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CITY OF CAPE GIRARDEAU, MISSOURI
Cape Girardeau, Missouri
For the Year Ended June 30, 2023
ANNUAL FINANCIAL REPORT
CITY OF CAPE GIRARDEAU, MISSOURI
TABLE OF CONTENTS
FINANCIAL SECTION Page No.
INDEPENDENT AUDITORS’ REPORT 1-3
REQUIRED SUPPLEMENTARY INFORMATION
MANAGEMENT’S DISCUSSION AND ANALYSIS 4-10
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 11
STATEMENT OF ACTIVITIES 12
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
BALANCE SHEET 13
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT FUNDS TO THE STATEMENT OF NET
POSITION 14
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES 15
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES 16
PROPRIETARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 17-18
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION 19
STATEMENT OF CASH FLOWS 20-21
FIDUCIARY FUNDS FINANCIAL STATEMENTS
STATEMENT OF FIDUCIARY NET POSITION 22
STATEMENT OF CHANGES TO FIDUCIARY NET POSITION 23
NOTES TO BASIC FINANCIAL STATEMENTS 24-69
REQUIRED SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – GENERAL FUND 70
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES – BUDGET AND ACTUAL
AIRPORT FUND 71
NOTES TO BUDGETARY COMPARISON SCHEDULES 72-74
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – GENERAL DIVISION 75
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – POLICE DIVISION 76
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS – FIRE DIVISION 77
SCHEDULE OF EMPLOYER CONTRIBUTIONS 78
SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB
LIABILITY AND RELATED RATIOS 79
SUPPLEMENTARY INFORMATION
COMBINING BALANCE SHEET-NONMAJOR GOVERNMENTAL FUNDS 80-81
COMBINING STATEMENT OF REVENUE, EXPENDITURES,
AND CHANGES IN FUND BALANCES – NONMAJOR
GOVERNMENTAL FUNDS 82-83
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE 84-86
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS 87-88
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 89-91
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 92
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 93-94
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 95
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INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Cape Girardeau, Missouri
Opinions
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Cape Girardeau, Missouri, as of and for the year ended June 30, 2023, and the related notes
to the financial statements, which collectively comprise the City of Cape Girardeau, Missouri’s
basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Cape Girardeau, Missouri
as of June 30, 2023, and the respective changes in financial position, and where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Basis for Opinions
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. Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the City of Cape
Girardeau, Missouri and to meet our other ethical responsibilities, in accordance with the relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
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In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City of
Cape Girardeau, Missouri’s ability to continue as a going concern for twelve months beyond the
financial statement date, including any currently known information that may raise substantial
doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City of Cape Girardeau, Missouri’s internal control.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City of Cape Girardeau, Missouri’s ability
to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, and pension liability
schedules on pages 4 through 10 and 70 through be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who
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considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Cape Girardeau, Missouri’s basic financial statements. The
accompanying budgetary comparison fund financial statements, combining nonmajor fund
financial statements and schedule of expenditures of federal awards as required by Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional
analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. This information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
budgetary comparison fund financial statements, combining nonmajor fund financial statements,
and the schedule of expenditures of federal awards are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January
20, 2024 on our consideration of the City of Cape Girardeau, Missouri’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is solely to describe
the scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the City of Cape Girardeau,
Missouri’s internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the
City of Cape Girardeau, Missouri’s internal control over financial reporting and compliance.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
January 20, 2024
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CAPE GIRARDEAU, MISSOURI
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Management’s Discussion and Analysis
The discussion and analysis of the City of Cape
Girardeau’s financial performance provides an
overall review of the City’s financial activities
for the fiscal year ended June 30, 2023. The
intent of this discussion and analysis is to look at
the City’s financial performance as a whole.
Readers should also review the basic financial
statements and related notes to those statements
to enhance their understanding of the City’s
financial performance.
Financial Highlights
The assets and deferred outflows of the City
of Cape Girardeau exceeded its liabilities and
deferred inflows at the close of the most
recent fiscal year by $415,479,020 (net
position).
As of the close of the current fiscal year, the
City’s governmental funds reported combined
ending fund balances of $70,906,322.
Approximately 15.7% of this total amount,
$11,165,740 is available for spending at the
government’s discretion (unassigned fund
balance).
At the end of the current fiscal year, the
unassigned fund balance for the general fund
was $11,165,740 or 33% of total general fund
expenditures and transfers.
At the end of the current fiscal year, general
fund balance reserved for emergencies was
$4,625,793 or 13.7% of total general fund
expenditures and transfers.
Overview of the Financial Statements
This discussion and analysis are intended to
serve as an introduction to the City of Cape
Girardeau’s basic financial statements.
The City of Cape Girardeau’s basic financial
statements are comprised of three components:
1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial
statements. This report also contains other
supplementary information in addition to the
basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are
designed to provide readers with a broad
overview of the City of Cape Girardeau’s
finances, in a manner similar to a private-sector
business.
The statement of net position presents
information on all the City’s assets, deferred
outflows, liabilities and deferred inflows, with
the difference between the total of assets and
deferred outflows and liabilities and deferred
inflows reported as net position. Over time,
increases or decreases in net position may serve
as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The statement of activities presents information
showing how the City’s net position changed
during the most recent fiscal year. All changes
in the net position are reported as soon as the
underlying event giving rise to the change
occurs, regardless of the timing of the related
cash flows. Thus, revenues and expenses are
reported in the statement for some items that will
only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial
statements distinguish functions of the City of
Cape Girardeau that are principally supported by
taxes and intergovernmental revenues
(governmental activities) from other functions
that are intended to recover all or a significant
portion of their costs through user fees and
charges (business-type activities). The
governmental activities of the City of Cape
Girardeau include administrative services,
development services, parks and recreation,
public safety, and public works. The business-
type activities of the City include sewer, water
and solid waste utilities and golf course, indoor
sports complex and sports complexes operations.
The government-wide financial statements can
be found on pages 11 to 12 of this report.
Fund Financial Statements. A fund is a
grouping of related accounts that is used to
maintain control over resources that have been
segregated for specific activities or objectives.
The City of Cape Girardeau, like other state and
CITY OF CAPE GIRARDEAU, MISSOURI
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local governments, uses fund accounting to
ensure and demonstrate compliance with
finance-related legal requirements. All of the
funds of the City can be divided into three
categories: governmental funds, proprietary
funds, and fiduciary funds.
Governmental Funds. Governmental funds are
used to account for essentially the same
functions reported as governmental activities in
the government-wide financial statements.
However, unlike the government-wide financial
statement, governmental fund financial
statements focus on near-term inflows and
outflows of spendable resources, as well as on
balances of spendable resources available at the
end of the fiscal year. Such information may be
useful in evaluating a government’s near-term
financing requirements.
Because the focus of the governmental funds is
narrower than that of the government-wide
financial statements, it is useful to compare the
information presented for governmental funds
with similar information presented for
governmental activities in the government-wide
financial statements. By doing so, readers may
better understand the long-term impact of the
government’s near term financing decisions.
Both the governmental fund balance sheet and
the governmental fund statement of revenues,
expenditures, and changes in fund balances
provide a reconciliation to facilitate this
comparison between governmental funds and
governmental activities.
The City of Cape Girardeau maintained 28
individual governmental funds during the current
year. Information is presented separately in the
governmental fund balance sheet and in the
governmental fund statement of revenues,
expenditures, and changes in fund balances for
the General and General Capital Improvements
Fund which are considered, or have been
designated, to be major funds of the City. Data
from the other governmental funds are combined
into a single, aggregated presentation.
The City of Cape Girardeau adopts annual
appropriated budgets for all its governmental
funds, except the special revenue funds that are
foundations and the capital project funds which
have project length budgets. Budgetary
comparison statements have been provided for
all major governmental funds as part of the
financial statements to demonstrate compliance
with this budget.
Basic governmental fund financial statements
can be found on pages 13 to 16 of this report.
Proprietary Funds. The City of Cape Girardeau
maintains two types of proprietary funds.
Enterprise funds are used to report the same
functions presented as business-type activities in
the government-wide financial statements.
The City used enterprise funds to account for its
sewer, water, and solid waste utilities and its golf
course, indoor sports complex, and sports
complexes operations. Internal service funds are
an accounting device used to accumulate and
allocate costs internally among the City’s various
functions. The City uses internal service funds
to account for operation of its information
technology systems, fleet management, self-
insured employee benefits and workmen’s
compensation programs, and its internal
equipment leasing program.
Proprietary funds provide the same type of
information as the government-wide financial
statements, only in more detail. The proprietary
fund financial statements provide separate
information for the sewer, water, and solid waste
utilities. All of these are considered, or have
been designated, to be major funds of the City.
Data from the other proprietary funds are
combined into a single aggregated presentation.
The internal service funds are combined into a
single, aggregated presentation in the proprietary
fund financial statements.
The basic proprietary fund financial statements
can be found on pages 17 to 21 of this report.
Notes to the Financial Statements. The notes
provide additional information that is essential to
a full understanding of the data provided in the
government-wide and fund financial statements.
The notes to the financial statements can be
found beginning on page 24 of this report.
CITY OF CAPE GIRARDEAU, MISSOURI
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Government-wide Financial Analysis
As noted earlier, net position may serve over
time as a useful indicator of a government’s
financial position. The City of Cape Girardeau’s
assets and deferred outflows exceeded its
liabilities and deferred inflows by $415,749,020,
an increase of $19,438,456 (4.9%). The City’s
net investment in capital assets (land, buildings,
machinery, and equipment less related
outstanding debt used to acquire those assets) of
$324,554,227 makes up 78% of the City’s net
position.
Although the City’s investment in its capital
assets is reported net of related debt, it should be
noted that the resources needed to repay this debt
must be provided from other sources, since the
capital assets themselves cannot be used to
liquidate these liabilities.
Governmental Activities. Governmental
activities increased the City of Cape Girardeau’s
net position by $12,782,140 during the current
year (compared to $19,659,569 in the previous
fiscal year).
CITY OF CAPE GIRARDEAU, MISSOURI
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Activity in the following revenue and expense items should be noted for the current fiscal year:
Revenues from Governmental Fund activities:
• During the current fiscal year, the Total Governmental Funds Revenue increased $8,616,494.
• Taxes Revenue, representing 73% of Total General Fund Revenues experienced the following changes in its
significant revenue sources:
o Sales Tax Revenue increased $853,902 (7.2%) and was 44% of the total General Fund
revenue during the current year.
o Use Tax – this current fiscal year represents the first twelve month period of use tax
collections since the recent passage of the tax. The increase over the prior partial year was
$2,250,631.
o Franchise Tax - $445,107 increase over prior year.
o Total Tax Initiative Revenue increased $1,469,582, representing increases in Transportation
Sales Tax, Capital Improvement Sales Tax, Parks/Stormwater Sales Tax, and Fire Sales Tax.
o Other taxes increased $280,135 above the previous year. These include property, merchant
licenses, liquor licenses, cigarette taxes, and economic activity taxes.
• Operating and Capital grants and contributions increased $778,884 from the previous year. The increase
surrounding grants and contributions is primarily driven by federal funds related to the CARES Act and
American Rescue Plan funds provided to the City and the Airport. This will continue as the City continues to
spend these funds on designated projects through December 2024.
• The convention and tourism taxes decreased $259,362 during the current year. The restaurant tax decreased by
$181,176 and hotel/motel tax increased by $78,186 from the previous year.
• Gaming revenue received by the casino revenue fund decreased $152,247 from the previous year.
• Interest and investment revenue in the General Fund increased $534,324, while investment revenue increased
$2,154,292 for all governmental funds during the current year.
Expenses Governmental Fund activities:
• The largest expense of the Governmental Fund Activities is that of personnel pay and benefits. There was an
increase of $1,674,327 for these expenditures during the current fiscal year. In addition, a one-time expenditure
of $3,121,000 was incurred to upgrade the Missouri Local Government Employees’ Retirement System, to the
L-6 plan. A new pay plan was adopted at the beginning of the current fiscal year and additional compensation
to facilitate employee recruitment and retention was paid.
• Operational governmental fund expenses increased $426,444 (6%) from the previous year.
• The Capital Outlay for the current fiscal year increased $7,906,632 .
• Governmental Fund Activities included Debt Service principal and interest payments, which were $2,451,772
more than the previous year.
Revenues from Proprietary Fund activities:
• During the current fiscal year, the City saw the following changes in its operating revenue:
o Sewer – $315,302 increase over prior year.
o Water Fund - $545,869 increase over prior year.
o Solid Waste - $561,433 increase over prior year.
CITY OF CAPE GIRARDEAU, MISSOURI
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o Non-Major Funds (Golf Course, Indoor Sports Complex and Sports Complexes) - $146,466 increase over
prior year.
• Operating and Capital grants and contributions increased $1,512,216 from the previous year.
• The City implemented rate increases in Residential Water, Residential Tr ash and Commercial Water of 5% at
the beginning of the current year.
Expenses from Proprietary Fund activities:
The total operating expenditures for the proprietary funds increased $2,833,866 during the current fiscal year.
• Proprietary operating expense increase of $1,876,987. There was an 11% increase in the cost of materials,
supplies and contractual services which comprised 65% of the operating expense increase.
o Sewer Fund - $564,259 increase over prior year
o Water Fund - $590,126 increase over prior year
o Solid Waste Fund - $655,660 increase over prior year
o Non-Major Funds - $66,942 increase over prior year
• Personnel expenses, salaries and benefits, increase of $956,879.
o Sewer increased $294,546
o Water decreased $39,922
o Solid Waste increased $251,158
o Non-Major Funds increased $371,253
CITY OF CAPE GIRARDEAU, MISSOURI
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Financial Analysis of the City’s Funds
As noted earlier, the City of Cape Girardeau uses
fund accounting to ensure and demonstrate
compliance with finance-related legal
requirements.
Governmental funds. The focus of the City’s
governmental funds is to provide information on
near-term inflows, outflows, and balances of
spendable resources. Such information is useful
in assessing the City’s financing requirements.
In particular, unassigned fund balance may serve
as a useful measure of the City’s net resources
available for spending at the end of a fiscal year.
As of June 30, 2023, the City’s governmental
funds reported combined ending fund balances
of $70,906,322, an increase of $3,733,369
(5.5%) from the prior year. Unassigned fund
balances, which are available for spending at the
City’s discretion, account for $11,165,740
(15.7%) of the total fund balances.
The remainder of the fund balances are classified
as non-spendable, restricted, committed, or
assigned to indicate that they are not available
for new spending. The following are the amounts
and classification of the remaining fund balances
at June 30, 2023: (1) $2,408,150 is classified as
non-spendable because it is either (a) not in
spendable form or (b) legally or contractually
required to be maintained intact (2) $48,469,227
is classified as restricted because it can be spent
only for specific purposes because of restrictions
by external parties, constitutional provisions or
enabling legislation 3) $2,923,926 is classified
as committed because it can only be used for
specific purposes pursuant to constraints
imposed by formal action of the City Council 4 )
$5,939,279 is classified as assigned because its
expenditure is constrained by the City’s intent to
use it for specific purposes.
The general fund is the chief operating fund of
the City. At the end of fiscal year ending June,
unassigned fund balance of the general fund was
$11,165,740 while total fund balance was
$15,467,982. As a measure of the general fund’s
liquidity, it may be useful to compare both
unassigned fund balance and total fund balance
to total fund expenditures. Unassigned fund
balance represents 33% of total general fund
expenditures including transfers.
Included in the restricted fund balance is $3,929,903
which is General Fund reserved to meet the required
City Charter emergency reserve. This amount
represents 11.6% of total general fund expenditures
including transfers and could be used if an
emergency was declared by the City Council.
The Governmental Funds Statement of Revenue,
Expenditures, and Changes in Fund Balance shows that
the total fund balance of the City of Cape Girardeau’s
general fund increased by $680,592 as a result of the
current year’s operations.
Proprietary funds. The City of Cape Girardeau’s
enterprise funds, Sewer, Water and Solid Waste, are
presented as major funds for purposes of this report
while Golf Course, Indoor Sports Complex and
Sporting Complexes funds are reported as non-major
funds.
General Fund Budgetary Highlights
Excess general fund revenues and unrestricted fund
balances were used to fund all appropriations that did
not have an identified funding source.
Capital Assets and Debt Administration
Capital Assets. The City of Cape Girardeau’s
investment in capital assets for its governmental and
business-type activities as of June 30, 2023 amounts
to $399,832,558 (net of accumulated depreciation).
This investment in capital assets includes all land,
buildings and system improvements, machinery and
equipment, and infrastructure owned by the City.
Long-term debt.
At the end of the fiscal year, the City of Cape
Girardeau had total debt outstanding of $95,913,196.
Bonded debt outstanding totaling $52,317,308 is
secured by revenues of the sewer and water funds and
capital improvement sales taxes. The repayment of
the remaining debt is subject to annual
appropriations.
The City’s total long-term debt decreased by
$8,230,380 (8.5%) during the current fiscal year as a
result of $2,034,591 loan payoff, and $6,195,789 in
amortization and regularly scheduled principal
payments.
More information about the City’s outstanding debt
can be found in note F to the financial statements.
CITY OF CAPE GIRARDEAU, MISSOURI
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Economic Factors and the Next Year’s Budget
Local Retail Economy
Sales tax is a significant revenue source of the
City and is a barometer of the local economy. In
the current year sales tax revenue from the
general sales tax increased 7%. The current
year’s average rate of inflation was a significant
contributor to the increase in sales tax revenue.
Use Tax
In November 2021, the citizens of Cape
Girardeau voted to approve a use tax on the
purchase of goods via the internet. This approval
lowered the City’s dependence on the sales tax.
Recent years with the growth of internet
shopping and Missouri’s lack of a standardized
use tax to capture the sales left the City of Cape
Girardeau at a disadvantage. This allowed the
City to capture the revenue leakage that was
growing annually due to the continuous increase
in internet sales. The City began receiving this
revenue in March of 2022. The revenue stream
has allowed the City to uphold the promise of
strengthening its employee pay and benefits to
get them competitive in the market we compete
in. This has led to the implementation of a
revised pay plan that increased the pay and
benefits by 11.7%. The increase in pay and
benefits reported in the fiscal year 2023 were
funded by the Use Tax Revenue.
Regional Retail Center
Cape Girardeau continues to be a regional retail
center for much of Southeast Missouri and
Southern Illinois. Since 2017 the City’s share of
the local retail market has improved modestly.
Local Economic Development
In previous years the City has entered into long-
term development agreements to reimburse
companies for public improvements associated
with retail development projects and a hotel /
convention center development project from
additional sales tax generated from those
projects. The agreements have resulted in the
addition of major new retailers, the relocation
and expansion of another major retailer, the
addition of a 168 room hotel and related 20,000
square foot convention center. Details of these
agreements can be found in Note U in the Notes to
the Financial Statements section.
Revenue Limitations
The state Hancock Amendment requires the City
obtain simple majority voter approval to increase any
permit or license fee that is not based on actual costs
to the user and strictly limits the City’s ability to
increase its real estate and personal property tax
levies to support its general services such as police
and fire protection. The City Charter requires voter
approval to increase sewer, water, and solid waste
fees by more than 5% in any year. All other user fees
can be adjusted to cover actual costs.
Budget for fiscal year ending June 30, 2024 and
financial condition
The City’s current financial position continued to
improve during the fiscal year ended June 30, 2023.
The City maintains a more than adequate fund
balance to cover existing claims and potential
emergencies. The increased revenue from the recent
Use Tax is expected to continue to support our
continued efforts to improve pay and benefits for
City employees, while becoming more competitive in
the market for those employees.
The City’s general fund ended the current year with
an increase in unassigned fund balance.
The Budget for the Fiscal Year Ending June 30, 2024
was prepared expecting some challenges resulting
from an expectation that the economy would slow
down; thus this budget reflects the increased cost of
operating resulting from inflationary pressures, while
the revenues are conservatively projected. The budget
is balanced by utilizing a minimal amount of reserves
that have accumulated through June 2023.
Requests for Information
This financial report is designed to provide a general
overview of the City of Cape Girardeau’s finances
for all those with an interest in the City’s finances.
Questions concerning any of the information
provided in this report or requests for additional
financial information should be addressed to the
Finance Director, City of Cape Girardeau, PO Box
617, Cape Girardeau, MO 63702-0617.
BASIC FINANCIAL STATEMENTS
Governmental Business-Type
Activities Activities Total
Current Assets:
Pooled Cash and Investments 71,375,167$ 28,700,361$ 100,075,528$
Investments 397,777 - 397,777
Taxes Receivable 4,462,056 - 4,462,056
Utility Charges Receivable - 2,526,250 2,526,250
Special Assessments Receivable 265,574 998 266,572
Other Receivables 739,949 15,207 755,156
Motor Fuel Receivable 171,980 - 171,980
Grants Receivable 3,282,418 27,312 3,309,730
Lease Receivable 118,016 46,645 164,661
Inventory 326,068 852,852 1,178,920
Prepaid Items 456,773 21,086 477,859
Internal Balances 164,039 (164,039) -
Total Current Assets 81,759,817$ 32,026,672$ 113,786,489$
Noncurrent Assets:
Restricted Cash and Cash Equivalents -$ 5,245,143$ 5,245,143$
Lease Receivable 329,091 873,297 1,202,388
Net Pension Assets 8,747,698 2,047,665 10,795,363
Note Receivable 430,094 - 430,094
Land 7,151,514 1,985,018 9,136,532
Buildings, Net 45,008,895 14,064,818 59,073,713
Improvements, Net 17,844,207 146,421,275 164,265,482
Furniture, Machinery and Equipment, Net 13,207,121 6,768,648 19,975,769
Infrastructure and Improvements, Net 130,966,482 - 130,966,482
Construction in Progress 14,051,804 2,362,776 16,414,580
Total Capital Assets, Net 237,736,906$ 179,768,640$ 417,505,546$
TOTAL ASSETS 319,496,723$ 211,795,312$ 531,292,035$
Deferred Outflow from Pension Plan 5,430,717$ 390,337$ 5,821,054$
Deferred Outflow from Retiree Health Plan 753,415 146,878 900,293
Total Deferred Outflows of Resources 6,184,132 537,215 6,721,347
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF NET POSITION
June 30, 2023
ASSETS
DEFERRED OUTFLOWS
OF RESOURCES
See Accompanying Notes to the Basic Financial Statements.
