HomeMy WebLinkAbout2014-2015.AuditReport
CITY OF CAPE GIRARDEAU, MISSOURI
Cape Girardeau, Missouri
For the Year Ended June 30, 2015
ANNUAL FINANCIAL REPORT
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 4-20
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 21-22
STATEMENT OF ACTIVITIES 23-24
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
BALANCE SHEET 25-26
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION 27
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES 28
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES 29
PROPRIETARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 30-31
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
FUND NET POSITION 32
STATEMENT OF CASH FLOWS 33-34
FIDUCIARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 35
NOTES TO BASIC FINANCIAL STATEMENTS 36-79
REQUIRED SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL 80
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – AIRPORT 81
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK & RECREATION 82
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CASINO REVENUE 83
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX TRUST
FUND III 84
NOTES TO BUDGETARY COMPARISON SCHEDULES 85-88
SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CONVENTION AND TOURISM 89
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – DOWNTOWN BUSINESS DISTRICT 90
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HEALTH 91
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – MOTOR FUEL TAX 92
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX –
WATER SYSTEM IMPROVEMENTS 93
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX
TRUST FUND 94
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX –
SEWER SYSTEM IMPROVEMENTS 95
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX TRUST FUND II 96
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FIRE SALES TAX 97
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST 98
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – DEBT SERVICE 99
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL CAPITAL IMPROVEMENTS 100
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – STREET CAPITAL IMPROVEMENTS 101
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK CAPITAL IMPROVEMENTS 102
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – COMMUNITY DEVELOPMENT BLOCK
GRANT PROJECTS 103
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGE IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX TRUST
FUND IV 104
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK STORM WATER SALES TAX 105
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK STORM WATER SALES TAX - CAPITAL 106
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HOUSING DEVELOPMENT GRANTS 107
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – STP-URBAN GRANT PROJECT 108
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SEWER 109
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WATER 110
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SOLID WASTE 111
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GOLF COURSE 112
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SPORTING COMPLEXES 113
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – INFORMATION TECHNOLOGY 114
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FLEET MANAGEMENT 115
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – EMPLOYEE BENEFITS 116
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WORKER’S COMPENSATION 117
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL EQUIPMENT REPLACEMENT 118
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND
ACTUAL – RIVERFRONT REGION ECONOMIC
DEVELOPMENT 119
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST FUND II 120
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – GENERAL DIVISION 121
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – POLICE DIVISION 122
SCHEDULE OF CHANGES IN THE NET PENSION LIABILILTY
AND RELATED RATIOS – FIRE DIVISION 123
SCHEDULE OF EMPLOYER CONTRIBUTIONS 124
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY OMB CIRCULAR A-133 125-126
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS 127-128
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 129-131
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 132
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 133-136
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 137
1
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Cape Girardeau, Missouri
Report on the Financial Statements
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, as of and for the year ended June 30, 2015, and the related
notes to the financial statements, which collectively comprise the City of Cape Girardeau,
Missouri’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 from 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 City’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 City’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 accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
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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, 2015, 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 20 and 80 through 88 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
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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 basic
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
February 11, 2016, on our consideration of the City of Cape Girardeau, Missouri’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 of Cape Girardeau, Missouri’s
internal control over financial reporting and compliance.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
February 11, 2016
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CAPE GIRARDEAU, MISSOURI
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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, 2015. 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
The assets and deferred outflows of the City
of Cape Girardeau exceeded its liabilities at
the close of the most recent fiscal year by
$314,152,314.44 (net position). Of this
amount, $66,798,537.76 (unrestricted net
position) may be used to meet the City’s
ongoing obligations to citizens and creditors.
As of the close of the current fiscal year, the
City of Cape Girardeau’s governmental funds
reported combined ending fund balances of
$41,841,251.33. Approximately 6.5 percent
of this total amount, $2,731,862.99 is
available for spending at the government’s
discretion (unassigned fund balance).
At the end of the current fiscal year, the
unassigned fund balance for the general fund
was $2,731,862.99 or 9.8 percent of total
general fund expenditures and transfers.
At the end of the current fiscal year, general
fund balance reserved for emergencies was
$4,481,729.00 or 16.1 percent of total general
fund expenditures and transfers.
o The City of Cape Girardeau’s fixed assets
increased $21,238,439.27 during the year.
Net fixed asset additions of $34,667,410.27
were made during the year. Depreciation for
the current fiscal year reduced fixed assets by
$13,428,971.00.
The City of Cape Girardeau’s total long-term
debt increased by $4,486,443.67 (4.6 percent)
during the current fiscal year. During the year
the City received disbursements totaling
$12,156,055.49 from loans through the state
revolving loan program. These loans are
being used to fund costs related to current
construction at the new wastewater treatment
plant and continuation of the City’s Inflow &
Infiltration reduction program.
Regularly scheduled principal payments and
amortization of bond premiums / discounts
resulted in outstanding long-term debt being
reduced by $7,669,611.82.
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 position presents
information on all the City’s assets, deferred
outflows, and liabilities, with the difference
between the total of assets and deferred outflows
and liabilities reported as net position. Over
time, increases or decreases in net position 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 position changed
during the most recent fiscal year. All changes
in the net position 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
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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
21 to 24 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.
The City of Cape Girardeau maintains 35
individual governmental funds. Information is
presented separately in the governmental fund
balance sheet and in the governmental fund
statement of revenues, expenditures, and changes
in fund balances for the general, airport, parks
and recreation, 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 presented as supplemental information.
The basic governmental fund financial
statements can be found on pages 25 to 29 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
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The basic proprietary fund financial statements
can be found on pages 30 to 34 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 36 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over
time as a useful indicator of a government’s
financial position. The City of Cape Girardeau’s
assets and deferred outflows exceeded its
liabilities by $314,152,314.44, an increase of
$32,696,487.29 (11.6%). The City’s net
investment in capital assets (land, buildings,
machinery, and equipment less related
outstanding debt used to acquire those assets) of
$239,112,508.66 makes up 76.1% of the City’s
net position.
This net investment increased $12,560,122.42
(5.5%) 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.
In 2008, the Main Street Levee and Improvement
District and the North Main Street Levee and
.
Improvement District transferred a floodwall to
the City. During the current year this asset was
recorded as a prior period adjustment at
$11,122,485.37, its June 30, 2014 book value.
This significantly impacted the City’s net
investment in capital assets
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 (2.6
percent) represents 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 $80,692.87 (1.0%) more
than the previous year. The remaining balance of
net assets ($66,798,537.76) is unrestricted and
may be used to meet the City’s ongoing
obligations to citizens and creditors. This reflects
a $20,055,672.00 (42.9%) increase over the
previous year. This increase was significantly
impacted by an $8,898,304 prior period
adjustment to record the City’s 6/30/14 pension
related net assets as required by the
implementation of GASB Statement No. 68.
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 Position
Governmental Business-type
Activity Activities Total
2015 2014 2015 2014 2015 2014
Current and other assets 57,778,805.60 47,529,113.40 23,929,757.64 22,439,925.27 81,708,563.24 69,969,038.67
Capital assets 182,283,980.73 170,953,665.64 162,700,700.04 152,792,575.86 344,984,680.77 323,746,241.50
Total assets 240,062,786.33 218,482,779.04 186,630,457.68 175,232,501.13 426,693,244.01 393,715,280.17
Deferred outflows 2,566,023.73 - 354,020.27 - 2,920,044.00 -
Long-term liabilities 15,508,515.52 18,294,510.68 81,907,076.53 76,235,517.62 97,415,592.05 94,530,028.30
Current liabilities 6,160,909.27 6,350,267.09 11,884,472.25 11,379,157.63 18,045,381.52 17,729,424.72
Total liabilities 21,669,424.79 24,644,777.77 93,791,548.78 87,614,675.25 115,460,973.57 112,259,453.02
Net position:
Invested in capital assets,
Net of related debt 163,824,387.91 152,494,072.82 75,288,120.75 74,058,313.42 239,112,508.66 226,552,386.24
Restricted 5,074,186.02 5,189,433.15 3,167,082.00 2,971,142.00 8,241,268.02 8,160,575.15
Unrestricted 52,060,811.34 36,154,495.30 14,737,726.42 10,588,370.46 66,798,537.76 46,742,865.76
Total net position 220,959,385.27 193,838,001.27 93,192,929.17 87,617,825.88 314,152,314.44 281,455,827.15
CITY OF CAPE GIRARDEAU, MISSOURI
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Governmental Activities. Governmental activities increased the City of Cape Girardeau’s net position by
$8,804,214.65 (compared to $9,566,579.31 in the previous fiscal year), thereby accounting for 65.5 percent of the
total growth in the net position of the City. Governmental activities accounted for 55.4% of its $15,906,316.04
increase in unrestricted net position.
City of Cape Girardeau's Change in Net Assets
Governmental Business-type
activities activities Total
2015 2014 2015 2014 2015 2014
Revenues:
Program revenue:
Charges for service 4,860,707.25 4,844,836.93 17,538,252.57 17,847,281.93 22,398,959.82 22,692,118.86
Operating grants and
contributions 1,553,178.28
1,013,113.77 1,020.00 14,168.11 1,554,198.28
1,027,281.88
Capital grants and
contributions 2,089,054.24 2,069,419.05
1,566,030.12 386,732.41 3,655,084.36 2,456,151.46
General revenues:
Property taxes 2,228,303.05 2,188,736.30 - - 2,228,303.05 2,188,736.30
Sales taxes 27,690,472.08 26,698,005.01 - - 27,690,472.08 26,698,005.01
Other taxes 13,578,026.97 13,312,931.00 - - 13,578,026.97 13,312,931.00
Other 759,386.03 146,748.95 335,904.03 320,676.33 1,095,290.06 467,425.28
Special item - - - - - -
Total revenues 52,759,127.90 50,273,791.01 19,441,206.72 18,568,858.78 72,200,334.62 68,842,649.79
Expenses:
Administrative 3,100,622.60 3,184,373.73 - - 3,100,622.60 3,184,373.73
Capital Improvements 973,033.38 610,145.55 - - 973,033.38 610,145.55
Development Services 5,854,606.64 6,294,240.09 - - 5,854,606.64 6,294,240.09
Interest and other costs 617,889.91 723,040.06 - - 617,889.91 723,040.06
Parks and Recreation 5,127,838.00 5,130,026.42 - - 5,127,838.00 5,130,026.42
Public Safety 13,903,548.61 13,560,885.70 - - 13,903,548.61 13,560,855.70
Public Works 8,199,066.78 8,034,915.59 - - 8,199,066.78 8,034,915.59
Sewer - - 8,125,842.41 6,542,500.17 8,125,842.41 6,542,500.17
Water - - 7,831,517.08 6,994,762.21 7,831,517.08 6,994,762.21
Solid Waste - - 3,257,215.29 3,557,378.36 3,257,215.29 3,557,378.36
Golf Course - - 679,453.56 701,911.73 679,453.56 701,911.73
Sporting Complexes - - 1,095,071.90 1,084,071.29 1,095,071.90 1,084,071.29
Total expenses 37,776,605.92 37,537,627.14 20,989,100.24 18,880,623.76 58,765,706.16 56,418,250.90
Increase in net position
before transfers 14,982,521.98 12,736,163.87 (1,547,893.52) (311,764.98) 13,434,628.46
12,424,398.89
Transfers (6,178,307.33) (3,169,587.56) 6,178,307.33 3,169,587.56 - -
Increase in net position 8,804,214.65 9,566,576.31 4,630,413.81 2,857,822.58 13,434,628.46 12,424,398.89
Net position-beginning of year 193,838,001.27 184,473,693.33 87,617,825.88 84,707,960.69 281,455,827.15 269,181,654.02
Prior period adjustments 18,317,169.35 (202,268.37)
944,689.48 52,042.61 19,261,858.83
(150,225.76)
Net position-end of year 220,959,385.27 193,838,001.27 93,192,929.17 87,617,825.88 314,152,314.44 281,455,827.15
CITY OF CAPE GIRARDEAU, MISSOURI
8
Activity in the following revenue and expense items should be noted for the current fiscal year:
Revenues from governmental activities
• Charges for service were $15,870.32 (0.3%) more the previous year. During the current year, administrative
and parks and recreation revenues increased $119,783.35 (7.0%) and $116,413.53 (7.8%), respectively, over the
previous year. Included in this year’s administrative revenue was a $155,693.25 distribution from a bankruptcy
case regarding unpaid lease payments and a $44,752.36 (5.5%) decline from the previous year’s municipal
court-related revenues.
The major impacts to parks and recreation revenues were increases of $41,875.80 (18.5%), $59,295.44 (12.4%),
and $65,459.92 (71.7%) over the previous revenues associated with the Osage Center, Cape Splash, and internal
revenues from salaries charged out to various capital projects. The increase in Osage Center revenue reflected
increased activity over the previous year while Cape Splash revenue reflected May 2015 rate increases.
During the current year, development service, public safety, and public works revenues declined $166,023.73
(11.2%), $14,593.94 (14.7%), and $39,708.89 (73.6%), respectively, from the previous year. Development
service revenues from the Cape Girardeau Regional Airport decreased $136,217.04 (17.5%) from the previous
year. During the current year, special event fees decreased $145,520.38 as a result of not having an air show.
Decreases of revenue from the airport’s FBO operations of $13,758.54 (3.8%) were offset with increases of
revenue from leases at the airport of $22,541.80 (9.0%). Remaining development service revenue declined
$29,806.69 (4.2%) from the previous year.
Changes to public safety and public works revenues mainly resulted from changes in fire protection fees and
internal revenues from services provided by public works.
• Operating grants and contributions were $540,064.51 (53.3%) more than the previous year. Almost all of this
increase related to a pass-through grant to Southeast Missouri State University for a business incubator project.
• Capital grants and contributions increased $19,635.19 (.9%) from the previous year. During the current year the
city received grants and contributions totaling $61,217.90, $471,291.15, $826,225.87, $501,249.15,
$44,161.91 and $80,626.79 for a t-hangar/taxiway project at its airport, park trail projects, the
business infrastructure project, various street projects, two safe routes to school projects, and various
public safety equipment purchases, respectively. In the prior year, the City received $616,769.10,
$113,377.45, $57,278.13, $973,401.84, $118,578.18 and $105,253.66, respectively, for these items.
• Property tax revenue was $39,566.75 (1.8%) more than the previous year. Assessed values finalized by the
board of equalization increased $9,748,607 (2.0%) and $4,740,694 (4.3%) for real estate and personal property,
respectively. New construction of $7,899,480 was included in the real estate increase. The City’s general tax
levy rate remained the same as the previous year during the current year.
• Sales tax revenue was 52.5% of the total revenue during the current year versus 53.1% in the previous year.
This year’s revenue was $992,467.07 (3.7%) more than the previous year. From fiscal year ending June 30,
2011 through fiscal year ending June 30, 2015, sales tax revenue, adjusted for new taxes, had annual growth
rates of 2.0%, 4.9%, 4.6%, 0.7% and 3.7%, respectively.
• Other taxes increased $265,095.97 (2.0%) from the previous year. Gaming taxes, motor fuel taxes, convention
and tourism taxes, and liquor licenses grew $199,760.25 (6.1%), $48,541.56 (3.4%), $116,601.92 (5.8%) and
$3,193.54 (4.6%), respectively. Franchise taxes, merchant licenses, and cigarette taxes declined $58,929.72
(1.2%), $35,792.97 (2.6%) and $8,278.61 (4.7%), respectively, from the previous year.
• Gaming revenue received by the general fund increased $67,924.52 (2.1%) over the previous year, while
gaming revenue received by the riverfront development fund increased $131,835.73 (233.3%) over the previous
year. This was the first full year of revenue for the riverfront development fund.
CITY OF CAPE GIRARDEAU, MISSOURI
9
Revenues from governmental activities (continued)
• Ameren paid 71.5% of the total franchise tax collected during the year based on its electricity and natural gas
revenues. During the current year, Ameren paid $61,754.72 (1.7%) less than the previous year. Payments
received on electricity and natural gas sales decreased $43,819.97 (1.6%) and $17,934.75 (2.2%), respectively,
from the previous year. Average monthly electric and natural gas rates were 1.2% more and 1.5% less,
respectively, during the current year when compared to the previous year.
• During the current year, the City received payments in lieu of gross receipt franchise taxes totaling $662,260.80
from its water and sewer funds. This was $20,060.98 (2.9%) less than the previous year. There were no
changes to the sewer and water rates during the current year. Sewer and water utility revenues were 2.6% and
2.3% less than the previous year.
• Franchise tax paid during the current year by the City’s telecommunication and cable TV service providers
increased $5,951.16 (1.9%) and $16,934.82 (4.0%), respectively, from the previous year.
• The increase in the convention and tourism taxes was comprised of increases of $48,727.93 (7.2%) and
$67,873.99 (5.1%) to revenues from the hotel / motel and restaurant taxes, respectively, over the previous year.
• Other revenue, which increased $612,637.08 (417.5%) from the previous year to $759,386.03, was comprised
of unrestricted grants and contributions, investment earnings, and gain (loss) on sales of assets, which totaled
$52,801.35, $607,557.43, and $99,027.25, respectively, during the current year. These revenues grew (declined)
$(5,573.37) (9.5%), $86,253.87 (16.5%), and $531,956.58 (122.9%), respectively, from the previous year.
During the previous year, the City sold 18 acres from its business park at a loss of $472,425.48. This site will be
used as a regional distribution center by Pepsi MidAmerica.
Expenses from governmental activities
• Total government activities expenses increased $238,978.78 (.6%) over the previous year. Personnel costs
accounted for 50.2% of the total governmental activity expenses. Operating expenses and interest and other
costs accounted for 48.2% and 1.6% of the total governmental activity expenses, respectively. 26.0% of the
personnel costs were for benefits and the remaining was for salaries including vacation and sick leave expense.
Salary expenses increased $514,426.63 (3.8%) during the current year, while benefit expenses decreased
$108,498.46 (2.7%). Operating expenses and interest and other costs decreased $61,799.24 (.3%) and
$105,150.15 (14.5%) during the current year.
Full-time, part-time, and overtime salaries increased $434,372.81 (3.7%), $24,574.59 (2.4%), and $55,479.23
(7.6%), respectively, over the previous year during the current year. The current year included a 2.0% beginning
of the year wage increase and a May 1, 2015 wage increase at an estimated cost of $92,707.00 to implement a
new pay plan. The cost of providing retirement benefits was $147,842.32 less this year from the previous year.
During the current year, the City implemented GASB 68, a new accounting principle related treatment of
pension expenses. The current year’s pension expense was reduced by $203,476.51 as a result of this
implementation.
Vehicle fuel expense decreased $104,265.45 (21.4%) from the previous year during the current year as a result
of significantly lower fuel prices. Administrative, development services, parks and recreation, public safety,
and public works vehicle fuel expenses were reduced $722.19 (19.8%), $8,412.31 (22.8%), $13,725.90
(20.3%), $60,569.55 (20.5%), and $20,835.50 (24.8%), respectively during the current year.
CITY OF CAPE GIRARDEAU, MISSOURI
10
Expenses from governmental activities (continued)
• Administrative expenses totaled $3,100,622.60 (8.2% of total government activities) this year, which was
$83,751.13 (2.6%) less than the previous year. Personnel costs accounted for 51.6% of the total administrative
expenses. 23.2% of the personnel costs were for benefits and the remaining was for salaries including vacation
and sick leave expense. Salary expenses increased $47,155.51 (3.7%) during the current year while benefit
expenses decreased $2,317.32 (0.6%). Operating expenses decreased $128,589.32 (8.3%) during the current
year.
In the previous year, the City spent $55,392.10 to demolish the building that previously housed the Convention
and Visitors Bureau to provide additional downtown parking and $47,928.31 for leadership training for its
department leaders and community partners. Only $2,009.17 was spent on these items during the current year.
Depreciation expense was $35,555.25 (8.4%) less than the previous year during the current year.
• Development services expenses totaled $5,854,606.64 (15.5% of total government activities) this year, which
was $439,633.45 (7.0%) less than the previous year. Personnel costs accounted for 36.3% of the total
development services expenses. 23.7% of the personnel costs were for benefits and the remaining was for
salaries including vacation and sick leave expense. Salary expenses increased $81,101.32 (4.6%) during the
current year, while benefit expenses decreased $49,647.83 (9.2%). Operating expenses decreased $471,086.94
(11.8%) during the current year.
In the previous year, the City spent $191,746.12 from the airport fund on costs related to an air show and
$1,293,080.64 from its convention and tourism taxes to pay principal and interest on bonds issued by the
University to fund construction costs related its River Campus. During the current year, the University returned
$19,037.68 of these payments.
During the current year, the City spent $92,727.60, $73,000.00, and $47,677.03, respectively, on grant funded
runway improvements, preliminary design of improvements to Cape Splash, and a future facility study. Only
$12,063.65 was spent on these items in the previous year. Additionally, the City distributed a $500,000.00 pass
through grant to the University for its Business Incubator Project and began paying leases for downtown
parking and 2 airport fuel trucks at a total cost of $37,000. No costs were incurred on these items in the
previous year.
The following are other significant operating increases (decreases) over the previous year:
Economic development payments from sales tax rebates $98,054.09 (21.0%) increase
Support of Old Towne Cape $60,800.00 (152.0%) increase
Housing rehab grant related expenses $112,361.28 (114.4%) increase
Emergency housing grant related expenses $60,839.36 (25.7%) decrease
Convention and Tourism Bureau operating contract $72,612.00 (12.0%) increase
• Parks and recreation expenses totaled $5,127,838.00 (13.6% of total government activities) this year, which was
$2,188.42 (<.1%) less than the previous year. Personnel costs accounted for 54.0% of the total parks and
recreation expenses. 21.3% of the personnel costs were for benefits and the remaining was for salaries including
vacation and sick leave expense. Salary expenses increased $62,359.80 (2.9%) during the current year, while
benefit expenses decreased $39,111.19 (6.6%). Operating expenses decreased $25,437.03 (1.1%) during the
current year.
CITY OF CAPE GIRARDEAU, MISSOURI
11
Expenses from governmental activities (continued)
The following are significant operating increases (decreases) over the previous year:
Building repairs and maintenance $16,892.15 (48.6%) increase
Transaction charges $13,859.14 (97.1%) increase
Natural gas at Central Pool $20,686.04 (28.7%) decrease
Special events costs $23,590.75 (26.5%) increase
Special project costs $16,333.81 (210.9%) increase
Legal claims expense $31,957.08 (79.9%) decrease
Depreciation expense $56,910.47 (5.7%) decrease
• Public safety expenses totaled $13,903,548.61 (36.8% of total government activities) this year, which was
$342,662.91 (2.5%) more than the previous year. Personnel costs accounted for 79.2% of the total public safety
expenses. 29.2% of the personnel costs were for benefits and the remaining was for salaries including vacation
and sick leave expense. Salary and benefit expenses increased $302,920.14 (4.0%) and $22,778.72 (0.7%),
respectively, during the current year. Operating expenses increased $16,964.05 (.6%) during the current year.
In the previous year, the City spent $57.589.20 for grant funded paramedic training and testing supplies and
$32,227.99 for preliminary design costs for a new police station. Only $52.12 was spent on these two items
during the current year. In previous years, medical services to prisoners were provided by City staff. During
the second half of this year, this service was contracted to a third party. Amounts paid for this service during
the current year was $10,116.37.
The following are other significant operating increases (decreases) over the previous year:
Ammunition costs $12,307.59 (94.5%) increase
Demolition of dangerous buildings $46,083.25 (292.5%) increase
Specialized training costs $19,056.85 (79.4%) increase
Protective attire $25,415.63 (44.9%) decrease
Small equipment $68,732.29 (41.8%) increase
• Public works expenses totaled $8,199,066.78 (21.7% of total government activities) this year, which was
$164,151.19 (2.0%) more than the previous year. Personnel costs accounted for 14.0% of the total public works
expenses. 29.2% of the personnel costs were for benefits and the remaining was for salaries including vacation
and sick leave expense. Salary expenses increased $20,889.86 (2.6%) during the current year, while benefit
expenses decreased $40,200.84 (12.2%). Operating expenses increased $183,462.17 (2.7%) during the current
year.
Severe winter weather resulted in street repair and maintenance and snow and ice removal supply costs
increasing $197,645.44 (117.8%) over the previous year. Fleet maintenance costs increased $41,615.47 (22.0%)
over the previous year. Depreciation expense was $51,907.37 (0.9%) less than the previous year during the
current year.
• Capital improvements expenses totaled $973,033.38 this year, which was $362,887.83 (59.5%) more than the
previous year. The current year included $745,032.36 in street, curb, and gutter repairs and $167,460.58 for
temporary construction easements, professional services, and other costs paid by the City for an Army Corp of
Engineer flood wall project. This year’s street, curb, and gutter repair costs were $346,777.40 (87.4%) more
than the previous year. The remaining current year costs totaling $60,540.44 represent 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).
CITY OF CAPE GIRARDEAU, MISSOURI
12
The illustration above makes it clear that all the governmental activities and business-type activities of the City, with
the exception of sewer and solid waste, required a subsidy by taxpayers. General revenues in these activities, which
include transfers from special revenue sales taxes, were sufficient to provide adequate subsidies for both the
governmental and business-type activities.
Revenues by Source –
Governmental Activities
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 (52.5%),
other taxes (25.7%) and charges for services
(9.2%).
The City’s general sales tax represents 36.7% of
the total sales tax revenue and 46.5% 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 48.1% and 52.8%
of the other tax and service charge revenue,
respectively. This represents 29.9% and 11.7%
of the total general fund revenues, respectively.
Business-type activities
During the current year, business-type activities
increased the net position of the City by $4,630,413.81.
During the previous year, these activities increased the
City’s net position by $2,857,822.58. Business-type
activities before transfers decreased the City’s net
position by $1,547,893.52 during the current year. In
the previous year, these activities decreased the City’s
net position by $311,764.98.
During the current year, there were net transfers from
the governmental activities to business-type activities of
$6,178,307.33. In the previous year, there were net
transfers from governmental activities to business- type
activities of $3,169,587.56.
Transfers of $1,627,500.00 in sales tax revenue and
$504,817.85 in general fund revenues to fund bond
payments and operating subsidy transfers from the
general and parks / storm water sales tax funds totaling
$1,195,495.00 were made during the current year. Last
year these transfers totaled $1,500,000.00 and
$1,065,527.58, respectively. During the current year,
capital improvements totaling $975,617.45 were
transferred to the sewer and sports complexes funds
from the casino revenue and capital project funds. Last
year these transfers were $598,869.98 from the capital
project funds only. During the current year, the
business activities received $73,156.69 of net transfers
related to assets transferred to or from other
governmental activities. Transfers of $1,532,000 and
$269,720.34 were received from the capital
improvement sales tax – water and employee fringe
benefit funds, respectively, to fund water fund
construction projects and special payments to the city’s
retirement plan, respectively.
