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CITY OF CAPE GIRARDEAU, MISSOURI
Cape Girardeau, Missouri
For the Year Ended June 30, 2018
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 FIDUCIARY NET POSITION 36
NOTES TO BASIC FINANCIAL STATEMENTS 37-81
REQUIRED SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL 82
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – AIRPORT 83
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK & RECREATION 84
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CASINO REVENUE 85
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX TRUST
FUND V 86
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL CAPITAL IMPROVEMENTS 87
NOTES TO BUDGETARY COMPARISON SCHEDULES 88-91
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – GENERAL DIVISION 92
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – POLICE DIVISION 93
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – FIRE DIVISION 94
SCHEDULE OF EMPLOYER CONTRIBUTIONS 95
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB
LIABILITY AND RELATED RATIOS 96
SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK STORM WATER SALES TAX – CAPITAL 97
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX –
WATER SYSTEM IMPROVEMENTS 98
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CONVENTION AND TOURISM 99
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – DOWNTOWN BUSINESS DISTRICT 100
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HEALTH 101
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – MOTOR FUEL TAX 102
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX
TRUST FUND I 103
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX –
SEWER SYSTEM IMPROVEMENTS 104
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST FUND II 105
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FIRE SALES TAX FUND 106
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST FUND 107
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – STREET CAPITAL IMPROVEMENTS 108
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK CAPITAL IMPROVEMENTS 109
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – COMMUNITY DEVELOPMENT BLOCK
GRANT PROJECTS 110
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGE IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX TRUST
FUND III 111
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK/STORM WATER SALES TAX 112
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HOUSING DEVELOPMENT GRANT FUND 113
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – STP-URBAN GRANT PROJECT FUND 114
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SEWER 115
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WATER 116
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SOLID WASTE 117
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GOLF COURSE 118
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SPORTING COMPLEXES 119
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – INDOOR SPORTS COMPLEX FUND 120
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – INFORMATION TECHNOLOGY 121
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FLEET MANAGEMENT 122
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – EMPLOYEE BENEFITS 123
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WORKER’S COMPENSATION 124
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL EQUIPMENT REPLACEMENT 125
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – RIVERFRONT REGION ECONOMIC
DEVELOPMENT 126
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX IV FUND 127
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 128-129
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 130-131
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 132-134
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 135
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 136-137
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 138
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, 2018, 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, 2018, 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 82 through 96 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Cape Girardeau, Missouri’s basic financial statements. The
budgetary comparison fund financial statements are presented for purposes of additional analysis
and are not a required part of the basic financial statements. The schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by 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 basic
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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 8, 2019, 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
solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the City of Cape Girardeau, Missouri’s 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 8, 2019
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, 2018. 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
$343,178,003.70 (net position). Of this
amount, $48,392,827.99 (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 $36,189,612.68.
Approximately 8.8% of this total amount,
$3,187,972.46 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 $3,214,828.54 or 10.5% of total general
fund expenditures and transfers.
At the end of the current fiscal year, general
fund balance reserved for emergencies was
$3,650,000.00 or 12.0% of total general fund
expenditures and transfers.
o The City’s total long-term debt decreased by
$13,890,443.37 (11.1%) during the current
fiscal year as a result of $10,680,894.89 in
amortization and regularly scheduled
principal payments and the $3,209,548.48
early payoff of a Missouri Transportation
Finance Corporation loan. The Missouri
Transportation Finance Corporation loan was
used to finance costs of a new bridge on
Sprigg Street. Federal emergency relief funds
received by the City for this project and STP-
U grant funds were used as funding sources
for this prepayment.
o The City’s fixed assets increased
$13,153,735.34 during the year. Net fixed
asset additions of $29,262,868.09 were made
during the year. Depreciation for the current
fiscal year reduced fixed assets by
$16,109,132.75.
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, liabilities and deferred inflows, with
the difference between the total of assets and
deferred outflows and liabilities and deferred
inflows reported as net position. Over time,
increases or decreases in net position may serve
as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities presents information
showing how the City’s net position changed
during the most recent fiscal year. All changes
in the net position are reported as soon as the
underlying event giving rise to the change
occurs, regardless of the timing of the related
cash flows. Thus, revenues and expenses are
reported in the statement for some items that will
only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused
vacation leave).
CITY OF CAPE GIRARDEAU, MISSOURI
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Both of the government-wide financial
statements distinguish functions of the City of
Cape Girardeau that are principally supported by
taxes and intergover1nmental 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 o f 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, indoor
sports complex 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
statement, governmental fund financial
statements focus on near-term inflows and
outflows of spendable resources, as well as on
balances of spendable resources available at the
end of the fiscal year. Such information may be
useful in evaluating a government’s near -term
financing requirements.
Because the focus of the governmental funds is
narrower than that of the government-wide
financial statements, it is useful to compare the
information presented for governmental funds
with similar information presented for
governmental activities in the government-wide
financial statements. By doing so, readers may
better understand the long-term impact of the
government’s near term financing decisions.
Both the governmental fund balance sheet and
the governmental fund statement of revenues,
expenditures, and changes in fund balances
provide a reconciliation to facilitate this
comparison between governmental funds and
governmental activities.
The City of Cape Girardeau maintained 33
individual governmental funds during the current
year. 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 V, casino revenue, 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, indoor sports complex, and sports
complexes operations. Internal service funds are
an accounting device used to accumulate and
allocate costs internally among the City’s various
functions. The City uses internal service funds
to account for operation of its information
technology systems, fleet management, self-
insured employee benefits and workmen’s
compensation programs, and its internal
equipment leasing program.
Proprietary funds provide the same type of
information as the government-wide financial
statements, only in more detail. The proprietary
fund financial statements provide separate
information for the sewer, water, and solid waste
utilities and golf course, indoor sports complex,
and sports complexes operations. All of these
are considered, or have been designated, to be
major funds of the City.
CITY OF CAPE GIRARDEAU, MISSOURI
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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 $343,178,003.70, an increase of
$5,527,372.47 (1.6%). The City’s net investment
in capital assets (land, buildings, machinery, and
equipment less related outstanding debt used to
acquire those assets) of $285,909,867.19 makes
up 83.3% of the City’s net position.
This net investment increased $21,622,592.53
(8.2%) 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 net
investment in capital assets increased, 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 position
(2.6 percent) represent resources that are subject
to external restrictions on how they may be used.
The portion of the City’s net position subject to
external restrictions was $120,243.16 (1.3%) less
than the previous year. The remaining balance of
net position ($48,392,827.99) is unrestricted and
may be used to meet the City’s ongoing
obligations to citizens and creditors. This reflects
a $15,974,976.90 (24.8%) 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 position, 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
2018 2017 2018 2017 2018 2017
Current and other assets 54,620,276.39 67,866,115.82 24,337,864.97 21,983,253.07 78,958,141,36 89,849,368,89
Capital assets 214,426,896.42 200,294,777.44 183,404,762.85 184,383,146.49 397,831,659.27 384,677,923.93
Total assets 269,047,172.81 268,160,893.26 207,742,627.82 206,366,399.56 476,789,800.63 474,527,292.82
Deferred outflows 1,506,790.09 3,789,027.74 171,464.91 521,245.26 1,678,255.00 4,310,273.00
Current liabilities 7,027,497.34 13,761,785.95 9,038,991.97 7,892,886.76 16,066,489.31 21,654,672.71
Non-current liabilities 39,864,830.39 37,158,022.65 74,988,684.23 80,864,388.23 114,853,514.62 118,022,410.88
Total liabilities 46,892,327.73 50,919,808.60 84,027,676.20 88,757,274.99 130,920,003.93 139,677,083.59
Deferred inflows 3,764,616.88 1,303,412.38 605,431.12 206,438.62 4,370,048.00 1,509,851.00
Net investment in
Capital assets 183,312,356.37 166,215,653.09 102,597,510.82 98,071,621.57 285,909,867.19 264,287,274.66
Restricted 5,131,533.52 5,655,975.68 3,743,775.00 3,339,576.00 8,875,308.52 8,995,551.68
Unrestricted 31,453,128.40 47,855,071.25 16,939,699.59 16,512,733.64 48,392,827.99 64,367,804.89
Total net position 219,897,018.29 219,726,700.02 123,280,985.41 117,923,931.21 343,178,003.70 337,650,631.23
CITY OF CAPE GIRARDEAU, MISSOURI
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Governmental Activities. Governmental activities increased the City of Cape Girardeau’s net position by
$8,059.944.27 (compared to $428,082.32 in the previous fiscal year) thereby accounting for 56.7 percent of the total
growth in the net position of the City. Governmental activities accounted for 47.1% of its $17,096,703.28 increase in
in its net investment in capital assets.
City of Cape Girardeau's Change in Net Position
Governmental Business-type
activities activities Total
2018 2017 2018 2017 2018 2017
Revenues:
Program revenue:
Charges for service 5,332,343.09 5,335,160.30 20,171,295.32 19,637,253.23 25,503,638.41 24,972,413.53
Operating grants and
contributions 1,102,412.39 1,261,707.48 5,626.05 50,782.31 1,108,038.44 1,312,489.79
Capital grants and
contributions 6,102,909.51 4,258,862.29 1,434,523.60 739,265.15 7,537,433.11 4,998,127.44
General revenues:
Property taxes 2,489,086.94 2,313,211.37 - - 2,489,086.94 2,313,211.37
Sales taxes 28,666,729.38 27,999,068.29 - - 28,666,729.38 27,999,068.29
Other taxes 13,852,287.24 13,488,741.93 - - 13,852,287.24 13,488,741.93
Other 887,314.71 1,152,595.07 144,443.41 233,984.81 1,031,758.12 1,414,946.24
Total revenues 58,433,083.26 55,809,346.73
21,755,888.38
20,661,285.50 80,188,971.64 76,470,632.23
Expenses:
Administrative 3,192,426.65 3,102,613.20 - - 3,192,426.65 3,102,613.20
Capital Improvements 111,187.90 72,735.14 - - 111,187.90 72,735.14
Development Services 6,341,496.75 6,338,981.22 - - 6,341,496.75 6,338,981.22
Interest and other costs 903,735.34 1,039,724.50 - - 903,735.34 1,039,724.50
Parks and Recreation 5,939,357.84 5,832,841.22 - - 5,939,357.84 5,832,841.22
Public Safety 16,949,952.13 15,548,817.01 - - 16,949,952.13 15,548,817.01
Public Works 7,598,140.69 8,349,564.88 - - 7,598,140.69 8,349,564.88
Sewer - - 10,018,537.41 10,492,810,74 10,018,537.41 10,492,810,74
Water - - 7,643,554.28 7,427,137.82 7,643,554.28 7,427,137.82
Solid Waste - - 4,229,339.80 4,156,251.98 4,229,339.80 4,156,251.98
Golf Course - - 688,354.89 775,372.59 688,354.89 775,372.59
Indoor Sports Complex - - 1,040,273.66 362,363.73 1,040,273.66 362,363.73
Sporting Complexes - - 1,327,348.33 1,247,334.26 1,327,348.33 1,247,334.26
Total expenses 41,036,297.30 40,285,277.17 24,947,408.37 24,461,271.12 65,983,705.67 64,746,548.29
Increase in net position
before transfers 17,396,785.96 15,524,069.56 ( (3,191,519.99) ( (3,799,985.62) 14,205,265.97 11,724,083.94
Transfers (9,336,841.69) (15,095,987.24)
9,336,841.69
15,095,987.24 - -
Increase in net position 8,059,944.27 428,082.32
6,145,321.70
11,296,001.62 14,205,265.97 11,724,083.94
Net position-beginning of year 219,726,700.02 224,116,212.57 117,923,931.21 101,565,927.36 337,650,631.23 325,682,139.93
Prior period adjustments
(7,889,626.00)
(4,817,594.87)
(788,267.50) 5,062,002.23 (8,677,893.50)
244,407.36
Net position-end of year 219,897,018.29 219,726,700.02
123,280,985.41
117,923,931.21 343,178,003.70 337,650,631.23
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 $2,817.21 (0.1%) less than the previous year. During the current year public works
and public safety revenues increased $27,898.87 (108.9%) and $48,604.64 (40.9%) over the previous year while
development services, administrative, and parks and recreation were $43,869.53 (2.8%), $32,198.20 (1.8%),
and $3,252.99 (0.2%), respectively, less than the previous year.
• Changes in public works service charges reflected a $27,898.87 (108.9%) increase in internal charges to City
business activities for charges related to capital projects and other projects.
• Changes in public safety service charges reflected a $44,026.69 (277.4%) increase in charges to the SEMO drug
task force.
• There were several significant changes in service charge revenue from development services. These included
revenue increases of $36,981.63 (77.9%), $12,610.74 (7.4%), $90,823.50 (29.7%) and $11,697.88 (4.0%),
respectively, in plan review fees, building related permit fees, airport fuel sales, and airport lease revenue and
revenue decreases of $173,848.26 (31.5%) and $24,142.25 (33.3%) in internal charges to other City projects
and airport landing fees. In December of the current year the air service provider at the airport changed.
Landing fees charged the new provider were significantly less than the previous provider.
• The current year’s decrease in administrative service revenue mainly resulted from a $121,551.46 (15.4%)
decrease in revenue from the municipal court which was only partially offset by an $88,680.00 (21.8%) increase
in administrative fees charged by its city manager, finance, and human resources divisions to the City’s
enterprise funds. Traffic cases handled by the municipal court declined 12.99% from the previous year. During
the current year administrative fees were charged to all enterprise funds. In the previous year only the sewer,
water, and solid waste funds were charged administrative fees.
• During the current year a $48,710.27 (20.0%) decrease in the City’s recreation program revenue was only
partially offset by revenues in the other divisions of park and recreation. The majority of this decrease resulted
from the transfer of some league activity to the new indoor sports complex which is reported as an enterprise
fund.
• Operating grants and contributions were $159,295.09 (12.6%) less than the previous year. During the current
year revenue from emergency shelter grants, various airport operating grants, and various housing rehab grants
decreased $21,291.05 (13.8%), $42,761.85 (71.6%), and $180,914.73 (100.0%), respectively, from the previous
year. These decreases were partially offset by a $74,295.13(12.8%) increase in public safety operating grants
and a $24,743.90 (51.0%) increase in operating contributions received by the Parks and Recreation Foundation.
• Capital grants and contributions increased $1,844,047.22 (43.3%) from the previous year. During the current
year the city received grants and contributions totaling $1,400,222.00, $1,687,867.92, $1,728,989.02 and
$1,062,188.96 for airport improvements, various street projects, a South Sprigg Street Bridge p roject, and
various public safety equipment purchases, respectively. During the previous year the city received grants and
contributions totaling $72,075.63, $975,321.77, $3,110,097.52 and $32,512.46, respectively, for these items.
The city also received contributions totaling $200,000.00 and $23,641.61 during the current year for future
improvements to the Capaha Park baseball field and the previous year’s cost of the Fountain Street Sculpture
Project. During the previous year the City received grants of $62,065.90 for the Mississippi Riverwalk trail
project, and $6,789.01 for the business park infrastructure project.
CITY OF CAPE GIRARDEAU, MISSOURI
9
Revenues from governmental activities (continued)
• Property tax revenue was $175,875.57 (7.6%) more than the previous year. Assessed values finalized by the
board of equalization increased $17,542,678 (3.5%) and $127,920 (0.1%) for real estate and personal property,
respectively. Assessed values from new construction and new annexation totaling $3,573,090 and $250,
respectively, were included in the real estate increase. The City’s general tax levy rate was set .1% lower than
the previous year. During the current year the city received payments in lieu of taxes totaling $98,590.19 from
properties included in two tax increment financing districts (TIF). These were included as property tax
revenues. This was the first year these payments have been collected. $64,054.95 of the TIF revenues collected
during the year was distributed during the year according to development agreements for projects in the district.
The undistributed TIF revenues are reflected as restricted net position in the Statement of Net Position.
• Sales tax revenue was 49.1% of the total revenue during the current year vs. 50.2% in the previous year. This
year’s revenue was $667,661.09 (2.4%) more than the previous year. From fiscal year ending June 30, 20 14
through fiscal year ending June 30, 2018 sales tax revenue, adjusted for new taxes, had annual growth rates of
0.7%, 3.7%, 2.5%,-1.3% and 2.4%, respectively.
• Other taxes increased $363,545.31 (2.7%) from the previous year. Franchise taxes, motor fuel taxes, convention
and tourism taxes, merchant licenses, and liquor licenses grew $315,401.99 (6.5%), $17,262.58 (1.1%),
$123,811.96 (5.6%), $24,844.41 (1.9%) and $644.98 (0.9%), respectively. Cigarette taxes and gaming revenue
declined $3,366.18 (2.2%) and $115,054.43 (3.4%), respectively, from the previous year.
• Ameren paid 72.1% of the total franchise tax collected during the year based on its electricity and natural gas
revenues vs. 68.2% in the previous year. During the current year Ameren paid $413,711.29 (12.5%) more than
the previous year. Payments received on electricity sales and natural gas sales increased $296,467.48 (10.8%)
and $117,243.81 (20.6%), respectively, during the current year. Average monthly electric and natural gas rates
were 4.3% and 6.9% higher during the current year when compared to the previous year. Colder winter and
warmer spring weather during the current year when compared to the previous year positive ly impacted
franchise tax revenues.
• During the current year the City received payments in lieu of gross receipt franchise taxes totaling $713,433.32
from its water and sewer funds. This was $18,124.26 (2.6%) more than the previous year. Sewer and water rate
increases of 2% were effective July 1, 2017.
• Franchise tax paid during the current year by the City’s telecommunication and cable TV service providers
decreased $100,110.30 (23.8%) and $16,323.26 (3.8%) from the previous year. During the previous year the
City received $97,214.73 from a settlement of a class action lawsuit against a cell phone service provider.
• The increase in the convention and tourism taxes was comprised of increases to both taxes. Hotel / motel taxes
and restaurant taxes increased $65,808.49 (9.0%) and $58,003.47 (3.9%) over the previous year. A new Drury
Lodge and Convention Center began operations in August 2017.
• Gaming revenue received by the casino revenue fund and the riverfront development fund decreased
$110,987.48 (3.5%) and $4,066.95 (2.7%) from the previous year.
• Other revenue which declined $265,280.36 (23.0%) from the previous year to $887,314.71 was comprised of
unrestricted grants and contributions, investment earnings and gain (loss) on disposal of assets which totaled
$62,548.94, $421,853.37, and $402,912.40, respectively, during the current year. These revenues grew
(declined) $1,722.33 (2.8%), ($80,009.68) (15.9%), and ($186,993.01) (31.7%), respectively, from the previous
year. Pooled cash balances averaged $42,393,008.09 during the current year compared to $63,135,327.68
during the previous year as cash held for capital projects was spent during the year. The pooled cash balances
earned an average rate of 1.58% during the current year compared to 1.21% in the previous year. During the
current year the City sold its old fire station #4 and a piece of surplus land at gains of $155,650.00 and
$25,548.46. The remaining gain or loss totaling $221,713.94 resulted from sales or other d isposal of city
equipment above their book value.
CITY OF CAPE GIRARDEAU, MISSOURI
10
Expenses from governmental activities
• Total government activities expenses increased $751,020.13 (1.9%) over the previous year. Personnel costs
accounted for 52.2% of the total governmental activity expenses. Operating expenses, capital improvement
expenses and interest and other costs accounted for 45.3%, 0.3% and 2.2% of the total governmental activity
expenses, respectively. 27.5% of the personnel costs were for benefits and the remaining was for salaries
including vacation and sick leave expense. Salary expenses increased $297,579.62 (2.0%) while benefits
expenses decreased $363,011.99 (5.8%) during the current year. Operating expenses, capital improvement
expenses and interest and other costs increased (decreased) $913,988.90 (5.2%), $38,452.76 (52.9%) and
($135,989.16) (13.1%), respectively, during the current year.
• Full-time, part-time and overtimes salaries increased $90,943.27 (0.7%), $53,290.10 (4.6%) and $153,346.25
(18.0%), respectively, over the previous year during the current 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,
2018 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 $434,701.63 as a result of these changes. In the previous year pension expense was
increased $1,062,115.61 as a result of these changes. Adjusted pension costs were $496,126.51 (22.0%) less
than the previous year.
• During the current year the City implemented GASB 75 to report its retiree health and dental benefits (OPEB).
A GASB 75 actuarial valuation of the City’s OPEB for the fiscal year ending June 30, 2018 was performed by
Nyhart of Indianapolis Indiana. Their valuation reflected current year changes to the City’s net OPEB assets
(liabilities) and net OPEB deferred outflows (inflows) according to GASB 75. The annual retiree health and
dental costs included in the governmental activities equals the City’s actual premiums paid plus or minus
changes in its net OPEB assets (liabilities) and net OPEB deferred outflows (inflows) reflected by their
valuation. The current year’s retiree health and dental costs included in the governmental activities were
decreased by $47,886.79 as a result of these changes. In the previous year retiree’s health and dental costs
included in the governmental activities were increased by $137,187.00 as a result of reporting under GASB 45.
Adjusted OPEB costs were $160,146.53 (23.8%) less 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 $55,727.39 (3.4%) and $214,317.82 (55.6%),
respectively, during the current year. During the previous year the cost of these plans decreased $235,004.50
(11.5%) and $409,713.73 (51.5%), respectively.
• Administrative expenses totaled $3,192,426.65 (7.8% of total government activities) this year which was
$89,813.45 (2.9%) more than the previous year. Personnel costs accounted for 64.2% of the total administrative
expenses. 24.5% of the personnel costs were for benefits and the remaining was for salaries including vacation
and sick leave expense. Salary expenses increased $33,342.40 (2.2%) during the current year. Benefit expenses
decreased $35,862.65 (6.7%) during the current year. The current year’s costs of providing pension benefits,
employee health and dental coverage, retiree health and dental coverage and workmen’s compensation coverage
were $153,410.35, $153,246.80, $51,004.18 and $7,612.41, respectively. These costs increased (decreased)
($60,703.90) (39.6%), 2,510.79 (1.6%), $16,533.26 (32.4%) and $3,000.56 (39.4%), respectively from the
previous year. Operating expenses increased $92,333.70 (8.8%) during the current year. The current year
included $34,978.64 in costs for a City Hall space needs assessment and $39,081.26 in election costs associated
with City council elections. No costs were incurred for these items in the previous year. All remaining operating
expenses increased $18,273.80 (1.7%) during the current year.
CITY OF CAPE GIRARDEAU, MISSOURI
11
Expenses from governmental activities (continued)
• Development services expenses totaled $6,341,496.75 (15.4% of total government activities) this year which
was $2,515.53 more than the previous year. Personnel costs accounted for 41.9% of the total development
services expenses. 26.7% of the personnel costs were for benefits and the remaining was for salaries including
vacation and sick leave expense. Salary expenses increased $17,147.46 (0.9%) during the current year. Benefit
expenses increased $56,960.55 (8.7%). The current year’s costs of providing pension benefits, employee health
and dental coverage, retiree health and dental coverage, and workmen’s compensation coverage were
$188,293.52, $232,763.74, $72,370.80 and $59,229.11, respectively. These costs increased (decreased)
($44,546.10) (19.1%), $11,949.57 (5.4%), $62,637.02 (643.5%) and $24,150.76 (68.8%), respectively over the
previous year. Operating expenses decreased $71,592.48 (1.9%) during the current year.
• The previous year included $66,800.00 and $135,543.86 in costs related to a downtown strategic plan update
and various housing rehab grants. No costs were included for these items in the current year. This year included
$64,054.95 in economic development payments from revenues collected from a Tax Increment Financing
District, $74,518.62 in costs related to an Independence Street traffic study and $70,953.94 in cost associated
with a comprehensive plan update. No costs were incurred for these items in the previous year. During the
current year $56,937.07 in overhead expenses were allocated to various capital projects. The amount allocated
was $27,220.26 (32.3%) less than the previous year.
• The following are other significant operating increases (decreases) over the previous year:
Economic development payments from sales tax rebates $93,613.89 (14.0%) decrease
GIS services provided by Alliance $51,789.00 (49.4%) decrease
Emergency housing grant related expenses $24,900.66 (15.5%) decrease
Convention and tourism bureau operating expense $84,087.42 (12.0%) increase
Advertising funded by air services grant $58,550.17 (80.6%) decrease
Street repairs at the Cape Regional Airport $26,981.32 (54.2%) decrease
Depreciation $29,387.99 (3.8%) increase
• Parks and recreation expenses totaled $5,939,357.84 (14.5% of total government activities) this year which was
$106,516.62 (1.8%) more than the previous year. Personnel costs accounted for 53.7% of the total parks and
recreation expenses. 24.0% of the personnel costs were for benefits and the remaining was for salaries including
vacation and sick leave expense. Salary expenses increased $71,648.12 (3.0%) during the current year. Benefit
expenses increased $13,870.75 (1.8%). The current year’s costs of providing pension benefits, employee health
and dental coverage, retiree health and dental coverage, and workmen’s compensation coverage were
$173,554.18, $235,883.18, $75,817.02 and $80,339.54, respectively. These costs increased (decreased)
($77,792.39) (31.0%), $14,236.60 (6.4%), $46,386.30 (157.6%) and $31,285.51 (63.8%), respectively over the
previous year. Operating expenses increased $20,997.75 (0.8%) during the current year.
