HomeMy Public PortalAbout2022 Annual Financial ReportCity of Jefferson
Missouri
Annual Financial Report
For the fiscal year ended October 31, 2022
CITY OF JEFFERSON,
MISSOURI
ANNUAL FINANCIAL REPORT
For The Year Ended October 31, 2022
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CITY OF JEFFERSON,
MISSOURI
ANNUAL FINANCIAL REPORT
For The Fiscal Year Ended October 31, 2022
Prepared By: Department of Finance
3
CITY OF JEFFERSON, MISSOURI
ANNUAL FINANCIAL REPORT
YEAR ENDED OCTOBER 31, 2022
TABLE OF CONTENTS Page
FINANCIAL SECTION 6
Independent Auditors' Report 7-10
Management’s Discussion and Analysis (MD&A)11-24
Basic Financial Statements 25
Statement of Net Position 26
Statement of Activities 27
Balance Sheet - Governmental Funds 28
Reconciliation of the Balance Sheet –
Governmental Funds to the Government-wide Statement of Net Position 29
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 30
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds to the Government-wide Statement of Activities 31
Statement of Net Position – Proprietary Funds 32
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds 33
Statement of Cash Flows – Proprietary Funds 34
Statement of Net Position – Fiduciary Funds 35
Statement of Changes in Net Position – Fiduciary Funds 36
Notes to the Financial Statements 37-64
Required Supplementary Information (RSI)65
Employees Retirement System – LAGERS –
Schedule of Changes in Net Pension Liability and Related Ratios – All Divisions Combined 66
Employees Retirement System – LAGERS –
Schedule of Contributions and Notes to the Schedule of Contributions 67
Postemployment Benefits Other than Pensions – Schedule of Changes in Total OPEB Liability and Related Ratios 68
Budgetary Comparison Schedule – General Fund 69
Budgetary Comparison Schedule – Parks Fund 70
Notes to the Required Supplementary Information (RSI)71
Supplemental Financial Statements and Schedules 72
Budgetary Comparison Schhedule - Capital Improvement Tax Funds 73
Budgetary Comparison Schhedule - Public Safety Tax Fund 74
Non-major Governmental Funds 75
Combining Balance Sheet – Non-major Governmental Funds 76
Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-major Governmental Funds 77
Budgetary Comparison Schedule – Non-major Governmental Funds 78-80
Non-major Enterprise Funds 81
Combining Statement of Net Position – Non-major Proprietary Funds 82
Combining Statement of Revenues, Expenses and Changes in Net Position – Non-major Proprietary Funds 83
Combining Statement of Cash Flows – Non-major Proprietary Funds 84
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TABLE OF CONTENTS-(Continued) Page
Internal Service Funds 85
Combining Statement of Net Position – Internal Service Funds 86
Combining Statements of Revenues, Expenses and Changes in Net Position – Internal Service Funds 87
Combining Statement of Cash Flows – Internal Service Funds 88
FEDERAL AWARDS SECTION 89
Schedule of Expenditures of Federal Awards 90-91
Notes to Schedule of Expenditures of Federal Awards 92
Independent Auditors' Report on Internal Control over Financial Reporting
and on Compliance and Other Matters based on an Audit of Financial Statements
performed in Accordance with Government Auditing Standards 93-95
Independent Auditors' Report on Compliance for each Major Program
and on Internal Control required by the Compliance Uniform Guidance 96-99
Schedule of Findings and Questioned Costs 100-103
5
FINANCIAL
SECTION
6
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and
Members of the City Council
City of Jefferson, Missouri
Report on the Audit of the Financial Statements
Opinions
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 Jefferson, Missouri as of and for the year ended October 31, 2022, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in
the table of contents.
In our opinion, based on our audit and the report of other auditors, the financial statements referred
to above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the City of Jefferson, Missouri as of October 31, 2022, 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.
We did not audit the financial statement of the discretely presented component unit, the Jefferson
City Convention and Visitor’s Bureau, which represents 2.6 percent, 3.3 percent, and .10 percent,
respectively, of the assets, net position, and revenue of the governmental activities of the City of
Jefferson, Missouri. Those statements were audited by other auditors whose report has been
furnished to us, and our opinion, insofar as it relates to the amounts included for the Jefferson City
Convention and Visitors Bureau, is based solely on the report of the other auditors.
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Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City of Jefferson,
Missouri and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City of
Jefferson, Missouri’s ability to continue as a going concern for twelve months beyond the financial
statement date, including any currently known information that may raise substantial doubt shortly
thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
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Obtain an understanding of internal control relevant to the audit 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 City of Jefferson, Missouri’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City of Jefferson, Missouri’s ability to
continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, pension information, post-employment information, and
budgetary comparison schedules, as listed in the table of contents, be presented to supplement the
basic financial statements. Such information is the responsibility of management and, 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Jefferson, Missouri’s basic financial statements. The supplemental
financial statements and schedules as listed in the table of contents and the schedule of expenditures
of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial
statements. The information, except for the budget information, has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
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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 supplemental financial statements and
schedules, except for the budget information, as listed in the table contents and the schedule of
expenditures of federal awards are fairly stated, in all material respects, in relation to the basic
financial statements as a whole. The budget information has not been subjected to the auditing
procedures applied in the audit of the financial statements and accordingly, we do not express an
opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 5,
2023, on our consideration of the City of Jefferson, Missouri internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is solely 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 of Jefferson, Missouri 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 City of Jefferson, Missouri’s
internal control over financial reporting and compliance.
EVERS & COMPANY, CPA’s, L.L.C.
Jefferson City, Missouri
June 5, 2023
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City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
As management of the City of Jefferson, we offer readers of the City of Jefferson’s financial statements this narrative overview and
analysis of the financial activities of the City of Jefferson for the fiscal year ended October 31, 2022. We encourage readers to
consider the information presented here in conjunction with the financial statements and related footnotes.
Financial Highlights
The assets and deferred outflows of the City of Jefferson exceeded its liabilities and deferred inflows of resources as of October 31,
2022 by $252,682,309 (net position). Of this amount, $28,924,471 (unrestricted net position) may be used to meet the
government’s ongoing obligations to citizens and creditors. The unrestricted net position in the governmental activities was
$17,773,523 and $11,150,948 in the business-type activities.
The City of Jefferson’s total net position increased by $10,804,840 of which $8,503,215 was from an increase in net position in the
governmental activities and $2,301,625 was from an increase in net position in the business-type activities. The key factors were a
decrease of $1,005,428 in Net Investment in Capital Assets in the governmental activities; an increase of $945,111 in Restricted for
Parks in the governmental activities; an increase of $181,692 in Restricted for Capital Projects in the governmental activities; an
increase of $1,464,605 in Restricted for Public Safety in the governmental activities; an increase of $6,917,235 in Unrestricted Net
Position in the governmental activities; an increase of $1,984,380 in Net Investment in Capital Assets in the business-type
activities; a decrease of $1,359,188 in Revenue Bond Debt Service requirements in the business-type activities; an increase of
$737,409 in Restricted for Pensions/OPEB in the business-type activities; and an increase of $3,689,878 in Unrestricted Net Position
in the business-type activities.
As of the close of fiscal year 2022, the City of Jefferson’s governmental funds reported combined ending fund balances of
$32,023,468 – an increase of $3,072,401 in comparison with the prior year. The amount available for disbursement at the
government’s discretion is $8,195,657 since that is the government funds combined unassigned fund balance.
At the end of the current fiscal year, the unassigned fund balance for the general fund was $8,195,657 or 22.2% of total general
fund expenditures, or 21.7% of total general fund expenditures and transfers out.
The City of Jefferson’s total debt decreased by $5,121,141. This was due to the retirement of Sewerage System revenue bond
principal in the amount of $4,496,000; the retirement of Parks special obligation bond principal in the $295,000; and the payment of
lease principal for the fire apparatus in the amount of $330,141.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Jefferson’s basic financial statements. The City of
Jefferson’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the
basic financial statements.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad
overview of the City of Jefferson’s finances in a manner similar to a private-sector business.
The statement of net position presents information on the difference between (assets plus the deferred outflow of resources) and
(liabilities plus the deferred inflows of resources) as net position for the City of Jefferson. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Jefferson is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal
year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing
of related cash flows. Thus, revenue and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g., uncollected taxes, grants receivable and earned but unused vacation and sick leave).
Both of the government-wide financial statements distinguish functions of the City of Jefferson that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion
of their costs through user fees and charges (business-type activities). The governmental activities of the City of Jefferson include
general government, public safety, community development, and cultural and recreation. The business-type activities of the City of
Jefferson include Wastewater, Airport, Parking and Transit.
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City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
The government-wide financial statements include not only the City of Jefferson itself (known as the primary government), but also a
legal separate non-profit organization, Jefferson City Convention and Visitors Bureau for which the City of Jefferson is financially
accountable. Financial information for this component unit is reported separately from the financial information presented for the
primary government itself. The government-wide financial statements can be found in the Basic Financial Statements in the Financial
Section of this report. A separate audited financial report of the JCCVB is publicly available by written request from the Jefferson
City Convention and Visitors Bureau, Inc., 700 E. Capitol Avenue, Jefferson City, MO 65101.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City of Jefferson, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Jefferson can be divided
into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities
in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable and
nonspendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-
term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in
the fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Jefferson maintains ten individual governmental funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund,
parks fund, capital improvement tax fund, and public safety tax fund, which are considered to be major funds. Data from the other six
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial
statements can be found in the Basic Financial Statements in the Financial Section of this report.
The City of Jefferson adopts an annual appropriated budget for all of its funds. A budgetary comparison schedule has been provided
for all governmental funds to demonstrate compliance with the budget.
Proprietary funds. The City of Jefferson maintains two different types of proprietary funds. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial statements. The City of Jefferson uses enterprise
funds to account for its wastewater, airport, parking and transit operations. Information is presented separately in the statement of net
position, proprietary funds, and the statement of revenues, expenses, and changes in net position, proprietary funds, for the wastewater
and transit funds, which are considered to be the major funds. Data from the other two enterprise funds are combined into a single,
aggregated presentation. Individual fund data for each of these nonmajor enterprise funds is provided in the form of combining
statements elsewhere in this report.
The other type of proprietary funds are internal service funds for workers compensation self-insurance and self-funded health
insurance which are combined into a single aggregated presentation in the proprietary fund financial statements. Individual fund data
for the internal service funds are provided in the form of combining statements in the combining and individual fund statements and
schedules section of this report.
The basic proprietary fund financial statements can be found in the Basic Financial Statements in the Financial Section of this report.
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 statement because the resources of those funds are not available to support
the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City maintains one
custodial fund for Tax Increment Financing.
The basic custodial fund financial statements can be found in the Basic Financial Statements in the Financial Section of this report.
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City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Notes to the financial statements. The notes provide additional information that is essential for a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial statements can be found in the Basic
Financial Statements in the Financial Section of this report.
Other information. The combining statements referred to earlier in connection with nonmajor governmental funds, enterprise funds,
and internal service funds can be found in the Supplemental Financial Statements and Schedules in the Financial Section of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of
Jefferson, assets and deferred outflows exceeded liabilities and deferred inflows of resources by $252,682,309 which increased
$10,804,840 over the prior year. The change in net position in the governmental activities was $8,503,215 and $2,301,625 in
business-type activities. The key factors were a decrease of $1,005,428 in Net Investment in Capital Assets in the governmental
activities; an increase of $945,111 in Restricted for Parks in the governmental activities; an increase of $181,692 in Restricted for
Capital Projects in the governmental activities; an increase of $1,464,605 in Restricted for Public Safety in the governmental
activities; an increase of $6,917,235 in Unrestricted Net Position in the governmental activities; an increase of $1,984,380 in Net
Investment in Capital Assets in the business-type activities; a decrease of $1,359,188 in Revenue Bond Debt Service requirements in
the business-type activities; an increase of $737,409 in Restricted for Pensions/OPEB in the business-type activities; and an increase
of $3,689,878 in Unrestricted Net Position in the business-type activities. The total net position in the Wastewater Fund (business-
type activity) increased by $1,928,766 due in part to an increase in sewer charges for services ($495,024) to offset future bond
requirements.
Long-term liabilities decrease of $4,653,377 was due primarily to a decrease of $633,475 in Long Term Debt in the governmental
activities; an increase of $295,742 in Compensated Absences in the governmental activities; a decrease of $295,165 in Net OPEB
Liability in the governmental activities; a decrease of $64,481 in Net OPEB Liability in the business-type activities; and a decrease
of $4,618,103 in Revenue Bonds Payable in the business-type activities. Other liabilities decrease of $1,377,577 was due primarily
to a decrease in accounts payable of $1,028,310 in governmental activities; a decrease in retainage payable of $158,683 in
governmental activities; an increase in accrued liabilities of $326,290 in governmental activities; an increase in deposits of $15,556
in governmental activities; an increase in due to component unit of $44,311 in governmental activities; a decrease in accounts
payable of $417,048 in business-type activities; an increase in retainage payable of $55,006 in business-type activities; an increase
in accrued liabilities of $20,691 in business-type activities; an increase of $25,303 in deposits in business-type activities; a decrease
of $101,963 in unearned revenue in business-type activities; a decrease of $58,594 in accrued interest payable in business-type
activities.
By far the largest portion of the City of Jefferson’s net position (79.1%) reflects its net investment in capital assets (e.g., land,
infrastructure, buildings, machinery and equipment). The City of Jefferson uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City of Jefferson’s investment in capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City of Jefferson’s net position (9.4%) represents resources that are subject to external restrictions on how
they may be used. The remaining balance of unrestricted net position ($28,924,471) may be used to meet the government’s ongoing
obligations to citizens and creditors.
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City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
2022 2021 2022 2021 2022 2021
Current and other assets $ 58,614,486 $ 61,559,882 $ 20,908,041 $ 21,214,873 $ 79,522,527 $ 82,774,755
Capital assets 144,303,269 145,849,919 101,999,166 104,521,677 246,302,435 250,371,596
Total assets 202,917,755 207,409,801 122,907,207 125,736,550 325,824,962 333,146,351
Deferred Outflows 5,152,430 5,406,908 307,347 439,250 5,459,777 5,846,158
Current liabilities 3,712,653 4,602,728 1,466,981 1,943,586 5,179,634 6,546,314
Long-term liabilities 14,645,351 14,610,352 38,309,476 42,997,852 52,954,827 57,608,204
Total liabilities 18,358,004 19,213,080 39,776,457 44,941,438 58,134,461 64,154,518
Deferred Inflows 16,570,818 28,965,481 3,897,151 3,995,041 20,467,969 32,960,522
Net position:
Net investment in
capital assets 135,441,695 136,447,123 64,549,335 62,564,955 199,991,030 199,012,078
Restricted 19,926,145 17,334,737 3,840,663 7,213,296 23,766,808 24,548,033
Unrestricted 17,773,523 10,856,288 11,150,948 7,461,070 28,924,471 18,317,358
Total net position $ 173,141,363 $ 164,638,148 $ 79,540,946 $ 77,239,321 $ 252,682,309 $ 241,877,469
Governmental Activities Business-type Activities Total
City of Jefferson's Net Position
There was an increase of $10,607,113 in unrestricted net position due primarily to a decrease of $1,005,428 in Net Investment in
Capital Assets in the governmental activities; an increase of $945,111 in Restricted for Parks in the governmental activities; an
increase of $181,692 in Restricted for Capital Projects in the governmental activities; an increase of $1,464,605 in Restricted for
Public Safety in the governmental activities; an increase of $1,984,380 in Net Investment in Capital Assets in the business-type
activities; a decrease of $1,359,188 in Revenue Bond Debt Service Requirements in the business-type activities; and an increase of
$737,409 in Restricted for Pensions/OPEB in the business-type activities.
At the end of the current fiscal year, the City of Jefferson is able to report positive balances in all three categories of total net position,
for the government as a whole, as well as for its separate governmental and business type activities. The same situation held true for
the prior fiscal year.
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City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
2022 2021 2022 2021 2022 2021
Revenues:
Program Revenues:
Charges for services $ 7,831,820 $ 7,406,557 $ 13,304,932 $ 12,684,448 $ 21,136,752 $ 20,091,005
Operating grants and contributions 7,415,089 7,016,643 2,571,354 1,496,501 9,986,443 8,513,144
Capital grants and contributions 1,955,224 6,301,791 856,438 641,808 2,811,662 6,943,599
General Revenues:
Sales and other user taxes 30,489,452 26,584,704 - - 30,489,452 26,584,704
Property taxes 5,790,117 5,767,561 - - 5,790,117 5,767,561
Franchise and utility license taxes 6,466,327 6,272,140 - - 6,466,327 6,272,140
Other 1,510,762 2,549,057 575,015 477,953 2,085,777 3,027,010
Total revenues 61,458,791 61,898,453 17,307,739 15,300,710 78,766,530 77,199,163
Expenses:
General government 10,112,376 7,367,653 - - 10,112,376 7,367,653
Public safety 19,816,169 16,262,844 - - 19,816,169 16,262,844
Community development 14,241,768 14,609,472 - - 14,241,768 14,609,472
Cultural and recreation 7,835,503 5,617,349 - - 7,835,503 5,617,349
Wastewater - - 10,649,964 10,173,684 10,649,964 10,173,684
Airport - - 1,351,167 1,585,881 1,351,167 1,585,881
Parking - - 836,352 766,514 836,352 766,514
Transit - - 2,881,247 2,474,424 2,881,247 2,474,424
Interest on long-term debt 237,143 253,699 - - 237,143 253,699
Total expenses 52,242,959 44,111,017 15,718,730 15,000,503 67,961,689 59,111,520
Increase (decrease) in net position
before transfers 9,215,832 17,787,436 1,589,009 300,207 10,804,841 18,087,643
Transfers (712,617) (937,208) 712,617 937,208 - -
Increase (decrease) in net position 8,503,215 16,850,228 2,301,626 1,237,415 10,804,841 18,087,643
Net position - November 1 164,638,148 147,787,920 77,239,320 76,235,734 241,877,468 224,023,654
Prior Period Adjustments - - - (233,828) - (233,828)
Net position - November 1, as restated 164,638,148 147,787,920 77,239,320 76,001,906 241,877,468 223,789,826
Net position - October 31 $ 173,141,363 $ 164,638,148 $ 79,540,946 $ 77,239,321 $ 252,682,309 $ 241,877,469
City of Jefferson's Changes in Net Position
Governmental Activities Business-type Activities Total
Governmental activities. Governmental activities increased the City of Jefferson’s net position by $8,503,215 compared to the
increase of $16,850,228 last fiscal year. Key elements of the City of Jefferson’s governmental activities were an increase in expenses
and transfers of $7,907,351 and a decrease of revenue of $439,662 from the prior fiscal year. The revenue decrease was primarily due
to an increase of $425,263 in charges for services in the governmental activities; an increase of $398,446 in operating grants and
contributions in the governmental activities; a decrease of $4,346,567 in capital grants and contributions in the governmental
15
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
activities, which was primarily due to the receipt of local grant funds from the Parks Foundation for the Bicentennial Bridge project
and receipt of City/County Joint Project funds, in the prior fiscal year but not in the current fiscal year; an increase of $3,904,748 in
sales and other user taxes in the governmental activities; an increase of $22,556 in property taxes in the governmental activities; an
increase of $194,187 in franchise and utility license taxes in the governmental activities; and a decrease of $1,038,295 in other
revenues in the governmental activities.
16
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Business-type activities: Business-type activities increased the City of Jefferson’s net position by $2,301,625 compared to the
increase of $1,003,587 last fiscal year. Key elements of this increase are as follows:
Charges for services for business-type activities increased by a total of $620,484 (4,89%). The Wastewater charges for services
increased from the last fiscal year by $492,948 (4.28%). The Parking charges for services increased by $80,048 (9.35%). The
Transit charges for services increased by $16,720 (11.35%). The Airport charges for services increased by $30,768 (17,58%).
Operating grants and contributions increased by $1,074,853 (71.82%).
Capital grants and contributions increased by $214,630 (33.44%) which was due primarily to a decrease in Wastewater’s capital
grants of $36,225; and an increase in Airport’s capital grants of $250,855.
17
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Analysis of the Government’s Funds
As noted earlier, the City of Jefferson uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the City of Jefferson’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 of Jefferson’s financing requirements.
In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
As of the end of the current fiscal year, the City of Jefferson’s governmental funds reported combined ending fund balances of
$32,023,468, an increase of $3,072,401 in comparison with the prior fiscal year. The amount available for spending at the
government’s discretion was $8,195,657 since this is the government funds combined unassigned fund balance. The remainder of the
fund balance ($23,827,811) is either nonspendable, restricted, committed, or assigned to indicate that it is not available for new
spending because it has already been committed to a) liquidate contracts and purchase orders of prior period relating to capital
improvement tax projects and grant related expenditures ($3,181,677), b) restrict other capital commitments ($19,180,884), c) restrict
specific donations ($738,090), and d) account for nonspendable inventories and prepaids ($727,160).
The General Fund is the chief operating fund of the City of Jefferson. At the end of the current fiscal year, the unassigned fund
balance of the general fund was $8,195,657 while the total fund balance reached $10,277,883. The unassigned fund balance increased
$195,402 from the previous fiscal year. This was due primarily to an increase in sales and other user taxes of $901,993; an increase in
property taxes of $10,589; an increase in utility/franchise taxes of $194,521; a decrease in licenses, permits and fees of $129,910; an
increase in intergovernmental of $1,545,910; an increase in charges for services of $275,110; and a decrease in fine and forfeitures of
$65,161, while transfers out increased by $81,062 due primarily to a decrease to the Transit Fund of $392,637; and an increase to the
Airport Fund of $34,205. Additionally, there were transfers out of an additional $439,494 to various City Funds related to American
Rescue Plan Act (ARPA) funds.
As a measure of the general fund’s liquidity, it may be useful to compare both the unassigned fund balance and the total fund balance
to total fund expenditures. The unassigned fund balance represents 22.2% of the total general fund expenditures ($36,957,074), while
the total fund balance represents 27.8% of that same amount. In addition, unassigned fund balance represents 21.7% of total general
fund expenditures and transfers out ($37,696,957), while the total fund balance represents 27.3% of that same amount. Transfers
include subsidies to Airport ($113,317) and Transit ($187,073).
