CITY OF VALLEY PARK, MISSOURI AUDIT OF FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2011 CITY OF VALLEY PARK, MISSOURI CASH BASIS FINANCIAL STATEMENTS TABLE OF CONTENTS EXHIBIT Independent Management's PAGE 1-2 Auditor's Report 3-7 Discussion and Analysis Basic Financial Statements: Government-Wide Financial Statements Statement of Net Assets - Cash Basis A 8 Statement of Activities - Cash Basis B 9 Statement of Assets, Liabilities and Fund Balances Arising From Cash Transactions - Governmental Funds C 10 Statement of Revenues, Expenditures and Changes in Fund Balances Cash Basis - Governmental Funds D 11 Reconciliation of Total Governmental Fund Balance to Net Assets of Governmental Activities - Cash Basis E 12 Statement of Net Assets -Cash Basis - Proprietary Funds F 13 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Cash Basis - Proprietary Funds G 14 Statement of Cash Flows - Cash Basis - Proprietary Funds H 15 I 16 Fund Financial Statements Governmental Funds Financial Statements Proprietary Funds Financial Statements Statement of Net Assets - Cash Basis - Fiduciary Fund CITY OF VALLEY PARK, MISSOURI TAB LE OF CONTENTS (CONTINUED) 17-36 Notes to Financial Statements Required Supplementary Information - Unaudited STATEMENT Statement of Revenues, Expenditures and Changes in Fund Balance Cash Basis - with Comparison to Budget - General Fund 1 37-41 Statement of Revenues, Expenditures and Changes in Fund Balance Cash Basis - with Comparison to Budget - Restricted Sales Tax Fund 2 42 Statement of Revenues, Expenditures and Changes in Fund Balance Cash Basis - with Comparison to Budget - TIF-Special Allocation FundPilots Account 3 43 44 Notes to Budgetary Comparison Schedules Other Supplementary Information: SCHEDULE Combining Statement of Assets, Liabilities and Fund Balances Arising From Cash Transactions - Non-major Governmental Funds 1 45-47 Combining Statement of Revenues, Expenditures and Changes In Fund Balance - Cash Basis - Non-major Governmental Funds 2 48-50 Combining Statement of Assets, Liabilities and Fund Balances Arising From Cash Transactions - Non-major Proprietary Funds 3 51 Combining Statement of Revenues, Expenditures and Changes In Fund Balance - Cash Basis - Non-major Proprietary Funds 4 52 Combining Statement of Cash Flows - Non-major Proprietary Funds 5 53 Robert E. Croghan, Michael P. Croghan Cynthia Croghan Croghan QCr~~,~~~ .Jr. CPA ~ CPA Backes A "11007 Manchester ACCOUNTANTS PROFE:SSIONAL CORpORATION Kirkwood. CPA Missouri phone 314 966-6644 fax Robert E. Croghan 3' 4 966-3074 CPA (Retired) INDEPENDENT AUDITOR'S REPORT Board of Aldermen City of Valley Park, Missouri Dear Members of the Board: We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Valley Park, Missouri CCity"), as of and for the year ended June 30, 2011, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City'S management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opimons. As described in Note 1 to the financial statements. The City's policy to prepare its financial statements on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position - cash basis of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Valley Park, Missouri, as of June 30, 2011, and the respective changes in financial position and cash flows - cash basis, where applicable, thereof for the year then ended in conformity with basis of accounting described in Note 1. 1 MEMBER: American Road 63122 ...1259 Institute of Certified Public Accountants Missouri Society of Certified PubUc Accountants Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 7 and 37 through 44 be presented to supplement the basic fmancial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Valley Park, Missouri basic financial statements as a whole. The combining nonrnajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. Certified Public Accountants Kirkwood, Missouri March 9, 2012 2 UNAUDITED City of Valley Park, Missouri Management's Discussion and Analysis For The Fiscal Year Ended June 30, 2011 The discussion and analysis of the City of Valley Park's financial performance provides an overview of the City's financial activities for the fiscal year ended June 30, 2011. The intent of this discussion and analysis is to look at the City's financial performance as a whole; readers should also review the notes to the financial statements to enhance their understanding of the City's financial performance. The financial statements of the City have been prepared on the pure cash basis of accounting, as applied to local governmental units, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Differences in the cash basis of accounting and accounting principles generally accepted in the United States of America arise in the recognition of revenue when received, rather than when earned, and the presentation of expenditures/expenses when paid rather than when incurred. The Management's Discussion and Analysis (MD&A) is an element of the new reporting model adopted by the Governmental Accounting Standards Board (GASB) in their Statement 34 Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments issued in June 1999. Financial Highlights Key financial highlights for the fiscal year ended June 30, 2011 include the following: . • • • • • • • The levee bonds were paid off March 2011 for the levee project through the U.S. Army Corps of Engineers. The City issued $6,055,000 worth of certificates of participation in December 2010 for storm water and road improvements. Grant received in the amount of $158,798 from the Municipal Parks Grant Commission for the Vance Trail Project. Grant received in the amount of $83,375 from the Missouri Department of Transportation for the Hanna Road Bridge. S1. Louis County Police contract renewed. Upgraded new software/equipment for sanitation billing The City's third tax increment financing district and approval of the 1411Marshall Road Development Plan by ordinance. This pan rebuilds storm water and road surface for a one block area on Marshall and creates a storm water system on Front Street and pays for distinctive street lights with banner arms, reimburses private developer for land acquisition in connection with multi-million dollar refurbishment of largest sales tax producer in the City. The City's net assets (cash basis) and the governmental funds ending balances (cash basis) were $10,735,159.51. This represents a 144.8% increase over the fiscal year ending June 30, 2010. 3 UNAUDITED Revenue and Expenditure Comparison for years Ending June 30, 2010 and 2011 6/30/2010 Revenue all Funds Taxes Licenses and Permits Charges for Services Fines and Forfeitures State Distributions Interest Certificate Proceeds Miscellaneous Total Expenditures all Funds Administrative Street Parks Community Development Police Court Department Planning and Zoning Mayor's Office Public Image Flood Redevelopment Emergency Management Sewer Lateral Operating Expenses - Utilities Debt Service - Principal Debt Service - Interest & Fees Total $ 5,719,833.37 313,941.81 426,142.43 83.45% 4.58% 142,297.05 211,326.68 6,334.64 6.22% 2.08% 3.08% 0.09% 33,981.37 $ 6,853,857.35 0.50% 100.00% 755,476.49 11.14% 655,475.03 25,985.52 598,143.19 1,033,332.29 98,092.61 14,312.85 12,804.98 4,] 78.70 9.67% 0.38% $ 6/30/2011 % $ 6,568,647.60 294,792.60 422,457.04 153,486.43 47.20% 358,855.56 8,250.73 5,926,674.85 184,581.53 $ 13,917,746.34 2.58% 0.06% 42.58% 1.33% % 8.82% 15.24% ].45% 0.21% 0.19% 0.06% $ 749,759.90 750,881.55 68,671.65 1,232,426.82 1,131,921.88 100,502.36 22,899.72 12,678.65 634.40 1,392,972.87 5,144.48 84,013.13 351,037.26 1,010,000.00 740,230.31 $ 6,781,199.71 20.54% 0.08% 1.24% 5.18% 14.89% 10.92% 100.00% 287,292.57 2,454.42 30,431.68 358,871.65 1,845,000.00 921,423.54 $ 7,515,850.79 2.12% 3.04% 1.10% 100.00% 9.98% 9.99% 0.91% 16.40% 15.06% 1.34% 0.30% 0.17% 0.01% 3.82% 0.03% 0.40% 4.77% 24.55% 12.26% 100.00% Using the Basic Financial Statements The City's basic financial statements consist of a series of financial statements and the associated notes to those statements. The statements are organized so the reader can understand the cash basis operations of the City as a whole. The "Basic Financial Statements" section includes government- wide financial statements, fund financial statements and notes to financial statements. The government-wide financial statements, consisting of the Statement of Net Assets (Cash Basis) and the Statement of Activities (Cash Basis), provide highly consolidated cash basis financial information and render a government-wide perspective of the City's cash basis financial condition. 4 UNAUDITED By showing the change in net assets (cash basis) for the year, the reader may ascertain whether the City's cash basis financial condition has improved or deteriorated. The changes which are discussed in this MD&A may be financial or non-financial in nature. Non-financial factors which may have an impact on the City's financial condition include increases in or erosion ofthe property tax base, current property tax laws in Missouri restricting revenue growth, facility conditions, and other factors. Government-wide Financial Analysis Net assets of the City at June 30, 2011, of $ 10,974,367.52 reflect the City's total assets of cash and investments (net). Net assets at June 30, 2011 of $ 631,852.13 is unrestricted. Governmental Funds Financial Analysis 6130/2011 6/30/2010 Revenues Collected Program Revenues Collected Charges for Services Grants General Revenues Collected: Property Taxes Franchise & Public Service Taxes Sales Tax Investment Income Miscellaneous Proceeds from Trustee Certificate Proceeds Total Revenues Collected $ 460,884.61 211,326.68 2,561,225.46 1,308,407.37 1,850,200.54 6,334.64 33,981.37 10,410.13 6,442,770.80 Expenses Paid Administrative Public Safety Streets and Sewer Park & Recreation Community Development Redevelopment Bond Principal Bond Interest and Fees Total Expenses Paid 791,917.50 1,131,424.90 739,488.16 25,985.52 598,143.19 1,392,972.87 1,010,000.00 740,230.31 6,430,162.45 $ 457,396.58 358,855.56 3,243,297.58 1,356,030.32 1,969,319.70 8,250.73 184,581.53 5,926,674.85 13,504,406.85 788,427.09 1,232,424.24 781,313.23 68,671.65 1,232,426.82 287,292.57 ] ,845,000.00 921,423.54 7,]56,979.14 2,497.81 Operating Transfers InlOut Excess of Revenues over Expenses Net Assets, July 1 Net Assets, June 30 5 12,608.35 6,349,925.52 4,372,625.64 4,385,233.99 $ 4,385,233.99 $ 10,735,159.51 UNAUDITED Business Type Activities 2009-10 Water Fund Revenue Expend itures Net Income/Loss Sanitation Fund Revenue