HomeMy Public PortalAbout2017 Audit
City of Parkville, Missouri
Basic Financial Statements
With
Independent Auditor’s Report
For the Year Ended
December 31, 2017
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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 21-40
Schedule Page
Required Supplementary Information:
Notes to Required Supplementary Information 41
Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – General Fund 1 42
Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – Transportation Sales Tax Fund 2 43
Schedule of Changes in Net Pension Liability and Related Ratios 3 44
Schedule of Employer Contributions 4 45
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 46
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – General Fund 6 47
Combining Balance Sheet – Debt Service Fund 7 48
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Debt Service Fund 8 49
Combining Balance Sheet – Non-major Governmental Funds 9 50
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Non-major Governmental Funds 10 51
Schedules of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual –
Reserve Fund 11 52
Debt Service Fund 12 53
Economic Development 13 54
Nature Sanctuary 14 55
Parks Donation 15 56
Fewson Fund 16 57
Capital Projects 17 58
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, 2017, 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,
2017, 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
2
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’s basic financial statements. The combining and individual non-major fund financial
statements and schedules 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 May 29, 2018, 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 effectiveness of the City’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Kansas City, Missouri
May 29, 2018
3
CITY OF PARKVILLE, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2017
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, 2017. 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 $9,381,892 (net position), a decrease of
$509,944 over the prior year.
2. As of the close of the current year, the City’s governmental funds showed a combined
ending balance of $6,401,785, an increase of $1,212,565 from the prior year.
Approximately 23.6 percent of the fund balance, $1,512,790 is unassigned and available
for spending at the City’s discretion.
3. The City’s total long-term debt increased $1,238,429 from 2016. The City entered into a
$2,353,700 loan agreement to provide funding for the City’s 2017 mill and overlay
program and the Route 9 improvement project.
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
2017 2016 2017 2016 2017 2016
Current and other assets 12,746,419$ 12,109,872$ 693,130$ 744,511$ 13,439,549$ 12,854,383$
Capital assets 10,420,203 10,141,308 3,325,554 3,469,410 13,745,757 13,610,718
Total assets 23,166,622 22,251,180 4,018,684 4,213,921 27,185,306 26,465,101
Deferred charge on refunding 27,193 30,160 - - 27,193 30,160
Deferred outflows - pension 190,033 207,311 - - 190,033 207,311
Total deferred outflows of resources 217,226 237,471 - - 217,226 237,471
Long-term debt 15,511,400 14,440,725 1,207,513 1,365,432 16,718,913 15,806,157
Other liabilities 907,035 583,771 110,049 168,908 1,017,084 752,679
Total liabilities 16,418,435 15,024,496 1,317,562 1,534,340 17,735,997 16,558,836
Deferred inflow - property taxes 178,215 157,088 - - 178,215 157,088
Deferred inflow - pension 106,428 94,812 - - 106,428 94,812
Total deferred intflows of resources 284,643 251,900 - - 284,643 251,900
Net position:
Net investment in capital assets 3,599,650 2,914,182 2,118,041 2,103,978 5,717,691 5,018,160
Restricted 2,051,443 2,044,441 162,166 163,509 2,213,609 2,207,950
Unrestricted 1,029,677 2,253,632 420,915 412,094 1,450,592 2,665,726
Total net position 6,680,770$ 7,212,255$ 2,701,122$ 2,679,581$ 9,381,892$ 9,891,836$
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
$9,381,892 at the close of the year ended December 31, 2017.
7
Figure 2 – Statement of Changes in Net Position
Activities Activities Total
Revenues:
Program revenues:
Charges for services 753,324$ 739,645$ 1,201,599$ 1,067,089$ 1,954,923$ 1,806,734$
Operating grants and contributions 268,266 304,166 - - 268,266 304,166
Capital grants and contributions 951,587 1,493,568 136,661 40,876 1,088,248 1,534,444
General revenues:
Property taxes 1,547,190 1,497,861 - - 1,547,190 1,497,861
Sales taxes 1,725,601 1,695,966 - - 1,725,601 1,695,966
Franchise taxes 832,472 859,041 - - 832,472 859,041
Intergovernmental activity taxes 159,670 177,307 - - 159,670 177,307
Other taxes 1,319 1,397 - - 1,319 1,397
Other 121,263 76,030 8,861 9,168 130,124 85,198
Total revenues 6,360,692 6,844,981 1,347,121 1,117,133 7,707,813 7,962,114
Expenses:
General government 1,312,725 1,139,101 - - 1,312,725 1,139,101
Public safety 1,473,865 1,323,123 - - 1,473,865 1,323,123
Public works 2,441,014 1,623,834 - - 2,441,014 1,623,834
Parks and recreation 453,053 517,469 - - 453,053 517,469
Community development 737,342 1,057,849 - - 737,342 1,057,849
Interest on long-term debt 474,178 433,171 - - 474,178 433,171
Sewer - - 1,325,580 1,469,060 1,325,580 1,469,060
Total expenses 6,892,177 6,094,547 1,325,580 1,469,060 8,217,757 7,563,607
Change in net position (531,485) 750,434 21,541 (351,927) (509,944) 398,507
Net position, beginning 7,212,255 6,461,821 2,679,581 3,031,508 9,891,836 9,493,329
Net position, ending 6,680,770$ 7,212,255$ 2,701,122$ 2,679,581$ 9,381,892$ 9,891,836$
20162017
Governmental Business-type
20172017 2016 2016
The City's net position decreased $509,944 during the 2017 fiscal year. Of the total,
governmental activities net position decreased $531,485 and business-type activities net
position increased by $21,541. Total 2017 governmental revenue decreased $492,618 over
2016 primarily due to decreases in contributed infrastructure capital assets. Total governmental
activities expenses increased $789,301. The increase is primarily attributable to the expansion
of the City’s mill and overlay program in 2017 over 2016.
Total 2017 business-type activities revenues increased over 2016 due to a rate increase. Total
business-type expenses decreased $143,480 primarily due planned repair and maintenance
expenses incurred in 2016 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 $6,401,785. Of this amount
$4,888,995 is non-spendable, restricted, committed or assigned for various purposes and
$1,512,790 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 $3,044,645. 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 38.6% of total general fund expenditures. Included in the general fund’s committed
fund balance is the City’s reserve fund which totaled $1,446,615 at December 31, 2017.
The City’s fund balance of the general fund decreased by $88,961 during the current fiscal year.
General Fund revenues increased by $53,171 over 2016 primarily related to increases
administrative fees and building permits. 2017 general fund expenditures, excluding transfers
out, were approximately $230,440 more than 2016. The increase is mostly attributable to
salaries, wages and benefits and capital outlay. The City also experienced significant increases
in utilities, specifically electricity and increases in the Professional Services resulted from an
executive firm search for a City Administrator and a Compensation and Classification Study
undertaken in 2017.
At December 31, 2017, the transportation sales tax fund has an ending fund balance of
$1,637,554, all of which is restricted. The fund balance increased by $1,350,142 during the year
primarily from unspent loan proceeds that will be used to fund future Route 9 improvement
expenditures.
The debt service fund has a total fund balance of $884,659, all of which is restricted for the
payment of principal, interest and fees. The fund balance decreased by $88,607 during the
year.