The City of Jefferson’s three other major governmental funds are the Parks Fund, the Capital Improvement Tax Fund, and the Public
Safety Tax Fund . As of the fiscal year-end the fund balance analysis is as follows:
18
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
2022 2021 2022 2021 2022 2021
Net changes in fund balances $ 529,722 $ 234,782 $ 1,061,578 $ 2,321,513 $ 1,424,475 $-
Restricted fund balance 5,345,876 6,993,079 6,939,697 9,090,085 1,424,475 -
Total fund balance 8,957,028 8,427,306 11,170,246 10,108,668 1,424,475 -
Fund revenues 11,283,220 13,381,900 6,864,437 8,659,178 1,904,507 -
Fund expenditures 10,935,838 14,132,061 5,910,484 4,459,683 - -
Restricted fund balance
percentage of expenditures 48.9% 53.4%117.4% 203.8%- -
Total fund balance percentage of
expenditures 81.9% 59.6%189.0% 226.7%- -
Parks Fund Public Safety Tax FundCapital Improvement Tax Fund
The Parks Fund accounts for Parks Administration; Ice Arena; Oak Hills Golf Course; Memorial Pool; Ellis Porter Pool; Parks
Maintenance; Recreation Programs; Outdoor Recreation Programs; Camp Programs; the Linc; the Amphitheater; and Arts and Events.
Parks revenue decreased $2,098,680 from the previous fiscal year’s revenue and expenditures decreased $3,196,223. The key factors
in the increase in revenue were an increase in sales and other user taxes of $433,772; an increase in intergovernmental of $162,945; a
decrease in local grants of $3,055,619; an increase in charges for services of $346,026; an increase in investment earnings of $21,359;
and a decrease in miscellaneous revenue of $7,163 from the prior fiscal year. The Parks fund balance increased by $529,722. A
factor in the increase of the parks fund balance was a decrease in proceeds from the sale of assets in the amount of $921,018 and an
increase in transfers in in the amount of $118,415 compared to the prior fiscal year.
The Capital Improvement Tax Fund accounts for sales tax funded capital improvement projects. The Capital Improvement Tax
Fund revenue, including proceeds from sale of assets and transfers, decreased from the previous fiscal year by $1,595,968 and
expenditures including transfers decreased by $336,033 over the previous fiscal year. The decrease in revenue was primarily due to an
increase in sales and other user taxes of $433,794; a decrease in intergovernmental of $2,285,115; an increase in investment earnings
of $56,580; and an increase in sale of assets of $198,773 from the previous fiscal year. Capital improvement projects that were
reappropriated in fiscal year 2022 from 2021 amounted to $6,107,427 (from uncompleted projects.) The Capital Improvement Tax
fund balance increased by $1,061,578.
The Public Safety Tax Fund accounts for sales tax specifically designated for public safety that are legally restricted to expenditures
for the benefit of public safety. The Public Safety Tax Fund revenue increased from the previous fiscal year by $1,904,507 and
expenditures including transfers increased by $480,032 over the previous fiscal year. The increase in revenue was primarily due to an
increase in sales and other user taxes of $1,900,790; and an increase in investment earnings of $3,717 from the previous fiscal year.
The Public Safety Tax fund balance increased by $1,424,475.
Proprietary funds. The City of Jefferson’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail. Unrestricted net position of the enterprise funds at the end of the year amounted to
$11,318,350 to reflect the consolidation of the Internal Service Fund related to the enterprise funds in the government-wide financial
statements) as follows:
19
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Unrestricted Net positon:
2022 2021
Airport $ 158,715 $ 195,561
Parking $ 5,243,001 $ 5,226,229
Transit $ 225,978 $ 8,799
Wastewater $ 5,690,656 $ 2,212,776
The total gain in net position was $2,286,732, compared to last fiscal year’s gain of $976,564 as follows:
Total Growth (Loss) in Net Position:
2022 2021
Airport $ (229,564) $ (805,261)
Parking $ 282,167 $ 215,154
Transit $ 305,363 $ (430,930)
Wastewater $ 1,928,766 $ 1,997,601
Other factors concerning the finances of these enterprise funds have already been addressed in the discussion of the City of Jefferson’s
business-type activities.
General Fund Budgetary Highlights
Original budget compared to final budget. During the year original budgeted revenues and other financing sources, and in turn
original budgeted expenditures, were increased by $11,054,920 for grant awards; $10,829 for accepted donations; and $10,472 to
allow departments to utilize insurance claim proceeds.
There was also a need to make amendments to reallocate appropriations among departments. Generally, the movement of the
appropriations between departments was not significant.
Final budget compared to actual results. The most significant differences between estimated revenues and actual revenues were as
follows:
20
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Revenue source
Estimated
revenues
Actual
revenues Variance
Sales and other user taxes $ 12,617,475 $ 13,775,230 $ 1,157,755
Licenses, permits, and fees 1,066,438 905,659 (160,779)
Intergovernmental 17,371,746 5,638,505 (11,733,241)
Fines and forfeitures 580,000 413,558 (166,442)
Miscellaneous 547,898 702,031 154,133
The reasons for the variances in the above revenue sources vary depending on the revenue source.
The sales and other user taxes were more than estimated. While Council estimated a conservative 2.5% increase over the prior years
adopted budget for sales tax, actual collections were 9.18% higher than the estimated budget.
The license, permits, and fees were less than estimated primarily due to the fact that actual building construction fees were $167,164
less than the estimated budget. The original budget included projects that came to the City’s attention prior to the budgeting process,
but ultimately did not come to fruition.
Intergovernmental is the classification used to report grant revenues. Most of the grants that the City receives are reimbursable grants,
meaning that City must incur the expenses and then request them for reimbursement. Revenues are budgeted when a grant is accepted,
however revenues are not recognized until the expenditures have been reimbursed. Due to the fact that many grants span multiple
years, it is common for the City to accept a grant in one fiscal year and in turn include the revenue in the budget, but not actually
receive revenue until a subsequent fiscal year.
The fines and forfeitures were less than estimated primarily due to the fact that police traffic fines were $151,028 less than the
estimated budget. Collections of these fines is driven by ticket writing, which has been down considerably.
Miscellaneous revenues were more than estimated primarily due to the fact that actual collections of police evidence funds were
$74,747 higer than the estimated budget and insurance claims revenue was $24,421 higher than the estimated budget.
The most significant differences in between estimated expenditures and actual expenditures were as follows:
21
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Expenditure source
Esti mate d
expenditures
Actual
expenditures Variance
Non-departmental $ 3,425,336 $ 3,000,262 $ 425,074
Entitlement grant 822,681 185,337 637,344
CDBG-CV Transformational Housing 575,760 - 575,760
HPF-P Bruhn Revitalization 675,000 64 674,936
CDGB-CV Cole County EMS Station 2,000,000 - 2,000,000
ARPA 5,780,918 310,663 5,470,255
Police 12,796,706 11,867,373 929,333
Fire 8,693,965 8,434,411 259,554
Capital Projects 3,711,522 297,366 3,414,156
Actual expenditures for the Entitlement Grant, CDBG-CV Transformational Housing, HPF-P Bruhn Revitalization, CDBG-CV Cole
County EMS Station, and ARPA are less than the estimated expenditures due to the fact that the estimated expenditures are grant
related. Budget authority is given when a grant is accepted, however due to the fact that many grants span multiple years, it is common
for the City to accept a grant in one fiscal year and in turn increase estimated expenditures, but not actually expend the funds until a
preceding fiscal year.
The estimated expenditures for Non-departmental were based on a specific amount of funds allocated for Capitol Avenue demolitions
and acquisitions, some of which will span multiple years. Remaining funds were reappropriated to fiscal year 2023 and will be spent
on designated demolitions and acquisitions as needed.
Police and Fire actual expenditures are less than the estimated expenditures due to staffing vacancies, some of which are a result of
retirements at higher level positions.
The estimated expenditures for Capital Projects were based on total cost for specific projects, some of which will span multiple years.
Remaining funds were reappropriated to fiscal year 2023 and will be spent on the designated projects as they are completed.
Capital Asset and Debt Administration
Capital Assets. The City of Jefferson’s investment in capital assets for its governmental and business type activities as of October 31,
2022, amounts to $246,302,435 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
improvements, infrastructure (such as streets, sidewalks, street lighting and drainage systems,) machinery and equipment, parks
facilities, airport facilities, parking facilities, transit facilities and wastewater plant and systems.
Major capital asset events during the current fiscal year included the following:
Pipelining projects in the amount of $532,346.
Norris Drive culvert project in the amount of $326,434.
Grant Street project in the amount of $823,684.
22
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Airport parking lot project in the amount of $734,105.
Parking garage rehabilitation in the amount of $276,735.
Binder pump stations upgrade in the amount of $631,200.
Parks athletic field improvements in the amount of $243,900.
EP botanical garden project in the amount of $453,065.
2022 2021 2022 2021 2022 2021
Land $ 16,612,118 $ 16,597,803 $ 5,189,257 $ 5,236,564 $ 21,801,375 $ 21,834,367
Easements 511,913 511,913 67,374 67,374 579,287 579,287
Buildings 18,999,306 19,695,850 51,817,772 53,648,609 70,817,078 73,344,459
Improvements other than buildings 14,691,472 15,380,662 4,906,935 5,821,281 19,598,407 21,201,943
Machinery and equipment 7,112,193 6,739,909 1,209,021 1,561,963 8,321,214 8,301,872
Infrastructure 80,215,986 79,597,949 36,190,505 37,520,516 116,406,491 117,118,465
Construction in progress 6,160,281 7,325,833 2,618,302 665,370 8,778,583 7,991,203
Total $ 144,303,269 $ 145,849,919 $ 101,999,166 $ 104,521,677 $ 246,302,435 $ 250,371,596
City of Jefferson's Capital Assets
Governmental Activities Business-type Activities Total
(net of depreciation)
Additional information on the City of Jefferson’s capital assets can be found in Note 6 Capital Assets in the Notes to the Financial Statements in the Financial Section of this report.
Long-term debt. At the end of the fiscal year 2022, the City of Jefferson had total debt outstanding of $46,587,694.
23
City of Jefferson, Missouri
Management’s Discussion and Analysis
For the Year Ended October 31, 2022
(unaudited)
Governmental
activities
Business-type
activities Total
Governmental
activities
Business-type
activities Total
Revenue Bonds $ - $ 36,685,600 $ 36,685,600 $- $ 41,181,600 $ 41,181,600
Special Obligation Bonds 6,400,000 - 6,400,000 6,695,000 - 6,695,000
Deferred Amounts 140,269 880,636 1,020,905 148,602 1,002,739 1,151,341
Fire Apparatus Lease 2,481,189 - 2,481,189 2,811,330 - 2,811,330
Total $ 9,021,458 $ 37,566,236 $ 46,587,694 $ 9,654,932 $ 42,184,339 $ 51,839,271
2022 2021
City of Jefferson's Outstanding Debt
$37,566,236 was associated with Wastewater Sewerage System Revenue Bonds. During the 2022 fiscal year, the City retired
$4,496,000 in Wastewater Sewerage System Revenue Bond principal payments.
$6,540,269 was associated with Parks System Special Obligation Bonds. During the 2022 fiscal year, the Parks System retired
$295,000 in Parks System Special Obligation Bond principal payments.
$2,481,189 was associated with the lease for fire apparatus. This lease was entered into during the 2017 fiscal year with total principal
in the amount of $5,037,541 and the City of Jefferson made $330,141 in principal payments during the 2022 fiscal year.
The City of Jefferson’s total debt decreased during fiscal year 2022 by $5,251,577 due to the key factors stated above. Additional
information on the City of Jefferson’s long-term debt can be found in Note 7 Long-Term Debt in the Notes to the Financial Statements
in the Financial Section of this report.
Economic Factors and Next Year’s Budgets
The following economic factors currently affect the City of Jefferson and were considered when developing the 2022-2023 fiscal year
budget.
The City consistently ranks as one of the lower unemployment areas in the state. The local unemployment rate at fiscal year-end
October 31, 2022 was 2.1% compared to 2.4% October 31, 2021. This compares favorably to the state’s average unemployment rate
of 2.3% and the national average of 3.4%.
Minimal, if any, expected increases in property tax.
No new revenue sources were identified.
Sales tax revenue was budgeted with a 7.8% increase over the FY2022 adopted budget.
The budget for the Department of Parks and Recreation included debt service payments for bond issuance.
Requests for Information
This financial report is designed to provide a general overview of the City of Jefferson’s finances for all those with an interest in the
government’s finances. Questions concerning any of the information should be addressed to the Office of the Finance Director, City of
Jefferson, 320 E. McCarty Street, Jefferson City, MO 65101.
24
BASIC FINANCIAL STATEMENTS
25
A-1
12/31/2021
Component Unit
Governmental Business-Type JC Convention &
Activities Activities Total Visitors Bureau
ASSETS
Cash and cash equivalents $ 34,843,743 $ 11,085,276 $ 45,929,019 $ 8,562,243
Receivables, net of uncollectibles:
Taxes and franchise fees 12,085,161 - 12,085,161 -
Accounts 557,775 1,290,218 1,847,993 -
Lease 951,375 2,231,003 3,182,378 -
Intergovernmental receivable 1,391,921 531,873 1,923,794 -
Due from primary government - - - 184,707
Internal balances 168,873 (168,873) - -
Prepaids 383,812 79,529 463,341 3,500
Inventories 343,346 - 343,346 14,056
Restricted assets:
Cash and cash equivalents 183,179 1,243,717 1,426,896 -
Accrued interest - 63,375 63,375 -
Investments 176,704 - 176,704 -
Net pension asset 7,528,597 4,551,923 12,080,520 -
Capital assets:
Land and construction in progress 23,284,313 7,874,933 31,159,246 -
Other capital assets, net of depreciation 121,018,956 94,124,233 215,143,189 71,164
Total assets 202,917,755 122,907,207 325,824,962 8,835,670
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 4,823,335 243,582 5,066,917 -
Deferred outflows related to OPEB 329,095 63,765 392,860 -
Total deferred outflows of resources 5,152,430 307,347 5,459,777 -
LIABILITIES AND NET POSITION
Accounts payable 1,668,552 335,080 2,003,632 38,146
Retainage payable 75,110 - 75,110 -
Accrued liabilities 1,577,990 206,924 1,784,914 693
Deposits 91,690 1,060 92,750 -
Unearned revenue - 46,145 46,145 3,565
Liabilities payable from restricted assets:
Accounts payable - 11,956 11,956 -
Retainage payable - 70,020 70,020 -
Accrued interest payable - 325,858 325,858 -
Deposits - 469,938 469,938 -
Due to component unit 299,311 - 299,311 -
Noncurrent Liabilities:
Payable from restricted assets:
Due within one year - 1,072,617 1,072,617 -
Due within one year 1,266,423 2,261,747 3,528,170 33,140
Due in more than one year 13,378,928 34,975,112 48,354,040 440,900
Total liabilities 18,358,004 39,776,457 58,134,461 516,444
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 9,186,778 1,595,805 10,782,583 -
Deferred inflows related to OPEB 612,205 118,622 730,827 -
Deferred inflows related to leases 923,945 2,182,724 3,106,669 -
Deferred revenue - property taxes 5,847,890 - 5,847,890 -
Total deferred inflows of resources 16,570,818 3,897,151 20,467,969 -
NET POSITION
Net investment in capital assets 135,441,695 64,549,335 199,991,030 71,164
Restricted for:
Parks 8,484,632 - 8,484,632 -
Revenue bond debt service requirements - 477,244 477,244 -
Bond renewal and replacement requirements - 500,000 500,000 -
Pensions/OPEB - 2,863,419 2,863,419 -
Capital projects 9,271,777 - 9,271,777 7,250,781
Public safety 1,966,855 - 1,966,855 -
Community development 2,881 - 2,881 -
Statutory obligations 200,000 - 200,000 -
Unrestricted 17,773,523 11,150,948 28,924,471 997,281
Total Net Position $ 173,141,363 $79,540,946 $ 252,682,309 $8,319,226
The notes to the financial statements are an integral part of this statement.
CITY OF JEFFERSON, MISSOURI
Statement of Net Position
October 31, 2022
Primary Government
26
B-1Operating CapitalComponent UnitCharges for Grants and Grants and Governmental Business-Type JC Convention &Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Visitors BureauPrimary government:Governmental activities: General government $ 10,112,376 $ 2,357,480 $ 3,793,291 $ 306 $ (3,961,299) $ - $ (3,961,299) $ - Public safety 19,816,169 1,018,313 447,340 237,563 (18,112,953) - (18,112,953) - Community development 14,241,768 1,061,612 3,170,458 931,070 (9,078,628) - (9,078,628) - Cultural and recreation 7,835,503 3,394,415 4,000 786,285 (3,650,803) - (3,650,803) - Interest on long-term debt237,143 - - - (237,143) - (237,143) - Total governmental activities52,242,959 7,831,820 7,415,089 1,955,224 (35,040,826) - (35,040,826) - Business-type activities: Wastewater10,649,964 11,999,282 - 375,786 - 1,725,104 1,725,104 - Airport1,351,167 205,745 11,121 480,652 - (653,649) (653,649) - Parking836,352 935,829 - - - 99,477 99,477 - Transit2,881,247 164,076 2,560,233 - - (156,938) (156,938) - Total business-type activities15,718,730 13,304,932 2,571,354 856,438 - 1,013,994 1,013,994 - Total primary government $ 67,961,689 $ 21,136,752 $ 9,986,443 $ 2,811,662 (35,040,826) 1,013,994 (34,026,832) - Component unit (12/31/21):JC Convention & Visitors Bureau $ 1,707,747 $ 550,669 $ 1,604,630 447,552 General revenues: Taxes Sales and other user taxes30,489,452 - 30,489,452 - Property taxes5,790,117 - 5,790,117 - Franchise and utility license taxes6,466,327 - 6,466,327 - Investment earnings647,892 219,430 867,322 3,432 Miscellaneous 512,630 259,030 771,660 42,232 Gain (loss) on sale of capital assets 350,240 96,555 446,795 - Transfers(712,617) 712,617 - - Total general revenues and transfers43,544,041 1,287,632 44,831,673 45,664 Change in net position8,503,215 2,301,626 10,804,841 493,216 Net position-beginning164,638,148 77,239,320 241,877,468 7,826,010 Net position-ending$ 173,141,363 $ 79,540,946 $ 252,682,309 $ 8,319,226 The notes to the financial statements are an integral part of this statement. Primary GovernmentCITY OF JEFFERSON, MISSOURIStatement of ActivitiesFor the Year Ended October 31, 2022Net (Expense) Revenue andProgram RevenuesChanges in Net Position27
C-1
Total
Capital Public Safety Governmental
General Parks Improvement Tax Tax (See H-1)Funds
ASSETS
Current assets:
Cash and cash equivalents $ 13,759,460 $ 8,048,860 $ 11,083,639 $ 867,601 $ 311,267 $ 34,070,827
Receivables (net of allowance
for uncollectibles):
Taxes and franchise fees 9,097,286 1,125,063 1,125,063 556,874 180,875 12,085,161
Accounts 188,976 2,138 - - - 191,114
Lease 951,375 - - - - 951,375
Due from other funds 55,306 - - - - 55,306
Receivables from other governments 1,072,870 64,516 - - - 1,137,386
Prepaids 349,375 34,437 - - - 383,812
Inventories 342,341 - - - 1,005 343,346
Current restricted assets:
Cash and cash equivalents - 159,883 - - - 159,883
Total assets $ 25,816,989 $ 9,434,897 $ 12,208,702 $ 1,424,475 $ 493,147 $ 49,378,210
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 489,040 $ 207,462 $ 972,050 $ - $ 299,311 $ 1,967,863
Retainage payable 4,946 3,758 66,406 - - 75,110
Accrued liabilities 1,415,139 162,851 - - - 1,577,990
Deposits payable 52,408 39,282 - - - 91,690
Unearned revenue 6,567,579 64,516 - - - 6,632,095
Total liabilities 8,529,112 477,869 1,038,456 - 299,311 10,344,748
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 5,877,751 - - - - 5,877,751
Unavailable revenue - surtax 208,298 - - - - 208,298
Lease related 923,945 - - - - 923,945
Total deferred inflows of resources 7,009,994 - - - - 7,009,994
FUND BALANCES
Nonspendable:
Inventories 342,341 - - - 1,005 343,346
Prepaids 349,375 34,437 - - - 383,812
Restricted:
Parks - 5,345,876 - - - 5,345,876
Capital projects - - 6,939,697 - 6,939,697
Public Safety - - - 1,424,475 - 1,424,475
Fire - museum - - - - - -
Police - drug forfeiture 164,596 - - - - 164,596
Police - evidence funds 166,772 - - - - 166,772
Police - animal shelter 184,360 - - - - 184,360
Police - community projects 26,652 - - - - 26,652
Police training - - - - 47,523 47,523
Lodging Tax - - - - 53,745 53,745
JC Veterans Plaza - - - - 4,660 4,660
City Hall Art - - - - 21,190 21,190
USS Jefferson City Submarine - - - - 11,023 11,023
Woodland Cemetery - - - - 24,290 24,290
Sidewalk waiver 2,560 - - - - 2,560
Cemetery restoration 321 - - - - 321
Committed:
Housing needs assessment 1,362 - - - - 1,362
Demolition 324,453 - - - - 324,453
Repair and paint Ripple Glass containers 10,000 - - - - 10,000
Police vehicles - - 3,976 - - 3,976
Police video cameras 46,750 - - - - 46,750
Website development - JC Parks - - 2,275 - - 2,275
Parks architectural and civil engineer services - 25,366 - - - 25,366
Wears Creek bank stabilization project - 14,750 - - - 14,750
MSP Parkway project - - 194,931 - - 194,931
Airport apron maintenance project - - 570 - - 570
PD information systems upgrade - - 1,500 - - 1,500
PD renovations and upgrades - - 4,997 - - 4,997
PD employment marketing strategy - - 4,800 - - 4,800
Pipe lining - - 64,303 - - 64,303
Norris Drive stormwater 3,825 - 28,765 - - 32,590
Douglas Davis stormwater 79,446 - 143,540 - - 222,986
Architectural survey 5,500 - - - - 5,500
Capital Area Pedestrian and Bike Plan update 48,490 12,122 - - - 60,612
Adams Street sidewalks 313,000 - 237,489 - - 550,489
Grant Street sidewalks and roadway - - 67,915 - - 67,915
Pavement condition evaluation - - 19,675 - - 19,675
JC Loop signing - - 24,808 - - 24,808
Riverside Park improvements - 360,167 147,754 - - 507,921
Parks AV equipment - 7,629 - - - 7,629
Parks outdoor fitness court - 17,925 - - - 17,925
Greenway development - - 92,225 - - 92,225
Mill & Overlay Projects - - 831,179 - - 831,179
Compensation survey 9,500 - - - - 9,500
Finance printer 2,923 - - - - 2,923
Replacement bus lift - - 27,767 - 27,767
Assigned:
Subsequent year's budget: appropriation of fund balance - 3,138,756 2,332,080 - 30,400 5,501,236
Unassigned:8,195,657 - - - - 8,195,657
Total fund balances 10,277,883 8,957,028 11,170,246 1,424,475 193,836 32,023,468
Total liabilities, deferred inflows of resources, and fund
balances $ 25,816,989 $ 9,434,897 $ 12,208,702 $ 1,424,475 $ 493,147 $ 49,378,210
The notes to the financial statements are an integral part of this statement.
