HomeMy Public PortalAbout2018 Audit
City of Parkville, Missouri
Basic Financial Statements
With
Independent Auditor’s Report
For the Year Ended
December 31, 2018
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CITY OF PARKVILLE, MISSOURI
TABLE OF CONTENTS
Page
Independent Auditor’s Report 1-2
Management’s Discussion and Analysis 3-10
Basic Financial Statements:
Exhibit
Government-wide Financial Statements:
Statement of Net Position A 11
Statement of Activities B 12
Fund Financial Statements:
Balance Sheet – Governmental Funds C 13
Reconciliation of the Balance Sheet - Governmental Funds to
the Statement of Net Position 14
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds D 15
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances – Governmental Funds to the Statement of Activities 16
Statement of Net position – Proprietary Funds E 17
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds F 18
Statement of Cash Flows - Proprietary Funds G 19
Statement of Assets and Liabilities – Fiduciary Funds H 20
Notes to the Basic Financial Statements 21-41
Schedule Page
Required Supplementary Information:
Notes to Required Supplementary Information 42
Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – General Fund 1 43
Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – Transportation Sales Tax Fund 2 44
Schedule of Changes in Net Pension Liability and Related Ratios 3 45
Schedule of Employer Contributions 4 46
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 47
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – General Fund 6 48
Combining Balance Sheet – Debt Service Fund 7 49
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Debt Service Fund 8 50
Combining Balance Sheet – Non-major Governmental Funds 9 51
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Non-major Governmental Funds 10 52
Schedules of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual –
Reserve Fund 11 53
Debt Service Funds 12 54-55
Economic Development 13 56
Nature Sanctuary 14 57
Parks Donation 15 58
Fewson Fund 16 59
Capital Projects 17 60
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, 2018, 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,
2018, 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 June 12, 2019, 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
June 12, 2019
3
CITY OF PARKVILLE, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2018
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, 2018. 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 $14,069,129 (net position), an increase of
$4,687,237 over the prior year.
2. As of the close of the current year, the City’s governmental funds showed a combined
ending balance of $6,071,029, a decrease of $330,756 from the prior year.
Approximately 27.3 percent of the fund balance, $1,657,321 is unassigned and available
for spending at the City’s discretion.
3. The City’s total long-term debt decreased $1,350,022 from 2017. Debt connected with
the City’s government activities decreased $1,192,103 and debt connected with the
City’s business-type activities decreased $157,919.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements are comprised of three components;
government-wide financial statements, fund financial statements, and notes to the basic
financial statements. This report also contains required and other supplementary information in
addition to the basic financial statements.
Reporting the City as a Whole
Our analysis of the City as a whole begins on page 6. One of the most important questions
asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of
the year’s activities?” The Statement of Net Position and the Statement of Activities reports
information about the City as a whole and its activities in a way that helps answer this question.
These statements include all assets, deferred outflows, liabilities, and deferred inflows using the
accrual basis of accounting, which is similar to the accounting used by most private-sector
companies. All of the current year’s revenues and expenses are taken into account regardless
of when cash is received or paid.
4
The Statement of Net Position and the Statement of Activities report the City’s net position and
changes in it. You can think of the City’s net position—the difference between assets and
deferred outflows less liabilities and deferred inflows—as one way to measure the City’s
financial health, or financial position. Over time, increases or decreases in the City’s net position
are one indicator of whether its financial health is improving or deteriorating. You will need to
consider other non-financial factors, however, such as changes in the City’s property tax base
and the condition of the City’s roads, to assess the overall health of the City.
To aid in the understanding of the Statement of Activities, some additional explanation is given.
Of particular interest is that the format is significantly different than a typical Statement of
Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are listed in
the first column with revenues from that particular program reported to the right. The result is a
Net (Expense)/Revenue. The reason for this kind of format is to highlight the relative net
financial costs of each of the functions on the City's taxpayers. It also identifies how much each
function draws from the general revenues or if it is self-financing through fees and grants.
In the Statement of Net Position and the Statement of Activities, we divide the City into two
kinds of activities:
Governmental activities—Most of the City’s basic services are reported here, including general
government, public safety, public works, parks and recreation, and community development.
Taxes, (sales, property, and franchise) charges for services, fines, and state and federal grants
finance most of these activities.
Business-type activities—The City charges a fee to customers to help it cover all or most of the
cost of certain services it provides. The City’s sanitary sewer fund activities are reported here.
Reporting the City’s Most Significant Funds - Fund Financial Statements
The fund financial statements begin on page 13 and provide detailed information about the most
significant funds—not the City as a whole. Some funds are required to be established by State
law and by bond covenants. The City establishes other funds to help it control and manage
money for particular purposes. The City uses three types of funds to manage its resources:
governmental, proprietary, and agency funds. A fund is a fiscal entity with a set of self-balancing
accounts recording financial resources, together with all related liabilities and residual equities
and balances, and the changes therein. These accounting entities are separated for the
purpose of carrying on specific activities or attaining certain objectives in accordance with
regulations, restrictions or limitations.
5
Governmental funds—Most of the City’s basic services are reported in governmental funds,
which focus on how money flows into and out of those funds and the balances left at year-end
that are available for spending. These funds are reported using an accounting method called
modified accrual accounting, which measures cash and all other financial assets that can readily
be converted to cash. The governmental fund statements provide a detailed short-term view of
the City’s general government operations and the basic services it provides. Governmental fund
information helps you determine whether there are more or fewer financial resources that can
be spent in the near future to finance the City’s programs. We describe the relationship (or
differences) between governmental activities (reported in the Statement of Net Position and the
Statement of Activities) and governmental funds in the reconciliation following the fund financial
statements.
Proprietary funds—When the City charges customers for the services it provides, these
services are generally reported in proprietary funds. Proprietary funds are reported in the same
way that all activities are reported in the Statement of Net Position and the Statement of
Activities. In fact, the City’s sewer enterprise fund, is the same as the business-type activities
we report in the government-wide statements but provides more detail and additional
information, such as cash flows.
Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements, since the resources of those funds are not available to support the City’s
operations. The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also contain
certain required supplemental information that further explains and supports the information in
the financial statements. This report also contains other supplementary information that
provides certain combining and individual fund statements and schedules.
6
Government-Wide Financial Analysis
Our analysis below focuses on net position (Figure 1) and changes in net position (Figure 2) of
the governmental and business-type activities.
Figure 1 – Statement of Net Position
Activities Activities Total
2018 2017 2018 2017 2018 2017
Current and other assets 10,142,430$ 12,746,419$ 790,051$ 693,130$ 10,932,481$ 13,439,549$
Capital assets 13,279,415 10,420,203 4,431,204 3,325,554 17,710,619 13,745,757
Total assets 23,421,845 23,166,622 5,221,255 4,018,684 28,643,100 27,185,306
Deferred charge on refunding 24,226 27,193 - - 24,226 27,193
Deferred outflows - pension 167,839 190,033 - - 167,839 190,033
Total deferred outflows of resources 192,065 217,226 - - 192,065 217,226
Long-term debt 14,319,297 15,511,400 1,049,594 1,207,513 15,368,891 16,718,913
Other liabilities 813,631 907,035 92,613 110,049 906,244 1,017,084
Total liabilities 15,132,928 16,418,435 1,142,207 1,317,562 16,275,135 17,735,997
Deferred inflow - property taxes 179,393 178,215 - - 179,393 178,215
Deferred inflow - pension 161,508 106,428 - - 161,508 106,428
Total deferred intflows of resources 340,901 284,643 - - 340,901 284,643
Net position:
Net investment in capital assets 6,773,956 3,599,650 3,381,610 2,118,041 10,155,566 5,717,691
Restricted 2,777,302 2,051,443 166,177 162,166 2,943,479 2,213,609
Unrestricted 438,823 1,029,677 531,261 420,915 970,084 1,450,592
Total net position 9,990,081$ 6,680,770$ 4,079,048$ 2,701,122$ 14,069,129$ 9,381,892$
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
$14,069,129 at the close of the year ended December 31, 2018.
