HomeMy WebLinkAbout2023-2024.AuditReportCITY OF CAPE GIRARDEAU, MISSOURI
Cape Girardeau, Missouri
For the Year Ended June 30, 2024
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 24-68
REQUIRED SUPPLEMENTAL INFORMATION
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND
ACTUAL - GENERAL FUND 69
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
AIRPORT FUND 70
NOTES TO BUDGETARY COMPARISON SCHEDULES 71-73
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS - GENERAL DIVISION 74
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS - POLICE DIVISION
75
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS - FIRE DIVISION 76
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY
AND RELATED RATIOS - PUBLIC SAFETY DIVISION 77
SCHEDULE OF EMPLOYER CONTRIBUTIONS
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 GO VERNMENTA UDITING 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
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, 2024, 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, 2024, 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 Oainions
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.
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
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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, pension liability
schedules, and other post -employment benefit liability schedule on pages 4 through 10 and 69
through 79 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 considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational,
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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
December 24, 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
December 24, 2024
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CAPE GIRARDEAU, MISSOURI
Management's Discussion and Analysis
The discussion and analysis of the City of Cape
Girardeau's financial performance provides an
overall review of the City's financial activities
for the fiscal year ended June 30, 2024. 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
o 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 $448,648,740 (net
position).
o As of the close of the current fiscal year, the
City's governmental funds reported combined
ending fund balances of $80,424,240.
Approximately 19.5% of this total amount,
$15,715,569 is available for spending at the
government's discretion (unassigned fund
balance).
o At the end of the current fiscal year, the
unassigned fund balance for the general fund
was $16,018,459 or 51% of total general fund
expenditures and transfers.
o At the end of the current fiscal year, general
fund balance reserved for emergencies was
$4,468,402 or 14.3% 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
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 Airport 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
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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
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 $448,648,740;
an increase of $33,899,720 (8%). The City's net
investment in capital assets (land, buildings,
machinery, and equipment less related
outstanding debt used to acquire those assets) of
$321,299,111 makes up 72% 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 $23,747,136 during the current
year (compared to $12,782,140 in the previous
fiscal year).
CITY OF CAPE GIRARDEAU, MISSOURI
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 $9,072,285.
The General Fund Revenue, which represents 40% of the Total Governmental Fund Revenue, derives 81 % of
its revenue from taxes. The following were the significant changes in General Fund Tax Revenue Sources
during the current fiscal year:
o Sales Tax Revenue represents 50% of the total General Fund tax revenue and increased
$338,469 (3%).
o Use Tax Revenue represents 17% of the total General Fund tax revenue and increased
$1,566,806 during the current year.
o Marijuana Tax Revenue representing the first seven months of collections since the passage of
the tax totaled $419,066.
o Property Tax represents 9% of the total General Fund tax revenue and increased $110,838.
• Total Tax Initiative Revenue increased $596,710, representing increases in Transportation Sales Tax, Capital
Improvement Sales Tax, Parks/Stormwater Sales Tax, and Fire Sales Tax.
• Operating and Capital grants and contributions increased $3,763,226 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 increased $173,154 during the current year. The restaurant tax increased by
$57,654 and hotel/motel tax increased by $115,500 from the previous year.
• Gaming revenue received by the casino revenue fund increased $21,947 from the previous year.
• Interest and investment revenue in the General Fund increased $617,556, while investment revenue increased
$1,027,489 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 $1,373,948 for these expenditures during the current fiscal year. The City's 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 $325,222 (3%) from the previous year.
• The Capital Outlay for the current fiscal year increased $4,745,148.
• Governmental Fund Activities included Debt Service principal and interest payments, which were $2,294,653
less 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 — $286,144 increase over prior year.
o Water Fund - $298,871 increase over prior year.
o Solid Waste - $382,254 increase over prior year.
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CITY OF CAPE GIRARDEAU, MISSOURI
o Non -Major Funds (Golf Course, Indoor Sports Complex and Sports Complexes) - $110,800 increase over
prior year.
• Operating and Capital grants and contributions increased $634,234 from the previous year.
• The City implemented rate increases in Residential Water, Residential Trash 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 $1,336,871 during the current fiscal year.
o Personnel services, which comprise 19% of the total operating expenditures increased $717,993
• Proprietary operating expenses other than personnel increased $618,878.
o Sewer Fund - $88,322 increase over prior year
o Water Fund - $254,984 increase over prior year
o Solid Waste Fund - $216,983 increase over prior year
o Non -Major Funds - $58,589 increase over prior year
• Personnel expenses, salaries and benefits, increase of $956,879.
o Sewer increased $61,754
o Water increased $57,403
o Solid Waste increased $300,598
o Non -Major Funds increased $298,238
N.
CITY OF CAPE GIRARDEAU, MISSOURI
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, 2024, the City's governmental
funds reported combined ending fund balances
of $80,424,240, an increase of $9,453,711 (13%)
from the prior year. Unassigned fund balances,
which are available for spending at the City's
discretion, account for $15,715,569 (20%) 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, 2024: (1) $2,691,682 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) $53,250,223
is classified as restricted because it can be spent
only for specific purposes because of restrictions
by external parties, constitutional provisions or
enabling legislation 3) $4,377,231 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)
$4,389,535 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
$16,018,459 while total fund balance was
$21,057,789. 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 51% of total general fund
expenditures including transfers.
Included in the restricted fund balance is $4,468,402
which is General Fund reserved to meet the required
City Charter emergency reserve. This amount
represents 14.3% 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 $5,589,807 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, 2024 amounts
to $409,719,713 (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 $88,420,602.
Bonded debt outstanding totaling $48,135,321 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
$7,756,144 (9%) during the current fiscal year as a
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
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 3%. The current
year's average rate of inflation was the
contributor to the increase in sales tax revenue.
I Tce 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 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. In addition, in
the current fiscal year, the City increased the
stated pay plan rates by 3%.
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.
During the current year, the City of Cape Girardeau
continued the support of economic development by
approving RPA1 of the River City Centre, LLC
Development. This is the first of six approved RPA's
in the redevelopment area.
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, 2025 and
financial condition
The City's current financial position continued to
improve during the fiscal year ended June 30, 2024.
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, 2025
was conservatively prepared expecting some
remaining increases resulting from inflation. The
budget reflects modest increases in expenditures
resulting from operations while conservatively
projecting revenues. The budget is balanced by
utilizing a minimal amount of reserves that have
accumulated through June 2024.
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, 44 N.
Lorimier St., Cape Girardeau, MO 63701.
BASIC FINANCIAL STATEMENTS
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF NET POSITION
June 30, 2024
Noncurrent Assets:
Restricted Cash and Cash Equivalents
Governmental
Business -Type
$
ASSETS
Activities
Activities
Total
Current Assets:
252,745
825,112
Pooled Cash and Investments
$ 79,589,081
$ 34,914,331
$ 114,503,412
Investments
404,678
-
404,678
Taxes Receivable
4,606,065
-
4,606,065
Utility Charges Receivable
-
2,694,008
2,694,008
Special Assessments Receivable
325,763
998
326,761
Other Receivables
1,058,539
36,669
1,095,208
Motor Fuel Receivable
308,452
-
308,452
Grants Receivable
4,914,001
1,652
4,915,653
Lease Receivable
76,346
48,184
124,530
Inventory
309,648
956,815
1,266,463
Prepaid Items
991,493
15,948
1,007,441
Internal Balances
101,803
(101,803)
-
Total Current Assets
$ 92,685,869
$ 38,566,802
$ 131,252,671
Noncurrent Assets:
Restricted Cash and Cash Equivalents
$
-
$
5,087,963
$
5,087,963
Lease Receivable
252,745
825,112
1,077,857
Net Pension Assets
4,182,726
1,268,569
5,451,295
Land
6,950,644
1,985,018
8,935,662
Buildings, Net
49,913,187
13,582,734
63,495,921
Improvements, Net
17,329,853
144,374,066
161,703,919
Furniture, Machinery and Equipment, Net
12,139,258
5,963,499
18,102,757
Infrastructure and Improvements, Net
131,261,362
-
131,261,362
Construction in Progress
23,012,863
3,207,229
26,220,092
Total Capital Assets, Net
$
245,042,638
$
176,294,190
$
421,336,828
TOTAL ASSETS
$
337,728,507
$
214,860,992
$
552,589,499
DEFERRED OUTFLOWS
OF RESOURCES
Deferred Outflow from Pension Plan
$
7,563,519
$
630,524
$
8,194,043
Deferred Outflow from Retiree Health Plan
1,128,495
214,664
1,343,159
Total Deferred Outflows of Resources
8,692,014
845,188
9,537,202
See Accompanying Notes to the Basic Financial Statements.
