HomeMy WebLinkAbout2012-2013.AuditReportCITY OF CAPE GIRARDEAU, MISSOURI
Cape Girardeau, Missouri
For the Year Ended June 30, 2013
ANNUAL FINANCIAL REPORT
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Certified Public Accountants
CITY OF CAPE GIRARDEAU, MISSOURI
TABLE OF CONTENTS
FINANCIAL SECTION Page No.
INDEPENDENT AUDITORS' REPORT 1-3
REQUIRED SUPPLEMENTARY INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS 4-18
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS 19-20
STATEMENT OF ACTIVITIES 21-22
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
BALANCE SHEET 23-24
RECONCILIATION OF THE BALANCE SHEET OF 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
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
FUND NET ASSETS
STATEMENT OF CASH FLOWS
FIDUCIARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
28-29
30
31-32
33
NOTES TO BASIC FINANCIAL STATEMENTS
REQUIRED SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -GENERAL
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -AIRPORT
ST A TEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -PARK & RECREATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -CASINO REVENUE
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -TRANSPORTATION SALES TAX TRUST
FUND III
NOTES TO BUDGETARY COMPARISON SCHEDULES
SCHEDULE OF FUNDING PROGRESS
SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -CONVENTION AND TOURISM
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -DOWNTOWN BUSINESS DISTRICT
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -HEALTH
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL-MOTOR FUEL TAX
34-80
81
82
83
84
85
86-89
90
91
92
93
94
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -CAPITAL IMPROVEMENT SALES TAX -
WATER SYSTEM IMPROVEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -TRANSPORTATION SALES TAX
TRUST FUND
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -CAPITAL IMPROVEMENT SALES TAX -
SEWER SYSTEM IMPROVEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -TRANSPORTATION SALES TAX TRUST FUND II
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -FIRE SALES TAX
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -PUBLIC SAFETY TRUST
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -DEBT SERVICE
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -GENERAL CAPITAL IMPROVEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL-STREET IMPROVEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL-PARK IMPROVEMENTS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -COMMUNITY DEVELOPMENT BLOCK
GRANT PROJECTS
95
96
97
98
99
100
101
102
103
104
105
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGE IN FUND BALANCES -BUDGET AND
ACTUAL -TRANSPORTATION SALES TAX TRUST
FUND IV
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -PARK STORM WATER SALES TAX
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -PARK STORM WATER SALES TAX -CAPITAL
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -HOUSING DEVELOPMENT GRANTS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL - F AU GRANT PROJECTS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -SEWER
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL-WATER
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -SOLID WASTE
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -GOLF COURSE
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -SOFTBALL COMPLEX
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -INFORMATION TECHNOLOGY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -FLEET MANAGEMENT
106
107
108
109
110
III
112
113
114
115
116
117
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -FRINGE BENEFITS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -RISK MANAGEMENT
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -EQUIPMENT REPLACEMENT
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -BUDGET AND
ACTUAL -RIVERFRONT REGION ECONOMIC
DEVELOPMENT
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
118
119
120
121
REQUIRED BY OMB CIRCULAR A-133 122-123
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS 124-125
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 126-128
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 129
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 130-131
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 132
BEUSSINK, HEY, ROE & STRODER, L.L.C.
DEBRA BEUSSINK EUDY, CPA
EVERETT E. HEY, CPA
JERRY W. ROE, CPA
Certified Public Accountants
16 South Silver Springs Road
Cape Girardeau, Missouri 63703
Telephone (573) 334-7971
Facsimile (573) 334-8875
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of the City Council
City of Cape Girardeau, Missouri
Report on the Financial Statements
JEFFREY C. STRODER, CPA
SCOTT J. ROE, CPA
DAVID E. PRASANPHANICH, CPA
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, 2013, and the
related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accountant estimates made by
management, as well as evaluating the overall presentation of the financial statements.
1
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Cape Girardeau,
Missouri as of June 30, 2013, and the respective changes in financial position, and where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information on pages 4
through 18 and 81 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Cape Girardeau, Missouri's basic financial statements. The
budgetary comparison fund financial statements are presented for purposes of additional analysis
and are not a required part of the basic financial statements. The schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the basic financial statements.
The budgetary comparison 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 basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
2
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the budgetary comparison fund financial statements and the schedule
of expenditures of federal awards are fairly stated in all material respects in relation to the
financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 31,2013, 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 in considering the City's internal control over financial reporting and compliance.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
December 31, 2013
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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, 2013. The
intent of this discussion and analysis is to look at
the City's financial performance as a whole.
Readers should also review the basic financial
statements and related notes to those statements
to enhance their understanding of the City's
financial performance.
Financial Highlights
o The assets of the City of Cape Girardeau
exceeded its liabilities at the close of the most
recent fiscal year by $269,181,654 (net
assets). Of this amount, $37,201,495
(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
$28,722,617. Approximately 10.9 percent of
this total amount, $3,126,389 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 $3,126,389 or 11.9 percent of total
general fund expenditures and transfers.
o At the end of the current fiscal year, general
fund balance reserved for emergencies was
$4,182,401 or 15.9 percent of total general
fund expenditures and transfers.
o The City of Cape Girardeau's fixed assets
increased $28,771,808 during the year. Net
fixed asset additions of$40,783,635 were
made during the year. Depreciation for the
current fiscal year reduced fixed assets by
$12,011,827.
o The City of Cape Girardeau's total long-term
debt increased by $15,298,189 (27.3 percent)
during the current fiscal year. During the
current year the state revolving loan program
increased the amount of total direct loans
authorized for the City by $39,000,000 to a
total authorization of $70,000,000. These
4
loans are being used to fund costs related to
the current construction of a new wastewater
treatment plant. During the year the City
received disbursements totaling $18,297,714
from these loans. Also during the year the
City recognized debt totaling $4,655,012
related to the purchase of land from Southeast
Missouri State University that will be used
for the future development of a business park.
Regularly scheduled principal payments and
amortization of bond premiums / discounts
resulted in outstanding long-term debt being
reduced by $7,654,537.
Overview of the Financial Statements
This discussion and analysis are intended to
serve as an introduction to the City of Cape
Girardeau's basic financial statements.
The City of Cape Girardeau's basic financial
statements are comprised of three components:
1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial
statements. This report also contains other
supplementary information in addition to the
basic financial statements themselves.
Government-wide financial statements.
The government-wide financial statements are
designed to provide readers with a broad
overview of the City of Cape Girardeau's
finances, in a manner similar to a private-sector
business.
The statement of net assets presents information
on all the City's assets and liabilities, with the
difference between the two reported as net
assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether
the financial position of the City is improving or
deteriorating.
The statement of activities presents information
showing how the City'S net assets changed
during the most recent fiscal year. All changes
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
sports complexes operations. The government-
wide financial statements can be found on pages
19 to 22 of this report.
Fund financial statements. A fund is a
grouping of related accounts that is used to
maintain control over resources that have been
segregated for specific activities or objectives.
The City of Cape Girardeau, like other state and
local governments, uses fund accounting to
ensure and demonstrate compliance with
finance-related legal requirements. All of the
funds of the City can be divided into three
categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental Funds. Governmental funds are
used to account for essentially the same
functions reported as governmental activities in
the government-wide financial statements.
However, unlike the government-wide financial
statement, governmental fund financial
statements focus on near-term inflows and
outflows of spendable resources, as well as on
balances of spendable resources available at the
end of the fiscal year. Such information may be
useful in evaluating a government's near-term
financing requirements.
Because the focus of the governmental funds is
narrower than that of the government-wide
financial statements, it is useful to compare the
information presented for governmental funds
with similar information presented for
governmental activities in the government-wide
financial statements. By doing so, readers may
better understand the long-term impact of the
government's near term financing decisions.
Both the governmental fund balance sheet and
the governmental fund statement of revenues,
expenditures, and changes in fund balances
provide a reconciliation to facilitate this
comparison between governmental funds and
governmental activities.
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The City of Cape Girardeau maintains 34
individual governmental funds. Information is
presented separately in the governmental fund
balance sheet and in the governmental fund
statement of revenues, expenditures, and changes
in fund balances for the general, airport, parks
and recreation, transportation trust IV, and
casino revenue funds, which are considered, or
have been designated, to be major funds of the
City. Data from the other governmental funds
are combined into a single, aggregated
presentation.
The City of Cape Girardeau adopts annual
appropriated budgets for all its governmental
funds except the special revenue funds that are
foundations and the capital project funds which
have project length budgets. Budgetary
comparison statements have been provided for
all major governmental funds as part of the
financial statements to demonstrate compliance
with this budget. Budgetary comparison
statements for the remaining governmental funds
are present as supplemental information.
The basic governmental fund financial
statements can be found on pages 23 to 27 of this
report.
Proprietary funds. The City of Cape Girardeau
maintains two types of proprietary funds.
Enterprise funds are used to report the same
functions presented as business-type activities in
the government-wide financial statements. The
City used enterprise funds to account for its
sewer, water, and solid waste utilities and its golf
course and sports complexes 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 and
workmen's compensation programs, and its
internal equipment leasing program.
Proprietary funds provide the same type of
information as the government-wide financial
statements, only in more detail. The proprietary
fund financial statements provide separate
information for the sewer, water, and solid waste
utilities and golf course and sports complexes
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.
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 $269,181,654, an increase
of$18,190,743 (7.2%). The City's
$222,883,355 net investment in capital assets
(land, buildings, machinery, and equipment less
related outstanding debt used to acquire those
assets) makes up 82.8% of the City'S net assets.
This net investment increased $13,406,070
(6.4%) 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 (3.4
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 $610,404 (7.2%) more
than the previous year. The remaining balance of
net assets ($37,201,495) is unrestricted and may
be used to meet the City's ongoing obligations to
citizens and creditors. This reflects a $4,174,269
(12.6%) 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
2013 2012 2013 2012 2013 2012
Current and other assets 37,491,416 36,136,272 18,982,594 14,648,278 56,474,010 50,784,550
Capital assets 174,515,860 165,186,346 119,582,189 100,139,895 294,098,049 265,326,241
Total assets 212,007,276 201,322,618 138,564,783 114,788,173 350,572,059 316,110,791
Long-term liabilities outstanding 21,632,583 19,929,195 47,652,722 31,598,980 69,285,305 51,528,175
Other liabilities 5,901,000 6,811,221 6,204,100 6,780,483 12,105,100 13,591,704
Total liabilities 27,533,583 26,740,416 53,856,822 38,379,463 81,390,405 65,119,879
Net assets:
Invested in capital assets,
Net of related debt 152,915,480 145,265,494 69,967,875 64,211,791 222,883,355 209,477,285
Restricted 5,034,599 4,851,959 4,062,205 3,634,441 9,096,804 8,486,400
Unrestricted 26,523,614 24,464,748 10,677,881 8,562,478 37,201,495 33,027,226
Total net assets 184,4 73,693 174,582,201 84,707,961 76,408,710 269,181,654 250,990,911
6
CITY OF CAPE GIRARDEAU, MISSOURI
Governmental activities. Governmental activities increased the City of Cape Girardeau's net assets by $9,896,056
(compared to $20,408,995 in the previous fiscal year) thereby accounting for 54.4 percent of the total growth in the
net assets of the City. Increases in net investments in capital assets during the fiscal year accounted for $7,649,986
or 77.3 percent of this year's increase in its governmental activities net assets.
City of Cape Girardeau's Change in Net Assets
Governmental Business-type
activities activities Total
2013 2012 2013 2012 2013 2012
Revenues:
Program revenue:
Charges for service 5,000,474 5,057,123 18,495,391 18,829,983 23,495,865 23,887,106
Operating grants and
contributions 826,308 1,547,279 13,655 826,308 1,560,934
Capital grants and
contributions 4,794,060 1,332,549 2,071,345 498,384 6,865,405 1,830,933
General revenues:
Property taxes 2,029,237 2,008,140 2,029,237 2,008,140
Sales taxes 26,511,731 25,442,574 26,511,731 25,442,574
Other taxes 12,113,396 9,536,220 12,113,396 9,536,220
Other 494,725 743,454 275,420 325,377 770,145 1,068,831
Special item
Total revenues 51,769,931 45,667,339 20,842,156 19,667,399 72,612,087 65,334,738
Expenses:
Administrative 6,018,306 5,727,258 6,018,306 5,727,258
Capital Improvements 379,923 620,298 379,923 620,298
Development Services 3,058,240 3,104,617 3,058,240 3,104,617
Interest and other costs 713,682 1,440,995 713,682 1,440,995
Parks and Recreation 5,305,586 5,178,740 5,305,586 5,178,740
Public Safety 13,222,649 13,180,887 13,222,649 13,180,887
Public Works 7,441,934 7,155,731 7,441,934 7,155,731
Sewer 6,194,786 6,987,740 6,194,786 6,987,740
Water 6,905,559 6,937,308 6,905,559 6,937,308
Solid Waste 3,450,069 3,558,892 3,450,069 3,558,892
Golf Course 699,129 699,594 699,129 699,594
Softball Complex 1,026,917 879,164 1,026,917 879,164
Total expenses 36,140,320 36,408,526 18,276,460 19,062,698 54,416,780 55,471,224
Increase in net assets
before transfers 15,629,611 9,258,813 2,565,696 604,701 18,195,307 9,863,514
Transfers (5,733,555) 11,150,182 5,733,555 (11,150,182)
Increase in net assets 9,896,056 20,408,995 8,299,251 (10,545,481 ) 18,195,307 9,863,514
Net assets-beginning of year 174,582,201 154,239,911 76,408,710 86,931,232 250,990,911 241,171,143
Inclusion of component units
not previously reported
Prior period adjustments (4,564) (66,705) 22,959 (4,564) (43,746)
Net assets-end of year 184,473,693 174,582,201 84,707,961 76,408,710 269,181,654 250,990,911
7
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 were $56,649 (1.1 %) less the previous year. During the current year administrative revenues
included $90,522 in fees from an airshow at the Cape Girardeau Regional Airport. There was no airshow in the
previous year. During the previous year parks and recreation revenues included $29,591 for rental of Capaha
field by the local university. During the current year this revenue was recorded in the Sports Complex Fund.
The following are other significant changes in park and recreation service charge revenue during the current
year. Increases in revenues were seen in Osage Community Centre, Shawnee Park Community Center, and
Recreation divisions by $13,899 (7.0%), $15,346 (50.1%), and $13,974 (5.6%), respectively; while Central Pool
and Cape Splash showed decreases of$4,546 (3.8%) and $82,342 (13.5%). Other notable decreases included in
this year's revenue were: (1) weed and demolition assessments $18,184 (77.7%) included as public safety
revenue, (2) court costs and fines $37,515 (3.5%) included as public safety revenue, and (3) permits revenue
$24,540 (15.1 %) included in development services revenue.
• Operating grants and contributions were $720,970 (46.6%) less than the previous year. During the current year
the City received $172,190 in payments from various neighborhood improvement grants, $41,803 for
emergency shelter grants, $365,169 from various police operating grants, $36,082 in grants used establish bike
routes throughout the City, and $7,808 for a Citizen's Corp grant. During the previous year payments from
these sources were $517,584, $132,587, $417,474, $174,493 and $42,350, respectively. During the previous
year the City received $35,041 from a SAFER grant to cover the portion of the personnel costs of three
additional firefighters. No grant funds were received for these purposes during the current year.
• Capital grants and contributions increased $3,461,511 (259.8%) over the previous year. During the current year
the Isle of Capri donated public infrastructure to the City valued at $2,420,307 and the Greater Cape Girardeau
Benevolent Association made a $480,000 down payment on behalf of the City per an agreement with the
Southeast Missouri University Foundation for the purchase of247.43 acres along interstate I-55. This year
grants totaling $1,458,462 and $87,451 were received for the Lewis and Clark Parkway project and the Prestige
development, respectively. In the previous year grants totaling $625,276 and $279,435 were received for those
projects, respectively.
• Property tax revenue was $21,097 (l.1 %) more than the previous year. Assessed values finalized by the board
of equalization increased $2,783,287 (.6%) and $2,615,485 (4.3%) for real estate and personal property,
respectively. New construction of$4,287,580 and annexed property of$94,050 were included in real estate
increase. The City's general tax levy rate increased .3% during the current year.
• Sales tax revenue was 5l.2% of the total revenue during the current year vs. 55.7% in the previous year. This
year's revenue was $1,069,156 (4.2%) more than the previous year. From fiscal year ending June 30, 2009
through fiscal year ending June 30, 2012 sale tax revenue, adjusted for new taxes, had annual growth rates of
(1.6%), 1.6%, 2.0% and 4.9%, respectively.
• Other taxes increased $2,577,175 (27.0%) from the previous year. Franchise taxes, motor fuel taxes,
convention and tourism taxes, business licenses, liquor licenses, and cigarette taxes, grew $262,960 (5.8%),
$623 (O.l%), $128,040 (6.8%), $77,739 (5.9%), $4,667 (7.2%), and $9,727 (5.7%), respectively. During the
previous 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 during the current
year. During the current year the Isle of Capri casino opened. The City received $2,343,419 in gross receipt
taxes from the casino during the current year.
8
CITY OF CAPE GIRARDEAU, MISSOURI
Revenues from governmental activities (continued)
• Ameren paid 70.6% of the total franchise tax collected during the year based on its electricity and natural gas
revenues. During the current year Ameren paid $281,972 (9.2%) more than the previous year. Payments
received on electricity and natural gas sales increased $202,275 (8.4%) and $79,697 (12.0%), respectively, from
the previous year. Average monthly electric and natural gas rates were 6.3% more and 4.0% less, respectively,
during the current year when compared to the previous year. An extremely mild winter had a negative impact
on both the natural gas and electricity receipts during the previous year.
• During the current year the City received payments in lieu of franchise taxes from its water and sewer funds
totaling $715,656. This was $7,828 (1.1%) less than the previous year. There were no sewer or water rate
increases during the current year.
• Franchise tax paid during the current year by the City's telecommunication and cable TV service providers
decreased $30,479 (9.7%) and increased $19,295 (5.1 %), respectively, from the previous year. During the
previous year the City received $27,500 in back taxes from Sprint.
• The increase in the convention and tourism taxes was comprised of$71,400 (5.6%) and $56,640 (9.2%)
increases in restaurant and hotel/motel taxes, respectively, from the previous year.
• Other revenue declined $245,728 (33.5%) from the previous year to $494,725. Investment earnings, which
accounted for 72.7% of other revenue, decreased $210,543 (36.9%).
Expenses from governmental activities
• Administrative expenses totaled $6,018,306 this year which was $291,049 (5.1 %) 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 $122,955 (9.4%) to
$1,431,139 this year.
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 $158,920 on such projects, an increase of $30,295
(23.6%) over the previous year. At the end of the current year there was still $39,378 available for expenditure
on future tourism and economic development related projects.
The current year also includes the following significant changes in administrative costs: (1) amounts spent on
salaries and benefits increased 123,378 (6.4%) over the previous year (2) legal fees related to the eviction ofa
tenant from its manufacturing facility at the airport decreased by $68,793 to $3,561 (3) an airshow was held in
fiscal year 2013 which added $109,148 in expenses.
• Capital improvements expenses totaled $379,923 this year which was $240,375 (38.8%) less 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).
9
CITY OF CAPE GIRARDEAU, MISSOURI
Expenses from governmental activities (continued)
• Development services expenses totaled $3,058,240 this year which was $46,377 (1.5%) less than the previous
year. This year's expenses included $1,692,576 for employee salaries and benefits which was $133,214 (8.5%)
more than the previous year. During the current year the City spent $330,281 on various economic development
projects as required by various development agreements. This was $162,453 (96.8%) more than the previous
year. A new development agreement associated with the location of a new Menards store within the City
resulted in economic development payments of $159, 1 06 during the year. During the current year the City spent
$253,248 on a downtown way-finding signage project compared to $12,051 spent on this project during the
previous year. The following amounts were spent on grant programs during the current year: (1) $89,152 for the
completion of the renovation of the Prestige Building (2) $262,942 for various neighborhood improvement and
housing projects (3) $21,848 for emergency shelter and (4) $36,488 for City bike routes. During the previous
year the City spent $279,435, $385,234 , $134,821, and $187,536, respectively, on these grant programs.
• Interest and other costs totaled $713,682 this year which was $727,313 (50.5%) less than the previous year.
During the previous year the City used proceeds from the issuance of revenue bonds by the Water Fund to call
$14,050,000 of the 1998 water revenue bonds that had originally been issued through the state revolving loan
program and was being paid out of the Capital Improvement Sale Tax -Water System Improvements Special
Revenue Fund.
• Parks and recreation expenses totaled $5,305,586 this year which was $126,846 (2.4%) more than the previous
year. This year's financial statements included depreciation costs of$957,067 and electricity costs of$280,359
which were $20,291 (2.2%) and $19,739 (7.6%) more, respectively than the previous year. The current year
also includes $74,700 for a major brick renovation project at City Hall
• Public safety expenses totaled $13,222,649 this year which was $41,762 (0.3%) more than the previous year.
Included in this year's expenses is depreciation expense totaling $677,816 which was $5,625 (.8%) more than
the previous year, personnel costs totaling $10,954,750 which were $313,576 (3.0%) more than the previous
year, and operating expenses totaling $1,590,083 which was $277,439 (14.9%) less than the previous year.
• Public works expenses totaled $7,441,934 this year which was $286,203 (4.0%) more than the previous year.
Included in this year's expenses is depreciation expense totaling $5,018,369 which was $207,687 (4.3%) more
than the previous year, personnel costs totaling $1,114,469 which was $39,619 (3.7%) more than the previous
year, and electricity costs totaling $467,267 which was $40,638 (8.7%) more than the previous year.
Softball Complex
Golf Course
Solid Waste
Sewer
Water
Public Works
Public Safety
Parks & Recreation
Development Serv
Adm inistrati ve
~
I_Expense I !!!!PI cRevenue
~,
~
1,500,000 3,000,000 4,500,000 6,000,000 7,500,000 9,000,000 10,500,00012,000,00013,500,000
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 grants
Other
1.0%
Sales
taxes
51.1%
Service 1.6%
9.7%
Capital
grants
9.3%
Property
taxes
3.9%
Other
taxes
23.4%
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 (51.1 %),
other taxes (23.4%) and charges for services
(9.7%).
The City's general sales tax represents 36.7
percent of the total sales tax revenue and 45.5
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 52.8% and 55.4%
of the other tax and service charge revenue
respectively. This represents 29.9% and 13.0%
of the total general fund revenues respectively.
Business-type activities
Net assets of the City increased by $8,299,251 as a
result of its business-type activities during the
current year. During the previous year business-
type activities decreased the City's net assets by
$10,545,481. Business-type activities before
transfers increased the City's net assets by
$2,565,696 and $604,701 during the current and
previous years, respectively.
During the current year there were net transfers
from the governmental activities to business-type
activities of$5,733,555. In the previous year there
1 1
were net transfers from business-type activities to
governmental activities of $11,150,182.