7
Figure 2 – Statement of Changes in Net Position
Activities Activities Total
Revenues:
Program revenues:
Charges for services 867,726$ 753,324$ 1,397,139$ 1,201,599$ 2,264,865$ 1,954,923$
Operating grants and contributions 536,832 268,266 - - 536,832 268,266
Capital grants and contributions 3,771,910 951,587 1,254,389 136,661 5,026,299 1,088,248
General revenues:
Property taxes 1,610,486 1,547,190 - - 1,610,486 1,547,190
Sales taxes 1,790,051 1,725,601 - - 1,790,051 1,725,601
Franchise taxes 885,571 832,472 - - 885,571 832,472
Intergovernmental activity taxes 187,802 159,670 - - 187,802 159,670
Other taxes 1,454 1,319 - - 1,454 1,319
Other 112,317 121,263 9,757 8,861 122,074 130,124
Total revenues 9,764,149 6,360,692 2,661,285 1,347,121 12,425,434 7,707,813
Expenses:
General government 1,235,154 1,312,725 - - 1,235,154 1,312,725
Public safety 1,323,997 1,473,865 - - 1,323,997 1,473,865
Public works 2,211,315 2,441,014 - - 2,211,315 2,441,014
Parks and recreation 484,632 453,053 - - 484,632 453,053
Community development 769,938 737,342 - - 769,938 737,342
Interest on long-term debt 429,802 474,178 - - 429,802 474,178
Sewer - - 1,283,359 1,325,580 1,283,359 1,325,580
Total expenses 6,454,838 6,892,177 1,283,359 1,325,580 7,738,197 8,217,757
Change in net position 3,309,311 (531,485) 1,377,926 21,541 4,687,237 (509,944)
Net position, beginning 6,680,770 7,212,255 2,701,122 2,679,581 9,381,892 9,891,836
Net position, ending 9,990,081$ 6,680,770$ 4,079,048$ 2,701,122$ 14,069,129$ 9,381,892$
20172018
Governmental Business-type
201820182017 2017
The City's net position increased $4,687,237 during the 2018 fiscal year. Of the total,
governmental activities net position increased $3,309,311 and business-type activities net
position increased by $1,377,926. Total 2018 governmental revenues increased $3,403,457
over 2017 primarily due to increases in contributed park land and infrastructure capital assets.
Total governmental activities expenses decreased $437,339. The decrease is primarily
attributable to the City’s mill and overlay program in 2017.
Total 2018 business-type activities revenues increased $1,314,164 over 2017 due to a rate
increase and contributed infrastructure capital assets. Total business-type expenses decreased
$42,221 primarily due less repair and maintenance expenses in 2018.
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 $6,071,029. Of this amount
$4,413,708 is non-spendable, restricted, committed or assigned for various purposes and
$1,657,321 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 $3,086,030. 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 41.4% of total general fund expenditures. Included in the general fund’s committed
fund balance is the City’s emergency reserve fund which totaled $1,338,079 at December 31,
2018.
The City’s fund balance of the general fund increased by $41,385 during the current fiscal year.
General Fund revenues increased by $337,264 over 2017 primarily related to increases in
taxes, administrative fees and public improvement fees. 2018 general fund expenditures,
excluding transfers out, were approximately $175,958 more than 2017. The increase is mostly
attributable to salaries and benefits, parks capital outlay, and transfers to the debt service fund.
At December 31, 2018, the transportation sales tax fund has an ending fund balance of
$1,135,327, all of which is restricted. The fund balance decreased $502,227 during the year
primarily due to engineering costs related to the Route 9 improvements expenditures and
transfers out to the debt service fund.
The debt service fund has a total fund balance of $851,538, all of which is restricted for the
payment of principal, interest and fees. The fund balance decreased by $33,121 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 $4,079,048 of which $531,261 is unrestricted. The sewer fund’s net position increased
by $1,377,926 from the prior year due to an increase in customer sewer rates and contributed
sewer infrastructure capital assets.
General Fund Actual to Budget Analysis
Actual revenues exceeded budgeted revenues by $319,705 primarily due to license and permits
exceeding budgeted revenues. Actual expenditures were $250,980 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 professional services.
9
Capital Asset and Debt Administration
Capital Assets
At the end of year, the City had $17,710,619 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 $3,964,862 from
last year as current year capital asset additions primarily related to contributed park land and
infrastructure assets exceeded depreciation expense.
City of Parkville, Missouri
Capital Assets (Net of Depreciation)
Additional information on the City’s capital assets can be found in Note 6 in the Notes to the
Basic Financial Statements.
2018 2017 2018 2017 2018 2017
Land 2,719,880$ 869,880$ 59,975$ 59,975$ 2,779,855$ 929,855$
Construction in progress - 121,611 - - - 121,611
Buildings and improvements 3,144,205 3,101,484 1,726,397 1,782,924 4,870,602 4,884,408
Equipment and vehicles 398,865 487,647 35,823 32,372 434,688 520,019
Infrastructure 7,016,465 5,839,581 2,609,009 1,450,283 9,625,474 7,289,864
Total 13,279,415$ 10,420,203$ 4,431,204$ 3,325,554$ 17,710,619$ 13,745,757$
Total
Governmental Business-Type
Activities Activities
Long-Term Obligations - At the end of the current fiscal year, the City had total long-term
obligations outstanding of $15,368,891.
City of Parkville, Missouri
Outstanding Debt
2018 2017 2018 2017 2018 2017
Limited General Obligation
Bonds (plus premium)9,348,232$ 10,028,329$ -$ -$ 9,348,232$ 10,028,329$
Certificates of Participation 2,751,453 3,086,608 - - 2,751,453 3,086,608
Loan agreement 2,159,600 2,353,700 - - 2,159,600 2,353,700
Compensated Absences 60,012 42,763 - - 60,012 42,763
Revenue Bonds (plus premium)- - 1,049,594 1,207,513 1,049,594 1,207,513
Total 14,319,297$ 15,511,400$ 1,049,594$ 1,207,513$ 15,368,891$ 16,718,913$
Total
Governmental Business-Type
Activities Activities
The governmental activities decreased $1,192,103 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 2019 revenues and expenditure budgets
at or near 2018 levels. The 2019 budget maintains essential services at current levels and
directs limited additional resources toward the 2019 Priorities as established by the Board of
Aldermen in August 2018. 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 focused on specific strategies in six goal
areas: Neighborhoods, Service Delivery, Long-Term Staffing Needs, Infrastructure, Economic
Development and Financial Stability. The City continues to experience steady growth in its
retail, residential, and commercial base that bodes well for future financial security. The Board
continued 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). In early 2019, the Board approved a
redevelopment agreement and economic development contract with a developer for a multi-
phased project known as “Creekside”, a proposed mixed use development located at the
southeast, southwest, and northwest quadrants of the intersection of Highway 45 and Interstate
435. 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, was
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 3,482,086$ 457,071$ 3,939,157$
Receivables:
Taxes 339,494 - 339,494
Special assessments 3,325,204 - 3,325,204
Accounts and other 84 153,278 153,362
Due from other governments 17,668 - 17,668
Prepaids, deposits, and other assets 90,630 40 90,670
Restricted assets:
Cash and investments 2,637,264 179,662 2,816,926
Land held for redevelopment 2,100,000 - 2,100,000
Capital assets:
Not being depreciated 869,880 59,975 929,855
Being depreciated, net of depreciation 12,409,535 4,371,229 16,780,764
Total assets 25,271,845 5,221,255 30,493,100
Deferred Outflows of Resources
Deferred charges on refunding 24,226 - 24,226
Deferred outflow - pension related activity 167,839 - 167,839
Total deferred outflows of resources 192,065 - 192,065
Liabilities
Accounts payable 196,806 52,375 249,181
Accrued payroll and benefits 91,381 1,409 92,790
Accrued interest 147,618 25,344 172,962
Payable from restricted assets:
Customer deposits - 13,485 13,485
Long term debt:
Net pension liability 377,826 - 377,826
Due within one year 1,417,141 162,919 1,580,060
Due in more than one year 12,902,156 886,675 13,788,831
Total liabilities 15,132,928 1,142,207 16,275,135
Deferred Inflows of Resources
Deferred inflow - property taxes 179,393 - 179,393
Deferred inflow - pension related activity 161,508 - 161,508
Total deferred inflows of resources 340,901 - 340,901
Net Position
Net investment in capital assets 6,773,956 3,381,610 10,155,566
Restricted :
Capital projects 1,144,294 - 1,144,294
Debt service 851,538 166,177 1,017,715
Public safety 93,103 - 93,103
Parks and recreation 91,308 - 91,308
Community development 23,441 - 23,441
Fewson trust (non-expendable)573,618 - 573,618
Unrestricted 438,823 531,261 970,084
Total net position 9,990,081$ 4,079,048$ 14,069,129$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Net Position
December 31, 2018
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:
Governmental activities
General government 1,235,154$ 674,319$ -$ -$ (560,835)$ -$ (560,835)$
Public safety 1,323,997 156,107 11,594 - (1,156,296) - (1,156,296)
Public works 2,211,315 - 226,030 1,869,614 (115,671) - (115,671)
Parks and recreation 484,632 37,300 257,606 1,902,296 1,712,570 - 1,712,570
Community development 769,938 - 41,602 - (728,336) - (728,336)
Interest on long-term debt 429,802 - - - (429,802) - (429,802)
Total governmental activities 6,454,838 867,726 536,832 3,771,910 (1,278,370) - (1,278,370)
Business-type activities
Sewer 1,283,359 1,397,139 - 1,254,389 - 1,368,169 1,368,169
Total business-type activities 1,283,359 1,397,139 - 1,254,389 - 1,368,169 1,368,169
Total primary government 7,738,197$ 2,264,865$ 536,832$ 5,026,299$ (1,278,370) 1,368,169 89,799
General revenues:
Taxes:
Property taxes, levied for general purpose 1,220,901 - 1,220,901
Property taxes, levied for debt service 389,585 - 389,585
Sales taxes 1,790,051 - 1,790,051
Franchise taxes 885,571 - 885,571
Intergovernmental activity taxes 187,802 - 187,802
Other taxes 1,454 - 1,454
Unrestricted investment earnings 20,989 5,137 26,126
Gain on disposal of capital assets 10,554 - 10,554
Miscellaneous 80,774 4,620 85,394
Total general revenues 4,587,681 9,757 4,597,438
Change in net position 3,309,311 1,377,926 4,687,237
Net position, beginning of year 6,680,770 2,701,122 9,381,892
Net position, end of year 9,990,081$ 4,079,048$ 14,069,129$
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, 2018
12
Ex
h
i
b
i
t
B
Exhibit C
Transportation Nonmjor Total
Sales Tax Debt Service Governmental Governmental
General Fund Fund Funds Funds
Assets
Cash and investments 3,057,455$ -$ -$ 424,631$ 3,482,086$
Receivables:
Taxes 263,865 75,629 - - 339,494
Special assessments - - 3,325,204 - 3,325,204
Accounts and other 84 - - - 84
Due from other governments 5,399 12,269 - - 17,668
Due from other funds - 27,483 - - 27,483
Prepaids, deposits and other assets 90,630 - - - 90,630
Restricted cash and investments - 1,099,152 955,527 582,585 2,637,264
Total Assets 3,417,433$ 1,214,533$ 4,280,731$ 1,007,216$ 9,919,913$
Liabilities
Accounts payable 108,094$ 79,206$ 424$ 9,082$ 196,806$
Accrued payroll and benefits 91,381 - - - 91,381
Due to other funds - - 27,483 - 27,483
Total Liabilities 199,475 79,206 27,907 9,082 315,670
Deferred inflows of resources
Unavailable revenues 131,928 - 3,401,286 - 3,533,214
Fund balances:
Nonspendable:
Prepaid items 90,630 - - - 90,630
Fewson trust - - - 573,618 573,618
Restricted:
Capital projects - 1,135,327 - 8,967 1,144,294
Debt service - - 851,538 - 851,538
General government - - - - -
Public safety - - - 93,103 93,103
Parks and recreation - - - 91,308 91,308
Community development - - - 23,441 23,441
Committed:
Emergency reserve 1,338,079 - - - 1,338,079
Assigned:
Capital projects - - - 207,697 207,697
Unassigned 1,657,321 - - - 1,657,321
Total fund balance 3,086,030 1,135,327 851,538 998,134 6,071,029
Total liabilities, deferred inflows
of resources and fund balances 3,417,433$ 1,214,533$ 4,280,731$ 1,007,216$ 9,919,913$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Balance Sheet - Governmental Funds
December 31, 2018
13
Exhibit C
Continued
Fund balances of governmental funds 6,071,029$
3,353,821
13,279,415
2,100,000
24,226
6,331
(147,618)
(377,826)
Long-term liabilities (14,319,297)
Net position of governmental activities 9,990,081$
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, 2018
Capital assets used in governmental activities are not financial resources and
therefore are not reported in the governmental fund statements.
14
Exhibit D
Transportation Nonmajor Total
Sales Tax Debt Service Governmental Governmental
General Fund Fund Funds Funds
Revenues:
Taxes 3,134,433$ 479,240$ 389,585$ 284,304$ 4,287,562$
Intergovernmental 134,090 521,904 - 426,221 1,082,215
Charges for services 37,300 - - 2,007 39,307
Fines and forfeitures 154,101 - - - 154,101
Licenses and permits 483,517 - - - 483,517
Special assessments - - 573,116 - 573,116
Grants and donations - - - 30,546 30,546
Charges for sewer administration 190,000 - - - 190,000
Interest 7,919 - 9,341 3,728 20,988
Other 108,051 35,880 - 1,815 145,746
Total Revenues 4,249,411 1,037,024 972,042 748,621 7,007,098
Expenditures:
Current:
General government 1,158,836 - - - 1,158,836
Public safety 1,315,429 - - 10,704 1,326,133
Public works 650,226 - - - 650,226
Parks and recreation 581,885 - - 9,317 591,202
Community development 292,984 - - 472,152 765,136
Capital outlay - 1,136,286 - 65,741 1,202,027
Debt service:
Principal - - 1,184,255 - 1,184,255
Interest and fiscal charges - - 462,409 - 462,409
Total Expenditures 3,999,360 1,136,286 1,646,664 557,914 7,340,224
Excess of Revenues Over (Under) Expenditures 250,051 (99,262) (674,622) 190,707 (333,126)
Other financing sources (uses):
Transfers in 215,000 12,500 641,501 25,000 894,001
Transfers out (426,036) (415,465) - (52,500) (894,001)
Sale of capital assets 2,370 - - - 2,370
Total Other Financing Sources (Uses)(208,666) (402,965) 641,501 (27,500) 2,370
Net change in fund balances 41,385 (502,227) (33,121) 163,207 (330,756)
Fund balances, beginning of year 3,044,645 1,637,554 884,659 834,927 6,401,785
Fund balances, end of year 3,086,030$ 1,135,327$ 851,538$ 998,134$ 6,071,029$
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, 2018
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 (330,756)$
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities the cost of those assets is
allocated over their estimated useful lives and reported as
depreciation expense.
Capital outlay costs in excess of capitalization threshold 255,821
Depreciation (490,157)
Donated capital assets 3,234,145
Disposal of capital assets (140,597)
Revenues in the statement of activities that do not provide current
financial resources are reported as deferred inflows in the
governmental funds.
