HomeMy Public PortalAbout2016 Audit
City of Parkville, Missouri
Basic Financial Statements
With
Independent Auditor’s Report
For the Year Ended
December 31, 2016
CITY OF PARKVILLE, MISSOURI
TABLE OF CONTENTS
Page
Independent Auditor’s Report 1-2
Management’s Discussion and Analysis 3-10
Basic Financial Statements:
Exhibit
Government-wide Financial Statements:
Statement of Net Position A 11
Statement of Activities B 12
Fund Financial Statements:
Balance Sheet – Governmental Funds C 13
Reconciliation of the Balance Sheet - Governmental Funds to
the Statement of Net Position 14
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds D 15
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances – Governmental Funds to the Statement of Activities 16
Statement of Net position – Proprietary Funds E 17
Statement of Revenues, Expenses and Changes in Fund Net position –
Proprietary Funds F 18
Statement of Cash Flows - Proprietary Funds G 19
Statement of Assets and Liabilities – Fiduciary Funds H 20
Notes to the Basic Financial Statements 21-39
Schedule Page
Required Supplementary Information:
Notes to Required Supplementary Information 40
Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – General Fund 1 41
Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – Transportation Sales Tax Fund 2 42
Schedule of Changes in Net Pension Liability and Related Ratios 3 43
Schedule of Employer Contributions 4 44
ii
CITY OF PARKVILLE, MISSOURI
TABLE OF CONTENTS, Continued
Schedule Page
Other Supplementary Information
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – General Fund 5 45
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – General Fund 6 46
Combining Balance Sheet – Debt Service Fund 7 47
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Debt Service Fund 8 48
Combining Balance Sheet – Non-major Governmental Funds 9 49
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Non-major Governmental Funds 10 50
Schedules of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual –
Reserve Fund 11 51
Debt Service Fund 12 52
Economic Development 13 53
Nature Sanctuary 14 54
Parks Donation 15 55
Fewson Fund 16 56
Capital Projects 17 57
1
COCHRAN HEAD VICK & CO., P.C.
Certified Public Accountants
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and
Board of Aldermen
City of Parkville, Missouri
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Parkville, Missouri (the City) as of and for the year ended December 31, 2016, 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
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to the financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan 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, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City as of December 31,
2016, 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.
1251 NW Briarcliff Pkwy
Suite 125
Kansas City, MO 64116
(816) 584-9955
Fax (816) 584-9958
Other offices in Missouri
and Kansas
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison information, schedule of changes in net pension liability and
related ratios and schedule of employer contributions as listed in the table of contents 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. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City'sbasic financial statements. The introductory section, combining and individual non -major
fund financial statements and schedules, and statistical section are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual non -major fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual non -major fund financial statements and schedules are fairly stated in all material
respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 13, 2017, on
our consideration of the City's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control over financial reporting and compliance.
Kansas City, Missouri
June 13, 2017
r-c-jc C
2
3
CITY OF PARKVILLE, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2016
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, 2016. We encourage readers to consider the information
presented here in conjunction with the basic financial statements and the accompanying notes
to those financial statements.
Financial Highlights
1. The assets and deferred outflows of the City of Parkville exceeded its liabilities and
deferred inflows at the close of the year by $9,891,836 (net position), an increase of
$398,507 over the prior year.
2. As of the close of the current year, the City’s governmental funds showed a combined
ending balance of $5,189,220, an increase of $505,085 from the prior year.
Approximately 30.7 percent of the fund balance, $1,596,231 is unassigned and available
for spending at the City’s discretion.
3. The City’s total long-term debt decreased $455,651. Debt connected with the City’s
government activities decreased $302,732 and debt connected with the City’s business-
type activities decreased $152,919.
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 are comprised of three components;
government-wide financial statements, fund financial statements, and notes to the basic
financial statements. This report also contains required and other supplementary information in
addition to the basic financial statements.
Reporting the City as a Whole
Our analysis of the City as a whole begins on page 6. One of the most important questions
asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of
the year’s activities?” The Statement of Net Position and the Statement of Activities reports
information about the City as a whole and its activities in a way that helps answer this question.
These statements include all assets, deferred outflows, liabilities, and deferred inflows using the
accrual basis of accounting, which is similar to the accounting used by most private-sector
companies. All of the current year’s revenues and expenses are taken into account regardless
of when cash is received or paid.
4
The Statement of Net Position and the Statement of Activities report the City’s net position and
changes in it. You can think of the City’s net position—the difference between assets and
deferred outflows less liabilities and deferred inflows—as one way to measure the City’s
financial health, or financial position. Over time, increases or decreases in the City’s net position
are one indicator of whether its financial health is improving or deteriorating. You will need to
consider other non-financial factors, however, such as changes in the City’s property tax base
and the condition of the City’s roads, to assess the overall health of the City.
To aid in the understanding of the Statement of Activities, some additional explanation is given.
Of particular interest is that the format is significantly different than a typical Statement of
Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are listed in
the first column with revenues from that particular program reported to the right. The result is a
Net (Expense)/Revenue. The reason for this kind of format is to highlight the relative net
financial costs of each of the functions on the City's taxpayers. It also identifies how much each
function draws from the general revenues or if it is self-financing through fees and grants.
In the Statement of Net Position and the Statement of Activities, we divide the City into two
kinds of activities:
Governmental activities—Most of the City’s basic services are reported here, including general
government, public safety, public works, parks and recreation, and community development.
Taxes, (sales, property, and franchise) charges for services, fines, and state and federal grants
finance most of these activities.
Business-type activities—The City charges a fee to customers to help it cover all or most of the
cost of certain services it provides. The City’s sanitary sewer fund activities are reported here.
Reporting the City’s Most Significant Funds - Fund Financial Statements
The fund financial statements begin on page 13 and provide detailed information about the most
significant funds—not the City as a whole. Some funds are required to be established by State
law and by bond covenants. The City establishes other funds to help it control and manage
money for particular purposes. The City uses three types of funds to manage its resources:
governmental, proprietary, and agency funds. A fund is a fiscal entity with a set of self-balancing
accounts recording financial resources, together with all related liabilities and residual equities
and balances, and the changes therein. These accounting entities are separated for the
purpose of carrying on specific activities or attaining certain objectives in accordance with
regulations, restrictions or limitations.
5
Governmental funds—Most of the City’s basic services are reported in governmental funds,
which focus on how money flows into and out of those funds and the balances left at year-end
that are available for spending. These funds are reported using an accounting method called
modified accrual accounting, which measures cash and all other financial assets that can readily
be converted to cash. The governmental fund statements provide a detailed short-term view of
the City’s general government operations and the basic services it provides. Governmental fund
information helps you determine whether there are more or fewer financial resources that can
be spent in the near future to finance the City’s programs. We describe the relationship (or
differences) between governmental activities (reported in the Statement of Net Position and the
Statement of Activities) and governmental funds in the reconciliation following the fund financial
statements.
Proprietary funds—When the City charges customers for the services it provides, these
services are generally reported in proprietary funds. Proprietary funds are reported in the same
way that all activities are reported in the Statement of Net Position and the Statement of
Activities. In fact, the City’s sewer enterprise fund, is the same as the business-type activities
we report in the government-wide statements but provides more detail and additional
information, such as cash flows.
Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements, since the resources of those funds are not available to support the City’s
operations. The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Basic 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.
Other Information
In addition to the basic financial statements and accompanying notes, this report also contain
certain required supplemental information that further explains and supports the information in
the financial statements. This report also contains other supplementary information that
provides certain combining and individual fund statements and schedules.
6
Government-Wide Financial Analysis
Our analysis below focuses on net position (Figure 1) and changes in net position (Figure 2) of
the governmental and business-type activities.
Figure 1 – Statement of Net Position
Activities Activities Total
2016 2015 2016 2015 2016 2015
Current and other assets 12,109,872$ 11,919,946$ 744,511$ 1,224,469$ 12,854,383$ 13,144,415$
Capital assets 10,141,308 9,650,764 3,469,410 3,571,218 13,610,718 13,221,982
Total assets 22,251,180 21,570,710 4,213,921 4,795,687 26,465,101 26,366,397
Deferred charge on refunding 30,160 33,127 - - 30,160 33,127
Deferred outflows - pension 207,311 86,658 - - 207,311 86,658
Total deferred outflows of resources 237,471 119,785 - - 237,471 119,785
Long-term debt 14,440,725 14,667,277 1,365,432 1,518,351 15,806,157 16,185,628
Other liabilities 583,771 355,789 168,908 245,828 752,679 601,617
Total liabilities 15,024,496 15,023,066 1,534,340 1,764,179 16,558,836 16,787,245
Deferred inflow - property taxes 157,088 163,377 - - 157,088 163,377
Deferred inflow - pension 94,812 42,231 - - 94,812 42,231
Total deferred intflows of resources 251,900 205,608 - - 251,900 205,608
Net position:
Net investment in capital assets 2,914,182 2,338,456 2,103,978 2,052,867 5,018,160 4,391,323
Restricted 2,044,441 1,703,206 163,509 174,709 2,207,950 1,877,915
Unrestricted 2,253,632 2,420,159 412,094 803,932 2,665,726 3,224,091
Total net position 7,212,255$ 6,461,821$ 2,679,581$ 3,031,508$ 9,891,836$ 9,493,329$
Governmental Business-type
Net position may serve over time as a useful indicator of a government's financial position. The
City of Parkville’s assets and deferred outflows exceeded liabilities and deferred inflows by
$9,891,836 at the close of the year ended December 31, 2016.
7
Figure 2 – Statement of Changes in Net Position
Activities Activities Total
Revenues:
Program revenues:
Charges for services 739,645$ 683,966$ 1,067,089$ 1,096,800$ 1,806,734$ 1,780,766$
Operating grants and contributions 304,166 256,108 - - 304,166 256,108
Capital grants and contributions 1,493,568 1,080,809 40,876 45,143 1,534,444 1,125,952
General revenues:
Property taxes 1,497,861 1,436,359 - - 1,497,861 1,436,359
Sales taxes 1,695,966 1,685,328 - - 1,695,966 1,685,328
Franchise taxes 859,041 813,440 - - 859,041 813,440
Intergovernmental activity taxes 177,307 160,125 - - 177,307 160,125
Other taxes 1,397 3,254 - - 1,397 3,254
Other 76,030 114,003 9,168 9,594 85,198 123,597
Total revenues 6,844,981 6,233,392 1,117,133 1,151,537 7,962,114 7,384,929
Expenses:
General government 1,139,101 1,147,866 - - 1,139,101 1,147,866
Public safety 1,323,123 1,313,066 - - 1,323,123 1,313,066
Public works 1,623,834 1,541,591 - - 1,623,834 1,541,591
Parks and recreation 517,469 435,047 - - 517,469 435,047
Community development 1,057,849 3,556,318 - - 1,057,849 3,556,318
Interest on long-term debt 433,171 627,024 - - 433,171 627,024
Sewer - - 1,469,060 1,389,633 1,469,060 1,389,633
Total expenses 6,094,547 8,620,912 1,469,060 1,389,633 7,563,607 10,010,545
Change in net position 750,434 (2,387,520) (351,927) (238,096) 398,507 (2,625,616)
Net position, beginning 6,461,821 8,849,341 3,031,508 3,269,604 9,493,329 12,118,945
Net position, ending 7,212,255$ 6,461,821$ 2,679,581$ 3,031,508$ 9,891,836$ 9,493,329$
20152016
Governmental Business-type
20162016 2015 2015
The City's net position increased $398,507 during the 2016 fiscal year. Of the total,
governmental activities net position increased $750,434 and business-type activities net position
decreased by $351,927. Total 2016 governmental revenue increased $611,589 over 2015
mostly due to increases in contributed infrastructure capital assets. Total governmental activities
expenses decreased $2,526,365. The decrease is primarily attributable to Community
Development expenses related to certain properties and special assessment receivable
adjustments associated with the Brink Meyer Road and Brush Creek Drainage Neighborhood
Improvement Districts that occurred in 2015. See Note 7A in the Notes to the Basic Financial
Statements on page 32 for additional details.