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 $2,701,122 of which $420,915 is unrestricted. The sewer fund’s net position increased
by $21,541 from the prior year due to an increase in customer sewer rates.
General Fund Actual to Budget Analysis
Actual revenues exceeded budgeted revenues by $98,586 primarily due to license and permits
exceeding budgeted revenues. Actual expenditures were $380,062 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. 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 $13,745,757 invested in capital assets including land,
construction in progress, buildings, equipment, vehicles, infrastructure, and sewer lines net of
accumulated depreciation. (See table below) This represents a net increase of $135,039 from
last year as current year capital asset additions exceeded depreciation expense.
City of Parkville, Missouri
Capital Assets (Net of Depreciation)
Additional information on the City’s capital assets can be found in Note 6 in the Notes to the
Basic Financial Statements.
2017 2016 2017 2016 2017 2016
Land 869,880$ 869,880$ 59,975$ 59,975$ 929,855$ 929,855$
Construction in progress 121,611 - - - 121,611 -
Buildings and improvements 3,101,484 3,213,826 1,782,924 1,962,025 4,884,408 5,175,851
Equipment and vehicles 487,647 461,403 32,372 49,028 520,019 510,431
Infrastructure 5,839,581 5,596,199 1,450,283 1,398,382 7,289,864 6,994,581
Total 10,420,203$ 10,141,308$ 3,325,554$ 3,469,410$ 13,745,757$ 13,610,718$
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 $16,718,913.
City of Parkville, Missouri
Outstanding Debt
2017 2016 2017 2016 2017 2016
Limited General Obligation
Bonds (plus premium) 10,028,329$ 10,688,426$ -$ -$ 10,028,329$ 10,688,426$
Certificates of Participation 3,086,608 3,383,722 - - 3,086,608 3,383,722
Loan agreement 2,353,700 - - - 2,353,700 -
Compensated Absences 42,763 42,904 - - 42,763 42,904
Revenue Bonds (plus premium) - - 1,207,513 1,365,432 1,207,513 1,365,432
Total 15,511,400$ 14,115,052$ 1,207,513$ 1,365,432$ 16,718,913$ 15,480,484$
Total
Governmental Business-Type
Activities Activities
The governmental activities increased $1,396,348 and the business-type activities decreased
$157,919.
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 2018 revenues and expenditure budgets
at or near 2017 levels. The 2018 budget maintains essential services at current levels and
directs limited additional resources toward the 2018 Priorities as established by the Board of
Aldermen in August 2017. The City reaffirmed the five Critical Success Factors of Basic
Services, Infrastructure, Economic Development, Parks and Finances. The City established
priorities for the next twelve to eighteen months that include promoting downtown revitalization,
continuing to investigate and analyze development options for the intersection of I-435 and
Highway 45, continuing to focus on Route 9 improvements, and conducting an ongoing
comprehensive capital improvement plan that will identify priorities, costs, financing alternatives
and a schedule of improvements. The City continues to experience steady growth in its retail,
residential, and commercial base that bodes well for future financial security with several
exciting developments anticipated in the coming years. 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. For example, the English Landing Park restroom project, a long-deferred community
priority, will be completed in 2018. The City also entered into a loan agreement with Bank
Liberty to secure funding for enhanced street maintenance and Route 9 improvements. The City
will receive a federal funding grant through the Mid-America Regional Council (MARC) as well
as 9 Highway Corridor Community Improvement District Funds.
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 3,352,691$ 369,728$ 3,722,419$
Receivables:
Taxes 582,778 - 582,778
Special assessments 3,772,494 - 3,772,494
Accounts and other 53 147,713 147,766
Due from other governments 18,402 - 18,402
Prepaids, deposits, and other assets 85,240 38 85,278
Restricted assets:
Cash and investments 2,834,761 175,651 3,010,412
Land held for redevelopment 2,100,000 - 2,100,000
Capital assets:
Not being depreciated 991,491 59,975 1,051,466
Being depreciated, net of depreciation 9,428,712 3,265,579 12,694,291
Total assets 23,166,622 4,018,684 27,185,306
Deferred Outflows of Resources
Deferred charges on refunding 27,193 - 27,193
Deferred outflow - pension related activity 190,033 - 190,033
Total deferred outflows of resources 217,226 - 217,226
Liabilities
Accounts payable 163,079 66,868 229,947
Accrued payroll and benefits 89,041 602 89,643
Accrued interest 158,095 29,094 187,189
Payable from restricted assets:
Customer deposits - 13,485 13,485
Long term debt:
Net pension liability 496,820 - 496,820
Due within one year 1,252,115 157,919 1,410,034
Due in more than one year 14,259,285 1,049,594 15,308,879
Total liabilities 16,418,435 1,317,562 17,735,997
Deferred Inflows of Resources
Deferred inflow - property taxes 178,215 - 178,215
Deferred inflow - pension related activity 106,428 - 106,428
Total deferred inflows of resources 284,643 - 284,643
Net Position
Net investment in capital assets 3,599,650 2,118,041 5,717,691
Restricted :
Capital projects 362,643 - 362,643
Debt service 884,659 162,166 1,046,825
Public safety 90,206 - 90,206
Parks and recreation 119,019 - 119,019
Community development 23,151 - 23,151
Fewson trust (non-expendable)571,765 - 571,765
Unrestricted 1,029,677 420,915 1,450,592
Total net position 6,680,770$ 2,701,122$ 9,381,892$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Net Position
December 31, 2017
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 1,312,725$ 538,338$ -$ -$ (774,387)$ -$ (774,387)$
Public safety 1,473,865 178,534 8,225 - (1,287,106) - (1,287,106)
Public works 2,441,014 - 224,599 951,587 (1,264,828) - (1,264,828)
Parks and recreation 453,053 36,452 35,442 - (381,159) - (381,159)
Community development 737,342 - - - (737,342) - (737,342)
Interest on long-term debt 474,178 - - - (474,178) - (474,178)
Total governmental activities 6,892,177 753,324 268,266 951,587 (4,919,000) - (4,919,000)
Business-type activities
Sewer 1,325,580 1,201,599 - 136,661 - 12,680 12,680
Total business-type activities 1,325,580 1,201,599 - 136,661 - 12,680 12,680
Total primary government 8,217,757$ 1,954,923$ 268,266$ 1,088,248$ (4,919,000) 12,680 (4,906,320)
General revenues:
Taxes:
Property taxes, levied for general purpose 1,173,429 - 1,173,429
Property taxes, levied for debt service 373,761 - 373,761
Sales taxes 1,725,601 - 1,725,601
Franchise taxes 832,472 - 832,472
Intergovernmental activity taxes 159,670 - 159,670
Other taxes 1,319 - 1,319
Unrestricted investment earnings 17,948 4,240 22,188
Gain on disposal of capital assets 23,330 - 23,330
Miscellaneous 79,985 4,621 84,606
Total general revenues 4,387,515 8,861 4,396,376
Change in net position (531,485) 21,541 (509,944)
Net position, beginning of year 7,212,255 2,679,581 9,891,836
Net position, end of year 6,680,770$ 2,701,122$ 9,381,892$
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, 2017
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 2,725,988$ 369,559$ -$ 257,144$ 3,352,691$
Receivables:
Taxes 505,077 77,701 - - 582,778
Special assessments - - 3,772,494 - 3,772,494
Accounts and other 53 - - - 53
Due from other governments 6,055 12,347 - - 18,402
Prepaids, deposits and other assets 85,240 - - - 85,240
Restricted cash and investments - 1,282,024 973,859 578,878 2,834,761
Total Assets 3,322,413$ 1,741,631$ 4,746,353$ 836,022$ 10,646,419$
Liabilities
Accounts payable 57,907$ 104,077$ -$ 1,095$ 163,079$
Accrued payroll and benefits 89,041 - - - 89,041
Total Liabilities 146,948 104,077 - 1,095 252,120
Deferred inflows of resources
Unavailable revenues 130,820 - 3,861,694 - 3,992,514
Fund balances:
Nonspendable:
Prepaid items 85,240 - - - 85,240
Fewson trust - - - 571,765 571,765
Restricted:
Capital projects - 1,637,554 - 7,113 1,644,667
Debt service - - 884,659 - 884,659
Public safety - - - 90,206 90,206
Parks and recreation - - - 119,019 119,019
Community development - - - 23,151 23,151
Committed:
Emergency reserve 1,446,615 - - - 1,446,615
