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HomeMy WebLinkAbout2010-2011.AuditReportCITY OF CAPE GIRARDEAU, MISSOURI Cape Girardeau, Missouri For the Year Ended Jillle 30, 2011 ANNUAL FINANCIAL REPORT BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants CITY OF CAPE GIRARDEAU, MISSOURI TABLE OF CONTENTS FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT Page No. 1-2 REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND k'l'ALYSIS 3-18 BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET ASSETS 19-20 STATEMENT OF ACTIVITIES 21-22 FUND FINANCIAL STATEMENTS GOVERNMENTAL FUNDS FINANCIAL STATEMENTS BALANCE SHEET 23-24 RECONCILIATION OF THE BALANCE SHEET OF GOVEfu'lMENTAL FUNDS TO THE STATEMENT OF NET ASSETS 25 STATEMENT OF REVENUES, EXPENDITURES, klW CHANGES IN FUND BALANCES 26 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNrv1ENTAL 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 34-77 REQUIRED SUPPLEMENTAL INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL GENERAL 78 STATEMENT OF REVENUES, EXPENDITURES, AND CIIANGES IN FUND BALANCES -BUDGET AND ACTUAL ­AIRPORT 79 STATEMENT OF REVEl'.'UES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL ­PARK & RECREAI10N 80 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ­BUDGET AND ACTUAL -TRANSPORTATION SALES TAX TRUST FUND III 81 NOTES TO BUDGETARY COMPARISON SCHEDULES 82-85 SCHEDULE OF .FUNDING PROGRESS 86 SUPPLEMENTAL INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -VISION 2000 87 STA TE'v1ENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -CONVENTION AND TOURISM 88 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ­DOWNTOWN BUSINESS DISTRICT 89 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL HEALTH 90 STATE'v1ENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL-MOTOR FUEL TAX 91 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL -CAPITAL IMPROVEMENT SALES TAX FLOOD CONTROL 92 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FeND BALANCES -BUDGET AND ACTUAL -CAPITAL IMPROVEMENT SALES TAX­ WATER SYSTEM IMPROVEMENTS 93 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FL'ND BALANCES -BUDGET AND ACTUAL -TRANSPORTATION SALES TAX TRUSTFL'ND 94 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FL'ND BALANCES -BUDGET AND ACTUAL-CAPITAL IMPROVEMENT SALES TAX SEWER SYSTEM IMPROVEMENTS 95 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN Fu'ND BALANCES -BUDGET AND ACTUAL -TR;:\NSPORTATION SALES TAX TRUST FL'ND II 96 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FL'ND BALANCES -BUDGET AND ACTUAL -FIRE SALES TAX 97 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -PUBLIC SAFETY TRUST 98 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -DEBT SERVICE 99 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FL'ND BALANCES -BUDGET AND ACTUAL -GENERAL CAPITAL IMPROVEMENTS 100 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -STREET IMPROVEMENTS 101 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL PARK IMPROVEMENTS 102 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -COMMUNITY DEVELOPMENT BLOCK GRA'IT PROJECTS 103 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCES BUDGET AND ACTUAL -TRANSPORTATION SALES TAX TRUST FUND IV 104 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -PARK STOR,\1 WATER SALES TAX 105 STA TEMb"NT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL PARK STORM WATER SALES TAX -CAPITAL 106 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -HOUSING DEVELOPMENT GRANTS 107 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -CASINO REVENUE 108 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -FAU GRA"!T PROJECTS 109 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -SEWER 110 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL-WATER 111 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -SOLID WASTE 112 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -GOLF COURSE 113 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -SOFTBALL COMPLEX 114 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -MANAGEMENT INFORMATION SYSTEMS 115 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -FLEET MANAGEMENT 116 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -FRINGE BENEFITS 117 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -RISK MANAGEMENT 118 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -EQUIPMENT REPLACEMENT 119 ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 120-121 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 122-123 SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS 126 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS 127 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 128-129 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 130 BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants 16 South Silver Springs Road 105 South Hope 4018 Sycamore Cape Girardeau, Missouri 63703 Jackson, Missouri 63755 Cairo, lUinois 62914 Telephone (573) 334-7971 Telephone(573) 243-3991 Telephone(618) 734-3300 Facsimile (573) 243-3186 Fa<:simi1e (618) 734-3303 Facsimile (573) 334-8875 . INDEPENDENT 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, 20 II, 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, 20 II, 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 Vvlth Government Auditing Standards, we have also issued our report dated December 23, 2011, 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 intemal 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. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 18 and 78 through 85 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance ",ith auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Cape Girardeau, Missouri's financial statements as a whole. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the 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-l33, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the financial statements. The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. BEUSSINK, HEY, ROE & STRODER, L.L.C. ~/~'Ik 'I~, d.G. Cape Girardeau, Missouri December 23,2011 2 CITY OF CAPE GIRARDEAU, .tYUSSOURI 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, 2011. The intent ofthis discussion and analysis is to look at the City's fmandal perfonnance as a whole. Readers should also review the basic fmaneial statements and related notes to those statements to enhance their understanding of the City'S financial perfonnance. Financial Highlights o The assets of the City of Cape Girardeau exceeded its liabilities at the close of the most recent fiscal year by $241,171,143 (net assets). Of this amount, $29,728,938 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. o As ofthe close of the current fiscal year, the City of Cape Girardeau'S governmental funds reported combined ending fund balances of $25,664,527. Approximately 4.9 percent of this total amount, $1,248,674 is available for spending at the government's discretion (unassigned fund balance). o At the end of the current fiscal year, the unassigned fund balance for the general fund was $1,411,069 or6.0 percent of total general fund expenditures and transfers. o At the end of the current fiscal year, general fund balance reserved for emergencies was $3,735,645 or 15.8 percent of total general fund expenditures and transfers. This fund balance had been reduced by $386,630 in previous years pursuant to an emergency declared as a result of a severe ice storm. The city charter requires that reductions of the fund balance reserved for emergencies as a result of a declared emergency should be replenished at least 10% annually. At the end of the year the tot.1 amount originally disbursed had been reimbursed. o The City ofCape Girardeau's fixed assets increased $1.079,978 during the year. Net fixed asset additions of $12,296,363 Were made during the year. Depreciation for the currenl fiscal year reduced fixed assets by $11,216,385. o The City of Cape Girardeau's total long-term debt decreased by $8,489,676 (J 1.9 percent) during the current fiscal year. During the year the City received fmal allocations totaling $422,706 from a direct loan through tbe state revolving loan program. A total allocation of $1,000,000 had been authorized in the previous year to complete construction of a water transmission main from new well fields to the City's main water plant. During the year the City used proceeds from the sale of land to the Isle of Capri and debt service reserves to prepay $1,960,000 ofthe 2001 Certificates of Participation. These certificates had originally been issued to construct a manufacturing facility at the Cape Girardeau Regional Airport. Regularly scheduled principal payments and amortization of bond premiums I discounts resulted in outstanding long-term debt being reduced by $6,952,382. 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 Ihree components: I) government-wide fmancia! statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementaty information in addition to the basic fmancial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City ofCapc Girardeau's [mances, in a manner similar to a private~sector business. The statement of net assets presents infonnation 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 ofwhether the fmancial position of the City is improving or deteriorating. 3 CITY OF CAPE GIRARDEAU, MISSOURI The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes 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 eamed but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Cape Girardeau that are principally supported by taxes and intergovernmental revenues (governmental 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 sp~ndable resources, as well as on balances of spendable resources available at the end ofthe 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 financial statements. By doing so, readers may better understand the long-term impact of the government's near term 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 34 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 III, 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 except the special revenue funds that are foundations and the capital project funds which have project length budgets. 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. 4 CITY OF CAPE GIRARDEAU, MISSOURI Proprietary funds provide the same rype of information as the government-wide financial statements, only in more detail. The proprietary fund fmoncial 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, aggrcgated presentation in the proprietary fund fm.ncial 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 Fin<illcial 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 ofa government's financial position. The City of Cape Girardeau, assets exceeded liabilities by $241,171,143, an increase of $9,778,920 (4.2%). The City's $201,661,386 net investment in capital assets (land, buildings, machinery, and equipment less related outstanding debt used to acquire those assets) makes up 83.6% of the City's net assets. This net investment increased $6,395,035 (3.3%) 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 (4.1 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 $731,553 (8.1%) more than the previous year. The remaining balance of net assets ($29,728,938) is unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. This reflects a $2,652,332 (9.8%) increase 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 ActM!l Adwittes Total 2011 2010 2011 2010 2011 2010 Current and other assets 34,259.413 36,770,324 16,421,436 13.906,388 50,680.849 50,676,712 Capital assets 164,535.596 163.523,.667 98.531,896 98,463.847 263,067,492 261,987.514 T etal assets ~8.79s.o09 200,293.991 114,953.332 112.370,235 313.748.341 312.664,226 long-term lIabilities outstanding 36.838,770 40.981,943 22,030.103 24.916.665 58,868.873 65.898.608 Other liabilities 7.716,328 .. 3 924,574 5.991,997 5.448.821 13,708.325 15,373.395 Tota~ liabilities 44.555,098 50.908.517 28,022,100 30.365.486 72.577.198 81.272.003 Net assets: Invested In capital assets. Net of related debt 127.938,045 124,536.400 73,723.341 70.729,951 201.861.386 195,266.351 Restricted 5,147.781 4.863.514 4,633.038 4.365,752 9,780.819 9,049,286 Unrestricted 21.154,085 20,167,560 8,574,853 6,909,046 29,728.936 27,076.608 Total net assets 184,239,911 149.387,474 86.931.232 82,004.749 241,171.143 231,392,223 5 CITY OF CAPE GIRARDEAU, MISSOURI Governmental activities. Governmental activities increased the City of Cape Girardeau'S net assets by $4,552,712 (compared to $2,872,043 in the previous fiscal year) thereby accounting for 46.6 percent of the total growth in the nel assets of the City. Increases in net investments in capital assets during the fiscal year accounted for $3,401,645 or 74.7% of this year's increase of its governmental activities net assets. City of Cape Girardeau's Change in Net Assets Governmental Susiness4ype aclivnies activities Total 2011 2010 2011 2010 6lU1 2010 Revenues; Program revenue: Charge. for service 4,723,907 4,811,586 14,013,089 12,666.105 18,736,996 17,477,691 Operating grants and contributions 1,581,808 1,141,534 68,675 15,451 1,650,483 1,156,965 Capital grants and contribution. 2,252,992 3,963,379 417,165 536,030 2,670,157 4,519,409 General revenues: Property ta ••• 1,954,759 1.954,791 1,954.759 1,954,791 Sale. taxes 24,262,759 23.776,186 24.262,759 23,776.196 Otherla.es 8.893,241 8,224,566 8,893,241 8,224,566 Other 1,019,227 1,225,489 377,390 559,385 1.396,617 1,754,874 Special item 1,628,343 1,628,343 Total revenues 46,317,036 45,117,531 14,876,319 13,776,971 61,193,355 58,894,502 Expenses: Administrative 5,505,796 6,049,429 5,505.796 6,049,429 Capitallmp",,,,,ments 432,699 225,344 432,699 225,344 Development Services 3,032,909 2,395,163 3,032,909 2,395,163 Interest and other costs 1,622,569 1,961,055 1,622,569 1,861,055 Parks and Re""'a60n 4,846,823 4,002,531 4,646,823 4,002,531 Public Safety 12,311,961 12.583,410 12,311,981 12,583,410 Public Works 6,956,715 6,731,851 6,956,715 6,731,851 Sewer 5,910,891 5,858,412 5,910,891 5.858,412 Wa!er 6,327,558 5,979,806 6,327,558 5,979,806 SolkiWaste 3.381,137 3,202,022 3,381,137 3,202,022 Gall Course 697,753 508,639 697,753 508,639 Softball Comple. 679,194 616,020 679,194 616,020 Total expenses 34,7Q9,482 33,848,783 16,996,533 16,164,899 51.706,015 50,013,682 Increase in net assets before Iranslers 11,607,554 11,268,748 (2,120.214) (2,387.928) 9,487,340 8,880,820 Transfers (7,054,842) (8,396,705) 7,054,842 8,396,705 Increase in net assets 4,552,712 2,872,043 4,934,628 6,008,777 9,487,340 8,880,820 Ne! .ssets-beglnnlng 01 year 149,387,474 147,440,945 82,004,749 75,030,549 231,392,223 222,471,494 Inclusion of component units not previously reported 314,728 314,728 Prior period adjustments (15.003) (925,514) (8,145) 965,423 (23,148) 39,909 Net assets-end of ye.r 154,239,911 149,387,474 88,931,232 82,004.749 241,171,143 231,392,223 6 CITY OF CAPE GIRARDEAU, MISSOURl Activity in the following revenue and expense items should be noted for the current fiscal year: Revenues from governmental activities • Charges for service decreased $87,679 (1.8%) over the previous year. This year's revenue includes revenues totaling $149,150 from foundations controlled by the City thai previously had nol been included as part ofthe City's fmancial slalements. This year's revenue also includes a $150,000 paymenl from the Isle of Capri that was advanced to the City to cover potential costs of the riverboat gaming licensing process. During the current year the City did not host an air show. This reduced current year revenue by $466,705. Excluding the previous year's air show revenue, current year's foundation revenue and the payment from the Isle of Capri, the remaining service charge revenue would have increased $79,876 (1.8%) from the previous year. • The following are other significant revenue changes that occurred during the current year. During the current year the City implemented an electronic bill paying program which produced $34,706 in revenue in nine months. Revenues from the Osage Community Centre and Cape Splash Family Aquatic Park increased $47,701 (34.5%) and $230,530 (67.0%), respectively. The increased revenue from the Osage Community Centre resulted from increased activity at the facility while the increase revenue from Cape Splash represented the first full year of operation of the facility. Revenues from municipal court and city pools decreased $202,786 (21.6%) and $51,962 (34.7%) from the previous year. The municipal court revenue decrease resulted from a 24.2% decrease in traffic violations while the revenue decrease at the city pools resulted from construction alone pool and the closure of the other pool. • Operating grants and contributions were $440,274 (38.6%) more than the previous year. During the current year the City received $108,268 in payments from FEMA and SEMA for the reimbursement of costs associated with flooding in the spring and intergovernmental revenue from the Cape County Special Road District totaling $30,000 for the Bloomfield Road project. No revenues were received from these grants in the previous year. This year the City received $76,064 from a Department of the Interior Preserve America Grant to market the City's Downtown Historic District. No revenues were received from this grant in the previous year. During the current year the City received $688,542 in payments from various neighborhood improvement grants, $403,262 from various police operating grants and S61,I85 from a SAFER grant to cover the portion of the personnel costs ofthr.e additional flTefighters. During the previous year payments from these sources were $353,451, $417,159 and $97,795, respectively. • Capital grants and contributions decreased $1,730,387 (43.4%) from the previous year. In the current year $186,622 of donated assets and infrastructure were recorded. This was $736,267 (394.5%) less than the previous year. Benefiting property owners were charged $33,118 for a portion of this year's infrastructure costs. This was $2,423 (7.3%) less than the previous year. This year grants tOlaling $98,834, $422,706, $137,290, and $894,126 were received respectively for airport capital projects, water system improvements, public safety equipment, and the Fountain Street project. In the previous year grants tOlaling $1,395,260, $577,294, $261,963, and $16,401 were received for these projects respectively. The remaining grant and contribution revenue received was $480,296 which was $293,735 (37.9%) less than the previous year. • Property tax revenue was $32 less than the previous year. Final adjusted assessed value of real estate increased $4,198,497 (1.0%) over the previous year. New construction 0[$5,523,840 and annexed property of$147,290 were included in this increase. Final adjusted assessed value of personal property decreased 3,420,388 (3.6%) from the previous year. State law allowed the City to increase its levy rate by .5% during the current year. 7 CITY OF CAPE GIRARDEAU, MISSOURI Revenues from governmental activities (continued) • Sales tax revenue was 52.4% of the total revenue during the current year vs. 52.7% in the previous year. This year's revenue was $486,573 (2.0%) more than the previous year. From fiscal year ending June 30, 2008 through fiscal year ending June 30, 2010 sale tax revenue, adjusted for new taxes, had annual growth rates of .6%, (1.6%), and 1.6%, respectively. • Other taxes increased $668,675 (8.1 %) from the previous year. Franchise taxes, cigarette taxes, convention and tourism taxes, business licenses, and motor fuel taxes grew $513,776 (13.4%), $\3,016 (8.4%), $90,875 (5.4%), $30,348 (2.6%), and $24,131(1.8%), respectively. Liquor licenses decreased $3,471 (5.1 %). • Ameren paid 72.3% of the total franchise tax collected during the year based on its electricity and nattcral gas revenues. During the current year Arneren paid $368,386 (13.3%) more than the previous year. Payments received on natural gas sales only declined $19,468 (2.4%) from the previous year even though natural gas rates were approximately 3.5% lower during the current year. Payments received on electricity sales increased $387,854 (19.4%) as a result of rate that averaged 13.9% higher than the previous year and a summer that was hotter than the previolls year. • During the current year the City received payments in lieu of franchise taxes from its water and sewer funds totaling $479,616. This was $32,312 (7.2%) greater than the previous year. In the current year the water and sewer funds increased their residential and commercial rates by 5%. • Franchise tax paid during the current year by the City's telecommunication and cable TV service providers increased $97,065 (39.2%) and $16,013 (4.4%), respectively, from the previous year. During the year the City received $49,600 in back taxes from T· Mobile. • The increase in the convention and tourism taxes was comprised of $52,888 (4.6%) and $37,897 (7.3%) increases in restaurant and hotel I motel taxes, respectively, from the previous year. • Other revenue declined $206,262 (16.8%) from the previous year. Investment earnings, which accounted for 61.1 % of other revenue, decreased $497,393 (44.4%). The decrease in investment earning was partially offset by a $250,791 gain recognized on property transferred to the Isle of Capri for a new gaming development. • This year's financial statement reflected a special item totaling $1,628,343. During the year the City received S2,000,000 from the Isle of Capri pursuant to a development agreement. This agreement designated the Isle of Capri and its project site as preferred developer and site for a potential gaming facility and transferred various properties from the Cjty to the Isle of Capri. The amount received by the City that was above the market value ofthe properties transferred was treated as a special item. Expenses from governmental activities • Administrative expenses totaled $5,505,786 this year which was $543,643 (9.0%) less than the previolls year. Excluding personnel costs, the most significant cost item included in this category is the City's support ofthe "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 R;ver. The campus began operating in the fall of 2007. The total cost of the project exceeded S60 million. The city's payments to Southeast Missouri State University increased $84,671 (7.5%) to SI,216,097 this year. 8 CITY OF CAPE GIRARDEAU, MISSOURI Expenses from governmental activities (continued) Current revenues collected from the hotel, morel, and restaurant taxes not used for the operation ofrlIe Convention Visitors Bureau are committed to pay off the "River Campus" bonds. Unspent hotel, motel, and restaurant taxes collected before November 2004 are used to fund various tourism and economic development related projects. During the current year the City spent $119,904 on such projects, a decrease of $64,804 (35.1 %) from the previous year. At the end oflhe current year there was still $346,107 available for expenditure on future tourism and economic development related projects. The current year includes the following significant changes in administrative costs: (I) amounts spent on natural disaster events declined $71,486 to $88,041 (2) costs were reduced $457,202 as the result of not hosting an air show in the current year (3) amount spent on Preserve America Grant related expenditures decreased $38,117 to $51,968. • Capital improvements expenses totaled $432,699 this year which was $207,355 (92.0%) 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 $3,032,909 this year which was $637,746 (26.6%) more than previous year. During the current fiscal year the City spent $79,897 for legal expenses and other costs related to the gaming licensing process and development of agreement with the Isle of Capri for development of a new casino. This year also included $27,621 in grant funded expenditures to estsblish bike routes throughout the City. There were no similar expenditures in the previous year. • $871,695 was spent on various neighborhood improvement projects during the current year. This was $501,343 (135.4%) more than was spent in the previous year. • Interest and other costs totaled $1,622,569 this year which was $238,486 (12.8%) less than the previous year. This decrease resulted from making scheduled principal and interest payments during the current and previous year. • Parks and recreation expenses totaled $4,846,823 this year which was $844,292 (21.1%) more than the previous year. This year's expenditures include $81,052 and $407,504 in operating expenses from Shawnee Park Center and "Cape Splash" family aquatic park, respectively. This was the first year of operation for the Sha",nee Park Center which opened in the spring of2011 and the first complete year ofoperation for Cape Splash which opened Memorial Day of201O. 80th facilities were constructed using the parks I storm water sales tax. Total operating expense for Cape Splash was $138,196 in the previous year. • This year's fmancial statements included expenditures totaling $137,691 from City controlled foundations that were not included in the fmancial statements in the previous year. This year's depreciation costs were $837,596 which was $338,604 (67.90%) more than previous year. This mainly resulted from equipment purchases and facility construction funded by the parks I storm water sales tax. • Public safety expenses totaled $12,311,981 this year which was $271,429 (2.2%) less than the previous year. Personnel costs totaled SI0,273,71O during the current year. This was $53,554 (.5%) more than the previous year. Personnel costs include 3 ftre ftghter positions that were partially funded by a grant. Associated grant revenue totaling $61,185 is included in the City's operating grant and contribution revenue for the cUITentyear. Other grant related operating expenses declined $91,880 (21.5%) during the current year. 9 CITY OF CAPE GIRARDEAU, MISSOURI Expenses from governmental activities (continued) • Public works expenses totaled $6,956,715 this year which was $224,864 (3 ,3%) more than me previous year, Included in mis year's expenses is depreciation expense totaling $4,736,008 which was $260,113 (5,8%) more than me previous year and personnel costs totaling $1,094,012 which Was $29,304 (2.8%) more than me previous year, The current year includes me following significant changes in public works expenditures: (I) amounts spent on traffic control maintenance declined $39,790 (80.1%) to $9,886 (2) intemallease charges for equipment increased $16,157 (8.0%) to $218,183 (3) amount spent on street maintenance and snow removal supplies decreased $36,177 (18.9"1;,) to $155,553, Sot"''''''"",,,, ... Golf Course )II- AJblie V\brks """'" J PUb" Sa!", I Park$: 8. Recreetor, bt '.,:~:::: i::: ::: Ii 1,500,000 3,000,(00 4,5ClO,IXXl 6,COO,OOO ........................