HomeMy Public PortalAbout2012 AuditMember American Institute of
Certified Public Accountants
BRUCE D. CULLEY, C.P.A., P.C.
3000 BROOKTREE LANE, SUITE 210
GLADSTONE, MISSOURI 64119
816-453-1040 FAX: 816-453-0721
bruceculley@sbcglobal.net
CITY OF PARKVILLE, MISSOURI
AUDITED FINANCIAL STATEMENTS
Member Missouri Society of
Certified Public Accountants
FOR THE YEAR ENDED DECEMBER 31, 2012
CITY OF PARKVILLE, MISSOURI
TABLE OF CONTENTS
Independent Auditor.'s Report ..................................................................................................... 1 - 2
Management's Discussion and Analysis ..................................................................................... 3 - I I
Basic Financial Statements
Government-wide Financial Statements
Statement ofNet Assets .................................................................................................. 12
Statement of Activities ................................................................................................... 13
Fund Financial Statements
Governmental Funds
Balance Sheet .......................................................................................................... I 4
Reconciliation of the Balance Sheet of the Governmental Funds to the
Statement of Net Assets ..................................................................................... 15
Statement of Revenues, Expenditures and
Changes in Fund Balances -Governmental Funds ........................................... I 6 -17
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ................................................................................ I 8
Proprietary Funds
Statement of Net Assets ........................................................................................... 19
Statement of Revenues, Expenditures and Changes in Fund Ba!ances .................... 20
Statement of Cash Flows .......................................................................................... 2 I
Notes to Basic Financial Statements ..................................................................................... 22 -50
Required Suppleme~tary Information ......................................................................................... 5 I -56
Other Supplementary Information
Combining and Individual Fund Statement Schedules
Combining Balance Sheet -Nonmajor Governmental Funds ........................................ 57 -58
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances -Nonmajor Governmental Funds ............................................................. 59 -60
BRUCE D. CULLEY C.P.A., P.C.
3000 Brooktree Lane, Suite 210
Gladstone, MO. 64119
816-453-1040 Fax: 816-453-0721
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Board of Aldermen
City of Parkville, Missouri
I have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of
the City of Parkville, as of and for the year ended December 31, 2012, and the related notes
to the financial statements, which collectively comprise the City's basic financial statements
as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
My responsibility is to express opinions on these financial statements based on my audit. I
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that Iplan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, I express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
I
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my audit opinions.
Opinions
In my opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Parkville, Missouri, as of December 31, 2012, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementmy l!iformation
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information on pages 3 -
11 and 51 -55 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or
historical context. I have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to
my inquiries, the basic financial statements, and other knowledge I obtained during my audit
of the basic financial statements. I do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Gladstone, Missouri
August l, 2013
~----(Aw~ ce Culley
Certified Public Account
2
CITY OF PARKVILLE, MISSOURI
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Parkville, we offer readers of the City of Parkville' s financial
statements this narrative overview and analysis of the financial activities of the City of
Parkville for the fiscal year ended December 31, 2012. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished
in our letter of transmittal.
Financial Highlights
I. The assets of the City exceeded its liabilities at the close of the most recent fiscal year
by $7,929,742 (net assets).
2. The government's total net assets increased by $779,720. The net assets increase is
found in governmental activities where there is a positive $598,251 net change, and a
positive $181,469 change in net assets reported in business-type activities.
3. As of the close of the current fiscal year, the City's governmental funds reported
combined ending fund balances of $4,787,911, an increase of $976,934 from the prior
year. The receipt of funds from a legal settlement ($1,075,012) and a refund of costs
($80,250) connected with the Highway 9 bridge construction was responsible for the
increase.
4. At the end of the current fiscal year, fund balance for the general fund was $542,597,
or approximately 14% of total 2012 general fund expenditures.
5. The City's total debt decreased by $468,420, (3.1 %) during the fiscal year.
6. The City expended $176,422 on capital equipment for the City and $548,281 for
Brink Myers Road and Brush Creek Sewer including interest that was capitalized.
7. The City refinanced the temporary notes on Brink Myers Road and Brush Creek
Sewer adding an additional $145,000 to the temporary notes.
8. The City's proprietary fund showed an increase in net assets of$181,469.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements comprise three components;
government-wide financial statements (Pages 12 through 13), fund financial statements
(Pages 14 through 18), and notes to the financial statements beginning on Page 22. This
report also contains other supplementary information in addition to the basic fmancial
statements themselves.
3
Government-wide Financial Statements. The government-wide financial statements (Pages
12 -13) are designed to provide readers with a broad overview of the City's finances, in a
manner similar to a private-sector business.
The statement of net assets (Page 12) presents information on all of the City's assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the
City is improving or deteriorating.
The statement of activities (Page 13) presents information showing how the government's net
assets changed during the most recent fiscal year. All changes in net assets are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items
that will only result in cash flows in future fiscal periods (e. g., uncollected taxes and earned
but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities). The governmental activities of the
City include general government, public safety, streets, economic development, and culture
and recreation. The business-type activities of the City include sewer service.
Fund Financial Statements. A jimd is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives.
The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into two categories: governmental funds and proprietary funds.
Govem111e11tal Funds. Governmental jimds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental fimds
with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
government's near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental jimds and
governmental activities.
4
The City maintains four individual major or governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the general fund, transportation
special revenue fund, capital projects fund, and debt service fund, each of which are
considered to be major funds. Data from the other twelve governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on Pages 14 through 18 of
this report.
Proprietary F1111ds. The City maintains one type of proprietary fund. Enterprise fimds are
used to report the same functions presented as business-type activities in the government
wide financial statements. The City uses enterprise funds to account for its sewer service
operations.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund is a major fund of the City.
The basic proprietary fund financial statements can be found on Pages 19 through 21 of this
report.
Notes to the Financial Statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements. The notes to the financial statements can be found on Pages 22 through
50 of this report. .
Other Information. In addition to the basic financial statements and accompanying notes,
this report presents certain required supplemental i1iformation concerning the City's
infrastructure reporting. As recommended by American Public Works Association, the
modified approach for infrastructure was developed as a compromise to provide an
alternative to depreciating eligible infrastructure assets. The basic premise behind the
modified approach is that no depreciation is incurred if infrastructure assets are being
maintained or preserved at a certain level. The City provides an up-to-date inventory of
eligible assets by location, type and physical parameters and performs replicable condition
assessments, triennially. Results are summarized using a measurement scale, seen on Pages
52 -53 of this report. Estimated amounts needed to maintain and preserve these assets at the
City's established service level are budgeted for annually.
The combining and individual fund statements referred to earlier in connection with non
major or governmental funds are presented on Pages 56 through 60 of this report.
5
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a usefol indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $7,929,742 at the
close of the most recent fiscal year.
Governmental Activities. Governmental activities increased the City's net assets by
$598,251.
Business-type Activities. The change in net assets for business-type activities increased net
assets by $181,469. The net assets for business-type activities in the current fiscal year are
$3,255,446.
Financial Analysis of the Government's Funds
As noted earlier, the City uses fond accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Gover11me11tal fimds. The focus of the City's governmental fimds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is
usefol in assessing the City's financing requirements. In particular, unreserved fond balances
may serve as a usefol measure of a government's net resources available for spending at the
end of the fiscal ye·ar.
As mentioned earlier in this analysis, at the end of the current fiscal year, the City's
governmental fonds reported combined ending fond balances of $4,787,911. Of that,
$2,818,583 is non-spendable, restricted or assigned for various purposes.
The general fond is the chief operating fond of the City. At the end of the current fiscal year
the general fond balance was $542,597. As a measure of the general fond's liquidity, it is
usefol to compare both unreserved fond balance to total fond expenditures. Unreserved,
undesignated fond balance represents 13 % of total general fond expenditures.
The City's fond balance of the general fond decreased by $60,579 during the current fiscal
year. The City's 2012 revenues and transfers in from other fonds totaled $4,283,985 which is
$387,149 higher than 2011. The City's 2012 expenses and transfers out to other fonds totaled
$4,316,256, which is $419,420 higher than the prior year.
The debt service fond has a total fond balance of $1,041,538, all of which is reserved for the
payment of debt service. There was a net increase in the debt service fond balance of
$II 0,599. Expenses in the debt service fond exceeded revenue by $103,40 I. This was offset
by transfers to the debt service fond of $214,000.
The capital projects fond has a total fond balance of $57,141. There were considerable
expenditures on capital projects during the year on Brink Myers Road. The notes payable in
connection with Brink Myers Road and Brush Creek Sewer were refinanced during the year.
The reason for the decline in fond balance was the increase in capital expenditures.
