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HomeMy WebLinkAbout2008-2009.AuditReportCITY OF CAPE GIRARDEAU, MISSOURI Cape Girardeau; Missouri For the Year Ended June 30, 2009 ANNUAL FINANCIAL REPORT BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants CITY OF CAPE GIRARDEAU. MISSOURI TABLE OF CONTENTS FINANCIAL SECTION Pale No. INDEPENDENT AUDITORS' REPORT 1-2 REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENTS DISCUSSION AND ANALYSIS 3-18 BASIC FINANCIAL STATEMENTS GOVERNMENT -WIDE FNANCIAL STATEMENTS STATEMENT OF NET ASSETS 19-20 STATEMENT OF ACTIVITIES 21-22 FUND FNANCIAL STATEMENTS GOVERNMENTAL FUNDS FINANCIAL STATEMENTS BALANCE SHEET 23-24 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS 25 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 26 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 27 PROPRIETORY FUNDS FINANCIAL STATEMENTS STATEMENT OF NET ASSETS 28-29 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS 30 STATEMENT OF CASH FLOWS 31-32 FIDUCIARY FUNDS FINANCIAL STATEMENTS STATEMENT OF NET ASSETS 33 NOTES TO BASIC FINANCIAL STATEMENTS REQUIRED SUPPLEMENTAL INFORMATION 34-74 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL 75 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - AIRPORT 76 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PARK & RECREATION 77 NOTES TO BUDGETARY COMPARISON SCHEDULES 78-81 SCHEDULE OF FUNDING PROGRESS 82 SUPPLEMENTAL INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - VISION 2000 83 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONVENTION AND TOURISM 84 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - DOWNTOWN BUSINESS DISTRICT 85 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - HEALTH STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - MOTOR FUEL TAX 87 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CAPITAL IMPROVEMENT SALES TAX - FLOOD CONTROL 88 STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CAPITAL IMPROVEMENT SALES TAX - WATER SYSTEM IMPROVEMENTS 89 STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - TRANSPORTATION SALES TAX TRUST FUND 90 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CAPITAL IMPROVEMENT SALES TAX - SEWER SYSTEM IMPROVEMENTS 91 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - TRANSPORTATION SALES TAX TRUST FUND II 92 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - FIRE SALES TAX 93 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PUBLIC SAFETY TRUST 94 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - DEBT SERVICE 95 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL CAPITAL IMIPROVEMENTS 96 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - STREET IMPROVEMENTS 97 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PARK IMPROVEMENTS 98 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - FAU GRANT PROJECTS 99 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - COMMUNITY DEVELOPMENT BLOCK GRANT PROJECTS 100 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCES - BUDGET AND ACTUAL - TRANSPORTATION SALES TAX TRUST FUND III 101 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PARK STORM WATER SALES TAX 102 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PARK STORM WATER SALES TAX - CAPITAL 103 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - HOUSING DEVELOPMENT GRANTS 104 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SEWER 105 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - WATER 106 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SOLID WASTE 107 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GOLF COURSE 108 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SOFTBALL COMPLEX 109 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - MANAGEMENT INFORMATION SYSTEMS 110 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - FLEET MANAGEMENT 111 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - FRINGE BENEFITS 112 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - RISK MANAGEMENT 113 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - EQUIPMENT REPLACEMENT 114 ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 115-116 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH G0VERATMENT A UDITING STANDARDS 117-118 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 119-121 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 122 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 123-125 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 126 BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants 16 So. Silver Springs Road 4018 Sycamore 105 So. Hope Cairo, Illinois 62914 Cape Girardeau, Missouri 63703 Telephone (618) 734-3300 Telephone (573 ) 334-7971 Jackson, Missouri 3755 Telephone (573) 243--3991 Facsimile (618) 734-3303 Facsimile (573) 334-8875 Facsimile (573) 243-3186 E\TDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Cape Girardeau, Missouri (the City), as of and for the year ended June 30, 2009, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities. the business -type activities, each major fund, and the aggregate remaining fund information of the City of Cape Girardeau, Missouri as of June 30, 2009. and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2009. on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 1 The management's discussion and analysis and budgetary comparison information on pages 3 through 18 and 75 through 81 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Cape Girardeau, Missouri's basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, and is also not a required part of the basic financial statements of the City of Cape Girardeau, Missouri. The combining and individual nonmajor fund financial statements and the Schedule of Expenditures of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Cape Girardeau, Missouri December 17, 2009 REQUIRED SUPPLEMENTARY INFORMATION CITY OF CAPE GIRARDEAU, MISSOURI Management's Discussion and Analysis The discussion and analysis of the City of Cape Girardeau's financial performance provides an overall review of the City's financial activities for the fiscal year ended June 30. 2009. The intent of this discussion and analysis is to look at the City's financial performance as a whole. Readers should also review the basic financial statements and related notes to those statements to enhance their understanding of the City's financial performance. Financial Highlights o The assets of the City of Cape Girardeau exceeded its liabilities at the close of the most recent fiscal year by $222,471,493 (net assets). Of this amount, $30,705,365 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. o As of the close of the current fiscal year, the City of Cape Girardeau's governmental funds reported combined ending fund balances of 542,864,779. Approximately 60.0 percent of this total amount, $25,710,828 is available for spending at the government's discretion (unreserved fund balance). o At the end of the current fiscal year. the unreserved fund balance for the general fund was $522,700 or 2.2 percent of total general fund expenditures and transfers. o At the end of the current fiscal year, general fund balance reserved for emergencies was $3,164,101 or 13.4 percent of total general fund expenditures and transfers. During the current year, pursuant to of an emergency that was declared in the previous year as a result of a severe ice storm, $137.270 was used from the balance reserved for emergencies to pay for the installation of generators at City Hall and the City's community center. o The City implemented GASB Statement No. 45 during the current year. This pronouncement requires that the expense for non -pension postemployment benefits be recognized as earned by employees and not when paid by the City. As a result additional expenses and liabilities were recognized this year totaling $816220 and $113,191 in the 3 governmental and business -type activities, respectively. o The City of Cape Girardeau's fixed assets increased $9.059,594 during the year. Net fixed asset additions of $18.597,710 were made during the year. Depreciation for the current fiscal year reduced fixed assets by $9.538,116. The City of Cape Girardeau's total long-term debt increased by $13,933,068 (22.1 percent) during the current fiscal year. During the year the City issued leasehold revenue bonds totaling $19,740,196 (net of discount) to fund various park and storm water improvements and entered into a $125,000 note payable to finance a portion of the land costs for a new downtown parking lot. Regularly scheduled principal payments and amortization of bond premiums / discounts resulted in outstanding long-term debt being reduced by $5.932,128. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Cape Girardeau's basic financial statements. The City of Cape Girardeau'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 other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Cape Girardeau's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes CITY OF CAPE GIRARDEAU, MISSOURI in the net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish fimctions of the City of Cape Girardeau that are principally supported by taxes and intergovernmental revenues (govermmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Cape Girardeau include administrative services, development services, parks and recreation, public safety. and public works. The business - type activities of the City include sewer, water. and solid waste utilities and golf course and softball complex operations. The government - wide financial statements can be found on pages 19 to 22 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Cape Girardeau, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statement, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of the 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 presented for governmental activities in the government -wide il financial statements. By doing so, readers may better understand the long-term impact of the government's near tern financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures. and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Cape Girardeau maintains 29 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues. expenditures, and changes in fund balances for the general. airport, parks and recreation, transportation trust 111, and parks projects from parks sales tax funds, which are considered, or have been designated, to be major funds of the City. Data from the other governmental funds are combined into a single. aggregated presentation. The City of Cape Girardeau adopts annual appropriated budgets for all its governmental funds, excluding the following capital project funds which have project length budgets: water system improvements, storm water improvements from parks / storm water sales tax and park improvements from parks / storm water sales tax. Budgetary comparison statements have been provided for all major governmental funds as part of the financial statements to demonstrate compliance with this budget. Budgetary comparison statements for the remaining governmental funds are present as supplemental information. The basic governmental fund financial statements can be found on pages 23 to 27 of this report. Proprietary funds. The City of Cape Girardeau maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City used enterprise funds to account for its sewer, water. and solid waste utilities and its golf course and softball complex operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for operation of its management information systems, fleet management. self-insured employee benefits and workmen's compensation programs, and its internal equipment leasing program. CITY OF CAPE GIRARDEAU, MISSOURI Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sewer, water. and solid waste utilities and golf course and softball complex operations. All of these are considered, or have been designated, to be major funds of the City. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. The basic proprietary fund financial statements can be found on pages 28 to 32 of this report. Budgetary comparison statements for all the proprietary funds are present as supplemental information. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found beginning on page 34 of this report. Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Cape Girardeau, assets exceeded liabilities by $222,471.493, an increase of $6.564,834 (3.0%). The City's $182,845.071 net investment in capital assets (land, buildings, machinery, and Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, Net of related debt Restricted Unrestricted Total net assets equipment less related outstanding debt used to acquire those assets) makes up 82.2% of the City's net assets. This net investment increased $14,696.740 (8.7%) during the current fiscal year. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net assets (4.0 percent) represent resources that are subject to external restrictions on how they may be used. The portion of the City's net assets subject to external restrictions was $112.953 (1.3%) more than the previous year. The remaining balance of net assets ($30,705,365) is unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. This reflects an $8,244,859 (21.2%) decrease over the previous year. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets. both for the government as a whole, as well as for its separate governmental and business -type activities. The same situation was true of the prior year. City of Cape Girardeau's Net Assets Governmental Business -type Activitv Activities Total 2009 2008 2009 2008 2009 2008 51,979,663 37,356,399 14,556,300 14,955,466 66,535,963 52,311,865 149,105,969 139,183,129 92,464,329 93,327,575 241,570,298 232,510,704 201,085,632 176,539,528 107,020,629 108,283,041 308,106,261 284,822,569 43,394,183 27,478,600 25,970,177 29,323,667 69,364,360 56,802,267 10,250,504 5,682,485 6,019,904 6,431,158 16,270,408 12,113,643 53,644,687 33,161,085 31,990,081 35,754,825 85,634,768 68,915,910 119,771,644 107,745,365 63,073,427 60,402,966 182,845,071 168,148,331 4,622,706 4,728,902 4,298,351 4,079,202 8,921,057 8,808,104 23,046,595 30,904,176 7,658,770 8,046,048 30,705,365 38,950,224 147,440,945 143,378,443 75,030,548 72,528,216 222,471,493 215,906,659 5 CITY OF CAPE GIRARDEAU, MISSOURI Governmental activities. Governmental activities increased the City of Cape Girardeau's net assets by $4,078.269 (compared to $4,962,682 in the previous fiscal year). This amount combined with the use of $7,857,581 (25.4%) of the previous year's unrestricted net assets funded 99.2% of the $12.026,279 (11.2%) increase in net investments in capital assets during the fiscal year. 01 City of Cape Girardeau's Change in Net Assets Governmental Business -type activities activities Total 2009 2008 2009 2008 2009 2008 Revenues: Program revenue: Charges for service 3,907,466 3,708,717 12,690,661 12,354,339 16,598,127 16,063,056 Operating grants and contributions 1,611,839 1,096,778 149,306 101,738 1,761,145 1,198,516 Capital grants and contributions 1,667,933 1,800,663 519,340 1,550,464 2,187,273 3,351,127 General revenues: Property taxes 1,944,680 1,878,043 - - 1,944,680 1,878,043 Sales taxes 21,981,847 19,442,199 - 21,981,847 19,442,199 Othertaxes 7,990,413 8,101,466 - - 7,990,413 8,101,466 Other 1,666,740 1,828,812 743,332 744,391 2,410,072 2,573,203 Total revenues 40,770,918 37,856,678 14,102,639 14,750,932 54,873,557 52,607,610 Expenses: Administrative 6,415,924 6,236,764 - - 6,415,924 6,236,764 Capital Improvements 632,998 412,001 - 632,998 412,001 Development Services 2,010,202 1,808,457 - 2,010,202 1,808,457 Interest and other costs 1,388,445 1,278,387 - 1,388,445 1,278,387 Parks and Recreation 3,873,940 3,351,269 - 3,873,940 3,351,269 Public Safety 12,512,216 11,231,769 - - 12,512,216 11,231,769 Public Works 6,028,091 5,745,817 - - 6,028,091 5,745,817 Sewer - - 5,495,680 5,097,187 5,495,680 5,097,187 Water - - 5,759,009 5,769,156 5,759,009 5,769,156 Solid Waste - - 3,146,307 2,933,006 3,146,307 2,933,006 Golf Course - - 522,990 545,128 522,990 545,128 Softball Complex - - 507,154 464,179 507,154 464,179 Total expenses 32,861,816 30,064,464 15,431,140 14,808,656 48,292,956 44,873,120 Increase in net assets before transfers 7,909,102 7,792,214 (1,328,501) (57,724) 6,580,601 7,734,490 Transfers (3,830,833) (2,829,532) 3,830,833 2,829,532 - - Increase in net assets 4,078,269 4,962,682 2,502,332 2,771,808 6,580,601 7,734,490 Net assets -beginning of year 143,378,443 138,387,051 72,528,216 69,801,354 215,906,659 208,188,405 Prior period adjustments (15,767) 28,710 - (44,946) (15,767) (16,236) Net assets -end of year 147,440,945 143,378,443 75,030,548 72,528,216 222,471,493 215,906,659 01 CITY OF CAPE GIRARDEAU, MISSOURI Activity in the following revenue and expense items should be noted for the current fiscal year: Revenues from governmental activities Charges for service increased $198,749 (5.4%) over the previous year. During the year special event revenues, net margin on fuel sales, and rental revenues at the Cape Girardeau Regional airport decreased $92,777 (72.3%), $79,430 (28.5%), and 35,924 (17.2%), respectively, from revenues earned in the previous year. Significant increases from the previous year were: (1) internal charges were up $219.655 (25.6%), (2) development related user fees were up $112,042 (62.8%) and (3) recreation special events and league fees were up $50,898 (62.8%). In the previous year the airport had a week -end air show supported by sponsorships and gate receipts. During the current year the City had a scaled down air show at the City's Fourth of July celebration that was supported only by sponsorship revenue. Although this change resulted in a decline of the special event revenue, it did lower the net cost of the air show by $21.968 (52.7%) from the previous year. The decline in the net margin in fuel sales at the airport reflected a 27.7% decrease in the number of gallons of fuel sold at the airport during the past year. Lease revenue from the manufacturing facility located on the airport premises declined $39,000 (100%) this year. Three additional months of rentals were deferred this year. At the end of the current year $383,000 or 28 months of rental payments have been deferred on this facility during the past three years. Internal staff expense charged to capital projects increased significantly this year reflecting the progress made on projects during the year. The increase in development related user fees this year was the result of increased building permit and plan review fees associated with two large hospital expansion projects and one elderly apartment complex and inspection fees associated with a large residential subdivision. The increase in recreation special event and league revenue resulted from increased fees and activity during the year and also resulted in a $21.627 (37.9%) increase in costs related to these activities. Operating grants and contributions were $515,061 (47.0%) more than the previous year. This year the City received a historic Preservation Courthouse Grant from the Missouri Department of Natural Resources and intergovernmental revenue from the County totaling 581.770 to upgrade the HVAC system at the Common Pleas Courthouse and a $250.000 Community Development Block Grant that was passed through to the developer of a senior citizen apartment complex. No revenues were received from these grants in the previous year. During the current year the City received $364,823 in payments from FEMA and SEMA for the reimbursement of costs associated with various natural disaster events during the year and $116,638 from a SAFER grant to cover the portion of the personnel costs of three additional firefighters. During the previous year payments from these sources were $279,929 and $5,616 respectively. • Capital grants and contributions decreased $132.730 (7.7%) over the previous year. In the current year $696.681 of donated assets and infrastructure were recorded. This was 5203,236 (29.7%) less than the previous year. Benefiting property owners were charged $33,331 for a portion of this year's infrastructure costs. This was $15,044 (31.1%) less than the previous year. The remaining grant and contribution revenue was $937,921 which was $85,550 (10.0%) more than the previous year. • Property tax revenue was $66,637 (3.5%) more than the previous year. Final adjusted assessed value of real estate increased $12,403,432 (3.0%) over the previous year. New construction and annexed property accounted for $11,591,480 and $46,930 of this increase, respectively. Final adjusted assessed value of personal property decreased $1.651.378 (1.5%) over the previous year. State law allowed the City to increase its levy rate by 1.3% during the current year. 7 CITY OF CAPE GIRARDEAU, MISSOURI Revenues from governmental activities (continued) Sales tax revenue was 53.9% of the total revenue during the current year vs. 51.4% in the previous year. This year's revenue, which included the new parks / storm water sales tax that went into effect October 1, 2008, was $2,539,648 (13.1%) more than the previous year. Excluding the effects of the new tax, sales tax revenue would have decreased $309,926 (1.6%) from the previous year. From fiscal year ending June 30, 2006 through fiscal year ending June 30, 2008 sale tax revenue had annual growth rates of 4.1%, 2.8% and..6%, respectively. During the first weekend in August customers can purchase limited amounts of school supplies, clothing, and computers without being charged sales tax. It is estimated that the holiday may reduce annual revenue by as much as .25%. • Other taxes decreased $111,053 (1.4%) from the previous year. Convention and tourism taxes and liquor license taxes grew $46.796 (2.8%) and, $4,384 (7.4%) respectively. Motor fuel taxes. franchise taxes, other taxes, business licenses decreased $88,978 (63%), $65.121 (1.8%), $4,675 (2.8%) and $3,459 (.3%) respectively. The increase in the convention and tourism taxes was comprised of a $35,347 (3.2%) increase in restaurant taxes and an $11,449 (2.0%) increase in hotel / motel taxes. Ameren paid 79.7% of the total franchise tax collected during the year based on its electricity and natural gas revenues. During the current year Ameren paid $95.777 (3.5%) more than the previous year. The previous year's payments had been reduced by approximately $100,000 as a result of a rebate given to its natural gas customers during that year. Franchise tax paid during the current year by the City's telecommunication and cable TV service providers decreased $145,405 (40.1 %) and $15,168 (4.0%), respectively, from the previous year. During the previous year the City's telecommunication providers had paid $176,334 in back taxes as a result of the settlement of a state-wide law suit. During the current year the City received $27.500 in back taxes from its telecommunication service providers. During the previous year a $30.000 charge to the City's cable TV provider for support of the public access channel expired. In November of the previous year the State began withholding from its monthly motor fuel tax distribution to the City amounts that had previously been overpaid to the City in error during the three previous years. This additional withholding, which will expire at the end of the next fiscal year, was a contributing factor in this year's motor fuel tax reduction. Another contributing factor in this year's reduction was a $41.274 (18.2%) decline in the amount of state motor vehicle sales tax that distributed to the City. • Other revenue decreased $162.072 (8.9%) over the previous year. Investment earnings. which account for 94.1 % of other revenue, decreased $162.601 (10.4%). Expenses from governmental activities Administrative expenses totaled $6,415,924 this year which was $179,160 (2.9%) more than the previous year. Excluding personnel costs, the most significant cost item included in this category is the City's support of the "River Campus Project". This is a joint City/University project. The City agreed to make payments from its convention and tourism taxes to pay principal and interest on bonds issued by the University to fund $8.9 million of construction costs related to a campus, performance center. and museum on property that oversees the Mississippi River. The campus began operating in the fall of 2007. The total cost of the project exceeded $60 million. The city's payments to Southeast Missouri State University increased $28,766 (2.5%) to $1,199,768 this year. CITY OF CAPE GIRARDEAU, NIISSOUTU Expenses from governmental activities (continued) Costs of development services, parks and recreation, and public .works employees and related overhead charged to other City funds for services and various construction projects are included as part of administrative services costs. In the current year these costs totaled $856,488. This was $218,043 (34.1%) more than the previous year. This year's costs included $113,871 in costs of public works employees used for the solid waste fund's leaf and limb pickup programs. Almost all remaining costs related to various construction projects. Internal charge revenue is included in charges for services revenues equal to these costs. Current revenues collected from the hotel, motel, and restaurant taxes not used for the operation of the Convention Visitors Bureau are committed to payoff the "River Campus" bonds. Unspent hotel, motel. and restaurant taxes collected before November 2004 are used to fund various tourism related projects. During the current year the City spent $89,976 on such projects. a decrease of $77,491 (46.3%) from the previous year. At the,end of the current year there was still $610,460 available for expenditure on future tourism related projects. The additional current year's costs resulting from implementing GASB 45 were $58,201. • Capital improvements expenses totaled $632,998 this year which was $220,997 (53.6%) more than the previous year. These costs represent street and other capital projects that did not meet the City's $5,000 capitalization threshold (the amount at which the expenditure would be recorded as a capital asset). • Development services expenses totaled $2,010.202 this year which was $201.745 (11.2%) more than the previous year. During the current fiscal year the City made economic development payments totaling $211279 as reimbursements on development agreements entered into in previous fiscal years. These payments were $29,338 (16.1 %) more than were made in the previous year. During the current year the City recognized $250,000 in costs associated with a grant that was passed through to a local developer. The developer used the money to purchase an old school builduig in the City from the public school system. This building was reconstructed into a senior citizen apartment complex during the year. The $250.000 grant is included in the City's operating grant and contribution revenue for the current year. Development services expenses included $239,986 is costs associated with neighborhood improvement projects. The current year's costs for neighborhood improvement projects were $17,837 (7.4%) less than the previous year. Associated grant revenue totaling $223,121 is included in the City's operating grant and contribution revenue for the current year. General community development costs included in this year's development services expense were only $13,040. This was 65,627 (83.4%) less than the previous year. Development services personnel costs decreased $41,027 (4.4%) this year over the previous year. The key factor for this decrease was the allocation of more personnel costs to capital projects of the City. Personnel costs are charged to the City's capital projects based on hours worked and total hourly costs. These costs are included in the administrative services function. The additional current year's costs resulting from implementing GASB 45 were $65,196. Interest and other costs totaled $1,388,445 this year which was $110,058 (8.6%) more than the previous year. In March 2009 the City issued $19,885,000 of bonds to finance various park and storm water projects. In June 2009 the City entered into a $125.000 note payable to finance a portion of the cost of land for a new downtown parking lot. Interest on this new debt totaled $198.483 during the current year. Scheduled principal and interest payments were made on all remaining debt during the year. • Parks and recreation expenses totaled $3,873,940 this year which was $522,671 (15.6%) more than the previous year. This year's expenditures include $254,684 in equipment and vehicle purchases that did not meet the City's $5,000 capitalization threshold. All of these expenditures were funded by a new parks / storm water sales 9 CITY OF CAPE GIRARDEAU, MISSOURI tax that went into effect October 1, 2008. The golf course spent $150.990 on new carts during the current year. These costs are included in the above equipment and vehicle purchases. Personnel costs included in this years expenses totaled $2,140,644 which was SI 65,582 (8.4%) greater than the previous year. This year's costs included 5 new full-time employees and a 6% mid -year increase for its minimum wage employees. The cost of the new employees was funded by the new parks / storm water sales tax. The additional current year's costs resulting from implementing GASB 45 were $99,776. Public safety expenses totaled $12,512,216 this year which was $1.280.447 (11.4%) more than the previous year. Personnel costs totaled $9,581.460 during the current year. This was 511.996 (5.6%) more than the previous year. Increased workmen's compensation and health coverage costs accounted for 65.7% of the personnel cost increase. Personnel costs also included 3 new fire fighter positions that were partially funded by a grant. Associated grant revenue totaling $116,638 is included in the City's operating grant and contribution revenue for the current year. Public safety expenses include $68,168 for putting flashing beacons at school sites throughout the City. The costs were funded through a "Safe Routes to School" grant. Associated grant revenue totaling $70,462 is included in the City's capital grant and contribution revenue for the current year. Other significant cost increases during the current year were depreciation which increased 24.0% from the previous year to $759.642 and fleet maintenance costs which increased 26.8% from the previous year to $253.387. The additional current year's costs resulting from implementing GASB 45 were $505,098 Public works expenses totaled $6,028.091 this year which was $282,274 (4.9%) more than the previous year. Included in this year's expense is depreciation expense totaling $3.943,357 and personnel costs totaling $898.497. These expenses increased $117,274 (3.1%) and $116.582 (14.9%). respectively. from the previous year. Increased workmen's compensation and health coverage costs accounted for 51 % of the personnel cost increase. The additional current year's costs resulting from implementing GASB 45 were $47,268. sot tbal CWPL-x Golf course .. ■ Revenue e Revenue Sold Waste _ Sew er The illustration above makes it clear that all the governmental activities and business -type activities of the City with the exception of water and solid waste required a subsidy by taxpayers. General revenues in these activities, which include transfers from special revenue sales taxes, were sufficient to provide adequate subsidies for both the governmental and business -type activities. 