LIABILITIES
Current Liabilities:
Accounts Payable
Salaries and Benefits Payable
Interest Payable
Other Liabilities
Estimated Claims
Unearned Revenues
Revenue Bonds Payable, Current Portion
Special Obligation Bonds Payable Current Portion
Total Current Liabilities
Long -Term Liabilities:
Revenue Bonds Payable
Special Obligation Bonds Payable
Compensated Absences Payable
Net OPEB Obligation
Total Long -Term Liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS
OF RESOURCES
Deferred Inflow From Leases
Deferred Inflow From Pension Plan
Deferred Inflow from Retiree Health Plan
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Restricted
Unrestricted
TOTAL NET POSITION
CITY OF CAPE GIRARDEAU. MISSOURI
STATEMENT OF NET POSITION
June 30, 2024
Governmental
Activities
$ 3,994,227
867,067
95,516
684,258
763,100
304,919
3,015,000
$ 9,724,087
35,562,882
1,348,358
8,874,362
$ 45,785,602
$ 55,509,689
$ 290,534
997,043
1,056,545
$ 2,344,122
$ 202,029,285
53,250,223
33,287,202
$ 288,566,710
Business -Type
Activities
$ 836,645
253,190
295,886
1,262,662
853,124
4,223,000
345,000
$ 8,069,507
$ 43,912,321
1,362,399
177,573
959,137
$ 46,411,430
$ 54,480,937
$ 827,647
246,111
69,455
$ 1,143,213
$ 119,269,826
3,067,889
37,744,315
$ 160,082,030
See Accompanying Notes to the Basic Financial Statements.
Total
$ 4,830,872
1,120,257
391,402
1,946,920
763,100
1,158,043
4,223,000
3,360,000
$ 17,793,594
$ 43,912,321
36,925,281
1,525,931
9,833,499
$ 92,197,032
$ 109,990,626
$ 1,118,181
1,243,154
1,126,000
$ 3,487,335
$ 321,299,111
56,318,112
71,031,517
$ 448,648,740
Functions/Pro
Governmental Activities:
Interest and Other Charges
Development Services
Public Safety
Public Works
Parks and Recreation
Administrative
Total Governmental Activities
Business -Type Activities:
Golf Course Fund
Indoor Sports Complex
Sewer Fund
Solid Waste Fund
Sporting Complexes Fund
Water Fund
Total Business -Type Activities
Total Primary Government
Expenses
$ 1,083,966
8,069,969
20,200,775
11,766,045
7,534,099
4,433,715
$ 53,088,569
$ 904,054
1,338,287
10,394,046
6,248,726
1,525,185
9,102,866
$ 29,513,164
$ 82,601,733
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF ACTIVITIES
Year Ended June 30, 2024
General Revenues:
Taxes:
Property Taxes
Sales Tax
Franchise Tax
Motor Fuel Taxes
Convention and Tourism Taxes
Use Tax
Gaming Taxes
Other Taxes
Merchant Licenses
Liquor Licenses
Investment Income
Gain (Loss) on Disposal of Capital Assets
Compensation for Damages
Settlements
Internal Balances
Total General Revenues and Transfers
Change in Net Position
Net Position - July 1, 2023
Prior Period Adjustment
Net Position - June 30, 2024
See Accompanying Notes to the Basic Financial Statements.
12
$ 3,142,501
37,148,534
5,270,513
2,060,511
3,281,891
4,638,841
2,702,105
607,045
1,842,839
87,368
4,525,791
220,335
254,697
33,767
(6,486,661)
59,330,077
$ 23,682,929
264,819,574
64,207
1,864,216
(102,850)
24,021
6,486,661
$ 8,272,048
$ 3,142,501
37,148,534
5,270,513
2,060,511
3,281,891
4,638,841
2,702,105
607,045
1,842,839
87,368
6,390,007
117,485
254,697
57,788
$ 67,602,125
$ 9,152,584 $ 32,835,513
150,929,446
415,749,020
64,207
$ 288,566,710 $ 160,082,030 $ 448,648,740
Program Revenues
Net (Expense) Revenue and
Operating
Capital
Change in Net Position
Charges
Grants and
Grants and
Governmental
Business -Type
for Services
Contributions
Contributions
Activities
Activities
Total
$
-
$ -
$ -
$ (1,083,966)
$ -
$
(1,083,966)
1,873,114
409,452
9,112,068
3,324,665
-
3,324,665
397,182
434,682
273,563
(19,095,348)
-
(19,095,348)
40,561
-
1,061,804
(10,663,680)
-
(10,663,680)
2,067,288
90,311
222,932
(5,153,568)
-
(5,153,568)
1,410,617
-
47,847
(2,975,251)
-
(2,975,251)
$
5,788,762
$ 934,445
$ 10,718,214
$ (35,647,148)
$ -
$ (35,647,148)
$
951,112
$ -
$ 53,874
$ -
$ 100,932
$
100,932
951,214
-
-
-
(387,073)
(387,073)
8,241,818
1,487,216
2,673,613
-
2,008,601
2,008,601
6,454,755
14,678
-
-
220,707
220,707
365,526
-
14,208
-
(1,145,451)
(1,145,451)
8,707,453
-
478,233
-
82,820
82,820
$
25,671,878
$ 1,501,894
$ 3,219,928
$ -
$ 880,536
$
880,536
$
31,460,640
$ 2,436,339
$ 13,938,142
$ (35,647,148)
$ 880,536
$
(34,766,612)
General Revenues:
Taxes:
Property Taxes
Sales Tax
Franchise Tax
Motor Fuel Taxes
Convention and Tourism Taxes
Use Tax
Gaming Taxes
Other Taxes
Merchant Licenses
Liquor Licenses
Investment Income
Gain (Loss) on Disposal of Capital Assets
Compensation for Damages
Settlements
Internal Balances
Total General Revenues and Transfers
Change in Net Position
Net Position - July 1, 2023
Prior Period Adjustment
Net Position - June 30, 2024
See Accompanying Notes to the Basic Financial Statements.