6
The City uses capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City's investment in its capital assets is reported
net ofrelated debt, it should be noted that the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Current and
CITY OF PARKVILLE, MISSOURI
NET ASSETS SUMMARY
DECEMBER 31, 2012 AND 2011
Governmental Activities Business~type Activities
2012 2011 2012 2011
Total
2012 2011
Other Assets
Capital Assets
$ 6,726,871 $ 5,781,039 $ 1,376,562 $ 1,086,971 $ 8,103,433 $ 6,868,010
20, 148,467
27,016,477
15,294,658 15,973,693 3,919,507 4,174,774 19,214,165
Total Assets 22,02 I ,529 2 I, 754, 732
Bonds and Notes
Outstanding
Other Liabilities
Total Liabilities
Net Assets
15,415,214
1,932,019
17,347,233
Invested in Capital Asset: I 20,556
Restricted I ,644, I 98
Unrestricted 2,909,542
15,732,015
1,946,672
17,678,687
241,678
1,929,825
1,904,542
5,296,069
1,992,127
48,496
2,040,623
1,927,380
28,338
1,299,728
5,261,745
2,136,721
51,047
2, 187,768
2,038,053
28,338
1,007,586
27,317,598
17,407,341
1,980,515
19,387,856
2,047,936
1,672,536
4,209,270
I 7,868,736
1,997,719
19,866,455
2,279, 731
1,958, 163
2,912,128
Total Net Assets $ 4,674,296 $ 4,076,045 $ 3,255,446 $ 3,073,977 $ 7,929,742 $ 7,150,022
7
CITY OF PARKVILLE
STATEMENT OF ACTIVITIES SUMMARY
FOR THE YEARS ENDED DECEMBER31, 2012 AND 2011
Governmental Activities Business-txEe Activities Total
2012 2011 2012 2011 2012 2011
Program Revenues
Charges for Services $ 558,668 $ 343,913 $ 1,026, 169 $ 947,588 $ 1,584,837 $ 1,291,501
Operating Grants and
Contributions 56,650 8,076 56,650 8,076
Capital Grants and
Contributions 443,229 446,314 35,998 443,229 482,312
General Revenues
Property Taxes 1,378,901 1,314,778 1,378,901 1,314,778
Franchise Taxes 834,696 898,765 834,696 898,765
Sales Taxes 1,461,532 1,549,084 1,461,532 1,549,084
Investment Earnings 57,930 76,726 57,930 76,726
Intergovernmental 58,582 41,992 58,582 41,992
Se\ver Admin Fee 75,000 70,000 75,000 70,000
TlF 419,707 458,121 419,707 458,121
FEMA 217,450 217,450
Other 193,023 133,290 6,611 199,634 133,290
Total Revenues 5,755,368 5,341,059 1,032,780 983,586 6,788,148 6,324,645
Expenses
General Government 1,351,454 1,074,457 1,351,454 1,074,457
Public Safety -Police 1,041,953 977,504 1,041,953 977,504
Public Safety -Court 139,918 141,755 139,918 141,755
Public Works 704,036 768,341 704,036 768,341
Culture and Recreation 269,736 243,818 269,736 243,818
Economic Development 294,161 296,799 294,161 296,799
Depreciation 248,436 224,206 248,436 224,206
TlF 415,237 458,028 415,237 458,028
Interest and Fees 315,463 288,257 315,463 288,257
Other Capital Expenditures 348,415 175, 139 348,415 175,139
Other 28,308 28,308
Se\ver 851,311 826,319 851,311 826,319
Total Expenses 5,157,117 4,648,304 851,31 l 826,319 6,008,428 5,474,623
Change in Net Assets 598,251 692,755 181,469 157,267 779,720 850,022
Net Assets,
Beginning of Year 4,076,045 3,383,290 3,073,977 2,916,710 7,150,022 6,300,000
Net Assets, End of Year $ 4,674,296 $ 4,076,045 $ 3,255,446 $ 3,073,977 $ 7,929,742 $ 7,150,022
8
Proprietmy Funds. The City's proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail. The net assets of the sewer
service at the end of the year total $3,255,466. The sewer fund had revenues exceeding
expenditures by $181,466 in 2012. This compares favorably with an increase in the net
assets of$157,266 in 2011.
Capital Asset and Debt Administration
Capital Assets. The City's investment in capital assets for its governmental and business
type activities as of December 31, 2012, totals $19,214,165. The largest capital expenditure
was connected with the Brink Myers Road project in the amount of $548,281 which was
primarily for sewer improvements. A legal settlement of $1,075,012 was received as
reimbursement for the cost of rebuilding a retaining wall.
Land
City of Parkville, Missouri
Capital Assets (Net of Depreciation)
Governmental Business-type
Activities activities
2012 2012
$ 869,880 $ 59,975
Buildings and Improvements 3,409,393 2,200,209
Machinery and Equipment 327,717 61,995
Infrastructure 3,411,294 1,597,328
Construction in Process 7.276,374
Total $15,294,658 $ 3,919,507
Total
2012
$ 929,855
5,609,602
389,712
5,008,622
7.276.374
$12,214,165
Additional information on the City's capital assets can be found in Note 5 of this report.
9
Long-Term Debt. At the end of the current fiscal year, the City had total debt outstanding of
$17,407,340.
General Obligation Bonds
Certificates of Participation
NID Limited Obligation ·
Temporary Notes
Revenue Bonds (SRF) 2004A
Capital Leases/
Lease-Purchase
Deferred Amounts
Total
City of Parkville, Missouri
Outstanding Debt
Governmental Activities Business-type Activities
2012 2011 2012 2011
$2,290,000 $ 2,545,000 $ -$
5,385,000 5,600,000
7,855,000 7,710,000
1,735,000 1,870,000
Total
?012
$2,290,000
5,385,000
7,855,000
1,735,000
170,018 I 79,613 I 70,018
(114,786) (122,985) 87 108 87 108 (27,678)
$15 415.2-14 $15 73? 015 $1992126 $2 136 721 $17 407,14.Q
2011
$ 2,545,000
5,600,000
7,710,000
1,870,000
179,613
(35,877)
$1].868 736
The general government indebtedness decreased $316,801 and the business government
indebtedness decreased $144,595.
Economic Factors and Next Year's Budgets and Rates
City of Parkville revenue for 2013 is projected to show modest gains over 2012 as the
economy continues its gradual strengthening. The City's Property Tax revenue will increase
about 2.0% over 2012. This continues a pattern of fairly stable real estate values coupled
with the gradually increasing pace of new construction since 2011. Early 2013, however, is
showing a dramatic increase in construction with residential building permits and
construction starts jumping to levels not seen since before the recession. At the same time,
property values and sales have moved upward with the improving real estate market. This
bodes well for City revenue for 2014 and beyond as the tax base continues to grow. Current
commercial construction remains minimal; however projects are in planning phases to
develop several new commercial properties that should produce additional property and sales
tax revenue in future years. The decrease of commercial space vacancies to near zero is
additional evidence of a strengthening local economy. Since Franchise taxes correlate with
the number of homes and commercial buildings in use, this revenue should keep pace with
continued development.
While the overall economy has improved, the City's sales tax base has come under pressure
from competition from businesses located outside the City, including a large grocery store
and expansion of a nearby specialty shopping district. This has reduced sales tax revenue
expectations for 2013 by 2 to 3%. For 2013, this has been offset by the jump in building
permits with the previously mentioned increase in construction so that overall, the City's
General Fund 2013 revenue is expected to exceed the budgeted total by a small margin.
As in prior years, the City has budgeted cautiously, holding 2013 revenue and expenditure
budgets at near 2012 levels. However, City personnel remain optimistic, expecting overall
modest, but positive growth in revenue for 2013. Revenue receipts for the first 6 months of
10
2013 give confidence that the budgetary goals will be met or exceeded. City expenditures
are well within levels anticipated in the 2013 budget.
Contacting the City's Financial Management
This report is designed to provide our citizens, taxpayers, customers and creditors with a
general overview of the City's finances and to demonstrate the City's accountability for the
money it receives. If you have questions about this report or need additional financial
information, contact the City Clerk's office, Parkville, Missouri.
1 I
CITY OF PARKVILLE, MISSOURI
STATEMENT OF NET ASSETS
DECEMBER 31, 2012
Governmental Business-Type
Activities Activities Total
Assets
Cash and Cash Equivalents $ 3,600,561 $ 1,159,346 $ 4,759,907
Restricted Cash and Investments 1,251,606 28,338 1,279,944
Receivables, Net of Allowance for Uncollectibles
Taxes 1,585, 722 1,585,722
Accounts 48,650 98,781 147,43 I
Deferred Charges I 72,098 90,097 262, 195
Prepaid Items 68,234 68,234
Capital Assets not being Depreciated
Land 869,880 59,975 929,855
Construction in Progress 7,276,374 7,276,374
Infrastructure 3,375,563 3,375,563
Capital Assets, Net of Accumulated Depreciation
Buildings and Improvements 3,409,393 2,200,209 5,609,602
Machinery and Equipment 327,717 61,995 389,712
Infrastructure 35,731 1,597,328 1,633,059
Total Assets 22,021,529 5,296,069 27,317,598
Liabilities
Accounts Payable and Other Current Liabilities 216,862 32,917 249,779
Accrued Interest Payable 101,190 2,094 103,284
Customer Deposits 13,485 13,485
Unearned Revenue 1,550,000 1,550,000
Other 63,967 63,967
Bonds and N ates
Due Within One Year 8,346,80 I 150,079 8,496,880
Due in More Than One Year 7,068,413 1,842,048 8,910,461
Total Liabilities I 7,347,233 2,040,623 19,387,856
Net Assets
Invested in Capital Assets, Net of
Capital Related Debt 120,556 1,927,380 2,047,936
Restricted for
Debt Service 1,041,538 28,338 1,069,876
Capital Projects 57,141 57,141
Community Betterment 545,519 545,519
Unrestricted 2,909,542 1,299, 728 4,209,270
Total Net Assets $ 4,674,296 $ 3,255,446 $ 7,929,742
The accompanying notes are an integral part of the financial statements.
12
CITY OF PARKVILLE, MISSOURI
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 3I, 2012
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Operating Capital Prirn!!!l:'. Government
Charges for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Governmental Activities
General Government $ 1,351,454 $ 233,393 $ 56,650 $ 443,229 $ (618,182) $ $ (618,182)
Public Safety -Police 1,041,953 325,275 (716,678) -(716,678)
Public Safety -Court 139,918 (139,918) (139,918)
Public Works 704,036 (704,036) (704,036)
Culture and Recreation 269, 736 -(269,736) (269,736)
Economic Development 294,161 (294,161) (294,161)
Depreciation 248,436 (248,436) (248,436)
TlF 415,237 (415,237) (415,237)
Infrastructure 196,150 (196,150) (196,150)
Interest and Fees 315,463 (315,463) (315,463)
Net Adjustment 28,308 (28,308) (28,308)
Other Capital Expenditures 152,265 (152,265) (152,265)
Total Governmental Activities 5,157,117 558,668 56,650 443,229 (4,098,570) (4,098,570)
Business-type Activities
Se\ver 851.311 1.032.780 181,469 181,469
Total Business-type Activities 851,311 1,032,780 181,469 181,469
Total Primary Government $ 6,008,428 $ 1,591,448 $ 56,650 $ 443,229 (4,098,570) 181,469 (3,917,101)
General Revenues
Property Tax 1,378,901 1,378,901
Franchise Tax 834,696 834,696
Sales Tax 1,461,532 1,461,532
Unrestricted Investment Earnings 57,930 57,930
lntergovcmmenlal 58,582 58,582
Se\Ver Admin Fees 75,000 75,000
TIF 419,707 419,707
FEMA 217,450 217,450
Other 193,023 193,023
Total General Revenues 4,696,821 -4,696,821
Change in Net Assets 598,251 181,469 779,720
Net Assets, Beginning of the Year 4,076,045 3,073,977 7,150,022
Net Assets, End of Year $ 4,674,296 $ 3,255,446 $ 7,929,742
The accompanying notes are an integral part of the financial statements.
n
CITY OF PARKVILLE, MISSOURI
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2012
Transportation Capital Debt Other Total
General Special Revenue Projects Service Governmental Governmental
Fund Fund Fund Fund Funds
Assets
Cash and Cash Equivalents $ 55 J,043 $ 574,891 $ (3,970) $ 442,225 $ 2,036,372
Restricted Cash [nvestments 984 61,111 643,992 545,519
Receivables, Net of Allo\vnnce
for Uncollectibles
Taxes 985,301 600,421
Accounts Receivable J,597 47,053
Prepaid Items 68,234
Total Assets $1,606,175 $ 622,928 $ 57,141 $1,686,638 $ 2,581,891
Liabilities and Fund Balance
Liabilities
Accounts Payable $ 158,278 $ 52,785 $ $ 400 $ 5,399
Bonds Payable
Unearned Revenue 905,300 644,700
Total Liabilities J ,063,578 52,785 645,100 5,399
Fund Balances
Nonspendable
Prepaids 68,234
Restricted for
Capital Projects 570,143 57,141 J,081,527
Debt Service 1,041,538
Community Betterment 545,519
Assigned
Capital Purposes
Unassigned
General Fund 474,363
Special Revenue 949,446
Total Fund Balances 542,597 570,143 57,141 J,041,538 2,576,492
Total Liabilities and
Fund Balances $1,606,175 $ 622,928 $ 57,141 $1,686,638 $ 2,581,891
The accompanying notes are an integral part of the financial statements.