Expenditures Net Income/Loss 2010-11 $ 59.21 $ 37.30 $ 59.21 $ 37.30 $ 421,437.47 351,037.26 $ 70,400.21 $ 413,302.19 358,871.65 $ 54,430.54 The net income of the Water Fund was $ 37.30. The Water Fund was sold in 2001 and is collecting residual balance due accounts. In 2004 the City transferred the residual balance to other funds. The Sanitation Fund experienced net income of $ 54,430.54. The Sanitation rates were increased by Ordinance in 1999 to continue to provide a high level for residential sanitation service. General Fund Budgetary Highlights On June 21, 2010, the City adopted its budget. Overall, revenues were 99% higher than projections. Expenditures were 98% higher than projections. Capital Assets and Debt Administration The City operates under the cash basis of accounting, therefore, capital asset purchases are recorded as expenditures and depreciation is not recognized. Capital assets are not reflected in the financial statements. At year end the City had debt in the amount of $ 13,406,350.99: Certificates of Participation Tax Increment Revenue Notes Capital Lease Obligations $ 6,055,000.00 7,200,000.00 151,350.99 Other Analysis The 3.1 mile levee project, designed and engineered by the U.S. Army Corps of Engineers, is completed. The City made final payments on its TlF revenue bonds related to this project during the year. 6 UNAUDITED Contacting the City's Financial Management While this Management's Discussion & Analysis is designed to provide a general overview of the cash basis financial condition and operations of the City, citizens, tax payers and creditors may want further details. To obtain such details, please contact Nathan Grellner, Mayor or Marguerite Wilburn, City Clerk at the Valley Park City Hall, 300 Benton, Valley Park, Missouri, 63088 or call 636/225-5171 during regular office hours, Monday through Friday, 8:30am to 4:30pm. 7 EXHIBIT A CITY OF VALLEY PARK, MISSOURI STATEMENT OF NET ASSETS - CASH BASIS JUNE 30, 20 II Governmental Activities ASSETS Cash and Investments Restricted Assets: Cash and Investments $ 392,644.12 Business-Type Activities $ 239,208.01 Total $ 10,342,515.39 Total Assets 631,852.13 10,342,515.39 10,735,159.51 239,208.01 10,974,367.52 239,208.01 25,659.69 6,715,674.92 3,305,830.45 7,194.74 288,155.59 631,852.13 LIABILITIES Liabilities: None NET ASSETS Restricted for: Bond Deposits Capital Improvements Debt Service Other purposes Sewer Lateral Unrestricted Total Net Assets 25,659.69 6,715,674.92 3,305,830.45 7,194.74 288,155.59 392,644.12 $ 10,735,159.51 $ The accompanying notes to financial statements are an integral part of this statement. 8 239,208.01 $ 10,974,367.52 Total City 7,515,850.79 $ The accompanying notes to financial statements are an integral part of this statement Net Assets - ending Net Assets - beginning Change in Net Assets General Revenues: Taxes Property Taxes Franchise and Public Service Taxes Sales Tax Investment Income Miscellaneous Certificate Proceeds Transfers between Funds Total General Revenues $ 358,871.65 358,871.65 Business-type Acti vities: Water Sanitation Total business-type activities: 870,736.07 413,302.19 413,339.49 37.30 457,396.58 1,232,426.82 287,292.57 1,845,000.00 921,423.54 7,156,979.14 9 $ $ - - $ $ Program Revenues Received Operating Grants and Contributions 294,792.60 153,4&6.43 9,117.55 s 788,427.09 1,232,424.24 781,313.23 68,671.65 $ Expenses Governmental Activities: Administrative Public Safety Streets and Sewer Park and Recreation Program Community Development Redevelopment Bond Principal Bond/Certificate Interest and Fees Total governmental activities: FunctionslPrograms Charges for Services and Sales CITY OF VALLEY PARK, MISSOURl STATEMENT OF ACTIVITIES - CASH BASIS YEAR ENDED JUNE 30, 20 II 358,855.56 - 358,85556 113,374.81 245,480.75 Capital Grants and Contributions $ $ $ $ 37.30 187,237.98 239,208.01 4,385,233.99 10,735, I59.51 (2,497.81) (2,497.81 ) - 54,467.84 54,430.54 54,467.84 51,970.03 $ $ s $ Business-type Activities 6,349,925.52 12,690,65252 5,926,674.85 2,497.81 3,243,297.58 I ,356,03032 1,969,319.70 8,250.73 184,581.53 (6,340,72700) . (287 ,29257) (1,845,000.00) (921,42354) (6,340,72700) 185,926.65 (1,232,426.82) (I ;078,937.& I) (667,938.42) (493,634.49) Government Activities $ $ $ $ 10,974,367.52 4,572,47197 6,401,895.55 12,6&&,154.71 5,926,674.&5 1,969,319.70 8,25073 184,581.53 3,243,297.58 1,356,030.32 (6,286,259.16) 54,430.54 54,467.84 37.30 (1,845,00000) (921,423.54) (6,340,727.00) 185,926.65 (1,232,426.82) (287,292.57) (1,078,937.81) (667,938.42) (493,634.49) Total Net (Expense) Revenue and<:;hanges in Net Assets EXHIBITB The accompanying $ $ 1,115,868.28 1,115,868.28 1,115,868.28 - 1,1 [5,868.28 1,115,868.28 - Restricted Sales Tax Fund $ $ $ $ 2,439,990.23 2,439,990.23 2,439,990.23 2,439,990.23 2,439,990.23 $ $ $ $ are an integral part of this statement. Net assets of governmental activities There are no adjustments Amounts reported for governmental activities in the statement of net assets are different because: Reconcil iation to Statement of Net Assets: 392,644.12 392,644.12 notes to financial statements and Fund Equity Total Liabilities Total Fund Equity Fund Equity: Fund Balance: Restricted Bond Deposits Capital Improvements Debt Service Other purposes Sewer Lateral Assigned Unassigned Total Liabil ities 392,644.12 $ 392,644.12 $ $ $ 392,644.12 $ LIABILITIES AND FUND EQUITY Liabi I ities: $ None Total Assets ASSETS Cash and Investments Restricted Assets: Cash and Investments General Fund 10 7.34 7.34 7.34 - 7.34 7.34 Major Funds TIF-Special TIF - Peerless Park Debt Allocation FundService CUMB) PILOTS $ $ $ $ - TIF (02) Debt Service $ $ $ $ 4,806,811.32 4,806,81132 4,806,81132 4,806,81132 4,806,81132 COP 2010 Project B CITY OF VALLEY PARK, MISSOURI STATEMENT OF ASSETS, LIABILITIES AND FUND BALANCES ARISING FROM CASH TRANSACTIONS GOVERNMENTAL FUNDS JUNE 30, 2011 $ $ $ $ 1,979,838.22 1,979,83822 25,659.69 792,995.32 865,832.88 6,962.94 288,155.59 231.80 [ ,979,838.22 1,979,838.22 Non-Major Funds $ $ $ $ 10,735,15951 10,735,159.51 25,659.69 6,715,674.92 3,305,830.45 6,962.94 288,155.59 231.80 392,644.12 10,735,159.51 10,342,515.39 392,644.12 Total Governmental Funds EXHIBITC Development - Interest The accompanying notes to financial FUND BALANCE. JUNE 30, 2011 statements $ 1,115,868.28 are an integral part of this statement. 392,644.12 [ ,162.580.32 323,063.83 (94,857.54 ) (2,484.98) FUND BALANCE, JULY I, 2010 1,500.00 (96,357.54 ) 48,145.50 1,026,821.48 [ ,026,821.48 68,743.87 1,074,966,98 2,515.02 (5.000.00) 72,065.27 3,015.356.47 100,502.36 22,899.72 12,678.65 634.40 2,454.42 185,342.71 1,131,921.88 739,369.13 750,88l.55 68,671.65 116,682.75 100,208.16 3_,087,421.74 (46,712,04) __ s 254.83 2,235,608.50 7.34 11 7.34 2.02 1,182,957.38 2,439,990.23 5.32 734,314.06 734,314.06 (734,308.74) 734,316.08 734,316.08 7.34 1,257,032.85 (959,917.05) (959,917.05) 2,216,949.90 [8,913.43 18,913.43 2,235,863.33 $ S s s 1.95 2.Q4 (2.04) 834,396.01 (20.35) 834,416.36 (834,398.05) 800,000.00 34,400.00 834,400.00 1.95 s s 203.28 1,159,775.74 15,629.50 4,806,811.32 1,979,838.22 1,716,628.40 263,209.82 U20,086.83 611,114.12 4,806,588.02 4,806,608.04 (347,904.30) 1,045,000,00 152,707.46 1,527,171.68 268,379.14 30,431.68 20,262.63 10,390.77 [,179,267.38 1,354,797.34 ([.863,770.05) 4.806,8[ 1.32 s s 10,735,[59.51 4,385,233.99 6,349,92552 (2,925,064.99) 5,926,674.85 5,929, [72.66 2,927,562.80 420,752.86 1,845,000,00 921,423.54 7, [56,979.14 287,29257 30,431.68 2,454.42 634.40 22,899.72 [2,678.65 749,759.90 750,881.55 68,671.65 1,232,426.82 1,131,921.88 [00,502.36 7,577,7nOO 8,250.73 358,855.56 [84,581.53 294,792.60 6,568,647.60 9,117.55 153,486.43 Fund, Funds 20.02 203.28 - 203.28 s s Governmental Total EXHIBTTD Non-Major 702.14 2,763.14 242,172,81 $ COPZOIO Project B 3,160.00 761,287.16 TIF(02) Debt Service 294,792.60 4,318.05 s Major Funds TIF - Peerless Park Debt Service (UMB) 9,11755 150,326.43 2,4[ 1,976.20 Sales Tax Fund 69,580.29 S $ P[LOTS Restricted General EXPENDITURES AND OTHER FINANCfNG USES EXCESS OF REVENUES AND OTHER FlNANCfNG SOURCES OVER (UNDER) Operating Transfers-Out Certificate Proceeds Total Other Financing Sources (Uses) OTHER FfNANCfNG SOURCES (USES): Operating Transfers-In EXCESS OF REVENUES OVER (UNDER) EXPENDlTIJRES Total Expenditures Debt Service Debt Service - Principal Maintenance Redevelopment Emergency Management Mayor Flood Coun Planning & Zoning Police Community EXPENDmJRES' Administration Street Park, Miscellaneous T otal Revenues Grants Investment Income Fine, and Forfeiture, Licenses and Permits , REVENUES: Taxes Charges for Services TIF - Special Allocation CASH BASIS - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 20 II CITY OF VALLEY PARK, MISSOURJ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - EXHIBIT E CITY OF VALLEY PARK, MISSOURI RECONCILIA TION OF TOT AL GOVERNMENTAL FUND BALANCE TO NET ASSETS OF GOVERNMENTAL ACTIVITIES-CASH BASIS YEAR ENDED JUNE 30, 2011 Net change in fund balances - total govenunental $ funds 6,349,925,52 There are no adjustments Change in Net Assets of Governmental Activities $ ==6==,3:=4=9=,9:=25=:,5::2= The accompanying notes to financial statements are an integral part of this statement. 12 EXHIBITF CITY OF VALLEY PARK, MISSOURI STATEMENT OF NET ASSETS - CASH BASIS PROPRIETARY FUNDS JUNE 30, 2011 Total Enterprise Funds Non Major Funds ASSETS Cash and Investments Total Assets $ 239,208.01 $ 239,208.01 $ 239,208.01 $ 239,208.01 LIABILITIES Liabilities: None $ $ NET ASSETS Unrestricted Total Net Assets 239,208.01 $ 239,208.01 239,208.01 $ The accompanying notes to financial statements are an integral part of this statement. 13 239,208.01 EXHIBIT G CITY OF VALLEY PARK, MISSOURI STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - CASH BASIS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 201 I Total Enterprise Funds Non Major Funds OPERATING REVENUES: Charges for Service ..:...41:..:::3.!.:,3~39:..:. ..:.;49=-- $ 4_1_3,,-,3_3 9....;,.4_9_ 163,795.64 13,210.65 2,456.81 31,249.93 75,396.91 6,781.61 9,110.40 26,084.10 90.50 1,742.32 13,803.51 70.00 10,480.69 4,598.58 163,795.64 13,210.65 2,456.81 31,249.93 75,396.91 6,781.61 9,110.40 26,084.10 90.50 1,742.32 13,803.5 I 70.00 10,480.69 4,598.58 358,871.65 358,871.65 NET INCOME (LOSS) BEFORE TRANSFERS 54,467.84 54,467.84 OPERATING TRANSFERS (2,497.81 ) (2,497.81) NET INCOME (LOSS) AFTER TRANSFERS 51,970.03 51,970.03 187,237.98 187,237.98 $ OPERATING EXPENSES: Salaries and Labor Payroll Taxes Pension Expense Hospital Insurance Dumping Fees Truck Expense General Insurance Truck Equipment Lease Other Expenses Uniform Expense Fuel Supplies Tires and Tubes Billing Expense Total Operating Expenses TOTAL NET ASSETS, JULY 1,2010 TOTAL NET ASSETS, JUNE 30, 2011 $ ======2=39=,2=:0=8.