11
Governmental Business-Type
Activities Activities Total
Current Liabilities:
Accounts Payable 3,501,777$ 637,251$ 4,139,028$
Salaries and Benefits Payable 748,629 209,102 957,731
Interest Payable 90,844 320,758 411,602
Other Liabilities 505,142 1,185,499 1,690,641
Estimated Claims 662,000 - 662,000
Unearned Revenues 395,438 2,333,290 2,728,728
Revenue Bonds Payable, Current Portion - 4,116,000 4,116,000
Special Obligation Bonds Payable Current Portion 2,919,250 284,200 3,203,450
Total Current Liabilities 8,823,080$ 9,086,100$ 17,909,180$
Long-Term Liabilities:
Estimated Landfill Post Closure Costs -$ 3,300$ 3,300$
Revenue Bonds Payable - 48,201,308 48,201,308
Special Obligation Bonds Payable 38,633,774 1,758,664 40,392,438
Compensated Absences Payable 1,387,923 159,949 1,547,872
Net OPEB Obligation 8,216,853 774,083 8,990,936
Total Long-Term Liabilities 48,238,550$ 50,897,304$ 99,135,854$
TOTAL LIABILITIES 57,061,630$ 59,983,404$ 117,045,034$
Deferred Inflow From Leases 420,127$ 890,054$ 1,310,181$
Deferred Inflow From Pension Plan 1,775,764 361,276 2,137,040
Deferred Inflow from Retiree Health Plan 1,603,760 168,347 1,772,107
Total Deferred Inflows of Resources 3,799,651$ 1,419,677$ 5,219,328$
Net Investment in Capital Assets 199,103,132$ 125,451,095$ 324,554,227$
Restricted 48,469,227 3,015,234 51,484,461
Unrestricted 17,247,215 22,463,117 39,710,332
TOTAL NET POSITION 264,819,574$ 150,929,446$ 415,749,020$
DEFERRED INFLOWS
OF RESOURCES
LIABILITIES
NET POSITION
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF NET POSITION
June 30, 2023
See Accompanying Notes to the Basic Financial Statements.
11
Operating Capital
Charges Grants and Grants and Governmental Business-Type
Expenses for Services Contributions Contributions Activities Activities Total
Governmental Activities:
Interest and Other Charges 1,481,443$ -$ -$ -$ (1,481,443)$ -$ (1,481,443)$
Development Services 7,724,334 1,680,364 415,010 6,134,837 505,877 - 505,877
Public Safety 19,275,298 405,206 616,219 188,772 (18,065,101) - (18,065,101)
Public Works 12,231,141 16,117 - 121,358 (12,093,666) - (12,093,666)
Parks and Recreation 6,480,973 1,620,489 89,995 65,550 (4,704,939) - (4,704,939)
Administrative 6,961,457 1,310,787 15,000 - (5,635,670) - (5,635,670)
Total Governmental Activities 54,154,646$ 5,032,963$ 1,136,224$ 6,510,517$ (41,474,942)$ -$ (41,474,942)$
Business-Type Activities:
Golf Course Fund 821,928$ 849,554$ -$ 40,613$ -$ 68,239$ 68,239$
Indoor Sports Complex 1,267,688 901,983 - - - (365,705) (365,705)
Sewer Fund 10,407,452 7,921,256 569,082 2,759,455 - 842,341 842,341
Solid Waste Fund 5,765,556 6,072,501 25,312 - - 332,257 332,257
Sporting Complexes Fund 1,352,462 405,512 - 106,548 - (840,402) (840,402)
Water Fund 8,795,292 8,407,956 30,309 593,146 - 236,119 236,119
Total Business-Type Activities 28,410,378$ 24,558,762$ 624,703$ 3,499,762$ -$ 272,849$ 272,849$
Total Primary Government 82,565,024$ 29,591,725$ 1,760,927$ 10,010,279$ (41,474,942)$ 272,849$ (41,202,093)$
2,853,858$ -$ 2,853,858$
35,794,289 - 35,794,289
5,369,730 - 5,369,730
1,950,706 - 1,950,706
3,108,058 - 3,108,058
3,072,035 - 3,072,035
2,676,126 - 2,676,126
290,449 - 290,449
1,731,258 - 1,731,258
84,688 - 84,688
3,454,808 1,323,943 4,778,751
Gain (Loss) on Disposal of Capital Assets (1,077,759) 32,864 (1,044,895)
Compensation for Damages 8,236 - 8,236
49,946 6,476
(5,109,346) 5,109,346 -
Total General Revenues and Transfers 54,257,082 6,472,629$ 60,729,711$
Change in Net Position 12,782,140$ 6,745,478$ 19,527,618$
251,775,619 144,534,952 396,310,571
261,815 (350,984) (89,169)
264,819,574$ 150,929,446$ 415,749,020$
Convention and Tourism Taxes
CITY OF CAPE GIRARDEAU, MISSOURI
Property Taxes
Sales Tax
Franchise Tax
Motor Fuel Taxes
STATEMENT OF ACTIVITIES
Year Ended June 30, 2023
Net (Expense) Revenue and
Change in Net Position
Functions/Programs
General Revenues:
Program Revenues
Taxes:
Use Tax
Net Position - July 1, 2022
Net Position - June 30, 2023
Other Taxes
Investment Income
Internal Balances
Merchant Licenses
Liquor Licenses
Gaming Taxes
Prior Period Adjustment
Settlements
See Accompanying Notes to the Basic Financial Statements.
12
FUND FINANCIAL STATEMENTS
Nonmajor Total
General Airport Governmental Governmental
Fund Fund Funds Funds
CURRENT ASSETS:
Pooled Cash and Investments 10,145,193$ 6,970,556$ 49,580,846$ 66,696,595$
Receivables:
Real Estate Taxes, Net 280,074 - 52,449 332,523
Property Taxes, Net 37,622 - 7,052 44,674
Sales Tax 1,112,779 - 1,918,892 3,031,671
Franchise Tax 443,827 - - 443,827
Use Tax 332,585 - - 332,585
Hotel and Motel Tax - - 102,394 102,394
Restaurant Tax - - 174,382 174,382
Special Assessments 247,387 - 18,187 265,574
Other 26,066 245,253 343,641 614,960
Motor Fuel Tax - - 120,235 120,235
Vehicle License Fees - - 38,103 38,103
Motor Vehicle Sales Tax - - 13,642 13,642
Grants 184,250 3,010,125 88,043 3,282,418
Other Funds 4,500,432 - - 4,500,432
Inventory 249 83,075 38,099 121,423
Prepaid Items 114,940 19,439 137,647 272,026
TOTAL CURRENT ASSETS 17,425,404 10,328,448 52,633,612 80,387,464
NONCURRENT ASSETS:
Advances to Other Funds -$ -$ 2,031,759$ 2,031,759$
TOTAL NONCURRENT ASSETS -$ -$ 2,031,759$ 2,031,759$
TOTAL ASSETS 17,425,404$ 10,328,448$ 54,665,371$ 82,419,223$
LIABILITIES:
Accounts Payable 312,999$ 1,158,917$ 1,985,518$ 3,457,434$
Salaries and Benefits Payable 581,798 17,929 77,595 677,322
Other Liabilities 443,287 60,966 889 505,142
Payable to Other Funds - 4,500,432 - 4,500,432
Unearned Revenues 40,257 212,155 142,045 394,457
Deferred Revenues 579,081 - 76,973 656,054
CURRENT LIABILITIES 1,957,422$ 5,950,399$ 2,283,020$ 10,190,841$
NONCURRENT LIABILITIES:
Advances from Other Funds -$ 1,322,060$ -$ 1,322,060$
TOTAL NONCURRENT LIABILITIES -$ 1,322,060$ -$ 1,322,060$
TOTAL LIABILITIES 1,957,422$ 7,272,459$ 2,283,020$ 11,512,901$
FUND BALANCE:
Nonspendable 219,305$ 19,439$ 2,169,406$ 2,408,150$
Restricted 3,929,903 44,539,324 48,469,227
Committed - - 2,923,926 2,923,926
Assigned 153,034 3,036,550 2,749,695 5,939,279
Unassigned 11,165,740 - - 11,165,740
TOTAL FUND BALANCE 15,467,982 3,055,989 52,382,351 70,906,322
TOTAL LIABILITIES AND FUND
BALANCE 17,425,404$ 10,328,448$ 54,665,371$ 82,419,223$
ASSETS
LIABILITIES AND FUND BALANCE
CITY OF CAPE GIRARDEAU, MISSOURI
GOVERNMENTAL FUNDS
June 30, 2023
BALANCE SHEET -
See Accompanying Notes to the Basic Financial Statements.
13
Total fund balance - total governmental funds
(Balance Sheet - Governmental Funds)70,906,322$
Amounts reported for governmental activities in the statement
of net position are different because:
Capital assets used in governmental activities are not current
financial resources and therefore are not reported in
the governmental funds balance sheet, net of accumulated
depreciation of $166,867,029.226,490,258
Internal service funds are used by management to charge the
costs of management information systems, fleet management,
employee fringe benefits, workmen's compensation, and
equipment replacement to the individual funds. Their assets
and liabilities are included in governmental activities in the
statement of net position.6,169,269
Assets, liabilities, and deferred inflows and outflows related
to the City's employee retirement plan are reported on a
net basis in government activities of the statement of net
position but are not included in the governmental funds
because they do not require the use of or provide current
financial resources.11,941,321
Accrued expenses which are included in governmental activities
in the statement of net position but not in governmental funds
because they are not payable from current financial resources.(140,749)
Non-current net OPEB obligation included in governmental
activities of the statement of net position for employee
post-retirement healthcare benefits is not included in
governmental funds because it does not require the use of
current financial resources.(8,780,015)
Note receivables are not financial resources and therefore
are not reported in the governmental funds balance sheet.430,094
Lease receivables are not financial resources and therefore
are not reported in the governmental funds balance sheet.447,107
Deferred inflows relating to leases are reported in the government
activities of the statement of net position but are not included in
the governmental funds because they do not provide current
financial resources.(420,127)
Non-current compensated absences are not due and payable
in the current period and, therefore, they are not reported
in the governmental funds balance sheet.(1,325,955)
Long-term liabilities are not due and payable in the current
period and, therefore, they are not reported in the
governmental funds balance sheet.
Special Obligation Bonds Payable (41,553,024)
Assets included in governmental activities of the statement
of net position that are not available to pay for current-period
expenditures are offset by deferred revenues in governmental
funds.655,073
Net position of governmental activities (Statement of Net Position)264,819,574$
CITY OF CAPE GIRARDEAU, MISSOURI
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
June 30, 2023
See Accompanying Notes to the Basic Financial Statements.
14
Nonmajor Total
General Airport Governmental Governmental
Fund Fund Funds Funds
REVENUES:
Taxes 24,225,887$ -$ 28,934,740$ 53,160,627$
Licenses and Permits 2,080,455 - - 2,080,455
Intergovernmental 940,696 6,543,847 2,090,579 9,575,122
Charges for Services 312,539 489,857 1,590,638 2,393,034
Internal Charges 1,021,682 - - 1,021,682
Fines and Forfeits 244,003 - - 244,003
Miscellaneous 406,986 326,141 139,861 872,988
Investment Revenue 617,556 241,868 2,361,599 3,221,023
Special Assessments 60,599 - 21,137 81,736
TOTAL REVENUES 29,910,403$ 7,601,713$ 35,138,554$ 72,650,670$
EXPENDITURES:
Current:
Administrative Services 6,602,171$ -$ 110,789$ 6,712,960$
Development Services 2,813,574 2,191,124 2,096,561 7,101,259
Parks and Recreation 1,609,120 - 3,086,035 4,695,155
Public Safety 17,147,970 - 596,688 17,744,658
Public Works 2,722,581 - 10,349 2,732,930
Debt Service:
Interest - - 1,469,633 1,469,633
Principal - - 4,879,456 4,879,456
Capital Outlay:
Administrative Services 76,151 - - 76,151
Development Services 9,042 6,331,954 - 6,340,996
Capital Improvements - - 291,942 291,942
Parks and Recreation 49,683 - 3,622,385 3,672,068
Public Works - - 9,524,160 9,524,160
Public Safety 497,760 - 414,949 912,709
TOTAL EXPENDITURES 31,528,052$ 8,523,078$ 26,102,947$ 66,154,077$
REVENUES OVER (UNDER)
EXPENDITURES (1,617,649)$ (921,365)$ 9,035,607$ 6,496,593$
OTHER FINANCING SOURCES (USES):
Transfers In 6,186,138$ 5,103,592$ 11,202,765$ 22,492,495$
Transfers Out (4,003,297) - (23,637,236) (27,640,533)
Compensation for Damages 7,210 - 1,026 8,236
Settlements 49,946 - - 49,946
Gain (Loss) from Sale of Asset 57,744 - 2,252,218 2,309,962
Capital Contributions 500 - - 500
TOTAL OTHER FINANCING SOURCES
(USES)2,298,241$ 5,103,592$ (10,181,227)$ (2,779,394)$
NET CHANGE IN FUND BALANCES 680,592$ 4,182,227$ (1,145,620)$ 3,717,199$
FUND BALANCE, July 1, 2022 14,745,981 (1,100,999) 53,527,971 67,172,953
PRIOR PERIOD ADJUSTMENT 41,409 (25,239) - 16,170
FUND BALANCE, June 30, 2023 15,467,982$ 3,055,989$ 52,382,351$ 70,906,322$
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
Year Ended June 30, 2023
See Accompanying Notes to the Basic Financial Statements.
15
Net Change in fund balances - total governmental funds (Statement of Revenues,
Expenditures, and Changes in Fund Balances - Governmental Funds)3,717,199$
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlay as expenditures. However,
in the government-wide statement of activities and changes in net position,
the cost of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount of capital assets expended
in the current period.18,456,657
Depreciation expense on capital assets is reported in the government-
wide statement of activities and changes in net position, but it
does not require the use of current financial resources. Therefore,
depreciation expense is not reported as an expenditure in governmental funds.(10,792,327)
In the statement of activates, only the loss from the sale of capital assets is
reported, whereas in the governmental funds, the proceeds from the sale
increase financial resources. Thus, the change in net position differs from
the change in fund balance by the net book value of the capital assets sold.(3,391,568)
Changes in the net OPEB obligation related to the cost of providing future
post-retirement healthcare costs to the City's employees that do not
require current financial resources are reported on the statement of
activities but not in the governmental funds.595,520
Changes in compensated absences does not require the use of current financial
resources and is therefore not reported as expenditures in governmental funds. (27,489)
Revenues in the statement of activities that do no provide current financial
resources are not reported as revenues in governmental funds.(95,673)
Changes in the assets, liabilities, and deferred inflows and outflows related to the
city's employee retirement plan that occurred during the current year that do
not require current financial resources are reported on the statement of
activities but not in the governmental funds. (228,365)
The receipt of lease revenue is recorded in the governmental funds, while
the collection of lease payments reduces the lease receivable in the
governmental statement of net position.4,774
The issuance of long-term debt (e.g. bonds) provides current financial resources
to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of issuance cost, premium, discounts, and similar items when
debt is first issued, whereas the amounts are deferred and amortized in the
statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.4,867,646
Internal service funds are used by management to charge the costs of management
information systems, fleet management, employee fringe benefits, workmen's
compensation, and equipment replacement to the individual funds.
Their assets and liabilities are included in governmental activities in the statement
of net position.(324,234)
Change in net position of governmental activities (Statement of Activities)12,782,140$
CITY OF CAPE GIRARDEAU, MISSOURI
RECONCILIATION OF THE STATEMENT
OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
Year Ended June 30, 2023
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
See Accompanying Notes to the Basic Financial Statements.
16
Non-Major Total
Sewer Water Solid Waste Enterprise Enterprise Internal
Fund Fund Fund Funds Funds Service Funds
CURRENT ASSETS:
Pooled Cash and Investments 14,741,769$ 8,160,514$ 3,923,730$ 1,874,348$ 28,700,361$ 4,678,572$
Investments - - - - - 397,777
Receivables:
Utility Charges, Net 949,824 1,126,318 450,108 - 2,526,250 -
Special Assessments 998 - - - 998 -
Leases - 344,859 575,083 - 919,942 -
Other 2,728 10,600 1,879 - 15,207 124,989
Grants 2,000 - 25,312 - 27,312 -
Inventory - 809,120 - 43,732 852,852 204,645
Prepaid Items 14,332 4,684 1,294 776 21,086 184,747
Total Current Assets 15,711,651$ 10,456,095$ 4,977,406$ 1,918,856$ 33,064,008$ 5,590,730$
NONCURRENT ASSETS:
Restricted Cash and Cash Equivalents 4,333,309$ 911,834$ -$ -$ 5,245,143$ -$
Net Pension Asset 868,726 185,668 567,985 425,286 2,047,665 359,851
Land 537,678 - 112,240 1,335,100 1,985,018 37,500
Buildings 8,093,164 356,244 4,928,942 13,449,347 26,827,697 53,906
Equipment 8,333,053 3,026,299 4,557,825 1,637,772 17,554,949 7,214,525
Other Improvements 165,783,655 72,944,836 344,023 5,409,647 244,482,161 155,653
Construction in Progress 2,223,992 126,830 - 11,954 2,362,776 -
Accumulated Depreciation (75,289,639) (34,210,144) (5,111,782) (6,998,501) (121,610,066) (5,721,819)
Total Current Assets 114,883,938 43,341,567 5,399,233 15,270,605 178,895,343 2,099,616
TOTAL ASSETS 130,595,589$ 53,797,662$ 10,376,639$ 17,189,461$ 211,959,351$ 7,690,346$
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Pension Plan 173,582$ 20,842$ 131,035$ 64,878$ 390,337$ 106,322$
Deferred Outflow from Retiree Health Plan 50,441 5,497 55,619 35,321 146,878 45,876
Total Deferred Outflows of Resources 224,023$ 26,339$ 186,654$ 100,199$ 537,215$ 152,198$
See Accompanying Notes to the Basic Financial Statements.
17
ASSETS
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2023
Business-Type Activities
Non-Major Total
Sewer Water Solid Waste Enterprise Enterprise Internal
CURRENT LIABILITIES:Fund Fund Fund Funds Funds Service Funds
Accounts Payable 140,523$ 195,716$ 248,484$ 52,528$ 637,251$ 44,343$
Salaries and Benefits Payable 29,671 108,547 27,960 42,924 209,102 21,402
Interest Payable 317,417 - 3,341 - 320,758 -
Other Liabilities 512,627 430,503 242,369 - 1,185,499 -
Estimated Claims Payable - - - - - 662,000
Unearned Revenues 2,208,476 - - 124,814 2,333,290 -
Revenue Bonds Payable, Current Portion 3,456,000 660,000 - - 4,116,000 -
Special Obligation Bonds Payable, Current Portion - - 284,200 - 284,200 -
Total Current Liabilities 6,664,714$ 1,394,766$ 806,354$ 220,266$ 9,086,100$ 727,745$
NONCURRENT LIAIBILITIES:
Net OPEB Obligation 256,536$ 41,047$ 273,248$ 203,252$ 774,083$ 264,380$
Compensated Absences Payable 61,478 - 48,758 49,713 159,949 61,968
Advances from Other Funds - - 709,699 - 709,699 -
Revenue Bonds Payable 41,639,000 6,562,308 - - 48,201,308 -
Special Obligation Bonds Payable - - 1,758,664 - 1,758,664 -
Estimated Landfill Post Closure Cost - - 3,300 - 3,300 -
Total Noncurrent Liabilities 41,957,014$ 6,603,355$ 2,793,669$ 252,965$ 51,607,003$ 326,348$
TOTAL LIABILITIES 48,621,728$ 7,998,121$ 3,600,023$ 473,231$ 60,693,103$ 1,054,093$
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow from Pension Plan 109,008$ 66,364$ 21,674$ 164,230$ 361,276$ 4,843$
Deferred Inflow from Leases - 330,954 559,100 - 890,054 -
Deferred Inflow from Retiree Health Plan 56,870 13,302 69,941 28,234 168,347 68,679
Total Deferred Inflows of Resources 165,878$ 410,620$ 650,715$ 192,464$ 1,419,677$ 73,522$
Net Investment in Capital Assets 64,586,903$ 41,584,065$ 4,434,808$ 14,845,319$ 125,451,095$ 1,739,765$
Restricted:
Depreciation and Replacement - 150,000 - - 150,000 -
Emergencies 740,132 932,859 787,619 404,624 2,865,234 -
Unrestricted 16,704,971 2,748,336 1,090,128 1,374,022 21,917,457 4,975,164
TOTAL NET POSITION 82,032,006$ 45,415,260$ 6,312,555$ 16,623,965$ 150,383,786 6,714,929$
Difference between business-type adjustments to assets and liabilities 545,660
Net position of business-type activities 150,929,446$
18
CITY OF CAPE GIRARDEAU, MISSOURI
See Accompanying Notes to the Basic Financial Statements.