CITY OF JEFFERSON, MISSOURI
Balance Sheet
Governmental Funds
October 31, 2022
Governmental Funds
Total
Nonmajor
28
Total fund balance - total governmental funds (from C-1)$ 32,023,468
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not financial resources and 144,303,269
therefore are not reported in the funds.
Certain assets are not reported in this fund financial statement because they are not
available to pay current-period expenditures and are unavailable revenue in the funds.6,870,253
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds:
Compensated absences (3,046,923)
Long-term debt (9,021,457)
The net pension assets (liabilities) reported in governmental activities is not a financial resource 7,528,597
and therefore are not reported in the funds.
The net OPEB liabilities reported in governmental activities is not a financial resource (1,452,442)
and therefore are not reported in the funds.
Certain deferred outflows of resources represent a consumption of net assets that applies to future periods
and certain deferred inflows of resources represent an acquisition of net assets that applies to future
periods and therefore are not reported in the funds.
Pension related outflows - LAGERS 4,823,335
Pension related inflows - LAGERS (9,186,778)
OPEB related outflows 329,095
OPEB related inflows (612,205)
Internal service funds are used by management to charge the costs of workers
compensation and self-funded health insurance. The assets and liabilities of the
internal service funds are included in governmental activities in the statement of net
position ($415,749 plus $167,402 allocation to business-type) 583,151
Net position of governmental activities $ 173,141,363
The notes to the financial statements are an integral part of this statement.
to the Statement of Net Position
October 31, 2022
CITY OF JEFFERSON, MISSOURI
Reconciliation of the Balance Sheet
of Governmental Funds
29
C-3Total Nonmajor Governmental TotalCapital Public Safety Funds GovernmentalGeneral Parks Improvement Tax Tax (See H-2) FundsREVENUES Sales and other user taxes $ 13,775,230 $ 6,664,945 $ 6,664,966 $ 1,900,790 $ 1,483,521 $ 30,489,452 Property taxes 5,844,743 - - - - 5,844,743 Utility/Franchise taxes 6,465,661 - - - - 6,465,661 Licenses, permits and fees 905,659 - - - - 905,659 Intergovernmental 5,638,505 500,000 - - - 6,138,505 Local grants - 290,285 - - - 290,285 Charges for services 3,112,603 3,394,415 - - - 6,507,018 Fines and forfeitures 413,558 - - - 5,585 419,143 Investment earnings 289,635 154,582 199,471 3,717 5,648 653,053 Contributions 468,401 - - - 1,306 469,707 Miscellaneous 233,630 278,993 - - 7 512,630 Total revenues 37,147,625 11,283,220 6,864,437 1,904,507 1,496,067 58,695,856 EXPENDITURESCurrent: General government 7,501,595 20,891 20,891 - 1,457,682 9,001,059 Public safety 20,032,245 - - - - 20,032,245 Community development 8,703,271 - - - - 8,703,271 Cultural and recreation- 8,845,875 - - - 8,845,875 Capital outlay719,963 1,598,454 5,489,593 - - 7,808,010 Debt service: Principal, notes and leases- 295,000 330,142 - - 625,142 Interest- 175,618 69,858 - - 245,476 Total expenditures36,957,074 10,935,838 5,910,484 - 1,457,682 55,261,078 Excess (deficiency) of revenues over expenditures190,551 347,382 953,953 1,904,507 38,385 3,434,778 OTHER FINANCING SOURCES (USES)Proceeds from sale of assets87,542 63,925 198,773 - - 350,240 Transfers in508,951 118,415 - - - 627,366 Transfers out(739,883) - (91,148) (480,032) (28,920) (1,339,983) Total other financing sources and uses(143,390) 182,340 107,625 (480,032) (28,920) (362,377) Net change in fund balances47,161 529,722 1,061,578 1,424,475 9,465 3,072,401 Fund balances-beginning10,230,722 8,427,306 10,108,668 - 184,371 28,951,067 Fund balances-ending$ 10,277,883 $ 8,957,028 $ 11,170,246 $ 1,424,475 $ 193,836 $ 32,023,468 The notes to the financial statements are an integral part of this statement.CITY OF JEFFERSON, MISSOURIStatement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental FundsFor the Year Ended October 31, 202230
Net change in fund balances - total governmental funds (from C-3)$ 3,072,401
Amounts reported for governmental activities in the statement of activities (B-1)
are different because:
Governmental funds report capital outlays as expenditures. However, in the (1,341,145)
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by
which capital outlays exceeded depreciation in the current period.
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.2,417,856
The net effect of various miscellaneous transactions involving capital assets
(i.e., sales, trade-ins, donations) is to increase net position.(205,505)
The issuance of long-term debt (e.g., leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items:
Lease payments 330,142
Bond payments 303,333
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.
Compensated absences (295,739)
Pension related amounts, pension expense - LAGERS 4,151,269
OPEB related amounts, OPEB expense (20,937)
An Internal Service Fund is used by management to charge the costs of
workers compensation and self-funded health insurance. The net revenue
(expense) $106,434 of the internal service funds is reported with governmental
activities in the amount of $91,540 with the balance $14,894 allocated to the
business activities. 91,540
Change in net position of governmental activities $ 8,503,215
The notes to the financial statements are an integral part of this statement.
CITY OF JEFFERSON, MISSOURI
Reconciliation of the Statement of Revenues,
of Governmental Funds
For the Year Ended October 31, 2022
Expenditures, and Changes in Fund Balances
to the Statement of Activities
31
D-1
Governmental
Nonmajor Activities
Enterprise Funds Total Internal Service Funds
Wastewater Transit (See H-3) Enterprise Funds (See H-6)
ASSETS:
Current assets:
Cash and cash equivalents $ 5,579,348 $ 634 $ 5,505,294 $ 11,085,276 $ 772,917
Receivables (net of allowance for uncollectibles):
Accounts 1,217,791 10,871 61,556 1,290,218 366,661
Receivables from other governments 499 495,149 36,225 531,873 254,535
Lease 42,067 - 33,462 75,529 -
Prepaid items 41,115 31,278 7,136 79,529 -
Current restricted assets:
Cash and cash equivalents 743,717 - - 743,717 23,296
Accrued interest 63,375 - - 63,375 -
Total current assets 7,687,912 537,932 5,643,673 13,869,517 1,417,409
Noncurrent assets:
Lease receivable 44,240 - 2,111,234 2,155,474 -
Restricted assets:
Cash and cash equivalents 500,000 - - 500,000 -
Investments - - - - 176,704
Net pension asset 2,294,530 1,434,447 822,946 4,551,923 -
Capital assets:
Land 942,043 149,511 4,165,077 5,256,631 -
Distribution and collection systems 74,554,286 - - 74,554,286 -
Improvements other than buildings - 269,469 14,043,896 14,313,365 -
Buildings and equipment 80,220,625 6,020,548 6,490,105 92,731,278 -
Construction in progress 1,625,969 - 992,333 2,618,302 -
Less accumulated depreciation (66,068,734) (5,945,558) (15,460,404) (87,474,696) -
Total noncurrent assets 94,112,959 1,928,417 13,165,187 109,206,563 176,704
Total assets 101,800,871 2,466,349 18,808,860 123,076,080 1,594,113
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows related to pensions 172,963 62,035 8,584 243,582 -
Deferred outflows related to OPEB 31,668 22,254 9,843 63,765 -
Total deferred outflows of resources 204,631 84,289 18,427 307,347 -
LIABILITIES:
Current liabilities:
Accounts payable 109,692 139,146 86,242 335,080 -
Accrued liabilities 105,313 74,616 26,995 206,924 -
Deposits - - 1,060 1,060 -
Due to other funds - 1,471 - 1,471 53,835
Compensated absences 24,388 8,705 8,471 41,564 -
Claims and judgments - - - - 643,330
Unearned revenue - - 46,145 46,145 -
Revenue bonds payable-current 2,220,183 - - 2,220,183 -
Current liabilities payable from
restricted assets:
Accounts payable 11,956 - - 11,956 -
Retainage payable 70,020 - - 70,020 -
Accrued interest payable 325,858 - - 325,858 -
Deposits 469,938 - - 469,938 -
Revenue bonds payable-current 1,072,617 - - 1,072,617 -
Total current liabilities 4,409,965 223,938 168,913 4,802,816 697,165
Noncurrent liabilities:
Compensated absences 246,588 88,016 85,649 420,253 -
Net OPEB liability 139,767 98,215 43,441 281,423 -
Claims and judgments - - - - 481,199
Revenue bonds payable (net of unamortized discounts,
premiums and deferred amount of refunding) 34,273,436 - - 34,273,436 -
Total noncurrent liabilities 34,659,791 186,231 129,090 34,975,112 481,199
Total liabilities 39,069,756 410,169 298,003 39,777,928 1,178,364
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows related to pensions 768,406 520,000 307,399 1,595,805 -
Deferred inflows related to OPEB 58,912 41,399 18,311 118,622 -
Deferred inflows related to leases 84,094 - 2,098,630 2,182,724
Total deferred inflows of resources 911,412 561,399 2,424,340 3,897,151 -
NET POSITION:
Net investment in capital assets 53,824,358 493,970 10,231,007 64,549,335 -
Restricted for:
Pensions/OPEB 1,532,076 859,122 472,221 2,863,419 -
Statutory Obligations - - - - 200,000
Bond debt service 477,244 - - 477,244 -
Bond renewal and replacement 500,000 - - 500,000 -
Unrestricted 5,690,656 225,978 5,401,716 11,318,350 215,749
Total net position $ 62,024,334 $ 1,579,070 $ 16,104,944 $ 79,708,348 $415,749
Current Year adjustment to reflect the consolidation of internal service fund activities to enterprise funds.(167,402)
Net position of business-type activities (A-1) $ 79,540,946
The notes to the financial statements are an integral part of this statement.
Business-type Activities
CITY OF JEFFERSON, MISSOURI
Statement of Net Position
Proprietary Funds
October 31, 2022
32
D-2
Governmental
Nonmajor Activities
Enterprise Funds Total
Wastewater Transit (See H-4) Enterprise Funds (See H-7)
Operating Revenues:
Charges for services $ - $ 164,076 $ 1,141,574 $ 1,305,650 $ -
Charges for services pledged as security
for revenue bonds:
Sewer 11,999,282 - - 11,999,282 -
Miscellaneous 6,372 66,862 185,796 259,030 98,680
Premiums - - - - 5,424,301
Total operating revenues 12,005,654 230,938 1,327,370 13,563,962 5,522,981
Operating Expenses:
Personnel services 2,426,721 1,537,399 616,615 4,580,735 -
Contractual services 1,436,843 343,844 298,046 2,078,733 261,532
Claims expense 51,889 - - 51,889 5,395,780
Material and supplies 646,613 351,341 64,740 1,062,694 -
Repairs and maintenance 598,867 451,255 165,332 1,215,454 -
Utilities 525,813 27,186 34,655 587,654 -
Depreciation 4,002,952 147,042 1,006,182 5,156,176 -
Other operating 140,009 19,540 4,150 163,699 8,605
Total operating expenses 9,829,707 2,877,607 2,189,720 14,897,034 5,665,917
Operating income (loss) 2,175,947 (2,646,669) (862,350) (1,333,072) (142,936)
Nonoperating revenue (expenses):
Intergovernmental - 2,560,233 11,121 2,571,354 254,535
Interest and investment revenue 72,428 - 147,002 219,430 15,720
Unrealized gain (loss) on investment - - - - (20,885)
Interest expense and fees (827,183) (9,407) - (836,590) -
Gain/(Loss) on sale of capital assets 40,285 2,000 54,270 96,555 -
Total nonoperating revenues (expenses)(714,470) 2,552,826 212,393 2,050,749 249,370
Income (loss) before capital contributions and transfers 1,461,477 (93,843) (649,957) 717,677 106,434
Capital contributions 375,786 - 480,652 856,438 -
Transfers in 91,503 399,206 221,908 712,617 -
Change in net position 1,928,766 305,363 52,603 2,286,732 106,434
Net position-beginning 60,095,568 1,273,707 16,052,341 309,315
Net position-ending $ 62,024,334 $ 1,579,070 $ 16,104,944 $415,749
Amounts reported for business-type activities in the statement of activities
are different because:
Current Year adjustment to reflect the consolidation of Internal Service Funds 14,894
related to Enterprise Funds
Change in net position - business-type activities (B-1)$ 2,301,626
The notes to the financial statements are an integral part of this statement.
Internal Service Funds
Business-type Activities
CITY OF JEFFERSON, MISSOURI
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended October 31, 2022
33
D-3
Enterprise Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Services provided to other funds $ - $ - $ - $ - $ 5,456,717
Receipts from customers 11,792,484 135,806 (836,137) 11,092,153 -
Payments to suppliers (2,711,186) (728,281) (249,517) (3,688,984) (270,137)
Payments to employees (2,738,174) (1,815,039) 1,385,498 (3,167,715) -
Payments to other funds for services provided (900,093) (624,704) (258,232) (1,783,029) -
Claims paid (51,889) - - (51,889) (5,032,319)
Other receipts (payments) - - - - (35,404)
Net cash provided (used) by operating activities 5,391,142 (3,032,218) 41,612 2,400,536 118,857
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating subsidies and transfers from other funds 91,503 399,206 221,908 712,617 -
Operating subsidies from other governments - 2,640,422 50,628 2,691,050 355,572
Net cash provided by noncapital
financing activities 91,503 3,039,628 272,536 3,403,667 355,572
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Capital grants - - 480,652 480,652 -
Capital recovery contributions - - - - -
Purchases of capital assets (1,294,347) - (1,010,840) (2,305,187) -
Proceeds from sale of assets 40,285 2,000 101,577 143,862 -
Principal paid on capital debt (4,496,000) - - (4,496,000) -
Interest/fees paid on capital debt (1,005,179) - - (1,005,179) -
Net cash provided (used) by capital and
related financing activities (6,755,241) 2,000 (428,611) (7,181,852) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 103,296 (9,407) 147,002 240,891 15,720
Net cash provided by investing activities 103,296 (9,407) 147,002 240,891 15,720
Net increase (decrease) in cash and cash equivalents (1,169,300) 3 32,539 (1,136,758) 490,149
Balances-beginning of the year 7,992,365 631 5,472,755 13,465,751 306,064
Balances-end of the year $ 6,823,065 $ 634 $ 5,505,294 $ 12,328,993 $ 796,213
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ 2,175,947 (2,646,669) $ (862,350) $ (1,333,072) $ (142,936)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation expense 4,002,952 147,042 1,006,182 5,156,176 -
Change in assets, deferred outflows, deferred inflows, and liabilities:
Receivables, net (238,473) 7,493 (2,164,169) (2,395,149) (66,264)
Prepaid items (949) (628) (160) (1,737) -
Deferred outflows 67,521 41,583 20,097 129,201 -
Accounts and other payables 498,121 140,637 304,249 943,007 328,057
Deferred inflows (1,113,977) (721,676) 1,737,763 (97,890) -
Net cash provided (used) by operating activities $ 5,391,142 $ (3,032,218) $41,612 $ 2,400,536 $118,857
Contributions of capital assets from developers $375,786 $- $- $375,786 $-
The notes to the financial statements are an integral part of this statement.
CITY OF JEFFERSON, MISSOURI
(See H-8)
Statement of Cash Flows
Proprietary Funds
For the Year Ended October 31, 2022
Transit
Nonmajor
Total
Noncash Investing Activities
Governmental
Activities
Business-type Activities
Wastewater (See H-5)Enterprise Funds
Internal Service Funds
34
E-1
Custodial
Fund
ASSETS:
Cash and cash equivalents $ 313,457
Receivables (net of allowance
for uncollectibles):
Accounts 6,470
Due from other governments 56,354
Total assets 376,281
LIABILITIES:
Accounts payable 366,351
Due to other entities 6,470
Total liabilities 372,821
Net Position Restricted for Pensions
NET POSITION:
Restricted for:
Developers 3,460
Total net position $ 3,460
The notes to the financial statements are an integral part of this statement.
CITY OF JEFFERSON, MISSOURI
Statement of Fiduciary Net Position
Fiduciary Funds
October 31, 2022
35
E-2
Custodial
Fund
ADDITIONS:
Tax collections for developers $557,188
Total additions 557,188
DEDUCTIONS:
Payment of taxes to developers 548,280
Administrative expense 10,230
Total deductions 558,510
Net increase (decrease) in fiduciary net position (1,322)
Net position - beginning 4,782
Net position - ending $3,460
The notes to the financial statements are an integral part of this statement.
CITY OF JEFFERSON, MISSOURI
Statement of Changes in Fiduciary Net Position
For the Year Ended October 31, 2022
Fiduciary Funds
36
NOTES TO THE FINANCIAL STATEMENTS
The Notes to the Financial Statements include a summary of accounting policies
followed and information used by the City that are judged to be most appropriate
for full disclosure in the preparation of the financial statements.
37
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Jefferson, Missouri (the City) have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards
Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The
more significant of the government's accounting policies are described below.
A. Reporting Entity
The City of Jefferson is a municipal corporation governed by an elected mayor and ten-member council. The accompanying financial
statements present the government and its component units, entities for which the government is considered to be financially
accountable. In evaluating how to define the government for financial reporting purposes, management has considered all potential
component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth
in GAAP. The City's relationship to other legally separate organizations has been examined to determine if their inclusion in the
City's financial statements is necessary to fairly present the financial position of the City. The criteria used in this determination
included an examination of the nature and significance of the organization's relationship with the City, financial benefit or burden to
the City, the ability of the City Council to appoint members of the entity's governing board, and the level of influence the City has
over the activities of the organization. Based upon the application of these criteria, the following is a brief review of each potential
component unit addressed in defining the City's reporting entity.
Included within the reporting entity:
Jefferson City Convention & Visitors Bureau Inc.
The Jefferson City Convention and Visitors Bureau (JCCVB) Financial Statement (for fiscal year ended December 31, 2021) is
included as a discretely presented component unit because it is a legally separate non-profit organization and in excess of 60%
of the organizations total revenue is provided by the City from a 7% lodging tax assessed by the City of Jefferson. Additionally,
the City approves their annual operating budget and appoints their governing board.
A separate audited financial report of JCCVB is publicly available by written request from the Jefferson City Convention and
Visitors Bureau Inc., 700 E. Capitol Avenue, Jefferson City, MO 65101.
Excluded from the reporting entity:
● Jefferson City Public School District
● City of Jefferson Housing Authority
● City of Jefferson Industrial Development Authority
● Missouri River Regional Library System
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report
information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of
interfund activity has been removed from the statements. Exceptions to this general rule are administrative chargebacks and Central
Maintenance chargebacks. Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary
government is reported separately from certain legally separate component units for which the primary government is financially
accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect expense allocations are
included as part of program expenses in the statement of activities. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter is
38
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of
accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of cash flows. Property taxes are recognized as revenue in the year for
which they are budgeted rather than the year they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual
(i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all
revenues available if they are collected within 60 days after year end except those described below. Expenditures are recorded when
the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and
certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with
expendable available financial resources.
Property taxes, sales taxes, franchise taxes, other taxes, licenses, grants, interest and special assessments are susceptible to accrual.
Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that
time.
The City reports the following major governmental funds:
The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except
those required to be accounted for in another fund.
The parks fund, a special revenue fund, accounts for revenue sources from the operations of Parks and Recreation and sales
taxes specifically designated for Parks and Recreation that are legally restricted to expenditures for specific purposes including
major capital projects.
The capital improvement tax fund accounts for the acquisition of capital assets or construction of major capital projects not being
financed by other funds.
The public safety tax fund, a special revenue fund, accounts for revenue from a sales tax specifically designated for public safety
that are legally restricted to expenditures for the benefit of public safety. This fund is presented as a major fund because the City
believes it is particularly important to financial statement users.
The City reports the following major proprietary funds:
The wastewater fund accounts for the activities of the sewage treatment plant, sewage pumping and collection systems.
The transit fund accounts for the operations of bus fixed route and handicap public transit. This fund is presented as a major fund
because the City believes it is particularly important to financial statement users.
Additionally, the City reports the following fund types:
The internal service fund account for operations that provide self-insured worker’s compensation/risk management services and
self-funded health insurance to all operating funds of the City.
The fiduciary fund type, is a custodial fund, which is a clearing account for tax increment financing.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to
this general rule are direct costs and program revenues reported for the various functions concerned, which would be distorted if
eliminated.
39
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2)
operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes. However, taxes imposed by the State of
Missouri and Cole County and distributed to the City, such as gasoline, motor vehicle increase, and road and bridge taxes are included
in operating and capital grants and contributions on the government-wide statements.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally
result from providing services in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues
of the Wastewater, Airport, Parking, and Transit enterprise funds, and of the government’s internal service funds are charges to
customers for sales and services. The Wastewater fund also recognizes as operating revenue the portion of sewer connection fees
intended to recover the costs of connecting new customers to the system. Operating expenses for enterprise funds and the internal
service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first,
then unrestricted resources as they are needed.
D. Assets, Liabilities and Net Position or Equity
Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, amounts invested in overnight repurchase
agreements, mutual funds, and investments with a maturity date of 90 days or less.
Cash resources of all city individual funds are combined to form a pool which is invested in overnight repurchase agreements which
are carried at cost, which approximates fair value.
State law and the City’s investment policy allow the Finance Director to invest in U.S. Treasury obligations, U.S. Government Agency
securities and instrumentalities of government sponsored corporations, certificates of deposit, repurchase agreements, demand deposit
accounts (DDAs), negotiable order of withdrawal (NOW) accounts, Missouri local government investment pools and full faith and
credit obligations of the United States, the state of Missouri or any Missouri local government unit. Such investments are stated at fair
value. Fair values for investments for the City, as well as its component unit, are determined by closing market prices at fiscal year-
end as reported by the custodian.
