OFFICIAL STATEMENT

NEW ISSUE BOND ANTICIPATION NOTES

In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel, based upon an analysis of existing laws, regulations, rulings and court decisions, and

assuming among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Notes is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”). In the further opinion of Bond Counsel,

interest on the Notes is not a specific preference item for purposes of the federal alternative minimum tax. Bond Counsel is also of the opinion that interest on the

Notes is exempt from personal income taxes imposed by the State of New York or any political subdivision thereof (including The City of New York). Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Notes.

See “TAX MATTERS” herein.

The Notes will NOT be designated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code.

$16,000,000 COUNTY OF MADISON, NEW YORK

GENERAL OBLIGATIONS

$16,000,000 Bond Anticipation Notes, 2020 (the “Notes”)

Dated: May 1, 2020 Due: April 30, 2021

The Notes are general obligations of the County of Madison, New York (the "County") all the taxable real property within

which is subject to the levy of ad valorem taxes to pay the Notes and interest thereon, subject to applicable statutory limitations.

See “NATURE OF OBLIGATION” and “TAX LEVY LIMITATION LAW” herein.

The Notes will not be subject to redemption prior to maturity.

At the option of the purchaser(s), the Notes will be issued as book entry only registered notes or in registered certificated form

in the name of the purchaser. If such Notes are issued as registered in the name of the purchaser, principal of and interest on the

Notes will be payable in Federal Funds. A single note certificate will be issued for those Notes of an issue bearing the same rate of

interest in the aggregate principal amount awarded to such purchaser(s) at such interest rate.

Alternatively, if the Notes are issued as registered non–certificated notes, the Notes will be registered in the name of Cede &

Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, which will act as the securities depository for

the Notes. Noteholders will not receive certificates representing their ownership interest in the notes purchased if the Purchaser(s)

elects to register the Notes. Such Notes will be issued in denominations of $5,000 or integral multiples thereof as may be

determined by such successful bidder(s). If the Notes are issued as registered notes, payment of the principal of and interest on the

Notes to the Beneficial Owner(s) of the Notes will be made by DTC Direct Participants and Indirect Participants in accordance

with standing instructions and customary practices, as is now the case with municipal securities held for the accounts of customers

registered in the name of the purchaser or registered in "street name". Payment will be the responsibility of such DTC Direct or

Indirect Participants and the District, subject to any statutory and regulatory requirements as may be in effect from time to time.

See "BOOK-ENTRY-ONLY SYSTEM" herein.

The Notes are offered when, as and if issued and received by the purchaser(s) and subject to the receipt of the approving legal

opinion as to the validity of the Notes of Orrick, Herrington & Sutcliffe LLP, Bond Counsel, New York, New York. It is

anticipated that the Notes will be available for delivery through the facilities of DTC in Jersey City, New Jersey, or as is agreed

upon with the purchaser(s), on or about May 1, 2020.

ELECTRONIC BIDS for the Notes must be submitted via Fiscal Advisors Auction website ("Fiscal Advisors Auction") accessible via

www.FiscalAdvisorsAuction.com on April 16, 2020 until 10:45 A.M., Prevailing Time, pursuant to the Notice of Sale. No other form of

electronic bidding services will be accepted. No bid will be received after the time for receiving bids specified above. Bids may also be

submitted by facsimile at (315) 930-2354. Once the bids are communicated electronically via Fiscal Advisors Auction on or facsimile to

the County, each bid will constitute an irrevocable offer to purchase the Notes pursuant to the terms provided in the Notice of Sale.

April 9, 2020

THE COUNTY DEEMS THIS OFFICIAL STATEMENT TO BE FINAL FOR PURPOSES OF SECURITIES AND EXCHANGE

COMMISSION RULE 15c2-12 ("THE RULE"), EXCEPT FOR CERTAIN INFORMATION THAT HAS BEEN OMITTED HEREFROM IN

ACCORDANCE WITH SAID RULE AND THAT WILL BE SUPPLIED WHEN THIS OFFICIAL STATEMENT IS UPDATED

FOLLOWING THE SALE OF THE OBLIGATIONS HEREIN DESCRIBED. THIS OFFICIAL STATEMENT WILL BE SO UPDATED

UPON REQUEST OF THE SUCCESSFUL BIDDER(S), AS MORE FULLY DESCRIBED IN THE NOTICE OF SALE WITH RESPECT TO

THE OBLIGATIONS HEREIN DESCRIBED. THE COUNTY WILL COVENANT IN AN UNDERTAKING TO PROVIDE CONTINUING

DISCLOSURE AS DEFINED IN THE RULE WITH RESPECT TO THE NOTES. SEE "APPENDIX – D, MATERIAL EVENT NOTICES

WITH RESPECT TO THE NOTES” HEREIN.

COUNTY OF MADISON

NEW YORK

BOARD OF SUPERVISORS

JOHN M. BECKER

Chairman

CLIFFORD MOSES

Vice-Chairman

RONALD C. BONO YVONNE NIRELLI

MARY CAVANAGH JOSEPH OSTRANDER

LOREN CORBIN MATTHEW ROBERTS

JAMES CUNNINGHAM ALEXANDER R. STEPANSKI

ROCCO DIVERONICA EVE ANN SHWARTZ

JAMES S. GOLDSTEIN THOMAS J. STOKES

DAVID JONES PAUL H. WALROD

FREDERICK LAWRENCE WILLIAM N. ZUPAN

JOSEPH MAGLIOCCA

* * * * * * *

MARK SCIMONE

County Administrator

CINDY J. EDICK

County Treasurer

LOU ANNE RANDALL

Director of Finance

CINDY URTZ

Clerk of the Board of Supervisors

TINA M. WAYLAND-SMITH, ESQ.

County Attorney

FISCAL ADVISORS & MARKETING, INC.

Municipal Advisor

ORRICK, HERRINGTON & SUTCLIFFE LLP

Bond Counsel

No person has been authorized by the County to give any information or to make any representations not contained in this Official Statement, and, if given or

made, such information or representations must not be relied upon as having been authorized. This Official Statement does not constitute an offer to sell or

solicitation of an offer to buy any of the Notes in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. The information, estimates and expressions of opinion 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 County.

TABLE OF CONTENTS

Page

NATURE OF OBLIGATION ................................................... 1

DESCRIPTION OF THE NOTES ........................................... 2

PURPOSE OF ISSUE................................................................ 2

BOOK-ENTRY-ONLY SYSTEM ............................................ 3

Certificated Notes ................................................................... 4

THE COUNTY .......................................................................... 4

General Information................................................................ 4

Transportation ......................................................................... 5

Economic Development .......................................................... 5

Banking Facilities ................................................................... 5

Major Employers .................................................................... 6

Population Trends ................................................................... 6

Selected Wealth and Income Indicators .................................. 6

Unemployment Rate Statistics ................................................ 7

Form of County Government .................................................. 7

Budgetary Procedures ............................................................. 7

Investment Policy ................................................................... 7

State Aid ................................................................................. 8

Employees .............................................................................. 8

Pension Payments ................................................................... 8

Other Post-Employment Benefits ......................................... 10

Other Information ................................................................. 11

Financial Statements ............................................................. 12

New York State Comptroller Report of Examination ........... 12

The State Comptroller’s Fiscal Stress Monitoring System ... 13

TAX INFORMATION ............................................................ 13

Valuations ............................................................................. 13

Tax Rate Per M (Assessed) ................................................... 13

Tax Collection Record .......................................................... 13

Tax Collection Procedure ..................................................... 14

Sales Tax .............................................................................. 14

Largest Taxpayers – 2019 Assessment Roll for 2020 ........... 15

Constitutional Tax Margin .................................................... 15

TAX LEVY LIMITATION LAW .......................................... 16

STATUS OF INDEBTEDNESS.............................................. 17

Constitutional Requirements ................................................ 17

Statutory Procedure ............................................................. 17

Debt Outstanding End of Fiscal Year .................................. 18

Details of Outstanding Indebtedness.................................... 18

Debt Statement Summary .................................................... 19

Estimate of Obligations to be Issued.................................... 19

Lease Purchase Agreement .................................................. 20

Revenue and Tax Anticipation Notes .................................. 20

Bonded Debt Service ........................................................... 20

Estimated Overlapping Indebtedness ................................... 20

Debt Ratios .......................................................................... 20

Page

SPECIAL PROVISIONS AFFECTING

REMEDIES UPON DEFAULT ................................... 21

MARKET AND RISK FACTORS ......................................... 23

HISTORICAL CONTINUING DISCLOSURE

COMPLIANCE ............................................................. 25

Historical Compliance ............................................................... 25

TAX MATTERS ...................................................................... 25

LEGAL MATTERS ................................................................ 26

LITIGATION .......................................................................... 26

RATING ................................................................................... 27

MUNICIPAL ADVISOR ........................................................ 28

CUSIP IDENTIFICATION NUMBERS ............................... 29

MISCELLANEOUS ................................................................ 29

APPENDIX - A

GENERAL FUND - Balance Sheets

APPENDIX - A1

GENERAL FUND – Revenues, Expenditures and

Changes in Fund Balance

APPENDIX - A2

GENERAL FUND – Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

APPENDIX – A3

Changes in Fund Equity

APPENDIX - B

BONDED DEBT SERVICE

APPENDIX - C

AUDITED FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION- DECEMBER 31, 2018

APPENDIX - D

MATERIAL EVENT NOTICES WITH RESPECT TO

THE NOTES

APPENDIX - E

FORM OF BOND COUNSEL’S OPINION

PREPARED WITH THE ASSISTANCE OF

Fiscal Advisors & Marketing, Inc.

120 Walton Street, Suite 600

Syracuse, New York 13202

(315) 752-0051

http://www.fiscaladvisors.com

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OFFICIAL STATEMENT

OF THE

COUNTY OF MADISON, NEW YORK Relating To

$16,000,000 Bond Anticipation Notes, 2020

This Official Statement, which includes the cover page and appendices, has been prepared by the County of Madison, New York

(the "County," and "State," respectively), in connection with the sale by the County of the principal amount of $16,000,000 Bond

Anticipation Notes, 2020 (referred to herein as the "Notes").

The factors affecting the County’s financial condition and the Notes are described throughout this Official Statement. Inasmuch

as many of these factors, including economic and demographic factors, are complex and may influence the County’s tax base,

revenues, and expenditures, this Official Statement should be read in its entirety.

All quotations from and summaries and explanations of provisions of the Constitution and laws of the State and acts and

proceedings of the County contained herein do not purport to be complete and are qualified in their entirety by reference to the official

compilations thereof, and all references to the Notes and the proceedings of the County relating thereto are qualified in their entirety by

reference to the definitive forms of the Notes and such proceedings.

NATURE OF OBLIGATION

Each of the Notes when duly issued and paid for will constitute a contract between the County and the holder thereof.

Holders of any series of notes or bonds of the County may bring an action or commence a proceeding in accordance with the civil

practice law and rules to enforce the rights of the holders of such series of notes or bonds.

The Notes will be general obligations of the County and will contain a pledge of the faith and credit of the County for the payment

of the principal thereof and the interest thereon as required by the Constitution and laws of the State. For the payment of such

principal and interest, the County has power and statutory authorization to levy ad valorem taxes on all real property within the County

subject to such taxation by the County, subject to applicable statutory limitations.

Although the State Legislature is restricted by Article VIII, Section 12 of the State Constitution from imposing limitations on the

power to raise taxes to pay “interest on or principal of indebtedness theretofore contracted” prior to the effective date of any such

legislation, the New York State Legislature may from time to time impose additional limitations or requirements on the ability to

increase a real property tax levy or on the methodology, exclusions or other restrictions of various aspects of real property taxation (as

well as on the ability to issue new indebtedness). On June 24, 2011, Chapter 97 of the Laws of 2011 was signed into law by the

Governor (the “Tax Levy Limitation Law”). The Tax Levy Limitation Law applies to local governments and school districts in the

State (with certain exceptions) and imposes additional procedural requirements on the ability of municipalities and school districts to

levy certain year-to-year increases in real property taxes.

Under the Constitution of the State, the County is required to pledge its faith and credit for the payment of the principal of and

interest on the Notes and is required to raise real estate taxes, and without specification, other revenues, if such levy is necessary to

repay such indebtedness. While the Tax Levy Limitation Law imposes a statutory limitation on the County’s power to increase its

annual tax levy with the amount of such increase limited by the formulas set forth in the Tax Levy Limitation Law, it also provides the

procedural method to surmount that limitation. See “TAX LEVY LIMITATION LAW” herein.

The Constitutionally-mandated general obligation pledge of municipalities and school districts in New York State has been

interpreted by the Court of Appeals, the State’s highest court, in Flushing National Bank v. Municipal Assistance Corporation for the

City of New York, 40 N.Y.2d 731 (1976), as follows:

“A pledge of the city’s faith and credit is both a commitment to pay and a commitment of the city’s revenue

generating powers to produce the funds to pay. Hence, an obligation containing a pledge of the City’s “faith and

credit” is secured by a promise both to pay and to use in good faith the city’s general revenue powers to produce

sufficient funds to pay the principal and interest of the obligation as it becomes due. That is why both words, “faith”

and “credit” are used and they are not tautological. That is what the words say and this is what the courts have held

they mean…So, too, although the Legislature is given the duty to restrict municipalities in order to prevent abuses in

taxation, assessment, and in contracting of indebtedness, it may not constrict the City’s power to levy taxes on real

estate for the payment of interest on or principal of indebtedness previously contracted…While phrased in

permissive language, these provisions, when read together with the requirement of the pledge and faith and credit,

express a constitutional imperative: debt obligations must be paid, even if tax limits be exceeded”.

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In addition, the Court of Appeals in the Flushing National Bank (1976) case has held that the payment of debt service on

outstanding general obligation bonds and notes takes precedence over fiscal emergencies and the police power of political subdivisions

in New York State.

The pledge has generally been understood as a promise to levy property taxes without limitation as to rate or amount to the extent

necessary to cover debt service due to language in Article VIII Section 10 of the Constitution which provides an exclusion for debt

service from Constitutional limitations on the amount of a real property tax levy, insuring the availability of the levy of property tax

revenues to pay debt service. As the Flushing National Bank (1976) Court noted, the term “faith and credit” in its context is “not

qualified in any way”. Indeed, in Flushing National Bank v. Municipal Assistance Corp., 40 N.Y.2d 1088 (1977) the Court of Appeals

described the pledge as a direct constitutional mandate. In Quirk v. Municipal Assistance Corp., 41 N.Y.2d 644 (1977), the Court of

Appeals stated that, while holders of general obligation debt did not have a right to particular revenues such as sales tax, “with respect

to traditional real estate tax levies, the bondholders are constitutionally protected against an attempt by the State to deprive the city of

those revenues to meet its obligations.” According to the Court in Quirk, the State Constitution “requires the city to raise real estate

taxes, and without specification other revenues, if such a levy be necessary to repay indebtedness.”

In addition, the Constitution of the State requires that every county, city, town, village, and school district in the State provide

annually by appropriation for the payment of all interest and principal on its serial bonds and certain other obligations, and that, if at

any time the respective appropriating authorities shall fail to make such appropriation, a sufficient sum shall be set apart from the first

revenues thereafter received and shall be applied to such purposes. In the event that an appropriating authority were to make an

appropriation for debt service and then decline to expend it for that purpose, this provision would not apply. However, the

Constitution of the State does also provide that the fiscal officer of any county, city, town, village, or school district may be required to

set apart and apply such first revenues at the suit of any holder of any such obligations.

In Quirk v. Municipal Assistance Corp., the Court of Appeals described this as a “first lien” on revenues, but one that does not

give holders a right to any particular revenues. It should thus be noted that the pledge of the faith and credit of a political subdivision

in New York State is a pledge of an issuer of a general obligation bond or note to use its general revenue powers, including, but not

limited to, its property tax levy to pay debt service on such obligations, but that such pledge may not be interpreted by a court of

competent jurisdiction to include a constitutional or statutory lien upon any particular revenues.

While the courts in New York State have historically been protective of the rights of holders of general obligation debt of political

subdivisions, it is not possible to predict what a future court might hold.

DESCRIPTION OF THE NOTES

The Notes are general obligations of the County, and will contain a pledge of its faith and credit for the payment of the principal

of and interest on the Notes as required by the Constitution and laws of the State (State Constitution, Art. VIII, Section 2; Local

Finance Law, Section 100.00). All the taxable real property within the County is subject to the levy of ad valorem taxes to pay the

Notes and interest thereon, subject to applicable statutory limitations. See “NATURE OF OBLIGATION” and “TAX LEVY

LIMITATION LAW” herein.

The Notes are dated May 1, 2020 and will mature, without the option of prior redemption, on April 30, 2021.

The Notes will be issued in registered form at the option of the purchaser(s) either (i) requested in the name of the purchaser, in

denominations of $5,000 or integral multiples thereof as may be determined by the successful bidder(s); or (ii) registered in the name

of Cede & Co. as nominee of The Depository Trust Company, New York, New York ("DTC") which will act as the securities

depository for the Notes. See "BOOK-ENTRY-ONLY SYSTEM" herein.

PURPOSE OF ISSUE

The Notes are issued pursuant to the Constitution and statutes of the State including among others, the Local Finance Law and a

bond resolution to provide funds for the following purpose and in the following amount:

Purpose Authorization Date Amount

Construction of a New Highway Garage December 19, 2019 $ 16,000,000

The proceeds of the Notes will provide new monies for the abovementioned purpose.

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BOOK-ENTRY-ONLY SYSTEM

DTC will act as securities depository for the Notes, if so requested. The Notes will be issued as fully-registered securities

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.

DTC, the world’s largest 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, in turn, is owned by a number

of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing

Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also

subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National

Association of Securities Dealers, Inc. 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 or indirectly (“Indirect Participants”). 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 Notes under the DTC system must be made by or through Direct Participants, which will receive a credit for the

Notes on DTC’s records. The ownership interest of each actual purchaser of each Note (“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 Notes 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 Notes,

except in the event that use of the book-entry system for the Notes is discontinued.

To facilitate subsequent transfers, all Notes 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

Notes with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial

ownership. DTC has no knowledge of the actual Beneficial Owners of the Notes; DTC’s records reflect only the identity of the Direct

Participants to whose accounts such Notes 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.

Principal and interest payments on the Notes 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 in accordance with their respective

holdings 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 or the County, subject to any statutory or regulatory requirements as may

be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the County, 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 depository with respect to the Notes at any time by giving reasonable notice to the

County. Under such circumstances, in the event that a successor depository is not obtained, note certificates are required to be printed

and delivered. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the County

believes to be reliable, but the County takes no responsibility for the accuracy thereof.

Source: The Depository Trust Company.

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THE COUNTY CANNOT AND DOES NOT GIVE ANY ASSURANCES THAT DTC, DIRECT PARTICIPANTS OR

INDIRECT PARTICIPANTS OF DTC WILL DISTRIBUTE TO THE BENEFICIAL OWNERS OF THE NOTES (1) PAYMENTS

OF PRINCIPAL OF OR INTEREST ON THE NOTES; (2) CONFIRMATIONS OF THEIR OWNERSHIP INTERESTS IN THE

NOTES; OR (3) OTHER NOTICES SENT TO DTC OR CEDE & CO., ITS PARTNERSHIP NOMINEE, AS THE REGISTERED

OWNER OF THE NOTES, OR THAT THEY WILL DO SO ON A TIMELY BASIS, OR THAT DTC, DIRECT PARTICIPANTS

OR INDIRECT PARTICIPANTS WILL SERVE AND ACT IN THE MANNER DESCRIBED IN THIS OFFICIAL STATEMENT.

THE COUNTY WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO DTC, THE DIRECT PARTICIPANTS,

THE INDIRECT PARTICIPANTS OF DTC OR THE BENEFICIAL OWNERS WITH RESPECT TO (1) THE ACCURACY OF

ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC; (2)

THE PAYMENT BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC OF ANY AMOUNT

DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL AMOUNT OF OR INTEREST OR REDEMPTION

PREMIUM ON THE NOTES; (3) THE DELIVERY BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS

OF DTC OF ANY NOTICE TO ANY BENEFICIAL OWNER THAT IS REQUIRED OR PERMITTED TO BE GIVEN TO

OWNERS; OR (4) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS THE REGISTERED HOLDER OF THE

NOTES.

THE INFORMATION CONTAINED HEREIN CONCERNING DTC AND ITS BOOK-ENTRY SYSTEM HAS BEEN

OBTAINED FROM DTC AND THE COUNTY MAKES NO REPRESENTATION AS TO THE COMPLETENESS OR THE

ACCURACY OF SUCH INFORMATION OR AS TO THE ABSENCE OF MATERIAL ADVERSE CHANGES IN SUCH

INFORMATION SUBSEQUENT TO THE DATE HEREOF.

Certificated Notes

DTC may discontinue providing its services with respect to the Notes at any time by giving notice to the County and discharging

its responsibilities with respect thereto under applicable law, or the County may terminate its participation in the system of book-entry-

only system transfers through DTC at any time. In the event that such book-entry-only system is discontinued, the following

provisions will apply:

The Notes will be issued in bearer form in denominations of $5,000 or integral multiples thereof. Principal of and interest on the

Notes will be payable at a principal corporate trust office of a bank or trust company located and authorized to do business in the State

of New York to be named as fiscal agent by the County. The Notes will remain not subject to redemption prior to their stated final

maturity date.

THE COUNTY

General Information

The County is located in the geographical center of New York State. It is located between and approximately 20 miles from the

Cities of Syracuse and Utica and covers a land area of 661 square miles. The land development pattern of the County is agricultural

and rural in character with 34 percent of the land area used for farming and 40 percent representing forest land.

The County is served by State, County and local police, including State Police stations in Oneida and Morrisville, the County

Sheriff in Wampsville, and five local police stations in the City of Oneida, and in the Villages of Canastota, Chittenango, Cazenovia,

and Hamilton.

Of the 23 fire departments serving the County, the City of Oneida has the only career service, and the rest operate with volunteers.

All fire departments have communication links with the County Communication Center. There are also 13 ambulance services serving

the County.

There are two hospitals located within the County: Oneida Healthcare Center and Community Memorial Hospital in Hamilton.

The Central New York Region has additional medical facilities available, including five hospitals in Syracuse. These include

Community General Hospital, Crouse Hospital, St. Joseph's Hospital Health Center, Upstate University Hospital, Syracuse Veterans

Administration Medical Center, and Golisano Children’s Hospital.

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Transportation

The New York Thruway (I-90) affords east-west connections, and traverses the County with exits located in and around the

County. Interstate 81 is located in Syracuse and parallels the western side of the County, providing north-south connections including

a direct crossing into Canada. New York State Routes 5 and 20 also provide east-west access through the County.

A main line of CSX Corporation crosses the Northern Part of the County, and is used by both freight and passenger trains. There

are freight access points to the main line in the County. The Syracuse Hancock International Airport in Syracuse provides general

aviation and air carrier service. Major port facilities are located an hour away at the City of Oswego on Lake Ontario from which

ocean-going ships travel to all ports in the world through the St. Lawrence Seaway. The County is also served by several trucking

firms.

Economic Development

The County’s economy, on the local level, is largely unchanged from last year. The County’s unemployment rate remains at

historically low levels, making it difficult for manufacturers to find entry-level and low-skill employees. The same can be said for

highly-skilled talent, as the Unarmed Aerial Vehicle (UAV) industry continues to grow in the corridor between Rome and Syracuse.

The traditional manufacturing, high-tech manufacturing, and value-added agriculture sectors continue to increase their total output.

Enrollment at area colleges, such as Cazenovia College, Colgate University, and Morrisville State College remain steady.

There are several businesses with plans to locate or expand their operations within the County as follows:

• The City of Oneida has recently expanded and extended water and sewer infrastructure for the Elm Street Development

Business Park. The Business Park’s first tenant is Green Empire Farms, and they completed the first phase of construction of

1,400,000 sq. ft. of growing space under glass and lights, in addition to 200,000 sq. ft. of ancillary space. They are currently

growing strawberries for retailers throughout the northeastern United States. Green Empire Farms currently employs over

130 and they plan to hire approximately 50 additional employees by the end of 2020, once construction of phase II of the

greenhouse is completed (an additional 1,400,000 sq. ft. of greenhouse space). Controlled Environment Agriculture (CEA) is

a target industry for the County and the Central New York economic region.

• Dutchland Plastics, which moved into a new 50,000 sq. ft. facility in 2019, continues to expand their production and hire

additional employees. The company invested $2 million in capital equipment and to customize the new plant, and they now

employ over 70 full time employees.

• Northeast Information Discovery, Inc. is a software company focused on research and development of advanced computer

network operations and intelligence, surveillance, and reconnaissance capabilities for the Department of Defense, Homeland

Security, and other federal agencies. They have landed in excess of $50,000,000 in new federal contracts, and currently have

more than two dozen computer, software and cyber security engineer positions available.

• There have been major investments in both the public and private sector on renewable energy initiatives in Madison County.

The Fenner wind turbines have undergone a major upgrade to their turbines and blades, allowing them to capture up to 1.6

MgW per wind tower. Madison County has worked with a PPA to generate up to 2 MgW of power on a 10-acre parcel at the

Agriculture and Renewable Energy Business Park. This project is allowing Madison County to offset nearly $200,000 in

annual energy usage from this renewable resource. Additionally, a private developer is developing two 5 MgW solar arrays

outside of the Village of Canastota, which will be completed by year end 2020.

• In June 2019, the Dorothy G. Griffin Radiation Oncology Center was opened at the Oneida Healthcare Facility. This major

new investment will expand cancer services for patients, and will be a major driver of economic impact and specialized

services for people that require treatment using cutting edge technology.

• All Seasonings Ingredients, a spice processor and distributor, has commenced a 33,000 sq. ft. expansion of their facilities in

the City of Oneida. This value-added agriculture production facility is committed to invest $2,500,000 and hire an additional

10 new employees. The expansion should be completed in calendar year 2020.

Banking Facilities

The following banks maintain offices in the County:

Citizens Bank, N.A.

Community Bank, N.A.

JPMorgan Chase Bank

KeyBank, N.A.

M & T Bank

NBT Bank, N.A.

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Major Employers

Some of the larger employers in the County and the estimated number of persons employed by each are as follows:

Approximate Number

Employer Business of Employees

Colgate University Education 972

Oneida Health Care Hospital 895

Marquardt Switches Computer Chips 500

Briggs & Stratton Lawn Mowers 491

Wal-Mart Super Center 450

Morrisville State College Education 320

CPP (formerly ESCO) Ferrous Metal Castings 270

Cazenovia College Education 214

Madison Cortland ARC Manufacturing 225

HP Hood Dairy Products 236

Knowles Capacitors (formerly DLI) Manufacturing 180

Community Memorial Hospital/Crouse Hospital 158

Note: The Turning Stone Casino and Resort, an enterprise of the Oneida Indian Nation of New York, is located just outside the

County. The Casino commenced operation in 1993 and currently employs approximately 4,465 people.

Population Trends

U. S. Census 1960 ........................... 54,365

U. S. Census 1970 ........................... 62,864

U. S. Census 1980 ........................... 65,150

U. S. Census 1990 ........................... 69,120

U. S. Census 2000 ........................... 69,441

U. S. Census 2010 ........................... 73,442

U. S. Census 2018 ........................... 70,795

Source: U.S. Census Bureau.

Selected Wealth and Income Indicators

Per capita income statistics are available for the County and State. Listed below are select figures from the 2000 Census Reports,

the 2006-2010 and 2014-2018 American Community Survey 5-Year Estimates.

Per Capita Income Median Family Income

2000 2006-2010 2014-2018 2000 2006-2010 2014-2018

County of:

Madison $ 19,105 $ 24,311 $ 28,925 $ 47,889 $ 61,828 $ 73,102

State of:

New York 23,389 30,948 37,470 51,691 67,405 80,419

Source: U.S. Census Bureau, 2000 census, 2006-2010 and 2014-2018 American Community Survey data.

Note: 2015-2019 American Community Survey estimates are not available as of the date of this Official Statement.

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Unemployment Rate Statistics

Annual Average

2012 2013 2014 2015 2016 2017 2018 2019

Madison County 8.5% 7.6% 6.4% 5.7% 5.3% 5.5% 4.8% 4.5%

New York State 8.5% 7.7% 6.3% 5.3% 4.9% 4.7% 4.1% 4.0%

2020 Monthly Figures

Jan Feb Mar Apr

Madison County 5.5% 5.2% N/A N/A

New York State 4.1% 3.9% N/A N/A

Source: Department of Labor, State of New York. (Note: Figures not seasonally adjusted).

Note: The unemployment rates for March and April 2020 are unavailable as of the date of this Official Statement.

Form of County Government

Government of the County is the responsibility of a 19-member Board of Supervisors, elected by the residents of each of the

towns within the County, with four members elected by residents of the City of Oneida. One member is selected as Chairman by the

members themselves. Supervisors are elected to two-year terms, with the exception of Supervisors of the Towns of Cazenovia, Eaton,

Lenox, Madison and Sullivan, who serve four-year terms. The County Treasurer is the chief fiscal officer and is elected at large.

Budgetary Procedures

The Board of Supervisors adopts a budget each year, based on recommendations by the Department heads. After holding a public

hearing, said budget is officially adopted by the Board of Supervisors. The Budget is not subject to referendum. Expenditures during

the fiscal year may only be made pursuant to appropriations from the General Fund and other special purpose funds established by the

County. However, the Board of Supervisors, on the recommendation of the Budget Officer, during the fiscal year may by resolution

make additional appropriations from any unencumbered balance in appropriations, contingent funds or unanticipated revenues and, to

a limited extent, by the issuance of budget notes.

Investment Policy

Pursuant to the statutes of the State of New York, the County is permitted to invest only in the following investments: (1) special

time deposits or certificates of deposits in a bank or trust company located and authorized to do business in the State of New York; (2)

obligations of the United States of America; (3) obligations guaranteed by agencies of the United States of America where the payment

of principal and interest is guaranteed by the United States of America; (4) obligations of the State of New York; (5) with the approval

of the New York State Comptroller, tax anticipation notes and revenue anticipation notes issued by any New York municipality or

district corporation, other than the County; (6) obligations of a New York public corporation which are made lawful investments by

the County pursuant to another provision of law; (7) certain certificates of participation issued on behalf of political subdivisions of the

State of New York; and, (8) in the case of County moneys held in certain reserve funds established pursuant to law, obligations issued

by the County. These statutes further require that all bank deposits, in excess of the amount insured under the Federal Deposit

Insurance Act, be secured by either a pledge of eligible securities, an eligible surety bond or an eligible letter of credit, as those terms

are defined in the law.

Consistent with the above statutory limitations, it is the County's current policy to invest in: (1) certificates of deposit or time

deposit accounts that are fully secured as required by statute, (2) obligations of the United States of America or (3) obligations

guaranteed by agencies of the United States of America where the payment of principal and interest is guaranteed by the United States

of America, or for obligation of the State of New York or its municipal subdivisions. In the case of obligations of the United States

government, the County may also purchase such obligations pursuant to a written repurchase agreement that requires the purchased

securities to be delivered to a third party custodian bank or trust company.