Transfers of sales tax revenue for bond payments
totaling $3,579,595 and operating subsidy transfers
from the general and parks / storm water sales tax funds
totaling $986,808 were made during the current year.
Last year these transfers totaled $1,624,914 and
$853,864, respectively. During the current year capital
improvements totaling $1,145,312 were transferred to
the water, sewer, golf and softball complex funds from
capital project funds. Last year these transfers were
$2,599,893.
The net change in assets before transfers and general
revenues in the sewer, water, solid waste, golf, and
softball operations totaled $3,242,453, $26,233,
(113,330), $(221,894), and $(643,186), respectively,
this year. This compares to $873,466, $402,135,
(193,009), $(187,666), and $(615,602), respectively,
in the previous year.
Other
1.3%
Revenues for business-type activiies
Charge
for
Service
88.7%
Financial Analysis of the City's Funds
As noted earlier, the City of Cape Girardeau uses
fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds. The focus of the City's
governmental funds is to provide information on
near-term inflows, outflows, and balances of
spendable resources. Such information is useful in
assessing the City's financing requirements. In
particular, unassigned fund balance may serve as a
useful measure of the City's net resources available
for spending at the end of a fiscal year.
As of June 30, 2013, the City's governmental funds
reported combined ending fund balances of
$28,722,617, an increase of$I,379,177 (5.0%) from
the prior year. Unassigned fund balances, which are
available for spending at the City's discretion,
account for $3,126,389 (10.9%) of the total fund
balances.
CITY OF CAPE GIRARDEAU, MISSOURI
The remainder of the fund balances are classified
as nonspendable, restricted, committed, 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, 2013: (1) $906,650 is classified as
nonspendable because it is either (a) not in
spendable form or (b) legally or contractually
required to be maintained intact (2) $20,789,599
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) $1,814,241 is classified as
committed because it can only be used for
specific purposes pursuant to constraints
imposed by formal action of the City Council 4)
$2,085,738 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,
unassigned fund balance of the general fund was
$3,126,389 while total fund balance was
$8,261,313. 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 1 1.9 percent of total
general fund expenditures including transfers.
However, included in the reserved fund balance
is $4,182,401, 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 $40,769
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$114,822. 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, 2013 had a surplus of
revenues over expenditures of $168, 118. The
actual general fund results increased fund
12
balances by $114,822. Significant deviations from
this budget are detailed below:
o Sales tax revenue was $394,574 (4.2%)
more than the previous year, which was
$198,415 (2.1 %) more than projected for the
adopted budget. The adopted budget projected
revenues that were 1.5% above the projected
fiscal year ending June 30, 2012 revenues.
Actual revenue for fiscal year ending June 30,
2012 increased 4.84% from than the previous
year while the budget had assumed it would
increase 5.41 %.
o Franchise tax revenue was $215,377
(4.7%) more than projected for the adopted
budget. Franchise taxes from electric utilities,
telecommunications, cable TV, and the City's
water and sewer service exceeded their budgets
by $200,076 (8.3%), $56,868 (25.1%), $18,118
(4.8%) and $5,656 (0.8%), respectively.
Franchise tax from natural gas utilities were
$65,341 (8.1 %) below their projected budget.
o During the current year Ameren paid
$281,972 (9.2%) more franchise taxes than the
previous year. Payments received on electricity
and natural gas sales increased $202,275 (8.4%)
and $79,697 (12.0%), respectively, from the
previous year. Average monthly electric and
natural gas rates were 6.3% more and 4.0%
less, respectively, during the current year when
compared to the previous year. An extremely
mild winter had a negative impact on both the
natural gas and electricity receipts during the
previous year. Projections used in the current
year's budget had assumed electric and natural
gas usage equal to usage from calendar year
2011 and rates that were in effect on February
1,2012.
o During the current year the City received
payments in lieu of franchise taxes from its
water and sewer funds totaling $715,656. This
was $7,828 (l.I%) less than the previous year.
The amount of payments in lieu of franchise
taxes projected for the current year's budget
had assumed no sewer or water rate increases
and there were none during the current year.
CITY OF CAPE GIRARDEAU, MISSOURI
o Franchise tax paid during the current
year by the City's telecommunication
service providers decreased $30,479 (9.7%)
from the previous year. During the
previous year the City received $27,500 in
back taxes from Sprint. The amount of
projected franchise tax from
telecommunication providers used in the
current year's budget was significantly
underestimated.
o Franchise tax paid during the current
year by the City's cable TV service
provider increased $19,295 (5.1 %) from
the previous year. The amount of projected
franchise tax from the City's cable TV
service provider used in the current year's
budget was based on revenue received
during the quarter ended December 31,
2011.
o Property tax revenue increased
$12,862 (0.8%) over the previous year and
was $16,945 (1.0%) more than the
projected budget. The previous year's
revenue included $10,908 of protested
taxes from previous years. Assessed values
finalized by the board of equalization
increased $2,783,287 (.6%) and $2,615,485
(4.3%) for real estate and personal
property, respectively. New construction of
$4,287,580 and annexed property of
$94,050 were included in real estate
increase. The adopted budget for the fiscal
year ending June 30, 2013 had assumed
1.0% and 0.0% assessed value growth for
real estate and personal property,
respectively. The City's general tax levy
rate increased .3% during the current year.
No levy increases had been projected in the
current year's budget.
o Business license revenue increased
$77,739 (5.9%) over the previous year and
exceeded the proj ected budget by $119,739
(9.4%). The adopted budget projected
revenues that were 1.5% above the
projected adjusted fiscal year ending June
30, 2012 revenues. Actual adjusted revenue
for fiscal year ending June 30, 2012 was
$61,001 (4.9%) more than had been
assumed by the budget projections.
13
o Other license and permit revenue was
$24,899 (9.8%) higher this year than the
previous year and was $59,034 (26.8%) more
than projected for the budget. This year's
results included $42,500 in revenue from a
residential rental license that was implemented
during the year.
o Intergovernmental revenue exceeded
revenue projected for the budget by $203,492
(48.3%). This year's intergovernmental revenue
included $129,487 in revenues from various
public safety capital grants, $29,467 grant to
establish bicycle routes throughout the city, and
$41,803 for an emergency shelter grant. Only
$3,000 of these revenues had been projected in
the current year's budget.
o Service charges were $38,383 (3.3%) less
than the previous year but were $53,413 (4.9%)
more than projected in the budget. Internal costs
charged to various parks capital projects
totaling $104,171 had not been anticipated in
the original budget.
o Fines and forfeits revenue was $29,027
(3.0%) less than the previous year and was
$44,226 (5.0%) more than projected in the
budget. The adopted budget for fiscal year
ending June 30, 2013 had assumed revenue
levels equal to the March 2012 projected
revenue for fiscal year ending June 30, 2012.
Actual revenues for fiscal year ending June 30,
2012 exceeded these projections by $73,252
(8.2%).
o During the current fiscal year total
expenditures were $131,786 (0.6%) less than
the original budget. Operating expenditures and
debt service expenditures were $154,666
(0.7%) and $2,221 (1.4%) less than their
original budgets, respectively. Actual capital
expenditures exceeded the original budget by
$25,101 (34.3%).
o Transfers to other funds for operating
subsidies were $170,588 (4.1%) more than
original budget and transfers for capital
expenditures exceeded their original budgets by
$980,891 (1,196.8%).
CITY OF CAPE GIRARDEAU, MISSOURI
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 $1,355,644 (5.3%) more
than the original adopted budget. The changes
that were appropriated by the City Council can
be summarized as follows:
Administrative -$65,700.00 for costs related to
additional overtime and other costs associated
with the upgrade of finance and payroll software;
Council room video cameras and presentation
equipment; computer replacement for public
service channel; outside legal advice; employee
search costs; legal subscription services; and
Energy Efficiency Block grant expenditures.
Development Services -$56,250.00 for costs
related to grant funded expenditures to establish
bike routes throughout the city, community
assistance grant expenditures, AutoCad
upgrades, and other economic development
costs.
Public Safety -$194,537.00 for costs related to
overtime; temporary full-time employee;
prisoner food; police chief search; various public
safety operating grants; upgrading Municipal
court software; payment of an insurance
deductible; repair of door at fire station #2;
replacement of fire station # 1 HV AC system;
and various other public safety operating and
equipment expenditures.
Parks and Recreation -$54,882.00 for costs
related to repairs made at City Hall and the
Common Pleas Court House.
14
Public Works -$46,500.00 for costs related to
relocation of a street light electrical line and
additional street light utility costs as a result of a rate
increase.
General Fund Transfer to Airport Fund -
$33,500.00 to cover projected operating shortfall
from air show and costs related to repair of damaged
generator and self-service fuel tank modification.
General Fund to Parks and Recreation Fund -
$3,800.00 to cover costs of repair of vandalism to
Arena roof and replacement of motor for
handicapped entrance at the Osage Centre.
General Fund to General Capital Improvement
Fund -$120,000.00 to cover costs of repairs related
to the Nash Road Railroad Crossing.
General Fund to Public Safety Trust Fund -
$63,000.00 to cover transfer of additional sales tax
revenue.
General Fund to Housing Development Grants
Fund -$35,000.00 to cover costs not reimbursed
by grants.
General Fund to Information Technology Fund -
$682,475.00 to cover costs related to upgrading to
Microsoft 2010 and replacing the City'S ERP
software.
Excess general fund revenues and unrestricted fund
balances were used to fund all appropriations that did
not have an identified funding source.
During the year departments may transfer budget
appropriations between various expense types within
their department.
Capital Assets and Debt Administration
Capital Assets. The City of Cape Girardeau's
investment in capital assets for its governmental and
business-type activities as of June, amounts to
$294,098,049 (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 OF CAPE GIRARDEAU, MISSOURI
City Capital Assets
45.3%
42.3%
Oland
.SuildingslEquipment
01 nfrastructure
OConstruction in
Progress
Major capital asset events during the current
fiscal year included the following:
o Construction costs totaling $5,857,328 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.
o Land purchased from Southeast Missouri
State University costing $5,141,796 (NPV
of the transaction) that will be used for the
future development of a business park.
o $1,777,008 in construction costs were
incurred for a street project that is being
partially funded by the Missouri
Department of Transportation.
o Construction costs totaling $2,562,196 on
various water system projects were incurred
this year. Major water system improvements
included the activation of a system to get the
new wells and pumps to send water into new
transmission mains, the removal of the water
storage tank at Plant #2, the design of a new
elevated water tank, the addition of water main
extensions and the continuation of the two-
inch water main replacement program.
o Costs totaling $19,031,306 related to the new
Wastewater Treatment Plant were incurred this
year.
o Costs totaling $49,960 were incurred for
sidewalk construction for the safe routes to
school program. These costs were almost
entirely funded by the Department of
Transportation.
o Department of Transportation funds were used
to partially fund the $79,418 spent to expand
the City's trail system.
o In April 2008 voters approved a liz cent sales
tax to pay for storm water and park
improvement projects. $291, 103 and
$230,312 were spent respectively during the
current year on these projects.
o Sewer projects funded by sewer revenue
amounted to $7,793 in capital expenditures
during the current year.
Additional information about the City's capital assets
can be found in note D to the financial statements.
City of Cape Girardeau's Capital Assets
(net of depreciation)
Governmental Business-type
Activity I\ctivitles Total
2013 2012 2013 2012 2013 2012
Land 10.068.115 4926.320 647.165 647.165 10,715,280 5,573.485
Buildings and
system
improvements 21,772,194 22,754492 2,313.739 2.495,635 24,085933 25.250,127
Improvements
other than
buildings 9,839,627 10,363.902 89.344324 89417174 99,183,951 99,781,076
Equipment 5.881,752 6,019842 4.150601 4200,680 10,032353 10220522
Infrastructure 124.273538 1113,903, 124,273,538 11B.Q03,
Construction In
progress 2680,634 2,218,015 23,126360 3379,2111 25,806994 5.597256
Total 114,515,860 186,346 119,582,1d9 100.139,8% 294.098049 265326241
15
CITY OF CAPE GIRARDEAU, MISSOURI
Long-term debt.
At the end of the fiscal year, the City of Cape
Girardeau had total debt outstanding of
$71,280,543. Bonded debt outstanding totaling
$49,950,066 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 increased by $15,298,189
(27.3%) during the current year.
During the current year the state revolving loan
program increased the amount of total direct
loans authorized for the City by $39,000,000 to a
total authorization of $70,000,000. These loans
are being used to fund costs related to the current
construction of a new wastewater treatment
plant. During the year the City received
disbursements totaling $18,297,714 from these
loans.
Additionally, during the current year the City of Cape
Girardeau agreed to purchase land from Southeast
Missouri State University that will be used for the
future development of a business park. Under terms
of the agreement the City paid a $480,000 down
payment and agreed to make annual payments of
$460,000 over the next 12 years. The City recognized
new debt totaling $4,655,012 on its statements as a
result of this purchase (NPV of future payments with
a 2.77% discount rate).
Regularly scheduled principal payments and
amortization of bond premiums / discounts resulted
in outstanding long-term debt being reduced by
$7,654,537.
More information about the City's outstanding debt
can be found in note E to the financial statements.
City of Cape Girardeau's Outstanding Debt
Governmental Business-type
Activit~ Activities Total
2013 2012 2013 2012 2013 2012
Notes payable 5.154,911 647,528 750.101 810.109 5905.012 1.457.637
Special
obligation
bonds 3,133.845 3989.317 874 795 1,01753"1 4,008,640 5006.854
Revenue bonds 894.800 937,600 48,055.266 34.208439 48.950,066 35.146,039
Certificates of
participation
General
obligation
bonds
Leasehold
revenue bonds 12,416,825 14371 824 12416.825 14.371.824
21,600,381 19,946,269 49,680,162 36036,085 71.280,543 55,982354
16
CITY OF CAPE GIRARDEAU, MISSOURI
Economic Factors and the Next Year's Budget
Residential development remained steady during
the past year. Values of residential permits
issued during the year were at approximately the
same level as the previous year's values.
Commercial development increased significantly
during the current. Values of commercial permits
issued during the year were 41.7% higher than
the previous year. Commercial development was
strongest it's been since 2004.
Commercial and residential permits valued at
$54.3 million and $16.2 million were issued this
year. Commercial and residential permits valued
at $38.3 million and $16.1 million were issued in
the previous year. In the current year 49 single
family residence and 11 two family residence
building permits totaling $9,844,705 and
$2,310,000, respectively, were issued. In the
previous year 52 single family residence and 14
two family residence building permits totaling
$9,599,218 and $2,567,000, respectively, were
issued.
Local employment continues to be stronger than
national employment. The Cape Girardeau
County unadjusted unemployment rate was only
5.7% in October 2013. Statewide and national
unadjusted unemployment rates were 5.7% and
7.0%, respectively, for this month. The
unadjusted unemployment rates were 5.7%,
6.6% and 7.5% 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 began
operation, were under construction, or were
announced during the past year. In June 2013
Academy Sports opened a 75,000 square foot
facility in the city. This store is expected to
employ approximately 75 people. A new CVS
Pharmacy is currently under construction and a
January 2014 opening date is anticipated.
In December 2013 Walmart announced its plans
to construct a Walmart Neighborhood Market
store at the site of the former Plaza Galleria
building. The facility is anticipated to be
approximately 25% the size of the local Walmart
Supercenter.
In October 2012 the Isle of Capri opened its
$125 million casino development in the
17
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.
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 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 4.2% while
inflation grew at 1.7%. In the previous year sales tax
revenue from the general sales tax increased 4.8%
while inflation grew at 3.1 %.
The City's restaurant gross receipt tax and
hotel/motel gross receipt tax increased 5.6% and
9.2%, respectively, during the current year. In the
previous year they increased 5.6% and 9.4%,
respecti ve ly.
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.
CITY OF CAPE GIRARDEAU, MISSOURI
FY10 FY11 FY12 FY13
Cape Girardeau
Carbondale
Jackson
Perryville
Sikeston
41."i'% 41 9'/':) 424('.<, 44 o (/c)
279lyo 2T9%, 274% 26.7%
9.5°;() 9.6% 9.6'10 93°/.,
7A°;() 72% 72(% 7.2%
13.5% 13.4°;(. 13.4'% 12.8%
100.0% 100.0% 1000(% 1000'>;')
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
recapturing its share of the local market is
continuing.
Local Economic Development.
In the previous 9 years the City has entered into
5 long-term development agreements to
reimburse companies for the public
improvements associated with 5 retail
development projects from the additional sales
tax generated from those projects. The
agreements have resulted in the addition of three
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 $330,281 during the current
year. Payments totaling $1,469,523 have been
made since the beginning of these agreements.
During the year the City spent $66,647 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.
In February, 2013, the City agreed to purchase
247.43 acres along interstate I-55 around the new
LaSalle interchange for $6,000,000 under terms
agreed to with the Southeast Missouri University
Foundation. Per the tenns, a $480,000 down
payment was made by the Greater Cape
18
Girardeau Benevolent Association on behalf of the
City and the City will make 12 annual future
payments of $460,000. 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 was awarded a grant up to $700,000 in October,
2013 to provide water, sewer, and road improvements
needed to bring a new distribution center to this site.
The company has agreed to invest at least $2.1
million in the center and produce at least 35 new full-
time jobs within two years as a result of this grant.
Budget for fiscal year ending June 30, 2013 and
financial condition
The adopted general fund budget for the fiscal year
ending June 30, 2014, was projected to produce a
$148,526 surplus.
The adopted general fund budget included a 3% 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 $43,720 in capital costs.
The City's current financial position had improved
substantially during the past four 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 four 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
o 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 infonnation provided in
this report or requests for additional financial
infonnation should be addressed to the Finance
Director, City of Cape Girardeau, PO Box 617,
Cape Girardeau, MO 63702-0617.
BASIC FINANCIAL STATEMENTS
City of Cape Girardeau
Statement of Net Assets
For the Year Ended June 30, 2013
Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 89,906.31 $ 1,602.08 $ 91,508.39
Investments 30,594,367.14 11,983,080.75 42,577,447.89
Taxes receivable 4,457,224.25 4,457,224.25
Utility charges receivable 2,542,045.14 2,542,045.14
Special assessments receivable 263,722.86 38,631.79 302,354.65
Interest receivable 48,686.90 18,055.34 66,742.24
Other receivables 357,141.49 23,818.97 380,960.46
Notes receivable 216,225.35 216,225.35
Motor fuel receivable 108,973.29 108,973.29
Grants receivable 348,476.76 348,476.76
Internal balances 191,455.38 (191,455.38)
\0 Inventory 277,126.35 696,323.40 973,449.75
Prepaid items 538,109.85 78,890.81 617,000.66
Restricted cash and cash equivalents 3,009,758.62 3,009,758.62
Restricted investments 781,842.78 781,842.78
Land 10,068,114.78 647,165.04 10,715,279.82
Buildings 21,772,194.52 2,313,738.67 24,085,933.19
Other improvements 9,839,626.61 89,344,323.91 99,183,950.52
Equipment 5,881,751.75 4,150,601.28 10,032,353.03
Infrastructure 124,273,537.85 124,273,537.85
Construction in process 2,680,634.99 23,126,360.25 25,806,995.24
Total assets $ 212,007,276.43 $ 138,564,783.45 $ 350,572,059.88
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Net Assets
For the Year Ended June 30,2013
Primary Government
Governmental Business-type
Activities Activities Total
LIABILITIES
Accounts payable $ 1,030,753.01 $ 582,889.28 $ 1,613,642.29
Salaries and benefits payable 753,470.38 148,839.88 902,310.26
Interest payable 136,331.27 662,722.45 799,053.72
Other liabilities 306,995.53 2,369,475.16 2,676,470.69
Estimated claims 452,000.00 452,000.00
Due to other governments 1,206.64 61,138.63 62,345.27
Unearned revenues 56,966.83 56,966.83
Deferred revenues
Estimated landfill post closure costs 35,750.00 35,750.00
Current portion long-term debt:
Notes payable 414,476.28 30,004.00 444,480.28
N Revenue bonds payable 43,800.00 2,163,281.00 2,207,081.00
0 Leasehold revenue bonds payable 2,015,000.00 2,015,000.00
Special obligation bonds payable 690,000.00 150,000.00 840,000.00
Long-term debt net of current portion:
Notes payable 4,740,435.08 720,096.88 5,460,531.96
Revenue bonds payable 851,000.00 _ 45,891,985.02 46,742,985.02
Leasehold revenue bonds payable 10,401,824.63 10,401,824.63
Special obligation bonds payable 2,443,844.51 724,795.15 3,168,639.66
Compensated absences payable 890,576.86 119,325.31 1,009,902.17
Net OPEB Obligaton 2,304,902.00 196,520.00 2,501,422.00
Total liabilities 27,533,583.02 53,856,822.76 81,390,405.78
NET ASSETS
Invested in capital assets, net of related debt 152,915,480.00 69,967,874.54 222,883,354.54
Restricted for debt service 24,307.56 24,307.56
Restricted for depreciation and replacement 277,000.00 277,000.00
Restricted for emergency fund 4,761,789.00 3,785,205.00 8,546,994.00
Restricted for Mausoleum 93,656.03 93,656.03
Restricted for River Campus Project 131,728.89 131,728.89
Restricted for Local Access Channel
Restricted for Operation and Maintenance 23,117.66 23,117.66
Unrestricted 26,523,614.25 10,677,661.15 37,201,495.40
Total net assets $ 164,473,693.41 $ 64,707,960.69 $ 269,161,654.10
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Activities
For the Year Ended June 30, 2013
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Primary Government
Capital Grants
Charges for Operating Grants and Governmental Business-type
Functions/Programs Expenses Services and Contributions Contributions Activities Activities Total
Primary government:
Governmental activities:
Administrative $ 6,018,306.26 $ 1,554,611.40 $ 167,000.00 $ $ (4,296,694.86) $ $ (4,296,694.86)
Capital Improvements 379,922.93 2,150,676.26 1,770,753.33 1,770,753.33
Development Services 3,058,239.68 720,028.41 250,074.38 (2,088,136.89) (2,088,136.89)
Interest and other costs 713,682.15 (713,682.15) (713,682.15)
Parks and Recreation 5,305,585.78 1,523,939.95 4,418.56 (3,777,227.27) (3,777,227.27)
Public Safety 13,222,648.70 1,068,439.73 372,976.99 141,849.50 (11,639,382.48) (11,639,382.48)
Public Works 7,441,934.34 133,454.65 31,838.48 2,501,534.36 (4,775,106.85) (4,775,106.85)
Total governmental activities _ 3~0,319.8£ _5,OOO,474J4 _JL26,3g§.41_ 4,7~4,060.12 (2~519.177.17) (25,519,477.17)
N
Business-type Activities:
Golf Course 699,129.34 477,235.33 (221,894.01 ) (221,894.01 )
Sewer 6,194,785.59 7,582,866.76 1,854,371.45 3,242,452.62 3,242,452.62
Softball Complex 1,026,917.22 383,731.43 (643,185.79) (643,185.79)
Solid Waste 3,450,068.68 3,336,739.06 (113,329.62) (113,329.62)
Water 6,905,558.71 6,714,817.98 216,973.83 26,233.10 26,233.10
Total business-type activities 1812761459.54 1814951390.56 2 1°71 1345.28 2,290,276.30 2,290,276.30
Total primary government $~~1_6,779.~ _ J~3,495,864.70_ ~6,308~ $ 6,865,405.40 (25,519,477.17) 2,290,276.30 (23,229,200.87)
~P.P. A~~omn~nvinn Notp.!,: to B~!':ir. Finandal Statements
N
N
Functions/Programs Expenses
Primary government:
Governmental activities:
City of Cape Girardeau
Statement of Activities
For the Year Ended June 30, 2013
Program Revenues
Charges for
Services
General revenues:
Property taxes
Sales taxes
Franchise taxes
Motor fuel taxes
Operating Grants
and Contributions
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
Net assets -beginning
Prior period adjustment
Net assets -ending
Capital Grants
and
Contributions
See Accomoanvina Notes to Basic Financial Statements.
