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HomeMy WebLinkAbout2011-2012.AuditReportCITY OF CAPE GIRARDEAU. MISSOURI Cape Girardeau, Missouri For the Year Ended June 30, 2012 ANNUAL FINANCIAL REPORT BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants CITY OF CAPE GIRARDEAU. MISSOURI FINANCIAL SECTI()t'-l INDEPENDENT AUDITORS' REPORT 1-2 REQUIRED SUPPLEMENTAR Y INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS 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 RECONCIUATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS 25 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 26 RECONCILIATION OF THE STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 27 PROPRIETORY FUNDS FINANCIAL STATEMENTS STATEMENT OF NET ASSETS 28-29 STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN FUND NET ASSETS 30 STATEMENT OF CASH FLOWS 31-32 FIDUCIARY FUNDS FINANCIAL STATEMENTS STATEMENT OF NET ASSETS NOTES TO BASIC F[NANCIAL STATEMENTS 34-81 REQUIRED SUPPLFMENTAL I'lFORylATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -GENERAL 82 STATEMENT OF REVENLES, EXPENDITURES, A~D CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -AIRPORT 83 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -PARK & RECREATION 84 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL TRANSPORTATION SALES TAX TRUST FUND III 85 NOTES TO BUDGETARY COMPARISON SCHEDULES 86-89 SCHEDULE OF FUNDING PROGRESS 90 SUPPLEMENTAL INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES TN FUND BALANCES -BUDGET AND ACTUAL -VISION 2000 91 STA TEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL CONVENTION AND TOLTRISM 92 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -DOWNTOWN BUSINESS DISTRICT 93 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL HEALTH 94 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGI:;:S IN FUND BALANCES -­BUDGET AND ACTUAL MOTOR FUEL TAX 95 STATEMENT OF REVENUES. FXPENDITI lRFS. AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL CAPITAL IMPROVEMENT SAI,ES TAX FLOOD CONTROL 96 STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL--CAPITAL IMPROVEMENT SALES TAX WATER SYSTEM IMPROVEMENTS 97 STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL TRANSPORTATION SALES TAX TRUST FUND 98 STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -CAPITAL IMPROVEMENT SALES TAX SEWER SYSTEM IMPROVEMENTS 99 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -TRANSPORTATION SALES TAX TRUST FUND II 100 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -FIRE SALES TAX 101 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -PUBLIC SAFETY TRUST 102 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -DEBT SERVICE 103 STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -GENERAL CAPITAL IMPROVEMENTS 104 STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL --STREET fMPROVEMENTS lOS STA'fEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL PARK IMPROVEMENTS 106 STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES -BllDGFT AND ACTUAL COMMUNITY DLVELOPMENT BLOCK GRANT PROJECTS 107 STATEMENT OF REVENUES, EXPENDITtRES, Al\D CHANGE IN FUND BALANCES -BUDGET AND ACTUAL TRANSPORTATION SAU:;:S TAX TRUST FUND IV 108 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -­BUDGET AND ACTUAL PARK STORM WATER SALES TAX 109 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL PARK STORM WATER SALES TAX -CAPITAL 110 STATEMENT' OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL HOUSING DEVELOPMENT GRANTS 111 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL CASINO REVENUE 112 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FAU GRANT PROJECTS 113 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL SEWER 114 ST A TEMEN'f OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -WAfER 115 STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES -­BUDGET AND ACTUAL -SOLID WASTE 116 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -GOLF COURSE 117 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -SOFTBALL COMPLEX 118 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -INFORMATION TECHNOLOGY 119 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -FLEET MANAGEMENT 120 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -FRINGE BENEFITS 121 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -RISK MANAGEMENT 122 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -EQUIPMENT REPLACEMENT 123 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -RIVERFRONT REGION ECONOMIC DEVELOPMENT 124 A1'lNUAL 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 CIRCULAR A-133 125-126 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORNIED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 127-128 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 129-131 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 132 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 133-134 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 135 BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants 16 South Silver Springs Road lOS South Hope 4018 Sycamore Cape Girardeau, Missouri 63703 Jackson, Missouri 63755 Cairo, Illinois 62914 Telephone (573) 334-7971 Telephone(573) 243-3991 Telephone(6l8) 734-3300 Facsimile (573) 243-3186Facsimile (573) 334-8875 Facsimile (618) 734-3303 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, 2012, 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 of Cape Girardeau, Missouri'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, 2012, and the respective changes in financial position, and where applicable cash flows, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2012, 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 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 82 through 90 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 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-133, 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. ~~1*1t. ~ tt ~~L.l.C, Cape Girardeau, Missouri December 18, 2012 2 REQUIRED SUPPLEMENTARY INFORMATION CITY OF CAPE GIRARDEAU, MISSOURI Management's Discussion and Analysis The discussion and analysis of the City of Cape Girardeau's financial performance provides an overall review of the City's financial activities for the fiscal year ended June 30, 2012. The intent of this discussion and analysis is to look at the City's financial performance as a whole. Readers should also review the basic financial statements and related notes to those statements to enhance their understanding ofthe City's financial performance. Financial Highlights o The assets of the City of Cape Girardeau exceeded its liabilities at the close of the most recent fiscal year by $250,990,911 (net assets). Of this amount, $33,027,226 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. o As of the close of the current fiscal year, the City of Cape Girardeau's governmental funds reported combined ending fund balances of $27,343,440. Approximately 11.4 percent of this total amount, $3,114,973 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 $3,114,973 or 12.6 percent of total general fund expenditures and transfers. o At the end of the current fiscal year, general fund balance reserved for emergencies was $3,930,688 or 15.9 percent of total general fund expenditures and transfers. o The City of Cape Girardeau's fixed assets increased $2,258,749 during the year. Net fixed asset additions of$13,871,205 were made during the year. Depreciation for the current fiscal year reduced fixed assets by $11,612,456. o The City of Cape Girardeau's total long-term debt decreased by $6,982,902 (11.1 percent) during the current fiscal year. During the year the City received disbursements totaling $199,000 from a $31,000,000 direct loan authorized during the current year through the state revolving loan program to fund costs 3 related to the future construction of a new wastewater treatment plant. Also during the year the City used $13,999,459 of proceeds from the issuance of water revenue bonds and a portion of debt service reserves to call $14,050,000 of the 1998 water revenue bonds that had originally been issued through the state revolving loan program to expand the City's water plant. Regularly scheduled principal payments and amortization ofbond premiums I discounts resulted in outstanding long-term debt being reduced by $7,131,361. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Cape Girardeau's basic financial statements. The City of Cape Girardeau's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Cape Girardeau's finances, in a manner similar to a private-sector business. The statement of net assets presents information on all the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the fmancial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in the net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). CITY OF CAPE GIRARDEAU, MISSOURI 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 fmancial statements can be found on pages 19 to 22 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Cape Girardeau, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statement, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of the governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term fmancing 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 35 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, capital improvement sales tax­ water system improvements, and transportation trust IV 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 fmancial 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 information technology systems, fleet management, self-insured employee benefits imd workmen's compensation programs, and its internal equipment leasing program. Proprietary funds provide the same type of information as the government-wide fmancial statements, only in more detail. The proprietary fund fmancial statements provide separate information for the sewer, water, and solid waste utilities and golf course and softball complex operations. All of these are considered, or have been designated, to be major funds of the City. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. 4 CITY OF CAPE GIRARDEAU, MISSOURI The basic proprietary fund financial statements can be found on pages 28 to 32 of this report. Budgetary comparison statements for all the proprietary funds are present as supplemental information. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found beginning on page 34 of this report. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. The City of Cape Girardeau, assets exceeded liabilities by $250,990,911, an increase of$9,819,768 (4.1%). The City's $209,477,285 net investment in capital assets (land, buildings, machinery, and equipment less related outstanding debt used to acquire those assets) makes up 83.5% of the City's net assets. This net investment increased $7,815,899 (3.9%) 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 $1,294,419 (13.2%) less than the previous year. The remaining balance of net assets ($33,027,226) is unrestricted and may be used to meet the City'S ongoing obligations to citizens and creditors. This reflects a $3,298,288 (11.1 %) 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 Activit~ Activities Total 2012 2011 2012 2011 2012 2011 Current and other assets 36,136,272 34,259,413 14,648,278 16,421,436 50,784,550 50,680,849 Capital assets 165,186,346 164,535,596 100,139,895 98,531,896 265,326,241 263,067,492 Total assets 201,322,618 198,795,009 114,788,173 114,953,332 316,110,791 313,748,341 Long-term liabilities outstanding 19,929,195 36,771,369 31,598,980 22,014,961 51,528,175 58,786,330 Other liabilities 6,811,221 7,783,729 6,780,483 6,007,139 13,591,704 13,790,868 Total liabilities 26,740,416 44,555,098 38,379,463 28,022,100 65,119,879 72,577,198 Net assets: Invested in capital assets, Net of related debt 145,265,494 127,938,045 64,211,791 73,723,341 209,477,285 201,661,386 Restricted 4,851,959 5,147,781 3,634,441 4,633,038 8,486,400 9,780,819 Unrestricted 24,464,748 21,154,085 8,562,478 8,574,853 33,027,226 29,728,938 Total net assets 174,582,201 154,239,911 76,408,710 86,931,232 250,990,911 241,171,143 5 CITY OF CAPE GIRARDEAU, MISSOURI Governmental activities. Governmental activities increased the City of Cape Girardeau's net assets by $20,408,995 (compared to $4,552,712 in the previous fiscal year). This exceeded total growth in net assets of the City by $10,545,481 resulting mainly from net transfers of$11,150, 182 from the City's business activities. Increases in net investments in capital assets during the fiscal year accounted for $17,327,449 or 84.9% of this year's increase of its governmental activities net assets. City of Cape Girardeau's Change in Net Assets Governmental Business-type activities activities Total 2012 2011 2012 2011 2012 2011 Revenues: Program revenue: Charges for service 5,057,123 4,707,825 18,829,983 14,013,089 23,887,106 18,720,914 Operating grants and contributions 1,547,279 1,597,890 13,655 68,675 1,560,934 1,666,565 Capital grants and contributions 1,332,549 2,252,992 498,384 417,165 1,830,933 2,670,157 General revenues: Property taxes 2,008,140 1,954,759 2,008,140 1,954,759 Sales taxes 25,442,574 24,262,759 25,442,574 24,262,759 Other taxes 9,536,220 8,893,241 9,536,220 8,893,241 Other 743,454 1,019,227 325,377 377,390 1,068,831 1,396,617 Special item 1,628,343 1,628,343 Total revenues 45,667,339 46,317,036 19,667,399 14,876,319 65,334,738 61,193,355 Expenses: Administrative 5,727,258 5,505,786 5,727,258 5,505,786 Capital Improvements 620,298 432,699 620,298 432,699 Development Services 3,104,617 3,032,909 3,104,617 3,032,909 Interest and other costs 1,440,995 1,622,569 1,440,995 1,622,569 Parks and Recreation 5,178,740 4,846,823 5,178,740 4,846,823 Public Safety 13,180,887 12,311,981 13,180,887 12,311,981 Public Works 7,155,731 6,956,715 7,155,731 6,956,715 Sewer 6,987,740 5,910,891 6,987,740 5,910,891 Water 6,937,308 6,327,558 6,937,308 6,327,558 Solid Waste 3,558,892 3,381,137 3,558,892 3,381,137 Golf Course 699,594 697,753 699,594 697,753 Softball Complex 879,164 679,194 879,164 679,194 Total expenses 36,408,526 34,709,482 19,062,698 16,996,533 55,471,224 51,706,015 Increase in net assets before tran sfers 9,258,813 11,607,554 604,701 (2,120,214) 9,863,514 9,487,340 Transfers 11,150,182 (7,054,842) (11,150,182) 7,054,842 Increase in net assets 20,408,995 4,552,712 (10,545,481) 4,934,628 9,863,514 9,487,340 Net assets-beginning of year 154,239,911 149,387,474 86,931,232 82,004,749 241,171,143 231,392,223 Inclusion of component units not previously reported 314,728 314,728 Prior period adjustments (66,705) (15,003) 22,959 (8,145) (43,746) (23,148) Net assets-end of year 174,582,201 154,239,911 76,408,710 86,931,232 250,990,911 241,171,143 6 CITY OF CAPE GIRARDEAU, MISSOURI Activity in the following revenue and expense items should be noted for the current fiscal year: Revenues from governmental activities • Charges for service increased $349,298 (7.4%) over the previous year. The previous year's revenue included a $150,000 payment from the Isle of Capri that was advanced to the City to cover costs of the riverboat gaming licensing process. If this item was excluded from the previous year's revenue the current year's revenue would have increased $499,298 (11.1%) over the previous year. During the current year revenue from fees for park and recreation services increased $168,412 (11.8%). Fees from the Osage Community Centre, Cape Splash, and the City's recreation program increased $15,590 (8.5%), $35,140 (6.1%), and $29,129 (13.2%), respectively, reflecting increased usage. Fees from the Shawnee Park Centre and Central Pool increased $24,738 (419.8%) and $32,238 (36.7%), respectively as the result of Shawnee Park Centre beginning operations in only March of the previous year and Central Pool being closed during a portion of the previous year for construction at the pooL Revenues from fines and costs charged by the municipal court increased $331,910 (45.1%) over the previous year. The municipal court revenue increase resulted mainly from a 27.9% increase in traffic violations during the current year over the previous year • Operating grants and contributions were $50,611 (3.2%) less than the previous year. During the current year the City received $517,584 in payments from various neighborhood improvement grants, $417,474 from various police operating grants, $174,493 in grants used establish bike routes throughout the City, $35,041 from a SAFER grant to cover the portion of the personnel costs of three additional firefighters, and $3,248 for reimbursement of flooding costs. During the previous year payments from these sources were $688,542, $403,262, $16,183, $61,185 and $108,268, respectively. During the current the City received grant funds totaling $132,587 to provide emergency shelter. In the previous year these grants were passed through directly to the recipient agencies. During the previous year the City received $50,171 and $8,000 in grant revenues to promote the downtown area and prepare historic district nomination, respectively. No grant funds were received for these purposes during the current year. • Capital grants and contributions decreased $920,443 (40.9%) from the previous year. In the current year $80,488 of donated assets and infrastructure were recorded. This was $100,134 (55.4%) less than the previous year. Benefiting property owners were charged $33,419 for a portion of this year's infrastructure costs. This was $381 (1.2%) more than the previous year. This year grants totaling $87,202, $625,276 and $139,616 were received for recreational trail projects, the Lewis and Clark Parkway project, and public safety equipment, respectively. In the previous year grants totaling $174,347, $60,374 and $137,290 were received for those projects, respectively. In the previous year grants totaling $98,834, $422,706, and $894,126 were received respectively for airport capital projects, water system improvements and the Fountain Street project, respectively. No grant funds were received on these projects in the current year. The remaining grant and contribution revenue received was $366,548 which was $114,893 (45.7%) more than the previous year. • Property tax revenue was $53,381 (2.7%) more than the previous year. The current year's revenue includes $12,950 of protested taxes from the previous year. Final adjusted assessed value of real estate increased $6,026,040 (1.4%) over the previous year. New construction of$4, 192,840 and annexed property of $57,540 were included in this increase. Final adjusted assessed value of personal property increased $1,207,385 (1.3%) from the previous year. The City tax levy rate did not increase during the current year. • Sales tax revenue was 55.7% of the total revenue during the current year vs. 52.4% in the previous year. This year's revenue was $1,179,817 (4.9%) more than the previous year. From fiscal year ending June 30,2008 through fiscal year ending June 30,2011 sale tax revenue, adjusted for new taxes, had annual growth rates of .6%, (1.6%), 1.6% and 2.0%, respectively. 7 CITY OF CAPE GIRARDEAU, MISSOURI Revenues from governmental activities (continued) • Other taxes increased $642,979 (7.2%) from the previous year. Franchise taxes, cigarette taxes, convention and tourism taxes, business licenses, and liquor licenses grew $145,520 (3.3%), $2,629 (1.6%), $120,240 (6.8%), $126,410 (10.7%), and $38(.1%), respectively. Motor fuel taxes decreased $1,858 (.1%). During the current year the City received $250,000 from the Isle of Capri for payment due to the Riverfront Development Fund pursuant to terms of a development agreement with the city. No payment was received in the previous year. • Ameren paid 68.5% of the total franchise tax collected during the year based on its electricity and natural gas revenues. During the current year Ameren paid $66,058 (2.1 %) less than the previous year. Payments received on natural gas sales declined $135,273 (16.9%) from the previous year even though natural gas rates averaged approximately 3.5% more during the current year. Payments received on electricity sales only increased $69,215 (2.9%) even though the average residential rates averaged 6.8% more than the previous year. An extremely mild winter had a negative impact on both the natural gas and electricity receipts. • During the current year the City received payments in lieu of franchise taxes from its water and sewer funds totaling $723,484. This was $243,868 (50.9%) greater than the previous year. In the current year the water fund increased its residential and commercial rates by 5%. The sewer fund increased its fixed rates by 293. t % and its volume based rate by 122.3% to produce the revenues that will be needed to service the debt that will be issued in conjunction with the construction ofa new sewer plant. • Franchise tax paid during the current year by the City's telecommunication and cable TV service providers decreased $30,847 (8.9%) and $1,443 (.4%), respectively, from the previous year. During the previous year the City received $49,600 in back taxes from T -Mobile. • The increase in the convention and tourism taxes was comprised of$67,566 (5.6%) and $52,674 (9.4%) increases in restaurant and hotel/motel taxes, respectively, from the previous year. • Other revenue declined $275,773 (27.1 %) from the previous year to $743,454. Investment earnings, which accounted for 76.7% of other revenue, decreased $53,038 (8.5%). During the previous year a $250,791 gain was recognized on property transferred to the Isle of Capri for a new gaming development. • The previous year's financial statement reflected a special item totaling $1,628,343. During that year the City received $2,000,000 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 City 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 $5,727,258 this year which was $221,471 (4.0%) more than the previous year. Excluding personnel costs, the most significant cost item included in this category is the City's support of the "River Campus Project", This is a joint City/University project. The City agreed to make payments from its convention and tourism taxes to pay principal and interest on bonds issued by the University to fund $8.9 million of construction costs related to a campus, performance center, and museum on property that oversees the Mississippi River. The campus began operating in the fall of2007. The total cost of the project exceeded $60 million. The city's payments to Southeast Missouri State University increased $92,087 (7.6%) to $1,308,184 this year. 8 CITY OF CAPE GIRARDEAU, MISSOURI Expenses from governmental activities (continued) Current revenues collected from the hotel, motel, and restaurant taxes not used for the operation of the 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 $129,625 on such projects, an increase of$8,721 (7.3%) over the previous year. At the end of the current year there was still $208,433 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 salaries and benefits increased $131,302 (7.4%) over the previous year (2) legal fees related to the eviction of a tenant from its manufacturing facility at the airport resulted in costs totaling $72,354 (3) cost of a city-wide survey was $20,000 (4) amount spent on Preserve America Grant related expenditures decreased $51,968 to zero. • Capital improvements expenses totaled $620,298 this year which was $187,599 (43.4%) 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 $3,104,617 this year which was $71,708 (2.4%) more than the previous year. During the current fiscal year the City spent $279,435 for a CDBG funded renovation ofa commercial building, $385,234 on various grant funded neighborhood improvement and housing projects, and $187,536 in grant funded expenditures to establish bike routes throughout the City. During the previous year the City spent $9,100, $871,695 and $27,620 on these projects, respectively. During the current year the City made $134,821 in expenditures related to an emergency shelter grant. In the previous year this grant was passed through directly to the recipient agencies. • Interest and other costs totaled $1,440,995 this year which was $181,574 (11.2%) less than the previous year. During the previous year, the City paid off the 2001 certificates of participation that were originally issued to construct a manufacturing facility at the Cape Girardeau Regional Airport. • Parks and recreation expenses totaled $5,178,740 this year which was $331,917 (6.8%) more than the previous year. This year's expenditures include $190,440 in operating expenses from Shawnee Park Center. This was the first full year of operation for the Shawnee Park Center which opened in the spring of 20 11. Total operating expense for the center was $81,052 in the previous year. The current year did not include any expenditure from Capaha pool which was demolished in the previous year. In the previous year there was $107,762 in operating expenses associated with the pool. Operating expenses at the Central pool were $88,382 (28.4%) more than the previous year during the current year. The pool had been closed for remodeling during a portion of the previous year. City Hall maintenance costs which are included in the facilities maintenance division of parks and recreation increased $34,440 (615.4%) during the current year as a result of significant boiler and electrical repairs and office redesign caused by staff restructuring. This year's financial statements included depreciation costs $936,776 which was $99,180 (11.8%) more than the previous year. This mainly resulted from equipment purchases and facility construction funded by the parks / storm water sales tax. Capital outlays in amounts that did not meet the City's $5,000 capitalization threshold totaling $84,151 were included in this year's parks and recreation expenditures. This was $29,260 (53.3%) more than the previous year. • Public safety expenses totaled $13,180,887 this year which was $868,906 (7.1 %) more than the previous year. Included in this year's expenses is depreciation expense totaling $672,191 which was $7,449 (1.1 %) less than the previous year, personnel costs totaling $10,563,405 which was $638,773 (6.4%) more than the previous year, and operating expenses totaling $1,945,291 which was $237,582 (13.9%) more than the previous year. 9 CITY OF CAPE GIRARDEAU, MISSOURI Expenses from governmental activities (continued) Salary expense totaling $7,432,764 and employee and retiree benefit costs totaling $3,130,641 account for the personnel costs included in this year expense. These costs were $196,680 (2.7%) and $442,093 (16.4%) more than the previous year. Increases in allocated worker's compensation costs, contributions to the employees' defmed benefit pension, and allocated employee and retiree health and dental cost make up over 95% of this year's increase in benefit costs. These costs increased $185,027 (225.4%), $76,354 (11.7%), and $160,256 (11.6%) respectively over the previous year. During the current year net costs in the City's self-insured worker's compensation program increased 222.5%. In the previous year these costs decreased 73.5%. Contribution rates charged by the City's employee defmed benefit retirement plan increased 12.7% and 8.1 % respectively for the City's police and fire employees during the current year. During the current year net costs in the City's self-insured health and dental programs increased 24.4%. The following were significant operating expense increases from the previous year: (1) Vehicle fuel $56,280 (22.9%) (2) Expenses related to fire operating grants $38,389 (1052.5%) (3) Professional services $29,327 (2,845.8%) (4) Uniform and protective clothing $22,862 (36.6%) (5) Fleet maintenance costs $24,783 (10.0%) and (6) Building condemnation costs $6,823 (41.1 %). Capital outlays in amounts that did not meet the City's $5,000 capitalization threshold totaling $47,054 were included in this year's public safety expenditures. This was $22,112 (88.7%) more than the previous year. • Public works expenses totaled $7,155,731 this year which was $199,016 (2.9%) more than the previous year. Included in this year's expenses is depreciation expense totaling $4,810,682 which was $74,674 (5.8%) more than the previous year, personnel costs totaling $1,074,850 which was $32,539 (3.1%) more than the previous year, and operating expenses totaling $1,270,199 which was $91,803 (7.8%) more than the previous year. The most significant change in this year's operating expense was street light electricity costs which were $61,130 (18.8%) more than the previous year resulting mainly from a significant rate hike. Softball Complex Go~ Course SewerSOlidWastee~~5!5:~;- Water f>ublic VIobrks Parks & Recreation Development Serv f>ublic Safety jiii~~~;~~~~~:~~~~~~~~~~~~~~~~~~Administrative 1,500,000 3,000,000 4,500,000 6,000,000 7,500,000 9,000,000 10,500,000 12,000,000 13,500,000 The illustration above makes it clear that all the governmental activities and business-type activities of the City with the exception of water and sewer required a subsidy by taxpayers. General revenues in these activities, which include transfers from special revenue sales taxes, were sufficient to provide adequate subsidies for both the governmental and business-type activities. 