Loading...
HomeMy WebLinkAbout2002-2003.AuditReportCITY OF CAPE GIRARDEAU, MISSOURI FINANCIAL STATEMENTS June 30, 2003 BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants CITY OF CAPE GIRARDEAU MISSOURI TABLE OF CONTENTS FINANCIAL SECTION Paec No. INDEPENDENT AUDITORS' REPORT 1_2 REQUIRED SUPPLEMENTAL INFORMATION MANAGEMENTS DISCUSSION AND ANALYSIS 3-11 BASIC FINANCIAL, STATEMENTS GOVERNMENT -WIDE FINANCIAL STATEMENTS STATEMENT OF NET ASSETS 12-13 STATEMENT OF ACTIVITIES 14-15 FUND FINANCIAL STATEMENTS GOVERNMENTAL FUNDS FINANCIAL STATEMENTS BALANCE SHEET 16-17 RECONCILATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS 18 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 19 RFCONCILATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 20 PROPRIETORY FUNDS FINANCIAL STATEMENTS .� STATEMENT OF NET ASSETS 21 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN .. FUND NET ASSE"TS 22-23 STATEMENT OF CASH FLOWS 24-25 FIDUCIARY FUNDS FINANCIAL STATEMENTS STATEMENT OF FIDUCIARY NET ASSETS 20 NOTES TO FINANCIAL STATEMENTS 27-67 REQUIRED SUPPLEMENTARY INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL-GENERAL 68 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL-AIRPORT 69 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL- PARK & RECREATION 70 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES 1N FUND BALANCES - BUDGET AND ACTUAL- TRANSPORT ATION SALES TAX _ TRUST FUND 71 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- DEBT SERVICE 72 NONMA.JOR FUND FINANCIAL STATEMENTS STATEMENT OF REVENUES, EXPENDED JRF,S, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FLOOD PROTECTION 73 STATEMENT OF REVENUES, EXPENDITURES, .AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- VISION 2000 74 S'1-ATEMENT OF REVENUES, EXPENDITURES, AND .. CHANGES IN FUND BALANCES -BUDGET AND ACTUAL CON VENT ION AND TOURISM 75 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - DOWNTOVk N BUS [NESS DISTRICT 70 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -HEALTf1 77 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND .ACTUAL - MOTOR FUEL TAX 78 STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL-CAPITAL IMPROVEMENT SALES TAX - FLOOD CONTROL 79 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGETAND ACTUAL- CAPITAL IMPROVEMENT SALES TAX- WATER SYSTEM IMPROVEMENT Sp STATEMENT OF REVENUES, EXPENDITURES, AND - CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- CAPITAL IMPROVEMENT SALES TAX - SEWER SYSTEM IMPROVEMENT 81 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - TRANSPORTATION SALES TAX _ TRUST FUND II 82 STATEMEN"F OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- GENERAL CAPITAL IMPROVEMENTS S3 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL- STREET IMPROVEMENTS 84 STA FEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PARK IMPROVEMENTS S5 STATEMENT OF REVENUES, EXPENDITURES_ AND CHANGES IN FUND BALANCES - BUDGET AND ACFUAL - COMMUNITY DEVELOPMENT BLOCK GRANT PROJECT 86 STATEMENT OF REVENUES, EXPENDITURES, AND .. CHANGES IN ECND BALANCES - BUDGET AND ACTUAL -FAU GRANT PROJECTS 87 STAT EVENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL CORP FLOOD CONTROI, PROJECTS 88 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -SEWER 89 S'I'.AI'EMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND .ACTUAL- WATER 90 STATEMENT OF REVENUES, EXPENDITURES, AND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SOLID WASTE 91 STATEMENT OF REVENUES, EXPENDITURES, AND ACTUAL FLEETMANAGEMENT CHANGES IN FUND BALANCES BUDGET AND ACTUAL- GOLF COURSE 92 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND CHANGES IN FUND BALANCES -- BUDGET .AND ACTUAL -SOFTBALL. COMPLEX 93 STATEMENT OF REVENUES, EXPENDITURES, AND STATEMENT OF REVENUES, EXPENDITURES, AND ,. CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - MANAGEMENT INFORMATION SYSTEMS 94 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES N FUND BALANCES -BUDGET AND ACTUAL FLEETMANAGEMENT 95 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - FRINGE BENEFITS 96 STATEMENT OF REVENUES, EXPENDITURES, AND ,. CHANGES IN FUND BALANCES -BUDGET .AND ACTUAL RISK MANAGEMENT 97 S'I A I FMENT OF REVENLES, EXPENDITLRES. AND CI-IANGES IN FUND BALANCES -BUDGET AND ACI UAL- EQUIPMENT REPLACEMENT 98 ANNUAL FEDERAL FINAXCI.AL COMPLIANCE SECTION REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 99-100 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOFERNMFNT AUDIT/NG STANDARDS 101-102 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 103-105 NOTES TO SCHEDULE OF EXPENDITURE OF FEDERAL AWARDS 106 SCHEDULE OF FINDINGS AND QUES'l IONED COSTS 107-108 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 109 BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants 4018 Sycamore 16 So. Silver Springs Road Y [tape Cairo, Illinois 62914 Cape Girardeau, Missouri 63703 Jackson, Missouri 63755 Telephone (618) 734-3300 Telephone (573) 334-7971 Telephone (573) 243-3991 Facsimile (618) 734-3303 Facsimile (573) 334-8875 Facsimile (573) 243-3186 INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri ' We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Cape Girardeau, Missouri (the City), as of and for the year ended June 30, 2003, which ' collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United y States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion the financial statements referred to above present fairly. in all material respects, the financial position of 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, 2003, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1, the City adopted the provisions of the Governmental Accounting Standards Board Statement No. 34, Rask Financial Statements - and Managements Discu.csfoa and Anuh sfs—for State caul Local Govemments; as of June 30, 2003. In accordance with Government Auditing Standards, we have also issued a report dated November 7, 2003, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The management's discussion and analysis and budgetary comparison information on pages 3 through 11 and 68 through 72, are not a required part of the basic financial statements, but are supplementary information required by the accounting principles generally accepted in the ' United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was performed for the purpose of forming an opinion on the financial statements that collectively comprise the City of Cape Girardeau's basic financial statements. The individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States. Local Governments, and Non -Profit Organimtions, and is not a required part of the basic financial statements of City of Cape Girardeau, Missouri. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects, in relation to the basic financial statements taken as a whole. BEUSSINK, HEY, ROE, SEABAUGH & STRODER, LLC. /�jtsadsuy /sC, i0 S{R L.L.G Cape Girardeau, Missouri November 7, 2003 CITY OF CAPE GIRARDEAU, MISSOURI Management's Discussion and Analysis The discussion and analysis of the City of Cape Girardeau s financial performance provides an overall review of the City's financial activities for the fiscal year ended June 30, 2003. 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 l Fghliahts o The assets of the City of Cape Gtrurdcau exceeded its liabilities at the close of the most recent fiscal year by $86,234,270 (net assets). Of this amount, 532,423,557 (unrestricted net assets) may be used to meet the city's ongoing obligations to citizens and creditors. o As of the close of the current fiscal year, the City of Cape Girardeau's governmental funds reported combined ending fund balances of S31_846,186. Approximately 50 percent of this total amount, $15,967,943 is available for spending at the government's discretion (unmsened fund balance). o At the end of the current fiscal year, unreserved fund balance for the general find was $1_032,066 or 6.3 percent official general fund expenditures and transfers. Fund balance mw,, rd for emergencies for the general fund was S2,927,721 or 17 2 percent of total general fund expenditures and transfers. o I lie City of Capc Girardeau s total long -trim debt decreased by S�J)92 775 f6.2 percent) during the current fiscal year The kev factor in this dccrcaw s+zs the 89,160,520 in principle pavmems. Ovcnica ofire Fina,nial St_�cmcnts This discussion and unulvsis arc intended to bene as an ino'oduc tion to the City of Cape Girardeau', basic (l..anciul statements_ 'flte ( it, of Capc GimrdueaS husic Financial statements comprise three componcuG: I ) government -vide 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. Co, ernment-wide financial statements. The govcmment-wide financial statements are designed to provide readers with a broad overview of the City of Cape Girardeau's finances, to a manner suralar to a private -sector business. 'Ihe statement of net assets presents information on all the City's assets and hatelhics, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating_ The statement of tch' itte, presents information showing how the city's net assets changed during We most recent fiscal year. All changes in the net assets arc reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (cg., uncollected taxes and earned but unused vacation lease), Both of government wide financial statements distinguish functions of the City of Cape Girardeau that are principally supported by razes and interges c mnnente l revenu cs (governmental activities) too. other function -s that are intended to recover all or a significant portion of their costs tluouoh user fees and charges (business -type aeric ities). The go, emmental activities of the City of Cape Girardeau include ad ani rostra tivc scrvlces. developmental services, parks and recreation, public solely. and public storks. The husiness- type activities of the City include sewer, water, and solid waste nuhdes and -,off course and softball complex operations, the government -side Financial statements can be found on pages 12 to I- ofthis report. CITY OF CAPE GIRARDEAU, MISSOURI Fund financial statements. A fund is a grouping ofrelated 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 fimd accounting to ensure and deniousnnte compliance with finance -related legal requirements, All ofthe funds of the Cit, can be divided into three c ate settesgovernmental funds, proprietary funds, and fidudary funrls_ Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the govemment-wide financial statements. However, unlike the gocemnrent-nide 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 narroeer than that of the goveminent -wide financial statements, it is useful to compare the information presented for;over uncntal funds with similar information presented for govemmcntal activities in the govemment-wide financial statenwa s. By doingso, readers may hater understand the lona term impact of the government's near term financing decisions. Both the gov nnmental fund balance sheet and the gavcrliterate] fluid statement of revenues, eRpenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between govemmart l fit and governmental activities_ The Cup of Cape Girardeau maintains 22 individual go, emnxntal fonds. 1.for aratio u is presented separately in the govcmtire and fund balance sheet and in the gocermtental fund statement of receaLie s, espe ndItaIaS. and changes in fund balances for the general. airport, parks and recreation, Transportation tom 11 and data service funds- which are considered_ or have been designated to be major funds ofthc City- Flatn from the other nox°emmental funds aro combined into a single- aggregated frescntation_ The City of Cape Girardeau adopts atmual app rap rime it b udgets for at its tuoveuuttenteI funds, cstoo ing its renter system improve meats capital project fund, which has a project length budget. Budgetary comparison statements have been provided for all major governmental funds as part of financial statements to demonstrate compliance with this budget. Budgetary comparison statements for the remaining governmental funds are present as supplemental information. The basic governmental Pond financial statements can be found on pages 16 to 20 of this report. Pmorietar, 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 govemment-wide financial statements. the City used enterprise funds to account for its sewer, water. and solid waste utilities and its golf course and softball complex operations. Internal service funds are an accounting device used to accumulate and allocate costs interrmlly among the City's various functions. The City uses internal sen ice funds to account for operation of its nwnuscment information systems, fleet management, self-insured employee benefits and workmen's compensation programs, and its internal equipment (casing program_ Proprietary funds provide the same type of information as the govemment-widc financial statements, only in more detail. The proprietary fund fium,ial statements provide separate information for the sewer, water, and solid waste utilities and golf course and softball complex operations. All of these are considered, or have been dc,iguetcd to be major funds of the City. 'lire internal sen ice funds are combined into a single, aggregated presentation in the proprietary fund financial statements_ @e basic proprietary fund financial statements can be hand on pages 21 to 25 of this report. Budgetary comparison statements for all the proprietary funds are present as supplemental informahon Votes to the 1=financial State Hent, The notes provide additional information that is essential to a full understanding ofthe data provided in the govemment-wide and fund financial statements. The notes to the financial statements can be found hcginning page 27 ofthis report. CITY OF CAPE GIRARDEAU, MISSOURI Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the Cty of Cape Girardeau, assets exceeded liabilities by S86,234,270. The largest portion of the City's net assets (52.5 percent) reflects its investment in capital assets (land, buildings, machinery, and equipment). less related debt used to acquire those assets that is still outstanding. The CIL, uses these capital assets to provide services to citizens, consequently, these assets are not available for future spending. Although the C iry's investment in its capital assets is reported net of related debt, it should be noted that the I'esources needed to repay this debt must be provided free other sour(es, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net assets (9.6 per represent resources that are subject to external restrictions on hour they may be used. The remaining balance of unrestricted net assets ($32.42:,557) may be used to meet the city's ongoing obligations to citizens and creditors. At the end of the cut rent fiscal year, the Cly is able to report positive balances in all three categories effect assets-. both for the government a, a hole,aswell as for its separate governmental and busirl activities. I lie same situation was true of the prior year. City of Cape Girardeau's Net Assets Business - Governmental type Activity activities Total Current and other assets 35,172,921 15,443,932 Invested In capital assets, 50,616,853 Capital assets 30,092,334 45497 093 88,910,550 _ _._ 119,002,884 3,018.301 0,313.620 Total assets 65265,255 6,494.128 104,354482 Total net assets 169,619,737 55,009,522 86,234.270 Long term liabilities outstanding 28,484,900 44,013465 72498,365 Other liabilities 5,555608 5,331495 10,887,103 Total liabilities 34,040,508 49,344,960 83,385465 Net assets'. Invested In capital assets, Net of related debt - 45497 093 45.497.093 Restricted 5,295,318 3,018.301 0,313.620 Unrestricted 25,929429 6,494.128 32,423.557 Total net assets 31,224,747 55,009,522 86,234.270 5 CITY OF CAPE GIRARDEAU, MISSOURI GovemmenteI aettvioes. Govemmental activities increased the City of Cape Girardeau s net assets by $5,879.860 thereby accounting for 47,9 per cent of the total growth in the net assets of the City. Key elements of this increase are as follows' City of Cape Girardeau's Change in Net Assets Governmental Scorers type activities activities Total Revenues: - - - -- Program revenue. Charges for service 3,499,174 10500,306 13,999,480 Operating grants and contributions 789,060 76451 865,511 Capital grants and contributions 3,247,603 1,581,285 4,820.888 General revenues. Property taxes 2,135.604 - 2,135,604 Sales taxes 15,292.064 - 15,292,064 Other taxes 6,668,728 - 6,668,728 Other 958.271_ 1,551.874 Total revenues 32.590.504 _593_,60_3_ 12,751845 45,342.149 Expenses. Administrative 3971 271 3,971,271 Development Services 1.663087 - 1,663.087 Interest and other costs 1.400.715 - 1,400.715 Parks and Recreation 2,756.060 - 2.756068 Public Safety 8665.488 - 8,665.488 Public Works 2.369.477 - 2,369,477 Sewer - 4,108.588 4,106588 Water - 4912,233 4,912,233 Solid Waste _ 2.283361 2.283 361 Golf Course _ 523,007 523,007 Softball Complex _ 405,814 405,814 Total expenses 20.826.106 12,233,003 33,059,109 Increase in net assets before transfers 11764,398 518,642 12,283,040 Transfers _ (5,884,530( 5,884,538 Increase in net assets 5.879.860 6,403,180 12.283.040 Net as Sets 7 1.2002 25.344,887 48,606,343 73,951,230 Net essets 6130'2003 31.224 747 55,009,523 86234,270 -I hlis the lint year that the City of Cupc Girardeau is presenting a changes in net assets schedule- In future Year tee still assess the Cher" on a corepara ti cc hast. with Prior year. 6 CITY OF CAPE GIRARDEAU, MISSOURI The chart below illustrates the Surplus or net subsidy required for different, key city programs Softball Complex MO Golf Course d Solid Waste Sewer Y Expense O Revenue Water Public Works Public Safety Parks & Recreation Development So, Administrative - 1 500 000 3.000000 4, 5D0.000 6,000,000 7,500,000 9,000,000 The illustration above makes it clear that all the govermnental acGvitics and some ofthe business -type activities ofthe city required a subsidy by taxpayers while some ofthe business -type activities wcr, self- ' supporting. Revenues by Source— " Governmental Activities The chart to the right summarizes the sources of revenue (tont government activities- the three main SourceS of revenue and their share of total governmental revenues are sales tax (46,9-r), other fares (20.4;0) and charges for service (10 7".). A little over halfthe sales tax revenue is general fund revenue and represents 48 6 percent ofthe total eemail turd ..venues. The remaining sales taxes are un nansportatinn, scaler, and \Pater piojcctc The general fund accaurt, for 59 ofthe sen ice charge revenue- This represents 13'96 of the total ecncral fund revenues. Orher ta,Aes ,r.r. Service CITY OF CAPE GIRARDEAU, MISSOURI Business-rvpe activlines . Business -type activities increased the City of Cape Girardeau'-, netcsscte by $6.403,180 thereby accounting for 52 1 per cent of the total growth in the net assets ofthe City_ Transfers from governmental activities totaling $1,884,538 accounted hot the 91.9%of the increase. Transfers of water system improvements totaling $3,163,403 and sales tax revenue far bond payments totaling $2,088,062 make up most ofthe total transfers. Revenues for business -type activiies Financial Analvsis of the City's Funds As noted earlier, the City of Cape Girardeau uses fund acoountine to ensure and demonstrate compliance with (mance-related legal requirements. Govan mental funds. The focus ofthe City's so veramental funds is to provide information on near-term 11111011, outflols, and balances of spendable resources- Such information is useful in assessing the City's financing requirements. In particular. unreserved fund balance may serve as a useful measure of We city's net resources available for spending at the end ofa fiscal year. As of lune 30, 3003, the City, governmental funds reported combined ending fund balances cf$28,294 204, a decrease of 53,309.1'_5 in comparison with the prior year. Approximately 56.4 percent IS 15.967,943) constitutes unreserved fund balance, lhlch Is avallahle for spending at the city- s discretion. The remainder of the fund halanca is reserved to indicate that it I, not avallahle for new spending because it has cheadshccn committed I1 to meet the City's chattered required m,ereenc} reserves (53.851,355), 31 to fund purchase orders open at the end of the vCct (S3, I483]}1.31 to at aside fund balance not currcntic avallahle for cxpCudtturC cquul it 1011, let,, loans due from other Ciq funds IS 163;94414) n, set aside fund basic, not currcntic available for expenditure equal ni tun_ teen loans duc from Renaissance Aircraft LLC for purchase of an airport manufacturing facility from the City ($1990.514), 5) to pay debt service (S834,850) - and 6) restricted to a specific use ($863,073). The general fund is the chief operating fiord of the City. At the end of fiscal year cndat lune 30, 2003, unreserved fund balance of the eeneral fold was $1,032,066 while total fund balance was S5,904.748. As a measure of the eeneral fund's liquidity, it may be useful to compare both at,, fund balance and total fund balance to total fund expenditures. l)nrC5ClVC fund balance represents 6 1 percent of total general fund expenditures. however. included in the reserved fund balance is $2,927,721, which had hccn reserved to meet the City Charter's emergency reserve requirement. 