• The following are significant operating increases (decreases) over the previous year:
Internal IT fees $12,284.01 (17.4%) decrease
Osage Centre major repairs $28,804.67 (360.4%) increase
Fleet maintenance costs $18,888.66 (11.7%) decrease
Small equipment purchases $96,355.63 (47.7%) decrease
Depreciation $127,480.84 (10.1%) increase
CITY OF CAPE GIRARDEAU, MISSOURI
12
Expenses from governmental activities (continued)
• Public safety expenses totaled $16,949,952.13 (41.3% of total government activities) this year which was
$1,401,135.12 (9.0%) more than the previous year. Personnel costs accounted for 73.1% of the total public
safety expenses. 28.7% of the personnel costs were for benefits and the remaining was for salaries including
vacation and sick leave expense. Salary expenses increased $176,938.94 (2.0%) during the current year. Full-
time, part-time, and overtime salaries increased (decreased) $(6,509.75) (0.1%), $45,764. 31 (43.3%), and
$137,684.38 (18.2%), respectively, during the current year. Benefit expenses decreased $393,478.87 (9.9%).
The current year’s costs of providing pension benefits, employee health and dental coverage, retiree health and
dental coverage, and workmen’s compensation coverage were $1,164,983.52, $1,047,384.24, $272,251.74 and
$400,126.44, respectively. These costs increased (decreased) ($277,711.59) (19.2%), $31,229.54 (3.1%),
$(295,809.98) (52.1%) and $137,414.26 (52.3%), respectively over the previous year. Operating expenses
increased $1,617,675.05 (55.0%) during the current year.
The current year included expenditures for the following:
Consulting services for radio interoperability project $ 19,025.00
Cost of equipping new facilities $144,002.49
Claims against the City $ 22,500.00
Transfer of remaining assets of Public Safety Foundation to
Community Foundation of the Ozarks $155,725.51
Pass through Grant – public safety equipment for local
communities $725,633.69
In the previous year only $67,935.00 were spent on these items. This expenditure related to consulting services
for radio interoperability project.
The following are other significant operating increases (decreases) over the previous year:
Depreciation $479,578.10 (73.0%) increase
Fleet maintenance costs $85,155.17 (25.6%) decrease
Vehicle insurance $18,077.39 (14.4%) increase
Utility expense $41,998.17 (45.6%) increase
Vehicle gasoline $27,079.14 (13.7%) increase
Cost of demolition of dangerous buildings $32,863.16 (102.8%) increase
• Public works expenses totaled $7,598,140.69 (18.5% of total government activities) this year which was
$751,424.19 (9.0%) less than the previous year. Personnel costs accounted for 15.2% of the total public works
expenses. 31.8% of the personnel costs were for benefits and the remaining was for salaries including vacation
and sick leave expense. Salary and benefit expenses decreased $1,497.30 (0.2%) and $4,501.77 (1.2%) during
the current year. The current year’s costs of providing pension benefits, employee health and dental coverage,
retiree health and dental coverage, and workmen’s compensation coverage were $82,400.40, $126,856.34,
$42,474.75 and $52,175.82, respectively. These costs increased (decreased) ($35,372.53) (30.0%), ($121.80)
(0.1%), $10,106.87 (31.2%) and $18,466.73 (54.8%), respectively over the previous year. Operating expenses
decreased $745,425.12 (10.4%) during the current year.
In the previous year the City spent $987,320.76 for costs associated with the temporary relocation of railroad
tracks associated with an Army Corp of Engineer’s project to the City’s Mississippi River flood wall. During
the current year the City spent $5,567.69 related to this project.
The following are other significant operating increases (decreases) over the previous year:
Snow and ice removal supplies $22,975.08 (48.3%) increase
Fleet maintenance costs $45,743.09 (22.4%) decrease
Depreciation $275,705.93 (5.7%) increase
Contracted street repairs $14,775.30 (30.7%) decrease
CITY OF CAPE GIRARDEAU, MISSOURI
13
Expenses from governmental activities (continued)
• Capital improvements expenses totaled $111,187.90 this year which was $38,452.76 (52.9%) more 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).
• Interest and other costs expenses totaled $903,735.34 this year which was $135,989.16 (13.1%) less than the
previous year.
The illustration above makes it clear that all the governmental activities and business -type activities of the City with
the exception of solid waste required a subsidy by taxpayers. General revenues in these activities, which include
transfers from special revenue sales taxes, were sufficient to provide adequate subsidies for both the governmental
and business-type activities.
Revenues by Source –
Governmental Activities
The above chart summarizes the sources of
revenue from government activities. The three
main sources of revenue and their share of total
governmental revenues are sales tax (49.2%),
other taxes (23.7%) and charges for services
(9.0%).
The City’s general sales tax represents 36.7 percent
of the total sales tax revenue and 45.4 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 48.4% and 51.1% of
the other tax and service charge revenue,
respectively. This represents 29.0% and 11.8% 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 $6,145,321.70.
During the previous year these activities increased the
City’s net position by $11,296,001.62. Business-type
activities before transfers decreased the City’s net
position by $3,191,519.99 during the current year. In
the previous year these activities decreased the City’s
net position by $3,799,985.62.
- 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
Other taxes
23.7%Sales taxes
49.2%
Other
1.5%
Charge for
Service
9.0%
Operating
grants
1.9%
Capital
grants
10.4%
Property
taxes
4.3%
Revenues for governmental
activities
CITY OF CAPE GIRARDEAU, MISSOURI
14
During the current year there were net transfers
from the governmental activities to business-type
activities of $9,336,841.69. In the previous year
there were net transfers from governmental
activities to business- type activities of
$15,095,987.24.
During current year transfers were made for the
following:
Capital improvement sales tax -
sewer fund for bond payments $3,750,000.00
Operating subsidy from parks
and recreation foundation $ 7,000.00
Operating subsidy from general
and parks sales tax funds $1,083,557.50
Operating subsidy from CVB
fund $ 278,931.12
Capital improvement sales tax -
water for capital projects $1,984,076.04
Transfers of emergency reserves
from general and CVB funds $ 367,252.00
Net transfer of asset to or from
other government activities $1,866,025.03
During previous year transfers were made for the
following:
Capital improvement sales tax -
sewer fund for bond payments $4,340,000.00
Capital improvement sales tax -
water fund for bond payments $ 300,000.00
Park sales tax fund for bond
payments $ 150,000.00
Operating subsidy from general
and parks sales tax funds $1,363,696.83
Capital improvement sales tax -
water for capital projects $ 470,076.04
Casino revenue fund revenues for
transfer station construction $ 13,500.00
Net transfer of asset to or from
other government activities $8,458,714.37
The net change in net position before transfers
and general revenues in the sewer, water, solid
waste, golf, indoor sports complex, and sporting
complexes operations totaled $(1,311,541.32),
$(412,439.22), $133,249.61, $(195,001.16),
$(573,846.52) and $(976,384.79), respectively,
this year. This compares to $(2,544,888.47),
$(467,211.98), $358,639.81, $(269,500.46),
$(273,944.32) and $(837,065.01), respectively,
in the previous year.
Financial Analysis of the City’s Funds
As noted earlier, the City of Cape Girardeau uses
fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds. The focus of the City’s
governmental funds is to provide information on
near-term inflows, outflows, and balances of
spendable resources. Such information is useful in
assessing the City’s financing requirements. In
particular, unassigned fund balance may serve as a
useful measure of the City’s net resources available
for spending at the end of a fiscal year.
As of June 30, 2018, the City’s governmental funds
reported combined ending fund balances of
$36,189,612.68, a decrease of $14,543,037.53
(28.7%) from the prior year. Unassigned fund
balances, which are available for spending at the
City’s discretion, account for $3,187,972.46 (8.8%)
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, 2018: (1)
$630,362.53 is classified as nonspendable because it
is either (a) not in spendable form or (b) legally or
contractually required to be maintained intact (2)
$23,381,901.09 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) $7,257,679.96
is classified as committed because it can only be used
for specific purposes pursuant to constraints imposed
by formal action of the City Council 4)
$1,731,696.64 is classified as assigned because its
expenditure is constrained by the City’s intent to use
it for specific purposes.
Capital
grants
6.6%
Charge
for
Service
92.7%
Other
.7%
Revenues for business-type activities
CITY OF CAPE GIRARDEAU, MISSOURI
15
The general fund is the chief operating fund of
the City. At the end of fiscal year ending June,
unassigned fund balance of the general fund was
$3,214,828.54 while total fund balance was
$7,290,358.03. 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 10.5 percent of total
general fund expenditures including transfers.
However, included in the restricted fund balance
is $3,650,000.00, which had been reserved to
meet the City Charter’s emergency reserve
requirement. This amount represents 12.0
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 decreased by $515,496.08
as a result of the current year’s operations.
However, the General Fund Statement of
Revenues, Expenditures, and Changes of Fund
Balance prepared on a budget basis shows a current
fiscal year decrease of $468,348.08. Differences
between the amounts reflected in the two
statements can be found in the Notes to Budgetary
Comparison Schedules found on pages 88 - 91
The original adopted general fund budget for the
fiscal year ending June 30, 2018 had revenues
exceeding expenditures by $19,369.00. The
actual general fund results decreased fund
balances by $468,348.08. Significant deviations
from this budget are detailed below:
o Sales tax revenue was $251,504.11
(2.5%) more than the previous year, which
was $175,464.27 (1.6%) less than projected
for the adopted budget. The adopted budget
projected revenues that were 2.8% above the
actual fiscal year ending June 30, 2016
revenues. Actual revenues declined 1.3%
during the previous year.
o Franchise tax revenue was $223,100.44
(4.5%) more than projected for the adopted
budget. Franchise taxes from electric
utilities, natural gas utilities, and the City’s
water and sewer service exceeded their
budgets by $227,170.48 (8.1%), $21,785.53
(3.3%), and $19,183.32 (2.8%),
respectively. Franchise taxes from
telecommunications and cable TV fell short
of their budgets by $9,455.88 (2.9%) and
$35,583.01 (8.0%), respectively.
o During the current year Ameren paid
$413,711.29 (12.5%) more than the previous
year. Payments received on electricity sales and
natural gas sales increased $296,467.48 (10.8%)
and $117,243.81 (20.6%), respectively, during
the current year. Average monthly electric and
natural gas rates were 4.3% and 6.9% higher
during the current year when compared to the
previous year. Projections used in the current
year’s budget had assumed electric and natural
gas usage at annual usage levels from the three
years ending December 31, 2016 and rates that
were in effect on April 1, 2017. Colder winter
and warmer spring weather during the current
year when compared to the previous year
positively impacted franchise tax revenues.
o During the current year the City received
payments in lieu of gross receipt franchise taxes
totaling $713,433.32 from its water and sewer
funds. This was $18,124.26 (2.6%) more than
the previous year. The amount of payments in
lieu of gross receipts franchise taxes projected
for the current year’s budget were based on
projected sewer and water revenues for the fiscal
year ended June 30, 2017 and no rate increases.
Sewer and water rate increases of 2% were
effective July 1, 2017.
o Franchise tax paid during the current year by
the City’s telecommunication service providers
decreased $100,110.30 (23.8%) 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 2016. During
the previous year the City received $97,214.73
from a settlement of a class action lawsuit
against a cell phone service provider.
o Franchise tax paid during the current year by
the City’s cable TV service provider decreased
$16,323.26 (3.8%) from the previous year. The
amount of projected franchise tax used in the
current year’s budget was 2.3% more than actual
revenue from the year ending June 30, 2016.
CITY OF CAPE GIRARDEAU, MISSOURI
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o Property tax revenue increased
$111,768.04 (5.8%) over the previous year
and was $110,242.93 (5.8%) more than the
projected budget. $98,590.19 of this year’s
increase resulted from the first year of
payments in lieu of taxes from properties
included in two tax increment financing
districts (TIF). Assessed values finalized by
the board of equalization increased
$17,542,678 (3.5%) and $127,920 (0.1%)
for real estate and personal property,
respectively. Assessed values from new
construction and new annexation totaling
$3,573,090 and $250, respectively, were
included in the real estate increase. The
City’s general tax levy rate was set .1%
lower than the previous year. The adopted
budget for the fiscal year ending June 30,
2018 had assumed 1.5% and 2.5% assessed
value growth for real estate and personal
property, respectively and no levy increases.
o Business license revenue increased
$24,844.41 (1.9%) from the previous year
and was $27,089.16 (2.0%) less than the
projected budget. The adopted budget
projected revenues that were 1.5% greater
than projected fiscal year ending June 30,
2017 revenues. Actual revenue for fiscal
year ending June 30, 2017 was $32,083.57
(2.4%) less than had been assumed by the
budget projections.
Other license and permit revenue was
$10,882.22 (3.4%) more than the previous
year and was $19,888.17 (6.0%) more than
the projected budget.
Intergovernmental revenue exceeded
revenue projected for the original budget
by $258,434.36 (40.5%). This year’s
intergovernmental revenue included
$53,068.51 in revenues from various public
safety capital grants, $133,067.30 for
emergency shelter grants, and $145.15 for
river flooding reimbursement grants. None
of these revenues had been projected in the
current year’s budget. The current budget
projected $589,257.00 in grants for public
safety operating expenses. Actual revenue
was $69,020.55 (11.7%) more than this
amount during the current year.
Service charges exceeded the amount
projected in the current year’s budget by
$111,859.57 (44.2%) and were $79,135.36
(27.7%) more than the previous year. Actual
court revenues and development fees were
($11,506.11) (14.7%) and $27,273.16 (26.2%)
more (less), respectively, than their current
year’s budgets and increased (declined)
($9,730.21) (12.7%) and $42,306.60 (47.4%),
respectively, from the previous year’s actual.
Charges for police and fire service were
$77,052.52 and $5,000.00, respectively, during
the current year which exceeded previous year’s
charges by $38,244.97 and $5,000.00. No
revenue had been projected in the budget for
these charges.
o Fines and forfeits revenue fell short of its
budget by $124,553.75 (17.2%) and was
$111,821.25 (15.7%) less than the previous
year. The adopted budget for fiscal year ending
June 30, 2018 had assumed revenue levels
equal to the actual revenue for the year ending
January 2017. The number of traffic cases heard
by the municipal court in fiscal year ending
June 30, 2018 was 13.5% less than those heard
in year ending January 2017.
During the current fiscal year total
expenditures were $53,160.21 (0.2%) less than
the original budget. Operating expenditures
were $159,390.79 (0.7%) less than their
original budget and debt service expenditures
were $10,083.00 (1.0%) more than their
original budget. $96,147.58 was spent on
capital purchases during the current year. The
original budget included no capital
expenditures.
Transfers to other funds for operating
subsidies were $25,940.12 (1.9%) more than
original budget. The current year included
$568,390.60 in transfers to cover capital
expenditures in other funds and $927,102.00 in
transfers of emergency reserves from the
general fund to other funds. These transfers
were not included in the original budget.
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
CITY OF CAPE GIRARDEAU, MISSOURI
17
other governmental activities on the government -
wide statements.
General Fund Budgetary Highlights
Total expenditures and transfers on the final
amended budget were $2,329,804.00 (8.0%)
more than the original adopted budget. During
the current year the City Council appropriated
this additional amount which can be summarized
as follows:
Administration - $152,000.00 for a City Hall
space needs study not included in the original
budget.
Development Services – $125,000.00 to cover
grant funded community assistance expenditures
and $69,000.00 for redevelopment agreement
payments not included in the original budget.
Public Safety – $149,684.00 to cover operating
costs and small equipment purchases from
various police operating grants, $82,263.00 for
the purchase of equipment from fire operating
and capital grants, and $25,000.00 for payment
of claims against police not included in the
original budget. $72,100.00 was also
appropriated to cover overages in specialized
education, internal fleet maintenance, insurance
and utility costs.
General Fund Transfer to Airport Fund –
$100,000.00 to cover capital improvement costs
not included in the original budget and
$258,000.00 to set up an emergency reserve fund
in the Airport Fund.
General Fund Transfer to Parks and
Recreation Fund – $155,000.00 to cover an
additional operating subsidy and $414,500.00 to
set up an emergency reserve fund in the Parks
and Recreation Fund.
General Fund Transfer to Public Safety
Trust Fund II - $67,155.00 to cover the
transfer of proceeds of the sale of police and
fire vehicles received by the General Fund to
the Public Safety Trust Fund II.
General Fund Transfer to General Capital
Improvements Fund - $175,500.00 to cover the
transfer of proceeds of the sale of old Fire Station #4
received by the General Fund to the General Capital
Improvements Fund.
General Fund Transfer to Park System
Improvements Fund - $190,000.00 to cover the
transfer of General Fund revenues received from
internal charges to various capital improvements of
the Park System Improvements Fund to that fund to
help fund those projects.
General Fund Transfer to Golf Fund -
$97,350.00 to set up an emergency reserve fund in
the Golf Fund.
General Fund Transfer to Sports Complex Fund
– $40,000.00 to cover an additional operating
subsidy and $157,252.00 to set up an emergency
reserve fund in the Sports Complex Fund.
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.
During the year the City Manager authorized the
transfer of $51,200.00 from the original
Administrative contingency budget to the following
departments:
Public Works – $5,716.00 to cover unbudgeted costs
of property damage.
Public Safety – $11,300.00 to cover unbudgeted
costs related to a building demolition.
Administration - $10,600.00 to cover unbudgeted
costs related a Deputy Finance Director search;
$1,600.00 for unbudgeted costs social media
archiving; $3,000.00 for unbudgeted costs of
remodeling the customer service office; $6,500.00 to
pay for unbudgeted costs related to two city hall
studies and $4,684.00 for unbudgeted costs related to
repairs to city hall’s fire alarm.
Development Services – $7,800.00 to cover a
General Fund to Airport Fund transfer to cover
unbudgeted costs of a new phone system.
CITY OF CAPE GIRARDEAU, MISSOURI
18
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, 2018
amounts to $397,831,659.27 (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 $6,674,097.24
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, LED light conversion,
and sidewalk construction and repair
projects.
$680,561.24 was spent on the overlay and
rehabilitation of runway 2/20 at the
Airport and was partially funded by
MODOT, while $442,257.57 was spent on
lighting rehab on runway 10/28.
Construction on this project will continue
into the next year.
$8,268,386.54 of bond funds were used to
finish the construction of a new police
station, replace an aging Fire Station, and
rehabilitate two other Fire facilities.
Funds received from the Isle of Capri
were used to complete the installation of
public art, purchase new plan review
software, redesign our city’s website,
purchase new software for trash trucks, and
begin the process of installing a radio
interoperability project in the amounts of
$8,750.52, $230,776.56, $9,750.00,
$51,321.40, and $661,837.57, respectively.
In April 2008 voters approved a ½ cent sales
tax to pay for storm water and park
improvement projects. $237,786.59 and
$2,349,924.29 were spent respectively during
the current year on these projects.
Construction costs totaling $1,720,102.62 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, water tank painting,
the planning fees for rehab of several aspects at
the main water plant, various water distribution
improvements, the addition of water main
extensions and the continuation of the two-inch
water main replacement program.
Sewer project costs amounted to $825,168.18
in capital expenditures during the current year.
Projects included a wastewater scada upgrade,
repair of a downtown force main, various
sanitary sewer projects, and additional costs to
improve the wastewater treatment plant.
$20,960.13 was spent on an intersection that
was transformed from a four way stop into a
roundabout. This will be partially funded by a
Department of Transportation grant.
$1,558,273.01 was spent on a bridge that spans
an area affected by sinkholes. The bridge was
funded mostly by a grant from the Department
of Transportation.
Other equipment purchased totaled
$2,128,368.05.
Motor fuel funds in the amount of $284,645.97
were used to repair a bridge.
$101,952.60 in Airport funds were used to
improve Airport facilities for a new airline
service that began in December.
Infrastructure additions and improvements
totaling $3,057,437.60 were contributed by
developers. These included new streets,
sidewalks, sanitary and storm sewers, water
lines and street lighting.
2.9%
61.6%
33.3%
2.2%
Land
Buildings/Equipment
Infrastructure
Construction in
Progress
CITY OF CAPE GIRARDEAU, MISSOURI
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A total of $121,366.83 was spent to
purchase land, renovate offices, and install
fences and a surveillance system.
Long-term debt.
At the end of the fiscal year, the City of Cape
Girardeau had total debt outstanding of
$111,524,412.01. Bonded debt outstanding
totaling $78,132,258.21 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 decreased by $13,890,443.37
(11.1%) during the year. Regularly scheduled
principal payments and amortization of bond
premiums / discounts resulted in outstanding
long-term debt being reduced by
$10,680,894.89.
Additional information about the City’s capital assets
can be found in note D to the financial statements.
During the year the City paid off a Missouri
Transportation Finance Corporation loan early
resulting in additional principal payments of
$3,209,548.48. The Missouri Transportation Finance
Corporation loan was used to finance costs of a new
bridge on Sprigg Street in previous years. Federal
emergency relief funds received by the City for this
project and STP-U grant funds were used to prepay
the loan.
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
2018 2017 2018 2017 2018 2017
Notes payable
3,618,447.13
7,520,270.49
-
- 3,618,447.13 7,520,270.49
Special obligation
bonds
26,832,290.77
31,312,385.95 2,941,415.90 3,278,346.24 29,773,706.67 34,590,732.19
Revenue bonds
665,900.00
713,800.00
77,466,358.21
82,590,052.70 78,132,258.21 83,303,852.70
31,116,637.90
39,546,456.44
80,407,774.11 85,868,398.94
111,524,412.01
125,414,855.38
City of Cape Girardeau's Capital Assets
(net of depreciation)
Governmental Business-type
Activity Activities Total
2018 2017 2018 2017 2018 2017
Land 9,379,312.86 9,346,963.15 1,985,017.54 1,985,017.54 11,364,330.40 11,331,980.69
Buildings and
system
improvements 36,464,218.58 20,111,315.60 16,736,328.02 17,405,553.14 53,200,546.60 37,516,868.74
Improvements
other than
buildings 18,360,093.99 18,490,522.48 155,939,154.13 154,123,879.78 174,299,248.12 172,614,402.26
Equipment 10,979,205.30 10,792,462.46 7,007,686.78 4,268,604.16 17,986,892.08 15,061,066.62
Infrastructure 132,323,818.87 122,328,199.33 - - 132,323,818.87 122,328,199.33
Construction
in progress 6,920,246.82 19,225,314.42 1,736,576.38 6,600,091.87 8,656,823.20 25,825,406.29
Total 214,426,896.42 200,294,777.44 183,404,762.85 184,383,146.49 397,831,659.27 384,677,923.93
CITY OF CAPE GIRARDEAU, MISSOURI
20
Economic Factors and the Next Year’s Budget
Commercial and residential development
slackened over the year, after the record high in
the previous year. Values of commercial permits
issued during the year were 81.3% lower than the
previous year. Values of residential permits
issued during the year were 57.8% lower than the
previous year.
Commercial and residential permits valued at
$46.8 million and $15.7 million were issued this
year. Commercial and residential permits valued
at $250.5 million and $37.2 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 2.2% in
October 2018. Statewide and national unadjusted
unemployment rates were 2.3% and 3.5%,
respectively, for this month. The unadjusted
unemployment rates were 2.2%, 2.5% and 3.9%
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 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. The
redevelopment of the Marquette Hotel was
completed during the previous year.
Construction related to the Marriott Hotel began
in August 2017 with the hotel opening for
business in October 2018.
During the year the following economic
development activity took place in Cape
Girardeau:
• AT&T announced 200 new jobs.
• Several new retail businesses and
restaurants began operation during the year.
• Codefi, the hi-tech hub located in the
redeveloped Marquette Tower, now has 40
new businesses, 130 new jobs, and $14M of
private investment.
• Vizient, the nation’s largest member-owned
health-care services company, expanded its
IT operation based in the City.
• In September 2017 the U.S. Department of
Transportation approved plans for SkyWest
Airlines to serve as the new provider of air
services to Cape Girardeau. SkyWest’s 50-
passenger jet now quickly connects Cape
Girardeau to the world through daily flights to
Chicago O’Hare airport. In August of 2018
SkyWest announced that it would offer
additional flights daily starting in January 2019.
Magnet, the partnership led by the Chamber of
Commerce and responsible for promoting economic
development in Cape Girardeau and the surrounding
communities, reported the following activities during
the year:
• Made over 35 visits to businesses with
potential new employment of than 6,000
employees. Businesses visited included
manufacturing, medical, financial and other
business services.
• Retention visits have resulted in the
identification of 3 new economic
development projects in the area.
• Worked with SEMPO on regional
transportation priorities.
