuarial assumed rate of return from 8.25% to 8.00%

- Decrease salary increases from 3.75% to 3.25%

- Change in payroll growth from 3.75% to 3.25%

- Reduce DROP interest rate from 4.5% to 4.0%

- Reduce CPI-based COLA from 2.6% to 2.2%

- Inflation component reduced from 3.25% to 2.75%


Notes to the Required Supplemental Information


DRAFT - 117 - 5/30/2019

NET OPEB LIABILITY

OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM (OPERS)

Changes in benefit terms: For 2018, there were no changes in benefit terms.

Changes in assumptions: For 2018, the single discount rate changed from 4.23% to 3.85%.

OHIO POLICE AND FIRE (OP&F)

Changes in benefit terms: For 2018, there were no changes in benefit terms.

Changes in assumptions: For 2018, the single discount rate changed from 3.79% to 3.24%.


DRAFT - 118 - 5/30/2019


DRAFT - 119 - 5/30/2019

COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES

THE FOLLOWING COMBINING STATEMENTS AND SCHEDULES INCLUDE

THE MAJOR AND NONMAJOR GOVERNMENTAL FUNDS, AND

FIDUCIARY FUNDS.


DRAFT - 120 - 5/30/2019

Nonmajor Governmental Funds

Special Revenue Funds

Special Revenue Funds are used to account for the proceeds of specific revenue sources (other

than amounts relating to major capital projects) that are legally restricted or committed to

expenditures for specified purposes.

Veyance Incentive Fund To account for the transfer of non-tax revenues to be expended as revenue sharing for a

financial incentive negotiated with the Veyance Company(The Balance Sheet and

Statement of Revenues, Expenditures and Changes in Fund Balances are not presented

because this fund is reported as part of the General Fund on a GAAP basis.)

Univenture Financial Incentive Fund To account for the transfer of non-tax revenues to be expended as revenue sharing for a

financial incentive negotiated with the Univenture Company. (The Balance Sheet and

Statement of Revenues, Expenditures and Changes in Fund Balances are not presented

because this fund is reported as part of the General Fund on a GAAP basis.)

Enterprise Zone Revenue Fund To account for the Enterprise Zone Agreement between the City of Marysville and the

Marysville School District. (The Balance Sheet and Statement of Revenues, Expenditures

and Changes in Fund Balances are not presented because this fund is reported as part of

the General Fund on a GAAP basis.)

Street Tree Fund To accumulate dedicated revenues for the financial support of expenditures associated

with the Urban Forestry Program.

Pool Fund To account for specific revenues and expenditures necessary to operate the municipal

pool.

City Events Fund To account for all revenues and expenditures associated with City sponsored events.

Police Pension Fund To account for property taxes levied for the partial payment of the current and accrued

liability for police disability and pension.

Fire Pension Fund To account for property taxes levied for the partial payment of the current and accrued

liability for fire disability and pension.

(Continued)


DRAFT - 121 - 5/30/2019

Special Revenue Funds (Continued)

Police Grant Fund To account for grant revenues and expenditures associated with the Police Department.

Fire Grant Fund To account for grant revenues and expenditures associated with the Fire Department.

Street Maintenance Fund To account for that portion of the state levied and controlled gasoline tax and motor

vehicle license fees designated for local street construction, maintenance and repair.

Ninety-two and one-half percent of the tax and fees are allocated to this fund.

Law Enforcement Trust Fund To account for the proceeds from the confiscation of contraband.

Mandatory Drug Fine Fund To account for mandatory fines collected for drug agencies.

Driving Under the Influence (DUI) Alcohol Education And Enforcement Fund To account for fines imposed on DUI offenders. Under state law, disbursements may be

made from this fund for law enforcement purposes related to informing the public of laws

governing the operation of a motor vehicle while under the influence of alcohol.

Driving Under the Influence (DUI) Indigent Drivers Treatment Fund To account for fines imposed on DUI offenders. Under state law, disbursements may be

made from this fund for law enforcement purposes related to treatment services for those

persons who cannot afford such services.

State Highway Fund To account for that portion of the state levied and controlled gasoline tax and motor

vehicle license fees designated for the maintenance and repair of state highways within

the City. Seven and one-half percent of the tax and fees are allocated to this fund.

Court Computer and Research Fund To account for revenues from fines to be used for providing information technology

systems to the Municipal Court and for periodic upgrades to these systems.

Municipal Court Computer Fund To account for revenues from fines to be used for providing information technology

systems to the Municipal Court and for periodic upgrades to these systems.

(Continued)


DRAFT - 122 - 5/30/2019

Special Revenue Funds (Continued)

Municipal Court Special Projects Fund To account for revenues from fines to be used for providing for other specific items that

may arise.

Court Probation Fee Fund To account for fees designated to the Municipal Court for the operation of the probation

program.

Eljer Park Fund To account for the insurance liability for Eljer Park.

Cemetery Maintenance Fund To provide funding for the maintenance of the city owned cemetery.

Cemetery Endowment Fund To account for donations to the cemetery whose use is specified for cemetery operations.

Municipal Court Local Interlock Fund To account for the fines assessed by the City of Marysville for certain DUI cases.

Monies collected are to be used for the purchase and installation of an

interlock/immobilization device to prevent usage of a motor vehicle by intoxicated

drivers.

Municipal Court State Interlock Fund To account for the fines assessed by the State of Ohio for certain DUI cases. Monies

collected are to be used for the purchase and installation of an interlock/immobilization

device to prevent usage of a motor vehicle by intoxicated drivers.

Community Housing Improvement Program (CHIP) Grant Fund To account for grant revenues and expenditures associated with the CHIP program.

Federal Law Enforcement Fund To account for federal proceeds from the confiscation of contraband.

(Continued)


DRAFT - 123 - 5/30/2019

Debt Service Funds

The Debt Service Funds are used to account for the accumulation of resources and payment of

general obligation bond principal and interest from governmental resources and special

assessment levies when the government is obligated in some manner for the payment.

Partners Park Fund To account for monies pledged by area businesses for the construction of Partners Park

(Only the Balance Sheet is presented for this fund as there is no activity for the year in the

Statement of Revenues, Expenditures and Changes in Fund Balances. This fund is not

part of the City’s appropriated budget; therefore no budgetary schedule is presented.)

Capital Projects Funds

The Capital Projects Funds are used to account for the financial resources to be used for the

acquisition or construction of major capital facilities, other than those financed by proprietary

or trust funds.

Parkland Development Fund To account for park impact/capacity fees collected to be used to provide neighborhood

parks and to make capital improvements to land provided to the City by developers.

ODNR Grant Fund To account for grant revenues and expenditures associated with the ODNR program.

OPWC Grant Fund To account for grant revenues and expenditures associated with the OPWC program.

Community Development Block Grant (CDBG) Formula Grant Fund To account for grant revenues and expenditures associated with the CDBG Formula

program.

(Continued)


DRAFT - 124 - 5/30/2019

Capital Projects Funds (Continued)

The Capital Projects Funds are used to account for the financial resources to be used for the

acquisition or construction of major capital facilities, other than those financed by proprietary

or trust funds.

Pedestrian Bridge Fund To account for the activity related to the construction of a pedestrian bridge over US 33.

Safe Routes to Schools Grant Fund To account for the activity related to the capital improvements funded by the Safe Routes

to School Grant.

Town Run Restoration Fund To account for grant revenues and expenditures associated with the Town Run

Restoration project.

City Development Grant Fund To account for grant proceeds to be used for City wide developments.

NW 33 Grant Fund To account for grant revenues and expenditures associated with the Route 33

Construction project.

State Route 31 Fund To account for grant proceeds to be used for State Route 31 improvements.


DRAFT - 125 - 5/30/2019


DRAFT - 126 - 5/30/2019

Combining Balance Sheet


December 31, 2018

Nonmajor

Special Revenue

Funds

Nonmajor Debt

Service Fund

Nonmajor

Capital Projects

Funds

Total Nonmajor

Governmental

Funds

Assets:

Cash and Cash Equivalents 2,715,972$ 0$ 1,143,356$ 3,859,328$

Receivables:

Accounts 436 337,500 0 337,936

Intergovernmental 485,925 0 2,796 488,721

Property Taxes 251,384 0 0 251,384

Prepaid Items 32,401 0 0 32,401

Total Assets 3,486,118$ 337,500$ 1,146,152$ 4,969,770$

Liabilities:

Accounts Payable 141,406$ 0$ 0$ 141,406$

Accrued Wages and Benefits Payable 10,339 0 0 10,339

Intergovernmental Payable 8,688 0 0 8,688

Contracts Payable 0 0 89,460 89,460

Interfund Loans Payable 0 0 336,592 336,592

Total Liabilities 160,433 0 426,052 586,485


Unavailable Amounts 341,175 337,500 0 678,675

Property Tax Levy for Next Fiscal Year 238,802 0 0 238,802

Total Deferred Inflows of Resources 579,977 337,500 0 917,477

Fund Balances:

Nonspendable 32,401 0 0 32,401

Restricted 2,473,284 0 501,574 2,974,858

Committed 272,219 0 218,526 490,745

Unassigned (32,196) 0 0 (32,196)

Total Fund Balances 2,745,708 0 720,100 3,465,808


and Fund Balances 3,486,118$ 337,500$ 1,146,152$ 4,969,770$


DRAFT - 127 - 5/30/2019

Combining Statement of Revenues, Expenditures and Changes in Fund Balance



Nonmajor

Special Revenue

Funds

Nonmajor

Capital Projects

Funds

Total Nonmajor

Governmental

Funds

Revenues:

Property Taxes 226,928$ 0$ 226,928$

Intergovernmental Revenues 992,261 2,148,737 3,140,998

Charges for Services 266,884 0 266,884

Licenses and Permits 236,339 141,273 377,612

Investment Earnings 3,256 0 3,256

Fines and Forfeitures 169,341 0 169,341

All Other Revenue 117,605 0 117,605

Total Revenue 2,012,614 2,290,010 4,302,624

Expenditures:

Current:

Security of Persons and Property - Police 133,128 0 133,128

Security of Persons and Property - Fire 130,099 0 130,099

Security of Persons and Property - Other 47,179 0 47,179

Leisure Time Activities 207,967 0 207,967

Community Environment 105,920 0 105,920

Transportation 1,326,628 0 1,326,628

General Government 250,164 0 250,164

Capital Outlay 0 1,805,972 1,805,972



Over Expenditures (188,471) 484,038 295,567


Transfers In 276,087 0 276,087

Transfers Out 0 (43,906) (43,906)

Total Other Financing Sources (Uses) 276,087 (43,906) 232,181

Net Change In Fund Balance 87,616 440,132 527,748

Fund Balances at Beginning of Year 2,658,092 279,968 2,938,060

Fund Balances End of Year 2,745,708$ 720,100$ 3,465,808$


DRAFT - 128 - 5/30/2019


Nonmajor Special Revenue Funds

December 31, 2018

Street Tree Pool City Events Police Pension

Assets:

Cash and Cash Equivalents 194,345$ 8,527$ 29,525$ 17,031$

Receivables:

Accounts 0 0 0 0

Intergovernmental 0 25 522 6,372

Property Taxes 0 0 0 125,692

Prepaid Items 673 1,299 7,620 0

Total Assets 195,018$ 9,851$ 37,667$ 149,095$

Liabilities:

Accounts Payable 559$ 1,714$ 60,955$ 0$

Accrued Wages and Benefits Payable 1,345 119 454 0

Intergovernmental Payable 750 68 834 0

Total Liabilities 2,654 1,901 62,243 0


Unavailable Amounts 0 0 0 12,663

Property Tax for Next Fiscal Year 0 0 0 119,401

Total Deferred Inflows of Resources 0 0 0 132,064

Fund Balances:

Nonspendable 673 1,299 7,620 0

Restricted 0 0 0 17,031

Committed 191,691 6,651 0 0

Unassigned 0 0 (32,196) 0

Total Fund Balances 192,364 7,950 (24,576) 17,031


and Fund Balances 195,018$ 9,851$ 37,667$ 149,095$


DRAFT - 129 - 5/30/2019

Fire Pension Police Grant Fire Grant

Street

Maintenance

Law

Enforcement

Trust

Mandatory Drug

Fine

17,031$ 12,855$ 11,788$ 42,784$ 206,508$ 113,630$

0 0 0 354 0 0

6,372 0 0 427,260 0 300

125,692 0 0 0 0 0

0 0 0 19,891 0 0

149,095$ 12,855$ 11,788$ 490,289$ 206,508$ 113,930$

0$ 0$ 0$ 43,481$ 542$ 0$

0 0 0 8,421 0 0

0 0 0 7,036 0 0

0 0 0 58,938 542 0

12,663 0 0 292,502 0 0

119,401 0 0 0 0 0

132,064 0 0 292,502 0 0

0 0 0 19,891 0 0

17,031 12,855 11,788 118,958 205,966 113,930

0 0 0 0 0 0

0 0 0 0 0 0

17,031 12,855 11,788 138,849 205,966 113,930

149,095$ 12,855$ 11,788$ 490,289$ 206,508$ 113,930$

(Continued)


DRAFT - 130 - 5/30/2019



December 31, 2018

DUI Alcohol

Education and

Enforcement

DUI Indigent

Drivers

Treatement State Highway

Federal Law

Enforcement

Assets:


Receivables:

Accounts 0 0 28 0

Intergovernmental 100 0 34,262 0

Property Taxes 0 0 0 0

Prepaid Items 0 0 2,918 0

Total Assets 33,224$ 169,406$ 59,566$ 1,248$

Liabilities:

Accounts Payable 97$ 0$ 797$ 0$

Accrued Wages and Benefits Payable 0 0 0 0


Total Liabilities 97 0 797 0


Unavailable Amounts 0 0 23,347 0

Property Tax for Next Fiscal Year 0 0 0 0

Total Deferred Inflows of Resources 0 0 23,347 0

Fund Balances:

Nonspendable 0 0 2,918 0

Restricted 33,127 169,406 32,504 1,248

Committed 0 0 0 0

Unassigned 0 0 0 0

Total Fund Balances 33,127 169,406 35,422 1,248




DRAFT - 131 - 5/30/2019

Court Computer

and Research

Municipal Court

Computer

Municipal Court

Special Projects

Court Probation

Fee Eljer Park

Cemetery

Maintenance

337,124$ 191,133$ 516,591$ 267,502$ 31,523$ 31,044$

0 0 0 0 0 0

1,743 1,747 3,858 957 0 0

0 0 0 0 0 0

0 0 0 0 0 0

338,867$ 192,880$ 520,449$ 268,459$ 31,523$ 31,044$

0$ 33,261$ 0$ 0$ 0$ 0$

0 0 0 0 0 0

0 0 0 0 0 0

0 33,261 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

338,867 159,619 520,449 268,459 0 0

0 0 0 0 31,523 31,044

0 0 0 0 0 0

338,867 159,619 520,449 268,459 31,523 31,044

338,867$ 192,880$ 520,449$ 268,459$ 31,523$ 31,044$

(Continued)