12
$ 3,142,501
37,148,534
5,270,513
2,060,511
3,281,891
4,638,841
2,702,105
607,045
1,842,839
87,368
4,525,791
220,335
254,697
33,767
(6,486,661)
59,330,077
$ 23,682,929
264,819,574
64,207
1,864,216
(102,850)
24,021
6,486,661
$ 8,272,048
$ 3,142,501
37,148,534
5,270,513
2,060,511
3,281,891
4,638,841
2,702,105
607,045
1,842,839
87,368
6,390,007
117,485
254,697
57,788
$ 67,602,125
$ 9,152,584 $ 32,835,513
150,929,446
415,749,020
64,207
$ 288,566,710 $ 160,082,030 $ 448,648,740
FUND FINANCIAL STATEMENTS
ASSETS
CURRENT ASSETS:
Pooled Cash and Investments
Receivables:
Real Estate Taxes, Net
Property Taxes, Net
Sales Tax
Franchise Tax
Use Tax
Hotel and Motel Tax
Restaurant Tax
Special Assessments
Other
Motor Fuel Tax
Vehicle License Fees
Motor Vehicle Sales Tax
Grants
Other Funds
Inventory
Prepaid Items
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Advances to Other Funds
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES:
Accounts Payable
Salaries and Benefits Payable
Other Liabilities
Payable to Other Funds
Unearned Revenues
Deferred Revenues
CURRENT LIABILITIES
NONCURRENT LIABILITIES:
Advances from Other Funds
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
FUND BALANCE:
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND
BALANCE
CITY OF CAPE GIRARDEAU, MISSOURI
BALANCE SHEET -
GOVERNMENTAL FUNDS
June 30, 2024
Nonmaj or
General Airport Governmental
Fund Fund Funds
$ 15,208,957
$
4,528,209
337,809
-
43,565
-
1,178,464
-
403,570
-
298,011
-
312,063
-
91,414
307,230
110,395
4,748,038
5,014,863
-
214
78,201
304,773
22,953
23,304,098
9,684,631
$ 23,304,098
$
9,684,631
$ 279,656
641,505
619,987
17,050
688,111
$ 2,246,309
$ 2,246,309
$ 409,138
4,553,863
76,329
16,018,459
$ 2,345,676
24,300
63,382
5,014,863
1,900
$ 7,450,121
$ 1,235,061
$ 1,235,061
$ 8,685,182
$ 22,953
976,496
21,057,789 999,449
$ 54,729,751
63,137
8,164
1,986,161
106,137
181,047
13,700
415,179
256,190
39,668
12,594
55,568
42,976
439,831
58,350,103
$ 1,819,760
$ 1,819,760
$ 60,169,863
$ 1,315,256
118,399
889
165,817
202,500
$ 1,802,861
$ 1,802,861
$ 2,259,591
48,696,360
4,377,231
3,336,710
(302,890)
58,367,002
Total
Governmental
Funds
$ 74,466,917
400,946
51,729
3,164,625
403,570
298,011
106,137
181,047
325,763
813,823
256,190
39,668
12,594
4,914,001
5,014,863
121,391
767,557
91,338,832
$ 1,819,760
$ 1,819,760
$ 93,158,592
$ 3,940,588
784,204
684,258
5,014,863
184,767
890,611
$ 11,499,291
$ 1,235,061
$ 1,235,061
$ 12,734,352
$ 2,691,682
53,250,223
4,377,231
4,389,535
15,715,569
80,424,240
$ 23,304,098 $ 9,684,631 $ 60,169,863 $ 93,158,592
See Accompanying Notes to the Basic Financial Statements.
13
CITY OF CAPE GIRARDEAU, MISSOURI
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
June 30, 2024
Total fund balance - total governmental funds
(Balance Sheet - Governmental Funds) $ 80,424,240
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 $182,093,195. 238,891,793
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. 6,577,988
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. 10,398,986
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. (145,421)
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. (8,524,420)
Note receivables are not financial resources and therefore
are not reported in the governmental funds balance sheet.
Lease receivables are not financial resources and therefore
are not reported in the governmental funds balance sheet. 329,091
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. (290,534)
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. (1,287,590)
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 (38,577,882)
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. 770,459
Net position of governmental activities (Statement of Net Position) $ 288,566,710
See Accompanying Notes to the Basic Financial Statements.
14
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
REVENUES:
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Internal Charges
Fines and Forfeits
Miscellaneous
Investment Revenue
Special Assessments
TOTAL REVENUES
EXPENDITURES:
Current:
Administrative Services
Development Services
Parks and Recreation
Public Safety
Public Works
Debt Service:
Interest
Principal
Capital Outlay:
Administrative Services
Development Services
Capital Improvements
Parks and Recreation
Public Works
Public Safety
TOTAL EXPENDITURES
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers In
Transfers Out
Compensation for Damages
Settlements
Gain (Loss) from Sale of Asset
Capital Contributions
TOTAL OTHER FINANCING SOURCES
(USES)
NET CHANGE IN FUND BALANCES
FUND BALANCE, July 1, 2023
PRIOR PERIOD ADJUSTMENT
FUND BALANCE, June 30, 2024
Year Ended June 30, 2024
Nonmaj or
General Airport Governmental
Fund Fund Funds
$ 26,893,852
2,263,236
712,928
193,612
1,387,434
239,794
463,500
929,001
9,100
$ 33,092,457
9,521,521
663,856
372,388
332,854
s 1U'z5VU,bly
$ 29,747,816
3,103,899
1,718,450
178,570
2,986,657
4,487
$ 37,739,879
Total
Governmental
Funds
$ 56,641,668
2,263,236
13,338,348
2,575,918
1,387,434
239,794
1,014,458
4,248,512
13,587
$ 81,722,955
$ 3,698,069 $ - $ 134,238 $ 3,832,307
2,898,677 2,360,727 1,826,728 7,086,132
1,706,676 - 3,564,392 5,271,068
18,159,701 - 657,680 18,817,381
2,558,244 - - 2,558,244
5,896
160,640
350,284
$ 29,538,187
N 2 ccn '1"7(1
$ 6,319,985
(4,803,797)
17,567
33,767
468,015
11,489,415
1, 1S,Z5DU,14L
$ (2,959,523)
687,106
215,832
45
1,129,900
2,924,536
104,983
29,137
66,748
4,944,022
7,940,718
471,331
$ 23,794,413
$ 13,945,466
$ 8,692,291
(17,3 82,246)
21,298
595,635
48,000
1,129,900
2,924,536
110,879
11,518,552
66,748
5,104,662
7,940,718
821,615
$ 67,182,742
$ 14,540,213
$ 15,699,382
(22,186,043)
254,697
33,767
1,063,695
48,000
$ 2,035,537 $ 902,983 $ (8,025,022) $ (5,086,502)
$ 5,589,807
15,467,982
$ (2,056,540) $ 5,920,444 $ 9,453,711
3,055,989
52,3 82,3 51 70,906,322
64,207 64,207
$ 21,057,789 $ 999,449 $ 58,367,002
See Accompanying Notes to the Basic Financial Statements.
15
$ 80,424,240
CITY OF CAPE GIRARDEAU. MISSOURI
RECONCILIATION OF THE STATEMENT
OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Year Ended June 30, 2024
Net Change in fund balances - total governmental funds (Statement of Revenues,
Expenditures, and Changes in Fund Balances - Governmental Funds)
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.
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.
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.
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.
Changes in compensated absences does not require the use of current financial
resources and is therefore not reported as expenditures in governmental funds.
Revenues in the statement of activities that do no provide current financial
resources are not reported as revenues in governmental funds.
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.
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.
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.
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.
Change in net position of governmental activities (Statement of Activities)
See Accompanying Notes to the Basic Financial Statements.
10
9,453,711
23,546,671
(11,000,282)
(844,590)
255,595
38,365
385,028
(1,542,335)
11,577
2,970,470
408,719
$ 23,682,929
ASSETS
CURRENT ASSETS:
Pooled Cash and Investments
Investments
Receivables:
Utility Charges, Net
Special Assessments
Leases
Other
Grants
Inventory
Prepaid Items
Total Current Assets
NONCURRENT ASSETS:
Restricted Cash and Cash Equivalents
Lease Receivable
Net Pension Asset
Land
Buildings
Equipment
Other Improvements
Construction in Progress
Accumulated Depreciation
Total Current Assets
TOTAL ASSETS
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2024
Business -Type Activities
Non -Major Total
Sewer Water Solid Waste Enterprise Enterprise Internal
Fund Fund Fund Funds Funds Service Funds
$ 17,914,717
$ 10,500,420
$ 4,354,411
$ 2,144,783 $
34,914,331
1,028,989
1,150,412
514,607
-
2,694,008
998
-
-
-
998
-
4,870
43,314
-
48,184
2,510
32,664
1,495
-
36,669
400
-
1,252
-
1,652
-
911,113
-
45,702
956,815
8,705
4,758
1,214
1,271
15,948
$ 18,956,319
$ 12,604,237
$ 4,916,293
$ 2,191,756 $
38,668,605
$ 4,357,232
566,227
537,678
8,093,164
8,367,737
169,523,144
2,599,682
(79,728,290)
114,316,574
$ 133,272,893
$ 730,731
335,274
149,664
306,244
3,080,041
73,476,831
595,593
(36,286,260)
42,388,118
$ 54,992,355
489,838
289,137
112,240
4,928,942
4,303,496
344,023
(5,334,201)
5,133,475
$ 10,049,768
263,541
1,335,100
13,449,347
1,724,496
5,409,647
11,954
(7,738,062)
14,456,023
$ 16,647,779
$ 5,087,963
825,112
1,268,569
1,985,018
26,777,697
17,475,770
248,753,645
3,207,229
(129,086,813)
176,294,190
$ 214,962,795
$ 5,122,164
404,678
244,716
188,257
223,936
$ 6,183,751
150,539
37,500
53,906
7,379,894
155,653
(5,911,579)
1,865,913
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Outflow from Pension Plan $ 256,406 $ 30,700 $ 240,180 $ 103,238 $ 630,524 $ 199,677
Deferred Outflow from Retiree Health Plan 73,036 5,497 87,253 48,878 214,664 72,991
Total Deferred Outflows of Resources $ 329,442 $ 36,197 $ 327,433 $ 152,116 $ 845,188 $ 272,668
See Accompanying Notes to the Basic Financial Statements.