$
Governmental
Activities
2,029,237.16
26,511,731.37
4,760,377.46
1,354,710.72
2,014,814.81
1,390,739.22
69,631.88
2,523,120.43
55,325.10
359,660.40
79,739.73
{5?33,555.28}
35,415,533.00
9,896,055.83
174,582,201.44
(4,563.86}
184,473,693.41
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Business-type
Activities
223,978.58
51,440.75
5,733,555.28
6,008,974.61
8,299,250.91
76,408,709.78
$ 84,707,960.69
Total
2,029,237.16
26,511,731.37
4,760,377.46
1,354,710.72
2,014,814.81
1,390,739.22
69,631.88
2,523,120.43
55,325.10
583,638.98
131,180.48
41,424,507.61
18,195,306.74
250,990,911.22
(4,563.86)
$ 269,181,654.10
FUND FINANCIAL STATEMENTS
City of Cape Girardeau
Balance Sheet
Governmental Funds
For the Year Ended June 30, 2013
Transportation Other Total
Park and Sales Tax Casino Governmental Governmental
General ~ort Recreation Trust Fund IV Revenue Fund Funds Funds
ASSETS
Current assets:
Cash and cash equivalents $ 9,525.17 $ 6.26 $ 83.37 $ 257.78 $ 248.78 $ 63,657.14 $ 73,778.50
Investments 5,078,126.95 46,809.93 623,211.89 1,926,945.88 1,859,658.70 14,775,565.19 24,310,318.54
Receivables-
Real estate taxes, net 35,169.49 13,560.54 48,730.03
Personal property taxes, net 9,475.79 1,775.91 11,251.70
Sales tax 858,678.33 420,339.91 1,068,230.54 2,347,248.78
Franchise taxes 1,868,525.16 1,868,525.16
Hotel & motel tax 69,285.58 69,285.58
Restaurant tax 112,183.00 112,183.00
Special assessments 98,606.99 165,115.87 263,722.86
Other 20,447.88 172,874.85 31,526.57 2,020.64 226,869.94
Interest 7,964.73 71.66 390.92 2,538.58 2,828.44 26,210.13 40,004.46
N Motor fuel tax 84,037.40 84,037.40
v.) Vehicle license fees 8,595.02 8,595.02
Motor vehicle sales tax 16,340.87 16,340.87
Grants 152,830.92 62,721.00 132,924.84 348,476.76
Other funds 108,086.91 108,086.91
Inventory 189.00 82,347.00 8,635.61 7,775.65 98,947.26
Prepaid items 102,707.03 15,850.00 3,842.68 13,761.04 136,160.75
Total Current assets: 8,350,334.35 380,680.70 667,691.04 2,350,082.15 1,862,735.92 16,561,039.36 30,172,563.52
Noncurrent assets:
Advances to other funds 771,090.78 771,090.78
Total Noncurrent assets: 771,090.78 771,090.78
Total assets $ 9,121,425.13 $ 380,680.70 $ 667,691.04 $ 2,350,082.15 $ 1,862,735.92 $ 16,561,039.36 $ 30,943,654.30
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Balance Sheet
Governmental Funds
For the Year Ended June 30, 2013
Other Total
Park and Trans Sales Tax Casino Governmental Governmental
General ~ort Recreation Trust Fund IV Revenue Fund Funds Funds
LIABILITIES AND FUND
BALANCES
Current liabilities:
Accounts payable $ 219,269.84 $ 144,285.20 $ 89,068.29 $ 20,618.70 $ 21,790.96 $ 458,099.92 $ 953,132.91
Salaries and benefits payable 336,019.05 18,224.17 111,263.55 28,515.74 494,022.51
Other liabilities 132,853.90 54,026.28 24,527.69 48,993.39 26,704.35 19,889.92 306,995.53
Due to other governments 1,206.64 1,206.64
Payable to other funds 2,692.40 68,219.23 70,911.63
Unearned revenues 14,250.00 1,694.00 41,022.83 56,966.83
Deferred revenues 157,719.55 180,081.60 337,801.15
Total Current liabilities: 860,112.34 220,922.05 265,882.36 69,612.09 48,495.31 756,013.05 2,221,037.20
Non current liabilities:
N Advances from other funds
.+:.
Total Non current liabilities:
Total liabilities 860,112.34 220,922.05 265,882.36 69,612.09 48,495.31 756,013.05 2,221,037.20
Fund balances:
Nonspendable 873,797.81 15,850.00 3,842.68 13,160.04 906,650.53
Restricted 4,182,401.03 2,280,470.06 14,326,727.47 20,789,598.56
Committed 1,814,240.61 1,814,240.61
Assigned 78,724.95 143,908.65 397,966.00 1,465,138.80 2,085,738.40
Unassigned 3,126,389.00 3,126,389.00
Total fund balances 8,261,312.79 159,758.65 401,808.68 2,280,4 70.06 1,814,240.61 15,805,026.31 ~722,617.10
Total liabilities and fund
balances $ 9,121,425.13 $ 380,680.70 $ 667,691.04 $ 2,350,082.15 $ 1,862,735.92 $ 16,561,039.36 $ 30,943,654.30
See AccomoanvinQ Notes to Basic Financial Statements.
t-v
VI
Fund balances of governmental funds
City of Cape Girardeau
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Assets
For the Year Ended June 30, 2013
Amounts reported for governmental activities in the statement of net assets
are different because:
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported in the funds.
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds, net of accumul~ted depreciation of
$80,930,094.98.
Internal service funds are used by management to charge the costs of management
information systems, fleet management, employee fringe benefits, workmen's
compensation, and equipment replacement to individual funds.
Other long-term assets are not available to pay for current-period expenditures and,
therefore are deferred in the funds.
Other accrued expenses which are not payable from current-period revenues
are included in governmental activities in the statement of net assets.
Net assets of governmental activities
See Accompanying Notes to Basic Financial Statements.
$ 28,722,617.10
(23,560,147.44)
172,516,531.35
7,695,523.20
337,801.15
(1,238,631.95)
$ 184,473,693.41
City of Cape Girardeau
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2013
Transportation Other Total
Park and Sales Tax Casino Governmental Governmental
General ~ort Recreation Trust Fund IV Revenue Fund Funds Funds
REVENUES
Taxes $ 16,387,435.26 $ $ $ 4,706,917.11 $ 2,343,418.90 $ 14,439,144.61 $ 37,876,915.88
Licenses & permits 1,669,773.23 4,465.00 1,674,238.23
Intergovemmental 680,367.89 167,000.00 30,000.00 3,199,176.98 4,076,544.87
Charges for services 234,460.66 402,295.42 1,237,221.16 73,695.58 1,947,672.82
Internal charges 1,043,516.18 1,043,516.18
Fines and forfeits 934,225.65 934,225.65
Miscellaneous 342,634.00 228,115.44 12,562.50 480,000.00 116,601.78 1,179,913.72
Investment revenue 87,880.07 303.27 3,889.50 9,654.73 8,353.92 187,296.61 297,378.10
Special assessments 5,205.02 108,871.26 114,076.28
Total revenues 21,385,497.96 797,714.13 1,253,673.16 4,746,571.84 2,831,772.82 18,129,251.82 49,144,481.73
EXPENDITURES
Current:
Administrative 1,913,300.06 1,315,575.04 2,076,097.14 5,304,972.24
Development Services 2,116,671.06 146,276.51 771,902.12 3,034,849.69
Parks and Recreation 1,884,303.30 2,372,670.61 101,850.37 4,358,824.28
Public Safety 12,325,900.38 391,215.83 12,717,116.21
Public Works 2,426,639.93 2,426,639.93 N Debt Service: 0\
Administrative charges 287.38 10,150.23 10,437.61
Interest 60,098.72 5.61 11.47 663,059.00 723,174.80
Principal 96,000.00 2,864,428.83 2,960,428.83
Capital outlay
Administrative 280.00 63,952.55 64,232.55
Capital Improvements 5,642,062.85 5,681,386.06 3,633,187.79 14,956,636.70
Parks and Recreation 9,177.00 279,752.64 288,929.64
Public Safety 94,392.92 266,344.63 360,737.55
Public Works 54,545.52 49,960.34 104,505.86
Total expenditures 20,972,419.27 1,379,533.20 2,381,847.61 5,788,339.36 5,681,397.53 11,107,948.92 47,311,485.89
Excess (deficiency) of
revenues over
expenditures 413,078.69 (581,819.07) (1,128,174.45) (1,041,767.52) (2,849,624.71) 7,021,302.90 1,832,995.84
OTHER FINANCING
SOURCES (USES)
Transfers out (5,393,088.57) (260,000.00) (10,305,907.21 ) (15,958,995.78)
Transfers in 4,961,705.62 578,806.59 1,143,369.71 260,000.00 260,000.00 3,586,091.75 10,789,973.67
Other loan proceeds 4,655,012.38 4,655,012.38
Bond proceeds
Asset disposition 59,073.38 5,681.55 64,754.93
Total other financing
sources and uses (372,309.57) 578,806.59 1,143,369.71 260,000.00 4,655,012.38 (6,714,133.91) (449,254.80)
Net Change in fund
balances 40,769.12 (3,012.48) 15,195.26 (781,767.52) 1,805,387.67 307,168.99 1,383,741.04
Fund balances -beginning 8,226,107.53 162,771.13 386,613.42 3,062,237.58 8,852.94 15,496,857.32 27,343,439.92
Prior period adjustment (5,563.86) 1,000.00 (4,563.86)
Fund balances -ending $ 8,261,312.79 $ 159,758.65 $ 401,808.68 $ 2,280,470.06 $ 1,814,240.61 $ 15,805,026.31 $ 28,722,617.10
See Accompanying Notes to Basic Financial Statements.
N
-..J
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, 2013
Net change in fund balances -tolal governmental funds
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 included in the
government wide statement of activities.
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 capital outlays in
the current period.
Internal service funds are used by management to charge
the costs of information technology, fleet
management, employee fringe benefits, workmen's
compensation, and equipment replacement to individual
funds.
Other long-term assets are not available to pay for current-
period expenditures and, therefore are deferred in the
funds.
Some expenses reported in the statement of activities do not
require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds.
Change in net assets of governmental activities
See Accompanying Notes to Basic Financial Statements.
$ 1,383,741.04
(1,903,176.88)
9,271,679.46
1,366,559.12
(155,243.13)
(67,503.78)
$ 9,896,055.83
City of Cape Girardeau
Statement of Net Assets
Proprietary Funds
For the Year Ended June 30, 2013
Business-type Activities -Enterprise Funds
Total Gov. Activities
Proprietary Internal Service
Sewer Water Solid Waste Golf Course Softball ComQlex Funds Funds
ASSETS
Current assets:
Cash and cash equivalents $ 651.54 $ 807.82 $ 116.73 $ 10.20 $ 15.79 $ 1,602.08 $ 16,127.81
Investments 4,864,069.02 6,030,831.47 893,937.22 76,244.83 117,998.21 11,983,080.75 6,284,048.64
Utilities charges, net 1,022,621.68 985,799.48 533,623.98 2,542,045.14
Special assessments 30,228.77 8,403.02 38,631.79
Other 21,407.35 2,327.62 84.00 23,818.97 130,264.37
Notes receivable 216,225.35
Interest 8,193.97 8,484.86 1,371.49 5.02 18,055.34 8,682.44
Grants
Inventory 662,276.08 14,556.66 19,490.66 696,323.40 178,179.09
Prepaid items 58,570.81 6,710.34 13,131.95 424.71 53.00 78,890.81 166,313.04
N Total Currents assets: 6 1005,743.14 71705,640.69 11442,181.37 91,325.42 1371557.66 __ 1_5,382,448.28 6,999,840.74 00
Noncurrent assets:
Rest Cash and Cash Equivalents 3,009,672.15 85.92 0.55 3,009,758.62
Rest Investments 136,442.05 641,297.49 4,103.24 781,842.78
Land 534,925.49 112,239.55 647,165.04 37,500.00
Buildings 8,078,346.00 223,646.63 1,083,623.13 163,674.80 1,006,876.94 10,556,167.50 53,906.45
Equipment 3,447,983.22 2,204,415.52 3,717,714.30 109,677.93 184,711.75 9,664,502.72 5,225,414.80
Other improvements 73,055,753.87 55,982,036.68 344,022.92 1,972,744.42 1,557,642.35 132,912,200.24 155,653.19
Construction in progress 22,951,157.35 175,202.90 23,126,360.25 114,909.48
Accumulated depreciation (36,707,586.49) (16,330,905.46) (3,029,701.76) (805,583.30) (450,429.59) (57,324,206.60) (3,588,054.81 )
Total Noncurrent assets: 74,506!693.64 42,895! 779.68 2,232,001.93 1,440,513.85 2 1298 1801.45 123,373,790.55 1,999,329.11
Total assets $ 80,512,436.78 $ 50,601,420.37 $ 3,674,183.30 $ L531 ,839.27 $-2,436,359.11 $ 138,756,238.83 $ 8,999,169.85
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Net Assets
Proprietary Funds
For the Year Ended June 30, 2013
Business-type Activities -Enterprise Funds
Total Gov. Activities
Proprietary Internal Service
Sewer Water Solid Waste Golf Course Softball Com~lex Funds Funds
LIABILITIES
Current liabilities:
Accounts payable $ 252,915.06 $ 180,532.11 $ 87,639.43 $ 17,111.52 $ 44,691.16 $ 582,889.28 $ 77,620.10
Salaries and benefits payable 80,650.29 14,813.86 61,616.16 44,115.97 66,968.91 268,165.19 47,724.05
Interest payable 431,909.94 217,715.63 13,096.88 662,722.45
Other liabilities 2,033,986.65 214,617.25 108,229.21 12,642.05 2,369,475.16
Estimated claims payable 452,000.00
Due to other governments 17,592.35 43,546.28 61,138.63
Advances from other funds 26,000.00 30,968.73 19,280.45 76,249.18
Notes Payable 6,750.00 23,254.00 30,004.00
Revenue bonds payable 1,628,281.00 535,000.00 2,163,281.00
Special oblig bonds payable 150,000.00 150,000.00
tv Total Current liabilities: 4,452,085.29 1,206,225.13 469,835.68 104,838.27 130,940.52 6,363,924.89 577,344.15 \.0
Noncurrent liabilities:
Net OPES Obligation 46,043.00 31,814.00 72,315.00 35,913.00 10,435.00 196,520.00 109,499.00
Advances from other funds 504,817.85 102,634.44 87,389.31 694,841.60 37,168.10
Notes Payable 162,000.00 558,096.88 720,096.88
Revenue bonds payable 33,128,947.87 12,763,037.15 45,891,985.02
Special oblig bonds payable 724,795.15 724,795.15
Est landfill post closure cost 35,750.00 35,750.00
Total Non current liabilities: 33 1336 1990.87 12,794,851.15 1,895,774.88 138,547.44 97 1824.31 48,263 1988.65 146,667.10
Total liabilities 37,789,076.16 ~001 ,076.28 2,365,610.56 243,385.71 228,764.83 54,627,913.54 724,011.25
NET ASSETS
Invested in capital assets, net of related 36,481,688.59 28,961,045.74 785,824.91 1,440,513.85 2,298,801.45 69,967,874.54 1,999,329.11
Restricted for debt service
Restricted for depr and replacement 127,000.00 150,000.00 277,000.00
Restricted for emergency fund 2,397,140.00 889,183.00 498,882.00 3,785,205.00
Unrestricted 3,717,532.03 6,600,115.35 23,865.83 (152,060.29) (91,207.17) 10,098,245.75 6,275,829.49
Total net assets $ 42,723 1360.62 $ 36,600,344.09 $ 1,3081572.74 $ 1,288 1453.56 $ 2,207,594.28 84,128 1325.29 $ 8,275,158.60
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds' net assets of business-type activities 579,635.40
$ 84,707,960.69
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended June 30,2013
Total Gov. Activities
Proprietary Internal Service
Sewer Water Solid Waste Golf Course Softball Com~lex Funds Funds
Operating revenues:
Residential charges $ 4,773,338.11 $ 3,865,274.98 $ 2,320,521.92 $ $ $ 10,959,135.01 $
Commercial charges 2,571,696.88 2,548,529.50 35,572.72 5,155,799.10
Transfer station charges 836,286.08 836,286.08
Other fees and charges 129,728.30 242,740.08 91,769.33 464,237.71
Concession revenues 38,369.68 75,677.97 114,047.65
Internal charges 15,763.93 15,763.93 6,360,350.23
Usage fees 437,708.82 301,954.88 739,663.70
Miscellaneous 833.96 58,273.42 52,589.01 11156.83 6 1098.58 118,951.80 240.53
Total operating revenues __ 7,491~J,18_ §, 714,817.98 3,336,739.06 477,235.33 383,731.43 18,403,884.98 6,360,590.76
Operating expenses:
Personnel services 1,548,535.61 245,135.57 1,064,787.74 395,123.84 609,617.77 3,863,200.53 839,385.74
Materials & supplies 626,802.01 1,103,036.92 266,198.15 113,523.78 155,567.04 2,265,127.90 559,585.50
Contractual services 420,759.22 2,692,112.98 1,230,081.71 20,930.45 27,343.64 4,391,228.00 3,627,529.20
General operating expenses 448,959.13 373,868.71 42,803.19 8,717.24 3,202.52 877,550.79 35,245.56
w Special programs 15,747.64 267,368.19 46,818.55 5,316.25 62,116.95 397,367.58
0 Internal service expenses 179,994.43 132,312.20 359,422.42 39,321.96 35,025.70 746,076.71 5,697.00
DepreCiation 2,191,716.02 1,615,003.43 435,250.41 118,830.87 146,577.99 4 1507,378.72 445,970.43
Total operating expenses 5,432,514.06 6 1428 1838.00 3 1445 1362.17 701 1764.39 1,0391451.61 17,047,930.23 5,513 1413.43
Operating Income (loss) __ 2,058,84L1~ 28?,9J9.98 (1 08,62~.111 (224,529.06} (655,720.18) 1,355,954.75 847,177.33
Nonoperating revenues (expenses)
Intergovernmental
Investment revenue 143,954.09 68,286.19 11,197.89 326.55 213.86 223,978.58 62,377.85
Gain from sale of asset 8,176.12 6,129.56 20,403.85 10,071.22 6,660.00 51,440.75 20,189.07
Interest and other charges (562,014.33) (463,271.92) (51,186.44) (7,790.07) (6,072.81) (1,090,335.57) (952.65)
Issuance cost amortization (262,819.13) (5,639.88) (5,008.47) (273,467.48) (500.51)
Loss from sale of asset (7,237.00)
Total nonoperating revenues (expenses) (672,703.25 ) (394,496.05) (24,593.17) 2 1607.70 _ 801.05 (1,01:l~,3~.72) 73,876.76
Income (loss) before contributions and transfers 1,386,143.87 (108,516.07) (133,216.28) (221,921.36) (654,919.13) 267,571.03 921,054.09
Contributed capital -connect fee 91,505.58 91,505.58
Contributed capital -developers 1,854,371.45 216,973.83 2,071,345.28
Contributed capital -government 324,673.72 770,941.65 49,696.57 1,145,311.94
Transfers in 2,783,081.28 1,106,181.00 127,361.33 575,037.68 4,591,661.29 682,475.00
Transfers out (3,417.95) (3,417.95) (101,696.23)
Change in net assets 6,439,775.90 1,985,580.41 (133,216.28) (94,560.03) (33,602.83) 8,163,977.17 1,501,832.86
Total net assets -beginning 36,283,584.72 34,614,763.68 1,441,789.02 1,383,013.59 2,241,197.11 75,964,348.12 6,773,325.74
Prior period adjustment
Total net assets -ending $ 42,723,360.62 $ 36,600,344.09 $ 1,308,572.74 $ 11288 1453.56 $ 2,207,594.28 $ 84,128,325.29 $ 8,275,158.60
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds. 135,273.74
Change in net assets of business-type activities. $ 8,299,250.91
See Accompaying Notes to Basic Financial Statements.
Sewer Water
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 7,475,550.38 $ 6,865,718.33
Receipts from interfund services 15,763.93
Other receipts (24,596.75)
Payments to suppliers (1,019,624.30) (4,570,599.31 )
Payments for salaries and benefits (1,560,267.71) (234,739.61 )
Payments for interfund services used ( 192,768.92) (134,679.95)
Payments made in lieu of franchise taxes (375,702.52) (339,953.61)
Remittance of taxes collected from customers (17,500.09)
Other payments (432.50)
Net cash provided (used) by operating activities 4,300,854.02 1,585,313.35
vJ
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 284,408.85 1,106,181.00
Transfers to other funds
Advance repayment to other funds
Interest paid to other funds
Interfund loan proceeds
Subsidy from federal grant
SubSidy from state grant 6,766.07 1,276.52
Net cash (used) by noncapital financing 291,174.92 1,107,457.52
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 95,836.31 217,876.60
Principal received on promiSSOry note
Interest received on promissory note
Proceeds from sales of capital assets 40,717.55 110,901.56
Proceeds from capital debt 18,050,694.99 (722.00)
Purchase of capital assets (353,709.24) (435,613.34)
Acquisition and construction of capital assets (17,964,974.27) (335,902.85)
Principal paid on capital debt (1,933,522.00) (2,360,000.00)
Interest paid on capital debt (369,546.67) (292,753.01 )
Transfers in for capital acquisitions 16,058.43
Transfers out for capital acquisitions
Transfers in for payment of capital related debt 2,482,614.00
Transfers out for payment of capital related debt
Net cash (used) by capital and related financing
activities 64,169.10 (3,096,213.04)
City of Cape Girardeau
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30,2013
Business-type Activities -Enterprise Funds
Solid Waste Golf Course
$ 3,252,083.21 $ 529,694.35
35,728.31
59.00 255.00
(1,560,492.58) (204,427.75)
(1,050,264.00) (382,398.17)
(359,422.42) (39,321.96)
0.00
317,691.52 (96,198.53)
127,361.33
(26,000.00) (29,476.49)
(6,328.28) (7,790.07)
155.24
(32,173.04) 90,094.77
26,098.00 10,071.22
(185,847.00) (9,224.00)
(186,508.06)
(34,502.63)
(380,759.69) 847.22
See Accompanying Notes to Basic Financial Statements.
