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Home My WebLink About1994-06.Auditors'ReportI COMPREHENSIVE ANNUAL FINANCIAL REPORT I of the City of Cape Girardeau, Missouri ' For the Fiscal Year Ended June 30, 1994 Prepared by ' Finance Department CITY OF CAPE GIRARDEAU, MISSOURI COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 1994 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal .............................................iii-xiii Organizational Chart ............................................... xv List of Principal Officials ........................................... xvi FINANCIAL SECTION Independent Auditors' Report on the General Purpose Financial Statements and Supplementary Information ....................... 5-6 General Purpose Financial Statements: Combined Balance Sheet -All Fund Types and Account Groups............................................9-10 Combined Statement of Revenues, Expenditures and Changes in Fund Balance -All Governmental Fund Types.......................................................11 Combined Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Budget Basis) -General and Special Revenue Fund Types ..........................12 Combined Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Budget Basis) -Debt Service and Capital Projects Fund Types .......................13 Combined Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types .14 Combined Statement of Cash Flows -All Proprietary Fund Types.......................................................15 Notes to the Financial Statements ................. • • 19-56 Combining, Individual Fund and Account Group Statements and Schedules: General Fund: Comparative Balance Sheet ....................................... b 1 Schedule of Revenues and Expenditures -Budget and Actual (Budget Basis) ............................................... 62 Special Revenue Fund: Combining Balance Sheet ........................................ b5 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 66 Page Schedules of Revenues and Expenditures -Budget and Actual (Budget Basis) Convention/Tourism..........................................67 Airport....................................................68 Downtown Business District ..................................... 69 Parks and Recreation ......................................... 70 Health...................................................71 Motor Fuel Tax .............................................. 72 Capital Improvement Sales Tax ................................... 73 Flood Protection ............................................. 74 Vision 2000 ................................................75 Debt Service Fund: Comparative Balance Sheet ........................................ 79 Capital Projects Funds: Combining Balance Sheet ......................................... 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balance .............................................. 84 Schedules of Revenues and Expenditures -Budget and Actual (Budget Basis) General Capital Improvement ................................... 85; Corp Flood Control ........................................... 86 Street Improvements .......................................... 87 FAU Street Grants ............................................ 88 Community Development Block Grant .............................. 89 Park Improvements ........................................... 90 Enterprise Funds: Combining Balance Sheet _......................................... 93 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ........................................... 94 Combining Statement of Cash Flows .................................. 95 Schedules of Revenues and Expenses -Budget and Actual (Budget Basis) Sewer....................................................96 Water.....................................................97 Solid Waste................................................98 GolfCourse................................................99 Internal Service Funds: ` Combining Balance Sheet ........................................ 103 Combining Statement of Revenues, Expenses and Changes in Retained Earnings .......................................... 104 Combining Statement of Cash Flows ..................................105 Page Schedules of Revenues and Expenses -Budget and Actual (Budget Basis) Data Processing ............................................ 106 Fleet Management ........................................... 107 Employees' Fringe Benefit ..................................... 108 Agency Funds: Combining Balance Sheet ........................................ 111 Statement of Changes in Assets and Liabilities Library....................................................112 Arena Improvement ........................................... 113 Deferred Compensation ........................................ 114 Park Development Foundation .................................... 115 General Fixed Asset Account Group: Schedule of General Fixed Assets by Source .119 Schedule of General Fixed Assets -By Function and Activity .................120 Schedule of Changes in General Fixed Assets -By Function and Activity 121 General Long-term Debt: Schedule of Changes in Long-term Debt ........... ..................125 Statement of General Long-term Debt .126 STATISTICAL SECTION - Unaudited General Governmental Expenditures by Function -Table 1 .....................129 General Governmental Revenues by Source -Table 2 ........................130 General Governmental Tax Revenues by Source -Table 2A ....................131 Ratio of Unreserved Fund Balance to Annual General Fund Expenditures -Table 3 ............................................ 132 Property Tax Levies and Collections -Table 4 ..........::::::: ..... .133 :::::: Assessed and Estimated Actual Value of Property -Table 5 .134 Property Tax Rates -Direct and Overlapping Governments -Table 6 ............... 135 Principal Taxpayers -Table 7 .................................... 136 Computation of Legal Debt Margin -Table 8 ............................. .137 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt per Capita -Table 9 .............................................. 138 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures -Table 10 ............................................ 139 Computation of Direct and Overlapping Bonded Debt -General Obligation Bonds -Table 11 ........................................ 140 Revenue Bond Coverage -Sewer Fund -Table 12 ............................141 Revenue Bond Coverage -Water Fund -Table 13 ............................142 Demographic Statistics -Table 14 ......................................143 Property Value and Construction -Table 15 ...............................144 Miscellaneous Statistics -Table 16 ......................................145 Ri u Pa -e SINGLE AUDIT SECTION Independent Auditors' Report on Schedule of Federal Financial Assistance .............................................. 149 Schedule of Federal Financial Assistance ............................. 150-151 Independent Auditors' Report on Internal Control Structure Related Matters Noted in a Financial Statement Audit Conducted in Accordance with Government Auditing Standards ............................... 152-154 Independent Auditors' Report on Compliance with Laws and Regulations Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................155 Independent Auditors' Report on the Internal Control Structure used in Administering Federal Financial Assistance Programs .................. 156-159 Independent Auditors' Report on Compliance with the General Requirements Applicable to Major and Nonmajor Federal Financial Assistance Programs ....................................... 160 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs ...................................................161-162 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions ............................................. 163 Ri u INTRODUCTORY SECTION THIS PAGE INTENTIONALLY LEFr BLANK. L ". .x • a,w:i '.tom s!y FINANCE DIRECTOR October 19, 1994 December 19, 1994 Honorable Mayor, City Council and Citizens City of Cape Girardeau, Missouri CITY HALL P.O. BOX 617 CAPE GIRARDEAU, MO 63702-0617 The comprehensive annual financial report of the City of Cape Girardeau for the year ended June 30, 1994, is hereby submitted for your review as mandated by the City Charter. The general purpose financial statements included in this report were audited by the independent certified public accounting firm of Begley, Janssen, Young & Birk. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with management of the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner that presents fairly the financial position and results of operations of the various funds, account groups, and component units of the City of Cape Girardeau. All disclosures necessary to enable the reader to gain an understanding of the City of Cape Girardeau's activities have been included. The comprehensive annual financial report is presented in four sections: introductory, financial, statistical, and single audit. The introductory section, which is unaudited, includes this letter of transmittal, an organizational chart, and a list of the City of Cape Girardeau's principal elected and appointed officials. The financial section includes the independent auditors' report, the general purpose financial statements, and the combining, individual fund and account group statements and schedules. The statistical section, which is unaudited, is designed to provide a broader understanding of the City by providing ten year trend data and nonfinancial information useful in assessing the City's financial affairs. The City of Cape Girardeau is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget's Circular A-128, "Audits of State and Local Governments." Information related to this single audit, including a schedule of federal financial assistance and the independent auditors' reports on internal controls and compliance with applicable laws and regulations are included in the single audit section of this report. This report includes all the funds and account groups of the City of Cape Girardeau, as well as all of its component units. Component units are legally separate entities for which the elected officials of the City are financially accountable. The activities of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA) are blended with the financial presentation of the City. The CGPFA is used to execute the bond indentures for the purpose of issuing and securing bonds. The City of Cape Girardeau provides a full range of services including police and fire protection, sanitation services, the construction and maintenance of streets, regional airport operation, and various park and recreation activities and cultural events. "HOME OF MISSOURI STATE FLAG" iii Economic Condition and Outlook The City of Cape Girardeau is the largest regional hub of population and economic activity between St. Louis, Missouri and Memphis, Tennessee. The population within the City's 40 -mile trade area is over 300,000 with a work force of over 140,000. Cape Girardeau County's population has grown from 49,350 in 1970 to 61,633 in 1990 and is currently estimated at 64,356. The City itself has a current estimated population of 35,500 and the immediate urban area 50,900. The City's regional status is best illustrated by its diverse economy that has had continued growth for many years. The City had retail sales exceeding $537,000,000 in 1993, with 1994 sales anticipated to be in the vicinity of $598,000,000. Major retail establishments that contribute significantly to the City's economy are: Wal-Mart, K -Mart, Lowe's, Venture, Sears, JCPenny, and Famous -Barr, with a new Target store currently under construction. The Cape area has 17 manufacturing firms employing over 100 persons, with the largest, Lee -Rowan and Proctor and Gamble employing 1,200 and 1,104, respectively. The area also has 14 nonmanufacturing firms and institutions employing over 100 persons, with the largest being Southeast Missouri Hospital with over 1,400 employees and St. Francis Medical Center with over 1,300 employees. These two major regional medical facilities are augmented by the Cape Girardeau Doctors' Park office and health care complex. Combined, these three facilities are served by some 150 doctors. The City's regional status is also enhanced by Southeast Missouri State University with an enrollment of 7,673 and an employment of nearly 1,000. The campus also includes the joint City -University owned and operated Show -Me Center, with a total seating capacity of over 7,000. The University recently broke ground for a new building to house the College of Business that is estimated to cost approximately $12,000,000. The robustness of the City's economy is further illustrated by growth statistics compiled from building permit records. For the five year period 1988 through 1992, the City averaged $30,256,156 per year in declared construction costs. In 1993, this total reached $33,200,588 and 1994 totals will exceed this amount by some $5,000,000. With all of this business and construction activity, the County's unemployment rate has been consistently below state and federal averages for a number of years. The City also owns and operated the Cape Girardeau Regional Airport, the largest such facility between St. Louis and Memphis, with regularly scheduled commuter airline service and full instrument landing facilities. The City also supports the bi-county Southeast Missouri Regional Port Authority, with its facility straddling the Cape -Scott County line. The City and County were also the leading entities in the recent formation of the Cape Girardeau Area Industrial Recruitment Association. A major force in supporting economic development and City activities is the Cape i Girardeau Chamber of Commerce. With over 1,100 members, it is the largest non -metro] organization of this type in the State of Missouri. Among a myriad of activities, the Chamber has provided key support for the Vision 2000 strategic planning efforts. Begun in 1987 with 64 citizens and 18 town hall meetings, the Vision 2000 plan identified nine broad goals and 24 iv d objectives to be accomplished b the community. The implementation of this program is � p Y currently overseen by the 14 -member Community Relations Council. As a result of the diverseness of the area's economy, the City's pivotal geographic location and its history, there is every reason to believe that the community's economy will continue to grow in the future. In the past, these attributes have also acted to "shield" the area from national recessive trends that have had major impacts on other surrounding areas. A marked example of this growth trend is the City's Five -Year Capital Improvements Program, which itself envisions over $59,000,000 in capital investment in the City's infrastructure through the year 1999. Major Initiatives Current. In recent years, the City has completed 20 -year master plans for the development of its water system, sewer system, and regional airport. On June 3, 1992, the City purchased the water system from Union Electric Company through the passage of an $11,840,000 revenue bond issued by a 77% margin. As envisioned in the master plan, the City this year will initiate over $1,500,000 in improvements to this system. In April 1994, the citizens also approved by a 70% margin the extension of the City's 1/4% sales tax for capital improvements and authorized the issuance of $25,000,000 in revenue bonds for major improvements to the existing sewer system, including separation of the City's combined sewers. The 1/4% sales tax was initially adopted in 1988 to provide funding for the City's share of a $40,000,000 flood control project on Cape LaCroix Creek and Walker Branch. The first phase of this project is nearing completion and Phase H was initiated this year. This year the City also completed a $1,000,000 complete renovation of the airport terminal building. Future. It is anticipated that the City will continue to commit capital improvement funding at an average of some $10 to $20 million per year for the next five to ten years, both in terms of upgrading existing infrastructure and responding to demands from new growth and development. In addition to major street projects, this funding will be directed at implementing the provisions of the 20 -year master plans described above. Of major significance is a project of the State Highway Department to build a new Mississippi River Bridge and a four -lane, divided highway connection to Interstate 55. Obviously, the City is, and will be, intricately involved with this $86 million project. Also, the City is entering the final design phase for a new multi -use recreational/social event building and softball/soccer complex with total costs of approximately $4,000,000. These facilities will have a major regional impact and are expected to have a significant impact on the area's economy, especially in view of the City's recent assumption of the operation of the Convention and Tourism Bureau. Finally, in 1994, the citizens of Cape Girardeau approved riverboat gaming and the Boyd Group from Las Vegas, Nevada was approved as the City's developer. This project is entering the final design phase of an estimated $56 million development that, again, will have a major regional impact and a major impact on the City's economy. Department Focus. For the fiscal year ended June 30, 1994, the Fire Department has been selected for its efforts and accomplishments. The Cape Girardeau Fire Department employs 56 uniformed and two civilian personnel, supported by a fiscal 1994 budget of $2.5 million. During 1994, the department responded to over 2,000 emergency calls while providing protection V for the residents of the City and surrounding areas. The department's mission involves providing emergency, nonemergency, and life safety services for the residents of the City. To provide these services, the department is organized into five administrative divisions: operations, emergency medical services, special services, asset management, and life safety. Emergency services including fire suppression, emergency medical services, hazardous materials mitigation, heavy rescue extrication, and other related special services are provided by the Operations and Emergency Medical Services Divisions. The Life Safety Division provides fire code enforcement, public fire education, safety and fire cause determination services. Asset Management insures that all facilities and vehicles are properly maintained, while the Special Services Division is responsible for employee training and City-wide emergency planning. During 1993, the Fire Department embarked upon a "Medical First Responder Program" as a way to improve services to citizens at minimum cost. The program involved training department employees for medical response and developing appropriate response procedures in concert with hospital and regional medical authorities. One result of this program was an overall reduction in response times for medical emergencies in the City from 10 minutes per incident to less than 4 minutes, at a budgetary cost of under $10,000 per year. Future plans call for the addition of advanced life support (paramedic) services during 1995 through a "Paramedic Engine" concept. Financial Information Management of the City of Cape Girardeau is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgements by management. As a recipient of federal, state, and local financial assistance, the City of Cape Girardeau is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by management and the internal audit staff. Single Audit. As part of the City of Cape Girardeau's single audit described earlier, tests were made of the City's internal control structure and of its compliance with applicable laws and regulations, including those related to federal financial assistance programs. Although this testing was not sufficient to support an opinion on the City's internal control system used in administering federal financial assistance programs or its compliance with laws and regulations related to nonmajor federal financial assistance programs, the audit for the year ended June 30, 1994 disclosed no material internal control weaknesses or material violations of laws and regulations. vi d Budgetary Controls. The City of Cape Girardeau maintains budgetary controls as described in the City Charter. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General, Special Revenue, Debt Service, Capital Projects, Enterprise, and Internal Service Funds (with the exception of the risk management internal service fund) are included in the annual budget appropriations. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is by department level of administrative services, development services, parks and recreation, public safety, and public works. The City also maintains an encumbrance accounting system as one method of maintaining budgetary control. Budget appropriations expire at the end of the year, however, outstanding encumbrances at the end of the year are honored by the City. As demonstrated by the statements and schedules included in the financial section of the report, the City of Cape Girardeau continues to meet its responsibility for sound financial management. General Government Functions. The following schedule presents a summary of general, special revenue, and debt service fund revenue and operating transfers in for the years ended June 30, 1994 and 1993. Amount of Percent of Revenues and 1994 Percent of 1993 Increase Increase Transfers Amount Total Amount (Decrease) Decrease Taxes $ 11,594,887 54.4% $ 10,861,889 $ 732,998 6.7% Licenses and permits 741,703 3.5% 692,933 48,770 7.0% Intergovernmental 1,709,722 8.0% 1,181,328 528,394 44.7% Charges for services 557,611 2.6% 498,841 58,770 11.8% Interdepartmental 461,434 2.2% 321,811 139,623 43.4% Fines and forfeitures 577,296- 2.7% 568,864 8,432 1.5% Miscellaneous 244,699 1.1% 95,152 149,547 157.2% Interest 765,179 3.6% 556,385 208,794 37.5% Operating transfers in 4,676,572 21.9% 2,537,989 2,138,583 84.3% TOTAL $ 21,329,103 100.0% $ 17,315,192 $ 4,013,911 The largest dollar value increase in revenues came from operating transfers in. The major components of this increase are as follows: A transfer from the street improvement capital project fund of $1,255,548 was received by the general fund this year which had not been made in previous years to cover a transfer made by the general fund to employee's fringe benefit fund which was used by that fund to replace funds refunded by the Missouri Local Government Employee Retirement System to the employees of the City. IA transfer of $172,500 was received by the airport special revenue fund. This fund had been reported as an enterprise fund in previous years. The operating transfer received by the parks and recreation special revenue fund from the general fund increased. $175,000 this year. The previous year the parks and recreation fund ® operated at $132,277 deficit. fel vii The debt service fund received $390,920 additional transfer from the convention/tourism special revenue fund this year to cover the debt service costs on a $3,795,000 Certificates of Participation that had been issued in April of the previous year to build a multi -use recreational/social event building and softball/soccer complex. The majority of the increase in tax revenue was due to a 9% or $472,558 increase in the 1 % general sales tax. Total general sales tax collected this year was $5,709,108 which represents 48.5% of total general fund revenues before transfers. Previous year general sales tax collected was $5,236,551 which represented 49.3% of that year's general fund revenues before transfers. The 1/4% capital improvement sales tax also increased 9% or $119,552. This tax is used to pay debt service on leasehold revenue bonds issued to fund the City's share of the Army Corp of Engineers Flood Control Project. Real estate and personal property tax increased this year 10.2% or $117,866. The levy tax associated with general, special revenue, and debt service funds was increased to $0.47 from $0.45 the previous year. Total assessed valuation increased 4.3% over the previous year after allowing for the removal of $4,446,410 of assessed valuation associated with water system assets purchased by the city. The water fund continued to make payment in lieu of taxes on these assets. There were two major reasons for the increase in intergovernmental revenue. The first is $317,027 of state and federal reimbursements to cover costs associated with the 1993 Mississippi River Flood. The second is a $167,269 grant received for the operation of the City control tower at the regional airport. The airport fund had previously been included in the enterprise funds. The reason interdepartmental revenue increased was that this year the City began charging administrative costs to the water fund. Previously, these costs had been absorbed by the City's general fund. The major components of the increase in miscellaneous revenue were airport rental fees of $95,567 that were received into an enterprise fund in previous years, $41,293 in additional donations, and a $20,000 refund of amounts advanced to the Chamber of Commerce for operating cash for the Chamber to provide services under a contract with the City to promote tourism. This year the City began providing these services and the operating cash was refunded. A major portion of the increase of interest earnings relates to additional earnings of $115,713 on an escrow account established by an April 1993 G.O. Refunding Bond that was used to refund G.O. debt on November 1, 1994. The rest of the increase relates to an increase in interest rates and a longer average maturity of funds invested. The following schedule presents a summary of general, special revenue, and debt service funds expenditures and operating transfers out for the years ended June 30, 1994 and 1993. Effective July 1, 1993 all full time employees of the City were given a $1,000 per year pay increase and a new dental plan compared to no pay and benefit increases in the previous year. The number of full time and fte (full-time equivalent) employees increased by 21 and 27 respectively from prior year's levels of 231 and 265 respectively. Included in these increases are 8 full time and 10 fte employees of the convention tourism and airport funds. In the prior year the convention tourism fund's functions were performed under a contract for service and the airport operations were reported as an enterprise fund. Public safety added 8 full time and 8.5 fte positions out of the remaining 13 �ise since full time ll time employees 17 fte positions. we a added at variouh new position s id times not necessarily equate to a full years expense throughout the year. The increase in the parks and recreation expenditures was mainly the result of the addition of 3.25 fte employees, the offering of more programs, and increased utility expense of $18,700 as a result of the pool facilities being closed for three months of the previous year's winter for installation of a seasonal pool cover. The increase in public works expenditures was the result of $436,843 of airport expenditures that in prior years were reported in the enterprise funds. The increase in contingency expenditures was the result of $163,678 paid for supplies and contractual services relating to the 1993 Mississippi River Flood and $21,400 of expenditures relating to the selection of a company to build a riverboat casino in the City. The increase in principal and interest reflect the issuances of Certificates of Participation in April 1993 to build a multi -use recreational/social event building and softball/soccer complex, General Obligation Refunding Bonds in April 1993 that will be used to call the 1987 General Obligation Refunding Bonds on November 1, 1994, and Leasehold Revenue Bonds in September ® 1993 that will be used for new street construction and defeasance of Leasehold Revenue Bonds f� issued in previous years. ix Amount of Percent of Expenditures and 1994 Percent of 1993 Increase Decrease Increase Decrease Transfers Amount Total Amount Current: Administrative services $ 1,152,806 0 5.3% $ 1, 105,099 1,303,744 $ 47,707 47,991 4.3% 3.7% Development services 1,351,301 1,477,529 6.3% 0 6.8% 1,334,538 142,991 10.7% Parks and recreation 6,117,359 28.3% 5,825,410 291,949 5.