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CITY OF CAPE GIRARDEAU, MISSOURI
Cape Girardeau, Missouri
For the Year Ended June 30, 2020
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 4-21
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 22-23
STATEMENT OF ACTIVITIES 24
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
BALANCE SHEET 25-26
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION 27
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES 28
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES 29
PROPRIETARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 30-31
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION 32
STATEMENT OF CASH FLOWS 33-34
FIDUCIARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF FIDUCIARY NET POSITION 35
NOTES TO BASIC FINANCIAL STATEMENTS 36-81
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
NOTES TO BUDGETARY COMPARISON SCHEDULES 87-90
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – GENERAL DIVISION 91
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – POLICE DIVISION 92
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – FIRE DIVISION 93
SCHEDULE OF EMPLOYER CONTRIBUTIONS 94
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB
LIABILITY AND RELATED RATIOS 95
SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX -
SEWER SYSTEM IMPROVEMENTS 96
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL CAPITAL IMPROVEMENTS 97
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK STORM WATER SALES TAX – CAPITAL 98
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CAPITAL IMPROVEMENT SALES TAX –
WATER SYSTEM 99
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – CONVENTION AND TOURISM 100
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – DOWNTOWN BUSINESS DISTRICT 101
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HEALTH 102
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – MOTOR FUEL TAX 103
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST FUND II 104
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FIRE SALES TAX FUND 105
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PUBLIC SAFETY TRUST FUND 106
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL CAPITAL IMPROVEMENTS 107
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – COMMUNITY DEVELOPMENT BLOCK
GRANT PROJECTS 108
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGE IN FUND BALANCES – BUDGET AND
ACTUAL – PARKS/STORM WATER – CAPITAL II 109
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – PARK/STORM WATER SALES TAX 110
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – HOUSING DEVELOPMENT GRANT FUND 111
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SEWER 112
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WATER 113
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SOLID WASTE 114
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GOLF COURSE 115
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – SPORTING COMPLEXES 116
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – INDOOR SPORTS COMPLEX FUND 117
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – INFORMATION TECHNOLOGY 118
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – FLEET MANAGEMENT 119
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – EMPLOYEE BENEFITS FUND 120
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – WORKER’S COMPENSATION FUND 121
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL EQUIPMENT REPLACEMENT 122
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – RIVERFRONT REGION ECONOMIC
DEVELOPMENT 123
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – TRANSPORTATION SALES TAX IV FUND 124
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 125-126
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS 127-128
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 129-131
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 132
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 133-134
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 135
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, 2020, 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, 2020, 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 21 and 82 through 95 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 t he
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 March
6, 2021, 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
March 6, 2021
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, 2020. 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 and
deferred inflows at the close of the most
recent fiscal year by $353,887,939.84 (net
position). Of this amount, $57,168,456.10
(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 $45,275,448.16.
Approximately 3.4% of this total amount,
$1,542,134.03 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 $1,547,576.09 or 5.2% of total general
fund expenditures and transfers.
At the end of the current fiscal year, general
fund balance reserved for emergencies was
$3,844,442.00 or 13.0% of total general fund
expenditures and transfers.
o The City’s total long-term debt decreased by
$5,466,875.07 (4.9%) during the current
fiscal year as a result of $11,229,508.50 in
new debt, the early payoff of $9,285,000.00
in water revenue bonds and $7,411,383.57 in
amortization and regularly scheduled
principal payments.
During the year $1,835,000.00 in new debt
was issued to fund a new City Hall project.
The debt service on the new debt will be
repaid from a new capital improvement sales
tax which replaced an expiring capital
improvement sales tax which had previously
supported the construction of the City’s sewer
plant.
Additionally, $9,394,508.50 in water revenue
bonds were issued during the year to fund the
early retirement of $9,285,000.00 in water
revenue bonds.
o The City’s fixed assets decreased
$5,091,048.11 during the year. Net fixed
asset additions of $12,468,474.05 were made
during the year. Depreciation for the current
fiscal year reduced fixed assets by
$17,559,522.16.
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
CITY OF CAPE GIRARDEAU, MISSOURI
5
only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial
statements distinguish functions of the City of
Cape Girardeau that are principally supported by
taxes and intergovernmental revenues
(governmental activities) from other functions
that are intended to recover all or a significant
portion of their costs through user fees and
charges (business-type activities). The
governmental activities of the City of Cape
Girardeau include administrative services,
development services, parks and recreation,
public safety, and public works. The business-
type activities of the City include sewer, water
and solid waste utilities and golf course, indoor
sports complex and sports complexes operations.
The government-wide financial statements can
be found on pages 22 to 24 of this report.
Fund Financial Statements. A fund is a
grouping of related accounts that is used to
maintain control over resources that have been
segregated for specific activities or objectives.
The City of Cape Girardeau, like other state and
local governments, uses fund accounting to
ensure and demonstrate compliance with
finance-related legal requirements. All of the
funds of the City can be divided into three
categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental Funds. Governmental funds are
used to account for essentially the same
functions reported as governmental activities in
the government-wide financial statements.
However, unlike the government-wide financial
statement, governmental fund financial
statements focus on near-term inflows and
outflows of spendable resources, as well as on
balances of spendable resources available at the
end of the fiscal year. Such information may be
useful in evaluating a government’s near-term
financing requirements.
Because the focus of the governmental funds is
narrower than that of the government-wide
financial statements, it is useful to compare the
information presented for governmental funds
with similar information presented for
governmental activities in the government-wide
financial statements. By doing so, readers may
better understand the long-term impact of the
government’s near term financing decisions.
Both the governmental fund balance sheet and
the governmental fund statement of revenues,
expenditures, and changes in fund balances
provide a reconciliation to facilitate this
comparison between governmental funds and
governmental activities.
The City of Cape Girardeau maintained 28
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, casino
revenue, and transportation trust V, 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 25 to 29 of this report.
Proprietary Funds. The City of Cape Girardeau
maintains two types of proprietary funds.
Enterprise funds are used to report the same
functions presented as business-type activities in
the government-wide financial statements.
The City used enterprise funds to account for its
sewer, water, and solid waste utilities and its golf
course, 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
CITY OF CAPE GIRARDEAU, MISSOURI
6
are considered, or have been designated, to be
major funds of the City.
The internal service funds are combined into a
single, aggregated presentation in the proprietary
fund financial statements.
The basic proprietary fund financial statements
can be found on pages 30 to 34 of this report.
Budgetary comparison statements for all the
proprietary funds are present as supplemental
information.
Notes to the Financial Statements. The notes
provide additional information that is essential to
a full understanding of the data provided in the
government-wide and fund financial statements.
The notes to the financial statements can be
found beginning on page 36 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over
time as a useful indicator of a government’s
financial position. The City of Cape Girardeau’s
assets and deferred outflows exceeded its
liabilities and deferred inflows by
$353,887,939.84, an increase of $4,210,136.60
(1.2%). The City’s net investment in capital
assets (land, buildings, machinery, and
equipment less related outstanding debt used to
acquire those assets) of $287,803,397.78 makes
up 81.3% of the City’s net position.
This net investment increased $628,086.76
(0.2%) 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 capital
assets is reported net of related debt, it should be
noted that the resources needed to repay this debt
must be provided from other sources, since the
capital assets themselves cannot be used to
liquidate these liabilities.
An additional portion of the City’s net assets (2.5
percent) represent resources that are subject to
external restrictions on how they may be used.
The portion of the City’s net assets subject to
external restrictions was $174,899.81 (2.0%)
more than the previous year. The remaining
balance of net assets ($57,168,456.10) is
unrestricted and may be used to meet the City’s
ongoing obligations to citizens and creditors.
This reflects a $3,407,150.03 (6.3%) increase
over the previous year.
At the end of the current fiscal year, the City is
able to report positive balances in all three
categories of net assets, both for the government
as a whole, as well as for its separate
governmental and business-type activities. The
same situation was true of the prior year.
City of Cape Girardeau's Net Position
Governmental Business-type
Activity Activities Total
2020 2019 2020 2019 2020 2019
Current and other assets 56,702,554.26 58,162,245.47 25,195,571.27 25,128,971.62 81,898,125.63 83,291,217,09
Capital assets 212,401,551.58 214,931,078.62 180,674,027.61 183,235,548.68 393,075,579.19 398,166,627.30
Total assets 269,104,105.84 273,093,324.09 205,869,598.98 208,364,520.30 474,973,704.82 481,457,844.39
Deferred outflows 5,591,236.78 2,486,035.10 646,117.22 139,294.90 6,237,354.00 2,625,330.00
Current liabilities
4,599,871.87
6,291,162.72 8,222,497.44 7,990,112.08 12,822,369.31 14,281,274.80
Non-current liabilities 48,421,716.73 45,972,054.66 64,072,973.94 69,340,444.69 112,494,690.67 115,312,499.35
Total liabilities 53,021,588.60 52,263,217.38 72,295,471.38 77,330,556.77 125,317,059.98 129,593,774.15
Deferred inflows 1,725,174.52 4,143.664.27 280,884.48 667,932.73 2,006,059.00 4,811,597.00
Invested in capital assets,
Net of related debt 176,947,600.59 178,376,765.23 110,855,797.19 108,798,545.79 287,803,397.78 287,175,311.02
Restricted 5,166,172.96 5,038,796.15 3,749,913.00 3,702,390.00 8,916,085.96 8,741,186.15
Unrestricted 37,834,805.95 35,756,916.16 19,333,650.15 18,004,389.91 57,168,456.10 53,761,306.07
Total net position 219,948,579.50 219,172,477.54 133,939,360.34 130,505,325.70 353,887,939.84 349,677,803.24
CITY OF CAPE GIRARDEAU, MISSOURI
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Governmental Activities. Governmental activities increased the City of Cape Girardeau’s net position by
$755,026.91 during the current year (compared to $851.032.90 decrease in the previous fiscal year). During the year
investment in capital assets net of capital debt related to governmental activities decreased by $1,429,164.64 or
0.8%.
City of Cape Girardeau's Change in Net Assets
Governmental Business-type
activities activities Total
2020 2019 2020 2019 2020 2019
Revenues:
Program revenue:
Charges for service 5,247,793.78 5,648,235.01 20,151,112.73 20,100,973.94 25,398,906.51 25,749,208.95
Operating grants and
contributions 1,749,582.26 1,124,694.64 134,735.70 5,000.00 1,884,317.96 1,129,694.64
Capital grants and
contributions 175,155.96 2,855,201.68 484,067.18 2,262,079.72 659,223.14 5,117,281.40
General revenues:
Property taxes 2,655,216.95 2,501,594.31 - - 2,655,216.95 2,501,594.31
Sales taxes 28,463,968.69 28,372,310.36 - - 28,463,968.69 28,372,310.36
Other taxes 11,993,525.82 13,186,432.30 - - 11,993,525.82 13,186,432.30
Other 1,652,174.64 1,719,766.95 537,176.66 659,023.81 2,189,351.30 2,378,790.76
Total revenues 51,937,418.10 55,408,235.25
21,307,092.27
23,027,077.47 73,244,510.37 78,435,312.72
Expenses:
Administrative 3,539,308.41 3,416,346.76 - - 3,539,308.41 3,416,346.76
Capital Improvements 82,636.91 174,481.76 - - 82,636.91 174,481.76
Development Services 7,071,293.71 6,860,723.87 - - 7,071,293.71 6,860,723.87
Interest and other costs 1,035,345.66 990,773.16 - - 1,035,345.66 990,773.16
Parks and Recreation 6,166,241.21 6,107,181.68 - - 6,166,241.21 6,107,181.68
Public Safety 17,693,029.16 16,644,305.45 - - 17,693,029.16 16,644,305.45
Public Works 8,198,212.19 8,192,009.10 - - 8,198,212.19 8,192,009.10
Sewer - - 9,541,326.88 10,009,803.97 9,541,326.88 10,009,803.97
Water - - 7,943,673.20 7,313,146.19 7,943,673.20 7,313,146.19
Solid Waste - - 4,727,806.71 4,461,691.52 4,727,806.71 4,461,691.52
Golf Course - - 720,205.86 710,265.15 720,205.86 710,265.15
Indoor Sports Complex - - 989,349.51 1,034,814.60 989,349.51 1,034,814.60
Sporting Complexes - - 1,346,108.13 1,334,334.93 1,346,108.13 1,334,334,93
Total expenses 43,786,067.25 42,385,821.78 25,268,470.29 24,864,056.36 69,054,537.54 67,249,878.14
Increase in net position
Before pension upgrade and transfers 8,151,350.85 13,022,413.47 ( (3,961,378.02) ( (1,836,978.89) 4,189,972.83 11,185,434.58
Pension benefit upgrade - (4,009,072.70) - (843,643.30) - (4,852,716.00)
Transfers (7,396,323.94) (9,864,373.67)
7,396,323.94
9,864,373.67 - -
Increase in net position 755,026.91 (851,032.90)
3,434,945.92
7,183,751.48 4,189,972.83 6,332,718.58
Net position-beginning of year 219,172,477.54 219,897,018.29 130,505,325.70 123,280,985.41 349,677,803.24 343,178,003.70
Prior period adjustments 21,075.05 126,492.15 (911.28) 40,588.81 20,163.77 167,080.96
Net position-end of year 219,948,579.50 219,172,477.54 133,939,360.34 130,505,325.70 353,887,939.84 349,677,803.24
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 $400,441.23 (7.1%) less than the previous year. During the current year development
service, administrative, park and recreation, and public works revenues declined $324,042.85 (17.6%),
$26,567.76 (1.4%), $112,832.01 (7.0%) and $55,463.12 (71.4%), respectively, from the previous year while
public safety revenues increased $118,464.51 (53.5%) from the previous year.
The most significant change in service charge revenue from development services resulted from a $308,117.54
decline in special event revenue from the previous year. The previous year included $322,467.54 of revenue
generated by an air show. The City chose not to sponsor an air show in the current year; however, the current
year’s revenue included $14,000.00 in sponsorship fees from the pr evious year’s airshow. There was
$373,332.85 in costs associated with the previous year’s airshow.
Other significant changes to service charge revenue from development services included the following:
1) There was a $29,845.55 (24.9%) decrease in development related revenue.
2) There was a $47,018.13 (32.2%) increase in building related permit revenue.
3) There was a $23,767.40 (6.8%) decline in revenue from internal charges to capital projects and other City
business activity projects.
The current year’s decrease in administrative service charge revenue resulted from a $218,981.24 (28.9%)
decrease in revenue from the municipal court which was partially offset by a $154,171.04 (29.4%) increase of
administrative fees charged to the City’s enterprise funds and a $38,242.44 (6.3%) increase in other service
charge revenues. Traffic cases handled by the municipal court decreased 67.2% from the previous year. During
the current year the City begin charging its enterprise funds for services provi ded by its legal and public
information divisions.
The current year’s decrease in parks and recreation service charges resulted mainly from significant declines in
two revenues sources. Revenues from entrance fees to the Osage Community Center decreased $43,557.34
(17.9%) and revenues from the City’s family aquatic center (Cape Splash) decreased $80,987.90 (14.4%). Total
service charge revenues for all other parks and recreation services increased $1 1,713.23 (1.7%) during the past
year. The current year’s parks and recreation revenues were negatively impacted by COVID-19.
Changes in public works service charges reflected a $55,463.12 (71.4%) decrease in revenue from internal
charges to capital projects and other City business activity projects. In the previous year $41,387.50 of internal
charges for use of street division employees used for the solid waste fund’s leaf collection program were
charged to that fund. During the current year the solid waste fund provided all labor for the leaf collection
program.
The current year’s increase in public safety service charge revenue reflected a $93,790.74 (88.9%) increase in
revenue from police services provided to outside agencies and entities and $41,992.04 in new fees from housing
federal prisoners. During the current year special assessment revenues from weed abatement and building
demolition declined $21,681.79 from the previous year. The remaining service charge revenue increased
$4,363.52 (7.0%) during the current year.
• Operating grants and contributions were $624,887.62 (55.6%) more than the previous year. During the current
year revenue from various airport operating grants and operating contributions of the Parks and Recreation
Foundation increased $715,475.08 (289.7%) and $5,792.41 (7.1%), respectively, from the previous year. These
increases were partially offset by decreases in emergency shelter, community development, and public safety
operating grant revenues of $2,738.58 (1.7%), $5,064.72 (100.0%) and $145,155.72 (23.0%), respectively. The
current year also had $56,579.15 in neighborhood improvement grant revenues. There were no neighborhood
improvement grant revenues in the previous year.
CITY OF CAPE GIRARDEAU, MISSOURI
9
Revenues from governmental activities (continued)
During the current year the airport received $131,064.00 for promotion of the airport through an Air Service
grant, $226,274.21 for the update of its master and layout plans from a state block grant, and $4 37,830.87 for
reimbursement of operating expenses from a CARES Act grant. In the previous year the airport received
$80,000.00 from the Air Service grant and nothing from the other two grants. The current year public safety
operating grant revenues were negatively impacted by COVID -19.
• Capital grants and contributions decreased $2,680,045.72 (93.9%) from the previous year. During the current
year the city received grants and contributions totaling $2.984.00, $152,276.43, and $19,895.53 for airport
improvements, various street, lighting and sidewalk projects, and various public safety equipment purchases,
respectively.
During the previous year the city received grants and contributions totaling $298,246.00, $2,250,596.97,
and $106,358.71, respectively, for these items. During the previous year the City also received a
$200,000.00 donation to help upgrade Capaha Park baseball field.
• Property tax revenue was $153,622.64 (6.1%) more than the previous year. Property tax revenues included
payments in lieu of taxes totaling $139,285.56 from properties included in one tax increment financing district
(TIF). Excluding payments in lieu of taxes property tax revenue increased $99,715.13 (4.1%) during the year.
$124,772.69 of the TIF revenues collected during the year was distributed according to development
agreements for projects in the districts and $24,267.40 of previous year’s payments in lieu of tax were returned
to the original taxing entities. Undistributed TIF revenues are reflected as restricted net position in the
Statement of Net Position. Assessed values finalized by the board of equalization increased $12,803,182 (2.4%)
and $8,447,027 (6.6%) for real estate and personal property, respectively. Assessed values from new
construction and new annexation totaling $14,344,210 and $100, respectively, were included in the real estate
increase. The City’s general tax levy rate was set 0.2% higher than the previous year.
Sales tax revenue was 54.8% of the total revenue during the current year vs. 51.2% in the previous year. This
year’s revenue was $91,658.33 (0.3%) more than the previous year. Payment in lieu of sales tax totaling
$83,810.52 from the city’s casino accounted for most of this increa se. This was the first year the City had
received any payment due per a previous development agreement with the casino. $74,490.08 of this year’s
payment related to previous years’ sales. From fiscal year ending June 30, 2016 through fiscal year ending June
30, 2020 sale tax revenue, adjusted for new taxes, had annual growth rates of 2.5%,-1.3%, 2.4%, -1.0% and
0.0%, respectively. Sales tax revenue from the last quarter of the current year was negatively impacted by
COVID-19.
• Other taxes were $1,192,906.48 (9.0%) less than the previous year. Franchise taxes, motor fuel taxes,
convention and tourism taxes, merchant licenses, liquor licenses, cigarette taxes, economic activity taxes and
gaming taxes declined $308,587.72 (6.6%), $26,784.81 (1.8%), $102,370.34 (4.3%), $41,404.45 (3.1%),
$25,242.90 (30.9%), $7,083.97 (5.3%), $20,695.90 (70.7%) and $660,736.39 (22.4%), respectively, from the
previous year. During the current year the City received $8,587.17 in economic activity taxes from its TIF
district which is in included in the other tax total. $18,893.27 of the economic activity taxes collected during the
current and previous year was distributed according to development agreements for projects in the district.
Undistributed TIF revenues are reflected as restricted net position in the Statement of Net Position.
• Ameren paid 71.4% of the total franchise tax collected during the year based on its electricity and natural gas
revenues vs. 71.2% in the previous year. During the current year Ameren paid $212,037.24 (6.3%) less than the
previous year. Payments received on electricity sales and natural gas sales decreased $160,145.20 (5.8%) and
$51,892.04 (8.2%), respectively, during the current year. Average monthly electric rates were about the same
during the current year when compared to the previous year. Average monthly natural gas rates were about
5.4% lower during the current year when compared to the previous year. Differences in weather can also
positively or negatively influence franchise tax revenues from one year to another.
CITY OF CAPE GIRARDEAU, MISSOURI
10
Revenues from governmental activities (continued)
• During the current year the City received payments in lieu of gross receipt franchise taxes totaling $334,049.49
and $329,526.92 from its sewer and water funds. This was $24,807.06 (6.9%) and $12,059.57 (3.5%) less,
respectively, than the previous year. A water rate increase of 2% was effective July 1, 2019.
• Franchise tax paid during the current year by the City’s telecommunication and cable TV service providers
decreased $51,432.81 (19.8%) and $8,251.04 (2.0%) from the previous year. During the current year the City
received $13,750.00 from one of its telecommunication service providers who had previously been paying
$27,500.00 per year. This reduction resulted from the provider being merged into another provider. The
remaining decline related to less revenue from several of the main city’s telecommunication service providers.
• The decrease in the convention and tourism taxes was comprised of decreases to restaurant taxes and hotel /
motel taxes of $49,165.82 (3.1%) and $53,204.52 (6.9%), respectively, from the previous year. Revenues of
these taxes from the last quarter of the current year w ere negatively impacted by COVID-19.
• Gaming revenue received by the casino revenue fund and the riverfront development fund decreased
$627,436.81 (22.6%) and $33,299.58 (17.9%) from the previous year. The Casino was closed approximately 2.5
months during the current year as a result of COVID-19.
• Other revenue which decreased $67,592.31 (3.9%) from the previous year to $1,652,174.64 was comprised of
unrestricted grants and contributions, investment earnings and gain (loss) on disposal of assets which totaled
$383,043.95, $1,497,927.03, and $(228,796.34), respectively, during the current year. These revenues grew
(declined) $321,733.56 (524.8%), $(29,282.68) (1.9%), and ($360,043.19) (274.3%), respectively, from the
previous year. The current year’s investment earnings included market value increases of $323,158.87 while the
previous year’s investment earnings included market value increases of $383,805.93. Pooled cash balances
averaged $42,635,510.31 during the current year compared to $41,342,666.96 during the previous year. The
pooled cash balances earned an average rate of 2.12% during the current year compared to 2.19% in the
previous year. During the current year the City sold properties associated with its old police headquarters at a
$359,061.34 loss and other excess land at a gain of $14,914.94. The remaining gain totaling $115,350.06
resulted from sales or other disposal of city equipment above their book value.
Expenses from governmental activities
• Total government activities expenses increased $1,400,245.47 (3.3%) 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 45.2%, 0.2% and 2.4% of the total governmental activity
expenses, respectively. 30.2% of the personnel costs were for benefits and the remaining was for salaries
including vacation and sick leave expense. Salary and benefits expenses increased $363,386.90 (2.3%) and
$864,743.13 (14.3%) during the current year. Operating expenses, capital improvement expenses and interest
and other costs increased (decreased) $219,387.79 (1.1%), $(91,844.85) (52.6%) and $44,572.50 (4.5%),
respectively, during the current year.
Full-time salary expense increased $426,391.81 (3.2%) during the current year. Part-time and overtime salary
expense decreased $15,406.04 (1.2%) and $47,598.87 (4.5%) during the current year. The current year included
a 2% across the board wage increase at the beginning of the year.
An annual report issued by the Missouri Local Government Employees Retirement System and dated June 30,
2020 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 $730,167.20 as a result of these changes. In the previous year pension expense was
increased $138,290.97 as a result of these changes. Adjusted pension costs were $558,820.50 (35.7%) more
than the previous year.
CITY OF CAPE GIRARDEAU, MISSOURI
11
Expenses from governmental activities (continued)
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, 2020 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 $98,599.27 as a result of these changes. In the previous year retiree’s health and dental costs
included in the governmental activities were decreased by $166,998.82 as a result of reporting under GASB 75.
Adjusted OPEB costs were $70,186.31 (18.5%) more than the previous year.
Annual cost of the City’s employee health and dental plan and it workmen’s compensation plan reflects actual
claims incurred during the year. The cost of these plans increased (decreased) $(53,103.19) (2.2%) and
$266,215.45 (59.2%), respectively, during the current year. During the previous year the cost of these plans
increased (decreased) $604,432.75 (33.5%) and $(149,653.07) (25.0%), respectively.