14
Funds
$ 3,600,561
1,251,606
1,585,722
48,650
68,234
$ 6,554,773
$ 216,862
1,550,000
1,766,862
68,234
1,708,811
1,041,538
545,519
474,363
949,446
4,787,911
$ 6,554,773
CITY OF PARKVILLE, MISSOURI
RECONCILIATION OF THE BALANCE SHEET OF THE
GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS
DECEMBER 31, 2012
Total Fund Balance in Governmental Fund Balance Sheet
Amounts reported for governmental activities in the statement
of net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Long-term liabilities, including bonds payable, are not due
and payable in the current period and therefore are not
reported in the funds. (Note 2)
Net Assets of Governmental Activities
$ 4,787,911
15,294,658
(15,408,273)
$ 4,674,296
The accompanying notes are an integral part of the financial statements.
15
CITY OF PARKVILLE, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Revenues
Taxes
Licenses and Pennits
Intergovernmental
Charges for Services
Fines and Fees
Special Assessments
Investment Earnings
Grants
TIF Revenue
Sewer Service Fees
FEMA
Legal Settlement
Miscellaneous
Total Revenues
Expenditures
Current
General Government
Public Safety-Police
Public Safety -Court
Public Works
Economic Development
Debt Service
Principal
Interest
Other
$
FOR THE YEAR ENDED DECEMBER 31, 2012
General
Fund
2,686,751
215,897
58,582
17,496
325,275
26,295
3,665
75,000
217,450
170,873
3,797,284
1,281,001
1,051,966
140,325
960,632
314,774
Transportation
Special Revenue
Fund
$ 656,737 $
120,346
6,470
52,985
80,250
916,788
152,265
Capital
Projects
Fuod
24
24
95,598
$
Debt
Service
Fund
Other
Governmental
Funds
331,640 $ - $
81
322,883
11,063
665,667
470,000
295,018
4,050
14,078
419,707
1,075,012
22,150
1,530,947
66,403
The accompanying notes are an integral part of the financial statements.
16
Total
Government
Funds
3,675,128
215,897
58,582
17,496
325,356
443,229
57,930
56,650
419,707
75,000
217,450
1,075,012
273,273
6,910,710
1,499,669
1,051,966
140,325
960,632
314,774
470,000
390,616
4,050
CITY OF PARKVILLE, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
Transportation Capital Debt Other
General Special Revenue Projects Service Governmental
Fund Fund Fund Fund
Infrastructure -196,150 -
TIF Expense --
Financing Costs 43,373 -
Capital Outlay 409,310 -
Total Expenditures 3,748,698 348,415 548,281 769,068
Excess (Deficiency) of Revenues
Over (Under) Expenditures 48,586 568,373 (548,257) (103,401)
Other Financing Sources (Uses)
Note Proceeds -Refinancing 4,855,000
Notes Retired -Refinancing ( 4, 710,000) -
Other (28,308) ---
Transfers In 486,701 236,799 -214,000
Transfers (Out) (567,558) (569,000) -
Total Other Financing Sources (109,165) (332,20 I) 145,000 214,000
Net Changes in Fund Balances
After Other Financing Sources (60,579) 236,172 (403,257) 110,599
Fund Balance, Beginning of Year 603, 176 333,971 460,398 930,939
Fund Balance, End of Year $ 542,597 $ 570,143 $ 57,141 $ 1,041,538 $
The accompanying notes are an integral part of the financial statements.
17
Funds
-
415,237
154,366
636,006
894,941
-
199,058
-
199,058
1,093,999
1,482,493
2,576,492 $
Total
Government
Funds
196, 150
415,237
43,373
563,676
6,050,468
860,242
4,855,000
(4,710,000)
(28,308)
1,136,558
(1,136,558)
116,692
976,934
3,810,977
4,787,911
CITY OF PARKVILLE, MISSOURI
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITillS
DECEMBER 31, 2012
Amounts reported for governmental activities in the statement of activities are
different because:
Net Change in Fund Balances -Total Government Funds
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.
The issuance of long-term debt (e.g., bonds, leases) provides current
financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net
assets. Also, governmental funds report the effect of issuance costs,
premiums, discounts and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the Statement of Activities.
This is the net amount of bond principal payments and retired certificates of .. . ..
Refinancing transaction in which the bond proceeds exceeded the bonds
retired reported as increase in the fund balance.
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in governmental funds.
Legal settlement reported in the Government Fund as income was treated as
Refund from the State of Missouri for infrastructure.
Change in Net Assets of Governmental Activities
The accompanying notes are an integral part of the financial statements.
18
$ 976,934
476,267
470,000
(145,000)
(24,688)
(1,075,012)
(80,250)
$ 598,251
Assets
Current Assets
CITY OF PARKVILLE, MISSOURI
STATEMENT OF NET ASSETS
PROPRIETARY FUND -SEWER SERVICE
DECEMBER 31, 2012
Cash and Cash Equivalents
Restricted Cash and Investments
Accounts Receivable
Total Current Assets
Noncurrent Assets
Deferred Charges
Capital Assets
Land
Buildings and Improvements
Machinery and Equipment
Infrastructure
Less Accumulated Depreciation
Total Capital Assets
Total Noncurrent Assets
Total Assets
Liabilities
Current Liabilities
Accounts Payable and Other Current Liabilities
Accrued Interest Payable
Customer Deposits Payable
Current Portion of Revenue Bonds Payable
Current Portion of Leases Payable
Total Current Liabilities
Noncurrent Liabilities
Revenue Bonds Payable, Net
Lease Payable
Total Noncurrent Liabilities
Total Liabilities
Net Assets
Restricted
Debt Service
Invested in Capital Assets, Net of Related Debt
Unrestricted
Total Net Assets
$ 1,159,346
28,338
98,781
1,286,465
90,097
59,975
5,252,588
233,579
2,005,990
(3,632,625)
3,919,507
4,009,604
5,296,069
32,917
2,094
13,485
140,000
10,079
198,575
1,682, 108
159,940
1,842,048
2,040,623
28,338
1,927,380
1,299,728
$ 3,255,446
The accompanying notes are an integral part of the financial statements.
19
CITY OF PARKVILLE, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
PROPRIETARY FUND -SEWER SERVICE
FOR THE YEAR ENDED DECEMBER 31, 2012
Operating Revenues
Charges for Sales and Services
Sewer Charges
Total Operating Revenues
Operating Expenses
Cost of Sales and Services
Depreciation and Amortization
Total Operating Expenses
Operating Income
N onoperating Revenues (Expenses)
Interest Revenue
Interest Expense
Other Income
Grant
Total Net Nonoperating Revenues
Change in Net Assets
Total Net Assets, Beginning of Year
Total Net Assets, End of Year
$ 1,026,169
1,026,169
537,981
279,273
817,254
208,915
6,611
(34,057)
(27,446)
181,469
3,073,977
$ 3,255,446
The accompanying notes are an integral part of the financial statements.
20
CITY OF PARKVILLE, MISSOURI
STATEMENT OF CASH FLOWS
PROPRIETARY FUND -SEWER SERVICE
FOR THE YEAR ENDED DECEMBER 31, 2012
Cash Flows from Operating Activities
Receipts from Customers
Payments to Suppliers
Net Cash Provided by Operating Activities
Cash Flows from Capital and Related Financing Activities
Payments on Leases Payable
Acquisition of Capital Assets
Grant Income
Principal Paid on Capital Debt
Interest Paid on Capital Debt
Other
Net Cash (Used) by Financing Activities
Cash Flows from Investing Activities
Interest Received
Net Cash Provided by Investing Activities
Increase in Cash and Cash Equivalents
Cash, Beginning of Year
Cash, End of Year
Reconciliation of Operating Income to Net Cash
Provided by Qperating Activities
Operating Income
Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities
Depreciation Expense
Changes in Assets and Liabilities
Accounts Receivable
Accounts Payable
Net Cash Provided by Operating Activities
$ 1,020,184
(539,720)
480,464
(9,594)
(24,006)
(135,000)
(34,869)
7,590
(195,879)
6,611
6,611
291,196
896,488
$ 1,187,684
$ 208,915
279,273
(5,985)
(1,739)
$ 480,464
The accompanying notes are an integral part of the financial statements.
21
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2012
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICms
Reporting Entity
The City of Parkville, Missouri (the City), is incorporated under the provisions of the
State of Missouri as a fourth class city, which operates under an elected Mayor/Board
of Aldermen form of government.
Govemment-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the activities of the government.
Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or segment is offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or segment. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services, or privileges provided by a given function or segment and 2)
grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary
funds. Major individual governmental funds and the major individual enterprise fund
are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Acco1111ting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
financial statements. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year following the year tl1e taxes are levied.
Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
22
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Measurement Focus, Basis of Acco1111ting, and Financial Statement Presentatio11-
Conti1111ed
Govenunental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. A 90-day availability period
is used for.revenue recognition for all govenunental fund revenues except property
taxes for which a 30-day availability period is used. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
In applying the susceptible to accrual concept to intergovenunental revenues, the
legal and contractual requirements of the numerous individual programs are used as
guidance. There are, however, essentially two types of these revenues. In one, monies
must be expended for the specific purpose or project before any amounts will be paid
to the City; therefore, revenues are recognized based upon the expenditures recorded.