Assigned:
Capital projects - - - 23,673 23,673
Unassigned 1,512,790 - - - 1,512,790
Total fund balance 3,044,645 1,637,554 884,659 834,927 6,401,785
Total liabilities, deferred inflows
and fund balances 3,322,413$ 1,741,631$ 4,746,353$ 836,022$ 10,646,419$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Balance Sheet - Governmental Funds
December 31, 2017
13
Exhibit C
Continued
Fund balances of governmental funds 6,401,785$
3,814,299
10,420,203
2,100,000
27,193
83,605
(158,095)
(496,820)
Long-term liabilities (15,511,400)
Net position of governmental activities 6,680,770$
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 are 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 special assessments 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 redevelopment 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, 2017
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 3,003,033$ 467,233$ 373,761$ 262,555$ 4,106,582$
Intergovernmental 84,579 501,330 - 160,680 746,589
Charges for services 36,452 - - 3,804 40,256
Fines and forfeitures 174,730 - - - 174,730
Licenses and permits 365,903 - - - 365,903
Special assessments - - 574,762 - 574,762
Grants and donations - - - 53,658 53,658
Charges for sewer administration 150,000 - - - 150,000
Interest 7,673 - 5,817 4,458 17,948
Other 89,777 2,641 - 1,499 93,917
Total Revenues 3,912,147 971,204 954,340 486,654 6,324,345
Expenditures:
Current:
General government 1,203,229 - - - 1,203,229
Public safety 1,318,291 - - 14,534 1,332,825
Public works 686,972 - - - 686,972
Parks and recreation 416,899 - - 9,878 426,777
Community development 294,887 - - 422,251 717,138
Capital outlay - 1,702,061 - - 1,702,061
Debt service:
Principal - - 932,114 - 932,114
Interest and fiscal charges - 47,701 439,993 - 487,694
Total Expenditures 3,920,278 1,749,762 1,372,107 446,663 7,488,810
Excess of Revenues Over (Under) Expenditures (8,131) (778,558) (417,767) 39,991 (1,164,465)
Other financing sources (uses):
Transfers in 225,000 - 329,160 - 554,160
Transfers out (329,160) (225,000) - - (554,160)
Sale of capital assets 23,330 - - - 23,330
Proceeds from loan - 2,353,700 - - 2,353,700
Total Other Financing Sources (Uses) (80,830) 2,128,700 329,160 - 2,377,030
Net change in fund balances (88,961) 1,350,142 (88,607) 39,991 1,212,565
Fund balances, beginning of year 3,133,606 287,412 973,266 794,936 5,189,220
Fund balances, end of year 3,044,645$ 1,637,554$ 884,659$ 834,927$ 6,401,785$
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, 2017
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 1,212,565$
Governmental funds report capital outlaysas expenditures. However,
in the Statement of Activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation
expense.
Capital outlay costs in excess of capitalization threshold 328,435
Depreciation (477,532)
Donated capital assets 427,992
Revenues in the statement of activities that do not provide current
financial resources are reported as deferred inflows in the
governmental funds.
Special assessments (414,975)
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 932,114
Proceeds from loan (2,353,700)
Changes in unamortized bond issuance discount and premium 22,130
Changes in accrued interest expense (8,614)
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 (199,900)
Change in net position of governmental activities (531,485)$
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, 2017
Governmental Funds to the Statement of Activities
16
Exhibit E
Sewer
Fund
Assets
Current assets:
Cash and investments 369,728$
Receivables, net:
Accounts and other 147,713
Prepaid expenses 38
Restricted cash and investments 175,651
Total current assets 693,130
Noncurrent assets:
59,975
3,265,579
Total noncurrent assets 3,325,554
Total assets 4,018,684
Liabilities
Current liabilities:
Accounts payable 66,868
Accrued liabilities 602
Current liabilities (payable from restricted assets):
Customer deposits 13,485
Accrued interest payable 29,094
Current portion of bonds payable 157,919
Total current liabilities:267,968
Long-term liabilities:
Bonds payable 1,049,594
Total long-term liabilities:1,049,594
Total liabilities 1,317,562
Net position
Net investment in capital assets 2,118,041
Restricted net position for:
Debt service 162,166
Unrestricted 420,915
Total net position 2,701,122$
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, 2017
Capital assets:
Not being depreciated
17
Exhibit F
Sewer
Fund
Operating revenues:
Charges for services 1,201,599$
Other 4,621
Total operating revenues 1,206,220
Operating expenses:
Personnel services 21,720
Contractual services 321,801
Administrative fee 150,000
Depreciation 246,135
Repairs and maintenance 469,860
Other 53,998
Total operating expenses 1,263,514
Operating income (loss) (57,294)
Nonoperating revenues (expenses):
Intergovernmental revenues 34,382
Interest income 4,240
Interest expense (62,066)
Total nonoperating revenues (expenses) (23,444)
Income (loss) before transfers
and capital contributions (80,738)
Capital contributions 102,279
Change in net position 21,541
Total net position, beginning of year 2,679,581
Total net position, end of year 2,701,122$
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, 2017
18
Exhibit G
Sewer
Fund
Cash flows from operating activities:
Receipts from customers and others 1,190,516$
Payments to suppliers (1,049,014)
Payments to employees (21,673)
Net cash provided by (used in) operating activities 119,829
Cash flows provided by (used in) noncapital financing activities:
Intergovernmental revenues 34,382
Net cash flows provided by (used in) noncapital financing activities: 34,382
Cash flows from investing activities:
Interest received 4,240
Net cash flows provided by (used in) investing activities 4,240
Cash flows from capital
and related financing activities:
Interest and fiscal charges (73,735)
Principal payments on long-term debt (150,000)
Net cash flows provided by (used in) capital
and related financing activities (223,735)
Net change in cash and equivalents (65,284)
Cash and equivalents, beginning of year 610,663
Cash and equivalents, end of year 545,379$
Cash and investments reported on the
Statement of Net Position
Cash and investments 369,728$
Restricted cash and investments 175,651
Total cash and investments 545,379$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
Operating income (loss) (57,294)$
Adjustments to reconcile operating loss to
net cash used by operations:
Depreciation and amortization 246,135
Changes in:
Receivables (15,704)
Prepaid expenses and deposits 1,801
Accounts payable (55,156)
Accrued liabilities 47
Net cash provided by (used in) operating activities 119,829$
Noncash capital and financing activities:
Capital contributions 102,279$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2017
19
Exhibit H
Municipal Escrow Total
Court Fund Agency Funds
Assets
Cash and investments 26,070$ 23,808$ 49,878$
Total assets 26,070$ 23,808$ 49,878$
Liabilities
Due to others 26,070$ 23,808$ 49,878$
Total liabilities 26,070$ 23,808$ 49,878$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Assets and Liabilities
Fiduciary Funds
December 31, 2017
20
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
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, 2017
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, 2017
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 (collectable 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, 2017
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 Sewer 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, 2017
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 and improvements 20 – 40 years
Equipment and vehicles 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 change in actual and projected experience, and 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 and change in assumptions 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
changes in assumptions and 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 2018 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, 2017
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 $150,000 for the year ended December 31, 2017.