• Administrative expenses totaled $3,539,308.41 (8.1% of total government activities) this year which was
$122,961.65 (3.5%) more than the previous year. Personnel costs accounted for 60.3% of the total
administrative expenses. 25.8% of the personnel costs were for benefits and the remaining was for salaries
including vacation and sick leave expense. Salary and benefit expenses increased $18,265.40 (1.1%) and
$56,757.42 (11.2%) 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
$168,809.61, $206,177.51, $44,666.25 and $9,774.01, respectively. These costs increased (decreased)
$55,696.99 (49.2%), $(13,558.05) (6.2%), $9,154.72 (25.8%) and $3,678.47 (60.3%), respectively from the
previous year. Operating expenses increased $47,938.83 (3.7%) during the current year. The current year
included $11,809.63 in costs for a City Hall concept and space needs assessment, $52,601.85 in election costs
associated with City council elections and a capital improvement sales tax election and $155,303.92 in costs
associated with the COVID-19 pandemic. The previous year included $166,373.61 in costs for a City Hall
concept and space needs assessment and $7,216.84 in election costs associated with a special City council
election. All remaining operating expenses increased $1,813.88 (0.2%) during the current year.
• Development services expenses totaled $7,071,293.71 (16.1% of total government activities) this year which
was $210,569.84 (3.1%) more than the previous year. Personnel costs accounted for 36.4% of the total
development services expenses. 28.3% of the personnel costs were for benefits and the remaining was for
salaries including vacation and sick leave expense. Salary expenses decreased $54,906.53 (2.9%) during the
current year. Benefit expenses increased $50,281.68 (7.4%). 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 $185,094.81, $278,849.93, $63,377.78 and $70,470.83, respectively. These costs increased
(decreased) $41,186.65 (28.6%), $(15,995.01) (5.4%), $9,883.77 (18.5%) and $22,292.19 (46.3%), respectively
over the previous year. Operating expenses increased $215,194.69 (5.0%) during the current year.
The current year included $128,935.00 in costs for professional services to cover a vacant city engineer
position, $139,823.37 in advertising costs associated with an air services grant at the City’s airport, $376,865.19
in sales tax rebate payments associated with several economic development agreements, and $149,040.09 in tax
increment payments associated with development agreements within tax increment financing districts. The
previous year included expenditures of $10,449.00, $88,436.32, $325,831.37, and $52,598.69 for these items,
respectively. The current year also included $238,183.38 in costs associated with a grant funded terminal area
master plan at the City’s airport. No costs were incurred for this project in the previous year. The previous year
included $373,332.85 in costs associated with an air show sponsored by the City. The City did not sponsor an
air show this year. Remaining operating expenses, excluding the above, increased $32,995.89 (1.0%) during the
current year.
CITY OF CAPE GIRARDEAU, MISSOURI
12
Expenses from governmental activities (continued)
• Parks and recreation expenses totaled $6,166,241.21 (14.1% of total government activities) this year which was
$59,059.53 (1.0%) more than the previous year. Personnel costs accounted for 53.1% of the total parks and
recreation expenses. 26.2% of the personnel costs were for benefits and the remaining was for salaries including
vacation and sick leave expense. Salary expenses decreased $45,216.57 (1.8%) during the current year. Benefit
expenses increased $119,274.47 (16.1%). 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
$179,274.68, $298,979.55, $66,395.77 and $99,672.28, respectively. These costs increased (decreased)
$77,156.77 (75.6%), $(11,959.94) (3.8%), $10,354.43 (18.5%) and $36,744.10 (58.4%), respectively over the
previous year. Operating expenses decreased $14,998.37 (0.5%) during the current year.
Total operating expenses at Cape Splash declined by $78,110.97 (34.0%) during the current year due to
COVID-19 impacts. The current year also included $49,998.50 in major repairs at the Central pool. The
following are other significant operating increases (decreases) over the previous year:
Special events costs (COVID related) $17,350.26 (25.6%) decrease
Fleet maintenance costs $21,389.69 (18.9%) increase
Depreciation $32,246.21 (2.3%) increase
Remaining operating expenses, excluding the above, decreased $23,171.54 (2.1%) during the current year.
• Public safety expenses totaled $17,693,029.16 (40.4% of total government activities) this year which was
$1,048,723.71 (6.3%) more than the previous year. Personnel costs accounted for 77.6% of the total public
safety 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 increased $469,027.59 (5.3%) and $602,654.23
(16.1%) during the current year. Full-time, part-time, and overtime salaries increased (decreased) $464,545.21
(6.0%), $26,860.83 (19.5%), and $(22,378.45) (2.4%), respectively, 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 $1,511,037.33, $1,409,889.29, $238,420.79 and $473,851.34,
respectively. These costs increased (decreased) $362,262.03 (31.5%), $(837.77) (0.1%), $37,181.55 (18.5%)
and $181,219.91 (61.9%), respectively over the previous year. Operating expenses decreased $22,958.11
(0.6%) during the current year.
The 2019 – 2020 budget authorized 4 new jailer and 2 new communicator positions and eliminated a records
clerk position. A contract with St. Francis Hospital provided for 5 additional police officers during the year. The
contract will reimburse the City for 92% of police officers personnel costs.
The previous year included expenditures for the following:
Consulting services for radio interoperability project $ 25,289.60
Claims against the City $ 36,515.49
Nothing was spent on these items during the current year.
The following are other significant operating increases (decreases) over the previous year:
Depreciation $143,480.54 (10.0%) increase
Fleet maintenance costs $19,318.73 (5.3%) decrease
Protective equipment $71,890.52 (284.4%) increase
Small equipment $57,893.52 (34.2%) decrease
Vehicle gasoline $42,619.63 (17.7%) decrease
Grant funded operating expenses (COVID-19
Impacted) $91,512.30 (42.5%) decrease
Remaining operating expenses, excluding the above, increased $34,820.10 (2.3%) during the current year.
CITY OF CAPE GIRARDEAU, MISSOURI
13
Expenses from governmental activities (continued)
• Public works expenses totaled $8,198,212.19 (18.7% of total government activities) this year which was
$6,203.09 (0.1%) more than the previous year. Personnel costs accounted for 14.3% of the total public works
expenses. 34.4% of the personnel costs were for benefits and the remaining was for salaries including vacation
and sick leave expense. Salary expenses decreased $23,782.99 (3.0%) during the current year. Benefit expenses
increased $35,775.33 (9.7%) 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 $80,493.10, $163,560.94, $37,196.72 and $62,277.24, respectively. These costs increased
(decreased) $22,518.06 (38.8%), ($10,752.42) (6.2%), $3,611.84 (10.8%) and $22,280.78 (55.7%), respectively
over the previous year. Operating expenses decreased $5,789.25 (0.1%) during the current year.
In the previous year the City spent $212,818.08 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 $83.64 related to this project. During the current year the City spent $101,742.65
for snow and ice removal supplies. In the previous year nothing was spent for these supplies.
The following are other significant operating increases (decreases) over the previous year:
Internal equipment lease $ 27,311.95 (14.7%) increase
Costs of damage to City property $ 70,646.37 (84.5%) decrease
Depreciation $164,942.62 (3.0%) increase
Remaining operating expenses, excluding the above, decreased $16,405.66 (1.5%) during the current year.
• Capital improvements expenses totaled $82,636.91 this year which was $91,844.85 (52.9%) less than the
previous year. The current year costs represent capital projects that did no t 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 $1,035,345.66 this year which was $44,572.50 (4.5%) more 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.
- 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000
Administrative
Development Serv
Parks & Recreation
Public Safety
Public Works
Water
Sewer
Solid Waste
Golf Course
Indoor Sports Complex
Sporting Complexes Expense
Revenue
CITY OF CAPE GIRARDEAU, MISSOURI
14
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 (54.8%),
other taxes (23.1%) and charges for services
(10.1%).
The City’s general sales tax represents 36.5% of
the total sales tax revenue and 46.1% of the total
general fund revenues. The remaining sales
taxes are for parks, storm water, transportation,
sewer, water, new city hall, airport improvement
and public safety projects.
The general fund accounts for 49.6% and 54.4%
of the other tax and service charge revenue,
respectively. This represents 26.4% and 12.7%
of the total general fund revenues, respectively.
Business-type activities
During the current year business-type activities
increased the net position of the City by
$3,434,945.92. During the previous year these
activities increased the City’s net position by
$7,183,751.48. Business-type activities before
transfers and special items decreased the City’s net
position by $3,961,378.02 during the current year.
In the previous year these activities decreased the
City’s net position by $1,836,978.89.
During the current year there were net transfers
from the governmental activities to business-type
activities of $7,396,323.94. In the previous year,
there were net transfers from governmental
activities to business- type activities of
$9,864,373.67.
During current year transfers were made for the
following:
Capital improvement sales tax -
sewer fund for bond payments $3,450,000.00
Operating subsidy from parks
and recreation foundation $ 8,381.80
Operating subsidy from general
and parks sales tax funds $ 715,213.72
Operating subsidy from CVB
fund $ 90,519.20
Capital improvement sales tax -
water for capital projects $ 299,848.33
Transfers of park / stormwater
sales tax for capital II for stormwater
operations and future projects $1,697,432.84
Net transfer of asset to or from
other government activities $1,134,928.05
During previous year transfers were made for the
following:
Capital improvement sales tax -
sewer fund for bond payments $4,850,000.00
Capital improvement sales tax -
water for capital projects $ 977,700.00
Transfers of funds used for special items
from employee benefits fund $ 147,463.50
Operating subsidy from general
and parks sales tax funds $ 749.024.09
Operating subsidy from CVB fund $ 102,960.87
Operating subsidy from parks and
recreation foundation $ 7,000.00
Net transfer of asset to or from
other government activities $3,030,225.21
The net change in assets before transfers, special
items and general revenues in the sewer, water, solid
waste, golf, indoor sports complex, and sporting
complexes operations totaled $(2,153,642.45),
$(759,601.69), $95,549.89, $(234,105.45),
$(431,116.00) and $(1,015,638.98), respectively, this
year. This compares to $(989,811.18), $73,713.04,
$37,647.28, $(183,518.72), $(441,185.16) and
$(992,847.96), respectively, in the previous year.
Other taxes
23.1%Sales taxes
54.8%
Other
3.2%
Charge for
Service
10.1%
Operating
grants
3.4%
Capital
grants
0.3%
Property
taxes
5.1%
Revenues for governmental
activities
CITY OF CAPE GIRARDEAU, MISSOURI
15
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, 2020, the City’s governmental
funds reported combined ending fund balances
of $ 45,275,448.16, an increase of $3,869,555.47
(9.3%) from the prior year. Unassigned fund
balances, which are available for spending at the
City’s discretion, account for $1,542,134.03
(3.4%) 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, 2020: (1) $1,517,848.97 is classified
as nonspendable because it is either (a) not in
spendable form or (b) legally or contractually
required to be maintained intact (2)
$34,867,829.62 is classified as restricted because
it can be spent only for specific purposes because
of restrictions by external parties, constitutional
provisions or enabling legislation 3)
$4,961,438.14 is classified as committed
because it can only be used for specific purposes
pursuant to constraints imposed by formal action
of the City Council 4) $2,386,197.40 is
classified as assigned because its expenditure is
constrained by the City’s intent to use it for specific
purposes.
The general fund is the chief operating fund of the
City. At the end of fiscal year ending June,
unassigned fund balance of the general fund was
$1,547,576.09 while total fund balance was
$5,768,589.97. 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 5.2 percent of total general fund
expenditures including transfers.
However, included in the restricted fund balance is
$3,844,442.00, which had been reserved to meet the
City Charter’s emergency reserve requirement. This
amount represents 13.0 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 $391,300.87 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 $385.726.48.
Differences between the amounts reflected in the two
statements can be found in the Notes to Budgetary
Comparison Schedules found on pages 87 - 90.
The original adopted general fund budget for the
fiscal year ending June 30, 2020 had expenditures
exceeding revenues by $141,180.00. The actual
general fund results decreased fund balances by
$385,726.48. Significant deviations from this budget
are detailed below:
o Sales tax revenue was $2,200.86 (0.02%)
less than the previous year, which was
$472,742.62 (4.3%) less than projected for the
adopted budget. The adopted budget projected
revenues that were 3.4% above the actual fiscal
year ending June 30, 2018 revenues. Actual
revenues declined 1.0% during the previous year.
o Franchise tax revenue was $225,477.70
(4.8%) less than projected for the adopted
budget. Franchise taxes from electric utilities,
natural gas utilities, telecommunications, cable
TV and the City’s water and sewer service fell
short of their budgets by $22,211.19 (0.9%),
$55,216.48 (8.7%), $74,030.29 (26.3%),
$17,596.15 (4.2%) and $56,423.59 (7.8%),
respectively.
Capital
grants
2.3%Charge
for
Service
94.6%Other
3.2%
Revenues for business-type activities
CITY OF CAPE GIRARDEAU, MISSOURI
16
o During the current year Ameren paid
$212,037.24 (6.3%) less than the previous
year. Payments received on electricity sales
and natural gas sales decreased $160,145.20
(5.8%) and $51,892.04 (8.2%), respectively,
during the current year. Average monthly
electric rates were about the same during the
current year when compared to the previous
year. Average monthly natural gas rates
were about 5.4% lower 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, 2018 and rates that
were in effect on February 1, 2019.
o During the current year the City
received payments in lieu of gross receipt
franchise taxes totaling $663,576.41 from its
water and sewer funds. This was $36,866.63
(5.3%) less 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, 2019 and 2% water rate increases.
Water rate increases of 2% were effective
July 1, 2019.
o Franchise tax paid during the current
year by the City’s telecommunication
service providers decreased $51,432.81
(19.8%) from the previous year. The amount
of projected franchise tax used in the current
year’s budget was based on revenues from
the year ending June 30, 2018 adjusted for
merger activity in fiscal year ending June
30, 2019.
o Franchise tax paid during the current
year by the City’s cable TV service provider
decreased $8,251.04 (2.0%) from the
previous year. The amount of projected
franchise tax used in the current year’s
budget was 2.2% more than actual revenue
from the year ending June 30, 2018.
o Property tax revenue increased
$160,380.70 (7.9%) over the previous year
and was $94,714.75 (5.1%) more than the
projected budget. Included in this increase
were payments in lieu of taxes from
properties included in two tax increment
financing districts (TIF) which increased
$53,907.51 (63.1%) and exceeded their projected
budgets by $42,285.56 (43.6). The remaining
property taxes increased $106,473.19 (5.4%)
over the previous year and exceeded their
projected budgets by $52,429.19 (2.6%).
Assessed values finalized by the board of
equalization increased $12,803,182 (2.4%) and
$8,447,027 (6.6%) for real estate and personal
property, respectively. Assessed values from new
construction and new annexation totaling
$14,344,210 and $100, respectively, were
included in the real estate increase. The City’s
general tax levy rate was set 0.2% higher than
the previous year. The adopted budget for the
fiscal year ending June 30, 2020 had assumed
2.0% and 1.0% assessed value growth for real
estate and personal property, respectively and no
levy increases.
o Business license revenue decreased
$41,404.45 (3.1%) from the previous year and
was $63,563.06 (4.6%) less than the projected
budget. The adopted budget projected revenues
that were 4.8% greater than projected fiscal year
ending June 30, 2018 revenues.
Other license and permit revenue was
$4,374.23 (1.4%) more than the previous year
and was $18,944.72 (6.5%) more than the
projected budget.
Intergovernmental revenue exceeded
revenue projected for the original budget by
$379,000.59 (65.4%). This year’s
intergovernmental revenue included $18,308.03
in revenues from various public safety capital
grants, $158,288.91 for emergency shelter
grants, $94,420.38 in disaster relief payments
and $235,960.77 for CARES Act funding for
COVID-19 related operating and capital
expenditures. None of these revenues had been
projected in the current year’s budget. The
current budget projected $527,260.00 in grants
for public safety operating expenses and
$52,000 for revenue from a county business
surtax. Actual revenue was $129,690.60
(24.6%) less and $1,713.10 more than these
amounts, respectively, during the current year.
Service charges were $148,446.52 (36.0%)
more than the previous year’s revenue and were
$54,748.20 (8.9%) short of the amount
projected in the current year’s budget. Actual
court revenues, development fees, fire service
revenue, police service revenue, and other
service revenue were ($14,696.47) (25.0%),
CITY OF CAPE GIRARDEAU, MISSOURI
17
$30,322.20 (21.2%), $6,526.50 (12.7%),
$88,423.70 (39.1%) and ($2,916.17)
(7.5%) more (less), respectively, than their
current year’s budgets and increased
(declined) ($17,405.16) (22.8%),
$11,521.89 (8.9%), $14,222.10 (38.1%),
$100,631.82 (80.0%) and ($2,516.17)
(6.0%), respectively, from the previous
year’s actual. New prisoner housing fees
were implemented this year. Actual
revenue from this new revenue was
$41,992.04 during current year and fell
$162,407.96 (386.8%) short of the amount
projected for the budget.
o Fines and forfeits revenue fell short of
its budget by $198,074.33 (29.2%) and was
$201,576.08 (29.5%) less than the previous
year. The adopted budget for fiscal year
ending June 30, 2020 had assumed revenue
levels equal to the 3% above projected
revenue for fiscal year ending June 30,
2019. Traffic cases handled by the
municipal court decreased 67.2% from the
previous year.
During the current fiscal year total
expenditures were $574,996.38 (2.3%)
more than the original budget. Operating
expenditures were $184,046.12 (0.7%)
more than their original budget.
$390,950.26 was spent on capital purchases
during the current year. The original budget
included no capital expenditures.
Transfers to other funds for operating
subsidies were $273,069.53 (6.3%) less
than original budget. The current year
included $104,508.88 in transfers to cover
capital expenditures in 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 other
governmental activities on the government-wide
statements.
General Fund Budgetary Highlights
Total expenditures and transfers on the final amended
budget were $1,594,752.00 (5.5%) more than the
original adopted budget. During the current year the
City Council appropriated this additional amount
which can be summarized as follows:
Administration - $61,482.00 to outsource payroll
processing, $43,000.00 in cyber insurance costs and
$231,035.00 in operating and capital CARES Act
spending not included in the original budget.
Development Services – $160,000.00 to cover grant
funded community assistance expenditures,
$60,950.00 for redevelopment agreement payments
and $16,850.00 in additional dues for an area-wide
planning organization, not included in the original
budget.
Public Safety – The following unbudgeted costs
required additional funds - $16,117.00 to cover the
purchase of equipment funded by a police capital
grant, $29,984.00 for costs associated with fire
operating grants, $36,000.00 to purchase radios for
police officers stationed at a local hospital,
$218,700.00 to upgrade the 911 system, $19,950.00
to replace the UPS system in the City’s 911
communications area, $200,000.00 for costs
associated with the addition of new positions in both
Police and Fire departments, $22,500.00 for the
recruiting of a new Fire chief, and $10,000.00 in
additional building repair costs.
General Fund Transfer to Parks and Recreation
Fund – $460,000.00 to cover an additional
operating subsidy.
General Fund Transfer to Sports Complex Fund
– $8,184.00 to cover the cost of replacing a storm-
damaged fence.
Excess general fund revenues and unrestricted fund
balances were used to fund all appropriations that did
not have an identified funding source.
During the year departments may transfer budget
appropriations between various expense types within
their department.
CITY OF CAPE GIRARDEAU, MISSOURI
18
During the year the City Manager authorized the
transfer of $170,000.00 from the original
Administrative contingency budget to the
following departments:
Public Safety – $10,000.00 to cover unbudgeted
costs related to the installation of bunk room
cubicle doors at Fire Stations #2, #3, and #4,
$120,000.00 to cover salary costs not budgeted
and $12,075.00 to cover unbudgeted equipment
repairs and maintenance.
Administration - $3,200.00 to cover
unbudgeted costs related to the purchase of iPads
for the city council; $17,000.00 for unbudgeted
costs to run census public service
announcements; $2,500.00 for unbudgeted costs
to begin the OneCape initiative and $2,225.00 to
pay for unbudgeted legal services.
Development Services – $3,000.00 to cover
unbudgeted Mississippi River Cities membership
dues.
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, 2020
amounts to $393,075,579.19 (net of accumulated
depreciation). This investment in capital assets
includes all land, buildings and system
improvements, machinery and equipment, and
infrastructure owned by the City.
City Capital Assets
Major capital asset events during the current fiscal
year included the following:
Construction costs totaling $3,584,502.26 on
approved transportation sales tax projects were
incurred this year.
MODOT helped fund $3,315.82 of
preliminary costs for purchasing snow removal
equipment at the Airport.
Bond funds were used for the following
projects - $61,678.91 to finish the construction
of a new police station and $725,883.26 to
begin the design/build project of refurbishing
the old Common Pleas Courthouse into a new
City Hall
Funds received from the Isle of Capri were
used to purchase of new plan review software
and continue the process of installing a radio
interoperability project, $274,555.49 and
$1,407,260.24, respectively.
A parks / stormwater sales tax was used to
fund $928,691.30 in parks projects and
$661,707.97 in stormwater projects during the
current year.
Construction costs totaling $975,150.89 on
various water system projects were incurred
this year. Major water system improvements
included the installation of a new booster
pump stations, the replacement of the
automatic transfer switch and the planning fees
for rehab of several aspects at the main water
plant, various water distribution improvements
and main extensions and the continuation of
the two-inch water main replacement program.
Sewer project costs amounted to $947,277.79
in capital expenditures during the current year.
Projects included floodwall pump station
improvements, various sanitary sewer projects,
inflow and infiltration program improvements,
and additional costs to improve the wastewater
treatment plant.
Other equipment purchased totaled
$2,850,455.64.
Motor fuel funds in the amount of $2,477.56
were used for our portion of preliminary costs
for a new diamond diverging interchange that
will be constructed at mile marker 99 on
Interstate 55.
2.9%
61.5%
34.2%
1.4%
Land
Buildings/Equipmen
t
Infrastructure
Construction in
Progress
CITY OF CAPE GIRARDEAU, MISSOURI
19
Infrastructure additions and improvements
totaling $621,090.93 were contributed by
developers. These included new streets,
sidewalks, sanitary and storm sewers,
water lines and street lighting.
Long-term debt.
At the end of the fiscal year, the City of Cape
Girardeau had total debt outstanding of
$105,120,765.37. Bonded debt outstanding
totaling $66,487,138.10 is secured by revenues
of the sewer and water funds and capital
improvement sales taxes. The repayment of the
remaining debt is subject to annual
appropriations.
The City’s total long-term debt decreased by
$5,466,875.07 (4.9%) during the current fiscal
year as a result of $11,229,508.50 in new debt,
the early payoff of $9,285,000.00 in water
revenue bonds and $7,411,383.57 in
amortization and regularly scheduled principal
payments.
10,000.00 was spent to improve the mural wall
lighting while $6,000.00 was spent on
installing new shelters and a playground at
Capaha Park.
Additional information about the City’s capital assets
can be found in note D to the financial statements.
During the year $1,835,000.00 in new debt was
issued to fund a new City Hall project. The debt
service on the new debt will be repaid from a new
capital improvement sales tax which replaced an
expiring capital improvement sales tax which had
previously supported the construction of the City’s
sewer plant.
Additionally, $9,394,508.50 in water revenue bonds
were issued during the year to fund the early
retirement of $9,285,000.00 in water
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
2020 2019 2020 2019 2020 2019
Notes payable 2,848,071.35
3,238,521.21
-
- 2,848,071.35 3,238,521.21
Special
obligation
bonds 33,125,598.54
32,698,792.18 2,659,957.38 2,803,493.74 35,785,555.92 35,502,285.92
Revenue bonds 566,900.00
617,000.00 65,920,238.10
71,229,833.31 66,487,138.10 71,846,833.31
36,540,569.89
36,554,313.39
68,580,195.48 74,033,327.05
105,120,765.37
110,587,640.44
City of Cape Girardeau's Capital Assets
(net of depreciation)
Governmental Business-type
Activity Activities Total
2020 2019 2020 2019 2020 2019
Land 9,407,603.71 9,628,796.09 1,985,017.54 1,985,017.54 11,392,621.25 11,613,813.63
Buildings and
system
improvements 33,751,772.98 34,992,292.39 15,480,406.02 16,069,324.89 49,232,179.00 51,061,617.28
Improvements
other than
buildings 19,624,441.61 20,252,232.56 154,047,615.42 155,688,259.27 173,672,057.03 175,940,491.83
Equipment 10,397,422.81 10,398,445.88 8,202,722.92 7,368,760.55 18,600,145.73 17,767,206.43
Infrastructure 134,479,704.81 136,497,611.77 - - 134,479,704.81 136,497,611.77
Construction
in progress 4,740,605.66 3,161,699.93 958,265.71 2,124,186.43 5,698,871.37 5,285,886.36
Total 212,401,551.58 214,931,078.62 180,674,027.61 183,235,548.68 393,075,579.19 398,166,627.30
CITY OF CAPE GIRARDEAU, MISSOURI
20
Economic Factors and the Next Year’s Budget
Commercial development continued to be strong
during the year while residential development
slowed significantly. Values of commercial
permits issued during the year were 30.0%
higher than the previous year. Values of
residential permits issued during the year were
65.2% lower than the previous year.