LIABILITIES
NET POSITION
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2023
Business-Type Activities
Non-Major Total
Sewer Water Solid Waste Enterprise Enterprise Internal
Fund Fund Fund Funds Funds Service Funds
OPERATING REVENUES:
Residential Charges 5,014,600$ 5,108,108$ 3,385,241$ -$ 13,507,949$ -$
Commercial Charges 2,657,138 3,137,877 50,384 - 5,845,399 -
Transfer Station Charges - - 2,375,099 - 2,375,099 -
Other Fees and Charges 105,205 124,216 106,652 - 336,073 7,430
Concession Revenues - - - 340,090 340,090 -
Internal Charges 33 - - - 33 8,007,724
Usage Fees - - - 1,799,684 1,799,684 21,674
Miscellaneous 2,259 31,279 155,125 17,275 205,938 16,607
TOTAL OPERATING REVENUES 7,779,235$ 8,401,480$ 6,072,501$ 2,157,049$ 24,410,265$ 8,053,435$
OPERATING EXPENDITURES:
Personnel Services 1,651,416$ 180,656$ 1,370,100$ 1,575,588$ 4,777,760$ 1,032,283$
Materials and Supplies 887,568 1,897,336 307,899 449,146 3,541,949 639,256
Contractual Services 1,586,613 3,631,157 2,908,644 320,656 8,447,070 6,777,222
General Operating Expenses 535,110 557,385 70,337 3,160 1,165,992 33,771
Special Programs 27,872 - 102,793 199,791 330,456 1,825
Internal Services Expenses 366,212 237,721 496,920 111,802 1,212,655 29,382
Depreciation 4,336,514 2,113,780 399,111 749,637 7,599,042 335,617
TOTAL OPERATING EXPENDITURES 9,391,305$ 8,618,035$ 5,655,804$ 3,409,780$ 27,074,924$ 8,849,356$
TOTAL OPERATING INCOME (LOSS)(1,612,070)$ (216,555)$ 416,697$ (1,252,731)$ (2,664,659)$ (795,921)$
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 569,082$ 30,309$ 25,312$ -$ 624,703$ -$
Investment Revenue 680,605 406,020 165,375 71,943 1,323,943 247,420
Gain from Sale of Assets 25,138 3,100 - 4,626 32,864 51,826
Compensation for Damages - 6,476 - - 6,476 -
Interest and Other Charges (955,728) (177,257) (70,226) - (1,203,211) -
Transfers In 4,272,268 8,758 - 828,320 5,109,346 38,692
Contributed Capital - Government 2,664,494 - - 147,161 2,811,655 -
Contributed Capital - Connect Fee 150,010 - - - 150,010 -
Contributed Capital - Developers 94,961 593,146 - - 688,107 -
TOTAL NONOPERATING REVENUES (EXPENSES)7,500,830$ 870,552$ 120,461$ 1,052,050$ 9,543,893$ 337,938$
NET CHANGE IN NET POSITION 5,888,760$ 653,997$ 537,158$ (200,681)$ 6,879,234$ (457,983)$
NET POSITION, July 1, 2022 76,327,307 44,862,309 5,841,274 16,824,646 143,855,536 7,172,912
PRIOR PERIOD ADJUSTMENT (184,061) (101,046) (65,877) - (350,984) -
NET POSITION, June 30, 2023 82,032,006$ 45,415,260$ 6,312,555$ 16,623,965$ 150,383,786$ 6,714,929$
Adjustments to reflect the consolidation of internal service fund activities related to the enterprise funds (133,749)
Change in Net Position of Business-Type Activities 150,250,037$
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION - PROPRIETARY FUNDS
Year Ended June 30, 2023
Business-Type Activities
See Accompanying Notes to the Basic Financial Statements.
19
Non-Major Total
Sewer Water Solid Waste Enterprise Enterprise Internal
Fund Fund Fund Funds Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from Customers 7,623,313$ 8,240,216$ 6,131,122$ 2,181,278$ 24,175,929$ 45,711$
Receipts from Interfund Services 33 - - - 33 7,987,543
Payments to Suppliers (2,531,257) (5,827,216) (3,519,240) (1,028,809) (12,906,522) (7,441,321)
Payments for Salaries and Benefits (1,758,171) (86,025) (1,459,824) (1,665,055) (4,969,075) (1,149,009)
Payments for Interfund Services Used (366,212) (237,721) (496,920) (111,802) (1,212,655) (29,382)
Payments Made in Lieu of Franchise Taxes (418,633) (461,128) - - (879,761) -
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2,549,073$ 1,628,126$ 655,138$ (624,388)$ 4,207,949$ (586,458)$
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers from Other Funds -$ 8,758$ -$ 828,320$ 837,078$ 38,692$
Interest Paid to Other Funds - - (11,996) - (11,996) -
Subsidy From Grant 9,600 - - - 9,600 -
Insurance Claims - 6,476 - - 6,476 (439,500)
Repayment of Long-Term Advance from Other Funds - - (250,000) - (250,000) -
NET CASH PROVIDED (USED) BY NONCAPITAL
FINANCING ACTIVITIES 9,600$ 15,234 (261,996) 828,320 591,158 (400,808)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase and Construction of Capital Assets (1,471,729)$ (323,712)$ (90,200)$ (100,739)$ (1,986,380)$ (407,612)$
Principal Paid on Capital Debt (3,376,000) (705,112) (327,136) - (4,408,248) -
Interest Paid on Capital Debt (924,045) (177,257) (58,846) - (1,160,148)
Proceeds from Sales of Capital Assets 30,500 3,100 - 10,700 44,300 247,420
Transfers In for Payment of Capital Related Debt 4,272,268 - - - 4,272,268 -
NET CASH PROVIDED (USED) BY CAPITAL
AND RELATED FINANCING ACTIVITIES (1,469,006) (1,202,981) (476,182) (90,039) (3,238,208) (160,192)
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended June 30, 2023
Business-Type Activities
See Accompanying Notes to the Basic Financial Statements.
20
Non-Major Total
Sewer Water Solid Waste Enterprise Enterprise Internal
Fund Fund Fund Funds Funds Service Funds
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest Received 63,855$ 49,375$ 165,375$ 71,943$ 350,548$ 247,462$
Net Change in Pooled Investments (1,089,667) (440,379) (82,335) (185,836) (1,798,217) 899,996
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (1,025,812)$ (391,004)$ 83,040$ (113,893)$ (1,447,669)$ 1,147,458$
NET CHANGE IN CASH 63,855 49,375 - - 113,230 -
CASH, July 1, 2022 4,269,454$ 862,459$ -$ -$ 5,131,913$ -$
CASH, June 30, 2023 4,333,309$ 911,834$ -$ -$ 5,245,143$ -$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (Loss)(1,612,070)$ (216,555)$ 416,697$ (1,252,731)$ (2,664,659)$ (795,921)$
Adjustments to Reconcile Operating Income to Net Cash Provided (Used)
by Operating Activities:
Depreciation Expense 4,336,514 2,113,780 399,111 749,637 7,599,042 335,617
Bad Debt Expense 83,083 88,799 55,705 - 227,587 -
Changes in Assets and Liabilities:
Accounts Payable - Supplier (9,160) (111,804) (218,098) (28,618) (367,680) (62,116)
Accounts Payable - Other 2,741 (67,705) 29,465 (24,188) (59,687) -
Salaries and Benefits Payable (27,903) 101,812 (23,028) (52,430) (1,549) (25,254)
Customer Receivables (155,889) (147,359) 74,604 - (228,644) -
Interfund Receivables - - - - - (20,181)
Lease Receivables - (13,905) (15,983) - (29,888) -
Prepaid Expenses 10,609 2,591 3,361 147 16,708 40,266
OPEB Liability (12,375) - (11,819) 2,780 (21,414) (39,901)
Pension Asset/Liability (66,477) (7,181) (54,877) (39,817) (168,352) (51,571)
Inventory - (114,347) - (3,397) (117,744) 32,603
Unearned Revenue - - - 24,229 24,229 -
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2,549,073$ 1,628,126$ 655,138$ (624,388)$ 4,207,949$ (586,458)$
See Accompanying Notes to the Basic Financial Statements.
21
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended June 30, 2023
Business-Type Activities
CITY OF CAPE GIRARDEAU, MISSOURI
ASSETS:
Pooled Cash and Investments 2,561,978$
Restricted Cash and Cash Equivalents 362,149
Receivables:
Real Estate Taxes, Net 323,468
Grants 29,386
Other 18,578
Prepaid Items 28,688
TOTAL ASSETS 3,324,247$
LIABILITIES:
Accounts Payable 38,089$
Salaries and Benefits Payable 16,011
Deferred Revenues 314,887
Funds Held for Agency Funds 2,955,260
TOTAL LIABILITIES 3,324,247$
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF FIDUCIARY NET POSITION
June 30, 2023
LIABILITIES
ASSETS
See Accompanying Notes to the Basic Financial Statements.
22
ADDITIONS
Taxes 2,020,382$
Intergovernmental 334,030
Other Fees and Charges 83,647
Miscellaneous 39,859
Investment Revenue 130,336
TOTAL REVENUES 2,608,254$
DEDUCTIONS
Personnel Services 942,950$
Contractual Services 201,593
Materials and Supplies 213,472
General Operating Expenses 218,549
Debt Service:
Interest 56,530
Principal 620,000
TOTAL EXPENDITURES 2,253,094$
CHANGE IN NET POSITION 355,160$
ASSETS/LIABILITIES, July 1, 2022 2,969,087
ASSETS/LIABILITIES, June 30, 2023 3,324,247$
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF CHANGES IN
FIDUCIARY NET POSITION
Year Ended June 30, 2023
See Accompanying Notes to the Basic Financial Statements.
23
24
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Cape Girardeau, Missouri (the City) operates under a charter, which went into effect
April 12, 1982. The City operates under a Council-Manager form of government and provides the
following services as authorized by its charter: public safety (police and fire), highways and
streets, water, sanitation, health and social services, culture-recreation, public improvement,
planning and zoning, and general administrative services.
The financial statements of the City have been prepared in conformity with generally accepted
accounting principles (GAAP), as applied to government units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant accounting policies of the City
are described below.
1. Reporting Entity
In evaluating how to define the City, for financial reporting purposes, management has considered
all potential component units. Generally, component units are legally separate organizations for
which the elected officials of the City are financially accountable. The Cape Girardeau (Missouri)
Public Facilities Authority (CGPFA) is a blended component unit of the City. The financial
statements of the CGPFA are included in the accompanying financial statements of the City. The
Cape Girardeau Parks Development Foundation (CGPDF) is also a component unit of the City.
The financial statement of this foundation is included as a special revenue fund in the
accompanying financial statements.
The CGPFA is a not-for-profit corporation organized and existing under Chapter 355 of the
Revised Statutes of Missouri. The CGPFA board of directors consists of City officials and City
Council members. Due to the significant City influence and financial accountability, the activities
of the CGPFA are blended with the financial presentation of the City. The CGPFA executed a
bond indenture for the purpose of issuing and securing the Series 2009 Bonds. These bonds were
used for the construction of various storm water control improvements, Cape Splash Family
Aquatic Center, Shawnee Park Community Center, and various other park related improvements.
The CGPFA entered into a Lease Purchase Agreement with the City from which the lease
payments were used solely to retire the debt. All debt was retired and remaining assets, $162.10 in
cash, were returned to the City prior to the current year. No activity occurred during the current
year.
The CGPDF is a not-for-profit corporation organized and existing under Chapter 355 of the
Revised Statutes of Missouri. The CGPDF board of directors consists of Park and Recreation
Board members and one City Council member. Due to the significant City influence and financial
accountability, the activities of this foundation are included in the financial presentation of the
City. This foundation was established to receive donations to be used for the benefit of the City.
25
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Although not component units of the City, the City handles the funds of and provides accounting
and other services for the Cape Girardeau Public Library and the SEMO Metropolitan Planning
Organization. Since these funds are held by the City, these entities are shown as Custodial Funds
in the financial statements.
2. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the primary government and
its component units. The effect of inter-fund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment is offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a
given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not
properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned, and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met. With the
economic resources measurement focus, all assets and liabilities associated with operations are
reflected in the statement of net position.
26
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation -
Continued
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual
basis, revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the City generally considers
revenues to be available if they are collected within 30 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
Debt service expenditures, as well as expenditures related to compensated absences and claims
and judgments, are recorded only when payment is due. Those revenues susceptible to accrual are
property taxes, franchise taxes, special assessments, licenses, interest revenue, and charges for
services. Sales taxes collected and held by the state at year-end on behalf of the City also are
recognized as revenue. Fines and permit revenues are not susceptible to accrual because,
generally, they are not measurable until received in cash. With the current financial resources
measurement focus, only current assets and current liabilities are generally included on the balance
sheet.
The City reports the following major governmental funds:
The general fund is the City’s primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The airport fund accounts for the receipts and expenditures of the municipal airport.
The City reports the following major proprietary funds:
The sewer fund accounts for the operation of the City’s sewage treatment plant, sewage
pumping stations, and collection systems.
The water fund accounts for the operation of the City’s water treatment plants and distribution
systems.
The solid waste fund accounts for the operation of the City’s residential solid waste and
recycling programs.
27
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation -
Continued
Additionally, the City reports the following fund types:
Internal service funds account for the management of information systems, fleet
management, employee benefits, workers’ compensation, and equipment leasing provided to
other departments or agencies of the City on a cost reimbursement basis.
Custodial funds account for the operations of the Cape Girardeau Public Library and the
SEMO Metropolitan Planning Organization.
As a general rule the effect of interfund activity has been eliminated from the gov ernment-wide
financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other
charges between the City’s enterprise function and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
It is the City’s policy to first use restricted net resources prior to the use of unrestricted net
resources when an expense is incurred for purposes for which both restricted and unrestricted net
resources are available.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the City’s enterprise funds and of the City’s internal service funds
are charges to customers for sales and services. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as non-operating revenues and expenses.
4. Cash and Investments
The City maintains an internal investment pool for the majority of its non-restricted cash and
investments and a small portion of its restricted cash and investments. Investment revenue is
allocated to each fund based on its average equity balance in the pool.
28
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Cash includes amounts in repurchase agreements and other short-term investments with a maturity
date within three months of the date of purchase.
Investments with a maturity date of one year or more at the time of purchase are recorded at fair
value. All other cash and investments are recorded at cost or amortized cost.
5. Capital Assets
All capital assets with an original cost exceeding $5,000 are recorded at historical cost or estimated
historical cost if actual historical cost is not available. Additions are recorded at cost or, if
contributed property, at their estimated fair value at time of contribution. Repairs and maintenance
are recorded as expenses; renewals and betterments are capitalized. The sale or disposal of capital
assets is recorded by removing cost and accumulated depreciation and charging the resulting gain
or loss to income.
Depreciation of all exhaustible capital assets is charged as an expense against operations in
proprietary funds and a program cost of governmental activities in the statement of activities.
Assets are reported net of depreciation on proprietary fund and government-wide statement of net
position. Depreciation has been provided over the estimated useful lives using the straight -line
method. The estimated useful lives are as follows:
Buildings 25-50 years
Improvements 10-40 years
Equipment 3-10 years
When applicable, interest costs are capitalized on self-constructed capital assets.
6. Encumbrances
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting is utilized in all funds. Encumbrances outstanding at the end of the year
in the governmental funds are reported as assigned fund balances and do not constitute
expenditures or liabilities because the commitments will be carried forward and honored during
the subsequent year. Encumbrances outstanding in the proprietary funds do not constitute
expenses but will be honored in the subsequent year. No reservations of net assets are made for
encumbrances outstanding at the end of the year on the proprietary fund and government -wide
statement of net position.
7. Inventories
Inventories consist primarily of supplies, valued at cost. The cost of inventories is recorded as
expenditures or expenses when consumed rather than when purchased.
29
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
8. Inter-fund Transactions
Quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions
that constitute reimbursements to a fund for expenditures/expenses initially made from it that are
properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund
and as reductions of expenditures/expenses in the fund that is reimbursed.
All other inter-fund transactions, except quasi-external transactions and reimbursements, are
reported as transfers. Only net transfers between governmental and business-type activities are
reflected on the government-wide statement of activities.
9. Bond Premiums, Discounts, and Issuance Costs
In governmental fund types, bond premiums, discounts, and issuance costs are recognized in the
current period. Bond premiums and discounts for proprietary fund types are deferred and
amortized over the term of the bonds. Bond issuance costs are recognized in the current period for
proprietary fund types. Bond premiums and discounts are presented as either increases or
reductions of the face amount of bonds payable. The accounting treatment of bond premiums,
discounts, and issuance costs used for governmental activities in the government-wide statements
is the same as that used for proprietary funds.
10. Prepaid Items
Payments made to vendors for services that will benefit periods beyond June 30, 2023 are recorded
as prepaid items.
11. Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for the
repayment of such bonds, are classified as restricted assets on the balance sheet because their use
is limited by applicable bond covenants. The “revenue bond construction” account is used to
report those proceeds of revenue bond issuances that are restricted for use in construction. The
“revenue bond current debt service” account is used to report resources set aside to make up
potential future deficiencies in the revenue bond current debt service account.
12. Long-Term Obligations
Only that portion of long-term obligations expected to be financed from expendable available
financial resources is reported as a fund liability of a governmental fund. Long-term liabilities
expected to be financed from proprietary fund operations are accounted for in the appropriate
proprietary fund. Long-term liabilities expected to be financed from governmental activities are
accounted for in the government-wide statement of net position.
30
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
13. Receivables
Receivables are stated at the amount the City expects to collect. Receivables are reduced by
allowances for uncollectible accounts that reflect management’s best estimate of probable losses.
These allowances are determined principally on the basis of historical experience for smaller
accounts. Larger receivables are reduced by allowances that reflect management’s best estimate
of probable losses based on specific information known about the troubled accounts. Small-
balance accounts are normally written off when over 12 months delinquent. Accounts not expected
to be collected within the next 12 months are reported as Non-current on the Statement of Net
Position only if management estimates the customer has the ability and intent to pay the balance
due.
14. Compensated Absences
Vested or accumulated vacation leave and termination pay for proprietary funds are recorded as
expenses and liabilities of those funds as the benefits accrue to employees. Amounts of vested or
accumulated vacation leave and termination pay of governmental funds are reported in the
Statement of Net Position. Employees may accumulate up to 30 days of vacation, for which they
are compensated upon termination or retirement. Employees are not compensated for accumulated
sick leave upon termination but are compensated one hour for each eight hours of unused sick
leave upon retirement.
15. Short-Term Inter-fund Receivables/Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables and payables are classified as “inter-fund
receivables/payables” on the governmental balance sheet and proprietary statement of net position.
Only net receivables between governmental and business-type activities are reflected as internal
balances on the government-wide statement of net position.
16. Advances to Other Funds
Noncurrent portions of long-term inter-fund loan receivables and payables are reported as
advances in the governmental balance sheet and proprietary statement of net position. Fund
balances equal to inter-fund loan receivables are reported as non-spendable on the governmental
balance sheet to indicate that they do not constitute expendable available financial resources and
therefore are not available for appropriation. Only net long-term inter-fund loans between
governmental and business-type activities are reflected as internal balances on the government-
wide statement of net position. Net assets are not reserved for inter-fund loan receivables on
proprietary and government-wide statements of net position.
31
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
17. Pensions
For purposes of measuring the net pension asset / liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Missouri Local Government Employees Retirement System
(LAGERS) and additions to/deductions from LAGERS fiduciary net position have been
determined on the same basis as they are reported by LAGERS. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.
18. Post-Employment Health Care Benefits
In addition to the pension benefits described in Note G, it is the City’s policy to provide
postretirement health care benefits to employees hired prior to July 1, 2010 who retired from the
City prior to April 1, 2012 with five or more years of service and who were eligible for LAGERS
retirement (Note G) or after April 1, 2012 after reaching their normal retirement ages through
LAGERS with five or more years of service. Currently, forty-seven retirees meet those eligibility
requirements. The City provides health care coverage for them until age 65. The costs of retirees’
health care benefits are recognized as expenditures as premiums are paid. For the year ending
June 30, 2023, those costs totaled $793,207.
COBRA Benefits - Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the
City provides health care benefits to eligible former employees and eligible dependents. Certain
requirements are outlined by the federal government for this coverage. The premium is paid in
full by the insured on or before the tenth (10th) day of the month for the actual month covered.
This program is offered for the duration of 18 months after the termination date for employees and
their families and 36 months for surviving spouses and children. There is no associated cost to the
City under this program. There were one hundred fifteen participants in the health insurance
program and one hundred forty-three participants in the dental insurance program as of June 30,
2023.
19. Infrastructure
The City defines infrastructure as the basic physical assets that allow the City to function. The
assets include the street system, water system, sewer system, parks and recreation lands and
improvement system, storm water system, and buildings combined with the site amenities such as
parking and landscaped areas used by the City in the conduct of its business. Infrastructure of the
water and sewer systems were routinely capitalized in the water and sewer funds of the City and
are reflected as other improvements in the business-type activities section on the statement of
activities.
During the year ended June 30, 2023 all infrastructures completed during the fiscal year, including
projects started in a previous year, were recorded at their historical costs.
32
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
20. Subsequent Events
In preparing these financial statements, the City has evaluated events and transactions for potential
recognition or disclosure through January 20, 2024, the date the financial statements were available
to be issued.
NOTE B - DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds. Each fund’s
portion of this pool is displayed as “Pooled cash and investments” on the various financial
statements. The pooled deposits and investments held at June 30, 2023, and reported at fair value,
are as follows:
Deposits:
Demand Deposits $ 426,793
Interest Bearing Deposit Accounts 91,629,110
Total Deposits $ 92,055,903
Investments:
Negotiable Instruments $ 10,521,895
Total Investments $ 10,521,895
Accrued Interest Revenue $ 59,708
Total Pooled Deposits and Investments $ 102,637,506
As of June 30, 2023, the City had the following pooled investments:
Investments Maturities Fair Value
Negotiable Instruments 08/03/23 – 09/23/27 $10,521,895
Total $10,521,895
Reconciliation of Pooled Cash and Investments to Statements:
Governmental Pooled Cash and Investments $ 71,375,167
Business-type Pooled Cash and Investments 28,700,361
Fiduciary Pooled Cash and Investments 2,561,978
Total Pooled Cash and Investments $102,637,506
33
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE B - DEPOSITS AND INVESTMENTS - continued
The City also has deposits and investments that are not part of the City’s cash and investment
pool. These deposits and investments held at June 30, 2023, and reported at fair value, are as
follows:
Deposits:
Interest Bearing Deposit Accounts $5,609,150
Total Deposits $5,609,150
Investments:
U. S. Treasury Note $ 395,919
Total Investments $ 395,919
Total Non-pooled Deposits and Investments $6,005,069
As of June 30, 2023, the City had the following non-pooled investments
U. S. Treasury Note 12/12/22 – 12/31/23 $ 395,919
Total $ 395,919
Reconciliation of Non-pooled Deposits and Investments to Statements:
Governmental Investments $ 397,777
Business-type Restricted Cash and Cash Equivalents 5,245,143
Fiduciary Cash and Cash Equivalents 362,149
Total Non-pooled Deposits and Investments $6,005,069
Custodial Credit Risk:
Deposits in financial institutions, reported as components of cash, cash equivalents, and
investments, had a bank balance of $98,322,681 at June 30, 2023, that was fully insured by
depository insurance or secured with collateral held by the City’s agents in its name. All
investments, evidenced by individual securities, are registered in the name of the City.