DRAFT - 132 - 5/30/2019



December 31, 2018

Cemetery

Endowment

Municipal Court

Local Interlock

Municipal Court

State Interlock CHIP Grant

Assets:


Receivables:

Accounts 54 0 0 0

Intergovernmental 0 1,003 1,404 0

Property Taxes 0 0 0 0

Prepaid Items 0 0 0 0

Total Assets 11,310$ 173,958$ 227,699$ 50,389$

Liabilities:

Accounts Payable 0$ 0$ 0$ 0$

Accrued Wages and Benefits Payable 0 0 0 0




Unavailable Amounts 0 0 0 0

Property Tax for Next Fiscal Year 0 0 0 0

Total Deferred Inflows of Resources 0 0 0 0

Fund Balances:

Nonspendable 0 0 0 0

Restricted 0 173,958 227,699 50,389

Committed 11,310 0 0 0

Unassigned 0 0 0 0





DRAFT - 133 - 5/30/2019

Total Nonmajor

Special Revenue

Funds

2,715,972$

436

485,925

251,384

32,401

3,486,118$

141,406$

10,339

8,688

160,433

341,175

238,802

579,977

32,401

2,473,284

272,219

(32,196)

2,745,708

3,486,118$


DRAFT - 134 - 5/30/2019




Street Tree Pool City Events Police Pension

Revenues:

Property Taxes 0$ 0$ 0$ 113,464$

Intergovernmental Revenues 25,000 25 995 12,691

Charges for Services 0 174,582 89,038 0

Licenses and Permits 157,165 0 0 0

Investment Earnings 0 0 0 0

Fines and Forfeitures 0 0 0 0

All Other Revenue 0 0 0 0

Total Revenue 182,165 174,607 90,033 126,155

Expenditures:

Current:

Security of Persons and Property - Police 0 0 0 130,099

Security of Persons and Property - Fire 0 0 0 0

Security of Persons and Property - Other 0 0 0 0

Leisure Time Activities 0 207,967 0 0

Community Enviornment 105,920 0 0 0

Transportation 0 0 0 0

General Government 0 0 250,164 0

Total Expenditures 105,920 207,967 250,164 130,099


Over Expenditures 76,245 (33,360) (160,131) (3,944)


Transfers In 0 0 173,587 0

Total Other Financing Sources (Uses) 0 0 173,587 0

Net Change In Fund Balance 76,245 (33,360) 13,456 (3,944)

Fund Balances (Deficit) at Beginning of Year 116,119 41,310 (38,032) 20,975

Fund Balances (Deficit) End of Year 192,364$ 7,950$ (24,576)$ 17,031$


DRAFT - 135 - 5/30/2019

Fire Pension Police Grant Fire Grant

Street

Maintenance

Law

Enforcement

Trust

Mandatory

Drug Fine

113,464$ 0$ 0$ 0$ 0$ 0$

12,691 792 0 860,419 0 0

0 0 0 0 0 0

0 0 0 75,451 0 0

0 0 0 2,063 0 0

0 0 0 0 0 3,755

0 0 0 22,190 83,092 0

126,155 792 0 960,123 83,092 3,755

0 1,040 0 0 1,892 0

130,099 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 1,209,433 0 0

0 0 0 0 0 0

130,099 1,040 0 1,209,433 1,892 0

(3,944) (248) 0 (249,310) 81,200 3,755

0 0 0 102,500 0 0

0 0 0 102,500 0 0

(3,944) (248) 0 (146,810) 81,200 3,755

20,975 13,103 11,788 285,659 124,766 110,175

17,031$ 12,855$ 11,788$ 138,849$ 205,966$ 113,930$

(Continued)


DRAFT - 136 - 5/30/2019




DUI Acohol

Education and

Enforcement

DUI Indigent

Drivers

Treatment State Highway

Federal Law

Enforcement

Revenues:

Property Taxes 0$ 0$ 0$ 0$

Intergovernmental Revenues 0 0 74,365 0

Charges for Services 0 0 0 0

Licenses and Permits 0 0 0 0


Fines and Forfeitures 1,154 0 0 0

All Other Revenue 0 0 12,323 0

Total Revenue 1,154 0 87,356 0

Expenditures:

Current:

Security of Persons and Property - Police 97 0 0 0



Leisure Time Activities 0 0 0 0

Community Enviornment 0 0 0 0

Transportation 0 0 117,195 0

General Government 0 0 0 0

Total Expenditures 97 0 117,195 0


Over Expenditures 1,057 0 (29,839) 0


Transfers In 0 0 0 0

Total Other Financing Sources (Uses) 0 0 0 0

Net Change In Fund Balance 1,057 0 (29,839) 0

Fund Balances (Deficit) at Beginning of Year 32,070 169,406 65,261 1,248

Fund Balances (Deficit) End of Year 33,127$ 169,406$ 35,422$ 1,248$


DRAFT - 137 - 5/30/2019

Court Computer

and Research

Municipal Court

Computer

Municipal Court

Special Projects

Court Probation

Fee Eljer Park

Cemetery

Maintenance

0$ 0$ 0$ 0$ 0$ 0$

0 0 0 0 0 0

0 0 3,264 0 0 0

0 0 0 0 0 3,723

0 0 0 0 0 0

25,786 25,885 58,313 13,852 0 0

0 0 0 0 0 0

25,786 25,885 61,577 13,852 0 3,723

0 0 0 0 0 0

0 0 0 0 0 0

0 46,630 549 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 46,630 549 0 0 0

25,786 (20,745) 61,028 13,852 0 3,723

0 0 0 0 0 0

0 0 0 0 0 0

25,786 (20,745) 61,028 13,852 0 3,723

313,081 180,364 459,421 254,607 31,523 27,321

338,867$ 159,619$ 520,449$ 268,459$ 31,523$ 31,044$

(Continued)


DRAFT - 138 - 5/30/2019




Cemetery

Endowment

Municipal Court

Local Interlock

Municipal Court

State Interlock CHIP Grant

Revenues:

Property Taxes 0$ 0$ 0$ 0$

Intergovernmental Revenues 0 0 0 5,283

Charges for Services 0 0 0 0

Licenses and Permits 0 0 0 0


Fines and Forfeitures 0 19,437 21,159 0

All Other Revenue 0 0 0 0

Total Revenue 525 19,437 21,159 5,283

Expenditures:

Current:

Security of Persons and Property - Police 0 0 0 0



Leisure Time Activities 0 0 0 0

Community Enviornment 0 0 0 0

Transportation 0 0 0 0

General Government 0 0 0 0

Total Expenditures 0 0 0 0


Over Expenditures 525 19,437 21,159 5,283


Transfers In 0 0 0 0


Net Change In Fund Balance 525 19,437 21,159 5,283

Fund Balances (Deficit) at Beginning of Year 10,785 154,521 206,540 45,106

Fund Balances (Deficit) End of Year 11,310$ 173,958$ 227,699$ 50,389$


DRAFT - 139 - 5/30/2019

Total

Nonmajor

Special

Revenue Funds

226,928$

992,261

266,884

236,339

3,256

169,341

117,605

2,012,614

133,128

130,099

47,179

207,967

105,920

1,326,628

250,164

2,201,085

(188,471)

276,087

276,087

87,616

2,658,092

2,745,708$


DRAFT - 140 - 5/30/2019


Nonmajor Capital Projects Funds

December 31, 2018

Parkland

Development ODNR Grant OPWC Grant

CDBG Formula

Grant

Assets:


Receivables:

Intergovernmental 0 0 0 0

Total Assets 218,526$ 7,253$ 96,914$ 18,411$

Liabilities:

Contracts Payable 0 0 0 0

Interfund Loans Payable 0 0 0 0


Fund Balances:

Restricted 0 7,253 96,914 18,411

Committed 218,526 0 0 0


Total Liabilities and Fund Balances 218,526$ 7,253$ 96,914$ 18,411$


DRAFT - 141 - 5/30/2019

Safe Routes to

School Grant

Town Run

Restoration

City

Development

Grant

Northwest 33

Grant

Total Nonmajor

Capital Projects

Funds

123,601$ 7,451$ 23,996$ 647,204$ 1,143,356$

0 0 0 2,796 2,796

123,601$ 7,451$ 23,996$ 650,000$ 1,146,152$

0 0 0 89,460 89,460

119,925 0 0 216,667 336,592

119,925 0 0 306,127 426,052

3,676 7,451 23,996 343,873 501,574

0 0 0 0 218,526

3,676 7,451 23,996 343,873 720,100

123,601$ 7,451$ 23,996$ 650,000$ 1,146,152$


DRAFT - 142 - 5/30/2019




Parkland

Development ODNR Grant OPWC Grant

CDBG Formula

Grant

Revenues:

Intergovernmental Revenues 0$ 0$ 0$ 0$

Licenses and Permits 141,273 0 0 0

Total Revenue 141,273 0 0 0

Expenditures:

Capital Outlay 0 0 0 0



Over Expenditures 141,273 0 0 0


Transfers Out 0 0 0 0


Net Change In Fund Balance 141,273 0 0 0

Fund Balances at Beginning of Year 77,253 7,253 96,914 18,411

Fund Balances End of Year 218,526$ 7,253$ 96,914$ 18,411$


DRAFT - 143 - 5/30/2019

Pedestrian

Bridge

Safe Routes to

School Grant

Town Run

Restoration

City

Development

Grant

Northwest 33

Grant State Route 31

Total Nonmajor

Capital Project

Funds

0$ 280,118$ 0$ 0$ 564,438$ 1,304,181$ 2,148,737$

0 0 0 0 0 0 141,273

0 280,118 0 0 564,438 1,304,181 2,290,010

0 281,226 0 0 220,565 1,304,181 1,805,972

0 281,226 0 0 220,565 1,304,181 1,805,972

0 (1,108) 0 0 343,873 0 484,038

(43,906) 0 0 0 0 0 (43,906)

(43,906) 0 0 0 0 0 (43,906)

(43,906) (1,108) 0 0 343,873 0 440,132

43,906 4,784 7,451 23,996 0 0 279,968

0$ 3,676$ 7,451$ 23,996$ 343,873$ 0$ 720,100$


Schedule of Revenues, Expenditures and Changes in


Major Funds – General Fund


DRAFT - 144 - 5/30/2019

(Continued)

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Property Taxes 1,531,500$ 1,531,500$ 1,479,868$ (51,632)$

Municipal Income Taxes 17,584,100 18,135,100 19,037,168 902,068

Other Local Taxes 440,000 440,000 367,720 (72,280)

Intergovernmental Revenues 372,698 372,698 390,807 18,109

Charges for Services 2,138,529 2,450,093 2,499,446 49,353

Licenses and Permits 154,000 154,000 154,937 937

Investment Earnings 120,000 231,650 232,786 1,136

Donations 0 0 1 1

Fines and Forfeitures 651,500 651,500 647,407 (4,093)


Total Revenues 23,013,327 23,987,541 24,843,667 856,126

Expenditures:

Security of Persons and Property:

Police:

Personal Services 4,879,361 4,880,215 4,867,649 12,566

Materials and Supplies 98,200 101,420 90,142 11,278

Contractual Services 238,694 243,186 211,428 31,758

Total Police 5,216,255 5,224,821 5,169,219 55,602

Fire:

Personal Services 5,577,912 5,582,896 5,340,998 241,898



Total Fire 5,993,990 6,007,564 5,737,378 270,186

Municipal Court:

Personal Services 749,157 774,657 760,281 14,376



Total Municipal Court 911,257 912,263 877,006 35,257

Total Security of Persons and Property 12,121,502 12,144,648 11,783,603 361,045






DRAFT - 145 - 5/30/2019

(Continued)

Original


Variance with

Final Budget

Positive

(Negative)

Public Health and Welfare Services:

Cemetery:

Street Lighting:


Total Public Health and Welfare Services 378,000 408,205 379,348 28,857

Community Environment:

Public Service:




Total Public Service 381,932 387,900 378,432 9,468

Buildings and Grounds:




Total Buildings and Grounds 963,343 1,000,162 973,799 26,363

Total Community Environment 1,345,275 1,388,062 1,352,231 35,831

General Government:

City Council:


Materials and Supplies 3,000 3,000 2,802 198


Total City Council 139,329 143,750 135,398 8,352

City Administrator:




Total City Administrator 579,937 602,981 591,062 11,919

Human Resources:




Total Human Resources 293,962 272,138 256,773 15,365






DRAFT - 146 - 5/30/2019

(Continued)

Original


Variance with

Final Budget

Positive

(Negative)

Law Director:

Personal Services 218,153 219,653 218,981 672



Total Law Director 274,353 275,953 269,879 6,074

Finance:




Total Finance 839,907 867,629 835,054 32,575

Information Technology:




Total Information Technology 1,124,463 1,170,153 1,139,278 30,875

City Engineer:




Total City Engineer 1,585,573 1,675,633 1,628,610 47,023

Total General Government 4,837,524 5,008,237 4,856,054 152,183



Over (Under) Expenditures 4,331,026 5,038,389 6,472,431 1,434,042






DRAFT - 147 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)


Sale of Capital Assets 10,000 17,100 17,093 (7)

Transfers In 260,907 260,907 43,906 (217,001)

Transfers Out (4,575,079) (7,464,382) (6,779,474) 684,908

Advances Out (216,667) (216,667) (216,667) 0

Total Other Financing Sources (Uses) (4,520,839) (7,403,042) (6,935,142) 467,900

Net Change In Fund Balance (189,813) (2,364,653) (462,711) 1,901,942



Fund Balance at End of Year 7,790,878$ 5,616,038$ 7,517,980$ 1,901,942$




Major Funds – Debt Service Fund– Debt Service Fund


DRAFT - 148 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Charges for Services 101,500$ 101,500$ 101,500$ 0$

Special Assessments 2,500 2,500 0 (2,500)

Total Revenues 104,000 104,000 101,500 (2,500)

Expenditures:

Debt Service:

Principal Retirement 7,300,000 7,300,420 7,300,000 420

Interest and Fiscal Charges 709,588 709,588 707,588 2,000



Over (Under) Expenditures (7,905,588) (7,906,008) (7,906,088) (80)