'Phis amount represents 173 percent of total general fiord expenditures and could be used if an emergency was declared by the City Council. I he fund balance of the Cit}' of Cape Giraideau's general fund increased by $172,560 during the fiscal%car ending June 30, 2003. Key factors include. o Sales tax revenue grew 1.6 percent over the previous cast, which was $111,037 (1.4%) less Ihan projected for the adopted bude,cL This continued the trend ofbelow normal sales tax _growth over the last four vears. o Franchise tax revenue grew 5 6 percent over the previous year. which was S 148,746 is 4't,.) more than projected for the adopted budget_ Phis resulted from high natural gas prices, a cold winter, and higher cable rates. o Municipal Court revenue decreased 7.4 Percent over the previous year which was 5133.962 (13.1 °6) less than projected Cor thebudeet. Thovastheresuhof personnel vacancies in the police department. o $67.068 in el ant revenue to cover the costs oft,o additional police officers required for security at Weaupott. o Ependiores for puhlic transportation, which is a portion of developmental "I I Ices cost', decreased 10 percent over the precious year which was $"78,887 82 tx Financial Analvsis of the City's Funds As noted earlier, the City of Cape Girardeau uses fund acoountine to ensure and demonstrate compliance with (mance-related legal requirements. Govan mental funds. The focus ofthe City's so veramental funds is to provide information on near-term 11111011, outflols, and balances of spendable resources- Such information is useful in assessing the City's financing requirements. In particular. unreserved fund balance may serve as a useful measure of We city's net resources available for spending at the end ofa fiscal year. As of lune 30, 3003, the City, governmental funds reported combined ending fund balances cf$28,294 204, a decrease of 53,309.1'_5 in comparison with the prior year. Approximately 56.4 percent IS 15.967,943) constitutes unreserved fund balance, lhlch Is avallahle for spending at the city- s discretion. The remainder of the fund halanca is reserved to indicate that it I, not avallahle for new spending because it has cheadshccn committed I1 to meet the City's chattered required m,ereenc} reserves (53.851,355), 31 to fund purchase orders open at the end of the vCct (S3, I483]}1.31 to at aside fund balance not currcntic avallahle for cxpCudtturC cquul it 1011, let,, loans due from other Ciq funds IS 163;94414) n, set aside fund basic, not currcntic available for expenditure equal ni tun_ teen loans duc from Renaissance Aircraft LLC for purchase of an airport manufacturing facility from the City ($1990.514), 5) to pay debt service (S834,850) - and 6) restricted to a specific use ($863,073). The general fund is the chief operating fiord of the City. At the end of fiscal year cndat lune 30, 2003, unreserved fund balance of the eeneral fold was $1,032,066 while total fund balance was S5,904.748. As a measure of the eeneral fund's liquidity, it may be useful to compare both at,, fund balance and total fund balance to total fund expenditures. l)nrC5ClVC fund balance represents 6 1 percent of total general fund expenditures. however. included in the reserved fund balance is $2,927,721, which had hccn reserved to meet the City Charter's emergency reserve requirement. 'Phis amount represents 173 percent of total general fiord expenditures and could be used if an emergency was declared by the City Council. I he fund balance of the Cit}' of Cape Giraideau's general fund increased by $172,560 during the fiscal%car ending June 30, 2003. Key factors include. o Sales tax revenue grew 1.6 percent over the previous cast, which was $111,037 (1.4%) less Ihan projected for the adopted bude,cL This continued the trend ofbelow normal sales tax _growth over the last four vears. o Franchise tax revenue grew 5 6 percent over the previous year. which was S 148,746 is 4't,.) more than projected for the adopted budget_ Phis resulted from high natural gas prices, a cold winter, and higher cable rates. o Municipal Court revenue decreased 7.4 Percent over the previous year which was 5133.962 (13.1 °6) less than projected Cor thebudeet. Thovastheresuhof personnel vacancies in the police department. o $67.068 in el ant revenue to cover the costs oft,o additional police officers required for security at Weaupott. o Ependiores for puhlic transportation, which is a portion of developmental "I I Ices cost', decreased 10 percent over the precious year which was $"78,887 CITY OF CAPE GIRARDEAU, MISSOURI (22.1 %) less than the adopted budget as a result of less usage of the program. o The Cis spent 5251 738 (2.8%) less for clnplovice salaries than was budgeted as a result ofmultiple vacancies throughout the City. to 9lie Cit- spent S80.067 (11.6%) more for employee health coverage than was budgeted as a result of a mid -sear 45% increase in prcmimns. The additional costs were partially mitigated by personnel vacancies. The debt service burns have a total fund balance of $1,110.0 19, all of which is reserved to pay debt service costs and to meet emergency reserve requirements. "fhe net decrease in fund balance during Fiscal year ending June 30, 2003 in the debt set ice funds was 51,677.485- 'fhe primary cause of the decreased fund balance was the use of accumulated funds for the early retirement or several outstanding bond issues_ Proprietary funds _ l lie Circ of Cape Girardeau's enttelic So funds are all presented as major funds for purposes of this report. As a result, all statements related to the enterprise funds arc presented at the government -wide level. The City does have Internal Scrvfen (ands, which are reported in the fund statements. General Fund Budgetary highlights Diflerenees between (hr original operating budget and the final amended Spurning bush -st were 5432.000 (2.5° it over the original budget amount. The chana_cs can be summarized as fol lows: o $64.000 for' additional police offmcus for airport recruit, o $13.000 for additional health insurance cost and unanticipated unemploy hent claims in the parks maintenance division. o Additional ad m innu'otive costs of 511,000 to cover special election and severance pay costs n $25475010 Cover public safety capital cspcndinres sshich included purchases of 9 adjacent properties to the police station and additional police and fire equipment. o 55,750 to cover the purchase of additional park land. o $20,000 to cover the cost ofadditional transfers to the equipment replacement fund to cover the additional costs of equipment purchases made during the \'Car. to $41.500 to cover the cost if additional transfers to the golf fund to cover anticipated revenue shortfalls. .$220,000 of the above appropriations were horded by health fund transfers. Unanticipated grants and donations funded $104,500 of the above appropriations. The remainder of the appropriations used general fund balances - Capital Assets and Debt Administration vital. Assets_ The City of Cape Girardeau's interlinear in capital assets for its govcrmnental and business -type activities as of June 30, 2003, unicorns to $119,002,883 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvemen Ls, muchinery and equipment, and infrastructure completed during the current fiscal year. The City Iws not at completed its inventopand anulvsls of its Toads, highways, and bridges as capital assets of the city. As a result the values that these assets represent are not vet a part of this report. The GASB has granted additional fluid for the CIS to accomplish this task. We believe it will be accomplished for the report un fiscal year eni ingJune 30. 2M City of Cape Glrardea us Capital Assets (net of depreciation) Business Governmental type Activity activities Total Land 3.905.023 248109 4.233.132 Buildires and systems Improvements other loan buLtlmgs Equipment Infrastructure Construction in progress Total 7 342 990 3 201.730 10 544.720 3,409,5C7 60.151.944 63.561.451 2.142,343 2,026.845 4.169.166 9.728.059 - 9 726.859 3,483,612 23.281 922 26-165 534 30.092,334 88.910.550 119.002884 CITY OF CAPE GIRARDEAU, MISSOURI As this is the first year that this type of report is included in the CIt) ''S annual financial report, a comparison with prior year resul Isis not provided. Such a comparison twill be provided in future years. City Capital Asians Major capital asset events during the current fiscal year included the following: u CunstrucGmt costs kdaling S1,412,270 on approved transportation soles tax projects were incurred this year. This tax was ori__inally approved to complete a specific list of street projects, which also included amounts for street repair and overlay, sidewalk construction and repair, and street light installation and upgrades. o Construction costs totaling $3,163,403 on ' water system projects were incurred this year. A capital improvement sales tax was ousinally approved in 1996 to ,. complete a specific list of improvements to the water s}'stem totaling approximately $26500,000. The above costs represent Pat t of those improvements. Themost si_nlficaut project on the original list teas the expansion end upnrade of water plant =1 at an estimated cost of S 17,700.000. Most of the projects on the list are now complete. At the end of the scar, the expansion and upgrade of stater plant 'I gas appro,niarc IN 90°„ complete. I Construction costo Mauro appro urnatck 5700.000 tcere also incurred on street projects not included on the transportation sales ins list ofprojects. o Construction cos[. mtnling approximateh S485-000 were also incumd on hood and stollnwatcr contt'ul project. to Construction costs totaling S2,527,3 12 on sexier system projects were incurred this year. A capital improvement sales tax ass originally approved in 1994 to complete a specific list of improvements to the sewer system. Over $33,350,000 in revenue bonds have been issued through the State Revolving Loan Program to complete these projects. Most ofthe projects on the list are now complete. At the end of the year, only the Ranchito Relief Sewer. which was 90% complete, and the South Ramsey Branch Lift Station were not complete. Additional information about the City's capital assets can be found in note ? on page?? of this report. Lon—let it debt. At the end of the fiscal year, the City of Cape Girardeau had total bonded debt outstanding of S77287.36i Ofthis amount $425,000 is secured by the full fahh and credit of the City and $69,644,290 is occulted by revenues' of the sewor and water fund, and capital improvement sales taxes- The repayment ofthe remaining debt is subject to annual appropriations. City of Cape Girardeau's Outstanding Debt Year ended 2003 Business - Governmental type Activity activities _ Total. Special obligation bonds 1,923,117 1,283,721 3.206.838 Revenue bonds 22,872,546 45771.744 68644.290 Certificates of participation 4,264237 - 4,264237 General obligation bonds 425.000 - 425.000 Leasehold revenue bonds 747,000 747,000 30231900 47055465 77,287,365 "fhe City's total debt decreased by $5,083.775 (6 2 1 v) during the year. The Ree Coeur in the chane was the earls retirement of general obligation bonds totalins $450,000, sewer revenue bonds totaling $430"000 and certificates of participation murine $1.190.000. The ooh initiates in debt during the fiscal .car represented $3.202.618 in special obligation bonds issued to construct approximately CITY OF CAPE GIRARDEAU, MISSOURI 51,580,000 in street projects. The remaining proceeds "are used in conjunction with cash on hand to retire $2,340,000 of outstanding debt. More information about the City's outstanding debt can be found in the notes to the financial statements on page ??. 6conomlc Factors and the Next Year's Budgets and Rates 'rhe city continues to experience the effects ofa slow economy and loss of some of its regional retail draw. Since the City is heavily dependent on sales tax revenue for support of its general fund services, any changes that impact the growth of local retail sales can have a dramatic Impact oil the Cily's ability to Pond services in the future al their current levels- Stale and local laws restrict the City's ability to increase fees to cover the costs of providing specific services to the users of those services Slot,economy. Sales fix is a significant revenue source of the city and is a barometer of the local economy_ Drilling the last four years, sales tax revenue grew at an average rale of 1.196 while inflation grew at an average rate of Zoll In the previous four yearn. sales tax grew at an average rate of 4.0°S. while inflation grew at an average rale of3.3%. "this slow down in sales growth began in the fiscal year ending June 3Q 2001, a year in which there was no sales tax grmvth_ 'fhe economv had began to improve slightly since that year as sales rax growth in fiscal year 2002 and 3003 were5-had 1.61/0 respectively. However, in the current 3004 fiscal }'car, (here has been I iill c or no sales lux growth_ Regional_ ,fail center, Through most of the 1990" Cape Girardeau continued to be a regional retail center for much of Southeast Missouri mad Southern Illinois. During the ]one, part (if ill I990's Cape Girardcuu bcguu to lose its share of the retail market to other cities in the region as these eines added 'additional retail oullcLs in their comm un itics. SALES TAX COMPARISON 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. Since calendar scar 1999 the City's share ofthose sales has decreased from 44.3 percent to 41.3 percent. Activity has taken place since the end of the fiscal year which, hopefully, will help reverse this trend. Currently three new retail outlets that should have regional drawing power are planning to open up new operations in Cape Girardeau. Slate and l ncal law. Currently state law prohibits the City from increasing any pernut or license fees without a vote, thus making it difficult for the City to cover the increasing costs of providing services associated with these revenues_ 'rhe City Charter prohibits any annual user fee increase of greater than 5% without a vote of the people. Although tltis provision works woil with the more significant user fees such as water and sewer rates, it makes raising smaller user fees more cumbersome_ This provision has hada greater impact on the Parks and Rec¢alion Fund where the City Itas declined to make small increases to cover increased costs, as It convenience to its users_ The only park and recreation fees that have been increased since 1997 have been fees at the golf course. Budget for fiscal rear coding June 30 3004 and Financial_ conciliar. The above factors, and many more, helped limit the fiscal 2004 annual budget Altin ueb the budget was balanced, this was accomplished with a salary freeze and by not adequately funding equipment and maintenance needs. The City's current financial position is strong In that ithis more than adequate financial resources to cover existing claims on those resources. However. the f nanciul conditien is less than desirable. Without a dramatically improved economy or ries, revenue sources, it still not be able m provide the current level of services in future years_ Requests for In for in a l ion This fuaaucial mpert iv dcslgncd to'i'o It, a amoral cea'nee ofthc Ch, of Cape ( a f" z finances tore all Ihesv%eilh ar intercel in the chds fmoncc,,. potations conamins am oflh: iufnrmauon proclJad n Oai+repon are rcr u"t, lore addilional Gueuciul iId Iiwrian should he uddressed to the I i aance )IrKLOC Cu, of Cape Girardcuu. PO It,,, 61 7. (':.rr, Girardcaa A10 69703-061]. 1999 2000 2001 2002 Cape Girardeau 44.30 43.5% 42.2% 41.3% Carbondale 26.5% 26.4% 27.2% 277% Jackson 8.5% 9.0% 93% 9.4% permute 70% 7.3% Z3% 72°0 Sikeston 137% 13.6`/0 14.U, 14.4% 1000% 100.0% 100.0% 100.0% 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. Since calendar scar 1999 the City's share ofthose sales has decreased from 44.3 percent to 41.3 percent. Activity has taken place since the end of the fiscal year which, hopefully, will help reverse this trend. Currently three new retail outlets that should have regional drawing power are planning to open up new operations in Cape Girardeau. Slate and l ncal law. Currently state law prohibits the City from increasing any pernut or license fees without a vote, thus making it difficult for the City to cover the increasing costs of providing services associated with these revenues_ 'rhe City Charter prohibits any annual user fee increase of greater than 5% without a vote of the people. Although tltis provision works woil with the more significant user fees such as water and sewer rates, it makes raising smaller user fees more cumbersome_ This provision has hada greater impact on the Parks and Rec¢alion Fund where the City Itas declined to make small increases to cover increased costs, as It convenience to its users_ The only park and recreation fees that have been increased since 1997 have been fees at the golf course. Budget for fiscal rear coding June 30 3004 and Financial_ conciliar. The above factors, and many more, helped limit the fiscal 2004 annual budget Altin ueb the budget was balanced, this was accomplished with a salary freeze and by not adequately funding equipment and maintenance needs. The City's current financial position is strong In that ithis more than adequate financial resources to cover existing claims on those resources. However. the f nanciul conditien is less than desirable. Without a dramatically improved economy or ries, revenue sources, it still not be able m provide the current level of services in future years_ Requests for In for in a l ion This fuaaucial mpert iv dcslgncd to'i'o It, a amoral cea'nee ofthc Ch, of Cape ( a f" z finances tore all Ihesv%eilh ar intercel in the chds fmoncc,,. potations conamins am oflh: iufnrmauon proclJad n Oai+repon are rcr u"t, lore addilional Gueuciul iId Iiwrian should he uddressed to the I i aance )IrKLOC Cu, of Cape Girardcuu. PO It,,, 61 7. (':.rr, Girardcaa A10 69703-061]. BASIC FINANCIAL STATEMENTS 1 1 1 1 t i t 1 1 i 1 1 1 It 1 t i t 1 City of Cape Girardeau Statement of Net Assets For the Year Ended June 30, 2003 12 Primary Government Governmental Business -type Activities Activities Total ASSETS Cash and cash equivalents $ 6,933,483 $ 351,980 $ 7,285 463 Investments 18,277,502 3,789,234 22,066,736 Taxes receivable 2,670,123 - 2,670,123 Utility charges receivable - 1,237,629 1,237,629 Special assessments receivable 1,952,627 340.300 2292,927 Interest receivable 314,345 17,638 331,983 Other receivables 2,186,517 44,792 2,231,309 Motor fuel receivable 124,229 - 124,229 Grants receivable 531,305 20,109 551,414 Internal balances 1,655,657 (1,655,657) - Inventcry 71,741 207,139 278,880 Prepaid items 455,391 535,119 990,510 Restricted cash and cash equivalents - 7,624,127 7,624,127 Restricted investments - 2,931,523 2,931,523 Land 3,985,023 248,109 4,233,132 Buildings 7,342,990 3.201,730 10,544,720 Other improvements 3,409,507 60,151,944 63,561451 Equipment 2,142,343 2,026,845 4,169,188 Infrastructure 9,728,859 - 9,728,859 Construction in process 3.483.612 23,281,922 26,765,534 Total assets $ 65265254 $ 104354483 $ 169.619.737 12 I 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Cape Girardeau Statement of Net Assets Far the Year Ended June 30, 2003 13 Primary Government Governmental Business -type Activities Activities Total LIABILITIES Accounts payable 1,165,738 790,455 1,956.193 Salaries and benefits payable 835 206 116,046 951,252 Interest payable 637,216 862,190 1,499.406 Other liabilities 121,100 389,775 510,875 Estimated Gams 427,397 - 427.397 Due to other governments 113,983 26,029 140,012 Unearned revenues 107,966 - 107,966 Estimated landfill post closure costs - 105,000 105,000 Notes payable 400,000 - 400.000 Current portion long-term debt. Revenue bonds payable 770,000 2,877,000 3,647,OOD Certficiates of participation payable 370,000 - 370,000 Leasehold revenue bonds payable 27,000 - 27,000 General obligation refunding bds payable 425,000 - 425,000 Special obligation bonds payable 155,000 165,000 320,000 Long-term debt net of current portion: Revenue bonds payable 22,102,546 42,894,744 64,997,290 Cedfidates of participation payable 3,894,237 - 3,894,237 Leasehold revenue bonds payable 720,000 - 720,000 General obligation refunding fids payable - - - Special obligation bonds payable 1,768,118 1,118,721 2,886,839 Total liabilities 34,040,507 49,344,960 83.385 467 NET ASSETS Invested in capital assets, net of related debt - 45,497,093 45,497,093 Restricted for Debt Service 834,850 1,016,667 1,851,517 Restricted for depr and replacemnt - 707,000 707,000 Restricted for emergency fund 3,855,355 1294,635 5,149,990 Restricted for Mausoleum 83,072 - 83,072 Restricted for River Campus Protect 522,041 - 522,041 Unrestricted 25,929,429 6,494,128 32,423,557 Total net assets $ 31,224,747 $ 55,009,523 $ 86,234.270 13 III 1 1 1 1 1 1 1 If 1 1 If 1 1 1 1 If Y i City of Cape Girardeau Statement of Activities 14 For the Year Ended June 30, 2003 Net(Expense) Revenue and Program Revenues Changes in Net Assets Primary Government Operating Capital Grants Charges for Grants and and Governmental Business -type Function slPrograms Expenses Services Contributions Contributions Activities Activities Total Primary government: Governmental activities: Administrative 3.971,271 1,733.661 230,218 116,283 (1,891,109) - (1,891,109) Development Services 1663,087 307,144 200,937 219,518 (935,488) - (935,488) Interest and other costs 1,400]15 - - - (1,400,715) - (1,400,715) Parks and Recreation 2,756,068 531,807 14 1,197,300 (1,025,949) - (1,026,947) Public Safety 8,665,488 918.063 357,890 28,416 (7,361,119) - (7,361,119) Publlcworks 2,369,477 8,500 - 1,686,086 (674,891) - (674,891) Total governmental activities 20,826,106 3,499,175 789,059 3,247,603 (13,290,269) - (13,290,269) BusinesstypeActivities. Golf Course 523.007 453453 - 286,423 - 216.859 216,869 Sewer 4,108,589 2,585,046 6,857 872,365 - (644,321) (644,321) Softball Complex 405,814 142,924 101 - - (262,789) (262,789) Solid Waste 2,283,361 2,386,871 - 13,848 - 117,358 117,358 Water 4,912,233 4,932,012 69,493 408,649 - 497,921 497.921 Total business -type activities 12,233,004 10,500,306 76,451 1,581,285 (74,962) (74,962) Total primary government 3 33 059 110 $ 13,999,481 $ 865,510 $ 4,828,888 (13,290,269) (74,962) (13,365,231) 14 A 1 i 1 i 4 1 1 1 1 1 1 1 i 1 1 1 1 1 City of Cape Girardeau Statement of Activities For the Year Ended June 30, 2003 General revenues Property taxes 2,135,601 Net(Expense) Revenue and 2,135,601 Program Revenues Sales taxes Changes in Net Assets - 15,292,064 Primary Government Franchise taxes Operating Capital Grants - 2,905,247 Charges for Grants and and Governmental Business -type Fu nctionsll'u, rams Expenses Services Contributions Contributions Activities Activities Total Primary government: 1234,390 - Governmental activities. Merchant license taxes 910,325 General revenues Property taxes 2,135,601 - 2,135,601 Sales taxes 15,292.064 - 15,292,064 Franchise taxes 2,905,247 - 2,905,247 Motor fuel taxes 1,414,117 - 1,414,117 Convention and tourism taxes 1234,390 - 1,234,390 Merchant license taxes 910,325 - 910,325 Liquor license tax 56,237 - 56,237 Othertaxes 148,412 - 148,412 Unrestricted grants and contributions 49,014 - 49,014 Unrestricted investment earnings 890,334 582,945 1473.279 Gain on to of assets 18,925 10,658 29,583 Transfer (5,884,538) 5,884,538 - Total general revenues 19,170.128 6,478,141 25,648,269 Change In net assets 5,879,859 6,403,179 12283,038 Net assets - beginning 25,344,888 48,606,344 73,951,232 Net assets - ending $ 31224747 $ 55,009,523 $ 86,234,270 15 i 1 i f t 1 1 1 Y t 11 1 11 1 1 1 1 1 1 City of Cape Girardeau Balance Sheet Governmental Funds For the Year Ended June 30, 2003 General Airport Park and Trans Sales Tax Debt Service Other Total Recreation Trust Fund II Governmental Governmental Funds Funds Current assets: Cash and cash equivalents $ 196,900 $ 150,030 $ 10,211 $ 356,468 $ 456,046 $ 5,521,724 $ 6,691,379 Investments 2,061,]20 60,000 109,866 3,]02,8]9 649,455 8,959.149 15,543,069 Real estate taxes 33,501 - - - 11,196 8,048 52,745 Personal property taxes 10,082 - - - 3,414 1,799 15,295 Sales tax 609,748 - - 298.868 - 304,742 1,213,358 Franchise taxes 1,275,824 - - - - - 1,275,824 Hotel 8 motel tax - - - - 45,]]2 45,]]2 Restaurant lax - - - - 67,130 67,130 Special assessments 145,947 - - 102,921 448.234 1,255,524 1,952,626 Other 30,893 2,081,225 57,006 - - 527 2,169,651 Interest 305,519 92 - - 1,486 7,248 314,345 Motor fuel tax - - - - - 86471 86,471 Vehicle license lees - - - - - 13,876 13,676 Motor vehicle sales lax - - - - - 23,882 23,882 Grants 109,271 62,760 144 - - 359,130 531,305 Other funds 6,696 - - - - - 6,696 Inventory 151 16,771 - - - 45,102 62,024 Prepaid Items 92,833 24,379 781 - - 30,890 148,883 Total Current assets: 4,879,085 2,395,257 178,008 4,461,136 1,689.831 16,]31,014 30,214,331 Noncurrent assets'. Advances to other funds 1,633,944 - - - - - 1,633,944 Total Noncurrent assets'. 