Interest earned as a result of pooling is distributed to the appropriate funds based upon the month-end balances of cash and marketable
securities of each fund.
Contributions and Grants
Grants are received from State, Federal, and Local sources and are classified as either capital grants to be used for the construction or
acquisition of capital assets, or operating grants to be used at the discretion of the grantee for operating purposes.
Contributions and grants received by all funds are accounted for as follows: Contributions and grants for both capital and operating
purposes are included in revenues. Grant revenues are accrued as eligible expenditures or commitments are incurred, as appropriate
for the fund type involved.
Inventory and Prepaid Items
Inventory is valued at cost using the first-in, first-out method. Inventories consist of vehicle parts and accessories for the transit
system and City vehicles. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when
purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The cost of such
prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
40
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Restricted Assets
Certain assets of the Wastewater enterprise fund are set aside and restricted by bond covenants as security for payment of debt service
costs on outstanding bonds, for replacement reserves, for contingencies and for the periodic accumulation of funds to pay semi-annual
bond interest and annual principal due during the next fiscal year. Likewise, assets of the Worker’s Compensation Risk Management
Fund are set aside to comply with Missouri Statutes.
Capital Assets
Capital Assets, which include property, plant, equipment, lease assets, and infrastructure (e.g., roads, bridges, sidewalks, and similar
items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined by the City Finance Director as assets with an estimated useful life in excess of one year with a threshold of
$10,000.
Capital assets for all fund types are recorded at cost or estimated historical cost where cost could not be determined from available
records. Donated capital assets are recorded at their acquisition value at the date of donation. The cost of normal maintenance and
repairs that do not add to the value of the asset or materially extend the asset’s life are charged to operations as they occur and are not
included in the capital assets. Restorations and betterments are capitalized over the remaining useful life of the related capital assets,
as applicable.
Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Capital outlays for
intangible assets are capitalized. Intangible assets include easements with an indefinite life which are therefore, not being amortized.
Property, plant and equipment are depreciated using the straight line method over the following estimated useful lives:
Buildings 10-50 years
Improvements other than buildings 7-10 years
Wastewater plant and system 40-50 years
Machinery and equipment 5-20 years
Furniture and fixtures 5-10 years
Motor vehicles 5-15 years
Infrastructure:
Streets and stormwater drainage 35 years
Sidewalks and trails 30 years
Street lighting 30 years
Traffic signals 20 years
Lease assets are amortized over the lease term or the life of the asset, whichever is less.
Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay and
certain sick incentive pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and
retirements.
Long-term obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund
type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective
interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are recognized as
an expense in the period incurred.
Deferred outflows/inflows of resources
In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. Deferred
outflows represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then.
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City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. Deferred
inflows represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. Unavailable revenues are deferred and recognized as an inflow of resources in the period that the amounts
become available. Unearned revenues arise when resources are received by the government before it has a legal claim to them.
Fund Balances
The City follows GASB 54 for its reporting of fund balances.
GASB 54 provides for two major types of fund balances, which are nonspendable and spendable. Nonspendable fund balances are
balances that cannot be spent because they are not expected to be converted to cash or they are legally or contractually required to remain
intact. Examples of this classification are prepaid items, inventories, and principal (corpus) of an endowment fund.
In addition to the nonspendable fund balance, GASB 54 has provided a hierarchy of spendable fund balances, based on a hierarchy of
spending constraints.
Restricted – amounts that can be spent only for specific purposes because of constitutional provisions, charter requirements or
enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or
regulations of other governments.
Committed – amounts that can be used only for specific purposes determined by a formal action of the City Council. The City
Council is the highest level of decision making authority for the City of Jefferson. Commitments may be established, modified, or
rescinded only through ordinances or resolutions (which are equally binding) that are approved by the City Council.
Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for
specific purposes. Under the City’s adopted policy, only the City Council may assign amounts for specific purposes.
Unassigned – the residual classification for the government’s general fund and includes all spendable amounts not contained in the
other classifications. The general fund will be the only fund that reports a positive unassigned fund balance amount. In the other
governmental funds, if expenditures exceed the amounts restricted, committed or assigned to those purposes, it may be necessary to
report a negative unassigned fund balance.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers
restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are
available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as
needed, unless the City Council has provided otherwise in its commitment or assignment actions.
The City’s adopted Financial Policy Guidelines state that the City calculates an unassigned General fund balance at a minimum of 17% of
expenditures as originally adopted for the General Fund budget. All other funds, if they are not subsidized by other funds, shall maintain a
minimum 10% fund balance.
Leases
Lessee: At the commencement of the lease term, for arrangements where the City is the lessee, the City recognizes a lease liability and a
right of use (ROU) intangible asset. ROU assets represent the City’s right to use an underlying asset for the lease term and lease liabilities
represent the City’s obligation to make lease payments arising from the lease. The City recognizes lease liability with an individual present
value of $50,000 or more.
The City initially measures the lease liability at the present value of payment expected to be made during the lease term, and the lease
payments reduce the principal portion of the lease liability. The lease asset is initially measured as the initial amount of the lease liability,
adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset
is amortized on a straight-line basis over its useful life.
For governmental statements, an expenditure and other financing sources will be reported in the period the lease is initially recognized. The
expenditure and the other financing sources should be measured as noted in the previous paragraph. Subsequent governmental fund lease
payments are accounted for consistent with principles of debt service payments on long-term debt. The City has not recognized ROU
assets and lease liabilities for leases with non-cancellable periods of 12 months or less.
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City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Lessor: At the commencement of the lease term, for arrangements where the City is a lessor, the City recognizes a lease receivable and a
deferred inflow of resources. The lease receivable is measured at the present value of lease payments expected to be received during the
lease term. Deferred inflows of resources should be measured a the value of the lease receivable plus any payments received at or before
the commencement of the lease term that relate to future periods.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate is not provided by the lessor, the City uses
an estimate of its incremental borrowing rate based on current market data as of the commencement of the lease. The City includes lease
extension options in the lease term. The City recognizes lease receivable with an individual present value of $50,000 or more.
Adoption of New Accounting Pronouncements
Effective November 1, 2022, the City adopted the provisions of GASB Statement No. 87, Leases. The objective of this Statement is
to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by
governments. The statement requires recognition of certain lease assets and liabilities for leases that previously were classified as
operating leases and recognized inflows of resources or outflows of resources based on the payment provisions of the contract. It
establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an
underlying asset. A lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to
recognize a lease receivable and a deferred inflow of resources. With the adoption of the new accounting pronouncement, prior
capital leases are now presented as note payables.
Effective November 1, 2022, the City adopted GASB Statement No. 92, Omnibus 2020. This statement establishes accounting and
financial reporting requirements for specific issues related to leases, intra-entity transfers of assets, postemployment benefits,
government acquisitions, risk financing and insurance-related activities of public entity risk pools, fair value measurements, and
derivative instruments. This statement had no impact on the City’s financial statements.
E. Subsequent Events
The City evaluates events and transactions occurring subsequent to the date of the financial statements for matters requiring recognition or
disclosure in the financial statements. The accompanying financial statements consider events through June 5, 2023 which is the date the
financial statements were available to be issued.
NOTE 2: Reconciliation of Government-wide and Fund Financial Statements
A. Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net
position
The governmental fund balance sheet includes reconciliation between fund balance-total governmental funds and net position-
governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that
“Other long-term assets are not available to pay for current-period expenditures and therefore are unavailable revenue in the funds.”
The details of the $6,870,253 difference are as follows:
Property tax receivable/deferred inflow $ 238,159
Franchise tax receivable/unearned revenue 23,666
Grant receivable/unearned revenue 6,608,428
Net adjustment to increase fund balance-total governmental funds
to arrive at net position-governmental activities $ 6,870,253
B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in
fund balances and the government-wide statement of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes reconciliation between net
changes in fund balances-total governmental funds and changes in net position of governmental activities as reported in the
government-wide statement of activities. One element of that reconciliation explains that “Governmental funds report capital outlays
43
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and
reported as depreciation expense.” The details of this $1,341,145 difference are as follows:
Capital outlay $ 6,290,666
Depreciation expense (7,631,811)
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities $ (1,341,145)
Another element of that reconciliation states that ‘The net effect of various miscellaneous transactions involving capital assets (i.e.,
sales, trade-ins, and donations) is to increase net position.” The details of the $205,505 difference are as follows:
Capital outlay not capitalized (9,517)
The loss on disposal of capital assets are not reported in the
governmental funds $ (195,988)
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities $ (205,505)
Another element of that reconciliation states that “Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.” The details of the $2,417,856 difference are as follows:
Property tax revenue $ (54,627)
Franchise/Utility tax revenue 666
Intergovernmental revenue 2,471,817
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities $ 2,417,856
NOTE 3: FAIR VALUE MEASUREMENTS
The City categorizes its fair value measurements within the fair value hierarchy established by generally 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 prices
in active markets for identical assets.
The City’s investments by input levels as of October 31, 2022 are presented below.
Investment
US Treasury Note $ 176,704 $ 176,704
City's Investments 176,704 176,704
Total Investments $ 176,704 $ 176,704
Quoted Prices
Markets for
Identical Assets
(Level 1)
2022
Fair Value
44
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
NOTE 4: DEPOSITS & INVESTMENTS
As of October 31, 2022, the City of Jefferson had the following investments and maturities:
Type Maturities
City of Jefferson Investments:
Repurchase agreeements (cash & cash equivalents) Less than one year $ 46,616,182
Money Market Less than one year 739,734
US Treasury Note 5 years 176,704
Total City's Deposits/Investments $ 47,532,620
Total
See note 1.D., Deposits and Investments, for a discussion of how shares are valued. A credit rating is not available.
Interest rate risk. It is the policy of the City to invest public funds in a manner which will provide maximum security of capital, meet
daily cash flow demands and earn a market rate of return on investment for like maturities and securities instruments; while
conforming to all applicable statutes governing the investment of public funds. The City manages its exposure to declines in fair
values by limiting the segmented time distribution of its investment portfolio to less than one year.
Credit risk. State statutes authorize the City to invest in obligations of the U.S. Treasury, and federal agencies and instrumentalities;
certificates of deposit issued by Missouri banks; and repurchase agreements.
Concentration of credit risk. The City of Jefferson has no formal policy related to a specific deposit or investment risk. However, in
accordance with the City of Jefferson investment policy, the investments will be diversified to minimize the risk of loss resulting from
over concentration of assets in (1) a specific investment type, (2) a specific issuer or (3) a specific maturity. The following guidelines
represent limits established for diversification by instrument:
Type and Issuer
minimum maximum
U.S. Treasury Obligations 0% 100%
U.S. Government Agency Securities and
Instrumentalities of Government
0% 80%
Certificates of Deposits (CD's)0% 50%
Repurchase Agreements, Demand Deposit Accounts
(DDAs), or Negotiable Order of Withdrawal (NOW)
Accounts
0% 100%
Full faith & credit obligations of the State or any Missouri
local governmental entity
0% 25%
Percent of Portfolio
Custodial credit risk - deposits. In the case of deposits, this is the risk that in the event of a bank failure, the City of Jefferson’s
deposits may not be returned to the City. All bank balances and certificates of deposit as of the balance sheet date are entirely insured
or collateralized with securities held by the City or by its agent in the City's name. The City has no custodial credit risk policy for
deposits.
Discretely Presented Component Unit:
Jefferson City Convention and Visitors Bureau (JCCVB), a discretely presented component unit, cash accounts are secured by the
Federal Deposit Insurance Corporation (FDIC) up to $250,000. JCCVB also maintains balances in overnight investment accounts
which are not insured or guaranteed by FDIC or any government agency. They are, however, invested in government-backed
securities. At December 31, 2021 amounts in the overnight investment account totaled $7,146,862.
45
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
NOTE 5: RECEIVABLES
Taxes receivable represent amounts due for property taxes, gasoline tax, franchise tax and sales tax which have been reflected as
revenues reduced by an appropriate allowance for uncollectible.
Taxes receivable includes a receivable for property tax in the amount of $5,847,890 for property assessed as of January 1, 2022.
However, the related revenue is deferred until after the fiscal year end since the taxes are budgeted and levied for the subsequent fiscal
year. Therefore, $5,847,890 was recognized as deferred inflow of resources in the government wide statements. The receivable also
includes the sales, motor vehicle and gasoline taxes charged by the retailers in October (point of sale). The third quarter taxes are due
by October 31 of which the State of Missouri receives the majority in the first week of November. The October monthly filer’s tax is
due by November 20 of which the State also receives the majority of it in November. Therefore, the State remits its November
collections to the City in December. The tax receivable includes both November and December receipts from the State of Missouri,
representing the taxes charged by retailers through October 31, 2022.
A. Property Taxes
The City's property tax is levied by the Counties of Cole and Callaway each October 1, based on the assessed value as of the previous
January 1, for all real and personal property located in the City. Assessed values are established by the County Assessors.
Property taxes are billed by November 1 following the levy date, due by December 31 and are considered delinquent on January 1. A
lien is placed on the property as of March 1 if delinquent taxes are not paid.
The assessed value for property located in the City as of January 1, 2021 upon which the Fiscal Year 2022 budget was based,
amounted to $936,659,522. The City's property tax levies per $100 of assessed valuation for the year ended October 31, 2022 were as
follows:
Cole Callaway
General Fund 0.4600$ 0.4600$
Firemen's Retirement $ 0.0961 0.0961$
Totals $ 0.5561 0.5561$
Levy (dollars)
The City is permitted by the Missouri State Constitution to levy taxes up to $1.00 per $100 assessed valuation for general
governmental services (General Fund) other than the payment of principal and interest on long-term debt and in unlimited amounts for
the payment of principal and interest on long-term debt. There was no Debt Service levy for the year ended October 31, 2022.
B. Loan, Notes and Accounts Receivable:
Schedule of Receivables
Receivables at October 31, 2022 on the fund financial statements consist of the following:
General Parks
Capital
Projects
Public
Safety Wastewater Transit
Non Major &
Other Funds Total
Taxes/Franchise Fees 9,677,387$ 1,125,063$ 1,125,063$ 556,874$ -$ -$ 180,875$ 12,665,262$
Accounts 208,420 2,138 - - 1,243,913 10,871 62,519 1,527,861
Lease 951,375 - - - 86,307 - 2,144,696 3,182,378
Due from other funds 55,306 - - - - - - 55,306
From other Governments 1,072,870 64,516 - - 499 495,149 36,225 1,669,259
Gross Receivables 11,965,358 1,191,717 1,125,063 556,874 1,330,719 506,020 2,424,315 19,100,066
Less: Allowance for
Uncollectible (599,545) - - - (26,122) - (963) (626,630)
Net Total Receivables 11,365,813$ 1,191,717$ 1,125,063$ 556,874$ 1,304,597$ 506,020$ 2,423,352$ 18,473,436$
46
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
NOTE 6: CAPITAL ASSETS
Capital asset activity for the year ended October 31, 2022 was as follows:
Primary Government
Beginning
Balances Increases Decreases
Ending
Balances
Governmental Activities:
Capital Assets, not being depreciated:
Land $ 16,597,803 $ 14,315 $ - $ 16,612,118
Easements 511,913 - - 511,913
Construction in progress 7,325,833 5,084,273 (6,249,825) 6,160,281
Total Capital Assets, not being depreciated 24,435,549 5,098,588 (6,249,825) 23,284,312
Capital Assets, being depreciated:
Buildings 31,214,716 - - 31,214,716
Improvements other than buildings 28,805,408 1,294,150 - 30,099,558
Machinery and equipment 21,940,731 1,891,676 (945,757) 22,886,650
Infrastructure 200,416,890 4,246,562 - 204,663,452
Total Capital Assets, being depreciated 282,377,745 7,432,388 (945,757) 288,864,376
Less Accumulated Depreciation for:
Buildings (11,518,866) (696,544) - (12,215,410)
Improvements other than buildings (13,424,746) (1,983,340) - (15,408,086)
Machinery and equipment (15,200,822) (1,323,404) 749,769 (15,774,457)
Infrastructure (120,818,941) (3,628,525) - (124,447,466)
Total Accumulated Depreciation (160,963,375) (7,631,813) 749,769 (167,845,419)
Total Capital Assets, being depreciated, net 121,414,370 (199,425) (195,988) 121,018,957
Governmental activities capital assets, net $ 145,849,919 $ 4,899,163 $ (6,445,813) $ 144,303,269
47
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Beginning
Balances Increases Decreases
Ending
Balances
Business-type activities:
Capital Assets, not being depreciated:
Land $ 5,236,564 $ - $ (47,307) $ 5,189,257
Easements 67,374 - - 67,374
Construction in progress 665,370 1,971,440 (18,508) 2,618,302
Total Capital Assets, not being depreciated 5,969,308 1,971,440 (65,815) 7,874,933
Capital Assets, being depreciated:
Buildings 82,777,259 - - 82,777,259
Improvements other than buildings 14,294,858 18,507 - 14,313,365
Machinery and equipment 9,975,642 69,931 (91,554) 9,954,019
Distribution and Collection 73,914,684 639,602 - 74,554,286
Total Capital Assets, being depreciated 180,962,443 728,040 (91,554) 181,598,929
Less Accumulated Depreciation for:
Buildings (29,128,650) (1,830,837) - (30,959,487)
Improvements other than buildings (8,473,577) (932,853) - (9,406,430)
Machinery and equipment (8,413,679) (422,873) 91,554 (8,744,998)
Distribution and Collection (36,394,168) (1,969,613) - (38,363,781)
Total Accumulated Depreciation (82,410,074) (5,156,176) 91,554 (87,474,696)
Total Capital Assets, being depreciated, net 98,552,369 (4,428,136) - 94,124,233
Business-type activities capital assets, net $ 104,521,677 $ (2,456,696) $ (65,815) $ 101,999,166
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:Business-type activities:
General government $ 73,550 Wastewater $ 4,002,952
Public safety 1,281,991 Transit 147,042
Community development 4,387,244 Airport 960,050
Culture and recreation 1,889,026 Parking 46,132
Total depreciation expense-
Governmental activities $ 7,631,811
Total depreciation expense-
Business-type activities $ 5,156,176
48
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
NOTE 7: LONG-TERM DEBT
A. Bonds Payable
The following is a summary of bonded debt transactions of the City for the year ended October 31, 2022:
Wastewater Parks Total
Bonds payable at 10/31/21 $ 41,181,600 $ 6,695,000 $ 47,876,600
Bonds retired (4,496,000) (295,000) (4,791,000)
Bonds payable at 10/31/22 $ 36,685,600 $ 6,400,000 $ 43,085,600
Deferred amounts:
Premiums/Discounts 880,636 140,269 1,020,905
Net bonds payable at 10/31/22 $ 37,566,236 $ 6,540,269 $ 44,106,505
Interest to maturity 6,374,249 1,562,698 7,936,947
Total Debt Service to Maturity $ 43,940,485 $ 8,102,967 $ 52,043,452
Bonds Payable
The annual debt service requirements to maturity, including interest (excluding amortization of premiums and/or discounts) on all
bonded debt outstanding as of October 31, 2022 are as follows:
Principal Interest Total Principal Interest Total Principal Interest Total
2023 3,292,800$ 1,032,840 4,325,640$ 300,000$ 166,768$ 466,768$ 3,592,800$ 1,199,608$ 4,792,408$
2024 3,409,700 921,936 4,331,636 310,000 157,768 467,768 3,719,700 1,079,704 4,799,404
2025 3,527,500 809,877 4,337,377 320,000 148,468 468,468 3,847,500 958,345 4,805,845
2026 3,290,400 690,893 3,981,293 330,000 138,868 468,868 3,620,400 829,761 4,450,161
2027 2,619,200 586,016 3,205,216 340,000 128,968 468,968 2,959,200 714,984 3,674,184
2028-2032 13,253,000 1,898,042 15,151,042 1,840,000 505,889 2,345,889 15,093,000 2,403,931 17,496,931
2033-2037 7,293,000 434,645 7,727,645 2,060,000 279,607 2,339,607 9,353,000 714,252 10,067,252
2038-2042 - - - 900,000 36,362 936,362 900,000 36,362 936,362
Totals 36,685,600$ 6,374,249$ 43,059,849$ 6,400,000$ 1,562,698$ 7,962,698$ 43,085,600$ 7,936,947$ 51,022,547$
Wastewater Debt Service Requirements Parks Debt Service Requirements Total Debt Service Requirements
Pledged Revenues
The City has pledged future sanitary sewer operating revenues, net of specified operating expense, to repay $36,685,600 in sanitary
sewerage system revenue bonds. The Wastewater bonds are payable solely from sanitary sewer net revenues and are payable through
2036. Annual principal and interest payments on the bonds have required on average between 80 and 90 percent of net revenues. The
total principal and interest remaining to be paid on wastewater bonds is $43,059,849. Principal and interest paid for the current year
and total net sanitary sewer revenues for the current year were $5,501,179 and $6,758,901, respectively.
The payment of the principal and interest on the Series 2019 parks system special obligation bonds is subject to annual appropriations
by the City Council. Pursuant to the Bond Ordinance, the City Council has directed the City Administrator, the Director of Finance or
any other officer of the City at any time charged with the responsibility of formulating budget proposals to include in each annual
budget appropriation of the amount necessary (after taking into account any moneys legally available for such purpose) to pay debt
service on the Bonds. However, the City Council is not required or obligated to make any such annual appropriation and the decision
whether or not to appropriate such funds will be solely within the discretion of the then current City Council. No property of the City
is pledged or encumbered, and no reserve fund has been established, as security for payment of the Bonds. It is the current intention
of the City to satisfy its obligations to make debt service payments on the Parks Bonds, subject to annual appropriation by the City
Council, from revenues generated by the City’s 0.50% local parks sales tax. However, the City’s obligation to make such debt service
payments is not limited to the revenues generated from the 0.50% local parks sales tax, and such 0.50% local parks sales tax revenues
cannot be pledged to the payment of the Bonds.