General Obligation Notes Issued 4,935,000 4,941,344 4,941,344 0

Transfers In 2,970,588 2,970,588 2,964,745 (5,843)

Total Other Financing Sources (Uses) 7,905,588 7,911,932 7,906,089 (5,843)

Net Change In Fund Balance 0 5,924 1 (5,923)

Fund Balance at Beginning of Year 0 0 0 0

Fund Balance at End of Year 0$ 5,924$ 1$ (5,923)$




Major Funds – Debt Service Fund– Coleman’s Crossing TIF Fund


DRAFT - 149 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Payments in Lieu of Taxes 1,868,950$ 2,661,000$ 2,660,992$ (8)$

Total Revenues 1,868,950 2,661,000 2,660,992 (8)

Expenditures:

Community Environment:

Contractual Services 5,395,284 6,023,084 5,153,742 869,342

Debt Service:

Principal Retirement 425,000 425,000 425,000 0

Interest and Fiscal Charges 317,688 482,688 333,095 149,593

Total Expenditures 6,137,972 6,930,772 5,911,837 1,018,935


Over (Under) Expenditures (4,269,022) (4,269,772) (3,250,845) 1,018,927


General Obligation Notes Issued 4,174,000 4,174,000 2,489,293 (1,684,707)

Total Other Financing Sources (Uses) 4,174,000 4,174,000 2,489,293 (1,684,707)

Net Change In Fund Balance (95,022) (95,772) (761,552) (665,780)

Fund Balance at Beginning of Year 251,531 251,531 251,531 0


Fund Balance at End of Year 159,509$ 158,759$ (507,021)$ (665,780)$




Major Funds – Capital Projects Fund – Capital Improvement Projects (CIP) Fund


DRAFT - 150 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 0$ 0$ 6,850$ 6,850$

Investment Earnings 0 0 6,913 6,913

All Other Revenues 0 5,475 115 (5,360)

Total Revenues 0 5,475 13,878 8,403

Expenditures:

Capital Outlay:

Engineering 4,397,211 6,270,102 5,726,195 543,907



Over (Under) Expenditures (4,397,211) (6,264,627) (5,712,317) 552,310


General Obligation Notes Issued 3,667,268 3,667,268 0 (3,667,268)

Transfers In 718,490 1,742,515 3,518,187 1,775,672

Total Other Financing Sources (Uses) 4,385,758 5,409,783 3,518,187 (1,891,596)

Net Change In Fund Balance (11,453) (854,844) (2,194,130) (1,339,286)



Fund Balance at End of Year 2,213,372$ 1,369,981$ 30,695$ (1,339,286)$






DRAFT - 151 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Total Revenues 0$ 0$ 0$ 0$

Expenditures:



Over (Under) Expenditures 0 0 0 0


Fund Balance at End of Year 567$ 567$ 567$ 0$

VEYANCE INCENTIVE FUND






DRAFT - 152 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:

General Government:




Over (Under) Expenditures (36,501) (36,501) (31,563) 4,938


Transfers In 25,393 25,393 20,455 (4,938)

Total Other Financing Sources (Uses) 25,393 25,393 20,455 (4,938)

Net Change In Fund Balance (11,108) (11,108) (11,108) 0



UNIVENTURE FINANCIAL INCENTIVE FUND






DRAFT - 153 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:

General Government:






Transfers In 10,000 10,000 0 (10,000)

Total Other Financing Sources (Uses) 10,000 10,000 0 (10,000)

Net Change In Fund Balance (10,000) (20,000) (10,000) 10,000



Fund Balance at End of Year 10,120$ 120$ 10,120$ 10,000$

ENTERPRISE ZONE REVENUE FUND






DRAFT - 154 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 0$ 25,000$ 25,000$ 0$

Licenses and Permits 50,000 50,000 157,165 107,165

Total Revenues 50,000 75,000 182,165 107,165

Expenditures:

Transportation:



Contractual Services 10,000 35,000 34,014 986



Over (Under) Expenditures (39,150) (43,142) 71,318 114,460


Fund Balance at End of Year 77,195$ 73,203$ 187,663$ 114,460$

STREET TREE FUND






DRAFT - 155 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Charges for Services 137,000$ 137,000$ 174,611$ 37,611$

Total Revenues 137,000 137,000 174,611 37,611

Expenditures:

Leisure Time Activities:








Transfers In 65,525 65,525 0 (65,525)





Fund Balance at End of Year 15,486$ 15,429$ 592$ (14,837)$

POOL FUND






DRAFT - 156 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 0$ 0$ 500$ 500$

Charges for Services 95,000 114,600 89,038 (25,562)

Total Revenues 95,000 114,600 89,538 (25,062)

Expenditures:

General Government:








Transfers In 189,500 209,100 173,587 (35,513)






CITY EVENTS FUND






DRAFT - 157 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Property Taxes 117,900$ 117,900$ 113,464$ (4,436)$

Intergovernmental Revenues 12,969 12,969 12,691 (278)

Total Revenues 130,869 130,869 126,155 (4,714)

Expenditures:

Security of Persons and Property - Police:



Total Expenditures 130,487 130,487 130,099 388


Over (Under) Expenditures 382 382 (3,944) (4,326)


Fund Balance at End of Year 21,357$ 21,357$ 17,031$ (4,326)$

POLICE PENSION FUND






DRAFT - 158 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Property Taxes 117,900$ 117,900$ 113,464$ (4,436)$

Intergovernmental Revenues 12,969 12,969 12,691 (278)

Total Revenues 130,869 130,869 126,155 (4,714)

Expenditures:

Security of Persons and Property - Fire:



Total Expenditures 130,487 130,487 130,099 388





FIRE PENSION FUND






DRAFT - 159 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 3,000$ 3,000$ 792$ (2,208)$

Total Revenues 3,000 3,000 792 (2,208)

Expenditures:





Over (Under) Expenditures 0 0 (248) (248)


Fund Balance at End of Year 13,103$ 13,103$ 12,855$ (248)$

POLICE GRANT FUND






DRAFT - 160 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 4,000$ 4,000$ 0$ (4,000)$

Total Revenues 4,000 4,000 0 (4,000)

Expenditures:

Security of Persons and Property - Fire:

Contractual Services 4,000 4,000 0 4,000

Total Expenditures 4,000 4,000 0 4,000




Fund Balance at End of Year 11,788$ 11,788$ 11,788$ 0$

FIRE GRANT FUND






DRAFT - 161 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 836,821$ 836,821$ 856,545$ 19,724$

Licenses and Permits 0 0 75,451 75,451

Investment Earnings 6,000 6,000 2,205 (3,795)


Total Revenues 852,821 852,821 956,201 103,380

Expenditures:

Transportation:




Capital Outlay 0 7,509 7,509 0





Transfers In 550,000 550,000 102,500 (447,500)


Net Change In Fund Balance 44,783 (55,570) (273,768) (218,198)




STREET MAINTENANCE FUND


Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Non-GAAP Budgetary Basis) Nonmajor Special Revenue Funds For the Year Ended December 31, 2018

DRAFT - 162 - 6/17/2019

Original Budget Final Budget Actual

Variance with Final Budget

Positive (Negative)

Revenues:

All Other Revenues 500$ 500$ 83,092$ 82,592$

Total Revenues 500 500 83,092 82,592

Expenditures:



Capital Outlay 22,000 190,443 169,393 21,050





Transfers In 0 75,078 0 (75,078)

Total Other Financing Sources (Uses) 0 75,078 0 (75,078)

Net Change In Fund Balance (22,500) (116,501) (87,512) 28,989




LAW ENFORCEMENT TRUST FUND






DRAFT - 163 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Fines and Forfeitures 12,000$ 12,000$ 3,455$ (8,545)$

Total Revenues 12,000 12,000 3,455 (8,545)

Expenditures:


Materials and Supplies 3,000 3,000 0 3,000



Over (Under) Expenditures 9,000 9,000 3,455 (5,545)



MANDATORY DRUG FINE FUND






DRAFT - 164 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Fines and Forfeitures 1,500$ 1,500$ 1,067$ (433)$

Total Revenues 1,500 1,500 1,067 (433)

Expenditures:


Contractual Services 750 750 100 650






DUI ALCOHOL EDUCATION AND ENFORCEMENT FUND






DRAFT - 165 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:






DUI INDIGENT DRIVERS TREATMENT FUND






DRAFT - 166 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 67,541$ 67,541$ 74,124$ 6,583$

Investment Earnings 1,000 1,000 717 (283)

All Other Revenues 15,000 15,000 12,323 (2,677)

Total Revenues 83,541 83,541 87,164 3,623

Expenditures:

Transportation:







Transfers In 45,000 45,000 0 (45,000)






STATE HIGHWAY FUND






DRAFT - 167 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Fines and Forfeitures 25,000$ 25,000$ 26,077$ 1,077$

Total Revenues 25,000 25,000 26,077 1,077

Expenditures:

Security of Persons and Property - Other:




Over (Under) Expenditures 0 0 26,077 26,077



COURT COMPUTER AND RESEARCH FUND






DRAFT - 168 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Total Revenues 25,000 25,000 26,193 1,193

Expenditures:


Contractual Services 20,000 20,062 20,063 (1)

Total Expenditures 20,000 20,062 20,063 (1)


Over (Under) Expenditures 5,000 4,938 6,130 1,192




MUNICIPAL COURT COMPUTER FUND






DRAFT - 169 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Charges for Services 3,000$ 3,000$ 3,264$ 264$

Fines and Forfeitures 55,000 55,000 59,678 4,678

Total Revenues 58,000 58,000 62,942 4,942

Expenditures:







Prior Year Encumbrances 371 371 371 0


MUNICIPAL COURT SPECIAL PROJECTS FUND






DRAFT - 170 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Total Revenues 12,000 12,000 13,860 1,860

Expenditures:


Personal Services 11,815 11,815 0 11,815







COURT PROBATION FEE FUND






DRAFT - 171 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:






ELJER PARK FUND






DRAFT - 172 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Licenses and Permits 3,000$ 3,000$ 3,723$ 723$

Total Revenues 3,000 3,000 3,723 723

Expenditures:



Over (Under) Expenditures 3,000 3,000 3,723 723



CEMETERY MAINTENANCE FUND






DRAFT - 173 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Investment Earnings 150$ 150$ 498$ 348$

Total Revenues 150 150 498 348

Expenditures:

Security of Persons and Property:

Materials and Supplies 300 300 0 300



Over (Under) Expenditures (150) (150) 498 648



CEMETERY ENDOWMENT FUND






DRAFT - 174 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Total Revenues 14,000 14,000 19,731 5,731

Expenditures:








MUNICIPAL COURT LOCAL INTERLOCK FUND






DRAFT - 175 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Total Revenues 16,000 16,000 20,640 4,640

Expenditures:








MUNICIPAL COURT STATE INTERLOCK FUND






DRAFT - 176 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 0$ 0$ 5,283$ 5,283$

Total Revenues 0 0 5,283 5,283

Expenditures:



Over (Under) Expenditures 0 0 5,283 5,283



CHIP GRANT FUND






DRAFT - 177 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Fines and Forfeitures 1,500$ 1,500$ 0$ (1,500)$

Total Revenues 1,500 1,500 0 (1,500)

Expenditures:


Materials and Supplies 1,976 1,976 0 1,976



Over (Under) Expenditures (476) (476) 0 476


Fund Balance at End of Year 772$ 772$ 1,248$ 476$

FEDERAL LAW ENFORCEMENT FUND






DRAFT - 178 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Licenses and Permits 20,000$ 20,000$ 141,273$ 121,273$

Total Revenues 20,000 20,000 141,273 121,273

Expenditures:



Over (Under) Expenditures 20,000 20,000 141,273 121,273



PARKLAND DEVELOPMENT FUND






DRAFT - 179 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:






ODNR GRANT FUND






DRAFT - 180 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:






OPWC GRANT FUND






DRAFT - 181 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:






CDBG FORMULA GRANT FUND






DRAFT - 182 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:





Transfers Out (43,906) (43,906) (43,906) 0

Total Other Financing Sources (Uses) (43,906) (43,906) (43,906) 0

Net Change In Fund Balance (43,906) (43,906) (43,906) 0



PEDESTRIAN BRIDGE FUND






DRAFT - 183 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 0$ 280,118$ 280,118$ 0$

Total Revenues 0 280,118 280,118 0

Expenditures:

Capital Outlay:

Street Maintenance 0 404,827 404,827 0

Total Expenditures 0 404,827 404,827 0


Over (Under) Expenditures 0 (124,709) (124,709) 0



Fund Balance at End of Year 124,709$ 0$ 0$ 0$

SAFE ROUTES TO SCHOOL GRANT FUND






DRAFT - 184 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:






TOWN RUN RESTORATION FUND






DRAFT - 185 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:


Expenditures:






CITY DEVELOPMENT GRANT FUND






DRAFT - 186 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 1,083,333$ 1,083,333$ 561,642$ (521,691)$

Total Revenues 1,083,333 1,083,333 561,642 (521,691)

Expenditures:

Capital Outlay:

Street Maintenance 650,000 650,000 500,000 150,000



Over (Under) Expenditures 433,333 433,333 61,642 (371,691)


Transfers Out (650,000) (650,000) 0 650,000

Advances In 216,667 216,667 216,667 0

Total Other Financing Sources (Uses) (433,333) (433,333) 216,667 650,000

Net Change In Fund Balance 0 0 278,309 278,309


Fund Balance at End of Year 0$ 0$ 278,309$ 278,309$

NORTHWEST 33 GRANT FUND






DRAFT - 187 - 5/30/2019

Original


Variance with

Final Budget

Positive

(Negative)

Revenues:

Intergovernmental Revenues 2,064,963$ 2,131,963$ 1,304,181$ (827,782)$

Total Revenues 2,064,963 2,131,963 1,304,181 (827,782)

Expenditures:

Capital Outlay:

Street Maintenance 2,064,963 2,131,963 2,131,202 761

Total Expenditures 2,064,963 2,131,963 2,131,202 761




Fund Balance at End of Year 0$ 0$ (827,021)$ (827,021)$

STATE ROUTE 31 FUND


DRAFT - 188 - 5/30/2019

Fiduciary Funds

Fiduciary fund types are used to account for assets held by the City in a trustee capacity or as

an agent for individuals, private organizations, other governmental units and/or other funds.

Agency Funds

Municipal Court Fund To account for funds that flow through the municipal court office.

Law Library Fund To account for the share of fines collected by the Municipal Court to provide a County

Law Library and resources for use by members of the County Bar Association.