Total 2016 business-type activities revenues decreased slightly over 2015. Total business-type
expenses increased $79,427 resulting from intentional additional repair and maintenance
expenses to catch up on deferred maintenance.
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
8
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the
City’s financing requirements. In particular, unassigned fund balances may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
As mentioned earlier in this analysis, at the end of the current fiscal year, the City’s
governmental funds reported combined ending fund balances of $5,189,220. Of this amount
$3,592,989 is non-spendable, restricted committed or assigned for various purposes and
$1,596,231 is unassigned.
The general fund is the main operating fund of the City. At the end of the current fiscal year the
general fund balance was $3,133,606. As a measure of the general fund’s liquidity, it is useful to
compare unassigned fund balance to total fund expenditures. Unassigned fund balance
represents 43.3% of total general fund expenditures. Included in the general fund’s committed
fund balance is the City’s reserve fund which totaled $1,458,275 at December 31, 2016.
The City’s fund balance of the general fund increased by $209,421 during the current fiscal
year. General Fund revenues increased by $158,602 over 2015 primarily related to increases in
property and franchise taxes. 2016 general fund expenditures, excluding transfers out, were
approximately $301,807 more than 2015. The increase is mostly attributable to parks and
community development capital outlay.
At December 31, 2016, the transportation sales tax fund has an ending fund balance of
$287,412, all of which is restricted. The fund balance decreased by $32,636 during the year
primarily related to the 2016 asphalt overlay program.
The debt service fund has a total fund balance of $973,266, all of which is restricted for the
payment of principal, interest and fees. The fund balance increased by $331,057 during the
year. The increase eliminated the deficit beginning fund balance in the COPS debt service fund
that resulted from refunding the 2003 COPS in 2015.
Proprietary Fund
The City’s proprietary fund provides the same type of information found in the government-wide
financial statements, but in more detail. The net position of the sewer fund at the end of the year
totaled $2,679,581 of which $424,422 is unrestricted. The sewer fund’s net position decreased
by $351,927 from the prior year due to an increase in repair and maintenance expenses.
General Fund Actual to Budget Analysis
Actual revenues exceed budgeted revenues by $75,375 as taxes, intergovernmental, and other
revenues exceed budgeted revenues which more than offset the fines and forfeiture budget to
actual deficit. Actual expenditures were $435,729 under the final budget. The city routinely
outperforms budget due to careful management, conservative budgeting, and personnel savings
due to routine vacancies throughout the year. The City budgeted an increase in 2016 for legal
expenses due to anticipated needs for code enforcement, economic development, and litigation.
Fortunately costs were managed well below budget. Additional savings were realized in Vehicle
& Equipment Gas & Oil as anticipated price increases didn’t come to fruition.
9
Capital Asset and Debt Administration
Capital Assets
At the end of year, the City had $13,610,718 invested in capital assets including land, buildings,
equipment, vehicles, infrastructure, and sewer lines net of accumulated depreciation. (See table
below) This represents a net increase of $388,736 from last year as current year capital asset
additions exceeded depreciation expense.
City of Parkville, Missouri
Capital Assets (Net of Depreciation)
Additional information on the City’s capital assets can be found in Note 6 in the Notes to the
Basic Financial Statements.
2016 2015 2016 2015 2016 2015
Land 869,880$ 869,880$ 59,975$ 59,975$ 929,855$ 929,855$
Buildings & Improvements 3,213,826 3,195,009 1,962,025 2,015,051 5,175,851 5,210,060
Equipment & Vehicles 461,403 452,240 49,028 48,455 510,431 500,695
Infrastructure 5,596,199 5,133,635 1,398,382 1,447,737 6,994,581 6,581,372
Total 10,141,308$ 9,650,764$ 3,469,410$ 3,571,218$ 13,610,718$ 13,221,982$
Total
Governmental Business-Type
Activities Activities
Long-Term Obligations - At the end of the current fiscal year, the City had total long-term
obligations outstanding of $15,480,484.
City of Parkville, Missouri
Outstanding Debt
2016 2015 2016 2015 2016 2015
Limited General Obligation
Bonds (plus premium) 10,688,426$ 10,993,523$ -$ -$ 10,688,426$ 10,993,523$
Certificates of Participation
(less discount) 3,383,722 3,383,722 - - 3,383,722 3,383,722
Compensated Absences 42,904 40,539 - - 42,904 40,539
Revenue Bonds (plus premium) - - 1,365,432 1,518,351 1,365,432 1,518,351
Total 14,115,052$ 14,417,784$ 1,365,432$ 1,518,351$ 15,480,484$ 15,936,135$
Total
Governmental Business-Type
Activities Activities
The government activities decreased $302,732 and the business-type activities decreased
$152,919.
Additional information on the City’s long-term obligations can be found in Note 7 in the Notes to
the Basic Financial Statements.
10
Economic Factors and Next Year’s Budgets and Rates
As in prior years, the City budgeted cautiously, holding 2017 revenues and expenditure budgets
at or near 2016 levels. The 2017 budget maintains essential services at current levels and
directs limited additional resources toward the 2017 Priorities as established by the Board of
Aldermen in July 2016. The priorities include implementing a viable strategy to develop the
Highway 45/435 Corridor, improving streets and sewers and reviewing and ensuring a proper
package of basic services while assessing value and cost. The City is fortunately experiencing
steady growth in its retail, residential, and commercial base that bodes well for future financial
security. The Board continues to exercise caution when implementing new projects and
expanding services due to the debt burden associated with the Brush Creek Drainage and Brink
Meyer Road Neighborhood Improvement Districts (NIDs). However, the NID properties show
strong development potential, so the City should not forgo opportunities. The City continues to
take advantage of grant opportunities and strategic financing.
Contacting the City’s Financial Management
This report is designed to provide our citizens, taxpayers, customers and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for the
money it receives. If you have questions about this report or need additional financial
information, contact the City Clerk’s office, Parkville, Missouri.
Exhibit A
Governmental Business-type
Activities Activities Total
Assets
Cash and investments 3,771,067$ 433,669$ 4,204,736$
Receivables:
Taxes 322,027 - 322,027
Special assessments 4,211,680 - 4,211,680
Accounts and other 1,048 132,009 133,057
Due from other governments 17,891 - 17,891
Prepaids, deposits, and other assets 79,100 1,839 80,939
Restricted assets:
Cash and investments 1,607,059 176,994 1,784,053
Land held for redevelopment 2,100,000 - 2,100,000
Capital assets:
Not being depreciated 869,880 59,975 929,855
Being depreciated, net of depreciation 9,271,428 3,409,435 12,680,863
Total assets 22,251,180 4,213,921 26,465,101
Deferred Outflows of Resources
Deferred charges on refunding 30,160 - 30,160
Deferred outflow - pension related activity 207,311 - 207,311
Total deferred outflows of resources 237,471 - 237,471
Liabilities
Accounts payable 350,075 122,024 472,099
Accrued payroll and benefits 84,215 555 84,770
Accrued interest 149,481 32,844 182,325
Payable from restricted assets:
Customer deposits - 13,485 13,485
Long term debt:
Net pension liability 325,673 - 325,673
Due within one year 1,000,115 157,919 1,158,034
Due in more than one year 13,114,937 1,207,513 14,322,450
Total liabilities 15,024,496 1,534,340 16,558,836
Deferred Inflows of Resources
Deferred inflow - property taxes 157,088 - 157,088
Deferred inflow - pension related activity 94,812 - 94,812
Total deferred inflows of resources 251,900 - 251,900
Net Position
Net investment in capital assets 2,914,182 2,103,978 5,018,160
Restricted :
Capital projects 292,307 - 292,307
Debt service 973,266 163,509 1,136,775
Public safety 92,711 - 92,711
Parks and recreation 93,455 - 93,455
Community development 23,155 - 23,155
Fewson trust (non-expendable) 569,547 - 569,547
Unrestricted 2,253,632 412,094 2,665,726
Total net position 7,212,255$ 2,679,581$ 9,891,836$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Net Position
December 31, 2016
Primary Government
11
Net (Expense) Revenue and Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Government activities
General government 1,139,101$ 502,314$ -$ -$ (636,787)$ -$ (636,787)$
Public safety 1,323,123 195,920 9,722 - (1,117,481) - (1,117,481)
Public Works 1,623,834 - 249,616 1,431,864 57,646 - 57,646
Parks and recreation 517,469 41,411 44,828 61,704 (369,526) - (369,526)
Community development 1,057,849 - - - (1,057,849) - (1,057,849)
Interest on long-term debt 433,171 - - - (433,171) - (433,171)
Total governmental activities 6,094,547 739,645 304,166 1,493,568 (3,557,168) - (3,557,168)
Business-type activities
Sewer 1,469,060 1,067,089 - 40,876 - (361,095) (361,095)
Total business-type activities 1,469,060 1,067,089 - 40,876 - (361,095) (361,095)
Total primary government 7,563,607$ 1,806,734$ 304,166$ 1,534,444$ (3,557,168) (361,095) (3,918,263)
General revenues:
Taxes:
Property taxes, levied for general purpose 1,159,454 - 1,159,454
Property taxes, levied for debt service 338,407 - 338,407
Sales taxes 1,695,966 - 1,695,966
Franchise taxes 859,041 - 859,041
Intergovernmental activity taxes 177,307 - 177,307
Other taxes 1,397 - 1,397
Unrestricted investment earnings 21,331 4,538 25,869
Gain on disposal of capital assets 10,625 - 10,625
Miscellaneous 44,074 4,630 48,704
Total general revenues 4,307,602 9,168 4,316,770
Change in net position 750,434 (351,927) 398,507
Net position, beginning of year 6,461,821 3,031,508 9,493,329
Net position, end of year 7,212,255$ 2,679,581$ 9,891,836$
See accompanying notes to the basic financial statements
Program Revenues Primary Government
CITY OF PARKVILLE, MISSOURI
Statement of Activities
For the Year Ended December 31, 2016
12
Ex
h
i
b
i
t
B
Exhibit C
Transportation Other Total
Sales Tax Debt Service Governmental Governmental
General Fund Fund Funds Funds
Assets
Cash and investments 3,235,707$ 300,538$ -$ 234,822$ 3,771,067$
Receivables:
Taxes 251,803 70,224 - - 322,027
Special assessments - - 4,211,680 - 4,211,680
Accounts and other 1,048 - - - 1,048
Due from other governments 5,660 12,231 - - 17,891
Due from other funds - - - - -
Prepaids, deposits and other assets 79,100 - - - 79,100
Restricted cash and investments - - 1,032,617 574,442 1,607,059
Total Assets 3,573,318$ 382,993$ 5,244,297$ 809,264$ 10,009,872$
Liabilities
Accounts payable 240,166$ 95,581$ -$ 14,328$ 350,075$
Accrued payroll and benefits 84,215 - - - 84,215
Total Liabilities 324,381 95,581 - 14,328 434,290
Deferred inflows of resources
Unavailable revenues 115,331 - 4,271,031 - 4,386,362
Fund balances:
Nonspendable:
Prepaid Items 79,100 - - - 79,100
Fewson trust - - - 569,547 569,547
Restricted:
Capital projects - 287,412 - 4,895 292,307
Debt service - - 973,266 - 973,266
Public safety - - - 92,711 92,711
Parks and recreation - - - 93,455 93,455
Community development - - - 23,155 23,155
Committed:
Emergency reserve 1,458,275 - - - 1,458,275
Assigned:
Capital projects - - - 11,173 11,173
Unassigned 1,596,231 - - - 1,596,231
Total fund balance 3,133,606 287,412 973,266 794,936 5,189,220
Total liabilities, deferred inflows
and fund balances 3,573,318$ 382,993$ 5,244,297$ 809,264$ 10,009,872$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Balance Sheet - Governmental Funds
December 31, 2016
13
Exhibit C
Continued
Fund balances of governmental funds 5,189,220$
4,229,274
10,141,308
2,100,000
30,160
112,499
(149,481)
(325,673)
Long-term liabilities (14,115,052)
Net position of governmental activities 7,212,255$
See accompanying notes to the basic financial statements
The issuance of long-term debt 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 has anyeffect on net
position. Also, governmental funds report the effect of premiums, discounts and
similar items when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities. This amount is the net effect of these
differences in the treatment of long-term debt and related items:
Deferred charges on refunding are not due and payable in the current period and
therefore not reported in the governmental fund statements
Deferred outflows and inflows related to pension activity are not required to be
reported in the governmental funds but are required to be reported in the Statement
of Net Position
The net pension liability is not due and payable and therefore is not recorded in the
governmental fund statements.