% Public safety Public works 1,905,064 8.8% 1,467,013 438,051 29.99% 1032.29o* 232,876 1.1% 20,569 212,307 Contingency Debt service: 1,871, 485 8.7% 1,289,337 582,148 45.2 0 Principal Interest and fiscal charges 1,927,973 80 .9% 1,447,236 480,737 2 632.018 33.2% 89.6% Operating transfers out 55 5- $ 21 605,708 5.8 2 o 100.0 0 2,937 ,297 $ 16 730,243 4 5465 $._8_7 TOTAL *Includes 1993 Mississippi River Flood related expenditures. Effective July 1, 1993 all full time employees of the City were given a $1,000 per year pay increase and a new dental plan compared to no pay and benefit increases in the previous year. The number of full time and fte (full-time equivalent) employees increased by 21 and 27 respectively from prior year's levels of 231 and 265 respectively. Included in these increases are 8 full time and 10 fte employees of the convention tourism and airport funds. In the prior year the convention tourism fund's functions were performed under a contract for service and the airport operations were reported as an enterprise fund. Public safety added 8 full time and 8.5 fte positions out of the remaining 13 �ise since full time ll time employees 17 fte positions. we a added at variouh new position s id times not necessarily equate to a full years expense throughout the year. The increase in the parks and recreation expenditures was mainly the result of the addition of 3.25 fte employees, the offering of more programs, and increased utility expense of $18,700 as a result of the pool facilities being closed for three months of the previous year's winter for installation of a seasonal pool cover. The increase in public works expenditures was the result of $436,843 of airport expenditures that in prior years were reported in the enterprise funds. The increase in contingency expenditures was the result of $163,678 paid for supplies and contractual services relating to the 1993 Mississippi River Flood and $21,400 of expenditures relating to the selection of a company to build a riverboat casino in the City. The increase in principal and interest reflect the issuances of Certificates of Participation in April 1993 to build a multi -use recreational/social event building and softball/soccer complex, General Obligation Refunding Bonds in April 1993 that will be used to call the 1987 General Obligation Refunding Bonds on November 1, 1994, and Leasehold Revenue Bonds in September ® 1993 that will be used for new street construction and defeasance of Leasehold Revenue Bonds f� issued in previous years. ix The increase in operating transfers out was due primarily from the transfer of $1,255,548 to the employee's fringe benefit fund used to reimburse the Missouri Local Government Employee Retirement System for a refund to City employee's for previous employee paid contributions to the system, transfers of $820,000 to capital project funds for street, multi -use recreational/social event building, and softball/soccer complex, and increased transfers of $624,000 to the debt service fund to cover part of the additional debt service this year. General Fund Balance. Total fund balance increased $850,585 this year of which $715,674 was an increase in unrestricted fund balance. Unrestricted fund balance at the end of this year was $2,706,048 or approximately 2.55 months of the 1994-1995 budgeted general fund operating expenditures and operating transfers out. This compares favorably to the previous year's unrestricted fund balance of $1,990,374 which was approximately 1.98% of the original 1993 - 1994 budgeted general fund operating expenditures and operating transfers out. Enterprise Operations. The enterprise operations of the City are comprised of the wastewater treatment and collection system, water treatment and distribution system, residential and commercial solid waste collection which includes transfer station operations, and municipal golf course. Rates for all enterprise operations remained the same as the previous year except for sewer rates which were adjusted to produce a five percent revenue gain and the transfer station tipping fees which were increased to $30 per ton from $25 per ton. The sewer fund operated at a $341,595 profit this year compared to a $122,366 profit the previous year. Operating revenue increased $238,009 over the previous year resulting from a previous year billing error that amounted to approximately $90,000 in previous year's revenue being billed and recognized this year, increased rates, and the rate change calculation for this year being made before the billing error was discovered. This year's rate was able to be carried forward to support next year's budgeted expenses. Operating expenses net of grant reimbursement for flood related expenses increased $67,523 or 4.2% over prior year's expenses. The interest related costs decreased $70,435 over the previous year due to principal repayment and the refunding of all sewer related debt in September 1993. The water fund operated at a $29,430 profit this year compared to a $220,127 profit the previous year. Operating revenue increased $107,810 or 3.2% over the previous year reflecting small growth and the results of a meter replacement program. Operating expenses increased $329,992 or 13.1% over prior year's expenses. This resulted from the amount paid to Alliance Water Resources for the day-to-day operations of our system increasing by $223,807 or 15.2% over the prior year's payments and $180,000 paid this year that had not been paid in previous years for administrative costs that previously had been absorbed by the general fund. The increase payment to Alliance was the result of increased emphasis on the maintenance and upgrading of the City water system. Additionally, payments made in lieu of property taxes decreased $71,038 this year as a result of a planned phase out of this expense over a 5 year period from the date of the water system purchase. The solid waste fund operated at a $71,568 profit this year compared to a loss of $5,037 the previous year. Operating revenue increased by $116,632 or 5.4% over the previous year resulting mainly from a $115,066 increase in revenues generated at the transfer station. This increase was the result of a 20% tipping fee increase and a 8.9% growth in the volume of solid waste received from private haulers and surrounding communities. -Operating -expenses increased X $67,278 or 3.2% from the previous year. All divisions of the solid waste fund except the transfer station experienced reduced costs this year compared to the previous year. The transfer station experienced an increased cost of $135,276 or 18.1 % over the previous year which reflected a December 15, 1994 13.1 % rate increase by the company that hauls and disposes the transfer station trash at a landfill approximately 40 miles from the City and an increase in the volume of trash handled by the transfer station. The hauling and disposal contract entered into by the City in December was a five year contract with guaranteed prices that increase over the next five 1 years. The fifth year rate in this contract will only be 7.75% higher than the first year rate. The i� paydown and refunding of solid waste debt this year resulted in reduce interest and handling costs of $17,111. The fund also had additional revenue of $19,110 from the sale of assets and securities this year. The golf course fund operated at a $50,623 profit this year compared to a loss of $18,221 the previous year. This improvement was the result of a $70,964 or 19.9% increase in revenues over the previous year and the ability to keep expenses in line with the previous year. The increased revenue was the result of increased play due to the improved condition of the course after many years of work on the course and a more concerted effort by the course staff and board to promote the course. Pension Trust Fund Operations. The City contributes to the Missouri Local Government Employees Retirement System, an agent multiple -employer public employee system that acts as a common investment and administrative agent for local government entities in Missouri. This system was created and is governed by state statute. At February 28, 1994, the most recent actuarial valuation date, the City's assets in excess of the Pension Benefit Obligation was $58,212. This compares favorably to an excess of $41,174 at the prior valuation date of February 28, 1993. During this year the City Council chose to have the retirement system refund employee contributions that were made to the plan before the City assumed full responsibility of making contributions necessary to fund the plan. The City was required by the plan to contribute an additional $1,124,000 over it's normal contributions to replace the funds that were distributed to the employees this year. Debt Administration. At the end of the year, the City of Cape Girardeau had a number of debt issues outstanding. These issues, net of applicable discounts, included $10,985,000 of general obligation bonds, $16,013,330 of revenue bonds, $17,255,568 of leasehold revenue bonds, and $3,545,000 certificates of participation. This compares to 11,175,000, $15,400,521, $15,481,292, and $3,795,000 respectively for the previous year. This year the City issued the following bonds : $1,320,000 in sewer revenue bonds to defease $1,170,000 of sewer revenue bond debt, $500,000 in sewer revenue bonds for sewer system improvements, $11,325,000 in leasehold revenue bonds to defease $10,410,000 in leasehold revenue bonds, and $2,655,000 in leasehold revenue bonds for street construction. Escrow accounts are held by a trustee that will be used to defease $7,090,000 in general obligation bonds on November 1, 1994. Only $820,000 of the bonds currently outstanding will currently require use of general fund revenues for their future debt service. The City has maintained its A rating from Moody's Investor Service on general obligation bond issues. Cash Management Policies and Practices. The City currently operates under an investment policy established by resolution of City Council on July 10, 1989 and amended by resolution on April 19, 1993. The major objectives of this policy are preservation of principal Xi 4 invested, availability of cash when needed, maintaining a market rate of return, and avoidance of any investment that may impair public trust. The policy allows City funds to be invested in U.S. Treasury issues, U.S. agency issues, repurchase agreements that are written and fully collateralized by the previous mentioned bonds that are delivered to a third party, collateralized or insured certificates of deposit, and money market instruments comprised of the above mentioned instruments. The City currently uses all the above instruments as investments for its operating funds. The proceeds of bond issues may be invested according to their indentures. At the end of this year the City's investment portfolio consisted of $12,652,998 of operating funds and bond proceeds invested according to the investment policy for operating funds, $9,164,365 of escrow accounts and bond proceeds accounts whose investments were controlled by entities outside the city, and $8,955,956 of construction and debt service proceeds whose investments were made by the City in permitted investments according to the indentures of leasehold revenue bonds and certificates of participation that had been insured by Financial Guaranty Insurance Company. All collected cash balances are daily used to purchase an overnight repurchase agreement through the City's depository. At the end of the year, the investment portfolio purchased according to the investment policy for operating funds had a weighted average yield and life of 6.11 % and 1.79 years respectively and the investment portfolio purchased according to bond indentures had a weighted average yield and life of 5.73% and 1.52 years respectively. Average U.S. treasury bond yields at the end of the year were 6.13% and 5.85% for the two-year and 18 -month maturity respectively. Risk Management. The City has established self-insurance plans for employees health insurance and worker's compensation. Both of these are accounted for in internal service funds that use premiums charged to other City funds to pay out health and workmen's compensation claims and administrative costs. The City has hired an administrator for each plan and is substantially self-insured, but is insured against large losses by private insurance companies.. Additionally, various control techniques have been implemented including employee accident prevention training, formation of employee safety committee, and committee review of all accidents. At the end of the year, the retained earning balances of the internal service funds that account for the health insurance and workmen's compensation plans have retained earnings balances of $867,990 and $234,062 respectively. Other Information Independent Audit. The City Charter of the City of Cape Girardeau requires that an annual audit be performed by independent certified public accountants. The firm of Begley, Janssen, Young, & Birk was selected by the City Council to audit the records of the City for the fiscal year ended June 30, 1994. The firm conducted their audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, X11 u u IJ �l "Audits of State and Local Governments." The audit was also designed to meet the requirements of the Single Audit Act of 1984. In the Financial Section of this report, the auditors' report on the general purpose financial statements and combining, individual fund and account group statements and schedules are included. In the Single Audit Section of this report, the auditors' report on internal controls and compliance with applicable laws and regulations concerning federal financial assistance can be found. Awards. This is the first year that the City of Cape Girardeau has participated in the Certificate of Achievement for Excellence in Financial Reporting. The Certificate of Achievement program was established to recognize and encourage excellence in financial reporting by state and local governments. In order to attain a Certificate of Achievement, a government must prepare a comprehensive annual financial report in accordance with generally accepted accounting principles (GAAP) and applicable legal requirements. A Certificate of Achievement is valid for one year only, so in order to participate in the program a comprehensive annual financial report must be submitted for review each year. The Finance Department of the City of Cape Girardeau would like to submit the comprehensive annual financial report of the City of Cape Girardeau for the fiscal year ended June 30, 1994 to the Government Finance Officers Association for review in the Certificate of Achievement program. We believe our report conforms to the program requirements and is an efficiently organized report that will enhance readers in accessing the financial affairs of the City of Cape Girardeau. Acknowled mg_ ents. The preparation of the comprehensive annual financial report has been a challenging experience, but one that has been a rewarding experience for the Finance Department. We feel this has been a significant accomplishment of which we are proud to have completed. We would like to express our appreciation to all those who have assisted in completion of this report and especially to Kimberly Dermott who has been responsible for the completion of the majority of this report . Additionally, we would also like to express our gratitude for management's support of this project which made the preparation of this report possible. Respectfully submitted, J. Ronald ischer City Manager John R. Richbourg Finance Director THIS PAGE INTENTIONALLY LEFT BLANK. 0 xiv .moi .XPi . . � ;dm +i® 2111111111 NiiIIIIIII Zillillill MilliIIIIII mm MIIIIIII MI � � I CITY OF CAPE GIRARDEAU. MISSOURI ORGANIZATIONAL CHART L CITY OF CAPE GIRARDEAU, MISSOURI PRINCIPAL OFFICIALS June 30, 1994 Elected Officials Mayor A.M. Spradling, III Councilmember, Zone 1 J.J. Williamson, Jr. Councilmember, Zone 2 Thomas A. Neumeyer Councilmember, -Zone 3 Marion J. Rickard CouncihRember, Zone 4 Melvin C. Kasten Councilmember, Zone 5 Melvin R. Gateley Councilmember, Zone 6 Richard L. Eggimann Aunointed Officials City Manager J. Ronald Fischer Assistant City Manager/ Public Works Director Douglas K. Leslie Administrative Services City Attorney Warren L. Wells Human Resources Director Daniel G. Ward Finance Director John R. Richbourg Convention & Tourism Director Mary F. Miller Public Safety Chief of Police Howard H. Boyd Fire Chief Robert L. Ridgeway Parks & Recreation Director Daniel D. Muser Development Services City Planner Kent M. Bratton L City Engineer Joseph K. Russell Inspection Services Director Richard L. Murray xvi FINANCIAL SECTION 1 1 1 1 1 1 THIS PAGE INTENTIONALLY LEFT BLANK. INDEPENDENT AUDITORS' REPORT THIS PAGE INTENTIONALLY LEFT BLANK. 4 t Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 334-2845 - FAX (314) 334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNIFER WESTRICH TERRY R. BEGLEY, CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA KELVIN W. BIRK, CPA INDEPENDENT AUDITORS' REPORT ON THE GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the accompanying general purpose financial We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Cape Girardeau, Missouri as of June 30, 1994, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. As discussed in Note Al to the financial statements, the Library Fund was changed from a Special Revenue Fund to an Agency Fund for the June 30, 1994 financial statements due to the application of Governmental Accounting Standards Board No. 14. statements of the City of Cape Girardeau, Missouri as of June 30, 1994, and for the year then ended as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Cape Girardeau, Missouri's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Cape Girardeau, Missouri as of June 30, 1994, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. As discussed in Note Al to the financial statements, the Library Fund was changed from a Special Revenue Fund to an Agency Fund for the June 30, 1994 financial statements due to the application of Governmental Accounting Standards Board No. 14. Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri Page 2 Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Cape Girardeau, Missouri. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The accompanying information in the statistical section is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. Such information has not been subjected to the procedures applied in the audit of the general purpose financial statements and, accordingly, we express no opinion on it. F�0. # 4�e' � � PAVZ- Cape Girardeau, Missouri October 19, 1994 n n u GENERAL PURPOSE FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK. City of Cape Girardeau, Missouri COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1994 (CONTINUED) THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PARTOFTHIS STATEMENT. Fiduciary Governmental Fund Types Proprietary Fund Types Fund Type Account Groups General General General Special Revenue Debt Service Capital projacts Enterprise Internal Service Aperic Mad Assets Long -Tenn Debt Totals (Memorandum 6-3p-9 Only) 6-30-93 ASSETS AND OTHER DEBITS Assets: Cash and cash equivalents $2,323,789 $474,842 $169,117 $36713,882 $1,375,722 $446,696 $140,150 $- $- $8,644,198 $10,009,021 Investments - 1,726,159 9,560,939 3,907,111 1,037,648 $1,228,237 1,097,947 - - 18,558,041 14,597,550 Receivables, net of aliovances for doubtful receivables Real estate, personal property, and merchants taxes 48,152 7,807 14,653 - - - 22,121 - - 90,733 113,007 Sales tax 478,666 119,911 - - - - - - - 598,577 565,489 Franchise taxes 1,124,578 - - - - - - - - 1,124,578 1,104,824 Hotel -motel tax receivable - 29,016 - - - - - - - 29,016 20,351 Restaurant tax receivable - 44,018 - - - - - - - 44,018 37,068 I'D Utility charges receivable - - - - 1,129,144 - - - - 1,129,144 1,129,912 Special assessments receivable 4Q258 - 454,593 189,137 37,479 - - - - 721,467 783,972 Interest receivable 23,688 40,015 33,539 31,083 39,427 14,662 1,552 - - 183,966 85,162 Other receivables 49,683 38,161 - - 69,995 17,890 159 - - 175,888 325,250 N otes receivable - - - %130 - - - - - 16,130 20,163 Intergovernmental receivables Motor fuel tax - 69,379 - - - - - - - 69,379 56,419 Motorvehicle license fees - 13,269 - - - - - - - 13,269 13,168 Motor vehicle sales tax - 18,860 - - - - - - - 18,860 15,934 Grants receivable 28,353 41,817 - 129,060 - - - - - 199,230 105,921 Due from other funds 250,776 - - - - - - - - 250,776 362,452 Advances to other funds 1,797,500 - - - - - - - - 1,797,500 1,797,500 Inventories 137 - - - 156,604 7,921 - - - 164,662 181,367 Restricted assets Cash and cash equivalents - - - - 2,817,101 - - - - 2,817,101 2,404,520 Investments - - - - 1,663,567 - - - - 1,663,567 2,268,066 Prepaid expenses 58,879 10,432 - - 364,001 123,050 7,824 - - 564,186 496,681 Fixed assets, net of accumulated depreciatlon - - - - 24757,772 727,778 - 10.451,750 - 39,937,300 38,509,148 Other debits: Amount available in Debt Service Fund - - - - - - - - 9,767,195 9,767,195 9,768,175 Amount to be provided for retirement of general long -tern debt - - - - - - - - 14260,661 18,260,661 14700,410 Amoun t to be provided for future payment of compensated absences - - - - - - - - 491,531 491,531 452,697 Total assets and other debits $6,222,459 $2,633,686 $10,232,841 $7,986,403 $37,448,460 $2566,234 $1,269,753 $10,451,750 $28,519,367 $107,330,973 $101,930,247 (CONTINUED) THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PARTOFTHIS STATEMENT. Total iabilities, equity and other credits E8�222.459 633686 $10.232 841$7.986.403 37 44 460 $2568234 1��53 10 451750 28 519 387 $107,330,973 $101,930,247 THE NOTES TO TH E FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF T HIS STATEMENT. ri ir.r.. inns... = = = C_ U =.- iron. r.� .rn., M.- fir- = Mr _- City of Cape Girardeau, Missouri COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1994 Fiduciary Governmental Fund Types Proprietary Fund Types Fund Type Account Groups General General General Special f1mranue Debt Capital Service EvQktch Enterorise Internal Samoa Fbdad Assets Long -Term ,Totals Debt Memorandum 6-3D-94 Only) 6-30-93 UABIUTIES, EQUITY AND OTHER CREDITS Liabilities: Accountspayabie $268,228 $84,469 $- $288,809 $844,361 $360,053 $18,557 $- $- $1,864,477 $1,415,519 Accrued liabilities Salaries,payroll taxes and benefits 228,992 44,215 - - 112,784 25945 7,250 - 491,531 910,717 845,532 Interest payable - - - - 353,063 - - - - 353,063 421,800 Other liabilities 40,981 169 - 9,942 136,278 42 247,538 - - 434,950 356,182 Due to other govemm ents 9,390 - - 1,000 124,904 - - - 93,658 228,952 144,932 Due to other funds - 7Q795 - 179,982 - - - - - 250,777 362,452 Advanoefrom other funds - - - - 1.722,500 - 75,000 - - 1,797,500 1,797,500 Current portion of long-term debt - - - - 732,761 - - - 12,651,558 13,384,319 1,880,000 Long-term debt net of current portion Revenue bonds payable - - - - 15,657244 - - - - 15,657244 15,325,521 Leasehold revenue bonds payable 3,258,965 - - - 11,822,640 15,081,605 14,125,485 ~O part Certificates of participation - - _ _ - - 3,460.000 3,460.000 3,545,000 General obligation bonds payable - - - - - - - 3,715,000 General obilgatlonrefunding bonds payable - - - - - - - - - - 7,270,000 Estimated landllll closure and post -closure care cost liability - - - - 2,132,227 - - - - 2,132,227 - Deferred compensation due employees - - - - - - 901,051 - - 901,051 692,606 Deferred revenues 914,024 181,352 465,646 189,056 - - 20.357 - - 1,770,435 1,367,757 Total liabilities 1,461,615 381,000 465,646 668,789 25,075,087 386,040 1,269,753 - 24519,387 58,227,317 53,265,286 Equity and other credits: Investment In general fixed assets - - - - - - - 10,451,750 - 1Q451,750 9,357,618 Contributed capital - - - - 15,151,561 - - - - 15,151,561 14,575,528 Retained earnings: Reserved - - - - 25,000 - - - - 25,000 16,667 Unreserved - - - - (2,803,188) 2,180,194 - - - (622,994) 1,078,330 Fund Balance: Reserved 2,054,796 21,409 9,767,195 6,906,334 - - - - - 18,749,734 17,224,585 Unreserved 2,706,048 2,231,277 - 411,280 - - - - - 5,348,605 6,412,233 Total equity and other credits 4,760,844 2,252,686 9,767,195 7,317,614 12,373,373 2,180,194 - 10.451,750 - 49,103,656 48,664,961 Total iabilities, equity and other credits E8�222.459 633686 $10.232 841$7.986.403 37 44 460 $2568234 1��53 10 451750 28 519 387 $107,330,973 $101,930,247 THE NOTES TO TH E FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF T HIS STATEMENT. ri ir.r.. inns... = = = C_ U =.- iron. r.� .rn., M.- fir- = Mr _- hi L u City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 GOVERNMENTAL FUND TYPES TOTALS SPECIAL DEBT CAPITAL (MEMORANDUM GENERAL REVENUE SERVICE PROJECTS ONLY) REVENUES $278,713 Taxes $8,984,860 Licenses and permits 741,703 Intergovernmental 491,070 Charges for services 281,411 Interdepartmental services 461,434 Fines and forfeltures 577,296 Miscellaneous 119,366 Interest 120,182 TOTAL REVENUES 11,777,322 EXPENDITURES $278,713 Current $11594,887 Administrative services 1,152,806 Development services 1,041,213 Parks and recreation 816,446 Public safety 6,005,284 Public works 1,351,523 Contingency 232,876 Capital outlay - Debt service 461434 Principal - Interest and fiscal charges 1,133 TOTAL EXPENDITURES 10,601,281 EXCESS (DEFICIENCY) OF REVENUES 265,745 OVER (UNDER) EXPENDITURES 1,176,041 OTHER FINANCING SOURCES (USES) 1,097,173 Operating transfers in 1,907,083 Operating transfers out (2,268,816) Compensation for damages 34,800 Proceeds from fixed assets 142 Special assessments 1,335 Proceeds of debt financing - Gain on sale of securities - Proceeds of refunding bonds - Payment to refunded bond escrow agent - TOTAL OTHER FINANCING SOURCES (USES) (325,456) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES 850,585 FUND BALANCE AT BEGINNING OF YEAR 3,910,259 RESIDUAL EQUITY TRANSFERS IN - RESIDUAL EQUITY TRANSFERS OUT - FUND BALANCE AT END OF YEAR $4,760,844 $2,331,314 $278,713 $- $11594,887 - - - 741,703 1,210,324 8,328 723,692 2,433,414 276,200 - - 557,611 - - - 461434 - - - 577,296 125,333 - 21,046 265,745 101,598 543,399 331,994 1,097,173 4,044,769 830,440 1,076,732 17,729,264 2,401,061 (2,960,965) (2,106,800) (1,490,661) 547,500 1,152,806 310,088 - - 1,351,301 661,083 - - 1,477,529 112,075 - - 6,117,359 553,541 - - 1,905,064 - - - 232,876 - - 3,085,134 3,085,134 - 1,871,485 - 1,871,485 6,920 1,919,920 98,398 2,026,371 1,643,707 3,791,405 3,183,532 19,219,925 2,401,061 (2,960,965) (2,106,800) (1,490,661) 547,500 2,221,989 945,543 5,622,115 (3,300,499) - (1,308,348) (6,877,663) - - - 34,800 - - 78,150 78,292 - 128,620 52,225 182,180 - 265,500 2,389,500 2,655,000 2,801 6,535 2,292 11,628 - 7,845,934 - 7,845,934 - (7,600,104) - (7,600,104) (2,750,198) 2,868,474 2,159,362 1,952,182 (349,137) (92,491) 52,562 461,521 2,785,219 9,768,176 7,192,564 23,656,218 (8,371) 91,510 72,488 155,627 (175,025) - - (175,025) $2,252,686 $9,767,195 $7,317,614 $24,098,341 THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. 11 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (BUDGET BASIS) - GENERAL AND SPECIAL REVENUE FUND TYPES FOR THE FISCALYEAR ENDED JUNE 30, 1994 GENERALFUND VARIANCE FAVORABLE BUDG ACTUAL (UNFAVORABLEI SPECIAL REVENUE FUNDS VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes $8,764,809 $8,964,860 $220,051 $2,156,055 $2,331,314 $175,259 Licenses and permits 756,404 741,703 (14,701) - - - Intergovemmental 195,000 491,070 296,070 1,301,800 1,210,324 (91,476) Charges for services 270,000 281,411 11,411 261,500 276,200 14,700 Interdepartmental services 430,739 461,434 3X695 - - - Fine* and forfeitures 565,000 577,296 12,296 - - - Miscelaneous 50,000 119,366 69,366 117,100 125,333 8,233 Interest 86,300 120,182 33,882 62,200 101,598 39,398 TOTAL REVENUES 11,118,252 11,777,322 659,070 3,898,655 4,044,769 146,114 EXPENDITURES -- Current Administrative services 1,199,638 1,152,806 46,832 A000 - 3,000 Development services 1,155,478 1,041,296 114,182 330,250 313,286 16,964 Parks and recreation 912,385 818,401 93,984 625,706 661,737 (35,031) Public safety 6,102,035 6,044,501 57,534 124,971 112,600 12,371 Public works 1,475,660 1,421,354 54,306 853,539 560,462 293,077 Contingency 203,570 232,876 (29,306) - - - Debt service Principal - - - - - - Interestandfiscalcharges - 1,133 (1,133) - 6,920 (6,920) TOTAL EXPENDITURES 11,048,766 10,712,367 336,399 1,938,466 1,655,OD5 283,461 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 69,486 1,064,955 995,469 1,960,189 2,389,763 429,575 OTHER FINANCING SOURCES (USES) Operating transfers in 1,907,083 1,907,083 - 547,500 547,500 - Operating transfers out (2,253,271) (2268,816) (15,545) (3,370,499) (3,30X499) 70,000 Compensation for damages - 34,800 34,800 - - - Proceeds from foxed assets 7,500 142 (7,358) - - - Gain on sale of securities - - - - 2,801 2,801 Special assessments - 1,335 1,335 - - - TOTAL OTHER FINANCING SOURCES 338,686 (325`456) 13,232 2,822,999 (2,750,198) 72,801 (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (269,202) 739,499 1,008,701 (862810) (360,435) 502,376 FUND BALANCE AT BEGINNING OF YEAR 3,910,259 3,910,259 - 2,785,219 2,785,219 - RESIDUAL EQUTTY TRANSFERS IN - - - (8,371) (8,371) - RESIDUAL EQUITY TRANSFERS OUT - - - 175 (175,025) - FUND BALANCE AT END OF YEAR $3,641,057 $4,649,758 $1,008,701 $1,739,013 $2.241,388 $502,376 THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. 