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CITY OF CAPE GIRARDEAU, MISSOURI
Cape Girardeau, Missouri
For the Year Ended June 30, 2016
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 4-22
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 23-24
STATEMENT OF ACTIVITIES 25
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
BALANCE SHEET 26-27
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION 28
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES 29
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES 30
PROPRIETARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 31-32
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
FUND NET POSITION 33
STATEMENT OF CASH FLOWS 34-35
FIDUCIARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 36
NOTES TO BASIC FINANCIAL STATEMENTS 37-86
REQUIRED SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL 87
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – AIRPORT 88
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK & RECREATION 89
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CASINO REVENUE 90
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX TRUST
FUND IV 91
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL CAPITAL IMPROVEMENTS 92
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK STORM WATER SALES TAX – CAPITAL 93
NOTES TO BUDGETARY COMPARISON SCHEDULES 94-97
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – GENERAL DIVISION 98
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – POLICE DIVISION 99
SCHEDULE OF CHANGES IN THE NET PENSION LIABILILTY
AND RELATED RATIOS – FIRE DIVISION 100
SCHEDULE OF EMPLOYER CONTRIBUTIONS 101
SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX –
WATER SYSTEM IMPROVEMENTS 102
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CONVENTION AND TOURISM 103
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – DOWNTOWN BUSINESS DISTRICT 104
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HEALTH 105
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – MOTOR FUEL TAX 106
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX
TRUST FUND 107
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX –
SEWER SYSTEM IMPROVEMENTS 108
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST FUND II 109
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FIRE SALES TAX 110
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST 111
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – STREET CAPITAL IMPROVEMENTS 112
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK CAPITAL IMPROVEMENTS 113
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – COMMUNITY DEVELOPMENT BLOCK
GRANT PROJECTS 114
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGE IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX TRUST
FUND III 115
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK STORM WATER SALES TAX 116
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HOUSING DEVELOPMENT GRANTS 117
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – STP-URBAN GRANT PROJECT 118
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SEWER 119
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WATER 120
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SOLID WASTE 121
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GOLF COURSE 122
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SPORTING COMPLEXES 123
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – INFORMATION TECHNOLOGY 124
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FLEET MANAGEMENT 125
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – EMPLOYEE BENEFITS 126
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WORKER’S COMPENSATION 127
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL EQUIPMENT REPLACEMENT 128
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND
ACTUAL – RIVERFRONT REGION ECONOMIC
DEVELOPMENT 129
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX V FUND 130
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE 131-132
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 133-134
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 135-137
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 138
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 139-140
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 141
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, 2016, 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, 2016, 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, budgetary comparison information, and pension liability
schedules on pages 4 through 22 and 87 through 101 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 o f expenditures of
federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code
of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards, 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 13, 2017, 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 13, 2017
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, 2016. 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
$325,682,139.93 (net position). Of this
amount, $66,584,623.15 (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’s governmental funds reported combined
ending fund balances of $69,715,065.70.
Approximately 4.1% of this total amount,
$2,878,130.66 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 $2,878,130.66 or 10.1% of total general
fund expenditures and transfers.
At the end of the current fiscal year, general
fund balance reserved for emergencies was
$4,517,290.00 or 15.9% of total general fund
expenditures and transfers.
o The City’s fixed assets increased
$12,253,578.60 during the year. Net fixed
asset additions of $26,541,297.62 were made
during the year. Depreciation for the current
fiscal year reduced fixed assets by
$14,287,719.02.
The City’s total long-term debt increased by
$28,175,074.56 (27.7%) during the current
fiscal year as a result of $44,401,415.76 in
new debt, $9,021,341.20 in amortization and
regularly scheduled principal payments and
$7,205,000.00 of unscheduled principal
payments.
During the year the City received
disbursements totaling $4,891,313.56 and
$700,000.00 from loans through the state
revolving loan program and the Missouri
Transportation Finance Corporation. These
were used to fund costs of construction at the
new wastewater treatment plant and
continuation of the City’s Inflow &
Infiltration reduction program and were or
will be used to fund initial design and
construction costs of a new bridge.
During the year the City also received bond
proceeds totaling $38,810,102.20 from the
issuance of two special obligation bonds.
These were used to refund $1,040,000 of
2005 special obligation bonds and $6,165,000
of 2009 leasehold revenue bonds and were or
will be used to fund the design and
construction costs of a transfer station and an
indoor sports complex; replacement of police
headquarters, fire station number four and
various fire apparatus; and upgrades to fire
stations numbers one and two.
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.
CITY OF CAPE GIRARDEAU, MISSOURI
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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).
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
23 to 25 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
statements, 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 34
individual governmental funds. Information is
presented separately in the governmental fund
balance sheet and in the governmental fund
statement of revenues, expenditures, and changes
in fund balances for the general, airport, parks
and recreation, transportation trust IV, casino
revenue, parks/storm water sales tax – capital,
and general capital improvement 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.
Basic governmental fund financial statements
can be found on pages 26 to 30 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.
CITY OF CAPE GIRARDEAU, MISSOURI
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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.
The basic proprietary fund financial statements
can be found on pages 31 to 35 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 37 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 $325,682,139.93, an increase of
$11,529,825.49 (3.7%). The City’s net
investment in capital assets (land, buildings,
machinery, and equipment less related
outstanding debt used to acquire those assets) of
$250,508,251.95 makes up 76.9% of the City’s
net position.
This net investment increased $11,395,743.29
(4.8%) during the current fiscal year. The City
uses these capital assets to provide services to
its citizens; consequently, these assets are not
available for future spending.
Although the City’s investment in its capital
assets is reported net of related debt, it should be
noted that the resources needed to repay this debt
must be provided from other sources, since the
capital assets themselves cannot be used to
liquidate these liabilities.
An additional portion of the City’s net assets (2.6
percent) represent resources that are subject to
external restrictions on how they may be used.
The portion of the City’s net assets subject to
external restrictions was $347,996.81 (4.2%)
more than the previous year. The remaining
balance of net assets ($66,584,623.15) is
unrestricted and may be used to meet the City’s
ongoing obligations to citizens and creditors.
This reflects a $213,914.61 (0.3%) decrease from
the previous year.
At the end of the current fiscal year, the City is
able to report positive balances in all three
categories of net assets, both for the government
as a whole, as well as for its separate
governmental and business-type activities. The
same situation was true of the prior year.
City of Cape Girardeau's Net Position
Governmental Business-type
Activity Activities Total
2016 2015 2016 2015 2016 2015
Current and other assets 80,521,092.69 57,778,805.60 21,948,685.44 23,929,757.64 102,469,778,13 81,708,563.24
Capital assets 185,455,057.04 182,283,980.73 171,783,202.33 162,700,700.04 357,238,259.37 344,984,680.77
Total assets 265,976,149.73 240,062,786.33 193,731,887.77 186,630,457.68 459,708,037.50 426,693,244.01
Deferred outflows 7,765,340.69 2,566,023.73 1,108,152.31 354,020.27 8,873,493.00 2,920,044.00
Long-term liabilities 39,647,602.15 15,508,515.52 83,890,321.25 81,907,076.53 123,537,923.40 97,415,592.05
Current liabilities 9,977,675.70 6,160,909.27 9,383,791.47 11,884,472.25 19,361,467.17 18,045,381.52
Total liabilities 49,625,277.85 21,669,424.79 93,274,112.72 93,791,548.78 142,899,390.57 115,460,973.57
Net position:
Invested in capital assets,
Net of related debt 168,824,795.36 163,824,387.91 81,683,456.59 75,288,120.75 250,508,251.95 239,112,508.66
Restricted 5,366,014.83 5,074,186.02 3,223,250.00 3,167,082.00 8,589,264.83 8,241,268.02
Unrestricted 49,925,402.38 52,060,811.34 16,659,220.77 14,737,726.42 66,584,623.15 66,798,537.76
Total net position 224,116,212.57 220,959,385.27 101,565,927.36 93,192,929.17 325,682,139.93 314,152,314.44
CITY OF CAPE GIRARDEAU, MISSOURI
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Governmental Activities. Governmental activities increased the City of Cape Girardeau’s net position by
$3,537,550.74 (compared to $8,804,214.65 in the previous fiscal year) thereby accounting for 31.1 percent of the
total growth in the net position of the City. Governmental activities accounted for 70.7% of its $5,000,407.45
increase in investments in capital assets net of capital debt.
City of Cape Girardeau's Change in Net Assets
Governmental Business-type
activities activities Total
2016 2015 2016 2015 2016 2015
Revenues:
Program revenue:
Charges for service 5,295,550.42 4,860,707.25 18,166,682.91 17,538,252.57 23,462,233.33 22,398,959.82
Operating grants and
contributions 1,035,245.02
1,553,178.28 99,853.48 1,020.00 1,135,098.50
1,554,198.28
Capital grants and
contributions 1,652,404.61 2,089,054.24
2,807,128.01 1.566,030.12 4,459,532.62 3,655,084.36
General revenues:
Property taxes 2,297,081.57 2,228,303.05 - - 2,297,081.57 2,228,303.05
Sales taxes 28,378,951.82 27,690,472.08 - - 28,378,951.82 27,690,472.08
Other taxes 13,491,461.78 13,578,026.97 - - 13,491,461.78 13,578,026.97
Other 1,046,633.50 759,386.03 301,724.32 335,904.03 1,348,357.82 1,095,290.06
Total revenues 53,197,328.72 52,759,127.90
21,375,388.72 19,441,206.72 74,572,717.44 72,200,334.62
Expenses:
Administrative 3,559,853.55 3,100,622.60 - - 3,559,853.55 3,100,622.60
Capital Improvements 77,548.17 973,033.38 - - 77,548.17 973,033.38
Development Services 5,428,628.68 5,854,606.64 - - 5,428,628.68 5,854,606.64
Interest and other costs 1,049,438.04 617,889.91 - - 1,049,438.04 617,889.91
Parks and Recreation 5,543,262.36 5,127,838.00 - - 5,543,262.36 5,127,838.00
Public Safety 16,044,394.02 13,903,548.61 - - 16,044,394.02 13,903,548.61
Public Works 8,369,295.95 8,199,066.78 - - 8,369,295.95 8,199,066.78
Sewer - - 10,434,314,23 8,125,842.41 10,434,314.23 8,125,842.41
Water - - 7,256,553.43 7.831,517.08 7,256,553.43 7,831,517.08
Solid Waste - - 3,529,102.80 3,257,215.29 3,529,102.80 3,257,215.29
Golf Course - - 712,073.98 679,453.56 712,073.98 679,453.56
Indoor Sports Complex - - - - - -
Sporting Complexes - - 1,193,750.22 1,095,071.90 1,193,750.22 1,095,071.90
Total expenses 40,072,420.77 37,776,605.92 23,125,794.66 20,989,100.24 63,198,215.43 58,765,706.16
Increase in net position
before transfers 13,124,907.95 14,982,521.98 ( (1,750,405.94) (1,547,893.52) 11,374,502.01
13,434,628.46
Transfers
(9,587,357.21) (6,178,307.33) 9,587,357.21 6,178,307.33 - -
Increase in net position 3,537,550.74 8,804,214.65 7,836,951.27 4,630,413.81 11,374,502.01 13,434,628.46
Net position-beginning 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
Prior period adjustments
(380,723.44) 18,317,169.35 536,046.92 944,689.48 155,323.48
19,261,858.83
Net position-end of year 224,116,212.57 220,959,385.27
101,565,927.36 93,192,929.17 325,682,139.93 314,152,314.44
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 $434,843.17 (8.9%) more the previous year. During the current year development
services, public safety, public works and parks and recreation revenues increased $272,746.42 (20.7%),
$76,416.72 (90.0%), $3,559.19 (25.0%) and $263,528.89 (16.3%), respectively, over the previous year.
Building permit, inspection fee, and plan review fee revenues increased $23,158.49 (21.6%), $24,157.41
(141.4%), and $14,789.18 (68.7%), respectively, reflecting increased activity during the year. During the
current year, internal revenues fro m salaries charged out to various capital projects increased $50,924.05
(11.5%). Revenue increases at the Cape Girardeau Regional airport accounted for most of the remaining
increase in development service revenue. The current year’s revenue included $87,213.81 in gross revenue from
an airshow. There was no airshow in the previous year. During the current year net margin from fuel sales and
lease revenues increased $45,473.05 (13.3%) and $18,582.30 (6.4%) respectively.
Changes in public safety service charges reflected a $92,129.15 (280.8%) increase in building demolition and
weed abatement assessments. The current year reflected no operating contributions. The previous year reflected
operating contributions of $18,307.54 as charges for service in error. These should have been reported as
operating grants and contributions.
The major impacts to parks and recreation revenues were increases of $63,609.35 (23.7%) and $221,736.78
(41.3%) over the previous revenues associated with the Osage Center and Cape Splash, respectively. The
previous year reflected operating contributions of $45,371.11 as charges for service in error. These should have
been reported as operating grants and contributions.
During the current year, administrative revenues declined $181,408.05 (9.9%). A $155,693.25 distribution from
a bankruptcy case regarding unpaid lease payments was included in the previous year’s revenue . Compensation
for damages received during the current year was $24,417.24 (72.6%) less than the previous year.
Operating grants and contributions were $517,933.26 (33.3%) less than the previous year. The previous year
included $500,000.00 for a pass-through grant to Southeast Missouri State University for a business incubator
project and the current year included $30,500.00 for a historic preservation grant for the cost of hosting a state
historic preservation convention. Both of these grants were one-time grants. During the current year revenue
from emergency shelter grants and an airport operating grant increased $30,380.28 (21.4%) and 29,786.00
(73.4%) over the previous year. Grant and contribution revenue for airport maintenance and housing rehab
projects decreased $113,591.23 (3559.5%) and $62,180.16 (58.9%) from the previous year .
Capital grants and contributions decreased $436,649.63 (20.9) from the previous year. During the current year
the city received grants and contributions totaling $73,607.51, $391,404.01, $3,706.99, $546,154.29,
$159,687.78 and $130,112.59 for airport improvements, park trail projects, the business park
infrastructure project, various street projects, a safe route to school project, and various public safety
equipment purchases, respectively. In the prior year, the City received $61,217.90, $469,633.46,
$826,225.87, $555,083.68, $44,161.91and $80,626.79, respectively, for these items. The current year also
included a $304,778.48 capital grant for a South Sprigg Street Bridge project.
Property tax revenue was $68,778.52 (3.1%) more than the previous year. Assessed values finalized by the
board of equalization increased $6,208,670 (1.3%) and $9,118,810 (8.0%) for real estate and personal property,
respectively. New construction of $3,994,830 was included in the real estate increase. The City’s general tax
levy rate remained the same as the previous year.
CITY OF CAPE GIRARDEAU, MISSOURI
9
Revenues from governmental activities (continued)
Sales tax revenue was 53.3% of the total revenue during the current year vs. 52.5% in the previous year. This
year’s revenue was $688,479.74 (2.5%) more than the previous year. From fiscal year ending June 30, 20 12
through fiscal year ending June 30, 2016 sale tax revenue, adjusted for new taxes, had annual growth rates of
4.9%, 4.6%, 0.7%, 3.7% and 2.5%, respectively.
Other taxes decreased $86,565.19 (0.6%) from the previous year. Motor fuel taxes, convention and tourism
taxes, and merchant licenses grew $42,462.21 (2.9%), $75,527.19 (3.5%), and $15,030.74 (1.1%), respectively.
Franchise taxes, liquor licenses, cigarette taxes, and gaming revenue declined $172,713.00 (4.7%), $3,295.50
(4.5%), $4,736.73 (2.9%) and $38,840.10 (1.1%), respectively, from the previous year.
Gaming revenue received by the casino revenue fund decreased $44,142.73 (1.4%) over the previous year while
gaming revenue received by the riverfront development fund increased $5,302.63 (2.8%) over the previous
year.
Ameren paid 70.5% of the total franchise tax collected during the year based on its electricity and natural gas
revenues. During the current year, Ameren paid $165,753.07 (4.7%) less than the previous year. Payments
received on electricity sales increased $48,881.78 (1.8%) during the current year while natural gas sales
decreased $214,634.85 (26.5%) during the current year. Average monthly electric and natural gas rates were
1.4% and 13.8% less, respectively, during the current year when compared to the previous year. Mild winter
weather negatively impacted franchise tax from natural gas revenues.
During the current year, the City received payments in lieu of gross receipt franchise taxes totaling $678,590.38
from its water and sewer funds. This was $16,329.58 (2.5%) more than the previous year. Water rates increased
3% at the beginning of the current year while sewer rates remained the same. Sewer and water utility revenues
were 1.7% and 4.6% more than the previous year.
Franchise tax paid during the current year by the City’s telecommunication and cable TV service providers
decreased $20,292.47 (6.4%) and $2,997.04 (0.7%), respectively, from the previous year.
The increase in the convention and tourism taxes was comprised of increases of $13,662.17 (1.9%) and
$61,865.02 (4.4%) to revenues from the hotel / motel and restaurant taxes, respectively, over the previous year.
Other revenue which increased $287,247.47 (37.8%) from the previous year to $1,046,633.50 was comprised of
unrestricted grants and contributions, investment earnings, and gain (loss) on sales of assets which totaled
$58,267.16, $1,012,717.42, and ($24,351.08), respectively, during the current year. These revenues grew
(declined) $5,465.81 (10.4%), $405,159.99 (66.7%), and ($123,378.33) (124.6%), respectively, from the
previous year. During the current year, the City sold 14 acres from its business park at a loss of $171,502.21 and
it sold fire station #3 at a gain of $25,000 . The business park site will be used by a local manufacturer of high-
quality protein powders and dietary supplements to expand its business.
Expenses from governmental activities
Total government activities expenses increased $2,295,814.85 (6.1%) over the previous year. Personnel costs
accounted for 55.5% of the total governmental activity expenses. Operating expenses and interest and other
costs accounted for 41.9% and 2.6% of the total governmental activity expenses, respectively. 33.6% of the
personnel costs were for benefits and the remaining was for salaries including vacation and sick leave expense.
Salary expenses increased $580,735.81 (4.1%) and benefits expenses increased $2,690,272.89 (56.3%) during
the current year. Operating expenses decreased $1,406,741.98 (7.7%) while interest and other costs increased
$431,548.13 (69.8%) during the current year.
CITY OF CAPE GIRARDEAU, MISSOURI
10
Expenses from governmental activities (continued)
Full-time, part-time, and overtime salaries increased $418,471.08 (3.4%), $79,260.04 (7.4%), and $83,004.69
(10.6%), respectively, over the previous year. The current year included a 2.0% beginning of the year wage
increase.
An annual report issued by the Missouri Local Government Employees Retirement System and dated June 30,
2016 reflects current year changes to the City’s net pension assets (liabilities) and net pension deferred outflows
(inflows) according to GASB 68. The annual pension costs included in the governmental activities equals the
City’s annual required contributions to its retirement plan plus or minus changes in its net pension assets
(liabilities) and net pension deferred outflows (inflows) reflected in that report. The current year’s pension
expense was increased $1,586,759.14 as a result of these changes. In the previous year pension expense was
decreased $203,476.51 as a result of these changes. Adjusted pension costs were $1,625,422.59 (133.1%) more
than the previous year.
Annual cost of the City’s employee health and dental plan and it workmen’s compensation plan reflects actual
claims incurred during the year. The cost of these plans increased $510,458.69 (34.5%) and $492,815.85
(163.1%) during the current year.
Vehicle fuel expense decreased $89,556.59 (23.4%) from the previous year during the current year as a result of
significantly lower fuel prices. This was the second straight year of decreases in excess of 20%. Administrative,
development services, parks and recreation, public safety, and public works vehicle fuel expenses were reduced
$375.60 (12.8%), $5,671.85 (19.9%), $15,545.73 (28.9%), $47,830.89 (20.4%), and $20,132.52 (31.8%),
respectively during the current year.
Administrative expenses totaled $3,559,853.55 (8.9% of total government activities) this year which was
$459,230.95 (14.8%) more than the previous year. Personnel costs accounted for 56.9% of the total
administrative expenses. 30.6% of the personnel costs were for benefits and the remaining was for salaries
including vacation and sick leave expense. Salary expenses increased $83,214.57 (6.3%) during the current
year. A deputy city manager position was added to staff of the City Manager’s office this year. Benefit expenses
increased $254,243.99 (69.8%). The current year’s costs of providing pension benefits, health and dental
coverage, and workmen’s compensation coverage were $269,360.97, $174,062.64 and $9,590.14, respectively.
These costs increased $196,167.67 (268.0%), 47,664.04 (37.7%), and $5,770.08 (151.0%), respectively , over
the previous year. Operating expenses increased $121,772.39 (8.6%) during the current year. Depreciation
expense accounted for 97.7% of the operating expense increase and was $119,001.31 (30.7%) more than the
previous year.
Development services expenses totaled $5,428,628.68 (13.5% of total government activities) this year which
was $425,977.96 (7.3%) less than the previous year. Personnel costs accounted for 48.3% of the total
development services expenses. 29.3% of the personnel costs were for benefits and the remaining was for
salaries including vacation and sick leave expense. Salary expenses increased $24,345.02 (1.3%) during the
current year. A full-time plan reviewer position was converted to a part-time position during the current year.
Benefit expenses increased $281,077.98 (57.7%). The current year’s costs of providing pension benefits, health
and dental coverage, and workmen’s compensation coverage were $274,119.11, $242,136.87 and $76,657.38,
respectively. These costs increased $178,403.97 (186.4%), 60,327.12 (33.2%), and $47,728.61 (165.0%),
respectively over the previous year. Operating expenses decreased $731,400.96 (20.7%) during the current year.
During the current year, the City spent $97,401.55 in costs related to an airshow, $37,784.39 in advertising
expenses related to an air services grant, $32,370.73 for costs related to establishing a TIF in the downtown
area, $30,500.00 in grant funded costs related to hosting a state historic preservation convention, and a
$20,000.00 payment to Cape County Transit to fund a grant match for vehicle purchases for their fixed route
bus system in the City. In the previous year, there were only $12,000.00 in costs related to these items.
In the previous year, the City spent $113,855.08, $73,000.00, and $47,677.03, respectively, on grant funded runway
improvements and related engineering costs, preliminary design of improvements to Cape Splash, and a future
facility study. Only $6,011.80 was spent on these items in the current year. Additionally, the City
CITY OF CAPE GIRARDEAU, MISSOURI
11
Expenses from governmental activities (continued)
distributed a $500,000.00 pass through grant to the University for its Business Incubator Project. No costs were
incurred on this item in the current year.
The following are other significant operating increases (decreases) over the previous year:
Economic development payments from sales tax rebates $58,749.42 (10.4%) decrease
Housing rehab grant related expenses $50,367.12 (23.9%) decrease
Emergency housing grant related expenses $30,253.78 (17.2%) decrease
Convention and tourism bureau operating contract $62,560.33 (9.3%) decrease
Parks and recreation expenses totaled $5,543,262.36 (13.8% of total government activities) this year which was
$415,424.36 (8.1%) more than the previous year. Personnel costs accounted for 57.7% of the total parks and
recreation expenses. 28.4% of the personnel costs were for benefits and the remaining was for salaries including
vacation and sick leave expense. Salary expenses increased $36,426.69 (1.6%) during the current year. Benefit
expenses increased $368,601.40 (68.5%). The current year’s costs of providing pension benefits, health and
dental coverage, and workmen’s compensation coverage were $341,481.45, $240,961.15 and $94,477.40,
respectively. These costs increased $263,609.76 (338.5%), 62,681.82 (35.2%), and $57,630.20 (156.4%),
respectively over the previous year. Operating expenses increased $10,396.27 (0.4%) during the current year.
The following are significant operating increases (decreases) over the previous year:
Fleet maintenance costs $39,437.67 (13.9%) increase
Protective attire for employees $69,006.69 (221.5%) increase
Vehicle fuel costs $47,830.89 (20.4%) decrease
Depreciation $44,337.75 (6.6%) decrease
Public safety expenses totaled $16,044,394.02 (40.0% of total government activities) this year which was
$2,140,845.41 (15.4%) more than the previous year. Personnel costs accounted for 82.0% of the total public
safety expenses. 35.8% of the personnel costs were for benefits and the remaining was for salaries including
vacation and sick leave expense. Salary and benefit expenses increased $488,811.98 (6.1%) and $1,595,400.73
(51.3%), respectively, during the current year. Full-time, part-time, and overtime salaries increased $386,267.56
(5.4%), $13,783.29 (16.8%), and $88,761.13 (12.9%), respectively, during the current year. Three additional
jailers and two additional patrolmen were added during the current year. The current year’s costs of providing
pension benefits, health and dental coverage, and workmen’s compensation coverage were $1,805,848.63,
$1,090,346.10, and $541,855.69, respectively. These costs increased $876,371.41 (94.3%), 302,166.93
(38.3%), and $339,118.22 (167.3%), respectively over the previous year. Operating expenses increased
$56,632.70 (2.0%) during the current year.
In the current year, the City spent $24,945.59 for preliminary design costs for a new police station. Only $52.12
was spent on this item in the previous year.