Long-term assets are not available to pay for current period expenditures and are
therefore deferred in the fund statements
Liabilities for interest on long-term debt are recognized only when due in the
governmental fund statements but are accrued in the government-wide statements.
Long-term assets held for redevelopent are not reported in the fund statements
Amounts reported for governmental activities in the statement of net position are
different because:
CITY OF PARKVILLE, MISSOURI
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position
December 31, 2016
Capital assets used in governmental activities are not financial resources and
therefore are not reported in the governmental fund statements.
14
Exhibit D
Transportation Other Total
Sales Tax Debt Service Governmental Governmental
General Fund Fund Funds Funds
Revenues:
Taxes 2,986,632$ 454,601$ 338,407$ 274,625$ 4,054,265$
Intergovernmental 102,073 523,590 - 358,406 984,069
Charges for services 41,411 - - 4,194 45,605
Fines and forfeitures 191,726 - - - 191,726
Licenses and permits 328,239 - - - 328,239
Special assessments - - 558,073 - 558,073
Grants and donations - - - 78,243 78,243
Charges for sewer administration 103,530 - - - 103,530
Interest 8,149 - 7,922 5,259 21,330
Other 97,215 17,405 - 1,500 116,120
Total Revenues 3,858,975 995,596 904,402 722,227 6,481,200
Expenditures:
Current:
General government 1,015,849 - - - 1,015,849
Public safety 1,246,581 - - 9,541 1,256,122
Public works 596,184 - - - 596,184
Parks and recreation 473,540 - - 11,284 484,824
Community development 357,684 - - 451,539 809,223
Capital outlay - 838,232 - 268,530 1,106,762
Debt service:
Principal - - 280,000 - 280,000
Interest and fiscal charges - - 437,776 - 437,776
Total Expenditures 3,689,838 838,232 717,776 740,894 5,986,740
Excess of Revenues Over (Under) Expenditures 169,137 157,364 186,626 (18,667) 494,460
Other financing sources (uses):
Transfers in 190,000 - 144,431 15,910 350,341
Transfers out (160,341) (190,000) - - (350,341)
Sale of capital assets 10,625 - - - 10,625
Total Other Financing Sources (Uses) 40,284 (190,000) 144,431 15,910 10,625
Net change in fund balances 209,421 (32,636) 331,057 (2,757) 505,085
Fund balances, beginning of year 2,924,185 320,048 642,209 797,693 4,684,135
Fund balances, end of year 3,133,606$ 287,412$ 973,266$ 794,936$ 5,189,220$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds
For the Year Ended December 31, 2016
15
Exhibit D
(continued)
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances - total governmental funds 505,085$
Governmental funds report capital outlays as expenditures. However,
intheStatementof Activitiesthecost of those assetsis allocated over
their estimated useful lives and reported as depreciation expense.
Capital outlay costs in excess of capitalization threshold 310,972
Depreciation (453,584)
Donated capital assets 633,156
Revenues in the statement of activities that do not provide current
financial resources are reported as deferred inflows in the
governmental funds.
Special assessments (519,327)
The issuance of long-term debt 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 has any effect on net position.
Principal payments on long-term debt 280,000
Changes in unamortized bond issuance discount and premium 22,130
Changes in accrued interest expense (17,525)
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.
Change in compensated absences and net pension obligations (10,473)
Change in net position of governmental activities 750,434$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances -
For the Year Ended December 31, 2016
Governmental Funds to the Statement of Activities
16
Exhibit E
Sewer
Fund
Assets
Current assets:
Cash and investments 433,669$
Receivables, net:
Accounts and other 132,009
Prepaid expenses 1,839
Restricted cash and investments 176,994
Total current assets 744,511
Noncurrent assets:
59,975
3,409,435
Total noncurrent assets 3,469,410
Total assets 4,213,921
Liabilities
Current liabilities:
Accounts payable 122,024
Accrued liabilities 555
Current liabilities (payable from restricted assets):
Customer deposits 13,485
Interest payable 32,844
Current portion of bonds payable 157,919
Total current liabilities: 326,827
Long-term liabilities:
Bonds payable 1,207,513
Total long-term liabilities: 1,207,513
Total liabilities 1,534,340
Net position
Net investment in capital assets 2,103,978
Restricted net position for:
Debt service 163,509
Unrestricted 412,094
Total net position 2,679,581$
See accompanying notes to the basic financial statements
Being depreciated, net of depreciation
CITY OF PARKVILLE, MISSOURI
Statement of Net Position
Proprietary Fund
December 31, 2016
Capital assets:
Not being depreciated
17
Exhibit F
Sewer
Fund
Operating revenues:
Charges for services 1,067,089$
Other 4,630
Total operating revenues 1,071,719
Operating expenses:
Personnel Services 21,826
Contractual Services 310,130
Administrative Fee 103,530
Depreciation 243,249
Repairs and maintenance 680,298
Other 51,938
Total operating expenses 1,410,971
Operating income (loss) (339,252)
Nonoperating revenues (expenses):
Intergovernmental 40,876
Interest income 4,538
Interest expense (58,089)
Total nonoperating revenues (expenses) (12,675)
Change in net position (351,927)
Total net position, beginning of year 3,031,508
Total net position, end of year 2,679,581$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Fund
For the Year Ended December 31, 2016
18
Exhibit G
Sewer
Fund
Cash flows from operating activities:
Receipts from customers and others 1,061,084$
Payments to suppliers (1,218,838)
Payments to employees (22,179)
Net cash provided by (used in) operating activities (179,933)
Cash flows from investing activities:
Interest received 45,414
Net cash flows provided by (used in) investing activities 45,414
Cash flows from capital
and related financing activities:
Purchases of capital assets (141,441)
Interest and fiscal charges (69,633)
Principal payments on long-term debt (145,000)
Net cash flows provided by (used in) capital
and related financing activities (356,074)
Net change in cash and equivalents (490,593)
Cash and equivalents, beginning of year 1,101,256
Cash and equivalents, end of year 610,663$
Cash and investments reported on the
Statement of Net Position
Cash and investments 433,669$
Restricted cash and investments 176,994
Total cash and investments 610,663$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
Operating income (loss) (339,252)$
Adjustments to reconcile operating loss to
net cash used by operations:
Depreciation and amortizatoin 243,249
Changes in:
Receivables (10,635)
Accounts payable (72,942)
Accrued liabilities (353)
Net cash provided by (used in) operating activities (179,933)$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2016
19
Exhibit H
Municipal Escrow Total
Court Fund Fiduciary Funds
Assets
Cash and investments 18,034$ 47,910$ 65,944$
Total assets 18,034$ 47,910$ 65,944$
Liabilities
Due to others 18,034$ 47,910$ 65,944$
Total liabilities 18,034$ 47,910$ 65,944$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Assets and Liabilities
Fiduciary Funds
December 31, 2016
20
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
21
(1) Summary of Significant Accounting Policies
The City of Parkville, Missouri (the City) was incorporated on February 6, 1957. The City is a fourth class
city and operates under a Mayor-Board of Aldermen form of government. The City Administrator is the
chief administrative officer of the City. The City provides services to nearly 5,600 residents in many areas,
including law enforcement, sewer services, community enrichment and development, and various social
services.
The accounting and reporting policies of the City conform to generally accepted accounting principles
(GAAP) in the United States of America applicable to local governments. The following represent the
more significant accounting and reporting policies and practices of the City.
A. Financial Reporting Entity
In evaluating how to define the government for financial reporting purposes, management has considered
all potential component units. Component units are separate legal entities which are included in the
primary government’s financial report. The decision to include a potential component unit in the reporting
entity was made by applying the criteria set forth in GAAP. The basic, but not only, criterion for including a
potential component unit within the reporting entity is the City’s financial accountability for the potential
component unit. An entity is considered a component unit if City officials appoint a voting majority of the
component unit’s governing body and the City is able to impose its will upon the component unit.
Additionally, if the entity provides specific financial benefits to or imposes specific financial burdens on the
City, it may be considered a component unit.
This report includes the financial statements of the City (the primary government) and its blended
component unit, the City of Parkville, Missouri Tax Increment Financing (TIF) Commission (the
Commission). The Commission is governed by a board of which six members are appointed by the Mayor
with the consent of the Board of Alderman, two members appointed by the school board whose district is
in the boundary of the redevelopment area, and one member appointed by the affected taxing district.
Although it is legally separate from the City, the Commission is reported as if it were part of the primary
government because its sole function is to use TIF as a method to finance economic development
through payments in lieu of taxes (PILOTS) and economic activity taxes (EATS). The Commission does
not issue separate financial statements.
B. Basis of Presentation
The City’s basic financial statements include both government-wide (reporting the City as a whole) and
fund financial statements (reporting the City’s major funds).
Government-wide financial statements
The statement of net position and the statement of activities display information about the City, the
primary government, as a whole. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes, intergovernmental
revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part
by fees charged to external parties. Expenses are specifically associated with a service, program, or
department and are therefore clearly identifiable to a particular function. Program revenues include
charges paid by the recipients of the goods or services offered by the programs and grants and
contributions that are restricted to meeting the operational or capital requirements of a particular program.
Revenues that are not classified as program revenues are presented as general revenues. The
comparison of program revenues and expenses identifies the extent to which each program is self-
financing or draws from the general revenues of the City.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
22
Fund financial statements
Fund financial statements report detailed information about the City. The focus of governmental and
proprietary fund financial statements is on major funds rather than reporting funds by type. Each major
fund is presented in a separate column. Non-major funds are aggregated and presented in a single
column.
GOVERNMENTAL FUNDS
Governmental Funds are those through which most governmental functions of the City are financed. The
acquisition, use, and balances of the City’s expendable financial resources and the related liabilities
(other than those in Proprietary Funds) are accounted for through Governmental Funds. The
measurement focus is upon determination of financial position and changes in financial position, rather
than upon net income determination.
The following are the City’s major governmental funds:
General Fund – the general fund of the City accounts for all financial transactions not accounted for in
other funds. For financial reporting purposes, the City’s Emergency Reserve Fund’s activities are included
in the General Fund.