=01= The accompanying notes to financial statements are an integral part of this statement. 14 $ ======2=39=,2=:0=8=.0=1 Reconciliation of Operating Income(Loss) to Net Cash Provided (Used) by Operating Activities Operating Income(Loss) ....;5:....;4-'-,4:...:;6....;7.c;:.84..;.... $ __ $ __ ......;;...54;.:..,4;..;;6..;.;7 .c;:.84..;.. Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities Changes in assets and liabilities: None Net Cash Provided (Used) by Operating Activities The accompanying $ ====54:i,b,4"",6=7 .==84= notes to financial statements are an integral part of this statement. 15 $ ===5",,4=,4::::6::::7,=84= EXHIBIT I CITY OF VALLEY PARK, MISSOURI STATEMENT OF NET ASSETS - CASH BASIS FIDUCIARY FUNDS JUNE 30, 20 II Agency Funds ASSETS Restricted Assets: Cash and Investments $ ==3=2=,3=0=7,=99= LIAB ILITIES Due to Others - Court Bonds $ ==3=2=,3=0=7,=99= The accompanying notes to financial statements are an integral part of this statement. 16 CITY OF VALLEY PARK. MISSOURI NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2011 1. Summary of Significant Accounting Policies The financial statements of the City of Valley Park, Missouri have been prepared on the cash basis of accounting. This cash basis of accounting differs from accounting principles generally accepted in the United States of America (GAAP). Generally accepted accounting principles include all relevant Governmental Accounting Standards Board (GASB) pronouncements. In the governmentwide financial statements and the fund financial statements for the proprietary funds, Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, have been applied, to the extent they are applicable to the cash basis of accounting, unless those pronouncements conflict with or contradict GASB pronouncements, in which case GASB prevails. A Principals Used to Determine Scope of Entity The City's reporting entity includes the City's governing board and all related organizations for which the City exercises oversight responsibility. GASB Statement No. 39, Determining Whether' Certain Organizations are Component Units, which amended GASB No. 14, provides specific criteria which must be met in order for an organization to be included in the City's financial statements. Included within the reporting entity: Tax Increment Financing (TIF) Commission of the City of Valley Park, Missouri (effective October 7, 2009, the City also assumed jurisdiction' over the TIF redevelopment area in the annexation area formally known as the City of Peerless Park, and assumed the duties and responsibilities of the TIF), The Tax Increment Financing Commission was formed to encourage economic development in the City. It is governed by a Board of Commissioners. The Commission oversees certain redevelopment activities. The City has established several special allocation funds into which payments in lieu of taxes derived from increases in the equalized assessed value of property and economic activity revenues are deposited and the funds required by the provisions of the Bond ordinance. The Commission does not issue a separate financial statement. The City has determined that no other outside agency meets the above criteria and, therefore, no other agency has been included as a component unit in the City's financial statements. In addition, the City is not aware of any entity which would exercise such oversight which would result in the City being considered a component unit of the entity. 17 B. Basis of Presentation Government-wide Financial Statements The Statement of Net Assets - Cash Basis and the Statement of Activities - Cash Basis present financial information about the City'S government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The Statement of Activities presents a comparison between direct expenses and program revenue for each functional program. Direct expenses are those that are specifically associated with and are clearly identifiable to a particular function. Program revenues include (a). charges paid by the recipients for goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including taxes, are presented as general revenues. Fund Financial Statements During the year, the City segregates transactions related to certain functions or actrvmes into separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the City at this more detailed level. The focus of the governmental and proprietary fund financial statements is on major funds. Each major fund is presented in a separate column. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets, liabilities, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise find are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. Fund Accounting The City uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. There are three categories of funds; governmental, proprietary, and fiduciary. Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. The following are the City'S governmental funds: 18 Governmental Funds General Fund - The General Fund is the primary operating fund of the City and always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. Special Revenue Funds: Levee Donations Fund - to account for the collection of special monies and expenditures related thereto. Valley Days Fund - to account for the collection of special monies and expenditures related thereto. Sewer Lateral Fund - to account for revenues and expenditures related to the sewer lateral programs. Police Training Fund - to account for revenues and expenditures pertaining to police training. D.A.R.E. Fund - to account for the collection of special monies and expenditures related thereto. Bond Deposit Fund - to account for bond deposits. Senior Citizens Fund - to account for the collection of special monies and expenditures related thereto. Restricted Sales Tax Fund - to account for the collection of storm water and capital improvement sales tax and expenditures related thereto. Redevelopment Fund - to account for the collection of special monies and expenditures related thereto. TIF - Corps of Engineers Escrow Fund - to account for an amount necessary for levee redevelopment required by the Corps of Engineers. TIF - Special Allocation Fund - PILOTS Account - to account for payments in lieu of taxes and amounts necessary to be transferred to TIF - Debt Service Fund. TIF - Special Allocation Fund - Surplus Account - to account for amounts transferred from the PILOTS and Economic Activity Tax Accounts TIF - Special Allocation Fund - Economic Activity Tax Account - to account for economic activity tax revenues and amounts necessary to be transferred to TIF - Debt Service Fund. 19 Community Development Block Grant Fund - to account for the costs associated with 1994 flood recovery costs. Financing provided by a federal grant (through State Department of Economic Development). TIF-Peerless Park (UMB) Revenue Fund - to account for payments in lieu of taxes, economic activity tax revenues and amounts necessary to be transferred to TIF - Peerless Park Debt Service (UMB) Fund. TIF-Peerless Park (Valley Park) Revenue Fund - to account for economic activity tax revenues and amounts necessary to be transferred to TIF - Peerless Park Debt Service (UMB) Fund. Tlli-Special-Economic Act Fund - to account for continuing expenses related to levee profject. Debt Service Funds: TIF (95A) - Debt Service Fund - to account for the accumulation of resources and payment of interest and principal of the Tax IncrementRevenue Bonds (9SA). TIF (95A) - Reserve Fund - to account for an amount from proceeds of the Tax Increment Revenue Bonds (9SA) applied in accordance with the provisions of the Bond Ordinance to prevent any default in the payment of principal and interest on the Tax Increment Revenue Bonds (9SA). TIF (95B) - Debt Service Fund - to account for the accumulation of resources and payment of interest and principal of the Tax Increment Revenue Bonds (9SB). TIF (95B) - Reserve Fund - to account for an amount from proceeds of the Tax Increment Revenue Bonds (9SB) applied in accordance with the provisions of the Bond Ordinance to prevent any default in the payment of principal and interest on the Tax Increment Revenue Bonds (9SB). TIF (98)-Debt Service Fund - to account for the accumulation of resources and payment of interest and principal of the Tax Increment Revenue Bonds (98). TIF (98)-Reserve Fund - to account for an amount from proceeds of the Tax Increment Revenue Bonds (98) applied in accordance with the provisions of the Bond Ordinance to prevent any default in the payment of principal and interest on the Tax Increment Revenue Bonds (98). TIF (02) - Debt Service Fund - to account for the accumulation of resources and payment of interest and principal of the Tax Increment Revenue Bonds (02). TIF (02) - Reserve Fund - to account for an amount from proceeds of the Tax Increment Revenue Bonds (02) applied in accordance with the provisions of the Bond Ordinance to 20 prevent any default in the payment of principal and interest on the Tax Increment Revenue Bonds (02). TIF (03) ~ Debt Service Fund - to account for the accumulation of resources and payment of interest and principal of the Tax Increment Revenue Bonds (03). TIF (03) - Reserve Fund - to account for an amount from proceeds of the Tax Increment Revenue Bonds (03) applied in accordance with the provisions of the Bond Ordinance to prevent any default in the payment of principal and interest on the Tax Increment Revenue Bonds (03). TIF-Peerless Park Debt Service (VMB) Fund - to account for accumulation of resources and payment of interest and principal of the Tax Increment Revenue Notes. COP 2010 Debt Service - to account for the accumulation of resources and payment of interest and principal of the Certificate of Participation (Series 2010). COP 2010 Reserve A - to account for an amount from proceeds of the Certificate of Participation (2010A) applied in accordance with the provisions of the lease purchase agreement. COP 2010 Reserve B - to account for an amount from proceeds of the Certificate of Participation (201 OB) applied in accordance with the provisions of the lease purchase agreement. Capital Projects Funds: COP 2010 Project A - to account for costs of acquiring, constructing, and installing certain stonnwater and road improvements. Financing provided by Certificates of Participation. COP 2010 Project B - to account for costs of acquiring, constructing, and installing certain storm water and road improvements. Financing provided by Certificates of Participation. Proprietary funds are used to account for activities similar to those found in the private sector, where the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The following are the City's proprietary funds: Proprietary Funds Enterprise Funds: Water Fund - to account for the revenues and expenses arising from the charges to patrons of the water system. On May 21, 2001, the City sold its water distribution system for $385,000.00. 