The following are other significant operating increases (decreases) over the previous year:
Fleet maintenance costs $32,563.76 (25.6%) increase
Building maintenance cost $21,873.85 (42.4%) decrease
Vehicle fuel costs $15,545.73 (28.9%) decrease
Depreciation $15,466.96 (1.6%) increase
CITY OF CAPE GIRARDEAU, MISSOURI
12
Expenses from governmental activities (continued)
Public works expenses totaled $8,369,295.95 (20.9% of total government activities) this year which was
$170,229.17 (2.1%) more than the previous year. Personnel costs accounted for 14.9% of the total public works
expenses. 37.6% of the personnel costs were for benefits and the remaining was for salaries including vacation
and sick leave expense. Salary expenses decreased $52,062.45 (6.3%) during the current year while benefit
expenses increased $190,948.79 (69.0%). The current year’s costs of providing pension benefits, health and
dental coverage, and workmen’s compensation coverage were $156,253.75, $138,278.27 and $72,298.62,
respectively. These costs increased $110,869.78 (244.3%), 35,864.97 (35.0%), and $42,568.74 (143.2%),
respectively over the previous year. Operating expenses increased $31,342.83 (.4%) during the current year.
In the current year, the City spent $27,064.77 for damage claims against the street department. Only $1,389.91
was spent to pay for claims in the previous year.
The following are other significant operating increases (decreases) over the previous year:
Street maintenance supplies $71,887.79 (43.9%) decrease
Snow and ice removal supplies $29,397.37 (14.6%) decrease
Traffic control supplies $28,397.74 (56.9%) increase
Vehicle fuel costs $20,132.52 (31.8%) decrease
Depreciation $82,377.09 (1.5%) increase
Capital improvements expenses totaled $77,548.17 this year which was $895,485.21 (92.0%) less than the
previous year. The current year costs represent 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). The previous year
included $745,032.36 in street, curb and gutter repairs, $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 , and
$60,540.44 in capital projects that did not meet the City’s capitalization threshold.
Interest and other costs expenses totaled $1,049,438.04 this year which was $431,548.13 (69.8%) more than the
previous year. The current year included $630,132.19 for interest and issuance costs on new debt issued during
the year.
The illustration above makes it clear that all the governmental activities and business -type activities of the City, with
the exception of indoor sports complex, 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. The only activity in the indoor sports complex was contribution of land
for the building site of the new indoor sports complex.
- 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000
Administrative
Development Serv
Parks & Recreation
Public Safety
Public Works
Water
Sewer
Solid Waste
Golf Course
Indoor Sports Complex
Sporting Complexes Expense
Revenue
CITY OF CAPE GIRARDEAU, MISSOURI
13
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 (53.3%),
other taxes (25.4%), and charges for services
(10.0%).
The City’s general sales tax represents 36.7
percent of the total sales tax revenue and 47.4
percent of the total general fund revenues. The
remaining sales taxes are for parks, storm water,
transportation, sewer, water, and public safety
projects.
The general fund accounts for 47.1% and 51.8%
of the other tax and service charge revenue,
respectively. This represents 29.0% and 11.5%
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
$7,836,951.27. During the previous year, these
activities increased the City’s net position by
$4,630,413.81. Business-type activities before
transfers decreased the City’s net position by
$1,750,405.94 during the current year. In the
previous year, these activities decreased the City’s
net position by $1,547,893.52.
During the current year, there were net transfers
from the governmental activities to business-type
activities of $9,587,357. In the previous year, there
were net transfers from governmental activities to
business- type activities of $6,178,307.33.
During the current year transfers were made for the
following:
Capital improvement sales tax -
sewer for bond payments $4,420,000.00
Operating subsidy from general
and parks sales tax funds $ 971,217.84
Capital improvement sales tax -
water for capital projects $3,084,593.69
Casino revenue fund revenues for
transfer station construction $ 846,500.00
Capital improvements sewer and
water funds $ 44,985.65
Net transfer of asset to or from
other government activities $ 220,060.03
During the previous year transfers were made for the
following:
Capital improvement sales tax -
sewer for bond payments $1,627.500.00
General fund revenues for bond
Payments $ 504,817.85
Operating subsidy from general
and parks sales tax funds $1,195.495.00
Capital improvement sales tax -
water for capital projects $1,532,000.00
Employee benefits fund revenues
special payment to pension plan $ 975,617.45
Capital improvements sewer and
sports complex funds $ 269,720.34
Net transfer of asset to or from
other government activities $ 73,156.69
The net change in assets before transfers and general
revenues in the sewer, water, solid waste, golf, indoor
sports complex, and sporting complexes operations
totaled $(2,150,812.85), $(215,036.32), $(43,339.78),
$(181,766.85), $1,335,100.00, and $(796,274.46),
respectively, this year. This compares to
$406,551.84, $(1,453,641.15), $84,956.09,
$(204,157.44), $0.00, and $(673,274.04),
respectively, in the previous year.
Other taxes
25.4%
Sales taxes
53.3%
Other
2.0%
Charge for
Service
10.0%
Operating
grants
1.9%Capital grants
3.1%
Property
taxes
4.3%
Revenues for governmental
activities
Capital
grants
13.2%
Charge
for
Service
85.4%
Other
1.4%
Revenues for business-type activities
CITY OF CAPE GIRARDEAU, MISSOURI
14
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, 2016, the City’s governmental
funds reported combined ending fund balances
of $69,715,065.70, an increase of
$27,873,814.37 (66.6%) from the prior year.
Unassigned fund balances, which are available
for spending at the City’s discretion, account for
$2,878,130.66 (4.1%) 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, 2016: (1) $829,113.67 is classified as
nonspendable because it is either (a) not in
spendable form or (b) legally or contractually
required to be maintained intact (2)
$32,822,782.93 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)
$3,572,455.52 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) $29,612,582.92 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, 2016 unassigned fund balance of the general
fund was $2,878,130.66 while total fund balance
was $7,714,458.77. 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 10.1 percent of total
general fund expenditures including transfers.
However, included in the restricted fund balance
is $4,517,290.00, which had been reserved to meet
the City Charter’s emergency reserve requirement.
This amount represents 15.9 percent of total general
fund expenditures including transfers and could be
used if an emergency was declared by the City
Council.
The Governmental Funds Statement of Revenue,
Expenditures, and Changes in Fund Balance shows that
the total fund balance of the City of Cape Girardeau’s
general fund increased by $24,433.82 during the current
fiscal year. However, the General Fund Statement of
Revenues, Expenditures, and Changes of Fund Balance
prepared on a budget basis shows a current fiscal year
increase of $99,047.66. Differences between the
amounts reflected in the two statements can be found in
the Notes to Budgetary Comparison Schedules found
on pages 94 - 97.
The original adopted general fund budget for the
fiscal year ending June 30, 2016 had expenditures
exceeding revenues by $124,379.00. The actual
general fund results increased fund balances by
$99,047.66. Significant deviations from this budget
are detailed below:
o Sales tax revenue was $243,980.22 (2.4%)
more than the previous year, which was
$42,085.62 (0.4%) less than projected for the
adopted budget. The adopted budget projected
revenues that were 6.3% above the actual fiscal
year ending June 30, 2014 revenues plus an
additional $20,000 in revenues as a result of the
elimination of a “Back to School” sales tax
holiday. Actual revenues grew 3.6% during the
previous year.
Franchise tax revenue was $147,953.92
(3.0%) less than projected for the adopted
budget. Franchise taxes from electric utilities,
natural gas utilities, telecommunications, cable
TV, and the City’s water and sewer service fell
short of their budgets by $11,051.36 (0.4%),
$113,241.74 (15.9%), $6,441.77 (2.1%),
$13,809.43 (3.1%) and $3,409.62 (.5%),
respectively.
Franchise tax paid during the current year by
the City’s telecommunication service providers
decreased $20,292.47 (6.4%) from the previous
year. The amount of projected franchise tax
used in the current year’s budget was based on
revenues from the calendar year 2014.
CITY OF CAPE GIRARDEAU, MISSOURI
15
During the current year, Ameren paid
$165,753.07 (4.7%) less than the previous
year. Payments received on electricity sales
increased $48,881.78 (1.8%) during the
current year while natural gas sales
decreased $214,634.85 (26.5%) during the
current year. Average monthly electric and
natural gas rates were 1.4% and 13.8% less,
respectively, during the current year when
compared to the previous year. Mild winter
weather negatively impacted franchise tax
from natural gas revenues. Projections used
in the current year’s budget had assumed
average electric and natural gas usage from
the three years ending December 31, 2014
and rates that were in effect on February 1,
2015.
During the current year, the City
received payments in lieu of gross receipts
franchise taxes from its water and sewer
funds totaling $678,590.38. This was
$16,329.58 (2.5%) more than the previous
year. The amount of payments in lieu of
franchise taxes projected for the current
year’s budget were based on sewer and
water revenues for the calendar year 2014
and a 3% water rate increase on July 1,
2015.
Franchise tax paid during the current
year by the City’s cable TV service provider
decreased $2,997.04 (0.7%) from the
previous year. The amount of projected
franchise tax used in the current year’s
budget was 6.5% more than actual revenue
for fiscal year ending June 30, 2014.
Property tax revenue increased
$42,695.57 (2.3%) over the previous year
and was $2,243.10 (0.1%) more than the
projected budget. Assessed values finalized
by the board of equalization increased
$6,208,670 (1.3%) and $9,118,810 (8.0%)
for real estate and personal property,
respectively. New construction of
$3,994,830 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. The adopted budget
for the fiscal year ending June 30, 2016 had
assumed 2.0% and 1.5% assessed value
growth for real estate and personal property,
respectively and no levy increases.
Business license revenue increased
$11,345.26 (0.9%) from the previous year and
was $27,955.47 (2.1%) less than the projected
budget. The adopted budget projected revenues
that were 2.0% greater than projected fiscal
year ending June 30, 2015 revenues. Actual
revenue for fiscal year ending June 30, 2015
was $12,830.67 (1.0%) less than had been
assumed by the budget projections.
Other license and permit revenue was
$22,618.47 (8.6%) more than the previous year
and was $8,823.47 (3.2%) more than the
projected budget.
Intergovernmental revenue exceeded
revenue projected for the budget by
$186,752.65 (37.0%). This year’s
intergovernmental revenue included $61,721.98
in revenues from various public safety capital
grants, $141,835.69 for emergency shelter
grants, $30,500.00 for a historic preservation
grants, and $9,354.26 for river flooding
reimbursement grants. None of these revenues
had been projected in the current year’s budget.
The current budget projected $454,793.00 in
grants for public safety operating expenses.
Actual revenue was $55,569.05 (12.2%) less
than this amount during the current year and
reflected corresponding reductions in grant
related expenses.
Service charges exceeded the amount
projected in the current year’s budget by $32.05
and were $37,200.47 (18.6%) more than the
previous year. Court costs were $4,997.69
(8.2%) more than the previous year but were
$13,700.99 (17.1%) less than projected in the
budget. Development service fees were
$40,868.49 (83.2%) more than the previous
year and were $15,559.09 (20.9%) more than
projected in the budget.
o Fines and forfeits revenue was $16,969.50
(2.4%) less than the previous year and was
$89,878.00 (11.6%) less than projected in the
budget. The adopted budget for fiscal year
ending June 30, 2016 had assumed revenue
levels equal to the actual revenue for the
calendar year 2013. The number of traffic cases
heard by the municipal court in fiscal year
ending June 30, 2016 was 15.3% less than those
heard in calendar year 2013.
CITY OF CAPE GIRARDEAU, MISSOURI
16
During the current fiscal year, total
expenditures were $697,316.05 (3.0%)
more than the original budget. Operating
expenditures were $380,131.94 (1.6%) less
than their original budget. Actual debt
service and capital expenditures exceeded
their original budgets by $1,028,475.55
(803.6%) and $48,972.44. The current
year’s debt service costs included the early
repayment of $1,040,000 in special
obligation bonds which were not
anticipated by the original budget. The
original budget included no capital
expenditures.
Transfers to other funds for operating
subsidies were $95,166.80 (2.2%) less than
original budget and transfers for capital
expenditures exceeded their original
budgets by $217,343.47 (289.8%).
Proprietary funds. The City of Cape Girardeau’s
enterprise funds are all presented as major funds
for purposes of this report. As a result, all
statements related to the enterprise funds are
presented at the government-wide level. The
City does have Internal Service funds, which are
reported in total on the Proprietary Fund
Statement and consolidated with other
governmental activities on the government -wide
statements.
General Fund Budgetary Highlights
Total expenditures and transfers on the final
amended budget were $1,634,609.00 (5.9%)
more than the original adopted budget. The
changes that were appropriated by the City
Council can be summarized as follows:
Administrative – $70,548.55 for legal advice,
additional salaries, and the cost of the fire union
negotiator.
Development Services – $155,000.00 for grant
funded community assistance expenditures and
payments associated with the downtown TIF
district.
Public Safety – $145,570.00 to cover grant costs
related to various public safety operating grants and
the purchase of equipment through capital grants;
additional overtime costs; and an insurance claim.
Parks and Recreation - $33,671.45 to pay an
insurance claim, rebuild a transformer and purchase
various capital items.
Public Works – $22,869.00 to cover property damage
and the cost of a wayfinding sign.
Other Debt - $1,028,939.00 for the early payoff of
the 2005 special obligation bonds.
General Fund Transfer to Airport Fund –
$8,818.00 to cover unexpected repairs.
General Fund Transfer to Parks and Recreation
Fund – $4,998.00 for repair of a water line break at
the city pool.
General Fund Transfer to Public Safety Trust
Fund - $58,000.00 as required by the Fire Sales
Tax.
General Fund Transfer to Housing Development
Grants Fund – $2,500.00 to cover additional costs
not reimbursed by grants.
General Fund Transfer to Sewer Fund -
$6,613.00 to purchase equipment from sewer fund.
General Fund Transfer to Sports Complex Fund
– $95,000.00 to cover operating subsidy shortfall
and $2,082.00 for street repair.
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.
CITY OF CAPE GIRARDEAU, MISSOURI
17
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, 2016,
amounts to $357,238,259.37 (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 $3,251,757.36
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.
$67,984.13 was spent on lighting rehab on
Runway 10/28 at the Airport and was
partially funded by MODOT.
Construction on this project will continue
into the next year.
$4,943,335.23 of new bond funds were
used to design a new police station and an
addition to an existing Fire Station; and to
begin the process of building a new
Indoor Sports Complex.
$365,831.55 in funds received from the Isle
of Capri helped improve our trail system and
sidewalks, provide sewer service at the new
business park, and to start the processes of
new E-ticket software for our police
department, mobile terminals for our fire
department, and a new City website design.
Construction costs totaling $2,624,080.91 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, costs to
convert a wet scrubber to a dry scrubber,
water tank painting, various water
distribution improvements, the addition of
water main extensions and the continuation of
the two-inch water main replacement
program.
Costs totaling $169,068.34 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. $88,765.29 and
$518,985.64 were spent respectively during
the current year on these projects.
Costs totaling $1,862,101.69 related to the
new Wastewater Treatment Plant were
incurred this year and funded by the State
Revolving Loan Program.
Other sewer projects amounted to
$2,773,106.88 in capital expenditures during
the current year. Projects included a storm
water sewer system, a wastewater scada
upgrade, various sanitary sewer projects, and
continuation of the Inflow & Infiltration
reduction program.
Department of Transportation funds were used
to partially fund the $410,518.00 spent to
expand the City’s trail system.
$3,648,438.46 was spent on the construction
of a new Transfer Station.
3.3%
58.2%
34.0%
4.5%
Land
Buildings/Equipment
Infrastructure
Construction in Progress
CITY OF CAPE GIRARDEAU, MISSOURI
18
A local developer donated land with a
value of $1,335,100.00 for the City to
build an indoor sports complex.
$36,502.42 was spent on an intersection
that will be transformed from a four way
stop into a roundabout. This will be
partially funded by a Department of
Transportation grant.
Preliminary costs of $35,542.31 were spent on
a parking lot and preparing a site for
playground equipment in one of the city’s
parks.
$249,104.00 was incurred with the addition of
new slides to the water park.
Additional information about the City’s capital assets
can be found in note D to the financial statements.
City of Cape Girardeau's Capital Assets
(net of depreciation)
Governmental Business-type
Activity Activities Total
2016 2015 2016 2015 2016 2015
Land 9,712,739.11 10,117,070.83 1,985,017.54 649,917.54 11,697,756.65 10,766,988.37
Buildings and
system
improvements 19,915,673.55 20,589,455.03 5,626,429.05 1,984,568.59 25,542,102.60 22,574,023.62
Improvements
other than
buildings 18,516,927.09 19,411,780.52 152,430,823.65 152,069,859.54 170,947,750.74 171,481,640.06
Equipment 7,195,351.75 5,851,220.69 4,242,211.34 3,906,471.15 11,437,563.09 9,757,691.84
Infrastructure 121,520,534.17 119,667,592.25 - - 121,520,534.17 119,667,592.25
Construction
in progress 8,593,831.37 6,646,861.41 7,498,720.75 4,089,883.22 16,092,552.12 10,736,744.63
Total 185,455,057.04 182,283,980.73 171,783,202.33 162,700,700.04 357,238,259.37 344,984,680.77
CITY OF CAPE GIRARDEAU, MISSOURI
19
Long-term debt.
At the end of the fiscal year, the City of Cape
Girardeau had total debt outstanding of
$129,863,408.64. Bonded debt outstanding
totaling $86,803,779.04 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 increased by
$28,175,074.56 (27.7%) during the year.
During the year the City received disbursements
totaling $4,891,313.56 and $700,000.00 from
loans through the state revolving loan program
and the Missouri Transportation Finance
Corporation. These were used to fund costs of
construction at the new wastewater treatment
plant and continuation of the City’s Inflow &
Infiltration reduction program and were or will
be used to fund initial design and construction
costs of a new bridge.
During the year, the City also received bond proceeds
totaling $38,810,102.20 from the issuance of two
special obligation bonds. These were used to refund
$1,040,000 of 2005 special obligation bonds and
$6,165,000 of 2009 leasehold revenue bonds and
were or will be used to fund the design and
construction costs of a transfer station and an indoor
sports complex; replacement of police headquarters,
fire station number four and various fire apparatus;
and upgrades to fire stations numbers one and two.
Regularly scheduled principal payments and
amortization of bond premiums / discounts resulted
in outstanding long-term debt being reduced by
$9,021,341.20.
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
2016 2015 2016 2015 2016 2015
Notes payable
4,319,900.82
3,969,933.66
-
- 4,319,900.82 3,969,933.66
Special obligation
bonds
35,145,082.74
1,148,227.65 3,594,646.04 560,538.00 38,739,728.78 1,708,765.65
Revenue bonds
760,600.00 806,300.00
86,043,179.04 86,860,158.40 86,803,779.04 87,666,458.40
Leasehold
revenue bonds -
8,343,176.37 - - - 8,343,176.37
40,225,583.56
14,267,637.68
89,637,825.08 87,420,696.40
129,863,408.64 101,688,334.08
CITY OF CAPE GIRARDEAU, MISSOURI
20
Economic Factors and the Next Year’s Budget
Commercial development increased significantly
during the past year. Values of commercial
permits issued during the year were 241.3%
higher than the previous year and were at their
second highest levels of the past 10 years.
Residential development decreased during the
past year. Values of residential permits issued
during the year were 12.3 % lower than the
previous year. However, last year’s residential
development was at its third strongest level of
the past 10 years.
Commercial and residential permits valued at
$69.0 million and $17.0 million were issued this
year. Commercial and residential permits valued
at $20.2 million and $19.3 million were issued in
the previous year
Local employment continues to be stronger than
national employment, although not as strong as
the previous year. The Cape Girardeau County
unadjusted unemployment rate was only 4.1% in
October 2016. Statewide and national unadjusted
unemployment rates were 4.1% and 4.7%,
respectively, for this month. The unadjusted
unemployment rates were 3.6%, 4.0% and 4.8%
for the county, state, and nation, respectively, for
the previous October. City construction projects
and private development provide significant
support to local construction employment.
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.
The facilities are expected to be operational by
the fall of 2017.
In April 2016, a local investor group announced
plans to redevelopment the vacant Marquette
Hotel into a high-tech hub for startup technology
companies and to turn the H-H Building and the
adjacent Marquette Center into a Marriott
“Courtyard” Hotel. The $20 million development
involves 145,000 square feet of historic
renovation that when completed is expected to
draw 200 to 300 workers and guests daily to the
Cape Girardeau downtown area.
During the year, the City began construction of the
Cape Girardeau SportsPlex, a 121,000 square foot
indoor sports complex that will serve as the area’s
premier sports venue. The facility will include six
hardwood courts, two indoor turf fields, meeting
rooms and concessions area, among other amenities.
Its anticipated that a significant economic impact will
be recognized by hotels, restaurants, and retail outlets
from visitors coming from an expected four-hour
radius to participate in tournaments and events hosted
by the facility. The facility is expected to be
operational by the spring of 2017.
During the year, the following economic
development activity took place in Cape Girardeau:
Integrated Managed Care Systems, a healthcare
information technology firm, announced plans to
expand its operations into the new Marquette
development.
Health Check, Inc., a healthcare company that
provides a variety of revenue cycle services for
hospitals throughout the United States,
announced plan to expand its operations into the
Marquette development. 50 – 60 employees are
expected to be added within the next year.
During the current year Si03, a local
manufacturer of high-quality protein powders
and dietary supplements, purchased 14 acres
from the City’s business park. The site will be
used to expand its manufacturing capabilities.
Vinuity, a St. Louis information technology
professional services company opened an office
in Cape with 4 new employees.
Cape Girardeau was chosen as one of only three
2015 Great American Main Street Award
winners. In the past year, the downtown area has
seen a rise in preservation projects, which have
led to 85 net new jobs, reinvestment of over $6.6
million and 34 new or relocated businesses.
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 2.4% while
inflation grew at 0.7%. In the previous year sales tax
revenue from the general sales tax increased 3.6%
while inflation grew at 0.7 %.
The City’s restaurant gross receipt tax and
hotel/motel gross receipt tax increased 4.4% and
1.9%, respectively, during the current year. In the
previous year, they increased 5.1% and 7.2%,
respectively.
CITY OF CAPE GIRARDEAU, MISSOURI
21
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.
Cape Girardeau continues to be a regional retail
center for much of Southeast Missouri and
Southern Illinois. Since 2013 the City has
increased its share of the local retail market.
The previous table, which includes the City of
Cape Girardeau and significant retail centers
within a 50-mile radius, shows the percentage of
estimated sales made by each City to the total
estimated sales of the five cities. During the
current year, the City increased its share of the
local market and reversed a downward trend in
the previous two years.
Local Economic Development.
In the previous 11 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.
Details of these agreements can be found in Note
S in the Notes to the Financial Statements
section.
Payments made by the City pursuant to these
agreements totaled $505,325 during the current
year. Payments totaling $3,004,994 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 continuing to market its 247.43-acre
business park site purchased in February, 2013 from
the Southeast Missouri University Foundation and
located along I-55 around the LaSalle interchange.
The land will be used for future business
development and is best suited for distribution
centers, light manufacturing, technology-related
businesses and retail development.
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, 2017 and
financial condition
The adopted general fund budget for the fiscal year
ending June 30, 2016, was projected to produce a
$128,788 deficit and included a 2.0% wage increase
effective July 1, 2016. Projected revenues used in
preparing the budget were based on conservative
revenue assumptions.
The approved general fund budget projected the use
of $164,349 prior year’s unassigned fund balance to
increase the emergency reserve fund balance by
$35,561 and fund $128,788 in one-time operating
expenses.
The City’s current financial position had 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 funds, excluding police,
SALES TAX COMPARISON
FY13 FY14 FY15 FY16
Cape Girardeau 44.0% 43.8% 43.7% 44.2%
Carbondale 26.7% 26.4% 26.1% 25.6%
Jackson 9.3% 9.6% 9.6% 9.6%
Perryville 7.2% 7.2% 7.4% 7.4%
Sikeston 12.8% 13.0% 13.2% 13.2%
100.0% 100.0% 100.0% 100.0%
CITY OF CAPE GIRARDEAU, MISSOURI
22
fire, and various park divisions is still not at
desired levels.
Requests for Information
This financial report is designed to provide a
general overview of the City of Cape Girardeau’s
finances for all those with an interest in the
City’s finances. Questions concerning any of the
information provided in this report or requests
for additional financial information should be
addressed to the Finance Director, City of Cape
Girardeau, PO Box 617, Cape Girardeau, MO
63702-0617.
BASIC FINANCIAL STATEMENTS
Governmental
Activities
Business-type
Activities Total
ASSETS
Current assets:
Pooled Cash and investments $ 72,834,916.30 $ 11,759,962.72 $ 84,594,879.02
Cash and cash equivalents 80,401.06 - 80,401.06
Investments 350,765.63 - 350,765.63
Taxes receivable 4,687,943.39 - 4,687,943.39
Utility charges receivable - 2,667,984.77 2,667,984.77
Special Assessments receivable 305,361.17 20,505.81 325,866.98
Interest receivable 251.02 249.16 500.18
Other receivables 564,101.40 51,955.36 616,056.76
Notes receivable 168,544.29 - 168,544.29
Motor fuel receivable 124,226.72 - 124,226.72
Grants receivable 581,916.04 16,288.58 598,204.62
Inventory 262,269.58 1,028,824.18 1,291,093.76
Prepaid items 393,393.35 22,916.38 416,309.73
Internal balances (171,197.15) 171,197.15 -
Total current assets 80,182,892.80 15,739,884.11 95,922,776.91
Noncurrent assets:
Restricted cash and cash equivalents - 5,979,261.57 5,979,261.57
Net pension assets 338,199.89 229,539.76 567,739.65
Land 9,712,739.11 1,985,017.54 11,697,756.65
Buildings 19,915,673.55 5,626,429.05 25,542,102.60
Land Improvements 18,516,927.09 152,430,823.65 170,947,750.74
Equipment 7,195,351.75 4,242,211.34 11,437,563.09
Infrastructure 121,520,534.17 - 121,520,534.17
Construction in process 8,593,831.37 7,498,720.75 16,092,552.12
Total noncurrent assets 185,793,256.93 177,992,003.66 363,785,260.59
Total assets 265,976,149.73 193,731,887.77 459,708,037.50
Deferred outflows of resources:
Deferred outflow related-pensions 7,765,340.69 1,108,152.31 8,873,493.00
Total deferred outflows of resources 7,765,340.69 1,108,152.31 8,873,493.00
City of Cape Girardeau
Statement of Net Position
June 30, 2016
Primary Government
See Accompanying Notes to Basic Financial Statements.