Transportation Fund – This fund is used to account for revenues restricted for transportation purposes
including the half-percent transportation sales taxes collected and a county tax distribution for capital
improvements and the expenditures for the related items.
Debt Service Fund – This fund accounts for the accumulation of resources for, and the payment of,
principal and interest on long-term obligations of the City.
The City reports the following fund types of nonmajor funds:
Special Revenue Funds - These funds account for specific revenue sources that are restricted for
specified purposes.
Permanent Fund – This fund reports resources that are legally restricted to the extent that only earnings,
not principal, may be used for purposes that support City programs.
PROPRIETARY FUND
Proprietary Funds are used to account for the City’s ongoing activities which are similar to those found in
the private sector. The measurement focus is upon determination of net income, financial position, and
changes in financial position.
The following is the City’s major proprietary fund:
The Sewer Service Fund – This fund accounts for the provision of waste water and sewer services to the
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.
FIDUCIARY FUNDS
The City maintains two fiduciary funds, the Municipal Court, which accounts for court bonds paid by
defendants and the Escrow Fund which accounts for funds held in escrow for future special assessments.
Since by definition these assets are being held for the benefit of a third party and cannot be used to
support activities or obligations of the City, these funds are not incorporated into the government-wide
statements.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
23
C. Basis of Accounting
Government-wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned or when all eligibility
requirements have been satisfied and expenses are recorded at the time liabilities are incurred,
regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives
(or receives) value without directly receiving (or giving) equal value in exchange, include property taxes,
grants, sales tax, and donations. Revenue from grants and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. This is a similar approach to that used in the
preparation of the proprietary fund financial statements but differs from the manner in which governmental
fund financial statements are prepared. Therefore, the governmental fund financial statements include a
reconciliation with brief explanations to better identify the relationship between the government-wide
statements and the statements for governmental funds.
Governmental Fund Financial Statements
All governmental funds are accounted for using the modified accrual basis of accounting and the current
financial resources measurement focus. Under this basis, revenues are recognized in the accounting
period in which they become measurable and available. Expenditures are recognized in the accounting
period in which the fund liability is incurred, if measurable.
Revenue Recognition
In applying the susceptible to accrual concept under the modified accrual basis, certain revenue sources
are deemed both measurable and available (collectible within the current year or within 60 days after
year-end to pay obligations of the current period). This includes property taxes, investment earnings and
state-levied locally shared taxes (including motor vehicle fees). The City records property tax receivables
at the time the lien attaches to the property. Reimbursements due for federally funded projects are
accrued as revenue at the time the expenditures are made, or when received in advance, deferred until
expenditures are made.
Other revenues, including licenses and permits, certain charges for services, and miscellaneous
revenues, are recorded as revenue when received in cash because they are generally not measurable
until actually received.
Expenditure Recognition
The measurement focus of governmental fund accounting is on decreases in net financial resources
(expenditures) rather than expenses. Most expenditures are measurable and are recorded when the
related fund liability is incurred. However, principal and interest on general long-term debt, which have not
matured are recognized when due. Allocations of cost, such as depreciation and amortization, are not
recognized in the governmental funds.
Proprietary Fund Financial Statements
The economic resources measurement focus and the accrual basis of accounting are utilized by the
proprietary funds. Under this basis of accounting, revenues are recognized when earned and expenses
are recorded when liabilities are incurred. All assets and liabilities (whether current or noncurrent)
associated with a proprietary fund’s activities are included on its statement of net position and statement
of activities. Operating revenues and expenses for proprietary funds are those that result from providing
services and producing and delivering goods and/or services. All other revenues and expenses are
considered nonoperating.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
24
D. Cash and Investments
Missouri State Statutes authorize the City, with certain restrictions, to deposit funds in open accounts,
time deposits, investment pools and certificates of deposit. Statutes also require that collateral pledged
must have a fair value equal to 100% of the funds on deposit, less insured amounts. Collateral securities
must be held by the City or an independent third party and must be of the kind prescribed by State
Statutes and approved by the State.
The City maintains and controls a cash pool in which a majority of the City’s funds share. Each fund’s
portion of the pool is displayed on their respective balance sheet or statement of net position as “cash
and investments”. The City’s cash and investments are primarily considered to be cash on hand,
amounts in demand deposits, and certificates of deposits. Interest earned on demand deposits is
allocated to the various funds on the basis of average month-end balances.
For purposes of the statement of cash flows, short-term investments and certificates of deposit with a
maturity date within three months of the date acquired by the City, if any, are considered cash
equivalents.
E. Accounts Receivable
Accounts receivable result primarily from miscellaneous services provided to citizens accounted for in the
Governmental Funds, and from water, sewer, and sanitation services accounted for in the their respective
Proprietary Fund net of an allowance for doubtful accounts.
F. Special Assessments Receivable
Special assessments receivable reflects the property taxes collectable by the City for the purpose of
repaying certain Special Assessment debt held by the City. The amount collectable by the City is reduced
each year as the taxes are levied against the property and, subsequently, collected by the City.
G. Prepaid Items
Certain payments reflect costs applicable to future accounting periods and are recorded as prepaid items.
H. Capital Assets
Capital assets, which include property, equipment, and infrastructure assets (i.e. roads, streets lights,
storm sewers, etc.) are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets are charged to expenditures as purchased in the
governmental fund statements, and capitalized in the proprietary fund statements. Capital assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets are
recorded at estimated fair value as of the date of the donation.
As the City is a Phase III government under Governmental Accounting Standards Board (GASB)
Statement No. 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 position include only infrastructure capital assets acquired subsequent to December 31,
2003.
Capital assets are defined by the City as assets with an initial, individual cost of $2,500 or more and an
estimated useful life of greater than one year. Additions or improvements and other capital outlays that
significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are
capitalized. Other costs incurred for repairs and maintenance is expensed as incurred. Fully depreciated
capital assets are included in their respective accounts until their disposal.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
25
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net Position and is provided on the straight-line
basis over the following estimated useful lives:
Governmental infrastructure 20 – 40 years
Buildings 20 – 40 years
Machinery and equipment 5 – 10 years
Sewer plant and collection systems 20 – 50 years
I. Compensated Absences
Under terms of the City’s personnel policy, City employees are granted vacation in varying amounts.
Vacation days are required to be taken within the current or following calendar year in which earned. In
the event of retirement or termination, an employee is paid for unused vacation days.
Vested or accumulation vacation is accounted for as follows:
Governmental Funds - The accumulated liabilities for employee vacation is recorded in the governmental
activities column of the government-wide financial statements.
J. Deferred Outflows/inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized
as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for
reporting in this category. The first item is the deferred charge on refunding reported in the government-
wide statement of net position. A deferred charge on refunding results from the difference in the carrying
value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter
of the life of the refunding or refunded debt. The second item results from actuarial assumption changes,
the difference between actual and projected earnings in calculating the net pension asset, and pension
contributions made by the City subsequent to the pension valuation date. The contribution amount will be
applied during the next fiscal year while the changes in actual versus projected amounts will be amortized
over five to seven years.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents
an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow
of resources (revenue) until that time. The City has two types of items, which arises under the accrual and
modified accrual basis of accounting, which qualify for reporting in this category. The first one relates to
the change in actual and projected experience in calculating the pension liability. The second item,
unavailable revenue, is reported in both the statement of net position and in the governmental funds
balance sheet for receipts of tax payments related to fiscal year 2017 property taxes. Special assessment
revenues related to debt are only reported in the governmental funds balance sheet. The governmental
funds report unavailable revenues related to taxes, fees, and grants. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available.
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the
Missouri Local Government Employees Retirement System (LAGERS) and additions to/deductions from
LAGERS fiduciary net position have been determined on the same basis as they are reported by
LAGERS. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
26
K. Interfund Activity
Loans – amounts provided with a requirement for repayment. Interfund loans are reported as interfund
receivables (i.e., due from other funds) in lender funds and interfund payables (i.e. due to other funds) in
borrower funds.
Services provided and used – sales and purchases of goods and services between funds for a price
approximating their fair value. Interfund services provided and used are reported as revenues in funds
providing the good or service and expenditures or expenses in the fund purchasing the good or service.
Unpaid amounts are reported as interfund receivables and payables in the fund balance sheets or
statement of net position.
The General fund provides administrative and other support services for the Sewer fund. Amounts
charged to the Sewer fund for such services were $103,530 for the year ended December 31, 2016.
Reimbursements – repayments from the funds responsible for particular expenditures or expenses to
the funds that initially paid for them. Reimbursements are reported as expenditures in the reimbursing
fund and as a reduction of expenditures in the reimbursed fund.
Transfers – flows of assets (such as cash or goods) without equivalent flows of assets in return and
without a requirement for repayment. In governmental funds, transfers are reported as other financing
uses in the funds making transfers and as other financing sources in the funds receiving transfers.
L. Fund Balances
In the fund financial statements, governmental funds report the following fund balance classifications:
Non-Spendable – This consists of amounts that cannot be spent because they are either not in spendable
form or legally or contractually required to be maintained intact.
Restricted – This consists of amounts where constraints are placed on the use of those resources which
are either externally imposed by creditors, grantors, contributors, laws or regulations of other
governments, or imposed by law through constitutional provisions or enabling legislation.
Committed – This consists of amounts which can only be used for specific purposes determined by a
formal action of passing an ordinance or resolution by the Board of Aldermen, the City’s highest level of
decision-making authority. Any changes or removal of specific purpose requires the same action by the
Board of Aldermen.
Assigned – This consists of amounts which are constrained by City management’s intent to be used for a
specific purpose but do not met the criteria to be classified as committed. In accordance with the
approved City policy only the Board of Alderman has the authority to assign amounts for a specific
purpose in this category.
Unassigned – This consists of the residual fund balance that does not meet the requirements for the non-
spendable, restricted, committed, or assigned classifications. A positive unassigned fund balance is only
possible in the general fund.
The City has a fund balance policy that provides guidance for programs with multiple revenue sources.
The policy is to use restricted resources first when an expenditure is incurred for purposes for which both
restricted and unrestricted fund balance is available. For purposes of fund balance classification
expenditures are to be spent from restricted fund balance first, followed in order by committed fund
balance, assigned fund balance and lastly unassigned fund balance.
Per policy, the general fund balance should be no less than 5% of general fund appropriations for the
succeeding fiscal year in order to provide adequate cash flow and emergency cash funding. The City will
endeavor to grow a general fund balance of 15% of general fund appropriations for the succeeding fiscal
year. Amounts over 15% may be moved into the emergency reserve fund.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
27
M. Net Position Classifications
In the government-wide statements, equity is shown as net position and classified into three components:
(1) Net investment in capital assets – consisting of capital assets including restricted capital assets,
net of accumulated depreciation and reduced by the outstanding balances of any bonds,
mortgage notes, or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
(2) Restricted net position – consisting of net position with constraints placed on their use either by
(1) external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation. The City first
utilizes restricted resources to finance qualifying activities.
(3) Unrestricted net position – All other net position that do not meet the definition of “restricted” or
“net investment in capital assets.”
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or
grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net
position and unrestricted net position in the government-wide and proprietary fund financial statements, a
flow assumption must be made about the order in which the resources are considered to be applied. It is
the government’s policy to consider restricted net position to have been depleted before unrestricted net
position is applied.