21 Sanitation Fund - to account for the charges to residents for trash pick-up and expenses pertaining to that service. Fiduciary Fund Agency Fund: Municipal Court - represents monies that are held by the City's municipal court in a fiduciary capacity on behalf of various individuals and entities. This fund is not considered an operating fund of the City. Maior and Non-major Funds The funds are classified as major or non-major as follows: Major Funds: Debt Service Funds: TIF- Peerless Park Debt Service TIF (02) Debt Service General Fund Special Revenue Funds: Restricted Sales Tax TIF-Special Allocation (PILOTS) Capital Projects Fund: COP 2010 Project B Non-Major Funds: Special Revenue Funds: Levee Donations Valley Days Sewer Lateral Fund Police Training D.A.R.E. Bond Deposit Senior Citizens Redevelopment TIF-Peerless Park (UMB) Revenue TIF-Peerless Park (Valley Park) Revenue TIF-Corps of Engineers Escrow TIF -Special Allocation Surplus TIF -Special Allocation-Economic Activity Tax Account TIF-Special Allocation-Economic Act Community Development Block Grant Capital Projects Funds: COP 2010 - Project A 22 Debt Service Funds: TIF (95A) - Debt Service TIF (95A) - Reserve TIF (95B) - Debt Service TIF (95B) - Reserve TIF (98) - Debt Service TIF (98) - Reserve TIF (02) - Reserve TIF (03) - Debt Service TIF (03) - Reserve COP 2010 - Debt Service COP 2010- Reserve A COP 2010 - Reserve B Enterprise Funds: Water Sanitation C. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe "how" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus In the government-wide Statement of Net Assets and the Statement of Activities, both governmental and business-like activities are presented using the "economic resources" measurement focus, within the limitations of the cash basis of accounting, as defined below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus, as applied to the cash basis of accounting, is used as appropriate: a. All government funds utilize a ."current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. The proprietary funds utilize an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent, financial, or nonfinancial) associated with their activities are reported. Proprietary fund equity is classified as net assets. When both restricted and unrestricted resources are available for use, it is the City'S policy to use restricted resources first, and the unrestricted resources as they are needed. Basis of Accounting The government-wide financial statements and the fund financial statements, governmental and business-like activities, are presented using a cash basis of accounting. This basis recognizes assets, liabilities, net assets/fund equity, revenues, and expenditures/expenses when they result from cash transactions. This basis is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. As a result of the use of this cash basis of accounting, certain assets and their related revenues (such as accounts receivable and revenue for billed or provided services not yet collected) and certain liabilities and their related expenses (such as accounts payable and expenses for goods and services received but not yet paid, and accrued expenses and liabilities) are not recorded in these financial statements. 23 D. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The Mayor submits to the Board of Aldermen a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Budgeted expenditures cannot exceed beginning available monies plus estimated revenues for the year. 2. Prior to its approval by the Board of Aldermen, the budget document is available for public inspection. 3. The budget was formally adopted on June 21, 2010. 4. Budgets for City funds are prepared and adopted on the cash basis (budget basis), recognizing revenues when collected and expenditures when paid. 5. Budgeted amounts are as originally adopted or as amended by the Board of Aldermen. For the year ended June 30, 2011, the City compiled, in all material respects, with applicable budget laws, except as noted below: 1. Excesses of expenditures and transfers over appropriations m individual funds. The following is a summary: Fund Valley Days Fund Restricted Sales Tax Redevelopment Fund TIF~Peerless Park (UMB) Revenue TIF~Peerless Park (Valley Park) Rev. TIf-Special Allocation Surplus TIF -Spee ial- Economic Act TIF-Peerless Park - Debt Service COP 2010 Debt Service COP 2010 - Reserve A COP 2010 - Reserve B TIF (02) - Debt Service COP 2010 - Project A Appropriations $ 641,316.00 Exenditures/ Transfers $ 19,830.45 Expenditures/ Transfets over Appropriations $ (19,830.45) 1,123,179.02 567.25 735,829.32 (481,863.02) (567.25) (735,829.32) 74,800.14 0.21 (74,800.14) (0.21 ) 33,131.38 3.08 20.02 834,420.35 (33,131.38) (734,316.08) (96,357.46) (3.08) (20.02) (20.35) 92,165.00 (92,165.00) 734,316.08 96,357.46 834,400.00 After the original budget was approved, several funds and accounts were established, including: 2010 Certificates of Participation project, reserve, and debt service related accounts and TIFPeerless Park related accounts. 24 2. Excess offinal budget appropriations over beginning fund balance plus anticipated revenues. The following is a summary: Beginning Fund Balance plus Budgeted Excess Appropriations Revenues Fund $ 79,502.40 $ (7.60) TIF (95) Debt Service Reserve $ 79,510.00 (15.80) TIF (95B) Debt Service Reserve 40,501.20 40,517.00 (45.10) 282,009.90 TIF (98) Debt Service Reserve 282,055.00 (36.00) 179,006.00 TIF (03) Debt Service Reserve 179,042.00 Beginning fund balances were estimated on the original budget. E. Pooled Cash and Temporary Investments Cash resources of the individual funds are combined to form a pool of cash and temporary investments which is managed by the City Clerk. Investments of the pooled accounts consist of certificates of deposit. Interest income earned is allocated to contributing funds based on cash and temporary investment balances. For the purpose of the Statement of Net Assets-Cash Basis, "cash and investments" includes all demand, savings accounts, and certificates of deposits of the City. For the purpose of the proprietary fund Statement of Cash Flows-Cash Basis, "cash" includes all demand and savings accounts. F. Capital Assets Capital outlays of the various funds are recorded as expenditures when incurred. These capital outlays represent the cost of land, buildings and improvements, and furniture and equipment. The City does not maintain a record of its capital assets. G. Restricted Assets Assets are reported as restricted when limitations on their use change the normal understanding of the availability of the asset. Such constraints are either imposed by creditors, contributors, grantors, or laws of other governments or imposed by enabling legislation. 25 The restricted assets at June 30, 2011, are as follows: Restricted Sales Tax Fund TIF-Special Allocation Fund-PILOTS Account TIF-Peerless Park Debt Service (UMB) Fund COP 2010 - Project B Valley Days Fund Sewer Lateral Fund Police Training Fund Bond Deposit Fund Senior Citizen Fund Redevelopment Fund TIF-Corps of Engineer Escrow Fund TIF - Special Allocation- (ECON) TIF-Special Allocation Fund-Economic Activity Tax Account TIF-Peerless Park (UMB) Revenue Fund COP 2010 - Reserve A COP 2010 - Reserve B COP 20 I 0 - Debt Service Fund COP 2010 - Project A Fund $ 1,115,868.28 2,439,990.23 7.34 4,806,811.32 799.05 288,155.59 5,691.49 25,659.69 1,271.45 (567.25) 298,993.23 100,544.60 49,462.22 181,881.12 66,000.00 467,944.38 0.56 494,002.09 $ 10,342,515.39 H. Governmental Fund Balances For the year ended June 30, 20 11, the City adopted GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The objective of this Statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. This Statement established fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The requirements for this statement are effective for periods beginning after June 15, 2010. In the governmental fund financial statements the following classifications are used to define the governmental fund balances: Nonspendable - amounts that are not in spendable form or legally or contractually required to be maintained intact. Restricted - amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. 26 Committed - amounts that can only be used for specific purposes pursuant to constraints imposed by formal action (resolution) of the Board of Aldermen, the City's highest level of decision-making authority. Assigned - amounts that are intended to be used for specific purposes by the Board of Aldermen. Unassigned - all other spendable amounts. H. Net Assets Net assets represent the difference between assets and liabilities. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. Restricted for Bond Deposits: The City has restricted $25,659.69 for purposes of construction bonds. Restricted for Capital Improvements: The City has restricted $6,715,674.92 for purposes of levee redevelopment and certain stormwater and road improvement projects. Restricted (or Debt Service: The City has restricted $3,305,830.45 for purposes of Certificates of Participation and Tax Increment Notes, as discussed in Notes 4 and 6. Restricted tor Other Purposes: The City has restricted $7,194.74 for other purposes. Restricted fOr Sewer Lateral: The City has restricted $288,155.59 for purposes of sewer lateral expenditures. I. Interfund Activity Legally authorized transfers are treated as interfund transfers and are included in the results of operations of both governmental and proprietary funds. Short-term amounts owed between funds are classified as 'Due To/From Other Funds'. Interfund receivables and payables between funds within government activities are eliminated in the Statement of Net Assets. See Note 5 for details of interfund transactions, including receivables and payables at year-end. 27 J. Estimates The preparation of the financial statements in conformity with the cash basis of accounting requires management to make estimates and assumptions that affect the amounts reported in the final statements and accompanying notes. Actual results may differ from those estimates. 