HomeMy Public PortalAbout2013 AuditMember American Institute of
Certified Public Accountants
BRUCE D. CULLEY, C.P.A., P.C.
3000 BROOKTREE LANE, SUITE 210
GLADSTONE, MISSOURI 64119
816-453-1040 FAX: 816-453-0721
bruceculley@sbcglobal.net
CITY OF P ARKVJLLE, MISSOURI
ADPITED FINANCI.1U; §~ATEMENTS
. ' ,,::.. '/ ' ·:,:\
Member Missouri Society of
Certified Public Accountants
FOR ']'Il.]l; YE.AR ENDED DECEMBER 31, 2013
' ·,, ' ..
CITY OF PARKVILLE, MISSOURI
TABLE OF CONTENTS
Independent Auditor's Report ............................................................................... :···· .. ··············· I - 2
Management's Discussion and Analysis ....................................................... ,;.:, ......................... 3 -11
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position .............................................. ,: .......... · .............................. : ...... 12
Statement of Activities .......................................... £: .................................................. :. 13
Fund Financial Statements
Governmental Funds
Balance Sheet .................................................................. : ....................................... 14
Reconciliation of the Balance Sheet of the Governmental Funds to the
Statement of Net Position ... .'.: .. '. .. :: ....................................... :, ............................. 15
Statement of Revenues, Expenditures aµd ·, · .• ··.. .• •
Changes in Fund Balances -G!iyernmenta]f u~ds .............. : ............................ 16 -I 7
Reconciliation of the Statement ofR~~enues, ~xpeni:li(Ures and.'.··
Changes in F~nd Balances of Go~ernm.~rital F~rlds to iµe
StaterµeHfdfActivities ............. :::.:::.' .................. ,, ....................................... 18
\:·:\
ProprietaryEu~\js. ···•• ... • ..• ·
Statement cif''l{et.Position:, ................................ '.'·'·'. ................................................... 19
Statement ofReyen\les, .f;}/Bendituresand Chariges in Fund Balances .................... 20
Statement of Cash Flows .... :.: .............. ,: ... :.:·.'. ........................................................... 21
> -,.'::':\· ;_;;-'_ .. _";,'_··---:-,·.::_----;' :: ' "··-:·.-:>·:·:_.:··:.:.:-. ,., '-<' : .'.:::('.·'
Agency Funds / ; ' < .
Statement of Assets and Liabilities, Municipal Court .............................................. 22
Notes t6 ·Basic Financial Statements ..................................................................................... 23 -51
Required Supplel11eptary Infoflhation
Schedule of Revenues, Expenditures, and Changes in Fund Balances,
Budget and Acttl~l General Fund ............................................................................. 52 -56
Schedule of Funding Progress ............................................................................................... 57
Other Supplementary Information
Combining and Individual Fund Statement Schedules
Combining Balance Sheet -Nonmajor Governmental Funds ........................................ 59 -60
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances -Nonmajor Governmental Funds ............................................................. 61 -62
BRUCE D. CULLEY C.P.A., P.C.
3000 Brooktree Lane, Suite 210
Gladstone, MO. 64119
816-453-1040 Fax: 816-453-0721
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Board of Aldermen
City of Parkville, Missouri
I have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of
the City of Parkville, as of and for the year ended December 31, 2013, and the related notes
to the financial statements, which collectively comprise the City's basic financial statements
as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
My responsibility is to express opinions on these financial statements based on my audit. I
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. Those standards
require that I plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, I express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
1
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my audit opinions.
Opinions
In my opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Parkville, Missouri, as of December 31, 2013, 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. .. '
Other Matters ' :> ;,
Required Supplementmy lriformation
Accounting principles generally accepted in the United States of America require that the
budgetary comparison information, and the schedule of funding progress as listed in the table
of contents presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or
historical context. I 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
my inquiries, the basic financial statements, and other knowledge I obtained during my audit
of the basic financial statements. I 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.
Gladstone, Missouri
August 29, 2014
2
Bruce Culley
Certified Public Accountant
CITY OF PARKVILLE, MISSOURI
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Parkville, we offer readers of the City of Parkville's financial
statements this narrative overview and analysis of the financial activities of the City of
Parkville for the fiscal year ended December 31, 2013. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished
in our letter of transmittal.
Financial Highlights
1. The government's total net assets increased by $839,040. The net assets increase is
found in governmental activities where ther~ i~ a positive$862,461 net change, an.~ a
positive $29, 108 after transfer change . fo. net assets reported in business~type
activities. .. . .• . . . .. .
2. The City refinanced the temporary notes with the Brush Creek Sewer Project and
Brink Myers Road Project duri11g the year. The notespayable on the Brink Myers
Road Project increased $525 ,Ooo' and $80,000 on the Brush Creek Project.
3. The City continued to pay down its existing debt aside from.the temporary notes as
indicated above. Debt connected With the general governmynt activities decreased
$500,000 and the debt connected withthe business activities decreased $150,079.
4. As of the close of the current year, the City's government funds showed a combined
ending balanceqf.$4,64~,593, a decrease ()f $142,318 from the prior year. In 2012,
the City sho)yedan increase in governn:i~11t funds of $976,934 but $1,075,012 was
attributed to a:I~gal settleme11t. ·. •
5. Major capital expenditures ~ere made to th~J3rink Myers Road Project during the
year. The City expe11de:d.funds forepair t11e.retaining wall. The majority of the funds
expended i)i 2013 h·acj. .been received. in a legal settlement in 2012. A total of
$'.iJ96,452 :vyas ·expended on botl1 projects during the year including capitalized
interest. · ' ':. · ·
6. The City is invol~eci'\n majo~dri:iprovements to the sewer plant expending $466,805.
The, project invol~es;: constniC:tion of a UV disinfectant chamber to meet EPA
requrrements. The ptoject was in progress at year end and will be completed in 2014.
7. Subsequent to Decelll]jer 31, 2013, the City has secured permanent financing on the
Brush Creek Sewer Project and Brink Myers Road Project. Since inception of the
projects, tlie City has used short term financing of no more than two years to provide
funds for the capital additions.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements comprise three components;
government-wide financial statements (Pages 12 through 13), fund financial statements
(Pages 14 through 18), and notes to the financial statements beginning on Page 23. This
3
report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide Financial Statements. The govemment-wide financial statements (Pages
12 -13) are designed to provide readers with a broad overview of the City's finances, in a
manner similar to a private-sector business.
The statement of net position (Page 12) presents information on all of the City's assets and
liabilities, with the difference between the two reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of wheth.er the financial position
of the City is improving or deteriorating. · ·
The statement of activities (Page 13) presents information showing how the government's net
position changed during the most recent fiscal year. All changes in net assets are reported as
soon as the underlying event giving rise to the charJ.ge occurs, regardless of the liming of
related cash flows. Thus, revenues and expenses ~e reported in this statement for some items
that will only result in cash flows in future fiscal periods (e. g., uncollected taxes and earned
but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (gove1'11111ental activities)
from other functions that are intended to recover allor. a significant portion of their costs
through user fees and charges (business-type (JCfivttiqs).'Jhe governmental activities of the
City include general gove~ent, public safety) str~ets, edonolliic Cievelopment, and culture
and recreation. The bu~iJ:iessS:tY!Je activities of th~ City include .s~wer service.
'• 1' -:-».'.\'.'.-,':',
Fund Financial Stat\lxn".nts Afilnd, is a grouping q'j'related accounts that is used to maintain
control over resoilrces th~thave/been segregated for specific activities or objectives. The
City, like other state and '10,9al gg'veITunents, ll~.es fuhd accounting to ensure and demonstrate
compliance Wth fin;mce-refoteq .legal requiri;:ments. All of the funds of the City can be
dividedjntO tWo categories: governmental funds and proprietary funds. ···-' -," '« .,._,. ::.
Govef.11n1e11tal F1111ds Go11e1'/1/nentalfunds are used to account for essentially the same
functions 'reported as gover11inental ai:tivilies in the government-wide financial statements.
However, uri]ike the goverllrnent-wide financial statements, governmental fund financial
statements foclls. on near-teh~ iriflows and outflows of spendable resources, as well as on
balances ofspenclable resoz1rces available at the end of the fiscal year. Such information may
be useful in evaluating a.g6vernment's near-term financing requirements.
Because the focus df governmental funds is naITower than that of the government-wide
financial statements, it is useful to compare the information presented for govemmental fimds
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 fund balances
4
provide a reconciliation to facilitate this comparison between governmental fimds and
governmental activities.
The City maintains five individual major or 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, transportation
special revenue fund, capital projects fund, debt service fund, and the reserve fund, each of
which are considered to be major funds. Data from the other eleven governmental funds are
combined into a single, aggregated presentation. Individual fund data. for each of these non
major governmental funds is provided in the form of combining statements elsewhere in this
report.
The City adopts an annual appropriated budget for its general fund for the ()peration of the
sewer department. A budgetary comparison statement ~EIS been provided for the general fund
to demonstrate compliance with this budget. ·
': ' ' . . .
The basic governmental fund financial statements cari be found on Pages 14 through 18 of
this report. ·
Proprietary Funds The City maintains one type of proprietary.fw:id. Enterprise fimds are
used to report the same functions presenteCI as bz1siness-type activities in the government
wide financial statements. The City uses ent~rpris~ funds to accmu;1t for its sewer service
operations. · · ·· ·
Proprietary funds provici!'lili~.:s.ame type of in:fi:>rination as the government-wide financial
statements, only in more detaif:Theiproprietary fu];id is a major fund of the City.
·'···. ;,··.'. l· .. :·_·:·: -.·,'
The basic propriet~; fuha finan~i'El! statements can be found on Pages 19 through 21 of this
report. .,_, ,..
Age11cy;.F1111ds The only agency funds held by the City was for court bonds paid by
defericlarits. The court bond's banl( account was equal to the detail of the bonds held. ',. ,, ' '
N~testo the Financial St~tements
The notes provide additionatfaformation that is essential to a full understanding of the data
provided in the 'gc)'vernmentiWide and fund financial statements. The notes to the financial
statements can be found oir Pages 23 through 51 of this report.
Other Information ·
In addition to the basic financial statements and accompanying notes, this report presents
certain required supplemental information concerning the City's infrastructure reporting. As
recommended by American Public Works Association, the modified approach for
infrastructure was developed as a compromise to provide an alternative to depreciating
eligible infrastructure assets. The basic premise behind the modified approach is that no
5
depreciation is incurred if infrastructure assets are being maintained or preserved at a certain
level. The City provides an up-to-date inventory of eligible assets by location, type and
physical parameters and performs replicable condition assessments, triennially. Results are
summarized using a measurement scale, seen on Pages 52 -53 of this report. Estimated
amounts needed to maintain and preserve these assets at the City's established service level
are budgeted for annually.
The combining and individual fund statements referred to earlier in connection with non
major or governmental funds are presented on Pages 57 through 60 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator ofa,government's
financial position. In the case of the City, assets exce¢di:d liabilities by $8,818;002 at the
close of the most recent fiscal year.
Gover11111e11talActivities Governmental activitiesincr~a~~d the City's net assets by $839,040.
'• ," ', ' ' ' '
Busi11ess-type Activities The change in. net assets for busiiless"type activities increased net
assets by $29,108. The net assets for bllsiness-type activities in the current fiscal year are
$3,304,666. . ..
Financial Analysis of the Government's Funds
As noted earlier, the City, ii~·~s 'fund accounting• to ~nsure anddemonstrate compliance with
finance-related legal requirements:". .
,t,'. ;·'
i•"''
Go11er11111e11tal F1i11d~ 'Tliil:focus af the City's gov~fiin1e11tal fimds is to provide information
on near-term inflows, outflo)Vs,;and balancc;:s ofspendable resources. Such information is
useful in assessing the City's.financing requirernents. In particular, unreserved fund balances
may s".J:Ve as a useful measure ofa government's net resources available for spending at the
end,,qf the fiscal year. · ·
, .. ,:· ·::>::'
As 1116Iiµon~d earlier in this. analysis, at the end of the current fiscal year, the City's
governn1~!1tal funds reported combined ending fund balances of $4,645,593. Of that,
$2,695,929 is 11011-spendabfo, restricted or assigned for various purposes.
. .
The general fund is the• c;hle'f operating fund of the City. At the end of the current fiscal year
the general fund ballli),be was $960,434. As a measure of the general fund's liquidity, it is
useful to compare both unreserved fund balance to total fund expenditures. Umeserved,
undesignated fund balance represents 28% of total general fund expenditures.