In the other, monies are virtually unrestricted as to purpose of expenditure and are
usually revocable only for failure to comply with prescribed requirements. These
resources are reflected as revenues at the time of receipt, or earlier if the susceptible
to accrual criteria are met.
Property taxes, sales taxes, franchise taxes, interest associated with the current fiscal
period, and certain state and federal grants and entitlements are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Only the portion of special assessments receivable due within the current
fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only
when cash is received by the City. While property taxes are shown on the balance
sheet as current assets of the City, they are not recognized as revenue at year end
because statutory provisions prohibit their use until the year for which they were
raised and budgeted. Instead, they are offset by deferred revenue accounts.
23
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Measure111e11t Focus, Basis of Acco1111ti11g, a11d Fi11a11cia/ Statement Prese11tatio11 -
Co11ti11ued
The City reports the following major governmental funds:
General Fund -This fund is the City's primary operating fund. It accounts for
all financial resources of the general government, except those required to be
accounted for in another fund.
Transportation Special Revenue Fund -This fund is used to account for the
sales tax collected for capital improvements and the expenditures for the
related items.
Capital Projects Fund -This fund accounts for the financing and acquisition
and construction of various citywide improvements.
Debt Service Fund -This fund accounts for the accumulation of resources for,
and the payment of, principal and interest on long-term general obligation
debt of governmental funds. Revenue and expenses for each of the several
debt service obligations are kept separate and accounted for independently of
the other obligations so that funds available for each debt service obligation
are used only for that obligation.
The City reports the following major proprietary fund:
Sewer Service -This fund accounts for the provision of waste and sewer
services to t11e general public. All activities necessary to provide such services
are accounted for in this fund, including administration, operations,
maintenance, financing and related debt service, and billing and collection.
As a general rule the effect of inter-fund activity has not been eliminated from the
government-wide financial statements. Elimination of these charges would distort the
direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants
for goods, services, or privileges provided, 2) operating grants and contributions, and
3) capital grants and contributions, including special assessments. Internally
dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
24
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Measurement Focus, Basis of Acco1111ting, and Financial Statement Presentation -
Continued
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the sewer fund are charges to
customers for sales and services. Operating expenses for the sewer fund include the
cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's
policy to use restricted resources first, then unrestricted resources as they are needed.
Equity Classifications
In the city-wide financial statements, equity is classified as net assets and displayed in
three components:
I. ln".ested in capital assets, net of related debt -Consists of capital assets,
net of accumulated depreciation and reduced by the outstanding balances of
any bonds, mortgages, notes or other borrowings that are attributable to the
acquisition, construction or improvement of these assets.
2. Restricted net assets -Consists of net assets with constraints placed on their
use either by (a) external groups such as creditors, grantors, contributors or
laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation.
3. Unrestricted net assets -All other net assets that do not meet the definition
of"invested in capital assets, net ofrelated debt" or "restricted".
25
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
F1111d Balance Classifications
The Governmental Accounting Standards Board (GASB) released Statement 54-
"Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54) on
March 11, 2009, which is effective for the City's fiscal year ending December 31,
2011. This Statement is intended to improve the usefulness of the amounts reported
in fund balance by providing more structured classifications. Under GASB 54, fund
balance is reported under the following five classifications:
1. Non-spendable Fund Balance -consists of amounts that are not in a
spendable form or are required to be maintained intact.
2. Restricted Fund Balance -consists of amounts that can be spent only for the
specific purposes stipulated by external resource providers, constitutionally, or
through enabling legislation. The Restricted for Debt Service and Restricted
for ·Capital Projects balances reflect amounts that are restricted for debt
service and construction or other capital outlay projects.
3. Committed Fund Balance -consists of amounts that can be used only for the
specific purposes determined by a formal action of the District's highest level
of decision-making authority (tl1e Board of Aldermen) and do not lapse at year
end. The committed fund balance consists of general board reserves.
4. Assigned Fund Balance -consists of amounts intended for a specific purpose
by the Board of Aldermen that has been delegated autl10rity to assign
amounts. This fund balance classification reflects funds assigned for capital
projects.
5. Unassigned Fund Balance -consists of any remaining fund balance that has
not been reported in any other classification.
Caslz, Caslz Eq11ivale11ts a11d J11vestme11ts
Cash and investments of the individual funds are combined to form a pool which is
managed by the Finance Department. Each fund's equity in the pool is included in
"cash and cash equivalents" in the financial statements. Investment earnings,
including interest income, are allocated to the funds required to accunmlate interest. If
a fund is not required to account for its own earnings by law or regulation, the
earnings are allocated to the General Fund.
26
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Cash, Cash Equivalents a11d J11vest111e11ts -Continued
Missouri state statutes authorize the City, with certain restrictions, to deposit funds in
open accounts and certificates of deposit. Missouri state statutes also require that
collateral pledged must have fair market value equal to 100% of the funds on deposit,
less amounts insured by federal deposit insurance. Collateral securities must be held
by the City or a disinterested third party and may include U.S. Government and
government agency bonds and securities; general obligation bonds of any of the 50
states; gern;iral obligation bonds of any Missouri county, certain cities, and special
districts; and revenue bonds of certain Missouri agencies. Obligations pledged to
secure deposits are delivered to the banks' joint custody accounts at the custodial
bank. Written custodial agreements are required that provide, among other things,
that the collateral be held separate from the assets of the custodial bank.
Statement of Cash Flows
The City's cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less
from the date of acquisition.
Receivables and Payables
All trade accounts receivable are shown net of an allowance for uncollectibles.
Management records a trade accounts receivable allowance based on percentages of
collection estimated from the aging of accounts receivable. At December 31, 2012,
management determined that no allowance was necessary.
Governmental funds report unearned revenue in connection with receivables for
revenues that are not considered to be available to liquidate liabilities of the current
period. Governmental funds unearned revenue is reported as follows:
General Fund Property Tax Receivable
Debt Service Fund Property Tax Receivable
27
$ 905,300
644.700
$1.550.000
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Property Taxes
Property taxes are legally restricted for use in financing operations of the ensuing
year. Accordingly, the City defers revenue recognition until the year for which they
are to be used.
The City's property taxes are levied each November 1 based on the assessed value as
of the prior January 1 for all real property and personal property located within the
City. Property taxes are billed immediately following the levy date and considered
delinquent after December 31 following the levy date. Assessed values are
established by county assessors, subject to review by the county's Board of
Equalization.
The City is permitted by Missouri state statutes to levy taxes up to $1.00 per $100 of
assessed valuation for general governmental services other than the payment of
principal and interest on long-term debt and in unlimited amounts for the payment of
principal and interest on long-term debt.
The tax levy per $100 of assessed valuation which supports the 2012 budget was:
General Fund
General Revenue -Temporary
$ 0.4784
0.1759
$ 0.6543
Taxes receivable represent property taxes levied for 2012 and prior years that have
not yet been collected. The assessed value of property located within the City totaled
$187,449,313.
Prepayme11ts
Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepayments in both government-wide and fund financial statements.
These items are reported in the financial statements using the consumption method.
A current asset for the prepaid amounts is recorded at the time of the purchase and the
expenditure/expense is reported in the year which services are consumed. At fiscal
year end, because prepayments are not available to finance future governmental fund
expenditures, the fund balance is considered non-spendable in an amount equal to the
carrying value of the asset on the fund financial statements.
28
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Restricted Cash and /11vest111e11ts
The City is statutorily required to maintain customer utility deposits separate from
City assets. Restricted cash and investments are also set aside for debt service
payments and for required debt reserves.
Unamortized Bond Iss11a11ce Costs and Bond Premium and Discount
On government-wide financial statements, issuance costs are deferred and amortized
over the term of the bonds using the straight-line method. Unamortized issuance
costs are recorded as a separate line item on the statement of net assets.
Bond premiums are deferred and amortized over the term of the bonds using the
straight-line method, which approximates the effective interest method. Bond
premiums are presented as an addition to the face amount of the bonds.
Capital Assets
Capital assets, which include property, plant, equipment, infrastructure (e.g., roads,
bridges, sidewalks and similar items) and construction in progress are reported in the
applicable governmental or business-type activities columns in the government-wide
financial statements.
As the City is a Phase III government under Governmental Accounting Standards
GASB 34, it has elected to exercise its option to forego retroactively reporting
governmental infrastructure assets acquired prior to December 31, 2003.
Governmental infrastructure assets on the statement of net assets include only roads,
bridges, sidewalks and similar items acquired subsequent to December 31, 2003.
Capital assets, excluding land, are defined by the City as assets with a cost of more
than $2,500 and an estimated useful life of at least one year. All land purchases are
capitalized regardless of cost. All purchased capital assets are valued at cost where
historical records are available and at an estimated historical cost where no historical
records exist. Donated capital assets are valued at their estimated fair market value on
the date received.
The costs of normal maintenance and repairs that do not add to the value of the asset
or materially extend the life of the asset are not capitalized.
29
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Capital Assets -Continued
Major outlays for capital improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of the business-type
activities is included as part of the capitalized value of tl1e assets constructed. If the
expenditure is depreciable, it will be written off from the time it is put in service.
The City defines infrastructure as the basic physical assets that allow the City to
function. The assets include the street network, storm drainage network, and
pedestrian and vehicle bridges and buildings combined with the site amenities such as
parking and landscaped areas used by the City in the conduct of its business. Each
major infrastructure network can be divided into subsystems. For example, the street
network can be subdivided into pavement, curbs, gutters, sidewalks, land, medians,
etc. These networks and subsystems are not delineated in the basic financial
statements.
Governmerital street and parking lot assets are reported using the modified approach
as defined in GASB Statement 34 for infrastructure reporting of these assets. When
using tl1e modified approach, only tl10se projects that add efficiency or capacity to
street and parking lot assets are capitalized. Street and parking lot assets are not
depreciated. Expenditures that preserve those assets are expensed.
Capital assets are depreciated using the straight-line method over the following
estimated useful lives:
Buildings
Sewer Plant and Collection System
Machinery and Equipment
Compensated Absences
20-40 years
20-50 years
5 - 7 years
City policies permit full-time employees to accumulate sick pay benefits and vacation
time based on the number of years of service. Accumulated vacation payable is
accrued when incurred in the government-wide financial statements and proprietary
fund statements. In tl1e governmental fund financial statements, a liability is accrued
when it has matured, for example, as a result of employee resignations and
retirements.