1,633,944 - - - - - 1,633,944 Total assets $ 6.513.029 $ 2.395.257 $ 1]8.008 _L__4 461 136 $ 1.569.831 _$ 16,731.014 -1__11_8_48275 16 l f ( Y i 1 1 1 1 1 1 1 1 1 f 1 i 1 1 City of Cape Girardeau Balance Sheet Governmental Funds For the Year Ended June 30, 2003 General Airport Park and Trans Sales Tan Debt Service Other Total Recreation Trust Fund II Governmental Governmental Funds Funds LIABILITIES AND FUND BALANCES Current liabilities'. Accounts payable $ 292,761 $ 96,281 $ 63.514 S 54,979 $ - $ 464,627 $ 972,162 Salaries and benefits payable 45.704 5,055 30,464 - - 672 81,895 Other liabilities 70.509 37,012 13,509 - - - 121,030 Due to other governments 322 - - - - 2,207 2,529 Payable to other funds - - - - - 6,210 6,210 Unearned revenues 19,163 33,798 55,005 - - - 107,966 Deferred revenues 179,822 - - 102,921 459,812 1,405,030 2,147,58] Total Current liabilities: 608,281 172,146 162,492 157.900 459,812 1.878,746 3,439,377 Non current liabilities. Advances from other funds - 114,695 - - - - 114,695 Total Non current liabilities: - 114,695 - - - - 114,695 Total liabilities 608,281 286,841 162,492 157,900 459,812 1,878,746 3,554,072 Fund balances_ Reserved 4,872,682 2,161,516 5,110 649,584 1,110,019 3.527.349 12,326,260 Unreserved 1,032,066 (53,100) 10,406 3,653,652 - 11,324,919 15,967,943 Total fund balances 5,904,748 2,108.416 -15 516 4,303,236 1,110,019 14,852,268 28,294,203 Total liabilities and fund balances $ 6,513,029 $ 2,395,257 $ 178.008 $ 4,461,136 $ 1,569,831 $ 16,731,014 $ 31,848,275 17 1 1 1 1 11 1 1 1 1 It f 1 i 1 k 1 1 1 1 City of Cape Girardeau Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Assets For the Year Ended June 30, 2003 Fund balances of governmental funds $ 28,294,203 Amounts reported for governmental activities In the statement of net assets Are different because' Capital assets used In governmental activities are not 28,084,319 financial resources and, therefore, are not reported In the funds. Longterm liabilities, including bonds payable, are not due (29,854,606) and payable in the current period and therefore are not reported in the funds. Internal service funds are used by management to charge 3,915,389 the costs of management information systems, fleet management, employee fringe benefits, workmen's compensation, and equipment replacement to Individual funds. The assets and liabilities of the internal service funds are included in governmental activities In the statement of net assets Other long-term assets are not available to pay for current- 2,147,584, period expenditures and therefore, are deferred in the funds Other accrued expenses which are not payable from current- (1,362.142) period revenues are included In governmental activities in the statement of net assets Net assets of governmental activities $ 31.224 ]4] 18 1 1 1 f 1 1 1 Y 1 f 1 4 i Y Y 1 1 1 / City of Cape Girardeau Statement of Revenues. Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2003 General match, Par4 and Trans sales Tax oehl Sells. other Total Recreation Trust Fund Governmental Governmental Fund, Fund. REVENVES Taees E 12,069,948 E E S 3.738567 $ 426973 5 5349,018 $ 215Bg506 License. fl pe-fix 1M4fi9 1]53 1,083,222 Inlergorernmenlal 550,589 195.14] 14 - M211 2,00].]96 2,763759 Charges for services 352.161 745978 478836 - 3,414 1,580389 malchages 711015 711,015 Fars and music ]fie, 343 _ _ - 768,343 Miscellaneous 135,934 169069 2,637 2],150 89190 @3,980 n..sonsi revenue 1629fi3 7,165 2951 92,569 75819 462,540 80400] Frivol as.eamenfis 7,094 - 11,014 179,672 274,083 471,763 TOUl revenue. 15038.516 1,117,359 414,431 3842,150 719. 125 B,Ie6796 3[.190.984 E%PENOITVRES Current. Adminishative 1,753528 1423,1]2 - 6,317 412,548 3,595,565 Oavalopmenl5enice. 1545.781 - - - 1URTHS 10501 Se 'Y's and Rermortuon 1,301,169 - 1,192966 - - 2496.137 Elfin 3aley 8517,329 - - 230.233 0747562 PuhucwaMs 2,014,245 _ - _ 116,938 ?131,103 oehl5eMce: Adminishedre charges - - 18,659 69.411 80,070 Call premium - _ _ x,575 4,575 I'lerest 1023 21431 157 431871 860 792 1324,000 cosi - - - 5524 25,945 3141 -pal 1d Is 704 - 3,697 300 730000 4,446,661 Capital pulley - 2 ]14,499 - $,9]5,169 8, 289,6fi8 Total expenditures 15.141,92 1450,307 1.193,125 2]14499 4,16.,252 8.533405 32,805.120 Excess (deficiency) of revenues over expend0um. 696,984 13a0,9ul (I06687) 1,52],651 (3.4x4,52]) (344609) (2,614,136 OTHER FINANCING SOURCES (USES) Transrers our (1,866,924) _ - (5.372595) (7,239,519) layl 1]42500 326,720 ]092]2 200,000 1427168 536.95] 4.540.617 Rand proceeds - _ _ 339,874 15]9,208 1,919.082 other loan proceeds - - - 83 030 83 830 Acer Orford- 1 W0 1000 Trust Other fi nancin. sources and uses J524,424) 324720 709 272 200 000 1767042 (3111,erm (fi94 9901 Npl Change In Nnd halances 172,560 (16 228) SB5 1121651 (1,fi]].485) (3516209) (3,309126) Fund halances-fishurm9 5732188 2124644 1a,931 2,5]5585 2]8]504 18, 36B,477 31,603.329 Fund hallows-endm9 E 5,904]48 $ 2106416 5 15516 5 1,303236 E 1.110019 E 14852268 $ 28294.203 19 I 1 1 1 1 1 1 i If t i i 1 1 1 1 i 1 If holy or cape ebareeau Reconciliation of Statement of Revenues. Esmond, and Gnenges in Funal tt alances of Governmental Fend. no the Statement of Activities For the Veer Ended Jon. 30, Ti Net change In fund balances to,yl governmental funds IS 3.]09,1 46) sported for gova'nmental ata vtllas In Ne stalament of ac Lvl6es are nuRemm beta use .comment sandy repos capnul umlzys as is pendimres. 4418414 Thompson. In me sbta mem or epiinlles 'he cosi or chop assets s allocated ovannelr estimated useful holy and ported ed gene es n p,f,ense Trio a the andi dy ii omit.'ouvava exceeded depredation espense1the -anent pesos. The nal affect of yahoos u-selaneous transactions 1 181314 nyml cal assets (I e. sales, trade) us, and donations) The Issuance of loll pl most pmvldes cuaeni Pnanclal reseurces ho 2,415,105 govemmenlal buds while the doc Ment of the principal of longterm debt consumes me cogent nnaodal rasomces of governmental funds. Neither transaction nowevee has any effect on net asset. Also, governmental funds upping Ie effect orissuance cost, premiums, cronies, on slmyor fen¢wban debt ra Ing ssued, wnerees mese re fall and amodixea m me statement of activlhes. This consulIs the net aged of these dlnnances at me hentoonl of long. bpm dem and relalsol s ms internal service bund are used by management o chane na e3]) the cost of mana9ementbbrmeGon dysfemshest management, employee Mnge wookmen Corn pensadon. and equipment replacement fin ndfidual Inas The net revenue of cehain potatoes, of Internal servloe funds 61041 is reported with government affends. Revenues In me statement of activities that do not produce 1 102,513 current financial remurces are not repgced in ilre bins. Some discounts reported In the gatemen l ofaco Ndes do not 43,363 require the use orcugent frnencial resources and mesebre. Ile nor reported as upenlmres n governmental Nord change in at assent m govemmemill actldned 5 5.819 859 20 1 1 1 1 1 I 1 i 1 1 1 1 1 1 1 1 1 1 1 City of cape Girardeau Statement of Net Assets Proprietary Funds For the Year Ended June 30, 2003 21 Total Proprietary Gov. Activities Softball Proprietary Internal Service Sewer Water Solid Waste Golf Course Complex Funds Funds ASSETS Curren) assets: Cash and cash equivalents $ 163,794 $ 93,628 $ 85,017 $ 4,905 $ 4,636 $ 351,980 5 242,105 Investments 1751,828 993,173 941,512 52863 49,858 3789,234 2,734,432 Receivables Utilities char,,o 354,561 628.473 254,655 - 1,237629 - Specialassessmenls 254,764 85,537 - - 340.301 Other 15.678 27.188 1.848 75 - 44,792 18,958 Interest 1.186 16.453 - - - 17,639 - Grants 11,495 8,256 15 - 343 20,109 - Invents, - 203,369 - 3771 - 207,140 9717 Prepaid Items 406,175 111,895 16.050 468 531 535,119 10746 Total Current as sets_ 2,969421 2167.972 1,299,097 62.085 55.368 6.543 943 3,015,958 Noncurrent assets: Rest Cash and Cash Equivalents 7467.571 156.306 251 - - 7,624 128 - Restlmestmems 128,810 2,800,028 2.677 - 2931,523 - Advancesto other funds - - - 114,695 Land 135,869 - 112,240 - 248,109 37,500 Buildings 8,179,938 209,477 812,404 143.802 7,720 F353 141 457.348 Equipment 2095733 1,393,139 1672860 421,540 168.722 5.751 994 4,076 729 Other Improvements 53,606.660 20,517,165 231,944 575,556 33,050 74966,595 115200 Construction In ping— 4,695,129 18,586.793 - - - 23,281,922 370,659 Apwmulatsd depreciation (17,399,735) (4420,994) (2,074.230) (629.784) (166.469) (24.697212) (3,049421) Total Noncurrent assets: 58,912,003 39.241914 758.146 511.114 43.023 99.466 200 2.122710 Total assets $ 61,871424 5 41,409886 5 2057,243 S 573,199 $ 98.391 $ 106010,143 $ 5.138,668 21 A 1 1 1 1 1 1 1 1 1 1 l 1 1 1 f 1 1 1 City of cape Girardeau Statement of Net Assets Proprietary Funds For the Year Ended June 30, 2003 22 Total Proprietary Gov. Activities Softball Proprietary Internal Service Sewe Water Solid Waste Golf Course Complies Funds Funds LIABILITIES Current nabibties Accounts payable 5 348,057 $ 327,291 $ 68.980 5 14,679 $ 31,449 5 790,456 $ 193,576 Salaries and benefits payable 46.971 1,08i 28.974 21,356 17.663 116,045 25,972 Interest payable 686,911 172.657 2,623 - - 862,191 2,414 Other liabllllles 172.065 148.126 66.445 3.142 - 389,776 71 Estimated claims payable - - - - - 427,397 Due to other governments 1.227 24,802 - - 26,029 231 Payable to other funds - - 486 486 - Notes payable Revenue bonds payable 2,227.000 650000 - - - 2,877,000 - Lessehold revenue bonds payable Certificates of participation payable - - - - - Specialobligationbondspayable 79,542 50,618 34,841 - 165,001 - Dafemaa revenue Total Current liabilities: 3,561,773 1,374,575 201,863 39,177 49,598 5,228,986 649,661 Noncurrent llab40ies Advances from other funds 321.933 - 750,000 372,011 190,000 1,633,944 Notes payable - - - - 400,000 Revenue bonds payable 34470,668 6424,075 - - 42,994.743 Certificates of of penonst,on payable - - - - 194.845 Special obligation bonds payable 539.044 342480 237,196 - - 1,118,720 Estimated landfill landfill post closure costs 105,000 105,000 Total Noncurrent llablities: 35.331.645 8766,555 1,092,196 372,011 190,000 45.752,407 594,845 Total liabilities 38.893.418 10141,130 1,294,059 411.188 239,598 50,979,393 1,244,506 N ET ASSETS Invested in capital assets, net of related debt 16,413,143 28,038,764 491,049 511.114 43,023 45,497,093 - Restricted for debt serese - 1016,667 - - - 1,016,667 - Restncfedmrdepreeiatmnandreplacement 127,000 580,000 - - - 707,000 - Restricledforemergencyfund 281064 693.865 340933 - - 1,315,862 - UphisMiCled 1 939,460 (68,798) (349,103) (184.230) 5.494,128 348940162 Total net assets 5 22.978006 $ 3t 268756 $ 763.184 % 162.011 4 (1411207) S 55.030750 $ 3894,162 Adjustments to reflect the consolidation of internal service fund activities rotated to enterprise funtlsnet assets of brain.. type activities 21,227 55.009 523 22 1 i 1 1 f 1 1 1 1 i i 1 i i 1 1 1 1 1 Cityof Cape Glrar4eau soleme In of Pevenues. Expenses, and Cll.... x In Fund she Assets proprietary Funds For the Year Ended June 30. 2003 priander type A -ties -Enterprise Funds Sewer Wale, ..,in At Goll Coma Soflhall Total ..is Aceirilies Complex Proprietary Internal 3ervlce Fund. Funds ."Y'reg revenues: Res del at drag $ 1510,350 $ 2,77B D28 5 1,7ribAl3 $ E $ 5,992.901 $ Gom me�Cial don'ss 901,990 1,989,35] 24.591 - - 2,996.235 - 11 -der slaoon charges 554.190 - - 554,130 - ntnerleesanhcharyes 46,010 139131 )4.0]5 260.616 - Concessimmvenues - - 63,531 70736 13A2A1 - Epunmenl1.e, - - - 6364 n, 868 18,232 - Iridedlsharges - - - 3.645000 us, 9e lees - - 303,0]5 60,959 444.036 R _ n 46,665 24.895 28482 450 (fill) 99.806 1,46] Ul GPerot- 2565,045 4,932011 2,386,871 d56450 2,92f 10$06304 3,54Q5P 1,02517, ex zes. Personnel semces 885,1]3 11],306 908844 265,8]9 224,50] 2,481]09 6ID,205 e4 85uppres 227 277 Iti 7,,515 59,5]3 52,942 7e2,Cl li Cotold"lseu,", 10]915 209].5]0 ]58.134 2746] 14486 1sol.SII 2462023 Generacresting d,s... s 42,4]0 152,195 5].]45 43,496 53586 349.492 43,441 9p -I pmg2ms 24,610 43712 54.069 1reB 0,921 136306 ro ep.nses 66361 dB"e 159.599 49,305 23,094 346.409 229] Oepedallon 1511,84] 643,001) 151,411 d5,073 B, el] 2, bin 940 4]1,393 Total opprating evpenses 2,865,653 4.233.]66 2,240.337 198069 386.353 10 274 3,090.6]6 Opereling l"eme(los) 1200606) 6d B, 245 Id6, 534 (45415) (24]430) 225326 141,3591 cnopememg revenues(brands) nlergcvOm men lel 6 f1 69493 - - 101 76,411 - Compensalionlordamages - - - - - - 4 298 vs menl revenue 301,543 158.600 34]62 ]IS 1,310 582946 g3 327 Ganrmm pale of asset 33 - 6,90e 1,725 - 10650 1],925 I ,teat and lips, charges ]1, 15 e, 033) Ifi09,]11) (44,009) (19,8451 7up, 1.841 171) 1147821 or amimporson 161,111) (17,P41 202 - - (u0286) it 113) Rod elm sale of apIbt (378) 19391 11 74) - - (1,491) (5,6351 Loss 0, rene,noul of dent 116,851) - - (M,0501 fowl 17x17 opron, revenue to^pens ecI (842,7421 oto I.) 13191 1174051 (6177) (1.266 743) 93 sal me INe.I before conN huG on. and tmdsfe¢ (1,123,350) 240,245 1,6215 162,8201 (249 707) 11041,417) 49,221 Conldhutad sp-connect Re 141.111 - - - 145,170 - Con!nbWM:apdevelopen 727.195 190 E72 91],06] - Conldhuledcap-donaledassl - - - 256423 - 205,423 - Conuihu1.line -govemmenl - 3.066588 - - 3, Cfit.111 - Canldhuted cap -grants 312,792 13,840 326 til imnsle¢m 2,300.162 120,000 - ]6,6]0 224, 4e3 2]21135 lap 1. Rapiers out (201,]33) Ghangmn no assn, 2,049,077 3,940.26] 160.163 lit (25,304) 6414,016 26,980 Total net asset, - perion, 20.926929 2],328.459 623.121 (130262) (115,903) 40,606344 906].1]4 Into net asset -eryt $ 22, 9]5,0e6 5 3121B.]Sfi E ]63,184 E 162011 E 41,2071 4 55, P30]50 $ 3.894,162 Ad,turmente to renew the cprephdiplio r of lntemal service fend acnyltude related to enterprise fonds 21 Ill Change in net assets of businesstypeactivities 64031 le 23 1 f 1 1 i f t it 1 1 1 1 1 1 1 1 i Y 1 ?4 City of Cape Girardeau Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2003 Business -type Activities - E t Funds Governmental Total Activities - Proprietary Internal Sewer Water Solid Waste Golf Course Softball Complex Funds Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 2,566,313 5.035.724 2,305,552 454,032 142,925 10,51 101,080 Receipts from impound services provided - - 24,891 - - 24,891 3,750,583 Reimbursement of excess claims from insurer - - - - - 22,648 Payments to suppliers (344,239) (3,33],9]0) (925,604) (129,474) (119,587) (4,856,874) (2,]00,4]2) Payments for salanes and benefits (885,890) (116.983) (1111 ) (266.775) (222,829) (2,480,527) (608,853) Payments for interfund services used (70,178) (48.050) (160,249) (55.784) (26209) 1360,470) (2,987) Payments made in lieu of franchise taxes - (122,300) - - (122,300) - Remittance of taxes collected from customers (161,711) (161,711) Net cash provided (used) by operating activities 1,256006 1,248,710 255,540 1,999 (225700) 2.547555 561.999 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - 120,000 - ]8,6]0 224,889 421,559 - Transfer to other funds - - (i ]J,500) Interest paid to other funds - (30,9) (7,698) (3],685) - Subsidyfro al9rant 90.181 73 .4fi2 11 119 2.743 166.515 cas Netet cash provided (usetl)by n0ncapital financing activities 90,191 193.462 (30,050) 76,670 219,936 550.209 (173500) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt 608.708 387,360 266,631 - - 1,262,699 400,000 Gapital contributions 285,925 49,611 21,348 - - 356,885 - Purchase of capital assets (160.345) (93,780) (62,676) (2,950) - (319,751) (648,338) Acquisition and construction of capital assets (2,820,318) - (29,063) - - (2,849,381) (7,745) Principal paid on capital debt (2,969,948) (960,000) (265,003) (17,989) - (4,212,940) (95,459) Interest paid on capital debt (700.082) (573,020) (14,336) (19,845) - (1,307,283) (15,850) Proceeds from sales of capital assets 33 535 9,050 1,725 - 11,343 51,897 Transfers in for capital aquisilipns 212,000 - - - 212,000 179.500 Transfers in for payment of capital related debt 2,088,062 - - - - 2,088,062 - Transfers out for payment of capital related debt - (28.2321 Net cash provided (used) by capital and related financing activities (3,455,954) (1,189,294) (74,049) (39 059) (4,758,366) (164,227) ?4 1 1 f 1 1 1 1 S Y i 1 1 1 i { 2S City of Cape Girardeau Statement of Cash Flows proprietary Funds For the Year Ended June 30, 2003 BusinesstypeActivities- Enterprise Funds Governmental Total Activities - Proprietary Internal Sewer Water Solid Waste Golf Course Softball Complex Funds Service Funds CASH FLOWS FROM INVESTING ACTIVITIES Interest received 376,090 175,091 39,808 811 1 52 593.327 106,066 Rebetable Interest received 13,699 - - - - 13,699 - Payment ofobstacle interest to government (26.929) - - - (26,929) - Netchangelnpooledlnvestments (984,475) (473.005) (288,312) (37,494) 2,082 (1,]81,204) (383,906) Proceeds from sales and maturities of Investments 2]],524 - 88,824 - - 366,348 230,000 Purchase of investments - - - - (241,690) Repayments reserved on advances made to other funds 25.305 Net cash providetl (used) by Investing activities (344,091) (297,914) (159 680) (36 683) 3,609 (834 759) (264,225) Net increase( decrease) in cash and cash equivalents (2,443,858) (45,036) (7,239) 2,927 (2,155) (2,495,361) (39,953) Balances beginning of year 10075223 294.970 92.507 1,978 6,791 10471 469 282058 Balances-endoftheyear 7.631365 249,934 _85 268 4.905 4,636 ]9]6108 242105 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) (280608) 648.245 146,534 (45,415) (243,430) 225,326 (44,359) Adjustments of operating income to net cash provided (used) by operating activities'. Depreciation expense 1511,846 643,000 151,411 45,873 8,818 2,380,948 471,392 Changes In assets and liabilities. Accounts payable - supplier 36818 9.687 9,078 1,703 7389 64,475 110,579 Accounts payable other 24,013 5.435 (33,190) 496 (3,245) 3 Salaries and benerits payable (717) 323 794 (896) 1,678 1,182 1,352 Customer receivables (26,142) (40,428) (44,700) 81 (111,189) 7,015 Other operating receivables - 52,786 26,541 79.327 17,330 Prepaid expenses 996 1,267 72 (24) (155) 2,156 4,514 Inventory (71,606) 181 (71,425) (5827) Net Cash provided (used) by operating activities 1.266D06 1.248.]10 256540 1999 (225,700) 2.547.555 561999 2S L 1 City of Caped irardeau, III, III Statement of Fiduciary Net Assets Fiduciary Funds For the Year Ended June 30, 2003 Agency Funds ASSETS Cash and cash equivalents 75,744 Investments 843.150 Real estate taxes 17,579 Personal property taxes 5,065 Other 56 Grants 265 Total assets $ 941,859 LIABILITIES Accounts payable 40.451 Salaries and benefits payable 5.455 Other liabilities 895,953 Total Liabilities $ 941.859 NET ASSETS Held in trust for pension benefits and other purposes 26 City of Cape Girardeau, Missouri NOTES TO FINANCIAL. STATEMENTS June 30, 2003 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 Corm of government and provides the following sen ices 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 govenvnent 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. Cape Girardeau (Missouri) Publi e Faci lilies Authority -As described in Note E, the City has entered into four (case agreements with the CGPFA. The CGPFA is a not-for-profit corporation organized and existing under Chapter 355 of the Revised Statues ofMissouri. The CGPFA board of directors consists of City officials and City COunellmembers. Due tothe significant City influence and financial accountability, the activities ofthc CGPFA are blended with the financial presentation of the City. The CGPFA was organized to execute the - bond indentures for the purpose of issuing and securing the Series 1993 Bonds, Series 1994A Bonds, and Series 1997A Bonds, and 1997B Bonds. These bonds were used to finarec construction and improvements to sewer, solid waste, street, airport, flood control, and othcrcapital improvetnent projects. The bond payments are obligations of the CGPFA. The CGPFA has entered into a Lease Purchase Agreement with the Cny Goin which the lease payments will be used solely to retire the debt. y Although not a component unit of the City, the City handles the funds of and provides accounting and other services for several entities. Since these fonds are held bythe City. these entities are shown as Agenc}•Funds in the financial statements. 