10 CITY OF CAPE GIRARDEAU, MISSOURI Revenues by Source — Governmental Activities Revenues for governmental activities other taxes 196% sales taxes - 53.9% Property taxes 4.tf% - 4.1% Operating %Charge for Other grants : Service 4.1% 39% 9.6% The above chart summarizes the sources of revenue from government activities. The three main sources of revenue and their share of total governmental revenues are sales tax (53.9%). other taxes (19.6%) and charges for services (9.6%). The City's general sales tax represents 39.1 percent of the total sales tax revenue and 45.0 percent of the total general fund revenues. The remaining sales taxes are for parks, storm water, transportation. sewer, water, and public safety prof ecu. The general fund accounts for 62.0% and 68.4% of the other tax and service charge revenue respectively. This represents 25.9% and 14.0% of the total general fund revenues respectively. Business -type activities. Business -type activities increased the City of Cape Girardeau's net assets by $2,502,332 (compared to $2,771,808 in the previous fiscal year). Excluding transfers from government activities, business -type net assets decreased $1,328,501 and $57,724. respectively, during the last two years. These decreases were offset by transfers from governmental activities totaling 53,830,833 and $2,829,532, respectively, during the past two years. II Transfers of sales tax revenue for bond payments totaling $2,210,261 and operating subsidy transfers from the general and parks / storm water sales tax funds totaling $670.851 make up 57.7% and 17.5% of this year's total transfers, respectively. Last year these transfers totaled $2,198,604 and $472,744, respectively and represented 77.7% and 16.7% of that year's transfers. Transfers of water system improvements from the capital projects fund increased $796.242 from the previous year to S834,426 this year. The net change in assets before transfers and general revenues in the sewer, water, solid waste, golf. and softball operations totaled $(2,155,036), $402,981, 233,186, $(203.158), and $(349,806), respectively, this year. This compares to $(737,275), $168,835, 202,608, $(132,568), and $(303,715), respectively, in the previous year. Revenues for business -type activiies Capttal grants 3.79e Other 53% Operating Grants to% Chagefor seance 900% CITY OF CAPE GIRARDEAU, MISSOURI Financial Analysis of the City's Funds As noted earlier, the City of Cape Girardeau uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end of a fiscal year. As of June 30, 2009, the City's governmental funds reported combined ending fund balances of $42,864,779, an increase of $12,861,590 (42.9%) from the prior year. Unreserved fund balances, which are available for spending at the City's discretion, account for $25,696.560 (59.9%) of the total fund balances. The remainder of the fund balances are reserved to indicate that they are not available for new spending because they have already been committed 1) to meet the City's Charter required emergency reserves ($4,107,607). 2) to fund purchase orders open at the end of the year ($11,351.876), 3) to set aside fund balance not currently available for expenditure equal to long- term loans due from other City funds ($1,0-38,196),4) to pay debt service ($260.486), and 5) restricted to a specific use ($410,054). The general fund is the chief operating fund of the City. At the end of fiscal year ending June 30, 2009. unreserved fund balance of the general fund was $522,700 while total fund balance was $4,963,577. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents only 2.2 percent of total general fund expenditures including transfers. However, included in the reserved fund balance is $3.164,101, which had been reserved to meet the City Charter's emergency reserve requirement. This amount represents 13.4 percent of total general fund expenditures including transfers and could be used if an emergency was declared by the City Council. 12 The Governmental Funds Statement of Revenue, Expenditures, and Changes in Fund Balance shows that the total fund balance of the City of Cape Girardeau's general fund decreased by $216,389 during the current fiscal year. However, the General Fund Statement of Revenues, Expenditures, and Changes of Fund Balance prepared on a budget basis shows a current fiscal year increase of $40,858. Differences between the amounts reflected in the two statements can be found in the Notes to Budgetary Comparison Schedules found on pages 78 - 81. The original adopted general fund budget for the fiscal year ending June 30, 2009 was balanced with the projected use of $37,899 in accumulated fund balances from previous years. The actual general fund results increased fund balances by $40,858. Significant deviations from this budget are detailed below: o Sales tax revenue was $135,831 (1.56%) less than the previous year, which was $347.774 (3.89%) less than projected for the adopted budget. The amount projected in the adopted budget assumed I% growth for fiscal year ending June 30, 2008 and 2% growth for fiscal year ending June 30, 2009. Actual revenue for fiscal year ending June 30, 2008 was only .57% greater than the previous year. o Franchise tax revenue was $66,021 (1.8%) less than the previous year. The main factor leading to this decrease was a $145,405 (40.1 %) decrease in revenues collected from telecommunication service providers. In the previous year, as a result of settlement of a state-wide law suit, the City began collecting taxes from all providers of telecommunication service. Approximately $176,334 of the telecommunication related franchise taxes received in the previous year was for prior years' taxes. This year only $27.500 of taxes collected related to prior years. Approximately 2/3 of this year's reduction in the telecommunication franchise tax revenue was offset by a $95,777 (3.5%) increase in franchise tax revenue from the City's electric and natural gas provider. This increase resulted mainly from a rebate given to natural gas customers in the previous year that reduced that year's franchise tax revenue. CITY OF CAPE GIRARDEAU, MISSOURI Franchise tax revenue was $113.112 (3.3%) more than projected for the adopted budget. Franchise taxes from electric and natural gas utilities, telecommunications. and cable TV exceeded their budgets by $50360 (1.8%), $57,472 (36.0%), and $11,682 (3.3%). o Real estate and personal property tax revenue increased $43,499 (2.9%) over the previous year which was 543,290 (2.7%) more than projected for the budget. The final assessed values for real estate grew 3.0% while the final assessed values for personal property declined 1.1% from the previous year. The adopted budget for fiscal year ending June 30, 2009 had assumed 1.0% and 2.0% assessed value growth respectively. o Business license revenue declined $3.459 (.3%) over the previous year but still exceeded the projected budget by $5,791 (.5%). The adopted budget for fiscal year ending June 30; 2009 had assumed 2% growth on projected revenue for fiscal year ending June 30, 2008. o Other license and permit revenue was $48.040 (25.4%) higher this year than the previous year which was $23,921 (11.2%) more than projected for the budget. Permit revenue associated with the local hospitals' expansion projects was the main contributor to this year's positive results. o Intergovernmental revenue exceeded revenue projected for the budget by $516,843 (87.2%). This year's intergovernmental revenue included $441.701 in disaster relief payments from state and federal agencies resulting from various natural disasters during the year and other capital grants totaling $108.468. The grant revenue for providing police security at the airport was $65,892 less than expected this year because of the lack of commercial air service at the airport for a good portion of the year. o Service charges were $48,533 (17.4%) greater than the previous year which was $33.892 (11.5%) more than projected in the budget. During the year the City received significant development and plan review 13 fees from one residential development and three commercial developments. o Internal charges were 5219,857 (25.2%) greater than the previous year which was $114.651 (11.7%) more than projected in the budget. During the year the City made better than anticipated progress on completion of its major capital projects. This resulted in more internal salaries being charged to these projects than had been anticipated by the budget. o Fines and forfeits revenue was 55.860 (.7%) more than the previous year despite a 9.9% decline in the number of traffic violation cases. Fines and forfeits revenue was $64,796 (7.6%) less than projected for the budget. The adopted budget for fiscal year ending June 30, 2009 had assumed revenue levels equal to fiscal year ending June 30, 2007actual results. o During the current fiscal year expenditures were $22,192 (.1 %) more than original budget. Debt service and capital expenditures exceeded the original budget by $11.686 (6.2%) and $174.022 (488.2%). Current operating expenditures were $163.516 (.9%) less than the original budget. o Transfers to other funds for operating subsidies and capital expenditures exceeded their original budgets by S 145,541 (3.9%) and $30.063 (51.0%) respectively. Additional transfers to the airport fund accounted for $204,463 of the additional operating subsidies. Proprietary funds. The City of Cape Girardeau's enterprise funds are all presented as major funds for purposes of this report. As a result, all statements related to the enterprise funds are presented at the government -wide level. The City does have Internal Service funds, which are reported in total on the Proprietary Fund Statement and consolidated with other governmental activities on the government - wide statements. CITY OF CAPE GIRARDEAU, MISSOURI General Fund Budgetary Highlights Total expenditures and transfer on the final amended budget were $1,368.500 (5.9%) more than the original adopted budget. The changes can be summarized as follows: $335,000 to cover costs associated with sinkhole mitigation, flash flooding, river floodine and winter storm events that occurred during the year which are included in current contingent expenses. These costs were funded by disaster relief payments from state and federal agencies. o $137,000 to cover costs to install generators at City Hall and the Osage Community Centre during the year which are included in current contingent expenses. These costs were funded from the emergency reserve fund. o $40.000 to cover additional operating expenses of the police division included in current public safety expenses. The additional operating expenses were funded by previous years' unspent donation revenue. o $9.500 to cover costs of repairing ice damage done to a maintenance building at Arena Park included in current parks and recreation expenses. o $85,000 to cover costs of replacing the HVAC system at the Common Pleas Courthouse included in development services capital outlay expenses. $81,770 of the additional costs was covered by intergovernmental revenue. o $92,000 for final payment on option to purchase land next to public works headquarters included in public works capital outlay expenses. This expenditure was previously appropriated in the previous fiscal year. o $500,000 general fund transfers to the airport and parks and recreation fund to cover the costs of projected operating deficits. Only $204,463 of this appropriation was actually used. 14 $165.000 general fund transfer to the community development block grant fund to cover local cost of land for a new downtown parking lot. Only $43,264 of this transfer was actually made because $125,000 of the land cost was eventually funded by debt. o $5,000 general fund transfer to the airport fund to cover the cost of a floor scrubber. This transfer was never made. Unused appropriations of development services ($140,000), parks and recreation ($5.000), public safety ($5.000), and public works ($23.000) were transferred to administrative in current operating expenses. Excess general fund revenues and unrestricted fund balances were used to fund all appropriations that did not have an identified funding source. Capital Assets and Debt Administration Capital Assets. The City of Cape Girardeau's investment in capital assets for its governmental and business -type activities as of June 30. 2009. amounts to $241,570,298 (net of accumulated depreciation). This investment in capital assets includes all land, buildings and system improvements, machinery and equipment, and infrastructure owned by the City. City Capital Assets 2.3% 492% 3.9% a Land ■ Buldngs/Epuipment O Infraslnietum 446% o ConstnPown in progress CITY OF CAPE GIRaRDEAU, MISSOURI Major capital asset events during the current fiscal year included the following: o Construction costs totaling $9,777,574 on approved transportation sales tax projects were incurred this year. This tax was originally approved to complete a specific list of street projects. which also included amounts for street repair and overlay. sidewalk construction and repair, and street light installation and upgrades. $76,538 in costs was also incurred during the year on street projects not included on the transportation sales tax list of projects. o Construction costs totaling $1,092,415 on water system projects were incurred this year. Major water system improvements included well drilling in the southern part of the City. adding water main extensions and the two-inch water main replacement program. o Construction costs totaling $745,156 were incurred for other improvements. These projects included hangar renovation at the airport, heating/cooling system upgrade at the Common Pleas court house. traffic signal upgrades. parking lot improvements in the downtown area, and trail construction. 15 o Construction costs totaling $529,698 on sewer system projects were incurred this year. A capital improvement sales tax was originally approved in 1994 to complete a specific list of improvements to the sewer system. Over $33,350.000 in revenue bonds have been issued through the State Revolving Loan Program to complete these projects. All of the projects on the list are now complete. o Police and fire station improvements in the amount of $129,231 were made possible by the passage of a Fire Sales Tax. o Total expenditures to complete the remodeling of the aviation terminal building at the Airport amounted to $72.485. This was partially funded by grant revenue. o hi April 2008 voters approved a''/� cent sales tax to pay for storm water and park improvement projects. $247.760 and $1,904.347 were spent respectively during the current year on these projects. Additional information about the City's capital assets can be found in note D to the financial statements. City of Cape Girardeau's Capital Assets (net of depreciation) Governmental Business -type Activity Activities Total 2009 2008 2039 2008 2009 2008 Land 5,370,111 4,948,851 161,990 161,990 5,532,101 5,110,841 Buildings and system improvements 12,253,179 12,006,556 2,204,432 2,401,870 14,457,611 14,408,426 Improvements other than buildings 9,890,277 10,438,168 85,769,063 86,308,300 95,659,340 96,746,468 Equipment 5,902,960 4,367,125 3,0E8,396 3,002,885 8,961,356 7,370,010 Infrastructure 107,513,636 103,172,322 - - 107,513,636 103,172,322 Construction in progress 8,175,806 4,250,107 1,270,448 1,452,530 9,446,254 5,702,637 Total 149,105,969 139,183,129 92,464,329 93,327,575 241,570,298 232,510,704 Major capital asset events during the current fiscal year included the following: o Construction costs totaling $9,777,574 on approved transportation sales tax projects were incurred this year. This tax was originally approved to complete a specific list of street projects. which also included amounts for street repair and overlay. sidewalk construction and repair, and street light installation and upgrades. $76,538 in costs was also incurred during the year on street projects not included on the transportation sales tax list of projects. o Construction costs totaling $1,092,415 on water system projects were incurred this year. Major water system improvements included well drilling in the southern part of the City. adding water main extensions and the two-inch water main replacement program. o Construction costs totaling $745,156 were incurred for other improvements. These projects included hangar renovation at the airport, heating/cooling system upgrade at the Common Pleas court house. traffic signal upgrades. parking lot improvements in the downtown area, and trail construction. 15 o Construction costs totaling $529,698 on sewer system projects were incurred this year. A capital improvement sales tax was originally approved in 1994 to complete a specific list of improvements to the sewer system. Over $33,350.000 in revenue bonds have been issued through the State Revolving Loan Program to complete these projects. All of the projects on the list are now complete. o Police and fire station improvements in the amount of $129,231 were made possible by the passage of a Fire Sales Tax. o Total expenditures to complete the remodeling of the aviation terminal building at the Airport amounted to $72.485. This was partially funded by grant revenue. o hi April 2008 voters approved a''/� cent sales tax to pay for storm water and park improvement projects. $247.760 and $1,904.347 were spent respectively during the current year on these projects. Additional information about the City's capital assets can be found in note D to the financial statements. CITY OF CAPE GIRARDEAU, MISSOURI City of Cape Girardeau's Outstanding Debt Year ended 2009 Governmental Business -type Activity Activities Total 2009 2008 2009 2008 2009 2008 Notes payable 1,317,125 1,264,375 457,875 485,625 1,775,000 1,750,000 Special obligation bonds 6,471,913 7,270,161 184,577 379,012 6,656,490 7,649,173 Revenue bonds 17,455,594 18,485,931 29,107,986 32,660,905 46,563,580 51,146,836 Certificates of participation 2,235,209 2,365,258 - - 2,235,209 2,365,258 General obligation bonds - - - - - Leasehold revenue bonds 19,722,056 108,000 19,722,056 108,000 47,201,897 29,493,725 29,750,438 33,525,542 76,952,335 63,019,267 Long-term debt. At the end of the fiscal year. the City of Cape Girardeau had total debt outstanding of $76,952,335. Bonded debt outstanding totaling $46.563.580 is secured by revenues of the sewer and water funds and capital improvement sales taxes. The repayment of the remaining debt is subject to annual appropriations. The City's total debt increased by $13,933.068 (22.1 %) during the year. During the year the City issued leasehold revenue bonds totaling $19,740,196 (net of discount) to fund various park and storm water improvements and entered into a $125,000 note payable to finance a portion of the land costs for a new downtown parking lot. Regularly scheduled principal payments and amortization of bond premiums / discounts resulted in outstanding long-term debt being reduced by $5.932.128. Revenues from a parks / storm water sales tax passed in April 2008 will be used to repay the leasehold revenue bonds issued this year. More information about the City's outstanding debt can be found in note E to the financial statements. 16 Economic Factors and the Next Year's Budget Commercial and residential development held up reasonably well during the current year. However, residential development is approximately 45% below fiscal year ending June 30. 2007 levels. Commercial and residential permits valued at $47.9 million and $12.4 million were issued this year. Commercial and residential permits valued at $28.8 million and $12.5 million were issued in the previous year. Only 33 single family residence building permits totaling $6,892,992 were issued during the current year compared to 50 totaling $9,437,324 in the previous year. Most of the decline in single family residence building permits during the past year was offset by a $2.030,000 (263.6%) increase in apartment building permits. Driving factors for the increase in Commercial permits were projects at the two City hospitals and the construction of a senior citizen's apartment complex. During the current year Thorngate Ltd., a high-end men's clothing manufacturer, ceased operations at its Cape Girardeau plant. As a result 310 jobs were lost. However, the Cape Girardeau County preliminary unadjusted unemployment rate was only 6.5% in October 2009.This compares favorably with the preliminary statewide and national unadjusted unemployment rates which were of 8.9% and 9.6% respectively. The unemployment rates were 4.7% and CITY OF CAPE GIRARDEAU, MISSOURI 6.3% for the county and state respectively for the previous October Taxable sales subject to the City's general sales tax declined 1.56% during the current year. Since the City is heavily dependent on sales tax revenue for support of its general fund services, slowed growth of local retail sales can have a significant impact on the City's ability to fund services in the future. The state Hancock Amendment requires the City obtain simple majority voter approval to increase any permit or license fee that is not based on actual costs to the user and strictly limits the City's ability to increase its real estate and personal property tax levies to support its general services such as police and fire protection. The City Charter requires voter approval to increase sewer, water, and solid waste fees by more than 5% in any year. All other user fees can be adjusted to cover actual costs_ Stanrtant economy. Sales tax is a significant revenue source of the City and is a barometer of the local economy. In the current year sales tax revenue from the general sales tax decreased 1.6% while inflation grew at 1.9%. In the previous year sales tax revenue from the general sales tax increased .6% while inflation grew at 3.5 %. General sales tax revenue growth was flat during the first five months of the current 2010 fiscal year. The City's restaurant and hotel/motel gross receipt taxes increased 3.2% and 2.0%, respectively, this year. In the previous year they increased 5.4% and 3.9%, respectively. Regional retail center. Through most of the 1990's Cape Girardeau continued to be a regional retail center for much of Southeast Missouri and Southern Illinois. During the latter part of the 1990's Cape Girardeau began to lose its share of the retail market to other cities in the region as these cities added additional retail outlets in their communities. The previous table, which includes the City of Cape Girardeau and significant retail centers within a 50 mile radius. shows the percentage of estimated sales made by each City to the total estimated sales of the five cities. Since the fiscal year ending June 30, 2006 the City's share of the local market has increased slightly. Local Economic Development. Since 2004 the City has entered into 3 long-term development agreements to reimburse companies for the public improvements associated with 3 retail development projects from the additional sales tax generated from those projects. The agreements have resulted in the addition of one major new retailer, the relocation and expansion of another major retailer, and in the conversion of a former Sears's facility into a call center for National Asset Recover Services (MARS). Payment made by the City pursuant to these agreements totaled $211,279 during the current year. Payments totaling $641.830 have been made since the beginning of these agreements. During the year the City spent $61.433 is support of Cape Girardeau Area Magnet, as a result of their membership in that organization. This organization actively solicits business, industry and commerce for the greater Cape Gu-ardeau area which includes neighboring cities Jackson and Scott City and all of Cape Girardeau County. Budeet for fiscal vear ending June 30.2010 and financial condition. In April of 2008 the citizens passed a''/�%parks / storm water sales tax which became effective October 1, 2008. 