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HomeMy WebLinkAbout2024-2025.AuditReport CITY OF CAPE GIRARDEAU, MISSOURI Cape Girardeau, Missouri For the Year Ended June 30, 2025 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 24-66 REQUIRED SUPPLEMENTAL INFORMATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND 67 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL AIRPORT FUND 68 NOTES TO BUDGETARY COMPARISON SCHEDULES 69-71 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – GENERAL DIVISION 72 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – POLICE DIVISION 73 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – FIRE DIVISION 74 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – PUBLIC SAFETY DIVISION 75 SCHEDULE OF EMPLOYER CONTRIBUTIONS 76 SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY AND RELATED RATIOS 77 SUPPLEMENTARY INFORMATION COMBINING BALANCE SHEET-NONMAJOR GOVERNMENTAL FUNDS 78-79 COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 80-81 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 82-84 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 85-86 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 87-89 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 90 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 91-92 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 93 1 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, 2025, 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, 2025, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Cape Girardeau, Missouri and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 2 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 67 through 77 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, 3 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 the schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. This information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison fund financial statements, combining nonmajor fund financial statements, and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2026 on our consideration of the City of Cape Girardeau, Missouri’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Cape Girardeau, Missouri’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Cape Girardeau, Missouri’s internal control over financial reporting and compliance. BEUSSINK, HEY, ROE & STRODER, L.L.C. Cape Girardeau, Missouri January 29, 2026 REQUIRED SUPPLEMENTARY INFORMATION CITY OF CAPE GIRARDEAU, MISSOURI 4 As management of the City of Cape Girardeau, Missouri, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City as of and for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the financial statements and related footnotes. Financial Highlights • The net position of the City at the close of the most recent fiscal year was $474.9 million. • The combined City’s governmental fund balance s totaled $87.1 million. Approximately 20% of this total amount, $17.5 million, may be used to meet the government’s ongoing obliga tions to citizens and creditors in accordance with the City’s fund designation and fiscal policies. • The City’ total net position increased $26.6 million, $12.7 million from the City’s “governmental activities”, and $13.9 million from the “business-type activities”. • At the end of the year, general fund balance r eserved for emergencies was $4.4 million. • The City’s long-term debt decreased by $8.4 million. Overview of the Financial Statements This discussion and analysis is 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 all of the City’s assets, liabilities, and deferred outflows and inflows of resources, with the difference between the four reported as net position. Net position is an important measure of the City’s overall financial health. The increases and decreases in net position can be monitored to determine whether the City’s financial position 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 (government 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 wo rks. The business-type activities of the City include sewer, water and solid waste utilities, golf course, indoor sports complex and outdoor spor ts complexes operations. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Cape Girardeau, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. (see page 6) CITY OF CAPE GIRARDEAU, MISSOURI 5 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 22 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 Fund 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. 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. The City of Cape Girardeau maintained 6 individual proprietary funds during the fiscal year. 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. Notes to the Financial Statements Notes provide additional information that is essential to a full understanding of the data provided in the government - wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also contains certain required supplementary information regarding budgetary and pension information. The combining statements for the nonmajor funds and internal service funds are presented immediately following the required supplementary information on pension benefits. CITY OF CAPE GIRARDEAU, MISSOURI 6 Government-Wide Financial Analysis Net position may serve as a useful indicator of the City’s financial position. As of June 30, 2025, assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by $474.9 million. Net Position The following table reflects the condensed schedule of net position as of June 30, 2025, and 2024. At the end of the fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. The largest portion of the City’s net position, $331.3 million (69.8%), reflects its investment in capital assets, e.g. land, construction in progress, buildings, improvements, machinery and equipment, infrastructure, less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City’s net position, $61.8 million (13.1%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the City’s net position, $81.2 million (17.1%), represents unrestricted net position that may be used to meet the City’s ongoing obligations to citizens and creditors. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Assets 2025 2024 2025 2024 2025 2024 Current and other Assets 101,788,714$ 92,685,869 45,218,363 38,566,802 147,007,077 131,252,671 Capital Assets 243,038,014 245,042,638 178,453,707 176,294,190 421,491,721 421,336,828 Total Assets 344,826,728 337,728,507 223,672,070 214,860,992 568,498,798 552,589,499 Deferred outflows of resources Deferred outflows of resources 10,157,081 8,692,014 1,267,565 845,188 11,424,646 9,537,202 Liabilities Long-Term obligations 42,063,288 45,785,602 41,723,329 46,411,430 83,786,617 92,197,032 Other Liabilities 10,038,110 9,724,087 7,974,442 8,069,507 18,012,552 17,793,594 Total Liabilities 52,101,398 55,509,689 49,697,771 54,480,937 101,799,169 109,990,626 Deferred inflows of resources Deferred inflows of resources 1,942,721 2,344,122 1,278,784 1,143,213 3,221,505 3,487,335 Net Position Net investment in capital assets 205,136,845 202,029,285 126,130,770 119,269,826 331,267,615 321,299,111 Restricted 58,556,072 53,250,223 3,263,556 3,067,889 61,819,628 56,318,112 Unrestricted 37,246,773 33,287,202 44,568,754 37,744,315 81,815,527 71,031,517 Total net position 300,939,690$ 288,566,710 173,963,080 160,082,030 474,902,770 448,648,740 Government activities Business-type activities Total City of Cape Girardeau Net Position CITY OF CAPE GIRARDEAU, MISSOURI 7 Governmental Activities Governmental activities increased the City’s net position by $12.7 million. Activity in the following revenue and expense items should be noted for the current fiscal year. Revenues Governmental Fund activities: • Total revenues from governmental activities totaled $74.6 million in 2025 and $81.7 million in 2024 decreasing $7.1 million due to a reduction in capital grants and contributions received during the fiscal year. • Taxes, the largest Governmental Revenue category, totaled $57.2 million in 2025 as compared to $56.6 million in 2024, representing a 1% increase. • Sales, Use, and Property taxes totaled $20.5 million, representing 36% of taxes and an increase of less than ½%. • Tax Initiative revenues representing Transportation Sales Tax, Capital Improvement Sales Tax, Parks/Stormwater Sales Tax, Fire Sales Tax totaled $30 million, representing 35.8% of the Taxes Revenue category and an increase of less than ½% in 2025. Expenses Governmental Fund activities: The largest expense of the Governmental Fund Activities is that of personnel pay and benefits. These expenditures increased $734,071 in 2025 representing a 3% increase as per the pay plan adopted by the City at the beginning of the fiscal year. Operational Governmental Fund Expenses increased $803,350 in 2025 (7%) from the previous year. The capital outlay for the current fiscal year decreased $8.5 million largely due to substantial completion of the Airport Terminal. Governmental Fund Activities included Debt Service principal and interest payments, totaling $4 million in 2025 and in 2024. Business-Type Activities Business-Type activities increased net position by $13.6 million. These proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. During the current fiscal year, the City experienced the following changes in its operating revenue: • Sewer - $778,277 increase over prior year. • Water - $584,970 increase over prior year. • Solid Waste - $439,137 increase over prior year. • Non-Major Funds (Golf Course, Indoor Sports Complex and Sports Complexes) $113,211 increase over prior year. Operating and Capital grants and contributions increased $2.1 million from the previous year. The City implemented rate increases in Residential Water, Residential Trash and Commercial Water of 5% at the beginning of the fiscal year. The operating expenditures for the propriety funds increased $679,395. CITY OF CAPE GIRARDEAU, MISSOURI 8 Financial Analysis of the City’s Governmental Funds As noted, the City of Cape Girardeau uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of June 30, 2025 the City’s governmental funds reported combined ending fund balances of $87.1 million, an increase of $7 million (8%) from the prior year. Unassigned fund balances which are available for spending at the City’s discretion, account for $17.4 million (20%) of the total fund balances. The remainder of the fund balances are classified as non-spendable, restricted, committed and assigned to indicate that they are not available for new spending and are detailed below: • Nonspendable $2.2 million because it is either not in a spendable form or legally or contractually required to be maintained intact • Restricted $58.6 million because it can be spent only for specific purposes due to restrictions by external parties, constitutional provisions or enabling legislation • Committed $5.7 million because it can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council • Assigned $3.2 million 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 the Fiscal year ending June 30, 2025 the unassigned fund balance was $19.6 million while the total fund balance was $24.6 million. As a measure of liquidity, it may be useful to compare total governmental unassigned fund balance to total governmental fund expenditures. Unassigned fund balance of total governmental fund balances totals $17.4 million and represents 29% of total governmental fund expenditures. Included in the restricted fund balance is $4.4 million which is the General Fund Reserve to meet the required City Charter emergency reserve. This amount represents 15% of total general fund expenditures and could be used if an emergency was declared by the City Council. The Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance shows that the total fund balance of the City of Cape Girardeau’s General Fund increased by $3.5 million as a result of the current years activity. The City of Cape Girardeau’s business-type activities are reported as proprietary funds and include Sewer, Water and Solid Waste as major funds while Golf Course, Indoor Sports Complex and Sporting Complex 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. CITY OF CAPE GIRARDEAU, MISSOURI 9 Capital Assets and Debt Administration Capital Assets The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2025 amounts to $412 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, furniture, machinery and equipment, infrastructure, and construction in progress. Major capital events during the current fiscal year funded by grants included the following: • Completion of Airport Terminal Building totaling $12.9 million • Reconstruction of Taxiway B totaling $5 million • Construction of Airport T-Hangers totaling $3.3 million Debt Administration The City, at the end of fiscal year 2025, had total debt outstanding of $80.7 million. Bonded debt outstanding totaling $43.8 million is secured by revenues of the sewer and water funds and capital improvement sales taxes. The repayment of the remaining debt is subject to annual appropriations. The City’s total long-term debt decreased by $8.4 million during the current fiscal year as a result of regularly scheduled principal payments. More information about the City’s outstanding debt can be found in the notes to the financial statements. 2025 2024 2025 2024 Public works 14,727,829$ 11,766,045 13,069,928 10,663,680 Public safety 20,247,604 20,200,775 19,338,876 19,095,348 Parks and recreation 8,142,121 7,534,099 5,720,226 5,153,568 Planning and development 8,531,042 8,069,969 4,492,742 (3,324,665) Administrative 3,912,990 4,433,715 2,507,970 2,975,251 Interest and other charges 1,011,952 1,083,966 1,011,952 1,083,966 56,573,538$ 53,088,569 46,141,694 35,647,148 Total cost of service Net cost of service Net Cost of City of Cape Girardeau's Governmental Activities CITY OF CAPE GIRARDEAU, MISSOURI 10 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 1%. The City began receiving Use Tax in March of 2022. The revenue has allowed the City to uphold the promise of strengthening its employee pay and benefits, and in the current fiscal year the City increased the stated pay plan rates by 3%. Use Tax revenue decreased $152 thousand (3%) during the current fiscal year. It is through conservative fiscal management that the City’s current financial position continued to improve during the fiscal year ended June 30, 2025. The City maintains adequate fund balances to cover existing claims, reduce long-term debt and fund potential emergencies. The budget for the fiscal year ending June 30, 2026 was conservatively prepared expecting some increases from inflation in expenditures and projecting revenues reflecting historical consistent revenue trends. The budget is balanced by utilizing a minimal amount of reserves that have accumulated through June of 2025. Requests for Information This financial report is designed to provide a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Cape Girardeau, 44 N. Lorimier St., Cape Girardeau, MO 63701. BASIC FINANCIAL STATEMENTS Governmental Business-Type Activities Activities Total Current Assets: Pooled Cash and Investments 90,649,730$ 40,802,447$ 131,452,177$ Investments 411,582 - 411,582 Taxes Receivable 4,876,537 - 4,876,537 Utility Charges Receivable - 2,936,128 2,936,128 Special Assessments Receivable 316,209 998 317,207 Other Receivables 982,275 33,757 1,016,032 Motor Fuel Receivable 306,160 - 306,160 Grants Receivable 3,421,981 1,500 3,423,481 Lease Receivable 177,822 90,374 268,196 Inventory 307,927 972,649 1,280,576 Prepaid Items 692,632 26,369 719,001 Internal Balances (354,141) 354,141 - Total Current Assets 101,788,714$ 45,218,363$ 147,007,077$ Noncurrent Assets: Restricted Cash and Cash Equivalents 2,000$ 5,121,604$ 5,123,604$ Lease Receivable 654,873 1,043,204 1,698,077 Net Pension Assets 1,736,554 943,180 2,679,734 Land 6,950,644 1,985,018 8,935,662 Buildings, Net 63,993,041 13,100,729 77,093,770 Improvements, Net 21,268,989 142,516,327 163,785,316 Furniture, Machinery and Equipment, Net 11,323,677 5,863,783 17,187,460 Infrastructure and Improvements, Net 129,959,056 - 129,959,056 Construction in Progress 7,149,180 7,879,862 15,029,042 Total Capital Assets, Net 243,038,014$ 178,453,707$ 421,491,721$ TOTAL ASSETS 344,826,728$ 223,672,070$ 568,498,798$ Deferred Outflow from Pension Plan 9,332,295$ 1,107,790$ 10,440,085$ Deferred Outflow from Retiree Health Plan 824,786 159,775 984,561 Total Deferred Outflows of Resources 10,157,081 1,267,565 11,424,646 CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF NET POSITION June 30, 2025 ASSETS DEFERRED OUTFLOWS OF RESOURCES See Accompanying Notes to the Basic Financial Statements. 