Investment Interest Rate Risk
The City’s investment policy states that “Market price volatility shall be controlled by
matching the City’s investments with anticipated cash flow requirements. The City will not
directly invest in securities maturing more than seven years.” The maturities of investments
held at June 30, 2023 are provided above.
34
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE B - DEPOSITS AND INVESTMENTS - continued
Investment Credit Risk
The City has an investment policy that limits its investment choices as follows:
a. Direct obligations of the U.S. Government, its agencies, and instrumentalities
to which the full faith and credit of the U.S. Government is pledged, or
obligations to the payment of which the full faith and credit of the State is
pledged;
b. Certificates of deposit or savings accounts that are either insured or secured
with acceptable collateral with in-state financial institutions, and fully insured
certificates of deposit or savings accounts in out-of-state financial institutions;
c. Repurchase agreements collateralized by securities listed in (a.) above,
documented by a written agreement, fully collateralized by delivery to an
independent third-party custodian, and are marked-to-market;
d. Money market mutual funds whose portfolio consists of the foregoing
instruments; and,
e. Other prudent investment instruments approved prior to purchase by a two-
thirds majority of the City Council. Bond proceeds may be invested as allowed
in the bond indenture.
Concentration of Investment Credit Risk
The City places no limit on the amount it may invest in any one issuer. At June 30, 2023, the
City had no concentration of credit risk.
NOTE C – LEASE RECEIVABLE
LEASES:
Lease (Lessor) agreements are summarized as follows:
35
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE C – LEASE RECEIVABLE - continued
Total Deferred Balance
Description Date Terms Amount Interest Rate Inflows June 30, 2023
Larry Eftink Farms 1/1/2022 5 years 57,781$ 3.25%213,122$ 217,662$
Crown Castle 12/7/1998 45 years 4,564 3.25%330,954 344,859
Now-Verticale Bridge 1/1/2006 25 years 8,362 3.25%52,819 66,658
Nemiesis Flight Ops 2/1/2015 25 years 3,281 3.25%63,200 69,646
DSW Signs, LLC 1/31/2021 20 yers 2,137 3.25%48,484 49,039
Republic Services 12/15/2014 20 years 40,592 3.25%559,100 575,083
Jones Lang Lasalle Americas 9/24/2013 10 years 41,409 3.25%42,503 44,102
Total Lease Revenue 1,367,049$
The City’s leasing operations consist of leasing land and other miscellaneous assets with various
customers. All leases contain an original lease agreement ranging from five to forty-five years.
Payments are made to the City in either monthly or yearly amounts. Each customer’s rental
payments are adjusted on an annual basis according to contractually specified types of Consumer
Price Indexes or the Producer Price Index (All Commodities).
The City will recognize annual rental and interest revenue as follows:
Year Ending Rental Interest
June 30, Revenue Revenue
2024 $ 164,662 $ 41,312
2025 124,530 35,827
2026 128,631 31,815
2027 99,704 29,266
2028 71,694 27,061
2029-2033 364,730 99,424
2034-2038 197,825 49,023
2039-2043 111,405 27,877
2044-2047 103,868 8,705
$1,367,049 $ 350,310
NOTE D – PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on
August 15, 2022, for collection during this fiscal year and were due on or before December 31.
Most of the taxes are collected for the City by Cape Girardeau County in November and December
and remitted to the City in December and January. The tax rates assessed at the time were as
follows:
36
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE D – PROPERTY TAXES – continued
General Revenue $.3057/100.00 assessed valuation
Public Health .0573/100.00 assessed valuation
Special Business District .6789/100.00 assessed valuation
#2 (Ad Valorem)
Property tax receivable balances as of June 30, 2023 are as follows:
General Public
Revenue Health Total
Current property tax 76,583$ 14,356$ 90,939$
Delinquent property tax 258,274 48,360 306,634
Reserve for doubtful
property taxes (17,162) (3,214) (20,376)
Net property tax receivable 317,695$ 59,502$ 377,197$
NOTE E - CHANGES IN CAPITAL ASSETS
A summary of the capital assets for governmental activities included on the government-wide
statement of net position for the year ended June 30, 2023 is as follows:
Balance Current Year Balance
July 1, 2022 Additions Deductions Depreciation*6/30/2023**
Land 10,947,369$ -$ (3,795,855)$ -$ 7,151,514$
Buildings 46,397,322 613,384 - (2,001,811) 45,008,895
Land improvements 17,912,410 882,675 - (950,878) 17,844,207
Equipment 13,744,074 1,689,859 (25,807) (2,201,005) 13,207,121
Infrastructure 131,037,632 5,725,282 - (5,796,432) 130,966,482
Construction in progress 4,283,009 15,313,573 (5,544,778) - 14,051,804
Total capital assets 224,321,816$ 24,224,773$ (9,366,440)$ (10,950,126)$ 228,230,023$
* Includes depreciation expenses from the internal service funds’ assets which are included in the expenses of the
governmental activities and business activities on the government-wide Statement of Activities as internal
charges.
**Includes the internal service funds’ assets which are included as part of the governmental activities assets
included on the government-wide Statement of Net Position.
37
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE E – CHANGES IN CAPITAL ASSETS – continued
A summary of the capital assets for business-type activities included on the government-wide
statement of net position for the year ended June 30, 2023 is as follows:
Balance Current Year Balance
July 1, 2022 Additions Deductions Depreciation*6/30/2023**
Land 1,985,018$ -$ -$ -$ 1,985,018$
Buildings 14,503,232 46,626.00 - (485,040) 14,064,818
Improvements other
than buildings 147,786,906 4,823,984 - (6,189,615) 146,421,275
Equipment 7,169,935 542,617 (19,517.00) (924,387) 6,768,648
Construction in progress 2,333,714 4,165,107 (4,136,045) - 2,362,776
Total capital assets 173,778,805$ 9,578,334$ (4,155,562)$ (7,599,042)$ 171,602,535$
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrative $ 12,880
Development Services 688,396
Parks and Recreation 1,844,302
Public Safety 995,177
Public Works 7,409,371
Total $ 10,950,126
Business-Type Activities:
Golf Course $ 143,419
Sewer 4,336,514
Sporting Complexes 282,764
Sportsplex 323,454
Solid Waste 399,111
Water 2,113,780
Total $ 7,599,042
38
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS
The following is a summary of changes in the long-term debt from governmental activities
included on the government-wide statement of net position for the year ended June 30, 2023:
Government Other
Activities Debt*Total
Debt payable June 30, 2022 46,450,640$ 46,450,640$
Discount/Premium
Amortization (18,160) (18,160)
Issued - -
Retired (4,879,456) (4,879,456)
Debt payable June 30, 2023 41,553,024$ 41,553,024$
*Other Debt includes Notes Payable and Special Obligation Bonds.
The following is a summary of changes in the long-term debt from business-type activities
included on the government-wide statement of net position for the year ended June 30, 2023:
Business-Type Other Revenue
Activities Debt*Bonds Total
Debt payable June 30, 2022 2,370,000$ 56,398,420$ 58,768,420$
Discount/Premium
Amortization - (70,112) (70,112)
Issued - - -
Retired (327,136) (4,011,000) (4,338,136)
Debt payable June 30, 2023 2,042,864$ 52,317,308$ 54,360,172$
*Other Debt includes Special Obligation Bonds
Bonds payable for governmental and business-type activities at June 30, 2023 are comprised of
the following individual issues:
39
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS – Continued
$21,526,000 Sewerage System Revenue Bonds (State of Missouri – Direct Loan Program) Series
2012 due as follows:
Year Ending Interest Principal Interest Admin
June 30, Rate Due Due Fee Total
2024 1.430% $ 1,527,000 $ 281,074 $ 98,278 $ 1,906,352
2025 1.430% 1,565,000 259,102 90,595 1,914,697
2026 1.430% 1,604,000 236,586 82,722 1,923,308
2027 1.430% 1,644,000 213,506 74,653 1,932,159
2028 1.430% 1,684,000 189,854 66,382 1,940,236
2029 1.430% 1,726,000 165,622 57,910 1,949,532
2030 1.430% 1,769,000 140,791 49,228 1,959,019
2031 1.430% 1,813,000 115,337 40,327 1,968,664
2032 1.430% 1,857,000 89,253 31,208 1,977,461
2033 1.430% 1,904,000 62,534 21,865 1,988,399
2034 1.430% 1,950,000 35,142 12,287 1,997,429
2035 1.430% 992,000 7,093 2,480 1,001,573
Total $20,035,000 $1,795,894 $ 627,935 $22,458,829
Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were
issued by the City on June 19, 2012. A 1% administrative fee and a 1.43% interest rate were
originally charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to
.5%. Principal was disbursed on this loan as needed.
The proceeds of the bond issue were used to acquire, construct, extend, and improve the existing
sewerage system.
Principal payments are made annually on July 1, while interest payments are made semi-annually
on January 1 and July 1.
40
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
$2,246,000 Sewerage System Revenue Bonds (State of Missouri – Direct Loan Program) Series
2013A due as follows:
Year Ending Interest Principal Interest Admin
June 30, Rate Due Due Fee Total
2024 1.390% $ 161,000 $ 28,481 $ 10,245 $ 199,726
2025 1.390% 165,000 26,229 9,435 200,664
2026 1.390% 169,000 23,922 8,605 201,527
2027 1.390% 173,000 21,559 7,755 202,314
2028 1.390% 177,000 19,140 6,885 203,025
2029 1.390% 181,000 16,666 5,995 203,661
2030 1.390% 185,000 14,136 5,085 204,221
2031 1.390% 189,000 11,551 4,155 204,706
2032 1.390% 193,000 8,910 3,205 205,115
2033 1.390% 197,000 6,213 2,235 205,448
2034 1.390% 202,000 3,461 1,245 206,706
2035 1.390% 97,000 675 242 97,917
Total $ 2,089,000 $ 180,943 $ 65,087 $ 2,335,030
Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were
issued by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were
originally charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to
.5%. Principal was disbursed on this loan as needed.
The proceeds of the bond issue were used to acquire, construct, extend, and improve the existing
sewerage system.
Principal payments are made annually on July 1, while interest payments are made semi-annually
on January 1 and July 1.
41
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
$24,699,000 Sewerage System Revenue Bonds (State of Missouri – Direct Loan Program) Series
2013B due as follows:
Year Ending Interest Principal Interest Admin
June 30, Rate Due Due Fee Total
2024 1.390% $ 1,768,000 $ 313,188 $ 112,657 $ 2,193,845
2025 1.390% 1,808,000 288,474 103,768 2,200,242
2026 1.390% 1,850,000 263,196 94,675 2,207,871
2027 1.390% 1,893,000 237,336 85,372 2,215,708
2028 1.390% 1,935,000 210,877 75,855 2,221,732
2029 1.390% 1,981,000 183,821 66,123 2,230,944
2030 1.390% 2,026,000 156,132 56,162 2,238,294
2031 1.390% 2,072,000 127,810 45,975 2,245,785
2032 1.390% 2,120,000 98,843 35,555 2,254,398
2033 1.390% 2,169,000 69,208 24,895 2,263,103
2034 1.390% 2,219,000 38,885 13,987 2,271,872
2035 1.390% 1,130,000 7,853 2,825 1,140,678
Total $22,971,000 $1,995,623 $ 717,849 $25,684,472
Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were
issued by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were
originally charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to
.5%. Principal was disbursed on this loan as needed.
The proceeds of the bond issue were and will be used to acquire, construct, extend, and improve
the existing sewerage system.
Principal payments are made annually on July 1, while interest payments are made semi-annually
on January 1 and July 1.
On February 4, 2013, the City entered into an agreement with the Southeast Missouri State
University Foundation for the purchase of approximately 247.43 acres located on the east side of
Interstate 55 along LaSalle Street for the purpose of creating a business park. During the fiscal
year ending June 30, 2017, the City entered into an agreement with Southeast Missouri State
University for the university to make $1.84 million in improvements to the City’s Capaha Park
Baseball Field in exchange for the City amending the original note dated February 4, 2013 to
include two additional payments of $460,000 due on February 4, 2026 and 2027.
42
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
The total purchase price of the land was $6,000,000, with $480,000 paid at the time of closing and
twelve (12) annual payments of $460,000 commencing 12 months from the closing date of the
sale. The note payable was recorded at the net present value of the payments discounted at 3.26%.
The note payable was later adjusted for the two additional payments at the net present value of the
payments discounted at 2.77%. This note was paid in full during the year ended June 30, 2023.
$5,122,000 Refunding Special Obligation Bonds, Series 2022 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2024 1.990% $ 725,000 $ 87,858 $ 812,858
2025 1.990% 750,000 73,432 823,432
2026 1.990% 440,000 58,506 498,506
2027 1.990% 450,000 49,750 499,750
2028 1.990% 455,000 40,796 495,796
2029 1.990% 465,000 31,740 496,740
2030 1.990% 470,000 22,488 492,488
2031 1.990% 475,000 13,134 488,134
2032 1.990% 185,000 3,682 188,682
Total $ 4,415,000 $ 381,386 $4,796,386
Principal payments are made annually on June 1, and interest payments are made semi-annually
on June 1 and December 1.
In August 2015, the City of Cape Girardeau issued $9,625,000.00 of Special Obligation Bonds,
Series 2015 with the interest rates varying from 2.500% to 3.625%. The bonds are special
obligations of the City payable solely from the revenues derived from annual appropriations by
the City Council. These bonds were refinanced during the year
The Refunding Special Obligation Bond Series 2022 totaling $5,122,000 dated February 22, 2022
has an interest rate of 1.990 percent. The proceeds of the agreement were to advance refund of the
City’s outstanding Special Obligation Bonds, Series 2015A. Principal payments are due June 1,
and interest payments are due on June 1 and December 1. The agreement matures on June 1, 2032.
The refinancing provided the City saving of $367,693.
43
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
The bonds were issued by the City for the purpose of providing funds to (a) construct, furnish, and
equip a new fire station; construct a new transfer station; renovate and improve existing fire and
police stations; renovate and expand a new police station; acquire vehicles for the fire department;
and construct an indoor sports complex, (b) fund capitalized interest on the Bonds and, (c) pay the
costs of issuing the Bonds, under the authority of and in full compliance with the City’s Charter
and the Constitution and laws of the State of Missouri, and pursuant to an ordinance duly passed
and proceedings duly and legally had by the governing body of the City.
$15,355,000 Special Obligation Bonds, Series 2016 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2024 2.000% $ 1,370,000 $ 398,919 $ 1,768,919
2025 2.000% 1,420,000 371,518 1,791,518
2026 2.000% 1,460,000 343,119 1,803,119
2027 2.125% 1,505,000 313,919 1,818,919
2028 3.000% 1,550,000 281,937 1,831,937
2029 4.000% 1,625,000 235,438 1,860,438
2030 4.000% 1,715,000 170,437 1,885,437
2031 3.000% 1,190,000 101,838 1,291,838
2032 3.000% 430,000 66,137 496,137
2033 3.000% 450,000 53,238 503,238
2034 3.000% 470,000 39,737 509,737
2035 3.000% 490,000 25,638 515,638
2036 3.125% 350,000 10,937 360,937
Total $14,025,000 $2,412,812 $16,437,812
Principal payments are made annually on June 1, and interest payments are made semi-annually
on June 1 and December 1.
In May 2016, the City of Cape Girardeau issued $27,350,000 of Special Obligation Bonds, Series
2016 with interest rates varying from 2.000% to 4.000%. The bonds are special obligations of the
City payable solely from the revenues derived from annual appropriations by the City Council.
The bonds were issued by the City for the purpose of providing funds to (a) refund all of the
Leasehold Revenue Bonds, Series 2009, (b) expanding, renovating, and equipping a building to
serve as a new police headquarters; constructing an indoor sports complex; constructing,
furnishing, and equipping a new fire station; and other capital improvement projects and, (c) pay
the costs of issuing the Bonds, under the authority of and in full compliance with the City’s Charter
and the constitution and laws of the State of Missouri, and pursuant to an ordinance duly passed
and proceedings duly and legally had by the governing body of the City.
44
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
$8,710,000 Special Obligation Bonds, Series 2018 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2024 N/A $ -0- $ 297,610 $ 297,610
2025 N/A -0- 297,610 297,610
2026 N/A -0- 297,610 297,610
2027 N/A -0- 297,610 297,610
2028 N/A -0- 297,610 297,610
2029 N/A -0- 297,610 297,610
2030 N/A -0- 297,610 297,610
2031 3.300% 1,755,000 297,610 2,052,610
2032 3.400% 2,460,000 239,695 2,699,695
2033 3.450% 2,540,000 156,055 2,696,055
2034 3.500% 1,955,000 68,425 2,023,425
Total $ 8,710,000 $2,845,055 $11,555,055
Principal payments are made annually on June 1, and interest payments are made semi-annually
on June 1 and December 1.
In October 2018, the City of Cape Girardeau issued $8,710,000 of Special Obligation Bonds,
Series 2018 with interest rates varying from 3.300% to 3.500%. The bonds are special obligations
of the City payable solely from the revenues derived from annual appropriations by the City
Council.
The bonds were issued by the City for the purpose of providing funds to (a) pay the costs of
stormwater and parks projects, and (b) pay the costs of issuing the Bonds, under the authority of
and in full compliance with the City’s Charter and the constituti on and laws of the State of
Missouri, and pursuant to an ordinance duly passed and proceedings duly and legally had by the
governing body of the City.
45
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
$7,515,000 Waterworks Refunding Revenue Bonds, Series 2019 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2024 4.000% $ 660,000 $ 234,350 $ 894,350
2025 4.000% 685,000 207,950 892,950
2026 4.000% 710,000 180,550 890,550
2027 4.000% 740,000 152,150 892,150
2028 3.000% 770,000 122,550 892,550
2029 3.000% 795,000 99,450 894,450
2030 3.000% 815,000 75,600 890,600
2031 3.000% 840,000 51,150 891,150
2032 3.000% 865,000 25,950 890,950
Total $ 6,880,000 $1,149,700 $ 8,029,700
On October 15, 2019, the City issued $8,650,000 of Refunding Revenue Bonds with total proceeds
of $9,394,508 at a true interest cost of 2.13%. The proceeds were used to refund the outstanding
Series 2012A Bonds.
The Bonds were issued with interest varying from 3.0% to 4.0%. Principal and interest will be
paid by the City from the revenues derived from the operation of the waterworks system.
Principal payments are made annually on January 1, and interest payments are made semi-annually
on January 1 and July 1.
$17,135,000 Special Obligation Bonds, Series 2020 due as follows:
Year Ending Interest Principal Interest
June 30, Rate Due Due Total
2024 2.460% $ 1,165,000 $ 385,592 $ 1,550,592
2025 2.460% 1,190,000 355,210 1,545,210
2026 2.460% 1,225,000 325,094 1,550,094
2027 2.460% 1,255,000 294,168 1,549,168
2028 2.460% 1,280,000 263,230 1,543,230
2029 2.460% 1,310,000 230,256 1,540,256
2030 2.460% 1,345,000 197,148 1,542,148
2031 2.460% 1,380,000 163,166 1,543,166
2032 2.460% 1,410,000 128,676 1,538,676
2033 2.460% 1,445,000 92,770 1,537,770
2034 2.460% 1,480,000 56,294 1,536,294
2035 2.460% 1,515,000 18,945 1,533,945
Total $16,000,000 $2,510,549 $18,510,549
46
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
On January 3, 2020, the City of Cape Girardeau issued $17,135,000 of Special Obligation Bonds,
Series 2020 with a 2.46% interest rate. The bonds are special obligations of the City payable solely
from the revenues derived from annual appropriations by the City Council. Proceeds of the bonds
were received as follows:
January 3, 2020 $1,835,000
September 15, 2020 2,300,000
December 1, 2020 4,000,000
June 1, 2021 4,000,000
December 1, 2021 5,000,000
Interest is only charged on principal that has been received.
The bonds were issued by the City for the purpose of providing funds to (a) pay the cost the
relocation and renovation of City Hall, and (b) may be used to finance, in any priority, the
construction of a new airport terminal and air traffic control tower at Cape Girardeau Regional
Airport, improvements to the Waterworks System, and street improvements.
Principal payments are made annually on December 1, and interest payments are made semi-
annually on June 1 and December 1.
The cash and investments available to service revenue bonds are $-0- and $4,663,310 for the
governmental and business-type activities, respectively.
The cash and investments available to service the special obligation bonds are $-0- and $11,260 in
governmental activities and business-type activities, respectively.
The annual requirements to amortize all debt outstanding as of June 30, 2023 including total
interest payments of $13,271,962 and total administrative fees of $1,410,871 are as follows:
47
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE F - LONG-TERM OBLIGATIONS - Continued
Special
Year Ending Obligation Revenue
June 30,Bonds Bonds Total
2024 4,429,979$ 5,194,273$ 9,624,252$
2025 4,457,770 5,208,553 9,666,323
2026 4,149,329 5,223,256 9,372,585
2027 4,165,447 5,242,331 9,407,778
2028 4,168,573 5,257,543 9,426,116
2029 4,195,044 5,278,587 9,473,631
2030 4,217,683 5,292,134 9,509,817
2031 5,375,748 5,310,306 10,686,054
2032 4,923,190 5,327,924 10,251,114
2033 4,737,063 4,456,949 9,194,012
2034 4,069,456 4,476,007 8,545,463
2035 2,049,583 2,240,168 4,289,751
2036 360,937 - 360,937
Total 51,299,802 58,508,031 109,807,833
Interest expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Interest and Other Costs $1,469,315
Total $1,269,315
Business-Type Activities:
Sewer $ 955,728
Solid Waste 70,226
Water 177,257
Total $1,203,211
Missouri statutes limit the amount of general obligation debt that a city can issue to 5.00% of the
total assessed value of taxable property located within that city’s boundaries. The legal debt
margin for the City of Cape Girardeau is $37,223,573.