Unclaimed Monies Fund To account for monies that are due to others who cannot be immediately located.

NW 33 COG Fund To account for monies that are used for any financial activities of the NW 33 Council of

Governments which, are required to be accounted for by the City of Marysville.

Union County Port Authority Fund To account for monies that are due to the Port Authority.


DRAFT - 189 - 5/30/2019

Combining Statement of Changes in Assets and Liabilities

Agency Funds


Balance Balance


2017 Additions Deductions 2018

Municipal Court

Assets:

Cash and Cash Equivalents $191,432 $2,103,484 ($2,160,382) $134,534

Total Assets $191,432 $2,103,484 ($2,160,382) $134,534

Liabilities:

Due to Others $191,432 $2,103,484 ($2,160,382) $134,534

Total Liabilities $191,432 $2,103,484 ($2,160,382) $134,534

Law Library

Assets:

Cash and Cash Equivalents $12,577 $63,949 ($63,949) $12,577

Total Assets $12,577 $63,949 ($63,949) $12,577

Liabilities:

Due to Others $12,577 $63,949 ($63,949) $12,577

Total Liabilities $12,577 $63,949 ($63,949) $12,577

Unclaimed Monies

Assets:

Cash and Cash Equivalents $51,300 $13,280 ($315) $64,265

Total Assets $51,300 $13,280 ($315) $64,265

Liabilities:

Due to Others $51,300 $13,280 ($315) $64,265

Total Liabilities $51,300 $13,280 ($315) $64,265

Northwest 33 COG

Assets:

Cash and Cash Equivalents $0 $777,307 ($179,068) $598,239

Total Assets $0 $777,307 ($179,068) $598,239

Liabilities:

Due to Others $0 $777,307 ($179,068) $598,239

Total Liabilities $0 $777,307 ($179,068) $598,239

Union County Port Authority

Assets:

Cash and Cash Equivalents $11,922 $0 $0 $11,922

Total Assets $11,922 $0 $0 $11,922

Liabilities:

Due to Others $11,922 $0 $0 $11,922

Total Liabilities $11,922 $0 $0 $11,922

Totals - Agency Funds

Assets:

Cash and Cash Equivalents $267,231 $2,958,020 ($2,403,714) $821,537

Total Assets $267,231 $2,958,020 ($2,403,714) $821,537

Liabilities:

Due to Others $267,231 $2,958,020 ($2,403,714) $821,537

Total Liabilities $267,231 $2,958,020 ($2,403,714) $821,537


DRAFT - 190 - 5/30/2019

STATISTICAL SECTION



DRAFT - S 1 - 5/8/2018

STATISTICAL TABLES

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

Financial Trends S 2 – S 13

These schedules contain trend information to help the reader understand how

the City’s financial position has changed over time.

Revenue Capacity S 14 – S 17

These schedules contain information to help the reader understand and assess

the factors affecting the City’s ability to generate its most significant local

revenue source, the income tax.

Debt Capacity S 18 – S 27

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.

Economic and Demographic Information S 28 – S 33

These schedules offer economic and demographic indicators to help the reader

understand the environment within which the City’s financial activities take

place and to provide information that facilitates comparisons of financial

information over time and among governments.

Operating Information S 34 – S 37

These schedules contain service and infrastructure data to help the reader

understand how the information in the City’s financial report relates to the

services the City provides and the activities it performs.

Sources Note:

Unless otherwise noted, the information in these schedules is derived from the

comprehensive annual financial reports for the relevant year.

2009 2010 2011 2012


Net Investment in Capital Assets $22,141,194 $21,674,744 $22,891,629 $40,546,400

Restricted 3,328,917 4,110,446 4,161,559 3,180,891

Unrestricted (Deficit) 4,529,769 8,555,721 10,362,675 (2,212,537)Total Governmental Activities Net Position $29,999,880 $34,340,911 $37,415,863 $41,514,754

Business-type Activities:


Restricted 6,781,143 4,537,001 5,070,401 4,830,844

Unrestricted 26,650,472 30,609,300 28,690,074 18,497,461Total Business-type Activities Net Position $56,369,523 $56,284,993 $54,133,137 $51,975,761

Primary Government:


Restricted 10,110,060 8,647,447 9,231,960 8,011,735

Unrestricted 31,180,241 39,165,021 39,052,749 16,284,924Total Primary Government Net Position $86,369,403 $90,625,904 $91,549,000 $93,490,515

Source: Finance Director's Office


Net Position by Component

Last Ten Years

(accrual basis of accounting)

- S 2 -

2013 2014 2015 2016 2017 2018

$30,698,813 $33,084,267 $35,308,591 $38,722,222 $39,732,395 $43,776,985

3,409,352 4,190,442 4,544,708 4,328,948 4,718,106 4,091,422

9,792,995 10,932,563 (2,335,330) (5,058,505) (6,931,927) (24,636,178)$43,901,160 $48,207,272 $37,517,969 $37,992,665 $37,518,574 $23,232,229

$26,595,566 $36,566,689 $35,897,563 $33,175,505 $36,233,245 $34,996,804

7,300,290 7,379,220 7,907,006 4,983,330 4,162,899 3,901,174

21,203,974 26,658,581 25,718,878 38,372,241 42,714,278 51,644,902$55,099,830 $70,604,490 $69,523,447 $76,531,076 $83,110,422 $90,542,880

$57,294,379 $69,650,956 $71,206,154 $71,897,727 $75,965,640 $78,773,789

10,709,642 11,569,662 12,451,714 9,312,278 8,881,005 7,992,596

30,996,969 37,591,144 23,383,548 33,313,736 35,782,351 27,008,724$99,000,990 $118,811,762 $107,041,416 $114,523,741 $120,628,996 $113,775,109


- S 3 -

2009 2010 2011

Expenses


Security of Persons and Property $8,231,839 $8,065,669 $8,357,902

Public Health Services 533,704 356,768 352,838

Leisure Time Activities 357,477 318,027 306,972

Community Environment 1,592,190 1,785,546 2,341,633

Transportation 2,937,757 2,826,219 3,516,857

General Government 2,890,567 3,083,726 3,444,437

Interest and Fiscal Charges 882,409 572,550 803,104

Total Governmental Activities Expenses 17,425,943 17,008,505 19,123,743


Sewer 5,109,903 11,703,017 14,315,809

Water 4,636,236 5,499,245 5,457,933

Stormwater 464,076 362,964 434,154

Sanitation 1,244,236 1,271,205 1,333,054

Total Business-type Activities Expenses 11,454,451 18,836,431 21,540,950

Total Primary Government Expenses $28,880,394 $35,844,936 $40,664,693

Program Revenues


Charges for Services

Security of Persons and Property $1,526,755 $1,539,922 $1,693,413



Transportation 79,235 142,033 145,493

General Government 1,991 279,985 97,056

Operating Grants and Contributions 1,010,400 1,871,206 1,658,421

Capital Grants and Contributions 1,427,027 1,766,014 493,053

Total Governmental Activities Program Revenues 4,227,451 6,366,911 4,933,031


Last Ten Years

Changes in Net Position


- S 4 -

2012 2013 2014 2015 2016 2017 2018

$10,066,129 $8,915,295 $10,901,293 $11,103,602 $13,511,380 $13,706,093 $14,030,632

345,051 325,370 328,238 298,204 331,180 431,163 334,933

322,349 226,792 245,142 247,763 407,116 446,269 415,980

1,439,869 2,096,032 2,168,919 1,698,722 1,936,951 3,011,885 5,869,580

2,477,865 3,698,119 4,392,905 4,145,044 5,216,711 3,874,024 3,456,475

3,339,059 4,052,416 2,510,588 3,958,514 4,895,555 6,478,340 5,516,227

1,286,722 1,145,930 1,027,765 1,050,086 1,040,563 1,022,991 1,019,344

19,277,044 20,459,954 21,574,850 22,501,935 27,339,456 28,970,765 30,643,171

13,872,985 12,049,523 14,540,972 16,798,276 15,005,676 15,359,155 16,127,090

6,146,165 5,475,924 5,554,327 5,826,144 6,071,788 6,169,630 6,080,070

524,399 614,393 546,592 560,112 752,302 810,021 803,617

1,436,775 1,481,877 1,420,437 1,402,778 1,470,201 1,579,169 1,811,190

21,980,324 19,621,717 22,062,328 24,587,310 23,299,967 23,917,975 24,821,967

$41,257,368 $40,081,671 $43,637,178 $47,089,245 $50,639,423 $52,888,740 $55,465,138

$1,793,546 $1,544,874 $2,005,468 $2,412,513 $2,140,911 $1,970,210 $2,401,628

52,503 50,830 44,005 80,804 59,773 80,133 57,552

890,687 640,659 1,065,397 936,102 1,066,751 1,273,458 1,386,989

44,951 202,097 15,560 48,765 12,407 39,260 34,513

95,067 150,535 279,906 476,090 402,699 204,742 219,336

984,900 1,360,249 910,770 913,154 926,520 894,694 1,029,207

1,105,468 614,619 2,301,339 307,759 934,011 428,165 1,671,702

4,967,122 4,563,863 6,622,445 5,175,187 5,543,072 4,890,662 6,800,927

(Continued)


- S 5 -

2009 2010 2011


Charges for Services

Sewer 7,458,511 7,762,151 8,648,140

Water 6,816,999 7,103,702 7,161,890

Stormwater 503,772 560,719 544,835

Sanitation 1,391,143 1,365,302 1,360,247

Operating Grants and Contributions 6,881 0 0

Capital Grants and Contributions 1,386,178 905,366 414,314

Total Business-type Activities Program Revenues 17,563,484 17,697,240 18,129,426

Total Primary Government Program Revenues 21,790,935 24,064,151 23,062,457

Net (Expense)/Revenue

Governmental Activities (13,198,492) (10,641,594) (14,190,712)

Business-type Activities 6,109,033 (1,139,191) (3,411,524)

Total Primary Government Net (Expense)/Revenue ($7,089,459) ($11,780,785) ($17,602,236)

General Revenues and Other Changes in Net Position


Property Taxes $1,874,723 $1,828,092 $1,661,203

Municipal Income Taxes 8,347,026 10,878,400 12,619,829

Other Local Taxes 120,864 109,895 349,027

Payments in Lieu of Taxes 1,022,086 1,026,468 1,336,532

Grants and Entitlements not

Restricted to Specific Programs 724,478 846,810 927,470

Gain on Sale of Capital Assets 0 0 0

Investment Earnings 142,515 135,196 55,002

Miscellaneous 577,549 157,764 35,623

Premium on Issued Debt 0 0 101,978

Transfers 132,992 0 179,000

Total Governmental Activities 12,942,233 14,982,625 17,265,664


Payments in Lieu of Taxes 982,141 1,051,955 1,363,801

Gain (Loss) on Sale of Capital Assets 0 0 0

Investment Earnings 0 2,706 74,867

Miscellaneous 0 0 0

Transfers (132,992) 0 (179,000)

Total Business-type Activities 849,149 1,054,661 1,259,668

Total Primary Government $13,791,382 $16,037,286 $18,525,332

Change in Net Position

Governmental Activities ($256,259) $4,341,031 $3,074,952

Business-type Activities 6,958,182 (84,530) (2,151,856)Total Primary Government Change in Net Position $6,701,923 $4,256,501 $923,096



Last Ten Years

Changes in Net Position


- S 6 -

2012 2013 2014 2015 2016 2017 2018

9,555,924 11,284,134 12,100,783 11,627,312 14,199,970 14,346,619 15,405,998

7,154,859 7,959,229 8,487,914 8,101,146 10,291,048 10,179,773 10,777,054

589,363 622,277 622,692 903,869 747,639 937,476 987,240

1,384,509 1,398,336 1,398,107 1,363,086 1,684,933 1,354,501 1,581,766

0 0 0 0 0 0 0

0 104,761 12,462,705 642,000 0 21,677 0

18,684,655 21,368,737 35,072,201 22,637,413 26,923,590 26,840,046 28,752,058

23,651,777 25,932,600 41,694,646 27,812,600 32,466,662 31,730,708 35,552,985

(14,309,922) (15,896,091) (14,952,405) (17,326,748) (21,796,384) (24,080,103) (23,842,244)

(3,295,669) 1,747,020 13,009,873 (1,949,897) 3,623,623 2,922,071 3,930,091

($17,605,591) ($14,149,071) ($1,942,532) ($19,276,645) ($18,172,761) ($21,158,032) ($19,912,153)

$1,582,703 $1,530,536 $1,495,604 $1,529,783 $1,551,468 $1,609,037 $1,766,279

14,043,831 14,262,601 14,744,447 16,123,925 17,664,505 18,830,805 18,386,826

357,269 401,347 405,282 384,363 456,741 384,028 391,671

1,486,927 1,362,698 1,514,353 1,687,738 1,736,882 1,832,342 2,660,992

691,055 514,798 898,664 424,023 244,263 115,131 874,366

1,670 14,354 7,119 0 0 0 0

82,533 12,981 90,539 0 29,111 140,947 300,294

162,825 102,075 102,509 132,256 588,110 320,658 492,386

0 81,107 0 316,489 0 0 0

0 0 0 0 0 373,064 0

18,408,813 18,282,497 19,258,517 20,598,577 22,271,080 23,606,012 24,872,814

1,008,786 1,409,981 2,322,532 2,356,351 3,272,352 3,721,459 4,620,956

17,778 4,512 0 0 0 0 0

111,729 (37,444) 172,255 139,876 111,654 308,880 601,846

0 0 0 0 0 0 0

0 0 0 0 0 (373,064) 0

1,138,293 1,377,049 2,494,787 2,496,227 3,384,006 3,657,275 5,222,802

$19,547,106 $19,659,546 $21,753,304 $23,094,804 $25,655,086 $27,263,287 $30,095,616

$4,098,891 $2,386,406 $4,306,112 $3,271,829 $474,696 ($474,091) $1,030,570

(2,157,376) 3,124,069 15,504,660 546,330 7,007,629 6,579,346 9,152,893$1,941,515 $5,510,475 $19,810,772 $3,818,159 $7,482,325 $6,105,255 $10,183,463


- S 7 -

2009 2010 2011 2012

General Fund

Nonspendable $0 $0 $96,470 $106,725

Committed 0 0 8,334 38,335

Assigned 0 0 217,818 377,780

Unassigned 0 0 9,342,856 6,711,664

Reserved 172,544 436,883 0 0

Unreserved 4,364,501 6,289,373 0 0

Total General Fund 4,537,045 6,726,256 9,665,478 7,234,504

All Other Governmental Funds

Nonspendable $0 $0 $11,821 $19,173

Restricted 0 0 16,268,244 7,233,448

Committed 0 0 203,652 288,693

Unassigned 0 0 (11,779,280) (11,266,288)

Reserved 830,005 1,161,754 0 0

Unreserved, Undesignated,

Reported in:

Special Revenue Funds 1,699,856 3,024,014 0 0

Debt Service Funds (44,723) (12,516,434) 0 0

Capital Projects Funds 123,586 (344,148) 0 0

Total All Other Governmental Funds 2,608,724 (8,674,814) 4,704,437 (3,724,974)

Total Governmental Funds $7,145,769 ($1,948,558) $14,369,915 $3,509,530


Note: The City implemented GASB 54 in 2011 which established new fund balance classifications

for governmental funds.