10 CITY OF CAPE GIRARDEAU, MISSOURI Revenues by Source ­ Governmental Activities Revenues for governmental activities Operating Charge for grantsService 3.4% Capital grants11.1%other 2.9% 1,1,% The above chart summarizes the sources of revenue from government activities. The three main sources of revenue and their share of total governmental revenues are sales tax (55.7%), other taxes (20.9%) and charges for services (11.1%). The City's general sales tax represents 36.7 percent ofthe total sales tax revenue and 44.2 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 63.4% and 56.6% of the other tax and service charge revenue respectively. This represents 28.7% and 13.6% of the total general fund revenues respectively. Business-type activities Net assets of the City decreased by $10,545,481 as a result of its business-type activities during the current year. During the previous year business-type activities increased the City's net assets by $4,934,628. Business-type activities before transfers increased the City's net assets by $604,701 during the current year and decreased the net assets by $2,120,214 during the prior year. During the current year there were net transfers from the business-type activities to governmental activities of $11,150,182. In the previous year there were net transfers from governmental activities to business-type activities of $7,054,842. In the current year proceeds of revenue bonds issued by the water fund totaling $13,848,571 were transferred to the capital improvement sales tax -water projects fund to call $14,050,000 of the 1998 water revenue bonds that had originally been issued through the state revolving loan program to expand the City's water plant. During the current year the sewer fund transferred amounts totaling $2,513,700 to the capital improvement sales tax funds. These were made to return transfers received from those funds in the previous year to cover short-term cash flow deficits related to the construction and design of the new wastewater treatment plant. Transfers of sales tax revenue for bond payments totaling $1,624,914 and operating subsidy transfers from the general and parks I storm water sales tax funds totaling $853,864 were made during the current year. Last year these transfers totaled $1,702,899 and $836,147, respectively. During the current year capital improvements totaling $2,600,737 were transferred to the water, sewer, golf and softball complex funds from capital project funds. Last year these transfers were $1,976,826. $125,000 was transferred from the casino revenue fund to the sewer fund during the current year to fund a portion of the costs of the new wastewater treatment plant. The net change in assets before transfers and general revenues in the sewer, water, solid waste, golf, and softball operations totaled $873,466, $402,135, (193,009), $(l87,666), and $(615,602), respectively, this year. This compares to $(2,035,535), $395,503, $(203,959), $(193,381), and $(460,232), respectively, in the previous year. Revenues for business-type activiies Capital grants 2.5% Other 17% Charge for SerVice Grants Operating 95.7% 0.1% Financial Analysis of the City's Funds As noted earlier, the City of Cape Girardeau uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. 11 CITY OF CAPE GIRARDEAU, MISSOURI Governmental funds, The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources, Such information is useful in assessing the City's financing requirements, In particular, unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end of a fiscal year, As ofJune 30, 2012, the City'S governmental funds reported combined ending fund balances of$27,343,440, an increase of$I,748,487 (6,8%) from the prior year, Unassigned fund balances, which are available for spending at the City's discretion, account for $3,114,973 (I 1,4%) of the total fund balances, 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, 2012: (1) $1,003,400 is classified as nonspendable because it is either (a) not in spendable form or (b) legally or contractually required to be maintained intact (2) $20,759,112 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) $2,465,956 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 30,2012, unassigned fund balance of the general fund was $3,114,973 while total fund balance was $8,226,108. As a measure of the 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 12.6 percent of total general fund expenditures including transfers. However, included in the reserved fund balance is $3,930,688, which had been reserved to meet the City Charter's emergency reserve requirement. This amount represents 15.9 percent of total general fund expenditures including transfers and could be used if an emergency was declared by the City Council. The Governmental Funds Statement of Revenue, Expenditures, and Changes in Fund Balance shows that the total fund balance of the City of Cape Girardeau's general fund increased by $1,756,981 during the current fiscal year. However, the General Fund Statement of Revenues, Expenditures, and Changes of Fund Balance prepared on a budget basis shows a current fiscal year increase of$1 ,871 ,880, Differences between the amounts reflected in the two statements can be found in the Notes to Budgetary Comparison Schedules found on pages 86 to 89. The original adopted general fund budget for the fiscal year ending June 30, 2012 had a surplus of revenues over expenditures of$2,229. The actual general fund results increased fund balances by $1,871,880. Significant deviations from this budget are detailed below: o Sales tax revenue was $426,465 (4,8%) more than the previous year, which was $430,635 (4.8%) more than projected for the adopted budget. The adopted budget projected revenues that were I % above the projected fiscal year ending June 30, 2011 revenues. Actual revenue for fiscal year ending June 30, 2011 increased 2.06% from the previous year while the budget had assumed it would increase only 1%. o Franchise tax revenue was $343,251 (8.3%) more than projected for the adopted budget. Franchise taxes from the City'S water and sewer, telecommunications, and electric utilities exceeded their budgets by $232,518 (47,4%), $92,647 (41.9%), and $162,601 (7.3%), respectively. Franchise tax from natural gas utilities and cable TV were $129,838 (16,4%) and $14,677 (3.7%) below their projected budget. o During the current year Ameren paid $66,058 (2.1 %) less franchise taxes than the previous year. Payments received on natural gas sales declined $135,273 (16.9%) from the previous year even though natural gas rates averaged approximately 3.5% more during the current year. Payments received on electricity sales only increased $69,215 (2.9%) even though the average residential rates averaged 6.8% more than the previous year. Projections used in the current year's budget had assumed natural gas usage equal to usage from calendar year 2010 and electricity usage equal to usage for fiscal year ending June 30, 20 10 and rates in effect in April 201 I. An extremely mild winter had a negative impact on both the natural gas and electricity receipts. 12 CITY OF CAPE GIRARDEAU, MISSOURI o During the current year the City received payments in lieu of franchise taxes from its water and sewer funds totaling $723,484. This was $243,868 (50.9%) greater than the previous year. In the current year the water fund increased its residential and commercial rates by 5%. The sewer fund increased its fixed rates by 293.1% and its volume based rate by 122.3% to produce the revenues that will be needed to service the debt that will be issued in conjunction with the construction of a new sewer plant. The amount of payments in lieu of franchise taxes projected for the current year's budget had not assumed the sewer rate increases. o Franchise tax paid during the current year by the City's telecommunication and cable TV service providers decreased $30,847 (8.9%) and $1,443 (.4%), respectively, from the previous year. During the previous year the City received $49,600 in back taxes from T-Mobile. The amount of projected franchise tax from telecommunication providers used in the current year's budget was significantly underestimated. o Property tax revenue increased $50,845 (3.1%) over the previous year and was $28,572 (1.7%) more than the projected budget. The current year's revenue includes $10,908 of protested taxes from the previous year. Final adjusted assessed value of real estate increased $6,026,040 (1.4%) over the previous year. New construction of $4, 192,840 and annexed property of$57,540 were included in this increase. Final adjusted assessed value of personal property increased 1,207,385 (1.3%) from the previous year. The adopted budget for the fiscal year ending June 30, 2012 had assumed 1.0% and 0.0% assessed value growth for real estate and personal property, respectively. The City tax levy rate did not increase during the current year. o Business license revenue increased $126,410 (10.7%) over the previous year and exceeded the projected budget by $106,001 (8.8%). The adopted budget projected revenues that were 1% above the projected fiscal year ending June 30, 2011 revenues. Actual revenue for fiscal year 13 ending June 30, 2011 increased only 2.62% from the previous year while the budget had assumed it would increase 3.35%. o Other license and permit revenue was $52,137 (25.8%) higher this year than the previous year and was $66,835 (35.7%) more than projected for the budget. This year's increase resulted mainly from increases in construction related permits over the previous year. o Intergovernmental revenue exceeded revenue projected for the budget by $544,689 (113.0%). This year's intergovernmental revenue included $133,055 in revenues from various public safety capital grants, $58,461 grant for the City's CERT program, $173,156 grant to establish bicycle routes throughout the city, $132,587 for an emergency shelter grant and $58,461 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. None of these revenues had been projected in the current year's budget. o Service charges were $35,933 (2.5%) less than the previous year but were $30,393 (2.2%) more than projected in the budget. Internal costs charged to various parks capital projects totaling $82,004 had not been anticipated in the original budget. a Fines and forfeits revenue was $305,839 (46.5%) more than the previous year and was $138,252 (16.8%) more than projected in the budget. There was 27.9% increase in traffic violations during the current year over the previous year. The adopted budget for fiscal year ending June 30, 2012 had assumed revenue levels approximately equal to fiscal year ending June 30,2010 levels. o During the current fiscal year total expenditures were $408,917 (2.0%) more than the original budget. Operating expenditures and capital expenditures exceeded their original budgets by $312,732 (1.6%) and $98,040 (63.6%) respectively. Actual debt service expenditures were $1,855 (1.2%) less than the original budget. CITY OF CAPE GIRARDEAU, MISSOURI o Transfers to other funds for operating subsidies were $131,018 (3.4%) more than original budget and transfers for capital expenditures exceeded their original budgets by $133,672 (3,819.2%). Proprietary funds. The City of Cape Girardeau's enterprise funds are all presented as major funds for purposes of this report. As a result, all statements related to the enterprise funds are presented at the government-wide leveL The City does have Internal Service funds, which are reported in total on the Proprietary Fund Statement and consolidated with other governmental activities on the government-wide statements. General Fund Budgetary Highlights Total expenditures and transfers on the final amended budget were $1,320,950 (5.5%) more than the original adopted budget. The changes that were appropriated by the City Council can be summarized as follows: Administrative -$86,000.00 for costs related to personnel activity not included in the original budget, city-wide survey, outside legal counsel, and legal services related to updating the City code of ordinances. Development Services $381,500.00 for costs related to grant funded expenditures to establish bike routes throughout the city, an emergency shelter grant, inspection costs of the Casino construction, fleet maintenance, and other economic development costs. Public Safety -$222,150.00 for costs related to outside legal counsel, prisoner food, fleet maintenance, part-time and over-time salaries, and various public safety operating grants. Parks and Recreation -$38,900.00 for additional utility, building maintenance, and building supply costs. Public Safety -$53,500.00 for costs related to grant funded police overtime, 4 tasers, installation of communication equipment, rewiring of Gordonville communication tower, and other municipal court, police, and fire operating expenses Contingency -$12,000.00 for sink-hole mitigation costs. Administrative· $6,000.00 to replace scanner for personnel records storage system. Public Safety· $19,200.00 to replace soft-sided rescue boat. Public Safety -($93,700.00) for demolition ofa building on land adjacent to the police station and to cover the cost of various grant funded capital projects. General Fund Transfer to Airport Fund $75,000.00 to cover projected operating shortfalL General Fund to Parks and Recreation Fund ­ $90,000.00 to cover projected operating shortfalL General Fund to Softball Complex Fund $40,000.00 to cover projected operating shortfalL General Fund to Public Safety Trust Fund ­ $130,000.00 to cover transfer of additional sales tax revenue. General Fund to Housing Development Grants Fund -$36,000.00 to cover costs not reimbursed by grants. General Fund to CDBG Grants Fund -$1,000.00 to cover costs not reimbursed by grants. General Fund to Sewer Fund -$6,000.00 to cover transfer of equipment from the sewer fund. General Fund to Equipment Replacement Fund $30,000.00 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. 14 CITY OF CAPE GIRARDEAU, MISSOURI Capital Assets and Debt Administration Capital Assets. The City of Cape Girardeau's investment in capital assets for its governmental and business-type activities as of June 30, 2012, amounts to $265,326,241 (net of accumulated depreciation). This investment in capital assets includes all land, buildings and system improvements, machinery and equipment, and infrastructure owned by the City. City Capital Assets IiiILand • Buildings/Equipment o Infrastructure 51.0% Major capital asset events during the current fiscal year included the following: a Construction costs totaling $5,559,062 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 and sidewalk construction and repair. a Costs totaling $1,283,828 related to the new Wastewater Treatment Plant were incurred this year. o Construction costs totaling $2,493,285 on various water system projects were incurred this year. Major water system improvements included the completion of a new water distribution line, software to run four new wells, the addition of water main extensions and the continuation of the two-inch water main replacement program. o Costs totaling $4,798 were incurred for sidewalk construction for the safe routes to school program. These costs were almost entirely funded by the Department of Transportation. o $770,386 in construction costs were incurred for a street project that is being partially funded by the Missouri Department of Transportation. o Department of Transportation funds were used to partially fund the $39,838 spent to expand the City's trail system. o In April 2008 voters approved a Ih cent sales tax to pay for storm water and park improvement projects. $289,220 and $494,589 were spent respectively during the current year on these projects. o Sewer projects funded by sewer revenue amounted to $189,575 in capital expenditures during the current year. Additional information about the City's capital assets can be found in note D to the fmancial statements. City of Cape Girardeau's Capital Assets (oet of depreciation) Governmental Business-type Activity Activities Total 2012 2011 2012 2011 2012 2011 Land 4,926,320 5,402,766 647,165 161,989 5,573,485 5,564,755 Buildings and system improvements 22,754,492 23,668,979 2,495,635 2,701,428 25.250,127 26,370,407 Improvements other than buildings 10,363,902 11,026,806 89,417.174 85,489,842 99,781,076 96,516,648 EqUipment 6,019,842 5,785,693 4,200,680 4,515,275 10,220,522 10,300,968 Infrastructure 118,903,775 116,018,659 118,903,775 116.018,659 Construction in progress 2,218.015 2,632,693 3,379,241 5,663,362 5,597,256 8,296,055 Total 165,186,346 164,535,596 100,139,895 98,531,896 265,326,241 263,067,492 15 CITY OF CAPE GIRARDEAU, MISSOURI City of Cape Girardeau's Outstanding Debt Year ended 2012 Governmental Business-type Activit:t Activities Total 2012 2011 2012 2011 2012 2011 647,528 692,646 810,109 870,117 1,457,637 1,562,763 3,989,317 4,839,002 1,017,537 1,150,626 5,006,854 5,989,628 937,600 16,218,078 34,208,439 22,961,375 35,146,039 39,179,453 14,371,824 16,233,412 14,371,824 16,233,412 Notes payable Special obligation bonds Revenue bonds Certificates of participation General obligation bonds Leasehold revenue bonds 19,946,269 37,983,138 36,036,085 24,982,118 55,982,354 62,965,256 Long-tenn debt. At the end of the fiscal year, the City of Cape Girardeau had total debt outstanding of$55,982,354. Bonded debt outstanding totaling $35,146,039 is secured by revenues of the sewer and water funds and capital improvement sales taxes, The repayment of the remaining debt is subject to annual appropriations. The City'S total outstanding debt declined by $6,982,902 (l1.1%) during the current year. In the current year the City received disbursements totaling $199,000 from a $31,000,000 direct loan authorized during the current year through the state revolving loan program to fund costs related to the future construction of a new wastewater treatment plant. Also during the year the City used $13,999,459 of proceeds from the issuance of water revenue bonds and a portion of debt service reserves to call $14,050,000 of the 1998 water revenue bonds that had originally been issued through the state revolving loan program to expand the City's water plant. Regularly scheduled principal payments and amortization of bond premiums / discounts resulted in outstanding long-tenn debt being reduced by $7,131,361. More information about the City's outstanding debt can be found in note E to the fmancial statements. 16 CITY OF CAPE GIRARDEAU, MISSOURI Economic Factors and the Next Year's Budget Residential development showed significant improvement during the past year. Values of residential permits issued during the year increased 214.6% over the previous year's values. Residential development this year was the strongest since fiscal year ending June 30, 2007. Commercial development.also increased significantly during the current. Values of commercial permits issued during the year were 27.0% higher than the previous year. Commercial development was stronger this year than all but one of the past five years. Commercial and residential permits valued at $38.3 million and $16.1 million were issued this year. Commercial and residential permits valued at $30.2 million and $5.1 million were issued in the previous year. In the current year 52 single family residence and 14 two family residence building permits totaling $9,599,218 and $2,267,000 respectively were issued. In the previous year 19 single family residence and I two family residence building permits totaling $2,760,860 and $210,000 respectively were issued. Local employment continues to be stronger than state and national employment. The Cape Girardeau County unadjusted unemployment rate was only 5.7% in October 2012.This compares favorably with the statewide and national unadjusted unemployment rates which were of 6.6% and 7.5% respectively. The unadjusted unemployment rates were 6.7%,7.9% and 8.5% 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 tax provide significant support to local construction employment. The following major retail stores have been constructed or announced during the past year. Menard's, a 150,000 square foot home improvement store, opened in May 2012. This was expected to employ approximately 150 people. In October 2012 Academy Sports announced that it would be constructing a 75,000 square foot facility in the city. This store is expects to employ approximately 75 people. In October 2012 the Isle of Capri opened its $125 million casino development in the downtown area. The development should employ approximately 450 people and produce an estimated $3 million of additional annual tax revenue for the City. In October 2012 Procter and Gamble announced a $300 million expansion of its plant located in Cape Girardeau County. This expansion should create 50 additional permanent jobs. Expansion projects estimated to cost approximately $127 million in total for other manufacturing plants in the local area have been announced or completed during the past year. These projects are expected to create approximately 90 permanent jobs. During the year the City continued to enhance its position as a regional medical center. Both hospitals have continued to expand their facilities. In December 2012 Saint Francis Medical Center announced an estimated $130 million expansion of its facilities. Taxable sales subject to the City's general sales tax increased 4.8% 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 fee that is not based on actual costs to the user and strictly limits the City's ability to increase its real estate and personal property tax levies to support its general services such as police and fire protection. The City Charter requires voter approval to increase sewer, water, and solid waste fees by more than 5% in any year. All other user fees can be adjusted to cover actual costs. Improving retail economy. Sales tax is a significant revenue source of the City and is a barometer of the local economy. In the current year sales tax revenue from the general sales tax increased 4.8% while inflation grew at 3.1 %. In the previous year sales tax revenue from the general sales tax increased 2.1 % while inflation grew at 1.8 %. The City's restaurant gross receipt tax and hoteVmotel gross receipt tax increased 5.6% and 9.4%, respectively, during the current year. In the previous year they increased 4.6% and 7.3%, respectively. 17 CITY OF CAPE GIRARDEAU, MISSOURI Regional retail center. Through most of the 1990's Cape Girardeau continued to be a regional retail center for much of Southeast Missouri and Southern Illinois. During the latter part of the 1990's Cape Girardeau began to lose its share of the retail market to other cities in the region as these cities added additional retail outlets in their communities. SALES TAX COMPARISON FY09 FY10 FY11 FY12 Cape Girardeau 41.1% 41.7% 41.9% 42.4% Carbondale 27.7% 27.9% 27.9% 27,4% Jackson 9.9% 9.5% 9.6% 9.6% Perryville 7,4% 7.4% 7.2% 7.2% Sikeston 13.9% 13.5% 13.4% 13.4% 100.0% 100.0% 100.0% 100.0% The previous table, which includes the City of Cape Girardeau and significant retail centers within a 50 mile radius, shows the percentage of estimated sales made by each City to the total estimated sales of the five cities. 