- 1,500,000 3,000,000 4,500,000 6,000,000 7,500,000 9,000,000 10,500,000 12,000,000 13,500,000
Administrative
Development Serv
Parks & Recreation
Public Safety
Public Works
Water
Sewer
Solid Waste
Golf Course
Sporting Complexes Expense
Revenue
Other taxes
25.7%
Sales taxes
52.5%
Other
1.3%
Charge for
Service
9.2%
Operating
grants
3.1%
Capital
grants
4.0%
Property
taxes
4.2%
Revenues for governmental activities
CITY OF CAPE GIRARDEAU, MISSOURI
13
The net change in assets before transfers and
general revenues in the sewer, water, solid waste,
golf, and softball operations totaled $406,551.84,
$(1,453,641.15), $84,956.09, $(204,157.44), and
$(717,506.89), respectively, this year. This
compares to $989,694.25, $(492,495.93),
$(185,241.84), $(221,539.12), and (722,858.67),
respectively, in the previous year.
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, 2015, the City’s governmental
funds reported combined ending fund balances
of $41,841,251.33, an increase of $3,451,198.60
(9.0%) from the prior year. Unassigned fund
balances, which are available for spending at the
City’s discretion, account for $2,731,862.99
(6.5%) of the total fund balances.
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, 2015: (1) $808,551.30 is
classified as nonspendable because it is either (a)
not in spendable form or (b) legally or
contractually required to be maintained intact (2)
$32,594,647.87 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) $4,490,647.60
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)
$1,215,541.57 is classified as assigned because its
expenditure is constrained by the City’s intent to use
it for specific purposes.
The general fund is the chief operating fund of the
City. At the end of fiscal year ending June 30, 2015,
unassigned fund balance of the general fund was
$2,731,862.99, while total fund balance was
$7,690,024.95. 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. Unassigned fund balance
represents only 9.8% of total general fund
expenditures including transfers. However, included
in the reserved fund balance is $4,481,729.00, which
had been reserved to meet the City Charter’s
emergency reserve requirement. This amount
represents 16.1% 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 decreased by $699,623.07 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 decrease of $154,438.19. Differences
between the amounts reflected in the two statements
can be found in the Notes to Budgetary Comparison
Schedules found on pages 85 – 88.
The original adopted general fund budget for the
fiscal year ending June 30, 2015 had expenditures
exceeding revenues by $247,419.00. The actual
general fund results decreased fund balances by
$154,438.19. Significant deviations from this budget
are detailed below:
o Sales tax revenue was $355,935.85 (3.6%)
more than the previous year, which was
$138,934.16 (1.4%) more than projected for the
adopted budget. The adopted budget projected
revenues that were 3.0% above the actual fiscal
year ending June 30, 2014 revenues. Actual
revenues grew 0.8% during the previous year.
Franchise tax revenue was $183,854.08
(3.8%) more than projected for the adopted
budget. Franchise taxes from electric utilities,
Capital
grants
8.3%
Charge
for
Service
90.0%
Other
1.7%
Revenues for business-type activities
CITY OF CAPE GIRARDEAU, MISSOURI
14
natural gas utilities, telecommunications,
and cable TV, and the City’s water and
sewer service exceeded their budgets by
$55,066.86 (2.1%), $106,393.11 (15.1%),
$24,070.70 (8.2%) and $24,437.61 (5.9%),
respectively. Franchise tax from the City’s
water and sewer service were $26,114.20
(3.8%) below their projected budget.
During the current year, Ameren paid
$61,754.72 (1.7%) less than the previous
year. Payments received on electricity and
natural gas sales decreased $43,819.97
(1.6%) and $17,934.75 (2.2%),
respectively, from the previous year.
Average monthly electric and natural gas
rates were 1.2% more and 1.5% less,
respectively, during the current year when
compared to the previous year. Projections
used in the current year’s budget had
assumed average electric and natural gas
usage from the three years ending
December 31, 2013 and rates that were in
effect on February 1, 2014.
During the current year, the City
received payments in lieu of gross receipts
franchise taxes from its water and sewer
funds totaling $662,260.80. This was
$20,060.98 (2.9%) less than the previous
year. The amount of payments in lieu of
franchise taxes projected for the current
year’s budget were based on projected
sewer and water revenues, which had been
based on projected usage from fiscal year
ending June 30, 2014 and no sewer or
water rate changes.
Franchise tax paid during the current
year by the City’s telecommunication
service providers increased $5,951.16
(1.9%) from the previous year. The amount
of projected franchise tax used in the
current year’s budget was based on
projected revenues for fiscal year ending
June 30, 2014. Actual revenue during that
year exceeded the projected revenues used
in the budget by $18,119.54 (6.1%).
Franchise tax paid during the current
year by the City’s cable TV service
provider increased $16,934.82 (4.0%) from
the previous year. The amount of projected
franchise tax used in the current year’s
budget was based on annualized revenue
received during the quarter ended September
30, 2013 plus 3%.
Property tax revenue increased $34,611.86
(1.9%) over the previous year and was
$43,132.54 (2.4%) more than the projected
budget. Assessed values finalized by the board
of equalization increased $9,748,607 (2.0%)
and $4,740,694 (4.3%) for real estate and
personal property, respectively. New
construction of $7,899,480 was included in the
real estate assessed value increase. The adopted
budget for the fiscal year ending June 30, 2015
had assumed 2.0% and 1.0% assessed value
growth for real estate and personal property,
respectively, and no levy increases. The City’s
general tax levy rate did not increase during the
current year.
Business license revenue decreased
$35,936.93 (2.7%) from the previous year and
was $56,885.47 (4.2%) less than the projected
budget. The adopted budget projected revenues
that were 1.5% greater than projected fiscal
year ending June 30, 2014 revenues. Actual
revenue for fiscal year ending June 30, 2014
was $1,561.17 (0.1%) less than had been
assumed by the budget projections.
Other license and permit revenue was
$11,035.96 (4.4%) more than the previous year
but was $13,024.26 (4.7%) less than the
projected budget.
Intergovernmental revenue exceeded
revenue projected for the budget by
$224,958.85 (45.6%). This year’s
intergovernmental revenue included $88,667.14
in revenues from various public safety capital
grants and $172,215.97 for emergency shelter
grants. None of these of these revenues had
been projected in the current year’s budget.
The current budget projected $445,593.00 in
grants for operating expenses of public safety.
Actual revenue was $37,830.20 (8.5%) less
than this amount during the current year and
reflected corresponding reductions in grant
related expenses.
Service charges were $16,262.28 (7.8%)
less than the previous year and were $46,813.42
(19.6%) less than projected in the budget.
Court costs were $8,145.61 (10.7%) less than
the previous year and were $39,231.43 (57.9%)
less than projected in the budget.
CITY OF CAPE GIRARDEAU, MISSOURI
15
o Fines and forfeits revenue was
$36,606.75 (4.9%) less than the previous
year and was $317,033.50 (31.0%) less
than projected in the budget. The adopted
budget for fiscal year ending June 30, 2015
had assumed revenue levels equal to the
9.4% above the actual revenue for fiscal
year ending June 30, 2013. The number of
traffic cases heard by the municipal court
in fiscal year ending June 30, 2015 was
37.8% less than those heard in fiscal year
ending June 30, 2013.
During the current fiscal year, total
expenditures were $259,123.66 (1.2%)
more than the original budget. Operating
expenditures were $107,288.42 (0.5%) less
than their original budget. Actual debt
service and capital expenditures exceeded
their original budgets by $272,302.22
(174.7%) and $94,109.86 (452.5%).
Transfers to other funds for operating
subsidies were $990,621.96 (25.9%) more
than original budget, and transfers for
capital expenditures exceeded their original
budgets by $140,798.67 (349.4%).
Operating transfers to the public safety
trust and solid waste funds exceeded their
original budgets by $476,574.11 and
$505,000.00, respectively. The original
budget had not accounted for the renewal
of a fire sales tax, which is required to be
transferred to the trust fund, and had not
accounted for a transfer to the solid waste
fund that was used to repay an advance
from the general fund.
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 $2,130,795.30 (8.0%)
more than the original adopted budget. The
changes that were appropriated by the City
Council can be summarized as follows:
Administrative – $25,739.54 for costs related to
legal advice, unanticipated municipal election, and
implementation of pay and benefits study.
Development Services – $205,751.49 for costs
related to grant funded community assistance
expenditures, implementation of pay and benefits
study, a parking lot lease, and vehicle purchase.
Public Safety – $240,179.49 for grant costs related
to various public safety operating grants and the
purchase of radios and other equipment;
implementation of pay and benefits study; HVAC
repairs at Fire Station #1; purchase various items for
the School Resource Officers; preliminary costs for
an interoperable radio project; and firefighter classes.
Parks and Recreation - $27,105.94 to pay for the
implementation of pay and benefits study and to
purchase various capital items.
Public Works – $242,227.00 for the cost of
additional street supplies and for the implementation
of pay and benefits study.
Other Debt - $273,000.00 for the early payoff of a
2006 promissory note.
General Fund Transfer to Airport Fund –
$100,000.00 to cover operating shortfall.
General Fund Transfer to Parks and Recreation
Fund – $10,000.00 to cover operating subsidy
shortfall.
General Fund Transfer to Public Safety Trust
Fund - $420,000.00 as required by the Fire Sales
Tax.
General Fund Transfer to Housing Development
Grants Fund – $3,000.00 to cover costs not
reimbursed by grants.
General Fund Transfer to Sewer Fund -
$9,178.78 to purchase 2 vehicles from sewer fund.
General Fund Transfer to Water Fund -
$9,334.20 to purchase vehicle from water fund.
General Fund Transfer to Solid Waste Fund -
$505,000.00 to fund the repayment to the general
fund of a long-term advance.
General Fund Transfer to Sports Complex Fund
– $60,000.00 to cover operating subsidy shortfall
and $278.86 to purchase vehicle from that fund.
CITY OF CAPE GIRARDEAU, MISSOURI
16
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 30, 2015
amounts to $344,984,680.77 (net of accumulated
depreciation). This investment in capital assets
includes all land, buildings and system
improvements, machinery and equipment, and
infrastructure owned by the City.
City Capital Assets
Major capital asset events during the current
fiscal year included the following:
Construction costs totaling $1,308,230.28
on approved transportation sales tax
projects were incurred this year. This tax
was originally approved to complete a
specific list of street construction, street
repair and overlay, and sidewalk
construction and repair projects.
$16,303.34 spent to complete a new 10-
unit T-Hangar at the Airport, which was
partially funded by MODOT.
Department of Transportation funds were
used to partially fund the $491,769.32
spent to expand the City’s trail system.
$1,171,658.49 in funds received from the Isle
of Capri helped improve lighting along Main
Street, provide sewer service at the new
business park, emergency battery backup for
traffic signals, a Powerhouse energy manager
for Osage, and various computer equipment
and software items.
Construction costs totaling $898,359.44 on
various water system projects were incurred
this year. Major water system improvements
included the installation of a new water tank,
two new booster pump stations, various water
distribution improvements, the addition of
water main extensions, and the continuation
of the two-inch water main replacement
program.
Costs totaling $111,540.89 were incurred for
sidewalk construction for the safe routes to
school program. These costs were almost
entirely funded by the Department of
Transportation.
In April 2008, voters approved a ½ cent sales
tax to pay for storm water and park
improvement projects. $433,804.50 and
$493,950.40 were spent respectively during
the current year on these projects.
Costs totaling $8,309,659.59 related to the
new Wastewater Treatment Plant were
incurred this year and funded by the State
Revolving Loan Program.
Other sewer projects amounted to
$3,775,382.64 in capital expenditures during
the current year. Projects included a storm
water sewer system, a sewer lift station, a
wastewater scada upgrade, and continuation of
the Inflow & Infiltration reduction program.
Work at the new Business Park totaled
$2,408,088.11. These projects are still under
construction and will include new sewers,
streets, water mains, street lights, sidewalks,
and storm sewers.
Additional information about the City’s capital assets
can be found in note D to the financial statements.
3.1%
59.1%
34.7%
3.1%
Land
Buildings/Equipment
Infrastructure
Construction in
Progress
CITY OF CAPE GIRARDEAU, MISSOURI
17
Long-term debt.
At the end of the fiscal year, the City of Cape
Girardeau had total debt outstanding of
$101,688,334.08. Bonded debt outstanding
totaling $87,666,458.40 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. Outstanding debt of the City
increased by $4,486,443.67 (4.6%) during the
year.
During the year, the City received disbursements
totaling $12,156,055.49 from loans through the state
revolving loan program. These loans are being used
to fund costs related to current construction at the
new wastewater treatment plant and continuation of
the City’s Inflow & Infiltration reduction program.
Regularly scheduled principal payments and
amortization of bond premiums / discounts resulted
in outstanding long-term debt being reduced by
$7,669,611.82.
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
Activity Activities Total
2015 2014 2015 2014 2015 2014
Notes payable
3,969,933.66
4,770,438.97
-
690,092.88 3,969,933.66 5,460,531.85
Special obligation
bonds
1,148,227.65
2,409,586.95 560,538.00 722,446.98 1,708,765.65 3,132,033.93
Revenue bonds 806,300.00 851,000.00
86,860,158.40 77,329,757.73 87,666,458.40 78,180,757.73
Leasehold
revenue bonds
8,343,176.37
10,428,566.90 - - 8,343,176.37 10,428,566.90
14,267,637.68
18,459,592.82
87,420,696.40 78,742,297.59
101,688,334.08 97,201,890.41
City of Cape Girardeau's Capital Assets
(net of depreciation)
Governmental Business-type
Activity Activities Total
2015 2014 2015 2014 2015 2014
Land 10,117,070.83 9,523,689.30 649,917.54 647,165.04 10,766,988.37 10,170,854.34
Buildings and
system
improvements 20,589,455.03 20,783,013.56 1,984,568.59 2,277,877.35 22,574,023.62 23,060,890.91
Improvements
other than
buildings 19,411,780.52 9,153,015.04 152,069,859.54 87,065,544.71 171,481,640.06 96,218,559.75
Equipment 5,851,220.69 5,579,516.79 3,906,471.15 3,963,959.07 9,757,691.84 9,543,475.86
Infrastructure 119,667,592.25 122,977,025.08 - - 119,667,592.25 122,977,025.08
Construction
in progress 6,646,861.41 2,937,405.87 4,089,883.22 58,838,029.69 10,736,744.63 61,775,435.56
Total 182,283,980.73 170,953,665.64 162,700,700.04 152,792,575.86 344,984,680.77 323,746,241.50
CITY OF CAPE GIRARDEAU, MISSOURI
18
Economic Factors and the Next Year’s Budget
Residential development increased significantly
during the past year. Values of residential
permits issued during the year were 60.8%
higher than the previous year and were at their
highest levels since fiscal year ending June 30,
2007. Commercial development decreased
dramatically during the current year. Values of
commercial permits issued during the year were
78.4 % lower than the previous year. Last year,
commercial development was at its strongest
level in the past 25 years. This year’s
commercial development was at its lowest levels
since fiscal year ending June 30, 2005.
Commercial and residential permits valued at
$20.2 million and $19.3 million were issued this
year. Commercial and residential permits valued
at $93.4 million and $12.0 million were issued in
the previous year. In the current year, 41 single
family residence, 8 two family residence, and 4
apartment building permits totaling $9,225,500,
$2,569,000 and $6,375,500, respectively, were
issued. In the previous year, 43 single family
residence, 2 two family residence, and 1
apartment building permits totaling $9,279,000,
$660,000 and $800,000, respectively, were
issued.
Local employment continues to be stronger than
national employment. The Cape Girardeau
County unadjusted unemployment rate was only
3.9% in October 2015. Statewide and national
unadjusted unemployment rates were 4.3% and
4.8%, respectively, for this month. The
unadjusted unemployment rates were 4.5%,
5.1% and 5.5% for the county, state, and nation,
respectively, for the previous October. City
construction projects and private development
provide significant support to local construction
employment.
Pepsi MidAmerica completed construction of its
$3,100,000 distribution center and began hiring.
The company expects to produce 74 new jobs.
The new center will consist of three structures on
an 18 acre site at the City’s new business park
and will distribute a wide array of beverages and
products from their snacks division.
In October 2015, plans were announced to
demolish the Drury Lodge and restaurant and
replace it with a new 168 room hotel and
restaurant. Additionally, a new $11 million
convention center will be built on the hotel site.
During the year, the following economic
development activity took place in Cape Girardeau
and its surrounding communities:
• Buchheits, a regional retail chain, acquired a
54,000 square foot building to be used as a
distribution center. 25 new jobs are expected to
be created.
• Old Hickory Pits breaks ground for a new
facility. 8 new jobs are expected to be created.
• Two local manufacturers added lines to their
operation that are expected to create 35 new jobs.
• Verdesian purchased a 400,000 square foot
facility for expansion of its manufacturing
operations. 25 new jobs are expected to be
created.
• Purchase Clinic announced a new sales and
customer service office in downtown Cape
Girardeau. 12 new professional jobs are expected
to be created.
Local 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 3.6%, while
inflation grew at 0.7%. In the previous year, sales tax
revenue from the general sales tax increased .8%,
while inflation grew at 1.6 %.
The City’s restaurant gross receipt tax and
hotel/motel gross receipt tax increased 5.1% and
7.2%, respectively, during the current year. In the
previous year, they decreased .2% and increased
1.1%, respectively.
Regional Retail Center
The City is heavily dependent on sales tax revenue
for support of its general fund services. Above
average growth of local retail sales can have a
positive impact on the City’s ability to fund services
in the future.
During the year, the following retail development
activity took place in Cape Girardeau:
Ruler Foods opened its 20,000 square foot store in
September 2014. Ruler Foods is a division of Kroger.
Wal-Mart opened its 40,000 square foot Wal-Mart
Neighborhood Market store at the site of the former
Plaza Galleria building on January 28. 2015.
Dunkin Donuts announced an expansion of its Cape
Girardeau operations, which is expected to create 15
new jobs.
CITY OF CAPE GIRARDEAU, MISSOURI
19
Cape Girardeau continues to be a regional retail
center for much of Southeast Missouri and
Southern Illinois. Since 2012 the City has
increased its share of the local retail market.
However, it appears that the City’s share of the
local retail market may be leveling off.
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 last
two years, it appears that the trend of the City
increasing its share of the local market may be
ending.
Local Economic Development
In the previous 10 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.
Payment made by the City pursuant to these
agreements totaled $564,075 during the current
year. Payments totaling $2,499,619 have been
made since the beginning of these agreements.
During the year, the City spent $66,978 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.
The City is actively marketing its new 247.43 acre
business park site located along I-55 around the
LaSalle interchange. This site was purchased in
February, 2013 by the Southeast Missouri State
University Foundation. The land will be used for
future business development and is best suited for
distribution centers, light manufacturing, technology-
related businesses, and retail development.
During the past two years, the City has spent
$3,597,486 for road, sidewalk, traffic control, sewer,
water, electrical, and natural gas infrastructure at the
site.
Revenue Limitations
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.
Budget for fiscal year ending June 30, 2016 and
financial condition
The adopted general fund budget for the fiscal year
ending June 30, 2016, was projected to produce a
$124,379 deficit and included a 1.7% wage increase
effective July 1, 2015. Projected revenues used in
preparing the budget were based on conservative
revenue assumptions.
The approved general fund budget projected the use
of $138,783 prior year’s unassigned fund balance to
increase the emergency reserve fund balance by
$14,404 and fund $124,379 in one-time operating
expenses.
The City’s current financial position has improved
substantially during the past five 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 five years. However,
it is still less than desirable. Funding of equipment
for the general and airport fund excluding police, fire,
and various park divisions is still not at desired
levels.
SALES TAX COMPARISON
FY12 FY13 FY14 FY15
Cape Girardeau 42.4% 44.0% 43.8% 43.7%
Carbondale 27.4% 26.7% 26.4% 26.1%
Jackson 9.6% 9.3% 9.6% 9.6%
Perryville 7.2% 7.2% 7.2% 7.4%
Sikeston 13.4% 12.8% 13.0% 13.2%
100.0% 100.0% 100.0% 100.0%
CITY OF CAPE GIRARDEAU, MISSOURI
20
Requests for Information
This financial report is designed to provide a
general overview of the City of Cape Girardeau’s
finances for all those with an interest in the
City’s finances. Questions concerning any of the
information provided in this report or requests
for additional financial information should be
addressed to the Finance Director, City of Cape
Girardeau, PO Box 617, Cape Girardeau, MO
63702-0617.
BASIC FINANCIAL STATEMENTS
Governmental
Activities
Business-type
Activities Total
ASSETS
Current assets:
Pooled cash and investments $ 43,725,724.85 $ 12,568,595.53 $ 56,294,320.38
Cash and cash equivalents 81,238.69 - 81,238.69
Investments 352,050.78 - 352,050.78
Taxes receivable 4,793,019.68 - 4,793,019.68
Utility charges receivable - current - 2,295,883.35 2,295,883.35
Special Assessments receivable 226,044.65 22,089.24 248,133.89
Interest receivable 251.02 239.92 490.94
Other receivables 522,003.82 5,295.47 527,299.29
Notes receivable 184,725.20 - 184,725.20
Motor fuel receivable 115,719.21 - 115,719.21
Grants receivable 319,469.07 - 319,469.07
Inventory 237,368.91 1,264,289.93 1,501,658.84
Prepaid items 306,438.72 37,557.50 343,996.22
Internal balances (210,199.58) 210,199.58 -
Total current assets $ 50,653,855.02 $ 16,404,150.52 $ 67,058,005.54
Noncurrent assets:
Restricted cash and cash equivalents - 5,903,024.22 5,903,024.22
Utility charges receivable - noncurrent - 408,007.48 408,007.48
Net pension assets 7,124,950.58 1,214,575.42 8,339,526.00
Land 10,117,070.83 649,917.54 10,766,988.37
Buildings 20,589,455.03 1,984,568.59 22,574,023.62
Land Improvements 19,411,780.52 152,069,859.54 171,481,640.06
Equipment 5,851,220.69 3,906,471.15 9,757,691.84
Infrastructure 119,667,592.25 - 119,667,592.25
Construction in process 6,646,861.41 4,089,883.22 10,736,744.63
Total noncurrent assets $ 189,408,931.31 $ 170,226,307.16 $ 359,635,238.47
Total assets $ 240,062,786.33 $ 186,630,457.68 $ 426,693,244.01
Deferred outflows of resources:
Deferred outflow related-pensions $ 2,566,023.73 $ 354,020.27 $ 2,920,044.00
Total deferred outflows of resources $ 2,566,023.73 $ 354,020.27 $ 2,920,044.00
Primary Government
City of Cape Girardeau
Statement of Net Position
June 30, 2015
See Accompanying Notes to Basic Financial Statements.
Governmental
Activities
Business-type
Activities Total
LIABILITIES
Current liabilities:
Accounts payable $ 1,891,872.92 $ 4,108,863.59 $ 6,000,736.51
Salaries and benefits payable 800,946.03 150,627.54 951,573.57
Interest payable 93,612.57 918,614.95 1,012,227.52
Other liabilites 265,322.81 622,304.70 887,627.51
Estimated claims 381,000.00 - 381,000.00
Due to other governments 1,208.25 66,073.88 67,282.13
Unearned revenues 101,213.85 69,987.59 171,201.44
Current portion of long-term debt
Notes payable 350,032.84 - 350,032.84
Revenue bonds payable 45,700.00 5,773,000.00 5,818,700.00
Leasehold revenue bonds payable 2,150,000.00 - 2,150,000.00
Special obligation bonds payable 80,000.00 175,000.00 255,000.00
Total current liabilities $ 6,160,909.27 $ 11,884,472.25 $ 18,045,381.52
Noncurrent liabilities:
Estimated landfill post closure costs $ - $ 33,750.00 $ 33,750.00
Notes payable 3,619,900.82 - 3,619,900.82
Revenue bonds payable 760,600.00 81,087,158.40 81,847,758.40
Leasehold revenue bonds payable 6,193,176.37 - 6,193,176.37
Special obligation bonds payable 1,068,227.65 385,538.00 1,453,765.65
Compensated absences payable 1,369,745.68 182,261.13 1,552,006.81
Net OPEB obligation 2,496,865.00 218,369.00 2,715,234.00
Total noncurrent liabilities $ 15,508,515.52 $ 81,907,076.53 $ 97,415,592.05
Total liabilities $ 21,669,424.79 $ 93,791,548.78 $ 115,460,973.57
NET POSITION
Net investment in capital assets $ 163,824,387.91 $ 75,288,120.75 $ 239,112,508.66
Restricted for depreciation and replacement - 277,000.00 277,000.00
Restricted for emergency fund 4,953,920.00 2,890,082.00 7,844,002.00
Restricted for Mausoleum 94,846.40 - 94,846.40
Restricted for Operation and Maintenance 25,419.62 - 25,419.62
Unrestricted 52,060,811.34 14,737,726.42 66,798,537.76
Total net position $ 220,959,385.27 $ 93,192,929.17 $ 314,152,314.44
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Net Position
June 30, 2015
Primary Government
Functions/Programs Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Primary government:
Governmental activities:
Interest and Other Charges $ 617,889.91 $ - $ - $ - $ (617,889.91) $ - $ (617,889.91)
Development Services 5,854,606.64 1,318,568.30 1,134,497.28 - (3,401,541.06) - (3,401,541.06)
Public Safety 13,870,405.61 84,879.56 394,942.12 80,626.79 (13,309,957.14) - (13,309,957.14)
Public Works 8,237,177.71 14,245.00 - 501,249.15 (7,721,683.56) - (7,721,683.56)
Parks and Recreation 5,167,102.92 1,614,272.64 23,738.88 7,500.00 (3,521,591.40) - (3,521,591.40)
Capital Improvements 973,033.38 - - 1,499,678.30 526,644.92 - 526,644.92
Administrative 3,100,622.60 1,828,741.75 - - (1,271,880.85) - (1,271,880.85)
Total governmental activities $ 37,820,838.77 $ 4,860,707.25 $ 1,553,178.28 $ 2,089,054.24 $ (29,317,899.00) $ - $ (29,317,899.00)
Business-type activities:
Golf Course Fund $ 679,453.56 $ 474,276.12 $ 1,020.00 $ - $ - $ (204,157.44) $ (204,157.44)
Sewer Fund 8,125,842.41 7,086,698.62 - 1,445,695.63 - 406,551.84 406,551.84
Solid Waste Fund 3,257,215.29 3,342,171.38 - - - 84,956.09 84,956.09
Sporting Complexes Fund 1,095,071.90 377,565.01 - 44,232.85 - (673,274.04) (673,274.04)
Water Fund 7,831,517.08 6,257,541.44 - 120,334.49 - (1,453,641.15) (1,453,641.15)
Total business-type activities $ 20,989,100.24 $ 17,538,252.57 $ 1,020.00 $ 1,610,262.97 $ - $ (1,839,564.70) $ (1,839,564.70)
Total primary government $ 58,809,939.01 $ 22,398,959.82 $ 1,554,198.28 $ 3,699,317.21 $ (29,317,899.00) $ (1,839,564.70) $ (31,157,463.70)
Program Revenues Primary Government
See Accompanying Notes to Basic Financial Statements.