Special assessments (460,478)
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 1,184,255
Changes in unamortized bond issuance premium and deferred
charges 22,130
Changes in accrued interest expense 10,477
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 24,471
Change in net position of governmental activities 3,309,311$
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, 2018
Governmental Funds to the Statement of Activities
16
Exhibit E
Sewer
Fund
Assets
Current assets:
Cash and investments 457,071$
Receivables, net:
Accounts and other 153,278
Prepaid expenses 40
Restricted cash and investments 179,662
Total current assets 790,051
Noncurrent assets:
59,975
4,371,229
Total noncurrent assets 4,431,204
Total assets 5,221,255
Liabilities
Current liabilities:
Accounts payable 52,375
Accrued liabilities 1,409
Current liabilities (payable from restricted assets):
Customer deposits 13,485
Interest payable 25,344
Current portion of bonds payable 162,919
Total current liabilities:255,532
Long-term liabilities:
Bonds payable 886,675
Total long-term liabilities:886,675
Total liabilities 1,142,207
Net position
Net investment in capital assets 3,381,610
Restricted net position for:
Debt service 166,177
Unrestricted 531,261
Total net position 4,079,048$
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, 2018
Capital assets:
Not being depreciated
17
Exhibit F
Sewer
Fund
Operating revenues:
Charges for services 1,397,139$
Other 4,620
Total operating revenues 1,401,759
Operating expenses:
Personnel services 23,096
Contractual services 330,193
Administrative fee 190,000
Depreciation 259,924
Repairs and maintenance 382,970
Other 48,573
Total operating expenses 1,234,756
Operating income 167,003
Nonoperating revenues (expenses):
Intergovernmental revenues 32,039
Interest income 5,137
Interest expense (48,603)
Total nonoperating revenues (expenses)(11,427)
Income before transfers
and capital contributions 155,576
Capital contributions 1,222,350
Change in net position 1,377,926
Total net position, beginning of year 2,701,122
Total net position, end of year 4,079,048$
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, 2018
18
Exhibit G
Sewer
Fund
Cash flows from operating activities:
Receipts from customers and others 1,396,194$
Payments to suppliers (966,231)
Payments to employees (22,289)
Net cash provided by operating activities 407,674
Cash flows provided by noncapital financing activities:
Intergovernmental revenues 32,039
Net cash flows provided by noncapital financing activities 32,039
Cash flows from investing activities:
Interest received 5,137
Net cash flows provided by investing activities 5,137
Cash flows from capital
and related financing activities:
Purchases of capital assets (143,224)
Interest and fiscal charges (60,272)
Principal payments on long-term debt (150,000)
Net cash flows provided by (used in) capital
and related financing activities (353,496)
Net change in cash and equivalents 91,354
Cash and equivalents, beginning of year 545,379
Cash and equivalents, end of year 636,733$
Cash and investments reported on the
Statement of Net Position
Cash and investments 457,071$
Restricted cash and investments 179,662
Total cash and investments 636,733$
Reconciliation of operating income to net cash
provided by operating activities:
Operating income 167,003$
Adjustments to reconcile operating income to
net cash provided by operations:
Depreciation and amortization 259,924
Changes in:
Receivables (5,565)
Prepaid expenses and deposits (2)
Accounts payable (14,493)
Accrued liabilities 807
Net cash provided by operating activities 407,674$
Noncash capital and financing activities:
Capital contributions 1,222,350$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2018
19
Exhibit H
Municipal Escrow Total
Court Fund Agency Funds
Assets
Cash and investments 21,133$ 59,462$ 80,595$
Total assets 21,133$ 59,462$ 80,595$
Liabilities
Due to others 21,133$ 59,462$ 80,595$
Total liabilities 21,133$ 59,462$ 80,595$
See accompanying notes to the basic financial statements
CITY OF PARKVILLE, MISSOURI
Statement of Assets and Liabilities
Fiduciary Funds
December 31, 2018
20
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
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, 2018
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 Sales Tax 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 others. 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, 2018
23
C. Basis of Accounting
Government-wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned or when all eligibility
requirements have been satisfied and expenses are recorded at the time liabilities are incurred,
regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives
(or receives) value without directly receiving (or giving) equal value in exchange, include property taxes,
grants, sales tax, and donations. Revenue from grants and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. This is a similar approach to that used in the
preparation of the proprietary fund financial statements but differs from the manner in which governmental
fund financial statements are prepared. Therefore, the governmental fund financial statements include a
reconciliation with brief explanations to better identify the relationship between the government-wide
statements and the statements for governmental funds.
Governmental Fund Financial Statements
All governmental funds are accounted for using the modified accrual basis of accounting and the current
financial resources measurement focus. Under this basis, revenues are recognized in the accounting
period in which they become measurable and available. Expenditures are recognized in the accounting
period in which the fund liability is incurred, if measurable.
Revenue Recognition
In applying the susceptible to accrual concept under the modified accrual basis, certain revenue sources
are deemed both measurable and available (collectible within the current year or within 60 days after
year-end to pay obligations of the current period). This includes property taxes, investment earnings and
state-levied locally shared taxes (including motor vehicle fees). The City records property tax receivables
at the time the lien attaches to the property. Reimbursements due for federally funded projects are
accrued as revenue at the time the expenditures are made, or when received in advance, deferred until
expenditures are made.
Other revenues, including licenses and permits, certain charges for services, and miscellaneous
revenues, are recorded as revenue when received in cash because they are generally not measurable
until actually received.
Expenditure Recognition
The measurement focus of governmental fund accounting is on decreases in net financial resources
(expenditures) rather than expenses. Most expenditures are measurable and are recorded when the
related fund liability is incurred. However, principal and interest on general long-term debt, which have not
matured are recognized when due. Allocations of cost, such as depreciation and amortization, are not
recognized in the governmental funds.
Proprietary Fund Financial Statements
The economic resources measurement focus and the accrual basis of accounting are utilized by the
proprietary funds. Under this basis of accounting, revenues are recognized when earned and expenses
are recorded when liabilities are incurred. All assets and liabilities (whether current or noncurrent)
associated with a proprietary fund’s activities are included on its statement of net position and statement
of activities. Operating revenues and expenses for proprietary funds are those that result from providing
services and producing and delivering goods and/or services. All other revenues and expenses are
considered nonoperating.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
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 collectible by the City for the purpose of
repaying certain Special Assessment debt held by the City. The amount collectible 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, 2018
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:
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 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, the change in actual and projected experience in calculating the pension
liability, and the difference between actual and projected earnings in calculating the net pension asset.
The second item, unavailable revenue, is reported in both the statement of net position and in the
governmental funds balance sheet. The governmental funds report unavailable revenues related to taxes,
special assessments, 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.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
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 $190,000 for the year ended December 31, 2018.
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 maintain a general fund balance of 15% of general fund appropriations for the succeeding
fiscal year. Amounts over 15% may be transferred into the emergency reserve fund.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
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.
O. Expenditures in excess of Budget
In violation of the budget ordinance, actual expenditures and transfers out exceeded budgeted
appropriations in the Reserve Fund by $8,375, Lease Purchase Agreement Fund by $27,843, Parks
Donation Fund by $13,334, and the Capital Projects Fund by $13,241.
(2) Cash and Investments
A reconciliation of cash and investments as shown on the government-wide statement of net position
and statement of fiduciary net position is as follows:
Cash on hand 331$
Demand deposits 5,580,120
Certificates of deposits 346,284
US treasuries and agency securities 51,665
Restricted cash equivalents held in trust 858,278
6,836,678$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
28
Government-wide Fiduciary funds
statement statement of
of net position assets and liabilities Total
Cash and investments 3,939,157$ 80,595$ 4,019,752$
Restricted cash and investments 2,816,926 - 2,816,926
6,756,083$ 80,595$ 6,836,678$
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, 2018, 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, 2018.
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, 2018:
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.
Level 1
Investment
Federal Home Loan Bank 51,665$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
29
(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, 2017, was $222,921,724.
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 $ 0.4653
General Revenue-
Temporary 0.1759
$ 0.6412 Tax revenues for the year consisted of the following:
Property Sales Franchise Other
Taxes Taxes Taxes Taxes Total
Major governmental funds:
General $ 1,220,901 $ 1,027,961 $ 885,571 $ - 3,134,433$
Transportation Sales Tax - 479,240 - - 479,240
Debt Service 389,585 - - - 389,585
Nonmajor funds - 282,850 - 1,454 284,304
$ 1,610,486 $ 1,790,051 $ 885,571 $ 1,454 $ 4,287,562
Taxes receivable represent property, sales, and franchise taxes, including interest and penalties, reduced
by an appropriate allowance for uncollectable taxes. Taxes receivable consisted of the following at
December 31, 2018:
Sales Franchise
Taxes Taxes Total
Major governmental funds:
General $ 157,072 $ 106,793 263,865$
Transportation Sales Tax 75,629 - 75,629
$ 232,701 $ 106,793 $ 339,494
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
30
(4) Intergovernmental Revenues/Receivables
Intergovernmental revenues for the year ended December 31 ,2018 consisted of the following:
General Transportation Nonmajor
Fund Sales Tax Funds Total
Grants - Federal, State and Local $ 59,534 $ - $ 238,419 $ 297,953
State: -
Motor vehicle sales tax 49,567 - - 49,567
Motor vehicle fuel tax - 149,072 - 149,072
Motor vehicle license
and title transfer fees 24,989 - - 24,989
Local:
Special road district - 141,814 - 141,814
County transportation - 231,017 - 231,017
Economic activity taxes - - 187,802 187,802
Total intergovernmental revenues $134,090 $ 521,903 $ 426,221 $ 1,082,214
Amounts due from other governments at December 31, 2018, were as follows:
General Transportation
Fund Sales Tax Total
Motor vehicle sales tax $ 2,028 $ - 2,028$
Motor vehicle fuel tax - 12,269 12,269
Motor vehicle license
and title transfer fees 3,371 - 3,371
Total due from other governments $ 5,399 $ 12,269 $ 17,668
(5) Interfund Activity
Transfers between funds for the year ended December 31, 2018 were as follows:
Nonmajor
Transportation Governmental
General Sales Tax Funds Total
Transfers In:
Governmental activities:
General Fund -$ 200,000$ 15,000$ 215,000$
Debt Service Fund 426,036 215,465 - 641,501
Transportation Sales Tax - - 12,500 12,500
Nonmajor Governmental Funds - - 25,000 25,000
Total 426,036$ 415,465$ 52,500$ 894,001$
Transfers Out:
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
31
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) to use unrestricted revenues collected in a fund
used to finance various programs and debt service payments accounted for in other funds in accordance with
budgetary authorizations. Any transfers within the governmental funds or within the proprietary funds have been
eliminated in the government-wide statement of activities.