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 entered into a development agreement that will pay up to $3 million dollars for public improvements at a new Academy Sports store. These improvements will be paid from additional sales tax generated from this project. In the previous 8 years the City has entered into 4 long-term development agreements to reimburse companies for the public improvements associated with 4 retail development projects from the additional sales tax generated from those projects. The agreements have resulted in the addition of two major new retailers, 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 $167,828 during the current year. Payments totaling $1,139,242 have been made since the beginning of these agreements. During the year the City spent $65,986 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. On December 12,2012, the City announced its intention to purchase 247.43 acres along interstate 1­ 55 around the new LaSalle interchange for $6,000,000 under terms agreed to with the Southeast Missouri University Foundation. Per the terms, a $480,000 down payment will be made by the Greater Cape Girardeau Benevolent Association on behalf of the City and the City will make 12 annual payments of$460,000. The contract for this purchase is expected to be approved in January 2013. The land will be used for future business development and is best suited for distribution centers, light manufacturing, technology-related businesses and some retail development. Budget for fiscal year ending June 30, 2013 and financial condition The adopted general fund budget for the fiscal year ending June 30, 2013, was projected to produce a $168,118 surplus. The adopted general fund budget included a 2% wage increase effective July 1,2012 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 $73,164 in capital costs. The City's current financial position had improved substantially during the past three years and is good in that it has more than adequate fund balance to cover existing claims and potential emergencies. Its financial condition or its ability to provide enough reoccurring revenues to meet its reoccurring needs has also improved over the past three years. However, it is still less than desirable. Funding of equipment for the general and airport funds, excluding police, fire, and various park divisions is still not at desired levels. Requests for Information This financial report is designed to provide a general overview of the City of Cape Girardeau's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Cape Girardeau, PO Box 617, Cape Girardeau, MO 63702-0617. 18 BASIC FINANCIAL STATEMENTS City of Cape Girardeau Statement of Net Assets For the Year Ended June 30, 2012 Governmental Activities Primary Government Business-type 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 Internal balances Inventory Prepaid items Restricted cash and cash equivalents Restricted investments Land Buildings Other improvements Equipment Infrastructure Construction in process Total assets $ 866,697.20 27,857,249.70 4,163,096.09 371,408.42 64,432.68 291,205.34 231,568.94 118,669.75 1,089,477.95 400,557.03 218,629.09 463,279.08 4,926,319.40 22,754,492.03 10,363,902.36 6,019,842.36 118,903,775.15 2,218,015.01 $ 201,322,617.58 $ 222,328.00 8,131,316.84 2,757,630.11 42,882.45 28,619.15 27,984.30 8,253.65 (400,557.03) 683,875.00 132,864.81 1,413,472.06 1,599,609.10 647,165.04 2,495,634.96 89,417,174.02 4,200,679.74 3,379,240.83 $ 114,788,173.03 $ $ 1,089,025.20 35,988,566.54 4,163,096.09 2,757,630.11 414,290.87 93,051.83 319,189.64 231,568.94 118,669.75 1,097,731.60 902,504.09 596,143.89 1,413,472.06 1,599,609.10 5,573,484.44 25,250,126.99 99,781,076.38 10,220,522.10 118,903,775.15 5,597,255.84 316,110,790.61 See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau Statement of Net Assets For the Year Ended June 30, 2012 Governmental Activities Primary Government Business-type Activities Total LIABILITIES Accounts payable Salaries and benefits payable Interest payable Other liabilities Estimated claims Due to other governments Uneamed revenues Estimated landfill post closure costs Current portion long-term debt: Notes payable Revenue bonds payable Leasehold revenue bonds payable Special obligation bonds payable Long-term debt net of current portion: Notes payable Revenue bonds payable Leasehold revenue bonds payable Special obligation bonds payable Compensated absences payable Net OPEB Obligaton Total liabilities $ 2,484,507.99 348,122.49 157,335.00 256,510.55 510,500.00 2,206.64 71,605.50 127,632.85 42,800.00 1,955,000.00 855,000.00 519,895.06 894,800.00 12,416,824.63 3,134,316.59 830,815.80 2,132,543.00 26,740,416.10 $ 1,103,847.08 66,531.20 133,550.24 568,086.93 79,463.67 39,000.00 30,004.00 4,620,000.00 140,000.00 780,104.94 29,588,439.40 877,536.50 119,635.29 233,264.00 38,379,463.25 $ 3,588,355.07 414,653.69 290,885.24 824,597.48 510,500.00 81,670.31 71,605.50 39,000.00 157,636.85 4,662,800.00 1,955,000.00 995,000.00 1,300,000.00 30,483,239.40 12,416,824.63 4,011,853.09 950,451.09 2,365,807.00 65,119,879.35 NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Restricted for depreciation and replacement Restricted for emergency fund Restricted for Mausoleum Restricted for River Campus Project Restricted for Local Access Channel Restricted for Operation and Maintenance Unrestricted Total net assets 145,265,493.72 20,353.39 4,595,853.00 92,268.63 125,985.04 44.82 17,454.82 24,464,748.06 $ 174,582,201.48 64,211,791.19 568,333.33 277,000.00 2,789,107.00 8,562,478.26 $ 76,408,709.78 $ 209,477,284.91 588,686.72 277,000.00 7,384,960.00 92,268.63 125,985.04 44.82 17,454.82 33,027,226.32 250,990,911.26 See Accompanying Notes to Basic Financial Statements. t-l City of Cape Girardeau Statement of Activities For the Year Ended June 30, 2012 Program Revenues Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Activities Business-type Activities TotalFunctionsfPrograms Primary government: Governmental activities: Administrative Capital Improvements Development Services Interest and other costs Parks and Recreation Public Safety Public Works Total governmental activities Business-type Activities: Golf Course Sewer Softball Complex Solid Waste Water Total business-type activities Expenses $ 5,727,257.55 620,298.05 3,104,617.30 1,440,995.11 5,178,739.63 13,180,887.17 7,155,730.87 36,408,525.68 699,593.94 6,987,740.06 879,164.35 3,558,891.62 6,937,308.61 19,062,698.58 Charges for Services $ 1,450,890.70 734,732.21 1,598,709.11 1,109,461.13 163,329.57 5,057,122.72 499,839.32 7,765,323.79 263,399.05 3,338,511.59 6,962,908.84 18,829,982.59 Operating Grants and Contributions $ 166,965.52 824,664.77 27,535.30 494,865.10 33,248.18 1,547,278.87 60.60 13,594.39 13,654.99 Capital Grants and Contributions $ 58,652.00 991,912.50 158,142.94 123,841.48 1,332,548.92 12,088.90 95,821.97 162.49 13,777.00 376,533.81 498,384.17 $ (4,050,749.33) 371,614.45 (1,545,220.32) (1,440,995.11 ) (3,552,495.22) (11,418,418.00) (6,835,311.64) @M71,575.17) $ $ (4,050,749.33) 371,614.45 (1,545,220.32) (1,440,995.11 ) (3,552,495.22) (11,418,418.00) (6,835,311.64) (28,471,575.171 (187,665.72) (187,665.72) 873,466.30 873,466.30 (615,602.81) (615,602.81) (193,008.64) (193,008.64) 402,134.04 402,134.04 279,323.17 279,323.17 Total primary governrnent $ 55,471,224.26 $ 23,887,105.31 $ 1,560,933.86 $ 1,830,933.09 (28,471,575.17) 279,323.17 (28,192,252.00) See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau Statement of Activities For the Year Ended June 3D, 2012 Program Revenues Net (Expense) Revenue and Changes in Net Assets FunctionslPrograms Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Primary Government Business-type Activities Total Primary government: t'J tv Governmental activities: General revenues: Property taxes Sales taxes Franchise taxes Motor fuel taxes Convention and tourism taxes Merchant licenses liquor licenses Other taxes Unrestricted grants and contributions Unrestricted investment earnings Gain on sale of assets Transfers Total general revenues Change in net assets 2,008,140.32 25,442,575.24 4,497,417.26 1 ,354,087.77 1,886,774.68 1,313,000.81 64,965.00 419,974.26 55,343.73 570,203.63 117,906.30 11,150,181.57 48,880,570.37 20,408,995.20 267,084.94 58,291.98 (11,150,181.57) (10,824,804.65l (10,545,481.48) 2,008,140.32 25,442,575.24 4,497,417.26 1,354,087.77 1,886,774.68 1,313,000.61 64,965.00 419,974.26 55,343.73 837,28857 176,198.28 38,055,765.72 9,863,513.72 Net assets -beginning Prior period adjustment Net assets -ending 154,239,910.72 (66,704.44) $ 174,582,201.48 $ 86,931,231.89 22,959.37 76,408,709.78 241,171,142.61 {43,745.07l $ 250,990,911.26 See Accompanying Notes to BasiC Financial Statements. FUND FINANCIAL STATEMENTS City of Cape Girardeau Balance Sheet Governmental Funds For the Year Ended June 30, 2012 Park and Capital Improvement Sales Tax- Transportation Sales Tax Other Governmental Total Governmental General Airport Recreation Water System Imp Trust Fund IV Funds Funds ASSETS Current assets: Cash and cash equivalents Investments $ 161,903.44 4,752,620.77 $ 1,267.93 46,424.14 $ 16,674.57 610.521.88 $ 124,002.62 2,461,042.26 $ 95,158.51 3,484,129.25 $ 323,103.22 11,412,215.00 $ 722,110.29 22.766.953.30 tv f...J',J Receivables- Real estate taxes, net Personal property taxes. net Sales tax Franchise taxes Hotel & motel tax Restaurant tax Special assessments Other Interest Motor fuel tax Vehicle license fees Motor vehicle sales tax Grants Other funds Inventory Prepaid items 54,084.40 4,047.33 833,388.66 1,634,325.17 94.349.83 82,036.48 9,824.82 173,292.94 140,024.15 111.96 124,418.29 154.016.61 109.39 100,777.86 39,254.84 15,859.10 36,483.78 1,444.61 10.917.33 2,763.39 208,175.93 5,761.90 408.055.98 8.137.89 17,804.20 758.32 828,546.06 68.097.65 105,812.39 277,058.59 3.255.36 27.906.41 84,973.34 13,576.81 20.119.60 815,317.15 8,736.85 13,941.04 71,888.60 4.805.65 2,278,166.63 1.634,325.17 68.097.65 105,812.39 371,408.42 275.792.23 53.185.02 84,973.34 13,576.81 20.119.60 1,089,387.95 140,024.15 59,020.98 156.981.82 Total Current assets: 8,064,428.24 357,709.87 678,805.56 2,798,982.71 3,995,481.63 14,021,221.99 29,916,630.00 Noncurrent assets: Advances to other funds Total Noncurrent assets: 844,918.69 844,918.69 844,918.69 844,918.69 $ 8,909,346.93 $ 357,709.87 $ 678,805.56 $ 2.798,982.71 $ 3,995,481.63 $ 14,021,221.99 $ 30,761,548.69Total assets See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau Balance Sheet Governmental Funds For the Year Ended June 30, 2012 General Airport Park and Recreation Capital Improvement Sales Tax- Water System Imp Trans Sales Tax Trust Fund IV Other Governmental Funds Total Governmental Funds LIABILITIES AND FUND BALANCES Current liabilities: Accounts payable Salaries and benefits payable other liabilities Due to other governments Payable to other funds Unearned revenues Deferred revenues $ 241,693.27 54,759.84 167,692.48 18,000.00 201,093.81 $ 143,094.46 2,616.91 47,533.37 1,694.00 $ 129,143.98 70,029.62 41,107.04 51,911.50 $ $ 933,244.05 $ 879,384.18 751.38 177.66 2,206.64 140,024.15 291,950.47 $ 2,326,559.94 128,157.75 256,510.55 2,206.64 140,024.15 71,605.50 493,044.28 Total Current liabilities: 683,239.40 194,938.74 292,192.14 933,244.05 1,314,494.48 3,418,108.81 N .j:::.. Non current liabilities: Advances from other funds Total Non current liabilities: Total liabilities 683,239.40 194,938.74 292,192.14 933,244.05 1,314,494.48 3,418,108.81 Fund balances: Nonspendable Restricted AsSigned Unassigned Total fund balances 971,436.98 4,020,901.45 118,796.50 3,114,972.60 8,226,107.53 15,859.10 146,912.03 162,771.13 2,763.39 383,850.03 386,613.42 2,798,982.71 2,798,982.71 3,062,237.58 3,062,237.58 13,340.04 10,876,989.90 1,816,397.57 12,706,727.51 1,003,399.51 20,759,111.64 2,465,956.13 3,114,972.60 27,343,439.88 Total liabilities and fund balances $ 8,909,346.93 $ 357,709.87 $ 678,805.56 $ 2,798,982.71 $ 3,995,481.63 $ 14,021,221.99 $ 30,761,548.69 See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Assets For the Year Ended June 30,2012 Fund balances of governmental funds $ 27.343.439.88 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. (21,656,970.56) Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds, net of accumulated depreciation of $74,050,795.75. 163,244,851.97 N VI Internal service funds are used by management to charge the costs of management information systems. fleet management. employee fringe benefits, workmen's compensation, and equipment replacement to individual funds. 6,328,964.08 Other long-term assets are not available to pay for current-period expenditures and, therefore are deferred in the funds. 493,044.28 Other accrued expenses which are not payable from current-period revenues are included in governmental activities in the statement of net assets. (1,171.128.17) Net assets of governmental activities $ 174.582,201.48 City of Cape Girardeau Statement of Revenues, Expenditures, and Changes In.Fund Balances Governmental Funds For the Year Ended June 30,2012 Capilallmprovement Transportalion Other Total Pari< and Sales Tax-Sales Tax Governmenlal Governmental General Airport Recreation Water S~tem Imp Trust Fund IV Funds Funds REVENUES Taxes $ 15,711,509.61 $ $ $ 2,331,832,70 $ 4,522,317.81 $ 11.736,398,86 $ 34,302,058,98 Licenses & permits 1,567,135,53 3,109.00 1,570,244.53 Intergovernmental 1,036,422.58 225,617.52 30,000,00 2,621,174.75 4,113,214.65 Charges for services 257,255,07 316,925.84 1,279,816.68 53,745.39 1,907,742.98 Intemal charges 1,084,452.10 1,084,452.10 Fines and forfeits 963,252.22 963,252.22 Miscellaneous 345,835,19 229,263.79 13,283,48 166,174.26 754,558.72 Investment revenue 106.424.86 865.73 4,759,65 71,898,86 63,163.36 238,760,62 485,673,08 Special assessments 23,388,95 102,728,58 126,117.53 Total revenues 21,095,676,11 772.672.88 1,297,859,61 2.403.731,56 4,615.481.17 15,122,091.48 45.307.512.99 EXPENDITURES Current Administrative 1,742,587,66 1,282,624,16 2.010,354.10 5,035.575.94 Developmenl Services 2,265,837.61 36.937.62 66,152.67 727,422.86 3,098,351.16 Parl<s and Recreation 1,830,322.98 2,248,746.39 66,016.92 4,145,088,29 Public Safely 11,976.661.16 344,406,04 12,32.1,269,20 tv 0'1 PublicWOfks Debl Service: 2,359,163.47 2,359,163,47 Administralive charges 267.38 58,406,05 6,191.63 62,a85,06 Inlerest 62,834.15 810,294.47 738,153.26 1,611,261.68 Principal 96.000.00 15,306,800.00 2,639,118.31 18,041,918.31 Capital outlay Admlnistrallve 35,856,29 5,525.00 41,381.29 Capital Improvements 3,182,578.71 6,928.495.91 10,111,07462 Pal1<s and Recreation 575,009.12 575,009.12 Public Safely 134,583.47 262,715,54 397,299.01 PublicWorl<s 26.634.65 5,517.49 32,152.14 Total expenditures 20,530.969,04 2,248,748.39 16,212,438.14 3,246,731.56 14,303.413.18 57,832,449.49 Excess (deficiency) of revenues over expenditures 584,707.Q7 (515,476.28) (950,888.58) (13,806,706.58) 1,366,749,59 618,678.28 (12.524,936.50) OTHER FINANCING SOURCES (USES) . Transfers out (4,156,970,93) (8,891,102.80) (13,048,073.73) Transfers In 4,791,917.07 527,563.46 944,843.34 15,248,651.57 135,000.00 5,105.052.57 26,753,028.01 Asset disposition 557,328.27 6,287,79 4,852.61 568,468.67 Total other financing sources and uses 1,192,274,41 533,851.25 949,695.95 15,248,651~57 135,000,00 (3,766,050.23) 14,273,422.95 Net Change In fund balances 1.758,981,46 18,374.97 (1,192.63) 1.439.944,99 1,501,749.59 (2,967,371.95) 1,748,486.45 Fund balances -beginning 6,450,686,39 145,683,54 414,835.27 1,361,474.50 1,549,005.51 15,742,842.19 25,664,527.40 Prior period adjustment 18,439.66 (1,287.38) (27,029.22) (2.4 36.78) 11.482.48 (68,742.73) (69,573,97) Fund balances ending $ 8,226,107.53 $ 162,771.13_ $ 386,613,42 _ $ 2,798,962.71 $ __ 3,062,23I,58 .$ 12,706,727.5!. $ 27,343.439.88 See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2012 Net change in fund balances -Iotal governmental funds $ 1.748,486.45 Amounts reported for governmental activities in the statement of activities are different because: Reductions of debt are reported in the fund financial statements as an expense but are not induded in the government wide statement of activities. 17,760,027.75 Governmental fund report capital oulays as expenditures. However, In the statement of activities, the cost of those assets are allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense exceeded capHal ouUays in the current period. 556,269.14 tv -.....l Intemal service funds are used by management 10 charge the costs of intolll1ation technology, fleet management, employee tringe benefrts, worl<men's compensation, and equipment replacement to individual funds. Other 10ng-telll1 assets are not available to pay for currenl· period expenditures and, therefore are deferred in the funds. 339,519.39 (229,469.69) Some expenses reported in the slatement of activities do nol require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 234,162.16 Change in net assets of governmental activities $ 20,408,995.20 See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau Statement of Net Assets Proprietary Funds For the Year Ended June 3D, 2012 Business-type Activities -Enterprise Funds Total Gov. Activities Sewer Water Solid Waste Golf Course Softball ComQlex Proprietary Funds Internal Service Funds ASSETS Current assets: Cash and cash equivalents Investments Utilities charges, net Special assessments Other Notes receivable Interest Grants Inventory Prepaid items $ 47,143.67 1,629,425.41 1,081,462.70 33,755.66 17,341.05 10,701.09 6,766.07 81,758.99 $ 145,680.57 5,373,296.79 1,159,868.29 9,126.79 10,442.25 15,279.75 1,276.52 656,930.72 29,399.01 $ 24,696.80 952,592.78 516,299.12 59.00 2,225.83 155.24 20,074.10 $ 2,153.59 78,851.48 109.00 184.97 8,246.05 461.37 $ 2,653.37 97,150.38 33.00 227.51 55.82 18,698.23 1,171.34 $ 222,328.00 8,131,316.84 2,757,630.11 42,882.45 27,984.30 28.619.15 8,253.65 683,875.00 132,864.81 $ 144,586.91 5,090,296.40 15,413.11 231,568.94 11,247.66 90.00 159,608.11 39,394.78 tv 00 Total Currents assets: ~908,354.64 7,401 ,300.69 1,516,102.87 90,006.46 119,989.~ 12~035,754.31 .. 5,692,205.91 Noncurrent assets: Rest Cash and Cash Equivalents Rest Investments Land Buildings Equipment Other improvements Construction in progress Accumulated depreciation 1,393,243.41 133,195.18 534,925.49 8,078,346.00 3,342,923.17 71,.032,664.55 3,053,978.48 (34,731,864.2.0) 20,120.79 1,462,464.64 223,646.63 2,069,208.07 54,670,243.34 300,759.85 (14,832,144.03) 107.86 3,949.28 112,239.55 1,082,093.13 3,630,631.70 333,132.92 (2,675,1.01.6.0) 163,674.80 100,453.93 1,972,744.42 (686,752.43) 931,264.25 136,876.37 1,557,642.35 24,502.5.0 (286,194.65) 1,413,472.06 1,599,609.10 647,165.04 10,479,024.81 9,280,093.24 129,566,427.58 3,379,240.83 (53,212,056.91 ) 37,500.00 53,906.45 4,861,930.92 155,653.19 3,77.0.79 (3,171,267 . .01) Total Noncurrent assets: 52,837,412 . .08 43,914,299.29 2,487,052.84 1,550,120.72 2,364,090.82 103,152,975.75 1,941,494.34 Total assets $ 55,745,766.72. 51,315,!j99.98 $ 4,0.03,155.71 $1,640,127.18 $_MM,.o80.47 15,188,73.0.06 $ 7,633,700.25 See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau Statement of Net Assets Proprietary Funds For the Year Ended June 30, 2012 Business-type Activities -Enterprise Funds Total Gov. Activities Sewer Water Solid Waste Golf Course Softball Com21ex Proprietary Funds Internal Service Funds LIABILITIES Current liabilities: Accounts payable Salaries and benefits payable Interest payable Other liabilities Estimated claims payable Due to other govemments Advances from other funds Notes Payable Revenue bonds payable Special oblig bonds payable $ 258,054.00 50,428.63 110,816.91 227,616.62 35,633.89 6,750.00 2,260,000.00 $ 676,650.27 9,506.90 22,733.33 222,363.57 43,829.78 2,360,000.00 $ 92,324.79 42,250.42 108,421.19 26,000.00 23,254.00 140,000.00 $ 17,045.08 35,573.30 9,685.55 29,476.49 $ 59,n2.94 48,407.24 18,351.42 $ 1,103,847.08 186,166.49 133,550.24 568,086.93 79,463.67 73,827.91 30,004.00 4,620,000.00 140,000.00 $ 157,948.05 36,866.56 120.83 510,500.00 40,000.00 IV \0 Total Current liabilities: 2,949.300.05 3,335,083.85 432,250.40 91.780.42 126,531.60 6,934,946.32 745,435.44 Noncurrent liabilities: Net OPEB Obligation Advances from other funds Notes Payable Revenue bonds payable Special oblig bonds payable Est landfill post closure cost 87,970.00 175,500.00 16,249,411.95 26,725.00 13,339,027.45 n,157.00 530,817.85 604,604.94 8n,536.50 39,000.00 31,730.00 133,603.17 9,682.00 106,669.76 233,264.00 771,090.78 780,104.94 29,588,439.40 8n,536.50 39,000.00 114,467.00 472.07 Total Non current liabilities: 16,512,881.95 13,365?52.45 2,129,116.29 165,333.17 116,351.76 32,289,435.62 114,939.07 Total liabilities ~462,182.00 16,700,836.30 2,561,3§6.69 . 257,113.59 242,883.36 39,224,381.94 860,374.51 NET ASSETS Invested in capital assets, net of related Restricted for debt service Restricted for depr and replacement Restricted for emergency fund Unrestricted 32,682,199.59 127,000.00 1,028,645.00 2,445,740.13 26,758,747.18 568,333.33 150,000.00 1,245,739.00 5,891,944.17 856,632.88 514,723.00 70,433.14 1,550,120.72 (167,107.13) 2,364,090.82 (122,893.71 ) 64,211,791.19 568,333.33 2n,OOO.00 2,789,107.00 8,118,116.60 1,901,522.78 4,871,802.96 Total net assets $ 36,283,584.72 $ 34,614?63.68 $ 1,441,789.02 $ 1,383,013.59 $ 2,241,197.11 75,964,348.12 $ 6,n3,325.74 Adjustments 10 reflectihe consolidation of internal service fund activities related to enterprise funds' nel asset. of business·type activities 444,361.66 $ 76,408,709.78 See Accompanying Notes to BasiC Financial Slatements. City of Cape Girardeau Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended June 30, 2012 Total Gov. Activities Sewer Water Solid Waste Golf Course Softball ComElex Proprietary Funds Internal Service Funds Operating revenues: Residential charges Commercial charges Transfer station charges Other fees and charges Concession revenues Internal charges Usage fees Miscellaneous Total operating revenues $ 4,781,745.71 2,748,652.28 124,929.31 9,525.07 250.42 7,665,102.79 $ 4,011,000.91 2,704,409.70 221,425.25 26,072.98 6,962,908.84 $ 2,211,227.99 35,121.66 948,100.83 90,949.59 53,111.52 3,338,511.59 $ 42,730.48 455,738.50 1,370.34 499,839.32 $ 77,600.20 183,113.20 2,685.65 263,399.05 $ 11,003,974.61 5,488,183.64 948,100.83 437,304.15 120,330.68 9,525.07 638,851.70 83,490.91 18,729,761.59 $ 6,099,169.06 3,298.95 __ 6,102,468.01 W 0 Operating expenses: Personnel services Materials & supplies Contractual services General operating expenses Special programs Internal service expenses Depreciation Total operating expenses Operating Income (loss) 1,455,525.15 498,548.13 1.263,333.49 490,942.90 16.978.09 178,113.24 2,149,021.66 6,052,462.66 1,612,640 t:t 249,624.19 1,089,858.98 2,817,109.77 388,953.21 392,710.66 124,009.75 1,523,960.45 6,586,22701 376,681.83 1,051,718.72 260,146.55 1.279,451.88 36,945.74 125.482.03 345,158.52 436,354.38 3,535,257.82 (196,746.23) 391,066.18 108,632.41 22,220.73 8,499.72 6.186.37 38,541.18 119,288.98 694,435.57 (194,596.25) 516,499.04 115,799.77 27,711.04 3.566.66 38,500.86 29,589.32 144,897.80 876,564.49 (613,165.44) 3,664,433.28 2,072,985.84 5,409,826.91 928,908.23 579.858.01 715,412.01 4,373,523.27 17,744,947.55 984,814.04 803,340.74 444.740.85 4.171,436.38 31,835.49 4,112.00 410,946.19 5,866,411.65 236,056.36 Nonoperating revenues (expenses) Intergovernmental Investment revenue Gain from sale of asset Interest and other charges Issuance cost amortization Loss from sale of asset Total nonoperating revenues (expenses) 4,592.45 125,298.37 7,654.25 (738,355.84) (216,408.95) (817,21972) 146.25 120,444.25 4,490.94 (199,709.63) (158,621.97) (233,250.1ID. 13,594.39 20,669.70 21,791.50 (44,090.89) (5,551.84) (1,411.14) 5,001.72 532.22 15,723.42 (9,210.42) 7,045.22 162.49 140.40 8,631,87 (6,908.77) 2,025.99 18,495.58 267,084.94 58,291.98 (998,275.55) (380,582.76) (1,411.14) (1,036,396.95) 84,330.56 39,035.68 (2,527.73) (546.02) (274.99) 120,017.50 Income (loss) before contributions and transfers 795,420.41 143,431.67 (191,744.51) (187,551.03) (611,139.45) (51,582.91) 356,073.86 Contributed capital -connect fee Contributed capital -developers Contributed capital -donations Contributed capital· government Transfers in Transfers out Change in net assets 100,221.00 92,133.56 288,376.24 2,072,059.29 !2,571,401.71) 776,808.79 376,387.56 2,287,014.48 10,377.20 (13,855,446.28) (11,038,235.37) 13,777.00 5,500.00 (172,467.51) 12,088.90 104,892.19 (70,569.94) 24,502.50 483,101.08 (103,535.87) 100,221.00 468,521.12 25,865.90 2,599,893.22 2,675,929.76 !16,426,847.99) (10,607,999.90) 66,537.87 (20,573.92) 402,037.81 Total net assets -beginning Prior period adjustment Total net assets -ending $ 35,484,097.48 22,678.45 36,283,584.72 45,654,756.79 (1,757.74) $ 34,614,763.68 1,613,079.66 1,176.87 $ 1,441,789.02 1,453,471.73 111.80 $ 1,383,013.59 2,343,982.99 749.99 $ 2,241,197.11 86,549,388.65 22,959.37 $ 75,964,348.12 6,362,429.25 8,858.68 $ 6,773,325.74 Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds. 62,518.42 Change in net assets of business-type activities. $ (10.545,48.1..48) See Accompaying Notes to Basic FinanCial Statements. Sewer Water CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 7,375,197.07 $ 6,919,386.23 Receipts from interfund services 9,525.07 Other receipts Payments to suppliers (1,997,53U7) (4,551,907.53) Payments for salaries and benefits (1,552,991.07) (253,379.52) Payments for interfund services used (185,126.59) (124,724.51) Payments made in lieu of franchise taxes (362,004.66) (341,479.38) Remittance of taxes collected from customers (276,001.96) Net cash provided (used) by operating activities 3,267,008.23 1,371,893.33 W ...... CASH FLOWS FROM NONCAPiTAL FINANCING ACTIVITIES Transfers from other funds 434,380.29 Transfers to other funds (2,513,700.00) Advance repayment to other funds Interest paid to other funds Subsidy from federal grant 50,229.18 Subsidy from local grant Net cash (used) by noncapital financing (2,029,090.53) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions 122,415.52 Principal received on promissory note Interest received on promissory note Proceeds from sales of capital assets 7,654.25 Proceeds from capital debt Purchase of capital assets (140,693,90) Acquisition