Governmental
Activities
Business-type
Activities Total
LIABILITIES
Current liabilities:
Accounts Payable 3,155,588.06 1,282,402.29 4,437,990.35
Salaries and benefits payable 937,878.41 185,168.78 1,123,047.19
Interest payable 154,781.48 896,828.53 1,051,610.01
Other liabilites 272,105.03 627,513.17 899,618.20
Estimated claims 678,500.00 - 678,500.00
Due to other governments 1,206.64 66,857.79 68,064.43
Unearned revenues 138,399.41 80,647.11 219,046.52
Total current liabilities 5,338,459.03 3,139,417.67 8,477,876.70
Noncurrent liabilities:
Estimated landill post closure costs - 30,000.00 30,000.00
Notes payable 4,319,900.82 - 4,319,900.82
Revenue bonds payable 760,600.00 86,043,179.04 86,803,779.04
Special obligation bonds payable 35,145,082.74 3,594,646.04 38,739,728.78
Compensated absences payable 1,358,564.83 181,993.75 1,540,558.58
Net OPEB obligation 2,625,897.00 223,575.00 2,849,472.00
Net pension liabilities 76,773.43 61,301.22 138,074.65
Total noncurrent liabilities 44,286,818.82 90,134,695.05 134,421,513.87
Total liabilities 49,625,277.85 93,274,112.72 142,899,390.57
NET POSITION
Net investment in capital assets 168,824,795.36 81,683,456.59 250,508,251.95
Restricted for depreciation and replacement - 150,000.00 150,000.00
Restricted for emergency fund 5,230,506.00 3,073,250.00 8,303,756.00
Restricted for mausoleum 96,004.53 - 96,004.53
Restricted for operation and maintenance 39,504.30 - 39,504.30
Unrestricted 49,925,402.38 16,659,220.77 66,584,623.15
Total net position $ 224,116,212.57 $ 101,565,927.36 $ 325,682,139.93
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Net Position
June 30, 2016
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 $ 1,049,438.04 $ - $ - $ - $ (1,049,438.04) $ - $ (1,049,438.04)
Development Services 5,428,628.68 1,591,314.72 506,568.90 73,607.51 (3,257,137.55) - (3,257,137.55)
Public Safety 16,044,394.02 161,296.28 436,481.97 130,112.59 (15,316,503.18) - (15,316,503.18)
Public Works 8,369,295.95 17,804.19 7,881.02 530,372.00 (7,813,238.74) - (7,813,238.74)
Parks and Recreation 5,543,262.36 1,877,801.53 84,313.13 - (3,581,147.70) - (3,581,147.70)
Capital Improvements 77,548.17 - - 918,312.51 840,764.34 - 840,764.34
Administrative 3,559,853.55 1,647,333.70 - - (1,912,519.85) - (1,912,519.85)
Total governmental activities 40,072,420.77 5,295,550.42 1,035,245.02 1,652,404.61 (32,089,220.72) - (32,089,220.72)
Business-type activities:
Golf Course Fund 712,073.98 530,307.13 - - - (181,766.85) (181,766.85)
Indoor Sports Complex - - - 1,335,100.00 - 1,335,100.00 1,335,100.00
Sewer Fund 10,434,314.23 7,245,787.89 59,424.46 978,289.03 - (2,150,812.85) (2,150,812.85)
Solid Waste Fund 3,529,102.80 3,447,422.81 38,340.21 - - (43,339.78) (43,339.78)
Sporting Complexes Fund 1,193,750.22 397,250.76 225.00 - - (796,274.46) (796,274.46)
Water Fund 7,256,553.43 6,545,914.32 1,863.81 493,738.98 - (215,036.32) (215,036.32)
Total business-type activities 23,125,794.66 18,166,682.91 99,853.48 2,807,128.01 - (2,052,130.26) (2,052,130.26)
Total primary government $ 63,198,215.43 $ 23,462,233.33 $ 1,135,098.50 $ 4,459,532.62 (32,089,220.72) (2,052,130.26) (34,141,350.98)
2,297,081.57 - 2,297,081.57
28,378,951.82 - 28,378,951.82
4,797,116.08 - 4,797,116.08
1,501,816.04 - 1,501,816.04
2,211,930.89 - 2,211,930.89
1,331,049.97 - 1,331,049.97
69,856.88 - 69,856.88
3,579,691.92 - 3,579,691.92
58,267.16 - 58,267.16
1,012,717.42 240,526.16 1,253,243.58
(24,351.08) 61,198.16 36,847.08
(9,587,357.21) 9,587,357.21 -
35,626,771.46 9,889,081.53 45,515,852.99
3,537,550.74 7,836,951.27 11,374,502.01
220,959,385.27 93,192,929.17 314,152,314.44
(380,723.44) 536,046.92 155,323.48
$ 224,116,212.57 $ 101,565,927.36 $ 325,682,139.93
City of Cape Girardeau
Statement or Activities
For the Year Ended June 30, 2016
Net (Expense) Revenue and Changes in Net Position
Program Revenues Primary Government
General revenues:
Property taxes
Sales taxes
Franchise taxes
Motor fuel taxes
Convention and tourism taxes
Merchant licenses
Liquor licenses
Other taxes
Unrestricted grants and contributions
Prior period adjustment
Net position - ending
See Accompanying Notes to Basic Financial Statements.
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
FUND FINANCIAL STATEMENTS
General Fund Airport Fund
Parks and
Recreation Fund
Casino Revenue
Fund
Transportation Sales
Tax IV
Parks/Stormwater
Sales Tax-Cap
General Capital
Improvements
Total Nonmajor
Funds
Total Governmental
Funds
ASSETS
Current assets:
Cash and cash equivalents $ 8,780.00 $ - $ - $ - $ - $ 162.10 $ - $ 57,946.22 $ 66,888.32
Pooled cash and investments 5,529,793.70 61,015.85 851,601.15 3,386,475.63 8,765,488.27 4,627,583.74 29,301,513.78 14,782,519.77 67,305,991.89
Receivables-
Real estate taxes, net 105,670.96 - - - - - - 20,451.17 126,122.13
Property taxes, net 26,509.75 - - - - - - 4,965.65 31,475.40
Sales tax 956,966.54 - - - 2,168.35 358,679.82 - 1,300,983.04 2,618,797.75
Franchise taxes 1,713,675.33 - - - - - - - 1,713,675.33
Hotel & motel tax - - - - - - - 197,872.78 197,872.78
Special assessments 223,374.03 - - - - - - 81,987.14 305,361.17
Other 28,001.79 127,476.96 20,930.69 299,790.66 - 2,058.13 - 39,905.56 518,163.79
Motor fuel tax - - - - - - - 85,584.43 85,584.43
Vehicle license fees - - - - - - - 12,970.61 12,970.61
Motor vehicle sales tax - - - - - - - 25,671.68 25,671.68
Grants 186,591.14 105,542.51 508.63 - - 1,135.43 - 286,565.46 580,343.17
Other funds 221,713.92 - - - - - - - 221,713.92
Inventory 229.84 61,120.99 16,349.81 - - - - 6,607.85 84,308.49
Prepaid items 83,693.22 20,062.51 27,855.13 - - - - 143,476.53 275,087.39
Total Current assets 9,085,000.22 375,218.82 917,245.41 3,686,266.29 8,767,656.62 4,989,619.22 29,301,513.78 17,047,507.89 74,170,028.25
Noncurrent assets:
Advances to other funds 81,765.01 - - 470,161.27 - - - - 551,926.28
Total Noncurrent assets 81,765.01 - - 470,161.27 - - - - 551,926.28
Total assets $ 9,166,765.23 $ 375,218.82 $ 917,245.41 $ 4,156,427.56 $ 8,767,656.62 $ 4,989,619.22 $ 29,301,513.78 $ 17,047,507.89 $ 74,721,954.53
City of Cape Girardeau
Balance Sheet
Governmental Funds
June 30, 2016
See Accompanying Notes to Basic Financial Statements.
General Fund Airport Fund
Parks and
Recreation Fund
Casino Revenue
Fund
Transportation Sales
Tax IV
Parks/Stormwater
Sales Tax-Cap
General Capital
Improvements
Total Nonmajor
Funds
Total Governmental
Funds
LIABILITIES
Current liabilities:
Accounts payable $ 302,444.29 $ 85,012.61 $ 116,296.69 $ 22,502.77 $ 251,685.13 $ 24,121.89 $ 1,972,578.94 $ 290,623.07 $ 3,065,265.39
Salaries and benefits payable 663,612.43 27,455.67 130,842.20 - - - - 4,072.21 825,982.51
Other liabilities 120,286.95 48,652.80 11,857.28 91,308.00 - - - - 272,105.03
Due to other governments - - - - - - - 1,206.64 1,206.64
Payable to other funds - - - - - - - 221,713.92 221,713.92
Unearned revenues 15,000.00 1,897.28 121,502.13 - - - - - 138,399.41
Deferred revenues 350,962.79 25,000.00 - - - - - 106,253.14 482,215.93
Total Current liabilities 1,452,306.46 188,018.36 380,498.30 113,810.77 251,685.13 24,121.89 1,972,578.94 623,868.98 5,006,888.83
Noncurrent liabilities:
Total Noncurrent liabilities - - - - - - - - -
Total liabilities 1,452,306.46 188,018.36 380,498.30 113,810.77 251,685.13 24,121.89 1,972,578.94 623,868.98 5,006,888.83
FUND BALANCES (DEFICITS)
Nonspendable 167,558.23 20,062.51 27,855.13 470,161.27 - - - 143,476.53 829,113.67
Restricted 4,611,194.53 - - - 8,515,971.49 4,965,497.33 - 14,730,119.58 32,822,782.93
Committed - - - 3,572,455.52 - - - - 3,572,455.52
Assigned 57,575.35 167,137.95 508,891.98 - - - 27,328,934.84 1,550,042.80 29,612,582.92
Unassigned 2,878,130.66 - - - - - - - 2,878,130.66
Total fund balances (deficits) 7,714,458.77 187,200.46 536,747.11 4,042,616.79 8,515,971.49 4,965,497.33 27,328,934.84 16,423,638.91 69,715,065.70
Total liabilities and fund balances (deficits) $ 9,166,765.23 $ 375,218.82 $ 917,245.41 $ 4,156,427.56 $ 8,767,656.62 $ 4,989,619.22 $ 29,301,513.78 $ 17,047,507.89 $ 74,721,954.53
City of Cape Girardeau
Balance Sheet
Governmental Funds
June 30, 2016
See Accompanying Notes to Basic Financial Statements.
$69,715,065.70
183,678,256.80
6,702,767.99
7,816,557.42
(237,663.13)
(40,225,583.56)
(2,511,390.00)
(1,304,014.58)
482,215.93
$224,116,212.57
City of Cape Girardeau
Reconciliation of Balance Sheet
To the Statement of Net Position
June 30, 2016
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activiites 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 which 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 it does not required 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
The Notes to Financial Statements are an Integral Part of This Statement.
General Fund Airport Fund
Parks and
Recreation Fund
Casino Revenue
Fund
Transportation
Sales Tax IV
Parks/Stormwater
Sales Tax-Cap
General Capital
Improvements Total Nonmajor Funds
Total Governmental
Funds
REVENUES
Taxes $ 17,232,591.39 $ - $ - $ 3,224,682.46 $ 3,032,305.18 $ 3,898,815.23 $ - $ 13,828,950.35 $ 41,217,344.61
Licenses & permits 1,609,166.00 - - - - - - 4,506.00 1,613,672.00
Intergovernmental 610,556.93 284,384.77 732.44 19,440.54 - 2,145.32 - 2,575,749.60 3,493,009.60
Charges for services 237,337.05 475,353.22 1,582,910.10 - - - - 95,034.92 2,390,635.29
Internal charges 1,023,643.58 - - - - - - - 1,023,643.58
Fines and forfeits 687,997.00 - - - - - - - 687,997.00
Miscellaneous 328,174.89 298,547.52 21,481.80 1,408.41 - - - 113,304.43 762,917.05
Investment revenue 95,561.60 937.91 10,599.80 93,090.89 138,349.23 75,879.77 223,167.64 282,886.15 920,472.99
Special assessments 136,212.41 - - - - - - 11,852.83 148,065.24
Total revenues 21,961,240.85 1,059,223.42 1,615,724.14 3,338,622.30 3,170,654.41 3,976,840.32 223,167.64 16,912,284.28 52,257,757.36
EXPENDITURES
Current:
Administrative 2,591,612.76 - - 98,064.76 - - - - 2,689,677.52
Capital improvements - - - - - - - 9,044.47 9,044.47
Development services 2,346,079.65 1,482,494.37 - 15,640.12 252,662.74 - - 1,181,149.25 5,278,026.13
Parks and recreation 1,655,656.64 - 2,579,525.53 8,926.66 - 3,000.00 - 59,115.21 4,306,224.04
Public safety 13,404,649.83 - - 45,733.00 - - - 523,215.76 13,973,598.59
Public works 2,738,873.31 - - - - - - 54,494.37 2,793,367.68
Debt service:
Administrative charges 291.50 - - - - 3,773.30 - - 4,064.80
Issuance cost 11,068.17 - - - - 60,557.56 307,689.89 - 379,315.62
Interest 25,102.88 - - 109,967.16 - 386,384.12 43.52 158,042.11 679,539.79
Principal 1,120,000.00 - - 350,032.84 - 8,315,000.00 - 485,700.00 10,270,732.84
Capital outlay:
Administrative - - - 19,500.00 - - - - 19,500.00
Capital Improvements - - - 182,043.09 2,867,303.99 - 5,021,401.93 2,127,902.48 10,198,651.49
Development Services - 138,137.03 - 4,389.00 - - - - 142,526.03
Parks and recreation 5,887.20 - - - - 429,824.28 - 302,679.45 738,390.93
Public safety 12,495.27 - - 162,780.74 - - - 164,899.58 340,175.59
Public works 27,082.32 - - - - - - - 27,082.32
Total expenditures 23,938,799.53 1,620,631.40 2,579,525.53 997,077.37 3,119,966.73 9,198,539.26 5,329,135.34 5,066,242.68 51,849,917.84
Excess (deficiency) of revenues
over expenditures (1,977,558.68) (561,407.98) (963,801.39) 2,341,544.93 50,687.68 (5,221,698.94) (5,105,967.70) 11,846,041.60 407,839.52
OTHER FINANCING SOURCES (USES)
Transfers out (4,494,065.67) - - (3,529,850.57) - (466,391.23) - (15,408,067.29) (23,898,374.76)
Transfers in 5,393,190.38 591,589.13 1,043,937.26 - - 30,000.00 4,091,273.37 3,453,803.06 14,603,793.20
Asset disposition 94,828.64 5,295.63 3,006.41 251,939.83 - 10,753.13 - 17,566.48 383,390.12
Bond proceeds 1,008,039.15 - - - - 6,282,903.15 28,312,387.50 - 35,603,329.80
Other loan proceeds - - - - - - - 700,000.00 700,000.00
Total other financing source (uses) 2,001,992.50 596,884.76 1,046,943.67 (3,277,910.74) - 5,857,265.05 32,403,660.87 (11,236,697.75) 27,392,138.36
Net change in fund balances 24,433.82 35,476.78 83,142.28 (936,365.81) 50,687.68 635,566.11 27,297,693.17 609,343.85 27,799,977.88
Fund balances - beginning 7,690,024.95 151,723.68 453,604.83 4,978,982.60 8,465,283.81 4,329,931.22 31,241.67 15,740,458.57 41,841,251.33
Prior period adjustment - - - - - - - 73,836.49 73,836.49
Fund balances - ending $ 7,714,458.77 $ 187,200.46 $ 536,747.11 $ 4,042,616.79 $ 8,515,971.49 $ 4,965,497.33 $ 27,328,934.84 $ 16,423,638.91 $ 69,715,065.70
The Notes to Financial Statements are an Integral Part of This Statement.
City of Cape Girardeau
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2016
$27,799,977.88
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 the amount by which depreciation was more or (less) than capital outlays.
3,625,277.27
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.(1,586,756.14)
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.(111,054.00)
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..20,320.13
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in
governmental funds.151,183.86
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.
(346,441.49)
Accrued expenses which 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.
(57,010.89)
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.
(25,957,945.88)
$3,537,550.74
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, 2016
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
The Notes to Financial Statements are an Integral Part of This Statement.
Governmental
Activities
Sewer Fund Water Fund Solid Waste Fund Golf Course Fund
Indoor Sports
Complex Fund
Sporting Complexes
Fund
Total Enterprise
Funds
Internal Service
Funds
ASSETS
Current assets:
Cash and cash equivalents $ - $ - $ - $ - $ - $ - $ - $ 13,512.74
Pooled cash and investments 3,426,052.31 6,635,020.73 1,388,944.61 128,845.23 - 181,099.84 11,759,962.72 5,528,924.41
Investments - - - - - - - 350,765.63
Utilities charges, net 1,031,798.61 936,373.91 699,812.25 - - - 2,667,984.77 -
Special assessments 14,955.45 5,550.36 - - - - 20,505.81 -
Other 5,074.81 46,481.30 219.65 179.60 - - 51,955.36 45,937.61
Notes receivable - - - - - - - 168,544.29
Interest 249.16 - - - - - 249.16 251.02
Grants 10,784.07 1,322.08 4,144.93 - - 37.50 16,288.58 1,572.87
Inventory - 1,001,884.59 - 5,669.38 - 21,270.21 1,028,824.18 177,961.09
Prepaid items 15,882.08 3,919.23 2,087.43 410.99 - 616.65 22,916.38 118,305.96
Total current assets 4,504,796.49 8,630,552.20 2,095,208.87 135,105.20 - 203,024.20 15,568,686.96 6,405,775.62
Noncurrent assets:
Rest cash and cash equivalents 5,979,261.57 - - - - - 5,979,261.57 -
Net pensions assets 123,604.76 12,520.68 72,033.74 21,380.58 - - 229,539.76 -
Land 537,677.99 - 112,239.55 - 1,335,100.00 - 1,985,017.54 37,500.00
Buildings 8,078,346.00 346,636.63 4,902,949.84 163,674.80 - 1,006,876.94 14,498,484.21 53,906.45
Equipment 4,178,218.31 2,607,603.95 3,723,399.41 190,894.34 - 307,388.97 11,007,504.98 5,876,666.64
Other improvements 146,422,109.98 58,947,039.74 344,022.92 1,972,744.42 - 1,557,642.35 209,243,559.41 155,653.19
Construction in progress 4,153,144.84 3,345,575.91 - - - - 7,498,720.75 -
Accumulated depreciation (45,566,537.91) (21,153,582.73) (3,735,960.42) (1,061,690.77) - (932,312.73) (72,450,084.56) (4,346,926.04)
Total noncurrent assets 123,905,825.54 44,105,794.18 5,418,685.04 1,287,003.37 1,335,100.00 1,939,595.53 177,992,003.66 1,776,800.24
Total assets 128,410,622.03 52,736,346.38 7,513,893.91 1,422,108.57 1,335,100.00 2,142,619.73 193,560,690.62 8,182,575.86
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to the pension plan 501,515.05 80,923.41 325,960.80 82,458.73 - 117,294.32 1,108,152.31 286,983.16
Total deferred outflows of resources 501,515.05 80,923.41 325,960.80 82,458.73 - 117,294.32 1,108,152.31 286,983.16
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2016
Business-type Activities
The Notes to Financial Statements are an Integral Part of This Statement.
Governmental
Activities
Sewer Fund Water Fund Solid Waste Fund Golf Course Fund
Indoor Sports
Complex Fund
Sporting Complexes
Fund
Total Enterprise
Funds
Internal Service
Funds
LIABILITIES
Current liabilities:
Accounts payable 518,774.58 226,030.08 450,975.75 16,500.71 - 70,121.17 1,282,402.29 90,322.67
Salaries and benefits payable 61,177.65 9,298.71 34,406.48 22,934.04 - 57,351.90 185,168.78 29,014.25
Interest payable 689,912.90 206,915.63 - - - - 896,828.53 -
Other liabilities 267,546.74 230,754.05 114,932.28 14,280.10 - - 627,513.17 -
Estimated claims payable - - - - - - - 678,500.00
Due to other governments 21,413.20 45,444.59 - - - - 66,857.79 -
Unearned revenues - - - 50,781.14 - 29,865.97 80,647.11 -
Current portion of long-term debt
Revenue bonds payable 5,354,375.80 570,000.00 5,924,375.80 -
Special oblig bonds payable 320,000.00 320,000.00 -
Total current liabilities 6,913,200.87 1,288,443.06 920,314.51 104,495.99 - 157,339.04 9,383,793.47 797,836.92
Noncurrent liabilities:
Net OPEB obligation 20,678.00 40,249.00 72,055.00 77,865.00 - 12,728.00 223,575.00 114,507.00
Net pension liabilities - - - - - 61,301.22 61,301.22 76,773.43
Compensated absences payable 66,647.28 8,115.53 53,865.28 25,047.72 - 28,317.94 181,993.75 54,550.25
Advances from other funds - - 470,161.27 35,914.23 - 45,850.78 551,926.28 -
Revenue bonds payable 69,090,099.75 11,028,703.49 - - - - 80,118,803.24 -
Special oblig bonds payable - - 3,274,646.04 - - - 3,274,646.04 -
Est landfill post closure cost - - 30,000.00 - - - 30,000.00 -
Total noncurrent liabilities 69,177,425.03 11,077,068.02 3,900,727.59 138,826.95 - 148,197.94 84,442,245.53 245,830.68
Total liabilities 76,090,625.90 12,365,511.08 4,821,042.10 243,322.94 - 305,536.98 93,826,039.00 1,043,667.60
NET POSITION
Invested in capital assets, net of related debt 43,358,483.66 32,499,436.48 1,285,218.13 1,265,622.79 1,335,100.00 1,939,595.53 81,683,456.59 1,776,800.24
Restricted for depreciation and replacement - 150,000.00 - - - - 150,000.00 -
Restricted for emergencies 1,728,590.00 907,962.00 436,698.00 - - - 3,073,250.00 -
Unrestricted 7,734,437.52 6,894,360.23 1,296,896.48 (4,378.43) - 14,781.54 15,936,097.34 5,649,091.18
Total net position $ 52,821,511.18 $ 40,451,758.71 $ 3,018,812.61 $ 1,261,244.36 $ 1,335,100.00 $ 1,954,377.07 100,842,803.93 $ 7,425,891.42
- - - - 723,123.43 -
$ 101,565,927.36
Business-type Activities
Difference between business-type adjustments to assets and liabilities.
Net position of business-type activities.
The Notes to Financial Statements are an Integral Part of This Statement.
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2016
Governmental
Activities
Sewer Fund Water Fund Solid Waste Fund Golf Course Fund
Indoor Sports Complex
Fund
Sporting Complexes
Fund Total Enterprise Funds Internal Service Funds
OPERATING REVENUES
Residential charges $ 4,508,174.01 $ 3,765,899.97 $ 2,482,930.64 $ - $ - $ - $ 10,757,004.62 $ -
Commerical charges 2,479,471.12 2,518,048.02 40,485.10 - - - 5,038,004.24 -
Transfer station charges - - 814,950.62 - - - 814,950.62 -
Other fees and charges 125,096.14 233,765.17 71,274.77 - - - 430,136.08 17,576.29
Concession revenues - - - 40,900.74 - 62,589.49 103,490.23 -
Internal charges 20,719.09 - - - - - 20,719.09 6,899,576.84
Usage fees - - - 488,628.00 - 327,144.80 815,772.80 -
Miscellaneous 2,748.89 28,201.16 37,781.68 778.39 - 7,516.47 77,026.59 1,043.64
Total operating revenues 7,136,209.25 6,545,914.32 3,447,422.81 530,307.13 - 397,250.76 18,057,104.27 6,918,196.77
OPERATING EXPENSES
Personnel services 1,909,476.64 257,590.31 1,156,172.19 401,779.98 - 648,318.60 4,373,337.72 1,037,973.83
Materials & supplies 810,089.61 1,072,393.83 215,465.61 115,361.20 - 188,753.45 2,402,063.70 626,174.45
Contractual services 957,472.69 2,912,056.80 1,087,877.25 29,192.52 - 53,579.37 5,040,178.63 5,297,149.33
General operating expenses 541,851.22 396,550.48 69,673.27 2,449.98 - 2,417.30 1,012,942.25 57,845.09
Special programs 127,898.02 354,057.02 73,986.48 2,971.06 - 83,795.84 642,708.42 933.92
Internal service expenses 176,763.79 176,732.49 453,467.42 46,349.78 - 37,089.95 890,403.43 6,852.00
Depreciation 4,044,083.30 1,676,418.61 251,137.37 104,680.57 - 164,660.11 6,240,979.96 417,689.32
Total operating expenses 8,567,635.27 6,845,799.54 3,307,779.59 702,785.09 - 1,178,614.62 20,602,614.11 7,444,617.94
Operating income (loss) (1,431,426.02) (299,885.22) 139,643.22 (172,477.96) - (781,363.86) (2,545,509.84) (526,421.17)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 59,636.34 7,692.30 38,340.21 - - 225.00 105,893.85 4,708.81
Investment revenue 124,067.41 83,762.51 29,908.61 1,234.87 - 1,552.76 240,526.16 92,244.43
Gain from sale of asset 16,479.05 23,510.70 7,608.13 13,600.28 - - 61,198.16 19,952.96
Loss on sale of asset - - (10,266.82) - - - (10,266.82) -
Interest and other charges (1,831,812.95) (394,358.68) (109,172.84) (3,082.88) - (3,093.90) (2,341,521.25) -
Issuance costs - - (58,750.63) - - - (58,750.63) -
Total nonoperating revenues (expenses) (1,631,630.15) (279,393.17) (102,333.34) 11,752.27 - (1,316.14) (2,002,920.53) 116,906.20
Income (loss) before contributions and transfers (3,063,056.17) (579,278.39) 37,309.88 (160,725.69) - (782,680.00) (4,548,430.37) (409,514.97)
Contributed cap - connect fee 109,578.64 - - - - - 109,578.64 -
Contributed cap - developers 978,077.15 487,910.49 - - - - 1,465,987.64 -
Contributed cap - donations - - - - 1,335,100.00 - 1,335,100.00 -
Contributed cap - government 41,367.86 3,617.79 - 131,166.41 - 67,055.22 243,207.28 -
Transfers in 4,744,274.40 3,084,593.69 846,500.00 95,044.30 - 573,737.54 9,344,149.93 3,900.00
Transfers out - - - - - - - (53,468.37)
Change in net position 2,810,241.88 2,996,843.58 883,809.88 65,485.02 1,335,100.00 (141,887.24) 7,949,593.12 (459,083.34)
Total net position - beginning 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
Prior period adjustments 319,138.96 216,907.96 - - - - 536,046.92 -
Total net position - ending $ 52,821,511.18 $ 40,451,758.71 $ 3,018,812.61 $ 1,261,244.36 $ 1,335,100.00 $ 1,954,377.07 $ 100,842,803.93 $ 7,425,891.42
(112,641.85)
Change in net position of business-type activities 7,836,951.27$
Business-type Activities
The notes to financial statements are an integral part of this statement.