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State Aid

The County receives financial assistance from the State. In its budget for the 2020 fiscal year, approximately 15.5% of the

revenues of the County are estimated to be received in the form of State aid. If the State should experience difficulty in borrowing

funds in anticipation of the receipt of State taxes in order to pay State aid to municipalities and school districts in the State, including

the County, in this year or future years, the County may be affected by a delay in the receipt of State aid until sufficient State taxes

have been received by the State to make State aid payments. Additionally, if the State should not adopt its budget in a timely manner,

municipalities and school districts in the State, including the County, may be affected by a delay in the payment of State aid.

The State is not constitutionally obligated to maintain or continue State aid to the County. No assurance can be given that present

State aid levels will be maintained in the future. State budgetary restrictions which eliminate or substantially reduce State aid could

have a material adverse effect upon the County requiring either a counterbalancing increase in revenues from other sources to the

extent available, or a curtailment of expenditures.

The County may receive additional, considerable State Aid relative to the Point Place Casino that is operating in Bridgeport. There

was no movement in regard to receiving host community benefit revenue for the Point Place Casino at the last State’s legislative

session. The County will continue working to request this be included in the State’s 2020-2021 budget.

Employees

The County provides services through approximately 550 full time and 130 part time employees. The bargaining units,

approximate number of members and contract expiration dates are as follows:

Contract

Bargaining Unit Number of Members Expiration Date

C.S.E.A. (White Collar) 261 December 31, 2022

C.S.E.A. (Blue Collar) 106 December 31, 2024

NYS Nurses Association 10 January 1, 2022

Madison County Deputy Sheriff PBA 40 December 31, 2019 (1)

Teamsters Local 182 58 December 31, 2022

(1) The Madison County Police Benevolent Association has recently undergone unanticipated changes that have left this group in a

state of redirection. This, coupled with the current pandemic (COVID-19), has created the need to delay collective bargaining

activities for an undetermined period of time.

Pension Payments

Substantially all employees of the County are members of the New York State and Local Employees’ Retirement System (“ERS”)

(the “Retirement System”). The ERS is generally also known as the “Common Retirement Fund”. The Retirement System is a cost-

sharing multiple public employer retirement system. The obligation of employers and employees to contribute and the benefit to

employees are governed by the New York State Retirement System and Social Security Law (the “Retirement System Law”). The

Retirement System offers a wide range of plans and benefits which are related to years of service and final average salary, vesting of

retirement benefits, death and disability benefits and optional methods of benefit payments. All benefits generally vest after five years

of credited service. The Retirement System Law generally provides that all participating employers in each retirement system are

jointly and severally liable for any unfunded amounts. Such amounts are collected through annual billings to all participating

employers. Generally, all employees, except certain part-time employees, participate in the Retirement Systems.

The ERS is non-contributory with respect to members hired prior to July 27, 1976 (Tier 1 & 2); members hired from July 27, 1976

through December 31, 2009 (Tier 3 & 4) contribute 3% for the first 10 years of service and then become non-contributory; members

hired from January 1, 2010 through March 31, 2012 (Tier 5) must contribute 3% for their entire careers; members hired April 1, 2012

(Tier 6) or after will contribute between 3 and 6 percent for their entire careers based on their annual wage.

For ERS, Tier 5 provides for:

• Raising the minimum age at which most civilians can retire without penalty from 55 to 62 and imposing a penalty of

up to 38% for any civilian who retires prior to age 62

• Requiring employees to continue contributing 3% of their salaries toward pension costs so long as they accumulate

additional pension credits.

• Increasing the minimum years of service required to draw pension form 5 years to 10 years.

• Capping the amount of overtime that can be considered in the calculation of pension benefits for civilians at $15,000

per year, and for police & firefighters at 15% of non-overtime wages.

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For ERS, Tier 6 provides for:

• Increase contribution rates of between 3% and 6% base on annual wage

• Increase in the retirement age from 62 years to 63 years

• A readjustment of the pension multiplier

• A change in the period for final average salary calculation from 3 years to 5 years

The County’s contributions to ERS since 2013 and the 2020 budgeted contribution are as follows:

Year Amount

2013 $ 4,643,228

2014 4,818,101

2015 4,257,191

2016 3,935,905

2017 4,282,954

2018 4,112,462

2019 (Unaudited) 4,243,584

2020 (Budgeted) 4,470,393

Pursuant to various laws enacted between 1991 and 2002, the State Legislature authorized local governments to make available

certain early retirement incentive programs to its employees. The County does not have any early retirement incentives outstanding.

Historical Trends and Contribution Rates: Historically there has been a State mandate requiring full (100%) funding of the annual

actuarially required local governmental contribution out of current budgetary appropriations. With the strong performance of the

Retirement System in the 1990s, the locally required annual contribution declined to zero. However, with the subsequent decline in

the equity markets, the pension system became underfunded. As a result, required contributions increased substantially to 15% to 20%

of payroll for the employees’ and the police and fire retirement systems, respectively. Wide swings in the contribution rate resulted in

budgetary planning problems for many participating local governments.

A chart of average ERS rates (2016 to 2020) is shown below:

Year ERS

2016 18.2%

2017 15.5

2018 15.3

2019 14.9

2020 14.6

Chapter 49 of the Laws of 2003 amended the Retirement and Social Security Law and Local Finance Law. The amendments

empowered the State Comptroller to implement a comprehensive structural reform program that establishes a minimum contribution

for any employer equal to 4.5% of pensionable salaries for required contributions due December 15, 2003 and for all years thereafter

where the actual rate would otherwise be 4.5% or less. In addition, it instituted a billing system that will advise employers over one

year in advance concerning actual pension contribution rates.

Chapter 57 of the Laws of 2010 (Part TT) amended the Retirement and Social Security Law to authorize participating local

government employers, if they so elect, to amortize an eligible portion of their annual required contributions to both ERS and PFRS,

when employer contribution rates rise above certain levels. The option to amortize the eligible portion began with the annual

contribution due February 1, 2011. The amortizable portion of an annual required contribution is based on a “graded” rate by the State

Comptroller in accordance with formulas provided in Chapter 57. Amortized contributions are to be paid in equal annual installments

over a ten-year period, but may be prepaid at any time. Interest is to be charged on the unpaid amortized portion at a rate to be

determined by State Comptroller, which approximates a market rate of return on taxable fixed rate securities of a comparable duration

issued by comparable issuers. The interest rate is established annually for that year’s amortized amount and then applies to the entire

ten years of the amortization cycle of that amount. When in any fiscal year, the participating employer’s graded payment eliminates all

balances owed on prior amortized amounts, any remaining graded payments are to be paid into an employer contribution reserve fund

established by the State Comptroller for the employer, to the extent that amortizing employer has no currently unpaid prior amortized

amounts, for future such use.

Stable Rate Pension Contribution Option: The 2013-14 Adopted State Budget included a provision that authorized local

governments, including the County, with the option to “lock-in” long-term, stable rate pension contributions for a period of years

determined by the State Comptroller and ERS and PFRS. For 2014 and 2015 the rate is 12.0% for ERS and 20% for PFRS; the rates

applicable to 2016 and thereafter are subject to adjustment. The pension contribution rates under this program would reduce near-term

payments for employers, but require higher than normal contributions in later years.

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The County is not amortizing or smoothing any pension payments, nor does it intend to do so in the foreseeable future.

The investment of monies and assumptions underlying same, of the Retirement Systems covering the County’s employees is not

subject to the direction of the County. Thus, it is not possible to predict, control or prepare for future unfunded accrued actuarial

liabilities of the Retirement Systems (“UAALs”). The UAAL is the difference between total actuarially accrued liabilities and

actuarially calculated assets available for the payment of such benefits. The UAAL is based on assumptions as to retirement age,

mortality, projected salary increases attributed to inflation, across-the-board raises and merit raises, increases in retirement benefits,

cost-of-living adjustments, valuation of current assets, investment return and other matters. Such UAALs could be substantial in the

future, requiring significantly increased contributions from the County which could affect other budgetary matters. Concerned

investors should contact the Retirement Systems administrative staff for further information on the latest actuarial valuations of the

Retirement Systems.

Other Post-Employment Benefits

It should also be noted that the County provides post-retirement healthcare benefits to various categories of former employees.

These costs may be expected to rise substantially in the future. There is now an accounting rule that requires governmental entities,

such as the County, to account for post-retirement healthcare benefits as it accounts for vested pension benefits. GASB Statement No.

45 ("GASB 45") of the Governmental Accounting Standards Board ("GASB"), described below, requires such accounting.

In June 2015, the GASB issued GASB Statement 75 (“GASB 75”), which, when implemented, will supersede and eliminate

GASB 45. GASB 75 establishes new standards for recognizing and measuring OPEB liabilities, deferred outflows of resources,

deferred inflows of resources, and expense/expenditures. Municipalities and school districts are required to account for OPEB within

the financial statements rather than only noted in the footnotes as previously required by GASB 45. GASB 75 is required to be

implemented by all municipalities and school districts in the fiscal year beginning after June 15, 2017. Actuarial valuation will be

required every two years for GASB 75.

GASB 45 and OPEB. OPEB refers to "other post-employment benefits," meaning other than pension benefits, disability benefits

and OPEB consist primarily of health care benefits, and may include other benefits such as disability benefits and life insurance. Until

now, these benefits have generally been administered on a pay-as-you-go basis and have not been reported as a liability on

governmental financial statements.

GASB 45 requires municipalities and school districts to account for OPEB liabilities much like they already account for pension

liabilities, generally adopting the actuarial methodologies used for pensions, with adjustments for the different characteristics of OPEB

and the fact that most municipalities and school districts have not set aside any funds against this liability. Unlike GASB 27, which

covers accounting for pensions, GASB 45 does not require municipalities or school districts to report a net OPEB obligation at the

start.

Under GASB 45, based on actuarial valuation, an annual required contribution ("ARC") will be determined for each municipality

or school district. The ARC is the sum of (a) the normal cost for the year (the present value of future benefits being earned by current

employees) plus (b) amortization of the unfunded accrued liability (benefits already earned by current and former employees but not

yet provided for), using an amortization period of not more than 30 years. If a municipality or school district contributes an amount

less than the ARC, a net OPEB obligation will result, which is required to be recorded as a liability on its financial statements.

GASB 45 does not require that the unfunded liability actually be amortized nor that it be advance funded, only that the

municipality or school district account for its unfunded accrued liability and compliance in meeting its ARC. The County is not

certain that municipalities will be mandated to implement GASB 45 since the potential liability will have to be determined by an

actuarial and will be astronomical with the potential of bankrupting municipalities.

THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK

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The County has contracted with an actuarial firm to prepare its post-retirement benefits valuation commencing with the fiscal

year ending December 31, 2018 in accordance with GASB 75. The following outlines the changes to the Total OPEB Liability during

the 2018 and 2019 fiscal years, by source.

2018 2019

Balance at Beginning of Fiscal Year: $ 73,028,781 $ 83,258,652

Changes for the year:

Service cost $ 3,141,041 $ 3,688,319

Interest 2,861,000 2,839,452

Changes of Benefits Terms 0 0

Differences between expected and actual experience 0 0

Changes in assumptions or other inputs 6,382,678 (9,271,193)

Benefit payments (2,154,868) (2,325,821)

Net Changes 10,229,851 (5,069,243)

Balance at End of Fiscal Year: $ 83,258,652 $ 78,189,409

Source: 2018 audited financial statements and 2019 actuarial valuation of the County. The above tables are not audited.

There is no authority in current State law to establish a trust account or reserve fund for this liability. The County has reserved $0

towards its OPEB liability. The County funds this liability on a pay-as-you-go basis.

The County’s unfunded actuarial accrued OPEB liability could have a material adverse impact upon the County’s finances and

could force the County to reduce services, raise taxes or both.

Under GASB 75, an actuarial valuation will be required every 2 years for all plans, however, the Alternative Measurement

Method continues to be available for plans with less than 100 members.

In April 2015, the State Comptroller announced legislation to create an optional investment pool to help the State and local

governments fund retiree health insurance and other post-employment benefits. The proposed legislation would allow the following:

• Authorize the creation of irrevocable OPEB trusts, not part of the New York State Common Retirement Fund, so that New

York state and its local governments can, at their option, help fund their OPEB liabilities;

• Establish an OPEB investment fund in the sole custody of the State Comptroller for the investment of OPEB assets of the

state and participating eligible local governments;

• Designate the president of the Civil Service Commission as the trustee of the state’s OPEB trust and the governing boards as

trustee for local governments; and

• Allow school districts to transfer certain excess reserve balances to an OPEB trust once it is established.

Under the State Comptroller’s proposal, there are no restrictions on the amount a government can deposit into the trust. While it

was not enacted into law in recent legislative sessions, it is not possible to predict whether the Comptroller’s proposed legislation will

be reintroduced and enacted into law in the future.

Other Information

The statutory authority for the power to spend money for the objects or purposes, or to accomplish the objects or purposes for

which obligations are issued, is the County Law and the Local Finance Law.

The County is in compliance with the procedure for the validation of the Notes as provided in Title 6 of Article 2 of the Local

Finance Law.

No principal or interest upon any obligation of this County is past due.

The fiscal year of the County is the calendar year.

This Official Statement does not include the financial data of any political subdivision having power to levy taxes within the

County.

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Financial Statements

The County retains independent public accountants to audit its finances. The audited financial statements for the fiscal year ended

December 31, 2018 are attached to this Official Statement as “APPENDIX – C”. The County’s 2019 unaudited annual update

document as filed with the State Comptroller’s Office is expected to be completed on or about April 24, 2020. The County’s 2019

audited financial statement are expected to be available on or about August 31, 2020.

Certain financial information regarding the County may be found in the Appendices to this Official Statement. The financial

affairs of the County are also subject to periodic compliance audit by the State Comptroller.

The County complies with the Uniform System of Accounts as prescribed for Counties in New York State. Except for the

accounting for fixed assets, this system conforms to generally accepted accounting principles as prescribed by the American Institute

of Certified Public Accountants' Industry Audit Guide, "Audits of State and Local Governmental Units", and codified in government

Accounting, Auditing and Financial Reporting (GAAFR), published by the Governmental Accounting Standards Board (GASB).

Changes to the Uniform System of Accounts as prescribed for counties have been made by the State Comptroller in order to

conform the Uniform System of Accounts to certain of these principles. These changes require the County to maintain a record of

fixed assets to be recorded at cost or at estimated historical cost.

Beginning with the fiscal year ending December 31, 2003 the County issued its financial statements in accordance with GASB

Statement No. 34. This statement includes reporting of all assets including infrastructure and depreciation in the Government Wide

Statement of Activities, as well as the Management’s Discussion and Analysis. The County is in compliance with Statement No. 34.

New York State Comptroller Report of Examination

The State Comptroller's office, i.e., the Department of Audit and Control, periodically performs a compliance review to ascertain

whether the County has complied with the requirements of various State and Federal statutes. These audits can be found by visiting

the Audits of Local Governments section of the Office of the State Comptroller website.

The State Comptroller’s Office released an audit report of the County on January 17, 2020. The purpose of the audit was to

determine whether internal controls over the claims audit and payment process were adequately designed and operating effectively for

the period January 1, 2017 through September 30, 2018.

Key Findings:

• The Board of Supervisors (Board) and the Board of Health (BOH) did not audit their respective claims before payment.

• The State Comptroller’s review of 382 claims totaling $3.5 million disclosed that 121 claims totaling $752,749 lacked

adequate support or documentation showing receipt of goods or services. In addition, claims totaling $1.3 million were paid

without Board approval.

• The Treasurer did not control the check signing process for computer generated checks and allowed a credit card vendor to

directly withdraw $1.9 million in monthly payments from a County bank account.

Key Recommendations:

• Ensure all claims are audited and approved prior to payment when required by law.

• Ensure all claims contain sufficient detail and supporting documentation prior to approval.

• Ensure the Treasurer controls her signature when it is applied to checks.

• Discontinue allowing the credit card vendor to directly withdraw funds from County bank accounts.

The County provided a complete response to the State Comptroller’s office on December 20, 2019. A copy of the complete report

and response can be found via the website of the Office of the New York State Comptroller.

The Office of the State Comptroller is currently conducting an audit of the County relative to the County’s lease of property

during the construction phase of the Courthouse Renovation.

There are no other Office of the State Comptroller audits that are currently in progress or pending release.

Source: Website of the Office of the New York State Comptroller.

Note: Reference to websites implies no warranty of accuracy of information therein.

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The State Comptroller’s Fiscal Stress Monitoring System

The New York State Comptroller has reported that New York State’s school districts and municipalities are facing significant

fiscal challenges. As a result, the Office of the State Comptroller has developed a Fiscal Stress Monitoring System (“FSMS”) to

provide independent, objectively measured and quantifiable information to school district and municipal officials, taxpayers and policy

makers regarding the various levels of fiscal stress under which the State’s school districts and municipalities are operating.

The fiscal stress scores are based on financial information submitted as part of each school district’s ST-3 report filed with the

State Education Department annually, and each municipality’s annual report filed with the State Comptroller. Using financial

indicators that include year-end fund balance, cash position and patterns of operating deficits, the system creates an overall fiscal stress

score which classifies whether a school district or municipality is in “significant fiscal stress”, in “moderate fiscal stress,” as

“susceptible to fiscal stress” or “no designation”. Entities that do not accumulate the number of points that would place them in a

stress category will receive a financial score but will be classified in a category of “no designation.” This classification should not be

interpreted to imply that the entity is completely free of fiscal stress conditions. Rather, the entity’s financial information, when

objectively scored according to the FSMS criteria, did not generate sufficient points to place them in one of the three established stress

categories.

The reports of the State Comptroller for the past five years for the County are as follows:

Fiscal Year Ending In Stress Designation Fiscal Score

2018

2017

No Designation

No Designation

3.3

3.3

2016

2015

Not Filed (1)

Not Filed (1)

-

-

2014 No Designation 12.9

Source: Website of the Office of the New York State Comptroller.

(1) The County’s 2015 and 2016 Annual Update Documents were not filed in time due to a conversion to a new financial

management system and corresponding technical difficulties that had to be rectified by the software vendor before the financials

were finalized.

Note: Reference to website implies no warranty of accuracy of information therein.

TAX INFORMATION

Valuations

Years Ending December 31: 2016 2017 2018 2019 2020

Assessed Valuation $ 3,877,203,006 $ 3,932,543,134 $ 3,960,477,434 $ 4,007,271,331 $ 4,025,719,960

New York State

Equalization Rate 97.04% 97.43% 96.96% 96.21% 92.79%

Full Valuation $ 3,995,431,236 $ 4,036,106,582 $ 4,082,856,479 $ 4,163,785,044 $ 4,338,492,056

Tax Rate Per M (Assessed)

Years Ending December 31: 2016 2017 2018 2019 2020

$ 9.07 $ 9.16 $ 9.25 $ 9.10 $ 9.15

Tax Collection Record

2016 2017 2018 2019 2020

Total Tax Levy (1) $ 57,562,273 $ 58,869,517 $ 59,463,193 $ 60,494,462 $ 63,045,669

Uncollected December 31 2,315,483 2,041,892 2,079,828 2,127,295 N/A

% Uncollected 4.0% 3.5% 3.5% 3.5% N/A

(1) Includes Town, County, Special Districts and relevied Central School and Village taxes.

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Tax Collection Procedure

The County guarantees the real property tax levies of the towns, villages and school districts (except school district taxes on

property located within the City of Oneida) located within the County.

Real property is assessed for taxation by local assessors in each Town and the City of Oneida and is placed on the respective tax

rolls.

Each town tax receiver is required to pay to the respective town the full amount levied for town and town special district purposes.

The balance of collected taxes is remitted to the County Treasurer. After April 30, uncollected taxes relating to property located

outside the City of Oneida, become the responsibility of the County Treasurer. The City of Oneida retains responsibility for collecting

County delinquent taxes. The collection of County taxes levied on properties within the City of Oneida is enforced by the City, and

the County receives the full amount of such taxes from the City within the year of the levy. The various Villages collect taxes

commencing June 1 of each year and return the uncollected portion to the County Treasurer in October. In the following January, the

uncollected portion, plus appropriate penalties, become part of the County taxes. The various Schools collect taxes commencing

August 31 of each year and return the uncollected portion to the County Treasurer in November. In the following January, the

uncollected portion, plus appropriate penalties, become part of the County taxes.

Sales Tax

The County imposed a 3% sales tax outside the City of Oneida and 1 ½% sales tax within the City of Oneida through May 31,

2004. Beginning June 1, 2004 the County imposed a 4% sales tax outside of the City of Oneida and a 2% sales tax within the City of

Oneida. In accordance with Section 1262 of the Tax Law, the County shares 50% of its sales tax collection outside of the City of

Oneida with the Towns and Villages.

General Fund Sales Tax Revenue (Net) History:

Fiscal Year Amount

2012 .............................. $ 13,774,416

2013 .............................. 14,597,493

2014 .............................. 15,092,224

2015 ............................. 14,911,826

2016 ............................. 15,166,917

2017 .............................. 16,958,770

2018 .............................. 16,776,121

2019 .............................. 17,856,066

2020 (Budgeted) ............ 17,172,414 (1)

(1) Due to the closure of non-essential businesses under Governor Cuomo’s Executive Order 202.6 the amount of sales tax to be

received in 2020 may be lower than what is budgeted for 2020. Due to the unique circumstances and the unknown length of the

business closure it is unknown at this time what the impact may be to the sales tax revenues. See also “MARKET AND RISK

FACTORS” herein.

As part of the State’s 2019-2020 budget, an internet sales tax was authorized and has recently been implemented. In addition, Aid

and Incentives to Municipalities (“AIM”), which was originally scheduled to be cut by approximately $60 million, was restored by

requiring counties to finance the amount needed to fully fund their towns and villages. New York State withheld $225,495 from a

December 2019 sales tax distribution to fund AIM for the county’s towns. The County expects the State to withhold $130,379 from a

May 2020 sales tax distribution in order to fund AIM for the county’s villages.

The County imposes a mortgage recording tax that is distributed to the towns, villages and city within the County. New York

State recently approved the County’s request to impose an additional mortgage recording tax of $0.25 per hundred that the County

would keep. The County began imposing this mortgage recording tax in February 2020.

The County currently imposes a landline surcharge of $0.35 per month and a wireless surcharge of $0.30 per month to help pay

the costs of operating and maintaining the County’s E-911 communications system. New York State recently approved the County’s

request to increase these surcharges. The County expects to begin collecting landline surcharges of $1.00 per month, and wireless

surcharges of $0.95 per month, beginning in the second quarter of 2020.

It is anticipated that once the County collects the mortgage recording tax and the additional surcharges for a full year, the result

will be an increase in revenue of approximately $1,000,000.

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Larger Taxpayers – 2019 Assessment Roll for 2020

Estimated

Name Type Full Valuation

Niagara Mohawk (National Grid) Utility $ 93,161,327

Dominion Resources Service Inc Utility 51,159,834

Tennessee Gas Pipeline Co. Utility 25,614,642

Airtricity Windmills 20,053,000

Munnsville Wind Farm LLC Windmills 18,000,000

NYSEG Utility 14,207,253

HP Hood Dairy Manufacturer 14,021,800

M. Burton Marshall Business Owner 13,148,650

Colgate University College 10,919,000

Walmart Box Store 10,420,000

The ten larger taxpayers, listed above, have a total estimated full valuation of $270,705,506, which represents 6.24% of the

County’s tax base.

As of the date of this Official Statement, there are no tax certioraris that are known or believed to have a material impact on the

County.

Constitutional Tax Margin

Computation of Constitutional Tax Margin for fiscal years ending December 31:

2017 2018

Five-Year Average Full Valuation ......................................................................... $ 3,955,112,619 $ 3,993,837,065

Tax Limit - (2.0%) ................................................................................................. 79,102,452 79,876,741

Add: Exclusions from Limit .......................................................................... 2,233,181 2,242,736

Total Taxing Power ........................................................................................ 81,335,633 82,119,477

Less: Total Levy ............................................................................................ 34,125,630 34,879,588

Tax Margin ............................................................................................................ $ 47,210,003 $ 47,239,889

2019 2020

Five-Year Average Full Valuation ......................................................................... $ 4,039,891,352 $ 4,004,075,968

Tax Limit - (2.0%) ................................................................................................. 80,797,827 80,081,519

Add: Exclusions from Limit .......................................................................... 2,467,814 2,086,881

Total Taxing Power ........................................................................................ 83,265,641 82,168,400

Less: Total Levy ............................................................................................ 35,050,980 36,848,480

Tax Margin ............................................................................................................ $ 48,214,661 $ 45,319,920

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TAX LEVY LIMITATION LAW

On June 24, 2011, Chapter 97 of the Laws of 2011 was signed into law by the Governor (the “Tax Levy Limitation Law”). The

Tax Levy Limitation Law applies to virtually all local governments, including school districts (with the exception of New York City,

Yonkers, Syracuse, Rochester and Buffalo, the latter four of which are indirectly affected by applicability to their respective city). It

also applies to independent special districts and to town and county improvement districts as part of their parent municipalities tax

levies.

Chapter 97 of the Laws of 2011, as amended (the “Tax Levy Limitation Law”) applies to virtually all local governments,

including school districts (with the exception of New York City, Yonkers, Syracuse, Rochester and Buffalo, the latter four of which

are indirectly affected by applicability to their respective city). It also applies to independent special districts and to town and county

improvement districts as part of their parent municipalities tax levies.

The Tax Levy Limitation Law restricts, among other things, the amount of real property taxes (including assessments of certain

special improvement districts) that may be levied by or on behalf of a municipality in a particular year, beginning with fiscal years

commencing on or after January 1, 2012. It was to expire on June 15, 2020; recent legislation has made it permanent. Pursuant to the

Tax Levy Limitation Law, the tax levy of a municipality cannot increase by more than the lesser of (i) two percent (2%) or (ii) the

annual increase in the consumer price index ("CPI"), over the amount of the prior year’s tax levy. Certain adjustments would be

permitted for taxable real property full valuation increases due to changes in physical or quantity growth in the real property base as

defined in Section 1220 of the Real Property Tax Law. A municipality may exceed the tax levy limitation for the coming fiscal year

only if the governing body of such municipality first enacts, by at least a sixty percent vote of the total voting strength of the board, a

local law (resolution in the case of fire districts and certain special districts) to override such limitation for such coming fiscal year

only. There are exceptions to the tax levy limitation provided in the Tax Levy Limitation Law, including expenditures made on

account of certain tort settlements and certain increases in the average actuarial contribution rates of the New York State and Local

Employees’ Retirement System, the Police and Fire Retirement System. Municipalities are also permitted to carry forward a certain

portion of their unused levy limitation from a prior year. Each municipality prior to adoption of each fiscal year budget must submit

for review to the State Comptroller any information that is necessary in the calculation of its tax levy for each fiscal year.

The Tax Levy Limitation Law does not contain an exception from the levy limitation for the payment of debt service on either

outstanding general obligation debt of municipalities or such debt incurred after the effective date of the Tax Levy Limitation Law

(June 24, 2011).

While the Tax Levy Limitation Law may constrict an issuer’s power to levy real property taxes for the payment of debt service on

debt contracted after the effective date of said Tax Levy Limitation Law, it is clear that no statute is able (1) to limit an issuer’s pledge

of its faith and credit to the payment of any of its general obligation indebtedness or (2) to limit an issuer’s levy of real property taxes

to pay debt service on general obligation debt contracted prior to the effective date of the Tax Levy Limitation Law. Whether the

Constitution grants a municipality authority to treat debt service payments as a constitutional exception to such statutory tax levy

limitation outside of any statutorily determined tax levy amount is not clear.

The County voted to exceed the Tax Levy Limit for the 2015, 2016 and 2017 fiscal years. For 2017, the County’s tax cap

percentage was 1.05%, and the actual increase in the tax levy was 2.16%. The County initially voted to exceed the Tax Levy Limit in

2018 and 2019, but later rescinded the increase. For 2018, the County’s tax cap percentage was 2.22%, and the actual increase was

2.21%. For 2019, the County’s tax cap percentage was 2.68%, and the actual increase was 0.49%. For 2020, the County’s tax cap

percentage was 5.14%, and the actual increase was 5.13%.

Real Property Tax Rebate. Chapter 59 of the Laws of 2014 (“Chapter 59”), included provisions which provided a refundable

personal income tax credit to real property taxpayers in school districts and certain municipal units of government. Real property

owners in school districts were eligible for this credit in the 2014 and 2015 taxable years of those property owners. Real property

taxpayers in certain other municipal units of government were eligible for this credit in the 2015 and 2016 taxable years of those real

property taxpayers. The eligibility of real property taxpayers for the tax credit in each year depends on such jurisdiction’s compliance

with the provisions of the Tax Levy Limitation Law. School districts budgets were required to comply in their 2014-2015 and 2015-

2016 fiscal years. Other municipal units of government were required to have their budgets in compliance for their 2015 and 2016

fiscal years. Such budgets were required to be within the tax cap limits set by the Tax Levy Limitation Law for the real property

taxpayers to be eligible for this personal income tax credit. The affected jurisdictions included counties, cities (other than any city with

a population of one million or more and its counties), towns, villages, school districts (other than the dependent school districts of New

York City, Buffalo, Rochester, Syracuse and Yonkers, the latter four of which are indirectly affected by applicability to their respective

city) and independent special districts.

Certain additional restrictions on the amount of the personal income tax credit were set forth in Chapter 59 in order for the tax cap

to qualify as one which will provide the tax credit benefit to such real property taxpayers. The refundable personal income tax credit

amount is increased in the second year if compliance occurs in both taxable years.

For the second taxable year of the program, the refundable personal income tax credit for real property taxpayers was additionally

contingent upon adoption by the school district or municipal unit of a state approved “government efficiency plan” which demonstrates

“three year savings and efficiencies of at least one per cent per year from shared services, cooperation agreements and/or mergers or

efficiencies”.

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Municipalities, school districts and independent special districts were required to provide certification of compliance with the

requirements of the new provisions to certain state officials in order to render their real property taxpayers eligible for the personal

income tax credit.

While the provisions of Chapter 59 did not directly further restrict the taxing power of the affected municipalities, school districts

and special districts, they do provide an incentive for such tax levies to remain within the tax cap limits established by the Tax Levy

Limitation Law. The implications of this for future tax levies and for operations and services of the County are uncertain at this time.

STATUS OF INDEBTEDNESS

Constitutional Requirements

The New York State Constitution limits the power of the County (and other municipalities and certain school districts of the State)

to issue obligations and to otherwise contract indebtedness. Such constitutional limitations in summary form, and as generally

applicable to the County and its indebtedness (including the Notes), include the following provisions:

Purpose and Pledge. Subject to certain enumerated exceptions, the County shall not give or loan any money or property to or in

aid of any individual, private corporation or private undertaking or give or loan its credit to or in aid of any foreign or public

corporation. The County may contract indebtedness only for a County purpose and shall pledge its faith and credit for the payment of

the principal of any interest thereon.