17
LIABILITIES
CURRENT LIABILITIES:
Accounts Payable
Salaries and Benefits Payable
Interest Payable
Other Liabilities
Estimated Claims Payable
Unearned Revenues
Revenue Bonds Payable, Current Portion
Special Obligation Bonds Payable, Current Portion
Total Current Liabilities
NONCURRENT LIAIBILITIES:
Net OPEB Obligation
Compensated Absences Payable
Advances from Other Funds
Revenue Bonds Payable
Special Obligation Bonds Payable
Total Noncurrent Liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflow from Pension Plan
Deferred Inflow from Leases
Deferred Inflow from Retiree Health Plan
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Restricted:
Depreciation and Replacement
Emergencies
Unrestricted
TOTAL NET POSITION
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2024
$ 316,958
77,730
38,101,000
$ 41,047
5,811,321
$ 38,495,688 $ 5,852,368
$ 43,909,533
$ 49,918
23,906
$ 73,824
m 17 ALA ncn
$ 59,331
317,164
1 11 11 An
0 JOY,/Y/
$ 363,900
57,565
584,699
1,362,399
$ 2,368,563
$ 3,153,853
510,483
23,791
$ 534,274
$ 237,232
42,278
/_iy,JIV
$ 538,197
$ 136,862
O ACI-
0
CL
0 1-+J,J 1 O
$ 959,137
177,573
584,699
43,912,321
1,362,399
$ 46,996,129
$ 321,862
60,768
ID JOG,O-IV
$ 55,065,636 $ 1,232,327
$ 246,111
827,647
69,455
$ 1,143,213
29,121
$ 29,121
$ 67,754,115 $ 34,676,128 $ 2,647,101 $ 14,192,482 $ 119,269,826 $ 1,715,374
708,973
21,155,890
$ 89,618,978
Difference between business -type adjustments to assets and liabilities
Net position of business -type activities
150,000
951,739
11,396,835
$ 47,174,702
841,323
3,200,650
$ 6,689,074
415,854
1,508,044
$ 16,116,380
See Accompanying Notes to the Basic Financial Statements.
150,000
2,917,889
37,261,419
159,599,134
482,896
$ 160,082,030
5,345,510
$ 7,060,884
Business -Type Activities
Non -Major
Total
Sewer
Water
Solid Waste
Enterprise
Enterprise
Internal
Fund
Fund
Fund
Funds
Funds
Service Funds
$ 268,118
$ 351,566
$ 147,889
$ 69,072
$ 836,645
$ 53,639
44,433
115,178
30,728
62,851
253,190
32,958
293,093
-
2,793
-
295,886
-
543,841
459,941
258,880
-
1,262,662
-
-
-
-
-
-
763,100
726,360
-
-
126,764
853,124
-
3,538,000
685,000
-
-
4,223,000
-
-
-
345,000
-
345,000
-
$ 5,413,845
$ 1,611,685
$ 785,290
$ 258,687
$ 8,069,507
$ 849,697
$ 316,958
77,730
38,101,000
$ 41,047
5,811,321
$ 38,495,688 $ 5,852,368
$ 43,909,533
$ 49,918
23,906
$ 73,824
m 17 ALA ncn
$ 59,331
317,164
1 11 11 An
0 JOY,/Y/
$ 363,900
57,565
584,699
1,362,399
$ 2,368,563
$ 3,153,853
510,483
23,791
$ 534,274
$ 237,232
42,278
/_iy,JIV
$ 538,197
$ 136,862
O ACI-
0
CL
0 1-+J,J 1 O
$ 959,137
177,573
584,699
43,912,321
1,362,399
$ 46,996,129
$ 321,862
60,768
ID JOG,O-IV
$ 55,065,636 $ 1,232,327
$ 246,111
827,647
69,455
$ 1,143,213
29,121
$ 29,121
$ 67,754,115 $ 34,676,128 $ 2,647,101 $ 14,192,482 $ 119,269,826 $ 1,715,374
708,973
21,155,890
$ 89,618,978
Difference between business -type adjustments to assets and liabilities
Net position of business -type activities
150,000
951,739
11,396,835
$ 47,174,702
841,323
3,200,650
$ 6,689,074
415,854
1,508,044
$ 16,116,380
See Accompanying Notes to the Basic Financial Statements.
150,000
2,917,889
37,261,419
159,599,134
482,896
$ 160,082,030
5,345,510
$ 7,060,884
CITY OF CAPE GIRARDEAU. MISSOURI
STATEMENT OF FIDUCIARY NET POSITION
ASSETS
ASSETS:
June 30, 2024
Pooled Cash and Investments $ 2,909,270
Restricted Cash and Cash Equivalents 474,491
Receivables:
Real Estate Taxes, Net 386,713
Grants 107,647
Other 50,527
Prepaid Items 22,675
TOTAL ASSETS $ 3,951,323
LIABILITIES
LIABILITIES:
Accounts Payable $ 47,822
Salaries and Benefits Payable 23,051
Deferred Revenues 376,469
Funds Held for Agency Funds 3,503,981
TOTAL LIABILITIES $ 3,951,323
See Accompanying Notes to the Basic Financial Statements.
22
CITY OF CAPE GIRARDEAU, MISSOURI
STATEMENT OF CHANGES IN
FIDUCIARY NET POSITION
Year Ended June 30, 2024
ADDITIONS
Taxes $ 2,107,703
Intergovernmental 546,072
Other Fees and Charges 99,400
Miscellaneous 31,629
Investment Revenue 185,911
TOTAL REVENUES $ 2,970,715
Personnel Services
$ 983,011
Contractual Services
310,980
Materials and Supplies
192,207
General Operating Expenses
239,621
Debt Service:
Interest
46,176
Principal
650,000
TOTAL EXPENDITURES
$ 2,421,995
CHANGE IN NET POSITION
$ 548,720
ASSETS/LIABILITIES, July 1, 2023
3,402,603
ASSETS/LIABILITIES, June 30, 2024
$ 3,951,323
See Accompanying Notes to the Basic Financial Statements.
23
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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.
24
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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.
25
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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 government -wide
financial statements. Exceptions to this general rule are payments -in -lieu of taxes and other
charges between the City's enterprise function and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
It is the City's policy to first use restricted net resources prior to the use of unrestricted net
resources when an expense is incurred for purposes for which both restricted and unrestricted net
resources are available.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the City's enterprise funds and of the City's internal service funds
are charges to customers for sales and services. Operating expenses for enterprise funds and
internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as non-operating revenues and expenses.
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.
27
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, 2024 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.
29
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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/Pavables
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.
30
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, thirty-nine 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, 2024, those costs totaled $682,748.