Net (Expense) Revenue and Changes in Net Position
City of Cape Girardeau
Statement of Activities
For the Year Ended June 30, 2015
Functions/Programs Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
$ 2,228,303.05 $ - $ 2,228,303.05
27,690,472.08 - 27,690,472.08
4,969,829.08 - 4,969,829.08
1,459,353.83 - 1,459,353.83
2,136,403.70 - 2,136,403.70
1,316,019.23 - 1,316,019.23
73,152.38 - 73,152.38
3,623,268.75 - 3,623,268.75
52,801.35 - 52,801.35
607,557.43 256,465.20 864,022.63
99,027.25 79,438.83 178,466.08
(6,134,074.48) 6,134,074.48 -
38,122,113.65 6,469,978.51 44,592,092.16
8,804,214.65 4,630,413.81 13,434,628.46
193,838,001.27 87,617,825.88 281,455,827.15
18,317,169.35 944,689.48 19,261,858.83
$ 220,959,385.27 $ 93,192,929.17 $ 314,152,314.44 Net position - ending
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Activities
For the Year Ended June 30, 2015
Net (Expense) Revenue and Changes in Net Position
Program Revenues Primary Government
Unrestricted investment earnings
Gain or Loss on sale of assets
Transfers
Total general revenues, special items, and transfers
Change in net position
Net position - beginning
Prior period adjustments
Unrestricted grants and contributions
General revenues:
Property taxes
Sales taxes
Franchise taxes
Motor fuel taxes
Convention and tourism taxes
Merchant licenses
Liquor licenses
Other taxes
FUND FINANCIAL STATEMENTS
General Fund Airport Fund
Parks and Recreation
Fund
Casino Revenue
Fund
Transportation Sales
Tax IV
Total Nonmajor
Funds
Total Governmental
Funds
LIABILITIES
Current liabilities:
Accounts payable $ 253,153.18 $ 73,648.46 $ 110,241.64 $ 65,620.72 $ 475,061.21 $ 846,408.59 $ 1,824,133.80
Salaries and benefits payable 563,295.96 20,198.65 101,303.01 - - 4,169.74 688,967.36
Other liabilities 205,643.74 46,996.51 12,871.56 - - (189.00) 265,322.81
Due to other governments 1.63 (0.02) - - - 1,206.64 1,208.25
Payable to other funds - - - - - 321,758.60 321,758.60
Unearned revenues - 1,694.00 98,919.85 - - 600.00 101,213.85
Deferred revenues 232,469.13 - - - - 110,562.94 343,032.07
Total Current liabilities 1,254,563.64 142,537.60 323,336.06 65,620.72 475,061.21 1,284,517.51 3,545,636.74
Noncurrent liabilities:
Total Noncurrent liabilities - - - - - - -
Total liabilities 1,254,563.64 142,537.60 323,336.06 65,620.72 475,061.21 1,284,517.51 3,545,636.74
FUND BALANCES (DEFICITS)
Nonspendable 264,927.10 15,320.52 26,808.64 488,335.00 - 13,160.04 808,551.30
Restricted 4,574,475.40 - - - 8,465,283.81 19,554,888.66 32,594,647.87
Committed - - - 4,490,647.60 - - 4,490,647.60
Assigned 118,759.46 136,403.16 426,796.19 - - 533,582.76 1,215,541.57
Unassigned 2,731,862.99 - - - - - 2,731,862.99
Total fund balances (deficits) 7,690,024.95 151,723.68 453,604.83 4,978,982.60 8,465,283.81 20,101,631.46 41,841,251.33
Total liabilities and fund balances (deficits) $ 8,944,588.59 $ 294,261.28 $ 776,940.89 $ 5,044,603.32 $ 8,940,345.02 $ 21,386,148.97 $ 45,386,888.07
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau-GAAP
Balance Sheet
Governmental Funds
June 30, 2015
General Fund Airport Fund
Parks and Recreation
Fund
Casino Revenue
Fund
Transportation Sales
Tax IV
Total Nonmajor
Funds
Total Governmental
Funds
ASSETS
Current assets:
Cash and cash equivalents $ 8,700.00 $ - $ - $ - $ - $ 57,688.30 $ 66,388.30
Pooled cash and investments 5,066,390.33 65,696.62 702,903.82 4,271,737.49 8,489,819.15 19,593,248.42 38,189,795.83
Receivables-
Real estate taxes, net 74,992.10 - - - - 15,331.09 90,323.19
Property taxes, net 17,304.98 - - - - 3,242.08 20,547.06
Sales tax 918,093.72 - - - 450,525.87 1,142,918.81 2,511,538.40
Franchise taxes 1,976,759.76 - - - - - 1,976,759.76
Hotel & motel tax - - - - - 193,851.27 193,851.27
Special assessments 132,204.68 - - - - 93,839.97 226,044.65
Other 33,166.56 113,527.06 31,980.41 284,530.83 - 20,232.55 483,437.41
Motor fuel tax - - - - - 74,917.39 74,917.39
Vehicle license fees - - - - - 13,075.65 13,075.65
Motor vehicle sales tax - - - - - 27,726.17 27,726.17
Grants 132,175.28 56,722.74 - - - 130,571.05 319,469.07
Other funds 321,758.60 - - - - - 321,758.60
Inventory 215.48 42,994.34 15,248.02 - - 6,346.18 64,804.02
Prepaid items 125,596.40 15,320.52 26,808.64 - - 13,160.04 180,885.60
Total Current assets 8,807,357.89 294,261.28 776,940.89 4,556,268.32 8,940,345.02 21,386,148.97 44,761,322.37
Noncurrent assets:
Advances to other funds 137,230.70 - - 488,335.00 - - 625,565.70
Total Noncurrent assets 137,230.70 - - 488,335.00 - - 625,565.70
Total assets $ 8,944,588.59 $ 294,261.28 $ 776,940.89 $ 5,044,603.32 $ 8,940,345.02 $ 21,386,148.97 $ 45,386,888.07
City of Cape Girardeau-GAAP
Balance Sheet
Governmental Funds
June 30, 2015
See Accompanying Notes to Basic Financial Statements.
$41,841,251.33
180,495,539.08
7,049,209.48
9,403,313.56
(180,652.24)
(14,267,637.68)
(2,400,336.00)
(1,324,334.33)
343,032.07
$220,959,385.27
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Reconciliation of Balance Sheet
To the Statement of Net Position
June 30, 2015
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the
governental funds.
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 the individual
funds. Their assets and liabilities are included in governmental activities in the statement of net position.
Assets, liabilities, and deferred inflows and outflows related to the City's employee retirement plan are reported on
a net basis in government activities of the statement of net postion but are not included in the governmental funds
because they do require the use of or provide current financial resources.
Accrued expenses that are included in governmental activities in the statement of net position are not included in
governmental fund because they are not payable from current financial resources.
Long-term debt are included in the governmental activities in the statement of net position but not in governmental
funds because they are not due and payable in the current period.
Non-current net OPEB obiligation included in governmental activities of the statement of net position for employee
post-retirement healthcare benefits are not included in governmental funds because they do not require the use of
current financial resoruces.
Non-current compensated absences payable included in governmental activities of the statement of net position
for earned vacation and termination pay do not require the use of current financial resources and are not included
in governmental funds.
Assets included in governmental activities of the statement of net position that are not available to pay for current-
period expenditures are offset by deferred revenues in governmental funds.
Net position of governmental activities
General Fund Airport Fund
Parks and Recreation
Fund Casino Revenue Fund
Transportation Sales
Tax IV Total Nonmajor Funds
Total Governmental
Funds
REVENUES
Taxes $ 17,123,365.33 $ - $ - $ 3,268,825.19 $ 4,919,235.94 $ 15,305,563.87 $ 40,616,990.33
Licenses & permits 1,575,202.27 - - - - 2,512.00 1,577,714.27
Intergovernmental 657,732.73 294,582.49 - - 30,000.00 3,575,051.15 4,557,366.37
Charges for services 192,086.58 367,561.78 1,303,203.17 - - 83,502.46 1,946,353.99
Internal charges 939,547.46 - - - - - 939,547.46
Fines and forfeits 704,966.50 - - - - - 704,966.50
Miscellaneous 516,411.67 275,262.97 8,999.26 - - 118,513.03 919,186.93
Investment revenue 80,791.86 353.36 5,381.61 56,196.54 88,979.71 283,994.40 515,697.48
Special assessments 65,351.77 - - - - 18,991.80 84,343.57
Total revenues 21,855,456.17 937,760.60 1,317,584.04 3,325,021.73 5,038,215.65 19,388,128.71 51,862,166.90
EXPENDITURES
Current:
Administrative 2,462,042.25 - - 92,602.27 - - 2,554,644.52
Capital Improvements - - - - - 348,434.46 348,434.46
Development Services 2,321,508.30 1,456,993.12 - - 277,432.59 1,917,159.62 5,973,093.63
Parks and Recreation 1,664,318.46 - 2,513,244.70 24,079.54 - 66,155.41 4,267,798.11
Public Safety 12,813,726.36 - - 52.12 - 400,264.18 13,214,042.66
Public Works 2,874,265.03 - - - - - 2,874,265.03
Debt service:
Administrative charges 477.00 - - - - 8,211.76 8,688.76
Interest 53,719.22 120.09 - 119,401.73 - 481,430.45 654,671.49
Principal 374,000.00 - - 340,598.27 - 3,455,607.04 4,170,205.31
Capital outlay:
Administrative 6,981.00 - - 10,713.00 - - 17,694.00
Capital Improvements - - - 966,164.12 2,063,145.38 4,107,754.93 7,137,064.43
Development Services 6,821.22 7,839.39 - 12,576.75 - - 27,237.36
Parks and Recreation 12,165.80 - 3,578.14 51,346.81 - 1,049,737.95 1,116,828.70
Public Safety 72,929.49 - - 24,356.95 - 941,541.37 1,038,827.81
Public Works - - - 115,199.93 - - 115,199.93
Total expenditures 22,662,954.13 1,464,952.60 2,516,822.84 1,757,091.49 2,340,577.97 12,776,297.17 43,518,696.20
Excess (deficiency) of revenues over
expenditures (807,497.96) (527,192.00) (1,199,238.80) 1,567,930.24 2,697,637.68 6,611,831.54 8,343,470.70
OTHER FINANCING SOURCES (USES)
Transfers out (5,118,472.63) - (3,421.86) (486,002.93) - (12,020,794.88) (17,628,692.30)
Transfers in 6,795,999.22 590,727.72 1,272,199.87 260,000.00 260,000.00 5,283,682.59 14,462,609.40
Asset disposition 21,759.38 - 227.61 - - - 21,986.99
Total other financing source (uses) 1,699,285.97 590,727.72 1,269,005.62 (226,002.93) 260,000.00 (6,737,112.29) (3,144,095.91)
SPECIAL ITEMS
Special payment to employee retirement plan (1,591,411.08) (46,777.72) (62,401.48) - - (1,403.33) (1,701,993.61)
Net change in fund balances (699,623.07) 16,758.00 7,365.34 1,341,927.31 2,957,637.68 (126,684.08) 3,497,381.18
Fund balances - beginning 8,405,608.39 138,676.59 464,541.50 3,637,055.29 5,507,646.13 20,236,524.83 38,390,052.73
Prior period adjustment (15,960.37) (3,710.91) (18,302.01) - - (8,209.29) (46,182.58)
Fund balances - ending $ 7,690,024.95 $ 151,723.68 $ 453,604.83 $ 4,978,982.60 $ 8,465,283.81 $ 20,101,631.46 $ 41,841,251.33
City of Cape Girardeau
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2015
$3,497,381.18
Governmental funds report capital outlays as expenditures. In the statement of activities capital outlays are not expensed, but the cost of
the outlays are allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation
was more or (less) than capital outlays.(1,051,473.89)
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 the individual funds. Their operations are are included in
governmental activities in the statement of activites.(1,326,220.10)
Changes in the assets, liabilities, and deferred inflows and outflows related to the City's employee retirement plan that occurred during
the current year that do not require current financial resources are reported on the statement of activities but not in the governmental
funds.1,905,470.12
Accrued expenses that are reported in the statement of activities are not reported as expenditures in governmental funds becasue they
do not require the use of current financial resources.11,819.81
Increases (decreases) in long-term debt are reported as revenues (expenses) in the fund financial statements but are not included in the
statement of activities 4,191,955.14
Changes in the net OPEB obligation related to the cost of providing future post-retirement healthcare costs to the City's employees that
do not require current financial resources are reported on the statement of activities but not in governmental funds.(40,211.00)
Changes in compensated absences payable related to the cost of providing currently earned vacation and termination pay to the City's
employees in the future are reported on the statement of activities but not in governmental funds because they do not require the use of
current financial resources.(247,622.99)
Revenues in the statment of activities that do not provide current financial resources are not reported as revenues in governmental funds.
13,335.38
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governental funds.1,849,781.00
$8,804,214.65
City of Cape Girardeau
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities
For the Year Ended June 30, 2015
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Change in net position of governmental activities
See Accompanying Notes to Basic Financial Statements.
Governmental
Activities
Sewer Fund Water Fund Solid Waste Fund Golf Course Fund
Sporting Complexes
Fund Total Enterprise Funds
Internal Service
Funds
ASSETS
Current assets:
Cash and cash equivalents $ - $ - $ - $ - $ - $ - $ 14,850.39
Pooled cash and investments 5,299,939.42 6,518,664.20 520,302.42 77,169.61 152,519.88 12,568,595.53 5,535,929.02
Investments - - - - - - 352,050.78
Utilities charges - current 1,017,197.83 916,637.54 362,047.98 - - 2,295,883.35 -
Special assessments 16,154.84 5,934.40 - - - 22,089.24 -
Other 5,384.58 1,163.95 17.70 (908.40) (362.36) 5,295.47 38,566.41
Notes receivable - - - - - - 184,725.20
Interest 239.92 - - - - 239.92 251.02
Inventory - 1,238,238.39 - 5,138.25 20,913.29 1,264,289.93 172,564.89
Prepaid items 19,803.23 8,066.20 6,421.40 314.67 2,952.00 37,557.50 125,553.12
Total current assets $ 6,358,719.82 $ 8,688,704.68 $ 888,789.50 $ 81,714.13 $ 176,022.81 $ 16,193,950.94 $ 6,424,490.83
Noncurrent assets:
Rest cash and cash equivalents $ 5,903,024.22 $ - $ - $ - $ - $ 5,903,024.22 $ -
Utility charges receivable - noncurrent - - 408,007.48 - - 408,007.48 -
Net pensions assets 602,539.67 84,923.80 375,187.29 104,199.85 47,724.81 1,214,575.42 200,565.80
Land 537,677.99 - 112,239.55 - - 649,917.54 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 3,990,932.77 2,419,009.74 3,746,948.70 59,727.93 240,333.75 10,456,952.89 5,547,206.93
Other improvements 141,598,234.75 58,179,364.81 344,022.92 1,972,744.42 1,557,642.35 203,652,009.25 155,653.19
Construction in progress 3,003,227.53 903,723.69 182,932.00 - - 4,089,883.22 -
Accumulated depreciation (41,677,396.01) (19,605,797.26) (3,696,374.27) (957,010.20) (767,652.62) (66,704,230.36) (4,005,824.92)
Total noncurrent assets $ 122,036,586.92 $ 42,204,871.41 $ 2,556,586.80 $ 1,343,336.80 $ 2,084,925.23 $ 170,226,307.16 $ 1,989,007.45
Total assets $ 128,395,306.74 $ 50,893,576.09 $ 3,445,376.30 $ 1,425,050.93 $ 2,260,948.04 $ 186,420,258.10 $ 8,413,498.28
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to the pension plan $ 156,329.70 $ 28,739.92 $ 107,467.30 $ 22,767.95 $ 38,715.40 $ 354,020.27 $ 87,094.95
Total deferred outflows of resources $ 156,329.70 $ 28,739.92 $ 107,467.30 $ 22,767.95 $ 38,715.40 $ 354,020.27 $ 87,094.95
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2015
See Accompanying Notes to Basic Financial Statements.
Business-type Activities
Governmental
Activities
Sewer Fund Water Fund Solid Waste Fund Golf Course Fund
Sporting Complexes
Fund Total Enterprise Funds
Internal Service
Funds
LIABILITIES
Current liabilities:
Accounts payable $ 3,022,465.78 $ 986,497.81 $ 58,034.44 $ 15,158.32 $ 26,707.24 $ 4,108,863.59 $ 67,739.12
Salaries and benefits payable 58,968.03 8,047.17 28,078.94 17,638.73 37,894.67 150,627.54 24,939.00
Interest payable 711,699.32 206,915.63 - - - 918,614.95 -
Other liabilities 278,359.68 221,032.15 110,304.02 12,608.85 - 622,304.70 -
Estimated claims payable - - - - - - 381,000.00
Due to other governments 21,460.09 44,613.79 - - - 66,073.88 -
Unearned revenues - - - 41,557.11 28,430.48 69,987.59 -
Current portion of long-term debt
Revenue bonds payable 5,218,000.00 555,000.00 - - - 5,773,000.00 -
Special obligation bonds payable - - 175,000.00 - - 175,000.00 -
Total current liabilities $ 9,310,952.90 $ 2,022,106.55 $ 371,417.40 $ 86,963.01 $ 93,032.39 $ 11,884,472.25 $ 473,678.12
Noncurrent liabilities:
Net OPEB obligation 9,889.00 40,798.00 81,006.00 74,776.00 11,900.00 218,369.00 96,529.00
Compensated absences payable 64,131.87 8,778.22 57,794.47 20,222.62 31,333.95 182,261.13 45,411.35
Advances from other funds - - 488,335.00 70,097.91 67,132.79 625,565.70 -
Revenue bonds payable 69,474,532.33 11,612,626.07 - - - 81,087,158.40 -
Special obligation bonds payable - - 385,538.00 - - 385,538.00 -
Est. landfill post closure cost - - 33,750.00 - - 33,750.00 -
Total noncurrent liabilities $ 69,548,553.20 $ 11,662,202.29 $ 1,046,423.47 $ 165,096.53 $ 110,366.74 $ 82,532,642.23 $ 141,940.35
Total liabilities $ 78,859,506.10 $ 13,684,308.84 $ 1,417,840.87 $ 252,059.54 $ 203,399.13 $ 94,417,114.48 $ 615,618.47
NET POSITION
Invested in capital assets, net of related debt 40,838,490.70 29,957,129.31 1,216,163.37 1,239,136.95 2,037,200.42 75,288,120.75 1,788,441.65
Restricted for depreciation and replacement 127,000.00 150,000.00 - - - 277,000.00 -
Restricted for emergencies 1,647,729.00 908,804.00 333,549.00 - - 2,890,082.00 -
Unrestricted 7,078,910.64 6,222,073.86 585,290.36 (43,377.61) 59,063.89 13,901,961.14 6,096,533.11
Total net position $ 49,692,130.34 $ 37,238,007.17 $ 2,135,002.73 $ 1,195,759.34 $ 2,096,264.31 92,357,163.89 $ 7,884,974.76
- - - 835,765.28
$ 93,192,929.17
Difference between business-type adjustments to assets and liabilities.
Net position of business-type activities
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2015
Business-type Activities
Governmental
Activities
Sewer Fund Water Fund Solid Waste Fund Golf Course Fund
Sporting Complexes
Fund Total Enterprise Funds Internal Service Funds
OPERATING REVENUES
Residential charges $ 4,483,484.08 $ 3,638,807.65 $ 2,387,422.79 $ - $ - $ 10,509,714.52 $ -
Commerical charges 2,385,597.02 2,366,191.71 38,624.06 - - 4,790,412.79 -
Transfer station charges - - 773,703.75 - - 773,703.75 -
Other fees and charges 127,625.40 232,129.88 97,086.10 - - 456,841.38 17,871.49
Concession revenues - - - 32,958.12 53,942.47 86,900.59 -
Internal charges 7,454.16 - - - 4,116.00 11,570.16 6,706,502.68
Usage fees - - - 439,974.35 319,224.54 759,198.89 -
Miscellaneous 1,367.96 20,412.20 45,334.68 2,363.65 282.00 69,760.49 1,105.53
Total operating revenues $ 7,005,528.62 $ 6,257,541.44 $ 3,342,171.38 $ 475,296.12 $ 377,565.01 $ 17,458,102.57 $ 6,725,479.70
OPERATING EXPENSES
Personnel services $ 1,682,310.71 $ 266,256.89 $ 1,091,241.53 $ 385,601.87 $ 597,392.61 $ 4,022,803.61 $ 851,549.40
Materials & supplies 632,171.06 1,006,423.59 229,137.85 110,488.50 170,512.41 2,148,733.41 623,133.14
Contractual services 684,559.21 2,792,341.07 1,103,707.96 47,567.38 58,728.43 4,686,904.05 4,087,881.03
General operating expenses 520,082.84 379,036.67 34,609.41 156.05 1,005.31 934,890.28 62,315.87
Special programs 16,712.04 242,310.87 19,118.05 4,633.93 81,289.68 364,064.57 37,800.00
Internal service expenses 191,366.21 143,086.71 409,110.00 38,702.82 37,513.78 819,779.52 6,439.00
Depreciation 3,247,884.45 1,667,681.22 408,017.21 95,024.20 158,925.41 5,577,532.49 436,661.07
Total operating expenses $ 6,975,086.52 $ 6,497,137.02 $ 3,294,942.01 $ 682,174.75 $ 1,105,367.63 $ 18,554,707.93 $ 6,105,779.51
Operating income (loss) $ 30,442.10 $ (239,595.58) $ 47,229.37 $ (206,878.63) $ (727,802.62) $ (1,096,605.36) $ 619,700.19
NONOPERATING REVENUES (EXPENSES)
Investment revenue $ 178,560.79 $ 67,908.55 $ 9,183.67 $ 455.96 $ 356.23 $ 256,465.20 $ 91,863.95
Gain from sale of asset 68,671.80 468.05 4,447.40 1,133.13 4,718.45 79,438.83 77,271.87
Interest and other charges (1,206,687.24) (392,249.88) (11,403.37) (4,730.04) (4,119.38) (1,619,189.91) -
Total nonoperating revenues (expenses) $ (959,454.65) $ (323,873.28) $ 2,227.70 $ (3,140.95) $ 955.30 $ (1,283,285.88) $ 169,135.82
Income (loss) before contributions and
transfers $ (929,012.55) $ (563,468.86) $ 49,457.07 $ (210,019.58) $ (726,847.32) $ (2,379,891.24) $ 788,836.01
Contributed cap - connect fee 81,170.00 - - - - 81,170.00 -
Contributed cap - developers 507,811.25 120,334.49 - - - 628,145.74 -
Contributed cap - government 964,228.30 - - - 55,622.00 1,019,850.30 -
Transfers in 2,242,501.42 1,567,353.10 587,895.08 128,681.64 637,447.65 5,163,878.89 48,181.05
Transfers out (3,421.86) (2,000.00) - - - (5,421.86) (2,040,555.18)
Change in net position 2,863,276.56 1,122,218.73 637,352.15 (81,337.94) (33,777.67) 4,507,731.83 (1,203,538.12)
Total net position - beginning 46,291,246.11 36,165,016.48 1,131,667.96 1,214,905.53 2,101,906.50 86,904,742.58 8,876,259.44
Prior period adjustments 537,607.67 (49,228.04) 365,982.62 62,191.75 28,135.48 944,689.48 212,253.44
Total net position - ending $ 49,692,130.34 $ 37,238,007.17 $ 2,135,002.73 $ 1,195,759.34 $ 2,096,264.31 $ 92,357,163.89 $ 7,884,974.76
122,681.98
4,630,413.81
Business-type Activities
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2015
Change in net position of business-type activities.
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds.
Government
Total Activities
Softball Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complex Funds Funds
$ 6,992,821.03 $ 6,401,669.10 $ 3,214,111.70 $ 531,313.98 $ 459,980.38 $ 17,599,896.19 $ 132,176.65
7,454.16 - 38,624.06 - 4,116.00 50,194.22 6,583,537.84
- - - 1,020.00 - 1,020.00 1,793.91
(1,202,807.27) (3,937,963.14) (1,477,367.07) (202,986.52) (407,212.88) (7,228,336.88) (5,031,657.86)
(1,724,298.95) (276,297.58) (1,107,737.27) (368,189.19) (613,675.55) (4,090,198.54) (881,307.76)
(204,146.41) (143,149.88) (409,110.00) (38,702.82) (37,513.78) (832,622.89) (6,439.00)
(349,423.63) (312,837.17) - - - (662,260.80) -
(15,158.72) (257,390.24) - - - (272,548.96) -
- $ 3,504,440.21 $ 1,474,031.09 $ 258,521.42 $ (77,544.55) $ (594,305.83) $ 4,565,142.34 $ 798,103.78
$ 605,631.84 $ 19,365.98 $ 587,895.08 $ 126,681.64 $ 630,458.65 $ 1,970,033.19 $ 48,181.05
- - - - - - (2,035,782.79)
Advance repayment to other funds - - (504,817.85) (32,536.53) (20,256.52) (557,610.90) -
Advance from other funds - - 488,335.00 - - 488,335.00 -
- - - (4,730.04) (4,119.38) (8,849.42) -
1,289.19 - - - - 1,289.19 -
(131,351.84) (19,365.98) (83,077.23) (22,172.64) (13,752.65) (269,720.34) (48,181.05)
$ 475,569.19 $ - $ 488,335.00 $ 67,242.43 $ 592,330.10 $ 1,623,476.72 $ (2,035,782.79)
- - - - - - - $ 91,709.80 $ 1,744.04 $ - $ - $ 55,622.00 $ 149,075.84 $ -
Principal received on promissory note - - - - - - 15,864.65
Interest received on promissory note - - - - - - 3,406.84
83,110.42 12,480.93 4,447.40 1,133.13 4,718.45 105,890.33 77,271.87
12,156,055.49 - - - - 12,156,055.49 -
(504,523.69) (197,050.01) (155,305.56) - (55,622.00) (912,501.26) (336,138.54)
(15,196,377.88) (1,099,638.34) (169,307.00) - - (16,465,323.22) -
(1,648,170.00) (545,000.00) (694,842.89) - - (2,888,012.89) -
(1,701,257.16) (419,281.26) (24,159.23) - - (2,144,697.65) -
9,369.58 1,547,987.12 - 2,000.00 6,989.00 1,566,345.70 -
(3,421.86) (2,000.00) - - - (5,421.86) (4,772.39)
1,627,500.00 - - - - 1,627,500.00 -
$ (5,086,005.30) $ (700,757.52) $ (1,039,167.28) $ 3,133.13 $ 11,707.45 $ (6,811,089.52) $ (244,367.57)
Receipts from interfund services
Payments for salaries and benefits
Payments for interfund services used
Transfers from other funds
Remittance of taxes collected from customers
Proceeds from sales of capital assets
Transfers in for capital acquisitions
Subsidy from state grant
Principal paid on capital debt
Interest paid on capital debt
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Payments to suppliers
Capital contributions
Acquisition and construction of capital assets
Transfers out for capital acquisitions
Transfers in for payment of capital related debt
Net cash (used) by capital and related financing
activities
Proceeds from capital debt
Purchase of capital assets
Receipts from customers
Other receipts
CASH FLOWS FROM OPERATING ACTIVITIES
City of Cape Girardeau
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2015
Business-type Activities - Enterprise Funds
Payments made in lieu of franchise taxes
Transfers to other funds
Interest paid to other funds
Net cash provided (used) by operating activities
Net cash (used) by noncapital financing
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Special payment to employee retirement plan
See Accompanying Notes to Basic Financial Statements.