2. Cash and Investments The City is governed by the deposit and investment limitations of City Policy and state law. The depository banks are to pledge securities in addition to Federal Deposit Insurance Corporation (FDIC) insurance at least equal to the amount on deposit at all times in accordance with sections 110.010 and 110.020 of the Missouri Revised Statutes. The City may invest the funds in bonds or any instrument permitted by law for the investment of state money's in accordance with section 165.051 of the Missouri Revised Statutes. The deposits and investments held at June 30, 2011, and reported at cost are as follows: Type Maturities Carrying Value Deposits: Demand deposits Demand $ 2,388,566.65 Investments: Mutual Fund Demand 8,585,800.87 Total Deposits and Investments $ 10.974367.52 Reconciliation to financial statements: Current: Total Deposits and Investments Petty Cash $ 10,973,417.52 950.00 $ 10,974367.52 Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City has a deposit policy for custodial credit risk. Custodial Credit Risk - Investments - Custodial credit risk is the risk that in the event of the failure of the counterparty to a transaction, the City will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The City has a written investment policy covering custodial credit risk. 28 Investment Rate Risk - Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Investments held for longer periods are subject to increased risk of adverse interest rate changes. The City has a written investment policy covering interest rate risk. Investment Credit Risk - Investment credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City has a written investment policy covering investment credit risk. At June 30, 2011, the City's investments were rated as follows: Description Fidelity Treasury Fund Financial Institution UMB Bank Amount 8,585,800,87 Rating AAA 3. Taxes Property taxes attach as an enforceable lien on property as of January 1, Taxes are levied on November 1 and payable by December 31. The assessed valuation of the tangible taxable property for the calendar year 2010 for purposes of local taxation was: St. Louis County Real Estate Personal Property Railroad and Utilities Total $ $ II 7,292,120 15,006,950 3,491,159 135.790.229 The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 2009 for purposes of local taxation was: General Revenue Residential Agricultural Commercial Personal Property $ 0.47 0.657 0.57 4. Long-Term Debt The City's long-term debt arising from cash transactions is segmented between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. Governmental Activities As of June 30, 2011, the long-term debt outstanding, arising from cash transactions, to be repaid from governmental funds consisted of the following: 29 Certificates of Participations: $660,000.00 tax exempt certificates due in varying installments through April 1, 2014; interest at 2%: $ $5,395,000.00 taxable certificates, due in varying installments through April 1, 2025; interest at 4.25%-7%: 660,000.00 5,395,000.00 Total Certificates of Participation: $ 6.055,000.00 Tax Increment Revenue Notes: $4,520,100.00 tax increment revenue notes, due in varying annual installments from available funds through January 2, 2020; interest at 10%: $ 4,520,100.00 $2,679,900.00 tax increment revenue notes, due in varying annual installments from available funds through January 2, 2020; interest at prime +I%, currently at 4.25%: 2,679,900.00 $ 7200,000.00 Total Tax Increment Revenue Bonds: Capital Lease Obligations: 2009 capital lease with Meramec Valley Bank for a vehicle (cost $119,245.42), payable in installments of$26,084.1O, including principal and interest at 4.25%, final payment due March 14,2013. $ 49,033.54 2009 capital lease with Meramec Valley Bank for a vehicle (cost $89,787.55), payable in installments of$20,685.29, including principal and interest at 5.25%, final payment due August 5, 2014. 72,744.53 2009 capital lease with Meramec Valley Bank for a vehicle (cost $49,000.00), payable in installments of$24,500.00 and $8,880.69, including principal and interest at 4.25%, final payment due November 27, 2012. 16,660.56 30 2009 capital lease with Meramec Valley Bank for a vehicle (cost $19,501.00), payable in installments of $6,776.42, including principal and interest at 4.25%, final payment due September 17, 2011. 6,488.95 2009 capital lease with Meramec Valley Bank for a vehicle (cost $19,304.00), payable in installments of 6,707.96, including principal and interest at 4.25%, final payment due September 17, 2011. 6,423.41 $ Total Capital Lease Obligations: 151.350.99 Changes in Long-Term Debt The following is a summary of changes in long-term debt for the year ended June 30, 2011. Type of Debt Governmental Activities: Certificates of Participation TIF Revenue Bonds TIF Revenue Notes* Capital Leases Total Balance July 1,2010 $ 1,845,000.00 7,200,000.00 270,109.23 $9,315,109.23 Additions $ 6,055,000.00 Reductions $ Balance June 30, 2011 Amount Due Within One Year $ 6,055,000.00 $ 592,051.00 7,200,000.00 151,350.99 $13,406,350.99 61,910.28 $ 653,961.28 1,845,000.00 $ 6,055,000.00 118,758.24 $1,963,758.24 *Debt acquired through the assumption of the Tax Increment Financing Commission of the City of Peerless Park, Missouri. Arumal Debt Service Requirements The annual debt service requirements to maturity, including principal and interest, for long-term debt as of June 30, 2011, are as follows: Year Ended June, 30 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 Total Governmental Activities Certificates of Participation Tax Increment Revenue Notes ** Principal Interest Principal Interest $ $ 215,000.00 377,051,25 $ 11,064,794,24 $ 372,751.25 1,319,701.46 220,000.00 368,351.25 1,319,701.46 225,000,00 362,726.25 1,319,701.46 230,000.00 352,951.25 1,319,701.46 235,000.00 1,305,000.00 1,569,798,75 7,200,000.00 4,618,955.11 1,123,407,50 1,605,000.00 2,020,000.00 476,943.75 $ 6,055,000,00 $ 5,003,981.25 $ 20,962,555.19 $ 7,200,000.00 31 Governmental Activities Year Ended Capital Leases June, 30 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 Total ** Includes unpaid Principal 61,910.28 51,314.06 18,683.64 19,443.01 $ $ 151,350.99 Interest 7,224.18 4,413.03 2,001.65 1,242.28 $ $ 14,881.14 Total Governmental Activities Principal Interest $ 276,910.28 11,449,069.67 271,314.06 1,696,865.74 243,683.64 1,690,054.36 249,443.0 I 1,683,669.99 235,000.00 1,672,652.71 8,505,000.00 6,188,753.86 1,605,000.00 1,123,407.50 2,020,000.00 476,943.75 $ 13,406,350.99 $ 25,981,417.58 s interest accrued and added to interest through March I, 2011. 5. Iuterluud Activity Transfers between funds for the year ended for the year ended June 30, 2011, were as follows: Major Funds: General Fund Special Revenue Funds: Restricted Sales Tax TIF-Special Allocation (PILOTS) Debt Service Funds: TIF- Peerless Park Debt Service TIF (02) Debt Service Capital Projects Fund: COP 2010 Project B Transfers In $ 2,515.02 Transfers Out $ 5,000.00 1,500.00 96,357.54 959,917.05 734,314.06 834,416.36 20.35 20.02 Non-Major Funds: Special Revenue Funds: Levee Donations Valley Days TIF-Peerless Park (UMB) Revenue TIF-Peerless Park (Valley Park) Revenue TIF-Special Allocation Surplus TIF-Special Allocation-Economic Activity Tax TIF-Special Allocation-Economic Act Community Development Block Grant Debt Service Funds: TIF (9SA) - Debt Service TIF (95A) - Reserve TIF (95B) - Debt Service TIF (95B) - Reserve TIF (98) - Debt Service TIF (98) - Reserve 32 1,500.00 5,000.00 74,800.14 82,593.60 0.48 7.30 210,601.33 666,763.36 734,314.06 74,800.14 0.21 120,446.91 17.21 3,536.89 79,008.96 2.44 40,003.94 16.22 281,531.52 TIF (02) - Reserve TIF (03) - Debt Service TIF (03) - Reserve COP 2010 - Debt Service COP 2010 - Reserve A COP 2010- Reserve B Capital Projects Funds: COP 201 0 - Project A Enterprise Funds: Water 218,670.51 350,039.40 9.35 178,519.70 96,357.54 3.08 20.02 3.08 $ 2,927562.80 2,497.81 $ 2,927,562.80 Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to (b) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 6. Redevelopment Plan and Project In December 1988, the City approved an ordinance designating a redevelopment project area, known as the Valley Park Levee and Infrastructure Development Plan and Project, and authorizing tax increment financing (TIF). In the fall of 2006, the United States Army Corps of Engineers, with the City as local sponsor, completed a 100 year levee system to protect the City from floodwaters of the Meramec River and tributaries. The total flood control cost was $52,187,000, which includes the City's share of $13,047,000. In March 2011, the City made final payments on its TIF revenue bonds related to this project. Effective October 7, 2009, the City assumed jurisdiction over the TIF redevelopment area in the annexation formally know as the City of Peerless Park and assumed the duties and responsibilities of the TIF. In January 1997, an agreement was signed between the City of Peerless Park and a developer for undertaking a redevelop plan and project known as the Druco, Inc. Project. In December 1997, the City of Peerless Park issued TIF notes not to exceed $7,200,000.00. The Notes constitute special, limited obligations of the City payable as to principal, premium, if any, and interest solely from "Pledged Revenues" means (l) all Net Proceeds and (2) all moneys held in the Revenue Fund under the Indenture and all moneys held in the Debt Service Fund under the Indenture together with investment earnings thereon. "Net Proceeds" means all moneys on deposit in (a) the Pilots Account of the Special Allocation Fund and (b) subject to annual appropriation, the Economic Activity Tax Account of the Special Allocation Fund, excluding (i) any amount paid under protest until the protest is withdrawn or resolved against the taxpayer or (ii) any sum received by the City which is the subject of a suit or other claim communicated to the City which suit or claim challenges the collection of such sum. The Obligations of the City with respect to this note terminate on January 2, 2020, whether or not the principal amount or interest hereon has been paid in full. 33 7. Retirement Plan A. Plan Description The City of Valley Park 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 state statute, Section RSMo. 70.600 - 70.755. As such. it is the system's responsibility