49
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Wastewater Revenue Bonds payable at October 31, 2022 are comprised of the following individual issues:
$ 4,600,000 Sewerage System Revenue Bond (State Revolving Fund-Leveraged Loan
Program) Series 2005A payable in annual installments of $135,000 to $345,000, May 19,
2005 through July 1, 2025; interest at 3% -5%$ 990,000
$10,105,000 Sewerage System Revenue Bond (State Revolving Fund-Leveraged Loan
Program) Series 2005C payable in annual installments of $335,000 to $750,000, November
30, 2005 through July 1, 2026; interest at 3.25% -5.25%2,805,000
$ 3,900,000 Sewerage System Revenue Bond (State Revolving Fund-Leveraged Loan
Program) Series 2008A payable in annual installments of $25,000 to $320,000, October 30.
2008 through January 1, 2029; interest at 4% -5.75%1,890,000
$15,000,000 Sewerage System Revenue Bond (State Revolving Fund-Direct Loan
Program) Series 2012 payable in semi-annual installments of $307,000 to $473,000, July 1,
2014 through July 1, 2033 average coupon interest 1.27%; due to the nature of the Direct
Loan Program $549,866 of the authorized amount of this bond is not yet issued 9,185,600
$9,940,000 Sewerage System Revenue Bond Series 2014 payable in annual installments
of $410,000 to $675,000, May 15, 2014 through July 1, 2035; interest at 2% - 3.5%7,310,000
$9,380,000 Sewerage System Revenue Bond Series 2016 payable in annual installments
of $550,000 to $805,000, June 20, 2016 through July 1, 2036; interest at 3%9,380,000
$5,625,000 Sewerage System Improvement and Refunding Revenue Bond Series 2020
payable in annual installments of $245,000 to $445,000, September 1, 2021 through
September 1, 2035; interest at 2% - 4%5,125,000
Total bonded indebtedness in enterprise funds $ 36,685,600
There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all
significant limitations and restrictions.
On November 7, 2000 voters approved $52,000,000 of Sewerage System Revenue Bonds for improving and extending the City’s
sewerage system. The cost of operation and maintenance of the sewerage system is to be paid solely from the revenues derived by the
City from the operation of its sewer system. A 29% increase in sewer fees was effective June 1, 2001 with an additional 4% increase
annually for 9 years was required to finance the proposed sewer projects. On July 6, 2009 the Council approved an additional 27%
increase in sewer fees effective June 1, 2010 in lieu of the 4%. On November 2, 2010 the voters approved issuance of Sewerage
System Revenue Bonds in the amount of $35,000,000 to finance the sanitary sewer system improvements from 2011 through 2017.
This change increased the charges to customers 5% annually from 2011 through 2014, and 6% annually from 2015 through 2017. On
June 7, 2021 the Council approved an additional 2% increase in sewer fees effective July 1, 2021 and increased the charges to
customers 5% annually from 2022 through 2027.
The initial $10,000,000 Sewerage System Revenue Bond was refunded in November 2001, creating a $24,875,000 Revenue Bond
(State Revolving Fund Program) Series 2001C. An additional Sewerage System Revenue Bond, Series 2002 in the amount of
$5,555,000 was issued in November 2002 and Series 2005A in the amount of $4,600,000 in May 2005. On November 30, 2005 the
City refunded the balance ($4,980,000) of the $5,555,000 November 2002 issue, creating a $10,105,000 Sewerage System Revenue
Bond (State Revolving Fund Program) Series 2005C. Another Sewerage System Revenue Bond, Series 2008A in the amount of
$3,900,000 was issued in October 2008. On August 5, 2010 the City issued additional Sewerage System Revenue Bonds: Series
2010A (tax exempt) in the amount of $1,300,000 and Series 2010B (taxable Build America Bonds) in the amount of $6,445,000. On
November 13, 2012 the City issued an additional Sewerage System Revenue Bond (State Revolving Fund Program) Series 2012 in the
amount of $15,000,000. On May 15, 2014 the City issued an additional Sewerage System Revenue Bond Series 2014 in the amount
of $9,940,000. On June 20, 2016 the City issued an additional Sewerage System Revenue Bond Series 2016 in the amount of
$9,380,000. These bond issues in the amount of $85,545,000 are part of $52,000,000 approved by the voters in November 2000 and
the $35,000,000 approved by voters in November 2010. On August 24, 2020 the City refunded the balance ($6,015,000) of the
50
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
$6,445,000 Series 2010B (taxable Build America Bonds) issue, creating a $5,625,000 Sewerage System Refunding Revenue Bond
Series 2020.
All of the City’s Wastewater Revenue Bonds, with the exception of the 2010A, 2010B, 2014, 2016, and 2020 bonds, were participants
in the State of Missouri Department of Natural Resources (DNR) Revolving Fund-Leverage Loan Program (Capitalization Grant
Agreement.) The Revolving Fund Program provides security for the revenue bonds participating in the program. As disbursements
are made to the City from the restricted construction bond funds, DNR deposits additional funds into a Reserve Account. Funds on
deposit in the Reserve Account (other than interest earnings) secure only a portion of the revenue bonds (70%). As the City makes
principal payments on the related revenue bonds, an equivalent amount is repaid to DNR from the Reserve Account. The City assigns
its right, title and interest in the Reserve Account to the State Environment Improvement and Energy Resources Authority to secure
the City’s Wastewater Revenue Bonds.
Parks Special Obligation Bond payables at October 31, 2022 are comprised of the following individual issues:
$7,305,000 Parks System Special Obligation Bond Series 2019 payable in annual
installments of $285,000 to $455,000, September 1, 2020 through September 1, 2039;
interest at 2% - 3%6,400,000$
Total special obligation bond indebtedness in governmental funds 6,400,000$
On November 18, 2019 Council approved the issuance of a Special Obligation Bond for Parks and Recreation for the purpose of
financing various repairs, replacements, improvements, renovations, expansions and additions that need to be made to the City’s Parks
System.
B. General Obligation Debt
The City has no outstanding general obligation bonded debt. The legal debt margin (the amount of general obligation bonds the City
could issue with voter approval) at October 31, 2022 is computed as follows:
Total 2021 Assessed Value $ 936,659,522
Ordinary debt (1)10% 93,665,952
Additional debt (2)10%93,665,952
Constitutional debt limit 20%187,331,904
Less: Current G.O. Bonds -
Available debt margin $ 187,331,904
(1) Article VI, Sections 26(b) and (c) of the Missouri Constitution provides, with a vote of four-sevenths of qualified electors voting at
a general municipal election day, primary or general election day or two-thirds for all other elections, a city may incur an indebtedness
not to exceed in aggregate, 10 percent of the value of taxable tangible property of the city, for any purposes authorized in the charter
of the city or by any general law of the State of Missouri.
(2) Article VI, Sections 26(d) and (e) of the Missouri Constitution provides, with a vote of four-sevenths of qualified electors voting at
a general municipal election day, primary or general election day or two-thirds for all other elections, a city may become indebted an
additional 10 percent of the value of taxable tangible property of the city for the purpose of acquiring right of way; construction,
extending and improving streets and/or sanitary or sewer systems; and purchasing or constructing water works, electric or other light
plants, provided that the total general obligation indebtedness of the city does not exceed 20 percent of the value of the taxable
tangible property of the city.
C. Changes in Long-term Liabilities
Long-term liability activity for the year ended October 31, 2022, was as follows:
51
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Governmental Activities:
Beginning
Balances Additions Reductions
Ending
Balances
Due Within
One Year
Note Payable $ 2,811,330 $- $ (330,141) $ 2,481,189 $ 388,577
Bonds Payable:
Special Obligation Bonds 6,695,000 - (295,000) 6,400,000 300,000
Less Deferred Amounts:
For Issuance Premiums 148,602 - (8,333) 140,269 -
Total Bonds Payable 6,843,602 - (303,333) 6,540,269 300,000
Claims and Judgements 761,068 5,478,948 (5,115,487) 1,124,529 303,623
Compensated Absences 2,751,181 2,564,706 (2,268,964) 3,046,923 274,223
Total OPEB Liability 1,747,607 - (295,165) 1,452,442 -
Net Pension Liability (Asset)(16,966,168) 9,437,571 - (7,528,597) -
Governmental Activity Long-term Liabilities $ (2,051,380) $ 17,481,225 $ (8,313,090) $ 7,116,755 $ 1,266,423
Business-type Activities:
Bonds Payable:
Revenue Bonds $ 41,181,600 $- $ (4,496,000) $ 36,685,600 $ 3,292,800
Less Deferred Amounts:
For Issuance Premiums 1,002,739 - (122,103) 880,636 -
Total Bonds Payable 42,184,339 - (4,618,103) 37,566,236 3,292,800
Claims and Judgements - 52,886 (52,886) - -
Compensated Absences 467,609 432,606 (438,398) 461,817 41,564
Total OPEB Liability 345,904 - (64,481) 281,423 -
Net Pension Liability (Asset)(6,030,408) 1,478,485 - (4,551,923) -
Business-type Activity Long-term Liabilities $ 36,967,444 $ 1,963,977 $ (5,173,868) $ 33,757,553 $ 3,334,364
Compensated absences in both governmental and business-type activities are classified as 91% long-term and 9% short-term
liabilities. Accrued compensated absence liabilities, net pension liabilities, and OPEB liabilities related to governmental activities are
generally liquidated by the General Fund and the Parks Fund.
Claims and judgments other than workers compensation in both governmental and business-type activities are classified as 73% long-
term and 27% short-term liabilities. Claim liabilities related to governmental and business-type activities are normally paid from the
fund associated with that claim. Claim liabilities for workers compensation are classified as 100% short-term liabilities in the
government activities (workers compensation self-insured fund.)
D. Note Payable
On May 19, 2017 the City entered into a note in the amount of $5,037,541 for the purchase of fire apparatus. The City of Jefferson
made $400,000 ($330,141 in principal and $69,859 in interest) in note payments during the fiscal year.
The annual debt service requirements to maturity, including interest on this outstanding debt as of October 31, 2022 are as follows:
52
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Principal Interest Total
2023 $ 388,577 $ 61,655 $ 450,232
2024 398,233 51,999 450,232
2025 408,129 42,104 450,233
2026 418,270 31,962 450,232
2027 428,664 21,568 450,232
2028 439,316 10,916 450,232
Totals $ 2,481,189 $ 220,204 $ 2,701,393
Fire Apparatus Debt Service Requirements
E. Postretirement Benefits Other than Pensions (OPEB)
General Information about the Pension Plan
Plan Description and Benefits Provided
The City sponsors a single-employer, defined benefit healthcare plan that provides healthcare benefits to retirees and their dependents.
The City requires retirees to pay the same medical premium charged for active employees. Under the theory that retirees have higher
utilization of services, the difference between the true cost of providing retiree coverage and what the retiree is being charged is
known as the implicit rate subsidy, which is considered Other Postemployment Benefits (OPEB) under GASB Statement No. 45. No
assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
Employees Covered by Benefit Terms
At October 31, 2022, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 20
Inactive employees entitled but not yet receiving benefits -
Active employees 403
423
Total OPEB Liability
The employer’s total OPEB liability of $1,733,865 was measured as of October 31, 2022, and determined by an actuarial valuation as
of that date.
Actuarial Assumptions
The total OPEB liability was “rolled forward” from October 31, 2020 to October 31, 2022 using generally accepted actuarial
principles.
The total OPEB liability in the October 31, 2022 actuarial valuation was determined using the following actuarial assumptions and
other inputs, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate 4.62%
Inflation 2.75% wage inflation
Salary Increase 2.75% to 7.15% including wage inflation
Investment Rate of Return 4.00%, net of OPEB plan investment expense, including inflation
Healthcare Trend Rates Initial trend of 7.00% gradually decreasing to an ultimate trend rate of 3.50% in year 15
Retirees’ Share of Benefit-
Related Costs 100 percent of projected health insurance premiums for retirees
53
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
The discount rate of 4.62% was based on the tax-exempt municipal bond rate based on an index of 20-year general obligation bonds
with an average AA credit rating as of the measurement date. For the purpose of this valuation, the rate was based on the weekly rate
closest to but not later than the measurement date of the Fidelity “20-Year Municipal GO AA index”.
The healthy retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115% of the PubG-
2010 Retiree Mortality Table for males and females. The disabled retiree mortality tables, for post-retirement mortality, used in
evaluating the allowances to be paid were 115% of the PubNS-2010 Disabled Retiree Mortality Table for males and females. The pre-
retirement mortality tables used were 75% of the PubG-2010 Employee Mortality Tables for males and females of General groups and
75% of the PubS-2010 Employee Mortality Table for males and females of Police, Fire, and Public Safety groups.
Mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scale to the above
described tables.
Unless otherwise specified, the actuarial assumptions used in making the October 31, 2022 valuation were based on a 5-year
investigation of Missouri Local Government Employees Retirement System (LAGERS) in total for the period ending February 28,
2020.
Changes in Total OPEB Liability
Total OPEB
Liability
Balances as of 10/31/21 2,093,511$
Changes for year:
Service Cost 106,552
Interest 45,098
Changes of assumptions (412,840)
Benefit payments, including refunds (98,456)
Net changes (359,646)
Balances as of 10/31/22 1,733,865$
Changes of assumptions reflect a change in the discount rate from 2.15 percent in 2021 to 4.62 percent in 2022.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB Liability of the employer, calculated using the discount rate of 4.62%, as well as what the
employer’s total OPEB Liability would be using a discount rate that is 1 percentage point lower (3.62%) or one percentage point
higher (5.62%) than the current rate.
1% Decrease
3.62%
Current Single Discount
Rate Assumption
4.62%
1% Increase
5.62%
Total OPEB Liability $ 1,890,946 $ 1,733,865 $ 1,590,456
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB Liability of the employer, calculated using the healthcare cost trend rate, calculated using the
assumed trend rates as well as what the plan’s total OPEB liability would be if it were calculated using a trend rate that is one percent
lower or one percent higher.
54
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
1% Decrease
Current Healthcare Cost
Trend Rate
Assumption 1% Increase
Total OPEB Liability $ 1,521,973 $ 1,733,865 $ 1,985,267
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended October 31, 2022 the employer recognized an OPEB expense of $17,840. At October 31, 2022, the employer
reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ - $ 322,664
Changes in assumptions 392,860 408,162
Net difference between projected and actual earnings
on OPEB plan investments - -
$ 392,860 $ 730,826
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended:
2023 $ (35,353)
2024 (35,353)
2025 (35,353)
2026 (35,353)
2027 (35,353)
Thereafter (161,201)
$ (337,966)
F. Conduit Debt Obligations
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the
acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the
property financed and are payable solely from payments received on the underlying financing arrangement. Upon repayment of the
bonds, ownership of the acquired facilities transfer to the private-sector entity served by the bond issuance. Neither the City, the State,
nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported
as liabilities in the accompanying financial statements.
The aggregate amount of all outstanding conduit debt as of October 31, 2022 was $37,952,943. As of this date, taxable industrial
revenue bonds were issued as follows:
Continental Commercial Products Project, Series 2015A, in the maximum aggregate principal amount of $1,734,000 for the purpose
of providing funds to renovate, improve and equip an existing building, which is located within the City, for manufacturing purposes
As of October 31, 2022 the principal amount outstanding was $1,734,000.
Continental Commercial Products Project, Series 2015B, in the maximum aggregate principal amount of $500,000 for the purpose of
providing funds to renovate, improve and equip an existing building, which is located within the City, for manufacturing purposes. As
of October 31, 2022 the principal amount outstanding was $500,000.
55
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Modern Litho Project, Series 2016, in the maximum aggregate principal amount of $8,000,000 for the purpose of providing funds to
pay the cost of acquiring and installing certain manufacturing equipment which is located within the City. As of October 31, 2022 the
principal amount outstanding was $8,000,000.
Axium Plastics Project, Series 2017A, in the maximum aggregate principal amount of $6,000,000 for the purpose of providing funds
to pay the cost of acquiring real property and making certain real property improvements to the project site which is located within the
City. As of October 31, 2022 the principal amount outstanding was $1,000,399.
Axium Plastics Project, Series 2017B, in the maximum aggregate principal amount of $20,000,000 for the purpose of providing funds
to equip the project site, which is located within the City, with certain personal property. As of October 31, 2022 the principal amount
outstanding was $13,210,165.
Command Web Project, Series 2018, in the maximum aggregate principal amount of $34,250,000 for the purpose of acquiring certain
machinery and equipment to be installed at the manufacturing facility which is located within the City. As of October 31, 2022 the
principal amount outstanding was $9,156,471.
Modern Litho Project, Series 2019, in the maximum aggregate principal amount of $5,000,000 for the purpose of providing funds to
pay the cost of acquiring and installing certain manufacturing equipment which is located within the City. As of October 31, 2022 the
principal amount outstanding was $4,351,908.
Subsequent Events
On December 1, 2022 the City issued Industrial Development Revenue Bonds (JCMG – Real Property Project), Series 2022, in the
maximum aggregate principal amount of $15,700,000 for the purpose of acquiring real property and constructing a stand-alone outpatient
surgery center on said real property which is located within the City.
On December 1, 2022 the City issued Industrial Development Revenue Bonds (JCMG – Personal Property Project), Series 2022, in the
maximum aggregate principal amount of $2,100,000 for the purpose of acquiring and installing certain equipment and other personal
property within the JCMG – Real Property Project which is located within the City.
On February 1, 2023 the City issued Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023, in the maximum
aggregate principal amount of $44,700,000 for the purpose of acquiring and installing a new conveyor system, automation equipment, other
machinery and personal property at an existing facility which is located within the City.
NOTE 8: COMMITMENTS AND CONTINGENT LIABILITIES
A. Risk Management
The City of Jefferson, Missouri is exposed to 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 has purchased insurance up to $5 million for these risks from
Midwest Public Risk (MPR), except for worker's compensation described below. There have been no settlements in excess of insured
coverage during the past five years. In 2001, the City established a $50,000 self-insured retention with a $250,000 shared annual
aggregate for liability coverage. In 2015, the City reduced the self-insured retention to $25,000 with no shared annual aggregate for
liability coverage.
The Midwest Public Risk Fund is structured such that member premiums are based on an actuarial review that will provide adequate
reserves to allow the Fund to meet its expected financial obligations. The Fund has the authority to assess its members’ additional
premiums should reserves and annual premiums be insufficient to meet the Fund’s obligations.
Other commercial policies are purchased from various vendors for Property and Equipment, Excess Property, Boiler and Machinery,
Commercial Crime, Excess Workers Compensation, and Airport Owners and Operators Liability.
In the area of loss prevention and control, the City has contracted for services through a commercial insurance company and a
professional broker. The City has also instituted internal safety and supervisory training programs designed to minimize risk exposure
and claims.
The claims liability of $0 reported at October 31, 2022 is based on the requirements of Governmental Accounting Standards Board
56
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements
indicates it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated. The claims liabilities do not include incremental claims adjustment expenses.
Total Total
Beginning liability $- $- $ - Beginning liability $ - $ - $ -
Claims & changes
in estimates 63,924 52,886 116,810
Claims & changes
in estimates 55,849 13,563 69,412
Claims payments (63,924) (52,886) (116,810) Claims payments (55,849) (13,563) (69,412)
Ending liability $- $- $ -
Ending liability $- $ - $ -
Governmental
activities
Business-type
activities
Fiscal Year Ending October 31, 2022 Fiscal Year Ending October 31, 2021
Governmental
activities
Business-type
activities
B. Worker’s Compensation Risk Management
On July 1, 1991, the City established a Worker's Compensation Risk Management Fund (an internal service fund) to account for and
finance its uninsured risks of this loss. Under this program, the Risk Management Fund provides coverage for up to a maximum of
$500,000 for each worker's compensation claim. The City purchases commercial reinsurance for claims in excess of individual
coverage provided by the Fund (Stop Loss $500,000 individual with a policy maximum of $1 million).
Payments are made to the Risk Management Fund based on payroll at State of Missouri Worker's Compensation rates which are
estimates of the amounts needed to pay prior- and current-year claims and to build an unreserved fund balance. That balance was
$294,418 at October 31, 2022. The claims liability of $659,177 reported in the Fund at October 31, 2022 is based on the requirements
of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information
prior to the issuance of the financial statements indicates it is probable that a liability has been incurred at the date of the financial
statements and the amount of the loss can be reasonably estimated.
Changes in the fund’s claims liability amount are as follows:
Due within One Year
Beginning liability $ 456,632 $ 381,243
Claims & changes in
estimates 550,637 528,604
Claims payments (348,092) (453,215)
Ending liability $ 659,177 $ 456,632 $ 177,978
2021-2022 2020-2021
C. Self-Funded Health Insurance
On January 1, 2016, the City established a Self-Funded Health Insurance Fund (an internal service fund) to account for the
transactions and reserves associated with the City’s medical and prescription drug programs for City employees. Coverage for health
and prescription drug plans are self-insured. The City has a stop-loss attachment point of $125,000 per individual with a policy
maximum of $6,745,271.
Payments are made to the Self-Funded Health Insurance Fund based on estimates of the amounts needed to pay prior- and current-year
claims and to establish net position sufficient for catastrophic losses. That balance was $121,331 at October 31, 2022. The claims
liability of $465,352 reported in the Fund at October 31, 2022 is based on the requirements of Governmental Accounting Standards
Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial
statements indicates it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss
can be reasonably estimated.
Changes in the fund’s claims liability amount are as follows:
57
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Due within One Year
Beginning liability $ 304,436 $ 382,011
Claims & changes in
estimates 4,864,387 5,297,741
Claims payments (4,703,471) (5,375,316)
Ending liability $ 465,352 $ 304,436 $ 465,352
2021-2022 2020-2021
D. Litigation
The City is a defendant in a number of claims and lawsuits resulting from personal injury, property damage, personnel actions, and
police activity. The City Attorney has reviewed these claims and lawsuits in order to evaluate the likelihood of an unfavorable
outcome to the City and to arrive at an estimate, if any, of the amount or range of potential loss to the City. The City Attorney has
reviewed lawsuits involving various departments and allegations, which are currently pending. The chances of the plaintiff’s success
in these cases vary. The amount of any recovery payable from City funds should be $315,000 or less. A number of other claims
involving vehicles and property damage, and alleged dangerous conditions have been reviewed. Most have been resolved or are in the
process of being resolved. While most are covered by insurance, some may have deductibles, self-insured retention, or other
circumstances which involve payment from City funds. The total from all of the above claims of this nature should not cause payment
from City funds of an amount greater than $45,000. No significant adverse impact beyond budgeted funds is anticipated from any of
the pending claims or litigation.