Interfund receivable and payable balances as of December 31, 2018 were as follows:
Transportation Sales
Tax Fund
Due from:
Debt Service Fund 27,483$
Due to:
Amounts due to the Transportation Sales Tax Fund represent advances to meet debt service requirements.
(6) Capital Assets
A summary of the changes in capital assets for the year ended December 31, 2018 is as follows:
December 31,December 31,
2017 Additions Deletions 2018
Governmental activities:
Capital assets, not being depreciated
Land 869,880$ 1,850,000$ -$ 2,719,880$
Construction in progress 121,611 - 121,611 -
Total capital assets, not being depreciated 991,491 1,850,000 121,611 2,719,880
Capital assets, being depreciated
Buildings and improvements 4,522,406 160,373 - 4,682,779
Equipment and vehicles 2,320,902 95,448 27,122 2,389,228
Infrastructure 7,407,688 1,384,145 - 8,791,833
Total capital assets being depreciated 14,250,996 1,639,966 27,122 15,863,840
Less accumulated depreciation for:
Buildings and improvements 1,420,922 117,652 - 1,538,574
Equipment and vehicles 1,833,255 165,244 8,136 1,990,363
Infrastructure 1,568,107 207,261 - 1,775,368
Total accumulated depreciation 4,822,284 490,157 8,136 5,304,305
Total capital assets being depreciated, net 9,428,712 10,559,535
Governmental activities capital assets, net 10,420,203$ 13,279,415$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
32
December 31,December 31,
2017 Additions Deletions 2018
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 5,376,934 126,800 - 5,503,734
Equipment and vehicles 304,235 16,424 - 320,659
Infrastructure 2,487,178 1,222,350 - 3,709,528
Total capital assets being depreciated 8,168,347 1,365,574 - 9,533,921
Less accumulated depreciation for:
Buildings and improvements 3,594,010 183,327 - 3,777,337
Equipment and vehicles 271,863 12,973 - 284,836
Infrastructure 1,036,895 63,624 - 1,100,519
Total accumulated depreciation 4,902,768 259,924 - 5,162,692
Total capital assets being depreciated, net 3,265,579 4,371,229
Business-type activities capital assets, net 3,325,554$ 4,431,204$
Depreciation expense was charged to functions and programs of the primary government as follows:
Governmental activities:
General government 113,023$
Public safety 34,750
Public works 290,916
Parks and recreation 41,391
Community development 10,077
Total depreciation expense for
governmental activities 490,157$
Business-type activities:
Sewer 259,924$
Total depreciation expense for
business-type activities 259,924$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
33
(7) Long Term Debt
A summary of the changes in long term debt for the year ended December 31, 2018 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 915,000$ -$ 295,000$ 620,000$ 305,000$
Series 2014A - Brush Creek 5,165,000 - 215,000 4,950,000 220,000
Series 2014B - Brink Meyer 3,535,000 - 145,000 3,390,000 150,000
Premium on issuance 413,329 - 25,097 388,232 25,097
10,028,329 - 680,097 9,348,232 700,097
Certificates of participation 3,086,608 - 335,155 2,751,453 354,132
Loan agreement 2,353,700 - 194,100 2,159,600 302,900
* Compensated absences 42,763 17,249 - 60,012 60,012
Total Governmental Activities 15,511,400 17,249 1,209,352 14,319,297 1,417,141
Business-type Activites:
Revenue bonds 1,160,000 - 150,000 1,010,000 155,000
Premium on issuance 47,513 - 7,919 39,594 7,919
Total Business-type Activites 1,207,513 - 157,919 1,049,594 162,919
Total Primary Government 16,718,913$ 17,249$ 1,367,271$ 15,368,891$ 1,580,060$
* Primarily liquidated by the General fund in prior years.
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, 2018 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% 620,000$
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% 4,950,000
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% 3,390,000
Total limited general obligation bonds 8,960,000$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
34
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,
2017 Additions Deletions 2018
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. During
the year ended December 31, 2018, the City transferred $426,036 from the General Fund to the Debt
Service Fund to cover the shortfall of special assessments necessary to meet the 2014A and 2014B debt
service requirements.
Subsequent to December 31, 2018, the City entered into an agreement to sell approximately 70 acres of
land held for development to a developer for a total purchase price of $4,800,000. The agreement
provides for the acquisition of the property in two phases. The initial portion (Phase I) of the property to
be acquired is approximately 35 acres. The second portion (Phase II) of the property to be acquired is
approximately 35 acres.
The purchase price for Phase I is $2,400,000 and is payable with $400,000 due at the Phase I closing
and the execution of a Promissory Note of $2,000,000 delivered by the Meadows at Creekside
Community Improvement District (the CID). The Promissory Note is payable solely from the proceeds of
special assessments levied by the CID and secured by a second deed of trust.
The purchase price for Phase II is $2,400,000 and is payable with $400,000 due at the Phase II closing
and the execution of a Promissory Note delivered by the CID. The Promissory Note is payable solely from
the CID special assessments and secured by a second deed of trust. The buyer’s obligation to purchase
and the City’s obligation to sell the Phase II property is subject to certain contingencies related to the
commencement of Phase I construction that must occur by January 1, 2020.
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, 2018, is
$2,751,453.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
35
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, 2018, is
$2,159,600.
Portions of the proceeds 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 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. The Series 2004A (SRF) Sewage System 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, 2018, is
$1,010,000.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
36
E. Future Debt Service Requirements
Year Ending
December 31 Principal Interest Principal Interest Principal Interest
2019 305,000$ 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 - - 250,000 142,838 165,000 118,213
2024-2028 - - 1,375,000 586,681 920,000 501,931
2029-2033 - - 1,635,000 317,975 1,130,000 283,225
2034 - - 765,000 15,300 550,000 13,750
620,000$ 20,312$ 4,950,000$ 1,705,618$ 3,390,000$ 1,437,896$
Principal Interest Principal Interest Principal Interest
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 420,474 23,327 - - 835,474 284,378
2024-2028 831,135 26,985 - - 3,126,135 1,115,597
2029-2033 - - - - 2,765,000 601,200
2034 - - - - 1,315,000 29,050
Totals 2,751,453$ 231,328$ 2,159,600$ 80,463$ 13,871,053$ 3,475,617$
Principal Interest
2019 155,000$ 54,438$
2020 160,000 46,619
2021 160,000 38,350
2022 165,000 29,950
2023 170,000 21,625
2024-2028 200,000 18,425
Totals 1,010,000$ 209,407$
Business-type Activities
Sewage System Revenue
Bonds Series 2004A
Limited General Obligation
Refunding Bonds - Series
2010 (River Park)
Governmental Activities
Limited General Obligation
Bonds - Series 2014A
(Brush Creek)
Limited General Obligation
Bonds - Series 2014
(Brink Meyer)
Governmental Activities
Certificates of Participation
Series 2015 Loan Agreement Total
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
37
(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,
2018, expenses incurred under these agreements were $30,505 (Kansas City, Missouri) and $20,145
(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.
2018 Valuation
Benefit Multiplier: 2% 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 9 11 20
Active employees 20 11 31
31 24 55
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
38
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 8.3% (General) and 10.3% (Police) of annual covered payroll.
E. Net Pension Liability
The City’s net pension liability was measured as of June 30, 2018, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of February 28, 2018.