30
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well
as issuance costs, are deferred and amortized over the life of the bonds using the
effective interest method. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are reported as deferred charges and
amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums
and discounts, as well as bond issuance costs as of the bond issuance date. The face
amount of debt issued is reported as a financing source. Premiums received on debt
issuances are reported as other financing sources while discounts on debt issuances
are reported as other financing uses. Issuance costs, whether or not withheld from the
actual debt proceeds received, are reported as debt service expenditures.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
31
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 2 -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
Expla11atio11 of Certain Differences between the Governmental Fu11d Balance
Sheet a11d tile Gover11111e11t-Wide Statement of Net Assets (Page 15)
The governmental fund balance sheet includes a reconciliation between fund balance
-total governmental funds and net assets of governmental activities as reported in the
government-wide statement of net assets. One element of that reconciliation explains
that "long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported in the funds". The details of this
$(15, 708,625) difference are as follows:
Bonds Payable
Certificates of Participation Payable
Neighborhood Improvement District Limited General
Obligation Temporary Notes
Accrued Interest Payable
Compensated Absences
Issuance Discount
Cost ofissuance
Deferred Refunding Difference and Other
Net Adjustment to Reduce Fund Balance
Net Reconciling Item for Long-term
Liabilities (Page 15)
$ (2,290,000)
(5,385,000)
(7,855,000)
(101,190)
(63,967)
38,938
172,098
75.848
$(] 5.408.273)
Explanation of Certain Differences betwee11 the Governmental Fu11d State111e11t of
Revenues, Expenditures and Cha11ges i11 Fu11d Balances a11d the Go11er11111e11t-Wide
Statement of Activities (Page 18)
The governmental fund statement of revenues, expenditures, and changes in fund
balances includes a reconciliation between net changes in fund balances -total
governmental funds and changes in net assets of governmental activities as reported
in the government-wide statement of activities. One element of that reconciliation
explains that "Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense." The details of this difference are
as follows:
32
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 2 -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS-CONTINUED
Explanation of Certain Differences between tfte Govemmental Fund Statement of
Revenues, Expenditures and Changes ill Fund Balances and tfte Govemment-Wide
Statement of Activities (Page 18) -Continued
Capital Outlay:
Machinery and Equipment
Brush Creek Sewer Improvements
Depreciation Expense
Net Reconciling Item for Capital
Outlays/Depreciation (Page 18)
$ 176,422
548,281
(248.436)
$ 476.?67
Another element of that reconciliation states that "The issuance of long-term debt
(e.g., bonds, leases) provides current financial resources to governmental funds, while
the repayment of the principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however, has any effect on net
assets. Also, governmental funds report the effect of ,issuance costs, premiums,
discounts, and similar items when debt is first issued, whereas these amounts are
deferred and amortized in the statement of activities". The details of tlris difference
are as follows:
Refinancing of General Obligation Bonds
New Bond Indebtedness
Debt Retired with Refinancing
Total
Principal Repayments
General Obligation Bonds
Certificates of Participation
Total
33
$(4,855,000)
4.710.000
$ (]45.000)
$ 255,000
215.000
$ 470.000
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 2 -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS-CONTINUED
Expla11atio11 of Certain Differences between the Governmental Fu11d Statement of
Revenues, Expenditures and Changes i11 Fu11d Balances and the Government-Wide
Statement of Activities (Page 18) -Continued
Another element of that reconciliation states that "Some expenses reported in the
statement of activities do not require the use of current financial resources and
therefore are not reported as expenditures in governmental funds." The details of this
$(6,882) difference are as follows:
Compensated Absences
Amortization ofissuance Costs
Amortization of Deferred Refunding Difference
Amortization of Bond Discounts
Other
Net Reconciling Item Relating to Certain
· Expenses (Page 18)
NOTE 3 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgets and Budgetary Accounting
$ (4,040)
(12,634)
(5,417)
(2,782)
185
$ (24.688)
Missouri statutes require that all political subdivisions of the State prepare an annual
budget. Governmental funds required to have legally adopted annual budgets are the
general fund, the special revenue funds, and the debt service fund. Legally adopted
annual budgets are not required for the capital projects fund and the permanent fund.
Annual budgets for all governmental funds are adopted using the modified accrual
basis of accounting, further modified by the encumbrance method of accounting, that
is, commitments such as purchase orders, contracts and other commitments, m
addition to disbursements and accounts payable are recorded as expenditures.
Budgeted expenditures cannot exceed budgeted revenues and unencumbered positive
fund balances as required by Section 67.010 RSMo. The appropriated budget is
prepared by fund, function, and department. State statutes set the legal level of
budgetary control at the fund level (i.e., the level at which expenditures may not
legally exceed appropriations). Department heads may make transfers of
appropriations within their departments. Upon written request, the City Administrator
or the Board of Aldermen may by ordinance transfer part or all of any unencumbered
appropriated balance from one department to another.
34
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 3-STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY-CONTINUED
Budgets and BudgetlllJ' Accounting-Continued
The reported budgetary data represents the final approved budget as adopted by the
Board of Aldermen. There were no amendments to the budget in 2012.
NOTE 4 -DEPOSITS AND INVESTMENTS
As ofDece~ber 31, 2012, the City had the following deposits and inveshuents:
US Treasuries and Agency Securities
Deposits:
Checking and Money Market
Reported
Amount/
Fair Value
$ 855,655
5.184.196
$6.039.851
Reconciliation of Government-wide Statement of Net Assets to total deposits and
inveshuents:
Cash and Cash Equivalents
Restricted Cash and Investments
Total Deposits and Investments
Interest Rate Risk
$4,759,907
1.279.944
$6.039.851
Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an inveshnent. The City does not have a formal inveshnent policy that limits
investment maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates. It is the City's practice to place operating funds in
either money market accounts or savings accounts. All longer-term investments are
placed in Treasury securities having relatively short maturities. These consist of funds
whose use is restricted and are unlikely to be needed prior to maturity (e.g. the
Fewson Trust).
35
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 4 -DEPOSITS AND INVESTMENTS -CONTINUED
Credit Risk
Missouri statutes prohibit municipalities from investing in derivative, leveraged, or
speculative securities. City agents invest funds for restricted debt reserves and
unexpended debt proceeds in money market funds.
Custodia/ Credit Risk -Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the City's
deposits may not be returned. As of December 31, 2012, the carrying amount of the
City's deposits was less than pledged securities plus federal deposit insurance. It is
City practice to require banks to provide collateral equal to any deposited amounts
exceeding federal depository insurance limits.
Custodial Credit Risk-I11vestme11ts
For an investment, custodial credit risk is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. At December 31,
2012, the City's investments were not exposed to custodial credit risk.
The State Constitution permits a city, by vote of two-thirds of the voting electorate, to
incur general obligation indebtedness for "city purposes" not to exceed I 0% of the
assessed value of taxable tangible property and to incur additional general obligation
indebtedness not exceeding, in the aggregate, an additional 10% of the assessed value
of taxable tangible property for the purpose of acquiring rights-of-way, construction,
extending and improving streets and avenues and/or storm sewer systems, and
purchasing or construction of waterworks, electric, or other light plants, provided that
the total general obligation indebtedness of the city does not exceed 20% of the
assessed valuation of taxable property. The City debt limit does not exceed the State
Constitution limits.
Defensed Debt -Series 2004
In prior years, the City defeased these bonds by placing the proceeds of new bonds in
an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the liability for the defeased bonds is not included in the City's financial
statements.
36
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 5 -CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not being Depreciated
Land $ 869,880 $ $ $ 869,880
Construction in Progress 7,803,055 548,281 1,075,012 7,276,324
Infrastructure 3,455,903 80,250 3,375,653
Total Capital Assets not being Depreciated 12,128,838 548,281 1,155,262 11,521,857
Capital Assets being Depreciated
Buildings and Improvements 4, 153,323 4,153,323
Machinery and Equipment 1,665,609 176,422 1,842,031
Infrastructure 44,663 44,663
Total Capital Assets being Depreciated 5,863,595 176,422 6,040,017
Less Accumulated Depreciation for
Buildings and Improvements (653,645) (90,285) (743,930)
Machinery and Equipment (J ,357,439) (156,875) (J,514,314)
Infrastructure (7,656) (1,276) (8,932)
Total Accumulated Depreciation (2,018,740) (248,436) (2,267, 176)
Total Capital Assets being Depreciated, Net 3,844,855 (72,014) 3,772,841
Governmental Activities Capital Assets, Net $ 15,973,693 $ 476,267 $ 1,155,262 $15,294,698
Business-type Activities
Capital Assets not being Depreciated
Land $ 59,975 $ -$ $ 59,975
Total Capital Assets not being Depreciated 59,975 59,975
Capital Assets being Depreciated
Buildings and Improvements 4,838,888 4,838,888
Machinery and Equipment 209,573 24,006 233,579
Infrastructure 2,381,388 2,381,388
Total Capital Assets being Depreciated 7,429,849 24,006 7,453,855
Less Accumulated Depreciation for
Buildings and Improvements (2,411,881) (226,798) (2,63 8,679)
Machinery and Equipment (168,973) (2,611) (171,584)
Infrastructure (734, 196) (49,864) (784,060)
Total Accumulated Depreciation (3,315,050) (279,273) (3,594,323)
Total Capital Assets being Depreciated, Net 4, 114,799 (255,267) 3,859,532
Business-type Activities Capital Assets, Net $ 4,174,774 $ (255,267) $ $ 3,919,507
37
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 5 -CAPITAL ASSETS -CONTINUED
Depreciation expense related to the functions/programs of the primary government is as
follows:
Governmental Activities
General Government
Public Safety
Public Works
Parks
Nature Sanctuary
Channel 2
Total Depreciation Expense
Business-type Activities -Sewer Operations
$ 124, 193
53,071
36,524
29,280
2, 116
3,252
$ 248,436
$ 279,273
Construction in Progress consists of costs incurred to construct infrastructure assets (i.e. -
streets, curbs, retaining wall, storm drainage network, and similar items) for two
development projects: Brink Myers Road and Brush Creek Sewer. Both of these real estate
developments are currently owned in part by financial institutions and developers and are
at various stages of completion.
A retaining wall connected with Brink Myers Road collapsed in 2009. The City received
$1,075,012 in 2012 in connection with a legal settlement. The amount received has been
deducted from the investment in the project. The City received a refund from the State of
Missouri of$80,250 for construction of the Highway 9 bridge. The bridge was constructed
in 2011, financed with City and State of Missouri funds.