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds
City of Cape Girardeau
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2016
Government
Total Activities
Sporting Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complexes Funds Funds
$ 7,032,090.49 $ 6,708,204.15 $ 3,422,505.59 $ 601,324.70 $ 518,073.38 $ 18,282,198.31 $ 95,469.31
20,719.09 - 40,485.10 - - 61,204.19 6,821,683.82
- - - - 7,259.67 7,259.67 (6,192.56)
(1,980,964.90) (4,883,630.40) (1,303,134.50) (210,470.11) (410,162.76) (8,788,362.67) (5,661,693.28)
(1,760,213.05) (237,330.83) (1,078,064.79) (365,442.08) (600,602.27) (4,041,653.02) (928,580.66)
(192,100.03) (177,232.49) (453,431.31) (46,349.78) (37,089.95) (906,203.56) (6,852.00)
(354,302.42) (324,287.96) - - - (678,590.38) -
(19,198.33) (269,470.28) - - - (288,668.61) -
- 2,746,030.85 816,252.19 628,360.09 (20,937.27) (522,521.93) 3,647,183.93 313,834.63
309,436.00 - - 95,044.30 566,737.54 971,217.84 -
- - - - - - (41,342.77)
Advance repayment to other funds - - (506,508.73) (34,183.68) (21,282.01) (561,974.42) -
Advance from other funds - - 488,335.00 - - 488,335.00 -
- - (14,650.05) (3,082.88) (3,093.90) (20,826.83) -
48,640.39 541.73 4,475.78 - 187.50 53,845.40 2,839.31
- - 29,719.50 - - 29,719.50 -
358,076.39 541.73 1,371.50 57,777.74 542,549.13 960,316.49 (38,503.46)
- - - - - - - 110,778.03 384.04 - - - 111,162.07 -
Federal grants 211.88 5,828.49 - - - 6,040.37 296.63
Principal received on promissory note - - - - - - 16,144.53
Interest received on promissory note - - - - - - 3,292.50
42,366.25 23,923.33 48,033.13 13,600.28 7,000.00 134,922.99 26,986.88
4,891,313.56 - 3,206,772.40 - - 8,098,085.96 -
(359,888.54) (314,801.94) (238,693.75) - - (913,384.23) (412,306.83)
(7,144,592.65) (2,620,846.25) (3,327,672.01) - - (13,093,110.91) -
(4,511,843.65) (555,000.00) (175,000.00) - - (5,241,843.65) -
(2,481,126.06) (408,281.26) (92,187.15) - - (2,981,594.47) -
Issuance costs of capital debt - - (58,750.63) - - (58,750.63) -
6,612.80 3,084,593.69 846,500.00 - - 3,937,706.49 3,900.00
- - - - - - (12,125.60)
4,420,000.00 - - - - 4,420,000.00 -
(5,026,168.38) (784,199.90) 209,001.99 13,600.28 7,000.00 (5,580,766.01) (373,811.89)
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 federal 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, 2016
Business-type Activities - Enterprise Funds
Payments made in lieu of franchise taxes
Transfers to other funds
Interest paid to other funds
Subsidy from local grant
Net cash provided (used) by operating activities
Net cash (used) by noncapital financing
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
See Accompanying Notes to Basic Financial Statements.
Government
Total Activities
Sporting Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complexes Funds Funds
112,986.34 59,162.68 24,199.00 724.09 836.71 197,908.82 69,707.04
1,885,312.15 (91,756.70) (862,932.58) (51,164.84) (27,863.91) 851,594.12 27,436.03
1,998,298.49 (32,594.02) (838,733.58) (50,440.75) (27,027.20) 1,049,502.94 97,143.07
76,237.35 - - - - 76,237.35 (1,337.65)
5,903,024.22 - - - - 5,903,024.22 14,850.39
Prior period adjustment - - - - - - - $ 5,979,261.57 $ - $ - $ - $ - $ 5,979,261.57 $ 13,512.74
$ (1,431,426.02) $ (299,885.22) $ 139,643.22 $ (172,477.96) $ (781,363.86) $ (2,545,509.84) $ (526,421.17)
Depreciation expense 4,044,083.30 1,676,418.61 251,137.37 104,680.57 164,660.11 6,240,979.96 417,689.32
4,942.88 (766,243.95) 80,468.61 (2,362.82) 26,646.75 (656,548.53) 318,558.55
(10,463.04) 10,256.22 4,628.26 3,705.21 16,767.18 24,893.83 -
15,514.03 39.85 (6,552.65) 13,209.41 17,269.22 39,479.86 31,942.15
Customer receivables (14,291.01) (65,053.72) 70,041.26 (1,088.00) (362.36) (10,753.83) -
Interfund receivables - - - - - - (6,962.29)
- - - - - - (273.91)
Prepaid expenses 3,921.15 4,146.97 4,333.97 (96.32) 2,335.35 14,641.12 7,247.16
Pension asset/liability 133,749.56 20,219.63 84,660.05 23,128.49 30,447.11 292,204.84 77,451.02
Inventory - 236,353.80 - (531.13) (356.92) 235,465.75 (5,396.20)
Unearned revenue - - - 10,895.28 1,435.49 12,330.77
$ 2,746,030.85 $ 816,252.19 $ 628,360.09 $ (20,937.27) $ (522,521.93) $ 3,647,183.93 $ 313,834.63
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, 2016
Proprietary Funds
Business-type Activities - Enterprise Funds
Net change in pooled investments
City of Cape Girardeau
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Agency funds
ASSETS
Pooled cash and investments $ 1,447,374.89
Cash and cash equivalents 700.56
Investments 198,000.00
Prepaid items 16,256.08
Real estate taxes 105,386.53
Property taxes 26,705.23
Grants 48,378.33
Other 1.50
Total assets $ 1,842,803.12
LIABILITIES
Deferred revenues $ 127,260.95
Accounts payable 22,438.80
Salaries and benefits payable 24,718.76
Other liabilities 1,668,384.61
Total liabilities $ 1,842,803.12
City of Cape Girardeau
Statement of Fiduciary Net Position
June 30, 2016
See Accompanying Notes to Basic Financial Statements.
37
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Cape Girardeau, Missouri (the City) operates under a charter, which went into effect April
12, 1982. The City operates under a Council-Manager form of government and provides the following
services as authorized by its charter: public safety (police and fire), highways and streets, water,
sanitation, health and social services, culture-recreation, public improvement, planning and zoning, and
general administrative services.
The financial statements of the City have been prepared in conformity with generally accepted accounting
principles (GAAP), as applied to government units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and financial
reporting principles. The more significant accounting policies of the City are described below.
1. Reporting Entity
In evaluating how to define the City, for financial reporting purposes, management has considered all
potential component units. Generally, component units are legally separate organizations for which the
elected officials of the City are financially accountable. The Cape Girardeau (Missouri) Public Facilities
Authority (CGPFA) is a blended component unit of the City. The financial statements of the CGPFA are
included in the accompanying financial statements of the City. The Cape Girardeau Municipal
Development Foundation (CGMDF), the Cape Girardeau Public Safety Foundation (CGPSF), and the
Cape Girardeau Parks Development Foundation (CGPDF) are also component units of the City. The
financial statements of these foundations are included as special revenue funds in the accompanying
financial statements.
The CGPFA is a not-for-profit corporation organized and existing under Chapter 355 of the Revised
Statutes of Missouri. The CGPFA board of directors consists of City officials and City Council members.
Due to the significant City influence and financial accountability, the activities of the 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 entered into a Lease Purchase Agreement
with the City from which the lease payments were used solely to retire the debt. The debt was retired
during the current year.
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.
38
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
2. Government-Wide and Fund Financial Statements
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.
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. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment 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 the City of Cape
39
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued
Girardeau, Missouri payment is due. Those revenues susceptible to accrual are property taxes, franchise
taxes, special assessments, licenses, interest revenue, and charges for services. Sales taxes collected and
held by the state at year-end on behalf of the City, also are recognized as revenue. Fines and permit
revenues are not susceptible to accrual because, generally, they are not measurable until received in cash.
With the current financial resources measurement focus, only current assets and current liabilities are
generally included on the balance sheet.
The City reports the following major governmental funds:
The general fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The airport 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 parks/stormwater sales tax – capital fund accounts for the receipt and expenditure of a capital
improvement sales tax that was approved by voters for parks and recreation capital project and
equipment expenditures and stormwater capital project expenditures.
The general capital improvements fund accounts for major capital improvement projects, funded
through local revenue sources and/or bond proceeds, involving general public facilities.
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.
40
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued
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.
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.
41
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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 assigned 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.
42
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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, 2016 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.
43
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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 are projected by discounting future
expected cash flows at 6%. An allowance for bad debt has been established for the difference between
the actual future expected cash flows due and the discounted value of these future cash flows.
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 equal to interfund
loan receivables are reported as non-spendable on the governmental balance sheet 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.
44
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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 ab out 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.
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 retired from the City prior to April 1,
2012 with five or more years of service and who were eligible for LAGERS retirement (Note G) or after
April 1, 2012 after reaching their normal retirement ages through LAGERS with five or more years of
service. Currently, fifty-two retirees and twenty-seven 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, 2016, those costs
totaled $715,254.99.
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
four retiree spouses participating in the health and dental insurance programs as of June 30, 2016.
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, 2016, all infrastructures completed during the fiscal year, including
projects started in a previous year, were recorded at their historical costs.
45
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
20. Subsequent Events
In preparing these financial statements, the City has evaluated events and transactions for potential
recognition or disclosure through February 13, 2017, the date the financial statements were available to
be issued.
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, 2016, and reported at fair value, are as follows:
Deposits:
Demand Deposits $ 14,982.50
Interest Bearing Deposit Accounts 9,929,210.98
Total Deposits $ 9,944,193.48
Investments:
Negotiable Instruments $72,535,588.76
Federal National Mortgage Assn 1,466,730.70
Federal Home Loan Mortgage Corp 1,986,901.55
Total Investments $75,989,221.01
Accrued Interest Revenue $ 108,839.42
Total Pooled Deposits and Investments $86,042,253.91
As of June 30, 2016, the City had the following pooled investments:
Investments Maturities Fair Value
Negotiable Instruments 07/06/16 – 06/07/21 $72,535,588.76
Federal National Mortgage Assoc. 05/15/17 – 11/27/18 1,466,730.70
Federal Home Loan Mort. Corp. 02/22/18 – 06/16/21 1,986,901.55
Total $75,989,221.01
46
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE B - DEPOSITS AND INVESTMENTS - continued
Reconciliation of Pooled Cash and Investments to Statements:
Governmental Pooled Cash and Investments $72,834,916.30
Business-type Pooled Cash and Investments 11,759,962.72
Fiduciary Pooled Cash and Investments 1,447,374.89
Total Pooled Cash and Investments $86,042,253.91
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, 2016, and reported at fair value, are as follows:
Deposits:
Demand Deposits $ 409,863.04
Interest Bearing Deposit Accounts 5,650,500.15
Total Deposits $ 6,060,363.19
Investments:
Negotiable Instruments $ 198,000.00
U.S. Treasury Note 350,765.63
Total Investments $ 548,765.63
Total Non-Pooled Deposits and Investments $ 6,609,128.82
As of June 30, 2016, the City had the following non-pooled investments
Negotiable Instruments 04/12/17– 04/12/17 $198,000.00
U. S. Treasury Note 11/30/16– 11/30/16 350,765.63
Total $548,765.63
Reconciliation of Non-Pooled Deposits and Investments to Statements:
Governmental Cash and Cash Equivalents $ 80,401.06
Governmental Investments 350,765.63
Business-type Restricted Cash and Cash Equivalents 5,979,261.57
Fiduciary Cash and Cash Equivalents 198,700.56
Total Non-Pooled Deposits and Investments $6,609,128.82
Custodial Credit Risk:
Deposits in financial institutions, reported as components of cash, cash equivalents, and investments,
had a bank balance of $93,117,537.79 at June 30, 2016, 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.
47
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE B - DEPOSITS AND INVESTMENTS - continued
Investment Interest Rate Risk
The City’s investment policy states that “Market price volatility shall be controlled by matching the
City’s investments with anticipated cash flow requirements. The City will not directly invest in
securities maturing more than seven years.” The maturities of investments held at June 30, 2016 are
provided above.
Investment Credit Risk
The City has an investment policy that limits its investment choices as follows:
a. Direct obligations of the U.S. Government, its agencies and instrumentalities to which
the full faith and credit of the U.S. Government is pledged, or obligations to the
payment of which the full faith and credit of the State is pledged;
b. Certificates of deposit or savings accounts that are either insured or secured with
acceptable collateral with in-state financial institutions, and fully insured certificates
of deposit or savings accounts in out-of-state financial institutions;
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, 2016, the City
had no concentration of credit risk.
48
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE C - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August
13, 2015, 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 .6866/100.00 assessed valuation
#2 (Ad Valorem)
Property tax receivable balances as of June 30, 2016 are as follows:
Special
General Public Business
Revenue Health District Total
Current property tax $ 77,243.94 $ 14,468.88 $ 328.74 $ 92,041.56
Delinquent property tax 62,221.68 11,654.88 328.89 74,205.45
Reserve for doubtful
Property taxes (7,284.91) (1,364.57) - (8,649.48)
Net property tax receivable
$132,180.71 $ 24,759.19 $ 657.63 $157,597.53
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, 2016 is as follows:
Balance Current Year Balance
July 1, 2015 Additions Deductions Depreciation* June 30, 2016**
Land
$10,117,070.83 $ 19,110.32 $ 423,442.04 $ - $ 9,712,739.11
Buildings 20,589,455.03 327,230.98 - 1,001,012.46 19,915,673.55
Land improvements 19,411,780.52 - - 894,853.43 18,516,927.09
Equipment 5,851,220.69 2,783,155.71 18,859.71 1,420,164.94 7,195,351.75
Infrastructure 119,667,592.25 6,583,650.15 - 4,730,708.23 121,520,534.17
Construction in progress 6,646,861.41 10,557,867.26 8,610,897.30 - 8,593,831.37
Total capital assets $182,283,980.73 $20,271,014.42 $ 9,053,199.05 $8,046,739.06 $ 185,455,057.04
* 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.
49
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE D - CHANGES IN CAPITAL ASSETS – Continued
The 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, 2016:
Balance Current Year Balance
July 1, 2015 Additions Deductions Depreciation June 30, 2016
Land $ 649,917.54 $ 1,335,100.00 $ - $ - $ 1,985,017.54
Buildings 1,984,568.59 3,942,316.71 - 300,456.25 5,626,429.05
Improvements other
than buildings 152,069,859.54 5,591,550.16 - 5,230,586.05 152,430,823.65
Equipment 3,906,471.15 1,246,630.91 200,953.06 709,937.66 4,242,211.34
Construction in progress 4,089,883.22 9,059,275.18 5,650,437.65 - 7,498,720.75
Total capital assets $162,700,700.04 $21,174,872.96 $ 5,851,390.71 $ 6,240,979.96 $ 171,783,202.33
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrative $ 544,428.06
Development Services 65,202.18
Parks and Recreation 979,044.01
Public Safety 716,043.70
Public Works 5,700,824.80
Total $ 8,005,542.75
Business-Type Activities:
Golf Course $ 104,680.57
Sewer 4,044,083.30
Sporting Complexes 164,660.11
Solid Waste 251,137.37
Water 1,676,418.61
Total $ 6,240,979.96
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, 2016:
Governmental
Activities
Other
Debt*
Revenue
Bonds
Total
Debt payable July 1, 2015 $ 13,461,337.68 $ 806,300.00 $14,267,637.68
Discount/Premium
Amortization
(74,651.08) - (74,651.08)
Retired (10,225,032.84) (45,700.00) (10,270,732.84)
Issued 36,303,329.80 - 36,303,329.80
Debt payable June 30, 2016 $ 39,464,983.56 $ 760,600.00 $ 40,225,583.56
*Other Debt includes Notes Payable, Special Obligation Bonds, Leasehold Revenue Bonds, and Certificates of Participation.
50
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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, 2016:
Business-Type Other Revenue
Activities Debt*Bonds Total
Debt payable July 1, 2015 560,538.00$ 86,860,158.40$ 87,420,696.40$
Discount/Premium
Amortization 2,335.64 (16,131.50) (13,795.86)
Accumulated Interest - 80,838.58 80,838.58
Retired (175,000.00) (5,773,000.00) (5,948,000.00)
Issued 3,206,772.40 4,891,313.56 8,098,085.96
Debt payable June 30, 2016 3,594,646.04$ 86,043,179.04$ 89,637,825.08$
*Other Debt includes Special Obligation Bonds
Bonds payable for governmental and business-type activities at June 30, 2016 are comprised of the
following individual issues:
51
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS – Continued
$259,535.25 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
2017 6.250% $259,535.25 $715,464.75 $975,000.00
$259,535.25 $715,464.75 $975,000.00
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,
2016 was $181,674.64. The reserve fund yields 5.83%.
52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$ 2,830,000.00 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1996 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2017 5.900% $ 920,000.00 $150,450.00 $1,070,450.00
2018 5.900% 945,000.00 99,705.00 1,044,705.00
2019 5.900% 965,000.00 42,705.00 1,007,705.00
$2,830,000.00 $292,860.00 $3,122,860.00
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, 2016 was $1,981,000. 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, 201 6, City interest
expense was reduced by $13,040.00 as a result of this transaction. Over the remaining life of these bonds,
the City will receive net present value benefits of approximately $41,296.69 from this transaction.
53
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$ 6,010,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2017 5.625% $ 555,000.00 $312,036.88 $ 867,036.88
2018 5.300% 590,000.00 280,792.50 870,792.50
2019 5.400% 1,590,000.00 222,227.50 1,812,227.50
2020 5.450% 1,655,000.00 134,198.75 1,789,198.75
2021 5.500% 1,620,000.00 44,550.00 1,664,550.00
$6,010,000.00 $993,805.63 $7,003,805.63
These bonds are dated November 1, 2000. The proceeds of the bond issue were used to extend and
improve the existing sewerage facilities serving the City.
Principal payments are made annually on July 1, and interest payments are made semi-annually on July
1 and January 1.
The interest due on the Series 2000, Sewer System Revenue Bonds is subsidized by interest earnings on
a reserve fund held by the bond issue’s trustee. As the City is reimbursed for sewer project expenditures
from the construction funds held by the trustee, the State of Missouri Department of Natural Resources
deposits an amount equal to approximately 70% of the reimbursement into the reserve fund. The
maximum amount of funds that will be advanced to the reserve fund will be $5,848,500. As bonds are
retired 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, 2016 was $4,207,000.
The reserve fund yields 5.16%.
54
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
Special Obligation Bonds, Series 2005:
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 were 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.
The remaining principle balance of $1,120,000 was repaid during the current year. Proceeds from the
issuance of $985,000 in Special Obligation Bonds, Series 2015B and $135,000 in debt service reserves
from the 2005 Special Obligation Bonds were used to repay the bonds.
Leasehold Revenue Bonds, Series 2009:
The bonds were obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The
CGPFA had entered into a Lease Purchase Agreement with the City. Principal and interest were paid by
CGPFA from rental and other receipts from the City. Proceeds of the 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 remaining principle balance of $8,315,000 was repaid during the current year. Proceeds from the
issuance of $6,155,000 in Special Obligation Bonds, Series 2016 were used to repay $6,165,000 of the
Leasehold Revenue Bonds, Series 2009.
55
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$385,000 Special Obligation Bonds, Series 2010A due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2017 3.000% $185,000.00 $12,300.00 $197,300.00
2018 3.375% 200,000.00 6,750.00 206,750.00
$385,000.00 $19,050.00 $404,050.00
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.
56
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$760,600.00 Waterworks Revenue Bonds, Series 2010 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Admin Fee
Due
Total
2017 1.4900% $ 46,800.00 $11,159.36 $ 3,627.75 $ 61,587.11
2018 1.4900% 47,900.00 10,458.31 3,389.75 61,748.06
2019 1.4900% 48,900.00 9,740.98 3,146.50 61,787.48
2020 1.4900% 50,100.00 9,007.80 2,897.50 62,005.30
2021 1.4900% 51,100.00 8,257.59 2,643.25 62,000.84
2022 1.4900% 52,300.00 7,491.72 2,383.25 62,174.97
2023 1.4900% 53,500.00 6,707.99 2,117.25 62,325.24
2024 1.4900% 54,700.00 5,906.36 1,845.25 62,451.61
2025 1.4900% 55,900.00 5,086.87 1,567.25 62,554.12
2026 1.4900% 57,200.00 4,249.48 1,283.00 62,732.48
2027 1.4900% 58,500.00 3,391.99 992.00 62,883.99
2028 1.4900% 59,900.00 2,515.13 694.25 63,109.38
2029 1.4900% 61,200.00 1,618.14 390.00 63,208.14
2030 1.4900% 62,600.00 701.05 78.75 63,379.80
$760,600.00 $86,292.77 $27,055.75 $873,948.52
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.
57
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$11,665,000.00 Waterworks System Refunding Revenue Bonds Series 2012A due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2017 3.000% $ 570,000.00 $ 402,731.26 $ 972,731.26
2018 3.000% 585,000.00 385,631.26 970,631.26
2019 3.000% 605,000.00 368,081.26 973,081.26
2020 4.000% 620,000.00 349,931.26 969,931.26
2021 3.000% 645,000.00 325,131.26 970,131.26
2022 3.000% 665,000.00 305,781.26 970,781.26
2023 3.000% 685,000.00 285,831.26 970,831.26
2024 3.125% 705,000.00 265,281.26 970,281.26
2025 3.250% 725,000.00 243,250.00 968,250.00
2026 3.375% 750,000.00 219,687.50 969,687.50
2027 3.500% 775,000.00 194,375.00 969,375.00
2028 3.625% 805,000.00 167,250.00 972,250.00
2029 3.625% 835,000.00 138,068.76 973,068.76
2030 4.000% 865,000.00 107,800.00 972,800.00
2031 4.000% 895,000.00 73,200.00 968,200.00
2032 4.000% 935,000.00 37,400.00 972,400.00
$11,665,000.00 $3,869,431.34 $15,534,431.34
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.