27 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued ,. 2. Government -wide and fund financial statements The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed fi-om these statements. Governtnentril activities, which nomnallyare supported bytaxes and intergovernmental revenues, are reported separately from business-npe activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset byprogram revenues. Direct expenses are those that are clearly identifiablewith a specific function or segment. Program revenues include I) charges to customers or applicants who purchase, use, or directlybcnefit 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. 'faxes 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 accountine and financial statement presentation The govcmment-wide financial statements are reported using the economic resources measru enieut focus and the accrual basis ofacconuting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless ofthe timing of related cash Flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. With the economic resources measurement focus all assets and liabilities associated with operations are reflected in the statement of net assets Governmental fund financial statements are reported using the nrrrent financial resrnvices measroeneent focus and the morhfed accrual basis ofaccormtmg. 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" ithin the current period or soon enough thereafler to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 30 days of the endo f the current fiscal period. Fxpenditures generally are recorded when a liability is incurred, as under accrual accounting. I-Iowever, debt service expenditures, as" t1l as expenditures related to compensated absences and claims and judgments, are recorded only when pavurcnt is due. Those revenues susceptible to accrual are properlytaxes, franchise taxes, special assessments, licenses, interest revenue and charges for waives. 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 incash. With the current financial resp Arc es measurement focus. on lvcurrent assets and current l i abilities are generally included on the balance sheet. 28 y City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 3. Measurement focus, basis of accounting and financial statement presentation - Continued The government reports the following major governmental funds: The general fiord is the government'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 airportjmd accounts for the resources used in the operation and maintenance of municipal airport facilities. Theparks and recreation fiord accounts for the resources used in the operation of park and recreational activities. The transportation sales tax trust 11 fund accounts for the receipt and expenditure of a capital improvement sales tax that was approved by voters in Auattst 2000 for street construction and improvements. The debt service finrd accounts for the resources accumulated and payments made for principal and interest on general long-term debt of governmental funds. The government reports the following major proprietary funds: The seiner fend accounts for the operation of the city's sewage treatment plant, sewage pumping stations and collection systems. The waierfimd accounts for the operation of the city's water treatment plants and distribution systems. The solid a asic fund accounts for the operation of the city's residential solid waste and recycling programs. The golffimd accounts for the operation of the municipal golf course. The softball compler fund accounts for the operation of the city's softball complex, and maintenance of the city's soccer, baseball, and softball fields. Additionally, the government reports the following fund types: buernol serrice finals account for data processing, fleet management, employee benefits, workmen's compensation, and equipment leasing prodded to other departments or agencies of the gocemment, on a cost reimbursement basis. Agency fivads account for the operations of the library, arena improvement committee, and parks dccclopment foundation. 29 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STAT EMENTS June 30, 2003 NOTE A - S17MNIARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued 3. Measurement focus, basis of aceountine and financial statement presentation - Continued Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally arc followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private -sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The govemment has elected not to follow subsequent private -sector guidance. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and other charges between the government's enterprise function and various other functions ofthe government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers orapplicants 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. r Proprietary funds distinguish operating revenues and expenses front nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the city's enterprise funds, and of the city's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and ' services-, administrative expenses, and depreciation on capital assets. All revenues and expenses not meet- ing this definition are reported as nonoperating revenues and expenses. 30 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued 4. Capital Assets All capital assets 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 fixed assets is recorded by removing cost and accumulated depreciation from the accounts and charging the resulting gain or loss to income. Depreciation of all exhaustible fixed assets is charged as an expense against operations in proprietary funds and a program cost of governmental activities in the statement of activities. Assets are reported net of depreciation on proprietary fund and government -wide statement of net assets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows. Buildings 25-50 years Improvements 10-40 years Equipment 3-10 years When applicable, interest costs are capitalized on self- constructed fixed assets. 5. Encumbrances Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized in all funds. Encumbrances outstanding at the end of the year in the governmental funds are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be carried forward and honored during the subsequent year. Encumbrances outstanding in the proprietary funds do not constitute expenses but will be honored in the subsequent year. No reservations of net assets are made for encumbrances outstanding at the end of the year on the proprietary fund and government -wide statement of net assets. 31 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A -SUMMARY OF SIGNIFICANT .ACCOUNTING POLICIES—Continued 6. Budgets and Budgetary Accounting "fhe City adopts annual operating budgets for all funds. The City follows these procedures in establishing the budgetary data reflected in the financial statements. t. The City Manager submits to the City Council a proposed operating budget for the fiscal year the following July 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer colnnents. 3. Prior to July 1, the budget is legally enacted through passage of in ordinance. 4. 'Fite 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 a]I 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 ret=ewes to appropmuc, unencumbered appropriation balances within a department, or there is an emergency situation the City Council may amend the initial budget by ordinance. 'Fie initiat budget was adopttxl by -the City Council on June 3, 2002 and amended on July 7, 2001 The initial budget and final amended budget are both reflected in the financial statements. For the year ended June 30, 2003 the fund expenditures for Vision 2000, Motor Fuel Tax. Capital Improvement Salcs Tax -Flood Control, Transportation Sales -Fax Trust 1, Capital Intproyement-Sales Tax - Sewer huprovemcnts, Debt Service, Park Improvurnents. FAU Projects, Corp Flood Control Projects, Mamagenienr hifomiation systems, Frim�e Benefits, and Equipment Replacement funds exceeded their appror'cd budgets by, S,492,$621, 5'57,-,89,$-,O,402,$99,739,59,910, $33,794, 513,213, $3,201,S15,605, $435, 728 and S 12,70&. respectiveh'- 'The Statement of Rerenues, Expe.nctnures, and Chungcs in Fund Balances -Governmental Funds reports revenues and expenditures on the modified accrual basis of accounting in accordance with GAAP. Tic Statements of Raccnues, Expmrdiw;es, and Clnan_e.<, in Fund Balances-Budyct and Actual (Budget It Isis) li?r all governmental fund types i,a prepared on a budgetary basis which includes encumbrances as expcmdinres. 32 33 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES— Continued 6. Budgets and Budgetary Accounting - Continued The following reconciliation adjusts GAAP basis to budget basis: Excess(Deaeiency) of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses ' Park, and Tiznsvoneon Debt Von-mo)or Gcncml Aimotl Recreation 1le sl I I Service Funds GAAP13as1s $ 172,560 (516,228) $584 51727,650 (S 1,677.455) (S3.516,207) Increase doe to Year-end encumbrances Adminlstralrce Sen ices 2.451 49,426 - - _ 9,042 Development scrviees 6505 - - - - - Parks and recreation 1,371 - 70 - - - PubllcSefcly 45,380 - - _ - 5,281 Public works 6.153 - - - _ - Capdolowlay - - - 1,530,245 - 507,726 ' Advance from other funds 33,556 - - - - - Adjesl investnn els to market 10,982 195 450 13,566 5,104 40,145 Ws63r Imprnvemcnts Fund not budgeted annually 902 816 106396 49621 X211 1543511 _5,1,04 3361 050 Decrease dire 1m Year-end encumbrances Ad mi nisl,mi scrvicgs 17,539 2.162 - - - 334 Development services 4,306 Parks and rccrcation - - 4,329 Pubhe afav 5S,3SS - - - - 479 Public works 29,679 Capital outlay - - - 649,584 - 934,942 Advance Repupmcros 253111 _ 110.112 27.467 4329 649,584 __ 93565 Rede,, Basis _SL66,S46 _ s 9'-0 (S3 22� 52.621,677 (51,672,381 _(56S6,8 12) The individual proprietary fund schedules of comparing budget to actual is repotted on a budgetary basis that uses the modified accrual basis of accounting with the exception of encumbrances. Encumbrances arc reported as expenses in the year of encumbrance. 33 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 6. Budgets and Budgetary Accounting - Continued Net Income (Loss) GAAP [iasis Solid Increase due to Softball Prior vicar encumbrances. water Contractual scrn ices C. Capital Outlays $2,049,078 Depreciation S160,063 Capitol grants (525,3031 Special assessments 4,684 Sewer connection fees - Bond proceeds 1.968 378 Interest paid I... mea aecmed 9,280 Interest cost amoniced - Cost of bond refunding amortization 643,000 AmmrLul hand premum/discount 45,873 Loss on early retirement of debt - Issuance cost amonv,ilmo 13,848 Amounts deferred m be used for future debt Service on capital appreciation bonds. 42,839 Constr"amn fund earnings _ Asset dispositions 14 i, 170 Adjust investments to market - DitTerenee benceen proceeds from sale of fixed ..vets and earn or loss 393,753 Decrease due in - Year -cod oncumbmnces S9,391 Contmcmal sea, a's Capital outlays .. Landfill closuremd m.intcnancc costs Interest paid marc than .cernal 3504 Bond principal paid - Annrricd Bond prenrUir discount Issuance cost paid 297 Issonocc cost amartim(mn - Capital outlays 16,850 Cost ofbond rc funding zmonimuon Amount deferred far future dcht mnmc far cola") 17,374 apprcciaGon bond,. - merest subsidy recco ed. 22,024 Adlu4lmenr 10 rnbiiltt far fawn landfill posa9aaaru Deferred ter -macs _ Conmbced capital B dget Ba>; Net Income (Loss) - - Solid Golf Softball Sewer water 'Aasto C. Com $2,049,078 S3,940,299 S160,063 5300.271 (525,3031 221 4,684 2,017 - 104 1.968 378 - 9,280 - - 1,511,847 643,000 151,411 45,873 5.817 - - 13,848 _ 120,698 42,839 - _ 14 i, 170 - - _ 618,754 393,753 271.030 - S9,391 808,595 3504 51,559 - - - 297 1,007 - 16,850 61,114 17,374 - - 22,024 - 378 - - 20,237 23,582 7,518 96 209 _ -]} 472 325 5386162 1251,560 456.436 _ 44969 9130 18,636 2,643 3,982 K940 4.167 962,186 - 66.445 8.414 3.546 - 151188 1,151 - 3411567 121 960,000 26,003 17989 - 10.046 - 6.393 - 4,400 - - - 202 3,0-''1.744 196 18; 69,840 2,9so - - 34,414 - '_I,_T5 30.'_70 38,603 - - S-,' 36 --8 3,5]? flit _ 1_�S48 _-'E6_423 466'r 478 S S 502026 34 It(, 436' S(IJ 11410 5_41)J rRO S114 r3 521,924 5(20?471 34 City of Cape Girardeau, Missouri NOTES TO FINANCIAL SIATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POI.,ICIES - Continued 6. Budgets and Budgetary Accounting, - Continued 3S Net Income 0-crss Ua�a Ra: ilmpLme Risk Py,'p m hrtMe�iit€ ti��,ksenen I'di,ee Ms�wgemcp� .rl�,>w;Sa� GAAP Basis $(57,617) $(73,001) £(14.63) $(21,182) 3252,551 Increase due to: Prior year encumbrances Contractual services - 1,12t Capital outlays - 7,745 - - 41,191 Depreciation 136,135 39 337 - 245,922 Bond proceeds - - - 400,006 Difference between proceeds from sale offixud assetsand gain or loss 7,586 440 - - 27,282 Issuance cost arnortizalion 837 - - 716 Adjust investment to market 389 973 2,099 5,050 2,24) Repayment of infartra d loans - - 25,305 AmOrtlud bond pmmiumldisoount 70 _ _19194,974 _49 566 2 099 _J,050) 742.716 Decrease due to: Year-end enemnbrances Contractual services 3,c72 - capital outlays 5,695 3,180 interest paid more than accrued 858 2 - 306 Principal paid ?oAoo 460 - 25,000 Capital outlays {;q, 853 210 -- 582286 146406 21334 __644867 Budgct Basis S(8,449) $15,131 S iLL2,(14) X16,132) $350,7110 7. Inventories ittcentories consistprimarily of supplies, valued at cos[. Cost is deinntined us'ine a weighted average: method. The cost 01 inventories is recanted as expottdiarres c r cNpen es wIlen Consnored rather 111,111 AN ku pnrchllsEtl 3S City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued S. Compensated Absences Vested or accumulated vacation pay for proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. Amounts of vested or accumulated vacation leave ofgovemmental funds are reported in the Statement of Net Assets. Employees may accumulate up to 30 days vacation, for which they are compensated upon termination or retirement. Employees are not compensated for accumulated sick leave upon termination or retirement. 9. Bond Discounts/Issuance Costs In governmental fund types, bond discounts and issuance costs are rceoo sized in the current period. Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the tern of the bonds. Bond discounts- are presented as a reduction of the face amount of bonds payable whereas issuance costs are recorded as deferred charges. The accounting treatment of bond discounts and issuance costs used for governmental activities in the govemmenl-wide statements is the same as that used for proprietary funds. 10. Cash and Investments The City maintains an internal investment pool for the nrajm-ity 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 -lean investments with a maturity date within three months of the date of purchase. The City's investment policy authorizes the investment of available operating and reserve funds in (1) obligations of the United States or its agencies and instrumentalities; (2) repurchase agreements collateralized by securities listed in (I) above, documented by a written agreement, fully collateralized by delivery to an independent third party custodian, and are marked -to -market; (3) insured or collateralized deposits or certificates of deposit of banks, savings and loan associations, and other regulated financial institutions; (q) money market mutual funds whose portfolio consists of the foregoing instruments; and (5) other prudent investment instruments approved prior to purchase by a two-thirds majority of the City Council. Bond proceeds maybe invested as allowed in the bond indenture. Investments, with a maturity date of one year or more at the time of purchase are recorded at fair slue. All other cash and im-esunents arc recorded at cost or amortized cost. 36 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 11. Prepaid Items Payments made to vendors for services that will benefit periods beyond June 30, 2003 are recorded as prepaid items. 12. 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. 13. Lona -term Obligations Only that portion of long -tern obligations expected to be financed from expendable available financial resources is reported as a fund liability of governmental fund. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in the appropriate proprietary fund. Long -terra liabilities expected to be financed from governmental activities are accounted for in the government -wide statement of assets. 14. Interfund Transactions Quasi -external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, arc recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is rcimbtuscd. All other interfund transactions, except quasi -external transactions and reimbursements, are reported as transfers. Only net transfers between governmental and business type activitics are reflected on the government -wide statement of activities. 15. Short-term interfund Receivables/Payables During the course o f operations, numere us transactions occur between individual funds for goods prow ided or services rendered- These receivables and payables are classified as "interfund receivables/payables" on the governmental balance duel and proprietary statement of net assets. Only net receivables between 'lox ernmental and business type activitics are reflected as internal balances on the goverment -wide statement of net assets. 37 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 16. Advances to Other Funds Noncurrent portions of long-term interfund loan receivables and payables are reported as advances in the governmental balance sheet and proprietary statement of net assets. Fund balances are reserved in governmental balance sheet for interfund loan receivables to indicate that they do not constitute expendable available financial resources and therefore are not available for appropriation. Only net long-temt interfund loans between governmental and business type activities are reflected as internal balances on the govemment- wide statement of net assets. Net assets are not reserved for interfund loan receivables on proprietary and government -wide statements of net assets. 17. Post -Employment Health Care Benefits In addition to the pension benefits described in Note G, it is the City's policy to provide postretirement health care benefits to employees who retire from the City with five or more years of service and who are eligible for LAGERS retirement (Note G). Currently, forty-two employees meet those eligibility requirements. TheCity provides health care coverage for them until age 65. The cost of retirees' health care benefits is recogmized as an expenditure as premiums are paid. For the year ending June 30, 2003, those costs totaled $129,782. COBRA Benefits - Under the Consolidated Omnibus Budget Reconci liation Act (COBRA), the City provides health care benefits to eligible former employees and eligible dependents. Certain requirements are outlined bythe federal government for this coverage. The premium is paid in full by the insured on orbcforc the tenth (10th) day of the month for the actual month covered. This program is offered for a duration of 18 months after the termination date. There is no associated cost to the City under this program, and there wcrc four participants in the program as of June 30, 2003. 18. Infrastructure During the year ended lune 30, 2003 all infrastructure completed during the fiscal year, including projects started in a previous year, were recorded at their historical costs. All infrastructure completed in previsous fiscal years will be recorded no later than fiscal year ending lune 30, 2007. 38 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE B - DEPOSITS AND INVESTMENTS 1. Deposits At June 30, 2003, the caning amount of the City's deposits was $14,979,335 and the bank balance was $19,664,188, which excludes $5,999 of petty cash funds held at various City locations. The deposits are categorized in accordance with risk factors created by governmental reporting standards. Carrying Bank Amount Balance Category 41 S14,979,335 514,912,970 Category 42 - - Category #3 — $14,979,335 &14-912,97 Category #I includes deposits covered by deposit insurance or collateral held by the City in the City's name. Category#2 includes deposits covered by collateral held by the financial institution's tmstdcpartmcnt in the City's name. Category#3 includes deposits which are uneol lateralized or the collateral is held by the financial institution's trust department but not in the City's name. 2. Investments Investments made by the City are summarized below. The investments that are represented by specific identifiable investment securities are classified as to credit risk by the three categories described helowN Category #1 Insured or registered, or securities held by the City or its agent in the City's name. Category 42 Uninsured and unregistered, with securities held by the counter -party's trust department or agent in the City's name. Category 43 Uninsured and unregistered, with securities held by the counter -party, or by its department or agent but not in the City's name. 39 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30,2003 NOTE B- DEPOSITS AND INVESTMENTS 2. Investments - Continued Carrying Pair value Value U.S. Government Sccunlie_s S a.476,$11 S9 ,476,MI Cenificates of Deposit 7364 598 1 G 364 598 $25,H L409 521N41=409 NOTE C - PROPERTY TAXES _ Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August I9, 2002, for collection during this fiscal year and were due on or befot e December 31. Most of the taxes are collected in November and December. The tax rates assessed at the time were as follows: General Revenue S-3Y35r` 00.00 assessed valuation Public Health .0587/100.00 assessed valuation Debt Service .16001 i OQ00 assessed valuation Special Business District .7793/100.00 assessed valuation ,f2 (Ad valorem) -� Property tax receivable balances as of June 30, 2603 are as follows: Special Gencral Business Public Debt -� Reectte District Health Service Total Current properly tax S43,080 51,833 S8,234 $ 5,222 $58,969 Delinquent property tax 9,294 91 1,262 12,010 21,057 Reserve for doubtful Property tzucs�,' _Ff -- _At - 75731 _a 022 X2.584 Net properlytax reccir able $43_583 71 )24 5.7,923S_68 44 40 41 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STA "DEMENTS June 30, 2003 NOTE D - CHANGES IN CAPITAL .ASSETS A summary of the capital assets for governmental activities included on the govenment-wide statement of net activity for the year ended Jule 30, 2003 is as follows: Balance Accumulated Balance July 1, 2002 Additions Deductions Depreciation lune 30 2003 Land S 2,675,580 $ 1,309,443 S - S - S 3,985,023 Buildings 7,657,931 79,983 - 394,924 7,342,990 Improvemcros other Than buildings 3,611,929 82,642 - 285,064 1409,507 Equipment 2.460491 366,572 39,153 645,567 2,142,343 lidaslmclule - 9.860.827 - 131,968 9,728,859 Construction in progress 93,348 3459,549 69.285 1.483 612 Total general fixed assets -Id $15159016 -S-MA8 $1,457,523 $10092,334 Additions and deletions to the Enterprise Funds for the fiscal year 2003 were $8,666,097 and $181,067 respectively. Additions and deletions to the Internal Service Funds were $666,362 and $115,782 respectively. A summary of the proprietary fund type capital assets i TIC] uded on the proprietary fund statement of net assets for the year ended .lune 30, 2003 is as follows: Enterprise Internal Fund Service Fund Land S 248,109 $ 37,500 Buildings 9,353,142 457,348 Improvements other than building 74,966,594 115,200 Equipment 5,751,995 4,076,729 Construction in progress 23,281,922 370,659 $113,601,762 $5,057,436 Less: accumulated depreciation 24,691_,12 3,049,421 .