38
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 6-LONG-TERM OBLIGATIONS
The following is a summary of the debt transactions (bonds, notes and leases) of the City
for the year ended December 31, 2012:
Governmental Activities:
Bonds Payable
General Obligation'Bonds
Certificates of Participation
Neighborhood Improvement District
Limited Obligation Temp Notes
Less Deferred Amounts
for Issue Discounts
for Deferred Refunding Difference
Governmental Activity
Liabilities
Business-type Activities:
Bonds payable
Revenue Bonds (SRF) 2004A
Lease Purchase Agreement
Plus Deferred Amounts
for Issue Premiums
Business-type Activity Long-term
Liabilities
Beginning
Balance
$ 2,545,000 $
5,600,000
7,7IO,OOO
(41,720)
(81,265)
Additions
4,855,000
Reductions
Ending
Balance
$ (255,000) $ 2,290,000 $
(215,000) 5,385,000
(4,710,000)
2,782
5,417
7,855,000
(38,938)
(75,848)
Due
Within
One Year
265,000
235,000
7,855,000
(2,782)
(5,417)
$ 15,732,015 $ 4,855,000 $ (5,171,801) $ 15,415,214 $ 8,346,801
$ 1,870,000 $
179,613
94,133
$
$ 2,143,746 ';:;..$ ____ $
(135,000) $ 1,735,000 $
(9,594) 170,019
(7,025) 87,108
(151,619) $ 1,992,127 $
140,000
I0,079
150,079
$2,545000 m general obligation debt shown above 1s special assessment debt with
governmental commitment.
For governmental activities, long-term debt is generally liquidated by the general fund.
39
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 6 -LONG-TERM OBLIGATIONS -CONTINUED
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition,
construction and renovation of major capital assets.
General obligation bonds currently outstanding consist of the following:
General Obligation Bonds
Governmental Activities
Interest
Rates
Original
Issue
Series 2010 2.7% to 3.25% $ 2,785,000
Final
Maturity
Date
3/1/2020
Principal Outstanding
Payments/
Refinancing December 31,
During 2012 2012
$ 255,000 $ 2,290,000
$ 255,000 $ 2,290,000
On December 23, 2010, the City refinanced the 2001 General Obligation Bonds. The
City issued $2, 785,000 of new bonds to retire the old bonds. The interest rates on the
bonds vary from 2% to 3.25%. The annual requirements to amortize governmental
activities general obligation bonds outstanding as of December 31, 2012, are as
follows:
2013
2014
2015
2016
2017
2018 -2020
40
Governmental Activities
Principal Interest
$ 265,000 $ 56,713
270,000 51,363
275,000 46,256
280,000 40, 700
285,000 33,275
915,000 44,888
$ 2,290,000 $ 273,195
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 6-LONG-TERM OBLIGATIONS-CONTINUED
Certificates of Participatio11
The City issued certificates of participation series 2006 in the original amount of
$6,405,000 with interest rates ranging from 3.5% to 4.4% and with a final maturity in
2027. Principal payments are scheduled annually ranging from $75,000 to $490,000.
The balance at December 31, 2012, is $5,385,000.
Proceeds from the certificates of participation were used for City Hall construction.
Rush Creek stabilization, land acquisition and other scheduled capital improvements.
The annual requirements to amortize these certificates of participation are as follows:
2013
2014
2015
2016
2017
2018 -2022
2023-2027
Principal
$ 235,000
250,000
270,000
290,000
305,000
1,880,000
2.155.000
$5.385.000
Interest
$ 224,496
215,097
204,890
193,758
181,781
688,113
257.950
$1.966.085
Neiglzborlzood Jmproveme11t District Limited Obligation Temporary Notes
The temporary notes on the Brush Creek Sewer Project were refinanced during the
year to refinance the costs of constructing sewer lines for the Brush Creek Sewer
Area and other related improvements, including interest and issuance costs. The City
also has outstanding temporary notes for the Brink Myers Road Neighborhood
Improvement District that were issued to finance the construction of Brink Myers
Road, the retaining walI and the extension of electric and water utilities.
The notes and interest thereon constitute a valid and Jegaliy binding indebtedness of
the City, payable from special assessments on property within the NIDs which is
benefited by the improvements. The faith, credit and resources of the City are
irrevocably pledged for principal and interest on the notes if the assessments are
inadequate to support annual debt payments. Due to the uncertainty of timing of
development of property within the NIDs, the City is building its Emergency Reserve
Fund to prepare for any possible shortfalls in assessments
41
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 6 -LONG-TERM OBLIGATIONS -CONTINUED
Revenue Bonds (SRF) 2004A
The City issued Sewerage System Revenue Bonds Series 2004 in the original amount
of $2,750,000 with interest rates ranging from 3.0% to 5.25% and with a final
maturity in 2025. Principal payments are scheduled annually ranging from $30,000 to
$170,000. The balance at December 31, 2011, is $1, 735,000.
Bonds maturing on January I, 2015, and thereafter may be called at the option of the
City for redemption and payment prior to maturity in whole or in part on any date
with the consent of the bondholder, or on each June I and December I, commencing
December I, 2013, at the redemption price of 100% of principal amount of the bonds
redeemed, plus accrued interest to the redemption date. Bonds maturing on January I,
2019, January I, 2020, and January l, 2021, are not subject to redemption prior to
maturity.
Series 2004A (SRF) Sewage System Refunding Revenue Bonds (SRF) are special,
limited obligations of the City payable solely from, and secured by a pledge of, the
net revenues. The taxing power of the City is not pledged to the payment of the
bonds. The bonds do not constitute a general obligation of the City or an indebtedness
of the City within the meaning of any constitutional, statutory or charter provision,
limitation or restriction.
The annual requirements to amortize these bonds outstanding as of December 31,
2012, are as follows:
2013
2014
2015
2016
2017
2018 -2022
2023-2027
42
Principal
$ 140,000
140,000
145,000
150,000
150,000
810,000
200.000
$1.735,000
Interest
$ 84,978
79,938
72,938
65,688
58,188
170,638
10.350
$ 542.718
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 6-LONG-TERM OBLIGATIONS-CONTINUED
The Sewerage Revenue Bond ordinance requires that the Sewerage System Fund be
accounted for in a separate Enterprise Fund. It also requires that, after sufficient
current assets have been set aside to operate the system, all remaining monies held in
the Sewerage System Fund be segregated and restricted in separate special reserves
and accounts. In accordance with the bond ordinance, these bonds are serviced by the
Sewerage System Fund operations and are included as a liability of that fund.
Restricted assets of the principal and interest account are to be used for payment of
current principal and interest on bonds. Restricted assets of debt service are available
to pay prinCipal and interest in the event of a deficiency in the principal and interest
account. Restricted assets of the depreciation and replacement account are available
to operate, maintain, or improve the system, call bonds or for payment of debt service
in the event of a deficiency in other restricted assets.
Lease Purchase Agreement
In July 2003, the City entered into a lease-purchase agreement wherein the City sold
its sewer plant for $585,000 and leased it back for a period of twenty-two years. The
proceeds from the lease-purchase were used to make certain improvements to the
sewer plant property. Under the lease the City will have the full use of the property
and will make rental payments, which will apply to the principal and interest under
the lease.
Required payments under the lease purchase agreement on the sewer plant are as
follows:
PrinciJlal Interest
2013 $ 10,079 $ 8,377
2014 10,590 7,866
2015 11,126 7,330
2016 11,689 6,767
2017 12,281 6,175
2018 -2022 71,383 20,896
2023 -2027 42 871 3.268
$ 1 :Z0,019 $ 60,6:Z9
43
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 7 -RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; employee injuries and illnesses; natural
disasters; and employee health, dental and accident benefits. To protect itself against
risks ofloss, the City is a member of Midwest Public Risk of Missouri (MPR), a not
for-profit corporation consisting of goverrunental entities incorporated in 1984 to
acquire insurance for its members. MPR operates as a purchasing pool and is not a
joint venture activity of the City. The City has no control over budgeting, financing,
management selection, or the governing body. MPR provides both conventional and
self-insurance coverage for its members, including medical, dental, property,
casualty, general liability, and workers' compensation. The City participates in
property, casualty, general liability, and workers' compensation insurance coverage
through MPR.
MPR manages the cash and investment pool, funded by insurance premiums, on
behalf of its members. MPR's investment pool consists of interest-bearing deposits,
U.S. Treasury strips, U.S. Goverrunental agency obligations, and collateralized
mortgage obligations.
In the event that a deficit occurs with respect to any fiscal year of MPR for which the
City was a participant at any time during such year, and in the event that MPR
determines that an assessment is required in order to provide additional funds for the
obligations of MPR for such year, and further, in the event that the City was covered
by the types of benefits requiring the assessment during the time period in which the
assessment arose, the City is obligated to pay its pro rata share of any such
assessment whether or not the City is a member of MPR at the time of such
assessment. Management of the City is not aware of any deficit situation in MPR that
would require an accrual ofa liability as of December 31, 2012.
MPR's financial statements are presented in its Comprehensive Annual Financial
Report for the year ended December 31, 2012.
There has been no significant change in insurance coverage from the previous fiscal
year. Settled claims have not exceeded insurance coverage in any of the past three
years.
44
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 7 -RISK MANAGEMENT -CONTINUED
I11vestme11ts -Trust F1111d
The City was the recipient of funds from a resident's estate during calendar year 2002.
The funds are held by a trustee for the benefit of the City. The trustee of the fund is to
distribute one-half of the trust fund income to be used on various city capital projects.
The balance of the annual net income is to be reinvested in the principal of the fund.
At December 31, 2012, the trust assets had an account balance of$545,515.
NOTE 8 -COMMITMENTS AND CONTINGENCIES
Litigatio11
The City is a defendant in various lawsuits relating to easements, condemnations and
other matters as a result of the ordinary course of City activities. The City's
management and legal counsel anticipate that the potential claims against the City not
covered by insurance, if any, resulting from such matters would not materially affect
the financial position of the City.