11 Governmental Business-Type Activities Activities Total Current Liabilities: Accounts Payable 4,405,145$ 1,247,074$ 5,652,219$ Salaries and Benefits Payable 1,004,175 264,890 1,269,065 Interest Payable 100,322 270,415 370,737 Other Liabilities 596,506 1,331,086 1,927,592 Estimated Claims 730,300 - 730,300 Unearned Revenues 279,062 325,577 604,639 Revenue Bonds Payable, Current Portion - 4,333,000 4,333,000 Special Obligation Bonds Payable Current Portion 2,922,600 202,400 3,125,000 Total Current Liabilities 10,038,110$ 7,974,442$ 18,012,552$ Long-Term Liabilities: Revenue Bonds Payable -$ 39,521,582$ 39,521,582$ Special Obligation Bonds Payable 32,585,142 1,157,967 33,743,109 Compensated Absences Payable 1,394,501 169,224 1,563,725 Net OPEB Obligation 8,083,645 874,556 8,958,201 Total Long-Term Liabilities 42,063,288$ 41,723,329$ 83,786,617$ TOTAL LIABILITIES 52,101,398$ 49,697,771$ 101,799,169$ Deferred Inflow From Leases 765,277$ 1,073,936$ 1,839,213$ Deferred Inflow From Pension Plan 169,820 144,235 314,055 Deferred Inflow from Retiree Health Plan 1,007,624 60,613 1,068,237 Total Deferred Inflows of Resources 1,942,721$ 1,278,784$ 3,221,505$ Net Investment in Capital Assets 205,136,845$ 126,130,770$ 331,267,615$ Restricted 58,556,072 3,263,556 61,819,628 Unrestricted 37,246,773 44,568,754 81,815,527 TOTAL NET POSITION 300,939,690$ 173,963,080$ 474,902,770$ DEFERRED INFLOWS OF RESOURCES LIABILITIES NET POSITION CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF NET POSITION June 30, 2025 See Accompanying Notes to the Basic Financial Statements. 11 Operating Capital Charges Grants and Grants and Governmental Business-Type Expenses for Services Contributions Contributions Activities Activities Total Governmental Activities: Interest and Other Charges 1,011,952$ -$ -$ -$ (1,011,952)$ -$ (1,011,952)$ Development Services 8,531,042 2,071,317 309,488 1,657,495 (4,492,742) - (4,492,742) Public Safety 20,247,604 363,508 477,497 67,723 (19,338,876) - (19,338,876) Public Works 14,727,829 87,368 3,471 1,567,062 (13,069,928) - (13,069,928) Parks and Recreation 8,142,121 1,986,451 100,080 335,364 (5,720,226) - (5,720,226) Administrative 3,912,990 1,380,480 - 24,540 (2,507,970) - (2,507,970) Total Governmental Activities 56,573,538$ 5,889,124$ 890,536$ 3,652,184$ (46,141,694)$ -$ (46,141,694)$ Business-Type Activities: Golf Course Fund 908,120$ 951,258$ -$ 85,287$ -$ 128,425$ 128,425$ Indoor Sports Complex 1,379,969 926,005 - - - (453,964) (453,964) Sewer Fund 10,381,001 9,023,272 529,974 2,141,998 - 1,314,243 1,314,243 Solid Waste Fund 5,876,298 6,893,892 90 - - 1,017,684 1,017,684 Sporting Complexes Fund 1,523,805 503,797 - 682,294 - (337,714) (337,714) Water Fund 9,634,762 9,285,321 - 3,430,984 - 3,081,543 3,081,543 Total Business-Type Activities 29,703,955$ 27,583,545$ 530,064$ 6,340,563$ -$ 4,750,217$ 4,750,217$ Total Primary Government 86,277,493$ 33,472,669$ 1,420,600$ 9,992,747$ (46,141,694)$ 4,750,217$ (41,391,477)$ 3,250,593$ -$ 3,250,593$ 37,796,492 - 37,796,492 5,272,250 - 5,272,250 2,243,644 - 2,243,644 3,338,551 - 3,338,551 4,486,220 - 4,486,220 2,791,523 - 2,791,523 421,801 - 421,801 1,870,087 - 1,870,087 81,598 - 81,598 4,379,255 1,852,502 6,231,757 Gain (Loss) on Disposal of Capital Assets (71,072) 6,747 (64,325) Compensation for Damages 1,937 - 1,937 136,403 112,488 248,891 (7,164,449) 7,164,449 - Total General Revenues and Transfers 58,834,833 9,136,186$ 67,971,019$ Change in Net Position 12,693,139$ 13,886,403$ 26,579,542$ 288,246,551 160,082,030 448,328,581 - (5,353) (5,353) 300,939,690$ 173,963,080$ 474,902,770$ Convention and Tourism Taxes CITY OF CAPE GIRARDEAU, MISSOURI Property Taxes Sales Tax Franchise Tax Motor Fuel Taxes STATEMENT OF ACTIVITIES Year Ended June 30, 2025 Net (Expense) Revenue and Change in Net Position Functions/Programs General Revenues: Program Revenues Taxes: Use Tax Net Position - July 1, 2024 Net Position - June 30, 2025 Other Taxes Investment Income Internal Balances Merchant Licenses Liquor Licenses Gaming Taxes Prior Period Adjustment Settlements See Accompanying Notes to the Basic Financial Statements. 12 FUND FINANCIAL STATEMENTS Nonmajor Total General Airport Governmental Governmental Fund Fund Funds Funds CURRENT ASSETS: Pooled Cash and Investments 20,170,766$ 1,422,393$ 61,714,188$ 83,307,347$ Receivables: Real Estate Taxes, Net 387,958 - 67,283 455,241 Property Taxes, Net 46,242 - 8,666 54,908 Sales Tax 1,243,599 - 2,076,522 3,320,121 Franchise Tax 395,870 - - 395,870 Use Tax 315,147 - - 315,147 Hotel and Motel Tax - - 121,812 121,812 Restaurant Tax - - 213,438 213,438 Special Assessments 306,958 - 9,251 316,209 Other 50,597 263,239 483,193 797,029 Motor Fuel Tax - - 254,608 254,608 Vehicle License Fees - - 37,627 37,627 Motor Vehicle Sales Tax - - 13,925 13,925 Grants 143,631 2,549,169 729,181 3,421,981 Other Funds 3,791,983 - - 3,791,983 Inventory 162 48,740 45,114 94,016 Prepaid Items 357,970 25,434 91,058 474,462 TOTAL CURRENT ASSETS 27,210,883 4,308,975 65,865,866 97,385,724 NONCURRENT ASSETS: Advances to Other Funds -$ -$ 1,606,675$ 1,606,675$ TOTAL NONCURRENT ASSETS -$ -$ 1,606,675$ 1,606,675$ TOTAL ASSETS 27,210,883$ 4,308,975$ 67,472,541$ 98,992,399$ LIABILITIES: Accounts Payable 568,120$ 1,314,897$ 2,425,936$ 4,308,953$ Salaries and Benefits Payable 762,150 28,398 136,742 927,290 Other Liabilities 524,459 70,465 1,582 596,506 Payable to Other Funds - 3,791,983 - 3,791,983 Unearned Revenues 19,328 1,900 137,682 158,910 Deferred Revenues 728,178 - 192,193 920,371 CURRENT LIABILITIES 2,602,235$ 5,207,643$ 2,894,135$ 10,704,013$ NONCURRENT LIABILITIES: Advances from Other Funds -$ 1,146,976$ -$ 1,146,976$ TOTAL NONCURRENT LIABILITIES -$ 1,146,976$ -$ 1,146,976$ TOTAL LIABILITIES 2,602,235$ 6,354,619$ 2,894,135$ 11,850,989$ FUND BALANCE: Nonspendable 480,599$ 25,434$ 1,697,733$ 2,203,766$ Restricted 4,471,179 - 54,084,893 58,556,072 Committed - - 5,669,459 5,669,459 Assigned 48,202 3,192,949 3,241,151 Unassigned 19,608,668 (2,071,078) (66,628) 17,470,962 TOTAL FUND BALANCE 24,608,648 (2,045,644) 64,578,406 87,141,410 TOTAL LIABILITIES AND FUND BALANCE 27,210,883$ 4,308,975$ 67,472,541$ 98,992,399$ ASSETS LIABILITIES AND FUND BALANCE CITY OF CAPE GIRARDEAU, MISSOURI GOVERNMENTAL FUNDS June 30, 2025 BALANCE SHEET - See Accompanying Notes to the Basic Financial Statements. 13 Total fund balance - total governmental funds (Balance Sheet - Governmental Funds)87,141,410$ 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 $187,201,807.238,754,619 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.8,729,985 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.10,487,622 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.(150,227) 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.(8,031,308) Lease receivables are not financial resources and therefore are not reported in the governmental funds balance sheet.832,695 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.(765,277) 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.(1,352,306) 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 (35,507,742) 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.800,219 Net position of governmental activities (Statement of Net Position)300,939,690$ CITY OF CAPE GIRARDEAU, MISSOURI RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION June 30, 2025 See Accompanying Notes to the Basic Financial Statements. 14 Nonmajor Total General Airport Governmental Governmental Fund Fund Funds Funds REVENUES: Taxes 27,116,972$ -$ 30,106,304$ 57,223,276$ Licenses and Permits 2,200,888 - - 2,200,888 Intergovernmental 571,966 1,900,267 3,146,699 5,618,932 Charges for Services 162,239 712,662 1,867,634 2,742,535 Internal Charges 1,446,453 - - 1,446,453 Fines and Forfeits 250,592 - - 250,592 Miscellaneous 369,134 410,552 187,053 966,739 Investment Revenue 1,027,374 119,341 2,941,553 4,088,268 Special Assessments 55,843 - 4,449 60,292 TOTAL REVENUES 33,201,461$ 3,142,822$ 38,253,692$ 74,597,975$ EXPENDITURES: Current: Administrative Services 3,721,303$ -$ 111,120$ 3,832,423$ Development Services 2,837,567 2,333,880 1,947,368 7,118,815 Parks and Recreation 1,790,567 - 3,710,248 5,500,815 Public Safety 19,276,192 - 663,565 19,939,757 Public Works 2,520,294 - 190,449 2,710,743 Debt Service: Interest - - 1,064,318 1,064,318 Principal - - 3,012,968 3,012,968 Capital Outlay: Administrative Services - - 40,085 40,085 Development Services - 4,399,203 286,782 4,685,985 Capital Improvements - - - - Parks and Recreation 2,300 - 1,122,595 1,124,895 Public Works 6,734 - 10,149,121 10,155,855 Public Safety 457,166 - 514,964 972,130 TOTAL EXPENDITURES 30,612,123$ 6,733,083$ 22,813,583$ 60,158,789$ REVENUES OVER (UNDER) EXPENDITURES 2,589,338$ (3,590,261)$ 15,440,109$ 14,439,186$ OTHER FINANCING SOURCES (USES): Transfers In 6,473,344$ 865,327$ 7,200,168$ 14,538,839$ Transfers Out (5,672,004) - (16,771,284) (22,443,288) Compensation for Damages 1,937 - - 1,937 Settlements 136,403 - - 136,403 Gain (Loss) from Sale of Asset 21,841 - 26,265 48,106 Capital Contributions - - 316,146 316,146 TOTAL OTHER FINANCING SOURCES (USES)961,521$ 865,327$ (9,228,705)$ (7,401,857)$ NET CHANGE IN FUND BALANCES 3,550,859$ (2,724,934)$ 6,211,404$ 7,037,329$ FUND BALANCE, July 1, 2024 21,057,789 679,290 58,367,002 80,104,081 FUND BALANCE, June 30, 2025 24,608,648$ (2,045,644)$ 64,578,406$ 87,141,410$ CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year Ended June 30, 2025 See Accompanying Notes to the Basic Financial Statements. 15 Net Change in fund balances - total governmental funds (Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds)7,037,329$ 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.10,955,514 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.(11,791,527) 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.(119,193) 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.493,112 Changes in compensated absences does not require the use of current financial resources and is therefore not reported as expenditures in governmental funds. (64,716) Revenues in the statement of activities that do no provide current financial resources are not reported as revenues in governmental funds.847,792 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. 88,636 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.28,861 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.3,065,334 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.2,151,997 Change in net position of governmental activities (Statement of Activities)12,693,139$ CITY OF CAPE GIRARDEAU, MISSOURI RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND Year Ended June 30, 2025 BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES See Accompanying Notes to the Basic Financial Statements. 16 Non-Major Total Sewer Water Solid Waste Enterprise Enterprise Internal Fund Fund Fund Funds Funds Service Funds CURRENT ASSETS: Pooled Cash and Investments 20,999,425$ 12,150,563$ 5,345,980$ 2,306,479$ 40,802,447$ 7,342,383$ Investments - - - - - 411,582 Receivables: Utility Charges, Net 1,163,891 1,221,586 550,651 - 2,936,128 - Special Assessments 998 - - - 998 - Leases - 5,031 44,743 40,600 90,374 - Other 2,040 30,056 1,661 - 33,757 185,246 Grants 1,500 - - - 1,500 - Inventory 26 939,352 - 33,271 972,649 213,911 Prepaid Items 13,690 6,066 1,293 5,320 26,369 218,170 Total Current Assets 22,181,570$ 14,352,654$ 5,944,328$ 2,385,670$ 44,864,222$ 8,371,292$ NONCURRENT ASSETS: Restricted Cash and Cash Equivalents 4,362,687$ 758,917$ -$ -$ 5,121,604$ 2,000$ Lease Receivable - 330,243 445,095 267,866 1,043,204 - Net Pension Asset 444,639 128,028 188,663 181,850 943,180 72,071 Land 537,678 - 112,240 1,335,100 1,985,018 37,500 Buildings 8,093,164 306,244 4,928,942 13,449,347 26,777,697 53,906 Equipment 8,636,952 3,173,739 4,296,375 1,874,004 17,981,070 7,589,226 Other Improvements 173,429,171 74,027,077 372,725 5,498,605 253,327,578 155,653 Construction in Progress 2,754,252 4,501,517 - 624,093 7,879,862 5,452 Accumulated Depreciation (84,104,357) (38,385,354) (5,674,954) (8,440,841) (136,605,506) (5,951,769) Total Current Assets 114,154,186 44,840,411 4,669,086 14,790,024 178,453,707 1,964,039 TOTAL ASSETS 136,335,756$ 59,193,065$ 10,613,414$ 17,175,694$ 223,317,929$ 10,335,331$ DEFERRED OUTFLOWS OF RESOURCES: Deferred Outflow from Pension Plan 422,896$ 58,330$ 419,008$ 207,556$ 1,107,790$ 339,336$ Deferred Outflow from Retiree Health Plan 54,740 5,497 61,638 37,900 159,775 51,036 Total Deferred Outflows of Resources 477,636$ 63,827$ 480,646$ 245,456$ 1,267,565$ 390,372$ See Accompanying Notes to the Basic Financial Statements. 17 ASSETS CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2025 Business-Type Activities Non-Major Total Sewer Water Solid Waste Enterprise Enterprise Internal CURRENT LIABILITIES:Fund Fund Fund Funds Funds Service Funds Accounts Payable 664,075$ 230,893$ 254,511$ 97,595$ 1,247,074$ 96,192$ Salaries and Benefits Payable 46,753 117,092 39,316 61,729 264,890 26,980 Interest Payable 268,190 - 2,225 - 270,415 - Other Liabilities 571,586 484,665 274,835 - 1,331,086 - Estimated Claims Payable - - - - - 730,300 Unearned Revenues 200,786 - - 124,791 325,577 - Revenue Bonds Payable, Current Portion 3,623,000 710,000 - - 4,333,000 - Special Obligation Bonds Payable, Current Portion - - 202,400 - 202,400 - Total Current Liabilities 5,374,390$ 1,542,650$ 773,287$ 284,115$ 7,974,442$ 853,472$ NONCURRENT LIAIBILITIES: Net OPEB Obligation 280,766$ 41,047$ 340,256$ 212,487$ 874,556$ 260,627$ Compensated Absences Payable 71,208 - 56,938 41,078 169,224 42,195 Advances from Other Funds - - 459,699 - 459,699 - Revenue Bonds Payable 34,478,000 5,043,582 - - 39,521,582 - Special Obligation Bonds Payable - - 1,157,967 - 1,157,967 - Total Noncurrent Liabilities 34,829,974$ 5,084,629$ 2,014,860$ 253,565$ 42,183,028$ 302,822$ TOTAL LIABILITIES 40,204,364$ 6,627,279$ 2,788,147$ 537,680$ 50,157,470$ 1,156,294$ DEFERRED INFLOWS OF RESOURCES: Deferred Inflow from Pension Plan -$ 48,451$ -$ 95,784$ 144,235$ -$ Deferred Inflow from Leases - 303,374 461,865 308,697 1,073,936 - Deferred Inflow from Retiree Health Plan 20,959 13,302 19,665 6,687 60,613 25,584 Total Deferred Inflows of Resources 20,959$ 365,127$ 481,530$ 411,168$ 1,278,784$ 25,584$ Net Investment in Capital Assets 71,245,860$ 37,869,641$ 2,674,961$ 14,340,308$ 126,130,770$ 1,889,968$ Restricted: Depreciation and Replacement - 150,000 - - 150,000 - Emergencies 781,394 1,047,053 847,313 437,796 3,113,556 - Unrestricted 24,560,815 13,197,792 4,302,109 1,694,198 43,754,914 7,653,857 TOTAL NET POSITION 96,588,069$ 52,264,486$ 7,824,383$ 16,472,302$ 173,149,240 9,543,825$ Difference between business-type adjustments to assets and liabilities 813,840 Net position of business-type activities 173,963,080$ 18 CITY OF CAPE GIRARDEAU, MISSOURI See Accompanying Notes to the Basic Financial Statements. LIABILITIES NET POSITION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2025 Business-Type Activities Non-Major Total Sewer Water Solid Waste Enterprise Enterprise Internal Fund Fund Fund Funds Funds Service Funds OPERATING REVENUES: Residential Charges 5,496,294$ 5,492,237$ 3,735,006$ -$ 14,723,537$ -$ Commercial Charges 3,189,496 3,628,315 55,290 - 6,873,101 - Transfer Station Charges - - 2,852,198 - 2,852,198 - Other Fees and Charges 129,272 130,284 118,662 - 378,218 17,159 Concession Revenues - - - 346,525 346,525 - Internal Charges 9,677 - - - 9,677 8,129,368 Usage Fees - - - 2,027,830 2,027,830 16,021 Miscellaneous 18,917 34,485 132,736 6,705 192,843 137,372 TOTAL OPERATING REVENUES 8,843,656$ 9,285,321$ 6,893,892$ 2,381,060$ 27,403,929$ 8,299,920$ OPERATING EXPENDITURES: Personnel Services 1,638,150$ 301,151$ 1,377,836$ 1,810,100$ 5,127,237$ 1,002,951$ Materials and Supplies 959,924 2,248,294 294,876 461,323 3,964,417 601,170 Contractual Services 1,840,898 4,094,325 3,236,497 488,719 9,660,439 4,969,508 General Operating Expenses 509,473 497,474 20,792 14,558 1,042,297 41,935 Special Programs - - 103,010 189,087 292,097 1,665 Internal Services Expenses 263,968 248,514 563,667 165,065 1,241,214 29,994 Depreciation 4,523,034 2,150,936 347,877 741,642 7,763,489 296,456 TOTAL OPERATING EXPENDITURES 9,735,447$ 9,540,694$ 5,944,555$ 3,870,494$ 29,091,190$ 6,943,679$ TOTAL OPERATING INCOME (LOSS)(891,791)$ (255,373)$ 949,337$ (1,489,434)$ (1,687,261)$ 1,356,241$ NONOPERATING REVENUES (EXPENSES) Intergovernmental 529,974$ -$ 90$ -$ 530,064$ -$ Investment Revenue 984,988 529,886 226,779 110,849 1,852,502 271,245 Gain (Loss) from Disposal of Assets (12,325) 3,542 - 15,530 6,747 19,174 Compensation for Damages 45,858 66,630 - - 112,488 - Interest and Other Charges (765,983) (136,829) (40,897) - (943,709) - Transfers In 4,756,756 1,450,944 - 956,749 7,164,449 740,000 Transfers Out - - - - - - Contributed Capital - Government 1,344,561 2,944,719 - 767,581 5,056,861 96,281 Contributed Capital - Connect Fee 179,616 - - - 179,616 - Contributed Capital - Developers 797,437 486,265 - - 1,283,702 - TOTAL NONOPERATING REVENUES (EXPENSES)7,860,882$ 5,345,157$ 185,972$ 1,850,709$ 15,242,720$ 1,126,700$ NET CHANGE IN NET POSITION 6,969,091$ 5,089,784$ 1,135,309$ 361,275$ 13,555,459$ 2,482,941$ NET POSITION, July 1, 2024 89,618,978 47,174,702 6,689,074 16,116,380 159,599,134 7,060,884 PRIOR PERIOD ADJUSTMENT - - - (5,353) (5,353) - NET POSITION, June 30, 2025 96,588,069$ 52,264,486$ 7,824,383$ 16,472,302$ 173,149,240$ 9,543,825$ Adjustments to reflect the consolidation of internal service fund activities related to the enterprise funds 330,944 Change in Net Position of Business-Type Activities 173,480,184$ CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS Year Ended June 30, 2025 Business-Type Activities See Accompanying Notes to the Basic Financial Statements. 