The City's fund balance of the general fund increased by $381,165 during the current fiscal
year. The City's 2013 revenues and transfers in from other funds totaled $4,475,487 which is
$191,502 higher than 2012. The City's 2013 expenses and transfers out to other funds totaled
$4,094,322, which is $221,934 less than the prior year.
6
The debt service fund has a total fund balance of $1, 120,082, all of which is reserved for the payment
of debt service. There was a net increase in the debt service fund balance of $78,542. Expenses in the
debt service fund exceeded revenue by $120,863. This was offset by transfers to the debt service fund
of $214,000.
The capital projects fund has a total fund balance of $394,641. There were considerable expenditures
on capital projects during the year on Brink Myers Road, The notes payable in connection with Brink
Myers Road and Brush Creek Sewer were refinanced during the year.
The City uses capital assets to provide servic.es Jo citizens; consequently, these assets are not
available for future spending. Although the City's investment in its 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 assetsthemselves cannot be used to liquidate these liabilities.
CITY OF PARKVILLE, MISSOURI
NETASSETS SUMMARY
DECEMBER 31, 2013 AND 2012
Govemment:al -Activities Business-~Ee Activities Total
2013 2012 2013 2012 2013 2012
Cash $ . 4,872,416 $ 4,852, 167 $ 1, !06,308 $ 1,187,684 $ 5,978,724 $ 6,039,85 I
Account Receivables 1,744,044 1,634,372 105,141 98,781 1,849,185 1,733,153
Capital Assets 16,399,235 15,294,659 4,119,971 3,919,507 20,519,206 19,214,166
Other Assets 244,779 240,331 82,499 90,097 327,278 330,428
Total Assets $ 23,260,474 $ 22,021,529 $ 5,413,919 $ 5,296,069 $ 28,674,393 $ 27,317,598
Account Payables $ 478,014 $ 216,862 $ 259,545 $ 32,917 $ 737,559 $ 249,779
Uriearned Revenue 1,590,255 1,550,000 1,590,255 1,550,000
Bonds and notes Payable 15,528,413 15,415,214 1,834, 129 1,992,127 17,362,542 17,407,341
Other Liabilities 136,456 165,157 15,579 15,579 152,035 180.736
Total Liabilities 17,733,138 17,347,233 2,109,253 2,040,623 19,842,391 19,387,856
Net Position 5,527,336 4,674,296 3,304,666 3,255,446 8,832,002 7,929,742
Total Liabilities
and Net Position $ 23,260,474 $ 22,021,529 $ 5,413,919 $ 5,296,069 $ 28,674,393 $ 27,317,598
7
CITY OF PARKVILLE
STATEMENT OF ACTIVITIES SUMMARY
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
Govemmcntul Activities Business-L).'.EC Activities Totnl
2013 2012 2013 2012 2013 2012
Progrnm Revenues
Charges for Services $ 519,975 $ 558,668 $ 995,785 $ 1,026,169 $ 1,515,760 $ 1,584,837
Operating Grants und
Contributions 56,650 56,650
Capital Grunts and
Contributions 462,702 443,229 462,702 443,229
General Revenues
Property Taxes 1,392,706 1,378,901 1,392,706 1,378,901
Franchise Tuxes 846,520 834,696 846,520 834,696
Sales Tuxes 1,408,629 1,461,532 1,408,629 1,461,532
Investment Eandngs 36,372 57,930 36,372 57,930
Intergovcmmental 317,827 58,582 317,827 58,582
Sewer Admin Fee 100,000 75,000 100,000 75,000
TIF 408,625 419,707 408,625 419,707
FEMA 217,450 217,450
Other 168,238 .. 193,023 I 0,404 6,61 I 178,642 199,634
Total Revenues 5,661,594 5, 755,368 1,006,189 1,032,780 6,667,783 6,788,148
Expenses
General Government 1,003,472 1,351,454 1,003,472 1,351,454
Public Safety-Police 1,098,927 1,041,953 1,098,927 1,041,953
Public Safety-Court 135,530 139,918 135,530 139,918
Public Works • : 1,030,345 973,772 l,QJ0,345 973,772
Economic Development 274,998 294,161 3,268,274 3,507,097
Depreciation 243,545 248,436 243,545 248,436
Amortization 20,833 20,833
TJF 413,460 415,237 413,460 415,237
Interest and Fees 290,939 315,463 290,939 315,463
Other Capital Expenditures 154,291 348,415 154,291 348,415
Financing Costs 174,616 174,616
Other 28,308 28,308
Se\vcr 949,512 851,31 I 949,512 851,31 I
Total Expenses 4,840,956 5,157,117 949,512 851,31 I 5,790,468 6,008,428
Change in Net Assets Before Transfer 820,638 598,251 56,677 181,469 877,315 779,720
Transfer 27,569 (27,569)
Change in Net Assets After Transfer $ 848,207 $ 598,251 $ 29,108 $ 181,469 $ 877,315 $ 779,720
8
Proprietary Fu11ds The City's proprietary funds provide the same type of infommtion found
in the government-wide financial statements, but in more detail. The net assets of the sewer
service at the end of the year total $3,304,666. The sewer fund had revenues exceeding
expenditures by $29,108 after transfer in 2013. This compares unfavorably with an increase
in the net assets of$181,466 in 2012.
Capital Asset and Debt Administration
Capital Assets The City's investment in capital assets for its governmental and business-type
activities as of December 31, 2013, totals $20,519,206. The largest capital expenditure was
connected with the Brink Myers Road project in the amount of approximately $980,000
which rebuilds the retaining wall. A legal settlement of $1,075,012 was received as
reimbursement for the cost of rebuilding a retaining wall ip.2012.
City of Parkville, JY[issouri .
Capital Assets (Net ofDllpr~ciatiou)
Land
Buildings and Improvements
Machinery and Equipment
Infrastructure
Construction in Process.·
Total
Governmental
Activities
2013
$ . 869,880
3 310108 . '·.' ' ... :''.
336 363
'. ' ' .·',•
3,410,]08
8.472·:776
$16.399:235
·'Business-type
activities
2013
$ 59,975
1,973,411.
72,315
''· l,547,465
466.805
$ 4.119.971
Total
2013
$ 929,855
5,283,519
408,678
4,957,573
7.743.129
$20.519.206
Additional information on the City's capital assets can be found in Note 5 of this report.
9
Long-Term Debt At the end of the current fiscal year, the City had total debt outstanding of
$17,363,436.
General Obligation Bonds
Certificates of Participation
NID Limited Obligation
City of Parkville, Missouri
Outstanding Debt
Governmental Activities Business-type Activities
0013 20P 2013 2012
$2,025,000 $2,290,000 $ - $
5, 150,000 5,385,000
Total
?013
$2,025,000
5, 150,000
Temporary Notes 8,460,000 7,855,000 8,460,000
1,595,000 Revenue Bonds (SRF) 2004A 1,595,000 1,735,000
Capital Leases/
Lease-Purchase
Deferred Amounts
Total
159,940 . 170,018 159,940
(]06.587) Cl 14,786) 80,083 87 108 (26.504)
lli,52 . .8Al1 $15415,?,JA $1 8350':! $1.m 126 $.17,363436
2012
$2,290,000
5,385,000
7,855,000
1,735,000
170,018
. (27,678)
$l].407.3AQ
The general government indebtedness increased $113, 199 and the business government
indebtedness decreased $157,103.
Economic Factors and Next Year's Budgets and Rates
City of Parkville revenue for 2014 is projected to show modest gains over 2013 as economy
activity within the City and the region continues to improve. The City's Property Tax
revenue will increase by slightly. pver I% over 20.13. This continues a pattern of stable real
estate values coupled .with ari iJ.lcreasing pace ofJ.lew construction since 2011. A dramatic
increase in residenti?l .co,nstructioi;J.began in early 2013 and is continuing into 2014, with new
building permits beingi,ssµf!d at a,'p,ace not seen since.before the recession. At the same time,
residential property sales h~ve .~trerigthened with the improving real estate market. This
bodes welt for C!tyreveriu.e for 2014 and beyond as the tax base continues to grow.
Commercial construction has aJso begun to increase with several projects expected to begin
develppment during 2014: These propertie~ should produce additional property and sales tax
r~yenue in future years. AJthe same fone, vacancy rates for existing conunercial properties
have re!Ilfilned relatively low;'with a fairly strong market demand for the vacated commercial
space that does occur. These :increases in residential and commercial properties should add
about 3% to the property taic J:mse in 2015. Since franchise taxes correlate with the number
of homes and cpn:uµercial buildings in use, this revenue should keep pace with continued
development. The strong construction environment will ensure that building permit fees
exceed 2014 budget expectations.
While the overall economy has improved, the City's sales tax base has come under pressure
from competition from businesses located outside the City, including a large grocery store
and expansion of a nearby specialty shopping district. The overall effects of this competition
appear to have been minimal, with sales tax receipts for the first 5 months of 2014 exceeding
the same 2013 period by more than 5%, which, in tum, was up 2.5% from 2012. If this trend
continues, 2014 sales tax revenue will be 5% or more above the level that was budgeted.
Overall, the City's General Fund 2014 revenue is expected to exceed the budgeted total.
IO
As in prior years, the City has budgeted cautiously, holding 2014 revenue and expenditure
budgets at near 2013 levels. However, City personnel remain optimistic, expecting overall
modest, but positive growth in revenue for 2014. Revenue receipts for the first 5 months of
2014 give confidence that the budgetary goals will be met or exceeded. City expenditures
are well within levels anticipated in the 2014 budget.
Contacting the City's Financial Management
This report is designed to provide our citizens, taxpayers, customers and creditors with a
general overview of the City's finances and to demonstrate the City's accountability for the
money it receives. If you have questions about this report or need additional financial
information, contact the City Clerk's office, Parkville, Missouri.
11
CITY OF PARKVILLE, MISSOURI
STATEMENT OF NET POSITION
DECEMBER 31, 2013
Assets
Cash and Cash Equivalents
Restricted Cash and Investments
Receivables, Ne\ of Allowance for Uncollectibles
Taxes
Accounts
Deferred Charges
Governmental Busines~.<F§p~
Activities Activities ·· Total
·\.::·.'.::::·:.>, ..
$ 3,652,955 $ 1,077,970 $ 4, 730,925
1,219,46.f 28,33&> 1,247,799
./: ... ':
1,p:1~;~27
·· t1srt17
143,04~>
101,736'
105 141 ;>.:: '
81,906
593
1615 827 •:::(;:',·:/·:
233,358
224,949
102,329 Prepaid Items
Capital Assets Not Being Depreciated
Land
. . . . . . 869,880 , ...
•·. 59;975 929,855
Constmction in Progress
Infrastmcture
Capital Assets, Net of Accumulatefff)'<iiJr~ciation
Buildings and Improveme'}t$ .
Machinery and Equipmeiit< .·.
Infrastmcture
Total As.s.etsI '
Liabilities .•.••. i\·········•·•'•'•'•'·••••<t)\···········•···· ···•. \•·•·.
Accounts Pay~W~ and Other Ctirr~titLiabiliti¥s
Accmed Interestfowable · · · · ·
Customer Deposit~ >
Unearned Revenue
Accmed Vacation
Other
Bonds and Notes
Due Within One Year
Due in More Than One Year
Total Liabilities
Net Position
Invested in Capital Assets, Net of
Capital Relaied Debt
Restricted for
Debt Service
Capital Projects
Reserve
Endowment Fund
Unrestricted
Total Net Position
·••.• 8;47~;77p
\ 3,375;6ss<
··:-'j''.:.-;::::'y··
:3310 108 ~ .... ;, '
32?,087
$5~ 731
•• /%;3;260,474
$
478,014
102,700
1,590,255
43,422
4,334
520,000
15,008,413
17,747,138
870,822
1,120,082
394,641
1,070,966
557,014
1,499,811
5,513,336 $
466,805 8,939,581
3,375,653
1,973,411 5,283,519
72,315 407,402
1,547,465 1,583,196
5,413,919 28,674,393
259,545 737,559
2,094 104,794
13,485 13,485
1,590,255
43,422
4,334
150,590 670,590
1,683,539 16,691,952
2,109,253 19,856,391
2,245,018 3,115,840
28,338 1,148,420
394,641
1,070,966
557,014
1,031,310 2,531,121
3,304,666 $ 8,818,002
The accompanying notes are an integral part of the financial statements.