•.... -~--- 7,500,txXl 9000,000 10}SOO,0Q0 '2,OOQOOO The illustration above makes it clear that all the governmental activities and business-type activities of me City with the exception ofwaler 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 bom me governmental and business-type activities. 10 CITY OF CAPE GIRARDEAU, MISSOURI Revenues by Source ­ Governmental Activities gra'1ls 49% Proparty taxes 4.2% , ,-0,,,,, ..,1 3.5% item Revflnv..fot gQVemmental activlUu Qperaung Capital grants The above chart summari7.e, the sources of revenue from government activities. The three main sources of revenue and their share oftotal governmental revenues are sales tax (52.4%), other taxe, (\9.2%) and charges for services (10.2%). The City's general sales tax represents 36.7 percent of the total sales tax revenue and 44.7 percent of the total general fund revenues. The remaining sales taxes are for parks~ storm water, transportation, sewer, water, and public safety projects. The general fund accounts for 64.9"10 and 29.1% of the other tax and service charge revenue respectively. This represents 29.1 % and 6.9% of the total general fund revenues respectively. Business-type activities. Business-type activities increased the City or Cape Girardeau's net assets by $4,934,628 (compared to $6,008,777 in the previous fiscal year). Excluding transfers from government activities, business-type net assets decreased $2,120,214 and $2,387,928, respectively, during the last two years. These decreases were offset by transfers from governmental activities totaling $7,054,842 and $8,396,705, respectively, during the past two years. Transfers of sales tax revenue for bond payments totaling $1,702,899 and operating subsidy transfers from the general and parks / storm water sales tax funds totaling $836,147 make up 24.1 % and I J .9% cfthi. year's total transfers. respectively. Last year these transfers totaled $1 ,750,307and $879,323, respectively and represented 20.8% and 10.5% of that year's transfers. Transfers of water system improvements to the water fund decreased $1,535,944 from the previous year to $1,160,583 this year. Park and stormwater system improvement. totaling S741,272 and $74,972 were transferred to the sewer, golf, and softball complex funds this year. Last year these transfers were $2,552,677 and $573,158, respectively. The net change in assets before transfers and general revenues in the sewer, water, solid waste, golf. and softball operations totaled $(2,035,535), $395,503, (203,959), $(193,381), and $(460,232), respectively, this year. This compares to $(2,424,206), SI07,013, 208,590, $(401,639), and $(437,070), respectively, in the previous year. r~:~~.i".......-.;; ~,;;,;--l ! Charge for ;I s.r"~ l__~~_.._..~._~._~~ Financial Analysis of tbe 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 oflbe City's governmental funds is to provide infonnatlon on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's froancing 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, 2011, the City's governmental funds reported combined ending fund balances of $25,664,527, a decrease of51,787,829 (6.5%) from the prior year. Unassigned fund balances, which are available for spending at the City's discretion, accoont for 51,248,674 (4.9%) of the total fund balances. 11 CITY OF CAPE GIRARDEAU, MISSOURI The remainder of the fund balances are classified as nonspendable, restricted, or assigned to indicate that they are not available for new spending. The following are the amounts and classification of the remaining fund balances at June 30, 20 11: (1) $1,077,475 is classified as nonspendable because it is either (a) not in spendable fonn or (b) legally or contractually required to be maintained intact (2) $21,134,654 is classified as restricted because it can be spent only for specific purposes because of restrictions by external parties, constitutional provisions or enabling legislation 3) $2,200,724 is classified as assigned because its expenditure is constrained by the City's intent to use it for specific purposes. The general fund is the chief operating fund of the City. At the end of fiscal year ending June 30,2011, unassigned fund balance of the general fund was $1,411,069 while total fund balance was $6,450,686. As a measore ofthe general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents only 6.0 percent of total general fund expenditures including transfers. However, included in the reserved fund balance is $3,735,645, which had been reserved to meet the City Charter's emergency reserve requirement. This amount represents 15.8 percent of total general fund expenditures including transfers and could be used if an emergency was declared by the City Council. The Govenunental 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 increased by $930,338 during the current fiscal year. However, the General Fund Statement of Revenues, Expenditores, and Changes of Fund Balance prepared on a budget basis shows a corrent flSC'! year increase of$980,504. Differences between the amounts reflected in the two statements can be found in the Notes to Budgetary Comparison Schedules found on pages 82 to 85. The original adopted general fund budget for the fiscal year ending June 30, 201 1 had a surplus of revenues over expenditures of$36,791. The actual general fund results increased fund balances by $980,504. Significant deviations from this budget are detailed below: o Sales tax revenue was $179,600 (2.06%) more than the previous year, which was $141,105 (1.61%) more than projected for the adopted budget. The adopted budget projected revenues that were 1% above the projected fiscal year ending June 30, 2010 revenues. Actoal revenue for fiscal year ending June 30, 20 I 0 increased 1.5 5% from than the previous year while the budget had assumed it would increase only 1 %. o Franchise tax revenue was $513,775 (13.4%) more than the previous year. The main factor leading to this increase was a $368,386 (13.3%) increase in revenues collected from Ameren, the City's provider ofn.tural gas and electricity. Payments received on natural gas sales only declined $19,468 (2.4%) from the previous year even though natoral gas rates were approximately 3.5% lower doring the current year. Payments received on electricity sales increased $387,854 (19.4%) as a result of rate that averaged 13.9% higher than the previous year and summer that was hotter than the previous year During the current year the City received payments in lieu of franchise taxes from its water and sewer funds totaling $479,616. This was $32,312 (7.2%) greater than the previous year. In the current year the water and sewer funds increased their residential and commercial rates by 5%. Franchise tax paid during the current year by the City's telecommunication and cable TV service providers increased $97,065 (39.2%) and $16,013 (4.4%), respectively, from the previous year. Doring the year the City received $49,600 in back taxes from T-Mobile. Franchise tax revenue was $523,500 (13.7"10) more than projected for the adopted budget. Franchise taxes from telecommunications, City's water and sewer, electric utilities, cable TV exceeded their budgets by $127,193 (58.5%), $20,422 (4.5%), $390,073 (2.5%), and $1,716 (.5%), respectively. Franchise tax from natural gas utilities was $15,904 (2.0%) below it projected budget. o Real estate and personal property tax revenue increased $5,654 (.3%) over the previous year and was $3,110 (.2%) less than the projected budget. 12 CITY OF CAPE GIRARDEAU, MISSOURl Final adjusted assessed value of real estate increased S4,198,497 (1,0%) over the previous year while final adjusted assessed value of personal property decreased 3,420,388 (3,6%) from the previous year. The adopted budget for the fiscal year ending June 30, 20 II had assumed 1.0% and 0,0% assessed value growth, respectively, State law allowed the City to increase its levy rate by ,5% during the current year. o Business license revenue increased $30,348 (2,6%) over the previous year and exceeded the projected budget by $25,591 (2,2%), The adopted budget for fiscal year ending June 30, 2011 had projected revenue that was equal to actual revenue for fiscal year ending June 30, 2009. o Other license and permit revenue was $15,672 (7.2%) lower this year than the previous year and was $16,702 (7.6%) less than projected for the budget, The decline resulted from a decline in construction related pennits from the previous year, o Intergovernmental revcnue exceeded revenue projected for the budget by $203,254 (34.4%). This year's intergovernmental revenue included $184,162 in revenues from various public safety capital grants and $28,487 in disaster relief payments from state and federal agencies to make repairs to streets and other items damaged during the previous year's natural disasters. o Service charges were $68,530 (4.5%) less than the previous year but were $58,185 (4,8%) more than projected in the budget. Internal costs charged to various parks capital projects totaling $56,908 had not been anticipated in the original budget o Fines and forfeits revenuc was $181,913 (21.5%) less than the previous year and was $168,618 (20,2%) less than projected in the budget There was a 24,2% decrease in traffic violation cases during the years, The adopted budget for fiscal year ending June 30, 2011 had assumed revenue levels equal to year ending February 2010 levels. o During the current fiscal year expenditures were $62,326 (.3%) more than original budget, Debt service and operating expenditures were less than their original budgets by $7,394 (4.4%) and $129,024 (,7%). Capital expenditures were $198,744 (971,8%) more than the original budget. a Transfers to other funds for operating subsidies were $16,449 (.4%) more than original budget and transfers for capital expenditures exceeded their original budgets by $186,803 (12,051.8%), Proprietary funds, The City ofCapc Girardeau's enterprise funds are all presented as major funds for purposes of this report. As a result, all statements related to the enterprisc funds are presented at the government-wide level. The City does have Internal Service funds, which are reponed in total on the Proprietary Fund Statement and consolidated with other governmental activities on the government­ wide statements. General Fund Budgetary Higbligbts Total expenditures and transfers on the final amended budget were $789,900 (3.4%) more than the original adopted budget. The changes that were appropriated by the City Council can be summarized as follows: o $23,000 to cover costs associated with implementing electronic council agenda books and costs associated with a customer service survey to establish baselines for tangible results measurements. o $15,000 for the cost of equipment to be used at the City's emergency operations center. a $36,450 to cover the evaluation of the potential purchase of the federal courthouse and additional utility expense, o $138,000 for costs related to the "Ride the City" grant, the riverboat gaming license, and other economic development costs, o $$130,300 for costs related to grant funded police vehicle accessories, bullet proof vests, and CERT related expenses and other police and fire operating expenses. 13 CITY OF CAPE GIRARDEAU, MISSOURI o $11,350 for additional electricity costs associated with the street department. o $63,350 for additional part-time and overtime salary costs, unbudgeted unemployment assessments, additional utility costs, additional vehicle fuel costs, unbudgeted small equipment purchases, and other parl::s and recreation operating expenses. o $207,300 for the purchase of land adjacent to the police station and to cover the cost of various grant funded projects. o $13,150 to cover the purchase ofa truck from the Water Fund and improvements to the mausoleum. o $95,000 general fund transfers to cover shortfalls in the Airport, Softball Complex and Public Safety Trust Funds. a $30,000 general fund transfers to cover the city's portion of costs associated with grants in Housing Development Grants and Park Improvement Funds. o $27,000 general fund transfer to the Equipment Replacement Fund to transfer proceeds of the city auction. Excess general fund revenues and unrestricted fund balances were used to fund all appropriations that did not have an identified funding source. During the year departments may transfer budget appropriations between various expense types within their department. Capital Assets and Debt Administration Capital Assets. The City of Cape Girardeau'S investment in capital assets for its governmental and business-type activities as oflune 30, 2011, amounts to $263,067,492 (net of accumulated depreciation). This investment in capital assets includes all land, buildings and system improvements, machinery and equipment, and infrastructure owned by the City. City Capital Asset. 50.6% "lAnd • BIliIding&fEquipmenl ; I o Wrutrw\\.O : : CCQI'iIIn.!I:!lOom I ' Progre$$ _ ..... Major capital asset events during the current fiscal year included the following: o Construction costs totaling $3,775,170 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. $72,266 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 $1,428,322 on water system projects were incurred this year. Major water system improvements included the installation ofplatforrns, foundations, power supplies and controls to four new wells, the addition of water main extensions, the continuation of the two-inch water main replacement program and the upgrade to the Route W Booster Pump. a Construction costs totaling $18,940 were incurred for other improvements. These projects included flood and storm water control projects and police and ftre station improvements. 14 CITY OF CAPE GIRARDEAU, MISSOURI City of Cape Girardeau's Capital Assets (net of depreciation) I Governmental Business..fype Acthlj~ A~tivit!~. Total __2011 2010 2011 2010 2011 2010 Land 5,402,766 5,375,506 161,9S9 161,990 5,564,755 5,537,496 Buildings and system jmpfOve~ents 23,668,979 18,493,405 2.701,428 2,089,527 26,370.407 20,582,933 Improvements other than btJ;!dings 11,026,806 11.666,628 85,489,842 86,516.462 96,516648 98,183,090 Equipment 5,785,693 6,082,188 4,515,275 5,049.330 10,300,968 11,131,518 Infrastructure 116,018.659 115,973,947 116,018,659 115,973.947 Construction in progress 2,632,693 5,931.992 5,663,362 4,646.538 8,296,055 10,578,530 Tota! 164,535,596 163.523,667 98,531,896 98.463.847 263,067.492 261,987,514 o Major improvements to the Airport's Airfield, South Ramp and Taxiway amounted to $98,834 in construction costs. These were primarily funded by an American Reinvestment and Recovery Act grant and State Entitlement money, o Through the Department of Energy another ARRA grant was received to implement energy efficiency and conservation, Two projects were funded: the installation of a new roof at the main fire station and the purchase and installation of 104 new LED streetlights. o These projects cost $147,989 and $87,540 respectively. o Department of Transportation funds were used to partially fund the $278,791 spent to expand the City's Irail system, o In April 2008 voters approved a Y, cent sales tax to pay for storm water and park improvement projects. $74,128 and $3,760,783 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 fmancial statements. 15 CITY OF CAPE GIRARDEAU, MISSOURI City of Cape Girardeau's Outstanding Debt Vear ended 2011 Governmental Business-type Actlvit}:': Activities Total 2011 2010 2011 2010 2011 2010 Notes payable 692,646 737,605 870,117 930,125 1,5£2,763 1,667,730 Special obhgation bonds 4,839,002 5,661,524 1,150,626 1,289,046 5,989,628 6,950,570 Revenue bonds 16,218,078 16,362,923 22,961,375 25,770,915 39,179,453 42,133,838 Certificates of participation 2,100,173 2,100,173 General obligation bonds lea.ehold revenue bonds 16,233,412 18,602,621 16,233,412 18,602,621 37,983,136 43,464,846 24,982,118 27,990,086 62,965,25£ 71,454,932 Long:!~ debt. At the end of the fiscal year, the City of Cape Girardeau had total debt outstanding of $62,965,255. Bonded dehl outstanding totaling $39,179,453 is secured by revenues of the sewer and water funds and capital improvement sales taxes, The repayment of the remaining debt is suhject to annual appropriations, The City's total debt decreased by $8,489,676 (-11.9"10) during the year, During the previous year the City received a $1,000,000 ARRA direct loan commitment from the State of Missouri to be used to complete the new raw water transmission main, At the end of the current year the City had used the entire $1,000,000 commitment. During the year the City used proceeds from the sale of land to the Isle ofCapri and debt service reserves to prepay $1,960,000 of the 2001 Certificates of Participation, These certificates had originallY been issued to construct a manufacturing facility at the Cape Girardeau Regional Aitport. Regularly scheduled principal payments and amortization of bond premiums I discounts resulted in outstanding long-term debt being reduced by $6,952,382. More information about the City's outstanding debt can be found in note E to the fmancia! statements, 16 CITY OF CAPE GIRARDEAU, MISSOURI Economic Factors and the Next Year's Budget Residential development reflects the national economy. Values of residential permits issued during the year were 37.5% below the previous year's values and was 81.4% below, fISCal year ending June 30, 2007 values. Commercial development remains steady. Values of commercial permits issued during the year were 13, I % above the previous year's values and was only 8,7% below, fiscal year ending June 30, 2007 values. Commercial and residential permits valued at $30.2 million and $5.1 million were issued this year. Commercial and residential permits valued at $26.7 million and $8.1 million were issued in the previous year, Only 19 single family residence building permits totaling $2,760,860 were issued during the current year compared to 34 totaling $5,222,898 in the previous year. Local employment continues to be stronger that state and national employment. The Cape Girardeau County unadjusted unemployment rate was only 6.7% in October 201l.This compares favorably with the statewide and national unadjusted unemployment rates which were of 8.5% and 9.0% respectively, The unemployment rates were 7.3%, 9.4% and 9.6% for the county, state, and nation, respectively, for the previous October. City construction projects related to its transportation sales tax and parks and storm water sales provide significant support to local construction employment. During the year Blair Best Box purchased a commercial facility previously occupied by Thorngate Ltd., a high-end men's clothing manufacturer that had ceased operations at its Cape Girardeau plant. Blair Best Box made a $2.5 investment in the property and hired approximately 60 people to make recyclable packaging, In October 20 I °TJ Maxx opened a store in the former Goody's store that had been vacant for more 1.5 years. This store produced an additional 30 jobs, Construction has also begun on an $8 million retail facility that will house Menards, a home improvement store. The new store is expected to employ approximately 150 people. In December 2010 the Isle of Capri announced plans for a $125 million casino development in the downtown area. Construction on the project began this spring and should be completed and operational by December 2012. The development should employ approximately 450 people and produce an estimated $3 million of additional annual tax revenue for the City after its opening, During the year the City continued to enhance ils position as a regional medical center. Both hospitals have recently opened major new facilities, SoutheastHEAL TH opened a new Cancer Center and Saint Francis Medical Center opened a Heart Hospital and Cancer Institute. Taxable sales subject to the City's general sales tax increased 2.06% during the current year, Since the City is heavily dependent on sales tax reVenue for support of its general fund services, any growth of local retail sales can have a positive 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 ree 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 fJJ1l 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. Improying retail economy. Sales tax is a significant revenue source of the City and is a barometer efthe local economy. In the current year sales tax revenue from the general sales tax increased 2.1 % while inflation grew at J .8%. In the previous year sales tax revenue from the general sales tax increased 1.6% while inflation grew at ,8 %. Although there has been some sales tax revenue increase during the past 3 years, there has been very little cumulative growth during those years, Sales tax revenue for the fiscal year ending June 30, 20 II was only 2.0% more than it was for the fiscal year ending June 30, 2008. During that timeframe inflation averaged increasing 1.5% per year. The City's restaurant gross receipt tax and hoteVmotel gross receipt tax increased 4.6% and 7.3%, respectively, during the current year. In the previous year they increased 2.5% and decreased 12.0%, respectively, 17 CITY OF CAPE GIRARDEAU, MISSOURl Regie.nal 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. SALES TAX COMPAR1SON FYOa FY09 FYIO FY11 Cape Girardeau 41.2% 41.1%1 41.7% 41,9%. Carbondale 28.6% 21-7% 27,9% 27.9% Jackson 9.9% 9,9% 9.5% 9.6% Perryvme 7.1% 7A% 7,4'% 7.2% Sikeston 13.2% 139% 13,5% 13.4% 1000% 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. During the current year it appears that trend of the City increasing its share of the local market is continuing. Local Economic Development. During the current year the City provided $50,000 of public improvements associated with the new TJ Maxx store and entered into a development agreement that will pay up to $2 million dollars for public improvements at the new Menards store. These improvements will be paid from addition.l sales tax generated from this project. In the previous 7 years 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 (NARS). Payment made by the City pursuant to these agreements totaled $164,415 during the current year, Payments totaling $971,414 have been made since the beginning of these agreements. During the year the City spent $64,702 in 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 Girardeau area which includes neighboring cities Jackson and Scott City and all of Cape Girardeau County. Budget for fiscal year ending June 30, 2012 and financial condition The adopted general fund budget for the fiscal year ending June 30, 2012, was projected to produce a $2,229 surplus. The adopted general fund budget included a 2% wage increase effective July I, 2011 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 $64,990 in capital costs. The current budget's health costs appear to have stabilized as a result of a change to a more consumer besed health coverage beginning January 1,2008. Charges required to fund maximum estimated claims did not increase January 1,2011 and will only increase 3.0% on January 1,2012. The City's current financial position had improved during the past coupe of years and is good in that it has more than adequate fund balance to cover existing claims and potential emergencies. However, its fmaneial 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, frre, and various park divisions is still inadequate. Requests for Information This fmancial 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 fmances. 