Payment and Maturity. Except for certain short-term indebtedness contracted in anticipation of taxes or to be paid within three

fiscal year periods, indebtedness shall be paid in annual installments commencing no later than two years after the date such

indebtedness shall have been contracted and ending no later than the expiration of the period of probable usefulness of the object or

purpose as determined by statute; no installment may be more than fifty per centum in excess of the smallest prior installment, unless

substantially level or declining debt service is utilized. The County is required to provide an annual appropriation for the payment of

interest due during the year on its indebtedness and for the amounts required in such year for amortization and redemption of its serial

and such required annual installments on its bonds.

Debt Limit. The County has the power to contract indebtedness for any County purpose so long as the principal amount thereof,

subject to certain limited exceptions, shall not exceed seven per centum of the average full valuation of taxable real property of the

County and subject to certain enumerated exclusions and deductions such as water and certain sewer facilities and cash or

appropriations for current debt service. The constitutional method for determining full valuation is by taking the assessed valuation of

taxable real estate as shown upon the latest completed assessment roll and dividing the same by the equalization rate as determined by

the State Office of Real Property Services. The State Legislature is required to prescribe the manner by which such ratio shall be

determined. Average full valuation is determined by taking the sum of the full valuation of the last completed assessment roll and the

four preceding assessment rolls and dividing such sum by five.

Pursuant to Article VIII of the State Constitution and Title 9 of Article 2 of the Local Finance Law, the debt limit of the County is

calculated by taking 7% of the latest five-year average of the full valuation of all taxable real property.

Statutory Procedure

In general, the State Legislature has authorized the power and procedure for the County to borrow and incur indebtedness by the

enactment of the Local Finance Law subject, of course, to the provisions set forth above. The power to spend money, however,

generally derives from other law, including specifically the County Law and the General Municipal Law.

Pursuant to the Local Finance Law, the County authorizes the issuance of bonds by the adoption of a bond ordinance approved by

at least two-thirds of the members of the Board of Supervisors, the finance board of the County. Customarily, the Board of

Supervisors has delegated to the County Treasurer, as chief fiscal officer of the County, the power to authorize and sell bond

anticipation notes in anticipation of authorized bonds.

The Local Finance Law also provides that when a bond ordinance is published with a statutory form of notice, the validity of the

bonds authorized thereby, including bond anticipation notes issued in anticipation of the sale thereof, may be contested only if:

(1) Such obligations are authorized for a purpose for which the County is not authorized to expend money, or

(2) There has not been substantial compliance with the provisions of law which should have been complied with in the

authorization of such obligations, and

(3) An action contesting such validity, is commenced within twenty days after the date of such publication, or,

Such obligations are authorized in violation of the provisions of the Constitution.

The County generally issues its obligations after the time period specified in 3, above has expired with no action filed that has

contested validity. It is a procedure that is recommended by Bond Counsel and followed by the County, but it is not an absolute legal

requirement.

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Each bond ordinance usually authorizes the construction, acquisition or installation of the object or purpose to be financed, sets

forth the plan of financing and specifies the maximum maturity of the bonds subject to the legal (Constitution, Local Finance Law and

case law) restrictions relating to the period of probable usefulness with respect thereto. The County has authorized bonds for a variety

of County objects or purposes.

Statutory law in New York permits bond anticipation notes to be renewed each year provided annual principal installments are

made in reduction of the total amount of such bonds outstanding, commencing no later than two years from the date of the first of such

bonds and provided that such renewals do not exceed five years beyond the original date of borrowing. (See “Payment and Maturity”

under “Constitutional Requirements” herein.)

In general, the Local Finance Law contains provisions providing the County with power to issue certain other short-term general

obligation indebtedness including revenue and tax anticipation notes and budget and deficiency notes (see “Details of Outstanding

Indebtedness” herein).

Debt Outstanding End of Fiscal Year

Fiscal Years Ending December 31: 2015 2016 2017 2018 2019

Bonds $ 9,020,000 $ 7,375,000 $11,095,000 $ 9,060,000 $ 6,960,000

Bond Anticipation Notes 0 9,450,000 4,000,000 17,965,000 18,200,000

EFC Short-Term Financing 0 2,676,937 2,676,937 0 0

EFC Statutory Installment Bond 0 0 0 3,267,687 3,158,687

Total Debt Outstanding $ 9,020,000 $19,501,937 $17,771,937 $ 30,292,687 $ 28,318,687

Details of Outstanding Indebtedness

The following table sets forth the indebtedness of the County evidenced by bonds and notes as of April 9, 2020:

Amount

Type of Indebtedness Maturity Outstanding

Bonds 2020-2036 $ 6,735,000

EFC Statutory Installment Bond 2021-2048 3,049,687

Bond Anticipation Notes

Courthouse Renovation July 31, 2020 $ 14,000,000 (1)

Courthouse Renovation July 31, 2020 4,200,000 (1)

$ 27,984,687

(1) To be redeemed at maturity with proceeds of bonds anticipation notes or serial bonds and available funds of the County.

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Debt Statement Summary

Statement of Indebtedness, Debt Limit and Net Debt-Contracting Margin as of April 9, 2020:

Five-Year Average Full Valuation ....................................................................................................... $ 4,123,334,279

Debt Limit - 7% thereof ........................................................................................................................ 288,633,400

Inclusions:

Bonds .............................................................. $ 6,735,000

EFC Statutory Installment Bond ....................... 3,049,687

Bond Anticipation Notes .................................. 18,200,000

Total Inclusions ................................ $27,984,687

Exclusions:

Appropriations (1) ............................................... $ 1,945,000

Water Debt - Bonds (2) .......................................... 1,145,000

$ 3,090,000

Total Net Indebtedness ......................................................................................................................... $ 24,894,687

Net Debt-Contracting Margin ............................................................................................................... $ 263,738,716

The percent of debt contracting power exhausted is ............................................................................ 8.63%

The issuance of the Notes will increase the net indebtedness of the County by $16,000,000.

(1) Appropriations are excluded pursuant to Section 136.00 of the Local Finance Law. (2) Water Debt is excluded pursuant to Article VIII, Section 5B of the New York State Constitution.

Estimate of Obligations to be Issued

The County undertook a sizeable renovation to its historic courthouse in order to make the building ADA accessible. The

maximum estimated cost of the renovation is $20,000,000 and the County is expected to receive a one-third interest rate subsidy for

the project. Construction commenced in the fall of 2017 and has recently been completed. The County issued $14,000,000 bond

anticipation notes in 2018. On August 1, 2019, the County issued $4,200,000 bond anticipation notes as the second borrowing for the

aforementioned purpose. The County plans to redeem the bond anticipation notes with serial bonds in July 2021. Although the Board

of Supervisors authorized the issuance of $20,000,000 bonds, the County plans to only issue debt totaling $18,700,000 for this project.

The County Board of Supervisors has authorized the issuance of $19,227,000 serial bonds to construct a new highway facility.

Site work began at the end of 2019, and construction is expected to commence in the spring of 2020. The issuance of the Notes

represents the first borrowing for the project. It is anticipated that the bond anticipation notes will be converted to serial bonds in

2021.

The County is planning to establish a new Water District to serve residents in the Towns of Lincoln and Lenox. The maximum

proposed to be expended for the formation and construction of the proposed Water District improvements is estimated to be

$2,680,000. It is anticipated that the Board of Supervisors will authorize the issuance of serial bonds in the spring of 2020, with the

debt service being borne entirely by the property owners located within the benefited area.

The County Board of Supervisors has authorized the issuance of $3,500,000 serial bonds for an HVAC project in the County

offices. This project is underway, and construction is expected to be completed in the fall of 2020. The County anticipates issuing

serial bonds to finance this project.

The County is planning to submit an application for a rural broadband grant from the United States Department of Agriculture’s

Rural Utilities Service to expand and improve broadband connectivity to rural areas of the county. If the County receives this grant, it

will be required to provide a 25% match. It is estimated that this match will cost the County approximately $3,800,000. The County

would issue debt to fund this match, with the intention of repaying the debt service with fees collected from the users.

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Lease Purchase Agreement

The County Board of Supervisors has two (2) municipal leases relative to an energy efficiency project with SmartWatt Energy.

The principal amounts financed are $240,111 and $2,590,240 to be paid through fiscal years 2026 and 2033, respectively. It is

anticipated that the energy savings will offset the annual lease payments, and the agreement includes a “Guaranteed Energy Savings”

clause for the 17-year term of the lease.

Revenue and Tax Anticipation Notes

The County has not found it necessary to issue revenue anticipation notes or tax anticipation notes in the past and does not

anticipate borrowing during the 2020 fiscal year or the foreseeable future.

Bonded Debt Service

A schedule of bonded debt service may be found in “APPENDIX – B” to this Official Statement.

Estimated Overlapping Indebtedness

In addition to the County, the following political subdivisions have the power to issue bonds and to levy taxes or cause taxes to be

levied on taxable real property in the County. Bonded indebtedness, including bond anticipation notes, is estimated as of the close of

the fiscal year for which information is published of the respective municipalities, not adjusted to include subsequent bond issues, if

any.

Net

Political Subdivision Indebtedness Exclusions (1) Indebtedness

1 City $ 15,799,393 $ 2,480,000 (2) $ 13,319,393

15 Towns 18,756,520 14,075,520 (2) 4,681,000

9 Villages 25,812,181 22,388,564 (2) 3,423,618

10 School District 112,930,181 90,070,584 (3) 16,859,597

12 Fire Districts 892,235 59,513 832,722

Total $ 39,116,330

(1) Pursuant to applicable constitutional and statutory provisions, this indebtedness is deductible from gross indebtedness for debt

limit purposes. (2) Sewer and water debt. (3) Estimated State Building aid.

Source: State Comptroller’s reports for fiscal year ending 2017 for towns, cities and fire districts and fiscal year ending 2018 for

school districts and villages.

Debt Ratios

The following table sets forth certain ratios relating to the County's indebtedness, without giving effect to this financing, as of April 9,

2020:

Percentage

Amount of Per of Full

Indebtedness Capita (a) Valuation (b)

Net Direct Indebtedness (c) $ 24,894,687 $ 351.64 0.57%

Net Direct Plus Net

Overlapping Indebtedness (d) 64,011,017 904.17 1.48%

Note: (a) The County's 2018 population is 70,795. (See "Population Trends" herein.)

(b) The County's full valuation of taxable real estate for 2020 is $4,338,492,056. (See "Valuations, Rates and Tax Levies"

herein.)

(c) See "Debt Statement Summary" for calculation of Net Indebtedness, herein.

(d) The County's estimated applicable share of net underlying indebtedness is $39,116,330. (See "Estimated Overlapping

Indebtedness" herein.)

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SPECIAL PROVISIONS AFFECTING REMEDIES UPON DEFAULT

General Municipal Law Contract Creditors’ Provision. Each Note when duly issued and paid for will constitute a contract

between the County and the holder thereof. Under current law, provision is made for contract creditors of the County to enforce

payments upon such contracts, if necessary, through court action. Section 3-a of the General Municipal Law provides, subject to

exceptions not pertinent, that the rate of interest to be paid by the County upon any judgment or accrued claim against it on an amount

adjudged due to a creditor shall not exceed nine per centum per annum from the date due to the date of payment. This provision might

be construed to have application to the holders of the Notes in the event of a default in the payment of the principal of and interest on

the Notes.

Execution/Attachment of Municipal Property. As a general rule, property and funds of a municipal corporation serving the

public welfare and interest have not been judicially subjected to execution or attachment to satisfy a judgment, although judicial

mandates have been issued to officials to appropriate and pay judgments out of certain funds or the proceeds of a tax levy. In

accordance with the general rule with respect to municipalities, judgments against the County may not be enforced by levy and

execution against property owned by the County.

Authority to File For Municipal Bankruptcy. The Federal Bankruptcy Code allows public bodies, such as the County, recourse

to the protection of a Federal Court for the purpose of adjusting outstanding indebtedness. Section 85.80 of the Local Finance Law

contains specific authorization for any municipality in the State or its emergency control board to file a petition under any provision of

Federal bankruptcy law for the composition or adjustment of municipal indebtedness.

The State has consented that any municipality in the State may file a petition with the United States District Court or court of

bankruptcy under any provision of the laws of the United States, now or hereafter in effect, for the composition or adjustment of

municipal indebtedness. Subject to such State consent, under the United States Constitution, Congress has jurisdiction over such

matters and has enacted amendments to the existing federal bankruptcy statute, being Chapter 9 thereof, generally to the effect and

with the purpose of affording municipal corporations, under certain circumstances, with easier access to judicially approved

adjustment of debt including judicial control over identifiable and unidentifiable creditors.

No current state law purports to create any priority for holders of the Notes should the County be under the jurisdiction of any

court, pursuant to the laws of the United States, now or hereafter in effect, for the composition or adjustment of municipal

indebtedness.

The rights of the owners of Notes to receive interest and principal from the County could be adversely affected by the

restructuring of the County’s debt under Chapter 9 of the Federal Bankruptcy Code. No assurance can be given that any priori ty of

holders of debt obligations issued by the County (including the Notes) to payment from monies retained in any debt service fund or

from other cash resources would be recognized if a petition were filed by or on behalf of the County under the Federal Bankruptcy

Code or pursuant to other subsequently enacted laws relating to creditors’ rights; such monies might, under such circumstances, be

paid to satisfy the claims of all creditors generally.

Under the Federal Bankruptcy Code, a petition may be filed in the Federal Bankruptcy court by a municipality which is insolvent

or unable to meet its debts as they mature. Generally, the filing of such a petition operates as a stay of any proceeding to enforce a

claim against the municipality. The Federal Bankruptcy Code also requires that a plan be filed for the adjustment of the municipality’s

debt, which may modify or alter the rights of creditors and which could be secured. Any plan of adjustment confirmed by the court

must be approved by the requisite number of creditors. If confirmed by the bankruptcy court, the plan would be binding upon all

creditors affected by it.

State Debt Moratorium Law. There are separate State law provisions regarding debt service moratoriums enacted into law in

1975.

At the Extraordinary Session of the State Legislature held in November, 1975, legislation was enacted which purported to suspend

the right to commence or continue an action in any court to collect or enforce certain short-term obligations of The City of New York.

The effect of such act was to create a three-year moratorium on actions to enforce the payment of such obligations. On November 19,

1976, the Court of Appeals, the State’s highest court, declared such act to be invalid on the ground that it violates the provisions of the

State Constitution requiring a pledge by such County of its faith and credit for the payment of obligations.

As a result of the Court of Appeals decision in Flushing National Bank v. Municipal Assistance Corporation for the City of New

York, 40 N.Y.2d 731 (1976), the constitutionality of that portion of Title 6-A of Article 2 of the Local Finance Law enacted at the 1975

Extraordinary Session of the State legislature authorizing any county, city, town or village with respect to which the State has declared

a financial emergency to petition the State Supreme Court to stay the enforcement against such municipality of any claim for payment

relating to any contract, debt or obligation of the municipality during the emergency period, is subject to doubt. In any event, no such

emergency has been declared with respect to the County.

Right of Municipality or State to Declare a Municipal Financial Emergency and Stay Claims Under State Debt Moratorium Law.

The State Legislature is authorized to declare by special act that a state of financial emergency exists in any county, city, town or

village. (The provision does not by its terms apply to school districts or fire districts.) In addition, the State Legislature may authorize

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by special act establishment of an “emergency financial control board” for any county, city, town or village upon determination that

such a state of financial emergency exists. Thereafter, unless such special act provides otherwise, a voluntary petition to stay claims

may be filed by any such municipality (or by its emergency financial control board in the event said board requests the municipality to

petition and the municipality fails to do so within five days thereafter). A petition filed in supreme court in county in which the

municipality is located in accordance with the requirements of Title 6-A of the Local Finance Law (“Title 6-A”) effectively prohibits

the doing of any act for ninety days in the payment of claims, against the municipality including payment of debt service on

outstanding indebtedness.

This includes staying the commencement or continuation of any court proceedings seeking payment of debt service due, the

assessment, levy or collection of taxes by or for the municipality or the application of any funds, property, receivables or revenues of

the municipality to the payment of debt service. The stay can be vacated under certain circumstances with provisions for the payment

of amounts due or overdue upon a demand for payment in accordance with the statutory provisions set forth therein. The filing of a

petition may be accompanied with a proposed repayment plan which upon court order approving the plan, may extend any stay in the

payment of claims against the municipality for such “additional period of time as is required to carry out fully all the terms and

provisions of the plan with respect to those creditors who accept the plan or any benefits thereunder.” Court approval is conditioned,

after a hearing, upon certain findings as provided in Title 6-A.

A proposed plan can be modified prior to court approval or disapproval. After approval, modification is not permissible without

court order after a hearing. If not approved, the proposed plan must be amended within ten days or else the stay is vacated and claims

including debt service due or overdue must be paid. It is at the discretion of the court to permit additional filings of amended plans and

continuation of any stay during such time. A stay may be vacated or modified by the court upon motion of any creditor if the court

finds after a hearing, that the municipality has failed to comply with a material provision of an accepted repayment plan or that due to a

“material change in circumstances” the repayment plan is no longer in compliance with statutory requirements.

Once an approved repayment plan has been completed, the court, after a hearing upon motion of any creditor, or a motion of the

municipality or its emergency financial control board, will enter an order vacating any stay then in effect and enjoining of creditors

who accepted the plan or any benefits thereunder from commencing or continuing any court action, proceeding or other act described

in Title 6-A relating to any debt included in the plan.

Title 6-A requires notice to all creditors of each material step in the proceedings. Court determinations adverse to the municipality

or its financial emergency control board are appealable as of right to the appellate division in the judicial department in which the court

is located and thereafter, if necessary, to the Court of Appeals. Such appeals stay the judgment or appealed from and all other actions,

special proceedings or acts within the scope of Section 85.30 of Title 6-A pending the hearing and determination of the appeals.

Whether Title 6-A is valid under the Constitutional provisions regarding the payment of debt service is not known. However,

based upon the decision in the Flushing National Bank case described above, its validity is subject to doubt.

While the State Legislature has from time to time adopted legislation in response to a municipal fiscal emergency and established

public benefit corporations with a broad range of financial control and oversight powers to oversee such municipalities, generally such

legislation has provided that the provisions of Title 6-A are not applicable during any period of time that such a public benefit

corporation has outstanding indebtedness issued on behalf of such municipality.

Fiscal Stress and State Emergency Financial Control Boards. Pursuant to Article IX Section 2(b)(2) of the State Constitution, any

local government in the State may request the intervention of the State in its “property, affairs and government” by a two-thirds vote of

the total membership of its legislative body or on request of its chief executive officer concurred in by a majority of such membership.

This has resulted in the adoption of special acts for the establishment of public benefit corporations with varying degrees of authority

to control the finances (including debt issuance) of the cities of Buffalo, Troy and Yonkers and the County of Nassau. The specific

authority, powers and composition of the financial control boards established by these acts varies based upon circumstances and needs.

Generally, the State legislature has granted such boards the power to approve or disapprove budget and financial plans and to issue

debt on behalf of the municipality, as well as to impose wage and/or hiring freezes and approve collective bargaining agreements in

certain cases. Implementation is left to the discretion of the board of the public benefit corporation. Such a State financial control

board was first established for New York City in 1975. In addition, on a certificate of necessity of the governor reciting facts which in

the judgment of governor constitute an emergency requiring enactment of such laws, with the concurrences of two-thirds of the

members elected in each house of the State legislature the State is authorized to intervene in the “property, affairs and governments” of

local government units. This occurred in the case of the County of Erie in 2005. The authority of the State to intervene in the financial

affairs of local government is further supported by Article VIII, Section 12 of the Constitution which declares it to be the duty of the

State legislature to restrict , subject to other provisions of the Constitution, the power of taxation, assessment, borrowing money and

contracting indebtedness and loaning the credit of counties, cities, towns and villages so as to prevent abuses in taxation and

assessment and in contracting indebtedness by them.

In 2013, the State established a new state advisory board to assist counties, cities, towns and villages in financial distress. The

Financial Restructuring Board for Local Governments (the “FRB”), is authorized to conduct a comprehensive review of the finances

and operations of any such municipality deemed by the FRB to be fiscally eligible for its services upon request by resolution of the

municipal legislative body and concurrence of its chief executive. The FRB is authorized to make recommendations for, but cannot

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compel improvement of fiscal stability, management and delivery of municipal services, including shared services opportunities and is

authorized to offer grants and/or loans of up to $5,000,000 through a Local Government Performance and Efficiency Program to

undertake certain recommendations. If a municipality agrees to undertake the FRB recommendations, it will be automatically bound

to fulfill the terms in order to receive the aid.

The FRB is also authorized to serve as an alternative arbitration panel for binding arbitration.

Although from time to time, there have been proposals for the creation of a statewide financial control board with broad authority

over local governments in the State, the FRB does not have emergency financial control board powers to intervene such as the public

benefit corporations established by special acts as described above.

Several municipalities in the State are presently working with the FRB. The County has not requested FRB assistance, nor does it

reasonably expect to do so in the foreseeable future. School districts and fire districts are not eligible for FRB assistance.

Constitutional Non-Appropriation Provision. There is in the Constitution of the State, Article VIII, Section 2, the following

provision relating to the annual appropriation of monies for the payment of due principal of and interest on indebtedness of every

county, city, town, village and school district in the State: “If at any time the respective appropriating authorities shall fail to make

such appropriations, a sufficient sum shall be set apart from the first revenues thereafter received and shall be applied to such purposes.

The fiscal officer of any county, city, town, village or school district may be required to set aside and apply such revenues as aforesaid

at the suit of any holder of obligations issued for any such indebtedness.” This constitutes a specific non-exclusive constitutional

remedy against a defaulting municipality or school district; however, it does not apply in a context in which monies have been

appropriated for debt service but the appropriating authorities decline to use such monies to pay debt service. However, Article VIII,

Section 2 of the Constitution of the State also provides that the fiscal officer of any county, city, town, village or school district may be

required to set apart and apply such revenues at the suit of any holder of any obligations of indebtedness issued with the pledge of the

faith of the credit of such political subdivision. See “General Municipal Law Contract Creditors’ Provision” herein.

The Constitutional provision providing for first revenue set asides does not apply to tax anticipation notes, revenue anticipation

notes or bond anticipation notes.

Default Litigation. In prior years, certain events and legislation affecting a holder’s remedies upon default have resulted in

litigation. While courts of final jurisdiction have upheld and sustained the rights of bondholders, such courts might hold that future

events including financial crises as they may occur in the State and in political subdivisions of the State require the exercise by the

State or its political subdivisions of emergency and police powers to assure the continuation of essential public services prior to the

payment of debt service. See “Nature of Obligation” and “State Debt Moratorium Law” herein.

No Past Due Debt. No principal of or interest on County indebtedness is past due. The County has never defaulted in the

payment of the principal of and interest on any indebtedness.

MARKET AND RISK FACTORS

There are various forms of risk associated with investing in the Notes. The following is a discussion of certain events that could

affect the risk of investing in the Notes. In addition to the events cited herein, there are other potential risk factors that an investor

must consider. In order to make an informed investment decision, an investor should be thoroughly familiar with the entire Official

Statement, including its appendices, as well as all areas of potential risk.

The financial condition of the County as well as the market for the Notes could be affected by a variety of factors, some of which

are beyond the County’s control. There can be no assurance that adverse events in the State and in other jurisdictions in the country,

including, for example, the seeking by a municipality or large taxable property owner of remedies pursuant to the Federal Bankruptcy

Code or otherwise, will not occur which might affect the market price of and the market for the Notes. If a significant default or other

financial crisis should occur in the affairs of the State or another jurisdiction, or any of their respective agencies or political

subdivisions thereby further impairing the acceptability of obligations issued by borrowers within the State, both the ability of the

County to arrange for additional borrowings, and the market for and market value of outstanding debt obligations, including the Notes,

could be adversely affected.

The County is dependent in part on financial assistance from the State. However, if the State should experience difficulty in

borrowing funds in anticipation of the receipt of State taxes and revenues in order to pay State aid to municipalities and school districts

in the State, including the County, in this year or future years, the County may be affected by a delay, until sufficient taxes have been

received by the State to make State aid payments to the County. In several recent years, the County has received delayed payments of

State aid which resulted from the State's delay in adopting its budget and appropriating State aid to municipalities and school districts,

and consequent delay in State borrowing to finance such appropriations. (See also “The County - State Aid”).

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There are a number of general factors which could have a detrimental effect on the ability of the County to continue to generate

revenues, particularly property taxes. For instance, the termination of a major commercial enterprise or an unexpected increase in tax

certiorari proceedings could result in a significant reduction in the assessed valuation of taxable real property in the County.

Unforeseen developments could also result in substantial increases in County expenditures, thus placing strain on the County’s

financial condition. These factors may have an effect on the market price of the Notes.

If a holder elects to sell his investment prior to its scheduled maturity date, market access or price risk may be incurred. If and

when a holder of any of the Notes should elect to sell a Note prior to its maturity, there can be no assurance that a market shall have

been established, maintained and be in existence for the purchase and sale of any of the Notes. Recent global financial crises have

included limited periods of significant disruption. In addition, the price and principal value of the Notes is dependent on the prevailing

level of interest rates; if interest rates rise, the price of a bond or note will decline, causing the bondholder or noteholder to incur a

potential capital loss if such bond or note is sold prior to its maturity.

Amendments to U.S. Internal Revenue Code could reduce or eliminate the favorable tax treatment granted to municipal debt,

including the Notes and other debt issued by the County. Any such future legislation would have an adverse effect on the market value

of the Notes (See “TAX MATTERS” herein).

The enactment of the Tax Levy Limitation Law, which imposes a tax levy limitation upon municipalities, school districts and fire

districts and have restrictions in the State, including the County without providing an exclusion for debt service on obligations issued

by municipalities or fire districts, including the County, could have an impact upon the market price of the Notes. See “TAX LEVY

LIMITATION LAW” herein.

COVID 19. The spread of COVID-19, a respiratory disease caused by a new strain of coronavirus, which was first detected in

China and has since spread globally, including the United States, and to New York State, has been declared a pandemic by the World

Health Organization. The outbreak of the disease has affected travel, commerce and financial markets globally and is widely expected

to affect economic growth worldwide.

The outbreak of COVID-19 across the United States has caused the federal government to declare a national state of emergency.

The State of New York has likewise declared a state of emergency and the Legislature has added “disease outbreak” to the definition

of “disaster” (which already includes “epidemic” ) in the relevant Executive Law provision by adoption of Senate Bill S7919, signed

by the Governor into law on March 3, 2020.

Executive Law Section 24 contains procedures for local governments to declare local states of emergency and issue orders to

implement same.

While the virus might affect revenue streams supporting revenue bond debt of some public authorities, as compared to general

obligation debt, it is not possible to determine or reasonably predict at this time whether there could also be a material impact on

local municipal and school district budgets, or state and local resources to meet their obligations supporting same.

The degree of any such impact to the County’s operations and finances, is extremely difficult to predict due to the dynamic nature

of the COVID-19 outbreak, including uncertainties relating to its (i) duration, and (ii) severity, as well as with regard to what actions

may be taken by governmental and other health care authorities to contain or mitigate its impact. The continued spread of the outbreak

could have a material adverse effect on the County and its economy. The County is monitoring the situation and will take such

proactive measures as may be required to maintain its functionality and meet its obligations.

The County has concerns about the potential for decreased sales tax revenue resulting from businesses being temporarily closed

and some workers being temporarily unemployed due to the COVID-19 pandemic. Although the County will be monitoring this

closely, and making adjustments to its spending plan as needed, it is not possible to estimate the potential loss in sales tax revenue at

this time. Actual 2020 sales tax revenue received through March 31, 2020 exceeded the prior year by 5.2%.

Cybersecurity. The County, like many other public and private entities, relies on a large and complex technology environment to

conduct its operations. As such, it may face multiple cybersecurity threats including, but not limited to, hacking, viruses, malware and

other attacks on computer or other sensitive digital systems and networks. There can be no assurances that any security and

operational control measures implemented by the County will be completely successful to guard against and prevent cyber threats and

attacks. The result of any such attacks could impact business operations and/or digital networks and systems and the costs of

remedying any such damage could be significant.

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HISTORICAL CONTINUING DISCLOSURE COMPLIANCE

In order to assist the purchasers in complying with Rule 15c2-12 promulgated by the Securities and Exchange Commission under

the Securities Exchange Act of 1934, as amended (“Rule 15c2-12”), the County will enter into a Material Event Notices Certificate,

the form of which is attached hereto as “APPENDIX – D.”

Historical Compliance

The County has in the previous five years complied, in all material respects, with any previous undertakings pursuant to the Rule;

however, the County has failed to file audited annual financial statements within 180 days of the end of the fiscal year as required by

the continuing disclosure undertaking for the serial bonds issued through the Municipal Bond Bank Agency in 2010.

It should be noted the County does not complete its audited financial statements within 180 days of the end of the fiscal year, and

therefore cannot file such documents within the timeframe stated under previous undertakings of the County.

A summary of filings for the fiscal year ending December 31, 2013 through and including December 31, 2018 of the annual

information, unaudited financial statements and audited financial statements submitted to EMMA is as follows:

Fiscal Year Ending Annual Information Unaudited Financial Statements Audited Financial Statements

December 31, 2013 June 29, 2014 June 26, 2014 September 30, 2014

December 31, 2014 June 29, 2015 August 10, 2015 October 5, 2015

December 31, 2015 June 28, 2016 September 20, 2016 October 3, 2016

December 31, 2016 June 27, 2017 Not filed September 29, 2017

December 31, 2017 June 29, 2018 July 18, 2018 September 28, 2018

December 31, 2018 June 27, 2019 June 22, 2019 August 26, 2019

In addition, under its 2017 continuing disclosure undertaking agreement, the County is required to file its unaudited financial

statements, if available, in the event the audited financial statements are unavailable by the end of the six month after the fiscal year

end. The County’s unaudited financial statements for fiscal year end 2016 and 2017 were not available within 6 months after the fiscal

year end and therefore were not filed.

Notices of failure to file were submitted to EMMA on July 14, 2015, March 8, 2016, March 28, 2017, March 16, 2018, July 13,

2018 and July 2, 2019 relating to annual information and audited reports that were not filed in a timely manner.

TAX MATTERS

In the opinion of Orrick, Herrington & Sutcliffe LLP (“Bond Counsel”), based upon an analysis of existing laws, regulations,

rulings, and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the Notes is excluded

from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”) and is

exempt from personal income taxes imposed by the State of New York (or any political subdivision thereof, including The City of

New York). Bond Counsel is of the further opinion that interest on the Notes is not a specific preference item for purposes of the

federal alternative minimum tax. A complete copy of the proposed form of opinion of Bond Counsel is set forth in “APPENDIX – E”

hereto.

The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal

income tax purposes of interest on obligations such as the Notes. The County has covenanted to comply with certain restrictions

designed to insure that interest on the Notes will not be included in federal gross income. Failure to comply with these covenants may

result in interest on the Notes being included in gross income for federal income tax purposes possibly from the date of original

issuance of the Notes. The opinion of Bond Counsel assumes compliance with these covenants. Bond Counsel has not undertaken to

determine (or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after the date of

issuance of the Notes may adversely affect the value of, or the tax status of interest on, the Notes. Further, no assurance can be given

that pending or future legislation or amendments to the Code, if enacted into law, or any proposed legislation or amendments to the

Code, will not adversely affect the value of, or the tax status of interest on, the Notes.