12
Functions/Programs
Primary government:
Governmental Activities
General Government
Public Safety -Police
Public Safety -Court
Public Works
Economic Development
Depreciation
Amortization
TIF
Interest und Fees
financing Cost
Other Cnpitnl Expenditures
Totul Govemmentnl Activities
Business-type Activities
Sewer
Total Business-type Activities
Totnl Primary Government
CITY OF PARKVILLE, MISSOURI
STATEMENT OF AVTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2013 Net (Expense) Revenue und
Program Revenues Changes in Net Assets
Operating Capirnl Primary Govemn1ent
Charges for Grants and Grunts and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total
$ I ,003,472
1,098,927
$ 253,370 $
266,605
135,530
1,030,345
274,998
243,545
20,833
413,460
290,939
174,616
• 154,291
4,840,956
949.512
949,512
$ 5,790.468
General Revenues
Property Ta\'.
Franchise Tax
Sales Tax
519,975
995.785
995,785 .
$ 1,515,760
Unrestricted Investment Earnings
IntergoVernmentul
Se\ver Admin Fees
TIF
MiscellaneoUs
Other
Total General Revenues
Change in Net Assets
Transfer
Net Assets, Beginning of the Year
$
$
$
462,702 $ (287,400) $
(832.322)
(135,530)
(1,030,345)
(274,998)
(243,545)
(20,833)
(413,460)
(290,939)
(174,6 I 6)
(154,291)
462, 702 (3,858,279)
462,701 (3,858,279)
J.392,706
846,510
1,408,629
36,372
317,827
100,000
408,615
18,917
149.321
4,678,917
820,638
27,569
4,674,296
Net Assets, End of Year $ 5,512,503
The accompanying notes are an integral part of the financial statements.
$
13
46,273
46,273
46,273
10,404
10,404
56,677
(27.569)
3,275,558
3.304,666
$ (287,400)
$
(832.322)
(135,530)
(1,030,345)
(274,998)
(243,545)
(20,833)
(413.460)
(290,939)
(174,616)
( 154.29 I)
(3,858,279)
46,273
46,273
(3,812,006)
1,392,706
846,520
1,408,629
36,372
3 I 7,827
100,000
408,625
18,917
159,725
4,689,321
877,315
7,949,854
8,827,169
CITY OF PARKVILLE, MISSOURI
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2013
Trnnsporlntion CnpitnL · .Do bi-Other Total
General Reserve Specinl Revenue Projcctii_/ ScrVib~,· · ._Govcn1mcntnl Govcn1mcntnl
Fund Fund Fund Fuhd . Fund · .. Funds
Assets
Cush and Cush Equivalents $ 939,751 $1,070,966 s 239,45;!·.': $394,641 $ 517,297 s >490 848
Restricted Cash Investments 19,63} 642,814 ss!'.bw
Rcccivoblcs, Net of Allo\VllUCc
for Uncollcctiblcs
Tuxes 1,003,968 611,859
Accounts Rcccivnblc 3,660 ._,"
Prepaid Items 101,736 -·-.
T otnl Assets $2,049,115 $ i;11J,970 s 1,047,862
Liabilities and Fund Bnlnnce
Liabilities
Accounts Poynblc $ 583 $ 230,491
Unearned Revenue 651,305
Other Liabilities
Total Liabilities 651,888 230,491
Fund Bnlunccs
Nonspcndnblc
Prepnids
Restricted
Capitol 282,099 394,641
Debt Service 1,120,082
Assigned
Capital Purposes 557,014
Special Revenue 260,357
Unassigned
General Fund 1,070,966
Total Fund Bulunees 1,070,966 282,099 394,641 1,120,082 817,371
Total Liabilities nnd
Fund Bulunces $2,049,115 $1,070,966 $ 383,642 $394,641 Sl,771,970 s 1,047,862
The accompanying notes are an integral part of the financial statements.
14
Funds
$ 3,652,955
1,219,461
1,615,827
128,217
101,736
$ 6,718,196
$ 478,014
1,590,255
4,334
2,072,603
81,736
676,740
1,120,082
557,014
260,357
1,949,664
4,645,593
$ 6,718,196
CITY OF PARKVILLE, lVIISSOUill
RECONCILIATION OF THE BALANCE SHEET OF THE
GOVERN!VIENTAL FUNDS TO THE STATEMENT OF NET ASSETS
DECEMBER 31, 2013
Total Fund Balance in Governmental Fund Balance Sl:i.;:ef·•
Amounts reported for governmental activities in the ~f!J:.\.emenf(
of net assets are different because: ·:::-:=:--------_::.::.:-
Capital assets used in governmental ac;:tiyities are not fi;i~¢i'!I
resources and therefore are not repdrtedin.the funds. .
Long-term liabilities, including bonds paia~!iJ: hf€ri9t9ue
and payable in the curren\JJeriod and th~refqfe ~re ii()f .
reported in the func:!s (N6fe'.2) ..... .
Other Liabilities
Deffered Charges
Net Ass¢ts·.·BfGo'<er~~~~f:1··~~f1t11fiJ§;t··········
16,399,235
(15,528,413)
(146,122)
143,043
$ 5,513,336
The accompanying notes are an integral part of the financial statements.
15
CITY OF PARKVILLE, JVIISSOURI
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Revenues
Taxes $
Licenses and Permits
Intergovernmental
Charges for Services
Fin es and Fees
Special Assessments
Investment Earnings
Grants
TIF Revenue
Sewer Service Fees
Miscellaneous
Total Revenues
Expenditures
Current
General Government
Public Safety -Police
Public Safety -Court
Public Works
Economic Development
Debt Service
Principal
Interest
FOR THE YEAR ENDED DECEMBER 31, 2013
.. ,:.·.·
Transportation Capital/·. Debt
General Reserve Special Revenue Proj'cti , Service
,,',,,•,,
Fund Fund Fund Fund. •> f.und
2,776,648 $ -$ 328'479
250,482 -.·-·
60,621 -257,206 -
25,155 -- -
257,911 133
327,420
18,240 8,547
4,594 -
--
100,000 -
53,960 -
3',547,611 664,579
/).812,781 -85,954 - -
1096361 -- - -' '··:·.·····,
135i$30 ---
1,047,828 >· - - - -
274,998 • - - - -
- - --500,000
- - -219,402 281,209
The accompanying notes are an integral part of the financial statements.
16
Other
Governmental
Funds
$ 2,002
2,888
-
8,561
-
8,670
6,550
408,625
-
70,706
507,502
28,781
2,566
12,517
-
-
-
Total
Government
Funds
$ 3,647,855
253,370
317.827
25,155
266,605
327,420
36,372
135,282
408,625
100,000
174,166
5,642,677
1,027,516
1,098.927
135,530
1,060,345
274,998
500,000
500,611
CITY OF PARKVILLE, !VIISSOURI
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Other
TIF Expense
Financing Costs
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Note Proceeds -Refinancing
Premium on Bonds
Notes Retired -Refinancing
Transfers In
Transfers (Out)
FOR THE YEAR ENDED DECEMBER 31, 2013
General
Fund
3,367,498
180,113
-
Reserve
Fund
Transportation
Special Revenue
Fund
Capital .,:·
Project~./·····
Fund::·
. Debt
Service
Fund
4,233
-98,8~:(:> 17~'~i~ .i~
--'-=="-
284, 778 \t;94,970 785,442
(120,863)
.~·.·:····
8,460,000
23,431
(7,855,000)
104,023 92];W7(5 \ · .·•... 4sb;qqq
(726,824) .. (104,02$}
i&9;764
(1,016,000)
Total Other Financing Source! "' 201,052 • ti45,977 ·. >>.(926,236) 732,454
214,000
(14,595)
199,405
Net Changes in Fund Balances
After Other Financing Sources
Fund Balance, Beginning of Year
381,16$>
579,269
345,977
' .-·_.,..-
. · .. · 72'.4,989
(288,044) 337,499 78,542
570,143 57,142 1,041,540
o,;n 434 Fund Balance, End ofYear $ ---, $ 1,070,966 $ 282,099 $ 394,641 $ 1,120,082
The accompanying notes are an integral part of the financial statements.
17
Other
Governmental
Funds
$
413,460
1,187,402
1,644,726
(1,137,224)
234,368
(131,271)
103,097
(1,034, 127)
1,851.498
817,371 $
Total
Government
Funds
4,233
413,460
174,616
1,287,178
6,477,414
(834. 73 7)
8,460,000
23,431
(7,855,000)
2,020,031
(1,992, 713)
655,749
(178,988)
4,824.581
4,645,593
CITY OF PARKVILLE, MISSOURI
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITillS
DECEMBER 31, 2013
Amounts reported for governmental activities in the statement
different because:
Net Change in Fund Balances -Total Government Fund~·· }.
Governmental funds report capital outlays as expi;r\~\tyres. Hp)"'ever, in the
statement of activities the cost of those assets is aJJocated>over their
estimated useful lives and reported as depreciation expeil~~-This is the net
:::u:::::::a:;a'.::~~:::~x:::~in(:.:e~~~~~~i~l~t~~ff~.~) .. ~:~~id~$·······~~rrent
financial resources to governmental funds, {whill} the cl}p~yment of the
principal of long-term debt •g.pp~y'.11es the dirrefit finailC\i\Yresources of
governmental funds. Nej~h~r trari$~ption, how~y7r, has any effect on net
assets. Also, governmiin!~l . fonds report the ~~~9t of issuance costs,
premiums, discounts . and ~i~jt~r itll~<J"'B~P • d.e?i>is first issued, whereas
these amounts arerdeferred artd' a~orti'ied in tli~ Statement of Activities.
This is the ni;tiiri;~~iiiaf;~ppd pfiiid}p\IJ paym~iits and retired certificates of
participatjqtj\ ...... · . . · ·
Refinan~ing :;~h~~~\ion in ;~~~ the ·~ond proceeds exceeded the bonds
retired reported as ii)qrease in tll~ fund balance.
Some expenses repo~gd:w4~: Statement of Activities do not require the
use of current financial >resources and, therefore, are not reported as
expenditures in governmental funds.
Other
Change in Net Assets of Governmental Activities
$ (178,988)
1,104,537
500,000
(605,000)
(5,419)
33,077
$ 848,207
The accompanying notes are an integral part of the financial statements.
18
Assets
CITY OF PARKVILLE, lVIISSOURI
STATEMENT OF NET ASSETS
PROPRIETARY FUND -SEWER SERVICE
DECEMBER 31, 2013
Current Assets
Cash and Cash Equivalents
Restricted Cash and Investments
Accounts Receivable
Prepaid Hems
Total Current Assets
Noncurrent Assets
Deferred Charges
Ca pi la! Assets
Land
Buildings and Improvements
Construction in Progress
Machinery and Eqmpme1nt.•
Infrastructure
Less Accumulated DejJreci~l:ig!l
Total Capital Assets
Total Nonc;JfibriiA.~sets
Total Aii~ets
Liabilities
Current Liabilities·•··
Accounts Payablb~pdpU1er Curr~Ai Liabilities
Accrued Interest Payuble .
Customer Deposits Payablf ·
Current Portion ofRevenue)36nds Payable
Current Portion of Leases Payable
Total Current Liabilities
Noncurrent Liabilities
Revenue Bonds Payable, Nel
Lease Payable
Tola! Noncurrenl Liabilities
Total Liabilities
Net Position
Invested in Capital Assets, Net of Related Debt
Restricted
Debt Service
Unrestricted
Total Net Assets $
81,906
59,975
5,252,588
466,805
254,441
2,005,990
(3,919,828)
4,119,971
4,201,877
5,413,919
259,545
2,094
13,485
140,000
10,590
425,714
1,534,189
149,350
1,683,539
2, 109,253
2,245,018
28,338
1,031,310
3,304,666
The accompanying notes are an integral part of the financial statements.
19
CITY OF PARKVILLE, MISSOURI
STATEIVIENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
PROPRIETARY FUND -SEWER SERVICE
FOR THE YEAR ENDED DECEMBER 31, 2013
Operating Revenues
Charges for Sales and Services
Sewer Charges
Total Operating Revenues
Operating Expenses
Cost of Sales and Services
Depreciation and Amortization
Total Operating Expenses
Operating Income
N onoperating Revenues (E)q:ieii\§~~)
Interest Revenue
Interest Expense
Other Income
Loan Fee
Transfer Out
Transfer In
Change in Net Position
Total Net Position, Beginning of Year as Adjusted
Total Net Position, End of Year
$ 995,785
995,785
609,883
295,393
905,276
90,509
5,872
(34,324)
4,532
(9,912)
(33,832)
56,677
(48,431)
20,862
29,108
3,275,558
$ 3,304,666
The accompanying notes are an integral part of the financial statements.