12 11 TI n THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. 13 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (BUDGET BASIS) - DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 DEBT SERVICE FUND CAPITAL PROJECTS FUNDS VARIANCE VARIANCE BUDGET ACTVA1. FAVORABLE UNFAVORABLEt -• BUDGET ACTUAL FAVORABLE fUNFAVORABLEI REVENUES Taxes $248,300 $278,713 $30,413 $- $- Intergovernmental 8,000 8,328 328 921,664 723,692 (197,972) Miscellaneous - - - - 21,046 21,046 Interest 365,237 543,399 178,162 196,000 331,994 135,994 TOTALREVENUES 621,537 830,440 206,903 1,117,664 1,076,732 (40,932) EXPENDITURES Capitaloutle/ - - - 7,551,974 3,633,246 3,918,728 Debt service Principal 1,659,500 1,871,485 (211,985) - - - Interest and fiscal charges 1,512,290 1,919,920 407,630 1,000 98,398 (97,398) TOTAL EXPENDITURES 3,171,790 3,791,405 619,61 7,552,974 3,731,644 3,821,330 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2550,253) (2,960,965) (41Q712) (6,435,310) (2,654,912) 3,780,388 OTHER FINANCING SOURCES (USES) Operating transfers in 2,220,722 2,221,989 1,267 1,000,000 945,543 (54,457) Operating transfers out - - - (1,307,083) (1,308,348) (1265) Special assessments 110,000 128,620 18,620 585,000 52,225 (532,775) Proceeds of debt financing 265,500 265,500 2,389,500 2,389,500 Proceeds from foxed assets - - - - 78,150 78,150 Gain on sale of securities Proceeds of refunding bonds = 6,535 7,845,934 6,535 7,845,934 - 2,292 2,292 Payment b refunded bond escrow agent (7,600,104) ,600,104 TOTAL OTHER FINANCING SOURCES (USES) 2,330,722 2,868,474 537,752 277,917 2,159,362 1,881,445 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (219,531) (92,491) 127,040 (6,157,393) (495,550) 5,661,843 FUND BALANCE AT BEGINNING OF YEAR RESIDUAL EQUITY TRANSFERS IN 9,768,176 91,510 9,768,176 91,510 _ 7,192,564 72,488 7,192,564 72,488 FUND BALANCE AT END OF YEAR $9,640,155 $9,767,195 $127,040 $1,107,659 $6,769 502 $5,661 843 n THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. 13 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 OPERATING REVENUES Residential charges Commercial charges Transfer station charges Equipment sales Concession revenues Golf course fees Other fees and charges Interdepartmental services Rental revenue Donations Other miscellaneous TOTAL OPERATING REVENUES OPERATING EXPENSES Personnel services Materials and supplies Contractual services General operating expenses Special projects expense Internal service expenses Depreciation expense TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES) Interest Income Federal grants State grants Sale of fixed assets Compensation for damages Gain on sale of securities Issuance cost amortization Interest and handling costs TOTAL NON-OPERATING REVENUES (EXPENSES) INCOME (LOSS) BEFORE OPERATING TRANSFERS Operating transfers in NET INCOME (LOSS) RETAINED EARNINGS (DEFICM AT BEGINNING OF YEAR PRIOR PERIOD ADJUSTMENT RESIDUAL EQUITY TRANSFERS OUT RETAINED EARNINGS (DEFICIT) AT END OF YEAR PROPRIETARY FUND TYPES INTERNAL ENTERPRISE SERVICE $4,736,475 2,606,674 490,215 10,143 60,475 357,086 224,605 100 26,139 8,511,912 1,779,197 232,851 3,067,015 371,844 54,864 351,902 1,238,289 7,095,962 1,415,950 310,139 45,384 1,939 17,930 4,074 22,630 (45,638) (1,279,192) (922,734) 493,216 493,216 10,507,155 (12,090.662) (1,687,897) ($2,778,188) 2,285,882 127 2,286,009 392,742 229,430 1,370,538 1,272,806 3,298 126,515 3,395,329 (1,109,320) 47,726 (862) 3,761 1,464 (2,949) 49,140 (1,060,180) 1,255,548 195,367 1,984,827 $2,180,194 THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. 14 TOTALS (MEMORANDUM ONLY) 1993-1994 $4,736,475 2,606,674 490,215 10,143 60,475 357,086 224,605 2,285,882 100 26,266 10,797,921 2,171,940 462,281 4,437,553 1,644,650 54,864 355,200 1,364,804 10,491,291 306,630 357,865 45,384 1,939 17,068 7,835 24,095 (45,638) (1,282,141) (873,593) (566,963) 1,255,548 688,583 12,491,982 (12,090,662) (1,687,897) ($597,994) L� City of Cape Girardeau, Missouri COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 PROPRIETARY FUND TYPES n CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers in from other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from developers Proceeds from SRF bond issue Principal paid on revenue bonds Principal paid on lease purchase bonds Interest paid on bonds and obligations Proceeds from capital grants received from other governments Purchase of fixed assets Other NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments Proceeds from sale of investments Interest on investments NET CASH USED IN INVESTING ACTIVITIES INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR CASH PAID DURING THE YEAR FOR INTEREST NON-CASH CAPITAL FINANCING ACTIVITIES: Contributions of fixed assets ENTERPRISE $1,415,950 1,238,290 47,322 1,194 10,268 (50,778) 230,658 (32,578) (249, 347) 2,610,979 200,200 487,024 (45,000) (421, 094) (1,208,758) 47,784 (1,357,049) 85,365 (2,211,528) (2,997,823) 3,167,487 310,139 479,803 879,254 3,313,569 $4,192,823 $1,208,758 $154,026 INTERNAL SERVICE ($1,110,224) THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. 15 126,515 293,865 6,429 (1,644) (54,350) 1,453 (737,956) 1,255,548 1,255,548 (84,587) 3,851 (80,736) (1,047,375) 602,359 47,726 (397,290) 39,566 $446,696 TOTALS (MEMORANDUM ONLY) 1993-1994 $305,726 1,364,805 47,322 295,059 16,697 (52,422) 176,308 (31,125) (249,347) 1,873,023 1,255,548 1,255,548 200,200 487,024 (45,000) (421,094) (1,208,758) 47,784 (1,441,636) 89,216 (2,292,264) (4,045,198) 3,769,846 357,865 82,513 918,820 3,720,699 $4,639,519 $1,208,758 $154,026 CASH FLOWS FROM OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Cash operating grants received Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in landfill postclosure care costs NET CASH PROVIDED BY OPERATING ACTIVITIES n CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers in from other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from developers Proceeds from SRF bond issue Principal paid on revenue bonds Principal paid on lease purchase bonds Interest paid on bonds and obligations Proceeds from capital grants received from other governments Purchase of fixed assets Other NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments Proceeds from sale of investments Interest on investments NET CASH USED IN INVESTING ACTIVITIES INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR CASH PAID DURING THE YEAR FOR INTEREST NON-CASH CAPITAL FINANCING ACTIVITIES: Contributions of fixed assets ENTERPRISE $1,415,950 1,238,290 47,322 1,194 10,268 (50,778) 230,658 (32,578) (249, 347) 2,610,979 200,200 487,024 (45,000) (421, 094) (1,208,758) 47,784 (1,357,049) 85,365 (2,211,528) (2,997,823) 3,167,487 310,139 479,803 879,254 3,313,569 $4,192,823 $1,208,758 $154,026 INTERNAL SERVICE ($1,110,224) THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. 15 126,515 293,865 6,429 (1,644) (54,350) 1,453 (737,956) 1,255,548 1,255,548 (84,587) 3,851 (80,736) (1,047,375) 602,359 47,726 (397,290) 39,566 $446,696 TOTALS (MEMORANDUM ONLY) 1993-1994 $305,726 1,364,805 47,322 295,059 16,697 (52,422) 176,308 (31,125) (249,347) 1,873,023 1,255,548 1,255,548 200,200 487,024 (45,000) (421,094) (1,208,758) 47,784 (1,441,636) 89,216 (2,292,264) (4,045,198) 3,769,846 357,865 82,513 918,820 3,720,699 $4,639,519 $1,208,758 $154,026 THIS PAGE INTENTIONALLY LEFT BLANK. 16 m m I NOTES TO THE FINANCIAL STATEMENTS n 1 17 THIS PAGE INTENTIONALLY LEFT BLANK. i City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Cape Girardeau, Missouri 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 decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in GAAP. Effective for the June 30, 1994 financial statements, the City adopted GASB No. 14, "The Financial Reporting Entity," which provides authoritative guidance on determining the treatment of potential component units. The basic— but not the only— criterion for including a potential component unit within the reporting entity is financial accountability. The main factors in determining financial accountability are: appointing a voting majority of the potential component unit's governing body, the City's ability to impose its will on the potential component unit, a financial benefit of burden resulting to the City, and fiscal dependency. Based on the foregoing criteria, the financial statements of the following entities are included in the accompanying financial statements. Cape Girardeau (Missouri) Public Facilities Authority - As described in Note E, the City of Cape Girardeau, Missouri has entered into six lease agreements with the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The CGPFA is a not-for-profit corporation organized and existing under Chapter 355 of the Revised Statues of Missouri. The CGPFA board of directors consist 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 corporation was used to execute the bond indentures for the purpose of issuing and securing the Series 1988 Bonds, Series 1989 Bonds, Series 1990A Bonds, Series 1990B Bonds, Series 1991 Bonds, Series 1993 Bonds, and limited additional bonds. These bonds were used to finance construction and improvements to sewer, solid waste, street, airport, flood control and other capital improvement projects. The bond payments are obligations of the CGPFA. The CGPFA has entered into a Lease Purchase Agreement with the City from which the lease payments will be used solely to retire the debt. 19 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 1. Reporting Entity - Continued Also based on the criteria above, the following entities are excluded from the financial statements of the City: the Downtown Redevelopment Corporation, the Park Development Foundation, Show Me Center Board of Managers, and the Cape Girardeau Public Library. Although they are not a component unit of the City, the City handles the funds of and provides accounting and other services for several entities, some of which are listed m the preceding paragraph. Since these funds are held in the City's name, these'entities are shown as Agency Funds in the financial statements. The Cape Girardeau Public Library (Library) had previously been reported as a Special Revenue Fund. However, dile to the application of GASB No. 14, the Library is now classified as a related organization and therefore its financial statements are not included with the City. The City provides accounting and other services for the Library. 2. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into fund categories. GOVERNMENTAL FUND TYPES General Fund - The General Fund is the general operating fund of the City. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Fund -The Debt Service fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capital Projects Funds - Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities, which are not financed by Proprietary Funds 20 R J 11 n City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 2. Fund Accounting - Continued and Trust Funds. PROPRIETARY FUND TYPES Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of revenues collected, expenses Md, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City, on a cost -reimbursement basis. FIDUCIARY FUNDS Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and /or other funds. Agency Funds are custodial in nature and do not involve measurement of results of operations. GENERAL FIXED ASSETS AND GENERAL LONG-TERM DEBT ACCOUNT GROUPS General Fixed Assets (GFA) - The General Fixed Assets Account Group is used to account for fixed assets used in governmental fund type operations for control purposes. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date of donation. Depreciation is recorded on general fixed assets. General Long -Term Debt Account Grout) - The General Long -Term Debt Account Group is used to account for long-term liabilities to be financed from government funds. 3. Fixed Assets General Fixed Assets Account Group - Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Group of Accounts, rather than in governmental funds. Public domain (infrastructure) general fixed assets, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized along with other general fixed 21 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 3. Fixed Assets - Continued assets. Depreciation has been provided on all capitalized assets, except for land. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated assets are valued at their estimated fair value on the date donated. Repairs and maintenance are recorded as expenditures; renewals and betterments are capitalized. Proprietary Funds - Additions to the Proprietary Funds are recorded at cost or, if contributed property, at their estimated fair value at time of contribution Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. The sale or disposal of fixed assets is recorded by removing cost and accumulated depreciation from the accounts and charging the resulting gain or loss to income. Depreciation of all exhaustible fixed assets used by Proprietary Funds is charged as an expense against their operations. Accumulated depreciation is reported on Proprietary Fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows. Buildings 25-50 years Improvements 10-40 years Equipment 3-10 years When applicable, interest costs are capitalized on self -constructed fixed assets. 4. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. R 22 U 0 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 4. Basis of Accounting - Continued The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available.) "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers revenue to be available if it is collected within 30 days after year-end. Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fupd for payments to be made early in the following year. 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. The accrual basis of accounting is utilized by proprietary funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. 5. Encumbrances Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized in all funds. Encumbrances outstanding at the end of the year in the governmental funds are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be carried forward and honored during the subsequent year. Encumbrances outstanding in the proprietary funds do not constitute expenses but will be honored in the subsequent year. 6. Budgets and Budgetary Accounting The City adopts annual operating budgets for all funds except the Risk Management Fund. 23 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 6. Budgets and Budgetary Accounting - Continued 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 commencing the following July 1. 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. S. 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. Additional budget appropriations by department made throughout the year are as follows: Administrative services $ 16,075 Parks and recreation 14,582 Public safety 72,925 Public works 146,578 Capital outlay 30,000 Contingency 153,570 Employees' Fringe Benefits 1,255,548 $ 1,689,278 Of the above appropriations, $1,255,548 was for payment to LAGERS for refund of employee contributions, $233,840 for flood expenditures from the Mississippi River flooding of 1993, $30,000 for city hall parking lot improvements, $40,700 for landfill closure costs, and $129,190 for miscellaneous general operating and contractual services costs of the general, airport, parks and recreation, solid waste, and golf course funds. For the year ended June 30, 1994, expenditures of the debt service fund, employees' fringe benefit fund, and the general fund contingency expenditure exceeded the approved budget by $619,615, $76,534, and $29,306 respectively. 24 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 6. Budgets and Budgetary Accounting - Continued The Combined Statement of Revenues, Expenditures, and Changes in Fund Balance -All Governmental Fund Types reports revenues and expenditures on the modified accrual basis of accounting in accordance with GAAP. The Combined Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual (Budget Basis) for all governmental fund types is prepared on a budgetary basis of including encumbrances as expenditures. The individual proprietary schedules of comparing budget to actual is reported on a budgetary basis of reporting encumbrances as expenses. In order to provide a comparison to GAAP statements, the adjustments are reported as follows: Net Income (Loss) The following reconciliation adjusts GAAP basis to budget basis: Excess (Deficiency) of Revenues and Other Fleet Financing Sources over Expenditures and Sewer Water Course Other Financing Uses GAAP Basis $ 341,595 Special Debt Capital $ 50,623 $ (9,367) General Revenue Service Projects GAAP Basis $ 850,585 $ (349,137) $ (92,491) $ 52,562 Decrease due to: Year-end encumbrances Materials and supplies Development services 83 3,198 Parks and recreation 1,955 654 3,595 Public safety 39,217 525 Public works 69,831 6,921 Capital outlay 2,977 548.112 3,839 1,051 111,086 11,298 - 548,112 ■ Budget Basis 739 499 $(360,4251 92 491 $(495.55 The individual proprietary schedules of comparing budget to actual is reported on a budgetary basis of reporting encumbrances as expenses. In order to provide a comparison to GAAP statements, the adjustments are reported as follows: Net Income (Loss) 25 Golf Fleet Sewer Water Course Management GAAP Basis $ 341,595 $ 29,430 $ 50,623 $ (9,367) Decrease due to: Year-end encumbrances Materials and supplies 244 1,051 Contractual services 2,977 169 3,595 Special projects expenses 19,300 2,977 19,469 3,839 1,051 Budget Basis L228A618 9,961 46 784 10 418 25 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 7. Inventories Inventories consist primarily of supplies, valued at cost, which approximates market. Cost is determined using a weighted average method. The cost of inventories is recorded as expenditures or expenses when consumed rather than when purchased. 8. Compensated Absences Vested or accumulated vacation pay for proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. Amounts of vested or accumulated vacation leave of governmental funds that are not expected to be liquidated within the current year are reported in the general long-term debt account group. Employees may accumulate up to 30 days vacation, for which they are compensated upon termination or retirement. - Employees are not compensated for accumulated sick leave upon termination or retirement. 9. Bond Discounts/Issuance Costs In governmental fund types, bond discounts and issuance costs are recognized in the current period. Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds. Bond discounts are presented as a reduction of the face amount of bonds payable whereas issuance costs are recorded as deferred charges. 10. Total Columns - Memorandum Only D T m Total Columns are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present results of operations in conformity with j generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 11. Cash and Cash Equivalents For purposes of the statement of cash flows, the proprietary fund types consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. 12. Comparative Data Comparative totals for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, presentation of prior year totals by fund type have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. m 26 r' - City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 13. Prepaid Items ® Payments made to vendors for services that will benefit periods beyond June 30, 1994 are recorded as �! prepaid items. 14. 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. 15. Long-term Obligations Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long-term debt account group. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in the appropriate proprietary fund. 16. Interfund Transactions Quasi -external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi -external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 17. Short-term Interfund 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 "due from other funds" or "due to other funds" on the balance sheet. Short-term interfund loans are classified as "interfund receivables/payables". 18. Advances to Other Funds INoncurrent portions of long-term interfund loan receivables are reported as advances and are offset w 27 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 18. Advances to Other Funds - Continued equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation 19. Post -Employment Health Care Benefits In addition to the pension benefits described in Note H, it is the City's policy to provide postretirement health care benefits to employees who retire from the City with five or more years of service and who are eligible for LAGERS retirement (Note H). Currently, eighteen employees meet those eligibility requirements. The City provides health care coverage for them until age 65. The cost of retirees' health care benefits is recognized as an expenditure as premiums are paid. For 1994, those costs totaled $25,023. COBRA Benefits - Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the City provides health care benefits to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium is paid in full by the insured on or before the tenth (10th) day of the month for the actual month covered. This program is offered for a duration of 18 months after the termination date. There is no associated cost to the City under this program, and there were two participants in the program as of June 30, 1994. NOTE B - DEPOSITS AND INVESTMENTS 1. Deposits At June 30, 1994, the carrying amount of the City's deposits was $601,600 and the bank balance was $597,155 which excludes $4,445 of petty cash funds held at various City locations. The deposits are categorized in accordance with risk factors created by governmental reporting standards. Carrying Bank Amount Balance Category #1 $ 112,912 $ 112,912 Category #2 488,688 484,243 Category #3 - - 601600 597155 Category #1 includes deposits covered by deposit insurance or collateral held by the City in the City's name. Category #2 includes deposits covered by collateral held by the financial institution's trust department in the City's name. Category #3 includes deposits which are uncollateralized or the collateral is held by the financial institution's trust department but not in the City's name. 28 w U, I .l City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE B - DEPOSITS AND INVESTMENTS - Continued 2. Investments The City is allowed to invest its available operating and reserve funds in (1) obligations of the United States or its agencies and instrumentalities; (2) repurchase agreements collateralized by securities listed in (1) above, documented by a written agreement, fully collateralized by delivery to an independent third party'custodian, and are marked -to -market; (3) Insured or collateralized deposits or certificates of deposit of banks, savings and loan associations, and other regulated financial institutions; (4) money market mutual funds whose portfolio consists of the foregoing instruments; and (5) other prudent investment instruments approved prior to purchase by a two-thirds majority of the City Council. Proceeds of bond issues may be invested as allowed in the bond indenture. Investments made by the City are summarized below. The investments that are represented by specific identifiable investment securities are classified as to credit risk by the three categories described below: Category #1 Insured or registered, or securities held by the City or its agent in the City's name. Category #2 Uninsured and unregistered, with securities held by the counter -party's trust department or agent in the City's name. Category #3 Uninsured and unregistered, with securities held by the counter -party, or by its trust department or agent but not in the City's name. $ 28,595,335 $ - $-7— State Revolving Fund Program Investments in Deferred Compensation Plan 28,595,335 28,321,996 1,584,923 1,584,923 901,051 901,051 $ 31,081,309 $ 30,807,970 Included in the amounts shown above is $3,579,655 to be used to retire the 1984 Public Building Bonds and $3,654,700 to be used to retire the 1987 General Obligation Refunding Bonds (Note E). 29 Category Carrying Market #1 #2 #3 Value Value Repurchase Agreements $ 2,373,037 $ - $ - $ 2,373,037 $ 2,373,037 Certificates of Deposit - Insured By Agencies of U.S. Government 1,082,058 - - 1,082,058 1,082,058 U.S. Government Securities 22,255,538 - - 22,255,538 21,982,199 Money Market Account U.S. Government Securities 2,884,702 - - 2,884,702 2,884,702 $ 28,595,335 $ - $-7— State Revolving Fund Program Investments in Deferred Compensation Plan 28,595,335 28,321,996 1,584,923 1,584,923 901,051 901,051 $ 31,081,309 $ 30,807,970 Included in the amounts shown above is $3,579,655 to be used to retire the 1984 Public Building Bonds and $3,654,700 to be used to retire the 1987 General Obligation Refunding Bonds (Note E). 29 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE C - PROPERTY TAXES Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on August 25, 1993, for collection during this fiscal year and were due on or before December 31. Most of the taxes are collected in November and December. The tax rates assessed at the time were as follows: City Revenue Library Tax Public Health Tax Debt Service Tax Special Business District #2 (Ad Valorem) $ .32/100.00 assessed valuation .16/100.00 assessed valuation .05/ 100.00 assessed valuation .10/100.00 assessed valuation .80/100.00 assessed valuation Property tax receivable balances as of June 30, 1994 are as follows: Downtown Business Debt General District Health Service Library Total Current property tax $ 31,569 $ 696 $ 4,851 $ 9,925 $ 15,119 $ 62,160 Delinquent property tax 27,421 453 3,603 8,962 12,794 53,233 Reserve for doubtful property taxes1( 2,838) (85) (1,711) (4,234) (5.792)2� 4,660) Net property tax receivables LI&743 LZZ,121 90 733 NOTE D - CHANGES IN FIXED ASSETS Additions and deletions to the Enterprise Funds for the fiscal year 1994 were $1,685,098 and $159,369 respectively. Additions and deletions to the Internal Service Funds were $84,587 and $2,795 respectively. A summary of fixed assets at June 30, 1994 follows: Land Buildings Improvements other than building Equipment Construction in progress Less accumulated depreciation General Fixed Enterprise Internal Assets Fund Service Fund $ 2,073,938 $ 191,790 $ 37,500 9,308,646 9,060,278 363,214 4,162,505 26,531,357 26,850 3,823,924 3,110,941 957,854 1,217,052 304,890 - $ 20,586,065 $ 39,199,256 $ 1,385,418 10,134,315 10,441,484 657,640 $ 10,451,750 $ 28,757,772 $ 727,778 30 9 11 r n � City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS The following is a summary of bond transactions of the City for the year ended June 30, 1994. General Leasehold Certificates Obligation Revenue Revenue of Bonds Bonds Bonds Participation Total Bonds payable at July 1, 1993 $ 11,175,000 $ 15,400,521 $ 15,481,292 $ 3,795,000 $ 45,851,813 Airport Bond Discount 9,193 9,193 Discount Amortization 7,809 _-6,366 14,175 Bonds Issued 1,820,000 13,963,617 15,783,617 Bonds Defeased (1,170,000) (10,410,000) (11,580,000) Discount on.Defeased Debt 45,100 45,100 Bonds Retired (190,000) (45,000) (1,840,000) (250.0W) 2 325 000 Bonds payable at June 30, 1994 $ 10,985,000 $ 16,013,330 $ 17,255,568 3 45.000 $ 47,798,898 Bonds payable at June 30, 1994 are comprised of the following individual issues. $ 3,715,000 1984 Public Building Serial Bonds due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 9.00% $ 3,715,000 184,142 $ 3,899,142 $ 3,715,000 184 142 $3,899142 Principal payments are made on November 1, and interest payments are made semi-annually on May 1, and November 1. After the payment of $205,000 is made on November 1, 1994, proceeds from the 1987 Refunding Bonds will be used to retire the remaining $3,510,000 of the 1984 Public Building serial bonds. $ 3,580,000 1987 General Obligation Refunding Bonds due as follows: Interest Year Ending Interest Principal Interest Paid From June 30 Rate Due Due Escrow Total 1995 Various $ 3,580,000 $238,628 119,869 $ 3,698,759 $ 3,580,000 238 628 119,869 $ 3,698,759 31 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued Principal payments are made annually on November 1, and interest payments are made semi-annually on May 1, and September 1. On August 1, 1987, the City of Cape Girardeau issued $3,580,000 of General Obligation Refunding Bonds Series 1987 with interest rates varying from 6.00% to 7.10%. The Refunding bonds constitute general obligations of the City and will be payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The Refunding bonds are being issued to provide the City with funds which together with other legally available funds of the City, will be sufficient to refund $3,510,000 of the $3,905,000 principal amount of the outstanding Series 1984 Bonds of the City. To effect the refunding of the Series 1984 Bonds, the City entered into an Escrow Deposit Agreement (the "Escrow Deposit Agreement"), dated as of August 1, 1987, with the Boatmen's National Bank of St. Louis, as escrow agent ("Escrow Agent"). Pursuant to the Escrow Deposit Agreement, the Escrow Agent deposited the proceeds of the Bonds to be applied in the amount of $3,580,600 to the purchase of United States Treasury Securities (the "Escrowed Securities"). The principal amount of the Escrowed Securities, together with the interest income thereon, will be payable at such times and in such amounts, together with the monies held uninvested by the Escrow Agent, to pay, when and as due, the interest on the Bonds from November 1, 1987 through November 1, 1994, and to pay the principal of and redemption premium on the Series 1984 Bonds and may be applied only to such payment. The Escrow Deposit Agreement states that the Escrowed Securities (exclusive of investment earnings thereon) and the moneys held uninvested by the Escrow Agent are irrevocably pledged to the payment of the principal of and redemption premium on the Series 1984 Bonds and may be applied only to such payment. Proceeds from the 1994 Refunding Bonds will be used to retire the $3,580,000 outstanding principal of the 1987 Refunding Bonds on November 1, 1994. 