Softball
Complex
$ 492,872.61
1,327.90
(373,422.10)
(590,303.10)
(35,025.70)
(504,550.39)
575,037.68
(3,417.95)
(18,351.42)
(6,072.81)
55.82
547,251.32
49,696.57
6,660.00
(77,944.74)
(3,343.88)
(24,932.05)
Government
Total Activities
Proprietary Internal Service
Funds Funds
$ 18,615,918.88 $ 1,861.68
51,492.24 6,242,063.80
(22,954.85) 1,814.02
(7,728,566.04) (4,509,630.04)
(3,817,972.59) (830,133.17)
(761,218.95) (6,608.00)
(715,656.13)
(17,500.09)
(432.50)
5,603,109.97 899,368.29
2,092,988.86 682,475.00
(3,417.95) (101,696.23)
(73,827.91 )
(20,191.16) (95.55)
37,168.10
8,253.65
2,003,805.49 617,851.32
363,409.48
15,343.59
4,402.34
194,448.33 25,184.07
18,049,972.99
(1,062,338.32) (516,037.20)
(18,304,221.00)
(4,480,030.06) (40,000.00)
(696,802.31) (1,450.00)
16,058.43
2,482,614.00
(3.436,888.46) (512,557.20)
!..;.J
N
Sewer
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 151,266.80
Net change in pooled investments (3,243,092.09)
Proceeds from sales and maturities of investments
Purchase of investments
Net cash provided by investing activities (3,091,825.29)
Net Increase (decrease) in cash and cash
equivalents 1,564,372.75
Balances -beginning of year 1,440,387.08
Prior period adjustment 5,563.86
Balances -end of the year $ 3,010,323.69 $
Water
100,093.19
(576,558.64)
715,000.00
238,534.55
(164,907.62)
165,801.36
893.74
City of Cape Girardeau
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2013
Business-type Activities -Enterprise Funds
Solid Waste Golf Course
15,783.92 813.25
54,769.91 2,299.90
70,553.83 3,113.15
(24,687.38) (2,143.39)
24,804.66 2,153.59
$ 117.28 $ 10.20
Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Operating income (loss) $ 2,058,847.12 $ 285,979.98 $ (108,623.11) $ (224,529.06)
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense 2,191,716.02 1,615,003.43 435,250.41 118,830.87
Changes in assets and liabilities:
Accounts payable -supplier 61,444.28 (496,118.16) (7,935.36) 66.44
Accounts payable -other (61,584.17) (8,029.82) (191.98) 2,956.50
Salaries & benefits payable (11,732.10) 10,395.96 14,523.74 12,725.67
Customer receivables 54,774.72 182,183.44 (17,324.86) 25.00
Other operating receivables 59.00
Prepaid expenses 7,388.15 1,243.88 36.66
Inventory (5,345.36) 1,933.68 (6,310.61)
Net cash provided by operating activities $ 4,300,854.02 $ 1,585,313.35 $ 317,691.52 $ (96,198.53)
See Accompanying Notes to Basic Financial Statements.
Government
Total Activities
Softball Proprietary Internal Service
Complex Funds Funds
807.14 268,764.30 78,482.37
(21,213.60) (3,783,794.52) (1,211,645.37)
715,000.00 41.49
(20,406.46) (2,800,030.22) (1,133,121.51)
(2,637.58) 1,369,996.78 (128,459.10)
2,653.37 1,635,800.06 144,586.91
5,563.86
$ 15.79 $ 3,011,360.70 $ 16,127.81
$ (655,720.18) $ 1,355,954.75 $ 847,177.33
146,577.99 4,507,378.72 445,970.43
(15,081.78) (457,624.58) (142,191.03)
(66,849.47)
19,314.67 45,227.94 9,252.57
33.00 219,691.30 1,861.68
59.00 (116,712.94)
1,118.34 9,787.03 (127,418.77)
(792.43) (10,514.72) (18,570.98)
$ (504,550.39) $ 5,603,109.97 $ 899,368.29
\.;)
\.;)
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
City of Cape Girardeau
Statement of Net Assets
Fiduciary Funds
For the Year Ended June 30,2013
See Accompanying Notes to Basic Financial Statements.
$
$
$
$
Agency
Funds
414,632.38
2,209,337.78
34,996.83
9,387.60
13.60
4,722.33
2,673,090.52
16,772.42
18,493.39
2,637,824.71
2,673,090.52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30,2013
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
(GAS B) 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 (CGPF A) is a blended component unit of the City. The financial statements of the CGPF A 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 CGPFA are blended
with the financial presentation of the City. The CGPFA executed a bond indenture for the purpose of
issuing and securing the Series 2009 Bonds. These bonds 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, 2013
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 of the primary government and its component units.
The effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
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 of accounting, 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, 2013
NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation -Continued
The City reports the following major 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 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.
The casino revenue fund accounts for the receipt and expenditure of a gross receipts tax on gaming
revenue at the casino located in the City.
The City reports the following major proprietary funds:
The sewer fund accounts for the operation of the City's sewage treatment plant, sewage pumping
stations, and collection systems.
The water fund accounts for the operation of the City's water treatment plants and distribution systems.
The solid waste fund accounts for the operation of the City'S residential solid waste and recycling
programs.
The golf fund accounts for the operation of the municipal golf course.
The softball complex fund accounts for the operation of the City's softball complex, and maintenance
of the City's soccer, baseball, and softball fields.
Additionally, the City reports the following fund types:
Internal service funds account for management information systems, fleet management, employee
benefits, workers' compensation, and equipment leasing provided to other departments or agencies of
the City, on a cost reimbursement basis.
Agency funds account for the operations of the Cape Girardeau Public Library.
36
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation -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 of following subsequent private-sector guidance for their business-type
activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent
private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the
City's enterprise function and various other functions of the government. Elimination of these charges
would distort the direct costs and program revenues reported for the 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 1) charges to customers or applicants for goods, services, or
privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including
special assessments. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
City's enterprise funds and of the City'S internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not 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, 2013
NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued
4. Capital Assets -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 of activities. Assets are reported net of
depreciation on proprietary fund and government-wide statement of net assets. Depreciation has been
provided over the estimated useful lives using the straight-line method. The estimated useful lives are as
follows:
Buildings
Improvements
Equipment
25-50 years
10-40 years
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, 2013
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 of one year or more at the time of purchase, are recorded at fair value. All
other cash and investments are recorded at cost or amortized cost.
10. Prepaid Items
Payments made to vendors for services that will benefit periods beyond June 30, 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-tenn
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, 2013
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, 2013 with five or more years of
service and who are eligible for LAGERS retirement (Note G) or after April 1, 2013 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, 2013, those costs totaled $860,419.
COBRA Benefits -Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the City
provides health care benefits to eligible former employees and eligible dependents. Certain requirements
are outlined by the federal government for this coverage. The premium is paid in full by the insured on or
before the tenth (10th) day of the month for the actual month covered. This program is offered for a
duration of 18 months after the termination date for employees and their families and 36 months for
surviving spouses and children. There is no associated cost to the City under this program. There were five
retiree spouses participating in the health and dental insurance programs as of June 30, 2013.
40
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE A -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 of the City and are reflected as other improvements in the business-
type activities section on the statement of activities.
During the year ended June 30, 2013 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 31, 2013, 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, 2013, and reported at fair value, are as follows:
Deposits:
Demand Deposits
Interest Bearing Deposit Accounts
Total Deposits
Investments:
Negotiable Instruments
Federal Home Loan Bank
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
US Treasury Note
Total Investments
Total Deposits and Investments
41
$ 2,043,202
1,472,697
$ 3,515,899
$ 40,513,294
494,890
3,204,761
1,005,560
350,123
$ 45,568,628
$ 49,084,527
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE B -DEPOSITS AND INVESTMENTS -Continued
Reconciliation to Statement of Net Assets:
Cash and Cash Equivalents
Investments
$ 91,508
Restricted Cash and Cash Equivalents
Restricted Investments
42,577,448
3,009,758
781,843
414,632
2,209,338
$ 49,084,527
Fiduciary Cash and Cash Equivalents
Fiduciary Investments
Deposits and Investments, Statement of Net Assets
As of June 30, 2013, the City had the following investments:
Investment
Negotiable Instruments
Federal Home Loan Bank
Federal National Mortgage Assoc.
Federal Home Loan Mort. Corp.
US Treasury Note
Total
Custodial Credit Risk:
Maturities
07/08/2013 -05130/2018
10/30/2017
09/16/2014 -11115/2018
04/23/2014 -08/1 0/20 16
10/31/2014
Fair Value
$ 40,513,294
494,890
3,204,761
1,005,560
350,123
$ 45,568,628
Deposits in financial institutions, reported as components of cash, cash equivalents, and investments,
had a bank balance of$52,698,298 at June 30, 2013, 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, 2013 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, 2013
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, 2013, 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 20,
2012, 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
Public Health
Special Business District
#2 (Ad Valorem)
$ .3027/100.00 assessed valuation
.0567 1100.00 assessed valuation
.6734/100.00 assessed valuation
Property tax receivable balances as of June 30, 2013 are as follows:
Special
General Business Public Debt
Revenue District Health Service
Current property tax $36,886 $5,340 $ 6,909 $
Delinquent property tax 16,445 1,634 3,078 10
Reserve for doubtful
Property taxes (8~685) (1~625) (10)
Net property tax receivable $44~646 $6~974 $ 8~362 $
43
Total
$49,135
21,167
(10 2320)
$59~982
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE D -CHANGES IN CAPITAL ASSETS
A summary of the capital assets for governmental activities included on the government-wide statement of
net assets for the year ended June 30, 2013 is as follows:
Balance Current Year Balance
July 1, 2012 Additions Deductions Depreciation * June 30, 2013**
Land $ 4,926,319 $ 5,141,796 $ -$ $ 10,068,115
Buildings 22,754,492 72,386 74,137 980,547 21,772,194
Improvements other
than buildings 10,363,902 230,648 754,923 9,839,627
Equipment 6,019,842 1,168,213 38,889 1,267,414 5,881,752
Infrastructure 118,903,776 9,871,325 4,501,563 124,273,538
Construction in progress 2,218,015 3,756,429 3,293,809 2,680,635
Total capital assets $165 186,346 $ 20 240 727 $ 3A06835 $ 7504A4:Z $ 174,515,861
* 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 of the capital assets for business-type activities on the government-wide statement
of net assets for the year ended June 30, 2013:
Balance Current Year Balance
July 1, 2012 Additions Deductions Depreciation June 30, 2013
Land $ 647,165 $ $ $ $ 647,165
Buildings 2,495,635 77,143 259,039 2,313,739
Improvements other
than buildings 89,417,174 3,345,773 3,418,623 89,344,324
Equipment 4,200,680 959,646 180,008 829,717 4,150,601
Construction in progress 3 2 379 2 240 21 2528,419 1)81 2 299 23 2 126)60
Total capital assets $100 139,894 $ 25910981 $ 1 961 30:Z $ 4,507,379 $ 119 582 189
44
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE D -CHANGES IN CAPITAL ASSETS -Continued
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrati ve
Development Services
Parks and Recreation
Public Safety
Public Works
Total
Business-Type Activities:
Golf Course
Sewer
Softball Complex
Solid Waste
Water
Total
NOTE E -LONG-TERM OBLIGATIONS
$ 450,601
50,477
976,481
768,497
5,258,392
$ 7,504.448
$ 118,831
2,191,716
146,578
435,250
1,615,004
$ 4,507.379
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, 2013:
Governmental Other Revenue
Activities Debt* Bonds Total
Debt payable July 1,2012 $ 19,008,669 $ 937,600 $ 19,946,269
Discount/Premium amortization (471 ) (471 )
Retired (2,957,629) (42,800) (3,000,429)
Additions 4,655,012 4,655,012
Debt payable June 30, 2013 $ 20 705 581 $ 824800 $ 21 600381
*Other Debt includes Notes Payable, Special Obligation Bonds, Leasehold Revenue Bonds, and Certificates of Participation.
45
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
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, 2013:
Business-Type Other Revenue
Activities Debt* Bonds Total
Bonds payable at
July 1, 2012 $ 1,827,645 $ 34,208,439 $ 36,036,084
Discount Premium
Amortization (2,741 ) (43,216) (45,957)
Accumulated Interest 227,329 227,329
Bonds Retired (200,008) (4,635,000) ( 4,835,008)
Bonds Issued 18,297,714 18,297,714
Bonds payable at
June 30, 2013 $ 1 ~624~896 $ 48~055~266 $ 49~680)62
*Other Debt includes Notes Payable and Special Obligation Bonds
46
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG TERM OBLIGATIONS -Continued
Bonds payable for governmental and business-type activities at June 30, 2013 are comprised of the
following individual issues:
Special Obligation Refunding and Improvement Bonds, Series 2002
These bonds were issued October 22,2002 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. The final $155,000 principal due on the Special Obligation
Refunding and Improvement Bonds Series 2002 was paid during the fiscal year ended June 30, 2013.
Waterworks System Refunding Revenue Bonds Series 2006A
These bonds were issued on January 3, 2006 to provide the City with remaining funds needed to retire
$8,170,000 principal amount of Waterworks System Refunding Revenue Bonds, Series 1995. The final
$1,705,000 principal due on the Waterworks System Refunding Bonds, series 2006A was paid during the
fiscal year ended June 30, 2013.
47
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$ 215,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1991 due as
follows:
Year Ending
June 30,
2014
Interest
Rate
Principal
Due
6.875% $ 215,000
$ 215,000
Interest
Due
$ 14,781 $ 229,781
$ 14,781 $ 229,781
These bonds are dated December 1,1991. The proceeds of the bond issue were used to extend and improve
the existing sewerage facilities serving the City.
Principal payments are made annually on June 1, and interest payments are made semi-annually on June 1
and December 1.
The interest due on the Series 1991 Sewer System Revenue Bonds is subsidized by interest earnings on a
reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from
the construction funds held by the trustee, the State of Missouri Department of Natural Resources deposits
an amount equal to approximately 51.907% of the reimbursement into the reserve fund. The maximum
amount of funds that will be advanced to the reserve fund will be $1,250,000. As bonds are retired 500/0 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, 2013 was $107,500. The reserve fund yields
6.71%.
During the fiscal year-end June 30, 2001, certain bonds originally issued by the State Environmental
Improvement and Energy Resources Authority as part of the State Revolving Fund Program were refunded.
Annual debt service savings resulting from this transaction are to be used to offset City debt service
payments due on Series 1991 Bonds. During the fiscal year ended June 30, 2013, City interest expense was
reduced by $8,942 as a result of this transaction. Over the remaining life of these bonds, the City will
receive net present value benefits of approximately $11,982 from this transaction.
48
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$ 76,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1993 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2014 5.400% $ 37,000 $ 3,106 $ 40,106
2015 5.400 39,000 1,053 40,053
$ 76~000 $ 4~159 $ 80)59
These bonds are dated August 1, 1993. The proceeds of the bond issue were used to extend and improve
the existing sewerage facilities serving the City.
Principal payments are made annually on March 1, and interest payments are made semi-annually on March
1 and September 1.
The interest due on the Series 1993 Sewer System Revenue Bonds is subsidized by interest earnings on a
reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from
the construction funds held by the trustee, the State of Missouri Department of Natural Resources deposits
an amount equal to approximately 70% of the reimbursement into the reserve fund. The maximum amount
of funds that will be advanced to the reserve fund will be $350,000. As bonds are retired, 70% of the
amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out of the
reserve fund. The balance of the reserve fund at June 30, 2013 was $53,200. The reserve fund yields
5.15%.
49
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$ 1, 168,580 Water Pollution Control Revenue Bonds (State Revolving Fund Program) Series 1995D
due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2014 6.200% $ 326,281 $ 683,719 $ 1,010,000
2015 6.200 303,920 696,080 1,000,000
2016 6.250 278,844 706,156 985,000
2017 6.250 259,535 715,465 975,000
$1~168~580 $ 2~801A20 $3 2970 2000
These bonds are dated June 1, 1995. The proceeds of the bond issue were used for the extension and
improvement of the existing sewerage system serving the City.
Principal and interest payments are made annually on January 1 beginning in 1998.
The interest due on the Series 1995D Water Pollution Control Revenue Bonds is subsidized by interest
earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project
expenditures from the construction funds, the State of Missouri Department of Natural Resources deposits
an amount equal to 70% of the disbursement into the reserve fund. The maximum amount of funds that
will be advanced to the reserve fund will be 70% of the principal amount less the original issue discount.
As bonds are retired 70% of the amount of bonds retired will be repaid to the State of Missouri Department
of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2013 was
$818,006. The reserve fund yields 5.83%.
50
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$ 5,400,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1996 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2014 5.875% $ 800,000 $ 318,181 $ 1,118,181
2015 5.875 875,000 271,181 1,146,181
2016 5.900 895,000 219,775 1,114,775
2017 5.900 920,000 166,970 1,086,970
2018 5.900 945,000 112,690 1,057,690
2019 5.900 965,000 56,935 1,021,935
$ 5AOO~000 $1~145~732 $ 6~545~732
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% of the amount of bonds retired will
be repaid to the Department of Natural Resources out of the reserve fund. The balance of the reserve fund
at June 30, 2013 was $3,780,000. The reserve fund yields 5.70%.
51
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
During the fiscal year ended June 30, 2001, certain bonds originally issued by the State Environmental
Improvement and Energy Resources Authority as part of the State Revolving Fund Program were refunded.
Annual debt service savings resulting from this transaction are to be used to offset City debt service
payments due on Series 1996 Bonds. During the fiscal year ended June 30, 2013, City interest expense was
reduced by $20,682 as a result of this transaction. Over the remaining life of these bonds, the City will
receive net present value benefits of approximately $85,015 from this transaction.
$ 7,010,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2014 5.000% $ 250,000 $ 376,084 $ 626,084
2015 5.625 275,000 362,099 637,099
2016 5.625 475,000 341,006 816,006
2017 5.625 555,000 312,037 867,037
2018 5.300 590,000 280,793 870,793
2019 5.400 1,590,000 222,228 1,812,228
2020 5.450 1,655,000 134,199 1,789,199
2021 5.500 1,620,000 44,550 1,664,550
$7~010~000 $2~072~996 $ 9~082~996
These bonds are dated November 1,2000. The proceeds of the bond issue were used to extend and improve
the existing sewerage facilities serving the City.
Principal payments are made annually on July 1, and interest payments are made semi-annually on July 1
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 of Missouri Department of Natural Resources deposits
an amount equal to approximately 70% of the reimbursement into the reserve fund. The maximum amount
of funds that will be advanced to the reserve fund will be $5,848,500. As bonds are retired 700/0 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, 2013 was $4,946,733. The reserve fund yields
5.160/0.
52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$12,410,000 Leasehold Revenue Bonds, Series 2009 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due
2014 3.800% $ 2,015,000 $ 472,882
2015 3.900 2,080,000 407,394
2016 4.000 2,150,000 334,594
2017 4.000 2,240,000 248,594
2018 4.000 2,330,000 158,994
2019 4.100 1,595,000 65,794
$12A10~000 $1 ~688~252
Total
$2,487,882
2,487,394
2,484,594
2,488,594
2,488,994
1,660,794
$14~098)52
The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The
CGPF A has entered into a Lease Purchase Agreement with the City. Principal and interest will be paid by
CGPFA from rental and other receipts from the City. Proceeds of the bonds will be used for the
construction of various storm water control improvements, Cape Splash Family Aquatic Center, Shawnee
Park Community Center, and various other park related improvements.
Principal payments are made annually on April 1, and interest payments are made semi-annually on April 1
and October 1.
53
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$3,055,000 Special Obligation Bonds, Series 2005:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
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
$ 3,055,000 $ 552~8389 $\607~838
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.
54
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$1,250,000 Bank of America 2006 Promissory Note:
Year Ending Interest Principal Interest
June 30, Rate Due Due
2014 0.942% $ 100,000 $ 11,541
2015 0.942 100,000 10,599
2016 0.942 100,000 9,683
2017 0.942 100,000 8,715
2018 0.942 100,000 7,773
2019 0.942 100,000 6,831
2020 0.942 100,000 5,889
2021 0.942 100,000 4,947
2022 0.942 100,000 4,005
2023 0.942 100,000 3,063
2024 0.942 100,000 2,121
2025 0.942 100,000 1,179
2026 0.942 50,000 237
$ 1~250~000 $ 76~583
Total
$ 111,541
110,599
109,683
108,715
107,773
106,831
105,889
104,947
104,005
103,063
102,121
101,179
50,237
$ 1~326~583
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: $499,899 for governmental activities and $750,101 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 of the 30-day LIBOR multiplied by 60.938%, plus 0.813%. The
rate at June 30, 2013 was 0.942%.
55
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$894,800 Waterworks Revenue Bonds, Series 2010 due as follows:
Year Ending Interest Principal Interest Admin Fee
June 30, Rate Due Due Due Total
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
$ 894~800 $ 123~821 $ 41 ~551 $ 1~060) 72
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.
56
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$870,000 Special Obligation Bonds, Series 201 OA due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due
2014 3.000% $ 150,000 $ 26,194
2015 3.000 160,000 21,694
2016 2.625 175,000 16,894
2017 3.000 185,000 12,300
2018 3.375 200,000 6,750
$ 870~000 $ 83~832
Total
$ 176,194
181,694
191,894
197,300
206,750
$ 953~832
On March 1,2010, the City issued $1,275,000 of Special Obligation Bonds Series 2010A with interest rates
varying from 2.625% to 3.375%. Principal and interest will be paid by the City from the revenues derived
from annual appropriations by the City Council.
The proceeds of the 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.
57
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$13,300,000 Waterworks System Refunding Revenue Bonds Series 2012A due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
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
$ 13~300~000 $ 5~ 143~425 $ 18~443~425
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 2.00/0 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.
58
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$31 ~000~000 Sewerage System Revenue Bonds (State of Missouri -Direct Loan Program} Series 2012 due
as follows:
Year Ending Interest Principal Interest Admin
June 30, Rate Due Due Fee Total
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
$ 31 ~000~000 $ 5~661~255 $ 3~338~920 $ 40~000~ 175
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 1.430/0 interest
rate. Principal is disbursed on this loan as needed.
The proceeds of the 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.