19 Non-Major Total Sewer Water Solid Waste Enterprise Enterprise Internal Fund Fund Fund Funds Funds Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from Customers 8,727,948$ 9,234,586$ 6,852,378$ 2,379,318$ 27,194,230$ 170,552$ Receipts from Interfund Services 9,677 - - - 9,677 8,188,838 Payments to Suppliers (2,402,623) (6,536,035) (3,532,677) (1,116,782) (13,588,117) (5,591,613) Payments for Salaries and Benefits (1,784,027) (316,111) (1,450,384) (1,891,663) (5,442,185) (1,131,510) Payments for Interfund Services Used (263,968) (248,514) (563,667) (165,065) (1,241,214) (29,994) Payments Made in Lieu of Franchise Taxes (438,235) (443,639) - - (881,874) - NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 3,848,772$ 1,690,287$ 1,305,650$ (794,192)$ 6,050,517$ 1,606,273$ CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers from Other Funds 9,513,512$ 1,450,944$ -$ 956,749$ 11,921,205$ 740,000$ Transfers to Other Funds - - - - - - Interest Paid to Other Funds - - (7,309) - (7,309) - Subsidy From Grant 3,300 - 1,342 - 4,642 - Insurance Claims 45,858 66,630 - - 112,488 (32,800) Repayment of Long-Term Advance from Other Funds - - (125,000) - (125,000) - NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 9,562,670$ 1,517,574 (130,967) 956,749 11,906,026 707,200 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase and Construction of Capital Assets (2,220,625)$ (1,179,850)$ (28,702)$ (135,710)$ (3,564,887)$ (409,824)$ Principal Paid on Capital Debt (3,538,000) (742,739) (347,032) - (4,627,771) - Interest Paid on Capital Debt (790,886) (136,829) (34,159) - (961,874) - Proceeds from Sales of Capital Assets - - - 24,000 24,000 47,325 Transfers In for Payment of Capital Related Debt (4,756,756) - - - (4,756,756) - NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (11,306,267) (2,059,418) (409,893) (111,710) (13,887,288) (362,499) CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended June 30, 2025 Business-Type Activities See Accompanying Notes to the Basic Financial Statements. 20 Non-Major Total Sewer Water Solid Waste Enterprise Enterprise Internal Fund Fund Fund Funds Funds Service Funds CASH FLOWS FROM INVESTING ACTIVITIES: Interest Received 984,988$ 529,886$ 226,779$ 110,849$ 1,852,502$ 271,245$ Net Change in Pooled Investments (3,084,708) (1,650,143) (991,569) (161,696) (5,888,116) (2,220,219) NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (2,099,720)$ (1,120,257)$ (764,790)$ (50,847)$ (4,035,614)$ (1,948,974)$ NET CHANGE IN CASH 5,455 28,186 - - 33,641 2,000 CASH, July 1, 2024 4,357,232$ 730,731$ -$ -$ 5,087,963$ -$ CASH, June 30, 2025 4,362,687$ 758,917$ -$ -$ 5,121,604$ 2,000$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating Income (Loss)(891,791)$ (255,373)$ 949,337$ (1,489,434)$ (1,687,261)$ 1,356,241$ Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense 4,523,034 2,150,936 347,877 741,642 7,763,489 296,456 Bad Debt Expense 28,401 31,466 - - 59,867 - Changes in Assets and Liabilities: Accounts Payable - Supplier 446,703 (134,758) 106,622 28,523 447,090 42,553 Accounts Payable - Other 27,745 24,724 15,955 - 68,424 - Salaries and Benefits Payable (4,202) 1,914 7,961 (2,322) 3,351 (24,551) Customer Receivables (134,432) (73,281) (36,210) - (243,923) - Interfund Receivables - - - - - 59,470 Lease Receivables - (8,920) (5,304) 231 (13,993) - Prepaid Expenses (4,985) (1,308) (79) (4,049) (10,421) 5,766 OPEB Liability (46,855) - (2,155) (15,536) (64,546) (42,817) Pension Asset/Liability (94,820) (16,874) (78,354) (63,705) (253,753) (61,191) Inventory (26) (28,239) - 12,431 (15,834) (25,654) Unearned Revenue - - - (1,973) (1,973) - NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 3,848,772$ 1,690,287$ 1,305,650$ (794,192)$ 6,050,517$ 1,606,273$ 21 STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended June 30, 2025 Business-Type Activities CITY OF CAPE GIRARDEAU, MISSOURI See Accompanying Notes to the Basic Financial Statements. ASSETS: Pooled Cash and Investments 3,313,902$ Restricted Cash and Cash Equivalents 570,897 Receivables: Real Estate Taxes, Net 410,158 Grants 62,286 Prepaid Items 21,284 TOTAL ASSETS 4,378,527$ LIABILITIES: Accounts Payable 65,585$ Salaries and Benefits Payable 33,625 Deferred Revenues 397,882 TOTAL LIABILITIES 497,092$ CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF FIDUCIARY NET POSITION June 30, 2025 LIABILITIES AND NET POSITION ASSETS See Accompanying Notes to the Basic Financial Statements. 22 ADDITIONS Taxes 2,186,594$ Intergovernmental 515,817 Other Fees and Charges 111,133 Miscellaneous 33,198 Investment Revenue 181,422 TOTAL REVENUES 3,028,164$ DEDUCTIONS Personnel Services 1,034,458$ Contractual Services 409,726 Materials and Supplies 210,409 General Operating Expenses 280,799 Debt Service: Interest 35,320 Principal 680,000 TOTAL EXPENDITURES 2,650,712$ CHANGE IN NET POSITION 377,452$ NET POSITION, July 1, 2024 3,503,981 NET POSITION, June 30, 2025 3,881,433$ CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Year Ended June 30, 2025 See Accompanying Notes to the Basic Financial Statements. 23 24 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Cape Girardeau, Missouri (the City) operates under a charter, which went into effect April 12, 1982. The City operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, water, sanitation, health and social services, culture-recreation, public improvement, planning and zoning, and general administrative services. The financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP), as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. 1. Reporting Entity In evaluating how to define the City, for financial reporting purposes, management has considered all potential component units. Generally, component units are legally separate organizations for which the elected officials of the City are financially accountable. The Cape Girardeau (Missouri) Public Facilities Authority (CGPFA) is a blended component unit of the City. The financial statements of the CGPFA are included in the accompanying financial statements of the City. The Cape Girardeau Parks Development Foundation (CGPDF) is also a component unit of the City. The financial statement of this foundation is included as a special revenue fund in the accompanying financial statements. The CGPFA is a not-for-profit corporation organized and existing under Chapter 355 of the Revised Statutes of Missouri. The CGPFA board of directors consists of City officials and City Council members. Due to the significant City influence and financial accountability, the activities of the CGPFA are blended with the financial presentation of the City. The CGPFA executed a bond indenture for the purpose of issuing and securing the Series 2009 Bonds. These bonds were used for the construction of various storm water control improvements, Cape Splash Family Aquatic Center, Shawnee Park Community Center, and various other park related improvements. The CGPFA entered into a Lease Purchase Agreement with the City from which the lease payments were used solely to retire the debt. All debt was retired and remaining assets, $162.10 in cash, were returned to the City prior to the current year. No activity occurred during the current year. The CGPDF is a not-for-profit corporation organized and existing under Chapter 355 of the Revised Statutes of Missouri. The CGPDF board of directors consists of Park and Recreation Board members and one City Council member. Due to the significant City influence and financial accountability, the activities of this foundation are included in the financial presentation of the City. This foundation was established to receive donations to be used for the benefit of the City. 25 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Although not component units of the City, the City handles the funds of and provides accounting and other services for the Cape Girardeau Public Library and the SEMO Metropolitan Planning Organization. Since these funds are held by the City, these entities are shown as Custodial Funds in the financial statements. 2. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. The effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. With the economic resources measurement focus, all assets and liabilities associated with operations are reflected in the statement of net position. 26 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City generally considers revenues to be available if they are collected within 30 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Those revenues susceptible to accrual are property taxes, franchise taxes, special assessments, licenses, interest revenue, and charges for services. Sales taxes collected and held by the state at year -end on behalf of the City also are recognized as revenue. Fines and permit revenues are not susceptible to accrual because, generally, they are not measurable until received in cash. With the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The City reports the following major governmental funds: The general fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The airport fund accounts for the receipts and expenditures of the municipal airport. The City reports the following major proprietary funds: The sewer fund accounts for the operation of the City’s sewage treatment plant, sewage pumping stations, and collection systems. The water fund accounts for the operation of the City’s water treatment plants and distribution systems. The solid waste fund accounts for the operation of the City’s residential solid waste and recycling programs. 27 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Continued Additionally, the City reports the following fund types: Internal service funds account for the management of information systems, fleet management, employee benefits, workers’ compensation, and equipment leasing provided to other departments or agencies of the City on a cost reimbursement basis. Custodial funds account for the operations of the Cape Girardeau Public Library and the SEMO Metropolitan Planning Organization. As a general rule the effect of interfund activity has been eliminated from the gov ernment-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s enterprise function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. It is the City’s policy to first use restricted net resources prior to the use of unrestricted net resources when an expense is incurred for purposes for which both restricted and unrestricted net resources are available. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 4. Cash and Investments The City maintains an internal investment pool for the majority of its non-restricted cash and investments and a small portion of its restricted cash and investments. Investment revenue is allocated to each fund based on its average equity balance in the pool. 28 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Cash includes amounts in repurchase agreements and other short-term investments with a maturity date within three months of the date of purchase. Investments with a maturity date of one year or more at the time of purchase are recorded at fair value. All other cash and investments are recorded at cost or amortized cost. 5. Capital Assets All capital assets with an original cost exceeding $5,000 are recorded at historical cost or estimated historical cost if actual historical cost is not available. Additions are recorded at cost or, if contributed property, at their estimated fair value at time of contribution. Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. The sale or disposal of capital assets is recorded by removing cost and accumulated depreciation and charging the resulting gain or loss to income. Depreciation of all exhaustible capital assets is charged as an expense against operations in proprietary funds and a program cost of governmental activities in the statement of activities. Assets are reported net of depreciation on proprietary fund and government-wide statement of net position. Depreciation has been provided over the estimated useful lives using the straight -line method. The estimated useful lives are as follows: Buildings 25-50 years Improvements 10-40 years Equipment 3-10 years When applicable, interest costs are capitalized on self -constructed capital assets. 6. Encumbrances Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized in all funds. Encumbrances outstanding at the end of the year in the governmental funds are reported as assigned fund balances and do not constitute expenditures or liabilities because the commitments will be carried forward and honored during the subsequent year. Encumbrances outstanding in the proprietary funds do not constitute expenses but will be honored in the subsequent year. No reservations of net assets are made for encumbrances outstanding at the end of the year on the proprietary fund and government-wide statement of net position. 7. Inventories Inventories consist primarily of supplies, valued at cost. The cost of inventories is recorded as expenditures or expenses when consumed rather than when purchased. 29 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 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, 2025 are recorded as prepaid items. 11. Restricted Assets Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for the repayment of such bonds, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. The “revenue bond construction” account is used to report those proceeds of revenue bond issuances that are restricted for use in construction. The “revenue bond current debt service” account is used to report resources set aside to make up potential future deficiencies in the revenue bond current debt service account. 12. Long-Term Obligations Only that portion of long-term obligations expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. Long -term liabilities expected to be financed from proprietary fund operations are accounted for in the appropriate proprietary fund. Long-term liabilities expected to be financed from governmental activities are accounted for in the government-wide statement of net position. 