32 0 u City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 3,690,000 1993 General Obligation Refunding Bonds due as follows: Interest Year Ending Interest Principal Interest Paid From June 30 Rate Due Due Escrow Total 1995 $ 172,838 $ 86,419 $ 86,419 1996 5.50% $ 300,000 164,588 464,588 1997 3.75 320,000 150,338 470,338 1998 4.00 330,000 137,738 467,738 1999 4.25 345,000 123,806 468,806 2000 _ 4.50 355,000 108,488 463,488 2001 4.70 370,000 91,805 461,805 2002 4.90 390,000 73,555 463,555 2003 5.00 405,000 53,875 458,875 2004 5.00 425,000 33,125 458,125 2006 5.00 450.000 11,250 461,250 $ 3,690,000 $ 1,121,406 $86,419 $ 4,724,987 Principal payments are made annually on November 1, and interest payments are made semi-annually on May 1 and November 1. On April 20 1993 the City Pe of Ca Girardeau issued $3,690,000 of General Obligation Refunding Bonds Series 1993 with interest rates varying from 3.75% to 5.50%. The refunding bonds constitute general obligations of the City and will be payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The refunding bonds are being issued to provide the City with funds which together with other legally available funds of the City, will be used to refund $3,580,000 outstanding principal amount of General Obligation Refunding Bonds, Series 1987, of the City and pay the costs of issuance of the bonds. To effect the refunding of the Series 1987 Bonds, the City entered into an Escrow Trust Agreement (the "Escrow Trust Agreement"), dated as of April 1, 1993, with Capital Bank of Cape Girardeau County, Cape Girardeau, Missouri, as escrow agent (the "Escrow Agent'). Pursuant to the Escrow Trust Agreement, the City deposited $3,619,331 of the proceeds of the Bonds and $91,200 from the debt service fund for the Series 1987 Bonds to purchase United States Government Obligations in book entry form (the "Escrowed Securities"). r: 1 33 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued The principal amount of the Escrowed Securities, together with the interest income thereon, will be payable at such times and in such amounts, together with the moneys held uninvested by the Escrow Agent, to pay, when and as due, the interest on the Bonds to and including the Cross -Over Date and the principal of and redemption premium on the Series 1987 Bonds being called for redemption on the Cross -Over Date. The Escrow Trust Agreement provides that the Escrowed Securities and the moneys held uninvested by the Escrow Agent are irrevocably pledged to the payment of the interest on the Bonds to and including November 1, 1994, and the principal of and redemption premium on the Series 1987 Bonds to be redeemed on November 1, 1994, and may be applied only to such payments.. $ 1,300,000 Series 1993 Sewerage System Revenue Bonds due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 3.600% $ 75,000 $ 63,231 $ 138,231 1996 4.000 80,000 60,531 140,531 1997 4.200 85,000 57,331 142,331 1998 4.400 90,000 53,761 143,761 1999 4.600 95,000 49,801 144,801 2000 4.800 100,000 45,431 145,431 2001 5.000 110,000 40,631 150,631 2002 5.125 115,000 35,131 150,131 2003 5.250 120,000 29,238 149,238 2004 5.300 135,000 22,938 157,938 2005 5.350 140,000 15,783 155,783 2006 5.350 155,000 8,293 163,293 $ 1,300,000 482,100 $ 1,782,100 These bonds are dated September 1, 1993. The proceeds of the bond issue were used to defease (in - substance) the $1,170,000 1986 Sewerage System Revenue Bonds. Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1, and September 1. 34 u 0 W CI D D City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG TERM OBLIGATIONS - Continued $ 11,815,000 Waterworks System Revenue Bonds Series 1992 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 4.75% $ 115,000 $ 759,283 $ 874,283 1996 5.00 145,000 753,820 898,820 1997 5.25 185,000 746,570 931,570 1998 5.50 225,000 736,857 961,857 1999 5.70 275,000 724,483 999,483 2000 5.90 320,000 708,807 1,028,807 2001 _ 6.00 370,000 689,928 1,059,928 2002 6.10 425,000 667,727 1,092,727 2003 7.45 485,000 641,803 1,126,803 2004 7.45 555,000 605,670 1,160,670 2005 7.45 625,000 564,322 1,189,322 2006 6.40 705,000 517,760 1,222,760 2007 6.40 790,000 472,640 1,262,640 2008 6.40 885,000 422,080 1,307,080 2009 6.40 985,000 365,440 1,350,440 2010 6.40 1,095,000 302,400 1,397,400 2011 6.40 1,210,000 232,320 1,442,320 2012 6.40 2,420,000 154,880 2,574,880 $ 11,815,000 $ 10,066,790 $ 21,881,790 These bonds are dated April 15, 1992. The proceeds of the bond issue were used to purchase, extend and improve the water system serving the City. The purchase of the water system occurred on June 3, 1992. Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1 and September 1. 35 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 2,500,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1991 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due- Total 1995 5.400% $ 65,000 $ 166,374 $ 231,374 1996 5.600 70,000 162,864 232,864 1997 5.800 75,000 158,944 233,944 1998 6.000 80,000 154,594 234,594 1999 6.200 80,000 149,794 229,794 2000 6.300 85,000 144,834 229,834 2001 6.400 95,000 139,479 234,479 2002 6.500 100,000 133,399 233,399 2003 6.600 105,000 126,899 231,899 2004 6.875 110,000 119,969 229,969 2005 6.875 120,000 112,406 232,406 2006 6.875 130,000 104,156 234,156 2007 6.875 135,000 95,219 230,219 2008 6.875 145,000 85,937 230,937 2009 6.875 155,000 75,969 230,969 2010 6.875 165,000 65,312 230,312 2011 6.875 175,000 53,969 228,969 2012 6.875 190,000 41,937 231,937 2013 6.875 205,000 28,875 233,875 2014 6.875 215,000 14,781 229,781 $ 2,500,000 $2,135,711 $ 4,635,711 These bonds are dated December 1, 1991. The proceeds of the bond issue will be used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on June 1, and interest payments are made semi-annually on June 1 and December 1. The interest due on the 1991 Sewer System Revenue Bonds will be subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the Department of Natural Resources will deposit an amount equal to approximately 51.907% of the reimbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be $1,250,000. As bonds are paid off 50% of the amount of bonds paid off will be repaid to the Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 1994 was $673,882. The reserve fund yields 6.71%. 36 a m m R W City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 500,000 Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1993 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 $ 24,683 $ 24,683 1996 3.400% $ 15,000 24,428 39,428 1997 3.700 17,000 23,858 40,858 1998 3.900 17,000 23,212 40,212 1999 4.100 18,000 22,511 40,511 2000 4.250 19,000 21,739 40,739 2001 -- 4.400 19,000 20,917 39,917 2002 4.550 20,000 20,044 40,044 2003 4.700 21,000 19,096 40,096 2004 4,800 22,000 18,074 40,074 2005 4,900 23,000 16,983 39,983 2006 5,000 24,000 15,819 39,819 2007 5.100 25,000 14,582 39,582 2008 5.200 27,000 13,242 40,242 2009 5.250 28,000 11,805 39,805 2010 5.400 30,000 10,260 40,260 2011 5.400 31,000 8,613 39,613 2012 5.400 33,000 6,885 39,885 2013 5.400 35,000 5,049 40,049 2014 5.400 37,000 3,106 40,106 2015 5.400 39,000 1,053 40,053 $500,000 L325,.959 825 959 These bonds are dated August 1, 1993. The proceeds of the bond issue will be used to extend and improve the existing sewerage facilities serving the City. Principal payments are made annually on March 1, and interest payments are made semi-annually on March ■ 1 and September 1. r. The interest due on the 1993 Sewer System Revenue Bonds will be subsidized by interest earnings on a reserve fund held by the bond issue's trustee. As the City is reimbursed for sewer project expenditures from the construction funds held by the trustee, the Department of Natural Resources will deposit an amount equal to approximately 70.00% of the reimbursement into the reserve fund. The maximum amount of funds that will be advanced to the reserve fund will be $350,000. As bonds are paid off, 70% of the amount of bonds paid off will be repaid to the Department of Natural Resources out of the reserve fund. The balance of the reserve fund at June 30, 1994 was $64,881. The reserve fund yields 5.15%. 37 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 375,000 Building and Equipment Leasehold Revenue Bonds, Series 1988 due as follows: Year Ending Interest Principal June 30 Rate Due 1995 6.60% $375,000 375 000 Interest Due Total 12,375 $387,375 12,375 387 375 The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The CGPFA has entered into a Lease Purchase Agreement with the City of Cape Girardeau, Missouri. Principal and interest will be paid by CGPFA from rental and other receipts from the City. The purpose of the bonds is to purchase the existing central fire station of the City, construct and equip a new fire station, construct and equip a solid waste transfer station and acquire certain other furnishings and equipment. The bond principal is allocated as follows: $105,783 - Sewer Fund; $116,561 - Solid Waste Fund; and $152,656 - General Long -Term Debt Account Group. Principal payments are made annually on September 1, and interest payments are made semi-annually on March 1, and September 1. Additional principal of $1,775,000, originally payable through the fiscal years ending June 30, 1996 to 1999, was defeased via an in -substance defeasance during this fiscal year. $ 380,000 Building and Equipment Leasehold Revenue Bonds (Street and Sewer Improvement Project), Series 1989 due as follows: Year Ending Interest Principal Interest March 1 Rate Due Due 1995 6.85% 380D00 $26,030 380 000 $26,030 Total $406,030 L496-,030 The 1989 bonds were issued pursuant to an agreement in the original indenture, $3,720,000 Building and Equipment Leasehold Bonds, Series 1988. The 1989 bonds and interest are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The CGPFA has entered into a Lease Purchase agreement with the City of Cape Girardeau, Missouri. Principal and interest payments will be paid by CGPFA from rental and other receipts from the City. The purpose of the bonds is to construct and improve certain streets located in the City and improve the sewerage system. 38 J 0 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATION - Continued The bond principal is allocated as follows: $190,000 - Sewer Fund and $190,000 - General Long -Term Debt Account Group. Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1, and September 1. Additional principal of $3,260,000, originally payable through the fiscal years ending June 30, 1996 to 2003, was defeased via an in -substance defeasance during this fiscal year. $ 1 805 000 Building and Equipment Leasehold Bonds, Series 1990 A and B. due as follows: $ 875,000 Series 1990A Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 6.15% $ 425,000 $ 54,263 $ 479,263 1996 6.25 450,000 28,125 478,125 $875,000 LL2,388 957 388 $ 930,000 Series 1990B Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 6.30% $ 50,000 $ 63,043 $ 113,043 1996 6.40 60,000 59,893 119,893 1997 6.50 65,000 56,052 121,052 1998 6.60 65,000 51,828 116,828 1999 6.70 70,000 47,537 117,537 2000 6.75 75,000 42,847 117,847 2001 6.80 80,000 37,785 117,785 2002 6.85 80,000 32,345 112,345 2003 6.90 85,000 26,865 111,865 2004 7.00 90,000 21,000 111,000 2005 7.00 210,000 14,700 224,700 930 $453,895 $ 1,383,895 The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The 39 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued CGPFA has entered into a Lease Purchase Agreement with the City of Cape Girardeau, Missouri. Principal and interest will be paid by the CGPFA from rental and other receipts from the City. The purpose of the 1990A Series bonds is to acquire, construct, improve, widen, repair, and enlarge creek channels and a dry detention reservoir for the purpose of flood control. The purpose of the 1990B Series bonds is to acquire, construct, improve, and repair the City's airport facilities. The bond liability for the Series 1990A bonds is recorded in the General Long -Term Debt Account Group. Along with the reclassification of the Airport Fund from an Enterprise Fund to a Special Revenue Fund, the bond liability for the Series 1990B bonds were transferred to the General Long -Term Debt Account Group. Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1, and Septeml3er 1. Additional principal of $2,620,000, originally payable through the fiscal years ending June ,30, 1997 to 2000, was defeased via an in -substance defeasance during this fiscal year. $ 955,000 Building and Leasehold Revenue Bonds, Series 1991 Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 5.55% $ 465,000 $ 53,738 $ 518,738 1996 5.70 490,000 27.930 517,930 955 000 81,668 1036 668 The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The CGPFA has entered into a Lease Purchase Agreement with the City of Cape Girardeau, Missouri. Principal and interest will be paid by the CGPFA from rental and other receipts from the City. The purpose of the 1991 bonds is to acquire, construct, improve, widen, repair and enlarge creek channels and a dry detention reservoir for the purpose of flood control. The bond liability for these bonds is recorded in the General Long -Term Debt Account Group. Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1, and September 1. Additional principal of $2,755,000 originally payable through the fiscal years ending June 30, 1997 to 2000, was defeased via an in -substance defeasance during this fiscal year. 40 m 0 C L City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued 13,755,000 Building and Equipment Leasehold Refunding & Improvement Revenue Bonds (Capital Improvements Project), Series 1993 due as follows: Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 3.300% $ 365,000 $ 581,750 $ 946,750 1996 3.700 1,165,000 569,705 1,734,705 1997 4.000 2,195,000 526,600 2,721,600 1998 4.100 2,265,000 438,800 2,703,800 1999 4.250 2,340,000 345,935 2,685,935 2000 4.400 2,915,000 246,485 3,161,485 2001 4.500 705,000 118,225 823,225 2002 4.625 720,000 86,500 806,500 2003 4.750 420,000 53,200 473,200 2004 5.000 185,000 33,250 218,250 2005 5.000 480,000 24,000 504,000 $ 13,7 $ 3.024,450 $ 16.7791450 IR The bonds are obligations of the Cape Girardeau (Missouri) Public Facilities Authority (CGPFA). The CGPFA has entered into a Lease Purchase Agreement with the City of Cape Girardeau, Missouri. Principal and interest will be paid by CGPFA from rental and other receipts from the City. The purpose of the bonds is to (1) pay the costs of various street improvements for the City, (2) defease $10,410,000 outstanding principal amount of Building and Equipment Leasehold Revenue Bonds of the Authority and (3) pay the costs of issuance of the Series 1993 Bonds. The bond principal is allocated as follows: $2,891,194 - Sewer Fund; $562,264 - Solid Waste Fund; and $10,301,542 - General Long-term Debt Account Group. Principal payments are made annually on March 1 and interest payments are made semi-annually on March 1 and September 1. Fi Fi, u 1 41 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued $ 3,545,000 Certificates of Participation (Convention and Visitors Recreation Facilities Project), Series 1993. Year Ending Interest Principal Interest June 30 Rate Due Due Total 1995 3.500% $ 85,000 $ 170,943 $ 255,943 1996 3.900 135,000 167,968 302,968 1997 4.100 170,000 162,703- 332,703 1998 4.300 215,000 155,733 370,733 1999 4.500 255,000 146,488 401,488 2000 4.700 295,000 135,013 430,013 2001 4.800 345,000 121,148 466,148 2002 5.000 400,000 104,588 504,588 2003 5.000 455,000 84,588 539,588 2004 5.125 510,000 61,838 571,838 2005 5.250 680.000 35,700 715,700 $ 3,545,000 1,346,710 $ 4,891,710 The certificates are obligations of the City of Cape Girardeau, Missouri. Under a Lease Purchase Agreement between the City and the Cape Girardeau (Missouri) Public Facility Authority (the "Corporation"), the Corporation will assign the right to receive rental and other receipts from the City to Capital Bank of Cape Girardeau County ( the "Trustee"). The purpose of the 1993 Series certificates is for the acquisition, construction, furnishing, and equipping of a convention and recreational center, softball and soccer fields, and improvements to the City Hall. The bond liability for the Series 1993 certificates is recorded in the General Long -Term Debt Account Group. Principal payments are made annually on April 1, and interest payments are made semi-annually on April 1, and October 1. u u 42 U n City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued The annual requirements to amortize all debt outstanding as of June 30, 1994 including total interest payments of $19,375,963 are as follows: General Year Ending Obligation' Revenue June 30 Bonds Bonds Leasehold Certificates Revenue of Bonds Participation Total 1995 $ 7,684,319 $ 1,268,571 $ 2,851,199 $ 255,943 $ 12,060,032 1996 464,588 1,311,643 2,850,653 302,968 4,929,852 1997 470,338 1,348,703 2,842,652 332,703 4,994,396 1998 467,738 1,380,424 2,820,628 370,733 5,039,523 1999 _ 468,806 1,414,589 2,803,472 401,488 5,088,355 2000 463,488 1,444,811 3,279,332 430,013 5,617,644 2001 461,805 1,484,955 941,010 466,148 3,353,918 2002 463,555 1,516,301 918,845 504,588 3,403,289 2003 458,875 1,548,036 585,065 539,588 3,131,564 2004 458,125 1,588,651 329,250 571,838 2,947,864 2005 461,250 1,617,494 728,700 715,700 3,523,144 2006 - 1,660,028 - - 1,660,028 2007 - 1,532,441 - - 1,532,441 2008 - 1,578,259 - - 1,578,259 2009 - 1,621,214 - - 1,621,214 2010 - 1,667,972 - - 1,667,972 2011 - 1,710,902 - - 1,710,902 2012 - 2,846,702 - - 2,846,702 2013 - 273,924 - - 273,924 2014 - 269,887 - - 269,887 2015 - 40,053 - - 40,053 $ 12,322,887 $ 29,125,560 $ 20,950,806 $ 4,891,710 $ 67,290,963 $269,498 is available in the Debt Service Fund to service the general obligation bonds. This does not include the $3,579,655 available to apply to the refunding of the 1984 Public Building Bonds or the $3,654,700 available to apply to the refunding of the 1987 General Obligation Refunding Bonds. In the Sewer Fund, $120,077 cash is available to service the Sewerage Revenue Bonds. The debt service available to retire the Leasehold Revenue Bonds is shown in the various funds as follows. Sewer Fund $ 455,184 Solid Waste Fund 125,129 Debt Service Fund 1,860,285 Total $ 2,440,598 43 City of Cape Girardeau, Missouri, NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE E - LONG-TERM OBLIGATIONS - Continued In the General Long -Term Debt Account Group, $403,057 is available to service the Certificates of Participation. Included in restricted cash on the balance sheet is $2,379,743 which is the balance in the various project accounts which represent incomplete projects at June 30, 1994. If the project funds are not used, the remaining balance can be applied against debt. The City is in compliance with all significant limitations and restrictions contained in the various bond indentures. During the fiscal year ended June 30, 1994, the City defeased (in -substance) $10,410,000 of CGPFA Bonds and $1,170,000 of Revenue Bonds. As of June 30, 1994, defeased debt still outstanding consisted of $4,453,457 in the Enterprise Funds and $7,076,543 in the General Long-term Debt Account Group (GLTDAG). Pursuant to GAAP, defeased debt is not shown on the face of the balance sheets. The cash flow required to service the old debt and that required to service the new debt and complete the refunding are as follows: The economic gain or loss from the defeasance of this debt is calculated as follows: Present Value of Debt Service Enterprise Cash Flow Requirements of: Funds GLTDAG Total Old Debt $ 6,393,595 $ 9,497,594 $ 15,891,189 New Debt 6,069,851 9,557,303 15,627,154 Difference $ 323,744 $ (59,709) $ 264,035 The economic gain or loss from the defeasance of this debt is calculated as follows: Present Value of Debt Service Enterprise Requirements: Funds GLTDAG Total Old Debt $ 5,058,886 $ 7,704,000 $ 12,762,886 New Debt 4,754,861 7,738,646 12,493,507 Economic Gain (Loss) $ 304,025 $ (34,646) $ 269,379 NOTE F - CAPITAL LEASE OBLIGATIONS In prior years, the City acquired certain equipment under capital leases. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are amortized over their estimated productive lives. Current amortization expense is included in depreciation expense. No capital lease obligation existed as of June 30, 1994. 44 m m City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE G - DEFICIT FUND BALANCES/RETAINED EARNINGS The following individual funds have deficit fund balances/retained earnings at June 30, 1994. Enterprise Funds Solid Waste Fund $ 2,831,069 Golf Course Fund 95,315 Special Revenue Funds Airport 3,261 Parks & Recreation 85,594 NOTE H - PENSION PLAN 1. Plan Description The City of Cape Girardeau contributes to the Missouri Local Government Employees Retirement System (LAGERS), an agent multiple -employer public employee retirement system that acts as a common investment and administrative agent for local government entities in Missouri. LAGERS was created and is governed by state statute. As such, it is the system's responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue code Section 401A and it is tax exempt. All full-time employees are eligible to participate in LAGERS. Benefits vest after five 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 then in effect. The allowance is equal to a benefit factor multiplied by the final average salary multiplied by the number of years of service. LAGERS also provides early retirement, death and disability benefits. If the City of Cape Girardeau participates under the contributory plan, each member contributes 4% of gross salary. The employer is required to contribute the remaining amounts necessary to finance the coverage of its employees using the actuarial basis specified by state statute. 2. Funding Status and Progress WN The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to (i) help users assess the plan's funding status on a going - concern basis, (ii) assess progress being made in accumulating sufficient assets to pay benefits when due, and (iii) allow for comparisons among public employee retirement plans. The measure is independent of the actuarial funding method used to determine contributions to the plan. The pension benefit obligation was determined as part of an actuarial valuation of the plan as of February 28, 1994. Significant actuarial assumptions used in determining the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 7.0% per year compounded 1 45 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE H - PENSION PLAN - Continued 2. Funding Status and Progress - Continued annually, before retirement and 4.0% per year, compounded annually, after retirement, (b) projected salary increases of 4% per year compounded annually, attributable to inflation, (c) additional projected salary increases ranging from 0.0% to 3.4% per year, depending on age, attributable to seniority/merit, and (d) pre- and post-retirement mortality based on the 1984 Group Annuity Mortality Table set back no years for men and 6 years for women. At February 28, 1994, the assets in excess of the pension benefit obligation were $58,212, determined as follows: Pension Benefit Obligation: (Employei Accumulation Fund and Member Deposit Fund only) Retirees and beneficiaries currently receiving benefits Note: The obligation for the retirees and beneficiaries has been transferred to the PERS as a whole. Terminated employees not yet receiving benefits Current employees -- Accumulated employee contributions including allocated investment income Employer financed - Vested Employer financed - Non -vested Total Pension Benefit Obligation Net Assets Available for Benefits; at Cost: (Market value of assets: $9,381,446) Assets in Excess of the Pension Benefit Obligation 3. Funding Policy 290,712 30,205 8,082,420 802,049 9,205,386 9,263.598 The City of Cape Girardeau is obligated by state statute to make all required contributions to the plan. The required contributions are actuarially determined using the individual entry -age actuarial cost method. The prior service costs are amortized over an initial amortization period of 40 years, and the amount of the additional unfunded obligations created due to increases in plan benefits over a period of 30 years. Any refunds of member contributions as elected by the City of Cape Girardeau are amortized over a 15 year period. The significant actuarial assumptions used to determine the actuarially determined employer contribution requirements are the same as those used to compute the pension benefit obligation. The City of Cape Girardeau's contribution for 1994 of $1,902,799 was made in accordance with 46 m 0 D C r. City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE H - PENSION PLAN - Continued 3. Funding Policy - Continued actuarially determined contribution requirements determined through an actuarial valuation. This amount consisted of (a) normal cost which is 6.3 % of covered payroll for general employee classifications, 6.1 % for police employee classifications, and 10.3% for fire employee classifications and (b) amortization of prior service costs which is .60% of covered payroll for general employee classifications, 1.1% for police employee classifications, and 5% for fire employee classifications. The value of vested benefits was not determined in connection. with the actuarial valuation of the plan. At February 28, 1994 (the date of the most recent actuarial valuation), the total unfunded liability for benefits accrued was $2,020,624. 4. Trend Information Historical information about the City's participation in the Missouri Local Government Employees Retirement System is presented herewith as required supplementary information. This information is intended to help users assess the City's retirement plan's funding status on a going -concern basis, assess progress being made in accumulating assets to pay benefits when due, and allow for comparisons with other public employees retirement system (PERS). Following disclosure requirements of GASB 5, only eight years of trend information for the City of Cape Girardeau is available in the following reporting format. (1) (2) (3) (4) (5) (6) (7) (153,664) 02/29/92 8,065,151 7,848,941 103 (216,210) Unfunded 9% 7,388,088 - 26%* PBO Employer Pension as a% of Contributions Net Assets Benefit Percent Unfunded Annual Covered as a % Valuation Available Obligation Funded PBO Covered Payroll of Covered Date For Benefits (PBO) (1)!(2) (2)-(1) Payroll (4)/(5) Payroll 02/28/87 $ 5,276,196 $ 5,595,774 94 $ 319,578 02/28/88 6,218,632 6,188,416 100 (30,216) 02/28/89 5,577,814 5,190,355 107 (387,459) 02/28/90 6,402,470 5,792,412 111 (610,058) 02/28/91 7,389,133 7,235,469 102 (153,664) 02/29/92 8,065,151 7,848,941 103 (216,210) 02/29/93 8,089,425 8,048,251 101 ( 41,174) 02/28/94 9,263,598 9,205,386 101 ( 58,212) * Includes return of employees' prior contributions. The City's total payroll for fiscal year 1994 is $8,221,649. 