F. Actuarial Assumptions
The total pension liability in the February 28, 2018 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, 2018 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 a weighted average of the geometric real rates of return for each major asset class rollup 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, 2018
39
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)
1,911,323$ 1,414,503$ 496,820$
148,593 - 148,593
142,885 - 142,885
(16,202) - (16,202)
- 155,363 (155,363)
- 68,390 (68,390)
- 180,098 (180,098)
(27,488) (27,488) -
- (3,246) 3,246
- (6,335) 6,335
Net changes 247,788 366,782 (118,994)
2,159,111$ 1,781,285$ 377,826$
Difference between expected and actual
Increase (Decrease)
Balances at beginning of year
Changes for the year:
Service Cost
Interest
Balances at end of year
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds
Administrative expense
Other changes (net transfer)
I. Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the Net Pension Liability of the employer, calculated using the discount rate of
7.25%, 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 2,542,951$ 2,159,111$ 1,850,661$
Plan Fiduciary Net Position (1,781,285) (1,781,285) (1,781,285)
Net Pension Liability 761,666$ 377,826$ 69,376$
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
40
J. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended December 31, 2018, the City recognized LAGERS pension expense of $117,560
($55,512 (General) and $62,048 (Police)). The City reported deferred outflows related to LAGERS
pension from the following sources:
General Police Total
Deferred Outflows of Resources:
Assumption changes 30,558$ 18,833$ 49,391$
Difference in experience 14,560 22,214 36,774
Contributions subsequent to the
measurement date* 43,927 37,747 81,674
Total 89,045$ 78,794$ 167,839$
Deferred Inflows of Resources:
Assumption changes 8,488$ -$ 8,488$
Deficient investment returns 28,887 20,766 49,653
Difference in experience 64,482 38,885 103,367
Total 101,857$ 59,651$ 161,508$
*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, 2019.
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
2019 (6,736)$ 827$ (5,909)$
2020 (12,073) (3,473) (15,546)
2021 (20,500) (10,379) (30,879)
2022 (14,014) (5,789) (19,803)
2023 (3,989) (268) (4,257)
Thereafter 573 478 1,051
Total (56,739)$ (18,604)$ (75,343)$
K. Payable to the Pension Plan
At December 31, 2018, the City paid all outstanding contributions to the LAGERS pension plan.
CITY OF PARKVILLE, MISSOURI
Notes to the Basic Financial Statements
December 31, 2018
41
(10) Commitments and Contingencies
A. Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
The City is a member of the Midwest Public Risk (MPR), formerly Mid-America Regional Council
Insurance Trust, a not-for-profit corporation consisting of local governments and political subdivisions.
MPR was formed as a public entity risk retention pool to cover health and dental, workers’ compensation,
and property and casualty claims for its members. MPR has been established as assessable pools and
accounting records are maintained for each line of coverage on a policy-year basis. The City pays annual
premiums to MPR for all coverage. The agreement with MPR provides that MPR will be self-sustaining
through member premiums. MPR has the authority to assess members for any deficiencies of revenues
under expenses for any single plan year. Likewise, MPR has the authority to declare refunds to members
for the excess of revenues over expenses relating to any single plan year. The City continues to carry
commercial insurance for employee life insurance and short-term disability. The amount of settlements
has not exceeded the City’s insurance coverage in any of the past three fiscal years.
B. Investments-Trust Fund
The City was the recipient of funds from a resident’s estate during the calendar year 2002. The funds
were previously held by a trustee for the benefit of the City. In 2011, the City took over management of
the fund and by Resolution No. 12-01-13, the Board of Aldermen enacted a policy restricting the use of
the fund to follow the intentions of the original donor of the fund. The nature of the fund is that the
principal of the contributions is to remain intact. One-half of the interest earnings are to be added to the
principal and the remaining one-half of annual earnings may be used to fund City capital projects. At
December 31, 2018, the fund had $8,967 net appreciation on assets available for expenditure which is
reported as restricted fund balance and $573,618 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 June 12, 2019, the date the financial statements were
available to be issued. Other than discussed under Note 7 A, no other subsequent events were identified
that required adjustment to or disclosure in the financial statements.
CITY OF PARKVILLE, MISSOURI
Notes to Required Supplementary Information
December 31, 2018
42
(1) Budgetary Data
The Board of Alderman adopted annual operating budgets for all funds except for the Veterans Memorial,
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 no budget amendment during the year ended December 31, 2018. 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 3,072,121$ 3,072,121$ 3,134,433$ 62,312$
Intergovernmental 81,250 81,250 134,090 52,840
Charges for services 39,700 39,700 37,300 (2,400)
Fines and forfeitures 180,000 180,000 154,101 (25,899)
Licenses and permits 297,270 297,270 483,517 186,247
Charges for sewer 190,000 190,000 190,000 -
Interest 8,160 8,160 7,919 (241)
Other 61,205 61,205 108,051 46,846
Total Revenues 3,929,706 3,929,706 4,249,411 319,705
Expenditures:
Current:
General government 1,294,202 1,294,202 1,158,836 135,366
Public safety 1,494,633 1,494,633 1,315,429 179,204
Public works 686,322 686,322 650,226 36,096
Parks and recreation 455,322 455,322 581,885 (126,563)
Community development 319,861 319,861 292,984 26,877
Total Expenditures 4,250,340 4,250,340 3,999,360 250,980
Excess of Revenues Over
(Under) Expenditures (320,634) (320,634) 250,051 570,685
Other Financing Sources (Uses):
Transfers in 200,000 200,000 215,000 15,000
Transfers out (317,500) (317,500) (317,500) -
Sale of capital assets 5,000 5,000 2,370 (2,630)
Total Other Financing Sources (Uses)(112,500) (112,500) (100,130) 12,370
Change in fund balance (433,134)$ (433,134)$ 149,921 583,055$
Fund Balances, Beginning of Year 1,598,030
Fund Balances, End of Year 1,747,951$
Note: GAAP is the budgetary basis used to prepare this schedule
2018
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, 2018
43
Schedule 2
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 462,000$ 462,000$ 479,240$ 17,240$
Intergovernmental 517,874 517,874 521,904 4,030
Other 5,304 5,304 35,880 30,576
Total Revenues 985,178 985,178 1,037,024 51,846
Expenditures:
Current:
Capital outlay 1,970,141 1,970,141 1,136,286 833,855
Total Expenditures 1,970,141 1,970,141 1,136,286 833,855
Excess of Revenues Over
(Under) Expenditures (984,963) (984,963) (99,262) 885,701
Other Financing Sources (Uses):
Transfers in - - 12,500 12,500
Transfers out (415,465) (415,465) (415,465) -
Proceeds from lease 1,231,777 1,231,777 - (1,231,777)
Total Other Financing Sources (Uses)816,312 816,312 (402,965) (1,219,277)
Change in fund balance (168,651)$ (168,651)$ (502,227) (333,576)$
Fund Balances, Beginning of Year 1,637,554
Fund Balances, End of Year 1,135,327$
Note: GAAP is the budgetary basis used to prepare this schedule
2018
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, 2018
44
Schedule 3
2018 2017 2016 2015
Total Pension Liability
Service costs 148,593$ 119,807$ 116,946$ 104,714$
Interest on total pension liability 142,885 107,562 93,722 69,352
Changes in benefit terms - 252,150 - 226,297
Difference between expected and
actual experience of the total pension liability (16,202) 19,236 (66,469) (47,700)
Changes of assumptions - (12,160) 79,853 -
Benefit payments and refunds (27,488) (18,639) (31,360) (14,002)
Net change in total pension liability 247,788 467,956 192,692 338,661
Total pension liability - beginning of year 1,911,323 1,443,367 1,250,675 912,014
Total pension liability - end of year (a)2,159,111$ 1,911,323$ 1,443,367$ 1,250,675$
Plan Fiduciary Net Position
Contributions - employer 155,363$ 112,455$ 93,771$ 73,690$
Contributions - employee 68,390 62,865 61,441 60,880
Net investment income 180,098 141,948 63 17,409
Benefit payments and refunds (27,488) (18,639) (31,360) (14,002)
Administrative expenses (3,246) (3,626) (3,451) (3,356)
Other (net transfer) (6,335) 1,806 (3,952) 38,126
Net change in plan fiduciary net position 366,782 296,809 116,512 172,747
Plan fiduciary net positon - beginning of year 1,414,503 1,117,694 1,001,182 828,435
Plan fiduciary net positon - end of year (b) $ 1,781,285 $ 1,414,503 $ 1,117,694 $ 1,001,182
Net pension liability (a) - (b) $ 377,826 $ 496,820 $ 325,673 $ 249,493
Plan net position as a percentage of the
total pension liability 82.50% 74.01%77.44% 80.05%
Covered employee payroll 1,567,178 1,457,585 1,415,099 1,414,512
Net pension liability/(asset) as a
percentage of covered payroll 24.11% 34.09%23.01% 17.64%
GASB 68 requires presentation of ten years. As of December 31, 2018, only four 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, 2018
Lagers
45
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 57,366 57,366 - 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%
2018 159,791 159,791 - 1,767,037 9.04%
Lagers
Valuation Date
Notes:
Actuarial cost method Entry Age Normal and Modified Terminal Funding
Amortization method
Remaining amortization period Multiple bases from 15 to 21 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, 2018
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, 2018
The roll-forward of total pension liability from February 28, 2018 to June 30, 2018
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.