25% of the new sales tax is being used for parks and storm water operating expenses. The adopted general fund budget for the fiscal year ending June 30, 2010, which includes the total impact of the new sales tax, was projected to produce a S336,436 surplus to help increase the City's unrestricted general fund balance and provide a cushion against a further economic slow down. The adopted general fund budget included no wage increases and included projected revenue based on conservative revenue assumptions. The approved general fund budget projected adequate revenue to cover its projected personnel and operating costs and S 136,917 in capital costs. The current budget's health costs appear to have stabilized as a result of a change to a more consumer based health coverage beginning January 1, 2008. Charges required to fund maximum estimated claims SALES TAX COMPARISON FY06 FY07 FY08 FY09 Cape Girardeau 40.6% 40.9% 41.20/ 41.1% Carbondale 29.0% 28.4% 28.6% 27.7% Jackson 9.9% 10.2% 9.9% 9.9% Perryville 7.0% 7.1% 7.1% 7.4% Sikeston 13.5% 13.4% 13.2% 13.9% 100.0% 100.0% 100.0% 100.0% The previous table, which includes the City of Cape Girardeau and significant retail centers within a 50 mile radius. shows the percentage of estimated sales made by each City to the total estimated sales of the five cities. Since the fiscal year ending June 30, 2006 the City's share of the local market has increased slightly. Local Economic Development. Since 2004 the City has entered into 3 long-term development agreements to reimburse companies for the public improvements associated with 3 retail development projects from the additional sales tax generated from those projects. The agreements have resulted in the addition of one major new retailer, the relocation and expansion of another major retailer, and in the conversion of a former Sears's facility into a call center for National Asset Recover Services (MARS). Payment made by the City pursuant to these agreements totaled $211,279 during the current year. Payments totaling $641.830 have been made since the beginning of these agreements. During the year the City spent $61.433 is support of Cape Girardeau Area Magnet, as a result of their membership in that organization. This organization actively solicits business, industry and commerce for the greater Cape Gu-ardeau area which includes neighboring cities Jackson and Scott City and all of Cape Girardeau County. Budeet for fiscal vear ending June 30.2010 and financial condition. In April of 2008 the citizens passed a''/�%parks / storm water sales tax which became effective October 1, 2008. 25% of the new sales tax is being used for parks and storm water operating expenses. The adopted general fund budget for the fiscal year ending June 30, 2010, which includes the total impact of the new sales tax, was projected to produce a S336,436 surplus to help increase the City's unrestricted general fund balance and provide a cushion against a further economic slow down. The adopted general fund budget included no wage increases and included projected revenue based on conservative revenue assumptions. The approved general fund budget projected adequate revenue to cover its projected personnel and operating costs and S 136,917 in capital costs. The current budget's health costs appear to have stabilized as a result of a change to a more consumer based health coverage beginning January 1, 2008. Charges required to fund maximum estimated claims CITY OF CAPE GIRARDEAU, MISSOURI only increased 6.6% January 1, 2009 and will only increase 7.1 % on January 1, 2010. The City's current financial position is good in that it has more than adequate fund balance to cover existing claims and potential emergencies. However, its financial condition or its ability to provide enough reoccurring revenues to meet its reoccurring needs is still less than desirable. Funding of equipment for the general and airport funds, excluding police, fire, and various park divisions is still inadequate. Requests for Information This financial report is designed to provide a general overview of the City of Cape Girardeau's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director. City of Cape Girardeau, PO Box 617, Cape Girardeau, MO 63702-0617. IN BASIC FINANCIAL STATEMENTS City of Cape Girardeau Statement of Net Assets For the Year Ended June 30, 2009 Primary Government Governmental Business -type Activities Activities Total ASSETS Cash and cash equivalents $ 6,744,282.77 $ 428,345.73 $ 7,172,628.50 Investments 37,415,437.30 5,546,054.43 42,961,491.73 Taxes receivable 3,776,401.68 3,776,401.68 Utility charges receivable - 1,605,861.52 1,605,861.52 Special assessments receivable 915,926.94 127,165.00 1,043,091.94 Interest receivable 212,168.48 1,618.55 213,787.03 Other receivables 173,082.32 2,528.31 175,610.63 Notes receivable 276,014.66 - 276,014.66 Motor fuel receivable 111,264.47 - 111,264.47 Grants receivable 610,150.39 33,195.83 643,346.22 Internal balances 894,775.71 (894,775.71) - Inventory 195,233.55 488,454.15 683,687.70 Prepaid items 654,924.36 335,381.19 990,305.55 Restricted cash and cash equivalents - 3,670,579.19 3,670,579.19 Restricted investments - 3,211,892.05 3,211,892.05 Land 5,370,111.05 161,989.55 5,532,100.60 Buildings 12,253,179.30 2,204,432.06 14,457,611.36 Other improvements 9,890,277.19 85,769,062.95 95,659,340.14 Equipment 5,902,959.61 3,058,396.31 8,961,355.92 Infrastructure 107,513,635.82 - 107,513,635.82 Construction in process 8,175,806.58 1,270,448.32 9,446,254.90 Total assets $ 201,085,632.18 $ 107,020,629.43 $ 308,106,261.61 IJ 0 City of Cape Girardeau Statement of Net Assets For the Year Ended June 30, 2009 Primary Government Governmental Business -type Activities Activities Total LIABILITIES Accounts payable $ 2,701,605.72 $ 765,010.68 $ 3,466,616.40 Salaries and benefits payable 1,345,692.18 263,425.09 1,609,117.27 Interest payable 690,585.32 511,221.13 1,201,805.45 Other liabilities 197,596.31 520,831.32 718,427.63 Estimated claims 628,500.00 - 628,500.00 Due to other governments 12,491.98 9,385.44 21,877.42 Unearned revenues 50,099.22 - 50,099.22 Deferred revenues - 4,077.79 4,077.79 Estimated landfill post closure costs - 52,500.00 52,500.00 Current portion long-term debt: - Notes payable 43,395.00 13,875.00 57,270.00 Revenue bonds payable 1,080,000.00 3,695,000.00 4,775,000.00 Certificates of participation payable 135,000.00 - 135,000.00 Leasehold revenue bonds payable 1,790,000.00 - 1,790,000.00 Special obligation bonds payable 800,000.00 184,576.99 984,576.99 Long-term debt net of current portion: Notes payable 1,273,730.00 444,000.00 1,717,730.00 Revenue bonds payable 16,375,593.64 25,412,985.84 41,788,579.48 Certificates of participation payable 2,100,209.22 2,100,209.22 Leasehold revenue bonds payable 17,932,056.13 - 17,932,056.13 Special obligation bonds payable 5,671,912.85 - 5,671,912.85 Net OPEB Obligaton 816,220.10 113,191.30 929,411.40 Total liabilities 53,644,687.67 31,990,060.58 85,634,768.25 NET ASSETS Invested in capital assets, net of related debt 119,771,643.71 63,073,426.93 182,845,070.64 Restricted for debt service 246,218.27 1,096,666.67 1,342,884.94 Restricted for depreciation and replacement - 1,427,000.00 1,427,000.00 Restricted for emergency fund 4,107,607.00 1,774,685.00 5,882,292.00 Restricted for Mausoleum 104,882.80 - 104,882.80 Restricted for River Campus Project 150,920.90 - 150,920.90 Restricted for Local Access Channel 8,578.70 - 8,578.70 Restricted for Operation and Maintenance 4,498.09 - 4,498.09 Unrestricted 23,046,595.04 7,658,770.25 30,705,365.29 Total net assets $ 147,440,944.51 $ 75,030,548.85 $ 222,471,493.36 City of Cape Girardeau Statement of Activities For the Year Ended June 30, 2009 Net (Expense) Revenue and Program Revenues Changes In Net Assets Primary Government Capital Grants Charges for Operating Grants and Governmental Business -type Functions/Programs Expenses Services and Contributions Contributions Activities Activities Total Primary government: Governmental activities: Administrative $ 6,415,924.02 $ 929,489,45 $ 259,862.08 $ 333,016.67 $ (4,893,555.82) $ - $ (4,893,555.82) Capital Improvements 632,997.97 - - 241,034.80 (391,963.17) - (391,963.17) Development Services 2,010,202.14 1,367,517.74 473,121.41 - (169,562.99) - (169,562.99) Interest and other costs 1,388,445.21 - - - (1,388,445.21) - (1,388,445.21) Parks and Recreation 3,873,940.26 683,408.60 13,579,60 208,196.45 (2,968,755.61) - (2,968,755.61) Public Safety 12,512,215.88 917,250.40 517,737.44 11,557.43 (11,065,670.61) - (11,065,670.61) Public works 6,028,091.10 9,600.00 347,538.94 874,127.83 (4,796,624.33) - (4,798,624.33) Total governmental activities 32,861,816.58 3,907,466.19 1,811,839.47 1,667,933.18 (25,674,577.74) (25,674,577.74) N Business -type Activities: Golf Course 522,989.75 319,832.14 - - - (203,157.61) (203,157,61) Sewer 5,495,679.84 3,052,369.67 94,576.86 193,697.76 (2,155,035.55) (2,155,035.55) Softball Complex 507,153.83 142,610,08 8.82 14,729.36 - (349,805.57) (349,805.57) Solid Waste 3,146,307.73 3,353,499.54 25,994.57 - - 233,186.38 233,186.38 Water 5,759,009.16 5,822,350.36 28,725.73 310,913.56 402,980.59 402,980.59 Total business -type activities 15,431,140.31 12,690,661.79 149,305.98 519,340.78 - (2,071,631.76) (2,071,831.76) Total primary government $ 48,292,9®6.89 $ 16,59® $ 1,761,145.45 $ 2,187,273.96 (25,674,577.74) (2,071,831.76) (27,746,409.50) Functions/Programs Primary government: Governmental activities: Iv t1i City of Cape Girardeau Statement of Activities For the Year Ended June 30, 2009 Net (Expense) Revenue and Program Revenues Changes in Net Assets Primary Government Capital Grants Charges for Operating Grants and Governmental Business -type Expenses Services and Contributions Contributions Activities Activities Total General revenues: Property taxes Sales taxes Franchise taxes Motor fuel taxes Convention and tourism taxes Merchant licenses Liquor licenses Other taxes Unrestricted grants and contributions Unrestricted investment earnings Gain on sale of assets Other non-operating revenue Transfers Total general revenues Change in net assets Net assets - beginning Prior period adjustment Net assets - ending 1,944,679.90 1,944,679.90 21,981,846.59 - 21,981,846.59 3,563,962.45 - 3,563,962.45 1,318,120.90 - 1,318,120.90 1,718,951.45 - 1,718,951.45 1,163,490.65 - 1,163,490.65 64,787.50 - 64,787.50 161,100.75 - 161,100.75 60,481.69 - 60,481.69 1,568,312.95 674,570,25 2,242,883.20 3,387.50 68,587.37 71,974.87 34,557.53 174.21 34,731.74 (3,830,833.02) 3,830,833.02 29,752,846.84 4,574,164.85 34,327,011.69 4,078,269.10 2,502,333.09 6,580,602.19 143,378,442.56 72,528,215,76 215,906,656.32 (15,767.15) (15,767.15) $ 147,440,944.51 $ 75,030,548.85 $ 222,471.493.36 FUND FINANCIAL STATEMENTS ASSETS Current assets: Cash and cash equivalents Investments Receivables - Real estate taxes, net Personal property taxes, net Sales tax Franchise taxes Hotel & motel tax Restaurant tax Special assessments t.> Other w Interest Motor fuel tax Vehicle license fees Motor vehicle sales tax Grants Otherfunds Inventory Prepaid items Total Current assets: Noncurrent assets: Advances to other funds Total Noncurrent assets: Total assets City of Cape Girardeau Balance Sheet Governmental Funds For the Year Ended June 30, 2009 Park and General Airport Recreation Trans Sales Tax Park Proj from Trust Fund III Parks Sales Tax Other Governmental Funds Total Governmental Funds $ 132,923.49 $ 4,665.14 $ 15,571.39 $ 446,666.77 $ 2,635,352.23 $ 3,222,962.11 S 6,458,141.13 1,791,839.98 61,120.37 202,292.18 5,836,967.98 14,576,109.60 10,988,532.94 33,456,863.05 46,867.39 - - - - 14,343.72 61,211.11 11,760.00 - - - - 2,200.24 13,960.24 717,330.87 - - 344,149.45 - 887,665.56 1,949,145.88 1,601,163.55 - - - - 1,601,163.55 - - - - 56,824.84 56,824.84 - - - - 94,096.06 94,096.06 124,930.15 - - - - 790,996.79 915,926.94 26,765.09 81,868.95 48,367.84 - - 2,450.69 159,452.57 130,835.87 - - - 46,192.69 35,139.92 212,168.48 - - - - 84,298.89 84,298.89 - - - - 12,333.49 12,333.49 - - - - - 14,632.09 14,632.09 217,436.60 56,832.32 19.51 41,988.07 - 293,583.16 609,859.66 31,376.00 - - - - 31,376.00 127.28 52,941.23 - - 4,439.34 57,507.85 73,155.60 18,812.09 4,187.00 - 45,019.43 141,174.12 4,906,511.87 276,240.10 270,437.92 6,669,772.27 17,257,654.52 16,549,519.27 45,930,135.95 1,038,195.67 - - - - - 1,038,195.67 1,038,195.67 - - - - - 1,038,195.67 $ 5,944,707.54 $ 276,240.10 $ 270,437.92 $ 6,669,772.27 $ 17,257,654.52 $ 16,549,519.27 $ 46,968,331.62 LIABILITIES AND FUND BALANCES Current liabilities: Accounts payable Salaries and benefits payable Other liabilities Due to other governments Payable to other funds Unearned revenues Deferred revenues Total Current liabilities: .j, Non current liabilities: Advances from other funds Total Non current liabilities: Total liabilities Fund balances: Reserved Unreserved Total fund balances Total liabilities and fund balances City of Cape Girardeau Balance Sheet Governmental Funds For the Year Ended June 30, 2009 Other Total Park and Trans Sales Tax Park Proj from Governmental Governmental General Airport Recreation Trust Fund III Parks Sales Tax Funds Funds $ 285,528.90 $ 118,303.52 $ 69,780.26 $ 289,634.99 $ 500,723.84 $ 975,682.82 S 2,239,654.33 361,767.39 19,235.81 78,073.39 - - 3,794.33 462,870.92 118,196.35 47,317.82 30,698.69 - - 1,295.83 197,508.69 - - - - - 2,206.64 2,206.64 - - - - - 31,376.00 31,376.00 15,000.00 1,540.00 33,559.22 - 50,099.22 200,637.79 - - - - 919,198.93 1,119,836.72 981,130.43 186,397.15 212,111.56 289,634.99 500,723.84 1,933,554.55 4,103,552.52 500,723.84 1,933,554.55 4,103,552.52 212,111.56 289,634.99 186,397.15 981,130.43 4,440,876.76 25,809.09 25,732.22 5,365,778.86 3,022,451.83 4,287,569.71 17,168,218.47 522,700.35 64,033.86 32,594.14 1,014,358.42 13,734,478.85 10,328,395.01 25,696,560.63 4,963,577.11 89,842.95 58,326.36 6,380,137.28 16,756,930.68 14,615,964.72 42,864,779.10 $ 5,944,707.54 $ 276,240.10 $ 270,437.92 $ 6,669,772.27 $ 17,257,654.52 $ 16,549,519.27 $ 46,968,331.62 tv U1 City of Cape Girardeau Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Assets For the Year Ended June 30, 2009 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds, net of accumulated depreciation of $55,533,201.88. Internal service funds are used by management to charge the costs of management information systems, fleet management, employee fringe benefits, workmen's compensation, and equipment replacement to individual funds. Other long-term assets are not available to pay for current -period expenditures and, therefore are deferred in the funds. Other accrued expenses which are not payable from current -period revenues are included in governmental activities in the statement of net assets. Net assets of governmental activities $ 42,864,779.10 (47,245,393.83) 147,522,708.20 4,703,313.74 1,119,836.72 (1,524,299.42) $ 147,440,944.51 Iv 01 City of Cape Girardeau Statement of Revenues, Expenditures, and Changes In Fund Balances Governmental Funds For the Year Ended June 30, 2009 Other Total Parc and Trans Sales Tax Park Projects from Governments] Governmental General Airport Recreation Trust Fund III Parks Sales Tax Funds Funds REVENUES Taxes $ 13,963,653.14 $ $ $ 4,105,410.01 $ $ 11,271,845.31 S 29,400,914.46 Licenses d permits 1,400,412.28 4,847.00 1,405,059.28 Intergovernmental 1,106,342.67 475,556.82 28.96 905.55 2,238,112.42 3,820,946,42 Charges for services 328,233.97 253,799.10 607,771.19 - 1,189,804.32 Internal charges 1,094,301.23 - 1,094,301.23 Fines and forfeits 708,203.03 780,203.83 Miscellaneous 286,890.53 172,746.18 15,594.85 - 93,016.92 568,248.48 Investment revenue 142,778.98 1,884.34 6,577.94 360,756.33 52,368.26 781,556.34 1,345,922.19 Special assessments 10,979.50 - 219,704.27 230,683.77 Total revenues 19,121,790.13 903,988.50 029,972.94 4,527,077,89 52,368.20 14,608,082.26 39,844,083.98 EXPENDITURES Current: Administrative 3,174,061.88 1,198,938.41 - 1,823,107.87 6,194,108.18 Development Services 1,339,536.31 63,630.16 - 568,891.36 1,972,057.83 Parks and Recreation 1,580,430.47 1,618,260.48 - 21,763.36 3,220,454.33 Public Safety 11,059,433.70 - 402,835.97 11,462,269.67 Public Works 2,045,726.02 1,903.00 2,047,689.02 Debt Service: Administrative charges 470.25 - - - 00,729.21 61,199.46 Interest 96.011,88 0,904.07 987.27 5.525.04 1,036,101.01 1.145,590.07 Issuance cost - - - 206,728.14 9,344.87 216,073,01 Principal 103,492.65 38,315.30 - - 1,930,100.00 2,077,908.15 Capital ou0ay 209,670.50 102,754.07 13,213,60 5,458,300.34 1,904,281.63 7,818,290.44 15,586,511.58 Total expenditures 19,608,833.88 1,404,972.65 1,632,461.55 5,521,930.50 2,138,298.19 13,857,364.53 43,963,861.28 Excess (deficiency) of revenues over expenditures (487,037.73) (500,986.15) (1,002,488.81) (994,852.61) (2,085,919.93) 951,517.73 (4,119,777.30) OTHER FINANCING SOURCES (USES) Transfers out (4,092,199.68) (254,235.40) (835,831.61) (10,060,015.91) (15,242,882.60) Transfers In 4,330,912.15 694,270.82 1.017,834.36 325,000.00 792,530.35 5,178,479,11 12,339,032,79 Bond proceeds - 18,886,458.87 976,580.18 19,863,039.05 Assetdisposi0on 3,387.50 - - - - - 3,387.50 Other nonoperation revenue 28,546.99 0,008.54 34,557.53 Total other financing sources and uses 270,648.96 448,049.90 1.017,634.30 325,000.00 16,843,157.61 (3.905,556.62) 16,997,134.27 Net Change In fund balances (216,388.77) (54,930.19) 15,345.75 (669,852.61) 16.757,227.68 (2,954,036.89) 12,877,356.97 Fundbalances- beginning 5,189,680.41 150,831.75 42,980.61 7,049,989.89 (297.00) 17,570,003.62 30,003,169.28 Prior period adjustment (9,714.53) (6,052.61) (0.01) (15,767.15) Fund balances - ending S 4,963,577.11 $ 89,842.95 $ 58,326.36 $ 6,380,137.28 $ 16,758,930.68 $ 14,615,964.72 $ 42,864,779.10 City of Cape Girardeau Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2009 Net change In fund balances -total governmental funds $ 12,877,350.97 Amounts reported for governmental activiVes In the statement of activities are different because: Reductions of debt are reported in the fund financial (17,563,550.20) statements as an expense but are not Included in the government wide statement of activities. Governmental fund report capital oulays as expenditures. 9,400,251.36 However, In the statement of activities, the cost of those assets are allocated over their estimated useful lives and reported as depreciation expense. This Is the amount by which depredation expense exceeded capital outlays in the current period. Internal service funds are used by management to charge 464,208.32 the costs of management information systems, fleet management, employee fringe benefits, workmen's compensation, and equipment replacement to Individual funds. N Other long-term assets are not available to pay for current- (219,997.46) J period expenditures and, therefore are defeffed In the funds. Some expenses reported In the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (939,999.67) Change in net assets of governmental activities $ 4,078,269.10 ASSETS Current assets: Cash and cash equivalents Investments Utilities charges, net Special assessments Other Notes receivable Interest Grants Inventory Prepaid items Total Currents assets: Iv 00 Noncurrent assets: Rest Cash and Cash Equivalents Rest Investments Land Buildings Equipment Other improvements Construction in progress Accumulated depreciation Total Noncurrent assets: Total assets Sewer City of Cape Girardeau Statement of Net Assets Proprietary Funds For the Year Ended June 30, 2009 Business -type Activities - Enterprise Funds Total Gov. Activities Proprietary Internal Service Water Solid Waste Golf Course Softball Complex Funds Funds $ 126,262.41 $ 188,791.93 $ 103,974.90 $ 3,618.45 1,625,811.09 2,449,021.48 1,350,089.39 47,363.76 434,350.98 800,536.44 370,974.10 - 95,760.39 31,404.61 - 1,221.27 1,208.49 48.55 289.32 1,329.23 - - 23,951.36 5,507.13 3,109.84 606.47 - 473,205.77 - 4,024.82 131,710.29 200,757.32 2,705.24 208.34 2,439,357.11 4,151,762.40 1,830,902,02 55,821.84 3,489,589.00 180,815.30 174.89 133,497.43 3,073,810.38 4,584.24 - 49,750.00 - 112,239.55 - 8,078,346.00 174,311.63 1,051,146.72 140,253.00 3,218,572.28 1,786,663.50 1,890,639.64 243,318.43 69,488,656.43 46,296,781.89 333,132.92 551,268.84 86,245.31 1,184,203.01 - - (28,520,293.59) (10,644,920.80) (2,402,101.17) (740,385.46) 56,024,362.86 42,051,664.91 989,816.79 194,454.81 $ 58,463,719.97 $ 46,203,427.31 $ 2,820,718.81 $ 250,276.65 $ 5,698.04 73,768.71 50.00 21.03 11,223.56 90,761.34 48,400.97 131,955.22 26,592.57 (120,447.70) 86,501.06 $ 177,262.40 $ 428,345.73 5,546,054.43 1,605,861.52 127,165.00 2,528.31 1,618.55 33,195.83 488,454.15 335,381.19 8,568,604.71 3,670,579.19 3,211,892.05 161,989.55 9,492,458.32 7,271,149.07 116,696,432.65 1,270,448.32 (42,428,148.72) 99,346,800.43 $ 107,915,405.14 $ 286,141.64 3,958,574.25 13,629.75 276,014.66 290.73 137,725.70 98,863.02 4,771,239.75 37,500.00 46,224.45 4,009,128.53 155,653.19 (2,665,244.82) 1,583,261.35 $ 6,354,501.10 LIABILITIES Current liabilities: Accounts payable Salaries and benefits payable Interest payable Other liabilities Estimated claims payable Due to other governments Deferred revenues Payable to other funds Advances from other funds Notes Payable Revenue bonds payable N Special oblig bonds payable Total Current liabilities: Noncurrent liabilities: Net OPEB Obligation Advances from other funds Notes Payable Revenue bonds payable Special oblig bonds payable Est landfill post closure cost Total Non current liabilities: Total liabilities Sewer $ 194,095.23 103,614.77 450,522.85 217,980.71 2,332.29 4,077.79 6,750.00 2,805,000.00 89,009.21 3,873,382.85 54,071.93 216,000.00 21,778,874.80 22,048,946.73 25,922,329.58 $ 421,130.38 9,154.60 60,332.06 199,438.71 7,053.15 890,000.00 56,705.49 1,643,814.39 7,996.39 3,634,111.04 3,642,107.43 5,285,921.82 City of Cape Girardeau Statement of Net Assets Proprietary Funds For the Year Ended June 30, 2009 Business -type Activities - Enterprise Funds $ 110,334.57 $ 6,777.49 67,810.91 35,857.17 366.22 - 96,306.60 7,105.30 7,125.00 - 38,862.29 - 320,805.59 49,739.96 38,972.13 9,222.51 620,000.00 243,257.52 228,000.00 - 52,500.00 - 939,472.13 252,480.03 1,260,277.72 302,219.99 NET ASSETS Invested in capital assets, net of related 27,663,458.44 34,413,744.06 715,268.56 194,454.81 Restricted for debt service - 1,096,666.67 - - Restricted for depr and replacement 127,000.00 1,300,000.00 - Restricted for emergency fund 451,224.00 855,118.00 468,343.00 - Unrestricted 4,299,707.95 3,251,976.76 376,829.53 (246,398.15) Total net assets $ 321541,390.39 $ 40,917,505.49 $ 1,560,441.09 $ (51,943,34) Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds' net assets of business -type activities Softball Complex — $ 32,673.01 46,987.64 79,660.65 2,928.34 174,938.15 177,866.49 257,527.14 86,501.06 (166,765.80) $ (80,264.74) Total Gov. Activities Proprietary Internal Service Funds Funds $ 765,010.68 263,425.09 511,221.13 520,831.32 9,385.44 4,077.79 13,875.00 3,695,000.00 184,576.99 5,967,403.44 113,191.30 1,038,195.67 444,000.00 25,412,985.84 52,500.00 27,060,872.81 33,028,276.25 63,073,426.93 1,096,666.67 1,427,000.00 1,774,685.00 7,515,350.29 74,887,128.89 143,419.96 $ 75,030,548.85 $ 461,951.39 48,621.74 485.42 87.62 628,500.00 4,875.00 45,000.00 1,189, 521.17 40,680.84 156,000.00 121,565.39 318,246.23 1,507,767.40 1,258,954.60 3,587,779.10 $ 4,846,733.70 City of Cape Girardeau Statement of Revenues, Expenses, and Changes In Fund Net Assets Proprietary Funds For the Year Ended June 30, 2009 Total Gov. Activities Proprietary Internal Service Sewer Water Solid Waste Golf Course Softball Complex Funds Funds Operating revenues: Residential charges $ 1,800,536.72 $ 3,308,780.50 $ 2,098,922.17 $ $ $ 7,208,239.39 $ Commercial charges 1,129,678.98 2,327,425.03 30,154.39 - - 3,487,258.40 Transfer station charges - 1,104,171.71 - 1,104,171.71 Other fees and charges 42,889.17 169,260.45 86,542.39 298,472.01 Concession revenues - - - 17,392.42 45,712.58 63,105.00 Equipment sales - - 7,583,75 6,597.50 14,181.25 - Intemal charges - - - - - - 4,990,790.38 Usage fees - - - 295,596.40 82,620.31 378,216.71 - Miscellaneous 11,344.80 10,884.38 33,708.88 71679.69 69,617.75 1,893,06 Total operating revenues 2,984,229.67 5,822,350.36 3,353,499.54 320,572.57 142,610.08 12,023,262.22 4,992,683.44 Operating expenses: Personnel services 1,633,160.22 137,677.77 1,271,648.89 354,107.48 372,070.48 3,768,664.84 778,358.53 Materials & supplies 422,251.56 1,044,938.83 121,298.01 49,982.32 74,982.54 1,713,451.26 311,971.94 Contractual services 241,427.45 2,531,430.34 1,256,040.27 16,895.77 13,432.08 4,059,225.91 3,165,811.55 General operating expenses 50,248.88 174,950.00 41,234.68 8,601.65 1,122.26 276,157.47 33,904.41 Special programs 178,735.59 134,081.70 92,369.75 4,938.59 5,146.52 415,272.15 Internal service expenses 180,879.10 108,498,33 196,109.66 37,893.85 24,210.46 545,591.40 2,681.00 V� O Depreciation 2,093,634.95 1369,651.99 162,007.58 44,715.79 11,598.37 3,681,568.68 271,187.99 Total operating expenses 4,000,337.75 5,499,128.96 3,140,788.84 517,135.45 502,562.71 14,459,931.71 4,563,713.42 Operating Income (loss) (1,816,108.08) 323,221.40 212,732.70 (196,562.88) (359,952.63) (1,838,889.49) 428,970.02 Nonoperating revenues (expenses) Intergovernmental 122,154.98 31,855.68 25,994.57 - 8.82 180,014.05 92.85 Investment revenue 268,624.31 327,480.58 73,998.52 3,115.27 1,351.57 674,570.25 222,390.76 Gain from sale of asset 18,640.37 - - 49,210.00 737.00 68,587.37 - Other non-operating revenue 174.21 - - 174.21 8,817.72 Interest and other charges (702,246.70) (249,309.22) (36,121.63) (13,556.27) (9,500.00) (1,010,733.82) (10,341.82) Issuance cost amortization (29,523.02) (22,278.08) 82.13 (51,718.95) (880.45) Total nonoperating revenues (expenses) 322,175.85) 87,748.98 63,953.59 38,769.00 (7,402.61) (139,106.89) 218,299.06 Income (loss) before contdbullons and transfers (2,138,283.93) 410,970.38 276,686.29 (157,793.88) (367,355.24) (1,975,776.38) 647,269.08 Contributed capital - conned fee 08,140.00 - - - 68,140.00 - Contributed capital - developers 166,119.64 307,783.71 - - - 473,903.35 Contributed capital - donations - - - 14,729.30 14,729.36 Contributed capital - government - 834,428.19 - 834,426.19 - Transfers In 2,382,840.35 128,000.00 - 128,310.60 373,160.88 3,012,111.83 7,705.00 Transfers out (5,000.00) (500.00) (10,205.00) (15,705.00) (100,282.02) Change in net assets 473,816.06 1,060,680.28 266,481.29 (29,483.28) 20,535.00 2,411,629,35 554,712.06 Total net assets — beginning 32,067,774.33 39,236,825.21 1,293,959.80 (22,460.06) (100,799.74) 72,475,299.54 4,292,021.64 Total net assets — ending $ 32,541,390.39 $ 406917,505.49 $ 1,560,441.09 S 16943.341( 80,264.741 $ 74,887,128.89 $ 4,846,733.70 Adjustments to reflect the consolidation of Internal service fund activities related to enterprise funds. 