Commercial and residential permits valued at
$68.5 million and $26.7 million were issued this
year. Commercial and residential permits valued
at $52.7 million and $76.7 million were issued in
the previous year.
Local employment continues to be stronger than
national employment. The City has recovered
from most, but not all, of the negative impact of
COVID-19 on local employment. The Cape
Girardeau County unadjusted unemployment rate
was only 3.4% in October 2020. Statewide and
national unadjusted unemployment rates were
3.8% and 6.6%, respectively, for this month. The
unadjusted unemployment rates were 2.5%,
2.5% and 3.3% for the county, state, and nation,
respectively, for the previous October. City
construction projects and private development
provide significant support to local construction
employment.
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
decreased 0.02% while inflation grew at 1.56 %.
In the previous year sales tax revenue from the
general sales tax decreased 1.05% while inflation
grew at 2.07 %.
The current year’s sales tax revenue was
impacted by COVID-19. Sales tax revenue
declined 5.9% during the last quarter of current
year from the same quarter in the previous year.
The City’s hotel / motel gross receipt tax
decreased 6.9% and restaurant gross receipt tax
increased 3.1% during the current year. In the
previous year they decreased 2.2% and increased
3.2%, respectively.
The current year’s hotel / motel and restaurant
gross receipt tax revenues were impacted by
COVID-19. These revenues declined 45.1% and
15.7%, respectively, during the last quarter of
current year from the same quarter in the
previous year.
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 2017 the City’s share of the local
retail market has improved modestly.
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
modestly. The current fiscal year’s share may have
been impacted by COVID-19 which may have caused
regional customers to shop at home for the last
quarter of the year.
Local Economic Development.
In the previous 15 years 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.
SALES TAX COMPARISON
FY17 FY18 FY19 FY20
Cape Girardeau 44.3% 42.5% 45.0% 44.7%
Carbondale 25.0% 25.6% 24.1% 23.3%
Jackson
9.8%
10.2%
9.8%
10.1%
Perryville 7.5% 8.1% 7.7% 7.8%
Sikeston 13.4% 13.6% 13.4% 14.1%
100.0% 100.0% 100.0% 100.0%
CITY OF CAPE GIRARDEAU, MISSOURI
21
Payments made by the City pursuant to these
agreements totaled $642,568 during the current
year. Payments totaling $5,463,711 have been
made since the beginning of these agreements.
During the year the City spent $66,978 in
support of Cape Girardeau Area Magnet, as a
result of their membership in that organization.
This organization actively solicits business,
industry and commerce for the greater Cape
Girardeau area which includes neighboring cities
Jackson and Scott City and all of Cape Girardeau
County.
The City is continuing to market its 247.43 acre
business park site purchased in February, 2013
from the Southeast Missouri University
Foundation and located along I-55 around the
LaSalle interchange. The land will be used for
future business development and is best suited
for distribution centers, light manufacturing,
technology-related businesses and retail
development.
Revenue Limitations
The state Hancock Amendment requires the City
obtain simple majority voter approval to increase
any permit or license fee that is not based on
actual costs to the user and strictly limits the
City’s ability to increase its real estate and
personal property tax levies to support its general
services such as police and fire protection. The
City Charter requires voter approval to increase
sewer, water, and solid waste fees by more than
5% in any year. All other user fees can be
adjusted to cover actual costs.
Budget for fiscal year ending June 30, 2021 and
financial condition
The adopted general fund budget for the fiscal
year ending June 30, 2021, was projected to
produce a $141,180 deficit and included a 1.0%
wage increase effective July 1, 2020. Projected
revenues used in preparing the budget were
based on conservative revenue assumptions that
assumed no negative impact from the COVID-19
pandemic.
The approved general fund budget projects
decreasing the emergency reserved fund balance
by $6,480 to it legally required amount of
$3,729,106.
Although the City’s current financial position has
deteriorated over the past five years it still has more
than adequate fund balance to cover existing claims
and potential emergencies. The City’s general fund
ended the current year with $1,547,576.09 in
unassigned fund balances and $3,844,442.00 in fund
balances restricted for emergencies. Five years ago
these balances were $2,731,862.99 and
$3,375,657.00, respectively.
Its financial condition or its ability to provide enough
reoccurring revenues to meet its reoccurring needs
has deteriorated over the past five years. Funding of
equipment for the general and airport funds,
excluding police, fire is still not at desired levels.
Projections included in the 2020 – 2021 adopted
budget show unassigned balances will disappear by
June 30, 2024 with current spending patterns and
revenue sources
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 $ 47,672,385.04 $ 16,065,651.87 $ 63,738,036.91
Cash and cash equivalents 71,492.62 - 71,492.62
Investments 352,748.05 - 352,748.05
Taxes receivable 3,502,553.53 - 3,502,553.53
Utility charges receivable - 2,286,041.42 2,286,041.42
Special Assessments receivable 349,316.18 25,619.78 374,935.96
Interest receivable 268.95 278.86 547.81
Other receivables 1,002,584.10 90,441.70 1,093,025.80
Motor fuel receivable 127,206.89 - 127,206.89
Grants receivable 872,532.87 10,951.37 883,484.24
Inventory 235,278.14 760,862.79 996,140.93
Prepaid items 431,410.55 56,682.08 488,092.63
Internal balances 591,135.40 (591,135.40) -
Total current assets 55,208,912.32 18,705,394.47 73,914,306.79
Noncurrent assets:
Restricted cash and cash equivalents - 5,954,399.88 5,954,399.88
Net pension assets 1,581,371.95 545,467.49 2,126,839.44
Land 9,407,603.71 1,985,017.54 11,392,621.25
Buildings 33,751,772.98 15,480,406.02 49,232,179.00
Land Improvements 19,624,441.61 154,047,615.42 173,672,057.03
Equipment 10,397,422.81 8,202,722.92 18,600,145.73
Infrastructure 134,479,704.81 - 134,479,704.81
Construction in process 4,740,605.66 958,265.71 5,698,871.37
Total noncurrent assets 213,982,923.53 187,173,894.98 401,156,818.51
Total assets 269,191,835.85 205,879,289.45 475,071,125.30
Deferred outflows of resources:
Deferred outflow from pension plan 4,626,786.91 489,571.42 5,116,358.33
Deferred outflow from retiree health plan 903,929.20 156,545.80 1,060,475.00
Total deferred outflows of resources 5,530,716.11 646,117.22 6,176,833.33
See Accompanying Notes to Basic Financial Statements.
Primary Government
City of Cape Girardeau
Statement of Net Position
June 30, 2020
Governmental
Activities
Business-type
Activities Total
LIABILITIES
Current liabilities:
Accounts Payable 1,889,724.26 892,362.85 2,782,087.11
Salaries and benefits payable 1,155,551.54 222,288.41 1,377,839.95
Interest payable 60,874.02 438,248.18 499,122.20
Other liabilities 575,113.85 981,251.71 1,556,365.56
Estimated claims 777,000.00 - 777,000.00
Due to other governments 1,206.64 70,389.16 71,595.80
Unearned revenues 140,401.56 102,957.13 243,358.69
Total current liabilities 4,599,871.87 2,707,497.44 7,307,369.31
Noncurrent liabilities:
Estimated landfill post closure costs - 11,000.00 11,000.00
Notes payable 2,848,071.35 - 2,848,071.35
Revenue bonds payable 566,900.00 65,920,238.10 66,487,138.10
Special obligation bonds payable 33,125,598.54 2,659,957.38 35,785,555.92
Compensated absences payable 1,501,954.03 151,072.27 1,653,026.30
Net OPEB obligation 10,379,192.81 845,706.19 11,224,899.00
Net pension liability 27,209.29 9,690.47 36,899.76
Total noncurrent liabilities 48,448,926.02 69,597,664.41 118,046,590.43
Total liabilities 53,048,797.89 72,305,161.85 125,353,959.74
Deferred inflows of resources:
Deferred inflow from pension plan 774,321.71 147,841.34 922,163.05
Deferred inflow from retiree health plan 950,852.86 133,043.14 1,083,896.00
Total deferred inflows of resources 1,725,174.57 280,884.48 2,006,059.05
NET POSITION
Net investment in capital assets 176,947,600.59 110,855,797.19 287,803,397.78
Restricted for depreciation and replacement - 150,000.00 150,000.00
Restricted for emergency fund 5,063,192.00 3,599,913.00 8,663,105.00
Restricted for mausoleum 102,980.96 - 102,980.96
Unrestricted 37,834,805.95 19,333,650.15 57,168,456.10
Total net position $ 219,948,579.50 $ 133,939,360.34 $ 353,887,939.84
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Net Position
June 30, 2020
Primary Government
Functions/Programs Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Primary government:
Governmental activities:
Interest and other charges $ 1,035,345.66 $ - $ - $ - $ (1,035,345.66) $ - $ (1,035,345.66)
Development Services 7,071,293.71 1,514,946.95 1,177,307.14 2,984.00 (4,376,055.62) - (4,376,055.62)
Public Safety 17,693,029.16 340,043.52 484,801.93 19,895.53 (16,848,288.18) - (16,848,288.18)
Public Works 8,198,212.19 22,255.62 - 152,276.43 (8,023,680.14) - (8,023,680.14)
Parks and Recreation 6,166,241.21 1,508,804.82 87,437.19 - (4,569,999.20) - (4,569,999.20)
Capital Improvements 82,636.91 - - - (82,636.91) - (82,636.91)
Administrative 3,539,308.41 1,861,742.87 36.00 - (1,677,529.54) - (1,677,529.54)
Total governmental activities 43,786,067.25 5,247,793.78 1,749,582.26 175,155.96 (36,613,535.25) - (36,613,535.25)
Business-type activities:
Golf Course Fund 720,205.86 486,100.41 - - - (234,105.45) (234,105.45)
Indoor Sports Complex 989,349.51 554,033.51 4,200.00 - - (431,116.00) (431,116.00)
Sewer Fund 9,541,326.88 7,110,531.11 68,404.81 208,748.51 - (2,153,642.45) (2,153,642.45)
Solid Waste Fund 4,727,806.71 4,782,011.02 41,345.58 - - 95,549.89 95,549.89
Sporting Complexes Fund 1,346,108.13 326,219.15 4,250.00 - - (1,015,638.98) (1,015,638.98)
Water Fund 7,943,673.20 6,892,217.53 16,535.31 275,318.67 - (759,601.69) (759,601.69)
Total business-type activities 25,268,470.29 20,151,112.73 134,735.70 484,067.18 - (4,498,554.68) (4,498,554.68)
Total primary government $ 69,054,537.54 $ 25,398,906.51 $ 1,884,317.96 $ 659,223.14 (36,613,535.25) (4,498,554.68) (41,112,089.93)
2,655,216.95 - 2,655,216.95
28,463,968.69 - 28,463,968.69
4,440,341.30 - 4,440,341.30
1,490,308.96 - 1,490,308.96
2,260,435.25 - 2,260,435.25
1,315,436.94 - 1,315,436.94
56,545.65 - 56,545.65
2,430,457.72 - 2,430,457.72
383,043.95 - 383,043.95
1,497,927.03 524,651.66 2,022,578.69
(228,796.34) 12,525.00 (216,271.34)
(7,396,323.94) 7,396,323.94 -
37,368,562.16 7,933,500.60 45,302,062.76
755,026.91 3,434,945.92 4,189,972.83
219,172,477.54 130,505,325.70 349,677,803.24
Prior period adjustment 21,075.05 (911.28) 20,163.77
$ 219,948,579.50 $ 133,939,360.34 $ 353,887,939.84
Net position - beginning
Net position - ending
See Accompanying Notes to Basic Financial Statements.
Unrestricted investment earnings
Gain or Loss on sale of assets
Special items:
Transfers
Total general revenues, special items, and transfers
Change in net position
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, 2020
FUND FINANCIAL STATEMENTS
General Fund Airport Fund
Parks and
Recreation Fund
Casino Revenue
Fund
Transportation
Sales Tax V
Total Nonmajor
Funds
Total
Governmental
Funds
ASSETS
Current assets:
Cash and cash equivalents $ 13,315.00 $ - $ - $ - $ - $ 58,177.62 $ 71,492.62
Pooled cash and investments 5,053,042.12 53,638.34 1,181,424.35 4,752,057.32 12,453,162.67 18,677,304.31 42,170,629.11
Receivables-
Real estate taxes, net 207,791.37 - - - - 39,098.66 246,890.03
Property taxes, net 32,073.90 - - - - 6,009.28 38,083.18
Sales tax 945,020.61 - - - 463,925.82 1,176,821.79 2,585,768.22
Franchise taxes 431,802.82 - - - - - 431,802.82
Hotel & motel tax - - - - - 62,059.09 62,059.09
Restaurant tax - - - - - 137,950.19 137,950.19
Special assessments 289,939.78 - - - - 59,376.40 349,316.18
Other 404,841.71 120,858.99 25,447.85 217,658.62 - 45,635.14 814,442.31
Motor fuel tax - - - - - 73,067.19 73,067.19
Vehicle license fees - - - - - 16,303.84 16,303.84
Motor vehicle sales tax - - - - - 37,835.86 37,835.86
Grants 96,795.73 763,455.08 - - - 12,055.00 872,305.81
Other funds 535,307.19 - - - - - 535,307.19
Inventory 222.52 23,015.89 17,194.17 - - 14,304.91 54,737.49
Prepaid items 162,769.24 14,803.27 20,021.76 - - 71,306.50 268,900.77
Total Current assets 8,172,921.99 975,771.57 1,244,088.13 4,969,715.94 12,917,088.49 20,487,305.78 48,766,891.90
Noncurrent assets:
Advances to other funds - - - 1,246,848.20 - - 1,246,848.20
Total Noncurrent assets - - - 1,246,848.20 - - 1,246,848.20
Total assets $ 8,172,921.99 $ 975,771.57 $ 1,244,088.13 $ 6,216,564.14 $ 12,917,088.49 $ 20,487,305.78 $ 50,013,740.10
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Balance Sheet
Governmental Funds
June 30, 2020
General Fund Airport Fund
Parks and
Recreation Fund
Casino Revenue
Fund
Transportation
Sales Tax V
Total Nonmajor
Funds
Total
Governmental
Funds
LIABILITIES
Current liabilities:
Accounts payable $ 472,675.20 $ 116,077.25 $ 109,005.15 $ 8,277.80 $ 159,928.37 $ 922,011.33 $ 1,787,975.10
Salaries and benefits payable 879,703.52 31,153.00 151,137.20 - - 6,157.54 1,068,151.26
Other liabilities 502,220.96 53,090.97 19,801.92 - - - 575,113.85
Due to other governments - - - - - 1,206.64 1,206.64
Payable to other funds - 506,412.84 - - - 28,894.35 535,307.19
Unearned revenues 22,960.60 1,897.28 115,543.68 - - - 140,401.56
Deferred revenues 526,771.74 - - - - 103,364.60 630,136.34
Total Current liabilities 2,404,332.02 708,631.34 395,487.95 8,277.80 159,928.37 1,061,634.46 4,738,291.94
Total liabilities 2,404,332.02 708,631.34 395,487.95 8,277.80 159,928.37 1,061,634.46 4,738,291.94
FUND BALANCES (DEFICITS)
Nonspendable 164,869.24 14,803.27 20,021.76 1,246,848.20 - 71,306.50 1,517,848.97
Restricted 4,030,784.63 206,929.00 414,226.00 - 12,757,160.12 17,458,729.87 34,867,829.62
Committed - - - 4,961,438.14 - - 4,961,438.14
Assigned 25,360.01 45,407.96 414,352.42 - - 1,901,077.01 2,386,197.40
Unassigned 1,547,576.09 - - - - (5,442.06) 1,542,134.03
Total fund balances (deficits) 5,768,589.97 267,140.23 848,600.18 6,208,286.34 12,757,160.12 19,425,671.32 45,275,448.16
Total liabilities and fund balances (deficits) $ 8,172,921.99 $ 975,771.57 $ 1,244,088.13 $ 6,216,564.14 $ 12,917,088.49 $ 20,487,305.78 $ 50,013,740.10
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Balance Sheet
Governmental Funds
June 30, 2020
$45,275,448.16
210,570,602.14
6,319,857.79
5,299,798.43
(110,778.58)
(36,540,569.89)
(10,075,883.97)
(1,420,030.92)
630,136.34
$219,948,579.50
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, 2020
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activiites are not financial resources and, therefore, are not reported in the
governental funds.
Internal service funds are used by management to charge the costs of management information systems, fleet
management, employee fringe benefits, workmen's compensation, and equipment replacement to the individual funds.
Their assets and liabilities are included in governmental activities in the statement of net position.
Assets, liabilities, and deferred inflows and outflows related to the City's employee retirement plan are reported on a net
basis in government activities of the statement of net postion but are not included in the governmental funds because
they do require the use of or provide current financial resources.
Accrued expenses which are included in governmental activities in the statement of net position are not included in
governmental fund because they are not payable from current financial resources.
Long-term debts are included in the governmental activities in the statement of net position but not in governmental
funds because they are not due and payable in the current period.
Non-current Net OPEB obiligation included in governmental activities of the statement of net position for employee post-
retirement healthcare benefits is not included in governmental funds because it does not required the use of current
financial resoruces..
Non-current compensated absences payable included in governmental activities of the statement of net position for
earned vacation and termination pay do not require the use of current financial resources and are not included in
governmental funds.
Assets included in governmental activities of the statement of net position that are not available to pay for current-period
expenditures are offset by deferred revenues in governmental funds.
Net position of governmental activities
General Fund Airport Fund
Parks and
Recreation Fund
Casino Revenue
Fund
Transportation
Sales Tax V
Total Nonmajor
Funds
Total Governmental
Funds
REVENUES
Taxes $ 17,180,009.20 $ - $ - $ 2,142,834.91 $ 5,053,646.33 $ 15,843,812.93 $ 40,220,303.37
Licenses & permits 1,626,981.66 - - - - 3,797.00 1,630,778.66
Intergovernmental 958,260.59 965,459.08 - - 17,781.43 1,556,946.09 3,498,447.19
Charges for services 560,951.80 499,938.95 1,259,337.10 - - 106,168.40 2,426,396.25
Internal charges 1,154,321.48 - - - - - 1,154,321.48
Fines and forfeits 481,025.67 - - - - - 481,025.67
Miscellaneous 419,279.30 282,619.02 17,220.28 - - 109,787.95 828,906.55
Investment revenue 153,442.15 772.60 26,327.65 182,963.50 353,627.22 606,741.24 1,323,874.36
Special assessments 31,948.94 - - - - 4,482.67 36,431.61
Total revenues 22,566,220.79 1,748,789.65 1,302,885.03 2,325,798.41 5,425,054.98 18,231,736.28 51,600,485.14
EXPENDITURES
Current:
Administrative 3,107,210.80 - - 88,108.15 - - 3,195,318.95
Development Services 2,631,386.97 1,773,400.92 - - 262,125.68 1,316,136.59 5,983,050.16
Parks and Recreation 1,633,783.53 - 2,813,616.21 - - 106,164.30 4,553,564.04
Public Safety 15,029,901.18 - - - - 457,245.52 15,487,146.70
Public Works 2,612,695.27 - - - - 83.64 2,612,778.91
Debt service:
Administrative charges - - - - - 427.56 427.56
Issuance cost - - - - - 60,000.00 60,000.00
Interest - 21.69 - 69,550.14 - 956,197.34 1,025,769.17
Principal - - - 390,449.86 - 1,425,100.00 1,815,549.86
Capital outlay:
Administrative - - - - - - -
Capital Improvements - - - - 2,919,766.25 3,161,238.40 6,081,004.65
Development Services - 3,284.59 - - - - 3,284.59
Parks and Recreation 14,845.82 - 22,938.02 - - 250,782.75 288,566.59
Public Safety 384,015.44 - - 1,681,815.73 - 367,276.75 2,433,107.92
Total expenditures 25,413,839.01 1,776,707.20 2,836,554.23 2,229,923.88 3,181,891.93 8,100,652.85 43,539,569.10
Excess (deficiency) of revenues over expenditures (2,847,618.22) (27,917.55) (1,533,669.20) 95,874.53 2,243,163.05 10,131,083.43 8,060,916.04
OTHER FINANCING SOURCES (USES)
Transfers out (4,153,281.35) - (334,714.80) (146,680.01) - (13,976,133.02) (18,610,809.18)
Transfers in 6,438,794.95 - 1,882,666.34 - - 4,054,302.00 12,375,763.29
Compensation for damages 25,129.96 - 1,981.57 - - - 27,111.53
Asset disposition 145,673.79 - - - - 12,400.00 158,073.79
Bond proceeds - - - - - 1,835,000.00 1,835,000.00
Total other financing source (uses) 2,456,317.35 - 1,549,933.11 (146,680.01) - (8,074,431.02) (4,214,860.57)
SPECIAL ITEMS
Net change in fund balances (391,300.87) (27,917.55) 16,263.91 (50,805.48) 2,243,163.05 2,056,652.41 3,846,055.47
Fund balances - beginning 6,136,390.84 295,057.78 832,336.27 6,259,091.82 10,513,997.07 17,369,018.91 41,405,892.69
Prior period adjustments 23,500.00 - - - - - 23,500.00
Fund balances - ending $ 5,768,589.97 $ 267,140.23 $ 848,600.18 $ 6,208,286.34 $ 12,757,160.12 $ 19,425,671.32 $ 45,275,448.16
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, 2020
$3,846,055.47
Governmental funds report capital outlays as expenditures. In the statement of activities capital outlays are not
expensed, but the cost of the outlays are allocated over their estimated useful lives and reported as depreciation
expense. This is the amount by which depreciation was more or (less) than capital outlays.
(2,330,732.82)
Changes in the assets, liabilities, and deferred inflows and outflows related to the City's employee retirement plan that
occurred during the current year that do not require current financial resources are reported on the statement of activities
but not in the governmental funds.(730,167.20)
Changes in the Net OPEB obligation related to the cost of providing future post-retirement healthcare costs to the City's
employees that do not require current financial resources are reported on the statement of activities but not in
governmental funds.
98,599.27
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..(57,526.77)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in
governmental funds.10,945.36
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.(117,568.46)
Accrued expenses which are included in governmental activities in the statement of net position are not included in the
governmental fund because they are not payable from current financial resources.21,678.56
Long-term debts 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.13,743.50
$755,026.91
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, 2020
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Change in net position of governmental activities
The notes to financial statements are an integral part of this statement.