58
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$29,744,000.00 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
2017 1.430% $1,288,000.00 $ 420,763.20 $ 294,240.00 $2,003,003.20
2018 1.430% 1,319,000.00 402,237.55 281,285.00 2,002,522.55
2019 1.430% 1,352,000.00 383,254.30 268,010.00 2,003,264.30
2020 1.430% 1,385,000.00 363,806.30 254,410.00 2,003,216.30
2021 1.430% 1,419,000.00 343,879.25 240,475.00 2,003,354.25
2022 1.430% 1,455,000.00 323,458.85 226,195.00 2,004,653.85
2023 1.430% 1,491,000.00 302,523.65 211,555.00 2,005,078.65
2024 1.430% 1,527,000.00 281,073.65 196,555.00 2,004,628.65
2025 1.430% 1,565,000.00 259,101.70 181,190.00 2,005,291.70
2026 1.430% 1,604,000.00 236,586.35 165,445.00 2,006,031.35
2027 1.430% 1,644,000.00 213,506.15 149,305.00 2,006,811.15
2028 1.430% 1,684,000.00 189,853.95 132,765.00 2,006,618.95
2029 1.430% 1,726,000.00 165,622.60 115,820.00 2,007,442.60
2030 1.430% 1,769,000.00 140,790.65 98,455.00 2,008,245.65
2031 1.430% 1,813,000.00 115,336.65 80,655.00 2,008,991.65
2032 1.430% 1,857,000.00 89,253.45 62,415.00 2,008,668.45
2033 1.430% 1,904,000.00 62,533.90 43,730.00 2,010,263.90
2034 1.430% 1,950,000.00 35,142.25 24,575.00 2,009,717.25
2035 1.430% 992,000.00 7,092.80 4,960.00 1,004,052.80
$29,744,000.00 $4,335,817.20 $ 3,032,040.00 $37,111,857.20
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 were 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, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$3,116,000.00 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
2017 1.390% $ 137,000.00 $ 42,839.80 $ 30,820.00 $ 210,659.80
2018 1.390% 140,000.00 40,921.60 29,440.00 210,361.60
2019 1.390% 143,000.00 38,968.65 28,035.00 210,003.65
2020 1.390% 147,000.00 36,967.05 26,595.00 210,562.05
2021 1.390% 150,000.00 34,909.85 25,115.00 210,024.85
2022 1.390% 153,000.00 32,817.90 23,610.00 209,427.90
2023 1.390% 157,000.00 30,677.30 22,070.00 209,747.30
2024 1.390% 161,000.00 28,481.10 20,490.00 209,971.10
2025 1.390% 165,000.00 26,229.30 18,870.00 210,099.30
2026 1.390% 169,000.00 23,921.90 17,210.00 210,131.90
2027 1.390% 173,000.00 21,558.90 15,510.00 210,068.90
2028 1.390% 177,000.00 19,140.30 13,770.00 209,910.30
2029 1.390% 181,000.00 16,666.10 11,990.00 209,656.10
2030 1.390% 185,000.00 14,136.30 10,170.00 209,306.30
2031 1.390% 189,000.00 11,550.90 8,310.00 208,860.90
2032 1.390% 193,000.00 8,909.90 6,410.00 208,319.90
2033 1.390% 197,000.00 6,213.30 4,470.00 207,683.30
2034 1.390% 202,000.00 3,461.10 2,490.00 207,951.10
2035 1.390% 97,000.00 674.15 485.00 98,159.15
$3,116,000.00 $439,045.40 $315,860.00 $ 3,870,905.40
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 were 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.
60
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$34,277,000.00 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
2017 1.390% $1,507,000.00 $ 448,023.93 $ 339,025.00 $ 2,294,048.93
2018 1.390% 1,541,000.00 450,179.30 323,870.00 2,315,049.30
2019 1.390% 1,577,000.00 428,634.30 308,370.00 2,314,004.30
2020 1.390% 1,613,000.00 406,588.90 292,510.00 2,312,098.90
2021 1.390% 1,651,000.00 384,036.15 276,285.00 2,311,321.15
2022 1.390% 1,689,000.00 360,955.20 259,680.00 2,309,635.20
2023 1.390% 1,728,000.00 337,346.05 242,695.00 2,308,041.05
2024 1.390% 1,768,000.00 313,187.85 225,315.00 2,306,502.85
2025 1.390% 1,808,000.00 288,473.65 207,535.00 2,304,008.65
2026 1.390% 1,850,000.00 263,196.50 189,350.00 2,302,546.50
2027 1.390% 1,893,000.00 237,335.55 170,745.00 2,301,080.55
2028 1.390% 1,935,000.00 210,876.90 151,710.00 2,297,586.90
2029 1.390% 1,981,000.00 183,820.55 132,245.00 2,297,065.55
2030 1.390% 2,026,000.00 156,131.75 112,325.00 2,294,456.75
2031 1.390% 2,072,000.00 127,810.50 91,950.00 2,291,760.50
2032 1.390% 2,120,000.00 98,842.90 71,110.00 2,289,952.90
2033 1.390% 2,169,000.00 69,208.10 49,790.00 2,287,998.10
2034 1.390% 2,219,000.00 38,885.25 27,975.00 2,285,860.25
2035 1.390% 1,130,000.00 7,853.50 5,650.00 1,143,503.50
$34,277,000.00 $ 4,811,386.83 $ 3,478,135.00 $42,566,521.83
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, 2016 $33,265,450.75 of this loan had been disbursed.
The proceeds of the bond issue were and will be used to acquire, construct, extend and improve the
existing sewerage system.
Principal payments are made annually on July 1; while interest payments are made semi-annually on
January 1 and July 1.
61
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$3,619,900.82 Business Park Land Purchase Loan due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2017 3.26% $ 359,454.03 $100,545.97 $ 460,000.00
2018 3.26% 369,685.62 90,314.38 460,000.00
2019 3.26% 379,925.92 80,074.08 460,000.00
2020 3.26% 390,449.86 69,550.14 460,000.00
2021 3.26% 401,104.41 58,895.59 460,000.00
2022 3.26% 412,375.92 47,624.08 460,000.00
2023 3.26% 423,798.73 36,201.27 460,000.00
2024 3.26% 435,537.95 24,462.05 460,000.00
2025 3.26% 447,568.38 12,431.62 460,000.00
$3,619,900.82 $520,099.18 $4,140,000.00
On February 4, 2013, the City entered into an agreement with the Southeast Missouri State University
Foundation for the purchase of approximately 247.43 acres located on the east side of Interstate 55
along LaSalle Street for the purpose of creating a business park.
The total purchase price was $6,000,000 with $480,000 paid at the time of closing and twelve (12)
annual payments of $460,000 commencing 12 months from the closing date of the sale.
62
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$9,185,000.00 Special Obligation Bonds, Series 2015A due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2017 2.500% $ 545,000.00 $ 264,460.00 $ 809,460.00
2018 2.500% 550,000.00 250,835.00 800,835.00
2019 2.500% 565,000.00 237,085.00 802,085.00
2020 2.500% 600,000.00 222,960.00 822,960.00
2021 2.500% 625,000.00 207,960.00 832,960.00
2022 2.500% 655,000.00 192,335.00 847,335.00
2023 2.500% 670,000.00 175,960.00 845,960.00
2024 2.750% 695,000.00 159,210.00 854,210.00
2025 3.000% 720,000.00 140,097.50 860,097.50
2026 3.000% 330,000.00 118,497.50 448,497.50
2027 3.000% 340,000.00 108,597.50 448,597.50
2028 3.125% 355,000.00 98,397.50 453,397.50
2029 3.250% 365,000.00 87,303.76 452,303.76
2030 3.350 % 370,000.00 75,441.26 445,441.26
2031 3.375% 360,000.00 63,046.26 423,046.26
2032 3.500% 345,000.00 50,896.26 395,896.26
2033 3.500% 355,000.00 38,821.26 393,821.26
2034 3.500% 365,000.00 26,396.26 391,396.26
2035 3.625% 265,000.00 13,621.26 278,621.26
2036 3.650% 110,000.00 4,015.00 114,015.00
$9,185,000.00 $2,535,936.32 $11,720,936.32
Principal payments are made annually on June 1, and interest payments are made semi-annually on June
1 and December 1.
In August 2015, the City of Cape Girardeau issued $9,625,000.00 of Special Obligation Bonds, Series
2015 with the interest rates varying from 2.500% to 3.625%. 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; construct a new transfer station; renovate and improve existing fire and police stations;
renovate and expand a new police station; acquire vehicles for the fire department; and construct an
indoor sports complex, (b) fund capitalized interest on the Bonds and, (c) 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.
63
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$985,000.00 Special Obligation Bonds, Series 2015B due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2017 2.000% $ 0.00 $19,700.00 $ 19,700.00
2018 2.000% 985,000.00 19,700.00 1,004,700.00
$985,000.00 $39,400.00 $1,024,400.00
Principal payments are made annually on June 1, and interest payments are made semi-annually on June
1 and December 1.
In August 2015, the City of Cape Girardeau issued $985,000.00 of Special Obligation Refunding Bonds,
Series 2015B. The Bonds were issued with an interest rate of 2.0%. The proceeds were used to refund
the outstanding Special Obligation Bonds, Series 2005.
The Special Obligation Bonds, Series 2005 were issued with a face amount of $8,190,000.00 bear interest
ranging from 3.0% to 5.0% and are due in varying amounts in annual installments due June 1 of each
year from 2005 to 2025. These bonds were defeased during the fiscal year ended June 30, 2016 with the
issuance of Special Obligation Refunding Bonds, Series 2015B and the use of debt service reserves on
the 2005 bonds. The net debt service savings from re-financing is $220,903.42 and the present value of
the net debt service savings is $182,528.12.
64
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$27,350,000.00 Special Obligation Bonds, Series 2016 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2017 2.000% $ 3,390,000.00 $ 691,296.14 $ 4,081,296.14
2018 2.000% 3,060,000.00 597,618.76 3,657,618.76
2019 2.000% 2,310,000.00 536,418.76 2,846,418.76
2020 2.000% 920,000.00 490,218.76 1,410,218.76
2021 2.000% 1,095,000.00 471,818.76 1,566,818.76
2022 2.000% 1,220,000.00 449,918.76 1,669,918.76
2023 2.000% 1,330,000.00 425,518.76 1,755,518.76
2024 2.000% 1,370,000.00 398,918.76 1,768,918.76
2025 2.000% 1,420,000.00 371,518.76 1,791,518.76
2026 2.000% 1,460,000.00 343,118.76 1,803,118.76
2027 2.125% 1,505,000.00 313,918.76 1,818,918.76
2028 3.000% 1,550,000.00 281,937.50 1,831,937.50
2029 4.000% 1,625,000.00 235,437.50 1,860,437.50
2030 4.000% 1,715,000.00 170,437.50 1,885,437.50
2031 3.000% 1,190,000.00 101,837.50 1,291,837.50
2032 3.000% 430,000.00 66,137.50 496,137.50
2033 3.000% 450,000.00 53,237.50 503,237.50
2034 3.000% 470,000.00 39,737.50 509,737.50
2035 3.000% 490,000.00 25,637.50 515,637.50
2036 3.125% 350,000.00 10,937.50 360,937.50
$27,350,000.00 $6,075,621.24 $33,425,621.24
Principal payments are made annually on June 1, and interest payments are made semi-annually on June
1 and December 1.
In May 2016, the City of Cape Girardeau issued $27,350,000.00 of Special Obligation Bonds, Series
2016 with interest rates varying from 2.000% to 4.000%. 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) refund all of the Leasehold
Revenue Bonds, Series 2009, (b) expanding, renovating, and equipping a building to serve as a new
police headquarters; constructing an indoor sports complex; constructing, furnishing, and equipping a
new fire station; and other capital improvement projects and, (c) 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.
65
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
$3,965,100.00 Note Payable – Direct Loan from Missouri Transportation Finance Corporation due as
follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2017 3.26% $ 432,962.64 $ 26,233.45 $ 459,196.09
2018 3.26% 344,048.41 115,147.68 459,196.09
2019 3.26% 355,264.39 103,931.70 459,196.09
2020 3.26% 366,846.01 92,350.08 459,196.09
2021 3.26% 378,584.94 80,611.15 459,196.09
2022 3.26% 391,147.06 68,049.03 459,196.09
2023 3.26% 403,898.45 55,297.64 459,196.09
2024 3.26% 417,065.54 42,130.55 459,196.09
2025 3.26% 430,583.70 28,612.39 459,196.09
2026 3.26% 444,698.86 14,497.18 459,196.04
$ 3,965,100.00 $ 626,860.85 $ 4,591,960.85
On November 2, 2015, the City entered into a direct loan agreement and promissory note with the
Missouri Transportation Finance Corporation and the Missouri Highways and Transportation
Commission. Disbursements of $700,000.00 and $3,265,100 are scheduled for December 1, 2015 and
August 1, 2016, respectively, under the agreement and are to be used to replace a bridge on South
Sprigg Street in the City of Cape Girardeau.
Principal and interest will be paid by the City from the revenues derived from annual appropriations by
the City Council. The City also granted to the Missouri Transportation Finance Corporation a security
interest in the applicable federal and state grant revenues associated with this project.
Annual principal and interest payments are required annually on September 1.
66
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
The annual requirements to amortize all debt outstanding as of June 30, 2016, including total interest
payments of $25,361,071.51 and total administrative fees of $6,853,090.75 are as follows:
Special
Year Ending Obligation Revenue Promissory
June 30, Bonds Bonds Note Total
2017 $5,107,756.14 $ 8,454,517.18 $ 919,196.09 $ 14,481,469.41
2018 5,669,903.76 7,475,810.27 919,196.09 14,064,910.12
2019 3,648,503.76 8,382,073.49 919,196.09 12,949,773.34
2020 2,233,178.76 7,347,012.56 919,196.09 10,499,387.41
2021 2,399,778.76 7,221,382.35 919,196.09 10,540,357.20
2022 2,517,253.76 5,556,673.18 919,196.09 8,993,123.03
2023 2,601,478.76 5,556,023.50 919,196.09 9,076,698.35
2024 2,623,128.76 5,553,835.47 919,196.09 9,096,160.32
2025 2,651,616.26 5,550,203.77 919,196.09 9,121,016.12
2026 2,251,616.26 5,551,129.73 459,196.04 8,261,942.03
2027 2,267,516.26 5,550,219.59 0.00 7,817,735.85
2028 2,285,335.00 5,549,475.53 0.00 7,834,810.53
2029 2,312,741.26 5,550,441.15 0.00 7,863,182.41
2030 2,330,878.76 5,548,188.50 0.00 7,879,067.26
2031 1,714,883.76 5,477,813.05 0.00 7,192,696.81
2032 892,033.76 5,479,341.25 0.00 6,371,375.01
2033 897,058.76 4,505,945.30 0.00 5,403,004.06
2034 901,133.76 4,503,528.60 0.00 5,404,662.36
2035 794,258.76 2,245,715.45 0.00 3,039,974.21
2036 474,952.50 0.00 0.00 474,952.50
$46,575,007.56 $111,059,329.92 $8,731,960.85 $166,366,298.33
The cash and investments available to service revenue bonds are $57,468.09 and $6,094,852.89 for the
governmental and business-type activities, respectively.
The cash and investments available to service the special obligation bonds are $89,204.53 and $11,982.20
in governmental activities and business-type activities, respectively.
67
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE E - LONG-TERM OBLIGATIONS - Continued
Interest expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Interest and Other Costs $ 1,049,438.04
Total $ 1,049,438.04
Business-Type Activities:
Golf Course $ 3,082.88
Sewer 1,831,812.95
Sporting Complexes 3,093.90
Solid Waste 109,172.84
Water 394,358.68
Total $ 2,341,521.25
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 $30,854,883.95.
NOTE F - DEFICIT FUND BALANCES/RETAINED EARNINGS
These following funds - Housing Development Grant, Storm Water System Improvements, and Park
System Improvements – had their total liabilities exceed their total assets by $44,576.03, $16,364.36, and
$54,253.23, 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.
68
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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, 2016, the following employees were covered by the benefits terms:
Retirees and Beneficiaries 243
Inactive, Non-retired Members 139
Active Members 358
Total 740
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 8.7% (General), 11.5% (Police) and
10.9% (Fire) of annual covered payroll during the current year.
The annual required contribution (ARC) was determined as part of the February 28, 2015 annual actuarial
valuation using the entry age actuarial cost method.
69
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE G - PENSION PLAN – Continued
5. Net Pension Asset
The City’s net pension asset was measured as of June 30, 2016, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of February 29, 2016.
6. Actuarial Assumptions
The total pension liability in the February 29, 2016 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.25% wage inflation, 2.50% price inflation
Salary Increase 3.25% to 6.55% including wage inflation
Investment Rate of Return 7.25% net of investment expenses
The healthy retiree mortality tables, for post-retirement mortality, were the RP-2014 Healthy Annuitant
mortality table for males and females. The disabled retiree mortality tables, for post-retirement mortality,
were the RP-2014 disabled mortality table for males and females. The pre-retirement mortality tables
used were the RP-2014 employees’ mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for mortality improvement back to the
observation period base year of 2006. The base year for males was the established to be 2017. Mortality
rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale
to the above described tables.
The actuarial assumptions used in the February 29, 2016 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:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Equity 43.00% 5.29%
Fixed Income 26.00% 2.23%
Real Assets 21.00% 3.31%
Strategic Assets 10.00% 5.73%
70
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE G - PENSION PLAN – Continued
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.
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 6/30/2015 $77,255,912 $68,916,386 $ 8,339,526
Changes for the year:
Service Cost - 1,480,688 (1,480,688)
Interest - 4,931,632 (4,931,632)
Difference between expected and actual experience - 93 193,422 (193,422)
Contributions – employer 1,533,180 - 1,533,180
Net investment income (169,035) - (169,035)
Benefit payments, including refunds (3,300,254) (3,300,254) -
Administrative expense (59,309) - (59,309)
Other changes (229,464) 2,379,491 (2,608,955)
Net changes (2,224,882) 5,684,979 (7,909,861)
Balances at 6/30/2016 $ 75,031,030 $ 74,601,365 $ 429,665
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%
$(10,242,499) $429,665 $9,201,450
71
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE G - PENSION PLAN – Continued
10. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended June 30, 2016, the City recognized pension expense of $3,489,592. 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 $ 574,813 $ (654,561) $ (79,748)
Difference in assumptions 1,981,640 - 1,981.640
Excess (deficit) in investment returns 6,971,601 - 6,971,601
Total $9,528,054 $ (654,561) $8,873,493
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year ended:
2017 $ 2,316,332
2018 2,316,332
2019 2,316,330
2020 1,502,622
2021 299,382
Thereafter 122,495
Total $ 8,873,493
11. Payable to the Pension Plan
At June 30, 2016, the City reported a payable of $117,956.92 for the outstanding amount of contributions
to the pension plan required for the year ended June 30, 2016.
72
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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 $2,849,472.00 and $839,912, respectively, in the governmental and business-
type activities combined.
The City, through its substantive commitment to provide other post -employment benefits (OPEB),
maintains a single-employer defined benefit plan to provide certain postretirement healthcare benefits to
all eligible former full-time employees until the retiree is eligible for Medicare (age 65). Such benefits
are not available to members’ spouses or dependents; rather, only to eligible former employees as
previously described. Specific details of the Plan include the provision of certain medical and dental
coverage. These benefits are provided through the City’s self-insured programs. The City is under no
statutory or contractual obligation to provide these postretirement healthcare benefits. Because the Plan
consists solely of the City’s firm commitment to provide OPEB through the payment of premiums to its
self-insured programs on behalf of its eligible retirees, no stand-alone financial report is either available
or generated.
2. Funding Policy
Premiums under the Plan for post-employment healthcare benefits are funded in accordance with rates
established by the City for its governmental and business-type funds. Effective 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, 201 6, 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.
73
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS - Continued
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:
2015 2016
Annual required contribution $ 871,799 $ 839,912
Interest on net OPEB obligation 119,775 122,186
Adjustment to annual required contribution (163,404) (166,692)
Annual OPEB cost $ 828,170 $ 795,406
Contributions made (774,600) (661,168)
Increase in net OPEB obligation $ 53,570 $ 134,238
Net OPEB obligation, July 1 2,661,664 2,715,234
Net OPEB obligation, June 30 $2,715,234 $2,849,472
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net
OPEB obligation for 2014 - 2016 were as follows:
Percentage of Net OPEB
Fiscal Year Annual Annual OPEB Obligation -
Ended OPEB Cost Cost Contributed End of Year
6/30/16 $ 795,406 83.1% $2,849,472
6/30/15 828,170 93.5% 2,715,234
6/30/14 877,464 81.7% 2,661,664
74
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS - Continued
4. Funding Status and Funding Progress
As of July 1, 2015, the most recent actuarial valuation date, the Plan was not funded. The actuarial
accrued liability for benefits equaled $8,885,545, resulting in an unfunded actuarial accrued liability
(UAAL) of $8,885,545. The covered payroll (annual payroll of active employees covered by the Plan)
equaled $16,052,741, and the ratio of the UAAL to the covered payroll equaled 55.2%.
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 proje ction
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, 2015, 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 5.0% 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 $681,936.76, excluding $1,667.83 of interfund interest, was
incurred by governmental funds during the year ended June 30, 2016. Interest and handling charges,
totaling $2,320,694.42 excluding $20,826.83 of interfund interest, was incurred by proprietary funds
during the year ended June 30, 2016. No interest cost was capitalized as part of the cost of assets
constructed during the period.
75
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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, 2016:
Fund Transfer From Transfer To
General Fund $ 4,494,065.67 $ 5,393,190.38
Airport Fund - 591,589.13
Park and Recreation Fund - 1,043,937.26
Public Safety Trust Fund - 23,465.10
Convention and Tourism Fund 1,600,099.37 -
Public Safety Trust Fund 567.44 -
A.C. Brase Foundation 37,000.00 ¤ -
Public Safety Trust Fund II 1,257,493.69 2,514,981.44
Casino Revenue Fund 3,529,850.57 -
Riverfront Region Economic Dev Fund - 192,176.57
Housing Development Fund - 29,139.50
Motor Fuel Tax Fund 1,295,849.46 -
Transportation Sales Trust I 3,374.55 3,374.55
Cap Imp Sales Tax - Water System Improve 3,089,568.11 -
Cap Imp Sales Tax - Sewer System Improve 4,420,000.00 ¤ -
Park/Storm Water Sales Tax-Capital 466,391.23 30,000.00
Fire Sales Tax 2,516,116.33 -
Parks/Storm Water Sales Tax 1,152,549.05 -
General Capital Improvements - 4,091,273.37
Park Capital Improvements - 35,449.29
CDBG Project Fund - 4,975.34
Storm Water Systems Improvements - 108,965.57
Park System Improvements 35,449.29 541,275.70
Sewer Fund - 4,744,274.40
Water Fund - 3,084,593.69
Solid Waste Fund - 846,500.00
Golf Course Fund - 95,044.30
Sporting Complexes Fund - 573,737.54
Fleet Management Fund 20,080.91 -
Employee Benefits Fund 25,161.86 -
Equipment Replacement Fund 8,225.60 3,900.00
$ 23,951,843.13 $ 23,951,843.13
76
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE J - INTERFUND ACTIVITY - Continued
B. The following is a summary of interfund balances as of June 30, 2016:
Advance to/from other funds:
Advances from Advances to
General Fund $ 81,765.01 $ -
Casino Revenue Fund 470,161.27
Solid Waste Fund - 470,161.27
Golf Course Fund - 35,914.23
Softball Complex Fund - 45,850.78
$ 551,926.28 $ 551,926.28
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 six enterprise funds which provide sewer, water, solid waste, golf, indoor sports
complex, and sporting complex services. Segment information for the year ended June 30, 2016 was as
follows:
Indoor
Sports
Sporting
Sewer Water Solid Waste Golf Course Complex Complexes Total
Fund Fund Fund Fund Fund
Fund Enterprise
Operating revenues $ 7,136,209.25 $ 6,545,914.32 $3,447,422.81 $ 530,307.13 $ - $ 397,250.76 $ 18,057,104.27
Depreciation 4,044,083.30 1,676,418.61 251,137.37 104,680.57 - 164,660.11 6,240,979.96
Operating Income (Loss) (1,367,790.40) (295,873.59) 139,679.33 (172,477.96) - (781,363.86) (2,477,826.48)
Operating transfers in 4,744,274.40 3,084,593.69 846,500.00 95,044.30 - 573,737.54 9,344,149.93
Net Income (Loss) 2,866,334.30 3,034,238.53 883,809.88 65,485.02 1,335,100.00 (141,887.24) 8,043,080.49
Current Capital Contributions 1,185,116.07 528,923.23 - 131,166.41 1,335,100.00 67,055.22 3,247,360.93
Property, Plant and Equipment
Additions 5,030,556.35 3,653,179.20 3,809,584.67 131,166.41 1,335,100.00 67,055.22 14,026,641.85
Deletions 172,603.00 143,804.57 379,671.25 - - - 696,078.82
Net Working Capital (2,408,402.38) 7,342,109.14 1,174,894.36 30,609.21 - 45,685.16 6,184,895.49
Total Assets 128,410,622.03 52,736,346.38 7,513,893.91 1,422,108.57 1,335,100.00 2,081,318.51 193,499,389.40
Current Liabilities 6,913,198.87 1,288,443.06 920,314.51 104,495.99 - 157,339.04 9,383,791.47
Long-Term Liabilities 69,177,427.03 11,077,068.02 3,900,727.59 138,826.95 - 86,896.72 84,380,946.31
Amounts payable to other funds - - 470,161.27 35,914.23 - 45,850.78 551,926.28
Total Liabilities 76,090,625.90 12,365,511.08 4,821,042.10 243,322.94 - 244,235.76 93,764,737.78
Total Net Position $ 52,821,511.18 $ 40,451,758.71 $3,018,812.61 $1,261,244.36 $1,335,100.00 $1,954,377.07 $100,842,803.93
77
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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 $275,087.39 and
long-term advance receivables of $551,926.28 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 $4,869,323.00 are
restricted by the City Charter to use during officially declared emergencies. Special revenue fund
balances totaling $27,867,578.26 are restricted by their enabling legislation. $(8,022.86) in capital project
fund balances are restricted as the result of special revenue transfers and unspent bond proceeds. The
remaining $93,904.53 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.
78
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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,
and then related committed balances, next related assigned balances, and finally unassigned balances.
Expenditures for a specifically identified purpose will reduce the specific classification of fund balance
that is identified.