NOTE 9 -INTER-FUND TRANSACTIONS
Inter-fund transfers for the year ended December 31, 2012, consisted of the
following:
Transfer from Capital Projects Fund $ 187.500
Transfer from Transportation Special Revenue Fund (Net) $ (569.000)
Transfer to Debt Service Fund $ 214.000
Transfer to Non-Major Governmental Funds $ 199.058
Transfer to General Fund (Net) $ (31.558)
Transfers are used to (I) move revenues from the fund that statute or budget requires
to collect them to the fund that statute or budget requires to expend them, (2) move
receipts restricted to debt service from the funds collecting the receipts to the debt
service fund as debt service payments become due, and (3) use unrestricted revenues
collected in the general fund to finance various programs accounted for in other funds
in accordance with budgetary authorizations.
45
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 10 -PENSION PLAN
Pfau Descriptio11
The City participates in the Missouri Local Government Employees Retirement
System (LAGERS), an agent multiple-employer public employee retirement system
that acts as a common investment and administrative agent for local government
entities in Missouri. LAGERS is a defined benefit pension plan, which provides
retirement, disability, and death benefits to plan members and beneficiaries.
LAGERS was created and is governed by statute, section RSMo. 70.600 -70.755.
As such, it is the system's responsibility to administer the law in accordance with the
expressed intent of the General Assembly. The plan is qualified under the Internal
Revenue Code Section 401(a) and it is tax exempt.
The Missouri Local Government Employees Retirement system issues a publicly
available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to LAGERS,
P.O. Box 1665, Jefferson City, MO 65102 or by calling 1-800-447-4334.
F1111dillg Status
Full-time employees of the City contribute 4% of their gross pay to the pension plan.
The 2012 statutorily required employer contribution rates are 4.1 % (General) and
4.6% (Police) of annual covered payroll. The contribution requirements of plan
members are determined by the governing body of the political subdivision. The
contribution provisions of the political subdivision are established by state statute.
A111111al Pe11sio11 Cost (APC) a11d Net Pe11sio11 Obligatio11 (NPO)
The subdivision's annual pension cost and net pension obligation for the current year
were as follows:
Annual Required Contribution
Interest on Net Pension Obligation
Adjustment to Annual Required Contribution
Annual Pension Cost
Actual Contributions
Increase (Decrease) in NPO
NPO Beginning of Year
NPO End of Year
46
$ 61,229
$
61,229
61.229
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 10 -PENSION PLAN -CONTINUED
The annual required contribution (ARC) was determined as part of the February 28,
2010 and February 28, 2011 annual valuation using the entry age actuarial cost
method. The actuarial assumptions included: (a) a rate of return on the investment of
present and future assets of 7.25% per year, compounded annually (b) projected
salary increases of 3.5% per year, compounded annually, attributable to inflation (c)
additional projected salary increases ranging from 0.0% to 6.0% per year, depending
on age and division, attributable to seniority/merit, (d) pre-retirement mortality based
on the 75% of the RP-2000 Combined Healthy table set back 0 years for men and 0
years for women, and ( e) post-retirement mortality based on 105% of the 1994 Group
Annuity Mortality table set back 0 years for men and 0 years for women. The
actuarial value of assets was determined using techniques that smooth the effects of
short-term volatility in the market value of investments over a five-year period. The
unfunded actuarial accrued liability is being amortized as a level percentage of
projected payrolls on a closed basis. The amortization period as of February 28, 2010
the initial actuarial valuation was 27 years for the General division and 27 years for
the Police division. The amortization period as of February 28, 2011 was 30 years for
the General division and 28 years for the Police division.
One-Year Trend lnfonnation
Year Annual Percentage Net
Ended Pension of APC Pension
June 30, Cost (APC) Contributed Obligation
20!0 $ 52,274 !00.0% $ 0
2011 $ 54,957 !00.0% $ 0
2012 $ 61,229 !00.0% $ 0
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress
(b) [(b-a)/c]
(a) Actuarial (b-a) (c) UAALas a
Actuarial Actuarial Accrued Un-funded (alb) Annual Percentage of
Valuation Value Liability Liability Funded Covered Covered
Date of Assets Entry Age (UAAL) Ratio Payi:oll Payi:oll
02-28-10 $ 70,422 $ 274,694 $ 204,272 26% $1,331,420 15o/o
02-28-11 $186,859 $ 415,164 $ 228,205 45% $1,335,830 17%
02-29-12 $288,350 $ 517,839 $ 229,489 56% $1,491,820 15%
The above assets and actuarial accrued liability do not include assets and present
value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve
Fund. The actuarial assumptions were changed in conjunction with the February 28,
2011, annual actuarial valuations. For a complete description of the actuarial
assumptions used in the annual valuations, please contact the LAGERS office in
Jefferson City.
47
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 11-DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES
ASC Topic 820, Fair Value lvleasurements, defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Topic 820 also specifies a fair
value hierarchy which requires an entity to maximize the use of observable inputs and
minimize the use of unobservable inputs when measuring fair value. The standard
describes three levels of inputs that may be used to measure fair value.
Level I Quoted prices in active markets for identical assets or liabilities
Level 2 Observable inputs other than Level I prices, such as quoted prices for
similar assets or liabilities; quoted prices in active markets that are not
active; or other inputs that are observable or can be corroborated by
observable market data for substantially the full term of the assets or
liabilities
Level 3 Unobservable inputs that are supported by little or no market activity
and that are significant to the fair value of the assets or liabilities
Following is a description of the valuation methodologies used for instruments
measured at fair value on a recurring basis and recognized in the accompanying
statement of financial position, as well as the general classification of such
instruments pursuant to the valuation hierarchy.
I11vest111e11ts
Where quoted market prices are available in an active market, securities are classified
within Level I of the valuation hierarchy. Level I securities include highly liquid
money market funds, U.S. Treasuries and exchange traded equities and mutual funds.
If quoted market prices are not available, then fair values are estimated by using
pricing models, quoted prices of securities with similar characteristics or discounted
cash flows. Level 2 securities include fixed income securities and pooled
investments. In certain cases where Level I or Level 2 inputs are not available,
securities are classified within Level 3 of the hierarchy.
48
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2012
NOTE 11 -DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITillS -
CONTINUED
The following table presents the fair value measurements of assets and liabilities
recognized in the accompanying Statement of Financial Position measured at fair
value on a recurring basis and level within the FAS 157 fair value hierarchy in which
the fair measurements fall at December 31, 2012.
Fair Value Measurements Using
Government Securities:
Trust Fund
Constn.iction Escrow
Debt Escrow
Fair Value
$152,639
$ 59,024
$643,992
NOTE12-SUBSEQUENTEVENTS
Quoted Prices
In Active
Markets for
Identical
Assets
(Level I)
$152,639
$ 59,024
$643,992
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level3)
On July 30, 2013, both the Brush Creek Sewer Project limited obligation notes and
the Brink Myers Road Project limited obligation notes were refinanced as follows:
Brush Creek Sewer
Brink Myers Road
Amount
Retired
$4,855,000
$3,000,000
Refinance
Amount
$4,935,000
$3,525,000
Both obligations bear interest at the rate of 2.5% and mature on August 1, 2014.
NOTE 13 -UPCOMING ACCOUNTING PRONOUNCEMENTS
In November 2010, the Government Auditing Standards Board (GASB,) who
establishes standards for government entities, issued Statement No. 60, Accounting
and Financial Reporting for Service Concession Arrangements. This statement
addresses financial reporting related to service concession arrangements which are a
type of public-private or public-public partnership. An SCA is an arrangement
between a transferor (a government) and an operator (whether a government or
49
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2012
NOTE 13 -UPCOMING ACCOUNTING PRONOUNCEMENTS -CONTINUED
nongovernment) in which the transferor conveys to an operator the right and
relation obligation to provide services through the use of infrastructure or another
public asset in exchange for significant consideration and the operator collects and is
compensated by fees from third parties. The statement will be effective for the City's
2013 fiscal year.
In December 2010, the GASB issued Statement No. 62, Codification of Accounting
and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and
AICP A Pronouncements. This statement incorporates into GASB literature certain
accounting and financial reporting guidance issued on or before November 30, 1989,
that is included in F ASB Statements and Interpretations, APB Opinions, and
Accounting Research Bulletins of the AI CPA Committee on Accounting Procedure.
The statement will be effective for the City's 2013 fiscal year.
In June 2011, the GASB issued Statement No. 63, Financial Reporting of Deferred
Outflows of Resources, Deferred Iriflows of Resources, and Net Position. The
statement will be effective for the City's 2013 fiscal year. The statement incorporates
deferred outflows of resources and deferred inflows of resources, as defined by
GASB Concepts Statement No. 4, into the definitions of the required components of
the residual measure of net position, formerly net assets. This statement also provides
a new statement of net position format to report all assets, deferred outflows of
resources, liabilities, deferred inflows of resources, and net position. Once
implemented, this statement will affect the format and reporting of the balance sheet
at the government-wide level and also at the fund level.
50
REQUIRED SUPPLEMENT ARY INFORMATION
Required supplementary information (RSI) includes financial information and disclosures
that are required by the GASB but are not considered a part of the basic financial statements.
Such information includes:
• Modified Approach to Infrastructure Reporting
• Budgetary Comparison Schedule -General Fund
51
CITY OF PARKVILLE, MISSOURI
REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2012
Information needed to support the use of the Modified Approach for Infrastructure Reporting:
Street and Parking Lot Assets
The street and parking lot condition rating is accomplished every other year or triennially.
Every street and parldng lot of Parkville is visually rated for observed structural conditions to
determine the level of preservation need. The field rating reflects the condition of the type of
street or parking lot being reviewed. It is the City's goal to repair all streets and parking lots
rated at a 6.0 or above and to maintain all streets within the City at a service level of 5.0 for
each respective type of street or parking lot.
A field rating scale has been developed to indicate the overall condition of the observed
street or parking lot.
1 Indicates an equivalent of a newly constructed street or parking lot (crack sealing and
minor patching)
2 Indicates slight imperfections in the street or parking lot condition (crack sealing, slurry
sealing, and/ or patching)
3 Indicates some deterioration has occurred and minor maintenance may be required (street
or parking lot needs various repairs to maintain condition; patches; possible milling and
overlay)
4 Indicates noticeable deterioration maintenance is required (deterioration is significant and
visually noticeable; repair mill and overlay)
5 Indicates significant maintenance is required (considerable cracking, potholes or other
fatigue demands repair work and overlay)
6 Indicates serious deficiency (deterioration mandates edge milling, to prevent total base
failure, needs overlay)
7 Indicates severe deficiency (severe deterioration needing various repairs)
8 Indicates major failure (some good street is left within a total replacement street or
parking lot condition)
9 Indicates nearly total replacement is required (limited salvage of street or parking lot area
is possible)
10 Indicates total replacement is required.
52
CITY OF PARKVILLE, MISSOURI
REQIBRED SUPPLEMENT ARY INFORMATION -CONTINUED
DECEMBER 31, 2012
While the City has goals to maintain these systems at higher levels, minimum acceptable
condition levels have been defined as having at least 80 percent of the streets and parking lots
at or below a rating of 5. The following table compares the minimum acceptable condition
levels with the actual condition levels for the current and prior years.