to administer the law in accordance with the expressed intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401 (a) and it is tax exempt. The Missouri Local Government Employees Retirement 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 1-800447-4334. B. Funding Status Full-time emlloyees of the City of Valley Park contribute 4% of their gross pay to the pension plan. The June 30 statutorily required contribution rate is 1.5% (General) of annual covered payroll. The contribution requirements of plan members are determined by the governing body of the political subdivision. The contribution provisions of the political subdivision are established by state statute. C. Annual Pension Cost The subdivision's annual pension cost and net pension obligation for the current year were as follows: Annual required contribution Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Actual contributions Increase (decrease) in NPO NPO, beginning of year NPO, end of year $ 12,949 12,949 12,949 $ The annual required contribution (ARC) was determined as part of the February 29, 2009 annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of February 28, 2011 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 34 from 0.0% to 6.0% per year depending on age and division, attributable to seniority/merit, (d) preretirement mortality based on 75% of the RP-2000 Combined Healthy Table set back 0 years for men and 0 for women and (e) post-retirement mortality 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 is being amortized as a level percentage of projected payroll on an open basis. The amortization period as of February 28, 2009 was 5 years for the General division. Three- Year Trend Information Fiscal Year Ending 2009 2010 2011 Actuarial Valuation Date 02/28/09 02/28/10 02128/11 Annual Pension Cost (APC) 3,996 4,068 12,949 Percentage ofAPC Contributed 100% 100% 100% Net Pension Obligation REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress (b) (b-a) Unfunded (c) Entry Age (a) Annual Actuarial Actuarial (alb) Accrued Covered Liability Funded Accrued Value Liability (UAL) Ratio Of Assets Payroll $ 779,342 $ (98,493) 109% $ 1,155,741 $ 1,057,248 (145,383) 113 808,025 1,285,370 1,139,987 1,453,978 841,864 1,383,126 (70,852) 105 o o o [(b-a)/c] UALasa Percentage of Covered Payroll Note: The above assets and actuarial accrued liability do not include the assets and present value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The actuarial assumptions were changed in conjunction with the February 28, 2006 annual actuarial valuations. For a complete description of the actuarial assumptions used in the annual valuations, please contact the LAGERS office in Jefferson City. 8. Commitments and Contingencies Commitments The City contracts for police services with St. Louis County. The contract terminates in June 2012, with required monthly payments of $96,225.00. 35 Contingencies The City is defendant in various litigation. The aggregate liability, after insurance coverage, is not determinable at this time. No provision has been made in the accompanying statements for settlement costs, if any. The City receives various federal or state grantlloan programs for specific purposes that are subject to review and audit. These reviews and audits could lead to requests for reimbursement or to withholding of future funding for expenditures disallowed under or other noncompliance with the terms of the grants and funding. The City is not aware of any noncompliance with federal or state provisions that might require the City to provide reimbursement. The City has not complied with its continuing disclosure obligation in connection with the issuance of various tax increment financing revenue bonds. 9. Liability Insurance The City is a member of the Missouri Rural Services Workers' Compensation Insurance Trust, a protected self-insurance program of member participants. The City does not pay premiums to purchase insurance policies, but pays an assessment to be a member of self-sustaining risk sharing group. Part of the assessment is used to purchase excess insurance for the group as a whole. The pooling agreement requires the pool to be self-sustaining. The City believes it is not possible to estimate the range or contingent losses to be borne by the City. 10. Conduit Debt Obligations The City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2011, there were several series of Industrial Revenue Bonds outstanding. aggregate principal amount outstanding at June 30,2011 could not be determined. The 11. Subsequent Events In December 2011 the City transferred $2,182,500.00 to the TIF-Corps of Engineers Escrow Fund for authorized project costs, $297,983.36 to a City designated fund for payment of obligated levee capital project costs and $167,527.43 to St. Louis County for statutorily distribution of surplus funds. 36 REQUIRED SUPPLEMENTARY INFORMATION STATEMENT CITY OF VALLEY STA TEMENT OF REVENUES, 1 PARK, MISSOURI EXPENDITURES CASH BASIS - WITH COMPARISON AND CHANGES IN FUND BALANCE TO BUDGET - GENERAL - FUND YEAR ENDED JUNE 30,2011 Variance Budgeted Amounts Orignal Final Actual Favorable Amounts (Unfavorable) REVENUES; Taxes Real Estate and Personal Property Tax Railroad & Utility Tax $ 592,000.00 $ 592,000.00 $ 557,156.53 $ (34,843.47) (7,664.41) 27,000.00 27,000.00 19,335.59 County Road Fund 110,000.00 110,000.00 114,284.65 4,284.65 Gross Receipts Tax 720,000.00 720,000.00 45,566.10 (4,708.45) Cigarette Tax 23,000.00 23,000.00 765,566.10 18,291.55 Gasoline Tax 260,000.00 260,000.00 250,282.17 725,000.00 2,457,000.00 725,000.00 687,059.61 (9,717.83) (37,940.39) 2,457,000.00 2,411,976.20 (45,023.80) CDBG 40,000.00 40,000.00 30,000.00 (10,000.00) State Grant 67,000.00 67,000.00 86,682.75 19,682.75 107,000.00 107,000.00 116,682.75 9,682.75 190,000.00 190,000.00 180,405.97 (9,594.03) 2,000.00 2,000.00 1,140.00 12,000.00 12,000.00 3,140.00 11,431.68 Liq uor Licenses 12,000.00 12,000.00 13,575.00 1,575.00 Auto Licenses 30,000.00 30,000.00 30,496.95 300.00 300.00 200.00 496.95 (100.00) 50,000.00 50,000.00 56.00 55,487.00 56.00 5,487.00 296,300.00 296,300.00 294,792.60 (1,507.40) 3,500.00 3,500.00 4,318.05 818.05 1,300.00 1,300.00 150,000.00 160,000.00 1,579,00 136,895.43 (23,104.57) 11,852.00 150,326.43 (21,973.57) Sales Tax Grants Licenses, Permits and Fees Merchants, Manufacturing and Business Licenses Coin Operated Machine Licenses Billboard License Filing Fees Bad Check Fee Permits Interest (568.32) Fines and Forfeitures Battered Women (Court) Police, Court and Fines Crime Victim Compensation 11,000.00 11,000.00 162,300.00 172,300.00 279.00 852.00 Miscellaneous Weed Cutting Photo Copies 1,000.00 100.00 Insurance From Individuals Library Utility Reimbursement 1,000.00 1,000.00 100.00 1,000.00 150.00 32.55 848.40 (850.00) (67,45) ( 151.60) 500.00 500.00 Park Rental Deposit 500.00 3,000.00 3,000.00 8,710.00 5,710.00 Deposits on Specs and Plans 6,000.00 6,000.00 3,500.00 (2,500.00) Refunds Community 1,500.00 1,500.00 4,238.94 2,738.94 100.00 100.00 300.00 300.00 In Lieu of Taxes 4,000.00 4,000.00 4,162.00 Deposit-Public 3,000.00 3,000.00 3,000.00 500,00 11,400.00 500.00 11,400.00 Development Citizen Reimbursement Fees on City Expense Hearing Ad Donations Alarm Cell Tower Rent Insurance Refund Other Total Revenues 150.00 162.00 1,500.00 1,500.00 225.00 (275.00) (5,350.00) 2,405.50 2,400.00 2,400.00 30,000.00 30,000.00 6,050.00 4,805.50 71,453.32 64,800.00 64,800.00 109,325.71 3,090,900.00 3,100,900.00 37 50.00 (300.00) 3,087,421.74 41,453.32 44,525.71 (13,478.26) STATEMENT 1 (CONTINUED) CITY OF VALLEY STATEMENT OF REVENUES, PARK, MISSOURI EXPENDITURES CASH BASIS - WITH COMPARISON AND CHANGES TO BUDGET IN FUND BALANCE- - GENERAL FUND YEAR ENDED JUNE 30, 20 II Variance Budgeted Amounts Orignal Favorable Final (Unfavorable) Actual EXPENDITURES: Administration Department $ Salaries Payroll Taxes 128,464.00 $ 128,464.00 Pension Expense 15,500.00 2,400.00 15,500.00 2,400.00 Street Lights 60,000.00 60,000.00 Code Book Equipment Expense Office Supplies and Expense $ 131,938.48 (3,474.48) 1,607.94 1,425.77 63,442.27 (3,442.27) 2,500.00 2,500.00 360.00 65,000.00 65,000.00 18,000.00 18,000.00 51,590.81 16,779.43 3,973.76 Trash Pick Up $ 13,892.06 974.23 2,140.00 13,409.19 1,220.57 (3,973.76) Insurance 35,317.00 35,317.00 33,590.23 1,726.77 General Insurance 95,000.00 95,000.00 88,368.00 6,632.00 Accounting Hospital 36,000.00 36,000.00 39,097.50 (3,097.50) Supplies 1,000.00 1,000.00 919.08 Advertising 3,500.00 3,500.00 370.60 5,831.49 80.92 3,129.40 Fees Gas Electric Telephone Legal Fees 8,500.00 8,500.00 12,500.00 12,500.00 5,000.00 5,000.00 13,912.37 4,466.03 120,000.00 120,000.00 127,971.62 7,000.00 7,000.00 7,135.42 50,000.00 50,000.00 Battered Women 1,300.00 Official Expense 38,400.00 1,300.00 38,400.00 44,045.15 1.533.00 Other Expense 15,000.00 15,000.00 24,907.65 Floral Account 500.00 500.00 6,400.00 660.67 Dues and Meeting Expense Building Maintenance Sewer and Water Drug Testing 6,400.00 2,500.00 Newsletter 8,500.00 Safety Incentive 2,500.00 8,500.00 2,668.51 (1,412.37) 533.97 (7,971.62) (135.42) 5,954.85 (233.00) 38,400.00 (9,907.65) (160.67) 3,214.01 1,417.00 3,185.99 5,570.93 2,929.07 650.00 4,350.00 11,705.80 (II,705.S0) 1,083.00 600.00 600.00 600.00 5,000.00 5,000.00 5,000.00 5,000.00 WTI Expenses 5,000.00 5,000.00 5,000.00 Consulting 1,000.00 1,000.00 1,000.00 1,000.00 755,881.00 1,000.00 755,881.00 739,369.13 1,000.00 16,511.87 399,704.00 399,704.00 401,383.46 (1,679.46) 34,575.00 34,575.00 33,227.78 1,347.22 5,999.00 6,006.21 Hospital Insurance 5,999.00 107,447.00 107,447.00 96,594.88 10,852.12 General Insurance 22,000.00 22,000.00 23,914.80 2,000.00 2,000.00 1,156.51 ( 1,914.80) 843.49 4,500.00 41,161.00 4,500.00 41,161.00 1,630.00 2,870.00 29,602.01 [ 1,558.99 Refund Bldg & Occ. Permits Annexation Recreational Facility Reimbursement Fees Uniforms 2,200.00 2,SOO.00 Street Department Salaries Payroll Taxes Pension Expense Office Supplies & Expense Tree Removal Equipment Purchases Ice Truck Expense (7.21 ) 400.00 400.00 213.00 30,000.00 30,000.00 17,165.71 187.00 12,834.29 2,282.46 Uniforms 9,500.00 9,500.00 7,217.54 0& M Garage 3,000.00 3,000.00 2,926.00 74.00 Chemicals 2,500.00 2,500.00 1,301.87 1,198.13 38 STATEMENT I (CONTINUED) CITY OF VALLEY STATEMENT OF REVENUES, PARK, MISSOURI EXPENDITURES AND CHANGES CASH BASIS - WITH COMPARISON IN FUND BALANCE- TO BUDGET - GENERAL FUND YEAR ENDED JUNE 30, 2011 Variance Favorable Budgeted Amounts Orignal EXPENDITURES: (Unfavorable) Actual Final (Continued) Street