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HomeMy Public PortalAbout2017 Audit City of Parkville, Missouri Basic Financial Statements With Independent Auditor’s Report For the Year Ended December 31, 2017 i 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