20
CITY OF PARKVILLE, MISSOURI
STATEMENT OF CASH FLOWS
PROPRIETARY .FUND -SEWER SERVICE
FOR THE YEAR ENDED DECEMBER31, 2013
Cash Flows from Operating Activities
Receipts from Customers
Payments to Suppliers
Net Cash Provided by Operating Ar.t1v1t11,,.<
Cash Flows from Capital and Related Financing Ac1·1v11ue.
Payments on Leases Payable
Acquisition of Capital Assets
Sewer Plant Construction in Progress \ • .•...
Principal Paid on Capital Debt < i
Interest Paid on Capital Dept \\ //
Other Income • ) t.
Net Cash (U§e4)by Fin~ri6ipg Activitiei
·. '.":'-::-:-··.. · .. -.. -_::_-_,_., ..
Cash Flows from Investing AcliYJtiel\. \. ... . ;·•···
Interest Received.... ·····\. < ···· .. </.<Y?·•
N~fC~~h P~~\ifd~ci by I~V~~ting Activities
(Decrease)i~d~~lj and Cash ~tj~iyalen;s>··
Cash, Beginning 6f' )'"~[lr
Cash, End ofYear
Reconciliation of Operating1ncome to Net Cash
Provided by Operating Activities
Operating Income
Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities
Depreciation and Amortization Expenses
Changes in Assets and Liabilities
Accounts Receivable
Accounts Payable
Net Cash Provided by Operating Activities
(10,079)
(20,862)
(257,417)
(140,000)
(52, 154)
4,532
(475,980)
5,872
5,872
(81,376)
1,187,684
$1,106,308
$ 90,509
295,393
6,360
(3,530)
$ 388, 732
The accompanying notes are an integral part of the financial statements.
21
CITY OF PARKVILLE, MISSOURI
ST A TEMENT OF ASSETS AND LIABILITIES
AGENCY FUND
DECEMBER 31, 2013
Assets
Cash-Checking and Savings
Total Assets
Liabilities
Due to Others
Total Liabilities
M:i\Jlii;ipaI
co11rt
$ I 1.833
The accompanying notes are an integral part of the financial statements.
22
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporti11g E11tity
The City of Parkville, Missouri (the City), is incorporated under the provisions of the
State of Missouri as a fourth class city, which operates under an elected Mayor/Board
of Aldermen form of government. ·
Govem111e11t-Wide a11d F1111d Fina11cial State111e11ts
The government-wide financial statements (i.e., the statement of n~t assets and the
statement of activities) report information on all :of the activities of the government.
Governmental activities, which normally,: · are supported by taxes and
intergovernmental revenues, are reported sf:parately from business-type activities,
which rely to a significant extent on fees arid charges for support.
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. 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 partjcular function or sefiment. Taxes and other items not properly
included among program.revenues are reported instead as general revenues.
' ' . .
Separate finahclhl·. statements are provided' for governmental funds and proprietary
funds. Major indivi~11~lgoyemmental funds and the major individual enterprise fund
are reported as separate columns in the fund' financial statements .
. Meas11re111e11tFoc11s, Basis of Acco1111ti11g, a11d Fi11a11cia/ State111e11t Prese11tatio11
Th() government-wide .financial statements are reported using the economic resources
measurement focus 'and the accrual basis of accounting, as are the proprietary fund
financial statements. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognizedas revenues in the year following the year the taxes are levied.
Grants and· similar items are recognized as revenue as soon as all eligibility
requirements irriposed by the provider have been met.
23
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Measurement Focus, Basis of Accounting, and Financial Statement Presentation -
Continued
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within.the current period or soon
enough thereafter to pay liabilities of the current period. A 90-day availability period
is used for revenue recognition for all governmental fund revenues except property
taxes for which a 30-day availability period is used. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expendih!Ies related to compensated absences . and
claims and judgments, are recorded only when paynient is due,
In applying the susceptible to accrual concept to intergovernmental revenues, the
legal and contractual requirements of the numerous individual programs are used as
guidance. There are, however, essentially.two types ofthesefevenues. In one, monies
must be expended for the specific puwose orproject before any amounts will be paid
to the City; therefore, revenues are recognized )Jased. upon the expenditures recorded.
In the other, monies are virtually unrestricted as to purpose of expenditure and are
usually revocabk. only f9: failure to comply with prescribed requirements. These
resources are reflected as revenues at the time of receipt, or earlier if the susceptible
to accrual criteria are met.
Property taxes, sales t[JXeS, franchise taxes, interest associated with the current fiscal
period, and certain st11te : and federal grants and entitlements are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Only the '.portion of special assessments receivable due within the current
fiscal period is considered to be susceptible to accrual as revenue of the current
·. period. All other reve1me items are considered to be measurable and available only
when .cash is received; by the City. While property taxes are shown on the balance
sheet as cUrrent assets. of the City, they are not recognized as revenue at year end
because statutory pro~isions prohibit their use until the year for which they were
raised and budgeted.: Instead, they are offset by deferred revenue accounts.
24
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
1Yfeasure111e11t Focus, Basis of Accom1ti11g, and Fbza11cial Statement Prese11tatio11 -
Co11tbzued·
The City reports the following major governmental funds:
General Fund -This 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.
Transportation Special Revenue Fund -This fund is used to account for the
sales taxes collected and a county tax distribution for capital improvements
and the expenditures for the related items,
Capital Projects Fund -This fund accounts for the financing and acquisition
and construction of various citywide improvements.
Debt Service Fund -This fund accounts for the accumulation of resources for,
and the payment of, principal and interest on long-term general obligation
debt of governmental funds. Revenue .arid expenses for each of the several
debt service obligations are kept separate and accounted for independently of
the otherp]Jligations so that funds available for each debt service obligation
are used only forth at ob! igation. . .
Em6rgellby Reserv\: Fund-This fund isused to account for financial reserves
that are held by the City as.;i reserve for future projects or other needs.
' '' ,, ·. '·--'
The City rep~rts the f6n¢wing maj;r proprietary fund:
Sewer Service -Tlus .Amel accounts for the provision of waste water and
sewer servic~s .. to the general public. All activities necessary to provide such
services are accounted for in this fund, including administration, operations,
maintenance, financing and related debt service, and billing and collection.
As a general ruleth~effect of inter-fund activity has not been eliminated from the
government:wicle financial statements. Elimination of these charges would distort the
direct costs aridprogram revenues reported for the various functions concerned.
Amounts reported as program revenues include I) charges to customers or applicants
for goods, services, or privileges provided, 2) operating grants and contributions, and
3) capital grants and contributions, including special assessments. Internally
dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
25
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Measurement Focus, Basis of Accounting, and Financial Statement Presentation -
Continued
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprfrtary fund's principal
ongoing operations. The principal operating revenues of the se'Yer fund are charges to
customers for sales and services. Operating expenses for the sewer fund include the
cost of sales and services, administrative expenses, and depreciation oncapital assets.
All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's
policy to use restricted resources first, then unrestricted resources as they are needed.
Net Position Classifications
' ··.:, '
In the city-wide financial statements,' equity is classified as nefassets and displayed in
three components: · ·
. : __ ·: .. ,.... '.'.··''
1. N ef invc~tll1ellt in capital assets -Consisting of capital assets, net of
accumull\ted depreciation and reduced by the outstanding balances of any
bonds, mortgages, notes or other borrowings that are attributable to the
acquisiti~ii, construction or improvement of these assets .
. 2. Restricted net position -Consisting of net position with constraints placed
on their use either by (I) external groups such as creditors, grantors,
contribufors, or laws orregulations of other governments; or (2) law through
constitutional provisions or enabling legislation. The City first utilizes
restricted resources to finance qualifying activities.
3. Unr~strictedj)et position -All other net position that do not meet the
definiticm of"restricted" or "net investment in capital assets".
26
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Fund Balance Classifications
The Governmental Accounting Standards Board (GASB) released Statement 54-
"Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54) on
March 11, 2009, which is effective for the City's fiscal year ending December 31,
2011. This Statement is intended to improve the usefulness of the amounts reported
in fund balance by providing more structured classifications. Under GASB 54, fund
balance is reported under the following five classifications:
1. Non-spendable Fund Balance -consists of .amounts that are not in a
spendable form or are required to be maintained intact.
2. Restricted Fund Balance -consiills of¥1ounts that can be spent only for the
specific purposes stipulated by external resource providers, constitutionally, or
thrqugh enabling legislation. The Restricted for Debt Service and Restricted
for Capital Projects balances reflect amounts that are restricted for debt
service and construction or o~er capital outlay projects.
3. Committed Fund Balance -consists offilnounts that can be used only for the
specific purposes determined by a formal action of the District's highest level
of decision-making authority (the Board of Aldermen) and do not lapse at year
end. The comillitted fund balance consists of general board reserves.
4. Asslgned Fund Balance -consists of amounts intended for a specific purpose
by the Board. of Aldermen that has been delegated authority to assign
amounts. This fund balance classification reflects funds assigned for capital
projects~ . · ·
5. Unassigned Fund Balance -consists of any remaining fund balance that has
not been reported in any other classification.
Caslz, Cash Equivalents and Investments
Cash and investments of the individual funds are combined to form a pool which is
managed by the Finance Department. Each fund's equity in the pool is included in
"cash and cash equivalents" in the financial statements. Investment earnings,
including interest income, are allocated to the funds required to accumulate interest. If
a fund is not required to account for its own earnings by law or regulation, the
earnings are allocated to the General Fund.
27
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Cash, Cash Equivalents and I11vestme11ts '--Co11ti1111ed
Missouri state statutes authorize the City, with certain restrictions, to deposit funds in
open accounts and certificates of deposit. Missouri state statutes also require that
collateral pledged must have fair market value equal to 100% of the funds on deposit,
less amounts insured by federal deposit insurance. Collateral securities must be held
by the City or a disinterested third party and may indude U.S. Government and
government agency bonds and securities; general obligation bonds, of any of the 50
states; general obligation bonds of any Missouri county, certain cities, and special
districts; and revenue bonds of certain Missouri agencies. Obligations pledged to
secure deposits are delivered to the banks' joint custody accounts at the custodial
bank. Written custodial agreements are required that provide, among other things,
that the collateral be held separate from the asset~ of the c.ustodial bank.
Statement of Cash Flows
The City's cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities' of three months or less
from the date of acquisition. ·
Receiliables and Payables
All trade accounts receivable are shown net of an allowance for uncol!ectable.
Management records a trade accounts receivable allowance based on percentages of
collection estimated [rom'the aging of acco.unts receivable. At December 31, 2013,
management detemiinedthat no allowance was necessary.
·.Governmental·· funds report unearned revenue in connection with receivables for
revenues that are not considered to be available to liquidate liabilities of the current
pi:riod. Governmental funds unearned revenue is reported as follows:
General Fund Property Tax Receivable
Debt Service f{rnd Property Tax Receivable
Property Taxes
$1,003,968
611.859
$1.615.827
Property taxes are legally restricted for use in financing operations of the ensuing
year. Accordingly, tl1e City defers revenue recognition until the year for which they
are to be used.
28
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Property Taxes -Co11ti1111ed
The City's property taxes are levied each November 1 based on the assessed value as
of the prior January 1 for all real property and personal property located within the
City. Property taxes are billed immediately following the levy date and considered
delinquent after December 31 following the levy date. •Assessed values are
established by county assessors, subject to review by the county's Board of
Equalization.
The City is permitted by Missouri state statutes tci levy taxes up to $LOO per $100 of
assessed valuation for general governmental services other than the payment of
principal and interest on long-term debt antj in unlimited amounts for the payillent of
principal and interest on long-term debt.
The tax levy per $100 of assessed valuation which supports the 2013 budget was:
General Fund
General Revenue -Temporary
. $ 0.4784
0.1759
$ 0.6543
Taxes receivable represent property taxes levied for 2013 and prior years that have
not yet been collected: The assessed value of property located within the City totaled
$190,251,216,
Prepayments
Oertainpa)'Illents to vendors reflect costs applicable to future accounting periods and
are recorded asprepaymentsin both government-wide and fund financial statements.