Certain requirements and procedures contained or referred to the in the Arbitrage Certificate, and other relevant documents may

be changed and certain actions (including, without limitation, economic defeasance of the Notes) may be taken or omitted under the

circumstances and subject to the terms and conditions set forth in such documents. Bond Counsel expresses no opinion as to any

Notes or the interest thereon if any such change occurs or action is taken or omitted.

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Although Bond Counsel is of the opinion that interest on the Notes is excluded from gross income for federal income tax purposes

and is exempt from personal income taxes imposed by the State of New York or any political subdivision thereof (including The City

of New York), the ownership or disposition of, or the amount, accrual or receipt of interest on, the Notes may otherwise affect an

Owner’s federal or state tax liability. The nature and extent of these other tax consequences will depend upon the particular tax status

of the Owner or the Owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax

consequences.

Future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the Notes to be

subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise

prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. Legislative proposals have been

made which would limit the exclusion from gross income of interest on obligations like the Notes to some extent for taxpayers who are

individuals and whose income is subject to higher marginal income tax rates. Other proposals have been made that could significantly

reduce the benefit of, or otherwise affect, the exclusion from gross income of interest on obligations like the Notes. The introduction

or enactment of any such legislative proposals, clarification of the Code or court decisions may also affect the market price for, or

marketability of, the Notes. Prospective purchasers of the Notes should consult their own tax advisors regarding any pending or

proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

LEGAL MATTERS

Legal matters incident to the authorization, issuance and sale of the Notes are subject to the approving legal opinion of Orrick,

Herrington & Sutcliffe LLP, Bond Counsel. Bond Counsel expects to deliver such opinion at the time of issuance of the Notes

substantially in the form set forth in “APPENDIX – E” hereto.

LITIGATION

The County for some years has been involved in litigation adverse to the Oneida Indian Nation of New York (OIN) and other

Indian tribes, and in some cases the United States, with respect to Indian land claims, tax and regulatory disputes, and the OIN’s

application to have certain lands taken into trust for its benefit. The County successfully defended against the OIN’s land claims; those

claims were finally dismissed by the Second Circuit in 2010. Oneida Indian Nation of New York v. County of Oneida, 617 F.3d 114

(2d Cir. 2010), cert. denied S.Ct (2011).

The Oneida Settlement Agreement

The County entered into a historic Settlement Agreement dated May 16, 2013, along with New York State, Oneida County and the

Oneida Indian Nation of New York. The Agreement was approved by the United States District Court for the Northern District of

New York (Kahn, J.) on March 4, 2014. The Agreement purports to resolve all pending litigation relating to the OIN, including the

challenge by the State and Counties to the U.S. Department of Interior’s 2008 land into trust decision, in which the Department of

Interior agreed to take into trust approximately 13,000 acres located in the two counties. The Agreement permits the OIN to purchase

and have transferred into trust an additional 1,000 acres in Madison County. As required by the Agreement, the County has dismissed

tax assessment proceedings, withdrawn notices of foreclosure, and canceled the underlying delinquent tax liens with respect to OIN

lands in the County.

Two tribes sought to intervene in the Northern District of New York to object to the Settlement. Judge Kahn denied those

intervention motions and the time for the tribes to take an appeal has expired.

Challenges to Oneida Settlement Agreement

Three lawsuits have been filed in state court— one by the Towns of Vernon and Verona in Oneida County and two by citizen-

taxpayers—which seek to overturn the Agreement on various grounds. Both citizen taxpayer suits (Robert L. Schulz’s in Albany

County and Richard E. Kaplan’s in Oneida County) name only New York State.

Vernon/Verona

The action by the towns (Town of Vernon (Oneida County) et al. v. Hon. Andrew Cuomo et al., filed in Albany County Supreme

Court, August 19, 2013), named Madison County along with the Chairman of the Board of Supervisors for Madison County, John

Becker (as well as Oneida County and its executive) as defendants. The towns allege that the Counties lacked the authority to approve

the settlement, which the towns contend is illegal. The trial court granted the defendants’ motion to dismiss on June 27, 2014; the

Appellate Division, Third Department affirmed the dismissal on December 17, 2015 (and denied the towns’ motion for

reargument/leave to appeal on March 1, 2016); the New York Court of Appeals denied the towns’ motion for leave to appeal on June

9, 2016, which terminated the matter.

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Schulz

Madison County is not named in this action (Robert L. Schulz v. New York State Executive, et al. Albany County Supreme Court

Index No. 4115-13) although Schulz attempted unsuccessfully to join both Madison and Oneida Counties. New York State

successfully moved to dismiss the Schulz lawsuit; the Third Department on February 17, 2016 affirmed the dismissal of the action

against New York State as well as the order denying his attempt to join Madison and Oneida Counties. The New York Court of

Appeals denied Schulz’s motion for leave to appeal on June 23, 2016, terminating the matter.

Kaplan

Madison County is not named in this taxpayer action which was commenced in Oneida County Supreme Court on May 22, 2015

(Robert E. Kaplan v State of New York, Index No. CA2015-001265). The court granted the State’s motion to dismiss on February 19,

2016. The Fourth Department affirmed the dismissal on February 3, 2017. The time for a further appeal to the New York Court of

Appeals has expired. This matter is concluded.

State of New York, et at. v. Sally R. Jewell, et al., No. 6-08-CV-00660 (NDNY)

The land-into-trust litigation was commenced in 2008 by the State of New York, Oneida County and Madison County, which

sought to prevent the Secretary of the Interior from taking approximately 4,000 acres in Madison County into trust for the benefit of

the Oneida Indian Nation of New York. The Oneida Settlement Agreement called for Madison County (and Oneida County and New

York State) to terminate their participation in this litigation and their lawsuit was dismissed effective March 4, 2014. Other parties

continued to challenge the land-into-trust determination in related cases (Upstate Citizens for Equality [6:08-CV-0633] and Central

New York Fair Business Association [6:08-CV-647]). The district court on March 26, 2015 granted summary judgment to the federal

defendants dismissing all challenges to the original 2008 record of decision as well as to the amended record of decision issued by DOI

in January 2014. The plaintiffs in these related cases filed notices of appeal on May 20, 2015 and May 22, 2015, respectively. The

Second Circuit affirmed the district court’s Upstate Citizens decision on November 9, 2016 by way of a full opinion. A separate panel

of the Second Circuit affirmed the district court’s Central NY Fair Business decision on December 9, 2016 in a non-precedential

summary order. A petition for certiorari in Central NY Fair Business was denied May 15, 2017. A petition for certiorari in Upstate

Citizens was filed April 26, 2017 and denied November 27, 2017, with Justice Thomas writing a strong dissent.

Stockbridge-Munsee Community, et al. v. New York State, et al., No.86-CV-1140 (NDNY)

Madison County engaged special counsel in connection with the defense of an Indian claim entitled, Stockbridge-Munsee

Community, et al. v. New York State, et al. This case was filed in October of 1986, in the United States District Court for the Northern

District of New York. It involved a claim by the Stockbridge-Munsee Indian Community to land within the area claimed by the Oneida

Indian Nation of New York (OIN) in Madison County, located in parts of the towns of Lincoln, Smithfield and Stockbridge and the

Village of Munnsville. The issues, in many respects, were similar to those in the Oneida land claim case, The Oneida Indian Nation of

New York State, et al. v. The County of Oneida. New York, and the County of Madison, New York, Civil Action No. 74-CV-

187. That action was dismissed with prejudice, with all appeals exhausted, in 2011 (Oneida Indian Nation of New York v. County of

Oneida, 617 F.3d 114 (2d Cir. 2010), cert. denied S.Ct (2011)). Proceedings in the instant case had been stayed for many years

awaiting resolution of the Oneida land claim case. Following the final resolution of the Oneida land claim case in 2011, the United

States District Court for the Northern District of New York granted motions for summary judgment brought by the State of New York

and Madison County, dismissing all claims. The district court issued its decision on July 23, 2013. On June 20, 2014, the Second

Circuit affirmed that decision. The Stockbridge-Munsee filed two post-decision petitions: (1) a petition for a writ of prohibition, filed

in the Second Circuit, seeking to block the transfer of lands into trust while the tribe pursued further judicial review; and (2) a petition

for a writ of certiorari seeking review in the Supreme Court of the United States. That Second Circuit denied the writ of prohibition on

July 23, 2014. The Supreme Court denied the tribe’s cert petition on March 2, 2015, bringing this litigation to a final close.

Other Matters

The County is subject to a number of lawsuits in addition to the ones described above in the ordinary conduct of its affairs. Such

lawsuits and claims are not, in the opinion of management, expected to have a material effect on the County’s financial condition.

RATING

The Notes are not rated. The purchaser(s) of the Notes may choose to have a rating completed after the sale pending the approval

of the County and at the expense of the purchaser(s), including any fees to be incurred by the County, as such rating action will result

in a material event notification to be posted to EMMA which is required by the County’s Continuing Disclosure Undertakings. (See

“APPENDIX-D” herein.)

Standard & Poor’s Credit Market Services (“S&P”) has assigned its rating of “AA-” with a stable outlook to the County’s

outstanding serial bonds. Such rating reflects only the view of such rating agency, and any desired explanation of the significance of

such ratings should be obtained from Standard & Poor’s Credit Market Services, 55 Water Street – 38th Floor, New York, New York

10041, (212) 438-7983.

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On October 8, 2018, S&P downgraded its rating to “A+” from “AA-” for outstanding obligations of the County issued through the

New York Municipal Bond Bank Agency (“MBBA”). The Continuing Disclosure Undertaking entered into with the MBBA requires

the MBBA to file a material event notice to EMMA for the benefit of the bondholders. The County is not obligated under the

Continuing Disclosure Undertaking agreement to file material event notices to EMMA.

Generally, rating agencies base their ratings on the information and materials furnished to it and on investigations, studies and

assumptions by the respective rating agency. There is no assurance that a particular rating will apply for any given period of time or

that it will not be lowered or withdrawn entirely if, in the judgment of the agency originally establishing the rating, circumstances so

warrant. Any downward revision or withdrawal of the rating of the outstanding bonds may have an adverse effect on the market price

of the outstanding bonds and the Notes.

MUNICIPAL ADVISOR

Fiscal Advisors & Marketing, Inc. (the "Municipal Advisor"), is a municipal advisor, registered with the Securities and Exchange

Commission and the Municipal Securities Rulemaking Board. The Municipal Advisor serves as independent financial advisor to the

County on matters relating to debt management. The Municipal Advisor is a financial advisory and consulting organization and is not

engaged in the business of underwriting, marketing, or trading municipal securities or any other negotiated instruments. The

Municipal Advisor has provided advice as to the plan of financing and the structuring of the Notes. The advice on the plan of

financing and the structuring of the Notes was based on materials provided by the County and other sources of information believed to

be reliable. The Municipal Advisor has not audited, authenticated, or otherwise verified the information provided by the County or the

information set forth in this Official Statement or any other information available to the County with respect to the appropriateness,

accuracy, or completeness of disclosure of such information and no guarantee, warranty, or other representation is made by the

Municipal Advisor respecting the accuracy and completeness of or any other matter related to such information and this Official

Statement. The fees to be paid by the County to the Municipal Advisor may be partially contingent on the successful closing of the

Notes.

CUSIP IDENTIFICATION NUMBERS

It is anticipated that CUSIP (an acronym that refers to Committee on Uniform Security Identification Procedures) identification

numbers will be printed on the Notes. All expenses in relation to the printing of CUSIP numbers on the Notes will be paid for by the

County provided, however; the County assumes no responsibility for any CUSIP Service Bureau charge or other charge that may be

imposed for the assignment of such numbers.

MISCELLANEOUS

So far as any statements made in this Official Statement involve matters of opinion or estimates whether or not expressly stated,

they are set forth as such and not as representations of fact, and no representation is made that any of the statements will be realized.

Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract

with the holders of the Notes.

Statements in this official statement, and the documents included by specific reference, that are not historical facts are forward-

looking statements, which are based on the County management’s beliefs as well as assumptions made by, and information currently

available to, the County’s management and staff. Because the statements are based on expectations about future events and economic

performance and are not statements of fact, actual results may differ materially from those projected. Important factors that could

cause future results to differ include legislative and regulatory changes, changes in the economy, and other factors discussed in this and

other documents that the County’s files with the repositories. When used in County documents or oral presentation, the words

“anticipate”, “estimate”, “expect”, “objective”, “projection”, “forecast”, “goal”, or similar words are intended to identify forward-

looking statements.

Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the County, expressed no opinions as to the accuracy or completeness of

information in any documents prepared by or on behalf of the County for use in connection with the offer and sale of the Notes,

including but not limited to, the financial or statistical information in this Official Statement.

References herein to the Constitution of the State and various State and federal laws are only brief outlines of certain provisions

thereof and do not purport to summarize or describe all of such provisions.

Concurrently with the delivery of the Notes, the County will furnish a certificate to the effect that as of the date of the Official

Statement, the Official Statement did not contain any untrue statement of a material fact or omit to state a material fact necessary to

make the statements herein, in the light of the circumstances under which they were made, not misleading, subject to a limitation as to

information in the Official Statement obtained from sources other than the County.

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The Official Statement is submitted only in connection with the sale of the Notes by the County and may not be reproduced or

used in whole or in part for any other purpose.

Fiscal Advisors & Marketing, Inc. may place a copy of this Official Statement on its website at www.fiscaladvisors.com. Unless

this Official Statement specifically indicates otherwise, no statement on such website is included by specific reference or constitutes a

part of this Official Statement. Fiscal Advisors & Marketing, Inc. has prepared such website information for convenience, but no

decisions should be made in reliance upon that information. Typographical or other errors may have occurred in converting original

source documents to digital format, and neither the County nor Fiscal Advisors & Marketing, Inc. assumes any liability or

responsibility for errors or omissions on such website. Further, Fiscal Advisors & Marketing, Inc. and the County disclaim any duty or

obligation either to update or to maintain that information or any responsibility or liability for any damages caused by viruses in the

electronic files on the website. Fiscal Advisors & Marketing, Inc. and the County also assume no liability or responsibility for any

errors or omissions or for any updates to dated website information.

The County will act as Paying Agent for the Notes.

The County’s contact information is as follows: Lou Anne Randall, PO Box 575, 138 North Court Street, Wampsville, NY

13163, Phone: (315) 366-2390, Fax: (315) 366-2705, Email: louanne.randall@madisoncounty.ny.gov.

This Official Statement has been duly executed and delivered by the County Treasurer of the County of Madison.

COUNTY OF MADISON

Dated: April 9, 2020 CINDY J. EDICK

COUNTY TREASURER

APPENDIX - A

Madison County

Fiscal Years Ending December 31: 2014 2015 2016 2017 2018

ASSETS

Cash and Short-term Investments 15,594,114$ 14,396,900$ 18,158,196$ 17,813,412$ 23,740,708$

Receivables:

Taxes - net 8,376,032 7,936,398 7,976,833 7,165,906 7,449,042

Accounts 1,069,918 1,681,515 607,035 1,929,788 2,288,009

State and Federal 7,432,623 7,146,509 6,774,201 7,211,037 7,527,105

Due from Other Funds 8,696,679 10,455,279 8,667,676 13,666,439 9,181,026

Prepaid Expenses 930,549 843,332 985,213 1,028,390 1,091,685

Inventory (Materials and Supplies) 167,308 177,421 178,816 133,194 134,581

TOTAL ASSETS 42,267,223$ 42,637,354$ 43,347,970$ 48,948,166$ 51,412,156$

LIABILITIES AND FUND EQUITY

Accounts Payable 3,667,066$ 3,812,084$ 3,711,457$ 4,565,371$ 4,908,396$

Accrued Liabilities 459,391 590,002 1,067,351 - -

Due to Other Funds 493,108 1,569,927 3,943 45,146 2,003,339

Due to Other Governments 12,568,987 12,154,448 11,977,628 13,001,273 13,798,290

Deferred Revenues 2,775,461 2,859,378 3,018,754 3,003,523 3,416,242

Other Liabilities 2,937 13,271 2,522 2,522 19,231

TOTAL LIABILITIES 19,966,950$ 20,999,110$ 19,781,655$ 20,617,835$ 24,145,498$

FUND EQUITY

Nonspendable 1,097,857$ 1,020,753$ 1,164,029$ 1,161,584$ 1,226,266$

Restricted 4,792,277 5,302,491 5,941,481 5,129,568 4,380,919

Assigned 3,704,122 3,743,173 4,332,031 6,354,032 5,614,128

Unassigned 12,706,017 11,571,827 12,128,774 15,685,147 16,045,345

TOTAL FUND EQUITY 22,300,273$ 21,638,244$ 23,566,315$ 28,330,331$ 27,266,658$

TOTAL LIABILITIES and FUND EQUITY 42,267,223$ 42,637,354$ 43,347,970$ 48,948,166$ 51,412,156$

Source: Audited financial reports of the County. This Appendix is not itself audited.

GENERAL FUND

Balance Sheets

APPENDIX - A1

Madison County

Fiscal Years Ending December 31: 2013 2014 2015 2016 2017

REVENUES

Real Property Taxes 30,039,163$ 32,335,667$ 35,427,020$ 36,356,131$ 38,085,213$

Real Property Tax Items 1,424,061 1,363,931 1,418,750 1,245,091 1,316,381

Non-Property Tax Items 25,632,786 26,332,041 26,161,814 26,609,721 29,910,949

Departmental Income 5,934,874 6,187,413 5,733,438 5,259,679 5,691,952

Intergovernmental Charges 235,324 228,886 234,154 130,062 161,367

Use of Money & Property 63,293 88,414 62,026 133,917 169,400

Licenses and Permits 19,884 14,453 18,330 17,767 14,969

Fines and Forfeitures 138,629 140,769 147,616 112,344 108,403

Sale of Property and

Compensation for Loss 1,136,601 1,510,055 1,429,086 1,978,293 990,657

Miscellaneous 2,494,442 2,078,437 2,291,974 2,557,202 1,733,361

Interfund Revenues 1,873,502 1,765,191 242,855 88,637 90,071

Revenues from State Sources 11,535,519 25,038,240 (1) 14,373,430 13,880,751 17,804,144

Revenues from Federal Sources 7,977,872 7,952,032 7,801,243 7,938,516 7,275,664

Total Revenues 88,505,950$ 105,035,529$ 95,341,736$ 96,308,111$ 103,352,531$

EXPENDITURES

General Government Support 21,551,143$ 22,297,265$ 24,597,525$ 22,972,845$ 25,395,371$

Education 4,640,425 4,310,542 4,343,069 4,976,850 4,969,933

Public Safety 13,051,625 14,202,727 14,233,277 14,770,801 15,715,045

Health 8,319,618 7,482,066 7,112,517 6,830,367 6,976,673

Transportation 256,025 229,854 179,349 230,190 305,154

Economic Assistance and

Opportunity 29,534,600 29,921,927 29,916,552 29,440,172 28,249,223

Culture and Recreation 572,789 604,279 718,467 768,930 764,389

Home and Community Services 1,198,487 1,231,531 1,451,276 1,464,973 1,671,816

Employee Benefits 3,169,772 2,762,423 1,625,052 636,025 1,856,469

Total Expenditures 82,294,484$ 83,042,614$ 84,177,084$ 82,091,153$ 85,904,073$

Excess of Revenues Over (Under)

Expenditures 6,211,466$ 21,992,915$ 11,164,652$ 14,216,958$ 17,448,458$

Other Financing Sources (Uses):

Operating Transfers In 20,000 198,937 20,000 76,818 29,546

Operating Transfers Out (9,360,758) (13,432,751) (11,846,681) (12,365,705) (12,713,988)

Total Other Financing (9,340,758) (13,233,814) (11,826,681) (12,288,887) (12,684,442)

Excess of Revenues and Other

Sources Over (Under) Expenditures

and Other Uses (3,129,292) 8,759,101 (662,029) 1,928,071 4,764,016

FUND BALANCE

Fund Balance - Beginning of Year 16,670,464 13,541,172 22,300,273 21,638,244 23,566,315

Prior Period Adjustments (net) - - - - -

Fund Balance - End of Year 13,541,172$ 22,300,273$ 21,638,244$ 23,566,315$ 28,330,331$

Source: Audited financial reports of the County. This Appendix is not itself audited.

GENERAL FUND

Revenues, Expenditures and Changes in Fund Balance

(1) Significant increase from prior year due to a one-time distribution of $11 million from New York State in accordance with a Settlement Agreement

between the Oneida Indian Nation, New York State and counties of Oneida and Madison. The Settlement Agreement also resulted in an additional $3.5

million payment in 2014. The County anticipates receiving $3.5 million annually in perpetuity.

APPENDIX - A2

Madison County

Fiscal Years Ending December 31: 2019 2020

Original Budget Adopted Adopted

Budget Amended Actual Budget Budget

REVENUES

Real Property Taxes 37,754,090$ 37,754,090$ 37,859,171$ 37,891,830$ 39,689,672$

Real Property Tax Items 1,300,000 1,300,000 1,164,612 1,255,000 1,261,000

Non-Property Tax Items 26,080,000 27,891,626 29,804,661 29,610,000 31,025,000

Departmental Income 5,982,310 6,101,877 5,991,298 6,178,555 6,188,829

Intergovernmental Charges 213,800 213,800 210,175 424,000 419,150

Use of Money & Property 112,854 112,854 227,108 136,006 293,506

Licenses and Permits 20,000 20,000 10,160 20,000 20,000

Fines and Forfeitures 126,750 126,750 81,629 160,800 167,800

Sale of Property and -

Compensation for Loss 891,328 908,564 1,095,987 1,018,367 830,750

Miscellaneous 1,558,800 2,205,563 1,793,370 1,670,769 331,552

Interfund Revenues 2,068,861 2,090,292 62,213 2,058,665 1,753,153

Revenues from State Sources 14,443,943 19,130,365 17,303,353 15,655,385 16,331,747

Revenues from Federal Sources 7,295,643 8,018,349 7,042,919 7,158,902 7,148,359

Total Revenues 97,848,379$ 105,874,130$ 102,646,656$ 103,238,279$ 105,460,518$

EXPENDITURES

General Government Support 25,877,287$ 30,035,788$ 27,261,593$ 28,330,345$ 30,305,748$

Education 4,963,268 5,566,806 5,184,639 5,492,054 5,633,339

Public Safety 16,632,087 18,235,227 16,546,125 18,178,340 19,216,106

Health 7,686,537 7,974,712 7,160,341 7,716,721 7,458,032

Transportation 344,000 1,094,000 333,925 997,890 400,470

Economic Assistance and

Opportunity 31,210,103 31,390,185 28,771,240 31,611,496 32,599,348

Culture and Recreation 771,691 989,597 1,032,619 824,189 850,135

Home and Community Services 1,418,314 1,925,850 1,731,494 1,508,217 1,550,744

Employee Benefits 1,579,322 1,793,601 2,165,754 1,135,596 1,261,952

Total Expenditures 90,482,609$ 99,005,766$ 90,187,730$ 95,794,848$ 99,275,874$

Excess of Revenues Over (Under)

Expenditures 7,365,770$ 6,868,364$ 12,458,926$ 7,443,431$ 6,184,644$

Other Financing Sources (Uses):

Appropriation of Reserves - - - 450,000 375,940

Operating Transfers In - 62,131 62,131 - -

Operating Transfers Out (12,742,920) (13,355,246) (13,584,730) (13,507,559) (13,280,101)

Total Other Financing (12,742,920) (13,293,115) (13,522,599) (13,057,559) (12,904,161)

Excess of Revenues and Other

Sources Over (Under) Expenditures

and Other Uses (5,377,150) (6,424,751) (1,063,673) (5,614,128) (6,719,517)

FUND BALANCE

Fund Balance - Beginning of Year 5,377,150 6,424,751 28,330,331 - -

Prior Period Adjustments (net) - - - - -

Fund Balance - End of Year -$ -$ 27,266,658$ -$ -$

Source: Audited financial report and budgets of the County. This Appendix is not itself audited.

Revenues, Expenditures and Changes in Fund Balance - Budget and Actual

2018

GENERAL FUND

APPENDIX - A3

Madison County

Fiscal Years Ending December 31: 2014 2015 2016 2017 2018

COUNTY ROAD FUND

Fund Equity - Beginning of Year 3,193,944$ 5,380,201$ 5,330,843$ 3,873,093$ 1,001,746$

Prior Period Adjustments (net) - - - - -

Revenues & Other Sources 15,345,687 11,908,253 12,087,173 12,642,253 14,321,553

Expenditures & Other Uses 13,159,430 11,957,611 13,544,923 15,513,600 14,240,499

Fund Equity - End of Year 5,380,201$ 5,330,843$ 3,873,093$ 1,001,746$ 1,082,800$

SEWER FUND

Fund Equity - Beginning of Year 999,527$ 1,029,329$ 682,292$ 766,761$ 792,282$

Prior Period Adjustments (net) - - - - -

Revenues & Other Sources 499,217 469,806 3,494,169 515,085 399

Expenditures & Other Uses 469,415 816,843 468,672 489,564 792,681

Fund Equity - End of Year 1,029,329$ 682,292$ 766,761$ 792,282$ -$

DEBT SERVICE FUND

Fund Equity - Beginning of Year -$ 1$ 15,538$ 514,795$ 560,239$

Prior Period Adjustments (net) - - - - -

Revenues & Other Sources 2,077,615 2,089,447 2,683,668 2,337,932 2,379,176

Expenditures & Other Uses 2,077,615 2,073,910 2,184,411 2,292,488 2,395,040

Fund Equity - End of Year -$ 15,538$ 514,795$ 560,239$ 544,375$

Source: Annual and Audited financial reports of the County. This Appendix is not itself audited.

Changes In Fund Equity

APPENDIX - B

Madison County

Fiscal Year

Ending

December 31st Principal Interest Total

2020 $2,279,000 $199,819.75 $2,478,819.75

2021 339,000 141,618.75 480,618.75

2022 346,687 134,568.75 481,255.75

2023 359,000 127,218.75 486,218.75

2024 364,000 119,643.75 483,643.75

2025 374,000 111,843.75 485,843.75

2026 384,000 103,743.75 487,743.75

2027 389,000 95,418.75 484,418.75

2028 399,000 86,868.75 485,868.75

2029 409,000 78,018.75 487,018.75

2030 419,000 68,868.75 487,868.75

2031 429,000 59,418.75 488,418.75

2032 444,000 49,593.75 493,593.75

2033 454,000 39,393.75 493,393.75

2034 464,000 28,671.88 492,671.88

2035 474,000 17,421.88 491,421.88

2036 484,000 5,859.38 489,859.38

2037 109,000 0.00 109,000.00

2038 109,000 0.00 109,000.00

2039 109,000 0.00 109,000.00

2040 109,000 0.00 109,000.00

2041 109,000 0.00 109,000.00

2042 109,000 0.00 109,000.00

2043 109,000 0.00 109,000.00

2044 109,000 0.00 109,000.00

2045 109,000 0.00 109,000.00

2046 109,000 0.00 109,000.00

2047 109,000 0.00 109,000.00

2048 109,000 0.00 109,000.00

TOTALS $10,118,687 $1,467,991.64 $11,586,678.64

Note: The County issued bonds through the Municipal Bond Bank Agency was part

of the ARRA program. The interest shown above is the gross interest and does not

account for the federal subsidy.

BONDED DEBT SERVICE

APPENDIX – C

COUNTY OF MADISON

NEW YORK

FINANCIAL REPORT

For the Year Ended December 31, 2018

Such Audited Financial Statement and opinion were prepared as of date thereof and have not been reviewed and/or

updated in connection with the preparation and dissemination of this Official Statement.

COUNTY OF MADISON, NEW YORK

Financial Statements as of December 31, 2018

Together with Independent Auditor's Report, Reports Required by the Uniform Guidance and

Government Auditing Standards

TABLE OF CONTENTS

Page

1 ‐ 4

5 ‐ 11

12

13

14

15

16

17

18

19

20

21

22 ‐53

54

55

56

57

Supplemental Schedules:

58

59

60

61

Combining Balance Sheet ‐ Nonmajor Governmental Funds

Combining Statement of Changes in Revenues, Expenditures and Change in Fund 

Balances ‐ Nonmajor Governmental Funds

Combining Balance Sheet ‐ Nonmajor Special Revenue Funds

Combining Statement of Revenues, Expenditures and Change in Fund Balances ‐ 

Nonmajor Special Revenue Funds

Required Supplementary Information (Unaudited):

Statement of Revenues, Expenditures and Change in Fund Balance ‐ Budget and 

Actual ‐ General Fund 

Schedule of Changes in Total OPEB Liability and Related Ratios

Schedule of Proportionate Share of Net Pension Liability 

Schedule of Contributions ‐ Pension Plans

Statement of Revenues, Expenses and Change in Net Position

Statement of Cash Flows

Fiduciary Funds 

Statement of Fiduciary Net Position 

Notes to Basic Financial Statements

Government‐Wide Financial Statements‐

Fund Financial Statements ‐ 

Reconciliation of the Balance Sheet ‐ Governmental Funds to the Statement of Net 

Position 

County of Madison, New York

Independent Auditor’s Report

Management’s Discussion and Analysis (Unaudited)

Basic Financial Statements:

Statement of Net Position

Reconciliation of the Statement of Revenues, Expenditures and Change in Fund 

Balances ‐ Governmental Funds to the Statement of Activities 

Proprietary Funds

Statement of Net Position

Statement of Activities

Balance Sheet ‐ Governmental Funds 

Statement of Revenues, Expenditures and Change in Fund Balances ‐ 

Governmental Funds 

TABLE OF CONTENTS

Page

County of Madison, New York

62 ‐ 63

64 ‐ 65

66 ‐ 67

68

69

Reports Required Under Uniform Guidance:

Independent Auditor's Report on Compliance for Each Major Program and on Internal 

Control Over Compliance Required by the Uniform Guidance 

Schedule of Expenditures of Federal Awards ‐ For the Year Ended December 31, 2018

Notes to the Schedule of Expenditures of Federal Awards 

Schedule of Findings and Questioned Costs ‐ For the Year Ended December 31, 2018

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

INDEPENDENT AUDITOR’S REPORT

To the Board of Supervisors of theCounty of Madison, New York

July 31, 2019

We have audited the accompanying financial statements of the governmentalactivities, the business-type activities, the aggregate discretely presented componentunit, each major fund, and the aggregate remaining fund information of the County ofMadison, New York (the County), as of and for the year ended December 31, 2018,and the related notes to the financial statements, which collectively comprise theCounty’s basic financial statements as listed in the table of contents. We did notaudit the financial statements of the aggregate discretely presented component unit,which represents 100% of the assets, net position and revenues of the discretelypresented component unit.