90,503.74 Change In net assets of business -type activities. $ 2,502,333.09 City of Cape Girardeau Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2009 Business -type Activities - Enterprise Funds Softball Sewer Water Solid Waste Golf Course Complex CASH FLOWS FROM OPERATING ACTIVITIES $ 3,243,207.51 Receipts from customers $ 2,949,900.03 Receipts from interfund services - Other receipts 23,910.59 Payments to suppliers (876,916.76) Payments for salaries and benefits (1,585,907.03) Payments for interfund services used (182.416.76) Payments made in lieu of franchise taxes - Remittance of taxes collected from customers (15,488.91) Net cash provided (used) by operating activities 312,796.36 w (174,625.65) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 172,379.35 Transfers to other funds (5,000.00) Advance repayment to other funds (3,649,061.17) Interest paid to other funds - Subsidy from federal grant 121,581.26 Subsidy from local grant - Nel cash (used) by noncapital financing 209,960.01 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions 131,125.47 Principal received on promissory note Interest received on promissory note - Proceeds from sales of capital assets 81,221.21 Purchase of capital assets (382,998.47) Acquisition and construction of capital assets (665,625.47) Principal paid on capital debt (2,293,733.98) Interest paid on capital debt (1,214,976.12) Transfers out for capital acquisitions - Transfers in for payment of capital related debt 2,210,201.00 Net cash (used) by capital and related financing 7,705.00 activities (2,134,728.38) Government Total Activities Proprietary Internal Service Funds Funds $ 6,949,597,11 $ 3,243,207.51 $ 363,160.02 $ 201,523.34 $ 12,708,126.01 $ 116,282,90 30,154.30 - 30,154.39 4,073,139,00 23,916.59 1,093.00 (3,815,903.27) (1,484,505.09) (132,439.37) (174,625.65) (6,484,530.14) (3,042,503.04) (127,729.55) (1,233,169.74) (340,468.40) (361,787.65) (3,649,061.17) (736,047.25) (66,141.33) (196,109.86) (39,509.65) (24,210.46) (508,388.06) (3,490.00) (142,947.81) - - (142,947.81) (234,274.77) - - (249,781.68) 1,502,510.38 359,557.41 (149,255.00) (350,100.42) 1,727,508.13 1,207,275,05 128,000.00 - 128,310.60 309,459.54 730,149.49 7,705.00 (500.00) (10,205.00) 63,701.34 47,996.34 (14,999.02) - (24,192.72) (15,061.85) (39,254.57) - (29,586.05) (13,556.27) (9,500.00) (52,642.32) - 31,739.93 18,041.85 7.79 171,970.83 2,153.10 - 17,142,35 - - 17,142.35 159,239.93 (4,000,05) 90,561.61 348,606.82 883,362.12 (5,140.92) 19,215,23 - - 150,340,70 14.02 - 4,026.77 - 13,403.30 49,210.00 737.00 131,166.21 150,769.95 (255,510.08) (45,610.39) - (684,124,94) (898,117.71) (257,989.11) - - - (923,614.58) (919,820.72) (55,425.30) - (3,208,980,00) (64,750.00) (215,594.45) (0,684.87) - (1,437,255.44) (10,687.07) - - (05,203.00) - 2,210,201.00 - (1,629,705.13) (107,720.56) 49,210.00 737.00 (3,822,205.05) (090,003.74) City of Cape Girardeau Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2009 Business -type Activities - Enterprise Funds Government Total Activities Softball Proprietary Internal Service Sewer Water Solid Waste Golf Course Complex Funds Funds CASH FLOWS FROM INVESTING ACTIVITIES Interest received 247,673.01 271,805.11 59,754.15 2,551.47 1,090.82 582,874.56 172,535.88 Net change in pooled investments (21,237,71) (240,180.97) (260,044.66) 7,707.08 6,711.55 (507,044.71) (398,697.19) Proceeds from sales and maturities of Investments 202,000.00 730,000.00 932,000.00 350,000.00 Purchase of investments - (720,715.00) - (720,715.00) (323,239.00) Net cash provided by investing activities 428,435.30 40,909.14 (200,290.51) 10,256.55 7,802.37 287,114.65 (199,600.31) Net Increase (decrease) in cash and cash equivalents (1,104,534.09) 132,954.32 47,539.49 774.56 (954.23) (924,219.95) 112,530.68 Balances - beginning of year 4,720,385.50 238,652.91 56,610.30 2,843.89 6,652.27 5,023,144.87 173,610.96 Balances - end of the year $ 3,615,851.41 $ 369,607.23 $ 104,149.79 $ 3,619.45 $ 5,698.04 $ 4,098,924.92 $ 286,141.84 UJ Reconciliation of operating Income (lose) to net cash provided (used) by operating activities: Operating income (loss) $ (1,810,108.08) $ 323,221.40 $ 212,732.70 $ (190,582.88) $ (359,952.63) $ (1,636,609,49) $ 428,970.02 Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depredation expense 2,093,834.95 1,369,551.99 162,087.58 44,715.78 11,598.37 3,681,568.58 271,187.99 Changes in assets and liabilities: Accounts payable - supplier (9,734.64) (7,026,75) (2,079.28) (10,140,96) (18,571.45) (48,153.09) 488,093.09 Accounts payable - other 31,563.20 6,474.16 4,623.52 (818,50) 42,042.38 - Salaries & benefits payable 47,252.39 9,948.22 38,479,15 13,116.08 10,282.63 119,078.67 40,309.28 Customer receivables (33,373.76) (82,472.80) (55,615,57) 30,50 (50.00) (171,481.69) (1,367.60) Other operating receivables - - - (6,454.41) Prepaid expenses (437.70) 2,502,82 (050.60) 3,67 1,278.10 (65,470.55) Inventory - (59,140.59) 400.70 (1,407.54) (60,155.43) 52,015.13 Net cash provided by operating activities $ 312,796.38 $ 1,562,510.38 $ 359,557.41 $ (149,255.60) $ (358,100.42) $ 1,727,508.13 $ 1,207,275.65 w w City of Cape Girardeau Statement of Net Assets Fiduciary Funds For the Year Ended June 30, 2009 Agency Funds ASSETS Cash and cash equivalents $ 88,056.80 3,487,800.37 Investments 45,079.03 Real estate taxes 12,561.79 Personal property taxes 40.94 Other Total assets $ 3,633,540.93 LIABILITIES Accounts payable $ 91,157.05 Salaries and benefits payable '14 Other liabilities 3,52222,,429429.74 Total Liabilities $ 3,633,540.93 City of Cape Girardeau. Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Cape Girardeau, Missouri (the City) operates under a charter, which went into effect April 12, 1982. The City operates under a Council -Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, water, sanitation, health and social services, culture -recreation, public improvement, planning and zoning, and general administrative services. The financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP), as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. 1. Reporting Entity In evaluating how to define the City, for financial reporting purposes, management has considered all potential component units. Generally, component units are legally separate organizations for which the elected officials of the City are financially accountable. The Cape Girardeau (Missouri) Public Facilities Authority (CGPFA) is a blended component unit of the City. For the year ended June 30, 2009, the CGPFA had no assets, liabilities, revenues, or expenses. Although not a component unit of the City, the City handles the funds of and provides accounting and other services for several entities. Since these funds are held by the City, these entities are shown as Agency Funds in the financial statements. 2. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. The effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business - type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds. proprietary funds, and fiduciary funds.. even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 34 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 3. Measurement Focus. Basis of Accountine. and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis ofaccounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. With the economic resources measurement focus, all assets and liabilities associated with operations are reflected in the statement of net assets. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 30 days of the end of the current fiscal period. Expenditures Generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Those revenues susceptible to accrual are property taxes, franchise taxes, special assessments, licenses, interest revenue, and charges for services. Sales taxes collected and held by the state at year-end on behalf of the City, also are recognized as revenue. Fines and permit revenues are not susceptible to accrual because, generally, they are not measurable until received in cash. With the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The City reports the following major governmental funds: The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The airport find accounts for the resources used in the operation and maintenance of municipal airport facilities. The parks and recreation fund accounts for the resources used in the operation of park and recreational activities. The transportation sales tax trust fund III accounts for the receipt and expenditure of a capital improvement sales tax that was approved by voters for street construction and improvements. The park improvement projects from parks sales tax fund accounts for the expenditure of a capital improvement sales tax that was approved by voters for park construction and improvements. 35 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued The City reports the following major proprietary funds: The sewer fund accounts for the operation of the City's sewage treatment plant, sewage pumping stations, and collection systems. The water fund accounts for the operation of the City's water treatment plants and distribution systems. The solid waste fund accounts for the operation of the City's residential solid waste and recycling programs. The golf fund accounts for the operation of the municipal golf course. The softball complex fund accounts for the operation of the City's softball complex, and maintenance of the City's soccer, baseball, and softball fields. Additionally, the City reports the following fund types: Internal service funds account for management information systems, fleet management, employee benefits, workers' compensation, and equipment leasing provided to other departments or agencies of the City, on a cost reimbursement basis. Agency funds account for the operations of the library, arena improvement committee, and parks development foundation. Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private -sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private -sector guidance. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and other charges between the City's enterprise function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the variou' functions concerned. It is the City's policy to first use restricted net assets prior to the use of unrestricted net assets when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. 36 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30. 2009 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued Amounts reported asprogram revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the City's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meet- ing this definition are reported as nonoperating revenues and expenses. 4. Capital Assets All capital assets with an original cost exceeding $5,000 are recorded at historical cost or estimated historical cost if actual historical cost is not available. Additions are recorded at cost or, if contributed property, at their estimated fair value at time of contribution. Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. The sale or disposal of capital assets is recorded by removing cost and accumulated depreciation and charging the resulting gain or loss to income. Depreciation of all exhaustible capital assets is charged as an expense against operations in proprietary funds and a program cost of governmental activities in the statement of activities. Assets are reported net of depreciation on proprietary fund and government -wide statement of net assets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 25-50 years Improvements 10-40 years Equipment 3-10 years When applicable, interest costs are capitalized on self -constructed capital assets. 5. Encumbrances Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized in all funds. Encumbrances outstanding at the end of the year in the governmental fiends are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be carried forward and honored during the subsequent year. Encumbrances outstanding in the proprietary funds do not constitute expenses but will be honored in the subsequent year. No reservations of net assets are made for encumbrances outstanding at the end of the year on the proprietary fund and government -wide statement of net assets. 37 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 6. Inventories Inventories consist primarily of supplies, valued at cost. The cost of inventories is recorded as expenditures or expenses when consumed rather than when purchased. 7. Compensated Absences Vested or accumulated vacation pay for proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. Amounts of vested or accumulated vacation leave of governmental funds are reported in the Statement ofNet Assets. Employees may accumulate up to 30 days vacation, for which they are compensated upon termination or retirement. Employees are not compensated for accumulated sick leave upon termination, but are compensated one hour for each eight hours of unused sick leave upon retirement. 8. Bond Premiums, Discounts, and Issuance Costs In governmental fiend types, bond discounts and issuance costs are recognized in the current period. Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the tern of the bonds. Bond premiums and discounts are presented as either increases or reductions of the face amount of bonds payable whereas issuance costs are recorded as deferred charges. The accounting treatment of bond premiums, discounts, and issuance costs used for goverunental activities in the government -wide statements is the same as that used for proprietary funds. 9. Cash and Investments The City maintains an internal investment pool for the majority of its non -restricted cash and investments and a small portion of its restricted cash and investments. Investment revenue is allocated to each fund based on its average equity balance in the pool. Cash includes amounts in repurchase agreements and other short-term investments with a maturity date within three months of the date of purchase. Investments, with a maturity date of one year or more at the time of purchase, are recorded at fair value. All other cash and investments are recorded at cost or amortized cost. 10. Prepaid Items Payments made to vendors for services that will benefit periods beyond June 30, 2009 are recorded as prepaid items. 38 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 11. Restricted Assets Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for the repayment of such bonds, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. The "revenue bond construction" account is used to report those proceeds of revenue bond issuances that are restricted for use in construction. The "revenue bond current debt service" account is used to report resources set aside to make up potential future deficiencies in the revenue bond current debt service account. 12. Lona -Term Obligations Only that portion of long-term obligations expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in the appropriate proprietary fund. Long-term liabilities expected to be financed from governmental activities are accounted for in the government -wide statement of net assets. 13. Interfund Transactions Quasi -external transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi -external transactions and reimbursements, are reported as transfers. Only net transfers between governmental and business -type activities are reflected on the government -wide statement of activities. 14. Short -Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "interfund receivables/payables" on the governmental balance sheet and proprietary statement of net assets. Only net receivables between governmental and business -type activities are reflected as internal balances on the government -wide statement of net assets. 15. Advances to Other Funds Noncurrent portions of long-term interfund loan receivables and payables are reported as advances in the governmental balance sheet and proprietary statement of net assets. Fund balances are reserved on the governmental balance sheet for interfand loan receivables to indicate that they do not constitute expendable available financial resources and therefore are not available for appropriation. Only net long-term interfund loans between governmental and business -type activities are reflected as internal balances on the government -wide statement of net assets. Net assets are not reserved for interfund loan receivables on proprietary and government -wide statements of net assets. 39 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 16. Post -Employment Health Care Benefits In addition to the pension benefits described in Note G, it is the City's policy to provide postretirement health care benefits to employees who retire from the City with five or more years of service and who are eligible for LAGERS retirement (Note G). Currently. forty-five employees meet those eligibility requirements. The City provides health care coverage for them until age 65. The cost of retirees' health care benefits is recognized as an expenditure as premiums are paid. For the year ending June 30, 2009, those costs totaled $460,644. COBRA Benefits - Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the City provides health care benefits to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium is paid in full by the insured on or before the tenth (10th) day of the month for the actual month covered. This program is offered for a duration of 18 months after the termination date for employees and 36 months for surviving spouses. There is no associated cost to the City under this program. There were two surviving spouses participating in the health insurance program and one surviving spouse participating in the dental insurance program as of June 30, 2009. 17. Infrastructure The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the street system, water system, sewer system; parks and recreation lands and improvement system, storm water system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Infrastructure of the water and sewer systems were routinely capitalized in the water and sewer funds of the City and are reflected as other improvements in the business -type activities section on the statement of activities. During the year ended June 30, 2009 all infrastructures completed during the fiscal year, including projects started in a previous year, were recorded at their historical costs. 40 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE B - DEPOSITS AND INVESTMENTS The City maintains a cash and temporary cash investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the combined statement of assets, liabilities, and fund balances arising from cash transactions as "Cash and Cash Equivalents" under each fund's caption. The deposits and investments held at June 30, 2009, and reported at fair value, are as follows: Deposits: Demand Deposits $ 441,106 Interest Bearing Deposit Accounts 10,490,160 Total Deposits $ 10,931.266 Investments: Negotiable Instruments $ 44,068,065 Federal Home Loan Bank 3,249.467 Federal National Mortgage Association 2,015,985 US Treasury Note 327.667 Total Investments $ 49,661,184 Total Deposits and Investments S 60.592.450 Reconciliation to Statement of Net Assets: Cash and Cash Equivalents $ 7,172,628 Investments 42,961,492 Restricted Cash and Cash Equivalents 3,670,579 Restricted Investments 3,271,892 Fiduciary Cash and Cash Equivalents 88,059 Fiduciary Investments 3,487,800 Deposits and Investments, Statement of Net Assets $60.592.45Q As of June 30, 2009, the City had the following investments: Tnvestment Negotiable Instruments Federal Home Loan Bank Federal National Mortgage Assoc US Treasury Note Total Custodial Credit Risk: Maturities 07/06/2009 — 05/28/2014 07/10/2009 — 04/04/2013 08/15/2009 — 04/20/2012 11/15/2012 Fair Value $44,068,065 3,249,467 2,015,985 327,667 $49,661,184 Deposits in financial institutions, reported as components of cash, cash equivalents, and investments, hada bank balance of $60,592,245 at June 30, 2009, that was fully insured by depository insurance or secured with collateral held by the City's agents in its naive. All investments, evidenced by individual securities, are registered in the name of the City. 41 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE B - DEPOSITS AND INVESTMENTS - Continued Investment Interest Rate Risk The City's investment policy states that `Market price volatility shall be controlled by matching the City's investments with anticipated cash flow requirements. The City will not directly invest in securities maturing more than seven years." The maturities of investments held at June 30, 2009 are provided above. Investment Credit Risk The City has an investment policy that limits its investment choices as follows: a. Direct obligations of the U.S. Government, its agencies and instrumentalities to which the full faith and credit of the U.S. Government is pledged, or obligations to the payment of which the full faith and credit of the State is pledged; b. Certificates of deposit or savings accounts that are either insured or secured with acceptable collateral with in-state financial institutions, and fully insured certificates of deposit or savings accounts in out-of-state financial institutions; Repurchase agreements collateralized by securities listed in (a.) above, documented by a written agreement, fully collateralized by delivery to an independent third party custodian, and are marked -to -market; d. Money market mutual funds whose portfolio consists of the foregoing instruments: and, e. Other prudent investment instruments approved prior to purchase by a two-thirds majority of the City Council. Bond proceeds may be invested as allowed in the bond indenture. Concentration of Investment Credit Risk The City places no limit on the amount it may invest in any one issuer. At June 30, 2009, the City had no concentration of credit risk. 42 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30. 2009 NOTE C - PROPERTY TAXES Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August 18, 2008, for collection during this fiscal year and were due on or before December 31. Most of the taxes are collected in November and December. The tax rates assessed at the time were as follows: General Revenue $ .3030/100.00 assessed valuation Public Health .0567/100.00 assessed valuation Special Business District .6763/100.00 assessed valuation #2 (Ad Valorem) Property tax receivable balances as of June 30, 2009 are as follows: NOTE D - CHANGES IN CAPITAL ASSETS A summary of the capital assets for governmental activities included on the government -wide statement of net assets for the year ended June 30, 2009 is as follows: Land Buildings Improvements other than buildings Equipment Infrastructure Construction in progress Total capital assets Balance Accumulated Balance July 1, 2008 Additions Deductions Depreciation June 30, 2009 S 4,948,851 S 421,260 $ S - $ 5,370,111 12,006,556 845,669 599.046 12,253,179 10,438,168 62.127 - Special 2,912.823 622,503 103,172,322 7,993,117 - 4.250.107 General Business Public Debt Revenue District Health Service Total Current property tax $52,372 $5.573 $ 9,800 $ - $67,745 Delinquent property tax 16,212 - 3,035 44 19,291 Reserve for doubtful Property taxes (9,957) - (1,864) (44)1( 1.865) Net property tax receivable $1,573 1 $- 75 171 NOTE D - CHANGES IN CAPITAL ASSETS A summary of the capital assets for governmental activities included on the government -wide statement of net assets for the year ended June 30, 2009 is as follows: Land Buildings Improvements other than buildings Equipment Infrastructure Construction in progress Total capital assets Balance Accumulated Balance July 1, 2008 Additions Deductions Depreciation June 30, 2009 S 4,948,851 S 421,260 $ S - $ 5,370,111 12,006,556 845,669 599.046 12,253,179 10,438,168 62.127 - 4,367,125 2,912.823 622,503 103,172,322 7,993,117 - 4.250.107 3.927.578 1.878 $ 16.162.574 43 610,018 9,890,277 754.485 5,902,960 1651,803 107, 513,636 - 8,175,807 $ 5.615.352 $ 149.105.970 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE D - CHANGES IN CAPITAL ASSETS - Continued Additions and deletions to the enterprise funds for the fiscal year 2009 were $3,014,267 and $473,092 respectively. Additions and deletions to the internal service funds were $909,929 and $535,236 respectively. A summary of the proprietary fund type capital assets included on the proprietary fund statement of net assets for the year ended .lune 30. 2009 is as follows: Land Buildings Improvements other than building Equipment Construction in progress Less: accumulated depreciation Enterprise Internal Fund Service Fund $ 161,990 $ 37.500 91492,458 46,224 116,696,433 155,653 7,271,149 4,009,129 1,270,448 - $134,892,478 $ 4,248.506 42,428,149 2.665,245 $ 92.464.329 LL -58-3261 Depreciation expense was charged to functions as follows in the statement of activities: Governmental Activities: Administrative $ 449,760 Development Services 8,521 Parks and Recreation 391,079 Public Safety 759,642 Public Works 3,976,357 Total 5 585 Business-TVDe Activities: Golf Course $ 44,716 Sewer 2,093,635 Softball Complex 11,598 Solid Waste 162,068 Water 1,369,552 Total 3 6 44 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERNI OBLIGATIONS The following is a summary of changes in the long-term debt included on the City's statement of net assets for the year ended June 30, 2009. Governmental Activities Debt payable July 1, 2008 Premium amortization Retired Additions Debt payable June 30, 2009 Other Revenue Debt* Bonds $ 11,007,793 $ 18,485,931 (26,251) (5,337) (1,390,043) (1,025,000) 20.154.804 $ 29.746 303 S 27,693 $ 17 455.594 Unused Due to Paid Other Leave Governments Total $ 783,608 S 27,693 $30,305,025 - - (31,588) ( 9,931) (17,408) (2,442,382) 20,154,804 S 773,677 5 10,285 $47 985.859 *Other Debt includes Notes Payable, Special Obligation Bonds, Leasehold Revenue Bonds, and Certificates of Participation. Business -Type Activities Bonds payable at July 1, 2008 Discount Premium Ainortization Accumulated Interest Bonds Retired Bonds Issued Bonds payable at June 30, 2009 Other Revenue Debt* Bonds Total $ 864,637 $32,660,905 $33,525,542 565 (20,514) (19,949) - 460,594 460,594 (222.750) (3,993,000) (4,215,750) 42 452 $29.107.985 $29,750.42 *Other Debt includes Notes Payable and Special Obligation Bonds 45 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG TERM OBLIGATIONS - Continued Bonds payable for governmental and business -type activities at June 30, 2009 are comprised of the following individual issues: $ 805,000 Special Obligation Refunding and Improvement Bonds, Series 2002: Year Ending Interest Principal Interest June 30, Rate Due Due 2010 4.00% $ 340,000 $ 25,130 2011 4.00 155,000 15,655 2012 4.10 155,000 9.455 2013 4.10 155,000 3,177 $ 805.000 5$ 3.417 Total $ 365,130 170,655 164,455 158,177 858 417 Principal payments are made annually on October 1. and interest payments are made semi-annually on October 1 and April 1. On October 22, 2002 the City of Cape Girardeau issued $3,125,000 of Special Obligation Refunding and Improvement Bonds Series 2002 with interest rates varying from 3.00% to 4.50%. The bonds are special obligations of the City payable solely from the income and revenues provided for the year plus any unencumbered balances from prior years. The bonds were issued by the City for the purpose of providing funds to (a) pay the costs of refunding the Building and Equipment Leasehold Refunding and Improvement Revenue Bonds, Series 1993, issued on behalf of the City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount of $1,085,000, (b) pay the costs of refunding the Certificates of Participation (Capital Improvements Projects), Series 1994A, issued on behalf of the City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount of $1,255,000 and prepaying the leasehold interest represented thereby, (c) pay the costs of constructing certain street improvements within the City, and (d) pay the costs of issuing the Bonds, under the authority of and in full compliance with the City's Charter and the Constitution and laws of the State of Missouri, and pursuant to an ordinance duly passed (the "Ordinance") and proceedings duly and legally had by the governing body of the City. The outstanding bond liability for the Special Obligation Refiinding and Improvement Bonds Series 2002 is allocated as follows: $620,000 for Governmental activities and $185,000 for Business -type activities. 46 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued $4,485,000 Waterworks System Refunding Revenue Bonds Series 2006A due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 4.00% $ 890,000 $ 179,400 $1,069,400 2011 4.00 925,000 143,800 1,068,800 2012 4.00 965.000 106,800 1,071,800 2013 4.00 1,705,000 68,200 1,773,200 $4.485.000 $ 498;200 SA.983.200 Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1 and September 1. On January 3, 2006 the City issued $7,160,000 of Waterworks System Refunding Revenue Bonds Series 2006A with interest rates varying from 3.5% to 4.0%. The bonds are special limited obligations of the City payable solely from the net income and revenues derived by the City from the operation of the Waterworks System after payment of costs of operation and maintenance. The bonds were issued to provide the City with remaining fiends need to retire $8,170,000 principal amount of Waterworks System Refunding Revenue Bonds, Series 1995. 47 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 950,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1991 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 6.875% $ 165,000 $ 65.312 $ 230,312 2011 6.875 175,000 53,969 228,969 2012 6.875 190,000 41,937 231,937 2013 6.875 205,000 28,875 233,875 2014 6.875 215,000 14,781 229,781 $ 950.000 204 874 $1,154.874 These bonds are dated December 1, 1991. The proceeds of the bond issue were used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on June 1, and interest payments are made semi-annually on June 1 and December 1. The interest due on the Series 1991 Sewer System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the State of Missouri Department of Natural Resources deposits an amount equal to approximately 51.907% of the reimbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be $1,250,000. As bonds are retired 50% of the amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2009 was $475,000. The reserve fund yields 6.71%. During the fiscal year-end June 30, 2001, certain bonds originally issued by the State Environmental Improvement and Energy Resources Authority as part of the State Revolving Fund Program were refunded. Annual debt service savings resulting from this transaction are to be used to offset City debt service payments due on Series 1991 Bonds. During the fiscal year ended June 30, 2009, City interest expense was reduced by $15,305 as a result of this transaction. Over the remaining life of these bonds, the City will receive net present value benefits of approximately $66,296 from this transaction. .