These item's are reported in the financial statements using the consumption method.
• J\ current asset for the prepaid amounts is recorded at the time of the purchase and the
expenditure/expense is' reported in the year which services are consumed. At fiscal
year end, because prepayments are not available to finance future governmental fund
expenditures, the furid balance is considered non-spendable in an amount equal to the
carrying value pf ~ie asset on the fund financial statements.
Restricted Caslz a11d I11vest111e11ts
The City is statutorily required to maintain customer utility deposits separate from
City assets. Restricted cash and investments are also set aside for debt service
payments and for required debt reserves.
29
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Unamortized Bo11d Issuance Costs a11d Bo11d Premium a11d Discount
On government-wide financial statements, issuance costs are deferred and amortized
over the term of the bonds using the straight-line method. Unamortized issuance
costs are recorded as a separate line item on the statement ofnetassefa,.
Bond premiums are deferred and amortized over the term of the bonds using the
straight-line method, which approximates the effective interest method. Bond
premiums are presented as an addition to the face amount of the bonds ..
Deferred Outflowsll11jlows of Resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This Separate financial statement
element, deferred outflows of resources, represents a consumption of net position that
applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. Clirrently, the City does rtot have any item that
qualifies for reporting in this category. ·. ·
In addition to liabilities, the statemedt of financi'al' position and balance sheet will
sometimes report a: s.ePfil'~te section fot.defei-red inflows of resources. This separate
financial statement element, deferred inflows of resources, represents an acquisition
of net positioriffund balance that applies' to a future period(s) and so will not be
recognizecf~:i<an: inflow o'f resources (revenue) until that time. The govermnent has
one type of iteill.,< Which filise under the il1odified accrual basis of accounting that
qualifies for, reporting ~this category. Acc~rdingly, unavailable revenue is reported
in. the governme11tal funds balance sheet. The governmental funds report unavailable
revenues frcilTI .. property ta:X'es. These amounts are deferred and recognized as an
·inflow of resources in, the peri9d that the amounts become available.
Capital Assets
Capital assets, whic]i. include property, plant, equipment, infrastructure (e.g., roads,
bridges, sidewalks ,and similar items) and construction in progress are reported in the
applicable gciverninental or business-type activities columns in the govermnent-wide
financial statements.
As the City is a Phase III govermnent under Govermnental Accounting Standards
GASB 34, it has elected to exercise its option to forego retroactively reporting
govermnental infrastructure assets acquired prior to December 31, 2003.
Govermnental infrastructure assets on the statement of net assets include only roads,
bridges, sidewalks and similar items acquired subsequent to December 31, 2003.
30
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Capital Assets -Continued
Capital assets, excluding land, are defined by the City as assets with a cost of more
than $2,500 and an estimated useful life of at least one year. All land purchases are
capitalized regardless of cost. All purchased capital assets are valued at cost where
historical records are available and at an estimated historical cost where no historical
records exist. Donated capital assets are valued at their estimated fair market value on
the date received. ·
The costs of normal maintenance and repairs that do not add to the value of the asset
or materially extend the life of the asset are not capitalized. ·
Major outlays for capital improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of the business-type
activities is included as part of tl1e capitalized value, of the assets constructed. If the
expenditure is depreciable, it will be written off from the time it is put in service.
The City defines infrastructure as. th~ basic physical assets that allow the City to
function. The assets include the street hetwork, storm drainage network, and
pedestrian and vehicle bridges and buildings 'combined with the site amenities such as
parking and landscaped areas used bftlieCity in tl1e conduct of its business. Each
major infrastructi,Jid n~twp~k can be divided into subsystems. For example, the street
network can be subdivided' into pavement, curbs, gutters, sidewalks, land, medians,
etc. These· net:W~rks and subsystems are.· not delineated in the basic financial
statements.
Goyernmental streeiand p~king lot assets are reported using the modified approach
a,s ·defined in GASB Statem~nt 34 for infrastructure reporting of these assets. When
.·. using the modified appro'ach,•only those projects that add efficiency or capacity to
street and parkirig lot assets .are capitalized. Street and parking lot assets are not
d~preciated. Expenditures that preserve those assets are expensed.
Capital assets are depreciated using the straight-line method over the following
estimated useful lives:
Buildings
Sewer Plant and Collection System
Machinery and Equipment
31
20-40 years
20-50 years
5 -7 years
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED
Co111pe11sated Absences
City policies permit full-time employees to accumulate sick pay benefits and vacation
time based on the number of years of service. Accumulated \facation payable is
accmed when incurred in the government-wide financial statements and proprietary
fund statements. In the governmental fund financial statements, a liability is accmed
when it has matured, for example, as a result of employee resignations and
retirements.
Lo11g-Ter111 Obligatio11s
In the government-wide financial statements, imd proprietary fund types in the .fund
financial statements, long-term debt and 6ther Icing-term obligations are report~d as
liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net assets. Bond premiums and discounts, as well
as issuance costs, 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 reported as deferred charges and
amortized over the term of the related·'debt. ·
In the fund financia] statements, governmental fund types recognize bond premiums
and discounts, as well as ,bond issuance costs as of the bond issuance date. The face
amount of debtissued is reported as a financing source. Premiums received on debt
issuances are rep6qed as pther financing sources while discounts on debt issuances
are reported as oiher fina6Cirig use~. Issuance costs, whether or not withheld from the
actual debtpr.oceedsr~ .. ceived, are reported as debt service expenditures.
' '
· Use of Esti!11'ate~
,The preparation of f~ancial statements in conformity with accounting principles
generally accepted ill the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of .contingent assets and liabilities at the date of the financial
statements and. the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
32
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 2 -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
Compliance with State Rules 011 il'ftu:imum Percent of Re11e1111e Allowed from
Traffic Fines
In fulfillment of HB103, amending Section 302.341.2 RSMO; effective August 28,
2013, requiring municipalities to report the percent of anmial general operating
revenue derived from fines and court costs for traffic violations: the City does not,
and is not required to account separately for traffic fines and court costs from the total
police fines and court costs prior to August 28, 2013 ih order to show compliance
with the 30% maximum allowed by the above statute. However, total court revenue
from all sources for 2013 was $257,910, compared to General Fund annual operating
revenue of $3,547,610, or 7.3%, well below the 30% maximum allowed.
Explanation of Certain Differences between the Govermilental Fund Balance
Sheet and the Govemment-Wide Statement of Net Assets (Page 15)
The governmental fund balance sheet.includes a reconciliatfon bety;een fund balance
-total governmental funds and net assets pfgoyernmental activities as reported in the
government-wide statement of net ass".tS. One e:le111entof thafreconciliation explains
that "long-term liabilities, including bqµds payable, arenot due and payable in the
current period aµd J)ierefore are not l'ep'ofted in the, funds". The details of this
$(15,508,071) differel1ceare as follows: ·
Bonds Payable ,
Certificates of Participation Payable
Neighborhodd Improvement District Limited General
()bligation Temporary Notes
Accrued}nt.erest Payable
Compensat~d Absences ·
Issuance Discount and Refunding
Cost ofissuance'
Net Reconciling Item for Long-term
LiabHities (Page 15)
33
$ (2,025,000)
(5, 150,000)
(8,460,000)
(95, 700)
(43,422)
106,587
159.464
$ (15,508 071)
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2013
NOTE 2 -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS-CONTINUED
Expla11atio11 of Certain Dij]ere11ces between the Governmental Fund Statement of
Revenues, Expenditures and Changes i11 Fund Balances a11d the Govemment-Wide
Statement of Activities (Page 18)
The governmental fund statement of revenues, expenditures, . and changes in fund
balances includes a reconciliation between net changes in fund balances -total
governmental funds and changes in net assets of governmental activities as reported
in the government-wide statement of activities. One element of that reconciliation
explains that "Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense." The details of this difference are
as follows: . . .
Capital Outlay:
Machinery and Equipment
Brink Meyer Road Improvements
Interest Capitalized · ·
Brink Meyer Road
Brush Creek
Depreciatip~ Expense .
NeLRe~or1cilh1g Item for Capit!fl
Outlays/Depreciation (Page 18)
·' . : i
$ 151,630
980,049
120,822
95,581
(243.545)
$ J.104 537
Another element ofthat n~conciliation states that "The issuance of long-term debt
(e.g., bonds, Ieases),proyides cmTent financial resources to governmental funds, while
the repa)'mentof the principal of Io11g-term debt consumes the current financial
resources ofgovernmentalfunds. Neither transaction, however, has any effect on net
. assets. Also, governmental funds report the effect of issuance costs, premiums,
discounts, and sil11ilar items when debt is first issued, whereas these amounts are
deferred and amortized in the statement of activities". The details of this difference
are as follows:
Refinancing of Brush Creek Sewer NID
New Bond Indebtedness
Deb,t Retired with Refinancing
Total
Refinancing of Brink Meyer Road NID
New Bond Indebtedness
Debt Retired with Refinancing
Total
34
$ 4,935,000
( 4.855.000)
$ 80.000
$ 3,525,000
(3.000.000)
$ 525.000
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2013
NOTE 2-RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS-CONTINUED
Principal Repayments
General Obligation Bonds
Certificates of Participation
Total
$ 265,000
235.000
$ 500.000
Another element of that reconciliation states that "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." The details of this
$(5,419) difference are as follows:
Compensated Absences
Amortization ofissuance Costs
Amortization of Deferred Refunding Difference
Amortization of Bond Discounts
Other
Net Reconciling Item Relating to Certain
Expenses (Page 18)
NOTE 3-STEWARDSµIP,.COMPLIANCEAND ACCOUNTABILITY
Budgets a11d]J11dgetary Ac~o1111ti11g
$ 15;229
(12,634)
(5,417)
(2,782)
185
$ (5.419)
Missouri statutes require that all political subdivisions of the State prepare an annual
budget. GovernmentalfµIlds required to have legally adopted annual budgets are the
general fund, the special revenue funds, and the debt service fund. Legally adopted
.ari:rtual budgets are not required for the capital projects fund and the permanent fund.
· Iludgeted expenditur~s cannotexceed budgeted revenues and unencumbered positive
fund balances as reqllired by Section 67.010 RSMo. The appropriated budget is
prepared by fund, function, and department. State statutes set the legal level of
budgetary control at the fund level (i.e., the level at which expenditures may not
legally exc(;!ed appropriations). Department heads may malce transfers of
appropriations within their departments. Upon written request, the City Administrator
or the Boar.ci ofAldermen may by ordinance transfer part or all of any unencumbered
appropriated baJance from one department to another. The reported budgetary data
represents the final approved budget as adopted by the Board of Aldermen. There
were no amendments to the budget in 2013.
35
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 4 -DEPOSITS AND INVESTMENTS
As of December 31, 2013, the City had the following deposits and investments:
US Treasuries and Agency Securities
Deposits:
Checking and Money Market
Reported
Amount/
Fair Value
$ 175,149
5.803.575
$5.978.724
Reconciliation of Government-wide Statement of Net Assets to total deposits and
investments:
Cash and Cash Equivalents
Restricted Cash and Investments
Total Deposits and Investments
Interest Rate Risk
$ 4,730,925
1.247.799
$5.978.724
Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an investJn.1::r1t:.~pe City does not pave a formal investment policy that limits
investment ma¥1ties as a II!eans of managing its exposure to fair value losses arising
from incre~sing<interest rates. It is the City's practice to place operating funds in
either money market accounts or savings accounts. All longer-term investments are
placed in Treasury securitieshavmg relatively short maturities. These consist of funds
whose use is restricted and are unlikely to be needed prior to maturity (e.g. the
J?c;:wson Trt1st). .
• Credit Risk
Missouri statutes prohibit municipalities from investing in derivative, leveraged, or
speculative securities,; City agents invest funds for restricted debt reserves and
unexpended debt proceeds in money market funds.
Custodial CreditRfsk -Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the City's
deposits may not be returned. As of December 31, 2013, the carrying amount of the
City's deposits was less than pledged securities plus federal deposit insurance. It is
City practice to require banks to provide collateral equal to any deposited amounts
exceeding federal depository insurance limits.
36
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 4 -DEPOSITS AND INVESTMENTS -CONTINUED
Custodial Credit Risk-I11vest111e11ts
For an investment, custodial credit risk is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. At December 31,
2013, the City's investments were not exposed to custodial credit risk.