• Supported Ameren’s efforts on electrical
grid upgrade.
• Maintained Certified Work Ready Community
status.
• Continued Partnership with Codefi on adult
and youth IT training programs.
• Hosted third Manufacturing Day with seven
local companies interacting with 250+
students.
• Worked with CTC to foster the CDL Training
program.
• Continued a job shadowing initiative with
SEMO and Cape Central High School called
Connect Cape.
CITY OF CAPE GIRARDEAU, MISSOURI
21
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 by 2.45% while inflation grew at
2.25%. In the previous year sales tax revenue
from the general sales tax decreased 1.34% while
inflation grew at 1.85 %.
The City’s hotel / motel gross receipt tax
increased 9.0% and restaurant gross receipt tax
increased 3.9% during the current year. In the
previous year they decreased 1.7% and increased
0.4%, respectively.
Regional Retail Center.
The City is heavily dependent on sales tax
revenue for support of its general fund services.
Above average growth of local retail sales can
have a positive impact on the City’s ability to
fund services in the future.
Cape Girardeau continues to be a regional retail
center for much of Southeast Missouri and
Southern Illinois. Since 2015 the City’s share of
the local retail market has declined.
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’s share of the local market
appears to have declined significantly.
Local Economic Development.
In the previous 13years the City has entered into 6
long-term development agreements to reimburse
companies for public improvements associated with 5
retail development projects and a hotel / convention
center development project from 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, the addition of a 168 room hotel and related
20,000 square foot convention center, and in the
conversion of a former Sears’s facility into a call
center. Details of these agreements can be found in
Note T in the Notes to the Financial Statements
section.
Payments made by the City pursuant to these
agreements totaled $574,748 during the current year.
Payments totaling $4,248,104 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.
SALES TAX COMPARISON
FY15 FY16 FY17 FY18
Cape Girardeau 43.7% 44.2% 44.3% 42.5%
Carbondale 26.1% 25.6% 25.0% 25.6%
Jackson 9.6% 9.6% 9.8% 10.2%
Perryville 7.4% 7.4% 7.5% 8.1%
Sikeston 13.2% 13.2% 13.4% 13.6%
100.0% 100.0% 100.0% 100.0%
CITY OF CAPE GIRARDEAU, MISSOURI
22
Budget for fiscal year ending June 30, 2018 and
financial condition
The adopted general fund budget for the fiscal
year ending June 30, 2018, was projected to
produce a $19,369 surplus and included a 1.5%
wage increase effective July 1, 2017. Projected
revenues used in preparing the budget were
based on conservative revenue assumptions.
The approved general fund budget projected the
use of this surplus plus $82,597 prior year’s
unassigned fund balance to increase the
emergency reserve fund balance by $101,966.
The City’s current financial position has
modestly improved over the past five years and
is good in that it has more than adequate fund
balance to cover existing claims and potential
emergencies. The City’s general fund ended the
current year with $3,214,828.54 in unassigned
fund balances and $3,650,000.00 in fund
balances restricted for emergencies. Five years
ago these balances were $3,055,688.70 and
$4,088,745.00, respectively. During the current
year fund balances restricted for emergencies for
the airport, park and recreation, golf, and
sporting complexes funds totaling $927,102 that
had previously been held in the general fund
were transferred to their related funds.
Its financial condition or its ability to provide enough
reoccurring revenues to meet its reoccurring needs
has not changed significantly over the past five years.
Funding of equipment for the general and airport
funds, excluding police, fire 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 $ 39,344,568.95 $ 12,856,509.21 $ 52,201,078.16
Cash and cash equivalents 71,521.60 - 71,521.60
Investments 348,660.22 - 348,660.22
Taxes receivable 3,908,643.09 - 3,908,643.09
Utility charges receivable - 2,475,180.24 2,475,180.24
Special assessments receivable 343,548.78 31,942.28 375,491.06
Interest receivable 180.29 2,152.21 2,332.50
Other receivables 669,853.98 43,406.56 713,260.54
Notes receivable 133,455.78 - 133,455.78
Motor fuel receivable 136,014.87 - 136,014.87
Grants receivable 810,197.10 4,609.16 814,806.26
Inventory 249,766.92 697,946.98 947,713.90
Prepaid items 348,205.71 30,706.24 378,911.95
Internal balances (186,907.98) 186,907.98 -
Total current assets 46,177,709.31 16,329,360.86 62,507,070.17
Noncurrent assets:
Restricted cash and cash equivalents - 6,579,977.43 6,579,977.43
Net pension assets 8,442,567.08 1,428,702.92 9,871,270.00
Land 9,379,312.86 1,985,017.54 11,364,330.40
Buildings 36,464,218.58 16,736,328.02 53,200,546.60
Land improvements 18,360,093.99 155,939,154.13 174,299,248.12
Equipment 10,979,205.30 7,007,686.78 17,986,892.08
Infrastructure 132,323,818.87 - 132,323,818.87
Construction in process 6,920,246.82 1,736,576.38 8,656,823.20
Total noncurrent assets 222,869,463.50 191,413,443.20 414,282,906.70
Total assets 269,047,172.81 207,742,804.06 476,789,976.87
Deferred outflows of resources:
Deferred outflow from pension plan 1,384,006.02 162,450.98 1,546,457.00
Deferred outflow from retiree health plan 122,784.07 9,013.93 131,798.00
Total deferred outflows of resources 1,506,790.09 171,464.91 1,678,255.00
Primary Government
City of Cape Girardeau
Statement of Net Position
June 30, 2018
See Accompanying Notes to Basic Financial Statements.
Governmental
Activities
Business-type
Activities Total
LIABILITIES
Current liabilities:
Accounts payable 1,664,423.32 892,394.14 2,556,817.46
Salaries and benefits payable 1,053,142.63 213,925.03 1,267,067.66
Interest payable 114,881.29 586,321.76 701,203.05
Other liabilites 182,237.60 786,879.31 969,116.91
Estimated claims 724,500.00 - 724,500.00
Due to other governments 1,295.14 74,685.68 75,980.82
Unearned revenues 123,191.44 112,962.29 236,153.73
Total current liabilities 3,863,671.42 2,667,168.21 6,530,839.63
Noncurrent liabilities:
Estimated landfill post closure costs - 18,000.00 18,000.00
Notes payable 3,618,447.13 - 3,618,447.13
Revenue bonds payable 665,900.00 77,466,358.21 78,132,258.21
Special obligation bonds payable 26,832,290.77 2,941,415.90 29,773,706.67
Compensated absences payable 1,548,858.41 174,121.12 1,722,979.53
Net OPEB obligation 10,363,160.00 760,789.00 11,123,949.00
Total noncurrent liabilities 43,028,656.31 81,360,684.23 124,389,340.54
Total liabilities 46,892,327.73 84,027,852.44 130,920,180.17
Deferred inflows of resources:
Deferred inflow from pension plan 3,361,504.50 575,837.50 3,937,342.00
Deferred inflow from retiree health plan 403,112.38 29,593.62 432,706.00
Total deferred inflows of resources 3,764,616.88 605,431.12 4,370,048.00
NET POSITION
Net investment in capital assets 183,312,356.37 102,597,510.82 285,909,867.19
Restricted for depreciation and replacement - 150,000.00 150,000.00
Restricted for emergency fund 5,032,810.00 3,593,775.00 8,626,585.00
Restricted for mausoleum 98,723.52 - 98,723.52
Unrestricted 31,453,128.40 16,939,699.59 48,392,827.99
Total net position $ 219,897,018.29 $ 123,280,985.41 $ 343,178,003.70
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Net Position
June 30, 2018
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 $ 903,735.34 $ - $ - $ - $ (903,735.34) $ - $ (903,735.34)
Development Services 6,341,496.75 1,536,633.43 316,468.87 1,400,222.00 (3,088,172.45) - (3,088,172.45)
Public Safety 16,949,952.13 167,334.87 704,907.92 1,062,188.96 (15,015,520.38) - (15,015,520.38)
Public Works 7,598,140.69 53,518.88 145.15 1,674,411.15 (5,870,065.51) - (5,870,065.51)
Parks and Recreation 5,942,416.07 1,824,476.74 80,890.45 223,744.51 (3,813,304.37) - (3,813,304.37)
Capital Improvements 111,187.90 - - 1,742,445.79 1,631,257.89 - 1,631,257.89
Administrative 3,192,426.65 1,750,379.17 - - (1,442,047.48) - (1,442,047.48)
Total governmental activities 41,039,355.53 5,332,343.09 1,102,412.39 6,103,012.41 (28,501,587.64) - (28,501,587.64)
Business-type activities:
Golf Course Fund 688,354.89 493,353.73 - - - (195,001.16) (195,001.16)
Indoor Sports Complex 1,040,273.66 430,627.14 5,000.00 30,800.00 - (573,846.52) (573,846.52)
Sewer Fund 10,018,537.41 7,498,321.69 311.64 1,208,362.76 - (1,311,541.32) (1,311,541.32)
Solid Waste Fund 4,229,339.80 4,362,275.00 314.41 - - 133,249.61 133,249.61
Sporting Complexes Fund 1,327,348.33 350,963.54 - - - (976,384.79) (976,384.79)
Water Fund 7,643,554.28 7,035,754.22 - 195,360.84 - (412,439.22) (412,439.22)
Total business-type activities 24,947,408.37 20,171,295.32 5,626.05 1,434,523.60 - (3,335,963.40) (3,335,963.40)
Total primary government $ 65,986,763.90 $ 25,503,638.41 $ 1,108,038.44 $ 7,537,536.01 (28,501,587.64) (3,335,963.40) (31,837,551.04)
2,489,086.94 - 2,489,086.94
28,666,729.38 - 28,666,729.38
5,166,950.44 - 5,166,950.44
1,538,419.30 - 1,538,419.30
2,329,587.86 - 2,329,587.86
1,315,760.84 - 1,315,760.84
76,236.25 - 76,236.25
3,425,332.55 - 3,425,332.55
62,548.94 - 62,548.94
424,808.70 132,390.52 557,199.22
402,912.40 12,052.89 414,965.29
(9,336,841.69) 9,336,841.69 -
36,561,531.91 9,481,285.10 46,042,817.01
8,059,944.27 6,145,321.70 14,205,265.97
219,726,700.02 117,923,931.21 337,650,631.23
(7,889,626.00) (788,267.50) (8,677,893.50)
$ 219,897,018.29 $ 123,280,985.41 $ 343,178,003.70 Net position - ending
See Accompanying Notes to Basic Financial Statements.
Prior period adjustments
Unrestricted investment earnings
Gain or Loss on disposal of assets
Transfers
Total general revenues, special items, and transfers
Change in net position
Net position - beginning
Unrestricted grants and contributions
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
Net (Expense) Revenue and Changes in Net Position
City of Cape Girardeau
Statement or Activities
For the Year Ended June 30, 2018
FUND FINANCIAL STATEMENTS
General Fund Airport Fund
Parks and Recreation
Fund Casino Revenue Fund
Transportation Sales
Tax V
General Capital
Improvements Total Nonmajor Funds
Total Governmental
Funds
ASSETS
Current assets:
Cash and cash equivalents $ 13,140.00 $ - $ - $ - $ - $ - $ 58,381.60 $ 71,521.60
Pooled cash and investments 6,018,971.19 49,328.33 1,167,926.78 7,191,530.78 7,972,674.11 329,486.90 9,960,598.87 32,690,516.96
Receivables-
Real estate taxes, net 143,604.99 - - - - - 27,376.62 170,981.61
Property taxes, net 26,891.54 - - - - - 5,036.85 31,928.39
Sales tax 1,083,378.37 - - - 531,988.51 - 1,348,824.35 2,964,191.23
Franchise taxes 515,766.22 - - - - - - 515,766.22
Hotel & motel tax - - - - - - 225,775.64 225,775.64
Special assessments 274,853.98 - - - - - 68,694.80 343,548.78
Other 104,499.02 154,457.16 78,698.70 223,356.42 - 33,839.08 16,580.82 611,431.20
Motor fuel tax - - - - - - 94,562.72 94,562.72
Vehicle license fees - - - - - - 12,746.63 12,746.63
Motor vehicle sales tax - - - - - - 28,705.52 28,705.52
Grants 200,624.22 559,714.08 - - 8,911.81 - 40,910.00 810,160.11
Other funds 424,415.40 - - - - - - 424,415.40
Inventory 1,175.70 39,756.97 13,830.93 - - - 7,520.75 62,284.35
Prepaid items 88,294.48 16,371.65 20,030.13 - - - 71,416.97 196,113.23
Total current assets 8,895,615.11 819,628.19 1,280,486.54 7,414,887.20 8,513,574.43 363,325.98 11,967,132.14 39,254,649.59
Noncurrent assets:
Advances to other funds - - - 432,161.82 - - - 432,161.82
Total Noncurrent assets - - - 432,161.82 - - - 432,161.82
Total assets $ 8,895,615.11 $ 819,628.19 $ 1,280,486.54 $ 7,847,049.02 $ 8,513,574.43 $ 363,325.98 $ 11,967,132.14 $ 39,686,811.41
City of Cape Girardeau
Balance Sheet
Governmental Funds
June 30, 2018
See Accompanying Notes to Basic Financial Statements.
General Fund Airport Fund
Parks and Recreation
Fund Casino Revenue Fund
Transportation Sales
Tax V
General Capital
Improvements Total Nonmajor Funds
Total Governmental
Funds
LIABILITIES
Current liabilities:
Accounts payable $ 272,961.99 $ 68,984.28 $ 89,625.80 $ 130,207.24 $ 506,925.65 $ 192,773.73 $ 236,033.19 $ 1,497,511.88
Salaries and benefits payable 763,253.19 29,603.82 136,217.00 - - - 4,517.66 933,591.67
Other liabilities 115,480.75 49,997.28 16,759.57 - - - - 182,237.60
Due to other governments 88.50 - - - - - 1,206.64 1,295.14
Payable to other funds - 171,536.91 - - - - 20,145.32 191,682.23
Unearned revenues 12,361.56 1,897.28 108,932.60 - - - - 123,191.44
Deferred revenues 441,111.09 - - 27,000.00 - - 99,577.68 567,688.77
Total Current liabilities 1,605,257.08 322,019.57 351,534.97 157,207.24 506,925.65 192,773.73 361,480.49 3,497,198.73
Total liabilities 1,605,257.08 322,019.57 351,534.97 157,207.24 506,925.65 192,773.73 361,480.49 3,497,198.73
FUND BALANCES (DEFICITS)
Nonspendable 90,381.96 16,371.65 20,030.13 432,161.82 - - 71,416.97 630,362.53
Restricted 3,780,900.80 258,000.00 414,500.00 - 8,006,648.78 - 10,921,851.51 23,381,901.09
Committed - - - 7,257,679.96 - - - 7,257,679.96
Assigned 204,246.73 223,236.97 494,421.44 - - 170,552.25 639,239.25 1,731,696.64
Unassigned 3,214,828.54 - - - - - (26,856.08) 3,187,972.46
Total fund balances (deficits) 7,290,358.03 497,608.62 928,951.57 7,689,841.78 8,006,648.78 170,552.25 11,605,651.65 36,189,612.68
Total liabilities and fund balances (deficits) $ 8,895,615.11 $ 819,628.19 $ 1,280,486.54 $ 7,847,049.02 $ 8,513,574.43 $ 363,325.98 $ 11,967,132.14 $ 39,686,811.41
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Balance Sheet
Governmental Funds
June 30, 2018
$36,189,612.68
212,552,938.16
7,404,966.53
6,319,740.18
(195,360.06)
(31,116,637.90)
(10,341,482.06)
(1,484,448.01)
567,688.77
$219,897,018.29
The notes to financial statements are an integral part of this statement.
City of Cape Girardeau
Reconciliation of Balance Sheet
To the Statement of Net Position
June 30, 2018
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,
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.
Assets, liabilities, and deferred inflows and outflows related to the City's retiree health 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 not
require the use of or provide current financial resources.
Non-current compensated absences payable included in governmental activities of the statement of net position for earned
vacation and termination pay do not require the use of current financial resources and are not included in governmental
funds.
Assets included in governmental activities of the statement of net position that are not available to pay for current-period
expenditures are offset by deferred revenues in governmental funds.
Net position of governmental activities
General Fund Airport Fund
Parks and Recreation
Fund Casino Revenue Fund
Transportation Sales
Tax V
General Capital
Improvements
Total Nonmajor
Funds
Total Governmental
Funds
REVENUES
Taxes $ 17,866,334.64 $ - $ - $ 3,082,692.45 $ 5,096,520.24 $ - $ 15,982,392.73 $ 42,027,940.06
Licenses & Permits 1,649,227.01 - - - - - 4,277.00 1,653,504.01
Intergovernmental 911,897.94 1,584,145.08 - 884,910.00 21,739.68 - 3,290,731.18 6,693,423.88
Charges for Services 364,749.57 457,673.51 1,479,931.18 - - - 101,159.40 2,403,513.66
Internal Charges 1,145,715.50 - - - - - - 1,145,715.50
Fines and Forfeits 600,446.25 - - - - - - 600,446.25
Miscellaneous 538,537.30 306,910.68 22,452.32 104,964.51 - - 121,161.69 1,094,026.50
Investment Revenue 45,777.00 1,127.96 - 51,248.87 33,677.39 54,752.02 201,311.20 387,894.44
Special Assessments 17,485.68 - - - - - 4,463.82 21,949.50
Total revenues 23,140,170.89 2,349,857.23 1,502,383.50 4,123,815.83 5,151,937.31 54,752.02 19,705,497.02 56,028,413.80
EXPENDITURES
Current:
Administrative 2,776,743.88 - - 95,810.40 - - - 2,872,554.28
Development Services 2,488,862.56 1,409,114.64 - 18,555.00 346,840.72 - 1,227,369.79 5,490,742.71
Parks and Recreation 1,656,263.04 - 2,703,922.94 - - - 62,871.45 4,423,057.43
Public Safety 14,188,872.26 - - 52,552.04 - 144,002.49 410,762.36 14,796,189.15
Public Works 2,538,334.64 - - - - - 5,567.69 2,543,902.33
Debt service:
Administrative charges 583.00 - - - - - 214.56 797.56
Interest 19,700.00 1,159.95 - 90,314.00 - - 903,061.36 1,014,235.31
Principal 985,000.00 - - 369,686.00 - - 7,050,037.36 8,404,723.36
Capital outlay:
Administrative - - - 9,750.00 - - - 9,750.00
Capital Improvements - - - 51,849.71 3,820,721.45 8,310,478.97 7,420,599.71 19,603,649.84
Development Services 1,527.45 1,625,251.60 - 231,181.81 - - - 1,857,960.86
Parks and Recreation 8,000.00 - 18,653.54 8,750.52 - - 386,512.55 421,916.61
Public Safety 93,256.36 - - 1,694,946.26 - 16,800.00 166,194.38 1,971,197.00
Public Works 3,637.35 - - 51,321.40 - - - 54,958.75
Total expenditures 24,760,780.54 3,035,526.19 2,722,576.48 2,674,717.14 4,167,562.17 8,471,281.46 17,633,191.21 63,465,635.19
Excess (deficiency) of revenues over expenditures (1,620,609.65) (685,668.96) (1,220,192.98) 1,449,098.69 984,375.14 (8,416,529.44) 2,072,305.81 (7,437,221.39)
OTHER FINANCING SOURCES (USES)
Transfers out (5,728,300.26) - - (891,654.63) - - (21,182,094.59) (27,802,049.48)
Transfers in 6,478,345.97 733,927.64 1,604,833.49 - 650,000.00 1,412,459.38 9,496,968.89 20,376,535.37
Compensation for Damages 461.87 48,693.00 14,331.56 - - - 21,619.00 85,105.43
Asset Disposition 354,605.99 41,190.25 610.50 (18,158.00) - - 11,541.88 389,790.62
Payment to Community Foundation of the Ozarks - - - - - - (155,725.51) (155,725.51)
Total other financing source (uses) 1,105,113.57 823,810.89 1,619,775.55 (909,812.63) 650,000.00 1,412,459.38 (11,807,690.33) (7,106,343.57)
Net change in fund balances (515,496.08) 138,141.93 399,582.57 539,286.06 1,634,375.14 (7,004,070.06) (9,735,384.52) (14,543,564.96)
Fund balances - beginning 7,805,256.75 359,536.62 529,369.00 7,150,555.72 6,372,273.64 7,174,622.31 21,341,036.17 50,732,650.21
Prior period adjustments 597.36 (69.93) - - - - - 527.43
Fund balances - ending $ 7,290,358.03 $ 497,608.62 $ 928,951.57 $ 7,689,841.78 $ 8,006,648.78 $ 170,552.25 $ 11,605,651.65 $ 36,189,612.68
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, 2018
($14,543,564.96)
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 depereciation was more or (less) than capital
outlays.14,177,228.11
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 activiites but not in the governmental funds.(434,701.63)
Changes in the assets, liabilities, and deferred inflows and outflows related to the City's retiree health care plan that occurred during the current year that
do not require current financial resources are reported on the statement of activiites but not in the governmental funds.47,886.79
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.
(146,902.02)
Revenues in the statment of activities that do not provide current financial resources are not reported as revenues in governmental funds.101,558.92
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.343,692.30
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.84,928.22
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.8,429,818.54
Change in net position of governmental activities $8,059,944.27
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, 2018
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
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:
Pooled cash and investments $ 3,481,639.29 $ 6,434,730.58 $ 1,955,857.59 $ 225,202.55 $ 406,611.63 $ 352,467.57 $ 12,856,509.21 $ 6,654,051.99
Investments - - - - - - - 348,660.22
Utilities charges, net 982,212.71 1,069,866.06 423,101.47 - - - 2,475,180.24 -
Special assessments 27,161.03 4,781.25 - - - - 31,942.28 -
Other 36,166.82 1,087.08 1,110.96 - 5,000.00 - 43,364.86 58,422.78
Notes receivable - - - - - - - 133,455.78
Interest 2,152.21 - - - - - 2,152.21 180.29
Grants 4,425.27 - 183.89 - - - 4,609.16 36.99
Inventory - 659,522.03 - 11,011.73 2,962.62 24,450.60 697,946.98 187,482.57
Prepaid items 23,806.80 4,272.09 1,569.17 180.98 27.97 890.93 30,747.94 152,092.48
Total current assets 4,557,564.13 8,174,259.09 2,381,823.08 236,395.26 414,602.22 377,809.10 16,142,452.88 7,534,383.10
Noncurrent assets:
Rest cash and cash equivalents 6,579,977.43 - - - - - 6,579,977.43 -
Net pensions assets 670,433.52 103,708.08 417,783.83 103,607.59 58,007.62 75,162.28 1,428,702.92 241,577.17
Land 537,677.99 - 112,239.55 - 1,335,100.00 - 1,985,017.54 37,500.00
Buildings 8,087,953.35 356,243.98 4,928,941.51 163,674.80 12,204,540.43 1,006,876.94 26,748,231.01 53,906.45
Equipment 7,411,041.63 2,876,727.49 3,741,613.69 463,244.36 159,032.60 540,900.76 15,192,560.53 6,193,755.49
Other improvements 153,202,406.31 64,880,159.10 344,022.92 1,972,744.42 - 3,394,410.63 223,793,743.38 155,653.19
Construction in progress 133,205.50 1,603,370.88 - - - - 1,736,576.38 -
Accumulated depreciation (53,889,151.43) (24,656,190.25) (4,431,226.73) (1,290,807.66) (377,224.66) (1,406,765.26) (86,051,365.99) (4,566,856.87)
Total noncurrent assets 122,733,544.30 45,164,019.28 5,113,374.77 1,412,463.51 13,379,455.99 3,610,585.35 191,413,443.20 2,115,535.43
Total assets 127,291,108.43 53,338,278.37 7,495,197.85 1,648,858.77 13,794,058.21 3,988,394.45 207,555,896.08 9,649,918.53
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflow from pension plan 85,487.20 12,047.83 57,814.07 16,114.28 (23,406.90) 14,394.50 162,450.98 31,457.88
Deferred outflow from retiree health plan 4,198.76 450.19 2,906.32 987.28 54.76 416.62 9,013.93 3,483.96
Total deferred outflows of resources 89,685.96 12,498.02 60,720.39 17,101.56 (23,352.14) 14,811.12 171,464.91 34,941.84
The notes to financial statements are an integral part of this statement.