30 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 13. Receivables Receivables are stated at the amount the City expects to collect. Receivables are reduced by allowances for uncollectible accounts that reflect management’s best estimate of probable losses. These allowances are determined principally on the basis of historical experience for smaller accounts. Larger receivables are reduced by allowances that reflect management’s best estimate of probable losses based on specific information known about the troubled accounts. Small - balance accounts are normally written off when over 12 months delinquent. Accounts not expected to be collected within the next 12 months are reported as Non-current on the Statement of Net Position only if management estimates the customer has the ability and intent to pay the balance due. 14. Compensated Absences Vested or accumulated vacation leave and termination pay for proprietary funds are recorded as expenses and liabilities of those funds as the benefits accrue to employees. Amounts of vested or accumulated vacation leave and termination pay of governmental funds are reported in the Statement of Net Position. Employees may accumulate up to 30 days of vacation, for which they are compensated upon termination or retirement. Employees are not compensated for accumulated sick leave upon termination but are compensated one hour for each eight hours of unused sick leave upon retirement. 15. Short-Term Inter-fund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “inter -fund receivables/payables” on the governmental balance sheet and proprietary statement of net position. Only net receivables between governmental and business-type activities are reflected as internal balances on the government-wide statement of net position. 16. Advances to Other Funds Noncurrent portions of long-term inter-fund loan receivables and payables are reported as advances in the governmental balance sheet and proprietary statement of net position. Fund balances equal to inter-fund loan receivables are reported as non-spendable on the governmental balance sheet to indicate that they do not constitute expendable available financial resources and therefore are not available for appropriation. Only net long-term inter-fund loans between governmental and business-type activities are reflected as internal balances on the government- wide statement of net position. Net assets are not reserved for inter -fund loan receivables on proprietary and government-wide statements of net position. 31 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 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, 2025, those costs totaled $606,507. 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 i s 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, 2025. 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, 2025 all infrastructures completed during the fiscal year, including projects started in a previous year, were recorded at their historical costs. 32 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 20. Subsequent Events In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure through January 29, 2026, 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, 2025, and reported at fair value, are as follows: Deposits: Demand Deposits $ 420,028 Interest Bearing Deposit Accounts 122,816,038 Total Deposits $ 123,236,066 Investments: Negotiable Instruments $ 11,463,407 Total Investments $ 11,463,407 Accrued Interest Revenue $ 66,606 Total Pooled Deposits and Investments $ 134,766,079 As of June 30, 2025, the City had the following pooled investments: Investments Maturities Fair Value Negotiable Instruments 08/15/25 – 04/03/30 $11,463,407 Total $11,463,407 Reconciliation of Pooled Cash and Investments to Statements: Governmental Pooled Cash and Investments $ 90,649,730 Business-type Pooled Cash and Investments 40,802,447 Fiduciary Pooled Cash and Investments 3,313,902 Total Pooled Cash and Investments $134,766,079 33 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 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, 2025, and reported at fair value, are as follows: Deposits: Interest Bearing Deposit Accounts $5,694,501 Total Deposits $5,694,501 Investments: U. S. Treasury Note $ 411,582 Total Investments $ 411,582 Total Non-pooled Deposits and Investments $6,106,083 As of June 30, 2025, the City had the following non-pooled investments U. S. Treasury Note 012/05/24 – 11/15/25 $ 411,582 Total $ 411,582 Reconciliation of Non-pooled Deposits and Investments to Statements: Governmental Investments $ 411,582 Business-type Restricted Cash and Cash Equivalents 5,123,604 Fiduciary Cash and Cash Equivalents 570,897 Total Non-pooled Deposits and Investments $6,106,083 Custodial Credit Risk: Deposits in financial institutions, reported as components of cash, cash equivalents, and investments, had a bank balance of $141,557,368 at June 30, 2025, 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, 2025 are provided above. 34 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE B - DEPOSITS AND INVESTMENTS - continued Investment Credit Risk The City has an investment policy that limits its investment choices as follows: a. Direct obligations of the U.S. Government, its agencies, and instrumentalities to which the full faith and credit of the U.S. Government is pledged, or obligations to the payment of which the full faith and credit of the State is pledged; b. Certificates of deposit or savings accounts that are either insured or secured with acceptable collateral with in-state financial institutions, and fully insured certificates of deposit or savings accounts in out-of-state financial institutions; c. Repurchase agreements collateralized by securities listed in (a.) above, documented by a written agreement, fully collateralized by delivery to an independent third-party custodian, and are marked-to-market; d. Money market mutual funds whose portfolio consists of the foregoing instruments; and, e. Other prudent investment instruments approved prior to purchase by a two- thirds majority of the City Council. Bond proceeds may be invested as allowed in the bond indenture. Concentration of Investment Credit Risk The City places no limit on the amount it may invest in any one issuer. At June 30, 202 5, the City had no concentration of credit risk. NOTE C – LEASE RECEIVABLE LEASES: Lease (Lessor) agreements are summarized as follows: 35 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE C – LEASE RECEIVABLE - continued Total Deferred Balance Description Date Terms Amount Interest Rate Inflows June 30, 2025 Fresh Health Cape 11/1/2024 3 years 3.25%20,037$ 20,197$ SEMO State University 2/1/2024 10 years 3.25%288,660 288,269 Larry Eftink Farms 1/1/2022 5 years 57,781$ 3.25%91,338 96,319 Crown Castle 12/7/1998 45 years 4,564 3.25%303,374 335,274 Now-Verticale Bridge 1/1/2006 25 years 8,362 3.25%37,728 49,110 Nemiesis Flight Ops 2/1/2015 25 years 3,281 3.25%55,300 62,731 DSW Signs, LLC 1/31/2021 20 yers 2,137 3.25%42,780 44,555 Republic Services 12/15/2014 20 years 40,592 3.25%461,865 489,838 Transport Security Admin 7/1/2020 15 years 927 3.25%81,577 91,329 Contour Airlines 10/18/2022 7 years 1,890 3.25%86,332 89,906 U.S. Aviation Academy 1/1/2025 6 years 4,942 3.25%289,295 298,314 Ozark Aircraft Maintenance 2/1/2020 10 years 2,001 3.25%80,927 100,401 Total Lease Revenue 1,839,213$ 1,966,273$ 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 2026 $ 268,196 $ 60,871 2027 243,857 52,271 2028 214,529 45,074 2029 218,504 38,099 2030 196,405 31,184 2031-2035 540,117 196,937 2036-2040 118,280 39,302 2041-2045 112,768 20,605 2046-2047 53,617 53,618 $1,966,273 $ 537,961 36 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE D – PROPERTY TAXES – continued Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August 28, 2024, for collection during this fiscal year and were due on or before December 31. Most of the taxes are collected for the City by Cape Girardeau County in November and December and remitted to the City in December and January. The tax rates assessed at the time were as follows: General Revenue $.3067/100.00 assessed valuation Public Health .0575/100.00 assessed valuation Special Business District .7283/100.00 assessed valuation #2 (Ad Valorem) Property tax receivable balances as of June 30, 2025 are as follows: General Public Revenue Health Total Current property tax 122,653$ 17,288$ 139,941$ Delinquent property tax 327,084 61,573 388,657 Reserve for doubtful property taxes (15,537) (2,912) (18,449) Net property tax receivable 434,200$ 75,949$ 510,149$ 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, 2025 is as follows: Balance Current Year Balance July 1, 2024 Additions Deductions Depreciation*6/30/2025** Land 6,950,644$ -$ -$ -$ 6,950,644$ Buildings 49,913,187 16,678,478 - (2,598,624) 63,993,041 Land improvements 17,329,853 5,088,227 - (1,149,091) 21,268,989 Equipment 12,139,258 1,331,578 (119,193) (2,027,966) 11,323,677 Infrastructure 131,261,362 4,753,730 - (6,056,036) 129,959,056 Construction in progress 23,012,863 9,786,316 (25,649,999) - 7,149,180 Total capital assets 240,607,167$ 37,638,329$ (25,769,192)$ (11,831,717)$ 240,644,587$ * Includes depreciation expenses from the internal service funds’ assets which are included in the expenses of the governmental activities and business activities on the government -wide Statement of Activities as internal charges. **Includes the internal service funds’ assets which are included as part of the governmental activities assets included on the government-wide Statement of Net Position. 37 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 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, 2025 is as follows: Balance Current Year Balance July 1, 2024 Additions Deductions Depreciation*June 30, 2025 Land 1,985,018$ -$ -$ -$ 1,985,018$ Buildings 13,582,734 - - (482,005) 13,100,729 Improvements other than buildings 144,374,066 4,573,933 - (6,431,672) 142,516,327 Equipment 5,963,499 790,574 (40,478) (849,812) 5,863,783 Construction in progress 3,207,229 7,735,656 (3,063,023) - 7,879,862 Total capital assets 169,112,546$ 13,100,163$ (3,103,501)$ (7,763,489)$ 171,345,719$ Depreciation expense was charged to functions as follows in the statement of activities: Governmental Activities: Administrative $ 16,292 Development Services 1,272,334 Parks and Recreation 2,000,542 Public Safety 935,810 Public Works 7,606,739 Total $ 11,831,717 Business-Type Activities: Golf Course $ 146,706 Sewer 4,523,034 Sporting Complexes 273,357 Sportsplex 321,579 Solid Waste 347,877 Water 2,150,936 Total $ 7,763,489 38 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 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, 2025: Government Other Activities Debt*Total Debt payable June 30, 2024 38,577,882$ 38,577,882$ Discount/Premium Amortization (57,172) (57,172) Issued - - Retired (3,012,968) (3,012,968) Debt payable June 30, 2025 35,507,742$ 35,507,742$ *Other Debt includes Notes Payable and Special Obligation Bonds. The following is a summary of changes in the long-term debt from business-type activities included on the government-wide statement of net position for the year ended June 30, 2025: Business-Type Other Revenue Activities Debt*Bonds Total Debt payable June 30, 2024 1,707,399$ 48,135,321$ 49,842,720$ Discount/Premium Amortization - (57,739) (57,739) Issued - - - Retired (347,032) (4,223,000) (4,570,032) Debt payable June 30, 2025 1,360,367$ 43,854,582$ 45,214,949$ *Other Debt includes Special Obligation Bonds Bonds payable for governmental and business-type activities at June 30, 2025 are comprised of the following individual issues: 39 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS – Continued $16,943,000 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 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 $16,943,000 $1,255,718 $ 439,062 $18,637,780 Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were issued by the City on June 19, 2012. A 1% administrative fee and a 1.43% interest rate were originally charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to .5%. Principal was disbursed on this loan as needed. The proceeds of the bond issue were used to acquire, construct, extend, and improve the existing sewerage system. Principal payments are made annually on July 1, while interest payments are made semi -annually on January 1 and July 1. 40 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS - Continued $1,763,000 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 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 $ 1,763,000 $ 126,233 $ 45,407 $ 1,934,640 Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were issued by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were originally charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to .5%. Principal was disbursed on this loan as needed. The proceeds of the bond issue were used to acquire, construct, extend, and improve the existing sewerage system. Principal payments are made annually on July 1, while interest payments are made semi -annually on January 1 and July 1. 41 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS - Continued $19,395,000 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 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 $19,395,000 $1,393,961 $ 501,424 $21,290,385 Sewerage System Revenue Bonds through the State of Missouri – Direct Loan Programs were issued by the City on June 18, 2013. A 1% administrative fee and a 1.39% interest rate were originally charged on this loan. Effective January 1, 2018 the administrati ve fee was reduced to .5%. Principal was disbursed on this loan as needed. The proceeds of the bond issue were and will be used to acquire, construct, extend, and improve the existing sewerage system. Principal payments are made annually on July 1, while interest payments are made semi -annually on January 1 and July 1. $2,940,000 Refunding Special Obligation Bonds, Series 2022 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 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 $ 2,940,000 $ 220,096 $3,160,096 42 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS - Continued 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 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. Pr incipal 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 savings of $367,693. 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. $11,235,000 Special Obligation Bonds, Series 2016 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 2026 2.000% $ 1,460,000 $ 343,119 $ 1,803,119 2027 2.125% 1,505,000 313,919 1,818,919 2028 3.000% 1,550,000 281,937 1,831,937 2029 4.000% 1,625,000 235,438 1,860,438 2030 4.000% 1,715,000 170,437 1,885,437 2031 3.000% 1,190,000 101,838 1,291,838 2032 3.000% 430,000 66,137 496,137 2033 3.000% 450,000 53,238 503,238 2034 3.000% 470,000 39,737 509,737 2035 3.000% 490,000 25,638 515,638 2036 3.125% 350,000 10,937 360,937 Total $11,235,000 $1,642,375 $12,877,375 43 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS - Continued 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. $8,710,000 Special Obligation Bonds, Series 2018 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 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 $2,249,835 $10,959,835 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. 44 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS - Continued 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. $5,535,000 Waterworks Refunding Revenue Bonds, Series 2019 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 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 $ 5,535,000 $ 707,400 $ 6,242,400 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. 45 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS - Continued $13,645,000 Special Obligation Bonds, Series 2020 due as follows: Year Ending Interest Principal Interest June 30, Rate Due Due Total 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 $13,645,000 $1,769,747 $15,414,747 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 $4,717,687 for the governmental and business-type activities, respectively. 