N. Expenditures in Excess of Budget Appropriations
In violation of the budget ordinance, actual expenditures exceeded budgeted appropriations as follows:
O. Use of Estimates
The preparation of the basic 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 basic financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Fund
Expenditures in
Excess of Budget
Appropriations
Parks Donations 1,384$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
28
(2) Cash and Investments
A reconciliation of cash and investments as shown on the government-wide statement of net position
and statement of fiduciary net position is as follows:
Cash on hand 331$
Demand deposits 4,809,320
Certificates of deposits 342,573
US treasuries and agency securities 55,192
Restricted cash equivalents held in trust 847,317
6,054,733$
Government-wide Fiduciary funds
statement statement of
of net position assets and liabilities Total
Cash and investments 4,204,736$ 65,944$ 4,270,680$
Restricted cash and investments 1,784,053 - 1,784,053
5,988,789$ 65,944$ 6,054,733$
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of failure of a depository financial
institution, the City will not be able to recover deposits or will not be able to recover collateral securities
that are in the possession of an outside party. The custodial credit risk for investments is that, in the event
of the failure of a counterparty to a transaction, the City will not be able to recover the value of investment
or collateral securities that are in the possession of an outside party. The City’s policy is to collateralize
deposits with securities held by the financial institution’s agent and in the City’s name.
As of December 31, 2016, the City’s deposits were insured with Federal depository insurance, with the
remaining uninsured balance collateralized by securities held in the City’s name by their financial
institution’s agent. Accordingly, management has determined that none of the City’s deposits were
exposed to custodial credit risk as of December 31, 2016.
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value
to changes in market interest rates. The City structures the investment portfolio so that securities mature
to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the
open market prior to maturity and by investing operating funds primarily in shorter-term securities. The
City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by general
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted in active markets for identical assets; Level 2 inputs are
significant other observable inputs such as third party pricing services for identical assets; Level 3 inputs
are significant unobservable inputs.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
29
The City has the following recurring fair value measurements as of December 31, 2016:
All of the City’s investments are classified as Level 1 of the fair value hierarchy using prices quoted in
active markets for those securities.
(3) Tax Revenues and Taxes Receivable
The City’s property taxes are levied and recorded each November 1 on the assessed value as of the prior
January 1 for all property located in the City, and are delinquent on January 1 (the lien date) following the
levy date. Assessed values are established by county assessors, subject to review by the county’s Board
of Equalization. The assessed value of local property at January 1, 2015, was $200,859,693.
The City is permitted by the Missouri State Constitution to levy (without a vote of two-thirds of the voting
electorate) 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. The City’s property tax levies per $100 of
assessed valuation for the year in which the revenues were earned were as follows:
Fund Levy
General Fund $ 0.4763
General Revenue-
Temporary 0.1751
$ 0.6514
Tax revenues for the year consisted of the following:
Property Sales Franchise Other
Taxes Taxes Taxes Taxes Total
Major governenmental funds:
General $ 1,159,454 $ 968,137 $ 859,041 $ - 2,986,632$
Transporation Sales Tax - 454,601 - - 454,601
Debt Service 338,407 - - - 338,407
Nonmajor funds - 273,228 - 1,397 274,625
$ 1,497,861 $ 1,695,966 $ 859,041 $ 1,397 $ 4,054,265
Taxes receivable represent property, sales, gross receipts, and franchise taxes, including interest and
penalties, reduced by an appropriate allowance for uncollectible taxes. Taxes receivable consisted of the
following at December 31, 2016:
Sales Franchise
Taxes Taxes Total
Major governenmental funds:
General $ 144,783 $ 107,020 251,803$
Transporation Sales Tax 70,224 - 70,224
$ 215,007 $ 107,020 $ 322,027
Level 1
Investment
Federal Home Loan Bank 55,192$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
30
(4) Intergovernmental Revenue/Receivables
Intergovernmental revenue during the year consisted of the following:
Other
General Transportation Nonmajor
Fund Sales Tax Funds Total
Grants - Federal, State and Local $ 30,915 $ - $ 181,099 $ 212,014
State: -
Motor vehicle sales tax 47,409 - - 47,409
Motor vehicle fuel tax - 149,253 - 149,253
Motor vehicle license
and title transfer fees 23,749 - - 23,749
Local:
Special road district - 134,676 - 134,676
County transportation - 239,661 - 239,661
Economic activity taxes - - 177,307 177,307
Total Intergovernmental Revenue $102,073 $ 523,590 $ 358,406 $ 984,069
Amounts due from other governments at December 31, 2016, were as follows:
General Transporation
Fund Sales Tax Total
Motor vehicle sales tax $ 3,705 $ - 3,705$
Motor vehicle fuel tax - 12,231 12,231
Motor vehicle license
and title transfer fees 1,955 - 1,955
Total due from other governments $ 5,660 $ 12,231 $ 17,891
(5) Interfund Activity
Transfers between funds for the year ended December 31, 2016 were as follows:
Transporation
General Sales Tax Total
Transfers In:
Governmental activities:
General Fund -$ 190,000$ 190,000$
Debt Service Fund 144,431 - 144,431
Other Governmental Funds 15,910 - 15,910
Total 160,341$ 190,000$ 350,341$
Transfers Out:
Transfers are used to (1) 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) use unrestricted revenues in the General
Fund to meet certain special assessment debt service requirements as debt service payments become
due, and (3) use unrestricted revenues collected in the general fund to finance various programs or debt
service accounted for in other funds in accordance with budgetary authorizations. Any transfers within the
governmental funds or within the proprietary funds have been eliminated in the government-wide
statement of activities.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
31
(6) Capital Assets
A summary of the changes in capital assets for the year is as follows:
December 31, December 31,
2015 Additions Retirements 2016
Governmental activities:
Capital assets, not being depreciated
Land 869,880$ -$ -$ 869,880$
Total capital assets, not being depreciated 869,880 - - 869,880
Capital assets, being depreciated
Buildings and improvements 4,394,446 127,960 - 4,522,406
Equipment and vehicles 2,087,156 183,012 47,908 2,222,260
Infrastructure 6,346,540 633,156 - 6,979,696
Total capital assets being depreciated 12,828,142 944,128 47,908 13,724,362
Less accumulated depreciation for:
Buildings and improvements 1,199,437 109,143 - 1,308,580
Equipment and vehicles 1,634,916 173,849 47,908 1,760,857
Infrastructure 1,212,905 170,592 - 1,383,497
Total accumulated depreciation 4,047,258 453,584 47,908 4,452,934
Total capital assets being depreciated, net 8,780,884 9,271,428
Governmental activates capital assets, net 9,650,764$ 10,141,308$
December 31, December 31,
2015 Additions Retirements 2016
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 5,253,934 123,000 - 5,376,934
Equipment and vehicles 285,794 18,441 - 304,235
Infrastructure 2,384,899 - - 2,384,899
Total capital assets being depreciated 7,924,627 141,441 - 8,066,068
Less accumulated depreciation for:
Buildings and improvements 3,238,883 176,026 - 3,414,909
Equipment and vehicles 237,339 17,868 - 255,207
Infrastructure 937,162 49,355 - 986,517
Total accumulated depreciation 4,413,384 243,249 - 4,656,633
Total capital assets being depreciated, net 3,511,243 3,409,435
Business-type activates capital assets, net 3,571,218$ 3,469,410$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
32
Depreciation expense was charged to functions and programs of the primary government as follows:
(7) Long Term Debt
A summary of the changes in long term debt is as follows:
Beginning Adjustments/Adjustments/ End of Due Within
Governmental Activities: of Year Additions Retirements Year One Year
Limited general obligation bonds:
Series 2010 - River Park 1,480,000$ -$ 280,000$ 1,200,000$ 285,000$
Series 2014A - Brush Creek 5,375,000 - - 5,375,000 210,000
Series 2014B - Brink Meyer 3,675,000 - - 3,675,000 140,000
Premium on issuance 463,523 - 25,097 438,426 25,097
10,993,523 - 305,097 10,688,426 660,097
Certificates of participation 3,383,722 - - 3,383,722 297,114
* Compensated absences 40,539 2,365 - 42,904 42,904
Total Governmental Activities 14,417,784 2,365 305,097 14,115,052 1,000,115
Business-type Activates:
Revenue bonds 1,455,000$ -$ 145,000$ 1,310,000$ 150,000$
Premium on issuance 63,351 - 7,919 55,432 7,919
Total Business-type Activates 1,518,351 - 152,919 1,365,432 157,919
Total Primary Government 15,936,135$ 2,365$ 458,016$ 15,480,484$ 1,158,034$
* Primarily liquidated by the General fund in prior years.
A. Limited General Obligation Bonds
The City has issues special limited general obligation bonds to provide funds for the acquisition and
construction of certain neighborhood improvement projects. Financing is provided by special
assessments levied within the respective Districts. Special general obligation bonds are direct obligations
and pledge the full faith and credit of the City. The City’s limited general obligation bonds as of December
31, 2016:
Governmental activities:
General government $ 121,917
Public safety 56,820
Public works 236,949
Parks and recreation 31,352
Economic development 6,546
Total depreciation expense for
governmental activities $ 453,584
Business-type activities:
Sewer $ 243,249
Total depreciation expense for
business-type activities $ 243,249
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
33
Series 2010 - Neighborhood Improvement District - Limited General
Obligation Refunding Bonds (River Park Project); due in annual
installments through March 1, 2020; interest at 1.75% to 3.25% 1,200,000$
Series 2014A - Neighborhood Improvement District - Limited General
Obligation Bonds (Brush Creek Drainage Area Neighborhood
Improvement Project); due in annual installments through March 1, 2034;
interest at 3.0% to 4.0% 5,375,000
Series 2014B - Neighborhood Improvement District - Limited General
Obligation Bonds (Brink Meyer Road Neighborhood Improvement
Project); due in annual installments through March 1, 2034; interest at
3.0% to 3.25% 3,675,000
Total limited general obligation bonds 10,250,000$
In 2015, the City began the required special assessment levy on the property owners within the Brush
Creek Drainage Area Neighborhood Improvement (Brush Creek NID) and the Brink Meyer Road
Neighborhood Improvement District (Brink Meyer NID).
The City has taken legal actions against certain properties located within the Brush Creek and Brink
Meyer NIDs related to delinquent special assessments on those properties. As a result, the City has
acquired certain properties through conveyance and the judicial foreclosure process. City management
has estimated the acquisition value of the acquired properties and has recorded these amounts as “Land
held for redevelopment”. These properties are no longer subject to Brush Creek NID and/or the Brink
Meyer Road NID special assessments.
A summary of the changes in land held for redevelopment is as follows:
December 31, December 31,
2015 Additions Retirements 2016
Land held for redevelopment 1,600,000$ 500,000$ -$ 2,100,000$
The Brush Creek and Brink Meyer NID’s originally scheduled annual special assessments necessary to
meet the Series 2014A and 2014B debt service requirements was approximately $670,000. Currently, the
anticipated annual collections of special assessments is scheduled to be approximately $255,000.
The City is actively seeking a development partnership to offset the debt exposure through a combination
of property sale proceeds and new economic activity.
B. Certificates of Participation
During fiscal year 2015, the City issued $3,383,722 Refunding Certificates of Participation to current
refund the 2006 Certificates of Participation issued for the purpose of constructing City Hall, public
parking lot and certain other capital improvements within the City. A temporary levy on property was
approved to make a portion of the debt service payments. Principal and interest payments are due semi-
annually beginning on September 1, 2016 through March 1, 2027 with principal payments ranging from
$139,867 to $444,872, with an interest rate of 2.24%.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
34
C. Revenue Bonds
The City issued Sewerage System Revenue Bonds (State Revolving Loan Fund (SRF)) Series 2004A in
the original amount of $2,750,000. 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 bonds are due in annual installments of $30,000 to $170,000 through January 1, 2015 with
interest ranging from 3.0% to 5.25%. The outstanding balance at December 31, 2016, is $1,310,000.