• City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued 205,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1993 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 5.400% S 30,000 $ 10,260 $ 40,260 2011 5.400 31,000 8,613 39,613 2012 5.400 33,000 6,885 39,885 2013 5.400 35,000 5,049 40,049 2014 5.400 37,000 3,106 40,106 2015 5.400 39,000 1,053 40,053 1 111 •••• •i� These bonds are dated August 1, 1993. The proceeds of the bond issue were used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on March 1. and interest payments are made semi-annually on March 1 and September 1. The interest due on the Series 1993 Sewer System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the State of Missouri Department of Natural Resources deposits an amount equal to approximately 70% of the reimbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be $350,000. As bonds are retired, 70% of the amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2009 was $147,197. The reserve fund yields 5.15%. 49 City of Cape Girardeau. Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 3,040,369 Water Pollution Control Revenue Bonds (State Revolving Fund Program) Series 1995D due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 6.050% $ 722,409 $ 992,591 $ 1,715,000 2011 6.100 413.574 636,426 1,050,000 2012 6.150 380.828 654,172 1,035,000 2013 6.150 354,978 670,022 1,025,000 2014 6.200 326.281 683,719 1,010,000 2015 6.200 303,920 696,080 1,000,000 2016 6.250 278,844 706,156 985.000 2017 6.250 259,535 715,465 975,000 3.040.369 5,754,631 a8.795.000 These bonds are dated June 1, 1995. The proceeds of the bond issue were used for the extension and improvement of the existing sewerage system serving the City. Principal and interest payments are made annually on January 1 beginning in 1998. The interest due on the Series 1995D Water Pollution Control Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds, the State of Missouri Department of Natural Resources deposits an amount equal to 70% of the disbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be 70% of the principal amount less the original issue discount. As bonds are retired 70% of the amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2009 was $2,128,258. The reserve fund yields 5.83%. 50 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 8,420,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1996 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 5.700% $ 730,000 $ 494,329 $ 1,224,329 2011 5.875 745,000 452,719 1,197,719 2012 5.875 765,000 408,950 1,173,950 2013 5.875 780,000 364,006 1.144,006 2014 5.875 800,000 318,181 1,118,181 2015 5.875 875,000 271,181 1,146,181 2016 5.900 895.000 2193775 1,114,775 2017 5.900 920.000 166,970 1,086,970 2018 5.900 945,000 112,690 1,057,690 2019 5.900 965.000 56,935 1,021,935 $8,420.000 12, 865 7 36 $11,285,716 These bonds are dated June 1, 1996. The proceeds of the bond issue werc used for the extension and improvement of the existing sewerage system serving the City. Principal payments are made annually on January 1. Interest is paid semi-annually on January 1 and July 1 beginning in 1997. The interest due on the Series 1996 Sewerage System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds, the State of Missouri Department of Natural Resources deposits an amount equal to 70% of the disbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve will be $9,474,500. As bonds are retired, 70% of the amount of bonds retired will be repaid to the Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2009 was $6,061,063. The reserve fund yields 5.70%. 51 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued During the fiscal year ended June 30, 2001, certain bonds originally issued by the State Environmental Improvement and Energy Resources Authority as part of the State Revolving Fund Program were refunded. Annual debt service savings resulting from this transaction are to be used to offset City debt service payments due on Series 1996 Bonds. During the fiscal year ended June 30, 2009, City interest expense was reduced by $16,329 as a result of this transaction. Over the remaining life of these bonds, the City will receive net present value benefits of approximately $141,778 from this transaction. $ 7,805,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as follows: Year Ending Interest Principal Interest June 30. Rate Due Due Total 2010 4.625% $ 165,000 $ 419.319 $ 584,319 2011 4.700 185,000 411,156 596,156 2012 5.500 215,000 400,896 615,896 2013 5.500 230,000 388,659 618,659 2014 5.000 250;000 376,084 626,084 2015 5.625 275,000 362,099 637,099 2016 5.625 475,000 341,006 816,006 2017 5.625 555,000 312,037 867,037 2018 5.300 590,000 280,793 870,793 2019 5.400 1,590,000 222,228 1.812,228 2020 5.450 1,655,000 134,199 1,789,199 2021 5.500 1,620,000 44,550 1,664,550 $7.805.000 11,693 026 IU.498,026 These bonds are dated November 1, 2000. The proceeds of the bond issue will be used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on July 1. and interestpayments are made semi-annually on July 1 and January 1. 52 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued The interest due on the Series 2000, Sewer System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the State of Missouri Department of Natural Resources deposits an amount equal to approximately 70% of the reimbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be $5,848,500. As bonds are retired 70% of the amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2009 was $5,619,605. The reserve fund yields 5.16%. $17,455,000 Waterworks System Revenue Bonds (State Revolving Fund Program) Series 1998 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 4.375% $ 1,080,000 $ 866,400 $ 1,946,400 2011 5.250 1,110,000 819,150 1,929,150 2012 5.250 1,215,000 760,875 1,975,875 2013 5.250 1,300,000 697,087 1,997,087 2014 5.250 2,350,000 628,838 2.978,838 2015 5.250 2,445,000 505,462 2,950,462 2016 5.250 2,550,000 377,100 2,927,100 2017 4.500 2,655,000 243,225 2,898,225 2018 4.500 2,750,000 123,750 2.873,750 17.455.000 i5S2LU-7 $22,476.887 These bonds are dated December 1, 1998. The proceeds of the bond issue will be used for the extension and improvements to the waterworks system. Principal payments are made annually on January 1. Interest is paid semi-annually on January 1 and July 1 beginning on July 1, 1999. 53 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued The interest due on the Series 1998 Waterworks System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issues trustee. As the City is reimbursed for waterworks system expenditures from the construction funds, the Department of Natural Resources deposits an amount equal to 3 3.4 1 % of the disbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve will be $8,517.235. As bonds are paid off, 33.41% of the amount of bonds retired will be repaid to the Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30. 2009 was $5,145,503. The reserve fund yields 4.71%. $19,885,000 Leasehold Revenue Bonds, Series 2009 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 4.000% $ 1,790,000 $ 752,403 $2,542,403 2011 3.600 1,835,000 652,756 2,487,756 2012 3.600 1,895,000 593,118 2,488,118 2013 3.700 1,955,000 531,532 2,486,532 2014 3.800 2,015,000 472,882 2,487,882 2015 3.900 2,080,000 407,394 2,487,394 2016 4.000 2,150,000 334,594 2,484,594 2017 4.000 2,240,000 248,594 2,488,594 2018 4.000 2,330,000 158,994 2,488,994 2019 4.100 1.595,000 65,794 1,660,794 $19.885.000 11218,061 $24.103.061 The revenue bonds are an obligation of the City of Cape Girardeau, Missouri. Principal and interest will be paid by the City from proceeds of a '/2 cent sales tax. Proceeds of the bonds will be used for the construction of a family aquatic center and for storm water control improvements Principal payments are made annually on April 1, and interest payments are made semi-annually on April 1 and October 1. 54 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued $2,235,000 Certificates of Participation, Series 2001: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 4.800% $ 135,000 $ 129,240 $ 264,240 2011 5.000 140,000 122,760 262,760 2012 5.800 150,000 115,760 265,760 2013 5.800 160,000 106,760 266,760 2014 5.800 165,000 97,160 2625160 2015 5.800 175,000 87,260 2625260 2016 5.800 190.000 76,760 266,760 2017 5.800 200,000 65,360 265,360 2018 6.000 210,000 53,360 263,360 2019 6.000 225,000 415180 266,180 2020 6.000 235,000 28,130 263,130 2021 6.000 250,000 14,500 264,500 $2,235.000 UJZ33,2- The certificates are obligations of the City under a Lease Purchase Agreement between the City and UMB Bank, NA. The Corporation also acts as the trustee who receives the rental payments for the benefit of the certificate holders. The purpose of the 2001 Series certificates was to construct and equip an airport manufacturing facility. Principal payments are made annually on April 1. and interest payments are made semi-annually on April 1 and October 1. 55 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued $5,735,000 Special Obligation Bonds, Series 2005: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 3.500% $ 645,000 $ 232,011 $ 877,011 2011 3.500 655,000 209,436 864,436 2012 3.500 680,000 186,511 866,511 2013 3.625 700,000 162,711 862,711 2014 4.000 690,000 137,336 827,336 2015 5.000 1.245,000 109.736 1,354.736 2016 4.000 80,000 47,486 127,486 2017 4.000 85,000 44,286 129,286 2018 4.100 90,000 40,886 130,886 2019 4.125 90,000 37,196 127.196 2020 4.200 95.000 33,484 128.484 2021 4.250 100,000 29,494 129,494 2022 4.250 105,000 25,244 130,244 2023 4.375 110,000 20,781 130,781 2024 4.375 115,000 15,969 130,969 2025 4.375 250,000 10,940 260,940 $5,735,000 1.343,507 $Z 7,0 8,507 Principal payments are made annually on June 1, and interest payments are made semi-annually on June 1 and December 1. In May 2005, the City of Cape Girardeau issued 58,190.000 of Special Obligation Bonds Series 2005 with interest rates varying from 3% to 5%. The bonds are special obligations of the City payable solely from the revenues derived from annual appropriations by the City Council. The bonds were issued by the City for the purpose of providing funds to (a) construct, furnish, and equip a new fire station, renovate and improve existing fire and police stations, reimburse the City for the purchase of a new public works facility, and acquire vehicles for the police and fire departments, (b) refinance various outstanding obligations of the City, (c) fund a debt service reserve fund for the Bonds. and (d) pay the costs of issuing the Bonds, under the authority of and in full compliance with the City's Charter and the Constitution and laws of the State of Missouri, and pursuant to an ordinance duly passed and proceedings duly and legally had by the governing body of the City. 56 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued On February 9, 2006, the City of Cape Girardeau entered into a promissory note with the Bank of America for $2,000,000. The purpose of the note was to finance additional costs on constructing fire station #3, purchase of a site for a future fire station, equipment for the sewer and solid waste funds, and site improvements at the new public works headquarter. The outstanding liability for the note is allocated as follows: $1.031,250 for governmental activities and $618,750 for business -type activities. $1,650.000 Bank of America 2006 Promissory Note: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2010 1.094% $ 100,000 $ 18,051 $ 118,051 2011 1.094 100,000 16,957 116,957 2012 1.094 100,000 15,863 115.863 2013 1.094 100,000 14,769 114,769 2014 1.094 100,000 13,675 113,675 2015 1.094 100,000 12,581 112,581 2016 1.094 100,000 11,487 111,487 2017 1.094 10000 10,393 110,393 2018 1.094 100,000 9,299 109,299 2019 1.094 100,000 8,205 108,205 2020 1.094 100,000 7.111 107,111 2021 1.094 100,000 6,017 106,017 2022 1.094 100,000 4,923 104,923 2023 1.094 100,000 3,829 103,829 2024 1.094 100,000 2,735 102,735 2025 1.094 100,000 1,641 101,641 2026 1.094 50,000 547 50,547 1.650.000 $ 158,083 $ 1.808.083 Principal payments of $50,000 are made semi-annually on January 1 and July 1. The principal payments are amortized over 20 years. The City may prepay the note at any time with no additional charges. Interest accrues at a variable rate equal to the sum of the 30 -day LIBOR multiplied by 60.938%; plus 0.813%. The rate at June 30, 2009 was 1.094%. 57 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued The annual requirements to amortize all debt outstanding as of June 30, 2009 including total interest payments of $25,153,615 are as follows: $ 7.936.924 $ 60.433.689 $24.103.061 $2,302.080 $ 97.948.984 The cash and investments available to service revenue bonds are $987,037 and $5,364,573 for the governmental and business -type activities. respectively. The cash and investments available to service the special obligation bonds and certificates of participation in governmental activities are $682,644 and $1,149,290, respectively. Included in business -type activities restricted cash and investments on the statement of net assets is $35,303. which is the balance in the 2000 sewer project account which represent incomplete projects at June 30. 2009. If the project funds are not used, the remaining balance can be applied against debt. 58 Special Leasehold Certificates Year Ending Obligation Revenue Revenue of Promissory June 30. Bonds Bonds Bonds Participation Note Total 2010 $ 1,242,141 $ 6,810,020 $ 2,542,403 $ 264,240 $ 90,398 $ 10,949,202 2011 1,035,091 6,110,407 2,487,756 262,760 167.165 10,063,179 2012 1,030,966 6,144,343 2,488,118 265,760 163;535 10,092,722 2013 1.020,888 6,831,876 2,486,532 266,760 262,361 10,868,417 2014 827.336 6,002,990 2,487.882 262,160 146,275 9,726,643 2015 1,354,736 5,773,795 2,487,394 262,260 142,645 10,020,830 2016 127,486 5,842,881 2.484,594 266,760 139.015 8,860,736 2017 129,286 5,827,232 2,4889594 265,360 135,484 8,845,956 2018 130,886 4,802,233 2,488,994 263,360 131,755 7,817,228 2019 127,196 2,834,163 1,660,794 266,180 128,125 5,016,458 2020 128.484 1,789.199 - 263,130 124,495 2,305,308 2021 129,494 1,664,550 264,500 120,925 2,179,469 2022 130,244 - - - 117,235 247,479 2023 130,781 - - - 113,602 244,383 2024 130,969 - - - 110,005 240.974 2025 260,940 - - - 106,345 367,285 2026 - - - 102.715 102,715 $ 7.936.924 $ 60.433.689 $24.103.061 $2,302.080 $ 97.948.984 The cash and investments available to service revenue bonds are $987,037 and $5,364,573 for the governmental and business -type activities. respectively. The cash and investments available to service the special obligation bonds and certificates of participation in governmental activities are $682,644 and $1,149,290, respectively. Included in business -type activities restricted cash and investments on the statement of net assets is $35,303. which is the balance in the 2000 sewer project account which represent incomplete projects at June 30. 2009. If the project funds are not used, the remaining balance can be applied against debt. 58 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30. 2009 NOTE E - LONG-TERM OBLIGATIONS - Continued Interest expense was charged to functions as follows in the statement of activities: Governmental Activities: Interest and Other Costs $1,388,445 Total 1 3 8 8 445 Business-Tvbe Activities: Golf Course $ 13,556 Sewer 702.247 Softball Complex 9,500 Solid Waste 36,122 Water 249,309 Total 1 010.734 Missouri statutes liinit the amount of general obligation debt that a city can issue to 5.00% of the total assessed value of taxable property located within that city's boundaries. The legal debt margin for the City of Cape Girardeau is $26,343,182. NOTE F - DEFICIT FUND BALANCES/RETAINED EARNINGS The Park Improvements Fund's, Golf Course Fund's and the Softball Complex Fund's total liabilities exceeded their total assets by $5,447, $51,943 and $80,265 respectively. 59 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE G - PENSION PLAN 1. Plan Description The City of Cape Girardeau participates in the Missouri Local Government Employees Retirement System (LAGERS), an agent multiple -employer public employee retirement system that acts as a common investment and administrative agent for local government entities in Missouri. LAGERS is a defined benefit pension plan which provides retirement, disability, and death benefits to plan members and beneficiaries. LAGERS was created and is governed by statute, Section RSMo. 70.600 - 70.755. As such, it is the system's responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401 a and it is tax exempt. The Missouri Local Govermnent Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to LAGERS, PO Box 1665, Jefferson City, MO 65102 or by calling 1-800-447-4334. 2. Funding Policy The City of Cape Girardeau's full-time employees do not contribute to the pension plan. The political subdivision is required to contribute at an actuarially determined rate; the current rate is 6.1 % (general), 6.1 % (police), and 12.1 % (fire) of annual covered payroll. The contribution requirements of plan members are determined by the governing body of the political subdivision. The contribution provisions of the political subdivision are established by state statute. 3. Annual Pension Cost For 2009, the political subdivision's annual pension cost of $1,006,174 was equal to the required and actual contributions. The required contribution was determined as part of the February 28, 2007 and/or February 28, 2008 annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of February 29, 2009 included (a) a rate of return on the investment of present and future assets of 7.5% per year, compounded annually, (b) projected salary increases of 4.0% per year, compounded annually. attributable to inflation, (c) additional projected salary increases ranging from 0.0% to 6.0% per year, depending on age and division, attributable to seniority/merit, (d) pre -retirement mortality based on the RP - 2000 Combined Healthy Table set back 0 years for men and 0 years for women, and (e) post-retirement mortality based on the 1971 Group Annuity Mortality table for males projected to 2000 set back 1 year for men and 7 years for women. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The amortization period at February 28, 2009 was 15 years. City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE G - PENSION PLAN - Continued Three -Year Trend Information Fiscal Annual Percentage Net Year Pension Of APC Pension Ending Cost (APC) Contributed Obligation 06/30/07 $1,065,567 100% $ 0 06/30/08 $1,140,078 100% $ 0 06/30/09 $1,006,174 100% $ 0 Note: The above assets and actuarial accrued liability do not include the assets and present value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The actuarial assumptions were changed in conjunction with the February 28, 2006 annual actuarial valuations. For a complete description of the actuarial assumptions used in the annual valuations, please contact the LAGERS office in Jefferson City. NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS 1. Description The City follows the provisions of GASB Statement No. 45, Accounting and Financial Reporting by Employers for- Postemployinent Benefits Other Than Pensions. In addition to the relevant disclosures within this note related to GASB Statement No. 45. the financial statements reflect a long-term liability and related expenses of $929,392 and $1,487,797, respectively, in the governmental and business -type activities combined. The City, through its substantive commitment to provide other post -employment benefits (OPEB), maintains a single -employer defined benefit plan to provide certain postretirement healthcare benefits to all former full-time employees until the retiree is eligible for Medicare (age 65). Such benefits are not available to members' spouses or dependents; rather, only to former employees as previously described. Specific details of the Plan include the provision of certain medical and dental insurance coverage. These benefits are provided through insurance companies. The City is under no statutory or contractual obligation to provide these postretirement healthcare benefits. Because the Plan consists solely of the City's firm commitment to provide OPEB through the payment of premiums to insurance companies on behalf of its eligible retirees, no stand-alone financial report is either available or generated. 61 City of Cape Girardeau. Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30. 2009 NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS - Continued 2. FundinIZ Policy Premiums under the Plan for post -employment healthcare benefits are funded in accordance with rates established by the City from appropriate governmental and business -type funds. For the year ended June 30, 2009. the City paid the full premium cost for retired employees who were hired prior to January 1, 2007. For employees hired on/after January 1, 2007, the City paid a percentage of the full premium cost for retired employees with single coverage according to years of service at retirement. For employees with 10 to 14 years of service at retirement the City's subsidy was 50%. The subsidy for employees with 15 to 19 years of service was 60%; 20 to 24 years was 70%, and employees with more than 24 years of service at retirement received 100% subsidy. The retiree is responsible for the full cost of dependent coverage. The plan is financed on a pay-as-you-go basis. 3. Annual OPEB Cost and Net OPEB Obligation The City's annual OPEB cost is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period of 30 years. The following table illustrates the components of the City's annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the City's net OPEB obligation: Annual required contribution $ 1,487,797 Interest on net OPEB obligation -0- Adjustment to annual required contribution -0- Annual OPEB cost $ 1.487,797 Contributions made (558,405) Increase in net OPEB obligation $ 929,392 Net OPEB obligation, July 1, 2008 -0- Net OPEB obligation, June 30, 2009 $ 929,392 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan. and the net OPEB obligation for 2009 were as follows: Percentage of Net OPEB Fiscal Year Annual Annual OPEB Obligation - Ended OPEB Cost Cost Contributed End of Year 6/30/09 $1,487.797 37.53% $ 929,392 Because 2009 was the transition for GASB Statement 45, requirements of GASB Statement No. 45 have been implemented prospectively; therefore, the above illustration does not reflect similar information respective of years preceding 2009. 62 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS - Continued 4. Funding Status and Funding Progress As of July 1, 2008, the most recent actuarial valuation date, the Plan was not funded. The actuarial accrued liability for benefits equaled $12,044,967, resulting in an unfunded actuarial accrued liability (UAAL) of $12.044,967. The covered payroll (annual payroll of active employees covered by the Plan) equaled $12,992,284, and the ratio of the UAAL to the covered payroll equaled 92.71 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as RSI following the notes to the financial statements, is to present multiyear trend information about whether the actuarial value of the Plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. However, because the City maintains no Plan assets, information relative to Plan asset required disclosures is not applicable. Additionally, because 2009 was the year of transition for GASB Statement No. 45, requirements of GASB Statement No. 45 have been implemented prospectively; therefore, the RSI does not reflect similar information respective of years preceding 2009. 5. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive Plan (the Plan as understood by the City and Plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the City and Plan members to that point. There are no legal or contractual funding limitations that would potentially affect the projection of benefits for financial accounting purposes. The actuarial methods and.assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. In the actuarial valuation dated July 1, 2008, the projected unit credit cost actuarial method was used. Because the City funds its OPEB on a pay-as-you-go basis, the plan has no assets (investments) used specifically for paying the post-retirement medical benefits: therefore, the actuarial assumptions included a 4.5% discount rate, which approximates the expected rate of return on non -pension investments held by the City. Actuarial assumptions also included annual healthcare and dental cost trend rates of 10.0% and 5.0%, respectively, initially, reduced by decrements to an ultimate rate of 4.5% and 3.0%, respectively for healthcare and dental costs after ten years. The UAAL is being amortized as a level dollar amount over thirty years based on an open group. 63 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE I - INTEREST EXPENSE Interest and handling charges, totaling $1,161,808, excluding $44,981 of interfund interest, was incurred by governmental funds during the year ended June 30, 2009. Interest and handling charges, totaling $968.433 excluding $52,642 of interfund interest, was incurred by proprietary funds during the year ended June 30, 2009. No interest cost was capitalized as part of the cost of assets constructed during the period. NOTE J - INTERFUND ACTIVITY A. The following is a summary of interfund balances as of June 30, 2009: Advance to/from other funds: Advances from Advances to General Fund S 1,038.196 S - Solid Waste Fund - 620.000 Golf Course Fund - 243.258 Softball Complex Fund - 174,938 S 1,03 26 The interfund balances are a result of advances to purchase capital assets and to pay for operating expenses. Repayments are made as cash flows permit. If cash flows are not sufficient, repayments are deferred to subsequent years. 64 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE J - INTERFUND ACTIVITY - Continued The City makes transfers between various funds for routine and normal operating expenses and for capital asset requisitions. B. The following is a summary of interfund transfers for the year ended June 30, 2009: Fund Transfer From Transfer To General Fund $ 4,092,200 $ 4,330,912 Airport Fund 254,235 694,277 Park and Recreation Fund - 1,017,834 Vision 2000 Fund - 26 Convention and Tourism 6,500 - Downtown Business District Fund 50.000 - Housing Development Fund - 15,813 Motor Fuel Tax Fund 1, 370;000 - Capital Improvement Sales Tax - Water System Improvements 1,604,560 128,404 Capital Improvement Sales Tax - Sewer System Improvements 2,210161 - Fire Sales Tax Fund 2,093,112 - Public Safety Trust Fund 1,075,624 2,093,112 Transportation Sales Tax Trust III - 325,000 Park/Storm Water Sales Tax 582,593 - Park/Storm Water Sales Tax -Capital 863,465 835,832 Debt Service Fund - 254,235 Street Improvement Fund 75,000 - FAU Grants Fund - 150,000 Community Development Block Grant Project Fund 1,097 99,764 Water System Improvement Projects Fund 128,404 1,484,560 Storm Water Projects from Storm Water Tax - 116,734 Park Improvement Projects from Park Sales Tax 835,832 792,530 Sewer Fund 5,000 2,381640 Water Fund 500 128,000 Solid Waste Fund 10,205 - Golf Course Fund - 128,311 Softball Complex Fund - 373,161 Fleet Management Fund 14,999 500 Equipment Replacement Fund 85.263 $ 15,358,85Q 7,205 $ 15 3 aMQ 65 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE K - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains five enterprise funds which provide sewer, water, solid waste, golf, and softball complex services. Segment information for the year ended June 30, 2009 was as follows: Softball Sewer Water Solid Waste Golf Course Complex Total Fund Fund Fund Fund Fund Enterprise Operating revenues $ 2,984,230 $5,822,350 $3,353,500 S 320,573 $ 142,610 $12,622,522 Depreciation 2,093,635 1,369,552 162,068 44,716 11,598 3,681,569 Operating Income (Loss) (1,816,108) 323,221 212,733 (196,563) (359,952) (17836,669) Operating transfers in 2.382,640 128,000 - 128,311 3731161 3,012,112 Net Income (Loss) 473,616 1,680,680 266,481 (29,483) 20,535 2,411,829 Current Capital Contributions 234,260 1,142,210 - 14,729 1,391,199 Property, Plant and Equipment Additions 1,212,087 1,718,841 68.610 - 14,729 3,014,267 Deletions 137,205 335,887 - - - 473,092 Net Working Capital (1,466.733) 2,507,948 1,510,096 6,082 11,101 2,601,201 Total Assets 58,463,720 46.203,427 2,820,719 250,277 177,262 107,915,405 Bonds and Other Long-term Liabilities Payable from Operating Revenues 24,949.706 4,588,813 985,459 252,480 177,867 30,954,325 Total Net Assets $32,541,390 $40,917,506 51,560,441 S (51,943) S (80,265) 574,887,129 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30. 