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,
2024.
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, 2024 all infrastructures completed during the fiscal year, including
projects started in a previous year, were recorded at their historical costs.
31
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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 December 24, 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, 2024, and reported at fair value,
are as follows:
Deposits:
Demand Deposits $ 389,487
Interest Bearing Deposit Accounts 106,587,163
Total Deposits $106,976,650
Investments:
Negotiable Instruments $ 10,373,788
Total Investments $ 10,373,788
Accrued Interest Revenue $ 62,244
Total Pooled Deposits and Investments 117.412.482
As of June 30, 2024, the City had the following pooled investments:
Investments Maturities Fair Value
Negotiable Instruments 08/05/24 — 05/10/29 $10,373,788
Total $10,373,788
Reconciliation of Pooled Cash and Investments to Statements:
Governmental Pooled Cash and Investments $ 79,589,081
Business -type Pooled Cash and Investments 34,914,331
Fiduciary Pooled Cash and Investments 2,909,270
Total Pooled Cash and Investments117,412,682
32
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, 2024, and reported at fair value, are as
follows:
Deposits:
Investments:
Interest Bearing Deposit Accounts $5,562,454
Total Deposits $5,562,454
U. S. Treasury Note $ 404,678
Total Investments $ 404,678
Total Non -pooled Deposits and Investments 5967 132
As of June 30, 2024, the City had the following non -pooled investments
U. S. Treasury Note 01/02/24 — 11/30/24 $ 404,678
Total $ 404,678
Reconciliation of Non -pooled Deposits and Investments to Statements:
Governmental Investments $ 404,678
Business -type Restricted Cash and Cash Equivalents 5,087,963
Fiduciary Cash and Cash Equivalents 474,491
Total Non -pooled Deposits and Investments $5,967,132
Custodial Credit Risk:
Deposits in financial institutions, reported as components of cash, cash equivalents, and
investments, had a bank balance of $114,019,343 at June 30, 2024, 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, 2024 are provided above.
33
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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 -parry 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, 2024, the
City had no concentration of credit risk.
NOTE C — LEASE RECEIVABLE
LEASES:
Lease (Lessor) agreements are summarized as follows:
34
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE C - LEASE RECEIVABLE - continued
The City's leasing operations consist of leasing land, airport hangers, 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
Total Deferred
Balance
Description
Date
Terms
Amount
Interest Rate
Inflows
June 30, 2024
Larry Eftink Farms
1/1/2022
5 years
$ 57,781
3.25%
$ 152230
$ 157,975
Crown Castle
12/7/1998
45 years
4,564
3.25%
317,164
340,144
Now-Verticale Bridge
1/1/2006
25 years
8,362
3.25%
45273
58,024
Nemiesis Flight Ops
2/1/2015
25 years
3281
3.25%
59250
66259
DSW Signs, LLC
1/31/2021
20 yers
2,137
3.25%
45,632
46,833
Republic Services
12/15/2014
20 years
40,592
3.25%
510,483
533,152
Total Lease Revenue
$ 1202,387
The City's leasing operations consist of leasing land, airport hangers, 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
2025
$ 124,530
$ 35,827
2026
128,630
31,815
2027
99,704
29,266
2028
71,694
27,061
2029
74,052
24,704
2030-2034
363,804
87,325
2035-2039
151,527
43,513
2040-2044
109,294
24,209
2045-2047
79,152
5,279
1.202.387
$ 308,999
NOTE D - PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on
August 21, 2023, 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:
35
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE D — PROPERTY TAXES — continued
General Revenue $.3042/100.00 assessed valuation
Public Health .0570/100.00 assessed valuation
Special Business District .6789/100.00 assessed valuation
#2 (Ad Valorem)
Property tax receivable balances as of June 30, 2024 are as follows:
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, 2024 is as follows:
General
Public
Current Year
Revenue
Health
Total
Current property tax
$101,950
$18,944
$120,894
Delinquent property tax
291,873
54,688
346,561
Reserve for doubtful
$ 6,950,644
Buildings
45,008,895
property taxes
(12,449)
(2,331)
(14,780)
Net property tax receivable
$ 381,374
$ 71,301
$ 452,675
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, 2024 is as follows:
Total capital assets $228,230,023 $37,002,864 $(13,296,579) $(11,329,141) $240,607,167
* 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.
36
Balance
Current Year
Balance
July 1, 2023
Additions
Deductions
Depreciation*
6/30/2024**
Land
$ 7,151,514
$ 130
$ (201,000)
$ -
$ 6,950,644
Buildings
45,008,895
7,114,646
(155,340)
(2,055,014)
49,913,187
Land improvements
17,844,207
442,960
(6,600)
(950,714)
17,329,853
Equipment
13,207,121
1,402,814
(53,849)
(2,416,828)
12,139,258
Infrastructure
130,966,482
6,201,465
-
(5,906,585)
131,261,362
Construction in progress
14,051,804
21,840,849
(12,879,790)
-
23,012,863
Total capital assets $228,230,023 $37,002,864 $(13,296,579) $(11,329,141) $240,607,167
* 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.
36
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, 2024 is as follows:
Total capital assets $171,602,535 $ 8,703,226 $ (3,523,451) $ (7,669,764) $169,112,546
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrative $ 32,740
Development Services 682,226
Parks and Recreation 1,837,957
Public Safety 1,044,375
Public Works 8,345,843
Total 11,943,141
Business-Tvae Activities:
Golf Course $ 141,526
Sewer 4,433,311
Sporting Complexes 276,669
Sportsplex 321,365
Solid Waste 370,777
Water 2,126,116
Total 7,669,764
37
Balance
Current Year
Balance
July 1, 2023
Additions
Deductions Depreciation*
June 30, 2024
Land
$ 1,985,018
$ -
$ - $ -
$ 1,985,018
Buildings
14,064,818
-
- (482,084)
13,582,734
Improvements other
than buildings
146,421,275
4,271,484
- (6,318,693)
144,374,066
Equipment
6,768,648
171,798
(107,960) (868,987)
5,963,499
Construction in progress
2,362,776
4,259,944
(3,415,491) -
3,207,229
Total capital assets $171,602,535 $ 8,703,226 $ (3,523,451) $ (7,669,764) $169,112,546
Depreciation expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Administrative $ 32,740
Development Services 682,226
Parks and Recreation 1,837,957
Public Safety 1,044,375
Public Works 8,345,843
Total 11,943,141
Business-Tvae Activities:
Golf Course $ 141,526
Sewer 4,433,311
Sporting Complexes 276,669
Sportsplex 321,365
Solid Waste 370,777
Water 2,126,116
Total 7,669,764
37
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, 2024:
Government
Activities
Debt payable June 30, 2023
Discount/Premium
Amortization
Issued
Retired
Debt payable June 30, 2024
Other
Debt*
Total
$ 41,553,024 $ 41,553,024
(50,606)
(2,924,536)
$ 38,577,882
*Other Debt includes Notes Payable and Special Obligation Bonds.
(50,606)
(2,924,536)
$ 38,577,882
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, 2024:
Business -Type
Activities
Debt payable June 30, 2023
Discount/Premium
Amortization
Issued
Retired
Debt payable June 30, 2024
Other Revenue
Debt* Bonds Total
$ 2,042,864 $ 52,317,308 $ 54,360,172
(335,465)
$ 1,707,399
*Other Debt includes Special Obligation Bonds
(65,987)
(4,116,000)
$ 48,135,321
(65,987)
(4,451,465)
$ 49,842,720
Bonds payable for governmental and business -type activities at June 30, 2024 are comprised of
the following individual issues:
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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
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
$18,508,000
$1,514,820
529,657
$20,552,477
Sewerage System Revenue Bonds through the State of Missouri — Direct Loan Programs were
issued by the City on June 19, 2012. A 1% administrative fee and a 1.43% interest rate were
originally charged on this loan. Effective January 1, 2018 the administrative fee was reduced to
.5%. Principal was disbursed on this loan as needed.