Governmental
Activities
Sewer Fund Water Fund
Solid Waste
Fund Golf Course Fund
Indoor Sports
Complex Fund
Sporting
Complexes Fund
Total Enterprise
Funds
Internal Service
Funds
ASSETS
Current assets:
Pooled cash and investments $ 5,984,854.12 $ 7,166,535.74 $ 2,199,800.60 $ 205,952.15 $ 215,765.01 $ 292,744.25 $ 16,065,651.87 $ 5,501,755.93
Investments - - - - - - - 352,748.05
Utilities charges, net 885,518.10 962,949.80 437,573.52 - - - 2,286,041.42 -
Special assessments 20,838.53 4,781.25 - - - - 25,619.78 -
Other 29,118.86 31,568.58 25,554.26 - 4,200.00 - 90,441.70 188,141.79
Receivable from other funds 1,472.00 - - - - - 1,472.00 -
Interest 278.86 - - - - - 278.86 268.95
Grants 4,633.91 1,318.55 4,498.91 - - 500.00 10,951.37 227.06
Inventory - 711,033.89 - 9,376.75 7,371.11 33,081.04 760,862.79 180,540.65
Prepaid items 25,796.55 20,350.85 7,414.60 286.50 630.08 2,203.50 56,682.08 162,509.78
Total current assets 6,952,510.93 8,898,538.66 2,674,841.89 215,615.40 227,966.20 328,528.79 19,298,001.87 6,386,192.21
Noncurrent assets:
Rest Cash and Cash Equivalents 5,954,399.88 - - - - - 5,954,399.88 -
Net pensions assets 320,446.96 31,099.60 149,828.92 43,103.59 988.42 - 545,467.49 17,726.66
Land 537,677.99 - 112,239.55 - 1,335,100.00 - 1,985,017.54 37,500.00
Buildings 8,093,163.64 356,243.98 4,928,941.51 163,674.80 12,223,149.43 1,015,897.21 26,781,070.57 53,906.45
Equipment 7,878,138.48 2,944,466.33 4,469,624.99 654,535.66 186,127.19 568,949.72 16,701,842.37 6,562,137.78
Other improvements 159,061,084.69 68,902,997.92 344,022.92 1,972,744.42 - 3,436,902.60 233,717,752.55 155,653.19
Construction in progress 596,192.04 362,073.67 - - - - 958,265.71 -
Accumulated depreciation (62,591,146.59) (28,269,725.58) (3,919,242.24) (1,551,259.73) (1,043,335.81) (2,095,211.18) (99,469,921.13) (4,978,247.98)
Total noncurrent assets 119,849,957.09 44,327,155.92 6,085,415.65 1,282,798.74 12,702,029.23 2,926,538.35 187,173,894.98 1,848,676.10
Total assets 126,802,468.02 53,225,694.58 8,760,257.54 1,498,414.14 12,929,995.43 3,255,067.14 206,471,896.85 8,234,868.31
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflow from pension plan 209,506.70 39,071.78 157,083.14 37,072.90 (146.11) 46,983.01 489,571.42 124,868.65
Deferred outflow from retiree health plan 52,843.73 7,083.60 60,764.37 15,728.18 4,968.40 15,157.52 156,545.80 51,883.26
Total deferred outflows of resources 262,350.43 46,155.38 217,847.51 52,801.08 4,822.29 62,140.53 646,117.22 176,751.91
Business-type Activities
The notes to financial statements are an integral part of this statement.
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2020
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 170,268.00 388,812.74 226,018.33 19,667.39 32,985.51 54,610.88 892,362.85 101,749.16
Salaries and benefits payable 67,226.36 10,750.98 46,987.08 23,367.92 22,644.05 51,312.02 222,288.41 37,495.72
Interest payable 431,415.68 - 6,832.50 - - - 438,248.18 -
Other liabilities 417,517.06 356,707.91 186,982.14 20,044.60 - - 981,251.71 -
Estimated claims payable - - - - - - - 777,000.00
Payable to other funds - - 1,472.00 - - - 1,472.00 -
Due to other governments 22,984.56 47,404.60 - - - - 70,389.16 -
Unearned revenues - - - 36,899.41 34,873.22 31,184.50 102,957.13 -
Current portion of long-term debt
Revenue bonds payable 4,840,000.00 525,000.00 - - - - 5,365,000.00 -
Special oblig bonds payable - - 150,000.00 - - - 150,000.00 -
Total current liabilities 5,949,411.66 1,328,676.23 618,292.05 99,979.32 90,502.78 137,107.40 8,223,969.44 916,244.88
Noncurrent liabilities:
Net OPEB Obligation 338,485.80 43,276.75 291,596.07 104,428.53 11,655.51 56,263.53 845,706.19 356,739.87
Net pensions liability - - - - - 9,690.47 9,690.47 27,209.29
Compensated absences payable 39,936.48 2,538.69 49,926.32 18,848.63 15,299.18 24,522.97 151,072.27 81,923.11
Advances from other funds - - 1,246,848.20 - - - 1,246,848.20 -
Revenue bonds payable 51,768,000.00 8,787,238.10 - - - - 60,555,238.10 -
Special oblig bonds payable - - 2,509,957.38 - - - 2,509,957.38 -
Est landfill post closure cost - - 11,000.00 - - - 11,000.00 -
Total noncurrent liabilities 52,146,422.28 8,833,053.54 4,109,327.97 123,277.16 26,954.69 90,476.97 65,329,512.61 465,872.27
Total liabilities 58,095,833.94 10,161,729.77 4,727,620.02 223,256.48 117,457.47 227,584.37 73,553,482.05 1,382,117.15
DEFERRED INFLOWS OF RESOURCES
Deferred inflow from pension plan 77,583.19 7,219.38 24,111.55 6,285.22 14,202.48 18,439.52 147,841.34 8,556.59
Deferred inflow from retiree health plan 47,894.89 6,129.39 50,111.81 13,577.68 3,625.24 11,704.13 133,043.14 45,375.89
Total deferred inflows of resources 125,478.08 13,348.77 74,223.36 19,862.90 17,827.72 30,143.65 280,884.48 53,932.48
NET POSITION
Invested in capital assets, net of related debt 56,967,110.25 34,989,038.32 2,032,374.31 1,239,695.15 12,701,040.81 2,926,538.35 110,855,797.19 1,830,949.44
Restricted for depreciation and replacement - 150,000.00 - - - - 150,000.00 -
Restricted for emergencies 1,582,833.00 977,229.00 678,409.00 89,522.00 115,091.00 156,829.00 3,599,913.00 -
Unrestricted 10,293,563.18 6,980,504.10 1,465,478.36 (21,121.31) (16,599.28) (23,887.70) 18,677,937.35 5,144,621.15
Total net position $ 68,843,506.43 $ 43,096,771.42 $ 4,176,261.67 $ 1,308,095.84 $ 12,799,532.53 $ 3,059,479.65 133,283,647.54 $ 6,975,570.59
- - - - 655,712.80 -
$ 133,939,360.34
Difference between business-type adjustments to assets and liabilities.
Net position of business-type activities
The notes to financial statements are an integral part of this statement.
City of Cape Girardeau
Statement of Net Position
Proprietary Funds
June 30, 2020
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 $ 4,639,373.42 $ 4,117,001.80 $ 2,839,256.65 $ - $ - $ - $ 11,595,631.87 $ -
Commercial charges 2,231,673.12 2,531,248.89 49,159.25 - - - 4,812,081.26 -
Transfer station charges - - 1,680,454.57 - - - 1,680,454.57 -
Other fees and charges 105,707.03 198,692.71 44,384.80 - - - 348,784.54 12,494.86
Concession revenues - - - 48,269.49 74,738.32 49,603.74 172,611.55 -
Internal charges 5,163.57 - - - - - 5,163.57 7,436,074.44
Usage fees - - - 436,789.55 479,253.19 245,615.49 1,161,658.23 1,026.56
Miscellaneous 2,382.82 23,475.39 158,187.25 1,041.37 4,242.00 190.31 189,519.14 970.77
Total operating revenues 6,984,299.96 6,870,418.79 4,771,442.52 486,100.41 558,233.51 295,409.54 19,965,904.73 7,450,566.63
OPERATING EXPENSES
Personnel services 1,755,464.60 305,462.83 1,255,135.30 379,160.84 387,198.59 599,824.03 4,682,246.19 1,067,731.73
Materials & supplies 767,668.36 1,381,854.17 200,372.64 99,762.85 121,274.48 145,814.20 2,716,746.70 564,257.62
Contractual services 909,147.69 3,142,167.99 2,164,857.78 55,659.27 105,773.64 115,142.84 6,492,749.21 5,797,623.41
General operating expenses 390,348.41 363,643.51 19,492.16 2,193.76 1,807.81 3,475.01 780,960.66 69,534.94
Special programs 20,771.96 138.00 139,569.16 909.83 32,485.82 64,930.32 258,805.09 1,590.05
Internal service expenses 167,132.71 210,530.83 325,799.38 44,856.36 10,010.00 60,568.40 818,897.68 7,989.00
Depreciation 4,350,189.96 1,988,802.32 407,268.87 131,845.87 325,219.01 344,611.99 7,547,938.02 389,195.48
Total operating expenses 8,360,723.69 7,392,599.65 4,512,495.29 714,388.78 983,769.35 1,334,366.79 23,298,343.55 7,897,922.23
Operating income (loss) (1,376,423.73) (522,180.86) 258,947.23 (228,288.37) (425,535.84) (1,038,957.25) (3,332,438.82) (447,355.60)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 68,404.81 16,535.31 41,345.58 - - 4,250.00 130,535.70 11,587.27
Investment revenue 210,328.48 248,880.23 51,330.92 5,536.10 3,706.11 4,869.82 524,651.66 174,052.67
Gain from sale of asset 2,775.00 1,100.00 7,200.00 1,450.00 - - 12,525.00 -
Compensation for damages 12,222.15 21,798.74 10,568.50 - - 30,809.61 75,399.00 61,298.75
Loss on sale of asset - - (75,941.17) - - - (75,941.17) -
Interest and other charges (1,145,268.05) (393,307.48) (99,249.09) - - - (1,637,824.62) -
Issuance costs - (147,162.50) - - - - (147,162.50) -
Total nonoperating revenues (expenses) (851,537.61) (252,155.70) (64,745.26) 6,986.10 3,706.11 39,929.43 (1,117,816.93) 246,938.69
Income (loss) before contributions and transfers (2,227,961.34) (774,336.56) 194,201.97 (221,302.27) (421,829.73) (999,027.82) (4,450,255.75) (200,416.91)
Contributed cap - connect fee 114,009.00 - - - - - 114,009.00 -
Contributed cap - developers 208,748.51 275,318.67 - - - - 484,067.18 -
Contributed cap - government 928,691.30 - - 183,450.00 8,481.59 14,305.16 1,134,928.05 -
Transfers in 5,147,432.84 301,230.13 - 75,732.84 90,519.20 646,480.88 6,261,395.89 -
Transfers out - - - - - - - (26,350.00)
Change in net position 4,170,920.31 (197,787.76) 194,201.97 37,880.57 (322,828.94) (338,241.78) 3,544,144.37 (226,766.91)
Total net position - beginning 64,672,675.34 43,295,381.24 3,982,059.70 1,270,215.27 13,122,361.47 3,397,721.43 129,740,414.45 7,202,337.50
Prior period adjustment (89.22) (822.06) - - - - (911.28) -
Total net position - ending $ 68,843,506.43 $ 43,096,771.42 $ 4,176,261.67 $ 1,308,095.84 $ 12,799,532.53 $ 3,059,479.65 $ 133,283,647.54 $ 6,975,570.59
Adjustments to reflect the consolidation of internal service fund activities related to the enterprise funds (109,198.45)
Change in net position of business-type activities 3,434,945.92
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, 2020
Government
Total Activities
Indoor Sports Sports Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complex Complexes Funds Funds
$ 6,974,322.63 $ 7,125,148.80 $ 4,672,457.66 $ 501,849.83 $ 650,325.88 $ 409,218.84 $ 20,333,323.64 $ 209,342.19
5,163.57 - 49,159.25 - - - 54,322.82 7,373,216.68
(0.00) (0.00) (0.00) - - - (0.00) 2,529.35
(1,720,707.68) (4,497,043.49) (2,371,093.13) (192,332.27) (331,395.48) (412,147.53) (9,524,719.58) (6,720,915.53)
(1,737,948.64) (298,079.59) (1,210,168.99) (361,287.87) (378,025.42) (575,544.24) (4,561,054.75) (999,240.26)
(169,688.75) (210,530.83) (325,799.38) (44,856.36) (10,610.06) (60,568.40) (822,053.78) (7,989.00)
(334,049.49) (329,526.92) - - - - (663,576.41) -
(17,911.22) (275,133.14) - - - - (293,044.36) -
Other payments (138.00) (138.00) (138.00) - - - (414.00) -
- 2,999,042.42 1,514,696.83 814,417.41 (96,626.67) (69,705.08) (639,041.33) 4,522,783.58 (143,056.57)
1,697,432.84 - - 75,732.84 90,519.20 646,480.88 2,510,165.76 -
- - - - - - - (26,350.00)
- - (12,369.09) - - - (12,369.09) -
50,992.86 9,889.11 14,142.60 - - 3,750.00 78,774.57 -
2,165.14 - - - - - 2,165.14 11,360.21
- - 14,808.31 - - - 14,808.31 -
Short-term advance from other funds - - 240.00 - - - 240.00 -
Short-term advance to other funds (240.00) - - - - - (240.00) -
Repayment of long-term advance from other funds - - (20,454.69) - - - (20,454.69) -
Insurance claims - storm damage - - 110.00 - - 30,809.61 30,919.61 -
1,750,350.84 9,889.11 (3,522.87) 75,732.84 90,519.20 681,040.49 2,604,009.61 (14,989.79)
- - - - - - - - 116,139.00 - - 183,450.00 8,481.59 14,305.16 322,375.75 -
Federal grants - - - - - - - -
State grants - - - - - - - -
(265,505.99) (254,784.95) (1,138,863.93) (183,450.00) (8,481.59) (11,247.56) (1,862,334.02) (375,811.33)
(856,532.29) (808,910.92) - - - (11,057.60) (1,676,500.81) -
(4,800,000.00) (620,000.00) (145,000.00) - - - (5,565,000.00) -
(1,208,447.48) (404,811.19) (85,718.44) - - - (1,698,977.11) -
- (9,447,565.63) - - - - (9,447,565.63) -
- 9,394,508.50 - - - - 9,394,508.50 -
Issuance cost of capital debt - (147,162.50) - - - - (147,162.50) -
- 85.00 - 1,450.00 - - 1,535.00 -
- 24,829.90 - - - - 24,829.90 -
Long-term advance for capital acquisitions - - 855,000.00 - - - 855,000.00 -
- 299,848.33 - - - - 299,848.33 -
3,450,000.00 (0.00) - - - 0.00 3,450,000.00 -
(3,564,346.76) (1,963,963.46) (514,582.37) 1,450.00 - (8,000.00) (6,049,442.59) (375,811.33)
See Accompanying Notes to Basic Financial Statements.
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
Subsidy from federal grant
Subsidy from local grant
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, 2020
Business-type Activities - Enterprise Funds
Capital contributions
Acquisition and construction of capital assets
Transfers in for payment of capital related debt
Net cash (used) by capital and related financing
activities
Cost of prepaying capital debt
Purchase of capital assets
Proceeds from transfer of capital assets
Proceeds from capital debt
Receipts from interfund services
Payments for salaries and benefits
Payments for interfund services used
Transfers from other funds
Remittance of taxes collected from customers
Proceeds from sales of capital assets
Transfers in for capital acquisitions
Subsidy from state grant
Principal paid on capital debt
Interest paid on capital debt
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Payments to suppliers
Government
Total Activities
Indoor Sports Sports Proprietary Internal Service
Sewer Water Solid Waste Golf Course Complex Complexes Funds Funds
160,852.44 187,970.84 32,131.52 3,788.56 1,834.17 2,324.12 388,901.65 124,789.42
(1,411,210.12) 251,406.68 (328,443.69) 15,655.27 (22,648.29) (36,323.28) (1,531,563.43) 409,068.27
(1,250,357.68) 439,377.52 (296,312.17) 19,443.83 (20,814.12) (33,999.16) (1,142,661.78) 533,857.69
(65,311.18) (0.00) (0.00) (0.00) (0.00) - (65,311.18) -
6,019,711.06 - - - - - 6,019,711.06 -
Prior period adjustment - - - - - - - - $ 5,954,399.88 $ (0.00) $ (0.00) $ (0.00) $ (0.00) $ (0.00) $ 5,954,399.88 $ -
$ (1,376,423.73) $ (522,180.86) $ 258,947.23 $ (228,288.37) $ (425,535.84) $ (1,038,957.25) $ (3,332,438.82) $ (447,355.60)
Depreciation expense 4,350,189.96 1,988,802.32 407,268.87 131,845.87 325,219.01 344,611.99 7,547,938.02 389,195.48
35,076.41 50,518.95 142,293.32 6,577.23 17,501.86 12,397.15 264,364.92 (63,142.84)
43,874.90 27,310.81 16,518.49 (1,328.63) 2,122.53 11,435.08 99,933.18 -
(3,230.40) (905.74) 1,875.96 3,772.45 750.16 7,464.45 9,726.88 21,359.37
Customer receivables (49,880.33) (32,367.07) (50,883.51) (80.00) (4,200.00) - (137,410.91) -
Interfund receivables - - - - - - - (70,048.98)
(295.86)
Prepaid expenses (12,613.20) (16,399.09) (4,693.30) (55.35) (370.61) (1,287.33) (35,418.88) (29,534.91)
OPEB liability (17,837.10) 2,047.91 19,813.32 9,053.97 3,017.99 9,053.97 25,150.06 25,324.21
Pension asset/liability 29,885.91 6,241.07 23,277.03 5,046.55 5,405.02 7,761.37 77,616.95 21,807.89
Inventory - 11,628.53 - (187.46) (1,565.22) (5,341.72) 4,534.13 9,634.67
Unearned revenue - - - (22,982.93) 7,950.02 13,820.96 (1,211.95) -
$ 2,999,042.42 $ 1,514,696.83 $ 814,417.41 $ (96,626.67) $ (69,705.08) $ (639,041.33) $ 4,522,783.58 $ (143,056.57)
For the Year Ended June 30, 2020
Proprietary Funds
Business-type Activities - Enterprise Funds
Net change in pooled investments
City of Cape Girardeau
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
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
Net cash provided by investing activities
Statement of Cash Flows
Agency funds
ASSETS
Pooled cash and investments $ 2,300,538.74
Cash and cash equivalents 7,708.69
Prepaid items 32,530.67
Real estate taxes 212,249.80
Property taxes 31,666.14
Grants 18,752.33
Other 84,846.62
Total assets $ 2,688,292.99
LIABILITIES
Deferred revenues $ 237,948.57
Accounts payable 63,658.06
Salaries and benefits payable 32,931.93
Other liabilities 2,353,754.43
Total liabilities $ 2,688,292.99
See Accompanying Notes to Basic Financial Statements.
City of Cape Girardeau
Statement of Fiduciary Net Position
June 30, 2020
36
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 Parks
Development Foundation (CGPDF) is also a component unit of the City. The financial statement of this
foundation is included as a special revenue fund 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 CGPDF is a not-for-profit corporation organized and existing under Chapter 355 of the Revised
Statutes of Missouri. 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 this foundation are included in the financial presentation of the City. This foundation was
established to receive donations to be used for the benefit of the City.
37
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 considered to
be available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City generally 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.
38
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 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.
39
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 the management of 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.
40
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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.
41
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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, 2020 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.
42
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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.
43
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 twenty-three 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,
2020, those costs totaled $570,400.00.
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 four retiree spouses participating in the health insurance program and five retiree
spouses participating in the dental insurance program as of June 30, 2020.
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, 2020 all infrastructures completed during the fiscal year, including
projects started in a previous year, were recorded at their historical costs.
44
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 March 6, 2021, 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, 2020, and reported at fair value, are as follows:
Deposits:
Demand Deposits $ 0.00
Interest Bearing Deposit Accounts 36,791,931.37
Total Deposits $ 36,791,931.37
Investments:
Negotiable Instruments $29,187,404.67
Total Investments $29,187,404.67
Accrued Interest Revenue $ 59,239.61
Total Pooled Deposits and Investments $66,038,575.65
As of June 30, 2020, the City had the following pooled investments:
Investments Maturities Fair Value
Negotiable Instruments 07/21/20 – 03/06/26 $29,187,404.67
Total $29,187,404.67
45
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE B - DEPOSITS AND INVESTMENTS - continued
Reconciliation of Pooled Cash and Investments to Statements:
Governmental Pooled Cash and Investments $47,672,385.04
Business-type Pooled Cash and Investments 16,065,651.87
Fiduciary Pooled Cash and Investments 2,300,538.74
Total Pooled Cash and Investments $66,038,575.65
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, 2020, and reported at fair value, are as follows:
Deposits:
Demand Deposits $ 218,437.75
Interest Bearing Deposit Accounts 5,815,163.44
Total Deposits $6,033,601.19
Investments:
U. S. Treasury Note $ 352,748.05
Total Investments $ 352,748.05
Total Non-pooled Deposits and Investments $6,386,349.24
As of June 30, 2020, the City had the following non-pooled investments
U. S. Treasury Note 12/15/20 – 12/15/20 $352,748.05
Total $352,748.05
Reconciliation of Non-pooled Deposits and Investments to Statements:
Governmental Cash and Cash Equivalents $ 71,492.62
Governmental Investments 352,748.05
Business-type Restricted Cash and Cash Equivalents 5,954,399.88
Fiduciary Cash and Cash Equivalents 7,708.69
Total Non-pooled Deposits and Investments $6,386,349.24
Custodial Credit Risk:
Deposits in financial institutions, reported as components of cash, cash equivalents, and
investments, had a bank balance of $72,502,533.75 at June 30, 2020, 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.
46
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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, 2020
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 s ecured 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, 2020, the City
had no concentration of credit risk.
47
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE C - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August
30, 2019, 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 $ .3044/100.00 assessed valuation
Public Health .0570/100.00 assessed valuation
Special Business District .7076/100.00 assessed valuation
#2 (Ad Valorem)
Property tax receivable balances as of June 30, 2020 are as follows:
Special
General Business Public
Revenue District, Health Total
Current property tax $ 83,463.19 $ 201.67 $ 15,607.82 $ 99,272.68
Delinquent property tax 164,403.01 - 30,796.34 195,199.35
Reserve for doubtful
Property taxes (8,000.93) - (1,497.89) ( 9,498.82)
Net property tax receivable
$239,865.27 $ 201.67 $ 44,906.27 $284,973.21
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, 2020 is as follows:
Balance Current Year Balance
July 1, 2019 Additions Deductions Depreciation* June 30, 2020**
Land
$ 9,628,796.09 $ - $ 221,192.38 $ - $ 9,407,603.71
Buildings 34,992,292.39 537,174.68 137,868.96 1,639,825.13 33,751,772.98
Land improvements 20,252,232.56 445,602.29 7,840.00 1,065,553.24 19,624,441.61
Equipment 10,398,445.88 1,909,592.90 133,258.26 1,777,357.71 10,397,422.81
Infrastructure 136,497,611.77 3,510,941.10 - 5,528,848.06 134,479,704.81
Construction in progress 3,161,699.93 6,013,639.81 4,434,734.08 - 4,740,605.66
Total capital assets $214,931,078.62 $12,416,950.78 $4,934,893.68 $10,011,584.14 $ 212,401,551.58
* Includes depreciation expenses from the internal service funds’ assets which are included in the expenses of the
governmental activities and business activities on the government-wide Statement of Activities as internal charges.
**Includes the internal service funds’ assets which are included as part of the governmental activities assets included on
the government-wide Statement of Net Position.
48
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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, 2020:
Balance Current Year Balance
July 1, 2019 Additions Deductions Depreciation June 30, 2020
Land $ 1,985,017.54 $ - $ - $ - $ 1,985,017.54
Buildings 16,069,324.89 5,210.29 - (594,129.16) 15,480,406.02
Improvements other
than buildings 155,688,259.27 4,385,104.91 - (6,025,748.76) 154,047,615.42
Equipment 7,368,760.55 1,976,878.60 (214,856.13) (928,060.10) 8,202,722.92
Construction in progress 2,124,186.43 2,111,209.42 (3,277,130.14) - 958,265.71
Total capital assets $183,235,548.68 $ 8,478,403.22 $(3,491,986.27) $ (7,547,938.02) $ 180,674,027.61
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrative $ 28,833.66
Development Services 979,805.19
Parks and Recreation 1,442,634.89
Public Safety 1,574,121.06
Public Works 5,596,993.86
Total $ 9,622,388.66
Business-Type Activities:
Golf Course $ 131,845.87
Sewer 4,350,189.96
Sporting Complexes 344,611.99
Sportsplex 325,219.01
Solid Waste 407,268.87
Water 1,988,802.32
Total $ 7,547,938.02
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, 2020:
Governmental
Activities
Other
Debt*
Revenue
Bonds
Total
Debt payable June 30, 2019 $35,937,313.39 $ 617,000.00 $36,554,313.39
Discount/Premium
Amortization
(33,193.64) - (33,193.64)
Issued 1,835,000.00 - 1,835,000.00
Retired (1,765,449.86) (50,100.00) (1,815,549.86)
Debt payable June 30, 2020 $35,973,669.89 $ 566,900.00 $36,540,569.89
*Other Debt includes Notes Payable and Special Obligation Bonds.