Department (continued) $ Tractor Expense 12,500.00 $ 12,500.00 $ 13,401.57 (901.57) Other 750.00 750.00 1,994.11 Signs 4,000.00 4,000.00 2,076.24 1,923.76 1,000.00 1,000.00 150.00 Equipment 12,500.00 Spraying Rental 35,000.00 Fuel First Aid & Safety Equipment Street Materials 12,500.00 35,QOO.00 4,713.50 $ 7,786.50 (1,244.11) Mosquito 850.00 26,056.78 8,943.22 2,975.26 10,014.70 5,000.00 5,000.00 2,024.74 70,000.00 70,000.00 59,985.30 2,[63.09 Tires and Tubes 5,000.00 5,000.00 Lubes and Fluids 4,000.00 4,000.00 2,836.91 2,416.11 WeedeaterlSupplies 2,000.00 2,000.00 1,164.76 Telephone 5,500.00 5,500.00 5,239.64 835.24 260.36 Tools 3,000.00 3,000.00 1,609.13 1,390.87 Advertisement 500.00 [ ,500.00 500.00 [,500.00 197.86 302.14 2,730.00 (1,230.00) Dues & Meeting Expense 1,200.00 1,200.00 892.14 Vegetation 1,500.00 1,500.00 WTI Expenses Control Services Safety Incentive Computer Equipment Purch Education [ ,583.89 307.86 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 [,052.99 447.01 500.00 831,236.00 500.00 83[,236.00 750,881.55 500.00 80,354.45 Parks 15,000.00 15,000.00 14,289.31 710.69 Payroll Taxes 1,298.00 1,250.79 General Insurance 5,000.00 1,298.00 5,000.00 3,304.80 47.21 1,695.20 640.56 2,000.00 1,359.44 748.38 3,251.62 Salaries Beauti fication - Flowers 2,000.00 2,000.00 Vance Trails 2,000.00 2,000.00 Caboose Relocation 4,000.00 4,000.00 300.00 Park Deposit Park Improvements Park Materials/Supplies Events Office Supplies 5,000.00 4,500.00 500.00 10,000.00 5,000.00 7,315.15 (2,315.15) 1,500.00 1,500.00 1,578.55 500.00 500.00 408.05 (78.55) 91.95 2,000.00 Park Equipment 2,000.00 2,000.00 Sportplex Lights 4,260.00 4,260.00 Sportplex Electric Telephone Heat 0& MGeneral WTI Expenses Other Water Hay Ride (300.00) 5,000.00 500.00 500.00 1,625.00 1,625.00 1,000.00 1,000.00 3,773.69 486.31 2,945.75 (2,945.75) 606.16 1,269.99 1,121.07 (106.16) 355.01 (121.07) 500.00 500.00 500.00 1,000.00 1,000.00 7,704.14 (6,704.14) (289.62) 1,662.32 700.00 700.00 989.62 2,000.00 2,000.00 337.68 Winter Festival 1,000.00 1,000.00 401.07 598.93 Fishing Derby 1,000.00 1,000.00 32.27 967.73 Education Metro SI. Louis Sewer District 1,000.00 1,000.00 1,000.00 1,000.00 761.75 238.25 Leonard Park Repairs 5,000.00 5,000.00 5,000.00 5,000.00 1,806.00 3,194.00 68,883.00 10,586.87 68,671.65 (5,586.87) 73,883.00 Bringnole Park Repairs 39 1,000.00 2lU5 STATEMENT I (CONTINUED) CITY OF VALLEY STATEMENT OF REVENUES, PARK, MISSOURI EXPENDITURES AND CHANGES CASH BASIS - WITH COMPARISON TO BUDGET IN FUND BALANCE - GENERAL - FUND YEAR ENDED JUNE 30, 2011 Variance Budgeted Orignal EXPENDITURES: Community Favorable Amounts (Unfavorable) Actual Final (Continued) Development $ Salaries 51,410.00 $ 51,410.00 $ 51,410.32 $ (0.32) (2,336.40) 18,304.00 6,031.00 20,640.40 6,000.00 31.00 (34.85) 2,500.00 1,046.00 2,500.00 1,080.85 22,000.00 22,000.00 Office Supplies and Expense 7,500.00 Telephone 2,700.00 Advertising Maps and Abstracts 18,304.00 6,031.00 . Labor and Overtime Payroll Taxes Pension Expense 1,046.00 2,847.00 (347.00) (45,942.56) 7,500.00 67,942.56 3,189.40 2,700.00 2,871.85 4,310.60 (171.85) 500.00 500.00 3,816.88 (3,316.88) 500.00 500.00 1,500.00 2,595.65 13,641.11 (1,095.65) 15,472.00 1,500.00 15,472.00 600.00 600.00 682.24 2,000.00 2,000.00 Dues and Meeting Expense 1,300.00 Software Purchases 6,715.00 1,300.00 6,715.00 Truck Expense and Fuel 4,000.00 4,000.00 3,510.00 1.826.50 932.50 2,000.00 2,000.00 1,610.00 146,078.00 146,078.00 185,342.71 11,000.00 11,000.00 10,915.32 84.68 2,500.00 2,500.00 2,633.56 (133.56) 1,118,373.00 1,118,373.00 1,131,873.00 1,118,373.00 1,131,921.88 (48.88) 49,226.00 4,312.00 49,226.00 49,845.32 (619.32) 4,312.00 4,138.91 173.09 566.00 566.00 574.91 Office Supplies and Equipment 5,000.00 5,000.00 Hospital Insurance 6,886.00 6,886.00 3,195.65 6,040.14 Telephone 450.00 9,200.00 450.00 9,200.00 General Insurance Engineering Equipment Hospital Fees Purchase Insurance Code Books Training Other Expense WTI Expenses 500.00 745.45 1,830.89 (82.24) 2,000.00 554.55 3,205.00 2,173.50 (932.50) 390.00 (39,264.71 ) Police Department: M isce lIaneous Telephone Police Department Contract 1,131,873.00 Court Department Salaries Payroll Taxes Pension Expense (8.91) 1,804.35 845.86 430.15 19.85 8,907.16 Dues and Meeting 1,500.00 1,500.00 1,569.37 292.84 (69.37) Housing for Prisoners-Clayton 2,000.00 2,000.00 8,340.00 (6,340.00) WT1 Expenses 2,000.00 2,000.00 6,368.25 (4,368.25) 11,600.00 11,600.00 92,740.00 92,740.00 11,092.50 100,502.36 (7,762.36) 1,400.00 (1,400.00) 50.28 (1,400.00) (2,749.72) Regis Prosecuting Attorney 507.50 Planning and Zoning Consulting Fees Office Supplies & Expense 20,000.00 20,000.00 99.72 21,400.00 20,150.00 20,150.00 22,899.72 9,600.00 831.00 9,600.00 Payroll Taxes 831.00 9,600.00 734.40 96.60 Office Supplies and Expenses 2,000.00 2,000.00 497.04 1,502.96 Comprehensive Plan Mayors Office Salaries WTI Expenses Dues and Meeting Expense Other 150.00 150.00 1,000.00 1,000.00 70.00 2,500.00 6,000.00 21,931.00 2,500.00 487.55 930.00 2,012.45 6,000.00 21,931.00 1,289.66 4,710.34 12,678.65 9,252.35 40 STATEMENT I (CONTINUED) CITY OF VALLEY PARK, MISSOURI STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCECASH BASIS - WITH COMPARISON TO BUDGET - GENERAL FUND YEAR ENDED JUNE 30, 2011 Budgeted Amounts Orignal Final EXPENDITURES: (Continued) Flood Flood Expenses $ Emergency Management Account Salaries Payroll Taxes Operating Expense Actual $ $ Variance Favorable (Unfavorable) 634.40 634.40 $ (634.40) (634.40) 2,280.00 200.00 500.00 2,980.00 2,280.00 200.00 500.00 2,980.00 2,280.00 174.42 2,454.42 25.58 500.00 525.58 3,076,752.00 3,071,752.00 3,015,356.47 56,395.53 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 14,148.00 29,148.00 72,065.27 42,917.27 OTHER FINANCING SOURCES (USES): Operating Transfer In Operating Transfer Out Total other financing sources (uses): 2,515.02 (5,000.00) (2,484.98) 2,515.02 (5,000.00) (2,484.98) 2,515.02 (5,000.00) (2,484.98) 11,663.02 26,663.02 69,580.29 323,063.83 323,063.83 323,063.83 Total Expenditures EXCESS OF REVENUE AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES FUND BALANCE, JULY 1,20 10 FUND BALANCE, JUNE 30, 2011 $ 334,726.85 41 $ 349,726.85 $ 392,644.12 42,917.27 $ 42,917.27 STATEMENT 2 CITY OF VALLEY PARK, MISSOURI STATEMENT OF REVENUES, EXPENDITURES CASH BASIS - WITH COMPARISON AND CHANGES TO BUDGET IN FUND BALANCE" - RESTRICTED SALES TAX FUND YEAR ENDED JUNE 30, 2011 Variance Favorable Budget Amounts Original Final (U nfavorab!e) Actual REVENUES: Taxes Sales Tax-Capital Improvements Sales Tax-Storm $ Water Sales Tax $ 275,000.00 275,000.00 $ 213,431.23 $ (61,568.77) 175,000.00 175,000.00 233,025.90 58,025.90 275,000.00 275,000.00 314,830.03 39,830.03 725,000.00 725,00000 761,287.16 36,287.16 130,000.00 130,000.00 242,172.81 112,172.81 f30,000.00 130,000.00 242,172.81 112,172.81 2,763.14 2,763.14 68,743.87 (68,743.87) Grants State Grant Total Grants Interest Other 219,966.98 855,000.00 855,000.00 1,074,966.98 40,000.00 3,460.00 40,000.00 81,187.22 (41,187.22) Payroll Taxes Hospital Insurance 13,530.00 3,460.00 13,530.00 6,307.11 11,871.99 (2,847.11) 1,658.01 Retirement 600.00 10,000.00 600.00 10,000.00 1,215.14 4,553.87 (615.14) 5,446.13 40,226.00 40,226.00 462,599.87 56,409.51 Total Revenues EXPENDITURES: Labor Expense O&M Expense Engineering/Contractors Equipment Purchase/Rental Fuel Capital Improvements Other Total Expenditures (UNDER) OF REVENUES 96.19 2,500.00 2,500.00 510,000.00 21,000.00 510,000.00 21,000.00 57,041.30 510,000.00 (36,041.30) 641,316.00 641,316.00 1,026,821.48 (385,505.48) 213,684.00 213,684.00 48,145.50 ( 165,538.50) OVER EXPENDITURES OTHER FINANCING SOURCES Operating Transfers In Operating Transfers Out (USES): Total other financing sources (uses): EXCESS OF REVENUE AND OTHER FINANCING OVER (UNDER) SOURCES EXPENDITURES FINANCING (16,183.51) (345,539.28) 2,403.81 345,539.28 Materials EXCESS (462,599.87) 1,500.00 1,500.00 (96,357.54) (96,357.54) (94,857.54) (94,857.54) (46,712.04) (260,396.04) AND OTHER USES FUND BALANCE, JULY I, 2010 FUND BALANCE, JUNE 30, 2011 $ 213,684.00 213,684.00 1,162,580.32 1,162,580.32 1,376,264.32 42 $ 1,376,264.32 1,162,580.32 $ 1,115,868.28 $ (260,396.04) STATEMENT CITY OF VALLEY STATEMENT OF REVENUES, PARK, MISSOURI EXPENDITURES AND CHANGES CASH BASIS - WITH COMPARISON SPECIAL ALLOCATION 3 IN FUND BALANCE- TO BUDGET - TIF- FUND - PILOTS ACCOUNT YEAR ENDED JUNE 30, 2011 Variance Budgeted Original Amounts 1,500,000.00 $ Favorable (U nfavorable) Actual Final REVENUES: Taxes $ Real Estate Taxes Surtax Total Taxes Interest Total Revenues 1,500,000.00 $ 2,047,338.24 125,000.00 1,625,000.00 125,000.00 1,625,000.00 188,270.26 2,235,608.50 5,000.00 5,000.00 254.83 1,630,000.00 1,630,000.00 10,000.00 100,000.00 100,000.00 $ 547,338.24 63,270.26 610,608.50 (4,745.17) 2,235,863.33 605,863.33 EXPENDITURES: Bank Fees Professional Fees Miscellaneous Total Expenditures EXCESS (UNDER) OF REVENUES Operating OF REVENUES FINANCING SOURCES EXPENDITURES FINANCING 900,000.00 1,010,000.00 620,000.00 620,000.00 81,086.57 18,913.43 900,000.00 991,086.57 2,216,949.90 1,596.949.90 SOURCES(USES): Transfer-Out Total Other Financing EXCESS 900,000.00 1,010,000.00 18,913.43 OVER EXPENDITURES OTHER FINANCING 10,000.00 10,000.00 Sources (Uses) (1,219,921.20) (1,219,921.20) (959,917.05) 260,004.15 (1,219,921.20) (1,219,921.20) (959,917.05) 260,004.15 (599,921.20) (599,92120) 1,257,032.85 1,856,954.05 1,182,957.38 1,182,957.38 1,182,957.38 AND OTHER OVER(UNDER) AND OTHER USES r, 2010 FUND BALANCE, JULY FUND BALANCE, JUNE 30, 2011 $ 583,036.18 43 $ 583,036.18 $ 2,439,990.23 $ 1,856,954.05 CITY OF VALLEY PARK, MISSOURI NOTES TO BUDGETARY COMPARISON SCHEDULE JUNE 30,2011 The City follows these procedures m establishing the budgetary data reflected in the financial statements: 1. The Mayor submits to the Board of Aldermen a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Budgeted expenditures cannot exceed beginning available monies plus estimated revenues for the year. 2. Prior to its approval by the Board of Aldermen, the budget document is available for public inspection. 3. The budget was formally adopted on June 21, 2010. 