Future Debt Service Requirements
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2017 285,000$ 33,275$ 210,000$ 183,938$ 140,000$ 145,888$
2018 295,000 24,575 215,000 177,563 145,000 141,613
2019 305,000 15,193 220,000 171,038 150,000 137,188
2020 315,000 5,119 230,000 164,288 155,000 132,613
2021 235,000 157,313 160,000 127,888
2022-2026 - - 1,285,000 673,431 855,000 563,531
2027-2031 - - 1,525,000 435,250 1,035,000 383,300
2032-2034 - - 1,455,000 104,300 1,035,000 93,375
1,200,000$ 78,162$ 5,375,000$ 2,067,119$ 3,675,000$ 1,725,394$
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2017 297,114$ 72,468$ 932,114$ 435,568$ 150,000$ 69,313$
2018 335,155 65,386 990,155 409,136 150,000 61,938
2019 354,132 57,666 1,029,132 381,084 155,000 54,438
2020 361,800 49,648 1,061,800 351,667 160,000 46,619
2021 388,809 41,241 783,809 326,441 160,000 38,350
2022-2026 1,506,846 81,206 3,646,846 1,318,169 535,000 70,675
2027-2031 139,866 1,567 2,699,866 820,117 - -
2032-2034 - - 2,490,000 197,675 - -
3,383,722$ 369,182$ 13,633,722$ 4,239,857$ 1,310,000$ 341,331$
Limited General Obligation Refunding
Bonds - Series 2010 (River Park)
Limited General Obligation Bonds -
Series 2014A (Brush Creek)
Limited General Obligation Bonds -
Series 2014B (Brink Meyer)
Total
Certificates of Participation
Series 2015
Governmental Activities
Governmental Activities Business-type Activities
Sewerage System Revenue Bonds
Series 2004
(8) Cooperative Agreement – Sewer Services
The City has entered into agreements with the City of Kansas City, Missouri and the Platte County
Regional Sewer District to provide certain sewer services for the City. For the year ended December 31,
2016, amounts recorded under these agreements were $19,647 (Kansas City, Missouri) and $3,961
(Platte County Regional Sewer District).
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
35
(9) Employees Retirement System
A. Plan Description
The City’s defined benefit pension plan provides certain retirement, disability and death benefits to plan
members and beneficiaries. The City participates in the Missouri Local Government Employees
Retirement System (LAGERS). LAGERS is an agent multiple-employer, statewide public employee
pension plan established in 1967 and administered in accordance with RSMo. 70.600-70.755. As such, it
is LAGERS responsibility to administer the law in accordance with the expressed intent of the General
Assembly. The plan is qualified under the Internal Revenue Code Section 401(a) and is tax exempt. The
responsibility for the operations and administration of LAGERS is vested in the LAGERS Board of
Trustees consisting of seven persons. LAGERS’ issues a publicly available financial report that includes
financial statements and required supplementary information. This report may be obtained by accessing
the LAGERS website at www.molagers.org.
B. Benefits Provided
LAGERS provides retirement, death and disability benefits. Benefit provisions are adopted by the
governing body of the employer, within the options available in the state statutes governing LAGERS. All
benefits vest after 5 years of credited service. Employees who retire on or after age 60 (55 for police) with
5 or more years of service are entitled to an allowance for life based upon the benefit program information
provided below. Employees may retire with an early retirement benefit with a minimum of 5 years of
credited service and after attaining age 55 (50 for police) and receive a reduced allowance.
2016 Valuation
Benefit Multiplier: 1.25% for life
Final Average Salary: 3 Years
Member Contributions: 4%
Benefit terms provide for annual post retirement adjustments to each member’s retirement allowance
subsequent to the member’s retirement date. The annual adjustment is based on the increase in the
Consumer Price Index and is limited to 4% per year.
C. Employees Covered by Benefit Terms
The following employees were covered by the benefit terms:
General Police Total
Inactive employees or beneficiaries currently
receiving benfits 1 2 3
Inactive employees entitled to but not yet
receiving benefits 6 5 11
Active employees 17 13 30
24 20 44
D. Contributions
The employer is required to contribute amounts at least equal to the actuarially determined rate, as
established by LAGERS. The actuarially determined rate is the estimated amount necessary to finance
the cost of benefits earned by employees during the year, with an additional amount to finance an
unfunded accrued liability. Full-time employees of the employer contribute 4% to the pension plan.
Employer contribution rates are 5.6% (General) and 6.5% (Police) of annual covered payroll.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
36
E. Net Pension Liability
The City’s net pension liability was measured as of June 30, 2016, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of February 29, 2016.
F. Actuarial Assumptions
The total pension liability in the February 29, 2016 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.25% wage inflation; 2.5% price inflation
Salary Increase 3.25% to 6.55% including wage inflation
Investment rate of return 7.25%, net of investment expenses
The healthy retiree mortality tables, for post-retirement mortality, were the RP-2014 Healthy Annuitant
mortality tables for males and females. The disabled retiree mortality tables, for post-retirement mortality,
were the RP-2014 disabled mortality table for males and females. The pre-retirement mortality tables
used were the RP-2014 employees mortality table for males and females.
Both the post-retirement and pre-retirement tables were adjusted for mortality improvement back to the
observation period base year of 2006.The base year for males was then established to be 2017. Mortality
rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale
to the above described tables.
The actuarial assumptions used in the February 29, 2016 valuation were based on the results of an
actuarial experience study for the period March 1, 2010 through February 28, 2015.
The long-term expected rate of return on pension plan investments was determined using a model
method in which the best-estimate ranges of expected future real rates of return (expected returns, net of
investment expenses and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. The target allocation
and best estimates of arithmetic real rates of return for each major asset class are summarized in the
following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Equity 43.00% 5.29%
Fixed Income 26.00% 2.23%
Real Assets 21.00% 3.31%
Strategic Assets 10.00% 5.73%
G. Discount Rate
The discount rate used to measure the total pension liability is 7.25%. The projection of cash flows used
to determine the discount rate assumes that employer and employee contributions will be made at the
rates agreed upon for employees and the actuarially determined rates for employers. Based on these
assumptions, the pension plan’s fiduciary net position was projected to be depleted in 2086 for the
general division and, as a result, the 20-Bond Go Index rate was used in the determination of the single
discount rate. The long-term expected rate of return of 7.25% was applied to period before 2086 and the
20-Bond Go Index rate of 2.85% was applied to periods on and after 2086, resulting in a single discount
rate of 7.16%. The pension plan’s fiduciary net position for the police division was projected to be
available to pay all projected future benefit payments of current active and inactive employees for those
divisions. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payment to determine the total pension liability for the police division.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
37
H. Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
1,250,675$ 1,001,182$ 249,493$
116,946 - 116,946
93,722 - 93,722
Change in benefit terms - - -
(66,469) - (66,469)
Change in assumptions 79,853 - 79,853
- 93,771 (93,771)
- 61,441 (61,441)
- 63 (63)
(31,360) (31,360) -
- (3,451) 3,451
- (3,952) 3,952
Net changes 192,692 116,512 76,180
1,443,367$ 1,117,694$ 325,673$
Difference between expected and actual
Increase (Decrease)
Balances at beginning of year
Changes for the year:
Service Cost
Interest
Balances at end of year
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
Administrative expense
Other changes (net transfer)
I. Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the Net Pension Liability of the employer, calculated using the discount rate of
7.16 for general and 7.25% for police, as well as what the employer’s Net Pension Liability would be
using a discount rate that is one percentage point lower (6.16% and 6.25%) or one percentage point
higher (8.16% and 8.25%) than the current rate.
1% Decrease
Current Single
Discount Rate
Assumption 1% Increase
6.16% and 6.25% 7.16% and 7.25% 8.16% and 8.25%
Total Pension Liability (TPL) 1,707,794$ 1,443,367$ 1,230,675$
Plan Fiduciary Net Position (1,117,694) (1,117,694) (1,117,694)
Net Pension Liability 590,100$ 325,673$ 112,981$
J. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended December 31, 2016, the City recognized LAGERS pension expense of $101,134
($53,282 (General) and $47,852 (Police)). The City reported deferred outflows related to LAGERS
pension from the following sources:
General Police Total
Deferred Outflows of Resources:
Assumption changes 43,078$ 26,621$ 69,699$
Excess investment returns 49,727 40,520 90,247
Contributions subsequent to the
measurement date* 26,000 21,365 47,365
Total 118,805$ 88,506$ 207,311$
Deferred Inflows of Resources:
Difference in experience 91,284$ 3,528$ 94,812$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
38
*The amount reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will be recognized as a reduction in the Net Pension Liability for the year ending
December 31, 2017.
Net amounts reported as deferred outflows and deferred inflows of resources related to LAGERS pension
will be recognized in pension expense as follows:
Year ending December 31: General Police Total
2017 6,625$ 14,612$ 21,237$
2018 6,625 14,612 21,237
2019 6,625 14,612 21,237
2020 1,288 10,312 11,600
2021 (7,141) 3,407 (3,734)
Thereafter (12,501) 6,058 (6,443)
Total 1,521$ 63,613$ 65,134$
K. Payable to the Pension Plan
At December 31, 2016, the City paid all outstanding contributions to the LAGERS pension plan.
(10) Commitments and Contingencies
A. Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
The City is a member of the Midwest Public Risk (MPR), formerly Mid-America Regional Council
Insurance Trust, a not-for-profit corporation consisting of local governments and political subdivisions.
MPR was formed as a public entity risk retention pool to cover health and dental, workers’ compensation,
and property and casualty claims for its members. MPR has been established as assessable pools and
accounting records are maintained for each line of coverage on a policy-year basis. The City pays annual
premiums to MPR for all coverage. The agreement with MPR provides that MPR will be self-sustaining
through member premiums. MPR has the authority to assess members for any deficiencies of revenues
under expenses for any single plan year. Likewise, MPR has the authority to declare refunds to members
for the excess of revenues over expenses relating to any single plan year. The City continues to carry
commercial insurance for employee life insurance and short-term disability. The amount of settlements
has not exceeded the City’s insurance coverage in any of the past three fiscal years.
B. Investments-Trust Fund
The City was the recipient of funds from a resident’s estate during the calendar year 2002. The funds
were previously held by a trustee for the benefit of the City. In 2011, the City took over management of
the fund and by Resolution No. 12-01-13, the Board of Aldermen enacted a policy restricting the use of
the fund to follow the intentions of the original donor of the fund. The nature of the fund is that the
principal of the contributions is to remain intact. One-half of the interest earnings are to be added to the
principal and the remaining one-half of annual earnings may be used to fund city capital projects. At
December 31, 2016, the fund had $10,481 net appreciation on assets available for expenditure which is
reported as restricted fund balance and $563,961 in principal which is reported as nonspendable fund
balance. Both of these amounts are reported as restricted net position on the government-wide statement
of net position. The State of Missouri requires that recipients of endowment gifts maintain the original
principal intact at the original donation value.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2016
39
C. Federal and State Grants
The City has received financial assistance from various federal, state, and local agencies in the form of
grants and entitlements. These programs are subject to audit by agents of the granting authority.
Management does not believe that liabilities for reimbursements, if any, will have a materially adverse
effect upon the financial condition of the City.
D. Litigation
The City is involved in legal proceedings arising from the ordinary course of City activities. While these
proceedings may have future financial effect, management believes that their ultimate outcome will not be
material to the basic financial statements.