and construction of capital assets (2,186,105.10) Principal paid on capital debt (1,870,671.75) Interest paid on capital debt (1,172,900.68) Transfers in for capital acquisitions 12,765.00 Transfers out for capital acquisitions (57,701.71) Transfers in for payment of capital related debt 1,624,914.00 Transfers out for payment of capital related debt Net cash (used) by capital and related financing activities (3,660,330.37) 5,350.25 5,350.25 8,096.12 8,488.74 13,852,090.55 (68,461.67) (215,046.62) (965,000.00) (199,468.35) 10,377.20 (6,875.00) (13,848,571.28) (1,424,390.31) City of Cape Girardeau Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2012 Business-type Activities -Enterprise Funds Solid Waste Golf Course $ 3,195,625.84 35,121.66 (1,711,566.34) (1,086,960.99) (345,158.52) $ 546,956.16 750.00 (193,000.76) (401,839.90) (42,366.62) 87,039.65 (87,50714) 104,892.19 (26,000.00) (7,960.88) 1,164.27 13,594.39 (19,202.22) (28,O56.14) (9,210.42) ---6-7,625.63 13,777.00 22,562.50 15,723.42 (192,595.77) (34,904.41) (176,508.06) (56,366.82) 5,500.00 (416,535.56) 15,723.42 See Accompanying Notes to Basic Financial Statements. Softball Complex Total Proprietary Funds Government Activities Internal Service Funds $ 355,509.92 23,849.56 (313,571.31) (535,726.35) (29,589.32) $ 18,394,675.22 44,646.73 24,599.56 (8,767,585.53) (3,630,917.83) (726,965.56) (723,484.00) (276,001.96) $ 98,241.05 5,997,275.33 4,269.95 (4,376,046.01) (824,355.37) (4,995.56) (499,527.50) 4,138,966.57 894,409.39 483,101.08 (17,467.14) (6,908.77) 275.25 459,000.42 143.37 6,956.25 9,099.62 1,022,373.56 (2,513,700.00) (15,073.92) (71,523.28) (24,080.07) (237.00) 57,016.95 675.00 13,594.39 (1,516,316.45) (14,635.96) 144,432.01 15,073.92 4,197.54 63,385.16 39,035.68 13,652,090.55 (401,771.34) (511,691.91) (2,436,056.13) (3,012,179.81 ) (40,000.00) (1.428,741.85) (2,850.00) 28,642.20 66,537.87 (64,576.71) (5,500.00) 1,624,914.00 (13,648,571.28) (5,478,433.20) (435,196.90) City of Cape Girardeau Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2012 Business-type Activities -Enterprise Funds Government Total Activities Softball Proprietary Internal Service Sewer Water Solid Waste Golf Course Complex Funds Funds CASH FLOWS FROM INVESTING ACTIVITIES Interest received 126,571.36 144,168.86 28,861.17 952.37 956.25 301,528.01 97,034.68 Net change in pooled investments 1,450,170.18 (202,120.42) 289,504.93 1,671.70 27,415.02 1,566,641.41 (602,554.06) Proceeds from sales and maturities of investments Purchase of investments Net cash provided by Investing activities 1,576,741.54 (57,953.56) 318,386.10 2,624.07 28.371.27 1,868,169.42 (505,519.40) Net Increase (decrease) in cash and cash equivalents (645,611.13) (105,100.29) (32.312.03) (1,534.02) (3,056.19) (987,613.68) (60,942.89) Balances -beginning of year 2,280,266.96 270,901.65 57,116.69 3,687.61 5,709.56 2,617,682.47 205,529.60 w tv Prior period adjustment 5,731.25 5,731.25 Balances ­end of the year $ 1,440,38708 $ 165.801.36 $ 24,604.66 $ 2,153:59 $ 2,653.37 $ 1,635,600.06 $ 144,568.91 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 1,612,640.13 $ 376,681.83 $ (196,746.23) $ (194,596.25) $ (613,165.44) $ 984,614.04 $ 236,056.38 Adjustments to reconcile operating income to net .cash provided (used) by operating activities: Depreciation expense 2,149,021.66 1,523,960.45 436,354.38 119,288.98 144,897.80 4,373,523.27 410,946.19 Changes in assets and liabilities: Accounts payable -supplier (175,981.80) (46,540.47) (37,805.64) (1,918.61) (32,184.40) (294,230.92) 206,015.06 Accounts payable -other (4,097.79) 5,334.56 3,155.77 364.05 23,849.56 28,606.15 Salaries & benefits payable (97,465.92) (3,755.33) (35,262.27) (10,173.72) (19,227.31) (168,464.55) (21,014.63) Customer receivables (219,076.56) (286,595.16) (83,744.24) 1,664,17 46.65 (587,705.16) (3,652.68) Other operating receivables (1,928.19) Prepaid expenses 2,028.53 5,238.39 887.88 195.55 (1,029.99) 7,320.38 56,311.16 Inventory (202,430.94) (1,731.31) (2,714.37) (206,676.62) 11,676.10 Net cash provided by operating activities $ 3,267,068.23 $ 1,371,893.33 $ 87,039.65 $ (87,507.14) $ (499,527.50) $ 4,138,966.57 $ 894.409.39 See Accompanying Notes to Basic FinanCial Statements. City of Cape Girardeau Statement of Net Assets Fiduciary Funds For the Year Ended June 30. 2012 w w ASSETS Cash and cash equivalents Investments Real estate taxes Personal property taxes Other Interest Total assets LIABILITIES Accounts payable Salaries and benefits payable Other liabilities Total Liabilities $ $ $ $ Agency Funds 73.741.65 2.579,281.57 52,332.48 4,036.64 332.31 6,490.57 2.716,215.22 27,406.90 6,271.34 2,682,536.98 2,716.215.22 See Accompanying Notes to Basic Financial Statements. City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 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 of the 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 CGPFA board of directors consists of City officials and City Council members. Due to the significant City influence and financial accountability, the activities of the CGPF A are blended with the financial presentation of the City. The CGPF A executed a bond indenture for the purpose of issuing and securing the Series 2009 Bonds. These bonds were 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. The CGPF A 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 of the Revised Statutes of Missouri. The (CGMDF) and (CGPSF) board of directors consist of City officials and the (CGPDF) board of directors consists of Park 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 of the 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, 2012 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued 2. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities ofthe primary government and its component units. The effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurementfocus and the accrual basis ofaccounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. With the economic resources measurement focus, all assets and liabilities associated with operations are reflected in the statement of net assets. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 30 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Those revenues susceptible to accrual are property taxes, franchise taxes, special assessments, licenses, interest revenue, and charges for services. Sales taxes collected and held by the state at year-end on behalf of the City, also are recognized as revenue. Fines and permit revenues are not susceptible to accrual because, generally, they are not measurable until received in cash. With the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. 35 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING 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 airport fund accounts for the resources used in the operation and maintenance of municipal airport facilities. The parks and recreation fund accounts for the resources used in the operation of park and recreational activities. The capital improvement sales tax -water projects fund accounts for the receipt and expenditure of a capital improvement sales tax that was approved by voters to fund major capital improvement projects to the City's water system. The transportation sales tax trust fund IV accounts for the receipt and expenditure of a capital improvement sales tax that was approved by voters for street construction and improvements. 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation -Continued The City reports the following major proprietary funds: The sewer fund accounts for the operation of the City's sewage treatment plant, sewage pumping stations, and collection systems. The water fund accounts for the operation ofthe City's water treatment plants and distribution systems. The solid waste fund accounts for the operation of the City'S residential solid waste and recycling programs. The golffund accounts for the operation of the municipal golf course. The softball complexfund accounts for the operation of the City'S softball complex, and maintenance of the City's soccer, baseball, and softball fields. Additionally, the City reports the following fund types: Internal service funds account for management information systems, fleet management, employee benefits, workers' compensation, and equipment leasing provided to other departments or agencies of the City, on a cost reimbursement basis. Agency funds account for the operations of the Cape Girardeau Public Library. 36 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2012 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option offollowing subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's enterprise function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. It is the City's policy to first use restricted net assets prior to the use of unrestricted net assets when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. Amounts reported as program revenues include I) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 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 historical cost if actual historical cost is not available. Additions are recorded at cost or, if contributed property, at their estimated fair value at time of contribution. Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. The sale or disposal of capital assets is recorded by removing cost and accumulated depreciation and charging the resulting gain or loss to income. 37 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 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 of governmental activities in the statement ofactivities. 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 of Net 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 of the face amount of bonds payable whereas issuance costs are recorded as deferred charges. The accounting treatment of bond premiums, discounts, and issuance costs used for 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, 2012 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 each fund based on its average equity balance in the pool. Cash includes amounts in repurchase agreements and other short-term investments with a maturity date within three months of the date of purchase. Investments, with a maturity date ofone year or more at the time of purchase, are recorded at fair value. All other cash and investments are recorded at cost or amortized cost. 10. Prepaid Items Payments made to vendors for services that will benefit periods beyond June 30, 2012 are recorded as prepaid items. 11. Restricted Assets Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for the repayment of such bonds, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. The "revenue bond construction" account is used to report those proceeds of revenue bond issuances that are restricted for use in construction. The "revenue bond current debt service" account is used to report resources set aside to make up potential future deficiencies in the revenue bond current debt service account. 12. Long-Term Obligations Only that portion of long-term obligations expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in the appropriate proprietary fund. Long-term liabilities expected to be financed from governmental activities are accounted for in the government-wide statement of net assets. 13. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Only net transfers between governmental and business-type activities are reflected on the government-wide statement of activities. 39 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued 14. Short-Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "interfund receivables/payables" on the governmental balance sheet and proprietary statement of net assets. Only net receivables between governmental and business-type activities are reflected as internal balances on the government-wide statement of net assets. 15. Advances to Other Funds Noncurrent portions of long-term interfund loan receivables and payables are reported as advances in the governmental balance sheet and proprietary statement of net assets. Fund balances are reserved on the governmental balance sheet for 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 prior to April 1, 2012 with five or more years of service and who are eligible for LAGERS retirement (Note G) or after April I ,2012 with five or more years of service and have reached their normal retirement ages through LAGERS. Currently, seventy-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. Forthe year ending June 30, 2012, those costs totaled $511,586. 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 (lOth) 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 were two retiree spouses participating in the health and dental insurance programs as of June 30, 2012. 40 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE A M SUMMARY OF SIGNIFICANT 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, 2012 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 through December 18,2012, 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 available for use by all funds. Each fund type's portion of this pool is displayed on the combined statement of assets, liabilities, and fund balances arising from cash transactions as "Cash and Cash Equivalents" under each fund's caption. The deposits and investments held at June 30, 2012, and reported at fair value, are as follows: Deposits: Demand Deposits $ 311,898 Interest Bearing Deposit Accounts 2,264,341 Total Deposits $ 2,576,239 Investments: Negotiable Instruments $ 35,410,534 Federal Home Loan Bank 502,160 Federal National Mortgage Association 2,391,944 Federal Home Loan Mortgage Corporation 1,512,559 US Treasury Note 350,260 Total Investments $ 40.167.457 Total Deposits and Investments $ 42,743,62.6 41 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE B -DEPOSITS AND INVESTMENTS -Continued Reconciliation to Statement of Net Assets: $ 1,089,025Cash and Cash Equivalents 33,944,636Investments 1,413,472Restricted Cash and Cash Equivalents 3,643,540Restricted Investments 73,742Fiduciary Cash and Cash Equivalents 2,579,281Fiduciary Investments $ 42.743,696Deposits and Investments, Statement of Net Assets As of June 30, 2012, the City had the following investments: Maturities Fair Value Investment $ 35,410,534 Negotiable Instruments 07/03/2012 -06/06/2017 Federal Home Loan Bank 10/3012014 502,160 2,391,944Federal National Mortgage Assoc. 09/16/2014 -09/21/2018 Federal Home Loan Mort. Corp. 04/2312014 -08/1 0/2016 1,512,559 350,260US Treasury Note 10/3112012 $ 40,167.451Total Custodial Credit Risk: Deposits in financial institutions, reported as components of cash, cash equivalents, and investments, had a bank balance of$43,267,699 at June 30, 2012, 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, 2012 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, 2012 NOTE B -DEPOSITS AND 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, 2012, 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 15, 2011, for collection during this fiscal year and were due on or before December 31. Most of the 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 $ .30181100.00 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, 2012 are as follows: Special General Business Public Debt Revenue District Health Service Total Current property tax $45,589 $3,834 $ 8,535 $ $57,958 Delinquent property tax 27,408 3,845 5,130 19 36,402 Reserve for doubtful Property taxes (14,865) (2,782) (19) (17,666) Net property tax receivable j58!132 $7/]79 $10~883 j7~69_4 43 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2012 NOTE D -CHANGES IN CAPITAL ASSETS A summary ofthe capital assets for governmental activities included on the government-wide statement of net assets for the year ended June 30, 2012 is as follows: Balance Current Year Balance ~l,2011 Additions Deductions Depreciation* June 30, 2012*'" Land $ 5,402,766 $ 8,729 $ 485,176 $ $ 4,926,319 Buildings 23,668,979 68,856 983,343 22,754,492 Improvements other than buildings 11,026,806 81,875 744,779 10,363,902 Equipment 5,785,692 1,436,434 4,084 1,198,200 6,019,842 Infrastructure 116,018,659 7,197,726 4,312,609 118,903,776 Construction in progress _2,632,693 6,243,097 2,218,015 Total capital assets U64,).15,595 ~t~J1 ~16~.1 S6,346 * 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 part of the governmental activities assets included on the government-wide Statement of Net Assets. Following is a summary ofthe capital assets for business-type activities on the government-wide statement of net assets for the year ended June 30, 2012: Balance Current Year Balance July 1,2011 Additions Deductions Depreciation June 30, 2012 Land $ 161,990 $ 485,175 $ $ $ 647,165 Buildings 2,701,428 54,368 260,161 2,495,635 Improvements other than buildings 85,489,842 7,212,340 3,285,008 89,417,174 Equipment 4,515,275 548,038 34,279 828,354 4,200,680 Construction in progress 5,663,362 4,832,780 7,116,902 Total capital assets ~98,53L~97 $ 13,132.101 ~7,151,181 $ 4,373,523 $ 100,139,S24 44 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2012 NOTE D -CHANGES IN CAPITAL ASSETS -Continued Depreciation expense was charged to functions as follows in the statement of activities: Governmental Activities: Administrative $ 443,189 Development Services 48,375 Parks and Recreation 950,868 Public Safety 750,002 Public Works 5,046,497 Total $ 7,238,931 Business-Type Activities: Golf Course $ 119,289 Sewer 2,149,022 Softball Complex 144,898 Solid Waste 436,354 Water 1,523,960 Total $4.373.2.3. NOTE E -LONG-TERM OBLIGATIONS The following is a summary of changes in the long-term debt from governmental activities included on the government-wide statement of net assets for the year ended June 30, 2012: Governmental Other Revenue Activities Debt* Bonds Total Debt payable July 1,201 I $ 21,765,060 $ 16,2 I 8,078 $ 37,983,138 DiscountlPremium amortization 18,728 26,322 45,050 Retired (2,775,119) (15,306,800) (18,081,919) Additions Debt payable June 30, 2012 $ J9,OQ8,669 $.--.2.3 7 6()Q $ 12,946,262 *Other Dcbt includes Notes Payable, Special Obligation Bonds, Leasehold Revenue Bonds, and Certificates ofparticipation. 45 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2012 NOTE E -LONG-TERM OBLIGATIONS -Continued The following is a summary of changes in the long-term debt from business-type activities included on the government-wide statement of net assets for the year ended June 30, 2012: Business-Type Activities Other Debt* Revenue Bonds Total Bonds payable at July 1,2011 Discount Premium Amortization Accumulated Interest Bonds Retired Bonds Issued $ 2,020,744 (3,090) (190,009) $ 22,961,374 (20,571) 272,177 (3,203,000) 14,198,459 $ 24,982,118 (23,661) 272,177 (3,393,009) 14,198,459 Bonds payable at June 30, 2012 U~!645 $ 34.208A3.2 $ 36,036,084 *Other Debt includes Notes Payable and Special Obligation Bonds 46 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E ~ LONG TERM OBLIGATIONS ~ Continued Bonds payable for governmental and business-type activities at June 30, 2012 are comprised of the following individual issues: $ 155,000 Special Obligation Refunding and Improvement Bonds, Series 2002: Year Ending Interest Principal Interest June 30, Rate Due Due 2013 4.10% $ 155,000 $ 3,177 $ 158,177 $ 155~000 $ 3~111 Principal payments are made annually on October 1, and interest payments are made semi-annually on October 1 and April 1. On October 22, 2002 the City of Cape Girardeau issued $3,125,000 of Special Obligation Refunding and Improvement Bonds Series 2002 with interest rates varying from 3.00% to 4.50%. The bonds are special obligations of the City payable solely from the income and revenues provided for the year plus any unencumbered balances from prior years. The bonds were issued by the City for the purpose of providing funds to (a) pay the costs of refunding the Building and Equipment Leasehold Refunding and Improvement Revenue Bonds, Series 1993, issued on behalf of the City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount of $1,085,000, (b) pay the costs of refunding the Certificates of Participation (Capital Improvements Projects), Series 1994A, issued on behalf of the City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount of$1 ,255,000 and prepaying the leasehold interest represented thereby, (c) pay the costs of constructing certain street improvements within the City, and (d) pay the costs of issuing the Bonds, under the authority of and in full compliance with the City's Charter and the Constitution and laws of the State of Missouri, and pursuant to an ordinance duly passed (the "Ordinance") and proceedings duly and legally had by the governing body of the City. The outstanding bond liability for the Special Obligation Refunding and Improvement Bonds Series 2002 is allocated as follows: $155,000 for Governmental activities. 47 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $1,705,000 Waterworks System Refunding Revenue Bonds Series 2006A due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2013 4.00% $1,705,000 $ 68,200 $1,773,200 $lf7Q5!000 $ 68!200 $1,773 1200 Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1 and September 1. On January 3, 2006 the City issued $7,160,000 of Waterworks System Refunding Revenue Bonds Series 2006A with interest rates varying from 3.5% to 4.0%. The bonds are special limited obligations 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 principal amount of Waterworks System Refunding Revenue Bonds, Series 1995. 48 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $ 420,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1991 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Total 2013 6.875% $ 205,000 $ 28,875 $ 233,875 2014 6.875 215,000 14,781 229,781 -.U~Q,OOO L43~656 $ 463!656 These bonds are dated December 1, 1991. The proceeds of the bond issue were used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on June 1, and interest payments are made semi-annually on June 1 and December 1. The interest due on the Series 1991 Sewer System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the State of Missouri Department 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 of Missouri Department ofNatural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2012 was $210,000. 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 fiscal year ended June 30, 2012, City interest expense was reduced by $11,806 as a result of this transaction. Over the remaining life of these bonds, the City will receive net present value benefits of approximately $21,959 from this transaction. 49 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $ 111.000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1993 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2013 5.400% $ 35,000 $ 5,049 $ 40,049 2014 5.400 37,000 3,106 40,106 2015 5.400 39,000 1,053 40,053 $111!000 $ 9!208 $ 120!208 These bonds are dated August 1, 1993. The proceeds of the bond issue were used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on March 1, and interest payments are made semi·annually on March 1 and September 1. The interest due on the Series 1993 Sewer System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the State of Missouri Department 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 of the reserve fund. The balance of the reserve fund at June 30, 2012 was $77,700. The reserve fund yields 5.15%. 50 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $ 1,523,558 Water Pollution Control Revenue Bonds (State Revolving Fund Program) Series 19950 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2013 2014 2015 2016 2017 6.150% 6.200 6.200 6.250 6.250 $ 354,978 326,281 303,920 278,844 259,535 $ 670,022 683,719 696,080 706,156 715,465 $ 1,025,000 1,010,000 1,000,000 985,000 975,000 W73.S58 L3~4:Z1A42 $4!995 I OOO 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 ofNatural Resources deposits an amount equal to 70% of the disbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be 70% of the principal amount less the original issue discount. As bonds are retired 70% of the amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2012 was $1,060,490. The reserve fund yields 5.83%. 51 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $ 6,180,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1996 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2013 2014 2015 2016 2017 2018 2019 5.875% 5.875 5.875 5.900 5.900 5.900 5.900 $ 780,000 800,000 875,000 895,000 920,000 945,000 965,000 $ 364,006 318,181 271,181 219,775 166,970 112,690 56,935 $ 1,144,006 1,118,181 1,146,181 1,114,775 1,086,970 1,057,690 1,021,935 ~J80~000 $1 1509 1 738 $ 7~9!738 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 1. Interest is paid semi-annually on January 1 and July 1 beginning in 1997. The interest due on the Series 1996 Sewerage System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds, the State of Missouri Department of Natural Resources deposits an amount equal to 70% of the disbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve will be $9,474,500. As bonds are retired, 70% ofthe amount of bonds retired will be repaid to the Department of Natural Resources out of the reserve fund. The balance ofthe reserve fund at June 30, 2012 was $4,326,000. The reserve fund yields 5.70%. 52 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued During the fiscal year ended June 30, 2001, certain bonds originally issued by the State Environmental Improvement and Energy Resources Authority as part of the State Revolving Fund Progran: were refund~d. 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 30,2012, City interest expe~se w~ reduced by $22,810 as a result of this transaction. Over the remaining life of these bonds, the CIty WIll receive net present value benefits of approximately $102,868 from this transaction. $ 7,240,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2013 2014 2015 2016 2017 2018 2019 2020 2021 5.500% 5.000 5.625 5.625 5.625 5.300 5,400 5,450 5.500 $ 230,000 250,000 275,000 475,000 555,000 590,000 1,590,000 1,655,000 1,620,000 $ 388,659 376,084 362,099 341,006 312,037 280,793 222,228 134,199 _44,550 $ 618,659 626,084 637,099 816,006 867,037 870,793 1,812,228 1,789,199 1,664,550 $7,240,000 $2A61!655 $ 9)01!655 These bonds are dated November 1,2000. The proceeds ofthe bond issue were used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on July 1, and interest payments are made semi-armually on July I and January 1. The interest due on the Series 2000, Sewer System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the State ofMissouri 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 $5,848,500. As bonds are retired 70% of the amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out ofthe reserve fund. The balance of the reserve fund at June 30, 2012 was $5,109,033.The reserve fund yields 5.16%. 