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

Auditor’s Responsibility

Management’s Responsibility for the Financial Statements

Our responsibility is to express opinions on these financial statements based on ouraudit. We did not audit the financial statements of the Madison County IndustrialDevelopment Agency (IDA), which represents 100% of the assets, net position andrevenues of the aggregate discretely presented component unit. Those statementswere audited by other auditors whose reports have been furnished to us, and ouropinion, insofar as it relates to the amounts included for the IDA, are based solely onthe reports of the other auditors. We conducted our audit in accordance withauditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

Report on the Financial Statements

432 North Franklin Street, #60 Syracuse, New York 13204

p (315) 476-4004f (315) 254-2384

www.bonadio.com

ALBANY • BATAVIA • BUFFALO • DALLAS • EAST AURORA • NY METRO AREA • ROCHESTER • RUTLAND • SYRACUSE • UTICA1

As described in Notes 1 and 11 to the financial statements, the County adopted new accountingguidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefitsother than Pensions - an amendment of GASB 45 . As a result, a net adjustment was made to decreasenet position of governmental activities at January 1, 2018 by $17,751,899 and to decrease net position ofbusiness-type activies and the Environmental Landfill Fund by $849,847. Our opinions are not modifiedwith respect to this matter.

Emphasis of Matter - Change in Accounting Principle

Emphasis of Matter - Transfer of Sewer District Treatment PlantAs described in Note 18 to the financial statements, the County transferred operations of the MadisonCounty Sewer District Treatment Plant on January 1, 2018. A special item has been recognized as of andfor the year ending December 31, 2018 in accordance with Governmental Accounting Standards Board(GASB) Statement No. 69, Government Combinations and Disposals of Government Operations . Ouropinions are not modified with respect to this matter.

INDEPENDENT AUDITOR’S REPORT

OpinionsIn our opinion, based on our audit and the reports of other auditors, the financial statements referred toabove present fairly, in all material respects, the respective financial position of the governmentalactivities, the business-type activities, the aggregate discretely presented component unit, each majorfund, and the aggregate remaining fund information of the County of Madison, New York as of December31, 2018, and the respective changes in financial position and, where applicable, cash flows thereof forthe year then ended in accordance with accounting principles generally accepted in the United States ofAmerica.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessof the entity’s internal control. Accordingly, we express no such opinion. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of significantaccounting estimates made by management, as well as evaluating the overall presentation of thefinancial statements.

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

2

Accounting principles generally accepted in the United States of America require that the management’sdiscussion and analysis, budgetary comparison information, Schedule of Changes in Total OPEB Liabilityand Related Ratios, Schedule of Proportionate Share of Net Pension Liability, and Schedule ofContributions – Pension Plans be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the GovernmentalAccounting Standards Board, who considers it to be an essential part of financial reporting for placing thebasic financial statements in an appropriate operational, economic, or historical context. We and theother auditors have applied certain limited procedures to the required supplementary information inaccordance with auditing standards generally accepted in the United States of America, which consistedof inquiries of management about the methods of preparing the information and comparing theinformation for consistency with management’s responses to our inquiries, the basic financialstatements, and other knowledge we obtained during our audit of the basic financial statements. We donot express an opinion or provide any assurance on the information because the limited procedures donot provide us with sufficient evidence to express an opinion or provide any assurance.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the County’s basic financial statements. The combining and nonmajor governmental andspecial revenue fund financial statements are presented for purposes of additional analysis and are not arequired part of the basic financial statements.

Required Supplementary Information

INDEPENDENT AUDITOR’S REPORT

Other Matters

Other Information

The combining and nonmajor governmental and special revenue fund financial statements are theresponsibility of management and were derived from and relate directly to the underlying accountingand other records used to prepare the basic financial statements. Such information has been subjectedto the auditing procedures applied in the audit of the basic financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlying accountingand other records used to prepare the basic financial statements or to the basic financial statementsthemselves, and other additional procedures in accordance with auditing standards generally accepted inthe United States of America by us and other auditors. In our opinion, the combining nonmajorgovernmental and special revenue fund financial statements are fairly stated, in all material respects, inrelation to the basic financial statements as a whole.

3

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated July 31, 2019,on our consideration of the County’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is solely to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on theeffectiveness of the County’s internal control over financial reporting or on compliance. That report is anintegral part of an audit performed in accordance with Government Auditing Standards in consideringthe County‘s internal control over financial reporting and compliance.

INDEPENDENT AUDITOR’S REPORT

Report on the Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, theaggregate discretely presented component unit, each major fund, and the aggregate remaining fundinformation of the County of Madison, New York (the County) as of and for the year ended December 31,2018, and the related notes to the financial statements, which collectively comprise the County’s basicfinancial statements. We issued our report thereon dated July 31, 2019, which contained unmodifiedopinions on those financial statements. Our audit was conducted for the purpose of forming opinions onthe financial statements that collectively comprise the basic financial statements. The accompanyingschedule of expenditures of federal awards is presented for purposes of additional analysis as requiredby the Uniform Guidance and is not a required part of the basic financial statements. Such information isthe responsibility of management and was derived from and relates directly to the underlying accountingand other records used to prepare the basic financial statements. The information has been subjected tothe auditing procedures applied in the audit of the financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlying accountingand other records used to prepare the basic financial statements or to the basic financial statementsthemselves, and other additional procedures in accordance with auditing standards generally accepted inthe United States of America. In our opinion, the schedule of expenditures of federal awards is fairlystated in all material respects in relation to the basic financial statements as a whole.

4

Management’s Discussion and Analysis (Unaudited)

COUNTY OF MADISON, NEW YORK

As management of the County of Madison, New York (the County), we offer readers of the County’s financialstatements this narrative overview and analysis of the financial activities of the County as of and for the fiscal yearended December 31, 2018.

OVERVIEW OF THE FINANCIAL STATEMENTS

Government-Wide Financial Statements

This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. TheCounty’s basic financial statements are comprised of three components: 1) government-wide financial statements,2) fund financial statements, and 3) notes to the financial statements. This report also contains supplementaryinformation in addition to the basic financial statements.

The government-wide financial statements are designed to provide readers with a broad overview of the County’sfinances, in a manner similar to a private sector business.

The Statement of Net Position presents information on all of the County’s assets and liabilities with the differencebetween the two reported as net position. Over time, increases or decreases in net position may serve as a usefulindicator of whether the financial position of the County is improving or deteriorating.

The Statement of Activities presents information showing how the government’s net position changed during themost recent year. All changes in net position are reported as soon as the underlying event giving rise to the changeoccurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statementfor some items that will result in cash flows in future fiscal periods such as uncollected taxes and earned but unusedvacation leave.

Fund Financial StatementsA fund is a grouping of related accounts that is used to maintain control over resources that have been segregatedfor specific activities or objectives. The County, like other state and local governments, uses fund accounting toensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can bedivided into three categories: governmental funds, proprietary funds, and fiduciary funds.

5

Management’s Discussion and Analysis (Unaudited)

COUNTY OF MADISON, NEW YORK

•

••

Governmental FundsGovernmental funds are used to account for essentially the same functions reported as governmental activitiesin the government-wide financial statements. However, unlike the government-wide financial statements,governmental fund financial statements focus on near term inflows and outflows of spendable resources, aswell as on balances of spendable resources available at the end of the fiscal year. Such information may beuseful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements,it is useful to compare the information presented for governmental funds with similar information presentedfor governmental activities in the government-wide financial statements. By doing so, readers may betterunderstand the long-term impact of the government’s near-term financing decisions. Both the governmentalfund balance sheet and the governmental fund statement of revenues, expenditures and changes in fundbalances provide a reconciliation to facilitate this comparison between governmental funds and governmentalactivities.

Proprietary FundsEnterprise Funds - account for those operations that are financed and operated in a manner similar toprivate business. The County’s major enterprise fund is the Environmental Landfill Fund, while the theWorker’s Compensation Fund is a non-major enterprise fund.

Notes to Financial StatementsThe notes provide additional information that is essential to a full understanding of the data provided in thegovernment-wide and fund financial statements.

Component Units The government-wide financial statements include the primary government, the County, as well as its componentunit, the Madison County Industrial Development Agency. Financial information for this entity is reported separatelyfrom the financial information presented for the primary government itself.

The County maintains nine individual governmental funds. Information is presented separately in the governmentalfund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fundbalances for the General, County Road and the Capital Projects Funds, which are considered to be major funds. Datafrom the other six governmental funds are combined into a single, aggregated presentation. Individual fund data foreach of these nonmajor governmental funds is provided in the form of combining statements in the SupplementaryInformation section of the financial statements.

6

Management’s Discussion and Analysis (Unaudited)

COUNTY OF MADISON, NEW YORK

Governmental 2018

Business-Type 2018

Governmental 2017

Business-Type 2017

(restated) (restated)

59,889,769$ 10,450,817$ 56,220,348$ 8,502,510$ 130,345,597 13,995,771 117,442,907 14,730,347

190,235,366 24,446,588 173,663,255 23,232,857

23,023,663 853,841 11,084,459 458,331

41,283,516 2,536,797 22,922,539 5,363,755 93,587,213 18,438,054 94,487,438 13,843,374

134,870,729 20,974,851 117,409,977 19,207,129

15,140,048 1,381,086 3,823,067 113,930

104,891,929 6,754,771 103,918,308 7,903,410 8,156,491 947,490 7,728,101 978,006

(49,800,168) (4,757,769) (48,131,739) (4,511,287)

63,248,252$ 2,944,492$ 63,514,670$ 4,370,129$

Table 1 – Summary Statement of Net Position

Total assets increased by $17,785,842 mostly due to changes in capital assets. More specifically our Courthousecontruction in progress increased this year. Total liabilities increased by $19,228,474 mostly due to our BAN issuancethat was 14 million dollars. Total net position decreased by $1.6 million at December 31, 2018 due to the changesdescribed above offset by the increased in deferred outflows associated with long-term pension obligations.

Net investment in capital assetsRestrictedUnrestricted

Total net position

Total liabilities

Deferred inflows of resources

Net Position:

Liabilities:Current liabilities

Net position may serve over time as a useful indicator of a government’s financial position. In the case of theCounty, assets/deferred outflow of resources of the County’s governmental activities exceeded liabilities/deferredinflow of resources by $63,248,252 at the close of 2018.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Assets:Current assets Capital assets, net

Total assets

Deferred outflows of resources

Long-term liabilities

7

Management’s Discussion and Analysis (Unaudited)

COUNTY OF MADISON, NEW YORK

Governmental 2018

Business-Type 2018

Governmental 2017

Business-Type 2017

7,768,671$ 5,620,769$ 9,300,853$ 5,773,054$

23,572,806 - 24,659,272 - 2,272,762 - 1,881,338 -

- 69,317,660 - 69,628,299 -

851,903 - 786,694 - 33,946 - 42,064 -

3,500,000 - 3,500,000 -

2,250,000 - 2,250,000 - 253,540 - 239,566 -

- 599,643 - 582,038 188,635 55,425 133,806 18,006

- 18,838 - 32,368 1,752,761 1,288 - 52,298

(3,614,732) - - -

108,147,952 6,295,963 112,421,892 6,457,764 Total revenue

Operating grants and contributions

Sale of property and compensation loss

Capital grants and contributionsGeneral revenue:

Taxes and other tax itemsTobacco settlementOff-track betting

OIN reacquired land payment

OIN State aid – tribal compactOIN State aid – host community benefit

Use of money and property State aid - landfill Miscellaneous local sources Special item

Revenues Program revenue:

Charges for services

Table 2 – Summary Statement of Activities

See the Summary Statement of Activities (Table 2) below for a comparative look at the governmental and business-type activities from 2017 to 2018.

8

Management’s Discussion and Analysis (Unaudited)

COUNTY OF MADISON, NEW YORK

Governmental 2018

Business-Type 2018

Governmental 2017

Business-Type 2017

26,977,981 - 29,168,083 - 5,243,009 - 5,059,363 -

19,555,790 - 19,301,824 - 7,856,105 - 7,931,644 -

14,470,463 - 18,826,048 -

30,765,018 - 30,873,117 - 1,078,669 - 827,452 - 2,128,874 - 3,001,138 -

338,461 - 398,943 - - 6,693,602 - 4,991,923 - 1,027,998 - 1,556,812

108,414,370 7,721,600 115,387,612 6,548,735

(266,418)$ (1,425,637)$ (2,965,720)$ (90,971)$

•

•

•

•

••

Interfund Transfers

Revenues were originally budgeted at $98,323,379 while actual was $104,567,173. Over budget was theresult of host community benefits and sales tax.

Expenditures were originally budgeted at $103,225,529 while the actual was $105,630,852.

Transfers In were less than $15,000 and equaled the modified budget. Transfers Out were $14,000 more than the modified budget.

Expenses increased $1.1 million due to new reporting requirements for the Post Closer for our Landfill.

GENERAL FUND FINANCIAL ANALYSIS

General Fund Budget Analysis

Revenues

Expenditures

Public safety Public health Transportation Economic assistance and opportunityCulture and recreation

Expenses

Education General governmental support

Governmental Activities

Business-Type Activities

Total expenses

Change in net positon

Home and community services Interest on long-term debt Environmental landfillWorker’s compensation

Revenues decreased approximately $4.2 Million in the current year mostly due to transfer ownership of the Sewer to the Town of Cazenovia Sewer District Treatment Plant.

9

Management’s Discussion and Analysis (Unaudited)

COUNTY OF MADISON, NEW YORK

Governmental 2018

Business-Type 2018

Governmental 2017

Business-Type 2017

2,236,271$ 715,031$ 1,361,272$ 715,031$ 28,257,898 3,375,149 13,542,776 7,807,030 32,781,762 1,467,936 35,682,223 1,467,936

2,363,409 15,875,300 2,455,472 11,443,419 155,066,141 1,197,446 153,019,444 1,197,446

28,105,888 5,339,395 29,671,958 5,355,230

248,811,369 27,970,257 235,733,145 27,986,092 (118,465,772) (13,974,486) (118,290,238) (13,255,745)

130,345,597$ 13,995,771$ 117,442,907$ 14,730,347$

Governmental Activities:

During 2018, buildings increased by 2,900,461 and contrucrion in progress increased by $14,715,122, as a result ofour Courthouse that were not completed until 2019. Machinery and equipment also decreased by $1,566,070.

Business-type Activities:

During 2018 construction in progress decreased by approximately $4,431,881 as a result of Landfill cells 8 and 9.

Total cost Accumulated depreciation

Total capital assets, net

Table 3 – Capital Assets – Governmental and Business-Type Activities (Net of Depreciation)

Buildings ImprovementsInfrastructure Machinery and equipment

Capital Assets and Debt Administration

Capital AssetsThe County’s investment in capital assets for its governmental activities as of December 31, 2018 amounted to$130,345,597 (net of accumulated depreciation). Net of accumulated depreciation in the business-type activities atDecember 31, 2018 is $13,995,771. This investment in capital assets includes land, buildings and systems,improvements, machinery and equipment, roads, highways and bridges.

Land Construction in progress

10

Management’s Discussion and Analysis (Unaudited)

COUNTY OF MADISON, NEW YORK

Governmental 2018

Business-Type 2018

Governmental 2017

Business-Type 2017

13,524,599$ 6,826,937$ 15,385,351$ 6,826,937$

17,965,000 - 4,000,000 - - 3,256,000 1,300,000 4,150,000

(6,035,931) - (7,160,752) (4,150,000)

25,453,668$ 10,082,937$ 13,524,599$ 6,826,937$

This financial report is designed to provide a general overview of the County’s finances for all those with an interestin the government’s finances. Questions concerning any of the information provided in this report or requests foradditional financial information should be addressed to the Finance & Payroll Office, 138 N. Court Street,Wampsville, New York 13163. Mailing address is P.O Box 575, Wampsville, NY 13163.

The unemployment rate for the County as of June 2019 is 3.7%, which compares to 4.6 for previous year. The NewYork State average is 4.5 % and the national unemployment rate is 3.9% as of July 2018 (Source: New York StateDepartment of Labor).

As of July 2019, the Consumer Price Index for the area has increased 21.6 % compared to the previous year. Thenational average for the same period has risen 2.1% (Source: Bureau of Labor Statistics).

General Fund unassigned fund balance amounted to $16,045,345 as of December 31, 2018. The County appropriated$5,614,128 for spending in the 2018 budget.

The tax levy increased by $144,740 to $37,898,830, for the tax year 2019. At December 31, 2018, the County had amaximum taxing power of $79,869,270 and had used 40.86% of its limit as compared with 40.32% for the previousyear.

Requests for Information

Ending outstanding debt

Table 4 –Debt Schedule

The County’s statutory debt limitation is $259,804,5708. The County has used 8.1% of its limitation at the end of2018, compared with 9.3% at the end of 2017.

Economic Factors and Future Trends

Beginning outstanding debt

Debt issuedShort Term Long Term

Scheduled debt payments

Debt Administration

11

COUNTY OF MADISON, NEW YORK

Statement of Net PositionDecember 31, 2018

Governmental Business-Type ComponentActivities Activities Total Unit

ASSETS

Cash and cash equivalents, unrestricted 21,761,385$ 8,807,042$ 30,568,427$ 1,436,819$ Cash and cash equivalents, restricted 7,452,504 947,490 8,399,994 - Taxes receivable, net 7,449,042 - 7,449,042 - Accounts receivable, net 2,960,031 460,432 3,420,463 - Loans receivable 314,351 - 314,351 - State and federal receivables 10,079,278 - 10,079,278 - Due from other funds 7,383,953 17,238 7,401,191 - Prepaid expense 1,234,774 154,845 1,389,619 - Inventories 1,254,451 63,770 1,318,221 - Capital assets, net 130,345,597 13,995,771 144,341,368 315,195

Total assets 190,235,366 24,446,588 214,681,954 1,752,014

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows - relating to pensions 13,357,872 542,099 13,899,971 - Deferred outflows - relating to OPEB 9,665,791 311,742 9,977,533 -

Total deferred outflows of resources 23,023,663 853,841 23,877,504 -

LIABILITIES

Accounts payable and other accrued liabilities 7,309,734 539,663 7,849,397 9,610 Due to other governments 13,798,290 - 13,798,290 - Bond anticipation notes 17,965,000 - 17,965,000 - Other liabilities 19,231 1,607,798 1,627,029 - Customer deposit payable - 12,000 12,000 - Due to other funds - 98,336 98,336 - Long-term liabilities -

Due within one year 2,191,261 279,000 2,470,261 - Due in more than one year 93,587,213 18,438,054 112,025,267 46,371

Total liabilities 134,870,729 20,974,851 155,845,580 55,981

DEFERRED INFLOWS OF RESOURCES

Deferred inflows - unearned revenue 978,962 806,391 1,785,353 - Deferred inflows - relating to pensions 14,161,086 574,695 14,735,781 -

Total deferred inflows of resources 15,140,048 1,381,086 16,521,134 -

NET POSITION

Net investment in capital assets 104,891,929 6,754,771 111,646,700 315,195 Restricted 8,156,491 947,490 9,103,981 376,501 Unrestricted (49,800,168) (4,757,769) (54,557,937) 1,004,337

Total net position 63,248,252$ 2,944,492$ 66,192,744$ 1,696,033$

Primary Government

The accompanying notes are an integral part of these statements

12

COUNTY OF MADISON, NEW YORK

Statement of ActivitiesFor the year ended December 31, 2018

Charges for Operating Grants Capital Grants Governmental Business-Type ComponentExpenses Services and Contributions and Contributions Activities Activities Total Unit

PRIMARY GOVERNMENT:Governmental activities -

General government support 26,977,981$ 2,222,782$ 542,296$ 4,474$ (24,208,429)$ -$ (24,208,429)$ Education 5,243,009 453,329 1,392,220 - (3,397,460) - (3,397,460) Public safety 19,555,790 517,072 1,000,706 815,549 (17,222,463) - (17,222,463) Public health 7,856,105 2,471,325 3,037,035 - (2,347,745) - (2,347,745) Transportation 14,470,463 1,224,149 4,144,714 1,452,739 (7,648,861) - (7,648,861) Economic assistance and opportunity 30,765,018 817,915 12,398,209 - (17,548,894) - (17,548,894) Culture and recreation 1,078,669 - 355,680 - (722,989) - (722,989) Home and community services 2,128,874 62,099 701,946 - (1,364,829) - (1,364,829) Interest on long-term debt 338,461 - - - (338,461) - (338,461)

Total governmental activities 108,414,370 7,768,671 23,572,806 2,272,762 (74,800,131) - (74,800,131)

Business-type activities -Environmental landfill 6,693,602 4,596,196 - - - (2,097,406) (2,097,406) Workers' Compensation Fund 1,027,998 1,024,573 - - - (3,425) (3,425)

Total business-type activities 7,721,600 5,620,769 - - - (2,100,831) (2,100,831)

Total primary government 116,135,970$ 13,389,440$ 23,572,806$ 2,272,762$ (74,800,131) (2,100,831) (76,900,962)

COMPONENT UNIT:Proprietary -

Madison County Industrial Development Agency 420,868$ 67,763$ 603,409$ -$ 250,304$

GENERAL REVENUES AND TRANSFERS:Taxes: Real property taxes and real property tax items 38,848,990 - 38,848,990 - Sales tax 29,186,228 - 29,186,228 - Other non-property tax items 1,282,442 - 1,282,442 - Tobacco settlement 851,903 - 851,903 - Off-track betting 33,946 - 33,946 - Oneida Indian Nation state aid tribal compact 3,500,000 - 3,500,000 - Oneida Indian Nation state aid host community benefit 2,250,000 - 2,250,000 - Oneida Indian Nation reacquired land payment 253,540 - 253,540 - Sale of property and compensation for loss - 599,643 599,643 - Use of money and property 188,635 55,425 244,060 2,331 State and federal aid - landfill - 18,838 18,838 - Miscellaneous local sources 1,752,761 1,288 1,754,049 - Special item (Note 18) (3,614,732) - (3,614,732) -

Total general revenues and transfers 74,533,713 675,194 75,208,907 2,331

CHANGE IN NET POSITION (266,418) (1,425,637) (1,692,055) 252,635

NET POSITION - beginning of year, previously stated 81,266,569 5,219,976 86,486,545 1,443,398

PRIOR PERIOD ADJUSTMENT (Note 1) (17,751,899) (849,847) (18,601,746) -

NET POSITION - beginning of year, as restated 63,514,670 4,370,129 67,884,799 1,443,398

NET POSITION - end of year 63,248,252$ 2,944,492$ 66,192,744$ 1,696,033$

The accompanying notes are an integral part of these statements

Net (Expense) Revenue and Changes in Net Position

Program Revenue Primary Government

Functions/Programs

13

COUNTY OF MADISON, NEW YORK

Balance Sheet - Governmental FundsDecember 31, 2018

Capital County Nonmajor TotalProjects Road Governmental Governmental

General Fund Fund Fund Funds Funds

ASSETS

Cash and cash equivalents, unrestricted 19,359,789$ 55,156$ 1,441,112$ 905,328$ 21,761,385$ Cash and cash equivalents, restricted 4,380,919 1,303,229 38,415 1,729,941 7,452,504 Taxes receivable, net 7,449,042 - - - 7,449,042 Accounts receivable, net 2,288,009 - 25,348 646,674 2,960,031 Loans receivable - - - 314,351 314,351 State and federal aid receivable 7,527,105 1,625,328 926,845 - 10,079,278 Due from other funds 9,181,026 1,905,149 79,881 296,498 11,462,554 Prepaid expenditures 1,091,685 - 116,372 26,717 1,234,774 Inventories 134,581 - 673,484 446,386 1,254,451

Total assets 51,412,156$ 4,888,862$ 3,301,457$ 4,365,895$ 63,968,370$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

LIABILITIES:4,908,396$ 1,940,566$ 325,163$ 135,609$ 7,309,734$

Due to other governments 13,798,290 - - - 13,798,290 Bond anticipation notes - 17,965,000 - - 17,965,000 Other liabilities 19,231 - - - 19,231 Due to other funds 2,003,339 - 1,893,491 181,771 4,078,601

Total liabilities 20,729,256 19,905,566 2,218,654 317,380 43,170,856

DEFERRED INFLOWS OF RESOURCES:Unearned revenue 3,416,242 - - 929,664 4,345,906

FUND BALANCES:Nonspendable 1,226,266 - 789,856 473,103 2,489,225 Restricted 4,380,919 1,240,405 38,415 2,496,752 8,156,491 Committed - - 254,532 304,534 559,066 Assigned 5,614,128 - - - 5,614,128 Unassigned 16,045,345 (16,257,109) - (155,538) (367,302)

Total fund balances 27,266,658 (15,016,704) 1,082,803 3,118,851 16,451,608

Total liabilities, deferred inflows of resources and fund balances 51,412,156$ 4,888,862$ 3,301,457$ 4,365,895$ 63,968,370$

Accounts payable and other accrued liabilities

The accompanying notes are an integral part of these statements

14

Total fund balances - governmental funds 16,451,608$

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 130,345,597

Certain revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures and therefore are unearned in the funds. 3,366,944

Long-term liabilities are not due in the current period and, therefore, are not reported in the funds. They are as follows:

Compensated absences (4,164,607) Bonds payable (5,075,000) Unamortized bond premium (83,638) Installment purchase debt (2,413,668) Net pension liability (4,000,275) Other postemployment benefits (80,041,286)

Deferred outflows/inflows of resources related to pensions and OPEB are applicable to future periods and; therefore are not reported in the funds.

Deferred outflow - pension related 13,357,872 Deferred outflow - OPEB related 9,665,791 Deferred inflow - pension related (14,161,086)

Total net position of governmental activities 63,248,252$

COUNTY OF MADISON, NEW YORK

Reconciliation of the Balance Sheet - Governmental FundsTo the Statement of Net PositionDecember 31, 2018

The accompanying notes are an integral part of these statements15

COUNTY OF MADISON, NEW YORK

Statement of Revenues, Expenditures and Change in Fund Balances - Governmental Funds

Capital County Nonmajor TotalProjects Road Governmental Governmental

General Fund Fund Fund Funds Funds

REVENUES:Real property taxes 37,859,171$ -$ -$ 7,000$ 37,866,171$ Real property tax items 1,164,612 - - - 1,164,612 Non-property tax items 29,804,661 - - - 29,804,661 Departmental income 5,991,298 - 664,008 57,649 6,712,955 Intergovernmental charges 210,175 - 1,074,533 13,979 1,298,687 Use of money and property 227,108 1,058 1,297 10,954 240,417 Licenses and permits 10,160 - - - 10,160 Fines and forfeitures 81,629 - - - 81,629 Sale of property and compensation for loss 1,095,987 - 5,164 132,631 1,233,782 Miscellaneous local sources 1,793,370 159 26,947 17,810 1,838,286 Interfund revenues 62,213 - 44,661 716,272 823,146 State aid 17,303,353 1,047,789 3,833,182 155,323 22,339,647 Federal aid 7,042,919 1,452,740 106,869 653,393 9,255,921

102,646,656 2,501,746 5,756,661 1,765,011 112,670,074

EXPENDITURES:Current -

General governmental support 27,261,593 10,636,277 - - 37,897,870 Education 5,184,639 - - - 5,184,639 Public safety 16,546,125 1,160,815 - 11,754 17,718,694 Public health 7,160,341 - - - 7,160,341 Transportation 333,925 1,670,466 12,297,181 2,761,629 17,063,201 Economic assistance and opportunity 28,771,240 52,581 - 636,298 29,460,119 Culture and recreation 1,032,619 - - - 1,032,619 Home and community services 1,731,494 90,850 - 416,881 2,239,225 Employee benefits 2,165,754 - 1,866,304 189,995 4,222,053

Debt service -Principal - - - 2,035,931 2,035,931 Interest - 40,800 - 359,109 399,909

Total expenditures 90,187,730 13,651,789 14,163,485 6,411,597 124,414,601

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 12,458,926 (11,150,043) (8,406,824) (4,646,586) (11,744,527)

Premiums on bond anticipation note issuance - 97,580 - - 97,580 Operating transfers - in 62,131 1,153,826 8,564,897 3,955,023 13,735,877 Operating transfers - out (13,584,730) - (77,016) (74,131) (13,735,877) Special item (Note 18) - - - (792,681) (792,681)

Total other financing sources (uses) (13,522,599) 1,251,406 8,487,881 3,088,211 (695,101)

(1,063,673) (9,898,637) 81,057 (1,558,375) (12,439,628)

28,330,331 (5,118,067) 1,001,746 4,677,226 28,891,236

27,266,658$ (15,016,704)$ 1,082,803$ 3,118,851$ 16,451,608$ FUND BALANCE - end of year

The accompanying notes are an integral part of these statements

For the year ended December 31, 2018

Total revenues

OTHER FINANCING SOURCES (USES):

CHANGE IN FUND BALANCE

FUND BALANCE - beginning of year

16

Net change in fund balances - governmental funds (12,439,628)$

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

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the statement of activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period. Capital outlays 22,210,443 Depreciation (6,228,181) 15,982,262

Losses from the disposition of capital assets are not recorded on the fund financial statements but are recorded on the government-wide financial statements. (3,079,572)

Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds. (181,824)

Principal payments on debt service are reported as an expenditure in the governmental funds, and therefore reduces fund balance because current financial resources have been used. These payments are not an expense in the statement of activities. 2,035,931

Premiums on bonds are recorded as revenue at the fund level but recorded in debt on the statement of net position and amortized in the statement of activities. This amount represents the net current year effect. 61,448

Compensated absences are reported in the statement of activities, but do not require the use of current financial resources and, therefore, these are not reported as expenditures in governmental funds. This represents the current year change. (144,994)

Other postemployment benefits liability and associated deferred outflows are included in the statement of activities, but are not reported as expenditures in the governmental funds. The following represents the current year changes: Other postemployment benefits (9,893,156) Deferred outflows of resources 7,621,901

Net pension liability and associated deferred inflows and outflows are included in the statement of activities, but are not reported as expenditures in the governmental funds. The following represent the current year changes: Net pension liability 6,649,735 Deferred outflows of resources 4,317,303 Deferred inflows of resources (11,195,824)

Change in net position of governmental activities (266,418)$

The accompanying notes are an integral part of these statements

COUNTY OF MADISON, NEW YORK

Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances - Governmental Funds to the Statement of Activities For the year ended December 31, 2018

17

COUNTY OF MADISON, NEW YORK

Statement of Net Position - Proprietary FundsDecember 31, 2018

Environmental Workers'Landfill CompensationFund Fund Total

ASSETS

Cash and cash equivalents, unrestricted 6,500,424$ 2,306,618$ 8,807,042$ Cash and cash equivalents, restricted 947,490 - 947,490 Accounts receivable, net 460,432 - 460,432 Due from other funds 17,238 - 17,238 Prepaid expense 34,845 120,000 154,845 Inventories 63,770 - 63,770 Capital assets, net 13,995,771 - 13,995,771

Total assets 22,019,970 2,426,618 24,446,588

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows - relating to pensions 542,099 - 542,099 Deferred outflows - OPEB 311,742 - 311,742

Total deferred outflows of resources 853,841 - 853,841

LIABILITIES

Accounts payable and other accrued liabilities 527,234 12,429 539,663 Other liabilities - 1,607,798 1,607,798 Customer deposit payable 12,000 - 12,000 Due to other funds 98,336 - 98,336 Long-term liabilities -