$88.910.550 U008,015 41 Principal payments are made annually on November Land interest payments are made semi-annually on May 1 and November 1. 42 City of Cape Girardeau, Missouri _ NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONGTERM OBLIGATIONS The following is a summaryofchanges in the long-temr debt included on the City's statement of net assets for the year ended June 30, 2003. General Cnuscd Ducm Govcrnmenttl Obligation Other Revenue Bonds Paid Other ActiviGcs Bonds Debt- Lee, Go, narnerd Toni Debt payable in, 1, 2002 $1,280,000 7,955,562 S21608941 5710,06 $41,144 533,610503 Discountarnon,,mr, - 4,711 (6,395) - - (1684) Retired (855,000) (1945,000) (730,000) (3,516) (6,004) (4,539,520) Additions _.„)19.082 Dchtpayable J,,ne30,2003 $425,000 6,934,355 ___i2-11-_2 S4L _5727,340 $35,140 S30.994.3sI -Other Debt mclndes Special Obligation Bonds, 1,,rhold Re,orn, Bonds and Cmificates of Punicipetion. Special Leasehold Certificates Business -type Obligation Revenue Revenue of Activities Bonds Bonds Bonds Participation Total Bonds payable at July 1,2002 - $48,091,967 $169,151 51,255,000 549,516,118 Discount Amortization & Issue Cost 185 62,207 849 - 63,241 Bonds Issued 1,283,536 - - 1,283,536 Accumulated Interest - 813,570 - - 813,570 Bonds Retired - (3,196.000) (170,000) (1,255,000) (4,621,000) Bonds payable at June 30. 2003 $1,283,7? 1 15 771 744 $ Bonds payable for governmental and business -type activities at .lune 30.2003 are comprised of the following individual issues: S 425,000 1993 General Obliaation Refunding Bonds due as follows: Fcat Ending Interest Principal Interest June�30 Rate Due Due Total 2004 5.00% 5425,000 S10,6'_5 5435,625 Principal payments are made annually on November Land interest payments are made semi-annually on May 1 and November 1. 42 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS .lune 30, 2003 NOTE E - LONG TERN OBLIGATIONS - Continued On April 20, 1993, the City issued $3,690,000 of General Obligation Refunding Bonds Series 1993 with interest rates varying from 3.75% to 5.50%. The refunding bonds constitute general obligations of the Cit and are payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The refunding bonds wereissued to provide the City with funds which together with other legally available funds of the City, were used to refund $3,580,000 principal amount of General Obligation Refunding Bonds, Series 1987, of the City and pay the costs of issuance of the bonds. S 3.125.000 Special Obligation Refunding and Improvement Bonds Series 2002 Year Ending Interest Principal Interest June 30, Rate Due Due Total 2004 3.00% $320,000 $119,030 $439,030 2005 4.50 485,000 106,955 591,955 2006 4.50 4W000 88,655 578,655 2007 4.50 335,000 70,093 405,093 2008 4.50 340,000 54,905 394,905 2009 3.75 35U00 39,380 389,380 2010 4.00 340,000 25,130 365,130 2011 4.00 155,000 15,655 170,055 2012 4.10 155,000 9,455 164,455 2013 4.10 155.000 3,177 158,177 x,125 000 _$532,435 $3,657,435 Principal payments are made annually on October 1, and interest payments are made semi-annually on October I and April I. On October 22, 2002 the City of Cape Girardeau issued 53,125,000 of Special Obligation Refunding and Improvement Bonds Series 2002 with interest rates varying from 3.00% to 4.50%. The bonds are special obligations of the City payable solely from the income and revenues provided for the year plus any unencumbered balances from prior years. 13 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATIONS - Continued The bonds were issued by the City for the purpose of providing funds to (a) pay the costs of refunding the Building and Equipment Leasehold Reflmding and Improvement Revenue Bonds, Scrics 1993, issued on behalf of the City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount .. of $1,085,000, (b) pay the costs of refunding the Certificates of Participation (Capital Improvements Projects), Series 1994A, issued on behalf of the City by the Cape Girardeau Public Facilities Authority and outstanding in the principal amount of$1,255,000 and prepayingthe leasehold interest represented thereby, (c) pay the costs of constructing certain street improvements within the City and (d) pay the costs of issuing the Bonds, 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 (the "Ordinance") and proceedings duly and legally had by the governing body of the City. The outstanding bond liability for the Special Obligation Refunding and Improvement Bonds Series 2002 is allocated as follows: $1,880,000 for Govermnental activities and $1,245,000 for Business -type activities. Series 1993 Sewerage System Revenue Bonds: These bonds are dated September 1, 1993. The proceeds of the bond issue were used to defense (in - substance) the S 1,170,000 1986 Sewerage System Revenue Bonds. On November 1, 2002, the bonds were called and the City paid the remaining balance outstanding of $550,000. $ 1.180,000 Waterworks System Revenue Bonds Series 1992 due as follows: Year Ending Interest Principal Interest )one 30, Rate Due Due 'Total 2004 7.45% S 555,000 S 87,910 S 642,910 2005 7.45 625.000 46.563 671,563 $11.80 000 ..$134473 X1-3 —14473 These bonds arc dated April 15, 1992. The proceeds of the bond issue were used to purchase, extend and improve the eater system serving the City. The purchase of the water system occurred on .lune 3, 1992. Principal payments are made annually on March 1, and interest payments aremade semi-armually on March I and September 1. Additional principal of 58,090,000 originally payable through the fiscal years ending.iune 30. 2006 to 2012. was defeused via an in -substance defeasance during the fiscal year ended June 30, 1996. 44 4n City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATIONS - Continued S 8,365 000 Waterworks System Refrmdin2 Revenue Bonds Series 1995 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2004 4.600% $ 95,000 $ 418,627 $ 513,627 2005 4.750 100,000 414,258 514,258 2006 4.875 810,000 409,507 1,219,507 2007 5.000 890,000 370,020 1,260,020 2008 5.000 980,000 325,520 1,305,520 2009 5.200 1,019000 276,520 1,286,520 2010 5.000 1,065,000 224,000 1,289,000 2011 5.000 1,120,000 179750 1,290,750 2012 5.000 2,295 000 114,750 2 409750 S8365,00 000 2 723 952 $11,088,952 Principal payments are made annually on March 1, and interestpayments are made semi-annuallyon March I and September 1. On December 1, 1995 the City issued $9,095,000 of Waterworks System Refunding Revenue Bonds Series 1995 with interest rates varying from 3.9% to 5.2%. The bonds are special limited obligations of the City payable solely from the net income and revenues derived by the City from the operation of the Watenvorks System after payment of costs of operation and maintenance. The bonds were issued to provide the City with funds to dcfeasc $ 8,090,000 principal amount of Waterworks System Revenue Bonds, Series 1992. 4n City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATIONS - Continued S 1,745,000 SeweraOc System Revenue Bonds (State Revolving Fund Program) Series 1991 due as follows: Year Ending interest Principal Interest June 30 Rate Due Due Total 2004 6.875% S 110,000 S 119,969 S 229,969 2005 6.875 120,000 112,406 232,406 2006 6.875 130,000 104,156 234,156 2007 6.875 135,000 95,219 230,219 2008 6.875 145,000 85,937 230,937 2009 6.875 155,000 75,969 230,969 2010 6.875 165,000 65,312 230,312 2011 6.875 175,000 53,969 228,969 2012 6.875 190,000 41,937 231,937 2013 6.875 205,000 28,875 233,875 2014 6.875 215,00( 14,781 _229 781 57 745,000 $798,530 $2 543 530 These bonds are dated December 1, 1991. The proceeds of the bond issue were used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on June 1, and interest payments are made semi-annually on June I and December I. The interest due on the 1991 Sewer System Revenue Bonds is subsidized by interest carvings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds hold by the trustee, the State of Missouri Department of Natural Resources deposits an amount equal to approximately51.907%ofthe reimbursemcut into thereserve fund. 'I lie maximum amount of funds that will be advanced to the reserve fund will be 57,250,000. As bonds are retired 50% 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 Juno 30, 2003 was $1,053,060. The resewc fund yields 6.71 %. During the fiscal year-end June 30, 2001 certain bonds originally issued by the State Environmental Improvement and Energy Resources Authority as part of the State Resolving Fund Program were refunded. Annual debt service savings resulting from this transaction are to be used to offset Citydebt set- icepayments duc on Series 1991 Bonds. Dunng the fiscal _year ended Jtme 30, 2003, City interest expense was reduced by 578.923 as a result of this transaction. Over the remaining life of these bonds, the City will receive net present value benefits of approximately $151,000 fiom this transaction. 46 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 354,000 Sewera eeSSystem Revenue Bonds (State Revohine Fund Program) Series 1993 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 2004 4.800% S 22,000 S 18,074 S 40,074 2005 4.900 23,000 16,983 39,983 2006 5.000 24,000 15,819 39,819 2007 5.100 25,000 14,582 39,582 2008 5.200 27,000 13,242 40,242 2009 5.250 28,000 11,805 39,805 2010 5.400 30,000 10,260 40,260 _ 2011 5.400 31,000 8,613 39,613 2012 5.400 33,000 6,885 39,885 2013 5.400 35,000 5,049 40,049 2014 5.400 37,000 3,106 40,106 2015 5.400 39A00 1,053 40,053 $354,000 $1.2.%471 _ _$479,471. These bonds are dated August I, 1993. The proceeds ofthe bond issue were used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on March I, and inter est payments are made semi-annuallyon March I and September I. The interest due on the 1993 Sewer System Revenue Bonds is subsidized by interest earnings on a rescive fund held by the band 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 70.00% of the reimbursement into the reserve fund. The maximum amount o f funds that" ill be advanced to thereserve fund will be $350,000 As bonds are retired, 70% of the amount of bonds retired will be repaid to the State of Missouri Department of Natural Resources out of the resen°e fund. The balance of Ihereserve fund at June 30, 2003 was $247,800. The reserve fund yields 5.15%. 47 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOPE E - LONG-TERM OBLIGATIONS - Continued S 8,653.978 Water Pollution Control Revenue Bonds (State Revolving Fund Program) Series 1995D due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 2004 5.400% S 924,769 S 53U31 $1,455,000 2005 5.500 928,413 626,587 1,555,000 2006 5.650 932,824 742,176 1,675,000 2007 5.750 937,566 862,434 1,800,000 2008 5.850 943,267 996,733 1,940,000 2009 5.950 946,770 1,143,230 2,090,000 2010 6.050 722,409 992,591 1,715,000 2011 6.100 413,574 636,426 1,050,000 2012 6.150 380,828 654,172 1,035,000 2013 6.150 354,978 670,022 1,025,000 2014 6.200 326,281 683,719 1,010,000 2015 6.200 303,920 696,080 1,000,000 2016 6.250 278,844 706,156 985,000 2017 6.250 259.535 715,465 975,00 $_86-53,978 _� 656 022 S 1%31 Q o00 These bonds are dated June I, 1995. The proceeds of the bond issue were used for the extension and improvement of the existing sewerage system serving the City. Principal and interest payments are made annually on January t beginning in 1998. -� The interest due on the 1995D Water Pollution Control Revenue Bonds is subsidized by interest eamins on reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds, the State of Missouri Department of Natural Resources deposits an amount equal to 70% of the disbursement into the reserve fund. The maximum amount of funds that will be advanced tothe reserve fund will be 709% of the principal amount less the original issue discount. Asbondsarerctirc1170% of the amount of bonds retired cvill be repaid to the State of Missouri Department of Natural Resources out of the reserve fund. The balance of thereservc fund at June 3Q 2003 was 56,057,785. The reserve fund yicl is 48 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATION - Continued $12325000 Seweraec Svstem Revenue Bonds (State Revolving Fund Program) Series 1996 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2004 5.000% $590,000 $702,209 57,292,209 2005 5.150 600,000 672,709 1,272,709 2006 5.250 610,000 641,809 1,251,809 2007 5.350 690,000 609,784 1,299,784 2008 5.500 700,000 572,869 1,272,869 2009 5.600 715,000 534,369 1,249,369 2010 5.700 730,000 494,329 1,224,329 2011 5.875 745,000 452,719 1,197,719 2012 5.875 765,000 408,950 1,173,950 2013 5.875 780,000 364,006 1,144,006 2014 5.875 800,000 318,181 1,118,181 2015 5.875 875,000 271,181 1,146,181 2016 5.900 895,000 219,775 1,114,775 2017 5.900 920,000 166,970 1,086,970 2018 5.900 945,000 112,690 1,057,690 .. 2019 5.900 965,00 56,935 1,021 935 $12,325,000 $6,599,485 $18924485 These bonds arc dated June 1, 1996. The proceeds of the bond issue were used for the extension and improvement of the existing sewerage system serving the City. Principal payments are made annually on .lanuary 1. Interest is paid semi-annually on January I and July 1 beginning in 1997. The interest due on the 1996 Sewcragc System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds, the State of Missouri Department of Natural Resources deposits an amount equal to 707;, of the disbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve will be 59,474,500. As bonds are retired, 70% of the amount of bonds retied mill be repaid to the Deparunent of Natural Resources out of the reserve llmd. The balance of the reserve fund attune 30, 2003 was 58,627,500. The resewe fund yields 5.70%,. 49 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATION - Continued During the fiscal year ended June 30, 2001 certain bonds originally issued by the State Environmental Improvement and Energy Resources Authority as part of the State Revolving Fund Program were refunded. Annual debt service savings resulting from this hansaction are to be used to offset Citydebt service payments due on Series 1996 Bonds. During the fiscal year ended June 30,2003, City interest expense was reduced by $14,528 as a result of this transaction. Over the remaining life of these bonds, the City will receive net present value benefits of approximately $192,000 from this transaction. $ 8,355,000 00 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 2004 4.400'%, $50,000 $446,830 $496,830 2005 4.400 50,000 444,630 494,630 2006 4.500 55,000 442,293 497,293 2007 4.500 120,000 438,355 558,355 2008 4.500 130,000 432,730 562,730 2009 4.600 145,000 426,470 571,470 2010 4.625 165,000 419,319 584,319 .. 2011 4.700 185,000 411,156 596,156 2012 5.500 215,000 400,896 615,896 2013 5.500 230,000 388,659 618,659 2014 5.000 250,000 376,084 626,084 2015 5.625 275,000 362,099 637,099 2016 5.625 475,000 341,006 816,006 2017 5.625 555,000 312,037 867,037 2018 5.300 590,000 280,793 870,793 2019 5.400 1,590,000 222,228 1,812,228 2020 5.450 1,655,000 134,199 1,789,199 2021 5.500 1,620,00( 44 550 1,664,550 $8,355,000 $6,324,334 S14679=34 These bonds are dated November I, 2000. The proceeds of the bond issue will be used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on July Land interest pa}anents are made semi-annually on July I and January 1. 0 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATION — Continued The interest due on the 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 thereserve 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, 2003 was $4,535,230. The reserve fund yields 6.71%. $22,850,000 Waterworks System Revenue Bonds (State Revolving Fund Prouram) Series 1998 due as follows: Year Ending Interest Principal Interest June -30 R=te Due Due Total 2004 3.900% $ 770,000 $ 1,087,425 $ 1,857,425 2005 4.000 810,000 1,057,395 1,867,395 2006 4.000 870,000 1,024,995 1,894,995 2007 4.100 920,000 990,195 1,910,195 2008 4.200 1,000,000 952,475 1,952,475 ,. 2009 4.300 1,025,000 910,475 1,935,475 2010 4.375 1,080,000 866,400 1,946,400 2011 5.250 1,110,000 819,150 1,929,150 .. 2012 5.250 1,215,000 760,875 1,975,875 2013 5.250 1,300,000 697,087 1,997,087 2014 5.250 2,350,000 628,838 2,978,838 2015 5.250 2,445,000 505,462 2,950,462 2016 5.250 2,550,000 377,100 2,927,100 2017 4.500 2,655,000 243,225 2,898,225 2018 4.500 2,750,00 123,75( 2,873 750 U2 685050 000S11 (144.847 $33 H94,S,17 These bonds are dated Decemher 1, 1998. 1 tic proceeds of the bond issue w i Il be used for the extension and improvements to the rcatemorks system. Principal payments Lite made annually on January I. Interest is paid semi-annually en January 1 and July I beginning on July 1, 1999. 5J City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATION—Continued The interest due on the 1998 Waterworks System Revenue Bonds is subsidized by interest earnings on a reserve fund held by the bond issues trustee. As the City is reimbursed for waterworks system expenditures from the construction funds, the Department of Natural Resources deposits an amount equal to 33.41 % of the disbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve will be $8,517,235. As bonds are paid off, 33.41% of the amount of bonds retired will be repaid to the Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 2003 was $6,385,068. The reserve fund yields 4.71 %. Building and Equipment Leasehold Refunding & hnurovement Revenue Bonds (Capital Improvements Prom), Series 1993: _ 'Flit bonds were obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The CGPFA had entered into a Lease Purchase Agreement with the City. Principal and interest were paid by CGPFA from rental and other receipts from the City. The purpose of the bonds was to (1) pay the costs of various street improvements for the City, (2) defease 510,410,000 outstanding principal amount of Building, and Equipment Leasehold Revenue Bonds of the Authority and (3) pay the costs of issuance of the Series 1993 Bonds. The outstanding principal on the bonds was retired on November 1, 2002, with proceeds from the issuance or the Special Obligation Refunding and Improvement Bonds, Series 2002 and other available funds. 52 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATION -Continued $256.000 City of Cape Girardeau, Missowi Lease Purchase Aereement dated lune 17 1999 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 2004 5.000% S 27,000 $ 12,800 S 39,800 2005 5.000 28,000 11,450 39,450 2006 5.000 29,000 10,050 39,050 2007 5.000 31,000 8,600 39,600 2008 5.000 33,000 7,050 40,050 2009 5.000 34,000 5,400 39,400 2010 5.000 36,000 3,700 39,700 2011 5.000 38,000 _ 1,900 39,900 y __.$256,000 ___560=950 --Jl.l.0,950 The lease agreement is the obligation of the City of Cape Girardeau,Missouri. Principalandinterestwillbe paid by the City from proceeds of the site lease and the lease agreement. The purpose of the lease act cement was to (1) rehabi I itate and otherwi se improve the A. C. Bi ase Arena Building and (2) acquire a but Iding at the Cape Girardeau Regional Airport known as the "Lipp's Hanger". Principal payments are made annually on April 1 and interest payments are made semi-annually on April I and October 1, S 491,000 City of Cape Girardeau Lease Purchase Agreement dated March 312000 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 2004 5.7500/,, $ - 528,233 S 28,233 2005 5 750 _ 491,000 28 233 519,2 33 $ 491,000 _$56,444 _ $547,466 Principal and inua est will be paid by the City fiom proceeds of the site lease and the lease agreement. The purpose of the lease aereement was to purchase approxi mately 12 acres in the south central portion o f the Citc for the Public Works Department. The principal payment is made at maturity and on March I and September I. 53 M City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 34, 2003 NOTE E - LONG-TERM OBLIGATIONS - Continued sri fD, oRiFacilities ProeA Series 1,993. The certificates were obligations of the Cityof Cape Girardeau, Missouri. Under a Lease Purchase Agreement between the City and the Cape Girardeau (Missouri) Public Facility Authority (the "Corporation"), the Corporation assigned the right to receive rental and other receipts from the City to Union Planters Bank of Cape Girardeau County (the "Trustee"). The purpose of the 1993 Series certificates was forthe acquisition, construction, furnishing, and equipping of a convention and recreational center, softball and soccer fields, and improvements to the City Half, the certificates were retired on April L 2003 using funds available to the City. Certificates c,f Participation Twi Lakes Proiect)_ Series -1994A. The certificates ween obf,,ijians of the City of Crape Girardeau, Missouri_ Under a Lease Purchase Agreement between tete City and the Cape Girardeau (Missouri) Public Facilities Authority (the "Corporation"), the Corporation assigned the right to receive rental and other receipts from the City to Union Planters Bank of Cape Girardeau County (the "Trustee"). The purpose ofthe 1994A Series certificates was to (1) pay the costs of certain improvements to the City's wahrior fs and sewerage systems and costs associated with the closing of City waste disposal site, (2) establish adebt service reserve fund for the Series 1994A Certificates, and (3) pay the costs of issuance of the Series 1994A Certificates. The outstanding principal on the bonds was retired on November (, 2002, with proceeds from the issuance of the Special Obligation Refunding and Improvement Bonds, Series 2002. 