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, 2017
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. 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.
(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 5,582,819
Certificates of deposits 293,494
US treasuries and agency securities 55,192
Restricted cash equivalents held in trust 850,873
6,782,709$
Government-wide Fiduciary funds
statement statement of
of net position assets and liabilities Total
Cash and investments 3,722,419$ 49,878$ 3,772,297$
Restricted cash and investments 3,010,412 - 3,010,412
6,732,831$ 49,878$ 6,782,709$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
28
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, 2017, 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, 2017.
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.
The City has the following recurring fair value measurements as of December 31, 2017:
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, 2016, was $209,494,747.
Level 1
Investment
Federal Home Loan Bank 55,192$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
29
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 $ 0.4701
General Revenue-
Temporary 0.1777
$ 0.6478 Tax revenues for the year consisted of the following:
Property Sales Franchise Other
Taxes Taxes Taxes Taxes Total
Major governenmental funds:
General $ 1,173,429 $ 997,132 $ 832,472 $ - 3,003,033$
Transporation Sales Tax - 467,233 - - 467,233
Debt Service 373,761 - - - 373,761
Nonmajor funds - 261,236 - 1,319 262,555
$ 1,547,190 $ 1,725,601 $ 832,472 $ 1,319 $ 4,106,582
Taxes receivable represent property, sales, gross receipts, and franchise taxes, including interest and
penalties, reduced by an appropriate allowance for uncollectable taxes. Taxes receivable consisted of the
following at December 31, 2017:
Sales Franchise
Taxes Taxes Total
Major governenmental funds:
General $ 165,149 $ 339,928 505,077$
Transporation Sales Tax 77,701 - 77,701
$ 242,850 $ 339,928 $ 582,778
(4) Intergovernmental Revenues/Receivables
Intergovernmental revenues during the year consisted of the following:
Other
General Transportation Nonmajor
Fund Sales Tax Funds Total
Grants - Federal, State and Local $ 10,000 $ - $ 1,010 $ 11,010
State: -
Motor vehicle sales tax 49,895 - - 49,895
Motor vehicle fuel tax - 150,020 - 150,020
Motor vehicle license
and title transfer fees 24,684 - - 24,684
Local:
Special road district - 140,072 - 140,072
County transportation - 211,238 - 211,238
Economic activity taxes - - 159,670 159,670
Total Intergovernmental revenues $ 84,579 $ 501,330 $ 160,680 $ 746,589
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
30
Amounts due from other governments at December 31, 2017, were as follows:
General Transportation
Fund Sales Tax Total
Motor vehicle sales tax $ 3,994 $ - 3,994$
Motor vehicle fuel tax - 12,347 12,347
Motor vehicle license
and title transfer fees 2,061 - 2,061
Total due from other governments $ 6,055 $ 12,347 $ 18,402
(5) Interfund Activity
Transfers between funds for the year ended December 31, 2016 were as follows:
Transportation
General Sales Tax Total
Transfers In:
Governmental activities:
General Fund -$ 225,000$ 225,000$
Debt Service Fund 329,160 - 329,160
Total 329,160$ 225,000$ 554,160$
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 and (2) use unrestricted revenues in the General
Fund to meet certain special assessment debt service requirements as debt service payments become
due. 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, 2017
31
(6) Capital Assets
A summary of the changes in capital assets for the year ended December 31, 2017 is as follows:
December 31, December 31,
2016 Additions Retirements 2017
Governmental activities:
Capital assets, not being depreciated
Land 869,880$ -$ -$ 869,880$
Construction in progress - 121,611 - 121,611
Total capital assets, not being depreciated 869,880 121,611 - 991,491
Capital assets, being depreciated
Buildings and improvements 4,522,406 - - 4,522,406
Equipment and vehicles 2,222,260 206,824 108,182 2,320,902
Infrastructure 6,979,696 427,992 - 7,407,688
Total capital assets being depreciated 13,724,362 634,816 108,182 14,250,996
Less accumulated depreciation for:
Buildings and improvements 1,308,580 112,342 - 1,420,922
Equipment and vehicles 1,760,857 180,580 108,182 1,833,255
Infrastructure 1,383,497 184,610 - 1,568,107
Total accumulated depreciation 4,452,934 477,532 108,182 4,822,284
Total capital assets being depreciated, net 9,271,428 9,428,712
Governmental activities capital assets, net 10,141,308$ 10,420,203$
December 31, December 31,
2016 Additions Retirements 2017
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 5,376,934 - - 5,376,934
Equipment and vehicles 304,235 - - 304,235
Infrastructure 2,384,899 102,279 - 2,487,178
Total capital assets being depreciated 8,066,068 102,279 - 8,168,347
Less accumulated depreciation for:
Buildings and improvements 3,414,909 179,101 - 3,594,010
Equipment and vehicles 255,207 16,656 - 271,863
Infrastructure 986,517 50,378 - 1,036,895
Total accumulated depreciation 4,656,633 246,135 - 4,902,768
Total capital assets being depreciated, net 3,409,435 3,265,579
Business-type activities capital assets, net 3,469,410$ 3,325,554$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
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 for the year ended December 31, 2017 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 1,200,000$ -$ 285,000$ 915,000$ 295,000$
Series 2014A - Brush Creek 5,375,000 - 210,000 5,165,000 215,000
Series 2014B - Brink Meyer 3,675,000 - 140,000 3,535,000 145,000
Premium on issuance 438,426 - 25,097 413,329 25,097
10,688,426 - 660,097 10,028,329 680,097
Certificates of participation 3,383,722 - 297,114 3,086,608 335,155
Loan agreement - 2,353,700 - 2,353,700 194,100
* Compensated absences 42,904 - 141 42,763 42,763
Total Governmental Activities 14,115,052 2,353,700 957,352 15,511,400 1,252,115
Business-type Activites:
Revenue bonds 1,310,000 - 150,000 1,160,000 150,000
Premium on issuance 55,432 - 7,919 47,513 7,919
Total Business-type Activites 1,365,432 - 157,919 1,207,513 157,919
Total Primary Government 15,480,484$ 2,353,700$ 1,115,271$ 16,718,913$ 1,410,034$
* Primarily liquidated by the General fund in prior years.