59
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$4,655,012 Business Park Land Purchase Loan due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2014 2.77% $ 344,480 $ 115,520 $ 460,000
2015 2.77 340,598 119,402 460,000
2016 2.77 350,033 109,967 460,000
2017 2.77 359,454 100,546 460,000
2018 2.77 369,686 90,314 460,000
2019 2.77 379,926 80,074 460,000
2020 2.77 390,450 69,550 460,000
2021 2.77 401,104 58,896 460,000
2022 2.77 412,376 47,624 460,000
2023 2.77 423,799 36,201 460,000
2024 2.77 435,538 24,462 460,000
2025 2.77 447,568 12,432 460,000
$ 4~655~012 $ 864~988 $ 5~520~000
On February 4,2013, the City entered into an agreement with the Southeast Missouri State University
Foundation for the purchase of approximately 247.43 acres located on the east side of Interstate 55
along LaSalle Street for the purpose of creating a business park.
The total purchase price was $6,000,000 with $480,000 paid at the time of closing and twelve (12)
annual payments of $460,000 commencing 12 months from the closing date of the sale.
60
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
$3~250~000 Sewerage System Revenue Bonds (State of Missouri -Direct Loan Program) Series 2013A due
as follows:
Year Ending Interest Principal Interest Admin
June 30, Rate Due Due Fee Total
2014 1.390% $ $ 24,219 $ $ 24,219
2015 1.390 45,175 45,175
2016 1.390 134,000 44,709 32,165 210,874
2017 1.390 137,000 42,840 30,820 210,660
2018 1.390 140,000 40,922 29,440 210,362
2019 1.390 143,000 38,969 28,035 210,004
2020 1.390 147,000 36,967 26,595 210,562
2021 1.390 150,000 34,910 25,115 210,025
2022 l.390 153,000 32,818 23,610 209,428
2023 1.390 157,000 30,677 22,070 209,747
2024 1.390 161,000 28,481 20,490 209,971
2025 1.390 165,000 26,229 18,870 210,099
2026 l.390 169,000 23,922 17,210 210,132
2027 1.390 173,000 21,559 15,510 210,069
2028 1.390 177,000 19,140 13,770 209,910
2029 1.390 181,000 16,666 11,990 209,656
2030 1.390 185,000 14,136 10,170 209,306
2031 1.390 189,000 11,551 8,310 208,861
2032 1.390 193,000 8,910 6,410 208,320
2033 l.390 197,000 6,213 4,470 207,683
2034 1.390 202,000 3,461 2,490 207,951
2035 1.390 97,000 674 485 98,159
$ 3.250,000 $ 553.148 $ 348,025 $ 4.151.173
Sewerage System Revenue Bonds through the State of Missouri -Direct Loan Programs were issued by the
City on June 18,2013. There is a 1 % administrative fee charged on this loan along with the 1.390/0 interest
rate. Principal is disbursed on this loan as needed.
The proceeds of the 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, 2013
NOTE E -LONG-TERM OBLIGATIONS -Continued
The annual requirements to amortize all debt outstanding as of June 30, 2013 including total interest
payments of$20,787,230 are as follows:
Special Leasehold
Year Ending Obligation Revenue Revenue Promissory
June 30, Bonds Bonds Bonds Note Total
2014 $ 1,003,530 $ 4,523,492 $2,487,882 $ 571,541 $ 8,586,445
2015 1,536,430 4,342,953 2,487,394 570,599 8,937,376
2016 319,380 6,158,724 2,484,594 569,683 9,532,381
2017 326,586 6,177,105 2,488,594 568,715 9,561,000
2018 337,636 5,173,866 2,488,994 567,773 8,568,269
2019 127,196 6,082,423 1,660,794 566,831 8,437,244
2020 128,484 5,035,039 565,889 5,729,412
2021 129,494 4,910,189 564,947 5,604,630
2022 130,244 3,247,169 564,005 3,941,418
2023 130,781 3,248,116 563,063 3,941,960
2024 130,969 3,247,469 562,121 3,940,559
2025 260,940 3,246,335 561,179 4,068,454
2026 3,248,726 50,237 3,298,963
2027 3,249,285 3,249,285
2028 3,252,038 3,252,038
2029 3,253,528 3,253,528
2030 3,253,888 3,253,888
2031 3,186,053 3,186,053
2032 3,189,388 3,189,388
2033 2,217,947 2,217,947
2034 2,217,668 2,217,668
2035 1,102,212 1,102,212
$ 4~561 ~670 $ 83~563~613 $14~098~252 $ 6~846~583 $109~070~118
The cash and investments available to service revenue bonds are $56,968 and $2,396,914 for the
governmental and business-type activities, respectively.
The cash and investments available to service the special obligation bonds are $765,388 and $11,539 in
governmental activities and business-type activities, respectively.
62
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
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
Total
Business-Type Activities:
Golf Course
Sewer
Softball Complex
Solid Waste
Water
Total
$713,682
$713.682
$ 7,790
562,014
6,073
51,187
463,272
$ 1.090.336
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 $27,602,408.
NOTE F -DEFICIT FUND BALANCESIRETAINED EARNINGS
These following funds -Housing Development Grants, Riverfront Region Economic Development,
Water System Improvement Projects, and Municipal Development Foundation -had their total
liabilities exceed their total assets by $50,512, $8,396, $26,759, and $1,736, respectively.
63
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
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 9.1 % (General), 9.9% (Police) and 14.3% (Fire) of annual covered
payroll. The contribution requirements of plan members are determined by the governing body of the
political subdivision. The contribution provisions of the political subdivision are established by state
statute.
3. Annual Pension Cost (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
Interest on net pension obligation
Adjustment to annual required contribution
Annual pension cost
Actual contributions
Increase (decrease) in NPO
NPO beginning of year
NPO end of year
$1,615,841
43,798
(37,358)
1,622,281
1,475,263
147,018
604,112
$ 751.130
The annual required contribution (ARC) was determined as part of the February 28,2011 annual actuarial
valuation using the entry age actuarial cost method. The actuarial assumptions as of February 28, 2013
included: (a) a rate ofreturn 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, 2013
NOTE G -PENSION PLAN -Continued
attributable to seniority/merit, (d) pre-retirement mortality based on 75% of the RP-2000 Combined Healthy
Table set back 0 years for men and 0 years for women, and (e) post-retirement mortality based on 1050/0 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 ofprojected payrolls on an open basis. The amortization period at February
28, 2011 was 30 years for the General division, 30 years for the Police division and 30 years for the Fire
division.
Three-Year Trend Information
Year Annual Percentage Net
Ended Pension ofAPC Pension
June 30 Cost (APC) Contributed Obligation
2011 1,533,704 75.4% 377,291
2012 1,568,825 85.5% 604,112
2013 1,622,281 90.9% 751,130
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, 2013
NOTE H -POSTRETIREMENT HEAL THCARE BENEFITS
1. Description
The City follows the provisions of GASB Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions. In addition to the relevant disclosures
within this note related to GASB Statement No. 45, the financial statements reflect a long-term liability and
related expenses of$2,501,422 and $936,549, 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 of the City's
firm commitment to provide OPEB through the payment of premiums 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, 2013, 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 proj ected to cover normal cost each year
and amortize any unfunded actuarial liabilities (or funding excess) over a period of30 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, 2013
NOTE H -POSTRETIREMENT HEALTHCARE BENEFITS -Continued
2012
Annual required contribution $ 881,028
Interest on net OPEB obligation 100,214
Adjustment to annual required contribution (136)17)
Annual OPEB cost $ 844,525
Contributions made (705~699)
Increase in net OPEB obligation $ 183,826
Net OPEB obligation, July 1 2~226~981
Net OPEB obligation, June 30 $ 2~365~807
2013
$ 936,549
106,461
(145~240)
$ 897,770
(762)55)
$ 135,615
2~365~807
$ 2~501~422
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net
OPEB obligation for 2013 were as follows:
Percentage of NetOPEB
Fiscal Year Annual AnnualOPEB Obligation -
Ended OPEB Cost Cost Contributed End of Year
6/30/13 $ 897,770 84.9% $ 2,501,422
6/30/12 844,525 83.6% 2,365,807
6/30111 1,226,054 55.4% 2,226,981
4. Funding Status and Funding Progress
As of July 1,2012, the most recent actuarial valuation date, the Plan was not funded. The actuarial accrued
liability for benefits equaled $9,669,406, resulting in an unfunded actuarial accrued liability (UAAL) of
$9,669,406. The covered payroll (annual payroll of active employees covered by the Plan) equaled
$14,706,953, and the ratio of the UAAL to the covered payroll equaled 65.7%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about
future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded
status of the Plan and the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made about the future.
The schedule of funding progress is to present multiyear trend infonnation about whether the actuarial value
of the Plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
However, because the City maintains no Plan assets, information relative to Plan asset required disclosures
is not applicable.
67
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE H -POSTRETIREMENT HEALTHCARE BENEFITS -Continued
5. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive Plan (the Plan as
understood by the City and Plan members) and include the types of benefits provided at the time of each
valuation and the historical pattern of sharing of benefit costs between the City and Plan members to that
point. There are no legal or contractual funding limitations that would potentially affect the proj ection 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 1,2012, 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 $730,018, excluding $3,594 of inter fund interest, was incurred by
governmental funds during the year ended June 30, 2013. Interest and handling charges, totaling $1,070,280
excluding $20,287 of interfund interest, was incurred by proprietary funds during the year ended June 30,
2013. 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 inter fund balances as of June 30,2013:
Advance to/from other funds:
General Fund
Solid Waste Fund
Golf Course Fund
Softball Complex Fund
Advances from
$ 771,091
$ 771 091
Advances to
$
530,818
133,603
106,670
$ 771.091
The interfund balances are a result of advances to purchase capital assets and to pay for operating expenses.
Repayments are made as cash flows permit. If cash flows are not sufficient, repayments are deferred to
subsequent years.
68
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
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 inter fund transfers for the year ended June 30, 2013:
Fund Transfer From Transfer To
General Fund $ 5,393,088 $ 4,961,705
Airport Fund 578,807
Park and Recreation Fund 1,143,370
Housing Development Fund 36,984
Motor Fuel Tax Fund 1,010,000
Water System Improvements 1,721,903
Sewer System Improvements 2,482,614
Transportation Sales Tax Trust Fund 40,000
Transportation Sales Tax Trust II 142,000
Fire Sales Tax Fund 2,347,287
Public Safety Trust Fund 1,349,123 2,347,288
Transportation Sales Tax Trust III 142,000
Park/Storm Water Sales Tax 1,097,173
Park/Storm Water Sales Tax-Capital 115,417
Transportation Sales Tax Trust IV 260,000
Casino Revenue Fund 260,000 260,000
General Capital Improvements 120,000
Park Improvements Fund 18,108
Community Development Block
Grant Project Fund 2,246 213
Water System Improvement
Projects Fund 624,922
Park Improvement Projects from
Park Sales Tax 43,525 141,160
Sewer Fund 2,783,081
Water Fund 1,106,181
Golf Course Fund 127,361
Softball Complex Fund 3,418 575,038
Information Technology Fund 682,475
Fleet Management Fund 15,344
Fringe Benefits Fund 86,353
Arena Improvement 107,248
Parks & Recreation Foundation 2,788
$ 16064 110 $ 16064 110
69
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
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, 2013 was as follows:
Softball
Sewer Water Solid Waste Golf Course Complex Total
Fund Fund Fund Fund Fund Enterprise
Operating revenues $ 7,491,361 $ 6,714,818 $3,336,739 $ 477,235 $ 383,732 $18,403,885
Depreciation 2,191,716 1,615,004 435,250 118,831 146,578 4,507,379
Operating Income (Loss) 2,058,847 285,980 ( 108,623) (224,529 (655,720) 1,355,955
Operating transfers in 2,783,081 1,106,181 127,361 575,038 4,591,661
Net Income (Loss) 6,439,776 1,985,580 (133,216) (94,560) (33,603) 8,163,977
Current Capital Contributions 2,270,551 987,915 49,697 3,308,163
Property, Plant and Equipment
Additions 22,305,311 1,425,696 187,847 9,224 74,443 24,002,521
Deletions 289,099 222,238 88,344 599,681
Net Working Capital 1,553,658 6,499,415 972,346 (13,513) 6,617 9,018,523
Total Assets 80,512,437 50,601,421 3,674,183 1,531,839 2,436,359 138,756,239
Current Liabilities 4,452,085 1,206,225 469,836 104,838 130,941 6,363,925
Long-Term Liabilities 33,336,991 12,794,851 1,895,775 138,548 97,824 48,263,989
Amounts payable to other funds 530,818 133,603 106,670 771,091
Total Liabilities 37,789,076 14,001,076 2,365,611 243,386 228,765 54,627,914
Total Net Assets $42,723,361 $ 36,600,345 $1,308,572 $ 1,288,453 $2,207,594 $84,128,325
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. Prepaid
expenses of$135,560 and long-term advance receivables of$771,091 are also reflected as non-spendable
fund balances.
70
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
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 $4,746,268 are restricted by the City
Charter to use during officially declared emergencies. Special revenue fund balances totaling $15,230,816
are restricted by their enabling legislation. $587,130 in capital project fund balances are restricted as the
result of special revenue transfers and unspent bond proceeds. The remaining $225,385 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 fund balance of the Casino Revenue Fund is committed for various uses identified in a policy approved
by the City Council.
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 councilor 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 offund balance that
is identified.
71
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE L -FUND BALANCE REPORTING -Continued
Major
S~ecial Revenue Funds
Parks and Transportation
General Airport Recreation Sales Tax Casino
Fund Fund Fund Trust Fund IV Revenue
Fund balances
Nonspendable:
Prepaid expenses $ 102,707 $ 15,850 $ 3,843 $ $
Long-term advance 771,091
Restricted for:
Mausoleum 93,656
Emergencies 4,088,745
Convention and tourism
River campus bonds
Community development
Public safety
Street projects 2,280,470
Water system projects
Sewer system projects
Parks and recreation
Park and storm water projects
Other capital projects
Committed:
Other capital projects 1,814,240
Assigned to:
Airport 143,909
Parks and recreation 397,966
Encumbrances 78,725
Debt service
Public safety
Street projects
Parks and recreation
Other capital projects
Unassigned: 3,\26,389 ----
$8261313 $159,759 $ 401 802 $ 2280410 $ 1,814,240
72
Other
Funds Total
$ 13,160 $ 135,560
771,091
93,656
657,523 4,746,268
39,487 39,487
131,729 131,729
413,522 413,522
188,474 188,474
3,816,692 6,097,162
3,375,864 3,375,864
2,461,804 2,461,804
752,220 752,220
2,397,202 2,397,202
92,210 92,210
1,814,240
143,909
397,966
78,725
26,024 26,024
921,782 921,782
86,071 86,071
326,465 326,465
104,797 104,797
3 126389
$ 15805026 $ 28122611
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE M -RESERVED RETAINED EARNINGS AND RESTRICTED ASSET ACCOUNTS
At June 30, 2013, the City has restricted assets in its Proprietary Funds as follows:
Depreciation Revenue Bond
and Bond Sinking and
Replacement Construction Reserve Fund Total
Sewer Fund $ 127,000 $ $3,019,114 $ 3,146,114
Water Fund 150,000 4,687 486,697 641,384
Solid Waste Fund 3,228 876 4,104
$ 277,000 $ 7,915 $3 506687 $ 3 791,602
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 $35,750 as of June 30, 2013, which is based on the
amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain
the landfill were acquired as of June 30, 2013. 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, 2013
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 eleven 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 of the fund. Currently the fund is comprised of878 Missouri counties,
municipalities, and special districts. Premiums for these coverages are actuarially determined based on
actual claims of the pool and individual claims of the City. Each year, portions of premiums not required
because of below expected claims are returned to the members. The City has received refunds of premiums
in each of the last 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
A.M. Best.
Airport liability is carried by Catlin Insurance Company. It is rated "A+" by A.M. Best.
Property insurance is carried by Chubb Group of Insurance Companies. It is rated "A++" by A.M. Best.
Equipment coverage is carried by Travelers Property Casualty Company of America. It is rated "A+" by
A.M. Best.
The City has established self-insurance plans for employees' health insurance and workers' compensation.
Both 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 $3,000,000 and $3,300,000 annually beginning
January 1,2012 and 2013, 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 93.50/0 and 93.9% of the aggregate stop
loss amount for fiscal years ending June 30, 2012 and 2013 respectively.
74
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
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 & Hand $400,000 for other regular employees
and per occurrence claims liability to $1,000,000. Additionally, $5,000,000 in coverage is provided for
annual claims in excess of$1 ,699,596. Rates are charged by the internal service fund to the other City funds
based on rates and experience factors established by the National Council on Compensation Insurance and
City of Cape Girardeau actual claims trends. Safety National is rated "A" by A. M. Best.
Claims liability is estimated using data supplied by the administrator. The claims activity during the last
five years is summarized as follows:
CLAIMS LIABILITIES RECONCILIATION
Balance June 30, 2008 $
Provision for Incurred Claims
Payment of Claims
Balance June 30, 2009 $
Provision for Incurred Claims
Payment of Claims
Balance June 30, 2010 $
Provision for Incurred Claims
Payment of Claims
Balance June 30, 2011 $
Provision for Incurred Claims
Payment of Claims
Balance June 30, 2012 $
Provision for Incurred Claims
Payment of Claims
Balance June 30, 2013 $
Health
Insurance
111,500
1,860,053
(1,773,053)
198,500
1,843,651
(1,911,151)
131,000
2,238,055
(2,171 ,055)
198,000
2,847,800
(2,820,300)
225,500
2,452,823
(2A71~323)
207~000
75
$
$
$
$
$
$
Workers'
Compensation
270,000
523,905
(363,905)
430,000
583,662
(493,662)
520,000
106,108
(526,108)
100,000
436,715
(251,715)
285,000
112,448
(l52~448)
245~000
$ 381,500
2,383,958
(2,136,958)
$ 628,500
2,427,313
(2,404,813)
$ 651,000
2,344,163
(2,697,163 )
$ 298,000
3,284,515
(3,072,015)
$ 510,500
2,565,271
(2~623)71)
$ 452~000
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE P -CONCENTRATION OF CREDIT RISKIBAD DEBT ALLOWANCE
The City has uncollateralized utility accounts receivable generated within a limited geographical region
primarily consisting of its City limits. The City also has taxes, special assessments, and user fees receivable
which are concentrated among its citizens. Some of these items attach as liens against real and personal
property. The maximum accounting loss is the amount shown as utility charges receivable on the statement
of net assets.
At June 30, 2013, utility receivables totaled $2,760,249. On the financial statements, the utility receivables
are shown net of the allowance for doubtful accounts of $218,204. This results in net utility receivable of
$2,542,045. During the year ended June 30, 2013, the allowance was increased by $189,531 or
approximately 1.12% of the current year's utility charges and accounts totaling $141,291 were written off.
NOTE Q -COMMITMENTS AND CONTINGENCIES
1. Litigation
Various claims and lawsuits are pending against the City. In the opinion of City management, the potential
loss on all claims and lawsuits will not be significant to the City's financial statements.
2. Grant Audit
The City receives Federal and State Grants for specific purposes that are subject to review and audit by
various Federal and State agencies. Such audits could result in a request for reimbursement by any of the
Federal and State agencies for expenditures disallowed under the terms and conditions of the appropriate
agency. In the opinion of City management, such disallowances, if any, will not be significant.
3. Construction Commitments
As of June 30, 2013, the City had construction commitments outstanding of$39,085,887. The construction
commitments represent incomplete portions of contracts entered into to construct the following: new
Wastewater Treatment Plant, various street projects, and the replacement of the concession stand roof at
Shawnee Park. These contracts are expected to be completed within the next fiscal year.
4. Encumbrances
As of June 30, 2013, the City had encumbrances outstanding of$43,530,78l.
76
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE R -PRIOR PERIOD ADJUSTMENTS
The net assets of the governmental funds have been decreased by $4,563.86 as of June 30, 2013. The larger
adjustment was a decrease of $5,563.86 to the General Fund for the reversal of prior year internal salary
charges paid to the Sewer Fund for a sanitary sewer project that was not accepted into the city because it is a
private development. The increase to fund balance in the CDBG Fund was a $1,000.00 write off of a
liability to the state for unused grant revenue.
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
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, 2013, 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.
77
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE S -CONTINGENCY -Continued
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.
In October 2012, the City of Cape Girardeau and Cape Girardeau County entered into an amendment
to the original development agreement. Under the agreement, the local developer agreed to pay for
additional public improvements incurred in conjunction with the development of the 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 retail store.
The local developer is eligible to be reimbursed for costs of public improvements up to $3,000,000.
The City and County are required by the development agreement to reimburse the developer for these
costs after the original development costs have been reimbursed with quarterly payments from
available revenue. Available revenue is defined by the agreement as all the net sales tax revenue
generated by Academy Sports at that location on sales that exceed an inflation adjusted $2.5 million
annually from two .25% City capital improvement sales taxes and half of the .50% City
transportation sales tax and 500/0 of the net sales tax revenue generated by a .50% County sales tax.
All City sales taxes have expiration dates 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 additional public improvements is reimbursed
to the developer or fifteen years from the beginning of repayments to the developer for costs related
to the additional public improvements.
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, 2013 the City incurred payments of $133,447 under the development
agreement. This amount is included in the Development Services expenses on the statement of
activities.
3. In July 2007, the City entered into a development agreement with Greater Missouri Builders, Inc.
(GMB) to reimburse them for costs associated with the Town Plaza Redevelopment Project. In
conjunction with this agreement the City established the Town Plaza Community Improvement
District (CID) and determined the project area to be blighted pursuant to Chapter 353 of the
Missouri Revised Statutes.
78
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2013
NOTE S -CONTINGENCY -Continued
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% of the 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, 2013,
the City incurred payments of $3 7,728 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, 2013
NOTE S -CONTINGENCY -Continued
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 .500/0 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, 2013
the City incurred $159,106 under the development agreement.