46
Schedule 5
General Reserve
Fund Fund Totals
Assets:
Cash and investments 1,719,376$ 1,338,079$ 3,057,455$
Receivables:
Taxes 263,865 - 263,865
Accounts and other 84 - 84
Due from other governments 5,399 - 5,399
Prepaid, deposits and other assets 90,630 - 90,630
Total Assets 2,079,354$ 1,338,079$ 3,417,433$
Liabilities:
Accounts payable 108,094$ -$ 108,094$
Accrued payroll and benefits 91,381 - 91,381
Total Liabilities 199,475 - 199,475
Deferred inflows of resources:
Unavailable revenues 131,928 - 131,928
Fund balances:
Nonspendable:
Prepaid items 90,630 - 90,630
Committed:
Emergency reserve - 1,338,079 1,338,079
Unassigned 1,657,321 - 1,657,321
Total fund balances 1,747,951 1,338,079 3,086,030
Total liabilities, deferred inflows
of resources and fund balances 2,079,354$ 1,338,079$ 3,417,433$
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - General Fund
December 31, 2018
47
Schedule 6
General Reserve
Fund Fund Eliminations Totals
Revenues:
Taxes 3,134,433$ -$ -$ 3,134,433$
Intergovernmental 134,090 - - 134,090
Charges for services 37,300 - - 37,300
Fines and forfeitures 154,101 - - 154,101
Licenses and permits 483,517 - - 483,517
Charges for sewer administration 190,000 - - 190,000
Interest 7,919 - - 7,919
Other 108,051 - - 108,051
Total Revenues 4,249,411 - - 4,249,411
Expenditures:
Current:
General government 1,158,836 - - 1,158,836
Public safety 1,315,429 - - 1,315,429
Public works 650,226 - - 650,226
Parks and recreation 581,885 - - 581,885
Community development 292,984 - - 292,984
3,999,360 - - 3,999,360
Excess of Revenues Over
(Under) Expenditures 250,051 - - 250,051
Other financing sources (uses):
Transfers in 215,000 317,500 (317,500) 215,000
Transfers out (317,500) (426,036) 317,500 (426,036)
Sale of capital assets 2,370 - - 2,370
Total Other Financing Sources (100,130) (108,536) - (208,666)
Change in fund balance 149,921 (108,536) - 41,385
Fund Balances, Beginning of Year 1,598,030 1,446,615 - 3,044,645
Fund Balances, End of Year 1,747,951$ 1,338,079$ -$ 3,086,030$
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
General Fund
For the Year Ended December 31, 2018
48
Schedule 7
River Certificates of Brush Brink Lease Purchase
Park Participation Creek Meyer Agreement Totals
Assets:
Restricted cash and investments 175,548$ 77,566$ 409,993$ 292,420$ -$ 955,527$
Receivables:
Special assessments 434,674 - 2,890,530 - - 3,325,204
Total Assets 610,222$ 77,566$ 3,300,523$ 292,420$ -$ 4,280,731$
Liabilities:
Accounts payable 424$ -$ -$ -$ -$ 424$
Due to other funds - - - - 27,483 27,483
Total Liabilities 424 - - - 27,483 27,907
Deferred inflows of resources:
Unavailable revenues 454,445 47,465 2,899,376 - - 3,401,286
Fund balances:
Restricted:
Debt service 155,353 30,101 401,147 292,420 (27,483) 851,538
Total fund balances (deficit)155,353 30,101 401,147 292,420 (27,483) 851,538
Total liabilities, deferred inflows
and fund balances (deficit)610,222$ 77,566$ 3,300,523$ 292,420$ -$ 4,280,731$
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - Debt Service Fund
December 31, 2018
49
Schedule 8
River Certificates of Brush Brink Lease Purchase
Park Participation Creek Meyer Agreement Totals
Revenues:
Taxes -$ 389,585$ -$ -$ -$ 389,585$
Special assessments 322,080 - 251,036 - - 573,116
Interest 181 63 5,261 3,836 - 9,341
Total Revenues 322,261 389,648 256,297 3,836 - 972,042
Expenditures:
Debt service:
Principal 295,000 335,155 215,000 145,000 194,100 1,184,255
Interest and fiscal charges 24,999 65,386 179,563 143,613 48,848 462,409
319,999 400,541 394,563 288,613 242,948 1,646,664
Excess of Revenues Over
(Under) Expenditures 2,262 (10,893) (138,266) (284,777) (242,948) (674,622)
Other financing sources (uses):
Transfers in - - 140,696 285,340 215,465 641,501
Total Other Financing Sources - - 140,696 285,340 215,465 641,501
Change in fund balance 2,262 (10,893) 2,430 563 (27,483) (33,121)
Fund Balances, Beginning of Year 153,091 40,994 398,717 291,857 - 884,659
Fund Balances (deficit), End of Year 155,353$ 30,101$ 401,147$ 292,420$ (27,483)$ 851,538$
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Debt Service Fund
For the Year Ended December 31, 2018
50
Schedule 9
Permanent Capital
Fund Project Fund
Court Police Market
Economic Nature Parks Veterans Recoupment Training Fees Police TIF Place Fewson Capital
Development Sanctuary Donations Memorial Fees LET Shop Development Development Project Projects Totals
Assets
Cash and investments 1,516$ 73,980$ 12,299$ 6,700$ 40,285$ 40,212$ 20,017$ 12,481$ 9,444$ -$ 207,697$ 424,631$
Restricted cash and investments - - - - - - - - - 582,585 - 582,585
Total Assets 1,516$ 73,980$ 12,299$ 6,700$ 40,285$ 40,212$ 20,017$ 12,481$ 9,444$ 582,585$ 207,697$ 1,007,216$
Liabilities and Fund Balances
Liabilities:
Accounts payable -$ -$ 1,671$ -$ -$ -$ 7,411$ -$ -$ -$ -$ 9,082$
Total Liabilities - - 1,671 - - - 7,411 - - - - 9,082
Fund balances
Nonspendable:
Fewson trust - - - - - - - - - 573,618 - 573,618
Restricted:
Capital projects - - - - - - - - - 8,967 8,967
Public safety - - - - 40,285 40,212 12,606 - - - - 93,103
Parks and recreation - 73,980 10,628 6,700 - - - - - - - 91,308
Community development 1,516 - - - - - - 12,481 9,444 - - 23,441
Assigned:
Capital projects - - - - - - - - - - 207,697 207,697
Total fund balances 1,516 73,980 10,628 6,700 40,285 40,212 12,606 12,481 9,444 582,585 207,697 998,134
Total liabilities and fund balances 1,516$ 73,980$ 12,299$ 6,700$ 40,285$ 40,212$ 20,017$ 12,481$ 9,444$ 582,585$ 207,697$ 1,007,216$
Special Revenue Funds
CITY OF PARKVILLE, MISSOURI
Combining Balance Sheet - Non-major Governmental Funds
December 31, 2018
51
Schedule 10
Permanent Capital
Fund Project Fund
Court Police Market
Economic Nature Parks Veterans Recoupment Training Fees Police TIF Place Fewson Capital
Development Sanctuary Donations Memorial Fees LET Shop Development Development Project Projects Totals
Revenues:
Taxes 1,453$ -$ -$ -$ -$ -$ -$ 282,851$ -$ -$ -$ 284,304$
Intergovernmental - - - - - 1,154 - 187,802 - - 237,265 426,221
Charges for services - - - - 704 1,303 - - - - - 2,007
Interest - - - - - - - 12 9 3,707 - 3,728
Grants and donations - 6,450 2,156 11,500 - - 10,440 - - - - 30,546
Other 315 1,500 - - - - - - - - - 1,815
Total Revenues 1,768 7,950 2,156 11,500 704 2,457 10,440 470,665 9 3,707 237,265 748,621
Expenditures:
Current:
Public safety - - - - 839 316 9,549 - - - - 10,704
Parks and recreation - 1,183 3,334 4,800 - - - - - - - 9,317
Community development 1,500 - - - - - - 470,652 - - - 472,152
Capital outlay - - - - - - - - - - 65,741 65,741
1,500 1,183 3,334 4,800 839 316 9,549 470,652 - - 557,914
Excess of Revenues
Over (Under) Expenditures 268 6,767 (1,178) 6,700 (135) 2,141 891 13 9 3,707 237,265 190,707
Other financing sources (uses):
Transfers in - - - - - - - - - - 25,000 25,000
Transfers out - - (40,000) - - - - - - - (12,500) (52,500)
Total Other Financing
Sources (Uses)- - (40,000) - - - - - - - 12,500 (27,500)
Change in fund balance 268 6,767 (41,178) 6,700 (135) 2,141 891 13 9 3,707 249,765 163,207