46 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE F - LONG-TERM OBLIGATIONS - Continued The cash and investments available to service the special obligation bonds are $-0- and $12,456 in governmental activities and business-type activities, respectively. The annual requirements to amortize all debt outstanding as of June 30, 2025 including total interest payments of $9,365,365 and total administrative fees of $985,893 are as follows: Special Year Ending Obligation Revenue June 30,Bonds Bonds Total 2026 4,149,329$ 5,223,256$ 9,372,585$ 2027 4,165,447 5,242,331 9,407,778 2028 4,168,573 5,257,543 9,426,116 2029 4,195,044 5,278,587 9,473,631 2030 4,217,683 5,292,134 9,509,817 2031 5,375,748 5,310,306 10,686,054 2032 4,923,190 5,327,924 10,251,114 2033 4,737,063 4,456,949 9,194,012 2034 4,069,456 4,476,007 8,545,463 2035 2,049,583 2,240,168 4,289,751 2036 360,937 - 360,937 Total 42,412,053$ 48,105,205$ 90,517,258$ Interest expense was charged to functions as follows in the statement of activities: Governmental Activities: Interest and Other Costs $1,011,952 Total $1,011,952 Business-Type Activities: Sewer $ 765,983 Solid Waste 40,897 Water 136,829 Total $ 943,709 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 $40,684,086. 47 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 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, 2025, the bonds have an aggregate outstanding principal amount payable of $968,671. NOTE H - 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. 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, 48 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE H - PENSION PLAN - continued 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, 2025 the following employees were covered by the benefits terms: Retirees and Beneficiaries 342 Inactive, Non-retired Members 245 Active Members 327 Total 914 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), 12.5% (Police), 11.1% (Public Safety), and 18.4% (Fire) of annual covered payroll. The original annual required contribution (ARC) was determined as part of the February 28, 20 23 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, 2025, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of February 28, 2025. 49 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE H – PENSION PLAN - continued 6. Actuarial Assumptions The total pension liability in the February 28, 2025 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 6.55% including wage inflation Investment Rate of Return 7.00% net of investment expenses The healthy retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115 percent of the PubG-2010 retiree for males and females. The disabled retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115 percent of the PubNS-2010 disabled retiree mortality table for males and females. The pre- retirement mortality tables used were 75 percent of the PubG-2010 employee mortality table for males and females of general groups and 75 percent of the PubS-2010 employee mortality table for males and females of the Police, Fire, and Public Safety groups. Mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scale to the above described tables. The actuarial assumptions used in the February 28, 2025 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: Weighted Average Target Long-Term Expected Asset Class Allocation Real Rate of Return Alpha 5.00% 1.76% Equity 39.00% 3.39% Fixed Income 23.00% 3.54% Real Assets 33.00% 2.68% Strategic Assets 7.00% 2.83% Cash/Leverage -7.00% -0.86% 50 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE H – 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. Changes in the Net Pension Asset Plan Fiduciary Total Pension Net Pension Net Position Liability Asset (a)(b)(a) - (b) Balances at 6/30/2024 123,527,496$ 118,076,201$ 5,451,295$ Changes for the year: Service cost - 2,341,195 (2,341,195) Interest - 8,130,344 (8,130,344) Change in Benefit Terms - - - Difference between expected and actual experience - 2,913,635 (2,913,635) Contributions - employer 2,299,145 - 2,299,145 Net investment income 7,609,446 - 7,609,446 Benefit payments, including refunds (6,264,427) (6,264,427) - Administrative expense (104,194) - (104,194) Other changes 809,216 - 809,216 Net changes 4,349,186 7,120,747 (2,771,561) Balances at 6/30/2025 127,876,682 125,196,948 2,679,734 Increase (Decrease) 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. 51 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE H – PENSION PLAN - Continued Current Single Discount 1% Decrease Rate Assumption 1% Increase 6.00% 7.00% 8.00% $14,965,536 $2,679,134 $(17,195,420) 9. Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the fiscal year ended June 30, 2025 the City recognized pension expense of $1,895,565. The employer reported deferred outflows and inflows of resources related to pensions from the following sources: Net Deferred Deferred Outflows Outflows Inflows (Inflows) of Resources of Resources of Resources Differences in experience $ 5,196,909 $ (197,065) $ 4,999,844 Differences in assumptions -0- (111,652) (111,652) Excess (deficit) in investment returns 5,243,176 (5,338) 5,237,838 Total $ 10,440,085 $ (314,055) $ 10,126,030 Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended: 2026 $ 4,992,011 2027 2,847,710 2028 1,508,357 2029 609,929 2030 168,023 Thereafter -0- Total $ 10,126,030 52 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE H – PENSION PLAN - continued 10. Payable to the Pension Plan At June 30, 2025 the City reported a payable of $173,126 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2025. NOTE I – POSTRETIREMENT HEALTHCARE BENEFITS 1. Description The City follows the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. In addition to the relevant disclosures within this note related to GASB Statement No. 75, the financial statements reflect a long -term liability and related expenses of $8,083,645 and $874,556, 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 provi de 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, 2025 NOTE I – POSTRETIREMENT HEALTHCARE BENEFITS - Continued 3. Employees Covered by Benefit Terms As of June 30, 2025, the following employees were covered by the benefit terms: Retirees 34 Active 84 Total 118 4. Total OPEB Liability The City’s total OPEB liability of $8,958,201 was measured as of June 30, 2025, and was determined by an actuarial valuation date of June 30, 2024 with results actuarially projected to the June 30, 2025 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 - 5.20% as of June 30, 2025 and 4.21% as of June 30, 2024 Healthcare cost trend rates - Medical / Rx cost trend rate of 6.25% for 2025, gradually decreasing to an ultimate rate of 4.5% for 2032 and beyond Dental cost trend rate of 4.0% for 2026 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, 2025 NOTE I – POSTRETIREMENT HEALTHCARE BENEFITS - Continued 6. Changes in the Total OPEB Liability Balance at June 30, 2024 $ 9,833,499 Changes for the Year: Service Cost 157,085 Interest on Total OPEB Liability 403,414 Effect of Economic/Demographic Gains or Losses 91,331 Effect of Assumptions Changes or Inputs (702,018) Benefit Payments (825,110) Net Changes (875,298) Balance at June 30, 2025 $ 8,958,201 7. Sensitivity Analysis The following presents the total OPEB liability of the City, calculated using the discount rate of 5.20%, 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 (6.20%) or lower (4.20%) than the current rate. Healthcare Cost Trend Rates 1% Decrease Rate Assumption 1% Increase Net OPEB liability 9,616,011$ 8,958,201$ 8,355,788$ Sensitivity of Net OPEB Liability as of June 30, 2025 to the Healthcare Cost Trend Rate Assumption The following presents the total OPEB liability of the City, calculated using the current healthcare cost trend rates as well as what the City’s total OPEB liability would be if it were calculated using trend rates that are one percentage point higher or lower than the current trend rates. Healthcare Cost Trend Rates 1% Decrease Rate Assumption 1% Increase Net OPEB liability 8,224,332$ 8,958,201$ 9,781,601$ Sensitivity of Net OPEB Liability as of June 30, 2025 to the Healthcare Cost Trend Rate Assumption 55 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE I – 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, 2025, the City recognized OPEB expense of $250,647. At June 30, 2025, 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 $ 592,356 $ (852,360) Changes of assumptions or other inputs 392,205 (215,877) Total $ 984,561 $ (1,068,237) 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: 2026 $ (338,825) 2027 192,905 2028 62,444 2029 -0- 2030 -0- Thereafter -0- Total $ (83,476) NOTE J - INTEREST EXPENSE Interest and handling charges totaling $1,064,318, excluding $222,767 of inter-fund interest, were incurred by governmental funds during the year ended June 30, 2025. Interest and handling charges totaling $943,709, excluding $8,871 of inter-fund interest, were incurred by proprietary funds during the year ended June 30, 2025. No interest cost was capitalized as part of the cost of assets constructed during the period. The City makes transfers between various funds for routine and normal operating expenses and for capital asset acquisitions. 56 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE K - INTER-FUND ACTIVITY A. The following is a summary of inter-fund transfers for the year ended June 30, 2025: Fund Transfer From Transfer To General Fund 5,672,004$ 6,473,344$ Park and Recreation Fund 28,943 1,526,893 Park & Development Foundation 21,000 - Public Safety Trust Fund II 1,633,280 3,284,561 Casino Revenue Fund 593,122 2,624 Riverfront Region Economic Dev Fund - 193,122 Motor Fuel Tax Fund 1,543,393 - Park/Storm Water Sales Tax - Cap 3,472,390 208 Fire Sales Tax 3,284,561 - Parks/Storm Water Sales Tax 1,688,629 - Capital Improvements Sales Tax 1,437,840 400,000 Airport Fund - 865,327 Sewer System Improvements 3,068,126 - Stormwater System Improvements Ph 2 - 151,501 Sewer Fund - 4,756,756 Water Fund - 1,450,944 Indoor Sportsplex - 127,517 Sporting Complexes - 829,232 Park System Improvements Ph 2 - 1,641,259 Fringe Benefits Fund - 560,000 Risk Management Fund - 180,000 22,443,288$ 22,443,288$ B. The following is a summary of inter-fund balances as of June 30, 2025: Advance to/from other funds: Advances from Advances to Casino Revenue Fund $ 1,606,675 $ -0- Airport Fund -0- 1,146,976 Solid Waste Fund -0- 459,699 $ 1,606,675 $ 1,606,675 57 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE K - INTER-FUND ACTIVITY - Continued 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 L – GOVERNMENTAL FUND BALANCES REPORTING In order to improve the usefulness and understandability of governmental fund balance information, the Governmental Accounting Standards Board issued Statement No. 54 in which it classified fund balance into the following categories: Nonspendable, Restricted, Committed, Assigned, and Unassigned. Definitions of each category and a reconciliation of how the City of Cape Girardeau reported its Fund Balance follow. Nonspendable Fund Balance – Includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes long-term receivables that are not currently available for expenditure. These financial statements reflect non-spendable fund balances of $122,629 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 $474,462 and long-term advance receivables of $1,606,675 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 $5,497,483 are restricted by the City Charter to use during officially declared emergencies. Special revenue fund balances totaling $51,363,424 are restricted by their enabling legislation. $1,695,165 in capital project fund balances are restricted as the result of special revenue transfers and unspent bond proceeds. 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. 58 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE L – GOVERNMENTAL FUND BALANCES REPORTING - continued 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, r estricted, 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. General Airport Non-Major Fund Fund Funds Total Fund balances Nonspendable: Prepaid expenses 357,970$ 25,434$ 91,058$ 474,462$ Long-term advance - - 1,606,675 1,606,675 Mausoleum 122,629 - - 122,629 Restricted for: Emergencies 4,385,718 - 1,111,765 5,497,483 Undistributed TIF revenue 85,461 - - 85,461 Convention and tourism - - 7,342,198 7,342,198 Public safety - - 640,424 640,424 Street projects - - 27,767,202 27,767,202 Sewer system projects - - 6,339,759 6,339,759 Parks and recreation - - 5,481,217 5,481,217 Other capital projects - - 5,402,328 5,402,328 Committed: Other capital projects - - 5,669,459 5,669,459 Assigned to: Parks and recreation - - 2,271,507 2,271,507 Encumbrances 48,202 - - 48,202 Public safety - - 921,442 921,442 Unassigned:19,608,668 (2,071,078) (66,628) 17,470,962 24,608,648$ (2,045,644)$ 64,578,406$ 87,141,410$ 59 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE M - PROPRIETARY FUNDS RESTRICTED NET POSITION AND RESTRICTED CASH EQUIVALENTS AND INVESTMENT At June 30, 2025, net position restricted for depreciation and replacement was $150,000 for the City’s Water Fund, and net position restricted for emergencies were $781,394, $1,047,053, $847,313, $120,910, $141,055 and $175,831 for the City’s Sewer, Water, Solid Waste, Golf Course, Indoor Sporting Complex, and Sporting Complex, respectively. At June 30, 2025, the City’s Sewer Fund had restricted cash equivalents in sinking reserve funds for Revenue Bonds in the amount of $4,730,143. NOTE N - 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 O - RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; cyber-attacks; and employee health benefits. These risks, with the exception of those discussed in the following paragraphs, are covered by commercial insurance. Settled claims have not exceeded this commercial coverage in any of the past fifteen fiscal years. The City’s insurance coverage is as follows: Commercial general liability, law enforcement liability, public officials errors and omissions, and employment-related practices liability is carried by 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. 60 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE O - RISK MANAGEMENT – continued Property insurance is carried by Chubb Group of Insurance Companies/Federal Insurance Company – Producer Sunstar Insurance Group, LLC DBA W. E. Walker Lakenan. Equipment coverage is carried by Travelers Property Casualty Company – Producer Sunstar Insurance Group, LLC DBA W. E. Walker Lakenan. The City has established self-insurance plans for employees’ health insurance and workers’ compensation. Both of these are accounted for using internal service funds. Under each plan, the City is substantially self-insured and uses an administrator to handle claims management. The City provided health coverage to its employees through a self -insured plan administered by 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 administr ator for claims paid up to the specific stop loss amount of $150,000 per employee during each calendar year included in the current fiscal year. 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: 61 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE O - RISK MANAGEMENT - Continued NOTE P - CONCENTRATION OF CREDIT RISK/BAD DEBT ALLOWANCE The City has uncollateralized utility accounts receivable generated within a limited geographical region primarily consisting of its City limits. The City also has taxes, special assessments, and user fees receivable which are concentrated among its citizens. Some of these items attach as liens against real and personal property. The maximum accounting loss is the amount shown as utility charges receivable on the statement of net position. At June 30, 2025, utility receivables totaled $2,986,532. On the financial statements, the utility receivables are shown net of the allowance for doubtful accounts of $50,404. This results in net utility receivable of $2,936,128. During the year ended June 30, 2025, the allowance was decreased by $79 and accounts totaling $74,530 were written off. Health Workers' Insurance Compensation Total Balance June 30, 2020 134,000$ 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 307,000$ 456,100$ 763,100$ Provisions for Incurred Claims 2,945,489 639,833 3,585,322 Payment of Claims (2,849,489) (768,633) (3,618,122) Balance June 30, 2025 403,000$ 327,300$ 730,300$ CLAIMS LIABILITIES RECONCILIATION 62 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE Q - COMMITMENTS AND CONTINGENCIES 1. Litigation Various claims and lawsuits are pending against the City. In the opinion of City management, the potential loss on all claims and lawsuits will not be significant to the City’s financial statements. 