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. 18 BASIC FINANCIAL STATEMENTS city of Cape Girardeau Statement of Net Assels For the Year Ended June 30, 2011 Governmental Actlvitle. Primary Government Buslness-lype Activities Total -'C ASSETS Cash and cash equivalents Investments Taxes receivable Utility charges receivable Special assessments receivable Interest receivable Other receivables Notes receivable Motor fuel receivable Grants receivable Internar balances InventO!)' Prepaid ttems Restricted cash and cash equivalents Restricted lnvestments Land Buikiings other improvements Equipment Infrastructure Construction in process Total ..sets $ 3,367,824,74 23,240,724.16 4,421,245.09 486,463.02 114,847.67 327.435.60 246.642.86 116.155.53 596.803.40 534.598.73 221.604.26 585.068.40 5,402,765.51 23.668.979.26 11,026.806.39 5.785.692.46 116.018.65e.69 2,632,693.28 $ 198,795,009.05 $ 363,724,18 7,917,950.07 2,174,491.83 63,722.24 35,884.62 23.417.42 69,478.40 (534.586.73) 476,986.38 205.934.59 2,253.958.29 3.370.474.34 161,989.55 2.701,428.03 65,469,841.64 4,515,275,42 5,5e3.362.10 $ 114.953.332.37 $ 3,731,548.92 31,158,674.23 4,421,245.09 2.174.491.83 550,185,26 150,732.29 350,853.02 245,642,86 116,155.53 866,281.80 686.602.64 791,002.99 2.253.958.29 3.370,474.34 5,564.755.06 26,370,407.29 86,516,648.03 10.300.967.66 116.018.656.69 6,298,055.38 $ 313.748.341.42 LIABILITIES Accounts payable Salaries and benefits payable Interest payable Ottler liablUties Estimated daims Due to other governments Unearned revenues Estimated landfill post closure costs Current portion long-term debt Notes payable Revenue bonds payable Leasehold revenue bonds payable N Special obligation bonds payable 0 Long-term debt net of current portion: Notes payable Revenue bonds payable leasehokJ revenue bonds payable Special obligation bonds payable Compensated absenees payable Net OPEB Obllgaton T obIl UabliRies NET ASSETS Invested in capital assets, net of related debt Restricted ror debt ..",iee Restricted for depreCiation and replacement Restricted for emergency fund Restricted for Mausoleum Restricted for Rlver Campus Project Restrlcled for Local Access Channel Restricted for Operation and Maintenance Unrestricted Total net assets City of Cape Girardeau Statement of Net Assels For the Vear Ended June 3D, 2011 GOV9mmental A<::UviUes $ 1,967,047.47 657,364.96 551,578.62 246,642.09 298,000.00 2,206.77 67.967.60 25.122.00 1.235,800.00 1.895,000.00 835,000.00 667.524.22 14,982.278.23 14.338,411.64 4,004,001.51 816.676.02 1,962,477.00 44,555,098.33 127,938,045.12 21,529.13 4,910,136.00 90,265.62 107,923.84 4.754.91 13.170.76 21,154,085.34 Primary Government Business-type Activities Total $ 1,328,203.75 177,603.10 446,201.35 582,643.53 63,983.68 45,500.00 30.004.00 3,203,000.00 130,000.00 840,113.00 19,758.374.27 1,020,626.43 131,343.37 284.504.00 $ 3,295.251.22 834.968.06 997,779.97 831,285.62 298,000.00 66,190.45 67,967.60 45,500.00 55,126.00 4,438,800.00 1,895,000.00 965,000.00 1.607,637.22 34,740,652.50 14,338,411.84 5,024,627.94 948,019.39 2,226,981.00 28,022.100.48 72,577.198.81 73,723,340.65 201,661,385.77 1,121,666.67 1,143,195.80 1,577,000.00 1.577,000.00 1 ,934,372.00 6.844,508.00 90,265.62 107,923.84 4.764.91 13.170.76 8,574.852.57 29,728,937.91 $ 154,239,910.72 $ 86,931,231.89 $ 241,171,142.61 Clty of Cape Girardeau Statement of Ac::tlvltles For the Year Ended June 30. 2011 Proaflllm Revenue$ Net (Expense, Reyenue and Changes In Net Assets Function$IProvf'8j1l$ e)Cl)e'nses Charves for Services OperaUng Grants and ContTibutlons capital Grants ond Contributions GovernmentalAe_. Prima!! Government SU$lness..type ActivIties Total Primary government: Governmental adivlttes: Administrative Capital improvements: Oevelopment Setvk:es Interest and other costs Parks and Recreation Pubiic Sate\)! Pub!lc:works $ 5,505,788.20 432,.696,61 3,032.9<19,13 1,622,56Q.46 4.648,822,47 12,311,981.43 8,S5e,714.84 $: 1,562.862.40 802,589.47 1,430,198.66 766,219.20 140,039.46 $ 228,365.66 656,542.34 40,306.66 46s,323.23 136,268.24 $ 50,368.31 763,703.25 174,346.51 143,290.50 1,121,263,57 $ (3,644,169.61) 331,004.64 (1,541,n7.32) (1,622,569.46) (3,201,970.60) (10,914,146.50) (5,557,123.35) $ $ (3,644,169.61) 331,004.$4 (1,541,n7.32) (1,622,569.46) (3,201.970.60) (10,914,146.50) (5,557,123.35) N- Total governmental ac11vlties BU$ine$$~type Activities: Golf Course sewer Soltball Complex SOlid Wa.te Water 34,709,481.94 697,753.49 5,910,891.12 879,193.51 3,381,138.88 8,327,558.19 4,72.3,907.23 485,149.23 3.713,799.35 218,485,62 3,175,656,13 6.-419,796.50 ~lt1JI9-'~,~?:_ 58,934.65 1,319,51 10.420,30 19,222.90 104,622.41 478,17 292,844.01 (26,150,n4.20) (193,381.36) (2.035,534.71) (460,231.52) (203.959.24) 395,502.62 (26,150,n4.20) (193,381.36) (2,035,534.71) (460,231.52) (203,959.24) 395,502.62 Totm busines!rtype adiyitie& Total primary government $ 16,996,533,19 51,706.015.1;L 14,013,OS9.03 $18,736,996.28 $ 1.650.462.63 $: 2,870,157.63 (26,150,774.20) (2,497,604.21) (2,497,604.21) (2,497,604.21) (2B,648,378,41) See Accompanying Notes to Ba8.ic: Financial Statements. City of Cape Girardeau Statement of Acttvlties for the Year Ended June 30, 2011 Program Revenues Net (Expense) Revtnuaand Changesln Net Assets functlonSIPrograms Expense. Chargea for ServlC9$ Operating Grants: and Contrlbutlons Capital Gran1$ and Comributlons Governmental Activities Primary Government BusinKS·type AcUvitles Total IV IV Primary government: Governmental activities: General revenues: Property la)." Sales t.nes Frandlise taxes Motor rue! taxes Convention and to\Jrism taKes Merchant Iloenses Uquor licenses Qthertaxes Unrestricted grants and Q'.)nLibutions Unrestricted investment eamings Gain on sale of assets ~rnonHlperatingrevenue Special item iransfers iotaf general revenues Change in net assets 1,954.159.00 24.262,758.a8 4,351,897.33 1,355.945.43 1,166,534.92 1,186,590,81 64,927.57 167,345.35 l09,Z86.n 623.24U9 286,697.98 1,62B.343.32 F1054,841.98l 30?03!48e,37 4.552,712.17 321,153.52 55,005.93 1,230.61 7!054:841.98 7:4321232.04 4,934,627.83 1,954,759.00 24,262,758.68 4,351,897.:33 '1,:355,945.43 1,166,534,9Z 1,166,59Q,81 64,927.57 187,345.35 109,286,77 944,394.71 341.703.91 1,230.61 1.628.343.32 3S!135?18.41 9,487,340.00 Net assels -beginning Prior period adjustment Net assets ­ending 149,702,202.29 ,15I OO3.74 Z $ 154,239,910.72 82,004,748.65 !8,144.591 $ 86,931,231.89 231,706,Q5CU:l:4 123,148.33) $ 241,171.142,61 See Accompanying Notes 10 Basic Firnmcial Sraterrtents. FUND FINANCIAL STATEMENTS City of Cape Girardeau Balance Sheet Governmental Funds For Ihe Year Ended June 30, 2011 N....., ASSETS Current assets: Cash and cash equivalents Investments Recejvable~ Real estate taxes. net Personal prop<>rty laXes, net Sales tax Franchise taxes Hotel & motel tax Restaurant tax SpecIal assessments Other Interest Motor fuel tax Vehicle license fees Motor vehicle saSes tax Grants Other funds Inventory Prepaid items Total Current a.aol.: Noncurrent assets: Advances to other funds Total Noncurrent assets: Total assets $ $ General 150.571.46 3,092,870.66 54,511.65 10,157.31 887,281.55 1,758,484.52 101,528.73 87,541.15 10,404.33 317,675.81 285,059.02 195.75 125,999.25 6,882,291.19 916,441.97 916,441.97 7,798,733.16 _ $ $ ~;rport 2,137.06 47,366.62 157,074.47 167.74 89,125.28 29,960.71 16,722.00 342,593.88 342,593.88 Park and Recreation $ 31,849.70 692.099.47 60,246.80 2,558.96 7,913.45 2,871.41 797,539.81 $ 797,539.81 Trans Sales Tax Trust Fund III $ 257,843.68 5,670,913.85 8,932.13 20,458.30 57,790.62 6,015,938.58 $ 6,015,938.58 Park Proj from Parks Sales Tax $ 244,585.41 665,441.03 582.50 17,136.26 1,227,945.20 $ 1,227.945.20 $ $ Olher Governmental Funds 2,475,207.63 8,280,233.72 17.168.02 1,902.51 1,537,144.55 59,589.95 94,995.03 384,934.29 3,126.31 48,867.91 84,170.57 12,192.20 19,792.76 131,446.69 12,230.14 13,941.04 13,176,943.32 13,176,943.32 Tolal Governmental Funds $ 3,162,294.94 18,748,945.35 71,679.67 12,069.82 2,424,426.10 1,758,484.52 59,589.95 94,995.03 486,463.02 317,603.36 99,593.52 84,170.57 12,192.20 19,792.76 596,038.40 285,059.02 50,320.05 159,533.70 28,443,251.98 916,441.97 916,441.97 $ 29,359,693.95 City of Caps Girardeau Balance Sheet Governmental Funds For the Year Ended June 30, 2011 LIABILITIES AND FUND BALANCES Current liabilities: Accounts payable Salaries and benefits payable Other Ilabll~l.s Due to other governments Payable to other funds Unearned revenues Deferred revenues $ General 495,651.09 '143,609.80 176,551.23 17,000.00 215,234.65 $ Airport 125,549.06 22,107.73 47,559.55 1,694.00 Pall< and Recreation $ 215,158.72 98,190.95 20,081.27 49,273.60 Trans Sal •• Tax Trust fund III $ 203.275.48 Pall< Proj from Pam Sales Tax $ 394,522.47 $ Other Govemmenlal Funds 365,901.49 4,810.31 4,450.17 2,206.64 285,059.02 507,279.32 Tolal Governmental Funds $ 1,800,058.31 568,718.79 248,642.22 2,206.64 285,059.02 67,967.60 722,513.97 Total Current liabilities: 1,348,046.77 196,910.34 362,704.54 203,275.46 394,522.47 1,169,706.95 3,695,166.55 '" .... Non current IJabHfties: Advances from other funds Total Non current liabilities: Total liabilities 1,348,046.77 196,910.34 382,704.54 203,275.48 394,522.47 1,169,706.95 3,695,166.55 Fund balances: Nonspendable R..tricted Assigned Unassigned 1,044,541.22 3,828,565.53 166,510.21 1,411 ,069.43 16,722.00 128,961.54 2,871.41 411,963.85 5,812,663.10 833,422.73 13,340.04 10,663,003.14 1,493,288.36 (162,395.17) 1.077,474.67 21,137,654.50 2,200,723.97 1,248,674.26 Total fund balances 145,683.54 414,835.27 5,612,663.10 833.422.73 12,007,236.37 25,664,527.40 Tolaillabilities and fund balances $ 7,766,733.16 $ 342,593.68 $ 797.539.81 $ 6,015,938.58 $ 1,227,945.20 $ 13,176,943.32 $ 29,359,693.95 City of Cape Girardeau Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Assets For the Year Ended June 30,2011 Fund balances of governmental funds $ 25,664,527.40 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. (39,416,998.31) Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds, net of accumulated depreciation of $67,609,949.27. 162,694,571.98 N v. Intemal service runds 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 avaHable to pay for current-period expenditures and, therefore are deferred in the funds. 5,980,586.01 722,513.97 Other accrued expenses which are not payable from current-period revenues are included In governmental activities in the statement of net assets, <1,405,290.33) Net assets or governmental actlvitles $ 154,239,910.72 Cfty of Cap. GlrardeaLl Statement of ReV1tn1,f". Expendlb.lrH, and Chang" 11'1 Fund Bnlanee. GoYemmental FundS Foriha Yaar Endfld June 30, 2(111 General A!!p?" Pari< "'" Recreation tfRflS Sale. Tax Trutt Fund III Peri; ProjedJ from PwM Sates Til)( 0_Gov<1n_,F,,,,,,, Total GovemmenIBlFund. REVENueS Ta_ UC8n3eS & pel'lTlltl $ 15,080,989.21 1,388,588.45 $ $ $ 2,610,513.33 • • 14,853,164.54 7,396.00 $ 32,544,887.08 1,395,964.415 IOtergcrvemmentai 826,79227 220,563,14 894,125.55 3,096,937,$ 5,038,418.34 Charge'S fa"~' 115,3B8Jr.} 327,804.94 1.155,058.11 56,530"" 1,816,792.22 Internal charges 1,100,161.53 803,32 1,100,964.f.15 Fil1H and forfeits 857,413,3$ 857,413.36 MI.~ 486,014.95 206,561.12 14,$5.68 91,119.72 780,281.47 Irtve$tmf!nl revenue 00,966.52 704.34 6,793.31 116,SG2.72 27,665.41 294,018.69 537,000.00 Speclat asMumenls 19,649.37 137.036.42 156,685.79 Tood reveMles 19,904,996.61 757,639.54 1,119,220.42 3,621,301.60 27,6&5.41 16,536,260.99 44,029,084.57 EXPENDITURES Current: Admlnilllitative 1,744,658.13 1,152.193.33 1,937,528.68 4,834,300.14 Capltallu!p(o.enlef'lts 19,355.16 1'a,3S5.16 De~Selvice8 2.026.847.18 60.949.76 979,261.24 3,Q9,()7a.18 Parka and Remladoo 1.769,440.35 2,091,282.49 112,910.13 3,913,/332.91 Pubtic Sslety 11,381 , t 71,42 306,926,92 11,890,100.34 2,227,359'{)7 2:a7,359.07""'"'W.­ N Debt $mvIC8: 0'1 AdministraBw! ehergK 1,091.711: 67,488.53 58,580.32 Inlerell 67,361..52 1,533,543.00 t.(9oo.905.18 PI1rn:ipal 91,000,00 5,7IW,558.78 5,880,558.78 CapilAd (rutiay 159,755.10 17,409,25 3,439,347.96 3,760.762.96 2,633,006.35 10,010,901.64 TOOri ~IIUfes 19,470,664.55 1.152.193.33 2,106,691.74 3,500,:297.72 3,78Q.13(U4 13,362,846.29 4],374,851:18 E,xeess (dellClency) or menuelOVef ~diturea 434,312.05 (394.553.79) (929,411,32) 121,003,68 (3,752,472.73) 5,175,414.70 654,232.79 OTHER FINANCING SOURCES (USESI Trensfers out (4,207,84L4S) (261,782,00) (1,615,52) (246,384.19) (' 2,094,376.67) (16,813,9&0.83) T",nsfen In 4,611.316.n 723,624.25 1,068,996,25 350,000.00 415,363,52 4,400.417.88 11,733,740.77 Bond prooeeds 422,700.30 422,706.30 As.ard~ 26,350." 47.50 8,274.98 250,791.00 295,464.40 TQlSI other htldnQ SOUI'CS9andu3es 496.026.24 461,600.15 1.093,456.71 35<),000,00 187,019,43 (5,941),481,49) {4,312.0e9.36} Nel Change in I\md balances befont Jpedaf Item 930,338.29 67,335.96 163,985.39 471,003,68 (3,585,453.30) (1.165,046.79) (,):,117,836.57) Spedalltem 1,628,343.32 1,6za:.343,32 Nel C~in fund balances after special Item 930,336.29 57.335.96 163,965.39 471,003.86 (3,585,"''''') (136,103.<1) (2,089,493,25) Fund ba~~ begilming 5,520.348.11 1W,852.B6 250,549.68 5,341,659.22 4,418,376.03 12.145.49'3.34 27,787.0S4A4 Pr10r period m:l~ (O.01! !11,505.2!!) ~1.558.50) p3.063.19) FUfId balances-ending • 6A50,009,39 • 145,663.54 414.635.27 $ 5,812,683.10 $ 833,422.73 • 12,007,236,31 $ 25,664.527.40• CIty or CaPt' Girarde_", Reconemalion of the 51l1tsnutnt of Revenues, Expenditures, and Cluing... In Fuod S4loncas of Govammenllli Funds, to the 5l11tM'lent of ActlviUes For the Va.,r Ended June 30, 2011 N9I dlenge in fund bataoc:ea "",,,olel governmental fund. $ (2,009,493.25) Amounls reported for go'i'fHnmanJel aclivitfN In Ihe !l.a!emetII of activities life different because: Reductiorts of debt am reported in the fund financial slelamenf5 as an expense but 8ffl not Inciuded In lhe govtmment IMde al8ternent of aclivtUes. 4,941,166.00 Go~fund report capital ouJeys ... upenditutes. Howeve(, irI!he lMlement Of adlvitlOfl, the COGI of Ihole a~ets am: allOcated OYeftheir estimated llsetullllfes and reported 8Il depredatiOn expo8'l1$f!:. Thialilllhe 8JITtOl.Ini by WhIdl depnK.tatlon expense exceeded ~I ouUays 11'1 U1e CUIl'9f'I! peslod, 1,045,553.37 ftltemei seNiC1l fund. 0J13! used by ~nt to d:\at'gtI Ule a'.l$ts cit f'OfInagement information systems, ftUt management, employee frtnge beneIIils, WO!'IIrnerl's cmnpensellon. cutd equfpment roplflQllm9flllO Individual I\.Inds. £74,133.26 N -..l 0Ihef long.1atm 85selll are noIavallabie to pay for currem­ period eJ(p8l'1ditullls and" thererore are deferred in \h$ funds. (112,947.41) Some e:.peo.sea reported in Ihe atatement of activllles do nol rnquA!he ute of current tInandel IlISOllI"Cft and, lherafote, are notreported a8 expendItUreS In glM!fM'lOfllal tunas, 94,300.26 Chal'l\)O: In net a!Wt1a of govemmerrtaJ aQivilies $ 4,552.112.17 ASSETS Current assets: Cash and cash equivalents Irwestmenls Ulililies charges, net Special assessments Other Notes receivable Int.""'t Grants Inventory Prepaid llems T etal Currents assets: ..... 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 City of Cape Glrard.au Statement of Net Assets Proprietary Funds For the Ye.r Ended June 30, 2011 Buslness"type Activities .. Enterprise Funds Sewer Water Solid Waste Golf Course Softball Comelex $ 141,428.47 3,068,987.79 858,593.20 47,809.21 21,133.97 8,167.85 56,996.53 101,196.47 4,304,313.49 2,138,838.49 137,787.49 49,750.00 8,078,346.00 3,233,150.07 70,319,679.35 1,693,214.01 (32,642,779.34) $ 155,955.63 3,397,856.35 883,287.37 15,913.03 428.01 22,454.91 10,850.41 454,499.78 77,428.03 __5_,018,671.52 114,946.02 3,227,871.95 223,646.63 1,962,248.77 48,170,888.46 3,951,424.19 (13,346,935.86) $ 56,942.91 1,245,985.09 432,6\ 1.26 2.62 4,507.43 1,319.51 26,513.82 1,767,882.84 $ 3,687.61 80,719.37 1,773.17 297.13 6,514.74 656.92 93,848.94 $ 5,709.56 124,401.47 79,65 457.30 311.95 15,963.96 141.35 173.78 4,814.90 112,239.55 1,051,146.72 3,616,293.99 333,132.92 7,391.00 (2,422,746.64) 140,253.00 134,468.93 1,972,744.42 11,332.90 (601,478.45) 931.264.25 148,376.37 1,557,842.35 (152,796.65) Total Proprietary Funds $ 363,724.18 7,917,950.07 2,174,491,83 63,722.24 23,417.42 35,884.62 69,478.40 476,998.38 205,934.59 11,331,601.73 2,253,958.29 3,370,474.34 161,989.55 10,424,656.60 9,094,538.13 122,354,087.50 5,663,362.10 (49,166,737.14) Gov. Activities Internal Service Funds $ 205,529.80 4,491.778.81 9.832.24 246,842.86 15,254.15 765.00 171,284.21 96.251.96 5.237,339.03 37,500.00 53,906.45 4,588,507.14 155,653.19 10.526.18 (3,005,089.35) 53,007,966.07 44,304,090.16 2,484,486.12 104,156,329.37 1,841,023.61 $ 57,312,299.56 $ 49,322,781.68 $ 4,470,328.86 ..~ 1 ,75(),gg9. 74 $ 2,631,571.26 $115,487,931.10 $ 7,078,362.84 Cil;y of Cape Girardeau Statement of Net Assets Proprietary Funds For the Vear Ended Jun. 30, 2011 Business~type Activities· Enterprise Funds Total Gov. Activlties Proprietary Internal Service Sewer Water Solid Waste Goff Course Softball Comelo. FundS Funds LIABILITIES Current liabilities: Accounts payable $ 464,113,95 $ 644,742,13 $ 130,187,21 $ 20,185,59 $ 68,974,87 $ 1,328,203,75 $ 166,969,16 Salaries and benefit. psyable 105,566,24 17,208,62 70,218,41 48,856,12 67,097,08 308,946.47 51,373.00 interest payable 393,454,47 35,600,00 17,146,88 446,201,35 237,50 other liabllities 248,037.79 220,018,82 105,265,42 9,321,50 582,643,53 Estimated claims payable 296,000,00 Due to other governments 16,729,97 45,253,71 63,963,66 Deferred revenues Payable 10 other funds Advances from other funds Notes Payable 6,750,00 23,254,00 30,004,00 Revenue bonds payable 2,238,000,00 965,000,00 3,203,000,00 N SpeCial oblig bonds payable 130,000,00 130,000,00 40,000,00 \0 Tolal Currenlliabllnies: 3,474,652.42 __1,927,823.28 476,011.92 76,363,21 136,071,95 6,092,982,78 556,599,66 Noncurrent liabilities: Net OPEB Obligation 124,171,00 22,186,00 81,120,00 27,999,00 9,026,00 264,604,00 116,419,00 Advances from other funds 562,817,85 191,135,80 142,488,32 916,441,97 Not•• Payable 169,000,00 651.113,00 840,113,00 Revenue bonds payable Special oblig bonds payable 18,040,378,66 1,717,995,61 1,020,626.43 19,758,374,27 1,020,626.43 40,914,73 Est landfill post closure cost 45,500,00 45,500,00 Total Non current liabilities: 18,353,549,66 1,740,161,61 2,381,177,28 219,134,80 151,516,32 22,845,559,67 159,333,73 Totaillabil~ies 21,826,202,08 3,668,004,69 2,857,249.20 297,496,01 287,588,27 28,938,542.45 715,933,39_ NET ASSETS Invested in capital assets, net of related 30,337,526.43 36,347,025,74 896,979,56 1,657,320,80 2,454,486,12 73,723,340,65 1,761,155.41 Restrided for debt service 1,121,666,67 1,121,686,67 Restricted for depr .nd replacement 127,000,00 1,450,000,00 1,577,000,00 Restricted for emergency fund Unrestricted 557,193,00 4,462,376,05 892,481,00 3,843,563,38 464,698,00 231,402,10 (203,649,07) (140,503,13) 1,934,372.00 8,193,009,33 4,601,273,84 Total net ....ts $ 35,464,097.46 $ 45,654,756,79 $ 1,613,079,66 $1,453,471,73 $ 2,343,962,99 86,549,368,65 $ 6,362,429.25 Adjustments LQ refhK:t lhe CO'!1S<lliduUon <Jt internal service fund actMlJes related to I31'lterpris9 fund$' net assets of buSiness-lype activities $ 381,543,24 86,931,231,89 City of Cape Girardeau SlBtement of Revenues, Expens8$, and Chsng" In Fund Net Aneta Proprietary Funds For the VHf Ended June 30, 201t Sewer Water Golf Course Son""l1 CompleX Total Proplielaty Funds Gov. ActiVities lnlemal Service Funds Operating revenues: _1Cl1a'll"S com_I chalges TranSfer statiOn charges Olher lOeB and Charge.C__ I_charges US3gefees Miscellaneous. Total operating revenues $ 2,140,334,16 1,442,662,73 52,797,16 7,315.28 813.19 _~.~.J~~_~__ $ 3,661,020,96 2,556,351.67 163,537,72 161686.12 6,419,796.50 $ 2,139,499,36 32,099,33 696,156,05 64,177.95 $ 36,380.63 447,242.45 $ 54.935.11 3,715.65 152,964.05 6 1B51.01 .... 216,4<I!i,~_ $ 7,960,854.51 4,033,313.73 696,15a.o5 300,512.85 91,295.74 11,030.93 500,226.50 50,021.91 13,it43".¢12,2:l $ 5,404,066AO 11207.90 5,405.274.30 t.J 0 Operating expenses: Personnel services Malerlals & sopplles Contractual services. General operating expenses Special ptOgmms Intemal service ex.penses Depreciation Total operating e~penses Openoting Income (loss) 1,605,017.96 461,564.29 772,605.80 203,355.92 15,670.62 167,383.94 2 11461176.63 5.371 1997.56 (l,727,875,02) 153,003,94 1,152,019,39 2,111.392.47 340,196,62 252,493,61 101,052.&0 114471088.71 6,156,909.62 260,686.66 1,040,664,56 231,004.86 1,279,638.16 31,176.46 78,560.34 240,213.26 455,283.02 3,383,150.66 (187,322,55) 390,235.23 96,169.42 26,355.36 5,9e6.05 5,636.10 44,955.49 448,086.34 129,187.90 12,n6.90 12,n7.43 32,014.90 24.486.67 24,916.39 664,252,53 ~65!768.71) 3.631,030.05 2,018,025,86 4,804,768.71 591,016.51 381.795.97 576,904,24 4 1192j 989.50 16,274,590.64 ~~3_1_,178,62) 764,251.99 374,160.13 3.154,001.51 34,499.27 3,992.00 344 1523.16 4,G95A28.06 709,84624 Nonopetating revenues (ex.penses) Intergovernmental Investment revenue Gain from sale of asset Other non-operating revenue Interest alld other charges Issuance cost amortiZation Loss from sale ot asset Transfers out Total nonoperatirlg revenue!'t (e~penMsj 56,996.53 161,696.07 3,695.00 (576,532.65) (15,535,79) (374,776.64) 119,255.41 125,497.64 22,659.37 1,230.61 (162,850.10) (15,205,23) 90,787.70 1,319.51 32,113.79 13,942,86 (51,509.68) (5,169,61) (811.54) {l1.23513) 1,063,47 13,546,90 (10,562.32) 311.95 780,55 760.00 (7,750.43) (4,565.651 pO,463.56) 177,683.40 321,153.52 55,005.93 1,230.61 (811 ,205, 16) ('O,230,69) (911.54) (4,565.65) (301,639.80) 765,00 85,350,20 1,233.58 9,656.34 (3,993.31) (546.01) 110,698.28) 81,769.52 Income (lOSS) before contr1tMions and transfers (2,102,653.66) 351,674.38 (198,557,68) (207,030,91) (475,250,29) (2,632,818.42) 191,615.76 ContJibuted capital -conned tee Contributed capltal-develOpers Contributed capital· dOnatfons COntributed capita! -government Transfers in Transfers out Change In net assets 69,676,51 104,560.53 93,611.26 4,505,480.69 (3,500.00) 2.867,155.45 184,008.90 1,160,583.21 6,290,02 1,704.556.51 (196.557,66) 19,222.90 195.78 105,412.09 722,600.35 468,916.43 713.268.49 e8,676.51 268.569.43 19,222.90 1,976,990.82 5,086,061,23 13,500,00, 4.804,2U;,57 'LI,737.17 !14 j 814.412 804,538.52 Tot4Il net assets ­beginnlng Prior period adjustment Total net assets ­ending 32,818,833.11 (',891,06, $ 35,484.097.48 $ 43,956,453.79 ,6:253,51! 45,554]56.79 1,811,837.34 $ 1,613.079.86 $ 1,535,611.93 1.453A71.13 1,&30,714.50 $ 2,3431 982,99 61,753,310.57 (8,144.5!!) $ 66,549,366.85 5,551,890.73 _!~62,429.25 Adjustments to refiect the conSOlIdation of internal service fund activities related to enterprise funds, Change In net assets of buSiness-type activities. 130,405.28 $ 4,934,827.83 • • City of Cape Girardeau Statemaot of Cuh FloW'S Proprietary Funds For the Vear Ended June 30, 2011 Bu~ness-type ActlvlUes -Enterprise Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customEn Receipts from interfund services Oiher receipts Payments to supplters Payments for salaries and benefiW Payments for lnterfund services used Payments made In fieu of franchise taxM Remittance of taxe$. coUected from customers Sewer Water SolidWasle Golf Course $. 3,235,543.70 $ 6.642,178)13 7,315.28 5.279,10 (1.075,519.82> (3,898.297.16> (1,573.130.67/ (134,946.45) (110.5046.68) (53,182.06) (161,451,06) (316,155.21) (16,233.60) (254,466.56) 3,085,9&3.85 533,701.25 32,099.33 854.60 320,00 (1,567,381.56) (199,955.47) (1,fJ27.83fUi9j (377,43M6) {240,213.26} (48,579:.49) SoflDall Complex • 291,030,10 3,715.65 (242.120.77) {431.301.G2} (24,48U7~ Govemmeot Total Acijvllie. Proprietary Internal Service Funds F'unds $ 13.188,437.94 • 102.381,14 43,130.26 5,300,044.26 6,453,70 1,907.00 {1.003.681.38) (3,906,555.53) (3.544.451.09) {144.711.62) (547,110.Hi) (4,850110) (419,616.21) {270,150.36) Net cash provkled (used) by operating odIvilie. 245,948.95 1,918,319.49 263,700.2$ (92,049" 17) (403.7G4.91} 1,992.212.GIl 748.156.15 V.l-CASH FLOWS FROM NQNCAPITAL FINANCING ACTIVITIES TraO$klrs trom other funds Transfers to other furn:ts Advance repayment to other funds Interest paid to other funds Subsidy from federal grant Subsidy from state grant 254,668.8\ 9,736.96 {430.11) 2,051.56 {31,182.15} (11,110.89) 1.4.t4.98 104.562,09 (2S.1D4.24.) (10.$62.32) 606.41 466.918.43 (t&,825.47) (1.150,43) (275.25) 21.03 835,147.33 (8O.5n.B6) t29,483.S4) (705,36) 13,631.(10 (t4,8'>4.41) (226.56) 270,51 Net C8sI1 (used) by "on",p;lal financing 274,403,11 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions 84,852.59 Principal received on promissory note Interest received on promlseory nole Proceeds from sales of capital assets 32,622:.52 Purchase of capital assets (1SS,330.t'JO) Acquisition and construction of cap{tal assets (1.283,335.00) Principal pakl on cap'lal dellt (1.7B5.92IlOO) Interest paid on capri.al debt 11t3.958A2} Transfers in for (;8pltal acquisition$. 