(11) Subsequent Events
The City evaluated subsequent events through June 13, 2017, the date the financial statements were
available to be issued. Except for the following, no other subsequent events were identified that required
adjustment to or disclosure in the financial statements.
On March 15, 2017, the City entered into a $2,353,700 lease purchase agreement (lease agreement) with
BankLiberty to obtain funds to pay the costs of acquiring and installing improvements to a portion of
Route 9 within the City and for capital improvements to certain roads within the City. Annual lease
agreement payments will range from $23,768 to $1,355,900 beginning September 1, 2017 through March
1, 2022, including interest at 2.19%.
CITY OF PARKVILLE, MISSOURI
Notes to Required Supplementary Information
December 31, 2016
40
(1) Budgetary Data
The Board of Alderman adopted annual operating budgets for all funds except for the Court Recoupment
Fees, Police Training Fees LET, Police Shop, TIF Development and Market Place Development funds.
The City’s budget is adopted using Generally Accepted Accounting Principles on the Modified Accrual
Basis of Accounting. Revisions to the budget can be made only by the Board of Alderman. There were
one budget amendment during the year ended December 31, 2016. Legally, expenditures may not
exceed the total amount of expenditures budgeted, as revised, in each fund. All annual appropriations
lapse at year end if not encumbered.
The City follows these procedures in establishing the budgetary date reflected in the financial statements,
beginning in the prior year.
1. In early August, budget worksheets are issued to each department.
2. In early September, budget requests are submitted by departments to the City Administrator.
3. Budget meetings are held between the City Administrator and each department beginning in late
September to early October.
4. In late October, a proposed budget is presented to the Board of Aldermen.
5. In early December, the Board of Alderman adopt the budget.
Schedule 1
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 2,948,687$ 2,948,687$ 2,971,268$ 22,581$
Intergovernmental 71,000 71,000 102,073 31,073
Charges for services 34,200 34,200 41,411 7,211
Fines and forfeitures 250,000 250,000 191,726 (58,274)
Licenses and permits 319,575 319,575 328,239 8,664
Charges for sewer 103,530 103,530 103,530 -
Interest 8,000 8,000 8,149 149
Other 33,244 33,244 97,215 63,971
Total Revenues 3,768,236 3,768,236 3,843,611 75,375
Expenditures:
Current:
General government 1,074,767 1,074,767 1,015,849 58,918
Public safety 1,419,876 1,419,876 1,246,581 173,295
Public works 615,343 615,343 596,184 19,159
Parks and recreation 590,188 590,188 473,540 116,648
Community development 425,393 425,393 357,684 67,709
Total Expenditures 4,125,567 4,125,567 3,689,838 435,729
Excess of Revenues Over
(Under) Expenditures (357,331) (357,331) 153,773 511,104
Other Financing Sources (Uses):
Transfers in 240,000 240,000 190,000 (50,000)
Transfers out (317,500) (317,500) (333,410) (15,910)
Sale of capital assets 8,000 8,000 10,625 2,625
Total Other Financing Sources (Uses) (69,500) (69,500) (132,785) (63,285)
Change in fund balance (426,831)$ (426,831)$ 20,988 447,819$
Fund Balances, Beginning of Year 1,654,343
Fund Balances, End of Year 1,675,331$
Note: GAAP is the budgetary basis used to prepare this schedule
2016
CITY OF PARKVILLE, MISSOURI
Required Supplementary Information
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended December 31, 2016
41
Schedule 2
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 456,000$ 456,000$ 454,601$ (1,399)$
Intergovernmental 466,000 466,000 523,590 57,590
Other 5,325 5,325 17,405 12,080
Total Revenues 927,325 927,325 995,596 68,271
Expenditures:
Capital outlay 874,000 874,000 838,232 35,768
Total Expenditures 874,000 874,000 838,232 35,768
Excess of Revenues Over
(Under) Expenditures 53,325 53,325 157,364 104,039
Other Financing Sources (Uses):
Transfers out (240,000) (240,000) (190,000) 50,000
Sale of capital assets 7,500 7,500 - (7,500)
Total Other Financing Sources (Uses) (232,500) (232,500) (190,000) 42,500
Change in fund balance (179,175)$ (179,175)$ (32,636) 146,539$
Fund Balances, Beginning of Year 320,048
Fund Balances, End of Year 287,412$
Note: GAAP is the budgetary basis used to prepare this schedule
2016
CITY OF PARKVILLE, MISSOURI
Required Supplementary Information
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Transportation Sales Tax Fund
For the Year Ended December 31, 2016
42
Schedule 3
2016 2015
Total Pension Liability
Service costs 116,946$ 104,714$
Interest on total pension liability 93,722 69,352
Changes in benefit terms - 226,297
Difference between expected and
actual experience of the total pension liability (66,469) (47,700)
Changes of assumptions 79,853
Benefit payments and refunds (31,360) (14,002)
Net change in total pension liability 192,692 338,661
Total pension liability - beginning of year 1,250,675 912,014
Total pension liability - end of year (a)1,443,367$ 1,250,675$
Plan Fiduciary Net Position
Contributions - employer 93,771$ 73,690$
Contributions - employee 61,441 60,880
Net investment income 63 17,409
Benefit payments and refunds (31,360) (14,002)
Administrative expenses (3,451) (3,356)
Other (net transfer) (3,952) 38,126
Net change in plan fiduciary net position 116,512 172,747
Plan fiduciary net positon - beginning of year 1,001,182 828,435
Plan fiduciary net positon - end of year (b) $ 1,117,694 $ 1,001,182
Net pension liability (a) - (b) $ 325,673 $ 249,493
Plan net position as a percentage of the
total pension liability 77.44% 80.05%
Covered employee payroll 1,415,099 1,414,512
Net pension liability/(asset) as a
percentage of covered payroll 23.01% 17.64%
GASB 68 requires presentation of ten years. As of December 31, 2016, only two years of information is available.
CITY OF PARKVILLE, MISSOURI
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
For the Year Ended December 31, 2016
Lagers
43
Schedule 4
Actuarially Covered Contribution
Fiscal Determined Contribution in Contribution Employee as
Year Contribution Relation Deficiency Payroll Percentage
2009 $ 24,347 $ 24,347 $ - $ 581,934 4.18%
2010 57,324 57,324 - 1,371,930 4.18%
2011 54,185 54,185 - 1,354,526 4.00%
2012 65,702 65,702 - 1,522,146 4.32%
2013 61,194 61,194 - 1,496,050 4.09%
2014 63,625 63,625 - 1,621,236 3.92%
2015 90,692 90,692 - 1,501,816 6.04%
2016 93,266 93,266 - 1,559,830 5.98%
Lagers
Valuation Date
Notes:
Actuarial cost method Entry Age Normal and Modified Terminal Funding
Amortization method Level percentage of payroll, closed
Remaining amortization period Multiple bases from 14 to 23 years
Asset valuation method 5-year smoothed market; 20% corridor
Inflation assumption 3.25% wage inflation; 2.5% price inflation
Salary increases 3.25% to 6.55% including wage inflation
Investment rate of return 7.25%, net of investment and administrative expenses
Retirement age
Mortality
Other information:
GASB 68 requires presentation of ten years. As of December 31, 2016, only eight years of information is available.
CITY OF PARKVILLE, MISSOURI
Required Supplementary Information
Schedule of Employer Contributions
For the Year Ended December 31, 2016
LAGERS (General and Police)
Both the post-retirement and pre-retirement tables were adjusted for mortality
improvement back to the observation period based year of 2006. The base year for
males was then established to be 2017. Mortality rates for a particular calendar year
are determined by applying the MP-2015 mortality improvement scale to the above
described tables.
New assumptions adopted based on the 5-year experience study for the period March
1, 2010 through February 28, 2015.
Experienced-based table of rates that are specific to the type of eligibility condition
Methods and assumptions used to determine contributions rates:
February 29, 2016
The roll-forward of total pension liability from February 29, 2016 to December 31, 2016
reflects expected service cost and interest reduced by actual benefit payments and
administrative expenses.
The healthy retiree mortality tables, for post retirement mortality, were the RP-2014
Healthy Annuitant mortality table for males and females. The disabled retiree mortality
tables, for post-retirement mortality, were the RP-2014 disabled mortality table for
male and females. The pre-retirment mortality tableas used were the RP-2014
employees mortality table for male and females.