49
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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, 2020:
Business-Type
Activities
Other
Debt*
Revenue
Bonds
Total
Debt payable July 1, 2019 $2,803,493.74 $ 71,229,833.31 $74,033,327.05
Discount/Premium
Amortization 1,463.64 896.29 2,359.93
Issued - 9,394,508.50 9,394,508.50
Retired (145,000.00) (14,705,000.00) (14,850,000.00)
Debt payable June 30, 2020 $2,659,957.38 $ 65,920,238.10 $68,580,195.48
*Other Debt includes Special Obligation Bonds
Bonds payable for governmental and business-type activities at June 30, 2020 are comprised of the
following individual issues:
$ 1,620,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 2000 due as
follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2021 5.500% $1,620,000.00 $ 44,550.00 $1,664,550.00
$1,620,000.00 $ 44,550.00 $1,664,550.00
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, 2020 was $1,134,000. The reserve fund yields 5.16%.
50
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS – Continued
$566,900.00 Waterworks Revenue Bonds, Series 2010 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Admin Fee
Due
Total
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
$566,900.00 $45,926.32 $13,994.25 $626,820.57
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.
Waterworks System Refunding Revenue Bonds Series 2012A
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%. The bonds were paid off during the year ended June 30, 2020.
51
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$24,400,000.00 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
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
$24,400,000.00 $2,765,755.85 $ 967,047.50 $28,132,803.35
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 administrative 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.
52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$2,549,000.00 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
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
$2,549,000.00 $279,348.30 $100,485.00 $2,928,833.30
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 administrative 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.
53
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$28,039,000.00 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
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
$28,039,000.00 $3,077,960.40 $1,107,180.00 $32,224,140.40
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 administrative 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.
54
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$2,848,071.73 Note Payable - Southeast Missouri State University Foundation due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
$2,848,071.73
24,462.05
12,431.59
179,495.72
12,817.97
$371,928.27
460,000.00
460,000.00
460,000.00
460,000.00
$3,220,000.00
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%.
55
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$6,925,000.00 Special Obligation Bonds, Series 2015A due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
$6,925,000.00 $1,560,596.32 $ 8,485,596.32
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.
56
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$17,670,000.00 Special Obligation Bonds, Series 2016 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
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
$17,670,000.00 $3,760,068.82 $21,430,068.82
Principal payments are made annually on June 1, and interest payments are made semi-annually on
June 1 and December 1.
In May 2016, the City of Cape Girardeau issued $27,350,000.00 of Special Obligation Bonds, Series
2016 with interest rates varying from 2.000% to 4.000%. The bonds are special obligations of the City
payable solely from the revenues derived from annual appropriations by the City Council.
The bonds were issued by the City for the purpose of providing funds to (a) refund all of the Leasehold
Revenue Bonds, Series 2009, (b) expanding, renovating, and equipping a building to serve as a new
police headquarters; constructing an indoor sports complex; constructing, furnishing, and equipping a
new fire station; and other capital improvement projects and, (c) pay the costs of issuing the Bonds,
under the authority of and in full compliance with the City’s Charter and the constitution and laws of
the State of Missouri, and pursuant to an ordinance duly passed and proceedings duly and legally had
by the governing body of the City.
57
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$8,710,000.00 Special Obligation Bonds, Series 2018 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2021 N/A $ 0.00 $ 297,610.00 $ 297,610.00
2022 N/A 0.00 297,610.00 297,610.00
2023 N/A 0.00 297,610.00 297,610.00
2024 N/A 0.00 297,610.00 297,610.00
2025 N/A 0.00 297,610.00 297,610.00
2026 N/A 0.00 297,610.00 297,610.00
2027 N/A 0.00 297,610.00 297,610.00
2028 N/A 0.00 297,610.00 297,610.00
2029 N/A 0.00 297,610.00 297,610.00
2030 N/A 0.00 297,610.00 297,610.00
2031 3.300% 1,755,000.00 297,610.00 2,052,610.00
2032 3.400% 2,460,000.00 239,695.00 2,699,695.00
2033 3.450% 2,540,000.00 156,055.00 2,696,055.00
2034 3.500% 1,955,000.00 68,425.00 2,023,425.00
$8,710,000.00 $3,737,885.00 $12,447,885.00
Principal payments are made annually on June 1, and interest payments are made semi-annually on
June 1 and December 1.
In October 2018, the City of Cape Girardeau issued $8,710,000.00 of Special Obligation Bonds, Series
2018 with interest rates varying from 3.300% to 3.500%. 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) pay the costs of stormwater
and parks projects, and (b) 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.
58
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$8,650,000.00 Waterworks Refunding Revenue Bonds, Series 2019 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2021 4.000% $ 525,000.00 $ 369,570.56 $ 894,570.56
2022 4.000% 610,000.00 284,150.00 894,150.00
2023 4.000% 635,000.00 259,750.00 894,750.00
2024 4.000% 660,000.00 234,350.00 894,350.00
2025 4.000% 685,000.00 207,950.00 892,950.00
2026 4.000% 710,000.00 180,550.00 890,550.00
2027 4.000% 740,000.00 152,150.00 892,150.00
2028 3.000% 770,000.00 122,550.00 892,550.00
2029 3.000% 795,000.00 99,450.00 894,450.00
2030 3.000% 815,000.00 75,600.00 890,600.00
2031 3.000% 840,000.00 51,150.00 891,150.00
2032 3.000% 865,000.00 25,950.00 890,950.00
$ 8,650,000.00 $2,063,170.56 $10,713,170.56
On October 15, 2019, the City issued $8,650,000.00 of Refunding Revenue Bonds with total proceeds
of $9,394,508.50 at a true interest cost of 2.13%. The proceeds were used to refund the outstanding
Series 2012A Bonds.
The Bonds were issued with interest varying from 3.0% 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, and interest payments are made semi -annually on
January 1 and July 1.
59
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
$17,135,000.00 Special Obligation Bonds, Series 2020 due as follows:
Year Ending
June 30,
Interest
Rate
Principal
Due
Interest
Due
Total
2021 2.460 % $ 0.00 $ 137,880.95 $ 137,880.95
2022 2.460 % 0.00 364,850.46 364,850.46
2023 2.460 % 1,135,000.00 413,259.85 1,548,259.85
2024 2.460 % 1,165,000.00 385,591.68 1,550,591.68
2025 2.460 % 1,190,000.00 355,210.00 1,545,210.00
2026 2.460 % 1,225,000.00 325,094.13 1,550,094.13
2027 2.460 % 1,255,000.00 294,167.48 1,549,167.48
2028 2.460 % 1,280,000.00 263,230.26 1,543,230.26
2029 2.460 % 1,310,000.00 230,256.35 1,540,256.35
2030 2.460 % 1,345,000.00 197,147.48 1,542,147.48
2031 2.460 % 1,380,000.00 163,165.65 1,543,165.65
2032 2.460 % 1,410,000.00 128,676.45 1,538,676.45
2033 2.460 % 1,445,000.00 92,770.02 1,537,770.02
2034 2.460% 1,480,000.00 56,294.03 1,536,294.03
2035 2.460 % 1,515,000.00 18,945.08 1,533,945.08
$17,135,000.00 $3,426,539.87 $20,561,539.87
On January 3, 2020, the City of Cape Girardeau issued $17,135,000.00 of Special Obligation Bonds,
Series 2020 with a 2.46% interest rate. The bonds are special obligations of the City payable solely
from the revenues derived from annual appropriations by the City Council. Proceeds of the bonds will
be received as follows:
January 3, 2020 $1,835,000.00
September 15, 2020 2,300,000.00
December 1, 2020 4,000,000.00
June 1, 2021 4,000,000.00
December 1, 2021 5,000,000.00
Interest is only charged on principal that has been received.
The bonds were issued by the City for the purpose of providing funds to (a) pay the cost the relocation
and renovation of City Hall, and (b) may be used to finance, in any priority, the construction of a new
airport terminal and air traffic control tower at Cape Girardeau Regional Airport, improvements to the
Waterworks System, and street improvements.
Principal payments are made annually on December 1, and interest payments are made semi-annually
on June 1 and December 1.
60
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
The cash and investments available to service revenue bonds are $58,177.62 and $6,436,442.45 for the
governmental and business-type activities, respectively.
The cash and investments available to service the special obligation bonds are $23,113.81 and
$12,852.92 in governmental activities and business-type activities, respectively.
The annual requirements to amortize all debt outstanding as of June 30, 2020 including total interest
payments of $21,133,729.71 and total administrative fees of $2,188,706.75 are as follows:
Special
Year Ending Obligation Revenue Promissory
June 30, Bonds Bonds Note Total
2021 $ 2,835,269.71 $ 6,874,884.15 $ 460,000.00 $ 10,170,153.86
2022 3,179,714.22 5,225,299.42 460,000.00 8,865,013.64
2023 4,447,348.61 5,241,782.24 460,000.00 10,149,130.85
2024 4,471,330.44 5,256,724.21 460,000.00 10,188,054.65
2025 4,494,436.26 5,271,106.27 460,000.00 10,225,542.53
2026 4,099,320.39 5,285,989.73 460,000.00 9,845,310.12
2027 4,114,293.74 5,305,214.59 460,000.00 9,879,508.33
2028 4,126,175.26 5,320,653.03 - 9,446,828.29
2029 4,150,607.61 5,341,794.89 - 9,492,402.50
2030 4,170,636.24 5,355,513.50 - 9,526,149.74
2031 5,310,659.41 5,310,305.55 - 10,620,964.96
2032 5,130,405.21 5,327,923.75 - 10,458,328.96
2033 5,130,883.78 4,456,950.30 - 9,587,834.08
2034 4,460,852.79 4,476,008.60 - 8,936,861.39
2035 2,328,203.84 2,240,167.95 - 4,568,371.79
2036 474,952.50 - - 474,952.50
$62,925,090.01 $76,290,318.18 $3,220,000.00 $142,435,408.19
61
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE E - LONG-TERM OBLIGATIONS - Continued
Interest expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Interest and Other Costs $ 1,035,132.66
Total $ 1,035,132.66
Business-Type Activities:
Sewer $1,145,268.05
Solid Waste 99,249.09
Water 393,307.48
Total $ 1,637,824.62
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 $33,863,356.85.
NOTE F - DEFICIT FUND BALANCES/RETAINED EARNINGS
Park System Improvements Fund had its total liabilities exceed its total assets by $5,442.06.
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, 2020
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.
Effective September 1, 2018 the City began providing benefits to its current employees under the LT-
14 (65) benefit program available through LAGERS. Previously the City was providing benefits to its
current employees under the LT-8 (65) benefit program. Future benefits will be based on the final 3
year average salary multiplied by 1.75% 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, 2020 the following employees were covered by the benefits terms:
Retirees and Beneficiaries 282
Inactive, Non-retired Members 171
Active Members 375
Total 828
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.
During the current year employer annual contribution rates were 8.7% (General), 11.3% (Police) and
11.3% (Fire) of annual covered payroll.
The original annual required contribution (ARC) was determined as part of the February 28, 2018
annual actuarial valuation using the entry age actuarial cost method.
63
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE G - PENSION PLAN – Continued
5. Net Pension Asset
The City’s net pension asset was measured as of June 30, 2020, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of February 29, 2020.
6. Actuarial Assumptions
The total pension liability in the February 29, 2020 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 7.15% including wage inflation
Investment Rate of Return 7.25% net of investment expenses
The healthy retiree mortality tables, for post-retirement mortality, were the RP-2014 Healthy Annuitant
mortality table for males and females. The disabled retiree mortality tables, for post-retirement
mortality, were the RP-2014 disabled mortality table for males and females. The pre-retirement
mortality tables used were the RP-2014 employees’ mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for mortality improvement back to the
observation period base year of 2006. The base year for males was the established to be 2017.
Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality
improvement scale to the above described tables.
The actuarial assumptions used in the February 29, 2020 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 are
combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are summarized
in the following table:
Weighted Average
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Alpha 15.00% 3.67%
Equity 35.00% 4.78%
Fixed Income 31.00% 1.41%
Real Assets 36.00% 3.29%
Strategic Assets 8.00% 5.25%
Cash/Leverage 25.00% -0.29%
64
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 6/30/2019 $ 97,768,559 $ 89,261,250 $ 8,507,309
Changes for the year:
Service Cost - 1,882,849 (1,882,849)
Interest
Difference between expected and actual experience
-
-
6,382,392
1,327,953
(6,382,392)
(1,327,953)
Contributions – employer 1,684,304 1,684,304
Net investment income 1,273,966 - 1,273,966
Benefit payments, including refunds (4,383,123) (4,383,123) -
Administrative expense (104,476) - (104,476)
Other changes 261,510 - 261,510
Net changes (1,267,819) 5,210,071 (6,477,890)
Balances at 6/30/2020 $ 96,500,740 $ 94,471,321 $ 2,029,419
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%
($11,644,653) $2,029,419 $13,241,136
65
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE G - PENSION PLAN – Continued
9. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended June 30, 2020 the City recognized pension expense of $2,522,107.06. 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 $ 2,235,711 $ (922,163) $ 1,313,548
Differences in assumptions 390,236 - 390,236
Excess (deficit) in investment returns 2,550,932 - 2,550,932
Total $ 5,176,879 $ (922,163) $ 4,254,716
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year ended:
2021 200,140
2022 748,527
2023 1,578,289
2024 1,539,740
2025 167,967
Thereafter 20,053
Total $ 4,254,716
10. Payable to the Pension Plan
At June 30, 2020 the City reported a payable of $130,159.06 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2020.
66
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 $11,224,899 and $570,400, 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, 2020, 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, 2020, the following employees were covered by the benefit terms:
Retirees 46
Active 156
Total 202
67
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE H - POSTRETIREMENT HEALTHCARE BENEFITS – Continued
4. Total OPEB Liability
The City’s total OPEB liability of $11,224,899 was measured as of June 30, 2020, and was determined
by an actuarial valuation date of June 30, 2020 with no adjustments to get to the June 30, 2020
measurement date.
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, 2019 actuarial valuation
Discount Rate - 2.66% as of July 1, 2020 and 3.51% as of July 1, 2019
Healthcare cost trend rates - Medical / Rx cost trend rate of 8.0% for 2021, gradually decreasing to an
ultimate rate of 4.5% for 2025 and beyond
Dental cost trend rate of 4.0% for 2021, gradually decreasing to an ultimate rate of 3.0% for 2023 and
beyond
Mortality – SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using
Scale MP-2019 is used for General employees and retirees. SOA Pub-2010 Public Safety Headcount
Weighted Mortality Table fully generational using Scale MP-2019 is used for Police and Fire
employees and retirees. SOA Pub-2010 Contingent Survivor Headcount Weighted Mortality Table
fully generational using Scale MP-2019 is used for surviving spouses.
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, 2019 $ 10,503,760
Changes for the Year:
Service Cost 258,793
Interest on Total OPEB Liability 367,004
Effect of Economic/Demographic Gains or Losses (309,137)
Effect of Assumptions Changes or Inputs 1,023,004
Benefit Payments (618,525)
Net Changes 721,139
Balance at June 30, 2020 $ 11,224,899
68
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 2.66%,
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 (3.66%) or lower (1.66%) 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 12,095,336 $ 11,224,899 $ 10,427,685 $
Sensitivity of Net OPEB Liability as of June 30, 2020,
to the Current Single Discount Rate Assumption
Healthcare Cost
Trend Rates
1% Decrease Rate Assumption 1% Increase
Net OPEB liability 10,296,471 $ 11,224,899 $ 12,287,431 $
Sensitivity of Net OPEB Liability as of June 30, 2020,
to the Healthcare Cost Trend Rate Assumption
69
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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, 2020, the City recognized OPEB expense of $570,400. At June 30, 2020,
the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources:
Deferred Deferred
Outflows of Inflows
Resources Resources
Differences between expected and actual experience $ - $(1,083,896)
Changes of assumptions or other inputs 1,060,475 -
Total $1,060,475 $(1,083,896)
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:
2021 (55,397)
2022 (55,397)
2023 (55,398)
2024 142,771
Thereafter -
Total $ (23,421)
NOTE I - INTEREST EXPENSE
Interest and handling charges totaling $1,022,929.04, excluding $2,840.13 of inter-fund interest, were
incurred by governmental funds during the year ended June 30, 2020. Interest and handling charges
totaling $1,625,455.53, excluding $12,369.09 of inter-fund interest, were incurred by proprietary funds
during the year ended June 30, 2020. 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, 2020
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, 2020:
Fund Transfer From Transfer To
General Fund $ 4,153,281.35 $ 6,438,794.95
Park and Recreation Fund 333,333.00 1,882,666.34
Convention and Tourism Fund 423,852.20 -
Public Safety Trust Fund 3,800.00 ¤ -
Park & Recreation Foundation 7,000.00 -
Public Safety Trust Fund II 1,273,748.49 2,926,255.66
Casino Revenue Fund 146,680.01 -
Riverfront Region Economic Dev Fund - 146,680.01
Housing Development Grant - 34,111.44
Motor Fuel Tax Fund 1,431,045.00 -
Cap Imp Sales Tax - Water System Improve 299,848.33 -
Cap Imp Sales Tax - Sewer System Improve 3,450,000.00 ¤ -
Park/Storm Water Sales Tax-Capital II 1,870,064.85 -
Parks/Storm Water Sales Tax - Cap 1,265,807.01 -
Fire Sales Tax 2,547,496.95 -
Parks/Storm Water Sales Tax 1,356,299.07 -
General Capital Improvements 41,625.71 -
CDBG Grants 5,545.41 -
Stormwater System Improvements - 18,022.07
Park System Improvements - 756,600.81
Stormwater System Improvements Ph 2 - 172,632.01
Sewer Fund - 5,147,432.84
Water Fund - 299,848.33
Golf Course - 75,732.84
Indoor Sportsplex - 90,519.20
Sporting Complexes - 646,480.88
Employee Benefits Fund 26,350.00 -
$ 18,635,777.38 $ 18,635,777.38
71
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE J - INTER-FUND ACTIVITY - Continued
B. The following is a summary of inter-fund balances as of June 30, 2020:
Advance to/from other funds:
Advances from Advances to
Casino Revenue Fund $1,246,848.20 $ -
Solid Waste Fund - 1,246,848.20
$1,246,848.20 $1,246,848.20
The inter-fund balances are a result of advances used to purchase capital assets. The advances are
earning 3% and 3.5% annual interest and are set up to be repaid based on a 20 year amortization. Final
payments are expected on June 1, 2035 and June 1, 2039.
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, 2020 was as
follows:
Indoor
Sports
Sporting
Sewer Water Solid Waste Golf Course Complex Complexes Total
Fund Fund Fund Fund Fund
Fund Enterprise
Operating Revenues $ 6,984,299.96 $ 6,870,418.79 $4,771,442.52 $ 486,100.41 $ 558,233.51 $ 295,409.54 $ 19,965,904.73
Depreciation 4,350,189.96 1,988,802.32 407,268.87 131,845.87 325,219.01 344,611.99 7,547,938.02
Operating Income (Loss) (1,376,423.73) (522,180.86) 258,947.23 (228,288.37) (425,535.84) (1,038,957.25) (3,332,438.82)
Operating Transfers In 5,147,432.84 301,230.13 - 75,732.84 90,519.20 646,480.88 6,261,395.89
Net Income (Loss) 4,170,920.31 (197,787.76) 194,201.97 37,880.57 (322,828.94) (338,241.78) 3,544,144.37
Current Capital Contributions 1,251,448.81 275,318.67 - 183,450.00 8,481.59 14,305.16 1,733,004.23
Property, Plant, and Equipment
Additions 2,381,106.99 1,505,609.89 1,158,892.70 183,450.00 8,481.59 22,305.16 5,259,846.33
Deletions 94,932.51 167,281.27 772,228.77 - - - 1,034,442.55
Net Working Capital 1,003,099.27 7,569,862.43 2,056,549.84 115,636.08 137,463.42 191,421.39 11,074,032.43
Total Assets 126,802,468.02 53,225,694.58 8,760,257.54 1,498,414.14 12,929,995.43 3,255,067.14 206,471,896.85
Current Liabilities 5,949,411.66 1,328,676.23 618,292.05 99,979.32 90,502.78 137,107.40 8,223,969.44
Long-Term Liabilities 52,146,422.28 8,833,053.54 4,109,327.97 123,277.16 26,954.69 90,476.97 65,329,512.61
Amounts payable to Other Funds - - 1,246,848.20 - - - 1,246,848.20
Total Liabilities 58,095,833.94 10,161,729.77 4,727,620.02 223,256.48 117,457.47 227,584.37 73,553,482.05
Total Net Position $ 68,843,506.43 $43,096,771.42 $4,176,261.67 $1,308,095.84 $ 12,799,532.53 $3,059,479.65 $ 133,283,647.54
72
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 $268,900.77 and long-term advance receivables of $1,246,848.20 are also reflected as non-
spendable fund balances.
Restricted Fund Balance – Includes amounts that can be spent only for specific purposes because of
restrictions by external parties, constitutional provisions, or enabling legislation. These financial
statements include the following restricted fund balances. Fund balances totaling $4,783,934.00 are
restricted by the City Charter to use during officially declared emergencies. Special revenue fund
balances totaling $24,347,204.21 are restricted by their enabling legislation. $5,550,348.78 in capital
project fund balances are restricted as the result of special revenue transfers and unspent bond proceeds.
The remaining $186,342.63 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, 2020
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
Other Funds
Total
Fund balances
Nonspendable:
Prepaid expenses $ 162,769.24 $ 14,803.27 $ 20,021.76 $ - $ - $ 71,306.50 $ 268,900.77
Long-term advance - - - 1,246,848.20 - - 1,246,848.20
Mausoleum 2,100.00 - - - - - 2,100.00
Restricted for:
Mausoleum 100,880.96 - - - - - 100,880.96
Emergencies 3,844,442.00 206,929.00 414,226.00 - - 318,337.00 4,783,934.00
Undistributed TIF revenue 85,461.67 - - - - - 85,461.67
Convention and tourism - - - - - 1,428,613.06 1,428,613.06
Community development - - - - - 117,540.94 117,540.94
Public safety - - - - - 717,149.54 717,149.54
Street projects - - - - 12,757,160.12 398,514.19 13,155,674.31
Water system projects - - - - - 1,377,264.32 1,377,264.32
Sewer system projects - - - - - 7,978,511.80 7,978,511.80
Parks and recreation - - - - - 3,104,990.95 3,104,990.95
Other capital projects - - - - - 2,017,808.07 2,017,808.07
Committed:
Other capital projects - - - 4,961,438.14 - - 4,961,438.14
Assigned to:
Airport - 30,896.43 - - - - 30,896.43
Parks and recreation - - 11,945.32 - - 556,512.36 568,457.68
Operations and mtce - - 402,407.10 - - - 402,407.10
Encumbrances 25,360.01 14,511.53 - - - - 39,871.54
Public safety - - - - - 239,267.45 239,267.45
Other capital projects - - - - - 1,105,297.20 1,105,297.20
Unassigned: 1,547,576.09 - - - - (5,442.06) 1,542,134.03
$ 5,768,589.97 $ 267,140.23 $ 848,600.18 $ 6,208,286.34 $ 12,757,160.12 $19,425,671.32 $ 45,275,448.16
74
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE M - PROPRIETARY FUNDS RESTRICTED NET ASSETS AND RESTRICTED CASH
EQUIVALENTS AND INVESTMENT
At June 30, 2020, net position restricted for depreciation and replacement was $150,000.00 for the
City’s Water Fund, and net assets restricted for emergencies were $1,582,833.00, $977,229.00,
$678,409.00, $89,522.00, $115,091.00, and $156,829.00 for the City’s Sewer, Water, Solid Waste,
Golf Course, Indoor Sports Complex, and Sporting Complexes Fund, respectively.
At June 30, 2020, the City’s Sewer Fund had restricted cash equivalents in sinking reserve funds for
Revenue Bonds in the amount of $5,954,399.88.
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
$11,000.00 as of June 30, 2020, 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,
2020. 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; cyber-attacks; 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’s insurance coverage is as follows:
Commercial general liability, law enforcement liability, public officials errors and omissions, and
employment-related practices liability is carried by One Beacon/Intact Insurance Specialty Solutions –
Producer Sunstar Insurance Group, LLC DBA W. E. Walker Lakenan.
Cyber Risk liability (Risk Manager PLUS+) coverage is carried by The Travelers Companies/Bond &
Specialty Insurance – Producer Sunstar Insurance Group, LLC DBA W. E. Walker Lakenan.