Government
Total Activities
Softball Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complex Funds Funds
$ 182,901.19 $ 68,669.49 $ 9,627.47 $ 480.25 $ 404.14 $ 262,082.54 $ 91,987.15
- - - - - - 350,000.00
- - - - - - (352,912.11)
2,542,156.29 (841,943.06) 282,683.39 6,688.74 (10,135.86) 1,979,449.50 1,392,869.21
2,725,057.48 (773,273.57) 292,310.86 7,168.99 (9,731.72) 2,241,532.04 1,481,944.25
1,619,061.58 - - - - 1,619,061.58 (102.33)
4,283,962.64 - - - - 4,283,962.64 14,952.72
Prior period adjustment - - - - - - - $ 5,903,024.22 $ - $ - $ - $ - $ 5,903,024.22 $ 14,850.39
$ 30,442.10 $ (239,595.58) $ 47,229.37 $ (206,878.63) $ (727,802.62) $ (1,096,605.36) $ 619,700.19
Depreciation expense 3,247,884.45 1,667,681.22 408,017.21 95,024.20 158,925.41 5,577,532.49 436,661.07
152,974.81 689,820.71 (144,683.23) 2,434.30 254.47 700,801.06 (219,605.57)
50,405.59 3,489.13 610.03 (293.60) (6,453.15) 47,758.00 -
6,881.08 (1,056.47) 17,098.99 24,530.04 (4,180.34) 43,273.30 (2,532.10)
Customer receivables 24,950.86 (57,482.94) (62,639.74) (137.60) 362.36 (94,947.06) -
Interfund receivables - - - - - - (8,659.68)
- - - - - - 688.38
Pension asset/liability (48,869.32) (8,984.22) (33,594.73) (7,117.36) (12,102.60) (110,668.23) (27,226.26)
Prepaid expenses 39,770.64 49,043.02 26,483.52 3,423.02 4,117.00 122,837.20 (26,801.54)
Inventory - (628,883.78) - 6,133.52 (3,407.36) (626,157.62) 25,879.29
Unearned revenue - - - 5,337.56 (4,019.00) 1,318.56 -
$ 3,504,440.21 $ 1,474,031.09 $ 258,521.42 $ (77,544.55) $ (594,305.83) $ 4,565,142.34 $ 798,103.78
Statement of Cash Flows
Net cash provided by investing activities
Net increase (decrease) in cash and cash
equivalents
Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Balances - end of the year
Net cash provided by operating activities
Other operating receivables
Salaries & benefits payable
Accounts payable - other
Accounts payable - supplier
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Changes in assets and liabilities:
Operating income (loss)
See Accompanying Notes to Basic Financial Statements.
Balances - beginning of year
For the Year Ended June 30, 2015
Proprietary Funds
Business-type Activities - Enterprise Funds
Net change in pooled investments
City of Cape Girardeau
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Proceeds from sales and maturities of investments
Purchase of investments
Agency funds
ASSETS
Prepaid items $ 23,842.57
Property taxes 17,005.01
Cash and cash equivalents 700.00
Pooled cash and investments 1,385,778.81
Investments 198,000.00
Rest cash and cash equivalents 4,409.41
Real estate taxes 74,929.59
Other 2,207.00
Total assets $ 1,706,872.39
LIABILITIES
Deferred revenues $ 85,957.36
Accounts payable 30,291.61
Salaries and benefits payable 21,460.02
Other liabilities 1,569,163.40
Total liabilities $ 1,706,872.39
See accompanying Notes to Basic Financial Statements.
City of Cape Girardeau-GAAP
Statement of Fiduciary Net Position
June 30, 2015
36
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Cape Girardeau, Missouri (the City) operates under a charter that went into effect April 12,
1982. The City operates under a Council-Manager form of government and provides the following
services as authorized by its charter: public safety (police and fire), highways and streets, water,
sanitation, health and social services, culture-recreation, public improvement, planning and zoning, and
general administrative services.
The financial statements of the City have been prepared in conformity with generally accepted
accounting principles (GAAP), as applied to government units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant accounting policies of the City are
described below.
1. Reporting Entity
In evaluating how to define the City, for financial reporting purposes, management has considered all
potential component units. Generally, component units are legally-separate organizations for which the
elected officials of the City are financially accountable. The Cape Girardeau (Missouri) Public
Facilities Authority (CGPFA) is a blended component unit of the City. The financial statements of the
CGPFA are included in the accompanying financial statements of the City. The Cape Girardeau
Municipal Development Foundation (CGMDF), the Cape Girardeau Public Safety Foundation
(CGPSF), and the Cape Girardeau Parks Development Foundation (CGPDF) are also component units
of the City. The financial statements of these foundations are included as special revenue funds in the
accompanying financial statements.
The CGPFA is a not-for-profit corporation organized and existing under Chapter 355 of the Revised
Statutes of Missouri. The CGPFA board of directors consists of City officials and City Council
members. Due to the significant City influence and financial accountability, the activities of the
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 CGPFA has
entered into a Lease Purchase Agreement with the City from which the lease payments will be used
solely to retire the debt.
The (CGMDF), (CGPSF), and (CGPDF) are not-for-profit corporations organized and existing under
Chapter 355 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 these foundations are included in the financial presentation of the City.
These foundations were established to receive donations to be used for the benefit of the City.
Although not component units of the City, the City handles the funds of and provides accounting and
other services for the Cape Girardeau Public Library and the SEMO Metropolitan Planning
Organization. Since these funds are held by the City, these entities are shown as an Agency Funds in
the financial statements.
37
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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 position 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. Govern-
mental 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 is 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 measurement
focus 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 position.
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 in the balance sheet.
38
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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 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 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 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 course fund accounts for the operation of the municipal golf course.
The sporting complexes 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 and the SEMO
Metropolitan Planning Organization.
39
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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 resources prior to the use of unrestricted net resources
when an expense is incurred for purposes for which both restricted and unrestricted net resources 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. 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.
40
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
5. Capital Assets
All capital assets with an original cost exceeding $5,000 are recorded at historical cost or estimated
historical cost if actual historical cost is not available. Additions are recorded at cost or, if contributed
property, at their estimated fair value at time of contribution. Repairs and maintenance are recorded as
expenses; renewals and betterments are capitalized. The sale or disposal of capital assets is recorded by
removing cost and accumulated depreciation and charging the resulting gain or loss to income.
Depreciation of all exhaustible capital assets is charged as an expense against operations in proprietary
funds and a program cost of governmental activities in the statement of activities. Assets are reported
net of depreciation on proprietary fund and government-wide statement of net position. Depreciation
has been provided over the estimated useful lives using the straight-line method. The estimated useful
lives are as follows:
Buildings 25-50 years
Improvements 10-40 years
Equipment 3-10 years
When applicable, interest costs are capitalized on self-constructed capital assets.
6. 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 position.
7. 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.
8. 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.
41
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
9. Bond Premiums, Discounts, and Issuance Costs
In governmental fund types, bond premiums, discounts, and issuance costs are recognized in the current
period. Bond premiums and discounts for proprietary fund types are deferred and amortized over the
term of the bonds. Bond issuance costs are recognized in the current period for proprietary fund types.
Bond premiums and discounts are presented as either increases or reductions of the face amount of
bonds payable. 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.
10. Prepaid Items
Payments made to vendors for services that will benefit periods beyond June 30, 2015 are recorded as
prepaid items.
11. Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for the
repayment of such bonds, are classified as restricted assets on the balance sheet because their use is
limited by applicable bond covenants. The “revenue bond construction” account is used to report those
proceeds of revenue bond issuances that are restricted for use in construction. The “revenue bond
current debt service” account is used to report resources set aside to make up potential future
deficiencies in the revenue bond current debt service account.
12. Long-Term Obligations
Only that portion of long-term obligations expected to be financed from expendable available financial
resources is reported as a fund liability of a governmental fund. Long-term liabilities expected to be
financed from proprietary fund operations are accounted for in the appropriate proprietary fund. Long-
term liabilities expected to be financed from governmental activities are accounted for in the
government-wide statement of net position.
13. Receivables
Receivables are stated at the amount the City expects to collect. Receivables are reduced by allowances
for uncollectible accounts that reflect management’s best estimate of probable losses. These allowances
are determined principally on the basis of historical experience for smaller accounts. Larger receivables
are reduced by allowances that reflect management’s best estimate of probable losses based on specific
information known about the troubled accounts. Small-balance accounts are normally written off when
over 12 months delinquent. Accounts not expected to be collected within the next 12 months are
reported as Non-current on the Statement of Net Position only if management estimates the customer
has the ability and intent to pay the balance due. Non-current receivables currently accrue interest at the
prime rate plus 3%.
42
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
14. Compensated Absences
Vested or accumulated vacation leave and termination pay for proprietary funds are recorded as
expenses and liabilities of those funds as the benefits accrue to employees. Amounts of vested or
accumulated vacation leave and termination pay of governmental funds are reported in the Statement of
Net Position. Employees may accumulate up to 30 days of 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.
15. 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 position.
Only net receivables between governmental and business-type activities are reflected as internal
balances on the government-wide statement of net position.
16. 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 position. 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 position. Net assets are not reserved for interfund
loan receivables on proprietary and government-wide statements of net position.
17. Pensions
For purposes of measuring the net pension asset / liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the Missouri Local Government Employees Retirement System (LAGERS) and additions
to/deductions from LAGERS fiduciary net position have been determined on the same basis as they are
reported by LAGERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
43
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
18. 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 hired prior to July 1, 2010 who retire from the City prior to April 1,
2015 with five or more years of service and who are eligible for LAGERS retirement (Note G) or after
April 1, 2015 with five or more years of service and have reached their normal retirement ages through
LAGERS. Currently, sixty retirees and twenty-two employees meet those eligibility requirements. The
City provides health care coverage for them until age 65. The costs of retirees’ health care benefits are
recognized as expenditures as premiums are paid. For the year ending June 30, 2015, those costs
totaled $801,327.
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 the 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, 2015.
19. 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, 2015, all infrastructures completed during the fiscal year, including
projects started in a previous year, were recorded at their historical costs.
20. Subsequent Events
In preparing these financial statements, the City has evaluated events and transactions for potential
recognition or disclosure through February 11, 2016, the date the financial statements were available to
be issued.
44
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE B - DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds. Each fund’s
portion of this pool is displayed as “Pooled cash and investments” on the various financial
statements. The pooled deposits and investments held at June 30, 2015, and reported at fair value,
are as follows:
Deposits:
Demand Deposits $ 13,439
Interest Bearing Deposit Accounts 2,127,735
Total Deposits $ 2,141,174
Investments:
Negotiable Instruments $50,722,290
Federal Farm Credit Bank 996,920
Federal National Mortgage Association 3,236,385
Federal Home Loan Mortgage Corporation 501,455
Total Investments $55,457,050
Accrued Interest Revenue: $ 81,875
Total Pooled Deposits and Investments $57,680,099
As of June 30, 2015, the City had the following pooled investments:
Investment Maturities Fair Value
Negotiable Instruments 07/15/2015 – 06/17/2020 $ 50,722,290
Federal Farm Credit Bank 05/13/2019 – 07/22/2019 996,920
Federal National Mortgage Assoc. 07/15/2015 – 09/26/2019 3,236,385
Federal Home Loan Mort. Corp. 03/20/2020 – 03/20/2020 501,455
Total $ 55,457,050
Reconciliation of Pooled Cash and Investments to Statements:
Governmental Pooled Cash and Investments $ 43,725,725
Business-type Pooled Cash and Investments 12,568,595
Fiduciary Pooled Cash and Investments 1,385,779
Total Pooled Cash and Investments $ 57,680,099
45
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE B - DEPOSITS AND INVESTMENTS - Continued
The City also has deposits and investments that are not part of the City’s cash and investment pool.
These deposits and investments held at June 30, 2015, and reported at fair value, are as follows:
Deposits:
Demand Deposits $ 430,138
Interest Bearing Deposit Accounts 5,559,234
Total Deposits $ 5,989,372
Investments:
Negotiable Instruments $ 198,000
U. S. Treasury Note 352,051
Total Investments $ 550,051
Total Non-pooled Deposits and Investments $ 6,539,423
As of June 30, 2015, the City had the following non-pooled investments
Negotiable Instruments 04/12/2014 – 04/12/2017 $ 198,000
U. S. Treasury Note 11/30/2016 – 11/30/2016 352,051
Total $ 550,051
Reconciliation of Non-pooled Deposits and Investments to Statements:
Governmental Cash and Cash Equivalents $ 81,239
Governmental Investments 352,051
Business-type Restricted Cash and Cash Equivalents 5,903,024
Fiduciary Cash and Cash Equivalents 203,109
Total Non-pooled Deposits and Investments $ 6,539,423
Custodial Credit Risk
Deposits in financial institutions, reported as components of cash, cash equivalents, and
investments, had a bank balance of $59,034,945 at June 30, 2015, 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, 2015
are provided above.
46
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE B - DEPOSITS AND INVESTMENTS - Continued
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;
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 any one issuer. At June 30, 2015, 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
18, 2014, 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 $ .3027/100.00 assessed valuation
Public Health .0567/100.00 assessed valuation
Special Business District .6869/100.00 assessed valuation
#2 (Ad Valorem)
47
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
Property tax receivable balances as of June 30, 2015 are as follows:
Special
General Public Business
Revenue Health District Total
Current property tax $ 60,352 $ 11,305 $ 1,284 $ 72,941
Delinquent property tax 39,144 7,332 - 46,476
Reserve for doubtful
Property taxes (7,199) (1,348) - (8,547)
Net property tax receivable
$ 92,297 $ 17,289 $ 1,284 $110,870
NOTE D - CHANGES IN CAPITAL ASSETS
A summary of the capital assets for governmental activities included on the government-wide statement
of net position for the year ended June 30, 2015 is as follows:
Balance Prior Period Current Year Balance
July 1, 2014 Additions Deductions Adjustment Depreciation* June 30, 2015**
Land
$ 9,523,689 $ 593,382 $ - $ - $ - $ 10,117,071
Buildings 20,783,014 801,231 - - 994,790 20,589,455
Land improvements 9,153,015 - - 11,122,485 863,720 19,411,780
Equipment 5,579,517 1,579,655 16,750 - 1,291,201 5,851,221
Infrastructure 122,977,025 1,392,294 - - 4,701,726 119,667,593
Construction in progress 2,937,406 6,076,642 2,367,187 - - 6,646,861
Total capital assets $170,953,666 $ 10,443,204 $ 2,383,937 $ 11,122,485 $ 7,851,437 $ 182,283,981
* 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 Position.
48
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE D - CHANGES IN CAPITAL ASSETS – Continued
Following is a summary of the capital assets for business-type activities on the government-wide
statement of net position for the year ended June 30, 2015:
Balance Current Year Balance
July 1, 2014 Additions Deductions Depreciation June 30, 2015
Land $ 647,165 $ 2,753 $ - $ - $ 649,918
Buildings 2,277,878 - - 293,309 1,984,569
Improvements other
than buildings 87,065,545 69,438,624 - 4,434,310 152,069,859
Equipment 3,963,959 822,169 29,743 849,914 3,906,471
Construction in progress 58,838,028 14,080,709 68,828,854 - 4,089,883
Total capital assets $152,792,575 $ 84,344,255 $68,858,597 $ 5,577,533 $ 162,700,700
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrative $ 435,645
Development Services 55,746
Parks and Recreation 963,338
Public Safety 761,287
Public Works 5,635,421
Total $ 7,851,437
Business-Type Activities:
Golf Course $ 95,024
Sewer 3,247,885
Sporting Complexes 158,926
Solid Waste 408,017
Water 1,667,681
Total $ 5,577,533
NOTE E - LONG-TERM OBLIGATIONS
The following is a summary of changes in the long-term debt from governmental activities included on
the government-wide statement of net position for the year ended June 30, 2015:
Governmental
Activities
Other
Debt*
Revenue
Bonds
Total
Debt payable July 1, 2014 $ 17,608,593 $ 851,000 $ 18,459,593
Discount/Premium
Amortization
(21,750) - (21,750)
Retired (4,125,505) (44,700) (4,170,205)
Issued - - -
Debt payable June 30, 2015 $ 13,461,338 $ 806,300 $ 14,267,638
*Other Debt includes Notes Payable, Special Obligation Bonds, Leasehold Revenue Bonds, and Certificates of Participation.
49
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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 position for the year ended June 30, 2015:
Business-Type Other Revenue
Activities Debt* Bonds Total
Debt payable July 1, 2014 $1,412,540 $ 77,329,758 $ 78,742,298
Discount/Premium
Amortization (1,909) (23,431) (25,340)
Accumulated Interest - 131,776 131,776
Retired (850,093) (2,734,000) (3,584,093)
Issued - 12,156,055 12,156,055
Debt payable June 30, 2015 $ 560,538 $ 86,860,158 $ 87,420,696
*Other Debt includes Special Obligation Bonds
Bonds payable for governmental and business-type activities at June 30, 2015 are comprised of the
following individual issues:
Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1993:
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. Sewerage System Revenue Bonds Series
1993 were retired during the fiscal year ended June 30, 2015.
50
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS – Continued
$538,379 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
2016 6.250% $ 278,844 $ 706,156 $ 985,000
2017 6.250 259,535 715,465 975,000
$ 538,379 $ 1,421,621 $1,960,000
These bonds are dated June 1, 1995. The proceeds of the bond issue were used for the extension and
improvement of the existing sewerage system serving the City.
Principal and interest payments are made annually on January 1 beginning in 1998.
The interest due on the Series 1995D Water Pollution Control Revenue Bonds is subsidized by interest
earnings on a reserve fund held by the bond issue’s trustee. As the City is reimbursed for sewer project
expenditures from the construction funds, the State of Missouri Department of Natural Resources
deposits an amount equal to 70% of the disbursement into the reserve fund. The maximum amount of
funds that will be advanced to the reserve fund will be 70% of the principal amount less the original
issue discount. As bonds are retired 70% of the amount of bonds retired will be repaid to the State of
Missouri Department of Natural Resources out of the reserve fund. The balance of the reserve fund at
June 30, 2015 was $376,865. The reserve fund yields 5.83%.
$3,725,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1996 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
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
$ 3,725,000 $ 556,370 $ 4,281,370
51
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
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, 2015 was $2,607,500. The reserve fund yields 5.70%.
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, 2015, City interest
expense was reduced by $15,901 as a result of this transaction. Over the remaining life of these bonds,
the City will receive net present value benefits of approximately $53,906 from this transaction.
$6,485,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
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
$6,485,000 $1,334,813 $ 7,819,813
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.
52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
The interest due on the Series 2000, Sewer System Revenue Bonds is subsidized by interest earnings on
a reserve fund held by the bond issue’s trustee. As the City is reimbursed for sewer project
expenditures from the construction funds held by the trustee, the State of Missouri Department of
Natural Resources deposits an amount equal to approximately 70% of the reimbursement into the
reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be
$5,848,500. As bonds are retired, 70% of the amount of bonds retired will be repaid to the State of
Missouri Department of Natural Resources out of the reserve fund. The balance of the reserve fund at
June 30, 2015 was $4,580,533. The reserve fund yields 5.16%.
$1,120,000 Special Obligation Bonds, Series 2005:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
$ 1,120,000
$305,766
$1,425,766
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.
53
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
Bank of America 2006 Promissory Note:
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 Bank of America 2006 Promissory
Note was paid in full during the fiscal year ended June 30, 2015.
$8,315,000 Leasehold Revenue Bonds, Series 2009 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2016 4.000% $2,150,000 $ 334,594 $ 2,484,594
2017 4.000 2,240,000 248,594 2,488,594
2018 4.000 2,330,000 158,994 2,488,994
2019 4.100 1,595,000 65,794 1,660,794
$8,315,000 $ 807,976 $ 9,122,976
The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The
CGPFA 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.
$560,000 Special Obligation Bonds, Series 2010A due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2016 2.625% $ 175,000 $ 16,894 $ 191,894
2017 3.000 185,000 12,300 197,300
2018 3.375 200,000 6,750 206,750
$ 560,000 $ 35,944 $ 595,944
54
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
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.
$806,300 Waterworks Revenue Bonds, Series 2010 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Admin Fee
Due
Total
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
$ 806,300 $ 98,137 $ 32,933 $ 937,370
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.
55
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
$12,220,000 Waterworks System Refunding Revenue Bonds Series 2012A due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
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
$ 12,220,000 $ 4,283,261 $ 16,503,261
On April 17, 2012, the City issued $13,955,000 of Refunding Revenue Bonds. The proceeds were used
to refund the outstanding Series 1998 Bonds.
The Bonds were issued with interest varying from 2.0% to 4.0%. Principal and interest will be paid by
the City from the revenues derived from the operation of the waterworks system.
Principal payments are made annually on January 1. Interest payments are made semi-annually on
January 1 and July 1.
56
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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
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 $ 4,774,655 $ 3,338,920 $ 39,113,575
Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were issued
by the City on June 19, 2012. There is a 1% administrative fee charged on this loan along with the
1.43% interest rate. Principal is disbursed on this loan as needed.
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.
57
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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
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 1.390 153,000 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 1.390 169,000 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 1.390 197,000 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 $ 483,754 $ 348,025 $ 4,081,779
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
1.39% 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.
58
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
$35,750,000 Sewerage System Revenue Bonds (State of Missouri – Direct Loan Program) Series
2013B due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Admin
Fee
Total
2016 1.390% $ 1,473,000 $ 491,838 $ 353,840 $ 2,318,678
2017 1.390 1,507,000 471,245 339,025 2,317,270
2018 1.390 1,541,000 450,179 323,870 2,315,049
2019 1.390 1,577,000 428,634 308,370 2,314,004
2020 1.390 1,613,000 406,589 292,510 2,312,099
2021 1.390 1,651,000 384,036 276,285 2,311,321
2022 1.390 1,689,000 360,955 259,680 2,309,635
2023 1.390 1,728,000 337,346 242,695 2,308,041
2024 1.390 1,768,000 313,187 225,315 2,306,502
2025 1.390 1,808,000 288,473 207,535 2,304,008
2026 1.390 1,850,000 263,197 189,350 2,302,547
2027 1.390 1,893,000 237,336 170,745 2,301,081
2028 1.390 1,935,000 210,877 151,710 2,297,587
2029 1.390 1,981,000 183,821 132,245 2,297,066
2030 1.390 2,026,000 156,132 112,325 2,294,457
2031 1.390 2,072,000 127,811 91,950 2,291,761
2032 1.390 2,120,000 98,843 71,110 2,289,953
2033 1.390 2,169,000 69,208 49,790 2,287,998
2034 1.390 2,219,000 38,885 27,975 2,285,860
2035 1.390 1,130,000 7,854 5,650 1,143,504
$ 35,750,000 $ 5,326,446 $ 3,831,975 $ 44,908,421
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
1.39% interest rate. Principal is disbursed on this loan as needed. Future payments will be adjusted if all
principal of this loan is not disbursed. At June 30, 2015, $28,374,137 of this loan had been disbursed.
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, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
$3,969,934 Business Park Land Purchase Loan due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
$ 3,969,934 $ 630,066 $ 4,600,000
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 twelve months from the closing date of the sale.
60
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE E - LONG-TERM OBLIGATIONS - Continued
The annual requirements to amortize all debt outstanding as of June 30, 2015, including total interest
payments of $20,058,809, are as follows:
Special Leashold
Year Ending Obligation Revenue Revenue Promissory
June 30,Bonds Bonds Bonds Note Total
2016 319,380$ 8,477,402$ 2,484,594$ 460,000$ 11,741,376$
2017 326,586 8,494,375 2,488,594 460,000 11,769,555
2018 337,636 7,488,915 2,488,994 460,000 10,775,545
2019 127,196 8,396,427 1,660,794 460,000 10,644,417
2020 128,484 7,347,138 - 460,000 7,935,622
2021 129,494 7,221,510 - 460,000 7,811,004
2022 130,244 5,556,804 - 460,000 6,147,048
2023 130,781 5,556,157 - 460,000 6,146,938
2024 130,969 5,553,971 - 460,000 6,144,940
2025 260,940 5,550,343 - 460,000 6,271,283
2026 - 5,551,273 - - 5,551,274
2027 - 5,550,366 - - 5,550,366
2028 - 5,549,625 - - 5,549,625
2029 - 5,550,594 - - 5,550,594
2030 - 5,548,345 - - 5,548,345
2031 - 5,477,814 - - 5,477,814
2032 - 5,479,341 - - 5,479,341
2033 - 4,505,945 - - 4,505,945
2034 - 4,503,528 - - 4,503,528
2035 - 2,245,715 - - 2,245,715
2,021,710$ 119,605,588$ 9,122,976$ 4,600,000$ 135,350,275$
The cash and investments available to service revenue bonds are $57,209 and $2,075,661 for the
governmental and business-type activities, respectively.
The cash and investments available to service the special obligation bonds are $156,097 and $11,829 in
governmental activities and business-type activities, respectively.
61
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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 $617,890
Total $617,890
Business-Type Activities:
Golf Course $ 4,730
Sewer 1,206,687
Sporting Complexes 4,119
Solid Waste 11,404
Water 392,250
Total $ 1,619,190
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 $30,091,579.
NOTE F - DEFICIT FUND BALANCES/RETAINED EARNINGS
These following funds - Housing Development Grant, Street Capital Improvement, Storm Water
System Improvements, and Park System Improvements – had their total liabilities exceed their total
assets by $18,058, $192,091, $36,623, and $83,838, respectively
NOTE G - PENSION PLAN
1. Plan Description
The City of Cape Girardeau’s defined benefit pension plan provides certain retirement, disability, and
death benefits to plan members and beneficiaries. The City participates in the Missouri Local
Government Employees Retirement System (LAGERS).
LAGERS is an agent multiple-employer, statewide public employee pension plan established in 1967
and administered in accordance with RSMo. 70.600-70.755. As such, it is LAGERS 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 is tax exempt. The responsibility for the
operations and administration of LAGERS is vested in the LAGERS Board of Trustees consisting of
seven persons.
LAGERS issues a publicly available financial report that includes financial statements and required
supplementary information. This report may be obtained by accessing the LAGERS website at
www.molagers.org. This report may be obtained by writing to LAGERS, PO Box 1665, Jefferson City,
MO 65102 or by calling 1-800-447-4334.
62
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE G - PENSION PLAN – Continued
2. Benefits Provided
LAGERS provides retirement, death, and disability benefits. Benefit provisions are adopted by the
governing body of the employer, within the options available in the state statutes governing LAGERS.
All benefits vest after 5 years of credited service. Employees who retire on or after age 60 (55 for police
and fire) with 5 or more years of service are entitled to an allowance for life based upon the benefit
program information provided below. Employees may retire with an early retirement benefit with a
minimum of 5 years of credited service and after attaining age 55 (50 for police and fire) and receive a
reduced allowance.