The proceeds of the bond issue were used to acquire, construct, extend, and improve the existing
sewerage system.
Principal payments are made annually on July 1, while interest payments are made semi-annually
on January 1 and July 1.
39
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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
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
1,928,000
152,462
54,842
2,135,304
Sewerage System Revenue Bonds through the State of Missouri - Direct Loan Programs were
issued by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were
originally charged on this loan. Effective January 1, 2018 the administrative fee was reduced to
.5%. Principal was disbursed on this loan as needed.
The proceeds of the bond issue were used to acquire, construct, extend, and improve the existing
sewerage system.
Principal payments are made annually on July 1, while interest payments are made semi-annually
on January 1 and July 1.
M
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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
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
$21,203,000
$1,682,435
605,192
$23,490,627
Sewerage System Revenue Bonds through the State of Missouri — Direct Loan Programs were
issued by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were
originally charged on this loan. Effective January 1, 2018 the administrative fee was reduced to
.5%. Principal was disbursed on this loan as needed.
The proceeds of the bond issue were and will be used to acquire, construct, extend, and improve
the existing sewerage system.
Principal payments are made annually on July 1, while interest payments are made semi-annually
on January 1 and July 1.
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.
41
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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
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
3,690,000
293,528
3 983 528
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.
42
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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
June 30,
Rate
2025
2.000%
2026
2.000%
2027
2.125%
2028
3.000%
2029
4.000%
2030
4.000%
2031
3.000%
2032
3.000%
2033
3.000%
2034
3.000%
2035
3.000%
2036
3.125%
Total
53,238
Principal Interest
Due
Due
Total
$ 1,420,000
$ 371,518
$ 1,791,518
1,460,000
343,119
1,803,119
1,505,000
313,919
1,818,919
1,550,000
281,937
1,831,937
1,625,000
235,438
1,860,438
1,715,000
170,437
1,885,437
1,190,000
101,838
1,291,838
430,000
66,137
496,137
450,000
53,238
503,238
470,000
39,737
509,737
490,000
25,638
515,638
350,000
10,937
360,937
12,655,000
$2,013,893114.668.893
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.
43
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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
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
$2,547,445
ILL257.445
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 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.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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
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
2.460%
6,220,000
915,350
7,135,350
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
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
$14,835,000
2,124,95716,959,957
45
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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 $4,692,032 for the
governmental and business -type activities, respectively.
The cash and investments available to service the special obligation bonds are $-0- and $11,884 in
governmental activities and business -type activities, respectively.
The annual requirements to amortize all debt outstanding as of June 30, 2024 including total
interest payments of $11,244,890 and total administrative fees of $1,189,691 are as follows:
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE F - LONG-TERM OBLIGATIONS - Continued
Revenue
Special
Year Ending
Obligation
June 30,
Bonds
2025
$ 4,457,770
2026
4,149,329
2027
4,165,447
2028
4,168,573
2029
4,195,044
2030
4,217,683
2031
5,375,748
2032
4,923,190
2033
4,737,063
2034
4,069,456
2035
2,049,583
2036
360,937
Total
$ 46,869,823
Revenue
$ 833,922
Bonds
Total
$ 5,208,553
$ 9,666,323
5,223,256
9,372,585
5,242,331
9,407,778
5,257,543
9,426,116
5,278,587
9,473,631
5,292,134
9,509,817
5,310,306
10,686,054
5,327,924
10,251,114
4,456,949
9,194,012
4,476,007
8,545,463
2,240,168
4,289,751
-
360,937
$ 53,313,758
$100,183,581
Interest expense was charged to functions as follows in the statement of activities:
Governmental Activities:
Interest and Other Costs $1,083,966
Total $1,083,966
Business-Tvae Activities:
Sewer
$ 833,922
Solid Waste
49,195
Water
155,481
Total
$1,038,598
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 $40,062,661.
47
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, 2024,
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 was paid in full during the year ended June 30, 2024.
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.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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. 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, 2024 the following employees were covered by the benefits terms:
Retirees and Beneficiaries 324
Inactive, Non -retired Members 231
Active Members 318
Total 873
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 9.1% (General),
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE I — PENSION PLAN - continued
11.5% (Police), 11.1% (Public Safety), and 18,5% (Fire) of annual covered payroll.
The original annual required contribution (ARC) was determined as part of the February 28, 2022
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, 2024, and the total pension liability used
to calculate the net pension asset was determined by an actuarial valuation as of February 29, 2024.
6. Actuarial Assumptions
The total pension liability in the February 29, 2024 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 29, 2024 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:
50
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE I — PENSION PLAN - continued
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. Chanp-es in the Net Pension Asset
Balances at 6/30/2023
Changes for the year:
Service cost
Interest
Change in Benefit Terms
Difference between expected
and actual experience
Contributions - employer
Net investment income
Benefit payments, including refunds
Administrative expense
Other changes
Net changes
Balances at 6/30/2024
Increase (Decrease)
Plan Fiduciary Total Pension Net Pension
Net Position Liability Asset
(a) (b) (a) - (b)
$ 120,927,533 $ 110,132,170 $ 10,795,363
- 2,212,117
- 7,587,073
- 1,609,728
- 2,298,133
2,225,217
6,219,424
(5,763,020)
(105,815)
24,157
2,599,963
123,527,496
51
(5,763,020)
7,944,031
118,076,201
(2,212,117)
(7,587,073)
(1,609,728)
(2,298,133)
2,225,217
6,219,424
(105,815)
24,157
(5,344,068)
5,451,295
Weighted Average
Target
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Alpha
5.00%
2.37%
Equity
39.00%
5.37%
Fixed Income
23.00%
1.47%
Real Assets
33.00%
3.45%
Strategic Assets
7.00%
3.46%
Cash/Leverage
-7.00%
-0.26%
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. Chanp-es in the Net Pension Asset
Balances at 6/30/2023
Changes for the year:
Service cost
Interest
Change in Benefit Terms
Difference between expected
and actual experience
Contributions - employer
Net investment income
Benefit payments, including refunds
Administrative expense
Other changes
Net changes
Balances at 6/30/2024
Increase (Decrease)
Plan Fiduciary Total Pension Net Pension
Net Position Liability Asset
(a) (b) (a) - (b)
$ 120,927,533 $ 110,132,170 $ 10,795,363
- 2,212,117
- 7,587,073
- 1,609,728
- 2,298,133
2,225,217
6,219,424
(5,763,020)
(105,815)
24,157
2,599,963
123,527,496
51
(5,763,020)
7,944,031
118,076,201
(2,212,117)
(7,587,073)
(1,609,728)
(2,298,133)
2,225,217
6,219,424
(105,815)
24,157
(5,344,068)
5,451,295
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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%
$(11,280,229) $5,451,295 $19,229,241
9. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended June 30, 2024 the City recognized pension expense of $4,302,410. The
employer reported deferred outflows and inflows of resources related to pensions from the
following sources:
Amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended:
2025
$ (210,939)
2026
Net
2027
Deferred
Deferred
Outflows
2029
Outflows
Inflows
(Inflows)
Total
of Resources
of Resources
of Resources
Differences in experience
$ 4,718,175
$ (822,441)
$ 3,895,734
Differences in assumptions
-0-
(399,074)
(399,074)
Excess (deficit) in investment returns
3,475,868
(21,639)
3,454,229
Total
8.194.043
(1.243.154)
6.950.889
Amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended:
2025
$ (210,939)
2026
4,117,279
2027
1,972,978
2028
826,162
2029
226,031
Thereafter
19,378
Total
6.950.889
52
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE I — PENSION PLAN - continued
10. Payable to the Pension Plan
At June 30, 2024 the City reported a payable of $168,856 for the outstanding amount of
contributions to the pension plan required for the year ended June 30, 2024.
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 $9,833,499 and $516,222, 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.