Business-type Activities
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2018
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 272,184.14 390,301.35 159,666.97 8,427.06 30,722.61 31,092.01 892,394.14 166,911.44
Salaries and benefits payable 65,407.75 9,370.66 44,349.62 24,471.91 25,472.38 44,852.71 213,925.03 39,072.19
Interest payable 586,321.76 - - - - - 586,321.76 -
Other liabilities 319,391.47 298,823.06 152,406.94 16,257.64 - - 786,879.11 -
Estimated claims payable - - - - - - - 724,500.00
Payable to other funds - - - - 164,646.45 68,086.72 232,733.17 -
Due to other governments 24,025.71 50,659.97 - - - - 74,685.68 -
Unearned revenues - - - 65,390.04 36,238.30 11,333.95 112,962.29 -
Current portion of long-term debt
Revenue bonds payable 5,627,000.00 605,000.00 - - - - 6,232,000.00 -
Special oblig bonds payable - - 140,000.00 - - - 140,000.00 -
Total current liabilities 6,894,330.83 1,354,155.04 496,423.53 114,546.65 257,079.74 155,365.39 9,271,901.18 930,483.63
Noncurrent liabilities:
Compensated absences payable 54,487.40 8,477.98 45,182.63 20,095.20 17,311.34 28,566.57 174,121.12 64,410.40
Net OPEB obligation 354,382.00 37,997.00 245,297.00 83,328.00 4,622.00 35,163.00 760,789.00 294,052.00
Advances from other funds - - 432,161.82 - - - 432,161.82 -
Revenue bonds payable 61,408,000.00 9,826,358.21 - - - - 71,234,358.21 -
Special oblig bonds payable - - 2,801,415.90 - - - 2,801,415.90 -
Est landfill post closure cost - - 18,000.00 - - - 18,000.00 -
Total noncurrent liabilities 61,816,869.40 9,872,833.19 3,542,057.35 103,423.20 21,933.34 63,729.57 75,420,846.05 358,462.40
Total liabilities 68,711,200.23 11,226,988.23 4,038,480.88 217,969.85 279,013.08 219,094.96 84,692,747.23 1,288,946.03
DEFERRED INFLOWS OF RESOURCES
Deferred inflow from pension plan 243,803.96 41,104.07 151,608.05 34,341.10 43,653.16 61,327.16 575,837.50 127,706.63
Deferred inflow from retiree health plan 13,784.95 1,478.03 9,541.72 3,241.34 179.79 1,367.79 29,593.62 11,438.21
Total deferred inflows of resources 257,588.91 42,582.10 161,149.77 37,582.44 43,832.95 62,694.95 605,431.12 139,144.84
NET POSITION
Net investment in capital assets 48,472,368.35 34,633,957.28 1,325,457.83 1,308,855.92 13,321,448.37 3,535,423.07 102,597,510.82 1,873,958.26
Restricted for depreciation and replacement - 150,000.00 - - - - 150,000.00 -
Restricted for emergencies 1,707,375.00 936,008.00 583,140.00 97,350.00 112,650.00 157,252.00 3,593,775.00 -
Unrestricted 8,232,261.90 6,361,240.78 1,447,689.76 4,201.92 13,761.67 28,740.59 16,087,896.62 6,382,811.24
Total net position $ 58,412,005.25 $ 42,081,206.06 $ 3,356,287.59 $ 1,410,407.84 $ 13,447,860.04 $ 3,721,415.66 122,429,182.44 $ 8,256,769.50
851,802.97
$ 123,280,985.41
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2018
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.
Business-type Activities
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 $ 4,708,825.99 $ 4,081,216.00 $ 2,609,457.26 $ - $ - $ - $ 11,399,499.25 $ -
Commerical charges 2,454,904.58 2,629,572.71 46,990.00 - - - 5,131,467.29 -
Transfer station charges - - 1,538,247.03 - - - 1,538,247.03 -
Other fees and charges 135,976.75 297,448.79 78,149.50 - - - 511,575.04 15,334.89
Concession revenues - - - 48,932.65 - 52,953.90 101,886.55 -
Internal charges 9,288.71 - - - - - 9,288.71 7,309,255.81
Usage fees - - - 442,888.78 430,686.69 296,805.43 1,170,380.90 12,741.31
Miscellaneous 2,104.04 23,724.15 89,181.21 1,532.30 4,940.45 1,204.21 122,686.36 2,551.04
Total operating revenues 7,311,100.07 7,031,961.65 4,362,025.00 493,353.73 435,627.14 350,963.54 19,985,031.13 7,339,883.05
OPERATING EXPENSES
Personnel services 1,783,901.93 252,706.08 1,182,283.01 374,022.07 423,165.03 672,158.38 4,688,236.50 1,017,686.22
Materials & supplies 821,473.73 1,408,358.51 221,409.50 97,274.66 147,320.05 166,221.12 2,862,057.57 591,578.39
Contractual services 961,848.11 3,051,397.58 1,696,730.45 51,771.41 117,889.68 79,403.74 5,959,040.97 4,869,502.83
General operating expenses 464,830.13 437,158.89 47,148.03 2,036.17 3,442.24 1,882.62 956,498.08 82,011.01
Special programs 42,246.19 139,368.45 66,265.71 3,422.76 19,761.87 67,520.88 338,585.86 1,530.02
Internal service expenses 166,530.18 156,726.29 560,966.68 32,916.23 8,968.00 44,719.59 970,826.97 7,157.00
Depreciation 4,277,107.12 1,825,123.66 347,711.05 130,782.90 321,737.08 300,906.82 7,203,368.63 399,317.25
Total operating expenses 8,517,937.39 7,270,839.46 4,122,514.43 692,226.20 1,042,283.95 1,332,813.15 22,978,614.58 6,968,782.72
Operating income (loss) (1,206,837.32) (238,877.81) 239,510.57 (198,872.47) (606,656.81) (981,849.61) (2,993,583.45) 371,100.33
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 311.64 - 314.41 - - - 626.05 314.41
Investment revenue 106,912.69 22,794.98 10,142.56 (951.67) (3,606.94) (2,901.10) 132,390.52 36,914.26
Gain from sale of asset 6,831.04 1,162.42 131.05 - - 3,928.38 12,052.89 29,740.00
Compensation for damages 29,412.62 3,792.57 250.00 - - - 33,455.19 14,482.60
Loss on sale of asset (12,117.50) - (294.49) - - - (12,411.99) -
Storm damage (8,171.45) - (602.00) - - - (8,773.45) (4,619.60)
Interest and other charges (1,516,173.77) (373,161.77) (112,927.21) - (2,105.91) (1,314.03) (2,005,682.69) -
Total nonoperating revenues (expenses) (1,392,994.73) (345,411.80) (102,985.68) (951.67) (5,712.85) (286.75) (1,848,343.48) 76,831.67
Income (loss) before contributions and
transfers (2,599,832.05) (584,289.61) 136,524.89 (199,824.14) (612,369.66) (982,136.36) (4,841,926.93) 447,932.00
Contributed cap - connect fee 157,809.00 - - - - - 157,809.00 -
Contributed cap - developers 1,208,362.76 195,360.84 - - - - 1,403,723.60 -
Contributed cap - donations - - - - 30,800.00 - 30,800.00 -
Contributed cap - government 237,786.59 - - 97,585.75 10,643.22 1,519,146.82 1,865,162.38 -
Transfers in 4,437,795.00 1,610,040.59 - 151,937.56 391,581.12 880,426.94 7,471,781.21 -
Transfers out (101.90) - - - - - (101.90) (46,165.20)
Change in net position 3,441,819.40 1,221,111.82 136,524.89 49,699.17 (179,345.32) 1,417,437.40 6,087,247.36 401,766.80
Total net position - beginning 55,556,682.01 40,894,321.30 3,382,511.32 1,354,291.05 13,626,371.15 2,316,025.75 117,130,202.58 7,987,250.61
Prior period adjustments (586,496.16) (34,227.06) (162,748.62) 6,417.62 834.21 (12,047.49) (788,267.50) (132,247.91)
Total net position - ending $ 58,412,005.25 $ 42,081,206.06 $ 3,356,287.59 $ 1,410,407.84 $ 13,447,860.04 $ 3,721,415.66 $ 122,429,182.44 $ 8,256,769.50
Adjustments to reflect the consolidation of internal service fund activities related to the enterprise fund 58,074.34
Change in net position of business-type activities 6,145,321.70
Business-type Activities
The notes to financial statements are an integral part of this statement.
City of Cape Girardeau
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2018
Government
Total Activities
Indoor Sports Sports Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complex Complexes Funds Funds
$ 7,250,350.18 $ 7,198,329.71 $ 4,895,416.62 $ 551,924.90 $ 534,988.37 $ 437,685.56 $ 20,868,695.34 $ 233,978.32
9,288.71 - 46,990.00 - - - 56,278.71 7,247,893.63
- - - - - - - 4,696.81
(1,840,717.49) (4,338,888.60) (2,012,037.34) (206,277.39) (400,492.36) (436,286.89) (9,234,700.07) (5,428,129.65)
(1,762,512.22) (244,167.93) (1,158,166.76) (365,889.21) (406,235.34) (655,454.75) (4,592,426.21) (949,083.61)
(181,866.42) (156,726.29) (560,966.68) (32,916.23) (9,673.87) (44,719.59) (986,869.08) (7,157.00)
(364,000.54) (349,432.78) - - - - (713,433.32) -
(18,743.97) (279,896.85) - - - - (298,640.82) -
Other payments (294.35) (252.35) (246.30) - - - (793.00) -
- 3,091,503.90 1,828,964.91 1,210,989.54 (53,157.93) (281,413.20) (698,775.67) 5,098,111.55 1,102,198.50
312,795.00 - - 151,937.56 391,581.12 880,426.94 1,736,740.62 -
- - - - - - - (44,965.20)
- - (13,543.27) - (2,105.91) (1,314.03) (16,963.21) -
33,029.59 - 1,452.61 - - - 34,482.20 277.42
Short-term advance from other funds - - - - 164,646.45 68,086.72 232,733.17 -
Repayment of long-term advance from other funds - - (19,280.51) - - (23,491.36) (42,771.87) -
Insurance claims storm damage - 24,597.42 250.00 - - - 24,847.42 -
Storm damage (8,171.45) - (602.00) - - - (8,773.45) (4,619.60)
337,653.14 24,597.42 (31,723.17) 151,937.56 554,121.66 923,708.27 1,960,294.88 (49,307.38)
- - - - - - - - 166,769.00 - - - 30,800.00 - 197,569.00 -
(137,002.72) (227,920.69) (16,000.00) - (62,566.37) (8,000.00) (451,489.78) (371,203.51)
(803,569.86) (1,790,657.65) (9,203.83) - - - (2,603,431.34) -
(4,535,000.00) (585,000.00) (340,000.00) - - - (5,460,000.00) -
(1,581,114.78) (376,856.26) (96,314.28) - - - (2,054,285.32) -
14,831.04 1,071.42 3,231.05 - - 3,928.38 23,061.89 29,740.00
- 15,591.00 - - - - 15,591.00 -
Principal received on promissory note - - - - - - - 18,839.11
Interest received on promissory note - - - - - - - 4,119.28
375,000.00 1,609,076.04 - - - - 1,984,076.04 -
- - - - - - - (1,200.00)
3,750,000.00 - - - - - 3,750,000.00 -
(2,750,087.32) (1,354,696.14) (458,287.06) - (31,766.37) (4,071.62) (4,598,908.51) (319,705.12)
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
Purchase of capital assets
Proceeds from transfer 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, 2018
Business-type Activities - Enterprise Funds
Payments made in lieu of franchise taxes
Transfers to other funds
Net cash provided (used) by operating activities
Net cash (used) by noncapital financing
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Interest paid to other funds
See Accompanying Notes to Basic Financial Statements.
Government
Total Activities
Indoor Sports Sports Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complex Complexes Funds Funds
140,719.65 87,732.48 30,285.55 1,378.70 526.31 764.71 261,407.40 100,970.43
212,504.73 (586,598.67) (751,264.86) (100,158.33) (241,468.40) (221,625.69) (1,688,611.22) (834,156.43)
353,224.38 (498,866.19) (720,979.31) (98,779.63) (240,942.09) (220,860.98) (1,427,203.82) (733,186.00)
1,032,294.10 - - - - - 1,032,294.10 -
5,547,683.33 - - - - - 5,547,683.33 -
Prior period adjustment - - - - - - - - $ 6,579,977.43 $ - $ - $ - $ - $ - $ 6,579,977.43 $ -
$ (1,206,837.32) $ (238,877.81) $ 239,510.57 $ (198,872.47) $ (606,656.81) $ (981,849.61) $ (2,993,583.45) $ 371,100.33
Depreciation expense 4,277,107.12 1,825,123.66 347,711.05 130,782.90 321,737.08 300,906.82 7,203,368.63 399,317.25
11,866.96 151,370.07 (17,210.91) 34.83 (19,479.39) (19,449.47) 107,132.09 296,014.54
116,671.77 67,656.98 33,903.76 309.03 (807.35) 4,185.54 221,919.73 -
(53,544.69) (40,552.20) (69,181.90) (87,476.57) 9,276.54 (14,554.43) (256,033.25) (117,885.01)
Customer receivables (129,316.68) (127,628.17) 582,732.94 40.00 (5,000.00) - 320,828.09 -
Interfund receivables - - - - - - - 541.21
- - - - - - - 9,276.65
Prepaid expenses 622.34 946.66 225.88 (77.98) (27.97) (537.95) 1,150.98 (12,207.54)
OPEB liability 46,849.89 44,385.41 76,609.56 91,999.68 3,446.23 24,066.68 287,357.45 169,758.34
Pension asset/liability 28,084.51 4,704.94 16,688.59 3,609.75 4,206.92 7,191.38 64,486.09 16,729.28
Inventory - 141,835.37 - (7,469.48) 4,787.21 (863.94) 138,289.16 (15,963.95)
Unearned revenue - - - 13,962.38 7,104.34 (17,870.69) 3,196.03 (14,482.60)
- - - - - - - $ 3,091,503.90 $ 1,828,964.91 $ 1,210,989.54 $ (53,157.93) $ (281,413.20) $ (698,775.67) $ 5,098,111.55 $ 1,102,198.50
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, 2018
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 $ 1,987,420.12
Cash and cash equivalents 700.00
Prepaid items 32,072.37
Real estate taxes 144,980.38
Property taxes 27,104.87
Grants 33,230.82
Other 7,752.20
Total assets $ 2,233,260.76
LIABILITIES
Deferred revenues $ 167,631.15
Accounts payable 86,088.60
Salaries and benefits payable 29,636.29
Other liabilities 1,949,904.72
Total liabilities $ 2,233,260.76
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Fiduciary Net Position
June 30, 2018
37
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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 w ere used solely to
retire the debt. All debt was retired and remaining assets, $162.10 in cash, were returned to the City
prior to the current year. No activity occurred 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. During the current year the
CGMDF and CGPSF were dissolved. The remaining assets of the CGPSF were transferred to the Police
and Fire Funds of the Community Foundation of the Ozarks. The CGMDF had no assets. The funds of
the Community Foundation of the Ozarks will be used for the benefits of the City’s Fire and Police
divisions but are not included in these financial statements.
38
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
2. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the primary government and its
component units. The effect of inter-fund 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 con sidered 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.
39
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued
However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due. Those revenues susceptible to accrual
are property taxes, franchise taxes, special assessments, licenses, interest revenue, and charges for
services. Sales taxes collected and held by the state at year-end on behalf of the City also are
recognized as revenue. Fines and permit revenues are not susceptible to accrual because, generally,
they are not measurable until received in cash. With the current financial resources measurement focus,
only current assets and current liabilities are generally included on the balance sheet.
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 V accounts for the receipt and expenditure of a capital
improvement sales tax that was approved by voters for street construction and improvements.
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 fund accounts for the operation of the municipal golf course.
The indoor sports complex fund accounts for the operation of the City’s new indoors sports
complex.
40
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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.
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 non-operating 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 non-operating revenues and expenses.
41
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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, 2018
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
8. Inter-fund 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 inter-fund 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, 2018 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, 2018
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.
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 Inter-fund 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 “inter-fund
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 inter-fund loan receivables and payables are reported as advances in
the governmental balance sheet and proprietary statement of net position. Fund balances equal to inter-
fund 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 inter-fund 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 inter-fund loan receivables on proprietary and government-wide statements of net position.
44
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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 about the
fiduciary net position of the Missouri Local Government Employees Retirement System (LAGERS)
and additions to/deductions from LAGERS fiduciary net position have been determined on the
same basis as they are reported by LAGERS. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
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, forty-five retirees and thirty-two employees meet those eligibility
requirements. The City provides health care coverage for them until age 65. The costs of retirees’
health care benefits are recognized as expenditures as premiums are paid. For the year ending June 30,
2018, those costs totaled $651,337.00.
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 three retiree spouses participating in the health and dental insurance programs as
of June 30, 2018.
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, 2018 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, 2018
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 8, 2019, 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, 2018, and reported at fair value, are as follows:
Deposits:
Demand Deposits $ 0.00
Interest Bearing Deposit Accounts 163,101.00
Total Deposits $ 163,101.00
Investments:
Negotiable Instruments $50,934,674.44
Federal Home Loan Bank 499,900.00
Federal Farm Credit Bureau 495,075.00
Federal Home Loan Mortgage Corp. 977,779.99
U.S. Treasury 997,755.00
Total Investments $53,905,184.43
Accrued Interest Revenue $ 120,212.85
Total Pooled Deposits and Investments $54,188,498.28
As of June 30, 2018, the City had the following pooled investments:
Investments Maturities Fair Value
Negotiable Instruments 07/05/18 – 06/28/23 $50,934,674.44
Federal Home Loan Bank 09/14/18 – 09/14/18 499,900.00
Federal Farm Credit Bureau 03/06/19 – 03/06/19 495,075.00
Federal Home Loan Mort. Corp. 11/29/19 – 04/28/22 977,779.99
U.S. Treasury 08/31/18 – 09/13/18 997,755.00
Total $53,905,184.43
46
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE B - DEPOSITS AND INVESTMENTS - continued
Reconciliation of Pooled Cash and Investments to Statements:
Governmental Pooled Cash and Investments $39,344,568.95
Business-type Pooled Cash and Investments 12,856,509.21
Fiduciary Pooled Cash and Investments 1,987,420.12
Total Pooled Cash and Investments $54,188,498.28
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, 2018, and reported at fair value, are as follows:
Deposits:
Demand Deposits $ 382,075.38
Interest Bearing Deposit Accounts 6,270,123.65
Total Deposits $6,652,199.03
Investments:
U. S. Treasury Note $ 348,660.22
Total Investments $ 348,660.22
Total Non-pooled Deposits and Investments $7,000,859.25
As of June 30, 2018, the City had the following non-pooled investments
U. S. Treasury Note 12/15/18 – 12/15/18 $348,660.22
Total $348,660.22
Reconciliation of Non-pooled Deposits and Investments to Statements:
Governmental Cash and Cash Equivalents $ 71,521.60
Governmental Investments 348,660.22
Business-type Restricted Cash and Cash Equivalents 6,579,977.43
Fiduciary Cash and Cash Equivalents 700.00
Total Non-pooled Deposits and Investments $7,000,859.25
Custodial Credit Risk:
Deposits in financial institutions, reported as components of cash, cash equivalents, and
investments, had a bank balance of $62,532,726.23 at June 30, 2018, 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, 2018
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, 2018
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, 2018, the City
had no concentration of credit risk.
48
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE C - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August
25, 2017, 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 $ .3033/100.00 assessed valuation
Public Health .0568/100.00 assessed valuation
Special Business District .7076/100.00 assessed valuation
#2 (Ad Valorem)
Property tax receivable balances as of June 30, 2018 are as follows:
Special
General Public Business
Revenue Health District Total
Current property tax $ 82,205.12 $ 15,394.83 $ 478.34 $ 98,078.29
Delinquent property tax 98,250.33 18,405.75 - 116,656.08
Reserve for doubtful
Property taxes (9,958.92) (1,865.45) - (11,824.37)
Net property tax receivable
$170,496.53 $ 31,935.13 $ 478.34 $ 202,910.00
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, 2018 is as follows:
Balance Current Year Balance
July 1, 2017 Additions Deductions Depreciation* June 30, 2018**
Land
$ 9,346,963.15 $ 51,849.71 $ 19,500.00 $ - $ 9,379,312.86
Buildings 20,111,315.60 17,658,252.50 - 1,305,349.52 36,464,218.58
Land improvements 18,490,522.48 751,313.55 - 881,742.04 18,360,093.99
Equipment 10,792,462.46 1,893,413.89 54,089.53 1,652,581.52 10,979,205.30
Infrastructure 122,328,199.33 15,061,710.58 - 5,066,091.04 132,323,818.87
Construction in progress 19,225,314.42 4,711,010.92 17,016,078.52 - 6,920,246.82
Total capital assets $200,294,777.44 $40,127,551.15 $17,089,668.05 $8,905,764.12 $ 214,426,896.42
* 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, 2018
NOTE D - CHANGES IN CAPITAL ASSETS – Continued
Following is a summary of the capital assets for business-type activities on the government-wide
statement of net position for the year ended June 30, 2018:
Balance Current Year Balance
July 1, 2017 Additions Deductions Depreciation June 30, 2018
Land $ 1,985,017.54 $ - $ - $ - $ 1,985,017.54
Buildings 17,405,553.14 28,822.04 - 698,047.16 16,736,328.02
Improvements other
than buildings 154,123,879.78 7,450,452.56 - 5,635,178.21 155,939,154.13
Equipment 4,268,604.16 3,745,367.22 136,141.34 870,143.26 7,007,686.78
Construction in progress 6,600,091.87 1,388,147.77 6,251,663.26 - 1,736,576.38
Total capital assets $184,383,146.49 $12,612,789.59 $ 6,387,804.60 $ 7,203,368.63 $ 183,404,762.85
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrative $ 57,676.74
Development Services 804,771.55
Parks and Recreation 1,387,648.99
Public Safety 1,136,339.98
Public Works 5,120,009.61
Total $ 8,506,446.87
Business-Type Activities:
Golf Course $ 130,782.90
Sewer 4,277,107.12
Sporting Complexes 300,906.82
Sportsplex 321,737.08
Solid Waste 347,711.05
Water 1,825,123.66
Total $ 7,203,368.63
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, 2018:
Governmental
Activities
Other
Debt*
Revenue
Bonds
Total
Debt payable June 30, 2017 $38,832,656.44 $ 713,800.00 $39,546,456.44
Discount/Premium
Amortization
(25,095.18) - (25,095.18)
Retired (8,356,823.36) (47,900.00) (8,404,723.36)
Debt payable June 30, 2018 $30,450,737.90 $ 665,900.00 $31,116,637.90
*Other Debt includes Notes Payable and Special Obligation Bonds.
50
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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, 2018:
Debt payable July 1, 2017 $3,278,346.24 $ 82,590,052.70 $85,868,398.94
Discount/Premium
Amortization 3,069.66 (3,694.49) (624.83)
Accumulated Interest - -
Retired (340,000.00) (5,120,000.00) (5,460,000.00)
Debt payable June 30, 2018 $2,941,415.90 $ 77,466,358.21 $80,407,774.11
*Other Debt includes Special Obligation Bonds
Bonds payable for governmental and business-type activities at June 30, 2018 are comprised of the
following individual issues:
$ 965,000.00 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1996 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2019 5.900% $ 965,000.00 $ 42,705.00 $1,007,705.00
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, 2018 was $675,500. The reserve fund yields 5.70%.
During the fiscal year ended June 30, 2001, certain bonds originally issued by the State Environmental
Improvement and Energy Resources Authority as part of the State Revolving Fund Program were
refunded. Annual debt service savings resulting from this transaction are to be used to offset City debt
service payments due on Series 1996 Bonds. During the fiscal year ended June 30, 2018, City interest
expense was reduced by $11,107.50 as a result of this transaction. Over the remaining life of these
bonds, the City will receive net present value benefits of approximately $13,964.38 from this
transaction.
51
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS – Continued
$ 4,865,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
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
$4,865,000.00 $400,976.25 $5,265,976.25
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, 2018 was $3,405,500. The reserve fund yields 5.16%.
52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
Special Obligation Bonds, Series 2010A
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. These bonds were paid off
during the fiscal year ended June 30, 2018.
$665,900.00 Waterworks Revenue Bonds, Series 2010 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Admin Fee
Due
Total
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
$665,900.00 $64,675.10 $20,038.25 $750,613.35
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.
53
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
$10,510,000.00 Waterworks System Refunding Revenue Bonds Series 2012A due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
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
$10,510,000.00 $3,081,068.82 $13,591,068.82
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.