2. Grant Audit The City receives Federal and State Grants for specific purposes that are subject to review and audit by various Federal and State agencies. Such audits could result in a request for reimbursement by any of the Federal and State agencies for expenditures disallowed under the terms and conditions of the appropriate agency. In the opinion of City management, such disallowances, if any, will not be significant. 3. Construction Commitments As of June 30, 2025, the City had construction commitments outstanding of $10,595,696. The construction commitments represent incomplete portions of contracts entered into to construct various street projects, youth ballfield expansion, water and sewer projects, and equipment purchases. These contracts are expected to be completed within the next fiscal year. 4. Encumbrances As of June 30, 2025, the City had encumbrances outstanding of $12,779,697. NOTE R – PRIOR PERIOD ADJUSTMENTS The net position of the business-type activities and the fund balance of the Softball Complex Fund were decreased by $5,353 as of June 30, 2025, from long term lease receivables that were entered into a prior year and not property recognized. NOTE S - TAX ABATEMENTS The City has entered into real property tax abatement agreements with developers pursuant to provisions of Chapter 353 of the Revised Statutes of Missouri. During the first 10 years of abatement, 100% of the incremental increase in real property taxes on the land and 100% of the real property taxes on all improvements are abated. During the next 15 years, between 50% and 100% of the incremental real property taxes on all land and all land improvements are abated. During the current fiscal year $545 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. 63 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE T - CONTINGENCY 1. In July 2007, the City entered into a development agreement with Greater Missouri Builders, Inc. (GMB) to reimburse them for costs associated with the Town Plaza Redevelopment Project. In conjunction with this agreement, the City established the Town Plaza Community Improvement District (CID) and determined the project area to be blighted pursuant to Chapter 353 of the Missouri Revised Statutes. This project involved the conversion of the former Sears facility into a call center for National Asset Recover Services (NARS) and other various improvements, such as facade improvements, parking facilities, roof reconstruction, and HVAC enhancements. Tot al reimbursements to GMB for redevelopment costs were limited to $3.6 million plus 7.5% interest. These reimbursements will be made from incremental County and City sales tax revenues, an additional CID sales tax, and real estate tax abatements. Reimbursements from incremental County and City sales tax revenue will be limited to $1.2 of the $3.6 million total. Incremental County and City sales tax revenue was defined as the difference in future tax revenues from the City’s 1% general sales tax and .5% capital improvement sales tax and half the County’s .5% general sales tax and the revenues from these taxes from the project area in calendar year 2006. The CID implemented a 1% sales tax. Improvements to the redevelopment project will receive 100% real estate tax abatement for the first 10 years and 50% real estate tax abatement for the next 15 years. The current Sears facility will receive 50% real estate tax abatement for 25 years. Based on 2006 assessed values the abatement of City taxes on the unimproved Sears facility would be $628. Beginning in year six of the agreement, 50% of the gross rentals from the NARS site will be used to supplement the incremental sales tax revenues. Reimbursements from incremental sales tax revenues expire with repayment of the amount to be paid by incremental sales tax or 20 years, whichever comes first. This project was completed at a cost of $3,203,308. Reimbursement from incremental County and City sales tax revenue is limited to $1,164,839. The City and the County are obligated to make quarterly payments as may lawfully be made from funds budgeted and appropriated for that purpose by the City and County. During the fiscal year ended June 30, 2025, the City incurred payments of $99,277 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 64 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE T – CONTINGENCY - continued development of a 60 acre retail development, and the City and County agreed to reimburse the local business for the $2,998,434 cost of these improvements plus 4% interest with quarterly payments from available net sales tax revenue generated from any businesses operations located in the development. Available revenue is defined by the agreement as all the net sales tax revenue generated by two .25% City capital improvement sales taxes and the .50% City transportation sales tax and half of the net sales tax revenue generated by a .50% County sales tax. All City sales taxes have expiration dates that could occur before the total costs of the improvements are reimbursed to the developer. The County sales tax has no expiration date. No provision is made to replace revenues from the City sales taxes that expire if they are not extended. The development agreement remains in effect until the total cost of the public improvements is reimbursed to the developer. In October 2012, the City of Cape Girardeau and Cape Girardeau County entered into an amendment to the original development agreement. Under the agreement, the local developer agreed to pay for additional public improvements incurred in conjunction with the development of the 60 acre retail development, and the City and County agreed to reimburse the local business for the $2,024,360 cost of these improvements from available net sales tax revenue generated from an Academy Sports retail store. Academy Spor ts 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. 65 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE T – CONTINGENCY - continued 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, 2025 the City incurred payments of $145,659 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. As of October 3, 2017, the Company had substantially completed the project, having incurred $6,938,689 in costs under the development agreement. The City is required by the agreement to reimburse the developer for these costs, up to a maximum of $6,250,000, from available revenues. Available revenue is defined by the agreement as all the net sales tax revenue generated by the 1% general sales tax and two .25% capital improvement sales taxes relating to the operations of the hotel, restaurant, and conference center. One of the capital improvement sales taxes has an expiration date that could occur before the total costs of the improvements are reimbursed to the developer. No provision is made to replace revenues from the City sales taxes that expire if they are not extended. The development agreement expires 20 years from December 31, 2017, or as soon as the City has completely reimbursed the Company for the total of reimbursable costs, if that happens first. The City is obligated only to make quarterly payments as may lawfully be made from funds budgeted and appropriated for that purpose by the City. During the fiscal year ended June 30, 2025, the City incurred $97,729 under the development agreement. NOTE U – RELATED PARTY TRANSACTION The City receives marketing and advertising services from a local marketing firm. The marketing firm is owned and operated by the spouse of a city council member. As of June 30, 2025, $178,203 has been paid to the marketing firm. 66 City of Cape Girardeau, Missouri NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2025 NOTE V – DEFICIT FUND BALANCE The City has a deficit fund balance at June 30, 2025 as follows: Deficit Fund Balance Airport Fund $2,045,644 REQUIRED SUPPLEMENTAL INFORMATION Variance with Original Final Actual Final Budget REVENUES: Taxes 25,269,464$ 25,269,464$ 27,116,972$ 1,847,508$ Licenses and Permits 2,094,784 2,094,784 2,200,888 106,104 Intergovernmental 293,951 293,951 541,844 247,893 Charges for Services 231,669 231,669 162,239 (69,430) Internal Charges 1,173,247 1,173,247 1,446,453 273,206 Fines and Forfeits 246,274 246,274 250,592 4,318 Miscellaneous 352,959 352,959 369,134 16,175 Special Assessments 33,242 33,242 55,843 22,601 Investment Revenue 336,659 336,659 1,024,749 688,090 TOTAL REVENUES 30,032,249$ 30,032,249$ 33,168,714$ 3,136,465$ EXPENDITURES: Current: Administrative Services 4,442,278$ 4,310,998$ 3,728,043$ 582,955$ Development Services 3,120,574 3,112,328 2,839,448 272,880 Parks and Recreation 1,776,050 1,796,407 1,790,567 5,840 Public Safety 19,158,071 19,332,825 19,259,496 73,329 Public Works 2,570,635 2,586,299 2,520,294 66,005 Capital Outlay: Administrative Services 30,000 8,500 - 8,500 Development Services - - - - Parks and Recreation - - 2,300 (2,300) Public Safety - 400,997 438,166 (37,169) TOTAL EXPENDITURES 31,097,608$ 31,548,354$ 30,578,314$ 970,040$ REVENUES OVER (UNDER) EXPENDITURES (1,065,359)$ (1,516,105)$ 2,590,400$ 2,166,425$ OTHER FINANCING SOURCES (USES): Compensation for Damages -$ -$ 1,937$ 1,937$ Settlements - - 136,403 136,403 Asset Disposition - - 21,841 21,841 Transfers In 6,452,500 6,452,500 6,473,344 20,844 Transfers Out (5,400,769) (5,521,494) (5,672,004) (150,510) TOTAL OTHER FINANCING SOURCES (USES)1,051,731$ 931,006$ 961,521$ 30,515$ TOTAL REVENUES OVER (UNDER) EXPENDITURES (13,628)$ (585,099)$ 3,551,921$ 2,196,940$ FUND BALANCE, July 1, 2024 21,004,334 21,004,334 21,004,334 - FUND BALANCE, June 30, 2025 20,990,706$ 20,419,235$ 24,556,255$ 2,196,940$ Budgeted Amounts CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND Year Ended June 30, 2025 See Independent Auditors' Report. 67 Variance with Original Final Actual Final Budget REVENUES: Intergovernmental 1,567,000$ 1,567,000$ 4,541,322$ 2,974,322$ Charges for Services 641,147 641,147 712,662 71,515 Miscellaneous 348,028 348,028 410,552 62,524 Investment Revenue - - 119,512 119,512 TOTAL REVENUES 2,556,175$ 2,556,175$ 5,784,048$ 3,227,873$ EXPENDITURES: Current: Development Services 1,933,416$ 1,933,416$ 2,350,366$ (416,950)$ Capital Outlay: Development Services 4,200,000 5,123,043 4,501,346 621,697 TOTAL EXPENDITURES 6,133,416$ 7,056,459$ 6,851,712$ 204,747$ REVENUES OVER (UNDER) EXPENDITURES (3,577,241)$ (4,500,284)$ (1,067,664)$ 3,023,126$ OTHER FINANCING SOURCES (USES): Advance Repayment (88,086)$ (88,086)$ (88,086)$ -$ Transfers In 865,327 865,327 865,327 - TOTAL OTHER FINANCING SOURCES (USES)777,241$ 777,241$ 777,241$ -$ TOTAL REVENUES OVER (UNDER) EXPENDITURES (2,800,000)$ (3,723,043)$ (290,423)$ 3,023,126$ FUND BALANCE, July 1, 2024 (845,253) (845,253) (845,253) - FUND BALANCE, June 30, 2025 (3,645,253)$ (4,568,296)$ (1,135,676)$ 3,023,126$ CITY OF CAPE GIRARDEAU, MISSOURI STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - AIRPORT FUND Year Ended June 30, 2025 Budgeted Amounts See Independent Auditors' Report. 68 69 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2025 BUDGETS AND BUDGETARY ACCOUNTING The City adopts annual operating budgets for all funds except Storm Water Projects from Park / Storm Water Sales Tax Fund, Park Improvement Projects from Park / Storm Water Sales Tax Fund, and Park Improvement Projects from Park/Storm Water Sales Tax Fund Phase 2 - which have project length budgets - and the Cape Girardeau Municipal Development Foundation, and the Cape Girardeau Parks Development Foundation, whose main purposes are to solicit and collect donations. The City follows these procedures in establishing the budgetary data reflected in the financial statements. 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year ending the following June 30th at the first meeting of June each year. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to July 1, the budget is legally enacted through passage of an ordinance. 4. The City Manager is authorized to transfer budgeted amounts between programs within any department; however, any revisions that alter the total appropriations of any department must be approved by the City Council. Departments may not legally exceed their appropriations without approval from the City Council. Appropriations expire at the end of the year; however, outstanding encumbrances at the end of the year are honored by the City. 5. Formal budgetary integration is employed as a management control device during the year for all funds. 6. Budgets for all funds are adopted on a budgetary basis. 7. If, during the fiscal year, the City Manager certifies there are additional revenues to appropriate, unencumbered appropriation balances within a department, or there is an emergency situation, the City Council may amend the initial budget by ordinance. The initial budget was adopted by the City Council on June 3, 2024 and amended on September 16, 2024 and November 18, 2024. The initial budget and final amended budget are both reflected in the financial statements. 70 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2025 BUDGETS AND BUDGETARY ACCOUNTING - Continued The statement of revenues, expenditures, and changes in fund balances - governmental funds reports revenues and expenditures on the modified accrual basis of accounting in accordance with GAAP. The statement of revenues, expenditures, and changes in fund balances - budget and actual (budget basis) for all governmental fund types is prepared on a budgetary basis which includes encumbrances as expenditures. The following reconciliation adjusts GAAP basis to budget basis: General Fund Airport Fund GAAP Basis Net Income 3,550,859$ (2,724,934) Increase due to: Prior Year-End Encumbrances: Development Services 8,030 3,770 Public Safety 6,361 - Public Works 21,460 - Capital Outlay 40,478 3,079,292 Encumbrance Revenue (24,436) 251,213 Adjust investments due to Market (1,577) (470) 50,316$ 3,333,805$ Decrease due to: Current Year-End Encumbrances Development Services 6,149 20,259 Public Safety 23,057 - Capital Outlay 19,000 3,181,432 Advance Repayment - 88,086 Encumbrance Revenue - (2,390,312) Adjust investments due to Market 1,048 (171) 49,254$ 899,294 Budget Basis Net Income 3,551,921$ (290,423)$ Per Final Budget Basis TB 3,551,921 (290,423) 71 City of Cape Girardeau, Missouri NOTES TO BUDGETARY COMPARISON SCHEDULES June 30, 2025 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. 