Parks/Storm General
Parks and Transportation Water Sales Capital
General Recreation Casino Revenue Sales Tax Trust Tax-Capital Improvements
Fund Airport Fund Fund Fund Fund IV Fund Fund Other Funds Total
Fund balance
Nonspendable:
Prepaid expenses 83,693.22$ 20,062.51$ 27,855.13$ -$ -$ -$ -$ 143,476.53$ 275,087.39$
Long-term advance 81,765.01 - - 470,161.27 - - - - 551,926.28
Mausoleum 2,100.00 - - - - - - - 2,100.00
Restricted for:
Mausoleum 93,904.53 - - - - - - - 93,904.53
Emergencies 4,517,290.00 - - - - - - 352,033.00 4,869,323.00
Convention and tourism - - - - - - - 76,539.77 76,539.77
Community development - - - - - - - 59,938.81 59,938.81
Public safety - - - - - - - 539,038.66 539,038.66
Street projects - - - - 8,515,971.49 4,965,497.33 - 6,207,176.65 19,688,645.47
Water system projects - - - - - - - 4,348,889.65 4,348,889.65
Sewer system projects - - - - - - - 2,006,130.08 2,006,130.08
Parks and recreation - - - - - - - 419,396.90 419,396.90
Other capital projects - - - - - - - 720,976.06 720,976.06
Committed:
Other capital projects - - - 3,572,455.52 - - - - 3,572,455.52
Assigned to:
Airport - 155,265.90 - - - - - - 155,265.90
Parks and recreation - - 13,411.07 - - - - 469,136.11 484,547.18
Operations and mtce - - 489,504.30 - - - - - 489,504.30
Encumbrances 57,575.35 11,872.05 5,976.61 - - - - - 72,424.01
Public safety - - - - - - - 781,660.94 781,660.94
Other capital projects - - - - - - 27,328,934.84 - 27,328,934.84
Street projects - - - - - - - 299,245.75 299,245.75
Unassigned:2,878,130.66 - - - - - - - 2,878,130.66
7,714,458.77 187,200.46$ 536,747.11$ 4,042,616.79$ 8,515,971.49$ 4,965,497.33$ 27,328,934.84$ 16,423,638.91$ 69,714,065.70$
79
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE M - PROPRIETARY FUNDS RESTRICTED NET ASSETS AND RESTRICTED CASH
EQUIVALENTS AND INVESTMENT
At June 30, 2016, net position restricted for depreciation and replacement was $150,000 for the City’s
Water Fund and net assets restricted for emergencies were $1,728,590.00, $907,962.00, and $436,698.00
for the City’s Sewer, Water and Solid Waste Funds, respectively.
At June 30, 2016, the City’s Sewer Fund had restricted cash equivalents in sinking reserve funds for
Revenue Bonds in the amount of $5,979,261.57.
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 $30,000 as of June
30, 2016, 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, 2016. 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.
80
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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 thirteen 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 fifteen years and has used them to offset the cost of the
succeeding year’s premiums.
Vehicle loss and accident liability is carried by Savers Property and Casualty Insurance. It is rated “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 $3,450,000 and $3,550,000 annually beginning
January 1, 2015 and 2016, 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 87.0% and 87.0% of the aggregate stop
loss amount for fiscal years ending June 30, 2015 and 2016 respectively.
81
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE O - RISK MANAGEMENT – Continued
Corporate Claims Management, Inc. administers the City’s workers’ compensation plan. Under this plan,
the City pays the administrator a per claim fee to administer its claims. All claims are paid directly by
the City. The City has purchased insurance coverage from Safety National Casualty Corp. that limits the
City’s maximum individual claims liability to $550,000 for USL & H and $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.
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, 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
Provision 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
Provisions for Incurred Claims 3,208,003 880,535 4,088,538
Payment of Claims (3,062,503) (728,535) (3,791,038)
Balance June 30, 2016 $ 306,500 $ 372,000 $ 678,500
82
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
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, 2016, utility receivables totaled $2,916,070.16. On the financial statements, the utility
receivables are shown net of the allowance for doubtful accounts of $248,085.39. This results in net
utility receivable of $2,667,984.77. During the year ended June 30, 2016, the allowance was increased
by $189,328.54 or approximately 1.14% of the current year’s utility charges and accounts totaling
$169,097.41 were written off.
NOTE Q - COMMITMENTS AND CONTINGENCIES
1. Litigation
Various claims and lawsuits are pending against the City. In the opinion of City management, the
potential loss on all claims and lawsuits will not be significant to the City’s financial statements.
2. Grant Audit
The City receives Federal and State Grants for specific purposes that are subject to review and audit by
various Federal and State agencies. Such audits could result in a request for reimbursement by any of
the Federal and State agencies for expenditures disallowed under the terms and conditions of the
appropriate agency. In the opinion of City management, such disallowances, if any, will not be
significant.
3. Construction Commitments
As of June 30, 2016, the City had construction commitments outstanding of $17,773,687.01. The
construction commitments represent incomplete portions of contracts entered into to construct the
following: replacement of Fire Station #4 and Waste Water Treatment Plant, new Indoor Sports
Complex, new LaSalle Water Tank, new LaSalle Booster Pump and Transmission Main, Mississippi
River Trail Project, and various street, sanitary sewer, storm sewer, and water system projects. These
contracts are expected to be completed within the next fiscal year.
4. Encumbrances
As of June 30, 2016, the City had encumbrances outstanding of $21,931,910.98.
83
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE R – PRIOR PERIOD ADJUSTMENTS
The net position of the governmental activities has been decreased by $380,723.44 while the business-
type activities have been increased by $536,046.92 as of June 30, 2016, from transactions that occurred
in previous years. The most significant adjustment was $536,046.92 in construction in process costs
reclassified from governmental activities to business-type activities for sewer and water improvements
that were constructed at the City’s business park. Also, the net position of governmental activities was
increased by $73,836.49 for the amount paid to the Chamber for the operation of the CVB that should
have been set up as a prepaid expense in a prior year; increased $93,487.37 for CIP costs expensed in a
prior year in error; and decreased by $12,000.00 for out of district fire protection fees recognized in the
prior year in error.
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 fifteen
years from available revenues. Available revenues are defined in the development agreement as
75% of the City’s quarterly net revenues from specific sales taxes generated by the business
operations of the new retail facility which exceed $64,000. The rates of the specified sales taxes
currently equal 2%. Sales taxes with rates currently equal to .75% 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, 2016, no payment was due under the development
agreement.
In June 2004, the City of Cape Girardeau and Cape Girardeau County entered into a development
agreement with a local real estate developer. Under the agreement, the local developer agreed to
pay for certain public improvements incurred in conjunction with the development of a 60-acre
retail development and the City and County agreed to reimburse the local business for the
$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.
84
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE S - CONTINGENCY – Continued
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 $2,024,360 cost of these improvements from available net sales tax revenue generated from an
Academy Sports retail store. Academy Sports began operation in May 2013.
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, 2016 the City incurred payments of $319,494.20 under the development
agreement. This amount is included in the Development Services expenses on the statement of
activities.
3. In July 2007, the City entered into a development agreement with Greater Missouri Builders, Inc.
(GMB) to reimburse them for costs associated with the Town Plaza Redevelopment Project. In
conjunction with this agreement the City established the Town Plaza Community Improvement
District (CID) and determined the project area to be blighted pursuant to Chapter 353 of the
Missouri Revised Statutes.
This project t involved the conversion of the former Sears facility into a call center for National
85
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE S - CONTINGENCY – Continued
Asset Recover Services (NARS) and other various improvements, such as facade improvements,
parking facilities, roof reconstruction, and HVAC enhancements. Total reimbursements to GMB
for redevelopment costs were limited to $3.6 million plus 7.5% interest. These reimbursements
will be made from incremental County and City sales tax revenues, an additional CID sales tax ,
and real estate tax abatements. Reimbursements from incremental County and City sales tax
revenue will be limited to $1.2 of the $3.6 million total.
Incremental County and City sales tax revenue 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, 2016, no payment was due under the development
agreement.
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.
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 with the exception of one of the capital
improvement sales tax have expiration dates that could occur before the total costs of the
improvements are reimbursed to the developer. No provision is made to replace.
86
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2016
NOTE S - CONTINGENCY – Continued
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,
2016 the City incurred $185,831.32 under the development agreement.
REQUIRED SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 17,430,337.00 $ 17,430,337.00 $ 17,232,591.39 $ (197,745.61)
Licenses & permits 1,628,298.00 1,628,298.00 1,609,166.00 (19,132.00)
Intergovernmental 504,958.00 533,773.00 691,710.65 157,937.65
Charges for services 237,305.00 237,305.00 237,337.05 32.05
Internal charges 992,084.00 992,084.00 1,121,411.21 129,327.21
Fines and forfeits 777,875.00 777,875.00 687,997.00 (89,878.00)
Miscellaneous 350,767.00 350,767.00 318,945.15 (31,821.85)
Investment revenue 69,377.00 69,377.00 74,812.35 5,435.35
Total revenues 21,991,001.00 22,019,816.00 21,973,970.80 (45,845.20)
EXPENDITURES
Current:
Administrative services 2,795,175.00 2,865,723.55 2,589,983.08 275,740.47
Development services 2,400,564.00 2,555,564.00 2,407,069.54 148,494.46
Parks and recreation 1,718,715.00 1,725,699.45 1,674,373.69 51,325.76
Public safety 13,380,107.00 13,505,739.00 13,390,019.42 115,719.58
Public works 2,855,519.00 2,878,388.00 2,708,502.33 169,885.67
Total current 23,150,080.00 23,531,114.00 22,769,948.06 761,165.94
Debt service:
Administrative charges 500.00 500.00 291.50 208.50
Issuance cost - 11,069.00 11,068.17 0.83
Principal 80,000.00 1,120,000.00 1,120,000.00 -
Interest 47,487.00 25,357.00 25,102.88 254.12
Total debt service 127,987.00 1,156,926.00 1,156,462.55 463.45
Capital outlay:
Public safety - 19,938.00 4,454.92 15,483.08
Public works - - 19,110.32 (19,110.32)
Parks and recreation - 26,687.00 25,407.20 1,279.80
Total capital outlay - 46,625.00 48,972.44 (2,347.44)
Total expenditures 23,278,067.00 24,734,665.00 23,975,383.05 759,281.95
Excess (deficiency) of revenues over expenditures (1,287,066.00) (2,714,849.00) (2,001,412.25) 713,436.75
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 9,229.74 9,229.74
Special assessments 11,500.00 11,500.00 33,771.98 22,271.98
Bond proceeds - - 1,008,039.15 1,008,039.15
Advance repayments 55,466.00 55,466.00 55,465.69 (0.31)
Asset disposition - - 94,828.64 94,828.64
Transfers in 5,467,610.00 5,521,610.00 5,393,190.38 (128,419.62)
Transfers out (4,371,889.00) (4,549,900.00) (4,494,065.67) 55,834.33
Total other financing source (uses) 1,162,687.00 1,038,676.00 2,100,459.91 1,061,783.91
Net change in fund balances (124,379.00) (1,676,173.00) 99,047.66 1,775,220.66
Fund balances - beginning 7,451,990.16 7,451,990.16 7,451,990.16 -
Fund balances - ending $ 7,327,611.16 $ 5,775,817.16 $ 7,551,037.82 $ 1,775,220.66
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 167,000.00 $ 232,435.00 $ 277,116.80 $ 44,681.80
Charges for services 336,895.00 336,895.00 475,353.22 138,458.22
Miscellaneous 279,289.00 279,289.00 298,547.52 19,258.52
Investment revenue 450.00 450.00 714.30 264.30
Total revenues 783,634.00 849,069.00 1,051,731.84 202,662.84
EXPENDITURES
Current:
Development services 1,376,878.00 1,561,656.00 1,475,281.95 86,374.05
Total current 1,376,878.00 1,561,656.00 1,475,281.95 86,374.05
Capital outlay:
Development Services 50,000.00 123,884.00 128,870.47 (4,986.47)
Total capital outlay 50,000.00 123,884.00 128,870.47 (4,986.47)
Total expenditures 1,426,878.00 1,685,540.00 1,604,152.42 81,387.58
Excess (deficiency) of revenues over expenditures (643,244.00) (836,471.00) (552,420.58) 284,050.42
OTHER FINANCING SOURCES (USES)
Asset disposition - - 5,295.63 5,295.63
Transfers in 643,244.00 652,062.00 591,589.13 (60,472.87)
Total other financing source (uses) 643,244.00 652,062.00 596,884.76 (55,177.24)
Net change in fund balances - (184,409.00) 44,464.18 228,873.18
Fund balances - beginning 130,598.33 130,598.33 130,598.33 -
Fund balances - ending $ 130,598.33 $ (53,810.67) $ 175,062.51 $ 228,873.18
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ 500.00 $ 732.44 $ 232.44
Charges for services 1,347,465.00 1,347,465.00 1,582,910.10 235,445.10
Miscellaneous 19,880.00 19,880.00 21,481.80 1,601.80
Investment revenue 5,000.00 5,000.00 7,359.52 2,359.52
Total revenues 1,372,345.00 1,372,845.00 1,612,483.86 239,638.86
EXPENDITURES
Current:
Parks and Recreation 2,578,061.00 2,649,844.00 2,583,298.15 66,545.85
Total current 2,578,061.00 2,649,844.00 2,583,298.15 66,545.85
Capital outlay:
Parks and recreation - 7,400.00 - 7,400.00
Total capital outlay - 7,400.00 - 7,400.00
Total expenditures 2,578,061.00 2,657,244.00 2,583,298.15 73,945.85
Excess (deficiency) of revenues over expenditures (1,205,716.00) (1,284,399.00) (970,814.29) 313,584.71
OTHER FINANCING SOURCES (USES)
Asset disposition - - 3,006.41 3,006.41
Transfers in 1,205,716.00 1,210,714.00 1,043,937.26 (166,776.74)
Total other financing source (uses) 1,205,716.00 1,210,714.00 1,046,943.67 (163,770.33)
SPECIAL ITEMS
Total special items - - - -
Net change in fund balances - (73,685.00) 76,129.38 149,814.38
Fund balances - beginning 450,929.92 450,929.92 450,929.92 -
Fund balances - ending $ 450,929.92 $ 377,244.92 $ 527,059.30 $ 149,814.38
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 3,200,000.00 $ 3,200,000.00 $ 3,224,682.46 $ 24,682.46
Intergovernmental - - 19,440.54 19,440.54
Investment revenue 25,000.00 25,000.00 81,160.76 56,160.76
Total revenues 3,225,000.00 3,225,000.00 3,325,283.76 100,283.76
EXPENDITURES
Current:
Administrative services 96,000.00 96,000.00 93,704.88 2,295.12
Development services - 215,000.00 22,400.00 192,600.00
Public Safety - 12,519.00 18,561.12 (6,042.12)
Total current 96,000.00 323,519.00 134,666.00 188,853.00
Debt service:
Principal 350,033.00 350,033.00 350,032.84 0.16
Interest 109,967.00 109,967.00 109,967.16 (0.16)
Total debt service 460,000.00 460,000.00 460,000.00 (0.00)
Capital outlay:
Administrative services - 43,000.00 43,000.00 -
Public safety - 1,490,787.00 21,320.44 1,469,466.56
Parks and recreation - 32,786.00 5,743.25 27,042.75
Capital improvements 4,837,638.00 244,268.00 86,067.87 158,200.13
Total capital outlay 4,837,638.00 1,810,841.00 156,131.56 1,654,709.44
Total expenditures 5,393,638.00 2,594,360.00 750,797.56 1,843,562.44
Excess (deficiency) of revenues over expenditures (2,168,638.00) 630,640.00 2,574,486.20 1,943,846.20
OTHER FINANCING SOURCES (USES)
Advance repayments - - 18,173.73 18,173.73
Asset disposition - - 251,939.83 251,939.83
Transfers out (185,000.00) (3,576,174.00) (3,529,850.57) 46,323.43
Total other financing source (uses) (185,000.00) (3,576,174.00) (3,259,737.01) 316,436.99
Net change in fund balances (2,353,638.00) (2,945,534.00) (685,250.81) 2,260,283.19
Fund balances - beginning 4,181,087.23 4,181,087.23 4,181,087.23 -
Fund balances - ending $ 1,827,449.23 $ 1,235,553.23 $ 3,495,836.42 $ 2,260,283.19
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 3,100,000.00 $ 3,100,000.00 $ 3,032,305.18 $ (67,694.82)
Investment revenue 25,000.00 25,000.00 105,770.14 80,770.14
Total revenues 3,125,000.00 3,125,000.00 3,138,075.32 13,075.32
EXPENDITURES
Current:
Development services 235,000.00 235,000.00 252,662.74 (17,662.74)
Total current 235,000.00 235,000.00 252,662.74 (17,662.74)
Capital outlay:
Capital Improvements 5,177,500.00 9,054,984.00 2,613,105.22 6,441,878.78
Total capital outlay 5,177,500.00 9,054,984.00 2,613,105.22 6,441,878.78
Total expenditures 5,412,500.00 9,289,984.00 2,865,767.96 6,424,216.04
Excess (deficiency) of revenues over expenditures (2,287,500.00) (6,164,984.00) 272,307.36 6,437,291.36
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances (2,287,500.00) (6,164,984.00) 272,307.36 6,437,291.36
Fund balances - beginning 6,611,562.13 6,611,562.13 6,611,562.13 -
Fund balances - ending $ 4,324,062.13 $ 446,578.13 $ 6,883,869.49 $ 6,437,291.36
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax IV Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 95,495.71 $ 95,495.71
Total revenues - - 95,495.71 95,495.71
EXPENDITURES
Debt service:
Issuance cost - 311,844.00 307,689.89 4,154.11
Interest - - 43.52 (43.52)
Total debt service - 311,844.00 307,733.41 4,110.59
Capital outlay:
Public safety - 3,500,000.00 3,777,519.00 (277,519.00)
Capital improvements - 25,000,000.00 16,063,949.27 8,936,050.73
Total capital outlay - 28,500,000.00 19,841,468.27 8,658,531.73
Total expenditures - 28,811,844.00 20,149,201.68 8,662,642.32
Excess (deficiency) of revenues over expenditures - (28,811,844.00) (20,053,705.97) 8,758,138.03
OTHER FINANCING SOURCES (USES)
Bond proceeds - - 28,312,387.50 28,312,387.50
Transfers in - - 4,091,273.37 4,091,273.37
Total other financing source (uses) - - 32,403,660.87 32,403,660.87
Net change in fund balances - (28,811,844.00) 12,349,954.90 41,161,798.90
Fund balances - beginning 31,220.11 31,220.11 31,220.11 -
Fund balances - ending $ 31,220.11 $ (28,780,623.89) $ 12,381,175.01 $ 41,161,798.90
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
General Capital Improvements Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 3,909,375.00 $ 3,909,375.00 $ 3,898,815.23 $ (10,559.77)
Intergovernmental - - 2,145.32 2,145.32
Investment revenue 25,000.00 25,000.00 58,351.72 33,351.72
Total revenues 3,934,375.00 3,934,375.00 3,959,312.27 24,937.27
EXPENDITURES
Current:
Parks and recreation - - 3,000.00 (3,000.00)
Total current - - 3,000.00 (3,000.00)
Debt service:
Administrative charges 3,000.00 3,775.00 3,773.30 1.70
Issuance cost - 66,113.00 60,557.56 5,555.44
Principal 2,150,000.00 8,315,000.00 8,315,000.00 -
Interest 334,594.00 386,385.00 386,384.12 0.88
Total debt service 2,487,594.00 8,771,273.00 8,765,714.98 5,558.02
Capital outlay:
Parks and recreation 274,500.00 274,500.00 429,824.28 (155,324.28)
Total capital outlay 274,500.00 274,500.00 429,824.28 (155,324.28)
Total expenditures 2,762,094.00 9,045,773.00 9,198,539.26 (152,766.26)
Excess (deficiency) of revenues over expenditures 1,172,281.00 (5,111,398.00) (5,239,226.99) (127,828.99)
OTHER FINANCING SOURCES (USES)
Bond proceeds - - 6,282,903.15 6,282,903.15
Asset disposition - - 10,753.13 10,753.13
Transfers in - - 30,000.00 30,000.00
Transfers out (2,753,000.00) (2,753,000.00) (466,391.23) 2,286,608.77
Total other financing source (uses) (2,753,000.00) (2,753,000.00) 5,857,265.05 8,610,265.05
Net change in fund balances (1,580,719.00) (7,864,398.00) 618,038.06 8,482,436.06
Fund balances - beginning 4,327,292.66 4,327,292.66 4,327,292.66 -
Fund balances - ending $ 2,746,573.66 $ (3,537,105.34) $ 4,945,330.72 $ 8,482,436.06
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Parks/Stormwater Sales Tax-Capital Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
94
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2016
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 there is an
emergency situation, the City Council may amend the initial budget by ordinance. The
initial budget was adopted by the City Council on June 15, 2015 and amended on July 6,
2015, September 1, 2015, September 14, 2015, December 21, 2015, April 18, 2016, and
July 5, 2016. The initial budget and final amended budget are both reflected in the
financial statements.
For the year ended June 30, 2016, the fund expenditures for Capital Improvement Sales Tax-Sewer
System, Park Capital Improvements, Employee Benefits, and Workers Compensation exceeded their
approved budgets by $166,331.39, $25,379.35, $51,977.68, and $75,079.00, respectively.
95
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2016
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
Parks Storm
Casino Transportation Water Sales General
Parks and Revenue Sales Tax Trust Tax-Capital Capital Non-major
General Airport Recreation Fund Fund IV Fund Improvements Funds
GAAP Basis $ 24,433.82 $ 35,476.78 $ 83,142.28 $ (936,365.81) $ 50,687.68 $ 635,566.11 $27,297,693.17 $ 609,343.85
Increase due to:
Prior year-end encumbrances
Administrative services 4,825.89 - - - - - - -
Development services 13,200.43 31,475.32 - - - - - 245,173.00
Parks and recreation 3,611.78 - 2,203.99 - - - - -
Public Safety 51,384.88 - - - - - - 86,240.78
Public Works 45,736.48 - - - - - - -
Capital outlay - - - 306,732.53 1,848,101.52 - - 755,785.57
Advance repayments
from other funds
55,465.69
-
-
18,173.73
-
-
-
-
Adjust investments to market - - - - - - - 409.40
Funds not budgeted annually - - - - - 12,718.46
Encumbrance revenue - - - - - - - 7,000.00
174,225.15 31,475.32 2,203.99 324,906.26 1,848,101.52 - - 1,107,327.21
Decrease due to:
Current year-end encumbrances
Administrative services 1,281.97 - - - - - - -
Development services 1,015.00 14,996.34 - - - - - 7,000.00
Parks and recreation 19,782.63 - 5,976.61 - - - - -
Public safety 28,714.12 - - - - - 14,820,066.34 29,551.46
Public works 6,781.63 - - - - - - -
Capital outlay - - - 61,861.13 1,593,902.75 - - 1,150,901.40
Funds not budgeted annually - - - - - - 99,574.37
Encumbrance revenue 21,286.71 7,267.97 - - - - - 464,905.49
Adjust invest to market 20,749.25 223.61 3,240.28 11,930.13 32,579.09 17,528.05 127,671.93 52,372.11
99,611.31 22,487.92 9,216.89 73,791.26 1,626,481.84 17,528.05 14,947,738.27 1,804,304.83
Budget Basis $ 99,047.66 $ 44,464.18 $ 76,129.38 $ (685,250.81) $ 272,307.36 $ 618,038.06 $12,349,954.90 $ (87,633.77)
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.