54 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATIONS —Continued .. S 1,160.000 Certificates of Participation (Capital Improvements Projects) Set ics 1997A Year Ending Interest Principal Interest June 30 Rate Due Due Total 2004 4.900% S 285,000 S 57,715 S 342,715 2005 5.000 490,000 43,750 533,750 2006 5.000 50,000 19,250 69,250 2007 5.000 335,000 16.750 351750 $1,1 60,000 $1,297,465 —513.7,405 The ccrtficales are obligations of the City of Cape Girardeau, Missouri under a Lease Purchase Agreement between the City and the Cape Girardeau (Missouri) Public Facilities Authority (the "Corporation'), the Corporation will assign the right to receive rental and other receipts from the Cityto Union Planters National Bank (the "Trustee"). The purpose of the 1997A Series certjficaes is to (1) pay the costs of completing the construction, Furnishing and equipping of a convention and recreational facility that constituted part of the 1993 project, (2) pay the costs of acquiring, co rstructm furnishing and equipping various equipment and capital improvement projects, (3) fund the debt service requirements for the Series 1997A Certificates, and (4) pay the costs of Issuance of the Scries 1997A Certificates. Principal parnents are made annually on April 1, and interest payments are made semi-annually on April 1 and October 1. 55 City of Cape Girardeau, Missouri ' NOTES TO FINANCIAL STAPEMEN'I'S June 30, 2003 NOTE E - I,ONG-TERM OBLIGATIONS - Continued $'244 OGO Certificates of Pardeiaatian (Cavital hnArovements 1'roiectst. Series 1997B. Year Ending, Interest Principal Interest June 30 Rate Due Due 'I otal 2004 5.000% S 85,000 S 14,500 $ 99,500 2065 5.060 205 000 10;250 215.250 29 ,.000 —$24,750 _$313,'L24 The cei ti fixates are obligations of the City under a Lease Purchase Agreement between the City and the Cape Girardeau ( Missouri) Public Facilities Authority (the "Cog)oration"), the Corporation wi l I assign the right to receive rental and other receipts front the City to Union Planters National Bank (the "Trustee"), The purpose Of the 1997B Series certificates is to (I) defease $755,000 outstanding principal amount of Cape Girardeau (Missouri) Public Facilities Authority, Building and Equipment Leasehold Revenue Bonds (Airport I inprovement Project) Series 1990B, and (2) pay the costs of issuance of the Series 19978 Ccrtificates. Principal payments are made annually on April 1, and interest payments are made semi-annually on April 1 and October I. 56 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATIONS - Continued 57 52,815,000 Certificates of Participation (Renaissance Aircraft), Series 2001 Year Ending Interest Principal Interest June 30 Rate Due Due Total 2004 S- $157,487 5157,487 *2005 4.000% 90,000 157,487 247,487 *2006 4250% 110,000 152,931 262,931 *2007 4.300% 125,000 147319 272,319 2008 4.550% 125,000 140,940 265,940 2009 4.625% 130,000 135,253 265,253 2010 4.800% 135,000 129,240 264,240 2011 5.000% 140,000 122,760 262,760 2012 5.800% 150,000 115,760 265,760 2013 5.800% 160,000 106,760 266,760 2014 5.800% 165,000 97,160 262,160 2015 5.800% 175,000 87,260 262,260 2016 5.800% 190,000 76,760 266,760 2017 5.800% 200,000 65,360 265,360 2018 6.000% 210,000 53,360 263,360 2019 6.000% 225,000 41,180 266,180 ,. 2020 6.000% 235,000 28,130 263,130 2021 6.000% 250 000 14,500 264,50 2.815r)OQ $1,829,647 -4644647 * Includes taxable certificates of $45,000, $50,000, and $55,000 in years 2005-2007 with 6.125% coupon The certificates are obligations of the City under a Lease Purchase Agreement between the City and LIMB Bank, NA. The Corporation also acts as the trustee who receives the rental payments for the benefit of the certificate holders. The purpose of the 2001 Series certificates is to construct and equip an airport manufacturing facility to be leased to Renaissance Aircraft, LLC. Principal payinenls are made annually on April 1, and interest payments are made semi-annually on April 1 and October 1. 57 City of Cape Girardeau, Missouri NOTES TO FINANCIAL. STATEMENTS June 30, 2003 NOTE E - LONG-TERM OBLIGATIONS -Continued The annual requirements to amortize all debt outstanding as of June 30, 2003 including total interest payments of 541,059,452 are as follows: 58 General Special Leasehold Certificates Year Ending Obligation Obligation Revenue Revenue of June 30 Bonds Bonds Bonds Bonds Participation Total 58 2004 $435,625 $439,030 $6,528,044 $ 68,033 $599,702 S8,070,434 2005 - 591,955 6,647,944 558,683 996,487 8,795,069 2006 - 578,655 6,812,579 39,050 332,181 7,762,465 2007 - 405,093 7,098,155 39,600 624,069 8,166,917 2008 - 394,905 7,304,773 40,050 265,940 8,005,668 2009 - 389,380 7,403,608 39,400 265,253 8,097,641 2010 - 365,130 7,029,620 39,700 264,240 7,698,690 2011 - 170,655 6,332,357 39,900 262,760 6,805,672 2012 - 164,455 7,482,293 - 265,760 7,912,508 2013 - 158,177 5,058,676 - 266,760 5,483,613 2014 - - 6,002,990 - 262,160 6,265,150 2015 - - 5,773,795 - 262,260 6,036,055 2016 - - 5,842,881 - 266,760 6,109,641 2017 - - 5,827,232 - 265,360 6,092,592 2018 - - 4,802,233 - 263,360 5,065,593 2019 - - 2,834,163 - 266,180 3,100,343 2020 - - 1,789,199 - 263,130 2,052,329 2021 1,604,55 264,500 1,929.050 $435&25 -3 65657 435 SL02,235,092 $864,416 S6 256 862 $-1I ;,44243( The cash and investments available to service revenue bonds are S918,371 and 57,776,863 for the governmental and business -type activities, respectively. The cash and im estments available to service the leasehold revenue bonds and cent 0cates of participation in governmental activities are $392,241 and S763.519 respectively. lncluded in business -type activities restricted cash on the statement of net assets is 52,012,996, which is the balance in the 2000 sewer project account which represent incomplete projects at Tune 3Q 2003. If the project funds are not used, the remaining balance can he applied against debt. 58 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE F - DEFICIT FUND BALANCES/RETAINED EARNINGS The Softball Complex Fund's total liabilities exceeded its total asset by 5141,206. NOTE G - PENSION PLAN 1. Plan Description The City of Cape Girardeau participates in the Missouri Local Government Employees Retirement System ( LAGERS), an agent multiple -employer public employee retirement system that acts as a common investment and administrative agent for local government entities in Missouri. LAGERS is a defined benefit pension plan which provides retirement, disability, and death benefits to plan members and beneficiaries. LAGERS was created and is governed by statute, Section RSMo. 70.600 - 70.755. As such, it is the system's responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401A and it is tax exempt. The Missouri Local Government Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary information. That report maybe obtained by writing to LAGERS, PO Box 1665, Jefferson City, MO 65102 or by calling 1-800-447-4334. 2. Fundin¢ Policy The City of Cape Girardcau's full-time employees do not contribute to the pension plan. The political subdivision is required to contribute at an actuarially determined rate; the cur ent rate is 7.3% (general), 4.5 (police) and 11.400/ (fire) of annual covered payroll. The contribution requirements of plan members are determined by the goveming body of the political subdivision. The contribution provisions of the political subdivision are established by state statute. 59 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE G - PENSION PLAN - Continued 3. Annual Pension Cost For 2003, the political subdivision's annual pension cost of S816,335 was equal to the required and actual contributions. The required contribution was determined as part of the February 28, 2001 and/or Febrnary 28, 2002 annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) a rate of return on the investment of present and future assets of 7.5% per year, compounded annually, (b) projected salary increases o[4.0% per year, compounded annually, attributable to inflation, (c) additional projected salary increases ranging from 0.0% to 4.2% per year, depending on age, attributable to seniority/merit, (d) pre -retirement mortality based on the 1983 Group Annuity Mortality table and (c) post- retirement mortality based on the 1971 Group Annuity Mortality table projected to 2000 set back I year for men and 7 years for women. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period. The unfunded ,. actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The amortization period at February 28, 2003 was 15 years. .� Three -Year Trend Information Fiscal Annual Percentage Net Year Pension Of APC Pension Ending Cost LAPQ Contributed Obheation r 06/30/01 $1,207,517 100% $0 06/30/02 1,094,292 100% 0 06/30/03 816,335 100% 0 Required Supplementary Info rnation Schedule of Fundmv Progress (a) (b) (b -a) (alb) ( c ) Entry Age Unfunded .Actuarial Actuarial Actuarial AM red Annual Valuation Value Accrued Liability Funded Covered .. Date of Assets LiabilityL( tAL Ratio Pavroll 02129/01 22.858,664 20,495,003 (2,363,661) 1124;, 10,616,603 02/28/02 25.373.273 31,626,719 (3,746,554) 117% 10,820,521 02/28/03 25,569,913 22,568,671 (3,001,242) 113'io 10,807,486 Note: The above assets and actuarial acaued liability do not include the assets and present value ofbeneflts associated with the Benefit Reserve Fund and the Casualty Rescr%e Fund. The actuarial assumptions were changed in conjunction with the February 28, 2002 annual actuarial valuations. For a complete description of the actuarial assumptions used in the annual valuations, please contact the LAGERS office in Jefferson City. City of Cape Girardeau. Missouri 60 NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE H - INTEREST EXPENSE Interest cost, including handling charges, totaling 53,156,857 excluding 584,028 of interfund interest, was incurred during the year ended June 30, 2003. No interest cost was capitalized as part of the cost of assets constructed during the period. NOTE 1 - INTERFUND RECEIVABLES AND PAYABLES The following is a summary of interfund balances as of June 30, 2003: Advance to/from other funds: 61 Advanccv from Advances to General Fund $ 1.633,944 $ - Gyuipment Rcpluccmcm Fund 114,695 R.,, Fond - 321,933 Airport Fund - 114695 Solid waste Fund - 750,000 GolfCoursc Fund - 372,011 Softt,A Complce Fund $ 190.0017 $ 1,748,639 $ 1,745,639 NOTE J - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains five enterprise funds which provide sewer, water, solid waste, golf, and softball complex services. Segment information for the year ended June 30, 2003 was as follows: Softball Smcer Water Solid Waste GolfCourse Complee Tmal Fund Fund Fund Fnnd Fund ILnmpt", Opcmring revenues .$2585.046 54912,012 $2,386,871 5453,493 814'934 S111500306 Dcprcciatlon 1,511.547 643,0110 61;111 15,873 8.817 3,164948 Opervtiny tonne (I rl (280.6117) 648,246 146,534 (454171 (243529) 325726 Opcattng trunetcn m 2300 062 130,000 - 76,670 224,401 2,111. US V,t Inco,", ( 1.ossl 2,049.1178 3.944298 1611,063 300,271 (25103) 6,42440- ( Capita: Cont""mw ns 871365 1077,052 11r48 286,413 - 4,144.688 Prnpertv, Plant and Cqulprn,nt Additions 5.,191.949 3.114.16 69840 2SY.373 - 0666.097 Uelttions !65121 (118.051) (30.041) (21_,19,) (2_2671 (181067) \et Wnrk ine Capital 160_'.3511 793,396 1097231 11,908 5.770 I3i695S TomlAsscts (1171?31 41409,884 147'43 5111,199 95.391 106,010140 Bonds and Onc,t l.o,,g Term I_iub,1it,,, Pacublc f,c, Op,ralinc km roues -.31(,254 9,467,17) 27038 - - 47055465 fatal S,t Ars S22,9-.8,006 S I _65.155 561,184 S 162,011 S (14],-116) 919 030.749 61 City of Cape Girardeau, Missouri NO'T'ES TO FINANCIAL STATEMENTS June 30, 2003 NOTE K - RESERVATION OF FOND EQUITY At June 30, 2003, the City had reserved its fund equity as follows: General Fund Reserved for emergency fund 52,927,721 Reserved for prepaid items 92,833 Reserved for advance 1,633,944 Reserved for mausoleum maintenance 83,072 Reserved for Local Access Channel 25,000 Reserved for encumbrances 110,112 $4,872.682 Airport Reserved for prepaid items $ 24,379 Reserved for encumbrances 2,162 Reserved for Long-term receivables 1,990,514 Reserved for Airport Facilities Project 144,40( 51161,515 Parks and Recreation Fund Reserved for prepaid items $ 781 Reserved for encumbrances 4,329 Transportation Sales Tax Trust Fund If Reserved for encumbrances 5649,584 Debt Scrvicc Reserved tot debt service S 834,850 Reserved Cor emergency fund 275,169 $1,110 019 Other Governmental Funds Reserved for encumbrances $2,382,336 Reserved for emergencies 652,465 Reserved for prepaid (29,493) Reserved for River Campus 522,041 $3,547 349 G2 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE I. - RESERVED RETAINED EARNINGS AND RESTRICTED ASSET ACCOUNTS At June 30, 2003, the City has restricted assets in its Proprietary Funds as follows: Depreciation Revenue Bond And Bond Sinking and R�placcment comnuc io t Reserve Fund Tatal ScwcrFund 5727,000 52.018,270 55,451,119 57,596,389 water Fund 58QOOD 3,157 2,372,977 2,q56,334 Solid waste Fund 2,31 618 928 5707,000 $202337__.$7824714 510,555,651 NOTE M - LANDFILL CLOSURE AND POSTCLOSURE CARE COST Slate and federal laws and regulations require the City to place a final cover on its landfill when closed and perfomn certain maintenance and monitoring functions at the landfill site for thirty years after closure. The City closed its landfill in the fiscal year ending June 30, 1994, and an expense provision and related liability were recognized at that time based on the future closure and postclosure care costs that were estimated to be incurred near or after the date the landfill no longer accepted waste. The entire amount of the estimated total costs for landfill closure and postclosure care costs was recognized in prior years since the recogmition is based on landfill capacity used to date and the landfill was filled to capacity in prior years. The estimated total future liability for landfill postclosure care costs is 5105,000 as of June 30, 2003, 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 3(1 However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City has used the option of a Contract of Obligation as the financial assurance instrument Cor the landfill. The City issued bonds in October 1994 from which the proceeds have been used to pay the closure costs. 63 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE N - RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters and employee health benefits. These risks, with the exception of those discussed in the following paragraphs, are covered by commercial insurance. Settled claims have not exceeded this commercial coverage in any of the past ten fiscal years The City is a member of the Missouri Public Entity Risk Management Fund, a not -fol -profit public entity insurance pool established by the state legislature. Through this pool, the City receives coverage for general liability, law enforcement liability, vehicle loss and accident liability, errors- and omissions, and employee benefit liability. Risks for these coverages are spread across members of the fund. Currently the fund is comprised of 580 Missouri counties, municipalities and, special districts. Premiums- for these coverages arc actuarially determined based on actual claims of the pool and individual claims of the City. Each year, portions of premiums not required because of below expected claims are returned to the members. TheCity has received refunds of premiums in each of the last ten years and has used them to offset the cost of the succeeding year's premiums. The City has established self-insuranceplans for employees' health insurance and workmen's compensation. Both of tltese 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 Cityprovided health coverage to its employees through a minimum premium plan administered by Right Choice Managed Care, which had an "A-" rating by A.M. Best. Under this plan the City paid the administrator a monthly premium for claims administration, cost management, and specific and aggregate stop loss coverage. The City reimbursed the administrator for claims paid up to the specific stop loss amount of 575,000 annually per employee and up to the aggregate stop loss amount of approximately $1,100,000 and 51,660,000 annuallybeginning January 12002 and 2003, respectively, for all employees. These limits apply only to claims made during the respective calendar years. Rates were charged by the internal service fund to the other city funds to cover the monthlypremium to thcadministrator and claims tip the aggregate stop loss an10u111. 64 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE. N - RISK MANAGEMENT - Continued Corporate Claims Management, Inc administers the City's workmen's 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 eovemge from Safety National Casualty Corp. that limits the maximum claims to $225,000 and $275,000, for regular employees and police employees, respectively. Additionally, $1,000,000 in coverage is provided for annual claims in excess of $535,000. 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. Safety National is rated 'A-" by A. M. Best. Claims liability is estimated using data supplied bythe administrator. The claims activity during the last five years is summarized as follows: CLAIMS LIABILITIES RECONCILIATION Balance, July 1, 1998 Provision for Incurred Claims Payment of Claims Balance June 30, 1999 Provision for Incurred Claims Payments of Claims Balance Jnnc 3Q 2000 Provision for Incurred Claims Payments of Claims Balance June 30, 2001 Provision for Incurred Claims Payments of Claims ' Balance.Line ',0. 2002 Provision for Incurred Claims Payment of Claims Balance Junc 30, 2003 Health Workers' Insurance Compensation Total S 220,000 S 388,996 S 608,996 478,229 121,155 599,384 (698,229 (212 946) (911 175 $ - $ 297.205 $ 297,205 778,268 252,105 1,030,373 (628,2M) (220 602) (848 870) $ 150,00o S 328,708 S 478,708 1,427,977 275,758 1,703,735 314529771 (294,7 (1,747,771 S 125,000 S 309,672 $ 434,672 1,274,192 327,400 1,601,592 X274.192) (343_045� (1617.237) S 125,000 S 294.027 $ 419.027 1,632,710 215,620 1,851,330 (1.573.710) (269250) _(1842,9601 184000 —S 243397 $ 427,197 65 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE O - 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 Assets. At June 30, 2003, utility receivables totaled $1,328,337. On the financial statements, the utility receivables are shown net of the allowance for doubtful accounts of $90,708. This results in net utility receivable of $1,237,629. During the year ended June 30,2003, the allowance was increased by 555,425 orapproximately .56% of tire current year's utility charges and accounts totaling 5969,012 were written off. The written off amounts had accumulated since 1985. NOTE P - COMMITMENTS AND CONTINGENCIES 1. Litigation Various claims and lawsuits are pending against the City. In the opinion of City management, the potential y loss on all claims and lawsuits will not be significant to the City's financial statements. 2. Grant Audit The City receives Federal and State Grants for specific purposes that are subject to review and audit by various Federal and State agencies. Such audits could result in a request for reimbursement by any of the .- Federal and State agencies for expenditures disallowed under the Icons 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 lune 30, 2003, the City had construction commitments outstanding of $3,149,950. The construction commitments represent incomplete portions of contracts entered into to construct the following: two stormwater projects, various street projects, a riverfont trail, water plant 41 expansion, Ranchito — Arena relief sewer, improvements at the sewer plant, and improvements at the transfer station. These contracts arc expected to be completed within the next fiscal year. 4. Encumbrances As of June 30, 2003, the City had encumbrances outstanding of S4 273,858. 66 5. Environmental Remediation City management is aware of one instance of envirotmtental contamination of City owned property. City management is actively resolving these concerns. A Plan Of Action has been approved by the Missouri Department of Natural Resources ("DNR") for the contamined site. in the opinion of City management, the expenses associated with environmental remediation of these and other potential sites will not be simiificant to the City's financial statements. 67 68 1 City Y of Cape Girardeau General Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 12.042,745 $ 12.042.745 $ 12,069,948 $ 27,203 Licenses 8 permits 1,086,200 1,086,200 1,080,469 (5,731) Intergovernmental 490,318 490,318 554589 60,271 Charges for services 364,393 364.393 352,161 (12.232) Internal charges 694,750 694,750 711,015 16,265 Fines and forfeits 888,000 888,000 768,343 (119,657) Miscellaneous 86,300 86,300 135,934 49.634 Investment revenue 214.674 214,674 173,945 (40,729) Special assessments - 7,094 7,094 Total revenues 15,867,380 15,867,380 15,849,498 (17,882) EXPENDITURES Current Administrative 1,691,539 1.759,539 1,734,321 25,218 Contingency 19.000 19,000 34,596 (15,596) Development Services 1,694,092 1,669,092 1,543,481 125,611 Parks and Recreation 1,284,609 1,303,359 1313,470 (10,111) Public Safety 8,408,594 8.727,244 8,534337 196.907 Public Works 2,057,747 2,047,847 2,033,578 14,269 15,155,581 15,526,081 15,189,783 336,298 Total expenditures 15,155,581 15,526,081 15,189783 336,298 Excess (deficiency) of revenues over (under) expenditures 711,799 341,299 659,715 318,416 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In 1,122.500 1,342,500 1,342,500 - Advance repayments 33,556 33,556 33,556 - IMusfersout (1,830,946) (1,892,446) (1,866,924) 25,522 Total other financing sources and uses and special items (674,890) (516,390) (490,868) 25,522 Net change, in fund balances 36,909 (175,091) 168,847 343,938 Fund balances --beginning 3.989,465 3,989.465 3,989.465 - Fundbalances-ending $ 4,026,374 $ 3,814,374 $ 4.158,312 $ 343.938 68 &Y on Capwnerded F 1 Y f III t Airport Statement of Revenues. Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 125,000 S 125,000 5 195,147 S ]0,14] Charges for services ]19,]99 ]19,]99 ]45,9]8 26,179 Miscellaneous 171,908 171,906 169,061 (2,847) Inveslmenl revenue 2,250 2,250 7,368 5,118 Trot revenues 1,018,957 1,018,957 1,11],554 98,597 EXPENDITURES Current Administrative 1,326,351 1,459,268 1,3]5,90] 83,361 1,326,351 1,459.268 1,3]5,90] 83,361 Debt service'. Interest 11,030 11,030 21,431 (10,401) Principal 39,630 39,630 39,009 621 50,660 50,660 60,440 (9,780) Total expenditures 1,3]],011 1,509,928 1 436.347 73,581 Excess (deficiency) of revenues over (under) expenditures (358,054) (490.971) (318,793) 1]2.1]0 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In 359.214 359.214 324,720 (34,494) Total other financing sources and uses and special items 359,214 359,214 324,720 (34,494) Net change In food balances 1,160 (131,]5]) 5,927 137,684 Fund balances -beginning 2,214.]2] 2,214,]2] 2.214,]2] - Fundbalances-- ending $ 2,215.887 $ 2,082,970 S 2,220,654 S 137,684 69 1 $ , 0 L CRy or Cape Luardem It It Park and Recreation Statement of Revenues. Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Inlergovernmental 5 - $ - S 14 $ 14 Charges for services 485,200 485,200 478.836 (6,364) Miscellaneous 6,000 6.000 2.637 (3,363) Investment revenue 2,700 2,700 3.400 700 Total revenues 493,900 493,900 484,887 (9,013) EXPENDITURES Current. Parks and Recreation 1232,84] 1,232,84] 1,19],384 35.463 1232,847 1,232,847 1,197,384 35.463 Total expenditures 1,232,84] 1,232,847 1,19],384 35,463 Excess(deficiency) of revenues over (under) expenditures (]38,94]) (]38.94]) (712,49]) 26,450 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in ]38,94] ]38,94] ]09,2]2 (29,675) Total other financing sources and uses and special items ]38,94] ]38,94] 709,272 (29,675) Net change In fund balances - - (3,225) (3.225) Fund balances — beginning 14,006 14,006 14,006 - Fundbelances—ending $ 14,006 $ 14,006 $ 10,781 70 1 1 Y A 1 1 1 1 +,uy of CaIL—andel Y Y 1 1 { i 1 Y Current. Trans Sales Tax Trust Fund Public Works - Debt service: Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (10) Iasu9ace cost For the Year Ended June 30, 2003 Capital outlay 628,700 Total expenditures 628.700 Excess (deficiency) of revenues Variance with over (under) expeodltures Budgeted Amounts 918,655 Final Budget - OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS NO 902 Bond proceeds Positive Total other financing sources and uses and special Items Original Final Actual Amounts (Negative) REVENUES (65,151) Fund balances -ending ($ 53,851) Inter9overnmenldl $ - $ - $ 41,211 $ 41,211 Investment revenue 15,000 15,000 54,463 39,463 Special assessments 25000 25000 256581 231581 Total revenues 40,000 EXPENDITURES 40.000 Current. 312,255 Public Works - Debt service: Interest (10) Iasu9ace cost 21,649 Capital outlay 628,700 Total expenditures 628.700 Excess (deficiency) of revenues 42,237 over (under) expeodltures 884,500 918,655 (588]00) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS NO 902 Bond proceeds 600,000 Total other financing sources and uses and special Items 600,000 Net change In fund balances 11,366 Fund balances - beginning (65,151) Fund balances -ending ($ 53,851) 71 40.000 352.255 312,255 10 (10) 10 (10) - 21,649 (21,649) - 20,588 (20,588) - 42,237 (42,237) 884,500 918,655 (34,155) 884,500 NO 902 (76,402) (844,500) (608,647) 235,853 600.000 1,253,178 653.178 600,000 1,253,178 653,178 (244,500) 644,531 889,031 (65,151) (65,151) - ($ 309,651) S 579.380 $ 889,031 71 1 1 1 i 1 f i i airy of Cape brand cip Debt Service Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 425,269 $ 425,269 $ 426,973 $ 1,704 Intergovernmental 9,751 9,751 10,211 460 Miscellaneous - - 27,150 27,150 Investment revenue 83,638 83.638 80,922 (2,716) Special assessments 42.000 42,000 179,572 137,572 Total revenues 560,658 560,658 724,828 164,170 EXPENDITURES Debt service: Administrative charges 10,886 12,886 24,975 (12,089) Call premium - - 4,575 (4,575) Interest 287,455 455,955 431,877 24,078 Issuance cost - 5,500 5,524 (24) Principal 1,375,000 3,680,000 3,697,300 (17,300) 1,673,341 4,154,341 4,164,251 (9,910) Total expenditures 1,673,341 4,154,341 4,164,251 (9.910) Excess (deficiency) of revenues over (under) expenditures (1,112,683) (3.593.683) (3,439,423) 154,260 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 928,232 1,423,232 1,427,168 3,936 Bond proceeds - - 339,874 339,874 Total other financing sources and uses and special items 928,232 1,423,232 1,767,042 343,810 Net change In fund balances (184,451) (2,170,451) (1,672,381) 498,070 Fund balances --beginning 2,772,622 2772,622 2,772,622 - Fundbalances-ending $ 2,588,171 $ 602,171 $ 1,100241 $ 498,070 72 NONNIAJOR FUND FINANCIAL, STATEMENTS m w $city of Cape Gvartlea. 1 Flood Protection Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue g - $ $ 19 $ 19 Total revenues - - 19 19 EXPENDITURES Total expenditures Excess (deficiency) of revenues over (under) expenditures 19 19 Net change in fund balances - - 19 19 Fund balances — beginning 501 501 501 Fund balances --ending $ 501 $ 501 $ 520 $ 19 73 1 i 1 1 I It 1 1 of Ct,...rard&,. Vision 2000 Statement of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Miscellaneous $ - $ - $ 700 $ 700 Investment revenue - - 72 72 Total revenues - - 772 772 EXPENDITURES Current: Development Services 1,500 1.500 1,992 (492) 1,500 1,500 1,992 (492) Total expenditures 1,500 1.500 1,992 (492) Excess (deficiency) of revenues over (under) expenditures (1,500) (1,500) (1,220) 280 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In 1,500 11500 1,500 - Total other financing sources and uses and special items 1,500 11500 1,500 - Netchangeinfund balances - - 280 280 Fund balances --beginning 2.518 2,518 2.518 - Funtlbalances --ending $ 2,518 $ 2,518 $ 2,798 $ 280 74 s p I it &y or Cap)muardeah C Convention and Tourism Statement of Revenues. E.penditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 1,222,000 $ 1,222,000 $ 1,234,390 $ 12,390 Charges for services 7,000 7,000 3,414 (3,586) Mlscellaneous 4,680 4,680 4,940 260 Investment revenue 40,500 40,500 49,251 8,751 Total revenues 1,274,180 1,274,180 1,291,995 17,815 EXPENDITURES Current, Administrative 461,838 503,838 399,827 104,011 461,838 503,838 399,827 104,011 Total expenditures 461,838 503.838 399.827 104,011 Excess (deficiency) of revenues over (under) expenditures 812,342 770.342 892,168 121.826 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out (600,000) (1,095,000) (1092559) 2,441 Total other financing sources and uses and special Items (600.000) (1,095,000) (1,092,559) 2.441 Net change In fund balances 212,342 (324,658) (200,391) 124,267 Fund balances -- beginning 1,639,554 1,639,554 1,639,554 - Fundbalances—ending $ 1,851,896 $ 1,314,896 $ 1439,163 $ 124.267 75 1 1 1 I Y 1 1 i 1 1 1 1 1 1 1 1 City of Cafe UuardIs.1 Downtown Business District Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amount. Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 18,800 $ 18,800 $ 19.879 $ 1,079 Investment revenue 600 600 818 218 Total revenues 19,400 19.400 20,697 1,297 EXPENDITURES Current: Development Services 19,400 19,400 15,988 3,412 19,400 19.400 15.988 3,412 Total expenditures 19,400 19,400 15.988 3,412 Excess (deficiency) of revenues over (under) expenditures - 4.709 4.709 Net change in fund balances - - 4,709 4.709 Fund balances-- beginning 24,315 24.315 24,315 - Fundbalances— ending $ 24,315 $ 24,315 $ 29,024 $ 4,709 76 1 i 1 1 1 1 1 1 1 1 It 1 1 1 1 1 1 1 1 City of Cape Girardeau Health Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 244,164 $ 244,164 $ 245,216 $ 1.052 Licenses & permits 8,500 8,500 2,753 (5,747) Intergovernmental 5.700 5,700 6.127 427 Investment revenue 23,020 23,020 16,852 (6,168) Total revenues 281,384 281,384 270,948 (10,436) EXPENDITURES Current: Public Safety 280,152 280,152 229,044 51,108 280,152 280,152 229,044 51,108 Capital outlay - - 14 (14) Total expenditures 280,152 280,152 229,058 51,094 Excess deficiency) of revenues over (under) expenditures 1,232 1,232 41,890 40,658 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Asset disposition - - 1,000 1,000 Transfers out - (220,000) (220,000) - Total other financing sources and uses and special items - (220.000) (219,000) 1,000 Net change In fund balances 1,232 (218,768) (177,110) 41,658 Fund balances - beginning 411,547 411,547 411,547 - Fund balances - ending $ 412,779 $ 192,779 $ 234,437 $ 41,658 77 it it 1 1 Y i 1 1 [-,y of Calx ou ardeL 1 i i i 1 1 Y Y Motor Fuel Tax Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Posilive Original Final Actual Amounts (Negative) REVENUES Intergovemmental $ 1,425,000 $ 1425.000 $ 1414,117 $ (10,883) Investment revenue 45,000 45,000 38,140 (6,860) Total revenues 1,470,000 1,470,000 1,452,257 (17,743) EXPENDITURES Current: Public Works - 7,200 12M) - - 7.200 7,200 - Capltalouilay - 3,000 3.621 (621) Total expenditures - 10,200 10,821 (621) Excess(defmlency) of revenues over (under) expenditures 1,470,000 1459,800 1,441,436 (18,364) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Other loan proceeds - - 83.830 83,830 Transfers out (1,554,432) (1,554,432) (1,554,432) - Totalotherfinancingsourcesandusesandspecialitems (1,554,432) (1,554432) (1,470,602) 83.830 Net change'm fund balances (84,432) (94,632) (29,166) 65.466 Fund balances -- beginning 1,007,632 1,007,632 1,007,632 - Fundbalances — ending $ 923,200 $ 913,000 $ 978,466 $ 65,466 78 it it If it a 11 k III of CaIt pe Uvarde It I If It it I 1 11 It Cap Imp Sales TaxFloodConirl Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 100,000 $ 100.000 $ 146,762 $ 46,762 Investment revenue 22,500 22500 25,405 2,905 Told l revenues 122,500 122,500 172,167 49,667 EXPENDITURES Current: Public Works - - 31,532 (31,532) - - 3-532 (31,532) Capital outlay 340,000 555,000 581,257 (26,257) Total expenditures 340,000 555,000 612,789 (57,789) Excess (deficlency)of revenues over (under) expenditures (217,500) (432,500) (440.622) (8.122) Net change in fund balances (217,500) (432,500) (440,622) (8,122) Fund balances — beginning 806.698 806,698 806 698 - F'undbalances—ending $ 589.198 $ 374,198 $ 366,076 ($ 8,122) 79 a i lk 11, It b If k try of Cage mnardeL _ Cap Impr Sales Tax-Wlr Sys Imp Statement of Revenues, Expenditures, and Changes in Fund Balances- Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 1,953,750 $ 1,953,750 5 1,924,553 $ (29,197) Investment revenue 12 775 12 775 73 660 b() 60.885 Total revenues 1,966,525 1,966,525 1,998,213 31,688 EXPENDITURES Debt service Interest 744,010 777.010 846,713 (69,703) Issuance at 125,269 125,269 69,411 55,858 Principal 730,000 730,000 730,000 - 1,599,279 1632,279 1,64-124 (13,845) Total expenditures 1,599,279 1,632,279 1,646,124 (13,845) Excess(deficiency) of revenues over (under) expenditures 367,246 334,246 352,089 17,843 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in - - 79,166 79,166 1 ransfers out (367,246) (487,246) (120,000) 367,246 Total other financing sources and uses and special Items (367,246) (487,246) (40,834) 446,412 Net change In fund balances - (153,000) 311,255 464,255 Fund balances — beginning 1,892,167 1,892,167 1,892,167 - Fundbalances—ending $ 1,892,157 $ 1,739,167 $ 2,203,422 $ 464.255 b() it it It , III , It It it ultyot L}ape Girardeau Cap Impr Sales Tax -Saw Sys Imp Statement of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 1,953,750 $ 1,953,750 $ 1,924,980 $ (26,]]0) Investment revenue 24,025 24,025 30,479 6,454 Total revenues 1,9]],]]5 1,9]],]]5 1,955.459 (22,316) EXPENDITURES Total expenditures Excess (deficiency) of revenues over (under) expenditures 1,9]],]]5 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers of (1,988,323) Total other financing sources and uses and special items (1,988,323) Net change In fund balances (10,548) Fund balances -- beginning 854,909 Fund balances — ending $ 844,361 1,9]],]]5 (1,988,323) (1,988,323) $ 844,361 81 1,955,459 (22.316) (2,088.062) (99,739) (2,088,062) (99,739) (132,603) (122,055) 854,909 - $ 722,306 is 122,055) i Y 1 1 1 1 1 1 I sur of C)pe ,irardlau Trans Sales Tax Trust Fund II Statement of Revenues. Expenditures, and Changes in Fund Balances- Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES Taxes $ 3,745,000 $ 3,745,000 $ 3,]38,56] $ (6,433) Investment revenue 120,000 120.000 106,135 (13,865) Spedal assessments - - 11,014 11,014 Total revenues 3.865,000 3,865,000 3.855,716 (9,284) EXPENDITURES Capital outlay 1,497,200 1.637,200 1.433,839 203,361 Total expenditures 1,497,200 1,637,200 1,433,839 203.361 Excess(defidency) of revenues over (under) expenditures 2,367.600 2,227,800 2421.8]] 194,0]] OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In 200,000 200,000 200,000 - Total other financing sources and uses and special items 200,000 200,000 204000 - Net change in fund balances 2.567,800 2,427,800 2,621,8]] 194,0]] Fund balancesbeginning1,032,017 1,032,017 1,032,017 - Fund balances --ending $ 3,599,817 $ 3,459,817 $ 3,653,894 $ 194,0]] 82 it I I I If If it ' lily of Cape ulrardiau I it + it General Capital Improvements Statement of Revenues. Expenditure. and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 531,630 $ 531,630 $ 116,283 $ (415,347) 1 t t noes men revenue - - 9,225 9,225 Total revenues 531.630 531,630 125,508 (406,122) EXPENDITURES Current, Administrative - 1,454 (1,454) - - 1,454 (1,454) Capital outlay 718.640 808,640 139,914 668,726 Total expenditures 718,640 808,640 141,368 667,272 Excess(defldency) of revenues over (under) expenditures (187,010) (277,010) (15,860) 261,150 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In 15,860 15,860 15,860 - Total other financing sources and uses and special items 15,860 15.860 15,860 - Netchangeinfund balances (171,150) (261,150) (0) 261,150 Fund balancesbeginning280,098 280,098 280,098 - Fundbalances--ending $ 108.948 $ 18,948 $ 280,098 $ 261,150 83 1 1 i 1 1 1 1 1 1 1 1 1 i i 1 f 1 ..,,f of CA.,o dirarA... Street Improvements Statement of Revenues. Expenditures. and Changes in Fund Balances - Budget and Actual For the Year Ended June 30. 2003 Variance with Budgeted Amounts Final Budget - Posltive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 643,350 $ 643.350 $ 3,462 $ (639,888) Miscellaneous - - 63,550 83.550 Investment revenue - - 26,161 26,161 Special assessments - - 17,502 17,502 Total revenues 643,350 643,350 130,675 (512,675) EXPENDITURES Debtservice: Issuance cost - - 5,356 (5,356) - - 5,356 (5,356) Capital outlay 1,279,700 1,607,100 674.508 932.592 Total expenditures 1,279,700 1,607,100 679,864 927,236 Excess(de0cancy) of revenues over (under) expenditures (636,350) (963,750) (549,189) 414,561 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers in 325.000 325,000 325,000 - Bond proceeds - - 326,030 326,030 Transfers out - - (6,376) (6,376) Total other financing sources and uses and special items 325,000 325.000 644,654 319,654 Net change in fund balances (311,350) (638,750) 95,465 734,215 Fund balances — beginning 770,375 770,375 770,375 - Fundbalances -- ending $ 459.025 $ 131,625 S 865,840 $ 734,215 84 It It 1 It It If Lay of Ca$e ovardsl k it k k it k I F 321,]2] Park Improvements EXPENDITURES Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Total expenditures For the Year Ended June 30, 2003 Excess (deficiency) of revenues over (under) expenditures Variance with OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Budgeted Amounts Final Budget - 80,452 Total other financing sources and uses and special items Positive Original Final Actual Amounts (Negative) REVENUES 111,483 Fund balencas—ending $ Intergovernmental $ 321,]2] S 321,]2] $ 3,064 $ (318,663) I t I noes men revenue - Total revenues 321,]2] EXPENDITURES Capital outlay 402,159 Total expenditures 402,159 Excess (deficiency) of revenues over (under) expenditures (80,432) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In 80,452 Total other financing sources and uses and special items 80,452 Net change in fund balances 20 Fund balances — beginning 111,483 Fund balencas—ending $ 111,503 3,]19 3.719 321,727 6,783 (314,944) 423,659 457,453 (33.794) 423,659 457,453 (33,794) 80,452 80,432 (20) 80,452 80,432 (20) (21480) (370,238) (348,758) 111 483 111,483 - $ 90,003 IS 258,755) ($ 348,]58) 85 1 i 1 1 i 1 1 i I of Ci,_ 1 1 1 1 Y 1 Y 1 _,-i _irardt__ Community Dev Block Grant Pi Statement of Revenue., Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30. 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Intergovernmental $ 496.500 $ 496,500 $ 276,773 $ (219,727) Investment revenue - - 3,296 3,296 Total revenues 496,500 496.500 280.069 (216,431) EXPENDITURES Current: Development Services 521.500 521.500 85,502 435.998 521,500 521,500 85,502 435,998 Debt service: Interest - _ 430 (430) - - 430 (430) Capital outlay - - 8,070 (8,070) Total expenditures 521,500 521.500 94.002 427,498 Excess( deficiency) of revenues over (under) expenditures (25,000) (25.000) 186,067 211.067 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfersm 25.000 25,000 34,999 9,999 Total other financing sources and uses and special items 25.000 25,000 34,999 9,999 Net change in fund balances - - 221,066 221.066 Fund balances — beginning (142,615) (142.615) (142.615) - Fundbalances— ending ($ 142,615) ($ 142.615) $ 78,451 $ 221,066 86 nvem tiey of Cape uvardeau , 1 1 11 , 1 $ 1 16,8]5 FAU Grant Prefaces EXPENDITURES Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Total expenditures For the Year Ended June 30, 2003 - Excess (defic9ency)ofrevenues over (under) expenditures Variance with Budgeted Amounts 16,875 Final Budget - Net change in fund balances 16 875 Positive Original Final Actual Amounts (Negative) REVENUES t t $ 16875 c '�"'� �^^ s en revenue Total revenues 16,8]5 EXPENDITURES Capital outlay - Total expenditures - Excess (defic9ency)ofrevenues over (under) expenditures 16,875 Net change in fund balances 16 875 Fund balances -- beginning 388,482 Fund balances —ending $ 405,357 16,875 $ 405,357 87 $ 13,090 13,090 11 "1 (123) 388.482 $ 388,359 (3,785) (13.213) (13.213) (16,998) ($ 16,998) t it b it A 1 11 h I 1 It 1 It k 1 It ony of CTpe e.irardlau Corp Flood Control Projects Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual For the Year Ended June 30. 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Investment revenue $ 13,500 $ 13,500 $ 21,319 $ 7,819 Total revenues 13,500 13,500 21,319 7,819 EXPENDITURES Current. Public Works - _ 48,291 (48,291) - - 48,291 (48,291) Capital ou0ay - 420,000 374,910 45,090 Total expenditures - 420,000 423,201 (3,201) Excess (deficiency) of revenues over (under) expenditures 13,500 (406,500 (401,882) 4,618 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers out - (212,000) (212,000) - Total other financing sources and uses and special items - (212.000) (212,000) - Netccangeinfund balances 13.500 (618,500) (613,882) 4,618 Fund balanced — beginning 928,327 928,327 928.327 - Fundbalances— ending S 941,827 $ 309,827 $ 314,445 $ 4,618 88 it b b , , , City okape Girardeau Sewer Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 REVENUES Residential charges Commerical charges Other fees and charges Miscellaneous Total revenues EXPENDITURES Contractual services General ope2Ung expenses Internal service expense Material and supplies Personnel services Special projects expense Capin outlays Debt service: Administrative cbarges Call premmm Interest Issuance cast Principal Budaetetl Amounts Original 5,9]925] Final 2.300,062 over (under) expenditures Final Budget - $1486,000 (3,395,]5]) 51489000 Actual Amounts 1,007,500 (Negative) 1 00] 500 47,000 47,800 47,000 150,000 40,000 44,000 40,000 3,621,379 41,925 78,583 249,075 923,150 38,600 1,899.550 520,906 1 934,948 2,596,644 Total expenditures 5,9]925] Excess (deficiency) of revenues 2.300,062 over (under) expenditures Final Budget - 429805 (3,395,]5]) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Actual Amounts Intergovernmental (Negative) Transfersln 1,988,323 Investment revenue 47,800 Connection fees 150,000 Special assessments 44,000 Bond proceeds 3,621,379 Asset disposition - Total other financing sources and uses and special items 2,230,123 Net change In fund balances (1,165,634) Fund balances-be9inning 4,844,451 Fund halances-aorto, $ 3,678,817 89 38,185 78,583 24],295 923,150 39065 2.]02.605 4,1]9,613 140,790 517,906 10,000 2,969,948 3.638,644 7,818,257 (5,23],75]) 2,200,323 47,800 150,000 44,000 (2.795,634) 4,844 451 5 2,048,817 (4,]32 794) 504,963 6,85] 6,857 Variance with 2.300,062 99,739 Final Budget - 429805 382,005 Positive Actual Amounts (4,830) (Negative) 120,698 76,698 $1,501,284 618,754 $15.284 969.813 33 (37,687) 49010 3,621,379 (990) 46,665 (1,111415) 6.665 2,563,]]2 4,844.451 (19728) 107,796 $ 3,733,036 45,934 42,470 (4.285) 66,361 12,222 227.860 19 435 885,173 37,977 42,562 (6,497) 2,015,952 686,653 3,388.174 791439 171,232 (30442) 850 (850) 314,697 203,209 10,046 (46) 3,411,567 (441,619) 3.908,392 (269,748) 7,296.566 521.691 (4,]32 794) 504,963 6,85] 6,857 2.300,062 99,739 429805 382,005 145,1]0 (4,830) 120,698 76,698 618,754 618,754 33 33 3,621,379 1,1]9,256 (1,111415) 1.684.219 4,844.451 - $ 3,733,036 5 1,684,219 1 1 i 1 1 1 1 1 1 1 1 i i i 1 1 1 II l City of Cape Girardeau Water Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Residential charges $2,796,000 $2,796,000 $2,771,097 ($24,903) Commerical charges 1,944.000 1,944,000 1,966,018 22,018 Other fees and charges 119,000 119.000 139,731 20,731 Miscellaneous 13,500 13,500 24,895 11,395 Total revenues 4,872,500 4.872.500 4,901,741 29,241 EXPENDITURES Contractual