2009 NOTE L - RESERVATION OF FUND EQUITY At June 30, 2009, the City had reserved its fund equity as follows: General Fund Reserved for emergency fund 53,164,101 Reserved for prepaid items 73,155 Reserved for advance 1,03 8,196 Reserved for mausoleum maintenance 104,883 Reserved for local access channel 8,579 Reserved for encumbrances 51,963 LouI . Airport Fund Reserved for prepaid items $ 18,812 Reserved for encumbrances 6,997 25 0 Parks and Recreation Fund Reserved for prepaid items S 4,187 Reserved for operations and maintenance 4,498 Reserved for encumbrances 17,047 25 7 2 Transportation Sales Tax Trust Fund III Reserved for encumbrances 5 3 77 Park Projects from Parks Sales Tax Reserved for encumbrances $3,022.4-2 Other Governmental Funds Reserved for encumbrances 52,887,638 Reserved for emergencies 943,506 Reserved for prepaid items 45,019 Reserved for debt service 260,486 Reserved for river campus 150,921 4 287 0 67 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30- 2009 NOTE \'I - RESERVED RETAINED EARNINGS AND RESTRICTED ASSET ACCOUNTS At June 30, 2009, the City has restricted assets in its Proprietary Funds as follows: Depreciation Revenue Bond and Bond Sinking and Replacement Construction Reserve Fund Total Sewer Fund $ 127.000 S 35.344 $3,460342 $ 3.623,086 Water Fund 1,300,000 4,238 1,950,388 3,254,626 Solid Waste Fund 3.967 792 4.759 $1-4Z � LAL5M 11 22 6.882 471 NOTE N - LANDFILL CLOSURE AND POSTCLOSURE CARE COST State and federal laws and regulations require the City to place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. The City closed its landfill in the fiscal year ending June 30, 1994, and an expense provision and related liability were recognized at that tithe based on the future closure and postclosure care costs that were estimated to be incurred near or after the date the landfill no longer accepted waste. The entire amount of the estimated total costs for landfill closure and postclosure care costs was recognized in prior years since the recognition is based on landfill capacity used to date and the landfill was filled to capacity in prior years. The estimated total future liability for landfill postclosure care costs is $52,500 as of June 30, 2009, which is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2009. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City has used the option of a Contract of Obligation as the financial assurance instrument for the landfill. The City issued bonds in October 1994 from which the proceeds were used to pay the closure costs. 68 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE O - RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and employee health benefits. These risks, with the exception of those discussed in the following paragraphs, are covered by commercial insurance. Settled claims have not exceeded this commercial coverage in any of the past ten fiscal years. The City is a member of the Missouri Public Entity Risk Management Fund, a not-for-profit public entity insurance pool established by the state legislature. Through this pool, the City receives coverage for general liability, law enforcement liability, errors and omissions, and employee benefit liability. Risks for these coverages are spread across members of the fund. Currently the fund is comprised of 899 Missouri counties, municipalities, and special districts. Premiums for these coverages are actuarially determined based on actual claims of the pool and individual claims of the City. Each year, portions of premiums not required because of below expected claims are returned to the members. The City has received refunds of premiums in each of the last ten years and has used them to offset the cost of the succeeding year's premiums. Vehicle loss and accident liability is carried by Savers Property and Casualty Insurance. It is rated "13++" by A.M. Best. Airport liability is carried by Specialty Insurance Company. It is rated "A" by A.M. Best. Property insurance is carried by Chubb Group of Insurance Companies. It is rated "A++" by A.M. Best The City has established self-insurance plans for employees' health insurance and workers' compensation. Both of these are accounted for using internal service funds. Under each plan, the City is substantially self- insured and uses an administrator to handle claims management. The City provided health coverage to its employees through a minimum premium plan administered by Right Choice Managed Care, which had an "A-" rating by A.M. Best. Under this plan, the City paid the administrator a monthly premium for claims administration, cost management, and specific and aggregate stop loss coverage. The City reimbursed the administrator for claims paid up to the specific stop loss amount of $125,000 and $125,000 annually per employee and up to the aggregate stop loss amount of approximately $2,400,000 and $2,400,000 annually beginning January 1, 2007 and 2008, respectively, for all employees. These limits apply only to claims made during the respective calendar years. Rates were charged by the internal service fund to the other City funds to cover the monthly premium to the administrator and claims up to the aggregate stop loss amount. Corporate Claims Management. Inc. administers the City's workers' compensation plan. Under this plan, the City pays the administrator a per claim fee to administer its claims. All claims are paid directly by the City. The City has purchased insurance coverage from Safety National Casualty Corp. that limits the maximum individual claims to $400,000, for all regular employees. Additionally, $5,000,000 in coverage is provided for annual claims in excess of $1,200,000. Rates are charged by the internal service fiord to the other City funds based on rates and experience factors established by the National Council on Compensation Insurance. Safety National is rated "A" by A. M. Best. City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June '30, 2009 NOTE O - RISK MANAGEMENT - Continued Claims liability is estimated using data supplied by the administrator. The claims activity during the last five years is summarized as follows: CLAIMS LIABILITIES RECONCILIATION Balance June 30, 2004 Provision for Incurred Claims Payments of Claims Balance June 30, 2005 Provision for Incurred Claims Payment of Claims Balance June 30, 2006 Provision for Incurred Claims Payment of Claims Balance June 30, 2007 Provision for Incurred Claims Payment of Claims Balance June 30, 2008 Provision for Incurred Claims Payment of Claims Balance June 30, 2009 Health Insurance $ 330,000 1,761,942 (1.916.942) $ 175,000 2,400,142 (2,065,642) $ 509,500 2,520,411 (2,384,161) $ 645.750 1,812,199 (2.346,449) $ 111,500 1,860,053 (1,773.053) $ 198.500 Workers' Compensation $ 355.000 526,837 (346,837) $ 535,000 548,809 (378,809) $ 705,000 517,676 (552,676) $ 670,000 6,009 (406,009) $ 270,000 523,905 (363,905) $ 430,000 Total S 685,000 2,288,779 (2,263,779) $ 710,000 2,948,951 (2.444.451) 1,214,500 3,038,087 (2,936,837) $ 1,315,750 1,818,208 (2,752,458) $ 381,500 2,383,958 (2,136,958) $ 628.500 NOTE P - CONCENTRATION OF CREDIT RISK/BAD DEBT ALLONVANCE The City has uncollateralized utility accounts receivable generated within a limited geographical region primarily consisting of its City limits. The City also has taxes, special assessments, and user fees receivable which are concentrated among its citizens. Some of these items attach as liens against real and personal property. The maximum accounting loss is the amount shown as utility charges receivable on the statement of net assets. At June 30, 2009, utility receivables totaled $1,730,081. On the financial statements, the utility receivables are shown net of the allowance for doubtful accounts of $124,219. This results in net utility receivable of $1,605,862. During the year ended June 30. 2009, the allowance was increased by $82,611 or approximately .70% of the current year's utility charges and accounts totaling $89,857 were written off. 70 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE Q - COMMITMENTS AND CONTINGENCIES 1. Litigation Various claims and lawsuits are pending against the City. In the opinion of City management, the potential loss on all claims and lawsuits will not be significant to the City's financial statements. 2. Grant Audit The City receives Federal and State Grants for specific purposes that are subject to review and audit by various Federal and State agencies. Such audits could result in a request for reimbursement by any of the Federal and State agencies for expenditures disallowed under the terms and conditions of the appropriate agency. In the opinion of City management, such disallowances, if any, will not be significant. 3. Construction Commitments As of June 30, 2009, the City had construction commitments outstanding of $10,437,518. The construction commitments represent incomplete portions of contracts entered into to construct the following: various street projects, renovation of the police station and Fire Station #1, generator installation and HVAC upgrade at Fire Station #1, various rehab projects at the airport, floodwall mural lighting, new trail construction. new water supply wells, improvements to existing park structures, new maintenance building at Arena Park, new family aquatic center, parking lot overlay at water plant #2, and housing rehabilitation. These contracts are expected to be completed within the next fiscal year. 4. Encumbrances As of June 30, 2009. the City had encumbrances outstanding of $11,487,072. NOTE R — PRIOR PERIOD ADJUSTMENTS The ($9,714.53) prior period adjustment in the General fund on the Governmental Fund Statement of Revenues. Expenditures, and Changes in Fund Balance reflects grant revenue recognized in previous years based on expenditures that were determined to be unallowable this year. The ($6,052.61) prior period adjustment in the Airport fund represents Federal Excise Tax that was paid in prior years on fuel sold to Military and Federal Civilian Aircraft that the City was not able to collect. 71 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE S - CONTINGENCY In June 2004, the City of Cape Girardeau and Cape Girardeau County entered into a development agreement with a local business. Under the agreement, the local business agreed to pay for certain public improvements incurred in conjunction with the construction of a new retail facility and the City and County agreed to reimburse the local business for the cost of these improvements up to a maximum of $4,000,000 over an estimated 15 years. The local business has completed these improvements with a total cost of $2,668,646. The City is required by the development agreement to reimburse the local business for $2,134,917 of these costs through scheduled quarterly payments over the next fifteen years from available revenues. Available revenues are defined in the development agreement as 75% of the City's quarterly net revenues from specific sales taxes generated by the business operations of the new retail facility which exceed $64,000. The rates of the specified sales taxes currently equal 2%. Sales taxes with rates currently equal to 1 % will expire during the term of this agreement. The City will be required to substitute revenues for sales taxes with equivalent rates, if available, when the specific sales taxes expire. Required quarterly payments increase annually per the repayment schedule included in the development agreement. To the extent that the available revenues for any quarter are less than the required quarterly payment due, the unpaid amount will be added to the next scheduled quarterly amount due A ithout penalties. Any amounts unpaid at the end of 15 years will be payable quarterly from available revenues for the remainder of the agreement. Any amounts unpaid at the end of the agreement will not be required to be paid. The term of the developer agreement is 20 years from the execution of the agreement. During the fiscal year ended June 30, 2009, the City paid $15,255 under the development agreement. This amount is included in the Development Services expenses on the Statement of Activities. 2. In June 2004, the City of Cape Girardeau and Cape Girardeau County entered into a development agreement with a local real estate developer. Under the agreement, the local developer agreed to pay for certain public improvements incurred in conjunction with the development of a 60 acre retail development and the City and County agreed to reimburse the local business for the cost of these improvements from available net sales tax revenue generated from any businesses operations located in the development. The local developer has completed these improvements with a total cost of $2,998,434. The City and County are required by the development agreement to reimburse the developer for these costs plus 4% interest with quarterly payments from available revenue. Available revenue is defined by the agreement as all the net sales tax revenue generated by two .25% City capital improvement sales taxes and the .50% City transportation sales tax and 50% of the net sales tax revenue generated by a.50% County sales tax. All City sales taxes have expiration date that could occur before the total costs of the improvements are reimbursed to the developer. The County sales tax has no expiration date. No provision is made to replace revenues from the City sales taxes that expire if they are not extended. The development agreement remains in effect until the total cost of the public improvements is reimbursed to the developer. 72 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2009 NOTE S - CONTINGENCY - Continued The City and the County are obligated only to make quarterly payments as may lawfully be made from funds budgeted and appropriated for that purpose by the City and County. During the fiscal year ended June 30, 2009, the City incurred payments of $119,633 under the development agreement. This amount is included in the Development Services expenses on the statement of activities. 3. During previous fiscal year the City entered into a development agreement with Greater Missouri Builders, Inc. (GMB) to reimburse them for costs associated with the Town Plaza Redevelopment Project. In conjunction with this agreement the City established the Town Plaza Community Improvement District (CID) and determined the project area to be blighted pursuant to Chapter 353 of the Missouri Revised Statutes. This project involves the conversion of the former Sears facility into a call center for National Asset Recover Services (NABS) and other various improvements, such as facade improvements, parking facilities, roof reconstruction, and HVAC enhancements. Total reimbursements to GMB for redevelopment costs were limited to $3.6 million plus 7.5% interest. These reimbursements will be made from incremental County and City sales tax revenues, an additional CID sales tax, and real estate tax abatements. Reimbursements from incremental County and City sales tax revenue will be limited to $1.2 of the $3.6 million total. Incremental County and City sales tax revenue is defined as the difference in future tax revenues from the City's 1% general sales tax and .5% capital improvement sales tax and half the County's .5% general sales tax and the revenues from these taxes from the project area in calendar year 2006. It's anticipated that the CID will implement a 1% sales tax. Improvements to the redevelopment project will receive 100% real estate tax abatement for the first 10 years and 50% real estate tax abatement for the next 15 years. The current Sears facility will receive 50% real estate tax abatement for 25 years. Based on 2006 assessed values the abatement of City taxes on the unimproved Sears facility would be $627.3. Beginning in year six of the agreement, 50% of the gross rentals from the NABS site will be used to supplement the incremental sales tax revenues. Reimbursements from incremental sales tax revenues expire with repayment of the amount to be paid by incremental sales tax or 20 years whichever comes first. This project was completed during the year at a cost of $3,203,308. Reimbursement from incremental County and City sales tax revenue will be limited to $1,164,839. 73 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30. 2009 NOTE S - CONTINGENCY - Continued The City and the County are obligated to make quarterly payments as may lawfully be made from funds budgeted and appropriated for that purpose by the City and County. During the fiscal year ended June 30, 2009, the City incurred payments of $8,959 under the development agreement. This amount is included in the Development Services expenses on the Statement of Activities. 74 REQUIRED SUPPLEMENTAL INFORMATION City of Cape Girardeau General Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 REVENUES Taxes Licenses & permits Intergovernmental Charges for services Internal charges Fines and forfeits Miscellaneous Investment revenue Total revenues EXPENDITURES Current Administrative Contingency Development Services Parks and Recreation v Public Safety V1 Public Works Total current Debt service: Administrative Charges Interest Principal Total debt service Capital outlay: Administrative Development Services Parks and Recreation Public Safety Public Works Total capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Special assessments Advance repayments Asset disposition Other non-operating revenue Transfers out Total other financing sources and uses and special items Net change in fund balances Fund balances — beginning Prior period adjustment Fund balances — ending Budgeted Amounts Original $ 14,154,216.00 1,370,700.00 592,499.00 294,342.00 979,650.00 853,000.00 250,860.00 160.588.00 18,655,855.00 2,267,551.00 50,000.00 1,667,853.00 1,688,250.00 11,326,766.00 2,136,826.00 19,137,246.00 84,796.00 103,493.00 188,289.00 14,000.00 7,500.00 14,148.00 35,648.00 19,361,183.00 (705,328.00) 4,534,270.00 7,500.00 39,255.00 (3,913,596.00) 667,429.00 (37,899.00) 3,832,024.46 (9,714.53) $ 3,784,410.93 Final $ 14,154,216.00 1,370,700.00 592,499.00 294,342.00 979,650.00 853,000.00 250,860.00 160,588.00 18,655,855.00 2,440,551.00 522,000.00 1,528,963.00 1,692,750.00 11,361,766.00 2,113,826.00 19,659,856.00 84,796.00 103,493.00 188,289.00 97,890.00 7,500.00 14,148.00 92,000.00 211,538.00 20,059,683.00 (1,403,828.00) 4,534,270.00 7,500.00 39,255.00 (4,583,596.00) (2,571.00) (1,406,399.00) 3,832,024.46 (9,714.53) $ 2,415,910.93 Actual Amounts $ 13,963,653.14 1,400,412.28 1,109,342.33 328,233.97 1,094,301.23 788,203.83 279,365.80 132,312.55 19,095,825.13 2,432,310.94 492,773.44 1,350,698.81 1,588,408.39 11,069,046.50 2,040,491.35 18,973, 729.43 470.25 96,011.88 103,492.85 199,974.98 5,295.00 91,464.75 7,500.00 13,434.90 91,975.85 209,670.50 19,383,374.91 (287,549.78) 4,338,436.88 10,979.50 39,254.57 3,387.50 28,548.99 (4,092,199.68) 328,407.76 40,857.98 3,832,024.46 (9,714.53) $ 3,863,167.91 Variance with Final Budget - Positive (Negative) $ (190,562.86) 29,712.28 516,843.33 33,891.97 114,651.23 (64,796.17) 28,505.80 (28,275.45) 439,970.13 8,240.06 29,226.56 178,264.19 104,341.61 292,719.50 73,334.65 686,126.57 (470.25) (11,215.88) 0.15 (11,685.98) (5,295.00) 6,425.25 713.10 24.15 1,867.50 676,308.09 1,116,278.22 (195,833.12) 3,479.50 (0.43) 3,387.50 28,548.99 491,396.32 330,978.76 1,447,256.98 Z. 1,4gr,Za0.ac City of Cape Girardeau Airport Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 167,000.00 $ 167,000.00 $ 430,094.75 $ 263,094.75 Charges for services 363,920.00 360,920.00 253,799.16 (107,120.84) Miscellaneous 415,331.00 415,331.00 172,746.18 (242,584.82) Investment revenue 1,000.00 1,000.00 1,170.46 170.46 Total revenues 947,251.00 944,251.00 857,810.55 (86,440.45) EXPENDITURES Current: Administrative 1,203,898.00 1,224,056.00 1,194,380.46 29,675.54 Total current 1,203,898.00 1,224,056.00 1,194,380.46 29,675.54 Debt service: Interest 1,752.00 1,752.00 6,964.07 (5,212.07) Principal 15,415.00 38,315.00 38,315.30 (0.30) Total debt service 17,167.00 40,067.00 45,279.37 (5,212.37) Capital outlay: Administrative 34,000.00 149,342.00 112,707.80 36,634.20 Total capital outlay 34,000.00 149,342.00 112,707.80 36,634.20 Total expenditures 1,255,065.00 1,413,465.00 1,352,367.63 61,097.37 Excess (deficiency) of revenues over (under) expenditures (307,814.00) (469,214.00) (494,557.08) (25,343.08) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 523,814.00 958,814.00 694,276.82 (264,537.18) Other non-operating revenue - - 6,008.54 6,008.54 Transfers out (258,000.00) (258,000.00) (254,235.40) 3,764.60 Total other financing sources and uses and special items 265,814.00 700,814.00 446,049.96 (254,764.04) Net change in fund balances (42,000.00) 231,600.00 (48,507.12) (280,107.12) Fund balances — beginning 140,934.04 140,934.04 140,934.04 - Prior period adjustment (6,052.61) (6,052.61) (6,052.61) - Fund balances — ending $ 92,881.43 $ 366,481.43 $ 86,374.31 $ (280,107.12) City of Cape Girardeau Park and Recreation Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ - $ - $ 28.96 $ 28.96 Charges for services 574,243.00 574,243.00 607,771.19 33,528.19 Miscellaneous 14,800.00 14,800.00 15,594.85 794.85 Investment revenue 6,000.00 6,000.00 5,319.27 (680.73) Total revenues 595,043.00 595,043.00 628,714.27 33,671.27 EXPENDITURES Current: Parks and Recreation 1,503,094.00 1,650,789.20 1,624,994.02 25,795.18 Total current 1,503,094.00 1,650,789.20 1,624,994.02 25,795.18 Debt service: Interest 987.27 (987.27) Total debt service - - 987.27 (987.27) Capital outlay: Parks and Recreation 75,955.00 26,666.80 22,827.34 3,839.46 Total capital outlay 75,955.00 26,666.80 22,827.34 3,839.46 Total expenditures 1,579,049.00 1,677,456.00 1,648,808.63 28,647.37 Excess (deficiency) of revenues over (under) expenditures (984,006.00) (1,082,413.00) (1,020,094.36) 62,318.64 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 984,006.00 1,054,006.00 1,017,834.36 (36,171.64) Asset disposition - - 2,000.00 2,000.00 Total other financing sources and uses and special items 984,006.00 1,054,006.00 1,019,834.36 (34,171.64) Net change in fund balances - (28,407.00) (260.00) 28,147.00 Fund balances — beginning 39,728.62 39,728.62 39,728.62 - Fund balances — ending $ 39,728.62 $ 11,321.62 $ 39,468.62 $ 28,147.00 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2009 BUDGETS AND BUDGETARY ACCOUNTING The City adopts annual operating budgets for all funds except Storni Water Projects from Storm Water Sales Tax Fund, Park Improvement Projects from Park / Storm water Sales Tax Fund and Water System Improvement Project Fund which have project length budgets. The City follows these procedures in establishing the budgetary data reflected in the financial statements. 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year ending the following June 30th at the first meeting of June each year. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to July 1, the budget is legally enacted through passage of an ordinance. 4. The City Manager is authorized to transfer budgeted amounts between programs within any department; however, any revisions that alter the total appropriations of any department must be approved by the City Council. Departments may not legally exceed their appropriations without approval from the City Council. Appropriations expire at the end of the year; however, outstanding encumbrances at the end of the year are honored by the City. 5. Formal budgetary integration is employed as a management control device during the year for all funds. 6. Budgets for all funds are adopted on a budgetary basis. 7. If, during the fiscal year, the City Manager certifies there are additional revenues to appropriate, unencumbered appropriation balances within a department, or there is an emergency situation, the City Council may amend the initial budget by ordinance. The initial budget was adopted by the City Council on June 16, 2008 and amended on July 6, 2009. The initial budget and final amended budget are both reflected in the financial statements. For the year ended June 30, 2009, the fund expenditures for Street Improvements and Park Improvements funds exceeded their approved budgets by $9,575 and $278, respectively. City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2009 BUDGETS AND BUDGETARY ACCOUNTING - Continued The Statement of Revenues, Expenditures. and Changes in Fund Balances - Governmental Funds reports revenues and expenditures on the modified accrual basis of accounting in accordance with GAAP. The Statements of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budget Basis) for all govermnental fund types is prepared on a budgetary basis which includes encumbrances as expenditures. The following reconciliation adjusts GAAP basis to budget basis: Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses The individual proprietary fund schedules of comparing budget to actual is reported on a budgetary basis that uses the modified accrual basis of accounting with the exception of encumbrances. Encumbrances are reported as expenses in the year of encumbrance. 79 Park Projects Parks and Transportation From Park Non -major General Airport Recreation Trust III Sales Tax Funds GAAP Basis S(216,389) S(54,936) S 15,346 S (669,853) $16,757,228 S ( 2,954,039) Increase due to: Year-end encumbrances Administrative services 3,000 59,602 - - - 23,783 Development services 470 - - - - 40,765 Parks and recreation 4,836 - 2,700 - - - Puhlic Safety 9,705 - - - 33,260 Public Works 10,940 - - - - Capital outlay - 3,962,196 - 4,557,480 Contingency 248,471 - - - - - Advance from other funds 39,255 - - - - Adjust investments to market - - 413 Asset dispositions 2,000 - Expenses related to pass- through grant - - - - - 250,000 Encumbrance revenue 3.000 4,585 1,781,369 319.677 64,187 4,700 3,962.196 6,687.070 Decrease due to: Year-end encumbrances Administrative services 494 6,997 - - - - Development services 11,633 - - - 25,040 Parks and recreation 12,814 - 17,047 - - 94,703 Public safety 19,318 - - 97,707 Public works 5,705 - - - - Capital outlay - 5,365,778 2,508,818 Contingency 2,000 - - - - - Funds not budgeted annually - - 16,757,228 1,313,268 Encumbrance revenue 50,047 - - 51,684 Asset dispositions - 2,000 - - Pass-through grant revenue - - - - 250,000 Adjust invest to market 10,466 714 1.259 67,948 110,314 62,430 57,758 20,306 5-433,726 16357,228 4,451,534 Budget Basis S MM S (48,507) � _(2601 !2.141.3831 S _ S_(ll8.03) The individual proprietary fund schedules of comparing budget to actual is reported on a budgetary basis that uses the modified accrual basis of accounting with the exception of encumbrances. Encumbrances are reported as expenses in the year of encumbrance. 