53 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $15,265,000 Waterworks System Revenue Bonds (State Revolving Fund Program) Series 1998 These bonds were dated December 1, 1998. The proceeds ofthe bond issue were used for the extension and improvements to the waterworks system. Principal payments are made annually on January 1. Interest is paid semi-annually on January 1 and July 1 beginning on July 1, 1999. 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 ofNatura1 Resources deposits an amount equal to 33 Al % ofthe 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 ofthe reserve fund. During the year ended June 30, 2012, these bonds were refinanced through the proceeds of the Waterworks System Refunding Bonds Series 2012A. The balance of the reserve fund at June 30, 2012 was $-0-. 54 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $14,365,000 Leasehold Revenue Bonds, Series 2009 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2013 2014 2015 2016 2017 2018 2019 3.700% 3.800 3.900 4.000 4.000 4.000 4.100 $ 1,955,000 2,015,000 2,080,000 2,150,000 2,240,000 2,330,000 1,595,000 $ 531,532 472,882 407,394 334,594 248,594 158,994 65,794 $2,486,532 2,487,882 2,487,394 2,484,594 2,488,594 2,488,994 1,660,794 $14 1365 1000 $21219)84 $16~5841784 The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPF A). 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 1, and interest payments are made semi-annually on April! and October 1. 55 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $3,755;000 Special Obligation Bonds, Series 2005: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2013 3.625% $ 700,000 $ 162,711 $ 862,711 2014 4.000 690,000 137,336 827,336 2015 5.000 1,245,000 109,736 1,354,736 2016 4.000 80,000 47,486 127,486 2017 4.000 85,000 44,286 129,286 2018 4.100 90,000 40,886 130,886 2019 4.125 90,000 37,196 127,196 2020 4.200 95,000 33,484 128,484 2021 4.250 100,000 29,494 129,494 2022 4.250 105,000 25,244 130,244 2023 4.375 110,000 20,781 130,781 2024 4.375 115,000 15,969 130,969 2025 4.375 250,000 10,940 260.940 $3 1755 1000 $4!470,549 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 of providing funds to (a) construct, furnish, and equip a new fire station, renovate and improve existing fire and police stations, reimburse the City for the purchase of a new public works facility, and acquire vehicles for the police and fire departments, (b) refinance various outstanding obligations of the City, (c) fund a debt service reserve fund for the Bonds, and (d) pay the costs of issuing the Bonds, under the authority of and in full compliance with the City's Charter and the Constitution and laws of the State of Missouri, and pursuant to an ordinance duly passed and proceedings duly and legally had by the governing body of the City. 56 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG· TERM OBLIGATIONS -Continued $1,350,000 Bank of America 2006 Promissory Note: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2013 0.9935% $ 100,000 $ 13,166 $ 113,166 2014 0.9935 100,000 12,172 112,172 2015 0.9935 100,000 11 ,179 111,179 2016 0.9935 100,000 10,213 110,213 2017 0.9935 100,000 9,192 109,192 2018 0.9935 100,000 8,198 108,198 2019 0.9935 100,000 7,205 107,205 2020 0.9935 100,000 6,227 106,227 2021 0.9935 100,000 5,218 105,218 2022 0.9935 100,000 4,225 104,225 2023 0.9935 100,000 3,239 103,239 2024 0.9935 100,000 2,237 102,237 2025 0.9935 100,000 1,244 101,244 2026 0.9935 50,000 250 50,250 UJ~O,OOO $ 93,965 $ 1,443,965 On February 9,2006, the City of Cape Girardeau entered into a promissory note with the Bank of America for $2,000,000. The purpose of the note was to finance additional costs on constructing fire station #3, purchase of a site for a future fire station, equipment for the sewer and solid waste funds, and site improvements at the new public works headquarter. The outstanding liability for the note is allocated as follows: $539,891 for governmental activities and $810,109 for business-type activities. Principal payments of $50,000 are made semi-annually on January 1 and July 1. The principal payments are amortized over 20 years. The City may prepay the note at any time with no additional charges. Interest accrues at a variable rate equal to the sum ofthe 30-day LIBORmultiplied by 60.938%, plus 0.813%. The rate at June 30, 2012 was 0.9935%. 57 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $937,600 Waterworks Revenue Bonds, Series 2010 due as follows: Year Ending Interest Principal Interest Admin Fee June 30, Rate Due Due Due Total 2013 1.4900% $ 42,800 $ 13,812 $ 4,635 $ 61,247 2014 1.4900 43,800 13,170 4,419 61,389 2015 1.4900 44,700 12,514 4,199 61,413 2016 1.4900 45,700 11,845 3,975 61,520 2017 1.4900 46,800 11,159 3,745 61,704 2018 1.4900 47,900 10,458 3,510 61,868 2019 1.4900 48,900 9,741 3,269 61,910 2020 1.4900 50,100 9,008 3,023 62,131 2021 1.4900 51,100 8,258 2,771 62,129 2022 1.4900 52,300 7,492 2,514 62,306 2023 1.4900 53,500 6,708 2,251 62,459 2024 1.4900 54,700 5,906 1,982 62,588 2025 1.4900 55,900 5,087 1,707 62,694 2026 1.4900 57,200 4,249 1,426 62,875 2027 1.4900 58,500 3,392 1,138 63,030 2028 1.4900 59,900 2,515 844 63,259 2029 1.4900 61,200 1,618 543 63,361 2030 1.4900 62,600 701 235 63,536 $. 93u.oo $.­. 137,633 $ .42Jj2 $ 1.12h419 These bonds are dated January 1, 2010. The proceeds of the bond issue were 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, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $1 ,0 1 0,000 Special Obligation Bonds, Series 201 OA due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Total 2013 2014 2015 2016 2017 2018 3.000% 3.000 3.000 2.625 3.000 3.375 $ 140,000 150,000 160,000 175,000 185,000 200,000 $ 30,394 26,194 21,694 16,894 12,300 6,750 $ 170,394 176,194 181,694 191,894 197,300 206,750 $ 12010!000 $ 114!226 $ 1,124)26 On March 1,2010, the City issued $1,275,000 of Special Obligation Bonds Series 201 OA 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 1. 59 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $13,955,000 Waterworks System Refunding Revenue Bonds Series 2012A due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2013 2.000% $ 655,000 $ 316,464 $ 971,464 2014 2.000 535,000 435,432 970,432 2015 2.000 545,000 424,732 969,732 2016 2.000 555,000 413,831 968,831 2017 3.000 570,000 402,731 972,731 2018 3.000 585,000 385,631 970,631 2019 3.000 605,000 368,081 973,081 2020 4.000 620,000 349,931 969,931 2021 3.000 645,000 325,131 970,131 2022 3.000 665,000 305,781 970,781 2023 3.000 685,000 285,831 970,831 2024 3.125 705,000 265,281 970,281 2025 3.250 725,000 243,250 968,250 2026 3.375 750,000 219,688 969,688 2027 3.500 775,000 194,375 969,375 2028 3.625 805,000 167,250 972,250 2029 3.625 835,000 138,069 973,069 2030 4.000 865,000 107,800 972,800 2031 4.000 895,000 73,200 968,200 2032 4.000 935,000 37,400 972,400 $13,955,000 $ 5 1459 2889 $19,4141882 On April 17,2012 the City issued $13,955,000 of Refunding Revenue Bonds. The proceeds were used to refund the outstanding Series 1998 Bonds. The Bonds were issued with interest varying from 2.0% to 4.0%. Principal and interest will be paid by the City from the revenues derived from the operation of the waterworks system. Principal payments are made annually on January 1. Interest payments are made semi-annually on January 1 and July 1. 60 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued $31 ,OOQ,OOO Sewerage S;::stem Revenue Bonds (State of Missouri -Direct Loan Program) Series 2012 due as follows: Year Ending June 30, Interest Rate Principal Due Interest Due Admin Total 2013 1.430% $ $ 236,427 $ $ 236,427 2014 1.430 443,300 443,300 2015 1.430 443,300 443,300 2016 1.430 1,256,000 438,838 306,880 2,001,718 2017 1.430 1,288,000 420,763 294,240 2,003,003 2018 1.430 1,319,000 402,237 281,285 2,002,522 2019 1.430 1,352,000 383,255 268,010 2,003,265 2020 1.430 1,385,000 363,806 254,410 2,003,216 2021 1.430 1,419,000 343,879 240,475 2,003,354 2022 1.430 1,455,000 323,459 226,195 2,004,654 2023 1.430 1,491,000 302,524 211,555 2,005,079 2024 1.430 1,527,000 281,074 196,555 2,004,629 2025 1.430 1,565,000 259,102 181,190 2,005,292 2026 1.430 1,604,000 236,586 165,445 2,006,031 2027 1.430 1,644,000 213,506 149,305 2,006,811 2028 1.430 1,684,000 189,854 132,765 2,006,619 2029 1.430 1,726,000 165,622 115,820 2,007,442 2030 1.430 1,769,000 140,791 98,455 2,008,246 2031 1.430 1,813,000 115,337 80,655 2,008,992 2032 1.430 1,857,000 89,253 62,415 2,008,668 2033 1.430 1,904,000 62,534 43,730 2,010,264 2034 1.430 1,950,000 35,142 24,575 2,009,717 2035 1.430 992,000 7,093 4,960 1,004,053 LliIOOOIOOO ~ 5~8972682 $ 3!338 1920 $ 40 1236 1602 Sewerage System Revenue Bonds through the State of Missouri -Direct Loan Programs were issued by the City on June 19, 2012. There is a 1 % administrative fee charged on this loan along with the 1.43% interest rate. Principal is disbursed on this loan as needed. At the end of June 30, 2012 only $199,000 in principal had been disbursed. The disbursement was used to pay issuance costs of the loan. The proceeds ofthe bond issue will be used to acquire, construct, extend and improve the existing sewerage system. Principal payments are made annually on July 1; while interest payments are made semi-annually on January 1 and July 1. 61 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE E -LONG-TERM OBLIGATIONS -Continued The annual requirements to amortize all debt outstanding as of June 30, 2012 including total interest payments of $22,205,804 are as follows: Special Year Ending Obligation June 30, Bonds 2013 $ 1,191,282 2014 1,003,530 2015 1,536,430 2016 319,380 2017 326,586 2018 337,636 2019 127,196 2020 128,484 2021 129,494 2022 130,244 2023 130,781 2024 130,969 2025 260,940 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Revenue Bonds $ 6,103,927 4,499,273 4,297,778 5,947,850 5,966,445 4,963,504 5,872,419 4,824,477 4,700,164 3,037,741 3,038,369 3,037,498 3,036,236 3,038,594 3,039,216 3,042,128 3,043,872 3,044,582 2,977,192 2,981,068 2,010,264 2,009,717 1,004,053 $~752,952 $ 85,516,367 Leasehold Revenue Promissory Bonds Note $2,486,532 $ 113,166 2,487,882 112,172 2,487,394 111,179 2,484,594 110,213 2,488,594 109,192 2,488,994 108,198 1,660,794 107,205 106,227 105,218 104,225 103,239 102,237 101,244 50,250 Total $ 9,894,907 8,102,857 8,432,781 8,862,037 8,890,817 7,898,332 7,767,614 5,059,188 4,934,876 3,272,210 3,272,389 3,270,704 3,398,420 3,088,844 3,039,216 3,042,128 3,043,872 3,044,582 2,977,192 2,981,068 2,010,264 2,009,717 1,004,053 $16,?~784 $ lJ3)~5 $109.298,068 The cash and investments available to service revenue bonds are $56,787 and $2,702,333 for the governmental and business-type activities, respectively. The cash and investments available to service the special obligation bonds are $753,850 and $11,365 in governmental activities and business-type activities, respectively. 62 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 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 $1,440,995 Total $1,440,995 Business-Type Activities: Golf Course $ 9,210 Sewer 738,356 Softball Complex 6,909 Solid Waste 44,091 Water 199,710 Total $ 998ctlli 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 $27,333,469. NOTE F -DEFICIT FUND BALANCES/RETAINED EARNINGS There were no fund's total liabilities that exceeded their total assets. 63 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE G -PENSION PLAN 1. Plan Description The City of Cape Girardeau participates in the Missouri Local Government Employees Retirement System (LAGERS), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for local government entities in Missouri. LAGERS is a defined benefit pension plan which provides retirement, disability, and death benefits to plan members and beneficiaries. LAGERS was created and governed by statute Section RSMo. 70.600 -70.755. As such, it is the system's responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401(a) and it is tax exempt. The Missouri Local 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 30 th statutorily required contribution rates are 8.1 % (General), 8.9% (Police) and 13.3% (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 (NPO) The subdivision's annual pension cost and net pension obligation for the current year were as follows: Annual required contribution $1,562,286 Interest on net pension obligation 27,354 Adjustment to annual required contribution (20,815) Annual pension cost 1,568,825 Actual contributions 1,342,004 Increase (decrease) in NPO 226,821 NPO beginning of year 377,291 NPO end of year $ _ 6~112 The annual required contribution (ARC) was determined as part ofthe February 28,2010 annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of February 28, 2012 included: (a) a rate ofretum on the investment of present and future assets of7.25% per year, compounded annually, (b) projected salary increases of3.5% 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, 64 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE G -PENSION PLAN -Continued attributable to seniority/merit, (d) pre-retirement mortality based on 75% ofthe RP-2000 Combined Healthy 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 smooth the effects of short-term volatility in the market value of investments over a five-year period. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The amortization period at February 28,2010 was 30 years for the General division, 30 years for the Police division and 30 years for the Fire division. Three-Y ear Trend Information Year Ended June 30 Annual Pension Cost (APC) Percentage ofAPC Contributed Net Pension Obligation 2010 2011 2012 1,033,703 1,533,704 1,568,825 100.0% 75.4% 85.5% 0 377,291 604,112 Note: The above assets and actuarial accrued liability do not include the assets and present value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The actuarial assumptions were changed in conjunction with the February 28,2011 annual actuarial valuations. For a complete description of the actuarial assumptions used in the annual valuations, please contact the LAGERS office in Jefferson City. 65 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE H -POSTRETIREMENT HEALTHCARE 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$2,365,807 and $881,028, 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 eligible 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 eligible former employees as previously described. Specific details of the Plan include the provision of certain medical and dental coverage. These benefits are provided through the City's self insured programs. The City is under no statutory or contractual obligation to provide these postretirement healthcare benefits. Because the Plan consists solely ofthe City's firm commitment to provide OPEB through the payment ofpremiums to its selfinsured programs 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 for its governmental and business-type funds. Effective April 1,2012 employees who retire early (prior to age 55 for police and fire and prior to age 60 for all other city employees) are not eligible for retiree healthcare coverage. For the year ended June 30, 2012, the City paid the full premium cost for eligible retired employees who were hired prior to January 1,2007. For eligible employees hired on/after January 1, 2007, the City paid a percentage of the full premium cost for retired employees with single coverage according to years of service at retirement. For employees with 10 to 14 years of service at retirement the City's subsidy was 50%. The subsidy for employees with 15 to 19 years of service was 60%; 20 to 24 years was 70%, and employees with more than 24 years of service at retirement received 100% subsidy. The retiree is responsible for the full cost of dependent coverage. The plan is financed on a pay­ as-you-go basis. 3. Annual OPEB Cost and Net OPEB Obligation The City's annual OPEB cost is calculated based on the annual required contribution (ARC) of the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period 000 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: 66 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE H -POSTRETIREMENT HEAL THCARE BENEFITS -Continued 2011 2012 Annual required contribution $ 1,253,595 $ 881,028 Interest on net OPEB obligation 75,609 100,214 Adjustment to annual required contribution (103,150) (136,717) Annual OPEB cost $ 1,226,054 $ 844,525 Contributions made (679,271) (705,699) Increase in net OPEB obligation $ 546,783 $ 138,826 Net OPEB obligation, July 1 1,680,198 2,226,981 Net OPEB obligation, June 30 Lb,226.981 $ 2.365,807 The City'S annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2012 were as follows: Percentage of Net OPEB Fiscal Year Annual AnnualOPEB Obligation ­ Ended OPEB Cost Cost Contributed End of Year 6/30112 $ 844,525 83.6% $ 2,365,807 6/30111 1,226,054 55.4% 2,226,981 6/3011 0 1,339,923 44.0% 1,680,198 4. Funding Status and Funding Progress As of July 1, 2011, the most recent actuarial valuation date, the Plan was not funded. The actuarial accrued liability for benefits equaled $9,242,557, resulting in an unfunded actuarial accrued liability (UAAL) of $9,242,557. The covered payroll (annual payroll of active employees covered by the Plan) equaled $14,275,595, and the ratio of the VAAL to the covered payroll equaled 64.7%. Actuarial valuations of an ongoing plan involve estimates ofthe value ofreported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress 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, information relative to Plan asset required disclosures is not applicable. 67 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2012 NOTE H -POSTRETIREMENT HEALTH CARE 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 of return 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 $1,669,842, excluding $4,325 of interfund interest, was incurred by governmental funds during the year ended June 30,2012. Interest and handling charges, totaling $976,486 excluding $24,317 of interfund interest, was incurred by proprietary funds during the year ended June 30, 2012. No interest cost was capitalized as part of the cost of assets constructed during the period. NOTE J -INTERFUND ACTIVITY A. The following is a summary of interfund balances as of June 30, 2012: Advance to/from other funds: Advances from Advances to General Fund Solid Waste Fund Golf Course Fund Softball Complex Fund $ 844,919 $ 556,818 163,080 125,021 L844,919 L 811.919 The interfund balances are a result ofadvances 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. 68 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2012 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 30,2012: General Fund Airport Fund Park and Recreation Fund Vision 2000 Housing Development Fund Motor Fuel Tax Fund Capital Improvement Sales Tax­ Flood Control Transfer From $ 4,156,971 11 1,320,000 43,510 $ Transfer To 4,791,917 527,563 944,843 37,631 Water System Improvements Sewer System Improvements Transportation Sales Tax Trust II Fire Sales Tax Fund Public Safety Trust Fund Transportation Sales Tax Trust III Park/Storm Water Sales Tax Park/Storm Water Sales Tax-Capital Transportation Sales Tax Trust IV Casino Revenue Fund Park Improvements Fund Community Development Block Grant Project Fund Water System Improvement Projects Fund Storm Water Projects from Storm Water Tax Park Improvement Projects from Park Sales Tax Sewer Fund Water Fund Solid Waste Fund Golf Course Fund Softball Complex Fund Information Technology Fund Fleet Management Fund Equipment Replacement Fund 1,624,914 32,663 2,273,970 1,267,719 1,050,759 489,607 260,000 80 145,145 382,724 2,571,402 13,855,446 15,074 5,500 15,248,652 1,113,700 2,273,970 382,663 305,397 135,000 260,000 21,327 1,109 284,882 424,374 2,072,059 10,377 5,500 104,892 483,101 56,000 10,538 $ 29,4.25..422 69 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 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 30,2012 was as follows: Softball Sewer Water Solid Waste Golf Course Complex Total Fund Fund Fund Fund Fund Enterprise Operating revenues $ 7,665,103 $ 6,962,909 $3,338,512 $ 499,839 $ 263,399 $18,729,762 Depreciation 2,149,022 \,523,960 436,354 119,289 144,898 4,373,523 Operating Income (Loss) 1,612,640 376,682 (196,746) ( 194,596) (613,166) 984,814 Operating transfers in 2,072,059 10,378 5,500 104,892 483,101 2,675,930 Net Income (Loss) 776,809 (11,038,235) (172,468) (70,570) (103,536) (10,608,000) Current Capital Contributions 480,730 2,663,402 13,777 12,089 24,503 3,194,501 Property, Plant and Equipment Additions 2,939,951 2,641,290 244,783 23,422 48,044 5,897,490 Deletions 83,249 65,908 214,281 34,015 11,500 408,953 Net Working Capital (40,945) 4,066,217 1,083,852 (1,774) (6,542) 5,100,808 Total Assets 55,745,767 51,315,600 4,003,156 1,640,127 2,484,080 115,188,730 Current Liabilities 2,949,300 3,335,084 406,250 62,304 108,180 6,861,118 Long-Term Liabilities 16,512,882 13,365,752 1,598,299 31,730 9,682 31,518,345 Amounts payable to other funds 556,818 163,080 125,021 844,919 Total Liabilities 19,462,182 16,700,836 2,561,367 257,114 242,883 39,224,382 Total Net Assets $36,283,585 $ 34,614,764 $1,441,789 $ 1,383,013 $2,241,197 $75,964,348 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 cannot 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$2,100 that are legally restricted to provide for the perpetual care and maintenance of a mausoleum in the City's cemetery. Only interest earnings on this amount can be used for mausoleum maintenance. Prepaid expenses of $156,380 and long-term advance receivables of $844,919 are also reflected as non-spendable fund balances. 70 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE L -GOVERNMENTAL FUND BALANCES REPORTING -continued Restricted Fund Balance -Includes amounts that can be spent only for specific purposes because of restrictions by external parties, constitutional provisions or enabling legislation. These financial statements include the following restricted fund balances. Fund balances totaling $4,580,005 are restricted by the City Charter to use during officially declared emergencies. Special revenue fund balances totaling $14,528,702 are restricted by their enabling legislation. $1,434,206 in capital project fund balances are restricted as the result of special revenue transfers and unspent bond proceeds. The remaining $216,199 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 of the City's highest level of decision-making authority (the City Council). Those amounts cannot be used for any other purpose unless the government 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 government's intent to be used for specific purposes, but are neither restricted nor committed. For all governmental 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 Fund Balance -For the general fund, amounts not classified as nonspendable, restricted, committed or assigned are included here. For all other governmental funds, it is the amount expended in excess of resources that are nonspendable, 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 of fund balance that is identified. 71 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE L -FUND BALANCE REPORTING -Continued Fund balances Nonspendable: Prepaid expenses Long-term advance Mausoleum Restricted for: Mausoleum Emergencies Local access channel Convention and tourism River campus bonds Community development Public safety Street projects Water system projects Sewer system projects Parks and recreation Park and storm water projects Other capital projects Assigned to: Airport Parks and recreation Operations and maintenance Encumbrances Debt service Other projects Public safety Parks and recreation Other capital projects Community development Street projects Unassigned: General Fund $ 124,418 844,919 2,100 90,169 3,930,688 45 118,796 3,114,973 ~ 8,226,108 Major S[!ecial Revenue Funds Parks and Transportation Airport Recreation Sales Tax Fund Fund Tru~t FunlllIl $ 15,859 $ 2,763 $ 2,798,983 146,912 366,395 17,455 --­~$ 38MJl $­2Z2828J Major Park Projects from Parks Sales Tal $ 3,062,238 tJ,062,238 $ Other Funds 13,340 649,317 209,990 125,985 51,829 646,500 3,707,922 118,798 2,879,012 365,716 1,735,631 386,289 19,411 252,939 889,523 381,998 193,467 8,848 70,212 !l!!!! $ 156,380 844,919 2,100 90,169 4,580,005 45 209,990 125,985 51,829 646,500 6,770,160 2,917,781 2,879,012 365,716 1,735,631 386,289 146,912 366,395 17,455 118,796 19,411 252,939 889,523 381,998 193,467 8,848 70,212 3,114,973 $ 21. 3~3 HQ 72 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE M -RESERVED RETAINED EARNINGS AND RESTRICTED ASSET ACCOUNTS At June 30, 2012, the City has restricted assets in its Proprietary Funds as follows: Depreciation and Replacement Bond Construction Revenue Bond Sinking and Reserve Fund Total Sewer Fund Water Fund Solid Waste Fund $ 127,000 150,000 t-277.000 $ 4,616 3,194 $ 1,810 $1,399,439 1,327,969 863 $2,128,211 $ 1,526,439 1,482,585 4,057 $ 3,Q13,Q81 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 $39,000 as of June 30, 2012, which is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as ofJune 30, 2012. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City has used the option of a Contract of Obligation as the financial assurance instrument for the landfill. The City issued bonds in October 1994 from which the proceeds were used to pay the closure costs. 