The City is providing benefits to its current employees under the LT-8 (65) benefit program available
through LAGERS. Future benefits will be based on the final 3 year average salary multiplied 1.50%
and by years of service. The future benefits are multiplied by 2.00% until age 65. The final 3 year
average equals the 36 consecutive months of credited services producing the highest monthly average
during the last 120 consecutive months of credited service immediately preceding retirement.
Benefit terms provide for annual post-retirement adjustments to each member’s retirement allowance
subsequent to the member’s retirement date. The annual adjustment is based on the increase in the
Consumer Price Index and is limited to 4% per year.
3. Covered Employees
At June 30, 2015 the following employees were covered by the benefits terms:
Retirees and Beneficiaries 232
Inactive, Non-retired Members 128
Active Members 367
Total 727
4. Contributions
Full-time employees of the City of Cape Girardeau do not contribute to the pension plan. The City is
required to contribute amounts at least equal to the actuarially determined rate, as established by
LAGERS. The actuarially determined rate is the estimated amount necessary to finance the cost of
benefits earned by employees during the year, with an additional amount to finance an unfunded
accrued liability. Employer annual contribution rates were 9.8% (General), 11.2% (Police) and 13.0%
(Fire) of annual covered payroll during the current year.
63
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE G - PENSION PLAN – Continued
5. Net Pension Asset
The City’s net pension asset was measured as of June 30, 2015, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of February 28, 2015.
6. Actuarial Assumptions
The total pension liability in the February 28, 2015 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.5% wage inflation, 3% price inflation
Salary Increase 3.5% to 6.8% including wage inflation
Investment Rate of Return 7.25% net of investment and administrative expenses
Mortality rates were based on 105% of the 1994 Group Annuity Mortality Table set back 0 years for
both males and females.
The actuarial assumptions used in the February 28, 2015 valuation were based on the results of an
actuarial experience study for the period March 1, 2010 through February 28, 2010.
The long-term expected rate of return on pension plan investments was determined using a model
method in which the best-estimate ranges of expected future real rates of return (expected returns, net
of investment expenses and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are summarized
in the following table:
7. Discount Rate
The discount rate used to measure the total pension liability is 7.25%. The projection of cash flows
used to determine the discount rate assumes that the City’s contributions will be made at the actuarially
determined rates. Based on these assumptions, the pension plan’s fiduciary net position was projected
to be available to pay all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods
of projected benefit payment to determine the total pension liability.
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Equity 48.50% 5.50%
Fixed Income 25.00% 2.25%
Real Assets 20.00% 4.50%
Strategic Assets 6.50%7.50%
64
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE G - PENSION PLAN – Continued
8. Changes in the Net Pension Asset
Increase (Decrease)
Plan Fiduciary Total Pension Net Pension
Net Position Liability Asset
(a) (b) (a) – (b)
Balances at 6/30/2014 $75,195,148 $66,296,844 $8,898,304
Changes for the year:
Service Cost 1,442,523 (1,442,523)
Interest 4,743,140 (4,743,140)
Difference between expected and actual experience (344,004) 344,004
Contributions – employer 3,761,696 3,761,696
Net investment income 1,449,891 1,449,891
Benefit payments, including refunds (3,222,117) (3,222,117) -
Administrative expense (64,218) (64,218)
Other changes 135,512 135,512
Net changes 2,060,764 2,619,542 (558,778)
Balances at 6/30/2015 $77,255,912 $68,916,386 $8,339,526
Net Pension Asset(Liability) of the City, calculated using the discount rate of 7.25%, as well as what
the City’s Net Pension Asset(Liability) would be using a discount rate that is 1 percentage point lower
(6.25%) or one percentage point higher (8.25%) than the current rate.
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.25% 7.25% 8.25%
$(925,761) $8,339,526 $16,053,455
10. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended June 30, 2015 the City recognized pension expense of $1,400,430. The
employer reported deferred outflows and inflows of resources related to pensions from the following
sources:
Net
Deferred Deferred Outflows
Outflows Inflows (Inflows)
of Resources of Resources of Resources
Differences in experience $ 227,230 $ (525,996) $ (298,766)
Differences in assumptions - - -
Excess (deficit) in investment returns 3,218,810 - 3,218,810
Total $ 3,446,040 $ (525,996) $ 2,920,044
65
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE G - PENSION PLAN – Continued
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year ended:
2016 $ 759,465
2017 759,465
2018 759,465
2019 759,463
2020 (54,243)
Thereafter (63,571)
Total $ 2,920,044
11. Payable to the Pension Plan
At June 30, 2015 the City reported a payable of $127,005.56 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2015.
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS
1. Description
The City follows the provisions of GASB Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions. In addition to the relevant disclosures
within this note related to GASB Statement No. 45, the financial statements reflect a long-term liability
and related expenses of $2,715,234 and $871,799, 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 retirees are 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
self-insured programs on behalf of its eligible retirees, no stand-alone financial report is either available
or generated.
66
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
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 July 1, 2010, employees
hired on or after that date will not qualify for retiree healthcare coverage. 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, 2015, the City
paid the full premium cost for eligible retired employees who were hired prior to January 1, 2007. For
eligible employees hired on/after January 1, 2007, the City paid a percentage of the full premium cost
for retired employees with single coverage according to years of service at retirement. For employees
with 10 to 14 years of service at retirement the City’s subsidy was 50%. The subsidy for employees
with 15 to 19 years of service was 60%, 20 to 24 years was 70%, and employees with more than 24
years of service at retirement received 100% subsidy. The retiree is responsible for the full cost of
dependent coverage. The plan is financed on a pay-as-you-go basis.
3. Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the
City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The
ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost
each year and amortize any unfunded actuarial liabilities (or funding excess) over a period of 30 years.
The following table illustrates the components of the City’s annual OPEB cost for the year, the amount
actually contributed to the Plan, and changes in the City’s net OPEB obligation:
2014 2015
Annual required contribution $ 918,466 $ 871,799
Interest on net OPEB obligation 12,564 119,775
Adjustment to annual required contribution (153,566) (163,404)
Annual OPEB cost $ 877,464 $ 828,170
Contributions made (717,222) (774,600)
Increase in net OPEB obligation $ 160,242 $ 53,570
Net OPEB obligation, July 1 2,501,422 2,661,664
Net OPEB obligation, June 30 $ 2,661,664 $ 2,715,234
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net
OPEB obligation for 2013 - 2015 were as follows:
Percentage of Net OPEB
Fiscal Year Annual Annual OPEB Obligation -
Ended OPEB Cost Cost Contributed End of Year
6/30/15 $ 828,170 93.5% $2,715,234
6/30/14 877,464 81.7% 2,661,664
6/30/13 897,770 84.9% 2,501,422
67
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS - Continued
4. Funding Status and Funding Progress
As of July 1, 2014, the most recent actuarial valuation date, the Plan was not funded. The actuarial
accrued liability for benefits equaled $8,885,043, resulting in an unfunded actuarial accrued liability
(UAAL) of $8,885,043. The covered payroll (annual payroll of active employees covered by the Plan)
equaled $15,230,886, and the ratio of the UAAL to the covered payroll equaled 58.3%.
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 information about whether the actuarial
value of the Plan assets is increasing or decreasing over time relative to the actuarial accrued liability
for benefits. However, because the City maintains no Plan assets, information relative to Plan asset
required disclosures is not applicable.
5. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive Plan (the Plan as
understood by the City and Plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the City and Plan members
to that point. There are no legal or contractual funding limitations that would potentially affect the
projection of benefits for financial accounting purposes. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities, consistent with the long-term perspective of the calculations.
In the actuarial valuation dated July 1, 2014, 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 $661,554, excluding $1,806 of interfund interest, were incurred
by governmental funds during the year ended June 30, 2015. Interest and handling charges, totaling
$1,610,340 excluding $8,849 of interfund interest, were incurred by proprietary funds during the year
ended June 30, 2015. No interest cost was capitalized as part of the cost of assets constructed during the
period.
68
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE J - INTERFUND ACTIVITY
The City makes transfers between various funds for routine and normal operating expenses and for
capital asset acquisitions.
A. The following is a summary of interfund transfers for the year ended June 30, 2015:
Fund Transfer From Transfer To
General Fund $ 5,118,473 $ 6,795,999
Airport Fund - 590,728
Park and Recreation Fund 3,422 1,272,200
Health - 1,403
Public Safety Trust Fund 877,250 1,754,501
A.C. Brase Foundation 30,000 -
Park & Rec Foundation 6,989 -
Public Safety Trust Fund II 377,667 755,333
Casino Revenue Fund 486,003 260,000
Riverfront Region Economic Dev Fund - 171,003
Housing Development Fund - 19,745
Motor Fuel Tax Fund 1,120,000 25,637
Transportation Sales Trust I 25,637 -
Transportation Sales Trust II 1,562 -
Transportation Sales Tax Trust III - 1,562
Transportation Sales Tax Trust IV - 260,000
Cap Imp Sales Tax - Water System Improve 3,140,881 36
Cap Imp Sales Tax - Sewer System Improve 1,627,500 -
Park/Storm Water Sales Tax-Capital 700,116 30,000
Fire Sales Tax 2,509,834 -
Parks/Storm Water Sales Tax 1,384,563 -
Debt Service 26,335 -
Park Capital Improvements - 17,624
CDBG Project Fund - 1,664,245
Wat Sys Impr Projects Fund 36 -
Storm Water Systems Improvements 174,800 586,730
Park System Improvements 17,624 255,863
Sewer Fund 3,422 2,242,501
Water Fund 2,000 1,567,353
Solid Waste Fund - 587,895
Golf Course Fund - 128,682
Sporting Complexes Fund - 637,448
IT Fund - 10,665
Fleet Management Fund 20,660 37,516
Employee Benefits Fund 1,650,000 -
Fringe Benefits Fund 369,895 -
$ 19,674,669 $ 19,674,669
69
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE J - INTERFUND ACTIVITY - Continued
B. The following is a summary of interfund balances as of June 30, 2015:
Advance to/from other funds:
Advances from Advances to
General Fund $ 137,231 $ -
Casino Revenue Fund 488,335
Solid Waste Fund - 488,335
Golf Course Fund - 70,098
Softball Complex Fund - 67,133
$ 625,566 $ 625,566
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.
NOTE K - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City maintains five enterprise funds that provide sewer, water, solid waste, golf, and sporting
complex services. Segment information for the year ended June 30, 2015 was as follows:
Sporting
Sewer Water Solid Waste Golf Course Complexes Total
Fund Fund Fund Fund Fund Enterprise
Operating revenues $ 7,005,529 $ 6,257,541 $3,342,171 $ 475,296 $ 377,565 $17,458,102
Depreciation 3,247,885 1,667,681 408,017 95,024 158,925 5,577,532
Operating Income (Loss) 30,442 (239,595) 47,229 (206,879) (727,802) (1,096,605)
Operating Transfers In 2,242,501 1,567,353 587,895 128,682 637,448 5,163,879
Net Income (Loss) 2,863,277 1,122,219 637,352 (81,338) (33,778) 4,507,732
Current Capital Contributions 1,553,210 120,334 - - 55,622 1,729,166
Property, Plant and Equipment
Additions 24,877,438 1,434,816 338,238 - 55,622 26,706,114
Deletions 552,545 80,086 114,289 - - 746,920
Net Working Capital (2,952,233) 6,666,598 517,372 (5,249) 82,991 4,309,479
Total Assets 128,395,307 50,893,576 3,445,376 1,425,051 2,260,948 186,420,258
Current Liabilities 9,310,953 2,022,107 371,417 86,963 93,032 11,884,472
Long-Term Liabilities 69,548,553 11,662,202 558,089 94,999 43,234 81,907,077
Amounts payable to other funds - - 488,335 70,098 67,133 625,566
Total Liabilities 78,859,506 13,684,309 1,417,841 252,059 203,399 94,417,114
Total Net Position $ 49,692,130 $ 37,238,007 $2,135,003 $ 1,195,760 $2,096,264 $92,357,164
70
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE L – GOVERNMENTAL FUND BALANCES REPORTING
In order to improve the usefulness and understandability of governmental fund balance information, the
Governmental Accounting Standards Board issued Statement No. 54, in which it classified fund
balance into the following categories: Nonspendable, Restricted, Committed, Assigned, and
Unassigned. Definition of each category and a reconciliation of how the City of Cape Girardeau
reported its Fund Balance follow.
Nonspendable Fund Balance – Includes amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact. The “not in spendable
form” criterion includes items that are not expected to be converted to cash, for example, inventories
and prepaid amounts. It also includes long-term receivables that are not currently available for
expenditure. These financial statements reflect non-spendable fund balances of $2,100 that are legally
restricted to provide for the perpetual care and maintenance of a mausoleum in the City’s cemetery.
Only interest earnings on this amount can be used for mausoleum maintenance. Prepaid expenses of
$180,885 and long-term advance receivables of $625,566 are also reflected as non-spendable fund
balances.
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 $4,953,920 are
restricted by the City Charter to use during officially declared emergencies. Special revenue fund
balances totaling $27,582,735 are restricted by their enabling legislation. $(34,754) in capital project
fund balances are restricted as the result of special revenue transfers and unspent bond proceeds. The
remaining $92,746 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
council or a city official authorized by the city council; the amount reported as assigned should not
result in a deficit in unassigned fund balance.
71
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE L – GOVERNMENTAL FUND BALANCES REPORTING – Continued
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, then related committed balances, next related assigned balances, and finally unassigned balances.
Expenditures for a specifically-identified purpose will reduce the specific classification of fund balance
that is identified.
Major
Special Revenue Funds
General
Fund
Airport
Fund
Parks and
Recreation
Fund
Casino
Revenue
Transportati
on
Sales Tax
Trust Fund
IV
Other
Funds
Total
Fund balances
Nonspendable:
Prepaid expenses $ 125,596 $ 15,320 $ 26,809 $ - $ - $ 13,160 $ 180,885
Long-term advance 137,231 - - 488,335 - - 625,566
Mausoleum 2,100 - - - - - 2,100
Restricted for:
Mausoleum 92,746 - - - - - 92,746
Emergencies 4,481,729 - - - - 472,191 4,953,920
Convention and tourism - - - - - 689,847 689,847
Community development - - - - - 75,162 75,162
Public safety - - - - - 533,966 533,966
Street projects - - - - 8,465,284 4,329,182 12,794,466
Water system projects - - - - - 4,934,786 4,934,786
Sewer system projects - - - - - 3,881,071 3,881,071
Parks and recreation - - - - - 230,786 230,786
Park and storm water
projects
- - - - - 3,956,792 3,956,792
Other capital projects - - - - - 451,105 451,105
Committed:
Other capital projects - - - 4,490,648 - - 4,490,648
Assigned to:
Airport - 115,320 - - - - 115,320
Parks and recreation - - 399,173 - - - 399,173
Operations and Maintenance - - 25,420 - - - 25,420
Encumbrances 118,759 21,084 2,203 - - - 142,046
Public safety - - - - - 266,099 266,099
Other capital projects - - - - - 31,242 31,242
Parks and recreation - - - - - 428,333 428,333
Street projects - - - - - (192,091) (192,091)
Unassigned: 2,731,863 - - - - - 2,731,863
$ 7,690,024 $ 151,724 $ 453,605 $ 4,978,983 $ 8,465,284 $20,101,631 $41,841,251
72
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE M - PROPRIETARY FUNDS RESTRICTED NET ASSETS AND RESTRICTED CASH
EQUIVALENTS AND INVESTMENTS.
At June 30, 2015, net assets restricted for depreciation and replacement were $127,000 and $150,000
for the City’s Sewer and Water Funds, respectively, and net assets restricted for emergencies were
$1,647,729, $908,804, and $333,549 for the City’s Sewer, Water, and Solid Waste Funds, respectively.
At June 30, 2015, the City’s Sewer Fund had restricted cash equivalents in sinking reserve funds for
Revenue Bonds in the amount of $5,903,024.
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
$33,750 as of June 30, 2015, 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,
2015. 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.
NOTE O - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; natural disasters; and employee health benefits. These risks, with the
exception of those discussed in the following paragraphs, are covered by commercial insurance. Settled
claims have not exceeded this commercial coverage in any of the past twelve 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 of
over 900 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 fourteen years and has used them to offset the
cost of the succeeding year’s premiums.
73
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
Vehicle loss and accident liability is carried by Savers Property and Casualty Insurance. It is rated
“B++” 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 $3,400,000 and $3,500,000 annually
beginning January 1, 2014 and 2015, 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 93.9% and 87.0% of the
aggregate stop loss amount for fiscal years ending June 30, 2014 and 2015, respectively.
Corporate Claims Management, Inc. administers the City’s workers’ compensation plan. Under this
plan, the City pays the administrator a per-claim fee to administer its claims. All claims are paid
directly by the City. The City has purchased insurance coverage from Safety National Casualty Corp.
that limits the City’s maximum individual claims liability to $550,000 for USL & H and $500,000 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.
74
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE O - RISK MANAGEMENT – Continued
Claims liability is estimated using data supplied by the administrator. The claims activity during the
last five years is summarized as follows:
CLAIMS LIABILITIES RECONCILIATION
Health Workers’
Insurance Compensation Total
Balance June 30, 2010 $ 131,000 $ 520,000 $ 651,000
Provision for Incurred Claims 2,238,055 106,108 2,344,163
Payment of Claims (2,171,055) (526,108) (2,697,163)
Balance June 30, 2011 $ 198,000 $ 100,000 $ 298,000
Provision for Incurred Claims 2,847,800 436,715 3,284,515
Payment of Claims (2,820,300) (251,715) (3,072,015)
Balance June 30, 2012 $ 225,500 $ 285,000 $ 510,500
Provision for Incurred Claims 2,452,823 112,448 2,565,271
Payment of Claims (2,471,323) (152,448) (2,623,771)
Balance June 30, 2013 $ 207,000 $ 245,000 $ 452,000
Provisions for Incurred Claims 2,400,637 591,973 2,992,610
Payment of Claims (2,371,637) (535,973) (2,907,610)
Balance June 30, 2014 $ 236,000 $ 301,000 $ 537,000
Provisions for Incurred Claims 2,614,968 283,108 2,898,076
Payment of Claims (2,689,968) (364,108) (3,054,076)
Balance June 30, 2015 $ 161,000 $ 220,000 $ 381,000
NOTE P - CONCENTRATION OF CREDIT RISK/BAD 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 position.
At June 30, 2015, utility receivables totaled $2,931,745. On the financial statements, the utility
receivables are shown net of the allowance for doubtful accounts of $227,854. This results in net utility
receivable of $2,703,891. During the year ended June 30, 2015, the allowance was increased by
$202,792 or approximately 1.26% of the current year’s utility charges and accounts totaling $184,465
were written off.
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.
75
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE Q - COMMITMENTS AND CONTINGENCIES
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, 2015, the City had construction commitments outstanding of $4,365,258. The
construction commitments represent incomplete portions of contracts entered into to construct the
following: new Wastewater Treatment Plant, various street, sanitary sewer, and storm sewer projects, a
recreation trail and the Meadowbrook water storage project. These contracts are expected to be
completed within the next fiscal year.
4. Encumbrances
As of June 30, 2015, the City had encumbrances outstanding of $7,446,686.
NOTE R – PRIOR PERIOD ADJUSTMENTS
The net position of the governmental activities and business-type activities have been increased by
$18,317,169.35 and $944,689.48, respectively, as of June 30, 2015, from transactions that occurred in
previous years. The most significant adjustment to the government activities was an $11,122,485.37
increase to its net position. This adjustment resulted from recording the June 30, 2014 book value of the
Mississippi River Flood Wall. The flood wall had been transferred to the City by the Main Street
Levee and Improvement District and the North Main Street Levee and Improvement District in June of
2008 but had not been recognized on the City’s financial statements. The net position of the
governmental activities was also increased by $12,723.12 from recognizing improvements to a building
at the Cape Girardeau Regional Airport that were contributed by a tenant in a previous year.
During the current year, the City implemented GASB Statement No. 68, which require cities that
contribute to a defined benefit pension plan to recognize the net pension asset/liability and the pension
expense related to its plan on their financial statements. The net assets of the governmental activities
and business-type statements have been increased by $7,710,096.88 and $1,188,207.12 as a result of its
implementation. The adjustments reflect the net pension assets as of June 30, 2015. Net pension assets
are the amount by which the net position of the City’s plan exceeded its total pension liability.
Adjustments to fixed assets for projects that had previously been reported as construction in progress
in previous periods but ended up not meeting the City’s capitalization threshold or were abandoned
during the current year resulted in changes that decreased the net position of the governmental
activities and business-type activities by $500,337.98 and $65,457.29, respectively, as of June 30,
2015.
During the previous year, the liability for compensated absences was overstated by $18,384.54.
Correction of this overstatement resulted in an increase to the net position of the government activities
during the current year.
76
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
In the previous year, fund balances of the general, airport, parks and recreation, and other governmental
funds were overstated by $46,182.58. Corrections of these overstatements resulted in a decrease to the
net position of the government activities during the current year. These overstatements resulted from
recognition of $31,958.55 in revenue that had been collected but not earned at June 30, 2014,
nonrecognition of $6,959.54 in revenue that had been earned in June 30, 2014 and collected early in the
current year, and the $21,183.57 under recognition of utility expense in the fiscal year ending June 30,
2014.
In the previous year fund balances of the sewer, water, solid waste, golf, and sporting complexes were
overstated (understated) by ($24,816.75), $134,541.56, ($.01), $35,486.05, and $32,449.48,
respectively. Correction of these items resulted in a $178,060.35 decrease to the net position of the
business activities during the current year. Almost all of the sewer fund adjustment related to the
overstatement of a payable related to prior year’s debt service costs. The water fund adjustment related
to the overstatement of the June 30, 2014 inventory amount that was discovered during the current year.
The golf and sporting complex adjustments related to the recognition of revenue received during the
previous year but not earned until the current year.
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 completed these improvements at a cost of $2,668,646. The development agreement
required the City to reimburse the local business for $2,134,917 of these costs through
scheduled quarterly payments over 15 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, 2015, 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
77
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE S - CONTINGENCY – Continued
local business for the $2,998,434 cost of these improvements plus 4% interest with quarterly
payments from available net sales tax revenue generated from any businesses operations located
in the development.
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 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 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 additional costs of public improvements up
to $3,000,000. Academy Sports began operation in May 2013. No accounting of the additional
public improvement costs has been received by the City. The City and County are required by
the development agreement to reimburse the developer for the additional public improvement
costs related to Academy Sports 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 50% 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, 2015, the City incurred payments of $282,082 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
78
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2015
NOTE S - CONTINGENCY – Continued
Improvement District (CID) and determined the project area to be blighted pursuant to Chapter
353 of the Missouri Revised Statutes.
This project involved 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 million of the $3.6 million
total.
Incremental County and City sales tax revenue was 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. The CID implemented 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 at a cost of $3,203,308. Reimbursement from incremental County
and City sales tax revenue is 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, 2015, the City
incurred payments of $9,210 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, 2015
NOTE S - CONTINGENCY – Continued
The local developer has completed all public improvements at a cost of $2,943,843. The City is
required by the development agreement to reimburse the developer for these costs from
available revenues. Available revenue is defined by the agreement as all the net sales tax
revenue generated by two .25% City capital improvement sales taxes and the .50% City
transportation sales tax that exceed a baseline amount. All City sales taxes have expiration dates
that could occur before the total costs of the improvements are reimbursed to the developer. No
provision is made to replace revenues from the City sales taxes that expire if they are not
extended. The development agreement expires 15 years after 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,
2015, the City incurred $272,783 under the development agreement.
NOTE S – Special Item
On May 6, 2015 the City made a $2,019,895 lump-sum payment to its retirement plan, the Missouri
Local Government Employees Retirement System (LAGERS), to fund its unfunded actuarial accrued
liabilities calculated by a February 28, 2014 actuarial valuation. The portion of this payment that
related to governmental employees, $1,701,993.61, is reflected as a special item on the statement of
revenue, expenditures, and changes in fund balances for governmental funds. The remaining amount
was reflected as an increase to the net pension assets on the statement of net position for proprietary
funds. Transfers equal to the amount of payment from each fund were received from the employee
fringe benefits and workmen’s compensation funds.
This payment is reflected as a $1,750,174.66 increase in net pension assets from governmental
activities and as $269,780.34 increase in net pension assets from business-type activities on the
statement of net position.
NOTE T – Subsequent Event
In October 2015, the City entered into a direct loan agreement and promissory note with the Missouri
Highways and Transportation Commission for the purpose of replacing a city bridge at a cost of
$3,965,100. The agreement is for ten years commencing on October 1, 2015, with the first payment
due on September 1, 2016 at a 3.26% interest rate.