Minimum
Fiscal Acceptable Actual Condition
Year Condition Level* Level*
2005 80 94
2006 80 94
2007 80 94
2008 80 94
2009 80 94
2010 80 94
2011 80 94
2012 80 94
* Percentage of streets and parking Jots rated a 5 or below
The City's goal is to continually improve the condition of its streets and parking Jots. To
achieve this goal, it is necessary to perform maintenance activities and replace those assets
that can no longer be economically maintained. To maintain the City's streets and parking
lots at or above the stated minimum condition level, it is estimated that annual preservation
and replacement expenditures must exceed $349,000 annually. A total of$193,150 was spent
out of the Capital Improvements Fund. The major expenditures were for an asphalt overlay
($78,114), crack seal project ($8,356), slurry seal project ($46,681) and the curb and
sidewalk program ($60,000). The following table compares the estimated expenditures
needed to maintain the system at a minimum acceptable condition level with actual amounts
spent for the current and prior years.
Fiscal Estimated Actual
Year Exgenses Exgenses
2005 $ 246,519 $ 241,190
2006 $ 292,227 $ 292,579
2007 $246,819 $ 213,183
2008 $ 256,481 $ 246,886
2009 $ 233,000 $ 233,000
2010 $ 234,000 $190,172
2011 $ 205,000 $171,177
2012 $ 205,000 $ 193,150
53
CITY OF PARKVILLE, MISSOURI
NOTES TO REQIBRED SUPPLEMENTARY INFORMATION
BUDGET ARY DISCUSSION
FOR THE YEAR ENDED DECEMBER 31, 2012
Budgetary Accounting
The City prepares its budget for the General Fund and Other funds on the cash basis of
accounting. This basis is consistent with the basis of accounting used in presenting the
General Fund in the basic financial statements. All unexpended appropriations lapse at year
end.
Through the budget, the Board of Aldermen sets the direction of the City, allocates its
resources and establishes its priorities. The Annual Budget assures the efficient and effective
uses of the City's economic resources, as well as establishing that the highest priority
objectives are accomplished.
The Annual Budget covers the period from January 1, to December 31, and is a vehicle that
accurately and openly communicates these priorities to the community, businesses, vendors,
employees and other public agencies. Additionally, it establishes the foundation of effective
financial planning by providing resource planning, performance measures and controls that
permit the evaluation and adjustment of the City's performance.
The City's budget is prepared and based on various expenditure categories; personnel,
supplies and services, minor capital outlay and capital improvement programs. The first
three listed are considered operational in nature or known as recurring costs. Capital
improvement projects are asset acquisitions, facilities, systems, and infrastructure
improvements typically over $1,000 and/or those items 'outside' of the normal operational
budget. These are known as one-time costs.
The City collects and records revenue and expenditures within the Governmental Activities.
All funding sources are kept separate for both reporting and use of the money. The General
Fund is where most City services are funded that are not required to be segregated.
The budget process begins as a team effort in January of each year. Then the individual
departments use projected revenue assumptions to prioritize and recommend the next fiscal
year's objectives. The City Administrator's Office review all budget proposals and revenue
assumptions, as well as all current financial obligations before preparing the document that is
proposed to the Board of Aldermen. The Board of Aldermen reviews the Proposed Budget
and the final adoption of the budget is scheduled for approval in December.
54
CITY OF PARKVILLE, MISSOURI
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2012
Original Variance with
and Final Final Budget -
Budgeted Actual Positive
Amounts Amounts (Negative)
Revenues
Truces
Property $ 1,016,400 $ 1,047,260 $ 30,860
Franchise 825,000 834,696 9,696
Sales 883,000 804,795 (78,205)
Intergovernmental 41,300 58,582 17,282
Licenses and Permits 129,300 215,897 86,597
Charges for Services 20,400 17,496 (2,904)
Fines and Fees 195,100 325,275 130,175
Investment Earnings 28,000 26,295 (1,705)
Grants 3,665 3,665
Sewer Service Fees 75,000 75,000
Miscellaneous 75,500 98,573 23,073
FEMA 185,000 217,450 32,450
Transfer In 514,800 486,701 (28,099)
Total Revenues 3,988,800 4,211,685 222,885
Expenditures
Current:
General Government 1,060,650 1,281,966 (221,316)
Public Safety -Police 1,083,200 1,051,966 31,234
Public Safety -Court 146,750 140,325 6,425
Public Works 108,050 101,707 6,343
Community Development 279,700 266,648 13,052
Street 640,000 605,707 34,293
Parks 251, 100 253,337 (2,237)
Nature Sanctuary 18,250 17,489 761
Channel 2/Website 36,700 30,637 6,063
Transfer Out 461,500 567,558 (106,058)
Total Expenditures 4,085,900 4,317,340 (231,440)
Excess of Revenues over Expenditures $ (97, I 00) $ (I 05,655) $ (8,555)
The accompanying notes are an integral part of the financial statements.
55
OTHER SUPPLEMENTARY INFORMATION
56
Reserve
Funds
Assets
Cash and Cash Equivalents $ 728,846
Restricted Cash and Investments
Other Receivables
Total Assets $ 728,846
Liabilities
Accounts Payable $ -
Fund Balances
Unreserved, Reported in:
Special Revenue Funds 728,846
Community Bcttennent
Total Fund Balances 728,846
Total Liabilities and Fund Balances $ 728,846
CITY OF PARKVILLE, MISSOURI
COMBINING BALANCE SHEET
NONMAJORGOVERNMENTALFUNDS
DECEMBER 31, 2012
·---·--
Sf!ecial Revenue
Municipal Equip Guest Room Nature Park
Reserve Tax Sanctu!.!!2'. Donations
$ 8,574 $ 310 $ 41,130 $ 70,847
$ 8,574 $ 310 $ 41,130 $ 70,847
$ 5,399 $ -$ -$ -
3,175 310 41,130 70,847
3,175 310 41,130 70,847
$ 8,574 $ 310 $ 41,130 $ 70,847
57
Parkland Court
Dedication Recoupment Fees
$ 43,361 $ 32,620
-
$ 43,361 $ 32,620
$ -$
43,361 32,620
43,361 32,620
$ 43,361 $ 32,620
Police Training
Fees-LET
Assets
Cash and Cash Equivalents $ 1,081,256
Restricted Cash and Investments
Other Receivables
Total Assets $ 1,081,256
Liabilities
Accounts Payable $ -
Fund Balances
Unreserved, Reported in
Special Revenue Funds 1,081,256
Community Betterment
Total Fund Balances 1,081,256
Total Liabilities and Fund Balances $ 1,081,256
CITY OF PARKVILLE, MISSOURI
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2012
SQecial Revenue
TIF Market Place
DeveloEment DeveloEment Other Total
$ 17,089 $ 12,233 $ 106 2,036,372
$ 17,089 $ 12,233 $ 106 $ 2,036,372
$ -$ -$ -$ 5,399
17,089 12,233 106 2,030,973
17,089 12,233 106 2,030,973
$ 17,089 $ 12,233 $ 106 $ 2,036,372
58
Total
Permanent Nonmajor
Fe\\'son Governmental
~ect Funds
$ $ 2,036,372
545,519 545,519
$ 545,519 $ 2,581,891
$ -$ 5,399
2,030,973
545,519 545,519
545,519 2,576,492
$ 545,519 $ 2,581,891
CITY OF PARKVILLE, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
S ecial Revenue
Reserve Municipal Equip Guest Room Nature Park Parkland Court
Funds Reserve Tax Sanctu!!!}'. Donations Dedication Recoupment Fees
Revenues
Investment Earnings $ -$ -$ $ $ $
TIF Revenue
Legal Settlement
Miscellaneous 3,001 8,265 1,554 1,905
Total Revenues 3,001 8,265 1,554 1,905
Expenditures
Current
General Government 20,000 1,668 159
TIF Expense
Capital Outlay 154,366
Total Expendilures 154,366 20,000 1,668 159
Excess (Deficiency) of Revenues
Over (Under) Expenditures (154,366) (16,999) 6,597 1,395 1,905
Other Financing Sources (Uses)
Other
Transfers In (Out) 106,058 73,000 20,000
Total Other Financing Sources 106,058 73,000 20,000
Net Change in Fund Balances 106,058 (81,366) 3,001 6,597 1,395 1,905
Fund Balances, Beginning of Year 622,788 84,541 (2,691) 34,533 69,452 43,361 30,715
Fund Balances, End of Year $ 728,846 $ 3,175 $ 310 $ 41,130 $ 70,847 $ 43,361 $ 32,620
59
CITY OF PARKVILLE, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2012
-Total
SEecial Revenue Permanent Nonrnajor
Police Training TIF Market Place fe\vson Governmental
Fees-LET DcveloEment DeveloEment Other Total ~ect Funds
Revenues
Investment Earnings $ $ 202 $ 25 $ $ 227 $ 13,851 $ 14,078
TIF Revenue -419,707 419,707 419,707
Legal Settlement 1,075,012 1,075,012 1,075,012
Miscellaneous 7,425 22, 150 22,150
Total Revenues 1,082,437 419,909 25 1,517,096 13,851 1,530,947
Expenditures
Current
General Government 37, 756 59,583 6,820 66,403
TIF Expense -415,237 415,237 415,237
Capital Outlay 154,366 154,366
Total Expenditures 37,756 415,237 629,186 6,820 636,006
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,044,681 4,672 25 887,910 7,031 894,941
Other Financing Sources (Uses)
Other
Transfers In (Out) 199,058 199,058
Total Other Financing Sources 199,058 199,058
Net Change in Fund Balances 1,044,681 4,672 25 1,086,968 7,031 1,093,999
Fund Balances, Beginning of Year 36,575 12,417 12,208 106 944,005 538,488 1,482,493
Fund Balances, End of Year $ 1,081,256 $ 17,089 $ 12,233 $ 106 $ 2,030,973 $ 545,519 $ 2,576,492
60