2.534,394.88 Transfers out for capital acquisitions r,ansfef$ in for payment of capital related debt 1,702.899.00 Net cash (used) by capital and related financing activities 38&.219.048 1,621.45 113,578.21 23,594,35 (SS,B68.76) (34O,466..1J5) (925,000.001 (t44.270,25) 8,290.02 (1,319,963.22) {46.936.06) 14,261.74 (99,717.25) 3.958.00 (181,S08.00) (26,S11.82) (289,611,104) 67,902.00 13,548.90 (3,364.76) 850.00 11,034.14 442,286.31 275,25 '80m 0.00 (3,11122) (4,se5.65) (6,641,62) 739,271.41 (14,170.46) 198,106.11 84,797.5f 14,814.41 4,457.06 1,233.58 (340,736.02) (1.626,325.92) (2,092.4"".00) (884,""•.211) ~543.534.90 (4,565.65) 1,102,899.00 (261.005.47) (15,201,81) {040.OOIl.OO) ('~SO.OO) 27,731,17 (10.698.28) l1.218.9104.36) (343,573.34) City of C$pe Girardeau Sta-.n,of C..h Flows Proprietaty ':unds For the Yaaf Ended June 30, 2011 Busln••s-type Activities ~ Enterprise Funds Sewo, Waler Solid Waste Golf eo"",," Softba' Complex Totel Proprietary Funds Government Activities Internel Service Funds W N CASH FLOWS FROM INVESTING ACTlVmES Irnerest received 169.976,68 171,644,51 Net change in pooled investmem ('.....216...) (a<J3.......6) Proceeds from sales and maturities of investments 695,000.00 Purchase of investments (7'5.000.00) Net cash provided by investing tctiviliee (1.376.242.17) (732.000.37) Net Increase (decrease) in cash and cash equivalents (....611.97) (72.022.65) Balances -beginning of year 2,749,936.93 342.924.30 Balances -end of the year $ 2,260,266.96 $ 270,901.65 Reconciliation of operating Income (Iou) to net cash provided (used) by operating activities: $ 4~,811.3a 2.894.24 44,705.62 (28,149.30) B5.265.00 51,tH1.69 1,163,72 9,490(,34 10,658.06 (2 ......971 6,142.58 $ 3,687.61 $ ....22. (30,S24.47) (29.570.25) 2,305.53 3,404.03 5,700.$5 $ 385,750,51 (2.448.259.82) 695,000.00 (715,000.00) (2.062.509.11) (56 ......361 3,167,675133 2.617.662.47 111,857.34 (541,357.24) 345,963.9« (350.246.()9) (433,762.05) (43,949.70) 249,479,50 $ 205,529.80 Operating income (loss) Adjustments to reconcile operating income to net coSh provided (used) by opel1l!lng actlviti..: Oepreciatioo e..:pense Changes in assets and liabilities: Accounts payable ~ auppfl8r Accounts payabfe ~ other S.I..... & _fits payable Customer receiviilbles Other operating receivables Prepaid expenses Inventory Net cash provided by opereting actMUes $ (1.727.675,02) 2,146,116.63 211,953.50 (901.26) 31,867.2.9 (403."'.581 (11,500.79) $ 245,946,00 $ 262.117,29 1,447,886,71 281,44().32 17,952.41 16,051,411 {21.475.76) (2,741.39) {24,659,58) $: 1,97B,379.49 $ $ (161.322.55) <W5,283.Q2 19,972.19 5,G4l.57 13,047,69 (3e,243.24} «.060.70) 263,100.28 $ $ (211.101,02) 116,720.55 (11.137.31) 1,123,10 12.799.71 (1.522.11) 25.90 (957.99) (92,049,17) $ $ {465,766,71) 24.916,39 22,007.80 16,1B6.52 274.07 144.37 (2,129,35) (403.764.91~ $ $ (2,329,948.01) 4,192,G89.50 530,236.44 23,152.50 92,576.9{I {410.1J.31,22} (18,218.51) (27,946.92) 1,992,212.64 $ 710,917.92 343.391.4a (310,257.47) 39,4a0.31 (1,641.00) 4,156.59 (1,471.26) (37,060.48) $ 148,156.15 See AcoomPMlnying Noles 10 BasiC Fil\ill1dal Statef'l"lin'lls. City of Cape Girardeau Statement of Net Assets Fiduciary Funds For the Year Ended June 30, 2011 ASSETS Ca.h and cash equivalents Investments Real e.tate taxes Personal property taxes Other Inte",st Total assets w w UABllomeS Accounts payable Salaries and benefits payable Other liabilities Total Uabil~les Agency Funds $ 678,614.94 2,119,983.55 52,663.96 10,114.01 2,035,13 9,277.76 $ 2,872,909.37 $ 37,635.37 24,458.27 2,810,814.73 $ 2,872,909.37 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II 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. The financial statements of the CGPFA are included in the accompanying financial statements ofthe City. The Cape Girardeau Municipal Development Foundation (CGMDF), the Cape Girardeau Public Safety Foundation (CGPSF), and the Cape Girardeau Parks Development Foundation (CGPDF) are also component units of the City. The financial statements of these foundations are included as special revenue funds in the accompanying financial statements. The CGPFA is a not-for-profit corporation organized and existing under Chapter 355 of the Revised Statutes of Missouri. The CGPF A board of directors consists of City officials and City Council members. Due to the significant City influence and financial accountability, the activities of the CGPFA are blended with the financial presentation of the City. The CGPFA executed a bond indenture for the purpose of issuing and securing the Series 2009 Bonds. These bonds will be used for the construction ofvarious storm water control improvements, Cape Splash Family Aquatic Center, Shawnee Park Community Center, and various other park related improvements. The CGPFA has entered into a Lease Purchase Agreement with the City from which the lease payments will be used solely to retire the debt. The (CGMDF), (CGPSF), and (CGPDF) are not-for-profit corporations organized and existing under Chapter 355 ofthe Revised Statutes ofMissouri. The (CGMDF) and (CGPSF) board ofdirectors consist of City officials and the (CGPDF) board ofdirectors consists ofPark and Recreation Board members and one City Council member. Due to the significant City influence and financial accountability, the activities of all three foundations are included in the financial presentation of the City. All three foundations were established to receive charitable donations to be used for the benefit ofthe City. Although not a component unit of the City, the City handles the funds of and provides accounting and other services for the Cape Girardeau Public Library. Since the library's funds are held by the City, this entity is shown as an Agency Fund in the financial statements. 34 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued 2. Government-Wide and Fund Financial Statements The government-wide financial statements (Le., the statement ofnet assets and the statement ofactivities) report infonnation on all of the nonfiduciary activities ofthe primary government and its component units. The effect ofinterfund 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 I) 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, artd fiduciary funds, even though the latter are excluded from the government-wide finartcial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide finartcial statements are reported using the economic resources measurement focus artd the accrual basis ofaccounting, as are the proprietary fund finartcial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless ofthe timing of related cash flows. Grants artd 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 fmancial 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 ofthe 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, f'rartchise taxes, special assessments, licenses, interest revenue, and charges for services. Sales taxes collected artd 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 finartcial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. 35 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE A -SUMMARY OF SIGNIFICANT ACCOL'NTING POLICIES -Continued 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 airportfund accounts for the resources used in the operation and maintenanee of municipal airport facilities. The parks and recreationfond accounts for the resources used in the operation ofpark 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. 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation -Continued The City reports the following major proprietary funds: The sewer fond 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 aceounts for the operation of the City's residential solid waste and recycling programs. The golffund accounts for the operation of the municipal golf course. The softball complexfond 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 fonds 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 fonds account for the operations of the Cape Girardeau Public Library. 36 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEtv1ENTS June 30, 2011 NOTE A -SUMMARY OF SIGl\'IFICAl\'T ACCOUNTING POLICIES -Continued Private-sector standards of accounting and financial reporting issued prior to December I, 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 tc 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 tc 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 various functions concerned. It is the City's policy to first use restricted net assets prior tc the use of unrestricted net assets when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. Amounts reported as program revenues include I) charges tc 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. 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation -Continued 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 ofthe 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 meeting 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 histcrical 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. 37 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued Depreciation of all exhaustible capital assets is charged as an expense against operations in proprietary funds and a program cost ofgovernmental 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 funds 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. 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 fund 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 term of the bonds. Bond premiums and discounts are presented as either increases or reductions ofthe 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 governmental activities in the government-wide statements is the same as that used for proprietary funds. 38 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued 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 eaeh fund based on its average equity balance in the pool. Cash ineludes amounts in repurchase agreements and other short-tertn investments with a maturity date within three months of the date of purchase. Investments, with a maturity date ofone year or more at the time ofpurchase, 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 wiIl benefit periods beyond June 30, 2011 are recorded as prepaid items. 11. Restricted Asscts 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. Long-Term Obligations Only that portion of long-tertn obligations expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. Long-tertn liabilities expected to be financed from proprietary fund operations are aecounted for in the appropriate proprietary fund. Long-tertn liabilities expected to be financed from governmental activities are accounted for in the government-wide statement of net assets. 13. Interfund Transactions Quasi-external transaetions 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 transaetions, except quasi-external transactions and reimbursements, are reported as transfers. Only net transfers berween governmental and business-type aetivities are reflected on the government-wide statement of activities. 39 City of Cape Girardeau, :Missouri NOTES TO BASIC FINANCIAL STATE:MENTS June 30, 2011 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued 14. Short-Term Interfund ReceivableslPayables During the course ofoperations, numerous transactions oceur 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 interfund 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. 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, sixty-six employees meet those eligibility requirements. The City provides health care coverage for them until age 65. The costs of retirees' health care benefits are recognized as expenditures as premiums are paid. For the year ending June 30, 2011, those costs totaled $511,862. 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 their families and 36 months for surviving spouses and children. There is no associated cost to the City under this program. There was one surviving spouse participating in the health insurance program and one surviving spouse and two children participating in the dental insurance program as of June 30,2011. 40 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE A -SUMMARY OF SIGNIFICAl'.'T ACCOUNTING POLICIES -Continued 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 ofthe City and are reflected as other improvements in the business­ type activities section on the statement of activities. During the year ended June 30, 2011 all infrastructures completed during the fiscal year, including projects started in a previous year, were recorded at their historical costs. 18. Subsequent Events In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure tbrough December 23, 20 II, the date the financial statements were available to be issued. NOTE B -DEPOSITS AND INVESTMENTS The City maintains a cash and temporary cash investment pool that is avallable 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, 20 II, and reported at fair value, are as follows: Deposits: Demand Deposits $ 468,530 Interest Bearing Deposit Accounts 6,195,592 Total Deposits $ 6,664,122 Investments: Negotiable Instruments $ 29,161,817 Federal Home Loan Bank 3,087,086 Federal National Mortgage Association 3,788,917 Federal Home Loan Mortgage Corporation 260,943 US Treasury Note 350.369 Total1nvestments $ 36,649,132 Total Deposits and Investments $ 43.313.254 41 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE B -DEPOSITS AND INVESTMENTS -Continued Reconciliation to Statement or Net Assets: Cash and Cash Equivalents $ 3,731,549 Investments 31,158,674 Restricted Cash and Cash Equivalents 2,253,958 Restricted Investments 3,370,474 Fiduciary Cash and Cash Equivalents 678,615 Fiduciary Investments 2,119,984 Deposits and Investments, Statement ofNet Assets $43.313,25.4 As of June 30, 2011, the City had the following investments: Investment Maturities Fair Value Negotiable Instruments 07/07/2011 -0412712016 $29,161,816 Federal Home Loan Bank 12/30/2013 -0411112016 3,087,087 Federal National Mortgage Assoc. 08/1312014 -04127/2016 3,788,917 Federal Home Loan Mort. Corp. 04/23/2014 260,943 US Treasury Note 10/3112012 350,369 Total $36,649,132 Custodial Credit Risk: Deposits in financial institutions, reported as components of cash, cash equivalents, and investments, had a bank balance of $42,558,845 at June 30, 2011, that was fully insured by depository insurance or secured with collateral held by the City's agents in its name. All investments, evidenced by individual securities, are registered in the name of the City. 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 30,2011 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; 42 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE B -DEPOSITS A,"iD INVESTMENTS -Continued c. 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 anyone issuer. At June 30, 2011, the City had no concentration of credit risk. NOTE C -PROPERTY TAXES Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August 16, 20 I 0, for collection during this fiscal year and were due on or before December 31. Most ofthe taxes are collected for the City by Cape Girardeau County in November and December and remitted to the City in December and January. The tax rates assessed at the time were as follows: General Revenue $ .3018/100.00 assessed valuation Public Health .0565/100.00 assessed valuation Special Business District .670811 00.00 assessed valuation #2 (Ad Valorem) Property tax receivable balances as of June 30, 2011 are as follows: Special General Business Public Debt Revenue District Health Service Total Current property tax $52,478 $3,605 $ 9,824 $ $65,907 Delinquent property tax 22,231 3,359 4,160 27 29,777 Reserve for doubtful Property taxes (10,030) (1,878) (27) (11,935) Net property tax receivable $61,619 $6,961 W,lQ§ $ $83,742 43 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE D -CHANGES IN CAPITAL ASSETS A summary ofthe capital assets for governmental activities included on the government-",1de statement of net assets for the year ended June 30, 2011 is as follows: Balance Current Year Balance July I, 2010 Additions Deductions Depreciation· June 30, 2011" Land $ 5,375,506 $ 27,260 $ $ $ 5,402,766 Buildings 18,493,406 6,086,064 910,491 23,668,979 Improvements other than buildings 11,666,628 110,545 750,367 Jl,026,806 Equipment 6,082,188 823,484 2,738 1,117,242 5,785,692 Infrastructure 115,973,947 4,290,007 4,245,295 116,018,659 Construction in progress 5,931,992 6,604,010 9,903,J09 2,6;)2,693 Total capital assets S1635Zl,667 $]7,241 J1D $2.206,041 li_ Z,Q;/J.m $ 164,5~~~5 • Includes depreciation expenses from the internal service funds' assets which are included in the expenses of the governmental activities and business activities on the government-wide Statement of Activities as internal charges. "Includes the internal service funds' assets which are included as pan ofthe governmental activities assets included on the government-wide Statement of Net Assets. Fo\lo'W'ing is a summary of the capital assets for business-type activities on the government-mde statement of net assets for the year ended June 30, 2011: Balance Current Year Balance ,My!, 2010 Additions Deductions Dellreciation LlI!1e 30, 2011 Land $ 161,990 $ -$ $ $ 161,990 Buildings 2,089,527 831,819 219,918 2,701,428 Improvements other than buildings 86,516,462 2,083,840 3,110,460 85,489,842 Equipment 5,049,330 393,843 65,287 862,61 I 4,515,275 Construction in progress _4,646.538 -.-1,556,870 2.540,046 5.!l!iV62 Total capital assets $ 2S,~!l~ 84Z ~... 6.8QQ,nZ UllQ:i.m $ 4122282 $ 28531.§21 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 .!'IOTE D -CHANGES IN CAPITAL ASSETS -Continued Depreciation expense was charged to functions as follows in the statement of activities: Govermnental Activities: Administrative $ 421,218 Development Services 4,410 Parks and Recreation 837,596 Public Safety 679,640 Public Works 4,736,008 Total $ 6,678,872 Business-Type Activities: Golf Course $ 118,720 Sewer 2,146,179 Softball Complex 24,918 Solid Waste 455,283 Water 1.447,889 Total $ 4,12f.2§2 NOTE E -LONG-TERM OBLIGATIONS The following is a summary ofchanges in the long-term debt from govermnental activities included on the govermnent-wide statement of net assets for the year ended June 30, 2011: Governmental Otner Revenue Debt' Bonds Total Debt payable July I, 2010 $ 26,524,629 $ 16,940,217 $43,464,846 Premium amortization 30,389 (14,245) 16,144 Retired (4,789,958) (1,130,600) (S,920,S58) Additions 422,706 _422,706 Debt payable Iune 30,2011 $ 21 165 Qfl!l S 162t~Q1B Sl228J lJB 'Other Debt includes Notes Payable, Special Obligation Bonds, Leasehold Revenue Bonds, and Certificates of Participation, 45 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,201 I NOTE E -LONG-TERM OBLIGATIONS -Continued The following is a summary of changes in the long-term debt from governmental activities included on the goverument-wide statement of net assets for the year ended June 30, 201 I: Business-Type Activities Other Debt" Revenue Bonds Total Bonds payable at July 1,2010 Discount Premium Amortization Accumulated Interest Bonds Retired $ 2,219,171 (3,420) (195,008) $25,770,915 (13,760) 315,219 (3,111,000) $27,990,086 (17,180) 315,219 (3,306,008) Bonds Issued Bonds payable at June 30, 2011 $ 2,Q20,743 S22,96U1:! $24,)182,Ul 'Other Debt includes Note' Payable and Special Obligation Bonds 46 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE E -LONG TERM OBLIGATIONS -Continued Bonds payable for governmental and business-type activities at June 30, 2011 are comprised of the following individual issues: $ 310.000 Special Obligation Refunding and Improvement Bon<:ls. Series 2002: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2012 2013 4.10% 4.10 $ 155,000 155,000 $ 9,455 3.177 $ 164,455 158.177 1 3IQ,OQO $ 12,632 $ 322,632 Principal payments are made annually on October I, and interest payments are made semi-annually on October I and April I. 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 behalfof the City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount of $1,085,000, (b) pay the costs of refunding the Certificates of Participation (Capital Improvements Projects), Series 1994A, issued on behalf ofthe City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount of$I,255,000 and prepaying the leasehold interest represented thereby, (c) pay the costs of constructing certsin 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 Refunding and Improvement Bonds Series 2002 is allocated as follows: $310,000 for Governmental activities. 47 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE E -LONG-TERM OBLIGATIONS -Continued $2,(j70.000 Waterworks Svstem Refunding Revenue Bonds Series 2006A due as follows: Year Ending Interest Principal Interest June 30. Rate Due Due Total 2012 4.00% $ 965,000 $ 106,800 $1,071,800 2013 4.00 1,705.000 68,200 1.773.200 $2,610,QOO $ I Z5,OQQ $ 2,IB5,Q.Q.Q Principal payments are made armually on March I, and interest payments are made semi-armually 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 ofthe 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 funds needed to retire $8,170,000 prineipal amount of Waterworks System Refunding Revenue Bonds, Series 1995. 48 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE E -LONG-TERM OBLIGA nONS -Continued $ 610,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1991 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2012 2013 2014 6.875% 6.875 6.875 S 190,000 205,000 215,000 $ 41,937 28,875 14,781 $ 231,937 233,875 229,781 $ 6]0,000 $ 85,523 -.SJi95,:j2:i These bonds are dated December I, 1991. The proceeds ofthe 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 eonstruction funds held by the trustee, the State ofMissouri Department ofNatural 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 ofMissouri Department ofNatural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2011 was $305,000, 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 ofthe 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 fiseal year ended June 30, 2011, City interest expense was reduced by $15,752 as a result of this transaction. Over the remaining life of these bonds, the City will receive net present value benefits of approximately $34,136 from this transaction. 49 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE E -LONG-TERM OBLIGATIONS -Continued $ 144,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1993 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2012 2013 2014 2015 5.400% 5.400 5.400 5.400 $ 33,000 35,000 37,000 ~,OOO $ 6,885 5,049 3,106 1,053 $ 39,885 40,049 40,106 40.053 $1'1'1,000 $1p,Q23 ~ ]60,Q23 Tbese bonds are dated August I, 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 I and September I. The interest due on the Series 1993 Sewer System Revenue Bonds is subsidized by interest eamings 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 ofNatural Resources deposits an amount equal to approximately 70% ofthe 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 ofthe reserve fund. The balance of the reserve fund at June 30, 2011 was $100,800. The reserve fund yields 5.15%. 50 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE E -LONG-TERM OBUGATIONS -Continued $ 1,904.386 Water Pollution Control Revenue Bonds (State Revolving Fund Program) Series 1995D due as follows: Year Ending June 30. Interest Rate Principal Due Interest Due Total 2012 2013 2014 2015 2016 2017 6.150% 6.150 6.200 6.200 6.250 6.250 $ 380,828 354,978 326,281 303,920 278,844 $ 654,172 670,022 683,719 696,080 706,156 715.465 $ 1,035,000 1,025,000 1,010,000 1,000,000 985,000 975.000 $ 1.90'1,386. $ 4.125,614 $ 6.,030,000 These bonds are dated June I, 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% ofthe 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, 2011 was $1,333,070. The reserve fund yields 5.83%. 51 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE E -LONG-TER.'\1 OBLIGATIONS -Continued li.245,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1996 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 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, lSI 2016 5.900 895,000 219,775 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 $ 6,245,000 $I,9IMS.S U,863,688 These bonds are dated June 1, 1996. The proceeds of the bond issue were used for the extension and improvement of the existing sewerage system serving the City. Principal payments are made annually on January I. 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 eamings 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 ofNatural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2011 was $4,861,500. The reserve fund yields 5.70%. 