REQUIRED SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 16,780,426.00 $ 16,780,426.00 $ 17,123,365.33 $ 342,939.33
Licenses & permits 1,645,112.00 1,645,112.00 1,575,202.27 (69,909.73)
Intergovernmental 493,193.00 493,193.00 718,151.85 224,958.85
Charges for services 238,900.00 238,900.00 192,086.58 (46,813.42)
Internal charges 963,736.00 963,736.00 1,026,894.86 63,158.86
Fines and forfeits 1,022,000.00 1,022,000.00 704,966.50 (317,033.50)
Miscellaneous 345,640.00 345,640.00 482,764.69 137,124.69
Investment revenue 73,917.00 73,917.00 81,505.94 7,588.94
Total revenues $ 21,562,924.00 $ 21,562,924.00 $ 21,904,938.02 $ 342,014.02
EXPENDITURES
Current:
Administrative Services $ 2,717,737.00 $ 2,565,152.56 $ 2,432,658.08 $ 132,494.48
Development Services 2,360,310.00 2,569,240.27 2,386,940.63 182,299.64
Parks and Recreation 1,689,341.00 1,716,815.76 1,687,523.59 29,292.17
Public Safety 12,805,397.00 13,051,790.49 12,839,834.83 211,955.66
Public Works 2,775,700.00 3,022,716.73 2,894,239.45 128,477.28
Total current $ 22,348,485.00 $ 22,925,715.81 $ 22,241,196.58 $ 684,519.23
Debt service:
Administrative charges $ - $ - $ 477.00 $ (477.00)
Principal 101,000.00 374,000.00 374,000.00 -
Interest 54,894.00 54,894.00 53,719.22 1,174.78
Total debt service $ 155,894.00 $ 428,894.00 $ 428,196.22 $ 697.78
Capital outlay:
Administrative Services $ - $ 6,981.00 $ 6,981.00 $ -
Development Services - 6,821.22 6,821.22 -
Public Safety - 86,936.00 80,969.84 5,966.16
Public Works - 9,000.00 7,972.00 1,028.00
Parks and Recreation 20,800.00 36,186.94 12,165.80 24,021.14
Total capital outlay 20,800.00 145,925.16 114,909.86 31,015.30
Total expenditures 22,525,179.00 23,500,534.97 22,784,302.66 716,232.31
Excess (deficiency) of revenues over expenditures $ (962,255.00) $ (1,937,610.97) $ (879,364.64) $ 1,058,246.33
OTHER FINANCING SOURCES (USES)
Compensation for damages $ - $ - $ 33,646.98 $ 33,646.98
Special assessments 5,500.00 5,500.00 25,793.68 20,293.68
Advance repayments 52,794.00 52,794.00 557,610.90 504,816.90
Asset disposition - - 21,759.38 21,759.38
Transfers in 4,643,594.00 5,326,694.00 5,204,588.14 (122,105.86)
Transfers out (3,987,052.00) (5,142,491.33) (5,118,472.63) 24,018.70
Total other financing source (uses) $ 714,836.00 $ 242,496.67 $ 724,926.45 $ 482,429.78
Net change in fund balances (247,419.00) (1,695,114.30) (154,438.19) 1,540,676.11
Fund balances - beginning 7,622,388.72 7,622,388.72 7,622,388.72 -
Fund balances - ending $ 7,374,969.72 $ 5,927,274.42 $ 7,467,950.53 $ 1,540,676.11
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 257,000.00 $ 257,000.00 $ 280,548.13 $ 23,548.13
Charges for services 360,014.00 360,014.00 367,561.78 7,547.78
Miscellaneous 265,262.00 265,262.00 275,262.97 10,000.97
Investment revenue 450.00 450.00 380.41 (69.59)
Total revenues $ 882,726.00 $ 882,726.00 $ 923,753.29 $ 41,027.29
EXPENDITURES
Current:
Development Services $ 1,335,446.00 $ 1,469,060.11 $ 1,457,825.08 $ 11,235.03
Total current $ 1,335,446.00 $ 1,469,060.11 $ 1,457,825.08 $ 11,235.03
Debt service:
Interest $ - $ - $ 120.09 $ (120.09)
Total debt service $ - $ - $ 120.09 $ (120.09)
Capital outlay:
Development Services $ 12,300.00 $ 20,241.08 $ 7,941.00 $ 12,300.08
Total capital outlay $ 12,300.00 $ 20,241.08 $ 7,941.00 $ 12,300.08
Total expenditures $ 1,347,746.00 $ 1,489,301.19 $ 1,465,886.17 $ 23,415.02
Excess (deficiency) of revenues over expenditures $ (465,020.00) $ (606,575.19) $ (542,132.88) $ 64,442.31
OTHER FINANCING SOURCES (USES)
Transfers in $ 465,020.00 $ 584,630.00 $ 543,950.00 $ (40,680.00)
Total other financing source (uses) $ 465,020.00 $ 584,630.00 $ 543,950.00 $ (40,680.00)
Net change in fund balances $ - $ (21,945.19) $ 1,817.12 $ 23,762.31
Fund balances - beginning 132,492.12 132,492.12 132,492.12 -
Fund balances - ending $ 132,492.12 $ 110,546.93 $ 134,309.24 $ 23,762.31
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Airport Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 1,335,215.00 $ 1,335,215.00 $ 1,303,203.17 $ (32,011.83)
Miscellaneous - - 8,999.26 8,999.26
Investment revenue 5,000.00 5,000.00 5,496.16 496.16
Asset disposition - - 227.61 227.61
Total revenues $ 1,340,215.00 $ 1,340,215.00 $ 1,317,926.20 $ (22,288.80)
EXPENDITURES
Current:
Parks and Recreation $ 2,557,324.00 $ 2,631,746.65 $ 2,515,727.68 $ 116,018.97
Total current $ 2,557,324.00 $ 2,631,746.65 $ 2,515,727.68 $ 116,018.97
Capital outlay:
Parks and Recreation - 18,300.00 - 18,300.00
Total capital outlay - 18,300.00 - 18,300.00
Total expenditures 2,557,324.00 2,650,046.65 2,515,727.68 134,318.97
Excess (deficiency) of revenues over expenditures $ (1,217,109.00) $ (1,309,831.65) $ (1,197,801.48) $ 112,030.17
OTHER FINANCING SOURCES (USES)
Transfers in 1,217,109.00 1,312,026.00 1,209,798.39 (102,227.61)
Transfers out - (3,421.86) (3,421.86) -
Total other financing source (uses) 1,217,109.00 1,308,604.14 1,206,376.53 (102,227.61)
Net change in fund balances - (1,227.51) 8,575.05 9,802.56
Fund balances - beginning 460,656.88 460,656.88 460,656.88 -
Fund balances - ending $ 460,656.88 $ 459,429.37 $ 469,231.93 $ 9,802.56
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Parks and Recreation Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 3,050,000.00 $ 3,050,000.00 $ 3,268,825.19 $ 218,825.19
Investment revenue - - 56,468.60 56,468.60
Total revenues $ 3,050,000.00 $ 3,050,000.00 $ 3,325,293.79 $ 275,293.79
EXPENDITURES
Current:
Administrative services $ 300,000.00 $ 877,499.79 $ 583,797.15 $ 293,702.64
Public safety - - 22,864.12 (22,864.12)
Total current $ 300,000.00 $ 877,499.79 $ 606,661.27 $ 270,838.52
Debt service:
Principal $ 340,598.00 $ 340,598.00 $ 340,598.27 $ (0.27)
Interest 119,402.00 119,402.00 119,401.73 0.27
Total debt service $ 460,000.00 $ 460,000.00 $ 460,000.00 $ (0.00)
Capital outlay:
Capital improvement projects $ 142,400.00 $ 830,318.73 $ 418,038.15 $ 412,280.58
Total capital outlay $ 142,400.00 $ 830,318.73 $ 418,038.15 $ 412,280.58
Total expenditures $ 902,400.00 $ 2,167,818.52 $ 1,484,699.42 $ 683,119.10
Excess (deficiency) of revenues over expenditures $ 2,147,600.00 $ 882,181.48 $ 1,840,594.37 $ 958,412.89
OTHER FINANCING SOURCES (USES)
Transfers in $ 260,000.00 $ 260,000.00 $ 260,000.00 $ -
Transfers out (428,000.00) (678,000.00) (486,002.93) 191,997.07
Total other financing source (uses) $ (168,000.00) $ (418,000.00) $ (226,002.93) $ 191,997.07
Net change in fund balances $ 1,979,600.00 $ 464,181.48 $ 1,614,591.44 $ 1,150,409.96
Fund balances - beginning 2,566,495.79 2,566,495.79 2,566,495.79 -
Fund balances - ending $ 4,546,095.79 $ 3,030,677.27 $ 4,181,087.23 $ 1,150,409.96
Budgeted Amounts
City of Cape Girardeau
Casino Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ 20,000.00 $ 20,000.00 $ 42,390.95 $ 22,390.95
Total revenues $ 20,000.00 $ 20,000.00 $ 42,390.95 $ 22,390.95
EXPENDITURES
Capital outlay:
Capital improvements $ 1,148,000.00 $ 1,150,000.00 $ 1,930.00 $ 1,148,070.00
Total capital outlay $ 1,148,000.00 $ 1,150,000.00 $ 1,930.00 $ 1,148,070.00
Total expenditures $ 1,148,000.00 $ 1,150,000.00 $ 1,930.00 $ 1,148,070.00
Excess (deficiency) of revenues over expenditures $ (1,128,000.00) $ (1,130,000.00) $ 40,460.95 $ 1,170,460.95
OTHER FINANCING SOURCES (USES)
Transfers in $ - $ 1,750.00 $ 1,561.58 $ (188.42)
Total other financing source (uses) $ - $ 1,750.00 $ 1,561.58 $ (188.42)
Net change in fund balances $ (1,128,000.00) $ (1,128,250.00) $ 42,022.53 $ 1,170,272.53
Fund balances - beginning 3,206,047.10 3,206,047.10 3,206,047.10 -
Fund balances - ending $ 2,078,047.10 $ 2,077,797.10 $ 3,248,069.63 $ 1,170,272.53
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax III
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
85
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2015
BUDGETS AND BUDGETARY ACCOUNTING
The City adopts annual operating budgets for all funds except Storm Water Projects from Park /
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 an emergency
situation, the City Council may amend the initial budget by ordinance. The initial budget
was adopted by the City Council on June 16, 2014 and amended on October 6, 2014;
April 15, 2015; May 4, 2015; May 18, 2015; and July 6, 2015. The initial budget and
final amended budget are both reflected in the financial statements.
For the year ended June 30, 2015, the fund expenditures for Public Safety Trust II, Capital
Improvement Sales Tax-Sewer System, Fire Sales Tax, STP-Urban Grant Project, and Community
Development Block Grant exceeded their approved budgets by $377,344; $12,066; $56,574; $113;
and $439,383, respectively.
86
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2015
BUDGETS AND BUDGETARY ACCOUNTING - Continued
The statement of revenues, expenditures, and changes in fund balances - governmental funds reports
revenues and expenditures on the modified accrual basis of accounting in accordance with GAAP.
The statement of revenues, expenditures, and changes in fund balances - budget and actual (budget
basis) for all governmental fund types is prepared on a budgetary basis, which includes
encumbrances as expenditures.
The following reconciliation adjusts GAAP basis to budget basis:
Excess (Deficiency) of Revenues and Other
Financing Sources Over (Under) Expenditures and
Other Financing Uses
Casino Transportation
Parks and Revenue Sales Tax Trust Non-major
General Airport Recreation Fund Fund IV Funds
GAAP Basis $ (699,623) $ 16,758 $ 7,365 $ 1,341,927 $ 2,957,638 $ (126,684)
Increase due to:
Prior year-end encumbrances
Administrative services 29,245 - - - - -
Development services 14,300 30,542 - - - 51,561
Parks and recreation 850 - 3,299 - - -
Public safety 17,236 - - - - 20,986
Public works 17,790 - - - - -
Capital improvement - - - - - 19,846
Capital outlay - - - 1,067,460 392,319 737,022
Contingency 5,338 - - - - -
Advance repayments
from other funds
557,611
-
-
-
-
-
Special payment to LAGERS 1,591,411 46,778 62,401 - - -
Adjust investments to market 714 27 115 271 - 3,362
Funds not budgeted annually 216,817
Encumbrance revenue 20,860 - - - - 426,866
2,255,355 77,347 65,815 1,067,731 392,319 1,476,460
Decrease due to:
Current year-end encumbrances
Administrative services 4,826 - - - - -
Development services 13,200 18,822 - - - 26,173
Parks and recreation 3,612 - 2,204 - - -
Public safety 43,345 - - - - 83,767
Public works 37,764 - - - - -
Capital improvement - - - - - 59,890
Capital outlay 16,012 12,654 - 306,732 1,848,102 917,369
Encumbrance revenue - 14,034 - - - -
Advance made to
other funds
-
-
-
488,335
-
-
Special transfer from:
Employee fringe for LAGERS 1,221,516 46,778 62,401 - - -
Risk management for LAGERS 369,895 - - - - -
Adjust invest to market - - - - 1,181 -
1,710,170 92,288 64,605 795,067 1,849,283 1,087,199
Budget Basis $ (154,438) $ 1,817 $ 8,575 $ 1,614,591 $ 1,500,674 $ 262,577
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, 2015
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Solid Golf Softball
Sewer Water Waste Course Complex
GAAP Basis $ 2,863,277 $ 1,122,219 $ 637,352 $ (81,338) $ (33,778)
Increase due to :
Prior year encumbrances
Operating expenses 137,702 19,314 47,559 12,320 20,109
Capital outlays 11,090,241 639,654 36,107 - -
Depreciation 3,247,884 1,667,681 408,017 95,024 158,925
Special assessments 10,540 1,744 - - -
Bond proceeds 12,156,055 - - - -
Interest cost amortized 129,927 - - - -
Deferred revenue - - - - -
Capital outlays - - - - -
Interest paid more than accrual 71,584 - - - -
Amount deferred for future debt service for
capital appreciation bonds:
Interest subsidy received 29,172 - - - -
Net OPEB obligation - 3,026 3,510 33,683 728
Adjust investments to market 3,508 761 444 25 48
Asset dispositions 69,439 12,013 24,000 - -
Advance from general - - 488,335 - -
Bad debt allowance 91,917 59,269 26,814 - -
27,037,969 2,403,462 1,034,786 141,052 179,810
Decrease due to:
Year-end encumbrances
Operating expenses 274,351 13,639 15,149 - 3,758
Capital outlays 2,410,800 1,275,119 30,285 - -
Landfill closure and maintenance costs - - 1,922 - -
Interest paid more than accrual - 5,450 10,847 - -
Bond principal paid 2,344,250 545,000 1,199,661 32,537 20,257
Amortized bond premium/discount - 21,582 1,909 - -
Capital outlays 12,641,802 1,004,538 362,236 - -
Deferred revenues 82,468 114,376 90,003 - -
Adjustment to liability for future landfill
postclosure maintenance costs - - 7,828 - -
Special transfer from employee fringe for LAGERS 131,352 19,366 83,077 22,173 13,752
Net OPEB obligation 19,419 - - - -
Net pension cost 48,870 8,984 33,595 7,117 12,103
Contributed capital 1,472,040 120,334 - - 55,622
19,425,352 3,128,388 1,836,512 61,827 105,492
Budget Basis $ 10,475,894 $ 397,293 $ (164,374) $ (2,113) $ 40,540
88
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2015
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Fleet Employee Risk Equipment
IT Management Fringe Management Replacement
GAAP basis $ (143,689) $ 60,095 $(1,050,123) $(207,787) $ 137,966
Increase due to:
Prior year encumbrances
Operating expenses 107,429 936 - - -
Capital outlays - - - - -
Depreciation 141,847 25,014 - - 269,800
Deferred revenues - 15,888 - - -
Special payment to LAGERS treated
as transfers to other funds in GAAP - - 1,650,000 369,895 -
Adjust investments to market
Net OPEB Obligation
161
2,398
56
-
1,565
-
708
-
169
-
251,835 41,894 1,651,565 370,603 269,969
Decrease due to:
Year-end encumbrances
Operating expenses 26,151 1,236 - - -
Special transfer from employee
fringe for LAGERS 10,665 37,516 - - -
Net OPEB obligation - 10,567 - - -
Net pension cost
Capital outlays
Special payment to LAGERS treated
as special item in budget
-
7,406
92,019
-
19,820
6,228
1,650,000
-
-
369,895
-
-
-
-
235,552
136,241 75,367 1,650,000 369,895 235,552
Budget Basis $ (28,095) $ 26,622 $(1,048,558) $(207,079) $ 172,383
SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,104,691.00 $ 2,104,691.00 $ 2,136,403.70 $ 31,712.70
Investment revenue 2,500.00 2,500.00 6,958.51 4,458.51
Total revenues 2,107,191.00 2,107,191.00 2,143,362.21 36,171.21
EXPENDITURES
Current:
Development services $ 706,681.00 $ 784,411.35 $ 755,433.42 $ 28,977.93
Total current $ 706,681.00 $ 784,411.35 $ 755,433.42 $ 28,977.93
Capital outlay:
Development services $ - $ 1,300,000.00 $ 1,181,126.85 $ 118,873.15
Total capital outlay $ - $ 1,300,000.00 $ 1,181,126.85 $ 118,873.15
Total expenditures $ 706,681.00 $ 2,084,411.35 $ 1,936,560.27 $ 147,851.08
Excess (deficiency) of revenues over expenditures $ 1,400,510.00 $ 22,779.65 $ 206,801.94 $ 184,022.29
OTHER FINANCING SOURCES (USES)
Transfers out $ (1,430,277.00) $ (1,430,277.00) $ - $ 1,430,277.00
Total other financing source (uses) $ (1,430,277.00) $ (1,430,277.00) $ - $ 1,430,277.00
Net change in fund balances $ (29,767.00) $ (1,407,497.35) $ 206,801.94 $ 1,614,299.29
Fund balances - beginning 276,841.73 276,841.73 276,841.73 -
Fund balances - ending $ 247,074.73 $ (1,130,655.62) $ 483,643.67 $ 1,614,299.29
Budgeted Amounts
City of Cape Girardeau
Convention and Tourism Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 28,002.00 $ 28,002.00 $ 26,002.09 $ (1,999.91)
Intergovernmental - - 12,000.00 12,000.00
Investment revenue 500.00 500.00 1,171.80 671.80
Total revenues $ 28,502.00 $ 28,502.00 $ 39,173.89 $ 10,671.89
EXPENDITURES
Current:
Development Services $ 28,502.00 $ 46,502.00 $ 25,081.07 $ 21,420.93
Total current $ 28,502.00 $ 46,502.00 $ 25,081.07 $ 21,420.93
Total expenditures $ 28,502.00 $ 46,502.00 $ 25,081.07 $ 21,420.93
Excess (deficiency) of revenues over expenditures $ - $ (18,000.00) $ 14,092.82 $ 32,092.82
Net change in fund balances $ - $ (18,000.00) $ 14,092.82 $ 32,092.82
Fund balances - beginning 79,061.49 79,061.49 79,061.49 -
Fund balances - ending $ 79,061.49 $ 61,061.49 $ 93,154.31 $ 32,092.82
Budgeted Amounts
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, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 352,561.00 $ 352,561.00 $ 351,773.26 $ (787.74)
Licenses & permits 4,500.00 4,500.00 2,512.00 (1,988.00)
Investment revenue 5,000.00 5,000.00 5,411.58 411.58
Total revenues $ 362,061.00 $ 362,061.00 $ 359,696.84 $ (2,364.16)
EXPENDITURES
Current:
Public safety $ 567,861.00 $ 569,576.00 $ 406,087.91 $ 163,488.09
Total current $ 567,861.00 $ 569,576.00 $ 406,087.91 $ 163,488.09
Debt service:
Total debt service $ - $ - $ - $ -
Capital outlay:
Public Safety $ 76,000.00 $ 76,000.00 $ 75,997.08 $ 2.92
Total capital outlay $ 76,000.00 $ 76,000.00 $ 75,997.08 $ 2.92
Total expenditures $ 643,861.00 $ 645,576.00 $ 482,084.99 $ 163,491.01
Excess (deficiency) of revenues over expenditures $ (281,800.00) $ (283,515.00) $ (122,388.15) $ 161,126.85
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) $ - $ - $ - $ -
Net change in fund balances $ (281,800.00) $ (283,515.00) $ (122,388.15) $ 161,126.85
Fund balances - beginning 452,280.79 452,280.79 452,280.79 -
Fund balances - ending $ 170,480.79 $ 168,765.79 $ 329,892.64 $ 161,126.85
Budgeted Amounts
City of Cape Girardeau
Health Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 1,390,000.00 $ 1,390,000.00 $ 1,599,683.87 $ 209,683.87
Investment revenue 6,243.00 6,243.00 13,297.54 7,054.54
Total revenues $ 1,396,243.00 $ 1,396,243.00 $ 1,612,981.41 $ 216,738.41
EXPENDITURES
Current:
Capital Improvements $ - $ 21,500.00 $ 21,210.75 $ 289.25
Total current $ - $ 21,500.00 $ 21,210.75 $ 289.25
Debt service:
Total debt service $ - $ - $ - $ -
Capital outlay:
Public works $ - $ 140,000.00 $ 88,776.36 $ 51,223.64
Capital improvements - 196,534.75 163,678.13 32,856.62
Total capital outlay $ - $ 336,534.75 $ 252,454.49 $ 84,080.26
Total expenditures $ - $ 358,034.75 $ 273,665.24 $ 84,369.51
Excess (deficiency) of revenues over expenditures $ 1,396,243.00 $ 1,038,208.25 $ 1,339,316.17 $ 301,107.92
OTHER FINANCING SOURCES (USES)
Special assessments $ 4,468.00 $ 4,468.00 $ 4,578.06 $ 110.06
Transfers in - 27,500.00 25,637.41 (1,862.59)
Transfers out (1,120,000.00) (1,120,000.00) (1,120,000.00) -
Total other financing source (uses) $ (1,115,532.00) $ (1,088,032.00) $ (1,089,784.53) $ (1,752.53)
Net change in fund balances $ 280,711.00 $ (49,823.75) $ 249,531.64 $ 299,355.39
Fund balances - beginning 828,627.70 828,627.70 828,627.70 -
Fund balances - ending $ 1,109,338.70 $ 778,803.95 $ 1,078,159.34 $ 299,355.39
Budgeted Amounts
City of Cape Girardeau
Motor Fuel Tax Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,505,000.00 $ 2,505,000.00 $ 2,538,305.06 $ 33,305.06
Investment revenue 37,500.00 37,500.00 77,216.84 39,716.84
Total revenues $ 2,542,500.00 $ 2,542,500.00 $ 2,615,521.90 $ 73,021.90
EXPENDITURES
Current:
Development services $ 128,185.00 $ 128,185.00 $ 140,251.31 $ (12,066.31)
Total current $ 128,185.00 $ 128,185.00 $ 140,251.31 $ (12,066.31)
Debt service:
Administrative charges $ 6,000.00 $ 6,000.00 $ 5,296.76 $ 703.24
Principal 44,700.00 44,700.00 44,700.00 -
Interest 12,515.00 12,515.00 12,514.52 0.48
Total debt service $ 63,215.00 $ 63,215.00 $ 62,511.28 $ 703.72
Total expenditures $ 191,400.00 $ 191,400.00 $ 202,762.59 $ (11,362.59)
Excess (deficiency) of revenues over expenditures $ 2,351,100.00 $ 2,351,100.00 $ 2,412,759.31 $ 61,659.31
OTHER FINANCING SOURCES (USES)
Transfers in $ - $ - $ 36.46 $ 36.46
Transfers out (7,383,000.00) (7,383,000.00) (3,140,881.11) 4,242,118.89
Total other financing source (uses) $ (7,383,000.00) $ (7,383,000.00) $ (3,140,844.65) $ 4,242,155.35
Net change in fund balances $ (5,031,900.00) $ (5,031,900.00) $ (728,085.34) $ 4,303,814.66
Fund balances - beginning 5,688,693.72 5,688,693.72 5,688,693.72 -
Fund balances - ending $ 656,793.72 $ 656,793.72 $ 4,960,608.38 $ 4,303,814.66
Budgeted Amounts
City of Cape Girardeau
Cap Imp Sales Tax-Water System
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 49.94 $ 49.94
Total revenues $ - $ - $ 49.94 $ 49.94
EXPENDITURES
Total expenditures $ - $ - $ - $ -
Excess (deficiency) of revenues over expenditures $ - $ - $ 49.94 $ 49.94
OTHER FINANCING SOURCES (USES)
Special assessments $ - $ - $ 0.06 $ 0.06
Transfers out - (27,500.00) (25,637.41) 1,862.59
Total other financing source (uses) $ - $ (27,500.00) $ (25,637.35) $ 1,862.65
Net change in fund balances $ - $ (27,500.00) $ (25,587.41) $ 1,912.59
Fund balances - beginning 25,587.41 25,587.41 25,587.41 -
Fund balances - ending $ 25,587.41 $ (1,912.59) $ - $ 1,912.59
Budgeted Amounts
City of Cape Girardeau
Transportation Sales Tax I
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,505,000.00 $ 2,505,000.00 $ 2,538,309.42 $ 33,309.42
Investment revenue 56,250.00 56,250.00 42,256.62 (13,993.38)
Total revenues $ 2,561,250.00 $ 2,561,250.00 $ 2,580,566.04 $ 19,316.04
EXPENDITURES
Current:
Development services $ 128,185.00 $ 128,185.00 $ 140,251.30 $ (12,066.30)
Total current $ 128,185.00 $ 128,185.00 $ 140,251.30 $ (12,066.30)
Total expenditures $ 128,185.00 $ 128,185.00 $ 140,251.30 $ (12,066.30)
Excess (deficiency) of revenues over expenditures $ 2,433,065.00 $ 2,433,065.00 $ 2,440,314.74 $ 7,249.74
OTHER FINANCING SOURCES (USES)
Transfers out $ (1,627,500.00) $ (1,627,500.00) $ (1,627,500.00) $ -
Total other financing source (uses) $ (1,627,500.00) $ (1,627,500.00) $ (1,627,500.00) $ -
Net change in fund balances $ 805,565.00 $ 805,565.00 $ 812,814.74 $ 7,249.74
Fund balances - beginning 3,102,428.66 3,102,428.66 3,102,428.66 -
Fund balances - ending $ 3,907,993.66 $ 3,907,993.66 $ 3,915,243.40 $ 7,249.74
Budgeted Amounts
City of Cape Girardeau
Cap Imp Sales Tax-Sewer System
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Total revenues $ - $ - $ - $ -
EXPENDITURES
Total expenditures $ - $ - $ - $ -
Excess (deficiency) of revenues over expenditures $ - $ - $ - $ -
OTHER FINANCING SOURCES (USES)
Transfers out $ - $ (1,750.00) $ (1,561.58) $ 188.42
Total other financing source (uses) $ - $ (1,750.00) $ (1,561.58) $ 188.42
Net change in fund balances $ - $ (1,750.00) $ (1,561.58) $ 188.42
Fund balances - beginning 1,561.58 1,561.58 1,561.58 -
Fund balances - ending $ 1,561.58 $ (188.42) $ - $ 188.42
Budgeted Amounts
City of Cape Girardeau
Transportation Sales Tax II
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,033,260.00 $ 2,033,260.00 $ 2,459,550.01 $ 426,290.01
Total revenues $ 2,033,260.00 $ 2,033,260.00 $ 2,459,550.01 $ 426,290.01
EXPENDITURES
Total expenditures $ - $ - $ - $ -
Excess (deficiency) of revenues over expenditures $ 2,033,260.00 $ 2,033,260.00 $ 2,459,550.01 $ 426,290.01
OTHER FINANCING SOURCES (USES)
Transfers out $ (2,033,260.00) $ (2,453,260.00) $ (2,509,834.11) $ (56,574.11)
Total other financing source (uses) $ (2,033,260.00) $ (2,453,260.00) $ (2,509,834.11) $ (56,574.11)
Net change in fund balances $ - $ (420,000.00) $ (50,284.10) $ 369,715.90
Fund balances - beginning 275,546.69 275,546.69 275,546.69 -
Fund balances - ending $ 275,546.69 $ (144,453.31) $ 225,262.59 $ 369,715.90
Budgeted Amounts
City of Cape Girardeau
Fire Sales Tax Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 14,220.09 $ 14,220.09
Total revenues $ - $ - $ 14,220.09 $ 14,220.09
EXPENDITURES
Current:
Public safety $ 19,998.00 $ 19,998.00 $ 12,232.20 $ 7,765.80
Total current $ 19,998.00 $ 19,998.00 $ 12,232.20 $ 7,765.80
Debt service:
Principal $ 1,330,907.00 $ 1,330,907.00 $ 1,330,907.04 $ (0.04)
Interest 59,700.00 59,700.00 59,836.21 (136.21)
Total debt service $ 1,390,607.00 $ 1,390,607.00 $ 1,390,743.25 $ (136.25)
Capital outlay:
Public safety $ 15,000.00 $ 41,706.00 $ 34,847.48 $ 6,858.52
Total capital outlay $ 15,000.00 $ 41,706.00 $ 34,847.48 $ 6,858.52
Total expenditures $ 1,425,605.00 $ 1,452,311.00 $ 1,437,822.93 $ 14,488.07
Excess (deficiency) of revenues over expenditures $ (1,425,605.00) $ (1,452,311.00) $ (1,423,602.84) $ 28,708.16
OTHER FINANCING SOURCES (USES)
Transfers in $ 2,033,260.00 $ 2,453,260.00 $ 1,754,500.77 $ (698,759.23)
Transfers out (1,202,400.00) (1,412,400.00) (877,250.37) 535,149.63
Total other financing source (uses) $ 830,860.00 $ 1,040,860.00 $ 877,250.40 $ (163,609.60)
Net change in fund balances $ (594,745.00) $ (411,451.00) $ (546,352.44) $ (134,901.44)
Fund balances - beginning 594,050.92 594,050.92 594,050.92 -
Fund balances - ending $ (694.08) $ 182,599.92 $ 47,698.48 $ (134,901.44)
Budgeted Amounts
City of Cape Girardeau
Public Safety Trust Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Total revenues $ - $ - $ - $ -