I
37
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 5 -CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013, was as follows:
Governmental Activities
Capital Assets not being Depreciated
Land
Construction in Progress
Infrastructure
Total Capital Assets not being Depreciated
Capital Assets being Depreciated
Buildings and Improvements
Machinery and Equipment
Infrastructure . •
Total Capital Assets beingilepreciated
Less Accumulated Depreciatio·n for
Buildings arid Impr~yements .
Machinery arid Equipri'ien(
Infrastruc.ture . ·
Total Accumulated Depreciation ·
Total Capital Assets being Depreciated, Net
Governmental Activities Capital A.~sets, Net
Business-type Activities. .
Capital Assets not being Depreciated
Land
Construction in Progress
Total Capital Assets not being Depreciated
Capital Assets being Depreciated
Buildings and Improvements
Machinery and Equipment
Infrastructure
Total Capital Assets being Depreciated
Less Accumulated Depreciation for
Buildings and Improvements
Machinery and Equipment
Infrastructure
Total Accumulated Depreciation
Total Capital Assets being Depreciated, Net
Business-type Activities Capital Assets, Net
$
Beginning
Balance
869,880
7,276,324
3,375,653
ll,521,857
. 4,153,323
1,842,031
. 44,663
6,040,017
. (743,930)
.. (1,514,314)
(8,932)
(2,267,176)
3,772,841
$ 15,294,698
$ 59,975
59,975
4,838,888
233,579
2,381,388
7,453,855
(2,63 8,679)
(171,584)
(784,060)
(3,594,323)
3,859,532
$ 3,919,507
38
Increases Decreases
$ $
l,196,452
I, 196,452
151,630
151,630
(99,285)
(142,984)
(1,276)
(243,545)
(91,915)
$ 1,104,537 $
$ $
466,805
466,805
20,862
20,862
(226,798)
(I 0,542)
(49,863)
(287,203)
(266,341)
$ 200,464 $
$
Ending
Balance
869,880
8,472,776
3,375,653
12,718,309
4,153,323
1,993,661
44,663
6,191,647
(843,215)
(1,657,298)
(10,208)
(2,510, 721)
3,680,926
$16,399,235
$ 59,975
466,805
526,780
4,838,888
254,441
2,381,388
7,474,717
(2,865,477)
(182, 126)
(833,923)
(3,881,526)
3,593, 191
$4,119,971
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2013
NOTE 5 -CAPITAL ASSETS -CONTINUED
Depreciation expense related to the functions/programs of the primary government is as
follows:
Governmental Activities
General Government
Public Safety
Public Works
Parks
Nature Sanctuary
Channel 2
Total Depreciation Expense
Business-type Activities -Sewer Operations
$ 124,479
54,244
31,753
27,701
2, 116
3,252
$ 243,545
$ 287,203
Construction in Progress consists of costs incurred to construct infrastructure assets (i.e. -
streets, curbs, retaining wall, storm drainage network, and similar items) for two
development projects: Brink Myers Road and Brush Creek Sewer. Both of these real estate
developments are.currently owned in part by financial institutions and developers and are
at various stages ofcompletion.
A retaining wall connected with Brink Myers Road collapsed in 2009. The City received
$1,075,012 in 2012 in connection with a legal settlement. The amount received has been
used to rebuild the retaining wall in 2013.
39
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2013
NOTE 6-LONG-TERM OBLIGATIONS
,r,i;ii '.i!Jv
A1 't
The following is a summary of the debt transactiol,lsfi(\5lind~, notes a
.. :~?''
for the year ended December 31, 2013: ,,·j!f~I;,,,
,i1 •• l.4~!Ji)11h 1~Hiii1J.
jjlil·
ii
Beginning
Govem111ental Activities:
Balance ,,, Additions -==~--iiqmrir·
'1ii1!jif
Bonds Payable ~!'
General Obligation Bonds $ 2,290,000 $
Certificates of Participation 5,385,000
··i:p
Neighborhood l1nprove111ent DistrictiqP!~U~J~t~i~rji~1
Limited Obligation Temp Note 1:s·s~;ooo 8,46il;
1
ooo
'1'1)1•111 11 I:
Less Deferred Amounts irl[;r 1;11/J'l'I''"
for Issue Discounts , ~,~~~1~J~)11 a.,11 ~.. iii! t
for Deferred Refundin ·' 75,8481 "l~Ji.:)1jl%1n;1n:1i~ -
·jf!f!i ·~''-!<'
Governmental Acti i!Y'"'
~;;.
•" Ending
Balance
.,,,
$ 2,025,000 $
5,150,000
(7 ,855,000) 8,460,000
2,782 (36, 156)
5,417 (70,431)
Liabilities $ 8,460,000 $ (8,346,801) $ 15,528,413 $
Business-type Activl '"
Bonds payable '"'IYiilliih11, 'ttq1,!11.,j
Revenue Bonds (SRF) 20 ' "
Lease Purchase Agree1nent
Plus Deferred Amounts
87,108
$ $ (140,000) $ 1,595,000 $
(10,079) 159,940
(7,025) 80,083
Due
Within
One Year
270,000
250,000
(2,782)
(5,417)
511,801
140,000
10,590
for Issue Pre111iu111s
Business-type Activity Long-term
Liabilities $ 1,992,127 ;;;,$~~~~-$ (157,104) $ 1,835,023 $ 150,590
$2,025,000 in general obligation debt shown above is special assessment debt with
governmental commitment. For governmental activities, long-term debt is generally
liquidated by the general fund. The Neighborhood Improvement District Limited Obligation
Temp Notes shown above will in 2014 be refinanced as pernmnent financing as special
assessment debt with governmental commitment.
40
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 6 -LONG-TERM OBLIGATIONS -CONTINUED
Ge11era/ Obligatio11 Bo11ds
The City issues general obligation bonds to provide funds for the acquisition,
construction and renovation of major capital assets.
General obligation bonds currently outstanding consist oftl1e following:
General Obligation Bonds
Governmental Activities
Interest
Rates
Original
Issue
Series 2010 2.7% to 3.25% $ 2,785,000
Final
Maturity
Date
3/1/2020
·Principal
Payments
2,013.00
Outstanding
December 31,
2013
$ 265,000 $ 2,025,000
$ 265,000 $ 2,025,000
On December 23, 2010, the City refinanced ilie 2001 General Obligation Bonds. The
City issued $2,785,000 of new bonds to retire the old bonds. The interest rates on the
bonds vary from 2% to 3.25%. The annual requirements to amortize governmental
activities general obligation bonds outstanding as of December 31, 2013, are as
follows:
2014
2015
2016
2017
2018
2019 -2020
Governmental Activities
Principal Interest
$ 270,000 $ 51,363
275,000 46,256
280,000 40, 700
285,000 33,275
295,000 24,575
620,000 20,313
$ 2,025,000 $ 216,482
$2,025,000 in general obligation debt shown above is special assessment debt with
governmental commitment.
For governmental activities, long-term debt is generally liquidated by the general fund.
41
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 6-LONG-TERM OBLIGATIONS-CONTINUED
The State Constitution permits a city, by vote of two-thirds of the voting electorate, to
incur general obligation indebtedness for "city purposes" not to exceed 10% of the
assessed value of taxable tangible property and to incur additional general obligation
indebtedness not exceeding, in the aggregate, an additional 10% of the assessed value
of taxable tangible property for the purpose of acquiring rightscof-way, construction,
extending 'and improving streets and avenues and/or storm sewer systems, and
purchasing or construction of waterworks, electric, or other light plants, provided that
the total general obligation indebtedness of the city does not exceed 20% of the
assessed valuation of taxable property. The City debt limit does not exceed the State
Constitution limits. ·
De/eased Debt -Series 2004
In prior years, the City defeased these bonds by placing the proceeds of new bonds in
an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the liability for the defeased bonds is not included in the City's financial
statements.
Certificates of Participation
The City issued .c~rtificates of participation series 2006 in the original amount of
$6,405,000 withinterestrates ranging from 3.5% to 4.4% and with a final maturity in
2027. Principalpayments·are scheduled aiinually ranging from $75,000 to $490,000.
The balance atDecember ~1, 2013, is $5,150,000.
Proceeds from the certificates of partidipation were used for City Hall construction.
Rush Creek stabilization, lan.d acquisition and other scheduled capital improvements .
. : The annual requirertlents to amortize these certificates of participation are as follows:
, . . . I '
2014
2015
2016·
2017
2018
2019-2023
2024-2027
42
Principal
$ 250,000
270,000
290,000
305,000
330,000
2,005,000
1.700.000
$5.150.000
Interest
$ 215,097
204,890
193,758
181,781
168,840
604,083
173.140
$1.741.589
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 6-LONG.-TERM OBLIGATIONS-CONTINUED
Neighborhood Improveme11t District Limited Obligatio11 Tempormy Notes
The temporary notes on the Brush Creek Sewer Project and the Brink Meyer Road
Neighborhood Improvement District were refinanced during the year. The funds
were used to finance the costs of constructing sewer lines for the Brush Creek Sewer
Area and other related improvements, including interest and. issuance costs. The
funds were used for the Brink Meyer Road Neighborhood Improvement District were
for the extension of Brink Myers Road and the related retaining wall and the
extension of electric and water utilities.
The notes and interest thereon constitute a valid and legally binding indebtedness of
the City, payable from special assessments 011 property within the NIDs which is
benefited by the improvements. The faith, credit and resources of the City are
irrevocably pledged for principal and interest on the notes if the assessments are
inadequate to support annual debt payments.
Re11e1111e Bonds (SRF) 2004A
The City issued Sewerage System Re~enue Bbrtds Series 2004 in the original amount
of $2, 750,000 with interest rates ranging from 3.0% to 5.25% and with a final
maturity in 2025,,Pri]1cipw payments ares9heduled annually ranging from $30,000 to
$170,000. The, bala116e atDecember 31, 2013, is $1,595,000.
Bonds matfuili~611January,'1, 2015, and th'6reafter may be called at the option of the
City for redempiio.rl and, pa)'ffient prior w, 111aturity in whole or in part on any date
witl~theconsent ofthebimdholder,orcmeach June 1 and December 1, commencing
December +; 2013, at thi:i ;I·edemption priCe of 100% of principal amount of the bonds
,redeemed, plus accrued interest to the redemption date. Bonds maturing on January 1,
'2,019, January l, 2020, and Jarrnary 1, 2021, are not subject to redemption prior to
rnatiJrity. .
Series 2004A (SRF) Sewage System Refunding Revenue Bonds (SRF) are special,
limited obligations ofthe City payable solely from, and secured by a pledge of, the
net revenues. The taxing power of the City is not pledged to the payment of the
bonds. The bonds do not constitute a general obligation of the City or an indebtedness
of the City within the meaning of any constitutional, statutory or charter provision,
limitation or restriction.
The annual requirements to amortize these bonds outstanding as of December 31,
2013, are as follows:
43
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS -CONTINUED
DECEMBER 31, 2013
NOTE 6-LONG-TERM OBLIGATIONS-CONTINUED
2014
2015
2016
2017
2018
2019-2023
2024
Principal
$ 140,000
145,000
150,000
150,000
155,000
825,000
30.000
U.5-25.000
Interest
$ 79,938
72,938
65,688
58, 188
50,688
128,950
1.350
Lill 740
The Sewerage Revenue Bond ordinance requires that the Sewerage System Fund be
accounted for in a separate Enterprise Fund. If also requires that, after sufficient
current assets have been set aside to operate the system, all remaining monies held in
the Sewerage System Fund be segregated and restricted in separate special reserves
and accounts. In accordance with the bond ordinance, these bonds are serviced by the
Sewerage System Fund operations and are included as a liability of that fund.
Restricted assets of the principal. and interest account are to be used for payment of
current principal and interest on bonds. Restricted assets of debt service are available
to pay principal and interest in the evenfofa deficiency in the pnncipal and interest
account. Restricted assets of the depreciation .!ll}d replacemei\.t account are available
to operate, maintain, or improve the system, call bonds or for payment of debt service
in the event of a.~eficiency in other restricted assets.
Lease Purchase Agreement '' •, ',' ·,, ':
In July 2003, the City entered into a lease-purchase agreement wherein the City sold
its sewer pl!ll}t for $sss;ooo aiid leaseditback for a period of twenty-two years. The
proceeds from tjle lease-purchase were used to maim certain improvements to the
· sewer plant property. Under the lease the City will have the full use of the property
!ll}d will make rental payments, which will apply to the principal and interest under
the]ease.