73 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30,2012 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 of the Missouri Public Entity Risk Management Fund, a not-for-profit public entity insurance pool established by the state legislature. Through this pool, the City receives coverage for general liability, law enforcement liability, errors and omissions, and employment practice liability. Risks for these coverages are spread across members ofthe fund. Currently the fund is comprised of862 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 thirteen 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 AM. Best. Airport liability is carried by Catlin Insurance Company. It is rated "A" by AM. Best. Property insurance is carried by Chubb Group ofInsurance Companies. It is rated "A++" by AM. Best. Equipment coverage is carried by Travelers Property Casualty Company of America. It is rated "A+" by AM. Best. The City has established self-insurance plans for employees' health insurance and workers' compensation. Both of these are accounted for using internal service funds. Under each plan, the City is substantially self­ insured and uses an administrator to handle claims management. The City provided health coverage to its employees through a minimum premium plan administered by 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 $2,800,000 and $3,000,000 annually beginning January 1, 2011 and 2012, 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 93.5% and 93.5% of the aggregate stop loss amount for fiscal years ending June 30, 2011 and 2012 respectively. 74 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 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. All 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 & H and $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 LIABILITIES RECONCILIATION Health Workers' Insurance Compensation Balance June 30, 2007 Provision for Incurred Claims Payment of Claims $ 645,750 1,812,199 (2,346,449) $ 670,000 6,009 (406,009) $ 1,315,750 1,818,208 (2,752,458) Balance June 30, 2008 Provision for Incurred Claims Payment of Claims $ 111,500 1,860,053 (1,773,053) $ 270,000 523,905 (363,905) $ 381,500 2,383,958 (2.136,958) Balance June 30, 2009 Provision for Incurred Claims Payment of Claims $ 198,500 1,843,651 (1,911,151) $ 430,000 583,662 (493,662) $ 628,500 2,427,313 (2,404,813) Balance June 30, 2010 Provision for Incurred Claims Payment of Claims $ 131,000 2,238,055 (2,171,055) $ 520,000 106,108 (526,108) $ 651,000 2,344,163 (2,697 ,163) Balance June 30, 2011 Provision for Incurred Claims Payment of Claims Balance June 30, 2012 $ $ 198,000 2,847,800 (2~820~300) 225,500 $ 100,000 436,715 (251~715) :& 285~000 $ 298,000 3,284,515 (3~072~0 15) 1 5IQ,500 75 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE P -CONCENTRATION OF CREDIT RISKfBAD DEBT ALLOWANCE The City has uncollateralized 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 30,2012, utility receivables totaled $2,928,035. On the financial statements, the utility receivables are shown net ofthe allowance for doubtful accounts of$170,405. This results in net utility receivable of $2,757,630. During the year ended June 30, 2012, the allowance was increased by $121,077 or approximately .69% of the current year's utility charges and accounts totaling $44,807 were written off. NOTE Q -COMMITMENTS AND CONTINGENCIES 1. Litigation Various claims and lawsuits are pending against the City. In the opinion ofCity 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 ofthe Federal and State agencies for expenditures disallowed under the tenus 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, 2012, the City had construction commitments outstanding of$4,968,0 12. The construction commitments represent incomplete portions of contracts entered into to construct the following: various street projects, trail construction, 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, 2012, the City had encumbrances outstanding of $8,240,00 1. 76 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE R -PRIOR PERIOD ADJUSTMENTS The net assets of the governmental funds have been decreased by $60,715 as of June 30, 2012 while the net assets for the business type activities increased by $22,959. This is mainly due to a market value adjustment of investment balances among the funds. The Parks and Recreation Fund also had a material prior period adjustment in the amount of $33,064 which was due to a correction in a prior period salary accrual. The sewer and water funds were materially adjusted by construction in progress projects that were not constructed. In addition to these amounts, there were immaterial adjustments made to the funds which are included in the above totals. These material adjustments are detailed in the table below. Governmental Activities Market Value Adjustment Salary Accrual Construction in Progress General Airport Park Capital Improvement Sales Tax ­ Water System Improvement Transportation Sales Tax Trust Fund All Other Governmental Funds Internal Service Funds IV $ 19,947 (543) 6,034 (2,437) 11,482 (69,202) 8,859 $ -0­ -0­ 33,064 -0­ -0­ -0­ $ -0­ -0­ -0­ -0­ -0­ -0­ -0­ Total Governmental Activities $ -0­ Business Type Activities Sewer Water Solid Waste Golf Softball $ 12,788 25,624 1,177 112 750 $ -0­ -0­ -0­ -0­ $ 9,890 (23,158) -0­ -0­ -0­ Total Business Type Activities $ (13,2681 NOTE S -CONTINGENCY 1. In June 2004, the City of Cape Girardeau and Cape Girardeau County entered into a development agreement with a local business. Under the agreement, the local business agreed to pay for certain public improvements incurred in conjunction with the construction of a new retail facility and the City and County agreed to reimburse the local business for the cost of these improvements up to a maximum of $4,000,000 over an estimated 15 years. The local business has completed these improvements with a total cost of$2,668,646. The City is required by the development agreement to reimburse the local business for $2,134,917 of these costs through scheduled quarterly payments 77 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE S -CONTINGENCY -Continued over the next fifteen years from available revenues. Available revenues are defined in the development agreement as 75% of the City's quarterly net revenues from specific sales taxes generated by the business operations of the new retail facility which exceed $64,000. The rates of the specified sales taxes currently equal 2%. Sales taxes with rates currently equal to 1 % will expire during the term of this agreement. The City will be required to substitute revenues for sales taxes with equivalent rates, if available, when the specific sales taxes expire. Required quarterly payments increase annually per the repayment schedule included in the development agreement. To the extent that the available revenues for any quarter are less than the required quarterly payment due, the unpaid amount will be added to the next scheduled quarterly amount due 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 of the agreement will not be required to be paid. The term of the developer agreement is 20 years from the execution of the agreement. During the fiscal year ended June 30, 2012, 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% of the net sales tax revenue generated by a .50% County sales tax. All City sales taxes have expiration date that could occur before the total costs of the improvements are reimbursed to the developer. The County sales tax has no expiration date. No provision is made to replace revenues from the City sales taxes that expire if they are not extended. The development agreement remains in effect until the total cost of the public improvements is reimbursed to the developer. 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, 2012, the City incurred payments of $132,306 under the development agreement. This amount is included in the Development Services expenses on the statement of activities. 78 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE S -CONTINGENCY -Continued 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. This project involves the conversion of the former 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 1 % sales tax. Improvements to the redevelopment project will receive 100% real estate tax abatement for the first 10 years and 50% real estate tax abatement for the next 15 years. The current Sears facility will receive 50% real estate tax abatement for 25 years. Based on 2006 assessed values the abatement of City taxes on the unimproved Sears facility would be $627.53. Beginning in year six of the 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 30,2012, the City incurred payments of$35,522 under the development agreement. This amount is included in the Development Services expenses on the Statement of Activities. 4. In May 2011, the City of Cape Girardeau entered into a development agreement with a local real . estate developer. Under this agreement, the local developer agreed to pay for certain public improvements incurred in conjunction with the development of a Menards Home Improvement Store site and other adjacent retail development sites and the City agreed to reimburse the local developer for the cost of these improvements from available net sales tax revenue generated from the Menards Home Improvement operations and operations of other similar retail stores in the City that exceeded a baseline amount established in the development agreement. 79 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE S CONTINGENCY -Continuedw The local developer has completed improvements associated with the Menards Home Improvement site at a cost of $344,450. Improvements to the adjacent retail sites have not been completed. Projected costs of all public improvements are not expected to exceed $3,000,000. The City is required by the development agreement to reimburse the developer for these costs from available revenues. 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 that exceed a baseline amount. All City sales taxes have expiration dates that could occur before the total costs of the improvements are reimbursed to the developer. 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 15 years from the beginning of the Menards Home Improvement operations. The City is obligated only to make quarterly payments as may lawfully be made from funds budgeted and appropriated for that purpose by the City. During the fiscal year ended June 30, 2012, the City incurred no payments under the development agreement. NOTE T -SUBSEQUENT EVENTS In October 2012, the City of Cape Girardeau and Cape Girardeau County amended a development agreement with a local real estate developer. Under the amendment, the local developer agreed to pay for additional 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 an Academy Sports store. Public improvements are not to exceed $3,000,000. The City and County are required by the development agreement to reimburse the developer for these costs with quarterly payments from available revenues after the commitment from the original development agreement has been reimbursed. Available revenue is defined by the agreement as the net sales tax revenue equivalent to amounts that would be generated by two .25% City capital improvement sales taxes, 50% ofa .50% City transportation sales tax and 50% of a .50% County sales tax from the Academy Sports store on inflation adjusted annual sales over $2,500,000. 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. The amended development agreement remains in effect until the earlier of the reimbursement of the public improvements costs or 15 years after the date that the original commitment of the original development agreement is reimbursed. 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. 80 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2012 NOTE T -SUBSEQUENT EVENTS -Continued The City entered into an agreement with a general contractor on August 3,2012, in the amount of $55,674,000 for the construction of a new Wastewater Treatment Plant. Previously the City had entered into other contracts associated with this project totaling $5,316,070 for engineering, consulting, design and review services related to construction of the new plant. A total of $6,223,297 has been paid out on all ofthese contracts. The cost of this project is to be funded by direct loans from the State of Missouri Revolving Loan Fund. The City entered into a loan agreement with the State for $31,000,000 on June 19, 2012. The State has committed to an additional $39,000,000 direct loan from the revolving loan fund. To date a total of$7,585,092 has been requested in reimbursements from the loans to cover previously paid and current unpaid invoices on hand. On December 12, 2012, the City announced its intention to purchase 247.43 acres along interstate 1­ 55 around the new LaSalle interchange for $6,000,000 under terms agreed to with the Southeast Missouri University Foundation. Per the terms, a $480,000 down payment will be made by the Greater Cape Girardeau Benevolent Association on behalf of the City and the City will make 12 annual payments of$460,000. The City intends to use a portion of the revenue it receives from the Isle of Capri Casino to make its annual payments. The contract for this purchase is expected to be approved in January 2013. The land will be used for future business development and is best suited for distribution centers, light manufacturing, technology-related businesses and some retail development. The City estimates that it will cost $3.2 million to extend water and sewer services to this property. The costs are estimated to be funded with its current capital improvement sales taxes and revenues from the sewer fund. 81 REQUIRED SUPPLEMENTAL INFORMATION city of Cape Girardeau General Statement of Revenues, Expenditures, and Changes In Fund Balances « Budget and Actual For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget ­ Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 14,884,065.00 $ 14,884,065.00 $ 15,711,509.61 $ 827,444.61 Licenses & pennits 1,394,300.00 1,394,300.00 1,567,135.53 172,835.53 Intergovernmental 482,182.00 482,182.00 1,026,870.66 544,688.66 Charges for services 256,867.00 256,867.00 257,255.07 388.07 Intemal charges 1,141,572.00 1,141,572.00 1,171,576.63 30,004.63 Fines and forfeits 825,000.00 825,000.00 963,252.22 138,252.22 Miscellaneous 305,550.00 305,550.00 345,535.19 39,985.19 Investment revenue 93,720.00 93,720.00 111,637.92 17,917.92 Total revenues 19,383,256.00 19,383,256.00 21,154,772.83 1,771,516.83 EXPENDITURES Current: Administrative 1,665,861.00 1,744,111.00 1,681,841.15 62,269.85 Contingency 40,000..00 48,409.74 29,410.25 18,999A9 Development Services 2,143,384.00 2,507,864.00 2,334,060.96 173,823.04 Parks and Recreation 1,830,462.00 1,869,362.00 1,642,170AO 27,191.60 Public Safety 11,802,848.00 12,066,243.08 11,974,407.25 91,835.83 00 Public Works 2,341,555.00 2,339,432.29 2,274,752.37 64,679.92 IV Total current 19,823,910.00 20,575,442.11 20,136,642.38 436,799.73 Debt service: Administrative charges 287.38 (287.38) Interest 64,977.00 64,977.00 62,834.15 2,142.85 Principal 96,000.00 96,000.00 96,000.00 Total debt service 160,977.00 160,977.00 159,121.53 1,655.47 Capital outlay: Administrative 27,700.00 41,450.00 36,136.29 5,313.71 Development Services 17,000.00 17,000.00 Public Safety 18,990.00 143,944.92 119,851.67 24,093.25 Public Works 107,463.00 109,605.71 96,225.42 13,380.29 Total capital outlay 154,173.00 312,000.63 252,213.38 59,787.25 Total expenditures 20,139,060.00 21,048,419.74 20,547,977.29 500,442.45 Excess (deficiency) of revenues over (under) expenditures (755,804.00) (1,665,163.74) 606,795.54 2,271,959.28 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Compensation for damages 300.00 300.00 Transfers in 4,561,794.00 4,756,738.00 4,791,917.07 35,179.07 Special assessments 17,000.00 17,000.00 23,388.95 6,388.95 Advance repayments 71,520.00 71,520.00 71,523.28 3.28 Asset disposition 557,328.27 557,328.27 Special programs Transfers out (3,892,281.00) (3,590.26) (4,300,281.00) (22,402.57) {4,156,97O.931 (18,812.31) 143,310.07 Total other financing sources and uses and special items 758,033.00 541,386.74 1,265,084.07 723,697.33 Net change in fund balances 2,229.00 (1,123,777.00) 1,871,879.61 2,995,656.61 Fund balances --beginning 5,442,889.19 5,442,889.19 5,442,889.19 Prior period adjustment (1,507.61) (1,507.61) Fund balances --ending $ 5,445,118.19 $ 4,319,112.19 $ 7,313,261.19 $ 2,994,149.00 See Independent Auditors' Report. City of Cape Girardeau Airport Statement of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget· Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental Charges for services Miscellaneous Investment revenue Asset disposition Total revenues EXPENDITURES Current: Administrative Total current 00 Capital outlay: w Administrative Total capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Total other financing sources and uses and special items Net change in fund balances Fund balances beginning Prior period adjustment Fund balances ending $ 237,000.00 313,085.00 194,222.00 540.00 744,847.00 $ 237,000.00 313,085.00 194,222.00 540.00 744.847.00 $ 216,806.55 316,925.84 229,263.79 1,041.03 6,287.79 770,325.00 $ (20,193.45) 3,840.84 35,041.79 501.03 6,287.79 25,478.00 1,228,808.00 1,228,808.00 1,363,908.00 1,363,908.00 1,276,274.80 1,276,274.80 87,633.20 87,633.20 1,228,808.00 1,363,908.00 5,525.00 5,525.00 1,281,799.80 (5,525.00) (5,525.00) 82,108.20 (483,961.00) (619,061.00) (511,474.80) 107,586.20 $ 483,961.00 483,961.00 138,565.76 138,565.76 $ 558,961.00 558,961.00 (60,100.00) 138,565.76 78,465.76 $ 527,563.46 527,563.46 16,088.66 138,565.76 (744.45) 153,909.97 $ (31,397.54) (31,397.54) 76,188.66 (744.45) 75,444.21 See Independent Auditors' Report. city of Cape Girardeau Park and Recreation Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual REVENUES Charges for services Miscellaneous Investment revenue Total revenues EXPENDITURES Current: Parks and Recreation Total current Capital outlay: Parks and Recreation 00 Total capital outlay ..p.. Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Compensation for damages Transfers in Asset disposition Transfers out Total other financing sources and uses and special items Net change in fund balances Fund balances beginning Prior period adjustment Fund balances -ending For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget· Positive Original Final Actual Amounts (Negative) $ 1,287,645.00 $ 1,287,645.00 $ 1,279,691.68 $ (7,953.32) 11,880.00 11,880.00 12,208.48 328.48 4,500.00 4,500.00 7,728.53 3,228.53 1,304,025.00 1,304,025.00 1,299,628.69 (4,396.31) 2,245,279.00 2,313,379.00 2,250,343.74 63,035.26 2,245,279.00 2,313,379.00 2,250,343.74 63,035.26 2,245,279.00 2,313,379.00 2,250,343.74 63,035.26 (941,254.00) (1,009,354.00) (950,715.05) 58,638.95 1,200.00 1,200.00 976,254.00 1,066,254.00 944,843.34 (121,410.66) 4,852.61 4,852.61 976,254.00 1,066,254.00 950,895.95 (115,358.05) 35,000.00 56,900.00 180.90 (56,719.10) 411,930.94 411,930.94 411,930.94 (33,063.55) (33,063.55) $ 446,930.94 $ 468,830.94 $ 379,048.29 $ (89,782.65) City of Cape Girardeau Transportation Sales Tax Trust Fund III Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Budgeted Amounts Original Final Actual Amounts REVENUES Investment revenue $ 45,000.00 $ 45,000.00 $ 84,398.26 Total revenues 45,000.00 45,000.00 84,398.26 EXPENDITURES Capital outlay: Capital Improvement Projects 2,174,631.00 2,174,631.00 462,112.79 Total capital outlay 2,174,631.00 2,174,631.00 462,112.79 Total expenditures 2,174,631.00 2,174,631.00 462,112.79 00 Excess (deficiency) of revenuesUl over (under) expenditures (2,129,631.00) (2,129,631.00) (377,714.53) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 382,663.00 382,663.00 382,663.00 Total other financing sources and uses and special items 382,663.00 382,663.00 382,663.00 Net change in fund balances (1,746,968.00) (1,746,968.00) 4,948.47 Fund balances -beginning 3,024,821.99 3,024,821.99 3,024,~21.99 Fund balances ending $ 1,277,853.99 $ 1,277,853.99 $ 3,029,770.46 Variance with Final Budget ­ Positive (Negative) 39,398.26 39,398.26 1,712,518.21 1,712,518.21 __1,712,518.21 1,751,916.47 1,751,916.47 $ 1,751,916.47 See Independent Auditors' Report. City of Cape Girardeau. Missouri NOTE,S TO BUDGETARY COMPARISON SCHEDLLES June 30, 2012 BUDGETS AND BUDGETARY ACCOUNTING The City adopts annual operating budgets for all funds except Storm Water Projects from Storm Water Sales Tax Fund, Park Improvement Projects fi'om Park I Storm 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 flnancial statements. 1. The City Manager submits to the City Council a proposed operating budget for the flscal year ending the following June 30th at the flrst meeting of June each year. The operating budget includes proposed expenditures and the means of flnancing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to July 1, the budget is legally enacted through passage of an ordinance. 4. The City Manager is authorized to transfer budgeted amounts between programs within any department; however, any revisions that alter the total appropriations of any department must be approved by the City CounciL Departments may not legally exceed their appropriations without approval from the City CounciL Appropriations expire at the end of the year; however, outstanding encumbrances at the end of the year are honored by the City. 5. Formal budgetary integration is employed as a management control device during the year for all funds. 6. Budgets for all funds are adopted on a budgetary basis. 7. If, during the fiscal year, the City Manager certifies there are additional revenues to appropriate, unencumbered appropriation balances within a department, or there is an emergency situation, the City Council may amend the initial budget by ordinance. The initial budget was adopted by the City Council on June 20. 2011 and amended on March 5,2012, May 21, 2012, and July 2, 2012. The initial budget and final amended budget are both reflected in the financial statements. For the year ended June 30, 2012, the fund expenditures for Vision 2000, Motor Fuel Tax, Riverfront Region Economic Development Community Development Block Grant and Sewer exceeded their approved budgets by $1 L $26,832, $12,051, $149, and $47,602. respectively. 86 City of Cape Girardeau. Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30. 2012 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 or 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 (Deficiency) of Revenues and Other Financing Sources Over (Under) Exp¢nditurcs and QtiwrJ'in<!ncing Uses Cap Impr Sales Transportation Parks and Tax-Water System Sales Tax Trust Non-major General Airport Recremion Il11provJ;m_ellt~ Fund IV Funds GAAP Basis $1,756,981 $ 18,375 $ (1,193) $ 1,439,945 $ 1.501,750 $ (2,967,372) Increase due to: Year-end encumbrances Admini,tmtiv.: services 8,839 IS,Ofn Development services 24,916 28,749 Parks and recreation 1.263 3,296 4,885 Publte Safety 98,857 25,454 Public Works 27,688 Capitalnutlay 9,666 97,750 3, 144,529 Contingency 4,948 Funds not budgeted annually 2,854,388 Advance from other fmds 71523 Adjust investments to market 5.213 175 2,969 1.476 47,927 Encumbrance revenue .--~ ._ ......----._-_1546,953----~ _~,ill 15,182 _ 6.265. ~_._I.U42 97,750 7,652,88~ Decrease d lie to: Year-end encumbrances Administrative services 4382 8M7 Development services 19,319 23,654 Parks and recre,ltion 2.4J 5 4,891 23,906 Public salety 81.671 39,631 Publ ie works 10,259 Capital outlay ],785,068 2,141,886 Contingency 750 I,ncumbrance revenue 12,436 8,811 283,342 Adjust invest to market ,__ ...JJQ2 _. 8,527 ~. ....JJLD.l .....__L'ZAfJll 4,wn _.1790,,277 2,520,946 Iludget Basis $1,8/L&llQ L~_I_~,i)~9 $. LSI $ ~ 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, 87 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30,2012 BUDGETS AND BlJDGETARY 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 rel'tlllding amortizatinn Issuance cost amortization Adjust investments to market Amounts deferred to be used for t'tlture debt service on capital appreciation bonds Construction fund earnings Interest subsidy received Net OPEB obligation Asset dispositions Decrease due to: Year-end encumbrances Operating expenses Capital outlays Landfill closure and maintenance costs Interest paid more than accrual Bond principal paid Amortized Bond premium/discount Capital outlays Deferred revenueS Adjustment to liability for future landfill postclosure maintenance costs Net OPEB Obligation Contributed capital Budget Basis Net Income (Loss) Water Solid Was~ $ 776.809 $( 11.038.235) $ (172.468) $ 1,031.534 826.492 2,149,022 14.054 199.000 270'(133 17,409 6.773 174.935 10.236 1.523,960 6.787 13.999.459 31535 11,253 17.711 16.832 436.354 5.552 5.930 345,253 399.746 4.539 Golf SoHhall Course Complex (70.570) $ (103.536) 249 7.645 119.289 144.898 308 586 3.731 654 15.795.013 _1,53,783 279.011 7.373 103.531 1,502.566 1,213 160.541 4.879 282,638 12.867 17.147 2.251.500 965.000 202.508 18.427 3.090 2,343.966 368.756 293.543 222.458 267.145 83.309 1.621 36.201 3.963 2.663.402 ---....