4. Budgets for City funds are prepared and adopted on the cash basis (budget basis), recognizing revenues when collected and expenditures when paid 5. Budgeted amounts are as originally adopted or as amended by the Board of Aldermen, 44 OTHER SUPPLEMENTARY INFORMATION 288,155.59 799.05 $ - - Total Liabilities and Fund Equ $ $ 288,155.59 288,155.59 - - 288,155.59 288,155.59 799.05 799.05 s s s - $ 799.05 799.05 - Sewer Lateral - s $ $ Valley Days Fund Balances: Restricted Bond Deposits Capital Improvements Debt Service Other purposes Sewer Lateral Assigned Total Fund Balance Liabilities: None Total Liabilities - - s Total Assets LIABILITIES AND FUND EQUITY - $ Cash and Investments Restricted Assets Cash and Investments ASSETS Levee Donations $ $ $ s 5,691.49 5,691.49 5,691.49 5,691.49 5,691.49 - Police Training $ $ $ $ 45 DAR.E. - - - - s $ $ $ Special Revenue Funds 25,659.69 25,659.69 25,659.69 25,659.69 25,659.69 - Deposit Bonds s s $ s CITY OF VALLEY PARK, MISSOURI COMBINING STATEMENTS OF ASSETS, LIABILITIES AND FUND BALANCES ARISING FROM CASH TRANSACTIONS - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 $ 1,271.45 $ 1,271.45 1,271.45 $ 1,271.45 $ 1,271.45 $ - Senior Citizens $ s $ (567.25) $ (567.25) (567.25) - (567.25) (567.25) - Redevelopment 298,993.23 298,993.23 298,993.23 298,993.23 298,993.23 TIT - Corps of Engineers Escrow SCHEDULE I $ $ $ Total Liabilities and Fund Equ $ Total Fund Balance Assigned Sewer Lateral Other purposes Debt Service Capital Improvements Bond Deposits Restricted Fund Balances: None Total Liabilities Liabilities: LIABILITIES AND FUND EQUITY Total Assets Cash and Investments Restricted Assets Cash and Investments ASSETS $ 100,544.60 - 100,544.60 100,544.60 100,54460 $ $ $ - - - 100,544.60 _(ECON) Allocation Fund Surplus Account TIF-Special Allocation TIF-Special Special Revenue Funds $ $ $ 49,462.22 49,462.22 49,462.22 - 49,462.22 49,462.22 $ $ s $ - - - - $ $ $ 46 181,881.12 181,881.12 181,881.12 181.881.12 181,881.12 - $ $ $ $ - $ $ $ $ - $ $ $ $ - - $ $ $ $ - - - - $ $ $ $ Fund Fund Fund Revenue Revenue Block Grant Tax Account - Reserve Fund Reserve Park (UMB) s TIF (95B) TIF (95B) Debt Service TIF (95A) TIF (95A) Debt Service Park (Valley Park) TIF-Peerless Corrununity Development $ Debt Service Funds Allocation Fund- TIF-Peerless Economic Activity TIF-Special SCHEDULE I (CONTINUED) $ Total Liabilities and Fund Equ $ Fund Balances: Restricted Bond Deposits Capital Improvements Debt Service Other purposes Sewer Lateral Assigned Total Fund Balance Liabilities: None Total Liabilities LIABILITIES AND FUND EOUITY - - - s $ - - - s s $ - - $ - - $ $ $ $ TIF 02 Reserve Fund - - - $ $ Total Assets - - $ $ TIF 98 Reserve Fund Cash and Investments Restricted Assets Cash and Investments ASSETS TIF98 Debt Service Fund - - - TIP 03 Reserve Fund 47 s $ $ $ - - - TIF 03 Debt Service Fund Debt Service Funds $ $ $ $ 66,000.00 467,944.38 467,944.38 66,000.00 - 467,944.38 467,944.38 - 467,944.38 s $ $ $ COP 2010 Reserve B Fund 66,000.00 - - 66,000.00 66,000.00 - COP 2010 Reserve A Fund $ s s $ $ $ 0.56 $ 0.56 0.56 - - 0.56 $ 0.56 COP 2010 Debt Service Fund 494,002.09 494,002.09 494,002.09 - - 494,002.09 494,002.09 - COP 2010 Project A Fund Capital Projects SCHEDULE t $ $ s $ 1,979,838.22 1,979,838.22 25,659.69 792,995.32 865,832.88 6,962.94 288,155.59 231.80 1,979,838.22 1,979,838.22 Governmental Funds (CONTINUED) AND OTHER FUND BALANCE, JUNE 30, 20 II FUND BALANCE, JULY 1,2010 FINANCING USES EXPENDITURES FINANCING SOURCES OVER (UNDER) EXCESS OF REVENUES AND OTHER $ $ Total Other Financing Sources (Uses) Operating Transfers-Out Certificate Proceeds Operating Transfers-In OTHER FINANCING SOURCES (USES): (UNDER) EXPENDITURES EXCESS OF REVENUES OVER Total Expenditures Bond Interest and Fees Bank Fees Bond Principal Maintenance Redevelopment EXPENDITURES: Community Development Total Revenues Miscellaneous Interest Taxes Fines and Forfeitures REVENUES: 1,500.00 (1,500.00) (1,500.00) (1,500.00) $ $ __ $ 288,155.59 240,385.15 799.05 47,770.44 47,770.44 30,431.68 30,43[.68 - 78,202.12 78,202.12 799.05 5,000.00 5,000.00 (4,200.95) [9,830.45 19,830.45 1_5,629.50 15,629.50 $ $ $ 48 5,691.49 - 386.18 2,577.49 (386.18) 386.18 386.18 - - (386.[8) $ $ 3,1 [4.00 3,114.00 46.00 46.00 3,160.00 3,160.00 $ s 25,659.69 25,614.63 45.06 45.06 - 45.06 45.06 Deposit Training Lateral Days Donations D.A.R.E. Bond Police Sewer Valley Special Revenue YEAR ENDED JUNE 30, 2011 FUNDS $ $ AND CHANGES IN FUND BALANCES - GOVERNMENTAL EXPENDITURES CASH BASIS - NONMAJOR STATEMENT OF REVENUES, Levee COMBINING CITY OF VALLEY PARK, MISSOURI - - 1,271.45 1,271.45 Citizens Senior $ $ $ (567.25) $ (567.25) (567.25) 567.25 567.25 Redevelopment 298,993.23 298,467.39 525.84 525.84 525.84 525.84 Escrow of Engineers TIF-Corps SCHEDULE 2 FUND BALANCE, JUNE 30, 20t 1 0.21 FUND BALANCE, JUL Y 1,2010 (0.21) (0.21 ) (0.21 ) $ $ $ $ 100,544.60 129,678.81 (29,134.21 ) (120,446.43 ) (120,446.91 ) 0.48 91,312.22 151,391.02 3,900.00 147,491.02 242,703.24 5.91 242,697.33 $ $ 49,462.22 49,462.22 82,593.60 82,593.60 (33,131.38) 33, l3US 4,075.51 29,055.87 - Tax Account $ $ $ - 49 17.21 (17.21) (17.21) (17.21 ) $ 181,881.12 74,800.14 4,028.39 (74,800.14 ) (74,800.14 ) - (74,800.14) $ $ Revenue Park (Valley Park) TIF-Peerless 177,852.73 (659,513.92) (734,314.06) 74,800.14 837,366.65 1,515.26 1,515.26 ~881.91 5.62 838,876.29 Revenue _(ECON) Block Grant Account Park (UMB) Allocation TIF-Peer[ess Community Development Allocation FundEconomic Activity TIF-Special Allocation FINANCING USES FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER EXCESS OF REVENUES AND OTHER Total Other Financing Sources (Uses) Certificate Proceeds Operating Transfers-Out Operating Transfers-In OTHER FINANCING SOURCES (USES): (UNDER) EXPENDITURES EXCESS OF REVENUES OVER Total Expenditures Bond Interest and Fees Bond Principal Bank Fees Redevelopment Maintenance Community Development EXPENDITURES: Total Revenues Interest Miscellaneous Fines and Forfeitures Taxes REVENUES: Special Revenue TIF-Specia[ Fund Surplus TIF -Special $ $ TIF (95(A) 8,867.09 (8,867.09) (3,529.59) 7.30 (3,536.89) (5,337.50) 5,337.50 337.50 5,000.00 Debt Service $ $ $ 79,002.40 (79,002.40) (79,008.96) (79,008.96) 6.56 $ 0.60 6.56 40,001.20 0.51 $ (40,001.20) _(40,003.94) (40,003.94 ) 2.74 2.74 (0.51) 210,598.89 210,601.33 (2.44) (210,599.40) ~600.00 15,600.00 [95,000.00 0.60 6.56 2.74 Reserve Reserve - TIF (95B) TIF(95B) Debt Service TIF (9SA) $ Debt Service SCHEDULE 2 (CONT[NUED) $ $ $ - 0.15 0.15 $ $ 3.08 3.08 3.08 $ $ $ $ $ 20.02 20.02 20.02 $ 96,357.46 96,357.46 0.48 0.48 $ 21.56 21.56 $ 20,262.63 15,629.50 ~267.38 702.14 3,160.00 1,159,775.74 Funds Project A Reserve B - Governmental COP 2010 COP 2010 Debt Service COP 2010 AND OTHER FUND BALANCE, JUNE 30,2011 FUND BALANCE, JULY I, 2010 FINANCING USES EXPENDITURES FINANCING SOURCES OVER (UNDER) EXCESS OF REVENUES AND OTHER Total Other Financing Sources (Uses) Certificate Proceeds Operating Transfers-Out Operating Transfers-In OTHER FINANCING SOURCES (USES): (UNDER) EXPENDITURES (28 [,509.90) 281,509.90 1.06 (281,531.52) (281,531.52) 21.62 (1.06) 666,747.14 666,763.36 (16.22) (666,748.20) 350,012.00 (350,012.00) (350,039.40) (350,039.40) 27.40 50 178,506.00 ( 178,506.00) (178,519.70) (178,519.70) 13.70 1.19 (1.19) 218,661.16 (9.35) 218,670.51 (218,662.35) Total Expenditures EXCESS OF REVENUES OVER 8,662.50 218,662.50 31,750.00 666,750.00 Bond Interest and Fees - 210,000.00 635,000.00 66,000.00 66,000.00 65,996.92 66,000.00 (3.08) 467,944.38 - 467,944.38 467,924.36 (20.02) 467,944.38 0.56 0.56 96,357.54 96,357.54 _(96,356.98) 494,002.09 494,002.09 586,[42.45 586,145.53 3.08 (92,143.44) 92,[65.00 1,979,838.22 1,716,628.40 263,209.82 611,114.12 (1,863,770.05 ) 1,120,086.83 1,354,797.34 (347,904.30) 1,527,171.68 1,045,000.00 152,707.46 10,390.77 $ $ COP 2010 Reserve A 900.00 - 13.70 13.70 - TlF (03) Debt Service Bank Fees Bond Principal - 27.40 27.40 $ Reserve TIF (03) 268,379.14 30,431.68 - 21.62 21.62 $ Reserve Total NonMajor 91,265.00 Community Development $ TlF (02) TIF98 Reserve Capital Projects Redevelopment Maintenance $ 1.80 Miscellaneous Total Revenues EXPENDITURES: 1.80 $ Interest Taxes Fines and Forfeitures REVENUES: TIF98 Debt Service Debt Service SCHEDULE 2 (CONTINUED) SCHEDULE 3 CITY OF VALLEY PARK, MISSOURI COMBINING STATEMENT OF NET ASSETS - CASH BASIS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 201 I Sanitation Total Non Major Funds Water ASSETS Cash and Investments Total Assets $ 239,158.62 $ 49.39 $ 239,208.01 $ 239,158.62 $ 49.39 $ 239,208.01 LIABILITIES Liabilities: None $ $ $ NET ASSETS Total Net Assets 49.39 239,158.62 Unrestricted $ 239,158.62 49.39 $ 51 239,208.01 $ 239,208.01 SCHEDULE 4 CITY OF VALLEY PARK, MISSOURI COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - CASH BASIS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2011 Sanitation OPERATING REVENUES: Charges for Service $ OPERATING EXPENSES: Salaries and Labor Payroll Taxes Pension Expense Hospital Insurance Dumping Fees Truck Expense General Insurance Truck Equipment Lease Other Expenses Uniform Expense Fuel Supplies Tires and Tubes Billing Expense Total Operating Expenses Water 413,302.19 $ TOTAL NET ASSETS, JULY I, 2010 TOTAL NET ASSETS, JUNE 30, 2011 $ $ 413,339.49 163,795,64 13,210,65 2,456,81 31,249.93 75,396.91 6,781.61 9,110.40 26,084.10 90.50 1,742.32 13,803.51 70.00 10,480,69 4,598.58 358,871.65 358,871.65 37.30 54,467.84 (2,497.81) (2,497,81) 54,430.54 (2,460.51) 51,970.03 184,728.08 2,509,90 187,237,98 OPERA TING TRANSFERS NET INCOME (LOSS) AFTER TRANSFERS 37.30 163,795.64 13,210.65 2,456.81 31,249.93 75,396.91 6,781.61 9,110.40 26,084.10 90.50 1,742.32 13,803,51 70.00 10,480,69 4,598.58 54,430.54 NET INCOME (LOSS) BEFORE TRANSFERS Total Non Major Funds 239,158.62 $ 52 49.39 $ 239,208.01 SCHEDULE 5 CITY OF VALLEY PARK, MISSOURI COMBINIG STATEMENT OF CASH FLOWS - CASH BASIS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 201 Total Non Major Sanitation Water Funds Cash Flows from Operating Activities: Cash Received from Custorners 413,302.19 37.30 413,339.49 Cash Payments to Suppliers for Goods and Services (210,713.03) (210,713.03) Cash Payments to Employees For Services (148,158.62) (148,158.62) Net Cash Provided (Used) by Operating Activities 54,430.54 37.30 54,467.84 Cash Flows from Noncapital Financing Activities: Operating Transfers - (2,497.81) (2,497.8 1) Cash iows from Capital and Related Financing Activities: None - - - Cash Flows from Investing Activities: None - - - Cash, Beginning of Year 184,728.08 2,509.90 187,237.98 Cash, End of Year 239,158.62 49.39 239,203.01 Reconciliation of Operating Income(Loss) to Net Cash Provided (Used) by Operating Activities Operating Income(Loss) 54,430.54 37.30 54,467.84 Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities Changes in assets and liabilities: None Net Cash Provided (Used) by Operating Activities 54,430.54 37.30 54,467.84 53