48
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE G – CONDUIT DEBT OBLIGATIONS
To further economic development in the City, the City of Cape Girardeau, Missouri has issued
bonds that provide capital financing to a private-sector entity for the acquisition and construction
of industrial and commercial facilities. The property financed is pledged as collateral, and the
bonds are payable solely from payments received from private-sector entity on the underlying
mortgage or promissory note. In addition, no commitments, beyond the collateral, the payments
from the private-sector entity, and maintenance of the tax-exempt status of the conduit debt
obligation were extended by the City of Cape Girardeau, Missouri for the bonds. At June 30, 2023,
the bonds have an aggregate outstanding principal amount payable of $968,671.
NOTE H – NOTE RECEIVABLE
On November 10, 2022, the city entered into an agreement for the sale of land. The City received
$1,846,153 in cash and $850,000 in a note in full payment of the land purchase. The note is a non-
interest bearing and is recorded at the present value of the futures cash flows, utilizing an imputed
interest rate of 4.10%, which equals $801,030. The note is due in annual installments. The note
receivable is due as follows:
Year Ending
June 30,Principal Due Interest Due Total
2024 -$ -$ -$
2025 141,298 33,987 175,285
2026 288,796 11,204 300,000
Total 430,094$ 45,191$ 475,285$
NOTE I - PENSION PLAN
1. Plan Description
The City of Cape Girardeau’s defined benefit pension plan provides certain retirement, disability,
and death benefits to plan members and beneficiaries. The City participates in the Missouri Local
Government Employees Retirement System (LAGERS). LAGERS is an agent multiple-employer,
statewide public employee pension plan established in 1967 and administered in accordance with
RSMo. 70.600-70.755. As such, it is LAGERS’ responsibility to administer the law in accordance
with the expressed intent of the General Assembly. The plan is qualified under the Internal
Revenue Code Section 401(a) and is tax exempt. The responsibility for the operations and
administration of LAGERS is vested in the LAGERS Board of Trustees consisting of seven
persons. LAGERS issues a publicly available financial report that includes financial statements
and required supplementary information. This report may be obtained by accessing the LAGERS
website at www.molagers.org.
49
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE I – PENSION PLAN - continued
2. Benefits Provided
LAGERS provides retirement, death, and disability benefits. Benefit provisions are adopted by the
governing body of the employer, within the options available in the state statutes governing
LAGERS. All benefits vest after 5 years of credited service. Employees who retire on or after age
60 (55 for police and fire) with 5 or more years of service are entitled to an allowance for life based
upon the benefit program information provided below. Employees may retire with an early
retirement benefit with a minimum of 5 years of credited service and after attaining age 55 (50 for
police and fire) and receive a reduced allowance.
Effective October 1, 2022 the City began providing benefits to its current employees under the L-
6 benefit program available through LAGERS. Previously the City was providing benefits to its
current employees under the LT-14 (65) benefit program. Future benefits will be based on the final
3 year average salary multiplied by 2.00% and by years of service. The future benefits are
multiplied by 2.00% until age 65. The final 3 year average equals the 36 consecutive months of
credited services, producing the highest monthly average during the last 120 consecutive months
of credited service immediately preceding retirement.
Benefit terms provide for annual post retirement adjustments to each member’s retirement
allowance subsequent to the member’s retirement date. The annual adjustment is based on the
increase in the Consumer Price Index and is limited to 4% per year.
3. Covered Employees
At June 30, 2023 the following employees were covered by the benefits terms:
Retirees and Beneficiaries 311
Inactive, Non-retired Members 210
Active Members 322
Total 843
4. Contributions
Full-time employees of the City of Cape Girardeau do not contribute to the pension plan. The City
is required to contribute amounts at least equal to the actuarially determined rate, as established by
LAGERS. The actuarially determined rate is the estimated amount necessary to finance the cost
of benefits earned by employees during the year. Additional adjustments are made to these rates
based on the over or under funded status of each plan with additional charges to finance any
unfunded accrued liability or credits to use a portion of the assets from plans that have more assets
than accrued liability. The current year employer annual contribution rates were 8.4% (General),
50
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE I – PENSION PLAN - continued
11.4% (Police) and 14.0% (Fire) of annual covered payroll from July 1, 2022 to September 30,
2022, and 10.1% (General), 12.7% (Police), and 14.3% (Fire) of annual covered payroll from
October 1, 2022 to June 30, 2023.
The original annual required contribution (ARC) was determined as part of the February 28, 2021
annual actuarial valuation using the entry age actuarial cost method.
5. Net Pension Asset
The City’s net pension asset was measured as of June 30, 2023, and the total pension liability used
to calculate the net pension asset was determined by an actuarial valuation as of February 28, 2023.
6. Actuarial Assumptions
The total pension liability in the February 28, 2023 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.75% wage inflation, 2.25% price inflation
Salary Increase 2.75% to 7.15% including wage inflation
Investment Rate of Return 7.00% net of investment expenses
The healthy retiree mortality tables, for post-retirement mortality, used in evaluating allowances
to be paid were 115 percent of the PubG-2010 retiree for males and females. The disabled retiree
mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115
percent of the PubNS-2010 disabled retiree mortality table for males and females. The pre-
retirement mortality tables used were 75 percent of the PubG-2010 employee mortality table for
males and females of general groups and 75 percent of the PubS-2010 employee mortality table
for males and females of the Police, Fire, and Public Safety groups. Mortality rates for a particular
calendar year are determined by applying the MP-2020 mortality improvement scale to the above
described tables.
The actuarial assumptions used in the February 28, 2023 valuation were based on the results of an
actuarial experience study for the period March 1, 2015 through February 29, 2020.
The long-term expected rate of return on pension plan investments was determined using a model
method in which the best-estimate ranges of expected future real rates of return (expected returns,
net of investment expenses and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation. The
target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
51
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE I – PENSION PLAN - continued
Weighted Average
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Alpha 15.00% 3.67%
Equity 35.00% 4.78%
Fixed Income 31.00% 1.41%
Real Assets 36.00% 3.29%
Strategic Assets 8.00% 5.25%
Cash/Leverage -25.00% -0.29%
7. Discount Rate
The discount rate used to measure the total pension liability is 7.00%. The projection of cash flows
used to determine the discount rate assumes that the City’s contributions will be made at the
actuarially determined rates. Based on these assumptions, the pension plan’s fiduciary net position
was projected to be available to pay all projected future benefit payments of current active and
inactive employees. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payment to determine the total pension liability.
8. Changes in the Net Pension Asset
Plan Fiduciary Total Pension Net Pension
Net Position Liability Asset
(a)(b)(a) - (b)
Balances at 6/30/2022 116,407,700$ 97,790,795$ 18,616,905$
Changes for the year:
Service cost - 1,823,372 (1,823,372)
Interest - 6,731,603 (6,731,603)
Change in Benefit Terms - 4,792,998 (4,792,998)
Difference between expected
and actual experience - 4,122,762 (4,122,762)
Contributions - employer 5,900,753 - 5,900,753
Net investment income 4,182,544 - 4,182,544
Benefit payments, including refunds (5,129,360) (5,129,360) -
Administrative expense (118,125) - (118,125)
Other changes (315,979) - (315,979)
Net changes 4,519,833 12,341,375 (7,821,542)
Balances at 6/30/2023 120,927,533 110,132,170 10,795,363
Increase (Decrease)
52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE I – PENSION PLAN - Continued
Net Pension Asset (Liability) of the City, calculated using the discount rate of 7.00%, as well as
what the City’s Net Pension Asset (Liability) would be using a discount rate that is 1 percentage
point lower (6.00%) or one percentage point higher (8.00%) than the current rate.
Current Single Discount
1% Decrease Rate Assumption 1% Increase
6.00% 7.00% 8.00%
$(4,767,505) $10,795,363 $23,619,151
9. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended June 30, 2023 the City recognized pension expense of $5,909,194. The
employer reported deferred outflows and inflows of resources related to pensions from the
following sources:
Net
Deferred Deferred Outflows
Outflows Inflows (Inflows)
of Resources of Resources of Resources
Differences in experience $ 4,368,414 $ (1,447,714) $ 2,938,700
Differences in assumptions -0- (689,326) (689,326)
Excess (deficit) in investment returns 1,434,640 -0- 1,434,640
Total $ 5,821,054 $ (2,137,040) $ 3,684,014
Amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended:
2024 $ 248,712
2025 (1,114,449)
2026 3,213,769
2027 1,118,584
2028 198,945
Thereafter 18,453
Total $ 3,684,014
53
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE I – PENSION PLAN - continued
10. Payable to the Pension Plan
At June 30, 2023 the City reported a payable of $251,989 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2023.
NOTE J – POSTRETIREMENT HEALTHCARE BENEFITS
1. Description
The City follows the provisions of GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pensions. In addition to the relevant disclosures within
this note related to GASB Statement No. 75, the financial statements reflect a long -term liability
and related expenses of $8,990,936 and $66,694, respectively, in the governmental and business-
type activities combined.
The City, through its substantive commitment to provide other post-employment benefits (OPEB),
maintains a single-employer defined benefit plan to provide certain postretirement healthcare
benefits to all eligible former full-time employees until the retiree is eligible for Medicare (age
65). Such benefits are not available to members’ spouses or dependents - only to eligible former
employees as previously described. Specific details of the Plan include the provision of certain
medical and dental coverage. These benefits are provided through the City’s self-insured
programs. The City is under no statutory or contractual obligation to provide these postretirement
healthcare benefits. Because the Plan consists solely of the City’s firm commitment to provide
OPEB through the payment of premiums to its self-insured programs on behalf of its eligible
retirees, no stand-alone financial report is either available or generated.
2. Funding Policy
Premiums under the Plan for post-employment healthcare benefits are funded in accordance with
rates established by the City for its governmental and business-type funds. Effective July 1, 2010,
employees hired on or after that date will not qualify for retiree healthcare coverage. Effective
April 1, 2012 employees who retire early (prior to age 55 for police and fire and prior to age 60
for all other city employees) are not eligible for retiree healthcare coverage. For the year ended
June 30, 2023, the City paid the full premium cost for eligible retired employees who were hired
prior to January 1, 2007. For eligible employees hired on/after January 1, 2007, the City paid a
percentage of the full premium cost for retired employees with single coverage according to years
of service at retirement. For employees with 10 to 14 years of service at retirement, the City’s
subsidy was 50%. The subsidy for employees with 15 to 19 years of service was 60%, 20 to 24
years was 70%, and employees with more than 24 years of service at retirement received 100%
subsidy. The retiree is responsible for the full cost of dependent coverage. The plan is financed
on a pay-as-you-go basis.
54
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE J – POSTRETIREMENT HEALTHCARE BENEFITS - Continued
3. Employees Covered by Benefit Terms
As of June 30, 2023, the following employees were covered by the benefit terms:
Retirees 49
Active 119
Total 168
4. Total OPEB Liability
The City’s total OPEB liability of $8,990,936 was measured as of June 30, 2023, and was
determined by an actuarial valuation date of June 30, 2022 with results actuarially projected to the
June 30, 2023 measurement date, reflecting actual premiums and contributions.
5. Actuarial Assumptions and Other Inputs
Inflation – 2.75%
Salary increases – 2.75% plus merit / productivity increases as shown on the Missouri Local
Government Retirement System’s June 30, 2021 actuarial valuation
Discount Rate - 4.13% as of June 30, 2023 and 4.09% as of June 30, 2022
Healthcare cost trend rates - Medical / Rx cost trend rate of 7.0% for 2023, gradually decreasing
to an ultimate rate of 4.5% for 2029 and beyond
Dental cost trend rate of 4.0% for 2024 and beyond
Mortality – SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using
Scale MP-2021 is used for General employees and retirees. SOA Pub-2010 Public Safety
Headcount Weighted Mortality Table fully generational using Scale MP-2021 is used for Police
and Fire employees and retirees. SOA Pub-2010 Contingent Survivor Headcount Weighted
Mortality Table fully generational using Scale MP-2021 is used for surviving spouses.
Actuarial Cost Method - Entry Age Normal
The discount rate was based on 20 Year Bond GO Index.
The plan has not had a formal actuarial experience study performed.
55
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE J – POSTRETIREMENT HEALTHCARE BENEFITS - Continued
6. Changes in the Total OPEB Liability
Balance at June 30, 2022 $ 8,566,940
Changes for the Year:
Service Cost 152,218
Interest on Total OPEB Liability 341,966
Change of Benefit Terms -0-
Effect of Economic/Demographic Gains or Losses (24,972)
Effect of Assumptions Changes or Inputs 678,313
Benefit Payments (723,529)
Net Changes 423,996
Balance at June 30, 2022 $ 8,990,936
7. Sensitivity Analysis
The following presents the total OPEB liability of the City, calculated using the discount rate of
4.13%, as well as what the City’s total OPEB liability would be if it were calculated using a
discount rate that is one percentage point higher (5.13%) or lower (3.13%) than the current rate.
Healthcare Cost
Trend Rates
1% Decrease Rate Assumption 1% Increase
Net OPEB liability 9,641,705$ 8,990,936$ 8,394,553$
Sensitivity of Net OPEB Liability as of June 30, 2023
to the Healthcare Cost Trend Rate Assumption
The following presents the total OPEB liability of the City, calculated using the current healthcare
cost trend rates as well as what the City’s total OPEB liability would be if it were calculated using
trend rates that are one percentage point higher or lower than the current trend rates.
Healthcare Cost
Trend Rates
1% Decrease Rate Assumption 1% Increase
Net OPEB liability 8,247,965$ 8,990,936$ 9,834,480$
Sensitivity of Net OPEB Liability as of June 30, 2023
to the Healthcare Cost Trend Rate Assumption
56
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE J – POSTRETIREMENT HEALTHCARE BENEFITS - Continued
8. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended June 30, 2023, the City recognized OPEB expense of $66,694. At June 30,
2023, the City reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred Deferred
Outflows of Inflows
Resources Resources
Differences between expected and actual experience $ 542,650 $ (1,134,468)
Changes of assumptions or other inputs 357,643 (637,639)
Total $ 900,293 $ (1,772,107)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in the City’s OPEB expense as follows:
Year Ended June 30:
2024 $ (229,322)
2025 (372,092)
2026 (401,065)
2027 130,665
2028 -0-
Thereafter -0-
Total $ (871,814)
NOTE K - INTEREST EXPENSE
Interest and handling charges totaling $1,469,315, excluding $175,785 of inter-fund interest, were
incurred by governmental funds during the year ended June 30, 2023. Interest and handling charges
totaling $1,203,211, excluding $11,996 of inter-fund interest, were incurred by proprietary funds
during the year ended June 30, 2023. No interest cost was capitalized as part of the cost of assets
constructed during the period.
The City makes transfers between various funds for routine and normal operating expenses and
for capital asset acquisitions.
57
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE L - INTER-FUND ACTIVITY
A. The following is a summary of inter-fund transfers for the year ended June 30, 2023:
Fund Transfer From Transfer To
General Fund 4,003,297$ 6,186,138$
Park and Recreation Fund 21,800 1,572,056
Convention and Tourism Fund 49,630 -
General Capital Improvements Fund 3,000,000 -
Park & Development Foundation 17,000 -
Public Safety Trust Fund II 1,583,479 3,166,959
Casino Revenue Fund 1,804,485 12,543
Riverfront Region Economic Dev Fund - 204,485
Motor Fuel Tax Fund 1,400,000 -
Park/Storm Water Sales Tax - Cap 4,556,715 -
Fire Sales Tax 3,166,959 -
Parks/Storm Water Sales Tax 1,639,893 -
Capital Improvements Sales Tax 3,750,000 3,400,000
Airport Fund - 5,103,592
Fleet Management Fund - 68,000
Sewer System Improvements 2,647,275 -
Fringe Benefits Fund 29,700 -
Stormwater System Improvements Ph 2 - 846,722
Sewer Fund - 4,272,268
Water Fund - 8,758
Indoor Sportsplex - 59,430
Sporting Complexes - 752,890
Park System Improvements Ph 2 - 2,000,000
Management Information Systems - 392
Golf Fund - 16,000
27,670,233$ 27,670,233$
58
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE L - INTER-FUND ACTIVITY - Continued
B. The following is a summary of inter-fund balances as of June 30, 2023:
Advance to/from other funds:
Advances from Advances to
Casino Revenue Fund $ 2,031,759 $ -0-
Airport Fund -0- 1,322,060
Solid Waste Fund -0- 709,699
$ 2,031,759 $ 2,031,759
The inter-fund balances are a result of advances used to purchase capital assets. The advances are
earning 3% and 3.5% annual interest and are set up to be repaid based on a 20 year amortization.
Final payments are expected on June 1, 2035 and June 1, 2039.
NOTE M – GOVERNMENTAL FUND BALANCES REPORTING
In order to improve the usefulness and understandability of governmental fund balance
information, the Governmental Accounting Standards Board issued Statement No. 54 in which it
classified fund balance into the following categories: Nonspendable, Restricted, Committed,
Assigned, and Unassigned. Definitions of each category and a reconciliation of how the City of
Cape Girardeau reported its Fund Balance follow.
Nonspendable Fund Balance – Includes amounts that cannot be spent because they are either (a)
not in spendable form or (b) legally or contractually required to be maintained intact. The “not in
spendable form” criterion includes items that are not expected to be converted to cash, for example,
inventories and prepaid amounts. It also includes long-term receivables that are not currently
available for expenditure. These financial statements reflect non-spendable fund balances of
$104,365 that are legally restricted to provide for the perpetual care and maintenance of a
mausoleum in the City’s cemetery. Only interest earnings on this amount can be used for
mausoleum maintenance. Prepaid expenses of $137,647 and long-term advance receivables of
$2,031,759 are also reflected as non-spendable fund balances.
Restricted Fund Balance – Includes amounts that can be spent only for specific purposes because
of restrictions by external parties, constitutional provisions, or enabling legislation. These financial
statements include the following restricted fund balances. Fund balances totaling $4,315,857 are
restricted by the City Charter to use during officially declared emergencies. Special revenue fund
balances totaling $39,450,560 are restricted by their enabling legislation. $4,702,810 in capital
project fund balances are restricted as the result of special revenue transfers and unspent bond
proceeds.
59
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE M – GOVERNMENTAL FUND BALANCES REPORTING - continued
Committed Fund Balance – These funds can only be used for specific purposes pursuant to
constraints imposed by formal action of the City’s highest level of decision-making authority (the
City Council). Those amounts cannot be used for any other purpose unless the government
removes or changes the specified use by taking the same type of formal action it employed to
previously commit those amounts. Typically, a resolution by the city council would be needed to
commit a portion of a fund balance for a specific purpose. The fund balance of the Casino Revenue
Fund is committed for various uses identified in a policy approved by the City Council.
Assigned Fund Balance – Amounts that are constrained by the government’s intent to be used for
specific purposes, but are neither restricted nor committed. For all governmental funds other than
the general fund, any remaining positive amounts not classified as nonspendable, restricted, or
committed. For the general fund, amounts can be assigned the intent to be used for a specific
purpose by the city council or a city official authorized by the city council; the amount reported as
assigned should not result in a deficit in unassigned fund balance.
Unassigned Fund Balance – For the general fund, amounts not classified as nonspendable,
restricted, committed, or assigned are included here. For all other governmental funds, it is the
amount expended in excess of resources that are nonspendable, restricted, committed, or assigned.
The general fund is the only fund that should have a positive amount in this classification.
Order of Usage – Unless specifically identified, expenditures will reduce related restricted
balances first, and then related committed balances, next related assigned balances, and finally
unassigned balances. Expenditures for a specifically identified purpose will reduce the specific
classification of fund balance that is identified.
60
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE M – GOVERNMENTAL FUND BALANCES REPORTING – Continued
General Airport Non-Major
Fund Fund Funds Total
Fund balances
Nonspendable:
Prepaid expenses 114,940$ 19,439$ 137,647$ 272,026$
Long-term advance - - 2,031,759 2,031,759
Mausoleum 104,365 - - 104,365
Restricted for:
Emergencies 3,844,442 - 471,415 4,315,857
Undistributed TIF revenue 85,461 - - 85,461
Convention and tourism - - 3,886,259 3,886,259
Community development - - 9,713 9,713
Public safety - - 574,055 574,055
Street projects - - 21,174,174 21,174,174
Sewer system projects - - 6,774,435 6,774,435
Parks and recreation - - 4,348,645 4,348,645
Other capital projects - - 7,300,628 7,300,628
Committed:
Other capital projects - - 2,923,926 2,923,926
Assigned to:
Airport - 3,036,550 - 3,036,550
Parks and recreation - - 1,390,265 1,390,265
Operations and MTCE - - 911,883 911,883
Encumbrances 153,034 - - 153,034
Public safety - - 447,547 447,547
Unassigned:11,165,740 - - 11,165,740
15,467,982$ 3,055,989$ 52,382,351$ 70,906,322$
NOTE N - PROPRIETARY FUNDS RESTRICTED NET ASSETS AND RESTRICTED
CASH EQUIVALENTS AND INVESTMENT
At June 30, 2023, net position restricted for depreciation and replacement was $150,000 for the
City’s Water Fund, and net position restricted for emergencies were $740,132, $932,859,
$787,619, $101,864, $141,000 and $161,760 for the City’s Sewer, Water, Solid Waste, Golf
Course, Indoor Sporting Complex, and Sporting Complex, respectively.
At June 30, 2023, the City’s Sewer Fund had restricted cash equivalents in sinking reserve funds
for Revenue Bonds in the amount of $4,333,310.