Due within one year 279,000 - 279,000 Due in more than one year 18,438,054 - 18,438,054

Total liabilities 19,354,624 1,620,227 20,974,851

DEFERRED INFLOWS OF RESOURCES

Deferred inflows - unearned revenue - 806,391 806,391 Deferred inflows - relating to pensions 574,695 - 574,695

Total deferred inflows of resources 574,695 806,391 1,381,086

NET POSITION

Net investment in capital assets 6,754,771 - 6,754,771 Restricted 947,490 - 947,490 Unrestricted (4,757,769) - (4,757,769)

Total net position 2,944,492$ -$ 2,944,492$

Business Type Activities - Enterprise Funds

The accompanying notes are an integral part of these statements

18

COUNTY OF MADISON, NEW YORK

Statement of Revenues, Expenses and Change in Net Position -Proprietary FundsFor the year ended December 31, 2018

Environmental Workers'Landfill CompensationFund Fund Total

OPERATING REVENUES:

Charges for services 4,596,196$ 1,024,573$ 5,620,769$

Total operating revenues 4,596,196 1,024,573 5,620,769

OPERATING EXPENSES:Personal services 1,174,001 - 1,174,001 Employee benefits 505,274 - 505,274 Other postemployment benefit expense 135,951 - 135,951 Contractual expense 3,934,562 1,027,998 4,962,560 Depreciation 823,283 - 823,283

Total operating expenses 6,573,071 1,027,998 7,601,069

Operating income (loss) (1,976,875) (3,425) (1,980,300)

NON-OPERATING REVENUES (EXPENSES):Use of money and property 54,911 514 55,425 State and federal aid 18,838 - 18,838 Miscellaneous local sources 1,288 - 1,288 Sale of property and compensation for loss 599,643 - 599,643 Interest expense (120,531) - (120,531)

Total non-operating revenues 554,149 514 554,663

CHANGE IN NET POSITION (1,422,726) (2,911) (1,425,637)

NET POSITION - beginning of year, previously stated 5,217,065 2,911 5,219,976

PRIOR PERIOD ADJUSTMENT (Note 1) (849,847) - (849,847)

NET POSITION - beginning of year, as restated 4,367,218 2,911 4,370,129

NET POSITION - end of year 2,944,492$ -$ 2,944,492$

Business Type Activities - Enterprise Funds

The accompanying notes are an integral part of these statements

19

COUNTY OF MADISON, NEW YORK

Statement of Cash Flows - Proprietary FundsFor the year ended December 31, 2018

Business Type Activity - Enterprise Funds

Environmental Workers'Landfill CompensationFund Fund Total

CASH FLOW FROM OPERATING ACTIVITIES:Cash received from customers and users 4,679,627$ 1,830,964$ 6,510,591$ Cash payments for contractual services (1,848,844) (1,669,210) (3,518,054) Cash payments for salaries and benefits (1,691,005) - (1,691,005)

Net cash flow from operating activities 1,139,778 161,754 1,301,532

CASH FLOW FROM NON-CAPITAL FINANCING ACTIVITIES:Cash received from operating grants 27,959 - 27,959 Transfers from/(to) other funds (145,058) - (145,058)

Net cash flow from non-capital financing activities (117,099) - (117,099)

CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Proceeds of debt 579,063 - 579,063 Payments of debt (165,000) (165,000) Cash outlay for capital assets, net (96,067) (96,067) Sales of property and compensation for loss 599,643 - 599,643 Interest (120,531) - (120,531)

Net cash flow from capital and related financing activities 797,108 - 797,108

CASH FLOW FROM INVESTING ACTIVITIES:Cash received from interest and dividends 54,911 514 55,425

Net cash flow from investing activities 54,911 514 55,425

CHANGE IN CASH AND CASH EQUIVALENTS 1,874,698 162,268 2,036,966

CASH AND CASH EQUIVALENTS - beginning of year 5,573,216 2,144,350 7,717,566

CASH AND CASH EQUIVALENTS - end of year 7,447,914$ 2,306,618$ 9,754,532$

Cash and cash equivalents - unrestricted 6,500,424$ 2,306,618$ 8,807,042$ Cash and cash equivalents - restricted 947,490 - 947,490

Total cash and cash equivalents 7,447,914$ 2,306,618$ 9,754,532$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH USED BY OPERATING ACTIVITIES:

Operating income (loss) (1,976,875)$ (3,425)$ (1,980,300)$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities:

Depreciation expense 823,283 - 823,283 Loss on disposal of asset 7,360 - 7,360 Changes in:

Accounts receivable 83,431 - 83,431 Prepaid expense 3,688 - 3,688 Inventories 1,733 - 1,733 Deferred outflows of resources - pension (194,746) - (194,746) Deferred outflows of resources - OPEB (200,764) - (200,764) Accounts payable and other liabilities 349,223 (44,053) 305,170 Other liabilities - (597,159) (597,159) Other postemployment benefits 336,715 - 336,715 Net pension liability (246,848) - (246,848) Compensated absences (23,330) - (23,330) Landfill closure/post-closure 1,716,143 - 1,716,143 Deferred inflows of resources - unearned revenue - 806,391 806,391 Deferred inflows of resources - pension 460,765 - 460,765

Net cash flow from operating activities 1,139,778$ 161,754$ 1,301,532$

The accompanying notes are an integral part of these statements

20

COUNTY OF MADISON, NEW YORK

Statement of Fiduciary Net PositionDecember 31, 2018

AgencyFunds

ASSETS

Cash and cash equivalents 6,404,321$ Accounts receivable 1,908,718

Total assets 8,313,039$

LIABILITIES

Due to other funds 7,302,855$ Agency liabilities 1,010,184

8,313,039$ Total liabilities

The accompanying notes are an integral part of these statements

21

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting EntityThe County of Madison, New York (the County), which was incorporated in 1806, is governed by County Lawand other general laws of the State of New York and various local laws. The Board of Supervisors, which is thelegislative body responsible for the overall operations of the County, consists of nineteen members with eachmember’s vote weighted on the basis of population in the town or district represented. The Chairman of theBoard of Supervisors serves as the Chief Executive Officer. The County Treasurer serves as the Chief FiscalOfficer and Budget Officer.

The basic services provided are highway maintenance, social services, health services, public safety, culturaland recreational programs, and certain administrative and other services.

All governmental activities and functions performed for Madison County are its direct responsibility. No othergovernmental organizations have been included or excluded from the reporting entity.

The financial reporting entity consists of (a) the primary government which is Madison County, (b)organizations for which the primary government is financially accountable, and (c) other organizations forwhich the nature and significance of their relationship with the primary government are such that exclusionwould cause the reporting entity’s financial statements to be misleading or incomplete as set forth bystandards set by the Governmental Accounting Standards Board (GASB).

Component UnitsThe decision to include a potential component unit in the County’s reporting entity is based on several criteriaset forth by the GASB including legal standing, fiscal dependency, and financial accountability. Based on theapplication of these criteria, the following is a brief review of certain entities considered in determining theMadison County’s reporting entity.

The Madison County Industrial Development Agency (IDA or Agency) is a public benefit corporation created bythe State Legislature to promote the economic welfare, recreation opportunities, and property of theinhabitants of the County. Members of the Agency are appointed by the County Board of Supervisors and theCounty has the ability to impose its will and significantly influence the IDA. Agency members have completeresponsibility for management of the Agency and accountability for fiscal matters. The County is not liable forAgency bonds and exercises no oversight responsibility. The IDA is a component unit of the County, and isdiscretely presented.

Complete financial statements of the Madison County Industrial Development Agency may be obtained fromits administrative office:

Madison County Industrial Development Agency3215 Seneca TurnpikeCanastota, NY 13032

22

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

•

•

•

The effect of interfund activity has been removed from the government-wide financial statements.

Fund Financial StatementsThe emphasis in fund financial statements is on the major funds in either the governmental or business-type activities categories. Non-major funds by category are summarized into a single column. Generallyaccepted accounting principles sets forth minimum criteria (percentage of the assets/deferred outflows ofresources, liabilities/deferred inflows of resources, revenues or expenditures/expenses of either fundcategory or the governmental and enterprise combined) for the determination of major funds.

Governmental Funds - Governmental funds are those major and non-major funds through which mostgovernmental functions are financed. The acquisition, use and balances of expendable financialresources and the related liabilities are accounted for through governmental funds. The measurementfocus of the governmental funds is upon determination of financial position and changes in financialposition using the modified accrual basis of accounting. The following are the County’s governmentalfund types:

a) Major Governmental Funds:

General Fund - the principal operating fund and includes all operations not accounted for and reportedin another fund.

Capital Projects Fund - used to account for financial resources to be used for the acquisition,construction or renovation of capital facilities other than those financed by the enterprise funds.

Basis of Presentation Government-wide Financial StatementsThe government-wide financial statements (the Statement of Net Position and the Statement of Activities)concentrate on the County as a whole and do not emphasize fund types but rather governmental andbusiness-type activities classification, which are presented separately. The governmental activities andbusiness-type activities comprise the primary government and are reported separately from the discretelypresented component units of the County. General governmental and intergovernmental revenuessupport the governmental activities, whereas the business-type activities are primarily supported by userfees and charges for services.

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 tothose funds are not available to support the County’s own programs.

The Statement of Activities reflects the expenses of a given function or segment and the extent they areoffset by program revenue. Program revenue is defined as charges for services, operating grants andcontributions, and capital grants and contributions, directly associated within a given function. Taxes andother revenues not associated with a specific function are reported as general revenue.

23

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Water Fund - used to account for taxes or other revenues which are raised or received toprovide special services to an area that encompasses less than the entire County.

County Road Fund - special revenue fund used to account for expenditures for highway purposesauthorized by Section 114 of Highway Law.

b) Non-major Governmental Funds

Special Revenue Funds - used to account for taxes, user fees, or other revenues, which are raised orreceived to provide special services to areas that may or may not encompass the whole County. Thefollowing are non-major special revenue funds utilized by the County:

Community Development Fund - used to account for grants which are furnished by the USDepartment of Housing and Urban Development for various Community Development Projects.

Cowaselon Creek Watershed Protection District Fund - used to account for maintenance andpreservation of the Cowaselon Creek watershed district.

Law Enforcement Trust Fund - used to account for proceeds of drug activities that are seizedand/or forfeited and used solely for drug enforcement.

Road Machinery Fund - used to account for the purchase, repair, maintenance and storage ofhighway machinery, tools and equipment pursuant to Section 133 of the Highway Law.

Sewer District Fund - used to account for taxes or other revenues which are raised or receivedto provide special services to an area that encompasses less than the entire County.

Debt Service Fund - used to account for and report financial resources that are restricted, committed, orassigned to expenditure for principal and interest on general obligation long-term debt. Debt servicefunds are used when legally mandated and for financial resources accumulated in a reserve for paymentof future principal and interest on long-term indebtedness. The Debt Service Fund is presented as a non-major fund.

Other funds which do not meet the major fund criteria are aggregated and reported as non-majorgovernmental funds. The following are reported as non-major governmental funds:

24

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

•

a)

•

•

•

Agency Fund - used to account for money and/or property received and held in a purely custodial capacity of the trustee, custodian or agent.

Basis of Accounting/Measurement FocusAccrualThe government-wide, proprietary and fiduciary fund financial statements are reported using the economicresources measurement focus and the accrual basis of accounting. Revenues are recorded when earnedand expenses are recorded when liabilities are incurred, regardless of when the related cash transactiontakes place. Non-exchange transactions, in which the County gives or receives value without directlyreceiving or giving equal value in exchange, include property taxes, grants and donations. On an accrualbasis, revenue from property taxes is recognized in the fiscal year in which the taxes are levied. Revenuefrom grants and donations is recognized in the fiscal year in which all eligibility requirements have beensatisfied.

Modified AccrualThe governmental fund statements are reported using the current financial resources measurement focusand the modified accrual basis of accounting. Under this method, revenues are recognized when they aredeemed measurable and available. The County considers all revenues reported in the governmental fundsto be available if the revenues are collected within one year after the end of the fiscal year, except for realproperty taxes receivable, which use a 60-day available period.

Proprietary Funds - These funds are accounted for using the economic resources measurement focusand the accrual basis of accounting. Under this method, revenues are recorded when earned andexpenses are recorded when liabilities are incurred. Proprietary funds of the County include thefollowing fund type:

Enterprise Funds - used to account for those operations that are financed and operated in a mannersimilar to private business. The Enterprise Funds are:

Fiduciary Funds - The County’s fiduciary funds are presented in the fiduciary fund financial statementsby type (restricted purposes and agency). Since by definition these assets are being held for the benefitof a third-party (other local governments, private parties, etc.) and cannot be used to address activitiesor obligations of the government, these funds are not incorporated into the government-wide financialstatements. These funds are used to account for assets held by the local government in a trustee orcustodial capacity. The following is reported as the County’s fiduciary fund:

Environmental Landfill Fund - used to account for the financial activities of the County’s landfill. The Environmental Landfill Fund is recognized as a major fund.

Workers’ Compensation Fund - used to account for the financial activities of a Workers’ CompensationInsurance Public Entity Risk Pool. The Worker’s Compensation Fund is presented as a non-majorproprietary fund.

25

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaiditems in both the government-wide and fund financial statements, as applicable.

Prepaid Expense/Expenditures

Material revenues that are accrued include real property taxes, state and federal aid, distributed salestaxes, certain user charges, and some departmental fees. If expenditures are the prime factor fordetermining eligibility, revenues from federal and state grants are accrued when the expenditure is made.

Expenditures are recorded when incurred except that:

a) Expenditures for prepaid expenses and inventory-type items are recognized at the time of the disbursement.b) Principal and interest on indebtedness are not recognized as an expenditure until due and paid.c) Compensated absences, such as vacation and compensatory time which vests or accumulates, are charged as an expenditure when paid.

InventoriesThe County uses the purchase method of accounting for inventories. At the end of the period, material andsupplies inventories are taken and significant inventories are recorded as an asset with an offset to reserve forinventories referred to as nonspendable fund balance. Inventories are valued at cost using the first-in, first-out(FIFO) method.

Deferred Outflows/Inflows of ResourcesIn addition to assets and liabilities, the Statement of Net Position will sometimes report a separate section fordeferred outflows/inflows of resources. The separate financial statement element, deferred outflows ofresources, represents a use of resources that applies to a future period and so will be not recognized as anoutflow (expense/expenditure) until then. The separate financial statement element, deferred inflows ofresources, represents an acquisition of net position that applies to a future period and so will not berecognized as an inflow of resources (revenue) until then. Deferred inflows of resources in the General Fundrelate primarily to property taxes. In the governmental funds, deferred inflows of resources will also includeamounts related to unavailable revenue.

Long-Term ObligationsLong-term obligations represent the County’s future obligations or future economic outflows. The liabilitiesare reported as due in one year or due within more than one year in the government-wide statements.

d) Net pension liability is charged as an expenditure when paid.e) Other post-employment benefits are charged as an expenditure when paid.

State and Federal Receivables and Accounts Receivable These account includes reimbursement claims for various grant-in-aid programs from State and Federalagencies. Management does not believe an allowance for doubtful accounts is necessary.

26

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Personal Leave – Employees are granted from between three and five days personal leave each yeardepending on their contracts, coverage, and hiring date. At December 31 of each year, all unusedpersonal leave is converted to sick leave. Employees are not paid for the value of their unused personalleave credits upon termination.

Sick Leave – Employees are granted sick leave credits ranging from one-half day per month to one dayper month, depending on their contracts and hiring date. All covered employees are allowed toaccumulate up to 165 days of sick leave credits, except those in the White Collar Bargaining Unit andthose covered by the Management Compensation Plan, who are allowed to accumulate up to 200 daysof sick leave. Depending on contract and hiring date, employees are allowed to buy-back sick leavecredits. The buy-back of sick leave credits is limited to those days in excess of 100 days accumulatedand may not exceed 30 days of buy-back credits. In addition, the benefit buy-back is paid at 50% of theemployee's current hourly rate. Employees at termination, except those in the ManagementCompensation Plan, with at least 10 years of service, are compensated from a minimum of between 10and 20 days of accumulated sick leave and as many as between 20 and 60 days depending on contractand length of service.

Vacation Leave – Employees are granted vacation leave credits ranging from 10 days to 20 daysdepending on contract and years of service. The maximum accumulation per employee is 40 days. Fulltime employees, except those in the Nurses Bargaining Unit, may receive up to 30 days’ pay in lieu ofvacation time. Employees receive payment at termination from 10 days to 40 days of vacation leavecredits depending on contract and years of service.

Terminal Benefits – Most employees in the Management Compensation Plan receive additionaltermination benefits ranging from two weeks to ten weeks depending on years of service, up to amaximum of $15,000 upon termination for any reason except discharge.

Capital AssetsAll capitalized assets are reported at historical cost or estimated historical cost. Contributed assets arereported at fair market value as of the date received. Additions, improvements and other capital outlays thatsignificantly increase the useful life of an asset are capitalized. Other costs incurred for repairs andmaintenance are expensed as incurred. Capital assets are not reported in the governmental funds andadditions are recorded as expenditures.

Compensated AbsencesUnder the terms of the personnel policies and union contracts, County employees, other than elected officials,are granted personal, vacation and sick leave credits and may accumulate these credits as follows:

27

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

•

a)

b)

10-65 years5-30 years

Restricted net position - consists of net position with constraints placed on the use either by: 1) externalgroups such as creditors, grantors, contributors, or laws or regulations for other governments; or 2) lawthrough constitutional provisions or enabling legislation.

Machinery and Equipment

Threshold

Standard capitalization thresholds for capitalizing assets have been established for each major class of assetsas summarized below:

Machinery and Equipment

AllAll

Construction in ProgressBuildings (includes building improvements)Improvements (other than buildings)Infrastructure

LandUseful Life

Class of Asset

Asset Category

LandLand ImprovementsConstruction in ProgressBuildings (includes building improvements)Improvements (other than buildings)Infrastructure

Aggregate costs20,00010,00050,00010,000

Depreciation on all assets is provided on a straight-line basis over the following estimated useful lives:

Operating and Non-operating Revenues and ExpensesThe County distinguishes between operating revenues expenses from non-operating items. Operatingrevenues are comprised of charges for services while non-operating revenues include state and federal aid andmiscellaneous sources. Operating expenses are the result of operating the landfill and contractual charges inthe Workers Compensation Fund. Non-operating expenses include interest expense.

Equity Classifications

Government-Wide StatementsEquity is classified as net position and displayed in three components:

Net investment in capital assets - consists of capital assets including restricted capital assets, net ofaccumulated depreciation and reduced by the outstanding balances of any bonds, notes or otherborrowings that are attributable to the acquisition, construction, or improvement of those assets.

Not depreciableNot depreciable

25-50 years15-20 years

28

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

c)

•

•

•

•

•

•

These are amounts that can be used only for specific purposes determined by a formal action of theBoard of Supervisors prior to year-end. The Board of Supervisors is the highest level of decision-makingauthority for the County. Commitments may be established, modified, or rescinded only throughresolutions approved by the Board of Supervisors.

Assigned Fund BalancesThese are amounts that do not meet the criteria to be classified as restricted or committed but that areintended to be used for specific purposes, or positive remaining fund balance in a fund other thanGeneral Fund. It is at the discretion of the Board of Supervisors or its designee to make assignments asit sees fit. At December 31, 2018, assigned fund balance in the General Fund comprises $5,614,128 forappropriated amounts in the 2019 budget.

Unassigned Fund BalancesThese are amounts within the General Fund that do not meet the definition of the above fourclassifications and are deemed to be available for general use by the County. In addition, any remainingnegative fund balance for funds other than the General Fund is considered unassigned fund balance.

Unrestricted net position - all other net position that does not meet the definition of “restricted” or “netinvestment in capital assets”.

The County’s policy is to use restricted resources prior to utilizing unrestricted funds.

Fund StatementsAccounting standards generally accepted in the United States provides more clearly defined fund balancecategories to make the nature and extent of the constraints placed on a government’s fund balances moretransparent. The following classifications describe the relative strength of the spending constraints:

Nonspendable Fund BalancesThese are amounts that cannot be spent either because they are in nonspendable form or because theyare legally or contractually required to be maintained intact. Nonspendable fund balance is comprisedof prepaid assets and inventory.

Restricted Fund Balances These are amounts that can be spent only for specific purposes because of constitutional provisions orenabling legislation or because of constraints that are externally imposed by creditors, grantors,contributors, or the laws or regulations of other governments.

Committed Fund Balances

29

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Prior Period Adjustments

•

Long-term DeferredLiabilities Outflows Net Position

Governmental Activities:

50,352,341$ -$ 81,266,569$

19,795,789 - (19,795,789) - 2,043,890 2,043,890

Cumulative effect 19,795,789 2,043,890 (17,751,899)

As restated at, January 1, 2018 70,148,130$ 2,043,890$ 63,514,670$

Change in Accounting Principle - Governmental ActivitiesThe County adopted GASB Statement No. 75, Accounting and Financial Reporting for PostemploymentBenefits Other Than Pensions (OPEB). Statement No. 75 established standards for recognizing andmeasuring liabilities, deferred outflows of resources, deferred inflows of resources, andexpense/expenditures related to certain postemployment benefits. For defined benefit OPEB, thisStatement identifies the methods and assumptions that are required to be used to project benefitpayments, discount projected benefit payments to their actuarial present value, and attribute that presentvalue to periods of employee service.

Accordingly, beginning net position, other postemployment benefits liability and deferred outflows ofresources related to OPEB on the statement of net position were adjusted as noted in the tables below.

As previously reported, December 31, 2017

Adoption of GASB Statement No. 75 -

Recognition of deferred outflows of resources

When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available,the County considers amounts to have been spent first out of restricted funds, then committed funds, thenassigned funds, and finally unassigned funds, as needed, unless the Board of Supervisors has providedotherwise in its commitment or assignment actions.

EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in theUnited States requires management to make estimates and assumptions that affect the amounts reported inthe financial statements and accompanying notes. Actual results could differ from those estimates.

Increase to liability

30

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Long-term DeferredLiabilities Outflows Net Position

1,919,826$ -$ 5,219,976$

960,825 - (960,825) - 110,978 110,978

Cumulative effect 960,825 110,978 (849,847)

As restated at, January 1, 2018 2,880,651$ 110,978$ 4,370,129$

Long-term DeferredLiabilities Outflows Net Position

1,919,826$ -$ 5,217,065$

960,825 - (960,825) - 110,978 110,978

Cumulative effect 960,825 110,978 (849,847)

As restated at, January 1, 2018 2,880,651$ 110,978$ 4,367,218$

2.

Budget PoliciesThe County's budget policies are as follows:

No later than November 15, the Budget Officer submits a tentative budget to the Board of Supervisorsfor the fiscal year commencing the following January 1. The tentative budget includes proposedexpenditures and the proposed means of financing for the General, Part County Watershed ProtectionDistrict, County Road, Road Machinery, Enterprise Environmental Landfill, Part County Sewer District,and Debt Service funds.

(1)

Adoption of GASB Statement No. 75 -Increase to liabilityRecognition of deferred outflows of resources

STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Recognition of deferred outflows of resources

Business-type Activities:

Increase to liability

As previously reported, December 31, 2017

Adoption of GASB Statement No. 75 -

Environmental Landfill Fund:

As previously reported, December 31, 2017

(2) After public hearings are conducted to obtain taxpayer comments, the Board of Supervisors generallymakes, by resolution, modifications to the tentative budget and adopts the budget no later thanDecember 20.

31

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

3.

Appropriations in all budgeted funds lapse at the end of the fiscal year, except that outstandingencumbrances are re-apportioned in the subsequent year.

(3)

(4)

(5)

(6)

County real property taxes are levied annually, no later than December 31 of each year for the following fiscalyear, and become a tax lien on January 1. For fiscal year 2018, the County’s real property tax levy (for county-wide purposes) was $37,754,090 and the composite tax rate was $9.24674.

PROPERTY TAXES AND COLLECTION

Most modifications of the budget must be approved by the Board of Supervisors. The Board hasauthorized transfers of immaterial amounts within department budget line items by coordination of theCounty Administrator, Budget Officer, and the department head. Revisions that alter the totalappropriation of any department or fund are approved by resolution of the Board of Supervisors.

Budgetary controls are established for the Capital Projects Fund through resolutions establishing theprojects. These controls remain in effect throughout the life of the project.

A budget is prepared for the Enterprise Environmental Landfill Fund to establish the estimatedcontributions required from other funds and to control expenditures.

At December 31, 2018, the total real property taxes receivable was $7,449,042 (after deduction of anallowance for uncollectible taxes of $875,000).

Taxes are collected by the town tax collectors during the period January 1 to the expiration of their warrant,which is generally April 30. No later than May 10, the delinquent taxes are returned by the tax collectors tothe County Treasurer for the enforcement of the collection of the delinquent tax. Taxes for County purposesare levied together with taxes for town and special district purposes as a single tax bill. The towns and specialdistricts receive the full amount of their levies annually out of the first amounts collected on the combined taxbill. The collection of County taxes levied on properties within the City of Oneida is enforced by the City, andthe County receives the full amount of such taxes from the City within the year of the levy.

The County guarantees the real property tax levies of the towns, villages and school districts located within thecounty, except city school district taxes on property located within the City of Oneida. The County guaranteesthe Oneida City School District taxes in the towns of Lenox and Lincoln upon payment or tax foreclosure. AtDecember 31, 2018, the County reflected liabilities to the non-city school districts of $4,643,308, the cityschool district of $208,434 and the villages of $307,329, for amounts of real property taxes that the County had assumed responsibility for collecting. The County will pay the respective school districts and villages theamounts owed by April 1, and these are included in the amounts due to other governments in theaccompanying financial statements. Any such taxes remaining unpaid at year

‑

end are relevied as County taxeson December 31.

32

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

4.

11,966$ 39,638

7,964

5. SALES AND USE TAX

As of December 31, 2018, the County tax abatement programs include abatements on property taxes, salestaxes and mortgage recording taxes. All abatement agreements are made by various area industrialdevelopment agencies, cities and townships.

All property tax abatements are performed through Payments in Lieu of Taxes (PILOT) agreements made byvarious area industrial development agencies, cities and townships. The PILOT agreements are made tosupport manufacturing, utilities and other purposes. Total amounts received from PILOT agreements in eachof these categories for the year ended December 31, 2018 are as follows:

ManufacturingHousing/apartmentsOther

PILOT agreements entered into by various area industrial development agencies, cities and townships abated$185,192 of County property taxes in 2018.

The County of Madison receives a 4% local sales and use tax on all collections in the County. For sales and usetax imposed inside the City of Oneida, the County receives its 2% share from the State of New York. For salesand use tax imposed outside the City of Oneida, the County receives a 4% local sales and use tax and by Statestatute, must share 50% of this gross sales tax with towns or villages within the County.

The towns’ and villages’ 50% share is distributed to each municipality based on the percentage eachcontributes toward the annual County tax levy. Eight villages and two towns have opted to receive their salestax distribution as a direct payment and can use the sales tax revenue for any purpose. The other two villagesand 13 townships, by State statute, must first have their sales tax distribution used to reduce their respectiveCounty taxes based on the percentage each contributes to the annual County tax levy. Any sales tax surplus atthe end of the year is used to reduce the ensuring year’s town tax rates.

On June 1, 2004, the County increased its local sales and use tax from 3% to 4%. In 2007, 2009, 2011, 2013,2015, and again in 2017, the County extended the additional 1% sales and compensating use tax. The currentCounty sales and use tax legislation is scheduled to expire on November 30, 2020, at which time it must berescinded, amended or renewed.

TAX ABATEMENTS

33

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

6.

Restricted CashThe County reports restricted cash amounts related to reserves, as well as unspent debt proceeds restrictedfor use in capital projects.

The County currently follows an investment and deposit policy as directed by State statutes, the overallobjective of which is to adequately safeguard the principal amount of funds invested or deposited;conformance with federal, state and other legal requirements; and provide sufficient liquidity of investedfunds in order to meet obligations as they become due. Oversight of investment activity is the responsibility ofthe County Treasurer.

CASH AND CASH EQUIVALENTS

The County recognized as sales tax revenue the entire 4% while the subsequent payments to the towns andvillages are recognized as general governmental expenditures in the General Fund.

The sales tax portion of the General Fund’s non-property tax items amounted to $29,186,228 in 2018 of which$12,410,107 was distributed to towns and villages to decrease County and town tax rates. At December 31,2018, this amount included an accrual of approximately $732,199 for sales tax transactions that occurred inthe State of New York in 2018 that had not yet been received by the County. At December 31, 2018, sales taxdue to towns and villages amounted to $8,632,272 and this governmental activities and general fund liability isincluded in “Due to other governments” in the accompanying basic financial statements.

Interest Rate Risk

Custodial Credit Risk

Interest rate risk is the risk that the fair value of investments will be affected by changing interest rates. TheCounty’s investment policy, governed by the State statutes, does not limit investment maturities as a means ofmanaging its exposure to fair value losses arising from increasing interest rates.

Custodial credit risk is the risk that in the event of a bank failure, the County’s deposits may not be returned toit. While the County does not have a specific policy for custodial credit risk, New York State statutes governthe County’s investment policies. As of December 31, 2018, the County’s bank balance of $45,890,793 wascovered by depository insurance of $751,827 and collateralized by pledged securities held by the pledgingbanks’ trust departments not in the County’s name and exposed to custodial credit risk in the amount of$45,138,966.

The County does not have any foreign currency investments, securities lending agreements, or derivativeinstruments.

34

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

7.

General County Road Community RoadFund Fund Development Machinery Total

General Fund -$ -$ 62,131$ -$ 62,131$ Capital Projects Fund 1,064,810 77,016 - 12,000 1,153,826 County Road Fund 8,564,897 - - - 8,564,897 Road Machinery Fund 1,575,847 - - - 1,575,847 Debt Service Fund 2,379,176 - - - 2,379,176

13,584,730$ 77,016$ 62,131$ 12,000$ 13,735,877$

Amount Receivable

Amount Payable

9,181,026$ 2,003,339$ 1,905,149 -

79,881 1,893,491 1,917 10,334

294,581 28,409 - 143,028

17,238 98,336 - 7,302,855

Total 11,479,792$ 11,479,792$

Water FundEnvironmental Landfill FundAgency Funds

Interfund transactions between governmental activities are eliminated on the Statement of Net Position. All interfund payables are expected to be repaid within one year.

Interfund Transfers To:

Total

Interfund Transfers From

The following schedule summarizes individual fund interfund receivables and payables at December 31, 2018:

General FundCapital Projects FundCounty Road FundCommunity Development FundRoad Machinery Fund

Interfund Transactions

INTERFUND BALANCES

Transfers among funds are provided for as part of the annual budget process. Interfund transfers for the yearended December 31, 2018, which were routine in nature, were as follows:

35

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

8.