Governmental activities:
General government 117,312$
Public safety 51,408
Public works 261,310
Parks and recreation 38,025
Community development 9,477
Total depreciation expense for
governmental activities 477,532$
Business-type activities:
Sewer 246,135$
Total depreciation expense for
business-type activities 246,135$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
33
A. Limited General Obligation Bonds
The City has issued 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, 2017 are as follows:
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% 915,000$
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% 5,165,000
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% 3,535,000
Total limited general obligation bonds 9,615,000$
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,
2016 Additions Retirements 2017
Land held for redevelopment 2,100,000$ -$ -$ 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.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
34
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 tax levy was approved to
fund 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%. The outstanding balance at December 31, 2017, is
$3,086,608.
C. Loan Agreement
During fiscal year 2017, the City entered into a loan agreement for $2,353,700 for the purpose of
transportation related capital improvements. Principal and interest payments are due semi-annually
beginning on September 1, 2017 through March 1, 2022 with principal payments ranging from $194,100
to $1,329,800, with an interest rate of 2.19%. The outstanding balance at December 31, 2017, is
$2,353,700.
Portions of the loan agreement ($1,020,300) will be used to fund the Route 9 Project (the Project). The
total costs of the Project has been estimated at $3,484,000. The Project is currently in the engineering
phase with the construction phase estimated to begin in the spring of 2019. The City has been awarded
$965,000 in federal funds and is anticipating $1,734,500 in state funding for the construction costs of the
Project. It is projected that the federal funds will be available to the City to be used for the scheduled
March 1, 2020 debt service payment. The state and federal funding sources requires a local match of
$784,500. To provide funding for the matching requirement, the City has entered into a cooperative
agreement with the 9 Highway Corridor Community Improvement District (the District). The agreement
provides for reimbursements to the City for certain costs associated with the Project payable from the
District’s 1% sales tax.
D. 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 of the Sewer Fund. The bonds are due in annual installments of $30,000 to $170,000 through
January 1, 2025 with interest ranging from 3.0% to 5.25%. The outstanding balance at December 31,
2017, is $1,160,000.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
35
Future Debt Service Requirements
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2018 295,000$ 24,575$ 215,000$ 177,562$ 145,000$ 141,615$
2019 305,000 15,193 220,000 171,037 150,000 137,188
2020 315,000 5,119 230,000 164,287 155,000 132,613
2021 - - 235,000 157,312 160,000 127,888
2022 - - 240,000 150,188 160,000 123,088
2023-2027 - - 1,330,000 631,456 885,000 685,188
2028-2032 - - 1,580,000 378,438 1,080,000 563,531
2033-2034 - - 1,115,000 52,900 800,000 179,700
915,000$ 44,887$ 5,165,000$ 1,883,180$ 3,535,000$ 2,090,811$
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2018 335,155$ 65,386$ 194,100$ 49,421$ 1,184,255$ 458,559$
2019 354,132 57,666 302,900 43,979 1,332,032 425,063
2020 361,800 49,648 1,329,800 26,100 2,391,600 377,767
2021 388,809 41,241 316,200 8,077 1,100,009 334,518
2022 395,103 32,461 210,700 2,307 1,005,803 308,044
2023-2027 1,251,609 50,312 - - 3,466,609 1,366,956
2028-2032 - - - - 2,660,000 941,969
2033-2034 - - - - 1,915,000 232,600
3,086,608$ 296,714$ 2,353,700$ 129,884$ 15,055,308$ 4,445,476$
Year Ending
December 31, Principal Interest
2018 150,000$ 61,938$
2019 155,000 54,438
2020 160,000 46,619
2021 160,000 38,350
2022 165,000 29,950
2023-2027 370,000 40,725
2028-2032 - -
2033-2034 - -
1,160,000$ 272,020$
Business-type Activities
Sewerage System Revenue
Bonds Series 2004A
Governmental Activities
Governmental Activities
Limited General Obligation
Bonds - Series 2014A
(Brush Creek)
Limited General Obligation Bonds -
Series 2014B
(Brink Meyer)
Limited General Obligation
Refunding Bonds - Series
2010 (River Park)
Certificates of Participation
Series 2015 Loan Agreement Total
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
36
(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,
2017, expenses incurred under these agreements were $28,453 (Kansas City, Missouri) and $19,708
(Platte County Regional Sewer District).
(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.
2017 Valuation
Benefit Multiplier: 1.50% for life
Final Average Salary: 5 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 benefits 2 2 4
Inactive employees entitled to but not yet
receiving benefits 8 9 17
Active employees 17 14 31
27 25 52
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
37
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 7.5% (Police) of annual covered payroll.
E. Net Pension Liability
The City’s net pension liability was measured as of June 30, 2017, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of February 28, 2017.
F. Actuarial Assumptions
The total pension liability in the February 28, 2017 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 28, 2017 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 48.00% 4.81%
Fixed Income 28.50% 1.72%
Real Assets 23.50% 3.42%
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
38
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 available to pay all projected
future benefit payments of current active and inactive employees. Therefore, the long-term expected rate
of return on pension plan investments was applied to all periods of projected benefit payment to
determine the total pension liability.
H. Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
1,443,367$ 1,117,694$ 325,673$
119,807 - 119,807
107,562 - 107,562
Change in benefit terms 252,150 - 252,150
19,236 - 19,236
Change in assumptions (12,160) - (12,160)
- 112,455 (112,455)
- 62,865 (62,865)
- 141,948 (141,948)
(18,639) (18,639) -
- (3,626) 3,626
- 1,806 (1,806)
Net changes 467,956 296,809 171,147
1,911,323$ 1,414,503$ 496,820$ Balances at end of year
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
Administrative expense
Other changes (net transfer)
Difference between expected and actual
Increase (Decrease)
Balances at beginning of year
Changes for the year:
Service Cost
Interest
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
7.25%, as well as what the employer’s Net Pension Liability would be using a discount rate that is one
percentage point lower (6.25%) or one percentage point higher (8.25%) than the current rate.
1% Decrease
Current Single
Discount Rate
Assumption 1% Increase
6.25% 7.25% 8.25%
Total Pension Liability (TPL) 2,260,773$ 1,911,323$ 1,631,795$
Plan Fiduciary Net Position (1,414,503) (1,414,503) (1,414,503)
Net Pension Liability 846,270$ 496,820$ 217,292$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
39
J. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended December 31, 2017, the City recognized LAGERS pension expense of $342,888
($178,467 (General) and $164,421 (Police)). The City reported deferred outflows related to LAGERS
pension from the following sources:
General Police Total
Deferred Outflows of Resources:
Assumption changes 36,818$ 22,727$ 59,545$
Excess investment returns 10,007 10,950 20,957
Difference in experience 5,251 26,523 31,774
Contributions subsequent to the
measurement date* 39,473 38,284 77,757
Total 91,549$ 98,484$ 190,033$
Deferred Inflows of Resources:
Assumption changes 10,324$ -$ 10,324$
Difference in experience 77,883 18,221 96,104
Total 88,207$ 18,221$ 106,428$
*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, 2018.