54
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
$27,137,000.00 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
2019 1.430% $ 1,352,000.00 $ 383,254.30 $ 134,005.00 $ 1,869,259.30
2020 1.430% 1,385,000.00 363,806.30 127,205.00 1,876,011.30
2021 1.430% 1,419,000.00 343,879.25 120,237.50 1,883,116.75
2022 1.430% 1,455,000.00 323,458.85 113,097.50 1,891,556.35
2023 1.430% 1,491,000.00 302,523.65 105,777.50 1,899,301.15
2024 1.430% 1,527,000.00 281,073.65 98,277.50 1,906,351.15
2025 1.430% 1,565,000.00 259,101.70 90,595.00 1,914,696.70
2026 1.430% 1,604,000.00 236,586.35 82,722.50 1,923,308.85
2027 1.430% 1,644,000.00 213,506.15 74,652.50 1,932,158.65
2028 1.430% 1,684,000.00 189,853.95 66,382.50 1,940,236.45
2029 1.430% 1,726,000.00 165,622.60 57,910.00 1,949,532.60
2030 1.430% 1,769,000.00 140,790.65 49,227.50 1,959,018.15
2031 1.430% 1,813,000.00 115,336.65 40,327.50 1,968,664.15
2032 1.430% 1,857,000.00 89,253.45 31,207.50 1,977,460.95
2033 1.430% 1,904,000.00 62,533.90 21,865.00 1,988,398.90
2034 1.430% 1,950,000.00 35,142.25 12,287.50 1,997,429.75
2035 1.430% 992,000.00 7,092.80 2,480.00 1,001,572.80
$27,137,000.00 $3,512,816.45 $1,228,257.50 $31,878,073.95
Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were issued
by the City on June 19, 2012. A 1% administrative fee and a 1.43% interest rate were originally
charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to .5%. Principal
was 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.
55
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
$2,839,000.00 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
2019 1.390% $ 143,000.00 $ 38,968.65 $ 14,017.50 $ 195,986.15
2020 1.390% 147,000.00 36,967.05 13,297.50 197,264.55
2021 1.390% 150,000.00 34,909.85 12,557.50 197,467.35
2022 1.390% 153,000.00 32,817.90 11,805.00 197,622.90
2023 1.390% 157,000.00 30,677.30 11,035.00 198,712.30
2024 1.390% 161,000.00 28,481.10 10,245.00 199,726.10
2025 1.390% 165,000.00 26,229.30 9,435.00 200,664.30
2026 1.390% 169,000.00 23,921.90 8,605.00 201,526.90
2027 1.390% 173,000.00 21,558.90 7,755.00 202,313.90
2028 1.390% 177,000.00 19,140.30 6,885.00 203,025.30
2029 1.390% 181,000.00 16,666.10 5,995.00 203,661.10
2030 1.390% 185,000.00 14,136.30 5,085.00 204,221.30
2031 1.390% 189,000.00 11,550.90 4,155.00 204,705.90
2032 1.390% 193,000.00 8,909.90 3,205.00 205,114.90
2033 1.390% 197,000.00 6,213.30 2,235.00 205,448.30
2034 1.390% 202,000.00 3,461.10 1,245.00 206,706.10
2035 1.390% 97,000.00 674.15 242.50 97,916.65
$2,839,000.00 $355,284.00 $127,800.00 $3,322,084.00
Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were issued
by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were originally
charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to .5%. Principal
was 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.
56
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
$31,229,000.00 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
2019 1.390% $1,577,000.00 $ 428,634.30 $ 154,185.00 $ 2,159,819.30
2020 1.390% 1,613,000.00 406,588.90 146,255.00 2,165,843.90
2021 1.390% 1,651,000.00 384,036.15 138,142.50 2,173,178.65
2022 1.390% 1,689,000.00 360,955.20 129,840.00 2,179,795.20
2023 1.390% 1,728,000.00 337,346.05 121,347.50 2,186,693.55
2024 1.390% 1,768,000.00 313,187.85 112,657.50 2,193,845.35
2025 1.390% 1,808,000.00 288,473.65 103,767.50 2,200,241.15
2026 1.390% 1,850,000.00 263,196.50 94,675.00 2,207,871.50
2027 1.390% 1,893,000.00 237,335.55 85,372.50 2,215,708.05
2028 1.390% 1,935,000.00 210,876.90 75,855.00 2,221,731.90
2029 1.390% 1,981,000.00 183,820.55 66,122.50 2,230,943.05
2030 1.390% 2,026,000.00 156,131.75 56,162.50 2,238,294.25
2031 1.390% 2,072,000.00 127,810.50 45,975.00 2,245,785.50
2032 1.390% 2,120,000.00 98,842.90 35,555.00 2,254,397.90
2033 1.390% 2,169,000.00 69,208.10 24,895.00 2,263,103.10
2034 1.390% 2,219,000.00 38,885.25 13,987.50 2,271,872.75
2035 1.390% 1,130,000.00 7,853.50 2,825.00 1,140,678.50
$31,229,000.00 $3,913,183.60 $1,407,620.00 $36,549,803.60
Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were issued
by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were originally
charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to .5%. Principal
was disbursed on this loan as needed.
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.
57
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
$3,618,447.51 Note Payable - Southeast Missouri State University Foundation due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
2025
2026
2027
3.26%
3.26%
2.77%
2.77%
435,537.95
447,568.41
280,504.28
447,182.03
$3,618,447.51
24,462.05
12,431.59
179,495.72
12,817.97
$521,552.49
460,000.00
460,000.00
460,000.00
460,000.00
$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. During the fiscal year ending June 30,
2017, the City entered into an agreement with Southeast Missouri State University for the university to
make $1.84 million in improvements to the City’s Capaha Park Baseball Field in exchange for the City
amending the original note dated February 4, 2013 to include two additional payments of $460,000.00
due on February 4, 2026 and 2027.
The total purchase price of the land 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.
The note payable was recorded at the net present value of the payments discounted at 3.26%. The note
payable was later adjusted for the two additional payments at the net present value of the payments
discounted at 2.77%.
Special Obligation Bonds, Series 2015B
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. These bonds were paid off during the
year ended June 30, 2018.
58
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
$8,090,000.00 Special Obligation Bonds, Series 2015A due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
$8,090,000.00 $2,020,641.32 $10,110,641.32
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.
59
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
$20,900,000.00 Special Obligation Bonds, Series 2016 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
$20,900,000.00 $4,786,706.34 $25,686,706.34
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 Specia l 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.
60
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE E - LONG-TERM OBLIGATIONS - Continued
Note Payable – Direct Loan from Missouri Transportation Finance Corporation
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 $3,265,100.00 were received December 1, 2015 and
August 1, 2016, respectively, under the agreement and were used to replace a bridge on South Sprigg
Street in the City of Cape Girardeau. This loan was paid in full during the year ended June 30, 2018.
The cash and investments available to service revenue bonds are $57,093.47 and $6,776,996.08 for the
governmental and business-type activities, respectively.
The cash and investments available to service the special obligation bonds are $22,158.24 and
$12,321.55 in governmental activities and business-type activities, respectively.
The annual requirements to amortize all debt outstanding as of June 30, 2018 including total interest
payments of $18,699,609.36 and total administrative fees of $2,783,715.75 are as follows:
Special
Year Ending Obligation Revenue Promissory
June 30, Bonds Bonds Note Total
2019 $ 3,648,503.76 $ 8,079,865.99 $460,000.00 $ 12,188,369.75
2020 2,233,178.76 7,060,255.06 460,000.00 9,753,433.82
2021 2,399,778.76 6,950,444.84 460,000.00 9,810,223.60
2022 2,517,253.76 5,301,930.68 460,000.00 8,279,184.44
2023 2,601,478.76 5,317,863.50 460,000.00 8,379,342.26
2024 2,623,128.76 5,332,655.47 460,000.00 8,415,784.23
2025 2,651,616.26 5,346,406.27 460,000.00 8,458,022.53
2026 2,251,616.26 5,365,127.23 460,000.00 8,076,743.49
2027 2,267,516.26 5,382,439.59 460,000.00 8,109,955.85
2028 2,285,335.00 5,400,353.03 - 7,685,688.03
2029 2,312,741.26 5,420,413.65 - 7,733,154.91
2030 2,330,878.76 5,437,713.50 - 7,768,592.26
2031 1,714,883.76 5,387,355.55 - 7,102,239.31
2032 892,033.76 5,409,373.75 - 6,301,407.51
2033 897,058.76 4,456,950.30 - 5,354,009.06
2034 901,133.76 4,476,008.60 - 5,377,142.36
2035 794,258.76 2,240,167.95 - 3,034,426.71
2036 474,952.50 - - 474,952.50
$35,797,347.66 $92,365,324.96 $4,140,000.00 $132,302,672.62
61
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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 $ 903,735.34
Total $ 903,735.34
Business-Type Activities:
Golf Course $ 0.00
Indoor Sports Complex 2,105.91
Sewer 1,516,173.77
Sporting Complexes 1,314.03
Solid Waste 112,927.21
Water 373,161.77
Total $ 2,005,682.69
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 $32,006,755.95.
NOTE F - DEFICIT FUND BALANCES/RETAINED EARNINGS
These following funds – Public Safety Foundation; Transportation Sales Tax III; Street Capital
Improvements; STP – Urban Grant Project; and Park System Improvements Phase 2 – had their total
liabilities exceed their total assets by $2,050.00; $19,571.69; $35.81; $35.81; and $5,162.77,
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.
62
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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 by 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, 2018 the following employees were covered by the benefits terms:
Retirees and Beneficiaries 252
Inactive, Non-retired Members 162
Active Members 383
Total 797
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. Additional adjustments are made to these rates based on
the over or under funded status of each plan with additional charges to finance any unfunded accrued
liability or credits to use a portion of the assets from plans that have more assets than accrued liability.
Employer annual contribution rates were 8.6% (General), 10.5% (Police) and 10.9% (Fire) of annual
covered payroll during the current year.
The original annual required contribution (ARC) was determined as part of the February 28, 2016
annual actuarial valuation using the entry age actuarial cost method.
63
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE G - PENSION PLAN – Continued
5. Net Pension Asset
The City’s net pension asset was measured as of June 30, 2018, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of February 28, 2018.
6. Actuarial Assumptions
The total pension liability in the February 28, 2018 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 28, 2018 valuation were based on the results of an
actuarial experience study for the period March 1, 2010 through February 28, 2015.
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 ar e
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% 5.16%
Fixed Income 26.00% 2.86%
Real Assets 21.00% 3.23%
Strategic Assets 10.00% 5.59%
64
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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 6/30/2017 $ 82,256,423 $ 77,060,543 $ 5,195,880
Changes for the year:
Service Cost - 1,616,796 (1,616,796)
Interest
Difference between expected and actual
experience
-
-
5,518,968
(725,901)
(5,518,968)
725,901
Contributions – employer 1,610,466
-
1,610,466
Net investment income 9,835,516 - 9,835,516
Benefit payments, including refunds (3,523,834) (3,523,834) -
Administrative expense (64,456) - (64,456)
Other changes (296,273) - (296,273)
Net changes 7,561,419 2,886,029 4,675,390
Balances at 6/30/2018 $ 89,817,842 $ 79,946,572 $ 9,871,270
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%
$1,482,345 $9,871,270 $19,204,533
65
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE G - PENSION PLAN – Continued
9. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended June 30, 2018 the City recognized pension expense of $2,128,170. 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 $ 360,519 $ (1,774,033) $ (1,413,514)
Differences in assumptions 1,185,938 - 1,185,938
Excess (deficit) in investment returns - (2,163,309) (2,163,309)
Total $ 1,546,457 $ (3,937,342) $ (2,390,885)
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year ended:
2019 $ 512,484
2020 (301,224)
2021 (1,504,466)
2022 (956,079)
2023 (126,315)
Thereafter (15,285)
Total $ (2,390,885)
10. Payable to the Pension Plan
At June 30, 2018 the City reported a payable of $128,080.72 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2018.
66
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS
1. Description
The City follows the provisions of GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. In addition to the relevant disclosures within this note
related to GASB Statement No. 75, the financial statements reflect a long-term liability and related
expenses of $11,123,949 and $651,337, 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 - 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, 2018, the City
paid the full premium cost for eligible retired employees who were hired prior to January 1, 2007. For
eligible employees hired on/after January 1, 2007, the City paid a percentage of the full premium cost
for retired employees with single coverage according to years of service at retirement. For employees
with 10 to 14 years of service at retirement, the City’s subsidy was 50%. The subsidy for employees
with 15 to 19 years of service was 60%, 20 to 24 years was 70%, and employees with more than 24
years of service at retirement received 100% subsidy. The retiree is responsible for the full cost of
dependent coverage. The plan is financed on a pay-as-you-go basis.
3. Employees Covered by Benefit Terms
As of June 30, 2018, the following employees were covered by the benefit terms:
Retirees 43
Active 192
Total 235
4. Total OPEB Liability
The City’s total OPEB liability of $11,123,949 was measured as of June 30, 2018, and was determined
by an actuarial valuation date of June 30, 2018 with no adjustments to get to the June 30, 2018
measurement date.
67
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS – Continued
5. Actuarial Assumptions and Other Inputs
Inflation - 3.25%
Salary increases - 3.25% plus merit / productivity increases as shown on the Missouri Local
Government Retirement System’s June 30, 2017 actuarial valuation
Discount Rate - 3.58% as of July 1, 2017 and 3.87% as of July 1, 2018
Healthcare cost trend rates - Medical / Rx cost trend rate of 8.0% for 2019, gradually decreasing to an
ultimate rate of 5.0% for 2025 and beyond. Dental cost trend rate of 4.0% for 2019, gradually
decreasing to an ultimate rate of 3.0% for 2021 and beyond.
Mortality - RPH-2017 Total Dataset Mortality Table fully generational using Scale MP-2017 (RPH-
2017 table is created based on RPH-2014 Total Dataset Mortality Table with 8 years of MP-2014
mortality improvement backed out, projected to 2017 using MP-2017 improvement.)
Actuarial Cost Method - Entry Age Normal
The discount rate was based on 20 Year Bond GO Index.
The plan has not had a formal actuarial experience study performed.
6. Changes in the Total OPEB Liability
Balance at June 30, 2017 $ 11,382,294
Changes for the Year:
Service Cost 303,952
Interest on Total OPEB Liability 407,566
Effect of Plan Changes -0-
Effect of Economic/Demographic Gains or Losses (519,247)
Effect of Assumptions Changes or Inputs 158,158
Benefit Payments (608,774)
Net Changes (258,345)
Balance at June 30, 2018 $ 11,123,949
68
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS – Continued
7. Sensitivity Analysis
The following presents the total OPEB liability of the City, calculated using the discount rate of 3.87%,
as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that
is one percentage point higher (4.87%) or lower (2.87%) than the current rate.
The following presents the total OPEB liability of the City, calculated using the current healthcare cost
trend rates as well as what the City’s total OPEB liability would be if it were calculated using trend
rates that are one percentage point higher or lower than the current trend rates.
Current Single
Discount
1% Decrease Rate Assumption 1% Increase
Net OPEB liability 11,990,973 $ 11,123,949 $ 10,335,684 $
Sensitivity of Net OPEB Liability as of June 30, 2018,
to the Current Single Discount Rate Assumption
Healthcare Cost
Trend Rates
1% Decrease Rate Assumption 1% Increase
Net OPEB liability 10,222,639 $ 11,123,949 $ 12,155,313 $
Sensitivity of Net OPEB Liability as of June 30, 2018,
to the Healthcare Cost Trend Rate Assumption
69
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS – Continued
8. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended June 30, 2018, the City recognized OPEB expense of $651,337. At June 30, 2018,
the City reported deferred outflows of resources and deferred inflows of resources related to OP EB
from the following sources:
Deferred Deferred
Outflows of Inflows
Resources Resources
Differences between expected and actual experience $ - $(432,706)
Changes of assumptions or other inputs 131,798 -
Total $131,798 $ (432,706)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in the City’s OPEB expense as follows:
Year Ended June 30:
2019 $ (60,181)
2020 (60,181)
2021 (60,181)
2022 (60,181)
2023 (60,184)
Thereafter -
Total $ (300,908)
NOTE I - INTEREST EXPENSE
Interest and handling charges totaling $1,013,872.62, excluding $1,160.25 of inter-fund interest, were
incurred by governmental funds during the year ended June 30, 2018. Interest and handling charges
totaling $1,988,719.48, excluding $16,963.21 of inter-fund interest, were incurred by proprietary funds
during the year ended June 30, 2018. No interest cost was capitalized as part of the cost of assets
constructed during the period.
70
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE J - INTER-FUND 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 inter-fund transfers for the year ended June 30, 2018:
Fund Transfer From Transfer To
General Fund $ 5,728,300.26 $ 6,478,345.97
Airport Fund - 733,927.64
Park and Recreation Fund - 1,604,833.49
Convention and Tourism Fund 724.914.12 -
Downtown Business District 88,673.00 -
Public Safety Trust Fund 24,569.00 1,200.00
A.C. Brase Foundation 30,000.00 ¤ -
Park & Recreation Foundation 7,000.00 -
Public Safety Trust Fund II 1,810,220.04 2,966,340.54
Casino Revenue Fund 891,654.63 -
Riverfront Region Economic Dev Fund 150,000.00 194,273.53
Motor Fuel Tax Fund 1,285,000.00 3,292,784.49
Transportation Sales Trust I 30.00 -
Transportation Sales Trust IV 650,000.00 238,673.00
Transportation Sales Trust V - 650,000.00
Cap Imp Sales Tax - Water System Improve 2,959,076.04 -
Cap Imp Sales Tax - Sewer System Improve 3,750,000.00 ¤ -
Park/Storm Water Sales Tax-Capital 2,556,619.38 30,000.00
Fire Sales Tax 2,541,283.54 -
Parks/Storm Water Sales Tax 1,234,809.59 -
General Capital Improvements - 1,412,459.38
Street Capital Improvements 3,006,238.64 -
Park Capital Improvements 27,145.39 -
STP-Urban Grant Projects 286,515.85 -
Community Dev Block Grant Project 50,000.00 -
Stormwater System Improvements - 278,408.57
Park System Improvements - 2,488,245.66
Park System Improvements Ph 2 - 7,043.10
Sewer Fund 101.90 4,437,795.00
Water Fund - 1,610,040.59
Golf Course Fund - 151,937.56
Indoor Sportsplex - 391,581.12
Sporting Complexes Fund - 880,426.94
Fleet Management Fund 19,415.20 -
Employee Benefits Fund 26,750.00 -
$ 27,848,316.58 $ 27,848,316.58
71
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE J - INTER-FUND ACTIVITY - Continued
B. The following is a summary of inter-fund balances as of June 30, 2018:
Advance to/from other funds:
Advances from Advances to
Casino Revenue Fund $ 432,161.82 $ -
Solid Waste Fund - 432,161.82
$ 432,161.82 $ 432,161.82
The inter-fund 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, 2018 was as
follows:
Indoor
Sports
Sporting
Sewer Water Solid Waste Golf Course Complex Complexes Total
Fund Fund Fund Fund Fund
Fund Enterprise
Operating Revenues $ 7,311,100.07 $ 7,031,961.65 $4,362,025.00 $ 493,353.73 $ 435,627.14 $ 350,963.54 $ 19,985,031.13
Depreciation 4,277,107.12 1,825,123.66 347,711.05 130,782.90 321,737.08 300,906.82 7,203,368.63
Operating Income (Loss) (1,206,837.32) (238,877.81) 239,510.57 (198,872.47) (606,656.81) (981,849.61) (2,993,583.45)
Operating Transfers In 4,437,795.00 1,610,040.59 - 151,937.56 391,581.12 880,426.94 7,471,781.21
Net Income (Loss) 3,441,819.40 1,221,111.82 136,524.89 49,699.17 (179,345.32) 1,417,437.40 6,087,247.36
Current Capital Contributions 1,603,958.35 195,360.84 - 97,585.75 41,443.22 1,519,146.82 3,457,494.98
Property, Plant, and Equipment
Additions 5,526,481.50 3,605,822.20 43,733.34 97,585.75 38,744.41 1,912,274.62 11,224,641.82
Deletions 94,279.75 139,484.00 15,911.72 - - 11,770.00 261,445.47
Net Working Capital (2,336,766.70) 6,820,104.05 1,885,399.55 121,848.41 157,522.48 222,443.71 6,870,551.50
Total Assets 127,291,108.43 53,338,278.37 7,495,197.85 1,648,682.53 13,794,058.21 3,988,394.45 207,555,719.84
Current Liabilities 6,894,330.83 1,354,155.04 496,423.53 114,370.61 257,079.74 155,365.39 9,271,725.14
Long-Term Liabilities 61,816,869.40 9,872,833.19 3,542,057.35 103,423.20 21,933.34 63,729.57 75,420,846.05
Amounts payable to Other Funds - - 432,161.82 - - - 432,161.82
Total Liabilities 68,711,200.23 11,226,988.23 4,038,480.88 217,793.81 279,013.08 219,094.96 84,692,571.19
Total Net Position $ 58,412,005.25 $42 ,081,206.06 $3,356,287.59 $1,410,407.84 $13,447,860.04 $3,721,415.66 $ 122,429,182.44
72
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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.
Definitions 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 $2,100.00 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 $196,100.71 and long-term advance receivables of $432,161.82 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 $5,032,810.00 are
restricted by the City Charter to use during officially declared emergencies. Special revenue fund
balances totaling $18,169,155.94 are restricted by their enabling legislation. $49,034.35 in capital
project fund balances are restricted as the result of special revenue transfers and unspent bond proceeds.
The remaining $130,900.80 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.
73
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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.
General
Fund
Airport Fund
Parks and
Recreation
Fund
Casino Revenue
Fund
Transportation
Sales Tax Trust
Fund V
General
Capital
Improvements
Fund
Other Funds
Total
Fund balances
Nonspendable:
Prepaid expenses $ 88,281.96 $ 16,371.65 $ 20,030.13 $ - $ - $ - $ 71,416.97 $ 196,100.71
Long-term advance - - - 432,161.82 - - - 432,161.82
Mausoleum 2,100.00 - - - - - - 2,100.00
Restricted for:
Mausoleum 96,623.52 - - - - - - 96,623.52
Emergencies 3,650,000.00 258,000.00 414,500.00 - - - 710,310.00 5,032,810.00
Undistributed TIF revenue 34,277.28 - - - - - - 34,277.28
Convention and tourism - - - - - - 353,340.00 353,340.00
Community development - - - - - - 73,718.00 73,718.00
Public safety - - - - - - 586,075.86 586,075.86
Street projects - - - - 8,006,648.78 - 467,726.68 8,474,375.46
Water system projects - - - - - - 2,632,454.47 2,632,454.47
Sewer system projects - - - - - - 2,389,099.52 2,389,099.52
Parks and recreation - - - - - - 2,744,442.67 2,744,442.67
Other capital projects - - - - - - 964,684.31 964,684.31
Committed:
Other capital projects - - - 7,257,679.96 - - - 7,257,679.96
Assigned to:
Airport - 71,827.32 - - - - - 71,827.32
Parks and recreation - - 2,804.37 - - - 461,255.61 464,059.98
Operations and mtce - - 476,416.40 - - - - 476,416.40
Encumbrances 204,246.73 151,409.65 15,200.67 - - - - 370,857.05
Public safety - - - - - - 177,983.64 177,983.64
Other capital projects - - - - - 170,552.25 170,552.25
Unassigned: 3,214,828.54 - - - - - (26,856.08) 3,187,972.46
$ 7,290,358.03 $ 497,608.62 $ 928,951.57 $ 7,689,841.78 $ 8,006,648.78 $ 170,552.25 $11,605,651.65 $ 36,189,612.68
74
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE M - PROPRIETARY FUNDS RESTRICTED NET ASSETS AND RESTRICTED CASH
EQUIVALENTS AND INVESTMENT
At June 30, 2018, net position restricted for depreciation and replacement was $150,000 for the City’s
Water Fund, and net assets restricted for emergencies were $1,707,375.00, $936,008.00, $583,140.00,
$97,350.00, $112,650.00, and $157,252.00 for the City’s Sewer, Water, Solid Waste, Golf Course,
Indoor Sports Complex, and Sporting Complexes Fund, respectively.
At June 30, 2018, the City’s Sewer Fund had restricted cash equivalents in sinking reserve funds for
Revenue Bonds in the amount of $6,579,977.43.
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 post closure 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 post closure 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 post closure care costs is
$18,000 as of June 30, 2018, 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,
2018. However, the actual cost of closure and post closure care may be higher due to inflation, changes
in technology, or changes in landfill laws and regulations.
The City has used the option of a Contract of Obligation as the financial assurance instrument for the
landfill. The City issued bonds in October 1994 from which the proceeds were used to pay the closure
costs.
NOTE O - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; natural disasters; and employee health benefits. These risks, with the
exception of those discussed in the following paragraphs, are covered by commercial insurance. Settled
claims have not exceeded this commercial coverage in any of the past fifteen 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.
Effective January 1, 2018, the city became covered by Missouri Rural Services Corporation, which is
part of Star Insurance Company, for the liability coverages mentioned above.
75
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE O - RISK MANAGEMENT - Continued
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 StarNet. 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 self -insured plan administered by
Anthem Blue Cross Blue Shield of Missouri. Anthem had an “A” rating by A.M. Best. Under the plans,
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 per employee during each calendar year included in the
current fiscal year. The City also reimbursed the administrator for total claims paid up to the annual
aggregate stop loss amounts (125% of estimated claims) of approximately $4,200,000 and $4,200,000
for years ending December 31, 2017 and December 31, 2018, respectively. 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 80% of the aggregate stop loss amount during the current fiscal year.