E. Commitments
At October 31, 2022, the following funds have construction and other significant commitments:
Primary Government Commitment
General Fund $ 845,249
Parks Fund $ 437,959
Capital Projects $ 1,898,469
Transit Fund $ 111,068
Wastewater Fund $ 349,109
Non Major Funds $ 15,762
F. Grants and Other
Under the terms of federal and state grants, periodic audits are required and certain costs may be questioned as not being appropriate
expenditures under the terms of the grants. Such audits could lead to reimbursement to the grantor agencies. City management
believes disallowances, if any, will be immaterial to its financial position and operations.
NOTE 9: INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The General Fund transfers to subsidize Airport and Transit ($300,389); Lodging Tax Fund 2% administrative fee ($28,920) transfer
to the General Fund; Capital Projects ($91,148) transfers to the Transit and Airport Funds; Public Safety Tax Fund ($480,032)
transfers to the General Fund; and General Fund ($439,494) transfers to the Parks, Airport, Parking, Transit and Wastewater Funds to
subsidize purchases for the year ended October 31, 2022 are as follows:
58
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
General Fund $ 508,951 $ 739,883
Parks Fund 118,415 -
Capital Projects - 91,148
Public Safety Tax Fund - 480,032
Transit Fund 399,206 -
Wastewater Fund 91,503 -
Non Major Governmental Funds - 28,920
Non Major Enterprise Funds 221,908 -
$ 1,339,983 $ 1,339,983
Transfer from
other funds
Transfer to
other funds
Discretely Presented Component Unit:
The Jefferson City Convention and Visitors Bureau’s (JC CVB) is a discretely presented component unit of the City of Jefferson
with a fiscal year end of December 31. The City’s lodging tax fund payable to JC CVB of $299,311 at October 31, 2022 is
different from their receivable of $184,707 at December 31, 2021 because of the different fiscal year ends.
NOTE 10: EMPLOYEES' RETIREMENT SYSTEMS
A. LAGERS
Summary of Significant Accounting Policies
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the Missouri Local Government Employees Retirement
System (LAGERS) and additions to/deductions from LAGERS fiduciary net position have been determined on the same basis as they
are reported by LAGERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
General Information about the Pension Plan
Plan Description
The City of Jefferson’s defined benefit pension plan provides certain retirement, disability and death benefits to plan members and
beneficiaries. The City of Jefferson 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.
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 and fire) 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 fire) and receive a reduced allowance.
59
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
2022 Valuation
Benefit Multiplier: 2% - General & Police; 2.5% - Fire
Final Average Salary: 3 years
Member Contributions: 0%
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.
Employees Covered by Benefit Terms
At June 30, 2022, the following employees were covered by the benefit terms:
General Police Fire
Inactive employees or beneficiaries currently receiving benefits 215 57 79
Inactive employees entitled but not yet receiving benefits 94 41 5
Active employees 249 73 73
558 171 157
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 do not contribute to the pension
plan. Employer contribution rates are 13.8% (General), 19.0% (Police) and 49.0% (Fire) of annual covered payroll.
Net Pension Liability
The employer’s net pension liability was measured as of June 30, 2022 and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of February 28, 2022.
Actuarial Assumptions
The total pension liability in the February 28, 2022 actuarial valuation was determined using the following actuarial assumptions,
applied to all periods included in the measurement:
Inflation 2.75% wage inflation; 2.25% price inflation
Salary Increase 2.75% to 7.15% including wage inflation
Investment rate of return 7.00%, net of investment expenses
The healthy retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were 115% of the PubG-
2010 Retiree Mortality Table for males and females. The disabled retiree mortality tables, for post-retirement mortality, used in
evaluating allowances to be paid were 115% of the PubNS-2010 Disabled Retiree Mortality Table for males and females. The pre-
retirement mortality tables used were 75% of the PubG-2010 Employee Mortality Table for males and females of General groups and
75% of the PubS-2010 Employee Mortality Tables for males and females of Police, Fire and Public Safety groups.
Mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scale to the above
described tables.
The long-term expected rate of return on pension plan investments was determined using a model method in which the best-estimate
ranges of expected future real rates of return (expected returns, net of investment expenses and inflation) are developed for each major
asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic
real rates of return for each major asset class are summarized in the following table:
60
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Asset Class
Target
Allocation
Equity 35.00%
Fixed Income 31.00%
Real Assets 36.00%
Strategic Assets 8.00%
Alpha Portfolio** 15.00%
Cash Portfolio* 10.00%
Leverage Portfolio* -35.00%
*LAGERS targets 30% of the leverage portfolio to be held in cash.
**Alpha Portfolio allocation is based on a volatility adjusted exposure targeting 8% overall.
Discount Rate
The discount rate used to measure the total pension liability is 7.00%. 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.
Changes in Net Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability
(a-b)
Balances as of 6/30/21 160,769,234$ 183,765,810$ (22,996,576)$
Changes for year:
Service Cost 2,928,291 - 2,928,291
Interest 11,087,188 - 11,087,188
Changes of Benefit Terms - - -
Difference between expected & actual experience (667,047) - (667,047)
Changes of assumptions - - -
Contributions - employer - 4,609,400 (4,609,400)
Contributions - employee - - -
Net investment income - 137,513 (137,513)
Benefit payments, including refunds (7,771,861) (7,771,861) -
Administrative expenses - (94,801) 94,801
Other changes - (2,219,736) 2,219,736
Net changes 5,576,571 (5,339,485) 10,916,056
Balances as of 6/30/22 166,345,805$ 178,426,325$ (12,080,520)$
Increase (Decrease)
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 7.00%, as well as what the
employer’s Net Pension Liability would be using a discount rate that is 1 percentage point lower (6.00%) or one percentage point
higher (8.00%) than the current rate.
61
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
1% Decrease
6.00%
Current Single Discount
Rate Assumption
7.00%
1% Increase
8.00%
Total Pension Liability (TPL) $ 188,915,465 $ 166,345,805 $ 147,694,125
Plan Fiduciary Net Position 178,426,325 178,426,325 178,426,325
Net Pension Liability/(Asset) (NPL) $ 10,489,140 $ (12,080,520) $ (30,732,200)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended October 31, 2022 the employer recognized pension expense of ($4,885,548). The employer reported deferred
outflows and inflows of resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences in experience $ 2,963,676 $ (5,204,681)
Differences in assumptions 406,162 (1,562,644)
Excess (deficit) investment returns - (4,015,242)
Contributions subsequent to the measurement date* 1,697,062 -
$ 5,066,900 $ (10,782,567)
*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 October 31, 2023.
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended:
2023 $ (2,448,995)
2024 (2,899,482)
2025 (4,406,033)
2026 2,185,918
2027 148,334
Thereafter 7,529
$ (7,412,729)
Payable to the Pension Plan
At October 31, 2022, the City of Jefferson reported a payable of $0 for the outstanding amount of contributions to the pension plan
required for the year ended October 31, 2022.
NOTE 11: DEPARTMENT DISCLOSURES
For the year ending October 31, 2022, there were no departments (the legal level of budgetary control) in the governmental funds
where expenditures exceeded appropriations.
NOTE 12: TAX ABATEMENT
The City of Jefferson can grant tax abatements as outlined below:
62
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
Chapter 100 – Industrial Revenue Bonds: In Missouri, cities and counties ("Municipality") can issue industrial development
revenue bonds ("Revenue Bonds") pursuant to Chapter 100 of the Missouri Revised Statutes ("RSMo"), as amended (the "Act"), in
order to encourage industrial development projects for private companies. Under the Act, the Municipality may issue Revenue Bonds
to finance the costs of the purchase, construction, extension and improvement of warehouses, distribution facilities, research and
development facilities, office industries, agricultural processing industries, service facilities which provide interstate commerce, and
industrial plants, including the real estate either within or without the limits of such Municipality, buildings, fixtures and machinery
(the "Project"). There are two primary reasons to issue Revenue Bonds under the Act. First, if the Revenue Bonds are tax-exempt, it
may be possible to issue the Revenue Bonds at lower interest rates than those obtained through conventional financing. Second, even
if the Revenue Bonds are not tax-exempt, ad valorem taxes levied on the Revenue Bond financed Project may be abated so long as the
Revenue Bonds are outstanding.
In a typical Chapter 100 transaction, the Municipality holds fee title to the Project once the Revenue Bonds are issued and leases the
Project to the private company. Because the Municipality is the legal owner of the Project while the Revenue Bonds are outstanding,
the Project is exempt from ad valorem taxation and personal property taxation. The Municipality and the private company may
determine that partial tax abatement - but not full tax abatement is desirable. In this case, the Municipality and the private company
will enter into an agreement providing for the company to make "payments in lieu of taxes" to the Municipality and other taxing
jurisdictions levying property taxes where the Project is located. The amount of payments in lieu of taxes to be paid by the private
company is negotiable to any amount. The payments in lieu of taxes are payable by December 31 of each year and are distributed to
the Municipality and to each taxing jurisdiction levying property taxes where the Project is located in the same manner and proportion
as the property taxes would otherwise be distributed to such taxing jurisdictions under Missouri law. Section 100. 800 of the RS Mo
does provide for the recapture of abated taxes in the event an abatement recipient does not fulfill the commitment it makes in return
for the tax abatement.
For the fiscal year ended October 31, 2022, the City abated property taxes totaling $40,845 under these Chapter 100 financing
agreements.
Tax Increment Financing: Pursuant to the Real Property Tax Increment Allocation Act, Sections 99.800 through 99.865, RSMo, as
amended (the "TIF Act"), cities and counties ("Municipality") may adopt a redevelopment plan ("TIF plan") that provides for the
redevelopment of a "blighted area", "conservation area" or "economic development area," located within the boundaries of the
Municipality. The theory of TIF financing is that, by encouraging redevelopment projects, the value of real property in a
redevelopment area should increase.
When the TIF plan is adopted, the assessed valuation of the real property in the redevelopment area is frozen at the current base level
prior to construction of improvements. The owner of the property continues to pay property taxes at the base level and such property
tax revenues are distributed to the taxing jurisdictions levying property taxes in the redevelopment area. As the property is improved,
the assessed value of the real property in the redevelopment area increases above the base level. By applying the property tax levy of
all taxing jurisdiction having taxing power within the redevelopment area to the increase in assessed valuation of the improved real
property over the base level, a "tax increment" is produced. The tax increments, referred to as "payments in lieu of taxes," are paid by
the owner of the real property in the same manner as regular property taxes. The payments in lieu of taxes are transferred by the
collecting agency to the treasurer of the Municipality and deposited in a special allocation fund.
In addition to the payments in lieu of taxes described above, and pursuant to Section 99.845(3) of the Act, fifty percent of the total
additional revenue from taxes which are imposed by the City, the County or other taxing districts, and which are generated by
economic activities within the redevelopment area over the amount of such taxes generated by economic activities within the
redevelopment prior to the TIF plan, are transferred by the collecting agency to the treasurer of the Municipality and deposited in a
special allocation fund.
For the fiscal year ended October 31, 2022, the City abated property taxes and economic activity taxes totaling $117,616 under these
Tax Increment Financing agreements.
Chapter 353 – Redevelopment Corporations: Under Chapter 353, RSMo, real property tax abatement is available within “blighted
areas.” An Urban Redevelopment Corporation is created under the corporations laws of Missouri and, once created, it has the power to
operate one or more redevelopment projects pursuant to a city-approved redevelopment plan.
With this program, an eligible city may approve a redevelopment plan that provides for tax abatement for up to 25 years, thus
encouraging the redevelopment of the blighted area. To be eligible for the abatement, the Urban Redevelopment Corporation must
63
City of Jefferson, Missouri
Notes to Financial Statements
October 31, 2022
take title to the property to be redeveloped. During the first 10 years of tax abatement, (1) 100% of the incremental increase in real
property taxes on the land are abated, (2) 100% of the real property taxes on all improvements are abated, and (3) the property owner
continues to pay real property taxes on the land in the amount of such taxes in the year before the redevelopment corporations takes
title.
During the next 15 years, taxes upon such real property shall be measured by the assessed valuation thereof as determined by the
county assessor upon the basis of not to exceed fifty percent of the true value of such real property, including any improvements.
Payments in lieu of taxes (PILOTS) may be imposed on the Urban Redevelopment Corporation by contract with the city, as
applicable, to achieve an effective tax abatement that is less than the abatement established by statute. PILOTS are paid on an annual
basis and allocated to each taxing district according to their proportionate share of ad valorem property taxes
For the fiscal year ended October 31, 2022, the City abated property taxes totaling $4,030 under these Chapter 353 financing
agreements.
The following tax abatement agreements each exceeded 10 percent of the City’s total taxes abated for fiscal year 2022:
A 100 percent property tax abatement and 50% economic activity tax abatement to the St. Mary’s TIF. In August 2017, the
City approved the tax increment plan for the St. Mary’s Redevelopment Area. The abatements amounted to $91,821.
NOTE 13: FUTURE ACCOUNTING PRONOUNCEMENTS
GASB Statement No. 91, Conduit Debt Obligations. The objective of this Statement is to provide a single method of reporting
conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2)
arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by
clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer;
establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by
issuers and arrangements associated with conduit debt obligations; and improving required disclosures. This statement is effective for
fiscal years beginning after December 31, 2022.
64
REQUIRED SUPPLEMENTARY
INFORMATION (RSI)
65
Fiscal year ending June 30,2022 2021 2020 2019 2018 2017 2016 2015Total Pension LiabilityService Cost 2,928,291$ 3,041,751$ 2,987,138$ 2,867,447$ 2,720,530$ 2,593,354$ 2,568,487$ 2,532,035$ Interest on the Total Pension Liability 11,087,188 11,660,763 10,977,905 10,366,008 8,939,085 8,591,220 7,967,490 7,661,827 Changes of Benefit Terms - - - - 14,534,542 - - - Difference between expected and actual experience (667,047) (6,467,285) 3,069,678 2,157,242 138,893 (867,154) (1,608,734) (1,694,178) Assumption Changes - (2,669,600) - - - - 4,236,574 - Benefit Payments (7,771,861) (8,138,083) (7,164,583) (6,859,851) (6,591,847) (4,606,460) (4,540,383) (4,070,926) Net Change in Total Pension Liability5,576,571 (2,572,454) 9,870,138 8,530,846 19,741,203 5,710,960 8,623,434 4,428,758 Total Pension Liability beginning160,769,234 163,341,688 153,471,550 144,940,704 125,199,501 119,488,541 110,865,107 106,436,349 Total Pension Liability ending166,345,805$ 160,769,234$ 163,341,688$ 153,471,550$ 144,940,704$ 125,199,501$ 119,488,541$ 110,865,107$ Plan Fiduciary Net PositionContributions-employer 4,609,400$ 4,392,191$ 4,321,101$ 4,346,691$ 4,836,810$ 4,188,777$ 4,151,922$ 4,368,344$ Contributions-legacy plan** - - - - 14,837,956 - - - Contributions-employee- - - - - 80,841 46,880 - Pension Plan Net Investment income137,513 40,085,007 1,928,351 9,046,050 15,419,234 12,130,427 (187,832) 1,902,415 Benefit Payments(7,771,861) (8,138,083) (7,164,583) (6,859,851) (6,591,847) (4,606,460) (4,540,383) (4,070,926) Pension Plan Administrative expense(94,801) (87,723) (115,087) (101,301) (70,768) (63,974) (60,825) (65,895) Other(2,219,736) 180,476 1,152,063 1,473,148 (943,532) 466,678 520,922 (328,829) Net Change in Plan Fiduciary Net Position(5,339,485) 36,431,868 121,845 7,904,737 27,487,853 12,196,289 (69,316) 1,805,109 Plan Fiduciary Net Position beginning183,765,810 147,333,942 147,212,097 139,307,360 111,819,507 99,623,218 99,692,534 97,887,425 Plan Fiduciary Net Position ending178,426,325$ 183,765,810$ 147,333,942$ 147,212,097$ 139,307,360$ 111,819,507$ 99,623,218$ 99,692,534$ Employer Net Pension Liability(12,080,520)$ (22,996,576)$ 16,007,746$ 6,259,453$ 5,633,344$ 13,379,994$ 19,865,323$ 11,172,573$ Plan Fiduciary Net Position as a percentage of the Total Pension Liability107.26% 114.30% 90.20% 95.92% 96.11% 89.31% 83.37% 89.92%Covered Payroll 21,226,111 21,022,492 22,326,544 21,201,296 20,525,788 19,360,321 18,743,450 18,925,302 Employer's Net Pension Liability as a percentageof covered payroll-56.91% -109.39% 71.70% 29.52% 27.45% 69.11% 105.99% 59.04%*Information for prior years is not available; ultimately ten fiscal years will be displayed.Schedule of Changes in Net Pension Liability and Related RatiosFor the Last Eight Fiscal Years***The City previously administered a closed Firemen's Pension Fund Plan. With the passing of H.B. 1443 (2016), the City chose to move the closed pension plan to LAGERS. These contributions are the assets of the closed Firemen's Penison Fund Plan that were moved to LAGERS as part of the transition.LAGERS - All Divisions CombinedCity of JeffersonRequired Supplementary InformationOctober 31, 202266
FY Ending October 31,
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially Required
Contribution
Contribution Deficiency
(Excess) Covered Payroll
Actual Contribution as a
% of Covered Payroll
2013 4,716,663 4,618,436 98,227 19,305,604 23.92%
2014 4,514,653 4,514,653 - 19,142,454 23.58%
2015 4,375,104 4,375,103 1 19,168,531 22.82%
2016 4,106,842 4,059,301 47,542 18,849,957 21.53%
2017 4,293,988 4,290,083 3,904 20,169,748 21.27%
2018 4,521,649 4,284,631 237,017 20,908,030 20.49%
2019 4,592,952 4,350,492 242,460 21,664,177 20.08%
2020 4,500,497 4,328,027 172,470 21,448,598 20.18%
2021 4,574,681 4,424,182 150,499 21,351,655 20.72%
2022 5,005,205 4,807,105 198,100 22,004,293 21.85%
Valuation Date:
Notes:
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal and Modified Terminal Funding
Amortization Method
Remaining Amortization Period General Division: Multiple bases from 9 to 15 years
Police Division: Multiple bases from 9 to 15 years
Fire Division: Multiple bases from 8 to 17 years
Asset Valuation Method 5-Year smoothed market; 20% corridor
Inflation 2.75% wage inflation; 2.25% price inflation
Salary Increases General Division: 2.75% to 6.75% including wage inflation
Police Division: 2.75% to 6.55% including wage inflation
Fire Division: 2.75% to 7.15% including wage inflation
Investment Rate of Return 7.00%, net of investment expenses
Retirement Age Experience-based table of rates that are specific to the type of eligibility condition.
Mortality
Other Information
City of Jefferson
Required Supplementary Information
October 31, 2022
The roll-forward of total pension liability from February 28, 2022 to June 30, 2022 reflects expected service cost and
interest reduced by actual benefit payments.
The healthy retiree mortality tables, for post-retirement mortality, used in evaluating allowances to be paid were
115% of the PubG-2010 Retiree Mortality Table for males and females. The disabled retiree mortality tables, for post
retirement mortality, used in evaluating allowances to be paid were 115% of the PubNS-2010 Disabled Retiree
Mortality Table for males and females. The pre-retirement mortality tables used were 75% of the PubG-2010
Employee Mortality Table for males and females of General groups and 75% of the PubS-2010 Employee Mortality
Table for males and females of Police, Fire, and Public Safety groups.
Mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scale to
the above described tables.
None
SCHEDULE OF CONTRIBUTIONS
Last 10 Fiscal Years
NOTES TO THE SCHEDULE OF CONTRIBUTIONS
February 28, 2022
A level percentage of payroll amortization method is used to amortize the UAAL over a closed period of years. If the
UAAL (excluding the UAAL associated with benefit changes) is negative, then this amount is amortized over the
greater of (i) the remaining initial amortization period or (ii) 15 years.
67
Fiscal year ending October 31,2022 2021 2020 2019 2018
Total OPEB Liability
Service Cost 106,552$ 118,244$ 100,686$ 81,477$ 77,397$
Interest on the Total OPEB Liability 45,098 52,072 56,844 71,092 68,428
Difference between expected and actual experience - (323,146) - (104,386) -
Assumption Changes (412,840) 244,588 67,160 244,520 (69,792)
Benefit Payments (98,456) (111,728) (110,818) (86,167) (75,347)
Net Change in Total OPEB Liability (359,646) (19,970) 113,872 206,536 686
Total OPEB Liability beginning 2,093,511 2,113,481 1,999,609 1,793,073 1,792,387
Total OPEB Liability ending 1,733,865$ 2,093,511$ 2,113,481$ 1,999,609$ 1,793,073$
Plan Fiduciary Net Position
Contributions-employer 98,456$ 111,728$ 110,818$ 86,167$ 75,347$
Benefit Payments (98,456) (111,728) (110,818) (86,167) (75,347)
Net Change in Plan Fiduciary Net Position - - - - -
Plan Fiduciary Net Position beginning -$ -$ -$ -$ -$
Plan Fiduciary Net Position ending -$ -$ -$ -$ -$
Total OPEB Liability 1,733,865$ 2,093,511$ 2,113,481$ 1,999,609$ 1,793,073$
Plan Fiduciary Net Position as a percentage of the
Total OPEB Liability 0.00% 0.00% 0.00% 0.00% 0.00%
Covered-employee payroll 19,243,035$ 19,985,655$ 19,406,438$ 20,181,782$ 17,831,599$
Total OPEB Liability as a percentage
of covered-employee payroll 9.01% 10.48% 10.89% 9.91% 10.06%
Notes to Schedule:
Valuation date October 31, 2020
Actuarial cost method Entry age normal
Inflation 2.75% wage inflation
Healthcare cost trend rates Initial trend of 7% gradually decreasing to an ultimate trend rate of 3.5% in year 15
Salary increases 2.75% to 7.15% including wage inflation
Investment rate of return 4.00%, net of OPEB plan investment expense, including inflation
Retirement age Experience-based table of rates that are specific to the type of eligible conditon and date of hire
Mortality
Assumption Changes
Changes of assumptions reflect the effects of changes in the discount rate each period.
The following are the discount rates used each period:
2022 4.62%
2021 2.15%
2020 2.46%
2019 2.85%
2018 3.97%
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
*Information for prior years is not available; ultimately ten fiscal years will be displayed.