EXPENDITURES
Total expenditures $ - $ - $ - $ -
Excess (deficiency) of revenues over expenditures $ - $ - $ - $ -
OTHER FINANCING SOURCES (USES)
Transfers out $ - $ (26,500.00) $ (26,335.20) $ 164.80
Total other financing source (uses) $ - $ (26,500.00) $ (26,335.20) $ 164.80
Net change in fund balances $ - $ (26,500.00) $ (26,335.20) $ 164.80
Fund balances - beginning 26,335.20 26,335.20 26,335.20 -
Fund balances - ending $ 26,335.20 $ (164.80) $ - $ 164.80
Budgeted Amounts
City of Cape Girardeau
Debt Service Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 53,294.02 $ 53,294.02
Investment revenue 1,000.00 1,000.00 132.26 (867.74)
Total revenues $ 1,000.00 $ 1,000.00 $ 53,426.28 $ 52,426.28
EXPENDITURES
Debt service:
Interest $ - $ - $ 192.87 $ (192.87)
Total debt service $ - $ - $ 192.87 $ (192.87)
Capital outlay:
Capital Improvements $ - $ 16,539.41 $ 8,409.15 $ 8,130.26
Total capital outlay $ - $ 16,539.41 $ 8,409.15 $ 8,130.26
Total expenditures $ - $ 16,539.41 $ 8,602.02 $ 7,937.39
Excess (deficiency) of revenues over expenditures $ 1,000.00 $ (15,539.41) $ 44,824.26 $ 60,363.67
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) $ - $ - $ - $ -
Net change in fund balances $ 1,000.00 $ (15,539.41) $ 44,824.26 $ 60,363.67
Fund balances - beginning (13,604.15) (13,604.15) (13,604.15) -
Fund balances - ending $ (12,604.15) $ (29,143.56) $ 31,220.11 $ 60,363.67
Budgeted Amounts
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, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ 1,794.00 $ 1,794.00 $ 3,362.61 $ 1,568.61
Total revenues $ 1,794.00 $ 1,794.00 $ 3,362.61 $ 1,568.61
EXPENDITURES
Capital outlay:
Capital Improvements $ - $ 533,216.00 $ 473,970.57 $ 59,245.43
Total capital outlay $ - $ 533,216.00 $ 473,970.57 $ 59,245.43
Total expenditures $ - $ 533,216.00 $ 473,970.57 $ 59,245.43
Excess (deficiency) of revenues over expenditures $ 1,794.00 $ (531,422.00) $ (470,607.96) $ 60,814.04
OTHER FINANCING SOURCES (USES)
Special assessments $ 5,319.00 $ 5,319.00 $ 14,413.68 $ 9,094.68
Total other financing source (uses) $ 5,319.00 $ 5,319.00 $ 14,413.68 $ 9,094.68
Net change in fund balances $ 7,113.00 $ (526,103.00) $ (456,194.28) $ 69,908.72
Fund balances - beginning 105,598.44 105,598.44 105,598.44 -
Fund balances - ending $ 112,711.44 $ (420,504.56) $ (350,595.84) $ 69,908.72
Budgeted Amounts
City of Cape Girardeau
Street Capital Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 1,360,000.00 $ 1,360,000.00 $ 794,860.85 $ (565,139.15)
Investment revenue - - 351.64 351.64
Total revenues $ 1,360,000.00 $ 1,360,000.00 $ 795,212.49 $ (564,787.51)
EXPENDITURES
Capital outlay:
Capital Improvements $ 1,360,000.00 $ 1,360,000.00 $ 816,996.71 $ 543,003.29
Total capital outlay $ 1,360,000.00 $ 1,360,000.00 $ 816,996.71 $ 543,003.29
Total expenditures $ 1,360,000.00 $ 1,360,000.00 $ 816,996.71 $ 543,003.29
Excess (deficiency) of revenues over expenditures $ - $ - $ (21,784.22) $ (21,784.22)
OTHER FINANCING SOURCES (USES)
Transfers in $ - $ - $ 17,624.06 $ 17,624.06
Total other financing source (uses) $ - $ - $ 17,624.06 $ 17,624.06
Net change in fund balances $ - $ - $ (4,160.16) $ (4,160.16)
Fund balances - beginning 21,439.22 21,439.22 21,439.22 -
Fund balances - ending $ 21,439.22 $ 21,439.22 $ 17,279.06 $ (4,160.16)
Budgeted Amounts
City of Cape Girardeau
Park Capital Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 1,316,875.98 $ 1,316,875.98
Investment revenue - - 187.07 187.07
Total revenues $ - $ - $ 1,317,063.05 $ 1,317,063.05
EXPENDITURES
Current:
Capital Improvements $ - $ 2,509,884.52 $ 2,948,132.34 $ (438,247.82)
Total current $ - $ 2,509,884.52 $ 2,948,132.34 $ (438,247.82)
Debt service:
Interest $ - $ - $ 1,134.89 $ (1,134.89)
Total debt service $ - $ - $ 1,134.89 $ (1,134.89)
Total expenditures $ - $ 2,509,884.52 $ 2,949,267.23 $ (439,382.71)
Excess (deficiency) of revenues over expenditures $ - $ (2,509,884.52) $ (1,632,204.18) $ 877,680.34
OTHER FINANCING SOURCES (USES)
Transfers in $ - $ 1,090,500.00 $ 1,664,244.79 $ 573,744.79
Total other financing source (uses) $ - $ 1,090,500.00 $ 1,664,244.79 $ 573,744.79
Net change in fund balances $ - $ (1,419,384.52) $ 32,040.61 $ 1,451,425.13
Fund balances - beginning (31,004.90) (31,004.90) (31,004.90) -
Fund balances - ending $ (31,004.90) $ (1,450,389.42) $ 1,035.71 $ 1,451,425.13
Budgeted Amounts
City of Cape Girardeau
Comm Devel Block Grant Project
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 4,809,600.00 $ 4,809,600.00 $ 4,919,235.94 $ 109,635.94
Intergovernmental 30,000.00 30,000.00 30,000.00 -
Investment revenue 6,250.00 6,250.00 87,798.40 81,548.40
Total revenues $ 4,845,850.00 $ 4,845,850.00 $ 5,037,034.34 $ 191,184.34
EXPENDITURES
Current:
Development services $ 242,850.00 $ 252,850.00 $ 277,432.59 $ (24,582.59)
Total current $ 242,850.00 $ 252,850.00 $ 277,432.59 $ (24,582.59)
Debt service:
Total debt service $ - $ - $ - $ -
Capital outlay:
Capital Improvement Projects $ 5,540,000.00 $ 7,896,116.49 $ 3,518,928.12 $ 4,377,188.37
Total capital outlay $ 5,540,000.00 $ 7,896,116.49 $ 3,518,928.12 $ 4,377,188.37
Total expenditures $ 5,782,850.00 $ 8,148,966.49 $ 3,796,360.71 $ 4,352,605.78
Excess (deficiency) of revenues over expenditures $ (937,000.00) $ (3,303,116.49) $ 1,240,673.63 $ 4,543,790.12
OTHER FINANCING SOURCES (USES)
Transfers in $ 260,000.00 $ 260,000.00 $ 260,000.00 $ -
Total other financing source (uses) $ 260,000.00 $ 260,000.00 $ 260,000.00 $ -
Net change in fund balances $ (677,000.00) $ (3,043,116.49) $ 1,500,673.63 $ 4,543,790.12
Fund balances - beginning 5,110,888.50 5,110,888.50 5,110,888.50 -
Fund balances - ending $ 4,433,888.50 $ 2,067,772.01 $ 6,611,562.13 $ 4,543,790.12
Budgeted Amounts
City of Cape Girardeau
Transportation Sales Tax IV
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 1,252,500.00 $ 1,252,500.00 $ 1,269,034.40 $ 16,534.40
Investment revenue 2,500.00 2,500.00 12,448.01 9,948.01
Total revenues $ 1,255,000.00 $ 1,255,000.00 $ 1,281,482.41 $ 26,482.41
EXPENDITURES
Total expenditures $ - $ - $ - $ -
Excess (deficiency) of revenues over expenditures $ 1,255,000.00 $ 1,255,000.00 $ 1,281,482.41 $ 26,482.41
OTHER FINANCING SOURCES (USES)
Transfers out $ (1,282,732.00) $ (1,450,563.00) $ (1,384,563.00) $ 66,000.00
Total other financing source (uses) $ (1,282,732.00) $ (1,450,563.00) $ (1,384,563.00) $ 66,000.00
Net change in fund balances $ (27,732.00) $ (195,563.00) $ (103,080.59) $ 92,482.41
Fund balances - beginning 417,573.20 417,573.20 417,573.20 -
Fund balances - ending $ 389,841.20 $ 222,010.20 $ 314,492.61 $ 92,482.41
Budgeted Amounts
City of Cape Girardeau
Parks/Stormwater Sales Tax
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 3,757,500.00 $ 3,757,500.00 $ 3,807,103.09 $ 49,603.09
Investment revenue 25,000.00 25,000.00 57,118.18 32,118.18
Total revenues $ 3,782,500.00 $ 3,782,500.00 $ 3,864,221.27 $ 81,721.27
EXPENDITURES
Debt service:
Administrative charges $ 3,000.00 $ 3,000.00 $ 2,915.00 $ 85.00
Principal 2,080,000.00 2,080,000.00 2,080,000.00 -
Interest 407,394.00 407,394.00 407,393.76 0.24
Total debt service $ 2,490,394.00 $ 2,490,394.00 $ 2,490,308.76 $ 85.24
Capital outlay:
Parks and recreation $ 62,500.00 $ 62,500.00 $ 46,734.85 $ 15,765.15
Total capital outlay $ 62,500.00 $ 62,500.00 $ 46,734.85 $ 15,765.15
Total expenditures $ 2,552,894.00 $ 2,552,894.00 $ 2,537,043.61 $ 15,850.39
Excess (deficiency) of revenues over expenditures $ 1,229,606.00 $ 1,229,606.00 $ 1,327,177.66 $ 97,571.66
OTHER FINANCING SOURCES (USES)
Transfers in $ 30,000.00 $ 30,000.00 $ 30,000.00 $ -
Transfers out (1,259,606.00) (1,259,606.00) (700,115.91) 559,490.09
Total other financing source (uses) $ (1,229,606.00) $ (1,229,606.00) $ (670,115.91) $ 559,490.09
Net change in fund balances $ - $ - $ 657,061.75 $ 657,061.75
Fund balances - beginning 3,670,230.91 3,670,230.91 3,670,230.91 -
Fund balances - ending $ 3,670,230.91 $ 3,670,230.91 $ 4,327,292.66 $ 657,061.75
Budgeted Amounts
City of Cape Girardeau
Parks/Stormwater Sales Tax-Cap
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 165,000.00 $ 165,000.00 $ 160,995.82 $ (4,004.18)
Investment revenue - - 12.45 12.45
Total revenues $ 165,000.00 $ 165,000.00 $ 161,008.27 $ (3,991.73)
EXPENDITURES
Current:
Development services $ 177,000.00 $ 329,617.98 $ 230,710.77 $ 98,907.21
Total current $ 177,000.00 $ 329,617.98 $ 230,710.77 $ 98,907.21
Debt service:
Interest $ - $ - $ 344.55 $ (344.55)
Total debt service $ - $ - $ 344.55 $ (344.55)
Total expenditures $ 177,000.00 $ 329,617.98 $ 231,055.32 $ 98,562.66
Excess (deficiency) of revenues over expenditures $ (12,000.00) $ (164,617.98) $ (70,047.05) $ 94,570.93
OTHER FINANCING SOURCES (USES)
Transfers in $ 12,000.00 $ 15,000.00 $ 19,745.20 $ 4,745.20
Total other financing source (uses) $ 12,000.00 $ 15,000.00 $ 19,745.20 $ 4,745.20
Net change in fund balances $ - $ (149,617.98) $ (50,301.85) $ 99,316.13
Fund balances - beginning 6,070.44 6,070.44 6,070.44 -
Fund balances - ending $ 6,070.44 $ (143,547.54) $ (44,231.41) $ 99,316.13
Budgeted Amounts
City of Cape Girardeau
Housing Development Grant Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 53,275.71 $ 53,275.71
Investment revenue - - 613.36 613.36
Total revenues $ - $ - $ 53,889.07 $ 53,889.07
EXPENDITURES
Current:
Capital Improvements $ - $ 76,594.20 $ 76,707.67 $ (113.47)
Total current $ - $ 76,594.20 $ 76,707.67 $ (113.47)
Total expenditures $ - $ 76,594.20 $ 76,707.67 $ (113.47)
Excess (deficiency) of revenues over expenditures $ - $ (76,594.20) $ (22,818.60) $ 53,775.60
Net change in fund balances $ - $ (76,594.20) $ (22,818.60) $ 53,775.60
Fund balances - beginning 50,362.55 50,362.55 50,362.55 -
Fund balances - ending $ 50,362.55 $ (26,231.65) $ 27,543.95 $ 53,775.60
Budgeted Amounts
City of Cape Girardeau
STP - Urban Grant Project Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Residential charges $ 4,620,000.00 $ 4,620,000.00 $ 4,397,073.69 $ (222,926.31)
Commerical charges 2,540,000.00 2,540,000.00 2,389,539.45 (150,460.55)
Other fees and charges 128,000.00 128,000.00 127,625.40 (374.60)
Internal charges - - 7,454.16 7,454.16
Miscellaneous 800.00 800.00 1,367.96 567.96
Investment revenue 113,012.00 113,012.00 182,068.64 69,056.64
Asset disposition - - 83,110.42 83,110.42
Total revenues $ 7,401,812.00 $ 7,401,812.00 $ 7,188,239.72 $ (213,572.28)
EXPENDITURES
Current:
Contractual services $ 487,528.00 $ 879,480.95 $ 808,944.32 $ 70,536.63
General operating expenses 450,745.00 459,711.38 423,337.42 36,373.96
Internal service expense 194,947.00 194,947.00 191,366.21 3,580.79
Material and supplies 744,837.00 639,872.53 649,264.09 (9,391.56)
Personnel services 1,830,917.00 1,792,582.00 1,750,599.03 41,982.97
Special projects expense 18,000.00 18,000.00 16,712.04 1,287.96
Total current $ 3,726,974.00 $ 3,984,593.86 $ 3,840,223.11 $ 144,370.75
Debt service:
Administrative charges $ 413,160.00 $ 413,160.00 $ 82,509.96 $ 330,650.04
Principal 2,790,420.00 2,932,170.00 2,344,250.00 587,920.00
Interest 1,808,459.00 1,808,459.00 893,494.82 914,964.18
Total debt service $ 5,012,039.00 $ 5,153,789.00 $ 3,320,254.78 $ 1,833,534.22
Capital outlay:
Capital Improvement Projects $ - $ 3,625,336.05 $ 3,401,010.34 $ 224,325.71
Equipment 57,022.00 408,536.62 561,350.42 (152,813.80)
Other Capital Expenditures 1,470,000.00 - - -
Total capital outlay $ 1,527,022.00 $ 4,033,872.67 $ 3,962,360.76 $ 71,511.91
Total expenditures $ 10,266,035.00 $ 13,172,255.53 $ 11,122,838.65 $ 2,049,416.88
Excess (deficiency) of revenues over expenditures $ (2,864,223.00) $ (5,770,443.53) $ (3,934,598.93) $ 1,835,844.60
OTHER FINANCING SOURCES (USES)
Contributed cap - connect fee $ 80,000.00 $ 80,000.00 $ 81,170.00 $ 1,170.00
Special assessments 3,536.00 3,536.00 10,539.80 7,003.80
Bond proceeds 1,390,000.00 1,390,000.00 12,156,055.49 10,766,055.49
Asset disposition 16,000.00 16,000.00 55,000.00 39,000.00
Transfers in 1,926,980.00 1,931,017.49 2,111,149.58 180,132.09
Transfers out (12,000.00) (15,421.86) (3,421.86) 12,000.00
Total other financing source (uses) $ 3,404,516.00 $ 3,405,131.63 $ 14,410,493.01 $ 11,005,361.38
Net change in fund balances $ 540,293.00 $ (2,365,311.90) $ 10,475,894.08 $ 12,841,205.98
Fund balances - beginning (5,605,414.17) (5,605,414.17) (5,605,414.17) -
Fund balances - ending $ (5,065,121.17) $ (7,970,726.07) $ 4,870,479.91 $ 12,841,205.98
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Sewer Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
Variance with
Original Final Actual Final Budget
REVENUES
Residential charges $ 3,860,000.00 $ 3,860,000.00 $ 3,561,640.33 $ (298,359.67)
Commerical charges 2,540,500.00 2,540,500.00 2,328,983.49 (211,516.51)
Other fees and charges 209,000.00 209,000.00 232,129.88 23,129.88
Miscellaneous 21,217.00 21,217.00 20,412.20 (804.80)
Investment revenue 60,105.00 60,105.00 68,669.48 8,564.48
Total revenues $ 6,690,822.00 $ 6,690,822.00 $ 6,211,835.38 $ (478,986.62)
EXPENDITURES
Current:
Contractual services $ 2,809,487.00 $ 2,830,796.71 $ 2,780,139.54 $ 50,657.17
General operating expenses 362,395.00 362,169.67 319,767.90 42,401.77
Internal service expense 143,028.00 143,028.00 143,086.71 (58.71)
Material and supplies 1,192,292.00 1,171,207.62 1,012,949.39 158,258.23
Personnel services 296,457.00 297,071.00 272,215.11 24,855.89
Special projects expense 250,000.00 250,000.00 242,310.87 7,689.13
Total current $ 5,053,659.00 $ 5,054,273.00 $ 4,770,469.52 $ 283,803.48
Debt service:
Principal $ 545,000.00 $ 545,000.00 $ 545,000.00 $ -
Interest 419,281.00 419,281.00 419,281.26 (0.26)
Total debt service $ 964,281.00 $ 964,281.00 $ 964,281.26 $ (0.26)
Capital outlay:
Capital Improvement Projects $ 350,000.00 $ 3,700,506.69 $ 1,596,623.84 $ 2,103,882.85
Equipment 70,700.00 70,700.00 43,880.00 26,820.00
Other Capital Expenditures 7,583,000.00 4,503,000.00 (500.00) 4,503,500.00
Total capital outlay $ 8,003,700.00 $ 8,274,206.69 $ 1,640,003.84 $ 6,634,202.85
Total expenditures $ 14,021,640.00 $ 14,292,760.69 $ 7,374,754.62 $ 6,918,006.07
Excess (deficiency) of revenues over expenditures $ (7,330,818.00) $ (7,601,938.69) $ (1,162,919.24) $ 6,439,019.45
OTHER FINANCING SOURCES (USES)
Special assessments $ 724.00 $ 724.00 $ 1,744.04 $ 1,020.04
Asset disposition - - 12,480.93 12,480.93
Transfers in 7,425,000.00 6,584,500.00 1,547,987.12 (5,036,512.88)
Transfers out - - (2,000.00) (2,000.00)
Total other financing source (uses) $ 7,425,724.00 $ 6,585,224.00 $ 1,560,212.09 $ (5,025,011.91)
Net change in fund balances $ 94,906.00 $ (1,016,714.69) $ 397,292.85 $ 1,414,007.54
Fund balances - beginning 4,967,750.31 4,967,750.31 4,967,750.31 -
Fund balances - ending $ 5,062,656.31 $ 3,951,035.62 $ 5,365,043.16 $ 1,414,007.54
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Water Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
Variance with
Original Final Actual Final Budget
REVENUES
Residential charges $ 2,425,000.00 $ 2,425,000.00 $ 2,366,522.13 $ (58,477.87)
Commerical charges 37,000.00 37,000.00 38,640.75 1,640.75
Transfer station charges 741,080.00 741,080.00 704,584.65 (36,495.35)
Other fees and charges 93,000.00 93,000.00 97,086.10 4,086.10
Miscellaneous 41,500.00 41,500.00 45,334.68 3,834.68
Investment revenue 10,000.00 10,000.00 9,627.47 (372.53)
Asset disposition - - 4,447.40 4,447.40
Total revenues $ 3,347,580.00 $ 3,347,580.00 $ 3,266,243.18 $ (81,336.82)
EXPENDITURES
Current:
Contractual services $ 1,073,229.00 $ 1,092,946.93 $ 1,056,810.66 $ 36,136.27
General operating expenses 53,200.00 53,074.57 7,795.09 45,279.48
Internal service expense 380,669.00 380,669.00 409,110.00 (28,441.00)
Material and supplies 286,923.00 287,330.50 232,330.99 54,999.51
Personnel services 1,118,997.00 1,121,824.00 1,121,942.26 (118.26)
Special projects expense 56,824.00 56,824.00 39,545.81 17,278.19
Total current $ 2,969,842.00 $ 2,992,669.00 $ 2,867,534.81 $ 125,134.19
Debt service:
Administrative charges $ 500.00 $ 500.00 $ 424.00 $ 76.00
Principal 206,508.00 1,199,843.00 1,199,660.74 182.26
Interest 27,143.00 27,143.00 23,735.23 3,407.77
Total debt service $ 234,151.00 $ 1,227,486.00 $ 1,223,819.97 $ 3,666.03
Capital outlay:
Capital Improvement Projects $ - $ 215,000.00 $ 213,216.50 $ 1,783.50
Equipment 210,601.00 218,298.81 143,198.56 75,100.25
Total capital outlay $ 210,601.00 $ 433,298.81 $ 356,415.06 $ 76,883.75
Total expenditures $ 3,414,594.00 $ 4,653,453.81 $ 4,447,769.84 $ 205,683.97
Excess (deficiency) of revenues over expenditures $ (67,014.00) $ (1,305,873.81) $ (1,181,526.66) $ 124,347.15
OTHER FINANCING SOURCES (USES)
Asset disposition $ 3,000.00 $ 3,000.00 $ 24,000.00 $ 21,000.00
Advances from other funds - 488,335.00 488,335.00 -
Transfers in - 505,000.00 504,817.85 (182.15)
Total other financing source (uses) $ 3,000.00 $ 996,335.00 $ 1,017,152.85 $ 20,817.85
Net change in fund balances $ (64,014.00) $ (309,538.81) $ (164,373.81) $ 145,165.00
Fund balances - beginning 392,394.51 392,394.51 392,394.51 -
Fund balances - ending $ 328,380.51 $ 82,855.70 $ 228,020.70 $ 145,165.00
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Solid Waste Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
Variance with
Original Final Actual Final Budget
REVENUES
Concession revenues $ 38,600.00 $ 38,600.00 $ 32,958.12 $ (5,641.88)
Usage fees 471,600.00 471,600.00 439,974.35 (31,625.65)
Miscellaneous - - 2,363.65 2,363.65
Investment revenue 500.00 500.00 480.25 (19.75)
Total revenues $ 510,700.00 $ 510,700.00 $ 475,776.37 $ (34,923.63)
EXPENDITURES
Current:
Contractual services $ 34,045.00 $ 31,265.00 $ 35,247.38 $ (3,982.38)
General operating expenses 11,290.00 11,290.00 156.05 11,133.95
Internal service expense 47,312.00 47,312.00 38,702.82 8,609.18
Material and supplies 113,438.00 128,488.00 110,488.50 17,999.50
Personnel services 397,257.00 400,002.00 359,036.23 40,965.77
Special projects expense 7,500.00 7,500.00 4,633.93 2,866.07
Total current $ 610,842.00 $ 625,857.00 $ 548,264.91 $ 77,592.09
Debt service:
Principal $ 32,537.00 $ 32,537.00 $ 32,536.53 $ 0.47
Interest 4,730.00 4,730.00 4,730.04 (0.04)
Total debt service $ 37,267.00 $ 37,267.00 $ 37,266.57 $ 0.43
Total expenditures $ 648,109.00 $ 663,124.00 $ 585,531.48 $ 77,592.52
Excess (deficiency) of revenues over expenditures $ (137,409.00) $ (152,424.00) $ (109,755.11) $ 42,668.89
OTHER FINANCING SOURCES (USES)
Asset disposition $ - $ - $ 1,133.13 $ 1,133.13
Transfers in 137,409.00 170,509.00 106,509.00 (64,000.00)
Total other financing source (uses) $ 137,409.00 $ 170,509.00 $ 107,642.13 $ (62,866.87)
Net change in fund balances $ - $ 18,085.00 $ (2,112.98) $ (20,197.98)
Fund balances - beginning 12,076.82 12,076.82 12,076.82 -
Fund balances - ending $ 12,076.82 $ 30,161.82 $ 9,963.84 $ (20,197.98)
Budgeted Amounts
City of Cape Girardeau
Golf Course Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ - $ - $ (2,430.00) $ (2,430.00)
Concession revenues 76,240.00 76,240.00 53,942.47 (22,297.53)
Internal charges - - 4,116.00 4,116.00
Usage fees 340,883.00 340,883.00 321,654.54 (19,228.46)
Miscellaneous 400.00 400.00 282.00 (118.00)
Investment revenue 500.00 500.00 404.14 (95.86)
Asset disposition - - 4,718.45 4,718.45
Total revenues $ 418,023.00 $ 418,023.00 $ 382,687.60 $ (35,335.40)
EXPENDITURES
Current:
Contractual services $ 37,759.00 $ 40,409.00 $ 43,044.93 $ (2,635.93)
General operating expenses 3,816.00 3,662.47 1,005.31 2,657.16
Internal service expense 32,921.00 32,921.00 37,513.78 (4,592.78)
Material and supplies 177,528.00 200,452.74 171,458.37 28,994.37
Personnel services 612,620.00 613,190.00 608,767.21 4,422.79
Special projects expense 78,495.00 80,562.79 79,676.68 886.11
Total current $ 943,139.00 $ 971,198.00 $ 941,466.28 $ 29,731.72
Debt service:
Principal $ 20,257.00 $ 20,257.00 $ 20,256.52 $ 0.48
Interest 4,119.00 4,119.00 4,119.38 (0.38)
Total debt service $ 24,376.00 $ 24,376.00 $ 24,375.90 $ 0.10
Capital outlay:
Equipment $ 15,000.00 $ 25,725.00 $ - $ 25,725.00
Other Capital Expenditures 18,000.00 18,000.00 - 18,000.00
Total capital outlay $ 33,000.00 $ 43,725.00 $ - $ 43,725.00
Total expenditures $ 1,000,515.00 $ 1,039,299.00 $ 965,842.18 $ 73,456.82
Excess (deficiency) of revenues over expenditures $ (582,492.00) $ (621,276.00) $ (583,154.58) $ 38,121.42
OTHER FINANCING SOURCES (USES)
Contributed capital $ 4,000.00 $ 4,000.00 $ - $ (4,000.00)
Transfers in 578,492.00 676,706.00 623,695.00 (53,011.00)
Total other financing source (uses) $ 582,492.00 $ 680,706.00 $ 623,695.00 $ (57,011.00)
Net change in fund balances $ - $ 59,430.00 $ 40,540.42 $ (18,889.58)
Fund balances - beginning 39,733.86 39,733.86 39,733.86 -
Fund balances - ending $ 39,733.86 $ 99,163.86 $ 80,274.28 $ (18,889.58)
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Sporting Complexes Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 644,164.00 $ 644,164.00 $ 644,164.00 $ -
Investment revenue - - 3,026.97 3,026.97
Total revenues $ 644,164.00 $ 644,164.00 $ 647,190.97 $ 3,026.97
EXPENDITURES
Current:
Contractual services $ 239,506.00 $ 261,206.00 $ 255,034.20 $ 6,171.80
General operating expenses 6,950.00 4,250.00 3,220.14 1,029.86
Material and supplies 88,300.00 89,800.00 91,918.61 (2,118.61)
Personnel services 252,572.00 232,072.00 233,093.82 (1,021.82)
Total current $ 587,328.00 $ 587,328.00 $ 583,266.77 $ 4,061.23
Debt service:
Total debt service $ - $ - $ - $ -
Capital outlay:
Equipment $ 115,000.00 $ 115,000.00 $ 92,019.05 $ 22,980.95
Total capital outlay $ 115,000.00 $ 115,000.00 $ 92,019.05 $ 22,980.95
Total expenditures $ 702,328.00 $ 702,328.00 $ 675,285.82 $ 27,042.18
Excess (deficiency) of revenues over expenditures $ (58,164.00) $ (58,164.00) $ (28,094.85) $ 30,069.15
Net change in fund balances $ (58,164.00) $ (58,164.00) $ (28,094.85) $ 30,069.15
Fund balances - beginning 307,836.70 307,836.70 307,836.70 -
Fund balances - ending $ 249,672.70 $ 249,672.70 $ 279,741.85 $ 30,069.15
Budgeted Amounts
City of Cape Girardeau
Information Technology Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 1,313,820.00 $ 1,313,820.00 $ 1,451,680.20 $ 137,860.20
Miscellaneous - - 618.58 618.58
Investment revenue 3,383.00 3,383.00 3,783.96 400.96
Total revenues $ 1,317,203.00 $ 1,317,203.00 $ 1,456,082.74 $ 138,879.74
EXPENDITURES
Current:
Contractual services $ 235,149.00 $ 234,349.66 $ 227,938.01 $ 6,411.65
General operating expenses 4,050.00 5,139.00 4,114.76 1,024.24
Internal service expense 6,439.00 6,439.00 6,439.00 -
Material and supplies 417,494.00 562,204.34 531,572.62 30,631.72
Personnel services 656,195.00 656,175.00 653,850.84 2,324.16
Total current $ 1,319,327.00 $ 1,464,307.00 $ 1,423,915.23 $ 40,391.77
Capital outlay:
Equipment $ - $ 12,727.61 $ 6,227.61 $ 6,500.00
Total capital outlay $ - $ 12,727.61 $ 6,227.61 $ 6,500.00
Total expenditures $ 1,319,327.00 $ 1,477,034.61 $ 1,430,142.84 $ 46,891.77
Excess (deficiency) of revenues over expenditures $ (2,124.00) $ (159,831.61) $ 25,939.90 $ 185,771.51
OTHER FINANCING SOURCES (USES)
Asset disposition $ 15,888.00 $ 15,888.00 $ 21,342.52 $ 5,454.52
Transfers out (15,888.00) (20,660.39) (20,660.18) 0.21
Total other financing source (uses) $ - $ (4,772.39) $ 682.34 $ 5,454.73
Net change in fund balances $ (2,124.00) $ (164,604.00) $ 26,622.24 $ 191,226.24
Fund balances - beginning 132,617.85 132,617.85 132,617.85 -
Fund balances - ending $ 130,493.85 $ (31,986.15) $ 159,240.09 $ 191,226.24
Budgeted Amounts
City of Cape Girardeau
Fleet Management Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ - $ - $ 17,871.49 $ 17,871.49
Internal charges 3,841,865.00 3,841,865.00 3,775,868.86 (65,996.14)
Miscellaneous - - 486.95 486.95
Investment revenue 31,250.00 31,250.00 48,331.95 17,081.95
Total revenues $ 3,873,115.00 $ 3,873,115.00 $ 3,842,559.25 $ (30,555.75)
EXPENDITURES
Current:
Contractual services $ 3,875,365.00 $ 3,873,865.00 $ 3,202,516.21 $ 671,348.79
General operating expenses - 1,500.00 800.98 699.02
Special projects expense - - 37,800.00 (37,800.00)
Total current $ 3,875,365.00 $ 3,875,365.00 $ 3,241,117.19 $ 634,247.81
Total expenditures $ 3,875,365.00 $ 3,875,365.00 $ 3,241,117.19 $ 634,247.81
Excess (deficiency) of revenues over expenditures $ (2,250.00) $ (2,250.00) $ 601,442.06 $ 603,692.06
OTHER FINANCING SOURCES (USES)
Transfers out $ (21,032.00) $ (21,032.00) $ - $ 21,032.00