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
2018 (766)$ 11,729$ 10,963$
2019 (766) 11,729 10,963
2020 (6,103) 7,429 1,326
2021 (14,530) 523 (14,007)
2022 (8,043) 5,115 (2,928)
Thereafter (5,923) 5,454 (469)
Total (36,131)$ 41,979$ 5,848$
K. Payable to the Pension Plan
At December 31, 2017, 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.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2017
40
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, 2017, the fund had $7,113 net appreciation on assets available for expenditure which is
reported as restricted fund balance and $571,765 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.
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 May 29, 2018, the date the financial statements were
available to be issued.
In February 2018, the City and Platte County (County) completed the Platte Landing Park Land Transfer
Agreement whereby the County transferred approximately 131 acres designated as the Platte Landing
Park to the City for the purchase price of $1. In addition, the County made a one-time payment to the City
of $236,000 to fund future capital and maintenance.
CITY OF PARKVILLE, MISSOURI
Notes to Required Supplementary Information
December 31, 2017
41
(1) Budgetary Data
The Board of Alderman adopted annual operating budgets for all funds except for the Court Recoupment
Fees, Police Training Fees LET, Police Shop, TIF Development and Market Place Development funds.
The City’s budget is adopted using Generally Accepted Accounting Principles on the Modified Accrual
Basis of Accounting. Revisions to the budget can be made only by the Board of Alderman. There was one
budget amendment during the year ended December 31, 2017. Legally, expenditures may not exceed the
total amount of expenditures budgeted, as revised, in each fund. All annual appropriations lapse at year
end if not encumbered.
The City follows these procedures in establishing the budgetary date reflected in the financial statements,
beginning in the prior year.
1. In early August, budget worksheets are issued to each department.
2. In early September, budget requests are submitted by departments to the City Administrator.
3. Budget meetings are held between the City Administrator and each department beginning in late
September to early October.
4. In late October, a proposed budget is presented to the Board of Aldermen.
5. In early December, the Board of Alderman adopt the budget.
Schedule 1
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 3,003,500$ 3,003,500$ 3,003,033$ (467)$
Intergovernmental 81,750 81,750 84,579 2,829
Charges for services 39,700 39,700 36,452 (3,248)
Fines and forfeitures 220,000 220,000 174,730 (45,270)
Licenses and permits 279,470 279,470 365,903 86,433
Charges for sewer 150,000 150,000 150,000 -
Interest 8,000 8,000 7,673 (327)
Other 31,141 31,141 89,777 58,636
Total Revenues 3,813,561 3,813,561 3,912,147 98,586
Expenditures:
Current:
General government 1,251,104 1,251,104 1,203,229 47,875
Public safety 1,439,186 1,439,186 1,318,291 120,895
Public works 743,332 743,332 686,972 56,360
Parks and recreation 564,680 564,680 416,899 147,781
Community development 302,038 302,038 294,887 7,151
Total Expenditures 4,300,340 4,300,340 3,920,278 380,062
Excess of Revenues Over
(Under) Expenditures (486,779) (486,779) (8,131) 478,648
Other Financing Sources (Uses):
Transfers in 225,000 225,000 225,000 -
Transfers out (317,500) (317,500) (317,500) -
Sale of capital assets 5,000 5,000 23,330 18,330
Total Other Financing Sources (Uses) (87,500) (87,500) (69,170) 18,330
Change in fund balance (574,279)$ (574,279)$ (77,301) 496,978$
Fund Balances, Beginning of Year 1,675,331
Fund Balances, End of Year 1,598,030$
Note: GAAP is the budgetary basis used to prepare this schedule
2017
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, 2017
42
Schedule 2
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 472,000$ 472,000$ 467,233$ (4,767)$
Intergovernmental 519,000 519,000 501,330 (17,670)
Other 5,304 5,304 2,641 (2,663)
Total Revenues 996,304 996,304 971,204 (25,100)
Expenditures:
Current:
Capital outlay 2,919,112 2,919,112 1,702,061 1,217,051
Debt service:
Interest and fiscal charges - - 47,701 (47,701)
Total Expenditures 2,919,112 2,919,112 1,749,762 1,169,350
Excess of Revenues Over
(Under) Expenditures (1,922,808) (1,922,808) (778,558) 1,144,250
Other Financing Sources (Uses):
Transfers out (225,000) (225,000) (225,000) -
Sale of capital assets 25,500 25,500 - (25,500)
Proceeds from lease 2,279,112 2,279,112 2,353,700 74,588
Total Other Financing Sources (Uses) 2,079,612 2,079,612 2,128,700 49,088
Change in fund balance 156,804$ 156,804$ 1,350,142 1,193,338$
Fund Balances, Beginning of Year 287,412
Fund Balances, End of Year 1,637,554$
Note: GAAP is the budgetary basis used to prepare this schedule
2017
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, 2017
43
Schedule 3
2017 2016 2015
Total Pension Liability
Service costs 119,807$ 116,946$ 104,714$
Interest on total pension liability 107,562 93,722 69,352
Changes in benefit terms 252,150 - 226,297
Difference between expected and
actual experience of the total pension liability 19,236 (66,469) (47,700)
Changes of assumptions (12,160) 79,853
Benefit payments and refunds (18,639) (31,360) (14,002)
Net change in total pension liability 467,956 192,692 338,661
Total pension liability - beginning of year 1,443,367 1,250,675 912,014
Total pension liability - end of year (a)1,911,323$ 1,443,367$ 1,250,675$
Plan Fiduciary Net Position
Contributions - employer 112,455$ 93,771$ 73,690$
Contributions - employee 62,865 61,441 60,880
Net investment income 141,948 63 17,409
Benefit payments and refunds (18,639) (31,360) (14,002)
Administrative expenses (3,626) (3,451) (3,356)
Other (net transfer) 1,806 (3,952) 38,126
Net change in plan fiduciary net position 296,809 116,512 172,747
Plan fiduciary net positon - beginning of year 1,117,694 1,001,182 828,435
Plan fiduciary net positon - end of year (b)$ 1,414,503 $ 1,117,694 $ 1,001,182
Net pension liability (a) - (b)$ 496,820 $ 325,673 $ 249,493
Plan net position as a percentage of the
total pension liability 74.01% 77.44% 80.05%
Covered employee payroll 1,457,585 1,415,099 1,414,512
Net pension liability/(asset) as a
percentage of covered payroll 34.09% 23.01% 17.64%
GASB 68 requires presentation of ten years. As of December 31, 2017, only three 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, 2017
Lagers
44
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%
2017 142,758 142,758 - 1,633,155 8.74%
Lagers
Valuation Date
Notes:
Actuarial cost method Entry Age Normal and Modified Terminal Funding
Amortization method
Remaining amortization period Multiple bases from 13 to 22 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:
CITY OF PARKVILLE, MISSOURI
Required Supplementary Information
Schedule of Employer Contributions
For the Year Ended December 31, 2017
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.
None
Experienced-based table of rates that are specific to the type of eligibility condition
Methods and assumptions used to determine contributions rates:
February 28, 2017
The roll-forward of total pension liability from February 28, 2017 to December 31, 2017
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.
Level percentage of payroll amortization method is used to amortize the UAAL over a
close period of years. If the UAAL (excluding the UAAL associated with benefit
chagnes) is negative, then this amount is amortized over the greater of (i) the
remaining initial amortization period or (ii) 15 years.