1 47 $ 4,968,360 6% 6% 4,970,027 - 6% 5,291,039 - 8% 5,542,581 - 8% 6,102,647 - 9% 6,449,622 - 9% 6,624,319 - 9% 7,388,088 - 26%* City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE H - PENSION PLAN - Continued 4. Trend Information - Continued The above assets and pension benefit obligations do not include the assets and present value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. All current retiree assets and present values are excluded above, beginning 1989. Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides_ one indication of the plan's funded status on a going -concern basis. Analysis of the percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the plan. The unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the progress being made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the plan. E Anes By Type Fiscal Year Benefits Refunds Total 6/30/87 $ 227,472 Revenues By Source 6/30/88 Fiscal Member Employer Investment 261,462 Year Contributions Contributions Income Total 6/30/87 $ 197,541 $ 303,803 $ 778,789 $ 1,280,133 6/30/88 203,439 308,554 424,987 936,980 6/30/89 - 435,168 512,051 947,219 6/30/90 - 425,627 712,292 1,137,919 6/30/91 - 550,388 506,632 1,057,020 6/30/92 - 579,287 639,449 1,218,736 6/30/93 - 574,918 936,993 1,511,911 6/30/94 - 1,902,799 765,960 2,668,759 E Anes By Type Fiscal Year Benefits Refunds Total 6/30/87 $ 227,472 $ 37,921 $ 265,393 6/30/88 265,824 59,276 325,100 6/30/89 261,462 74,345 335,807 6/30/90 237,267 37,860 275,127 6/30/91 241,459 21,302 262,761 6/30/92 286,652 18,721 305,373 6/30/93 375,987 24,043 400,030 6/30/94 381,536 1,463,817 1,845,353 48 m I It D r. L� City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE H - PENSION PLAN - Continued 4. Trend Information - Continued Ten year historical trend information for the Missouri Local Government Employees Retirement System (LAGERS) presenting the progress in accumulating sufficient assets to pay benefits when due is presented in the LAGERS June 30, 1994 comprehensive annual financial report. NOTE I - INTEREST EXPENSE Interest cost, including handling charges, totaling $3,240,286, excluding $68,585 of interfund interest, was incurred during the year ended June 30, 1994. No interest cost was capitalized as part of the cost of assets .ponstructed during the period. NOTE J - INTERFUND RECEIVABLES AND PAYABLES The following is a summary of the amounts due from and to other funds. NOTE K - DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All plan assets 49 Due to Due from General Fund $ 2,048,276 $ - Sewer Fund - 337,500 Solid Waste Fund - 950,000 Library Fund - 75,000 Golf Course Fund - 435,000 Airport Fund - 45,315 CDGB Grant - 52,245 Parks & Recreation - 23,781 Motor Fuel Tax - 1,699 Street Improvements - 114,711 Park Improvements - 13,025 $2,048,276 2 048 76 NOTE K - DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All plan assets 49 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE K - DEFERRED COMPENSATION PLAN - Continued including all amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. The City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. NOTE L - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City maintains four enterprise funds which provide sewer, water, solid waste, and golf services. Segment information for the year ended June 30, 1994 was as follows: Current Capital Contributions Transfers Property, Plant and Equipment Additions Deletions Net Woridng Capital Total Assets Bonds and Other Long - Term Liabilities Payable from operating revenues Payable from other 394,901 Sewer Water Solid Waste Golf Course Total 100,784 Fund Fund Fund Fund Enterprise Operating Revenues $ 2,314,195 $ 3,497,963 $ 2,271,471 $ 428,284 $ 8,511,912 Depreciation 661,023 288,022 253,604 35,641 1,238,290 Operating Grants - - - - - Op=tmg Income (Loss) 587,245 653,424 112,247 63,035 1,415,950 Operating transfers in - - - - - Operating transfers out - - - - - Net Income (Loss) 341,595 29,430 71,568 50,623 493,216 Current Capital Contributions Transfers Property, Plant and Equipment Additions Deletions Net Woridng Capital Total Assets Bonds and Other Long - Term Liabilities Payable from operating revenues Payable from other 394,901 174,023 7,109 - 576,033 952,159 587,105 100,784 45,050 1,685,098 - - (159,369) - (159,369) 3,234,596 2,712,599 (850,031) (433,127) 4,664,037 22,659,930 12,805,832 1,613,565 369,133 37,448,460 7,270,452 sources - Total Equity $ 14,725,384 11,713,331 $ 287,094 665,187 $(2,543,790) 19,648,970 $ (95,315) $ 12,373,373 R 50 U City 1� of Ca Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE M - RESERVATION OF FUND EQUITY F " At June 30, 1994, the City had reserved its fund equity as follows: General Fund Reserved for prepaid expenses $ 58,879 Reserved for advances 1,797,500 Reserved for mausoleum maintenance 49,896 Reserved for police projects 37,434 Reserved for encumbrances 111,087 $2,054,796 Special Revenue Funds Convention/Tourism Fund Reserved for encumbrances $ 3,198 Airport Fund Reserved for prepaid expenses 9,638 Reserved for encumbrances 6,921 Parks and Recreation Fund Reserved for prepaid expenses 473 Reserved for encumbrances 654 Health Fund Reserved for encumbrances 525 21,,409 Debt Service Fund Reserved for debt service $9,767.195 Capital Projects Funds General Capital Improvement Fund Reserved for debt service $ 204,483 Reserved for bond capital expenditures Reserved for encumbrances 2,560,315 214,997 Corps Flood Control Fund Reserved for debt service Reserved for bond capital expenditures 396,008 1,244,899 Street Improvements Fund Reserved for debt service 139,230 Reserved for bond capital expenditures 1,737,581 Reserved for encumbrances 292,035 FAU Street Grants Fund Reserved for encumbrances 7,780 Community Development Block Grant Fund Reserved for economic development loan repayments 75,706 Reserved for encumbrances 33,300 $ 6,906,334 1 51 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE N - COMPOSITION OF RESTRICTED ASSETS At June 30, 1994, the City has restricted assets in its Enterprise funds as follows: Revenue Bond Bond Sinking and Construction Reserve Fund Total Sewer Fund $ 1,532,888 $ 765,208 $ 2,298,096 Water Fund 846,854 1,210,589 2,057,443 Solid Waste Fund - 125,129 125,129 $2,379,742 2 100 926 $4,480,668 NOTE O - LANDFILL CLOSURE AND POSTCLOSURE CARE COST State and federal laws and regulations require the City to place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and postclosure care costs is $2,132,227 as of June 30, 1994, which is based on 100% usage (filled) of the landfill. The estimated total current cost of the landfill closure and postclosure care $(2,410,600) is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 1994. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The City of Cape Girardeau has used the option of a Contract of Obligation as the financial assurance instrument for the landfill. The City has recently (after June 30, 1994) issued bonds from which the proceeds will be used to pay the closure costs. NOTE P - RISK MANAGEMENT The City has established self-insurance plans for employees' health insurance and workers' compensation. Both of these are accounted for in the internal service fund. For each plan, the City is substantially self- insured, but the City is insured against very large losses. The City has also hired an administrator for each plan that handles claim payments and other duties. The workers' compensation plan was established in June 1993. R R 52 U City 1� of Ca Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE P - RISK MANAGEMENT - Continued In prior years, the City was substantially insured with respect to workers' compensation. However, the workers' compensation claims paid in recent years have been very favorable as compared to the premiums paid by the City. The City management, therefore, anticipate a savings by converting to the self-insured plan. Claims liability is estimated using data supplied by the administrator. The claims activity during the year is summarized as follows: CLAIMS LIABILITIES RECONCILIATION Health Workers' Insurance Compensation Total Balance, July 1, 1993 $ 128,129 $ 587 $ 128,716 Provision for Incurred Claims 644,553 285,667 930,220 Payments of Claims62( 6,895)20( 8.032) (834,927) Balance, June 30, 1994 L145.,787 78,222 224 009 NOTE Q - CONCENTRATION OF CREDIT RISK/BAD DEBT ALLOWANCE The City has uncollateralized utility accounts receivable generated within a limited geographical region primarily consisting of its city limits. The City also has taxes, special assessments, and user fees receivable which are concentrated among its citizens. Some of these items attach as liens against real and personal property. The maximum accounting loss is the amount shown as utility charges receivable on the Combined Balance Sheet. At June 30, 1994, utility receivables totaled $1,604,808. On the financial statements, the utility receivables are shown net of the allowance for doubtful accounts of $475,664. This results in net utility receivable of $1,129,144. NOTE R - COMNIITMENTS 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. 1 53 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE R - COMNMMENTS AND CONTINGENCIES - Continued 2. Grant Audit The City receives Federal and State Grants for specific purposes that are subject to review and audit by Federal and State agencies. Such audits could result in a request for reimbursement by the Federal and State for expenditures disallowed under the terms and conditions of the appropriate agency. The opinion of City management, such disallowances, if any, will not be significant. 3. Construction Commitments As of June 30, 1994, the City had construction commitments outstanding of $1,270,374. 4. Encumbrances As of June 30, 1994, the City had encumbrances outstanding of $697,832. NOTE S - SUBSEQUENT EVENTS The City issued additional debt after June 30, 1994. As of the date of these financial statements, the City has issued $3,530,000 in additional bonds, of which $2,720,000 was for the purpose of financing water and sewer extensions and of which $810,000 was for the purpose of financing landfill closure costs. NOTE T - CHANGE IN REPORTING ENTITY As described in Note A 1, the Cape Girardeau Public Library was changed from a Special Revenue Fund to an Agency Fund for the June 30, 1994 financial statements. The effect of this change in reporting entity was to reduce the Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses of the Special Revenue Funds by approximately $25,000. NOTE U - PRIOR PERIOD ADJUSTMENTS Beginning retained earnings was reduced $9,428,918 and $2,661,744 in the sewer and solid waste funds respectively. Part of the adjustment to the sewer fund's retained earnings resulted from residual equity transfers of fixed assets, long-term debt, and cash from other governmental fund types or account groups in the year 54 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE U - PRIOR PERIOD ADJUSTMENTS - Continued ending June 30, 1987. These transfers were incorrectly shown as adjustments to retained earnings. Book balance of fixed assets transferred was $9,221,379. The amount of long-term debt transferred was $1,442,046. The amount of cash received from a capital projects fund was $1,149,585. The net of these three transfers was $8,928,918. The remaining $500,000 adjustment to the sewer fund's retained earnings resulted from a $500,000 capital grant shown as operating revenue instead of contributed capital in the year ending June 30, 1987. The adjustment to the solid waste fund's retained earnings resulted_ from transfer of assets at book value to establish the fund on July 1, 1986 that was incorrectly shown as an adjustment to retained earnings and a reclassification of estimated landfill closure expenses allocable to previous years back to the year ending Jme 30, 1993. The amounts of these adjustments were $280,170 and $2,381,574 respectively. NOTE V - RESIDUAL EQUITY TRANSFERS r.: 1 55 The Airport Fund was previously accounted for as an Enterprise Fund. However, due to the application of criteria for determining fund classification, the Airport Fund was transferred for a Special Revenue Fund as of July 1, 1993. The assets, liabilities, and equity of the Airport Enterprise Fund were transferred to the Special Revenue, Capital Projects, and Debt Service Funds, General Long-term Debt Account Group, and General Fixed Assets Account Group. The reconciliation of the Airport Fund is as follows: Residual Equity Transfers Out: Airport Enterprise Fund $ 1,687,897 Residual Equity Transfers In: Airport Special Revenue Fund (8,371) Debt Service Fund 91,510 General Capital Improvement Capital Project Fund 72,488 General Fixed Assets Account Group General Long-term Debt Account Group 3,520,095 (1,082,556) Issuance costs of debt not transferred 28,566 Contributed Capital (933.835) $1,687,897 r.: 1 55 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1994 NOTE V - RESIDUAL EQUITY 'TRANSFERS - Continued As described in Note Al, the Library Fund was reclassified from a Special Revenue Fund to an Agency Fund as of July 1, 1993. The assets, liabilities, and equity of the Library Special Revenue Fund and General Fixed Assets Account Group were transferred out and the appropriate assets and liabilities of the Library Agency Fund were transferred in. The residual equity transfers out of $175,025 of the Library Special Revenue Fund does not have a corresponding entry due to the Library Fund transfer to an agency fund classification. NOTE W - CONTRIBUTED CAPITAL The changes in the contributed capital accounts for the enterprise funds were as follows: Solid Sources Sewer Water Waste Total Beginning Balance, July 1, 1993 $ 4,822,138 $ 44,302 $ - $ 4,866,440 Prior period adjustment 9,428,918 - 280,170 9,709,088 14,251,056 44,302 280,170 14,575,528 Contributing Sources: Donated assets by developers 154,026 - - 154,026 Connection fees 200,200 174,023 - 374,223 State grants _ 40,675 - 7,109 47,784 Ending Balance, June 30, 1994 $ 14,645,957 218 325 287 279 $ 15,151,561 56 u irl I 0 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES 57 THIS PAGE INTENTIONALLY LEFT BLANK. GENERAL FUND The General Fund is used to account for those activities which are associated with the general government of the City accounting for all revenues and expenditures not accounted for in other funds. The major activities include public safety of police, fire, and municipal court, park maintenance, street department, development services of planning, inspection, and engineering, and administrative services of finance, human resources, city manager, and city attorney. The General Fund accounts for a separate tax levy of $0.32 per $100 assessed valuation. 59 THIS PAGE INTENTIONALLY LEFT BLANK. City of Cape Girardeau, Missouri GENERALFUND COMPARATIVE BALANCE SHEET JUNE 30, 1994 AND 1993 1994 1993 ASSETS Cash and cash equivalents $2,323,789 $1,030,190 Investments — — Receivables, net of allowances for doubtful receivables Real estate, personal property and merchant taxes 46,152 57,363 Sales tax 478,666 452,595 Franchise tax 11-124,578 1,104,824 Special assessments receivable 40,258 25,808 Interest receivable Other receivables 23,688 49,683 391 199,602 Intergovernmental receivables Grants receivable 28,353 28,690 Due from other funds 250,776 136,949 Advances to other funds 1,797,500 1,797,500 Inventories 137 145 Prepaid expenses 58,879 42,175 Total assets $6,222,459 $4,876,232 LIABILITIES AND FUND EQUITY Accounts payable $268,228 $168,469 Accrued liabilities Salaries, payroll taxes and benefits 228,992 223,193 Other liabilities 40,981 37,840 Due to other governments 9,390 14,234 Deferred revenue 914,024 522,239 Total liabilities 1,461,615 965,975 Fund Balance Reserved 2,054,796 1,919,883 Unreserved 2,706,048 1,990,374 ® 4,760,844 3,910,257 Total fund equity Total liabilities and fund equity $6,222,459 $4,876,232 61 City of Cape Girardeau, Missouri GENERALFUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 62 n m m VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes $8,764,809 $8,984,860 $220,051 Licenses and permits 756,404 741,703 (14,701) Intergovernmental 195,000 491,070 296,070 Charges for sevices 270,000 281,411 11,411 Interdepartmental services 430,739 461,434 30,695 Fines and forfeitures 565,000 577,296 12,296 Miscellaneous 50,000 119,366 69,366 Interest 86,300 120,182 33,882 TOTAL REVENUES 11,118,252 11,777,322 659,070 EXPENDITURES Current Administrative services City council 40,637 38,461 2,176 Human resources 141,564 141,552 12 City manager 191,844 168,941 22,903 City attorney' 160,982 154,257 6,725 Finance 311,672 295,597 16,075 Interdepartmemal 352,939 353,998 (1,059) Total administrative services 1,199,638 1,152,806 46,832 Development services Planning services 224,685 211,986 12,699 Inspection services 288,143 240,595 47,548 Engineering services 332,650 308,569 24,081 Community and economic development 80,000 86,057 (6,057) Public transportation 230,000 194,089 35,911 Total development services 1,155,478 1,041,296 114,182 Parks and recreation Park maintenance 694,096 617,588 76,508 Cemetery 104,486 93,115 11,371 Facility maintenance 113,803 107,698 6,105 Total parks and recreation 912,385 818,401 93,984 Public safety Municipal court 173,955 177,008 (3,053) Police 3,420,848 3,338,142 82,706 Fire 2,507232 2,529,351 (22,119) Total public safety 6,102,035 6,044,501 57,534 Public works Street 1,285,353 1,223,965 61,388 Stormwater 190,307 197,389 (7,082) Total public works 1,475,660 1,421,354 54,306 Contingency 203,570 232,876 (29,306) Debt Service Principal - - - Interest and fiscal charges - 1,133 (1,133) Total debt service - 1,133 (1,133) TOTAL EXPENDITURES 11,048,766 10,712,367 336,399 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 69,486 1,064,955 995,469 OTHER FINANCING SOURCES (USES) Operating transfers in 1,907,083 1,907,083 - Operating transfers out (2,253,271) (2,21.3,816) (15,545) Compensation for damages - 34,800 34,800 Proceeds from fixed assets 7,500 142 (7,358) Special assessments - 1,335 1,335 TOTAL OTHER FINANCING SOURCES (USES) (338,688) (325,456) 13,232 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (5269,202) 5739,499 51,008,701 62 n m m 1 SPECIAL REVENUE FUNDS Convention and Tourism Fund - to provide for the receipt and distribution of all funds in conjunction with the hotel-motel/restaurant tax. This is a gross receipt tax which provides for a rate of 3 % on motel rooms and I% on restaurants. ' Airport Fund - to account for the operation and maintenance of the regional airport facility in accordance with Federal Aviation Administration regulations. The airport provides a service facility for passenger traffic, private and commercial aircraft, and related business activities. Financing. is provided by user fees including hangar and terminal rentals and a FAA control tower grant. ' Downtown Business District Fund - to account for a separate tax levy on the downtown business district of $0.80 per $100 assessed valuation. A City Council appointed board makes ' recommendations for the expenditures of the revenues within the downtown business district for improvements, etc. ' Parks and Recreation Fund to account for the operation of all parks and recreation activities of the. City. This fund documents activities of two public pools, the A.C. Brase Arena multi- purpose building, and various recreation programs. Financing is provided by user fees and ' operating transfers. Health Fund - to account for limited funding for enforcement of health ordinances through: a separate tax levy of $0.05 per $100 assessed valuation. Weed abatement activities and demolitions of condemned structures are also funded through this fund. ' Motor Fuel Tax Fund - to account for the receipt of funds from state motor fuel taxes and related sales taxes. It provides for the construction of appropriate street and bridge projects and a portion of the cost of routine street maintenance. ' Capital Improvement Sales Tax Fund - to account for the receipt of 1/4 cent sales tax Caprt p P collections to fund major capital improvement projects for flood control. Flood Protection Fund - to account for flood control maintenance of the Cape LaCroix Creek. ' Vision 2004 Fund - to account for the development of a community strategic plan to aggressively lead the City into the year 2000. It represents community opinions to meet needs and desires for the future of the City such as community spirit, planning and zoning, business, ' and education. 63 0\ l.n City of Cape Girardeau, Missouri SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1994 (With Comparative Totals for June 30, 1993) Downtown Capital Convention/ Business Parks and Motor Improvement Flood Vision Totals Tourism AirDoft District Recreation Health Fuel Tax Sales Tax Protection 2000 6-30-94 6-30-93 ASSETS $20,359 $- $404,056 Cash and cash equivalents $2,187 $21,194 $12,748 Investments 250,000 - - Receivables, net of allowances for 749 - - doubtful receivables - 69,379 - Real estate tax - - 1,064 Personal property tax - - _ Hotel -motel tax receivable 29,016 - - Restaurant tax receivable 44,018 - - Motor fuel tax - 5,944 28,745 Motor vehicle license fees - - - Motor vehicle sales tax - - _ Other receivables 20,000 18,047 - Sales tax - - _ Interest receivable 4,953 - - Grants receivable - 41,817 _ Restricted Assets - - _ Prepaid expenses 201 9,638 - Due from other funds - - _ Advances to other funds - - _ Total assets $35Q 375 116,382 $13,812 LIABILITIES AND FUND EQUITY 85,594 116,907 395,687 Accounts payable $13,495 $18,241 $_ Accrued liabilities Salaries, payroll taxes and benefits 2,803 10,614 - Other liabilities - _ _ Due to other funds - 45,315 - Due to other governments - - - Advance from other funds - - _ Deferred revenue - 19,787 1,064 Total liabilities 16,298 93,957 1,064 Fund balance Reserved 3,198 16,559 - Unreserved 330,879 19,820 12,748 Total fund equity 334,077 3,261 12,748 Total liabilities and fund equity $350,375 $90,696 $13,812 $7,301 $20,359 $- $404,056 - 99,000 300,000 1,077,159 - 5,994 - - - 749 - - - - 69,379 - - - 13,269 - - - 18,860 - 87 27 - - - - - 119,911 - 373 5,944 28,745 473 7 861 12 502 407 452 1 629 671 $40,135 $1,964 $10,066 $28 29,370 1,428 - - 169 - - _ 23,781 - 1,699 - - 6,203 - 154,298 93,455 9,595 11,765 154,326 1,127 525 - - 86,721 116,382 395,687 1,475,545 85,594 116,907 395,687 1,475,545 $7,861 $126 502 5407,452 $1,629,871 $3,896 $3,101 $474,842 $1,040,565 - - 1,726,159 1,547,884 - - 7,058 6,873 - - 749 1,691 - - 29,016 26,351 - - 44,018 37,068 - - 69,379 56,419 - - 13,269 13,168 - - 18,860 15,934 - - 38,161 18,021 - - 119,911 112,894 - - 40,015 10,162 - - 41,817 46,224 120 10,432 12,692 3 896 $3,221 $2,633.686 $2,945.946 $- $540 $84,469 $188,695 - - 44,215 29,575 - - 169 182 - - 70,795 48,171 - - 181,352 77,500 - 540 381,000 344,123 - - 21,409 500 3,896 2,681 2,231,277 2,601,323 A896 2,681 2,252,686 2,601,823 53.896 $3,221 $2,633,686 $2,945,946 REVENUES Taxes Intergovernmental Charges for servic es Fines and forfeitures Miscellaneous Interest TOTAL REVENUES EXPENDITURES Current Administrative services Development services Parks and recreation Public safety Public works Debt service Interest and fiscal charges Q\ TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers In Operating transfers out Gain on sale of securities TOTAL OTHER FINANCING SOURCES (USES) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES FUND BALANCE AT BEGINNING OF YEAR RESIDUAL EQUITY TRANSFERS IN-AIRPCIRT FUND FUND BALANCE AT END OF YEAR 172,500 - (915020) - 382 - (915,538) 172,500 - (405,309) 5,110 (4,248) 739,386 - 16096 (8,371) - $334,077 ($3.261) $12,748 375,000 - - - - 547,500 (1,100,000) (1284,579) - - (3,300,499) 934 1,485 - - 2,801 375,000 - (1,099,066) (1283,094) - - (2,750,198) (18,239) 30,757 (154,794) 199,531 125 (2,070) (349,137) (67,355) 86,150 550,481 1276,014 3,771 4,751 2,610,194 (8,371) 5 94 $116.907 95887 1475545 $3b96 $2,681 $2252,686 Cr = C.-- C-- lr r- c::: Lr, - ire.. != C:_-� Cl - � rel.. 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Yrs -- r City of Cape Girardeau, Missouri SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDRURES AND CHANGES IN FUND BALANCE FCR THE FISCAL YEAR ENDED JUNE 30,1994 CONVENTION/ DOWNTOWN BUSINESS PARKS AND MOTOR CAPITAL IMPROVEMENT FLOOD VISION TOTALS TOURISM ARPCRT DISTRICT RECREATION HEALTH FUEL TAX SALES TAX PROTECTION 2000 1993-1994 $747,301 $- $21,567 $- $135,508 $- $1,426,938 $- - $- - $2,331,314 1,210,324 - 167,714 - - 3,915 1,038,695 - 276,200 1,893 9,077 - 265,230 - - _ _ _ 20p95 96A18 - 445 4,354 - - 175 3,409 22,858 56,154 - 125 3,466 153 125,333 101,598 18279 - 788,388 273,409 22P12 269,759 142,832 1,061,553 1,483,092 125 3,619 4,044,769 - - 5,689 310,068 278,139 - 26.260 - - - - 661,083 - _ - 661,083 - - - - - 112,075 - - - 112,075 - - - 116,698 - - - - 553,541 - 436,843 - 3,955 - 1,915 - 583 467 - - 6,920 278,139 440,798 26260 662,998 112,075 117,281 467 - 5,689 1,643,707 510,229 (167,390) (4,248) (393239) 30,757 944,272 1,482,825 125 (2,070) 2,401,061 172,500 - (915020) - 382 - (915,538) 172,500 - (405,309) 5,110 (4,248) 739,386 - 16096 (8,371) - $334,077 ($3.261) $12,748 375,000 - - - - 547,500 (1,100,000) (1284,579) - - (3,300,499) 934 1,485 - - 2,801 375,000 - (1,099,066) (1283,094) - - (2,750,198) (18,239) 30,757 (154,794) 199,531 125 (2,070) (349,137) (67,355) 86,150 550,481 1276,014 3,771 4,751 2,610,194 (8,371) 5 94 $116.907 95887 1475545 $3b96 $2,681 $2252,686 Cr = C.-- C-- lr r- c::: Lr, - ire.. != C:_-� Cl - � rel.. 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Yrs -- r City of Cape Girardeau, Missouri CONVENTION/TOURISM SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($578,929) ($408,507) $170,422 67 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes $704,991 $747,301 $42,310 Charges for services — 1,893 1,893 Mscellaneous — 20-,895 20,895 Interest 2,000 18,279 16,279 TOTAL REVENUES 706,991 788,368 81,377 EXPENDITURES Current Development services 300,000 281,337 18,663 TOTAL EXPENDITURES 300,000 281,337 18,663 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 406,991 507,031 100,040 OTHER FINANCING SOURCES (USES) Operating transfers out (985,920) (915,920) 70,000 Gain on sale of securities — 382 382 TOTAL OTHER FINANCING SOURCES (USES) (985,920) (915,538) 70,382 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($578,929) ($408,507) $170,422 67 City of Cape Girardeau, iAssourl AIRPORT SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 %8 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Intergovemmental $362,500 $167,714 .($194,786) Charges for services 11,500 9,077 (2,423) Mscellaneous 103,000 96,618 . (6,382) TOTAL REVENUES 477,000 273,409 (203,591) EXPENDITURES Current Public works 678,539 443,764 234,775 Debt Service Interest and fiscal charges — 3,955 (3,955) TOTAL EXPENDITURES 678,539 447,719 230,820 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (201,539) (174,311) 27,229 OTHER FINANCING SOURCES (USES) Operating transfers in 172,500 172,500 — TOTAL OTHER FINANCING SOURCES (USES) 172,500 172,500 — EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($29,039) ($1,811) $27,229 %8 City of Cape Girardeau, Missouri DOWNTOWN BUSINESS DISTRICT SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30. 