80
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 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 15,946,195.00 $ 15,946,195.00 $ 16,387,435.26 $ 441,240.26
Licenses & permits 1,491,000.00 1,491,000.00 1,669,773.23 178,773.23
Intergovernmental 421,092.00 421,092.00 624,584.04 203,492.04
Charges for services 231,050.00 231,050.00 234,460.66 3,410.66
Internal charges 1,079,781.00 1,079,781.00 1,133,193.68 53,412.68
Fines and forfeits 890,000.00 890,000.00 934,225.65 44,225.65
Miscellaneous 327,481.00 327,481.00 342,375.90 14,894.90
Investment revenue 75,051.00 75,051.00 103,817.12 28,766.12
Total revenues 20,461,650.00 20,461,650.00 21,429,865.54 968,215.54
EXPENDITURES
Current:
Administrative 1,870,789.00 1,940,264.00 1,851,008.34 89,255.66
Contingency 80,000.00 74,225.00 54,428.07 19,796.93
Development Services 2,269,804.00 2,326,054.00 2,180,294.34 145,759.66
Parks and Recreation 1,904,746.00 1,959,628.00 1,899,164.86 60,463.14
Public Safety 12,287,313.00 12,481,850.00 12,318,215.06 163,634.94
00 Public Works 2,497,388.00 2,543,888.00 2,452,263.55 91,624.45
Total current 20,910,040.00 21,325,909.00 20,755,374.22 570,534.78
Debt service:
Administrative charges 470.00 470.00 287.38 182.62
Interest 62,137.00 62,137.00 60,098.72 2,038.28
Principal 96,000.00 96,000.00 96,000.00
Total debt service 158,607.00 158,607.00 156,386.10 2,220.90
Capital outlay:
Administrative
Development Services
Public Safety 17,000.00 17,000.00 43,719.38 (26,719.38)
Public Works 56,164.00 56,164.00 54,545.52 1,,618.48
Total capital outlay 73,164.00 73,164.00 98,264.90 (25,100.90)
Total expenditures 21,141,811.00 21,557,680.00 21,010,025.22 547,654.78
Excess (deficiency) of revenues
over (under) expenditures (680,161.00) (1,096,030.00) 419,840.32 1,515,870.32
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Compensation for damages 258.10 258.10
Transfers in 4,972,461.00 5,066,961.00 4,961,705.62 (105,255.38)
Special assessments 12,800.00 12,800.00 5,205.02 (7,594.98)
Advance repayments 73,828.00 73,828.00 73,827.91 (0.09)
Asset disposition 30,800.00 30,800.00 59,073.38 28,273.38
Special programs (12,000.00) (12,000.00)
Transfers out (4,241,610.00) (5,181,385.00) (5,393,088.57) (211,703.57)
Total other financing sources and uses and special items 848,279.00 3,004.00 (305,018.54) (308,022.54)
Net change in fund balances 168,118.00 (1,093,026.00) 114,821.78 1,207,847.78
Fund balances --beginning 7,313,261.19 7,313,261.19 7,313,261.19
Prior period adjustment (5,563.86) (5,563.86)
Fund balances --ending $ 7,481,379.19 $ 6,220,235.19 $ 7,422,519.11 $ 1,202,283.92
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, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intergovernmental $ 617,000.00 $ 617,000.00 $ 167,000.00 $ (450,000.00)
Charges for services 331,675.00 331,675.00 402,295.42 70,620.42
Miscellaneous 220,450.00 220,450.00 228,115.44 7,665.44
Investment revenue 1,875.00 1,875.00 482.89 (1,392.11 )
Total revenues 1,171,000.00 1,171,000.00 797,893.75 (373,106.25)
EXPENDITURES
Current:
Administrative 1,213,635.00 1,344,935.00 1,312,742.18 32,192.82
Total current 1,213,635.00 1,344,935.00 1,312,742.18 32,192.82
00 Debt service: to
Interest 5.61 (5.61)
Principal
Total debt service 5.61 (5.61 )
Capital outlay:
Administrative 500,000.00 500,000.00 63,952.55 436,047.45
Total capital outlay 500,000.00 500,000.00 63,952.55 436,047.45
Total expenditures 1,713,635.00 1,844,935.00 1,376,700.34 468,234.66
Excess (deficiency) of revenues
over (under) expenditures (542,635.00) (673,935.00) (578,806.59) 95,128.41
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 542,634.00 576,134.00 578,806.59 2,672.59
Total other financing sources and uses and special items 542,634.00 576,134.00 578,806.59 2,672.59
Net change in fund balances (1.00) (97,801.00) 97,801.00
Fund balances --beginning 153,909.97 153,909.97 153,909.97
Fund balances --ending $ 153,908.97 $ 56,108.97 $ 153,909.97 $ 97,801.00
See Independent Auditors' Report.
City of Cape Girardeau
Park and Recreation
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Charges for services $ 1,237,190.00 $ 1,237,190.00 $ 1,237,221.16 $ 31.16
Miscellaneous 11,880.00 11,880.00 12,562.50 682.50
Investment revenue 6,250.00 6,250.00 6,247.90 (2.10)
Total revenues 1,255,320.00 1,255,320.00 1,256,031.56 711.56
EXPENDITURES
Current:
Parks and Recreation 2,339,792.00 2,443,012.00 2,390,224.27 52,787.73
Total current 2,339,792.00 2,443,012.00 2,390,224.27 52,787.73
Capital outlay:
00 Parks and Recreation 9,200.00 v) 9,177.00 23.00
Total capital outlay 9,200.00 9,177.00 23.00
Total expenditures 2,339,792.00 2,452,212.00 2,399,401.27 52,810.73
Excess (deficiency) of revenues
over (under) expenditures (1,084,472.00) (1,196,892.00) (1,143,369.71) 53,522.29
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Compensation for damages
Transfers in 1,119,472.00 1,161,272.00 1,143,369.71 (17,902.29)
Asset disposition
Transfers out
Total other financing sources and uses and special items 1,119,472.00 1,161,272.00 1,143,369.71 (17,902.29)
Net change in fund balances 35,000.00 (35,620.00) 35,620.00
Fund balances --beginning 379,048.29 379,048.29 379,048.29
Fund balances --ending $ 414,048.29 $ 343,428.29 $ 379,048.29 $ 35,620.00
See Independent Auditors' Report.
City of Cape Girardeau
Casino Revenue
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 1,500,000.00 $ 1,500,000.00 $ 2,343,418.90 $ 843,418.90
Miscellaneous 480,000.00 480,000.00
Investment revenue 5,000.00 5,000.00 7,450.96 2,450.96
Total revenues 1,505,000.00 1,505,000.00 2,830,869.86 1,325,869.86
EXPENDITURES
Debt service:
Administrative charges
Interest 11.47 (11.47)
00 Principal
.j::;.
Total debt service 11.47 (11.47)
Capital outlay:
Capital Improvement Projects 1,620,000.00 6,028,919.62 (4,408,919.62)
Total capital outlay 1,620,000.00 6,028,919.62 (4,408,919.62)
Total expenditures 1,620,000.00 6,028,931.09 (4,408,931.09)
Excess (deficiency) of revenues
over (under) expenditures 1,505,000.00 (115,000.00) (3,198,061.23) (3,083,061.23)
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 260,000.00 260,000.00 260,000.00
Other loan proceeds 4,655,012.38 4,655,012.38
Transfers out (260,000.00) (260,000.00) (260,000.00)
Total other financing sources and uses and special items 4,655,012.38 4,655,012.38
Net change in fund balances 1,505,000.00 (115,000.00) 1,456,951.15 1,571,951.15
Fund balances --beginning 8,815.29 8,815.29 8,815.29
Fund balances --ending $ 1,513,815.29 $ (106,184.71) $ 1,465,766.44 $ 1,571,951.15
See Independent Auditors' Report.
00
VI
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, 2013
REVENUES
Investment revenue
Total revenues
EXPENDITURES
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 --ending
Budgeted Amounts
Original Final Actual Amounts
$ 17,500.00 $ 17,500.00 $ 44,318.12
17,500.00 17,500.00 44,318.12
1,176,183.00 1,176,183.00 21,165.06
1,176,183.00 1,176,183.00 21,165.06
1,176,183.00 1,176,183.00 21,165.06
(1,158,683.00) (1,158,683.00) 23,153.06
142,000.00 142,000.00 142,000.00
142,000.00 142,000.00 142,000.00
(1,016,683.00) (1,016,683.00) 165,153.06
3,029,770.46 3,029,770.46 3,029,770.46
$ 2,013,087.46 $ 2,013,087.46 $ 3,194,923.52
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
26,818.12
26,818.12
1,155,017.94
1,155,017.94
1,155,017.94
1,181,836.06
1,181,836.06
$ 1,181,836.06
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2013
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 from Park / 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 financial
statements.
1. The City Manager submits to the City Council a proposed operating budget for the fiscal
year ending the following June 30th at the first meeting of June each year. The operating
budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to July 1, the budget is legally enacted through passage of an ordinance.
4. The City Manager is authorized to transfer budgeted amounts between programs within
any department; however, any revisions that alter the total appropriations of any
department must be approved by the City Council. Departments may not legally exceed
their appropriations without approval from the City Council. Appropriations expire at the
end of the year; however, outstanding encumbrances at the end of the year are honored by
the City.
5. Formal budgetary integration is employed as a management control device during the
year for all funds.
6. Budgets for all funds are adopted on a budgetary basis.
7. If, during the fiscal year, the City Manager certifies there are additional revenues to
appropriate, unencumbered appropriation balances within a department, or there is an
emergency situation, the City Council may amend the initial budget by ordinance. The
initial budget was adopted by the City Council on June 18, 2012 and amended on
February 4,2013, April 1,2013, and July 15,2013. The initial budget and final amended
budget are both reflected in the financial statements.
For the year ended June 30, 2013, the fund expenditures for Casino Revenue, Debt Service, and
FAU grant projects exceeded their approved budgets by $4,408,931, $61, and $7,172, respectively.
86
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2013
BUDGETS AND BUDGETARY ACCOUNTING -Continued
The Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds
reports revenues and expenditures on the modified accrual basis of accounting in accordance with
GAAP. The Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and
Actual (Budget Basis) for all governmental fund types is prepared on a budgetary basis which
includes encumbrances as expenditures.
The following reconciliation adjusts GAAP basis to budget basis:
GAAP Basis
Increase due to:
Year-end encumbrances
Administrative services
Development services
Parks and recreation
Public Safety
Public Works
Capital outlay
Contingency
Funds not budgeted annually
Advance from other funds
Adjust investments to market
Encumbrance revenue
Decrease due to:
Year-end encumbrances
Administrative services
Development services
Parks and recreation
Public safety
Public works
Capital outlay
Contingency
Encumbrance revenue
Adjust invest to market
Budget Basis
$ 40,769
4,382
19,319
2,415
90,072
13,740
750
73,828
15,937
220,443
8,989
9,220
3,689
31,713
36,995
55,784
146,390
$ 114,822
Excess (Deficiency) of Revenues and Other
Financing Sources Over (Under) Expenditures and
Other Financing Uses
Transportation
Parks and
Recreation
Sales Tax Trust Casino Revenue
Fund IV Fund
$ (3,012) $ 15,195 $ (781.768) $ 1,805,388
8,658
4,892
3,785,068
180 2,358 14,284
8838 7250 3,799352
5,826
22,445
1,292,175
347,534
903
5826 22445 I 292 175 348437
$ $ 1,725,409 $ 1456951
Non-major
Funds
$ 307,161
23,654
23,906
39,631
2,141,886
561,394
51,504
22,463
2,864,438
12,820
5,538
145,479
1,558,604
12
I 722453
$ 1,449,146
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, 2013
BUDGETS AND BUDGETARY ACCOUNTING -Continued
Net Income (Loss)
Solid
Sewer Water Waste
GAAP Basis $ 6,439,776 $ 1,985,580 $ (133,216) $
Increase due to :
Prior year encumbrances
Operating expenses 279,011 7,373 104,401
Capital Outlays 1,502,566 1,213 160,541
Depreciation 2,191,716 1,615,003 435,250
Special assessments 3,527 724
Bond proceeds 18,297,714
Interest cost amortized 225,103 194,982
Cost of bond refunding amortization 15,805
Deferred revenue 49,635 171,814
Interest paid more than accrual 321,093 13,097
Issuance cost amortization 15,800 5,640 5,008
Adjust investments to market 5,202 25,191 3,732
Adjustment to liability for future landfill
postclosure maintenance costs 415
Net OPEB obligation 5,089
Asset dispositions 55,093 119,272 7,694
22,946,460 2,162,106 730,138
Decrease due to:
Year-end encumbrances
Operating expenses 130,536 11,236 99,923
Capital outlays 40,913,741 205,183
Landfill closure and maintenance costs 3,665
Interest paid more than accrual
Bond principal paid 2,288,500 2,360,000 212,508
Amortized Bond premium/discount 40,990 2,741
Capital outlays 20,122,935 569,042 187,846
Deferred revenues 22,696
Amount deferred for future debt service for
capital appreciation bonds:
Interest subsidy received 256,355
Net OPEB Obligation 41,927 4,842
Contributed capital 2,179,045 987,915
65,933,039 4,174,366 534,221
Budget Basis $(36 546 803) $ (26680) $ 62101 $
88
Golf Softball
Course ComQlex
(94,560) $ (33,603)
3,540 8,237
118,831 146,578
307 366
4,183 753
126,861 155,934
432 6,007
1l,755
29,477 18,351
31,592
49,697
29,909 117,402
2322 $ 4222
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2013
BUDGETS AND BUDGETARY ACCOUNTING -Continued
Net Income (Loss)
Data Fleet Employee Risk
Processing Management Fringe Management
GAAP Basis $ 492,841 $ (31,124) $ 662,058 $ 347,082
Increase due to:
Prior year encumbrances
Operating expenses 6,861
Capital Outlays 11,414
Depreciation 130,270 24,819
Deferred revenues 15,344
Issuance cost amortization
Difference between proceeds from
sale of fixed assets and gain or loss
Net OPEB Obligation 1,847
Adjust investments to market 520 384 7,681 5,205
144,051 47,408 7,681 5,205
Decrease due to:
Year-end encumbrances
Operating expenses 218,488 3,665
Capital outlays 14,244
Interest paid more than accrued
Amortized Bond premium/discount
Net OPEB Obligation 6,815
Principal paid
Capital outlays 289,158 5,800
521,890 16,280
Budget Basis $ 115,002 $ 4 $ 669)39 $ 352287
89
Equipment
ReQlacement
$ 30,976
290,881
501
12,232
4,061
307,675
5,900
121
472
40,000
221,079
267,572
$ 71,079
\0 o
Actuarial
Valuation
Date
2/28/2011
2/29/2012
2/28/2013
(a)
Actuarial
Value
Of Assets
$ 28,180,987
28,410,535
28,335,515
CITY OF CAPE GIRARDEAU, MISSOURI
Schedule of Funding Progress
June 30, 2013
(b) (b-a)
Entry Age Unfunded
Actuarial Accrued (alb)
Accrued Liability Funded
Liability (UAL) Ratio
$ 32,648,850 $ 4,467,863 86%
32,460,611 4,050,076 880/0
32,067,423 3,731,908 880/0
See Independent Auditors' Report.
[(b-a)/c )]
(c) UAL as a
Annual Percentage of
Covered Covered
Payroll Payroll
$ 13,842,403 32%
14,065,599 29%
14,371,681 26%
SUPPLEMENTAL INFORMATION
City of Cape Girardeau
Convention and Tourism
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 1,904,550.00 $ 1,904,550.00 $ 2,014,814.81 $ 110,264.81
Investment revenue 5,000.00 5,000.00 3,094.88 (1,905.12)
Total revenues 1,909,550.00 1,909,550.00 2,017,909.69 108,359.69
EXPENDITURES
Current:
Administrative 1,977,726.00 2,126,726.00 2,076,097.14 50,628.86
Total current 1,977,726.00 2,126,726.00 2,076,097.14 50,628.86
Debt Service:
Interest 500.00 500.00
Principal 102,500.00 102,500.00
-0
Total debt service 103,000.00 103,000.00
Total expenditures 1,977,726.00 2,229,726.00 2,179,097.14 50,628.86
Excess (deficiency) of revenues
over (under) expenditures (68,176.00) (320,176.00) __ (161,187.45) 158,988.55
Net change in fund balances (68,176.00) (320,176.00) (161,187.45) 158,988.55
Fund balances --beginning 441,578.77 441,578.77 441,578.77
Fund balances --ending $ 373,402.77 $ 121,402.77 $ 280,391.32 $ 158,988.55
See Independent Auditors' Report.
City of Cape Girardeau
Downtown Business District
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 25,500.00 $ 25,500.00 $ 25,960.25 $ 460.25
Investment revenue 500.00 500.00 712.40 212.40
Total revenues 26,000.00 26,000.00 26,672.65 672.65
EXPENDITURES
Current:
Development Services 16,000.00 16,000.00 7,807.51 8,192.49
Total current 16,000.00 16,000.00 7,807.51 8,192.49
Debt Service:
Interest 4,576.00 4,576.00 4,184.82 391.18
Principal 5,424.00 5,424.00 5,136.89 287.11
-...0 Total debt service 10,000.00 10,000.00 9,321.71 678.29
N
Total expenditures 26,000.00 26,000.00 17,129.22 8,870.78
Excess (deficiency) of revenues
over (under) expenditures 9,543.43 9,543.43
Net change in fund balances 9,543.43 9,543.43
Fund balances --beginning 47,078.15 47,078.15 47,078.15
Fund balances --ending $ 47,078.15 $ 47,078.15 $ 56,621.58 $ 9,543.43
See Independent Auditors' Report.
City of Cape Girardeau
Health
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 318,486.00 $ 318,486.00 $ 321,969.86 $ 3,483.86
Licenses & permits 3,800.00 3,800.00 4,465.00 665.00
Intergovernmental 7,950.00 7,950.00 8,728.25 778.25
Investment revenue 5,625.00 5,625.00 6,774.36 1,149.36
Total revenues 335,861.00 335,861.00 341,937.47 6,076.47
EXPENDITURES
Current:
Public Safety 342,860.00 374,335.00 369,645.73 4,689.27
Total current 342,860.00 374,335.00 369,645.73 4,689.27
-.0
l..;.) Total expenditures 342,860.00 374,335.00 369,645.73 4,689.27
Excess (deficiency) of revenues
over (under) expenditures (6,999.00) (38,474.00) (27,708.26) 10,765.74
Net change in fund balances (6,999.00) (38,474.00) (27,708.26) 10,765.74
Fund balances --beginning 488,375.65 488,375.65 488,375.65
Fund balances --ending $ 481,376.65 $ 449,901.65 $ 460,667.39 $ 10,765.74
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, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intergovernmental $ 1,745,049.00 $ 1,745,049.00 $ 1,386,898.29 $ (358,150.71 )
Investment revenue 3,300.00 3,300.00 6,884.63 3,584.63
Total revenues 1,748,349.00 1,748,349.00 1,393,782.92 (354,566.08)
EXPENDITURES
Capital outlay:
Public Works 400,049.00 400,049.00 44,643.41 355,405.59
Total capital outlay 400,049.00 400,049.00 44,643.41 355,405.59
Total expenditures 400,049.00 400,049.00 44,643.41 355,405.59
Excess (deficiency) of revenues
'-D over (under) expenditures +:-
1,348,300.00 1,348,300.00 1,349,139.51 839.51
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Special assessments 4,468.00 4,468.00 4,552.73 84.73
Transfers out (1,010,000.00) (1,010,000.00) (1,010,000.00)
Total other financing sources and uses and special items (1,005,532.00) (1,005,532.00) (1,005,447.27) 84.73
Net change in fund balances 342,768.00 342,768.00 343,692.24 924.24
Fund balances --beginning 252,038.52 252,038.52 252,038.52
Fund balances --ending $ 594,806.52 $ 594,806.52 $ 595,730.76 $ 924.24
See Independent Auditors' Report.
City of Cape Girardeau .
Capital Improvement Sales Tax-Water System Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 2,382,500.00 $ 2,382,500.00 $ 2,430,693.04 $ 48,193.04
Investment revenue 25,000.00 25,000.00 47,072.68 22,072.68
Total revenues 2,407,500.00 2,407,500.00 2,477,765.72 70,265.72
EXPENDITURES
Current:
Development Services: 42,550.00 82,350.00 79,376.22 2,973.78
Total current 42,550.00 82,350.00 79,376.22 2,973.78
\Q Debt service: Vl
Administrative charges 6,000.00 6,000.00 7,037.00 (1,037.00)
Interest 13,800.00 13,800.00 13,811.56 (11.56)
Principal 43,300.00 43,300.00 42,800.00 500.00
Total debt service 63,100.00 63,100.00 63,648.56 (548.56)
Total expenditures 105,650.00 145,450.00 143,024.78 2,425.22
Excess (deficiency) of revenues
over (under) expenditures 2,301,850.00 2,262,050.00 2,334,740.94 72,690.94
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in
Transfer out (4,631,281.00) (4,631,281.00) (1,721,903.34) 2,909,377.66
Total other financing sources and uses and special items (4,631,281.00) (4,631,281.00) (1,721,903.34) 2,909,377.66
Net change in fund balances (2,329,431.00) (2,369,231.00) 612,837.60 2,982,068.60
Fund balances -beginning 2,788,205.21 2,788,205.21 2,788,205.21
Fund balances --ending $ 458,774.21 $ 418,974.21 $ 3,401,042.81 $ 2,982,068.60
See Independent Auditors' Report.