Fund Balances, Beginning of Year 1,248 67,213 51,806 - 40,420 38,071 11,715 12,468 9,435 578,878 23,673 834,927
Fund Balances, End of Year 1,516$ 73,980$ 10,628$ 6,700$ 40,285$ 40,212$ 12,606$ 12,481$ 9,444$ 582,585$ 273,438$ 998,134$
Special Revenue Funds
CITY OF PARKVILLE, MISSOURI
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Non-major Governmental Funds
For the Year Ended December 31, 2018
52
Schedule 11
Variance with
2018 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 (417,661) (417,661) (426,036) (8,375)
Total Other Financing Sources (Uses)(100,161) (100,161) (108,536) (8,375)
Change in fund balance (100,161)$ (100,161)$ (108,536) (8,375)$
Fund Balance, Beginning of Year 1,446,615
Fund Balance, End of Year 1,338,079$
CITY OF PARKVILLE, MISSOURI
For the Year Ended December 31, 2018
Fund Balance - Budget and Actual
Schedule of Revenues, Expenditures and Changes in
Reserve Fund
53
Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance Positive
(Negative)
Revenues:
Taxes -$ -$ -$ 386,237$ 389,585$ 3,348$ -$ -$ -$
Special assessments 320,994 322,080 1,086 - - - 251,303 251,036 (267)
Interest 170 181 11 110 63 (47) 7,650 5,261 (2,389)
Total Revenues 321,164 322,261 1,097 386,347 389,648 3,301 258,953 256,297 (2,656)
Expenditures:
Debt service:
Principal 295,000 295,000 - 335,155 335,155 - 215,000 215,000 -
Interest and fiscal charges 24,999 24,999 - 66,486 65,386 1,100 179,563 179,563 -
Total Expenditures 319,999 319,999 - 401,641 400,541 1,100 394,563 394,563 -
Excess of Revenues Over
(Under) Expenditures 1,165 2,262 1,097 (15,294) (10,893) 4,401 (135,610) (138,266) (2,656)
Other financing sources (uses):
Transfers in - - - 4,366 - 4,366 135,609 140,696 (5,087)
Total Other Financing Sources (Uses)- - - 4,366 - 4,366 135,609 140,696 (5,087)
Change in fund balance 1,165$ 2,262 1,097$ (10,928)$ (10,893) 8,767$ (1)$ 2,430 (7,743)$
Fund Balance, Beginning of Year 153,091 40,994 398,717
Fund Balance (deficit), End of Year 155,353$ 30,101$ 401,147$
(Continued on Next Page)
Schedule 12
River Park Certificates of Participation Brush Creek
CITY OF PARKVILLE, MISSOURI
Schedule of Revenues, Expenditures and Changes in
For the Year Ended December 31, 2018
Fund Balance - Budget and Actual
Debt Service Funds
54
Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance
Positive
(Negative) Budget Actual
Variance
Positive
(Negative)
Revenues:
Taxes -$ -$ -$ -$ -$ -$ 386,237$ 389,585$ 3,348$
Special assessments 1,810 - (1,810) - - - 574,107 573,116 (991)
Interest 4,750 3,836 (914) - - - 12,680 9,341 (3,339)
Total Revenues 6,560 3,836 (2,724) - - - 973,024 972,042 (982)
Expenditures:
Debt service:
Principal 145,000 145,000 - 194,100 194,100 - 1,184,255 1,184,255 -
Interest and fiscal charges 143,613 143,613 - 21,365 48,848 (27,483) 436,026 462,409 (26,383)
Total Expenditures 288,613 288,613 - 215,465 242,948 (27,483) 1,620,281 1,646,664 (26,383)
Excess of Revenues Over
(Under) Expenditures (282,053) (284,777) (2,724) (215,465) (242,948) (27,483) (647,257) (674,622) (27,365)
Other financing sources (uses):
Transfers in 282,052 285,340 3,288 215,314 215,465 151 637,341 641,501 4,160
Total Other Financing Sources (Uses)282,052 285,340 3,288 215,314 215,465 151 637,341 641,501 4,160
Change in fund balance (1)$ 563 564$ (151)$ (27,483) (27,332)$ (9,916)$ (33,121) (23,205)$
Fund Balance, Beginning of Year 291,857 - 884,659
Fund Balance (deficit), End of Year 292,420$ (27,483)$ 851,538$
Brink Meyer Lease Purchase Agreement Totals
Schedule 12
CITY OF PARKVILLE, MISSOURI
Schedule of Revenues, Expenditures and Changes in
For the Year Ended December 31, 2018
Fund Balance - Budget and Actual
Debt Service Funds
55
Schedule 13
Variance with
2018 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Taxes 1,500$ 1,500$ 1,453$ (47)$
Other - - 315 315
Total Revenues 1,500 1,500 1,768 268
Expenditures:
Community development 2,000 2,000 1,500 500
Total Expenditures 2,000 2,000 1,500 500
Change in fund balance (500)$ (500)$ 268 768$
Fund Balance, Beginning of Year 1,248
Fund Balance, End of Year 1,516$
CITY OF PARKVILLE, MISSOURI
Economic Development
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2018
56
Schedule 14
Variance with
2018 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental 9,250$ 9,250$ -$ (9,250)$
Grants and donations 1,750 1,750 6,450 4,700
Other 1,500 1,500 1,500 -
Total Revenues 12,500 12,500 7,950 (4,550)
Expenditures:
Parks and recreation 12,500 12,500 1,183 11,317
Total Expenditures 12,500 12,500 1,183 11,317
Change in fund balance -$ -$ 6,767 6,767$
Fund Balance, Beginning of Year 67,213
Fund Balance, End of Year 73,980$
CITY OF PARKVILLE, MISSOURI
Nature Sanctuary
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2018
57
Schedule 15
Variance with
2018 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Grants and donations 2,500$ 2,500$ 2,156$ (344)$
Total Revenues 2,500 2,500 2,156 (344)
Expenditures:
Parks and recreation 5,000 5,000 3,334 1,666
Total Expenditures 5,000 5,000 3,334 1,666
Excess of Revenues Over Expenditures (2,500) (2,500) (1,178) 1,322
Other financing sources (uses):
Transfers out (25,000) (25,000) (40,000) (15,000)
Total Other Financing Sources (Uses)(25,000) (25,000) (40,000) (15,000)
Change in fund balance (27,500)$ (27,500)$ (41,178) (13,678)$
Fund Balance, Beginning of Year 51,806
Fund Balance, End of Year 10,628$
CITY OF PARKVILLE, MISSOURI
Parks Donations
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2018
58
Schedule 16
Variance with
2018 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Interest 6,079$ 6,079$ 3,707$ (2,372)$
Total Revenues 6,079 6,079 3,707 (2,372)
Expenditures:
Capital outlay - - - -
Total Expenditures - - - -
Excess of Revenues Over Expenditures 6,079 6,079 3,707 (2,372)
Other financing sources (uses):
Transfers out (7,516) (7,516) - 7,516
Total Other Financing Sources (Uses)(7,516) (7,516) - 7,516
Change in fund balance (1,437)$ (1,437)$ 3,707 5,144$
Fund Balance, Beginning of Year 578,878
Fund Balance, End of Year 582,585$
For the Year Ended December 31, 2018
Fund Balance - Budget and Actual
Fewson Fund
CITY OF PARKVILLE, MISSOURI
Schedule of Revenues, Expenditures and Changes in
59
Schedule 17
Variance with
2018 Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental 40,000$ 40,000$ 237,265$ 197,265$
Total Revenues 40,000 40,000 237,265 197,265
Expenditures:
Capital outlay 65,000 65,000 65,741 (741)
Total Expenditures 65,000 65,000 65,741 (741)
Excess of Revenues Over Expenditures (25,000) (25,000) 171,524 196,524
Other financing sources (uses):
Transfers in 25,000 25,000 25,000 -
Transfers out - - (12,500) (12,500)
Total Other Financing Sources (Uses)25,000 25,000 12,500 (12,500)
Change in fund balance -$ -$ 184,024 184,024$
Fund Balance, Beginning of Year 23,673
Fund Balance, End of Year 207,697$
CITY OF PARKVILLE, MISSOURI
Capital Projects
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
For the Year Ended December 31, 2018
60