Fund Balances, Governmental Funds

Last Ten Years

(modified accrual basis of accounting)

- S 8 -

2013 2014 2015 2016 2017 2018

$93,006 $94,983 $111,390 $114,049 $133,999 $249,327

43,795 43,795 1,138,206 1,111,082 1,084,726 2,071,438

1,379,742 996,642 1,778,155 382,065 1,387,134 46,723

7,021,072 8,982,080 7,979,676 8,258,906 6,821,660 7,065,437

0 0 0 0 0 0

0 0 0 0 0 0

8,537,615 10,117,500 11,007,427 9,866,102 9,427,519 9,432,925

$7,697 $19,836 $13,110 $22,824 $14,465 $46,292

2,570,975 3,081,804 3,430,941 3,209,563 2,838,266 2,980,135

257,563 352,903 272,139 299,329 348,217 490,745

(15,876,619) (4,387,508) (2,958,447) (4,561,332) (2,560,575) (2,543,261)

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

(13,040,384) (932,965) 757,743 (1,029,616) 640,373 973,911

($4,502,769) $9,184,535 $11,765,170 $8,836,486 $10,067,892 $10,406,836


- S 9 -

2009 2010 2011

Revenues:

Taxes $10,424,239 $12,664,636 $16,118,009

Payments in Lieu of Taxes 956,394 1,067,337 1,336,532

Intergovernmental Revenues 3,163,702 3,772,289 2,379,237

Charges for Services 1,115,969 1,580,001 1,616,110

Fees, Licenses and Permits 362,866 327,127 162,897

Investment Earnings 142,515 135,196 55,002

Contributions and Donations 750 706 7,300

Special Assessments 0 21,510 20,758

Fines and Forfeitures 632,938 720,749 725,907

All Other Revenue 176,464 143,017 62,420

Total Revenue 16,975,837 20,432,568 22,484,172

Expenditures:

Current:

Security of Persons and Property 7,783,003 7,859,772 8,648,354



Community Environment 1,560,124 2,895,717 2,321,900

Transportation 980,343 1,188,364 2,452,026

General Government 2,555,439 2,728,701 3,047,044

Capital Outlay 2,306,626 45,986 2,768,241

Debt Service:

Principal Retirement 13,808,875 13,480,000 520,000

Interest and Fiscal Charges 888,531 742,369 610,574

Debt Issuance Costs 0 0 306,352



Over Expenditures (13,694,975) (9,094,376) 1,234,777


Last Ten Years

Changes in Fund Balances, Governmental Funds


- S 10 -

2012 2013 2014 2015 2016 2017 2018

$15,914,095 $16,347,764 $17,044,717 $18,047,445 $19,643,623 $20,568,192 $20,864,173

1,486,927 1,362,698 1,514,353 1,687,738 1,736,882 1,832,342 2,660,992

1,936,554 2,390,506 3,365,498 1,584,890 2,153,582 1,696,775 3,518,333

1,862,124 1,732,913 2,433,662 2,506,925 2,692,479 2,644,448 2,877,223

139,413 228,054 338,642 296,529 267,585 437,932 532,549

82,533 12,981 90,539 132,256 29,111 140,947 300,294

222 36,187 0 0 0 0 1

21,731 21,290 20,464 2,612 1,402 0 0

788,317 800,480 749,824 939,624 960,539 836,630 817,493

42,615 247,064 86,750 393,368 260,155 172,206 151,247

22,274,531 23,179,937 25,644,449 25,591,387 27,745,358 28,329,472 31,722,305

9,845,275 9,612,665 10,115,400 11,346,544 11,795,183 11,389,399 11,855,722

343,835 318,303 322,132 327,318 335,411 413,977 361,226

246,112 152,254 181,693 150,239 207,149 214,425 207,967

1,426,941 2,148,292 1,921,614 1,605,517 1,670,161 2,519,990 6,006,107

1,904,039 1,487,017 2,150,804 1,973,221 2,873,540 1,307,813 1,326,628

2,939,961 3,583,321 3,683,749 3,906,471 4,242,244 5,204,180 4,993,689

14,274,253 11,686,978 3,835,006 945,075 7,144,017 5,267,090 6,059,366

1,030,000 1,125,000 1,155,000 1,670,000 1,720,000 1,795,000 3,840,000

1,126,170 1,173,867 1,017,578 1,104,134 1,078,508 1,028,968 1,039,042

0 0 0 0 0 0 0

33,136,586 31,287,697 24,382,976 23,028,519 31,066,213 29,140,842 35,689,747

(10,862,055) (8,107,760) 1,261,473 2,562,868 (3,320,855) (811,370) (3,967,442)

(Continued)


- S 11 -

2009 2010 2011


Last Ten Years

Changes in Fund Balances, Governmental Funds



Bond Anticipation Notes Issued 12,980,000 0 0

Premium on Bond Anticipation Notes Issued 80,396 0 0

Sale of Capital Assets 34,177 49 1,833

Long-Term Note Issued 0 0 0

Long-Term Loan Issued 0 0 0

Inception of Capital Lease 0 0 189,941

General Obligation Bonds Issued 0 0 14,585,000

Premium on Debt Issued 0 0 127,922

Payment to Escrow Agent 0 0 0

Transfers In 2,447,091 1,851,529 3,469,538

Transfers Out (2,314,099) (1,851,529) (3,290,538)

Total Other Financing Sources (Uses) 13,227,565 49 15,083,696

Net Change in Fund Balance ($467,410) ($9,094,327) $16,318,473

Debt Service as a Percentage

of Noncapital Expenditures 52.30% 50.86% 6.68%


- S 12 -

2012 2013 2014 2015 2016 2017 2018


0 0 0 0 0 0 0

0 0 0 0 0 0 0

1,670 14,354 7,119 17,767 13,462 42,776 17,093

0 0 0 0 0 2,000,000 1,800,000

0 0 1,200,000 0 0 0 0

0 0 312,632 0 378,709 0 0

0 0 10,730,000 0 0 0 2,489,293

0 81,107 176,080 0 0 0 0

0 0 0 0 0 0 0

7,817,696 4,088,445 4,554,432 4,991,350 8,076,436 7,050,684 6,802,925

(7,817,696) (4,088,445) (4,554,432) (4,991,350) (8,076,436) (7,050,684) (6,802,925)

1,670 95,461 12,425,831 17,767 392,171 2,042,776 4,306,386

($10,860,385) ($8,012,299) $13,687,304 $2,580,635 ($2,928,684) $1,231,406 $338,944

12.18% 12.59% 11.76% 13.99% 12.00% 11.40% 18.06%

- S 13 -

Tax year 2009 2010 2011 2012

Income Tax Rate* 1.00% 1.50% 1.50% 1.50%

Estimated Personal Income

(in thousands) (1)(a) $633,765 $751,306 $711,857 $795,426

Total Tax Collected $8,385,684 $9,631,406 $13,085,760 $13,049,810

Income Tax Receipts

Withholding 6,489,432 7,689,978 10,024,236 10,197,784

Percentage 77.39% 79.85% 76.61% 78.15%

Business 214,131 420,165 848,488 470,477

Percentage 2.55% 4.36% 6.48% 3.60%

Individuals 1,682,121 1,521,264 2,213,036 2,381,549

Percentage 20.06% 15.79% 16.91% 18.25%

Source: City Income Tax Department(1) US Department of Commerce, Bureau of Economic Analysis

(a) Total Personal Income is a calculation, 2012 is an estimate

* Voters approved an increase in the income tax rate from 1.0% to 1.5% effective July 1, 2010.


Income Tax Revenues by Source, Governmental Funds

Last Ten Years

(cash basis of accounting)

- S 14 -

2013 2014 2015 2016 2017 2018

1.50% 1.50% 1.50% 1.50% 1.50% 1.50%

$861,346 $909,743 $970,017 $1,062,350 $1,074,486 $1,226,128

$14,094,213 $15,042,306 $15,951,598 $17,456,251 $18,801,562 $19,037,167

10,275,715 11,320,348 11,981,323 12,707,971 13,414,776 14,230,168

72.91% 75.26% 75.11% 72.80% 71.35% 74.75%

1,066,540 835,577 964,898 1,205,382 2,058,714 1,511,318

7.56% 5.54% 6.05% 6.90% 10.95% 7.94%

2,751,958 2,886,381 3,005,377 3,542,898 3,328,072 3,295,682

19.53% 19.19% 18.84% 20.30% 17.70% 17.31%


- S 15 -


- S 16 -


Income Tax Collections

Current Year and Nine Years Ago

Number Percent of

Range of Withholding of Filers Total

$0 - $24,999 2,293 97.78%

25,000 - 49,999 26 1.11%

50,000 - 74,999 6 0.26%

75,000 - 99,999 6 0.26%

Over 100,000 14 0.59%

Total 2,345 100.00%

Income Tax Year 2009

Number Percent of

Income Level of Filers Total

$0 - $24,999 1,607 98.71%

25,000 - 49,999 8 0.49%

50,000 - 74,999 2 0.12%

75,000 - 99,999 1 0.06%

Over 100,000 10 0.62%

Total 1,628 100.00%

Local Taxes Paid by Residents

Taxes Paid to Marysville

Taxes Credited to Other Municipalities

Source: City Income Tax DepartmentNote: Due to confidentiality issues, the names of the 10 largest revenue payers are not available.

The categories presented are intended to provide alternative information regarding the sources

of the City's revenue.

Income Tax Year 2018

- S 17 -

2009 2010 2011 2012

Governmental Activities (1)

General Obligation Bonds $7,054,197 $6,532,491 $20,601,729 $19,548,658

General Obligation Bonds (TIF supported) 0 0 0 0

Long-Term Loan 0 0 0 0

Capital Leases 287,113 237,184 343,288 262,348

Notes Payable 0 0 2,300,000 5,800,000

Business-type Activities (1)

General Obligation Bonds $1,523,262 $1,102,447 $666,632 $340,816

Mortgage Revenue Bonds 149,860,516 148,602,711 147,022,034 137,398,675

Notes Payable 28,240,000 28,215,000 26,504,650 26,550,000

Ohio Public Works Commission Loan 41,639 625,075 602,364 564,869

Total Primary Government $187,006,727 $185,314,908 $198,040,697 $190,465,366

Population (2)

City of Marysville 18,394 22,094 19,856 22,187

Outstanding Debt Per Capita $10,167 $8,388 $9,974 $8,585

Income (3)

Personal (in thousands) 633,765 751,306 711,857 795,426

Percentage of Personal Income 29.51% 24.67% 27.82% 23.95%

Sources:

(1) Finance Director's Office

(2) Mid Ohio Regional Planning Commission and US Bureau of Census, Population Division

(3) US Department of Commerce, Bureau of Economic Analysis

(a) Per Capita Income is only available by County, Total Personal Income is a calculation, 2013 is an estimate


Ratio of Outstanding Debt By Type

Last Ten Years

- S 18 -

2013 2014 2015 2016 2017 2018

$18,400,587 $17,222,516 $16,009,445 $14,766,374 $13,473,303 $12,145,232

0 10,906,080 10,507,276 10,098,472 9,674,668 11,730,157

0 1,200,000 1,110,000 1,010,000 900,000 790,000

178,239 403,465 252,401 439,779 254,738 64,864

5,150,000 4,400,000 3,150,000 4,735,000 5,885,000 4,935,000

$0 $0 $10,270,000 $10,070,000 $9,865,000 $9,655,000

135,889,915 134,311,155 150,737,015 148,730,821 145,383,599 142,111,377

25,975,000 25,945,000 0 0 0 0

527,374 489,879 443,523 413,955 384,387 354,819

$186,121,115 $194,878,095 $192,479,660 $190,264,401 $185,820,695 $181,786,449

22,306 22,534 22,765 23,023 23,286 23,286

$8,344 $8,648 $8,455 $8,264 $7,980 $7,807

861,346 909,743 970,017 1,062,350 1,074,486 1,226,128

21.61% 21.42% 19.84% 17.91% 17.29% 14.83%


- S 19 -

Year 2009 2010 2011 2012

Population (1) 18,394 22,094 19,856 22,187

Assessed Value (2) $382,583,330 $384,565,260 $387,412,760 $383,333,000

Income (2)(a)

Personal (in thousands) $633,765 $751,306 $711,857 $795,426

General Bonded Debt

General Obligation Bonds $8,577,459 $7,634,938 $21,268,361 $19,889,474

Resources Available to Pay Principal (3) $0 $0 $93,536 $25,952

Net General Bonded Debt $8,577,459 $7,634,938 $21,174,825 $19,863,522

Ratio of Net Bonded Debt

to Personal Income 1.35% 1.02% 2.97% 2.50%

Ratio of Net Bonded Debt

to Assessed Value 2.24% 1.99% 5.47% 5.18%

Net Bonded Debt per Capita $466.32 $345.57 $1,066.42 $895.28

Source:

(1) Mid Ohio Regional Planning Commission and US Bureau of Census, Population Division(2) US Department of Commerce, Bureau of Economic Analysis

(a) Total Personal Income is calculated, 2013 is an estimate

(3) Includes only Debt Service funds available for general obligation bonded debt supported by property taxes.