53
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE J — POSTRETIREMENT HEALTHCARE BENEFITS - Continued
3. Employees Covered by Benefit Terms
As of June 30, 2024, the following employees were covered by the benefit terms:
Retirees 39
Active 98
Total 137
4. Total OPEB Liability
The City's total OPEB liability of $9,833,499 was measured as of June 30, 2024, and was
determined by an actuarial valuation date of June 30, 2023 with results actuarially projected to the
June 30, 2024 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, 2023 actuarial valuation
Discount Rate - 4.21 % as of June 30, 2024 and 4.13% as of June 30, 2023
Healthcare cost trend rates - Medical / Rx cost trend rate of 8.0% for 2024, gradually decreasing
to an ultimate rate of 4.5% for 2032 and beyond
Dental cost trend rate of 4.0% for 2025 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.
54
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE J — POSTRETIREMENT HEALTHCARE BENEFITS - Continued
6. Changes in the Total OPEB Liability
Balance at June 30, 2023
$ 8,990,936
Changes for the Year:
Service Cost
167,959
Interest on Total OPEB Liability
362,673
Change of Benefit Terms
-0-
Effect of Economic/Demographic Gains or Losses
539,511
Effect of Assumptions Changes or Inputs
535,052
Benefit Payments
(762,632)
Net Changes
842,563
Balance at June 30, 2024
9.833,499
7. Sensitivity Analysis
The following presents the total OPEB liability of the City, calculated using the discount rate of
4.21%, 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 (5.21 %) or lower (3.21 %) than the current rate.
Sensitivity ofNet OPEB Liability as of June 30, 2024
to the Healthcare Cost Trend Rate Assumption
Healthcare Cost
I% Decrease
Net OPEB liability $ 10,556,563
Trend Rates
Rate Assumption
$ 9,833,499
1% Increase
$ 9,170,479
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.
Sensitivity ofNet OPEB Liability as of June 30, 2024
to the Healthcare Cost Trend Rate Assumption
I% Decrease
Net OPEB liability $ 9,100,273
55
Healthcare Cost
Trend Rates
Rate Assumption
$ 9,833,499
1% Increase
$10,656,683
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, 2024, the City recognized OPEB expense of $516,222. At June 30,
2024, 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 $ 835,029
$ (699,242)
Changes of assumptions or other inputs 508,130
(426,758)
Total 1343159
(1.126.000)
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:
2025
$ (157,180)
2026
(186,153)
2027
345,577
2028
214,915
2029
-0-
Thereafter
-0-
Total
$ 217,159
NOTE K - INTEREST EXPENSE
Interest and handling charges totaling $1,129,900, excluding $222,767 of inter -fund interest, were
incurred by governmental funds during the year ended June 30, 2024. Interest and handling
charges totaling $1,038,598, excluding $8,871 of inter -fund interest, were incurred by proprietary
funds during the year ended June 30, 2024. 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.
56
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE L - INTER -FUND ACTIVITY
A. The following is a summary of inter -fund transfers for the year ended June 30, 2024:
Fund
General Fund
Park and Recreation Fund
Convention and Tourism Fund
General Capital Improvements Fund
Park & Development Foundation
Public Safety Trust Fund II
Casino Revenue Fund
Riverfront Region Economic Dev Fund
Motor Fuel Tax Fund
Park/Storm Water Sales Tax - Cap
Fire Sales Tax
Parks/Storm Water Sales Tax
Capital Improvements Sales Tax
Airport Fund
Health Fund
Sewer System Improvements
Community Development Black Grant Projects
Stormwater System Improvements Ph 2
Sewer Fund
Water Fund
Indoor Sportsplex
Sporting Complexes
Park System Improvements Ph 2
Equipment Replacement
57
Transfer From
Transfer To
$ 4,803,797
$ 6,319,985
6,748
1,716,334
68,471
-
-
36,748
97,349
-
1,633,018
3,266,034
607,360
-
-
207,360
1,400,000
-
4,623,862
-
3,266,034
-
1,676,121
-
1,116,033
400,000
-
687,106
-
109,075
2,876,317
-
10,933
-
-
103,256
3,350
4,552,439
-
1,116,033
-
68,471
-
749,718
-
2,853,484
z zcn
$ 22,189,393 $ 2"2,189,,393
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE L - INTER -FUND ACTIVITY - Continued
B. The following is a summary of inter -fund balances as of June 30, 2024:
Advance to/from other funds:
Advances from Advances to
Casino Revenue Fund $ 1,819,760 $ -0-
Airport Fund -0- 1,235,061
Solid Waste Fund -0- 584,699
1,819,760 1,819,760
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 $767,557 and long-term advance receivables of
$1,819,760 are also reflected as non -spendable fund balances.
Restricted Fund Balance — Includes amounts that can be spent only for specific purposes because
of restrictions by external parties, constitutional provisions, or enabling legislation. These financial
statements include the following restricted fund balances. Fund balances totaling $5,074,309 are
restricted by the City Charter to use during officially declared emergencies. Special revenue fund
balances totaling $46,077,833 are restricted by their enabling legislation. $2,098,081 in capital
project fund balances are restricted as the result of special revenue transfers and unspent bond
proceeds.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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.
59
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE M — GOVERNMENTAL FUND BALANCES REPORTING — Continued
At June 30, 2024, net position restricted for depreciation and replacement was $150,000 for the
City's Water Fund, and net position restricted for emergencies were $708,973, $951,739,
$841,323, $112,007, $138,188 and $165,659 for the City's Sewer, Water, Solid Waste, Golf
Course, Indoor Sporting Complex, and Sporting Complex, respectively.
At June 30, 2024, the City's Sewer Fund had restricted cash equivalents in sinking reserve funds
for Revenue Bonds in the amount of $4,357,232.
General Airport
Non -Major
Fund Fund
Funds
Total
Fund balances
Nons pe ndable :
Prepaid expenses
$ 304,773 $ 22,953
$ 439,831
$ 767,557
Long-term advance
- -
1,819,760
1,819,760
Mausoleum
104,365 -
-
104,365
Restricted for:
Emergencies
4,468,402 -
605,907
5,074,309
Undistributed TIF revenue
85,461 -
-
85,461
Convention and tourism
- -
5,556,580
5,556,580
Public safety
- -
656,564
656,564
Street projects
- -
24,466,535
24,466,535
Sewer system projects
- -
6,461,705
6,461,705
Parks and recreation
- -
3,326,428
3,326,428
Other capital projects
- -
7,622,641
7,622,641
Committed:
Other capital projects
- -
4,377,231
4,377,231
Assigned to:
Airport
- 976,496
-
976,496
Parks and recreation
- -
1,780,419
1,780,419
Operations and MTCE
- -
824,300
824,300
Encumbrances
76,329 -
-
76,329
Public safety
- -
731,991
731,991
Unassigned:
16,018,459 -
(302,890)
15,715,569
$21,057,789 $ 999,449
$ 58,367,002
$80,424,240
NOTE N - PROPRIETARY FUNDS RESTRICTED NET
POSITION AND RESTRICTED
CASH EQUIVALENTS AND INVESTMENT
At June 30, 2024, net position restricted for depreciation and replacement was $150,000 for the
City's Water Fund, and net position restricted for emergencies were $708,973, $951,739,
$841,323, $112,007, $138,188 and $165,659 for the City's Sewer, Water, Solid Waste, Golf
Course, Indoor Sporting Complex, and Sporting Complex, respectively.
At June 30, 2024, the City's Sewer Fund had restricted cash equivalents in sinking reserve funds
for Revenue Bonds in the amount of $4,357,232.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE O - LANDFILL CLOSURE AND POSTCLOSURE CARE COST
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.
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.
61
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE P - RISK MANAGEMENT - Continued
The City provided health coverage to its employees through a self-insured plan administered by
Crescent Health Solutions. Under the plans, the City paid the administrator a monthly premium
for claims administration, cost management and specific and aggregate stop loss coverage (handled
by Symetra — a third party). The City reimbursed the administrator for claims paid up to the
specific stop loss amount of $100,000 per employee during each calendar year included in the
current fiscal year.