Required payments under the lease purchase agreement on the sewer plant are as
follows:
2014
2015
2016
2017
2018
2019-2023
2024-2027
44
Principal
$ I 0,590
11, 126
11,689
12,281
12,902
74,997
26.355
$ 159.940
Interest
$ 7,866
7,330
6,767
6,175
5,553
17,282
1.329
LD.302
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 7 -RISK MANAGEMENT
The City is exposed to various risks of Joss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; employee injuries and illnesses; natural
disasters; and employee health, dental and accident benefits. To protect itself against
risks ofloss, the City is a member of Midwest Public Risk of Missouri (MPR), a not
for-profit corporation consisting of governmental entities incorporated in 1984 to
acquire insurance for its members. MPR operates as a purchasing pool and is not a
joint venture activity of the City. The City has no control over budgeting, financing,
management selection, or the governing body. MPR provides both conventional and
self-insurance coverage for its members, including medical, dental, property,
casualty, general liability, and workers' comp((nsation. The City participates in
property, casualty, general liability, and workers' compensation insurance coverage
through MPR. ,.
MPR manages the cash and investment pool, funded by insurance premiums, on
behalf of its members. MPR's investment pool consists of interest-bearing deposits,
U.S. Treasury strips, U.S. Governmental agency obligations, and collateralized
mortgage obligations.
, ,
In the event that a deficit occurs witl:J'respect to any fiscal year of MPR for which the
City was a participant at any time during sui:h year; and in the event that MPR
determines that an ass,essment is required if!' order to provide additional funds for the
obligations of MPR for such year, and fur!her, in the event that the City was covered
by the types 6fbenefits requiring the assessment during the time period in which the
assessment atose; the City is obligated to .pay its pro rata share of any such
assessment whether or ,not the City is a member of MPR at the time of such
assessment. Management of the City is not aware of any deficit situation in MPR that
':Vould require an accrual of a liability as of December 31, 2013.
MPR's financial statements are presented in its Comprehensive Annual Financial
Report for the year enc!ed December 31, 2013.
There has been no significant change in insurance coverage from the previous fiscal
year. Settled claims have not exceeded insurance coverage in any of the past three
years.
45
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 7 -RISK MANAGEMENT -CONTINUED
Investments -Trust Fund
The City was the recipient of funds from a resident's estate during the calendar year
2002. One-half of annual earnings are distributed to the City to be used on various
city capital projects. The funds were previously held by a trustee for the benefit of the
City. In 2011, the City took over management of the fund as a Special Revenue Fund.
By Resolution No. 12-01-13, the Board of Aldermen enacted a policy restricting the
use of the fund to follow the intentions of the original donor of the fimd. The balance
of the annual net income after distributions to the City isreinvested in the principal of
the fund. On December 31, 2013 the trust assets had an account balance of $571,303.
NOTE 8 -COMMITMENTS AND CONTINGENCIES
Litigation
The City is a defendant in various .lawsuits relating to easements, condemnations and
other matters as a result of the ordinary course of City. activities. The City's
management and legal counsel antici]Jate tlmtth(: potential clajms against t11e City not
covered by insurance, if any, resulting. from such •matters wollld not materially affect
tl1e financial position of the City. ··
NOTE 9 -INTER-Fp:Nf, ~~SACTIONS ..
I'·;:
Inter-fund transfers for file year ended December 31, 2013, consisted of the
following:
TrB.Qsfer from Capita) Projects Fund
Transferfrom Transportation Special Revenue Fund (Net)
Transfer to Debt Service Fund
Transfer to Non-Major Governmental Funds
' -· '
Transfer to General Fund (Net)
$(] 90.236)
$(736.000)
$ 214.000
$ 640.431
$ 71.805
Transfers areused to (I) move revenues from the fund that statute or budget requires
to collect them to the fund that statute or budget requires to expend them, (2) move
receipts restricted to debt service from the funds collecting the receipts to the debt
service fund as debt service payments become due, and (3) use unrestricted revenues
collected in the general fund to finance various programs accounted for in other funds
in accordance with budgetary authorizations.
46
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 10 -PENSION PLAN
Plan Description
The City participates in the Missouri Local Government Employees Retirement
System (LAGERS), an agent multiple-employer public employee retirement system
that acts as a common investment and administrative agent for local government
entities in Missouri. LAGERS is a defined benefit pension plan, which provides
retirement, disability, and death benefits to plan members and beneficiaries.
LAGERS was created and is governed by statute, section RSMo. 70:600 -70.755.
As such, it is the system's responsibility to adrnµllster the law in accordance with the
expressed intent of the General Assembly. TJ:te plan is qualified under the Internal
Revenue Code Section 401(a) and it is tax 9J(i:tnilt. ·.
The Missoi.Iri Local Government Employees R.etiJ"ement system issues a publicly
available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to LAGERS,
P.O. Box 1665, Jefferson City, MO 65102 or by calling l-800c447c4334.
Funding Status
Full-time employe~s ofthe City contribute.A% of their gross pay to the pension plan.
The June 30, 2013 statutorily required employer contribution rates are 3.9% (General)
and 4.3% (Police) of annual. covered payroll. The contribution requirements of plan
members are dete1n1ined l:Jy the governing body of the political subdivision. The
contribution proVisions of the poli!ical subdivision are established by state statute.
Amwal Pension Cost (A,PCJ and Net Pe11sio11 Obligation (NPO)
The subdivision's annual pension cost and net pension obligation for the current year
were as follows: ·
Annual RequiJ"ed Contribution
Interest on NefPension Obligation
Adjustrnentto Annual Required Contribution
Annual Pension Cost
Actual .. Contributions
Increase (Decrease) in NPO
NPO Beginning of Year
NPO End of Year
47
$ 62,067
$
62,067
62.067
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 10 -PENSION PLAN -CONTINUED
The annual required contribution (ARC) was determined as part of the February 28,
2011 and February 29, 2012 annual valuation using the entry age actuarial cost
method. The actuarial assumptions as of February 28, 2013 included: (a) a rate of
return on the investment of present and future assets of 7 .25% per year, compounded
annually (b) projected salary increases of 3.5% per year, compounded annually,
attributable to inflation (c) additional projected salary increases ranging from 0.0% to
6.0% per Y!'!ar, depending on age and division, attributable to seniority/merit, ( d) pre
retirement mortality based on the 75% of the RP-2000 Combined Healthy table set
back 0 years for men and 0 years for women, and (e) post-retiremenfmortality based
on 105% of the 1994 Group Annuity Mortality table set back 0 years for men and 0
years for women. The actuarial value of assets was determined using techniques that
smooth the effects of short-term volatility in the market value of investments over a
five-year period. The unfunded actuarial accrued liability js being amortized as a
level percentage of projected payrolls on a closed.basis. The amortization period as
of February 28, 2011 was 30 years for the General di.vision and 28 years for the
Police division. The amortization period as of February 29,2012 was 30 years for the
General division and 28 years for the Police division.
One-Year Trend Information
Year Annual PerCentage Net
Ended Pension ofAPC Pension
June 30, Cost CAPC) Contributed Oblioation
2011 $ 54,957 100.0% $ 0
2012 $ 61,229 100.0% $ 0
2013 $ 62,067 100.0% $ 0
The above assets ·ruid actuarial accru<:d Jiability do not include assets and present
value ofbenefits associated with the Benefit Reserve Fund and the Casualty Reserve
fund. The acti.iarial assumptions were changed in conjunction with the February 28,
2011, annual actuarial valuations. For a complete description of the actuarial
assumptions used in .the annual valuations, please contact the LAGERS office in
. Jefferson City, Mi~souri.
48
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 11-DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES
ASC Topic 820, Fair Value lv!easurements, defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Topic 820 also specifies a fair
value hierarchy which requires an entity to maximize the use of observable inputs and
minimize the use of unobservable inputs when measuring fair value. The standard
describes three levels of inputs that may be used to measure fair value.
Level I Quoted prices in active markets for identical assets or liabilities
Level 2 Observable inputs other than Level 1 prices, such as quoted prices for
similar assets or liabilities; quoted prices in active markets that are not
active; or other inputs that are observable or can be corroborated by
observable market data for substantially the full term of the as.sets or
liabilities . . ·.
Level 3 Unobservable inputs that are supported by little or no market activity
and that are significant to the fair value of the assets or liabilities
Following is a description of the valuation methodologies used for instruments
measured at fair value on a recurring basis and recognized in the accompanying
statement of fi11ancial position, as well as the general classification of such
instruments pursuant to the valuation hierarchy.
I11vest111e11ts
Wh"r~ quoted marke!t11ri<:~s ate available .in an active market, securities are classified
\Vithin Leveft o,f the ~aluation hieratchy. Level 1 securities include highly liquid
rnoney marketfurids, U.S: Treasuries and exchange traded equities and mutual funds.
' If quoted market pri9es are not available, then fair values are estimated by using
.pricing models, quoted prices of securities with similar characteristics or discounted
cash flows. Lever 2 securities include fixed income securities and pooled
investments. In certain cases where Level I or Level 2 inputs are not available,
securities are classified within Level 3 of the hierarchy. ,,·-,, ·'
49
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 11 -DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES -
CONTINUED
The following table presents the fair value measurements of assets and liabilities
recognized in the accompanying Statement of Financial Position measured at fair
value on a recurring basis and level within the FAS 157 fair value" 'erarchy in which
the fair measurements fall at December 31, 2013.
Government Securities:
Trust Fund
Debt Escrow
Fair Value
NOTE12-SUBSEQUENTEVENTS
!!·. ·j
The City has evaluated .. 1~1.!P~e![·l.l· .. e.nt events tht~,µgfl July 2 ,1i· .Ju1 1u111J,1"1/11 • .,flr111 ·i11ttr
financial statements wefe·"avarl ·.· · i:Ho be issued. 111111 '1' 4l!1
In June 2014, the'' rus ... ,,.;,.reek S,1,er Project limi~~;~1119bligation notes and the Brink Meyer
Road Project limited obli~~~on µ~~~~::~\'.\:~ refinanc,~a': Limited General Obligation Bonds of
the City were. ,.,iss1.1ed. Tl~~llJJ~bfiii~®i!"fgil!JR!!oilll'~ided111'pem1anent financing for the City. The
,1!0):l''il''!•lii·11'1Jl!i1'Pt:' ''l"'f'l'll\1 """H:; l11lt•11tr•'' refinanciri'gl:fra~sail' I" mourit"t"· e as follows:" fFJr ...
Brush 'ek Sewe
Brink M~~~r Road1
il!ill~
alMilr
• ,. .!•·ti'
Notes Retired
$4,935,000
$3,525,000
Bonds Issued
$5,375,000
$3,675,000
NOTE 13 -UPCQ.~r,~~J:J\ccouNTING PRONOUNCEMENTS
GASBS No. ,'67, Financial Reporting for Pension Plans-an amendment of GASB • Statement No.25, which is effective for financial statements for fiscal years beginning
after June 15, 2013, with earlier implementation encouraged.
GASBS No. 68, Accounting and Financial Reporting for Pensions-amendment of
GASB Statement No. 27, which is effective for fiscal years beginning after June 15,
2014, with earlier implementation encouraged.
50
CITY OF PARKVILLE, MISSOURI
NOTES TO BASIC FINANCIAL STATEMENTS-CONTINUED
DECEMBER 31, 2013
NOTE 13 -UPCOMING ACCOUNTING PRONOUNCEMENTS -CONTINUED
GASBS No. 69, Government Combinations and Disposals of Government
Operations, which is effective for government combinations and disposals of
government operations occurring in financial reporting periods beginning after
December I 5, 2013, with earlier implementation encouraged.
GASBS No. 70, Accounting and Financial Reporting for Nonexchange Financial
Guarantees, which is effective for reporting periods beginning after June I 5, 2013,
with earlier implementation encouraged.
51
REQUIRED SUPPLEMENTARYINFORMATION
Required supplementary information (RSI) .inch1des financial information and disclosures
that are required by the GASB but are not considered a part of the b1IBic financial statements.
Such information includes: · · · ·
• Modified Approach to Infr~structure Reporting
. .
• Budgetary Compfilifon Sc~~dule -General Fl.ind .· ... ··.· .-. ,• .