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes $20,500 $21,567 $1,067 Interest 600 445 (155) TOTAL REVENUES 21,100 22,012 912 EXPENDITURES Current Development wvices 20,250 26,260 (6,010) TOTAL EXPENDITURES 20,250 26,260 (6,010) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 850 (4,248) (51098) OTHER FINANCING SOURCES (USES) — — — TOTAL OTHER FINANCING SOURCES (USES) — — — EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $850 ($4,248) ($5,098) City of Cape Girardeau, Missouri PARKS AND RECREATION SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 70 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Charges for seMces $250,000 $265,230 $15,230 Mscellaneous 4,000 4,354 354 Interest 500 -175 (325) TOTAL REVENUES 254,500 269,759 15,259 EXPENDITURES Current Parks and recreation 626,706 661,737 (35,031) Debt service Interest and fiscal charges — 1,915 (1,915) TOTAL EXPENDITURES 626,706 663,652 (36,946) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (372,206) (393,893) (21,687) OTHER FINANCING SOURCES (USES) Operating transfers in 375,000 375,000 — TOTAL OTHER FINANCING SOURCES (USES) 375,000 375,000 — EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $2,794 ($18,893) ($21,687) 70 City of Cape Girardeau, Missouri HEALTH SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 71 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes $103,700 $135,508 $31,808 Intergovernmental 3,300 3,915 615 Interest 2,100 3,409 1,309 TOTAL REVENUES 109,100 142,832 33,732 EXPENDITURES Current Public safety 124,971 112,600 12,371 TOTAL. EXPENDITURES 124,971 112,600 12,371 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (15,871) 30,232 46,103 OTHER FINANCING SOURCES (USES) — — — TOTAL OTHER FINANCING SOURCES (USES) — — — EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($15,871) $30,232 $46,103 71 City of Cape Girardeau, Missouri MOTOR FUEL TAX SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 72 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Intergovernmental $936,000 $1,038,695 $102,695 Interest 10,000 22,858 12,858 TOTAL REVENUES 946,000 1,061,553 115,553 EXPENDITURES Current Public works 150,000 116,698 33,302 Debt Service Interest and fiscal charges — 583 (583) TOTAL EXPENDITURES 150,000 117,281 32,719 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 796,000 944,272 148,272 OTHER FINANCING SOURCES (USES) Operating transfers out (1,100,000) (1,100,000) — Gain on sale of securities — 934 934 TOTAL OTHER FINANCING SOURCES (USES) (1,100,000) (1,099,066) 934 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($304,000) ($154,794) $149,206 72 City of Cape Girardeau, Missouri CAPITAL IMPROVEMENT SALES TAX SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Taxes $1,326,864 $1,426,938 $100,074 Interest 46,500 56,154 9,654 TOTAL REVENUES 1,373,364 1,483,092 109,728 EXPENDITURES Current Public works 25,000 — 25,000 Debt Service Interest and fiscal charges — 467 (mo) TOTAL EXPENDITURES 25,000 467 24,533 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,348,364 1,482,625 134,261 OTHER FINANCING SOURCES (USES) Operating transfers out (1,284,579) (1,284,579) — Gain on sale of securtties — 1,485 1,485 TOTAL OTHER FINANCING SOURCES (USES) (1,284,579) (1,283,094) 1,485 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $63,785 $199,531 $135,746 73 City of Cape Girardeau, Missouri FLOOD PROTECTION SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30. 1994 74 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Interest $200 $125 ($75) Mscellaneous — — — TOTAL REVENUES 200 125 (75) EXPENDITURES Current Administrative seMces 3,000 — 3,000 TOTAL EXPENDITURES 3,000 — 3,000 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,800) 125 2,925 OTHER FINANCING SOURCES (USES) — — — TOTAL OTHER FINANCING SOURCES (USES) — — — EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($2,800) $125 $2,925 74 City of Cape Girardeau, Missouri VISION 2000 SPECIAL REVENUE FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 75 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Mscellaneous $10,100 $3,466 ($6,634) Interest 300 153 (147) TOTAL REVENUES 10,400 3,619 (6,781) EXPENDITURES Current Development services 10,000 5,689 4,311 TOTAL EXPENDITURES 10,000 5,689 4,311 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 400 (2,070) (2,470) OTHER FINANCING SOURCES (USES) — — — TOTAL OTHER FINANCING SOURCES (USES) — — — EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $400 ($2,070) ($2,470) 75 THIS PAGE INTENTIONALLY LEFT' BLANK. 76 T I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 DEBT SERVICE FUND The Debt Service Fund accounts for the financing of the interest and the retirement of the principal of general long-term debt. The Debt Service Fund is administered by the Finance Department and includes the multi-purpose building bonds and leasehold revenue bonds issued by the Cape Girardeau Public Facilities Authority for general capital improvement projects not funded through Enterprise Funds. Financing is provided by a separate tax levy of $0.10 per $100 assessed valuation, special assessments, and transfers of motor fuel taxes, hoteVmotel and restaurant taxes, and capital improvement sales taxes from special revenue funds. 77 THIS PAGE INTENTIONALLY LEFT BLANK. 0 City of Cape Girardeau, Missouri DEBT SERVICE FUND COMPARATIVE BALANCE SHEET JUNE 30, 1994 AND 1993 79 1994 1993 ASSETS Cash and cash equivalents $169,117 $287,699 Investments 9,560,939 9,607,008 Receivables, net of allowances for doubtful receivables Real estate, personal property and merchant taxes 14,653 20,183 Special assessments receivable 454,593 466,559 Interest receivable 33,539 9,829 Total assets $10,232,841 $10,391,278 LIABILITIES AND FUND EQUITY Interest payable $— $31,461 Deferred revenue 465,646 500,132 Total liabilities 465,646 531,593 Fund Balance Reserved 9,767,195 9,859,685 Unreserved — — Total fund equity 9,767,195 9,859,685 Total liabilities and fund equity $10,232,841 $10,391,278 79 THIS PAGE INTENTIONALLY LEFT BLANK. I T u I 1 1 80 u I CAPITAL PROJECTS FUNDS ' General Capital Improvement Fund - to account for major capital improvement projects funded through local revenue sources, involving general public facilities. ' Corps Flood Control Project Fund - to account for the financing of the local share of the Cape LaCroix -Walker Creek Flood Control Project being constructed by the U.S. Army Corps of ' Engineers. Street Improvements Fund - to account for the financing of street paving and reconstruction ' projects. Many of the projects provide a benefit to a specific group of properties and are financed through the issuance of special assessments to the property owners. ' FAU Street Grants Fund - to account for the major street projects which are paid for with the assistance of federal aid urban (FAin funds. ' Community Development Block Grant Fund - to account for the revenue and expenditures for rehabilitation of housing, capital projects, and economic grants obtained from the Community Development Block Grant Program ' Park Improvements Fund - to account for capital projects directed for park improvements. 1 I� r 1 81 THIS PAGE INTENTIONALLY LEFT BLANK. 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U> a� ammo -go 001 <i LU 0CCw w w m L) o w -a i; m o o �N wow= o}fig o ajoC �S �� - oz ��oo zowz Z U- c w City of Cape Girardeau, Missourl GENERAL CAPITAL IMPROVEMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Intergovernmental $341,664 $524,344 $182,680 Interest 1,000 122,852 121,852 TOTAL REVENUES 342,664 647,196 304,532 EXPENDITURES Capital outlay 2,470,474 1,859,103 611,371 Debt service Interest and fiscal charges — 17,065 (17,065) TOTAL EXPENDITURES 2,470,474 1,876,168 594,306 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,127,810) (1,228,972) 898,838 OTHER FINANCING SOURCES (USES) Operating transfers In 390,000 320,000 (70,000) Operating transfers out — — — Proceeds of debt financing — — — Proceeds from fixed assets — — — TOTAL OTHER FINANCING SOURCES (USES) 390,000 320,000 (/0,000) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($1,737,810) ($908,972) $828,838 City of Cape Girardeau. Missouri CORP FLOOD CONTROL CAPITAL PROJECT FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Interest $115,000 $80,437 ($34,563) Mscellaneous — — — TOTAL REVENUES 115,000 80,437 (34,563) EXPENDITURES Capital outlay 2,312,500 255,207 2,057,293 Debt seMce Interest and fiscal charges — — — TOTAL EXPENDITURES 2,312,500 255,207 2,057,293 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,197,500) (174,770) 2,022,730 OTHER FINANCING SOURCES (USES) Operating transfers out — — — Gain on sale of securities — 382 382 TOTAL OTHER FINANCING SOURCES (USES) — 382 382 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($2,197,500) ($174,388) $2,023,112 i City of Cape Girardeau, Missouri STREET IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) :7i .I>F� Interest $65,000 $108,619 $43,619 TOTAL REVENUES 65,000 108,619 43,619 EXPENDITURES Capital outlay -- 1,984,000 1,098,281 885,719 Debt service Interest and fiscal charges — 80,283 (80,283) TOTAL EXPENDITURES 1,984,000 1,178,564 805,436 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (1,919,000) (1,069,945) 849,055 OTHER FINANCING SOURCES (USES) Operating transfers in 500,000 500,000 — Operating transfers out (1,255,548) (1,256,813) (1,265) Proceeds of debt financing — 2,389,500 2,389,500 Gain on sale of securities — 1,316 1,316 Special assessments 580,000 47,141 (532,859) TOTAL OTHER FINANCING SOURCES (USES) (175,548) 1,681,144 1,856,692 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($2,094,548) $611,199 $2,705,747 City of Cape Girardeau, FAssouri FAU STREET GRANTS FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Intergovernmental $380,000 $23,564 ($356,436) Interest 13,000 14,689 1,689 TOTAL REVENUES 393,000 38,253 (354,747) EXPENDITURES Capital outlay 550,000 47,064 502,936 DebtsenAce Interest and fiscal charges — 64 (64) TOTAL EXPENDITURES 550,000 47,128 502,872 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (157,000) (8,875) 148,125 OTHER FINANCING SOURCES (USES) Special assessments 5,000 5,084 84 Gain on sale of securities — 594 594 TOTAL OTHER FINANCING SOURCES (USES) 5,000 5,678 678 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES ($152,000) ($3,197) $148,803 City of Cape Girardeau, Missouri COMMUNITY DEVELOPMENT BLOCK GRANT FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Intergovernmental $200,000 $175,784 ($24,216) Interest 1,500 2,416 916 TOTAL REVENUES 201,500 178,200 (23,300) EXPENDITURES Capital outlay -- 200,000 304,069 (104,069) Debt service Interest and fiscal charges 1,000 790 210 TOTAL EXPENDITURES 201,000 304,859 (103,859) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 500 (126,659) (127,159) OTHER FINANCING SOURCES (USES) Operating transfers In 10,000 25,543 15,543 TOTAL OTHER FINANCING SOURCES (USES) 10,000 25,543 15,543 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $10,500 ($101,116) ($111,616) City of Cape Girardeau, Missouri PARK IMPROVEMENTS FUND SCHEDULE OF REVENUES AND EXPENDITURES — BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUES Mscelianeous $— $21,046 $21,046 Interest 500 2,981 2,481 TOTAL REVENUES 500 24,027 23,527 EXPENDITURES Capital outlay 35,000 69,522 (34,522) Debt service Interest and fiscal charges — 196 (196) TOTAL EXPENDITURES 35,000 69,718 (34,718) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (34,500) (45,691) (11,191) OTHER FINANCING SOURCES (USES) Operating transfers In 100,000 100,000 — Operating transfers out (51,535) (51,535) — Proceeds from fixed assets — 78,150 78,150 TOTAL OTHER FINANCING SOURCES (USES) 48,465 126,615 78,150 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $13,965 $80,924 $66,959 L ' ENTERPRISE FUNDS Sewer Fund - to account for the operations and maintenance of the facilities which provide for the proper treatment and disposal of domestic, commercial, and industrial wastewaters to meet t state and federal regulations. Financing is provided by user fees. ' Water Fund - to account for the operations and maintenance of the facilities which provide for the proper treatment and distribution of safe drinking water and adequate fire flows to meet state and federal regulations. Financing is provided by user fees. Solid Waste Fund - to account for the collection, disposal, and processing of solid waste and recycling materials. The Solid Waste Fund includes the commercial, residential, transfer station, ' landfill, and recycling divisions of the City. Financing is provided by user fees. Golf Course Fund - to account for the operation and maintenance of the 18 hole municipal golf ' course. Financing is from user fees including green fees, cart rental, and pro shop concessions and equipment sales. H 1 91 THIS PAGE INTENTIONALLY LEFT BLANK. 92 City of Cape Girardeau, Missouri ENTERPRISE FUNDS COMBINING BALANCE SHEET June 30, 1994 nth Comparative Totals for June 30, 1993) Solid Golf Totals Sewer Water Waste Course 6-30-94 6-30-93 ASSETS Cash and cash equivalents $620,457 $531,849 $198,912 $24,504 $1,375,722 $909,048 Investments 843,893 193,755 1,037,648 599,953 Udlity charges receivable (net of allowance for doubtful receivables) 369,439 506,865 252,840 - 1,129,144 1,129,912 Grants recalvaide - _ - - Spacial assessments receivable 37,479 _ _ 37,479 48,284 tnterestrecehable 21,679 14,812 2,936 39,427 45,403 Other receivables 6,741 18,020 44,726 508 69,995 9,479 inventories Restricted assets - 150,386 - 608 156,604 166,872 Cash and cash equivalents 1,865,038 948,788 3,275 2,817,101.. 2,404,520 Investments 433,058 1,108,655 121,854 - 1,663,567 2,268,086 Prepaid expenses 188,375 159,876 15,659 91 364,001 313,223 4,386,159 3,633,006 640,2D2 31,321 8,690,688 7,894,780 Property, plant and equipment Land Buildings 135,869 8,156,627 - 198,266 55,921 703,885 - 1,500 191,790 9,060,278 191,790 9,025,912 Improvements other buildings 17,044,430 9,076,665 83,121 327,139 26,531,355 23,027,910 Equipment 749,168 444,959 1,597,762 319,052 3,110,941 2,948,840 Construction in progress 270,113 34,778 - - 304,891 2,481,858 26,356,207 9,754,668 2,440,689 647,691 39,199,255 37,676,310 Less accumulated depreciation 8,082,436 581,842 1,467,326 309,879 10,441,483 9,297,289 18,273,771 9,172,826 973,363 337,812 28,757,772 28,379,021 Total assets $22,659,930. $12805,832 $1,613,565 $369,133 $37,448,460 $36,273,801 LIABILITIES AND FUND EQUITY Accounts payable $147,828 $330,434 $352,933 $13,166 $844,361 $731,758 Accrued Ilabllttles Salaries,payroil taxes and benefits 48,165 2,012 46,674 15,933 112,784 108,086 Interest payable 89,907 253,094 10,062 - 353,063 390,339 Other liabilities 34,384 101,273 272 349 136,278 101,257 Due to other funds - - 12,044 Due to other governments 6,310 118,594 _ _ 124,904 29,826 Advance from other funds 337,500 950,000 435,000 1,722,500 1,722,500 Current pardon of long-term debt 487,469 115,000 130,292 - 732,761 470,486 Long-term debt net of current pardon Revenue bonds payable 4,058,913 11,598,331 _ 15,657,244 15,325,521 Lease purchase obligation payable = Leasehold revenue bands payable 2,724,070 534,895 3,258,965 3,696,286 Estimated landfill closure and post -closure care cost liability Deferred revenue - - 2,132,227 _ 2,132,227 Total liabilities 7,934,546 12,518,738 4,157,355 464,448 25,075,087 22,588,103 Fund equity Contributed capital 14,645,957 218,325 287,279 - 15,151,561 14,575,528 Retained earnings Reserved 25,000 - - - 25,000 16,667 Unreserved Total fund 54,427 68,769 (2,831,069) 95,31 (2,803,188) (906,497) 287,094 14,725,384 2,543,790 95,31 12,373,373 equity 13,685,698 Total liabilities and fund equity $22,659,930 $12,805,832 $1,613,565 $369,133 $37,448,460 $36,273,801 93 OPERATING REVENUES Residential charges Commercial charges Transfer station charges Equipment Was Concession revenues Golf course fees Other fees and charges Interdepartmental services Rental revenue Donations Other miscellaneous TOTAL OPERATING REVENUES OPERATING EXPENSES Personnel services Materials and supplies Contractual services General operating expenses Special projects expense Internal service expenses Depreciation expense TOTAL OPERATING EXPENSES City of Cape Girardeau, Missouri ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FORTH E FISCAL YEAR ENDED JUNE 30.-1994 OPERATING INCOME (LOSS) 587,245 NON-OPERATING REVENUE (EXPENSES) Interest income TOTALS SEWER WATER SOLID WASTE GOLF COURSE 1993-1994 $1,407,557 $2,050,362 $1,278,556 $- $4,736,475 867,737 1,285,805 453,132 - 2,606,674 - - 490,215 - 490,215 - - - 10,143 10,143 - - - 60,475 60,475 - - - 357,086 357,086 30,072 152,285 42,247 - 224,605 - - - 100 100 8,828 9,511 7,320 479 26,139 2,314,195 3,497,963 2,271,471 428,284 8,511,912 675,382 60,692 860,340 182,784 1,779,197 67,191 71,140 49,516 45,004 232,851 177,352 2,172,952 692,254 24,456 3,067,015 41,884 240,199 47,562 42,199 371,844 27,216 (8,383) 34,273 1,759 54,864 76,902 19,919 221,675 33,406 351,902 661,023 288,022 253,604 35,641 1,238,289 1,726,950 2,844,540 2,159,224 365,249 7,095,962 OPERATING INCOME (LOSS) 587,245 NON-OPERATING REVENUE (EXPENSES) Interest income 164,346 Federal grants 43,499 State grants - Sale of fixed assets - Compensation for damages 3,500 Gain on sale of securities 3,313 Issuance cost amortization (29,710) Interest and handling costs (430,599) TOTAL NON-OPERATING REVENUE 17,930 (EXPENSES) (245,650) NET INCOME (LOSS) 341,595 RETAINED EARNINGS (DEFICIT) AT 4,074 BEGINNING OF YEAR 9,166,750 PRIOR PERIOD ADJUSTMENT (9,428,918) RETAINED EARNINGS (DEFICI) AT (3,949) END OF YEAR $79,427 653,423 112,247 63,035 1,415,950 136,190 9,112 491 310,139 - 1,884 - 45,384 1,939 - - 1,939 - 17,930 - 17,930 430 144 - 4,074 18,137 1,180 - 22,630 (11,979) (3,949) - (45,638) (768,710) (66,980) (12,903) (1,279,192) (623,993) (40,678) (12,413) (922,734) 29,430 71,568 50,623 493,216 39,339 (240,893) (145,938) 8,819,258 - (2,661,744) - (12,090,662) $68,769 ($2,831,069) ($95,315) ($2,778,188) 94 City of Cape Girardeau, Missouri ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JUNE 30, 1994 95 SOLID GOLF TOTALS SEWER WATER WASTE COURSE 1993-1994 CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income {loss) $587,245 $653,423 $112,247 $63,035 $1,415,950 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 661,023 288,022 253,604 35,641 1,238,290 Cash operating grants received 43,499 1,939 1,884 - 47,322 Change in assets and liabilities: (increase) decrease in accounts receivable (59,980) 14,649 46,634 (109) 1,194 (Increase) decrease in inventory - 13,288 - (3,020) 10,268 (Increase) decrease in prepaid expenses (54,096) 8,398 (4,989) (91) (50,778) Increase (decrease) in accounts payable (155,200). 207,560 195,499 (17,201) 230,658 Increase (decrease) In accrued liabilities (28,666) (476) (7,147) 3,711 (32,578) Increase (decrease) in landfill postciosure care costs - - (249,347) - 249,34 NET CASH PROVIDED BY OPERATING ACTIVITIES 993,825 1,186,803 348,385 81,966 2,610,979 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating tansfers In from other funds - - - - - NET CASH PROVIDED BY NONCAPITAL FINANCING - - - - - ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from developers 200,2 - - - 200,200 Proceeds from SRF bond Issue 487,024 - - - 487,024 Principal paid on revenue bonds (20,000) (25,000) - - (45,000) Principal paid on lease purchase bonds (303,068) - (118,026) - (421,094) Interest paid on bonds and obligations (406,890) (760,345) (41,523) - (1,208,758) Proceeds from capital grants received from other governments 40,675 - 7,109 - 47,784 Purchase of fixed assets (798,133) (413,082) (100,784) (45,050) (1,357,049) Other 64,544 12,228 21,496 12,903 85,365 NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVMES 35,648 (1,186,199) 231,728 57,953 2,211,528 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (1,474,754) (1,401,215) (121,854) - (2,997,823) Proceeds from sale of investments 1,338,729 1,709,729 119,029 - 3,167,487 Interest on Investments 164,346 136,190 9,112 491 310,139 NET CASH USED IN INVESTING ACTIVITIES 28,321 444,704 6,287 491 479,803 INCREASE IN CASH AND CASH EQUIVALENTS 286,498 445,308 122,944 24,504 879,254 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,198,997 1,035,329 79,243 - 3,313,569 CASH AND CASH EQUIVALENTS AT END OF YEAR $2,485,495 $1,480,637 $202,187 24 504 $4,192,823 CASH PAID DURING THE YEAR FOR INTEREST $406,890 $760,345 $41,523 - $1,208,758 NON-CASH CAPITAL FINANCING ACTIVITIES: Contributions of fixed assets $154,026 - - - $154,026 95 City of Cape Girardeau, Missouri SEWER FUND SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED .UNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) OPERATING REVENUES Residential charges $1,223,250 $1,407,557 $184,307 Commercial charges 892,500 867,737 (24,763) Other fees and charges 42,000 30,072 (11,928) Other miscellaneous 5,000 _ 8,828 3,828 TOTAL OPERATING REVENUES 2,162,750 2,314,195 151,445 OPERATING EXPENSES Personnel sVrvlces 672,616 675,382 (2,766) Materials and supplies 73,756 67,191 6,565 Contractual services 185,818 180,328 5,490 General operating expenses 27,801 41,884 (14,083) Special projects expense 170,500 27,216 143,264 Internal service expense 76,189 76,902 (713) Depreciation expense 681,655 661,023 20,632 TOTAL OPERATING EXPENSES 1,888,335 1,729,926 158,409 OPERATING INCOME (LOSS) 274,415 584,269 305,854 NON-OPERATING REVENUE "TENSES) Interest Income 165, 000 164,346 (654) Federal grants - 43,499 43,499 Compensation for damages - 3,500 3,500 Gain on sale of securities - 3,313 3,313 Issuance cost amortization (17,135) (29,710) (12,575) Interest and handling costs (450,730) (430,599) 20,131 TOTAL NON-OPERATING REVENUE (EXPENSES) (302,865) (245,650) 57,215 NET INCOME (LOSS) ($28,450) $338,618 $367,068 11 iI �I L� L, G n City of Cape Girardeau, Missouri WATER FUND SCHEDULE OF REVENUES AND EXPENSES— BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JIUNE 30.1994 97 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) OPERATING REVENUES Residential charges $2,050,000 $2,050,362 $362 Commercial charges 1,306,000 1,285,805 (20,195) Other fees and charges 113,000 152,285 39,285 Other miscellaneous 4,000 9,511 5,511 TOTAL OPERATING REVENUES 3,473,000 3,497,963 24,963 OPERATING EXPENSES Personnel s&vices 63,632 60,692 2,940 Materials and supplies 1,900 71,140 (69,240) Contractual services 2,138,100 2,173,121 (35,021) General operating expenses 248,000 240,199 7,801 Special projects expense — 10,917 (10,917) Internal service expense 11,655 19,919 (8,264) Depreciation expense 295,560 288,022 7,538 TOTAL OPERATING B(PENSES 2,758,847 2,864,009 (105,163) OPERATING INCOME (LOSS) 714,153 633,954 (80,200) NON—OPERATING REVENUE (EV LASES) Interest Income 125,000 136,190 11,190 Federal grants Slate grants — 1 g�q 1,939 Compensation far damages — 430 430 Gain on sale of securities — 18,137 18,137 Issuance cost amortization (11,980) (11,979) 1 Interest and handling costs (768,800) (768,710) 90 TOTAL NON—OPERATING REVENUE (EXPENSES) (655,780) (623,993) 31,787 NET INCOME (LOSS) $58.373 $9.961 ($48.4131 97 n City of Cape Girardeau, Missouri SOLID WASTE FUND SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 R 98 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) OPERATING REVENUES Residential charges $1,252,930 $1,278,556 $25,626 Commercial charges 490,000 453,132 (36,86 Transfer station charges 454,140 490,215 36,075 Other fees and charges 40,000 A2,247 2,247 Other miscellaneous 1,000 7,320 6,320 TOTAL OPERATING REVENUES 2,238,070 2,271,470 33,400 OPERATING EXPENSES Personnel services 808,516 860,340 (51,824) Materials and supplies 59,685 49,516 10,169 Contractual services 724,075 692,254 31,821 General operating expenses 34,065 47,562 (13,497) Special projects expense 50,700 34,273 16,427 Internal service expense 268,933 221,675 47,258 Depreciation expense 252, 798 253,6D4 (806) TOTAL OPERATING EXPENSES 2,198,772 2,159,224 39,548 OPERATING INCOME (LOSS) 39,298 112,247 72,948 NON-OPERATING REVENUE (D(PENSES) Interest income 12,000 9,112 (2,888) Federal grants - 1,884 1,884 State grants - - - Sale of fixed assets - 17,930 17,930 Compensation for damages 1,000 144 (856) Gain on sale of securities - 1,180 1,180 Issuance cost amortization (2,630) (3,949x) (1,319) Into stand handling costs (82,650 (66,984) 15,670 TOTAL NON-OPERATING REVENUE (EXPENSES) (72,280) (40,679) 31,601 NET INCOME (LOSS) ($32,984 $71,568 $104,549 R 98 City of Cape Girardeau, Missouri GOLF COURSE FUND SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED JUNE 30, 1994 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) OPERATING REVENUES Equipment sales $15,000 $10,143 ($4,857) Concession revenues 68,000 60,475 (7,525) Golf corse fees 339, 000 357,086 18,086 Donations - - 100 100 Other miscellaneous 2,000 479 (1,521) TOTAL OPERATING REVENUES 424,000 428,284 4,283 OPERATING EXPENSES Personnel services 180,214 182,784 (2,570) Materials and supplies 56,365 45,248 11,117 Conractual services 25,040 28,051 (3,011) General operating expenses 50,800 42,199 8,601 Special projects expense 10,000 1,759 8,241 Internal service expense 37,300 33,406 3,894 Depreciation expense 35,239 35,641 (402) TOTAL OPERATING EXPENSES 394,958 369,088 25,870 OPERATING INCOME (LOSS) 29,042 59,196 30,153 NON-OPERATING REVENUE (EXPENSES) Interest Income 200 491 291 Issuance cost amortization - - - Interest and handling costs (16,450) (12,903) 3,547 TOTAL NON-OPERATING REVENUE (EXPENSES) (16,250) (12,417) 3,838 NET INCOME (LOSS) $12 792 $46.784 $33.991 THIS PAGE INTENTIONALLY LEFT BLANK. 100 I f I I INTERNAL SERVICE FUNDS Data Processing Fund - to account for data processing services for all City departments and various functions. Financing is provided from assessed charges for the use of data processing equipment, computer supplies, and personnel services. Fleet Management Fund - to account for the maintenance of the municipal fleet. Financing is provided from assessed charges from departments for fuel, parts, and labor. Employees' Fringe Benefit Fund - to account for partial cafeteria benefit plan and financing the refund of LAGERS contributions 'to employees. Risk Management Fund - to account for self-insured workmen's compensation coverage for City employees. Financing is provided from assessed charges to departments based upon levels of risk. 101 THIS PAGE INTENTIONALLY LEFT BLANK. 