52 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 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 a<; 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, 2011, City interest expense was reduced by $19,669 as a result of this transaction. Over the remaining life of these bonds, the City will receive net present value benefits of approximately $121,986 from this transaction. $ 7,455,000 S<;)werage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 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 1.620.0()() 44,550 -.1.,,664,550 $1.455,000 $2,8§2,551 $10,3 11,5.5l These bonds are dated November 1,2000. 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 July I, and interest payments are made semi-annually on July 1 and January 1. 53 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II 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 projeet expenditures from the construction funds held by the trustee, the State ofMissouri Department ofNatural Resources deposits an amount equal to approximately 70% ofthe reimbursement into the reserve fund. The maximum amount offunds 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 ofMissouri Department ofNatural Resourees out of the reserve fund. The balance of the reserve fund at June 30, 2011 was $5,259,533.The reserve fund yields 5.16%. $15,:265,000 Waterworks System Revenue Bonds (Stale Revolving Fund Program) Series 1998 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2012 2013 2014 2015 2016 2017 2018 5.250% 5.250 5.250 5.250 5.250 4.500 4.500 $ 1,215,000 1,300,000 2,350,000 2,445,000 2,550,000 2,655,000 ~,750,000 $ 760,875 697,087 628,838 505,462 377,100 243,225 123,750 $ 1,975,875 1,997,087 2,978,838 2,950,462 2,927,100 2,898,225 _.. 2,873,750 $15,26~,OOO ~.336,332 $lMOl,337 These bonds are dated December I, 1998. The proceeds of the bond issue are being used for the extension and improvements to the waterworks system. Principal payments are made annually on January I. Interest is paid semi-annually on January I and July 1 beginning on July I, 1999. 54 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 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 ofNatural Resources deposits an amount equal to 33.41 % 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 atJune 30, 2011 was $4,765,484. The reserve fund yields 4.71 %. $16,260,000 Leasehold Revenue Bonds, Series 2009 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2012 2013 2014 2015 2016 2017 2018 2019 3.600% 3.700 3.800 3.900 4.000 4.000 4.000 4.100 $ 1,895,000 1,955,000 2,015,000 2,080,000 2,150,000 2,240,000 2,330,000 1,595,000 $ 593,118 531,532 472,882 407,394 334,594 248,594 158,994 65,794 $2,488,118 2,486,532 2,487,882 2,487,394 2,484,594 2,488,594 2,488,994 1,660,794 $16,260,000 $2,812,902 $12,Q72,2Q2 The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The CGPF A has entered into a Lease Purchase Agreement with the City. Principal and interest will be paid by CGPFA from rental and other receipts from the City. Proceeds of the bonds will be used for the construction of various storm water control improvements, Cape Splash Family Aquatic Center, Shawnee Park Community Center, and various other park related improvements. Principal payments are made annually on April I, and interest payments are made semi-annually on April I and October l. 55 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE E -LONG-TERM OBLIGATIONS -Continued $4,43~,000 Special Obligation Bon4s, Series 2005: Year Ending Interest June 30, Rate 2012 3.500% 2013 3.625 2014 4.000 2015 5.000 2016 4.000 2017 4.000 2018 4.100 2019 4.125 2020 4.200 2021 4.250 2022 4.250 2023 4.375 2024 4.375 2025 4.375 Principal Due $ 680,000 700,000 690,000 1,245,000 80,000 85,000 90,000 90,000 95,000 100,000 105,000 110,000 115,000 250,000 $;U3:!,QQO Interest Due $ 186,511 162,711 137,336 109,736 47,486 44,286 40,886 37,196 33,484 29,494 25,244 20,781 15,969 10.940 1 ~02.Q6Q Total $ 866,511 862,711 827,336 1,354,736 127,486 129,286 130,886 127,196 128,484 129,494 130,244 130,781 130,969 260,940 $5,:331,060 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 $8,190,000 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 ofproviding 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 ofthe State of Missouri, and pursuant to an ordinance duly passed and proceedings duly and legally had by the governing body ofthe City. 56 City of Cape Girardeau, Missouri NOTES TO BASIC FINAt"lCIAL STATEMENTS June 30, 2011 NOTE E -LO~G-TERM OBLIGATIONS -Continued $1,450,000 Bank of America 2006 Promissory Note: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2012 0.972% $ 100,000 $ 13,851 $ 113,851 2013 0.972 100,000 12,879 112,879 2014 0.972 100,000 11,907 111,907 2015 0.972 100,000 10,935 110,935 2016 0.972 100,000 9,963 109,963 2017 0.972 100,000 8,991 108,99\ 2018 0.972 100,000 8,019 108,019 2019 0.972 100,000 7,047 107,047 2020 0.972 100,000 6,075 106,075 2021 0.972 100,000 5,103 105,103 2022 0.972 100,000 4,131 104,131 2023 0.972 100,000 3,159 103,159 2024 0.972 100,000 2,187 102,187 2025 0.972 100,000 1,215 101,215 2026 0,972 50,000 243 50,243 $ 1,45Q,QQQ $ 1Q5,7Q5 $ 1,5.55,105 On February 9, 2006, the City of Cape Girardeau entered into a promissory note with the Bank ofAmerica 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: $579,883 for governmental activities and $870,117 for business-type activities. Principal payments of $50,000 are made semi-annually on January I 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 LIBORmultiplied by 60.938%, plus 0.813%. The rate at June 30, 2011 was 0.972%. 57 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE E -LONG-TERM OBLIGATIONS -Continued ~79.400 Waterworks Revenue Bongs, Series 2010 due as follows: Year Ending Interest June 30, Rate 2012 1.4900% 2013 1.4900 2014 1.4900 2015 1.4900 2016 1.4900 2017 1.4900 2018 1.4900 2019 1.4900 2020 1.4900 2021 1.4900 2022 1.4900 2023 1.4900 2024 1.4900 2025 1.4900 2026 1.4900 2027 1.4900 2028 1.4900 2029 1.4900 2030 1.4900 Principal Due $ 41,800 42,800 43,800 44,700 45,700 46,800 47,900 48,900 50,100 51,100 52,300 53,500 54,700 55,900 57,200 58,500 59,900 61,200 _~2,60Q ~72,iQQ Interest Due Total $ 14,438 $ 56,238 13,812 56,612 13,170 56,970 12,515 57,215 11,845 57,545 11,159 57,959 10,458 58,358 9,741 58,641 9,008 59,108 8,258 59,358 7,492 59,792 6,708 60,208 5,906 60,606 5,087 60,987 4,249 61,449 3,392 61,892 2,515 62,415 1,618 62,818 701 63,301 ~ lS2.Q72 $ 1.131,472 These bonds are dated January 1, 2010. The proceeds ofthe bond issue will be used to construct a transmission main from new well fields to Water Plant #1. Principal and interest payments are made semi-annually on January 1 and July 1. 58 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE E -LONG-TERl\-J OBLIGATIONS -Continued $1 , 140,000 Special Obligation ijpnds, Series 201 OA due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2012 2013 2014 2015 2016 2017 2018 3.000% 3.000 3.000 3.000 2.625 3.000 3.375 $ 130,000 140,000 150,000 160,000 175,000 185,000 200,000 $ 34,294 30,394 26,194 21,694 16,894 12,300 6,750 $ 164,294 170,394 176,194 181,694 191,894 197,300 206,750 $ 1,I;1Q,QQQ $ 14Bj20 $ 1,288,520 On March 1,2010, the City issued $1,275,000 of Special Obligation Bonds Series 2010A with interest rates varying from 2.625% to 3.375%. Principal and interest will be paid by the City from the revenues derived from annual appropriations by the City Council. The proceeds ofthe bond issue were used to acquire new automated trash collection/recycling trucks for the public works department and to pay the costs of issuing the bonds. Principal payments are made annually on January 1. Interest payments are made semi-annually on January 1 and July I. 59 City of Cape Girardeau, Missouri NOTES TO BASIC FINAl'l"CIAL STA1EMENTS June 30, 2011 NOTE E -LONG-TERM OBLIGATIONS -Continued The annual requirements to amortize all debt outstanding as of June 30, 2011 including total interest payments of $1 6,653,767 are as follows: Special Leasehold Year Ending Obligation Revenue Revenue Promissory June 30, Bonds Bonds Bonds Note Total 2012 $ 1,195,260 $ 6,200,581 $2,488,118 $ 113,851 $ 9,997,810 2013 1,191,282 6,888,488 2,486,532 112,879 10,679,181 2014 1,003,530 6,059,960 2,487,882 111,907 9,663,279 2015 1,536,430 5,831,010 2,487,394 110,935 9,965,769 2016 319,380 5,900,426 2,484,594 109,963 8,814,363 2017 326,586 5,885,191 2,488,594 108,991 8,809,362 2018 337,636 4,860,591 2,488,994 108,019 7,795,240 2019 127,196 2,892,804 1,660,794 107,047 4,787,841 2020 128,484 1,848,307 106,075 2,082,866 2021 129,494 1,723,908 105,103 1,958,505 2022 130,244 59,792 104,131 294,167 2023 130,781 60,208 103,159 294,148 2024 130,969 60,606 102,187 293,762 2025 260,940 60,987 101,215 423,142 2026 61,449 50,243 111,692 2027 61,892 61,892 2028 62,415 62,415 2029 62,818 62,818 2030 63,301 63,301 ~ Q,948,;U2 $48,644,134 $12,Q12,2Q2 11555,7QS $ 76 221,~53 The cash and investments available to service revenue bonds are $1,063,384 and $4,006,271 for the governmental and business-type activities, respectively. The cash and investments available to service the special obligation bonds in governmental activities are $741,434. 60 .... ---------------- City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 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 $1,622,569 Total $1.622,569 Business-Type Activities: Golf Course $ 10,562 Sewer 578,533 Softball Complex 7,750 Solid Waste 51,510 Water 162,850 Total L§lUU.i Missouri statutes limit 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 $27,107,797. NOTE F -DEFICIT FUND BALANCESIRETAlNED EARNINGS The Housing Development Grants Fund's total liabilities exceeded their total assets by $162,395, 61 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 I 1 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 defmed benefit pension plan which provides retirement, disability, and death benefits to plan members and beneficiaries. LAGERS was created and governed by statute Section RSMo. 70.600 -70.755. As such, it is the system's responsibility to administer the law in aecordance with the expressed intent ofthe General Assembly. The plan is qualified under the Internal Revenue Code Section 401 (a) and it is tax exempt. The Missouri Local Government 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 Status Full-time employees of the City of Cape Girardeau do not contribute to the pension plan. The June 30th statutorily required contribution rates are 7.1 % (General), 7.9% (Police) and 12.3% (Fire) ofannual 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 (APC) and Net Pension Obligation eNPOl The subdivision's annual pension cost and net pension obligation for the current year were as follows: Annual required contribution $1,533,704 Interest on net pension obligation o Adjustment to annual required contribution o Annual pension cost 1,533,704 Actual contributions 1,156,413 Increase ( decrease) in NPO 377,291 NPO beginning of year o NPO end of year The annual required contribution (ARC) was determined as part of the February 28, 2009 annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of February 28, 2011 included: (a) a rate of return on the investment of present and future assets of7.25% per year, compounded annually, (b) projected salary increases of 3.5% 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 75% ofthe RP-2000 Combined Healthy 62 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE G -PENSION PLAN -Continued Table set back 0 years for men and 0 years for women, and (e) post-retirement mortality based on 105% of the 1994 Group Annuity Mortality table set back 0 years for men and 0 years for women, The actuarial value of assets was determined using techniques that smoolh lhe 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 30 years for the General division, 30 years for the Police division and 30 years for the Fire division. Three-Year Trend Information Year Ended June 30 Annual Pension Cost (APC) Percentage ofAPC Contributed Net Pension Obligation 2009 2010 2011 $1,006,174 1,033,703 1,533,704 100,0% 100,0% 75,4% $ 0 0 377,291 Note: The above assets and actuarial accrued liability do not include lhe assets and present value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The actuarial assumptions were changed in conjunction v.1th the February 28, 201 I annual actuarial valuations, For a complete description of the actuarial assumptions used in the annual valuations, please contact the LAGERS office in Jefferson City. 63 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE H -POSTRETIREMENT HEAL THCARE BENEFITS 1. Description The City follows the provisions of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment 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 $2,226,981 and $1,253,595, 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. 2. Funding 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 30,20 II, 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) ofthe 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 oDO 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: 64 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE H -POSTRETIREMENT HEALTHCARE BENEFITS -Continued 2010 2011 Annual required contribution $ ] ,355,157 $1,253,595 Interest on net OPEB obligation 41,823 75,609 Adjustment to annual required contribution (57,057) (103,150) Annual OPEB cost $ 1,339,923 $1,226,054 Contributions made (589,117) (679,271) Increase in net OPEB obligation $ 750,806 $ 546,783 Net OPEB obligatiou, July I 1,680,]98 Net OPEB obligation, June 30 $ 1,68Q.128 $2.226,281 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2011 were as follows: Percentage of NetOPEB Fiscal Year Annual Annual OPEB Obligation ­ OPEB Cost Cost Contributed End of Year 6/30111 $1,226,054 55.4% $ 2,226,981 6130110 1,339,923 44.0% 1,680,198 6/30/09 1,487,797 37.5% 929,392 4. Funding Status and Funding Progress As ofJuly 1,2010, the most recent actuarial valuation date, the Plan was not funded. The actuarial accrued liability for benefits equaled $11,304,595, resulting in an unfunded actuarial accrued liability (UAAL) of $11,304,595. The covered payroll (annual payroll of active employees covered by the Plan) equaled $12,795,822, and the ratio of the UAAL to the covered payroll equaled 88.3%. Actuarial valuations of an ongoing plan involve estimates ofthe value ofreported amounts and assumptions about the probability of oecurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts detennined regarding the funded status ofthe 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 is to present multiyear trend information about whether the actuarial value ofthe Plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. However, because the City maintains no Plan assets, infonnation relative to Plan asset required disclosures is not applicable. 65 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE H -POSTRETIREMENT HEALTHCARE BENEFITS -Continued 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 1,2010, 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 ofretum on non-pension investments held by the . City. Actuarial assumptions also included annual healthcare trend rates of 8.0%, initially, reduced by decrements to an ultimate rate of 4.5% for healthcare costs after ten years. The UAAL is being amortized as a level dollar amount over thirty years based on an open group. NOTE I -INTEREST EXPENSE Interest and handling charges, totaling $1,659,421, excluding $10,064 ofinterfund interest, was incurred by governmental funds during the year ended June 30, 2011. Interest and handling charges, totaling $785,488 excluding $29,710 of interfund interest, was incurred by proprietary funds during the year ended June 30, 2011. 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 ofinterfund balances as of June 30, 2011: Advance to/from other funds: Advances from Advances to General Fund $ 916,442 $ Solid Waste Fund 582,818 Golf Course Fund 191,136 Softball Comple< Fund 142,488 ~21(i.442 $ 9J64~6 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. 66 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 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, 2011: ___~___.l'un<L..___.__•__ _Trans.~~ F~fI!.__ Transfer To General Fund $ 4,207,641 $ 4,677,317 Airport Fund 261,782 723,624 Park and Recreation Fund 1,817 1,086,998 Vision 2000 3,102 Housing Development Fund 18,787 Motor Fuel Tax Fund 1,320,000 Capital Improvement Sales Tax- Water System Improvements 1,400,000 4,351 Sewer System Improvements 2,816,599 Fire Sales Tax Fund 2,135,157 Public Safety Trust Fund 1,166,579 2,135,157 Transportation Sales Tax Trust III 350,000 Park/Storm Water Sales Tax 1,215,245 Park/8tonn Water Sales Tax-Capit.1 153,992 136,535 Casino Revenue Fund 1,879,134 Debt Service Fund 1,955,282 General Capital Improvements Fund 60,000 Park Improvements Fund 114,817 Community Development Block Grant Project Fund 218 325 Water System Improvement Projects Fund 4,351 Stonn Water Projects from Storm Water Tax 55,164 Park Improvement Projects from Park Sales Tax 248,364 415,384 Sewer Fund 3,500 4,505,461 Water Fund 8,290 Golf Course Fund 105,412 Softball Complex Fund 4,566 466,918 Fleet Manllllement Fund 14,814 Equipment Replacement Fund 10,698 _____ 27:Jn L.lliW..m L_J.M4Z5~ 67 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMEt-.'TS June 30, 2011 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, 2011 was as follows: Softball Sewer Water Solid Waste Golf Course Complex Total Fund Fund Fund Fund Fund Enterprise Operating revenues $ 3,644.123 $6,419,796 $3,175,858 $ 485,149 $ 218,486 $13,943,412 Depreciation 2,146,179 1,447,889 455,283 118,721 24,918 4,192,990 Operating Income (Loss) (1,727,875) 260,887 (187,323) (2U,IOI) (465,767) (2,331,179) Operating transfers in 4,505,461 8,290 105,412 466,918 5,086,081 Net Income (Loss) 2,667,155 1,704,557 (198,558) (82,200) 713,269 4,804,223 Current Capital Contributions 267,849 1,344,592 19,419 722,600 2,354,460 Property, Plant and Equipment Additions 1,825,121 1,668,019 99,717 9,272 766,258 4,368,387 Deletions 66,644 6,988 4,507 40,541 118,680 Net Working Capital 829,661 3,090,848 1,291,8lJ 15,286 11,013 5,238,619 Total Assets 51,312,299 49,322,762 4,470,329 1,750,970 2,631,571 115,487,931 Bonds and Other Long·teoo Liabilities Payable from Operating Revenues 20,598,300 2,705,182 2,534,431 219,135 151,516 26,208,564 Total Net Assets $35,484,097 $45,654,757 $1,613,080 $1,453,472 $2,343,983 $86,549,389 NOTE L -GOVERNMENTAL FUND BALANCES REPORTING In order to improve the usefulness and understandability of governmental fund balance information, the Governmental Accounting Standards Board issued Statement No. 54 in which it classified fund balance into the following categories: Nonspendable, Restricted, Committed, Assigned, and Unassigned. Definition of each category and a reconciliation of how the City of Cape Girardeau reported its Fund Balance follow. Nonspendable Fund Balance Includes amounts that caunot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts, It also includes long-term receivables that are not currently available for expenditure. These financial statements reflect non-spendable fund balances of$2,1 00 that are legally restricted to provide for the perpetual care and maintenance of a mausoleum in the City's cemetery, Only interest eamings on this amount can be used for mausoleum maintenance. Prepaid expenses of$158,932 and long-term advance receivables of $916,442 are also reflected as non-spendable fund balances. 68 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 11 NOTE L -GOVERNMENTAL FUND BALANCES REPORTING· continued Restricted Fund Balance -Includes amounts that can be spent only for specific purposes because of re;triction~byext~~p~ies, constitutional provisions or enabling legislation. These fmancial statements include the following restricted fund balances. Fund balances totaling $4,9 I 0, I 36 are restricted by the City Charter to use during officially declared emergencies. Special revenue fund balances totaling $11,614,690 are restricted by their enabling legislation. $4,411,985 in capital project fund balances are restricted as the result of special revenue transfers and unspent bond proceeds. The remaining $200,844 in restricted fund balances result from legal agreements with various outside parties. Committed Fund Balance These funds can only be used for specific purposes pursuant to constraints imposed by formal action ofthe City's highest level ofdecision-making authority (the City Council). Those amounts carmot be used for any other purpose unless the govenunent removes or changes the specified use by taking the same type of formal action it employed to previously commit those amounts. Typically, a resolution by the city council would be needed to commit a portion of a fund balance for a specific purpose. The City currently has no committed balances. Assigned Fund Balance -Amounts that are constrained by the govenunent's intent to be used for specific purposes, but are neither restricted nor committed. For all govenunental funds other than the general fund, any remaining positive amounts not classified as nonspendable, restricted or committed. For the general fund, amounts can be assigned the intent to be used for a specific purpose by the city council or a city official authorized by the city council; the amount reported as assigned should not result in a deficit in unassigned fund balance. Unassigned FtIJ1d Balance -For the general fund, amounts not classified as nonspendable, restricted, committed or assigned are included here. For all other govenunental funds, it is the amount expended in excess of resources that are nonspcndable, restricted, committed or assigned. The general fund is the only fund that should have a positive amount in this classification. Order of Usage -Unless specifically identified, expenditures will reduce related restricted balances first, and then related committed balances, next related assigned balances, and finally unassigned balances. Expenditures for a specifically identified purpose will reduce the specific classification offund balance that is identified. 69 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATH1ENTS June 30, 2011 NOTE L -FUND BALANCE REPORTING -Continued Major §l!~s!al Revenue FUDd. Major Park Parks and Transportation Projetts Gentral Airport Recreation Sales Tax from Parks Fund balances ~ fund Fund TrllS! Euod III §:l!les Tax Nonspendablt';: Prepaid expenses $ 125,999 $ 16,722 $ 2,871 $ $ Lon~term advance 916,442 Mausoleum 2,100 Restricted lor: Mausoleum 88,166 Emergencies 3,735,645 Local access channel 4,755 Convention and tourism RJVer campus bonds Community development Public safety Street projects 5,812,663 Flood control projects Water system projects Sewer system projects Parks and recreation Park and storm water projects 833,423 Other capitaJ projects ASSigned to: Airport l28,962 Parks and recreation 398,793 Operations and maintenance 13,m Encumbrances 166,510 Other capillil projects Debt service Other projects Public safety Parks and recreation Other capital projects Community development Street projects Unassigned: 1 ~II 069 WSQ686 ~~ 1lHJS $ ,S 812 06l L,833~;U Other EI!!!JIi Total $ 13,340 $ 158,932 916,442 2,100 88,166 1,174,491 4,910,136 4,755 356,284 356,284 107,924 107,924 43,749 43,749 652,981 652,981 2,064,635 7,877,298 44,303 44,303 3,466,667 3,466,667 964,900 964,900 214,595 214,595 1,048,214 1.881,637 524,260 524,260 128,962 398.793 B,I71 l66,510 35,775 35.775 21,529 21,529 6,353 6.353 858,825 858,825 301,596 301.596 220,237 220,237 65 65 48,908 48,908 (16'J25) I 24M74 $1. QOI2.36 $.25 6Q~ SZl 70 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE M -RESERVED RETAINED EARNINGS AND RESTRICTED ASSET ACCOUNTS At June 30, 2011, the City has restricted assets in its Proprietary Funds as follows: Depreciation Revenue Bond and Bond Sinking and Replacement Construction ~.FURc! To1l!! Sewer Fund $ 127,000 $ $2,149,626 $ 276,626 Water Fund 1,450,000 4,516 1,888,302 3,342,818 Solid Waste Fund ~.~- __4,145 844 _4,989 $1 577 OOp L~.l...-641 $4Q~~,m $5,Q2~,433 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 time 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 $45,500 as of June 30, 2011, which is based on the amount that would be paid ifall equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as ofJune 30,2011. However, the actual cost ofclosure 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. 