Ratios of General Bonded Debt Outstanding

Last Ten Years

- S 20 -

2013 2014 2015 2016 2017 2018

22,306 22,534 22,765 23,023 23,286 23,286

$366,023,040 $372,156,750 $374,110,230 $415,609,670 $418,841,690 $425,105,820

$861,346 $909,743 $970,017 $1,062,350 $1,074,486 $1,226,128

$18,400,587 $29,328,596 $37,896,721 $35,944,846 $33,912,971 $34,320,389

$13,710 $185,340 $11,328 $0 $0 $0

$18,386,877 $29,143,256 $37,885,393 $35,944,846 $33,912,971 $34,320,389

2.13% 3.20% 3.91% 3.38% 3.16% 2.80%

5.02% 7.83% 10.13% 8.65% 8.10% 8.07%

$824.30 $1,293.30 $1,664.19 $1,561.26 $1,456.37 $1,473.86


- S 21 -


- S 22 -


Computation of Direct and Overlapping

Debt Attributable to Governmental Activities

December 31, 2018

Percentage Amount

Applicable to Applicable to

Net Debt the City of the City of

Jurisdiction Outstanding Marysville Marysville

Direct:

City of Marysville $1,900,000 100.00% $1,900,000

Overlapping:

Union County 44,555,000 23.68% 10,550,624

Marysville Exempted Village School District 62,032,339 50.40% 31,264,299

Fairbanks Local School District 8,666,413 2.43% 210,594

Subtotal 42,025,517

Total $43,925,517

Source: Union County Auditor

Percentages determined by dividing each overlapping subdivisions' assessed valuation within the City

by the subdivisions' total assessed valuation.

- S 23 -

Tax Year 2009 2010 2011 2012

Total Debt

Net Assessed Valuation $382,583,330 $384,565,260 $387,412,760 $383,333,000

Legal Debt Limitation (%) (1) 10.50% 10.50% 10.50% 10.50%

Legal Debt Limitation ($) (1) 40,171,250 40,379,352 40,678,340 40,249,965

City Debt Outstanding (2) 7,054,197 6,532,491 22,901,729 25,348,658

Less: Applicable Debt Service Fund Amounts 0 0 (93,536) (25,952)

Net Indebtedness Subject to Limitation 7,054,197 6,532,491 22,808,193 25,322,706

Overall Legal Debt Margin $33,117,053 $33,846,861 $17,870,147 $14,927,259

Unvoted Debt

Net Assessed Valuation $382,583,330 $384,565,260 $387,412,760 $383,333,000

Legal Debt Limitation (%) (1)(a) 10.50% 10.50% 10.50% 10.50%

Legal Debt Limitation ($) (1) 40,171,250 40,379,352 40,678,340 40,249,965

City Debt Outstanding (2) 7,054,197 6,532,491 22,901,729 25,348,658

Less: Applicable Debt Service Fund Amounts 0 0 (93,536) (25,952)

Net Indebtedness Subject to Limitation 7,054,197 6,532,491 22,808,193 25,322,706

Overall Legal Debt Margin $33,117,053 $33,846,861 $17,870,147 $14,927,259

(1) Direct Debt Limitation based upon Section 133, The Uniform Bond Act of the Ohio Revised Code.

(a) Based on City Charter the City has an additional 5 mills of unvoted debt limitation in addition to the statutory 5.5%.

(2) City Debt Outstanding includes Non Self-Supporting General Obligation Bonds and Notes only.

Enterprise Debt is not considered in the computation of the Legal Debt Margin.

Coleman's Crossing Tax Increment Financing Notes are not considered in the computation of the Legal Debt Margin.



Debt Limitations

Last Ten Years

- S 24 -

2013 2014 2015 2016 2017 2018

$366,023,040 $372,156,750 $374,110,230 $415,609,670 $418,841,690 $425,105,820

10.50% 10.50% 10.50% 10.50% 10.50% 10.50%

38,432,419 39,076,459 39,281,574 43,639,015 43,978,377 44,636,111

23,550,587 22,822,516 20,269,445 20,511,374 20,258,303 17,870,232

(13,710) (185,340) (11,328) 0 0 0

23,536,877 22,637,176 20,258,117 20,511,374 20,258,303 17,870,232

$14,895,542 $16,439,283 $19,023,457 $23,127,641 $23,720,074 $26,765,879

$366,023,040 $372,156,750 $374,110,230 $415,609,670 $418,841,690 $425,105,820

10.50% 10.50% 10.50% 10.50% 10.50% 10.50%

38,432,419 39,076,459 39,281,574 43,639,015 43,978,377 44,636,111

23,550,587 22,822,516 20,269,445 20,511,374 20,258,303 17,870,232

(13,710) (185,340) (11,328) 0 0 0

23,536,877 22,637,176 20,258,117 20,511,374 20,258,303 17,870,232

$14,895,542 $16,439,283 $19,023,457 $23,127,641 $23,720,074 $26,765,879

(a) Based on City Charter the City has an additional 5 mills of unvoted debt limitation in addition to the statutory 5.5%.


- S 25 -

2009 2010 2011 2012

Water System Bonds (1 b) (1 e)

Gross Revenues (2) $6,842,361 $7,118,061 $7,177,333 $7,202,368

Direct Operating Expenses (3) 3,130,754 2,918,705 2,792,616 3,352,626

Net Revenue Available for Debt Service 3,711,607 4,199,356 4,384,717 3,849,742

Annual Debt Service Requirement (4) 2,074,209 2,088,208 2,109,185 2,108,591

Coverage 1.79 2.01 2.08 1.83

Sewer System Bonds (1 a) (1 c) (1 d)

Gross Revenues (2) $8,059,976 $7,749,088 $8,674,801 $9,620,144

Direct Operating Expenses (3) 3,702,375 3,313,906 4,109,674 4,075,326

Net Revenue Available for Debt Service 4,357,601 4,435,182 4,565,127 5,544,818

Annual Debt Service Requirement (4) 5,847,122 5,847,523 6,297,523 6,686,731

Coverage 0.75 0.76 0.72 0.83

(1) The Mortgage Revenue Binds were issued as follows:

(a) The Sewer System Mortgage Revenue Bonds were issued in 2007, in the amount of $31,555,000.

In 2016, $29,460,000 of this principal was refunded.

(b) The Water System Mortgage Revenue Bonds were issued in 2007, in the amount of $21,335,000.

In 2016, $20,130,000 of this principal was refunded.

(c) The 2006 Sewer System Mortgage Revenue Bonds were refunded in 2015, in the amount of $31,470,000.

In addition, $14,875,000 of notes were moved to mortgage revenue bonds in 2015.

(d) The 2007 Sewer System Mortgage Revenue Bonds were refunded in 2016, in the amount of $79,125,000.

(e) The 2007 Water System Mortgage Revenue Bonds were refunded in 2016, in the amount of $20,130,000.

(2) Gross revenues include operating revenues plus interest income.

(3) Direct operating expenses include operating expenses less depreciation.

(4) Annual debt service requirements include principal and interest on revenue bonds only.



Pledged Revenue Coverage

Last Ten Years

- S 26 -

2013 2014 2015 2016 2017 2018

$8,006,753 $8,563,373 $8,215,753 $10,400,936 $10,351,689 $11,108,270

3,164,896 3,173,769 3,254,153 2,827,898 3,836,065 3,705,922

4,841,857 5,389,604 4,961,600 7,573,038 6,515,624 7,402,348

1,094,706 1,105,019 1,119,769 1,871,245 1,879,882 1,571,300

4.42 4.88 4.43 4.05 3.47 4.71

$11,199,166 $12,315,276 $11,677,431 $14,201,736 $14,483,583 $15,676,628

4,335,822 4,480,705 5,069,564 4,970,661 5,684,363 6,517,878

6,863,344 7,834,571 6,607,867 9,231,075 8,799,220 9,158,750

6,834,611 6,827,361 4,834,152 10,164,245 7,073,935 6,813,744

1.00 1.15 1.37 0.91 1.24 1.34


- S 27 -

Calendar Year 2009 2010 2011 2012 2013

Population (1)

City of Marysville 18,394 22,094 19,856 22,187 22,306

Union County 48,903 52,370 52,370 52,715 53,306

Income (2) (a)

Total Personal (in thousands) $633,765 $751,306 $711,857 $795,426 $861,346

Per Capita $34,455 $34,005 $35,851 $35,851 $38,615

Unemployment Rate (3)

Federal 9.3% 9.6% 8.9% 7.8% 6.7%

State 10.1% 10.1% 8.6% 6.7% 7.1%

Union County 8.3% 8.4% 5.9% 5.0% 4.9%

Civilian Work Force Estimates (3)

State 5,936,000 5,898,000 5,806,000 5,729,000 5,758,000

Union County 26,000 25,900 26,900 27,100 27,200

Sources:

(1) US Bureau of Census, Population Division for 2004-2013

(2) US Department of Commerce, Bureau of Economic Analysis

(a) Per Capita Income is only available by County, Total Personal Income is a calculation, 2013 is an estimate.

(3) State Department of Labor Statistics


Demographic and Economic Statistics

Last Ten Years

- S 28 -

2014 2015 2016 2017 2018

22,534 22,765 23,023 23,286 23,286

53,776 54,277 55,457 56,741 0

$909,743 $970,017 $1,062,350 $1,074,486 $1,226,128

$40,372 $42,610 $46,143 $46,143 $52,045

5.6% 5.0% 4.9% 4.4% 3.7%

5.1% 4.8% 5.0% 4.7% 4.8%

3.7% 3.5% 3.8% 3.3% 3.7%

5,726,000 5,694,000 5,703,013 5,774,000 5,754,900

27,300 27,400 27,300 27,600 28,700


- S 29 -


- S 30 -


Principal Employers

Current Year and Nine Years Ago

Percentage

Number of of Total

Employer Nature of Business Employees Rank Employment

The Scotts Miracle-Gro Company Lawn Care Products 1,388 1 11.87%

Marysville Exempted School District Education 847 2 7.24%

Memorial Hospital of Union County Healthcare 805 3 6.88%

Ohio Reformatory for Women Government 743 4 6.35%

Union County Government 608 5 5.20%

Conitech USA Manufacturing 350 6 2.99%

City of Marysville Government 299 7 2.56%

Nestle R&D Center Inc. Research & Development 242 8 2.07%

Scoito Services Retail 183 9 1.55%

Parker Hannifin Hydraulics Manufacturing 161 10 1.38%

Total 5,626 48.09%

Total Employment within the City 11,698

Percentage

Number of of Total

Employer Nature of Business Employees Rank Employment

The Scotts Miracle-Gro Company Lawn Care Products 1,250 1 14.34%

Memorial Hospital of Union County Healthcare 697 2 8.00%

Marysville Exempted School District Education 626 3 7.18%

Union County Government 478 4 5.48%

Ohio Reformatory for Women Government 477 5 5.47%

Wal-mart Retail 315 6 3.61%

Scioto Corporation Custodial/Janitor Supplies 256 7 2.94%

Veyance Technologies Manufacturing 250 8 2.87%

Nestle R&D Center Inc. Research & Development 230 9 2.64%

Parker Hannifin Hydraulics Manufacturing 200 10 2.29%

Total 4,779 54.82%

Total Employment within the City 8,717

Source: City Income Tax Department

2018

2009

- S 31 -

2009 2010 2011 2012 2013


General Government

Finance 9.00 8.00 9.50 9.00 10.00

City Council 4.50 4.50 4.50 4.50 4.50

Computer Systems 1.00 1.00 2.00 3.00 3.00

City Administration 2.00 2.00 2.50 2.00 2.00

Human Resources 2.00 2.00 2.50 2.50 2.50

City Attorney 1.50 1.50 1.50 1.50 1.50

Mayor 0.50 0.50 0.50 0.50 0.50

Engineer 9.00 8.00 6.50 7.00 9.00

Security of Persons and Property

Police 38.50 36.50 37.50 38.00 39.00

Fire 32.00 28.50 31.50 30.50 41.00

Municipal Court 12.00 12.00 12.00 12.00 12.00

Transportation

Street 19.50 19.50 19.50 18.50 17.00

Leisure Time Activities

Parks and Recreation 24.50 24.50 24.50 25.00 23.50

Community Environment

Buildings & Grounds 10.00 7.50 7.50 10.50 10.50

Service 3.00 3.00 3.00 3.50 3.50


Utilities

Water 17.00 17.00 17.00 17.00 17.00

Sewer 17.00 17.00 17.00 17.00 17.00

Total Employees 203.00 193.00 199.00 202.00 213.50

Method: 1.00 for each full-time, 0.50 for each part-time and seasonal employees

are calculated based on hours paid.