61
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE O - LANDFILL CLOSURE AND POSTCLOSURE CARE COST
State and federal laws and regulations require the City to place a final cover on its landfill when
closed and perform certain maintenance and monitoring functions at the landfill site for thirty years
after closure. The City closed its landfill in the fiscal year ending June 30, 1994, and an expense
provision and related liability were recognized at that time based on the future closure and post
closure care costs that were estimated to be incurred near or after the date the landfill no longer
accepted waste. The entire amount of the estimated total costs for landfill closure and post closure
care costs was recognized in prior years since the recognition is based on landfill capacity used to
date, and the landfill was filled to capacity in prior years. The estimated total future liability for
landfill post closure care costs is $3,300 as of June 30, 2023, which is based on the amount that
would be paid if all equipment, facilities, and services required to close, monitor, and maintain the
landfill were acquired as of June 30, 2023. However, the actual cost of closure and post closure
care may be higher due to inflation, changes in technology, or changes in landfill laws and
regulations.
The City has used the option of a Contract of Obligation as the financial assurance instrument for
the landfill. The City issued bonds in October 1994 from which the proceeds were used to pay the
closure costs.
NOTE P - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; natural disasters; cyber-attacks; and employee health benefits. These
risks, with the exception of those discussed in the following paragraphs, are covered by
commercial insurance. Settled claims have not exceeded this commercial coverage in any of the
past fifteen fiscal years.
The City’s insurance coverage is as follows:
Commercial general liability, law enforcement liability, public officials errors and omissions, and
employment-related practices liability is carried by Sunstar Insurance Group – Producer Sunstar
Insurance Group, LLC DBA W. E. Walker Lakenan.
Cyber Risk liability (Risk Manager PLUS+) coverage is carried by The Travelers
Companies/Bond & Specialty Insurance – Producer Sunstar Insurance Group, LLC DBA W. E.
Walker Lakenan.
62
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE P - RISK MANAGEMENT – Continued
Vehicle loss and accident liability is carried by Sunstar Insurance Group – Producer Sunstar
Insurance Group, LLC DBA W. E. Walker Lakenan.
Airport liability is carried by National Union Fire Insurance Company - Producer EBCO Aviation
Underwriters.
Property insurance is carried by Chubb Group of Insurance Companies/Federal Insurance
Company – Producer Sunstar Insurance Group, LLC DBA W. E. Walker Lakenan.
Equipment coverage is carried by Travelers Property Casualty Company – Producer Sunstar
Insurance Group, LLC DBA W. E. Walker Lakenan.
The City has established self-insurance plans for employees’ health insurance and workers’
compensation. Both of these are accounted for using internal service funds. Under each plan, the
City is substantially self-insured and uses an administrator to handle claims management.
The City provided health coverage to its employees through a self -insured plan administered by
Anthem Blue Cross Blue Shield of Missouri. Anthem had an “A” rating by A.M. Best. Under the
plans, the City paid the administrator a monthly premium for claims administration, cost
management, and specific and aggregate stop loss coverage. The City reimbursed the administrator
for claims paid up to the specific stop loss amount of $150,000 per employee during each calendar
year included in the current fiscal year. The City also reimbursed the administrator for total claims
paid up to the annual aggregate stop loss amounts (125% of estimated claims) of approximately
$4,000,000 and $4,000,000 for years ending June 30, 2022 and June 30, 2023, respectively. Rates
were charged by the internal service fund to the other City funds to cover the monthly premium to
the administrator and claims up to 88.0% of the aggregate stop loss amount during the current
fiscal year.
Thomas McGee Group administers the City’s workers’ compensation plan. Under this plan, the
City pays the administrator a per claim fee to administer its claims. All claims are paid directly
by the City. The City has purchased insurance coverage from Midwest Employers that limits the
City’s maximum individual claims liability to $750,000 for USL & H and $750,000 for other
regular employees and per occurrence claims liability to $1,000,000. Rates are charged by the
internal service fund to the other City funds based on rates and experience factors established by
the National Council on Compensation Insurance and City of Cape Girardeau actual claims trends.
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City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE P - RISK MANAGEMENT – Continued
Claims liability is estimated using data supplied by the administrator. The claims activity during
the last five years is summarized as follows:
Health Workers'
Insurance Compensation Total
Balance June 30, 2018 99,000$ 625,500$ 724,500$
Provisions for Incurred Claims 3,696,756 482,643 4,179,399
Payment of Claims (3,466,756) (570,043) (4,036,799)
Balance June 30, 2019 329,000$ 538,100$ 867,100$
Provisions for Incurred Claims 3,501,872 817,620 4,319,492
Payment of Claims (3,696,872) (712,720) (4,409,592)
Balance June 30, 2020 134,000$ 643,000$ 777,000$
Provisions for Incurred Claims 3,471,412 1,325,119 4,796,531
Payment of Claims (3,252,412) (1,219,619) (4,472,031)
Balance June 30, 2021 353,000$ 748,500$ 1,101,500$
Provisions for Incurred Claims 3,575,784 432,228 4,008,012
Payment of Claims (3,574,884) (869,728) (4,444,612)
Balance June 30, 2022 353,900$ 311,000$ 664,900$
Provisions to Incurred Claims 5,021,473 633,235 5,654,708
Payment of Claims (5,084,373) (573,235) (5,657,608)
Balance June 30, 2023 291,000$ 371,000$ 662,000$
CLAIMS LIABILITIES RECONCILIATION
NOTE Q - CONCENTRATION OF CREDIT RISK/BAD DEBT ALLOWANCE
The City has uncollateralized utility accounts receivable generated within a limited geographical
region primarily consisting of its City limits. The City also has taxes, special assessments, and
user fees receivable which are concentrated among its citizens. Some of these items attach as liens
against real and personal property. The maximum accounting loss is the amount shown as utility
charges receivable on the statement of net position.
64
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE Q – CONCENTRATION OF CREDIT RISK/BAD DEBIT ALLOWANCE - continue
At June 30, 2023, utility receivables totaled $2,613,802. On the financial statements, the utility
receivables are shown net of the allowance for doubtful accounts of $87,552. This results in net
utility receivable of $2,526,250. During the year ended June 30, 2023, the allowance was increased
by $21,208 and accounts totaling $107,149 were written off.
NOTE R - COMMITMENTS AND CONTINGENCIES
1. Litigation
Various claims and lawsuits are pending against the City. In the opinion of City management,
the potential loss on all claims and lawsuits will not be significant to the City’s financial
statements.
2. Grant Audit
The City receives Federal and State Grants for specific purposes that are subject to review and
audit by various Federal and State agencies. Such audits could result in a request for
reimbursement by any of the Federal and State agencies for expenditures disallowed under the
terms and conditions of the appropriate agency. In the opinion of City management, such
disallowances, if any, will not be significant.
3. Construction Commitments
As of June 30, 2023, the City had construction commitments outstanding of $10,086,540. The
construction commitments represent incomplete portions of contracts entered into to construct
various street projects, municipal pool renovation, water and sewer projects, airport terminal
construction, and Capaha renovations. These contracts are expected to be completed within the
next fiscal year.
4. Encumbrances
As of June 30, 2023, the City had encumbrances outstanding of $3,782,255.
NOTE S – PRIOR PERIOD ADJUSTMENTS
The net position of the governmental activities was increased by $261,815, while the business
activities was decreased by $350,984, as of June 30, 2023, from transactions that occurred in
previous years. Grant revenue, which was previously thought to be recoverable, was not received
for the Airport Improvement Grant, decreasing fund balance by $58,178. A lease receivable and
deferred inflows relating to leases under GASB Statement No. 87 were recorded in error on the
fund financial statements for the General Fund and Airport Fund resulting in increases in fund
balances of $41,409 and $32,939, respectively. An adjustment was needed to record leases under
the GASB Statement No. 87 that should have been included in the prior year when the new
standard was implemented. This adjustment resulted in an increase of $55,145 in net position of
65
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE S – PRIOR PERIOD ADJUSTMENTS - continued
the governmental activities. The Refunding Special Obligation Bond was recorded as debt of the
governmental activities but should have been allocated between the governmental activities and
business-type activities as it refinanced the Special Obligation Bonds, Series 2015 outstanding in
both. Also, the unamortized premium and accrued interest of the Special Obligation Bond Series
2015 was not written off when the debt was retired. These errors resulted in the net position of the
governmental activities to increase by $190,500 and the net position of the business-type activities
to decrease by $65,877. Adjustments were needed to correct the recording of construction in
progress to the correct funds and write off projects that were abandoned resulting in a decrease to
the Sewer Fund and Water Fund net position of $184,061 and $101,046, respectively.
NOTE T - TAX ABATEMENTS
The City has entered into real property tax abatement agreements with developers pursuant to
provisions of Chapter 353 of the Revised Statutes of Missouri. During the first 10 years of
abatement, 100% of the incremental increase in real property taxes on the land and 100% of the
real property taxes on all improvements are abated. During the next 15 years, between 50% and
100% of the incremental real property taxes on all land and all land improvements are abated.
During the current fiscal year $635 in real property taxes were abated related to provisions of
Chapter 353. The abatements related to a project to convert an abandoned retail building into an
office building for a national call center. These abatements will expire in 2032.
The City has established one Redevelopment Project Area in the Cape Downtown Tax Increment
Financing District (TIF) according to Missouri TIF laws. During the current year $1 2,708 in real
property taxes were abated related to provisions of these laws. Abatement of City real property
taxes accounted for $5,261 of this amount. Payments in lieu of taxes are made to the City by
owners of the abated properties based on the abated assessed values for all taxing entities included
in the TIF. These deposits are kept in a special allocation fund to be used to reimburse developers
for approved redevelopment projects within the TIF.
NOTE U - CONTINGENCY
1. In July 2007, the City entered into a development agreement with Greater Missouri
Builders, Inc. (GMB) to reimburse them for costs associated with the Town Plaza
Redevelopment Project. In conjunction with this agreement, the City established the Town
Plaza Community Improvement District (CID) and determined the project area to be
blighted pursuant to Chapter 353 of the Missouri Revised Statutes.
66
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE U – CONTINGENCY - continued
This project involved the conversion of the former Sears facility into a call center for
National Asset Recover Services (NARS) and other various improvements, such as facade
improvements, parking facilities, roof reconstruction, and HVAC enhancements. Total
reimbursements to GMB for redevelopment costs were limited to $3.6 million plus 7.5%
interest. These reimbursements will be made from incremental County and City sales tax
revenues, an additional CID sales tax, and real estate tax abatements. Reimbursements from
incremental County and City sales tax revenue will be limited to $1.2 of the $3.6 million
total.
Incremental County and City sales tax revenue was defined as the difference in future tax
revenues from the City’s 1% general sales tax and .5% capital improvement sales tax and
half the County’s .5% general sales tax and the revenues from these taxes from the project
area in calendar year 2006. The CID implemented a 1% sales tax. Improvements to the
redevelopment project will receive 100% real estate tax abatement for the first 10 years
and 50% real estate tax abatement for the next 15 years. The current Sears facility will
receive 50% real estate tax abatement for 25 years. Based on 2006 assessed values the
abatement of City taxes on the unimproved Sears facility would be $628.
Beginning in year six of the agreement, 50% of the gross rentals from the NARS site will
be used to supplement the incremental sales tax revenues. Reimbursements from
incremental sales tax revenues expire with repayment of the amount to be paid by
incremental sales tax or 20 years, whichever comes first.
This project was completed at a cost of $3,203,308. Reimbursement from incremental
County and City sales tax revenue is limited to $1,164,839. The City and the County are
obligated to make quarterly payments as may lawfully be made from funds budgeted and
appropriated for that purpose by the City and County.
During the fiscal year ended June 30, 2023, the City incurred payments of $94,112 under
the development agreement. This amount is included in the Development Services
expenses on the statement of activities.
2. In June 2004, the City of Cape Girardeau and Cape Girardeau County entered into a
development agreement with a local real estate developer. Under the agreement, the local
developer agreed to pay for certain public improvements incurred in conjunction with the
development of a 60 acre retail development, and the City and County agreed to reimburse
the local business for the $2,998,434 cost of these improvements plus 4% interest with
quarterly payments from available net sales tax revenue generated from any businesses
operations located in the development.
67
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE U - CONTINGENCY – Continued
Available revenue is defined by the agreement as all the net sales tax revenue generated by
two .25% City capital improvement sales taxes and the .50% City transportation sales tax
and half of the net sales tax revenue generated by a .50% County sales tax. All City sales
taxes have expiration dates that could occur before the total costs of the improvements are
reimbursed to the developer. The County sales tax has no expiration date. No provision is
made to replace revenues from the City sales taxes that expire if they are not extended. The
development agreement remains in effect until the total cost of the public improvements is
reimbursed to the developer.
In October 2012, the City of Cape Girardeau and Cape Girardeau County entered into an
amendment to the original development agreement. Under the agreement, the local
developer agreed to pay for additional public improvements incurred in conjunction with
the development of the 60 acre retail development, and the City and County agreed to
reimburse the local business for the $2,024,360 cost of these improvements from available
net sales tax revenue generated from an Academy Sports retail store. Academy Sports
began operation in May 2013.
The City and County are required by the development agreement to reimburse the
developer for the additional public improvement costs related to Academy Sports after the
original development costs have been reimbursed with quarterly payments from available
revenue. Available revenue is defined by the agreement as all the net sales tax revenue
generated by Academy Sports at that location on sales that exceed an inflation adjusted
$2.5 million annually from two .25% City capital improvement sales taxes and half of the
.50% City transportation sales tax and half of the net sales tax revenue generated by a .50%
County sales tax. All City sales taxes have expiration dates that could occur before the
total costs of the improvements are reimbursed to the developer. The County sales tax has
no expiration date. No provision is made to replace revenues from the City sales taxes that
expire if they are not extended. The development agreement remains in effect until the total
cost of the additional public improvements is reimbursed to the developer or fifteen years
from the beginning of repayments to the developer for costs related to the additional public
improvements.
The City and the County are obligated only to make quarterly payments as may lawfully
be made from funds budgeted and appropriated for that purpose by the City and County.
During the fiscal year ended June 30, 2023 the City incurred payments of $164,802 under
the development agreement. This amount is included in the Development Services
expenses on the statement of activities.
68
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE U - CONTINGENCY – Continued
3. In May 2011, the City of Cape Girardeau entered into a development agreement with a
local real estate developer. Under this agreement, the local developer agreed to pay for
certain public improvements incurred in conjunction with the development of a Menards
Home Improvement Store site and other adjacent retail development sites, and the City
agreed to reimburse the local developer for the cost of these improvements from available
net sales tax revenue generated from the Menards Home Improvement operations and
operations of other similar retail stores in the City that exceeded a baseline amount
established in the development agreement.
The local developer has completed all public improvements at a cost of $2,943,843. The
City is required by the development agreement to reimburse the developer for these costs
from available revenues. Available revenue is defined by the agreement as all the net sales
tax revenue generated by two .25% City capital improvement sales taxes and the .50% City
transportation sales tax that exceed a baseline amount. The transportation sales tax has an
expiration date that occurs during the contract period. No provision is made to replace
revenues from the City sales taxes that expire if they are not extended. The development
agreement expires 15 years after the beginning of the Menards Home Improvement
operations.
The City is obligated only to make quarterly payments as may lawfully be made from funds
budgeted and appropriated for that purpose by the City. During the fiscal year ended June
30, 2023, the City incurred $130,229 under the development agreement. This amount is
included in the Development Services expenses on the statement of activities. The
agreement was paid in full during the year ended June 30, 2023.
4. In November 2015, the City of Cape Girardeau entered into a development agreement with
Drury Southwest, Inc. (the “Company”). Under this agreement, the Company agreed to
construct a 168-room hotel and adjoining restaurant with an approximately 20,000 square
foot conference center. In recognition of the significant economic benefits to the City, once
the facility became operational, the City agreed to reimburse the Company for part of the
cost of constructing the conference center from available net sales tax revenues generated
from the operations of the hotel, restaurant, and conference center.
As of October 3, 2017, the Company had substantially completed the project, having
incurred $6,938,689 in costs under the development agreement. The City is required by the
agreement to reimburse the developer for these costs, up to a maximum of $6,250,000,
from available revenues. Available revenue is defined by the agreement as all the net sales
tax revenue generated by the 1% general sales tax and two .25% capital improvement sales
taxes relating to the operations of the hotel, restaurant, and conference center. One of the
capital improvement sales taxes has an expiration date that could occur before the total
costs of the improvements are reimbursed to the developer. No provision is made to replace
69
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
NOTE U - CONTINGENCY – Continued
revenues from the City sales taxes that expire if they are not extended. The development
agreement expires 20 years from December 31, 2017, or as soon as the City has completely
reimbursed the Company for the total of reimbursable costs, if that happens first.
The City is obligated only to make quarterly payments as may lawfully be made from funds
budgeted and appropriated for that purpose by the City. During the fiscal year ended June
30, 2023, the City incurred $103,825 under the development agreement.
NOTE V – SUBSEQUENT EVENT
On September 5, 2023, the City awarded a bid for the removal and disposal of the roofing system
of the airport terminal in the amount of $176,120.
REQUIRED SUPPLEMENTAL INFORMATION
Variance with
Original Final Actual Final Budget
REVENUES:
Taxes 20,594,469$ 20,594,556$ 24,225,887$ 3,631,331$
Licenses and Permits 1,813,905 1,813,905 2,080,455 266,550
Intergovernmental 639,000 639,000 940,696 301,696
Charges for Services 1,011,263 984,263 312,539 (671,724)
Internal Charges 1,145,190 1,066,065 1,021,682 (44,383)
Fines and Forfeits 619,000 619,000 244,003 (374,997)
Miscellaneous 685,175 685,175 390,225 (294,950)
Special Assessments 14,285 14,285 60,599 46,314
Investment Revenue 85,030 85,030 624,458 539,428
TOTAL REVENUES 26,607,317$ 26,501,279$ 29,900,544$ 3,399,265$
EXPENDITURES:
Current:
Administrative Services 3,530,704$ 7,031,382$ 6,571,180$ 460,202$
Development Services 3,008,389 3,037,165 2,813,574 223,591
Parks and Recreation 1,892,457 1,874,147 1,605,722 268,425
Public Safety 17,870,924 13,427,706 16,952,553 (3,524,847)
Public Works 2,825,212 2,849,559 2,718,373 131,186
Capital Outlay:
Administrative Services - 139,537 76,151 63,386
Development Services - - 9,042 (9,042)
Parks and Recreation - 160,650 49,683 110,967
Public Safety - 746,462 599,693 146,769
TOTAL EXPENDITURES 29,127,686$ 29,266,608$ 31,395,971$ (2,129,363)$
REVENUES OVER (UNDER)
EXPENDITURES (2,520,369)$ (2,765,329)$ (1,495,427)$ 5,528,628$
OTHER FINANCING SOURCES (USES):
Compensation for Damages -$ -$ 7,210$ 7,210$
Settlements - - 49,946 49,946
Asset Disposition - - 57,744 57,744
Contributed Capital - - 500 500
Transfers In 5,763,613 6,306,263 6,186,138 (120,125)
Transfers Out (3,593,813) (3,606,356) (4,003,297) (396,941)
TOTAL OTHER FINANCING SOURCES
(USES)2,169,800$ 2,699,907$ 2,298,241$ (401,666)$
TOTAL REVENUES OVER (UNDER)
EXPENDITURES (350,569)$ (65,422)$ 802,814$ 5,126,962$
FUND BALANCE, July 1, 2022 14,549,801 14,549,801 14,549,801 -
FUND BALANCE, June 30, 2023 14,199,232$ 14,484,379$ 15,352,615$ 5,126,962$
Budgeted Amounts
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - GENERAL FUND
Year Ended June 30, 2023
See Independent Auditors' Report.
70
Variance with
Original Final Actual Final Budget
REVENUES:
Intergovernmental 16,467,000$ 16,467,000$ 6,543,847$ (9,923,153)$
Charges for Services 534,242 534,242 489,857 (44,385)
Miscellaneous 318,753 5,000 387,406 382,406
Investment Revenue 5,000 318,753 251,526 (67,227)
TOTAL REVENUES 17,324,995$ 17,324,995$ 7,672,636$ (9,652,359)$
EXPENDITURES:
Current:
Development Services 1,682,662$ 1,792,782$ 1,903,304$ (110,522)$
Capital Outlay:
Development Services 15,700,000 17,502,270 6,623,139 10,879,131
TOTAL EXPENDITURES 17,382,662$ 19,295,052$ 8,526,443$ 10,768,609$
REVENUES OVER (UNDER)
EXPENDITURES (57,667)$ (1,970,057)$ (853,807)$ (20,420,968)$
OTHER FINANCING SOURCES (USES):
Advance Repayment (85,925)$ (85,925)$ (85,925)$ -$
Transfers In 143,592 1,343,592 5,103,592 3,760,000
TOTAL OTHER FINANCING SOURCES
(USES)57,667$ 1,257,667$ 5,017,667$ 3,760,000$
TOTAL REVENUES OVER (UNDER)
EXPENDITURES -$ (712,390)$ 4,163,860$ (16,660,968)$
FUND BALANCE, July 1, 2022 (1,100,999) (1,100,999) 244,618 -
PRIOR PERIOD ADJUSTMENT - - (25,239) (25,239)
FUND BALANCE, June 30, 2023 (1,100,999)$ (1,813,389)$ 4,383,239$ (16,686,207)$
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - AIRPORT FUND
Year Ended June 30, 2023
Budgeted Amounts
See Independent Auditors' Report.
71
72
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2023
BUDGETS AND BUDGETARY ACCOUNTING
The City adopts annual operating budgets for all funds except Storm Water Projects from Park /
Storm Water Sales Tax Fund, Park Improvement Projects from Park / Storm Water Sales Tax
Fund, and Park Improvement Projects from Park/Storm Water Sales Tax Fund Phase 2 - which
have project length budgets - and the Cape Girardeau Municipal Development Foundation, and
the Cape Girardeau Parks Development Foundation, whose main purposes are to solicit and collect
donations.