71 City of Cape Girardeau, Missouri NOTES TO BASIC FINAt~CIAL STATEMENTS June 30, 2011 NOTE 0 -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 ofthe 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 employment practice liability. Risks forthese coverages are spread across members of the fund. Currently the fund is comprised of860 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 ofpremiums in each of the last twelve 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 "A-" by A.M. Best. Airport liability is carried by Catlin Insursnce 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. Equipment coverage is carried by Travelers Property Casualty Company of America. It is rated "A+" by A.M. Best. The City has established self-insurance plans for employees' health insurance and workers' compensation. Both ofthese 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 Anthem Blue Cross Blue Shield of Missouri, 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 $150,000 and $150,000 annually per employee and up to the aggregate stop loss amount (115% of estimated claims) of approximately $2,750,000 and $2,800,000 annually beginning January 1,2010 and 2011, 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 100.0% and 93.5% ofthe aggregate stop loss amount for fiscal years ending June 30, 2010 and 2011 respectively. 72 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2011 NOTE 0 -RISK MANAGEMENT -Continued 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. AU claims are paid directly by the City. The City has purchased insurance coverage from Safety National Casualty Corp. that limits the City's maximum individual claims liability to $550,000 for USL & Hand $400,000 for other regular employees and per occurrence claims liability to $1,000,000. Additionally, $5,000,000 in coverage is provided for annual claims in excess of $1,699,596. Rates are charged by the internal service fund to the other City funds based on rates and experience factors established by the National Council on Compensation Insurance and City of Cape Girardeau actual claims trends. Safety National is rated "A" by A. M. Best. Claims liability is estimated using data supplied by the administrator. The claims activity during the last five years is summarized as follows: CLAIMS Ll~f!ILITlES RECONCILIATION Health Workers' Insurance ComJlensation Total Balance June 30, 2006 $ 509,500 $ 705,000 $ 1,214,500 Provision for Incurred Claims 2,520,411 517,676 3,038,087 Payment of Claims ...~.._ (2,3 8'!J61) (552,676) (2,936.837) Balance June 30, 2007 $ 645.750 $ 670,000 $ 1,315,750 Provision for Incurred Claims 1,812,199 6,009 1,818,208 Payment of Claims _~d.46,449) (406,009) (2,752,458) Balance June 30, 2008 $ 111,500 $ 270,000 $ 38 I ,500 Provision for Incurred Claims 1,860,053 523,905 2,383,958 Payment of Claims (1,7731l53) (363,905) (2,136,958) Balance June 30, 2009 $ 198,500 $ 430,000 $ 628,500 Provision for Incurred Claims 1,843,651 583,662 2,427,313 Payment of Claims (1,911,151) ~ (493,662) _ __ .J2d04"ill) Balance June 30, 2010 $ 13] ,000 $ 520,000 $ 651,000 Provision for Incurred Claims 2,238,055 106,108 2,344,163 Payment of Claims _~_(2.17I.055) ill6,108) ---1:ui97,163) Balance June 30, 20 II L~J2,S,,90Q t. 100.000 L~~:29.8,OOQ 73 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2011 NOTE P -CONCENTRATION OF CREDIT RISKIBAD DEBT ALLOWANCE The City has uncollateraIized utility accounts receivable generated within a limited geographical region primarily consisting ofits 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, 2011, utility receivables totaled $2,268,627. On the financial statements, the utility receivables are shown net of the allowance for doubtful accounts of $94,135. This results in net utility receivable of $2,174,492. During the year ended June 30, 2011, the allowance was increased by $35,520 or approximately .28% of the current year's utility charges and accounts totaling $70,678 were written off. 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, 2011, the City had construction commitments outstanding 0£$5,570,846. The construction commitments represent incomplete portions of contracts entered into to construct the following: various street projects, trail construction, platforms, power supply, and fiber optic cabling for 4 new raw water supply wells, the rehabilitation of a commercial building, and housing rehabilitation. These contracts are expected to be completed within the next fiscal year. 4. Encumbrances As of June 30, 2011, the City had encumbrances outstanding of$8,165,801. 74 City of Cape Girardeau, Missouri NOTES TO BASIC FINA."lCIAL STATEMENTS June 30, 2011 NOTE R -PRIOR PERIOD ADJUSTMENTS On the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balance, there are prior period adjustments that total ($13,063.79). General Fund had a ($.01) adjustment due to actual receipts from the FEMA ice storm disaster that occurred during January 2009 being less than originally thought. Airport Fund had a prior period adjustment of ($11 ,505 .28) for painting done by DSW on the hangar they rented during September 2009, the value of which was supposed to be applied toward their rent due. Finally, the Housing Development Grants fund had a prior period adjustment of ($1 ,558.50) for a receivable that had been set up for administrative fees due from the Neighborhood Stabilization Grant which were decreased because funds were not obligated by the due date. The Proprietary Funds Statement of Revenues, Expenses, and Changes in fund Net Assets had prior period adjustments in both Sewer and Water funds which had to do with Construction in Progress costs for projects expected to be capitalized upon their completion. Sewer fund had ($1,631.40) reversed due to completed project cost being under the $5,000.00 capitalization threshold. Also, ($259.68) was set up for engineering time thought to be a sewer project that turned out to be a street project. Water fund had an adjustment in the amount of ($6,253.51) for costs associated with a water main extension that will be privately maintained by St. Francis Hospital. The previous year's financial statements had assumed that the extension would be maintained by the City and the costs were included with the City'S fixed assets. The Statement of Activities includes a prior period adjustment in the amount of($1,939.95) on the governmental side for the decrease in Construction in Progress for items determined not to be a general fixed asset. The previous Governmental Fund and Proprietary Fund adjustments were also included as prior period adjustments on the Statements of Activities. NOTE S -CONTINGENCY I. 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 ofthese 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 v.ith rates currently equal to 1 % will expire during the term ofthis agreement. Tbe City will be required to substitute revenues for sales taxes with equivalent rates, if available, when the specific sales taxes expire. 75 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 20 II NOTE S -CONTINGENCY -Continued Required quarterly payments increase armually 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 without 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 ofthe agreement will not be required to be paid. The term ofthe developer agreement is 20 years from the execution of the agreement. During the fiscal year ended June 30,20 II, no payment was due under the development agreement. 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% ofthe 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. 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, 2011, the City incurred payments of $151,594 under the development agreement. This amount is included in the Development Services expenses on the statement of activities. 3. In July 2007, 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. 76 City of Cape Girardeau, Missouri 'NOTES TO BASIC FINA."lCIAL STATEMENTS June 30, 2011 NOTE S -CONTINGENCY -Continued This project involves the conversion of the fonner Sears facility into a call center for National Asset Recover Services (NARS) 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 I % 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 $627.53. Beginning in year six ofthe agreement, 50% ofthe gross rentals from the NARS 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. 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, 2011, the City incurred payments of$39,729 under the development agreement. This amount is included in the Development Services expenses on the Statement of Activities. NOTE T -SUBSEQUENT EVENTS On November 15,2010 the City approved Abatement Order on Consent #1003 issued by the Missouri Department of 'Natural Resources. This was an administrative action taken by the Missouri Department of Natural Resources as result of their belief that the City was in violation of the Missouri Clean Water Law. As a result of the Order, the City has agreed to pay a $15,000 civil fme, commit at least $111,000 to a supplemental environmental project, and construct a new wastewater treatment plant that is in compliance with current Missouri Clean Water Law. 77 City of Cape Girardeau General Statoment of RevenueR, expenditures, and Chengea In Fund Balances For the Year Ended June 30,2011 Budgeted Amounts Original Final REVENUES T.... $ '4,412,898.00 $ 14,412,698.00 Licenses &. pennil$ 1,379,700.00 1,379,700.00 Intergovernmental 590,465.00 590,4e5.oo Charges for services 258,641.00 256,641.00 Internal charges ,,150,055.00 1.150,0$$.00 Fines and forfeits 825,000.00 825,000.00 Miscellaneous 288.597,00 268,597.00 Investment reven~ 103,497.00 103,497.00 Total revenues 19,008,853.00 19,008,853,00 EXPENDITURES CUlTent Adminjstrative 2.308,645.00 1,708,095.00 Contingency 40.000,00 40,000.00 Development Services 1,528,638.00 2,222,638.00 Parks. and Recreation 1,746,664.00 1,812,764.00 Public Safety 11,477,712.00 11,616,012.00 --J Public Works 2,231,659,00 2,346,509,00 00 Total current ~331.316.00 19,74M16,00 Debt service: Administrative charges 470,00 470,00 Interest 75,377.00 75,317.00 Prindpal 91,000.00 91,000,00 Total debt service 166,647.00 166,847.00 Capital outlay: Administrative 20,450.00 9,450,00 Parks and Recreation 7,600,00 Public Safety 214,300.00 Public Works Total capital outlay 20,450.00 Total expenditures _ (deficiency) of mv",,_ 19,518,615.00 over (under) uperu:iilu"'" (509.762,00) (1,142,862.00) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers !n 4,468,290.00 4,653,29000 Special 3S$e$1$ments 9,000.00 9.000.00 Advance repayments 13,652.00 73,652,00 Asset disposition Transfers out (4.004,369,00) (4,161,169,00) Total other financing sources and uses and spedal items 546,553,00 774,753.00 Net change in fund balances 38,791.00 (366,109.00) Fund balances -beginning 4,462,385.17 4,462,365,17 Prior period adjustment (0. 01 1 (0,01) Fund balances -ending $ 4,499,176.16 $ 4,094,276.16 ~ Budget and Actual Actual Amounts Varianee with Flnllli Budget ~ PoaUive (N!!ljotlvo) $ 15.080,989.21 1,388,588.45 eaa.628.37 275,398.93 1,189,365.66 657,413.36 466,014.95 106,166.80 20,050,565.75 $ 666,091.21 8,S1l6.45 298,183.37 16,757.93 39.310.66 (167,566.62) 177,417,95 2.669,80 1,041,712.7$ 1,861,241:1.58 95,640,13 2,129,734.90 1,777,702.79 11,382,158.98 2,241,115.26 19,287,601.66 46,645.42 (55,640,13) 92,903,10 35,061,21 233,853,02 105,393,72 458,416.34 1,091.79 67,361,52 91,000.00 159,453.31 (621.79) 6,015.46 7,393,69 7,606.00 204,475,64 7,112.58 219,194.22 19,666,249.19 9,450.00 (6.00) 9,6:/4,38 364,316.56 4,677.316.77 19.649.37 80,511.00 28,350.92 (4,207,841.45) 596.187.47 950,504.03 4.462,365,,7 (0.01) $ 5,442,689.19 (175,973,23) 10.649.37 6,1359.86 26,350.92 (48,452,45) (178,565,531 1,34e,e13.03 $ 1,348,813.03 City of Cape Girardoau Airport Statement of Revenues, Expenditures. and Changes in Fund Balances· Budget and Actual For tho Ye.r Ended Juno 30, 2011 Variance with Budgotod Amounts Fln.I Budget - POSltiVO OIi!!Inai Fln.I Actual Amounts (N!llatlvo) REVENUES Intergovemmental $ 276,960,00 $ 276,960,00 $ 225,043,31 $ (51,936,69) Charges for services 323,100,00 323,100,00 327,804,94 4,704,94 Miscellaneous 205,836,00 205,836,00 208,567,12 2,731,12 Investment revenue 720,00 720,00 1,326,13 606,13 Asset disposition 47,50 47,50 Total revenues 606,636,00 606,636,00 762,769,00 (43,647,00) EXPENDITURES Current: Administrative 1,191,488,00 1,251,836,00 , ,160,934,52 90,903.48 Teta' current 1,191,488 OIL 1,251,636,00 1,160,934,52 90,903.48 '" Debt service: '-0 Ime"",' 599,00 599,00 599,00 Principal 11,BOO,OO 11,BOO,OO 11,800,00 Total debt servtce 12,399,00 12,399,00 12,399,00 Capi1al outlay: Administrative 1,550,00 11,550,00 11,550,00 Total capital outlay 1,550,00 11,550,00 11,550,00 TOlal expenditures 1,205,437,00 1,275,787,00 1,160,934,52 114,852.48 Excess (deficiency) of revenues over (under) expenditures \398,601,00) (459,151.00) (398,145,52) 71,005,48 OTHER ANANCING SOURCES (USES) ANO SPECIAL ITEMS Transfers in 660,583,00 715,583,00 723,624,25 8,041,25 Transfers out Total other financing SOUrces and uses and special items (261,782,00) 398,601,00 (261,782,00) 453,801.00 !l61,782,00) 461,642.25 8,041,25 Net change In fund balances (15,350,00) 63,696,73 79,046,73 Fund batances ­beginnlng 86,374,31 86,374.31 96,374.31 Plior period adjustmem [11,505,28) (11, 505281 P1,505,28) Fund balances ­ending $ 74,869,03 $ 59,519,03 $ 138,565,76 $ 79,046,73 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, 2011 Budgeted Amounts Original Final Actual Amounts REVENUES Charges for services $ 902,472.00 $ 902,472.00 $ 1,154,872.72 Intemal charges 1,025.66 Miscellaneous 13,800.00 13,800.00 14,765.68 Investment revenue 3,240.00 3,240.00 11,327.14 Total revenues 919,512.00 919,512.00 1,181,991.20 EXPENDITURES Current: Parks and Recreation 2,145,194.00 2,327,894.00 2,089,912.81 Total current 2,145,194.00 2,327,894.00 2,089,912.81 Capital outlay: 00 Parks and Recreation 17,409.25 0 Total capital outlay 17,409.25 Total expenditures 2,145,194.00 2,327,894.00 2,107,322.06 Excess (deficiency) of revenues over (under) expenditures (1,225,682.00) (1,408,382.0QL (925~30.86) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 1,225,682.00 1,225,682.00 1,086,998.25 Asset disposition 8,274.98 Transfers out (1,816.52) Total other financing sources and uses and special items 1,225,682.00 1,225,682.00 1,093,456.71 Net change in fund balances (182,700.00) 168,125.85 Fund balances ­beginning 243,805.09 243,805.09 243,805.09 Fund balances -ending $ 243,805.09 $ 61,105.0~ $ 411,930.94 Variance with Final Budget ­ positive (Negative) $ 252,400.72 1,025.66 965.68 8,087.14 262,479.20 237,981.19 237,981.19 (17,409.25) (17,409.25) 220,571.94 483,051.14 (138,683.75) 8,274.98 (1,816.52) (132,225.29) 350,825.85 $ 350,825.85 See Independent Auditors' Report. City of Cape Girardeau Transportation Sales Tax Trust Fund III Statement of Revenues, Expenditures, and Changes)" Fund Balances -Budget and Actual For the Year Ended June 30, 2011 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget· Posltlve (Negative) REVENUES Taxes InveSbnent~nue Total revenues $ 2.985.000.00 46.000.00 3,033.000.00 $ 2.985.000.00 48.000.00 3.033,000.00 $ 2.610.513.33 151.219.84 2,761.733.17 $ (374,486.67) 103,219.84 __(271,266.83) EXPENDITURES Current: Development Services Total current 63.000.00 63.000.00 72,000.00 72,000.00 60,949.76 60,949.76 11.050.24 11.050.24 00 Capital ouHay: Capitallmprovemenl Projects Total capilal outlay Total expend~ure. 1.175.369.00 1.175.369.00 1.236,369.00 3.525,36900 3.525,369.00 3.597.369.00 1.690.573.03 1,690,573.03 1,751.522.79 1.834.795.97 1.834.795.97 __1_,845.646.21 Excess (deficiency) of revenue. over (under) expenditures 1.794.631.00 __(564.369.00) 1.010.210.38 1.574,579.38 OTlfER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Total other financing sources and uses and special items Net change in fund balances 350.000.00 350,000.00 2.144,631.00 350.000.00 350.000.00 (214,369.00) 350.000.00 350,000,00 1,360.210.36 1.574,579.38 Fund balances -beginning Fund balances -ending 1,664,611.61 $ 3.809.242.61 1.684.611.61 $ 1,450,242.61 1,664,611.61 $ 3.024,821.99 $ 1,574,579.38 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2011 BUDGETS AND BUDGETARY ACCOUNTING The City adopts annual operating budgets for all funds except Stonn Water Projects from Stonn Water Sales Tax Fund, Park Improvement Projects from Park I Stonn Water Sales Tax Fund and Water System Improvement Project Fund which have project length budgets and the Cape Girardeau Municipal Development Foundation, the Cape Girardeau Public Safety Foundation, and the Cape Girardeau Parks Development Foundation whose main purposes are to solicit and collect donations. 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. Fonnal 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 21,2010 and amended on February 22, 2011, March 21, 2011, and July 5, 2011. The initial budget and final amended budget are both reflected in the financial statements. For the year ended June 30, 2011, the fund expenditures for Vision 2000, Dovmtown Business District, Motor Fuel, Capital Improvement Sales Tax-Water System Improvements, Capital Improvement Sales Tax-Sewer System Improvements, Transportation Sales Tax Trust Fund II, Transportation Sales Tax Trust Fund IV, General Capital Improvements, and Park Improvements exceeded their approved budgets by $3,102, $1,594, $290, $6,627, $7,654, $23,516, $127,920, $137,817 and $2,985, respectively. 82 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2011 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 Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual (Budget Basis) for all governmental fund types is prepared on a budgetary basis which includes encumbrances as expenditures. The following reconciliation adjusts GAAP basis to budget basis: Excess (Deficieney) of Rewnues and Other Financing Sources Over (Under) Exp,mditures and ~[FinancingJ,[R§ Park Projects Parks and Transportation From Park Non-major General Aml.Q!l lil;creat.i.rul InIstUl Sales. Tax Funds GAAPBa'iis $ 930.338 $ 67.336 $ 163,985 $ 47l,004 $ (3,585,453) $ (136,703) Jncrcase due to: Year-end encumbrances Administrative services 1,555 6,266 24,632 Development services 5,809 161.l,483 Parks and recreation 14,834 4,903 12,712 Public Safety 24.021 208 Public Works 13,931 Capital outlay 4,471,862 632,124 Contingency Funds not budgeted aTlnUil:l!y 3,585,453 2&7,951 Advance from other finds 80,512 Adjust investments to market 16,178 622 2,534 34,551 51,416 Encurnbrance revenue _--,,8£> _. 4.48Q --~ _ . ...191,210 --_.­~---- _]25,;[62 ._lU@ __7.437 _...4.J.QM..12 .---3,585.453 I 511Q.1311 Decrease due to: Year-end enrumbrances Admlnistrative services 8,838 15,001 Development services 24,916 38,416 Parks and recreation 1,263 3,296 4,885 Public safety 98,857 25,454 Public works 27,688 Capital outlay 2,123,081 519,191 Contingency 4,948 Encumbrance revenue 8,589 894,126 520,742 Adjust invest to market -~-.~---_. --.-. ----­ _Jl?,099 _11"OJl1 ~ _ ...M.!.'1.ill .~~-------- Budget Basis $ 28~ $...~~ ~16.~~ L Il6qJIQ L-.~ 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, 83 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2011 BUDGETS AND BUDGETARY ACCOUNTING -Continued GAAP Basis Increase due to : Prior year encumbrances Operating expenses Capital Outlays Depreciation Special assessments Bond proceeds Interest cost amortized Cost of bond refunding amortization Issuance cost amortization Interest paid more than accrual Amortized bond premiumldiS(;ount Adjust investments to market Amounts deferred to be used for future deht service on capital appreciation bonds Construction fund earnings Interest subsidy received Net OPEB ohligation Asset dispositions Decrease due to: Year-end encumbrances Operating expenses Capital outlays Landfill closure and maintenance costs Cost of bond refunding amortization Issuance cost amortization Interest paid more than accrual Bond principal paid Amortized Bond premiumldiscount Capital outlays Adjust investments to market Asset DispOSitions Deferred revenues Adjustment to liability for future landfill postclosure maintenance costs Contributed capital .Scwer $ 2,667,155 83,026 2,042,450 2,146,179 12,775 313,157 18,836 10,545 148,596 365,025 30,819 68,128 5,239,536 1,031,534 826,492 33,295 2,199,500 1,630,323 404,804 198,1 71 6,324,120 Net Income (Loss '! Water Solid y/aste Gulf Course $ 1,704,557 $ (198,558) $ (82,200) 6,573 \6,470 1,447,889 4,066 10,698 455,283 3,341 118,721 42,610 15,205 6,190 17,148 42,780 9,405 285 6,884 10,411 10,345 ~ 4,507 1,583,21;; 51J,642 132,692 174,935 16,832 249 10,236 1,611 12,333 925,000 218,690 26,704 11,697 3,420 323,427 99,717 1,187 28,369 38,406 1,889 Softball Comgle;x $ 713,268 8,498 24,918 3,462 JZ,llQ 7,646 16,625 3,117 1,344592 19.419 72;;,600 2,830,589 38Q,265 ._ 47559 ~988 Budget Basis $1582511 ~1180 LL654.iW. $ 29.11 L ~~ 84 232 City of Cape Girardeau, Missouri NOTES TO BI.JDGETARY COMPARISON SCHEDULES June 30, 20 II BUDGETS AND BUDGETARY ACCOUNTING -Continued ~lJnc()m\li1oss) Data Fleet Employee Risk Equipment Proc~sil]g M~~ru W= MlIDl!gem~nt Repll1cement GAAPBasis $ 64,125 $ (59,566) $ 382,707 $ 374,041 $ 43,231 Increase due to: Prior year encumbrances Operating expenses 7,058 Capital Outlays 51,361 6,935 6,494 Depreciation 58,336 17,949 268,239 Deferred revenues 14,814 Issuance cost amortization 546 Difference between proceeds from sale of fixed assets and gain or loss Net OPEB Obligation 7,581 35,574 Adjust investments to market __-252 __25 _~1.619 16.197 6,188 ._~!7,933 ___82,355 11,619 .---16.1 97 -IDdiiZ Decrease due to: Year-end encumbrances Operating expenses 330 4,157 Capital outlays 58,651 Interest paid more than accrued 117 Adjust investments to market Amortized Bond premium/discount 367 Principal paid 40,000 Capital outlays __79,125 __17,867 215.846 138,106 _22.024 256.330 Budget Basis $. 43252 L . .lQ.i ~._394 326 ~m L~ 85 CITY OF CAPE GIRARDEAU, MISSOURI Schedule of Funding Progress June 30, 2011 (b) (b-a) [(b-a)/c)] 00 (a) Entry Age Unfunded (c) UALasa'" Actuarial Actuarial Actuarial Accrued (alb) Annual Percentage of Valuation Value Accrued Liability Funded Covered Covered Date Of Assets Liability (VAL) Ratio Pa}:!oll Payroll 2/28/2009 $ 26,852,264 $ 30,816,797 $ 3,964,533 87% $ 13,852,177 29% 2/2812010 28,033,747 31,677,279 3,643,532 88% 14,192,849 26% 2128/2011 28,180,987 32,648,850 4,467,863 86% 13,842,403 32% See Independent Auditors' Report. SUPPLEMENTAL INFORMATION City of Cape Girardeau Vision 2000 Statement of Revenues, Expenditures, and Changes in Fund BaJances Budget and Actual w For the Year Ended June 30, 2011 Variance with Budgeted Amounts Final Budget ­ Original Final Actual Amounts Positive (Negative) REVENUES Investment revenue Total revenues $ $ $ 86.82 86,82 $ 86.82 86.82 EXPENDITURES Total expenditures Exoess (defidency) of revenues over (under) expenditures 86,82 86,82 00 ......,J OTHER FINANCING SOURCES (USES) AND SPECIAl-ITEMS Transfers out Total other financing sources and uses and specialltems Net change in fund balances Fund balances ­beginning Fund balances ­ending $ 3,025,92 3,025.92 3,025,92 $ 3,025,92 (3,101.94) (3,101.94) (3.015.12) 3,025.92 $ 10,80 $ (3,101.94) (3,101.94) (3,015.12) (3,015,12) See Independent Auditors' Report. 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, 2011 Variance with BudgetQ(j Amounts Final Budget· Positive OriQ'nal Final Actual Amounts !NeiatiVOl REVENUES T.... Intergovemmental Miscellaneous Investment revenue T0181 revenues $ 1,720.920,00 21,000,00 1,741,920,00 S 1,120,920.00 21,000,00 1,741,920.00 $ 1,766,534.92 25,539,02 500,00 12,929.01 1,805,502.95 $ 45,6'\4.92 25,539,02 500.00 ~8,070,991 63,5a2.95 EXPENDITURES Current Administrative Total current 1.790,740.00 1,790,740.00 1,975,090,00 1,975,090.00 1,912.69EL65 1,912,896.65 62,193.35 62,'93.35 00 00 Tota! expenditures Excess {deficiency) of revenues OYer (under) expenditures 1,790!?~0 00 (46,820.00) 1,975,090,00 (233,170,00) 1,912,896,65 (107,393,70) 62,193,35 125.776.30 Net change in fund balances (46,820.00) (233,170.00) (107,393,70) 125,776.30 Fund balances -beginning Fund balances ending S 005,746.52 616.926.52 $ 665,746.52 432,576.52 $ 665,146.52 556,352,82 $ 125,776.30 See Independent Auditors' Report. City of Cape Girardeau Downtown Business District Statement of Revenues, ExpenditurG:s. and Changes in Fund Balancn -Budget and Actual For the Year Ended June 30, 2011 Budgeted Amounto Original Final Actual Arrtoun~___ Variance with Final Budget. PositiVQ (Negative, REVENUES Taxes investment revenue $ 20,825,00 1,500.00 $ 20,825.00 1,500.00 $ 32,051.70 1,102.03 $ 11,226.70 1397.97) T etal revenues 22,325.00 22,325.00 33,153.73 10,828.73 EXPENDITURES Current: Deve~pmemSeN~s 12,325.00 12,325.00 13,919,49 (1,594.49) T olal curren! 12,325.00 12,325.00 13,919,49 (1,594,49) <X> "" Debl Service: Interest Pnndpel Total debt &el"\Ilce Total """"ndttures Excess (deHdoncy) of revenue. over (under) expenditures 5,073.00 4,927.00 10,000.00 22,325.00 5,073.00 4,927.00 10,000.00 22,325,00 5,03322 4,966,78 10,000,00 23,919,49 9,234.24 39.78 (39,78) (1,594.49) 9,234.24 Net cI1ange In fund balance. 