Full Time Equivalent Employees by Function

Last Ten Years

- S 32 -

2014 2015 2016 2017 2018

10.50 10.50 12.50 10.50 10.50

4.50 4.50 4.50 4.50 4.50

3.00 3.00 3.00 4.00 4.00

2.00 2.00 2.00 2.00 2.00

2.50 2.50 2.50 3.00 3.00

1.50 1.50 1.50 1.50 1.50

0.50 0.50 0.00 0.00 0.00

10.00 9.50 10.50 11.50 11.50

39.50 45.00 45.00 45.00 46.00

41.50 41.50 41.50 44.00 46.00

12.00 12.00 12.00 12.00 13.00

18.00 19.50 21.50 22.50 22.50

24.00 23.00 24.50 28.50 28.50

12.00 10.50 10.50 11.50 12.50

2.00 3.00 3.00 4.00 2.00

17.00 17.50 19.00 17.00 18.00

16.50 16.50 16.50 17.00 17.00

217.00 222.50 230.00 238.50 242.50


- S 33 -

2009 2010 2011 2012 2013


General Government

Court

Number of Traffic Cases 6,181 6,109 5,281 6,375 7,048

Number of Criminal Cases 1,989 1,223 1,191 1,146 1,593

Number of Civil Cases 1,424 1,379 1,193 1,068 906

Permits

Number of Residential Permits 68 61 45 72 86

Number of Commercial Permits 6 2 10 3 7


Police

Number of Incident Reports 4,988 3,930 1,990 1,885 1,884

Number of Traffic Accident Reports 391 450 453 473 447

Number of Parking Tickets 112 50 69 49 24

Alarm Calls 413 466 673 581 617

Traffic warnings/citations 1,706 1,160 1,474 1,459 1,781

OMVI arrests 232 197 59 55 55

Fire

Number of Emergency Responses 1,964 1,986 2,002 2,131 2,183

Number of Fire Responses 814 855 884 783 756

Number of Fire Inspections n/a n/a 984 991 1,042

Transportation

Street

Number of times streets needed snow removed 16 46 27 28 59

Tons of salt used 426 1,806 1,907 633 2,339

Number of locations marked for OUPS 123 238 65 112 97

Number of new signs installed 123 188 201 326 302

Number of hours mowing grass 310 639 761 683 572

Community Environment

Number of Plot Grade Utility reviews 68 57 47 78 92

Number of Project Inspections 108 87 75 100 338

Number of Capital Improvement Projects 8 3 8 10 8


Water / Sewer

Number of Water accounts 6,880 6,924 7,002 7,020 7,297

Number of Sewer accounts 6,814 6,853 6,950 6,984 7,057

Water Main Breaks 29 9 12 12 11

Daily Average Consumption (1,000 of gallons) 2,009 1,933 2,035 2,101 1,961

Number of work orders 2,685 2,547 2,224 3,396 4,203

Number of fire hydrants painted 142 61 189 578 400

Sanitation

Number of Customers Served 5,030 5,052 5,071 5,194 5,264


n/a - Data is not available


Operating Indicators by Function

Last Ten Years

- S 34 -

2014 2015 2016 2017 2018

6,693 8,889 9,589 7,697 6,954

747 772 1,069 1,074 1,186

1,079 1,038 1,297 1,412 1,439

170 143 196 194 138

16 9 10 15 40

1,933 2,260 2,278 2,396 1,906

490 590 669 585 580

53 117 43 120 36

627 498 544 705 663

3,343 3,664 3,165 2,322 3,184

77 43 44 43 61

2,430 2,696 1,674 2,681 3,020

764 852 866 854 926

1,035 1,038 1,024 1,020 834

41 51 39 24 37

2,027 1,660 929 932 1,070

68 42 67 127 13,600

357 244 334 421 334

629 428 521 1,000 5,000

138 149 181 189 138

440 463 743 1,483 1,086

4 4 4 4 8

7,612 7,870 8,459 8,326 9,074

7,123 7,510 8,109 8,220 8,733

8 14 10 7 4

2,112 2,228 2,323 2,372 3

3,007 3,063 2,867 2,363 2,600

321 150 100 50 40

5,375 5,485 5,774 5,920 6,102


- S 35 -

2009 2010 2011 2012 2013


General Government

Public Buildings 6 6 6 6 7


Police

Stations 1 1 1 1 1

Patrol Cruisers 28 21 18 19 18

Fire

Stations 1 1 1 1 2

Emergency Vehicles 11 11 11 11 12

Transportation

Street

Streets (linear miles) n/a 114 117 118 119

Street Lights n/a 1,951 1,951 1,958 2,034

Leisure Time Activities

Recreation

Land (acres) 231 231 231 231 231

Buildings 21 21 21 21 21

Parks 15 15 15 15 15


Utilities

Water

Waterlines (Miles) n/a 148 150 152 159

Number of Hydrants 1,414 1,422 1,481 1,530 1,593

Sewer

Sewerlines (Miles) n/a 135 138 140 141

Manholes n/a 943 2,434 2,472 2,494

Storm Water Drainage

Storm Drains (Miles) n/a 70 70 71 72


n/a - Data is not available

Capital Asset Statistics by Function

Last Ten Years


- S 36 -

2014 2015 2016 2017 2018

7 7 7 7 7

1 1 1 1 1

18 13 19 14 15

2 2 2 2 2

12 12 11 11 11

121 123 126 114 142

1,949 2,012 2,110 2,103 2,103

231 238 238 238 238

21 21 21 21 21

15 18 18 18 18

162 164 166 168 198

1,675 1,925 2,039 2,212 2,212

143 144 148 151 263

2,507 2,518 2,618 2,697 2,697

75 76 78 143 260


- S 37 -


- S 38 -

88 East Broad Street, Columbus, Ohio 43215 Phone: 614-466-4514 or 800-282-0370

www.ohioauditor.gov

CITY OF MARYSVILLE

UNION COUNTY

CLERK’S CERTIFICATION

This is a true and correct copy of the report which is required to be filed in the Office of the Auditor of State pursuant to Section 117.26, Revised Code, and which is filed in Columbus, Ohio.

CLERK OF THE BUREAU CERTIFIED JULY 30, 2019

http://www.ohioauditor.gov/


D-1

APPENDIX D

FORM OF APPROVING LEGAL OPINION OF BRICKER & ECKLER LLP

Stifel, Nicolaus & Company, Incorporated Columbus, Ohio Build America Mutual Assurance Company New York, New York

We have acted as bond counsel to the City of Marysville, Ohio (the "City") in connection with the issuance by the City of $40,465,000 Water System Mortgage Revenue Bonds, Series 2020, dated May 20, 2020 (the "Series 2020 Bonds"). In such capacity, we have examined such law and such certified proceedings, certifications and other documents as we have deemed necessary to render this opinion.

The Series 2020 Bonds are issued pursuant to an ordinance adopted by the Council of the City on February 10, 2020, and are secured by an Indenture of Mortgage, dated as of June 1, 1991, as amended and supplemented by a First Supplemental Indenture of Mortgage, dated as of November 15, 1993, a Second Supplemental Indenture of Mortgage, dated as of April 1, 2002, a Third Supplemental Indenture of Mortgage, dated as of November 1, 2003, a Fourth Supplemental Indenture of Mortgage, dated as of October 15, 2007, a Fifth Supplemental Indenture of Mortgage, dated as of June 15, 2016 and a Sixth Supplemental Indenture Mortgage, dated as of May 20, 2020 (collectively, the "Indenture"), between the City and The Huntington National Bank, as Trustee.

Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation.

Based upon the foregoing, we are of the opinion that, under existing law:

1. The Series 2020 Bonds are valid and binding special obligations of the City, and the principal of and premium, if any, and interest on the Series 2020 Bonds are payable solely from revenues and other moneys pledged and assigned by the Indenture to secure that payment. The Series 2020 Bonds are not general obligations, debt or bonded indebtedness of the City, and the holders or owners of the Series 2020 Bonds do not have the right to have excises or taxes levied by the City, the State of Ohio, or any political subdivision thereof for the payment of principal of or premium, if any, or interest on the Series 2020 Bonds.

2. The Indenture has been duly authorized, executed and delivered by the City and constitutes a valid, binding and enforceable obligation of the City.

3. The interest on the Series 2020 Bonds is excluded from gross income for federal income tax

purposes under Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and is not treated as an item of tax preference under Section 57 of the Code for purposes of the alternative minimum tax. The opinion set forth in the preceding sentence is subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Series 2020 Bonds in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The City has

D-2

covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause interest on the Series 2020 Bonds to be included in gross income for federal income tax purposes retroactively to the date of issuance of the Series 2020 Bonds.

4. Interest on the Series 2020 Bonds, the transfer thereof, and any profit made on their sale,

exchange or other disposition, are exempt from the Ohio personal income tax, the Ohio commercial activity tax, the net income base of the Ohio corporate franchise tax, and municipal, school district, and joint economic development district income taxes in Ohio.

Although we have participated in the preparation of portions of the Official Statement dated April

29, 2020 relating to the Series 2020 Bonds, we have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement (except to the extent, if any, stated in the Official Statement) or other offering material relating to the Series 2020 Bonds and we express no opinion and make no representation relating thereto (excepting only the matters set forth as our opinion in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Series 2020 Bonds other than as expressly set forth herein.

Please be advised that the rights of the holders of the Series 2020 Bonds and the enforceability thereof are limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally, and by equitable principles, whether considered at law or in equity.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. We bring to your attention the fact that our legal opinions are an expression of our professional judgment and are not a guarantee of a result.

Very truly yours,

E-1

APPENDIX E (1 of 2)

FORM OF CLOSING CERTIFICATE

$40,465,000 City of Marysville, Ohio

Water System Mortgage Revenue Bonds, Series 2020 Dated May 20, 2020

To Stifel, Nicolaus & Company, Incorporated: It is my understanding that, in considering whether to purchase the above-captioned obligations, you have relied on the Official Statement for such issue dated April 29, 2020 (the "Official Statement"), which Official Statement was prepared and executed by and for the City of Marysville, Ohio (the "City") under the direction of its City Council. In connection with your reliance as stated above, I hereby certify that:

1. I have reviewed the Official Statement and have made such investigation and inquiries as

I deemed necessary in the circumstances; 2. The statements and information contained in the Official Statement are correct and

complete in all material respects, and they do not omit any statement or information necessary in order to make the statements and information therein, in light of the circumstances under which they were made, not misleading or incomplete in any material respect; and

3. To the best of my knowledge, since the date of the Official Statement, nothing has occurred

which has caused, or which might reasonably be expected to cause, a material adverse change in the condition or prospects of the City.

Date: May 20, 2020

Director of Finance City of Marysville, Ohio

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APPENDIX E (2 of 2)

FORM OF CLOSING CERTIFICATE



To Stifel, Nicolaus & Company, Incorporated: It is my understanding that, in considering whether to purchase the above-captioned issue, you have relied on the Official Statement for such issue dated April 29, 2020 (the "Official Statement"), which Official Statement was prepared and executed by and for the City of Marysville, Ohio (the "City") under the direction of its City Council. In connection with your reliance as stated above, I hereby certify that:

1. I have reviewed the section of the Official Statement captioned "LITIGATION" and have made such investigation and inquiries as I deemed necessary in the circumstances;

2. The statements and information contained in the section of the Official Statement captioned

"LITIGATION" are correct and complete in all material respects, and they do not omit any statement or information necessary in order to make the statements and information therein, in light of the circumstances under which they were made, not misleading or incomplete in any material respect; and

3. To the best of my knowledge, since the date of the Official Statement, nothing has occurred

which has caused, or which might reasonably be expected to cause, a material adverse change in the condition or prospects of the City.

Date: May 20, 2020 Law Director City of Marysville, Ohio

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APPENDIX F

FORM OF CONTINUING DISCLOSURE CERTIFICATE



This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the Director of Finance of the City of Marysville, Ohio (the "City") pursuant to an ordinance of the City Council of the City authorizing the issuance and sale of $40,465,000 Water System Mortgage Revenue Bonds, Series 2020, dated May 20, 2020 (the "Series 2020 Bonds"). The City covenants and agrees as follows: Section 1. Definitions. The following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the City referred to in this Official Statement and any appendix hereto. "EMMA" shall mean the Electronic Municipal Market Access system of the MSRB for use in the collection and dissemination of information pursuant to the Rule. The current website address for EMMA is http://emma.msrb.org. "Filing Date" means the last day of the ninth month following the end of each Fiscal Year (or the next succeeding business day if that day is not a business day), beginning September 30, 2020.

"Financial Obligation" means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.

"Fiscal Year" means the 12-month period beginning on January 1 that ends on December 31 of the same calendar year, or such other 12-month period as the City shall subsequently adopt as its fiscal year. "Listed Events" shall mean any of the events listed in Section 5 of this Disclosure Certificate. "MSRB" shall mean the Municipal Securities Rulemaking Board (www.msrb.org). "Official Statement" shall mean the Official Statement prepared in connection with the sale of the Series 2020 Bonds. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with the offering of the Series 2020 Bonds. "Rule" shall mean Rule 15c2-12 adopted by the United States Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.

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Section 2. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Series 2020 Bonds and in order to assist the Participating Underwriter in complying with the Rule. Section 3. Provision of Annual Reports.

(a) The City shall provide to the MSRB, not later than the Filing Date, an Annual Report for the immediately preceding fiscal year, which Annual Report shall be consistent with the requirements of Section 4 of this Disclosure Certificate.

(b) If the City fails to provide an Annual Report to the MSRB by the date set forth in subsection

(a) of this Section 3, the City shall send in a timely manner to the MSRB notice of such failure, which shall include a statement as to the date by which the City anticipates that the Annual Report will be provided to the MSRB.

Section 4. Contents of the Annual Report.

(a) The Annual Report shall contain or incorporate by reference the following:

(1) Audited financial statements of the City.

(2) Fiscal year-end data for the table entitled "Largest Taxpayers" contained in APPENDIX A to the Official Statement under the caption "CITY TAX BASE – Largest Taxpayers in the City."

(3) Fiscal year-end data for the table entitled "Historical Property Tax Collections" contained in APPENDIX A to the Official Statement under the caption "CITY TAX BASE – Property Tax Revenues." (4) Fiscal year-end data for the table entitled "Historical Income Tax Revenues" contained in APPENDIX A to the Official Statement under the caption "CITY TAX BASE – Income Tax Revenues." (5) Fiscal year-end data for the table entitled "General Fund – Major Tax Revenue Sources" contained in APPENDIX A to the Official Statement under the caption "FINANCES OF THE CITY – General Fund Revenue Sources." (6) Fiscal year-end data for the table entitled "Top Ten Utility Customers" contained in APPENDIX A to the Official Statement under the caption "THE UTILITY – Customer Base." (7) Fiscal year-end data for the table entitled "Historical and Projected Revenues and Expenditures of the Utility" contained in APPENDIX A to the Official Statement under the caption "THE UTILITY – Historical and Projected Revenues and Expenditures of the Utility."

(8) Fiscal year-end data for the table entitled "Historical Demand of the Utility" contained in APPENDIX A to the Official Statement under the caption "THE UTILITY – Historical and Future Growth of Use of the Utility."

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(9) Fiscal year-end data for the table entitled "Capacity and Average Daily Flow of the Utility" contained in APPENDIX A to the Official Statement under the caption "THE UTILITY – Historical and Future Growth of Use of the Utility."

(10) Fiscal year-end data for the table entitled "Classification of Users of the Utility" contained in Appendix A to the Official Statement under the caption "THE UTILITY – Customer Base."

(11) Fiscal year-end data for the table entitled "Rates for the Utility" contained in Appendix A to the Official Statement under the caption "THE UTILITY – Utility Rates and Charges."

(12) Fiscal year-end data for the table entitled "Capacity Fees for the Utility" contained in Appendix A to the Official Statement under the caption "THE UTILITY – Utility Rates and Charges." All or any of the items listed above may be incorporated by specific reference from other documents which have previously been provided to the MSRB. If the document incorporated by reference is a final official statement, it must be available from the MSRB. If this City prepares a Comprehensive Annual Financial Report ("CAFR") that includes each of the items listed above, the City may designate the CAFR as the Annual Report.

(b) The audited financial statements of the City to be included in the Annual Report shall be

initially prepared in accordance with generally accepted accounting principles (provided, however, that if the City shall subsequently change its accounting method, the audited financial statements shall indicate the accounting method then in use) and shall be accompanied by a report of the Auditor of the State of Ohio, or, if applicable, the independent certified public accountants who audited the financial statements; provided, however, if such audited financial statements are not available to the City at the time of providing the Annual Report to the MSRB as provided in Section 3 of this Disclosure Certificate, the City will provide such audited financial statements to the MSRB as provided in Section 3 of this Disclosure Certificate as soon as they are available.