The healthy retiree mortality tables, for post-retirement mortality, used in evaluating allowances
to be paid were 115% of the PubG-2010 Retiree Mortality Table for males and females. The
disabled retiree mortality tables, for post-retirement mortality, used in evaluating the allowances
to be paid were 115% of the PubNS-2010 Disabled Retiree Mortality Table for males and
females. The pre-retirement mortality tables used were 75% of the PubG-2010 Employee
Mortality Tables for males and females of General groups and 75% of the PubS-2010 Employee
Mortality Table for males and females of Police, Fire, and Public Safety groups.
City of Jefferson
Required Supplementary Information
October 31, 2022
Schedule of Changes in Total OPEB Liability and Related Ratios
For the Last Five Fiscal Years*
68
G-1
Original Final
REVENUES
Sales and other user taxes $ 12,617,475 $ 12,617,475 $ 13,775,230 $ 1,157,755
Property taxes 5,709,660 5,709,660 5,844,743 135,083
Utility/Franchise taxes 6,450,000 6,450,000 6,465,661 15,661
Licenses, permits and fees 1,066,438 1,066,438 905,659 (160,779)
Intergovernmental 3,391,463 * 17,371,746 5,638,505 (11,733,241)
Charges for services 3,000,478 3,000,478 3,112,603 112,125
Fines and forfeitures 580,000 580,000 413,558 (166,442)
Investment earnings 170,000 170,000 289,637 119,637
Miscellaneous 512,709 547,898 702,031 154,133
Total revenues 33,498,223 47,513,695 37,147,627 (10,366,068)
EXPENDITURES
General government:
Mayor and council 136,695 136,695 123,070 13,625
City clerk 110,162 132,429 132,427 2
City administrator 287,210 293,368 291,106 2,262
City attorney 348,965 470,899 444,226 26,673
Municipal court 257,055 267,456 249,352 18,104
Human resources 350,872 399,173 389,667 9,506
Finance department 949,366 858,532 800,802 57,730
Non-departmental 1,172,091 * 3,425,336 3,000,262 425,074
Entitlement grant 819,214 * 822,681 185,337 637,344
CDBG-CV 410,435 *410,435 330,529 79,906
CDBG-CV Transformational Housing - 575,760 - 575,760
HPF-P Bruhn Revitalization - 675,000 64 674,936
CDBG-CV Cole County EMS Station - 2,000,000 - 2,000,000
ARPA 790,918 5,780,918 310,663 5,470,255
Information systems technology/GIS 1,138,722 *1,245,311 1,245,150 161
Public safety:
Police 11,806,025 *12,796,706 11,867,373 929,333
Fire 8,255,727 *8,693,965 8,434,411 259,554
Planning & Protective Services:
Administration 366,434 390,041 390,041 -
Planning 229,448 206,093 161,202 44,891
Metropolitan planning organization 190,593 295,069 218,023 77,046
Redevelopment & grants 400,681 *417,694 368,763 48,931
Environmental health 519,102 535,786 531,629 4,157
Prop maintenance/Code enforcement 537,074 *552,388 488,954 63,434
Building regulations 456,760 476,603 476,603 -
Public Works:
Central maintenance 1,230,139 *1,324,879 1,267,645 57,234
Administration 407,710 443,110 428,550 14,560
Engineering 1,212,489 1,250,625 1,233,420 17,205
Streets 3,440,634 3,310,404 3,290,441 19,963
Capital projects 3,427,560 *3,711,522 297,366 3,414,156
Total expenditures 39,252,081 51,898,878 36,957,076 14,941,802
Excess of revenues over expenditures (5,753,858) (4,385,183) 190,551 4,575,734
OTHER FINANCING SOURCES (USES)
Sale of assets 55,000 55,000 87,542 32,542
Transfers in 26,400 506,432 508,951 2,519
Transfers out (300,389) (739,883) (739,883) -
Total other financing sources and uses (218,989) (178,451) (143,390) 35,061
Net change in fund balance (5,972,847) (4,563,634) 47,161 4,610,795
Fund balances-beginning 10,230,722 10,230,722 10,230,722 -
Fund balances-ending $ 4,257,875 $ 5,667,088 $ 10,277,883 $ 4,610,795
* Includes Grants/Capital Projects Reappropriated:
Non-Dept $ 191,460
PPS-CDBG-CV (148)410,435
PPS-Entitlement (149)499,011
ITS 12,136
Fire - Grants 24,640
Fire 35,571
Police Grants 80,782
Police Ammunition 34,366
Police Purchase of Vehicle 25,523
Police Purchase of Equipment 30,545
PPS-Redev & Grants 195,306
PPS-Prop Maint/Code Enforcement 210,783
PW-CM 13,888
990 Grants 3,343,345
990 Fire Stations 9,579
990 Downtown Streetscape 800
990 Ongoing Infrastructure/Facility Needs 63,760
Total Grants Reappropriated $ 5,181,929
CITY OF JEFFERSON, MISSOURI
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
Amounts Final Budget
69
G-2
Original Final
REVENUES
Sales and other user taxes $ 6,006,745 $ 6,006,745 $ 6,664,945 $ 658,200
Intergovernmental - 1,106,654 790,285 (316,369)
Charges for services 3,367,933 3,367,933 3,394,415 26,482
Investment earnings 35,875 35,875 154,582 118,707
Miscellaneous 605,600 609,703 278,993 (330,710)
Total revenues 10,016,153 11,126,910 11,283,220 156,310
EXPENDITURES
Cultural and recreation:
Parks administration 1,687,911 1,955,993 1,953,928 2,065
Ice arena 789,418 839,004 806,795 32,209
Golf course 847,459 912,574 909,635 2,939
Memorial pool 400,370 463,163 449,005 14,158
Ellis Porter pool 288,765 345,892 341,791 4,101
Parks maintenance 2,757,373 2,585,937 2,131,712 454,225
Recreation programs 1,140,145 1,150,406 1,102,660 47,746
Outdoor recreation 369,616 416,344 389,177 27,167
Camp programs 513,093 515,104 380,424 134,680
Multipurpose building 752,120 748,421 703,278 45,143
Amphitheater 951,624 592,464 181,319 411,145
Capital outlay-projects 2,705,416 * 3,529,576 1,586,114 1,943,462
Total expenditures 13,203,310 14,054,878 10,935,838 3,119,040
Excess of revenues over expenditures (3,187,157) (2,927,968) 347,382 3,275,350
OTHER FINANCING SOURCES (USES)
Sale of assets 10,000 10,000 63,925 53,925
Transfers in - 118,415 118,415 -
Total other financing sources and uses 10,000 128,415 182,340 53,925
Net change in fund balance (3,177,157) (2,799,553) 529,722 3,329,275
Fund balances-beginning 8,427,306 8,427,306 8,427,306 -
Fund balances-ending $ 5,250,149 $ 5,627,753 $ 8,957,028 $ 3,329,275
* Includes Grants/Capital Projects Reappropriated:
Parks capital projects $ 2,630,714
CITY OF JEFFERSON, MISSOURI
Required Supplementary Information
Budgetary Comparison Schedule
Parks Fund
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
Amounts Final Budget
70
City of Jefferson
Notes to the Required Supplementary Information
October 31, 2022
Budgetary Information
Budgetary basis of accounting
The City Administrator is responsible for preparing the annual operating and five-year capital budgets for all City
operations and agencies for the Mayor's review, consideration and recommendation to the Council. The process begins at
the department level in March and ends with adoption on or before October 31 of each year. The Mayor's proposed
budget can only be adopted by majority action of the Council which must hold at least one public hearing prior to
enactment. Controls are maintained to ensure compliance with the annual adopted budget which, in turn, must comply
with state constitutional and statutory limits on tax levies. Budgetary control is maintained at the departmental level and
supplemental appropriations require Council approval.
Budgets are prepared on a basis consistent with generally accepted accounting principles and are adopted for all revenues
and expenditures/expenses of all funds.
Project budgets are adopted for the Capital Improvement Tax funds and for capital projects. Capital project budgets also
include the continuing appropriations which represent the remaining balance carried forward from the prior year. Except
for the capital project or grant budgets, any remaining unencumbered appropriations lapse at the fiscal year end.
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are
recorded in order to reserve that portion of the applicable appropriation, is utilized in the governmental fund types.
Encumbrances are carried forward as reservations of fund balance and do not constitute expenditures or liabilities because
the commitments will be honored during the next year.
Excess of expenditures over appropriations
For the year ended October 31, 2022 there were no departments (the legal level of budgetary control) in the governmental
funds where expenditures exceeded appropriations.
71
SUPPLEMENTAL FINANCIAL STATEMENTS
AND SCHEDULES
The supplemental financial presentation contains data beyond what is included in
the government and proprietary financial statements for nonmajor funds. This
data is presented to provide additional financial information in order to better
inform the users of the financial statements.
72
G-3
Original Final
REVENUES
Sales and other user taxes $ 2,500,000 $ 5,300,000 $ 6,664,966 $ 1,364,966
Intergovernmental - - - -
Investment earnings 7,500 7,500 199,472 191,972
Total revenues 2,507,500 5,307,500 6,864,438 1,556,938
EXPENDITURES
Parks: 1,167,961 * 1,347,961 919,761 428,200
Public safety:
Police 755,458 * 979,458 897,780 81,678
Fire 430,794 * 846,594 650,468 196,126
Public works: 5,717,211 * 7,892,984 3,375,171 4,517,813
General government:
ITS/GIS 218,062 * 274,062 137,562 136,500
Annexaton 1,788 * 1,788 - 1,788
Contingency 166,153 * 418,153 - 418,153
Port authority 150,000 * 150,000 - 150,000
Total expenditures 8,607,427 11,911,000 5,980,742 5,930,258
Excess of revenues over expenditures (6,099,927) (6,603,500) 883,696 7,487,196
OTHER FINANCING SOURCES (USES)
Sale of assets - 198,773 198,773 -
Transfers out (7,500) (7,500) (20,891) (13,391)
Total other financing sources and uses (7,500) 191,273 177,882 (13,391)
Net change in fund balance (6,107,427) (6,412,227) 1,061,578 7,473,805
Fund balances-beginning 10,108,668 10,108,668 10,108,668 -
Fund balances-ending $ 4,001,241 $ 3,696,441 $ 11,170,246 $ 7,473,805
* Includes Reappropriated:
Parks $ 805,461
Police 271,707
Fire 212,044
Public works 4,553,128
ITS/GIS 101,062
Annexation 1,788
Port authority 150,000
Contingency 12,237
Total Reappropriated $ 6,107,427
CITY OF JEFFERSON, MISSOURI
Budgetary Comparison Schedule
Capital Improvement Tax Funds
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
Amounts Final Budget
73
G-4
Original Final
REVENUES
Sales and other user taxes $ - $ - $ 1,900,790 $ 1,900,790
Investment earnings - - 3,717 3,717
Total revenues - - 1,904,507 1,904,507
EXPENDITURES
Public safety:
Police - - - -
Fire - - - -
Total expenditures - - - -
Excess of revenues over expenditures - - 1,904,507 1,904,507
OTHER FINANCING SOURCES (USES)
Transfers out - (480,032) (480,032) -
Total other financing sources and uses - (480,032) (480,032) -
Net change in fund balance - (480,032) 1,424,475 1,904,507
Fund balances-beginning - - - -
Fund balances-ending $ - $ (480,032) $ 1,424,475 $ 1,904,507
* Includes Reappropriated:
Public safety $ -
Total Reappropriated $ -
CITY OF JEFFERSON, MISSOURI
Budgetary Comparison Schedule
Public Safety Tax Funds
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
Amounts Final Budget
74
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for
particular purposes.
Police Training Fund - Proceeds from a portion of Municipal Court costs are set aside for training activities for
police officers.
Lodging Tax Fund - Accounts for the collection of the City’s 7% Lodging Tax. Proceeds go to the Jefferson City’s
Convention and Visitors Bureau (a discretely presented component unit) to promote tourism and economic
development and to the Conference Center Fund for the future development of a conference center.
JC Veterans Plaza Trust Fund - Accounts for the proceeds of the sale of commemorative bricks or donations and
expenditures for the cost, engraving and placement of the commemorative bricks and plaques; and the cost of
maintenance and repair of the Veteran’s Plaza.
City Hall Art Trust Fund - Provides art works in the John G. Christy Municipal (City Hall) building from proceeds
of Sidney Larson’s prints of the City Hall mural and proceeds from Jefferson City Police Department History books
and local history books and/or donations.
USS Jefferson City Submarine - Accounts for private donations raised during the commissioning of the U.S. Navy
ship that are used for crew events and promotions under the direction of a city appointed committee.
Woodland Cemetery - Accounts for private donations which include funds transferred from Exchange National
Bank in 2000 from the Woodland Cemetery Trust Fund.
75
H-1TotalUSS Woodland NonmajorPolice Lodging JC Vet City Hall Submarine Cemetery GovernmentalTraining Tax Plaza Trust Art Trust Trust Trust FundsASSETS Cash and cash equivalents $ 72,073 $ 172,181 $ 5,660 $ 21,190 $ 11,023 $ 29,140 $ 311,267 Receivables (net of allowance for uncollectibles): Taxes and franchise fees - 180,875 - - - - 180,875 Inventories- - - 1,005 - - 1,005 Total assets $ 72,073 $ 353,056 $ 5,660 $ 22,195 $ 11,023 $ 29,140 $ 493,147 LIABILITIES AND FUND BALANCESLiabilities: Accounts payable$- $ 299,311 $- $ - $ - $ - $ 299,311 Total liabilities- 299,311 - - - - 299,311 FUND BALANCES Nonspendable: Inventories- - - 1,005 - - 1,005 Restricted:47,523 53,745 4,660 21,190 11,023 24,290 162,431 Assigned: Subsequent year's budget: appropriation of fund balance24,550 - 1,000 - - 4,850 30,400 Total fund balances72,073 53,745 5,660 22,195 11,023 29,140 193,836 Total liabilities and fund balances$ 72,073 $ 353,056 $ 5,660 $ 22,195 $ 11,023 $ 29,140 $ 493,147 Special Revenue FundsCITY OF JEFFERSON, MISSOURICombining Balance SheetNonmajor Governmental FundsOctober 31, 202276
H-2TotalUSS Woodland NonmajorPolice Lodging JC Vet City Hall Submarine Cemetery GovernmentalTraining Tax Plaza Trust Art Trust Trust Trust FundsREVENUESSales and other user taxes $ - $ 1,483,521 $ - $ - $ - $ - $ 1,483,521 Fines and forfeitures 5,585 - - - - - 5,585 Investment earnings 1,285 3,084 106 391 244 538 5,648 Contributions - - 250 56 - 1,000 1,306 Miscellaneous7 - - - - - 7 Total revenues 6,877 1,486,605 356 447 244 1,538 1,496,067 EXPENDITURESCurrent: General government - 1,453,851 225 63 3,543 - 1,457,682 Total expenditures- 1,453,851 225 63 3,543 - 1,457,682 Excess (deficiency) of revenues over expenditures6,877 32,754 131 384 (3,299) 1,538 38,385 OTHER FINANCING SOURCES (USES)Transfers out- (28,920) - - - - (28,920) Total other financing sources and uses- (28,920) - - - - (28,920) Net change in fund balances6,877 3,834 131 384 (3,299) 1,538 9,465 Fund balances-beginning 65,196 49,911 5,529 21,811 14,322 27,602 184,371 Fund balances-ending $ 72,073 $ 53,745 $ 5,660 $ 22,195 $ 11,023 $ 29,140 $ 193,836 Special Revenue FundsCITY OF JEFFERSON, MISSOURICombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended October 31, 202277
I-1
Original Final
Budgetary fund balance, November 1 $ 65,196 $ 65,196 $ 65,196 $ -
Resources (inflows):
Fines and forfeitures 7,800 7,800 5,585 (2,215)
Investment earnings 1,200 1,200 1,285 85
Amounts available for appropriation 74,196 74,196 72,066 (2,130)
Charges to appropriations (outflows):
Current:
Public safety 30,000 30,000 (7) 30,007
Total charges to appropriations 30,000 30,000 (7) 30,007
Budgetary fund balance, October 31 $ 44,196 $ 44,196 $ 72,073 $ 27,877
I-2
Original Final
Budgetary fund balance, November 1 $ 49,911 $ 49,911 $ 49,911 $ -
Resources (inflows):
Taxes 1,200,000 1,200,000 1,483,521 283,521
Investment earnings 2,400 2,400 3,084 684
Amounts available for appropriation 1,252,311 1,252,311 1,536,516 284,205
Charges to appropriations (outflows):
Tourism and economic development:
Other 1,176,000 1,176,000 1,453,851 (277,851)
Transfers out 26,400 26,400 28,920 (2,520)
Total charges to appropriations 1,202,400 1,202,400 1,482,771 (280,371)
Budgetary fund balance, October 31 $ 49,911 $ 49,911 $ 53,745 $ 3,834
CITY OF JEFFERSON, MISSOURI
CITY OF JEFFERSON, MISSOURI
Budgetary Comparison Schedule
Police Training Fund
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
Amounts Final Budget
Amounts Final Budget
Budgetary Comparison Schedule
Lodging Tax Fund
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
78
I-3
Original Final
Budgetary fund balance, November 1 $ 5,529 $ 5,529 $ 5,529 $ -
Resources (inflows):
Investment earnings 1,000 1,000 106 (894)
Contributions - - 250 250
Amounts available for appropriation 6,529 6,529 5,885 (644)
Charges to appropriations (outflows):
Current:
Maintenance 1,000 1,000 225 775
Total charges to appropriations 1,000 1,000 225 775
Budgetary fund balance, October 31 $ 5,529 $ 5,529 $ 5,660 $ 131
I-4
Original Final
Budgetary fund balance, November 1 $ 21,811 $ 21,811 $ 21,811 $ -
Resources (inflows):
Investment earnings 360 360 391 31
Contributions - - 56 56
Amounts available for appropriation 22,171 22,171 22,258 87
Charges to appropriations (outflows):
Special projects:
History books - - 63 (63)
Total charges to appropriations - - 63 (63)
Budgetary fund balance, October 31 $ 22,171 $ 22,171 $ 22,195 $ 24
CITY OF JEFFERSON, MISSOURI
CITY OF JEFFERSON, MISSOURI
Budgetary Comparison Schedule
JC Veterans Plaza Trust
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
Amounts Final Budget
Amounts Final Budget
Budgetary Comparison Schedule
City Hall Art Trust Fund
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
79
I-5
Original Final
Budgetary fund balance, November 1 $ 14,322 $ 14,322 $ 14,322 $ -
Resources (inflows):
Investment earnings 240 240 244 4
Amounts available for appropriation 14,562 14,562 14,566 4
Charges to appropriations (outflows):
Current:
Other - - 3,543 (3,543)
Total charges to appropriations - - 3,543 (3,543)
Budgetary fund balance, October 31 $ 14,562 $ 14,562 $ 11,023 $(3,539)
I-6
Original Final
Budgetary fund balance, November 1 $ 27,602 $ 27,602 $ 27,602 $-
Resources (inflows):
Investment earnings 564 564 538 (26)
Contributions - - 1,000 1,000
Amounts available for appropriation 28,166 28,166 29,140 974
Charges to appropriations (outflows):
Total charges to appropriations - - - -
Budgetary fund balance, October 31 $ 28,166 $ 28,166 $ 29,140 $974
Budgeted Amounts Actual Variance with
CITY OF JEFFERSON, MISSOURI
Budgetary Comparison Schedule
USS JC Submarine Fund
For the Year Ended October 31, 2022
Amounts Final Budget
Amounts Final Budget
CITY OF JEFFERSON, MISSOURI
Budgetary Comparison Schedule
Woodland Cemetery Fund
For the Year Ended October 31, 2022
Budgeted Amounts Actual Variance with
80
NON-MAJOR ENTERPRISE FUNDS
Enterprise funds account for operations that are financed and operated in a manner similar to private enterprises,
where the intent of the City is that the costs of providing goods or services to the general public on a continuing basis
be financed or recovered primarily through user charges; or where the City has decided that periodic determination of
net income is appropriate for accountability purposes.
Airport - Accounts for the operations of the City owned airport facility in north Jefferson City.
Parking - Accounts for the operations of a 542 car parking garage on the southeast corner of Madison Street and
Capitol Avenue, the parking garage on the Jefferson lot, 13 reserved parking lots, 5 metered lots, and 760 on street
parking meters, including collection and enforcement.