102 103 City of Cape Girardeau, Missouri INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET June 30, 1994 (With Comparative Totals for June 30, 1993) Employees' Data Fleet Fringe Risk Totals Processing Management Benefit Management 6-30-94 8-30-93 ASSETS Cash and cash equivalents $60,979 $96,770 $253,144 $35,803 $446,696 $407,130 Investments 99,000 100,000 749,394 279,843 $1,228,237 781,952 Interest receivable - 1,981 11,102 1,579 14,662 3,300 Other receivables - 17,753 137 - - 17,890 97,614 Inventories - 7,921 - - 7,921 14,350 Prepaid expenses 54,702 895 - 67,453 123,050 121,406 Due from other funds - - - - - 225,503 214,681 225,320 1,013,777 384,678 1,838,456 1,651,255 Property, plant and equipment Land - 37,500 - - 37,500 37,500 Buildings - 363,214 - - 363,214 365,114 Improvements other buildings - 26,851 - - 26,851 26,850 Equipment 804,310 153,544 - - 957,854 876,062 804,310 581,109 - - 1,385,419 1,305,526 Less accumulated depreciation 393,002 264,639 - - 657,641 533,017 411,308 316,470 - - 727,778 772,509 Total assets $625,989 $541,790 $1,013,777 $384,678 $2,566,234 $2,423,764 LIABILITIES AND FUND EQUITY Accounts payable $12,788 $50,862 $145,787 $150,616 $360,053 $188,902 Accrued liabilities Salaries,payroll taxes and benefits 4,662 21,283 - - 25,945 24,492 Other liabilities - 42 - - 42 40 Due to other funds - - - - - 225,503 Total liabilities 17,450 72,187 145,787 150,616 386,040 438,937 Retained earnings Reserved - - - - - - Unreserved 608,539 469,603 867,990 234,062 2,180,194 1,984,827 Total fund equity 608,539 469,603 867,990 234,062 2,180,194 1,984,827 Total liabilities and fund equity $625,989 $541,790 $1,013,777 $384,678 $2,566,234 $2,423,764 103 City of Cape Girardeau, Missouri INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE FISCAL YEAR ENDED JUNE 30, 1994 104 EMPLOYEES' DATA FLEET FRINGE RISK TOTALS PROCESSING MANAGEMENT BENEFIT MANAGEMENT 1993-1994 OPERATING REVENUES Interdepartmental services $234,181 $714,740 $754,373 $582,588 $2,285,882 Other miscellaneous 82 44 - - 127 TOTAL OPERATING REVENUES 234,264 714,784 754,373 582,588 2,286,009 OPERATING EXPENSES Personnel services 47,328 345,414 - - 392,742 Materials and supplies 2,886 226,544 - - 229,430 Contractual services 89,397 128,204 782,227 370,710 1,370,538 General operating expenses 553 850 1,255,548 15,855 1,272,806 Internal service expenses - 3,298 - - 3,298 Depreciation expense 100,586 25,929 - - 126,515 TOTAL OPERATING EXPENSES 240,751 730,239 2,037,775 386,565 3,395,329 OPERATING INCOME (LOSS) (6,487) (15,455) (1,283,402) 196,024 (1,109,320) NON-OPERATING REVENUES (EXPENSES) Interest income 4,023 5,580 26,643 11,480 47,726 Sales of fixed assets (904) 42 - - (862) Compensation for damages 3,295 466 - - 3,761 Gain on sale of securities - - 1,464 - 1,464 Interest and handling costs - - (1,307) (1,642) (2,949) TOTAL NON-OPERATING REVENUES (EXPENSES) 6,414 6,088 26,800 9,838 49,140 INCOME (LOSS) BEFORE OPERATING TRANSFERS (73) (9,367) (1,256,602) 205,861 (1,060,180) Operating transfers In - - 1,255,548 - 1,255,548 NET INCOME (LOSS) (73) (9,367) (1,054) 205,861 195,367 RETAINED EARNINGS (DEFICIT) AT BEGINNING OF YEAR 608,612 478,970 869,044 28,201 1,984,827 RETAINED EARNINGS (DEFICIT) AT END OF YEAR $608,539 $469,603 $867,990 $234,062 $2,180,194 104 City of Cape Girardeau, Missouri INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JUNE 30, 1994 EMPLOYEES' DATA FLEET FRINGE RISK TOTALS PROCESSING MANAGEMENT BENEFIT MANAGEMENT 1993-1994 CASH FLOWS FROM OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Cash operating grants received Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in Inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in landfill postclosure care costs NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers in tom other funds NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from developers Proceeds tom SRF bond issue Principal paid on revenue bonds Principal paid on lease purchase bonds Interest paid on bonds and obligations Proceeds from capital grants received from other governments Purchase of fixed assets Other NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments Proceeds tom sale of investments Interest on investments NET CASH USED IN INVESTING ACTIVITIES INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR ($7,391) ($15,455) ($1,283,402) $196,024 ($1,110,224) 100,586 25,929 - - 126,515 - 13,214 276,792 3,859 293,865 - 6,429 - - 6,429 (1,527) (55) - (62) (1,644) 1,902 1,564 17,658 (75,474) (54,350) -(79) 1,532 - - 1,453 93,491 33,158 (988,952) 124,347 (737,956) - - 1,255,548 - 1,255,548 - - 1,255,548 - 1,255,548 (66,168) (18,419) - - (84,587) 4,199 2,407 (1,076) (1,679) 3,851 (61,969) (16,012) (1,076) (1,679) (80,736) (99,000) (100,000) (749,375) (99,000) (1,047,375) - - 602,359 - 602,359 4,023 5,580 26,643 11,480 47,726 94,97 (94,420) (120,373) (87,520) (397,290) (63,455) (77,274) 145,147 35,148 39,566 124,434 174,044 107,998 654 407,130 $60,979 $96,770 $253,145 $35,802 $446,696 105 City of Cape Girardeau, Missouri DATA PROCESSING FUND SCHEDULE OF REVENUES AND EXPENSES— BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED J JNE 30.1994 Interest and handling costs TOTAL NON—OPERATING REVENUE (EXPENSES) 2,000 6,414 4,414 NET INCOME COSS) $7,334 ($73) ($7,407) 106 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) OPERATING REVENUES Interdepartmenlal services $231,769 $234,181 $2,412 Other miscellaneous — 82 82 TOTAL OPERATING REVENUES 231,769 234,263 2,494 OPERATING EXPENSES Personnel services 48,272 47,328 944 Materials and supplies 3,500 2,886 614 Contractuallservices 80,000 89,397 (9,397) General operating expenses 500 553 (53) Internal service expense — — — Depreciation expense 94,163 100,586 (6,423) TOTAL OPERATING EXPENSES 226,435 240,750 (14,315) OPERATING INCOME (LOSS) 5,334 (6,487) (11,821) NON-OPERATING REVENUE (EXPENSES) Interest Income 2,000 4,023 2,023 Sale of fixed assets — (904) (904) Compensation for damages — 3,295 3,295 Interest and handling costs TOTAL NON—OPERATING REVENUE (EXPENSES) 2,000 6,414 4,414 NET INCOME COSS) $7,334 ($73) ($7,407) 106 City of Cape Girardeau, Missouri FLEET MANAGEMENT FUND SCHEDULE OF REVENUES AND EXPENSES— BUDGET AND ACTUAL (BUDGET BASIS) FOR THE FISCAL YEAR ENDED .LUNE 30, 1994 Interest and handling costs TOTAL NON—OPERATING REVENUE (EXPENSES) 12,000 6,088 (5,912) NET INCOME (LOSS) $613 ($10,418) ($11,031) 107 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) OPERATING REVENUES Intel epartmentai services $831,798 $714,740 ($117,068) Other miscellaneous — 44 44 TOTAL OPERATING REVENUES 831,798 714,784 (117,014) OPERATING EXPENSES Personnel services 358,971 345,414 13,557 Materials and supplies 251,000 227,595 23,405 Contractual services 205,800 128,204 77,596 General operating expenses 1,000 850 150 Internal service expense 3,200 3,298 (98) Depreciation expense 23,214 25,929 (2,715) TOTAL OPERATING EXPENSES 843,185 731,290 111,895 OPERATING INCOME (LOSS) (11,387) (16,506) (5,119) NON—OPERATING REVENUE (EXPENSES) Interest income 6,000 5,580 (420) Sale of foxed assets — 42 42 Compensation for damages 6,000 466 (5,534) Interest and handling costs TOTAL NON—OPERATING REVENUE (EXPENSES) 12,000 6,088 (5,912) NET INCOME (LOSS) $613 ($10,418) ($11,031) 107 OPERATING REVENUES Interdepartmental services $717,000 $754,373 $37,373 Other miscellaneous — — — TOTAL. OPERATING REVENUES 717,000 754,373 37,373 OPERATING EXPENSES U City of Cape Girardeau, Missouri — EMPLOYEES' FRINGE BENEFIT FUND — SCHEDULE OF REVENUES AND EXPENSES— BUDGET AND ACTUAL (BUDGET BASIS) — FOR THE FISCAL YEAR ENDED JUNE 30, 1994 — VARIANCE 605,000 FAVORABLE (177,227) BUDGET ACTUAL (LXVFAVORABLE) 1,255,548 OPERATING REVENUES Interdepartmental services $717,000 $754,373 $37,373 Other miscellaneous — — — TOTAL. OPERATING REVENUES 717,000 754,373 37,373 OPERATING EXPENSES Personnel services — — — Materials and supplies — — — Contractual�eMces 605,000 782,227 (177,227) General operating expenses 1,255,548 1,255,548 — hrta, al service expense — — Depreciation expense expense — — — TOTAL OPERATING EXPENSES 1,860,548 2,037,775 (177,227) OPERATING INCOME (LOSS) (1,143,548) (1,283,402) (139,854) NON—OPERATING REVENUE (EXPENSES) Interest Income 35,000 26,643 (8,357) Gain on sale of securities — 1,464 1,464 Interest and handling costs (102,000) (1,307) 100,693 TOTAL NON—OPERATING REVENUE (EXPENSES) (67,000) 26,800 93,800 INCOME (LOSS") BEFORE OPERATING TRANSFERS (1,210,548) (1,256,602) (46,054) Operating transfers in 1,255,548 1,255,548 — NET INCOME (LOSS) $45,000 ($1,0541 ($46.0541 108 1 1 1 1 1 1 1 1 AGENCY FUNDS Library Fund - to account for a separate tax levy of $0.16 per $100 assessed valuation for the Cape Girardeau Public Library. Arena Improvement Fund - to account for assets held for the A.C. Brase Foundation for improvements to the A.C. Brase Arena Building, a multi-purpose facility. Deferred Compensation Fund - to account for assets held for employees under the City's deferred compensation plan Section 457. Park Development Foundation Fund - to account for assets held for the Park Development Foundation for development and/or improvements to parks within the City. 109 THIS PAGE INTENTIONALLY LEFT BLANK. 110 City of Cape Girardeau, Missouri AGENCY FUNDS . COMBINING BALANCE SHEET June 30, 1994 (With Comparative Totals for June 30, 1993) Park Arena Deferred Development Totals Library Improvement Compensation Foundation 6-30-94 6-30-93 ASSETS Cash and cash equivalents $90,258 $49,739 $- $153 $140,150 $299,662 Investments 196,896 - 901,051 - 1,097,947 692,606 Receivables, net of allowances for doubtful receivables Real estate tax 19,768 - - - 19,768 20,951 Personal property tax 2,353 - - - 2,353 5,946 Other receivables 159 - - - 159 534 Interest receivable 1,552 - - - 1,552 - Prepaid expenses 7,474 350 - - 7,824 7,185 Total assets $318.460$50,089 $901,051 153 $1,269.753 $1.026.884 LIABILITIES AND FUND EQUITY Accounts payable $15,343 $3,114 $- $100 $18,557 $10,749 Accrued liabilities Salaries, payroll taxes and benefits 7,250 - - - 7,250 7,490 Other liabilities 200,510 46,975 - 53 247,538 216,863 Advance from other funds 75,000 - - - 75,000 75,000 Deferred compensation due employees - - 901,051 - 901,051 692,606 Deferred revenue 20,357 - - - 20,357 24,176 Total liabilities 318,460 50,089 901,051 153 1,269,753 1,026,884 Fund balance Reserved - - - - - - Unreserved - - - - - - Total fund equity - - - - - - Total liabilities and fund equity $318,460 $50,089 $901,051 $153 $1,269,753 $1,026,884 City of Cape Girardeau, Missouri LIBRARY AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 ASSETS Cash and cash equivalents Investments Receivables, net of allowances for doubtful receivables Real estate tax Personal property tax Other receivables Interest receivable Prepaid expenses Total assets LIABILITIES Accounts payable Accrued liabilities Salaries, payroll taxes and benefits Other liabilities Advance from other funds Deferred revenue Total liabilities Balance July 1. 1993 $257,603 20,951 5,946 534 7,185 $292,219 $10,528 7,490 175,025 75,000 $292,219 112 Additions Deletions Balance June 30, 1994 $538,048 $705,393 $90,258 196,896 - 196,896 313,208 314,391 19,768 77,501 81,094 2,353 2,642 3,017 159 1,552 8,507 - 8,218 1,552 7,474 $1,138,354 $1,112,113 $318,460 $217,708 $212,893 $15,343 217,968 218,208 7,250 52,277 26,792 200,510 - - 75,000 376,228 380,047 20,357 $864,181 $837,940 $318,460 City of Cape Girardeau, Missouri LIBRARY AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 ASSETS Cash and cash equivalents Investments Receivables, net of allowances for doubtful receivables Real estate tax Personal property tax Other receivables Interest receivable Prepaid expenses Total assets LIABILITIES Accounts payable Accrued liabilities Salaries, payroll taxes and benefits Other liabilities Advance from other funds Deferred revenue Total liabilities Balance July 1. 1993 $257,603 20,951 5,946 534 7,185 $292,219 $10,528 7,490 175,025 75,000 $292,219 112 City of Cape Girardeau, Missouri ARENA IMPROVEMENT AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 113 Balance Balance July 1, 1993 Additions Deletions June 30, 1994 ASSETS Cash and cash equivalents $42,055 $36,069 $28,385 $49,739 Prepaid expenses — 645 295 350 Total assets $42,055 $36,714 $28,680 $50,089 LIABILITIES Accounts payable $221 $28,570 $25,677 $3,114 Other liabilities 41,834 28,767 23,626 46,975 Total liabilities $42,055 $57,337 $49,303 $50,089 113 City of Cape Girardeau, Missouri DEFERRED COMPENSATION AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 ASSETS Investments Total assets LIABILITIES Deferred compensation due employees Total liabilities Balance July 1. 1993 Additions Deletions $692.606 $692,606 $692,606 $692,606 114 Balance June 30, 1994 $208,445 $901,051 $208,445 $901,051 $208,445 $901,051 $208,445 $901,051 City of Cape Girardeau, Missouri PARK DEVELOPMENT FOUNDATION AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1994 115 Balance Balance July 1, 1993 Additions Deletions June 30, 1994 ASSETS Cash and cash equivalents $4 $153 $4 $153 Total assets $4 $153 $4 $153 LIABILITIES Accounts payable $— $101 $1 $100 Other liabilities 4 700 651 53 Total liabilities $4 $801 $652 $153 115 P, T I THIS PAGE INTENTIONALLY LEFT BLANK. TI 116 GENERAL FIXED ASSETS ACCOUNT GROUP 117 THIS PAGE INTENTIONALLY LEFT BLANK. 118 City of Cape Girardeau, Missouri SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE June 30, 1994 GENERAL FIXED ASSETS Land Buildings Improvements other than buildings Machinery and equipment Contruction in progress TOTAL GENERAL FIXED ASSETS INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE General fund Special revenue funds Capital projects funds TOTAL INVESTMENT IN GENERAL FIXED ASSETS 119 $2,073,938 4,245,509 1,774,058 1,141,193 1,217,052 $10,451,750 $4,181,787 2,956,742 3,313,221 $10,451,750 City of Cape Girardeau, Missouri SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY June 30, 1994 Function and Activity Land Buildings ADMINISTRATIVE SERVICES Stormwater - City manager $200,000 $140,728 Interdepartmental 67,340 - Finance - - TOTAL ADMINISTRATIVE SERVICES 267,340 140,728 DEVELOPMENT SERVICES 4,506 - Planning services - - Inspection services - - Engineering services - - TOTAL DEVELOPMENT SERVICES - - PARKS AND RECREATION $4,245,509 $1,774,058 Park maintenance 855,238 273,451 Recreation - - Cemetery 4,120 - Central pool - 708,388 Capaha pool - - TOTAL PARKS AND RECREATION 859,358 981,839 PUBLIC SAFETY Municipal court - - Health - - Police 17,500 312,463 Fire 210,950 991,643 TOTAL PUBLIC SAFETY 228,450 1,304,106 PUBLIC WORKS Improvements Machinery Construction Other Than and in Buildings Equipment Progress $- $2,546 3,594 - 505 - 6,645 - 9,300 - 3,682 - 24,373 - - 37,355 - 7,817 96,857 - - 1,180 - 16,477 - 7,139 - 7,817 122,016 - - 847 - - 3,435 - - 157,695 - - 527,619 - - 689,596 - Street - - - Stormwater - - - Airport 354,649 246,586 1,600,968 TOTAL PUBLIC WORKS 354,649 246,586 1,600,968 CAPITAL OUTLAY - 442,504 1,233,362 4,506 General capital improvements 10,000 1,572,251 76,911 Park improvements 354,141 - 88,363 TOTAL CAPITAL OUTLAY 364,141 1,572,251 165,273 TOTAL GENERAL FIXED ASSETS $2,073,938 $4,245,509 $1,774,058 120 Total - 188,604 $343,274 68,437 70,934 505 414,713 - 2,226,237 9,300 281,075 3,682 24,373 4,506 37,355 - - 442,504 1,233,362 4,506 1,180 20,597 $1,217,052 $10,451,750 715,527 363 1,971,029 847 3,435 487,658 1,730,212 2,222,152 188,604 - 188,604 68,437 - 68,437 24,034 - 2,226,237 281,075 - 2,483,278 4,506 1,217,052 2,880,719 - - 442,504 4,506 1,217,052 3,323,223 $1,141,193 $1,217,052 $10,451,750 Function and Activity ADMINISTRATIVE SERVICES City manager Interdepartmental Finance TOTAL ADMINISTRATIVE SERVICES DEVELOPMENT SERVICES Planning services Inspection services Engineering services TOTAL DEVELOPMENT SERVICES PARKS AND RECREATION Park maintenance Recreation Cemetery Central pool Capaha pool Library TOTAL PARKS AND RECREATION PUBLIC SAFETY Municipal court Health Police Fire TOTAL PUBLIC SAFETY PUBLIC WORKS Street Stonnwater Airport TOTAL PUBLIC WORKS CAPITAL OUTLAY General capital improvements Park improvements TOTAL CAPITAL OUTLAY TOTAL GENERAL FIXED ASSETS City of Cape Girardeau, Missouri SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FOR THE FISCAL YEAR ENDED JUNE 30, 1994 General Fixed General Fixed Assets June 30. 1993 Additions Deductions Transfers To (From) Depreciation Exgmnse Assets June 30. 1994 $351,019 $2,195 $- $- $9,940 $343,274 71,695 - - (1,917) (1,156) 70,934 612 - - - 107 505 423,326 2,195 - (1,917) 8,891 414,713 - 10,420 - - 1,120 9,300 6,423 - - - 2,741 3,682 16,086 14,296 - - 6,009 24,373 22,509 24,716 - - 9,870 37,355 1,255,426 37,672 - 1,917 61,653 1,233,362 301 1,191 - - 312 1,180 24,321 - - - 3,724 20,597 744,505 - - - 28,978 715,527 618 - - - 255 363 539,942 - - (539,942) - - 2,565,113 38,863 - (538,025) 94,922 1,971,029 - 949 - - 102 847 4,544 - - - 1,109 3,435 533,205 81,834 21,983 - 105,398 487,658 1,771,642 73,115 - - 114,545 1,730,212 2,309,391 155,898 21,983 - 221,154 2,222,152 205,479 27,459 - - 44,334 188,604 75,973 7,491 - - 15,027 68,437 - - - 2,357,505 131,268 2,226,237 281,452 34,950 - 2,357,505 190,629 2,483,278 367,194 2,510,8D5 1,105,572 1,162,589 54,298 2,880,719 408,480 39,046 - - 5,022 442,504 775,674 2,549,851 1,105,572 1,162,589 59,320 3,323,223 $6,377,465 $2,806.473 $1,127,555 X980,153 $584,784 $10.451,750 121 THIS PAGE INTENTIONALLY LEFT BLANK. 122 T T of 11 0 k, GENERAL LONG-TERM DEBT ACCOUNT GROUP u 0 1 123 THIS PAGE INTENTIONALLY LEFT BLANK. I I I I 11 11 I I 124 0 City of Cape Girardeau, Missouri SCHEDULE OF CHANGES IN LONG—TERM DEBT FOR THE FISCAL YEAR ENDED JUNE 30. 1994 125 General General Long—term Long—term Debt Debt July 1. 1993 Additions Retirements June 30, 1994 GENERAL LONG—TERM DEBT Leasehold revenue bonds payable $11,398,713 $10,500,934 $8,495,449 $13,404,198 Certificates of participation payable 3,795,000 — 250,000 3,545,000 General obligation bonds payable 3,905,000 — 190,000 3,715,000 General obligation refunding bonds payable 7,270,000 — = 7,270,000 Accrued benefits 452,697 38,834 — 491,531 Due to other governments—State energy loan 99,872 544 6,758 93,658 TOTAL GENERAL LONG—TERM DEBT $26,921,282 $10,540,312 $8,942,207 $28,519,387 125 City of Cape Girardeau, Missouri STATEMENT OF GENERAL LONG—TERM DEBT JUNE 30, 1994 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG—TERM DEBT LEASEHOLD REVENUE BONDS Amount available In debt service fund Amount to be provided CERTIFICATES OF PARTICIPATION Amount available in debt service fund Amount to be provided GENERAL OBLIGATION BONDS Amount available in debt service fund Amount to be provided GENERAL OBLIGATION REFUNDING BONDS Amount available in debt service fund Amount to be provided ACCRUED BENEFITS Amount available In debt service fund Amount to be provided DUE TO OTHER GOVERNMENTS—STATE ENERGY LOAN Amount available in debt service fund Amount to be provided TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED GENERAL LONG—TERM DEBT PAYABLE Leasehold revenue bonds payable Certificates of participation payable General obligation bonds payable General obligation refunding bonds payable Accrued benefits Due to other governments—State energy loan TOTAL GENERAL LONG—TERM DEBT PAYABLE 126 $1,860,285 11,543,913 $13,404,198 403,057 3,141,943 3,545,000 3,715,000 — 3,715,000 3,788,853 3,481,147 7,270,000 491,531 491,531 93,658 93,658 $28,519,387 $13,404,198 3,545,000 3,715,000 7,270,000 491,531 93,658 $28,519,387 LE 1 STATISTICAL SECTION (Unaudited) The statistical section provides a broader understanding of the City by providing trend data and ' nonfinancial information useful in assessing the City's financial affairs. r 11 n 1 127 THIS PAGE INTENTIONALLY LEFT BLANK. 128 1 Table 1 City of Cape Girardeau, Missouri General Governmental Expenditures by Function (1) Last Ten Fiscal Years ' Fiscal Administrative Development Services Parks and Recreation Public Safety Public Works 3 Contingency Debt Service Total Year Services 1984-85 $350,086 $378,300 $826,815 $3,742,159 $2,670,119 $109,852 $166,789 $8,244,120 1985-86 500,634 517,245 906,807 3,989,507 2,750,874 1,414,776 111,014 65,367 340,419 613,532 9,116,500 8,891,656 1986-87(2) 1987-88 809,906 904,731 777,942 870,248 1,045,786 1,134,990 4,164,347 4,451,365 1,299,737 55,044 977,739 9,693,854 1988-89 938,563 972,595 1,145,262 1,177,098 4,484,535 4,770,819 1,419,112 1,462,438 30,076 42,730 992,980 1,153,562 9,983,123 10,569,134 1989-90 1990-91 950,873 985,400 1,011,614 1,248,039 1,255,895 5,263,571 1,679,583 18,403 1,798,797 12,249,688 1991-92 1,081,162 1,255,379 1,268,511 5,505,939 1,561,428 1,467,013 133,774 20,569 2,727,401 2,736,573 13,533,594 13,792,946 1992-93 1993-94 1,105,099 1,152,806 1,303,744 1,351,301 1,334,538 1,477,529 5,825,410 6,117,359 1,905,064 (4) 232,876 3,799,458 16,036,393 (1) Includes general, special revenue, and debt service funds. (2) Effective July 1, 1986 the City converted to an accrual basis of accounting. (3) Beginning with the 1986-87 fiscal year the sanitation division became the solid waste fund in the enterprise fund. (4) First year to report airport operations as a special revenue fund from previous classification as an enterprise fund. Table 2 City of Cape Girardeau, Missouri General Governmental Revenues by Source (1 Last Ten Fiscal Years (1) Includes general, special revenue, and debtservice funds. (2) Effective July 1, 1986 the City converted to an accrual basis of accounting. (3) The interdepartmental services revenue source was introduced in the 1990-1991 fiscal year. It accounts for internal services provided by the general fund and charged to capital project and enterprise funds. (4) First year to report airport operations as a special revenue fund from previous classification as an enterprise fund. t M U7�- C-_: M.- L�.:� = C- =. fes::: Licenses Charges Inter- Fines Fiscal and Inter- for departmental and Year Taxes Permits governmental Services Services (3) Forfeitures Miscellaneous Interest Total 1984-85 $5,840,252 $905,116 $1,246,161 $529,176 - $389,737 $40,206 $302,424 $9,253,072 1985-86 6,125,518 989,324 1,311,304 615,117 - 410,462 54,019 262,555 9,768,299 1986-87(2) 7,385,553 457,810 974,332 344,819 - 330,026 158,083 230,662 9,881 ,285 1987-88 7,779,480 535,380 916,155 344,242 - 310,617 150,017 405,631 10,441,522 1988-89 8,155,960 528,555 942,439 395,404 - 359,979 113,631 607,861 11,103,829 1989-90 8,977,804 529,266 1,022,901 392,708 - 393,207 153,398 661,203 12,130,487 LO 1990-91 9,782,247 578,505 1,041 ,474 389,136 $150,380 497,428 123,246 717,629 13,280,045 O 1991-92 10,111,747 649,617 1,047,869 425,402 196,777 530,768 101,095 654,111 13,717,386 1992-93 10,861,889 692,933 1,181 ,328 498,841 321,811 568,864 95,152 556,385 14,777,203 1993-94 11,594,887 741,703 1,709,722 (4) 557,611 (4) 461,434 577,296 244,699(4) 765,179 16,652,531 (1) Includes general, special revenue, and debtservice funds. (2) Effective July 1, 1986 the City converted to an accrual basis of accounting. (3) The interdepartmental services revenue source was introduced in the 1990-1991 fiscal year. It accounts for internal services provided by the general fund and charged to capital project and enterprise funds. (4) First year to report airport operations as a special revenue fund from previous classification as an enterprise fund. t M U7�- C-_: M.- L�.:� = C- =. fes::: Table 2A City of Cape Girardeau, Missouri General Governmental Tax Revenues by Source Last Ten Fiscal Years O (1) Merchant and manufacturing taxes were abolished in 1985. (2) First year of tax. (3) Includes $129,281 of protested restaurant tax that was released. Railroad Real Personal Merchant/ and Penalty - Fiscal Estate Property Spec. Business Utility Franchise Intangible Sales Cigarette Delinquent Delinquent Restaurant Hotel/Motel Year Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Total 1984-85 $505,096 $73,213 $67,356 (1) $71,053 $1,438,659 $439 $3,531,545 $136,539 $16,352 - - - $5,840,252 1985-86 508,002 99,631 11,072 63,797 1,551,439 1,762 3,738,450 137,680 13,685 - - - 6,125,518 1986-87 687,772 138,369 11,934 88,856 1,745,640 12,161 4,014,984 138,729 16,411 $10,437 $337,380 (2) $182,880 (2) 7,385,553 1987-88 702,997 143,559 12,489 87,012 1,841,046 79,846 4,192,724 142,686 23,458 12,634 337,607 203,422 7,779,480 1988-89 708,868 141,992 11,081 88,116 1,973,839 30,578 4,474,412 132,029 27,049 11,592 336,728 219,676 8,155,960 1989-90 748,681 151,091 13,683 89,514 1,982,434 49,115 5,178,744 138,468 27,463 13,172 347,168 238,271 8,977,804 1990-91 758,724 142,393 12,854 89,515 1,972,454 48,904 5,972,714 138,787 46,862 9,851 350,589 238,600 9,782,247 1991-92 784,970 185,615 12,725 93,185 2,072,360 47,772 6,114,747 130,876 34,687 12,950 373,492 248,368 10,111,747 1992-93 821,142 199,752 14,153 97,022 2,183,015 13,872 6,543,935 143,316 26,511 11,607 545,949(3) 261,615 10,861,889 1993-94 883,248 223,000 13,693 85,180 2,273,386 30,280 7,136,046 132,980 56,030 13,742 474,739 272,563 11,594,887 (1) Merchant and manufacturing taxes were abolished in 1985. (2) First year of tax. (3) Includes $129,281 of protested restaurant tax that was released. Table 3 City of Cape Girardeau, Missouri Ratio of Unreserved Fund Balance to Annual General Fund Expenditures Last Ten Fiscal Years (1) Effective July 1, 1986 the City converted to an accrual basis of accounting. (2) First year to reserve for long—term advances in the general fund. The amount of $898,713 for advances was reserved in the 1989-90 fiscal year. 132 Ratio of Unreserved Fund Unreserved General Balance to Fiscal Fund Fund General Fund Year Balance Expenditures Expenditures 1984-85 — $7,772,243 — 1985-86 — 8,410,612 — 1986-87 (1) $2,852,584 7,063,570 40.4% 1987-88 3,124,149 7,577,762 41.2 1988-80 3,088,528 7,382,098 41.8 1989-90 1,992,935 (2) 7,881,702 25.3 1990-91 2,464,301 8,714,069 28.3 1991-92 1,420,082 9,136,541 15.5 1992-93 1,990,374 9,971,064 20.0 1993-94 2,706,048 10,601,281 25.5 (1) Effective July 1, 1986 the City converted to an accrual basis of accounting. (2) First year to reserve for long—term advances in the general fund. The amount of $898,713 for advances was reserved in the 1989-90 fiscal year. 132 Table 4 City of Cape Girardeau, Missouri Property Tax Levies and Collections (1) Last Ten Fiscal Years (1) Includes general, health special revenue, and debt service funds. (2) Effective July 1, 1986 the City converted to an accrual basis of accounting. Ratio of Ratio of Total Current Percent of Delinquent Total Total Tax Outstanding Delinquent Taxes Fiscal Tax Tax Current Taxes Tax Tax Collections to Delinquent to Total Year Lev Collections Collected Collections Collections Total Tax Lew Taxes Tax Lew 1984-85 $662,228 $649,362 98.1 % $16,352 $665,714 100.5% $34,768 5.3% 1985-86 694,484 671,430 96.7 13,685 685,115 98.7 54,768 7.9 1986-87(2) 929,087 914,997 98.5 16,411 931,408 100.2 53,605 5.8 1987-88 948,762 933,568 98.4 23,458 957,026 100.9 37,768 4.0 1988-89 967,235 938,978 97.1 27,049 966,027 99.9 27,645 2.9 1989-90 1,018,061 989,286 97.2 27,463 1,016,749 99.9 31,950 3.1 u' 1990-91 1,040,879 990,631 95.2 46,862 1,037,493 99.7 39,124 3.8 w 1991-92 1,084,642 1,063,768 98.1 34,687 1,098,455 101.3 58,707 5.4 1992-93 1,136,655 1,117, 914 98.4 26,511 1,144,425 100.7 64,251 5.7 1993-94 1,216,769 1,191,429 97.9 56,030 1,247,459 102.5 39,987 3.3 (1) Includes general, health special revenue, and debt service funds. (2) Effective July 1, 1986 the City converted to an accrual basis of accounting. r+ w City of Cape Girardeau, Missouri Assessed and Estimated Actual Value of Property (1) Last Ten Fiscal Years 1 Table 6 (1) Property within the City Is assessed by the Cape Girardeau County Assessor. The Missouri Revised Statutes require property to be assessed at the following percentages of estimated appraised value: personal property, 33 1/3%; commercial real estate, 3296; residential real estate, 19%; and agricultural real estate, 12%. Currently all real estate within the City is revalued by the County Assessor every two years. (2) The estimated actual value for railroad and utilities is based upon state and local assessments of 32% for commercial real estate and 33 1/3% for personal property. Railroad Real Property Personal Property and Utilities Total Ratio of Total Assessed Value Fiscal Assessed Estimated Assessed Estimated Assessed Estimated Assessed Estimated To Total Estimated Year Value Actual Value Value Actual Value Value Actual Value (2) Value Actual Value Actual Value 1964-86 $99,920,340 $421,472,651 $13,586,410 $40,763,306 $13,844,701 $42,773,916 $127,351,451 $505,009,873 25.22% 1986-86 156,605,360 660,574,972 28,628,085 85,892,844 19,026,515 58,870,837 204259,960 805,338,653 25.36 1986-87 161,046,740 679,354,504 29,644,440 88,942,214 20,464,762 63,303,666 211,155,942 831,600,384 25.39 1987-88 165,169,530 695,638,943 29,846,401 89,548,158 20,611,933 63,749,439 215,627,864 848,936,540 25.40 1988-89 168,896,360 712,464,089 30,598,682 91,805,227 20,331,289 62,861,839 219,826,331 867,131,155 25.35 1969-90 177,847,160 758,796,447 32,833,100 98,509,151 20,697,281 63,949,694 231,377,541 921,255,292 25.12 1990-91 181,700,520 781,218,704 34,178,924 102547,027 20,683,803 63,844,663 236563,247 947,610,394 24.96 1991-92 184,638,910 800,147,228 40,378,970 121,149,025 21,491,906 66,308,774 246509,786 987,605,027 24.96 1992-93 188,596,010 817,839,873 42,075,080 126,237,863 21,918,755 68,043,238 252589,845 1,012,120,974 24.96 1993-94 195,809,200 852,174,495 45,126,875 135,394,164 17,950,900 55,617,612 258,886,975 1,043,186,271 24.82 (1) Property within the City Is assessed by the Cape Girardeau County Assessor. The Missouri Revised Statutes require property to be assessed at the following percentages of estimated appraised value: personal property, 33 1/3%; commercial real estate, 3296; residential real estate, 19%; and agricultural real estate, 12%. Currently all real estate within the City is revalued by the County Assessor every two years. (2) The estimated actual value for railroad and utilities is based upon state and local assessments of 32% for commercial real estate and 33 1/3% for personal property. Ff Table 6 City of Cape Girardeau, Missouri Property Tax Rates Direct & Overlapping Governments (1) Last Ten Fiscal Years Fiscal Year Ending June 30 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 City Tax Rates: City Revenue $0.42 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.31 $0.32 Debt Service 0.05 - 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Health 0.05 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.05 Ubrary 0.20 0.14 0.14 0.14 -0.14 0.14 0.14 0.14 0.15 0.16 Total City Tax Rate 0.72 0.48 0.58 0.58 0.58 0.58 0.58 0.58 0.60 0.63 School District 3.32 2.34 2.36 2.46 2.92 2.84 2.83 2.85 2.87 2.87 County Tax Rates: Road/Bridge 0.35 0.25 0.25 0.25 0.25 0.25 0.25 0.26 0.26 0.27 Mental Health 0.10 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 Sheltered Workshop 0.10 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 Senior Citizen - - - - - - - 0.05 0.05 0.05 County Health - 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Total County Tax Rate 0.55 0.49 0.49 0.49 0.49 0.49 0.49 0.55 0.55 0.56 State 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 Total Tax Ratio for all Overlapping Governments $4.62 $3.34 $3.46 $3.56 $4.02 $3.94 $3.93 $4.01 $4.05 $4.09 (1) All tax rates are presented per $100 of assessed valuation. 