9,234.24 9,234.24 Fund balances beginning Fund balances ­ending 33,828.55 $ 33,828.55 $ 33,828.55 33,82B.55 33,828.55 $ 43,002.79 $ 9,234.24 See Independent Auditors' Report. City of Cape Glrard.au Health Statement of Revenues, Expenditures, and Changes in Fund Balances .. Budget and Actual For lIle Vear Ended Juno 30, 2011 Variance with Budljeted Amounts F{nal Budget ~ Positive Original Final Actu.t Amounts !NegativO! REVENUES Taxes licenses & pennits Intergovernmental Investment revenue Talai revenues $ 310,440.00 4,000.00 7,575,00 12,000.00 334,015,00 $ 310,440.00 4,000.00 7,575.00 12,000.00 334,015.00 $ 309,707.80 7,396,00 7,948,99 12,669,42 337,722,21 $ (732.20) 3,396,00 373.99 669.42 3,707,21 EXPENOITURES Current Public Safety 334,015.00 334,015,00 312,949,16 21,065.84 '0 0 Total current T olal expenditures Excess (deficiency) of revenu•• over (under) expeOdHu,es 334,015,00 334,015,00 334,015.00 334,015.00 312,949.16 312,949.16 24,773.05 21,065.84 21,065,84 24,773.05 Net change tn fund balances 24,773,05 24,773,05 Fund balances ­beginnIng Fund balances ­ending $ 448,688,24 446,688.24 $ 446,688,24 446,688.24 $ 446,688.24 471.461.29 $ 24,773.05 ----- Cily of Cape Glrard ••u Motor Fuel Tax Statement of Revenues. expenditures, and Changes in FUnd Balances,. Budget and Actual For tho Y ..r Ended Juno 30, 2011 Variance with Budgeted Amounts Final Budget· Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 1,324,000.00 $ 1,324,000.00 $ 1,356,235.59 $ 32,235.59 Investment revenue 3,740.00 3,740.00 8,913.96 5,173.96 Total revenues ----1.327,740.00 1,327.740.00 1,365.149.55 37.409.55 EXPENDITURES Current: Public Safety 289.53 (269.53) Totaj current 269.63 ~2B953) Total expenditures 289.63 (289.53) Exces$(defidency) of revenues over(undeQexpend~ures 1,327,740.00 1,327,740,00 1.354.659.92 37,119.92 '"-OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special assessments 4.468.00 4,468.00 4,570.55 102.65 Transfers out !1,320,000,OO) p,320,000.001 (1,320,000.00) Total other financing sources and uses and special items 11,3 15,532.00) ~1 ,315.532.00) (1,315,429.351 102,65 Net change in fund balances 12,206.00 12,208.00 49,430.57 37,222.57 Fund balances -beginning 161,548.30 161,548,30 161,546.30 Fund balances -ending $ 173,796.30 $ 173,756.30 $ 210,976.87 $ 37,222.57 See lndependent Auditors' Report. City of Cape Girardeau Capital Improvement Sales Tax"Flood Control Statament of Revenues, expenditures, and Changes In Fund Balances Budget and Acwal w For the Year Ended June 30, 2011 Variance with Budgeted Amounts FInal Budget .. PosItive Original Final Actual Amounts (NegatlvGl REVENUES 1nvestment revenue S $ S 1,587,77 $ 1,587,77 T mal revenues 1,587,77 1,587,77 EXPENDIWRES CapHal outlay: Capital Improvement Projects 17,000,00 17,654.60 1654,60) Total capital outlay 17,000.00 17,654,60 (654,601 T alai expenditures 17,000,00 17,654.60 (654,601 Excess (deficiency) of revenues IV '" over (under) expenditures 11 1 ,000,00) (16.058,83) 933,17 OTHER ANANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out (45,000.00) 45,000,00 Total other financing sources and uses and special items (45,000,00) 45,000,00 Net change in fund balances (62,000,00) (16,066.63) 45,933,17 I'=und balances -beginning 59,577.12 59,577.12 59,571.12 Fund balances -ending $ 59,577.12 $ (2,422,88) $ 43,510,29 S 45,933,17 = See Independent Auditors' Report. City of Cape Glrard••u Capital Improvement salas Tax~WatGr Systsm Improvements Statement of Revenues, ExpendltunJa. and Changes In FUnd Balances -Budget and Actual Fortha Year Ended June 30, 2011 Original Bud9~Amounts Final Actual Amounts Variance with Final Budget. Posilive (Negative. REVENUES Tax.. Investment revenue $ 2,190.700.00 100.000.00 $ 2,190,700.00 100.000.00 $ 2.225.580.51 78,918.05 $ 34.880.51 (21.081.95) Total revenues 2.290,700.00 2,290,700.00 2.304,498.56 13.798.56 EXPENDITURES Cvrrent: Development Services; Total current 38.000.00 38,000.00 40,700.00 40,700.00 48,354.01 48,354.01 (7,654.01) (7,654.01) \0 w Debt SO!Vlce: Administrative charges Interest Prindilal Total debt servlce 59,719.00 56t,120.00 1,110,000.00 1,130,839.00 62,469.00 583,370.00 1,130,600,00 1,776,439.00 61.534.57 583,277.85 1,130,600.00 1,775,412.42 934.43 92.15 1,026.58 Total expenditv .... 1,768.839.00 1.817.139.00 1,823,766.43 (6,627.43) Excess (deficiency) of revenves ()Ver (under) expenditures ~~521,S61.00 473,561.00 480,732.13 7,171.13 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In Transfer out 11,400,000.00) 4,350.97 (1,400,000.001 4,350.97 T01al other financing sources and uses and specJalltems (1,400,000.00) (1,395.649.03) 4,350.97 Net change In fund balances 521,861.00 (926,439.00) (914,916.90) 11,522.10 Fund balances ­beginning 2,252.035.23 2,252.035.23 2.252,035.23 Fund balances ­ending -.! 2,773,89623 $ 1,325,596.23 $ -.!._337,118.33 $ 11,522.10 City of Ca"" Girardeau Transportation Sales Tax Trust Fund Statement of R&venue&, Expenditures, and Changes In Fund Balances -Budget and Actual For the Year Ended June 30. 2011 Variance with 9udg«3:ted Amo"'llts Final Budget .. PosItive Original Final Actual Amounts (Negative! REVENUES Investment revenue $ 12.400,00 $ 12,400,00 $ 12,074.45 $ l325,55) Total revenues 12.400,00 12,400,00 12,074,45 i325,55) EXPENDITURES Debt service: Administratlve charges 470,00 470,00 416,00 52,00 Interest 12,423,00 12,423,00 12,423,00 Principal 123,000,00 123,000,00 123,000,00 Total debt service 135.893,00 135,893,00 135,841,00 52,00 ;g Capilal ounay: Capital Improvement Projects 3,500,00 3,447,68 52,32 Total capital outlay Total expenditutes 135,893,00 3,500,00 139,393,00 3,447,68 139,268,66 52,32 104,32 Excess (deficiency! of revenues over (under) expenditures (123,493,00) __(126,993,00) (127,214,23) (221,23) OTHER FINANCING SOURCES (USES! AND SPECIAL ITEMS Special assessments Tolal other financing sources and uses and special items Net change in fund balances 55,100,00 55,100,00 (68,393,00) 55,100,00 55,100,00 (71,893.00) 58,916,14 58,916,14 (68,298,09) 3,816,14 3,816,14 3,594,91 FUnd balances ­beginning Fund balances ­ending $ 233,488,15 165,095,15 233,488,15 $ 161,595,15 $ 233,488,15 165,190,06 $ 3,594,91 City ot Cape GIrardeau Capital Jmprovement Sales Tax-&.twer system Improvementa Statement of Revenues. ~ndlturaaJ and Changes In Fund Batam:es -Budget and Aetu3f For the Year Endod June 3D, 2011 Valiance with Budgeted Amounts Final Budget- Positive Original Final Actual Amounts (Negative) REVENUES T""". $ 2,100,700,00 $ 2,190,700,00 $ 2,225,604,58 $ 34,904,56 Inve$lment revenue 12,000,00 12,000.00 15,215.46 3,215.48 Tota! revenues 2,202,700,00 2,202,700.00 2.240,820.04 38,120.04 EXPENDITURES Current Development Services 38,000,00 40,700.00 46,354.00 (7,854,001 Total t:tIrrent 36,000.00 40,700,00 46,354.00 (7,654,001 Total expenditures 38,000,00 40,700.00 46,354.00 j7.654,00) \0 V. ExceSS (deficiency) of revenues over {under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITellS Transfers out Total other financing soun::es and uses and special Items Net change in fund balances 2.184,700.00 (1,702,899.00) !',702,B99,00) 461,801.00 2,162,000.00 (2,816,599,00) (2,816,599.00) (654,599,00) 2,192,466.04 (2,618,599,00) (2,616,599,00) (624,132,96) 30,466.04 30,466.04 Fund balances. -beginning Fund balances -ending $ 1,150,395.58 1,612.196.58 $ 1,150,395,58 495,79$,58 $ 1,150,395.56 526,262,62 $ 30,466.04 city of Cape Glrard98U Transportation Sales Tax Trust Fund II Statament of RevanueB. Expendltuf9S. and Changes In Fund Balances ~ Budget and Actual For the Y98r Endod Juna 30. 2011 Variance with Budgeted Amounts Final Budget • Positive Ort~inal Final Actual Amounts !N!!!"!''''' REVENUES InvutJnent revenue Total revenues EXPENDITURES Capital outlay: capital rtnprovement Projects Total C8pita1 outJay Total expenditures Excess (deficiency) of revenues over (under} expenditures 0\ '" OTHER FlNANCING SOURCES (USES) AND SPECIAL ITEMS S~al assess~nts Total other financing sources and uses and special nems Net change In fund balances Fund balances -beginning Fund balances -ending $ 6,700,00 6,700.00 6,700.00 41,100.00 41,100.00 47,800.00 47,571.52 $ 95,371.52 $ 6,700,00 6,700.00 6.700,00 41,100.00 41,100.00 47,800.00 47,571.52 $ 95,371.52 $ 9,92229 9,922.29 (23,516.49) (23.516.49) __(23,516.49) 33,438.78 29,541,91 29,541.91 62,980,69 47,571.52 $ 110,552.21 S 3,222,29 3,222.29 23,516.49 23,516.49 23,516.49 26,738.78 (11,55809) (11,558.09) 15,180.69 $ 15,180.69 City of Cape Girardeau Fire Sales Tax Statement of Rewnues. Expenditures. and Changes In Fund Balances .. Budget and Actual For the Year Ended June 30, .2011 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget­ Pordtlve JNog.tI""j REVENUES Taxes Total revenues $ 2,123,310.00 2,123,310,00 $ 2,123,310.00 2,123,310,00 $ 2,152,560,98 2,152,560.98 $ 29,250.98 29,250,98 EXPENDITURES Total expenditures Excess (defidency) of revenues over {under) upenditures 2,123,310,00 2,123,310.00 2,152,580,98 29,250.98 \0 "" OTHER FINANCING SOURCES (USESj AND SPECIAL ITEMS Transfers out Total ott'Ier fInancing sources and uses and speclalltems Net change in fund balances 12 ,120,774,001 12 ,120,774,001 2,536,00 {2,17Q,774,OO1 \2,170,774,001 (47,464.00) (2,135,156,89 1 (2,135,156,89) 17,404,09 35,617,11 35,817.11 64,868,09 Fund balances -beginning Fund balances -ending $ 199,508,40 202,044.40 199,508.40 $ 152,044,40 199,508.40 $ 216,912.49 $ 64,86S,09 see Independent Auditors' Report City of Cape Girardeau Public Safety Trust Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year E.nded June 30, 2011 Variance with Budlileted Amounts Final Budget· Positive Oni1nal Final Actual Amounts (Nelilstivel REVENUES Investment revenue Total revenues $ 21,900.00 21,900.00 $ 21,900.00 21,900.00 $ 31,942.87 31,942.87 $ 10,042.87 10,042.87 EXPENDITURES Current: Public Safety Total current 3,541.86 3,541.B6 (3,541.861 (3,541.B6) Debt service: \0 00 Administrative charges Interest Principal T mal debt service 500.00 151,156.00 563,992.00 715,648.00 500.00 151,156.00 563,992.00 715,648.00 1,878.46 145,847.15 563,992.00 711,717.61 (1,378.46) 5,308.85 3,930.39 Capital outlay: Capital Improvement Projects Public Safety Total capital outlay Total expenditures 239,441.00 239,441.00 955,089.00 239,441.00 239.441.00 955,OliS.00 1,398.37 232,030.39 233,428.76 948,688.23 (1,398.37) 7,410.61 6,012.24 6,400.77 Excess (deficiency) of revenues over (under) expenditures (933.189.001 \933,189.00) (916,745.36) 16,443.64 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Transfers out Total other financing sources and uses and special items Net change in fund balances Fund balances -beginning Fund balances -ending 2,120,774.00 1',159,38700) 961,387.00 28,198.00 806,999.60 $ 835,197.60 $ 2,145,774.00 (1,184,387.00) 961,38700 28,198.00 806,999.60 835,197.60 $ 2, 135,156.89 (1,166,578.44) 968,578.45 51,833.09 805,999.60 858,832.69 $ (10,617.11) 17,80li.56 7,191.45 23.635.09 23,635.09 See lndependent Auditors' Report City of Cape Girardeau Debt Servk:e Statement of R.venu.... , expenditures, and Changes In Fund BaJancos -Budget and Actual For the Yea, Ended June 30, 2011 Variance with Budgeted Amounts F!na! Budget- Positive Orlgln.' Flna! Actu.! Amounts (Negalive) REVENUES Investment revenue $ 4,420.00 $ 4,420.00 $ 5,184.74 $ 784.74 Total revenues 4,420.00 4,420.00 5,184.74 764.74 EXPENDITURES Debt service: Administrative charges 2,842.00 2,842.00 2,621.50 20.50 Interest 125,992.00 125,992,00 125,992,00 172,000.00 2,132,000.00 2,132,000,00Prtncip.' To!al deb! service 300,834.00 2,260,834.00 2,260,813.50 20.50 'D Total expenditures 300,834,00 2,260,834.00 2,260,813.50 20.50'D Excess (deficiency) of revenues over (under) expenditures (296.414.00) (2,256,414.00) (2,255,628.76) 785.24 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 261,762.00 1,955,282.00 1,955,282.00 Special assessments 33,000.00 33,000,00 33,517.94 517.94 Total other financing sources and uses and speCial items 294,762.00 1,988,282.00 1,988,799.94 517.94 Nel change In fund balances (1,632.00) (268,132.00) (266,828.82) 1,303.18 Fund balances -beginning 289,063.86 289,063.86 289,063.86 Fund balances -ending $ 287,431.88 $ 20,931.8~ 22,235.04 $ 1,303.18 See Independent Auditors' Report. City of Cape Girardeau General Capital Improvements Statement of Revenues, Expenditures, and Cfulnges in Fund Balances ~ Budget and Actua~ For the Year Ended June 30, 2011 OrIginal Budgeted Amounts Final Actual Amounts Variance with Final Budget· Positive (Nogative) REVENUES Intergovernmental Investment revenue T<>tal revenues $ 6,000,00 6,000.00 $ 6,000.00 6,000.00 $ 92,978.53 4,111.13 97,089.66 $ 92,978.53 (1,888.87) 91,089.66 -0 0 EXPENDITURES Capftal outlay: Capital Improvement Projects Total capftal outlay Total expenditures Excess (deficiency) of revenues ever (under) expenditures 6,000.00 6,000,00 137,817.44 137,817.44 137,817.44 (40,727.78 1 (137,817.44) (137,817.44) (137,817.44) __(46,727.78) OTHER FINANCING SOURCES (USES) AND SPECIAL tTEMS Transfers in Total other financing sources and uses and speCial items Net change in fund balances 6,000.00 6,000.00 00,000.00 60,000.00 19,272,22 60,000.00 60,000.00 13,272.22 Fund balances -beginning Fund balances -ending 196,926,95 $ 202,926.95 196,926.95 $ 202,926.95 196,926.95 $ 216,199.17 $ 13,272.22 See Independent AuditorS' Report. City of Cape Girardeau Street Improvements Statement of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual For the Year Ended Juno 30, 2011 Variance with Budgeted Amounl$ Final Budget ­ Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue $ 6,800,00 $ 6,800,00 $ 6,689.59 $ (110.41) Total revenues 6,800.00 6,800,00 6,689,59 (110.41) EXPENDITURES Total_ndftures Excess (deficiency) of revenues over {under} expenditures 6,800,00 6,800,0~ ____6,689.59 (11041) :; OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS -Special Assessments 13,700,00 13,700,00 10,489.78 (3,210,22) Total other financing sources and uses and spacial items 13,700.00 13,700,00 to,489,78 (3,210,22) Net change In fund balances 20,500,00 20,500,00 17,t79.37 (3,320,63) Fund balances ­beginning 37,553.41 37,553.41 37,553.41 Fund balances ­ending -­S 58,053,'!!.. $ 68,053,41 $ 54,732.78 __ (3,320,63) See Independent Auditors' Report. City of Cape Girardeau Park Improvements Statement of Revenues, Expenditures. and Changes In Fund Balances ~ Budget and Actual REVENUES Intergovernmental Investment revenue Total revenues EXPENDITURES Debt service Interest Total debt service ;; capital outlay t,,) Capdallmprovement ProJects Tolal capital outlay Total """"nddu,•• Exces. (defiCiency) of revenue. over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfer& in Total other financing sources and uses and special items N.t change in fund balances Fund balances -beginning Fund balances -ending For the Ye.r Ended June 30,2011 Origlna' Budgeted Amounts Final Actual Amounbt $ $ $ 20,503,05 161.83 20,664.88 3,111.66 3,111,66 65,000,00 65,000,00 65,000,00 64,873,15 64,673.15 67,984,81 (65,000.00) (47,319,93) $ (75,454,71 J (75,454,71) $ 5,000,00 5,000,00 (60,000.00) (75,454,71 1 (135,464.71) $ 114,816,85 114,816,85 67,496,92 (75,454,71) (7,957,79) Variance with Flnal Budget ­ Positive (Negative) $ 20,503.05 161.83 20,664,88 (3,111,66) (3,111.66) 126,85 126.85 (2,984.81) 17,680,07 109,816.85 109,816.85 127,496,92 $ 127,496.92 Cit)' of Cape Girardeau Community Development Block Grant Projects Statement of Revenues, Expenditures, and Changes in Fund Balances ~ Budget and Actual For the Ye.r Ended June 30. 2011 Original Budgeted Amounts Final Actual Amounts Varlant:G with Final Budget· PosItive (Negative) REVENUES Intergovernmental Investment revenue $ $ $ 399.999.94 949.81 $ 399.999.94 949.81 Total revenues 400,949.75 400.949.75 -0 w EXPENDITURES Cu"",nt: Development Services Total current Debl service: Interest Tolal debt service Totalexpendi1lJms Excess (deficiency) of revenues over (under) expendRures 405,000.00 405,000.00 405,000.00 (405,000.00) 400,340.44 400,340.44 295.00 295.00 400,635.44 314.31 4.659.56 4,659.56 (295.00) (29500) 4.364.56 405.314.31 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Transfers out Total other financing sources and uses and special items 325.00 (218.1'1 106.B9 325.00 (216.11) 106.89 Net change in fund balances (405,000.00) 421.20 405,421.20 Fund balances ­beginning Fund balances ­ending 36,740.64 $ 36,740.64 $ 36,740.64 (368,259.36) 36,740.64 $ 37,161.64 $ 405,421.20 See Independent Auditors' Report. City of Cape Glrard.au Transportation Sal •• Tax Trust Fund IV Statement of Revenues j Expenditures. and Changes in Fund Balances -Budget and Actual Forthe Year Ended June 30,2011 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget ­ Positive (Negative) REVENUES Taxes Intergovernmental Investment revenue Total revenues $ $ $ 1,694,721,60 30,000.00 5,966.70 1,730,708.30 $ 1,694,721.60 30,000.00 5,986.70 1,730,706.30 EXPENDITURES Current Development Services T0101 cunent-7,047.13 7,047.13 (7,047.13) (7,047.13) 0 -I'> Oebt service: Interest Total debt ,.rv"", 5.19 5.19 (5.19) (5.19) Capital ouHay: Capital improvement projects Total capital ouflay Total expenditures 150,000.00 150,000.00 150,000.00 270,867.42 270,667.42 277,919.74 (120,667.42) (120,867.42) __(127,919.74) Excess (deficiency) of "",enue. OYer (under) expendltures (150,000.00) 1,452,788.56 1,602,788.56 Fund balance. -beginning Fund balances -ending $ $ (150,000.00) $ 1,452,788.56 $ 1,602,788.56 City of Cape Girardeau Park Storm Water Sales Tax Statement of Revenues, Exp&ndlturGS, and Changes in Fund Balance, -Budget and Actual For the Year Ended June 30, 2011 Variance with BUdgeted Amounts Flnol Budget· PosUive Original Final Actu~l Amo~!,,1;s__ (N"IIatlvo) REVENUES Taxes $ 1 ,062.160.00 $ 1.062,160.00 $ 1,111,SOO.62 S 49.420.62 Investment revenue 3,000.00 3,000.00 20,483.07 17,483.07 Total revenues 1,065,180.00 1,065,180.00 1,132.063.S9 66,903.69 EXPENDITURES Capital outlay: Parks and Recreation 100,000.00 100,000.00 100,000.00 Total capital outlay 100,000.00 100,000.00 100,000.00 -0 v. Total expenditures Excess (deft"e",,>,) of ",venues over (under) expenditures 100,000.00 965,180.00 100,000.00 965,180.00 1,132,063.S9 100,000.00 166,903.69 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out Total other financlng sources and uses and special items Net change in fund balances (1.015,245.00) (1,015,245.00) (50,065.00) (1,115,245.00) (1,115,245.001 (150,065.00) (1,215,245.001 P,215,245.001 (83,161.31) (100,000.00) (100,000.00) 66,903.69 Fund balances ­beginning Fund balances ­ending $ 295,821.43 245,756.43 $ 295,821.43 145,756.43 $ 295,821.43 212,S60.12 $ 66,903.69 See Independent Auditors' Report city of Cap$ Girardeau Park Storm Water Salas Tax..capital Statement of Revenues, Expenditures, and Changss in Fund Balances -Budgat and Actual For tha Va.r Endad Juna 30, 2011 Variance with Budgeted Amounts Final Budget- Positive ~lnal Final Actual Amounts (Negative) REVENUES Taxes $ 3,186,500.00 $ 3,166.500.00 $ 3,334,801.83 $ 148,301,83 Investment revenue 4,500.00 4,500.00 33,979.62 29.479.62 Total revenues __3,191.000.00 3.191,000.00 3,368.781.45 177.781.45 I!XPENDITURES Debt service: Admimstrative charges 5,000.00 5.000,00 3.657.50 1,342.50 Interest 652,756,00 652,756.00 652,756,26 (0.26) Princ1pal 1,835.000.00 1,835.000.00 1,835.000.00 Tolal debt service 2.492,756.00 2,492.756.00 2.491,413.76 1,342.24 0­ 0\ Capital outlay: Parks and Recreation 132,651.00 132,651.00 123,275.81 9,375.19 Tolal capital ovtlay 132,651.00 132,651.00 123,215.81 9,375.19 Total expenditures 2.625.407.00 2,625,407.00 2,614.689.57 10.717.43 Excess (deffel.ncy) of revenues over (under) expenditures 565,593.00 565,593.00 754.091.88 188.498.88 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 136.534.74 136.534.74 Capital ouHay (5,460.18) (5,460.18) Transfers out (662,954.00) (662,954.00) (148.531.821 514,422.18 Total other financing sources and uses and special items !662,954.00) (862,954.00) (17,457.26) 645,496.74 Net change in fund balances (97,361.00) (97,361.00) 736,634.62 833,995.62 Fund balances beglnning 688,572.42 868,572.42 688,572.42 Fund balances -ending $ 591,211,42 $ 591.211.42 $ 1,425,201.04 S 833,995.62 See Independent Auditors' Report City of Cape Glrarde.u Housing Development Grants StaWment of Revenues. Expendltures, and Changes In Fund Balances ~ Budget and Actual For tha Year Ended June 30, 2011 Original Budgeted Amounts Final Act'!41 Amounts Variance wlth Final Budget­ POSitJV8 (Negative) REVENUES Intergovernmental Investment revenue $ 648,159.00 $ 648,159.00 $ 541M2.54 105.10 $ (107,076.66) 105.10 Total revenues 648,159.00 648.159.00 541,181.44 (106,911.56) EXPENDITURES Current: Development ServiceS 648,159.00 153,159.00 730.295.40 22,863.60 Total current 648,159.00 753,159.00 730,295.40 22,863.60 Debt service: Interest 4,802.33 (4,802.33) 0 ~ Total debt service 4.802.33 (4.802.33) '" Total expenditures 648,159.00 753,159.00 135,097.73 18,061.27 Excess (deffdency) of revenues over (under) expenditures _(105,000.OQ) _ -.1193.910,29) _(88,910.29) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 25,000.00 18,161.22 (6,212.78) Total other financing sources and uses and special items 25,000.00 18,781.22 (6.212.76! Net change in fund balances (80,000.00) (175,123.01) (95,123.07) Fund balances -beginning (625.72) (825.72) (825.72) Prior period adjustment (1,558.80) (1,558.80) (1,558.50) Fund balances -ending $ (2,384.22) $ (82.354.22) $ _(171.507.29) _$_\95,123.07) See Independent Auditors' Report. City of Cape Girardeau Casino Revenue Statement of Revenues, Expenditures, and Changes In Fund Balances -Budget and Actual for the Yoar Ended June 30, 2011 Budgeted Amounts Original Final Actual Amounts REVENUES Investment revenue Total revenues EXPENDITURES Total expenditures Excess (defidency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS o Asset disposition 00 Spedal H:em Transfers in Transfers out $ $ $ 8.674.26 8.674.26 8.674.26 250.791.00 1.628,343.32 (2.000.000.00) (1.679.134.32l Variance with Final Budget .. Positive !N!!jallv., $ B.674.26 8,674.26 250,791.00 1.626,343.32 Total other finandng sources and uses and special items (2.000.000.00) 2,000.000.00 Net change in fund balances (2.000.000.00) 8.674.26 2,008,674.26 Fund balances ­beginning Fund balances ­ending $ $ (2.000.000.00) $ 6.674.26 $ 2.006,674.26 See Independent Audilors' Report. 8.674.26 120.865.68 City of Cape Girardeau FAU Grant Projects Statement of Revenue•• Expenditure•• and Changes In Fund Balance. -Budget and Actual For the Year Endod June 30. 2011 BUdgeted Amounts Variance with Final Budget ­ REVENUES Inte!governmental Investment revenue Total revenues EXPENDITURES Capital outlay: Capital Improvement Projects Total capital outlay -Total expenditures ~ Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances -beginning Fund balances -ending Original $ 516,158,94 $ 516,158,94 Final $ 75,000.00 75,000,00 75,000,00 175,000 00) (75,000.00) 516,158,94 $ 441,158.94 Actual Amounts $ 44,422,20 13,449,82 57,872.Q2 56,314,12 56,314,12 56,314,12 1,557.90 1,557,90 516,158,94 $ 517,716,84 Positive (Negative) $ 44,422,20 13,449,82 57,872.02 18,685,88 18,685.88 18,685,88 76,557.90 76,557,90 $ 76,557,90 See Independent Auditors' Report. City of Cape Girardeau Sewer Statement of Revenues. expenditures, and Changes In FUnd Balances -audget and Actual For the Year Ended June 30, 2011 Varlante with Budgeted Amounts Final Budget .. Positive Orl9.lnal Final Actusl Amounts (Nesative) REVENUES Intergovemmental $ $ $ 56,996,53 $ 56.996,53 Residential charges 1.916,250.00 1,916,250.00 1.906.560,51 fI.669".) Commercial charges 1.323.750,00 1,323.750,00 1,269,832..46 (53,917,54) Other rees and charges 54,600,00 54,tIOO,OO 52,797,18 (1,802,62) Inlemal charges 7,315.28 7,315.28 Miscellaneous 50MO 500,00 613.19 313.19 Investment revenue 265,526,00 285,528.00 320,838.61 35,310.61 Teta! revenues 3.560.626,00 3,560,626.00 3,817,153,76 36,525,78 EXPENDITURES Current: Contractual services 438,419.00 1.671.975,15 1,716,611.51 (48.836,36) General operating expenses 212.531,00 214,005.24 203,376.04 10.629.20 Internal service expense 100,676,00 190,676.00 165,997.65­24,678.35 Material and SUpplies-4ea.971 ,00 516.220.61 465,365,26 52.635,35 Personnel services 1,583,365.00 1,5-83,365.00 1,574,oea,16 9,278,84 Special projects expense 25.000.00 25.000.00 15.650,70 9,1A9.30 Tolal current ?,~1E),962.~ 4,203.242.00 4.143,507.32 59,734.68 Debt service: Administrative charges 98.443,00 96.443.00 98,721.29 (278,29) Interest 47a.o17,00 476.017.00 (lB5.075,35) 643,092.35 Princlpai 1.563,074,00 1.563,074.00 2,199,500,00 (636,428.00) Total debt 5ervjce 2,139,534.00 2,139,534,00 2,133,145.94 B.38US Capital ouUay: Capital Improvement Projects 140,000.00 132,754.94 7,245.06 Equipment 312,150.00 312,150,00 264,571,85 47,578.15 Other Capital Expenditures 235,000.00 95,000,00 17,038.00 77,962.00 iotal capital outlay 547,150.00 547,150.00 414,364.79 132.785,21 lotal expenditul'e$ 5.605.646,00 6,869,926,00 6,691,018.05 198,907,95 Excess{def~eocy)ofrevenues over (under) expenditures {2.025.016.0°1 (3,309.208,001 (3,073,664.20) 235,433.71 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfer:; in 1.955,799,00 4,469,499,00 4,505,460.69 35,961.69 ConnedJon fees 8s.o00,00 65,000,00 69.676.61 (15.323,19) $peciai assessments 5.000,00 5,000.00 12.714.57 7,774,87 Asset disposition 65,329,00 85,320.00 72,022.52 (13,30848) Transfers out (3.500,00) (3,500,00) Total other fmancing SIXIrces and I,.ISe$ and speCial items 2,131,125.00 4,644,828.00 4.B56.434J'9 11,606,89 Net change in fund balances 108,110.00 1,335.530.00 1,582,570,60 247,040.60 Fund balances ­beginnIng Fund balances ­ending 580,931_32 $ 6a7,041.32 580,931.32 • 1,916,461.32 $ 580,931.32 2,163,501.92 $ 247.040,60 See Independent Auditors' Report. City of Cape Girardeau Watsr Statement of Revenues. Expenditures, and Changes in Fund Balances .. Budget and Actual For the Year Ended June 30. 