The City follows these procedures in establishing the budgetary data reflected in the financial
statements.
1. The City Manager submits to the City Council a proposed operating budget for the
fiscal year ending the following June 30th at the first meeting of June each year. The
operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to July 1, the budget is legally enacted through passage of an ordinance.
4. The City Manager is authorized to transfer budgeted amounts between programs within
any department; however, any revisions that alter the total appropriations of any
department must be approved by the City Council. Departments may not legally exceed
their appropriations without approval from the City Council. Appropriations expire at
the end of the year; however, outstanding encumbrances at the end of the year are
honored by the City.
5. Formal budgetary integration is employed as a management control device during the
year for all funds.
6. Budgets for all funds are adopted on a budgetary basis.
7. If, during the fiscal year, the City Manager certifies there are additional revenues to
appropriate, unencumbered appropriation balances within a department, or there is an
emergency situation, the City Council may amend the initial budget by ordinance. The
initial budget was adopted by the City Council on July 5, 2022 and amended on July
18, 2022; September 9, 2022; June 5, 2023; and September 18, 2023. The initial budget
and final amended budget are both reflected in the financial statements.
73
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2023
BUDGETS AND BUDGETARY ACCOUNTING - Continued
The statement of revenues, expenditures, and changes in fund balances - governmental funds
reports revenues and expenditures on the modified accrual basis of accounting in accordance with
GAAP. The statement of revenues, expenditures, and changes in fund balances - budget and actual
(budget basis) for all governmental fund types is prepared on a budgetary basis which includes
encumbrances as expenditures.
The following reconciliation adjusts GAAP basis to budget basis:
General Fund Airport Fund
GAAP Basis Net Income 680,592$ 4,182,227
Increase due to:
Prior Year-End Encumbrances:
Administrative Services 37,131 -
Development Services 500 288,260
Parks & Recreation 5,363 -
Public Safety 195,417 -
Public Works 47,154 -
Capital Outlay - 27,060
Encumbrance Revenue (129,838) -
Adjust investments due to Market 25,821 1,089
181,548$ 316,409$
Decrease due to:
Current Year-End Encumbrances
Administrative Services 6,140 -
Development Services 500 440
Parks & Recreation 1,965 -
Public Safety - -
Public Works 42,946 -
Capital Outlay 101,933 318,245
Advance Repayment - 85,925
Encumbrance Revenue (81,701) (61,265)
Adjust investments due to Market (12,457) (8,569)
59,326$ 334,776
Budget Basis Net Income 802,814$ 4,163,860$
74
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2023
BUDGETS AND BUDGETARY ACCOUNTING - Continued
The individual proprietary fund schedules of comparing budget to actual is reported on a budgetary
basis that uses the modified accrual basis of accounting with the exception of encumbrances.
Encumbrances are reported as expenses in the year of encumbrance.
2023 2022 2021 2020 2019 2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 928,436$ 933,765$ 1,003,826$ 1,013,062$ 863,072$ 847,662$ 813,616$ 795,771$ 768,458$
Interest on the Pension Liability 3,298,026 3,188,809 3,328,657 3,125,720 2,770,920 2,668,902 2,567,279 2,346,499 2,240,283
Changes of Benefit Terms 2,779,169.00 - - - 3,061,598 - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability 1,093,970 (313,157) (1,736,406) 517,894 (113,254) (568,794) (678,078) (183,850) (261,952)
Changes of Assumptions - - (849,035) - - - - 1,388,735 -
Benefit Payments, Including Refunds of Employee Contributions (2,298,536) (2,196,315) (1,948,702) (1,760,611) (1,763,786) (1,340,034) (1,296,403) (1,324,473) (1,266,841)
Net Change in Total Pension Liability 5,801,065 1,613,102 (201,660) 2,896,065 4,818,550 1,607,736 1,406,414 3,022,682 1,479,948
Total Pension Liability - Beginning 47,788,118 46,175,016 46,376,676 43,480,611 38,662,061 37,054,325 35,647,911 32,625,229 31,145,281
Total Pension Liability - Ending (A)53,589,183$ 47,788,118$ 46,175,016$ 46,376,676$ 43,480,611$ 38,662,061$ 37,054,325$ 35,647,911$ 32,625,229$
Plan Fiduciary Net Position
Contributions - Employer 3,255,106$ 929,906$ 888,369$ 864,919$ 3,608,999$ 847,162$ 745,001$ 820,228$ 1,953,089$
Contributions - Employees - - - - - - 16,008 - -
Net Investment Income 2,103,906 43,036 13,278,050 637,692 3,002,641 4,823,411 4,214,232 (82,162) 684,825
Benefit Payments, Including Refunds of Employee Contributions (2,298,536) (2,196,315) (1,948,702) (1,760,611) (1,763,786) (1,340,034) (1,296,403) (1,324,473) (1,266,841)
Pension Plan Administrative Expense (69,871) (51,934) (48,802) (64,681) (58,089) (40,041) (38,351) (37,018) (40,731)
Other (Net Transfers)(1,456,481) (740,238) (270,930) 32,102 (122,011) (225,107) (15,167) (298,285) 267,961
Net Change in Plan Fiduciary Net Position 1,534,124 (2,015,545) 11,897,985 (290,579) 4,667,754 4,065,391 3,625,320 (921,710) 1,598,303
Plan Fiduciary Net Position - Beginning 57,893,626 59,909,171 48,011,186 48,301,765 43,634,011 39,568,620 35,943,300 36,865,010 35,266,707
Plan Fiduciary Net Position - Ending (B)59,427,750$ 57,893,626$ 59,909,171$ 48,011,186$ 48,301,765$ 43,634,011$ 39,568,620$ 35,943,300$ 36,865,010$
Net Pension Liability - Ending (A) - (B)(5,838,567) (10,105,508) (13,734,155) (1,634,510) (4,821,154) (4,971,950) (2,514,295) (295,389) (4,239,781)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 110.90%121.15%129.74%103.52%111.09%112.86%106.79%100.83%113.00%
Covered Valuation Payroll 9,430,171$ 8,977,444$ 9,337,017$ 10,105,920$ 9,908,724$ 9,841,879$ 9,707,798$ 9,109,297$ 8,987,241$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -61.91%-112.57%-147.09%-16.17%-48.66%-50.52%-25.90%-3.24%-47.18%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, information is presented for those years for which information is available.
CITY OF CAPE GIRARDEAU, MISSOURI
SUPPLEMENTARY INFORMATION
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
GENERAL DIVISION
June 30, 2023
75
2023 2022 2021 2020 2019 2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 382,120$ 404,842$ 439,563$ 418,343$ 370,763$ 367,842$ 345,371$ 309,133$ 303,651$
Interest on the Pension Liability 1,670,148 1,594,959 1,683,903 1,593,730 1,425,037 1,377,421 1,327,202 1,248,307 1,182,926
Changes of Benefit Terms 1,197,832 - - - 839,984 - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability 1,878,133 294,313 (1,126,893) 343,900 767,339 (5,046) 21,040 (83,909) 274,477
Changes of Assumptions - - (262,033) - - - - 481,968 -
Benefit Payments, Including Refunds of Employee Contributions (1,235,673) (1,182,846) (1,134,760) (1,110,912) (1,088,863) (1,081,050) (945,268) (827,008) (895,666)
Net Change in Total Pension Liability 3,892,560 1,111,268 (400,220) 1,245,061 2,314,260 659,167 748,345 1,128,491 865,388
Total Pension Liability - Beginning 24,278,813 23,167,545 23,567,765 22,322,704 20,008,444 19,349,277 18,600,932 17,472,441 16,607,053
Total Pension Liability - Ending (A)28,171,373$ 24,278,813$ 23,167,545$ 23,567,765$ 22,322,704$ 20,008,444$ 19,349,277$ 18,600,932$ 17,472,441$
Plan Fiduciary Net Position
Contributions - Employer 1,321,768$ 471,871$ 481,997$ 449,883$ 1,359,472$ 392,375$ 366,721$ 337,743$ 1,043,262$
Contributions - Employees - - - - - - - - -
Net Investment Income 997,027 21,758 6,219,863 300,296 1,519,462 2,382,243 2,267,369 (46,280) 349,748
Benefit Payments, Including Refunds of Employee Contributions (1,235,673) (1,182,846) (1,134,760) (1,110,912) (1,088,863) (1,081,050) (945,268) (827,008) (895,666)
Pension Plan Administrative Expense (24,050) (16,241) (16,334) (22,319) (19,439) (13,830) (13,148) (12,366) (12,862)
Other (Net Transfers)55,480 27,847 (12,112) 84,957 91,515 (42,272) 156,567 50,565 (106,927)
Net Change in Plan Fiduciary Net Position 1,114,552 (677,611) 5,538,654 (298,095) 1,862,147 1,637,466 1,832,241 (497,346) 377,555
Plan Fiduciary Net Position - Beginning 28,371,185 29,048,796 23,510,142 23,808,237 21,946,090 20,308,624 18,476,383 18,973,729 18,596,174
Plan Fiduciary Net Position - Ending (B)29,485,737$ 28,371,185$ 29,048,796$ 23,510,142$ 23,808,237$ 21,946,090$ 20,308,624$ 18,476,383$ 18,973,729$
Net Pension Liability - Ending (A) - (B)(1,314,364) (4,092,372) (5,881,251) 57,623 (1,485,533) (1,937,646) (959,347) 124,549 (1,501,288)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 104.67%116.86%125.39%99.76%106.65%109.68%104.96%99.33%108.59%
Covered Valuation Payroll 3,976,695$ 3,237,682$ 3,836,832$ 4,179,275$ 3,776,550$ 3,943,991$ 3,818,933$ 3,536,454$ 3,223,790$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -33.05%-126.40%-153.28%1.38%-39.34%-49.13%-25.12%3.52%-46.57%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, information is presented for those years for which information is available.
CITY OF CAPE GIRARDEAU, MISSOURI
SUPPLEMENTARY INFORMATION
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
POLICE DIVISION
June 30, 2023
76
2023 2022 2021 2020 2019 2018 2017 2016 2015
Fiscal Year Ended June 30,
Total Pension Liability
Service Costs 512,816$ 485,904$ 481,270$ 451,444$ 397,573$ 401,292$ 388,806$ 375,784$ 370,414$
Interest on the Pension Liability 1,763,429 1,685,982 1,741,225 1,662,942 1,505,476 1,472,645 1,452,993 1,336,826 1,319,931
Changes of Benefit Terms 815,997.00 - - - 951,134 - - - -
Differences Between Expected and Actual Experience
of the Total Pension Liability 1,150,659 610,970 (58,849) 466,159 765,218 (152,061) (515,001) 461,181 (356,529)
Changes of Assumptions - - (449,014) - - - - 508,788 -
Benefit Payments, Including Refunds of Employee Contributions (1,595,151) (1,781,092) (1,519,412) (1,511,600) (1,437,533) (1,102,750) (1,022,379) (1,148,773) (1,059,610)
Net Change in Total Pension Liability 2,647,750 1,001,764 195,220 1,068,945 2,181,868 619,126 304,419 1,533,806 274,206
Total Pension Liability - Beginning 25,723,864 24,722,100 24,526,880 23,457,935 21,276,067 20,656,941 20,352,522 18,818,716 18,544,510
Total Pension Liability - Ending (A)28,371,614$ 25,723,864$ 24,722,100$ 24,526,880$ 23,457,935$ 21,276,067$ 20,656,941$ 20,352,522$ 18,818,716$
Plan Fiduciary Net Position
Contributions - Employer 1,307,758$ 475,309$ 441,121$ 369,502$ 1,334,300$ 370,929$ 326,044$ 375,209$ 765,345$
Contributions - Employees - - - - - - - - -
Net Investment Income 1,032,172 30,087 6,873,082 335,978 1,640,175 2,629,862 2,374,115 (40,593) 415,318
Benefit Payments, Including Refunds of Employee Contributions (1,595,151) (1,781,092) (1,519,412) (1,511,600) (1,437,533) (1,102,750) (1,022,379) (1,148,773) (1,059,610)
Pension Plan Administrative Expense (21,462) (15,025) (13,864) (17,476) (14,968) (10,585) (10,113) (9,925) (10,625)
Other (Net Transfers)(294,573) 625,944 47,327 144,451 (101,158) (28,894) 100,165 18,256 (25,522)
Net Change in Plan Fiduciary Net Position 428,744 (664,777) 5,828,254 (679,145) 1,420,816 1,858,562 1,767,832 (805,826) 84,906
Plan Fiduciary Net Position - Beginning 30,142,889 30,807,666 24,979,412 25,658,557 24,237,741 22,379,179 20,611,347 21,417,173 21,332,267
Plan Fiduciary Net Position - Ending (B)30,571,633$ 30,142,889$ 30,807,666$ 24,979,412$ 25,658,557$ 24,237,741$ 22,379,179$ 20,611,347$ 21,417,173$
Net Pension Liability - Ending (A) - (B)(2,200,019) (4,419,025) (6,085,566) (452,532) (2,200,622) (2,961,674) (1,722,238) (258,825) (2,598,457)
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 107.75%117.18%124.62%101.85%109.38%113.92%108.34%101.27%113.81%
Covered Valuation Payroll 3,943,799$ 3,467,953$ 3,432,689$ 3,442,123$ 3,211,902$ 3,290,770$ 3,283,135$ 3,099,147$ 3,017,659$
Net Pension Liability as a Percentage
of Covered Valuation Payroll -55.78%-127.42%-177.28%-13.15%-68.51%-90.00%-52.46%-8.35%-86.11%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year
trend is compiled, information is presented for those years for which information is available.
CITY OF CAPE GIRARDEAU, MISSOURI
SUPPLEMENTARY INFORMATION
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
FIRE DIVISION
June 30, 2023
77
June 30, 2023
Fiscal Actual Contribution
Year Actuarial Contribution Covered as a Percentage
Ended Determined Actual Deficiency Valuation of Covered
June 30,Contribution Contribution (Excess)Payroll Valuation Payroll
2023 2,231,644$ 2,213,684$ 17,960$ 18,544,042$ 11.94%
2022 1,945,508 1,874,208 71,300 16,374,625 11.45%
2021 1,873,332 1,812,073 61,259 17,166,508 10.56%
2020 1,683,841 1,683,841 - 17,188,695 9.80%
2019 1,728,666 1,728,666 - 17,300,564 9.99%
2018 1,644,496 1,610,466 34,030 16,990,644 9.48%
2017 1,437,766 1,437,766 - 16,749,343 8.58%
2016 1,533,180 1,533,180 - 16,040,522 9.56%
2015 1,741,546 1,741,546 - 15,253,527 11.42%
2014 1,743,286 1,662,520 80,766 14,797,136 11.24%
Notes to Schedule:
Valuation Date:February 28, 2023
Notes The roll-forward of total pension liability from February 28, 2023 to
June 30, 2023 reflects expected service cost and interest reduced by
actual benefit payments.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method:Entry Age Normal and Modified Terminal Funding
Amortization Method:A level percentage of payroll amortization method is used to
amortize the UAAL over a closed period of years. If the UAAL
(excluding the UAAL associated with benefit changes) is negative,
then this amount is amortized of the greater of (i) the remaining
initial amortization period or (ii) 15 years.
Remaining Amortization Period:Multiple bases from 15 to 159 years
Asset Valuation Method:5-year smoothed market, 20% corridor
Inflation:2.75% wage inflation, 2.25% price inflation
Salary Increases:2.75% to 6.75%, including wage inflation
Investment Rate of Return:7.00%, net of investment expenses
Retirement Age:Experience-based table of rates that are specific to the type of
eligibility condition.
Mortality:The healthy retiree mortality tables, for post-retirement mortality,
used in evaluating allowances to be paid were 115% of the PubG-
2010 Retiree Mortality Table for males and females. The disabled
retiree mortality tables, for post-retirement mortality, used in
evaluating allowances to be paid were 115% of the PubNS-2010
Disabled Retiree Mortality Table for males and females. The pre-
retirement mortality tables used were 75% of the PubG-2010
Employee Mortality Table for males and females of General groups
and 75% of the PubS-2010 Employee Mortality Table for males and
females of Police, Fire and Public Safety groups.
Mortality rates for a particular calendar year are determined by
applying the MP-2020 mortality improvement scale to the above
described tables.
Other Information:None
CITY OF CAPE GIRARDEAU, MISSOURI
SUPPLEMENTARY INFORMATION
MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM
SCHEDULE OF EMPLOYER CONTRIBUTIONS
78
2023 2022 2021 2020 2019 2018
Calendar Year Ended June 30,
Total OPEB Liability
Service Costs 152,219$ 309,892$ 254,489$ 258,793$ 251,092$ 303,952$
Interest on Total OPEB Liability 341,966 248,554 295,897 365,681 428,525 407,566
Effect of Economic/Demographic Gains or Losses 678,313 (1,629,235) (34,266) (231,761) (961,604) (519,247)
Effect of Assumptions Changes or Inputs (24,972) (1,029,435) 382,609 1,023,004 271,656 158,158
Benefit Payments (723,529) (740,913) (715,552) (694,578) (609,858) (608,774)
Net Change in Total OPEB Liability 423,997 (2,841,137) 183,177 721,139 (620,189) (258,345)
Total OPEB Liability - Beginning 8,566,939 11,408,076 11,224,899 10,503,760 11,123,949 11,382,294
Total OPEB Liability - Ending 8,990,936$ 8,566,939$ 11,408,076$ 11,224,899$ 10,503,760$ 11,123,949$
Covered Employee Payroll 6,880,663 6,723,215 7,465,766 7,230,766 9,369,121 9,074,209
Total OPEB Liability as a Percentage
of Covered Employee Payroll 130.67%127.42%152.81%155.24%112.11%122.59%
Notes to the Schedule:
This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of
prior years are not required, and if prior years are not reported in accordance with the current GASB standards,
they should not be reported.
CITY OF CAPE GIRARDEAU, MISSOURI
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
June 30, 2023
79
SUPPLEMENTAL INFORMATION
General Park Riverfront
Capital Parks and Convention Downtown A.C. Brase Development Casino Region Economic Community Motor
Improvements Recreation Health and Tourism Business Public Safety Foundation Foundation Public Safety Revenue Development Development Fuel Tax
Fund Fund Fund Fund District Fund Trust Fund Fund Fund Trust Fund II Fund Fund Grant Fund Fund
CURRENT ASSETS:
Pooled Cash and Investments 1,362,642$ 1,072,985$ 457,560$ 3,589,375$ 164,154$ -55,947$ 744,327$ 685,222$ 2,760,140$ 599,183$ -$ 972,629$
Receivables:
Real Estate Taxes, Net - - 52,449 - - - - - - - - - -
Property Taxes, Net - - 7,052 - - - - - - - - - -
Sales Tax - - - - - - - - - - - - -
Hotel and Motel Tax - - - 102,394 - - - - - - - - -
Resturant Tax - - - 174,382 - - - - - - - - -
Special Assesments - - - - - - - - - - - - 18,187
Other - 127,243 - 886 - - - - - 198,523 16,989 - -
Motor Fuel Tax - - - - - - - - - - - - 120,235
Vehicle License Fees - - - - - - - - - - - - 38,103
Motor Vehicle Sales Tax - - - - - - - - - - - - 13,642
Grants - - - - - - - - - - -- -
Inventory - 22,200 - 15,899 - - - - - - - - -
Prepaid Items - 1,963 39,568 70,539 - - 350 490 2,580 21,507 650 - -
TOTAL CURRENT ASSETS 1,362,642$ 1,224,391$ 556,629$ 3,953,475$ 164,154$ -$ 56,297$ 744,817$ 687,802$ 2,980,170$ 616,822$ -$ 1,162,796$
NONCURRENT ASSETS:
Advances to Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,031,759$ -$ -$ -$
TOTAL NONCURRENT ASSETS -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,031,759$ -$ -$ -$
TOTAL ASSETS 1,362,642$ 1,224,391$ 556,629$ 3,953,475$ 164,154$ -$ 56,297$ 744,817$ 687,802$ 5,011,929$ 616,822$ -$ 1,162,796$
CURRENT LIABILITIES:
Accounts Payable -$ 91,249$ 90,398$ 38,937$ -$ -$ 149$ 5,969$ 153$ 3,315$ 948$ -$ -$
Salaries and Benefits Payable - 75,384 2,211 - - - - - - - - - -
Other Liabilities - 889 - - - - - - - - - - -
Unearned Revenues - 142,045 - - - - - - - - - - -
Deferred Revenues - 978 57,806 - - - - - - - - - 18,189
TOTAL CURRENT LIABILITIES -$ 310,545$ 150,415$ 38,937$ -$ -$ 149$ 5,969$ 153$ 3,315$ 948$ -$ 18,189$
NONCURRENT LIAIBILITIES:
Advances from Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
TOTAL NONCURRENT LIABILITIES -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
TOTAL LIABILITIES -$ 310,545$ 150,415$ 38,937$ -$ -$ 149$ 5,969$ 153$ 3,315$ 948$ -$ 18,189$
FUND BALANCE:
Nonspendable -$ 1,963$ 39,568$ 70,539$ -$ -$ 350$ 490$ 2,580$ 2,053,266$ 650$ -$ -$
Restricted 1,362,642 - 366,646 3,843,999 164,154 - - - 237,522 31,422 19,115 - 1,144,607
Committed - - - - - - - - - 2,923,926 - - -
Assigned - 911,883 - - - - 55,798 738,358 447,547 - 596,109 - -
Unassigned - - - - - - - - - - - - -
TOTAL FUND BALANCE 1,362,642$ 913,846$ 406,214$ 3,914,538$ 164,154$ -$ 56,148$ 738,848$ 687,649$ 5,008,614$ 615,874$ -$ 1,144,607$
TOTAL LIABILITIES AND FUND
BALANCE 1,362,642$ 1,224,391$ 556,629$ 3,953,475$ 164,154$ -$ 56,297$ 744,817$ 687,802$ 5,011,929$ 616,822$ -$ 1,162,796$
ASSETS
LIABILITIES AND FUND BALANCE
80
See Independent Auditors' Report
June 30, 2023
CITY OF CAPE GIRARDEAU MISSOURI
COMBINING BALANCE SHEET -
NONMAJOR GOVERNMENTAL FUNDS
Capital Capital
Improvement Improvement Park/Community Stormwater Park
Sales Tax -Sales Tax -Stormwater Parks/Development System System Total
Transportation Transportation Sewer System General Sales Tax - Stormwater Block Grant Improvements Improvements Nonmajor
Sales Tax Sales Tax Improvements Improvements Capital Fire Sales Sales Tax Projects Phase II Phase II Governmental
Trust Fund V Trust Fund VI Fund Fund Fund Tax Fund Fund Fund Fund Fund Funds
CURRENT ASSETS:
Pooled Cash and Investments 11,005,180$ 9,550,884$ 4,476,313$ 5,699,640$ 2,440,760$ -$ 64,870$ 10,920$ 2,248,122$ 1,619,993$ 49,580,846$
Receivables:
Real Estate Taxes, Net - - - - - - - - - - 52,449
Property Taxes, Net - - - - - - - - - - 7,052
Sales Tax - 537,739 278,086 278,086 417,128 268,870 138,983 - - - 1,918,892
Hotel and Motel Tax - - - - - - - - - - 102,394
Resturant Tax - - - - - - - - - - 174,382
Special Assesments - - - - - - - - - - 18,187
Other - - - - - - - - - - 343,641
Motor Fuel Tax - - - - - - - - - - 120,235
Vehicle License Fees - - - - - - - - - - 38,103
Motor Vehicle Sales Tax - - - - - - - - - - 13,642
Grants 20,092 - - - - - - - 67,951 - 88,043
Inventory - - - - - - - - - - 38,099
Prepaid Items - - - - - - - - - - 137,647
TOTAL CURRENT ASSETS 11,025,272$ 10,088,623$ 4,754,399$ 5,977,726$ 2,857,888$ 268,870$ 203,853$ 10,920$ 2,316,073$ 1,619,993$ 52,633,612$
NONCURRENT ASSETS:
Advances to Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,031,759$
TOTAL NONCURRENT ASSETS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,031,759$
TOTAL ASSETS 11,025,272$ 10,088,623$ 4,754,399$ 5,977,726$ 2,857,888$ 268,870$ 203,853$ 10,920$ 2,316,073$ 1,619,993$ 54,665,371$
CURRENT LIABILITIES:
Accounts Payable 569,347$ 514,981$ 23,515$ 39,739$ -$ -$ -$ 1,207$ 272,522$ 333,089$ 1,985,518$
Salaries and Benefits Payable - - - - - - - - - - 77,595
Other Liabilities - - - - - - - - - - 889
Unearned Revenues - - - - - - - - - - 142,045
Deferred Revenues - - - - - - - - - - 76,973
TOTAL CURRENT LIABILITIES 569,347$ 514,981$ 23,515$ 39,739$ -$ -$ -$ 1,207$ 272,522$ 333,089$ 2,283,020$
NONCURRENT LIAIBILITIES:
Advances from Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
TOTAL NONCURRENT LIABILITIES -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
TOTAL LIABILITIES 569,347$ 514,981$ 23,515$ 39,739$ -$ -$ -$ 1,207$ 272,522$ 333,089$ 2,283,020$
FUND BALANCE:
Nonspendable -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,169,406$
Restricted 10,455,925 9,573,642 4,730,884 5,937,987 2,857,888 268,870 203,853 9,713 2,043,551 1,286,904 44,539,324
Committed - - - - - - - - - - 2,923,926
Assigned - - - - - - - - - - 2,749,695
Unassigned - - - - - - - - - - -
TOTAL FUND BALANCE 10,455,925 9,573,642$ 4,730,884$ 5,937,987$ 2,857,888$ 268,870$ 203,853$ 9,713$ 2,043,551$ 1,286,904$ 52,382,351$
TOTAL LIABILITIES AND FUND
BALANCE 11,025,272$ 10,088,623$ 4,754,399$ 5,977,726$ 2,857,888$ 268,870$ 203,853$ 10,920$ 2,316,073$ 1,619,993$ 54,665,371$
LIABILITIES AND FUND BALANCE
ASSETS
See Independent Auditors' Report.