Section 5. Reporting of Significant Events. The City shall provide to the MSRB in a timely manner not in excess of ten business days after the occurrence of the event notice of any of the following events with respect to the Series 2020 Bonds:

(a) Principal and interest payment delinquencies;

(b) Non-payment related defaults, if material;

(c) Unscheduled draws on debt service reserves reflecting financial difficulties;

(d) Unscheduled draws on credit enhancements reflecting financial difficulties;

(e) Substitution of credit or liquidity providers, or their failure to perform;

(f) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other

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material notices or determinations with respect to the tax status of the Series 2020 Bonds, or other material events affecting the tax status of the Series 2020 Bonds;

(g) Modifications to rights of holders of the Series 2020 Bonds, if material;

(h) (1) Calls for redemption of the Series 2020 Bonds, if material, other than calls pursuant to the mandatory sinking fund provisions of the Series 2020 Bonds, if any, and (2) tender offers;

(i) Defeasances;

(j) Release, substitution or sale of property securing repayment of the Series 2020 Bonds, if material;

(k) Rating changes;

(l) Bankruptcy, insolvency, receivership or similar event of the City;

(m) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;

(n) Appointment of a successor or additional trustee or the change of name of a trustee, if material;

(o) Incurrence of a Financial Obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the City, any of which affect holders of the Bonds, if material; and

(p) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the City, any of which reflect financial difficulties.

For the purposes of subsection (l), above, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. Section 6. Means of Reporting Information. The City shall provide information to the MSRB according to the MSRB's prescribed reporting requirements, as the same may be amended from time to time. The MSRB currently requires that all filings made pursuant to the Rule be submitted thought the MSRB's EMMA system. As of the date hereof, submissions to EMMA must be by electronic submission in an electronic portable document format ("PDF") that shall have a word-search function permitting a user to search the document.

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Section 7. Termination of Reporting Obligation. The City's obligations under this Disclosure Certificate shall terminate upon the defeasance, redemption or payment in full of all of the Series 2020 Bonds. Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if the City has received an opinion of counsel knowledgeable in federal securities laws to the effect that such amendment or waiver would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been effective on the date hereof but taking into account any subsequent change in or official interpretation of the Rule. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information (using the means of dissemination set forth in this Disclosure Certificate or any other means of communication) or including any other information in any Annual Report or providing notice of occurrence of events, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in an Annual Report or provide notice of occurrence of events which are not Listed Events in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 10. Default; Remedies. Failure of the City to perform any of its undertakings contained in this Disclosure Certificate shall not constitute an event of default with respect to the Series 2020 Bonds. The exclusive remedy for any such failure shall be enforcement of the City's obligations to so perform by actions or proceedings taken in accordance with Ohio Revised Code Section 133.25(B)(4)(b) or Section 133.25(C)(1). Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Participating Underwriter and the holders of the Series 2020 Bonds, and shall create no rights in any other person or entity. Date: May 20, 2020 CITY OF MARYSVILLE, OHIO By: Title: Director of Finance


APPENDIX G

SPECIMEN MUNICIPAL BOND INSURANCE POLICY &

SPECIMEN MUNICIPAL BOND DEBT SERVICE RESERVE INSURANCE POLICY

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MUNICIPAL BOND INSURANCE POLICY

ISSUER: [NAME OF ISSUER] Policy No: _____ MEMBER: [NAME OF MEMBER] BONDS: $__________ in aggregate principal Effective Date: _________ amount of [NAME OF TRANSACTION] [and maturing on]

Risk Premium: $__________ Member Surplus Contribution: $ _________

Total Insurance Payment: $_________ BUILD AMERICA MUTUAL ASSURANCE COMPANY (“BAM”), for consideration received, hereby UNCONDITIONALLY AND

IRREVOCABLY agrees to pay to the trustee (the “Trustee”) or paying agent (the “Paying Agent”) for the Bonds named above (as set forth in the documentation providing for the issuance and securing of the Bonds), for the benefit of the Owners or, at the election of BAM, directly to each Owner, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer.

On the later of the day on which such principal and interest becomes Due for Payment or the first Business Day following the Business Day on which BAM shall have received Notice of Nonpayment, BAM will disburse (but without duplication in the case of duplicate claims for the same Nonpayment) to or for the benefit of each Owner of the Bonds, the face amount of principal of and interest on the Bonds that is then Due for Payment but is then unpaid by reason of Nonpayment by the Issuer, but only upon receipt by BAM, in a form reasonably satisfactory to it, of (a) evidence of the Owner’s right to receive payment of such principal or interest then Due for Payment and (b) evidence, including any appropriate instruments of assignment, that all of the Owner’s rights with respect to payment of such principal or interest that is Due for Payment shall thereupon vest in BAM. A Notice of Nonpayment will be deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by BAM is incomplete, it shall be deemed not to have been received by BAM for purposes of the preceding sentence, and BAM shall promptly so advise the Trustee, Paying Agent or Owner, as appropriate, any of whom may submit an amended Notice of Nonpayment. Upon disbursement under this Policy in respect of a Bond and to the extent of such payment, BAM shall become the owner of such Bond, any appurtenant coupon to such Bond and right to receipt of payment of principal of or interest on such Bond and shall be fully subrogated to the rights of the Owner, including the Owner’s right to receive payments under such Bond. Payment by BAM either to the Trustee or Paying Agent for the benefit of the Owners, or directly to the Owners, on account of any Nonpayment shall discharge the obligation of BAM under this Policy with respect to said Nonpayment.

Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Policy. “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer’s Fiscal Agent (as defined herein) are authorized or required by law or executive order to remain closed. “Due for Payment” means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity (unless BAM shall elect, in its sole discretion, to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration) and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. “Nonpayment” means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. “Nonpayment” shall also include, in respect of a Bond, any payment made to an Owner by or on behalf of the Issuer of principal or interest that is Due for Payment, which payment has been recovered from such Owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction. “Notice” means delivery to BAM of a notice of claim and certificate, by certified mail, email or telecopy as set forth on the attached Schedule or other acceptable electronic delivery, in a form satisfactory to BAM, from and signed by an Owner, the Trustee or the Paying Agent, which notice shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount, (d) payment instructions and (e) the date such claimed amount becomes or became Due for Payment. “Owner” means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof, except that “Owner” shall not include the Issuer, the Member or any other person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds.

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BAM may appoint a fiscal agent (the “Insurer’s Fiscal Agent”) for purposes of this Policy by giving written notice to the Trustee, the Paying Agent, the Member and the Issuer specifying the name and notice address of the Insurer’s Fiscal Agent. From and after the date of receipt of such notice by the Trustee, the Paying Agent, the Member or the Issuer (a) copies of all notices required to be delivered to BAM pursuant to this Policy shall be simultaneously delivered to the Insurer’s Fiscal Agent and to BAM and shall not be deemed received until received by both and (b) all payments required to be made by BAM under this Policy may be made directly by BAM or by the Insurer’s Fiscal Agent on behalf of BAM. The Insurer’s Fiscal Agent is the agent of BAM only, and the Insurer’s Fiscal Agent shall in no event be liable to the Trustee, Paying Agent or any Owner for any act of the Insurer’s Fiscal Agent or any failure of BAM to deposit or cause to be deposited sufficient funds to make payments due under this Policy.

To the fullest extent permitted by applicable law, BAM agrees not to assert, and hereby waives, only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses (including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to BAM to avoid payment of its obligations under this Policy in accordance with the express provisions of this Policy. This Policy may not be canceled or revoked.

This Policy sets forth in full the undertaking of BAM and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, any premium paid in respect of this Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds prior to maturity. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. THIS POLICY IS ISSUED WITHOUT CONTINGENT MUTUAL LIABILITY FOR ASSESSMENT.

In witness whereof, BUILD AMERICA MUTUAL ASSURANCE COMPANY has caused this Policy to be executed on its behalf by its

Authorized Officer.

BUILD AMERICA MUTUAL ASSURANCE COMPANY By: _______________________________________ Authorized Officer

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Notices (Unless Otherwise Specified by BAM) Email: [email protected] Address: 200 Liberty Street, 27th floor New York, New York 10281 Telecopy: 212-962-1524 (attention: Claims)

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MUNICIPAL BOND DEBT SERVICE RESERVE INSURANCE POLICY

ISSUER: ISSUER_NAME, STATE_NAME

MEMBER: MEMBER_COMPANY, STATE_NAME

BONDS: $_______________ in aggregate principal amount of , Maximum Policy Limit: $

Policy No:

Effective Date:

Risk Premium: $________ Member Surplus Contribution: $________

Total Insurance Payment: $________

BUILD AMERICA MUTUAL ASSURANCE COMPANY (“BAM”), for consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY agrees to pay to the trustee (the “Trustee”) or paying agent (the “Paying Agent”) for the Bonds named above under the Security Documents, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer.

BAM will make payment as provided in this Policy to the Trustee or Paying Agent on the later of (i) the Business Day on which such principal and interest becomes Due for Payment and (ii) the first Business Day following the Business Day on which BAM shall have received a completed Notice of Nonpayment in a form reasonably satisfactory to it. A Notice of Nonpayment will be deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by BAM is incomplete, it shall be deemed not to have been received by BAM for purposes of this paragraph, and BAM shall promptly so advise the Trustee or Paying Agent who may submit an amended Notice of Nonpayment.

Payment by BAM to the Trustee or Paying Agent for the benefit of the Owners shall, to the extent thereof, discharge the obligation of BAM under this Policy. Upon disbursement under this Policy in respect of a Bond and to the extent of such payment, (a) BAM shall become the owner of such Bond, any appurtenant coupon to such Bond and right to receipt of payment of principal of or interest on such Bond and shall be fully subrogated to the rights of the Owner, including the Owner’s right to receive payments under such Bond and (b) BAM shall become entitled to reimbursement of the amount so paid (together with interest and expenses) pursuant to the Security Documents and Debt Service Reserve Agreement.

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The amount available under this Policy for payment shall not exceed the Policy Limit. The amount available at any particular time to be paid to the Trustee or Paying Agent under the terms of this Policy shall automatically be reduced by and to the extent of any payment under this Policy. However, after such payment, the amount available under this Policy shall be reinstated in full or in part, but only up to the Policy Limit, to the extent of the reimbursement of such payment (after taking into account the payment of interest and expenses) to BAM by or on behalf of the Issuer. Within three (3) Business Days of such reimbursement, BAM shall provide the Trustee or the Paying Agent with Notice of Reinstatement, in the form of Exhibit A attached hereto, and such reinstatement shall be effective as of the date BAM gives such notice.

Payment under this Policy shall not be available with respect to (a) any Nonpayment that occurs prior to the Effective Date or after the end of the Term of this Policy or (b) Bonds that are not outstanding under the Security Documents. If the amount payable under this Policy is also payable under another BAM issued policy insuring the Bonds, payment first shall be made under this Policy to the extent of the amount available under this Policy up to the Policy Limit. In no event shall BAM incur duplicate liability for the same amounts owing with respect to the Bonds that are covered under this Policy and any other BAM issued insurance policy.

Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Policy. “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer’s Fiscal Agent (as hereinafter defined) are authorized or required by law or executive order to remain closed. “Debt Service Reserve Agreement” means the Debt Service Reserve Agreement, if any, dated as of the effective date hereof, in respect of this Policy, as the same may be amended or supplemented from time to time. “Due for Payment” means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity (unless BAM shall elect, in its sole discretion, to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration) and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. “Nonpayment” means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. “Nonpayment” shall also include, in respect of a Bond, any payment made to an Owner by or on behalf of the Issuer of principal or interest that is Due for Payment, which payment has been recovered from such Owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction. “Notice” means delivery to BAM of a notice of claim and certificate, by certified mail, email or telecopy as set forth on the attached Schedule or other acceptable electronic delivery, in a form satisfactory to BAM, from and signed by the Trustee or the Paying Agent, which notice shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount, (d) payment instructions and (e) the date such claimed amount becomes or became Due for Payment. “Owner” means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof, except that “Owner” shall not include the Issuer, the Member or any person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds. “Policy Limit” means the dollar amount of the debt service reserve fund required to be maintained for the

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Bonds by the Security Documents from time to time (the “Reserve Account Requirement”), or the portion of the Reserve Account Requirement for the Bonds provided by this Policy as specified in the Security Documents or Debt Service Reserve Agreement, if any, but in no event shall the Policy Limit exceed the Maximum Policy Limit set forth above. The Policy Limit shall automatically and irrevocably be reduced from time to time by the amount of or, if this Policy is only providing a portion of the Reserve Account Requirement, in the same proportion as, each reduction in the Reserve Account Requirement, as provided in the Security Documents or Debt Service Reserve Agreement. “Security Documents” means any resolution, ordinance, trust agreement, trust indenture, loan agreement and/or lease agreement and any additional or supplemental document executed in connection with the Bonds. “Term” means the period from and including the Effective Date until the earlier of (i) the maturity date for the Bonds and (ii) the date on which the Bonds are no longer outstanding under the Security Documents.

BAM may appoint a fiscal agent (the “Insurer’s Fiscal Agent”) for purposes of this Policy by giving written notice to the Trustee and the Paying Agent specifying the name and notice address of the Insurer’s Fiscal Agent. From and after the date of receipt of such notice by the Trustee and the Paying Agent, (a) copies of all notices required to be delivered to BAM pursuant to this Policy shall be simultaneously delivered to the Insurer’s Fiscal Agent and to BAM and shall not be deemed received until received by both and (b) all payments required to be made by BAM under this Policy may be made directly by BAM or by the Insurer’s Fiscal Agent on behalf of BAM. The Insurer’s Fiscal Agent is the agent of BAM only, and the Insurer’s Fiscal Agent shall in no event be liable to the Trustee, Paying Agent or any Owner for any act of the Insurer’s Fiscal Agent or any failure of BAM to deposit or cause to be deposited sufficient funds to make payments due under this Policy.

To the fullest extent permitted by applicable law, BAM agrees not to assert, and hereby waives, only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses (including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to BAM to avoid payment of its obligations under this Policy in accordance with the express provisions of this Policy. This Policy may not be canceled or revoked.

This Policy is being issued under and pursuant to and shall be construed under and governed by the laws of the State of New York, without regard to conflict of law provisions.

This Policy sets forth in full the undertaking of BAM and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, any premium paid in respect of this Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds prior to maturity. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. THIS POLICY IS ISSUED WITHOUT CONTINGENT MUTUAL LIABILITY FOR ASSESSMENT.

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In witness whereof, BUILD AMERICA MUTUAL ASSURANCE COMPANY has caused this Policy to be executed on its behalf by its Authorized Officer.

BUILD AMERICA MUTUAL ASSURANCE COMPANY

By: ______________________________________ Authorized Officer

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www.digitalmuni.comwww.digitalmuni.com

OFFICIAL STATEMENT $40,465,000

CITY OF MARYSVILLE, OHIO Water System Mortgage Revenue Bonds, Series 2020

http://www.sudsina.com/