2011 Variance with Budge~d Amounts Final Budgel- Posltlve Oni-lnal Final Actual Amounta {Negative) REVENUES 1ntergovemmental $ $ $ 119,255.41 $ 119,255.41 Residential charges 3,613,500.00 3.613,500,00 3,660,97H3 47,47293 Commercial charges 2,521,000.00 2,521,000.00 2,550,030.63 29,030.63 Other fees and charges 164.350.00 184,350.00 163,537.72 (20,812.28) Miscellaneous 16,660,00 16,880.00 18,116.73 1,236.73 Investmenl revenue 1....000.00 144,000.00 167,600.93 23,600.93 r atal revenue& 8.479,730.00 6,479,730.00 6,679.514.35 199,784.35 EXPENDITURES Current Contractual services 2,674,297.00 2.805,076.26 2,&69,707.52 (64,631.26) General operating expenses 362.299.00 363,129.00 340,198.62 22,930.38 Internal setvice expense 96,859.00 96,659.00 101,852.88 (4,993.88) Material and supplies-Personnel services--1,287,092.00 133.572.00 1,275,572.74 201,412.00 1,160,574.39 146,119.94 114,9'98.35 55,292.06 Special projects expen&e 115,000.00 115,000.00 2$4,045,{}6 (139,045.06) Total current 4,649,119.00 4,857,049.00 4,872,498.41 (15.449,41) Debt seI'Vice; Admlnis1rative charges 300.00 300.00 470.25 (170.25) Interest 143,800,00 143,800.00 143,800,00 Principal 925.000.00 925,000.00 925,000,00 Total debt service 1,069,100.00 1,069,100.00 1,069,270.25 1'70.25) Capltal ouHay: Capita~ Improvement Projects 318,348.00 318,348.00 267,738.34 50,609.66 Equipment 107,225.00 59,895.00 49,454.76 10,440,24 Total capital outlay 425,573.00 378.243.00 317,193.10 61,049.90 Talai expenditures 6,143,792.00 6,304,392.00 6,258,961.78 45,430.24 Excess (deficiency) of revenUes over (under) expenditures .3,35.9;38.00_ 1??,338-.:90 .,,20,552.59 245,214.59 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 6,290,02 6.290.02 Investment revenue 600.00 600.00 676.65 76.65 Special assessments 1,800.00 1,600.00 4.086.51 2,466.51 Asset disposition 9.125.00 9,125.00 23.59435 14,469.35 ToW other financing sources and uses and sped<ill Items 11,325.00 11.325.00 36,627.53 25,302.53 Ne1 change in fund balances 347.263.00 186,863.00 457,180.12 270,517.12 Fund balances ~~ beginning 5,836,662.22 5,636,662.22 5,836,662.22 Fund balances ­ending $ 6,183.925.22 $ 6.023,325.22 $ 6,293,842,34 $ 270.517.12 See Independent Auditors' Report. City of Cape Girardeau Solid Waote Statement of Revenues, ExpendltunJs. and Changes in Fund Balances· Budget and AetuaJ For the Yoar Endod June 3D, 2011 Variance with Budgeted Amounts Final Budget ­ Pos.ltJV9 O,lglnal Final Actual Amounts (N.~.t1v.) REVENUES Intergovernmental $ 15.882.00 $ 15.882.00 $ 1.319.51 $ (14.562.49) Residential charges. 2.115.000.00 2.115.000.00 2, 133.133.92 18.133.92 Commercial charges 31.500.00 31.500.00 32.509.59 1.009.59 Transfer station charges 964.100.00 964.100.00 863.105.19 (101.594.81) Other fees and charges 85.200.00 85,200.00 84,117.95 (1.022.05) Miscellaneous 18.000.00 18.000.00 23.925.44 5,925,44 Investment revenue 22.500.00 22.500.00 41.519.01 19,019.01 Total revenues 3,252.782.00 3.252,782.00 3,180.290.67 __(72,491.33) EXPENDITURES = Current Conlractual services-General operating expenses-1.312.931.00 34.116.00 1.367.518.88 34,676.00 1,292.863.78 32.268.51 14,115.10 2.407.43 N Interna! serviCe expense Material and supplies 199.414.00 170,640.00 199,414.00 250.862.12 240.213.26 231.397.26 (40.199.26) 19,465.46 Personnel services 1.055.031.00 1,055,031.00 1,031,590.64 17.440.46 Special projecls expense 98.500.00 94,085.40 19.333.43 14,151.91 Total current 2,870.698.00 3.001.648.00 2,913.666.84 87,981.16 Debt service: Administratlve charges 261.25 (261.25) Interest 77,321.00 17,327.00 37,521.26 39,805.14 Prindpaf 192,451.00 192,451.00 218,690.15 (26,239.15) Total debt .ervice 269.77B.OO 269,778.00 256,472.66 13,305.34 Capital outlay: Equipment 147,950.00 92,000.00 93,170.30 11,170.30) Total capital outlay 147,950.00 92.000.00 93,170.30 (1,170.30) Total expenditures 3,288.426.00 3.363,426.00 3,263,309.80 100.116.20 Excess (deficiency) of revenues over (uoder) expenditures (35,644.00) __(110,644.00) (83,019.13) 27.624.81 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Asset disposition 8,300.00 8.300.00 17,538.12 9,238.12 Total other financing sources and uses and specialltems 8.300.00 8,300.00 17,538.12 9,238.12 Net change in fund balances (27,344.00) (102.344,00) (65,481.01) 36,862.99 Fund balances ~ beginning 1.059.219.32 1,059,219.32 1.059,219.32 Fund balances -ending $ 1.031.875.32 S 956.875.32 S 993,738.31 S 36,862.99 See Independent Auditors' Report. City 01 Cape Girardeau GolfCou",e Statement of Revenues, Expenditures, and Changes In Fund Balances· BUdget and Actual For the Year Ended June 3D, 2.011 Variance with Budgeted Amounts Final Budget ~ Positive Original Final Actual Amounts (Negative) REVENUES User fees $ 458.200,00 $ 458,200.00 $ 447,242,45 $ (10,957.55) Concession revenues 28,700.00 28,700.00 36,360,63 7,660,63 Miscellaneous 1,546,15 1.546,15 Investrnentrevenue 1,500.00 1,600,00 1,368,04 (131.96) Total revenues 488,400,00 488.400.00 486,517,27 (1,882.73) EXPENDiTURES Current: Contractual services 20,125.00 24,587,00 24,004,62 582,18 General operating expenses 8.840,00 7,606,00 6.968.06 (1,160,08) --Internal service expense Material and supplies 49,359,00 79.977.00 53.659.00 106.167,00 46,965.49 95.428,44 6.893,51 10,738,56 w Personnel services 365,906.00 377,406.00 379,890.23 (2,484,23) Special projeets expense 9,700,00 9.700,00 8.836,10 663,90 Total current 533.907,00 579.507,00 554.093,16 15,413,84 Debt service: Interest 10,563,00 10,563.00 10,562.32 0.68 Principal 26,704.00 26.704.00 26,704.24 (0.24) Total debt senrice 37.267.00 37,267.00 37,266.56 0,44 capital outlay: Capital improvement projects 1,185.76 (1,185.76) Total capital outlay 1,165.76 (1,185.76) Total expend~ur.s 571.174.00 616.774.00 602.545.48 14.228.52 Excess (deficiency) of revenues over (under) expenditures (82,774.0ill _(128.374,OOL (116,028,21) 12.345,79 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 82.774.00 82.774,00 105,412.09 22,638.09 Asset disposition 13,548.90 13.548.90 Total other financing sources and uses and special items 82.774.00 82,774.00 118.960,99 36,196.99 Net change in fund balances (45,600.00) 2.932.76 48,532.78 Fund balances -beginning 11,582.01 11.562,01 11,562.01 Fund balances ­ending 11,~2.01 $ (34.037,99) $ 14,494.79 $ 48,532,78 See Independent Auditors' Report, City of Cape Glrarde.u Softball Complex Statement of Revenues, expenditures, and Changes in FUnd Salances • Budget and Actual For the Year Ended June 30, 2011 Variance with BUdgf1ted Amounts Final Budget. Positive Original Final Actual Amounts (N!!!"tl",,! REVENUES Intergovernmental $ $ $ 311.95 $ 311.95 User fees 125,230.00 125,230.00 152,984.05 27,754.05 Concession revenues 52,955.00 52,955.00 54,935.11 1,980.11 Inlemal chal1jes 3,715.65 3,715.65 Miscellaneous 7,500.00 7,500.00 6,851.01 (648.99) Investment revenue 600.00 600.00 992.23 392.23 Tetal revenues 186,285.00 186,285.00 219,790.00 33,505.00 EXPENDITURES Current Contractual services 29,257.00 24,257.00 10.527.77 13,729.23 General operating expenses 2,865.00 2,865.00 12,777.43 (9,912.43) --.j:,. Internal service expense Material and supplies Per&Onnel services 29,380.00 88,524.00 472,035.00 29,380.00 121,924.00 472,035.00 24,488.67 126,875.66 444,626.34 4,891.33 (4,951.66) 27.406.66 Special projects expense 17,908.00 17,908.00 35,723.90 (17,615.90) Total current jl39,969J)0 658,369.00 655,019.77 13,349.23 Debt_: Interest 7,750.00 7,750,00 7,75D.43 (0,43) Principal 16,626.00 16,626.00 16,625.47 0.53 Total debt service 24,376.00 24,376.00 24,375.90 0.10 Capital outlay: Capltal improvement projects 3,117.22 (3,117.22) TOIaI capital outlay 3,117.22 (3,117.22) Total expenditures 654,345.00 692,745.00 682,512.89 10,232.11 Excess (deficleney) of revenues over (under) expenditures (478,060.001 (508,460.00) (482,722.89) 43,737.11 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In 478,060.00 493,060.no 465,918.43 (26,141.57) Asset disposition 760.00 760.00 Transfers out (4,565.65) !4,585.65) Tolal other finanCing sources and uses and speclalltems 478,060.00 493,060.00 463,112.78 (29,947.22) Net change in fund balances (13,400.00) 389.89 13,769.69 Fund balances ­beginning 2,716.34 2,716.34 2,716.34 Fund balances _ ending $ 2,716.34 $ (10,663,65) $ 3,106.23 $ 13,789.89 See Independent Audilors' Report, City of Cape Girardeau Management Information Syste-ms Statement of Revenues, Expenditures.. and Changes In Fund BalanCH * Budget and Actual For thG Year Ended Juno 30, 2010 Varlanco with Budgeted A",ounl$ _ Final Budget • Positive Original Final Actual Amounts (Negative) REVENUES Internal charges $ 400,000.00 $ 400,000.00 $ 396,125.00 $ (1.615.00) Investment revenue 2,100.00 2,100.00 2,80S.43 105.43 Tolal revenues 402,100.00 402,100.00 400,930.43 (1,169.S7) exPENDITURES Current Contractua! services 123,881.00 130,381.00 112,670.14 17,710.66 General operating expenses 3,315.00 3,375.00 606.37 2,766.63 Material and suppfJes 11,250.00 21,695.00 21,922.32 (227.32) Personnel services 142,714.00 142,714.00 135,364.49 7,349.S1-Total current 281,220.00 298,165.00 270,563.32 27,601.68-V'> Capital ouUay: Equipment 121,000.00 104,055.00 86,414.98 17,640.02 Total capital ouUay 121,000.00 104,055.00 86,414.98 17,640.02 Total expenditures 402.220.00 402.220.00 356.978.30 45,241.70 Exeess(deficiency)ofrevenues over (under) expenditures (120.00) (120.00) 43.952.13 44.072_13 Net change in fund balances (120.00) (120.00) 43,952.13 44,072.13 Fund balances -beglnnlng 113,573.45 113,573.45 113,573.45 Fund balances -ending $ 113,453.45 $ 113,453.45 $ 157.52S.S6 $ 44.072.13 CI'Y of Ca"" Girardeau FIeilt Management Statement of Revenues, Expenditures. and Change. in Fund Balances .. Budget and Actual For the Year EndtKI June 30. 2011 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget- PosItive (Negative! REVENUES Intergovernmental Internal charges Miscellaneous Investment revenue $ 1.166.500.00 4.500.00 $ 1.166.500.00 4.500.00 $ 765.00 1.186,474.64 20.00 4.604.29 $ 765.00 19,974.64 20.00 104.29 Total revenues 1,171.000.00 1.171,000.00 1.191.863.93 20,863.93 ..... ..... '" EXPENDITURES Curren!: Contractual services General operating expenses Intemal service expense Material and supplies Personnel services Total current 217,354.00 4,850.00 3.992.00 291.632.00 600,918.00 1.124,746.00 208,804.00 4,850.00 3.992.00 346.729.00 609.918.00 1,174.293.00 220.696.22 4.770.06 3.992.00 345,983.16 605.732.50 1.161.173.94 (11,892.22) 79.94 745.84 4.185.50 (6,880.94) Debt service: Interest Total debt service 226.56 226.56 (226.56) (226.56) Capital outlay; Equipment Other capltal expenditures 39.000.00 36.753.00 3.200.00 7,753.00 3.179.00 29.000.00 21.00 Tolal capital oullay Total expenditures Exoess(defiaency) of revenues over (under) expenditures 39.000.00 1,163.746.00 7.254.00 39,953.00 1.214,246.00 143.246.00) 10.932.00 t.192.332.50 (466.57) 29.021.00 21.913.50 42.777.43 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Asset dIsposition Transfers out Total other finanCing sources and uses and &pe<:ial items Net change In fund balances Fund balances -beginning Fund balances -ending (19.288.00) (19.268.00) (12,014.00) 45.115.07 $ 33.101.07 = $ (19.266.00) (19.266.001 (62.514.00) 45,115.07 (17.398.93) 18.047.99 (14,814.41 1 1.233.58 765.01 45.115.07 $ 45.680.08 16.047.99 4.453.59 20.501.58 63.279.01 $ 83.279.01 See Independer1t Auditors' Report. City 01 Cape Girardeau Fringe Benellls Statement of Revenues, Expenditures, and Changes In FUnd Balances -Budget and Actual For tho Year Ended June 30, 2011 Variance with Budgeted Amounts Final Budget. Positive Original Final Actual Amounts (Negative) REVENUES Internal charges $ 3,351,000.00 $ 3,351,000.00 $ 3,010,839.28 $ (340,160.72) Miscellaneous 1,187.90 1,187.90 Investment revenue 19,500.00 19,500.00 50,866.87 31,366.87 Total revenues 3,370,500.00 3,370,500.00 3,062,894,05 (307,605.95) EXPENDITURES CUrrent: Contractual services 3,370,500.00 3,310,500.00 2,688,568.23 701,931.77 Total current 3,370,500.00 3,370,500,00 2,668,568.23 701,931.77--'" Total expenditures 3,370,500,00 3,370,500.00 2,668,568,23 701,931.77 Excess (defldency) of revenues over (under) expenditures --_.__. _ ~94,325,82 394,325,82 Net change in lund balances 394,325,82 394,325.82 Fund balances -beginning 1,375,827.37 1,375,827,37 1,375,827.37 Fund balances -ending $ 1,375,827,37 $ 1,375,827.37 $ 1,770,153,19 $ 394,325.82 See Independent Audito"" Report. City of Cape Glrarde.u Rlsk Management Statermmt of Revenues, expenditures, and Changes in Fund Balances ~ Budget and Actual For the Year Ended June 30, 2011 Variance with Budgeted Amounts Flnol Budget. PO$ltlve Orlglnal Final Mtusl Amounts !N·llalive) REVENUeS Intemal charges Investment revenue Total revenues $ 522,894,00 35.550.00 558.444.00 $ 522,894.00 35,550.00 558.444.00 $ 532.830,03 42.281.78 575.111.81 $ 9.936.03 6.731.78 16.667.81 -00 EXPENDITURES Current: Contractual services General operating expenses Material and supplies To1a1 CUll1!f1t Total expenditures Excess (deflciency) of revenues ovet (under) expenditures 523,944.00 32,000.00 2,500.00 558,444.00 558,444,00 523.944.00 32,000.00 2,500.00 558,444.00 558.444.00 155.751,04 29,122,84 184.873.88 184,873.88 390,237.93 368.192.96 2,877.16 2,500.00 373.570,12 373,570.12 390,237.93 Net change in fund balances 390,237,93 390,237.93 Fund balances .~ beginning 989,112.05 989.112.05 989,112.05 Fund balances ­ending $ 989,112.05 $ 989,112.05 $ 1,379,349.98 $ 390,237.93 City of Cape Girardeau Equipment Replacement Statement of Revenues. Expenditures. and Changes In Fund Balances .. Budget and Actual For the Vear Ended June 30, 2011 Variance with Budgeted Amounts Final Budget. Positive Original Final Actual Amounts (Negalive) REVENUES Inlemal charges $ 277,003.00 $ 277,003,00 $ 275,797.45 $ (1,205,55) Investment revenue 30,000,00 30,000,00 29,133,51 (866,49) Total revenues 307,003.00 307,003,00 304,930,96 (2,072,04) EXPENDITURES Debt servtce: Interest 4,250,00 4,250,00 Principal 40,000,00 40,000,00 Total debt service 44,250,00 44,250,00--'C> Capital outlay: Equipment 185,516,00 214,817,72 209,351,97 5,465.75 T otai caPilal outlay 185,516,00 214,817,72 209,351,97 5,465.75 Total exp.nd~u",. 185,516,00 259,067,72 253,601,97 5,465,75 Excess (deficiency) of revenues over (under) expendilares 121,487,00 47,935,28 .51,328,99 3,393,71 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 27,000,00 27,737,17 737,17 Asset disposition 22,400,00 22,400,00 (22,400,00) Trans!ers out (10,698,28) (10,698,26) Total other financing sour<:es and uses and special items 22,400,00 38,701,72 17,038,89 (21,662,83) Net change in fund balances 143,667,00 86,637,00 66,367,88 (18,269,12) Fund balances -beginning 963,983,88 963,983,68 963,983,68 Fund balances -ending $ 1,107,870,88 $ 1,050,620.68 $ 1,032,351,56 _$__ (18,269,12) ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants 1018 Sycamore :airo, illinois 62914 re1ephone(618) 734-3300 i'acsimi1e (618) 734-3303 16 South Silver Springs Road Cape Girardeau, Missouri 63703 Telephone (573) 334-7971 Facsimile (573) 334-8875 105 South Hope Jackson, Missouri 63755 Te1ephone(573) 243-3991 Facsimile (573) 243-3186 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON 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 City of Cape Girardeau, Missouri's compliance, with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City of Cape Girardeau, Missouri's major federal programs for the year ended June 30, 2011. The 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 the City of Cape Girardeau, Missouri's management. Our responsibility is to express an opinion on the 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-!33 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City 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 the 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 compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 20 II. 120 Internal Control Over Compliance Management of the 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 the 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 to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance "'lith OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Cape Girardeau, Missouri's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 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 & STRODER, L.L.C. ~,I~, !t1e ""~' l.L.C. Cape Girardeau, Missouri December 23, 2011 121 BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants 16 South Silver Springs Road 1018 Sycamore 105 South HopeCape Girardeau, Missouri 63703 :::airo, Illinois 62914 Jackson, Missouri 63755 felepbone(618) 734-3300 Telephone (573) 334-7971 Telepbone{S73) 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 OrnER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING 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 the City of Cape Girardeau, Missouri as of and for the year ended June 30, 2011, which collectively comprise City of Cape Girardeau, Missouri's basic financial statements and have issued our report thereon dated December 23, 201 L 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 deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's fmancial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identifY all deficiencies in internal control over financial reporting that might be deficiencies, 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. 122 Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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, and 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 & STRODER, L.L.c. ~~,/&t '1~,U .. c.. Cape Girardeau, Missouri December 23, 2011 123 City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2011 Federal GT8qJor(Pfiss~Through Grantor Program Title US. DEPARTMENT OF DEFENSE: Loan of DOD Property (non-cash) \.:.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: Passed Through Missouri Department of Economi(: Development ~ Community Development Block Grants! State's Program and Non~F..ntitiement Grants in Hawaii Passed Through Missouri Department of Social Services ~ Emergency Shelter Crrants Program Passed 1hrough Missouri Housing Development Commission ­ Home lnvCS1ment Partnerships Program TOTAL U.S. DEPARn1ENT OF HOUSING A.ND VRllAN DEVELOPMENT U.S. DEPARTMENT OF THE INTERIOR: Passed Through Missouri Department of Natural Reso~s- Historic Preservation Fund Grants -In Aid SaVe America's Treasurers TOTAL u.s. DEPARTMENT OF THE INTERIOR Federal CFDA Number 12. 14.221! 14.231 14.239 15.904 15.929 Program Number Disbursements NIA 2004-ND-05 $ 2006-PF-38 2008-DN-30 1 201D-DT-01 200&-DN-<l2 ER0164090l M-09-<lG-29-0IOO 29-09-21831-004 NiA s 100,000 173,164 400,000 311,368 8.790 122,107 $ 1,015,429 29,360 _$_.. 71,869 $ 1,116,658 $ 8,000 50,171 $ 58,171 'The Accompanying Notes to ScneduJe ofExpenditures of Fed em I Awards Are an Integral Part of This Report 124 City of Cape GirArdeau, Missouri SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS For the Year Ended June 30, :WII Federal Granror!pass~Through Granto! Program Title :u S DEf&RTMENT OF JUSTI~~' Passed Through Missouri Department of Public Safety ­ Violence Against Women Formula Grant ARRA-Violen('.e Against Women Formulat Grant BulletproofVesl Partnership Program PWlsed TInough the City of Poplar Bluff, Missouri- Passed through the SOUthellSt Missouri Drug Task force- Public Safety Partnership and Community Policing Grants: JAG Program Ouster: Edward Byrne Memoriailustice Assistanee Grant ARM _EdwiUd Byrne Memorial Justice Assis~Granl Program/Grants "\0 Units of Ux:ru Governments TOTAL 1;.S. DEPARTMENT OF JUSTICE U.S. DEPARTh!ENT OF1RANSPORTATION Passed Through Missouri Department of Transportation· ARRA" Airport Improvement Program Highway Planning and Construction Highway Safety Cluster: State and Community High",1IY Safety Alcohol Impaired DnV!ng COUfltenneasures Incentive Grants 1 TOTAl. U.S. DEPARTMR"'ITOF TRA. ...(SPORTATJON Federal CFDA Number 16.:5BB 16.607 16.710 16,738 16.804 20.106 20.205 20JillO 20601 Program .............~umber Disbursements 201ONAWA·OO11..QS 20()9-VAWA-0002 R2010-VAWA-002-OS , 14,347 18.193 4,436 $ 36,976 NIA 5,119 ~/A 6,149 201{)..DJ-B)(--o5.57 37,456 2009-SB-B9-2229 27,513 L...!J3.213 Og-077A·l DP-~ 503(002) STP·1500(0[4) J010767A DP~[503(003) SRTS·NI-H300(502) SRTS·!NF·H110(002) , 494,126 173,805 60,374 2,522 4,848 $ 98,834 $ 735,675 11~SA-09-2 !1-CP-09-t II-PT..o2.sS IO~SA.oo~l I(;"SA~09.o3 1{)"154~fU...lI1 to~PT-02·112 S 3B,730 55,099 2.282 32,765 26,734 54,593 51714 $ 215,917 11·KS-D3·76 lO-K8'{)3·56 Il-K8-03-77 lO~K8..o3·57 LKK073 LKK081 SAFOO6 SAFOO7 , 7,964 1,844 587 361 1,130 742 997 134 S 13,759 , 1,064,185 The Accompanying Notes '0 Schedule ofExpendllures of Federal Awards Are an Inlegral Plirt ofThis Report 125 City ofCape Girordeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30.2011 Federal CPDA Program Federa! GrantorIPass-Through Grantor Program Ti~.I.~ Number Number Disbursements lltH'IRQt:!MENTAL PRQIECTION A~: Passed Through Missouri Department of Natural Resources ~ ARRA -Capitalization Grants for Drinking Water State RevotvingFunds (1) 60.468 DW291010·03G $ 999,562 ERIO-ARRA·M04010136 ARRA . Brownfields Assessment and Cleanup Cooperative Agreement 66818 NIA TOTAL ENVIRONMENTAL PROTECTION AGENCY illJIEPARlMlONTOf ENERGY: ARRA . Energy Efficiency and Conservation Block Granl Program (EECBG) (I) 81.128 NIA US DEPARTMIlliJ OF HEALTH AND HUMAN SERVICES Passed Through the Community Caring Counsel· Substance Abuse and Mental Health Services- Projects of Regiona! and National Significance 93.243 SDA42070104 l1...S....QEPARTMENT OF HQMELANR SECURITY: Passed Through Missouri Stale Emergency Management Agency- Disaster Grants ~ Public Assistance{Presidentially Deelaced Disasters) 97036 #FEMA·1980-DR·MO Law Enforcemcnl Officer Reimbursement Program: 97.090 HSTS0208HSlR050 Assistance to Firefighters Grant 97044 EMW·2007-FF-()OI76 $ EMW-200K-F0-D9 141 EMW·2009·FO-09319 Passed Through Mtssoun State Emergency Management Agency- Citizen Corps. 97.053 ZOO9-SS-T9·0062 s 201().SS·TO-{1039 TOTAL U.S. DEPARTMENT OF HOMb'LAND SECURITY TOTAL FEDERAL AWARDS (1) Identified major program. 108,405 59,S48 75,451 19,264 19,366 2,510 $ 1,107,967 25,990 $ 1,133,957 $ 187,219 1,612 $ 12,658 35,538 154,563 21,876 $ 3999 6SQ The Accompa.nying Notes to Schedule of Expenditures of Federal Awards Are an Integral Part of This Report 126 ... -~ .. ------------- City of Cape Girardeau, Missouri NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS Year Ended June 30, 2011 1. 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-I33. 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 offederal awards administered by the City. B. Basis of Presentation: The Schedule is presented in accordance ¥,"ith OMB Circular A-l33, which defines federal financial assistance H ••• 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. 127 City of Cape Girardeau, Missouri SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2011 I. SUMMARY 01' AUDITORS' RESULTS: Financial Statements Type of Auditors' report issued: Unqualified Internal control over financial reporting: • Material weaknesses identified? __yes X no • Significant deficiencies identified that are not considered to be material weaknesses? __yes X none reported Noncompliance material to financial statements noted? __ yes X no Federal Awards Internal control over major programs: • Material weaknesses identified? __ yes X no • Significant deficiencies identified that are not considered to be material weaknesses? __yes X 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 5 10ea) of Circular A,I33? __yes X no Identification of major programs. CFDANumber _--,1'Iame of Federal Program 66.468 Capitalization Grants for Drinking Water State Revolving Funds Energy Efficiency and Conservation Block Grant Program (EECBG) 81.128 128 Dollar threshold used to distinguish between type A and type B programs: $300,000 ___ noAuditee qualified as low· risk auditee: -Lyes 2. FINANCIAL STATEMENT FINDINGS: No findings or questioned costs were noted that are required to be reported. 3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: No findings or questioned costs were noted that are required to be reported. 129 City of Cape Girardeau, Missouri SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended June 30, 2011 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 09-1 Noncompliance with Section 67.080. RSMo, no expenditure of public monies should be made unless it is authorized in the budget. Status: Implemented. 130