Brentwood Service Administrators administers the City's workers' compensation plan. Under this
plan, the City pays the administrator a flat quarterly 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 (Public Safety)
and $500,000 for other regular employees and per occurrence claims liability to $1,000,000. Rates
are charged by the internal service fund to the other City funds based on rates and experience
factors established by the National Council on Compensation Insurance and City of Cape
Girardeau actual claims trends.
Claims liability is estimated using data supplied by the administrator. The claims activity during
the last five years is summarized as follows:
62
NOTE P - RISK MANAGEMENT - Continued
CLAIMS LIABILITIES RECONCILIATION
Health
Workers'
$ 643,000
Insurance
Compensation
Total
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
Provisions for Incurred Claims
4,161,760
703,398
4,865,158
Payment of Claims
(4,145,760)
(618,298)
(4,764,058)
Balance June 30, 2024
$ 307,E
$ 456,E
763,100
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.
At June 30, 2024, utility receivables totaled $2,769,609. On the financial statements, the utility
receivables are shown net of the allowance for doubtful accounts of $75,601. This results in net
utility receivable of $2,694,008. During the year ended June 30, 2024, the allowance was
decreased by $11,951 and accounts totaling $114,792 were written off.
63
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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, 2024, the City had construction commitments outstanding of $7,353,740. 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, 2024, the City had encumbrances outstanding of $12,345,272.
NOTE S — PRIOR PERIOD ADJUSTMENTS
The net position of the governmental activities and the fund balance of the Parks and Recreation
Fund were increased by $64,207 as of June 30, 2024, from transactions that occurred in previous
years. Revenues and expenditures for the Jefferson Pool and Central Pool were not finalized until
2024 for the June 30, 2023 fiscal year. Therefore the City was unable to measure the receivable
expected from the school district until this time.
M.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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 $12,708 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.
This project involved the conversion of the former Sears facility into a call center for
National Asset Recover Services (MARS) 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.
65
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE U — CONTINGENCY - continued
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, 2024, the City incurred payments of $92,854 under
the development agreement. This amount is included in the Development Services
expenses on the statement of activities.
2. In June 2004, the City of Cape Girardeau and Cape Girardeau County entered into a
development agreement with a local real estate developer. Under the agreement, the local
developer agreed to pay for certain public improvements incurred in conjunction with the
development of a 60 acre retail development, and the City and County agreed to reimburse
the local business for the $2,998,434 cost of these improvements plus 4% interest with
quarterly payments from available net sales tax revenue generated from any businesses
operations located in the development.
Available revenue is defined by the agreement as all the net sales tax revenue generated 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.
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE U - CONTINGENCY — Continued
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, 2024 the City incurred payments of $152,031 under
the development agreement. This amount is included in the Development Services
expenses on the statement of activities.
3. 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.
67
City of Cape Girardeau, Missouri
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
NOTE U - CONTINGENCY — Continued
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 I% general sales tax and two .25% capital improvement sales
taxes relating to the operations of the hotel, restaurant, and conference center. One of the
capital improvement sales taxes has an expiration date that could occur before the total
costs of the improvements are reimbursed to the developer. No provision is made to replace
revenues from the City sales taxes that expire if they are not extended. The development
agreement expires 20 years from December 31, 2017, or as soon as the City has completely
reimbursed the Company for the total of reimbursable costs, if that happens first.
The City is obligated only to make quarterly payments as may lawfully be made from funds
budgeted and appropriated for that purpose by the City. During the fiscal year ended June
30, 2024, the City incurred $99,532 under the development agreement.
NOTE V — DEFICIT FUND BALANCE
The City has a deficit fund balance at June 30, 2024 as follows:
Deficit Fund
Balance
Park Systems Improvements Phase II Fund $302,890
REQUIRED SUPPLEMENTAL INFORMATION
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2024
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.
The City Manager submits to the City Council a proposed operating budget for the
fiscal year ending the following June 30th at the first meeting of June each year. The
operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to July 1, the budget is legally enacted through passage of an ordinance.
4. The City Manager is authorized to transfer budgeted amounts between programs within
any department; however, any revisions that alter the total appropriations of any
department must be approved by the City Council. Departments may not legally exceed
their appropriations without approval from the City Council. Appropriations expire at
the end of the year; however, outstanding encumbrances at the end of the year are
honored by the City.
5. Formal budgetary integration is employed as a management control device during the
year for all funds.
6. Budgets for all funds are adopted on a budgetary basis.
7. If, during the fiscal year, the City Manager certifies there are additional revenues to
appropriate, unencumbered appropriation balances within a department, or there is an
emergency situation, the City Council may amend the initial budget by ordinance. The
initial budget was adopted by the City Council on June 20, 2023 and amended on
September 18, 2023; November 6, 2023; January 8, 2024; and October 7, 2024. The
initial budget and final amended budget are both reflected in the financial statements.
71
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2024
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:
72
General Fund
Airport Fund
GAAP Basis Net Income
$
5,589,807
(2,056,540)
Increase due to:
Prior 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
Encumbrance Revenue
(81,701)
(61,265)
Adjust investments due to Market
(12,457)
(8,569)
$
59,326
$ 248,851
Decrease due to:
Current Year -End Encumbrances
Administrative Services
-
-
Development Services
8,030
3,770
Parks & Recreation
-
-
Public Safety
6,361
-
Public Works
21,460
-
Capital Outlay
40,478
3,079,292
Advance Repayment
-
86,998
Encumbrance Revenue
(77,337)
251,213
Adjust investments due to Market
(1,577)
(470)
$
(2,585)
3,420,803
Budget Basis Net Income
$
5,651,718
$ (5,228,492)
72
City of Cape Girardeau, Missouri
NOTES TO BUDGETARY COMPARISON SCHEDULES
June 30, 2024
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.
73
SUPPLEMENTAL INFORMATION
ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REOUIRED 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 each of the City of Cape Girardeau, Missouri's major federal programs
for the year ended June 30, 2024. The City of Cape Girardeau, Missouri's major federal programs
are identified in the summary of auditors' results section of the accompanying Schedule of
Findings and Questioned Costs.
In our opinion, the City of Cape Girardeau, Missouri complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material effect on
each of its major federal programs for the year ended June 30, 2024.
Basis for Opinion on Each 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.
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 each of the City of Cape Girardeau, Missouri's federal programs.
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 each 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.
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
December 24, 2024
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,
2024, 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
December 24, 2024.
Retort on Internal Control over Financial Retorting
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.
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
December 24, 2024
City of Cape Girardeau, Missouri
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2024
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, 2024. The information in this Schedule is
presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial
position, changes in net assets, or cash flows of the City of Cape Girardeau, Missouri
B. Basis of Presentation:
The Schedule is presented in accordance with the Uniform Guidance, which defines federal
financial assistance "...assistance that non-federal entities receive or administer in the form
of grants, loans, loan guarantees, property (including donated surplus property),
cooperative agreements, interest subsidies, insurance, food commodities, direct
appropriations, and other assistance, but does not include amounts received as
reimbursement for services rendered to individuals."
C. Basis of Accounting:
The Schedule is presented on the modified accrual basis of accounting, which recognizes
expenditures when liabilities for goods and services are incurred. This is the same basis of
accounting presented in the financial statements.
D. Indirect Cost Rate:
The City's grant programs involve reimbursement of the City's actual costs of
administering the programs, and therefore, the City is not reimbursed for indirect costs and
does not apply any indirect cost rate.
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City of Cape Girardeau, Missouri
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2024
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
21.027 Covid-19 — Coronavirus State and
Local Fiscal Recovery Funds
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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 OUESTIONED COSTS:
No findings or questioned costs were noted that are required to be reported.
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 30, 2024
1. FINANCIAL STATEMENT FINDINGS:
No financial statement findings were noted that were required to be reported..
2. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No federal findings were noted that were required to be reported.
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