81
CITY OF CAPE GIRARDEAU MISSOURI
COMBINING BALANCE SHEET -
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2023
General Park Riverfront
Capital Parks and Convention Downtown A.C. Brase Development Casino Region Economic Motor
Improvements Recreation Health and Tourism Business Public Safety Foundation Foundation Public Safety Revenue Development Fuel Tax
Fund Fund Fund Fund District Fund Trust Fund Fund Fund Trust Fund II Fund Fund Fund
REVENUES:
Taxes -$ -$ 430,629$ 3,108,058$ 33,205$ -$ -$ -$ -$ 2,472,001$ 213,347$ -$
Intergovernmental - 2,022 10,493 - - - - - - - 6,000 1,950,706
Charges for Services - 1,469,612 - - - - 20,866 100,160 - - - -
Special Assessment - - - - - - - - - - - 21,137
Miscellaneous - 52,388 - - - - - 87,473 - - - -
Investment Revenue 69,839 13,151 18,012 141,099 7,416 - 3,208 31,278 70,236 144,683 18,584 37,643
TOTAL REVENUES 69,839$ 1,537,173$ 459,134$ 3,249,157$ 40,621$ -$ 24,074$ 218,911$ 70,236$ 2,616,684$ 237,931$ 2,009,486$
EXPENDITURES:
Current:
Administrative Services -$ -$ -$ 165$ -$ -$ -$ -$ 286$ 110,338$ -$ -$
Development Services - - - 897,456 39,796 - - - - 600,000 134,934 -
Parks and Recreation - 2,953,740 - - - - 48,736 83,559 - - - -
Public Safety - - 409,736 - - - - - 172,116 14,836 - -
Public Works - - - - - - - - - - - -
Capital Outlay:
Public Safety - - - - - - - - 399,560 15,389 - -
Capital Improvements 291,942 - - - - - - - - - - -
Parks and Recreation - 89,343 - - - - - 18,538 - - - -
Public Works - - - - - - - - - - - -
Debt Service:
Interest - - - 221,270 - - - - 271,767 265,408 - -
Principal - - - 691,600 - - - - 1,018,264 2,034,592 - -
TOTAL EXPENDITURES 291,942$ 3,043,083$ 409,736$ 1,810,491$ 39,796$ -$ 48,736$ 102,097$ 1,861,993$ 3,040,563$ 134,934$ -$
REVENUES OVER (UNDER)
EXPENDITURES (222,103)$ (1,505,910)$ 49,398$ 1,438,666$ 825$ -$ (24,662)$ 116,814$ (1,791,757)$ (423,879)$ 102,997$ 2,009,486$
OTHER FINANCING SOURCES (USES):
Compensation for Damages -$ 1,026$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Asset Disposition - - - - - -- - 19,650 2,220,868 - -
Capital Contributions - - - - - - - - - - - -
Transfers In - 1,572,056 - - - - - - 3,166,959 12,543 204,485 -
Transfers Out (3,000,000) (21,800) - (49,630) - -- (17,000) (1,583,479) (1,804,485) - (1,400,000)
TOTAL OTHER FINANCING SOURCES
(USES)(3,000,000)$ 1,551,282$ -$ (49,630)$ -$ -$ -$ (17,000)$ 1,603,130$ 428,926$ 204,485$ (1,400,000)$
TOTAL REVENUES OVER (UNDER)
EXPENDITURES (3,222,103)$ 45,372$ 49,398$ 1,389,036$ 825$ -$ (24,662)$ 99,814$ (188,627)$ 5,047$ 307,482$ 609,486$
FUND BALANCE, July 1, 2022 4,584,745 868,474 356,816 2,525,502 163,329 16,180 80,810 639,034 860,096 5,003,567 308,392 535,121
PRIOR PERIOD ADJUSTMENT - - - - - (16,180) - - 16,180 - - -
FUND BALANCE, June 30, 2023 1,362,642$ 913,846$ 406,214$ 3,914,538$ 164,154$ -$ 56,148$ 738,848$ 687,649$ 5,008,614$ 615,874$ 1,144,607$
CITY OF CAPE GIRARDEAU, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
Year Ended June 30, 2023
See Independent Auditors' Report.
82
Capital Capital
Improvement Improvement Park/Community Stormwater Park
Sales Tax -Sales Tax -Stormwater Parks/Development System System Total
Transportation Transportation Sewer System General Sales Tax - Stormwater Block Grant Improvements Improvements Nonmajor
Sales Tax Sales Tax Improvements Improvements Capital Fire Sales Sales Tax Projects Phase II Phase II Governmental
Trust Fund V Trust Fund VI Fund Fund Fund Tax Fund Fund Fund Fund Fund Funds
REVENUES:
Taxes -$ 6,378,124$ 3,277,594$ 3,277,593$ 4,916,390$ 3,189,062$ 1,638,737$ -$ -$ -$ 28,934,740$
Intergovernmental 26,918 - - - - - - - 94,440 - 2,090,579
Charges for Services - - - - - - - - - - 1,590,638
Special Assessment - - - - - - - - - - 21,137
Miscellaneous - - - - - - - - - - 139,861
Investment Revenue 566,818 359,961 259,995 238,488 65,221 182 3,153 489 155,067 157,076 2,361,599
TOTAL REVENUES 593,736$ 6,738,085$ 3,537,589$ 3,516,081$ 4,981,611$ 3,189,244$ 1,641,890$ 489$ 249,507$ 157,076$ 35,138,554$
EXPENDITURES:
Current:
Administrative Services -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 110,789$
Development Services - 120,048 120,481 183,846 - - - - - - 2,096,561
Parks and Recreation - - - - - - - - - - 3,086,035
Public Safety - - - - - - - - - - 596,688
Public Works - - - - - - - - 6,577 3,772 10,349
Capital Outlay:
Public Safety - - - - - - - - - - 414,949
Capital Improvements - - - - - - - - - - 291,942
Parks and Recreation - - - - 186,695 - - - - 3,327,809 3,622,385
Public Works 3,550,731 3,063,408 - 325,532 - - - - 2,584,489 - 9,524,160
Debt Service:
Interest - - - 413,260 297,928 - - - - - 1,469,633
Principal - - - 1,135,000 - - - - - - 4,879,456
TOTAL EXPENDITURES 3,550,731$ 3,183,456$ 120,481$ 2,057,638$ 484,623$ -$ -$ -$ 2,591,066$ 3,331,581$ 26,102,947$
REVENUES OVER (UNDER)
EXPENDITURES (2,956,995)$ 3,554,629$ 3,417,108$ 1,458,443$ 4,496,988$ 3,189,244$ 1,641,890$ 489$ (2,341,559)$ (3,174,505)$ 9,035,607$
OTHER FINANCING SOURCES (USES):
Compensation for Damages -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,026$
Asset Disposition - - - - 11,700 - - - - - 2,252,218
Transfers In - - - 3,400,000 - - - - 846,722 2,000,000 11,202,765
Transfers Out - - (2,647,275) (3,750,000) (4,556,715) (3,166,959) (1,639,893) - - - (23,637,236)
TOTAL OTHER FINANCING SOURCES
(USES)-$ -$ (2,647,275)$ (350,000)$ (4,545,015)$ (3,166,959)$ (1,639,893)$ -$ 846,722$ 2,000,000$ (10,181,227)$
TOTAL REVENUES OVER (UNDER)
EXPENDITURES (2,956,995)$ 3,554,629$ 769,833$ 1,108,443$ (48,027)$ 22,285$ 1,997$ 489$ (1,494,837)$ (1,174,505)$ (1,145,620)$
FUND BALANCE, July 1, 2022 13,412,920 6,019,013 3,961,051 4,829,544 2,905,915 246,585 201,856 9,224 3,538,388 2,461,409 53,527,971
PRIOR PERIOD ADJUSTMENT - - - - - - - - - - -
FUND BALANCE, June 30, 2023 10,455,925$ 9,573,642$ 4,730,884$ 5,937,987$ 2,857,888$ 268,870$ 203,853$ 9,713$ 2,043,551$ 1,286,904$ 52,382,351$
CITY OF CAPE GIRARDEAU, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS
Year Ended June 30, 2023
See Independent Auditors' Report.
83
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
84
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and Members of the City Council
City of Cape Girardeau, Missouri
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Cape Girardeau, Missouri’s compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a
direct and material effect on the City of Cape Girardeau, Missouri’s major federal program for the
year ended June 30, 2023. The City of Cape Girardeau, Missouri’s major federal program is
identified in the summary of auditors’ results section of the accompanying Schedule of Findings
and Questioned Costs.
In our opinion, the City of Cape Girardeau, Missouri complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material effect on
its major federal program for the year ended June 30, 2023.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States; and the
audit requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are
further described in the Auditors’ Responsibilities for the Audit of Compliance section of our
report.
We are required to be independent of the City of Cape Girardeau, Missouri and to meet our other
ethical responsibilities in accordance with relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion on compliance for the major federal program. Our audit does not provide a legal
determination of the City of Cape Girardeau, Missouri’s compliance with the compliance
requirements referred to above.
85
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements
applicable to of the City of Cape Girardeau, Missouri’s federal program.
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City of Cape Girardeau, Missouri’s compliance based on our audit. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards, Government
Auditing Standards, and the Uniform Guidance will always detect material noncompliance when
it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for
that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Non-compliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the City of Cape Girardeau, Missouri’s compliance with the
requirements of the major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government
Auditing Standards, and the Uniform Guidance, we
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City of Cape Girardeau, Missouri’s
compliance with the compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City of Cape Girardeau, Missouri’s internal control over
compliance relevant to the audit in order to design audit procedures that are appropriate in
the circumstances and to test and report on internal control over compliance in accordance
with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of the City of Cape Girardeau, Missouri’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
86
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to
identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies in internal control over compliance. Given these limitations, during our
audit, we did not identify any deficiencies in internal control over compliance that we consider to
be a material weakness, as defined above. However, material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
January 20, 2024
87
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members of the City Council
City of Cape Girardeau, Missouri
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information of the City of Cape Girardeau, Missouri as of and for the year ended June 30,
2023, and the related notes to the financial statements, which collectively comprise the City of
Cape Girardeau, Missouri’s basic financial statements, and have issued our report thereon dated
January 20, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Cape
Girardeau, Missouri’s internal control over financial reporting (internal control) as a basis for
designing audit procedures that are appropriate in the circumstances for the purpose of expressing
our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City of Cape Girardeau, Missouri’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City of Cape Girardeau, Missouri’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the City’s financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
88
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Cape Girardeau, Missouri’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the financial statements. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
BEUSSINK, HEY, ROE & STRODER, L.L.C.
Cape Girardeau, Missouri
January 20, 2024
Federal Passed
Assistance Listing Program Through to
Federal Grantor/Pass-Through Grantor Program Title Number Number Subrecipients
U.S. DEPARTMENT OF COMMERCE:
Economic Development Technical Assistance 11.303 N/A -$ 6,000$
TOTAL U.S. DEPARTMENT OF COMMERCE 6,000$
U.S. DEPARTMENT OF DEFENSE:
Loan of DOD Property (non-cash)12.UNKNOWN N/A - 100,000$
TOTAL U.S. DEPARTMENT OF DEFENSE 100,000$
U.S. DEPARTMENT OF JUSTICE:
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 15PBJA-21-GG-01606-JAGX - 19,926$
Body Worn Camera Policy and Implementation
Program 16.835 2020-BX-BX-0034 - 111,975
TOTAL U.S. DEPARTMENT OF JUSTICE 131,901$
U.S. DEPARTMENT OF TRANSPORTATION:
Passed Through Missouri Department of 20.106 3-29-0013-015 -$ 4,821,394$
Transportation - COVID-19 - Airport 3-29-0013-016 - 242,010
Improvement Program (1)3-29-0013-018 - 1,381,393 6,444,797$
Passed Through Missouri Department of 20.205 J9P3862/FAF-74-1(21)-$ 20,092$
Transportation - Highway Planning and Construction TAP-1501(020)- 6,826
MO-81-0013 - 136,598
Passed Through Illinois Department of
Transportation - Highway Planning and Construction 20.205 SPR-PL-3000(48)- 2,043 165,559
Highway Safety Cluster:
Passed Through Missouri Department of 20.600 23-PT-02-072 -$ 7,598$
Transportation - State and Community Highway Safety 22-PT-02-055 - 6,130
23-CP-09-004 - 141,020
22-CP-09-004 - 162,187
Total Highway Safety Cluster 316,935
Passed Through Missouri Department of 20.607 23-154-AL-056 -$ 5,236$
Transportation - Alcohol Open Container Requirements 22-154-AL-051 - 815 6,051
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 6,933,342$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2023
Disbursements
89
Federal Passed
Assistance Listing Program Through to
Federal Grantor/Pass-Through Grantor Program Title Number Number Subrecipients
U.S. DEPARTMENT OF THE TREASURY:
COVID-19 - Coronavirus State and Local Fiscal
Recovery Funds 21.027 N/A -$ 618,212$
Passed Through Missouri Department of Natural
Resources - COVID-19 - Coronavirus
State and Local Fiscal Recovery Funds 21.027 73,134,579 -$ 26,489 644,701
TOTAL U.S. DEPARTMENT OF THE TREASURY 644,701$
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES:
Passed Through the Missouri Department of Health
Management Agencyand Human Services - Epidemiology and Laboratory
Capacity for Infectious Disease 93.323 KQ220051176 -$ 9,600$
Passed Through the Missouri Department of Health
Management Agencyand Human Services - Assistance Programs for
Chrronic Disease Prevention and Control 93.945 NU58DP006985-01-00 -$ 2,022
TOTAL U.S. DEPARTMENT HEALTH AND HUMAN
SERVICES 11,622$
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2023
Disbursements
90
Federal Passed
Assistance Listing Program Through to
Federal Grantor/Pass-Through Grantor Program Title Number Number Subrecipients
U.S. DEPARTMENT OF HOMELAND SECURITY:
Passed Through the Missouri Department of Public 97.042 EMK-2022-EP-00004-21 -$ 12,622$
Management AgencySafety - Emergency Management Performance Grants EMK-2021-EP-0006-SL07 - 2,847 15,469
Assistance to Firefighters Grant 97.044 EMW-2021-FG-00303 -$ 43,231$
EMW-2020-FG-10923 - 671 43,902
Passed Through the Missouri Department of Public 97.067 EMW-2022-SS-00094-16 -$ 4,700$
Safety - Homeland Security Grant Program EMW-2021-SS-00038-56 - 38,950
EMW-2021-SS-00038-27 - 448
EMW-2022-SS-00094-44 - 23,447 67,545
Passed Through Southeast Missouri Regional Planning 97.067 EMW-2021-SS-00038-06-05 -$ 44,576$
and Economic Development Comission EMW-2019-SS-00039-06-04 - 3,171
EMW-2020-SS-00051-06-03 - 17,455
EMW-2020-SS-0051-06-04 - 8,485
EMW-2021-SS-00038-06-04 - 3,590
EMW-2022-SS-00094-05-04 - 495
EMW-2022-SS-00094-57 - 63,493 141,265
Passed Through the Missouri Department of Public
Safety - Staffing for Adequate Fire and Emergency
Response (SAFER)97.083 EMW-2018-FH-00494 -$ 45,834
Law Enforcement Officer Reimbursement
Agreement Program 97.090 N/A -$ 17,800
TOTAL U.S. DEPARTMENT OF HOMELAND
SECURITY 331,815$
TOTAL FEDERAL AWARDS 8,159,381$
(1) Identified major program.
City of Cape Girardeau, Missouri
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2023
Disbursements
91
92
City of Cape Girardeau, Missouri
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Purpose of Schedule and Reporting Entity:
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes
the federal award activity of the City of Cape Girardeau, Missouri under programs of the
federal government for the year ended June 30, 2023. The information in this Schedule is
presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net assets, or cash flows of the City of Cape Girardeau, Missouri
B. Basis of Presentation:
The Schedule is presented in accordance with the Uniform Guidance, which defines federal
financial assistance “…assistance that non-federal entities receive or administer in the form
of grants, loans, loan guarantees, property (including donated surplus property),
cooperative agreements, interest subsidies, insurance, food commodities, direct
appropriations, and other assistance, but does not include amounts received as
reimbursement for services rendered to individuals.”
C. Basis of Accounting:
The Schedule is presented on the modified accrual basis of accounting, which recognizes
expenditures when liabilities for goods and services are incurred. This is the same basis of
accounting presented in the financial statements.
D. Indirect Cost Rate:
The City’s grant programs involve reimbursement of the City’s actual costs of
administering the programs, and therefore, the City is not reimbursed for indirect costs and
does not apply any indirect cost rate.
93
City of Cape Girardeau, Missouri
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2023
1. SUMMARY OF AUDITORS’ RESULTS:
Financial Statements
Type of report issued on whether the financial statements
audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
• Material weaknesses identified? yes X__no
• Significant deficiencies identified? ____yes X none reported
Noncompliance material to financial statements
noted? yes X no
Federal Awards
Internal control over major programs:
• Material weaknesses identified? ___yes X no
• Significant deficiencies identified that are not
considered to be material weaknesses? yes X none reported
Type of Auditors’ report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR 200.516 (A)? yes X no
Identification of major programs.
CFDA Number Name of Federal Program
20.106 Airport Improvement Program
94
Dollar threshold used to distinguish
between type A and type B programs: $750,000
Auditee qualified as low-risk auditee: yes X no
2. FINANCIAL STATEMENT FINDINGS:
No findings 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.
95
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 30, 2023
1. FINANCIAL STATEMENT FINDINGS:
2022-001 Significant Audit Adjustments:
Criteria: For year end financial reporting to be relevant and reliable,
all transactions should be recorded correctly in accordance
with generally accepted accounting principles.
Recommendation: Internal controls need to be put in place to ensure all
transactions are recorded in the City’s financial statements.
Status: Implemented.
2. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No federal findings were noted that were required to be reported.