75
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE O - RISK MANAGEMENT – Continued
Vehicle loss and accident liability is carried by One Beacon/Intact Insurance Specialty Solutions –
Producer Sunstar Insurance Group, LLC DBA W. E. Walker Lakenan.
Airport liability is carried by National Union Fire Insurance Company - Producer EBCO Aviation
Underwriters.
Property insurance is carried by Chubb Group of Insurance Companies/Federal Insurance Company –
Producer Sunstar Insurance Group, LLC DBA W. E. Walker Lakenan.
Equipment coverage is carried by Travelers Property Casualty Company – Producer Sunstar Insurance
Group, LLC DBA W. E. Walker Lakenan.
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 $4,100,000 and $4,500,000
for years ending December 31, 2019 and December 31, 2020, 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 76.0% of the aggregate stop loss amount during the current fiscal year.
Thomas McGee Group 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 $500,000 for USL & H and $500,000 for other regular employees and per
occurrence claims liability to $1,000,000. 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.
76
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE O - RISK MANAGEMENT – Continued
Claims liability is estimated using data supplied by the administrator. The claims activity during the
last five years is summarized as follows:
CLAIMS LIABILITIES RECONCILIATION
Health Workers’
Insurance Compensation Total
Balance June 30, 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
Provisions for Incurred Claims 3,696,756 482,643 4,179,399
Payment of Claims (3,466,756) (570,043) (4,036,799)
Balance June 30, 2019
Provisions for Incurred Claims
Payment of Claims
Balance June 30,2020
$ 329,000
3,501,872
(3,696,872)
$ 134,000
$ 538,100
817,620
(712,720)
$ 643,000
$ 867,100
4,319,492
(4,409,592)
$ 777,000
NOTE P - CONCENTRATION OF CREDIT RISK/BAD DEBT ALLOWANCE
The City has uncollateralized utility accounts receivable generated within a limited geographical region
primarily consisting of its City limits. The City also has taxes, special assessments, and user fees
receivable which are concentrated among its citizens. Some of these items attach as liens against real
and personal property. The maximum accounting loss is the amount shown as utility charges
receivable on the statement of net position.
At June 30, 2020, utility receivables totaled $2,439,481.66. On the financial statements, the utility
receivables are shown net of the allowance for doubtful accounts of $153,440.24. This results in net
utility receivable of $2,286,041.42. During the year ended June 30, 2020, the allowance was increased
by $47,291.66 or approximately 0.26% of the current year’s utility charges, and accounts totaling
$46,527.20 were written off.
77
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 reimbu rsement 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, 2020, the City had construction commitments outstanding of $11,968,609.42. The
construction commitments represent incomplete portions of contracts entered into to construct various
street projects and design/build a new City Hall. These contracts are expected to be completed within
the next fiscal year.
4. Encumbrances
As of June 30, 2020, the City had encumbrances outstanding of $15,277,562.34.
NOTE R – PRIOR PERIOD ADJUSTMENTS
The net position of the governmental funds was increased by $21,075.05, while the business activities
was decreased by $911.28, as of June 30, 2020, from transactions that occurred in previous years. Grant
revenue, which was previously thought to not be recoverable, was received for the Police Protection at
the Airport (LEO) grant. This adjustment resulted in the net position of governmental funds being
increased by $23,500.00. Prior year construction in progress costs were recorded in a previous year in
error. These were corrected and resulted in a decrease of $2,424.95 in governmental funds and a
decrease in business-type net position of $911.28.
78
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
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 $5,757.97 in real property taxes were abated related to provisions of
Chapter 353. The 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 one Redevelopment Project Area in the Cape Downtown Tax Increment
Financing District (TIF) according to Missouri TIF laws. During the current year $131,855.57 in real
property taxes were abated related to provisions of these laws. Abatement of City real property taxes
accounted for $9,891.29 of this amount. 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 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.
79
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE T - CONTINGENCY – Continued
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, 2020, the City incurred payments of $37,882.87 under the
development agreement. This amount is included in the Development Services expenses on the
statement of activities.
2. In June 2004, the City of Cape Girardeau and Cape Girardeau County entered into a
development agreement with a local real estate developer. Under the agreement, the local
developer agreed to pay for certain public improvements incurred in conjunction with the
development of a 60 acre retail development, and the City and County agreed to reimburse the
local business for the $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 b y 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 a n
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.
80
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2020
NOTE T - CONTINGENCY – Continued
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 additional public
improvements is reimbursed to the developer or fifteen years from the beginning of repayments
to the developer for costs related to the additional public improvements.
The City and the County are obligated only to make quarterly payments as may lawfully be
made from funds budgeted and appropriated for that purpose by the City and County. During
the fiscal year ended June 30, 2020 the City incurred payments of $248,988.99 under the
development agreement. This amount is included in the Development Services expenses on the
statement of activities.
3. 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. The transportation sales tax has an
expiration date that occurs during the contract period. 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,
2020, the City incurred $294,865.94 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, 2020
NOTE T - CONTINGENCY – Continued
4. 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. One of the capital improvement
sales taxes has an expiration date 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,
2020, the City incurred $60,830.64 under the development agreement.
REQUIRED SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 17,813,025.00 $ 17,813,025.00 $ 17,180,009.20 $ (633,015.80)
Licenses & permits 1,671,600.00 1,671,600.00 1,626,981.66 (44,618.34)
Intergovernmental 579,260.00 607,661.00 958,260.59 350,599.59
Charges for services 615,700.00 615,700.00 560,951.80 (54,748.20)
Internal charges 1,192,056.00 1,192,056.00 1,222,013.31 29,957.31
Fines and forfeits 679,100.00 679,100.00 481,025.67 (198,074.33)
Miscellaneous 359,725.00 359,725.00 419,279.30 59,554.30
Investment revenue 115,325.00 115,325.00 113,187.08 (2,137.92)
Total revenues 23,025,791.00 23,054,192.00 22,561,708.61 (492,483.39)
EXPENDITURES
Current:
Administrative Services 3,046,067.00 3,249,009.00 3,086,060.54 162,948.46
Development Services 2,512,136.00 2,752,936.00 2,663,775.56 89,160.44
Parks and Recreation 1,738,242.00 1,725,742.00 1,647,700.51 78,041.49
Public Safety 14,831,503.00 15,243,727.00 15,022,675.30 221,051.70
Public Works 2,732,757.00 2,732,757.00 2,624,539.21 108,217.79
Total current 24,860,705.00 25,704,171.00 25,044,751.12 659,419.88
Capital outlay:
Administrative Services - - - -
Public Safety - 283,102.00 376,104.44 (93,002.44)
Parks and Recreation - - 14,845.82 (14,845.82)
Total capital outlay - 283,102.00 390,950.26 (107,848.26)
Total expenditures 24,860,705.00 25,987,273.00 25,435,701.38 551,571.62
Excess (deficiency) of revenues over expenditures (1,834,914.00) (2,933,081.00) (2,873,992.77) 59,088.23
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 25,129.96 25,129.96
Special assessments 14,000.00 14,000.00 31,948.94 17,948.94
Asset disposition - - 145,673.79 145,673.79
Transfers in 6,001,576.00 6,606,576.00 6,438,794.95 (167,781.05)
Transfers out (4,321,842.00) (4,790,026.00) (4,153,281.35) 636,744.65
Total other financing source (uses) 1,693,734.00 1,830,550.00 2,488,266.29 657,716.29
Net change in fund balances (141,180.00) (1,102,531.00) (385,726.48) 716,804.52
Fund balances - beginning 6,059,525.67 6,059,525.67 6,059,525.67 -
Prior period adjustment 23,500.00 23,500.00 23,500.00 -
Fund balances - ending $ 5,941,845.67 $ 4,980,494.67 $ 5,697,299.19 $ 716,804.52
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 257,000.00 $ 934,148.00 $ 1,249,472.60 $ 315,324.60
Charges for services 522,450.00 522,450.00 499,938.95 (22,511.05)
Miscellaneous 287,031.00 287,031.00 282,619.02 (4,411.98)
Investment revenue 8,325.00 8,325.00 357.75 (7,967.25)
Total revenues 1,074,806.00 1,751,954.00 2,032,388.32 280,434.32
EXPENDITURES
Current:
Development Services 1,609,731.00 2,278,029.00 1,941,337.09 336,691.91
Total current 1,609,731.00 2,278,029.00 1,941,337.09 336,691.91
Debt service:
Interest - - 21.69 (21.69)
Total debt service - - 21.69 (21.69)
Capital outlay:
Development Services - 206,208.00 102,989.95 103,218.05
Total capital outlay - 206,208.00 102,989.95 103,218.05
Total expenditures 1,609,731.00 2,484,237.00 2,044,348.73 439,888.27
Excess (deficiency) of revenues over expenditures (534,925.00) (732,283.00) (11,960.41) 720,322.59
OTHER FINANCING SOURCES (USES)
Transfers in 534,925.00 534,925.00 - (534,925.00)
Total other financing source (uses) 534,925.00 534,925.00 - (534,925.00)
Net change in fund balances - (197,358.00) (11,960.41) 185,397.59
Fund balances - beginning 264,073.71 264,073.71 264,073.71 -
Fund balances - ending $ 264,073.71 $ 66,715.71 $ 252,113.30 $ 185,397.59
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 1,687,595.00 $ 1,687,595.00 $ 1,259,337.10 $ (428,257.90)
Miscellaneous 14,768.00 14,768.00 17,220.28 2,452.28
Investment revenue 24,750.00 24,750.00 16,146.38 (8,603.62)
Total revenues 1,727,113.00 1,727,113.00 1,292,703.76 (434,409.24)
EXPENDITURES
Current:
Parks and Recreation 2,797,132.00 2,908,525.00 2,808,261.88 100,263.12
Total current 2,797,132.00 2,908,525.00 2,808,261.88 100,263.12
Capital outlay:
Parks and Recreation - 74.00 22,938.02 (22,864.02)
Total capital outlay - 74.00 22,938.02 (22,864.02)
Total expenditures 2,797,132.00 2,908,599.00 2,831,199.90 77,399.10
Excess (deficiency) of revenues over expenditures (1,070,019.00) (1,181,486.00) (1,538,496.14) (357,010.14)
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 1,981.57 1,981.57
Transfers in 1,403,352.00 1,863,352.00 1,882,666.34 19,314.34
Transfers out (333,333.00) (333,333.00) (334,714.80) (1,381.80)
Total other financing source (uses) 1,070,019.00 1,530,019.00 1,549,933.11 19,914.11
Net change in fund balances - 348,533.00 11,436.97 (337,096.03)
Fund balances - beginning 825,743.88 825,743.88 825,743.88 -
Fund balances - ending $ 825,743.88 $ 1,174,276.88 $ 837,180.85 $ (337,096.03)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,800,000.00 $ 2,800,000.00 $ 2,142,834.91 $ (657,165.09)
Investment revenue 130,929.00 130,929.00 143,259.02 12,330.02
Total revenues 2,930,929.00 2,930,929.00 2,286,093.93 (644,835.07)
EXPENDITURES
Current:
Administrative Services 1,136,500.00 1,136,500.00 943,108.15 193,391.85
Total current 1,136,500.00 1,136,500.00 943,108.15 193,391.85
Debt service:
Principal 390,449.86 390,449.86 390,449.86 -
Interest 69,550.14 69,550.14 69,550.14 -
Total debt service 460,000.00 460,000.00 460,000.00 -
Capital outlay:
Administrative Services - 525,000.00 511,197.91 13,802.09
Public Safety - 275,000.00 274,555.49 444.51
Total capital outlay - 800,000.00 785,753.40 14,246.60
Total expenditures 1,596,500.00 2,396,500.00 2,188,861.55 207,638.45
Excess (deficiency) of revenues over expenditures 1,334,429.00 534,429.00 97,232.38 (437,196.62)
OTHER FINANCING SOURCES (USES)
Advance repayments 20,455.00 20,455.00 20,454.69 (0.31)
Transfers out (190,000.00) (190,000.00) (146,680.01) 43,319.99
Total other financing source (uses) (169,545.00) (169,545.00) (126,225.32) 43,319.68
Net change in fund balances 1,164,884.00 364,884.00 (28,992.94) (393,876.94)
Fund balances - beginning 3,170,028.78 3,170,028.78 3,170,028.78 -
Fund balances - ending $ 4,334,912.78 $ 3,534,912.78 $ 3,141,035.84 $ (393,876.94)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 5,263,500.00 $ 5,263,500.00 $ 5,053,646.33 $ (209,853.67)
Intergovernmental - - 7,974.88 7,974.88
Investment revenue 75,000.00 75,000.00 244,713.51 169,713.51
Total revenues 5,338,500.00 5,338,500.00 5,306,334.72 (32,165.28)
EXPENDITURES
Current:
Development Services 282,500.00 294,730.00 262,125.68 32,604.32
Total current 282,500.00 294,730.00 262,125.68 32,604.32
Capital outlay:
Capital Improvements 8,865,000.00 852,770.00 1,590,389.84 (737,619.84)
Total capital outlay 8,865,000.00 852,770.00 1,590,389.84 (737,619.84)
Total expenditures 9,147,500.00 1,147,500.00 1,852,515.52 (705,015.52)
Excess (deficiency) of revenues over expenditures (3,809,000.00) 4,191,000.00 3,453,819.20 (737,180.80)
Net change in fund balances (3,809,000.00) 4,191,000.00 3,453,819.20 (737,180.80)
Fund balances - beginning 8,513,038.11 8,513,038.11 8,513,038.11 -
Fund balances - ending $ 4,704,038.11 $ 12,704,038.11 $ 11,966,857.31 $ (737,180.80)
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, 2020
87
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2020
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 17, 2019 and amended on March
2, 2020; May 18, 2020; August 3, 2020; and September 8, 2020. The initial budget and
final amended budget are both reflected in the financial statements.
For the year ended June 30, 2020, the fund expenditures for Motor Fuel Tax, Transportation Trust
Fund IV, Capital Improvements Sales Tax-General Improvements, Parks/Stormwater Sales Tax-
Capital and Information Technology exceeded their approved budgets by $2,477.56, $164,831.79,
$41,613.66, $4,777.61 and $7,861.98, respectively.
88
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2020
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
Parks and Revenue Sales Tax Trust Non-major
General Airport Recreation Fund Fund V Funds
GAAP Basis $ (391,300.87) $(27,917.55) $ 16,263.91 $ (50,805.48) $ 2,243,163.05 $ 2,056,652.41
Increase due to:
Prior year-end encumbrances
Administrative services 24,874.90 - - - - -
Development services 21,288.06 33,946.69 - - - 69.00
Parks and recreation 584.58 - 5,354.33 - - -
Public safety 21,965.93 - - 2,670,803.05 - 113,718.71
Public works 2,476.00 - - - - -
Capital outlay - - - - 2,000,019.26 231,883.11
Adjust investments to market - - - - - 212.57
Funds not budgeted annually - - - - - 788,052.91
Encumbrance revenue - 284,013.52 - - - 32,632.00
71,189.47 317,960.21 5,354.33 2,670,803.05 2,000,019.26 1,166,568.30
Decrease due to:
Current year-end encumbrances
Administrative services 2,992.30 - - - - -
Development services 4,557.06 301,588.22 - - - 32,665.00
Parks and recreation - - - - - 90,322.00
Public safety 6,829.05 - - 1,774,740.72 - 61,930.03
Public works 10,981.60 - - - - -
Capital outlay - - - - 670,642.85 11,482,314.55
Adjust investments to market 40,255.07 414.85 10,181.27 39,704.48 108,913.71 112,642.94
Advance repayments - - - 834,545.31 - -
Funds not budgeted annually - - - - - 345,694.89
Encumbrance revenue - - - - 9,806.55 -
65,615.08 302,003.07 10,181.27 2,648,990.51 789,363.11 12,125,569.41
Budget Basis $ (385,726.48) $(11,960.41) $ 11,436.97 $ (28,992.94) $ 3,453,819.20 $(8,902,348.70)
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.
89
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2020
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Solid Golf Indoor Sports Sporting
Sewer Water Waste Course Complex Complexes
GAAP Basis $ 4,170,920.31 $ (197,787.76) $ 194,201.97 $ 37,880.57 $ (322,828.94) $ (338,241.78)
Increase due to :
Prior year encumbrances
Operating expenses 69,034.34 76,043.83 364.34 - - 2,661.90
Depreciation 4,350,189.96 1,988,802.32 407,268.87 131,845.87 325,219.01 344,611.99
Special assessments 2,130.00 - - - - -
Amortized Bond premium/discount - 896.29 1,463.64 - - -
Bond proceeds - 9,394,508.50 - - - -
Amount to be used for future debt service
on capital appreciation bonds:
Construction fund earnings 29,885.91 6,241.07 23,277.03 5,046.55 5,405.02 -
Adjustment to liability for future
Landfill postclosure maintenance costs - - 1,376.43
Net OPEB obligation 14,637.22 2,047.91 -
23,813.39 9,053.97 3,017.99 9,053.97
set dispositions 70,000.00 93,448.10 75,941.17 - - -
Amount deferred for future debt service
for capital appreciation bonds
Interest subsidy received 29,080.71 - - - - -
Net pension cost - - - - - 7,761.37
Advance from casino revenue - - 855,000.00 - - -
Bad debt allowance 16,706.89 15,334.21 15,250.56 - - -
4,581,665.03 11,577,322.23 1,403,755.43 145,946.39 333,642.02 364,089.23
Decrease due to:
Year-end encumbrances
Operating expenses 67,585.18 310,021.05 618.57 - - -
Landfill closure and maintenance costs - - 4,126.43 - - -
Interest paid more than accrual 63,179.43 - - - - -
Bond principal paid - 9,905,000.00 165,454.69 - - -
Capital outlays 5,331,700.67 445,825.68 1,138,852.93 - - 8,000.00
Adjust investments to market 52,878.90 60,909.39 19,199.40 1,747.54 1,871.94 2,545.70
Deferred revenues 68,681.68 55,961.89 69,701.69 -
- -
Adjustment to liability for future landfill
post closure maintenance costs - - - - - -
Net OPEB Obligation 32,474.32 - 4,000.07 - - -
Contributed capital 1,137,439.81 275,318.67 - 183,450.00 8,481.59 14,305.16
6,753,939.99 11,053,036.68 1,401,953.78 185,197.54 10,353.53 24,850.86
Budget Basis $ 1,998,645.35 $ 326,497.79 $ 196,003.62 $ (1,370.58) $ 459.55 $ 996.59
90
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2020
BUDGETS AND BUDGETARY ACCOUNTING - Continued
Net Income (Loss)
Fleet Employee Risk Equipment
IT Management Fringe Management Replacement
GAAP Basis $ 9,898.00 $ (61,290.56) $ (124,227.00) $ (192,599.56) $ 141,452.21
Increase due to:
Prior year encumbrances
Operating expenses - 4,479.11 - - -
Capital outlays 14,152.86 - - - -
Depreciation 91,159.74 22,354.85 - - 275,680.89
Difference between proceeds from sale
of fixed assets and gain or loss - - - - 100,000.00
Net pension cost
Net OPEB Obligation
7,296.82
6,488.68
14,511.07
18,835.53
-
-
-
-
-
-
119,098.10 60,180.56 - - 375,680.89
Decrease due to:
Adjust investments to market 609.73 2,021.46 18,100.83 9,943.26 16,135.27
Capital outlays 103,951.48 15,445.15 - - 531,848.72
104,561.21 17,466.61 18,100.83 9,943.26 547,983.99
Budget Basis $ 24,434.89 $ (18,576.61) $ (142,327.83) $ (202,542.82) $ (30,850.89)
2020 2019 2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 1,013,062$ 863,072$ 847,662$ 813,616$ 795,771$ 768,458$
Interest on the Pension Liability 3,125,720 2,770,920 2,668,902 2,567,279 2,346,499 2,240,283
Changes of Benefit Terms - 3,061,598 - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability 517,894 (113,254) (568,794) (678,078) (183,850) (261,952)
Changes of Assumptions - - - - 1,388,735 -
Benefit Payments, Including Refunds of Employee Contributions (1,760,611) (1,763,786) (1,340,034) (1,296,403) (1,324,473) (1,266,841)
Net Change in Total Pension Liability 2,896,065 4,818,550 1,607,736 1,406,414 3,022,682 1,479,948
Total Pension Liability - Beginning 43,480,611 38,662,061 37,054,325 35,647,911 32,625,229 31,145,281
Total Pension Liability - Ending (A)46,376,676$ 43,480,611$ 38,662,061$ 37,054,325$ 35,647,911$ 32,625,229$
Plan Fiduciary Net Position
Contributions - Employer 864,919$ 3,608,999$ 847,162$ 745,001$ 820,228$ 1,953,089$
Contributions - Employees - - - 16,008 - -
Net Investment Income 637,692 3,002,641 4,823,411 4,214,232 (82,162) 684,825
Benefit Payments, Including Refunds of Employee Contributions (1,760,611) (1,763,786) (1,340,034) (1,296,403) (1,324,473) (1,266,841)
Pension Plan Administrative Expense (64,681) (58,089) (40,041) (38,351) (37,018) (40,731)
Other (Net Transfers)32,102 (122,011) (225,107) (15,167) (298,285) 267,961
Net Change in Plan Fiduciary Net Position (290,579) 4,667,754 4,065,391 3,625,320 (921,710) 1,598,303
Plan Fiduciary Net Position - Beginning 48,301,765 43,634,011 39,568,620 35,943,300 36,865,010 35,266,707
Plan Fiduciary Net Position - Ending (B)48,011,186$ 48,301,765$ 43,634,011$ 39,568,620$ 35,943,300$ 36,865,010$
Net Pension Liability - Ending (A) - (B)(1,634,510) (4,821,154) (4,971,950) (2,514,295) (295,389) (4,239,781)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 103.52%111.09%112.86%106.79%100.83%113.00%
Covered Valuation Payroll 10,105,920$ 9,908,724$ 9,841,879$ 9,707,798$ 9,109,297$ 8,987,241$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -16.17%-48.66%-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, 2020
GENERAL DIVISION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
See Accompanying Notes to the Basic Financial Statements.
91
2020 2019 2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 418,343$ 370,763$ 367,842$ 345,371$ 309,133$ 303,651$
Interest on the Pension Liability 1,593,730 1,425,037 1,377,421 1,327,202 1,248,307 1,182,926
Changes of Benefit Terms - 839,984 - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability 343,900 767,339 (5,046) 21,040 (83,909) 274,477
Changes of Assumptions - - - - 481,968 -
Benefit Payments, Including Refunds of Employee Contributions (1,110,912) (1,088,863) (1,081,050) (945,268) (827,008) (895,666)
Net Change in Total Pension Liability 1,245,061 2,314,260 659,167 748,345 1,128,491 865,388
Total Pension Liability - Beginning 22,322,704 20,008,444 19,349,277 18,600,932 17,472,441 16,607,053
Total Pension Liability - Ending (A)23,567,765$ 22,322,704$ 20,008,444$ 19,349,277$ 18,600,932$ 17,472,441$
Plan Fiduciary Net Position
Contributions - Employer 449,883$ 1,359,472$ 392,375$ 366,721$ 337,743$ 1,043,262$
Contributions - Employees - - - - - -
Net Investment Income 300,296 1,519,462 2,382,243 2,267,369 (46,280) 349,748
Benefit Payments, Including Refunds of Employee Contributions (1,110,912) (1,088,863) (1,081,050) (945,268) (827,008) (895,666)
Pension Plan Administrative Expense (22,319) (19,439) (13,830) (13,148) (12,366) (12,862)
Other (Net Transfers)84,957 91,515 (42,272) 156,567 50,565 (106,927)
Net Change in Plan Fiduciary Net Position (298,095) 1,862,147 1,637,466 1,832,241 (497,346) 377,555
Plan Fiduciary Net Position - Beginning 23,808,237 21,946,090 20,308,624 18,476,383 18,973,729 18,596,174
Plan Fiduciary Net Position - Ending (B)23,510,142$ 23,808,237$ 21,946,090$ 20,308,624$ 18,476,383$ 18,973,729$
Net Pension Liability - Ending (A) - (B)57,623 (1,485,533) (1,937,646) (959,347) 124,549 (1,501,288)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 99.76%106.65%109.68%104.96%99.33%108.59%
Covered Valuation Payroll 4,179,275$ 3,776,550$ 3,943,991$ 3,818,933$ 3,536,454$ 3,223,790$
Net Pension Liability as a Percentage
of Covered Valuation Payroll 1.38%-39.34%-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, 2020
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.