44
Schedule 5
General Reserve
Fund Fund Totals
Assets:
Cash and investments 1,777,432$ 1,458,275$ 3,235,707$
Receivables:
Taxes 251,803 - 251,803
Due from other governments 5,660 - 5,660
Due from other funds - - -
Prepaid, deposits and other assets 79,100 - 79,100
Total Assets 2,115,043$ 1,458,275$ 3,573,318$
Liabilities:
Accounts payable 240,166$ -$ 240,166$
Accrued payroll and benefits 84,215 - 84,215
Total Liabilities 324,381 - 324,381
Deferred inflows of resources:
Unavailable revenues 115,331 - 115,331
Fund balances:
Nonspendable:
Prepaid items 79,100 - 79,100
Committed:
Emergency reserve - 1,458,275 1,458,275
Unassigned 1,596,231 - 1,596,231
Total fund balances 1,675,331 1,458,275 3,133,606
Total liabilities, deferred inflows and
fund balances 2,115,043$ 1,458,275$ 3,573,318$
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - General Fund
December 31, 2016
45
Schedule 6
General Reserve
Fund Fund Eliminations Totals
Revenues:
Taxes 2,971,268$ 15,364$ -$ 2,986,632$
Intergovernmental 102,073 - - 102,073
Charges for services 41,411 - - 41,411
Fines and forfeitures 191,726 - - 191,726
Licenses and permits 328,239 - - 328,239
Charges for sewer 103,530 - - 103,530
Interest 8,149 - - 8,149
Other 97,215 - - 97,215
Total Revenues 3,843,611 15,364 - 3,858,975
Expenditures:
Current:
General government 1,015,849 - - 1,015,849
Public safety 1,246,581 - - 1,246,581
Public works 596,184 - - 596,184
Parks and recreation 473,540 - - 473,540
Community development 357,684 - - 357,684
3,689,838 - - 3,689,838
Excess of Revenues Over
(Under) Expenditures 153,773 15,364 169,137
Other financing sources (uses):
Transfers in 190,000 317,500 (317,500) 190,000
Transfers out (333,410) (144,431) 317,500 (160,341)
Sale of capital assets 10,625 - - 10,625
Total Other Financing Sources (132,785) 173,069 - 40,284
Change in fund balance 20,988 188,433 - 209,421
Fund Balances, Beginning of Year 1,654,343 1,269,842 - 2,924,185
Fund Balances, End of Year 1,675,331$ 1,458,275$ -$ 3,133,606$
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
General Fund
For the Year Ended December 31, 2016
46
Schedule 7
River Certificates of Brush Brink
Park Participation Creek Meyer Totals
Assets:
Restricted cash and investments 162,492$ 78,488$ 500,512$ 291,125$ 1,032,617$
Receivables:
Special assessments 1,023,709 - 3,187,971 - 4,211,680
Total Assets 1,186,201$ 78,488$ 3,688,483$ 291,125$ 5,244,297$
Liabilities:
Accounts payable -$ -$ -$ -$ -$
Total Liabilities - - - - -
Deferred inflows of resources:
Unavailable revenues 1,034,445 41,757 3,194,829 - 4,271,031
Fund balances:
Restricted:
Debt service 151,756 36,731 493,654 291,125 973,266
Total fund balances 151,756 36,731 493,654 291,125 973,266
Total liabilities, deferred inflows
and fund balances 1,186,201$ 78,488$ 3,688,483$ 291,125$ 5,244,297$
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - Debt Service Fund
December 31, 2016
47
Schedule 8
River Certificates of Brush Brink
Park Participation Creek Meyer Totals
Revenues:
Taxes -$ 338,407$ -$ -$ 338,407$
Special assessments 307,423 - 246,876 3,774 558,073
Interest 167 127 4,407 3,221 7,922
Total Revenues 307,590 338,534 251,283 6,995 904,402
Expenditures:
Debt service:
Principal 280,000 - - - 280,000
Interest and fiscal charges 40,965 57,736 189,087 149,988 437,776
320,965 57,736 189,087 149,988 717,776
Excess of Revenues Over
(Under) Expenditures (13,375) 280,798 62,196 (142,993) 186,626
Other financing sources (uses):
Transfers in - - - 144,431 144,431
Total Other Financing Sources - - - 144,431 144,431
Change in fund balance (13,375) 280,798 62,196 1,438 331,057
Fund Balances, Beginning of Year 165,131 (244,067) 431,458 289,687 642,209
Fund Balances (deficit), End of Year 151,756$ 36,731$ 493,654$ 291,125$ 973,266$
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Debt Service Fund
For the Year Ended December 31, 2016
48
Schedule 9
Permanent Capital
Fund Project Fund
Court Police Market
Economic Nature Parks Recoupment Training Fees Police TIF Place Fewson Capital
Development Sanctuary Donations Fees LET Shop Development Development Project Projects Totals
Assets
Cash and investments 1,279$ 43,493$ 49,962$ 40,764$ 41,372$ 15,430$ 12,451$ 9,425$ -$ 20,646$ 234,822$
Restricted cash and investments - - - - - - - - 574,442 - 574,442
Total Assets 1,279$ 43,493$ 49,962$ 40,764$ 41,372$ 15,430$ 12,451$ 9,425$ 574,442$ 20,646$ 809,264$
Liabilities and Fund Balances
Liabilities:
Accounts payable -$ -$ -$ -$ -$ 4,855$ -$ -$ -$ 9,473$ 14,328$
Total Liabilities - - - - - 4,855 - - - 9,473 14,328
Fund balances
Nonspendable:
Fewson trust - - - - - - - - 569,547 - 569,547
Restricted:
Capital projects - - - - - - - - 4,895 4,895
Public safety - - - 40,764 41,372 10,575 - - - - 92,711
Parks and recreation - 43,493 49,962 - - - - - - - 93,455
Community development 1,279 - - - - - 12,451 9,425 - - 23,155
Assigned:
Capital projects - - - - - - - - - 11,173 11,173
Total fund balances 1,279 43,493 49,962 40,764 41,372 10,575 12,451 9,425 574,442 11,173 794,936
Total liabilities and fund balances 1,279$ 43,493$ 49,962$ 40,764$ 41,372$ 15,430$ 12,451$ 9,425$ 574,442$ 20,646$ 809,264$
Special Revenue Funds
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - Non-major Governmental Funds
December 31, 2016
49
Schedule 10
Permanent Capital
Fund Project Fund
Court Police Market
Economic Nature Parks Recoupment Training Fees Police TIF Place Fewson Capital
Development Sanctuary Donations Fees LET Shop Development Development Project Projects Totals
Revenues:
Taxes 1,397$ -$ -$ -$ -$ -$ 273,228$ -$ -$ -$ 274,625$
Intergovernmental - 7,425 - - 1,243 - 177,307 - - 172,431 358,406
Charges for services - - - 1,835 2,359 - - - - - 4,194
Interest - - - - - - 12 9 5,238 - 5,259
Grants and donations - 4,760 31,142 - - 7,723 - - - 34,618 78,243
Other - 1,500 - - - - - - - - 1,500
Total Revenues 1,397 13,685 31,142 1,835 3,602 7,723 450,547 9 5,238 207,049 722,227
Expenditures:
Current:
Public safety - - - - 3,692 5,849 - - - - 9,541
Parks and recreation - 4,900 6,384 - - - - - - - 11,284
Community development 999 - - - - - 450,540 - - - 451,539
Capital outlay - - - - - - - - - 268,530 268,530
999 4,900 6,384 - 3,692 5,849 450,540 - - 268,530 740,894
Excess of Revenues
Over (Under) Expenditures 398 8,785 24,758 1,835 (90) 1,874 7 9 5,238 (61,481) (18,667)
Other financing sources (uses):
Transfers in - - - - - - - - - 15,910 15,910
Total Other Financing
Sources (Uses) - - - - - - - - - 15,910 15,910
Change in fund balance 398 8,785 24,758 1,835 (90) 1,874 7 9 5,238 (45,571) (2,757)
Fund Balances, Beginning of Year 881 34,708 25,204 38,929 41,462 8,701 12,444 9,416 569,204 56,744 797,693
Fund Balances, End of Year 1,279$ 43,493$ 49,962$ 40,764$ 41,372$ 10,575$ 12,451$ 9,425$ 574,442$ 11,173$ 794,936$
Special Revenue Funds
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-major Governmental Funds
For the Year Ended December 31, 2016
50
Schedule 11
Variance with
2016 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 15,364$ 15,364$ 15,364$ -$
Total Revenues 15,364 15,364 15,364 -
Total Expenditures - - - -
Excess of Revenues Over Expenditures 15,364 15,364 15,364 -
Other financing sources (uses):
Transfers in 317,500 317,500 317,500 -
Transfers out (146,758) (146,758) (144,431) 2,327
Total Other Financing Sources (Uses) 170,742 170,742 173,069 2,327
Change in fund balance 186,106$ 186,106$ 188,433 2,327$
Fund Balance, Beginning of Year 1,269,842
Fund Balance, End of Year 1,458,275$
CITY OF PARKVILLE, MISSOURI
For the Year Ended December 31, 2016
Fund Balance - Budget and Actual
Schedule of Revenues, Expenditures and Changes in
Reserve Fund
51
Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance
Positive
(Negative)
Revenues:
Taxes -$ -$ -$ 330,536$ 338,407$ 7,871$ -$ -$ -$ -$ -$ -$ 330,536$ 338,407$ 7,871$
Special assessments 321,100 307,423 (13,677) - - - 248,497 246,876 (1,621) - 3,774 3,774 569,597 558,073 (11,524)
Interest 200 167 (33) 100 127 27 4,500 4,407 (93) 3,230 3,221 (9) 8,030 7,922 (108)
Total Revenues 321,300 307,590 (13,710) 330,636 338,534 7,898 252,997 251,283 (1,714) 3,230 6,995 3,765 908,163 904,402 (3,761)
Expenditures:
Debt service:
Principal 280,000 280,000 - 270,000 - 270,000 - - - - - - 550,000 280,000 270,000
Interest and fiscal charges 41,300 40,965 335 60,636 57,736 2,900 189,088 189,087 1 149,988 149,988 - 441,012 437,776 3,236
Total Expenditures 321,300 320,965 335 330,636 57,736 272,900 189,088 189,087 1 149,988 149,988 - 991,012 717,776 273,236
Excess of Revenues Over
(Under) Expenditures - (13,375) (13,375) - 280,798 280,798 63,909 62,196 (1,713) (146,758) (142,993) 3,765 (82,849) 186,626 269,475
Other financing sources (uses):
Transfers in - - - - - - - - - 146,758 144,431 (2,327) 146,758 144,431 (2,327)
Total Other Financing Sources (Uses) - - - - - - - - - 146,758 144,431 (2,327) 146,758 144,431 (2,327)
Change in fund balance -$ (13,375) (13,375)$ -$ 280,798 280,798$ 63,909$ 62,196 (1,713)$ -$ 1,438 1,438$ 63,909$ 331,057 267,148$
Fund Balance, (deficit) Beginning of Year 165,131 (244,067) 431,458 289,687 642,209
Fund Balance, End of Year 151,756$ 36,731$ 493,654$ 291,125$ 973,266$
CITY OF PARKVILLE, MISSOURI
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Debt Service Funds
For the Year Ended December 31, 2016
Schedule 12
River Park Certificates of Participation Brush Creek Brink Meyer Totals
52
Schedule 13
Variance with
2016 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 1,515$ 1,515$ 1,397$ (118)$
Total Revenues 1,515 1,515 1,397 (118)
Expenditures:
Community development 1,000 1,000 999 1
Total Expenditures 1,000 1,000 999 1
Change in fund balance 515$ 515$ 398 (117)$
Fund Balance, Beginning of Year 881
Fund Balance, End of Year 1,279$
CITY OF PARKVILLE, MISSOURI
Economic Development
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2016
53
Schedule 14
Variance with
2016 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental -$ -$ 7,425$ 7,425$
Grants and donations - - 4,760 4,760
Other 3,000 3,000 1,500 (1,500)
Total Revenues 3,000 3,000 13,685 10,685
Expenditures:
Parks and recreation 6,200 6,200 4,900 1,300
Total Expenditures 6,200 6,200 4,900 1,300
Change in fund balance (3,200)$ (3,200)$ 8,785 11,985$
Fund Balance, Beginning of Year 34,708
Fund Balance, End of Year 43,493$
CITY OF PARKVILLE, MISSOURI
Nature Sanctuary
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2016
54
Schedule 15
Variance with
2016 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Grants and donations 2,500$ 2,500$ 31,142$ 28,642$
Total Revenues 2,500 2,500 31,142 28,642
Expenditures:
Parks and recreation 5,000 5,000 6,384 (1,384)
Total Expenditures 5,000 5,000 6,384 (1,384)
Change in fund balance (2,500)$ (2,500)$ 24,758 27,258$
Fund Balance, Beginning of Year 25,204
Fund Balance, End of Year 49,962$
CITY OF PARKVILLE, MISSOURI
Parks Donations
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2016
55
Schedule 16
Variance with
2016 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Interest 6,550$ 6,550$ 5,238$ (1,312)$
Total Revenues 6,550 6,550 5,238 (1,312)
Expenditures:
Capital outlay - - - -
Total Expenditures - - - -
Excess of Revenues Over Expenditures 6,550 6,550 5,238 (1,312)
Other financing sources (uses):
Transfers out (5,378) (5,378) - 5,378
Total Other Financing Sources (Uses) (5,378) (5,378) - 5,378
Change in fund balance 1,172$ 1,172$ 5,238 4,066$
Fund Balance, Beginning of Year 569,204
Fund Balance, End of Year 574,442$
For the Year Ended December 31, 2016
Fund Balance - Budget and Actual
Fewson Fund
CITY OF PARKVILLE, MISSOURI
Schedule of Revenues, Expenditures and Changes in
56
Schedule 17
Variance with
2016 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental 50,000$ 50,000$ 172,431$ 122,431$
Grants and donations 134,000 134,000 34,618 (99,382)
Total Revenues 184,000 184,000 207,049 23,049
Expenditures:
Capital outlay 380,672 380,672 268,530 112,142
Total Expenditures 380,672 380,672 268,530 112,142
Excess of Revenues Over Expenditures (196,672) (196,672) (61,481) 135,191
Other financing sources (uses):
Transfers in 155,000 155,000 15,910 (139,090)
Total Other Financing Sources (Uses) 155,000 155,000 15,910 (139,090)
Change in fund balance (41,672)$ (41,672)$ (45,571) (3,899)$
Fund Balance, Beginning of Year 56,744
Fund Balance, End of Year 11,173$
CITY OF PARKVILLE, MISSOURI
Capital Projects
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2016
57