45
Schedule 5
General Reserve
Fund Fund Totals
Assets:
Cash and investments 1,279,373$ 1,446,615$ 2,725,988$
Receivables:
Taxes 505,077 - 505,077
Accounts and other 53 - 53
Due from other governments 6,055 - 6,055
Prepaid, deposits and other assets 85,240 - 85,240
Total Assets 1,875,798$ 1,446,615$ 3,322,413$
Liabilities:
Accounts payable 57,907$ -$ 57,907$
Accrued payroll and benefits 89,041 - 89,041
Total Liabilities 146,948 - 146,948
Deferred inflows of resources:
Unavailable revenues 130,820 - 130,820
Fund balances:
Nonspendable:
Prepaid items 85,240 - 85,240
Committed:
Emergency reserve - 1,446,615 1,446,615
Unassigned 1,512,790 - 1,512,790
Total fund balances 1,598,030 1,446,615 3,044,645
Total liabilities, deferred inflows and
fund balances 1,875,798$ 1,446,615$ 3,322,413$
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - General Fund
December 31, 2017
46
Schedule 6
General Reserve
Fund Fund Eliminations Totals
Revenues:
Taxes 3,003,033$ -$ -$ 3,003,033$
Intergovernmental 84,579 - - 84,579
Charges for services 36,452 - - 36,452
Fines and forfeitures 174,730 - - 174,730
Licenses and permits 365,903 - - 365,903
Charges for sewer administration 150,000 - - 150,000
Interest 7,673 - - 7,673
Other 89,777 - - 89,777
Total Revenues 3,912,147 - - 3,912,147
Expenditures:
Current:
General government 1,203,229 - - 1,203,229
Public safety 1,318,291 - - 1,318,291
Public works 686,972 - - 686,972
Parks and recreation 416,899 - - 416,899
Community development 294,887 - - 294,887
3,920,278 - - 3,920,278
Excess of Revenues Over
(Under) Expenditures (8,131) - (8,131)
Other financing sources (uses):
Transfers in 225,000 317,500 (317,500) 225,000
Transfers out (317,500) (329,160) 317,500 (329,160)
Sale of capital assets 23,330 - - 23,330
Total Other Financing Sources (69,170) (11,660) - (80,830)
Change in fund balance (77,301) (11,660) - (88,961)
Fund Balances, Beginning of Year 1,675,331 1,458,275 - 3,133,606
Fund Balances, End of Year 1,598,030$ 1,446,615$ -$ 3,044,645$
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
General Fund
For the Year Ended December 31, 2017
47
Schedule 7
River Certificates of Brush Brink
Park Participation Creek Meyer Totals
Assets:
Restricted cash and investments 163,626$ 88,389$ 429,987$ 291,857$ 973,859$
Receivables:
Special assessments 738,910 - 3,033,584 - 3,772,494
Total Assets 902,536$ 88,389$ 3,463,571$ 291,857$ 4,746,353$
Liabilities:
Accounts payable -$ -$ -$ -$ -$
Total Liabilities - - - - -
Deferred inflows of resources:
Unavailable revenues 749,445 47,395 3,064,854 - 3,861,694
Fund balances:
Restricted:
Debt service 153,091 40,994 398,717 291,857 884,659
Total fund balances 153,091 40,994 398,717 291,857 884,659
Total liabilities, deferred inflows
and fund balances 902,536$ 88,389$ 3,463,571$ 291,857$ 4,746,353$
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - Debt Service Fund
December 31, 2017
48
Schedule 8
River Certificates of Brush Brink
Park Participation Creek Meyer Totals
Revenues:
Taxes -$ 373,761$ -$ -$ 373,761$
Special assessments 319,857 - 251,304 3,601 574,762
Interest 177 84 3,211 2,345 5,817
Total Revenues 320,034 373,845 254,515 5,946 954,340
Expenditures:
Debt service:
Principal 285,000 297,114 210,000 140,000 932,114
Interest and fiscal charges 33,699 72,468 185,938 147,888 439,993
318,699 369,582 395,938 287,888 1,372,107
Excess of Revenues Over
(Under) Expenditures 1,335 4,263 (141,423) (281,942) (417,767)
Other financing sources (uses):
Transfers in - - 46,486 282,674 329,160
Total Other Financing Sources - - 46,486 282,674 329,160
Change in fund balance 1,335 4,263 (94,937) 732 (88,607)
Fund Balances, Beginning of Year 151,756 36,731 493,654 291,125 973,266
Fund Balances, End of Year 153,091$ 40,994$ 398,717$ 291,857$ 884,659$
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Debt Service Fund
For the Year Ended December 31, 2017
49
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 1,248$ 68,020$ 51,806$ 40,420$ 38,071$ 12,003$ 12,468$ 9,435$ -$ 23,673$ 257,144$
Restricted cash and investments - - - - - - - - 578,878 - 578,878
Total Assets 1,248$ 68,020$ 51,806$ 40,420$ 38,071$ 12,003$ 12,468$ 9,435$ 578,878$ 23,673$ 836,022$
Liabilities and Fund Balances
Liabilities:
Accounts payable -$ 807$ -$ -$ -$ 288$ -$ -$ -$ -$ 1,095$
Total Liabilities - 807 - - - 288 - - - - 1,095
Fund balances
Nonspendable:
Fewson trust - - - - - - - - 571,765 - 571,765
Restricted:
Capital projects - - - - - - - - 7,113 7,113
Public safety - - - 40,420 38,071 11,715 - - - - 90,206
Parks and recreation - 67,213 51,806 - - - - - - - 119,019
Community development 1,248 - - - - - 12,468 9,435 - - 23,151
Assigned:
Capital projects - - - - - - - - - 23,673 23,673
Total fund balances 1,248 67,213 51,806 40,420 38,071 11,715 12,468 9,435 578,878 23,673 834,927
Total liabilities and fund balances 1,248$ 68,020$ 51,806$ 40,420$ 38,071$ 12,003$ 12,468$ 9,435$ 578,878$ 23,673$ 836,022$
Special Revenue Funds
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - Non-major Governmental Funds
December 31, 2017
50
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 1,319$ -$ -$ -$ -$ -$ 261,236$ -$ -$ -$ 262,555$
Intergovernmental - - - - 1,010 - 159,670 - - - 160,680
Charges for services - - - 1,402 2,402 - - - - - 3,804
Interest - - - - - - 12 10 4,436 - 4,458
Grants and donations - 27,869 6,074 - - 7,215 - - - 12,500 53,658
Other - 1,499 - - - - - - - - 1,499
Total Revenues 1,319 29,368 6,074 1,402 3,412 7,215 420,918 10 4,436 12,500 486,654
Expenditures:
Current:
Public safety - - - 1,746 6,713 6,075 - - - - 14,534
Parks and recreation - 5,648 4,230 - - - - - - - 9,878
Community development 1,350 - - - - - 420,901 - - - 422,251
1,350 5,648 4,230 1,746 6,713 6,075 420,901 - - - 446,663
Excess of Revenues
Over (Under) Expenditures (31) 23,720 1,844 (344) (3,301) 1,140 17 10 4,436 12,500 39,991
Other financing sources (uses):
Transfers in - - - - - - - - - - -
Total Other Financing
Sources (Uses) - - - - - - - - - - -