Beginning EndingBalance Additions Deletions Transfers Balance

1,361,272$ 900,000$ (25,001)$ -$ 2,236,271$ 13,542,776 14,715,122 - - 28,257,898

14,904,048 15,615,122 (25,001) - 30,494,169

35,682,223 316,000 (3,216,461) - 32,781,762 2,455,472 17,500 (109,563) - 2,363,409

153,019,444 4,133,139 (2,086,442) - 155,066,141 29,671,958 2,124,939 (3,694,752) 3,743 28,105,888

220,829,097 6,591,578 (9,107,218) 3,743 218,317,200

235,733,145 22,206,700 (9,132,219) 3,743 248,811,369

(15,541,256) (950,097) 2,099,271 - (14,392,082) (4,398,060) (68,089) 95,349 - (4,370,800)

(80,627,577) (3,349,283) 921,171 - (83,055,689) (17,723,345) (1,860,712) 2,936,856 - (16,647,201)

(118,290,238) (6,228,181) 6,052,647 - (118,465,772)

117,442,907$ 15,978,519$ (3,079,572)$ 3,743$ 130,345,597$

General government support 373,737$ Public safety 1,283,366 Public health 40,149 Transportation 4,019,965 Economic assistance and opportunity 187,456 Culture and recreation 322,908 Home and community services 600

Total 6,228,181$

Depreciation expense was charged to the County’s functions and programs as follows:

Governmental activities:

Total

Capital Assets, Net

BuildingsImprovementsInfrastructureMachinery and equipment

Subtotal

Total capital assets

Subtotal

Depreciable:

CAPITAL ASSETS

Accumulated Depreciation:BuildingsImprovements InfrastructureMachinery and equipment

Capital asset activity of governmental activities for the year ended December 31, 2018 is detailed as follows:

Type

Nondepreciable: LandConstruction in progress

36

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Beginning EndingBalance Additions Deletions Transfer Balance

715,031$ -$ -$ -$ 715,031$ 7,807,030 - (4,431,881) - 3,375,149

8,522,061 - (4,431,881) - 4,090,180

1,467,936 - - - 1,467,936 11,443,419 4,431,881 - - 15,875,300

1,197,446 - - - 1,197,446 5,355,230 96,067 (108,159) (3,743) 5,339,395

19,464,031 4,527,948 (108,159) (3,743) 23,880,077

27,986,092 4,527,948 (4,540,040) (3,743) 27,970,257

(637,568) (26,932) - - (664,500) (8,918,725) (525,107) - - (9,443,832)

(285,742) (43,108) - - (328,850) (3,413,710) (228,136) 104,542 - (3,537,304)

(13,255,745) (823,283) 104,542 - (13,974,486)

14,730,347$ 3,704,665$ (4,435,498)$ (3,743)$ 13,995,771$

9. LOANS RECEIVABLE

Accumulated Depreciation: BuildingsImprovementsInfrastructureMachinery and Equipment

Total

Capital Assets, Net

The Community Development Fund provides loans for mortgage assistance in a program funded by HUD.Loans are forgiven provided the recipient fulfills certain requirements and therefore, there are no futurepayments scheduled and these balances are reported as accounts receivable. At December 31, 2018, thereceivable balance related to this program is $615,314 and there is an offsetting deferred inflow of resourcesreported in both the Community Development Fund and governmental activities.

Housing and Urban Development (HUD) Loans

Depreciable assets:BuildingsImprovementsInfrastructureMachinery and Equipment

Subtotal

Total capital assets

Capital asset activity of business-type activities for the year ended December 31, 2018 is detailed as follows:

Type

Nondepreciable assets: LandConstruction in Progress

Subtotal

37

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Principal Interest Total

2019 95,594$ 2,136$ 97,730$ 2020 19,400 724 20,124 2021 10,450 331 10,781 2022 5,344 47 5,391

Total 130,788$ 3,238$ 134,026$

10.

Community Development Block Grant (CDBG) Revolving LoansThe Community Development Fund provides loans as part of a revolving loan program funded by CDBG. Thevarious loans range from $15,000 to $250,000. One loan issued to a developer for the purchase of land is to berepaid at 50% of the sale price of each parcel sold. At December 31, 2018, the balance on this loan is $183,563.

The remaining loans receivable are to be repaid in monthly installments with interest rates ranging from 2.25%to 4.25%. The following is a schedule of future loan payments to the County as of December 31, 2018:

The County participates in the New York State Employees’ Retirement System (NYSERS) also referred to asNew York State and Local Retirement System (the System). This is a cost-sharing, multiple employer publicemployee retirement system, providing retirement benefits as well as death and disability benefits. The netposition of the System is held in the New York State Common Retirement Fund (the Fund), established to holdall net position and record changes in plan net position allocated to the System, System benefits areestablished under the provisions of the New York State Retirement and Social Security Law (NYS RSSL). Oncean employer elects to participate in the System, the election is irrevocable. The New York State Constitutionprovides that pension membership is a contractual relationship and plan benefits cannot be diminished orimpaired. Benefits can be changed for future members only by enactment of a State statute. The System isincluded in the State’s financial report as a pension trust fund. That report, including information with regardto benefits provided, may be found at www.osc.state.ny.us/retire/publications/index.php or obtained bywriting to the New York State and Local Retirement System, 110 State Street, Albany, New York 12244.

New York State Employees’ Retirement System (NYSERS)

RETIREMENT PLANS

38

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Year Amount

2018 4,112,462$ 2017 4,282,954$ 2016 3,935,905$

The System is noncontributory for the employees who joined prior to July 27, 1976. For employees who joinedthe Systems after July 27, 1976, and prior to January 1, 2010, employees contribute 3% of their salary, exceptthat employees in the System more than ten years are no longer required to contribute. For employees whojoined after January 1, 2010 and prior to April 1, 2012, employees in NYSERS contribute 3% of their salarythroughout their active membership. For employees who joined after April 1, 2012, employees contribute 3%of their salary until April 1, 2013 and then contribute 3% to 6% of their salary throughout their activemembership. The Comptroller annually certifies the actuarially determined rates expressly used in computingthe employers’ contributions based on salaries paid during the System’s fiscal year ending March 31.

Contributions for the current year and two preceding years were equal to 100 percent of contributionsrequired, and were as follows:

At December 31, 2018, the County reported a net pension liability of $4,162,617 ($4,000,275 in thegovernmental activities and $162,342 in the business-type activities) for its proportionate share of the NYS ERSnet pension liability. The net pension liability was measured as of March 31, 2018, and the total pensionliability used to calculate the net pension liability was determined by the actuarial valuations as of that date.The County’s proportion of the net pension liability was based on a projection of the County’s long-term shareof contributions to the pension plan relative to the projected contributions of all participating members,actuarially determined. At December 31, 2018, the County’s proportion was 0.1289756%.

Pension Liabilities, Pension Expense, and Deferred Outflows/Inflows of Resources Related to Pensions

39

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Deferred Outflows of Resources

Deferred Inflows of Resources

$ 1,484,670 $ 1,226,876 2,760,159 -

6,045,871 11,933,943

530,275 1,574,962 3,078,996 -

$ 13,899,971 $ 14,735,781

Deferred Outflows of Resources

Deferred Inflows of Resources

1,426,768$ 1,179,028$ 2,652,513 -

5,810,082 11,468,520

509,594 1,513,538 2,958,915 -

13,357,872$ 14,161,086$

For the year ended December 31, 2018, the County recognized pension expense of $4,510,502 ($4,334,592 inthe governmental activities and $175,910 in the business-type activities). At December 31, 2018, the Countyreported deferred outflows/inflows of resources related to pensions from the following sources:

Net difference between projected and actual earnings on pension plan investmentsChanges in proportion and differences between the County’s contributions and proportionate share of contributionsCounty’s contributions subsequent to the measurement date

Total

Net difference between projected and actual earnings on pension plan investmentsChanges in proportion and differences between the County’s contributions and proportionate share of contributionsCounty’s contributions subsequent to the measurement date

Changes in assumptions

Total

The allocation of deferred inflows and outflows for the governmental activities at December 31, 2018 were asfollows:

Differences between expected and actual experienceChanges in assumptions

Differences between expected and actual experience

40

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Deferred Outflows of Resources

Deferred Inflows of Resources

57,902$ 47,848$ 107,646 -

235,789 465,423

20,681 61,424 120,081 -

542,099$ 574,695$

Gov’t Activities Amount

Business-type Activities Amount

2019 379,011$ 14,562$ 2020 321,813 12,365 2021 (3,085,173) (118,537) 2022 (1,385,610) (53,237)

Total (3,769,959)$ (144,847)$

The allocation of deferred inflows and outflows for the business-type activities at December 31, 2018 were asfollows:

Differences between expected and actual experienceChanges in assumptions

Total

Year Ended March 31:

County contributions subsequent to the measurement date will be recognized as a reduction of the netpension liability in the year ended December 31, 2019. Other amounts reported as deferred outflows ofresources and deferred inflows of resources related to pensions will be recognized in pension expense asfollows:

Net difference between projected and actual earnings on pension plan investmentsChanges in proportion and differences between the County’s contributions and proportionate share of contributionsCounty’s contributions subsequent to the measurement date

41

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Long-TermTarget Expected

Allocations in %

real rate of return in %

36.0 4.55 14.0 6.35 10.0 7.50 10.0 5.55

2.0 3.75 3.0 5.68 3.0 5.29

17.0 1.31 1.0 (0.25) 4.0 1.25

100

Projected COLAsDecrements

Mortality improvementInvestment rate of return

Entry age normal2.50%3.80% indexed by service

Real assetsBonds and mortgagesCashInflation-indexed Bonds

The long-term expected rate of return on pension plan investments was determined in accordance withActuarial Standard of Practice (ASOP) No. 27, Selection of Economic Assumptions for Measuring PensionObligations. ASOP No. 27 provides guidance on the selection of an appropriate assumed investment rate ofreturn. Consideration was given to expect future real rates of return (expected returns, net of pension planinvestment expense and inflation) for equities and fixed income as well as historical investment data and planperformance.

Actuarial cost methodInflationSalary scale

1.30% compounded annuallyDeveloped from the Plan’s 2015 experience study of the period April 1, 2010 through March 31, 2015Society of Actuaries Scale MP-20147.0% compounded annually, net of investment expenses

Absolute return strategiesOpportunistic portfolio

Actuarial Assumptions

The actuarial valuation used the following actuarial assumptions:

The total pension liability at March 31, 2018 was determined by using an actuarial valuation as of April 1, 2017,with update procedures used to roll forward the total pension liability to March 31, 2018.

Best estimates of arithmetic real rates of return for each major asset class included in the target assetallocation as of March 31, 2018 are summarized below:

Long-Term Expected Rate of Return

Asset Type

Domestic equityInternational equityPrivate equityReal estate

Total

42

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

1% Current 1%Decrease

(6.0%)Discount

(7.0%)Increase (8.0%)

Proportionate Share of Net Pension liability (asset) 31,495,480$ 4,162,617$ (18,959,893)$

Total pension liability 183,400,590$ Net position (180,173,145)

Net pension liability (asset) 3,227,445$

ERS net position as a percentage of total pension liability 98.24%

11.

The following presents the County’s total proportionate share (including governmental activities and business-type activities) of the net pension liability calculated using the discount rate of 7.0%, as well as what theCounty’s proportionate share of the net pension liability would be if it were calculated using a discount ratethat is 1% lower (6.0%) or 1% higher (8.0%) than the current rate:

Sensitivity of the Proportionate Share of the Net Pension Liability to the Discount Rate Assumption

Pension Plan Fiduciary Net Position (in Thousands)The components of the current-year net pension liability of the employers as of March 31, 2018 were asfollows:

Plan DescriptionThe County provides certain healthcare benefits for retired employees, their dependents and certain survivors.The County recognizes the cost of postemployment healthcare in the year when the services are received andreports the accumulated liability from prior years.

The County provides continuation of medical insurance coverage to eligible employees who retire directly intothe New York State Retirement System, and to eligible elected officials who have attained at least 10 years ofservice to the County. The plan is a single employer, postemployment healthcare benefits plan. The retireesand their beneficiaries receive this medical coverage for the remainder of their lives.

POSTEMPLOYMENT HEALTH CARE BENEFITS

The discount rate used to calculate the total pension liability was 7.0%. The projection of cash flows used todetermine the discount rate assumes that contributions from plan members will be made at the currentcontribution rates and that contributions from employers will be made at statutorily required rates, actuarially.Based upon the assumptions, the Plan’s fiduciary net position was projected to be available to make allprojected future benefit payments of current plan members. Therefore the long term expected rate of returnon pension plan investments was applied to all periods of projected benefit payments to determine the totalpension liability.

Discount Rate

43

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Inactive employees or beneficiaries receiving benefits 352 Inactive employees entitled to but not yet receiving benefits - Active Employees 529 Total Participants 881

Governmental Activities

Business-type Activities

Total Primary Government

Balance at January 1, 2018, as restated 70,148,130$ 2,880,651$ 73,028,781$

Service cost 3,029,836 111,205 3,141,041 Interest 2,749,144 111,876 2,861,020 Changes in assumptions 6,158,066 224,612 6,382,678 Benefit payments (2,043,890) (110,978) (2,154,868)

Net changes 9,893,156 336,715 10,229,871

$ 80,041,286 $ 3,217,366 $ 83,258,652

Funding PolicyThe majority of employees do not contribute toward the cost of these post-employment benefits. However,the number of future retirees who contribute will continue to increase, as members of certain bargaining unitsand employees covered by the Management Compensation Plan will be required to contribute varyingpercentages based on their dates of hire. All retiree beneficiaries are required to contribute the full premiumsfor the respective plans. Actual medical claims paid on behalf of non-Medicare eligible retirees and theirbeneficiaries are self-funded by the County. Medicare eligible retirees and their beneficiaries are enrolled in afully insured Medicare Advantage Plan. The County currently pays for postemployment healthcare benefits ona pay-as-you-go basis.

At December 31, 2018, the following employees were covered by the benefit terms:

Total OPEB Liability

Changes in the Total OPEB Liability

Changes of assumptions and other inputs reflect a change in the discount rate from 3.81% in 2017 to 3.31% in2018.

The County's total OPEB liability of $83,258,652 ($80,041,286 in the governmental activities and $3,217,366 inthe business-type activities) was measured as of December 31, 2017, and was determined by an actuarialvaluation as of January 1, 2018.

Employees Covered by Benefit Terms

Changes for the year:

Balance at December 31, 2018

44

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Discount rate

Real wage growth 2.50%

Health Care Cost Trends

Mortality

Retirement Rates

1 % Decrease Current 1 % Increase

Total OPEB Liability $ 98,550,154 $ 83,258,652 $ 71,187,967

1 % Decrease Current 1 % Increase

Total OPEB Liability $ 69,007,700 $ 83,258,652 $ 103,581,405

Sensitivity of the Total OPEB Liability to Changes in the Discount RateThe following presents that the total OPEB liability for the County, as well as what the County's total OPEBliability would be if it were calculated using a discount rate that is 1 percentage point lower (2.31%) or 1percentage point higher (4.31%) than the current discount rate:

The total OPEB liability in the January 1, 2018 actuarial valuation was determined using the following actuarialassumptions:

3.81% as of January 1, 2017; 3.31% as of January 1, 2018, based on an analysis of 20-Year Municipal Bond Index.

Assumed rates in year one are: 7.5% for Pre-65 Medical, 5.8%for Post-65 Medicare Advantage, and 10.5% for PrescriptionDrug; all declining to an ultimate rate of 3.886% in 2075 andbeyond.

The sex-distinct RPH-2014 Mortality Tables for employees andhealthy annuitants, adjusted backward to 2006 with scale MP-2014, and then adjusted for mortality improvements with scaleMP-2017 mortality improvement scale on a fully generationalbasis.

Valuation is based on the most recent New York StateEmployees' Retirement System (ERS). ERS tables are based onversion released in 2015.

Actuarial Assumptions and Other Inputs

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend RatesThe following present the total OPEB Liability of the County, as well as what the County's total OPEB liabilitywould be if it were calculated using the healthcare cost trend rates that are 1 percentage point lower and 1percentage point higher than the current healthcare cost trend rate:

45

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Governmental Activities

Business-type Activities

Total Primary Government

5,415,862$ 191,960$ 5,607,822$ 2,206,039 119,782 2,325,821$

Total 7,621,901$ 311,742$ 7,933,643$

Governmental Activities

Business-type Activities

Total Primary Government

2019 742,204$ 32,652$ 774,856$ 2020 742,204 32,652 774,856 2021 742,204 32,652 774,856 2022 742,204 32,652 774,856 2023 742,204 32,652 774,856 2024 and thereafter 1,704,842 28,700 1,733,542

Total 5,415,862$ 191,960$ 5,607,822$

12.

Bond Anticipation NotesLiabilities for bond anticipation notes (BANs) are generally accounted for in the Capital Projects Fund and theEnterprise Landfill Fund. Principal payments on BANs must be made annually. State Law requires that BANsissued for capital purposes be converted to long-term obligations within five years after the original issue date.However, BANs issued for assessable improvement projects may be renewed for periods equivalent to themaximum life of the permanent financing, providing that annual reductions of principal are made.

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

Assets Accumulated in TrustAs of the date of the financial statement, New York State did not yet have legislation that would enablegovernment entities to establish a qualifying trust for the purpose of funding other post employment benefits.As such, there are no assets accumulated in a trust that meets all of the criteria in GASB Statement No. 75,Paragraph 4 .

For the year ended December 31, 2018, the County recognized OPEB expense of $6,776,917 ($6,521,184 in thegovernmental activities and $255,733 in the business-type activities). At December 31, 2018, the County didnot report deferred inflows of resources related to OPEB and reported deferred outflows of resources relatedto OPEB from the following sources:

Changes in assumptionsCounty's contributions subsequent to the measurement date

County contributions subsequent to the measurement date will be recognized as a reduction of the OPEBliability in the year ended December 31, 2018. Other amounts reported as deferred outflows of resources anddeferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended December 31:

SHORT-TERM OBLIGATIONS

46

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Maturity Interest Rate Beginning Issued Deletions Ending Balance

4/2018 1.02% 4,000,000$ -$ (4,000,000)$ -$ 4/2019 2.10% - 3,965,000 - 3,965,000

11/2019 3.00% - 14,000,000 - 14,000,000

Total 4,000,000$ 17,965,000$ (4,000,000)$ 17,965,000$

13.

Date of Issue Final Maturity Interest Rate Balance

2010 2020 3.11 - 5.28% $ 3,825,000 2017 2036 2.00 - 3.125% 1,250,000

Total governmental activities $ 5,075,000

2017 2036 2.00 - 3.125% 3,985,000

Total business-type activities $ 3,985,000

Business-type ActivitiesLandfill expansion

Water line

BondsThe County borrows funds on a long-term basis for the purpose of financing acquisition of equipment andconstruction of buildings and improvements. This policy enables the cost of capital assets to be borne by thepresent and future taxpayers receiving the benefit of the capital assets. These long-term obligations representa reconciling item between the fund and government-wide statements. Interest expense net of bond premiumamortization for governmental activities for the year ended December 31, 2018 was $418,192. Detail relatingto general obligation bonds of the County, outstanding at December 31, 2018, is summarized as follows:

Description

Governmental Activities

Short-term bond anticipation note payable detail as of December 31, 2018 and activity for the year thenended, was as follows:

Issued4/20174/2018

11/2018

LONG-TERM LIABILITIES

Public safety communications

47

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Principal Interest

2019 $ 1,930,000 $ 187,814 2020 2,000,000 86,880 2021 55,000 33,863 2022 55,000 32,213 2023 60,000 30,488 2024-2028 325,000 124,163 2029-2033 380,000 71,438 2034-2036 270,000 13,125

Total $ 5,075,000 $ 579,984

Principal Interest

2019 170,000$ 117,181$ 2020 170,000 112,931 2021 175,000 107,756 2022 185,000 102,356 2023 190,000 96,731 2024-2028 1,040,000 393,356 2029-2033 1,230,000 223,856 2034-2036 825,000 38,828

Total 3,985,000$ 1,192,995$

Principal and interest payments due on the bonds outstanding at December 31, 2018, for the primarygovernment, are as follows:

Governmental ActivitiesYear Ending Date

Business-type ActivitiesYear Ending Date

48

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Date of Issue Final Maturity Interest Rate Balance

2016 2033 2.98% 2,310,747$ 2016 2026 3.25% 102,921

2,413,668$

Principal Interest

2019 199,813$ 72,205$ 2020 230,586 66,224 2021 173,744 59,325 2022 191,972 54,117 2023 140,415 48,362 2024-2028 745,588 173,884 2029-2033 731,550 63,060

Total 2,413,668$ 537,177$

Energy efficiency lease #2

Total governmental activities

Principal and interest payments due on the leases outstanding at December 31, 2018, for the primarygovernment, are as follows:

Installment Purchase Debt - LeasesThe County has two (2) Energy Performance Contract Lease Purchase Agreements that were issued to financeenergy-related improvements. Detail relating to the leases outstanding at December 31, 2018, is summarizedas follows:

Description

Governmental ActivitiesEnergy efficiency lease #1

Year Ending DateGovernmental Activities

49

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Principal

2019 109,000$ 2020 109,000 2021 109,000 2022 106,687 2023 109,000 2024-2028 545,000 2029-2033 545,000 2034-2038 545,000 2039-2043 545,000 2044-2048 533,313

Total 3,256,000$

Beginning Balance

(restated) Additions Deletions Ending Balance Due within One Year

6,945,000$ -$ (1,870,000)$ 5,075,000$ 1,930,000$ 145,086 - (61,448) 83,638 61,448

2,579,599 - (165,931) 2,413,668 199,813 4,019,613 144,994 - 4,164,607 -

10,650,010 - (6,649,735) 4,000,275 - 70,148,130 11,937,046 (2,043,890) 80,041,286 -

Total 94,487,438$ 12,082,040$ (10,791,004)$ 95,778,474$ 2,191,261$

Year Ending Date

Loan Payable - EFC Financing

Serial bonds

The County received interest-free financing from the New York State Environmental Facilities Corporation(EFC) in the amount of $3,310,000 to finance a Sewer Pipeline Project in the Enterprise Landfill Fund. In 2018,the loan was converted into a long-term obligation at the completion of the project. At December 31, 2018,principal payments are due as follows:

Unamortized bond premiumInstallment purchase debt

Net pension liabilityOPEB

Long-term Liabilities

The following is a summary of changes in long-term liabilities that occurred during the fiscal year endingDecember 31, 2018:

Governmental Activities:

Compensated absences

50

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

Beginning Balance

(restated) Additions Deletions Ending Balance Due within One Year

4,150,000$ -$ (165,000)$ 3,985,000$ 170,000$ - 3,256,000 - 3,256,000 109,000

172,555 - (23,330) 149,225 - 6,230,978 1,716,143 - 7,947,121 -

409,190 - (246,848) 162,342 - 2,880,651 447,693 (110,978) 3,217,366 -

Total 13,843,374$ 5,419,836$ (546,156)$ 18,717,054$ 279,000$

14.

15.

The landfill is comprised of the East Side and West Side, with the West Side being the active portion of thelandfill. Based upon a projected landfill usage rate of 60,000 tons per year, the estimated remaining life of theconstructed west side landfill after January 2019 is 5 years and 10 months.

These amounts are based on estimates of what it would cost to perform all post closure care as of December31, 2018. Actual costs may be higher in the near term due to final approval of certain elements by the NewYork State Department of Environmental Conservation, inflation, changes in technology or changes inregulations.

Business-type Activities:Serial bonds

Landfill closure/ post-closureNet pension liabilityOPEB

State and Federal law and regulations require the County to place a final cover on its municipal landfill sitewhen it stops accepting waste, and to perform certain maintenance and monitoring function at the site for 30years after closure. Although closure and post-closure care costs will be paid only near or after the date thatthe landfill stops accepting waste, the County reports a portion of these closure and post-closure care costs asa liability based on landfill capacity used each year. The $7,947,121 reported in the Landfill Fund as landfillclosure and post-closure care liability represents the cumulative amount reported to date.

Compensated absencesLoan payable

LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS

SIGNIFICANT CLAIMS AND CONTINGENT LIABILITIES

Other MattersThe County is subject to a number of lawsuits in the ordinary conduct of its affairs. Such lawsuits and claims arenot, in the opinion of management, expected to have a material effect on the County’s financial condition.

51

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

16.

Liability at January 1, 2018 2,204,957$ Claims and changes in estimates 1,027,998 Claim payments (1,625,157)

Liability at December 31, 2018 1,607,798$

The County has also entered into numerous operating lease agreements which, in the opinion of management,are not considered to be material.

The County purchases commercial insurance coverage and is self-insured for the deductible portion of itsgeneral liability risks. The County also funds its Workers’ Compensation claim liability through a municipalworkers’ compensation risk pool, of which the County is the sponsoring member. In addition, the County is self-funded for its major medical, surgical, and hospital claims, which are administered by a third-party claimsadministrator. At December 31, 2018, the County has recognized $295,768 as part of its accounts payableliability in the General Fund representing incurred but not yet reported health insurance claims. At December31, 2018, the County also recognized $86,385 as part of its accounts payable liability in the General Fundrepresenting incurred but not yet reported dental and prescription claims.

The County has also accrued a liability of $1,607,798 for workers’ compensation premiums, unresolved claimsand legal costs in its business-type activities and major enterprise fund (Workers’ Compensation) at December31, 2018. A reconciliation of workers’ compensation claims is presented below.

County employees are entitled to coverage under the New York State Unemployment Insurance Law. TheCounty has elected to discharge its liability to the New York State Unemployment Insurance Fund by thebenefit reimbursement method, a dollar-for-dollar reimbursement for benefits paid to County employees andcharged to the County’s account. There was no change in commercial coverage during 2018, and settled claimshave not exceeded commercial coverage in any of the past five fiscal years.

INSURANCE AND COMMITMENTS

52

COUNTY OF MADISON, NEW YORK

Notes to Basic Financial Statements

17.

18.

Sewer Fund Governmental

Activities

Cash (792,682)$ (79,682)$ Capital assets, net - (2,822,051)

Special item (792,682)$ (2,901,733)$

19.

SPECIAL ITEM

Through December 31, 2017 the Sewer District was governed by the Madison County Board of Supervisorswhich appointed a five member Madison County Sewer District Board consisting of members from the Townsof Cazenovia and Nelson and the Village of Cazenovia. On January 1, 2018 the County transferred ownership,administration and operation of the Madison County Sewer District Treatment Plant and the correspondingsewerage system assets to the Town of Cazenovia, New York. The following assets were transferred:

The County participates in a number of Federal and New York State grant and assistance programs. Theseprograms are subject to financial and compliance audits by the grantors or their representatives. The amount,if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time,although the County expects such amounts, if any, to be immaterial. Expenditures disallowed by completedaudits have generally been immaterial in nature and, accordingly, have been reflected as adjustments torevenues in the year the expenditure was determined to be unallowable.

In April 2019, the County renewed bond anticipation notes in the amount of $3,925,000, which carry aninterest rate of 2.125% and a maturity date of April 10, 2020.

FEDERAL AND STATE FUNDED PROGRAMS

SUBSEQUENT EVENTS

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COUNTY OF MADISON, NEW YORK

Required Supplementary InformationStatement of Revenues, Expenditures and Change in Fund BalanceBudget and Actual - General Fund (Unaudited)For the year ended December 31, 2018

Original Budget (Adopted)

Budget (Amended) Actual

Intrafund Activity

Favorable (Unfavorable)

Variance

REVENUES:Real property taxes 37,754,090$ 37,754,090$ 37,859,171$ -$ 105,081$ Real property taxe items 1,300,000 1,300,000 1,164,612 - (135,388) Non-property tax items 26,080,000 27,891,626 29,804,661 - 1,913,035 Departmental income 5,982,310 6,101,877 5,991,298 - (110,579) Intergovernmental charges 213,800 213,800 210,175 - (3,625) Use of money and property 112,854 112,854 227,108 - 114,254 Licenses and permits 20,000 20,000 10,160 - (9,840) Fines and forfeitures 126,750 126,750 81,629 - (45,121) Sale of property and compensation for loss 891,328 908,564 1,095,987 - 187,423 Miscellaneous local sources 1,558,800 2,205,563 1,793,370 - (412,193) Interfund revenues 2,068,861 2,090,292 62,213 1,603,939 (424,140) State aid 14,443,943 19,130,365 17,303,353 - (1,827,012) Federal aid 7,295,643 8,018,349 7,042,919 - (975,430)

Total revenues 97,848,379 105,874,130 102,646,656 1,603,939 (1,623,535)

EXPENDITURES:Current -

General governmental support 25,877,287 30,035,788 27,261,593 981,206 (1,792,989) Education 4,963,268 5,566,806 5,184,639 - (382,167) Public safety 16,632,087 18,235,227 16,546,125 438,934 (1,250,168) Public health 7,686,537 7,974,712 7,160,341 58,998 (755,373) Transportation 344,000 1,094,000 333,925 - (760,075) Economic assistance and opportunity 31,210,103 31,390,185 28,771,240 67,623 (2,551,322) Culture and recreation 771,691 989,597 1,032,619 - 43,022 Home and community services 1,418,314 1,925,850 1,731,494 - (194,356) Employee benefits 1,579,322 1,793,601 2,165,754 57,178 429,331

Total expenditures 90,482,609 99,005,766 90,187,730 1,603,939 (7,214,097)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 7,365,770 6,868,364 12,458,926 - (8,837,632)

OTHER FINANCING SOURCES (USES):Operating transfers - in - 62,131 62,131 - - Operating transfers - out (12,742,920) (13,355,246) (13,584,730) - (229,484)

Total other financing uses (12,742,920) (13,293,115) (13,522,599) - (229,484)

CHANGE IN FUND BALANCE (5,377,150)$ (6,424,751)$ (1,063,673) -$ (9,067,116)$

FUND BALANCE - beginning of year 28,330,331

FUND BALANCE - end of year 27,266,658$

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COUNTY OF MADISON, NEW YORK

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009Total OPEB LiabilityService cost 3,141,041$ Interest 2,861,020 Changes of benefit terms - Differences between expected and actual experience - Changes in assumptions 6,382,678 Benefit payments (2,154,868) Total change in total OPEB liability 10,229,871 Total OPEB liability - beginning 73,028,781 Total OPEB liability - ending 83,258,652

Covered-employee payroll 27,245,238$

Total OPEB liability as a percentage of covered-employee payroll 305.59%

Notes to schedule: Changes of assumptions: Changes in assumptions and other inputs reflect the effects of changes in the discount rate each period. The following reflects the discount rate used each period:

Discount rate 3.31% 3.81%

Plan assets: No assets are accumulated in a trust that meets all of the criteria of GASB Statement No. 75, paragraph 4 to pay benefits.