-­ 3.540 8.237 9.224 28.050 17,467 12J)89 _,£4,503 7.298.850 ~.l32 1) $ 88 ----- City of Cape Girardeau, Missouri NOTES TO BlIDGETARY COMPARISON SCI~IEDULES June 30, 2012 BllD(;ETS AND BUDGETARY ACCOlfNTING -Continued Net Income (Loill Datu Fleet Employee Ris~ Lquipment Processing Managemenj Fril}gj; Management R,plaeell1Cnl $ 64,901 $ 132,918 $ 76.584 $ 62.274GAAP Basis $ 65,361 Increase due to: Prior year encumbrances Operating expenses 4,157 Capital Outlays 58.651 Depreciation 99.096 20,817 291.035 Deferred revenues 15,074 Issuance cost amortization 546 Difference between proceeds from sale of fixed assets and gain or loss 21.275 Net OPEB Obligation 1,636 Adjust investments to market __6.156 159,741 _40.115 6,156 316,220 Decrease due to: Year-end encumbrances Operating expenses 6,861 Capital outlays 11,084 Interest paid more than accrued 117 Amortized Bond premium/discount 443 Net OPEB Obligation 5,588 Asset Dispositions 21,000 Principal paid 40,000 Capital outlays -_ 260,74~ _1_97.039 _ ...._-- -~- ­ Budget Basis 56~J<tl 89 CITY OF CAPE GIRARDEAU, MISSOURI Schedule of Funding Progress June 30,2012 (b-a) [(b-a)/c)l o \Q (a) Entry Age Unfunded (c) UAL as a Actuarial Actuarial Actuarial Accrued (alb) Annual Percentage of Valuation Value Accrued Liability Funded CoYered Covered Date Of Assets Liability (UAL) Ratio Payroll Payroll 2/28/20 I ° $ 28,033,747 $ 31,677,279 $ 3,643,532 88% $ 14,192,849 26~/o 2/28/2011 28,180,987 32,648,850 4,467,863 86% 13,842,403 3 2/29/2012 28,410,535 32,460,611 4,050,076 88% 14,065,599 29% See Independent Auditors' Report. SUPPLEMENTAL INFORMATION City of Cape Girardeau Vision 2000 Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 3D, 2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget- Positive (Negative) REVENUES Investment revenue Total revenues $ $ 0.22 0.22 $ 0.22 0.22 EXPENDITURES . Total expenditures Excess (deficiency) of revenues over (under) expenditures 0.22 0.22 \0 ,...... OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out Total other financing sources and uses and special items Net change in fund balances (11.02) (11.02) (10.80) (11.02) (11.02) (10.80) Fund balances ­beginning FUnd balances -ending 10.80 $ 10.80 10.80 $ 10.80 10.80 $ 0.00 $ (10.80) See Independent Auditors' Report. City of Cape Girardeau Convention and Tourism Statement of Revenues, Expenditures, and Changes In Fund Balances -Budget and Actual REVENUES Taxes Investment revenue Total revenues 1..0 tv EXPENDITURES Current: Administrative Total current Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances Fund balances beginning ending For the Year Ended June 3D, 2012 Budgeted Amounts Original Final $ 1.726.264.00 9,000.00 1,735,264.00 $ 1.726,264.00 9.000.00 1,735.264.00 1,777,763.00 1.777.763.00 1.777.763.00 2,039,763.00 2.039.763.00 2,039,763.00 (42,499.00) (304,499.00) (42,499.00) (304,499.00) $ 558,352.82 515.853.82 $ 558,352.82 253,853.82 Actual Amounts $ 1,886,774.68 6,815.31 1.893,589.99 2,010,364.04 2.010.364.04 2,010.364.04 (116.774.05) (116,774.05) 558,352.82 $ 441.578.77 Variance with Final Budget ­ Positive (Negative) $ 160.510.68 (2,184.69) 29,398.96 29,398.96 187,724.95 187,724.95 $ 187,724.95 158.325.99 29.398.96 City of Cape Girardeau Downtown Business District Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget ­ Positive OrlQinal Final Actual Amounts (Negative! REVENUES Taxes Investment revenue $ 24,700.00 1,125.00 $ 24,700.00 1,125.00 $ 24,856.41 803.72 $ 156.41 (321.28) Total revenues 25,825.00 25,825.00 25,660.13 (164.87) EXPENDITURES Current: Development Services 15,825.00 15,825.00 11,644.77 4,180.23 \0 VJ Debt Service: Interest Principal Total current Total debt service 15,825.00 5,301.00 4,699.00 10,000.00 15,825.00 5,301.00 4,699.00 10,000.00 11,644.77 4,873.63 5,126.37 10,000.00 4,180.23 427.37 (427.37) Total expenditures Excess (defiCiency) of revenues over (under) expenditures 25,825.00 25,825.00 21,644.77 4,015.36 4,180.23 4,015.36 Net change in fund balances 4,015.36 4.015.36 Fund balances Fund balances ­ beginning ending $ 43,062.79 43,062.79 $ 43,062.79 43,062.79 $ 43,062.79 47,078.15 $ 4,015.36 REVENUES Taxes Licenses & permits Intergovernmental Investment revenue Total revenues EXPENDITURES Current: Public Safety Total current Total expenditures 1.0 -+:0­Excess (defiCiency) of revenues over (under) expenditures Net change in fund balances Fund balances .-beginning Fund balances -ending City of Cape Girardeau Health Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30,2012 Variance with Budgeted Amounts Final Budget· Positive Original Final Actual Amounts (Negative) $ 313,105.00 $ 313,105.00 $ 320,179.55 $ 7,074.55 4,000.00 4,000.00 3,109.00 (891.00) 7,575.00 7,575.00 8,727.10 1,152.10 9,000.00 9,000.00 10,144.22 1,14~.22 333,680.00 333,680.00 342,159.87 8,479.87 333,680.00 341,630.00 325,245.51 16,384.49 333,680.00 341,630.00 325,245.51 16,384.49 333,680.00 341,630.00 325.245.51 16,384.49 (7,950.00) 16.914.36 24,864.36 (7,950.00) 16,914.36 24,864.36 471,461.29 471,461.29 471,461.29 $ 471,461.29 $ 463,511.29 $ 488,375.65 $ 24,864.36 See Independent Auditors' Report. City of Cape Girardeau Motor Fuel Tax Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget. Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 1,356,000.00 $ 1,356,000.00 $ 1,378,902.22 $ 22,902.22 Investment revenue 3,514.00 3,514.00 8,135.70 4,621.70 Total revenues 1,359,514.00 1,359,514.00 1,387,037.92 27,523.92 EXPENDITURES Capital outlay: Public Works 3,500.00 30,331.94 (26,831.94) Total capital outlay 3,500.00 30,331.94 (26,831.94) Total expenditures 3,500.00 30,331.94 (26,831.94) Excess (deficiency) of revenues \0 over (under) expenditures 1,359,514.00 1,356,014.00 1,356,705.98 691.98 VI OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special assessments 4,468.00 4,468.00 4,353.67 (114.33) Transfers out (1,320,000.00) (1,320,000.00~ (1,320,000.00) Total other financing sources and uses and special items (1,315,532.00) (1,315,532.00) (1,315,646.33) (114.33) Net change in fund balances 43,982.00 40,482.00 41,059.65 577.65 Fund balances --beginning 210,978.87 210,978.87 210,978.87 Fund balances --ending $ 254,960.87 $ 251,460.87 $ 252,038.52 $ 577.65 lent Auditors' Report. City of Cape Girardeau Capital Improvement Sales Tax-Flood Control Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30,2012 Variance with Budgeted Amounts Final Budget ­ Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue $ $ $J Total revenues EXPENDITURES Total expendilures Excess (deficiency) of revenues over (under) expenditures \0 0'\ OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out (44,000.00) (43,510.29) 489.71 Total other financing sources and uses and special items (44,000.00) (43,510.29) 489.71 Net change in fund balances (44,000.00) (43,510.29) 489.71 Fund balances -beginning 43,510.29 43,510.29 43,510.29 Fund balances -ending $ 43,510.29 $ (489.71) $ $ 489.71 See Independent Auditors' Report. City of Cape Girardeau Capital Improvement Sales Tax-Water System Improvements Statement of Revenues, Expenditures, and Changes in Fund Balances -Budgqt and Actual For the Year Ended June 30, 2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget ­ Positive (Negative) REVENUES Taxes Investment revenue Total revenues $ 2,225,802.00 101,000.00 2,326,802.00 $ 2,225,802.00 101,000.00 2,326,802.00 $ 2,331,832.70 73,374.76 2,405,207.46 $ 106,030.70 (27,625.24) 78,405.46 EXPENDITURES Current: Development Services: Total current 42,000.00 42,000.00 42,000.00 42,000.00 29,271.63 29,271.63 12,728.37 12,728.37 \0 -.l Debt service: Administrative charges Interest Principal Total debt service Total expenditures 58,465.00 534,402.00 1,257,300.00 1,850,167.00 1,892,167.00 58,465.00 810.577.00 15,307,300.00 16,176,342.00 16,218,342.00 56,406.05 810.294.47 15,306,800.00 16,173,500.52 16,202,772.15 2,058.95 282.53 500.00 2,841.48 15.569.85 Excess (deficiency) of revenues over (under) expenditures 434,635.00 (13,891,540.00) (13,797,564.69) 93,975.31 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Total other financing sources and uses and speCial items Net change in fund balances 1,400,000.00 1,400,000.00 1,834,635.00 15,250,000.00 15,250,000.00 1,358,460.00 15,248,651.57 15,248,651.57 1,451,086.88 (1,348.43) (1,348.43) 92,626.88 Fund balances ­beginning Fund balances -ending 1,337,118.33 $ 3,171,753.33 1,337,118.33 $ 2,695,578.33 1,337,118.33 $ 2,788,205.21 $ 92,626.88 Seelndeoende REVENUES Investment revenue Total revenues EXPENDITURES Debt service: Administrative charges Interest Principal Total debt service \0 00 Capital outlay: Capital Improvement Projects City of Cape Girardeau Transportation Sales Tax Trust Fund Statement of Revenues. Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Budgeted Amounts Original Final Actual Amounts $ 4,579.00 4,579.00 $ 4,579.00 4,579.00 $ 5,790.76 5,790.76 450.00 7,503.00 123,000.00 130,953.00 450.00 8,003.00 123,000.00 131,453.00 261.25 7,882.79 123,000.00 131,144.04 54.00 Variance with Final Budget ­ Positive (Negative) $ 1,211.76 1,211.76 188.75 120.21 308.96 (54.00) Total capital outlay Total expenditures 130,953.00 131,453.00 54.00 131,198.04 (54.00) 254.96 Excess (deficiency) of revenues over (under) expenditures (126,374.00) (126,874.00) __(125,407.28) 1,466.72 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special assessments Total other financing sources and uses and special items Net change in fund balances 29,999.00 29,999.00 (96,375.00) 29,999.00 29,999.00 (96,875.00) 26,821.22 26,821.22 (98,586.06) (3,177.78) (3,177.78) (1,711.06) Fund balances --beginning Fund balances.-ending $ 165,190.06 68,815.06 $ 165,190.06 68,315.06 165,190.06 $ 66,604.00 $ (1,711.06) City of Cape Girardeau Capital Improvement Sales Tax-Sewllf System Improvements Statement of Revenues, Expenditures, and Changes In Fund Balances -Budget and Actual For the Year Ended June 3D, 2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget ­ Positive ___(Negative) REVENUES Taxes Investment revenue $ 2,225,802.00 33,750.00 $ 2,225,802.00 33,750.00 $ 2,331,863.76 19,616.57 $ 106,061.76 (14,133.43) Total revenues 2,259,552.00 2,259,552.00 2,351,480.33 91,92B.33 EXPENDITURES Current Development Services Total current Total expenditures 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00 42,000.00 29,271.63 29,271.63 29,271.63 12,728.37 12,728.37 12,728.37 Excess (deficiency) of revenues over (under) expenditures 2,217,552.00 2,217,552.00 2,322,208.70 104,656.70 \0 \0 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 1,113,700.00 (1,624,914.00) (511,214.00) 1,706,338.00 1,113,700.00 (1,624,914.00) (511,214.00) 1,706,338.00 1,113,700.00 (1,624,914.00) (511,214.00) 1,810,994.70 104,656.70 Fund balances -beginning Fund balances ­ending 526,262.62 $ 2,232,600.62 526,262.62 $ 2,232,600.62 526,262.62 $ 2,337,257,32 $ 104,656.70 0 0 - City of Cape Girardeau Transportation Sales Tax Trust Fund II Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 REVENUES Original Budgeted Amounts Final Actual Amounts Variance with Final Budget- Positive (Negative) Investment revenue Total revenues $ 3,386.00 3,386.00 $ 6,042.19 6,042.19 $ EXPENDITURES Capital outlay: Capital Improvement Projects Total capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures 3,386.00 3,386.00 6,042.19 2,656.19 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special assessments T rens fers out Total other financing sources and uses and special items Net change in fund balances 29,277.00 (32,663.00) (3,386.00) 29,277.00 (32,663.00) (3,386.00) ?9,362.21 (32,663.00) (3,300.79) 2,741.40 85.21 2,741.40 Fund balances -beginning Fund balances --ending $ 110,552.21 110,552.21 $ 110,552.21 110,552.21 $ 110,552.21 113,293.61 $ 2,741.40 City of Cape Girardeau Fire Sales Tax Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30,2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget. Positive (Negative) REVENUES Taxes Total revenues 2.159,611.00 $ 2.159.611.00 2.159.611.00 $ 2.261,084.09 2.261.084.09 $ 101,473.09 101,473.09 EXPENDITURES Total expenditures Excess (deficiency) of revenues over (under) expenditures 2,159,611.00 2.159,611.00 2,261,084.09 101,473.09 ....... OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out Total other finanCing sources and uses and special items Net change in fund balances (2,157,111.00) (2,157,111.00) 2,500.00 (2.287,111.00) (2.287,111.00) (127,500.00) (2.273,970.41 ) (2,273.970.41) (12,886.32) 13.140.59 13,140.59 114.613.68 Fund balances ­beginning Fund balances ­ending $ 219.412.49 216.912.49 $ 89,412.49 216.912.49 $ 204.026.17 $ 114.613.68 City of Cape Girardeau Public Safety Trust Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30,2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget ­ Positive (Negative) REVENUES Investment revenue Total revenues $ 5,288.00 5,288.00 $ 5,288.00 5,288.00 $ 24.324.89 24,324.89 $ 19,036.89 19,036.89 EXPENDITURES Current: Public Safety Total current 28,000.00 28,000.00 41,910.00 41,910.00 14,513.43 14,513.43 27,396.57 27,396.57 Debt service: ........ 0 IV Administrative charges Interest Principal Total debt service 500.00 131,416.00 583,992.00 715,908.00 500.00 131,416.00 583,992.00 715,908.00 126.380.44 583.991.94 710.372.38 500.00 5,035.56 0.06 5.535.62 Capital outlay: Public Safety Total capital outlay Total expenditures 240,522.00 240.522.00 984.430.00 271.951.00 271,951.00 1,029.769.00 282.178.29 282,178.29 1,007,064.10 (10.227.29) (10.227.29) 22,704.90 Excess (deficiency) of revenues over (under) expenditures (979,142.00) (1.024,481.00) (982.739.21) 41.741.79 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Transfers out Total other financing sources and uses and speCial items Net change in fund balanqls Fund balances beginning Fund balances -ending 2,157,111.00 (1.209,290.00) 947,821.00 (31 ,321.00) 858.832.69 $ 827,511.69 2.287.111.00 (1.274,234.00) 1.012,877.00 (11,604.00) 858.832.69 $ 847.228.69 2.273,970.41 (1.267,719.21) 1.006.251.20 23,511.99 858.832.69 $ 882,344.68 (13.140.59) 6,514.79 (6,625.80) 35,115.99 $ 35.115.99 City of Cape Girardeau Debt Service Statement of Revenues. Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30. 2012 Variance with Budgeted Amounts Final Budget- Positive Original Final Actual Amounts (Negative) REVENUES Taxes Investment revenue $ 2,951.00 $ 2,951.00 $ 3.71 2,969.39 $ 3.71 Total revenues 2,951.00 2,951.00 2,973.10 22.10 EXPENDITURES Current: Administrative Debt Service 0.06 (0.06) Total current 0.06 (0.06) ,..... 0 w Debt service: Administrative charges Interest Principal Total debt service 1,952.00 32,000.00 33,952.00 2,052.00 32,000.00 34,052.00 2,003.01 32,000.00 34,003.01 48.99 48.99 Total expenditures 33,952.00 34,052.00 34,003.07 48.93 Excess (deficiency} of revenues over (under) expenditures (31,001.00) (31,101.00) (31,029.97) 71.03 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special assessments Total other financing sources and uses and special items Net change in fund balances 32,999.00 32,999.00 1,998.00 32,999.00 32,999.00 1,898.00 32,999.11 32,999.11 1,969.14 0.11 0.11 71.14 Fund balances -beginning Fund balances -ending $ 22,235.04 24,233.04 $ 22,235.04 24,133.04 $ 22,235.04 24,204.18 $ 71.14 City of Cape Girardeau General Capital Improvements Statement of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual For the Year Ended June 30, 2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget· Positive (Negative) REVENUES Intergovernmental Investment revenue $ $ $ 3,764.02 $ 3,764.02 Total revenues 3,764.02 3,764.02 ..­ o .j:>. EXPENDITURES Capital outlay: Capital Improvement Projects Total capital outlay Total expenditures 75,000.00 75,000.00 75,000.00 64,378.39 64,378.39 64,378.39 10,621.61 10,621.61 10,621.61 Excess (deficiency) of revenues over (under) expenditures -_........... _._­(75,000.00) (60,614.37) 14,385.63 Fund balances beginning Fund balances -ending 216,199.17 $ 216,199.17 216,199.17 $ 141,199.17 216,199.17 $ 155,584.80 $ 14,385.63 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 June 30, 2012 Variance with Budgeted Amounts Final Budget ­ Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue Total revenues EXPENDITURES Total expenditures ...­ 0 Vl Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Special Assessments Total other financing sources and uses and special items Net change in fund balances Fund balances --beginning Fund balances -ending $ 3,543.00 3,543.00 3,543.00 $ 9,602.00 9,602.00 13,145.00 54,732.78 67,877.78 $ 3,543.00 3,543.00 3,543.00 9,602.00 9,602.00 13,145.00 54,732.78 $ 67,877.78 $ 5,988.52 5,988.52 5,988.52 9,192.37 9,192.37 15,180.89 54,732.78 $ 69,913.67 $ 2,445.52 2,445.52 2,445.52 (409.63) (409.63) 2,035.89 $ 2,035.89 See Independent Auditors' Report. City of Cape Girardeau Park Improvements Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Budgeted Amounts Original Final Actual Amounts REVENUES Intergovernmental Investment revenue Total revenues EXPENDITURES ........ 0 0\ Capital outlay Capital Improvement Projects Total capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Total other financing sources and uses and special items. Net change in fund balances Fund balances -beginning Fund balances -endina $ $ $ 127,331.79 0.76 127,332.55 138,000.00 138,000.00 138,000.00 130,336.64 130,336.64 130,336.64 (138,000.00) (3,004.09) (138,000.00) 21,327.16 21,327.16 18,323.07 $ (7,957.79) (7,957.79) $ (145,957.79) $ (7,957.79) 10,365.28 Variance with Final Budget- Positive (Negative) $ 127,331.79 0.76 127,332.55 7,663.36 7,663.36 7,663.36 134,995.91 21,327.16 21,327.16 156,323.07 $ 156,323.07 See Independent Auditors' Report. City of Cape Girardeau Community Development Block Grant Projects Statement of Revenues, Expenditures, and Changes In Fund Balances -Budget and Actual For the Year Ended June 30, 2012 . Original Budgeted Amounts Final Actual Amounts Variance with Final Budget ­ Positive (Negative) REVENUES Intergovernmental Investment revenue $ 675.00 $ 675.00 $ 0.06 708.12 $ 0.06 33.12 Total revenues 675.00 675.00 708.18 33.18 ......... 0 -..l EXPENDITURES Current: Development Services Total current Debt service: Interest Total debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures 675.00 650.00 650.00 650.00 25.00 121.00 121.00 677.52 677.52 798.52 (90.34) (121.00) (121.00) (27.52) (27.52) (148.52) (115.34) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Total other financing sources and uses and special items 1,000.00 1,000.00 1,108.96 1,108.96 108.96 108.96 Net change in fund balances 675.00 1,025.00 1,018.62 (6.38) fund balances beginning 37,161.84 37,161.84 37,161.84 fund balances ending $ 37,836.84 $ 38,186.84 $ 38,180.46 $ (6.38) City of Cape Girardeau Transportation Sales Tax Trust Fund IV Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 3D, 2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget ­ Positive (Negative) REVENUES Taxes Intergovemmental Investment revenue $ 4,319,223.00 30,000.00 49,500.00 $ 4,319,223.00 30,000.00 49,500.00 $ 4,522,317.81 30,000.00 57,854.72 $ 203,094.81 8,354.72 Total revenues 4,398,723.00 4,398,723.00 4,610,172.53 211,449.53 ,....... 0 00 EXPENDITURES Current Development Services Total current Capital outlay: Capital improvement projects Total capital outlay 5,100,000.00 5,100,000.00 7,202,000.00 7,202,000.00 66,152.87 66,152.87 6,869,896.95 6,869,896.95 (66,152.87) (66,152.87) 332,103.05 332,103.05 Total expenditures 5,100,000.00 7,202,000.00 6,936,049.82 265,950.18 Excess (deficiency) of revenues over (under) expenditures (701,277.00) (2,803,277.00) (2,325,877.29) \. 477,399.71 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Total other financing sources and uses and special items Net change in fund balances 135,000.00 135,000.00 (566,277.00) 135,000.00 135,000.00 (2,668,277.00) 135,000.00 135,000.00 (2,190,877.29) 477,399.71 Fund balances --beginning Fund balances --ending 1,452,788.56 $ 886,511.56 $ 1,452,788.56 (1,215,488.44) $ 1,452,788.56 (738,088.73) $ 477,399.71 City of Cape Girardeau Park Stonn Water Sales Tax Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Budgeted Amounts Original Final REVENUES Taxes Investment revenue Total revenues EXPENDITURES Total expenditures ....... o \0 Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out Total other financing sources and uses and special items Net change in fund balances Fund balances ­beginning Fund balances -ending Actual Amounts $ 1,165,409.16 13,488.52 1,178,897.68 1,178,897.68 (1,050,759.19) (1,050,759.19) 128,138.49 212,660.12 $ 340,798.61 Variance with Final Budget ­ Positive (Negative) $ 52,508.16 11,238.52 63,746.68 63,746.68 81,008.81 81,008.81 144,755.49 $ 144,755.49 $ 1,112,901.00 2,250.00 1,115,151.00 1,115,151.00 (1,131,768.00) (1,131,768.00) (16,617.00) 212,660.12 $ 196,043.12 $ 1,112,901.00 2,250.00 1,115,151.00 1,115,151.00 (1,131,768.00) (1,131,768.00) (16,617.00) 212,660.12 $ 196,043.12 See Independent Auditors' Report. City of Cape Girardeau Park Storm Water Sales Tax-Capital Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 3D, 2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget ­ Positive (Negative) REVENUES Taxes Investment revenue Total revenues $ 3,338,702.00 32,000.00 3,370,702.00 $ 3,338,702.00 32,000.00 3,370,702.00 $ 3,496,227.50 37,173.06 3,533,400.56 $ 157,525.50 5,173.06 162,698.56 ,....,.... 0 EXPENDITURES Debt service: Administrative charges Interest Principal Total debt service 3,700.00 593,119.00 1,895,000.00 2,491,819.00 3,700.00 593,119.00 1,895,000.00 2,491,819.00 3,108.88 593,118.76 1,895,000.00 2,491,227.64 591.12 0.24 591.36 Capital outlay: Parks and Recreation Total capital outlay Total expenditures 637,600.00 637,600.00 3,129,419.00 637,600.00 637,600.00 3,129,419.00 577,853.33 577,853.33 3,069,080.97 59,746.67 59,746.67 60,338.03 Excess (deficiency) of revenues over (under) expenditu res 241,283.00 241,283.00 464,319.59 223,036.59 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 565,000.00 (392,000.00) 173,000.00 414,283.00 565,000.00 (567,000.00) (2,000.00) 239,283.00 305,396.58 (489,607.00) (184,210.42) 280,109.17 (259,603.42) 77,393.00 (182,210.42) 40,826.17 Fund balances --beginning Fund balances -ending 1,425,207.04 $ 1,839,490.04 1,425,207.04 $ 1,664,490.04 1,425,207.04 . $ 1,705,316.21 $ 40,826.17 City of Cape Girardeau Housing Development Grants Statement of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual For the Year Ended June 30,2012 Budgeted Amounts Original Final Actual Amounts REVENUES Intergovernmental $ 185,000.00 $ 185,000.00 $ 513,677.16 Investment revenue 117.87 Total revenues 185,000.00 185,000.00 513,795.03 EXPENDITURES Current: Development Services 185,000.00 414,000.00 389,804.46 Total current _. 185,000.00 414,000.00 389,804.46 ...... Debt service: ...... Interest 3,000.00 3,217.11 Total debt service 3,000.00 3,217.11 Total expenditures 185,000.00 417,000.00 393,021.57 Excess (deficiency) of revenues over (under) expenditures __(232,000.00) 120,773.46 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 36,000.00 37,630.69 Total other financing sources and uses and special items 36,000.00 37,630.69 Variance with Final Budget· Positive (Negative) $ 328,677.16 117.87 328,795.03 24,195.54 24,195.54 (217.11) (217.11) 23,978.43 352,773.46 1,630.69 1,630.69 Net change in fund balances (196,OOO.00) 158,404.15 354,404.15 Fund balances ­beginning (177,507.29) (177,507.29) (177,507.29) Fund balances ­ending $ (177,507.29) $ (373,507.29) $ (19,103.14) $ 354,404.15 City of Cape Girardeau Casino Revenue Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 3D, 2012 Budgeted Amounts Original Final Actual Amounts REVENUES Investment revenue Total revenues EXPENDITURES Total expenditures Excess (deficiency) of revenues over (under) expenditures ..... N 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 $ $ $ 141.03 141.03 141.03 260,000.00 (260,000.00) 260,000.00 (260,000.00) 260,000.00 (260,000.00) $ 8,674.26 8,674.26 $ 8,674.26 8,674.26 $ 141.03 8,674.26 8,815.29 Variance with Final Budget ­ Positive (Negative) $ 141.03 141.03 $ 141.03 Seelndepen 141.03 141.03 City of Cape Girardeau FAU Grant Projects Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Original Budgeted Amounts Final Actual Amounts Variance with Final Budget- Positive (Negative) REVENUES Intergovernmental Investment revenue $ 2,158,719.00 6.750.00 $ 2,158,719.00 6.750.00 $ 2,048,767.20 9,739.52 $ (109,951.80) 2,989.52 Total revenues 2.165,469.00 2.165,469.00 2,058,506.72 (106,962.28) ....... ...... w EXPENDITURES Capital outlay: Capital Improvement Projects Total capital outlay Total expenditures 2,639,000.00 2,639,000.00 2,639,000.00 2,639,000.00 2,639,000.00 2,639,000.00 2,412,326.31 2,412,326.31 2,412,326.31 226,673.69 226,673.69 226,673.69 Excess (deficiency) of revenues over (under) expenditures (473,531.00) (473,531.00) (353,819.59) 119,711.41 Net change in fund balances (473,531.00) (473,531.00) (353,819.59) 119,711.41 Fund balances -beginning Fund balances -ending 517,716.84 $ 44,185.84 517,716.84 $ 44,185.84 517,716.84 $ 163.897.25 $ 119,711.41 See Independent Auditors' Report. City of Cape Girardeau Sewer Statement of Revenues, Expenditures, and Changes In Fund Balances· Budget and Actual For the Year Ended June 3D, 2012 Variance with Budgeted Amounts Final Budget. Positive Onglnal Final Actual Amounts (NegativeI REVENUES Intergovemmental $ $ $ 4,592A5 $ 4,592A5 Residential charges 4,681,361.00 4,681,361.00 4,621,670.91 (59,690.09) Commercial charges 2,880,002.00 2,880,002.00 2,686,269.58 (193,732A2) Other fees and charges 55,650.00 55,650.00 124,929.31 69.279.31 Intemal charges 9,525.07 9,525.07 Miscellan eou s 800.00 800.00 250A2 (549.58) Investment revenu e 474,943.00 474,943.00 477,324.22 2,381.22 Total revenues 8,092,756.00 8,092,756.00 7.924,561.96 (168,194.04) EXPENDITURES Current: Contractual services 425,023.00 545,421.03 515,254.83 30,166.20 General operating expenses 215,474.00 218,819.49 491,112.90 (272,293.41) Intemal service expense 203,982.00 203,982.00 176,113.24 25,868.76 Material and supplies 538.242.00 . 512,014.48 486,250.80 25,763.68 ....... Personnel services 1,602,997.00 1,602,997.00 1,491,458.31 111,538.69 ....... .j:>. Special projects expense 1611,000.00 168,000.00 24,929.00 143,071.00 Tota! current 3,153,718.00 3.251,234.00 3,187,119.08 64,114.92 Debt service: Administrative charges 90,039.00 90,039.00 87,266.00 2,771.00 Interest 636,420.00 636,420.00 263,945.97 372,474.03 Issuance cost 199,000.00 (199,000.00) Principal 1,597,3211.00 1,597,328.00 2,251,500.00 (654,172.00) Total debt service 2,323,787.00 2,323,787.00 2,1101,713.97 __(477,926.97) Capital outlay: Capftallmprovement Projects 1,374,237.00 2,411,091.60 2,398,979A7 12,112.13 Equipment 388,231.00 437,860AO 133,132.86 304,727.54 Other Capital Expenditures 55,000.00 595,000.00 487,927.99 107.072.01 Total capital outlay 1,817,468.00 3,443,952.00 3,020,040.32 423,911.66 Total expenditures 7,294,973.00 9,018,973.00 9.006,873.37 10,099.63 Excess (defICiency) of revenues over (under) expenditures 797,783.00 (926,217.00) (1,084,311Al) (158,094Al) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 2,015,764.00 2,065,784.00 2,072,059.29 6,275.29 Connection fees 55,000.00 55,000.00 100,221.00 45,221.00 Special assessments 5,000.00 5,000.00 14,053.55 9,053.55 Asset disposition 28,200.00 28,200.00 7,654.25 (20,545.75) Bond proceeds 199,000.00 199,000.00 Transfers out (2,513,700.00) (2,513,700.00) (2,571,401.71) (57,701.71) Total other financing sources and uses and speelal Hems (409,716.00) (359,716.001 1176,413.62) 181.302.38 Net change In fund balances 388,067.00 (1.285,933.00) (1,262,725.03) 23,207.97 Fund balances -beginning 2.163,501.92 2.163.501.92 2,163,501.92 Prior period adjustment 5,731.25 5,731.25 Fund balances -ending $ 2,551,568.92 $ 877,568.92 $ 906,506.14 $ 28,939.22 See Independent Auditors' Report City of Cape Girardeau Water Statement of Revenues, Expenditures, and Changes In Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Vanance with Budgjtted A I11()unts_ Final Budget ­ Positive Onglnal Final Actual Amounts (Negative) REVENUES Intergovemmentlil $ $ $ 146.25 $ 146.25 Resldenlial charges 3,804,200.00 3,804,200.00 3,821,416.90 17,216.90 CommerCial charges 2,743.170.00 2,743,170.00 2,626,848.85 (116,321.15) Other fees and charges 160,750.00 160,750.00 221,425.25 60,675.25 Miscellaneous 16,880.00 16,880.00 26,072.98 9,192.98 Investment revenue 108,000.00 106,000.00 136,991.70 28,991.70 Total revenues 6,833,000.00 6,833,000.00 6,832,901.93 (98.07) EXPENDITURES Current: Contractual services 2,640,465.00 2,795,465.00 2,658,671.58 136,793.42 General operating expenses 365,996.00 366,242.67 388,953.21 (22,710.54) Internal service expense 111,810.00 111,810.00 124,009.75 (12,199.75) Material and supplies 1,362,169.00 1,342,548.26 1,082,286.64 260,261.62 Personnel services 282,335.00 282,335.00 245,085.19 37,249.61 Special projects expense 115,000.00 340,000.00 391,159.41 (51,159.41) VI Tota! curren! 