92
2020 2019 2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 451,444$ 397,573$ 401,292$ 388,806$ 375,784$ 370,414$
Interest on the Pension Liability 1,662,942 1,505,476 1,472,645 1,452,993 1,336,826 1,319,931
Changes of Benefit Terms - 951,134 - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability 466,159 765,218 (152,061) (515,001) 461,181 (356,529)
Changes of Assumptions - - - - 508,788 -
Benefit Payments, Including Refunds of Employee Contributions (1,511,600) (1,437,533) (1,102,750) (1,022,379) (1,148,773) (1,059,610)
Net Change in Total Pension Liability 1,068,945 2,181,868 619,126 304,419 1,533,806 274,206
Total Pension Liability - Beginning 23,457,935 21,276,067 20,656,941 20,352,522 18,818,716 18,544,510
Total Pension Liability - Ending (A)24,526,880$ 23,457,935$ 21,276,067$ 20,656,941$ 20,352,522$ 18,818,716$
Plan Fiduciary Net Position
Contributions - Employer 369,502$ 1,334,300$ 370,929$ 326,044$ 375,209$ 765,345$
Contributions - Employees - - - - - -
Net Investment Income 335,978 1,640,175 2,629,862 2,374,115 (40,593) 415,318
Benefit Payments, Including Refunds of Employee Contributions (1,511,600) (1,437,533) (1,102,750) (1,022,379) (1,148,773) (1,059,610)
Pension Plan Administrative Expense (17,476) (14,968) (10,585) (10,113) (9,925) (10,625)
Other (Net Transfers)144,451 (101,158) (28,894) 100,165 18,256 (25,522)
Net Change in Plan Fiduciary Net Position (679,145) 1,420,816 1,858,562 1,767,832 (805,826) 84,906
Plan Fiduciary Net Position - Beginning 25,658,557 24,237,741 22,379,179 20,611,347 21,417,173 21,332,267
Plan Fiduciary Net Position - Ending (B)24,979,412$ 25,658,557$ 24,237,741$ 22,379,179$ 20,611,347$ 21,417,173$
Net Pension Liability - Ending (A) - (B)(452,532) (2,200,622) (2,961,674) (1,722,238) (258,825) (2,598,457)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 101.85%109.38%113.92%108.34%101.27%113.81%
Covered Valuation Payroll 3,442,123$ 3,211,902$ 3,290,770$ 3,283,135$ 3,099,147$ 3,017,659$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -13.15%-68.51%-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, 2020
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
June 30, 2020
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
2020 1,684,593$ 1,684,593$ -$ 17,195,349$ 9.80%
2019 1,728,666 1,728,666 - 17,300,564 9.99%
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%
Notes to Schedule:
Valuation Date:February 29, 2020
Notes The roll-forward of total pension liability from February 29, 2020 to
June 30, 2020 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 7.15%, including wage inflation
Investment Rate of Return:7.25%, net of investment expenses
Retirement Age:Experience-based table of rates that are specific to the type of
eligibility condition.
Mortality:The healthy retiree mortality tables, for post-retirement mortality,
were the RP-2014 Healthy Annuitant mortality table for males and
females. The disabled retiree mortality tables, for post-retirement
mortality, were the RP-2014 disabled mortality table for males and
females. The pre-retirement mortality tables used were the RP-2014
employees mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for
mortality improvement back to the observation period base year of
2006. The base year for males was then established to be 2017.
Mortality rates for a particular calendar year are determined by
applying the MP-2015 morality improvement scale to the above
described tables.
Other Information: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.
94
2020 2019 2018
Calendar Year Ended June 30,
Total OPEB Liability
Service Costs 258,793$ 251,092$ 303,952$
Interest on Total OPEB Liability 365,681 428,525 407,566
Effect of Economic/Demographic Gains or Losses (231,761) (961,604) (519,247)
Effect of Assumptions Changes or Inputs 1,023,004 271,656 158,158
Benefit Payments (694,578) (609,858) (608,774)
Net Change in Total OPEB Liability 721,139 (620,189) (258,345)
Total OPEB Liability - Beginning 10,503,760 11,123,949 11,382,294
Total OPEB Liability - Ending 11,224,899$ 10,503,760$ 11,123,949$
Covered Employee Payroll 7,230,766 9,369,121 9,074,209
Total OPEB Liability as a Percentage
of Covered Employee Payroll 155.24%112.11%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, 2020
REQUIRED SUPPLEMENTARY INFORMATION
See Accompanying Notes to the Financial Statements.
95
SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 4,346,225.00 $ 4,346,225.00 $ 4,543,823.77 $ 197,598.77
Investment revenue 45,000.00 45,000.00 78,159.10 33,159.10
Total revenues 4,391,225.00 4,391,225.00 4,621,982.87 230,757.87
EXPENDITURES
Current:
Development Services 315,000.00 315,000.00 263,217.28 51,782.72
Total current 315,000.00 315,000.00 263,217.28 51,782.72
Total expenditures 315,000.00 315,000.00 263,217.28 51,782.72
Excess (deficiency) of revenues over expenditures 4,076,225.00 4,076,225.00 4,358,765.59 282,540.59
OTHER FINANCING SOURCES (USES)
Transfers out (3,450,000.00) (3,450,000.00) (3,450,000.00) -
Total other financing source (uses) (3,450,000.00) (3,450,000.00) (3,450,000.00) -
Net change in fund balances 626,225.00 626,225.00 908,765.59 282,540.59
Fund balances - beginning 1,896,317.19 1,896,317.19 1,896,317.19 -
Fund balances - ending $ 2,522,542.19 $ 2,522,542.19 $ 2,805,082.78 $ 282,540.59
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Capital Improvement Sales Tax-Sewer System
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ - $ - $ 654,892.41 $ 654,892.41
Investment revenue - - 674.24 674.24
Total revenues - - 655,566.65 655,566.65
EXPENDITURES
Current:
Development Services - - 41,614.91 (41,614.91)
Total current - - 41,614.91 (41,614.91)
Debt service:
Interest - 18,810.00 18,808.75 1.25
Total debt service - 18,810.00 18,808.75 1.25
Total expenditures - 18,810.00 60,423.66 (41,613.66)
Excess (deficiency) of revenues over expenditures - (18,810.00) 595,142.99 613,952.99
Net change in fund balances - (18,810.00) 595,142.99 613,952.99
Fund balances - beginning - - - -
Fund balances - ending $ - $ (18,810.00) $ 595,142.99 $ 613,952.99
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Capital Improvement Sales Tax-General Improvements
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 13,073.22 $ 13,073.22
Total revenues - - 13,073.22 13,073.22
EXPENDITURES
Debt service:
Administrative charges - - 70.60 (70.60)
Total debt service - - 70.60 (70.60)
Total expenditures - - 70.60 (70.60)
Excess (deficiency) of revenues over expenditures - - 13,002.62 13,002.62
OTHER FINANCING SOURCES (USES)
Asset disposition 16,000.00 16,000.00 - (16,000.00)
Transfers out (16,000.00) (1,261,100.00) (1,265,807.01) (4,707.01)
Total other financing source (uses) - (1,245,100.00) (1,265,807.01) (20,707.01)
Net change in fund balances - (1,245,100.00) (1,252,804.39) (7,704.39)
Fund balances - beginning 1,252,804.39 1,252,804.39 1,252,804.39 -
Fund balances - ending $ 1,252,804.39 $ 7,704.39 $ - $ (7,704.39)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ 15,000.00 $ 15,000.00 $ 35,085.23 $ 20,085.23
Total revenues 15,000.00 15,000.00 35,085.23 20,085.23
EXPENDITURES
Debt service:
Administrative charges 4,120.00 4,120.00 - 4,120.00
Principal 50,100.00 50,100.00 50,100.00 -
Interest 9,008.00 9,008.00 9,007.80 0.20
Total debt service 63,228.00 63,228.00 59,107.80 4,120.20
Total expenditures 63,228.00 63,228.00 59,107.80 4,120.20
Excess (deficiency) of revenues over expenditures (48,228.00) (48,228.00) (24,022.57) 24,205.43
OTHER FINANCING SOURCES (USES)
Transfers out (1,020,000.00) (1,020,000.00) (299,848.33) 720,151.67
Total other financing source (uses) (1,020,000.00) (1,020,000.00) (299,848.33) 720,151.67
Net change in fund balances (1,068,228.00) (1,068,228.00) (323,870.90) 744,357.10
Fund balances - beginning 1,688,460.38 1,688,460.38 1,688,460.38 -
Fund balances - ending $ 620,232.38 $ 620,232.38 $ 1,364,589.48 $ 744,357.10
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,401,760.00 $ 2,401,760.00 $ 2,260,435.25 $ (141,324.75)
Investment revenue 18,425.00 18,425.00 33,242.58 14,817.58
Total revenues 2,420,185.00 2,420,185.00 2,293,677.83 (126,507.17)
EXPENDITURES
Current:
Development Services 765,450.00 765,450.00 767,187.84 (1,737.84)
Total current 765,450.00 765,450.00 767,187.84 (1,737.84)
Debt service:
Administrative charges - - 142.09 (142.09)
Principal 440,000.00 440,000.00 440,000.00 -
Interest 261,892.00 261,892.00 261,890.01 1.99
Total debt service 701,892.00 701,892.00 702,032.10 (140.10)
Total expenditures 1,467,342.00 1,467,342.00 1,469,219.94 (1,877.94)
Excess (deficiency) of revenues over expenditures 952,843.00 952,843.00 824,457.89 (128,385.11)
OTHER FINANCING SOURCES (USES)
Transfers out (495,432.00) (495,432.00) (423,852.20) 71,579.80
Total other financing source (uses) (495,432.00) (495,432.00) (423,852.20) 71,579.80
Net change in fund balances 457,411.00 457,411.00 400,605.69 (56,805.31)
Fund balances - beginning 1,330,685.59 1,330,685.59 1,330,685.59 -
Fund balances - ending $ 1,788,096.59 $ 1,788,096.59 $ 1,731,291.28 $ (56,805.31)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 35,630.00 $ 35,630.00 $ 36,462.89 $ 832.89
Investment revenue 2,125.00 2,125.00 2,301.54 176.54
Total revenues 37,755.00 37,755.00 38,764.43 1,009.43
EXPENDITURES
Current:
Development Services 87,755.00 87,755.00 18,784.82 68,970.18
Total current 87,755.00 87,755.00 18,784.82 68,970.18
Total expenditures 87,755.00 87,755.00 18,784.82 68,970.18
Excess (deficiency) of revenues over expenditures (50,000.00) (50,000.00) 19,979.61 69,979.61
Net change in fund balances (50,000.00) (50,000.00) 19,979.61 69,979.61
Fund balances - beginning 102,265.68 102,265.68 102,265.68 -
Fund balances - ending $ 52,265.68 $ 52,265.68 $ 122,245.29 $ 69,979.61
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 377,516.00 $ 377,516.00 $ 386,316.77 $ 8,800.77
Licenses & permits 4,500.00 4,500.00 3,797.00 (703.00)
Intergovernmental 10,000.00 10,000.00 10,057.98 57.98
Investment revenue 7,500.00 7,500.00 7,294.16 (205.84)
Total revenues 399,516.00 399,516.00 407,465.91 7,949.91
EXPENDITURES
Current:
Public Safety 399,516.00 399,516.00 405,478.00 (5,962.00)
Total current 399,516.00 399,516.00 405,478.00 (5,962.00)
Capital outlay:
Public Safety 115,000.00 115,000.00 101,482.02 13,517.98
Total capital outlay 115,000.00 115,000.00 101,482.02 13,517.98
Total expenditures 514,516.00 514,516.00 506,960.02 7,555.98
Excess (deficiency) of revenues over expenditures (115,000.00) (115,000.00) (99,494.11) 15,505.89
Net change in fund balances (115,000.00) (115,000.00) (99,494.11) 15,505.89
Fund balances - beginning 425,650.50 425,650.50 425,650.50 -
Fund balances - ending $ 310,650.50 $ 310,650.50 $ 326,156.39 $ 15,505.89
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 1,525,000.00 $ 1,525,000.00 $ 1,490,308.96 $ (34,691.04)
Investment revenue 16,800.00 16,800.00 13,608.22 (3,191.78)
Total revenues 1,541,800.00 1,541,800.00 1,503,917.18 (37,882.82)
EXPENDITURES
Capital outlay:
Capital Improvements - - 2,477.56 (2,477.56)
Total capital outlay - - 2,477.56 (2,477.56)
Total expenditures - - 2,477.56 (2,477.56)
Excess (deficiency) of revenues over expenditures 1,541,800.00 1,541,800.00 1,501,439.62 (40,360.38)
OTHER FINANCING SOURCES (USES)
Special assessments 4,400.00 4,400.00 4,482.67 82.67
Transfers out (1,431,045.00) (1,431,045.00) (1,431,045.00) -
Total other financing source (uses) (1,426,645.00) (1,426,645.00) (1,426,562.33) 82.67
Net change in fund balances 115,155.00 115,155.00 74,877.29 (40,277.71)
Fund balances - beginning 191,049.06 191,049.06 191,049.06 -
Fund balances - ending $ 306,204.06 $ 306,204.06 $ 265,926.35 $ (40,277.71)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Miscellaneous $ - $ - $ 20,400.00 $ 20,400.00
Investment revenue 12,500.00 12,500.00 14,297.94 1,797.94
Asset disposition - - 2,000.00 2,000.00
Total revenues 12,500.00 12,500.00 36,697.94 24,197.94
EXPENDITURES
Current:
Public Safety 78,665.00 78,665.00 65,288.50 13,376.50
Total current 78,665.00 78,665.00 65,288.50 13,376.50
Debt service:
Administrative charges 475.00 475.00 319.87 155.13
Principal 935,000.00 935,000.00 935,000.00 -
Interest 365,678.00 365,678.00 365,673.74 4.26
Total debt service 1,301,153.00 1,301,153.00 1,300,993.61 159.39
Capital outlay:
Public Safety 334,000.00 334,000.00 305,495.76 28,504.24
Total capital outlay 334,000.00 334,000.00 305,495.76 28,504.24
Total expenditures 1,713,818.00 1,713,818.00 1,671,777.87 42,040.13
Excess (deficiency) of revenues over expenditures (1,701,318.00) (1,701,318.00) (1,635,079.93) 66,238.07
OTHER FINANCING SOURCES (USES)
Transfers in 2,965,083.00 2,968,533.00 2,926,255.66 (42,277.34)
Transfers out (1,315,875.00) (1,315,875.00) (1,273,748.49) 42,126.51
Total other financing source (uses) 1,649,208.00 1,652,658.00 1,652,507.17 (150.83)
Net change in fund balances (52,110.00) (48,660.00) 17,427.24 66,087.24
Fund balances - beginning 347,532.53 347,532.53 347,532.53 -
Fund balances - ending $ 295,422.53 $ 298,872.53 $ 364,959.77 $ 66,087.24
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 2,631,750.00 $ 2,631,750.00 $ 2,526,823.27 $ (104,926.73)
Investment revenue - - 6,343.99 6,343.99
Total revenues 2,631,750.00 2,631,750.00 2,533,167.26 (98,582.74)
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 2,631,750.00 2,631,750.00 2,533,167.26 (98,582.74)
OTHER FINANCING SOURCES (USES)
Transfers out (2,631,750.00) (2,631,750.00) (2,547,496.95) 84,253.05
Total other financing source (uses) (2,631,750.00) (2,631,750.00) (2,547,496.95) 84,253.05
Net change in fund balances - - (14,329.69) (14,329.69)
Fund balances - beginning 246,292.80 246,292.80 246,292.80 -
Fund balances - ending $ 246,292.80 $ 246,292.80 $ 231,963.11 $ (14,329.69)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 532.35 $ 532.35
Total revenues - - 532.35 532.35
EXPENDITURES
Current:
Public Safety - 10,000.00 8,673.62 1,326.38
Total current - 10,000.00 8,673.62 1,326.38
Total expenditures - 10,000.00 8,673.62 1,326.38
Excess (deficiency) of revenues over expenditures - (10,000.00) (8,141.27) 1,858.73
OTHER FINANCING SOURCES (USES)
Asset disposition - - 10,400.00 10,400.00
Transfers out - (3,450.00) (3,800.00) (350.00)
Total other financing source (uses) - (3,450.00) 6,600.00 10,050.00
Net change in fund balances - (13,450.00) (1,541.27) 11,908.73
Fund balances - beginning 25,882.43 25,882.43 25,882.43 -
Fund balances - ending $ 25,882.43 $ 12,432.43 $ 24,341.16 $ 11,908.73
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 20,409.15 $ 20,409.15
Total revenues - - 20,409.15 20,409.15
EXPENDITURES
Debt service:
Issuance cost - 60,000.00 60,000.00 -
Interest - - 2,550.05 (2,550.05)
Total debt service - 60,000.00 62,550.05 (2,550.05)
Capital outlay:
Capital Improvements - 12,000,000.00 11,948,071.92 51,928.08
Total capital outlay - 12,000,000.00 11,948,071.92 51,928.08
Total expenditures - 12,060,000.00 12,010,621.97 49,378.03
Excess (deficiency) of revenues over expenditures - (12,060,000.00) (11,990,212.82) 69,787.18
OTHER FINANCING SOURCES (USES)
Bond proceeds - - 1,835,000.00 1,835,000.00
Transfers out - - (41,625.71) (41,625.71)
Total other financing source (uses) - - 1,793,374.29 1,793,374.29
Net change in fund balances - (12,060,000.00) (10,196,838.53) 1,863,161.47
Fund balances - beginning 13,516.19 13,516.19 13,516.19 -
Fund balances - ending $ 13,516.19 $ (12,046,483.81) $ (10,183,322.34) $ 1,863,161.47
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Miscellaneous $ - $ - $ 4,023.76 $ 4,023.76
Investment revenue - - 144.42 144.42
Total revenues - - 4,168.18 4,168.18
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - 4,168.18 4,168.18
OTHER FINANCING SOURCES (USES)
Transfers out - (11,091.00) (5,545.41) 5,545.59
Total other financing source (uses) - (11,091.00) (5,545.41) 5,545.59
Net change in fund balances - (11,091.00) (1,377.23) 9,713.77
Fund balances - beginning 10,287.70 10,287.70 10,287.70 -
Fund balances - ending $ 10,287.70 $ (803.30) $ 8,910.47 $ 9,713.77
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 4,078,125.00 $ 4,078,125.00 $ 3,899,036.22 $ (179,088.78)
Investment revenue - - 54,035.41 54,035.41
Total revenues 4,078,125.00 4,078,125.00 3,953,071.63 (125,053.37)
EXPENDITURES
Debt service:
Administrative charges 500.00 500.00 318.00 182.00
Interest 297,610.00 297,610.00 297,610.00 -
Total debt service 298,110.00 298,110.00 297,928.00 182.00
Capital outlay:
Parks and Recreation 159,000.00 159,000.00 332,047.15 (173,047.15)
Total capital outlay 159,000.00 159,000.00 332,047.15 (173,047.15)
Total expenditures 457,110.00 457,110.00 629,975.15 (172,865.15)
Excess (deficiency) of revenues over expenditures 3,621,015.00 3,621,015.00 3,323,096.48 (297,918.52)
OTHER FINANCING SOURCES (USES)
Transfers out (3,025,862.00) (3,025,862.00) (1,870,064.85) 1,155,797.15
Total other financing source (uses) (3,025,862.00) (3,025,862.00) (1,870,064.85) 1,155,797.15
Net change in fund balances 595,153.00 595,153.00 1,453,031.63 857,878.63
Fund balances - beginning 959,010.79 959,010.79 959,010.79 -
Fund balances - ending $ 1,554,163.79 $ 1,554,163.79 $ 2,412,042.42 $ 857,878.63
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Parks/Stormwater Sales Tax-Capital II
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 1,359,375.00 $ 1,359,375.00 $ 1,299,678.79 $ (59,696.21)
Investment revenue 7,500.00 7,500.00 18,333.99 10,833.99
Total revenues 1,366,875.00 1,366,875.00 1,318,012.78 (48,862.22)
EXPENDITURES
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 1,366,875.00 1,366,875.00 1,318,012.78 (48,862.22)
OTHER FINANCING SOURCES (USES)
Transfers out (1,244,487.00) (1,294,487.00) (1,356,299.07) (61,812.07)
Total other financing source (uses) (1,244,487.00) (1,294,487.00) (1,356,299.07) (61,812.07)
Net change in fund balances 122,388.00 72,388.00 (38,286.29) (110,674.29)
Fund balances - beginning 226,065.83 226,065.83 226,065.83 -
Fund balances - ending $ 348,453.83 $ 298,453.83 $ 187,779.54 $ (110,674.29)
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Parks/Stormwater Sales Tax
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 89,211.15 $ 89,211.15
Investment revenue - - 13.74 13.74
Total revenues - - 89,224.89 89,224.89
EXPENDITURES
Current:
Development Services 152,010.00 152,010.00 117,862.57 34,147.43
Total current 152,010.00 152,010.00 117,862.57 34,147.43
Total expenditures 152,010.00 152,010.00 117,862.57 34,147.43
Excess (deficiency) of revenues over expenditures (152,010.00) (152,010.00) (28,637.68) 123,372.32
OTHER FINANCING SOURCES (USES)
Transfers in 30,680.00 41,771.00 34,111.44 (7,659.56)
Total other financing source (uses) 30,680.00 41,771.00 34,111.44 (7,659.56)
Net change in fund balances (121,330.00) (110,239.00) 5,473.76 115,712.76
Fund balances - beginning 321.78 321.78 321.78 -
Fund balances - ending $ (121,008.22) $ (109,917.22) $ 5,795.54 $ 115,712.76
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 68,404.81 $ 68,404.81
Commercial charges 2,455,000.00 2,455,000.00 2,270,030.87 (184,969.13)
Other fees and charges 4,715,000.00 4,715,000.00 4,638,041.02 (76,958.98)
Internal charges - - 5,163.57 5,163.57
Miscellaneous 2,000.00 2,000.00 2,382.82 382.82
Investment revenue 144,000.00 144,000.00 157,449.58 13,449.58
Total revenues 7,316,000.00 7,316,000.00 7,141,472.67 (174,527.33)
EXPENDITURES
Current:
Contractual services 1,063,274.00 1,068,037.54 935,227.27 132,810.27
General operating expenses 418,545.00 415,145.00 373,641.52 41,503.48
Internal service expense 202,078.00 187,078.00 167,132.71 19,945.29
Material and supplies 1,015,098.00 944,033.42 749,702.17 194,331.25
Personnel services 1,883,634.00 1,883,634.00 1,743,415.79 140,218.21
Special projects expense 18,000.00 63,000.00 11,209.41 51,790.59
Total current 4,600,629.00 4,560,927.96 3,980,328.87 580,599.09
Debt service:
Administrative charges 330,114.00 330,114.00 326,254.01 3,859.99
Principal 4,800,000.00 4,800,000.00 4,800,000.00 -
Interest 847,622.00 847,622.00 853,112.76 (5,490.76)
Total debt service 5,977,736.00 5,977,736.00 5,979,366.77 (1,630.77)
Capital outlay:
Capital Improvements 325,000.00 363,138.00 274,220.90 88,917.10
Equipment 63,500.00 81,640.00 257,479.77 (175,839.77)
Total capital outlay 388,500.00 444,778.00 531,700.67 (86,922.67)
Total expenditures 10,966,865.00 10,983,441.96 10,491,396.31 492,045.65
Excess (deficiency) of revenues over expenditures (3,650,865.00) (3,667,441.96) (3,349,923.64) 317,518.32
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 12,222.15 12,222.15
Contributed cap - connect fee 100,000.00 100,000.00 114,009.00 14,009.00
Special assessments - - 2,130.00 2,130.00
Asset disposition - - 72,775.00 72,775.00
Transfers in 3,450,000.00 3,450,000.00 5,147,432.84 1,697,432.84
Total other financing source (uses) 3,550,000.00 3,550,000.00 5,348,568.99 1,798,568.99
Net change in fund balances (100,865.00) (117,441.96) 1,998,645.35 2,116,087.31
Fund balances - beginning 9,061,094.76 9,061,094.76 9,061,094.76 -
Fund balances - ending $ 8,960,229.76 $ 8,943,652.80 $ 11,059,740.11 $ 2,116,087.31
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 16,535.31 $ 16,535.31
Residential charges 4,096,800.00 4,096,800.00 4,021,089.08 (75,710.92)
Commercial charges 2,731,560.00 2,731,560.00 2,586,310.36 (145,249.64)
Other fees and charges 237,780.00 237,780.00 183,582.07 (54,197.93)
Miscellaneous 21,992.00 21,992.00 23,475.39 1,483.39
Investment revenue 132,500.00 132,500.00 187,970.84 55,470.84
Total revenues 7,220,632.00 7,220,632.00 7,018,963.05 (201,668.95)
EXPENDITURES
Current:
Contractual services 3,228,572.00 3,600,934.31 3,384,103.99 216,830.32
General operating expenses 361,507.00 363,064.87 348,309.30 14,755.57
Internal service expense 196,480.00 196,480.00 210,530.83 (14,050.83)
Material and supplies 1,333,200.00 1,342,022.69 1,373,895.39 (31,872.70)
Personnel services 347,628.00 347,628.00 297,173.85 50,454.15