Required Supplementary Information (Unaudited)Schedule of Changes in Total OPEB Liability and Related RatiosFor the year ended December 31, 2018

Last 10 Fiscal Years

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COUNTY OF MADISON, NEW YORK

Required Supplementary Information Schedule of Proportionate Share of Net Pension Liability (Unaudited)For the year ended December 31, 2018

NEW YORK STATE EMPLOYEES' RETIREMENT SYSTEM PLAN - ERS 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

Proportion of the net pension liability (asset) 0.1290% 0.1177% 0.1171% 0.1153%Proportionate share of the net pension liability (asset) 4,163$ 11,059$ 18,794$ 3,895$ Covered-employee payroll 26,935$ 27,203$ 24,749$ 23,264$

15.46% 40.65% 75.94% 16.74%

98.24% 94.70% 90.70% 97.95%

Last 10 Fiscal Years (Dollar amounts displayed in thousands)

Proportionate share of the net pension liability (asset) as a percentage of its covered-employee payrollPlan fiduciary net position as a percentage of the total pension liability (asset)

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COUNTY OF MADISON, NEW YORK

Required Supplementary InformationSchedule of Contributions - Pension Plans (Unaudited)For the year ended December 31, 2018

NEW YORK STATE EMPLOYEES' RETIREMENT SYSTEM PLAN - ERS 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

Contractually required contribution 4,112$ 4,283$ 3,936$ 4,257$ Contributions in relation to the contractually required contribution 4,112 4,283 3,936 4,257 Contribution deficiency (excess) -$ -$ -$ -$ Covered-employee payroll 26,935$ 27,203$ 24,749$ 23,264$ Contributions as a percentage of covered-employee payroll 15.27% 15.74% 17.00% 18.30%

Last 10 Fiscal Years (Dollar amounts displayed in thousands)

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COUNTY OF MADISON, NEW YORK

Supplementary InformationCombining Balance Sheet - Nonmajor Governmental FundsDecember 31, 2018

Special Debt Total NonmajorRevenue Service Governmental

Funds Fund Funds

ASSETS

Cash and cash equivalents, unrestricted 360,953$ 544,375$ 905,328$ Cash and cash equivalents, restricted 1,729,941 - 1,729,941 Accounts receivable, net 646,674 - 646,674 Loans receivable 314,351 - 314,351 Due from other funds 296,498 - 296,498 Prepaid expenditures 26,717 - 26,717 Inventories 446,386 - 446,386

Total assets 3,821,520$ 544,375$ 4,365,895$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

LIABILITIES:Accounts payable and other accrued liabilities 135,609$ -$ 135,609$ Due to other funds 181,771 - 181,771

Total liabilities 317,380 - 317,380

DEFERRED INFLOWS OF RESOURCES:Unearned revenue 929,664 - 929,664

FUND BALANCES:Nonspendable 473,103 - 473,103 Restricted 1,952,377 544,375 2,496,752 Committed 304,534 - 304,534 Unassigned (155,538) - (155,538)

Total fund balances 2,574,476 544,375 3,118,851

Total liabilities, deferred inflows of resources and fund balances 3,821,520$ 544,375$ 4,365,895$

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COUNTY OF MADISON, NEW YORK

Supplementary InformationCombining Statement of Revenues, Expenditures and Change in Fund Balances -

Special Debt Total NonmajorRevenue Service Governmental

Funds Fund Funds

REVENUES:Real property taxes 7,000$ -$ 7,000$ Departmental income 57,649 - 57,649 Intergovernmental charges 13,979 - 13,979 Use of money and property 10,954 - 10,954 Sale of property and compensation for loss 132,631 - 132,631 Miscellaneous local sources 17,810 - 17,810 Interfund revenues 716,272 - 716,272 State aid 155,323 - 155,323 Federal aid 653,393 - 653,393

1,765,011 - 1,765,011

Current -Public safety 11,754 - 11,754 Transportation 2,761,629 - 2,761,629 Economic assistance and opportunity 636,298 - 636,298 Home and community services 416,881 - 416,881 Employee benefits 189,995 - 189,995

Debt service -Principal - 2,035,931 2,035,931 Interest - 359,109 359,109

Total expenditures 4,016,557 2,395,040 6,411,597

DEFICIENCY OF REVENUES OVER EXPENDITURES (2,251,546) (2,395,040) (4,646,586)

Operating transfers - in 1,575,847 2,379,176 3,955,023 Operating transfers - out (74,131) - (74,131) Special item (Note 18) (792,681) - (792,681)

Total other financing sources 709,035 2,379,176 3,088,211

(1,542,511) (15,864) (1,558,375)

4,116,987 560,239 4,677,226

2,574,476$ 544,375$ 3,118,851$ FUND BALANCE - end of year

For the year ended December 31, 2018

EXPENDITURES:

Nonmajor Governmental Funds

Total revenues

OTHER FINANCING SOURCES:

CHANGE IN FUND BALANCE

FUND BALANCE - beginning of year

59

COUNTY OF MADISON, NEW YORK

Supplementary InformationCombining Balance Sheet - Nonmajor Special Revenue FundsDecember 31, 2018

Law Total NonmajorCommunity Cowaselon Enforcement Road Water Sewer Special RevenueDevelopment Creek Trust Machinery District District Funds

ASSETS

Cash and cash equivalents, unrestricted 82,819$ 70,751$ 76,828$ 130,555$ -$ -$ 360,953$ Cash and cash equivalents, restricted 1,288,466 - - 441,475 - - 1,729,941 Accounts receivable, net 633,718 - - 12,956 - - 646,674 Loans receivable 314,351 - - - - - 314,351 Due from other funds 1,917 - - 294,581 - - 296,498 Prepaid expenditures 10,308 - - 16,409 - - 26,717 Inventories - - - 446,386 - - 446,386

Total assets 2,331,579$ 70,751$ 76,828$ 1,342,362$ -$ -$ 3,821,520$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

LIABILITIES:Accounts payable and other accrued liabilities 17,950$ -$ -$ 105,149$ 12,510$ -$ 135,609$ Due to other funds 10,334 - - 28,409 143,028 - 181,771

Total liabilities 28,284 - - 133,558 155,538 - 317,380

DEFERRED INFLOWS OF RESOURCES:Unearned revenue 929,664 - - - - - 929,664

FUND BALANCES:Nonspendable 10,308 - - 462,795 - - 473,103 Restricted 1,363,323 70,751 76,828 441,475 - - 1,952,377 Committed - - - 304,534 - - 304,534 Unassigned - - - - (155,538) - (155,538)

Total fund balances 1,373,631 70,751 76,828 1,208,804 (155,538) - 2,574,476

Total liabilities, deferred inflows of resources and fund balances 2,331,579$ 70,751$ 76,828$ 1,342,362$ -$ -$ 3,821,520$

60

Supplementary InformationCombining Statement of Revenues, Expenditures and Change in Fund Balances -

Law Total NonmajorCommunity Cowaselon Enforcement Road Water Sewer Special RevenueDevelopment Creek Trust Machinery Fund District Funds

REVENUES:Real property taxes -$ 7,000$ -$ -$ -$ -$ 7,000$ Departmental income 57,163 - - - 160 326 57,649 Intergovernmental charges - - - 13,979 - - 13,979 Use of money and property 3,286 - 20 7,575 - 73 10,954 Sale of property and compensation for loss - - - 132,631 - - 132,631 Miscellaneous local sources 8,853 - 8,957 - - - 17,810 Interfund revenues 127,656 - - 588,616 - - 716,272 State aid 155,323 - - - - - 155,323 Federal aid 653,393 - - - - - 653,393

1,005,674 7,000 8,977 742,801 160 399 1,765,011

Current -Public safety - - 11,754 - - - 11,754 Transportation - - - 2,761,629 - - 2,761,629 Economic assistance and opportunity 635,498 800 - - - - 636,298 Home and community services 261,183 - - - 155,698 - 416,881 Employee benefits - - - 189,995 - - 189,995

Total expenditures 896,681 800 11,754 2,951,624 155,698 - 4,016,557

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 108,993 6,200 (2,777) (2,208,823) (155,538) 399 (2,251,546)

Operating transfers - in - - - 1,575,847 - - 1,575,847 Operating transfers - out (62,131) - - (12,000) - - (74,131) Special item (Note 18) - - - - - (792,681) (792,681)

Total other financing sources (62,131) - - 1,563,847 - (792,681) 709,035

46,862 6,200 (2,777) (644,976) (155,538) (792,282) (1,542,511)

1,326,769 64,551 79,605 1,853,780 - 792,282 4,116,987

1,373,631$ 70,751$ 76,828$ 1,208,804$ (155,538)$ -$ 2,574,476$

OTHER FINANCING SOURCES (USES):

CHANGE IN FUND BALANCE

FUND BALANCE - beginning of year

FUND BALANCE - end of year

COUNTY OF MADISON, NEW YORK

Nonmajor Special Revenue FundsFor the year ended December 31, 2018

Total revenues

EXPENDITURES:

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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

July 31, 2019

To the Board of Supervisors of

Internal Control Over Financial ReportingIn planning and performing our audit of the financial statements, we considered theCounty’s internal control over financial reporting (internal control) to determine theaudit procedures that are appropriate in the circumstances for the purpose ofexpressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the County’s internal control.Accordingly, we do not express an opinion on the effectiveness of the County’sinternal control.

A deficiency in internal control exists when the design or operation of a control doesnot allow management or employees, in the normal course of performing theirassigned functions, to prevent, or detect and correct, misstatements on a timelybasis. A material weakness is a deficiency, or a combination of deficiencies, ininternal control, such that there is a reasonable possibility that a materialmisstatement of the entity’s financial statements will not be prevented, or detectedand corrected on a timely basis. A significant deficiency is a deficiency, or acombination of deficiencies, in internal control that is less severe than a materialweakness, yet important enough to merit attention by those charged withgovernance.

County of Madison, New York

We have audited, in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards issued by the Comptroller General of the UnitedStates, the financial statements of the governmental activities, the business-typeactivities, the aggregate discretely presented component unit, each major fund, andthe aggregate remaining fund information of County of Madison, New York (theCounty), as of and for the year ended December 31, 2018, and the related notes tothe financial statements, which collectively comprise the County’s basic financialstatements, and have issued our report thereon dated July 31, 2019. Our reportincludes a reference to other auditors who audited the financial statements ofMadison County Industrial Development Agency as described in our report on Countyof Madison, New York’s financial statements. This report does not include the resultsof the other auditors’ testing of internal control over financial reporting orcompliance and other matters that are reported on separately by that auditor.

432 North Franklin Street, #60 Syracuse, New York 13204

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The purpose of this report is solely to describe the scope of our testing of internal control and complianceand the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internalcontrol or on compliance. This report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the entity’s internal control and compliance. Accordingly,this communication is not suitable for any other purpose.

As part of obtaining reasonable assurance about whether the County’s basic financial statements are freefrom 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 andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or other matters thatare required to be reported under Government Auditing Standards .

Purpose of this Report

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Compliance and Other Matters

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

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July 31, 2019

Members of the Madison County Board of Supervisors

Report on Compliance for Each Major Federal Program

Management’s Responsibility

Auditor’s ResponsibilityOur responsibility is to express an opinion on compliance for the County’s majorfederal program based on our audit of the types of compliance requirements referredto above. We conducted our audit of compliance in accordance with auditingstandards generally accepted in the United States of America; the standardsapplicable to financial audits contained in Government Auditing Standards , issued bythe Comptroller General of the United States; and the audit requirements of Title 2U.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 theaudit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and materialeffect on a major federal program occurred. An audit includes examining, on a testbasis, evidence about the County’s compliance with those requirements andperforming such other procedures as we considered necessary in the circumstances.

Management is responsible for compliance with the federal statutes, regulations, andthe terms and conditions of its federal awards applicable to its federal programs.

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAMAND ON INTERNAL CONTROL OVER COMPLIANCE

County of Madison, New York

We have audited the County of Madison, New York’s (the County) compliance withthe types of compliance requirements described in the OMB Compliance Supplementthat could have direct and material effect on each of the County’s major federalprograms for the year ended December 31, 2018. The County’s major federalprogram is identified in the summary of auditor’s results section of the accompanyingschedule of findings and questioned costs.

The County’s basic financial statements include the operations of Madison CountyIndustrial Development Agency whose federal awards are not included in theschedule of expenditures of federal awards for the year ended December 31, 2018.Our audit, described below, did not include the federal awards of the above entity asthis entity conducted separate audits in accordance with OMB Uniform Guidance, ifrequired.

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A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal course of performing their assignedfunctions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of afederal program on a timely basis. A material weakness in internal control over compliance is adeficiency, or combination of deficiencies, in internal control over compliance, such that there is areasonable possibility that material noncompliance with a type of compliance requirement of a federalprogram will not be prevented, or detected and corrected, on a timely basis. A significant deficiency ininternal control over compliance is a deficiency or a combination of deficiencies in internal control overcompliance with a type of compliance requirement of a federal program that is less severe than amaterial weakness in internal control over compliance, yet important enough to merit attention by thosecharged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be material weaknesses or significant deficiencies. We did not identify anydeficiencies 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 ourtesting of internal control over compliance and the results of that testing based on the requirements ofthe Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Management of the County is responsible for establishing and maintaining effective internal control overcompliance with the types of compliance requirements referred to above. In planning and performingour audit of compliance, we considered the County’s internal control over compliance with the types ofrequirements that could have a direct and material effect on each major federal program to determinethe auditing procedures that are appropriate in the circumstances for the purpose of expressing anopinion on compliance for each major federal program and to test and report on internal control overcompliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinionon the effectiveness of internal control over compliance. Accordingly, we do not express an opinion onthe effectiveness of the County’s internal control over compliance.

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNALCONTROL OVER COMPLIANCE

We believe that our audit provides a reasonable basis for our opinion on compliance for each majorfederal program. However, our audit does not provide a legal determination of the County’s compliance.

Opinion on Each Major Federal ProgramIn our opinion, the County complied, in all material respects, with the types of compliance requirementsreferred to above that could have a direct and material effect on each of its major federal programs forthe year ended December 31, 2018.

Report on Internal Control over Compliance

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COUNTY OF MADISON, NEW YORK

Schedule of Expenditures of Federal AwardsFor the year ended December 31, 2018

Pass- ThroughEntity

Identification Federal Provided to Federal Grantor/Pass-through Grantor/Program Title CFDA # Number Expenditures Subrecipients

U.S. Department of Agriculture:Passed- through NYS Department of Family Assistance:SNAP Cluster

State Administration Matching Grants for the Supplemental Nutrition Assistance Program 10.561 541,409$

Total SNAP Cluster 541,409 Total Department of Agriculture 541,409

U.S. Department of Housing & Urban Development:Passed-through New York State Housing & Urban Development:

Community Development Block Grants/Entitlement Grants: 14.218 686SB883-17 93,401 7,117 Total Department of Housing and Urban Development 93,401 7,117

U.S. Department of Justice: Direct Program:

Bulletproof Vest Partnership Program 16.607 21,495 Total Department of Justice 21,495

U.S. Department of Labor:Passed-through County of Herkimer, New York: WIOA Cluster

WIOA Adult Program 17.258 238,693 WIOA Youth Activities 17.259 137,463 WIOA Dislocated Water Formula Grants 17.278 99,822

Total WIOA Cluster 475,978 Total Department of Labor 475,978

U.S. Department of Transportation: Passed-through New York State Governors Committee Traffic Safety:Highway Safety Cluster

State and Community Highway Safety 20.600 34,211 National Priority Safety Programs 20.616 5,966

Total Highway Safety Cluster 40,177 Total Passed-through New York State Governors Committee Traffic Safety 40,177

Passed-through New York State Department of Transportation Highway Planning Cluster

Highway Planning and Construction 20.205 1,414,438 Total Highway Planning Cluster 1,414,438 Total Passed-through New York State Department of Transportation 1,414,438 Total Department of Transportation 1,454,615

U.S. Department of Education:

Passed-through NYS Department of Health Early Intervention:Special Education Cluster

Special Education-Grants for Infants and Families 84.181 37,835 Total Special Education Cluster 37,835

Total Department of Education 37,835

Executive Office of the President

Direct Program:Drug-Free Community Support Program Grant 95.009 1,640

Total Executive Office of the President 1,640

The accompanying notes are an integral part of this schedule.

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COUNTY OF MADISON, NEW YORK

Schedule of Expenditures of Federal AwardsFor the year ended December 31, 2018

Pass- ThroughEntity

Identification Federal Provided to Federal Grantor/Pass-through Grantor/Program Title CFDA # Number Expenditures Subrecipients

U.S. Department of Health and Human Service:

Passed-through Health Research, Inc.: Public Health Emergency PreparednessCenter for Disease Control and Prevention 93.069 48,550

Environmental Public Health and Emergency Response 93.070 95,038

Total Passed-through Health Research, Inc. 143,588

Passed-through NYS Department of HealthImmunization Cooperative Agreements 93.268 11,846

Maternal and Child Health Services Block Grant 93.994 26,603

Total Department of Health 38,449

Passed-through NYS Department of Family AssistancePromoting Safe and Stable Families 93.556 15,379 Temporary Assistance for Needy Families (TANF) 93.558 3,300,817 Child Support Enforcement 93.563 452,051 Low-Income Home Energy Assistance 93.568 2,815,746 Child Care and Development Block Grant 93.575 834,284 Stephanie Tubbs Jones child Welfare Services Program 93.645 113,472 Foster Care Title IV-E 93.658 427,563 Adoption Assistance 93.659 223,513 Social Services Block Grant 93.667 451,521 Chafee Foster Care Independence Program 93.674 4,960 Children's Health Insurance Program 93.767 39,640

Medicaid ClusterMedical Assistance Program 93.778 73,622,656

Total Medicaid Cluster 73,622,656 82,301,602

Passed-through Madison County Council on Alcohol and Substance Abuse Block Grants for Prevention and Treatment of Substance Abuse 93.959 293,698

293,698

Total Department of Health and Human Services 82,777,337

U.S. Department of Homeland Security Direct:

Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 99,009 Homeland Security Grant Program - FY15 SLETPP Grant 97.067 T971452 3,073 Homeland Security Grant Program - FY15 Explosive Detection Canine 97.067 T971459 7,969 Homeland Security Grant Program - FY15 SHSP Grant 97.067 SH15-1060-D01 26,439 Homeland Security Grant Program - FY16 SLETPP Grant 97.067 T971462 4,186 Homeland Security Grant Program - FY16 Explosive Detection Canine 97.067 T837069 557 Homeland Security Grant Program - FY16 SHSP Grant 97.067 SH16-1020-D00 37,820 Homeland Security Grant Program - FY16 Tactical Team Grant 97.067 C971469 32,535 Homeland Security Grant Program - FY17 SLETPP Grant 97.067 T971472 11,111 Homeland Security Grant Program - FY17 SHSP Grant 97.067 SH17-1020-D00 17,020 Homeland Security Grant Program - FY17 Tactical Team Grant 97.067 C971479 44,439 Homeland Security Grant Program - FY17 EMPG Grant 97.067 EM17-1032-D00 32,331

Total Homeland Security Grant Program CyberTipline 217,480

CyberTipline 97.076 6,200

Total Department of Homeland Security 322,689

Total Expenditures of Federal Awards 85,726,399$ 7,117$

Total Passed-through NYS Department of Family Assistance

The accompanying notes are an integral part of this schedule.

Total Passed-through Madison County Council on Alcohol and Substance Abuse

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COUNTY OF MADISON, NEW YORK

Notes to Schedule of Expenditures of Federal Awards

1. BASIS OF PRESENTATION

Pass-Through Programs

Non-Monetary Federal Programs

2. BASIS OF ACCOUNTING

3. INDIRECT COSTS

4. MATCHING COSTS

Matching costs (i.e., the County’s share of certain program costs) are not included in the schedule of expendituresof federal awards.

The SEFA is presented in accordance with accounting principles generally accepted in the United States of Americaand is derived from the County’s general ledger. Federal expenditures are recorded when an allowable cost isincurred under the applicable program and is due and payable. For programs with funding ceilings and caps,federal expenditures are only recorded and presented in the SEFA up to such amounts.

Where the County of Madison, New York (the County) receives funds from a government entity other than thefederal government (pass-through), the funds are accumulated based upon the Catalog of Federal DomesticAssistance (CFDA) number when advised by the pass through grantor. Identifying numbers, other than CFDAnumbers, which may be assigned by pass-through grantors, are not maintained in the County’s financialmanagement system. County management has identified certain pass-through identifying numbers and includedthem in the schedule of expenditures of federal awards (SEFA).

The County is awarded financial assistance programs that do not result in cash receipts or disbursements, termed“non-monetary programs.” During the fiscal year ended December 31, 2018, the County distributed $73,022,382of medical services and goods that were received by participants in the Medical Assistance Program (CAFDANumber 93.778), and $2,641,752 of energy assistance to eligible persons under the Low-Income Home EnergyAssistance Program (CFDA 93.568), as listed in the accompanying schedule.

Indirect costs are included in the reported expenditures to the extent such costs are included in the federalfinancial reports used as the source for the data presented. The County has not elected to use the 10 percent deminimis indirect cost rate as allowed under the Uniform Guidance.

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COUNTY OF MADISON, NEW YORK

Schedule of Findings and Questioned CostsFor the year ended December 31, 2018

Financial Statements

Federal Awards

U.S. Department of Health and Human ServicesMedical Assistance Program (93.778)

The County was considered a low-risk auditee for the year ended December 31, 2018.

Part II – Financial Statement FindingsNone

Part III – Federal Award Findings and Questioned CostsNone

The dollar threshold to determine Type A programs was $2,571,792.

The major federal program of the County for the year ended December 31, 2018 was as follows:

Internal control over major programs:Material weakness(es) identified?Significant deficiencies identified?

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

Any audit findings disclosed that are required to be reported inaccordance with Uniform Guidance, 2 CFR Section 200.516(a)?

Noncompliance material to financial statements noted?

Part I - Summary of Auditor’s Results

Type of auditor’s report issued on whether the County’s UnmodifiedInternal control over financial reporting:

Material weakness(es) identified?Significant deficiencies identified?

Yes

Yes

No

None reported

Yes

None reportedYes

Yes No

Yes No

None reported

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APPENDIX – D

MATERIAL EVENT NOTICES WITH RESPECT TO THE NOTES

In accordance with the provisions of Rule 15c2-12, as the same may be amended or officially interpreted from time to time

(the "Rule"), promulgated by the Commission pursuant to the Securities Exchange Act of 1934, the County has agreed to provide

or cause to be provided, in a timely manner not in excess of ten (10) business days after the occurrence of the event, during the

period in which the Notes are outstanding, to the EMMA system of the Municipal Securities Rulemaking Board (“MSRB”) or any

other entity designated or authorized by the Commission to receive reports pursuant to the Rule, notice of the occurrence of any of

the following events with respect to the Notes:

(a) principal and interest payment delinquencies

(b) non-payment related defaults, if material

(c) unscheduled draws on debt service reserves reflecting financial difficulties

(d) in the case of credit enhancement, if any, provided in connection with the issuance of the Notes, 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 material notices or determinations with respect to the tax

status of the Note, or other material events affecting the tax status of the Notes

(g) modifications to rights of Note holders, if material

(h) note calls, if material and tender offers

(i) defeasances

(j) release, substitution, or sale of property securing repayment of the Note

(k) rating changes

(l) bankruptcy, insolvency, receivership or similar event of the County

(m) the consummation of a merger, consolidation, or acquisition involving the County or the sale of all or substantially all

of the assets of the County, 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” (as defined in the Rule) of the County, if material, or agreement to covenants,

events of default, remedies, priority rights, or other similar terms of a financial obligation of the County, any of which

affect Note holders, 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 County, any of which reflect financial difficulties.

Event (c) is included pursuant to a letter from the SEC staff to the National Association of Bond Lawyers dated September 19,

1995. However, event (c) is not applicable, since no "debt service reserves" will be established for the Notes.

With respect to event (d) the County does not undertake to provide any notice with respect to credit enhancement added after

the primary offering of the Notes.

For the purposes of the event identified in paragraph (l) of this section, the event is considered to occur when any of the

following occur: The appointment of a receiver, fiscal agent or similar officer for the County 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 County, 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 County.

The County may from time to time choose to provide notice of the occurrence of certain other events, in addition to those

listed above, if the County determines that any such other event is material with respect to the Notes; but the County does not

undertake to commit to provide any such notice of the occurrence of any material event except those events listed above.

With respect to events (o) and (p), the term “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 Municipal Securities Rulemaking Board consistent with the Rule.

The County reserves the right to terminate its obligation to provide the aforedescribed notices of material events, as set forth

above, if and when the County no longer remains an obligated person with respect to the Notes within the meaning of the Rule.

The County acknowledges that its undertaking pursuant to the Rule described under this heading is intended to be for the benefit of

the holders of the Notes (including holders of beneficial interests in the Notes). The right of holders of the Notes to enforce the

provisions of the undertaking will be limited to a right to obtain specific enforcement of the County’s obligations under its material

event notices undertaking and any failure by the County to comply with the provisions of the undertaking will neither be a default

with respect to the Notes nor entitle any holder of the Notes to recover monetary damages.

The County reserves the right to modify from time to time the specific types of information provided or the format of the

presentation of such information, to the extent necessary or appropriate in the judgment of the County; provided that the County

agrees that any such modification will be done in a manner consistent with the Rule.

An "Undertaking to Provide Notice of Material Events" to this effect shall be provided to the purchaser(s) at closing.

APPENDIX - E

FORM OF BOND COUNSEL’S OPINION

May 1, 2020

County of Madison

State of New York

Re: County of Madison, New York

$16,000,000 Bond Anticipation Notes, 2020

Ladies and Gentlemen:

We have been requested to render our opinion as to the validity of an issue of $16,000,000 Bond Anticipation

Notes, 2020 (the "Obligation"), of the County of Madison, State of New York (the "Obligor"), dated May 1, 2020, in the

denomination of $_________, bearing interest at the rate of . % per annum, payable at maturity, and maturing

April 30, 2021.

The Notes will not be subject to redemption prior to maturity.

We have examined:

(1) the Constitution and statutes of the State of New York;

(2) the Internal Revenue Code of 1986, including particularly Sections 103 and 141 through 150 thereof, and the

applicable regulations of the United States Treasury Department promulgated thereunder (collectively, the “Code”);

(3) an arbitrage certificate executed on behalf of the Obligor which includes, among other things, covenants, relating

to compliance with the Code, with the owners of the Obligation that the Obligor will, among other things, (i) take all actions on its

part necessary to cause interest on the Obligation not to be includable in the gross income of the owners thereof for Federal income

tax purposes, including, without limitation, restricting, to the extent necessary, the yield on investments made with the proceeds of

the Obligation and investment earnings thereon, making required payments to the Federal government, if any, and maintaining

books and records in a specified manner, where appropriate, and (ii) refrain from taking any action which would cause interest on

the Obligation to be includable in the gross income of the owners thereof for Federal income tax purposes, including, without

limitation, refraining from spending the proceeds of the Obligation and investment earnings thereon on certain specified purposes

(the “Arbitrage Certificate”); and

(4) a certificate executed on behalf of the Obligor which includes, among other things, a statement that compliance

with such covenants is not prohibited by, or violative of, any provision of local or special law, regulation or resolution applicable

to the Obligor.

We also have examined a certified copy of proceedings of the finance board of the Obligor and other proofs authorizing

and relating to the issuance of the Obligation, including the form of the Obligation. In rendering the opinions expressed herein we

have assumed (i) the accuracy and truthfulness of all public records, documents and proceedings, including factual information,

expectations and statements contained therein, examined by us which have been executed or certified by public officials acting

within the scope of their official capacities, and have not verified the accuracy or truthfulness thereof, and (ii) compliance by the

Obligor with the covenants contained in the Arbitrage Certificate. We also have assumed the genuineness of the signatures

appearing upon such public records, documents and proceedings and the certifications thereof.

In our opinion:

(a) The Obligation has been authorized and issued in accordance with the Constitution and statutes of the State of New York and

constitutes a valid and legally binding general obligation of the Obligor, all the taxable real property within which is subject to

the levy of ad valorem taxes to pay the Obligation and interest thereon, subject to applicable statutory limitations; provided,

however, that the enforceability (but not the validity) of the Obligation: (i) may be limited by any applicable bankruptcy,

insolvency or other law now existing or hereafter enacted by said State or the Federal government affecting the enforcement of

creditors' rights, and (ii) may be subject to the exercise of judicial discretion in appropriate cases.

(b) The Obligor has the power to comply with its covenants with respect to compliance with the Code as such covenants relate to

the Obligation; provided, however, that the enforceability (but not the validity) of such covenants may be limited by any

applicable bankruptcy, insolvency or other law now existing or hereafter enacted by said State or the Federal government

affecting the enforcement of creditors' rights.

(c) Interest on the Obligation is excluded from gross income for federal income tax purposes under Section 103 of the Internal

Revenue Code of 1986, and is exempt from personal income taxes imposed by the State of New York and any political

subdivision thereof (including The City of New York). Interest on the Obligation is not a specific preference item for purposes

of the federal alternative minimum tax. We express no opinion regarding other tax consequences related to the ownership or

disposition of, or the amount, accrual or receipt of interest on, the Obligation.

Certain agreements, requirements and procedures contained or referred to in the Arbitrage Certificate and other relevant

documents may be changed and certain actions (including, without limitation, economic defeasance of the Obligation) may be

taken or omitted under the circumstances and subject to the terms and conditions set forth in such documents.

The opinions expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and

cover certain matters not directly addressed by such authorities. Such opinions may be affected by actions taken or omitted or

events occurring after the date hereof. Accordingly, this opinion is not intended to, and may not, be relied upon in connection with

any such actions, events or matters. Our engagement with respect to the Obligation has concluded with their issuance, and we

disclaim any obligation to update this opinion. We have assumed, without undertaking to verify, the accuracy of the factual

matters represented, warranted or certified in the documents. Furthermore, we have assumed compliance with all covenants and

agreements contained in the Arbitrage Certificate, including without limitation covenants and agreements compliance with which

is necessary to assure that future actions, omissions or events will not cause interest on the Obligation to be included in gross

income for federal income tax purposes. We call attention to the fact that the rights and obligations under the Obligation and the

Arbitrage Certificate and their enforceability may be subject to bankruptcy, insolvency, reorganization, arrangement, fraudulent

conveyance, moratorium or other laws relating to or affecting creditors’ rights, to the application of equitable principles, to the

exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against municipal corporations such as

the Obligor in the State of New York. We express no opinion with respect to any indemnification, contribution, penalty, choice of

law, choice of forum, choice of venue, or waiver provisions contained in the foregoing documents.

The scope of our engagement in relation to the issuance of the Obligation has extended solely to the examination of the

facts and law incident to rendering the opinions expressed herein. Such opinions are not intended and should not be construed to

express or imply any conclusion that the amount of revenues or moneys of the Obligor legally available will be sufficient to enable

the Obligor to pay the principal of or interest on the Obligation as the same respectively become due and payable. Reference

should be made to the Official Statement prepared by the Obligor in relation to the Obligation for factual information which, in the

judgment of the Obligor, could materially affect the ability of the Obligor to pay such principal and interest. While we have

participated in the preparation of such Official Statement, we have not verified the accuracy, completeness or fairness of the

factual information contained therein and, accordingly, we express no opinion as to whether the Obligor, in connection with the

sale of the Obligation, has made any untrue statement of a material fact or omitted to state a material fact necessary in order to

make any statements made, in the light of the circumstances under which they were made, not misleading.

Very truly yours,

/s/ ORRICK, HERRINGTON & SUTCLIFFE LLP