Change in fund balance (31) 23,720 1,844 (344) (3,301) 1,140 17 10 4,436 12,500 39,991
Fund Balances, Beginning of Year 1,279 43,493 49,962 40,764 41,372 10,575 12,451 9,425 574,442 11,173 794,936
Fund Balances, End of Year 1,248$ 67,213$ 51,806$ 40,420$ 38,071$ 11,715$ 12,468$ 9,435$ 578,878$ 23,673$ 834,927$
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, 2017
51
Schedule 11
Variance with
2017 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes -$ -$ -$ -$
Total Revenues - - - -
Total Expenditures - - - -
Excess of Revenues Over Expenditures - - - -
Other financing sources (uses):
Transfers in 317,500 317,500 317,500 -
Transfers out (348,224) (348,224) (329,160) 19,064
Total Other Financing Sources (Uses)(30,724) (30,724) (11,660) 19,064
Change in fund balance (30,724)$ (30,724)$ (11,660) 19,064$
Fund Balance, Beginning of Year 1,458,275
Fund Balance, End of Year 1,446,615$
CITY OF PARKVILLE, MISSOURI
For the Year Ended December 31, 2017
Fund Balance - Budget and Actual
Schedule of Revenues, Expenditures and Changes in
Reserve Fund
52
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 -$ -$ -$ 366,316$ 373,761$ 7,445$ -$ -$ -$ -$ -$ -$ 366,316$ 373,761$ 7,445$
Special assessments 320,994 319,857 (1,137) - - - 251,029 251,304 275 1,790 3,601 1,811 573,813 574,762 949
Interest 200 177 (23) - 84 84 6,500 3,211 (3,289) 4,750 2,345 (2,405) 11,450 5,817 (5,633)
Total Revenues 321,194 320,034 (1,160) 366,316 373,845 7,529 257,529 254,515 (3,014) 6,540 5,946 (594) 951,579 954,340 2,761
Expenditures:
Debt service:
Principal 285,000 285,000 - 297,114 297,114 - 210,000 210,000 - 140,000 140,000 - 932,114 932,114 -
Interest and fiscal charges 33,699 33,699 - 73,568 72,468 1,100 185,938 185,938 - 147,888 147,888 - 441,093 439,993 1,100
Total Expenditures 318,699 318,699 - 370,682 369,582 1,100 395,938 395,938 - 287,888 287,888 - 1,373,207 1,372,107 1,100
Excess of Revenues Over
(Under) Expenditures 2,495 1,335 (1,160) (4,366) 4,263 8,629 (138,409) (141,423) (3,014) (281,348) (281,942) (594) (421,628) (417,767) 3,861
Other financing sources (uses):
Transfers in - - - 4,366 - 4,366 69,658 46,486 23,172 278,661 282,674 4,013 352,685 329,160 (23,525)
Total Other Financing Sources (Uses) - - - 4,366 - 4,366 69,658 46,486 23,172 278,661 282,674 4,013 352,685 329,160 (23,525)
Change in fund balance 2,495$ 1,335 (1,160)$ -$ 4,263 12,995$ (68,751)$ (94,937) 20,158$ (2,687)$ 732 3,419$ (68,943)$ (88,607) (19,664)$
Fund Balance, (deficit) Beginning of Year 151,756 36,731 493,654 291,125 973,266
Fund Balance, End of Year 153,091$ 40,994$ 398,717$ 291,857$ 884,659$
CITY OF PARKVILLE, MISSOURI
Schedule of Revenues, Expenditures and Changes in
For the Year Ended December 31, 2017
Schedule 12
River Park Certificates of Participation Brush Creek Brink Meyer Totals
53
Schedule 13
Variance with
2017 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 1,500$ 1,500$ 1,319$ (181)$
Total Revenues 1,500 1,500 1,319 (181)
Expenditures:
Community development 2,582 2,582 1,350 1,232
Total Expenditures 2,582 2,582 1,350 1,232
Change in fund balance (1,082)$ (1,082)$ (31) 1,051$
Fund Balance, Beginning of Year 1,279
Fund Balance, End of Year 1,248$
CITY OF PARKVILLE, MISSOURI
Economic Development
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2017
54
Schedule 14
Variance with
2017 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental 7,500$ 7,500$ -$ (7,500)$
Grants and donations 1,750 1,750 27,869 26,119
Other 1,500 1,500 1,499 (1)
Total Revenues 10,750 10,750 29,368 18,618
Expenditures:
Parks and recreation 12,000 12,000 5,648 6,352
Total Expenditures 12,000 12,000 5,648 6,352
Change in fund balance (1,250)$ (1,250)$ 23,720 24,970$
Fund Balance, Beginning of Year 43,493
Fund Balance, End of Year 67,213$
CITY OF PARKVILLE, MISSOURI
Nature Sanctuary
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2017
55
Schedule 15
Variance with
2017 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Grants and donations 25,000$ 25,000$ 6,074$ (18,926)$
Total Revenues 25,000 25,000 6,074 (18,926)
Expenditures:
Parks and recreation 25,000 25,000 4,230 20,770
Total Expenditures 25,000 25,000 4,230 20,770
Excess of Revenues Over Expenditures - - 1,844 1,844
Other financing sources (uses):
Transfers out (25,000) (25,000) - 25,000
Total Other Financing Sources (Uses)(25,000) (25,000) - 25,000
Change in fund balance (25,000)$ (25,000)$ 1,844 26,844$
Fund Balance, Beginning of Year 49,962
Fund Balance, End of Year 51,806$
CITY OF PARKVILLE, MISSOURI
Parks Donations
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2017
56
Schedule 16
Variance with
2017 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Interest 2,779$ 2,779$ 4,436$ 1,657$
Total Revenues 2,779 2,779 4,436 1,657
Expenditures:
Capital outlay - - - -
Total Expenditures - - - -
Excess of Revenues Over Expenditures 2,779 2,779 4,436 1,657
Other financing sources (uses):
Transfers out (5,950) (5,950) - 5,950
Total Other Financing Sources (Uses)(5,950) (5,950) - 5,950
Change in fund balance (3,171)$ (3,171)$ 4,436 7,607$
Fund Balance, Beginning of Year 574,442
Fund Balance, End of Year 578,878$
For the Year Ended December 31, 2017
Fund Balance - Budget and Actual
Fewson Fund
CITY OF PARKVILLE, MISSOURI
Schedule of Revenues, Expenditures and Changes in
57
Schedule 17
Variance with
2017 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental 19,000$ 19,000$ -$ (19,000)$
Grants and donations 707,000 707,000 12,500 (694,500)
Total Revenues 726,000 726,000 12,500 (713,500)
Expenditures:
Capital outlay 41,000 41,000 - 41,000
Total Expenditures 41,000 41,000 - 41,000
Excess of Revenues Over Expenditures 685,000 685,000 12,500 (672,500)
Other financing sources (uses):
Transfers in 25,000 25,000 - (25,000)
Total Other Financing Sources (Uses)25,000 25,000 - (25,000)
Change in fund balance 710,000$ 710,000$ 12,500 (697,500)$
Fund Balance, Beginning of Year 11,173
Fund Balance, End of Year 23,673$
CITY OF PARKVILLE, MISSOURI
Capital Projects
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2017
58