services 2,914,285 2,968,051 2,900,045 68,006 General operating expenses 149,000 149,000 152,195 (3,195) Internal service expense 50,822 50,822 48,050 2,772 Material and supplies 380,368 388,068 377,417 10,651 Personnel services 115,760 115,760 117,305 (1,546) Special projects expense 45,000 45,000 43,712 1,288 Capital outlay 272,725 259.459 196,383 63,076 3,927,960 3,976,160 3,835,108 141,052 Debt service: Administrative charges 1,900 1,900 6,724 (4,824) Interest 566,739 567,339 566,296 1,043 Issuance cost - 6,400 6,393 7 Principal 575.000 960,000 960,000 - 1,143,639 1,535,639 1,539,413 (3,774) Total expenditures 5,071,599 5.511 799 5,374,521 137,278 Excess (deficiency) of revenues over (under) expenditures (198099) (639,299) (472,780) 166,519 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Intergovernmental - - 69,493 69,493 Transfers In - 120.000 120,000 - Investment revenue 127,750 127,750 182,189 54,439 Special assessments 13,200 13,200 42,839 29,639 Bond proceeds - - 393,753 393,753 Asset disposition 91,800 91,800 73,535 (18,265) Total other financing sources and uses and special items 232,750 3fi2 760 881,809 529,059 Net change in fund balances 33,651 (286,549) 409.029 695.578 Fund balances -- beginning 3,389,501 3,389,501 3,389,501 - 90 Fundbalances-ending $ 3,423,152 $ 3.102.952 $ 3798.530 $ 695.578 1 It 1 i 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 City of Cape Girardeau Solid waste Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Residential charges $1,685,500 $1,685,500 $1.694,054 $8,554 Commerical charges 27,000 2],000 27,632 632 Transfer station charges 489.000 489,000 523.025 34,025 Other teas and charges 66.000 66,000 74,875 8,875 Miscellaneous 14,000 14,000 28.482 14,482 Total revenues 2,281,500 2 281,500 2,348,068 66,568 EXPENDITURES Contractual services 745,658 752,258 762,648 (10,390) General operating expenses 32,978 32,978 57,745 (24,767) Internal service expense 141,180 141,180 159,599 (18,419) Material and supplies 86,585 87,864 70,912 16,952 Personnel services 1,033,538 1,033,538 989,444 44,094 Special projects expense 89,875 89,875 88,543 1,332 Capital pulley 153,000 145,121 126,855 18.265 2,282,814 2,282,814 2,255,746 27,068 Debt service: Interest 49,468 49,168 44,505 4,663 Issuance cost - 4,400 4,400 (0) Principal - 265,000 265,003 (3) 49,468 318,568 313,908 4,660 Total expenditures 2,332,282 2,601,382 2.569.654 31,728 Excess (deficiency) of revenues over (under) expenditures (50,782) (319,882) (221,586) 98,296 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Intergovernmental - - 13,848 13,848 Investment revenue 36,000 36,000 36,715 715 Bond proceeds - - 271,030 271,030 Asset disposition - - 14,465 14,455 Total other financing sources and uses and special items 36,000 36,000 336,058 300.058 Net change In fund balances (14,782) (283,882) 114,472 398,354 Fund balances - beginning 723,441 723,441 723,441 - Fundbalances-ending $ 708,659 5 439,559 $ 837,913 $ 398,354 91 1 Y W 1 f 1 i f � i 1 i 1 1 L 1 1 i City of ape Girar eau Golf Course Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES User fees $448,550 $448,550 $383,075 ($65,475) Concession revenues 79,000 79,000 63.531 (15,469) Equipment sales 8,000 8,000 6,364 (1,636) Miscellaneous - - 484 484 Total revenues 535,550 535,550 453,454 (82,D96) EXPENDITURES Contractual services 21,095 21,095 29,467 (8,372) General operating expenses 48,475 48475 43,495 4,979 nternal service expense 56,962 56,962 49,305 ],65] Material and supplies 65,826 64,226 66,414 (2,188) Personnel services 269,267 269,267 265,879 3,388 Special projects expense 6,700 6,700 6,976 (276) Capital outlay 10,000 11,600 11.363 237 478,325 478,325 472,901 5,424 Debt service: Interest 19,278 19278 19.845 (567) Principal 17,989 17,989 17,989 0 3]26] 3].26] 37,834 (567) Total expenditures 515,592 515,592 510,735 4,857 Excess (deficiency) of revenues over (under) expenditures 19,956 19.958 (57,281) (]],239) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfers In - 41,000 76,670 35,670 Investment revenue 1,575 1,575 811 (764) Asset disposition - - 1,725 1,725 Transfers out (20,700) (20,700) - 20,700 Total other financing sources and uses and special items (19,125) 21,875 79,206 57,331 Net change In fund balances 833 41,833 21,925 (19,908) Fund balancesbeginning(16,255) (16,255) (16.255) - Fundbalances- ending ($ 15,422) $ 25,578 $ 5,670 ($ 19,908) 92 k 1 $ Y $ k city oAl Girleau Softball Complex Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Userlees $66,000 $66.000 $60,959 ($5,041) Concession revenues 64,000 64,000 ]0.]36 6,736 Equipment sales 11,000 11,000 11,868 868 Miscellaneous - - (840) (640) Total revenues 141,000 141,000 142,923 1,923 EXPENDITURES Current: Contractual services 15.905 16,035 14,486 1,549 General operating expenses 49,153 40,153 53.667 (4,514) Internal service expense 27,138 2],138 23,094 4,044 Material and supplies 51,516 51,386 57128 (5,842) Personnel services 232,438 232,438 224,507 7,931 Special projects expense 10,000 10,000 8,818 1,182 386,150 386,150 381,800 4,350 Debt service: Interest 8,550 8,550 7,696 854 8,550 8,550 7,696 854 Total expendl(ures 394,700 394,700 389,496 5,204 Excess(deficiency) cfrevenues over (under) expenditures (253,700) (253,700) (246.573) ],12] OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Intergovernmental - - 101 101 Transfers In 252,125 252,125 224.403 (2],]22) Investment revenue 1,575 1,575 1,527 (48) Total other financing sources and uses and special items 253,700 253,700 226,031 (27,669) Net change in fund balances - - (20,542) (20,542) Fund balances -beginning 21,786 21,786 21,786 - Fundbalances- ending S 21.786 $ 21]86 $ 1,244 ($ 20,542) 93 1 1 1 1 1 i 1 { (-„r uf CaP'b-ardl Management Information Systems Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Internal char es $ 322 550 x x ^^^ __^ a• g 66,842 Total revenues 322,550 EXPENDITURES (3,240) Contractual services 65,890 General operating expenses 7,145 Material and supplies 14,400 Personnel services 94,468 Capital outlay 64,400 2,996 246,303 Debt service'. 5,084 Administrative charges 250 Interest 6,860 Principal 70,000 (8,710) 77,110 Total expenditures 323,413 Excess (deficiency) of revenues $ 89,593 over (under) expenditures (863) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Investment revenue 1,125 Asset disposition - Total other financing sources and uses and special Items 1,125 Net change In fund balances 262 Fund balances - beginning 98,041 Fund balances -ending $ 98,303 65,890 66,842 (952) 7,145 10,385 (3,240) 14,400 20,221 (5,821) 94,468 94,627 (159) 64 460 69.387 (4 9 17) 6,860 6,860 - 70,000 70,000 - 77,110 77,616 (506) 323,413 339,078 (15,665) (863) (16.528) (15,665) 1.125 2,996 1,871 - 5,084 5.084 1,125 8,080 6,955 262 (8,448) (8,710) 98,041 98,041 - $ 98.303 $ 89,593 is 8,710) 94 1 1 1 1 1 1 Y 1 / 1 i 1 1 i i i 1 It i City of Cape Girardeau Fleet Management Statement or Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30. 2003 95 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Internal charges $1,018,000 $1,018,000 $962.730 ($55,270) Miscellaneous - - 1,197 1,197 Total revenues 1,018.000 1,018,060 963,927 (54,073) EXPENDITURES Contractual services 149,035 149,635 113,177 36,458 General operating expenses 3,150 3,150 6,402 (3,252) Internal service expense 2,297 2297 2,297 - Material and supplies 296,788 298,555 284,392 14,163 Personnel services 527,390 527,390 515,578 11.812 Capital outlay 14,300 11,933 9,656 2,277 992,960 992,960 931,502 61,458 Debt service: Interest 11 11 12 (1) Principal 459 459 459 0 470 470 471 (1) Total expenditures 993,430 993,430 931,973 61,457 Excess (deficiency) of revenues over (Linder) expenditures 24,570 24,570 31,954 7,385 OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Compensation for damages - - 4,300 4,300 Investment revenue 2,700 2,700 7.109 4,409 Transfers out (28,232) (28,232) (28.233) (1) Total other financing sources and uses and special Items (25,532) (25,532) (16,824) 8,708 Net change in fund balances (962) (962) 15,130 16,092 Fund balancesbeginning162,105 162,105 162,105 - Fundbalances-ending $ 161,143 $ 161,143 $ 177,235 $ 16,092 95 1 1 1 1 1 1 1 1 1 i 1 1 1 f 1 1 1 1 1 City of Cape Girardeau Fringe Benefits Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 3003 96 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Internal charges $1.738,182 $1,938,182 $2,036,020 $297.838 Miscellaneous - - 240 240 Total revenues 1.738.182 1]38,182 2,036,260 298,078 EXPENDITURES Current Contractual services 1.575.900 1,575,900 2,009,757 (433,857) General operating expenses - - 1,870 (1,870) 1,575,900 1,575,900 2.011 627 (435,727) Total expenditures 1,575,900 1,575,900 2,011,627 (435,727) Excess(deficlency) of revenues over (under) expenditures 162,282 162.282 24,633 (137,649) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Investment revenue 11,250 11,250 16,304 5,054 Transfers out (173,500) (173,500) (173,500) Total other other financing sources and uses and special items (162,250) (162,250) (157,196) 5.054 Net change In fund balances 32 32 (132,563) (132595) Fund balancesbeginning198,832 198,832 198,832 - Fundbalances--ending $ 198,864 $ 198,864 $ 66.269 ($ 132,595) 96 III 1 1 1 It 1 1 1 1 It 1 1 1 1 1 It 1 1 1 City of Cape Girardeau Risk Management Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 Budgeted Amounts Original Final Actual Amounts REVENUES Internal charges $228,465 Total revenues 228,465 EXPENDITURES Current'. Contractual services 361,000 General operating expenses 20,000 Material and supplies 5.000 386,000 Total expenditures 386,000 Excess (deficiency) of revenues over (under) expenditures (151,535) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Investment revenue 61,500 Total other financing sources and uses and special items 61,500 Net change in fund balances (90,035) Fund balances -- beginning 1,314,507 Fund balancesending$ 1,224,472 97 c". aaz 361,000 20,000 5.000 386,000 386.000 67,500 61,500 $ 1,224,472 2]1,601 22,735 294 319 53,3]2 53,312 $ 1,298,376 Variance with Final Budget Positive (Negative) ($3,632) (3,632) 89,399 (2,]35) 5,000 91 a" 88,032 (14,125) $ 73,904 I 1 1 1 i 1 1 1 1 1 1 1 1 i 1 f i 1 1 City of Cape Girardeau Equipment Replacement Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2003 98 Variance with Budgeted Amounts Final Budget - Positive Original Final Actual Amounts (Negative) REVENUES Internal charges $363,665 $ 363,665 $298,947 ($64,718) Total revenues 363,665 363.665 298,947 (64,718) EXPENDITURES General operating expenses _ _ 2,049 (2,049) Capital outlay 484,000 484,000 553,621 (69,621) 484,000 484,000 555,669 (71,669) Debt service: Administrative charges 550 550 ]]] (227) Interest 21,632 21,632 7,445 14.187 Issuance of 15,000 15,000 - 15,000 Principal 55,000 55,000 25,000 30.000 92,182 92,182 33,222 58,960 Total expenditures 576,182 576,182 588,891 (12,709) Excess be(Cleney) Of revenues over (under) expenditures (212,517) (212.517) (289.844) (77,427) OTHER FINANCING SOURCES (USES) AND SPECIAL ITEMS Transfersln 159.000 159,000 179,500 20,500 Inveetmentmvenue 29.195 29,195 24,237 (4,958) Bond proceeds 340,000 340,000 - (340.000) Other loan proceeds - - 400,000 400,000 Advance repayments 25,305 25,305 25,305 - Assetdisposition - - 11,600 11,600 Total other financing sources and uses and special items 553,500 553,500 640.642 87,142 Net change in fund balances 340,983 340,983 350,698 9,715 Fund balances - beginning 325,681 325,681 325,681 - Fundbalances- ending $ 666,664 $ 666,664 $ 6]6,3]9 $ 9.715 98 ANNUAL FEDERAL FINANCIAL COMPLIANCE SEC"MON BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri Compliance We have audited the compliance of City of Cape Girardeau, Missouri, with the types of compliance requirements described in the US. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to its major federal program for the year ended .lune 30, 2003. 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. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of City of Cape Girardeau, Missouri's management. Our responsibility is to express an opinion on City of Cape Girardeau, Missouri's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United Stales of America; the standards applicable to financial audits contained in Government Auditing S'tandaids, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments. and Non-Poofit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirensnts 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, eaidence about 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. Our audit does not provide a legal determination on City of Cape Girardeau, Missouri's compliance with those requirements. 99 16 So. Silver Springs Road 4018 Sycamore Cairo, Illinois 62914 Cape Girardeau, Missouri 63703 105 So. Hope Jackson, Missouri 63755 Telephone (618) 734-3300 Telephone (573) 334-7971 Telephone (573) 243-3991 Facsimile (618) 734-3303 Facsimile (573) 334.8875 Facsimile (573) 243-3186 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri Compliance We have audited the compliance of City of Cape Girardeau, Missouri, with the types of compliance requirements described in the US. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to its major federal program for the year ended .lune 30, 2003. 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. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of City of Cape Girardeau, Missouri's management. Our responsibility is to express an opinion on City of Cape Girardeau, Missouri's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United Stales of America; the standards applicable to financial audits contained in Government Auditing S'tandaids, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments. and Non-Poofit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirensnts 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, eaidence about 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. Our audit does not provide a legal determination on City of Cape Girardeau, Missouri's compliance with those requirements. 99 In our opinion, City of Cape Girardeau, Missouri complied, in all material respects, with the requirements referred to above that are applicable to its major federal program for the year ended June 30, 2003. Internal Control Over Compliance The management of City of Cape Girardeau, Missouri is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered City of Cape Girardeau, Missouri's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components y does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws-, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Honorable Mayor, Members of the City Council, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Cape Girardeau, Missouri J November 7. 2003 100 BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. Certified Public Accountants 16 So. Silver Springs Road 4018 Sycamore 105 So. pope Cairo, Illinois 62914 Cape Girardeau, Missouri 63703 Jackson, Missouri 63755 Telephone (618) 734-33M Telephone (573) 334.7971 Telephone (573) 243-3991 Facsimile (618) 734-3303 Facsimile (573) 334-8875 Facsimile (573) 243-3186 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENT'S PERFORMED IN ACCORDANCE WITH GOYERNMENTAUDITINC STANDARDS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the basic financial statements of the governmental activities, each major fund and the aggregate remaining fund information of City of Cape Girardeau, Missouri as of and for the year ended June 30, 2003, which collectively compromise the City's basic financial statements and have issued our report thereon dated November 7, 2003. 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. Compliance As part of obtaining reasonable assurance about whether City of Cape Girardeau, Missouri's general purpose financial statements are free of material misstatement, we perfomred tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which would have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Goi-counent Auditing Standards. Intemal Control Over Financial Reporting In planning and performing our audit, we considered City of Cape Girardeau, Missouri's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the 101 design or operation of one or more of the internal control components docs not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of perfenning their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we would consider to be a material weakness. This report is intended solely for the information and use of the Honorable Mayor, Members of the City Council, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. BEUSSINK, HEY, ROE, SEABAUGH & STRODER, L.L.C. N Roe X5 4 6- Cape Girardeau, Missouri November 7, 2003 102 CITY OF CAPE GIRARDEAU, MISSOURI SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2003 Federal CFDA Program Federal Grantuo'Pass-Through Grantor Prourmn Title Number Number Disbursements U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. Passedthrough Missouri Department of _ Economic Development - Community Development Block Grana/ Slate's Program 111 14.228 2000 -ED -14 S 207,518 2002 -ND -04 63,045 S 270,563 Emergency Shelter Grants Program (ESG) 14.231 ER01640401 31,717 TOTAL U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT S 302,280 US DEPARTMENT OF.IUSTICE_ Gang -Free Schools and Communities - Community - Based Gang Intenention 16544 Al C03000035 S 4,215 Passed Through Missouri Department of Public Safety - VictimsofChildAbuse 16547 01-JJTS-01 20,649 Crime Victim Assistance 16575 2000-VOCA-0010 S 6,525 2000-VOCA-0110 19.787 26,112 Local Law Enforcement Block Grana Program 16.592 00 -LB -BX -2495 S I2,360 01 -LB -BX -3823 4.009 16,369 E,eculice Office for Need and Seed 1639; N/A 20,808 Bulletproof Vest Partnership Proe am 16.607 NIA 9,e48 TOT9L It S- DEPARTMENT OF JUSTICE S 97.901 The Accompanying Notes to Schedule of E\pcnditwes of Federal A,ards Are an Integral Part of This Report. CITY OF CAPE GIRARDEAU, MISSOURI SCHEDULE OF EXPF.NDI'LURFS OF FEDERAL AWARDS For the Year Ended June 30, 2003 Federal CFDA Program Federal Grantor/Pass-Throunh Grantor Pro,ram'l-nle Number Number U.S. DEI?ARTMF.NT OF TRANSI'OR'FAVON: Airport huprovement Progrum 20.106 3-29-0013-08 Passed Through Missouri Deparhncnt of ,. Transportanon- Disbursements I IighWay Planning and Construction 20.205 STP -1500(009) S 8,743 Fbrnmla Grants for Other Than Urbanaed Areas Stale and Community Ilightvay Safety ,S 1 P-1500(011) 49,019 SLI' -1500(005) 1176 STP -1500(001) 1.286 20.509 MO -I S -X023 20.600 02 -SA -09-2 S 29,510 02-YA-03-2 32-859 03 -SA -09-2 35,103 03 -AL -03-3 1.180 Alcohol Translcr Funds (2) 20. 02 -154 -AL -40 Essential Air Service Pro_ am (2) 20. TOTAL U.S. DEPARTMENT OF TRANSPOR"I Al ION The Accompanying Notcs to Schedule ofhxpcnditures of Fcdcra] Aearck Arc an Inlcgral Part of'rhis Report. 104 S 43.805 61224 97,652 2_>83 21,920 S 345 9.35 CI IY Oh CAPE GIRARDEAU, MISSOURI SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2003 105 Federal CFDA Program -- Federal Granlor/Pass-Throueh Grantor Pro�rzam Title Number Number Disbui emenls U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY: Passed Through Missouri Stale Emergency Public Assistance Grants 83.544 FEMA 1412 -DR -MO $ 119,757 Hazard Mitigation Grant Program 83.548 NEMA 1403 -DR -MO 22,179 TOTAL U.S. FEDERALEMERGENCY MANAGEMENT AGENCY S 141,936 ']-OTAL FEDERAL AWARDS S 891.062 (1) Identihedmajorprogram. _ (2) A CFDA number has nut yet been assigned to this assistance. The Accompanying Notes to Schedule of Expenditures of Federal Awards Are an Integral Part of This Report. 105 ClIY OF CAPE GIRARDAU MISSOURI NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: A. Purpose of Schedule and Reoorrmn Entity: The accompanying Schedule of Expenditures of Federal Awards has been prepared to comply with OMB Circular A-133. This circular requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal financial assistance program as identified in the Catalog of Federal Domestic Assistance (CFDA) and identification of programs that have not been assigned a CFDA number as "Other Federal Assistance." The schedule includes all expenditures of federal awards administered by the City. B. Basis of Presentation: The schedule is presented in accordance with OMB Circular A-133, which defines federal financial assistance "...assistance that non-federal entities receive or administer in the form of grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts received as reimbursement for services rendered to individuals." C. Basis of Accountine: 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. 106 CITY OF CAPE GIRARDEAU MISSOURI SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003 1. SUMMARY OF AUDITORS' RESULTS: Financial Statements Type of Auditors' report issued: Unqualified Internal control over financial reporting: . Material weaknesses identified? yes X no . Reportable conditions identified that are not considered to be material weaknesses? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: .. . Material weaknesses identified? Yes X no . Reportable conditions identified that are not considered to be material weaknesses? yes X none reported Type of Auditors' report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance "ith Section 510(x) of Circular A-1339 _ yes X no Identification of major programs. CFDA Numbcr Name of Federal Proeram 14.228 Community Development Block GrantslStatc's Program Dollar threshold used to distinguish ' between type A and type B programs: S300.,000 .Auditee qualified as low-risk audilec: X yes no 107 2. FINANCIAL STATEMENT FINDINGS: No findings or questioned costs were noted that are required to be reported. 3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: No findings or questioned costs were noted that are required to be reported. 108 CITY OF CAPE GIRARDEAU, MISSOURI SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended .lute 30, 2003 02-1 Findine(Internal Control): Certain aspects of the investment policy of the City of Cape Girardeau, Missouri are not being followed. Recommendation: The City should comply, consistently, with all aspects of the adopted investment policy. Status: Implemented. 109