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 Midwest Employers 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. Midwest
Employers 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:
76
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE O - RISK MANAGEMENT – Continued
CLAIMS LIABILITIES RECONCILIATION
Health Workers’
Insurance Compensation Total
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
Provisions for Incurred Claims 2,879,190 381,333 3,260,523
Payment of Claims (3,046,190) (395,333) (3,441,523)
Balance June 30, 2017 $ 139,500 $ 358,000 $ 497,500
Provisions for Incurred Claims 2,933,406 644,328 3,577,734
Payment of Claims (2,973,906) (376,828) (3,350,734)
Balance June 30, 2018 $ 99,000 $ 625,500 $ 724,500
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 citiz ens. 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, 2018, utility receivables totaled $2,681,639.28. On the financial statements, the utility
receivables are shown net of the allowance for doubtful accounts of $206,459.04. This results in net
utility receivable of $2,475,180.24. During the year ended June 30, 2018, the allowance was increased
by $149,055.38 or approximately 0.82% of the current year’s utility charges, and accounts totaling
$146,790.94 were written off.
77
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
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, 2018, the City had construction commitments outstanding of $2,683,496.61. The
construction commitments represent incomplete portions of contracts entered into to construct the
following: replacement of Fire Station #4 and Waste Water Treatment Plant; additions and renovations
to Fire Stations #1 and #2; new LaSalle Booster Pump and Transmission Main; the restoration of S.
Sprigg Street due to the appearance of sink holes; and various street, sidewalk, 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, 2018, the City had encumbrances outstanding of $7,661,677.33.
NOTE R – PRIOR PERIOD ADJUSTMENTS
The net position of the governmental and business activities has been decreased by $7,889,626.00 and
$788,267.50, respectively, as of June 30, 2018 from transactions that occurred in previous years. The
most significant adjustment related to establishing a different OPEB liability at the the beginning of
year as a resulting on implementing GASB 75. This adjustment resulted in decreases of $7,873,039.76
and $494,011.24 to the net position of the governmental and business activities, respectivel y. The only
other significant adjustment to the net position of governmental activities was a $17,113.83 decrease
resulting from costs treated as construction in progress instead of operating costs in the previous year in
error. Business-type activities were decreased by $253,666.62 for the overstatement of accrued sewer
utility revenue at the end of the previous year, $34,000.00 for prior year’s receivable payments
erroneously being shown as credits against water treatment chemical expense, and $21,298.87 for costs
previously treated as construction in progress instead of operating costs in the previous year in error.
Business-type activities were increased $12,574.22 as a result of adjusting for a solid waste utility
account being written off in error during the previous year and $2,135.01 of contributed construction in
process not being recognized at the end of the previous year.
78
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE S - TAX ABATEMENTS
The City has entered into real property tax abatement agreements with developers pursuant to
provisions of Chapter 353 of the Revised Statutes of Missouri. During the first 10 years of abatement,
100% of the incremental increase in real property taxes on the land and 100% of the real property taxes
on all improvements are abated. During the next 15 years, between 50% and 100% of the incremental
real property taxes on all land and all land improvements are abated.
During the current fiscal year $17,916.02 in real property taxes were abated related to provisions of
Chapter 353. Over 85% of the current year’s abatement related to two projects:
• $9,856.87 in abatements related to a project to redevelop an abandoned hotel building. These
abatements will expire in 2028.
• $5,736.97 in abatements related to a project to convert an abandoned retail building into an
office building for a national call center. These abatements will expire in 2032.
The City has established two Redevelopment Project Areas in the Cape Downtown Tax Increment
Financing District (TIF) according to Missouri TIF laws. During the current year $6,088.95 in real
property taxes were abated related to provisions of these laws. However, payments in lieu of taxes are
made to the City by owners of the abated properties based on the abated assessed values for all taxing
entities included in the TIF. These deposits are kept in a special allocation fund to be used to reimburse
developers for approved redevelopment projects within the TIF.
NOTE T - 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 cos t 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.
79
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE T - CONTINGENCY – Continued
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, 2018, no payment was due under the development
agreement.
2. 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 involved the conversion of the former Sears facility into a call center for National
Asset Recover Services (NARS) and other various improvements, such as facade
improvements, parking facilities, roof reconstruction, and HVAC enhancements. Total
reimbursements to GMB for redevelopment costs were limited to $3.6 million plus 7.5%
interest. These reimbursements will be made from incremental County and City sales tax
revenues, an additional CID sales tax, and real estate tax abatements. Reimbursements from
incremental County and City sales tax revenue will be limited to $1.2 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, 2018, no payment was due under the development
agreement.
80
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE T - CONTINGENCY – Continued
3. 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.
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 half 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 half 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 addit ional 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, 2018 the City incurred payments of $301,449.43 under the
development agreement. This amount is included in the Development Services expenses on the
statement of activities.
81
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2018
NOTE T - CONTINGENCY – Continued
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 taxes have expiration dates that could occur before the
total costs of the improvements are reimbursed to the developer. No provision is made to
replace revenues from the City sales taxes that expire if they are not extended. The development
agreement expires 15 years after the beginning of the Menards Home Improvement operations.
The City is obligated only to make quarterly payments as may lawfully be made from funds
budgeted and appropriated for that purpose by the City. During the fiscal year ended June 30,
2018, the City incurred $243,194.70 under the development agreement.
5. In November 2015, the City of Cape Girardeau entered into a development agreement with
Drury Southwest, Inc. (the “Company”). Under this agreement, the Company agreed to
construct a 168-room hotel and adjoining restaurant with an approximately 20,000 square foot
conference center. In recognition of the significant economic benefits to the City, once the
facility became operational, the City agreed to reimburse the Company for part of the cost of
constructing the conference center from available net sales tax revenues generated from the
operations of the hotel, restaurant, and conference center.
As of October 3, 2017, the Company had substantially completed the project, having incurred
$6,938,689 in costs under the development agreement. The City is required by the agreement to
reimburse the developer for these costs, up to a maximum of $6,250,000, from available
revenues. Available revenue is defined by the agreement as all the net sales tax revenue
generated by the 1% general sales tax and two .25% capital improvement sales taxes relating to
the operations of the hotel, restaurant, and conference center. All City sales taxes with the
exception of one of the capital improvement sales taxes have expiration dates that could occur
before the total costs of the improvements are reimbursed to the developer. No provision is
made to replace revenues from the City sales taxes that expire if they are not extended. The
development agreement expires 20 years from December 31, 2017, or as soon as the City has
completely reimbursed the Company for the total of reimbursable costs, if that happens first.
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,
2018, the City incurred $30,104.18 under the development agreement.
REQUIRED SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 17,721,245.00 $ 17,721,245.00 $ 17,866,334.64 $ 145,089.64
Licenses & permits 1,656,428.00 1,656,428.00 1,649,227.01 (7,200.99)
Intergovernmental 638,807.00 843,650.00 897,241.36 53,591.36
Charges for services 252,890.00 252,890.00 364,749.57 111,859.57
Internal charges 1,180,065.00 1,180,065.00 1,233,282.87 53,217.87
Fines and forfeits 725,000.00 725,000.00 600,446.25 (124,553.75)
Miscellaneous 338,148.00 338,148.00 338,537.30 389.30
Investment revenue 96,778.00 96,778.00 106,382.10 9,604.10
Total revenues 22,609,361.00 22,814,204.00 23,056,201.10 241,997.10
EXPENDITURES
Current:
Administrative Services 3,107,124.00 3,233,083.00 2,902,812.78 330,270.22
Development Services 2,368,065.00 2,562,065.00 2,470,560.11 91,504.89
Parks and Recreation 1,756,063.00 1,757,288.00 1,683,615.26 73,672.74
Public Safety 13,993,033.00 14,267,269.00 14,153,230.94 114,038.06
Public Works 2,704,315.00 2,710,031.00 2,558,990.12 151,040.88
Total current 23,928,600.00 24,529,736.00 23,769,209.21 760,526.79
Debt service:
Administrative charges 500.00 500.00 583.00 (83.00)
Principal 975,000.00 975,000.00 985,000.00 (10,000.00)
Interest 19,700.00 19,700.00 19,700.00 -
Total debt service 995,200.00 995,200.00 1,005,283.00 (10,083.00)
Capital outlay:
Development Services - - 5,202.45 (5,202.45)
Public Safety - 66,111.00 79,307.78 (13,196.78)
Public Works - - 3,637.35 (3,637.35)
Parks and Recreation - - 8,000.00 (8,000.00)
Total capital outlay - 66,111.00 96,147.58 (30,036.58)
Total expenditures 24,923,800.00 25,591,047.00 24,870,639.79 720,407.21
Excess (deficiency) of revenues over expenditures (2,314,439.00) (2,776,843.00) (1,814,438.69) 962,404.31
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 461.87 461.87
Contributed cap - other - - 200,000.00 200,000.00
Special assessments 18,000.00 18,000.00 17,485.68 (514.32)
Advance repayments 42,772.00 42,772.00 23,491.36 (19,280.64)
Asset disposition - - 354,605.99 354,605.99
Transfers in 6,525,620.00 6,603,120.00 6,478,345.97 (124,774.03)
Transfers out (4,252,584.00) (5,915,141.00) (5,728,300.26) 186,840.74
Total other financing source (uses) 2,333,808.00 748,751.00 1,346,090.61 597,339.61
Net change in fund balances 19,369.00 (2,028,092.00) (468,348.08) 1,559,743.92
Fund balances - beginning 7,618,199.89 7,618,199.89 7,618,199.89 -
Fund balances - ending $ 7,637,568.89 $ 5,590,107.89 $ 7,149,851.81 $ 1,559,743.92
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 167,000.00 $ 941,532.00 $ 881,818.98 $ (59,713.02)
Charges for services 440,650.00 440,650.00 457,673.51 17,023.51
Miscellaneous 294,698.00 294,698.00 306,910.68 12,212.68
Investment revenue 300.00 300.00 1,379.58 1,079.58
Total revenues 902,648.00 1,677,180.00 1,647,782.75 (29,397.25)
EXPENDITURES
Current:
Development Services 1,373,889.00 1,518,358.00 1,391,027.47 127,330.53
Total current 1,373,889.00 1,518,358.00 1,391,027.47 127,330.53
Debt service:
Interest - - 1,159.95 (1,159.95)
Total debt service - - 1,159.95 (1,159.95)
Capital outlay:
Capital Improvement Projects - 865,397.00 710,471.66 154,925.34
Development Services - 210,664.00 200,544.34 10,119.66
Total capital outlay - 1,076,061.00 911,016.00 165,045.00
Total expenditures 1,373,889.00 2,594,419.00 2,303,203.42 291,215.58
Excess (deficiency) of revenues over expenditures (471,241.00) (917,239.00) (655,420.67) 261,818.33
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 48,693.00 48,693.00
Asset disposition - - 41,190.25 41,190.25
Transfers in 471,241.00 837,041.00 733,927.64 (103,113.36)
Total other financing source (uses) 471,241.00 837,041.00 823,810.89 (13,230.11)
Net change in fund balances - (80,198.00) 168,390.22 248,588.22
Fund balances - beginning 178,409.18 178,409.18 178,409.18 -
Prior period adjustment (69.93) (69.93) (69.93) -
Fund balances - ending $ 178,339.25 $ 98,141.25 $ 346,729.47 $ 248,588.22
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 1,578,129.00 $ 1,578,129.00 $ 1,479,931.18 $ (98,197.82)
Miscellaneous 21,568.00 21,568.00 22,452.32 884.32
Investment revenue 6,750.00 6,750.00 9,036.21 2,286.21
Total revenues 1,606,447.00 1,606,447.00 1,511,419.71 (95,027.29)
EXPENDITURES
Current:
Parks and Recreation 2,682,330.00 3,900,255.06 2,700,708.15 1,199,546.91
Total current 2,682,330.00 3,900,255.06 2,700,708.15 1,199,546.91
Debt service:
Total debt service - - - -
Capital outlay:
Parks and Recreation 31,500.00 45,324.94 31,153.54 14,171.40
Total capital outlay 31,500.00 45,324.94 31,153.54 14,171.40
Total expenditures 2,713,830.00 3,945,580.00 2,731,861.69 1,213,718.31
Excess (deficiency) of revenues over expenditures (1,107,383.00) (2,339,133.00) (1,220,441.98) 1,118,691.02
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 14,331.56 14,331.56
Asset disposition - - 610.50 610.50
Transfers in 1,107,383.00 1,676,883.00 1,604,833.49 (72,049.51)
Total other financing source (uses) 1,107,383.00 1,676,883.00 1,619,775.55 (57,107.45)
Net change in fund balances - (662,250.00) 399,333.57 1,061,583.57
Fund balances - beginning 526,977.68 526,977.68 526,977.68 -
Fund balances - ending $ 526,977.68 $ (135,272.32) $ 926,311.25 $ 1,061,583.57
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 3,200,000.00 $ 3,200,000.00 $ 3,082,692.45 $ (117,307.55)
Intergovernmental 973,401.00 1,000,401.00 911,910.00 (88,491.00)
Investment revenue 54,043.00 54,043.00 123,893.83 69,850.83
Total revenues 4,227,444.00 4,254,444.00 4,118,496.28 (135,947.72)
EXPENDITURES
Current:
Administrative Services 96,000.00 137,000.00 134,076.56 2,923.44
Development Services - - 20,056.32 (20,056.32)
Parks and Recreation - - 2,551.00 (2,551.00)
Public Safety - 23,534.00 40,051.54 (16,517.54)
Total current 96,000.00 160,534.00 196,735.42 (36,201.42)
Debt service:
Principal 369,686.00 369,686.00 369,686.00 -
Interest 90,314.00 90,314.00 90,314.00 -
Total debt service 460,000.00 460,000.00 460,000.00 -
Capital outlay:
Capital Improvement Projects 1,140,267.00 133,168.00 51,849.71 81,318.29
Administrative Services - 140,000.00 73,568.40 66,431.60
Development Services 233,700.00 234,923.00 232,199.31 2,723.69
Public Safety 54,000.00 4,954,165.00 4,921,331.26 32,833.74
Public Works 400,000.00 548,777.00 544,570.00 4,207.00
Parks and Recreation - - (7,663.32) 7,663.32
Total capital outlay 1,827,967.00 6,011,033.00 5,815,855.36 195,177.64
Total expenditures 2,383,967.00 6,631,567.00 6,472,590.78 158,976.22
Excess (deficiency) of revenues over expenditures 1,843,477.00 (2,377,123.00) (2,354,094.50) 23,028.50
OTHER FINANCING SOURCES (USES)
Contributed cap - other 63,921.00 63,921.00 104,861.61 40,940.61
Advance repayments 19,281.00 19,281.00 19,280.51 (0.49)
Asset disposition - - (18,158.00) (18,158.00)
Transfers out (195,000.00) (895,000.00) (891,654.63) 3,345.37
Total other financing source (uses) (111,798.00) (811,798.00) (785,670.51) 26,127.49
Net change in fund balances 1,731,679.00 (3,188,921.00) (3,139,765.01) 49,155.99
Fund balances - beginning 6,657,918.22 6,657,918.22 6,657,918.22 -
Fund balances - ending $ 8,389,597.22 $ 3,468,997.22 $ 3,518,153.21 $ 49,155.99
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 5,174,000.00 $ 5,174,000.00 $ 5,096,520.24 $ (77,479.76)
Intergovernmental - - 3,061.48 3,061.48
Investment revenue 37,500.00 37,500.00 115,090.06 77,590.06
Total revenues 5,211,500.00 5,211,500.00 5,214,671.78 3,171.78
EXPENDITURES
Current:
Development Services 275,000.00 275,000.00 272,322.10 2,677.90
Public Works - 118,985.00 115,237.08 3,747.92
Total current 275,000.00 393,985.00 387,559.18 6,425.82
Capital outlay:
Capital Improvement Projects 8,315,000.00 8,196,015.00 3,579,243.55 4,616,771.45
Total capital outlay 8,315,000.00 8,196,015.00 3,579,243.55 4,616,771.45
Total expenditures 8,590,000.00 8,590,000.00 3,966,802.73 4,623,197.27
Excess (deficiency) of revenues over expenditures (3,378,500.00) (3,378,500.00) 1,247,869.05 4,626,369.05
OTHER FINANCING SOURCES (USES)
Transfers in 650,000.00 650,000.00 650,000.00 -
Total other financing source (uses) 650,000.00 650,000.00 650,000.00 -
Net change in fund balances (2,728,500.00) (2,728,500.00) 1,897,869.05 4,626,369.05
Fund balances - beginning 4,731,411.33 4,731,411.33 4,731,411.33 -
Fund balances - ending $ 2,002,911.33 $ 2,002,911.33 $ 6,629,280.38 $ 4,626,369.05
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax V
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 51,137.81 $ 51,137.81
Total revenues - - 51,137.81 51,137.81
EXPENDITURES
Current:
Public Safety - 150,000.00 136,357.49 13,642.51
Total current - 150,000.00 136,357.49 13,642.51
Capital outlay:
Capital Improvement Projects - 130,000.00 104,101.33 25,898.67
Public Safety - - (8,831.50) 8,831.50
Total capital outlay - 130,000.00 95,269.83 34,730.17
Total expenditures - 280,000.00 231,627.32 48,372.68
Excess (deficiency) of revenues over expenditures - (280,000.00) (180,489.51) 99,510.49
OTHER FINANCING SOURCES (USES)
Transfers in - 1,452,200.00 1,412,459.38 (39,740.62)
Total other financing source (uses) - 1,452,200.00 1,412,459.38 (39,740.62)
Net change in fund balances - 1,172,200.00 1,231,969.87 59,769.87
Fund balances - beginning (1,168,313.51) (1,168,313.51) (1,168,313.51) -
Fund balances - ending $ (1,168,313.51) $ 3,886.49 $ 63,656.36 $ 59,769.87
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
General Capital Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
88
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2018
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 Park Improvement Projects from Park/Storm Water Sales Tax Fund Phase 2 - which have
project length budgets - and the Cape Girardeau Municipal Development 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 19, 2017 and amended on
September 5, 2017; January 8, 2018; June 4, 2018; and July 02, 2018. The initial budget
and final amended budget are both reflected in the financial statements.
For the year ended June 30, 2018, the fund expenditures for Capital Improvements Sales Tax-Sewer
System and Worker’s Compensation exceeded their approved budgets by $2,356.77 and
$140,662.64, respectively.
89
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2018
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:
Casino Transportation General
Parks and Revenue Sales Tax Trust Capital Non-major
General Airport Recreation Fund Fund V Improvements Funds
GAAP Basis $(515,496.08) $ 138,141.93 $399,582.57 $ 539,286.06 $ 1,634,375.14 $ (7,004,070.06) $(9,735,384.52)
Increase due to:
Prior year-end encumbrances
Administrative services 644.23 - - 23,500.00 - - -
Development services 113,252.24 1,134,060.37 - - - - -
Parks and recreation 1,677.01 - 2,960.13 16,413.84 - - -
Public safety 53,031.36 - - 5,976.95 - - 2,329.95
Public works 13,350.01 - - - - - -
Capital outlay - - - - 1,664,155.50 8,350,093.46 4,511,963.92
Advance repayments
from other funds
23,491.36
-
-
19,280.51
-
-
-
Adjust investments to market 60,605.10 251.62 11,991.54 72,644.96 81,412.67 - 90,072.30
Funds not budgeted annually - - - - - - 135,700.22
Encumbrance revenue - - - 27,000.00 - - -
266,051.31 1,134,311.99 14,951.67 164,816.26 1,745,568.17 8,350,093.46 4,740,066.39
Decrease due to:
Current year-end encumbrances
Administrative services 126,322.89 - - - - - -
Development services 43,371.06 401,737.60 - 1,017.50 - - -
Parks and recreation 1,104.96 - 15,200.67 - - - -
Public safety 3,441.46 - - 3,262,282.83 - - 4,624.80
Public works 30,006.36 - - 580,567.00 - - -
Capital outlay - - - - 1,463,396.06 110,439.32 383,816.27
Adjust investments to market - - - - - 3,614.21 3,500.53
Funds not budgeted annually - - - - - - 165,470.08
Encumbrance revenue 14,656.58 702,326.10 - - 18,678.20 - 16,456.98
218,903.31 1,104,063.70 15,200.67 3,843,867.33 1,482,074.26 114,053.53 573,868.66
Budget Basis $(468,348.08) $ 168,390.22 $393,333.57 $(3,139,765.01) $ 1,897,869.05 $ 1,231,969.87 $(5,569,186.79)
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.
90
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2018
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Solid Golf Indoor Sports Sporting
Sewer Water Waste Course Complex Complexes
GAAP Basis $ 3,441,819.40 $ 1,221,111.82 $ 136,524.89 $ 49,699.17 $ (179,345.32) $ 1,417,437.40
Increase due to :
Prior year encumbrances
Operating expenses 13,671.36 42,448.24 - - 782.90 3,783.67
Depreciation 4,277,107.12 1,825,123.66 347,711.05 130,782.90 321,737.08 300,906.82
Special assessments 8,960.00 - - - - -
Deferred revenues - - 569,131.05 - - -
Amortized Bond premium/discount - - 3,069.66 - - -
Amount deferred for future debt service
for capital appreciation bonds:
Interest subsidy received 29,515.50 - - - - -
Net OPEB obligation 24,209.74 4,652.41 -
16,705.98 10,338.68 3,446.23 10,338.68
djust investments to market 34,972.86 64,937.50 20,142.99 2,330.37 4,133.25 3,665.81
Asset dispositions 20,117.50 15,135.45 3,394.49 - - -
Net pension cost 28,084.51 4,704.94 16,688.59 3,609.75 4,206.92 7,191.38
Bad debt allowance 58,742.70 53,557.60 36,755.08 - - -
4,495,381.29 2,010,559.80 1,013,598.89 147,061.70 334,306.38 325,886.36
Decrease due to:
Year-end encumbrances
Operating expenses 79,803.82 66,830.13 111.47 - 3,325.00 18,289.79
Capital outlays 657,308.14 366,418.06 - - 18,609.00 6,235.00
Landfill closure and maintenance costs - - 2,927.41 - - -
Interest paid more than accrual 64,941.01 - - - - -
Bond principal paid 4,535,000.00 585,000.00 359,280.51 - - 23,491.36
Amortized Bond premium/discount - 3,694.49 - - - -
Capital outlays 156,119.82 1,453,878.67 35,752.81 - 15,478.00 8,000.00
Deferred revenues 187,817.78 176,217.89 33,286.18 - - -
Adjustment to liability for future landfill - -
post closure maintenance costs - - 72.59 - - -
Net OPEB Obligation 10,852.85 - 2,334.42 - - -
Contributed capital 1,446,149.35 195,360.84 - 97,585.75 10,643.22 1,519,146.82
7,137,992.77 2,847,400.08 433,765.39 97,585.75 48,055.22 1,575,162.97
Budget Basis $ 799,207.92 $ 384,271.54 $ 716,358.39 $ 99,175.12 $ 106,905.84 $ 168,160.79
91
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2018
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Fleet Employee Risk Equipment
IT Management Fringe Management Replacement
GAAP Basis $ (44,481.29) $ (41,000.28) $504,708.74 $(145,297.55) $ 127,837.18
Increase due to:
Prior year encumbrances
Operating expenses 660.47 5,284.25 - - -
Capital outlays - - - - -
Depreciation 122,144.71 22,341.11 - - 254,831.43
Deferred revenues - 18,215.20 - - -
Adjust investments to market 766.86 2,256.37 34,634.65 13,811.56 16,031.25
Net pension cost
Net OPEB Obligation
4,984.79
7,409.39
11,744.49
26,535.95
-
-
-
-
-
-
135,966.22 86,377.37 34,634.65 13,811.56 270,862.68
Decrease due to:
Year-end encumbrances
Operating expenses 14,719.14 2,699.00 - - -
Capital outlays 132,509.75 - - - 201,109.90
147,228.89 2,699.00 - - 201,109.90
Budget Basis $ (55,743.96) $ 42,678.09 $539,343.39 $(131,485.99) $ 197,589.96
2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 847,662$ 813,616$ 795,771$ 768,458$
Interest on the Pension Liability 2,668,902 2,567,279 2,346,499 2,240,283
Changes of Benefit Terms - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability (568,794) (678,078) (183,850) (261,952)
Changes of Assumptions - - 1,388,735 -
Benefit Payments, Including Refunds of Employee Contributions (1,340,034) (1,296,403) (1,324,473) (1,266,841)
Net Change in Total Pension Liability 1,607,736 1,406,414 3,022,682 1,479,948
Total Pension Liability - Beginning 37,054,325 35,647,911 32,625,229 31,145,281
Total Pension Liability - Ending (A)38,662,061$ 37,054,325$ 35,647,911$ 32,625,229$
Plan Fiduciary Net Position
Contributions - Employer 847,162$ 745,001$ 820,228$ 1,953,089$
Contributions - Employees - 16,008 - -
Net Investment Income 4,823,411 4,214,232 (82,162) 684,825
Benefit Payments, Including Refunds of Employee Contributions (1,340,034) (1,296,403) (1,324,473) (1,266,841)
Pension Plan Administrative Expense (40,041) (38,351) (37,018) (40,731)
Other (Net Transfers)(225,107) (15,167) (298,285) 267,961
Net Change in Plan Fiduciary Net Position 4,065,391 3,625,320 (921,710) 1,598,303
Plan Fiduciary Net Position - Beginning 39,568,620 35,943,300 36,865,010 35,266,707
Plan Fiduciary Net Position - Ending (B)43,634,011$ 39,568,620$ 35,943,300$ 36,865,010$
Net Pension Liability - Ending (A) - (B)(4,971,950) (2,514,295) (295,389) (4,239,781)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 112.86%106.79%100.83%113.00%
Covered Valuation Payroll 9,841,879$ 9,707,798$ 9,109,297$ 8,987,241$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -50.52%-25.90%-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, 2018
GENERAL DIVISION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
See Accompanying Notes to the Basic Financial Statements.