81
H-3
Airport Parking Totals
ASSETS:
Current assets:
Cash and cash equivalents $ 71,813 $ 5,433,481 $ 5,505,294
Receivables (net of allowance
for uncollectibles):
Accounts 43,920 17,636 61,556
Receivables from other governments 36,225 - 36,225
Lease 33,462 - 33,462
Prepaid items 3,198 3,938 7,136
Total current assets 188,618 5,455,055 5,643,673
Noncurrent assets:
Lease receivable 2,111,234 - 2,111,234
Restricted assets:
Net pension asset 187,926 635,020 822,946
Capital assets:
Land 2,318,767 1,846,310 4,165,077
Improvements other than buildings 13,762,008 281,888 14,043,896
Buildings and equipment 620,665 5,869,440 6,490,105
Construction in progress 715,598 276,735 992,333
Less accumulated depreciation (9,498,497) (5,961,907) (15,460,404)
Total noncurrent assets 10,217,701 2,947,486 13,165,187
Total assets 10,406,319 8,402,541 18,808,860
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows related to pensions 8,584 - 8,584
Deferred outflows related to OPEB 3,424 6,419 9,843
Total deferred outflows of resources 12,008 6,419 18,427
LIABILITIES:
Current liabilities:
Accounts payable - 86,242 86,242
Accrued liabilities 9,400 17,595 26,995
Deposits 500 560 1,060
Compensated absences 2,935 5,536 8,471
Unearned revenue - 46,145 46,145
Total current liabilities 12,835 156,078 168,913
Noncurrent liabilities:
Compensated absences 29,672 55,977 85,649
Net OPEB liability 15,110 28,331 43,441
Total noncurrent liabilities 44,782 84,308 129,090
Total liabilities 57,617 240,386 298,003
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows related to pensions 63,854 243,545 307,399
Deferred inflows related to OPEB 6,369 11,942 18,311
Deferred inflows related to leases 2,098,630 - 2,098,630
Total deferred inflows of resources 2,168,853 255,487 2,424,340
NET POSITION:
Net investment in capital assets 7,918,541 2,312,466 10,231,007
Restricted for:
Pensions/OPEB 114,601 357,620 472,221
Unrestricted 158,715 5,243,001 5,401,716
Total net position $ 8,191,857 $ 7,913,087 $ 16,104,944
Business-type Activities
CITY OF JEFFERSON, MISSOURI
Combining Statement of Net Position
Non-major Proprietary Funds
October 31, 2022
82
H-4
Airport Parking Totals
Operating Revenues:
Charges for services $ 205,745 $ 935,829 $ 1,141,574
Miscellaneous 175,854 9,942 185,796
Total operating revenues 381,599 945,771 1,327,370
Operating Expenses:
Personnel services 201,137 415,478 616,615
Contractual services 80,592 217,454 298,046
Material and supplies 30,831 33,909 64,740
Repairs and maintenance 67,586 97,746 165,332
Utilities 12,196 22,459 34,655
Depreciation 960,050 46,132 1,006,182
Other operating - 4,150 4,150
Total operating expenses 1,352,392 837,328 2,189,720
Operating income (loss) (970,793) 108,443 (862,350)
Nonoperating revenue (expenses):
Intergovernmental 11,121 - 11,121
Interest and investment revenue 49,078 97,924 147,002
Sales of assets (Loss on sale)- 54,270 54,270
Total nonoperating revenues (expenses)60,199 152,194 212,393
Income (loss) before capital contributions and transfers (910,594) 260,637 (649,957)
Capital contributions 480,652 - 480,652
Transfers in 200,378 21,530 221,908
Change in net position (229,564) 282,167 52,603
Net position-beginning 8,421,421 7,630,920 16,052,341
Net position-ending $ 8,191,857 $ 7,913,087 $ 16,104,944
Business-type Activities
CITY OF JEFFERSON, MISSOURI
Combining Statement of Revenues, Expenses, and Changes in Net Position
Non-major Proprietary Funds
For the Year Ended October 31, 2022
83
H-5
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ (1,784,395) $ 948,258 $ (836,137)
Payments to suppliers (143,373) (106,144) (249,517)
Payments to employees 1,871,200 (485,702) 1,385,498
Payments to other funds for services provided (69,968) (188,264) (258,232)
Net cash provided (used) by operating activities (126,536) 168,148 41,612
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating subsidies and transfers from other funds 200,378 21,530 221,908
Operating subsidies from other governments 50,628 - 50,628
Net cash provided (used) by noncapital
financing activities 251,006 21,530 272,536
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Capital grants 480,652 - 480,652
Purchases of capital assets (734,105) (276,735) (1,010,840)
Proceeds from the sale of assets - 101,577 101,577
Net cash provided (used) by capital and
related financing activities (253,453) (175,158) (428,611)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 49,078 97,924 147,002
Net cash provided (used) by investing activities 49,078 97,924 147,002
Net increase (decrease) in cash and cash equivalents (79,905) 112,444 32,539
Balances-beginning of the year 151,718 5,321,037 5,472,755
Balances-end of the year $71,813 $ 5,433,481 $ 5,505,294
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)$ (970,793) $ 108,443 $(862,350)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation expense 960,050 46,132 1,006,182
Change in assets, deferred outflows, deferred inflows, and liabilities:
Receivables, net (2,165,994) 1,825 (2,164,169)
Prepaid items (51) (109) (160)
Deferred outflows 5,879 14,218 20,097
Accounts and other payables 49,397 254,852 304,249
Deferred inflows 1,994,976 (257,213) 1,737,763
Net cash provided (used) by operating activities $ (126,536) $ 168,148 $41,612
Airport Parking Totals
CITY OF JEFFERSON, MISSOURI
Combining Statement of Cash Flows
Non-major Proprietary Funds
For the Year Ended October 31, 2022
Business-type Activities
84
INTERNAL SERVICE FUNDS
Internal service funds account for the Self-Insurance Workers Compensation Fund
and the Self-Funded Health Insurance Fund.
Worker’s Compensation - This is a self-insured fund established in 1991 to directly pay for
on-the-job or job related sickness and injuries. The plan was implemented as a cost containment
measure in lieu of using the State of Missouri fund or private insurance.
Self-Funded Health Insurance - This is a self-insured fund established in 2016 to self-fund the
health insurance program offered to City employees. Costs of the program are accounted for in an
Internal Service Fund, in which services provided under the health insurance program are billed to
the funds benefiting from the service.
85
H-6
ASSETS:
Current assets:
Cash and cash equivalents $ 597,917 $ 175,000 $ 772,917
Receivables (net of allowance
for uncollectibles):
Accounts 155,678 210,983 366,661
Receivables from other governments - 254,535 254,535
Current restricted assets:
Cash and cash equivalents 23,296 - 23,296
Total current assets 776,891 640,518 1,417,409
Noncurrent assets:
Restricted assets:
Investments 176,704 - 176,704
Total noncurrent assets 176,704 - 176,704
Total assets 953,595 640,518 1,594,113
LIABILITIES:
Current liabilities:
Due to other funds - 53,835 53,835
Claims & judgments 177,978 465,352 643,330
Total current liabilities 177,978 519,187 697,165
Noncurrent liabilities:
Claims and judgments 481,199 - 481,199
Total noncurrent liabilities 481,199 - 481,199
Total liabilities 659,177 519,187 1,178,364
NET POSITION:
Restricted for:
Statutory Obligations 200,000 - 200,000
Unrestricted 94,418 121,331 215,749
Total net position $ 294,418 $ 121,331 $ 415,749
CITY OF JEFFERSON, MISSOURI
Combining Statement of Net Position
Internal Service Funds
October 31, 2022
Worker's
Compensation
Self-Funded
Health Insurance
Total Internal
Service Funds
86
H-7
Operating Revenues:
Miscellaneous $ 18,504 $ 80,176 $ 98,680
Premiums 850,000 4,574,301 5,424,301
Total operating revenues 868,504 4,654,477 5,522,981
Operating Expenses:
Contractual services 239,232 22,300 261,532
Claims expense 531,393 4,864,387 5,395,780
Other operating - 8,605 8,605
Total operating expenses 770,625 4,895,292 5,665,917
Operating income (loss) 97,879 (240,815) (142,936)
Nonoperating revenue (expenses):
Intergovernmental - 254,535 254,535
Interest and investment revenue 15,720 - 15,720
Unrealized gain (loss) on investments (20,885) - (20,885)
Total nonoperating revenues (expenses) (5,165) 254,535 249,370
Change in net position 92,714 13,720 106,434
Net position-beginning 201,704 107,611 309,315
Net position-ending $ 294,418 $ 121,331 $ 415,749
CITY OF JEFFERSON, MISSOURI
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended October 31, 2022
Worker's
Compensation
Self-Funded
Health Insurance
Total Internal
Service Funds
87
H-8
CASH FLOWS FROM OPERATING ACTIVITIES
Services provided to other funds $ 867,509 $ 4,589,208 $ 5,456,717
Payments to suppliers (239,232) (30,905) (270,137)
Claims paid (328,848) (4,703,471) (5,032,319)
Other receipts (payments) - (35,404) (35,404)
Net cash provided (used) by operating activities 299,429 (180,572) 118,857
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating subsidies from other governments - 355,572 355,572
Net cash provided (used) by noncapital
financing activities - 355,572 355,572
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 15,720 - 15,720
Net cash provided (used) by investing activities 15,720 - 15,720
Net increase (decrease) in cash and cash equivalents 315,149 175,000 490,149
Balances-beginning of the year 306,064 - 306,064
Balances-end of the year $ 621,213 $ 175,000 $ 796,213
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $ 97,879 $ (240,815) $ (142,936)
Change in assets, deferred outflows, deferred inflows, and liabilities:
Receivables, net (995) (65,269) (66,264)
Accounts and other payables 202,545 125,512 328,057
Net cash provided (used) by operating activities $ 299,429 $ (180,572) $ 118,857
CITY OF JEFFERSON, MISSOURI
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended October 31, 2022
Compensation Health Insurance Service Funds
Worker's Self-Funded Total Internal
88
FEDERAL AWARDS
SECTION
89
Federal Grantor/Pass-Through
Grantor/Program Title
Federal
Assistance
Listing
Number
Pass-Through Entity Identifying
Number
Federal
Expenditures
Expenditures
to
Subrecipients
U.S. Department of Transportation - Federal Transit Administration
COVID-19 Federal Transit Formula Grants Jefferson City ARP Grants 20.507 MO-2022-033-00 670,712$ -$
Federal Transit Formula Grants - 5307 Operating 20.507 MO-2022-039-00 410,396 -
COVID-19 Jefftran City of Jefferson Missouri - CARES Act Funds 20.507 MO-2020-028-00 1,223,253 -
2,304,361
Total Federal Transit Cluster 2,304,361 -
Passed Through University of Central MO:
National Priority Safety Programs:
Child Passenger Safety Enforcement 20.616 22-M2HVE-05-032 260 -
Click It or Ticket Enforcement Campaign 20.616 22-M2HVE-05-032 606 -
Alcohol Open Container Requirements:
Holiday DWI Enforcement Campaign 20.607 21-154-AL-104 366 -
Total University of Central MO 1,232 -
Passed Through MO Department of Transportation:
State and Community Highway Safety:
Hazardous Moving Violations 20.600 22-PT-02-017 18,310 -
Hazardous Moving Violations 20.600 23-PT-02-062 1,922 -
Highway Safety Initiative 20.600 22-EM-02-001 23,251 -
Child Passenger Seat Safety Program 20.600 1,960 -
Total Highway Safety Cluster 45,443 -
Highway Safety Division:Alcohol Open Container RequirementsDWI Enforcement 20.607 23-154-AL-049 1,746 - DWI Enforcement 20.607 22-154-AL-021 4,499 -
Total DWI Enforcement 6,245 -
Total MO Department of Transportation - Highway Safety Division 6,245 -
Passed Through MO Department of Transportation:
Airport Improvement Programs:
MO Highway and Transportation Commission Block Grant 20.106 20-040B-1 477,557 -
COVID-19 Airport Coronavirus Relief Grant Program 20.106 21-040B-1 11,420 -
Total MO Department of Transportation 488,977 -
Metropolitan Transportation Planning and State and Non-Metropolitan
Planning and Research
Highway Planning and Construction 20.505 MO-81-0018 193,700 -
Total Highway Planning and Construction Cluster 193,700 -
Total U.S. Department of Transportation 3,039,958 -
U.S. Department of the Treasury
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 1,604,599 -
Total U.S. Department of the Treasury 1,604,599 -
U.S. Department of Justice
2020 Bullet Resistant Vest 16.607 5,816 -
2021 Bullet Resistant Vest 16.607 794 -
Total Department of Justice 6,610 -
CITY OF JEFFERSON, MISSOURI
Schedule of Expenditures of Federal Awards
For the Year Ended October 31, 2022
The accompanying notes are an integral part of this schedule.
90
Federal Grantor/Pass-Through
Grantor/Program Title
Federal
Assistance
Listing
Number
Pass-Through Entity Identifying
Number
Federal
Expenditures
Expenditures
to
Subrecipients
CITY OF JEFFERSON, MISSOURI
Schedule of Expenditures of Federal Awards
For the Year Ended October 31, 2022
Passed Through MO State Highway Patrol:
High Intensity Drug Trafficking Areas Program 95.001 G20MW0001A 5,852 -
High Intensity Drug Trafficking Areas Program 95.001 G21MW0001A 5,052 -
High Intensity Drug Trafficking Areas Program 95.001 G22MW0001A 854 -
Total Executive Office of the President 11,758 -
Total U.S. Department of Justice 18,368 -
U.S. Department of Housing and Urban Development
COVID-19 Community Development Block Grants/Entitlement Grants 14.218 330,529 -
Community Development Block Grants/Entitlement Grants 14.218 179,155 -
Total CDBG Entitlement Grants Cluster 509,684 -
Total U.S Department of Housing and Urban Development 509,684 -
U.S. Department of Health and Human Services
Passed Through Missouri Department of Health and Senior Services:
Child Care and Development Block Grant (CCDF Cluster)93.575 3,950 -
Total U.S. Department of Health and Human Services 3,950 -
U.S. Department of Homeland Security
Disaster Grants - Public Assistance (Presidentially Declared Disaster)
COVID-19 Emergency Protective Measures 97.036 254,535 -
Passed Through State Emergency Management Agency:
Hazard Mitgation Grant
FEMA Project #0033 Norris Dr 97.039 FEMA-4451-DR-MO 240,692 -
Total State Emergency Management Agency 495,227 -
Passed Through Missouri Department of Public Safety:
Combatting Domestic Violent Extremism 97.067 EMW-2021-SS-00038 64,705 -
Total U.S. Department of Homeland Security 559,932 -
U.S. Department of the Interior
Passed Through Missouri Department of Natural Resources:
Historic Preservation Fund Grants - In-Aid 15.904 P21AP11790 64
Historic Preservation Fund Grants - In-Aid 15.904 29-21-10029-011 25,500 -
Historic Preservation Fund Grants - In-Aid 15.904 29-21-10029-014 16,800 -
Total U.S. Department of the Interior 42,364 -
Total Expenditures of Federal Awards 5,778,855$ -$
The accompanying notes are an integral part of this schedule.
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CITY OF JEFFERSON, MISSOURI
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended October 31, 2022
NOTE 1 – BASIS OF PRESENTATION:
The accompanying schedule of expenditures of federal awards (the Schedule) includes
the federal award activity of the City of Jefferson, Missouri under programs of the federal
government for the year ended October 31, 2022. The information in this Schedule is
presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents
only a selected portion of the operations of the City of Jefferson, Missouri, it is not
intended to and does not present the financial position, changes in net position, or cash
flows of the City of Jefferson, Missouri.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform
Guidance wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
NOTE 3 – PROGRAM INCOME:
In accordance with terms of the grant, program income is available to be used to reduce the
amount of federal funds used for specific projects:
HUD:
Program Income Carryforward $ -
Expenses paid with program income (8,335)
Program Income 8,335
Remainder program income $ -
NOTE 4 – INDIRECT COST RATE:
The City of Jefferson has elected to use the 10% de minimis cost rate allowed under the
Uniform Guidance.
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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Jefferson, Missouri
We have audited, in accordance with the auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States,
the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Jefferson,
Missouri, as of and for the year ended October 31, 2022, and the related notes to the
financial statements, which collectively comprise the City of Jefferson, Missouri’s basic
financial statements and have issued our report thereon dated June 5, 2023. The financial
statements of the Jefferson City Convention and Visitors Bureau were not audited in
accordance with Government Auditing Standards and accordingly, this report does not
include reporting on internal control over financial reporting or instances of reportable
noncompliance associated with the Jefferson City Convention and Visitors Bureau.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of
Jefferson, Missouri’s internal control over financial reporting (internal control) as a basis
for designing audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of City of Jefferson, Missouri’s internal control.
Accordingly, we do not express an opinion on the effectiveness of City of Jefferson,
Missouri’s internal control.
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A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, misstatements on a timely basis. A material
weakness is a deficiency, or a combination of deficiencies, in internal control such that
there is a reasonable possibility that a material misstatement of the entity’s financial
statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or, significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that were not identified. Given these
limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. We did identify a certain deficiency in internal control,
described in the accompanying schedule of findings and questioned costs as item 2022-001
that we consider to be a significant deficiency.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Jefferson,
Missouri’s financial statements are free from material misstatement, we performed tests
of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions
was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
City of Jefferson, Missouri’s Response to Finding
City of Jefferson, Missouri’s response to the findings identified in our audit is described
in the accompanying schedule of findings and questioned costs. City of Jefferson,
Missouri’s response was not subjected to the auditing procedures applied in the audit of
the financial statements and, accordingly, we express no opinion on the response.
94
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control
and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the entity’s internal control or on compliance. This report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control and compliance. Accordingly, this communication is not suitable for
any other purpose.
EVERS & COMPANY, CPA’s, L.L.C.
Jefferson City, Missouri
June 5, 2023
95
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of the City Council
City of Jefferson, Missouri
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Jefferson, Missouri’s compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could
have a direct and material effect on each of City of Jefferson, Missouri’s major federal
programs for the year ended October 31, 2022. City of Jefferson, Missouri’s major
federal programs are identified in the summary of Auditors’ results section of the
accompanying schedule of findings and questioned costs.
In our opinion, City of Jefferson, Missouri complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material
effect on each of its major federal programs for the year ended October 31, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance). Our responsibilities under those standards and
the Uniform Guidance are further described in the Auditors’ Responsibilities for the
Audit of Compliance section of our report.
96
We are required to be independent of City of Jefferson, Missouri and to meet our other
ethical responsibilities, in accordance with relevant ethical requirements relating to our
audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on compliance for each major federal program. Our
audit does not provide a legal determination of City of Jefferson, Missouri’s compliance
with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and
for the design, implementation, and maintenance of effective internal control over
compliance with the requirements of laws, statutes, regulations, rules, and provisions of
contracts or grant agreements applicable to City of Jefferson, Missouri’s federal
programs.
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance
with the compliance requirements referred to above occurred, whether due to fraud or
error, and express an opinion on City of Jefferson, Missouri’s compliance based on our
audit. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted
auditing standards, Government Auditing Standards, and the Uniform Guidance will
always detect material noncompliance when it exists. The risk of not detecting material
noncompliance resulting from fraud is higher than for that resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control. Noncompliance with the compliance requirements referred to above is
considered material if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on
compliance about City of Jefferson, Missouri’s compliance with the requirements of each
major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards,
Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout
the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding City of
Jefferson, Missouri’s compliance with the compliance requirements referred to
above and performing such other procedures as we considered necessary in the
circumstances.
97
Obtain an understanding of City of Jefferson, Missouri’s internal control over
compliance relevant to the audit in order to design audit procedures that are
appropriate in the circumstances and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of City of Jefferson, Missouri’s
internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and any significant deficiencies
and material weaknesses in internal control over compliance that we identified during the
audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a
control over compliance does not allow management or employees, in the normal course
of performing their assigned functions, to prevent, or detect and correct, noncompliance
with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a
federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness
in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose
described in the Auditors’ Responsibilities for the Audit of Compliance section above
and was not designed to identify all deficiencies in internal control over compliance that
might be material weaknesses or significant deficiencies in internal control over
compliance. Given these limitations, during our audit we did not identify any deficiencies
in internal control over compliance that we consider to be material weaknesses, as
defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness
of internal control over compliance. Accordingly, no such opinion is expressed.
98
The purpose of this report on internal control over compliance is solely to describe the
scope of our testing of internal control over compliance and the results of that testing
based on the requirements of the Uniform Guidance. Accordingly, this report is not
suitable for any other purpose.
EVERS & COMPANY, CPA’s, L.L.C.
Jefferson City, Missouri
June 5, 2023
99
CITY OF JEFFERSON, MISSOURI
Schedule of Findings and Questioned Costs
For the Year Ended October 31, 2022
Section I – Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued on whether the financial
statements audited were prepared in accordance with GAAP Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified that are not
considered to be material weaknesses? Yes
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified that are not
considered to be material weakness(es)? No
Type of auditors’ report issued on compliance for major
federal programs: Unmodified
Any audit findings disclosed that are required to be reported in
Accordance with section 2CFR 200.51(a)? No
100
CITY OF JEFFERSON, MISSOURI
Schedule of Findings and Questioned Costs
For the Year Ended October 31, 2022
Section I – Summary of Auditors’ Results (Cont’d.)
Identification of Major Programs:
Federal Assistance Listing Number(s) Name of Federal Program or
Cluster
20.507 US Department of Transportation
Federal Transit
21.027 Corona Virus State and Local
Fiscal Recovery Funds
Dollar Threshold Used to Distinguish between
Type A and Type B Programs: $750,000
Auditee qualified as low-risk? No
Section II – Financial Statement Findings
Significant Deficiency
2022-001 Park Fund Deposits
Condition: Park Fund (damage) deposit account balance does not have
substantiating documentation.
Criteria: Management is responsible for designing internal controls that are
sufficient to ensure that account balances are materially stated.
Contest: Park department personnel were unable to provide documentation to
substantiate year end balances associated with the (damage) deposit account. In
addition, they are unable to reconcile to the RecTrac system, which acts as a
subsidiary ledger for this account to the City’s general ledger system.
Cause: Internal controls over the RecTrac system are not sufficient to identify
all (damage) deposits received, returned, held for future events, or deposit
forfeitures.
Effect: Financial statement balances could be materially misstated.
101
CITY OF JEFFERSON, MISSOURI
Schedule of Findings and Questioned Costs
For the Year Ended October 31, 2022
Section II – Financial Statement Findings (Cont’d.)
Significant Deficiency (Cont’d.)
2022-001 Park Fund Deposits (Cont’d.)
Recommendations: We recommend the Park department management
implement controls over the (damage) deposit process to ensure proper
accounting of all deposits received, returned, held for future events or forfeited.
Views of Responsible Officials: Management acknowledges that the (damage)
deposit account is not reconciled, and concurs with the recommendation.
Corrective Action Plan: Management/the Parks Director will insure staff has the
ability to provide documentation to substantiate year end balances in the
financial software associated with the (damage) deposit liability account. This
documentation will reflect deposits that have not been refunded as of a given
date and should specify the date of the deposit was received by individual and
amount.
Anticipated Completion Date: Immediately
Section III – Federal Award Findings and Questioned Costs
None.
Section IV – Summary of Status of Prior Audit Findings
2021-001 Internal Control over Preparation of Schedule of Federal Awards
Condition: The SEFA provided to the auditors at the start of fieldwork was not
complete. Federal expenditures for the major program were not calculated
correctly.
Recommendation: The City should reinforce its grant program management to
insure proper training of personnel responsible for calculating allowable
expenditures.
Current Status: The City has implemented proper training for personnel
responsible for calculating allowed expenditures.
102
CITY OF JEFFERSON, MISSOURI
Schedule of Findings and Questioned Costs
For the Year Ended October 31, 2022
U.S. Department of Transportation Federal Transit Administration
Material Weakness
2021-002 Incorrect calculation of eligible federal expenditures for reimbursement
Condition: In the request for reimbursement of transit operating expenses, the
auditee included other program income as an expense which should have
reduced the expenses claimed for reimbursement. Additionally, the auditee
improperly calculated the 10% de minimis cost rate for reimbursement.
Recommendation: The City should reinforce its grant program management to
insure proper training of all grant managers.
Current Status: The City has implemented proper training for grant managers to
ensure grant reimbursement requests are calculated in accordance with grant
provisions.
103