79 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2009 BUDGETS AND BUDGETARY ACCOUNTING - Continued GAAP Basis Increase due to : Prior year encumbrances Operating expenses Capital Outlays Depreciation Special assessments Interest cost amortized Cost of bond refunding amortization Deferred revenue Issuance cost amortization Amortized bond premium/discount Amounts deferred to be used for future debt service on capital appreciation bonds Construction fund earnings Interest subsidy received Net OPEB obligation Asset dispositions Decrease due to: Year-end encumbrances Operating expenses Capital outlays Landfill closure and maintenance costs Cost of bond refunding amortization Interest paid more than accrual Bond principal paid Amortized Bond premium/discount Capital outlays Adjust investments to market Asset Dispositions Deferred revenues Issuance cost amortization Encumbrance related revenue Adjustment to liability for future landfill postclosure maintenance costs Contributed capital Budget Basis - - 8,056 - 166.120 1.142.210 14.729 4,481,576 2,928,977 183.592 24.856 35.746 S f�52.7651 $ 354 �Z S 1 -- HE - .E Net Income (Loss) Solid Golf Softball Sewer Water Waste Course Complex S 473,616 S 1,680,680 S 266,481 5 (29,483) S 20.535 14,130 13,423 470 400 685 143,405 24.300 5,994 - - 2,093,633 1,369,554 162,068 44,716 11.598 42,282 15,932 - - - 457,187 - - - - 62.321 - - 29,523 22,278 - 181 - 461 - 254.360 - - 604.015 - - - - 54,072 7,996 38,972 9,223 2,928 62.407 87,000 3,755,195 1,602,804 207,965 54,339 15,211 18,140 7,196 455 99 5,694 1,514 68,229 - - - - - 3,444 - 37 - 147 24,097 11,423 463 - - 3,240,504 919,821 55,426 24,193 15,062 - 17,184 - - - 981,979 617,081 45,610 - - 16,932 68,336 14,249 564 261 32.253 77,497 55,660 - - 82 - - 8,056 - 166.120 1.142.210 14.729 4,481,576 2,928,977 183.592 24.856 35.746 S f�52.7651 $ 354 �Z S 1 -- HE - .E City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2009 BUDGETS AND BUDGETARY ACCOUNTING - Continued GAAP Basis Increase due to: Prior year encumbrances Operating expenses Capital Outlays Depreciation Deferred revenues Issuance cost amortization Difference between proceeds from sale of fixed assets and gain or loss Net OPEB Obligation Adjust investments to market Decrease due to: Year-end encumbrances Operating expenses Capital outlays Interest paid more than accrued Adjust investments to market Asset dispositions Amortized Bond premium/discount Principal paid Capital outlays Budget Basis Net Income (Loss) Data Fleet Employee Risk Equipment Processine Manaeement Liam Management Replacement S 86.414 S (33,579) S 516.343 S (13,670) S (796) 85 122 - - - - - - - 19.784 33,915 13,994 - - 223,279 - 3,561 - - - 114 - - 546 - - - 167,770 5.214 35.466 - - - 39,214 53.257 - - 411,379 - 4.257 - - - - - - - 29,611 - - - - 160 1.329 1,255 7270 8,429 15,826 - - - - 17.000 - - - 186 - 9.750 - - 55,000 120,493 - - 764,054 121,822 15.262 7,270 8.429 881,837 S4,416 1_5_0� (22.0991 2 81 00 N Actuarial Valuation nate )-/28/2uu,/ 2/29/2008 2/28/2009 (a) Actuarial Value Of Assets $ 31,670,051 33,474,714 26,852,264 CITY OF CAPE GIRARDEAU, MISSOURI Schedule of Funding Progress (b) Entry Age Actuarial Accrued Liability $ 29,087,073 30,743,406 30,816,797 June 30, 2009 (b -a) Unfunded Accrued Liability (UAL) (2,582,978) (2,731,308) 3,964,533 See Independent Auditors' Report. [(b-a)/c)] UAL as a Percentage of Covered Payroll 29% (c) (a/b) Annual Funded Covered Ratio Payroll 109% $ 13,120,224 109% 13,845,635 87% 13,852,177 See Independent Auditors' Report. [(b-a)/c)] UAL as a Percentage of Covered Payroll 29% SUPPLEMENTAL INFORMATION City of Cape Girardeau Vision 2000 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES Investment revenue $ - $ $ 133.62 $ 133.62 Total revenues - - 133.62 133.62 EXPENDITURES Current: Administrative 1,000.00 1,000.00 26.24 973.76 Total current 1,000.00 1,000.00 26.24 973.76 Total expenditures 1,000.00 1,000.00 26.24 973.76 00 Excess (deficiency) of revenues U' over (under) expenditures (1,000.00) (1,000.00) 107.38 1.107.38 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 1,000.00 1,000.00 26.24 (973.76) Total other financing sources and uses and special items 1,000.00 1,000.00 26.24 (973.76) Net change in fund balances - - 133.62 133.62 Fund balances — beginning 2,777.55 2,777.55 2,777.55 - Fund balances — ending $ 2,777.55 S 2,777.55 $ 2,911.17 $ 133.62 City of Cape Girardeau Convention and Tourism Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 1,669,750.00 $ 1,669,750.00 $ 1,718,951.45 $ 49,201.45 Miscellaneous - - 10,400.00 10,400.00 Investment revenue 28,000.00 28,000.00 34,438.28 6,436.28 Total revenues 1,697,750.00 1,697,750.00 1,763,789.73 66,039.73 EXPENDITURES Current: Administrative 1,732,632.00 1,912,632.00 1,799, 299.13 113,332.87 Total current 1,732,632.00 1,912,632.00 1,799,299.13 113,332.87 00 4�1 Total expenditures 1,732,632.00 1,912,632.00 1,799,299.13 113,332.87 Excess (deficiency) of revenues over (under) expenditures (34,882.00) (214,882.00) (35,509.40) 179,372.60 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out - - (6,500.00) (6,500.00) Total other financing sources and uses and special items - (6,500.00) (6,500.00) Net change in fund balances (34,882.00) (214,882.00) (42,009.40) 172,872.60 Fund balances — beginning 933,916.97 933,916.97 933,916.97 - Fund balances — ending $ 899,034.97 $ 719,034.97 $ 891,907.57 $ 172,872.60 City of Cape Girardeau Downtown Business District Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES Taxes $ 19,925.00 $ 19,925.00 $ 22,976.03 $ 3,051.03 Miscellaneous - - 41.99 41.99 Investment revenue 2,075.00 2,075.00 2,395.99 320.99 Total revenues 22,000.00 22,000.00 25,414.01 3,414.01 EXPENDITURES Current: Development Services 12,000.00 12,000.00 12,293.53 (293.53) Total current 12,000.00 12,000.00 12,293.53 (293.53) Capital outlay: Development Services 10,000.00 10,000.00 - 10,000.00 v, Total capital outlay 10,000.00 10,000.00 - 10,000.00 Total expenditures 22,000.00 22,000.00 12,293.53 9,706.47 Excess (deficiency) of revenues over (under) expenditures - - 13,120.48 13,120.48 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out - (50,000.00) (50,000.00) - Total other financing sources and uses and special items (50,000.00) (50,000.00) - Net change in fund balances - (50,000.00) (36,879.52) 13,120.48 Fund balances — beginning 71,280.84 71,280.84 71,280.84 - Fund balances — ending $ 71,280.84 $ 21,280.84 $ 34,401.32 $ 13,120.48 City of Cape Girardeau Health Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts REVENUES Taxes Licenses & permits Intergovernmental Investment revenue Total revenues EXPENDITURES Current: Public Safety Total current 00 Total expenditures rn Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Total other financing sources and uses and special items Net change in fund balances Fund balances — beginning Fund balances — ending $ 298,916.00 6,000.00 6,300.00 14,650.00 325,866.00 325,866.00 325,866.00 325,866.00 $ 298,910.00 6,000.00 6,300.00 14,650.00 325,866.00 325,866.00 325,866.00 325,866.00 $ 307,713.13 4,647.00 7,544.92 19,536.27 339,441.32 314,716.75 314,716.75 314,716.75 24,724.57 - 24,724.57 407,842.94 407,842.94 407,842.94 $ 407,842.94 $ 407,842.94 $ 432,567.51 Variance with Final Budget - Positive (Negative) $ 8,797.13 (1,353.00) 1,244.92 4,886.27 13,575.32 11,149.25 11,149.25 11,149.25 24,724.57 24,724.57 $ 24,724.57 City of Cape Girardeau Motor Fuel Tax Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 1,425,000.00 $ 1,425,000.00 $ 1,388,366.90 $ (36,633.10) Investment revenue 15,965.00 15,965.00 13,111.18 (2,853.82) Total revenues 11440,965.00 1,440,965.00 1,401,478.08 (39,486.92) EXPENDITURES Current: Public Safety - - 70,462.00 (70,462.00) Total current - - 70,462.00 (70,462.00) Capital outlay: Capital Improvement Projects 130,000.00 130,000.00 - 130,000.00 Total capital outlay 130,000.00 130,000.00 - 130,000.00 00 Total expenditures 130,000.00 130,000.00 70,462.00 59,538.00 Excess (deficiency) of revenues over (under) expenditures 1,310,965.00 1,310,965.00 1,331,016.08 20,051.08 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special assessments 8,935.00 8,935.00 4,614.10 (4,320.90) Transfers out (1,620,000.00) (1,705,000.00) (1,370,000.00) 335,000.00 Total other financing sources and uses and special items (1,611,065.00) (1,696,065.00) (1,365,385.90) 330,679.10 Net change in fund balances (300,100.00) (385,100.00) (34,369.82) 350,730.18 Fund balances — beginning 174,503.13 174,503.13 174,503.13 - Fund balances — ending $(125,596.87) $ (210,596.87) $ 140,133.31 $ 350,730.18 City of Cape Girardeau Capital Improvement Sales Tax -Flood Control Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue $ 2,600.00 $ 2,600.00 $ 2,807.92 $ 207.92 Total revenues 2,600.00 2,600.00 2,807.92 207.92 EXPENDITURES Capital outlay: Capital Improvement Projects - 5,000.00 3,523.24 1,476.76 Total capital outlay 5,000.00 3,523.24 1,476.76 Total expenditures - 5,000.00 3,523.24 1,476.76 00 00 Excess (deficiency) of revenues over (under) expenditures 2,600.00 (2,400.00) (715.32) 1,684.68 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Total other financing sources and uses and special items - - - Net change in fund balances 2,600.00 (2,400.00) (715.32) 1,684.68 Fund balances — beginning 60,586.48 60,586.48 60,586.48 - Fund balances — ending $ 63,186.48 $ 58,186.48 $ 59,871.16 $ 1,684.68 City of Cape Girardeau Capital Improvement Sales Tax -Water System Improvements Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 2,235,000.00 $ 2,235,000.00 $ 2,147,530.91 $ (87,469.09) Investment revenue 96,750.00 98,750.00 132,445.68 33,695.68 Total revenues 2,333,750.00 2,333,750.00 2,279,976.59 (53,773.41) EXPENDITURES Current: Development Services: 36,500.00 36,500.00 33,305.87 3,194.13 Total current 36,500.00 36,500.00 33,305.87 3,194.13 00 Debt service: Administrative charges 67,215.00 67,215.00 57,489.71 9,725.29 Interest 910,475.00 910,475.00 666,089.18 244,385.82 Principal 1,025,000.00 1,025,000.00 1,025,000.00 - Total debt service 2,002,690.00 2,002,690.00 1,748,578.89 254,111.11 Total expenditures 2,039,190.00 2,039,190.00 1,781,884.76 257,305.24 Excess (deficiency) of revenues over(under)expenditures 294,560.00 294,560.00 498,091.83 203,531.83 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 60,000.00 60,000.00 128,403.56 68,403.56 Transfer out (1,604,560.00) (1,604,560.00) (1,604,560.00) - Total other financing sources and uses and special items (1,544,560.00) (1,544,560.00) (1,476,156.44) 68,403.56 Net change in fund balances (1,250,000.00) (1,250,000.00) (978,064.61) 271,935.39 Fund balances — beginning 2,723,138.19 2,723,138.19 2,723,138.19 - Fund balances --ending $ 1,473,138.19 $ 1,473,138.19 $ 1,745,073.58 $ 271,935.39 19 City of Cape Girardeau Transportation Sales Tax Trust Fund Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue $ 38,850.00 $ 38,850.00 $ 26,653.69 $ (12,196.31) Total revenues 38,850.00 38,850.00 26,653.69 (12,196.31) EXPENDITURES Debt service: Administrative charges 2,500.00 2,500.00 418.00 2,082.00 Interest 22,263.00 22,263.00 22,263.00 - Principal 123,000.00 123,000.00 123,000.00 - Total debt service 147,763.00 147,763.00 145,681.00 2,082.00 Capital outlay: Capital Improvement Projects - 170,000.00 166,623.57 3,376.43 Total capital outlay - 170,000.00 166,623.57 3,376.43 Total expenditures 147,763.00 317,763.00 312,304.57 5,458.43 Excess (deficiency) of revenues over (under) expenditures (108,913.00) (278,913.00) (285,650.88) (6,737.88) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special Assessments 97,500.00 97,500.00 112,490.05 14,990.05 Total other financing sources and uses and special items 97,500.00 97,500.00 112,490.05 14,990.05 Net change in fund balances (11,413.00) (181,413.00) (173,160.83) 8,252.17 Fund balances — beginning 384,532.49 384,532.49 384,532.49 - Fund balances — ending $ 373,119.49 $ 203,119.49 $ 211,371.66 $ 8,252.17 I'D City of Cape Girardeau Capital Improvement Sales Tax -Sewer System Improvements Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final REVENUES Actual Amounts Variance with Final Budget - Positive (Negative) Taxes $ 2,235,000.00 $ 2,235,000.00 $ 2,147,571.52 $ (87,428.48) Investment revenue 27,750.00 27,750.00 22,502.43 (5,247.57) Total revenues 2,262,750.00 2,262,750.00 2,170,073.95 (92,676.05) EXPENDITURES Current Development Services 36,500.00 36,500.00 33,305.87 3,194.13 Total current 36,500.00 36,500.00 33,305.87 3,194.13 Total expenditures 36,500.00 36,500.00 33,305.87 3,194.13 Excess (deficiency) of revenues over (under) expenditures 2,226,250.00 2,226,250.00 2,136,768.08 (89,481.92) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out (2,210,261.00) (2,210,261.00) (2,210,261.00) - Total other financing sources and uses and special items (2,210,261.00) (2,210,261.00) (2,210,261.00) Net change in fund balances 15,989.00 15,989.00 (73,492.92) (89,481.92) Fund balances — beginning 812,989.60 812,989.60 812,989.60 Fund balances — ending $ 828,978.60 S 828,978.60 $ 739,496.68 $ (89,481.92) 9 City of Cape Girardeau Transportation Sales Tax Trust Fund II Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue $ 150,290.00 $ 150,290.00 $ 200,016.40 $ 49,726.40 Total revenues 150,290.00 150,290.00 200,016.40 49,726.40 EXPENDITURES Capital outlay: Capital Improvement Projects 250,000.00 500,000.00 330,136.40 169,863.60 Total capital outlay 250,000.00 500,000.00 330,136.40 169,863.60 Total expenditures 250,000.00 500,000.00 330,136.40 169,863.60 Excess (deficiency) of revenues over (under) expenditures (99,710.00) (349,710.00) (130,120.00) 219,590.00 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special assessments 41,195.00 41,195.00 41,789.81 594.81 Total other financing sources and uses and special items 41,195.00 41,195.00 41,789.81 594.81 Net change in fund balances (58,515.00) (308,515.00) (88,330.19) 220,184.81 Fund balances — beginning 1,135, 278.43 1,135,278.43 1,135,278.43 - Fund balances — ending $ 1,076,763.43 $ 826,763.43 $ 1,046,948.24 $ 220,184.81 City of Cape Girardeau Fire Sales Tax Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes S 2,174,000.00 $ 2,174,000.00 $ 2,081,529.12 $ (92,470.88) Investment revenue 3,650.00 3,650.00 2,220.27 (1,429.73) Total revenues 2,177,650.00 2,177,650.00 2,083,749.39 (93,900.61) EXPENDITURES Total expenditures - - Excess (deficiency) of revenues over (under) expenditures 2,177,650.00 2,177,650.00 2,083,749.39 (93,900.61) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfer out (2,166,000.00) (2,166,000.00) (2,093,111.88) 72,888.12 Total other financing sources and uses and special Items (2,166,000.00) (2,166,000.00) (2,093,111.88) 72,888.12 Net change in fund balances 11,650.00 11,650.00 (9,362.49) (21,012.49) Fund balances — beginning 181,422.26 181,422.26 181,422.26 - Fund balances — ending $ 193,072.26 $ 193,072.26 $ 172,059.77 S (21,012.49) City of Cape Girardeau Public Safety Trust Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Capital outlay: Capital Improvement Projects - 220,000.00 202,312.82 Variance with Public Safety Budgeted Amounts 307,300.00 296,417.24 Final Budget - Total capital outlay 301,300.00 527,300.00 498,730.06 Positive Total expenditures Original Final Actual Amounts (Negative) REVENUES Charges for services $ 16,800.00 $ 16,800.00 $ - $ (16,800.00) Investment revenue 37,200.00 37,200.00 69,488.22 32,288.22 Total revenues 54,000.00 54,000.00 69,488.22 15,488.22 EXPENDITURES (1,120,219.00) (1,120,219.00) (1,075,624.47) 44,594.53 Current: 1,045,781.00 1,045,781.00 1,023,887.45 (21,893.55) Public Safety - 4,000.00 16,673.33 (12,673.33) Total current - 4,000.00 16,673.33 (12,673.33) � Debt service: $ 1,333,324.75 $ 1,103,324.75 $ 1,127,864.08 $ 24,539.33 Interest 206,483.00 206,483.00 191,434.95 15,048.05 Principal 551,500.00 551,500.00 551,500.00 Total debt service 757,983.00 757,983.00 742,934.95 15,048.05 Capital outlay: Capital Improvement Projects - 220,000.00 202,312.82 17,687.18 Public Safety 301,300.00 307,300.00 296,417.24 10,882.76 Total capital outlay 301,300.00 527,300.00 498,730.06 28,569.94 Total expenditures 1,059,283.00 1,289,283.00 1,258,338.34 30,944.66 Excess (deficiency) of revenues over (under) expenditures (1,005,283.00) (1,235,283.00) (1,188,850.12) 46,432.88 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 2,166,000.00 2,166,000.00 2,099,511.92 (66,488,08) Transfer out (1,120,219.00) (1,120,219.00) (1,075,624.47) 44,594.53 Total other financing sources and uses and special items 1,045,781.00 1,045,781.00 1,023,887.45 (21,893.55) Net change in fund balances 40,498.00 (189,502.00) (164,962.67) 24,539.33 Fund balances — beginning 1,292,825.75 1,292,826.75 1,292,826.75 - Fund balances — ending $ 1,333,324.75 $ 1,103,324.75 $ 1,127,864.08 $ 24,539.33 City of Cape Girardeau Debt Service Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final REVENUES Actual Amounts Variance with Final Budget - Positive (Negative) Miscellaneous $ 27,281.00 $ 27,281.00 $ 76,174.89 $ 48,893.89 Investment revenue 15,950.00 15,950.00 10,499.60 (5,450.40) Total revenues 43,231.00 43,231.00 86,674.49 43,443.49 EXPENDITURES Debt service: Administrative charges 3,000.00 3,000.00 2,821.50 178.50 Interest 144,827.00 146,827.00 146,310.91 516.09 Principal 185,500.00 236,600.00 236,600.00 - Total debt service 333,327.00 386,427.00 385,732.41 694.59 Total expenditures 333,327.00 386,427.00 385,732.41 694.59 Excess (deficiency) of revenues $ 304,326.45 $ 251,226.45 $ 294,186.39 $ 42,959.94 over(under)expenditures (290,096.00) (343,196.00) (299,057.92) 44,138.08 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 258,000.00 258,000.00 254,235.40 (3,764.60) Special assessments 33,000.00 33,000.00 35,586.46 2,586.46 Total other financing sources and uses and special items 291,000.00 291,000.00 289,821.86 (1,178.14) Net change in fund balances 904.00 (52,196.00) (9,236.06) 42,959.94 Fund balances — beginning 303,422.45 303,422.45 303,422.45 - Fund balances — ending $ 304,326.45 $ 251,226.45 $ 294,186.39 $ 42,959.94 City of Cape Girardeau General Capital Improvements Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ - $ - $ 1,588,243.78 $ 1,588,243.78 Investment revenue 8,000.00 8,000.00 10,390.30 2,390.30 Total revenues 8,000.00 8,000.00 1,598,634.08 1,590,634.08 EXPENDITURES Capital outlay: Capital Improvement Projects - 1,606,000.00 1,592,984.60 13,015.40 Total capital outlay - 1,606,000.00 1,592,984.60 13,015.40 Total expenditures - 1,606,000.00 1,592,984.60 13,015.40 Excess (deficiency) of revenues over (under) expenditures 8,000.00 (1,598,000.00) 5,649.48 1,603,649.48 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Total other financing sources and uses and special items - - Net change in fund balances 8,000.00 (1,598,000.00) 5,649.48 1,603,649.48 Fund balances — beginning 215,964.91 215,964.91 215,964.91 - Fund balances — ending $ 223,964.91 $ (1,382,035.09) $ 221,614.39 $ 1,603,649.48 v City of Cape Girardeau Street Improvements Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue $ 7,580.00 $ 7,580.00 $ 12,550.98 S 4,970.98 Total revenues 7,580.00 7,580.00 12,550.98 4,970.98 EXPENDITURES Capital outlay: Capital Improvement Projects - 75,500.00 75,074.83 425.17 Total capital outlay - 75,500.00 75,074.63 425.17 Total expenditures - 75,500.00 75,074.83 425.17 Excess (deficiency) of revenues over (under) expenditures 7,580.00 (67,920.00) (62,523.85) 5,39b.15 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special Assessments 21,600.00 21,600.00 25,223.85 3,623.85 Transfers out - (65,000.00) (75,000.00) (10,000.00) Total other financing sources and uses and special items 21,600.00 (43,400.00) (49,776.15) (6,376.15) Net change in fund balances 29,180.00 (111,320.00) (112,300.00) (980.00) Fund balances — beginning 112,427.78 112,427.78 112,427.78 - Fund balances — ending $ 141,607.78 $ 1,107.78 $ 127.78 $ (980.00) City of Cape Girardeau Park Improvements Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ - $ $ 410,664.92 $ 410,664.92 Investment revenue - - 5,507.56 5,507.56 Total revenues - - 416,172.48 416,172.48 EXPENDITURES Debt Service Interest - 8.53 (8.53) Total debt service - - 8.53 (8.53) Capital Outlay O° Capital Improvement Projects 520,000.00 520,269.70 (269.70) Total capital outlay - 520,000.00 520,269.70 (269.70) Total expenditures 520,000.00 520,278.23 (278.23) Excess (deficiency) of revenues over(under)expenditures - (520,000.00) (104,105.75) 415,894.25 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Total other financing sources and uses and special items - - Net change in fund balances - (520,000.00) (104,105.75) 415,894.25 Fund balances — beginning 183,750.53 183,750.53 183,750.53 - Prior period adjustment (0.01) (0.01) (0.01) - Fund balances — ending $ 183,750.52 $ (336,249.48) $ 79,644.77 $ 415,894.25 go City of Cape Girardeau FAU Grant Projects Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ - $ - $ 40,000.00 $ 40,000.00 Investment revenue 6,000.00 6,000.00 14,774.50 8,774.50 Total revenues 6,000.00 6,000.00 54,774.50 48,774.50 EXPENDITURES Capital outlay: Capital Improvement Projects - 72,500.00 70,002.17 2,497.83 Total capital outlay - 72,500.00 70,002.17 2,497.83 Total expenditures - 72,500.00 70,002.17 2,497.83 Excess (deficiency) of revenues over(under)expenditures 6,000.00 (66,500.00) (15,227.67) 51,272.33 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in - 150,000.00 150,000.00 - Total other financing sources and uses and special items - 150,000.00 150,000.00 - Net change in fund balances 6,000.00 83,500.00 134,772.33 51,272.33 Fund balances — beginning 206,798.71 206,798.71 206,798.71 - Prior period adjustment 163,322.91 163,322.91 163,322.91 - Fund balances — ending $ 376,121.62 $ 453,621.62 $ 504,893.95 $ 51,272.33 City of Cape Girardeau Community Development Block Grant Projects Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES Intergovernmental $ - $ - $ 112,529.53 $ 112,529.53 Investment revenue - - 2,130.25 2,130.25 Total revenues - - 114,659.78 114,659.78 EXPENDITURES Current: Development Services 50,000.00 46,269.48 3,730.52 Total current - 50,000.00 46,269.48 3,730.52 Debt service: Interest - 2,043.51 (2,043.51) C) Total debt service - - 2,043.51 (2,043.51) Capital outlay: Capital Improvement Projects - 300,000.00 301,019.93 (1,019.93) Total capital outlay - 300,000.00 301,019.93 (1,019.93) Total expenditures - 350,000.00 349,332.92 667.08 Excess (deficiency) of revenues over (under) expenditures - (350,000.00) (234,673.14) 115,326.86 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In - 215,000.00 99,763.68 (115,236.32) Bond proceeds - - 122,842.75 122,842.75 Transfers out - (5,000.00) (1,097.00) 3,903.00 Total other financing sources and uses and special items - 210,000.00 221,509.43 11,509.43 Net change in fund balances - (140,000.00) (13,163.71) 126,836.29 Fund balances — beginning 51,623.35 51,623.35 51,623.35 - Fund balances -- ending $ 51,623.35 $(88,376.65) $ 38,459.64 $ 126,836.29 0 City of Cape Girardeau Transportation Sales Tax Trust Fund III Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts REVENUES Variance with Final Budget - Positive (Negative) Taxes $ 4,343,000.00 $ 4,343,000.00 $ 4,165,416.01 $ (177,583.99) Intergovernmental 365,000.00 365,000.00 905.55 (364,094.45) Investment revenue 127,300.00 127,300.00 292,808.50 165,508.50 Total revenues 4,835,300.00 4,835,300.00 4,459,130.06 (376,169.94) EXPENDITURES Current: Development Services: 72,000.00 72,000.00 63,630.16 8,369.84 Total current 72,000.00 72,000.00 63,630.16 8,369.84 Capital outlay: Capital Improvement Projects 4,795,000.00 9,750,000.00 6,861,883.28 2,888,116.72 Total capital outlay 4,795,000.00 9,750,000.00 6,861,883.28 2,888,116.72 Total expenditures 4,867,000.00 9,822,000.00 6,925,513.44 2,896,486.56 Excess (deficiency) of revenues over (under) expenditures (31,700.00) (4,986,700.00) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 650,000.00 650,000.00 Total other financing sources and uses and special items 650,000.00 650,000.00 Net change in fund balances 618,300.00 (4,336,700.00) Fund balances — beginning Prior period adjustment Fund balances — ending 3,076,880.41 3,076,880.41 (7,400.00) (7,400.00) $ 3,687,780.41 $ (1,267,219.59) (2,466,383.38) 325,000.00 325,000.00 (2,141,383.38) 3,076,880.41 (7,400.00) $ 928,097.03 2,520,316.62 (325,000.00) (325,000.00) 2,195,316.62 $ 2,195,316.62 City of Cape Girardeau Park Storm Water Sales Tax Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 681,000.00 $ 681,000.00 $ 711,393.28 $ 30,393.28 Investment revenue - - 2,631.62 2,631.62 Total revenues 681,000.00 681,000.00 714,024.90 33,024.90 EXPENDITURES Current: Parks and Recreation - 1,000.00 - 1,000.00 Total current - 1,000.00 - 1,000.00 oN Capital outlay: Parks and Recreation - 17,500.00 - 17,500.00 Total capital outlay - 17,500.00 17,500.00 Total expenditures - 18,500.00 - 18,500.00 Excess (deficiency) of revenues over(under)expenditures 681,000.00 662,500.00 714,024.90 51,524.90 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfer out (664,363.00) (664,363.00) (582,592.58) 81,770.42 Total other financing sources and uses and special items (664,363.00) (664,363.00) (582,592.58) 81,770.42 Net change in fund balances 16,637.00 (1,863.00) 131,432.32 133,295.32 Fund balances — beginning - - - Fund balances — ending $ 16,637.00 $ (1,863.00) $ 131,432.32 $ 133,295.32 O w City of Cape Girardeau Park Storm Water Sales Tax -Capital Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 REVENUES Taxes Investment revenue Total revenues EXPENDITURES Capital outlay: Parks and Recreation Total capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Interest and other charges Transfer out Total other financing sources and uses and special items Net change in fund balances Fund balances — beginning Fund balances — ending Budgeted Amounts Original Final $ 2,316,000.00 2,316,000.00 2,316,000.00 (2,043,000.00) (2,043,000.00) 273,000.00 $ 273,000.00 $ 2,316,000.00 1,299,000.00 1,299,000.00 1,299,000.00 1,017,000.00 (5,000.00) (2,043,000.00) (2,048,000.00) (1,031,000.00) $ (1,031,000.00) Actual Amounts $ 2,134,179.87 6,924.85 2,141,104.72 1,289,145.53 1,289,145.53 1,289,145.53 851,959.19 835,831.61 (4,026.23) (863,465.42) (31,660.04) 820,299.15 Variance with Final Budget - Positive (Negative) $ (181,820.13) 6,924.85 (174,895.28) 9,854.47 (165,040.81) 835, 831.61 973.77 1,179, 534.58 2,016,339.96 1,851,299.15 0 4 - City of Cape Girardeau Housing Development Grants Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES Intergovernmental $ 250,000.00 $ 250,000.00 $ 170,446.86 $ (79,553.14) Investment revenue - - 179.90 179.90 Total revenues 250,000.00 250,000.00 170,626.76 (79,373.24) EXPENDITURES Current: Development Services 250,000.00 250,000.00 177,991.61 72,008.39 Total current 250,000.00 250,000.00 177,991.61 72,008.39 Debt service: Interest - - 3,809.19 (3,809.19) Total debt service - - 3,809.19 (3,809.19) Total expenditures 250,000.00 250,000.00 181,800.80 68,199.20 Excess (deficiency) of revenues over (under) expenditures - - (11,174.04) (11,174.04) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 25,000.00 30,000.00 15,812.72 (14,187.28) Total other financing sources and uses and special items 25,000.00 30,000.00 15,812.72 (14,187.28) Net change in fund balances 25,000.00 30,000.00 4,638.68 (25,361.32) Fund balances — beginning 3,379.96 3,379.96 3,379.96 - Fund balances — ending $ 28,379.96 $ 33,379.96 $ 8,018.64 $ (25,361.32) O �s REVENUES Intergovernmental Residential charges Commercial charges Other fees and charges Miscellaneous Investment revenue Total revenues EXPENDITURES Current: Contractual services General operating expenses Internal service expense Material and supplies Personnel services Special projects expense Total current Debt service: Administrative charges Interest Principal Total debt service Capital outlay: Capital Improvement Projects Equipment Other Capital Expenditures Total capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures City of Cape Girardeau Sewer Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Connection fees Special assessments Asset disposition Other non-operating revenue Transfers out Total other financing sources and uses and special items Net change in fund balances Fund balances — beginning Fund balances — ending (2,359,740.00) (3,476,027.00) (2,822,048.48) Variance with Budgeted Amounts 2,372,404.00 2,382,640.35 Final Budget - 100,000.00 100,000.00 68,140.00 Positive Original Final Actual Amounts (Negative) 10,000.00 $ - $ $ 122,154.98 $ 122,154.98 1,785,000.00 1,785,000.00 1,789,560.27 4,560.27 1,134,000.00 1,134,000.00 1,108,402.39 (25,597.61) 41,000.00 41,000.00 42,669.17 1,669.17 12,500.00 12,500.00 11,344.80 (1,155.20) 50,800.00 50,800.00 506,051.99 455,251.99 3,023,300.00 3,023, 300.00 3,580,183.60 556,883.60 215,956.00 247,038.21 252,967.10 (5,928.89) 169,000,00 157,534.54 50,748.88 106,785.66 130,225.00 150,225.00 180,879.10 (30,654.10) 411,915.00 402,798.25 415,678.25 (12,880.00) 1,512,555.00 1,564,355.00 1,579,088.29 (14,733.29) 83, 643.00 204,143.00 177, 279, 59 26, 863.41 2,523,294.00 2,726,094.00 2,656,641.21 69,452.79 119,790.00 119,790.00 113,365,57 6,424.43 332,682.00 (452,318.00) (448,366.38) (3,951.62) 2,097,274.00 3,240,504.00 3,240,503.98 0.02 2,549,746.00 2,907,976.00 2,905,503.17 2,472.83 - 360,000.00 410,808.07 (50,808.07) 60,000.00 322,847.00 315,597.09 7,249.91 250,000.00 182,410.00 113,682.54 68,727.46 310,000.00 865,257.00 840,087.70 25,169.30 5,383,040.00 6,499,327.00 6,402,232.08 97,094.92 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Connection fees Special assessments Asset disposition Other non-operating revenue Transfers out Total other financing sources and uses and special items Net change in fund balances Fund