92
2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 367,842$ 345,371$ 309,133$ 303,651$
Interest on the Pension Liability 1,377,421 1,327,202 1,248,307 1,182,926
Changes of Benefit Terms - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability (5,046) 21,040 (83,909) 274,477
Changes of Assumptions - - 481,968 -
Benefit Payments, Including Refunds of Employee Contributions (1,081,050) (945,268) (827,008) (895,666)
Net Change in Total Pension Liability 659,167 748,345 1,128,491 865,388
Total Pension Liability - Beginning 19,349,277 18,600,932 17,472,441 16,607,053
Total Pension Liability - Ending (A)20,008,444$ 19,349,277$ 18,600,932$ 17,472,441$
Plan Fiduciary Net Position
Contributions - Employer 392,375$ 366,721$ 337,743$ 1,043,262$
Contributions - Employees - - - -
Net Investment Income 2,382,243 2,267,369 (46,280) 349,748
Benefit Payments, Including Refunds of Employee Contributions (1,081,050) (945,268) (827,008) (895,666)
Pension Plan Administrative Expense (13,830) (13,148) (12,366) (12,862)
Other (Net Transfers)(42,272) 156,567 50,565 (106,927)
Net Change in Plan Fiduciary Net Position 1,637,466 1,832,241 (497,346) 377,555
Plan Fiduciary Net Position - Beginning 20,308,624 18,476,383 18,973,729 18,596,174
Plan Fiduciary Net Position - Ending (B)21,946,090$ 20,308,624$ 18,476,383$ 18,973,729$
Net Pension Liability - Ending (A) - (B)(1,937,646) (959,347) 124,549 (1,501,288)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 109.68%104.96%99.33%108.59%
Covered Valuation Payroll 3,943,991$ 3,818,933$ 3,536,454$ 3,223,790$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -49.13%-25.12%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, 2018
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.
93
2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 401,292$ 388,806$ 375,784$ 370,414$
Interest on the Pension Liability 1,472,645 1,452,993 1,336,826 1,319,931
Changes of Benefit Terms - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability (152,061) (515,001) 461,181 (356,529)
Changes of Assumptions - - 508,788 -
Benefit Payments, Including Refunds of Employee Contributions (1,102,750) (1,022,379) (1,148,773) (1,059,610)
Net Change in Total Pension Liability 619,126 304,419 1,533,806 274,206
Total Pension Liability - Beginning 20,656,941 20,352,522 18,818,716 18,544,510
Total Pension Liability - Ending (A)21,276,067$ 20,656,941$ 20,352,522$ 18,818,716$
Plan Fiduciary Net Position
Contributions - Employer 370,929$ 326,044$ 375,209$ 765,345$
Contributions - Employees - - - -
Net Investment Income 2,629,862 2,374,115 (40,593) 415,318
Benefit Payments, Including Refunds of Employee Contributions (1,102,750) (1,022,379) (1,148,773) (1,059,610)
Pension Plan Administrative Expense (10,585) (10,113) (9,925) (10,625)
Other (Net Transfers)(28,894) 100,165 18,256 (25,522)
Net Change in Plan Fiduciary Net Position 1,858,562 1,767,832 (805,826) 84,906
Plan Fiduciary Net Position - Beginning 22,379,179 20,611,347 21,417,173 21,332,267
Plan Fiduciary Net Position - Ending (B)24,237,741$ 22,379,179$ 20,611,347$ 21,417,173$
Net Pension Liability - Ending (A) - (B)(2,961,674) (1,722,238) (258,825) (2,598,457)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 113.92%108.34%101.27%113.81%
Covered Valuation Payroll 3,290,770$ 3,283,135$ 3,099,147$ 3,017,659$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -90.00%-52.46%-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, 2018
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.
94
June 30, 2018
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
2018 1,644,496$ 1,610,466$ 34,030$ 16,990,644$ 9.48%
2017 1,437,766 1,437,766 - 16,749,343 8.58%
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%
Notes to Schedule:
Valuation Date:February 28, 2018
Notes The roll-forward of total pension liability from February 28, 2018 to
June 30, 2018 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:A level percentage of payroll amortization method is used to
amortize the UAAL over a closed period of years. If the UAAL
(excluding the UAAL associated with benefit changes) is negative,
then this amount is amortized of the greater of (i) the remaining
initial amortization period or (ii) 15 years.
Remaining Amortization Period: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 6.55%, 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:None
CITY OF CAPE GIRARDEAU, MISSOURI
SUPPLEMENTARY INFORMATION
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
SCHEDULE OF EMPLOYER CONTRIBUTIONS
See Accompanying Notes to the Basic Financial Statements.
95
2018
Calendar Year Ended June 30,
Total OPEB Liability
Service Costs 303,952$
Interest on Total OPEB Liability 407,566
Effect of Economic/Demographic Gains or Losses (519,247)
Effect of Assumptions Changes or Inputs 158,158
Benefit Payments (608,774)
Net Change in Total OPEB Liability (258,345)
Total OPEB Liability - Beginning 11,382,294
Total OPEB Liability - Ending 11,123,949$
Covered Employee Payroll 9,074,209
Total OPEB Liability as a Percentage
of Covered Employee Payroll 122.59%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of
prior years are not required, and if prior years are not reported in accordance with the current GASB standards,
they should not be reported.
CITY OF CAPE GIRARDEAU, MISSOURI
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
June 30, 2018
REQUIRED SUPPLEMENTARY INFORMATION
See Accompanying Notes to the Financial Statements.
96
SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 4,008,750.00 $ 4,008,750.00 $ 3,941,141.67 $ (67,608.33)
Investment revenue 15,000.00 15,000.00 46,882.04 31,882.04
Total revenues 4,023,750.00 4,023,750.00 3,988,023.71 (35,726.29)
EXPENDITURES
Debt service:
Administrative charges - - 141.19 (141.19)
Principal 2,330,000.00 2,330,000.00 2,330,000.00 -
Interest 77,500.00 77,500.00 77,500.00 -
Total debt service 2,407,500.00 2,407,500.00 2,407,641.19 (141.19)
Capital outlay:
Parks and Recreation 488,100.00 488,100.00 358,960.37 129,139.63
Total capital outlay 488,100.00 488,100.00 358,960.37 129,139.63
Total expenditures 2,895,600.00 2,895,600.00 2,766,601.56 128,998.44
Excess (deficiency) of revenues over expenditures 1,128,150.00 1,128,150.00 1,221,422.15 93,272.15
OTHER FINANCING SOURCES (USES)
Asset disposition - - 6,191.88 6,191.88
Transfers in - - 30,000.00 30,000.00
Transfers out (1,311,900.00) (3,011,900.00) (2,556,619.38) 455,280.62
Total other financing source (uses) (1,311,900.00) (3,011,900.00) (2,520,427.50) 491,472.50
Net change in fund balances (183,750.00) (1,883,750.00) (1,299,005.35) 584,744.65
Fund balances - beginning 3,336,092.40 3,336,092.40 3,336,092.40 -
Fund balances - ending $ 3,152,342.40 $ 1,452,342.40 $ 2,037,087.05 $ 584,744.65
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Parks/Stormwater Sales Tax-Capital
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 87,397.13 $ 87,397.13
Total revenues - - 87,397.13 87,397.13
EXPENDITURES
Debt service:
Administrative charges 4,800.00 4,800.00 - 4,800.00
Principal 47,900.00 47,900.00 47,900.00 -
Interest 10,459.00 10,459.00 10,473.92 (14.92)
Total debt service 63,159.00 63,159.00 58,373.92 4,785.08
Total expenditures 63,159.00 63,159.00 58,373.92 4,785.08
Excess (deficiency) of revenues over expenditures (63,159.00) (63,159.00) 29,023.21 92,182.21
OTHER FINANCING SOURCES (USES)
Transfers out (3,315,300.00) (3,315,300.00) (2,959,076.04) 356,223.96
Total other financing source (uses) (3,315,300.00) (3,315,300.00) (2,959,076.04) 356,223.96
Net change in fund balances (3,378,459.00) (3,378,459.00) (2,930,052.83) 448,406.17
Fund balances - beginning 5,599,767.90 5,599,767.90 5,599,767.90 -
Fund balances - ending $ 2,221,308.90 $ 2,221,308.90 $ 2,669,715.07 $ 448,406.17
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Capital Improvement Sales Tax-Water System
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,282,224.00 $ 2,282,224.00 $ 2,329,587.86 $ 47,363.86
Investment revenue 3,750.00 3,750.00 9,453.68 5,703.68
Total revenues 2,285,974.00 2,285,974.00 2,339,041.54 53,067.54
EXPENDITURES
Current:
Development Services 724,400.00 724,400.00 787,728.15 (63,328.15)
Total current 724,400.00 724,400.00 787,728.15 (63,328.15)
Debt service:
Administrative charges - - 268.66 (268.66)
Principal 265,000.00 265,000.00 265,000.00 -
Interest 272,992.00 272,992.00 272,989.99 2.01
Total debt service 537,992.00 537,992.00 538,258.65 (266.65)
Total expenditures 1,262,392.00 1,262,392.00 1,325,986.80 (63,594.80)
Excess (deficiency) of revenues over expenditures 1,023,582.00 1,023,582.00 1,013,054.74 (10,527.26)
OTHER FINANCING SOURCES (USES)
Transfers out (704,869.00) (817,519.00) (724,914.12) 92,604.88
Total other financing source (uses) (704,869.00) (817,519.00) (724,914.12) 92,604.88
Net change in fund balances 318,713.00 206,063.00 288,140.62 82,077.62
Fund balances - beginning 333,724.05 333,724.05 333,724.05 -
Fund balances - ending $ 652,437.05 $ 539,787.05 $ 621,864.67 $ 82,077.62
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 28,190.00 $ 28,190.00 $ 39,203.62 $ 11,013.62
Investment revenue - - 2,159.75 2,159.75
Total revenues 28,190.00 28,190.00 41,363.37 13,173.37
EXPENDITURES
Current:
Development Services 128,190.00 128,190.00 15,359.23 112,830.77
Total current 128,190.00 128,190.00 15,359.23 112,830.77
Total expenditures 128,190.00 128,190.00 15,359.23 112,830.77
Excess (deficiency) of revenues over expenditures (100,000.00) (100,000.00) 26,004.14 126,004.14
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 3,600.00 3,600.00
Transfers out - - (88,673.00) (88,673.00)
Total other financing source (uses) - - (85,073.00) (85,073.00)
Net change in fund balances (100,000.00) (100,000.00) (59,068.86) 40,931.14
Fund balances - beginning 133,224.12 133,224.12 133,224.12 -
Fund balances - ending $ 33,224.12 $ 33,224.12 $ 74,155.26 $ 40,931.14
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 361,370.00 $ 361,370.00 $ 363,034.77 $ 1,664.77
Licenses & permits 5,000.00 5,000.00 4,277.00 (723.00)
Intergovernmental 9,600.00 9,600.00 9,866.09 266.09
Investment revenue 3,000.00 3,000.00 6,251.48 3,251.48
Total revenues 378,970.00 378,970.00 383,429.34 4,459.34
EXPENDITURES
Current:
Public Safety 578,970.00 578,970.00 393,531.20 185,438.80
Total current 578,970.00 578,970.00 393,531.20 185,438.80
Total expenditures 578,970.00 578,970.00 393,531.20 185,438.80
Excess (deficiency) of revenues over expenditures (200,000.00) (200,000.00) (10,101.86) 189,898.14
Net change in fund balances (200,000.00) (200,000.00) (10,101.86) 189,898.14
Fund balances - beginning 405,976.64 405,976.64 405,976.64 -
Fund balances - ending $ 205,976.64 $ 205,976.64 $ 395,874.78 $ 189,898.14
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 1,500,000.00 $ 1,500,000.00 $ 1,538,419.30 $ 38,419.30
Investment revenue 6,750.00 6,750.00 12,136.73 5,386.73
Total revenues 1,506,750.00 1,506,750.00 1,550,556.03 43,806.03
EXPENDITURES
Debt service:
Principal 344,049.00 3,532,137.00 3,532,137.36 (0.36)
Interest 115,148.00 136,608.00 136,607.21 0.79
Total debt service 459,197.00 3,668,745.00 3,668,744.57 0.43
Capital outlay:
Capital Improvement Projects - 288,000.00 285,243.71 2,756.29
Total capital outlay - 288,000.00 285,243.71 2,756.29
Total expenditures 459,197.00 3,956,745.00 3,953,988.28 2,756.72
Excess (deficiency) of revenues over expenditures 1,047,553.00 (2,449,995.00) (2,403,432.25) 46,562.75
OTHER FINANCING SOURCES (USES)
Special assessments - - 4,462.17 4,462.17
Transfers in 289,032.00 3,296,532.00 3,292,784.49 (3,747.51)
Transfers out (1,345,000.00) (1,345,000.00) (1,285,000.00) 60,000.00
Total other financing source (uses) (1,055,968.00) 1,951,532.00 2,012,246.66 60,714.66
Net change in fund balances (8,415.00) (498,463.00) (391,185.59) 107,277.41
Fund balances - beginning 862,479.63 862,479.63 862,479.63 -
Fund balances - ending $ 854,064.63 $ 364,016.63 $ 471,294.04 $ 107,277.41
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 28.35 $ 28.35
Total revenues - - 28.35 28.35
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 28.35 28.35
OTHER FINANCING SOURCES (USES)
Special assessments - - 1.65 1.65
Transfers out - (1,000.00) (30.00) 970.00
Total other financing source (uses) - (1,000.00) (28.35) 971.65
SPECIAL ITEMS
Total special items - - - -
Net change in fund balances - (1,000.00) - 1,000.00
Fund balances - beginning - - - -
Fund balances - ending $ - $ (1,000.00) $ - $ 1,000.00
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax Trust Fund I
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 5,345,000.00 $ 5,345,000.00 $ 5,252,562.46 $ (92,437.54)
Investment revenue 10,500.00 10,500.00 22,952.72 12,452.72
Total revenues 5,355,500.00 5,355,500.00 5,275,515.18 (79,984.82)
EXPENDITURES
Current:
Development Services 265,000.00 280,000.00 282,356.77 (2,356.77)
Total current 265,000.00 280,000.00 282,356.77 (2,356.77)
Total expenditures 265,000.00 280,000.00 282,356.77 (2,356.77)
Excess (deficiency) of revenues over expenditures 5,090,500.00 5,075,500.00 4,993,158.41 (82,341.59)
OTHER FINANCING SOURCES (USES)
Transfers out (3,750,000.00) (3,750,000.00) (3,750,000.00) -
Total other financing source (uses) (3,750,000.00) (3,750,000.00) (3,750,000.00) -
Net change in fund balances 1,340,500.00 1,325,500.00 1,243,158.41 (82,341.59)
Fund balances - beginning 484,916.44 484,916.44 484,916.44 -
Fund balances - ending $ 1,825,416.44 $ 1,810,416.44 $ 1,728,074.85 $ (82,341.59)
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Capital Improvement Sales Tax-Sewer System Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 13,082.15 $ 13,082.15
Total revenues - - 13,082.15 13,082.15
EXPENDITURES
Debt service:
Administrative charges 750.00 750.00 440.71 309.29
Principal 875,000.00 875,000.00 875,000.00 -
Interest 405,352.00 405,352.00 405,348.75 3.25
Total debt service 1,281,102.00 1,281,102.00 1,280,789.46 312.54
Capital outlay:
Public Safety 166,752.00 166,752.00 166,194.38 557.62
Total capital outlay 166,752.00 166,752.00 166,194.38 557.62
Total expenditures 1,447,854.00 1,447,854.00 1,446,983.84 870.16
Excess (deficiency) of revenues over expenditures (1,447,854.00) (1,447,854.00) (1,433,901.69) 13,952.31
OTHER FINANCING SOURCES (USES)
Transfers in 2,932,333.00 3,024,057.00 2,966,340.54 (57,716.46)
Transfers out (1,293,500.00) (1,870,200.00) (1,810,220.04) 59,979.96
Total other financing source (uses) 1,638,833.00 1,153,857.00 1,156,120.50 2,263.50
Net change in fund balances 190,979.00 (293,997.00) (277,781.19) 16,215.81
Fund balances - beginning 611,221.61 611,221.61 611,221.61 -
Fund balances - ending $ 802,200.61 $ 317,224.61 $ 333,440.42 $ 16,215.81
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,587,000.00 $ 2,587,000.00 $ 2,548,255.36 $ (38,744.64)
Investment revenue - - 683.74 683.74
Total revenues 2,587,000.00 2,587,000.00 2,548,939.10 (38,060.90)
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 2,587,000.00 2,587,000.00 2,548,939.10 (38,060.90)
OTHER FINANCING SOURCES (USES)
Transfers out (2,587,000.00) (2,587,000.00) (2,541,283.54) 45,716.46
Total other financing source (uses) (2,587,000.00) (2,587,000.00) (2,541,283.54) 45,716.46
Net change in fund balances - - 7,655.56 7,655.56
Fund balances - beginning 258,338.79 258,338.79 258,338.79 -
Fund balances - ending $ 258,338.79 $ 258,338.79 $ 265,994.35 $ 7,655.56
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 707.47 $ 707.47
Total revenues - - 707.47 707.47
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 707.47 707.47
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 18,019.00 18,019.00
Asset disposition 12,000.00 12,000.00 5,350.00 (6,650.00)
Transfers in - - 1,200.00 1,200.00
Transfers out (12,000.00) (36,569.00) (24,569.00) 12,000.00
Total other financing source (uses) - (24,569.00) - 24,569.00
Net change in fund balances - (24,569.00) 707.47 25,276.47
Fund balances - beginning 40,325.98 40,325.98 40,325.98 -
Prior period adjustment - - 1,200.00 1,200.00
Fund balances - ending $ 40,325.98 $ 15,756.98 $ 42,233.45 $ 26,476.47
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 1,438,486.17 $ 1,438,486.17
Investment revenue - - 7,013.57 7,013.57
Total revenues - - 1,445,499.74 1,445,499.74
EXPENDITURES
Debt service:
Interest - - 0.15 (0.15)
Total debt service - - 0.15 (0.15)
Capital outlay:
Capital Improvement Projects - - - -
Total capital outlay - - - -
Total expenditures - - 0.15 (0.15)
Excess (deficiency) of revenues over expenditures - - 1,445,499.59 1,445,499.59
OTHER FINANCING SOURCES (USES)
Transfers out - (3,006,500.00) (3,006,238.64) 261.36
Total other financing source (uses) - (3,006,500.00) (3,006,238.64) 261.36
Net change in fund balances - (3,006,500.00) (1,560,739.05) 1,445,760.95
Fund balances - beginning 1,367,176.37 1,367,176.37 1,367,176.37 -
Prior period adjustment - - 193,526.87 193,526.87
Fund balances - ending $ 1,367,176.37 $ (1,639,323.63) $ (35.81) $ 1,639,287.82
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Street Capital Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 314.14 $ 314.14
Total revenues - - 314.14 314.14
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 314.14 314.14
OTHER FINANCING SOURCES (USES)
Transfers out - (27,500.00) (27,145.39) 354.61
Total other financing source (uses) - (27,500.00) (27,145.39) 354.61
Net change in fund balances - (27,500.00) (26,831.25) 668.75
Fund balances - beginning 26,831.25 26,831.25 26,831.25 -
Fund balances - ending $ 26,831.25 $ (668.75) $ - $ 668.75
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Park Capital Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 668.07 $ 668.07
Total revenues - - 668.07 668.07
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 668.07 668.07
OTHER FINANCING SOURCES (USES)
Transfers out - (50,000.00) (50,000.00) -
Total other financing source (uses) - (50,000.00) (50,000.00) -
Net change in fund balances - (50,000.00) (49,331.93) 668.07
Fund balances - beginning 54,397.41 54,397.41 54,397.41 -
Fund balances - ending $ 54,397.41 $ 4,397.41 $ 5,065.48 $ 668.07
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Community Development Block Grant Project
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 7,882.38 $ 7,882.38
Total revenues - - 7,882.38 7,882.38
EXPENDITURES
Capital outlay:
Capital Improvement Projects - 185,000.00 178,703.50 6,296.50
Total capital outlay - 185,000.00 178,703.50 6,296.50
Total expenditures - 185,000.00 178,703.50 6,296.50
Excess (deficiency) of revenues over expenditures - (185,000.00) (170,821.12) 14,178.88
Net change in fund balances - (185,000.00) (170,821.12) 14,178.88
Fund balances - beginning 151,254.83 151,254.83 151,254.83 -
Fund balances - ending $ 151,254.83 $ (33,745.17) $ (19,566.29) $ 14,178.88
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax Trust Fund III
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 1,336,250.00 $ 1,336,250.00 $ 1,313,713.92 $ (22,536.08)
Investment revenue 3,000.00 3,000.00 14,406.90 11,406.90
Total revenues 1,339,250.00 1,339,250.00 1,328,120.82 (11,129.18)
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 1,339,250.00 1,339,250.00 1,328,120.82 (11,129.18)
OTHER FINANCING SOURCES (USES)
Transfers out (1,278,092.00) (1,288,092.00) (1,234,809.59) 53,282.41
Total other financing source (uses) (1,278,092.00) (1,288,092.00) (1,234,809.59) 53,282.41
Net change in fund balances 61,158.00 51,158.00 93,311.23 42,153.23
Fund balances - beginning 314,622.15 314,622.15 314,622.15 -
Fund balances - ending $ 375,780.15 $ 365,780.15 $ 407,933.38 $ 42,153.23
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Park/Stormwater Sales Tax
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 5.50 $ 5.50
Total revenues - - 5.50 5.50
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 5.50 5.50
Net change in fund balances - - 5.50 5.50
Fund balances - beginning 344.89 344.89 344.89 -
Fund balances - ending $ 344.89 $ 344.89 $ 350.39 $ 5.50
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 289,032.00 $ 289,032.00 $ 287,502.64 $ (1,529.36)
Investment revenue - - 23.13 23.13
Total revenues 289,032.00 289,032.00 287,525.77 (1,506.23)
EXPENDITURES
Debt service:
Interest - - 0.15 (0.15)
Total debt service - - 0.15 (0.15)
Capital outlay:
Capital Improvement Projects - - 1,045.58 (1,045.58)
Total capital outlay - - 1,045.58 (1,045.58)
Total expenditures - - 1,045.73 (1,045.73)
Excess (deficiency) of revenues over expenditures 289,032.00 289,032.00 286,480.04 (2,551.96)
OTHER FINANCING SOURCES (USES)
Transfers out (289,032.00) (289,032.00) (286,515.85) 2,516.15
Total other financing source (uses) (289,032.00) (289,032.00) (286,515.85) 2,516.15
Net change in fund balances - - (35.81) (35.81)
Fund balances - beginning - - - -
Fund balances - ending $ - $ - $ (35.81) $ (35.81)
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 311.64 $ 311.64
Residential charges 4,605,300.00 4,605,300.00 4,643,537.80 38,237.80
Commerical charges 2,478,980.00 2,478,980.00 2,332,374.99 (146,605.01)
Other fees and charges 125,460.00 125,460.00 135,976.75 10,516.75
Internal charges - - 9,288.71 9,288.71
Miscellaneous 2,000.00 2,000.00 2,104.04 104.04
Investment revenue 92,300.00 92,300.00 141,885.55 49,585.55
Total revenues 7,304,040.00 7,304,040.00 7,265,479.48 (38,560.52)
EXPENDITURES
Current:
Contractual services 981,604.00 1,158,079.43 988,395.11 169,684.32
General operating expenses 420,377.00 420,381.09 406,087.43 14,293.66
Internal service expense 196,483.00 196,483.00 166,530.18 29,952.82
Material and supplies 1,025,720.00 988,754.62 850,319.32 138,435.30
Personnel services 1,840,535.00 1,840,535.00 1,742,460.53 98,074.47
Special projects expense 20,552.00 23,847.86 61,157.51 (37,309.65)
Total current 4,485,271.00 4,628,081.00 4,214,950.08 413,130.92
Debt service:
Administrative charges 693,201.00 658,201.00 541,505.29 116,695.71
Principal 4,535,000.00 4,535,000.00 4,535,000.00 -
Interest 1,007,489.00 1,007,489.00 1,010,093.99 (2,604.99)
Total debt service 6,235,690.00 6,200,690.00 6,086,599.28 114,090.72