52
CITY OF PARKVILLE, MISSOURI
REQillRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2013
Information needed to support the use of the Modified Approach for Infrastructure Reporting:
Street Assets
The street condition rating is accomplished every other year or triennially. Every street of
Parkville is visually rated for observed structural conditions . to determine the level of
preservation need. The field rating reflects the condition of the type of street or parking lot
being reviewed. It is the City's goal to repair all streets rated at a 6.0 Cir above and to
maintain all street~ within the City at a service level of s:·o or below for each respective type
of street.
A field rating scale has been developed to indlcate t1i~uverall condition of the observed
street.
Indicates an equivalent of a new! y constructed street (crack sealing and minor patching)
2 Indicates slight imperfections in the stree.t condition (crack sealing, slurry sealing, and/or
patching)
3 Indicates some deterioration has occurred and minor maintenance may be required (street
needs various rep~s fo rnallitilln condition; patches; possible milling and overlay)
' '
4 Indicates notic~able deterioration maintenance is required (deterioration is significant and
visually noticeable; repair miU and overlay)
5 Indicat,es significant maintenance is required (considerable cracking, potholes or other
fatigue demands repair work and.overlay)
6 Indicates serious deficiency (deterioration mandates edge milling, to prevent total base
failure, n.eeds overlay)
7 Indicates severe deficiency (severe deterioration needing various repairs)
8 Indicates major failure (some good street is left within a total replacement street or
parking lot condition)
9 Indicates nearly total replacement is required (limited salvage of street or parking Jot area
is possible)
10 Indicates total replacement is required.
53
CITY OF PARKVILLE, MISSOURI
REQUIRED SUPPLEMENTARY INFORMATION -CONTINUED
DECEMBER 31, 2013
While the City desires to maintain these systems at higher levels in order to avoid significant
deferred maintenance costs, minimum acceptable condition levels have been defined as
having at least 80 percent of the streets at or below a rating of 5. The. following table
compares the minimum acceptable conditions levels with the actual condition levels for
current and prior years.
Fiscal Number of Streets Number of Streets Actual Condition Minimum
Year Rated Rated :S 5 Level Acceptable
Condition Level
2001 149 140 .. ·· 94.0% 80.0o/o
2003 174 154 ·. 88.5% 80.0% •
2005 186 175 94.1% 80.0%
2008 200 196 i98.0%. ·. 80.0%
2011 203 199 98.0% 80.0%
The City's goal is to continually improve .~he condition of its streets and parking lots. To
achieve this goal, it is necessary to perform· maintenance activities and replace those assets
that can no longer be economically maintained. To maintain the City's streets and parking
Jots at or above the statedn1iniJnum condition leyel, it is estimated that annual preservation
and replacement expendirures ml.1st exceed $400,000 armually. A total of $91,236 was spent
out of the Transpqrtation Fund .. The major expenditures were for crack seal project
($14,303), slurry seal project ($10,970) and the curb and sidewalk program ($65,963). An
additional $50,000 was carried .overto 2014 to. be combined with the 2014 budget
appropriatio!l to a~hieve better pricing on a large~ project. The following table compares the
estimateq expenditl.lres needed to maintair1the system at a minimum acceptable condition
level with actual amoll!lis.spent Jar th(! current and prior years.
Fiscal Estimated Actual
Year Ex11enses Ex11enses
2005 $ 246,519 $ 241,190
' 2006. $ 292,227 $ 292,579
2007 $ 246,819 $213,183
2008 $ 256,481 $ 246,886
2009 $ 233,000 $ 233,000
2010 $ 234,000 $ 190,172
2011 $ 205,000 $171,177
2012 $ 205,000 $ 193,150
2013 $ 400,000 $ 91,236
54
. CITY OF PARKVILLE, MISSOUIU
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY DISCUSSION
FOR THE YEAR ENDED DECEMBER 31, 2013
Budgetary Accounting
The City prepares its budget for the General Fund and Other funds on the cash basis of
accounting which approximates the accrual basis. Capital expenditures are budgeted and
shown similar to the way the expenditures appear in the Statement of Revenues,
Expenditures and Changes in Fund Balance. This basis is consistent with the basis of
accounting used in presenting the General Fund in the basic financial statements. All
unexpended appropriations lapse at year end.
Through the budget, the Board of Aldermen sets the direction of the City, allocates its
resources and establishes its priorities. The Annual Budget assures the efficient and effective
uses of the City's economic resources, as well as establishing that the highest priority
objectives are accomplished.
The Annual Budget covers the period from January 1, to December 31, and is a vehicle that
accurately and openly communicates these priorities to the community, businesses, vendors,
employees and other public agencies. Additionally, it. establishes thefoundation of effective
financial planning by providing resource planning, performance measures and controls that
permit the evaluation and adjustment of the Cify's performance.
The City's budget is .~r~p:ITed and based on yarious expenditure categories; personnel,
supplies and services, !Ilinor capital outlay and capital improvement programs. The first
three listed are ~bnsidered operational in nature or known as recurring costs. Capital
improvement projects ar~>. a~sf!t. acquisitions, ••. facilities, systems, and infrastructure
improvements>typicaJly over. $1,900 and/or those items 'outside' of the normal operational
budget. .These are known as one~tiil}e costs. ·
The City, collects and records revenue and expenditures within the Governmental Activities.
All furiai.Ilg,sources are kept separate for both reporting and use of the money. The General
Fund is where most City services are funded that are not required to be segregated.
The budget process begins as a team effort in June of each year. Then the individual
departments use projected revenue assumptions to prioritize and recommend the next fiscal
year's objectives. The City Administrator's Office review all budget proposals and revenue
assumptions, as well as all current financial obligations before preparing the document that is
proposed to the Board of Aldermen. The Board of Aldermen reviews the Proposed Budget
and the final adoption of the budget is scheduled for approval in December.
55
Actuarial
Valuation
Date
02-28-11
02-28-12
02-29-13
CITY OF PARKVILLE, MISSOUIU
NOTES TO REQUIRED SUPPLEMENT ARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
FOR THE YEAR ENDED DECEMBER 31, 2013
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress
(b)
(a) Actuarial (b-a) (c)
Actuarial Accrued Un-funded (alb) Annual
Value Liability Liability Funded Covered
of Assets Entry Age CUAALl Ratio Payroll
$186,859 $415,164 $ 228,305 45% $1,335,830
$288,350 $ 517,839 $ 229,489 56% $1,491,820
$446,213 $ 678,863 $ 232,650 66% $1,546,387
57
[(b-a)/c]
UAAL as a
Percentage of
Covered
Payroll
17%
15%
15%
OTHER SUPPLEMENTARY INFORMATION
58
CITY OF PARKVILLE, JVIISSOURI
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2013
SpecialRevenue •
Municipal Equip
Reserve
Guest Room
Tax
Nature
Sanctuary
· Piirk Par1aiJh4
•Donations Dedicatidr(
Court
Recoupment Fees
Police Training
Fees-LET
Assets
Cash and Cash Equivalents $
Restricted Cash and Investments
Other Receivables
Total Assets $
Liabilities
Accounts Payable
Fund Balances
Unreserved, Reported in:
Special Revenue Funds
Community Betterment
Total Fund Balances
$
I 1,438 $ 2,3 II
? 111 l.l&! $ -·-
3,281
-
3~281 i,3.it
$ 40,82 I $< >15,1\62 $ -. •$
-
-.... :.,·:··:· .. -,•.
45,462 \$ $ \40;821 $ $
$ -$
40,821' • 45,462
:·,:'-
4o;s21 45,462
Total Liabilities and Fund Balances ._.$: l.l&! $ >\ ... 2,3~i<,i • 40,821 $ ~ $ -$
The accompanying notes are an integral part of the financial statements.
59
35,510 $ 43.381
~ $ -13,381
-$
35,510 43,381
35.510 43,381
~ $ 43,381
Assets
Cash and Cash Equivalents
Restricted Cash and Investments
Other Receivables
Total Assets
Liabilities
Accounts Payable
Fund Balances
Unreserved, Reported in
Special Revenue Funds
Community Betterment
Total Fund Balances
$
$
Major
Projects
CITY OF PARKVILLE, MISSOURI
COMBINING BALANCE SHEET
NONlVIAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2013
Special Revenue
TIF Market Place
Development Development {'. Other.
285,712 $ 12,345 $ 11,034 )~ >> 2,~j~ •.•• $
Permanent
Fe,vson
Total· Project
490,848 / $
557,014
--
285,712 $ 12,345 'i'i7 014 L!;.lli~'·· :L~12.&83:§4<$ .· 490,848 $ __ ..
-
$
$
$ $ D0~91 $ -$
·-·,;\>:·,,::·::
63,378 11,034•./ 2,834 260,357
---,.-"'-·~·''"'···~··,,, .. ··-· ·· •• ·.,, .~--~"""----557,014
63,378 12);)!~ 11,034 2,834 260,357 557,014
Total
Nonmajor
Governmental
Funds
490,848
557,014
1,047.862
130,491
160,357
557.014
817.371
Total Liabilities and Fund Balances ,.$? 285,712 $ ~($ --, 11 034 $ 2,834 $ 490,848 $ 557,014 $ 1,047,862
The accompanying notes are an integral part of the financial statements.
60
CITY OF PARKVILLE, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Revenues
Inveslrnent Earnings
TIFRevenue
Legul Setllemenl
Miscellaneous
Total Revenues
Expenditures
Current
General Government
TIF Expense
Cupitul Oulluy
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
OU1cr Financing Sources (Uses)
Other
Transfers Jn (Out)
Total Other Financing Sources
Net Change in Fund Balances
~und Balances, Beginning of Year
Fund Balunces, End ofYeur
FOR THE YEAR ENDED DECEMBER 31,2013
..::·,:::. ~'
Special R~~;~~H~::
Other Fees Municipal Equip Nature . Purk Purklund
and Donations Reserve
Guest Room
Tux Sanctunr:~i<~:-:·; Donations .Dedication
$
$
$
10,525 25,295
10,525 25,295
····.:,:".:
10,525 .195,620
10,525 .1'95,620
•' ·-
<0..857)
170,431
.,_,._., .. _.:-,
C3,8s7)( , . v. 1'7n 43J)
(3,857)
3,857
$
·106
j:175
3,281
$ -$
2,003 ..
i,QpJ
20,000<·
20,000
,.,,,
i !1~.~~"/5 <>'
>2.o,ooo
20,000
2,003
309
$ 2,312 $
$., $
6,058( 6,592
..
6,058 · .. 6,592
11, 151
1,366 11,151
;··
4,692 (4,559)
(64,764)
(5,000) 43,938 (43,362)
(5,000) (20,826) (43,362)
(308) (25,385) (43,362)
41,129 70,847 43,362
40,821 $ 45,462 $
The accompanying notes are an integral part of the financial statements.
61
Court
Recoupment Fees
-
2,888
2,888
2,888
2,888
32,622
$ 35,510
$
$
Police Training
Fees-LET
3,356
3,356
90
90
3,266
3,266
40,115
43,381
CITY OF PARKVILLE, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Revenues
Investment Earnings
TIF Revenue
Legul Settlement
Miscellaneous
Toto! Revenues
Expenditures
Current
General Government
TIF Expense
Cnpitul Oulluy
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Oilier Financing Sources (Uses)
Other
Transfers In (Out)
Total Other Financing Sources
Net Change in Fund Bnlnnces
Fund Bui onces, Beginning of Year
Fund Bnlonces, End of Y cur
$
$
FOR THE YEAR ENDED DECEMBER 31,2013
Mnjor
Projects
2,286 $
2,286
Special Revenue
TIF Markel Pince
Development Development
92 $
408,625
9 $
Other · ., 'Totul
Pennnnent
Fe\vson
·project
$ 2,387 $ 6J:is21 $
i4Q8,625 :
___ 5~,2_0_4 .: 61,921 28,285
408,717 5,204 i&72,933 34,568
35,083
414,668
8,781
980,050 -.. , 1,186,195
980,050 i 4121.460 1,208 2,476 1,635,946
(1,199)
1,041,142 12,233
2,728 (1,163,013)
(68,621)
186,007
117,386
2,728 (1,045,627)
106 1,305,984
8,781
25,787
(14,288)
(14,288)
11,499
545,515
Total
Norunnjor
Governmental
Funds
8,670
408,625
90,206
507,501
43,864
414,668
1.186, 195
1,644,727
(1,137,226)
(68,621)
171,719
103,098
(1,034,128)
1,851,499
~$ ~$ l1£ll $ 2,834 $ 260,357 $ 557,014 $ 817,371
The accompanying notes are an integral part of the financial statements.
62