balances — beginning Fund balances — ending (2,359,740.00) (3,476,027.00) (2,822,048.48) 653,978.52 2,372,404.00 2,372,404.00 2,382,640.35 10,236.35 100,000.00 100,000.00 68,140.00 (31,860.00) 6,250.00 6,250.00 42,281.88 36,031.88 10,000.00 10,000.00 81,047.00 71,047.00 - - 174.21 174.21 _ (5,000.00) (5,000.00) 2,488,654.00 2,488,654.00 2,569,283.44 80,629.44 128,914.00 (987,373.00) (252,765.04) 734,607.96 3,064,277.89 3,064,277.89 3,084,277.89 - $ 3,193,191.89 $ 2,076,904.89 $ 2,811,512.85 $ 734,607.96 City of Cape Girardeau Water Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final REVENUES Actual Amounts Variance with Final Budget - Positive (Negative) Intergovernmental $ $ - $ 31,855.68 $ 31,855.68 Residential charges 3,335,250.00 3,335,250.00 3,278,170.87 (57,079.13) Commercial charges 2,359,500.00 2,359,500.00 2,280,538.04 (78,961.96) Other fees and charges 196,000.00 196,000.00 169,260.45 (26,739.55) Miscellaneous 16,200.00 16,200.00 16,884.38 684.38 Investment revenue 170,700.00 170,700.00 259,144.74 88,444.74 Total revenues 6,077,650.00 6,077,650.00 6,035,854.16 (41,795.84) EXPENDITURES Current Contractual services 2,687,071.00 2,699,215.29 2,524,768.04 174,447.25 General operating expenses 205,300.00 205,300.00 175,139.56 30,160.44 �. Internal service expense 99,313.00 99,313.00 106,498.33 (7,185.33) Material and supplies 1,070,666.00 1,065,086.35 1,047,433.64 17,652.71 rn Personnel services 133,735.00 133,736.00 129,681.38 4,053.62 Special projects expense 115,000.00 115,000.00 134,081.70 (19,081.70) Total current 4,311,085.00 4,317,649.64 4,117,602.65 200,046.99 Debt service: $ 5,334,220.94 $ 5,334,220.94 $ 5,651,507.97 $ 317,287.03 Administrative charges 700.00 700.00 470.25 229.75 Interest 214,724.00 214,724.00 215,124.20 (400.20) Principal 919,821.00 919,821.00 919,820.72 0.28 Total debt service 1,135,245.00 1,135,245.00 1,135,415.17 (170.17) Capital outlay: Capital Improvement Projects 288,750.00 288,750.00 255,739.11 33,010.89 Equipment 467,100.00 460,535.36 385,776.08 74,759.28 Other Capital Expenditures 39,000.00 39,000.00 17,246.40 21,753.60 Total capital outlay 794,850.00 788,285.36 658,761.59 129,523,77 Total expenditures 6,241,180.00 6,241,180.00 5,911,779.41 329,400.59 Excess (deficiency) of revenues over (under) expenditures (163,530.00) (163,530.00) 124,074.75 287,604.75 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 120,000,00 120,000.00 128,000.00 8,000.00 Special assessments 2,300.00 2,300.00 15,932.28 13,632.28 Asset disposition 78,450.00 78,450.00 87,000.00 8,550.00 Transfers out - - (500.00) (500.00) Total other financing sources and uses and special items 200,750.00 200,750.00 230,432.28 29,682.28 Net change in fund balances 37,220.00 37,220.00 354,507.03 317,287.03 Fund balances — beginning 5,297,000.94 5,297,000.94 5,297,000.94 - Fund balances — ending $ 5,334,220.94 $ 5,334,220.94 $ 5,651,507.97 $ 317,287.03 City of Cape Girardeau Solid Waste Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final REVENUES Actual Amounts Variance with Final Budget - Positive (Negative) Intergovernmental $ 17,000.00 $ 17,000.00 $ 25,994.57 $ 8,994.57 Residential charges 2,074,150.00 2,074,150.00 2,090,574.55 16,424.55 Commercial charges 29,000.00 29,000.00 30,748.78 1,748.78 Transfer station charges 992,800.00 992,800.00 1,056,265.30 63,465.30 Other fees and charges 86,000.00 86,000.00 86,542.39 542.39 Miscellaneous 48,000.00 48,000.00 33,708.88 (14,291.12) Investment revenue 44,000.00 44,000.00 59,749.58 15,749.58 Total revenues 3,290,950.00 3,290,950.00 3,383,584.05 92,634.05 EXPENDITURES Current: —• Contractual services 1,203,648.00 1,244,499.30 1,258,358.84 (13,859.54) C) General operating expenses 43,080.00 45,251.50 40,764.68 4,486.82 Internal service expense 205,032.00 205,032,00 196,109.60 8,922.34 Material and supplies 163,361.00 158,354.40 122,414.90 35,939.50 Personnel services 1,282,850.00 1,282,850.00 1,233,138.76 49,711.24 Special projects expense 98,500.00 95,198.80 100,425.68 (5,226.88) Total current 2,996,471.00 3,031,186.00 2,951,212.52 79,973.48 Debt service: Administrative charges 700.00 700.00 - 700.00 Interest 37,335.00 37,335.00 36,270.92 1,064.08 Principal 55,425.00 55,425.00 55,425.30 (0.30) Total debt service 93,460.00 93,460.00 91,696.22 1,763.78 Capital outlay: Equipment 31,710.00 36,995.00 39,616.39 (2,621.39) Total capital outlay 31,710.00 36,995.00 39,616.39 (2,621.39) Total expenditures 3,121,641.00 3,161,641.00 3,082,525.13 79,115.87 Excess (deficiency) of revenues over (under) expenditures 169,309.00 129,309.00 301,058.92 171,749.92 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Asset disposition 2,800.00 2,800.00 - (2,800.00) Transfers out - - (10,205.00) (10,205.00) Total other financing sources and uses and special items 2,800.00 2,800.00 (10,205.00) (13,005.00) Net change in fund balances 172,109.00 132,109.00 290,853.92 158,744.92 Fund balances — beginning 890,243.09 890,243.09 890,243.09 - Fund balances — ending $ 1,062,352.09 $ 1,022,352.09 $ 1,181,097.01 $ 158,744.92 0 00 EXPENDITURES Current: Contractual services City of Cape Girardeau 19,963.00 16,895.77 3,067.23 Golf Course 7,400.00 7,400.00 8,601.65 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 74,372.00 74,372.00 For the Year Ended June 30, 2009 36,478.15 Material and supplies 76,184.00 76,490.00 50,080.82 Variance with Personnel services Budgeted Amounts 334,510.00 Final Budget - (10,374.97) Special projects expense 9,700.00 Positive 4,538.59 Original Final Actual Amounts (Negative) REVENUES 462,895.65 59,233.35 Debt service: User fees $ 402,646.00 $ 402,646.00 $ 295,596.40 $ (107,049.60) Concession revenues 30,000.00 30,000.00 24,976.17 (5,023.83) Investment revenue 1,000.00 1,000.00 2,551.47 1,551.47 Total revenues 433,646.00 433,646.00 323,124.04 (110,521.96) EXPENDITURES Current: Contractual services 19,963.00 19,963.00 16,895.77 3,067.23 General operating expenses 7,400.00 7,400.00 8,601.65 (1,201.65) Internal service expense 74,372.00 74,372.00 37,893.85 36,478.15 Material and supplies 76,184.00 76,490.00 50,080.82 26,409.18 Personnel services 334,510.00 334,510.00 344,884,97 (10,374.97) Special projects expense 9,700.00 9,394.00 4,538.59 4,855.41 Total current 522,129.00 522,129.00 462,895.65 59,233.35 Debt service: Interest 13,074.00 13,074.00 13,556.27 (482.27) Principal 24,193.00 24,193.00 24,192.72 0.28 Total debt service 37,267.00 37,267.00 37,748.99 (481.99) Total expenditures 559,396.00 559,396.00 500,644.64 58,751.36 Excess (deficiency) of revenues over(under)expenditures (125,750.00) (125,750.00) (177,520.60) (51,770.60) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 125,750.00 125,750.00 128,310.60 2,560.60 Asset disposition - - 49,210.00 49,210.00 Total other financing sources and uses and special items 125,750.00 125,750.00 177,520.60 51,770.60 Net change in fund balances - - - - Fund balances -- beginning 5,212.01 5,212.01 5,212.01 - Fund balances — ending $ 5,212.01 $ 5,212.01 $ 5,212.01 $ - 0 City of Cape Girardeau Softball Complex Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES Intergovernmental $ - $ - $ 8.82 $ 8.82 User fees 65,300.00 65,300.00 82,620.31 17,320.31 Concession revenues 35,500.00 35,500.00 52,310.08 16,810.08 Miscellaneous 5,500.00 5,500.00 7,679.69 2,179.69 Investment revenue 1,600.00 1,600.00 1,090.82 (509.18) Total revenues 107,900.00 107,900.00 143,709.72 35,809.72 EXPENDITURES Current: Contractual services 20,640.00 18,842.12 18,512.08 330.04 General operating expenses 3,500.00 1,940.00 507.51 1,432.49 Internal service expense 27,436.00 27,436.00 24,210.46 3,225.54 Material and supplies 65,490.00 76,507.88 75,527.04 980.84 Personnel services 367,528.00 379,103.00 369,142.14 9,960.86 Special projects expense 5,800.00 5,000.00 5,146.52 (146.52) Total current 490,394.00 508,829.00 493,045.75 15,783.25 Debt service: Interest 9,314.00 9,314.00 9,500.00 (186.00) Principal 15,062.00 15,062.00 15,061.85 0.15 Total debt service 24,376.00 24,376.00 24,561.85 (185.85) Capital outlay: Equipment 6,860.00 - - Total capital outlay 6,860.00 - - - Total expenditures 521,630.00 533,205.00 517,507.60 15,597.40 Excess (deficiency) of revenues over (under) expenditures (413,730.00) (425,305.00) (373,897.88) 51,407.12 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 413,730.00 413,730.00 373,160.88 (40,569.12) Asset disposition - - 737.00 737.00 Total other financing sources and uses and special items 413,730.00 413,730.00 373,897.88 (39,832.12) Net change in fund balances - (11,575.00) - 11,575.00 Fund balances — beginning 5,000.00 5,000.00 5,000.00 - Fundbalances— ending $ 5,000.00 $ (6,575.00) $ 5,000.00 $ 11,575.00 0 City of Cape Girardeau Management Information Systems Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES 133,000.00 116,679.58 120,493.00 (3.813.42) Internal charges $ 367,000.00 $ 367,000.00 $ 367,000.00 $ Investment revenue 2,000.00 2,000.00 5,538.31 3,538.31 Total revenues 369,000.00 369,000.00 372,538.31 3,538.31 EXPENDITURES 327.00 (9,673.00) 3,805.94 13,478.94 Current: Contractual services 98,677.00 98,677.00 103,756.27 (5,079.27) General operating expenses 4,045.00 4,045.00 899.31 3,145.69 Material and supplies 9,300.00 35,620.42 23,841.01 11,779.41 Personnel services 123,651.00 123,651.00 119,742.78 3,908.22 Total current 235,673.00 261,993.42 248,239.37 13,754.05 Capital outlay: Equipment 133,000.00 116,679.58 120,493.00 (3.813.42) Total capital outlay 133,000.00 116,679.58 120,493.00 (3,813.42) Total expenditures 368,673.00 378,673.00 368,732.37 9,940.63 Excess (deficiency) of revenues over (under) expenditures 327.00 (9,673.00) 3,805.94 13,478.94 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Total other financing sources and uses and special items - - - - Net change in fund balances 327.00 (9,673.00) 3,805.94 13,478.94 Fund balances — beginning 152,687.55 152,687.55 152,687.55 - Fund balances — ending $ 153,014.55 $ 143,014.55 $ 156,493.49 $ 13,478.94 City of Cape Girardeau Fleet Management Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Debt service: Interest 6,728.00 6,728.00 2,937.67 Variance with Principal Budgeted Amounts 9,750.00 9,750.00 Final Budget - Total debt service 16,478.00 16,478.00 12,687.67 Positive Capital outlay: Original Final Actual Amounts (Negative) REVENUES 5,000.00 - - - Intergovernmental $ $ $ 92.85 $ 92.85 Internal charges 1,130,000.00 1,130,000.00 1,152,620.87 22,620.87 Investment revenue 18,272.00 18,272.00 11,859.93 (6,412.07) Total revenues 1,148,272.00 1,148,272.00 1,164,573.65 16,301.65 EXPENDITURES Current: - - 500.00 500,00 Contractual services 195,219.00 266,123.86 232,763.09 33,360.77 General operating expenses 4,850.00 3,150.00 1,633.22 1,516.78 Internal service expense 2,681.00 2,681.00 2,681.00 - Material and supplies 258,345.00 295,440.14 288,338.93 7,101.21 Personnel services 649,240.00 622,940.00 617,932.91 5,007.09 Total current 1,110,335.00 1,190,335.00 1,143,349.15 46,985.85 Debt service: Interest 6,728.00 6,728.00 2,937.67 3,790.33 Principal 9,750.00 9,750.00 9,750.00 - Total debt service 16,478.00 16,478.00 12,687.67 3,790.33 Capital outlay: Equipment 5,000.00 - - - Total capital outlay 5,000.00 - - Total expenditures 1,131,813.00 1,206,813.00 1,156,036.82 50,776.18 Excess (deficiency) of revenues over (under) expenditures 16,459.00 (58,541.00) 8,536.83 67,077.83 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in - - 500.00 500,00 Asset disposition - 3,560.30 3,560.30 Other non-operating revenue 6,817.72 6,817.72 Transfers out (16,272.00) (16,272.00) (14,999.02) 1,272.98 Total other financing sources and uses and special items (16,272.00) (16,272.00) (4,121.00) 12,151.00 Net change in fund balances 187.00 (74,813.00) 4,415.83 79,228.83 Fund balances — beginning 195,639.12 195,639.12 195,639.12 - Fund balances — ending $ 195,826.12 $ 120,826.12 $ 200,054.95 $ 79,228.83 City of Cape Girardeau Fringe Benefits Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES Internal charges $ 3,640,000.00 $ 3,640,000.00 $ 2,733,411.42 $ (906,588.58) Miscellaneous - - 1,893.06 1,893.06 Investment revenue 4,000.00 4,000.00 29,994.95 25,994.95 Total revenues 3,644,000.00 3,644,000.00 2,765,299.43 (878,700.57) EXPENDITURES Current: Contractual services 3,640,000.00 3,640,000.00 2,254,041.56 1,385,958.44 General Operating - 2,185.07 (2,185.07) Total current 3,640,000.00 3,640,000.00 2,256,226.63 1,383,773.37 Total expenditures 3,640,000.00 3,640,000.00 2,256,226.63 1,383,773.37 Excess (deficiency) of revenues over (under) expenditures 4,000.00 4,000.00 509,072.80 505,072.80 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Total other financing sources and uses and special items - - - - Net change in fund balances 4,000.00 4,000.00 509,072.80 505,072.80 Fund balances — beginning 157,132.84 157,132.84 157,132.84 - Fundbalances— ending $ 161,132.84 $ 161,132.84 $ 666,205.64 S 505,072.80 REVENUES Internal charges Investment revenue Total revenues EXPENDITURES Current: Contractual services General operating expenses Material and supplies Total current Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances — beginning Fund balances — ending City of Cape Girardeau Risk Management Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final $ 522,457.00 46,500.00 568,957.00 541,457.00 25,000.00 2,500.00 568, 957.00 568,957.00 1,107,448.06 $ 1,107,448.06 $ 522,457.00 46,500.00 568, 957.00 891,457.00 25,000.00 2,500.00 918,957.00 918,957.00 (350,000.00) (350,000.00) 1 1n7 eea na Actual Amounts $ 525,543.69 60,426.18 585,969.87 578,692.61 29,376.37 608, 068.98 608,068.98 (22,099.11) (22,099.11) 1,107,448.06 $ 1,085,348.95 Variance with Final Budget - Positive (Negative) $ 3,086.69 13,926.18 17,012.87 312,764.39 (4,376.37) 327,900.89 327,900.89 $ 327,900.89 City of Cape Girardeau Equipment Replacement Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2009 Budgeted Amounts Original Final REVENUES Actual Amounts Variance with Final Budget - Positive (Negative) Internal charges $ 244,384.00 $ 244,384.00 $ 212,214.40 $ (32,169.60) Investment revenue 60,000.00 60,000.00 80,461.91 20,461.91 Total revenues 304,384.00 304,384.00 292,676.31 (11,707.69) EXPENDITURES Current: Material and supplies - 11.00 11.00 Total current - 11.00 11.00 Debt service: Interest - 7,750.00 7,750.00 - Principal - 55,000.00 55,000.00 Total debt service - 62,750.00 62,750.00 - Capital outlay: Equipment 526,828.00 801,817.00 790, 881.04 10, 935.96 Total capital outlay 526,828.00 801,817.00 790,881.04 10,935.96 Total expenditures 526,828.00 864,578.00 853,642.04 10,935.96 Excess (deficiency) of revenues over (under) expenditures (222,444.00) (560,194.00) (560,965.73) (771.73) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in - - 7,205.00 7,205.00 Asset disposition 12,000.00 12,000.00 167,769.95 155,769.95 Transfers out (85,263.00) (85,263.00) (85,263.00) - Total other financing sources and uses and special items (73,263.00) (73,263.00) 89,711.95 162,974.95 Net change in fund balances (295,707.00) (633,457.00) (471,253.78) 162,203.22 Fund balances — beginning 1,643,330.71 1,643,330.71 1,643,330.71 - Fund balances — ending $ 1,347,623.71 $ 1,009,873.71 $ 1,172,076.93 $ 162,203.22 ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants 16 So. Silver Springs Road 4018 Sycamore 105 So. Hope Cairo, Illinois 62914 Cape Girardeau, Missouri 63703 Jackson, Missouri 63755 Telephone (618) 734-3300 Telephone (573) 334-7971 Telephone (573) 243-3991 Facsimile (618) 734-3303 Facsimile (573) 334-8875 Facsimile (573) 243-3186 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A- 133 Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri Compliance We have audited the compliance of City of Cape Girardeau, Missouri, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2009. City of Cape Girardeau, Missouri's major federal programs are identified in the summary of auditors' results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts; and grants applicable to each of its major federal programs is the responsibility of City of Cape Girardeau, Missouri's management. Our responsibility is to express an opinion on City of Cape Girardeau, Missouri's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Cape Girardeau, Missouri's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of City of Cape Girardeau, Missouri's compliance with those requirements. In our opinion. City of Cape Girardeau.. Missouri complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2009. 115 Internal Control Over Compliance The management of City of Cape Girardeau, Missouri is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered City of Cape Girardeau, Missouri's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Cape Girardeau, Missouri's internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the entity's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified a certain deficiency in internal control over compliance that we consider to be a significant deficiency. A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 09-1 to be a significant deficiency. A material weakness is a significant deficiency, or combination of significant deficiencies. that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. The City of Cape Girardeau, Missouri's response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit the City of Cape Girardeau, Missouri's response and, accordingly, we express no opinion on it. This report is intended solely for the information and use of the Honorable Mayor, Members of the City Council, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. BEUSSINK, HEY, ROE, SEABAUGI-i & STRODER, L.L.C. Cape Girardeau, Missouri December 17, 2009 116 BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants 16 So. Silver Springs Road 4418 Sycamore 105 So. Hope Cairo, Illinois 62914 Cape Girardeau, Missouri 63703 Jackson, Missouri 63755 Telephone (618) 734-3300 Telephone (573) 334-7971 Telephone (573) 243-3991 Facsimile (618) 734-3303 Facsimile (573) 334-8875 Facsimile (573) 243-3186 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL, STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERN!LIEN7AUDITING STANDARDS Honorable Mayor and Members of the City Council City of Cape Girardeau. Missouri We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Cape Girardeau, Missouri as of and for the year ended June 30, 2009, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 17, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of Cape Girardeau, Missouri's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Cape Girardeau, Missouri's internal control over financial reporting. Accordingly. we do not express an opinion on the effectiveness of the City of Cape Girardeau. Missouri's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City of Cape Girardeau, Missouri's ability to initiate, authorize, record, process. or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City of Cape Girardeau, Missouri's financial statements that is more than inconsequential will not be prevented or detected by the City of Cape Girardeau, Missouri's internal control. 117 A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City of Cape Girardeau, Missouri's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Cape Girardeau, Missouri's financial statements are free of material misstatement. we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Honorable Mayor, Members of the City Council, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Cape Girardeau, Missouri December 17, 2009 118 City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2009 Federal Grantor/Pass-Through Grantor Program Title U.S. DEPARTMENT OF DEFENSE: Loan of DOD Property (non-cash) U.S. DEPARTMENT OF HOUSING_ AND URBAN DEVELOPMENT: Passed Through Missouri Department of Economic Development - Community Development Block Grants/ State's Program and Non -Entitlement Grants in Hawaii (1) Passed Through Missouri Department of Social Services - Emergency Shelter Grants Program Passed Through Missouri Housing Development Commission - Home Investment Partnerships Program TOTAL U -S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT U.S. DEPARTMENT OF THE INTERIOR: Save America's Treasurers Federal CFDA Program Number Number 12. N/A 14.228 2004 -ND -05 2002 -ND -04 2007 -ND -801 2007 -DT -803 2008 -DN -02 14.231 ERO1640905 14-239 M -07 -SG -29-0100 15.929 N/A Disbursements $ 100,000 $ 42,734 36,950 250,000 75,000 14 $ 404,698 Public Safety Partnership and Community 30,566 Policing Grants 102,558 Passed Through Missouri Department of $ 537,822 $ 1,296 U.S. DEPARTMENT OF JUSTICE: Passed Through the City of Poplar Bluff, Missouri - Passed through the Southeast Missouri Drug Task Force - Public Safety Partnership and Community Policing Grants 16.710 N/A $ Passed Through Missouri Department of Public Safety - Violence Against Women Formula Grant 16.588 2008-VAWA-0008 $ 14,725 2007-V AWA -0004 17,117 Bulletproof Vest Partnership Program 16.607 N/A Edward Byrne Memorial Justice Assistance Grant 16.738 2007 -DJ -BX -1432 $ 1,852 Passed Through Missouri Department of Public Safety - Edw•ard Byrne Memorial Justice 958 31,842 1,459 Assistance Grant 16.738 2007-LBGJ-139 6,848 $ 8,700 TOTAL U.S. DEPARTMENT OF JUSTICE $ 42,959 The Accompanying Notes to Schedule of Expenditures of federal Awards Are an Integral Pan of This Report. 119 City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2009 Federal Grantor/Pass-Through Grantor Proglram Title U.S. DEPARTMENT OF TRANSPORTATION: Passed Through Missouri Department of Transportation - Airport Improvement Program Highway Planning and Construction (1) Highway Safety Cluster: State and Community Highway Safety Alcohol Impaired Driving Countermeasures Incentive Grants I Alcohol Open Container Requirements Federal CFDA Program Number Number Disbursements 20.106 AIRE 055-77A S 68,860 08-77A-1 90,076 S 158,936 20.205 DP -1503(002) S 906 DP -1503(003) 35,959 ER -M008(002) 26,699 STP -1500(014) 5,685 STP -1500(015) 124,775 STP -1500(016) 40,000 SRTS-NI-H280(501) 2,162 SRTS-INF-H110(002) 67,952 S 304,138 20-600 20-601 20.607 09 -SA -09-01 08 -SA -09-02 09 -SA -09-02 08 -SA -09-03 09 -PT -02-29 08 -PT -02-24 LKK058 LKK047 08-K8-03-16 08-K8-03-18 08-K8-03-17 08-K8-03-19 LKK033 LKK040 TOTAL U.S. DEPARTMENT OF TRANSPORTATION ENVIRONMENTAL PROTECTION AGENCY: Passed Through Missouri Department of Natural Resources - Capitalization Grants for Clean Water State Revolving Funds 66.458 C295229 Capitalization Grants for Drinking Water State Revolving Funds 66.468 DW291010 TOTAL ENVIRONMENTAL PROTECTION AGENCY The Accompanying Notes to Schedule of Expenditures of Federal Awards Are an Integral Pan of This Report. 120 S 46,636 29,043 63,173 74,716 2,417 6,915 1,923 474 S 3,676 8,360 1,203 703 225,297 13,942 S 769 1,517 2,286 S 704,599 S 216,795 182,745 S 399,540 City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2009 Federal CFDA Federal Grantor/Pass-Through Grantor Program Title Number U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES: Passed Through the Community Caring Counsel - Substance Abuse and Mental Health Services - Program Number Projects of Regional and National Significance 93.243 SDA42070104 U.S. DEPARTMENT OF HOMELAND SECURITY: Law Enforcement Officer Reimbursement Program Assistance to Firefighters Grant Passed Through Missouri State Emergency Management Agency - Disaster Grants - Public Assistance (Presidentially Declared Disaster) Citizen Corps TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY TOTAL FEDERAL AWARDS (1) Identified major program. 97.090 N/A 97.044 N/A Disbursements S 1.157 $ 29.247 116,638 97.036 9FEMA-1748-DR-MO $ 4,704 9FEMA-1749-DR-MO 90,279 #FEMA -1773 -DR -MO 35,520 #FEMA -1809 -DR -MO 163.386 9FEMA-1822-DR-MO 242.440 536,329 97.053 2007 -GE -T7-0034 20.779 S 702.993 $ 2.490.366 The Accompanying Notes to Schedule of Expenditures of Federal Awards Are an Integral Part of This Report. 121 City of Cape Girardeau, Missouri NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30. 2009 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Purpose of Schedule and Reporting Entity: The accompanying Schedule of Expenditures of Federal Awards has been prepared to comply with OMB Circular A-133. This circular requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal financial assistance program as identified in the Catalog of Federal Domestic Assistance (CFDA) and identification of programs that have not been assigned a CFDA number as "Other Federal Assistance". The schedule includes all expenditures of federal awards administered by the City. B. Basis of Presentation: The Schedule is presented in accordance with OMB Circular A-133, which defines federal financial assistance "...assistance that non-federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals." C. Basis of Accounting: The Schedule is presented on the modified accrual basis of accounting, which recognizes expenditures when liabilities for goods and services are incurred. This is the same basis of accounting presented in the financial statements. 122 City of Cape Girardeau, Missouri SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2009 1. SUMMARY OF AUDITORS' RESULTS: Financial Statements Type of Auditors' report issued: Unqualified Internal control over financial reporting: • Material weaknesses identified? • Significant deficiencies identified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: • Material weaknesses identified? yes X no yes X none reported yes X no yes X no • Significant deficiencies identified that are not considered to be material weaknesses? X yes none reported Type of Auditors' report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-133? yes X no Identification of major programs. CFDA Number Name of Federal Program 14.228 Community Development Block Grants/State's Program and Non -Entitlement Grants in Hawaii 20.205 Highway Planning and Construction Dollar threshold used to distinguish between type A and type B programs: $300.000 Auditee qualified as low-risk auditee: X yes no 123 2. FINANCIAL STATEMENT FINDINGS: No findings or questioned costs were noted that are required to be reported. 3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: 09-1 Procurement and Suspension and Debarment Requirements. Program: Community Development Block Grants/State's Program and Non -Entitlement Grants in Hawaii (CFDA No. 14.228) and Highway Planning and Construction (CFDA No. 20.205). Criteria: Internal controls must be in place to provide reasonable assurance that procurement of goods and services are made in compliance with the provisions of the A-102 Common Rule and that covered transactions are not made with a debarred or suspended party. Condition: We noted covered transactions with seven different contractors and subcontractors where their status to do business with the federal government was not verified. Questioned Costs: None. Context: During the year ended June 30, 2009, payments of approximately $715,500 were made to contractors that qualify as covered transactions. Although none of the recipients were disbarred or suspended, verification of their status was not performed prior to the payments being made. Effect: The lack of internal control could allow the City to make ineligible payments without being detected. Cause: Management oversight. Recommendation: The City should put procedures in place to ensure that when the value of a procurement contract exceeds $25.000, the principals are not suspended or debarred. 124 Management's Response: As of January 1, 2010, the City's grant procedures will be modified to have all requests for payments on grant related projects approved by the City's grant administrator. Such approval will be granted only after all contractors and subcontractors involved have been verified not to be on the Excluded Parties List. Additionally all future contracts on grant related projects will include a certification requirement for the primary contractor stating that no contractor or subcontractor involved with the project will be on the Excluded Parties List. 125 City of Cape Girardeau, Missouri SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended June 30, 2009 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 08-1 Actual expenditures of the Airport, Motor Fuel, Softball Complex, and Fleet Management Funds exceeded their approved budgets by $125,798, $4,532, $11.523, and $191.904, respectively. Status: Implemented. 126