96
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2016
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Solid Golf Indoor Sports Sporting
Sewer Water Waste Course Complex Complexes
GAAP Basis $ 2,866,334.30 $ 3,034,238.53 $ 883,809.88 $ 65,485.02 $1,335,100.00 $ (141,887.24)
Increase due to :
Prior year encumbrances
Operating expenses 274,351.27 13,638.66 15,148.67 - - 3,758.50
Capital outlays 2,410,800.01 1,275,119.08 30,284.50 - - -
Depreciation 4,044,083.30 1,676,418.61 251,137.37 104,680.57 - 164,660.11
Deferred revenues - - 11,630.43 - - -
Special assessments 1,199.39 384.04 - - - -
Bond proceeds 4,891,313.56 - 3,206,772.40 - - -
Interest cost amortized 78,629.66 - - - - -
Amortized Bond premium/discount - - 2,335.64 - - -
Amount deferred for future debt service - -
for capital appreciation bonds: - -
Interest subsidy received 33,004.07 - - - - -
Net OPEB obligation 10,789.00 - -
- 3,089.00 - 828.00
Asset dispositions 17,661.60 51,662.63 166,691.82 - - -
Net pension cost 133,749.56 20,219.63 84,660.05 23,128.49 - 30,447.11
Bad debt allowance 77,843.95 52,382.95 59,101.64 - - -
11,973,425.37 3,089,825.60 3,827,762.52 130,898.06 - 199,693.72
Decrease due to:
Year-end encumbrances
Operating expenses 90,252.15 36,347.01 26,438.00 - - 11,578.00
Capital outlays 2,055,718.12 1,816,715.55 130,495.60 - - -
Landfill closure and maintenance costs - - 2,043.85 - - -
Interest paid more than accrual 21,786.42 - - - - -
Bond principal paid 5,218,000.00 555,000.00 193,173.73 34,183.68 - 21,282.01
Amortized Bond premium/discount - 13,922.58 - - -
Capital outlays 4,995,097.11 2,992,970.89 3,991,088.46 - - -
Deferred revenues 91,982.20 69,275.76 - - - -
Adjustment to liability for future landfill - -
postclosure maintenance costs - - 1,706.15 - - -
Adjust investments to market 11,425.04 24,599.83 5,709.61 510.78 - 716.05
Net OPEB Obligation - - 8,951.00 - - -
Net Pension Cost - 549.00 - - - -
Contributed capital 1,075,537.43 528,923.23 - 131,166.41 1,335,100.00 67,055.22
13,559,798.47 6,038,303.85 4,359,606.40 165,860.87 1,335,100.00 100,631.28
Budget Basis $ 1,279,961.20 $ 85,760.28 $ 351,966.00 $ 30,522.21 $ - $ (42,824.80)
97
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2016
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Fleet Employee Risk Equipment
IT Management Fringe Management Replacement
GAAP Basis $ (103,173.22) $ (46,977.46) $ (4,707.21) $ (415,361.75) $ 111,136.30
Increase due to:
Prior year encumbrances
Operating expenses 26,150.80 1,235.69 - - -
Capital Outlays - - - - -
Depreciation 140,123.79 23,914.32 - - 253,651.21
Deferred revenues - 16,180.91 - - -
Difference between proceeds from sale
of fixed assets and gain or loss - - - - 11,533.92
Net pension cost
Net OPEB Obligation
23,189.28
3,497.00
54,261.74
14,481.00
-
-
-
-
-
-
192,960.87 110,073.66 - - 265,185.13
Decrease due to:
Year-end encumbrances
Operating expenses 20,996.42 938.75 600.00 - -
Capital outlays 87,880.00 11,854.94 - - 317,846.89
Adjust investments to market 719.31 615.89 9,617.73 4,258.28 5,402.17
109,595.73 13,409.58 10,217.73 4,258.28 323,249.06
Budget Basis $ (19,808.08) $ 49,686.62 $(14,924.94) $ (419,620.03) $ 53,072.37
2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 795,771 768,458$
Interest on the Pension Liability 2,346,499 2,240,283
Changes of Benefit Terms - -
Differences Between Expected and Actual Experience
of the Total Pension Liability (183,850) (261,952)
Changes of Assumptions 1,388,735 -
Benefit Payments, Including Refunds of Employee Contributions (1,324,473) (1,266,841)
Net Change in Total Pension Liability 3,022,682 1,479,948
Total Pension Liability - Beginning 32,625,229 31,145,281
Total Pension Liability - Ending (A)35,647,911$ 32,625,229$
Plan Fiduciary Net Position
Contributions - Employer 820,228 1,953,089$
Contributions - Employees - -
Net Investment Income (82,162) 684,825
Benefit Payments, Including Refunds of Employee Contributions (1,324,473) (1,266,841)
Pension Plan Administrative Expense (37,018) (40,731)
Other (Net Transfers)(298,285) 267,961
Net Change in Plan Fiduciary Net Position (921,710) 1,598,303
Plan Fiduciary Net Position - Beginning 36,865,010 35,266,707
Plan Fiduciary Net Position - Ending (B)35,943,300$ 36,865,010$
Net Pension Liability - Ending (A) - (B)(295,389) (4,239,781)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 100.83%113.00%
Covered Valuation Payroll 9,109,297$ 8,987,241$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -3.24%-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, 2016
GENERAL DIVISION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
See Accompanying Notes to the Basic Financial Statements.
98
2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 309,133$ 303,651$
Interest on the Pension Liability 1,248,307 1,182,926
Changes of Benefit Terms - -
Differences Between Expected and Actual Experience
of the Total Pension Liability (83,909) 274,477
Changes of Assumptions 481,968 -
Benefit Payments, Including Refunds of Employee Contributions (827,008) (895,666)
Net Change in Total Pension Liability 1,128,491 865,388
Total Pension Liability - Beginning 17,472,441 16,607,053
Total Pension Liability - Ending (A)18,600,932$ 17,472,441$
Plan Fiduciary Net Position
Contributions - Employer 337,743$ 1,043,262$
Contributions - Employees - -
Net Investment Income (46,280) 349,748
Benefit Payments, Including Refunds of Employee Contributions (827,008) (895,666)
Pension Plan Administrative Expense (12,366) (12,862)
Other (Net Transfers)50,565 (106,927)
Net Change in Plan Fiduciary Net Position (497,346) 377,555
Plan Fiduciary Net Position - Beginning 18,973,729 18,596,174
Plan Fiduciary Net Position - Ending (B)18,476,383$ 18,973,729$
Net Pension Liability - Ending (A) - (B)124,549 (1,501,288)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 99.33%108.59%
Covered Valuation Payroll 3,536,454$ 3,223,790$
Net Pension Liability as a Percentage
of Covered Valuation Payroll 3.52%-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, 2016
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.
99
2016 2015
Fiscal Year Ended June 30, 2015
Total Pension Liability
Service Costs 375,784$ 370,414$
Interest on the Pension Liability 1,336,826 1,319,931
Changes of Benefit Terms - -
Differences Between Expected and Actual Experience
of the Total Pension Liability 461,181 (356,529)
Changes of Assumptions 508,788 -
Benefit Payments, Including Refunds of Employee Contributions (1,148,773) (1,059,610)
Net Change in Total Pension Liability 1,533,806 274,206
Total Pension Liability - Beginning 18,818,716 18,544,510
Total Pension Liability - Ending (A)20,352,522$ 18,818,716$
Plan Fiduciary Net Position
Contributions - Employer 375,209$ 765,345$
Contributions - Employees - -
Net Investment Income (40,593) 415,318
Benefit Payments, Including Refunds of Employee Contributions (1,148,773) (1,059,610)
Pension Plan Administrative Expense (9,925) (10,625)
Other (Net Transfers)18,256.00 (25,522)
Net Change in Plan Fiduciary Net Position (805,826) 84,906
Plan Fiduciary Net Position - Beginning 21,417,173 21,332,267
Plan Fiduciary Net Position - Ending (B)20,611,347$ 21,417,173$
Net Pension Liability - Ending (A) - (B)(258,825) (2,598,457)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 101.27%113.81%
Covered Valuation Payroll 3,099,147$ 3,017,659$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -8.35%-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.
100
June 30, 2016
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
2016 1,533,180$ 1,533,180$ -$ 16,040,522$ 9.56%
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%
Notes to Schedule:
Valuation Date:February 29, 2016
Notes The roll-forward of total pension liability from February 29, 2016 to
June 30, 2016 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 and Modified Terminal Funding
Amortization Method:Level Percentage of Payroll, Closed
Remaining Amortization Period:Multiple bases from 13 to 15 years
Asset Valuation Method:5-year smoothed market, 20% corridor
Inflation:3.25% wage inflation, 2.50% price inflation
Salary Increases:3.25% to 7.15%, including wage inflation
Investment Rate of Return:7.25%, net of investment expenses
Retirement Age:Experience-based table of rates that are specific to the type of
eligibility condition.
Mortality:The healthy retiree mortality tables, for post-retirement mortality,
were the RP-2014 Healthy Annuitant mortality table for males and
females. The disabled retiree mortality tables, for post-retirement
mortality, were the RP-2014 disabled mortality table for males and
females. The pre-retirement mortality tables used were the RP-2014
employees mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for
mortality improvement back to the observation period base year of
2006. The base year for males was then established to be 2017.
Mortality rates for a particular calendar year are determined by
applying the MP-2015 morality improvement scale to the above
described tables.
Other Information:New assumptions adopted based on the 5-year experience study for
the period March 1, 2010 through February 28, 2015.
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.
101
SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,606,250.00 $ 2,606,250.00 $ 2,599,565.65 $ (6,684.35)
Investment revenue 60,000.00 60,000.00 72,187.11 12,187.11
Total revenues 2,666,250.00 2,666,250.00 2,671,752.76 5,502.76
EXPENDITURES
Current:
Development services 130,000.00 130,000.00 126,331.39 3,668.61
Total current 130,000.00 130,000.00 126,331.39 3,668.61
Debt service:
Administrative charges 5,300.00 5,300.00 - 5,300.00
Principal 45,700.00 45,700.00 45,700.00 -
Interest 11,845.00 11,845.00 11,844.76 0.24
Total debt service 62,845.00 62,845.00 57,544.76 5,300.24
Total expenditures 192,845.00 192,845.00 183,876.15 8,968.85
Excess (deficiency) of revenues over expenditures 2,473,405.00 2,473,405.00 2,487,876.61 14,471.61
OTHER FINANCING SOURCES (USES)
Transfers out (6,649,500.00) (6,649,500.00) (3,089,568.11) 3,559,931.89
Total other financing source (uses) (6,649,500.00) (6,649,500.00) (3,089,568.11) 3,559,931.89
Net change in fund balances (4,176,095.00) (4,176,095.00) (601,691.50) 3,574,403.50
Fund balances - beginning 4,960,608.38 4,960,608.38 4,960,608.38 -
Fund balances - ending $ 784,513.38 $ 784,513.38 $ 4,358,916.88 $ 3,574,403.50
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Cap Imp Sales Tax-Water System Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,141,710.00 $ 2,141,710.00 $ 2,211,930.89 $ 70,220.89
Investment revenue 1,000.00 1,000.00 11,691.57 10,691.57
Total revenues 2,142,710.00 2,142,710.00 2,223,622.46 80,912.46
EXPENDITURES
Current:
Development Services 713,080.00 714,338.63 633,092.35 81,246.28
Total current 713,080.00 714,338.63 633,092.35 81,246.28
Debt service:
Principal - 30,000.00 30,000.00 -
Interest - 10,787.00 10,786.37 0.63
Total debt service - 40,787.00 40,786.37 0.63
Capital outlay:
Capital Improvements 1,268,025.00 118,873.00 35,075.27 83,797.73
Total capital outlay 1,268,025.00 118,873.00 35,075.27 83,797.73
Total expenditures 1,981,105.00 873,998.63 708,953.99 165,044.64
Excess (deficiency) of revenues over expenditures 161,605.00 1,268,711.37 1,514,668.47 245,957.10
OTHER FINANCING SOURCES (USES)
Transfers out (333,333.00) (1,600,099.37) (1,600,099.37) -
Total other financing source (uses) (333,333.00) (1,600,099.37) (1,600,099.37) -
Net change in fund balances (171,728.00) (331,388.00) (85,430.90) 245,957.10
Fund balances - beginning 483,643.67 483,643.67 483,643.67 -
Prior period adjustment - - 73,836.49
Fund balances - ending $ 311,915.67 $ 152,255.67 $ 472,049.26 $ 245,957.10
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 26,930.00 $ 26,930.00 $ 27,946.28 $ 1,016.28
Investment revenue 500.00 500.00 1,182.25 682.25
Total revenues 27,430.00 27,430.00 29,128.53 1,698.53
EXPENDITURES
Current:
Development services 27,430.00 27,430.00 18,223.47 9,206.53
Total current 27,430.00 27,430.00 18,223.47 9,206.53
Total expenditures 27,430.00 27,430.00 18,223.47 9,206.53
Excess (deficiency) of revenues over expenditures - - 10,905.06 10,905.06
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances - - 10,905.06 10,905.06
Fund balances - beginning 93,154.31 93,154.31 93,154.31 -
Fund balances - ending $ 93,154.31 $ 93,154.31 $ 104,059.37 $ 10,905.06
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Downtown Business District
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 350,059.00 $ 350,059.00 $ 350,497.52 $ 438.52
Licenses & permits 4,478.00 4,478.00 4,506.00 28.00
Intergovernmental 9,210.00 9,210.00 9,192.39 (17.61)
Investment revenue 3,750.00 3,750.00 4,186.47 436.47
Total revenues 367,497.00 367,497.00 368,382.38 885.38
EXPENDITURES
Current:
Public safety 467,497.00 467,497.00 339,641.14 127,855.86
Total current 467,497.00 467,497.00 339,641.14 127,855.86
Total expenditures 467,497.00 467,497.00 339,641.14 127,855.86
Excess (deficiency) of revenues over expenditures (100,000.00) (100,000.00) 28,741.24 128,741.24
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances (100,000.00) (100,000.00) 28,741.24 128,741.24
Fund balances - beginning 329,892.64 329,892.64 329,892.64 -
Fund balances - ending $ 229,892.64 $ 229,892.64 $ 358,633.88 $ 128,741.24
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Health Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 1,445,000.00 $ 1,445,000.00 $ 1,522,559.92 $ 77,559.92
Investment revenue 8,887.00 8,887.00 14,954.74 6,067.74
Total revenues 1,453,887.00 1,453,887.00 1,537,514.66 83,627.66
EXPENDITURES
Capital outlay:
Capital Improvements - 127,906.00 53,187.05 74,718.95
Total capital outlay - 127,906.00 53,187.05 74,718.95
Total expenditures - 127,906.00 53,187.05 74,718.95
Excess (deficiency) of revenues over expenditures 1,453,887.00 1,325,981.00 1,484,327.61 158,346.61
OTHER FINANCING SOURCES (USES)
Special assessments 4,468.00 4,468.00 4,387.34 (80.66)
Transfers in - 5,000.00 3,374.55 (1,625.45)
Transfers out (1,420,000.00) (1,420,000.00) (1,295,849.46) 124,150.54
Total other financing source (uses) (1,415,532.00) (1,410,532.00) (1,288,087.57) 122,444.43
Net change in fund balances 38,355.00 (84,551.00) 196,240.04 280,791.04
Fund balances - beginning 1,078,159.34 1,078,159.34 1,078,159.34 -
Fund balances - ending $ 1,116,514.34 $ 993,608.34 $ 1,274,399.38 $ 280,791.04
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 726.16 $ 726.16
Total revenues - - 726.16 726.16
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 726.16 726.16
OTHER FINANCING SOURCES (USES)
Special assessments - - 2,648.39 2,648.39
Transfers out - (5,000.00) (3,374.55) 1,625.45
Total other financing source (uses) - (5,000.00) (726.16) 4,273.84
Net change in fund balances - (5,000.00) (0.00) 5,000.00
Fund balances - beginning - - - -
Fund balances - ending $ - $ (5,000.00) $ (0.00) $ 5,000.00
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax I Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,606,250.00 $ 2,606,250.00 $ 2,599,553.66 $ (6,696.34)
Investment revenue 25,000.00 25,000.00 46,256.97 21,256.97
Total revenues 2,631,250.00 2,631,250.00 2,645,810.63 14,560.63
EXPENDITURES
Current:
Development services 130,000.00 130,000.00 126,331.39 3,668.61
Total current 130,000.00 130,000.00 126,331.39 3,668.61
Total expenditures 130,000.00 130,000.00 126,331.39 3,668.61
Excess (deficiency) of revenues over expenditures 2,501,250.00 2,501,250.00 2,519,479.24 18,229.24
OTHER FINANCING SOURCES (USES)
Transfers out (4,250,000.00) (4,250,000.00) (4,420,000.00) (170,000.00)
Total other financing source (uses) (4,250,000.00) (4,250,000.00) (4,420,000.00) (170,000.00)
Net change in fund balances (1,748,750.00) (1,748,750.00) (1,900,520.76) (151,770.76)
Fund balances - beginning 3,915,243.40 3,915,243.40 3,915,243.40 -
Fund balances - ending $ 2,166,493.40 $ 2,166,493.40 $ 2,014,722.64 $ (151,770.76)
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Cap Imp Sales Tax-Sewer System Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ 40,500.00 $ 40,910.00 $ 410.00
Investment revenue - - 7,297.20 7,297.20
Total revenues - 40,500.00 48,207.20 7,707.20
EXPENDITURES
Current:
Public safety 86,256.00 101,048.00 92,631.62 8,416.38
Total current 86,256.00 101,048.00 92,631.62 8,416.38
Debt service:
Principal - 410,000.00 410,000.00 -
Interest - 133,788.00 133,786.67 1.33
Total debt service - 543,788.00 543,786.67 1.33
Capital outlay:
Public safety - 162,074.00 162,061.10 12.90
Total capital outlay - 162,074.00 162,061.10 12.90
Total expenditures 86,256.00 806,910.00 798,479.39 8,430.61
Excess (deficiency) of revenues over expenditures (86,256.00) (766,410.00) (750,272.19) 16,137.81
OTHER FINANCING SOURCES (USES)
Transfers in 2,835,333.00 2,835,333.00 2,514,981.44 (320,351.56)
Transfers out (1,251,000.00) (1,269,000.00) (1,257,493.69) 11,506.31
Total other financing source (uses) 1,584,333.00 1,566,333.00 1,257,487.75 (308,845.25)
Net change in fund balances 1,498,077.00 799,923.00 507,215.56 (292,707.44)
Fund balances - beginning 79,984.14 79,984.14 79,984.14 -
Fund balances - ending $ 1,578,061.14 $ 879,907.14 $ 587,199.70 $ (292,707.44)
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,502,000.00 $ 2,502,000.00 $ 2,525,970.84 $ 23,970.84
Total revenues 2,502,000.00 2,502,000.00 2,525,970.84 23,970.84
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 2,502,000.00 2,502,000.00 2,525,970.84 23,970.84
OTHER FINANCING SOURCES (USES)
Transfers out (2,502,000.00) (2,538,000.00) (2,516,116.33) 21,883.67
Total other financing source (uses) (2,502,000.00) (2,538,000.00) (2,516,116.33) 21,883.67
Net change in fund balances - (36,000.00) 9,854.51 45,854.51
Fund balances - beginning 225,262.59 225,262.59 225,262.59 -
Fund balances - ending $ 225,262.59 $ 189,262.59 $ 235,117.10 $ 45,854.51
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 724.75 $ 724.75
Total revenues - - 724.75 724.75
EXPENDITURES
Current:
Public Safety - 22,500.00 17,871.88 4,628.12
Total current - 22,500.00 17,871.88 4,628.12
Debt service:
Total debt service - - - -
Capital outlay:
Public Safety - - 365.00 (365.00)
Total capital outlay - - 365.00 (365.00)
Total expenditures - 22,500.00 18,236.88 4,263.12
Excess (deficiency) of revenues over expenditures - (22,500.00) (17,512.13) 4,987.87
OTHER FINANCING SOURCES (USES)
Asset disposition - - 17,566.48 17,566.48
Transfers in - 58,000.00 23,465.10 (34,534.90)
Transfers out - - (567.44) (567.44)
Total other financing source (uses) - 58,000.00 40,464.14 (17,535.86)
Net change in fund balances - 35,500.00 22,952.01 (12,547.99)
Fund balances - beginning 47,698.48 47,698.48 47,698.48 -
Fund balances - ending $ 47,698.48 $ 83,198.48 $ 70,650.49 $ (12,547.99)
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 304,778.48 $ 304,778.48
Investment revenue 320.00 320.00 2,557.22 2,237.22
Total revenues 320.00 320.00 307,335.70 307,015.70
EXPENDITURES
Debt service:
Interest - - 611.43 (611.43)
Total debt service - - 611.43 (611.43)
Capital outlay:
Capital Improvements 4,100,000.00 4,100,000.00 583,140.50 3,516,859.50
Total capital outlay 4,100,000.00 4,100,000.00 583,140.50 3,516,859.50
Total expenditures 4,100,000.00 4,100,000.00 583,751.93 3,516,248.07
Excess (deficiency) of revenues over expenditures (4,099,680.00) (4,099,680.00) (276,416.23) 3,823,263.77
OTHER FINANCING SOURCES (USES)
Special assessments 5,323.00 5,323.00 4,817.10 (505.90)
Other loan proceeds 4,100,000.00 4,100,000.00 700,000.00 (3,400,000.00)
Total other financing source (uses) 4,105,323.00 4,105,323.00 704,817.10 (3,400,505.90)
Net change in fund balances 5,643.00 5,643.00 428,400.87 422,757.87
Fund balances - beginning (350,595.84) (350,595.84) (350,595.84) -
Fund balances - ending $ (344,952.84) $ (344,952.84) $ 77,805.03 $ 422,757.87
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Street Capital Improvements Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 91,923.06 $ 91,923.06
Investment revenue - - 351.39 351.39
Total revenues - - 92,274.45 92,274.45
EXPENDITURES
Capital outlay:
Capital Improvements - 93,000.00 118,379.35 (25,379.35)
Total capital outlay - 93,000.00 118,379.35 (25,379.35)
Total expenditures - 93,000.00 118,379.35 (25,379.35)
Excess (deficiency) of revenues over expenditures - (93,000.00) (26,104.90) 66,895.10
OTHER FINANCING SOURCES (USES)
Transfers in - - 35,449.29 35,449.29
Total other financing source (uses) - - 35,449.29 35,449.29
Net change in fund balances - (93,000.00) 9,344.39 102,344.39
Fund balances - beginning 17,279.06 17,279.06 17,279.06 -
Fund balances - ending $ 17,279.06 $ (75,720.94) $ 26,623.45 $ 102,344.39
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Park Capital Improvements Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 284.02 $ 284.02
Total revenues - - 284.02 284.02
EXPENDITURES
Current:
Development services - 10,000.00 4,087.48 5,912.52
Total current - 10,000.00 4,087.48 5,912.52
Debt service:
Interest - - 0.92 (0.92)
Total debt service - - 0.92 (0.92)
Total expenditures - 10,000.00 4,088.40 5,911.60
Excess (deficiency) of revenues over expenditures - (10,000.00) (3,804.38) 6,195.62
OTHER FINANCING SOURCES (USES)
Transfers in - - 4,975.34 4,975.34
Total other financing source (uses) - - 4,975.34 4,975.34
Net change in fund balances - (10,000.00) 1,170.96 11,170.96
Fund balances - beginning 1,035.71 1,035.71 1,035.71 -
Fund balances - ending $ 1,035.71 $ (8,964.29) $ 2,206.67 $ 11,170.96
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Community Development Block Grant Project Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 39,357.23 $ 39,357.23
Total revenues - - 39,357.23 39,357.23
EXPENDITURES
Current:
Total current - - - -
Debt service:
Total debt service - - - -
Capital outlay:
Capital improvements - 3,250,000.00 1,208,972.87 2,041,027.13
Total capital outlay - 3,250,000.00 1,208,972.87 2,041,027.13
Total expenditures - 3,250,000.00 1,208,972.87 2,041,027.13
Excess (deficiency) of revenues over expenditures - (3,250,000.00) (1,169,615.64) 2,080,384.36
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances - (3,250,000.00) (1,169,615.64) 2,080,384.36
Fund balances - beginning 3,248,069.63 3,248,069.63 3,248,069.63 -
Fund balances - ending $ 3,248,069.63 $ (1,930.37) $ 2,078,453.99 $ 2,080,384.36
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax III Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 1,303,125.00 $ 1,303,125.00 $ 1,299,605.11 $ (3,519.89)
Investment revenue 2,500.00 2,500.00 10,558.37 8,058.37
Total revenues 1,305,625.00 1,305,625.00 1,310,163.48 4,538.48
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 1,305,625.00 1,305,625.00 1,310,163.48 4,538.48
OTHER FINANCING SOURCES (USES)
Transfers out (1,225,994.00) (1,225,994.00) (1,152,549.05) 73,444.95
Total other financing source (uses) (1,225,994.00) (1,225,994.00) (1,152,549.05) 73,444.95
Net change in fund balances 79,631.00 79,631.00 157,614.43 77,983.43
Fund balances - beginning 314,492.61 314,492.61 314,492.61 -
Fund balances - ending $ 394,123.61 $ 394,123.61 $ 472,107.04 $ 77,983.43
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Parks/Stormwater Sales Tax Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 175,000.00 $ 394,990.00 $ 112,518.66 $ (282,471.34)
Investment revenue - - 5.00 5.00
Total revenues 175,000.00 394,990.00 112,523.66 (282,466.34)
EXPENDITURES
Current:
Development services 200,000.00 419,990.00 140,997.65 278,992.35
Total current 200,000.00 419,990.00 140,997.65 278,992.35
Debt service:
Interest - - 1,010.20 (1,010.20)
Total debt service - - 1,010.20 (1,010.20)
Total expenditures 200,000.00 419,990.00 142,007.85 277,982.15
Excess (deficiency) of revenues over expenditures (25,000.00) (25,000.00) (29,484.19) (4,484.19)
OTHER FINANCING SOURCES (USES)
Transfers in 25,000.00 27,500.00 29,139.50 1,639.50
Total other financing source (uses) 25,000.00 27,500.00 29,139.50 1,639.50
Net change in fund balances - 2,500.00 (344.69) (2,844.69)
Fund balances - beginning (44,231.41) (44,231.41) (44,231.41) -
Fund balances - ending $ (44,231.41) $ (41,731.41) $ (44,576.10) $ (2,844.69)
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 200,000.00 $ 200,000.00 $ - $ (200,000.00)
Investment revenue - - 266.99 266.99
Total revenues 200,000.00 200,000.00 266.99 (199,733.01)
EXPENDITURES
Capital outlay:
Capital Improvements 200,000.00 200,000.00 17,329.55 182,670.45
Total capital outlay 200,000.00 200,000.00 17,329.55 182,670.45
Total expenditures 200,000.00 200,000.00 17,329.55 182,670.45
Excess (deficiency) of revenues over expenditures - - (17,062.56) (17,062.56)
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances - - (17,062.56) (17,062.56)
Fund balances - beginning 27,543.95 27,543.95 27,543.95 -
Fund balances - ending $ 27,543.95 $ 27,543.95 $ 10,481.39 $ (17,062.56)
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 59,636.34 $ 59,636.34
Residential charges 4,515,000.00 4,515,000.00 4,436,626.22 (78,373.78)