Special projects expense - - 138.00 (138.00)
Total current 5,467,387.00 5,850,129.87 5,614,151.36 235,978.51
Debt service:
Administrative charges - - 450.00 (450.00)
Issuance cost - 147,162.50 147,162.50 -
Principal 620,000.00 620,000.00 9,905,000.00 (9,285,000.00)
Interest 337,532.00 337,532.00 391,961.19 (54,429.19)
Total debt service 957,532.00 1,104,694.50 10,444,573.69 (9,339,879.19)
Capital outlay:
Capital Improvements 1,370,000.00 978,028.44 143,869.79 799,229.93
Equipment 200,000.00 208,450.00 301,955.89 (93,505.89)
Total capital outlay 1,570,000.00 1,186,478.44 445,825.68 705,724.04
Total expenditures 7,994,919.00 8,141,302.81 16,504,550.73 (8,398,176.64)
Excess (deficiency) of revenues over expenditures (774,287.00) (920,670.81) (9,485,587.68) (8,599,845.59)
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 21,798.74 21,798.74
Bond proceeds - - 9,394,508.50 9,394,508.50
Asset disposition 10,000.00 10,000.00 94,548.10 84,548.10
Transfers in 1,020,000.00 1,020,000.00 301,230.13 (718,769.87)
Total other financing source (uses) 1,030,000.00 1,030,000.00 9,812,085.47 8,782,085.47
Net change in fund balances 255,713.00 109,329.19 326,497.79 182,239.88
Fund balances - beginning 6,417,651.87 6,417,651.87 6,417,651.87 -
Fund balances - ending $ 6,673,364.87 $ 6,526,981.06 $ 6,744,149.66 $ 182,239.88
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ 104,921.00 $ 104,921.00 $ 41,345.58 $ (63,575.42)
Residential charges 2,779,373.00 2,779,373.00 2,791,172.73 11,799.73
Commercial charges 49,500.00 49,500.00 48,949.08 (550.92)
Transfer station charges 1,503,903.00 1,503,903.00 1,659,046.97 155,143.97
Other fees and charges 78,235.00 78,235.00 44,384.80 (33,850.20)
Miscellaneous 179,000.00 179,000.00 158,187.25 (20,812.75)
Investment revenue 50,000.00 50,000.00 32,131.52 (17,868.48)
Total revenues 4,744,932.00 4,744,932.00 4,775,217.93 30,285.93
EXPENDITURES
Current:
Contractual services 1,919,770.00 2,264,639.47 2,166,405.78 98,233.69
General operating expenses 12,094.00 7,948.47 4,899.00 3,049.47
Internal service expense 444,533.00 369,533.00 325,799.38 43,733.62
Material and supplies 260,238.00 236,383.09 201,075.90 35,307.19
Personnel services 1,241,224.00 1,241,224.00 1,213,516.95 27,707.05
Special projects expense 138,086.00 136,586.00 138,192.73 (1,606.73)
Total current 4,015,945.00 4,256,314.03 4,049,889.74 206,424.29
Debt service:
Administrative charges - - 103.44 (103.44)
Principal 165,455.00 165,455.00 165,454.69 0.31
Interest 116,545.00 116,545.00 97,682.01 18,862.99
Total debt service 282,000.00 282,000.00 263,240.14 18,759.86
Capital outlay:
Equipment 1,135,000.00 1,135,052.93 1,138,852.93 (3,800.00)
Total capital outlay 1,135,000.00 1,135,052.93 1,138,852.93 (3,800.00)
Total expenditures 5,432,945.00 5,673,366.96 5,451,982.81 221,384.15
Excess (deficiency) of revenues over expenditures (688,013.00) (928,434.96) (676,764.88) 251,670.08
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 10,568.50 10,568.50
Asset disposition 100,000.00 100,000.00 7,200.00 (92,800.00)
Advances from other funds 1,052,500.00 1,052,500.00 855,000.00 (197,500.00)
Total other financing source (uses) 1,152,500.00 1,152,500.00 872,768.50 (279,731.50)
Net change in fund balances 464,487.00 224,065.04 196,003.62 (28,061.42)
Fund balances - beginning 1,514,245.06 1,514,245.06 1,514,245.06 -
Prior period adjustment (302.08) (302.08) (302.08)
Fund balances - ending $ 1,978,429.98 $ 1,738,008.02 $ 1,709,946.60 $ (28,061.42)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Concession revenues $ 45,177.00 $ 45,177.00 $ 48,269.49 $ 3,092.49
Usage fees 496,200.00 496,200.00 436,789.55 (59,410.45)
Miscellaneous 1,000.00 1,000.00 1,041.37 41.37
Investment revenue 4,300.00 4,300.00 3,788.56 (511.44)
Total revenues 546,677.00 546,677.00 489,888.97 (56,788.03)
EXPENDITURES
Current:
Contractual services 55,404.00 55,837.00 55,659.27 177.73
General operating expenses 3,940.00 3,590.00 2,193.76 1,396.24
Internal service expense 43,128.00 43,128.00 44,856.36 (1,728.36)
Material and supplies 100,326.00 99,993.00 99,762.85 230.15
Personnel services 393,192.00 394,902.00 365,060.32 29,841.68
Special projects expense 3,985.00 2,525.00 909.83 1,615.17
Total current 599,975.00 599,975.00 568,442.39 31,532.61
Total expenditures 599,975.00 599,975.00 568,442.39 31,532.61
Excess (deficiency) of revenues over expenditures (53,298.00) (53,298.00) (78,553.42) (25,255.42)
OTHER FINANCING SOURCES (USES)
Asset disposition - - 1,450.00 1,450.00
Transfers in 53,298.00 103,298.00 75,732.84 (27,565.16)
Total other financing source (uses) 53,298.00 103,298.00 77,182.84 (26,115.16)
Net change in fund balances - 50,000.00 (1,370.58) (51,370.58)
Fund balances - beginning 96,179.08 96,179.08 96,179.08 -
Fund balances - ending $ 96,179.08 $ 146,179.08 $ 94,808.50 $ (51,370.58)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 4,250.00 $ 4,250.00
Concession revenues 59,450.00 59,450.00 49,603.74 (9,846.26)
Usage fees 321,581.00 321,581.00 245,615.49 (75,965.51)
Miscellaneous 650.00 650.00 190.31 (459.69)
Investment revenue 5,175.00 5,175.00 2,324.12 (2,850.88)
Total revenues 386,856.00 386,856.00 301,983.66 (84,872.34)
EXPENDITURES
Current:
Contractual services 93,490.00 111,418.85 115,142.84 (3,723.99)
General operating expenses 2,160.00 2,335.00 1,875.01 459.99
Internal service expense 45,923.00 45,923.00 60,568.40 (14,645.40)
Material and supplies 174,913.00 156,809.15 144,752.30 12,056.85
Personnel services 643,716.00 641,216.00 583,008.69 58,207.31
Special projects expense 82,755.00 85,255.00 64,930.32 20,324.68
Total current 1,042,957.00 1,042,957.00 970,277.56 72,679.44
Capital outlay:
Equipment - - 8,000.00 (8,000.00)
Total capital outlay - - 8,000.00 (8,000.00)
Total expenditures 1,042,957.00 1,042,957.00 978,277.56 64,679.44
Excess (deficiency) of revenues over expenditures (656,101.00) (656,101.00) (676,293.90) (20,192.90)
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 30,809.61 30,809.61
Transfers in 656,101.00 664,285.00 646,480.88 (17,804.12)
Total other financing source (uses) 656,101.00 664,285.00 677,290.49 13,005.49
Net change in fund balances - 8,184.00 996.59 (7,187.41)
Fund balances - beginning 163,088.91 163,088.91 163,088.91 -
Fund balances - ending $ 163,088.91 $ 171,272.91 $ 164,085.50 $ (7,187.41)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Concession revenues $ 102,550.00 $ 102,550.00 $ 80,509.16 $ (22,040.84)
Usage fees 486,495.00 486,495.00 414,217.35 (72,277.65)
Miscellaneous 5,000.00 5,000.00 63,507.00 58,507.00
Investment revenue 3,700.00 3,700.00 1,834.17 (1,865.83)
Total revenues 597,745.00 597,745.00 560,067.68 (37,677.32)
EXPENDITURES
Current:
Contractual services 103,651.00 103,651.00 105,173.58 (1,522.58)
General operating expenses 6,693.00 6,068.00 1,807.81 4,260.19
Internal service expense 10,444.00 10,244.00 10,610.06 (366.06)
Material and supplies 140,464.00 141,089.00 121,274.48 19,814.52
Personnel services 456,657.00 455,157.00 378,775.58 76,381.42
Special projects expense 41,935.00 43,635.00 32,485.82 11,149.18
Total current 759,844.00 759,844.00 650,127.33 109,716.67
Total expenditures 759,844.00 759,844.00 650,127.33 109,716.67
Excess (deficiency) of revenues over expenditures (162,099.00) (162,099.00) (90,059.65) 72,039.35
OTHER FINANCING SOURCES (USES)
Transfers in 162,099.00 162,099.00 90,519.20 (71,579.80)
Total other financing source (uses) 162,099.00 162,099.00 90,519.20 (71,579.80)
Net change in fund balances - - 459.55 459.55
Fund balances - beginning 119,631.45 119,631.45 119,631.45 -
Fund balances - ending $ 119,631.45 $ 119,631.45 $ 120,091.00 $ 459.55
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 798,955.00 $ 798,955.00 $ 798,955.00 $ -
Investment revenue - - 1,098.12 1,098.12
Total revenues 798,955.00 798,955.00 800,053.12 1,098.12
EXPENDITURES
Current:
Contractual services 251,905.00 293,674.75 293,648.75 26.00
General operating expenses 5,450.00 2,419.00 2,261.18 157.82
Material and supplies 86,200.00 110,709.25 111,801.65 (1,092.40)
Personnel services 318,200.00 318,200.00 325,253.92 (7,053.92)
Total current 661,755.00 725,003.00 732,965.50 (7,962.50)
Capital outlay:
Equipment 137,200.00 104,052.00 103,951.48 100.52
Total capital outlay 137,200.00 104,052.00 103,951.48 100.52
Total expenditures 798,955.00 829,055.00 836,916.98 (7,861.98)
Excess (deficiency) of revenues over expenditures - (30,100.00) (36,863.86) (6,763.86)
OTHER FINANCING SOURCES (USES)
Compensation for damages - - 61,298.75 61,298.75
Total other financing source (uses) - - 61,298.75 61,298.75
Net change in fund balances - (30,100.00) 24,434.89 54,534.89
Fund balances - beginning 158,087.54 158,087.54 158,087.54 -
Fund balances - ending $ 158,087.54 $ 127,987.54 $ 182,522.43 $ 54,534.89
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental $ - $ - $ 11,587.27 $ 11,587.27
Charges for services 14,240.00 14,240.00 1,026.56 (13,213.44)
Internal charges 1,500,000.00 1,500,000.00 1,418,948.74 (81,051.26)
Miscellaneous - - 637.14 637.14
Investment revenue 2,500.00 2,500.00 4,547.40 2,047.40
Total revenues 1,516,740.00 1,516,740.00 1,436,747.11 (79,992.89)
EXPENDITURES
Current:
Contractual services 291,076.00 315,718.17 295,712.97 20,005.20
General operating expenses 5,050.00 5,050.00 7,238.48 (2,188.48)
Internal service expense 7,989.00 7,989.00 7,989.00 -
Material and supplies 519,105.00 479,016.83 433,592.41 45,424.42
Personnel services 693,520.00 693,520.00 695,345.71 (1,825.71)
Total current 1,516,740.00 1,501,294.00 1,439,878.57 61,415.43
Capital outlay:
Equipment - 15,446.00 15,445.15 0.85
Total capital outlay - 15,446.00 15,445.15 0.85
Total expenditures 1,516,740.00 1,516,740.00 1,455,323.72 61,416.28
Excess (deficiency) of revenues over expenditures - - (18,576.61) (18,576.61)
Net change in fund balances - - (18,576.61) (18,576.61)
Fund balances - beginning 325,511.56 325,511.56 325,511.56 -
Fund balances - ending $ 325,511.56 $ 325,511.56 $ 306,934.95 $ (18,576.61)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Charges for services $ 30,000.00 $ 30,000.00 $ 12,494.86 $ (17,505.14)
Internal charges 4,124,017.00 4,124,017.00 4,202,107.39 78,090.39
Miscellaneous - - 333.63 333.63
Investment revenue 62,500.00 62,500.00 49,615.49 (12,884.51)
Total revenues 4,216,517.00 4,216,517.00 4,264,551.37 48,034.37
EXPENDITURES
Current:
Contractual services 4,407,300.00 4,807,200.00 4,365,186.47 442,013.53
General operating expenses 22,500.00 22,300.00 13,521.09 8,778.91
Material and supplies 2,500.00 2,500.00 231.59 2,268.41
Special projects expense 1,500.00 1,800.00 1,590.05 209.95
Total current 4,433,800.00 4,833,800.00 4,380,529.20 453,270.80
Total expenditures 4,433,800.00 4,833,800.00 4,380,529.20 453,270.80
Excess (deficiency) of revenues over expenditures (217,283.00) (617,283.00) (115,977.83) 501,305.17
OTHER FINANCING SOURCES (USES)
Transfers out (26,350.00) (26,350.00) (26,350.00) -
Total other financing source (uses) (26,350.00) (26,350.00) (26,350.00) -
Net change in fund balances (243,633.00) (643,633.00) (142,327.83) 501,305.17
Fund balances - beginning 2,142,925.79 2,142,925.79 2,142,925.79 -
Fund balances - ending $ 1,899,292.79 $ 1,499,292.79 $ 2,000,597.96 $ 501,305.17
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 659,590.00 $ 659,590.00 $ 650,721.69 $ (8,868.31)
Investment revenue 38,625.00 38,625.00 36,324.90 (2,300.10)
Total revenues 698,215.00 698,215.00 687,046.59 (11,168.41)
EXPENDITURES
Current:
Contractual services 628,215.00 828,215.00 843,075.22 (14,860.22)
General operating expenses 70,000.00 70,000.00 46,514.19 23,485.81
Total current 698,215.00 898,215.00 889,589.41 8,625.59
Total expenditures 698,215.00 898,215.00 889,589.41 8,625.59
Excess (deficiency) of revenues over expenditures - (200,000.00) (202,542.82) (2,542.82)
Net change in fund balances - (200,000.00) (202,542.82) (2,542.82)
Fund balances - beginning 1,154,288.30 1,154,288.30 1,154,288.30 -
Fund balances - ending $ 1,154,288.30 $ 954,288.30 $ 951,745.48 $ (2,542.82)
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Internal charges $ 395,985.00 $ 395,985.00 $ 365,341.62 $ (30,643.38)
Investment revenue 37,500.00 37,500.00 35,656.21 (1,843.79)
Total revenues 433,485.00 433,485.00 400,997.83 (32,487.17)
EXPENDITURES
Capital outlay:
Equipment 590,420.00 590,420.00 531,848.72 58,571.28
Total capital outlay 590,420.00 590,420.00 531,848.72 58,571.28
Total expenditures 590,420.00 590,420.00 531,848.72 58,571.28
Excess (deficiency) of revenues over expenditures (156,935.00) (156,935.00) (130,850.89) 26,084.11
OTHER FINANCING SOURCES (USES)
Asset disposition 30,000.00 30,000.00 100,000.00 70,000.00
Total other financing source (uses) 30,000.00 30,000.00 100,000.00 70,000.00
Net change in fund balances (126,935.00) (126,935.00) (30,850.89) 96,084.11
Fund balances - beginning 1,561,913.04 1,561,913.04 1,561,913.04 -
Fund balances - ending $ 1,434,978.04 $ 1,434,978.04 $ 1,531,062.15 $ 96,084.11
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 190,000.00 $ 190,000.00 $ 236,343.56 $ 46,343.56
Investment revenue 25,000.00 25,000.00 25,628.23 628.23
Total revenues 215,000.00 215,000.00 261,971.79 46,971.79
EXPENDITURES
Current:
Development Services 138,885.00 138,885.00 140,333.56 (1,448.56)
Total current 138,885.00 138,885.00 140,333.56 (1,448.56)
Capital outlay:
Capital Improvements 266,115.00 266,115.00 10,000.00 256,115.00
Total capital outlay 266,115.00 266,115.00 10,000.00 256,115.00
Total expenditures 405,000.00 405,000.00 150,333.56 254,666.44
Excess (deficiency) of revenues over expenditures (190,000.00) (190,000.00) 111,638.23 301,638.23
OTHER FINANCING SOURCES (USES)
Transfers in 190,000.00 190,000.00 146,680.01 (43,319.99)
Total other financing source (uses) 190,000.00 190,000.00 146,680.01 (43,319.99)
Net change in fund balances - - 258,318.24 258,318.24
Fund balances - beginning 1,138,073.00 1,138,073.00 1,138,073.00 -
Fund balances - ending $ 1,138,073.00 $ 1,138,073.00 $ 1,396,391.24 $ 258,318.24
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, 2020
Variance with
Original Final Actual Final Budget
REVENUES
Investment revenue $ - $ - $ 17,419.29 $ 17,419.29
Total revenues - - 17,419.29 17,419.29
EXPENDITURES
Capital outlay:
Capital Improvements - 567,500.00 724,847.62 (157,347.62)
Total capital outlay - 567,500.00 724,847.62 (157,347.62)
Total expenditures - 567,500.00 724,847.62 (157,347.62)
Excess (deficiency) of revenues over expenditures - (567,500.00) (707,428.33) (139,928.33)
Net change in fund balances - (567,500.00) (707,428.33) (139,928.33)
Fund balances - beginning 626,041.19 626,041.19 626,041.19 -
Fund balances - ending $ 626,041.19 $ 58,541.19 $ (81,387.14) $ (139,928.33)
Budgeted Amounts
See Independent Auditors' Report.
City of Cape Girardeau
Transportation Sales Tax IV
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended June 30, 2020
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
125
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR THE
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 the City of Cape Girardeau, Missouri’s major federal program for the year ended June
30, 2020. The City of Cape Girardeau, Missouri’s major federal program is identified in the
summary of auditors’ results section of the accompanying Schedule of Findings and Questioned
Costs.
Management’s Responsibility
Management is responsible for compliance with 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 the City of Cape Girardeau,
Missouri’s major federal program based on our audit of the types of compliance requirements
referred to above. We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicabl e 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 the major
federal program. However, our audit does not provide a legal determination of the City of Cape
Girardeau, Missouri’s compliance.
126
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
the major federal program for the year ended June 30, 2020.
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 the major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for the 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
March 6, 2021
127
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,
2020, 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
March 6, 2021.
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
128
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 an
instance of noncompliance or other matter that is required to be reported under Government
Auditing Standards and which is described in the Schedule of Findings and Questioned Costs as
item 2020-001.
City of Cape Girardeau’s Response to the Finding
City of Cape Girardeau’s response to the finding identified in our audit is described in the
accompanying Schedule of Findings and Questioned Costs. City of Cape Girardeau’s response
was not subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
March 6, 2021
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 Housing
Development Commission -
Emergency Solutions Grant Program 14.231 20-714-E 71,274$
19-714-E 84,684 155,958
TOTAL U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT 155,958$
U.S. DEPARTMENT OF JUSTICE:
Bulletproof Vest Partnership Program 16.607 BUBX15079622 1,588$
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 2019-DJ-BX-0331 16,117$
2018-DJ-BX-0309 513 16,630
TOTAL U.S. DEPARTMENT OF JUSTICE 18,218$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2020
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
129
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 13-077A-2 2,984$
19-077A-1 226,274
20-077A-2 437,831 667,089$
Highway Planning and Construction Cluster:
Highway Planning and Construction 20.205 TAP-1500(023)9,781$
MO-81-0013 105,236
TEAP032 8,000
Passed Through Illinois Department of
Transportation -
Highway Planning and Construction Cluster:
Highway Planning and Construction 20.205 SPR-PL-3000(48)2,289
Total Highway Planning and Construction Cluster 125,306
Passed Through Missouri Department of
Transportation -
Highway Safety Cluster:
State and Community Highway Safety 20.600 19-PT-02-062 4,592$
20-PT-02-005 876
20-CP-09-005 62,806
19-CP-09-003 85,554 153,828
National Priority Safety Programs 20.616 19-M5TR-03-005 54,466
Total Highway Safety Cluster 208,294
Alcohol Open Container Requirements 20.607 20-154-AL-006 5,767$
19-154-AL-068 2,253 8,020
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 1,008,709$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2020
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
130
Federal
CFDA Program
Federal Grantor/Pass-Through Grantor Program Title Number Number
U.S. DEPARTMENT OF THE TREASURY:
Passed Through Cape Girardeau County
Coronavirus Relief Fund 21.019 269,454$
TOTAL U.S. DEPARTMENT OF THE
TREASURY 269,454
U.S. DEPARTMENT OF HOMELAND SECURITY:
Passed Through the Missouri State Emergency
Management Agency
Emergency Mangement Performance Grants 97.042 EMK-2020-EP-00004-23 2,339
Presidential Declared Distaster Assistance
to Individuals and Households - Other Needs 97.050 FEMA-4435-DR-MO 18,562$
FEMA-4451-DR-MO 167,373 185,935
Passed Through Missouri Office of
Homeland Security - Homeland Security
Grant Program 97.067 EMW-2019-SS-00039 15,703$
EMW-2018-SS-00044 5,352
EMW-2017-SS-00047 4,761 25,816
Direct - Staffing for Adequate Fire and Emergency
Response 97.083 EMW-2018-FH-00494 27,195
Law Enforcement Officer Reimbursement
Agreement Program 97.090 HSTS0216HSLR823 15,000
TOTAL U.S. DEPARTMENT OF HOMELAND
SECURITY 525,739$
TOTAL FEDERAL AWARDS 1,808,624$
(1) Identified major program.
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2020
Disbursements
The Accompanying Notes to the Schedule of Expenditures of Federal Awards
Are an Integral Part of This Report.
131
132
City of Cape Girardeau, Missouri
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2020
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, 2020. 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.
133
City of Cape Girardeau, Missouri
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2020
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? X yes 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
134
Identification of major programs.
CFDA Number Name of Federal Program
20.106 Airport Improvement 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:
2020-001 Budgeted Expenditures:
Criteria: According to Section 67.080 RSMo, no expenditure of
public monies shall be made unless it is authorized in the
budget.
Condition: Actual expenditures exceeded budgetary limits by
$164,831.79 in the Transportation sales Tax IV Fund and
$172,865.15 in the Park/Stormwater Sales Tax – Capital II
Fund.
Cause: The City had the fund balance for the expenditures in these
two funds, but were unaware they did not budget enough
until after year end.
Effect: The City authorized expenditures in excess of budgetary
limits.
Recommendation: The City Council should legally adopt the budget for all
funds and monitor the budget more closely. If additional
sources of funds become available throughout the year, the
original budgets should be amended to allow the expenditure
of such monies.
Views of Responsible
Officials and Planned
Corrective Action: The City Council will to the best of their ability,
communicate with the City Finance Department and comply
with statutes and correct the findings as noted in the financial
statements.
3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS:
No findings or questioned costs were noted that are required to be reported.
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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 30, 2020
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
1. FINANCIAL STATEMENT FINDINGS:
No findings were noted that are required to be reported.
2. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS:
No Federal findings were reported in the prior year.