4,877,775.00 5,238,400.93 __4,890.165.78 348,235.15 Debt service: Administrative charges 300.00 300.00 470.25 (170.25) Interest 106,800.00 106,800.00 198,998.10 (92,198.10) Issuance cost 211,000.00 147,368.75 63,631.25 Principal 965,000.00 965,000.00 965,000.00 Total debt service 1,072,100.00 1,283,100.00 1,311,837.10 (28,737.10) Capital outlay: Capijallmprovement Projects 327,000.00 237,000.00 206,270.46 30,729.54 Equipment 179,684.00 184,058.07 137,688.38 46,369.69 Other Capaal Expendftures 15,773.85 (15,773.85) Total capftal outlay 506,684.00 421,058.07 359,732.69 61,325.38 Total expendftures 6,456,559.00 6,942,559.00 6.561,735.57 380,823.43 Excess (deficiency) of revenues over (under) expendftures 376,441.00 (109,559.00) 271,166.36 380,725.36 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 10,377.20 10,377.20 Investment revenue 600.00 600.00 1,163.63 563.63 Special assessments 1,600.00 1,600.00 6,786.24 5,186.24 Bond proceeds 13,999,459.30 13,999,459.30 Asset disposKlon 11,650.00 11,650.00 19,088.74 7,438.74 TranSfers out (13,850,000.00) (13,855,446.28) (5,446.26) Total other financing sources and uses and special Rems (13,636,150.00) 181,426.83 14,017,578.83 . Net change in fund balances 390,291.00 (13,945,709.00) 452,595.19 14,398,304.19 Fund balances ­beginning 6,293,842.34 6,293,842.34 6,293,842.34 Prior period adjustment (4,223.64) (4,223.64) Fund balances ending $ 6,742,213.89 $ 14,394,080.55 See Independent Audhors' Report. -- City of Cape Girardeau Solid Waste Statement of Revenues. Expenditures. and Changes in Fund Balances -Budget and Actual For the Year Eni:led June 30. 2012 Variance with Budgeted Amounts Final Budget- Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 15,882.00 $ 15,882.00 $ 13,594.39 $ (2,287.61) Residential charges 2,185,952.00 2,185,952.00 2,141,609.20 (44,342.80) Commercial charges 31,500.00 31,500.00 39,094.45 7,594.45 Transfer station charges 981,386.00 981,386.00 930,437.58 (50,948.42) Other fees and charges 82,000.00 82,000.00 90,949.59 8,949.59 Miscellaneous 39,000.00 39,000.00 66,888.52 27,888.52 Investment revenue 22,500.00 22,500.00 26,599.57 4,099.57 Total revenues 3,358,220.00 3,358,220.00 3,309,173.30 (49,046.70) EXPENDITURES Current: Contractual services 1,299,384.00 1,385,687.75 1,371,499.88 14,187.87 ..... ..... 0\ General operating expenses Internal service expense 33,326.00 188,558.00 32,992.67 326,058.00 36,475.74 345,158.52 (3,483.07) (19,100.52) Material and supplies 249,668.00 270,628.58 260,631.50 9,997.08 Personnel services 1,075,487.00 1,075,487.00 1,058,204.84 17,282.16 Special projects expense 109,000.00 109,000.00 124,095.74 (15,095.74) Total current 2.955,423.00 3,199,854.00 3,196,066.22 Debt service: Administrative charges 418.00 (418.00) Interest 73,389.00 73,389.00 63,909.70 9,479.30 Principal 202,508.00 202,508.00 202,508.06 (0.06) Total debt service 275,897.00 275,897.00 266,835.76 9,061.24 Capital outlay: EqUipment 398,568.00 424,330.00 421,606.77 2,723.23 Other capital expenditures 32,907.00 32,476.41 430.59 Total capital outlay 398,568.00 457,237.00 454,083.18 3,153.82 Total expenditures 3,629,888.00 3,932,988.00 3,916,985.16 16,002.84 Excess (deficiency) of revenues over (under) expenditures (271,668.00) (574,768.00) (607,811.86) (33,043.86) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 5,500.00 5,500.00 Asset disposition 98.750.00 98,750,00 92,030.00 (6,720.00) Total other financing sources and uses and special items 98,750.00 98,750.00 97,530.00 (1.220.00) Net change in fund balances (172,918.00) (476,018.00) (510,281.86) (34,263.86) Fund balances -beginning 993,738.31 993,738.31 993,738.31 Fund balances -ending $ 820,82().31 $ 517,720.31 $ 483,456.45 $ (34,263.86) +....ne* t:1Ql'"\nrt City of Cape Girardeau Golf Course Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30,2012 Variance with Budgeted Amounts Final Budget ­ Positive Original Final Actual Amounts (Negative) REVENUES User fees $ 492,650.00 $ 492.650.00 $ 455.738.50 $ (36,911.50) Concession revenues 30,450.00 30,450.00 42,730.48 12,280.48 Miscellaneous 1.370.34 1,370.34 Investment revenue 1,125.00 840.21 Total revenues 524,225.00 .' 524,225.00 500,679.53 (23.545.47) EXPENDITURES Current: Contractual services 21,390.00 21,390.00 20,428.29 961.71 General operating expenses 10,790.00 10,614.35 8,499.72 2,114.63 ...... ...... -...J Internal service expense Material and supplies Personnel services 49,513.00 96,686.00 384,781.00 49,513.00 106,536.65 386,931.00 40,601.18 111.655.45 387,335.18 8.911.82 (5,118.80) (404.18) Special projects expense 9,700.00 9.625.00 6,186.37 3,438.63 Total current 572,860.00 584,610.00 574,706.19 9,903.81 Debt service: Interest 9,210.00 9,210.00 9,210.42 (0.42) Principal 28,056.00 28,056.00 28,056.14 (0.14) Total debt service 37,266.00 37,266.00 37,266.56 Capital outlay: Other capital expenditures 10,000.00 9,224.00 776.00 Total capital outlay 10,000.00 9,224.00 776.00 Total expenditures 610,126.00 631,876.00 621,196.75 10,679.25 Excess (deficiency) of revenues over (under) expenditures (85,901.00) (107,651.00) (120.517.22) (12,866.22) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 85,901.00 85,901.00 104,892.19 18,991.19 Asset disposition 15,723.42 15,723.42 Total other finanCing sources and uses and special items 85,901.00 85,901.00 120,615.61 34,714.61 Net change in fund balances (21,750.00) 98.39 21,848.39 Fund balances --beginning 14,494.79 14,494.79 14,494.79 FUnd balances -ending $ 14,494.79 $ (7,255.21) $ 14.593.18 $ 21,848.39 See Independent Auditors' Report. City of Cape Girardeau Softball Complex Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Budge~cI Amounts Original Final Actual Amounts REVENUES Intergovernmental $ $ $ 162.49 User fees 167,810.00 167,810.00 183,113.20 Concession revenues 63,400.00 63,400.00 77,600.20 Miscellaneous 3,895.00 3,895.00 2,685.65 Investment revenue 450.00 450.00 726.46 Total revenues 235,555.00 235,555.00 264,288.00 EXPENDITURES Current: Contractual.services 29,969.00 27,719.00 27,661.60 General operating expenses 3:140.00 3,130.35 3,566.66 ...... ...... Internal service expense 32,693.00 32,693.00 29,589.32 00 Material and supplies 98,065.00 120,824.65 112,604.52 Personnel services 496,904.00 508,854.00 515,845.04 Special projects expense 35,042.00 37,042.00 42,337.56 Total current 695,813.00 730,263.00 731,604.70 Debt service: Interest 6,909.00 6,909.00 6,908.77 Principal 17,467.00 17,467.00 17,467.14 Total debt service 24,376.00 24,376.00 24,375.91 Capital outlay: Other Capital Expenditures 34,125.00 Total capital oullay 34,125.00 Total expenditures 720,189.00 788,764.00 755,980.61 Excess (deficiency) of revenues over (under) expenditures (484,634.00) (553,209.00) (491,692.61 ) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 484,634.00 524,634.00 483,101.08 Asset disposition 8,631.87 Total other financing sources and uses and special items 484,634.00 524,634.00 491,732.95 Net change in fund balances (28,575.00) 40.34 Fund balances beginning 3,106.23 3,106.23 3,106.23 Fund balances -ending $ 3,106.23 $ (25,468.77) $ 3,146.57 Variance with Final Budget ­ Positive (Negative) $ 162.49 15,303.20 14,200.20 (1,209.35) 276.46 28,733.00 57.40 (436.31) 3,103.68 8,220.13 (6,991.04) (5,295.56) (1,341.70) 0.23 (0.14) 34,125.00 34,125.00 32,783.39 61,516.39 (41,532.92) 8,631.87 (32,901.05) 28,615.34 $ 28,615.34 0.09 City of Cape Girardeau Information Technology Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget ­ Positive Original Final Actual Amounts ___(Negative) REVENUES Internal charges Investment revenue $ 411,940.00 2,250.00 $ 411,940.00 2,250.00 $ 411,940.00 3,030.69 $ 780.69 Total revenues 414,190.00 414,190.00 414,970.69 780.69 ...... ...... \0 EXPENDITURES Current Contractual services General operating expenses Material and supplies Personnel services Total current Capital outlay: Equipment Total capital outlay Total expenditures 121,255.00 3,600.00 68,808.00 145,527.00 339,190.00 75,000.00 75,000.00 414,190.00 130,565.00 4,290.00 77,808.00 178,577.00 391,240.00 75,000.00 75,000.00 466,240.00 111,811.98 3,519.54. 13,225.70 175,633.15 304,190.37 138,717.11 138,717.11 442,907.48 18,753.02 770.46 64,582.30 2,943.85 87,049.63 (63,717.11) (63,717.11) 23,332.52 Excess (deficiency) of revenues over (under) expenditures __(52,050.00) (27,936.79) 24,113.21 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in Total other financing sources and uses and special items Net change in fund balances (52,050.00) 56,000.00 56,000.00 28,063.21 56,000.00 56,000.00 80,113.21 Fund balances ­beginning Fund balances ending $ 157,525.58 157,525.58 157,525.58 $ 105,475.58 $ 157,525.58 185,588.79 $ 80,113.21 s'Report. City of Cape Girardeau Fleet Management Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Budgeted Amounts Original Final Actual Amounts REVENUES Internal charges $ 1,201,500.00 $ 1,201,500.00 $ 1,401,702.34 Miscellaneous 1,619.30 Investment revenue 6,446.00 6,446.00 4,743.90 Total revenues 1,207;946.00 1,207,946.00 1,408,065.54 EXPENDITURES Current: Contractual. services 222,673.00 262,673.00 244,075.47 General operating expenses 4,850.00 5,044.00 4,746.30 ...... Intemal service expense 4,112.00 4,112.00 4,112.00tv 0 Material and supplies 313,030.00 421,213.28 432,523.13 Personnel services 625,406.00 625,406.00 631,659.59 Total current 1,170,071.00 __1_,318,448.28 1,317,116.49 Debt service: Interest 237.06 Total debt service 237.06 Capital outlay: Equipment 66,875.00 68,997.72 64,995.47 Total capital outlay 66,875.00 68,997.72 64,995.47 Total expenditures 1,236,946.00 1,387,446.00 1,382,349.02 Excess (deficiency) of revenues over (under) expenditures (29,000.00) (179,500.00) 25,716.52 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Asset disposition 15,075.00 15,075.00 16,929.14 Transfers out (15,075.00) (15,075.00) (15,073.92) Total other financing sources and uses and special items 1,855.22 Net change in fund balances (29,000.00) (179,500.00) 27,571.74 FUnd balances -beginning 45,880.08 45,880.08 45,880.08 Fund balances --ending $ 16,880.08 $ (133,619.92) $ 73,451.82 Variance with Final Budget ­ Positive (Negative) $ 200,202.34 1,619.30 (1,702.10) 200,119.54 18,597.53 297.70 (11,309.85) (6,253.59) 1,331.79 (237.06) (237.06) 4,002.25 4,002.25 5,096.98 205,216.52 1,854.14 207,071.74 $ 207,071.74 1.08 REVENUES Internal charges Miscellaneous Investment revenue Total revenues EXPENDITURES Current: Contractual services ...... Total current tv ...... Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances --beginning Fund balances -ending City of Cape Girardeau Fringe Benefits Statement of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget. Positive Original Final Actual Amounts (Negative) $ 2,987,093.00 $ 2,987,093.00 $ 3,401,605.31 $ 414,512.31 1,679.65 1,679.65 40,069.71 6,319.71 3,020,843.00 3,020,843.00 3,443,354.67 422,511.67 3,442,093.00 137,812.09 3,017,093.00 3,442,093.00 3,304,280.91 137,812.09 3,017,093.00 3,442,093.00 3,304,280.91 560,323.76 3,750.00 (421,250.00) 139,073.76 560,323.76 1,770,153.19 1,770,153.19 1,770,153.19 $ 1,773,903.19 $ 1,348,903.19 $ 1,909,226.95 $ 560,323.76 See Independent Auditors' Report. REVENUES Internal charges Investment revenue Total revenues EXPENDITURES Current: Contractual services General operating expenses Material and supplies ....... Total current IV IV Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances -beginning Fund balances ending City of Cape Girardeau Risk Management Statement of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual For the Year Ended June 30,2012 Budgeted Amounts Original Final Actual Amounts $ 568,000.00 23,700.00 591,700.00 $ 568,000.00 23,700.00 591,700.00 $ 588,694.76 26,919.65 615,614.41 557,200.00 32,000.00 2,500.00 591,700.00 591,700.00 607,200.00 32,000.00 2,500.00 641,700.00 641,700.00 512,633.86 23,569.65 536,203.51 536,203.51 (50,000.00) 79,410.90 (50,000.00) 79,410.90 1,379,349.98 $ 1,379,349.98 1,379,349.98 $ 1,329,349.98 1,379,349.98 $ 1,458,760.88 Variance with Final Budget ­ Positive (Negative) $ 20,694.76 3,219.65 23,914.41 94,566.14 8,430.35 2,500.00 105,496.49 105,496.49 129,410.90 129,410.90 $ 129,410.90 City of Cape Girardeau Equipment Replacement Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30, 2012 Variance with Budgeted Amounts Final Budget ­ Positive Original Final Actual Amounts (Negative) REVENUES Internal charges $ 301,728.00 $ 301,728.00 $ 295,226.65 $ (6,501.35) Investment revenue 24,750.00 24,750.00 22,338.40 (2,411.60) Total revenues 326,478.00 326,478.00 317,565.05 (8,912.95) EXPENDITURES Debt service: Interest 2,850.00 2,850.00 Principal 40,000.00 40,000.00 ...... Total debt service 42,850.00 42,850.00 I'-.) w Capital outlay: Equipment 263,300.00 350,650.00 281,742.60 68,907.40 Total capital outlay 263,300.00 350,650.00 281,742.60 68,907.40 Total expenditures 263,300.00 _~93,50Q~ __ ~24,592.60 68,907.40 . Excess (deficiency) of revenues over (under) expenditures 63,178.00 (67,022.00) (7,027.55) 59,994.45 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 30,000.00 10,537.87 (19,462.13) Asset disposition 58,180.46 58,180.46 (5,500.00) (5,500.00)Transfers out Total other financing sources and uses and special items 30,000.00 63,218.33 33,218.33 63,178.00 (37,022.00) 56,190.78 93,212.78Net change in fund balances 1,032,351.56 1,032,351.56 1,032,351.56Fund balances --beginning Fund balances -ending $ 1,095,529.56 $ 995,329.56 $ 1,088,542.34 $ 93,212.78 See Independer REVENUES Ta)(es Investment revenue Total revenues EXPENDITURES Current Development Services Total current Capital outlay: ...... Capitallmprovemenl Projects tv . I""" T olal capita outlay Total e)(penditures E)(cess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances beginning Fund balances -ending City of Cape Girardeau Riverfront Region Economic Development Statement of Revenues, Expenditures, and Changes in Fund Balances· Budget and Actual For the Year Ended June 3D, 2012 Budgeted Amounts Original Final Actual Amounts $ $ $ 250,000.00 5,086.41 255,086.41 12,050.79 12,050.79 12,050.79 243,035.62 243,035.62 $ $ $ 243,035.62 Variance with Final Budget. Positive (Negative) $ 250,000.00 5,086.41 255,086.41 (12,050.79) (12,050.79) (12,050.79) 243,035.62 243,035.62 $ 243,035.62 ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants 4018 Sycamore Cairo, Illinois 62914 Telephone(618) 734-3300 16 South Silver Springs Road Cape Girardeau, Missouri 63703 Telephone (573) 334-7971 105 South Hope Jackson, Missouri 63755 Telephone(573) 243-3991 Facsimile (618) 734-3303 Facsimile (573) 334-8875 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 We have audited the City of Cape Girardeau, Missouri's compliance, with the types of compliance requirements described in the OMB Circular A-I33 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, 2012. 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 Standard'), issued by the Comptroller General of the United States; and OMB Circular A-133, Audits oj' 5,'lales, Local G01'l!rnmenfs. and Non-Profit Organi::ations. Those standards and OMB Circular A-1::;) require that vve plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements refelTed 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. J25 In our opinion. City of Cape Girardeau. Missouri complied. in all material respects. with the compliance requirements referred to ahove that could have a direct and material effect on each of its major federal programs for the year ended June 30. ~O 12. Internal Control Over Compliance ;v1anagement 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 detern1ine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-J 33, 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 nonnal course of perfonning 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 intemal 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. ~/~, IJN !I ~;1..'-( Cape Girardeau, Missouri December 18, 2012 126 BEUSSINK, HEY, ROE & STRODER, L.L.C. Certified Public Accountants 16 South Silver Springs Road 105 South Hope4018 Sycamore Cape Girardeau, Missouri 63703 Jackson, Missouri 63755Cairo, Illinois 62914 Telephone (573) 334-7971 Telephone{573) 243-3991Telephone(618) 734-3300 Facsimile (618) 734-3303 Facsimile (573) 334-8875 Facsimile (573) 243-3186 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ~ACCORD ANeE WlIlt GO ~'J;j?jjJ\;LENT A UDfllNG ~l;J/jJ)A RDS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the financial statements of the governmental actlvltles, 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, 2012, which collectively comprise City of Cape Girardeau, Missouri's basic financial statements and have issued our report thereon dated December 18, 2012. 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 Management of the City of Cape Girardeau, Missouri is responsible for establishing and maintaining effective internal control over financial reporting. In planning and perfornling 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 011 the effectiveness of the City of Cape Girardeau. Missouri's internal control over tinancial 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 misstakments 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 financial statements will not be prevented. or detected and corrected on a timely basis. 127 Our consideration of internal control over financial reporting was for the limited purpose descrihed in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reponing that might he 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. ~ompliance 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 Standard). 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. ~"~, ,(k ~ ~I..L.C.I Cape Girardeau, Missouri December 18,2012 128 Cit\' or Llp0 OirardcH1L .\ lissollri SCHU)II J: OF L.\PI,smll 'UES ol FEDER, \1. \ W. \!ms hllthc Y",ar Flltkd .IUIlG ~II, 2012 I',S. DEP:\R·lMEj\.;JJ:!lJ>IFFN)E Loan or DOD PrOp0rl\ (non-cash) US DEPARTMENT OF 1 lOUSING .\NO URBAN DEVELOPI\IENT Passed Through Missouri Depart111~nl of Economic Development- COllllllunif.\' ))~velopmenl Block Grants/ State's Program and Non-Entitkment Grants III Hawaii Passed Through !,Iissomi lkpm1ment of Social Servic<ls ­ Emergency Shell"r Grants Program Passed Through Missouri Housing Development COll1mission Home Investment Partnerships Program TOTAL U.S, DEPAKPvlENT OF HOUSING Al\'D URBAN DEVELOP.\IENT IT,S. DEPARnlENT OF Jl:STICE: Passed Through I\l1ssoufi Depm1ment of Public Safety - Vloknce Against Women FOl1nula Grants Bul!etproof V~st Partnership Program Passed Through fhe Citv of Poplar BlutT: I'vlissouri Pass~d Ihrough the Soulh~asl f\1issouri Drug Task F()rc~- Public Sakt, Partnership and Com11lunit\' Policing {frant, .\RR.\ -Ed\\ard rhmc ~Icmorial Justice ,\ssistallcC Orant Program Cirant:; to UllIls of I ncal ()(WCIl1ll10I1ts TOT.\L I' S DEP.\RT\IE\;T OF .ltISTlO: I c(kral tTD\ 12. Prngram $ 14228 14.231 14.239 2004-ND·05 201O-DT-01 EROI640905 M-1 O-SG-29-0 1 00 M-II-SG-29-0100 $ $ 27.050 110.000 306,-185 J32.S87 16.588 16.607 201O-VAWA-OOII-OS 20]0-VAWA-091-0S NiA $ 19.771 I $ 36,632 4.716 1(,710 2009-SB-B9-2229 1.852 The i\CCOlllpaJl\'ing \iotc.s 10 Sch~dule of F.\penditures of Eedcral c\ wards \rc an Integral Part of This Report. 12<) City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Forthe Year Ended June 30,2012 Federal CFDA Program Federal GrantorlPass-Through Grantor Program Title Number Number Disbursements U.S. DEPARTMENT OF TRANSPORTATION: Passed Through Missouri Department of Transportation ­ Highway Planning and Construction (I) 20.205 STP-1500(014) $ 10,335 JOI0767A DP-1503(003) 625,276 SRTS-NI-H300(502) 4,434 DP-1500(020) 18,350 STP-1500(021) 4,669 $ 663,064 Highway Safety Cluster: State and Community Highway Safety 20.600 II-SA-09-2 $ 21,186 12-SA-09-002 36,972 I1-CP-09-1 90,684 12-CP-09-00 I 63,770 I1-PT -02-85 4.264 GAC035 1,853 12-0P-05-005 1,490 $ 220,219 Alcohol Impaired Driving Countermeasures Incentive Grants I 20.601 II-K8-03-76 $ 2,036 ll-K8-03-77 1,920 SAF006 790 12-0P-05-002 $ 4,919 Alcohol Open Container Requirements 20.607 12-154-AL-031 $ 1,227 12-154-AL-029 $ 8,298 Child Safety and Child Booster Seats Incentive Grants 20.613 SAF008 $ 386 TOTAL U.S. DEPARTMENT OF TRANSPORTATION $ 896,886 ENVIRONMENTAL PROTECTION AGENCY: Passed Through Missouri Department ofNatural Resources ­ Capitalization Grants for Clean Water State Revolving Funds (l) 66.458 C295531-01 $ 199,000 ARRA -Capitalization Grants for Drinking Water State Revolving Funds (I) 66.468 ER 1 0-ARRA-M040 1 0 136 $ 36,135 342,091 $ 378,226 ENVIRONMENTAL PROTECTION AGENCY, Carried Forward $ 577,226 The Accompanying Notes to Schedule of Expenditures of Federal Awards Are an Integral Part of This Report. 130 City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30,2012 Federal GrantorlPass-Through Grantor Program Title Federal CFDA ~ ENVIRONMENTAL PROTECTION AGENCY, Brought Forward Passed Through Missouri Environmental Improvement and Energy Resources Authority- ARRA -Brownfields Assessment and Cleanup Cooperative Agreement 66.818 TOTAL ENVIRONMENTAL PROTECTION AGENCY U.S. DEPARTMENT OF ENERGY: ARRA -Energy Efficiency and Conservation Block Grant Program (EECBG) 81.128 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES; Passed Through the Community Caring Counsel ­ Substance Abuse and Mental Health Services- Projects of Regional and National Significance U.S. DEPARTMENT OF HOMELAND SECURITY: Passed Through Missouri State Emergency Management Agency ­ Disaster Grants -Public Assistance (Presidentially Declared Disasters) Assistance to Firefighters Grant Passed Through Missouri State Emergency Management Agency ­ Citizen Community Resilience Innovation Challenge Law Enforcement Officer Reimbursement Agreement Program TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY TOTAL FEDERAL AWARDS (1) Identified major program. 93.243 97.036 97.044 97.053 97.090 Program Number N/A G IO-EECBG-02-097939524 SDA42070104 #FEMA-1980-DR-MO EMW-2007-FF-00 176 EMW-2008-FO-09141 EMW-2009-FO-09319 EMW-2011-FO-06441 20 IO-SS-TO-0039 2007-GE-T7-0034 2008-GE-T8-0014 HSTS0208HSLR050 $ $ Disbursements $ 577,226 2,711 $ 579,937 $ 16.694 $ 3,850 $ 184,213 41,692 37,228 21,612 26,819 127,351 21,459 8,967 11,925 42,351 $ 38,594 $ 392,509 ~ ,~~ ~2J The Accompanying Notes to Schedule of Expenditures of Federal Awards Are an Integral Part of This Report. 131 -- City of Cape Girardeau, Missouri NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS Year Ended June 30,2012 1. SUMMARY OF SIGNIFICANT ACCOlJNTING POLICIES A. ~ose of Schedule and Reporting Entity: The accompanying Schedule of Expenditures of Federal A wards has been prepared to comply with OMB Circular A-l33. This circular requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal financial assistance program as identified in the Catalog of Federal Domestic Assistance (CFDA) and identification of programs that have not been assigned a CFDA number as "Other Federal Assistance". The schedule includes all expenditures of federal awards administered by the City. B. Basis of Presentation: The Schedule is presented in accordance with OMB Circular A-133, which defines federal financial assistance " ...assistance that non-federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals." C. Basis of Accounting: The Schedule is presented on the modified accrual basis of accounting, which recognizes expenditures when liabilities for goods and services are incurred. This is the same basis of accounting presented in the financial statements. 132 City of Cape Girardeau, Missouri SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30. 2012 1. SUMMARY OF AUDITORS' RESULTS: Financial Statements Type of Auditors' report issued: Unqualified Internal control over financial reporting: • Material weaknesses identified? ____ yes no • Significant deficiencies identified that are not considered to be material weaknesses? ,_,____ yes ~_none reported Noncompliance material to financial statements noted? __ yes Federal Awards Internal control over major programs: • Material weaknesses identified? yes no • Significant deficiencies identified that are not considered to be material weaknesses? _._ yes ~~none reported Type of Auditors' report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of Circular A-I33? __ yes 133 Identification of major programs. CFDA Number Name of Federal Program 20.205 Highway Planning and Construction 66.458 Capitalization Grants for Clean Water State Revolving Funds 66.468 Capitalization Grants for Drinking Water State Revolving Funds Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee: .-lLyes __ no 2. FINANCIAL STATEMENT FINDINGS: No findings or questioned costs were noted that are required to be reported. 3. FEDERAL A WARD FINDINGS AND QUESTIONED COSTS: No findings or questioned costs were noted that are required to be reported. 134 City of Cape Girardeau. Missouri SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended June 30. 2012 09-1 Noncompliance with Section 67.080. RSMo, no expenditure of public mOl1les should be made unless it is authorized in the budget. Status: Implemented. 135