135 Taxpayer West Park Associates Dana Corporation Biokyowa Incorporated Lone Star Industries Cape Girardeau Cement, Inc. Drury Development Co. Mid—America Hotels Wal—Mart Stores, Inc. Cape Retirement Community, Inc. Cape LaCroix Associates City of Cape Girardeau, Missouri Principal Taxpayers June 30, 1994 Type of Business Retail leasing Auto part manufacturer Animal feed additive manufacturer Cement manufacturer Cement manufacturer Land development Hotel industry Retail discount store Retirement homes Retirement homes 136 1993 Asse sse d Valuation $5,425,760 4,838,530 4,140,110 3,340,780 2,659,760 2,455,100 2,317,990 2,184, 355 1,408,300 1,341,930 $30,112,615 Table 7 Percentage of Total Assessed Valuation 2.10% 1.87 1.60 1.29 1.03 0.95 0.90 0.84 0.54 0.52 11.64% I City of Cape Girardeau, Missouri Computation of Legal Debt Margin June 30, 1994 Assessed Value Legal Debt Margin: Debt limitation -20 percent of total assessed value Debt applicable to limitation: Total bonded debt Less: Revenue bonds Debt service available for repayment of general obligation bonds Amount available from escrow account for repayment of general obligation bonds Total debt applicable to limitation Legal Debt Margin 137 Table 8 $258,886,975 $51,777,395 $27,100,000 16,115,000 269,498 7,090,000 3,625,502 $48,151,893 U Table 9 City of Cape Girardeau, Missouri Ratio of Net General Obligation Bonded Debt To Assessed Value and Net General Obligation Bonded Debt Per Capita Last Ten Fiscal Years (1) Data provided by the Missouri Census Data Center. Fiscal year 1990 is based on the U.S. Census Bureau 1990 final census. Other years are based on Bureau of the Census local population estimate reports. (2) From Table 5. (3) Gross bonded debt does not include revenue bonds. (4) Amount available to service the general obligation bonds. (5) Proceeds from the 1987 General Obligation Refunding Bonds held through an Escrow Agreement will be used to retire the remaining $3,510,000 of the 1984 Public Building Serial Bonds after principal payment on November 1, 1994. Proceeds from the 1993 General Obligation Refunding Bonds held through an Escrow Agreement will be used to retirethe $3,580,000 outstanding principal of the 1987 General Obligation Refunding Bonds on November 1, 1994 138 Ratio of Net Bonded Gross Less Debt Debt Payable Net Debt to Net Bonded Fiscal Assessed Bonded Service from Escrow Bonded Assessed Debt per Year Population (1) Value Debt 3 Fund(4) Account (5) Debt Value Capita 1984-85 34,391 $127,351,451 $5,145,000 $225,257 — $4,919,743 3.86% $143 1985-86 34AW 204,259,960 4,895,000 18,922 — 4,876,078 2.39 142 1988-87 34,360 211,155,942 4,780,000 379,805 — 4,400,195 2.08 128 1987-88 34260 215,627,864 8,240,000 213,857 $3,510,000 4,516,143 2.09 132 1988-89 34,260 219,826,331 8,110,000 433,777 3,510;000 - 4,166,223 1.90 122 1989-90 34,438 231,377,541 7,970,000 550,603 3,510,000 3,909,397 1.69 114 1990-91 34,438 236,563247 7,820,000 558,832 3,510,000 3,751,168 1.59 109 1991-92 35,047 246,509,786 7,660,000 598,376 3,510,000 3,551,624 1.44 101 1992-93 35,047 252,589,845 11,175,000 409,461 7,090,000 3,675,539 1.46 105 1993-94 35,500 258,886,975 10,985,000 269,498 7,090,000 3,625,502 1.40 102 (1) Data provided by the Missouri Census Data Center. Fiscal year 1990 is based on the U.S. Census Bureau 1990 final census. Other years are based on Bureau of the Census local population estimate reports. (2) From Table 5. (3) Gross bonded debt does not include revenue bonds. (4) Amount available to service the general obligation bonds. (5) Proceeds from the 1987 General Obligation Refunding Bonds held through an Escrow Agreement will be used to retire the remaining $3,510,000 of the 1984 Public Building Serial Bonds after principal payment on November 1, 1994. Proceeds from the 1993 General Obligation Refunding Bonds held through an Escrow Agreement will be used to retirethe $3,580,000 outstanding principal of the 1987 General Obligation Refunding Bonds on November 1, 1994 138 Fiscal Year 1984-85 1985-86 1986-87 1987-88 1988-89- 1989-90 1990-91 1991-92 1992-93 1993-94 Principal City of Cape Girardeau, Missouri Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt (1) to Total General Governmental Expenditures Last Ten Fiscal Years Interest (2) $128,427 258,032 497,760 483,660 468,660 452,460 435,060 416,460 396,360 377,073 Total Debt Service $258,427 508,032 612,760 603,660 598,660 592,460 585,060 576,460 571,360 567,073 Total General Governmental Expenditures (3) $8,244,120 9,916,500 8,891,656 9,693,854 9,983,123 10,569,134 12,249,688 13,533,594 13,792,946 16,036,393 Table 10 Ratio of Debt Service to General Governmental Expenditures 3.1% 5.6 6.9 6.2 6.0 5.6 4.8 4.3 4.1 3.5 (1) Debt defeasance transactions from the general obligation refunding bonds have been excluded. (2) Excludes bond issuance and other costs. (3) Includes general, special revenue, and debt service funds. 139 Table 11 City of Cape Girardeau, Missouri Computation of Direct and Overlapping Bonded Debt General Obligation Bonds June 30, 1994 Net General Percentage Obligation Applicable Amount Bonded Debt to Applicable Jurisdiction Outstanding Government to Government Direct: City of Cape Girardeau $3,625,502 100.00% $3,625,502 Overlapping: School District — — County — — Total $3,625,502 $3,625,502 140 City of Cape Girardeau, Missouri Revenue Bond Coverage Sewer Fund Last Ten Fiscal Years Net Revenue Fiscal Gross Operating Available for Year Revenues (1) Expenses (2) Debt Service 1984-85 - - - 1985-86 - - - 1986-87 $1,605,344 $788,172 $817,172 1987-88 1,279,805 902,246 377,559 1988-89 1,347,010 922,194 424,816 1989-90 1,545,702 951,870 593,832 1990-91 2,216, 204 1,159,386 1,056,818 1991-92 1,982,273 1,022,360 959,913 1992-93 2,268,065 1,016,684 1,251,381 1993-94 2,478,541 1,065,927 1,412,614 (1) Total revenues (including interest) exclusive of tap fees. (2) Total operating expenses exclusive of depreciation. 141 Debt Service Requirements Principal Interest Total $25,000 $111,798 $136,798 25,000 109,548 134,548 30,000 107,298 137,298 30,000 104,597 134,597 35,000 101,897 136,897 40,000 181,935 221,935 45,000 261,721 306,721 20,000 208,574 228,574 Table 12 Coverage 5.97 2.81 3.09 4.41 7.72 4.33 4.08 6.18 City of Cape Girardeau, Missouri Revenue Bond Coverage Water Fund (1) Last Ten Fiscal Years (1) The water utility system was purchased on June 3, 1992. (2) Total revenues (including interest) exclusive of tap fees. (3) Total operating expenses exclusive of depreciation. 142 Debt Service Requirements Principal Interest Total - $667,414 $667,414 $25,000 760,345 785,345 Table 13 Coverage 1.91 1.37 Net Revenue Fiscal Gross Operating Available for Year Revenues (2) Expenses (3) Debt Service 1984-85 - - - 1985-86 - - - 1986-87 - - - 1987-88 - - - 1988-89 - - - 1989-90 - - - 1990-91 - - - 1991-92 - $316,400 $346,271 ($29,871) 1992-93 3,520,448 2,242,601 1,277,847 1993-94 3,634,153 2,556,518 1,077,635 (1) The water utility system was purchased on June 3, 1992. (2) Total revenues (including interest) exclusive of tap fees. (3) Total operating expenses exclusive of depreciation. 142 Debt Service Requirements Principal Interest Total - $667,414 $667,414 $25,000 760,345 785,345 Table 13 Coverage 1.91 1.37 n City of Cape Girardeau, Missouri Demographic Statistics Last Ten Fiscal Years (1) From Table 9. (2) Data provided by the Missouri Census Data Center. Fiscal year 1990 is based on the U.S. Census Bureau 1990 final census. Other years are based on Bureau of the Census per capita estimate reports. (3) Data provided by the Cape Girardeau Public Schools for grades K-12. (4) Data provided by the Missouri Division of Employment Security - Research and Analysis Department. 143 Table 14 Per Public Fiscal Capita School Unemployment Year Population (1) Income (2) Enrollment (3) Rate 4 1984-85 34,391 $8,822 4,148 5.6% 1985-86 34,360 10,130 4,183 5.0 1986-87 34,360 10,130 4,239 5.1 1987-88 34,260 11,118 4,340 5.2 1988-89 34,260 11,118 4,335 4.8 1989-90 34,438 12,254 4,332 6.1 1990-91 34,438 12,254 4,418 6.7 1991-92- 35,047 14,454 4,369 6.1 1992-93 35,047 14,454 4,498 6.5 1993-94 35,500 15,300 4,423 4.7 (1) From Table 9. (2) Data provided by the Missouri Census Data Center. Fiscal year 1990 is based on the U.S. Census Bureau 1990 final census. Other years are based on Bureau of the Census per capita estimate reports. (3) Data provided by the Cape Girardeau Public Schools for grades K-12. (4) Data provided by the Missouri Division of Employment Security - Research and Analysis Department. 143 Table 14 City of Cape Girardeau, Missouri Property Value and Construction Last Ten Fiscal Years Table 15 Residential Construction (2) Property Value (1) Nonresidential Value 238 $5,778,145 317 8,831,988 Construction (2) Fiscal 307 9,251,568 338 12,067,087 Nu mbar of 8,318,426 Year Agricultural Residential Commercial Total units Value 1984-85 $1,582,075 $266,419,179 $153,471,397 $421,472,651 110 $10,405,128 1985-86 2,479,583 417,559,342 240,536,047 660,574,972 85 13,983,825 1986-87 2,640,167 429,374,368 247,339,969 679,354,504 111 10,190,401 1987-88 2,008,917 438,716,526 254,913,500 695,638,943 122 _ 10,298,895 1988-89 1,926,825 451,590,642 258,946,622 712,464,089 137 12,924,054 1989-90 1,856,833 496,894,895 260,044,719 758,796,447 137 12,648,884 1990-91 1,935,917 522,325,368 256,957,419 781,218,704 149 17,252,328 1991-92 8,180,334 536,708,737 255,258,157 800,147,228 162 23,142,653 1992-93 10,349,417 546,489,737 261,004,719 817,839,873 221 34,566,959 1993-94 9,913,250 576,184,526 266,076,719 852,174,495 211 18,654,671 Table 15 Residential Construction (2) Number of units Value 238 $5,778,145 317 8,831,988 438 12,273,129 307 9,251,568 338 12,067,087 143 8,318,426 147 8,373,182 209 8,553,435 245 13,429,310 253 14,545,917 (1) Estimated actual value from Table 5. (2) Source: Based on building permits used on a calendar year basis by the office of Planning Services in which values are estimates of the cost of construction provided at the time of permit issuance. 144 n D LI 145 City of Cape Girardeau, Missouri Miscellaneous Statistics June 30, 1994 Table 16 Date of Incorporation 1806 Form of Government Councll/Manager Number of employees (excluding police and fire): Classified 227 Exempt 25 Area In square miles 24,4 Miles of streets 1981 City of Cape Girardeau facilities and services: Cufture and Recreation: Parks 24 Park acreage 616 Golf courses 1 Swimming pools 2 Libraries 1 Convention facilities 1 Fie Protection: Number of stations 4 Number of fire personnel and officers 58 Number of emergency response calls 2,155 Number of inspections conducted 405 Police Protection: Number of stations 1 Number of police personnel and officers 87 Number of law violations: Adult arrests 2,117 Traffic summonses 4,239 Parking violations 1,973 Sewerage System: Miles of sanitary sewers Number of treatment plants 183.4 Daily average Yeatment in million gallons 1 4.5 Maximum daily capacity of treatment plant in million gallons 17,5 Water System: Average number of customers 13,000 Miles of water mains 2124 Number of new service connections 286 Number of fire hydrants Daily average consumption in million gallons 1,110 4.6 Maximum daily capacity of plants in million gallons 7,3 Facilfties and services not included in the reporting entity: Education: Number of elementary schools Public 6 Private 4 Number of elementary public school instructors 160 Number of secondary schools Public 1 Private 1 Number of secondary public school Instructors 138 Number of universities 1 Hospitals: Number of hospftais 2 Number of patient beds 545 D LI 145 THIS PAGE INTENTIONALLY LEFT BLANK. 146 SINGLE AUDIT SECTION 147 I Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 334-2845 - FAX (314) 334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNIFER WESTRICH TERRY R. BEGLEY, CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF KELVIN W. BIRK, CPA FEDERAL FINANCIAL ASSISTANCE Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the general purpose financial statements of the City of -Cape Girardeau, Missouri for the year ended June 30, 1994, and have issued our report thereon dated October 19, 1994. These general purpose financial statements are the responsibility of City of Cape Girardeau, Missouri's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Cape Girardeau, Missouri taken as a whole. The accompanying schedule of federal financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our Gpinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. Cape Girardeau, Missouri October 19, 1994 149 Non -Major Programs: City of Cape Girardeau, Missouri Department of Transportation SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Federal Aviation Administration June 30, 1994 Air Traffic Services 401,610 167,269 167,269 Passed through Missouri Department of Public Safety Federal Cape Girardeau County Community CFDA Program Balance Revenue Disbursements/ Balance Federal Grantor/Pass-Through Grantor/Title Number Amount July 1, 1993 Recognized Expenditures June 30, 1994 Major Programs: 20.600 104,135 47,990 68,171 ( 20,181) Passed Through the Missouri Highway and Transportation Department Department of Transportation Off -System Bridge Replacement and Rehabilitation Program Federal Aviation Administration Hopper Road Bridge - Project BRO-BRM-016(18) 20.205 32,608 26,384 Airport Improvement Program 3.29-0013-02 20.106 456,611 ( 28,952) 196,039 196,558 ( 29,471) Airport Improvement Program 3-29.0013.04 20.106 530,957 ( 60,582) 229,217 254,685 ( 86,050) Airport Improvement Program 3.29.0013.05 20.106 428,499 ( 601,006) 1,339 3,442 ( 603,109) Airport Improvement Program 3-29-0013.07 20.106 282,289 ( ) 116,886 145,264 ( 28,378) Total Department of Transportation . Major Programs ( 690,540) 543,481 599,949 ( 747,008) Department of Housing and Urban Development Passed through Missouri Department of Economic Development Community Development Block Grant 93 -EM -10 14.219 105,000 ( ) 51,933 64,695 ( 12,762) 92 -ND -16 14.219 460,000 ( 443,259) 152,284 451,400 ( 742,375) Total - HUD . Major Programs ( 443,259) 204,217 516,095 ( 755,137) Department of the Interior V� Federal Emergency Management Agency Emergency Assistance 83.516 362,898 373,091 (10,193) Total U.S. Department of Interior 362,898 373,091 (10,193) Total - Major Programs (1,133,799) 1,110,596 1,489,135 (1,512,338) Non -Major Programs: Department of Transportation Federal Aviation Administration Air Traffic Services 401,610 167,269 167,269 Passed through Missouri Department of Public Safety Cape Girardeau County Community Traffic Safety Program (FY'93) 20.600 89,930 ( 26,847) 28,093 43,293 ( 42,047) Cape Girardeau County Community Traffic Safety Program (FY'94) 20.600 104,135 47,990 68,171 ( 20,181) Passed Through the Missouri Highway and Transportation Department Off -System Bridge Replacement and Rehabilitation Program Hopper Road Bridge - Project BRO-BRM-016(18) 20.205 32,608 26,384 41,062 ( 14,678) Public Taxi Coupon Transportation Program MO.18-X013.4CG 20.509 72,861 ( 1,024) 62,865 208,569 ( 146,728) MO-18•X014-4CG 20.509 75,007 165 ( 165) Total U.S. Department of Transportation - Non -Major Programs ( 27,871) 332,601 528,529 ( 223,799) X10► Cr.: =_Z a-_ = City of Cape Girardeau, Missouri SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE 1 June 30, 1994 Federal CFDA Program Balance Revenue Disbursements/ Balance Federal Grantor/Pass-Through Grantor/Title Number Amount July 1, 1993 Recognized Expenditures June 30, 1994 Department of Defense U.S. Army Corps of Engineers 12.106 $ $(6,460,278) 249,836 $(6,710,114) Flood Control Project (6,460,278) 249,836 (6,710,114) Total U.S. Department of Defense Department of Housing and Urban Development Passed through Missouri Department of Economic Development Community Development Block Grant 171,070 ( 4,672) 23,500 29,335 ( 10,507) Rental Rehab R91 -SC -29.0103 14.230 Passed through Missouri Department of Social Services 5,000 5,000 5,000 Emergency Shelter Grant 14.231 ( 4,672) 28,500 34,335 ( 10,507) Total [IUD - Non -Major Programs Department of Education Passed through Missouri Department of Education V1 Passed through Cape Girardeau Public Schools 84.186 8,000 - 8,000 14,071 ( 6,071) F-' Drug Free Schools Program Passed through Missouri State Library 84.034A 28,377 28,161 33,231 ( 5,070) Homework and Literacy Grant 36,161. 47,302 ( 11,141) Total Department of Education Department of Justice Passed through Missouri Department of Public Safety 16.575 5,700 ( 771) 1,932 2,318 ( 1,157) Victims of Crime Act (FY'93) 16.575 5,700 4,10E 5,176 ( 1,068) Victims of Crime Act (FY'94) Total U.S. Department of Justice ( 771) 6,040 7,494 ( 2,225) Environmental Protection Agency Passed Through Missouri Department of Natural Resources 33,962 5,101 5,101 094 CSO -02 Total U.S. Department of Interior 5,101 5,101 ( ) (6,493,592) 408,403 872,597 (6,957,786) Total Non -Major Programs TOTAL FEDERAL FINANCIAL ASSISTANCE (7,627,391) 1,518,999 2,361,732 (8,470,124) m Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 334-2845 - FAX (314) 334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNIFER WESTRICH TERRY R. BEGLEY, CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA KELVIN W. BIRK, CPA INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the general purpose financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1994, and have issued our report thereon dated October 19, 1994. We conducted our audit in accordance with generally accepted auditing standards, Government Auditina Standards, issued by the Comptroller General of the United States and the provisions of OMB Circular A-128 "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1994, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Cape Girardeau, Missouri is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because 152 J INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS - CONTINUED of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories. General Petty cash Bank accounts Cash receipts Cash disbursements Investments Revenues and receivables Property and equipment Purchasing, receiving and accounts payable Payrolls Budget Electronic data processing For all of the control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. We noted a matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgement, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. The water system inventory is owned by the City but is maintained by an outside contractor. The level of water system inventory is much more significant than other inventories that the City has maintained in the past. The initial water system inventory that the City started the system with was $163,674, consisting mainly of supplies purchased from Union Electric. The outside contractor is obligated to maintain that level ($163,674) of inventory in the event that the City assumes management of the water system. Last year, the City did not receive any reports from the outside contractor pertaining to up-to-date inventory levels. This year, the City did receive a report of the count of the parts inventory but did not receive a report of the count of the chemical inventory. Also, the City staff did not perform any procedures to 153 T INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS - CONTINUED spot-check the records provided by the outside contractor. A problem is created in that the City does not know whether its current supplies expense is entirely accurate because it is not known whether the inventory level has been increased or decreased. Also, it is not known whether the inventory level shown on the financial statements is entirely accurate. We recommend, at a minimum, that the outside contractor provide City personnel with detailed documentation of the entire inventory count as of each June 30, and that City personnel have access to the actual inventory and perform procedures to spot-check the outside contractor's records. Ideally, the outside contractor should maintain a computerized, perpetual inventory system to account for the water system inventory. Also, ideally, City personnel would be provided with detail of current inventory levels on a monthly basis and City personnel would spot-check the outside contractor's records on at least an annual basis. Such a system could be maintained on a stand-alone personal computer and need not be integrated with the City's mainframe computer system. Several software packages are available that will adequately handle this task. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amount that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe none of the reportable conditions described above is a material weakness. This report is intended for the information of the City Council and w management of the City of Cape Girardeau, Missouri. This restriction is not intended to limit the distribution of this report, which is a matter of public record. Y+�. I � 0.1 Cape Girardeau, Missooufi October 19, 1994 154 L, D 11 PARTNERS Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 3342845 - FAX (314) 334-4338 JOHN R. JANSSEN. CPA JENNIFER WESTRICH TERRY R. BEGLEX CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA KELVIN W. BIRK, CPA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS 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 the general purpose financial statements of the City of Cape Girardeau, Missouri as of and for the year ended June 30, 1994, and have issued our report thereon dated October 19, 1994. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of.Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Cape Girardeau, Missouri is the responsibility of the City of Cape Girardeau, Missouri's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the City of Cape Girardeau, Missouri, complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. This report is intended for the information of the City Council and management of the City of Cape Girardeau, Missouri. This restriction is not intended to limit the distribution of this report, which is a matter of public record. Cape irardeau, MisssoiYri p 155 October 19, 1994 Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 334-2845 - FAX (314) 334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNIFER WESTRICH TERRY R. BEGLEY, CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA KELVIN W. BIRK, CPA INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the general purpose financial statements of the City of Cape Girardeau, Missouri, for the year ended June 30, 1994, and have issued our report thereon dated October 19, 1994. We have also audited the City of Cape Girardeau, Missouri's compliance with requirements applicable to major federal financial assistance programs and have issued our report thereon dated October 19, 1994. we conducted our audits in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City of Cape Girardeau, Missouri, complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing our audits for the year ended June 30, 1994, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements and on its compliance with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated October 19, 1994. The management of City of Cape Girardeau, Missouri, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The 156 R J W INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING N FEDERAL FINANCIAL ASSISTANCE PROGRAMS - CONTINUED objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: Accounting Applications Billings Cash receipts Purchasing and receiving Accounts payable Cash Disbursements Payroll General Requirements Political activity Davis -Bacon Act Civil rights Relocation assistance and real property acquisition Federal financial reports Allowable costs/cost principles Drug-free workplace Administrative requirements Specific ReQuirements Types of services Matching, level of effort, and earmarking Reporting Special tests and Provisions Fi 1 157 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS - CONTINUED] Claims for Advances and reimbursements Amounts Claimed or Used for Matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they had been placed in operation, and we assessed control risk. During the year ended June 30, 1994, the City of Cape Girardeau, Missouri, expended 63% of its total federal financial assistance under major federal financial assistance programs. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of the City's major federal financial assistance programs, which are identified in the accompanying schedule of federal financial assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted a matter, unrelated to the administration of federal financial assistance programs, involving the internal control structure and its operation that we have reported to the management of the City of Cape Girardeau, Missouri, in a separate letter dated October 19, 1994. u 158 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS - CONTINUED This report is intended for the information of the City Council and management of the City of Cape Girardeau, Missouri. This restriction is not intended to limit the distribution of this report, which is a matter of public record. 0I I Cape Girardeau, Missouri w October 19, 1994 U, 0 4 0 159 Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 334-2845 - FAX (314) 334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNIFER WESTRICH TERRY R. BEGLEY, CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA KELVIN W. BIRK, CPA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the general purpose financial statements of the City of Cape Girardeau, Missouri as of and for the year ended June 30, 1994, and have issued our report thereon dated October 19, 1994. we have applied procedures to test the City of Cape Girardeau, Missouri's compliance with the followingrequirements applicable to its federal financial assistance programs, which are identified in the schedule of federal financial assistance, for the year ended June 30, 1994: political activity, Davis -Bacon Act, civil. rights, relocation assistance and real property acquisition, federal financial reports, allowable costs/cost principles, Drug -Free workplace Act and administrative requirements. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments". Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Cape Girardeau, Missouri's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Cape Girardeau, Missouri, had not complied, in all material respects, with those requirements. Also, the results of our audit procedures did not disclose any immaterial instances of noncompliance with those requirements. This report is intended for the information of the City Council and management of the City of Cape Girardeau, Missouri. This restriction is not intended to limit the distribution of this report, which is a matter Qof public record. Cape Girardeau Missouri P , October 19, 1994 160 I R W r. F1 Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 334-2845 - FAX (314) 334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNIFER WESTRICH TERRY R. BEGLEY, CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA KELVIN W. BIRK, CPA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the general purpose financial statements of the City of Cape Girardeau, Missouri as of and for the year ended June 30, 1994, and have issued our report thereon dated October 19, 1994. We have also audited the City of Cape Girardeau, Missouri's compliance with the requirements governing types of services allowed or unallowed; matching, level of effort, or earmarking; reporting; special tests and provisions; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs, which are identified in the accompanying schedule of federal financial assis-tance, for the year ended June 30, 1994. The management of the City of Cape Girardeau, Missouri, is responsible for the City of Cape Girardeau, Missouri's, compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the City of Cape Girardeau, Missouri's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. The results of our audit procedures did not disclose any immaterial instances of noncompliance with the requirements referred to above. In our opinion, the City of Cape Girardeau, Missouri complied, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, or earmarking; reporting; various special tests and provisions; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs for the year ended June 30, 1994. 161 n INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS - CONTINUED_] This report is intended for the information of the City Council and management of the City of Cape Girardeau, Missouri. This restriction is not intended to limit the distribution of this report, whi h isa atter fT ,ublic record. g �0. Cape Girardeau, Missouri October 19, 1994 n 162 J G Begley, Janssen, Young & Birk CERTIFIED PUBLIC ACOUNTANTS 2103 THEMIS ST. - CAPE GIRARDEAU, MISSOURI 63701 - TELEPHONE (314) 334-2845 - FAX (314) 334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNIFER WESTRICH TERRY R. BEGLEY, CPA GRADY S. MARTIN LAWRENCE E. YOUNG, CPA KELVIN W. BIRK, CPA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have audited the general purpose financial statements of the City of -Cape Girardeau, Missouri as of and for the year ended June 30, 1994, and have issued our report thereon dated October 19, 1994. In connection with our audit of the 1994 general purpose financial statements of the City of Cape Girardeau, Missouri, and with our consideration of the City of Cape Girardeau, Missouri's internal control structure used to administer federal financial assistance programs, as required by Office of Management and Budget Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended June 30, 1994. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed; matching, level of effort, or earmarking; reporting; and special tests that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of. Cape Girardeau, Missouri's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Cape Girardeau, Missouri, had not complied, in all material respects, with those requirements. Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements. This report is intended for the information of the City Council and management of the City of Cape Girardeau, Missouri. This restriction is not intended to limit the distribution of this report, which is a matter of public record. U Cape Girardeau, Missouri October 19, 1994 163 THIS PAGE INTENTIONALLY LEFT BLANK. 164 4 u q q