'-0
0\
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, 2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
Investment revenue $ 1,860.00 $ 1,860.00 $ 2,274.59
Total revenues 1,860.00 1,860.00 2,274.59
EXPENDITURES
Debt service:
Administrative charges 450.00 450.00 239.48
Interest 2,522.00 3,022.00 3,035.18
Principal 123,000.00 123,000.00 123,000.00
Total debt service 125,972.00 126,472.00 126,274.66
Capital outlay:
Capital Improvement Projects
Total capital outlay
Total expenditures 125,972.00 126,472.00 126,274.66
Excess (deficiency) of revenues
over (under) expenditures (124,112.00) (124,612.00) (124,000.07)
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 40,000.00 40,000.00 40,000.00
Special assessments 29,400.00 29,400.00 29,528.76
Total other financing sources and uses and special items 69,400.00 69,400.00 69,528.76
Net change in fund balances (54,712.00) (55,212.00) (54,471.31)
Fund balances --beginning 66,604.00 66,604.00 66,604.00
Fund balances --ending $ 11,892.00 $ 11,392.00 $ 12,132.69
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
$ 414.59
414.59
210.52
(13.18)
197.34
197.34
611.93
128.76
128.76
740.69
$ 740.69
\0
-...l
City of Cape Girardeau
Capital Improvement Sales Tax-Sewer System Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
REVENUES
Taxes
Investment revenue
Total revenues
EXPENDITURES
Current
Development Services
Total current
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
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
Budgeted Amounts
Original
$ 2,382,500.00
37,500.00
2,420,000.00
42,550.00
42,550.00
42,550.00
2,377,450.00
2,377 ,450.00
2,337,257.32
$ 4,714,707.32
Final
$ 2,382,500.00
37,500.00
2,420,000.00
82,350.00
82,350.00
82,350.00
2,337,650.00
(2,482,614.00)
(2,482,614.00)
(144,964.00)
2,337,257.32
$ 2,192,293.32
0:::<><> Inrl<>n<>nrl<>nt Allrlitnrc:' R<>nnrt
Actual Amounts
$ 2,430,724.18
32,720.97
2,463,445.15
79,376.23
79,376.23
79,376.23
2,384,068.92
(2,482,614.00)
(2,482,614.00)
(98,545.08)
2,337,257.32
$ 2,238,712.24
Variance with
Final Budget -
Positive
(Negative)
$
$
48,224.18
(4,779.03)
43,445.15
2,973.77
2,973.77
2,973.77
46,418.92
46,418.92
46,418.92
-..0
00
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 30,2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
Investment revenue $ 2,142.00 $ 2,142.00 $ 4,043.74
Total revenues 2,142.00 2,142.00 4,043.74
EXPENDITURES
Capital outlay:
Capital Improvement Projects
Total capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures 2,142.00 2,142.00 4,043.74
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Special assessments 29,392.00 29,392.00 30,023.37
Transfers out (142,000.00) (142,000.00) (142,000.00)
Total other financing sources and uses and special items (112,608.00) (112,608.00) (111,976.63)
Net change in fund balances (110,466.00) (110,466.00) (107,932.89)
Fund balances --beginning 113,293.61 113,293.61 113,293.61
Fund balances --ending $ 2,827.61 $ 2,827.61 $ 5,360.72
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
$ 1,901.74
1,901.74
1,901.74
631.37
631.37
2,533.11
$ 2,533.11
\0
\0
City of Cape·Girardeau
Fire Sales Tax
Statement of Revenues, Expenditures, and Changes In Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
Taxes $ 2,287,200.00 $ 2,287,200.00 $ 2,353,418.57
Total revenues 2,287,200.00 2,287,200.00 2,353,418.57
EXPENDITURES
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures 2,287,200.00 2,287,200.00 2,353,418.57
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers out (2,287,000.00) (2,350,000.00) (2,347,287.56)
Total other finanCing sources and uses and special items (2,287,000.00) (2,350,000.00) (2,347,287.56)
Net change in fund balances 200.00 (62,800.00) 6,131.01
Fund balances --beginning 204,026.17 204,026.17 204,026.17
Fund balances --ending $ 204,226.17 $ 141,226.17 $ 210,157.18
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
$ 66,218.57
66,218.57
66,218.57
2,712.44
2,712.44
68,931.01
$ 68,931.01
City of Cape Girardeau
Public Safety Trust
Statement of Revenues, Expenditures, and Changes In Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Investment revenue $ 3,125.00 $ 3,125.00 $ 17,784.27 $ 14,659.27
Total revenues 3,125.00 3,125.00 17,784.27 14,659.27
EXPENDITURES
Current:
Public Safety 25,000.00 25,000.00 15,050.00 9,950.00
Total current 25,000.00 25,000.00 15,050.00 9,950.00
Debt service:
Administrative charges 500.00 500.00 500.00
0 Interest 106,805.00 106,805.00 106,276.83 0 528.17
Principal 603,992.00 603,992.00 603,991.94 0.06
Total debt service 711,297.00 711,297.00 710,268.77 1,028.23
Capital outlay:
Public Safety 226,100.00 226,100.00 223,758.41 2,341.59
Total capital outlay 226,100.00 226,100.00 223,758.41 2,341.59
Total expenditures 962,397.00 962,397.00 949,077.18 13,319.82
Excess (deficiency) of revenues
over (under) expenditures (959,272.00) (959,272.00) (931,292.91 ) 27,979.09
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 2,287,000.00 2,350,000.00 2,347,287.56 (2,712.44)
Asset disposition 2,906.55 2,906.55
Transfers out (1,318,979.00) (1,350,479.00) (1,349,122.78) 1,356.22
Total other financing sources and uses and special items 968,021.00 999,521.00 1,001,071.33 1,550.33
Net change in fund balances 8,749.00 40,249.00 69,778.42 29,529.42
Fund balances --beginning 882,344.68 882,344.68 882,344.68
Fund balances --ending _$ 891,0~3-"-~8 $ 922,593.68 $ 952,123.10 $ 29,529.42
See Independent Auditors' Report.
City of Cape Girardeau
Debt Service
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ $ $ $
Investment revenue 1,306.00 1,306.00 1,524.44 218.44
Total revenues 1,306.00 1,306.00 1,524.44 218.44
EXPENDITURES
Current:
Administrative
Debt Service
Total current
Debt service:
0 Administrative charges
Interest 656.00 656.00 716.62 (60.62)
Principal 32,000.00 32,000.00 32,000.00
Total debt service 32,656.00 32,656.00 32,716.62 (60.62)
Total expenditures 32,656.00 32,656.00 3~,716.62 (60.62)
Excess (deficiency) of revenues
over (under) expenditures (31,350.00) (31,350.00) (31,192.18) 157.82
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Special assessments 32,999.11 32,999.11 32,999.11
Total other financing sources and uses and special items 32,999.11 32,999.11 32,999.11
Net change in fund balances 1,649.11 1,649.11 1,806.93 157.82
Fund balances --beginning 24,204.18 24,204.18 24,204.18
Fund balances --ending $ 25,853.29 $ 25,853.29 $ 26,011.11 $ 157.82
See Independent Auditors' Report.
0
N
City of Cape Girardeau
General Capital Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
Intergovernmental $ $ $ 35,034.12
Investment revenue 2,500.00 2,500.00 2,181.60
Total revenues 2,500.00 2,500.00 37,215.72
EXPENDITURES
Capital outlay:
Capital Improvement Projects 203,000.00 213,782.53
Total capital outlay 203,000.00 213,782.53
Total expenditures 203,000.00 213,782.53
Excess (deficiency) of revenues
over (under) expenditures 2,500.00 (200,500.00) (176,566.81 )
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 120,000.00 120,000.00
Total other financing sources and uses and special items 120,000.00 120,000.00
Net change in fund balances 2,500.00 (80,500.00) (56,566.81 )
Fund balances --beginning 155,584.80 155,584.80 155,584.80
Fund balances --ending $ 158,084.80 $ 75,084.80 $ 99,017.99
See Independent Auditors' Report.
Variance with
Final Budget-
Positive
(Negative)
$ 35,034.12
(318.40)
34,715.72
(10,782.53)
(10,782.53)
(10,782.53)
23,933.19
23,933.19
$ 23,933.19
0 w
City of Cape Girardeau
Street Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
Investment revenue $ 4,750.00 $ 4,750.00 $ 4,346.16
Total revenues 4,750.00 4,750.00 4,346.16
EXPENDITURES
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures 4,750.00 4,750.00 4,346.16
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Special Assessments 9,206.00 9,206.00 11,767.29
Total other financing sources and uses and special items 9,206.00 9,206.00 11,767.29
Net change in fund balances 13,956.00 13,956.00 16,113.45
Fund balances --beginning 69,913.67 69,913.67 69,913.67
Fund balances --ending $ 83,869.67 $ 83,869.67 $ 86,027.12
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
$ (403.84)
(403.84)
(403.84)
2,561.29
2,561.29
2,157.45
$ 2,157.45
0
~
City of Cape Girardeau
Park Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
Intergovernmental $ 1,470,000.00 $ 1,470,000.00 $
Investment revenue 136.26
Total revenues 1,470,000.00 1,470,000.00 136.26
EXPENDITURES
Capital outlay
Capital Improvement Projects 1,470,000.00 1,470,000.00 4,210.12
Total capital outlay 1,470,000.00 1,470,000.00 4,210.12
Total expenditures 1,470,000.00 1,470,000.00 4,210.12
Excess (deficiency) of revenues
over (under) expenditures (4,073.86)
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 18,107.82
Total other financing sources and uses and special items 18,107.82
Net change in fund balances 14,033.96
Fund balances --beginning 10,365.28 10,365.28 10,365.28
Fund balances --ending $ 10,365.28 $ 10,365.28 $ 24,399.24
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
$ (1,470,000.00)
136.26
(1,469,863.74)
1,465,789.88
1,465,789.88
1,465,789.88
(4,073.86)
18,107.82
18,107.82
14,033.96
$ 14,033.96
0
!Jl
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 30,2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
I ntergovemmental $ $ $ (24,325.13)
Investment revenue 495.18
Total revenues (23,829.95)
EXPENDITURES
Current:
Development Services 4,500.00 (22,624.28)
Total current 4,500.00 __ (22,624.28)
Debt service:
Interest 500.00 133.29
Total debt service 500.00 133.29
Total expenditures 5,000.00 (22,490.99)
Excess (deficiency) of revenues
over (under) expenditures (5,000.00) (1,338.96)
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 212.98
Transfers out (2,246.00)
Total other financing sources and uses and special items (2,033.02)
Net change in fund balances (5,000.00) (3,371.98)
Fund balances -beginning 38,180.46 38,180.46 38,180.46
Prior period adjustment 1,000.00
Fund balances --ending $ 38,180.46 $ 33,180.46 $ 35,808.48
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
$ (24,325.13)
495.18
__ (23,829.95)
27,124.28
27,124.28
366.71
366.71
27,490.99
3,661.04
212.98
(2,246.00)
(2,033.02)
1,628.02
$ 1,628.02
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 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 4,574,400.00 $ 4,574,400.00 $ 4,706,917.11 $ 132,517.11
Intergovernmental 176,000.00 176,000.00 30,000.00 (146,000.00)
Investment revenue 25,000.00 25,000.00 23,937.94 (1,062.06)
Total revenues 4,775,400.00 4,775,400.00 4,760,855.05 (14,544.95)
EXPEN DITU RES
Current
Development Services 73,100.00 153,100.00 146,276.51 6,823.49
Total current 73,100.00 153,100.00 146,276.51 6,823.49
0 Capital outlay: 0\
Capital improvement projects 3,808,500.00 3,808,500.00 3,149,169.30 659,330.70
Total capital outlay 3,808,500.00 3,808,500.00 3,149,169.30 659,330.70
Total expenditures 3,881,600.00 3,961,600.00 3,295,445.81 666,154.19
Excess (deficiency) of revenues
over (under) expenditures 893,800.00 813,800.00 1,465,409.24 651,609.24
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 260,000.00 260,000.00 260,000.00
Total other financing sources and uses and special items 260,000.00 260,000.00 260,000.00
Net change in fund balances 1,153,800.00 1,073,800.00 1,725,409.24 651,609.24
Fund balances --beginning (738,088.73) (738,088.73) (738,088.73)
Fund balances --ending $ 415,711.27 $ 335,711.27 $ 987,320.51 $ 651,609.24
See Independent Auditors' Report.
o
-.J
City of Cape Girardeau
Park Storm Water Sales Tax
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
REVENUES
Taxes
Investment revenue
Total revenues
EXPENDITURES
Current:
Parks and Recreation
Total current
Capital outlay:
Parks and Recreation
Total capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers out
Total other financing sources and uses and speCial items
Net change in fund balances
Fund balances --beginning
Fund balances --ending
Budgeted Amounts
Original
$ 1,191,250.00
1,250.00
1,192,500.00
50,000.00
50,000.00
50,000.00
1,142,500.00
(1,128,044.00)
(1,128,044.00)
14,456.00
340,798.61
$ 355,254.61
Final
$ 1,191,250.00
1,250.00
1,192,500.00
39,770.50
39,770.50
39,770.50
1,152,729.50
(1,233,473.50)
(1,233,473.50)
(80,744.00)
340,798.61
$ 260,054.61
See Independent Auditors' Report.
Actual Amounts
$ 1,215,390.99
10,687.27
1,226,078.26
8,875.19
8,875.19
8,875.19
1,217,203.07
(1,097,172.54)
(1,097,172.54)
120,030.53
340,798.61
$ 460,829.14
Variance with
Final Budget -
Positive
(Negative)
$
$
24,140.99
9,437.27
33,578.26
(8,875.19)
(8,875.19)
39,770.50
39,770.50
30,895.31
64,473.57
136,300.96
136,300.96
200,774.53
200,774.53
City of Cape Girardeau
Park Storm Water Sales Tax~Capital
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ 3,573,750.00 $ 3,573,750.00 $ 3,646,172.91 $ 72,422.91
Investment revenue 12,500.00 12,500.00 35,913.50 23,413.50
Total revenues 3,586,250.00 3,586,250.00 3,682,086.41 95,836.41
EXPENDITURES
Debt service:
Administrative charges 4,000.00 4,000.00 2,873.75 1,126.25
Interest 531,532.00 531,532.00 531,531.26 0.74
Principal 1,955,000.00 1,955,000.00 1,955,000.00
Total debt service 2,490,532.00 2,490,532.00 2,489,405.01 1,126.99
0
00 Capital outlay:
Parks and Recreation 290,800.00 290,800.00 246,644.14 44,155.86
Total capital outlay 290,800.00 290,800.00 246,644.14 44,155.86
Total expenditures 2,781,332.00 2,781,332.00 2,736,049.15 45,282.85
Excess (deficiency) of revenues
over (under) expenditures 804,918.00 804,918.00 946,037.26 141,119.26
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 115,417.08 115,417.08
Asset disposition 2,775.00 2,775.00
Transfers out (804,918.00) (804,918.00) 804,918.00
Total other financing sources and uses and special items (804,918.00) (804,918.00) 118,192.08 923,110.08
Net change in fund balances 1,064,229.34 1,064,229.34
Fund balances --beginning 1,705,316.21 1,705,316.21 1,705,316.21
Fund balances --ending $ 1,705,316.21 $ 1,705,316.21 $ 2,769,545.55 $ 1,064,229.34
See Independent Auditors' Report.
0
'-0
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, 2013
Budgeted Amounts
Original Final Actual Amounts
REVENUES
Intergovernmental $ $ $ 183,631.94
Investment revenue 11.78
Total revenues 183,643.72
EXPENDITURES
Current:
Development Services 275,000.00 252,108.68
Total current 275,000.00 252,108.68
Debt service:
Interest 1,500.00 1,305.69
Total debt service 1,500.00 1,305.69
Total expenditures 276,500.00 253,414.37
Excess (deficiency) of revenues
over (under) expenditures (276,500.00) (69,770.65)
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 35,000.00 36,983.92
Total other financing sources and uses and special items 35,000.00 36,983.92
Net change in fund balances (241,500.00) (32,786.73)
Fund balances -beginning (19,103.14) (19,103.14) (19,103.14)
Fund balances --ending $ (19,103.14) $ (260,603.14) $ (51,889.87)
See Independent Auditors' Report.
Variance with
Final Budget -
Positive
(Negative)
$ 183,631.94
11.78
183,643.72
22,891.32
22,891.32
194.31
194.31
23,085.63
206,729.35
1,983.92
1,983.92
208,713.27
$ 208,713.27
City of Cape Girardeau
FAU Grant Projects
Statement of Revenues, Expenditures, and Changes In Fund Balances -. Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intergovernmental $ $ $ 67,274.81 $ 67,274.81
Investment revenue 816.20 816.20
Miscellaneous 1,679.73 1,679.73
Total revenues 69,770.74 69,770.74
EXPENDITURES
Capital outlay:
Capital Improvement Projects 165,000.00 172,628.14 (7,628.14)
Total capital outlay 165,000.00 172,628.14 (7,628.14)
Debt service:
Interest 2,000.00 1,543.59 456.41
Total debt service 2,000.00 1,543.59 456.41
0
Total expenditures 167,000.00 174,171.73 (7,171.73)
Excess (deficiency) of revenues
over (under) expenditures (167,000.00) (104,400.99) 62.599.01
Net change in fund balances (167,000.00) (104,400.99) 62,599.01
f Fund balances -beginning 163,897.25 163,897.25 163,897.25
Fund balances -ending $ 163,897.25 $ (3,102.75) $ 59,496.26 $ 62,599.01
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, 2013
Variance with
Budgeted Amounts Final Budget·
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intergovernmental $ $ $ $
Residential charges 4,760,000.00 4,760,000.00 4,764,705.70 4,705.70
Commercial charges 2,745,000.00 2,745,000.00 2,629,964.65 (115,035.35)
Other fees and charges 130,000.00 130,000.00 129,728.30 (271.70)
Internal charges 15,763.93 15,763.93
Miscellaneous 833.96 833.96
Investment revenue 55,768.00 55,768.00 149,155.70 93,387.70
Total revenues 7,690,768.00 7,690,768.00 7,690,152.24 (615.76)
EXPENDITURES
Current:
Contractual services 401,656.00 407,004.78 266,339.40 140,665.38
General operating expenses 425,516.00 425,516.00 448,789.13 (23,273.13)
Internal service expense 206,045.00 206,045.00 179,994.43 26,050.57
Material and supplies 530,440.00 537,110.92 640,867.76 (103,756.84 )
Personnel services 1,751,273.00 1,711,103.96 1,590,462.61 120,641.35
Special projects expense 18,000.00 18,000.00 7,796.73 10,203.27
Total current 3,332,930.00 3,304,780.66 3,134,250.06 170,530.60
Debt service:
Administrative charges 81,533.00 81,533.00 83,118.29 (1,585.29)
Interest 1,850,453.00 1,850,453.00 189,055.43 1,661,397.57
Issuance cost 247,019.10 (247,019.10)
Principal 1,618,478.00 1,618,478.00 2,288,500.00 (670,022.00)
Total debt service 3,550,464.00 3,550,464.00 2,807,692.82 742,771.18
Capital outlay:
Capital Improvement Projects 60,000,000.00 60,000,000.00 58,730,266.06 1,269,733.94
Equipment 233,450.00 270,666.01 807,442.25 (536,776.24)
Other Capital Expenditures 4,400,000.00 4,400,000.00 16,849.45 4,383,150.55
Total capital outlay 64,633,450.00 64,670,666.01 59,554,557.76 5,116,108.25
Total expenditures 71,516,844.00 71,525,910.67 65,496,500.64 6,029,410.03
Excess (deficiency) of revenues
over (under) expenditures (63,826,076.00) (63,835,142.67) (57,806,348.40) 6,028,794.27
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 278,661.00 2,761,275.00 2,783,081.28 21,806.28
Connection fees 75,000.00 75,000.00 91,505.58 16,505.58
Special assessments 3,536.00 3,536.00 3,526.89 (9.11)
Asset disposition 36,100.00 36,100.00 83,717.55 47,617.55
Bond proceeds 64,000,000.00 64,000,000.00 18,297,714.09 (45,702,285.91 )
Transfers out
Total other financing sources and uses and special items 64,393,297.00 ---ss.s75,911.00 21,259,545.39 (45,616,365.61 )
Net change in fund balances 567,221.00 3,040,768.33 (36,546,803.01 ) (39,587,571.34)
Fund balances -beginning 906,508.14 906,508.14 906,508.14
Prior period adjustment 5,563.86 5,563.86
Fund balances -ending $ 1,473,729.14 $ 3,947,276.47 $ (35,634,731.01) $ (39,582,007.48)
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, 2013
Variance with
Budgeted Amounts Final Budget"
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intergovernmental $ $ $ $
Residential charges 3,857,000.00 3,857,000.00 3,972,988.44 115,988.44
Commercial charges 2,657,000.00 2,657,000.00 2,612,630.50 (44,369.50)
Other fees and charges 185,000.00 185,000.00 242,740.08 57,740.08
Miscellaneous 16,080.00 16,080.00 58,273.42 42,193.42
Investment revenue 50,000.00 50,000.00 93,298.30 43,298.30
Total revenues 6,765,080.00 6,765,080.00 6,979,930.74 214,850.74
EXPENDITURES
Current:
Contractual services 2,673,318.00 2,678,318.00 2,690,322.92 (12,004.92)
General operating expenses 369,506.00 370,506.00 373,868.71 (3,362.71)
Internal service expense 122,718.00 122,718.00 132,312.20 (9,594.20)
Material and supplies 1,492,681.00 1,450,519.13 1,108,690.44 341,828.69
N Personnel services 291,053.00 291,053.00 240,046.57 51,006.43
Special projects expense 1,200,000.00 1,200,000.00 267,368.19 932,631.81
Total current 6,149,276.00 6,113,114.13 4,812,609.03 1,300,505.10
Debt service:
Administrative charges 470.00 470.00 287.38 182.62
Interest 510,181.00 510,181.00 292,465.63 217,715.37
Issuance cost 722.00 (722.00)
Principal 2,360,000.00 2,360,000.00 2,360,000.00
Total debt service 2,870,651.00 2,870,651.00 2,653,475.01 217,175.99
Capital outlay:
Capital Improvement Projects 350,000.00 330,000.00 480,364.55 (150,364.55)
Equipment 255,832.00 312,060.54 292,594.09 19,466.45
Other Capital Expenditures 5,284,300.00 5,284,300.00 53.37 5,284,246.63
Total capital outlay 5,890,132.00 5,926,360.54 773,012.01 5,153,348.53
Total expenditures 14,910,059.00 14,910,125.67 8,239,096.05 6,671,029.62
Excess (deficiency) of revenues
over (under) expenditures (8,144,979.00) (8,145,045.67) (1,259,165.31) 6,885,880.36
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 4,631,281.00 4,631,281.00 1,106,181.00 (3,525,100.00)
Investment revenue 231.00 231.00 179.00 (52.00)
Special assessments 1,064.00 1,064.00 723.77 (340.23)
Asset disposition 90,000.00 90,000.00 125,401.56 35,401.56
Total other financing sources and uses and special items 4,722,576.00 4,722,576.00 1,232,485.33 (3,490,090.67)
Net change in fund balances (3,422,403.00) (3,422,469.67) (26,679.98) 3,395,789.69
Fund balances --beginning 6,742,213.89 6,742,213.89 6,742,213.89
Prior period adjustment
Fund balances --ending $ 3,319,810.89 $ 3,319,744.22 $ 6,715,533.91 $ 3,395,789.69
See Independent Auditors' Report.
City of Cape Girardeau
Solid Waste
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget-
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intergovernmental $ 15,882.00 $ 15,882.00 $ $ (15,882.00)
Residential charges 2,291,320.00 2,291,320.00 2,312,441.39 21,121.39
Commercial charges 34,500.00 34,500.00 33,162.77 (1,337.23)
Transfer station charges 985,750.00 985,750.00 824,080.97 (161,669.03)
Other fees and charges 87,000.00 87,000.00 91,769.33 4,769.33
Miscellaneous 110,000.00 110,000.00 52,589.01 (57,410.99)
Investment revenue 15,000.00 15,000.00 14,929.58 (70.42)
Total revenues 3,539,452.00 3,539,452.00 3,328,973.05 (210,478.95)
EXPENDITURES
Current:
Contractual services 1,349,593.00 1,355,877.20 1,225,859.69 130,017.51
General operating expenses 33,326.00 33,326.00 42,803.19 (9,477.19)
Internal service expense 312,131.00 312,131.00 359,422.42 (47,291.42)
\.;j Material and supplies 280,364.00 272,425.46 266,509.55 5,915.91
Personnel services 1,122,805.00 1,122,805.00 1,070,476.74 52,328.26
Special projects expense 55,250.00 50,564.00 48,653.81 1,910.19
Total current 3,153,469.00 3,147,128.66 3,013,725.40 133,403.26
Debt service:
Administrative charges 500.00 500.00 261.25 238.75
Interest 65,007.00 65,007.00 40,569.66 24,437.34
Principal 212,508.00 212,508.00 212,508.06 (0.06)
Total debt service 278,015.00 278,015.00 253,338.97 24,676.03
Capital outlay:
Equipment 2,600.00 2,600.00 16,416.00 (13,816.00)
Other capital expenditures 14,000.00 10,890.00 3,110.00
Total capital outlay 2,600.00 16,600.00 27,306.00 (10,706.00)
Total expenditures 3,434,084.00 3,441,743.66 3,294,370.37 147,373.29
Excess (deficiency) of revenues
over (under) expenditures 105,368.00 97,708.34 34,602.68 (63,105.66)
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in
Asset disposition 28,098.00 28,098.00
Total other financing sources and uses and special items 28,098.00 28,098.00
Net change in fund balances 105,368.00 97,708.34 62,700.68 (35,007.66)
Fund balances --beginning 483,456.45 483,456.45 483,456.45
Fund balances --ending $ 588,824.45 $ 581,164.79 $ 546,157.13 $ (35,007.66)
See Independent Auditors' Report.