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fiscal Year Ended June 30, Total Pension Liability Service Costs 1,101,203$ 1,071,830$ 928,436$ 933,765$ 1,003,826$ 1,013,062$ 863,072$ 847,662$ 813,616$ 795,771$ Interest on the Pension Liability 3,851,410 3,696,708 3,298,026 3,188,809 3,328,657 3,125,720 2,770,920 2,668,902 2,567,279 2,346,499 Changes of Benefit Terms - - 2,779,169 - - - 3,061,598 - - - Differences Between Expected and Actual Experience of the Total Pension Liability 1,217,650 164,315 1,093,970 (313,157) (1,736,406) 517,894 (113,254) (568,794) (678,078) (183,850) Changes of Assumptions - - - - (849,035) - - - - 1,388,735 Benefit Payments, Including Refunds of Employee Contributions (2,820,524) (2,656,777) (2,298,536) (2,196,315) (1,948,702) (1,760,611) (1,763,786) (1,340,034) (1,296,403) (1,324,473) Net Change in Total Pension Liability 3,349,739 2,276,076 5,801,065 1,613,102 (201,660) 2,896,065 4,818,550 1,607,736 1,406,414 3,022,682 Total Pension Liability - Beginning 55,865,259 53,589,183 47,788,118 46,175,016 46,376,676 43,480,611 38,662,061 37,054,325 35,647,911 32,625,229 Total Pension Liability - Ending (A)59,214,998$ 55,865,259$ 53,589,183$ 47,788,118$ 46,175,016$ 46,376,676$ 43,480,611$ 38,662,061$ 37,054,325$ 35,647,911$ Plan Fiduciary Net Position Contributions - Employer 938,444$ 886,180$ 3,271,227$ 929,906$ 888,369$ 864,919$ 3,608,999$ 847,162$ 745,001$ 820,228$ Contributions - Employees - - - - - - - - 16,008 - Net Investment Income 3,713,691 3,044,562 2,153,345 43,036 13,278,050 637,692 3,002,641 4,823,411 4,214,232 (82,162) Benefit Payments, Including Refunds of Employee Contributions (2,820,524) (2,656,777) (2,298,536) (2,196,315) (1,948,702) (1,760,611) (1,763,786) (1,340,034) (1,296,403) (1,324,473) Pension Plan Administrative Expense (63,678) (64,078) (72,613) (51,934) (48,802) (64,681) (58,089) (40,041) (38,351) (37,018) Other (Net Transfers)439,564 (1,964,592) (76,886) (740,238) (270,930) 32,102 (122,011) (225,107) (15,167) (298,285) Net Change in Plan Fiduciary Net Position 2,207,497 (754,705) 2,976,537 (2,015,545) 11,897,985 (290,579) 4,667,754 4,065,391 3,625,320 (921,710) Plan Fiduciary Net Position - Beginning 60,115,458 60,870,163 57,893,626 59,909,171 48,011,186 48,301,765 43,634,011 39,568,620 35,943,300 36,865,010 Plan Fiduciary Net Position - Ending (B)62,322,955$ 60,115,458$ 60,870,163$ 57,893,626$ 59,909,171$ 48,011,186$ 48,301,765$ 43,634,011$ 39,568,620$ 35,943,300$ Net Pension Liability - Ending (A) - (B)(3,107,957) (4,250,199) (7,280,980) (10,105,508) (13,734,155) (1,634,510) (4,821,154) (4,971,950) (2,514,295) (295,389) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 105.25%107.61%113.59%121.15%129.74%103.52%111.09%112.86%106.79%100.83% Covered Valuation Payroll 10,122,825$ 9,463,554$ 9,430,171$ 8,977,444$ 9,337,017$ 10,105,920$ 9,908,724$ 9,841,879$ 9,707,798$ 9,109,297$ Net Pension Liability as a Percentage of Covered Valuation Payroll -30.70%-44.91%-77.21%-112.57%-147.09%-16.17%-48.66%-50.52%-25.90%-3.24% Notes to the Schedule: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information is presented for those years for which information is available. CITY OF CAPE GIRARDEAU, MISSOURI SUPPLEMENTARY INFORMATION MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS GENERAL DIVISION June 30, 2025 72 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fiscal Year Ended June 30, Total Pension Liability Service Costs 499,594$ 484,445$ 382,120$ 404,842$ 439,563$ 418,343$ 370,763$ 367,842$ 345,371$ 309,133$ Interest on the Pension Liability 2,083,511 1,945,492 1,670,148 1,594,959 1,683,903 1,593,730 1,425,037 1,377,421 1,327,202 1,248,307 Changes of Benefit Terms - - 1,197,832 - - - 839,984 - - - Differences Between Expected and Actual Experience of the Total Pension Liability 553,145 891,737 1,878,133 294,313 (1,126,893) 343,900 767,339 (5,046) 21,040 (83,909) Changes of Assumptions - - - - (262,033) - - - - 481,968 Benefit Payments, Including Refunds of Employee Contributions (1,463,669) (1,254,725) (1,235,673) (1,182,846) (1,134,760) (1,110,912) (1,088,863) (1,081,050) (945,268) (827,008) Net Change in Total Pension Liability 1,672,581 2,066,949 3,892,560 1,111,268 (400,220) 1,245,061 2,314,260 659,167 748,345 1,128,491 Total Pension Liability - Beginning 30,238,322 28,171,373 24,278,813 23,167,545 23,567,765 22,322,704 20,008,444 19,349,277 18,600,932 17,472,441 Total Pension Liability - Ending (A)31,910,903$ 30,238,322$ 28,171,373$ 24,278,813$ 23,167,545$ 23,567,765$ 22,322,704$ 20,008,444$ 19,349,277$ 18,600,932$ Plan Fiduciary Net Position Contributions - Employer 517,754$ 457,520$ 1,321,768$ 471,871$ 481,997$ 449,883$ 1,359,472$ 392,375$ 366,721$ 337,743$ Contributions - Employees - - - - - - - - - - Net Investment Income 1,867,590 1,509,351 997,027 21,758 6,219,863 300,296 1,519,462 2,382,243 2,267,369 (46,280) Benefit Payments, Including Refunds of Employee Contributions (1,463,669) (1,254,725) (1,235,673) (1,182,846) (1,134,760) (1,110,912) (1,088,863) (1,081,050) (945,268) (827,008) Pension Plan Administrative Expense (19,878) (21,136) (24,050) (16,241) (16,334) (22,319) (19,439) (13,830) (13,148) (12,366) Other (Net Transfers)133,348 36,712 55,480 27,847 (12,112) 84,957 91,515 (42,272) 156,567 50,565 Net Change in Plan Fiduciary Net Position 1,035,145 727,722 1,114,552 (677,611) 5,538,654 (298,095) 1,862,147 1,637,466 1,832,241 (497,346) Plan Fiduciary Net Position - Beginning 30,213,459 29,485,737 28,371,185 29,048,796 23,510,142 23,808,237 21,946,090 20,308,624 18,476,383 18,973,729 Plan Fiduciary Net Position - Ending (B)31,248,604$ 30,213,459$ 29,485,737$ 28,371,185$ 29,048,796$ 23,510,142$ 23,808,237$ 21,946,090$ 20,308,624$ 18,476,383$ Net Pension Liability - Ending (A) - (B)662,299 24,863 (1,314,364) (4,092,372) (5,881,251) 57,623 (1,485,533) (1,937,646) (959,347) 124,549 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 97.92%99.92%104.67%116.86%125.39%99.76%106.65%109.68%104.96%99.33% Covered Valuation Payroll 4,317,167$ 4,217,873$ 3,976,695$ 3,237,682$ 3,836,832$ 4,179,275$ 3,776,550$ 3,943,991$ 3,818,933$ 3,536,454$ Net Pension Liability as a Percentage of Covered Valuation Payroll 15.34%0.59%-33.05%-126.40%-153.28%1.38%-39.34%-49.13%-25.12%3.52% Notes to the Schedule: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information is presented for those years for which information is available. CITY OF CAPE GIRARDEAU, MISSOURI SUPPLEMENTARY INFORMATION MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS POLICE DIVISION June 30, 2025 73 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fiscal Year Ended June 30, Total Pension Liability Service Costs 643,183$ 626,389$ 512,816$ 485,904$ 481,270$ 451,444$ 397,573$ 401,292$ 388,806$ 375,784$ Interest on the Pension Liability 2,080,004 1,944,115 1,763,429 1,685,982 1,741,225 1,662,942 1,505,476 1,472,645 1,452,993 1,336,826 Changes of Benefit Terms - - 815,997.00 - - - 951,134 - - - Differences Between Expected and Actual Experience of the Total Pension Liability 961,492 1,272,292 1,150,659 610,970 (58,849) 466,159 765,218 (152,061) (515,001) 461,181 Changes of Assumptions - - - - (449,014) - - - - 508,788 Benefit Payments, Including Refunds of Employee Contributions (1,977,731) (1,844,082) (1,595,151) (1,781,092) (1,519,412) (1,511,600) (1,437,533) (1,102,750) (1,022,379) (1,148,773) Net Change in Total Pension Liability 1,706,948 1,998,714 2,647,750 1,001,764 195,220 1,068,945 2,181,868 619,126 304,419 1,533,806 Total Pension Liability - Beginning 30,370,328 28,371,614 25,723,864 24,722,100 24,526,880 23,457,935 21,276,067 20,656,941 20,352,522 18,818,716 Total Pension Liability - Ending (A)32,077,276$ 30,370,328$ 28,371,614$ 25,723,864$ 24,722,100$ 24,526,880$ 23,457,935$ 21,276,067$ 20,656,941$ 20,352,522$ Plan Fiduciary Net Position Contributions - Employer 750,111$ 799,103$ 1,307,758$ 475,309$ 441,121$ 369,502$ 1,334,300$ 370,929$ 326,044$ 375,209$ Contributions - Employees - - - - - - - - - - Net Investment Income 1,927,189 1,586,320 1,032,172 30,087 6,873,082 335,978 1,640,175 2,629,862 2,374,115 (40,593) Benefit Payments, Including Refunds of Employee Contributions (1,977,731) (1,844,082) (1,595,151) (1,781,092) (1,519,412) (1,511,600) (1,437,533) (1,102,750) (1,022,379) (1,148,773) Pension Plan Administrative Expense (18,370) (18,594) (21,462) (15,025) (13,864) (17,476) (14,968) (10,585) (10,113) (9,925) Other (Net Transfers)238,087 509,607 (294,573) 625,944 47,327 144,451 (101,158) (28,894) 100,165 18,256 Net Change in Plan Fiduciary Net Position 919,286 1,032,354 428,744 (664,777) 5,828,254 (679,145) 1,420,816 1,858,562 1,767,832 (805,826) Plan Fiduciary Net Position - Beginning 31,603,987 30,571,633 30,142,889 30,807,666 24,979,412 25,658,557 24,237,741 22,379,179 20,611,347 21,417,173 Plan Fiduciary Net Position - Ending (B)32,523,273$ 31,603,987$ 30,571,633$ 30,142,889$ 30,807,666$ 24,979,412$ 25,658,557$ 24,237,741$ 22,379,179$ 20,611,347$ Net Pension Liability - Ending (A) - (B)(445,997) (1,233,659) (2,200,019) (4,419,025) (6,085,566) (452,532) (2,200,622) (2,961,674) (1,722,238) (258,825) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 101.39%104.06%107.75%117.18%124.62%101.85%109.38%113.92%108.34%101.27% Covered Valuation Payroll 4,088,201$ 4,125,543$ 3,943,799$ 3,467,953$ 3,432,689$ 3,442,123$ 3,211,902$ 3,290,770$ 3,283,135$ 3,099,147$ Net Pension Liability as a Percentage of Covered Valuation Payroll -10.91%-29.90%-55.78%-127.42%-177.28%-13.15%-68.51%-90.00%-52.46%-8.35% Notes to the Schedule: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information is presented for those years for which information is available. CITY OF CAPE GIRARDEAU, MISSOURI SUPPLEMENTARY INFORMATION MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS FIRE DIVISION June 30, 2025 74 2025 2024 Fiscal Year Ended June 30, Total Pension Liability Service Costs 97,215$ 29,453$ Interest on the Pension Liability 115,419 758 Changes of Benefit Terms - 1,609,728 Differences Between Expected and Actual Experience of the Total Pension Liability 181,348 (30,211) Changes of Assumptions - - Benefit Payments, Including Refunds of Employee Contributions (2,503) (7,435) Net Change in Total Pension Liability 391,479 1,602,293 Total Pension Liability - Beginning 1,602,293 - Total Pension Liability - Ending (A)1,993,772$ 1,602,293$ Plan Fiduciary Net Position Contributions - Employer 92,836$ 82,414$ Contributions - Employees - - Net Investment Income 100,976 79,191 Benefit Payments, Including Refunds of Employee Contributions (2,503) (7,435) Pension Plan Administrative Expense (2,268) (2,007) Other (Net Transfers)(1,783) 1,442,430 Net Change in Plan Fiduciary Net Position 187,258 1,594,593 Plan Fiduciary Net Position - Beginning 1,594,593 - Plan Fiduciary Net Position - Ending (B)1,781,851$ 1,594,593$ Net Pension Liability - Ending (A) - (B)211,921 7,700 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 89.37%99.52% Covered Valuation Payroll 933,391$ 691,610$ Net Pension Liability as a Percentage of Covered Valuation Payroll 22.70%1.11% Notes to the Schedule: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, information is presented for those years for which information is available. CITY OF CAPE GIRARDEAU, MISSOURI SUPPLEMENTARY INFORMATION MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS PUBLIC SAFETY DIVISION June 30, 2025 75 June 30, 2025 Fiscal Actual Contribution Year Actuarial Contribution Covered as a Percentage Ended Determined Actual Deficiency Valuation of Covered June 30,Contribution Contribution (Excess)Payroll Valuation Payroll 2025 2,416,385$ 2,300,277$ 116,108$ 19,375,303$ 11.87% 2024 2,227,159 2,227,159 - 18,777,125 11.86% 2023 2,231,644 2,213,684 17,960 18,544,042 11.94% 2022 1,945,508 1,874,208 71,300 16,374,625 11.45% 2021 1,873,332 1,812,073 61,259 17,166,508 10.56% 2020 1,683,841 1,683,841 - 17,188,695 9.80% 2019 1,728,666 1,728,666 - 17,300,564 9.99% 2018 1,644,496 1,610,466 34,030 16,990,644 9.48% 2017 1,437,766 1,437,766 - 16,749,343 8.58% 2016 1,533,180 1,533,180 - 16,040,522 9.56% Notes to Schedule: Valuation Date:February 28, 2025 Notes The roll-forward of total pension liability from February 28, 2025 to June 30, 2025 reflects expected service cost and interest reduced by actual benefit payments. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method:Entry Age Normal and Modified Terminal Funding Amortization Method:A level percentage of payroll amortization method is used to amortize the UAAL over a closed period of years. If the UAAL (excluding the UAAL associated with benefit changes) is negative, then this amount is amortized of the greater of (i) the remaining initial amortization period or (ii) 15 years. Remaining Amortization Period:Multiple bases from 10 to 17 years Asset Valuation Method:5-year smoothed market, 20% corridor Inflation:2.75% wage inflation, 2.25% price inflation Salary Increases:2.75% to 7.15%, including wage inflation Investment Rate of Return:7.00%, net of investment expenses Retirement Age:Experience-based table of rates that are specific to the type of eligibility condition. Mortality:The healthy retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115% of the PubG- 2010 Retiree Mortality Table for males and females. The disabled retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115% of the PubNS-2010 Disabled Retiree Mortality Table for males and females. The pre- retirement mortality tables used were 75% of the PubG-2010 Employee Mortality Table for males and females of General groups and 75% of the PubS-2010 Employee Mortality Table for males and females of Police, Fire and Public Safety groups. Mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scale to the above described tables. Other Information:None CITY OF CAPE GIRARDEAU, MISSOURI SUPPLEMENTARY INFORMATION MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM SCHEDULE OF EMPLOYER CONTRIBUTIONS 76 2025 2024 2023 2022 2021 2020 2019 2018 Calendar Year Ended June 30, Total OPEB Liability Service Costs 157,085$ 167,959$ 152,219$ 309,892$ 254,489$ 258,793$ 251,092$ 303,952$ Interest on Total OPEB Liability 403,414 362,673 341,966 248,554 295,897 365,681 428,525 407,566 Effect of Economic/Demographic Gains or Losses (702,018) 535,052 678,313 (1,629,235) (34,266) (231,761) (961,604) (519,247) Effect of Assumptions Changes or Inputs 91,331 539,511 (24,972) (1,029,435) 382,609 1,023,004 271,656 158,158 Benefit Payments (825,110) (762,632) (723,529) (740,913) (715,552) (694,578) (609,858) (608,774) Net Change in Total OPEB Liability (875,298) 842,563 423,997 (2,841,137) 183,177 721,139 (620,189) (258,345) Total OPEB Liability - Beginning 9,833,499 8,990,936 8,566,939 11,408,076 11,224,899 10,503,760 11,123,949 11,382,294 Total OPEB Liability - Ending 8,958,201$ 9,833,499$ 8,990,936$ 8,566,939$ 11,408,076$ 11,224,899$ 10,503,760$ 11,123,949$ Covered Employee Payroll 6,466,811 7,114,045 6,880,663 6,723,215 7,465,766 7,230,766 9,369,121 9,074,209 Total OPEB Liability as a Percentage of Covered Employee Payroll 138.53%138.23%130.67%127.42%152.81%155.24%112.11%122.59% Notes to the Schedule: This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with the current GASB standards, they should not be reported. CITY OF CAPE GIRARDEAU, MISSOURI REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS June 30, 2025 77 SUPPLEMENTAL INFORMATION General Park Riverfront Capital Parks and Convention Downtown A.C. Brase Development Casino Region Economic Motor Improvements Recreation Health and Tourism Business Foundation Foundation Public Safety Revenue Development Fuel Tax Fund Fund Fund Fund District Fund Fund Fund Trust Fund II Fund Fund Fund CURRENT ASSETS: Pooled Cash and Investments 278,577$ 611,173$ 431,248$ 6,919,138$ 216,340$ 112,552$ 897,764$ 1,202,311$ 5,652,540$ 1,250,667$ 2,415,235$ Receivables: Real Estate Taxes, Net - - 66,988 - 295 - - - - - - Property Taxes, Net - - 8,666 - - - - - - - - Sales Tax - - - - - - - - - - - Hotel and Motel Tax - - - 121,812 - - - - - - - Restaurant Tax - - - 213,438 - - - - - - - Special Assessments - - - - - - - - - - 9,251 Other - 245,828 - - - - - - 201,179 36,186 - Motor Fuel Tax - - - - - - - - - - 144,887 Vehicle License Fees - - - - - - - - - - 37,627 Motor Vehicle Sales Tax - - - - - - - - - - 13,925 Grants - - - 23,600 - - - - - - - Inventory - 33,578 - 11,536 - - - - - - - Prepaid Items - 29,809 49,023 8,657 - - 404 - 1,665 1,500 - TOTAL CURRENT ASSETS 278,577$ 920,388$ 555,925$ 7,298,181$ 216,635$ 112,552$ 898,168$ 1,202,311$ 5,855,384$ 1,288,353$ 2,620,925$ NONCURRENT ASSETS: Advances to Other Funds -$ -$ -$ -$ -$ -$ -$ -$ 1,606,675$ -$ -$ TOTAL NONCURRENT ASSETS -$ -$ -$ -$ -$ -$ -$ -$ 1,606,675$ -$ -$ TOTAL ASSETS 278,577$ 920,388$ 555,925$ 7,298,181$ 216,635$ 112,552$ 898,168$ 1,202,311$ 7,462,059$ 1,288,353$ 2,620,925$ CURRENT LIABILITIES: Accounts Payable -$ 180,412$ 8,667$ 40,486$ -$ -$ 1,566$ 24,931$ 49,925$ 3,196$ 122,592$ Salaries and Benefits Payable - 126,336 4,792 5,614 - - - - - - - Other Liabilities - 1,582 - - - - - - - - - Unearned Revenues - 137,682 - - - - - - - - - Deferred Revenues - - 73,221 - - - - - - - 9,251 TOTAL CURRENT LIABILITIES -$ 446,012$ 86,680$ 46,100$ -$ -$ 1,566$ 24,931$ 49,925$ 3,196$ 131,843$ NONCURRENT LIAIBILITIES: Advances from Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL NONCURRENT LIABILITIES -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL LIABILITIES -$ 446,012$ 86,680$ 46,100$ -$ -$ 1,566$ 24,931$ 49,925$ 3,196$ 131,843$ FUND BALANCE: Nonspendable -$ 29,809$ 49,023$ 8,657$ -$ -$ 404$ -$ 1,608,340$ 1,500$ -$ Restricted 278,577 511,195 420,222 7,243,424 216,635 - - 255,938 134,335 20,900 2,489,082 Committed - - - - - - - - 5,669,459 - - Assigned - - - - - 112,552 896,198 921,442 - 1,262,757 - Unassigned - (66,628) - - - - - - - - - TOTAL FUND BALANCE 278,577$ 474,376$ 469,245$ 7,252,081$ 216,635$ 112,552$ 896,602$ 1,177,380$ 7,412,134$ 1,285,157$ 2,489,082$ TOTAL LIABILITIES AND FUND BALANCE 278,577$ 920,388$ 555,925$ 7,298,181$ 216,635$ 112,552$ 898,168$ 1,202,311$ 7,462,059$ 1,288,353$ 2,620,925$ ASSETS LIABILITIES AND FUND BALANCE 78 See Independent Auditors' Report June 30, 2025 CITY OF CAPE GIRARDEAU MISSOURI COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS Capital Capital Improvement Improvement Park/Stormwater Park Sales Tax -Sales Tax -Stormwater Parks/System System Total Transportation Transportation Sewer System General Sales Tax - Stormwater Improvements Improvements Nonmajor Sales Tax Sales Tax Improvements Improvements Capital Fire Sales Sales Tax Phase II Phase II Governmental Trust Fund V Trust Fund VI Fund Fund Fund Tax Fund Fund Fund Fund Funds CURRENT ASSETS: Pooled Cash and Investments 8,886,525$ 15,934,933$ 5,699,612$ 5,083,399$ 3,778,636$ -$ 71,897$ 631,129$ 1,640,512$ 61,714,188$ Receivables: Real Estate Taxes, Net - - - - - - - - - 67,283 Property Taxes, Net - - - - - - - - - 8,666 Sales Tax - 583,476 300,342 300,342 450,513 291,738 150,111 - - 2,076,522 Hotel and Motel Tax - - - - - - - - - 121,812 Restaurant Tax - - - - - - - - - 213,438 Special Assessments - - - - - - - - - 9,251 Other - - - - - - - - - 483,193 Motor Fuel Tax - - - - - - - - 109,721 254,608 Vehicle License Fees - - - - - - - - - 37,627 Motor Vehicle Sales Tax - - - - - - - - - 13,925 Grants 237,363 36,801 - - - - - 431,417 - 729,181 Inventory - - - - - - - - - 45,114 Prepaid Items - - - - - - - - - 91,058 TOTAL CURRENT ASSETS 9,123,888$ 16,555,210$ 5,999,954$ 5,383,741$ 4,229,149$ 291,738$ 222,008$ 1,062,546$ 1,750,233$ 65,865,866$ NONCURRENT ASSETS: Advances to Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,606,675$ TOTAL NONCURRENT ASSETS -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,606,675$ TOTAL ASSETS 9,123,888$ 16,555,210$ 5,999,954$ 5,383,741$ 4,229,149$ 291,738$ 222,008$ 1,062,546$ 1,750,233$ 67,472,541$ CURRENT LIABILITIES: Accounts Payable 86,280$ 314,698$ 46,723$ 259,990$ -$ -$ -$ 676,018$ 610,452$ 2,425,936$ Salaries and Benefits Payable - - - - - - - - - 136,742 Other Liabilities - - - - - - - - - 1,582 Unearned Revenues - - - - - - - - - 137,682 Deferred Revenues - - - - - - - - 109,721 192,193 TOTAL CURRENT LIABILITIES 86,280$ 314,698$ 46,723$ 259,990$ -$ -$ -$ 676,018$ 720,173$ 2,894,135$ NONCURRENT LIAIBILITIES: Advances from Other Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL NONCURRENT LIABILITIES -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL LIABILITIES 86,280$ 314,698$ 46,723$ 259,990$ -$ -$ -$ 676,018$ 720,173$ 2,894,135$ FUND BALANCE: Nonspendable -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,697,733$ Restricted 9,037,608 16,240,512 5,953,231 5,123,751 4,229,149 291,738 222,008 386,528 1,030,060 54,084,893 Committed - - - - - - - - - 5,669,459 Assigned - - - - - - - - - 3,192,949 Unassigned - - - - - - - - - (66,628) TOTAL FUND BALANCE 9,037,608 16,240,512$ 5,953,231$ 5,123,751$ 4,229,149$ 291,738$ 222,008$ 386,528$ 1,030,060$ 64,578,406$ TOTAL LIABILITIES AND FUND BALANCE 9,123,888$ 16,555,210$ 5,999,954$ 5,383,741$ 4,229,149$ 291,738$ 222,008$ 1,062,546$ 1,750,233$ 67,472,541$ LIABILITIES AND FUND BALANCE ASSETS See Independent Auditors' Report. 79 CITY OF CAPE GIRARDEAU MISSOURI COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS June 30, 2025 General Park Riverfront Capital Parks and Convention Downtown A.C. Brase Development Casino Region Economic Motor Improvements Recreation Health and Tourism Business Foundation Foundation Public Safety Revenue Development Fuel Tax Fund Fund Fund Fund District Fund Fund Fund Trust Fund II Fund Fund Fund REVENUES: Taxes -$ -$ 472,641$ 3,338,551$ 26,841$ -$ -$ -$ 2,580,002$ 235,189$ -$ Intergovernmental - 978 12,613 66,715 - - - 45,502 - - 2,243,644 Charges for Services - 1,716,843 - 30,532 - 27,573 92,686 - - - - Special Assessment - - - - - - - - - - 4,449 Miscellaneous - 21,509 - 65,671 75 - 94,102 5,696 - - - Investment Revenue 39,395 38,757 21,357 300,148 9,252 4,692 38,508 74,816 254,833 49,226 94,946 TOTAL REVENUES 39,395$ 1,778,087$ 506,611$ 3,801,617$ 36,168$ 32,265$ 225,296$ 126,014$ 2,834,835$ 284,415$ 2,343,039$ EXPENDITURES: Current: Administrative Services -$ -$ -$ 166$ -$ -$ -$ -$ 110,954$ -$ -$ Development Services - - - 994,380 1,749 - - - 600,555 139,330 - Parks and Recreation - 3,609,239 - - - 3,170 78,410 - 19,429 - - Public Safety - - 492,379 - - - - 73,018 98,168 - - Public Works - - - - - - - - - - 190,449 Capital Outlay: Public Safety - - - - - - - 234,016 280,948 - - Administrative - - - - - - - - 40,085 - - Development Services - - - 187,921 - - - - - - - Parks and Recreation - 41,529 - - - - - - 26,624 - - Public Works 1,199,529 - - - - - - - - - - Debt Service: Interest - - - 194,167 - - - 217,013 - - - Principal - - - 742,136 - - - 1,080,832 - - - TOTAL EXPENDITURES 1,199,529$ 3,650,768$ 492,379$ 2,118,770$ 1,749$ 3,170$ 78,410$ 1,604,879$ 1,176,763$ 139,330$ 190,449$ REVENUES OVER (UNDER) EXPENDITURES (1,160,134)$ (1,872,681)$ 14,232$ 1,682,847$ 34,419$ 29,095$ 146,886$ (1,478,865)$ 1,658,072$ 145,085$ 2,152,590$ OTHER FINANCING SOURCES (USES): Asset Disposition -$ 165$ -$ -$ -$ -$ -$ 11,900$ -$ -$ -$ Capital Contributions - - - - - - - - - - - Transfers In - 1,526,893 - - - - - 3,284,561 2,624 193,122 - Transfers Out - (28,943) - - - - (21,000) (1,633,280) (593,122) - (1,543,393) TOTAL OTHER FINANCING SOURCES (USES)-$ 1,498,115$ -$ -$ -$ -$ (21,000)$ 1,663,181$ (590,498)$ 193,122$ (1,543,393)$ TOTAL REVENUES OVER (UNDER) EXPENDITURES (1,160,134)$ (374,566)$ 14,232$ 1,682,847$ 34,419$ 29,095$ 125,886$ 184,316$ 1,067,574$ 338,207$ 609,197$ FUND BALANCE, July 1, 2024 1,438,711 848,942 455,013 5,569,234 182,216 83,457 770,716 993,064 6,344,560 946,950 1,879,885 FUND BALANCE, June 30, 2025 278,577$ 474,376$ 469,245$ 7,252,081$ 216,635$ 112,552$ 896,602$ 1,177,380$ 7,412,134$ 1,285,157$ 2,489,082$ CITY OF CAPE GIRARDEAU, MISSOURI COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2025 See Independent Auditors' Report. 80 Capital Capital Improvement Improvement Park/Stormwater Park Sales Tax -Sales Tax -Stormwater Parks/System System Total Transportation Transportation Sewer System General Sales Tax - Stormwater Improvements Improvements Nonmajor Sales Tax Sales Tax Improvements Improvements Capital Fire Sales Sales Tax Phase II Phase II Governmental Trust Fund V Trust Fund VI Fund Fund Fund Tax Fund Fund Fund Fund Funds REVENUES: Taxes -$ 6,596,071$ 3,389,743$ 3,389,743$ 5,084,617$ 3,298,034$ 1,694,872$ -$ -$ 30,106,304$ Intergovernmental 223,991 81,767 - - - - - 443,271 28,218 3,146,699 Charges for Services - - - - - - - - - 1,867,634 Special Assessment - - - - - - - - - 4,449 Miscellaneous - - - - - - - - - 187,053 Investment Revenue 430,983 687,376 329,691 340,975 140,682 - 3,308 35,050 47,558 2,941,553 TOTAL REVENUES 654,974$ 7,365,214$ 3,719,434$ 3,730,718$ 5,225,299$ 3,298,034$ 1,698,180$ 478,321$ 75,776$ 38,253,692$ EXPENDITURES: Current: Administrative Services -$ -$ -$ -$ -$ -$ -$ -$ -$ 111,120$ Development Services - 48,553 81,385 81,416 - - - - - 1,947,368 Parks and Recreation - - - - - - - - - 3,710,248 Public Safety - - - - - - - - - 663,565 Public Works - - - - - - - - - 190,449 Capital Outlay: Public Safety - - - - - - - - - 514,964 Administrative - - - - - - - - - 40,085 Development Services - - 98,861 - - - - - - 286,782 Capital Improvements - - - - - - - - - - Parks and Recreation - - - - 354,211 - - - 700,231 1,122,595 Public Works 1,089,043 4,191,122 - 2,446,597 - - - 1,222,830 - 10,149,121 Debt Service: Interest - - - 355,210 297,928 - - - - 1,064,318 Principal - - - 1,190,000 - - - - - 3,012,968 TOTAL EXPENDITURES 1,089,043$ 4,239,675$ 180,246$ 4,073,223$ 652,139$ -$ -$ 1,222,830$ 700,231$ 22,813,583$ REVENUES OVER (UNDER) EXPENDITURES (434,069)$ 3,125,539$ 3,539,188$ (342,505)$ 4,573,160$ 3,298,034$ 1,698,180$ (744,509)$ (624,455)$ 15,440,109$ OTHER FINANCING SOURCES (USES): Asset Disposition -$ -$ -$ -$ 14,200$ -$ -$ -$ -$ 26,265$ Capital Contributions - - - - - - - - 316,146 316,146 Transfers In - - - 400,000 208 - - 151,501 1,641,259 7,200,168 Transfers Out - - (3,068,126) (1,437,840) (3,472,390) (3,284,561) (1,688,629) - - (16,771,284) TOTAL OTHER FINANCING SOURCES (USES)-$ -$ (3,068,126)$ (1,037,840)$ (3,457,982)$ (3,284,561)$ (1,688,629)$ 151,501$ 1,957,405$ (9,228,705)$ TOTAL REVENUES OVER (UNDER) EXPENDITURES (434,069)$ 3,125,539$ 471,062$ (1,380,345)$ 1,115,178$ 13,473$ 9,551$ (593,008)$ 1,332,950$ 6,211,404$ FUND BALANCE, July 1, 2024 9,471,677 13,114,973 5,482,169 6,504,096 3,113,971 278,265 212,457 979,536 (302,890) 58,367,002 FUND BALANCE, June 30, 2025 9,037,608$ 16,240,512$ 5,953,231$ 5,123,751$ 4,229,149$ 291,738$ 222,008$ 386,528$ 1,030,060$ 64,578,406$ CITY OF CAPE GIRARDEAU, MISSOURI COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2025 See Independent Auditors' Report. 81 ANNUAL FEDERAL FINANCIAL COMPLIANCE SECTION 82 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Cape Girardeau, Missouri’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City of Cape Girardeau, Missouri’s major federal program for the year ended June 30, 2025. The City of Cape Girardeau, Missouri’s major federal program is identified in the summary of auditors’ results section of the accompanying Schedule of Findings and Questioned Costs. In our opinion, the City of Cape Girardeau, Missouri complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2025. 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. 83 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 the major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City of Cape Girardeau, Missouri’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City of Cape Girardeau, Missouri’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City of Cape Girardeau, Missouri’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 84 Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit, we did not identify any deficiencies in internal control over compliance that we consider to be a material weakness, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. BEUSSINK, HEY, ROE & STRODER, L.L.C. Cape Girardeau, Missouri January 29, 2026 85 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, 2025, 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 t hereon dated January 29, 2026. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Cape Girardeau, Missouri’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Cape Girardeau, Missouri’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Cape Girardeau, Missouri’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 86 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Cape Girardeau, Missouri’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. BEUSSINK, HEY, ROE & STRODER, L.L.C. Cape Girardeau, Missouri January 29, 2026 Federal Passed Assistance Listing Program Through to Federal Grantor/Pass-Through Grantor Program Title Number Number Subrecipients U.S. DEPARTMENT OF DEFENSE: Loan of DOD Property (non-cash)12.UNKNOWN N/A -$ 100,000$ TOTAL U.S. DEPARTMENT OF DEFENSE 100,000$ U.S. DEPARTMENT OF JUSTICE: Bulletproof Vest Partnership Program 16.607 BUBX15079622 -$ 18,614$ Public Safety Partnership and Community Policing Grants 16.710 15JCOPS-22-GG-03500-UHPX - 3,859 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-23-GG-03542-JAGX - 18,317 TOTAL U.S. DEPARTMENT OF JUSTICE 40,790$ U.S. DEPARTMENT OF TRANSPORTATION: Passed Through Missouri Department of 20.106 19-077A-1 -$ 1,741$ Transportation - COVID-19 - Airport 3-29-0013-015-2022 - 65,568 Improvement Program, Infrastructure Investment 3-29-0013-017-2023 - 557,444 and Jobs Act Programs, and COVID-19 3-29-0013-019-2024 459,629 Airport Programs 3-29-0013-020-2024 - 226,665 1,311,047$ Passed Through Missouri Department of 20.205 MO-81-013 -$ 231,344$ Transportation - Highway Planning and Construction J9P3862/FAF-74-1(21)- 223,991 TAP-1501(020)- 14,746 TAP-1501(021)- 37,691 TAP-1501(022)- 29,330 TAP-1501(023)- 28,218 24-1009-1437-40506 - 21,190 586,510 Highway Safety Cluster: Passed Through Missouri Department of 20.600 25-PT-02-088 -$ 5,313$ Transportation - State and Community Highway Safety 24-PT-02-094 - 6,168 24-CP-09-013 - 156,068 25-CP-09-008 - 128,518 24-EM-02-002 - 3,000 Total Highway Safety Cluster 299,067 Passed Through Missouri Department of 20.607 25-ENF-03-086 -$ 4,838$ Transportation - Alcohol Open Container Requirements 24-154-AL-091 - 1,968 6,806 Safe Streets and Roads for All 20.939 693JJ32340182 - 63,365 TOTAL U.S. DEPARTMENT OF TRANSPORTATION 2,266,795$ City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2025 Disbursements 87 Federal Passed Assistance Listing Program Through to Federal Grantor/Pass-Through Grantor Program Title Number Number Subrecipients U.S. DEPARTMENT OF THE TREASURY: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (1)21.027 N/A -$ 530,544$ Passed Through Missouri Department of Natural Resources - COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (1)21.027 73134579 - 443,271 Passed Through Missouri Department Public Safety - COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (1)21.027 SLFRP4542-EMSPG016 - 6,532 980,347 TOTAL U.S. DEPARTMENT OF THE TREASURY 980,347$ U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES: Passed Through the Missouri Department of Health Management Agencyand Human Services - Epidemiology and Laboratory Capacity for Infectious Diseases 93.323 KQ220051176 -$ 4,400$ Passed Through the National Recreation and Park Association, Inc. Assistance Programs for Chronic Disease Prevention and Control 93.945 NU58DP006985-01-00 - 978 TOTAL U.S. DEPARTMENT HEALTH AND HUMAN SERVICES 5,378$ City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2025 Disbursements 88 Federal Passed Assistance Listing Program Through to Federal Grantor/Pass-Through Grantor Program Title Number Number Subrecipients U.S. DEPARTMENT OF HOMELAND SECURITY: Passed Through the Missouri Department of Public 97.042 EMK-2024-EP-0004-SL05 -$ 8,763$ Management AgencySafety - Emergency Management Performance Grants EMK-2024-EP-05000-017 - 12,712 21,475 Assistance to Firefighters Grant 97.044 EMW-2021-FG-00303 -$ 3,510$ EMW-2022-FG-02231 - 5,850 EMW-2021-FG-09803 - 45,502 EMW-2023-FG-08212 - 75,664 130,526 Passed Through Southeast Missouri Regional Planning 97.067 EMW-2023-SS-00085-05-04 -$ 7,498$ and Economic Development Comission EMW-2023-SS-00085-05-04 - 3,640 EMW-2023-SS-00085-05-06 - 21,801 EMW-2022-SS-00094-05-03 - 5,086 38,025 TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY 190,026$ TOTAL FEDERAL AWARDS 3,583,336$ (1) Identified major program. City of Cape Girardeau, Missouri SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2025 Disbursements 89 90 City of Cape Girardeau, Missouri NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2025 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, 2025. 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 as “…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. 91 City of Cape Girardeau, Missouri SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2025 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 21.027 Covid-19 – Coronavirus State and Local Fiscal Recovery Funds 92 Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee: X yes no 2. FINANCIAL STATEMENT FINDINGS: No findings or questioned costs were noted that are required to be reported. 3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: No findings or questioned costs were noted that are required to be reported. 93 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS For the Year Ended June 30, 2025 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.