Capital outlay:
Capital Improvement Projects 475,000.00 808,520.00 631,817.14 176,702.86
Equipment 134,723.00 133,893.00 181,610.82 (47,717.82)
Total capital outlay 609,723.00 942,413.00 813,427.96 128,985.04
Total expenditures 11,330,684.00 11,771,184.00 11,114,977.32 656,206.68
Excess (deficiency) of revenues over expenditures (4,026,644.00) (4,467,144.00) (3,849,497.84) 617,646.16
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 29,412.62 29,412.62
Contributed cap - connect fee 100,000.00 100,000.00 157,809.00 57,809.00
Special assessments - - 8,960.00 8,960.00
Asset disposition - - 14,831.04 14,831.04
Transfers in 4,443,161.00 4,443,161.00 4,437,795.00 (5,366.00)
Transfers out - - (101.90) (101.90)
Total other financing source (uses) 4,543,161.00 4,543,161.00 4,648,705.76 105,544.76
Net change in fund balances 516,517.00 76,017.00 799,207.92 723,190.92
Fund balances - beginning 7,789,245.63 7,789,245.63 7,789,245.63 -
Fund balances - ending $ 8,305,762.63 $ 7,865,262.63 $ 8,588,453.55 $ 723,190.92
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Residential charges $ 3,878,000.00 $ 3,878,000.00 $ 3,976,589.64 $ 98,589.64
Commerical charges 2,592,800.00 2,592,800.00 2,557,981.18 (34,818.82)
Other fees and charges 240,220.00 240,220.00 297,448.79 57,228.79
Miscellaneous 26,217.00 26,217.00 23,724.15 (2,492.85)
Investment revenue 67,500.00 67,500.00 87,732.48 20,232.48
Total revenues 6,804,737.00 6,804,737.00 6,943,476.24 138,739.24
EXPENDITURES
Current:
Contractual services 3,038,943.00 3,104,185.86 3,039,613.47 64,572.39
General operating expenses 345,421.00 345,421.00 383,601.29 (38,180.29)
Internal service expense 169,300.00 169,300.00 156,726.29 12,573.71
Material and supplies 1,287,292.00 1,388,116.89 1,444,524.51 (56,407.62)
Personnel services 314,922.00 314,922.00 243,348.73 71,573.27
Special projects expense 1,916.00 141,916.00 139,368.45 2,547.55
Total current 5,157,794.00 5,463,861.75 5,407,182.74 56,679.01
Debt service:
Principal 585,000.00 585,000.00 585,000.00 -
Interest 376,857.00 376,857.00 376,856.26 0.74
Total debt service 961,857.00 961,857.00 961,856.26 0.74
Capital outlay:
Capital Improvement Projects 3,327,580.00 3,243,944.51 1,609,076.04 1,634,868.47
Equipment 204,750.00 205,287.11 211,220.69 (5,933.58)
Total capital outlay 3,532,330.00 3,449,231.62 1,820,296.73 1,628,934.89
Total expenditures 9,651,981.00 9,874,950.37 8,189,335.73 1,685,614.64
Excess (deficiency) of revenues over expenditures (2,847,244.00) (3,070,213.37) (1,245,859.49) 1,824,353.88
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 3,792.57 3,792.57
Asset disposition 30,500.00 30,500.00 16,297.87 (14,202.13)
Transfers in 1,965,300.00 1,965,300.00 1,610,040.59 (355,259.41)
Total other financing source (uses) 1,995,800.00 1,995,800.00 1,630,131.03 (365,668.97)
Net change in fund balances (851,444.00) (1,074,413.37) 384,271.54 1,458,684.91
Fund balances - beginning 5,666,924.70 5,666,924.70 5,666,924.70 -
Prior period adjustment (34,000.00) (34,000.00) (34,000.00) -
Fund balances - ending $ 4,781,480.70 $ 4,558,511.33 $ 6,017,196.24 $ 1,458,684.91
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 314.41 $ 314.41
Residential charges 2,576,270.00 2,576,270.00 2,576,171.08 (98.92)
Commerical charges 43,260.00 43,260.00 46,950.40 3,690.40
Transfer station charges 1,814,671.00 1,814,671.00 2,107,417.68 292,746.68
Other fees and charges 75,000.00 75,000.00 78,149.50 3,149.50
Miscellaneous 97,500.00 97,500.00 89,181.21 (8,318.79)
Investment revenue 15,000.00 15,000.00 30,285.55 15,285.55
Total revenues 4,621,701.00 4,621,701.00 4,928,469.83 306,768.83
EXPENDITURES
Current:
Contractual services 2,006,674.00 1,998,198.90 1,698,230.72 299,968.18
General operating expenses 11,114.00 12,439.77 10,392.95 2,046.82
Internal service expense 467,654.00 467,654.00 560,966.68 (93,312.68)
Material and supplies 231,315.00 230,644.33 221,716.11 8,928.22
Personnel services 1,168,120.00 1,168,120.00 1,152,454.86 15,665.14
Special projects expense 69,532.00 69,532.00 66,940.30 2,591.70
Total current 3,954,409.00 3,946,589.00 3,710,701.62 235,887.38
Debt service:
Administrative charges - - 324.27 (324.27)
Principal 359,281.00 359,281.00 359,280.51 0.49
Interest 109,534.00 109,534.00 109,533.28 0.72
Total debt service 468,815.00 468,815.00 469,138.06 (323.06)
Capital outlay:
Capital Improvement Projects - 1,320.00 1,626.81 (306.81)
Equipment 33,725.00 40,225.00 34,126.00 6,099.00
Total capital outlay 33,725.00 41,545.00 35,752.81 5,792.19
Total expenditures 4,456,949.00 4,456,949.00 4,215,592.49 241,356.51
Excess (deficiency) of revenues over expenditures 164,752.00 164,752.00 712,877.34 548,125.34
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 250.00 250.00
Asset disposition 2,300.00 2,300.00 3,231.05 931.05
Total other financing source (uses) 2,300.00 2,300.00 3,481.05 1,181.05
Net change in fund balances 167,052.00 167,052.00 716,358.39 549,306.39
Fund balances - beginning 852,647.92 852,647.92 852,647.92 -
Fund balances - ending $ 1,019,699.92 $ 1,019,699.92 $ 1,569,006.31 $ 549,306.39
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Concession revenues $ 44,247.00 $ 44,247.00 $ 48,932.65 $ 4,685.65
Usage fees 490,311.00 490,311.00 442,888.78 (47,422.22)
Miscellaneous 1,500.00 1,500.00 1,532.30 32.30
Investment revenue 750.00 750.00 1,378.70 628.70
Total revenues 536,808.00 536,808.00 494,732.43 (42,075.57)
EXPENDITURES
Current:
Contractual services 53,194.00 52,849.57 51,771.41 1,078.16
General operating expenses 4,490.00 4,490.00 2,036.17 2,453.83
Internal service expense 42,215.00 42,215.00 32,916.23 9,298.77
Material and supplies 101,573.00 102,673.00 97,274.66 5,398.34
Personnel services 391,054.00 391,054.00 360,073.64 30,980.36
Special projects expense 10,000.00 9,244.43 3,422.76 5,821.67
Total current 602,526.00 602,526.00 547,494.87 55,031.13
Total expenditures 602,526.00 602,526.00 547,494.87 55,031.13
Excess (deficiency) of revenues over expenditures (65,718.00) (65,718.00) (52,762.44) 12,955.56
OTHER FINANCING SOURCES (USES)
Transfers in 65,718.00 173,068.00 151,937.56 (21,130.44)
Total other financing source (uses) 65,718.00 173,068.00 151,937.56 (21,130.44)
Net change in fund balances - 107,350.00 99,175.12 (8,174.88)
Fund balances - beginning 5,000.00 5,000.00 5,000.00 -
Fund balances - ending $ 5,000.00 $ 112,350.00 $ 104,175.12 $ (8,174.88)
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Concession revenues $ 61,600.00 $ 61,600.00 $ 52,953.90 $ (8,646.10)
Usage fees 333,111.00 333,111.00 296,805.43 (36,305.57)
Miscellaneous 7,300.00 7,300.00 1,204.21 (6,095.79)
Investment revenue 750.00 750.00 764.71 14.71
Total revenues 402,761.00 402,761.00 351,728.25 (51,032.75)
EXPENDITURES
Current:
Contractual services 91,709.00 105,123.60 95,035.53 10,088.07
General operating expenses 3,724.00 2,205.00 1,882.62 322.38
Internal service expense 41,121.00 41,121.00 44,719.59 (3,598.59)
Material and supplies 188,524.00 181,838.40 164,807.45 17,030.95
Personnel services 657,616.00 657,616.00 654,628.32 2,987.68
Special projects expense 77,237.00 72,027.00 67,808.88 4,218.12
Total current 1,059,931.00 1,059,931.00 1,028,882.39 31,048.61
Debt service:
Principal 23,491.00 23,491.00 23,491.36 (0.36)
Interest 885.00 885.00 1,314.03 (429.03)
Total debt service 24,376.00 24,376.00 24,805.39 (429.39)
Capital outlay:
Capital Improvement Projects - - 14,235.00 (14,235.00)
Total capital outlay - - 14,235.00 (14,235.00)
Total expenditures 1,084,307.00 1,084,307.00 1,067,922.78 16,384.22
Excess (deficiency) of revenues over expenditures (681,546.00) (681,546.00) (716,194.53) (34,648.53)
OTHER FINANCING SOURCES (USES)
Asset disposition - - 3,928.38 3,928.38
Transfers in 681,546.00 878,798.00 880,426.94 1,628.94
Total other financing source (uses) 681,546.00 878,798.00 884,355.32 5,557.32
Net change in fund balances - 197,252.00 168,160.79 (29,091.21)
Fund balances - beginning 4,982.14 4,982.14 4,982.14 -
Fund balances - ending $ 4,982.14 $ 202,234.14 $ 173,142.93 $ (29,091.21)
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Concession revenues $ 93,172.00 $ 93,172.00 $ 74,960.69 $ (18,211.31)
Usage fees 381,417.00 381,417.00 355,726.00 (25,691.00)
Miscellaneous - - 4,940.45 4,940.45
Investment revenue - - 526.31 526.31
Total revenues 474,589.00 474,589.00 436,153.45 (38,435.55)
EXPENDITURES
Current:
Contractual services 146,710.00 148,507.75 120,508.81 27,998.94
General operating expenses 8,380.00 5,452.25 3,442.24 2,010.01
Internal service expense 12,268.00 12,268.00 9,673.87 2,594.13
Material and supplies 162,576.00 158,346.00 146,537.15 11,808.85
Personnel services 489,755.00 489,755.00 415,511.88 74,243.12
Special projects expense 26,436.00 31,796.00 19,761.87 12,034.13
Total current 846,125.00 846,125.00 715,435.82 130,689.18
Debt service:
Interest - - 2,105.91 (2,105.91)
Total debt service - - 2,105.91 (2,105.91)
Capital outlay:
Equipment - - 15,478.00 (15,478.00)
Other capital expenditures - - 18,609.00 (18,609.00)
Total capital outlay - - 34,087.00 (34,087.00)
Total expenditures 846,125.00 846,125.00 751,628.73 94,496.27
Excess (deficiency) of revenues over expenditures (371,536.00) (371,536.00) (315,475.28) 56,060.72
OTHER FINANCING SOURCES (USES)
Contributed cap - other - - 30,800.00 30,800.00
Transfers in 371,536.00 484,186.00 391,581.12 (92,604.88)
Total other financing source (uses) 371,536.00 484,186.00 422,381.12 (61,804.88)
Net change in fund balances - 112,650.00 106,905.84 (5,744.16)
Fund balances - beginning 15,744.16 15,744.16 15,744.16 -
Fund balances - ending $ 15,744.16 $ 128,394.16 $ 122,650.00 $ (5,744.16)
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Indoor Sports Complex Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 716,000.00 $ 716,000.00 $ 716,000.00 $ -
Investment revenue - - 356.80 356.80
Total revenues 716,000.00 716,000.00 716,356.80 356.80
EXPENDITURES
Current:
Contractual services 202,874.00 243,074.00 245,863.21 (2,789.21)
General operating expenses 6,950.00 3,250.00 2,320.72 929.28
Material and supplies 89,367.00 129,517.00 106,710.49 22,806.51
Personnel services 279,609.00 289,909.00 284,881.59 5,027.41
Total current 578,800.00 665,750.00 639,776.01 25,973.99
Capital outlay:
Equipment 137,200.00 112,550.00 132,509.75 (19,959.75)
Total capital outlay 137,200.00 112,550.00 132,509.75 (19,959.75)
Total expenditures 716,000.00 778,300.00 772,285.76 6,014.24
Excess (deficiency) of revenues over expenditures - (62,300.00) (55,928.96) 6,371.04
OTHER FINANCING SOURCES (USES)
Asset disposition - - 185.00 185.00
Total other financing source (uses) - - 185.00 185.00
Net change in fund balances - (62,300.00) (55,743.96) 6,556.04
Fund balances - beginning 204,671.79 204,671.79 204,671.79 -
Prior period adjustment 6,326.00 6,326.00 6,326.00 -
Fund balances - ending $ 210,997.79 $ 148,697.79 $ 155,253.83 $ 6,556.04
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 314.41 $ 314.41
Charges for services 10,000.00 10,000.00 12,741.31 2,741.31
Internal charges 1,517,300.00 1,517,300.00 1,507,934.09 (9,365.91)
Miscellaneous - - 1,804.23 1,804.23
Investment revenue 2,528.00 2,528.00 6,586.44 4,058.44
Total revenues 1,529,828.00 1,529,828.00 1,529,380.48 (447.52)
EXPENDITURES
Current:
Contractual services 289,933.00 381,675.24 320,200.16 61,475.08
General operating expenses 5,050.00 6,343.00 6,318.13 24.87
Internal service expense 7,157.00 7,157.00 7,157.00 -
Material and supplies 538,679.00 485,643.76 479,565.09 6,078.67
Personnel services 689,009.00 689,009.00 682,130.01 6,878.99
Special projects expense - - 4,619.60 (4,619.60)
Total current 1,529,828.00 1,569,828.00 1,499,989.99 69,838.01
Total expenditures 1,529,828.00 1,569,828.00 1,499,989.99 69,838.01
Excess (deficiency) of revenues over expenditures - (40,000.00) 29,390.49 69,390.49
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 14,482.60 14,482.60
Asset disposition 16,743.00 16,743.00 18,220.20 1,477.20
Transfers out (16,743.00) (16,743.00) (19,415.20) (2,672.20)
Total other financing source (uses) - - 13,287.60 13,287.60
Net change in fund balances - (40,000.00) 42,678.09 82,678.09
Fund balances - beginning 261,277.10 261,277.10 261,277.10 -
Fund balances - ending $ 261,277.10 $ 221,277.10 $ 303,955.19 $ 82,678.09
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 30,000.00 $ 30,000.00 $ 15,334.89 $ (14,665.11)
Internal charges 4,187,005.00 4,187,005.00 4,154,374.76 (32,630.24)
Miscellaneous - - 746.81 746.81
Investment revenue 30,000.00 30,000.00 50,026.85 20,026.85
Total revenues 4,247,005.00 4,247,005.00 4,220,483.31 (26,521.69)
EXPENDITURES
Current:
Contractual services 4,175,255.00 4,175,255.00 3,640,797.70 534,457.30
General operating expenses 25,000.00 22,500.00 10,172.22 12,327.78
Material and supplies - 2,500.00 1,889.98 610.02
Special projects expense 20,000.00 20,000.00 1,530.02 18,469.98
Total current 4,220,255.00 4,220,255.00 3,654,389.92 565,865.08
Total expenditures 4,220,255.00 4,220,255.00 3,654,389.92 565,865.08
Excess (deficiency) of revenues over expenditures 26,750.00 26,750.00 566,093.39 539,343.39
OTHER FINANCING SOURCES (USES)
Transfers out (26,750.00) (26,750.00) (26,750.00) -
Total other financing source (uses) (26,750.00) (26,750.00) (26,750.00) -
Net change in fund balances - - 539,343.39 539,343.39
Fund balances - beginning 2,751,486.93 2,751,486.93 2,751,486.93 -
Fund balances - ending $ 2,751,486.93 $ 2,751,486.93 $ 3,290,830.32 $ 539,343.39
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 583,492.00 $ 583,492.00 $ 585,564.19 $ 2,072.19
Investment revenue 16,562.00 16,562.00 23,666.46 7,104.46
Total revenues 600,054.00 600,054.00 609,230.65 9,176.65
EXPENDITURES
Current:
Contractual services 547,554.00 547,554.00 677,516.70 (129,962.70)
General operating expenses 50,000.00 50,000.00 63,199.94 (13,199.94)
Material and supplies 2,500.00 2,500.00 - 2,500.00
Total current 600,054.00 600,054.00 740,716.64 (140,662.64)
Total expenditures 600,054.00 600,054.00 740,716.64 (140,662.64)
Excess (deficiency) of revenues over expenditures - - (131,485.99) (131,485.99)
Net change in fund balances - - (131,485.99) (131,485.99)
Fund balances - beginning 1,245,184.99 1,245,184.99 1,245,184.99 -
Fund balances - ending $ 1,245,184.99 $ 1,245,184.99 $ 1,113,699.00 $ (131,485.99)
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, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 355,515.00 $ 355,515.00 $ 345,382.77 $ (10,132.23)
Investment revenue 15,000.00 15,000.00 23,778.40 8,778.40
Total revenues 370,515.00 370,515.00 369,161.17 (1,353.83)
EXPENDITURES
Current:
Material and supplies - - 11.31 (11.31)
Total current - - 11.31 (11.31)
Capital outlay:
Equipment 220,800.00 220,800.00 201,109.90 19,690.10
Total capital outlay 220,800.00 220,800.00 201,109.90 19,690.10
Total expenditures 220,800.00 220,800.00 201,121.21 19,678.79
Excess (deficiency) of revenues over expenditures 149,715.00 149,715.00 168,039.96 18,324.96
OTHER FINANCING SOURCES (USES)
Asset disposition 20,000.00 20,000.00 29,550.00 9,550.00
Total other financing source (uses) 20,000.00 20,000.00 29,550.00 9,550.00
Net change in fund balances 169,715.00 169,715.00 197,589.96 27,874.96
Fund balances - beginning 1,400,504.46 1,400,504.46 1,400,504.46 -
Fund balances - ending $ 1,570,219.46 $ 1,570,219.46 $ 1,598,094.42 $ 27,874.96
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
General Equipment Replacement
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 195,000.00 $ 195,000.00 $ 194,893.07 $ (106.93)
Investment revenue - - 14,177.06 14,177.06
Total revenues 195,000.00 195,000.00 209,070.13 14,070.13
EXPENDITURES
Current:
Development Services 140,000.00 140,000.00 141,672.50 (1,672.50)
Total current 140,000.00 140,000.00 141,672.50 (1,672.50)
Capital outlay:
Development Services 250,000.00 250,000.00 - 250,000.00
Total capital outlay 250,000.00 250,000.00 - 250,000.00
Total expenditures 390,000.00 390,000.00 141,672.50 248,327.50
Excess (deficiency) of revenues over expenditures (195,000.00) (195,000.00) 67,397.63 262,397.63
OTHER FINANCING SOURCES (USES)
Transfers in 195,000.00 195,000.00 194,273.53 (726.47)
Transfers in - - (150,000.00) (150,000.00)
Total other financing source (uses) 195,000.00 195,000.00 44,273.53 (150,726.47)
Net change in fund balances - - 111,671.16 111,671.16
Fund balances - beginning 858,670.69 858,670.69 858,670.69 -
Fund balances - ending $ 858,670.69 $ 858,670.69 $ 970,341.85 $ 111,671.16
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Riverfront Region Economic Development
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 35,698.61 $ 35,698.61
Total revenues - - 35,698.61 35,698.61
EXPENDITURES
Capital outlay:
Capital Improvement Projects - 450,000.00 357,980.38 92,019.62
Total capital outlay - 450,000.00 357,980.38 92,019.62
Total expenditures - 450,000.00 357,980.38 92,019.62
Excess (deficiency) of revenues over expenditures - (450,000.00) (322,281.77) 127,718.23
OTHER FINANCING SOURCES (USES)
Transfers in - - 238,673.00 238,673.00
Transfers out (650,000.00) (650,000.00) (650,000.00) -
Total other financing source (uses) (650,000.00) (650,000.00) (411,327.00) 238,673.00
Net change in fund balances (650,000.00) (1,100,000.00) (733,608.77) 366,391.23
Fund balances - beginning 1,550,054.62 1,550,054.62 1,550,054.62 -
Fund balances - ending $ 900,054.62 $ 450,054.62 $ 816,445.85 $ 366,391.23
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax Trust Fund IV
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2018
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
128
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, 2018. The City of Cape Girardeau, Missouri’s major federal programs
are identified in the summary of auditors’ results section of the accompanying Schedule of
Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with 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.
129
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, 2018.
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 8, 2019
130
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, 2018, 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 8, 2019.
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
131
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 8, 2019
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 14.228 2008-DN-02 257,357$
2008-DN-301 349,889 607,246$
Passed Through Missouri Housing
Development Commission -
Emergency Solutions Grant Program 14.231 18-714-E 43,633$
17-721-E 87,013 130,646
TOTAL U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT 737,892$
U.S. DEPARTMENT OF JUSTICE:
Bulletproof Vest Partnership Program 16.607 N/A 3,048$
Public Safety Partnership and Community
Policing Grants 16.710 N/A 125,644
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 N/A 20,199
TOTAL U.S. DEPARTMENT OF JUSTICE 148,891$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2018
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
132
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 (1)20.106 14-077A-2 333,547$
15-077A-1 420,143
16-077A-1 646,532 1,400,222$
Highway Planning and Construction 20.205 TAP-1500(023)21,740$
ER-1518(005)1,343,486
STP-1500(022)13,456
MO-81-0013 94,185
Passed Through Illinois Department of
Transportation -
Highway Planning and Construction 20.205 SPR-PL-3000(48 2,341 1,475,208
Passed Through Missouri Department of
Transportation -
Highway Safety Cluster:
State and Community Highway Safety 20.600 17-PT-02-097 4,447$
18-PT-02-019 2,883
17-SA-09-001 15,147
18-SA-09-001 39,918
17-CP-09-003 97,410
18-CP-09-003 85,970 245,775
National Priority Safety Programs 20.616 17-M5HVE-03-038 1,594$
17-M5HVE-03-039 3,128 4,722
Total Highway Safety Cluster 250,497
Alcohol Open Container Requirements 20.607 18-154-AL-181 23,890$
18-154-AL-018 7,700
18-154-AL-019 3,102 34,692
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 3,160,619$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2018
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
133
Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number
DELTA REGIONAL AUTHORITY:
Delta Area Economic Development 90.201 N/A 95,000$
TOTAL DELTA REGIONAL AUTHORITY 95,000$
U.S. DEPARTMENT OF HOMELAND SECURITY:
Passed Through the Missouri State Emergency
Management Agency
Disaster Grants - Public Assistance (Presidentially
Declared Disasters 97.036 FEMA-4317-DR-MO 938$
Assistance to Firefighters Grant (1)97.044 884,910
Passed Through Missouri Office of
Homeland Security - Homeland Security
Grant Program 97.067 EMW-2016-SS-00049 35,204$
EMW-2015-SS-00020-019 36,755
EMW-2017-SS-00047 12,085 84,044
Law Enforcement Officer Reimbursement
Agreement Program 97.090 HSTS0216HSLR823 18,288
TOTAL U.S. DEPARTMENT OF HOMELAND
SECURITY 988,180$
TOTAL FEDERAL AWARDS 5,230,582$
(1) Identified major program.
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2018
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
134
135
City of Cape Girardeau, Missouri
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2018
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, 2018. 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.
136
City of Cape Girardeau, Missouri
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2018
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
137
Identification of major programs.
CFDA Number Name of Federal Program
20.106 Airport Improvement Program
97.044 Assistance to Firefighters Grant Program
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low-risk auditee: X yes 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.
FINANCE DIRECTOR
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 3 0, 2018
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
1. FINANCIAL STATEMENT FINDINGS:
No findings were noted that are required to be reported.
2. FEDERAL A WARD FINDINGS AND QUESTIONED COSTS:
No Federal findings were reported in the prior year.
138
"HOME OF MISSOURI STATE FLAG"
CITY HALL
P.O. BOX617
CAPE GIRARDEAU, MO 63702-0617
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