City of Cape Girardeau
Golf Course
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
User fees $ 445,200.00 $ 445,200.00 $ 437,708.82 $ (7,491.18)
Concession revenues 36,000.00 36,000.00 38,369.68 2,369.68
Miscellaneous 1,156.83 1,156.83
Investment revenue 500.00 500.00 633.30 133.30
Total revenues 481,700.00 481,700.00 477,868.63 (3,831.37)
EXPENDITURES
Current:
Contractual services 22,318.00 33,489.69 20,613.45 12,876.24
General operating expenses 9,390.00 9,390.00 8,717.24 672.76
Internal service expense 51,817.00 51,817.00 39,321.96 12,495.04
~ Material and supplies 105,927.00 118,355.31 110,732.88 7,622.43
Personnel services 379,370.00 390,370.00 390,940.84 (570.84)
Special projects expense 9,700.00 9,700.00 5,316.25 4,383.75
Total current 578,522.00 613,122.00 575,642.62 37,479.38
Debt service:
Interest 7,790.00 7,790.00 7,790.07 (0.07)
Principal 29,476.00 29,476.00 29,476.49 (0.49)
Total debt service 37,266.00 37,266.00 37,266.56 (0.56)
Capital outlay:
Other capital expenditures
Total capital outlay
Total expenditures 615,788.00 650,388.00 612,909.18 37,478.82
Excess (deficiency) of revenues
over (under) expenditures (134,088.00) (168,688.00) (135,040.55) 33,647.45
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 134,088.00 166,088.00 127,361.33 (38,726.67)
Asset disposition 10,071.22 10,071.22
Total other financing sources and uses and special items 134,088.00 166,088.00 137,432.55 (28,655.45)
Net change in fund balances (2,600.00) 2,392.00 4,992.00
Fund balances -beginning 14,593.18 14,593.18 14,593.18
Fund balances --ending $ 14,593.18 $ 11,993.18 $ 16,985.18 $ 4,992.00
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 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intergovernmental $ $ $ $
User fees 314,957.00 314,957.00 301,954.88 (13,002.12)
Concession revenues 79,560.00 79,560.00 75,677.97 (3,882.03)
Miscellaneous 11,083.00 11,083.00 6,098.58 (4,984.42)
Investment revenue 400.00 400.00 579.63 179.63
Total revenues 406,000.00 406,000.00 384,311.06 (21,688.94)
EXPENDITURES
Current:
Contractual services 31,821.00 31,821.00 27,343.64 4,477.36
General operating expenses 3,143.00 3,143.00 3,202.52 (59.52)
Internal service expense 35,208.00 35,208.00 35,025.70 182.30
Vl Material and supplies 154,936.00 182,136.00 160,008.63 22,127.37
Personnel services 617,858.00 617,858.00 608,864.77 8,993.23
Special projects expense 73,383.00 73,383.00 55,445.25 17,937.75
Total current 916,349.00 943,549.00 889,890.51 53,658.49
Debt service:
Interest 6,025.00 6,025.00 6,072.81 (47.81)
Principal 18,351.00 18,351.00 18,351.42 (0.42)
Total debt service 24,376.00 24,376.00 24,424.23 (48.23)
Capital outlay:
Other Capital Expenditures 29,260.00 43,346.95 (14,086.95)
Total capital outlay 29,260.00 43,346.95 (14,086.95)
Total expenditures 940,725.00 997,185.00 957,661.69 39,523.31
Excess (deficiency) of revenues
over (under) expenditures (534,725.00) (591,185.00) (573,350.63) 17.834.37
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 534,725.00 561,925.00 575,037.68 13,112.68
Asset disposition 6,660.00 6,660.00
Transfers out (3,417.95) (3,417.95)
Total other financing sources and uses and special items 534,725.00 561,925.00 578,279.73 16,354.73
Net change in fund balances (29,260.00) 4,929.10 34,189.10
Fund balances -beginning 3,146.57 3,146.57 3,146.57
Fund balances -ending $ 3,146.57 $ (26,113.43) $ 8,075.67 $ 34.189.10
See Independent Auditors' Report.
City of Cape Girardeau
Information Technology
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Intemal charges $ 570,000.00 $ 570,000.00 $ 570,000.00 $
Investment revenue 1,250.00 1,250.00 1,461.20 211.20
Total revenues 571,250.00 571,250.00 571,461.20 211.20
EXPENDITURES
Current:
Contractual services 138,478.00 461,093.00 488,883.01 (27,790.01)
General operating expenses 4,600.00 6,100.00 5,765.12 334.88
Material and supplies 89,415.00 173,415.00 128,295.71 45,119.29
Personnel services 235,001.00 235,001.00 224,002.60 10,998.40
Total current 467,494.00 875,609.00 846,946.44 28,662.56
0\
Capital outlay:
Equipment 118,909.00 393,269.00 291,988.19 101,280.81
Total capital outlay 118,909.00 393,269.00 291,988.19 101,280.81
Total expenditures 586,403.00 1,268,878.00 1,138,934.63 129,943.37
Excess (deficiency) of revenues
over (under) expenditures (15,153.00) (697,628.00) (567,473.43) 130,154.57
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in 682,475.00 682,475.00
Total other financing sources and uses and special items 682,475.00 682,475.00
Net change in fund balances (15,153.00) (15,153.00) 115,001.57 130,154.57
Fund balances --beginning 185,588.79 185,588.79 185,588.79
Fund balances --ending $ 170,435.79 $ 170,435.79 $ 300,590.36 $ 130,154.57
See Independent Auditors' 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, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Internal charges $ 1,237,500.00 $ 1,237,500.00 $ 1,256,872.90 $ 19,372.90
Miscellaneous
Investment revenue 4,555.00 4,555.00 4,690.30 135.30
Total revenues 1,242,055.00 1,242,055.00 1,261,563.20 19,508.20
EXPEN DITU RES
Current:
Contractual services 236,916.00 236,916.00 202,784.76 34,131.24
General operating expenses 4,850.00 4,850.00 2,312.77 2,537.23
-....l
Internal service expense 5,697.00 5,697.00 5,697.00
Material and supplies 330,591.00 418,191.00 426,622.89 (8,431.89)
Personnel services 647,383.00 647,383.00 620,351.14 27,031.86
Total current 1,225,437.00 __ 1,313,037.00 1,257,768.56 55,268.44
Debt service:
Interest 95.55 (95.55)
Total debt service 95.55 (95.55)
Capital outlay:
Equipment 17,500.00 17,500.00 17,500.00
Other capital expenditures 5,800.00 (5,800.00)
Total capital outlay 17,500.00 17,500.00 5,800.00 11,700.00
Total expenditures 1,242,937.00 1,330,537.00 1,263,664.11 66,872.89
Excess (deficiency) of revenues
over (under) expenditures (882.00) (88,482.00) (2,100.91) 86,381.09
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Asset disposition 15,342.00 15,342.00 17,448.90 2,106.90
Transfers out (15,342.00) (15,342.00) (15,343.59) (1.59)
Total other financing sources and uses and special items 2,105.31 2,105.31
Net change in fund balances (882.00) (88,482.00) 4.40 88,486.40
Fund balances --beginning 73,451.82 73,451.82 73,451.82
Fund balances --ending $ 72,569.82 $ (15,030.18) $ 73,456.22 $ 88,486.40
See Independent Auditors' Report.
City of Cape Girardeau
Fringe Benefits
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Internal charges $ 3,415,775.00 $ 3,415,775.00 $ 3,675,132.34 $ 259,357.34
Miscellaneous 240.53 240.53
Investment revenue 15,000.00 15,000.00 35,293.96 20,293.96
Total revenues __ 3_,430,775.00 3,430,775.00 3,710,666.83 279,891.83
EXPENDITURES
Current:
Contractual services 3,430,775.00 3,430,775.00 2,954,574.70 476,200.30
Total current 3,430,775.00 3,430,775.00 2,954,574.70 476,200.30
00 Total expenditures 3,430,775.00 3,430,775.00 2,954,574.70 476,200.30
Excess (deficiency) of revenues
over (under) expenditures 756,092.13 756,092.13
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers out (168,066.00) (168,066.00) (86,352.64) 81,713.36
Total other financing sources and uses and special items (168,066.00) (168,066.00) (86,352.64) 81,713.36
Net change in fund balances (168,066.00) (168,066.00) 669,739.49 837,805.49
Fund balances --beginning 1,909,226.95 1,909,226.95 1,909,226.95
Fund balances --ending $ 1,741,160.95 $ 1,741,160.95 $ 2,578,966.44 $ 837,805.49
See Independent Auditors' Report.
City of Cape Girardeau
Risk Management
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30,2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Internal charges $ 557,000.00 $ 557,000.00 $ 550,728.45 $ (6,271.55)
Investment revenue 18,750.00 18,750.00 21,990.24 3,240.24
Total revenues 575,750.00 575,750.00 572,718.69 (3,031.31)
EXPENDITURES
Current:
Contractual services 544,650.00 544,650.00 193,263.99 351,386.01
General operating expenses 28,600.00 28,600.00 27,167.67 1,432.33
Material and supplies 2,500.00 2,500.00 2,500.00
Total current 575,750.00
\0
575,750.00 220,431.66 355,318.34
Total expenditures 575,750.00 575,750.00 220,431.66 355,318.34
Excess (deficiency) of revenues
over (under) expenditures 352,287.03 352,287.03
Net change in fund balances 352,287.03 352,287.03
Fund balances -beginning 1,458,760.88 1,458,760.88 1,458,760.88
Fund balances -ending $ 1,458,760.88 $ 1,458,760.88 $ 1,811,047.91 $ 352,287.03
See Independent Auditors' Report.
City of Cape Girardeau
Equipment Replacement
Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual
For the Year Ended June 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Internal charges $ 304,089.00 $ 304,089.00 $ 307,616.54 $ 3,527.54
Investment revenue 13,750.00 13,750.00 16,793.79 3,043.79
Total revenues 317,839.00 317,839.00 324,410.33 6,571.33
EXPENDITURES
Current:
Material and supplies 7,981.09 (7,981.09)
Total current 7,981.09 (7,981.09)
Debt service:
Interest 1,450.00 1,450.00 1,450.00
tv Principal 40,000.00 40,000.00 40,000.00 0
Total debt service 41,450.00 41,450.00 41,450.00
Capital outlay:
Equipment 178,200.00 253,050.00 226,979.26 26,070.74
Total capital outlay 178,200.00 253,050.00 226,979.26 26,070.74
Total expenditures 219,650.00 294,500.00 276,410.35 18,089.65
Excess (deficiency) of revenues
over (under) expenditures 98,189.00 23,339.00 47,999.98 24,660.98
OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS
Transfers in
Asset disposition 3,800.00 3,800.00 23,078.76 19,278.76
Transfers out
Total other financing sources and uses and special items 3,800.00 3,800.00 23,078.76 19,278.76
Net change in fund balances 101,989.00 27,139.00 71,078.74 43,939.74
Fund balances --beginning 1,088,542.34 1,088,542.34 1,088,542.34
Fund balances --ending $ 1,190,531.34 $ 1,115,681.34 $ 1,159,621.08 $ 43,939.74
See Independent Auditors' Report.
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 30, 2013
Variance with
Budgeted Amounts Final Budget -
Positive
Original Final Actual Amounts (Negative)
REVENUES
Taxes $ $ $ $
Investment revenue 1,836.95 1,836.95
Total revenues 1,836.95 1,836.95
EXPENDITURES
Current:
Development Services 235,000.00 255,000.00 253,248.36 1,751.64
Interest 20.16 (20.16)
Principal
Total current 235,000.00 255,000.00 253,268.52 1,731.48
N
Capital outlay:
Capital Improvement Projects
Total capital outlay
Total expenditures 235,000.00 255,000.00 253,268.52 1,731.48
Excess (deficiency) of revenues
over (under) expenditures (235,000.00) (255,000.00) (251,431.57) 3,568.43
Net change in fund balances (235,000.00) (255,000.00) (251,431.57) 3,568.43
Fund balances --beginning 243,035.62 243,035.62 243,035.62
Fund balances --ending $ 8,035.62 $ (11,964.38) $ (8,395.95) $ 3,568.43
See Independent Auditors' Report.
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
BEUSSINK, HEY, ROE & STRODER, L.L.C.
DEBRA BEUSSINK EUDY, CPA
EVERETT E. HEY, CPA
JERRYW. ROE, CPA
Certified Public Accountants
16 South Silver Springs Road
Cape Girardeau, Missouri 63703
Telephone (573) 334-7971
Facsimile (573) 334-8875
JEFFREY C. STRODER, CPA
SCOTT J. ROE, CPA
DAVID E. PRASANPHANICH, CPA
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB CIRCULAR A-I33
Honorable Mayor and Members of the City Council
City of Cape Girardeau, Missouri
Report on Compliance for Each Major Federal Program
We have audited the City of Cape Girardeau, Missouri's compliance with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement that
could have a direct and material effect on each of the City of Cape Girardeau, Missouri's major
federal program for the year ended June 30, 2013. The City of Cape Girardeau, Missouri's
major federal program is identified in the summary of auditors' results section of the
accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts,
and grants applicable to its federal program.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for the City of Cape Girardeau,
Missouri's major federal program based on our audit of the types of compliance requirements
referred to above. We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standard, issued by the Comptroller General of the United
States; and OMB Circular A-I33, Audits of States, Local Governments, and Non-Profit
Organizations. Those standards and OMB Circular A-I33 require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City of Cape
Girardeau, Missouri's compliance with those requirements and performing such other procedures
as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the
major federal program. However, our audit does not provide a legal determination of the City of
Cape Girardeau, Missouri's compliance.
122
Opinion on the Major Federal Program
In our opinion, the City of Cape Girardeau, Missouri complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material effect
on its major federal program for the year ended June 30, 2013.
Report on Internal Control Over Compliance
Management of the City of Cape Girardeau, Missouri is responsible for establishing and
maintaining effective internal control over compliance with the types of compliance
requirements referred to above. In planning and performing our audit of compliance, we
considered the City of Cape Girardeau, Missouri's internal control over compliance with the
types of requirements that could have a direct and material effect on a major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for its major federal program and to test and report on
internal control over compliance in accordance with OMB Circular A-133, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City of Cape Girardeau,
Missouri's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other
purpose.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
December 31,2013
123
BEUSSINK, HEY, ROE & STRODER, L.L.C.
DEBRA BEUSSINK EUDY, CPA
EVERETT E. HEY, CPA
JERRY W. ROE, CPA
Certified Public Accountants
16 South Silver Springs Road
Cape Girardeau, Missouri 63703
Telephone (573) 334-7971
Facsimile (573) 334-8875
JEFFREY C. STRODER, CPA
SCOTT J. ROE, CPA
DAVID E. PRASANPHANICH, CPA
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members of the City Council
City of Cape Girardeau, Missouri
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the City of Cape Girardeau, Missouri as of and for the
year ended June 30, 2013, and the related notes to the financial statements, which collectively
comprise the City of Cape Girardeau, Missouri's basic financial statements, and have issued our
report thereon dated December 31, 2013.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Cape
Girardeau, Missouri's internal control over financial reporting (internal control) to determine the
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City of Cape Girardeau, Missouri's internal control. Accordingly, we do not
express an opInIon on the effectiveness of the City of Cape Girardeau, Missouri's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or 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. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
124
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or, significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Cape Girardeau, Missouri's
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
~, ~I ~ ,t ~, I..L.C.
Cape Girardeau, Missouri
December 3 1, 2013
125
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2013
Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number Disbursements
U.S. DEPARTMENT OF DEFENSE:
Loan of DOD Property (non-cash) 12. N/A $ 100,000
U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT:
Passed Through Missouri Department of
Economic Development-
Community Development Block Grants/
State's Program and Non-Entitlement 14.228 2004-ND-05 $ 20,400
Grants in Hawaii 2010-DT-OI 87,451 $ 107,851
Passed Through Missouri Department of
Social Services -
Emergency Shelter Grants Program 14.231 EROl640905 $ 9,746
Passed Through Missouri Housing
Development Commission 13-709-E 31,839 41,585
Passed Through Missouri Housing Development
Commission -
Home Investment Partnerships Program 14.239 M-Il-SG-29-0100 87,611
TOTAL U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT $ 237,047
U.S. DEPARTMENT OF JUSTICE:
Passed Through Missouri Department of
Public Safety -
Violence Against Women Formula Grants 16.588 2010-VAWA-091-0S $ 34,292
Bulletproof Vest Partnership Program 16.607 N/A 3,779
Passed Through the City of Poplar Bluff, Missouri -
Passed through the Southeast Missouri Drug
Task Force-
Public Safety Partnership and Community
Policing Grants 16.710 N/A 7,829
ARRA -Edward Byrne Memorial Justice
Assistance Grant Program/Grants to Units of
Local Governments 16.804 2009-SB-B9-2229 $ 15,204
2011-DJ-BX-2958 31,136
2012-DJ-BX-0197 27,315 73,655
TOTAL U.S. DEPARTMENT OF JUSTICE $ 119,555
The Accompanying Notes to Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
126
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30,2013
Federal
CFDA Program
Federal GrantorlPass-Through Grantor Program Title Number Number
U.S. DEPARTMENT OF TRANSPORTATION:
Passed Through Missouri Department of
Transportation -
Airport Improvement Program 20.106 12-077A-l
Highway Planning and Construction 20.205 JOI0767A DP-1503(003) $
SRTS-NI-H300(502)
DP-1500(020)
STP-1500(021 )
SRTS-INF-H280( 1 06)
SRTS-INF-H31 H( 1 03)
State and Community Highway Safety 20.600 12-PT -02-028 $
13-PT -02-128
12-SA-09-002
13-SA-09-002
12-CP-09-00 I
l3-CP-09-00 I
13-0P-05-003
13-0P-05-008
Alcohol Open Container Requirements 20.607 12-154-AL-029 $
13-154-AL-025
12-154-AL-083
12-154-AL-031
TOTAL U.S. DEPARTMENT OF TRANSPORTATION
ENVIRONMENTAL PROTECTION AGENCY:
Passed Through Missouri Department of Natural
Resources -
Capitalization Grants for Clean Water State
Revolving Funds (I) 66.458 C295531-01 $
C295531-02
C295531-03
Passed Through Missouri Environmental Improvement
and Energy Resources Authority -
Brownfields Assessment and Cleanup
Cooperative Agreements 66.818 N/A
TOT AL ENVIRONMENTAL PROTECTION AGENCY
The Accompanying Notes to Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
127
Disbursements
$ 24,013
1,458,462
5,891
50,324
5,794
21,680
15.824 1,557,975
6,898
2,145
12,682
39,250
86,257
55,501
2,294
229 205,256
2,364
2,103
795
1,013 6,275
$ 1,793,519
18,050,714
242,000.00
5,000.00 $ 18,297,714
1,763
$ 18,299.477
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2013
Federal Grantor/Pass-Through Grantor Program Title
US. DEPARTMENT OF ENERGY
ARRA -Energy Efficiency and Conservation
Block Grant Program (EECBG)
Federal
CFDA
Number
81.128
US. DEPARTMENT OF HEALTH AND HUMAN SERVICES:
Passed Through the Community Caring Counsel -
Substance Abuse and Mental Health Services-
Projects of Regional and National Significance 93.243
U.S. DEPARTMENT OF HOMELAND
SECURITY:
Passed Through Missouri State Emergency
Management Agency -
Disaster Grants -Public Assistance (Presidentially
Declared Disasters) 97.036
Assistance to Firefighters Grant 97044
Passed Through Missouri State Emergency
Management Agency -Citizen Community
Resilience Innovation Challenge 97.053
Passed Through Missouri State Emergency
Management Agency -Homeland
Security Grant Program 97067
Law Enforcement Officer Reimbursement
Agreement Program 97.090
TOTAL US. DEPARTMENT OF HOMELAND
SECURITY
TOT AL FEDERAL AWARDS
(I) Identified major program.
Program
Number
G 10-EECBG-02-097939524
SDA42070104
#FEMA-1980-DR-MO
EMW-2011-FO-06441
EMW-2011-SS-00003
20 I O-SS-TO-0039
HSTS0208HSLR050
The Accompanying Notes to Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
128
Disbursements
$ 4,419
$ 2,296
$ 9,000
54,618
2,808
22,107
$ 27,374
$ 115,907
$ 20672 220
City of Cape Girardeau, Missouri
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
Year Ended June 30, 2013
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Purpose of Schedule and Reporting Entity:
The accompanying Schedule of Expenditures of Federal Awards has been prepared to
comply with OMB Circular A-I33. This circular requires a Schedule of Expenditures of
Federal Awards showing total expenditures for each federal financial assistance program
as identified in the Catalog of Federal Domestic Assistance (CFDA) and identification of
programs that have not been assigned a CFDA number as ""Other Federal Assistance".
The schedule includes all expenditures of federal awards administered by the City.
B. Basis of Presentation:
The Schedule is presented in accordance with OMB Circular A-I33, 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.
129
City of Cape Girardeau, Missouri
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2013
l. SUMMARY OF AUDITORS' RESULTS:
Financial Statements
Type of Auditors' report issued: Unqualified
Internal control over financial reporting:
• Material weaknesses identified?
• Significant deficiencies identified that are not
considered to be material weaknesses?
Noncompliance material to financial statements
noted?
Federal Awards
Internal control over major programs:
• Material weaknesses identified?
• Significant deficiencies identified that are not
considered to be material weaknesses?
__ yes X no
__ yes X none reported
__ yes X no
__ yes X no
__ yes X none reported
Type of Auditors' report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to be
reported in accordance with Section 51 O(a) of Circular
A-133? __ yes
130
X no
Identification of major programs.
Name of Federal Program CFDA Number
66.458 Capitalization Grants for Clean Water
State Revolving Funds
Dollar threshold used to distinguish
between type A and type B pro grams:
Auditee qualified as low-risk auditee:
2. FINANCIAL STATEMENT FINDINGS:
$300,000
~yes __ no
No findings or questioned costs were noted that are required to be reported.
3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS:
No findings or questioned costs were noted that are required to be reported.
131
City of Cape Girardeau, Missouri
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 30, 2013
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
l. FINANCIAL STATEMENT FINDINGS:
No Findings were noted that are required to be reported.
2. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS:
No Federal findings were reported in the prior year.
132