Total other financing source (uses) $ (21,032.00) $ (21,032.00) $ - $ 21,032.00
SPECIAL ITEMS
Special payment to employee retirement plan $ - $ 1,650,000.00 $ 1,650,000.00 $ -
Total special items $ - $ 1,650,000.00 $ 1,650,000.00 $ -
Net change in fund balances $ (23,282.00) $ (1,673,282.00) $ (1,048,557.94) $ 624,724.06
Fund balances - beginning 3,331,974.80 3,331,974.80 3,331,974.80 -
Fund balances - ending $ 3,308,692.80 $ 1,658,692.80 $ 2,283,416.86 $ 624,724.06
Budgeted Amounts
City of Cape Girardeau
Employee Benefits Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 506,539.00 $ 506,539.00 $ 515,261.40 $ 8,722.40
Investment revenue 21,500.00 21,500.00 22,779.37 1,279.37
Total revenues $ 528,039.00 $ 528,039.00 $ 538,040.77 $ 10,001.77
EXPENDITURES
Current:
Contractual services $ 488,239.00 $ 486,439.00 $ 320,275.96 $ 166,163.04
Material and supplies 39,800.00 41,600.00 54,948.26 (13,348.26)
Total current $ 528,039.00 $ 528,039.00 $ 375,224.22 $ 152,814.78
Total expenditures $ 528,039.00 $ 528,039.00 $ 375,224.22 $ 152,814.78
Excess (deficiency) of revenues over expenditures $ - $ - $ 162,816.55 $ 162,816.55
SPECIAL ITEMS
Special payment to employee retirement plan $ - $ 370,895.00 $ 369,895.00 $ (1,000.00)
Total special items $ - $ 370,895.00 $ 369,895.00 $ (1,000.00)
Net change in fund balances $ - $ (370,895.00) $ (207,078.45) $ 162,816.55
Fund balances - beginning 1,781,569.99 1,781,569.99 1,781,569.99 -
Fund balances - ending $ 1,781,569.99 $ 1,410,674.99 $ 1,574,491.54 $ 162,816.55
Budgeted Amounts
City of Cape Girardeau
Worker's Compensation Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 357,420.00 $ 357,420.00 $ 319,528.22 $ (37,891.78)
Investment revenue 14,375.00 14,375.00 16,601.29 2,226.29
Asset disposition - - 71,817.14 71,817.14
Total revenues $ 371,795.00 $ 371,795.00 $ 407,946.65 $ 36,151.65
EXPENDITURES
Current:
Material and supplies $ - $ - $ 11.62 $ (11.62)
Total current $ - $ - $ 11.62 $ (11.62)
Capital outlay:
Equipment $ 249,834.00 $ 249,834.00 $ 235,551.88 $ 14,282.12
Total capital outlay $ 249,834.00 $ 249,834.00 $ 235,551.88 $ 14,282.12
Total expenditures $ 249,834.00 $ 249,834.00 $ 235,563.50 $ 14,270.50
Excess (deficiency) of revenues over expenditures $ 121,961.00 $ 121,961.00 $ 172,383.15 $ 50,422.15
OTHER FINANCING SOURCES (USES)
Asset disposition $ 5,500.00 $ 5,500.00 $ - $ (5,500.00)
Total other financing source (uses) $ 5,500.00 $ 5,500.00 $ - $ (5,500.00)
Net change in fund balances $ 127,461.00 $ 127,461.00 $ 172,383.15 $ 44,922.15
Fund balances - beginning 1,220,261.01 1,220,261.01 1,220,261.01 -
Fund balances - ending $ 1,347,722.01 $ 1,347,722.01 $ 1,392,644.16 $ 44,922.15
Budgeted Amounts
City of Cape Girardeau
General Equipment Replacement
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 168,000.00 $ 168,000.00 $ 188,356.00 $ 20,356.00
Investment revenue - - 1,993.76 1,993.76
Total revenues $ 168,000.00 $ 168,000.00 $ 190,349.76 $ 22,349.76
EXPENDITURES
Current:
Capital Improvements $ 100,800.00 $ 100,800.00 $ 100,800.00 $ -
Total current $ 100,800.00 $ 100,800.00 $ 100,800.00 $ -
Capital outlay:
Capital Improvements $ 150,000.00 $ 150,000.00 $ - $ 150,000.00
Total capital outlay $ 150,000.00 $ 150,000.00 $ - $ 150,000.00
Total expenditures $ 250,800.00 $ 250,800.00 $ 100,800.00 $ 150,000.00
Excess (deficiency) of revenues over expenditures $ (82,800.00) $ (82,800.00) $ 89,549.76 $ 172,349.76
OTHER FINANCING SOURCES (USES)
Transfers in $ 168,000.00 $ 168,000.00 $ 171,002.93 $ 3,002.93
Total other financing source (uses) $ 168,000.00 $ 168,000.00 $ 171,002.93 $ 3,002.93
Net change in fund balances $ 85,200.00 $ 85,200.00 $ 260,552.69 $ 175,352.69
Fund balances - beginning 104,615.57 104,615.57 104,615.57 -
Fund balances - ending $ 189,815.57 $ 189,815.57 $ 365,168.26 $ 175,352.69
Budgeted Amounts
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, 2015
See Independent Auditors' Report.
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 131.88 $ 131.88
Total revenues $ - $ - $ 131.88 $ 131.88
EXPENDITURES
Current:
Public safety $ - $ 39,665.00 $ 39,480.47 $ 184.53
Total current $ - $ 39,665.00 $ 39,480.47 $ 184.53
Debt service:
Interest $ - $ - $ 13.65 $ (13.65)
Total debt service $ - $ - $ 13.65 $ (13.65)
Capital outlay:
Public safety $ - $ 258,472.00 $ 258,320.29 $ 151.71
Total capital outlay $ - $ 258,472.00 $ 258,320.29 $ 151.71
Total expenditures $ - $ 298,137.00 $ 297,814.41 $ 322.59
Excess (deficiency) of revenues over expenditures $ - $ (298,137.00) $ (297,682.53) $ 454.47
OTHER FINANCING SOURCES (USES)
Transfers in $ - $ - $ 755,333.34 $ 755,333.34
Transfers out - - (377,666.67) (377,666.67)
Total other financing source (uses) $ - $ - $ 377,666.67 $ 377,666.67
Net change in fund balances $ - $ (298,137.00) $ 79,984.14 $ 378,121.14
Fund balances - beginning - - - -
Fund balances - ending $ - $ (298,137.00) $ 79,984.14 $ 378,121.14
Budgeted Amounts
City of Cape Girardeau
Public Safety Trust Fund II
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2015
See Independent Auditors' Report.
2015
Fiscal Year Ended June 30, 2015
Total Pension Liability
Service Costs 768,458$
Interest on the Pension Liability 2,240,283
Changes of Benefit Terms -
Differences Between Expected and Actual Experience
of the Total Pension Liability (261,952)
Changes of Assumptions -
Benefit Payments, Including Refunds of Employee Contributions (1,266,841)
Net Change in Total Pension Liability 1,479,948
Total Pension Liability - Beginning 31,145,281
Total Pension Liability - Ending (A)32,625,229$
Plan Fiduciary Net Position
Contributions - Employer 1,953,089$
Contributions - Employees -
Net Investment Income 684,825
Benefit Payments, Including Refunds of Employee Contributions (1,266,841)
Pension Plan Administrative Expense (40,731)
Other (Net Transfers)267,961
Net Change in Plan Fiduciary Net Position 1,598,303
Plan Fiduciary Net Position - Beginning 35,266,707
Plan Fiduciary Net Position - Ending (B)36,865,010$
Net Pension Liability - Ending (A) - (B)(4,239,781)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 113.00%
Covered Valuation Payroll 8,987,241$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -47.18%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, information is presented for those years for which information is available.
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
SUPPLEMENTARY INFORMATION
CITY OF CAPE GIRARDEAU, MISSOURI
June 30, 2015
GENERAL DIVISION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
See Accompanying Notes to the Basic Financial Statements.
121
2015
Fiscal Year Ended June 30, 2015
Total Pension Liability
Service Costs 303,651$
Interest on the Pension Liability 1,182,926
Changes of Benefit Terms -
Differences Between Expected and Actual Experience
of the Total Pension Liability 274,477
Changes of Assumptions -
Benefit Payments, Including Refunds of Employee Contributions (895,666)
Net Change in Total Pension Liability 865,388
Total Pension Liability - Beginning 16,607,053
Total Pension Liability - Ending (A)17,472,441$
Plan Fiduciary Net Position
Contributions - Employer 1,043,262$
Contributions - Employees -
Net Investment Income 349,748
Benefit Payments, Including Refunds of Employee Contributions (895,666)
Pension Plan Administrative Expense (12,862)
Other (Net Transfers)(106,927)
Net Change in Plan Fiduciary Net Position 377,555
Plan Fiduciary Net Position - Beginning 18,596,174
Plan Fiduciary Net Position - Ending (B)18,973,729$
Net Pension Liability - Ending (A) - (B)(1,501,288)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 108.59%
Covered Valuation Payroll 3,223,790$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -46.57%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, information is presented for those years for which information is available.
SUPPLEMENTARY INFORMATION
CITY OF CAPE GIRARDEAU, MISSOURI
POLICE DIVISION
June 30, 2015
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
See Accompanying Note to the Basic Financial Statements.
122
2015
Fiscal Year Ended June 30, 2015
Total Pension Liability
Service Costs 370,414$
Interest on the Pension Liability 1,319,931
Changes of Benefit Terms -
Differences Between Expected and Actual Experience
of the Total Pension Liability (356,529)
Changes of Assumptions -
Benefit Payments, Including Refunds of Employee Contributions (1,059,610)
Net Change in Total Pension Liability 274,206
Total Pension Liability - Beginning 18,544,510
Total Pension Liability - Ending (A)18,818,716$
Plan Fiduciary Net Position
Contributions - Employer 765,345$
Contributions - Employees -
Net Investment Income 415,318
Benefit Payments, Including Refunds of Employee Contributions (1,059,610)
Pension Plan Administrative Expense (10,625)
Other (Net Transfers)(25,522)
Net Change in Plan Fiduciary Net Position 84,906
Plan Fiduciary Net Position - Beginning 21,332,267
Plan Fiduciary Net Position - Ending (B)21,417,173$
Net Pension Liability - Ending (A) - (B)(2,598,457)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 113.81%
Covered Valuation Payroll 3,017,659$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -86.11%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, information is presented for those years for which information is available.
SUPPLEMENTARY INFORMATION
CITY OF CAPE GIRARDEAU, MISSOURI
FIRE DIVISION
June 30, 2015
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
See Accompanying Note to the Basic Financial Statements.
123
June 30, 2015
Fiscal Actual Contribution
Year Actuarial Contribution Covered as a Percentage
Ended Determined Actual Deficiency Valuation of Covered
June 30,Contribution Contribution (Excess)Payroll Valuation Payroll
2015 1,777,019$ 1,741,546$ 35,473$ 15,253,527$ 11.42%
2014 1,743,286 1,662,520 80,766 14,797,136 11.24%
2013 1,723,280 1,474,487 248,793 14,340,850 10.28%
2012 1,628,048 1,342,323 285,725 14,434,347 9.30%
2011 1,606,736 1,155,207 451,529 13,942,807 8.29%
2010 1,035,135 1,035,137 (2) 14,194,829 7.29%
2009 1,006,174 1,006,043 131 13,853,405 7.26%
2008 1,190,069 1,140,558 49,511 13,554,220 8.41%
2007 1,086,823 1,064,869 21,954 13,230,952 8.05%
2006 961,342 961,343 (1) 12,723,536 7.56%
Notes to Schedule:
Valuation Date:February 28, 2015
Notes The roll-forward of total pension liability from February 28, 2015 to
June 30, 2015 reflects expected service cost and interest reduced by
actual benefit payments and administrative expenses.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method:Entry Age Normal
Amortization Method:Level Percentage of Payroll, Closed
Remaining Amortization Period:Multiple bases from 14 to 20 years
Asset Valuation Method:5-year smoothed market, 20% corridor
Inflation:3.5% wage inflation, 3.0% price inflation
Salary Increases:3.5% to 6.8%, including wage inflation
Investment Rate of Return:7.25%, net of investment and administrative expenses
Retirement Age:Experience-based table of rates that are specific to the type of
eligibility condition.
Mortality:105% of the 1994 Group Annuity Mortality Table set back 0 years
for men and 0 years for women. Based upon experience observed
during the most recent 5-year period of study, it appears that the
current table provides for an approximate 13% margin for future
mortality improvement.
Other Information:None
CITY OF CAPE GIRARDEAU, MISSOURI
SUPPLEMENTARY INFORMATION
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
SCHEDULE OF EMPLOYER CONTRIBUTIONS
See Accompanying Notes to the Basic Financial Statements.
124
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
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 programs for the year ended June 30, 2015. The City of Cape Girardeau, Missouri’s
major federal programs are identified in the summary of auditors’ results section of the
accompanying Schedule of Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts,
and grants applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the City of Cape Girardeau,
Missouri’s major federal programs 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 Standards, issued by the Comptroller General of the United
States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. Those standards and OMB Circular A-133 require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about 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 each
major federal program. However, our audit does not provide a legal determination of the City of
Cape Girardeau, Missouri’s compliance.
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Opinion on Each 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 each of its major federal programs for the year ended June 30, 2015.
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 each major federal program
to determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each 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
February 11, 2016
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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, 2015, 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 February 11, 2016.
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.
Our consideration of internal control was for the limited purpose described in the preceeding
paragraph and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. However, as described in the accompanying
Schedule of Findings and Questioned Costs, we identified a certain deficiency in internal that we
consider to be a material weakness.
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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 a 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. We consider the deficiency described in the
accompanying Schedule of Findings and Questioned Costs as item 2015-001 to be a material
weakness. 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.
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.
City of Cape Girardeau, Missouri’s Response to Findings
The City of Cape Girardeau, Missouri’s response to the finding identified in our audit is
described in the accompanying Schedule of Findings and Questioned Costs. The City of Cape
Girardeau, Missouri’s response was not subjected to the auditing procedures applied in the audit
of the financial statements and, accordingly, we express no opinion on it.
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 City’s internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
February 11, 2016
Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number
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
Grants in Hawaii (1)14.228 2013-ED-03 632,226$
2012-ED-05 500,000 1,132,226$
Passed Through Missouri Housing
Development Commission -
Emergency Solutions Grant Program 14.231 15-711-E 39,255$
14-755-E 77,134
13-755-S 52,052 168,441
TOTAL U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT 1,300,667$
U.S. DEPARTMENT OF JUSTICE:
Bulletproof Vest Partnership Program 16.607 N/A 5,022$
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 9,251
TOTAL U.S. DEPARTMENT OF JUSTICE 14,273$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2015
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
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Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number
U.S. DEPARTMENT OF TRANSPORTATION:
Passed Through Missouri Department of
Transportation -
Airport Improvement Program 20.106 12-077A-1 61,218$
13-077A-1 16,153
14-077A-1 100,631 178,002$
Highway Planning and Construction (1)20.205 STP-1500(022)23,835$
DP-1500(020)469,633
STP-1500(021)1,658
SRTS-INF-H280(106)42,763
SRTS-INF-H31H(103)1,392
TEAP-1501(007)8,000
Passed Through Illinois Department of
Transportation -
Highway Planning and Construction (1)SPR-PL-3000(48)43,875 591,156
State and Community Highway Safety 20.600 15-PT-02-099 2,780$
14-PT-02-021 3,261
15-SA-09-001 43,650
14-SA-09-001 18,652
15-CP-09-001 45,894
14-CP-09-001 90,145 204,382$
Alcohol Open Container Requirements 20.607 14-154-AL-021 1,023$
14-154-AL-019 775
15-154-AL-072 3,466
15-154-AL-075 3,179
14-154-AL-020 1,457 9,900
Child Safety and Child Booster Seats
Incentive Grants 20.613 14-K3-05-001 926
National Priority Safety Programs 20.616 15-M5HVE-03-076 738
15-M2HVE-05-020 1,990
15-M2HVE-05-027 319 3,047
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 987,413$
ENVIRONMENTAL PROTECTION AGENCY:
Passed Through Missouri Department of Natural
Resources -
Capitalization Grants for Clean Water State
Revolving Funds (1)66.458 C295531-03 11,649,538$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2015
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
130
Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number
DELTA REGIONAL AUTHORITY:
Delta Regional Development 90.200 N/A 194,000$
U.S. DEPARTMENT OF HEALTH AND
HUMAN SERVICES :
Passed Through the Cape Girardeau
Community Caring Council
Substance Abuse and Mental Health Services-
Projects of Regional and National Significance 93.243 SDA42070104 1,639$
U.S. DEPARTMENT OF HOMELAND SECURITY:
Assistance to Firefighters Grant 97.044 EMW-2012-FO-06441 6,117
Passed Through Missouri State Emergency
Management Agency - Citizen Community
Resilience Innovation Challenge 97.053 EMW-2011-SS-00003 576
Law Enforcement Officer Reimbursement
Agreement Program 97.090 HSTS0208HSLR050 29,643
TOTAL U.S. DEPARTMENT OF HOMELAND
SECURITY 36,336$
TOTAL FEDERAL AWARDS 14,283,866$
(1) Identified major program.
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2015
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
131
132
City of Cape Girardeau, Missouri
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2015
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-133. This circular requires a Schedule of Expenditures of
Federal Awards showing total expenditures for each federal financial assistance program
as identified in the Catalog of Federal Domestic Assistance (CFDA) and identification of
programs that have not been assigned a CFDA number as “Other Federal Assistance”.
The schedule includes all expenditures of federal awards administered by the City.
B. Basis of Presentation:
The Schedule is presented in accordance with OMB Circular A-133, which defines
federal financial assistance “…assistance that non-federal entities receive or administer in
the form of grants, loans, loan guarantees, property (including donated surplus property),
cooperative agreements, interest subsidies, insurance, food commodities, direct
appropriations, and other assistance, but does not include amounts received as
reimbursement for services rendered to individuals.”
C. Basis of Accounting:
The Schedule is presented on the modified accrual basis of accounting, which recognizes
expenditures when liabilities for goods and services are incurred. This is the same basis
of accounting presented in the financial statements.
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City of Cape Girardeau, Missouri
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2015
1. SUMMARY OF AUDITORS’ RESULTS:
Financial Statements
Type of Auditors’ report issued: Unmodified
Internal control over financial reporting:
• Material weaknesses identified? X yes _____ no
• Significant deficiencies identified that are not
considered to be material weaknesses? _____ yes X none reported
Noncompliance material to financial statements
noted? _____ yes X no
Federal Awards
Internal control over major programs:
• Material weaknesses identified? _____ yes X no
• Significant deficiencies identified that are not
considered to be material weaknesses? yes X none reported
Type of Auditors’ report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with Section 510(a) of Circular
A-133? yes X no
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Identification of major programs.
CFDA Number Name of Federal Program
66.458 Capitalization Grants for Clean Water
State Revolving Funds
Dollar threshold used to distinguish
between type A and type B programs: $428,516
Auditee qualified as low-risk auditee: X yes no
2. FINANCIAL STATEMENT FINDINGS:
2015-001 Significant audit adjustments were required:
Criteria: Statement on Auditing Standards (SAS) No. 115
indicates that the “restatement of previously issued
financial statements to reflect the correction of a
material misstatement” should be regarded as a
material weakness in internal controls.
Condition: Prior period adjustments were recorded, which
restated beginning net assets by a material amount,
the most significant of which was the addition of
the downtown floodwall to capital assets with a
value of $11,122,485.
Context: The total capital assets reported in the
governmental activities was $170,953,666 at June
30, 2015.
Effect: Total assets and total equity of previously
presented financial statements were understated.
Cause: In 2008 the City assumed the operations and assets
of the Main Street Levee and Improvement District
and the North Main Street Levee and Improvement
District to allow the City to access Federal funding
for renovation costs of the floodwall and pumping
systems estimated at $9,000,000. The City
subsequently entered into a Project Partnership
Agreement with the Army Corp of Engineers to
make the needed improvements to the wall and
pumping systems. Although the pumping systems
were included in the City’s infrastructure assets at
the time, the floodwall was inadvertently omitted.
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Recommendation: Management should take steps to ensure all capital
assets are appropriately capitalized in the financial
statements.
Views of Responsible
Officials and Planned
Corrective Actions: The original value that was inadvertently not
included in the City’s infrastructure in 2008 was
$2,320,000. Improvements to the floodwall and
pumping systems made and paid by the Army Corp
of Engineers since 2008 make up the remainder of
the costs inadvertently not included in the City’s
infrastructure assets. During the current year, the
City paid for certain costs required for the future
completion of the renovation project that was their
responsibility per the Project Partnership
Agreement with the Army Corp of Engineers.
These expenditures were the first significant
expenditures that the City was required to make as
part of the renovation project and called attention
to the significant amount of improvements that had
already been made and paid for by Army Corp of
Engineers in previous years under the Project
Partnership Agreement. At that time, the book
value of the original floodwall costs and book
value of the previous years’ improvements were
included in the City’s infrastructure assets.
When the City implemented GASB 34, it hired an
outside firm to do an exhaustive review of its
records to look for assets that should be included in
the City’s infrastructure. Since that time, we have
consistently reviewed Council actions for
accepting donated assets. In this instance, these
renovations were made subject to an agreement
entered into with the Army Corp of Engineers and
approved by the Council before the renovations
were made. Since implementing GASB 34, this is
the only instance in which we have entered into an
agreement with another entity to make and pay for
improvements to the City’s infrastructure. We feel
confident that all assets are now accurately
included in the City’s infrastructure
The City should have monitored performance
under this contract and included the appropriate
amounts in its infrastructure. In the future, we will
review all records from Council meetings for
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contracts similar to the Project Partnership
Agreement and monitor the performance of these
agreements. We will review all records from
Council meetings for actions were assets are
accepted from other entities and make sure that the
assets are appropriately included in the City’s
financial records.
3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS:
No findings or questioned costs were noted that are required to be reported.
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City of Cape Girardeau, Missouri
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 30, 2015
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
1. 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.