Commercial charges 2,425,000.00 2,425,000.00 2,459,036.71 34,036.71
Other fees and charges 128,000.00 128,000.00 125,096.14 (2,903.86)
Internal charges - - 20,719.09 20,719.09
Miscellaneous 1,000.00 1,000.00 2,748.89 1,748.89
Investment revenue 130,253.00 130,253.00 112,642.37 (17,610.63)
Total revenues 7,199,253.00 7,199,253.00 7,216,505.76 17,252.76
EXPENDITURES
Current:
Contractual services 473,463.00 767,531.44 785,878.16 (18,346.72)
General operating expenses 440,695.00 448,037.26 464,007.27 (15,970.01)
Internal service expense 198,503.00 198,503.00 176,763.79 21,739.21
Material and supplies 931,266.00 1,003,937.12 797,585.02 206,352.10
Personnel services 1,814,588.00 1,814,588.00 1,764,938.08 49,649.92
Special projects expense 18,000.00 59,058.18 127,898.02 (68,839.84)
Total current 3,876,515.00 4,291,655.00 4,117,070.34 174,584.66
Debt service:
Administrative charges 773,063.00 773,063.00 713,903.36 59,159.64
Principal 5,218,000.00 5,218,000.00 5,218,000.00 -
Interest 1,117,284.00 1,117,284.00 1,028,062.28 89,221.72
Total debt service 7,108,347.00 7,108,347.00 6,959,965.64 148,381.36
Capital outlay:
Capital Improvement Projects 1,130,000.00 4,248,300.00 4,324,438.91 (76,138.91)
Equipment 342,500.00 339,860.00 315,576.31 24,283.69
Total capital outlay 1,472,500.00 4,588,160.00 4,640,015.22 (51,855.22)
Total expenditures 12,457,362.00 15,988,162.00 15,717,051.20 271,110.80
Excess (deficiency) of revenues over expenditures (5,258,109.00) (8,788,909.00) (8,500,545.44) 288,363.56
OTHER FINANCING SOURCES (USES)
Contributed cap - connect fee 90,000.00 90,000.00 109,578.64 19,578.64
Special assessments 2,331.00 2,331.00 1,199.39 (1,131.61)
Bond proceeds 800,000.00 800,000.00 4,891,313.56 4,091,313.56
Asset disposition 56,665.00 54,665.00 34,140.65 (20,524.35)
Transfers in 4,560,274.00 4,577,111.00 4,744,274.40 167,163.40
Total other financing source (uses) 5,509,270.00 5,524,107.00 9,780,506.64 4,256,399.64
Net change in fund balances 251,161.00 (3,264,802.00) 1,279,961.20 4,544,763.20
Fund balances - beginning 4,894,896.66 4,894,896.66 4,894,896.66 -
Fund balances - ending $ 5,146,057.66 $ 1,630,094.66 $ 6,174,857.86 $ 4,544,763.20
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 7,692.30 $ 7,692.30
Residential charges 3,720,920.00 3,720,920.00 3,702,049.36 (18,870.64)
Commercial charges 2,499,365.00 2,499,365.00 2,512,622.87 13,257.87
Other fees and charges 229,000.00 229,000.00 233,765.17 4,765.17
Miscellaneous 18,217.00 18,217.00 28,201.16 9,984.16
Investment revenue 56,329.00 56,329.00 59,162.68 2,833.68
Total revenues 6,523,831.00 6,523,831.00 6,543,493.54 19,662.54
EXPENDITURES
Current:
Contractual services 2,866,541.00 2,942,067.00 2,916,666.51 25,400.49
General operating expenses 338,380.00 341,226.00 344,167.53 (2,941.53)
Internal service expense 156,554.00 156,554.00 177,232.49 (20,678.49)
Material and supplies 1,184,864.00 1,246,217.16 1,072,124.47 174,092.69
Personnel services 299,072.00 299,072.00 237,919.68 61,152.32
Special projects expense 250,000.00 440,000.00 371,925.02 68,074.98
Total current 5,095,411.00 5,425,136.16 5,120,035.70 305,100.46
Debt service:
Principal 555,000.00 555,000.00 555,000.00 -
Interest 408,282.00 408,282.00 408,281.26 0.74
Total debt service 963,282.00 963,282.00 963,281.26 0.74
Capital outlay:
Capital Improvement Projects 6,999,500.00 6,899,500.00 3,165,677.38 3,733,822.62
Equipment 300,500.00 375,774.84 368,889.98 6,884.86
Total capital outlay 7,300,000.00 7,275,274.84 3,534,567.36 3,740,707.48
Total expenditures 13,358,693.00 13,663,693.00 9,617,884.32 4,045,808.68
Excess (deficiency) of revenues over expenditures (6,834,862.00) (7,139,862.00) (3,074,390.78) 4,065,471.22
OTHER FINANCING SOURCES (USES)
Special assessments 724.00 724.00 384.04 (339.96)
Asset disposition 55,000.00 55,000.00 75,173.33 20,173.33
Transfers in 6,649,500.00 6,649,500.00 3,084,593.69 (3,564,906.31)
Total other financing source (uses) 6,705,224.00 6,705,224.00 3,160,151.06 (3,545,072.94)
Net change in fund balances (129,638.00) (434,638.00) 85,760.28 520,398.28
Fund balances - beginning 5,230,501.60 5,230,501.60 5,230,501.60 -
Fund balances - ending $ 5,100,863.60 $ 4,795,863.60 $ 5,316,261.88 $ 520,398.28
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ 29,715.00 $ 38,340.21 $ 8,625.21
Residential charges 2,440,600.00 2,440,600.00 2,466,605.17 26,005.17
Commerical charges 38,000.00 38,000.00 39,858.47 1,858.47
Transfer station charges 705,083.00 705,083.00 843,533.15 138,450.15
Other fees and charges 99,000.00 99,000.00 71,274.77 (27,725.23)
Miscellaneous 43,000.00 43,000.00 37,781.68 (5,218.32)
Investment revenue 5,000.00 5,000.00 24,199.00 19,199.00
Total revenues 3,330,683.00 3,360,398.00 3,521,592.45 161,194.45
EXPENDITURES
Current:
Contractual services 1,080,939.00 1,119,015.42 1,092,088.82 26,926.60
General operating expenses 9,450.00 10,157.32 10,571.63 (414.31)
Internal service expense 417,174.00 417,174.00 453,431.31 (36,257.31)
Material and supplies 280,760.00 293,104.26 214,725.22 78,379.04
Personnel services 1,145,580.00 1,145,580.00 1,080,925.14 64,654.86
Special projects expense 56,824.00 96,450.00 85,128.74 11,321.26
Total current 2,990,727.00 3,081,481.00 2,936,870.86 144,610.14
Debt service:
Administrative charges 450.00 450.00 265.00 185.00
Issuance cost - 58,751.00 58,750.63 0.37
Principal 193,174.00 193,174.00 193,173.73 0.27
Interest 29,248.00 106,574.00 106,572.20 1.80
Total debt service 222,872.00 358,949.00 358,761.56 187.44
Capital outlay:
Capital Improvement Projects - 3,888,872.00 3,748,649.56 140,222.44
Equipment 3,000.00 345,650.00 342,650.00 3,000.00
Total capital outlay 3,000.00 4,234,522.00 4,091,299.56 143,222.44
Total expenditures 3,216,599.00 7,674,952.00 7,386,931.98 288,020.02
Excess (deficiency) of revenues over expenditures 114,084.00 (4,314,554.00) (3,865,339.53) 449,214.47
OTHER FINANCING SOURCES (USES)
Bond proceeds - - 3,206,772.40 3,206,772.40
Asset disposition - - 164,033.13 164,033.13
Transfers in - - 846,500.00 846,500.00
Total other financing source (uses) - - 4,217,305.53 4,217,305.53
SPECIAL ITEMS
Total special items - - - -
Net change in fund balances 114,084.00 (4,314,554.00) 351,966.00 4,666,520.00
Fund balances - beginning 228,020.70 228,020.70 228,020.70 -
Fund balances - ending $ 342,104.70 $ (4,086,533.30) $ 579,986.70 $ 4,666,520.00
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Concession revenues $ 38,600.00 $ 38,600.00 $ 40,900.74 $ 2,300.74
Usage fees 495,206.00 495,206.00 488,628.00 (6,578.00)
Miscellaneous - - 778.39 778.39
Investment revenue 500.00 500.00 724.09 224.09
Total revenues 534,306.00 534,306.00 531,031.22 (3,274.78)
EXPENDITURES
Current:
Contractual services 35,337.00 30,803.21 29,192.52 1,610.69
General operating expenses 11,290.00 3,230.00 2,449.98 780.02
Internal service expense 41,837.00 41,837.00 46,349.78 (4,512.78)
Material and supplies 118,027.00 132,420.79 115,361.20 17,059.59
Personnel services 375,916.00 374,116.00 375,562.49 (1,446.49)
Special projects expense 7,500.00 7,500.00 2,971.06 4,528.94
Total current 589,907.00 589,907.00 571,887.03 18,019.97
Debt service:
Principal 34,184.00 34,184.00 34,183.68 0.32
Interest 3,083.00 3,083.00 3,082.88 0.12
Total debt service 37,267.00 37,267.00 37,266.56 0.44
Capital outlay:
Total capital outlay - - - -
Total expenditures 627,174.00 627,174.00 609,153.59 18,020.41
Excess (deficiency) of revenues over expenditures (92,868.00) (92,868.00) (78,122.37) 14,745.63
OTHER FINANCING SOURCES (USES)
Asset disposition - - 13,600.28 13,600.28
Transfers in 92,868.00 92,868.00 95,044.30 2,176.30
Total other financing source (uses) 92,868.00 92,868.00 108,644.58 15,776.58
Net change in fund balances - - 30,522.21 30,522.21
Fund balances - beginning (25,522.21) (25,522.21) (25,522.21) -
Fund balances - ending $ (25,522.21) $ (25,522.21) $ 5,000.00 $ 30,522.21
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 225.00 $ 225.00
Concession revenues 81,728.00 81,728.00 62,589.49 (19,138.51)
Usage fees 339,181.00 339,181.00 327,144.80 (12,036.20)
Miscellaneous 300.00 300.00 256.80 (43.20)
Investment revenue 500.00 500.00 836.71 336.71
Total revenues 421,709.00 421,709.00 391,052.80 (30,656.20)
EXPENDITURES
Current:
Contractual services 39,043.00 44,953.00 52,295.87 (7,342.87)
General operating expenses 3,232.00 1,557.00 2,417.30 (860.30)
Internal service expense 38,414.00 38,414.00 37,089.95 1,324.05
Material and supplies 196,990.00 209,840.45 197,721.45 12,119.00
Personnel services 623,480.00 623,480.00 617,043.49 6,436.51
Special projects expense 75,110.00 88,318.55 83,930.84 4,387.71
Total current 976,269.00 1,006,563.00 990,498.90 16,064.10
Debt service:
Principal 22,359.00 22,359.00 21,282.01 1,076.99
Interest 2,017.00 2,017.00 3,093.90 (1,076.90)
Total debt service 24,376.00 24,376.00 24,375.91 0.09
Capital outlay:
Capital improvement projects - 5,000.00 - 5,000.00
Total capital outlay - 5,000.00 - 5,000.00
Total expenditures 1,000,645.00 1,035,939.00 1,014,874.81 21,064.19
Excess (deficiency) of revenues over expenditures (578,936.00) (614,230.00) (623,822.01) (9,592.01)
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 7,259.67 7,259.67
Transfers in 574,936.00 672,018.00 573,737.54 (98,280.46)
Total other financing source (uses) 574,936.00 672,018.00 580,997.21 (91,020.79)
Net change in fund balances (4,000.00) 57,788.00 (42,824.80) (100,612.80)
Fund balances - beginning 47,824.80 47,824.80 47,824.80 -
Fund balances - ending $ 43,824.80 $ 105,612.80 $ 5,000.00 $ (100,612.80)
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 685,500.00 $ 685,500.00 $ 685,500.00 $ -
Investment revenue 1,250.00 1,250.00 1,654.47 404.47
Total revenues 686,750.00 686,750.00 687,154.47 404.47
EXPENDITURES
Current:
Contractual services 217,032.00 238,532.00 265,946.01 (27,414.01)
General operating expenses 6,950.00 6,950.00 5,305.90 1,644.10
Material and supplies 75,300.00 87,300.00 77,543.45 9,756.55
Personnel services 267,468.00 267,468.00 270,287.19 (2,819.19)
Total current 566,750.00 600,250.00 619,082.55 (18,832.55)
Capital outlay:
Equipment 120,000.00 108,000.00 87,880.00 20,120.00
Total capital outlay 120,000.00 108,000.00 87,880.00 20,120.00
Total expenditures 686,750.00 708,250.00 706,962.55 1,287.45
Excess (deficiency) of revenues over expenditures - (21,500.00) (19,808.08) 1,691.92
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances - (21,500.00) (19,808.08) 1,691.92
Fund balances - beginning 279,741.85 279,741.85 279,741.85 -
Fund balances - ending $ 279,741.85 $ 258,241.85 $ 259,933.77 $ 1,691.92
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 273.91 $ 273.91
Internal charges 1,425,769.00 1,425,769.00 1,548,174.62 122,405.62
Miscellaneous - - 442.89 442.89
Investment revenue 3,239.00 3,239.00 4,443.80 1,204.80
Total revenues 1,429,008.00 1,429,008.00 1,553,335.22 124,327.22
EXPENDITURES
Current:
Contractual services 240,415.00 267,446.57 264,381.21 3,065.36
General operating expenses 4,350.00 5,980.01 5,957.75 22.26
Internal service expense 6,852.00 6,852.00 6,852.00 -
Material and supplies 494,135.00 565,203.35 540,480.08 24,723.27
Personnel services 683,256.00 678,671.13 672,257.62 6,413.51
Total current 1,429,008.00 1,524,153.06 1,489,928.66 34,224.40
Capital outlay:
Equipment - 11,854.94 11,854.94 -
Total capital outlay - 11,854.94 11,854.94 -
Total expenditures 1,429,008.00 1,536,008.00 1,501,783.60 34,224.40
Excess (deficiency) of revenues over expenditures - (107,000.00) 51,551.62 158,551.62
OTHER FINANCING SOURCES (USES)
Asset disposition 16,168.00 16,168.00 18,215.91 2,047.91
Transfers out (16,168.00) (16,168.00) (20,080.91) (3,912.91)
Total other financing source (uses) - - (1,865.00) (1,865.00)
Net change in fund balances - (107,000.00) 49,686.62 156,686.62
Fund balances - beginning 159,240.09 159,240.09 159,240.09 -
Fund balances - ending $ 159,240.09 $ 52,240.09 $ 208,926.71 $ 156,686.62
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 20,000.00 $ 20,000.00 $ 17,576.29 $ (2,423.71)
Internal charges 3,575,604.00 3,575,604.00 3,807,354.32 231,750.32
Miscellaneous - - 600.75 600.75
Investment revenue 25,000.00 25,000.00 32,125.38 7,125.38
Total revenues 3,620,604.00 3,620,604.00 3,857,656.74 237,052.74
EXPENDITURES
Current:
Contractual services 3,593,007.00 3,785,473.00 3,843,336.80 (57,863.80)
General operating expenses - 1,600.00 1,582.07 17.93
Material and supplies - 5,000.00 1,567.03 3,432.97
Special projects expense - 934.00 933.92 0.08
Total current 3,593,007.00 3,793,007.00 3,847,419.82 (54,412.82)
Total expenditures 3,593,007.00 3,793,007.00 3,847,419.82 (54,412.82)
Excess (deficiency) of revenues over expenditures 27,597.00 (172,403.00) 10,236.92 182,639.92
OTHER FINANCING SOURCES (USES)
Transfers out (27,597.00) (27,597.00) (25,161.86) 2,435.14
Total other financing source (uses) (27,597.00) (27,597.00) (25,161.86) 2,435.14
Net change in fund balances - (200,000.00) (14,924.94) 185,075.06
Fund balances - beginning 2,283,416.86 2,283,416.86 2,283,416.86 -
Fund balances - ending $ 2,283,416.86 $ 2,083,416.86 $ 2,268,491.92 $ 185,075.06
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 520,700.00 $ 520,700.00 $ 527,497.73 $ 6,797.73
Investment revenue 17,750.00 17,750.00 16,411.24 (1,338.76)
Total revenues 538,450.00 538,450.00 543,908.97 5,458.97
EXPENDITURES
Current:
Contractual services 485,950.00 835,950.00 917,929.63 (81,979.63)
General operating expenses 50,000.00 50,000.00 45,599.37 4,400.63
Material and supplies 2,500.00 2,500.00 - 2,500.00
Total current 538,450.00 888,450.00 963,529.00 (75,079.00)
Total expenditures 538,450.00 888,450.00 963,529.00 (75,079.00)
Excess (deficiency) of revenues over expenditures - (350,000.00) (419,620.03) (69,620.03)
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances - (350,000.00) (419,620.03) (69,620.03)
Fund balances - beginning 1,574,491.54 1,574,491.54 1,574,491.54 -
Fund balances - ending $ 1,574,491.54 $ 1,224,491.54 $ 1,154,871.51 $ (69,620.03)
Budgeted Amounts
See Independent Auditors' Report.
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, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 4,434.90 $ 4,434.90
Internal charges 339,604.00 339,604.00 331,050.17 (8,553.83)
Investment revenue 12,500.00 12,500.00 16,996.16 4,496.16
Total revenues 352,104.00 352,104.00 352,481.23 377.23
EXPENDITURES
Current:
Material and supplies - 7,200.75 6,688.25 512.50
Total current - 7,200.75 6,688.25 512.50
Capital outlay:
Equipment 449,016.00 441,815.25 317,846.89 123,968.36
Total capital outlay 449,016.00 441,815.25 317,846.89 123,968.36
Total expenditures 449,016.00 449,016.00 324,535.14 124,480.86
Excess (deficiency) of revenues over expenditures (96,912.00) (96,912.00) 27,946.09 124,858.09
OTHER FINANCING SOURCES (USES)
Asset disposition 43,500.00 43,500.00 29,451.88 (14,048.12)
Transfers in - - 3,900.00 3,900.00
Transfers out - (8,224.00) (8,225.60) (1.60)
Total other financing source (uses) 43,500.00 35,276.00 25,126.28 (10,149.72)
Net change in fund balances (53,412.00) (61,636.00) 53,072.37 114,708.37
Fund balances - beginning 1,392,644.16 1,392,644.16 1,392,644.16 -
Fund balances - ending $ 1,339,232.16 $ 1,331,008.16 $ 1,445,716.53 $ 114,708.37
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
General Equipment Replacement Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 185,000.00 $ 185,000.00 $ 193,658.63 $ 8,658.63
Miscellaneous - - 16,800.00 16,800.00
Investment revenue - - 5,364.00 5,364.00
Total revenues 185,000.00 185,000.00 215,822.63 30,822.63
EXPENDITURES
Current:
Development services 111,000.00 111,000.00 117,000.00 (6,000.00)
Total current 111,000.00 111,000.00 117,000.00 (6,000.00)
Capital outlay:
Capital Improvements 344,200.00 344,200.00 - 344,200.00
Total capital outlay 344,200.00 344,200.00 - 344,200.00
Total expenditures 455,200.00 455,200.00 117,000.00 338,200.00
Excess (deficiency) of revenues over expenditures (270,200.00) (270,200.00) 98,822.63 369,022.63
OTHER FINANCING SOURCES (USES)
Transfers in 185,000.00 185,000.00 192,176.57 7,176.57
Total other financing source (uses) 185,000.00 185,000.00 192,176.57 7,176.57
Net change in fund balances (85,200.00) (85,200.00) 290,999.20 376,199.20
Fund balances - beginning 365,168.26 365,168.26 365,168.26 -
Fund balances - ending $ 279,968.26 $ 279,968.26 $ 656,167.46 $ 376,199.20
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Riverfront Region Economic Development Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ - $ - $ 2,020,221.77 $ 2,020,221.77
Investment revenue - - 3,664.63 3,664.63
Total revenues - - 2,023,886.40 2,023,886.40
EXPENDITURES
Debt service:
Interest - - 1.76 (1.76)
Total debt service - - 1.76 (1.76)
Capital outlay:
Capital Improvements - 5,000.00 290.63 4,709.37
Total capital outlay - 5,000.00 290.63 4,709.37
Total expenditures - 5,000.00 292.39 4,707.61
Excess (deficiency) of revenues over expenditures - (5,000.00) 2,023,594.01 2,028,594.01
OTHER FINANCING SOURCES (USES)
Total other financing source (uses) - - - -
Net change in fund balances - (5,000.00) 2,023,594.01 2,028,594.01
Fund balances - beginning - - - -
Fund balances - ending $ - $ (5,000.00) $ 2,023,594.01 $ 2,028,594.01
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax V Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2016
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
131
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
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 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, 2016. The City of Cape Girardeau, Missouri’s major federal programs
are identified in the summary of auditors’ res ults section of the accompanying Schedule of
Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards 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 the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Those standards and the Uniform Guidance 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.
132
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, 2016.
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 the Uniform Guidance, 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 the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
February 13, 2017
133
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, 2016, 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 13, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Cape
Girardeau, Missouri’s internal control over financial reporting (internal control) to determine the
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City of Cape Girardeau, Missouri’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City of Cape Girardeau, Missouri’s internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or 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. 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.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses, or significant deficiencies. Given these limitations, during our audit we did
134
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Cape Girardeau, Missouri’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the 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 13, 2017
Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number
U.S. DEPARTMENT OF DEFENSE:
Loan of DOD Property (non-cash)12.UNKNOWN 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 2008-DN-02 2,857$
2013-ED-03 3,707 6,564$
Passed Through Missouri Housing
Development Commission -
Emergency Solutions Grant Program 14.231 15-711-E 100,526$
16-719-E 38,973 139,499
TOTAL U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT 146,063$
U.S. DEPARTMENT OF INTERIOR:
Passed Through Missouri Department of
Natural Resources
Historic Preservation Fund Grants-In-Aid 15.904 29-15-131224-009 30,500$
U.S. DEPARTMENT OF JUSTICE:
Passed Through the City of Poplar Bluff, Missouri -
Passed through the Southeast Missouri Drug
Task Force -
Public Safety Partnership and Community
Policing Grants 16.710 N/A 3,268$
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 2014-DJ-BX-0507 21,342$
2015-DJ-BX-0796 4,000 25,342
TOTAL U.S. DEPARTMENT OF JUSTICE 28,610$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2016
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
135
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 14-077A-1 3,190$
14-077A-2 9,615
15-077A-1 63,992 76,797$
Highway Planning and Construction 20.205 DP-1500(020)391,404$
ER-1518(005)304,779
SRTS-INF-H31H(103)159,688
STP-1500(022)15,782
MO-81-0013 35,893 907,546
Highway Safety Cluster:
State and Community Highway Safety (1)20.600 15-PT-02-099 3,422$
15-SA-09-001 21,009
16-SA-09-004 46,322
15-CP-09-001 91,961
16-CP-09-005 57,635 220,349
National Priority Safety Programs (1)20.616 16-M2OP-05-006 2,427$
15-M2HVE-05-022 932
16-M2HVE-05-002 67
16-M3DA-04-011 19,441
16-M5HVE-03-082 10,463 33,330
Total Highway Safety Cluster 253,679
Alcohol Open Container Requirements 20.607 15-154-AL-072 1,297$
15-154-AL-075 3,329
16-154-AL-137 5,479 10,105
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 1,248,127$
ENVIRONMENTAL PROTECTION AGENCY:
Passed Through Missouri Department of Natural
Resources -
Capitalization Grants for Clean Water State
Revolving Funds (1)66.458 C295531-03 3,532,588$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2016
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
136
Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number
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 1,403$
Passed Through the Missouri Department of
Health and Human Services
Assistance Programs for Chronic Disease
Prevention and Control 93.945 5U58DP004817-02 464
TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 1,867$
U.S. DEPARTMENT OF HOMELAND SECURITY:
Passed Through the Missouri State Emergency
Management Agency
Disaster Grants - Public Assistance (Presidentially
Declared Disasters 97.036 FEMA-4250-DR-MO 77,482$
Assistance to Firefighters Grant 97.044 EMW-2014-FO-03760 40,910
Passed Through Missouri Office of
Homeland Security - Homeland Security
Grant Program 97.067 EMW-2013-SS-00023-S01-013-5761 3,643$
EMW-2014-SS-00002-S01-011 27,096
EMW-2014-SS-00002-S01-011A 8,040 38,779
Law Enforcement Officer Reimbursement
Agreement Program 97.090 HSTS0213HSLR706 29,100
TOTAL U.S. DEPARTMENT OF HOMELAND
SECURITY 186,271$
TOTAL FEDERAL AWARDS 5,274,026$
(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.
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138
City of Cape Girardeau, Missouri
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2016
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Purpose of Schedule and Reporting Entity:
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”)
includes the federal award activity of the City of Cape Girardeau, Missouri under
programs of the federal government for the year ended June 30, 2016. The information
in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule
presents only a selected portion of the operations of the City, it is not intended to and
does not present the financial position, changes in net assets, or cash flows of the City of
Cape Girardeau, Missouri
B. Basis of Presentation:
The Schedule is presented in accordance with the Uniform Guidance, 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.
D. Indirect Cost Rate:
The City’s grant programs involve reimbursement of the City’s actual costs of
administering the programs, and therefore, the City is not reimbursed for indirect costs
and does not apply any indirect cost rate.
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City of Cape Girardeau, Missouri
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2016
1. SUMMARY OF AUDITORS’ RESULTS:
Financial Statements
Type of report issued on whether the financial statements
audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weaknesses identified? yes X__ no
Significant deficiencies identified? ____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 federal programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516 (A)? 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
Highway Safety Cluster:
20.600 State and Community Highway Safety
20.616 National Priority Safety Programs
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low-risk auditee: yes X no
2. FINANCIAL STATEMENT FINDINGS:
No findings were noted that are required to be reported.
3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS:
No findings or questioned costs were noted that are required to be reported.
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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:
2015-001 SIGNIFICANT AUDIT ADJUSTMENTS
Criteria: 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.
Recommendation: Management should take steps to ensure all capital
assets are appropriately capitalized in the financial
statements.
Status: Implemented.
2. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS:
No Federal findings were reported in the prior year.